Elanders

Earnings Release • Jan 27, 2014

Press release from Elanders AB (publ) 2014-01-27

January-December

• Net sales increased by 9 % to MSEK 2,096 (MSEK 1,924).
• The operating result, not including one-off items, increased to MSEK 132 (104), which is an improvement of 27 % over the same period last year.
• The operating result, including one-off items, increased to MSEK 131 (119).
• The result before tax, not including one-off items, increased to MSEK 103 (78), which was an improvement of 32 %.
• The result before tax, including one-off items, increased to MSEK 102 (93).
• The net result amounted to MSEK 70 (45) or SEK 3.08 (2.05) per share.
• Operating cash flow was MSEK 50 (67), of which acquisitions were MSEK -103 (-126).
• In January 2014 Elanders signed an agreement for the acquisition of Mentor Media Ltd, a supply chain company with a strong presence in Asia. The acquisition will increase Elanders' annual net sales to around 3.5 billion Swedish crowns and the number of employees will rise from some 1,900 to 3,600.
• The Board proposes to increase the dividend by 33 % compared to the previous year to SEK 0.80 (0.60) per share.
• A significant improvement in profit compared to 2013 is forecasted for 2014.
• As already announced a guaranteed rights issue of around SEK 125 million, to finance part of the acquisition of Mentor Media, will be proposed by the board. The shareholders will be requested to resolve on the rights issue at the annual general meeting on 24 April 2014. The board will propose a subscription price of SEK 33 per share and that six existing shares entitle to subscription for one new share.

The fourth quarter

• Net sales increased by 13 % to MSEK 598 (527).
• The operating result, not including one-off items, increased to MSEK 60 (46), which is an improvement of 30 % over the same period last year.
• The operating result, including one-off items, increased to MSEK 54 (48).
• The result before tax, not including one-off items, increased to MSEK 53 (59), which was an improvement of nearly 36 %.
• The result before tax, including one-off items, increased to MSEK 47 (41).
• The net result increased to MSEK 35 (8) or SEK 1.53 (0.36) per share.
• Operating cash flow amounted to MSEK 104 (-20), of which acquisitions were MSEK 0 (-126).

COMMENTS BY THE CEO

Just as in previous years the fourth quarter was a strong quarter for Elanders with an operating margin of ten percent, not including one-off items. This can be compared to nine percent for the same period last year and it was Elanders' best quarter since 2007. This shows that the measures we have taken and the strategic shift we have initiated continue to bear fruit. Our investment in e-Commerce with the acquisition of d|o|m, fotokasten and myphotobook is one of the reasons for the improvement and these acquisitions also lived up to our high expectations.

In January 2014 Elanders passed an important milestone when we signed an agreement for the acquisition of the Singapore-based Supply Chain company Mentor Media Ltd. The constellation of Elanders and Mentor Media will have net sales of close to 3.5 billion Swedish crowns and some 3,600 employees. Elanders will grow by around 60 percent through this acquisition and become a

complete supplier in Supply Chain. We also climb up the value chain and reduce our exposure to traditional print. What makes this acquisition particularly interesting is that Mentor Media has a strong position in Asia and Elanders now will have around 40 % of its net sales in Asia.

The acquisition of Mentor Media and myphotobook has accelerated Elanders' strategic shift to reduce our exposure to traditional print and given us a significantly stronger platform for continued development and expansion of our business. With these acquisitions we have also achieved the goal we formed for 2017, that Commercial Print's share of total net sales in the Group should be less than 40 percent.

Magnus Nilsson President and Chief Executive Officer

	Full year
MSEK	2013	2012	2011
Net sales	2,096	1,924	1,839
Operating expenses	-1,965	-1,805	-1,729
Operating result	131	119	110
Net financial items	-29	-25	-30
Result after financial items	102	93	80

Three year overview

MSEK	2013	Fourth quarter 2012 2011
Net sales	598	527	538
Operating expenses	-544	-479	-481
Operating result	54	48	57
Net financial items	-7	-6	-8
Result after financial items	47	41	49

GROUP

Our Business

The Elanders Group offers global solutions in the product areas Supply Chain, Print & Packaging and e-Commerce. Elanders Group is acting as a strategic partner for its customers in their work to optimize and develop the processes critical to their business. Elanders AB's shares are listed on NASDAQ OMX Stockholm, Small Cap.

