pRoplate annual RepoRt 2009/2010

RethInk
your
plate
business
Proplate Annual Report 2009/2010
ON THE CUTTING EDGE

Experts at
cutting
steel

PROPLATE
Proplate specializes in cutting steel. We are world leaders in
straps for mobile cranes, and our methods entail high efficiency,
capacity and quality. Proplate’s largest production unit is in
Oxelösund, Sweden and is one of the most modern steel cutting
plants in the world. In terms of logistics the plant is ideally located
by the deepest sea harbor on Sweden’s east coast, close to
where SSAB produces its special steel.

On
the
cutting
edge
Contents
COMMENTS BY THE CEO 6
PROPLATE SETS SIGHTS HIGH IN CHINA 8
VISION AND BUSINESS CONCEPT 10
PROPLATE TOTALCUT CONCEPT 12
PROPLATE STRAPS 16
PROPLATE HELPS LIEBHERR ENHANCE EFFICIENCY 18
FINANCIAL GOALS AND STRATEGIES 20
FACTORS DRIVING SALES 21
PROPLATE ON THE CUTTING EDGE 22
BOARD OF DIRECTORS AND GROUP MANAGEMENT 24
ORGANIZATION CHART 25
DESCRIPTION OF OPERATIONS 26
FINANCIAL STATEMENTS 30
THE CUSTOMER-ORIENTED Mastersmith 50

P ROP L A T E C O M M E N T S B Y T H E C E O
Swift turnaround
arms us for
expansion
> I am very proud of the
way Proplate’s personnel
managed to turn a difficult
situation around. We are
now better armed than
ever to forge ahead at
full speed.
6

Last year was a unique year, not only for Proplate but for the whole worldwide economy. We have never, ever
experienced quite such a sudden slowdown. Even so, there has never been any doubt that Proplate would
continue to expand. The 2009/2010 financial year was one in which the short, yet highly intensive, recession
affected us dramatically, yet we continued to focus on investments in new machinery and production facilities.
It has of course been a tough year, with falling income and several
redundancies. Nevertheless, Proplate finished the year stronger
than ever, and better equipped to fully realize our market potential.
Proplate is now recruiting again, and we continue to expand
alongside new customers on new markets, and with a very strong
concept. I predict a continued upswing in the years to come and
believe we will soon see a lack of capacity among subcontractors to
our global customers.
Adaptat ion to new situation – a must
In January 2009 Proplate had its highest ever net sales. In February
the company virtually came to a standstill and we delivered
almost exclusively from existing stock. Customer after customer
cancelled orders, and the plate stocks that had grown over many
years of prosperity stood pretty much still.
And that was when the true strength of Proplate became evident,
as we swiftly adapted to the new market situation.
F ocus on improvements
A stock reduction program gradually diminished our stocks as we
negotiated intensively with our customers. We adapted production
to a considerably lower production rate, and shifted the focus
onto productivity improvements and intensive marketing. By September
the business was breaking even, and by October we were
making a profit again. We ended up with a plus figure for the year
as a whole, with a positive cash flow and well-adapted stock levels.
I am very proud of the way Proplate’s personnel managed to
turn a difficult situation around. We are now better armed than
ever to forge ahead at full speed. For me a proactive market presence
– with an attractive business proposition – is absolutely crucial
to a company’s expansion. In recent years we have gone from
having most of our customers in Sweden, to gaining some major
customers in Europe, China and the US.
We have been very active in China in the past year, and are
consequently now delivering straps to several large customers in
the crane industry. Our flexibility, knowledge and forward-looking
spirit have made us the world’s leading producer of straps for the
crane industry in just a few years.
A concept that enhances competitiveness
During 2009/2010 we have further clarified our business concept,
and it is now communicated to the market through our Proplate
Totalcut Concept. The concept enhances our customers’ competitiveness,
and we contribute to sustainable development. Just
imagine what it involves to reduce transport by half and improve
plate utilization by 30%! By focusing on efficient, large-scale cutting,
we can optimize plate utilization and streamline logistics in
an extremely tangible way.
Proplate will carry on expanding in 2010/2011 by dramatically
increasing its market presence in China, Europe and the US.
I foresee further investments in capacity and powerful initiatives
in logistics, IT and personnel development. I fully anticipate our
financial results increasing threefold compared to 2009/2010.
We are never satisfied just to be good – Proplate should always
be on the cutting edge.
Max Björk
President and CEO
7

