Optishop ™ – Optimisation of shelf space - HL Display

Annual Report 2000

Content
The Year in brief.......................... 3
Statement by the CEO .................... 4
Business concept ........................ 6
The HL Display model .................... 7
HL Display position....................... 8
Operations – Optishop ................. 10
Operations – Shop Fixtures .............. 14
Operations – Shop Systems ............. 15
Market.................................. 16
Production and Environment ............. 18
Employees .............................. 20
Risk and sensitivity analysis ............. 22
Board of Director's report ............... 24
Income statement ....................... 25
Balance sheet........................... 26
Cash fl ow statement .................... 28
Notes................................... 29
Auditors' report ......................... 37
The HL Display share.................... 38
Board of Directors....................... 40
Board procedures ....................... 41
Senior Executives ....................... 42
Defi nitions and glossary ................. 43
Several years summary.................. 44
History
Financial information
Annual General Meeting .......... 19 March
Monthly report, 2 months ........ 19 March
Interim report, 3 months ........... 18 April
Monthly report, 4 months .......... 16 May
Monthly report, 5 months ......... 15 June
Interim report, 6 months ............16 July
Monthly report, 7 months ....... 15 August
Interim report, 8 months .... 17 September
Interim report, 9 months ........16 October
Monthly report, 10 months . . . 15 November
Monthly report, 11 months . . . 17 December

It is all about a positive
shopping experience
The main purpose of
merchandising is to
encourage the
shopping experience.
A positive experience
in a store with attractively displayed
goods stimulates the consumer to buy
goods and to come back.
HL Display’s display and merchandising
systems contribute to a heightened
shopping experience and, as a consequence,
increased profi tability for storeowners and
brand manufacturers.
It is all about meeting and exceeding the
customer’s expectations.
HL Display 2000
1

Focus on growth
2 HL Display 2000
HL Display is a global niche company experiencing strong
growth. Since HL Display was listed on the Stockholm
stock exchange in 1993, annual net sales have, on
average, risen by 28 per cent with an average annual
profi t margin of 10 per cent. In 2000 the group recorded
net sales of SEK 874 M and employed just over 800
people.
The market and the interest in merchandising is growing
at a time when HL Display’s customers are expanding
considerably. HL Display focuses on continued growth.
The objective is to achieve an annual growth rate of
at least 20 per cent with an average profi t margin of
between 10 and 15 per cent during one business cycle.
Group net sales
SEK M
1,000
800
600
400
200
0
96
97
98
99
00
Profit/Share
SEK
6
5
4
3
2
1
0
96
97
98
99
00
Equity/Share
SEK
35
30
25
20
15
10
5
0
96
97
98
99
00

�� Group net sales increased by 13.7 per cent to SEK 873.9 M (768.5).
�� Pre-tax profi ts decreased to SEK 44.1 M (47.1).
�� Earnings per share after tax stood at SEK 3.48 (4.20) as of 31st December 2000.
Equity per share amounted to SEK 31.07 (28.89).
�� Investments continue to be high, particularly in the production process.
Net investments totalled SEK 58.1 M (67.9).
�� The change in the organisation has taken longer then expected.
�� Establishment of sales companies in Singapore and Ukraine.
Key fi gures (in 1,000 SEK)
2000 1999 1998
Group net sales 873,921 768,451 646,646
Operating profi ts 47,731 55,401 69,042
Pre-tax profi ts 44,095 47,125 70,969
Number of employees, average 773 706 582
Profi t margin, % 5.0 6.1 11.0
Equity/assets ratio, % 47.6 51.6 52.0
HL Display 2000
3

STATEMENT BY THE CEO
We are on the right track
Despite continued positive growth in HL Display, we have to conclude that the fi nancial year 2000 was a
mediocre year, characterised by preparation and change. But we have the target in sight!
4 HL Display 2000
HL Display is going through a period of major changes.
It has taken longer than anticipated to reorganise our sales
organisation which has had a negative affect on both net
sales and profi ts.
Last year, group sales rose by 13.7 per cent. Operating
profi ts amounted to SEK 47.7 M (55.4) representing a
decrease of 13.8 per cent.
Essentially, the reorganisation has been a positive
experience and we are in the process of becoming the
European leader in merchandising systems.
Continued consolidation of the retail trade
The wave of consolidation that has swept the European retail
trade in the last few years is still continuing. Several of
the very powerful market players have become even more
powerful showing rapid growth in new markets. Many of
today’s market players have already gone global. They
are expanding considerably, primarily through mergers and
acquisitions, in order to achieve synergy effects and economy
of scale. This trend is benefi cial to us since we are a
very well developed international organisation and able to
supply our customers with the same service in several different
markets. This trend also means larger volumes from
which HL Display can derive additional benefi ts, even
though this has led to increased downward pressure on prices
in the entire sector. By climbing higher on the value chain
and offering total solutions to our customers we are able to
create the right conditions for larger volumes and improved
margins.
Parallel to the consolidation of the retail trade, there is
also development towards centralising purchasing activities.
Crucial decision-making on investments is moved within the
company from stores to central functions. The chains have
worked out concepts which determine the interior design of
the stores and how goods are displayed. For HL Display,
this means that cross-border relationships with customers
have become increasingly important. For all major
customers HL Display has appointed a Key Account
Manager who coordinates all activities on a global level.
Natural speaking partner
The European food retail sector is the most important market
for HL Display. We are increasingly becoming a natural partner
with regard to our customers’ shop fi xtures. We have attained
a very strong position in Europe and supply almost 90 per
cent of the largest chains. Exports to EU countries accounted
for 79 per cent of HL Display’s total net sales in 2000.
The single largest markets are France, Sweden and Great
Britain. HL Display continues to grow also geographically. In
2000 we opened sales companies in two new markets, namely
Singapore and Ukraine. The sales company in Singapore is
also responsible for some other markets in South-East Asia.
Despite limited efforts in the American market, sales in
the US have shown continued growth during the year. In
fact, sales rose to SEK 20.0 M or 2.3 per cent of total net
sales, representing an increase of 21.0 per cent compared
with the same period last year. The marketing is handled by
our partner, Trion Industries, who is a leading supplier of
metal display hooks in the US.
Merchandising is becoming increasingly important
The development of merchandising has been stronger in the
American market than in Europe. Still, American suppliers
have not yet been able to establish themselves over here
which could be attributed to cultural differences and the fact
that the European market is very fragmented. In terms of
innovative display of goods, France has become the leading
European market. Following the European launch of the
merchandising system Optishop in 2000, HL Display can
offer a total solution. The concept not only makes work on
the shop fl oor easier so that staff can devote more time to
personal service, it also creates room for new goods on the
shelves, a logical structure as well as a clear presentation of
products. Most important of all, however, is the increase in
sales generated by our systems.
In 2001 we will intensify our efforts and implement our
concept in several markets. Optishop provides us with very
good opportunities to achieve new sales successes and makes
us the obvious partner in the merchandising sector as we
already are when it comes to shop fi xtures. In markets where

we are making most effort, we are beginning to see the fruit
of our work. We are growing into a new division and are
being accepted as a merchandising company. Today we enter
into customers' procurement processes at an earlier stage.
Specialising in factories
Last year, the price for PVC reached its highest level since
1988. By the end of the year the price began to fall. For
the most part it has not been possible to pass on this price
increase to the customer since we are bound by supply
agreements with the majority of our customers where prices
are negotiated once a year. Compared with 1999, the price
was on average 14.3 per cent higher in 2000, which resulted
in a drop in profi ts of SEK 8.6 M.
Production in our factories has become much more
effi cient with improved fl ow. All factories are aiming to
specialise in fewer products. A constant increase in productivity
is necessary in order to maintain a competitive
edge. HL Display continues to work towards improving our
IT-support to optimise and standardise all processes. The
future rate of investment is also to remain high. Our rapid
growth calls for regular investments in new machinery, but
also in technology and product development. Net investment
in 2000 amounted to SEK 58.1 M (67.9).
Improvement of the Internet shop
The infl ow of orders via our in-house developed sales channel
HL Smart Shop, where customers effectively place orders
via the Internet, EDI or by telephone, has not developed as
expected. Therefore, we increase marketing activities aimed at
our customers and add more facilities. So far, HL Smart Shop
has been put into operation in Sweden and Norway. Great
Britain, Belgium and the Netherlands are next in line during
this year. In the long-term, HL Smart Shop will be launched
in all European markets.
Continued restructuring
Just over one year ago, a new organisation structure was
introduced within the company in order to meet the
increased needs and demands of our major customers more
effi ciently. We
underestimated the
diffi culties inherent
in the
re organisation of
our sales organisation.
This change
consumed more
time and effort
than we anticipated.
Many new
measures are
already in place
but we will need
this year to fi nalise
the entire plan. The expertise required to deliver solutions
that contribute to a better shopping experience can be found
at HL Display, even though certain positions are yet to be
fi lled. Throughout the entire company there is a strong belief
in the future. As our preliminary work is now nearing its fi nal
phase we are ready to take up our new role.
Future prospects
Our vision and our ambitions remain unchanged. In the course
of one business cycle we should achieve an annual average
growth rate of at least 20 per cent with a profi t margin of
between 10 and 15 per cent.
The venture to develop HL Display from its current
position as a supplier of display products to a leading
merchandising company, from fi eld sales to Key Account
Management, was by no means a natural one. It requires
time and resources and has temporarily infl uenced net sales
and profi ts negatively. In the long-term these changes are
necessary to ensure future growth and profi ts, in accordance
with the vision adopted by HL Display.
Anders Remius, CEO
STATEMENT BY THE CEO
HL Display 2000
5

BUSINESS CONCEPT
International growth is the driving
force for HL Display
The core of HL Display’s business concept is to offer systems that result in increased profi tability by means
of better exposure. Clear displays and attractive shop interiors are conducive to a positive shopping experience
and therefore increase sales.
6 HL Display 2000
As early as in the 1950s, HL Display started to manufacture
aids to display goods in stores, such as plastic label holders.
Development was swift and the company has grown from
a small entrepreneurial company into an international group
while retaining a strong entrepreneurial spirit. Today, HL
Display has 805 employees in 17 countries and net sales
of SEK 874 M. The company has been listed on the OM
Stockholm Stock Exchange since 1993 and is owned by
3,063 shareholders, most of them Swedish.
Business concept
HL Display shall increase customer profi tability by offering
the retail trade and its suppliers cost-effi cient, customeradapted
display systems. Production is to be fl exible and
delivery times are to be kept short.
Vision
HL Display’s vision is to be the leading supplier of merchandising
systems as well as the most cost-effective supplier of
shop fi xtures. HL Display want to be a leading company not
only in terms of market share, but also in terms of knowledge
of client requirements together with design and production
expertise.
Corporate objectives
HL Display’s overall objective is a stable growth rate with
good profi tability and an increase in shareholder value.
HL Display has drawn up a number of objectives for its
activities. The fi nancial objectives are:
�� Continued average growth of at least 20 per cent each year
during one business cycle.
�� An average profi t margin of between 10 and 15 per cent
in the same period.
�� Equity/assets ratio of at least 40 per cent.
The fi nancial objectives are complemented by the following
qualitative objectives:
�� Vertical integration, i.e: use of internal resources fi rst.
�� To become the leading market player within development
and design in our niche market.
�� To increase the effi ciency of product sales by means of
IT-support.
�� To become a natural speaking partner for major clients
also within merchandising.
�� To continue the geographic expansion by establishing new
subsidiaries in and outside Europe.
Strategy
In order for HL Display to achieve the objectives set out for
its activities, a number of key strategies have been drawn up.
In brief, these stipulate that HL Display is to:
�� Maintain its business concept and core activities.
�� Expand by primarily exploiting internal resources.
�� Retain key employees and attract new ones.
�� Be perceived and act as one company in different markets.
�� Constantly adapt its organisation according to the requirements
and needs of the market.
�� Exploit IT-support in order to standardise processes.
�� Develop an expertise within research and development as
well as design.
�� Strengthen business culture by retaining the focus on
growth and changes.

Profi table business is based on good
customer relations
Knowledge and understanding of customers’ problems is a condition in order to become a strategic partner.
Good customer relations provide HL Display with the opportunity to deliver added value to the customer and increase
profi tability for each project.
The European retail sector is undergoing considerable changes
which consolidate HL Display’s customers. Major chains
are expanding abroad through mergers and acquisitions. At
the same time, decisions with regard to purchases are moved
up within the customer organisation from the shop manager
to central functions. These customers increasingly require
central agreements with suppliers who can offer total solutions
in several markets. This has placed new demands on
HL Display’s sales organisation, at a time when customer
relations are becoming increasingly important. Last year HL
Display focused on getting its new organisation off the
ground, an organisation which has unprecedented opportunities
to dedicate resources to key customers. To safeguard
such long-term customer relations, HL Display has appointed
a Key Account Manager (KAM) for its major clients. The
KAM has been given global responsibility as many of our
major customers operate in several markets.
Knowing the customer
The overall strategy for Key Account Management is to
work with the customer’s organisation and structure as a
starting point. Knowledge about the customer and the customer’s
activities are important in order to deliver a value
which is greater than the functions of the product. With
customer knowledge and experience within merchandising,
the KAM can identify solutions to the customers’ problems.
Management and coordination of all customer contacts is
entrusted to one person: the Key Account Manager.
Within HL Display, the KAM builds closer relationships
with key customers, draws up strategies and market plans.
The KAM involves many parts of the company and adopts a
transverse function through HL Display’s different channels.
HL Display model
HL Display has developed a model for operational activity.
The model illustrates the company’s working process and
consists of four sections: product range, concept, channels and
customers. Development and design as well as environmental
concerns are basic requirements for the workfl ow.
The HL Display model
Product range Concepts Channels Customers
P
R
O
D
U
C
T
I
O
N
P
R
O
D
U
C
T
S
Product range
Shop
Fixtures
Optishop
Shop
Systems
The range refers to all products that are supplied by HL Display.
The majority is manufactured in-house. All products are
‘owned’ by the product managers employed in each factory.
Main production takes place in Sweden. 84 per cent of sales
are attributed to exports. Smaller production sites are located
in the UK and the Netherlands. Datastrips is also manufactured
in the US through a joint venture with Trion Industries Inc. in
Wilkes-Barre, Pennsylvania.
Concept
With the product range as a basis, different concepts are made
up in order to illustrate HL Display’s offers. One product can
be part of more than one concept. HL Display markets three
different concepts. These are: Shop Fixtures, Optishop and
Shop Systems. With Shop Fixtures and Optishop more than
90 per cent of the products are manufactured by HL Display.
With Shop Systems the corresponding fi gure is around 50 per
cent.
Channels
HL Display’s concepts are offered to customers via several sales
channels. The sale channels represent different types of customer
process, which are HL Smart Shop, product sales and project
sales. Key Account Management coordinates all activities and
has the overall responsibility for cooperation with customers.
Customers
HL Display’s customers are active in the retail food sector,
retail non-food sector and brand manufacturers industries.
K
E
Y
A
C
C
O
U
N
T
M
A
N
A
G
E
M
E
N
T
HL Smart
Shop
Product
Sales
Project
Sales
THE HL DISPLAY MODEL
Retail Food
Retail Non-Food
Brand
Manufacturers
HL Display 2000
7