From 2014 Elanders Group has three product areas with a number of strong brands;

Supply Chain

Mentor Media, Elanders Group's brand in Supply Chain Management, is one of the leading companies in the world in this field. The company takes responsibility for and optimizes their customers' material and information flows, everything from sourcing and procurement combined with warehousing to after sales service.

Print & Packaging

Elanders, the Group's brand in Print & Packaging, through its innovative force and global presence offers cost-effective solutions that can handle customer's local and global needs for printed material and packaging.

e-Commerce

fotokasten, myphotobook and d|o|m are the Group's brands in e-Commerce. Through the technical solutions for e-Commerce provided by d|o|m, fotokasten and myphotobook offer a broad range of photo products, primarily to consumers.

Net sales and result

January-December

Consolidated net sales increased by MSEK 172 to MSEK 2,096 (1,924), i.e. 9 % compared to the same period last year. The newly acquired Midland and myphotobook are primarily responsible for the increase in net sales. The period has been characterized by a relatively weak demand from customers in the manufacturing industry, primarily in Western Europe and North America. Excluding acquisitions and disposals and using constant exchange rates net sales contracted by 3 % compared to the same period last year.

The operating result, excluding one-off items, increased to MSEK 132 (104), corresponding to an operating margin of 6 (5) %. Including one-off items the operating result for the period was MSEK 131 (119). The one-off items are primarily book VAT recognized as revenue, restructuring costs for operations in Sweden and Germany and consultation costs in connection with acquisitions.

In August Elanders signed an agreement for the acquisition of the German myphotobook GmbH, one of Europe's leading e-commerce companies in the sales of personalized photo products to consumers. myphotobook has its headquarters in Berlin and is currently represented in 16 countries in Europe. In 2012 the company had net sales of around MEUR 15. The purchase price was MEUR 10.5 and the company was consolidated as of 30 September 2013. The acquisition is expected to have several synergies with Elander's existing operations in fotokasten and d|o|m.

Elanders acquired the label printer McNaughtan's in Scotland in February. The company has annual net sales of around MGBP 2 and several well known whisky distillers are customers. Their products are mainly labels with extremely high quality and a high level of enrichment.

From 2010 to 2012 Elanders submitted claims for VAT refunds to the Swedish Tax Agency pertaining to 2004 through 2007. In 2011 and 2012 the Swedish Tax Agency made consequential amendments regarding many of Elanders' customers who have then demanded compensation from Elanders. It is Elanders' position that the Swedish Tax Agency cannot make consequential amendments. Several judgments from the Court of Appeals in Stockholm, Gothenburg and Jönköping have supported Elanders' position. The Swedish Tax Agency has appealed some of the decisions and sought reconsideration by the Supreme Administrative Court. Reconsideration has now been granted however it is uncertain when the case will be heard but probably in 2014. Until the Supreme Administrative Court has rendered its decision Elanders believes there is still a great deal of uncertainty regarding the rest amounts for 2004 and 2007 and therefore it is difficult to assess what effect they will have on Elanders' result.

On 7 July 2011 the Swedish Tax Agency presented its position regarding income tax for graphic companies that have claimed a refund of outgoing VAT. The Swedish Tax Agency's position is that the graphic companies that have

made a claim for the refund of outgoing VAT must recognize this revenue as income in the year the claim is made to the Swedish Tax Agency and not, as Elanders has applied, the year the refund has been paid or at least when the income can be reliably expected. As a result the Swedish Tax Agency has raised Elanders' taxable income for the fiscal year of 2010 by MSEK 70. Elanders is in the opinion that Elanders is right in this matter and has contested this decision. Our total exposure is around MSEK 16, since we can only set off some of the refund against the loss carryforwards Elanders has. During the first quarter 2013 the period of respite for these MSEK 16 ended and a payment for this amount was made. This did not have any effect on Group result since it is recompensed by an increase in loss carry-forwards. However, it did have a negative effect on Elanders' cash flow and net debt for the period. The case is expected to be heard in the Court of Appeals in Gothenburg in February 2014.

