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17 MSEK MSEK KSEK /07 07/08 08/09 09/10 10/ /07 07/08 08/09 09/10 10/ /07 07/08 08/09 09/10 10/ /07 07/08 08/09 09/10 10/11 PRODUCT SALES REFINEMENT VALUE 36 37

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19 FINANCIAL statements ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR MAY 1, 2010 APRIL 30, 2011 proplate AB REGISTERED NUMBER Contents Board of Directors Report 35 Income statement 37 Balance sheet 38 Pledged assets and contingent liabilities 39 Cash flow statement 40 Income statement Parent Company 41 Balance sheet Parent Company 42 Pledged assets and contingent liabilities Parent Company 43 Notes with accounting principles and notes to the financial statements 44 Signatures 53 Board of Directors Report The operation in general The Board and President of Proplate AB, company registration number , based in the Municipality of Karlstad, Sweden, hereby submit the Annual Report and consolidated financial statements for the financial year May 1, 2010 April 30, structure The company is a subsidiary of A Persson Affärsutveckling AB, company registration number Proplate AB is the Parent Company of a with the subsidiary Proplate Oxelösund AB and the dormant subsidiary Proplate Material- och Produktionsstyrning AB. The dormant subsidiary Proplate Mekanik AB was wound up during the financial year through voluntary liquidation. The company s operations The company s operations comprise services such as management, and marketing and sales for the subsidiary. The subsidiary manufactures machinery components from metal plate, chiefly thick high-strength steel. The market situation has continued to improve during the financial year and volumes have increased. 59% (73%) of Proplate s sales were exports. Establishment on the Chinese market has continued to be successful and several new customers have been won. The operation in Oxelösund is carried out in premises hired from company Oxelösundsgösen Fastigheter AB, which built two new industrial buildings during the financial year. These buildings will come into service in May 2011 and will provide increased capacity and efficiency. Proplate s sales and production are forecast to continue to increase in the forthcoming 2011/2012 financial year. Use of financial instruments For a description of the use of financial instruments, please refer to the accounting principles and notes to the financial statements. Environmental information The subsidiary Proplate Oxelösund AB carries out activities requiring notification under the Swedish Environmental Code for the blasting unit and tumblers, as well as for oils and cutting fluids. The company s operation is completely dependent on this permission being granted. The company has quality and environmental management systems certified to EN ISO 9001:2000 and EN ISO 14001:2004. Three-year review Financial year 2010/ / /09 Net sales, KSEK EBITDA, KSEK Profit after financial items, KSEK Balance sheet total, KSEK Equity/assets ratio 29% 21% 18% Number of employees

20 Appropriation of profits The Board proposes the following appropriation of profits. Profit brought forward Profit for the year Total Dividend, 20,000 shares x SEK To be carried forward Total Income statement May 1, 2010 May 1, 2009 Amounts in KSEK Note Apr 30, 2011 Apr 30, 2010 Net sales Change in inventories of goods in progress, finished goods and work in progress Work performed by the company for its own use and capitalized 444 Other operating income The Board s statement on the proposed dividend The proposed dividend reduces the company s equity/assets ratio to 36.5%. This ratio is satisfactory bearing in mind the company s continued profitability. The Board believes that the company s liquidity can be maintained at a similarly satisfactory level. The Board is therefore of the opinion that the proposed dividend does not prevent the company from fulfilling its obligations in the short or long term, or making any necessary investments. The proposed dividend may therefore be justified in accordance with the provisions of Chapter 17, Section 3, paragraphs 2-3 of the Swedish Companies Act. The dividend will be entered as a liability on June 16, As regards the company s results and position in general, please refer to the subsequent income statements and balance sheets and the accompanying notes to the financial statements. Operating expenses Raw materials and consumables Other external expenses Costs of personnel Depreciation/amortization of tangible and intangible assets Other operating expenses Operating profit Profit from financial items Interest income and similar profit/loss items Interest expenses and similar profit/loss items Interest expenses, Parent Company Profit after financial items Profit before tax Current tax Deferred tax Profit for the year

