CONTINUED GROWTH IN 2007 HIGHLIGHTS RESULTS .. Inflow of orders: SEK 9,459 million (8,840), up 8 percent adjusted for the effects of exchange rate movements .. Net sales: SEK 9,308 million (8,556), up 10 percent adjusted for the effects of exchange rate movements .. Operating earnings excluding items affecting comparability: SEK 731 million (598) .. Net earnings including items affecting comparability: SEK 170 million (401) .. Earnings per share: SEK 5.67 (13.38) .. Proposed dividend for the financial year SEK 9.00 (SEK 9.00) per share INFLOW OF ORDERS SEK million 10,000 8,000 6,000 4,000 2,000 2005 2006 2007 OPERATING EARNINGS AND OPERATING MARGIN1) SEK million % 800 6 8 600 4 400 2 200 0 0 2005 2006 2007 Operating earnings Operating margin SIGNIFICANT EVENTS .. Strong growth in countries outside the EU with .. Wastewater Technology Solutions signs global strongest trend in Asia-Pacific and Latin Amer-agreement with world’s largest water company, ica the French enterprise Veolia .. Big breakthrough in relation to major interna-.. Pulp & Paper Solutions launches instruments for tional key accounts measuring paper quality and new service con- .. International service agreements with a number cept for process pumps of key accounts in Door & Logistics Solutions Residential Garage Doors doubles the number .. .. New production unit for docking solutions estab-of exclusive retailers in the Nordic region and lished in Romania Europe and introduces two new doors .. Acquisition of rights to solutions for horizontally sliding doors NET SALES GROWTH RATE OF NET SALES SEK million % 10,000 10 8,000 8 6,000 6 4,000 4 2,000 2 0 0 2005 2006 2007 2005 2006 2007 Organic Acquisitions RETURNS1) EARNINGS & CASH FLOW PER SHARE % SEK 18 15 16 14 12 12 9 10 8 6 6 4 3 2 0 0 2005 2006 2007 2005 2006 2007 Return on capital employed Earnings Return on equity Cash flow from operating activities after tax 1) Excluding items affecting comparability. CARDO ANNUAL REPORT 2007