Fourth quarter

Consolidated net sales increased during the fourth quarter by MSEK 71 to MSEK 598 (527), i.e. 13 %. The newly acquired Midland and myphotobook are primarily responsible for the increase in net sales. Excluding acquisitions and disposals and using constant exchange rates net sales contracted by 5 %. The reduction is due to a relatively weak demand from customers in the manufacturing industry, primarily in Western Europe and North America. The operating result, excluding one-off items, improved and amounted to MSEK 60 (46), corresponding to an operating margin of 10 (9) %. Including one-off items, the operating result for the period was MSEK 54 (48). One-off items during the current year are primarily consultation costs in connection with acquisitions. Previous year one-off items were primarily attributable to book VAT recognized as revenue and restructuring costs.

Personnel

January-December

The average number of employees during the period was 1,864 (1,587), of which 391 (406) were in Sweden. At the end of the period the Group had 1,898 (1,780) employees.

Fourth quarter

The average number of employees during the period was 1,906 (1,614), of which 362 (416) were in Sweden.

Investments and depreciation

January-December

Investments for the period totaled MSEK 164 (197) of which MSEK 103 (126) were acquisitions. Depreciation for the period was MSEK 98 (91).

Fourth quarter

Investments for the period totaled MSEK 13 (161) of which acquisitions were MSEK 0 (126). Depreciation for the period was MSEK 24 (23).

Financial position, cash flow, equity ratio and financing

Group net debt on 31 December 2013 amounted to MSEK 739 (688). The increase since the previous year-end is a result of the acquisitions of myphotobook and McNaughtan's, which were financed by external credits. Operating cash flow for the year amounted to MSEK 50 (67), of which acquisitions were MSEK -103 (-126) In the fourth quarter operating cash flow was MSEK 104 (-20), of which acquisitions were MSEK 0 (-126).

In September Elanders signed a new two-year credit agreement with the company's main banks. The agreement ends on 30 September 2015 and will not generate any significantly higher costs for financing.

PARENT COMPANY

The Parent company has provided joint Group services during the period. The average number of employees during the period was 9 (8) and at the end of the period 9 (8).

OTHER INFORMATION

Elanders' vision

Elanders' vision is to be one of the leading companies in the world in global solutions for supply chain, print & packaging and ecommerce. By leading we do not necessarily mean largest. We mean the company that best meets the customers' requirements on effectiveness and delivery capability.

Elanders' strategies to fulfill our vision and support our business concept are:

• Develop local customers with global needs into global customers.
• Optimize use of the Group's global production and delivery capacity.
• Create uniform and automated processes in the Group.
• Develop products for future needs that can be used in our current business.
• Broaden our customer base and product offer to lower sensitivity to fluctuations in the business cycle.

Risks and uncertainties

Elanders divides risks into circumstantial risks (the future of printed matter and business cycle sensitivity), financial risks (currency, interest, financing and credit risks) as well as business risks (customer concentration, operational risks, risks in operating expenses as well as contracts and disputes). These risks, together with a sensitivity analysis, are described in detail in the Annual Report 2012. Circumstances in the world around us since the Annual Report was published are not believed to have caused any significant risks or influenced the way in which the Group works with these compared to the description in the Annual Report 2012.

Seasonal variations

The Group's net sales, and thereby income, are affected by seasonal variations. Elanders normally has a strong fourth quarter.