21 Balance sheet Amounts in KSEK Note Apr 30, 2011 Apr 30, 2010 Balance sheet Amounts in KSEK Note Apr 30, 2011 Apr 30, 2010 ASSETS EQUITY AND LIABILITIES Fixed assets Intangible assets Computer software Tangible assets Plant and machinery on third-party property Plant and machinery Equipment Construction in progress Total fixed assets Current assets Inventories etc. Raw materials and consumables Work in progress Finished goods and goods for resale Current receivables Accounts receivable Tax assets 298 Receivables from Parent Company 26 Other receivables Prepaid costs and accrued income Cash and bank Total current assets TOTAL ASSETS Equity 11 Capital stock (20,000 shares) Restricted reserves Non-restricted reserves Profit for the year Provisions Provisions for deferred tax Long-term liabilities Liabilities to credit institutions Liabilities to Parent Company Other liabilities Current liabilities Bank overdraft facility Liabilities to credit institutions Accounts payable Liabilities to Parent Company Current tax liabilities Other liabilities Accrued expenses and deferred income TOTAL EQUITY AND LIABILITIES Pledged assets and contingent liabilities Amounts in KSEK Apr 30, 2011 Apr 30, 2010 Pledged assets For own liabilities and reserves Chattel mortgages Machinery Total pledged assets Contingent liabilities None None 38 39

22 Cash flow statement May 1, 2010 May 1, 2009 Amounts in KSEK Apr 30, 2011 Apr 30, 2010 Income statement Parent Company May 1, 2010 May 1, 2009 Amounts in KSEK Note Apr 30, 2011 Apr 30, 2010 Operating activities Profit after financial items Depreciation/amortization Other items which do not affect cash flow 451 Current tax Cash flow from operating activities before changes in working capital Cash flow from changes in working capital Increase (-)/Decrease (+) in inventories Increase (-)/Decrease (+) in operating receivables Increase (+)/Decrease (-) in operating liabilities Cash flow from operating activities Investing activities Acquisition of intangible assets -456 Acquisition of tangible assets Cash flow from investing activities Financing activities New share issue Change in interest-bearing liabilities Dividend paid Cash flow from financing activities Net sales Operating expenses Other external expenses Costs of personnel Depreciation/amortization of tangible and intangible assets Other operating expenses -14 Operating profit Profit from financial items Profit from participations in companies Other interest income and similar profit/loss items 4 Interest expenses and similar profit/loss items -4-6 Interest expenses, Parent Company Profit after financial items Appropriations Appropriations, other Profit before tax Current tax Profit for the year Cash flow for the year Liquid funds at beginning of year Liquid funds at end of year

23 Balance sheet Parent Company Amounts in KSEK Note Apr 30, 2011 Apr 30, 2010 Balance sheet Parent Company Amounts in KSEK Note Apr 30, 2011 Apr 30, 2010 ASSETS EQUITY AND LIABILITIES Fixed assets Tangible assets Equipment Financial assets Participations in companies Total fixed assets Current assets Current receivables Receivables from subsidiaries Tax assets 91 Prepaid costs and accrued income Cash and bank Total current assets TOTAL ASSETS Equity 11 Restricted equity Capital stock (20,000 shares) Statutory reserve Non-restricted equity Profit brought forward Profit for the year Untaxed reserves 12 Tax allocation reserves Long-term liabilities Liabilities to Parent Company Current liabilities Accounts payable Bank overdraft facility Liabilities to Parent Company Liabilities to subsidiaries 9 Current tax liabilities 782 Other liabilities Accrued expenses and deferred income TOTAL EQUITY AND LIABILITIES Pledged assets and contingent liabilities Parent Company Amounts in KSEK Apr 30, 2011 Apr 30, 2010 Pledged assets For own liabilities and reserves Chattel mortgages Total pledged assets Contingent liabilities None Guarantees for the benefit of companies

