TPPG - Annual Report 2015

THE PERIMETER PROTECTION GROUP
ANNUAL REPORT 2015

TABLE OF CONTENTS
CEO section 1
Chairman of the board section 2
TPPG in summary 4
TPPG vision, mission and strategy 5
Market 7
Products and service 13
Brands 17
Environmental, social and corporate governance 18
Organisational structure 19
Owners 20
Members of the Board 21
Formal annual report 22
Approval of the board 59
Contact 61

TPPG is continuously working towards strengthening
the organization and to further improve the market
position in the core markets in Europe, as well as in
other markets. Significant improvements have been
made in all operations in Germany, France, Denmark,
Finland and Sweden. These improvements include
areas such as production, sales structures and offer-
ings as well as administration. The overall staff situa-
tion has been restructured to suit the needs of these
strategies as well as the needs of the market.
The major and most significant change of the com-
pany has been to refocus the product mix and our
combined offerings for clients seeking high security
solutions. In most of our marketplaces, we are seeing
an increased threat to the public as well as to various
forms of sites covering both office- and residential
buildings as well as infrastructural projects. Our cli-
ent base is slowly shifting towards public authorities
such as ministries, police-, security- and military-fa-
cilities with a very high and sophisticated need for
tailor-made security solutions. The combined re-
search and knowledge within TPPG serves well the
needs and requirements of the most sophisticated
and demanding clients.

TPPG has under the new ownership and manage-
ment started a journey which we strongly believe
will improve our market position, and meet the glob-
al needs of high security.
Bengt Pihl,
CEO
CEO section
HE PERIMETER PROTECTION GROUP AB (“TPPG”
or the “Group”) is the holding company and
owner of all subsidiaries within TPPG. The
core activity of TPPG is to own and manage the sub-
sidiaries and to implement a group strategy based
on a number of core values. The operation in its cur-
rent form, started in September 2011 at which time
the previous owner, Gunnebo Holding AB, sold TPPG
with all activities to Procuritas Capital Investors IV
(PCI IV). On December 22, 2015, TTPG was acquired
by Strandbaden Svanshall Intressenter AB (“SSI”)
which is domiciled in Stockholm, Sweden. As a part
of the share purchase agreement, it was agreed that
the Parties would engage in a number of activities in
order to strengthen the Group. This included, among
other things, the forgiving of claims by PCI IV as well
as a further capitalization by the new owners.
The core activities of the Group consists of produc-
tion, sales, installation and service of products for
outer perimeter protection. The clients of TPPG are
found within a variety of industrial companies, real
estate and construction companies, logistic cen-
ters, airports, harbors, nuclear stations, public util-
ities and functions as well as embassies and other
government facilities. These clients have different
levels of security requirements, stretching from ba-
sic perimeter protection i.e. fence, boom and gates
to more sophisticated high security applications. In
addition, TPPG puts significant emphasis on service
and client support.
TPPG has 350 employees in five European countries
as well as distributors in 50 countries around the
globe.
C E O S E C T I O N
T
THE PERIMETER PROTECTION GROUP ANNUAL REPORT 2015 1

Some bidders, including TPPG’s owner SSI, showed
an interest, but all were subject to the scrutiny and
validation of the Group’s main bank relation.
After a process which almost took half a year, SSI
could eventually acquire the shares in TPPG and for-
mally become the owner. It should be noted that
during the entire validation process, SSI supported
the Group financially and with operational experi-
ence.
It soon became evident to SSI that despite the efforts
of the Group’s previous owners, a major overhaul of
its operations was needed.
One reason for the problems within the Company
was related to the fact that many areas of the Group
acted independently and with less coordination
than would be optimal.
Therefore, SSI developed a comprehensive turn
around plan which besides detailed action-plans in-
cluded three mottos “Customer First”, “Meeting and
Exceeding Expectations”and “Working Together”.
Chairman of the board
section
PPG CAN TRACE ITS ROOTS BACK SEVERAL CENTU-
RIES, and the brand name used in Sweden -
Gunnebostängsel - is close to being a generic
name for “fence”in the country.
The Gunnebostängsel brand is still very strong in
Sweden and Denmark, but over the years important
brand names like Werra and Wego in Germany and
Eurofence in France have been added to the Group’s
brand portfolio.
Furthermore, elkosta is one of the strongest brands
in the world within the area of high security prod-
ucts.
Despite its strong brand names, the Group has not
fared so well operationally and financially over a pe-
riod of years.
The former owner, a private equity fund, had done a
solid job in reducing costs and supporting the Group
financially. However, they concluded that the Group’s
cash needs, time demands and the time until a suc-
cessful exit was not in line with the demands of the
fund and therefore decided to sell the company.
C H A I R M A N O F T H E B O A R D S E C T I O N
SSI was created with the sole purpose of acquiring the The Perimeter Protection Group or TPPG as we
call the Group.
T

C H A I R M A N O F T H E B O A R D S E C T I O N
At the time of writing this report, we can conclude
that the company is developing better and better.
We have made very significant management chang-
es, removed suboptimal managers and indeed cre-
ated One Kingdom with one Moat compared with
three Duchys who often quarrelled with each other.
Or in slightly more modern lingo - we have razed
three Silos and we are in the process of creating one
unified operation. In the process we will be able to
remove a lot of duplicate positions and functions.
SSI has not in any significant way changed the
Group’s strategy, but rather focused on culture - the
Company’s Board is a strong supporter of the adobe
“Culture eats strategy for breakfast”!
To turn around a loss ridden company is a daunting
and humbling experience. The CEO Bengt Pihl, has
relentlessly pursued many needed actions and the
Board and several advisers had, for several months
during 2015, daily conversations.
Without the support of our suppliers (including fi-
nancial ones!) and customers, we would not be
where we are today. In addition, many advisers and
consultants and of course TPPG’s many employees,
its management and members of the Board have
made massive contributions over the year. A great
“Thank you”to all.
For 2016 and looking forward, TPPG will continue
with the operational restructuring and renovation of
the Company. The Group has a very strong balance
sheet and a high solvency, but due to its poor perfor-
mance it lacks suitable and effective credit facilities.
The board of directors objective is that the Group
in a couple of years time will be a profitable and a
healthy operation delivering “quality on time” to all
its very prominent customers in Europe and around
the World.
A lot of hard work remains, but all of us in the Group
share the resolve that TTPG, by 2020 at the latest,
will have cemented its position as a very profitable
and leading supplier of high quality perimeter pro-
tection products and services in the world!
Mikael Ahlström,
Chairman of the Board

TPPG in summary
THE PERIMETER PROTECTION GROUP (TPPG) is one of
Europe’s leading suppliers of perimeter protec-
tion security solutions through capabilities in ad-
vice, design, supply, installation and maintenance
of products and systems. With a comprehensive
product offering, TPPG is regarded as a one-stop-
shop, offering its clients a full security solution.
Headquartered in Gothenburg, Sweden, and with
two production sites in Salzkotten, Germany, and
Sales by geographical market (2015)
T P P G I N S U M M E R Y
TPPG started as Gunne-
bo Industries in 1764 in
the southeast of Sweden.
Initially, the company
manufactured nails, bolts
and chains. Between 1997
and 2004 the following
brands were acquired:
Wego (Germany), elkosta
(Germany) and Eurofence
(France).In2011Procuritas
Capital Investors acquired
the Perimeter Protection
unit from Gunnebo. In
December 2015 Strand-
baden Svanshall Intr-
essenter AB (SSI) acquired
TPPG from Procuritas.
Doulevant, France, TPPG is able to reach its core
markets. The Group’s core markets in Europe ac-
count for 87% of total sales. Through local sales
offices in Germany, France, in the Nordic countries
and in Switzerland, TPPG is able to fulfill its mission
to be a full service supplier of security solutions.
Sales in other markets represent 13% and includes
Middle East, Asia, Australia and The Americas.
Germany, 39%
Systems, 40%
France, 20%
Sweden, 8%
Denmark, 13%
Finland, 7%
Others, 13%
Services, 16%
Products, 44%
Sales by market segment (2015)

T P P G V I S I O N , M I S S I O N & S T R A T E G Y
TPPG vision, mission and
strategy
VISION
The most innovative and successful perimeter protection company.
BUSINESS CONCEPT
The Perimeter Protection Group is the leading supplier of state-
of-the-art physical perimeter protection and security solutions
through capabilities in advice, design, supply, installation and
maintenance of products and systems. The group consists of well-
known brands and have a high quality product offering. Through
local offices and a comprehensive product offering the group
realizes its value proposition: connectivity, service and access.
MISSION
We take care of your security needs.

T P P G V I S I O N , M I S S I O N & S T R A T E G Y
TPPG´S VISION IS TO BE THE MOST INNOVATIVE AND
SUCCESSFUL PERIMETER PROTECTION COMPANY. To
fulfill this vision, the operational concept evolves
around
• Reorganization
• Modernization
• Value Creation
• Retain profitable parts of
fence business - discontin-
ue rest
• Expand access control and
high security business
• Expand service business
STRATEGIC GOALS
• Improve intra-group colla-
boration to drive capacity
utilisation
GOALS & STRATEGY
This includes, among other things, a strong lead-
ership with a new very seasoned executive team
and a board having an outstanding business re-
cord, a very sharp attention to customers, sales,
cash management and strong focus on the supply
chain, cross-selling and general management.
LONGTERM FINANCIAL GOALS
By 2020 the group expects to have a turnover in excess of
€80m and an EBITDA margin of about 10%
THE FOLLOWING CHANGES ARE
PLANNED FOR 2016 - 2020
• Develop new products
& concepts
• Focus on service
• Increased sales of
existing products
• Identify and complete com-
plementary acquisitions

M A R K E T
Market
TURNOVER BY COUNTRY
& TPPG MARKET SHARES
Nordics 28% 9%
Germany 39% 6%
France 20% 3%
Others 13%
TURNOVER MARKET SHARES

M A R K E T
THE MARKET FOR PERIMETER PROTECTION IS GROWING. Currently the market value for TPPG’s key mar-
kets is estimated to €1.2 bn while the market value for the total European market is estimated to
around €3 bn.
TPPG is a B2B partner with a well diversified customer base. The main channels are wholesalers,
large national and multi-national contractors and also direct sales to large customers.
MARKET
The growth is driven by factors such as increased number of construction projects within com-
mercial industries and infrastructures as well as a global heightened awareness around security
concerns. These drivers have resulted in high level of interest for our products within access con-
trol and high security.
There is a strong trend of moving to higher security. Lighter fencing is replaced with heavier and
higher fences. We also see a higher demand for products like bollards, wedges and truck stoppers.
The estimated annual growth rate for the high security market is estimated to be around 5-10%,
compared to 1-3% for demarcation products like fences and welded mesh. For demarcation, the
products are more or less commoditized while for higher security products, the market require-
ments are more geared to special applications which makes it essential to provide tailor-made
solutions at the highest quality standard.
We also see a strong need for increased service.
GROWTH DRIVERS
GENERAL TREND