Events after the balance sheet date

In January 2014 Elanders signed an agreement for the acquisition of Mentor Media Ltd, a supply chain company with a strong foothold in Asia. The acquisition will increase Elanders' annual net sales to around 3.5 billion Swedish crowns and the number of employees will rise from some 1,900 to 3,600. Mentor Media will be consolidated into Elanders as of 1 January 2014 and is expected to contribute a substantial

increase in profit already in 2014. The purchase price is around MSEK 312 on a debt- and cashfree basis. As part of the financing of the acquisition the Board of Elanders intends to propose a new issue with preference for existing shareholders of some MSEK 125. The shareholders will be requested to resolve on the rights issue at the annual general meeting on 24 April 2014. As already announced, the rights issue will be guaranteed in its entirety by Carl Bennet AB. A full proposal regarding the rights issue, with full terms and timetable, will be published in connection with the notice of the annual general meeting. However, the board can already now announce that it will propose a subscription price of SEK 33 per share and that six existing shares entitle to subscription for one new share in Elanders. Carl Bennet AB, with shares representing around 74 percent of the votes, supports the proposal. The rights issue is expected to be completed by end of May/beginning of June 2014.

At the end of January Elanders' Group Management was expanded to include Lim Kok Khoon, CEO for Mentor Media, and Thomas Sheehan, President for Midland and ElandersUSA . Lim Kok Khoon will be responsible for Supply Chain Solutions globally and Thomas Sheehan for Print & Packaging Solutions in the Americas

No other significant events have taken place after the balance sheet date up to the date of this report was signed

Forecast

A significant improvement in profit compared to 2013 is forecasted for 2014.

Review and accounting principles

The company auditors have not reviewed this report. The quarterly report for the Group has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and for the parent company in accordance with the Annual Accounts Act.

The same accounting principles and calculation methods as those in the last Annual Report have been used.

Nomination committee

The nomination committee for the Annual General Meeting on 24 April 2014 is as follows:

Carl Bennet (Chair) Carl Bennet AB Hans Hedström Carnegie Fonder Britt-Marie Årenberg representative for the smaller shareholders

Future reports from Elanders

Q1 2014 24 April 2014 Q2 2014 17 July 2014 Q3 2014 22 October 2014 Q4 2014 27 January 2015

Contact information

Further information can be found on Elanders' website www.elanders.com or requested via e-mail info@elanders.com.

Questions concerning this report can be made to:

Magnus Nilsson Andréas Wikner Elanders AB (publ) Phone +46 31 750 07 50 Phone +46 31 750 07 50 P.O. Box 137

President and CEO Chief Financial Officer (Company ID 556008-1621) 435 23 Mölnlycke, Sweden Phone +46 031 750 00 00

This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail

GROUP

Group - Income statements

	Full year
MSEK	2013	2012
Net sales	2,096.3	1,924.2
Cost of products and services sold	-1,591.4	-1,557.2
Gross profit	505.0	367.0
Sales and administrative expenses	-415.6	-313.9
Other operating income	50.3	78.5
Other operating expenses	-8.7	-13.1
Operating result	131.0	118.5
Net financial items	-29.5	-25.1
Result after financial items	101.5	93.4
Income tax	-31.5	-48.9
Result for the year	70.0	44.5
Result for the year attributable to:
- parent company shareholders	70.0	44.6
- non-controlling interests	-	-0.1
Earnings per share, SEK 1) 2)	3.08	2.05
Average number of shares, in thousands	22,730	21,646
Outstanding shares at the end of the year, in thousands	22,730	22,730

	Fourth quarter
MSEK	2013	2012
Net sales	597.9	527.3
Cost of products and services sold	-423.2	-425.6
Gross profit	174.7	101.6
Sales and administrative expenses	-125.0	-93.4
Other operating income	6.6	44.5
Other operating expenses	-2.2	-5.1
Operating result	54.0	47.6
Net financial items	-7.5	-6.4
Result after financial items	46.5	41.2
Income tax	-11.7	-32.9
Result for the period	34.8	8.2
Result for the period attributable to:
- parent company shareholders	34.8	8.2
Earnings per share, SEK 1) 2)	1.53	0.36
Average number of shares, in thousands	22,730	22,730
Outstanding shares at the end of the period, in thousand	22,730	22,730

1) Earnings per share before and after dilution.

2) Earnings per share calculated by dividing the result for the year by the average number of outstanding shares during the year.