P ROP L A T E C H I N A
Proplate sets
sights high
in China

P ROP L A T E C H I N A
For three years Joe Huang has been Proplate’s man in China, the world’s second largest economy.
“We work professionally and forge ahead with our concept and our turnkey offering. This gives
us a definite competitive edge on a market that has tremendous potential.”
Express rate development
China has developed into the world’s hub when it comes to business
and establishing new enterprises. Partly because the market is
so big, but also because things are developing at such breakneck
speed in virtually all sectors, and especially construction and infrastructure.
“Many companies want a share of this rapid growth, and it’s
important to have a presence in China to ensure the right contact
with customers,” Joe explains.
Based in Shanghai, Joe is the man who oversees Proplate’s sales
work in China. And it’s going well. Joe explains why:
“Our customers have understood the meaning of the Proplate
Totalcut Concept. They can see the benefits of it, and they know
that the products we deliver are of the highest quality. Consequently,
we are regarded as the most professional supplier in our
industry and our niche.”
“We are regarded as the most professional supplier in our industry and niche,” says a
delighted Joe Huang.
PLANNING OWN FACTORIES
Max Björk, CEO of Proplate, agrees with the description.
He says: “The major crane manufacturers are our customers.
They find it hard to do what we do without having problems with
efficiency and good overall economy.”
Some of the world’s biggest crane manufacturers have a presence
in China, and jointly they make up around 90% of the
market in the country.
“We currently deliver straps to three of them,” says Joe, and he
sounds optimistic about the future.
That future includes strengthening Proplate’s organization in
China by increasing the sales force, and planning has also begun
for the first factory in China. In the longer term there could be
even more Proplate plants. As Max Björk puts it, it would be ‘a
natural progression’.
Like Joe, he anticipates continued strong growth on the Chinese
market.
EXPA NSION IN OTHER INDUSTRIES
“We will continue to be the leading supplier of cut material to
manufacturers of construction machines. I also foresee developments
in other sectors, such as recycling.”
Joe Huang: “We have laid a stable foundation for our business
in China. We are a strong, reliable company with good customer
relations. We will benefit greatly from our experiences and advanced
expertise as we begin the job of cultivating new customers as well.”
>> FACTS
China the global driving force
In 2009 China accounted for almost half the world’s steel production,
and overall growth in the country is expected to continue.
Development in China has been tremendous over the past 20
years. With a growth rate of almost 10% a year, China has managed
to quadruple its GNP in a quarter of a century, and the World
Bank is talking about the fastest decline in poverty in world history.
The country has become the world’s largest recipient of foreign
direct investments; everyone wants a share of the growth and the
future potential.
China has an enormous steel and engineering industry. Steel
consumption will continue to grow thanks to developments in
the construction and infrastructure sectors, for example. In 2009
China’s steel consumption grew by 19% (525 million tons), while
consumption in the rest of the world fell by 9%.
It is on this gigantic growth market that Proplate operates.
9

P ROP L A T E V I S I O N A N D B U S I N E S S C O N C E P T
vision
Proplate – on
the cutting edge
>> Proplate is an innovator. We relish a challenge, solving problems and
testing the limits. That is how we stay at the forefront. And that is how we
continue to create value for our customers – in everything we do.
It’s what we call being on the cutting edge.
10

Business concept
>> Proplate provides services that lead to efficient plate utilization,
cost-effective plate management and large-scale cutting with the
associated volume benefits, in order to strengthen our customers’
competitiveness.
Our customers are global engineering companies that value high
quality, flexibility and dependability in a close partnership.
Proplate contributes to sustainable development by being close to
plate manufacturers.
11

P ROP L A T E TOTALCUT C ONCEPT
Put all your eggs
in one basket
– it pays off!

P ROP L A T E TOTALCUT CONCEPT
Increase your profit
by letting Proplate
do more of the job
The Proplate Totalcut Concept is a brand new way of thinking in the world of steel. Instead of entire plates,
Proplate delivers pre-cut details ready for welding or assembly. The result is considerably better plate utilization
and lower logistical costs.
Proplate takes overall responsibility for delivery to you or your subcontractors. Meanwhile you have full
control over plate procurement, leftover plates and plate utilization. You could say you put all your eggs in one
basket, and that leads to all kinds of benefits.
SUBCONTRACTORS
Proplate makes sure the customer’s subcontractors
get the right details at the right time.
DELIVERY
Proplate takes overall responsibility
for delivery to you and
your subcontractors.
CUSTOMER
Working with Proplate means
efficient order handling.
Order management
PLATE MANUFACTURER
Proplate orders customized steel plate for
optimum plate utilization.
PLATE
management
PROPLATE
Proplate takes care of plate management and component
production according to the customer’s wishes.
13

