Report on operations 2009

• Inflow of orders: SEK 8,424 million (9,455) • Net sales: SEK 8,825 million (9,742) • Operating earnings: SEK 529 million (941) • Net earnings for the year: SEK 345 million (592) • Cash flow from operating activities after tax: SEK 1,356 million (1,004) • Earnings per share: SEK 12.78 (18.10) 2) • Proposed dividend: SEK 9.00 (9.00)

President and CEO Peter Aru: “Cardo performed relatively well during 2009 and succeeded in changing its product and market mix in a very difficult market situation. In the fourth quarter, moreover, the Group succeeded in exceeding its operating margin compared with 2008, adjusted for costs of a non-recurring nature and impairment of real estate. With a strong cash flow and low net interest bearing debt, the starting position ahead of 2010 is good, even though there remains uncertainty concerning the economic situation.” Results - complete report Please see the enclosed pdf document for the complete report where all tables and summaries are found. The report is available at www.cardo.com Fourth quarter 2009 The inflow of orders amounted to SEK 2,001 million (2,296), down 12% after adjustment for the effects of exchange rate movements. The divisions Pulp & Paper Solutions and Residential Garage Doors show an increased inflow of orders and the trend in Asia-Pacific remained good. Net sales amounted to SEK 2,522 million (3,033), down 19% adjusted for the effects of exchange rate movements. Operating earnings amounted to SEK 218 million (456). Operating earnings were charged with costs of a non-recurring nature of SEK 133 million to adapt the organization to the prevailing demand, allocated as cost of goods sold of SEK 40 million and selling and administrative expenses of SEK 93 million. During the quarter, cost of goods sold was also charged with impairment of real estate of SEK 36 million. Full year 2009 The inflow of orders amounted to SEK 8,424 million (9,455), down 18% after adjustment for the effects of exchange rate movements. The inflow of orders decreased in all markets except Asia-Pacific. During the year, price competition was particularly significant within the divisions Door & Logistics Solutions and Wastewater Technology Solutions. Net sales amounted to SEK 8,825 million (9,742), down 16% adjusted for the effects of exchange rate movements. The service share of net sales amounted to 38% (33) for the full year. Operating earnings amounted to SEK 529 million (941). Operating earnings were charged with costs of a non-recurring nature of SEK 199 million to adapt the organization to prevailing demand, allocated as cost of goods sold of SEK 61 million and selling and administrative expenses of SEK 138 million. Cost of goods sold was charged with a further SEK 36 million for impairment of real estate. Costs of a non-recurring nature will affect cash flow by a total of SEK 173 million, whereof SEK 66 million affected 2009. The savings effect during 2009 amounted to SEK 75 million and the full annual savings effect of approximately SEK 220 million is expected from the third quarter of 2010. OTHER MATTERS Changed divisional structure 2010 Cardo’s present four divisions are being coordinated into two under the divisional names Cardo Entrance Solutions and Cardo Flow Solutions. Reporting will be carried out under the new divisional names as of the first quarter 2010. Operations are being coordinated by integrating the present divisions Door & Logistics Solutions and Residential Garage Doors into a single division, Cardo Entrance Solutions. The division Wastewater Technology Solutions and the pump business within Pulp & Paper Solutions are being coordinated in the division Cardo Flow Solutions. The head of the Cardo Entrance Solutions division is Ove Bergkvist and the head of Cardo Flow Solutions is Peter Aru. The measuring instruments business within the present Pulp & Paper Solutions will constitute an independent unit within the Group. The head of the unit is Patrik Stolpe. THE NOMINATION COMMITTEE’S PROPOSAL FOR THE BOARD OF CARDO Cardo’s nomination committee proposes re-election of the Board members Fredrik Lundberg, who is also proposed for re-election as Chairman of the Board, Peter Aru, Johnny Alvarsson, Carina Malmgren Heander, Tuve Johannesson, Ulf Lundahl and Lennart Nilsson and election of Katarina Martinson and Krister Mellvé as new members of the Board. Anders Rydin has declined re-election as a member of the Board. Katarina Martinson is 28 years old and a graduate business administrator. She has held posts that include that of analyst at International Strategy & Investment Group, New York, and Strategas Research Partners, New York. Since 2009, she has been working in asset management and is a deputy member of the board of L E Lundbergföretagen AB and a member of the board of AB Lorentzen & Wettre. Krister Mellvé is 60 years old and a graduate business administrator. For the past 20 years he has been working for the German company Robert Bosch, holding posts that include that of president in Sweden, Australia and South Korea. ANNUAL GENERAL MEETING The Annual General Meeting will be held in Malmö, Sweden, on Wednesday, April 7 2010 at 5.00 p.m. ANNUAL REPORT The annual report for 2009 will be presented during the week beginning March 15 2010, on Cardo’s website at www.cardo.com. Printed annual reports will be sent to those shareholders and others who have specially indicated that they wish to receive this publication by ordinary mail. Malmö, Sweden, February 4 2010 Cardo AB (publ) Board of Directors This report has not been subjected to special examination by the Company’s auditors. INVITATION TO CONFERENCE, FINANCIAL HEARINGS, IN STOCKHOLM TODAY FEBRUARY 4 AT 10.00 A.M. Cardo’s President and CEO Peter Aru will comment on the report on operations at a conference today at 10.00 a.m. at Operaterassen in Stockholm. Notification of intention to attend may be made at www.financialhearings.com or via e-mail to hearing@financialhearings.com. It will also be possible to take part and ask questions via telephone number +46 (0)8 505 137 86. The conference may also be followed via a webcast at www.cardo.com or www.financialhearings.com, where you will also be able to listen and see the presentation slides afterwards. The conference will be held in Swedish. Financial calendar 2010 April 7, Annual General Meeting in Malmö May 4, Interim Report January – March August 13, Interim Report January – June November 12, Interim Report January - September

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