M A R K E T
Germany represents 39 % of the
Group´s total revenue in 2015. In-
cluding the manufacturing plant,
46 % of the employees reside in
the country. This makes Germany
a very important region. The mar-
ket in Germany is mostly made
up of residential and industrial &
commercial customers. To satis-
fy market needs, TPPG offers full
product coverage of access con-
trol and high security. The market
is also to a smaller degree made
up of demarcation products like
fences and palisades. With the
expected increase of the need of
high security products and the
local expertise and knowledge
around the elkosta products, we
are very confident that the fu-
ture for the German market place
looks very bright. A stronger focus
on sales activities and the level of
recent order intakes will lead to
a continued growth. The market
in Germany is estimated to be
€550m. which makes it the single
largest market in Europe for secu-
rity products. GPP is the third larg-
est player with 6% of the market.
GERMANY

M A R K E T
France represents 20% of total
revenue and 28% of total employ-
ees 2015. The French subsidiary
operates a manufacturing plant
in Doulevant accounting for 71%
of the French employees. The
production is mostly made up of
fence and access control products.
We see distinct trends in France
for robust and high security
types of products as well as more
esthetically appealing design.
The market is mainly approached
through direct sales (65 %) with
distributors attributing 35% of an-
nual sales. With a stable customer
base, France is predicted to contin-
ue growth. The market in France
is estimated to be €470m in 2015
with an expected growth of 2-5%
pa. This makes the market the sec-
ond largest in Europe. We believe
that growth will be driven prima-
rily by increased security concerns.
FRANCE

M A R K E T
The Nordic countries consist pri-
marily of the Swedish, Danish and
Finnish markets. In total, they ac-
count for 28 % of total sales and
27 % of the group employees. The
market mainly consists of demar-
cation and high security products.
With a stable customer base and
with an expected increased de-
mand in high security products,
the future for the Nordic countries
look very promising. The market
in the Nordic countries is estimat-
ed to amount to €135m. with a
growth of around 5% annually.
Growth is driven by regulations
and growing security concerns
and we see public utilities and
private companies upgrading fa-
cilities to a higher security level.
The Group’s headquarter is sit-
uated in Gothenburg, Sweden.
NORDIC COUNTRIES

M A R K E T
I N T E R N A T I O N A L
N E W M A R K E T S
This market mainly consists of high security
products which represents 13 % of the Group´s
total revenue in 2015. The Group has no emplo-
yees based outside the core markets. The main
sales are going to Middle-East, Asia-Pacific and
Americas.
There is an increased need for fencing across all
markets, however the fencing types are chang-
ing;
• From light to heavy
• From chain-link roll to welded mesh panel
• From short to high fences (up to 2.4 m)
• From cheap to more expensive
A similar trend can be observed for access con-
trol products. In addition, high security products
like Bollards, Road Blockers, Wedges, Truck Stop-
pers and Tyre Killers are added to the Perimeter
Production.

Products & Service
THE TPPG PRODUCT PORTFOLIO IS DIVIDED INTO THREE SEGMENTS: access products, high security and
demarcation. Within each segment there are several categories:
• Access products
• High Security
• Demarcation
• Perimeter Electronics
• Service
Access Products, 30%
Service, 10%
Perimeter Electronics, 5%
Demarcation, 45%
Sales by product segment
High Security, 10%
P R O D U C T S & S E R V I C E

• Bollard—Usually used in cities
to keep traffic out, for example
in pedestrian areas.
• Boom Barrier—Made from a
robust steel construction and
designed for continuous use.
Available as hydraulic, electro-
mechanical and manual boom
barriers.
• Quick Folding Gate—This cate-
gory includes our EntraQuick, a
bi-hinged gate to keep entranc-
es secure. It’s a combination be-
tween a boom barrier and slid-
ing gate.
• Sliding Gate—TPPG offers one
of the most advanced gates in
the market. It’s produced in steel
or aluminum and is delivered ei-
ther cantilevered or as a tracked
gate. In combination with our
telescopic gate the possibilities
are limitless.
• Swing Gates—Designed for oc-
ACCESS PRODUCTS
Access products include gates and barriers made for easy access to demarcated areas. The total market size is estimated
to €320m. Annual growth rate is estimated to be between 2 and 5 percent.
cupying minimum space in the
back-area, these gates can be
delivered with either manual or
electric drive. These gates don’t
need any foundation in the
roadway.
• Turnstiles—When sensitive ar-
eas such as embassies and air-
ports need entrances for per-
sons, turnstiles are the easiest
solution. Our product portfolio
includes several alternatives.

• Barrier Lift System—The barrier
provides a high level of securi-
ty. It provides a reinforced crash
beam which can be lowered into
the road surface enabling pas-
sage.
• Crash Bollard—Used in high se-
curity areas to keep vehicles out.
• Roadblocker—One of few in the
market which is useable after
impact. Also lowers completely
into road surface with it’s fully
closed design. Massive and stur-
dy construction of high tensile
steel.
• Tracked Gate—Sliding gate de-
signed to stop all threats. Unique
design enables bi-directional
impact protection making it ide-
al for all critical infrastructure
applications.
• Tyre Killer—Designed to destroy
a vehicle’s axles and tires if try-
ing to forcibly enter. All vehicles
can drive over the tyre killer
when lowered.
• Wedge Barrier—With a de-
creased installation depth and
foundation footprint reduces in-
stallation costs significantly and
also allows installation in areas
where foundation depths are
limited. Tested to fully stop a 7.5
ton vehicle traveling at 80 km/h
HIGH SECURITY
High security products include both access- and demarcation products made for higher demands. Customers include
prisons, embassies and government property. Our high security products are branded elkosta. The total market is esti-
mated to €80m with an annual growth rate of 5-10 percent. This is the smallest market but also the one with highest
growth rate.
with zero penetration.
• Non-certified products—The
non-crash rated products are
made for vehicle control appli-
cations which doesn’t require a
crash test certified product such
as hotels, bank entrances and
cash handling facilities.
• StrongArm crash—TPPG is an
authorized global distributor of
HySecurity’s cutting edge Stron-
gArm crash barriers. Available in
12 to 24 foot arm lengths and
with an open/close time of 6 to 8
seconds makes them one of the
markets most reliable.

• Palisades—the most elegant
type of fencing, easily adoptable
to architectural design. Also con-
sidered as high security making
it very attractive for embassies
and ministries.
• Posts—Available in square, rect-
angular and triangular shape.
Can also be supplied in long
lengths for i.e. prisons and sta-
diums. Toppings such as barbed
wire holders can also be sup-
plied.
DEMARCATION
Demarcation products include fences and welded mesh. This is the biggest market with an estimated size of €800m. It
is also the one with slowest growth, estimated to be between 1 and 3%.
• Welded Mesh—This is a mod-
ern alternative to the classic
chainlink fence. The lifetime is
much improved with corrosion
protection. The product can also
be coated in all colors making it
easy to blend into surroundings.
PERIMETER ELECTRONICS
Perimeter electronics are included in most perimeter
protection solutions. It includes electronic access con-
trols, detectors, sensors and electrical fences. This is
generally included as a part in TPPG´s system sales.
SERVICES AND AFTER SALES
In addition to the above product segments, Service,
both installation and aftermarket, is becoming increas-
ingly important. The market for services after sales
is estimated to be around 10% of equipment sales,
equaling around €120m. The market for installation is es-
timated to be around 25% of equipment sales, or €300m.
In order to secure that products function correctly
during its lifetime, TPPG offers service comprising of
maintenance, repairs, spare parts and modification.

B R A N D S
Perimeter Protection Group
elkosta Perimeter Protection
Werra Perimeter Protection
Eurozaun
Wego Perimeter Protection
Eurofence Perimeter
Protection
Gunnebostängsel
This is the Group’s name, active in all geographical markets
Brand for demarcation products. Aquired 1997. Mainly active in
the Nordic region and Switzerland
Brand for product sales, mainly perimeter protection and access
control. Active in Germany.
Brand for high protection products. All products are certified and
designed according to certification. elkosta got a long license
agreement with Gunnebo. Aquired 2004. This brand is mainly for
export and system sales in Germany and France
Brand for product sales and service support, mainly in perimeter
protection and access control. Acquired in 2004 and active mainly
in France.
Brand for distribution business and DIY market. Very well rec-
ognised and strong in the Nordic region.
Brand for distribution business and DIY market. Active in the Ger-
man market.
Brands
EUROZAUN

Environmental, social and
governance
THE PERIMETER PROTECTION GROUP offer products to increase the perimeter security of the cus-
tomers. At the same time it is of utmost importance that our operation is safe and sustain-
able from an economic, social and environmental aspect. In order to take this responsibility,
TPPG has an ongoing process to improve products, manufacturing and internal processes.
GOALS
TPPG’s corporate social responsibility is based on UN Declaration of Human Rights, UN’s Global
Compact Initiative, International Labour Organizations Fundamental Principles of Labor Law
and OECD guidelines for multinational companies. The following objectives are established:
• Optimize energy use and minimize the climatic impact of the operation
• Make efficient use of raw materials and natural resources
• Maintain effective sorting-out and recycling of materials in order to minimize the amount
of non-recycled waste
• Further develop the strategy for product development so that environmental aspects
such as energy consumption and the use of natural resources are taken into consideration
throughout the entire lifecycle of a product.
SAFETY
We have a zero tolerance policy regarding workplace accidents and have incorporated safety
as an integrated part of our operations.
ETHICS
We have a zero tolerance policy regarding bribes, corruption, child labor and discrimination.
Our operations are continuously evaluated to ensure that they follow our Code of Conduct.
E N V I R O N M E N T A L , S O C I A L & G O V E R N A N C E
ENVIRONMENT
The Group strives to conduct our operations without harm to the environment. Current regu-
lations are followed in every country the Group is active. None of the operations require com-
pulsory reporting regarding environmental effect.