P ROP L A T E TOTALCUT CONCEPT
A three-part concept
that brings all kinds
of benefits
12 m
3 m
The plate is utilized optimally through production coordination and planning.
More efficient transport, shorter lead times and just-on-time delivery are just some
of the benefits of the Proplate Totalcut Concept.
Cutting Material Wa ste
Optimum plate utilization
minimizes waste
The more details you have to choose from, the better a particular
dimension of plate can be utilized. To make production even more
efficient, Proplate specially orders blank plates in tailored dimensions,
adapted to the details that need cutting. This means that the
material can be utilized optimally, resulting in the lowest possible
waste.
Many companies have their own plate stocks, as well as stocks
located with several subcontractors. This makes it hard to have full
control of the overall stock situation and to be flexible with where
the plate is needed most. The Proplate Totalcut Concept reduces
uncertainty through clear, transparent reporting, and flexibility
increases as the plate is in the same place.
Imagine that each subcontractor has a number of details that
need to be cut from a single plate dimension. Now compile all
these details and gauge how many permutations there are for
ensuring the best possible plate utilization. This is exactly what
Proplate does! We then deliver the cut-out details having used the
plate in the most efficient way.
Cutting Logistical Costs
Proplate coordinates deliveries and
takes care of plate management
The Proplate Totalcut Concept also entails efficient order
management. This means that Proplate handles contacts with
plate suppliers and subcontractors, and makes sure the right
components end up in the right place. Quite simply, we take care
of your order and manage the job. Coordinated transport of cutout
details means that fewer trucks need to be used. This not only
reduces transport costs considerably, but also has less impact on
the environment. The customer is constantly informed of what is
happening and has full insight into the order flow.
14

P ROP L A T E TOTALCUT CONCEPT
>> Benefits for you,
the customer
– Lower plate costs
– More efficient plate utilization
– More efficient plate management
A prestudy essentially enables
us to identify full potential in the
customer’s operation.
Proplate has cutting tables that allow multiple plates to be laid out. While one plate is
being cut, details can be picked off and the next plate prepared for cutting.
Cutting 24/7
Large-scale cutting means flexibility,
quality and high capacity
Where others optimize their operations on machining and assembly,
at Proplate we optimize our operation on cutting. Large-scale
cutting and machinery that runs round the clock lead to several
benefits. Proplate works to long-term forecasts and can co-plan
the production of large quantities of details. In addition to excellent
material utilization, this ensures industrialized production
with cutting machines that enable double plates to be laid out, as
well as both long and wide plates.
Customer benefit is key to our entire operation. Investments
in new machinery and new technology should always benefit our
customers. We deploy Cutting 24/7 with cutting machines that
run round the clock. Proplate also continuously invests in the
latest cutting technology, and our experienced cutting operators
ensure the machines produce the highest possible quality. Thanks
to distinct customer focus and a commitment to efficient logistics,
we can also offer greater flexibility and higher precision.
Proplate Prestudy
A prestudy shows how much
the customer has to gain from
the Proplate Totalcut Concept
Proplate Prestudy is just as natural a part of the process as
other planning and production. It is important to us that
the customer feels secure in the decisions that are made.
It is also important to be able to measure the effects of a
decision such as introducing the Proplate Totalcut Concept.
There is often tremendous potential in improved plate
utilization, more efficient logistical solutions and streamlined
administration. The Proplate Totalcut Concept also
provides an overview that reduces uncertainty surrounding
overall plate management – something that can be hard to
gauge without analysis.
In a Proplate Prestudy we analyze the customer’s present
process flow with regard to number of subcontractors,
plate procurement, plate utilization, number of items in
different dimensions, transport, order management and
other factors. Then, alongside the customer, Proplate draws
up a proposal on how things could work according to the
Proplate Totalcut Concept.
The result of the prestudy is a concrete proposal that
indicates effects, preconditions and a possible approach for
implementing the Proplate Totalcut Concept.
15

P ROP L A T E STRAPS
Proplate specializes in
very large, complex straps
Production of Proplate Straps
We think we can safely say that Proplate Straps are the world’s best
straps – but we want to be even better. That’s why we work actively
on development alongside our customers and plate suppliers
to make even better straps in the future.
> The strap is cut out of the plate. > Careful grinding and blasting to customer
specifications.
> Double or triple straps are fixed together using a clamp.
16

P ROP L A T E S T R A P S
In just a few years, Proplate has become the world’s
leading producer of straps for the crane industry. Liebherr,
Manitowoc, Sany and Fuwa are just some of the well-known
customers in Europe, China and the US.
World leaders in straps
Straps are absolutely crucial components in crane manufacture,
particularly for crawler cranes that can often lift loads of up to
3000 tons. The straps connect counterweights and frameworks.
The quality demands are high, nothing can go wrong, which is
why the tests are rigorous.
The straps can be anything from 1 to 16 meters long and 10
to 70 millimeters thick, depending on construction. They can
be single straps, or joined together in twos or threes. The biggest
strap we have made to date weighs 1.5 tons, and the longest is 16
meters.
Quality steel is fundamental to success
To ensure consistent high quality in Proplate Straps, we only use
the highest quality materials. The Proplate strap factory is right
next door to SSAB in Oxelösund, eastern Sweden. SSAB is a
world leader with its special Weldox steel, which is ideal for making
straps. We also work with other plate suppliers such as Thyssen,
Dillingen and JFE.
Proplate has invested heavily in cutting and machining equipment
so that we can deliver the highest quality straps. A quenched
and tempered steel that is intended to return to its original shape
after severe strain is hard to handle – especially when producing
Straps are critical components in
crane manufacture, and can be
anything from 1 to 16 meters long.
long straps that can easily twist or curve when being cut from a
plate. Proplate solves this problem by cutting under water to ensure
there is as little heat impact as possible on the steel, which in
turn makes for straighter, more easily handled straps.
The latest investments are machines that make holes in the
straps with extremely fine tolerances. The machines are also specially
adapted for making straps as efficiently as possible, so while
one strap is being machined new ones are being loaded, ready to
be fed through and machined.
Proplate means efficiency
To ensure the greatest possible efficiency, Proplate works closely
integrated with the customers’ production processes and MPS
systems. Long-term forecasts govern the procurement of plate and
planning of efficient plate utilization. By applying the Proplate Totalcut
Concept, plate utilization can be improved the more items
and greater the volumes handled by Proplate.
> The strap is machined according to
specification and control measurements are taken.
> Painting in line with the customer’s
strict requirements on function and
environmental considerations.
> Careful packing to protect the straps from
scratching and other damage.
17

