Bilia — Interim / Quarterly Report 2010

Jul 28, 2010

28 July 2010

Report for the first six months of 2010

First six months

• Net turnover amounted to SEK 7,900 M (6,609).
• Operating profit was SEK 212 M (23) and the operating margin was 2.7 per cent (0.4).
• Profit for the period was SEK 153 M (3) and earnings per share was SEK 6.25 (0.10).

Second quarter

• Net turnover amounted to SEK 4,158 M (3,569).
• Operating profit was SEK 129 M (39) and the operating margin was 3.1 per cent (1.1).
• Profit for the period was SEK 94 M (24) and earnings per share was SEK 3.85 (1.15).
• Cash flow after net investments amounted to SEK -26 M (215).

In a comment on the second quarter, Bilia's Managing Director Jan Pettersson says:

"We once again delivered strong results. Sales of both cars and service increased and the cost level was lower. The market situation improved in Denmark as well now, and the operation finally reported a profit. The acquisition of the BMW dealer in Stockholm will further strengthen Bilia's position from next year. External surveys show that customers are still satisfied with the service they get from Bilia. The trade associations' forecasts point towards a good market situation during the second half of the year as well."

		Second quarter		First six months	July 09 -	Full year
Group	2010 2009		2010	2009	June 10	2009
Net turnover, SEK M	4,158	3,569	7,900	6,609	14,991	13,700
Operating profit excl. items affecting comparability, SEK M 1)	129	46	212	38	380	206
Operating margin excl. items affecting comparability, %	3.1	1.3	2.7	0.6	2.5	1.5
Operating profit, SEK M	129	39	212	23	335	146
Operating margin, %	3.1	1.1	2.7	0.4	2.2	1.1
Profit before tax, excl. items affecting comparability, SEK M 1)	126	38	204	19	361	176
Profit before tax, SEK M	126	31	204	4	316	116
Profit for the period, SEK M	94	24	153	3	264	114
Earnings per share, SEK 2)	3.85	1.15	6.25	0.10	11.60	5.45

1) Items affecting comparability are shown on page 3.

2) The number of shares used in the calculation is shown in the table on page 10.

Notable events during 2010

• During the first half of the year up to and including the 30th of June, 484,633 warrants were exercised to subscribe for new shares, resulting in a new share issue of SEK 10 M. The number of outstanding warrants at 30 June was 681,048.
• Since 17 October 2008, HQ Bank AB has acted as the market maker for the company's share. Liquidity in the share has been strengthened, so there is no longer a need for a market maker. The agreement with HQ Bank AB expired on 1 July 2010.
• An agreement was concluded on 9 June for Bilia's acquisition of all the shares in the BMW dealer Bilcentralen i Stockholm AB, plus an option to acquire shares in M6 Fastighets AB, which owns the two properties in which the business is conducted. The date of possession is 3 January 2011 and the agreement is contingent upon the approval of the Swedish Competition Authority. The company's annual turnover is about SEK 600 M, and their average operating margin during the past three years was 4.1 per cent. The acquisition of Bilcentralen will increase the capital employed in the Bilia Group by about SEK 125 M.

Further information on the above events and other press information is available at www.bilia.com.

Second quarter 2010

Demand for new cars was at a higher level compared with the same period last year. Demand for service was somewhat higher compared with last year.

Net turnover amounted to SEK 4,158 M (3,569). For comparable operations and adjusted for exchange rate changes, net turnover increased by SEK 520 M or 15 per cent. The increase is mainly attributable to sales of new cars.

Operating profit amounted to SEK 129 M (39). Last year's profit included items affecting comparability of SEK -7 M. The improvement in earnings is mainly attributable to increased turnover and a higher gross profit margin in sales of new and used cars. Turnover and earnings increased in the Service Business as well. The underlying costs increased by about SEK 33 M or 5 per cent, but were 1.7 percentage points lower in relation to net turnover than last year. The profit was charged with employee bonuses of SEK 8 M (0).

Items affecting comparability (see table on page 3) amounted to a net of SEK -7 M last year and related to restructuring costs.

Net financial items amounted to SEK -3 M (-8). The improvement is mainly attributable to lower net debt. The figure includes a profit share of SEK 5 M (3) from the indirect shareholding in Volvofinans Bank AB.

Tax for the period amounted to SEK -32 M (-7).

Profit for the period was SEK 94 M (24) and earnings per share was SEK 3.85 (1.15). Exchange rate changes affected the profit marginally.

Total assets increased during the quarter by SEK 119 M to SEK 4,824 M. The increase is mainly attributable to higher trade receivables.

Equity increased by SEK 17 M, amounted to SEK 1,498 M. Dividends paid to shareholders during the quarter amounted to SEK 74 M. The equity/assets ratio was 31 per cent (27).

Investments and disposals amounted to a net of SEK 21 M (2). Replacement investments represented SEK 4 M (1), expansion investments SEK 6 M (1), environmental investments SEK 0 M (0) and investments in new construction and additions to properties SEK 6 M (0), while finance leases amounted to SEK 5 M (0).

Cash flow after net investments amounted to SEK -26 M (215). The increase in turnover during the quarter has resulted in an increase in tied-up working capital, which affected the cash flow by SEK -122 M (188). Net debt increased during the quarter by SEK 100 M to SEK 259 M.

Liquidity continued to be strong during the quarter. A debt of SEK 56 M to Nordea was reported at the end of June. The credit limit with Nordea amounts to SEK 500 M.

The number of employees increased during the quarter by 26, amounted to 3,261.