Group - Statements of comprehensive income

	Full year
MSEK	2013	2012
Result for the year	70.0	44.5
Translation differences, net after tax	28.4	-30.4
Cash flow hedges, net after tax	2.0	-0.8
Hedging of net investment abroad, net after tax	-1.9	1.9
Total items that may be reclassified to profit or loss	28,5	-29.3
Other comprehensive income, net after tax	28.5	-29.3
Total comprehensive income for the year	98.5	15.2
Total comprehensive income attributable to: - parent company shareholders	98.5	15.3
- non-controlling interests	-	-0.1

	Fourth quarter
MSEK	2013	2012
Result for the period	34.8	8.2
Translation differences, net after tax	31.4	10.8
Cash flow hedges, net after tax	0.0	-0.4
Hedging of net investment abroad, net after tax	-3.0	-1.1
Total items that may be reclassified to profit or loss	28.4	9.3
Other comprehensive income, net after tax	28.4	9.3
Total comprehensive income for the period	63.2	17.5
Total comprehensive income attributable to: - parent company shareholders	63.2	17.5

Group - Statements of cash flow

		Helår
MSEK	2013	2012
Result after financial items	101.5	93.4
Adjustments for items not included in cash flow	80.6	97.6
Paid tax	-56.9	-23.3
Changes in working capital	3.1	47.0
Cash flow from operating activities	128.3	214.7
Net investments in intangible and tangible assets	-66.3	-71.9
Acquisition and disposal of operations	-102.7	-126.3
Payments received regarding long-term holdings	4.8	1.7
Cash flow from investing activities	-164.2	-196.5
Changes in long- and short-term borrowing	90.8	82.4
Dividend to parent company shareholders	-13.6	-9.8
Cash flow from financing activities	77.2	72.6
Cash flow for the year	41.3	90.8
Liquid funds at the beginning of the year	168.0	81.2
Translation difference	6.1	-4.0
Liquid funds at the end of the year	215.3	168.0
Net debt at the beginning of the year	688.3	675.5
Translation difference in net debt	-0.3	-3.6
Net debt in acquired operations	-17.7	-7.8
Change in net debt	68.5	24.2
Net debt at the end of the year	738.9	688.3
Operating cash flow	50.5	66.6

		Fourth quarter
MSEK	2013	2012
Result after financial items	46.5	41.2
Adjustments for items not included in cash flow	14.5	35.3
Paid tax	-9.7	-7.1
Changes in working capital	47.9	57.4
Cash flow from operating activities	99.2	126.8
Net investments in intangible and tangible assets	-14.3	-35.3
Acquisition and disposal of operations	-0.1	-126.8
Payments received regarding long-term holdings	1.6	1.2
Cash flow from investing activities	-12.8	-160.9
Changes in long- and short-term borrowing	6.0	55.5
Cash flow from financing activities	6.0	55.5
Cash flow for the period	92.4	21.4
Liquid funds at the beginning of the period	116.6	146.4
Translation difference	6.3	0.2
Liquid funds at the end of the period	215.3	168.0
Net debt at the beginning of the period	824.4	626.5
Translation difference in net debt	0.5	3.2
Net debt in acquired operations	-	0.4
Change in net debt	-86.0	58.2
Net debt at the end of the period	738.9	688.3
Operating cash flow	103.6	-20.5

Group – Statements of financial position

MSEK	December 31 2013 2012
Assets
Intangible assets	1,156.4	1,031.3
Tangible assets	350.4	347.1
Other fixed assets	165.0	140.1
Total fixed assets	1,671.7	1,518.6
Inventories	107.2	115.7
Accounts receivable	387.4	392.5
Other current assets	82.3	66.4
Cash and cash equivalents	215.3	168.0
Total current assets	792.2	742.6
Total assets	2,463.9	2,261.2
Equity and liabilities
Equity	1,038.6	953.8
Liabilities
Non-interest-bearing long-term liabilities	69.1	56.5
Interest-bearing long-term liabilities	432.4	46.9
Total long-term liabilities	501.5	103.4
Non-interest-bearing current liabilities	402.1	394.6
Interest-bearing current liabilities	521.8	809.4
Total current liabilities	923.9	1,204.0
Total equity and liabilities	2,463.9	2,261.2