P ROP L A T E L i e b h e r r
PROPLATE
HELPS LIEBHERR
ENHANCE
EFFICIENCY

P ROP L A T E L i e b h e r r
More efficient plate utilization, higher delivery
reliability, less administration and guaranteed
quality. These are four positive effects that German
company Liebherr enjoys thanks to its close
collaboration with Proplate.
Dag Kryzaniak, Head of Business Development for Germany at Proplate.
Proplate keeps its promises
German crane giant Liebherr was the first company to make use
of all the benefits inherent in the Proplate Totalcut Concept.
“We can handle Liebherr’s tough requirements, both in terms
of quantity and quality. For Liebherr’s production we cut and
machine high-strength and quenched steel, areas we are experts
in,” says Dag Kryzaniak, Head of Business Development for Germany
at Proplate.
Replaced seven suppliers
Proplate has replaced seven subcontractors and is now the sole
supplier of straps and links for Liebherr’s largest Crawler Cranes;
320 items that are all handled by Proplate. Proplate also deals with
all plate management and all deliveries. An average of three trucks
fully loaded with Proplate-cut details arrive at Liebherr every
week, always at the right time to be used directly in the production
of new cranes.
By implementing the Proplate Totalcut Concept, Liebherr has
a true partner in Proplate. In fact the collaboration is so close that
Proplate is even part of Liebherr’s supply chain.
“We continuously receive forecasts of their needs and can
therefore plan much further ahead than normal. This means we
can utilize the plates optimally and thereby streamline production
as far as possible,” says Dag Kryzaniak.
Lower environmental impact
Needless to say, more efficient plate management not only leads
to less waste and greater financial gain. Because Proplate also deals
with logistics, transport can also be coordinated so that fewer
trucks are used for detail deliveries.
“This obviously reduces environmental impact, which is an
important goal,” says Magnus Bårdén, Deputy CEO of Proplate.
“This is one of the fundamental ideas behind the Proplate Totalcut
Concept, that there are gains to be made in several areas, and not
only financially.”
A relat ionship that opens doors
The partnership also has many benefits for Proplate. For instance,
it gives Proplate an opportunity to develop its concept.
“We face the task with humility,” says Dag. “It means a lot to
us to have this close relationship with Liebherr. It makes us better,
while we are also the best partner for Liebherr. Because we are
proactive and constantly suggesting improvements, our collaboration
is developing all the time.”
Wolfgang Hentschel of Liebherr agrees:
“Proplate impresses us. Thanks to their dedication and our
close collaboration, we can find the best solutions together.”
“You could say that Liebherr opens doors for us as well. Everyone
in the industry knows that they’re the best. And when people
find out that Proplate works closely alongside Liebherr, it stimulates
their curiosity about what we can do,” Dag explains.
>> About Liebherr
Liebherr is a family-run company founded in 1949 by Hans
Liebherr. Today it is not only one of the world’s leading manufacturers
of cranes, but also a well-known supplier of technically
innovative and user-friendly products in a wide range of areas.
Over the years the family-run company has grown into an entire
corporate group, which now has some 32,000 employees and
operations in more than 120 companies worldwide.
19