HL DISPLAY'S POSITION
A strong position in a changing market
The wave of mergers and acquisitions that characterised the retail industry in 1999 showed no signs of slowing
down in 2000. Continuous consolidation of the industry prevails as large players become even larger and expand
their concepts to new markets.
The strong consolidation trend which has prevailed in the retail
industry for a couple of years, with large retail chains growing
even larger, continued also in 2000. The large chains have
expanded greatly through takeovers and mergers. Currently
there are no signs that this trend is weakening, on the contrary
it is set to become even stronger in the years ahead.
Several major deals were realised last year. The EU’s
fi nal approval of the merger between the French retail
chains Carrefour and Promodès created Europe’s largest
and the world’s fourth largest retail chain. The Dutch food
retail giant Ahold fi rmly established its presence in the
Scandinavian market by acquiring 50 per cent of ICA. The
market concentration in Europe is increasing. In Sweden, for
example, the three largest players (ICA, KF and Axfood)
currently have a market share of 95 per cent.
Several of the truly major players are also global players,
Ten largest retail food chains
Europe The world
including Wal-Mart
of the US, Ahold
of the Netherlands,
1 Carrefour/Promodès (FR)
2 Metro AG (DE)
3 Intermarché (FR)
4 Rewe (DE)
1 Wal-Mart (US)
2 Metro AG (DE)
3 Kroger (US)
4 Carrefour/Promodès (FR)
Carrefour of France
and Tesco of Great
Britain. Three of the
5 Auchan (FR) 5 Albertson’s US)
fi ve largest retail
6 Tesco (UK) 6 Rewe (DE)
chains in the world
7 Aldi (DE) 7 Intermarché (FR)
are from the US.
8 Edeka (DE) 8 Ahold (NL)
Apart from Wal-
9 J.Sainsbury (UK) 9 Tesco (UK)
Mart, US chains owe
10 Leclerc (FR) 10 Tengelmann (DE)
their size mainly to
Source: Elsevier Food International Retail Pocket 2000.
their large home
This is what the consumer feels is most
important, in per cent
market.
This consolida-
1 Clean store environment 71
2 Fruit & vegetables 67
tion and globalisation
trend is benefi -
3 Orderliness 65
cial to HL Display
4 Meat & delicatessen 64
which has a well-
5 Easy to fi nd 58
developedinterna- 6 Knowledgeable staff 56
tional organisa tion.
7 Personal service 53
This trend also
8 Good parking facilities 49
involves larger
9 Always low prices 42
volumes from
Source: SIFO Research & Consulting; survey
commissioned by dairy group Arla.
8 HL Display 2000
which HL Display can derive additional benefi ts, but it also
gives rise to strong downward pressure on prices in the
industry.
Centralisation
Concurrently with the consolidation of the retail industry,
purchasing is becoming increasingly centralised. The chains
have prepared concepts which govern the design and
appearance of their stores. In these cases the shop managers no
longer decide the product range or how it will be displayed.
Instead they receive a concept which they must implement. As
a consequence, HL Display must be able to increase its offer
of conceptual solutions as a complement to traditional
product sales. To keep up with this development, HL
Display must also establish relationships at a higher level
in customers’ organisations. Due to this development, crossborder
relationships with clients have become a key factor,
and consequently HL Display is working actively with global
Key Account Management. Current trends also indicate that
brand manufacturers and retail companies will further their
cooperation to boost sales.
Focus on the consumer
The retail industry is focusing more on the consumer and
it is becoming increasingly important to stimulate the desire
to buy and ensure that the customer feels at home and will
return. Loyalty to one store is not particularly strong despite
the proliferation of different bonus card types.
The average customer alternates between three to four different
stores. A positive experience in the store is vital to tempt
the customer to return. The experience can be heightened
by smart display solutions. Surveys show that consumers no
longer range the price level as the most important factor when
they decide where they want to do their shopping. Consumers
prioritise the “experience”, the cleanliness and orderliness of
the store, and that goods can be found easily. Heightening the
shopping experience has become an important challenge for
both the storeowners and brand manufacturers. Many
shopping decisions are made in the store, and in this situation
the display is of vital importance. The store must have an

organised and logic presentation of its product range and
simultaneously entice the customer to make impulse buys.
This contradiction presents a challenge which can be solved
with well-adapted merchandising systems which reinforce
the visual impression. To fulfi l these new requirements, HL
Display has developed the Optishop concept which facilitates
both order and stimulus. Furthermore, the actual work
carried out in the store is made easier through different technical
solutions.
HL Display’s merchandising systems have been successful
in several markets as the company can prove to its customers
that sales increase when they are used. HL Display suggests
its customers to measure how sales are infl uenced.
Europe is HL Display’s home market
The most important market for HL Display’s products is the
European food retail sector. HL Display has a strong position
in Europe and is currently supplying products and services
to nearly 90 per cent of the largest chains. Sales in Europe
accounted for 95 per cent of HL Display’s total net sales in
2000. In the global market, HL Display is currently serving 66
of the world’s 100 largest food retail chains. HL Display has
wide coverage through sales companies and distributors. The
largest single markets are France, Sweden and Great Britain.
Taking into account the current trends in the retail industry,
HL Display’s potential for continued growth must be
considered as very promising.
Customers
HL Display has several thousand customers all over the
world, principally in the food retail and non-food retail
industry. Major clients in this segment include Swedish
chains such as ICA and Konsum. An increasing number
of chains are expanding internationally and HL Display has
the opportunity of growing with them. A few examples of
this are Ahold, Boots, Carrefour and H&M. Brand manufacturers
looking to expose their products and strengthening
their brands is an increasingly important customer group for
HL Display. These companies include Coca-Cola, Nestlé,
Procter & Gamble and Unilever.
A great number of HL Display’s customers have been
customers for many years, despite substantial changes in
the industry. One reason for this loyalty is HL Display’s
ability to successfully help customers display their goods and
thereby increase sales in their stores. With the help of
HL Display and its unique knowledge and competence in
the fi eld of merchandising systems, a store can increase its
sales substantially. The pay back period for an investment
in one of HL Display’s products is normally no more than
six months.
HL DISPLAY'S POSITION
Competitors
With regard to Shop Fixtures, HL Display faces regional
competition principally from smaller companies. For some
products, however, Checkpoint Meto and VKF Renzel are
exceptions on an international level. Due to HL Display’s
international organisation, well-established trademark and
good customer relations, these competitors pose only a
minor threat.
The Optishop merchandising concept faces only
limited competition in Europe. This is attributable to the
fact that the concept creates a new market as HL
Display offers in-house developed
total solutions combined with an HL Displays current customer base
in Europe, retail food
increased knowledge content. In
this niche market HL Display has
90%
obtained a leading position. In the
US, on the other hand, there are a
number of companies that specialise
in merchandising, but none of them
has become truly established in the
European market.
The Shop System concept is only HL Displays current customer base
in the world, retail food
marketed in Sweden, where there
are a number of competitors that
66%
specialise in shop fi tting, such as Itab
and Hestra.
HL Display 2000
9

OPERATIONS – OPTISHOP
A new dimension in merchandising
A more rewarding shopping experience has become the focus of retailers and brand manufacturers alike.
It is all about stimulating the desire to buy and making the customer return.
10 HL Display 2000
HL Display’s customers can increase sales by a carefully
prepared and tailor-made merchandising. It is in the store
that customers fi nally decide if they are buying a certain
product. Therefore, the packaging and display of the product
is very important. Sales are increased by following up commercials
and advertisements by a good display which sends
out the right signals at the time a purchase is made. Besides
a logical structure and a clear presentation of the product
range, the store environment should also stimulate the customers
to make impulse buys. This contradiction presents
a challenge which can be solved with well-adapted merchandising
systems which enhances the visual impression of the
product. This is where Optishop comes into the picture.
Supports category management
The Optishop concept conforms to the increased focus
on category solutions which the retail industry currently
requests. Retailers and brand manufacturers are cooperating
more closely on how to display different product categories.
These categories include con-
Products within Optishop
fectionery, baby food, hair care
products etc.
Each category in a store has
its specifi c quality and character
(the design of the packaging
etc.). Over the years, HL Display
has gained a broad and in-depth
knowledge of which solutions
are most effi cient for a specifi c
category. HL Display has
developed different high-quality
solutions for different categories which successfully handle
intensive use in the store. This also entails that the
service content of HL Display’s offer is increasing.
Another aim with the Optishop concept is to help
retail chains create and maintain uniform store
concepts.
TM concept
Optimal Modular shelf management
system with dividers, back supports
and automatic feeding.
Optishelf Extendable shelf to optimise
shelfspace and facilitate
re-merchandising.
Optisign Cost-effective sign systems
to carry graphics and product
information.
Optistand Affordable fl oor stands
with great design – easily
assembled without tools.
Optitrack Modular shelving system for
shop-in-shop solutions.
Effi cient display
www.hl-display.com
Apart from the display itself, Optishop also addresses
several customer problems, such as simple and swift
re-merchandising. Ingenious accessories move products
automatically forward which gives a positive impression of
well-stocked shelves. The store area represents large expenditures.
Because of this, it is important to utilise each square
metre in the best possible way. Moreover, each year, an
additional 15 per cent of new products arrive which have to
be accommodated. Optishop plays a vital part to ensure
that the sales surface utilisation is maximised by effi cient
shelf management.
HL Display develops and offers entire concepts and systems.
The system solutions are made up of building blocks
and modules from HL Display’s basic product range. These
standard products are adapted according to customer requirements
and complemented with different communication
solutions.
Market
The most developed market for merchandising systems is
the US where several companies specialise in these systems.
Europe has at present no direct equivalent.
HL Display’s sales of merchandising systems is most
developed in France where both chains and brand manufacturers
use the Optishop system.
There are development opportunities both by moving
into other markets and by working with other customers.
Customers, including large and leading retail chains and
brand manufacturers, are increasingly active on a global
scale. They require partners that can offer quality products
and guaranteed service from one and the same supplier in all
countries where they operate.

Optishop – Optimisation of shelf space
Slimline is an innovation from HL Display. It is a new
generation of datastrip which improves utilisation
of available space and facilitates price and product
information.
OPERATIONS – OPTISHOP
HL Display 2000
11

OPERATIONS – OPTISHOP – CASE
The new generation of hypermarkets
The Auchan hypermarket in Val d’Europe outside Paris was inaugurated on 25 October.
It is the new generation of hypermarkets and HL Display was involved in its development.
12 HL Display 2000
Val d’Europe is located outside Paris not far from Euro-
Disney. It is a new spectacular shopping centre which has
been inspired by glass and metal constructions dating from
the end of the 19th century.
This modern facility offers a complete range of the latest
in shopping technology. Many ultra-modern solutions are
found under one roof. Accessibility, natural light, airiness,
greenery, space for service and children have all been catchwords
during the development and construction of the shopping
complex in Val d’Europe. The shopping experience and
service were given priority.
A new generation of shops
Auchan is one of Europe’s leading retail companies with
net sales of more than FRF 80 billion. The Auchan group
employs 119,000 people in just over 740 hypermarkets in
12 countries.
The Auchan hypermarket is the main attraction of the
shopping centre in Val d’Europe. The extensive two-storey
complex took two years to complete. Auchan alone has made
investments of just over FRF 2 billion in the new hypermarket.
Auchan, which focuses greatly on becoming a market
leader, prioritised new and innovative solutions and opted
for cooperation with partners who could meet such requirements.
This hypermarket is the fi rst of its kind with all the
latest technology employed within shopping and product presentation.
It represents an entirely new generation of shops
– shops for the new millennium. HL Display in France has
been a supplier of Auchan for 10 years. The new and innovative
systems for merchandising, price and product information
which were launched by HL Display in 2000, were
major contributory factors in HL Display becoming a key
supplier to the Val d’Europe establishment.
Careful testing
Construction work for the store itself commenced eight
months before it was opened on 25 October 2000. All products
used in Val d’Europe were fi rst discussed and evaluated
together with the people responsible for different categories
at Auchan (Fruit & Vegetables, Baby Food, Confectionery,
www.hl-display.com
Hair Care etc.). The different solutions were afterwards
tested in an internal test centre at Auchan. Following
the evaluation, price negotiation and modifi cations, each
category was approved individually. HL Display has come
up with several different solutions from the Optishop
concept, such as shelves with a gravity solution, extendable
shelves that optimise all shelving space and make
re-merchandising easier (Optishelf), modular shelf
managment systems with dividers, back supports and
automatic feeding systems (Optimal). Half of the shop is
equipped with HL Display’s latest datastrip called Slimline,
while the other half was equipped with electronic labels for
which HL Display provided the holders.
HL Display took care of the installation process in the
shop. Within three weeks, HL Display staff assembled one
category after another. Prior to delivery, a thorough quality
and functionality check of all units was carried out.
Valuable partnership
After the opening of the Auchan complex in Val d’Europe,
work has continued with the fi ne-tuning and training of
staff. Subsequently, a follow-up and evaluation of each category
will take place to establish if there is room for further
improvements.
The partnership with Auchan is of considerable value to
HL Display as it entails constant development for both partners
resulting in new knowledge. The complex in Val d’Europe
served as a testing ground for Auchan during the evaluation
of the Optishop concept. Auchan is pleased with the results
and the majority of units from the Optishop concept will be
integrated in all hypermarkets under construction and in all other
hypermarkets undergoing refurbishment. The fi rst hypermarket
after Val d’Europe will be Auchan in Châteauroux due to open
at the beginning of 2001.