ORGANISATIONAL
STRUCTURE
Group management - Bengt Pihl, CEO
Sales - Thorsten Grunwald
Service - Bernhard Pawlak
Manufacturing - Michael Busekros
Procurement - Caroline Talsma
Finance - Michael Thurow
O R G A N I S A T I O N A L S T R U C T U R E
TPPG The Perimeter Protection Group AB
(Sweden) 556759-3032
TPPG The Perimeter Protection Group
Verwaltungs-GmbH
(Germany) HRB 117457 (dormant)
Holding GmbH & Co. KG
(Germany) HRA 107917 (dormant)
Perimeter Protection Germany GmbH
(Germany) HRB 4360
(France) 517280160
PPG Perimeter Protection AB
(Sweden) 556854-2723
PPG Perimeter Protection A/S
(Denmark) 33 76 05 07
PPG Perimeter Protection Oy
(Finland) 0124523-7
PPG Perimeter Protection UK Ltd
(Great Britain) 07829239 (dormant)
Perimeter Protection Schweiz AG
CH-020.3.037.136-0
SSI AB
100%100%
Limited
partner 94,9%100%
94,9%100%
100%100%
100%
40%
General Partner 0%
5,1%

13% by Carlquist Holding AB
Owned 100% by Mr. Stephan Carlquist
4,4% by Henry Dunkers Förvaltning AB
Owned 100% by Henry and Gerda Dunkers Stiftelse
15,3% by Per Josefsson Invest AB
Owned 100% by Mr. Per Josefsson
15,3% by East Bay AB
Owned 100% by Mr. Peter Thelin
4,3% by Change Direction 56 AB
Owned 100% by Mr. Bengt Pihl
OWNERS
O W N E R S
47,7% by Autus Invest AB
Owned 95 % by LBO Invest AB
(100% owned by Mr. Mikael Ahlström)
Owned 5% by Mr. Marcus Trummer
The Perimeter Protection Group is fully owned by Strandbaden Svanshall Intressenter (SSI) since December 2015.
SSI is owned by six different legal entities.

CEO & Member of the Board
Mr. Bengt Pihl has a MSc in Economics from Lund University. He has also graduated from
the Advanced Management Program at Harvard Business School. His most recent assign-
ment was at RAK Ceramic Group as Deputy CEO. He also has a history as CEO of Scan-
dlines Group, Sanitec Group and CFO at Bombardier Transportation. He has significant
experience from business reorganisation, turnaround, business development and leadership.
Born: 1956
Nationality: Swedish
Education: AMP Harvard Business School and a B.Sc. in Economics from Lund University
Background: Previously CEO at Scandlines Group, Sanitec Group, ABB AG. Also C-level positions within
RAK Ceramics, Bombardier Transportation and Atlas Copco Group.
MEMBERS
OF THE BOARD
M E M B E R S O F T H E B O A R D
Chairman of the Board
Mr. Mikael Ahlström
Born: 1956
Education: MBA From INSEAD and equivalent of a B.Sc. in Economics from Lund University.
Background: Previous board assignments include Swedish Match, Gunnebo, Bravida and Lekolar. Mr. Ahl-
ström has also been inducted to The Swedish Private Equity Hall of Fame.
Other board assignments: Procuritas Partners, Byggmästare Anders J Ahlström, Gram Equipment, PCTC,
Stiftelsen Millesgården, Chelha foundation, and the non-profit organization Charity Rating.
Member of the Board
Mr. Stephan Carlquist
Born: 1955
Education: Leadership Courses at IMD Duke University and a B.Sc. in economics from Lund
University.
Background: Strategic investor through privately owned holding company, sharing industrial global ex-
periences and supporting CEOs and their top teams. Long experience from president and vice president
functions at ABB and Electrolux.

FORMAL ANNUAL REPORT 2015
TPPG THE PERIMETER PROTECTION GROUP AB
COMP. REG. NO. 556759-3032
THE ANNUAL REPORT COMPRISES

Directors’ report 23
Consolidated statement
of comprehensive income 26
Consolidated balance sheet 27
Consolidated statement of changes in equity 29
Consolidated cash flow statement 30
Parent company income statement 31
Parent company balance sheet 32
Parent company changes in equity 34
Parent company cash flow statement 35
Notes
F O R M A L A N N U A L R E P O R T
Note 1 36
Note 1 36
Note 1 43
Note 4 45
Note 5 46
Note 6 46
Note 7 46
Note 8 47
Note 9 47
Note 10 48
Note 11 48
Note 12 49
Note 13 49
Note 14 50
Note 15 52
Note 16 53
Note 17 53
Note 18 54
Note 19 54
Note 20 54
Note 21 55
Note 22 55
Note 23 56
Note 24 56
Note 25 56
Note 26 57
Note 27 57
Note 28 57
Note 29 58
Note 30 58
Note 31 58

The Board of Directors and CEO of TPPG The Perimeter Protection Group AB (co. reg. no. 556759-3032) hereby
submit the following report of business activity in 2015.
The presentation currency of the parent company and the Group is EUR.The Company’s registered office and
head office is located in Gothenburg. Refer to note 1 for information on the ownership structure.
DIRECTORS’ REPORT
TPPG The Perimeter Protection Group AB is the par-
ent company of the PPG Group and operations con-
sist of owning and managing the Group’s compa-
nies. Operations began on 14 September 2011 when
the former owner, Gunnebo Holding AB, sold the
business to Procuritas Capital Investors IV (PCI IV).
On 22 December 2015, the PPG Group was acquired
in its entirety by Strandbaden Svanshall Intressenter
AB, which has its registered office in Stockholm, Swe-
den. A number of agreements were reached in con-
nection with the acquisition, including the waiver of
shareholder loans.
The Group’s business operations consist of the
production, sale, installation and service of outdoor
perimeter protection. PPG’s customers are found in
various sectors, such as industrial businesses, office
complexes, logistics centres, airports, harbours, nu-
clear power plants, prisons and embassies. All with
different needs for security solutions, from basic se-
curity needs consisting of fencing systems; gate and
barrier systems for high security; surveillance, alarm
and control systems; as well as service and customer
support. PPG has about 350 employees in five Euro-
pean countries, and distributors and agents in ap-
proximately 50 countries throughout the world.
Significant events during the fiscal period
Operations
The PPG Group has continued to adapt its organisa-
tion and operations to meet market needs, the com-
panies’ earnings development, and the strategic di-
rection defined by the Board and the owners. As part
of this, extensive restructuring has been carried out
in the operations in Sweden, Norway, Finland, Ger-
Significant events during the fis-
cal period
many, and France. The restructuring included chang-
es in production processes, structural changes in
sales and administration, and a reduction of person-
nel.
Changes were made to the product mix offered
to the market based on increased focus on specific
product groups.
In connection with preparations for the change
of ownership, a number of senior executives left the
Company. The new owners have initiated processes
of change in order to significantly improve perfor-
mance.
Upon change of ownership on 22 December
2015, the new owners injected capital into the Com-
pany. In connection with the change of ownership, a
new Board was appointed, with Mikael Ahlström
elected Chairman, and Stephan Carlquist and Bengt
Pihl elected as members.
During the year, working capital financing was
raised in Denmark with a Danish bank. The subsid-
iaries in Sweden and Finland have entered into
agreements for factoring services.
During the year, operating profit/loss was en-
cumbered by impairment of goodwill related to the
Nordic operations in the amount of EUR 73 thou-
sand.
During the year, liquidation of the subsidiaries in
Estonia and Russia was initiated.
The Company has changes the method of valua-
tion in the context of what is permitted in the ac-
counting standard IAS16. In December, the real es-
tate assets in Denmark, Germany and France were
revalued to the new market values. These values and
the expected deferred taxes are included in this
year’s report. Depreciation of the new, higher asset
values takes place beginning January 2016.
F O R M A L A N N U A L R E P O R T | D i r e c t o r s ’ r e p o r t

2015 2014 2013 2012
Amounts in tEUR Jan–Dec Jan–Dec Jan–Dec Jan–Dec
Net turnover 58 121 71 631 71 758 80 146
Operating profit/loss -6 893 -4 254 -5 427 -4 965
Net financial income -742 -1 121 -1 424 -1 935
Profit/loss after net financial income -7 635 -5 375 -6 851 -6 900
Profit/loss for the year -7 693 -6 089 -6 132 -6 438
Consolidated shareholders’equity 14 155 403 5 463 7 336
Balance sheet total 36 993 34 463 37 704 40 492
Debt/equity ratio 38.3% 1.2% 14.5% 18.1%
Significant events after the fiscal
period
The PPG Group’s Swedish subsidiary has undergone
further restructuring, which has led to the continued
reduction of personnel as well as the recruitment of
new personnel, primarily focused on sales. A large
proportion of the administration in Sweden has
been outsourced to an external supplier.
The French subsidiary has reduced its workforce
by about 15% as part of efforts to improve profitabil-
ity and change the production process.
The subsidiary in Norway declared bankruptcy in
March 2016, and a bankruptcy trustee has been ap-
pointed by the Norwegian District Court. A liquida-
tion process for the subsidiary in England com-
menced in the spring.
In 2016, the parent company received a long-
term loan from the owners of more than EUR 2 mil-
lion.
In the spring of 2016, profitability improved, spe-
cifically in the subsidiaries in Denmark, Finland and
France. The subsidiaries in Germany and Sweden
show good improvement as a result of the imple-
mented measures.
In connection with the change of ownership in
December 2015, the Board approved a new plan re-
lated to sales and profitability development through
2020. The market for the product mix on which the
Company focuses is expected to increase by at least
5-8% per annum. Through its market-leading posi-
tion, the Company is increase beyond regular market
development.
Beyond this, no significant events occurred up to
the submission of this annual report.
With the change in ownership and the extensive re-
structuring process, the PPG Group is cautiously op-
timistic about the future, with even sharper focus on
system deliveries, cross-border sales and the busi-
ness area Service. The change in the offered product
mix has change the customer structure, and sales to
government authorities and agencies have increased
in all of the subsidiaries. Focus on specific business
areas has also significantly improved the sales mar-
gin.
Through the change in ownership and the ongo-
ing change efforts, PPG will be well positioned for
Revenue, earnings and financial position of the Group
Future development expansion and a significant improvement in profit-
ability.
PPG is not providing a forecast for the year as a
whole, but expects 2016 to surpass 2015 in profit-
ability.
PPG strives to run its operations in a way that does
not harm the environment.The Group complies with
all applicable environmental legislation in its opera-
tions and processes. The Group has no operations for
which there is a duty to report or which require li-
censing under the Swedish Environmental Code.
Environmental impact