P ROP L A T E F I N A N C I A L G O A L S A N D S T R A T E G I E S
Ambitious goals for
serious growth
Financial goals
- Proplate has ambitious growth goals with good profitability.
Expansion over the past five years has taken place with profitability,
and we place great importance on continuing in this vein
in future.
- Proplate’s long-term goal is to achieve net sales of SEK 1 billion,
which means approximately SEK 500 million in refinement
sales. Profit after depreciation, amortization and financial items
shall be at least 20% of refinement sales over a business cycle.
Strategy for high growth
- High growth is achieved through a focus on sales and marketing.
Proplate will concentrate on being a partner to major global
customers, closely integrated in their production processes.
Sales and marketing efforts will primarily be centered on the
crane industry, mining, construction machines and recycling.
- All offerings from Proplate should be characterized by close
customer relations on all levels (understanding the customer),
productivity and professionalism in production and distribution
(logistical efficiency) and in-depth technical know-how when it
comes to choice of materials, cutting techniques and technical
design (technical efficiency).
- Proplate values a culture where the individual employee strives
for continuous improvement and feels active in the company’s
development.
- Dedicated, professional leaders are crucial to our success internationally.
- Proplate shall be quality and environmentally certified. Striving
for sustainable development in the world is a natural business
opportunity.
- Proplate will primarily expand internationally by establishing
sales and production companies on attractive markets such as
China, the US, Brazil and India.
20

P ROP L A T E F A C T O R S D R I V I N G S A L E S
Proplate is delivering 16-meterlong
straps for the new Swedbank
Arena in Stockholm. The straps are
specially designed to be part of the
bearing roof structure. The facility
will be finished in 2012 and will be
the biggest and most modern arena
in Scandinavia.
Smart logistics and better plate
utilization generate demand
Global industrial customers are
striving to be more profitable through
efficient plate utilization and logistics.
More and more of our customers are
tending towards a situation whereby
they only carry out final assembly on
their products. This places extensive
requirements on dependable,
professional subcontractors.
Ultimately it means a higher demand
for services produced by Proplate.
After a deep recession that has affected
many of our customers palpably, the focus
now is on reducing uncertainty in production
and future business. The availability
of plate is an uncertainty factor for many.
This applies particularly to plate made
from high-value material that can only be
produced by a few manufacturers in the
world.
The more subcontractors a customer
uses, the harder it is to keep an eye on
plate requirements and efficient plate
utilization. If there is a shortage of plate
with one supplier, that shortage cannot
be made up by redistributing orders bet-
ween subcontractors. Using the Proplate
Totalcut Concept entails a shared stock of
plate, greater flexibility and considerably
higher delivery reliability.
Lack of dependable
subcontractors
It is also evident that this latest recession
has clearly had an impact on many subcontractors
around the world. When the
market turns around, which we believe
it is now doing, there will be a lack of
dependable subcontractors. Many will not
have the equity to be able to grow after
slimming down their organizations so
dramatically. Many have gone bust. Proplate
remains strong and has also carried
out investments during the recession, and
this will create major opportunities on the
market in the years to come.
New energy drives sales
The crane industry is developing very
strongly thanks to investments in wind
power, the extension of new energy plants
– such as nuclear power – and major infrastructure
initiatives.
The markets in China, India and
Brazil are making a particular impact
with high rates of growth. Consequently,
the number of companies making large
cranes is increasing significantly, especially
in China. Companies with experience of
making sophisticated components from
high-value materials are in demand, which
opens up new business opportunities for
Proplate.
Furthermore, the demand for raw
materials is also increasing. Consequently
new mines are opening, and activity at
existing sites is increasing. We believe that
demand will increase even more in the
next few years bearing in mind the approaching
prosperity.
More efficient transport for
susta inable development
In the future, costs for transport are expected
to increase dramatically, through
higher taxes and charges, in order to accelerate
efforts towards sustainable development.
However, the use of resources is
no longer solely a question of economics.
More and more companies are placing
priority on more environmentally friendly
actions that make better use of resources
and reduce emissions. This is creating
strong new companies in the recycling
industry, which in turn will be looking
for efficient, sustainable solutions for their
production plants.
21

P ROP L A T E ON THE CUTTING EDGE
proplate
On the
cutting
edge
> We think
innovatively
Tamara Campos
Cutting operator
“We cut plate under water to reduce
heat impact on the material. This
improves quality and also makes for a
good work environment.”
> The bigger
the challenge,
the better
Emil Jönsson
Project engineer,
Proplate Straps
“The bigger, harder, thicker and more
complex – the more enjoyable. We
relish challenges and solving problems.”
> Latest
technology
goes without
saying
Johan Björklund
Financial Manager
“We are continuously investing in
one of the world’s biggest and most
modern cutting plants for thick sheet
metal. So the latest technology goes
without saying.”
> Everything we
do creates value
Zuzana Jansson
Administrator
“We work hard to develop the value
of our business propositions. Our
latest concept means better material
utilization and lower costs for logistics.
Good news for our customers and the
environment.”
22

Only the best
is good enough
Mattias Skeppstedt
Business Area Manager Proplate Straps
“We deliver critical details to some of the world’s biggest
and most demanding crane manufacturers.”
> Anything
is possible!
Johan Törnqvist
Business Area Manager
Proplate Totalcut Concept
“If it’s possible and we can do it, we want
to do it! If it’s impossible, ask us to take a
look anyway!”
> The latest IT
develops our
business
Henrik Nordlöf
IT Manager
“We are a natural part of our customers’
supply chain. This means that in
our business system we handle orders
and forecasts taken directly from our
customers’ planning systems.”
> We have the
commitment
Enrique Hernandez
Cutting operator
“We have the energy and the commitment.
That’s how we are developing
a unique, global engineering
company.”
23