Optishop – Optimisation of shelf space
The employees at Auchan
in Val dÉurope, is very
content with Optishop TM
and the smart and timesaving
solutions.
OPERATIONS – OPTISHOP – CASE
HL Display 2000
13

OPERATIONS – SHOP FIXTURES
Clear store information
increases sales
One key factor for retail sales is to display prices close to the goods.
All HL Display products are developed to facilitate this.
Shop Fixtures – for price information
14 HL Display 2000
Well-displayed products and clear signs with pricing and
product information, which are close to the products, is a
basic requirement for the retail sector. Failure to provide
information can result in lost sales as the customer is unable
to locate the correct price for the merchandise.
Shop Fixtures
Datastrips: More than 350 profi les for different shelves meet
most retail requirements.
HeLec: Datastrips for different electronic labels found in
the market.
Freezer system: Price and product information for open freezers
that are easy to use.
Pinpac: Display hooks and price labelling for merchandise
on hooks.
Price cassettes: Cassette systems facilitate quick alteration
and exchange of pricing and product information
within the fruit & vegetables and delicatessen sections.
Frame system: Plastic display frames enhance the message
in a direct yet effective manner.
www.hl-display.com
Logical structure
Several studies have shown that customers no longer rank the
price as the most important factor when deciding where to
shop. Instead, other factors, such as a clean shop environment,
orderliness, and fi nding the merchandise easily rank high on
the customer’s priority list. A shop should offer its product
range in an organised and logical fashion while, at the same
time, entice the customer to impulsive buying. Products from
the Shop Fixture concept constitute a complete basic range
for pricing and product information. HL Display may still
be best known for its datastrips, which continue to be the
single largest product. However, HL Display offers several
other products and the basic range comprises more than
2,000 different products. These products can be combined
into various total solutions. Within Shop Fixtures there are
also a number of solutions which communicate offers and
sales messages to the consumer.
Constant development
The Shop Fixture range is constantly being developed. Last
year, HL Display launched a completely new concept in
the fi eld of price labelling, called Slimline. The concept
can be regarded as a new generation of datastrips but also
strengthens the utilisation of the available store space, in line
with the idea behind the Optishop concept.
Pictoria: Metal pavement stands and metal wall frames for
outdoor communication.
Sky-Line: Ceiling displays. Everything from aluminium bars
and glass fi bre-strengthened plastic connections to
anti-glare poster holders.
Information A complete range for brochure display.
holders:
Jegab: Holders for signs and sales messages in the
form of hooks, pegs, fl ags, mobiles, rivets and
connections.
Shelftalkers: Range of promotional signs and special
customer-adapted shelftalkers with or
without screen-printing.

Total supplier
Over the years, HL Display has developed an extensive knowledge of merchandising and how a store
should be laid out. An inviting and inspiring atmosphere with a clear structure and effective shop
space are all success factors for any store.
Shop Systems – total store concept
The major chains are streamlining purchases and they are
increasingly looking to work with fewer suppliers. Through
HL Display’s Shop System concept, customers can acquire
entire shop fi ttings from just one supplier. Just over 50 per cent
of all of HL Display’s offers are based on its own standard
range while other fi ttings, such as lighting and checkouts,
are purchased externally. HL Display is in charge of project
management and installation. This means that the customers
can obtain everything from one supplier, namely HL Display.
A natural partner
The Shop System concept enables HL Display to enter the
customer project at an earlier stage which increases the opportunity
to sell other concepts. By constructing entire shops, HL
Display becomes a natural partner in many issues from layout
and display systems to individual products.
Shop Systems
All types of shop fi ttings in metal, plastic or wood.
Own design, construction and manufacture.
Lighting for best possible display.
In-house fi tting teams for guaranteed delivery and assembly.
Special competence
Many customers often have own
ideas about the design of their
store and how the goods should
be displayed. HL Display makes
customised fi ttings according to
customers’ requirements based on
a standard frame. This results
in store systems that offer both
functionality and shopping experience. With the help of
computer animated plans, the customer can in advance see how
the solutions will be realised. Through the Shop System concept
HL Display has been able to develop a design competence
which enables us to manage a project from its conception
through to its implementation.
Market
The concept offers a great potential but pricing competition
is tougher than for any other concept. Today a number of
companies specialise in the construction of shops. In addition,
HL Display can offer more detailed solutions within
specifi c categories, such as baby food, hair care products,
confectionery etc. At present, HL Display delivers entire
shop fi ttings only to the Swedish market.
OPERATIONS SHOP SYSTEMS
HL Display 2000
15

MARKET
Fast expansion in new markets
Today HL Display is represented in 31 countries through its own sales companies or via its distributors.
16 HL Display 2000
Thanks to internationalisation the company has a very broad
coverage in Europe through its own sales companies and
distributors with growth potential. Future expansion into
new markets will primarily be carried out by setting up
subsidiaries to ensure the highest possible focus on new
markets. HL Display maintains a high rate of expansion,
having over the last three years set up subsidiaries in seven
new markets. In 2000 the company opened sales companies
in two new markets, namely Singapore and Ukraine.
HL Display’s distributors are largely using the same
working methods and ideas used by our own sales companies.
Development in the distribution markets was very
positive during 2000.
The European food retail sector is the most important
market for HL Display.
Sales in Europe accounted for 95 per cent of
HL Display’s total net sales in 2000. HL Display’ largest
markets are France, Sweden and Great Britain.
Sweden
MD Tomas Thorslund
Established in . . . . . . . . . . . . . . . 1982
94
118
Number of employees . . . . . . . . . . . 43
Net sales 2000 (SEK M) . . . . . 121,5
51 54 58
68
Increase in net sales 2000 (%) . . . . 3 94 95 96 97 98 99 00
122
Benelux countries
MD Leo van Hoek
Established in . . . . . . . . . . . . . . . 1987
Number of employees . . . . . . . . . . . 47
Net sales 2000 (SEK M) . . . . . . 72,2
RLÄNDERNA
SEK M
Increase in net sales 2000 (%) . . . 15 94 95 96 97 98 99 00
Great Britain
MD Alex Robertson
Established in . . . . . . . . . . . . . . . 1987
97
116
Number of employees . . . . . . . . . . . 81
Net sales 2000 (SEK M) . . . . . 132,9
36 41 47
63
Increase in net sales 2000 (%) . . . 15 94 95 96 97 98 99 00
133
Germany
SEK M
25
SEK M
SEK M
MD Marcus Diwo
Established in . . . . . . . . . . . . . . . 1989
ANumber of employees . . . . . . . . . 29
Net sales 2000 (SEK M) . . . . . . 83,1
30
37
44
52
80 85 83
Increase in net sales 2000 (%) . . . – 2 94 95 96 97 98 99 00
31
33
38
46
56
72
Western Europe
HL Display has attained a very strong position in Western
Europe with a high market penetration and a signifi cant
share of the market for a number of products. The Western
European market is mature and market players place great
demands on innovation, quality and a high degree of conceptual
selling.
In line with this, the sales organisations have been
strengthened and developed further with the focus on Key
Account Management and project sales.
Most sales companies have experienced continued strong
growth. The French market, where sales of merchandising systems
is most developed, remains HL Display’s largest market
in terms of net sales, followed by Sweden and Great Britain.
The sales companies in Austria and Switzerland saw very
positive development during 2000. These companies have
a broad customer base which is a stable foundation for
continued growth.
KRIKE
France
MD Gérard Dubuy
Established in . . . . . . . . . . . . . . . 1990
Number of employees . . . . . . . . . . . 55
Net sales 2000 (SEK M) . . . . . 167,0
Increase in net sales 2000 (%) . . . 18
Norway
SEK M
47
94
SEK M
54 62
95
96
94
97
125 147
167
MD Ketil Torp
35
33
Established in . . . . . . . . . . . . . . . 1990
24
26
Number of employees . . . . . . . . . . . 16
Net sales 2000 (SEK M) . . . . . . 25,9
13 16
17
Increase in net sales 2000 (%) . . . -21 94 95 96 97 98 99 00
TZ
Switzerland
MD Peter Moser
Established in . . . . . . . . . . . . . . . 1998
Number of employees . . . . . . . . . . . . 7
Net sales 2000 (SEK M) . . . . . . 19,6
Increase in net sales 2000 (%) . . . 57
Austria
94
95
96
97
98
5
98
99
13
99
00
SEK M 20
SEK M
MD Günther Bucher
34
Established in . . . . . . . . . . . . . . . 1996
25
Number of employees . . . . . . . . . . . 15
Net sales 2000 (SEK M) . . . . . . 33,8
8
13
18
Increase in net sales 2000 (%) . . . 33 94 95 96 97 98 99 00
00

In Norway and Germany, sales have not lived up to expectations.
A number of actions have been taken and these are
expected to produce results during the current year.
Eastern Europe
In some Eastern European countries the food retail sector
has seen an explosive development as a result of the fast
expansion by retail chains from Western Europe. HL Display
benefi ts from this and can utilise the already established
contacts.
During the year the Russian market recovered which
resulted in a large demand for HL Display products. Sales
development has been very positive and a platform for continued
expansion has been established.
The Latvian market also saw a positive development in
2000. The brand manufacturer segment dominates sales, but
an increasing number of foreign investments in the retail sector
increased the demand for HL Display’s more traditional
products.
In Hungary, HL Display has developed very positively.
This was due to a number of breakthroughs for the
Optishop concept for brand manufacturers, among other
things.
Poland
MD Anders Kollenstam
Established in . . . . . . . . . . . . . . . 1994
Number of employees . . . . . . . . . . . 24
Net sales 2000 (SEK M) . . . . . . 22,4
SEK M
22 22
16 17
9
6
Increase in net sales 2000 (%) . . . . 1
2
94 95 96 97 98 99 00
Czech Republic
SEK M
MD Petr Sindelár ˘ ˘
Established in . . . . . . . . . . . . . . . 1996
Number of employees . . . . . . . . . . . 15
6 6
9
10
Net sales 2000 (SEK M) . . . . . . 10,5
1
Increase in net sales 2000 (%) . . . 13 94 95 96 97 98 99 00
Hungary
SEK M
MD Timea Pestí
Established in . . . . . . . . . . . . . . . 1998
11
Number of employees . . . . . . . . . . . . 6
4
Net sales 2000 (SEK M) . . . . . . 11,3
1
Increase in net sales 2000 (%) . . 171 94 95 96 97 98 99 00
Ukraine has over 50 million inhabitants and is regarded as
a market with a large potential in the long-term. Here, most
of the largest multinational brand manufacturers are already
active and make up the primary target group.
North and South America
In the US HL Display primarily sells products through the
Shop Fixture concept. Manufacture and sales are carried out
in cooperation with Trion Industries Inc. Sales in the US
rose during the year by 21 per cent. The South American
market is currently being worked on by HL Display’s Spanish
distributor.
Asia
Last year, a sales company was opened in Singapore which
initially will be responsible for sales in large parts of South-
East Asia. The customers include several larger European
chains such as Auchan, Carrefour and Makro. Even though
sales in Asia are still moderate, HL Display’s future development
potential has to be described as excellent.
Latvia
MD Jana Rubina
Established in . . . . . . . . . . . . . . . 1999
Number of employees . . . . . . . . . . . 11
Net sales 2000 (SEK M) . . . . . . . . 5,5
Increase in net sales 2000 (%) . . . 77
SLAND
Turkey
MD Erdogan Yildis
Established in . . . . . . . . . . . . . . . 1999
Number of employees . . . . . . . . . . . . 5
Net sales 2000 (SEK M) . . . . . . . . 3,4
Increase in net sales 2000 (%) . . . . . –
Russia
MD Zilvinas Petrauskas
Established in . . . . . . . . . . . . . . . 1999
Number of employees . . . . . . . . . . . . 4
Net sales 2000 (SEK M) . . . . . . . . 8,1
Increase in net sales 2000 (%) 1 314
SEK M
94
SEK M
94
SEK M
94
95
95
95
96
96
96
97
97
97
98
98
98
99
3
99
1
99
3
00
6
00
8
00
HL Display 2000
MARKET
17

PRODUCTION AND ENVIRONMENT
Focus on development and design
For many years, HL Display’s product range has been developed in close cooperation with customers. To remain a
leading display and mechandising company and to fi nd new innovative solutions, HL Display is increasing its focus
on development and design.
18 HL Display 2000
HL Display has developed its product range by building
on its long-standing experience from the shop fl oor and its
expertise in the fi eld of display and merchandising. The
development of new products is mainly a customer-driven
process. To remain one of the leading display and merchandising
companies, HL Display is increasing its focus on
development and design. It is vital for HL Display to remain
at the forefront of developments to strengthen the company’s
competitiveness in international markets.
Last year, HL Display dedicated more resources to
develop general products to complement many of the
customer-driven projects undertaken. The aim is to
make use of ideas about
new products which are
generated in various places
in the organisation. For this
purpose, the organisation
has been strengthened and
development processes
which ensure shorter lead
times have been set up.
In 2000 development costs
amounted to 3.1 per cent
of net sales, and this share
is set to increase gradually
over the next few years.
The company has
purpose-built production
facilities with modern
equipment in seven
locations. HL Display
continues to invest to make
production more effi cient
and last year investments of
SEK 49.1 M were made
in new production capacity.
Major investments in new
machinery included new
extruding lines as well
as new injection moulding
machines, together with portal robots for picking up and
packaging goods.
Managing its own production was and remains a success
factor for HL Display. Long-term investments in staff, facilities
and machinery have enabled HL Display to obtain effi -
cient production at all plants. Today, the company has four
production plants in Sweden, in Sundsvall, Falun, Falkenberg
and Lesjöfors. Some production also takes place in Great
Britain and in the Netherlands to serve local markets. The
company also has production facilities in the US through a
joint venture.
HL Display uses several different production techniques.
These are extruding, injection moulding, screen printing,
vacuum forming, heat- and cold-bending of plastics, as well
as metal plate and wire processing.
Plastic extrusion is one of the areas where the company
has expertise and unique knowledge. HL Display has
extensive experience and high competence in this fi eld.
Datastrip is the largest product group which is extruded.
In HL Display’s Sundsvall plant, more than 350 different
profi les in over 300 different colours are currently manufactured.
More than 40 million metres of datastrips are produced
every year.
In Sundsvall HL Display also operates injection moulding.
At this plant a number of different products, including
shelf dividers and frame systems are manufactured. All production
in Sundsvall is based on customer orders which
minimises the need for stock keeping.
Screen printing, vacuum forming and heat- and coldbending
of plastics is carried out at the Falun plant. Products
manufactured in Falun include shelftalkers as well as fl oor
displays and sales racks. An effi cient production process
which combines screen printing and heat- and cold-bending,
enables customised products and short delivery times.
Bending and welding of wire products, such as sales and
display racks is carried out at HL Display’s Lesjöfors plant.
Plate and piping products are manufactured in Falkenberg.
The most important products are complete shelving systems
for the retail industry which have been developed in-house
by HL Display.