The following profit in the parent company is at the
disposal of the Annual General Meeting:
The parent company received a shareholder contri-
bution of EUR 14 851 676.97.
The board proposes that the profits be distributed as
follows:
Carried forward EUR 11 266 164.00
Total EUR 11 266 164.00
The Group’s operations and earning are affected by a
number of external and internal factors. There is a
continuous process to identify all existing risks and
assess how each risk should be managed. The Com-
pany is primarily exposed to market risks, credit risk
and liquidity risk. Financial risks are described in note
3.
The parent company’s operations primarily comprise
functions for Group management, accounting/fi-
nance and IT. Earnings amounted to EUR 1 435 thou-
sand (1 366) and loss after financial items amounted
to EUR -5 222 thousand (-7 445).
For further information about the Group’s and
parent company’s earnings and financial position,
please refer to the following income statements, bal-
ance sheets, statement of comprehensive income,
statement of changes in equity and cash flow state-
ments as well as the associated accounting policies
and notes.
Business risks
Parent company
Share premium reserve EUR 1 194 644.60
Retained earnings EUR 15 293 651.76
Profit/loss for the year EUR -5 222 131.36
Total E6 EUR 11 266 164.00
Proposal for distribution of profit

Amounts in tEUR Note 2015 2014
Net turnover 5 58 121 71 631
Cost of goods sold -51 192 -61 225
Gross profit 6 929 10 406
Selling expenses -8 829 -10 539
Administrative expenses -5 392 -4 836
Results from participation in associated companies 18 27 16
Other operating income 11.18 588 872
Other operating expenses 11 -216 -173
Operating profit/loss 7,8,9,10,29,31 -6 893 -4 254
Financial income 12 2 7
Result from participations in group companies 12 105 -
Financial expenses 12 -849 -1 128
Net financial items -742 -1 121
Profit/loss before tax -7 635 -5 375
Tax on profit/loss for the year 13 -58 -714
Profit/loss for the year -7 693 -6 089
Other comprehensive income
Items that cannot be reclassified for the results:
Actuarial profit and loss - -15
Total items that cannot be reclassified for the results: 0 0 -15
Revaluation of property 6 847 -
Deferred tax, revaluation of property -1 976 -
Translation differences 86 44
Total items that can be reclassified for the results 4 957 4 957 44
Other comprehensive income for the year, net of tax 4 957 29
Total comprehensive income for the year -2 736 -6 060
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
Total comprehensive income is attributable to parent company shareholders.
F O R M A L A N N U A L R E P O R T | Consolidated statement of comprehensive income

Amounts in tEUR Note 2015-12-31 2014-12-31
ASSETS
Fixed assets
Intangible assets 14
Goodwill 2 189 2 267
Other intangible assets 1 070 1 190
Total intangible assets 3 259 3 457
Tangible assets 15
Buildings and land 10 272 3 700
Machinery 12 1 502 1 792
Equipment, tools and installations 12 520 519
Construction in progress 12 85 63
Total tangible assets 12 379 6 074
Financial assets
Shares in associated companies 18 101 74
Deferred tax assets 16 717 763
Other long-term receivables 144 70
Total financial assets 962 907
Total fixed assets 16 600 10 438
Current assets
Inventories 20 9 389 9 983
Accounts receivable 21 8 073 11 153
Receivables from associated companies - 125
Other receivables 900 786
Prepaid expenses and accrued income 22 1 387 1 517
Liquid funds 644 461
Total current assets 4 957 20 393 24 025
TOTAL ASSETS 36 933 34 463
CONSOLIDATED BALANCE SHEET
F O R M A L A N N U A L R E P O R T | C o n s o l i d a t e d b a l a n c e s h e e t

EQUITY AND LIABILITIES
Equity attributable to parent company shareholders
Share capital 23 14 14
Other contributed capital 23 37 653 21 165
Revaluation reserve 4 871 -
Reserves 189 103
Retained earnings including profit/loss for the year -28 572 -20 879
Total equity 14 155 403
Provisions
Pension obligations 189 180
Deferred tax liabilities 16 2 010 32
Other provisions 26 713 773
Total provisions 2 912 985
Long-term liabilities
Borrowings from shareholders 24 1 902 2 425
Borrowings 24 - 3 420
Total long-term liabilities 1 902 5 845
Current liabilities
Borrowings from shareholders 24 - 7 151
Liabilities to credit institutions 25 7 668 8 313
Accounts payable 19 6 140 6 757
Liabilities to associated companies 2 8
Current tax liabilities 29 85
Other liabilities 1 062 1 777
Accrued expenses and deferred income 27 3 123 3 139
Total current liabilities 18 024 27 230
4 957
TOTAL EQUITY AND LIABILITIES 36 993 34 463
CONSOLIDATED BALANCE SHEET, cont.
F O R M A L A N N U A L R E P O R T | C o n s o l i d a t e d b a l a n c e s h e e t

Amounts in tEUR Note
Share
capital
Other
contributed
capital
Revaluation
reserve Reserves
Retained
earnings
Total
equity
Opening balance as per
1 January 2014 14 20 165 - 59 -14 775 5 463
Comprehensive income
Other comprehensive income for the year
- 44 -15 29
Total comprehensive income - 44 -6 104 -6 060
Transactions with shareholders
Shareholder contribution 1 000 1 000
1 January 2015 23 14 21 165 - 103 -20 879 403
Revaluation of property 6 847 6 847
Deferred tax, revaluation of
property -1 976 -1 976
Other comprehensive income for the year
- 86 86
Total comprehensive income 4 871 86 -7 693 -2 736
Closing balance as per
31 December 2015 23 14 37 653 4 871 189 -28 572 14 155
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
F O R M A L A N N U A L R E P O R T | C o n s o l i d a t e d s t a t e m e n t o f c h a n g e s i n e q u i t y

CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operating activities
Operating profit/loss before financial items -6 893 -4 254
Depreciation/impairment 1 322 2 389
Other non-cash items 30 -95 272
Interest received 2 7
Interest paid -524 -488
Income tax paid -71 -84
Cash flow from operating activities before change in working capital
-6 259 -2 158
Cash flow from change in working capital
Increase/decrease in inventories 594 931
Increase/decrease in operating assets 3 147 -23
Increase/decrease in operating liabilities -1 410 -44
Total change in working capital 2 331 864
Cash flow from operating activities -3 928 -1 294
Cash flow from investment activities
Proceeds from sales of fixed assets 17 13
Investments in intangible and tangible assets 14,15 -660 -1 288
Cash flow from investment activities -643 -1 275
Cash flow from financing activities
Shareholder contribution received 23 1 596 -
Raising of loans 3 798 2 481
Repayment of debt 23 -645 -136
Cash flow from financing activities 4 749 2 345
Cash flow for the year 178 -224
Liquid funds at beginning of year 461 697
Exchange rate difference in liquid funds 5 -12
Liquid funds at end of year 4 957 644 461
F O R M A L A N N U A L R E P O R T | C o n s o l i d a t e d c a s h f l o w s t a t e m e n t

PARENT COMPANY INCOME STATEMENT
Net turnover 6 1 435 1 366
Gross profit 1 435 1 366
Administrative expenses 6 -2 489 -1 989
Other operating income 11 36 10
Other operating expenses 11 -55 -
Operating profit/loss 7,8,9,10,29,31 -1 073 -613
Result from participations in group companies 12 -4 056 -6 480
Other interest income and similar items 12 206 229
Interest expenses and similar items 12 -299 -581
Net financial items -4 149 -6 832
Profit/loss before tax -5 222 -7 445
Tax on profit/loss for the year 13 - -
F O R M A L A N N U A L R E P O R T | P a r e n t c o m p a n y i n c o m e s t a t e m e n t
There is no other comprehensive income for the parent company, hence the total comprehensive income for the
parent company is the same as the profit/loss for the year.

PARENT COMPANY BALANCE SHEET
ASSETS
Fixed assets
Intangible assets
Capitalised development expenditure - 23
Software 487 624
Total intangible assets 14 487 647
Financial assets
Participations in group companies 17 8 886 9 440
Participations in associated companies 18 33 33
Receivables from group companies 12 2 143 2 661
Total financial assets 11 062 12 134
Total fixed assets 11 549 12 781
Current assets
Current receivables
Accounts receivable 2 -
Receivables from group companies 1 907 902
Other receivables 89 160
Prepaid expenses and accrued income 22 717 762
Total current receivables 2 715 1 824
Cash and bank 5 10
Total current assets 2 720 1 834
TOTAL ASSETS 14 269 14 615
F O R M A L A N N U A L R E P O R T | P a r e n t c o m p a n y b a l a n c e s h e e t

PARENT COMPANY BALANCE SHEET, CONT.
EQUITY AND LIABILITIES
Equity 23
Restricted equity
Share capital 14 14
Total restricted equity 14 14
Unrestricted equity
Share premium reserve 1 195 1 195
Retained earnings 15 294 7 887
Total unrestricted equity 11 267 1 637
Total equity 11 281 1 651
Long-term liabilities
Borrowings from shareholders 24 1 902 2 425
Borrowings 24 - 3 420
Total long-term liabilities 1 902 5 845
Current liabilities
Borrowings from shareholders 24 - 5 730
Liabilities to group companies 243 704
Accounts payable 377 429
Other liabilities 6 13
Accrued expenses and deferred income 27 460 243
Total current liabilities 1 086 7 119
TOTAL EQUITY AND LIABILITIES 14 269 14 615
Pledged assets 28 - -
Contingent liabilities 28 - -
F O R M A L A N N U A L R E P O R T | P a r e n t c o m p a n y b a l a n c e s h e e t

PARENT COMPANY CHANGES IN EQUITY
Amounts in tEUR Note
Share
capital
Share premium
reserve Retained
earnings
Total equity
1 January 2014 14 1 195 6 887 8 096
Comprehensive income for the year -7 445 -7 445
Total comprehensive income -7 445 -7 445
1 January 2015 23 14 1 195 442 1 651
Comprehensive income for the year -5 222 -5 222
Total comprehensive income -5 222 -5 222
Closing balance as per
31 December 2015 23 14 1 195 10 072 11 281
Restricted
equity Unrestricted equity
F O R M A L A N N U A L R E P O R T | P a r e n t c o m p a n y c h a n g e s i n e q u i t y