P ROP L A T E B O A R D O F D I R E C T O R S A N D G R O U P M A N A G E M E N T
Board of Directors
Hans Åke Norås
(1944) Chairman of the Board.
> Board assignments in Ostnor AB (Mora Armatur, FM
Mattsson), Bergkvist-Insjön AB, Säkerhetsföretagen AB,
Mora of Sweden AB and Pharmadule AB. Previously
CEO of Atle Industri AB. Hans Åke Norås has previously
worked for SSAB. He has held several chief executive and
board positions in the engineering, construction material,
wholesale trade and consulting sectors.
Anders Persson
(1957) Owner, Proplate Group.
> Fourth generation entrepreneur and market economist.
Anders Persson has worked in steel and IT and was
previously CEO and owner of Smidesbolaget L. Persson AB
in Degerfors and Proplate IT AB.
Esbjörn Löfstrand
(1952) Board member.
> Owner of and active in consulting firm Fundamental
Analys ELD AB since 1998. Board assignments include
Drillcon AB. Esbjörn Löfstrand’s previous career includes
CEO and co-owner of a builder’s merchant company,
authorized public accountant and Deputy CEO of the
Hasselfors Group.
Peter Eklund
(1958) Board member.
> CEO of Bergkvist-Insjön AB. Board member of Axel
Bergkvist AB and associated companies of Bergkvist-Insjön
AB: Hebeda Trä AB, Hedin-Bergkvist AB, Weda Skog AB
and Naturbränsle i Mellansverige AB. Has now and has
previously had external board assignments for Folkebolagen
AB, Rättviks Sågverk AB and Nordhydraulic AB.
Group Management
Max Björk
(1965) CEO, Proplate Group.
> Max Björk has previously been president of several of the
Group’s companies. He has also been a regional manager
for Knight industriteknik AB, Deputy CEO of the Lesjöfors
Group, and CEO and owner of Projektledarna. He now
has board assignments within the Group’s companies.
Previous board assignments include various companies in
the UK, Norway, Denmark, Finland and Sweden. He has
worked in the international engineering industry for his
entire career to date.
Magnus Bårdén
(1965) Deputy CEO, Proplate Group.
> Recruited to the Proplate Group in 2007. Before that
Magnus Bårdén has been president of a corporate
healthcare service and run his own project management
company. He has long experience as a manager within
Telia and Ericsson, primarily in service sales, economics
and product development. Magnus Bårdén has an
Executive MBA in International Business.
24

P ROP L A T E O R G A N I Z A T I O N C H A R T
Board of Directors
Group Management
CEO/Vice CEO
Finance/HR/IT/Projects
Business Area
Proplate Straps
Business Area
Proplate Totalcut Concept
- marketing
- production
- quality
- marketing
- production
- quality
Proplate is organized into two
integrated business areas
Business Area Proplate Straps is responsible
for the sale and production of Proplate Straps,
which is the company’s niche product. Proplate
Straps buys cut-out details from Business Area
Proplate Totalcut Concept in order to optimize
plate utilization in cutting out strap details.
Business Area Proplate Totalcut Concept
is responsible for the sale and production of
cutting for in-house manufacture, but primarily
for large customers with demands on efficient
plate utilization and logistics. The business
areas are supported by units for finance, HR,
IT and project management.
The Group is led by a management team
comprised of the CEO and Vice CEO, both of
whom work to guidelines from the company’s
Board of Directors, of which the Group’s owner
is a member.
25

P ROP L A T E D E S C R I P T I O N O F O P E R A T I O N S
Description of
operations 2009/2010
Market
In 2009/2010, the company evolved its long-term strategy of
moving from many small to fewer large customers. The number
of large and potentially large customers increased, primarily in
Business Area Proplate Straps. Three new, large international strap
customers in China and Germany were added to the customer
list. Several new strap customers in China have been added at the
beginning of the 2010/2011 financial year.
Since the launch of the Proplate Totalcut Concept active market
cultivation has been carried out, resulting in several interesting
prospects. After a year of low production rates, formatting of plate
for SSAB has rapidly increased to levels similar to those before the
recession of 2009.
Thanks to active market cultivation during the recession, Proplate
has quickly been able to expand its business to ensure that
net sales and refinement value will increase significantly on the
previous year.
Economy
The recession forced Proplate to take swift, painful action with
regard to cost cutting in 2009/2010. Production stages previously
outsourced with subcontractors were brought in-house. All temporary
personnel were dismissed, as were several permanent employees.
Several changes were also carried out at management level
with the aim of ensuring the right people were in the right place
in a tough market situation.
The swift changes produced results and laid a good foundation
for continued growth. The company came through the 2009/2010
recession with a positive result, lower stocks and increased productivity.
A well-filled order book and a streamlined organization
quickly leads to a better bottom line. The start of the 2010/2011
financial year is the best in the company’s history, and the outlook
for the year as a whole is very bright.
MSEK
300
MSEK
30
250
25
200
20
15
150
10
100
5
50
06/07 07/08 08/09 09/10 10/11
0
06/07 07/08 08/09 09/10 10/11
NET SALES
REFINEMENT VALUE
PROFIT AFTER FINANCIAL ITEMS
Forecast
26