Each deal is a reference for the next deal
To remain a competitive company in the international market,
HL Display must ensure that customer requirements
on service, quality, lead times and delivery deadlines are
met. To fulfi l customers’ expectations, a quality policy has
been prepared. In brief, the policy states that all products
manufactured and delivered must be of such quality that
they completely satisfy the customer. It states further that
it is the duty of every co-worker to ensure that a high
level of service is maintained and that quality issues are
always prioritised. Any defects in raw materials, processes,
procedures and control equipment is to be observed and
attended to without delay.
Key quality targets include a punctuality rate of at least
96 per cent of all deliveries, the number of complaints is
not to exceed 0.8 per cent and production accessibility is
to reach a minimum of 93 per cent. HL Display’s efforts
to ensure quality are continuously developed and reimaning
plants will be ISO 9001 certifi ed for quality standards. The
product range is developed on an on-going basis in close
cooperation with suppliers and customers.
Environment
It is vital for HL Display to fulfi l customer requirements
with regard to environmentally friendly products. For a number
of years, the company has been engaged intensively
in environmental issues and an environmental policy has
been drawn up. In brief, the policy stipulates that the
company should endeavour to minimise the environmental
Sundsvall
MD Hans Olsson
Number of staff: 240
Production: Extrusion and injection moulding.
Other: The plant is ISO 9001 and ISO 14001 certifi ed.
Lesjöfors
MD Marita Larsson
Number of staff: 65
Production: Metal wire products.
Environmental policy
HL Display will work to minimise impact on the environment and
contribute to a better living environment.
HL Display will make decisions based on weighing up what is
ecologically motivated, technically possible and fi nancially viable.
impact from its activities and contribute to a better environment.
Consequently, HL Display is actively working towards
reducing the amount of waste from production and selecting
materials and products which affect the environment as little
as possible. The environmental impact is an aspect which is
considered during the decision-making process. For instance,
investment decisions are made by judging whether an alternative
is ecologically motivated, technically possible and
fi nancially reasonable. In the purchasing process, products
and services which have less impact on the environment are
preferred to equivalent alternatives.
The most important environmental targets are to reduce
wastage, and to increase re-cycling of waste materials. This
environmental policy is to be an integrated part of the
company.
During the past years HL Display has been working
towards increasing the use of alternative materials instead
of PVC.
HL Display’s plants in Sundsvall and Falun are
ISO 14001 certifi ed for environmental standards.
Falun
MD Mikael Lindell
Number of staff: 72
Production: Screen printing, heat- and cold-bending.
Other: The plant is ISO 14001 certifi ed.
Falkenberg
MD Roger Nilsson
Number of staff: 42
Production: Plate and piping products.
PRODUCTION AND ENVIRONMENT
HL Display 2000
19

EMPLOYEES
A strong and well-defi ned
company culture
One of HL Display’s most important challenges is to recruit and retain skilled and qualifi ed staff.
Knowledge and competence is vital if the company is to defend its leading position.
20 HL Display 2000
HL Display is growing fast through expansion into new
markets and currently employ just over 800 people in 17
countries. To ensure continued growth, HL Display devotes
great care to recruit and retain staff who possess the will and
ability to continuous learning and development.
To train new members of staff in the best possible way
HL Display has prepared induction programmes which are
adapted to each individual. All recently employed staff are
given the same basic knowledge but also an introduction
which is tailored to each position.
Entrepreneurial spirit
Profi tability and success are achieved through co-workers
who feel they are a part of the company, by supportive
management and operations which are characterised by trust,
a will to change and an ability to take advantage of all
opportunities. HL Display’s human resource concept has
been developed in line with its entrepreneurial spirit and is
mainly based on participation, lateral decision-making and
few hierarchic levels.
A decentralised organisation must be based on a clear
and fi rmly established company culture. This will minimise
bureaucracy, facilitate inter-company relations and the ability
to take action. Today, HL Display’s customers and co-workers
live and work in many different countries and belong to different
cultures. It is a challenge for management and co-workers
alike to show respect and to communicate clearly. Openness
at all levels within the company is important and facilitates
the delegation of responsibility. All this is fundamental
to HL Display’s company culture. Last year HL Display
launched an initiative to clearly set out the company’s values.
It is an important task to consolidate a common approach
which can be communicated to all new members of staff. HL
Display’s strategy and vision gives the company a collective
force which strengthens the company culture further.
Ensuring growth by developing competence
HL Display works together with a great variety of professional
customers with high standards. This creates a strong incentive
to develop the company’s competence and offer, as it is the
company’s ambition to be regarded as the leading supplier.
The second decisive factor when investing in competence
development is HL Display’s desire to retain long-term relations
with all members of staff and all our customers.
HL Display’s ambition is continued growth in a rapidly
changing business environment. The will and ability of the
organisation and staff to change is becoming increasingly
important, especially in HL Display’s production facilities.
Consequently, HL Display is working systematically to offer
production staff opportunities to broaden their skills and to
increase their ability to change.

Tomorrow’s leader
HL Display endeavours to increase the number of managers
that are recruited internally. To facilitate this, systematic
efforts are being made to improve the prerequisites for
smooth internal recruitment of managers. HL Display is
recruiting staff which have the potential and ambitions to
pursue a career in the company. For this reason, comprehensive
efforts to set out clearly the career and development
paths offered within the group have been instigated.
Key staff in different Group companies are offered a socalled
International Training Assignment. This is a customised
programme where a co-worker, for a period of three
months, participates in a development programme in another
Group company in order to gain specifi c skills. HL Display
is encouraging staff to apply for different positions in the
Group and has set up an internal recruitment site on the
company’s intranet. To further stimulate the movement of
staff between companies and countries, a policy for overseas
assignments has been devised.
Competitive terms of employment
Retaining key competence within the company is a vital task.
HL Display must be able to offer members of staff competitive
terms of employment and appropriate remuneration. To
provide motivation and stimulus, HL Display introduced “the
HL Award”, offering employees in all countries the opportunity
to apply for an award for further training in subjects
relating to their work.
Several key staff in the group currently hold shares in the
company and the management encourages more employees
Employee categories 2000
Product development, 5.1%
Stock, 5.2%
Admin. and
Management,
13.7%
Sales &
Marketing, 29.4%
Production,
46.6%
Number of employees, average
800
600
400
200
0
of staff to buy a stake in the company, either by directly
buying shares or indirectly through a shareholders’
association.
In 2000 HL Display employed an average of 773 (706)
staff. The total number of staff employed by the group on
31 December 2000 was 805 (713).
31 per cent of the company’s staff are women and 69
per cent are men. 29 per cent work in sales and marketing,
52 per cent work in production and warehouse and others
with management, administration and product development.
40 per cent of the white-collar workers have university
degrees. 61 per cent of the staff are employed in Sweden.
The average age of staff in the group is 35 (35). Value added
per employee amounted to SEK 406 T (423) in 2000.
Value added per employee
SEK T
500
400
300
200
100
0
96
97
98
99
00
EMPLOYEES
HL Display 2000
21

RISK AND SENSITIVITY ANALYSIS
Risk and sensitivity analysis
HL Display are described to a low operating and fi nancial risk. Below a number of
factors are described which could affect the valuation of the company.
22 HL Display 2000
Income
The lead-time for HL Display’s orders is very short, normally
less than two weeks. Such a high level of service gives the
company a competitive edge, but it also makes it diffi cult
to plan and re-dimension operations when unexpected fl uctuations
of demand occurs. The order book contains, at any
given time, over a thousand orders, the majority with limited
order value, from customers in different geographical markets.
Consequently, the market risk is well spread.
Variances attributed to business cycles and season are,
however, not offset, since our customers mainly operate in
the same industry, the retail trade. However, a signifi cant part
of our sales is non-cyclical; price and product information
is a fundamental condition for a well-functioning store. It is
forecast that merchandising projects will generate an increasing
part of the company’s net sales in the future, which will
lead to a larger dependency on business cycles in the long
term.
Around 40 per cent of the Group’s costs do not fl uctuate
in line with net sales. This means that if sales increase or fall
by one per cent, the profi t will be affected by 8.5 per cent.
Credit risk
Historically, HL Display has had very low bad debt losses.
The company’s customers are major and well-established
companies with high solvency. The largest single customer
only accounts for two per cent of HL Display’s net sales.
Raw material price-changes
Different plastic raw materials represent 66 per cent of the
Group’s raw material purchases. The price fetched by these
plastics is governed by supply and demand in the world
market. The most common raw material, PVC, accounts for
15.8 per cent of the costs for goods sold. If the purchase
price for PVC increases by one per cent, pre-tax profi ts will
decrease by SEK 0.8 M, or 1.8 per cent. The price of PVC
(compound) on the world market is not infl uenced by the
world market price for crude oil. Last year, the fast price
increase of PVC, which reached its highest price since
1998 in May, resulted in considerable additional costs for
HL Display. Customer agreements are normally re-negotiated
once a year, and price-change clauses for fl uctuation in the
raw material market are a rare occurrence in the industry.
Therefore, it has not been possible to pass on this price
increase. Instead it resulted in a decrease in Group profi ts of
around SEK 8.6 M. Since July 2000, however, prices have
been falling and in January 2001 reached the level of their
previous peak of January 1998.
There is a risk of limited supply which could cause prices
to increase also for other important plastics raw material.
To reduce the company’s sensitivity to raw material prices,
HL Display is developing methods to use alternative materials
in its basic product range and these efforts have been successful.
In this way, the risk can be transformed to an opportunity
which gives the company competitive advantages.
Salary costs
Salaries and salary-related costs represent HL Display’s
largest single overhead. Had salaries increased by one per
cent in 2000, the company’s profi ts would have fallen by
SEK 2.4 M, or 5.5 per cent.
Flow exposure
Flow exposure in foreign currency depends on invoicing and
purchasing in foreign currency as well as purchases where
the price is regulated by a currency clause. As HL Display’s
distributors are invoiced in Swedish kronor, around 70 per
cent of Group net sales were affected by currency fl uctuations
in 2000. 50 per cent of net sales is invoiced in currencies
tied to the Euro and 15 per cent in British pounds.
The currency outfl ow mainly comprises purchases of
materials, for which the price is regulated through a currency
clause. HL Display’s has at present no forward contracts.
Conversion exposure
When the foreign subsidiaries are consolidated into the
Group, sales are affected more than costs as production is
mainly located in Sweden, whereas the bulk of sales takes
place abroad. The Group’s income statement is also affected
in a more tangible way because HL Display, as one of few

Swedish listed companies, uses the MNM method. The difference
that arises upon translation of foreign subsidiaries’
income statements and balance sheets is then included in the
net interest income/expense instead of being taken directly
to equity. At present, HL Display does not practise any socalled
“equity hedging” to secure net assets.
Sensitivity analysis of currency
A translation of the fi nancial statements of 2000 into currency
levels recorded in the 1999 annual account shows that Group
net sales would have been 1.1 per cent higher. Cost of goods
sold would have been 1.3 per cent higher and pre-tax profi ts
0.5 per cent higher. A general currency change of the Euro
in the range of one per cent would cause Group net sales
to fl uctuate by 0.4 per cent, while cost of goods sold would
change by 0.5 per cent. Group pre-tax profi ts would change
by 1.0 per cent.
Interest sensitivity
A change of one percentage point in 2000 would have
caused profi ts to fall by SEK 0,9 M or around 2 per cent.
The introduction of the Euro
HL Display’s main markets are in the Eurozone. One subsidiary
has switched to using the Euro as its basic accounting
currency. International customers increasingly choose to use
the Euro as the currency for agreements, which increases the
risk of downward pressure on prices due to price transparency.
However, it is likely that customers in the retail industry
will prioritise an overhaul of the purchase of consumer
Average price of crude PVC
DEM
2,00
1,85
1,70
1,55
1,40
1,25
1,10
0,95
0,80
1996 1997 1998 1999 2000 2001
Source: Platt's Polymerscan
European Polymer Prices.
Average exchange rate of SEK/Euro
9.2
9.0
8.8
8.6
8.4
8.2
8.0
7.8
goods destined for retail, as these costs represent the main
part of their purchasing costs.
The introduction of the Euro is estimated to affect costs
for the purchase of goods and salaries to a very small extent.
HL Display’s purchases from the Eurozone countries were
previously tied to DEM.
The exposure of HL Display’s activities have foremost
been identifi ed as marginal effects in connection with the
translation of prices in local currencies to the Euro, as certain
products have a unit price of under one Swedish krona.
The effects of rounding off the price could affect the price by
between 10 and 20 per cent in connection with a translation.
This risk will be reduced by HL Display switching to pricing
per package for the products in question. A positive effect
of the introduction of the Euro is the simplifi cation of currency
management between the production units in Sweden
and customers and suppliers in the currency union. Currency
fl ows between the Euro companies can be utilised and
reduce the exposure to interest risk. Currency risks for
the smaller currencies currently tied to the Euro has been
reduced.
Effects of technical developments
HL Display’s position as the market leader in its niche was
obtained by offering groundbreaking product ideas which
subsequently developed into the market standard. Through a
close cooperation with customers and on-going investments
in product and production development, this area is one of
the company’s most vital strengths.
1999 2000 2001
Source: The Swedish central bank.
Raw materials 2000
Packaging
material, 3%
Aluminium, steel
and wire, 7%
Tape, 9%
Other
plastic raw
materials, 11%
Polycarbonate
(PC), 13%
Semi-manufactured
articles purchased, 15%
RISK AND SENSITIVITY ANALYSIS
PVC, 42%
HL Display 2000
23