PARENT COMPANY CASH FLOW STATEMENT
Cash flow from operating activities
Operating profit/loss before financial items -1 073 -613
Depreciation 160 176
Other non-cash items 30 - -
Interest received 205 95
Interest paid -199 -76
Income tax paid - -
Cash flow from operating activities before change in working capital
-907 -418
Cash flow from change in working capital
Increase/decrease in operating assets -454 -642
Increase/decrease in operating liabilities -303 -414
Total change in working capital -757 -1 056
Cash flow from operating activities -1 664 -1 474
Investment activities
Investments in subsidiaries -3 420 -
Investments in intangible assets 14 - -49
Cash flow from investment activities -3 420 -49
Financing activities
Shareholder contribution received 23 1 596 -
Loans received/repaid loans 3 483 2 404
Amortisation/loans granted 23 -0 -1 018
Cash flow from financing activities 5 079 1 386
Cash flow for the year -5 -137
Liquid funds at beginning of year 10 147
Exchange rate difference in liquid funds - -
Liquid funds at end of year 5 10
F O R M A L A N N U A L R E P O R T | P a r e n t c o m p a n y c a s h f l o w s t a t e m e n t

TPPG The Perimeter Protection Group AB is a Swed-
ish company based in Gothenburg.
Strandbaden Svanshall Intressenter AB, co. reg.
no. 559020-3419, acquired all shares on 22 Decem-
ber 2015.
The Group’s main business operations consist of
the production, sales, installation and service of se-
curity products for outdoor perimeter protection.
The consolidated accounts and annual report
were approved by the board for publication on 30
June 2016.
All amounts are reported in EUR thousands
(tEUR) unless otherwise indicated. Figures in paren-
theses refer to the preceding year.
The key accounting policies applied when these con-
solidated accounts were drawn up are indicated be-
low. These policies have been consistently applied to
all years presented, unless otherwise indicated.
In 2015, the Company changed its accounting
policy regarding valuation of tangible assets. The re-
valuation method is not used for the Group’s proper-
ties instead of the historical cost method in IAS 16.
This is described in more detail in point 2.6 below.
2.1 BASIS OF PREPARATION
This report contains Perimeter Protection Group’s
consolidated accounts, and the IFRS (International
Financial Reporting Standards) were the accounting
policies applied. The consolidated accounts were
prepared in accordance with IFRS as adopted by the
EU, RFR 1 Supplementary Accounting Rules for
Groups as well as the Annual Accounts Act.
The consolidated accounts were prepared using
the historical cost method. The key accounting poli-
cies applied when these consolidated accounts were
drawn up are indicated below. These policies have
been consistently applied to all years presented, un-
less otherwise indicated.
Preparing statement in accordance with IFRS re-
quires the use of a number of important accounting
estimates. Furthermore, management must make
certain judgements when applying the Group’s ac-
counting policies (see note 4 for the areas that in-
clude estimations and assessments of significance
to the consolidated accounts).
New and amended standards applied by the Group
New and amended standards has not had any effect
on the consolidated financial statements 2015.
Standards, amendments and interpretation of exist-
ing standards that have not yet come into force and
that are not applied prospectively by PPG
During preparation of the consolidated accounts as
per 31 December 2015, several standards and inter-
pretations applicable to PPG were published, but
had not yet entered into force. A preliminary assess-
ment of the effects from the standards deemed rele-
vant to PPG is found below:
- IFRS 15 “Revenue from contracts with cus-
tomers”was issued on 28 May 2014 and will replace
IAS 18 Revenue and IAS 11 Construction contracts.
Application of IFRS 15 is mandatory for all IFRS-re-
porting companies beginning with the fiscal year
starting 1 January 2017 or later. IFRS 15 represents a
model for revenue recognition for almost any reve-
nue arising from contracts with customers, except
leases, financial instruments and insurance con-
tracts. The basic principle for revenue recognition is
that a company should recognize revenues when all
risks and rewards associated with the goods and/or
services are transferred to the customers in ex-
change for payment for these goods and/or services.
The new standard may have an impact on service
agreements, sales of various types of goods/services,
long term contracts and possibly the underlying
warranty. A detailed analysis of the impact applica-
tion of IFRS 15 will have has not yet been conducted.
Thus, the effects cannot be quantified at this stage.
- IFRS 9 Financial Instruments will replace IAS
39 Financial Instruments: Recognition and Measure-
ment. The latest version of the standard was issued
on 24 July 2014 and replaces the previous versions.
IFRS 9 contains new requirements for financial in-
struments relating to their classification and mea-
NOTES
NOTE 1 GENERAL INFORMATION
NOTE 2 SUMMARY OF KEY ACCOUNTING POLICIES
F O R M A L A N N U A L R E P O R T | N o t e s

Goodwill is initially measured as the excess with
which the total purchase price exceeds the fair value
of identifiable assets acquired and liabilities as-
sumed.
Intercompany transactions, balance sheet items,
income and expenses on transactions between
Group companies are eliminated. Profits and losses
that result from intercompany transactions and are
recognised in assets are also eliminated. The ac-
counting policies of subsidiaries have been changed
where necessary to ensure a consistent application
of the Group’s policies.
The term associated company applies to all com-
panies over which the Group has significant influ-
ence, but not control. This generally applies for a
shareholding of between 20% and 50% of the votes.
Shares in associated companies are recognised using
the equity method. When applying the equity meth-
od, the investment is initially valued at cost and the
carrying amount is increased or decreased to recog-
nise the Group’s share of the associated company’s
profit or loss since the acquisition date. The Group’s
share of the associated company’s profit or loss after
tax is reported in the consolidated income state-
ment. The Group’s reported value of shares in associ-
ated companies includes goodwill identified on ac-
quisition.
2.3 FOREIGN CURRENCY TRANSLATION
Functional currency and presentation currency
The various units of the Group have their local cur-
rency as the functional currency as the local currency
has been defined as the currency of the primary eco-
nomic environment in which the unit operates. The
consolidated accounts use EURO (EUR), which is the
functional currency of the parent company and the
presentation currency of the Group.
Transactions and balance sheet items
Foreign currency transactions are translated into the
functional currency using the exchange rates pre-
vailing at the transaction date. Exchange gains and
losses resulting from the settlement of such transac-
tions and from the translation of monetary assets
and liabilities denominated in foreign currencies at
the balance sheet date are recognised in operat-
ing-profit/loss in the income statement.
surement, derecognition, write-down and hedge ac-
counting. The standard, which has not yet been
adopted by the EU, will apply from 1 January 2018.
IFRS 9 requires that all recognised financial assets
covered by IAS 39 to continue to be measured at ei-
ther amortised cost, fair value through profit or loss
or fair value through other consolidated income. Re-
garding the classification and measurement of fi-
nancial liabilities (designated at fair value through
profit or loss) attributable to changes in fair value
due to changes in credit risk, the real change in value
of such financial liabilities are recognised in other
comprehensive income to the extent the change re-
lates to changes in credit risk. This applies provided
that the account of the impact of the change in the
liability’s credit risk in other comprehensive income
will not result in misleading matching of the profit
and loss statement. Furthermore, changes in fair val-
ue attributable to credit risk shall not be reclassified
to profit or loss in a subsequent period. A detailed
analysis of the impact application of IFRS 9 will have
has not yet been conducted. Thus, the effects cannot
be quantified at this stage.
None of the other IFRS or IFRIC interpretations
that have not yet entered into force are expected to
have a material impact on the Group.
2.2 CONSOLIDATED ACCOUNTS
The term subsidiary applies to all companies (includ-
ing special-purpose companies) over which the
Group has the power to govern financial and operat-
ing policies (controlling interest) in a way that usual-
ly accompanies a shareholding amounting to more
than half of the voting rights. Subsidiaries are includ-
ed in the consolidated accounts from the date on
which controlling interest is transferred to the Group.
They are excluded from the consolidate account
from the date when controlling interest ceases.
The acquisition method is used to report the
Group’s acquisitions. The purchase price for the ac-
quisition of a subsidiary is the fair value of trans-
ferred assets and liabilities that the Group incurs to
former owners of the acquired company. Identified
assets acquired and liabilities assumed in a business
acquisition are measured initially at their fair values
at the acquisition date. Acquisition-related costs are
expensed as incurred.
NOTE 2 CONT.

Other intangible assets
Other intangible assets consist primarily of product
development costs and the cost of purchasing and
developing software. Internally-generated intangi-
ble assets are only recognised as an asset if an iden-
tifiable asset has been created, it is probable that the
asset will generate future economic benefits, and
the costs of developing the asset can be calculated in
a reliable manner.
Intangible assets are recognised at cost less accu-
mulated depreciation and any impairment. The cost
of an internally-generated intangible asset is the
sum of expenditure incurred from the date when the
intangible asset first met the capitalisation criteria
stated above.
Depreciation commences when the asset is ready
for use. The useful life is assessed based on the peri-
od that the expected benefits are expected to accrue
to the Company. The useful life is estimated at 3-5
years and depreciation is linear over this period. De-
preciation is recognised as a part of the cost of goods
sold and administrative expenses.
Expenses for development which does not beet
the above criteria are expensed as they are incurred.
Expenses for development that were not previously
expensed are not recognised as an asset in subse-
quent periods.
2.5 IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets that have an indefinite useful life, such as
goodwill, or assets that are not yet ready for use are
not amortised but are instead tested annually for
impairment. Assets that are depreciated are re-
viewed for impairment whenever events or changes
in circumstances indicate that the carrying amount
may not be recoverable. An impairment is the
amount by which the asset’s carrying amount ex-
ceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less sell-
ing expenses and value in use. When assessing im-
pairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows
(cash-generating units). For assets other than good-
will that were previously impaired, an assessment is
made per each balance sheet date as to whether re-
versal should be carried out.
Exchange gains and losses that relate to borrow-
ings and liquid funds are recognised in the income
statement as financial income or expenses. All other
exchange gains and losses are recognised as other
operating income or other operating expenses in the
income statement.
Translation of foreign group companies
The results and financial position of the units that
have a functional currency different from the pre-
sentation currency are translated into the presenta-
tion currency. The assets and liabilities for each bal-
ance sheet are translated from their functional
currency to the Group’s presentation currency
(EURO) at the exchange rate prevailing at the bal-
ance sheet date. Income and expenses for each in-
come statement are translated into EURO at the av-
erage exchange rate. Translation differences arising
on translation of foreign operations are recognised
in other comprehensive income.
Goodwill and fair value adjustments arising on
the acquisition of a foreign entity are treated as as-
sets and liabilities of the foreign entity and translat-
ed at the closing day rate.
2.4 INTANGIBLE ASSETS
Goodwill
Goodwill arises on acquisition of subsidiaries and re-
lates to the amount by which the purchase price ex-
ceeds the parent company’s share in the fair value of
identifiable assets, liabilities and contingent liabili-
ties in the acquired company.
Goodwill is always considered to have an indefi-
nite useful life and is tested annually for impairment
instead of being amortised on a running basis. Good-
will is stated at cost less any accumulated impair-
ment. For the purpose of testing impairment need,
goodwill acquired in a business acquisition is allo-
cated to cash-generating units or groups of units ex-
pected to benefit from synergies from the acquisi-
tion. Each unit or group of units to which goodwill
has been allocated correspond to the lowest level in
the Group at which the goodwill is monitored for in-
ternal management. Goodwill is monitored at the
operating segment level, which means a monitoring
of each subsidiary.
NOTE 2 CONT.