Personnel
Sick leave in 2009/2010 amounted to 2% as a percentage of
standard working hours. Proplate values its dedicated employees
highly and conducts active personnel care. Personal health
checks are carried out annually. For Proplate it is important to
understand the customer’s needs and circumstances, and it is therefore
Proplate’s aim that every employee should have visited one
of the company’s major customers. Proplate actively participates in
the Margit training initiative which is funded via the EU and carried
out by Campus Nyköping.
During the year, particular initiatives have been taken in
workwear and the physical work environment with regard to
heavy lifting.
Quality
External quality and environmental audits were conducted during
the year by DNV. The audits resulted in retained certification for
Proplate to ISO 9001:2008 and ISO 14001:2004.
KSEK
120
1500
100
1200
80
900
60
600
40
20
300
0
06/07 07/08 08/09 09/10 10/11
0
06/07 07/08 08/09 09/10 10/11
NUMBER OF EMPLOYEES
REFINEMENT VALUE/EMPLOYEE
Forecast
Forecast
27

FINANCIAL
STATEMENTS
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR MAY 1, 2009 – APRIL 30, 2010
PROPLATE AB
REGISTERED NUMBER 556643-3867
Contents
Board of Directors’ Report 31
Balance sheet – Group 34
Pledged assets and contingent liabilities – Group 35
Cash flow statement – Group 36
Income statement – Parent Company 37
Balance sheet – Parent Company 38
Pledged assets and contingent liabilities – Parent Company 39
Notes with accounting principles and notes
to the financial statements 40
Signatures 49
30

Board of Directors’ Report
The operation in general
The Board and President of Proplate AB, company registration
number 556643-3867, based in the Municipality of Karlstad,
Sweden, hereby submit the Annual Report and consolidated
financial statements for the financial year May 1, 2009 –
April 30, 2010.
Group structure
The company is a subsidiary of A Persson Affärsutveckling AB,
company registration number 556341-4332.
Proplate AB is the Parent Company of a Group with the subsidiary
Proplate Oxelösund AB. Dormant subsidiaries are Proplate
Material- och Produktionsstyrning AB and Proplate Mekanik AB,
which was previously integrated into Proplate Oxelösund AB and is
now being wound down through voluntary liquidation.
The company’s operations
The company’s operations comprise services such as Group
management, and marketing and sales for the subsidiary. The
subsidiary manufactures machinery components from metal plate,
chiefly thick high-strength steel.
During the first part of the financial year, the Group’s business
was affected by low demand globally. However, the market situation
improved during the latter part of the financial year. Due to
previously carried out capacity adaptations, profitability can be
achieved at lower volumes.
73% of Group sales were exports. Establishment on the Chinese
market has been successful; several customer relations have been
established and capacity at the Shanghai office is under expansion.
In Oxelösund, investment in expanded machining capacity was
completed during the financial year. Proplate Oxelösund AB now
has the same President as its Parent Company Proplate AB.
Group sales and production for the forthcoming financial year
(2010/11) are expected to continue to increase, favored by the
market recovery since the end of 2009.
Use of financial instruments
For a description of the use of financial instruments, please refer to
the accounting principles and notes to the financial statements.
Environmental information
The subsidiary Proplate Oxelösund AB carries out activities
requiring notification under the Swedish Environmental Code.
The company’s operation is completely dependent on this
permission being granted. The company has quality and
environmental management systems certified to EN ISO
9001:2000 and EN ISO 14001:2004.
Five-year review
The Group was formed through an inter-company reorganization
on April 30, 2008. Consequently, there are no comparison figures
from previous years.
31

P ROP L A T E o w n e r p o r t r a i t
THE CUSTOMER-
ORIENTED
MASTERsmith
>> First there was one mastersmith.
Then another. And then yet another.
After those 100 years or so, Anders
Persson entered the scene.
“Clearly today’s Proplate operation
is very different from my greatgrandfather’s
village forge. Even so,
some things haven’t changed: the spirit
of entrepreneurialism and our continued
efforts to adapt and develop the
operation. I’m also a mastersmith, in a
way. A customer-oriented mastersmith.”
50