BOARD OF DIRECTOR'S REPORT
Board of Director’s report
HL Display AB (publ) company reg.no. 556286-9957.
24 HL Display 2000
HL Display’s net sales in 2000 increased by 13.7 percent
to SEK 873.9 M, compared with SEK 768.5 M in 1999.
Profi t after fi nancial items amounted to SEK 44.1 M (47.1),
a decrease of 6.4 percent. The profi t margin was 5 percent
(6.1). The Board proposes a dividend of SEK 1.40 (1.30)
per share.
Market overview
Demand for HL Display’s products increased in virtually
all countries during the year. HL Display strengthened its
position through the launch of new products and concepts.
Development costs in 2000 totalled SEK 26.9 M (24.6).
Exports from Sweden rose by SEK 89 M and today account
for 84 (83) percent of the Group’s net sales. The food retail
trade is the customer segment that continues to dominate
sales. HL Display believes that growth will remain high and
will primarily take place organically, albeit being open to
opportunities of supplementary acquisitions. The emphasis is
expected to remain on Europe, although geographic expansion
is a key element of the business strategy. In Shop Fixtures
there is still considerable market potential, since only an estimated
two-thirds of the full potential in HL Display existing
markets has been penetrated. The greatest potential is seen
with Optishop, a merchandising concept, where many of
the company’s products are combined in a manner that is attractive
to the customers. The focus on Shop Systems, where
selected parts or entire store installations can be delivered,
will be limited to Sweden .
Structural changes
In 2000, HL Display established sales companies in
Singapore and Ukraine. In order to meet changes in the
market, HL Display continued work on the implementation
of a new organisation in 2000. This has, however taken
longer than anticipated.
Environment
For several years the company has conducted intensive environmental
work in all production facilities. The paintspraying
plants at Lesjöfors and Falkenberg have to
register according to Swedish Environmental laws, but are
not depending on permits.
Personnel
Average no of employees 2000 1999
Total 773 706
Sweden 475 458
Abroad 298 248
Women 236 216
Men 537 490
The average number of employees in HL Display increased
by 67 (124) in 2000. The number of employees at year-end
was 805 (713). The share of employees in Sweden was 61
(65) percent.
Parent company
The Parent Company has its registered offi ce in Stockholm
and its activities include Group management functions.
The Parent Company’s profi t after fi nancial items was
SEK 77.6 M (60.3).
Refund of premiums from SPP
For the fi nancial year 2000 HL Display recorded a refund
of pension premiums according to the ITP plan from the
insurance company SPP, totalling SEK 4.5 M.
Proposed disposition of earnings
The following earnings in the Parent Company are at the
disposal of the Annual General Meeting:
Retained profi t, SEK 27,142,750
Net profi t for the year, SEK 72,119,505
SEK 99,262,255
The board proposes:
dividend to the shareholders, SEK 10,764,421
to be carried forward, SEK 88,497,834
SEK 99,262,255
The Group’s unappropriated earnings amount to
SEK 155,625 T (137,846).

Income statement
Group Parent Company
SEK T per 31 December Note 2000 1999 2000 1999
Net sales 2, 3 873,921 768,451 44,121 29,556
Costs of goods/services sold – 494,366 – 415,643 – 42,899 – 34,777
Gross profi t 379,555 352,808 1,222 – 5,221
Selling expenses – 196,190 – 167,185 — —
Administrative expenses – 113,752 – 105,641 – 14,043 – 11,209
Development expenses – 26,902 – 24,581 — —
Other operating income 6,103 4,945
Other operating expenses – 1,083 – 1,066
Operating profi t/loss 4, 5, 6, 7 47,731 55,401 – 8,942 – 16,430
Results from participations in Group companies 8 — — 77,203 71,067
Results from other securities and receivables
accounted for as fi xed assets 9 540 – 3,300 9,159 6,090
Other interest income and similar items 10 3,230 670 2,184 521
Other interest expense and similar items 11 – 7,406 – 5,646 – 1,969 – 964
Result after fi nancial items 44,095 47,125 77,635 60,284
Appropriations 12 — — 7,131 – 4,229
Tax on profi t for the year 13 – 17,381 – 15,060 – 12,646 – 12,382
Minority 33 212 — —
NET PROFIT FOR THE YEAR 26,747 32,277 72,120 43,673
Comments to the Group income statement
The Group’s sales increased by 13.7 per
cent compared with 1999, which was considerably
lower than HL Display’s expectations.
Operating profi t fell by 13.8 per cent
from SEK 55.4 M to SEK 47.7 M. Funds
re-allocated from the insurance company
SPP have, in their entirety, been entered
into the books according to published
instructions and contributed positively to
profi ts for the fi nancial year by a total of
SEK 4.5 M.
Profi ts were reduced by SEK 8.6 M as
the price of PVC, the Group’s most commonly
used raw material, increased dramatically
compared with 1999.
HL Display’s net interest income/expense
was SEK – 3.6 M (– 8.3). The main explanation
item was the change in the translation
difference which is charged to the
income statement since the Group uses
the MNM method for translating foreign
subsidiaries’ income statements and balance
sheets. The translation difference in
2000 was SEK 0.1 M (– 3.8 ). Net interest
income/expense was negatively affected
as a result of increased net borrowing.
Profi t after fi nancial items declined by 6.4
per cent to SEK 44.1 M (47.1), which corresponds
to a profi t margin of 5.0 (6.1)
per cent.
Total currency effects boosted profi t be -
fore tax by 5.7 per cent or SEK 2.5 M
compared with 1999. The year’s profi t
amounted to SEK 26.8 M (32.3). The
Group’s tax rate rose from 32 per cent to
39 per cent. This was mainly due to the
non recurrent tax deductible items that
ocurred in 1999. Earnings per share after
full tax amounted to SEK 3.48 M (4.20).
INCOME STATEMENT
HL Display 2000
25

BALANCE SHEET
Balance sheet
26 HL Display 2000
Group Parent Company
SEK T per 31 December Note 2000 1999 2000 1999
ASSETS
Fixed assets
Intangible fi xed assets 14
Computer systems 13,414 9,456 6,563 5,233
Goodwill 6,957 9,753 — —
Total intangible fi xed assets 20,371 19,209 6,563 5,233
Tangible fi xed assets 15
Land and buildings 13, 214 12,997 — —
Plant and machinery 131,640 118,036 1,759 2,491
Capital expenditure on leasehold property 10,654 7,770 — —
Total tangible fi xed assets 155,508 138,803 1,759 2, 491
Financial fi xed assets 16
Participation in Group companies 17 — — 46,603 42,063
Participation in associated companies 18 10,000 10,000 12,851 11,851
Other long-term receivables 220 229 — —
Total fi nancial fi xed assets 10,220 10,229 59,454 53,914
Total fi xed assets 186,099 168,241 67,776 61,638
Current assets
Inventories 19 99,694 78,988 — —
Current receivables
Accounts receivable trade 149,894 137,645 58 9
Receivables from Group companies — — 121,147 103,294
Other receivables 20 19,730 9,749 6,948 2,168
Pre-paid expenses and accrued income 21 15,145 12,814 2,309 1,704
Total current receivables 184,769 160,208 130,462 107,175
Cash and bank 31,238 22,935 31 27
Total current assets 315,701 262,131 130,493 107,202
Total assets 501,800 430,372 198,269 168,840
Comments to the Group balance sheet
Total assets increased by SEK 71.4 M.
Fixed assets increased as a result of
investments. Working capital increased
due to increased net sales, while liquidity
improved as a result of borrowing. The
capital turnover rate remained unchanged,
1.88 (1.88) times.
Investments
Net investment in fi xed assets over the
period amounted to SEK 58.1 M (59.3)
and refers mainly to production equipment.
Another SEK 0 M (8.6) is attributable
to company acquisitions. The investments
include capitalised leasing contracts at
SEK 1.1 M. Depreciation according to plan
was SEK 40.2 M (31.3) for the period.
Inventories and accounts receivable
Inventories increased as per 31 December
by SEK 20.7 M to 11.4 (10.3) per cent of
net sales.
Accounts receivable as per 31 December
increased by SEK 12.2 M to 17.2 (17.9)
per cent of net sales. The average collection
period dropped from 54 days in 1999
to 52 days in 2000.

Group Parent Company
SEK T per 31 December Note 2000 1999 2000 1999
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity 22
Restricted equity
Share capital 38,444 38,444 38,444 38,444
Restricted reserves 44,850 45,878 7,689 7,689
Total restricted equity 83,294 84,322 46,133 46,133
Unrestricted equity
Unrestricted reserves 128,878 105,569 27,143 25,991
Net profi t for the year 26,747 32,277 72,120 43,673
Total unrestricted equity 155,625 137,846 99,263 69,664
Total shareholders’ equity 238,919 222,168 145,396 115,797
Minority share in equity — 33 — —
Untaxed reserves 23 — — 21,020 28,151
Provisions 24 16,997 14,051 2,940 2,940
Long-term liabilities 25
Bank overdraft facilities 26 8,778 17,713 3,322 10,921
Other liabilities to credit institutions 28 83,481 52,699 2,336 2,548
Other liabilities 1,468 762 — —
Total long-term liabilities 93,727 71,174 5,658 13,469
Short-term liabilities
Accounts payable trade 69,771 57,995 3,068 2,362
Liabilities to Group companies — — 16,120 1,196
Income tax liability 3,132 — — 1,067
Other liabilities 27,741 17,622 489 815
Accrued expenses and pre-paid income 27 51,513 47,329 3,578 3,043
Total current liabilities 152,157 122,946 23,255 8,483
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 501,800 430,372 198,269 168,840
Assets pledged 28 92,140 66,450 46,603 12,500
Contingent liabilities 29 16,220 2,086 27,107 8,425
HL Display continues to work to make its
warehouses more effective and to maintain
an effective credit monitoring with the aim
to reduce tied-up capital.
Shareholders’ Equity
HL Display’s shareholders’ equity as
per 31 December 2000 amounted to
SEK 238.9 M (222.2). Equity per share
amounted to SEK 31.07 (28.89). The
equity/assets ratio was 47.6 (51.6)
per cent.
Liabilities
Long-term liabilities increased by
SEK 22.6 M, of which SEK 0.9 M relates
to future payments for fi nancial leasing
contracts. Short-term liabilities increased
by SEK 29.2 M. The debt/equity ratio
rose to 0.39 (0.32) times. Interest-bearing
liabilities on 31 Dec ember amounted to
SEK 99.8 M (70.8).
BALANCE SHEET
HL Display 2000
27

CASH FLOW STATEMENT
Cash fl ow statement
28 HL Display 2000
Group Parent Company
SEK T per 31 December Note 2000 1999 2000 1999
OPERATION ACTIVITIES
Operating profi t/loss 47,731 55,401 – 8,942 – 16,430
Depreciation 40,197 31,255 2,709 1,787
Other items not effecting the cash fl ow 1,090 – 4,598 — – 3,292
Dividends and Group contribution received — — 59,993 72,520
Interest received 1,530 1,425 9,608 6,192
Interest paid – 7,550 – 4,923 – 2,118 – 868
Income tax paid – 11,471 – 29,007 – 4,877 – 8,065
Cash fl ow before change in working capital 71,527 49,553 56,373 51,844
Increase (–) / decrease (+) in inventories – 20,706 – 13,524 — —
Increase (–) / decrease (+) in accounts receivables – 12,249 – 21,811 – 49 4
Increase (–) / decrease (+) in other shot-term receivables – 13,675 17,568 – 47,808 –35,073
Increase (+) / decrease (–) accounts payable 11,776 13,431 706 –2,784
Increase (+) / decrease (–) other current operating liabilities 14,206 2,077 15,282 – 6,258
Total cash fl ow from operating activities 50,879 47,294 24,504 7,733
INVESTMENT ACTIVITIES
Net investments in intangible fi xed assets – 7,830 – 8,785 – 3,096 – 4,123
Net investments in tangible fi xed assets – 50,723 – 40,324 – 211 – 808
Investments in Group companies 34, 35 — – 8,259 – 5,540 – 24,927
Disposal of other fi nancial fi xed assets 10 1 — 13,900
Cash fl ow from investment activities – 58,543 – 57,367 – 8,847 – 15,958
FINANCING ACTIVITIES
Loans raised 41,830 12,999 — 10,921
Amortisation – 16,538 – 7,626 – 5,657 – 213
Dividend paid – 9,996 – 9,996 – 9,996 – 9,996
Cash fl ow from fi nancing activities 15,296 – 4,623 – 15,653 712
The year’s cash fl ow 7,632 – 14,696 4 – 7,513
Liquid assets at the beginning of the year 22,935 38,701 27 7,540
Exchange rate difference on liquid assets 671 – 1,070 — —
Liquid assets at the end of the year 36 31,238 22,935 31 27
Comments to the Group cash fl ow statement
Cash fl ow in the Group for 2000 was SEK
7,6 (– 14.7) M. The reason for the slightly
positive fl ow is mainly an increase in
borrowing.
Capital tied up in working capital also
increased because of the large increase
in net sales. Since HL Display has
its production, and therefore most of
its accounts payable, in Sweden, and
the bulk of its sales outside Sweden,
accounts receivable increased more than
accounts payable. This is due to the fact
that HL Display has a longer credit period
for accounts receivable in the foreign
subsidiaries that on accounts payable in
the Swedish companies. Of the accounts
receivable, 21 per cent are in the Swedish
companies and 79 per cent in the foreign,
while 71 per cent of accounts payable in
Sweden and 29 per cent abroad.
Investments of SEK 1.1 M were fi nanced
via so-called fi nancial leasing. These
assets have been included in the balance
sheet, but in accordance with recommendations,
are not reported as investments
in the cash fl ow statement but for the
leasing fees paid.

