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SinterCast

Quarterly Report Nov 3, 2021

3200_10-q_2021-11-03_73836cfb-916e-44ff-a0fd-8ff9cd3e45a2.pdf

Quarterly Report

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Continued Positive Progress

Third Quarter 2021

  • Revenue for Period: SEK 25.3 million (SEK 19.2 million)
  • Operating Result: SEK 8.0 million (SEK 3.6 million)
  • Earnings per Share: SEK 1.0 per share (SEK 0.5 per share)
  • Cashflow from Operations: SEK 13.2 million (SEK -2.7 million)
  • September marks third highest monthly production in SinterCast history
  • Mini-System 4000 installed for product development at industrial power foundry in Asia
  • Positive installation outlook for fourth quarter

2021 Year-to-Date

  • Revenue for Period: SEK 77.8 million (SEK 62.5 million)
  • Operating Result: SEK 23.7 million (SEK 12.3 million)
  • Earnings per Share: SEK 3.6 per share (SEK 1.9 per share)
  • Cashflow from Operations: SEK 28.7 million (SEK 15.8 million)
  • Installed Base: 55 (57) installations in 14 Countries (25 (26) fully automated systems, 24 (26) mini-systems and six (five) tracking systems)
  • Dividend Payment: second instalment of SEK 2.00 per share to be paid on 24 November 2021, with record date of 19 November 2021

Series Production*

Annualised series production remained at 3.2 million Engine Equivalents in the third quarter, reinforcing the recovery of the past year. Together, 2Q and 3Q 2021 tied as the third highest quarters in SinterCast series production history.

CEO Comments

Strong series production; positive growth outlook

Series production remained strong throughout the third quarter, with many customers bypassing the traditional summer shutdown period to meet the market demand, providing the second-highest July on record. The quarter closed with 3.6 million Engine Equivalents in September, representing the third highest month in SinterCast history, only surpassed by September and October 2019, at 3.9 million and 3.7 million Engine Equivalents respectively. Ultimately, series production for the third quarter finished at 3.2 million Engine Equivalents, providing 14% year-onyear growth and 29% year-to-date growth. In perspective, the second and third quarters both finished at 3.2 million Engine Equivalents, jointly becoming the third highest quarters in SinterCast history.

Revenue for the quarter increased by 32%, with approximately half of the increase coming from higher series production and half coming from increased engineering service and equipment sales as international travel started to resume. Year-to-date revenue benefitted from a 29% increase in series production and a 67% increase in Sampling Cup shipments, but was offset by lower installation revenue and unfavourable exchange rates. Ultimately, the year-to-date revenue finished up by 25%.

The ongoing semiconductor supply challenges continued to hinder vehicle production in some of our key highvolume programmes. Although some improvements and stabilisation have been realised, it is reasonable to expect that the supply challenges will remain well into 2022, and perhaps beyond. In our largest end-user market in North America, semiconductor shortages have led to all-time low vehicle inventory levels and strong demand for new vehicles. Ultimately, the pent up demand and the need to rebuild vehicle inventories provides the basis for a strong and sustained production outlook that is expected to drive demand into 2023. The near-term production outlook is also buoyed by the pending start of commercial vehicle engine production at FAW in China and at Scania in Sweden, with strong growth expected in 2022 and 2023, providing the ambition to reach the four million Engine Equivalent milestone during 2022.

Busy fourth quarter for installations

Installation revenue in the third quarter amounted to SEK 2.5 million, primarily due to the installation of a Mini-System 4000 for product development at an undisclosed industrial power foundry in Asia. The formal completion of the System 4000 Plus installations at Scania and FAW were also realised during the third quarter, contributing to the revenue. The outlook for the fourth quarter is particularly busy, with planned installations of a System 4000 at the Impro foundry in Mexico and a Ladle Tracker at the Hyundai foundry in Korea. These activities provide the opportunity for fourth quarter revenue to challenge the first three quarters and to increase the installation revenue to a historical full-year average of approximately SEK 8 million before year-end.

Installation discussions are ongoing for CGI process control systems, capacity upgrades, and Tracking Technologies installations. In addition to these current installation opportunities, SinterCast is also investigating the development of other unique technologies – within and beyond the scope of thermal analysis – to improve quality and production efficiency in the metals industry, and to broaden our product portfolio and our production base.

Financial Summary

Revenue

The revenue for the SinterCast Group relates primarily to income from equipment, series production and engineering service.