24 Notes with accounting principles and notes to the financial statements Amounts in KSEK unless otherwise stated General accounting principles The Annual Report has been prepared in accordance with the Annual Accounts Act and the recommendations of the Swedish Financial Accounting Standards Council. The accounting principles are unchanged compared with last year. Valuation principles etc. Assets, provisions and liabilities have been measured at cost unless otherwise stated below. Accounting treatment of revenue Revenue has been recognized in accordance with Swedish Accounting Standards Board BFNAR 2003:3 Revenues. The company s revenue is the fair value of what has been received or will be received. Government support Government support is recognized at fair value when it is reasonably certain that the support will be received and that the will fulfill all the associated terms and conditions. Government support relating to expected costs is entered as deferred income. The support is taken up as income for the period in which the costs arise which the government support is intended to compensate. Intangible and tangible assets Depreciation/amortization Depreciation/amortization according to plan is based on the original cost less any residual value. The depreciation/amortization is carried out linearly over the asset s useful life and entered as an expense in the income statement. The following depreciation/amortization periods are applied: Computer software 5 years Plant and machinery on third-party property 5-20 years Plant and machinery 5-10 years Useful life Parent Company Equipment, tools and installations 3-5 years 3-5 years Receivables Receivables are reported at cost less any write-down. Inventories Inventories are entered at the lower of cost in accordance with the first-in first-out principle, and fair value. The risk of obsolescence has therefore been observed. In semi-finished and finished goods produced by the company itself, the cost comprises direct production costs and a reasonable proportion of indirect costs. Expenses for development Expenditure on research and development is generally expensed as it arises. Expenditure on developing business systems which are deemed to have a material value for the company have been capitalized. The capitalization relates to direct costs incurred as well as a reasonable proportion of indirect costs. Amortization commences on completion of the project. Financial instruments Financial instruments recognized in the balance sheet include liquid funds and accounts receivable under assets. Accounts payable and borrowings are entered under liabilities. Recognition in and removal from the balance sheet A financial asset or financial liability is entered in the balance sheet when the company becomes a party in accordance with the instrument s contractual conditions. Accounts receivable are recognized in the balance sheet once an invoice has been sent. Liabilities are entered when the counterparty has delivered and there is a contractual obligation to pay, even where an invoice has not yet been received. A financial asset is removed from the balance sheet when the rights in the agreement are realized or the company loses control of them. A financial liability is removed from the balance sheet when the obligation in the agreement is fulfilled or comes to an end in some other way. Financial assets and financial liabilities are only offset and recognized as net amounts in the balance sheet when there is a legal right to offset the amount, and when the intention is to clear the items simultaneously or with a net amount. Liquid funds comprise cash as well as balances which are immediately available from banks and equivalent institutions, including tax accounts. Cash flow exposure cash flow hedges Known incoming cash flows in USD are hedged through forward contracts. Cash flows in EUR, which comprise both incoming and outgoing cash flows, are not hedged. Tax The company and apply the Swedish Accounting Standards Board s general advice on reporting income tax, BFNAR 2001:1. Total tax comprises current tax and deferred tax. Taxes are recognized in the income statement except when the underlying transaction is entered directly against equity, whereby the tax effect is also entered in equity. Current tax is tax to be paid or received relating to the current year. It also includes any adjustment of current tax relating to earlier periods. Deferred tax is calculated using the balance sheet method based on temporary differences between the carrying amount and tax written-down values of assets and liabilities. The amounts are calculated based on how the temporary differences are expected to be evened out and by applying the tax rates and fiscal regulations that are in place or pending at the end of the accounting year. Temporary differences are not included in goodwill, not in differences attributable to participations in subsidiaries and associated companies which are not expected to be taxed in the foreseeable future. In legal entities, untaxed reserves are reported including deferred tax liability. In the consolidated accounts, however, untaxed reserves are divided between deferred tax liability and equity. Deferred tax assets regarding deductible temporary differences and loss carry-forwards are only recognized to the extent that it is likely that they will entail lower tax payments in the future. Leasing lessees Swedish Financial Accounting Standards Council recommendation RR 6:99 is applied. Leasing is classified in the consolidated accounts either as financial or operating leasing. Financial leasing exists when the economic risks and benefits associated with ownership are, in all essentials, passed on to the lessee, otherwise the lease is classed as an operating lease. Assets hired in accordance with financial leases have been entered as assets in the balance sheet. The obligation to pay future leasing fees has been reported under long-term and current liabilities. The leased assets are depreciated according to plan, while the lease payments are recognized as interest and debt repayments. With operating leasing, the leasing fee is entered as an expense over the term of the lease based on utilization, which may differ from what has in fact been paid through leasing fees during the year. In legal entities, all leasing agreements are reported in accordance with the rules for operating leasing. Consolidated financial statements The consolidated financial statements have been prepared in accordance with recommendation RR 1:00 of the Swedish Financial Accounting Standards Council. Subsidiaries Subsidiaries are companies in which the Parent Company directly or indirectly owns more than 50% of the number of votes or in some other way has a controlling influence over the operational and financial management. Subsidiaries are generally recognized in accordance with the acquisition method. With the acquisition method, the acquisition of a subsidiary is considered a transaction whereby the Parent Company indirectly acquires the subsidiary s assets and assumes its liabilities. As of the acquisition date, the acquired company s income and expenses, identifiable assets and liabilities and any goodwill or negative goodwill are included in the consolidated accounts. The Proplate was formed through a reorganization within the to which it belongs. The subsidiaries were acquired on April 30, The purchase sum corresponded to the Parent Company s book values. The negative difference which arose as a result of the transaction, i.e. because the acquired companies adjusted equity exceeded the purchase sum, has been added directly to equity. Furthermore, the s costs and accumulated depreciation/amortization in notes for plant have been recognized consistently with the former structure. Inter-company profit within the is eliminated in its entirety. In the Parent Company accounts, participations in subsidiaries are measured at cost less any write-down. Only the dividend received from profit earned after the acquisition is recognized as a dividend. Goodwill goodwill arises when the cost on acquisition of participations in subsidiaries exceeds the fair value of the acquired company s identifiable net assets. Goodwill is entered at cost less accumulated value adjustments. information Of the Parent Company s total sales measured in SEK, 100% (100%) of sales relate to transactions with other companies within the whole corporate group to which the company belongs. The Parent Company does not purchase any goods