Notes
NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES
HL Display AB’s accounting and valuation principles are in compliance
with the recommendations of the Swedish Financial
Accounting Standards Council. Unless otherwise stated, these
principles are unchanged compared with last year.
Consolidated fi nancial statements
Swedish Financial Accounting Standards Council’s recommendation
No. 1 for consolidated fi nancial statements was applied.
Group accounts are prepared according to the purchase method.
The Group’s annual accounts include the parent company
HL Display AB (publ) and those companies in which the parent
company controls more than 50 per cent of the votes.
Swedish Financial Accounting Standards Council’s recommendation
no. 8 is applied for translation of foreign subsidiaries. According to
the defi nition in the recommendation, the subsidiaries are integrated
and translated according to the MNM (Monetary/Non-monetary)
method. Monetary items in the subsidiaries’ balance sheets are
translated to the closing day exchange rate, while non-monetary
items are translated at the investment date exchange rate. In the
income statement, depreciation is calculated at the investment
date exchange rate and other items at the year’s average exchange
rate. Costs for goods sold are translated to the average exchange
rate since turnover is high. The translation difference is included in
the income statement, under fi nancial items.
Associated companies
Associated companies are reported as companies that are not
subsidiaries but where the parent company directly or indirectly
controls at least 20 per cent of the votes. In the Group’s
joint ventures, where major decisions are made mutually by
the owners and where contracts regulate decision-making, the
proportional method is used. The reason for this is that partowners
control their share of future profi t via their share of the
joint-owned company’s assets and debts.
Reporting of Group contributions
HL Display applies the Swedish Financial Accounting Standards
Council’s statement on reporting of Group contributions and
shareholders’ contributions.
Cash fl ow statement
The cash-fl ow statement was prepared on the basis of Swedish
Financial Accounting Standards Council’s recommendation no. 7
with application of the indirect method.
Receivables
Receivables are valued at the amount which is expected to be
received, after individual assessment.
Receivables and liabilities in foreign currency
Receivables and liabilities in foreign currency are valued at closing
day exchange rates in accordance with Swedish Financial
Accounting Standards Council’s recommendation no. 8.
Inventories
Inventories are valued at the lower of cost and market value.
Swedish Financial Accounting Standards Council’s recommendation
no. 2 for reporting of inventories is applied. In-house
manufactured goods and products in progress are valued at
the manufacturing cost including a reasonable percentage of
overheads.
Fixed assets
Depreciation according to plan is calculated on the acquisition
value and based on the assets’ estimated economic lives as
follows:
Computer systems 4 years
Goodwill 5 years
Buildings 33 years
Plant and machinery 5 – 12 years
Inventory, tools fi xtures and fi ttings 3 – 7 years
Capital expenditure on leasehold properties 20 years
Leasing
Swedish Financial Accounting Standards Council’s recommendation
no. 6 is applied. Assets that are leased via contracts classifi
ed as fi nancial are accounted for in the Group as plant and
machinery and are written off in accordance with the principles
for these. Future leasing fees are reported as liabilities, and
leasing fees paid during the year reduce the reported liability
after deduction for interest.
Development work
Expenses for production, materials and product development are
reported in the income statement.
NOTE 2 BREAKDOWN OF NET SALES BY GEOGRAPHIC MARKET
Group Parent Company
SEK T 2000 1999 2000 1999
Sweden 143,417 132,471 44,121 29,556
France 163,581 142,973 — —
Great Britain 130,348 114,697 — —
Germany 82,718 90,826 — —
Other markets 353,857 287,484 — —
Total 873,921 768,451 44,121 29,556
HL Display 2000
NOTES
29

NOTES
30 HL Display 2000
NOTE 3 INTRA-GROUP PURCHASING AND SALES
Of the parent company’s net sales SEK 43,732 T (24,614) refers to services sold to Group companies.
NOTE 4 WAGES, SALARIES, OTHER REMUNERATION AND SOCIAL SECURITY COSTS
2000 2000 1999 1999
Wages, salaries Soc.sec costs Wages, salaries Soc.sec costs
and other of which pension and other of which pension
SEK T payments costs payments costs
Parent company 13,346 7,524 9,355 5,374
(of which pension costs) — (2,273) — (1,375)
Subsidiaries 189,968 58,735 171,300 57,490
(of which pensions costs) — (7,759) — (8,450)
Total 203,314 66,259 180,655 62,864
NOTE 5 BREAKDOWN OF WAGES AND OTHER PAYMENTS
2000 2000 1999 1999
Board Other Board Other
SEK T and MD employees and MD employees
Parent company 1,247 12,099 1,245 8,110
Subsidiaries in Sweden 3,054 114,328 3,068 106,793
Subsidiaries abroad 9,630 62,956 8,320 53,119
Total 13,931 189,383 12,633 168,022
NOTE 6 DEPRECIATION
Group Parent company
SEK T 2000 1999 2000 1999
Computer systems – 3,879 – 2,059 – 1,766 – 1,043
Goodwill – 2,896 – 2,822 –- –-
Land and buildings – 412 – 399 –- –-
Plant and machinery – 32,463 – 25,491 – 943 – 744
Capital expenditure on leasehold properties – 547 – 484 –- –-
Total – 40,197 – 31,255 – 2,709 – 1,787
NOTE 7 LEASING CONTRACTS
Equipment hired by the company under fi nancial leasing contracts is reported for as plant and machinery.
Accumulated acquisition values amount to SEK 13,266 T and accumulated depreciation to SEK 2,291 T.
An amount of SEK 7,139 T is reported as long-term liability and SEK 2,562 T as current liability.
Group Parent company
Financial Operational Operational
SEK T leasing leasing leasing
Paid leasing fees 2000 2,603 10,017 1,326
Future payment obligations
Due for payment 2001 2,623 9,843 1,160
Due for payment 2002 – 2004 6,485 21,614 1,930
Due for payment 2005 or later 1,086 6,154 —
Total future payment obligations 10,194 37,611 3,090

NOTE 8 RESULTS FROM PARTICIPATIONS IN GROUP COMPANIES
Parent Company
SEK T 2000 1999
Dividends and Group contribution 77,203 79,067
Write-down of participations — – 8,000
Total 77,203 71,067
NOTE 9 RESULTS FROM OTHER SECURITIES AND RECEIVABLES THAT ARE ACCOUNTED FOR AS FIXED ASSETS
Group Parent Company
SEK T 2000 1999 2000 1999
Translation difference 57 – 3,796 — —
Interest from Group companies — — 8,676 5,671
Currency exchange rate differences on long-term receivables — — — —
Interest income from long-term receivables from associated companies 483 424 483 419
Capital gains — 72 — 0
Total 540 – 3,300 9,159 6,090
NOTE 10 OTHER INTEREST INCOME AND SIMILAR ITEMS
Group Parent Company
SEK T 2000 1999 2000 1999
Interest income 1,086 670 30 13
Currency exchange differences 2,144 — 2,154 508
Total 3,230 670 2,184 521
NOTE 11 OTHER INTEREST EXPENSES AND SIMILAR ITEMS
Group Parent Company
SEK T 2000 1999 2000 1999
Interest expenses – 7,406 – 5,048 – 1,777 – 634
Interest expenses Group companies — — – 192 – 330
Currency exchange differences — – 598 — —
Total – 7,406 – 5,646 – 1,969 – 964
NOTE 12 APPROPRIATIONS
Parent Company
SEK T 2000 1999
Difference between book depreciation and depreciation according to plan 450 – 2,400
Provision to tax allocation reserve 6,561 – 1,950
Change in tax equalisation reserve 120 121
Total 7,131 – 4,229
NOTE 13 TAX ON PROFIT FOR THE YEAR
Group Parent Company
SEK T 2000 1999 2000 1999
Tax paid – 16,105 – 17,334 3 – 2,596
Tax on Group contributions paid — — – 12,649 – 9,786
Deferred tax – 1,276 2,274 — 0
Total – 17,381 – 15,060 – 12,646 – 12,382
HL Display 2000
NOTES
31

NOTES
32 HL Display 2000
NOTE 14 INTANGIBLE FIXED ASSETS
Group Parent Company
SEK T Computer systems Goodwill Computer systems
Acquisition value, opening balance 16,530 19,897 10,461
The year’s purchases 7,730 100 3,101
Sales and disposals – 4,148 — – 4,048
Reclassifi cations 256 — —
Accumulated acquisition value, closing balance 20,368 19,997 9,514
Depreciation, opening balance – 7,074 – 10,144 – 5,228
Sales and disposals 4,108 — 4,043
Reclassifi cations – 109 — —
The year’s depreciation – 3,879 – 2,896 – 1,766
Accumulated depreciation, closing balance – 6,954 – 13,040 – 2,951
Planned residual value, closing balance 13,414 6,957 6,563
NOTE 15 TANGIBLE FIXED ASSETS
Group Parent Company
Land Plant and Capital expenditure Plant and
SEK T and buildings* machinery on leasehold properties machinery
Acquisition value, opening balance 13,910 220,956 9,554 6,090
Acquired acquisition values — — — —
The year’s purchases 630 49,134 3,973 210
Sales and disposals – 4 – 8,495 – 542 – 1,632
Reclassifi cations — – 256 — —
Accumulated acquisition values, closing balance 14,536 261,339 12,985 4,668
Depreciation, opening balance –913 – 102,920 – 1,784 – 3,599
Acquired depreciation — — — —
Sales and disposals 3 5,575 — 1,633
Reclassifi cations — 109 — —
This year’s depreciation – 412 – 32,463 547 – 943
Accumulated depreciation, closing balance – 1,322 – 129,699 2,331 – 2,909
Planned residual value, closing balance 13,214 131,640 10,654 1,759
* Book value of properties in Sweden SEK 13,214 T. Tax assessment values of properties in Sweden SEK 4,570 T.
NOTE 16 FINANCIAL FIXED ASSETS
Group Parent Company
Participations Other Participations Participations
SEK T in associated long-term in Group in associated
companies receivables companies companies
Opening balance 10,000 229 42,063 11,851
Shareholder contributions — — 4,540 1,000
Amortizations — – 9 — —
Planned residual value, closing balance 10,000 220 46,603 12,851

NOTE 17 PARTICIPATIONS IN GROUP COMPANIES
Directly owned Reg. offi ce
Corporate Capital Votes, Number Book
identy no. share, % % of shares value
HL Display Belgium N.V. Antwerp 298984 100 100 1,000 283
HL Display ˘Ceská republika s.r.o Prague 65410394 100 100 1 26
HL Display Deutschland GmbH Langenfeld HRB2713 100 100 1 2,606
HL Display Falkenberg AB Falkenberg 556446-0557 100 100 1,500 13,208
HL Display Falun AB Falun 556545-6976 100 100 1,000 100
HL Display France S.A. Tours RCSB377988 100 100 250 268
HL Display Inc. Wilkes-Barre 23-2869204 100 100 3,297
HL Display Latvia SIA Latvia 000330382 100 100 100 1,522
HL Display Leigdekkers Wigk Big Dunrstede 30152867 70 70 200 572
HL Display Ltd Sti Istanbul 428930-376512 100 100 461 830
HL Display Norge A/S Asker 955437071 100 100 1,000 5,598
HL Display OOO Moscow 7701211771 100 100 1 140
HL Display Polska Sp.z o.o Warzaw 521-04-17-996 100 100 1 235
HL Display Schweiz AG Aarau 422069 100 100 100 543
HL Display Singapore Pte Ltd. Singapore 200004486H 100 100 1 0
HL Display Sundsvall AB Sundsvall 556124-0481 100 100 1,500 11,125
HL Display Sverige AB Stockholm 556351-9528 100 100 100 50
HL Display (UK) Ltd Kirmington 2187037 100 100 10,000 935
HL Display Österreich GmbH Vienna FN140307i 100 100 1 327
HL Display Lesjöfors AB Filipstad 556439-7429 100 100 5,000 4,454
HL Qvarnströms Förvaltning AB Filipstad 556518-4073 100 100 1,000 100
H Lundvall Display Hungaria Budapest 0112073189/7 100 100 1 114
Jegab Display AB Stockholm 556457-7202 100 100 500 128
Media Display AB Stockholm 556435-0832 100 100 500 128
SCI L’Eclipse Tours D 414 745 026 100 100 100 14
Total
Indirectly owned
46,603
Envoy Display Ltd. Buckingham 02928820 100 100 100 —
RIM Fabrications Ltd. Shipley 256682 100 100 1,000 —
HL Display Nederland B.V. Westnoordbraband 20085397 100 100 1,671 —
NOTE 18 PARTICIPATIONS IN ASSOCIATED COMPANIES
Corporate Capital Votes, Number Book
Directly owned Reg. offi ce identy no. share, % % of shares value
HL Trion AB, (joint venture) Filipstad 556539-1637 50 50 500 2,851
Optimus KB Stockholm 916620-1450 30 30 1 10,000
Summa
Indirectly owned
12,851
Trion HL LLC. (joint venture) Wilkes-Barre 23-23841295 50 50 —
NOTE 19 INVENTORIES
Group Parent Company
SEK T 2000 1999 2000 1999
Raw materials and consumables 25,872 20,867 — —
Products in progress 6,584 6,120 — —
Finished goods 66,762 52,001 — —
Work in progress 476 — — —
Total 99,694 78,988 — —
HL Display 2000
NOTES
33

NOTES
34 HL Display 2000
NOTE 20 OTHER RECEIVABLES
The Group’s other receivables include income taxes recoverable SEK – (1,502) T and SEK 3,813 T (–) in the parent company.
NOTE 21 PREPAID EXPENSES AND ACCRUED INCOME
Group Parent Company
SEK T 2000 1999 2000 1999
Prepaid rents 1,709 2,940 — 273
Prepaid leasing costs 1,415 1,172 167 153
Prepaid insurance costs 452 477 — 151
Prepaid product catalogue costs 652 300 652 300
Prepaid costs for rebuilding 2,374 3,524 — —
Accrued interest income 558 419 558 419
Other items 7,985 3,982 932 408
Total 15,145 12,814 2,309 1,704
NOTE 22 CHANGE IN SHAREHOLDER’S EQUITY
Group Parent Company
Share Restricted Unrestricted Share Legal Retained
SEK T capital reserves reserves capital reserve profi t
Opening balance 38,444 45,878 137,846 38,444 7,689 69,664
Dividend paid — — – 9,996
Transfers between restricted and
— — – 9,995
unrestricted equity — – 1,028 1,028 — — —
Group contributions paid — — — — — – 45,175
Tax on Group contributions paid — — — — — 12,649
Net profi t for the year — — 26,747 — — 72,120
Closing balance 38,444 44,850 155,625 38,444 7,689 99,263
NOTE 23 UNTAXED RESERVES
Parent Company
SEK T 2000 1999
Provisions for taxes 1,950 2,400
Provisions for additional purchase price 19,070 25,631
Provisions for customer bonus/es — 120
Total 21,020 28,151
NOTE 24 PROVISIONS
Group Parent Company
SEK T 2000 1999 2000 1999
Provisions for taxes 8,716 7,436 — —
Provisions for additional purchase price 2,940 2,940 2,940 2,940
Provisions for customer bonus/es 5,341 3,675 — —
Total 16,997 14,051 2,940 2,940
NOTE 25 LONG-TERM LIABILITIES
Of long-term liabilities in the Group SEK 46,901 T (11,379) comprises liabilities to credit institutions due for payment more than fi ve
years after closing day. The corresponding fi gure for the parent company is SEK 1,274 T (1,699).
NOTE 26 BANK OVERDRAFT FACILITIES
Approved bank overdraft facilities amounted for the Group SEK 73,767 T (63,306) and SEK 50,000 T (40,000) for the parent
company.