Revenue Breakdown July−September January−September
(Amounts in SEK million) 2021 2020 2021 2020
Equipment1 2.5 0.3 4.2 6.8
Series production2 22.1 18.8 72.4 55.2
Engineering service3 0.7 0.1 1.3 0.5
Total 25.3 19.2 77.8 62.5
Number of Sampling Cups shipped 35,400 32,900 156,300 97,800
  1. Includes revenue from sold and leased CGI and Tracking systems and spare parts

  2. Includes revenue from consumables, production fees and software licence fees

  3. Includes revenue from engineering service, demonstrations and test pieces

The July−September 2021 revenue increased by 32% to SEK 25.3 million (SEK 19.2 million). Series production revenue amounted to SEK 22.1 million (SEK 18.8 million) following annualised series production of 3.2 million (2.8 million) Engine Equivalents and Sampling Cup shipments of 35,400 (32,900) units. Equipment revenue amounted to SEK 2.5 million (SEK 0.3 million).

The January−September 2021 revenue increased by 24% to SEK 77.8 million (SEK 62.5 million). Series production revenue amounted to SEK 72.4 million (SEK 55.2 million) following annualised series production of 3.1 million (2.4 million) Engine Equivalents and shipment of 156,300 (97,800) Sampling Cups. Equipment revenue amounted to SEK 4.2 million (SEK 6.8 million). Engineering Service amounted to SEK 1.3 million (SEK 0.5 million).

Results

The business activities of SinterCast are best reflected by the Operating Result. This is because the "Result for the period after tax" and the "Earnings per Share" are influenced by the financial income and costs and by the revaluation of tax assets.

Results Summary July−September January−September
(Amounts in SEK million if not otherwise stated) 2021 2020 2021 2020
Operating result 8.0 3.6 23.7 12.3
Result for the period after tax 7.4 3.7 25.7 13.3
Earnings per share (SEK) 1.0 0.5 3.6 1.9

The July−September 2021 operating result increased by 122% to SEK 8.0 million (SEK 3.6 million). The increase is primarily because of a SEK 6.1 million increase in revenue, resulting in a SEK 4.4 million increase in gross margin; an increase in operating costs of SEK 1.4 million, primarily due to increases in the number of employees; and, increases in other operating income of SEK 1.3 million. The result for the period after tax increased by 102% to SEK 7.4 million (SEK 3.7 million).

The January−September 2021 operating result increased by 93% to SEK 23.7 million (SEK 12.3 million). The increase is primarily because of a SEK 15.3 million increase in revenue, resulting in a SEK 10.8 million increase in gross margin; an increase in operating costs of SEK 2.5 million, primarily due to increases in the number of employees; and, increases in other operating income of SEK 3.2 million. Tax income amounted to SEK 3.9 million (SEK 0.0 million) following the revaluation of the deferred tax asset. The result for the period after tax increased by 93% to SEK 25.7 million (SEK 13.3 million). During the period, no government support in relation to Covid-19 has been received.

Cashflow, Liquidity and Investments

Cashflow Summary January−September Cashflow Changes
(Amounts in SEK million if not otherwise stated) 2021 2020 2021 vs 2020
Cashflow from operations, before change in working capital 25.0 15.4 9.6
Change in working capital 3.7 0.4 3.3
Cashflow from operations 28.7 15.8 12.9
Cashflow from investing activities -2.7 -1.8 -0.9
Cashflow from financing activities -14.9 -1.0 -13.9
Cashflow total 11.1 13.0 -1.9
Liquidity 37.4 45.9

The January−September 2021 cashflow from operations increased by SEK 12.9 million, compared to the same period last year, primarily related to the SEK 11.4 million increase in operating result. Total investments amounted to SEK 2.7 million (SEK 1.8 million). Cashflow from financing activities decreased by SEK 13.9 million, primarily due to the first dividend payment 2021 in the amount of SEK 14.2 million (SEK 0.0 million). Total cashflow amounted to SEK 11.1 million (SEK 13.0 million). Liquidity on 30 September 2021 was SEK 37.4 million (SEK 45.9 million). SinterCast has no loans.

