A long-term approach

Responsible approach for long-term success

Since our beginnings more than 70 years ago, we have created a global Group and a presence worldwide as well as a solid platform for further expansion with profitability. Clear shared values and longterm ownership are behind the continuity and stability in the Group.

Innovative products from the start

The development of innovative products has been fundamental right from the start. The manufacture of the tubular element, which was

a new, easily applicable heating component for households and industry, began back in 1949 and laid the foundation for today’s NIBE Element business area.

The manufacture of NIBE’s water heaters began in 1952, the same

year a law was passed requiring milk producers to have hot water in their milking parlours. With innovative product development based on this platform, our very first heat pump was introduced in 1981. This

was then further developed into the NIBE Climate Solutions business area.

NIBE won a sub-contract to manufacture stoves under the Handöl brand in 1965, and Handöl’s entire operations were subsequently acquired. This was the start of establishing the NIBE Stoves business

area.

Committed, innovative leaders

Committed, innovative founders and leaders have been a key cornerstone in NIBE’s stable expansion and solid financial development.

The Bernerup family, landowners from Scania, founded the two companies Backer Electro-Värme AB and NIBE-Verken AB, and from

the initials in Nils Bernerup’s first and last names the company name

NIBE was born. With two external operational managers, the family ran the companies for 40 successful years.

When the family decided to sell both companies in 1989, several

employees and two external investors formed NIBE Industrier AB and acquired all operations. At the same time, Gerteric Lindquist was appointed Managing Director and CEO.

To allow for further expansion and to broaden ownership, a new share issue was implemented in 1997 and in connection with this

NIBE Industrier AB was listed on the Stockholm Stock Exchange.

An intensive era of acquisitions

Good results combined with a stock market listing and the opportunities for access to the fresh capital this provided created the conditions for an intensive era of acquisitions and development into a global group.

The acquisitions today make us: • a leading European heat pump supplier and market leader in North

America in heat pumps, both for single-family homes and commercial properties.

• one of the world-leading element suppliers, with many new product groups and a strong local presence in a great number of countries around the world.

• a European market leader in stoves, with a stable platform in North America for stoves.

A stable platform for the future

With our focus on sustainable energy solutions, stable growth with profitability and a market-oriented decentralised organisation guided by NIBE’s objectives and management philosophy, we believe that we have created a stable platform for the future.

Together with continued good organic growth, good acquisition opportunities, solid finances and stable ownership, this builds a solid

foundation for the continued sustainable development of our business.

Good relationships create longevity

Good leadership and good relationships with employees create a secure and stable workplace in the long-term. To be able to achieve our goals in the future, it is crucial that NIBE, as a large global employer, continues to attract new skilled and committed employees, in addition to retaining its existing workforce.

Committed employees

Our goal is for all our employees to thrive, develop and feel proud of their work and their place of work. If you want to thrive in our company, initiative, humility and common sense make a winning combination. Our ambition is to be perceived as an attractive employer

with many opportunities for advancement. Because of our growing need for skilled employees, we both develop our existing employees and recruit for the future. Our internal training efforts and the educational collaboration we have with external partners, universities, colleges and other schools augments our ability to ensure long-term staffing needs.

We collaborate with several schools to ensure a good supply of staff for our long-term business plans. Young people of all ages are

invited to visit our companies to learn about the opportunities available and encourage them to study. We also have firmly established partnerships with universities

and institutes of higher education, offering opportunities for joint

development projects, degree projects and internships, both locally and internationally.

Our shared values and a clear code of conduct must guide our decisions and day-to-day operations and encompass all employees worldwide. During the induction process, all new employees receive training in our code of conduct and associated policies. We must

treat each other with respect and leaders and managers must set a good example in terms of honesty and straightforward communication. Through our decentralised leadership, we can maintain simple

organisational structures with an independent operational leadership with a local character.

Good working conditions

We work systematically to improve the working environment at all our plants to create safe workplaces and reduce ill-health, regardless of employment status. As part of our strategy for achieving this goal, our plants should have management systems for health and safety and, in some cases, also systems certified by a third party. We regularly ensure that working conditions in our operations meet our standards via site visits.

Our companies have the same rules and values regarding wages. We adhere to the laws of each individual country and do not pay

less than the minimum wage. The majority of our employees are permanent employees or temporary employees. In countries that traditionally have short-term types of employment, employee turnover is high but locally adapted activities are being implemented at these companies to increase engagement and willingness to stay with the company.

Our employees must also avoid conflicts of interest between private financial matters and the company’s business activities. We do

not provide financial support to political organisations or to individuals. If situations arise where there is a risk of anti-competitive behaviour, we investigate them using external resources.

Respect for human rights

Our employees, with their unique experience, knowledge and talents, add great value to our operations. We conduct a global business with significant cultural and social differences, and so it is important for us to have a framework for both diversity and equal treatment.

Everyone should have the same development, training and career opportunities, and no one should be discriminated against.

We operate in countries where violation of human rights may occur but in our own companies, respect for human rights and our employees’ right to freedom of association and collective bargaining, as well as the right to refuse to join an association, is unequivocal.

In cases where our companies have dormitories adjacent to the workplace, we work continuously on improvements to ensure that the accommodation meets local standards.

Local partnerships for the future

For us it is important to take local social responsibility in the places where we have operations, for example with regard to jobs and skill retention. This makes us a natural part of the development of the