2.7 FINANCIAL INSTRUMENTS
2.7.1 CLASSIFICATION
The Group classifies its financial assets and liabilities
in the following categories: loans and receivables
and other financial liabilities. The classification de-
pends on the purpose for which the financial asset
or liability was acquired. The classification in the dif-
ferent categories in turn determines the valuation
and accounting of the financial instruments of the
Group.
Loans and receivables
Loans and receivables are financial assets with fixed
or determinable payments that are not quoted in an
active market. They are included in current assets,
except for items with a maturity greater than 12
months after the balance sheet date which are clas-
sified as fixed assets. The Group’s “loans and receiv-
ables”consist of accounts receivable, the part of oth-
er receivables which are financial instruments, and
liquid funds (see note 19).
Other financial liabilities
The Group’s borrowings from the owners, former
owners, accounts payable, bank overdraft and factor-
ing facility debt are classified as other financial liabil-
ities. Other financial liabilities are classified as cur-
rent liabilities if they fall due within one year or
earlier. If not, they are reported as long-term liabili-
ties.
2.7.2 RECOGNITION AND MEASUREMENT
Purchasesandsalesoffinancialassetsarerecognised
on the trade date, i.e. the date that the Group com-
mits to purchase or sell the asset. Financial instru-
ments are initially recognised at fair value plus trans-
action¬costs. Financial assets are derecognised from
the balance sheet when the right to receive cash
flows from the instrument has expired or been trans-
ferred, and the Group has transferred substantially
all risks and rewards associated with ownership. Fi-
nancial liabilities are derecognised from the balance
sheet when the contractual obligation has been ful-
filled or otherwise extinguished.
2.6 TANGIBLE ASSETS
Tangible assets are recognised at cost, with the ex-
ception of the Group’s properties, which are rec-
ognised in accordance with the revaluation method.
Tangible assets that are recognised at cost are rec-
ognised less depreciation and any impairment. Cost
includes expenses that are directly attributable to
the acquisition of the asset and to bring it into place
and condition to be utilised in accordance with the
intended purpose. Revaluation of the Group’s prop-
erties increased the book value of the assets in accor-
dance with the received external valuation report on
the market value of the properties; see note 15. Ex-
penses for improving the performance of the asset
increases its carrying value if the investment is ex-
pected to generate future economic benefits. All oth-
er forms of repairs and maintenance are recognised
as expenses in the income statement in the period
during which they arise.
Each part of a tangible asset with a cost that is
significant in relation to the total cost of the asset is
depreciated separately. Land is not subject to depre-
ciation. Depreciation of the revalued carrying
amount for the Group’s properties is done in relation
to the depreciation rate of the underlying property.
Depreciation is performed linearly as follows:
Vehicles 5 years
Computers 3-5 years
Machinery and other equipment 5-15 years
Buildings 20-50 years
The residual value and useful life of the assets are
reviewed at the end of each reporting period and ad-
justed if necessary. Revaluation of the Group’s prop-
erty values is reviewed during the report period by
obtaining external valuation reports. An asset’s car-
rying amount is written down immediately to its re-
coverable amount if the asset’s carrying amount ex-
ceeds its estimated recoverable amount.
Gains and losses on disposal of tangible assets
are determined by comparing proceeds with the car-
rying amount and are recognised in other operating
income and other operating expenses.
NOTE 2 CONT.

dinary course of business less applicable selling ex-
penses.
2.9 ACCOUNTS RECEIVABLE
Accounts receivable are amounts due from custom-
ers for products sold or services performed in the or-
dinary course of business. If payment is expected
within one year or less, they are classified as current
assets. If not, they are reported as fixed assets.
Accounts receivable are initially recognised at fair
value and subsequently at amortised cost using the
effective interest method, less a provision for impair-
ment. The fair value and the amortised cost in subse-
quent periods is equal to the nominal amount of the
receivables since this item is short-term in nature.
2.10 LIQUID FUNDS
In both the balance sheet and the cash flow state-
ment, liquid funds include cash and bank balances.
2.11 ACCOUNTS PAYABLE
Accounts payable are obligations to pay for goods
and services acquired from suppliers in the ordinary
course of business. Accounts payable are classified
as current liabilities if they fall due within one year or
earlier. If not, they are reported as long-term liabili-
ties.
Accounts payable are initially recognised at fair
value and subsequently at amortised cost using the
effective interest method, less a provision for impair-
ment. The fair value and the amortised cost in subse-
quent periods is equal to the nominal amount of the
accounts payable since this item is short-term in na-
ture.
2.12 CURRENT AND DEFERRED TAX
The tax expense for the period comprises current
and deferred tax. The current tax expense is calculat-
ed using tax rates which at balance sheet date are
enacted or substantively enacted in the countries
where the parent company and its subsidiaries oper-
ate and generate taxable income.
Deferred tax is calculated according to the bal-
ance sheet method for all temporary differences that
arise between the tax bases of assets and liabilities
and their carrying amounts in the consolidated ac-
counts. Deferred tax is not recognized if it arises as a
Loans and receivables and other financial liabili-
ties are recognised after the time of acquisition at
amortised cost using the effective interest method.
2.7.3 OFFSETTING OF FINANCIAL INSTRUMENTS
Financial assets and liabilities are offset and the net
amount presented in the balance sheet only when
there is a legally enforceable right to offset the rec-
ognised amounts and an intention to settle on a net
basis, or to simultaneously realise the asset and set-
tle the liability.
2.7.4 IMPAIRMENT OF FINANCIAL INSTRUMENTS
Assets carried at amortised cost (loans and receiv-
ables)
At the end of each reporting period, the Group as-
sesses whether there is objective evidence of impair-
ment for a financial asset or a group of financial as-
sets. A financial asset or group of financial assets is
impaired and written down only if there is objective
evidence of impairment as a result of one or more
events that occurred after the initial recognition of
the asset and that event has an impact on the esti-
mated future cash flows of the financial asset or
group of financial assets that can be estimated reli-
ably.
The impairment is calculated as the difference
between the asset’s carrying amount and the pres-
ent value of estimated future cash flows discounted
at the financial asset’s original effective interest rate.
The asset’s carrying amount is written down and the
impairment amount is recognised in the consolidat-
ed income statement. If the impairment need de-
creases in a subsequent period and the decrease can
be related objectively to an event occurring after the
impairment was recognised, the reversal of the pre-
viously recognised impairment loss is reported in the
consolidated income statement.
2.8 INVENTORIES
Inventories are stated at the lower of cost and net
realisable value. Cost is determined using the first in,
first out (FIFO) method. The value of inventories in-
cludes an attributable share of indirect costs.
Cost consists of the purchase price from suppliers
and expenses for customs and shipping. The net re-
alisable value is the estimated selling price in the or-
NOTE 2 CONT.

result of a transaction that constitutes the first re-
porting of an asset or liability that is not a business
acquisition and that at the time of the transaction
affects neither accounting nor taxable-profit. De-
ferred income tax is determined using tax rates that
have been enacted or substantially enacted by the
balance sheet date and are expected to apply when
the related deferred tax asset is realised or the de-
ferred tax liability is settled.
Deferred tax assets on loss carryforwards are rec-
ognised to the extent that it is probable that future
taxable profit will be available against which the loss
can be utilised.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and tax liabilities and when the deferred
tax assets and liabilities relate to taxes charged by
the same tax authority and relate to either the same
taxable entity or different taxable entities, where
there is an intention to settle the balance through
net payment.
2.13 BORROWINGS
Borrowings are recognized initially at fair value. Bor-
rowings are subsequently stated at amortised cost
and any difference between the amount received
and the amount to be repaid is recognised in the in-
come statement over the period of the borrowings
using the effective interest method. No transaction
costs occurred in connection with the raising of
loans.
Bank overdraft facilities are shown within bor-
rowings in liabilities to credit institutions in the bal-
ance sheet.
2.14 EMPLOYEE BENEFITS
Pension obligations
The Group has both defined benefit and defined con-
tribution pension plans and the accounting is done
according to IAS 19.
A defined contribution plan is a pension plan un-
der which the Group pays fixed contributions into a
separate legal entity. The Group has no legal or con-
structive obligations to pay further¬contributions if
this legal entity has insufficient assets to pay all em-
ployee benefits relating to employee service in the
current and prior periods. For defined contribution
plans, the Group pays contributions to publicly or
privately administered pension plans on a mandato-
ry, contractual or voluntary basis. The Group has no
further payment obligations once the contributions
are paid. The contributions are recognised as person-
nel costs when they fall due. Prepaid contributions
are recognised as an asset to the extent that cash
repayment or reduction of future payments can ben-
efit the Group.
Other plans are defined benefit plans, where the
obligations remain within the Group. The liability
recognised in the balance sheet for defined benefit
pension plans is the present value of the defined
benefit obligation at the end of the reporting period
less the fair value of plan assets. The defined benefit
pension obligation is calculated annually by inde-
pendent actuaries using the projected unit credit
method. The present value of the defined benefit ob-
ligation is determined by discounting the estimated
future cash flows using interest rates of high-quality
corporate bonds that are denominated in the same
currency in which the benefits will be paid with du-
rations comparable to the pension obligation. Actu-
arial gains and losses arising from experience-based
adjustments and changes in actuarial assumptions
are recognised in other comprehensive income
during the period in which they arise. Costs relating
to past service is recognised directly in the income
statement.
The Group’s significant defined benefit plan is
the ITP plan secured through contributions to Alecta.
The Group has not had access to information that
makes it possible to report this plan as a defined
benefit plan in 2015 or in 2014. For this reason, the
plan is reported as a defined contribution plan.
There is an additional defined benefit plan in the
Group that does not represent a significant amount.
For this reason, there is no note disclosures for de-
fined benefit plans.
Bonus plans
The Group recognises a liability and an expense for
bonuses. The Group recognises a provision when
there is a legal obligation or an informal obligation
due to prior practice.
NOTE 2 CONT.