25 Note 1 Auditor fees and remuneration Parent Company Auditing, PWC The assignment included auditing services only. Note 2 Employees and costs of personnel Sick leave, May 1, 2010 May 1, 2009 Apr 30, 2011 Apr 30, 2010 Total sick leave as a percentage of standard working hours 3% 2% Percentage of total sick leave relating to consecutive sick leave of 60 days or more 13% 0% Sick leave as a percentage of each group s standard working hours: Average number of employees May 1, 2010 of whom May 1, 2009 of whom Apr 30, 2011 men Apr 30, 2010 men Parent Company 4 75% 4 75% Subsidiaries % 74 91% total % 78 90% Corporate management gender distribution Gender distribution in corporate management Apr 30, 2011 Percentage of women Apr 30, 2010 Percentage of women Parent Company Board of Directors 0% 0% total Board of Directors 0% 0% Wages, salaries, other remuneration and social security expenses May 1, Apr 30, 2011 May 1, Apr 30, 2010 Pay and remuneration Social security expenses Pay and remuneration Social security expenses Parent Company (of which pension costs) 1) (945) 1) (972) Subsidiaries (of which pension costs) (963) (1 141) total (of which pension costs) (1 908) (2 113) Sick leave by gender: Men 3% 2% Women 5% 4% Sick leave by age category: 29 years or younger 4% 4% years 3% 2% 50 years or older 6% 1% Note 3 Depreciation/amortization of tangible and intangible assets May 1, 2010 May 1, 2009 Apr 30, 2011 Apr 30, 2010 Parent Company Equipment May 1, 2010 May 1, 2009 Apr 30, 2011 Apr 30, 2010 Depreciation/amortization according to plan, by asset Intangible assets Tangible assets ) Of the Parent Company and pension costs, KSEK 624 (KSEK 659) refers to the Board of Directors and President. Wages, salaries and other remuneration distributed between Board members etc. and other employees May 1, Apr 30, 2011 May 1, Apr 30, 2010 Board and President Other employees Board and President Other employees Parent Company Subsidiaries total

