Cardo’s Capital Markets Day 2007: Cardo Dveloping According to Plan

This was the message delivered at 12- th of June by Cardo's President and CEO Peter Aru at a Capital Markets Day in Stockholm. "Cardo's strategy involves targeting large international and national customers and a greater focus on value-adding solutions, where service is an important business driver for continued growth," emphasized Peter Aru. "We can see that the implementation of the new strategy is going according to plan and that the group has been able to report increased growth seven quarters in a row(...) An important contribution to growth will be made through our increased presence in the new emerging markets in Asia, eastern Europe and Latin America. Compared with the previous year, half of the increase in the inflow of orders during the first quarter of 2007 came from markets outside the EU," declared Peter Aru. The operations and markets of the divisions were presented in more detail by the heads of the divisions.

Doors & Logistics Solutions

Fredrik Jönsson is in charge of Cardo's largest division, Door& Logistics Solutions, which focuses on solutions for transport, logistics and retail, marketed under the name Crawford. He described an underlying market with solid growth driven by new global distribution patterns. In addition, the division is growing through increased market shares as a result of the new strategy, which includes a more focused sales organization, increased geographical expansion and an even stronger range of service offerings, involving, among other things, intensification of efforts in servicing automatic door systems for pedestrian traffic.

Wastewater Technology Solutions

Tomas Wängberg, who recently took over as head of Wastewater Technology Solutions, also reported a positive earnings trend, as a result of, among other things, a greater focus on solutions in the field of wastewater collection and treatment. Solutions are marketed under the ABS brand. Tomas Wängberg emphasized the great potential in the markets in which ABS operates, focusing on the global climate issue, environmental legislation and economic development bringing an increased need for clean water and investments in infrastructure.

Pulp& Paper Solutions

Peter Uddfors is head of the Pulp& Paper Solutions division, which supplies sophisticated solutions for the pulp and paper industry in the fields of process flow systems and process optimization. He talked about the modern, updated portfolio of process pumps and advanced measuring instruments that are marketed under the renowned Scanpump and Lorentzen & Wettre brands. The division, which experienced a somewhat weaker trend during the fourth quarter last year, once again showed a positive earnings trend during the first quarter of this year.

Residential Garage Doors

Ove Bergkvist, who leads Residential Garage Doors, talked about the major sales successes with the new g60 and Euro series doors and described a better market situation. The increased sales volumes together with a better capacity utilization in production and a number of efficiency measures have, after a prolonged period with negative earnings, contributed to improved profitability.

Peter Aru confirmed that since the activities of this division do not target industrial customers, Cardo's commitment is, as has been announced previously, under review, and continued: "Our intentions regarding Residential Garage Doors remain the same. Taking the good earnings trend into consideration together with our ambition to maximize value for our shareholders, we aim at finding a solution during 2008." In summary, the message to the analysts, investors and journalists who took part in the Capital Markets Day together with representatives from Cardo's group management team was that developments are going according to plan and that the new Cardo is emerging- an international, streamlined industrial group with strong brands, offering market-leading products and value adding solutions to selected customers. Good market positions, leading brands and financial strength provide conditions for continued success for Cardo.

About the company

Cardo is an international industrial group with leading brands, offering solutions with quality products, a high level of service and great applications know-how to industrial customers. Operations are pursued in the group's divisions: Door& Logistics Solutions, Wastewater Technology Solutions, Pulp& Paper Solutions and Residential Garage Doors, which all enjoy strong positions in their respective markets. The group has approximately 5,900 employees in more than 30 countries and sales of approximately SEK 8.6 billion. Corporate headquarters are located in Malmö, Sweden. Detailed information about the company is available on: www.cardo.com