NOTE 27 ACCRUED EXPENSES AND PRE-PAID INCOME
Group Parent Company
SEK T 2000 1999 2000 1999
Accrued interest expenses 55 199 46 149
Accrued social security fees 11,156 11,548 1,247 1,160
Accrued vacation liability 19,365 16,568 2,132 1,652
Accrued wages/salary 6,988 6,429 — —
Other items 13,949 12,585 153 82
Total 51,513 47,329 3,578 3,043
NOTE 28 ASSETS PLEDGED
Assets pledged to secure liabilities to credit institutions Group Parent Company
SEK T 2000 1999 2000 1999
Floating charges 79,140 53,450 — 12,500
Property mortgages 13,000 13,000 — —
Participations in group companies — — 46,603 —
Total 92,140 66,450 46,603 12,500
NOTE 29 CONTINGENT LIABILITIES
Group Parent Company
SEK T 2000 1999 2000 1999
Guarantees on behalf of other Group companies — — 27,056 8,370
Other guarantees 222 270 51 55
Discounted bills 15,998 1,816 — —
Total 16,220 2,086 27,107 8,425
NOTE 30 AVERAGE NUMBER OF EMPLOYEES
2000 1999
Average number Employees Of which Employees Of which
men men
Parent Company, Sweden 27 16 24 11
Subsidiaries, Sweden 448 335 434 326
Total 475 351 458 337
Subsidiaries abroad
Austria 11 8 9 6
Belgium 20 10 17 10
Czech Republic 15 6 13 5
France 50 31 46 28
Germany 26 17 25 17
Great Britain 80 57 68 49
Hungary 6 2 6 2
Latvia 10 6 8 5
Norway 16 11 17 10
Poland 24 12 16 8
Russia 4 3 2 1
Switzerland 6 4 4 2
The Netherlands 25 16 17 10
Turkey 5 3 — —
Total 298 186 248 153
Group total 773 537 706 490
HL Display 2000
NOTES
35

NOTES
36 HL Display 2000
NOTE 31 BENEFITS TO SENIOR EXECUTIVES
There are no agreements for severance pay or fi nal salary.
Board of directors
Fees to the Board SEK 260 T were paid, of which the Chairman
received SEK 120 T. Members employed by the company
received no extra fee for Board work.
Managing director
The parent company’s MD and CEO received payment during the
year of SEK 1,063 T including car allowance.
The pension agreement follows the ITP plan. A mutual six-month
period of notice is applied. No agreements of severance pay or
profi t participation exists.
Other senior executives
Pension agrements for the rest of the Group management follows
the ITP plan. A mutual six-month period of notice is applied.
There are no outstanding convertibles or options programmes
in HL Display. However, the Board is, in principle, positive to
incentive programmes and is currently looking into the issue.
NOTE 32 TRANSACTIONS WITH RELATED PARTIES
Board members Anders Remius, Lis Remius and Kent Hertzell own
through a company shares in DataVis AB. During 2000 DataVis
Stockholm, 1 February 2001
Åke Wester
Chairman
invoiced the Group companies an amount of SEK 15,588 T
(10,935). The invoices relates to licences and work carried out for
operating, developing and supporting the Group’s IT network and
business systems.
NOTE 33 FEES TO AUDITORS
The Group’s cost for auditing fees to ÖhrlingsPricewaterhouse
Coopers amounted to SEK 882 T (500), of which SEK 50 T
(80) relates to the parent company. Costs for other assignments
amounted to SEK 1,109 T (1,335 M), of which SEK 901 T (564)
relates to the parent company.
The Group has also employed Deloitte & Touche at a cost of
SEK 25 T (114) for auditing and SEK 55 T (15) for other assignments.
Auditing fees to other auditing fi rms totalled SEK 23 T (–).
NOTE 34 PURCHASE PRICE OF ACQUISITIONS
During the year no subsidiaries were purchased. Last year
acquisitions worth SEK 8,588 T were made.
NOTE 35 LIQUID ASSETS IN ACQUIRED COMPANIES
Liquid assets in acquired companies upon purchase last year
amounted to SEK 329 T.
NOTE 36 DIVISION OF LIQUID ASSETS
The item liquid assets consists only of the items cash and bank.
Gustav Bard Kent Hertzell
Arne Karlsson
Kent Mossberg Magnus Jonsson Lis Remius
Anders Remius
Managing Director

Auditors’ report
To the general meeting of the shareholders of HL Display AB (publ) Reg.no. 556286-9957.
We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of
directors and the managing director of HL Display AB (publ) for the year 2000. These accounts and the administration of the
company are the responsibility of the board of directors and the managing director. Our responsibility is to express an opinion
on the annual accounts, the consolidated accounts and the administration based on our audit.
We conducted our audit in accordance with generally accepted auditing standard in Sweden. Those standards require that we
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, as well as evaluating the overall presentation of information in the annual accounts and the
consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined signifi cant 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. We 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. We believe
that our audit provides a reasonable basis for our opinion set out below.
The annual accounts and the consolidate accounts have been prepared in accordance with the Annual Accounts Act and,
thereby, give a true and fair view of the fi nancial position of the company and Group and of the results of operations in
accordance with generally accepted accounting standards in Sweden.
We recommend to the general meeting of shareholders that the income statement and balance sheet for the parent company
and Group be adopted, that the profi t for the parent company be dealt with in accordance with the proposal in the administration
report and that the board of directors and the managing director be discharged from liability for the fi nancial year.
Stockholm, 1 February 2001
Richard Roth Liselott Stenudd
Authorised Public Accountant Authorised Public Accountant
Öhrlings PricewaterhouseCoopers Öhrlings PricewaterhouseCoopers
AUDITORS' REPORT
HL Display 2000
37

THE HL DISPLAY SHARE
The HL Display share
38 HL Display 2000
Share price development
Since 1993, HL Display’s shares have been listed on the OM
Stockholm Stock Exchange. Since the introduction, the value
of the shares has increased by 408 per cent, from SEK 14.37
(corrected for bonus issues) to SEK 73 on 31 December
2000. During the same period, Affärsvärlden’s General Index
increased by 252 per cent.
In 2000, the share price fell by 54.6 per cent. Last year,
the share has been traded at a maximum of SEK 161 and
a minimum of SEK 61.50. Last year, 1,437,652 shares were
traded, corresponding to 18.7 per cent of the number of
shares in HL Display. At the end of the year, HL Display’s
market capitalisation was SEK 561 billion.
Share capital
On 31 December 2000, the share capital amounted to SEK
38,444,360 divided among 7,688,872 shares, each with a nomi-
Share price trend
250
200
150
100
50
20
B-Share
Afv General Index
nal value of SEK 5. Series A shares carry one vote and series B
carry 1/10 of a vote. A block of shares amounts to 100 shares.
Shareholders
The number of shareholders on 31 December 2000 was 3,063
(3,862). The proportion of institutional owners is estimated at
48.9 (45.6) per cent of the capital and the proportion of foreign
owners amounted to 2,6 (1.3) per cent. 79 (82) per cent of all
shareholders in HL Display owned fewer than 500 shares each.
Dividend policy
HL Display’s Board have decided that a restrictive dividend
policy should be applied during an anticipated growth phase.
Over time, the dividend will correspond to one fi fth of profi t
after fi nancial net and standard tax.
The Board proposes that the dividend be increased to SEK
1.40 (1.30) per share.
No. of Shares traded,
thousands
(incl. after-hours)
94 95 96 97 98 99 00 01
Ownership Structure, %
Foreign Owners, 2.6%
Swedish
Units Trusts,
3.3%
Swedish
Institutions,
43%
Private
Owners, 51.1%
Distribution of shareholdings, 31 December 2000
No. of shares No. of shareholders No. of shares % of shares
1 – 500 2,425 357,013 4.6
501 – 2,000 523 548,261 7.1
2,001 – 10,000 90 442,758 5.8
10,001 – 50,000 12 284,600 3.7
50,001 – 100,000 5 382,472 5.0
> 100,000 8 5,673,768 73.8
Total 3,063 7,688,872 100.0
1 000
(c)SIX
750
500
250

Data per share1,2) 2000 1999 1998 1997 1996 1995 1994 1993
Earnings per share after full tax, SEK 3.48 4.20 5.81 5.65 4.20 1.37 3.09 2.15
Earnings per share after standard tax, SEK 4.13 4.41 6.65 5.96 4.32 1.80 3.33 2.17
Dividend per share, SEK 1.403) 1.30 1.30 1.20 1.00 0.63 0.63 0.38
Dividend, % of profi t after full tax 40.2 31.0 22.4 21.2 23.8 46.0 20.4 17.7
Share price, end of period, SEK 73.00 161.00 205.50 187.00 70.00 36.50 36.50 21.75
Equity per share, SEK 31.07 28.89 26.00 21.39 16.74 13.16 12.42 9.71
Return on equity after full tax, % 11.6 15.3 24.5 29.6 28.1 10.7 27.9 31.6
Direct yield, % 1.9 0.8 0.6 0.6 1.4 1.7 1.7 1.7
P/E ratio, 31 December 20.96 38.35 35.37 33.08 16.67 26.64 11.81 10.12
P/CE ratio, 31 December 1.08 neg. neg. 93.5 25.7 neg. neg. 5.3
Cash fl ow per share, SEK 67.59 –1.91 –2.91 2.00 2.72 –1.35 –1.23 4.10
1) For definitions of key ratios, see page 43.
2) Data per share corrected for bonus issues in 1994 and 1997.
3) According to the Board’s proposal.
Largest HL Display shareholders, 31 December 2000
Name No. of No. of Total no. Share of No. of Share of
A shares B shares of shares capital, % votes votes, %
Remius family 803,808 1,659,668 2,463,476 32.0 969,775 61.0
Atle AB 109,216 2,115,854 2,225,070 28.9 320,801 20.2
Skandia — 795,312 795,312 10.3 79,531 5.0
Robur’s small Co. fund Sweden — 180,100 180,100 2.4 18,010 1.1
Lars Jonsson, and family — 161,222 161,222 2.1 16,122 1.0
CDC – Gestitres — 106,700 106,700 1.4 10,670 0.7
Richard Moser — 84,000 84,000 1.1 8,400 0.5
Göran Källebo — 81,600 81,600 1.1 8,160 0.5
Småbolagsfonden — 51,100 51,100 0,7 5,110 0.3
Ulrika Wiman, and family — 48,000 48,000 0.6 4,800 0.3
Others — 1,492,292 1,492,292 19.4 149,229 9.4
Total 913,024 6,775,848 7,688,872 100.0 1,590,609 100.0
Change in share capital
Share capital Change in Total Change in Par value/
Year development share capital share capital no. of shares A shares B shares Total share
1986 50,000 500 500 — 500 100
1987 New issue1) 750,000 800,000 7,500 8,000 — 8,000 100
1988 Split 1:10 — 800,000 72,000 80,000 — 80,000 10
1992 Bonus issue 1,600,000 2,400,000 160,000 240,000 — 240,000 10
1992 New issue2) 645,000 3,045,000 64,500 304,500 — 304,500 10
1993 Restamping — 3,045,000 — 150,545 153,955 304,500 10
1993 Split 2:1 — 3,045,000 304,500 301,090 307,910 609,000 5
1993 Restamping — 3,045,000 — 114,128 494,872 609,000 5
1993 Conversion3) 673,590 3,718,590 134,718 114,128 629,590 743,718 5
1993 New issue4) 1,086,955 4,805,545 217,391 114,128 846,981 961,109 5
1994 Bonus issue 14,416,635 19,222,180 2,883,327 456,512 387,924 3,844,436 5
1997 Bonus issue 19,222,180 38,444,360 3,844,436 913,024 775,848 7,688,872 5
1) Share price SEK 100.
2) Share price SEK 46.67.
3) SEK 1,500,000 at a price of SEK 41.65 and SEK 2,467,500 at a price of SEK 25.00.
4) Share price SEK 115.
THE HL DISPLAY SHARE
HL Display 2000
39

BOARD OF DIRECTORS
Board of Directors
40 HL Display 2000
Åke Wester
Born: 1939. Member of the Board
since 1993. Board chairman.
Holding: 2,000 shares (family).
Other appointments: Board
chairman of Atle Teknik AB,
Atle Mergers & Acquisitions, AB
Centralsug, AB Studsvik. Board
member in Hilding Anders AB.
Kent Hertzell
Born: 1950. Member of the Board
since 1987. Position: Financial
director HL Display AB.
Holding: 12,500 shares.
Other appointments: Board member
in Kriss AB, DataVis AB, CTT
Systems AB.
Gustav Bard
Born: 1964. Member of the Board
since 2000. Position: MD of Atle
Mergers & Acquisitions.
Holding: 0 shares
Magnus Jonsson
Born: 1969. Member of the
Board since 1998.
Employee representative.
Holding: 0 shares.
Deputy member
Tommy Persson
Born: 1971. Deputy member since 1999.
Employee representative.
Holding: 0 shares.
Anders Remius
Born: 1947. Member of the
Board since 1982.
Position: MD of HL Display AB.
Holding: 874,464 shares, including
401,904 A shares. Through
company 84,050 B shares.
Other appointments:
Board member in DataVis AB.
Arne Karlsson
Born: 1958. Member of the
Board since 1997. Position: MD of
Förvaltnings AB Ratos.
Holding: 0 shares.
Other appointments: Board member
in Esselte, Superfos, Scandic.
Lis Remius
Born: 1945. Member of the
Board since 1982.
Holding: 873,622 shares,
including 401,904 A shares.
Through company 84,050
B shares.
Kent Mossberg
Born: 1957. Member of the
Board since 1995.
Employee representative.
Holding: 1,330 shares.