Income Tax and Deferred Tax Asset

Tax income for the January−September 2021 period amounted to SEK 3.9 million (SEK 0.0 million), comprised of SEK 4.0 million due the reassessed deferred tax calculation and the payment of SEK 0.1 million of income tax. The estimated future taxable profit and deferred tax asset calculation is reassessed every quarter. As of 30 September 2021, SEK 233.5 million (SEK 214.1 million) of the SinterCast total carried-forward tax losses are the basis of the updated calculation, resulting in SEK 48.1 million (SEK 44.1 million) being capitalised as a deferred tax asset. The deferred tax asset calculation is based on historical eight-year average currency rates.

Risks and Uncertainty Factors

Uncertainty factors for SinterCast include the timing of OEM decisions for new CGI engines and other components, adherence to start-of-production dates and ramp projections, the global economy for new vehicle sales, technology trends and emissions legislation, and the individual sales success of vehicles equipped with SinterCast-CGI components.

Covid-19 – and related material and labour shortages – remain the dominant near-term risk factor for the global foundry and automotive industries. While it is prudent to expect that series production may be influenced well into 2022 and perhaps beyond, SinterCast remains confident in the long-term growth of CGI. Other factors that may

influence the market risk for SinterCast and its end-user industries include the current global political uncertainty, the renegotiation of international tariffs and free-trade agreements on vehicle sales, climate change legislation and the associated growth of alternative powertrain technologies, and the overall demand for goods transportation.

No significant risk of material adjustment to the carrying amounts of assets and liabilities has been identified at the balance sheet date and no costs have been taken to the profit and loss due to Covid-19.

For additional risk and uncertainty factor information, see Note 26 on pages 65–70 in the SinterCast Annual Report 2020.

Organisation

With successful high volume CGI production in customer foundries located in Europe, Asia and the Americas, SinterCast has established a global organisation with employees and offices in Sweden, the United Kingdom, the United States, China, Korea and Germany. As of 30 September 2021, the Group had 30 (27) employees, 6 (5) of whom are female. Recent personnel increases ensure that SinterCast is well positioned to support global market activities and to drive the future growth of the company.

Parent Company

SinterCast AB (publ) is the Parent Company of the SinterCast Group, with its registered office located in Stockholm, Sweden. On 30 September 2021, the Parent Company had 25 (22) employees. The average number of employees during the period was 24 (20). The majority of the operations are managed by the Parent Company while local operations in the United Kingdom, United States, Korea and China are managed by the local companies. The information given for the Group in this report corresponds in all material respects to the Parent Company. However, the result for the period may differ between the group and the Parent Company due to intercompany transactions between the Parent Company and its subsidiaries.

Accounting Principles

The information provided on behalf of the group in this interim report has been prepared in accordance with Sweden's Annual Accounts Act and IAS 34 Interim Financial Reporting. The reporting for the Parent Company has been prepared in accordance with Sweden's Annual Accounts Act, chapter 9 interim report, and RFR 2. The accounting policies that have been applied for the group and the Parent Company agree with the accounting policies used in the preparation of the company's latest Annual Report.

Fair Value Measurement of Financial Assets and Liabilities

The group has Financial assets consisting of derivative instruments (included in other debtors or other creditors) and commercial papers and fixed income instruments. The fair value of derivative instruments, not traded on an active market, is based on observable market currency rates. Cash flows are discounted using market interest rates. Commercial papers and fixed income instruments are traded on an active market and the fair value is determined by available market prices. These effects are recognised in the profit & loss statement.

Rounding

The total amount shown in tables and statements may not always sum to the same value due to rounding differences. The primary objective is for each line item to correspond to the source. This may sometimes result in rounding or truncation differences in the total.

Alternative Performance Measures are defined and included in this report in the Key Ratio and Share Data tables. More information of Accounting Policies is included in the Annual Report 2020, pages 42-49.

Material Transactions and Events after the Balance Sheet Date

No material transactions have taken place between SinterCast and the Board or the Management during the period. There have been no significant events since the balance sheet date of 30 September 2021 that could materially change these financial statements. The following press release has been issued:

8 October 2021 – Series production reaches 3.6 million Engine Equivalents in September

Annual General Meeting

The Annual General Meeting 2022 of SinterCast AB (publ) will be held on Tuesday 17 May 2022.

Shareholders wishing to have a matter considered at the Annual General Meeting should provide written submissions to [email protected] or to the company: SinterCast AB (publ), Kungsgatan 2, 641 30 Katrineholm, Sweden, at least seven weeks prior to the Annual General Meeting for the proposal to be included in the notice of the meeting. Further details on how and when to register will be published in advance of the Annual General Meeting.