Group - Statements of changes in equity

MSEK	Equity attributable to parent company shareholders	Equity attributable to non controlling interests	Total equity
Opening balance on 1 Jan. 2012	879.5	0.1	879.6
Dividend to parent company shareholders	-9.8	-	-9.8
New share issue	68.8	-	68.8
Total comprehensive income for the year	15.3	-0.1	15.2
Closing balance on 31 Dec. 2012	953.8	-	953.8
Opening balance on 1 Jan. 2013	953.8	-	953.8
Dividend to parent company shareholders	-13.6	-	-13.6
Total comprehensive income for the year	98.5	-	98.5
Closing balance on 31 Dec. 2013	1,038.6	-	1,038.6

Segment reporting

Group operations are reported as one reportable segment, since this is how the Group is governed. The units in each country or sometimes groups of countries are identified as operating segments. The operating segments have then been merged to create a single reportable segment, consisting of the entire Group, since the units have similar economic characteristics and resemble each other regarding the nature of their products and services, production processes, customer types etc. The President has been identified as the highest executive decisionmaker. Regarding the financial information for the reportable segment please see the consolidated income statements and the statements of financial position along with related notes.

Financial assets and liabilities measured at fair value

The financial instruments recognized at fair value in the Group's report on financial position are derivatives identified as hedging instruments. The derivatives consist of forward exchange contracts and interest rate swaps and are used for hedging purposes. Valuation at fair value of forward exchange contracts is based on published forward rates on an active market. Valuation at fair value of interest rate swaps is based on forward interest rates derived from observable yield curves. All derivates are therefore included in level 2 in the fair value hierarchy. Since all the financial instruments recognized at fair value are included in level 2 there have been no transfers between valuation levels. The table below presents fair value respective booked value per class of financial assets and liabilities, which are recorded gross.

	December 31
MSEK	2013	2012
Other current assets – Derivative instruments in hedge accounting relationships Non-interest-bearing current liabilities – Derivative instruments in hedge accounting relationships	0.1 -2.8	- -4.2

The fair value of other financial assets and liabilities valued at their amortized purchase price is estimated to be equivalent to their book value

Note to the consolidated financial statements – Acquisition of operations in 2013

Specification of acquisitions

Company	Acquisition date	Country	Number of employees
McNaughtan's Printers Ltd	February 2013	Scotland	14
myphotobook GmbH	September 2013	Germany	70

Elanders acquired all the shares in the labeling company McNaughtan's Printers Limited (McNaughtan's) in Glasgow, Scotland in February. The company is specialized in the whiskey trade and several well known whiskey distilleries are customers. In the fiscal year 2011/2012 McNaughtan's had net sales of around MGBP 2. The purchase price was MGBP 2.8 and was financed with cash.

In September Elanders acquired myphotobook GmbH, one of Europe's leading e-commerce companies in personalized photo products to consumers. myphotobook was founded in 2004 and the company's net sales were about MEUR 15 in 2012. Its headquarters are in Berlin and the company has about 70 employees. The purchase price was MEUR 10.5 on a cash and debt free basis and was financed through loans.

Assets and liabilities in acquisitions

MSEK	Recorded values in acquired operations	Adjustments to fair value	Recorded value in the Group
Intangible assets	14.1	27.9	42.0
Tangible assets	3.2	-	3.2
Inventory	0.5	-	0.5
Accounts receivable	3.6	-	3.6
Other current assets	0.8	-	0.8
Cash and cash equivalents	17.7	-	17.7
Accounts payable	-5.4	-	-5.4
Other short-term liabilities	-11.4	-	-11.4
Non-interest bearing liabilities	-3.4	-7.9	-11.3
Identifiable net assets	19.7	19.9	39.6
Goodwill			80.9
Total purchase sums			120.5
Less:
Cash and cash equivalents in acquisitions			17.7
Total deductible items			17.7
Negative effect on cash and cash equivalents for the Group			102.7