26 Note 4 Computer software Apr 30, 2011 Apr 30, 2010 Accumulated cost Opening balance New acquisitions Accumulated depreciation according to plan Opening balance Amortization for the year according to plan Carrying amount at end of period Note 5 Plant and machinery on third-party property Apr 30, 2011 Apr 30, 2010 Accumulated cost Opening balance New acquisitions Accumulated depreciation according to plan Opening balance Depreciation of costs for the year according to plan Carrying amount at end of period Note 6 Plant and machinery Apr 30, 2011 Apr 30, 2010 Accumulated cost Opening balance New acquisitions Reclassifications from construction in progress Divestments and disposals Accumulated depreciation according to plan Opening balance Divestments and disposals Depreciation of costs for the year according to plan Leasing Apr 30, 2011 Apr 30, 2010 Including plant held under financial leases with a carrying amount of Note 7 Equipment Apr 30, 2011 Apr 30, 2010 Accumulated cost Opening balance New acquisitions Accumulated depreciation according to plan Opening balance Depreciation of costs for the year according to plan Carrying amount at end of period Apr 30, 2011 Apr 30, 2010 Parent Company Accumulated cost Opening balance New acquisitions Accumulated depreciation according to plan Opening balance Depreciation of costs for the year according to plan Carrying amount at end of period Note 8 Construction in progress Apr 30, 2011 Apr 30, 2010 Opening balance New acquisitions Reclassification to plant Carrying amount at end of period Leasing Apr 30, 2011 Apr 30, 2010 Including constructions held under financial leases with a carrying amount of Carrying amount at end of period

27 Note 9 Participations in companies Apr 30, 2011 Apr 30, 2010 Accumulated cost Opening balance Disposal (voluntary liquidation) -520 New share issue Carrying amount at end of period Profit from participations in companies Dividend Break-up result -4 Anticipated dividend Spec. of Parent Company and holdings of participations in companies No. of Holding Carrying Subsidiary / Reg. no. / Domicile participations in % amount Note 11 Equity Share capital Restricted reserves Non-restricted equity Opening balance Adjustments between non-restricted and restricted equity Dividend Profit for the year At year-end Share capital Statutory reserve Non-restricted equity Parent Company Opening balance Appropriation in acc. with AGM decision Dividend Profit for the year At year-end Proplate Oxelösund AB, , Oxelösund, Sweden , Proplate Material- och Produktionsstyrning AB, , Falun, Sweden , Refers to owned percentage of equity, which also corresponds to the proportion of votes for the total number of shares. Note 10 Prepaid costs and accrued income Parent Company Prepaid social security expenses 64 Prepaid payroll expenses 203 Prepaid rent Other items Note 12 Untaxed reserves Apr 30, 2011 Apr 30, 2010 Tax allocation reserves Provision for 2006 taxation 20 Provision for 2010 taxation Provision for 2011 taxation Provision for 2012 taxation KSEK 365 (KSEK 270) of the untaxed reserves relates to deferred tax. Deferred tax is not recognized in the Parent Company balance sheet, but it is in the balance sheet. Note 13 Liabilities to credit institutions Parent Company Pledged assets for liabilities to credit institutions Chattel mortgages Machinery Other liabilities to credit institutions due in 1-5 years

28 Note 14 Bank overdraft facility Parent Company Credit limit granted, SEK Credit limit granted, EUR The income statement and balance sheet will be presented for adoption at the Annual General Meeting on June 16, Karlstad, Sweden. June 15, 2011 Assets are recognized in Note 13 under Pledged assets for liabilities to credit institutions. Note 15 Accrued expenses and deferred income Parent Company Accrued payroll expenses Accrued social security expenses Hans Åke Norås Chairman Max Björk President Anders Persson My audit report was submitted on June 16, 2011 Other items Note 16 Other operating income Peter Eklund Esbjörn Löfstrand Joakim Ringman Authorized Public Accountant May 1, 2010 May 1, 2009 Apr 30, 2011 Apr 30, 2010 Audit report Currency gains on receivables/liabilities that are operational in character Other operating income To the annual meeting of the shareholders of PROPLATE AB Corporate identity number Note 17 Other operating expenses May 1, 2010 May 1, 2009 Apr 30, 2011 Apr 30, 2010 Currency losses on receivables/liabilities that are operational in character Other operating expenses I have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of PROPLATE AB for the financial year These accounts and the administration of the company and the application of the Annual Accounts Act when preparing the annual accounts and the consolidated accounts are the responsibility of the board of directors and the managing director. My responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on my audit. I conducted my audit in accordance with generally accepted auditing standards in Sweden. Those standards require that I plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and consolidated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for my opinion concerning discharge from liability, I examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. I also examined whether any board member or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. I believe that my audit provides a reasonable basis for my opinion set out below. The annual accounts and the consolidated accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company s and the group s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts. I recommend to the annual meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year. Karlskoga June 16 th, 2011 Joakim Ringman Authorized Public Accountant 52 53

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