Nomination Committee

The Nomination Committee, elected by the Annual General Meeting 2021, consists of Victoria Skoglund, Chairman, Andrea Fessler, Jan Åke Jonsson, Chairman of the Board of Directors, Aage Figenschou and Carina Andersson. Shareholders wishing to provide input or proposals should provide written submissions to the Nomination Committee (e-mail: [email protected]) at least seven weeks prior to the Annual General Meeting for the proposal to be included in the notice of the meeting.

Information

Interim Reports Publication Date October–December 2021 and Full Year Results 2021 8 February 2022 January–March 2022 27 April 2022 April–June 2022 17 August 2022 July–September 2022 4 November 2022

This report has been reviewed by the company's Auditors.

Stockholm 3 November 2021

For further information please contact:

Dr. Steve Dawson President & CEO SinterCast AB (publ) Office: +46 150 794 40 Mobile: +44 771 002 6342 e-mail: [email protected] website: www.sintercast.com CIN: 556233-6494

This press release contains information SinterCast AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the President & CEO Dr. Steve Dawson, at 08:00 CET on 3 November 2021.

SinterCast is the world's leading supplier of process control technology for the reliable high volume production of Compacted Graphite Iron (CGI). With at least 75% higher tensile strength, 45% higher stiffness and approximately double the fatigue strength of conventional grey cast iron and aluminium, CGI allows engine designers to improve performance, fuel economy and durability while reducing engine size, weight, noise and emissions. The SinterCast technology is used for the production of petrol and diesel engine cylinder blocks and exhaust components for passenger vehicles, medium-duty and heavy-duty cylinder blocks and heads for commercial vehicles, and industrial power engine components for agriculture, marine, rail, off-road and stationary engine applications. SinterCast supports the series production of components ranging from 2.7 kg to 9 tonnes, all using the same proven process control technology. As a specialist supplier of precision measurement and process control solutions to the metals industry, SinterCast also supplies the SinterCast Ladle Tracker® and SinterCast Cast Tracker® technologies, to improve process control, productivity and traceability in a variety of applications. With 55 installations in 14 countries, SinterCast is a publicly traded company, quoted on the Small Cap segment of the Nasdaq Stockholm stock exchange (SINT). For more information: www.sintercast.com

Review report

To the Board of Directors of SinterCast AB (publ.)

Corp. id. 556233-6494

Introduction

We have reviewed the condensed interim financial information (interim report) of SinterCast AB (publ.) as of 30 September 2021 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm

KPMG AB

Jonas Eriksson Authorized Public Accountant

Income Statement – Group

July−September January−September January−December
Amounts in SEK million 2021 2020 2021 2020 2020 2019
Revenue 25.3 19.2 77.8 62.5 95.4 116.5
Cost of goods sold -6.3 -4.6 -22.0 -17.5 -27.1 -27.5
Gross result 19.0 14.6 55.8 45.0 68.3 89.0
Cost of sales and marketing -6.0 -5.4 -19.3 -17.8 -25.0 -27.3
Cost of administration -2.8 -2.1 -7.0 -5.9 -8.5 -8.9
Cost of research & development -3.3 -3.2 -8.7 -8.7 -11.6 -12.0
Other operating income 1.0 0.0 2.9 0.0 0.0 0.0
Other operating costs 0.0 -0.3 0.0 -0.3 -1.6 -0.7
Operating result 8.0 3.6 23.7 12.3 21.7 40.1
Financial income 0.0 0.3 0.1 1.3 1.1 0.2
Financial costs -0.5 -0.2 -2.0 -0.4 -0.5 -0.4
Financial net -0.5 0.1 -1.9 1.0 0.6 -0.2
Result before income tax 7.4 3.7 21.8 13.3 22.3 39.9
Income tax 0.0 0.0 3.9 0.0 -0.1 8.3
Result for the period 7.4 3.7 25.7 13.3 22.2 48.2
Result attributable to:
Equity holder of the parent company 7.4 3.7 25.7 13.3 22.2 48.2
Non-controlling interests - - - - - -
Earnings per share, SEK 1.0 0.5 3.6 1.9 3.1 6.8
Earnings per share, diluted, SEK 1.0 0.5 3.6 1.9 3.1 6.8
Number of shares at the close of the period, thousands 7090.1 7090.1 7090.1 7090.1 7090.1 7090.1
Average number of shares, thousands 7090.1 7090.1 7090.1 7090.1 7090.1 7090.1
Average number of shares, diluted 7090.1 7090.1 7090.1 7090.1 7090.1 7090.1