PARENT COMPANY

Parent company – Income statements

	Full year
MSEK	2013	2012
Net sales	-	-
Cost of products and services sold	-	-
Gross profit	-	-
Operating expenses	-31.2	-29.4
Operating result	-31.2	-29.4
Net financial items	103.8	68.9
Result after net financial items	72.6	39.5
Income tax	-6.2	-22.2
Result for the year	66.4	17.3
	Fourth quarter
MSEK	2013	2012
Net sales	-	-
Cost of products and services sold	-	-
Gross profit	-	-
Operating expenses	-8.8	-9.8
Operating result	-8.8	-9.8
Net financial items	57.4	58.3
Result after net financial items	48.6	48.5
Income tax	-10.4	-27.5
Result for the period	38.2	21.0

Parent company - Statements of comprehensive income

	Full year
MSEK	2013	2012
Result for the year	66.4	17.3
Other comprehensive income	1.2	-2.6
Total comprehensive income for the year	67.6	14.7

	Fourth quarter
MSEK	2013	2012
Result for the period	38.2	21.0
Other comprehensive income	-0.1	-0.3
Total comprehensive income for the period	38.1	20.7

Parent company - Balance sheets

	December 31
MSEK	2013	2012
Assets
Fixed assets	1,444.6	1,442.1
Current assets	271.4	132.3
Total assets	1,716.0	1,574.4
Equity, provisions and liabilities
Equity	836.1	782.1
Provisions	2.9	6.4
Long-term liabilities	357.1	70.7
Current liabilities	519.8	715.2
Total equity and liabilities	1,716.0	1,574.4

Parent company - Statements of changes in equity

MSEK	Share capital	Statutory reserve	Retained earnings and result for the period	Total equity
Opening balance on 1 Jan. 2012	195.3	332.4	180.7	708.4
Dividend to shareholders	-	-	-9.8	-9.8
New share issue	32.0	-	36.8	68.8
Total comprehensive income for the year	-	-	14.7	14.7
Closing balance on 31 Dec. 2012	227.3	332.4	222.4	782.1
Opening balance on 1 Jan. 2013	227.3	332.4	222.4	782.1
Dividend to shareholders	-	-	-13.6	-13.6
Total comprehensive income for the year	-	-	67.6	67.6
Closing balance on 31 Dec. 2013	227.3	332.4	276.4	836.1

QUARTERLY DATA

MSEK	2013 Q4	2013 Q3	2013 Q2	2013 Q1	2012 Q4	2012 Q3	2012 Q2	2012 Q1	2011 Q4
Net sales	598	493	512	493	527	456	481	460	538
Operating result	54	26	28	23	48	13	39	20	57
Operating margin, %	9.0	5.3	5.6	4.6	9.0	2.8	8.0	4.2	10.6
Result after financial items	46	19	21	16	41	7	32	14	49
Result after tax	35	13	12	11	8	4	22	10	37
Earnings per share, SEK 1)	1.53	0.57	0.51	0.46	0.36	0.19	1.03	0.50	1.92
Operating cash flow	104	-58	34	-30	-21	18	42	27	76
Cash flow per share, SEK2)	4.36	0.68	1.80	-1.20	5.58	1.01	1.59	1.57	3.57
Depreciation	24	24	25	25	23	23	23	22	22
Net investments	13	92	26	34	161	16	5	14	2
Goodwill	1,090	1,073	1,011	984	977	872	890	828	834
Total assets	2,464	2,359	2,266	2,227	2,261	2,086	2,049	1,979	2,005
Equity	1,039	975	975	944	954	936	964	882	880
Equity per share, SEK	45.69	42.91	42.90	41.53	41.96	41.19	42.42	45.15	45.03
Net debt	739	824	754	745	688	627	642	660	676
Capital employed	1,777	1,800	1,729	1,689	1,642	1,563	1,606	1,542	1,555
Return on total assets, % 3)	9.1	4.5	5.1	4.1	9.0	2.5	10.2	4.8	14.0
Return on equity, % 3)	13.8	5.3	4.9	4.4	3.5	1.8	9.7	4.4	17.3
Return on capital employed, % 3)	12.1	5.9	6.7	5.4	11.9	3.2	9.8	5.0	14.5
Debt/equity ratio	0.7	0.8	0.8	0.8	0.7	0.7	0.7	0.7	0.8
Equity ratio, %	42.2	41.3	43.0	42.4	42.2	44.9	47.1	44.6	43.9
Interest coverage ratio 4)	5.3	5.3	5.0	5.7	5.6	5.8	5.4	4.5	4.4
Number of employees at the end of	1,898	1,905	1,882	1,843	1,780	1,600	1,599	1,551	1,582
the period

1) There is no dilution.

