CEO’S COMMENTS aware of what needs to be done and a number of necessary initiatives are currently under way in all parts of the division. In order to generate satisfactory profitability, we must become more efficient in our principal processes. By virtue of its service operation, Door & Logistics Solutions enjoys a unique position in the market, and I am convinced that we will succeed. As far as Residential Garage Doors is concerned, we have long been saying that this is under review, since it does not target industrial customers as does the rest of Cardo. Despite being subject to competition in a tough sector, it managed to turn the business around from the losses of previous years to achieve a respectable plus of SEK 31 million for 2007. THE FUTURE IN OUR HANDS Across the Group, great efforts are being made every day to achieve our goals. I wish to thank all our people for these efforts during 2007. It is all of Cardo’s people who are creating the new Cardo. Developing our employees and managers is one of our most important instruments to improve the Company in the long term. During 2007, we implemented a number of measures to further strengthen our focus on implementing the strategies and further developing the processes. We are working actively to implement the Group’s value base, reinforce internal communications and, not least, strengthen our management on all fronts. Strong leadership is one of the absolutely key factors as far as driving a continued positive trend for Cardo is concerned. Our aim is clear, but the way there involves many challenges. Together with Cardo’s more than 6,000 employees, I have accepted the challenge of creating a successful company in the long term. During 2008, our main focus is on improving margins and cash flow. We are determined to deliver in line with our long-term goals. Malmö, Sweden, in March 2008 Peter Aru, President and CEO CARDO ANNUAL REPORT 2007