Termination benefits
Termination benefits are payable when employment
is terminated prior to the normal pension date or
when an employee accepts voluntary redundancy in
exchange for these benefits. The Group recognises
severance pay when it is demonstrably obligated to
terminate employees according to a detailed formal
plan without possibility of withdrawal. In the event
the company has made an offer to encourage volun-
tary redundancy, the severance pay is calculated
based on the number of employees expected to ac-
cept the offer. Benefits due more than 12 months
after the end of the reporting period are discounted
to present value.
2.15 REVENUE RECOGNITION
Revenue comprises the fair value of the payment re-
ceived or receivable for goods and services sold in the
Group’s ordinary course of business. PPG’s revenue
consists primarily of sales of goods and revenue is
recognized upon delivery of the product to the cus-
tomer in accordance with the terms of sale. Revenue
is reported net of returns, VAT and discounts and af-
ter elimination of intercompany sales.
PPG also enters into agreements regarding secu-
rity solutions, which means that the Group commits
to deliver and install a turnkey solution for outdoor
perimeter protection. Revenue from agreements for
security solutions are recognised in line with the de-
gree of completion according to the percentage of
completion method. With this method, revenue, ex-
penses and thereby results are reported in the ac-
counting period during which the work is performed.
The calculation of the proportion that can be rec-
ognised in earnings for agreements for security solu-
tions is based on the time spent relative to the total
estimated time.
Interest income
Interest income is recognised over the term using
the effective interest method.
2.16 Leasing
Leases in which a significant portion of the risks and
rewards of ownership are retained by the lessor are
classified as operating leases. Payments made over
the course of the lease are charged to the income
statement over the lease period.
Leases of fixed assets where the Group substan-
tially retains all of the financial risks and rewards of
ownership are classified as finance leases. At the
start of the lease period, finance leases are rec-
ognised in the balance sheet at the lower of the
leased asset’s fair value and the present value of the
minimum lease payments.
2.17 Provisions
Provisions are recognised when the Group has a
present legal or constructive obligation as a result of
a past event and it is more probable than not that an
outflow of resources will be required to settle the ob-
ligation and a reliable estimate of the amount can be
made.
Provisions for warranty costs are estimates of
warranty claims and are estimated using accumulat-
ed experience in the form of statistics on historical
claims, the expected costs to remedy and the aver-
age time lag between a fault occurring and a claim
being made against the Group.
Provisions for restructuring costs include redun-
dancy costs and compensation for severance pay.
Provisions for restructuring are made when a de-
tailed formal plan for these exists and a valid expec-
tation has been created among those concerned.
Provisions are not recognised for future operating
losses.
2.18 Share capital
Ordinary shares are classified as equity.
2.19 Cash flow statement
The cash flow statement is prepared using the indi-
rect method. This means that operating profit/loss is
adjusted for transactions that did not involve re-
ceipts or disbursements during the period.
2.20 Parent company’s accounting policies
The parent company has prepared its annual report
in accordance with the Swedish Annual Accounts
Act and RFR 2 Accounting for Legal Entities. The par-
ent company applies different accounting policies
than the Group in the cases indicated below.
NOTE 2 CONT.

3.1 FINANCIAL RISK FACTORS
Through its activities, the Group is exposed to a vari-
ety of financial risks, such as market risk (including
currency risk, interest rate risk and commodity price
risk), credit risk and liquidity risk. The Group’s overall
strategy focuses on reducing potential adverse ef-
fects on the Group’s financial results.
A) MARKET RISK
(i) Currency risk
Currency risk consists of transaction risk (foreign cur-
rency transactions) and translation risk (foreign sub-
sidiaries or balance sheet items in foreign currency).
PPG has both transaction risk and translation risk.
Transaction risk
Transaction risk is the risk that the Group’s consoli-
dated net income and cash flow will be affected due
to changes in the value of commercial flows in for-
eign currencies upon changes in exchange rate. PPG
has no significant transaction risk because no signif-
icant transactions are done in foreign currency. A
very small percentage of the Group’s purchases of
materials is done in a currency other than the func-
tional currencies of the Group, which is why the
transaction risk is deemed very low.
Translation risk
The Group has a number of holdings in subsidiaries
whose functional currency does not correspond to
the presentation currency Euro (EUR). The net assets
of these subsidiaries are exposed to currency risk on
translation of the net assets to the presentation cur-
rency EUR. The subsidiaries that have a functional
currency other than EUR are the Swedish subsidiary,
which reports in Swedish kronor (SEK), the Norwe-
gian subsidiary, which reports in Norwegian kroner
(NOK), the Danish subsidiary, which reports in Dan-
ish kroner (DKK). PPG has no major balance sheet
items in foreign currencies and thus there is no sub-
stantial translation risk for this.
As of 31 December 2015, exchange rate differ-
ences recognised in the income statement with a
negative effect amounted to EUR -174 thousand
(-266).
Formats
The income statement and balance sheet follow the
format specified in the Annual Accounts Act. The
statement of changes in equity follows the Group’s
format, but contains the columns indicated in the
Annual Accounts Act. The formats for the parent
company differ by way of terms compared to the
consolidated account, particularly in respect of fi-
nancial income and expenses and items included in
equity.
Participations in subsidiaries
Participations in subsidiaries are recognised at cost
less any impairment. Cost includes any acquisi-
tion-related expenses and any additional consider-
ation.
When there is an indication that participations in
subsidiaries have decreased in value, the recoverable
value is estimated. If this is less than the carrying
amount, an impairment is applied. Impairments are
recognised in the item “Result from participations in
group companies”.
Shareholder contribution/group contribution
Shareholder contributions are recognised directly
against equity at the recipient and are capitalised in
shares and participations by the parent company to
the extent impairment is not required. Both paid and
received group contribution are recognised as results
from participations in subsidiaries in the income
statement.
Leasing
All leases, whether finance or operating, are reported
as operating leasing.
Financial instruments
The parent company does not apply IAS 39: Financial
Instruments Recognition and Measurement but in-
stead reports these as specified in the Annual Ac-
counts Act.
NOTE 2 CONT.
NOTE 3 FINANCIAL RISK MANAGEMENT

(ii) Interest rate risk
Interest rate risk refers to the risk of a negative im-
pact on earnings and cash flow upon a lasting
change in the market interest rate. PPG has inter-
est-bearing financial liabilities whose changes in re-
lation to market interest rates affect earnings and
cash flow from operating activities. Borrowings is-
sued at variable interest rates expose the Group to
cash flow interest rate risk, which is partially offset
by cash held at variable interest rates. As of 31 De-
cember 2015, the Group’s borrowings at variable in-
terest rates amounted to EUR 7 668 thousand (8
313). PPG has also fixed rate borrowings amounting
to EUR 1 902 thousand (9 443) as of 31 December
2015, which exposes the Group to interest rate risk
relating to the fair value. For further information on
fixed rate loans, see Note 24 Borrowings.
The Group has analysed its sensitivity to interest
rate changes. Given the same loan with variable in-
terest rate at year-end, a 1% change in the market
rate would change the Group’s interest expense by
about EUR 76 thousand annually.
(iii) Commodity price risk
PPG is exposed to price risk with respect to steel. The
Group uses a lot of steel in production and the pur-
chase prices of steel fluctuate with the market price.
Since PPG can adjust its prices to the customer de-
pending on changes in the steel price and as the
time from order to deliver is seldom longer than
three months, this is deemed to be no substantial
risk to PPG.
b) Credit risk
Credit risk or counterparty risk is the risk that the
counterparty of a financial transaction will not fulfil
its obligations at maturity. PPG’s credit risk primarily
comprises accounts receivable as well as liquid
funds. In relation to liquid funds, the credit risk is as-
sessed as low if the counterparty is a large, well-
known bank in Sweden (Nordea) with a high credit
rating (rating S & P, AA-). The major financial risk in
the Group is the credit risk in outstanding accounts
receivable. PPG’s policy is to check the creditworthi-
ness of new customers before they are accepted.
Only customers with a good credit rating are accept-
ed. As sales occur in several countries and to a variety
of customers, PPG has good risk diversification. The
Group has low credit losses. For furtherinformation,
see note 21.
c) Liquidity risk
Liquidity risk is the risk of not having access to liquid
funds or unutilised credit to fulfil payment obliga-
tions. To ensure adequate liquidity for operations,
the liquidity need is analysed each week by drawing
up liquidity forecasts for each company of the Group.
At year-end, the Group’s liquid funds totalled EUR
644 thousand (461). In addition, there are unutilised
bank overdraft facilities of EUR 1 349 thousand (1
514). PPG uses factoring facilities (i.e. pledges ac-
counts receivable) and a bank overdraft facility to se-
cure its liquidity. The factoring facility debt amounts
to EUR 2 543 thousand (3 465) and bank overdraft
facilities amount to EUR 4 925 thousand (4 628). For
further information, see notes 21 and 25. Loan fi-
nancing from a credit institution is dependent on
fulfilment of a number of key figures, covenants. Fail-
ure to fulfil such covenants could force the company
to renegotiate its financing.
Furthermore, the Group’s borrowings from share-
holders and former shareholders amounts to
EUR 1 902 thousand (12 996), of which EUR 0 thou-
sand (7 151) is the current portion, which will affect
the Group’s liquidity outflows in 2016. In addition,
there are unutilised credit facilities amounting to
EUR 0 thousand (0).The loans from shareholders and
former shareholders are not dependent on the fulfil-
ment of any key figures (covenants). For more infor-
mation on loans from shareholders, please refer to
note 24.
NOTE 3 CONT.