2) Cash flow per share refers to cash flow from operating activities.

3) Return ratios have been annualized.

4) Interest coverage ratio calculation is based on a moving 12 month period.

FIVE YEAR OVERVIEW – FULL YEAR

	2013	2012	2011	2010	2009
Net sales, MSEK	2,096	1,924	1,839	1,706	1,757
Result after financial items, MSEK	102	93	80	-105	-96
Result after tax, MSEK	70	45	60	-84	-74
Earnings per share, SEK 1)	3.08	2.05	3.09	-6.79	-7.57
Cash flow from operating activities per share, SEK	5.64	9.92	4.32	-4.68	5.60
Equity per share, SEK	45.69	41.96	45.03	41.94	78.34
Dividends per share, SEK	2) 0.80	0.60	0.50	0.00	0.00
Operating margin, %	6.2	6.2	6.0	-4.5	-3.4
Return on total assets, %	5.6	5.6	5.5	-3.2	-2.2
Return on equity, %	7.0	4.8	7.1	-10.6	-9.1
Return on capital employed, %	7.7	7.4	7.1	-4.8	-3.6
Debt/equity ratio	0.7	0.7	0.8	0.9	1.1
Equity ratio, %	42.2	42.2	43.9	40.7	36.2
Average number of shares, in thousands 3)	22,730	21,646	19,530	12,342	9,765

Key ratios correspond to those presented in the Annual Report for each year.

1) There is no dilution.

2) Propsed by the board

3) No adjustment of the historic number of shares has been made since the new share issues in 2010 and 2012 did not entail any bonus issue element.

FIVE YEAR OVERVIEW – FOURTH QUARTER

	2013 Q4	2012 Q4	2011 Q4	2010 Q4	2009 Q4
Net sales, MSEK	598	527	538	491	455
Result after tax, MSEK	35	8	37	-1	-37
Earnings per share, SEK 1)	1.53	0.36	1.92	-0.07	-3.79
Cash flow from operating activities per share, SEK	4.36	5.58	3.57	0.60	3.22
Equity per share, SEK	45.69	41.96	45.03	41.94	78.34
Return on equity, % 2)	9.1	3.5	17.3	-0.06	-19.3
Return on capital employed, % 2)	13.8	11.9	14.5	1.4	-7.0
Operating margin, %	9.0	9.0	10.6	1.1	-6.2
Average number of shares, in thousands 3)	22,730	22,730	19,530	19,530	9,765

1) There is no dilution.

2) Return ratios have been annualized.

3) No adjustment of the historic number of shares has been made since the new share issue in 2010 and 2012 did not entail any bonus issue element.

DEFINITIONS

Cash flow from operating activities per share	Cash flow from operating activities for the year divided by average number of shares.
Capital employed	Total assets less cash and cash equivalents and non-interest bearing liabilities.
Debt/equity ratio	Interest-bearing liabilities less cash and cash equivalents in relation to reported equity, including non-controlling interests.
Equity per share	Equity divided by outstanding shares at the end of the year.
Equity ratio	Equity, including non-controlling interests, in relation to total assets.
Interest coverage ratio	Operating result plus interest income divided by interest costs.
Operating cash flow	Cash flow from operating activities and investing activities adjusted for paid taxes and net financial items.
Operating margin	Operating result in relation to net turnover.
Return on capital employed	Operating result in relation to average capital employed.
Return on equity	Result for the year in relation to average equity.
Return on total assets	Operating result plus financial income in relation to total assets.