Statement of Result and Other Comprehensive Income – Group

July−September January−September January−December
Amounts in SEK million 2021 2020 2021 2020 2020 2019
Result for the period 7.4 3.7 25.7 13.3 22.2 48.2
Other comprehensive income
Items may be reclassified to the income statement
Translation differences, foreign subsidiaries 0.1 0.0 0.3 -0.1 -0.4 -0.2
Other comprehensive income, net of tax 0.1 0.0 0.3 -0.1 -0.4 -0.2
Total comprehensive income for the period 7.5 3.7 26.0 13.2 21.9 48.0
Total comprehensive income attributable to:
Shareholder of the parent company 7.5 3.7 26.0 13.2 21.9 48.0
Non-controlling interests - - - - - -

Balance Sheet – Group

30 Sep 30 Sep 30 Jun 30 Jun 31 Dec 31 Dec
Amounts in SEK million 2021 2020 2021 2020 2020 2019
ASSETS
Intangible assets 6.5 6.1 6.9 6.5 6.2 6.7
Tangible assets* 6.2 6.7 6.4 7.1 6.7 4.5
Other long term receivables 4.3 5.8 5.8 0.4 5.8 0.4
Deferred tax asset 48.1 44.1 48.1 44.1 44.1 44.1
Total fixed assets 65.1 62.7 67.2 58.2 62.8 55.8
Inventory 10.9 12.5 10.0 10.9 9.4 8.4
Short-term receivables 25.4 23.9 33.6 23.6 29.1 30.6
Short term deposits and cash at bank and in hand 37.4 45.9 24.7 49.3 26.4 32.9
Total current assets 73.6 82.3 68.2 83.7 64.9 71.8
Total assets 138.7 144.9 135.4 141.9 127.7 127.6
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 120.6 124.9 113.3 121.1 108.8 111.7
Long term liabilities* 2.5 3.2 2.7 3.6 3.2 1.9
Current liabilities* 15.6 16.8 19.3 17.1 15.7 14.0
Total liabilities 18.1 20.0 22.0 20.7 18.9 15.9
Total shareholders' equity and liabilities 138.7 144.9 135.4 141.9 127.7 127.6

* Includes right of use assets (SEK 3.1 million), long term lease liability (SEK 2.5 million) and short term liabilities (SEK 0.9 million)

Statement of Changes in Equity – Group

Share Additional Exchange Cumulative
Amounts in SEK million Capital Paid in Capital Differences Results Total Equity
Opening balance 1 January 2020 7.1 44.9 1.6 58.1 111.7
Total comprehensive income - - -0.1 13.4 13.2
Closing balance 30 September 2020 7.1 44.9 1.5 71.5 124.9
Opening balance 1 January 2021 7.1 44.9 1.2 55.6 108.8
Total comprehensive income - - 0.3 25.7 26.0
Dividend - - - -14.2 -14.2
Closing balance 30 September 2021 7.1 44.9 1.5 67.1 120.6

Cashflow Statement – Group

July−September January−September January−December
Amounts in SEK million 2021 2020 2021 2020 2020 2019
Operating activities
Operating result 8.0 3.6 23.7 12.3 21.7 40.1
Adjustments for items not included in the cash flow
Depreciation 1.0 1.0 2.9 2.8 3.7 3.2
Other 0.0 0.0 0.0 0.0 0.0 0.0
Unrealised exchange rate differences -0.7 0.0 -1.3 0.0 0.5 -0.2
Received interest 0.0 0.0 0.0 0.0 0.0 0.1
Paid interest -0.1 0.2 -0.3 0.3 -0.4 -0.2
Paid income tax 0.0 0.0 0.0 0.0 -0.1 0.0
Total cashflow from operating activities 8.2 4.8 25.0 15.4 25.4 43.0
before change in working capital
Change in working capital
Inventory 0.5 -1.6 0.0 -4.1 -1.1 -1.8
Operating receivables 8.2 -5.6 3.7 1.3 -3.9 -5.3
Operating liabilities -3.7 -0.3 -0.1 3.2 1.7 2.0
Total change in working capital 5.0 -7.5 3.7 0.4 -3.3 -5.2
Cashflow from operations 13.2 -2.7 28.7 15.8 22.1 37.8
Investing activities
Acquisition of intangible assets -0.2 0.0 -1.9 -0.7 -1.2 -0.6
Acquisition of tangible assets -0.2 -0.3 -0.8 -1.1 -1.6 -0.6
Cashflow from investing activities -0.4 -0.3 -2.7 -1.8 -2.8 -1.2
Financing activities
Payment lease liability -0.2 -0.4 -0.7 -1.0 -1.1 -1.0
Dividend -- -- -14.2 -- -24.8 -35.5
Cashflow from financing activities -0.2 -0.4 -14.9 -1.0 -25.9 -36.5
Exchange rate differences in cash and cash equivalents 0.0 0.0 0.0 0.0 0.0 0.0
Cashflow for the period 12.6 -3.4 11.1 13.0 -6.6 0.1
Cash - opening balance 24.7 49.3 26.3 32.9 32.9 32.8
Cash - closing balance* 37.4 45.9 37.4 45.9 26.3 32.9