3.2 CAPITAL RISK MANAGEMENT
PPG’s goals regarding the capital structure are to
safeguard its ability to continue its operations so
that it can continue to generate return for share-
holders and benefits for other stakeholders, and to
maintain an optimal capital structure to keep capital
costs down. In relation to the capital structure, PPG
does not work based on any explicit quantitative tar-
gets beyond the legal requirements.
A long-term goal is to improve the Group’s debt/
equity ratio over time. This key figure is calculated as
equity divided by total assets. At the end of 2015, the
debt/equity ratio was 38.3% (1.2%).
The table below shows the contractual undiscounted cash flows from the Group’s financial liabilities classi-
fied according to the time on the balance sheet date until the contractual maturity date.
Per 31 December 2015
(tEUR)
Less
than 1 year
Between 1 and 2
years
Between 2 and 5
years
More than
5 years
Borrowings from shareholders - - - 1 902
Borrowings from former shareholders - - - -
Liabilities to credit institutions* 7 668 - - -
Accounts payable 6 140 - - -
Total 13 808 0 - 1 902
*The bank overdraft facility is renewed automatically within the framework agreement. The variable interest
rate in effect on 31 December has been used for the term.
NOTE 3 CONT.
Estimates of the values of balance sheet items and
assessments in applying accounting policies are con-
tinually evaluated and are based on historical experi-
ence and other factors, including expectations of fu-
ture events considered reasonable under the
circumstances.
Significant estimates and assessments for account-
ing purposes
The Group makes estimates and assumptions con-
cerning the future. The estimates for accounting
purposes that are based on these will, by definition,
seldom equal the actual results. The estimates and
assumptions that entail a significant risk of material
adjustments to the carrying value of assets and lia-
bilities within the next fiscal year are outlined below.
Testing of impairment need for goodwill
Each year, the Group tests whether there is any need
for impairment of goodwill in accordance with the
accounting policy described in note 2. The recover-
able amounts for cash-generating units have been
determined by calculating the value in use. These
calculations require the use of estimates. Impair-
ment testing is performed at each subsidiary. Note
14 contains a description of the significant assump-
tions made when testing the need for impairment of
goodwill. The reported value for goodwill is EUR 2
189 thousand (2 267).
Loss carryforwards
The Group tests annually whether it is appropriate
to capitalise on deferred tax assets attributable to
the year’s tax loss carryforward. Deferred tax assets
are only recognised for loss carryforwards for which
it is probable that they can be utilised against future
taxable surplus and against taxable temporary dif-
ferences. Changes in assumptions about future pro-
jected taxable income could result in significant dif-
ferences in the valuation of deferred taxes. PPG has
recognised a deferred tax asset related to a deficit of
EUR 717 thousand (1 125) that occurred during the
year. Accumulated loss carryforwards amount to
EUR 21 499 thousand (16 344) (see note 16 Deferred
taxes for additional information).
NOTE 4 SIGNIFICANT ESTIMATES AND ASSESSMENTS

Warranties
Several of the products sold by PPG are covered by
warranties that apply during a predetermined peri-
od. Provisions for such product warranties are based
on historical data and expected costs for quality
problems that are known or predicted. Provisions are
also made for extended warranties. Although chang-
es in assumptions could result in different valua-
tions, it is deemed unlikely that this could have a ma-
terial impact on the Group’s earnings and financial
position. The reported value for warranty provisions
amounts to EUR 284 thousand (293).
Obsolescence of inventory
Inventory is an essential part of PPG’s asset base and
the value of inventory is followed and reassessed on
a running basis. The inventory is valued at the lower
of cost and net realisable value following the first-in,
first-out principle (FIFO). The value of inventory is ad-
justed for estimated impairment for physical dam-
age, discontinued items, overstocking and other
forms of obsolescence. If the actual obsolescence
differs from these estimates or if management
makes future adjustments to the assumptions,
changes in the valuation could impact the results for
the period as well as the financial position. The re-
ported value for obsolescence amounts to EUR 1 307
thousand (1 128).
NOTE 4 CONT. NOTE 5 DISTRIBUTION OF NET TURNOVER
During the year, the parent company invoiced the
subsidiaries EUR 2 008 thousand (1 973) for group-
wide services. Purchases from subsidiaries totalled
EUR 61 thousand (73).

Group 2015 2014
Sweden 4 785 9 267
Norway 986 4 042
Denmark 7 355 8 494
Finland 4 257 4 475
Germany 22 448 23 250
France 11 696 14 551
Other markets 6 594 7 552
Total for the Group 58 121 71 631
Group 2015 2014
Sales of security products 25 072 28 608
Sales of security solutions 33 049 43 023
NOTE 6 PARENT COMPANY’S SALES TO AND
PURCHASES FROM GROUP COMPANIES
The breakdown of net turnover by geographic market is as
follows:
The breakdown of net turnover by type of revenue is as follows:
2015 2014 2015 2014
Direct material 25 652 31 322 - -
Changes in inventory 627 -252 - -
Costs of employee benefits 20 852 22 955 924 959
Temporary agency workers and subcontractors 4 047 6 767 666 196
Transport expenses 1 949 2 480 - -
Vehicle and travel expenses 2 113 2 447 89 106
Depreciation and amortisation of fixed assets 1 323 2 389 160 176
Costs for operating leases 1 554 2 217 552 521
Other expenses 7 296 6 275 98 31
Total cost of goods sold, selling and administrative 65 413 76 600 2 489 1 989
NOTE 7 EXPENSES BROKEN DOWN BY NATURE
Group Parent company

Audit assignment refers to the examination of the
annual accounts and the management work of the
board and CEO. Audit work beyond the audit assign-
ment refers to other quality assurance services re-
NOTE 8 REMUNERATION TO THE AUDITORS
2015 2014 2015 2014
KPMG
Audit assignment 149 125 47 30
Audit work beyond the audit assignment 10 33 6 4
Tax advice 22 34 0 7
Other services 16 20 0 10
Total 197 212 53 51
Other auditors
Audit assignment 0 9 - -
Audit work beyond the audit assignment 0 12 - -
Tax advice 7 3 7 -
Other services 0 1 - -
Total 7 25 7 -
TOTAL 204 237 60 51
quired through an enactment, articles of association,
statue or agreement. Tax advice includes both advis-
ing and review of compliance in relation to taxes. Ev-
erything else falls under other assignments.
NOTE 9 EMPLOYEE BENEFITS, ETC.
Group 2015 2014
Salaries and other benefits 16 316 17 532
Social security contributions 3 800 4 714
Pension costs – defined contribution plans 736 709
Remuneration to board members, managing directors and other senior executives was paid in the amount of
EUR 1 009 thousand (1 073), of which bonuses were EUR 43 thousand (37). Of the Group’s pension costs, EUR
115 thousand (97) were to managing directors and other senior executives.
Under the current agreement, the CEO has a notice period of 6 months for termination on the part of the
company as well as on the part of the individual. Other senior executives have a notice period of 12 or 6 months
for termination on the part of the company as well as 6 months on the part of the individual.
Of the three board members elected by the AGM, all are men. Group management consists of three men.
No MD salary was paid by the parent company. Compensation to board members and other senior executives
was paid in the amount of EUR 367 thousand (431), of which bonuses amounted to EUR 0 thousand (8). Of the
parent company’s pension costs, EUR 74 thousand (46) were to other senior executives.
Parent company 2015 2014
Salaries and other benefits 589 690
Social security contributions 221 184
Pension costs – defined contribution plans 114 85
Total for the parent company 924 959

Average number of employees with geographical
breakdown by country
Average number
of employees
Of which are
women
Average
number of
employees
Of which are
women
Sweden 4 2 4 1
Total for the parent company 4 2 4 1
Subsidiaries
Sweden 21 4 34 7
Norway 7 1 9 1
Denmark 43 6 42 6
Finland 25 1 25 1
Estonia - - 14 -
Russia - - 1 -
Germany 164 24 157 18
France 99 12 100 12
Total for the subsidiaries 359 48 382 45
Group
NOTE 9 CONT.
NOTE 10 PENSION OBLIGATIONS
The Group has defined benefit pension plans in Swe-
den (Alecta pension insurance) and in France, plus
defined contribution pension plans in other coun-
tries.
The Swedish pension insurance with Alecta is re-
ported as defined contribution as the Group has not
had access to information that makes it possible to
report this plan as defined benefit. The French pen-
sion obligation is not deemed to be significant and
therefore no additional information is given.
The Group’s cost for pension plans totals EUR 736
thousand (709).
Pension insurance with Alecta
Commitments for retirement pension and family
pension for employees in Sweden are secured
through insurance with Alecta. According to a state-
ment from the Swedish Financial Reporting Board,
UFR 3, this is a defined benefit plan that covers sever-
al employers. For the 2015 fiscal year, the Group has
not had access to information that makes it possible
to report this plan as a defined benefit plan. The ITP
pension plan that is secured through insurance with
Other operating income 2015 2014 2015 2014
Other 588 872 36 10
Total 588 872 36 10
Other operating expenses 2015 2014 2015 2014
Other -216 -173 -55 -
Total -216 -173 -55 -
NOTE 11
OTHER OPERATING INCOME AND OPERATING EXPENSES
Alecta is therefore reported as a defined contribu-
tion plan. The fees for the year for pension insurance
with Alecta amount to EUR 68 thousand (136). Alec-
ta’s surplus can be distributed to the policyholders
and/or the insured. At the end of 2015, Alecta’s sur-
plus in the form of the collective consolidation ratio
amounted to 153 percent (143%). The collective con-
solidation ratio is the market value of Alecta’s assets
as a percentage of the insurance commitments cal-
culated according to Alecta’s actuarial assumptions,
which are not consistent with IAS 19.
Parent company

2015 2014 2015 2014
Result from participations in group companies
Subsidiaries in bankruptcy 178 - - -
Impairment of financial assets, subsidiaries - - -81 -
Impairment of participations in subsidiaries - - -3 975 -6 480
Impairment of goodwill -73
Total 105 - -4 056 -6 480
Financial income
Interest income on bank deposits 2 7 - -
Interest income from group companies - - 206 229
Other financial income -
Exchange gains - - - -
Total 2 7 206 229
Financial expenses
Interest expenses on borrowings from the owners -10 -350 -10 -294
Interest expenses on borrowings and liabilities to credit institutions -585 -560 -177 -170
Interest expenses on pension obligations -2 -5 - -
Interest expenses from group companies - - -11 -1
Exchange losses -174 -141 -100 -100
Other financial expenses -78 -72 -1 -16
Total -849 -1 128 -299 -581
Group
NOTE 12 FINANCIAL INCOME AND EXPENSES
Income tax on the profit differs from the theoretical amount that would have arisen using the weighted aver-
age tax rate for the profits in the consolidated companies as follows:
2015 2014 2015 2014
Current tax on profit/loss for the year -48 -135 - -
Deferred tax -10 -579 - -
Income tax -58 -714 - -
Group
NOTE 13 INCOME TAX/TAX ON PROFIT/LOSS FOR THE YEAR
2015 2014 2015 2014
Profit/loss before tax -7 635 -5 375 -5 222 -7 445
Income tax calculated according to national tax rates applicable to
profits in the respective country
1 909 1 212 1 149 1 638
Tax effects of:
- Non-deductible expenses and non-taxable income -1 015 -285 -892 -1 488
- Impairment of goodwill -16 -222 - -
- Effect of change in tax rate - -4 - -
- Tax losses for which no deferred tax asset is recognised -942 -1 421 -257 -150
- Other 6 6 - -
Income tax -58 -714 0 0
Group
Parent company
Parent company
Parent company

TPPG - Annual Report 2015

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