GRI-Appendix

102-1 - Name of the orgaization

NIBE Industrier AB

102-2 - Activities, brands, products and services

The company manufacture products for indoor climate, heating, cooling and hot water. The company also produces applications for energy efficiency for both household and commercial use as well as components for infrastructure and wind energy. Business area Stoves produces wood and gas burning stoves and fireplaces, as well as electric fireplaces.
The Group does not manufacture products that are under ban in any countries or markets. There are however, different legal or customer driven requirements that needs to be followed for individual markets.

A general discussion about particle emission and air quality in cities to some extent touch upon the use of wood burning stoves.

See www.nibe.com for more fully descriptions of brands, products and services.

102-3 - Location of headquarters

NIBE is a Swedish company with its roots in the southern province of Småland and head office in Markaryd.

102-4 - Location of operations

NIBE is present in 21 countries in Europe, North America, Asia and Australia.
For detailed information about locations, see Annual report page 96-98.

102-5 - Ownership and legal form

NIBE is listed on the NASDAQ OMX Stockholm Exchange, Large Cap list, with a secondary listing on the SIX Swiss Exchange.
NIBE’s 2017 Annual Report covers trademarks, ownership, changes in structure and size, geographical market presence, and a detailed account of financial results and key figures.

102-6 - Markets served

NIBE is an international Group in heating technology and energy efficiency with sales in Europe, North America, Asia, Australia and other markets.
The Group consists of three business areas covering different product segments directed towards several industries:

1. NIBE Climate Solutions provides sustainable energy solutions for indoor comfort through a wide range of products for heating, cooling, ventilation, heat recovery and hot water heating for houses, apartment blocks and other large buildings, including commercial real estate.

2. NIBE Element provides components and solutions for measurement, control and heating designed for producers and users of industrial and consumer products.

3. NIBE Stoves offers stoves, fireplaces and chimney systems for different types of houses and commercial buildings.

End customers exist in a wide range from households to large building complexes, industries and manufacturers of for example cars or household appliances, construction companies and infrastructure applications.

102-7 - Scale of the organization

During 2017 the average number of employees (headcount) was 14,300 (11,900) in 21 countries in Europe, North America, Asia and Australia.

Group sales in 2017 totaled 19,009 (15,348) million with an operating margin of 12,3 (12.9) percent. NIBE Climate Solutions accounted for 62 (62) percent of sales, NIBE Element 26 (27) percent and NIBE Stoves for the remaining 12 (11) percent.

This report includes 54 (44) production units and 28 (25) sales units see below table. Companies acquired during 2017 are not included. For details about assets, capitalization, shareholders and total number of operations, please see Annual report.

102-8 - Information on employees and other workes

The number of employees as full time equivalents (FTE) was in total 12 248 (13,100) by the end of 2017.

102-9 - Supply chain

The supply chain consists of approximately 6,000 (3,500) suppliers of direct material. The highest purchase volumes come from suppliers in Europe and North America. The product categories that represent most value are metals and electronics.

With many suppliers NIBE work closely and long-term, often developing components and parts for our products together. The procurement of direct material is to some extent centralized, and indirect material purchasing is made entirely locally.

102-10 - Significant changes to the organization and its supply chain

In 2017 NIBE Group acquired 7 (10) companies, adding approximately SEK 1,7 billion or X percent to annual sales. These acquisitions affected the reporting of financial data for 2017, but will not affect the non-financial reporting until the first full year in the Group after acquisition.

These companies have been added since previous reporting period:

Air-Site AB

ATE-Electronics S.r.l.

Backer Hotwatt Inc

Climate Control Group

Fireplace Products Australia Pty Ltd

Fireplace Products U.S. Inc.

FPI Fireplace Products International Ltd

Heatron Inc

Omni Control Technology Inc

The manufacturing operation of Akvaterm in Finland was moved to the Kaukora plant. There are no other significant changes.

The number of reported Suppliers have changed due to revised reporting standard. NIBE now report suppliers in two categories: Direct and Indirect suppliers. Another reason for change is the number of new companies entering the Group during 2016.

102-11 - Precautionary Principle or approach

NIBE applies a precautionary approach in connection to any changes in products or in the production processes. Before implementing changes, that could have negative environmental or safety impact, the management are required to carry out preventative risk assessments.

All production companies within NIBE Group, with more than 10 employees, are to be certified according to ISO 14001. Requirement for newly acquired companies are to be certified within two full years after acquisition. Systematic risk assessments and a precautionary approach is a mandatory part of ISO 14001.

102-12 - External initiatives

NIBE signed Global Compact in 2014 and committed in 2016 to six of the 17 sustainable development goals in Agenda 2030. NIBE also reports according to CDP and gives financial support to organizations like Hand-in-Hand and SOS Children's Villages.
The individual companies within NIBE Group are free to choose local initiatives to support, within the framework of our values and business principles.

102-13 - Membership of associations

NIBE has actively chosen to participate in a number of industry organizations and standard organizations, on national, EU and international level. The objective is to advocate NIBE's interests, contribute with expertise and opinions as well as to keep informed of the current development. Each business area decides where to participate and to which extent based on the strategic needs for their industry and product categories. This means there is no such membership on Group level.