* The cash and cash equivalents comprise short-term deposits and cash at bank and in hand

Key Ratio and Share Data – Group

July−September January−September January−December
Amounts in SEK million 2021 2020 2021 2020 2020 2019
Key Ratio
Revenue* 25.3 19.2 77.8 62.5 95.4 116.5
Operating result 8.0 3.6 23.7 12.3 21.7 40.1
Operating margin % 31.4 18.7 30.4 19.7 22.7 34.4
Result for the period* 7.4 3.7 25.7 13.3 22.2 48.2
Solidity, % 87.0 86.2 87.0 86.2 85.2 89.7
Shareholders' equity 120.6 124.9 120.6 124.9 108.8 111.7
Capital employed 123.1 128.1 123.1 128.1 112.0 113.6
Total assets 138.7 144.9 138.7 144.9 127.7 127.6
Return on shareholders' equity, % 6.4 3.1 22.4 11.2 20.2 45.7
Return on capital employed, % 6.2 3.0 21.1 11.0 19.7 45.7
Return on total assets, % 5.4 2.7 18.6 9.8 17.4 40.5
Employees
Number of employees at the end of the period 30 27 30 27 28 23
Data per Share
Earnings per share, SEK* 1.1 0.5 3.6 1.9 3.1 6.8
Dividends per share, SEK 2.0 -- 2.0 -- 3.5 5.0
Cashflow from operations per share, SEK 1.2 -0.4 2.2 2.2 3.9 5.3
Share price at the end of the period, SEK 146.6 135.4 146.6 135.4 124.2 195.0

* According to IFRS. All other key ratios and share data are defined as Alternative Performance Measures (APMs).

Definition of key rations can be found in the last Annual Report, note 29.

Operating margin % Weighted average of the number of shares outstanding for the
Operating results as percentage of revenue period
Solidity % Average number of shares adjusted for dilution
Adjusted shareholders' equity expressed as percentage of total Weighted average of the number of shares for the period adjusted
assets end of period for dilution
Equity per share Earnings per share
Shareholders' equity divided by the average number of shares Result for the period divided by the average number of shares
Capital employed Earnings per share, diluted
Total assets less non-interest bearing liabilities Result for the period divided by the average number of shares
Return on shareholders' equity % adjusted for dilution
Result for the period as a percentage of average shareholders' Dividend per share
equity. Quarterly values are not annualised Dividend divided by the number of shares
Return on capital employed % Cashflow from operations per share
Result for the period as a percentage of average capital employed Cashflow from operations divided by the number of shares
Quarterly values are not annualised Share price at the end of the period
Return on total assets % Latest paid price for the SinterCast share at NASDAQ Stockholm
Result for the period as a percentage of total average assets. Value presented as "0.0"
Quarterly values are not annualised Amount below SEK 50,000
Average number of shares Value presented as "-"
No amount applicable