Steel in his blood
Anders Persson, sole owner of Proplate, has steel running through
his blood.
He grew up in the industry, as did his father and grandfather.
It all began back in 1869 when Per Andersson, Anders’ greatgrandfather,
was awarded his master craftsman’s diploma. As a
newly qualified mastersmith, he started up his own business.
“He was the village blacksmith and carried out various jobs
for the local community, everything from shoeing horses to repairing
farm machinery.
Obviously he was customer-oriented, it was a necessity.”
By the turn of the century Levi Persson, Anders’ grandfather
and son of Per, had established his forge operation in Degerfors.
It came to be influenced and characterized by the two world wars
that raged during Levi’s lifetime.
“Grandfather’s operation was more industrialized. For example,
he converted vehicles so they could run on alternative fuels
– producer-gas vehicles.
Anders’ father, Gunnar Persson, was the family’s next generation
of mastersmith. He was the one who developed the company
in line with the business concept Proplate lives by today. His idea
was to create a Steel Service Center, i.e. an external supplier of
services in plate machining, which came to replace many of the
workshops that users of thick sheet steel used at the time. No such
thing existed when the innovator Gunnar Persson started up his
business in the 1950s.
Concept with two winners
“It was a competitive initiative which restructured the steel industry
at the small-scale level and increased the industry’s efficiency,”
says Anders Persson. “The basic idea is the same as the concept we
work in line with at Proplate today. We do what we are good at,
and our customers do what they are good at. And we both win
from that.”
The old cliché goes that the first generation of a family company
starts the company and builds it up, the second generation
manages it, and the third destroys it. That is certainly not the case
with what is now Proplate, but the question remains: What is the
fourth generation doing?
Well, it is evolving the company, establishing it globally, making
it even more efficient and customer oriented.
These were the prospects that Anders Persson saw when, as a
student of economics, he conducted a market analysis of his father
Gunnar’s company Smidesbolaget i Degerfors, as Proplate was
called at the time.
“I had an epiphany and realized the potential of our concept
and our expertise.”
And the rest, as they say, is history. Proplate is riding on a
wave of success and has a well-earned global reputation as a highquality
supplier on many levels. And that’s not all.
We start talking about Anders’ own drive and how he is making
his mark on the company. He is no longer involved on an
>> For the time and money it would
have cost to prepare and analyze setting
up a business by the book, we built up
our operation over two years, employed
a salesperson and gained several
customers.
operational level but is more ‘strategically active’, as he puts it.
“I enjoy working globally and we have a business concept that
works very well worldwide. I have always been export oriented.
It works very well for a steel company that’s based in Sweden
but operates globally.
“When I took over my father’s business it felt like a duty. That
feeling swiftly melted away when I carried out the market analysis
and realized the enormous potential that existed. We are doing the
right things, manifestly. Surely it’s difficult to feel anything other
than satisfaction?”
He continues:
“As an entrepreneur it’s important to be professional, you
can’t run a company as a hobby. Do that and there’ll be no development.
I’ve always found a great intrinsic value in a company
developing.”
Going his own way
Anders Persson is of course aware that problems can always arise
in business. Even so he chooses to focus on the opportunities, and
sometimes takes an unorthodox approach to take those opportunities
to fruition. Take China for example.
“Rather than reading and paying out large sums of money for
market surveys, we went there. We wanted to get our own idea
of the country, and above all what the Chinese are like as people.
After all, they’re the ones we’ll be doing business with. We visited
potential customers and then employed Joe Huang, and we built
up the operation from there.
“For the time and money it would have cost to prepare and
analyze setting up a business by the book, we built up our operation
over two years, employed a salesperson and gained several
customers.
The way I see it, that was effective.”
And what is the main knowledge he feels the company has
gained from its time in China?
“That it’s not all that hard to do business with the Chinese.”
More than 140 years have passed since his great-grandfather
started a local blacksmith’s forge.
What would Per Andersson think of Proplate?
“He would love the drive and the corporate culture, but he
wouldn’t recognize much else,” Anders says.
But he pauses, and raises a finger as if to emphasize the importance
of what he’s about to say.
“Well, there is one other thing he would certainly recognize:
That the customer is king.”
51

Proplate AB
Proplate AB
Universitetsgatan 2
SE-656 37 Karlstad
Tel +46 (0)10 19 54 100
Fax +46 (0)10 19 54 101
Proplate Oxelösund AB
Box 14
SE-613 21 Oxelösund
Visiting address: Folkegatan, Cefast Industrial Estate
Tel +46 (0)10 19 54 100
Fax +46 (0)10 19 54 102
Proplate Shanghai
Rm. 6312, West Bldg. Jinjiang Hotel
59 Maoming Rd. (S).
Shanghai. P.R.C. 200020
Tel +86 (0)21 54661712
Fax +86 (0)21 64152081
www.proplate.se
52

PROPLATE
OXELÖSUND
SWEDEN

Proplate AB
Universitetsgatan 2
SE-656 37 Karlstad
Tel +46 (0)10 19 54 100
Fax +46 (0)10 19 54 101
www.proplate.se