Board procedures
HL Display’s board consists of six members and a deputy
elected by the AGM, as well as two representatives and a
deputy elected by the employees. The Chairman of the Board
is appointed by the AGM.
Among the Board members there are persons with connections
to HL Display’s larger shareholders and to persons
independent of the owners.
The Board normally meets six times per year and, additionally
when required. During the 2000 fi nancial year, the
Board met seven times. Board meeting days are set in conjunction
with the statutory board meeting. Some Board meetings
coincide with dates for fi nancial information. These are
the quarterly, half-yearly and annual closing days.
The work of the Board follows an annual plan with special
themes and fi xed dates for decisions. A normal agenda
for a board meeting is as follows:
�� Meeting opened
�� Election of minute-verifi ers
�� Review of minutes of previous meeting
�� Finances
�� Board’s basis of appraisal
�� Internal control
�� Other questions
�� Meeting adjourned
The Group’s CFO, Kent Hertzell, serves as secretary of
the Board.
Rules of procedure
The work of the Board is regulated by special rules of
procedure. In brief, the rules of procedure state that the
Board is responsible for the company’s organisation and the
administration of the company’s affairs. The Board must
ensure that the company’s organisation is such that accounting,
funds administration and the company’s fi nancial affairs
are checked and managed in a secure manner.
The Board must continuously monitor the fi nancial situation
of the company and Group. This is reported monthly so that
the Board can carry out its appraisal duties as required by
law, listing rules and good board practice.
Generally, the Board deals with matters of essential
importance to the Group, such as:
�� Strategic plans
�� Budget
�� Marketing plans
�� Production planning
�� Acquisition and sale of companies or businesses
�� Acquisition and sale of other signifi cant assets
Important issues during 2000
�� Establishment of Sales companies
in Singapore and Ukraine.
�� Organisational changes
�� Investments.
Instructions
The Board has issued special instructions on the responsibilities
and authority of the Managing Director of HL Display.
The Board has further issued special reporting instructions
to the management.
Fees
Total fees to the Board of HL Display amounted to SEK 260,000
of which SEK 120,000 to the Board Chairman. No payments,
other than those approved by the AGM, have been made.
Committees
Last year, the Board appointed a special nomination committee
charged with proposing suitable Board members in close
consultation with the larger shareholders. The committee also
proposes fees for the Board.
During the year, the nomination committee consisted of
three members; Åke Wester, Chairman of HL Display AB,
Anders Remius, Managing Director of HL Display AB and
Lars Gårdö, Managing Director of Atle AB.
Proposals from individual shareholders can be made by
post via HL Display’s head offi ce in Skarpnäck. Last year,
HL Display’s Board did not appoint a remuneration or audit
committee. These issues are decided by the Board directly.
BOARD PROCEDURES
HL Display 2000
41

SENIOR EXECUTIVES
Senior Executives
42 HL Display 2000
Anders Remius
Managing Director
Born: 1947.
Employed since: 1978.
Holding: 874,464 shares,
including 401,904 A shares.
Through company 84,050
B shares.
Jan Sigurdh
Production
Born: 1965.
Employed since: 1999.
Holding: 500 shares.
Håkan Eriksson Marketing
Born: 1966.
Employed since: 1992.
Holding: 100 shares.
Kenneth Löfgren
IT
Born: 1960.
Employed since: 1993.
Holding: 0 shares.
Auditors
Richard Roth
Born: 1947. Auditor for the company since 1995.
Öhrlings PricewaterhouseCoopers
Liselott Stenudd
Born: 1956. Auditor for the company since 1999.
Öhrlings PricewaterhouseCoopers
Kent Hertzell
Economy and Finance
Born: 1950.
Employed since: 1995.
Holding: 12,500 shares.
Martin Ljungström
Sales
Born: 1957.
Employed since: 1999.
Holding: 300 shares.
Staffan Forslund
Personnel
Born: 1949.
Employed since: 2000.
Holding: 0 shares.
Alistair Burke
Business Development
Born: 1952.
Employed since: 1991.
Holding: 1 000 shares.
R & D
Born: 1962.
Employed since 2000.
Holding: 200 shares.
Bengt Ahlund
Lennart Danielsson
Born: 1959. Deputy since 1999.
Öhrlings PricewaterhouseCoopers

Defi nitions and glossary
Defi nitions
Direct yield
Dividend as percentage of share price
on 31 December.
Equity per share
Reported equity divided by number of
shares at year end.
Value added per employee
Operating profit plus cost of salaries
and social security payments divided
by the average number of employees.
Average collection period
Accounts receivables on 31 December
divided by net sales increased by
20 per cent VAT (average VAT in the
Group) multiplied by 365 days.
Capital turnover rate
Net sales in relation to average balance
sheet total.
Cash fl ow
In and out flow of liquid funds.
Cash fl ow per share
The year’s change in liquid assets
divided by the total number of shares.
Glossary
EDI
Electronic Data Interchange – a
technique that enables data to be
communicated electronically between
the computer systems of different
companies.
Extrusion
A production technique in which
melted plastic is extruded through
a die that determines its crosssectional
shape. The product, such
as datastrip, is extruded in a
continuous form that is cooled in
a water bath and cut in the desired
length.
Injection moulding
A production technique in which
melted plastic is forced into moulds
to set. The shape of the mould
determines the appearance of the
product, such as a frame.
P/E ratio
Share price on 31 December divided
by earnings per share after full tax.
P/CE ratio
Share price on 31 December divided
by cash flow per share.
Return on equity after full tax
Profit after tax in relation to average
equity.
Return on capital employed
Profit after financial items plus financial
expenses in relation to average
capital employed. Capital employed is
the balance sheet total less non-interest-bearing
liabilities.
Return on total capital
Profit after financial items plus financial
expenses in relation to average
balance sheet total.
Interest coverage ratio
Profit after financial items plus financial
expenses in relation to financial
expenses.
ISO 14001
An international standard for environmental
management systems by
which the company is required to
take systematic measures to reduce
its overall environmental impact.
Joint venture
A business enterprise owned jointly
by two separate companies.
Hot- and cold-bending
A production technique in which
plastic sheets are shaped into
the desired form such as shelf
talkers, which the help of a being
tool. In hot-bending,
a heated bending tool is used.
PC
Polycarbonate. Plastic well suited for,
among others, injection moulding. PC
is recyclable.
Debt/equity ratio
Interest-bearing liabilities in relation
to equity.
Equity/assets ratio
Equity including minority share in rela
Development expenses
Development expenses are expenses
for production, materials and product
development.
Earnings per share after full tax
Earnings after tax divided by the
number of shares at year end.
Earnings per share after
standard tax
Earnings before financial items, less
28 per cent standard tax divided by
the number of shares at year end.
Profi t margin
Profit after financial items in relation
to net sales.
PET
Polyethyleneterephtalate. This plastic
is well suited for, among others,
injection moulding. PET is recyclable.
PVC
Polyvinyl chloride. A plastic that is
well suited for extrusion, injectionmoulding
and vacuum moulding. PVC
can be welded, glued, stamped and
processed in other ways. PVC is
recyclable.
UV-colour
Pigment that is hardened through
irradiation with ultraviolet light.
Vertical integration
Control of both production and sales
channels.
Vacuum moulding
A production technique in which
plastic sheets are heated and through
vacuum shaped around a tool into
products, such as trays.
DEFINITIONS AND GLOSSARY
HL Display 2000
43

SEVERAL YEARS SUMMARY
Summary covering several years
44 HL Display 2000
Income statement (SEK T) 2000 1999 1998 1997 1996 1995 1994 1993
Net sales 873,921 768,451 646,646, 481,057 356,118 300,421 260,245 182,911
Operating income 47,731 55,401 69,042 63,615 46,895 21,441 35,053 21,039
Depreciation 40,197 31,255 25,660 21,311 18,151 14,212 9,813 6,240
Profi t after fi nancial items 44,095 47,125 70,969 63,603 46,166 19,196 35,570 23,122
Net profi t for the year 26,747 32,277 44,644 43,461 32,290, 10,500 23,755 16,511
Balance sheet (SEK T) 2000 1999 1998 1997 1996 1995 1994 1993
Fixed assets 186,099 168,241 131,584 94,118 63,662 57,495 44,228 28,602
Current assets 315,701 262,131 253,053 204,371 149,282 108,243 104,614 98,112
Total assets 501,800 430,372 384,637 298,489 212,944 165,738 148,842 126,714
Shareholders’ equity
incl. minority share 238,919 222,201 199,887 164,469 128,697 101,213 95,519 74,647
Provisions 16,997 14,051 18,167 11,784 6,551 4,969 4,555 4,159
Long-term liabilities 93,727 71,174 56,391 33,819 14,243 17,828 3,744 6,241
Current liabilities 152,157 122,946 110,192 88,417 63,453 41,728 45,024 41,677
Shareholders’ equity and liabilities 501,800 430,372 384,637 298,489 212,944 165,738 148,842 126,714
Key ratios1) 2000 1999 1998 1997 1996 1995 1994 1993
Average no. of employees 773 706 582 464 347 315 260 193
Net sales per employee, SEK T 1,131 1,088 1,111 1,037 1 026 954 1,001 948
Net sales increase, % 13.7 18.8 34.4 35.1 18.5 15.4 42.3 42.3
Profi t margin, % 5.0 6.1 11.0 13.2 13.0 6.4 13.7 12.6
Equity/assets ratio, % 47.6 51.6 52.0 55.1 60.5 61.1 64.2 58.9
Debt/equity ratio 0.42 0.32 0.31 0.21 0.14 0.22 0.09 0.10
Return on total capital, % 11.0 12.9 21.9 26.2 25.7 13.6 26.6 26.2
Return on equity after full tax, % 11.6 15.3 24.5 29.6 28.1 10.7 27.9 31.6
Return on capital employed, % 15,5 18.6 32.5 38.7 35.9 18.8 39.8 41.7
Interest coverage ratio
Net investments including
7.0 9.3 19.6 20.0 20.1 9.6 32.3 11.0
acquisitions, SEK T 58,099 67,913 63,756 41,340 24,496 27,468 25,066 12,934
Liquid assets, SEK T 31,328 22,935 38,701 59,951 44,211 23,291 33,654 43,149
Development expenses, SEK T 26,902 24,581 21,197 16,654 13,129 10,922 9,941 7,299
For definitions, see page 43.

History
1954
In Borlänge, Sweden, Harry Lundvall starts producing display
material for the retail trade.
1969
The son of Harry Lundvall, Åke Westberg, takes over the
company.
1975
The company obtains a patent for its current main product,
HL Data strip, a so-called shelf edge label of extruded plastics.
1977
Lis Remius (daughter of Åke Westberg) and her husband
Anders Remius, found Flexisystem AB, a sales company
independent from HL Display.
1982
HL Display and Flexisystem are sold to the investment
company Parcon. Net sales this year totalled SEK 12 million.
1986
Lis and Anders Remius, who have remained active within the
company, buys HL Display from Parcon. At this point, net
sales amount to around SEK 28 million.
1987
Sales companies are set up in Benelux and Britain. A plan is
formed for a fl otation of HL Display on the stock market in
the autumn of 1993.
1989
A sales offi ce is set up in Germany.
1990
Sales companies are set up in Norway and France.
1993
Jegab Display’s business is acquired by the turn of the year
92/93. In December, HL Display is fl oated on the stock market.
1994
Media Display’s business is acquired in January 1994. Sales
companies in Poland and the US are set up. The head offi ce and
the Swedish sales company move to new premises in Skarpnäck.
1996
The sales offi ce in the US is wound up. A joint venture
agreement is signed with Trion Industries Inc., market
leaders in the US for metal display hooks. HL Display
acquires Qvarnströms Säljställ i Lesjöfors AB. Sales
companies are set up in Austria and the Czech republic.
1997
The shopfi tting construction company PEFAB in Falkenberg is
acquired and changes its name to HL Display Falkenberg AB.
1998
Sales companies in Hungary and Switzerland are set up.
HL Display (UK) Ltd acquires Envoy Display (Ltd). HL Display
is the fi rst Swedish listed company to publish monthly fi nancial
results. HL Display Sundsvall AB is ISO 14001 certifi ed.
Production fl oor space increases by 60 per cent.
1999
Sales companies are set up in Latvia, Russia and Turkey.
RIM Fabrications Ltd, a production facility in Britain, is
acquired. HL Display Falun AB is ISO 14001 certifi ed.
2000
Sales companies are set up in Singapore and Ukraine.
Design and production: LINK Finansiell Kommunikation.
Text: LINK in collaboration with HL Display. Photography: Ulf Blomberg and others.
Printed by: db-grafi ska, 2001. Printed on: Arctic Silk.

HL Display AB (publ)
Horisontvägen 26, 128 34
Skarpnäck, Sweden
Tel + 46 8 683 73 00
Fax + 46 8 683 73 01
www.hl-display.com