Income Statement – Parent Company

July−September January−September January−December
Amounts in SEK million 2021 2020 2021 2020 2020 2019
Revenue 25.0 19.2 77.0 62.1 94.6 115.2
Cost of goods sold -7.0 -4.9 -22.7 -17.7 -27.5 -27.8
Gross result 18.0 14.3 54.3 44.4 67.1 87.4
Gross result % 72% 74% 71% 71% 71% 76%
Cost of sales and marketing -6.1 -5.3 -19.6 -18.0 -25.0 -27.3
Cost of administration -2.7 -2.3 -7.0 -6.2 -8.6 -8.9
Cost of research & development -3.3 -3.1 -8.7 -8.7 -11.6 -12.0
Other operating income 1.2 0.0 2.9 0.0 0.0 0.0
Other operating costs 0.0 0.0 0.0 0.0 -0.8 -1.2
Operating result 7.1 3.6 21.9 11.5 21.1 38.0
Financial income -1.0 0.3 0.1 1.4 1.1 0.2
Financial costs 0.5 0.0 -1.8 -0.1 -0.1 -0.1
Financial net -0.5 0.2 -1.7 1.2 1.0 0.1
Result before income tax 6.6 3.8 20.2 12.7 22.1 38.1
Income tax 0.0 0.0 4.0 0.0 -0.1 8.3
Result for the period 6.6 3.8 24.2 12.7 22.0 46.4
Result attributable to:
Equity holder of the parent company 6.6 3.8 24.2 12.7 22.0 46.4
Non-controlling interests - - - - - -
Earnings per share, SEK 0.9 0.5 3.4 1.8 3.1 6.5
Earnings per share, diluted, SEK 0.9 0.5 3.4 1.8 3.1 6.5
Number of shares at the close of the period, thousands 7090.1 7090.1 7090.1 7090.1 7090.1 7090.1
Average number of shares, thousands 7090.1 7090.1 7090.1 7090.1 7090.1 7090.1
Average number of shares, diluted 7090.1 7090.1 7090.1 7090.1 7090.1 7090.1

Statement of Result and Other Comprehensive Income – Parent Company

July−September January−September January−December
Amounts in SEK million 2021 2020 2021 2020 2020 2019
Result for the period 6.6 3.8 24.2 12.7 22.0 46.4
Total comprehensive income for the period 6.6 3.8 24.2 12.7 22.0 46.4

Balance Sheet – Parent Company

30 Sep 30 Sep 30 Jun 30 Jun 31 Dec 31 Dec
Amounts in SEK million 2021 2020 2021 2020 2020 2019
ASSETS
Intangible assets 6.5 6.1 6.9 6.5 6.2 6.7
Tangible assets 3.0 2.4 3.0 2.4 2.8 1.8
Other long term receivables 6.0 7.7 7.4 2.3 7.4 2.3
Deferred tax asset 48.1 44.1 48.1 44.1 44.1 44.1
Total fixed assets 63.6 60.3 65.4 55.3 60.4 54.9
Inventory 10.7 12.2 9.8 10.7 9.3 8.3
Short-term receivables 29.6 27.2 35.8 24.9 30.7 32.2
Short term deposits and cash at bank and in hand 33.4 42.0 21.9 47.7 22.7 30.5
Total current assets 73.7 81.4 67.4 83.4 62.7 71.0
Total assets 137.3 141.8 132.8 138.7 123.2 125.9
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity* 110.7 116.2 104.1 112.3 100.7 103.4
Current liabilities 26.6 25.6 28.7 26.3 22.5 22.4
Total liabilities 26.6 25.6 28.7 26.3 22.5 22.4
Total shareholders' equity and liabilities 137.3 141.8 132.8 138.7 123.2 125.9

Statement of Changes in Equity – Parent Company

Restricted Equity Unrestricted Equity
Reserve Share Results Results
Share Statutory Developm. Premium brought for the Total
Amounts in SEK million Capital Reserve Costs Reserve Forward Year Equity
Open balance 1 January 2020 7.09 9.53 5.2 35.3 -0.1 46.4 103.5
Appropriation of last year's result - - - - 46.4 -46.4 0.0
Capitalised development costs - - 0.7 - -0.7 - 0.0
Depreciation, development costs - - -1.1 - 1.1 - 0.0
Total comprehensive income - - - - - 12.7 12.7
Closing balance 30 September 2020 7.09 9.53 4.9 35.3 46.6 12.7 116.2
Open balance 1 January 2021 7.1 9.5 5.0 35.3 21.7 22.0 100.7
Appropriation of last year's result - - - - 22.0 -22.0 0.0
Capitalised development costs - - 1.7 - -1.7 - 0.0
Depreciation, development costs - - -1.3 - 1.3 - 0.0
Total comprehensive income - - - - - 24.2 24.2
Dividend - - - - -14.2 - -14.2
Closing balance 30 September 2021 7.1 9.5 5.4 35.3 29.1 24.2 110.7

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