Note 4 - Net sales and operating income

All amounts in SEKm unless otherwise stated

The vast majority of the Group’s revenues consisted of product sales. Revenue from service activities amounted to SEK 1,337m (1,258).

The Group’s operating income included net exchange-rate differences in the amount of SEK 158m (–53). Depreciation and amortization charge for the year amounted to SEK 3,251m (3,173). Costs for research and development amounted to SEK 1,651m (1,669) and are included in the item Cost of goods sold. Salaries, remunerations and employer contributions amounted to SEK 17,057m (16,237) and expenses for post-employment benefits amounted to SEK 527m (425).

Government grants relating to expenses have been deducted in the related expenses by SEK 48m (156). Government grants related to assets have been recognized as deferred income in the balance sheet and will be recognized as income over the useful life of the assets. In 2012, these grants amounted to SEK 739m (121). The increase of government grants in 2012 relates to the construction of a new factory in Memphis, Tennessee in the USA.

The Group’s net sales in Sweden amounted to SEK 3,849m (4,210). Exports from Sweden during the year amounted to SEK 3,480m (3,863), of which SEK 2,781m (3,124) were to Group subsidiaries. The Group’s Swedish factories accounted for 2.0% (1.6) of the total value of production.