First six months 2010

Net turnover amounted to SEK 7,900 M (6,609). For comparable operations and adjusted for exchange rate changes, net turnover increased by SEK 1,082 M or 16 per cent. The increase is mainly attributable to sales of new cars.

Operating profit amounted to SEK 212 M (23). Last year's profit included items affecting comparability of SEK -15 M. The improvement in earnings is mainly attributable to increased turnover and a higher gross profit margin in sales of new and used cars. Turnover and earnings increased in the Service Business as well. The underlying costs increased by about SEK 37 M or 3 per cent, but were 2.4 percentage points lower in relation to net turnover than last year. The profit was charged with employee bonuses of SEK 11 M (0).

Items affecting comparability (see table below) amounted to a net of SEK -15 M last year, of which restructuring costs SEK -14 M and disputes SEK -1 M.

Net financial items amounted to SEK -8 M (-19). The improvement is mainly attributable to lower net

Breakdown of operating profit/loss

debt. The figure includes a profit share of SEK 10 M (10) from the indirect shareholding in Volvofinans Bank AB.

Tax for the period amounted to SEK -51 M (-1).

Profit for the period amounted to SEK 153 M (3) and earnings per share to SEK 6.25 (0.10). Exchange rate changes affected the profit marginally.

Investments and disposals amounted to a net of SEK 36 M (19). Replacement investments represented SEK 8 M (6), expansion investments SEK 10 M (5), environmental investments SEK 0 M (0) and investments in new construction and additions to properties SEK 9 M (2), while finance leases amounted to SEK 9 M (6).

Cash flow after net investments amounted to SEK 21 M (561). The increase in turnover during the period has resulted in an increase in tied-up working capital, which affected the cash flow by SEK -244 M (400). Net debt increased from the end of the year by SEK 45 M to SEK 259 M.

		Second quarter		First six months	July 09 -	Full year
SEK M	2010	2009	2010	2009	June 10	2009
Cars	139	56	234	57	429	252
Parent Company	-10	-9	-22	-20	-50	-48
Other, eliminations	0	-8	0	-14	-44	-58
Operating profit	129	39	212	23	335	146

Items affecting comparability

Group, SEK M	2010	Second quarter 2009	2010	First six months 2009	July 09 - June 10	Full year 2009
Operating profit excl. items affecting comparability Items affecting comparability	129	46	212	38	380	206
- Structural costs etc.	-	-7	-	-14	-21	-35
- Disputes	-	0	-	-1	-24	-25
Operating profit	129	39	212	23	335	146
Profit before tax excl. items affecting comparability Items affecting comparability	126	38	204	19	361	176
- Structural costs etc.	-	-7	-	-14	-21	-35
- Disputes	-	0	-	-1	-24	-25
Profit before tax	126	31	204	4	316	116

Cars

			Deliveries			Order backlog
No. of new		Second quarter		First six months	July 09 -	Full year		30 June
vehicles	2010	2009	2010	2009	June 10	2009	2010	2009
Sweden 1)	6,470	5,094	11,657	8,205	21,351	17,899	4,297	1,970
Norway	1,478	1,057	2,691	1,822	5,496	4,627	1,115	760
Denmark	1,165	880	1,900	1,449	3,554	3,103	762	472
Total	9,113	7,031	16,248	11,476	30,401	25,629	6,174	3,202

1) The BMW operation in Gothenburg is included in deliveries during the quarter in the amount of 504 (257) and during the first six months in the amount of 857 (257).

	Net turnover						Operating profit/loss, operating margin
	Second quarter			First six months	July 09 -	Full year	Second quarter				First six months	July 09 -	Full year
SEK M	2010	2009	2010	2009	June 10	2009	2010	% 2009			2010	2009	June 10	2009	%
Sweden	2,664	2,227	5,000	4,028	9,329	8,357	103	3.9	59	2.6	168	67	342	241	2.9
Norway	1,095	951	2,172	1,827	4,271	3,926	31	2.8	7	0.7	62	4	107	49	1.3
Denmark	399	391	730	750	1,391	1,411	5	1.3	-10	-2.6	4	-14	-20	-38	-2.7
Total	4,158	3,569	7,902	6,605	14,991	13,694	139	3.3	56	1.6	234	57	429	252	1.8

• Best result ever

• Profit in Denmark

The market for new cars increased during the quarter in Sweden by 34 per cent, in Norway by 41 per cent and in Denmark by 40 per cent.

Net turnover amounted to SEK 4,158 M, compared with last year's SEK 3,569 M. For comparable operations and adjusted for exchange rate changes, net turnover increased by about SEK 520 M or 15 per cent. The increase is mainly attributable to sales of new cars.

Operating profit for Cars, the best in the company's history, amounted to SEK 139 M (56) and the operating margin to 3.3 per cent (1.6). Earnings in the Vehicle Business improved by SEK 52 M to a profit of SEK 48 M. The improvement is mainly due to higher net turnover in new car sales and a higher gross profit margin in new and used car sales. The profit in the Service Business improved by SEK 31 M to SEK 91 M.

The operation in Sweden reported an operating profit of SEK 103 M (59). The improvement in earnings is mainly attributable to increased turnover and a slightly higher gross profit margin in sales of new and used cars. The Service Business developed well and reported better earnings compared with last year, mainly due to higher net turnover.

Operating profit in Bilia's Norwegian operation amounted to SEK 31 M (7). The improvement in earnings is mainly attributable to the Service Business, which reported higher net turnover and a slightly higher gross profit margin. Sales of new cars increased by all of 52 per cent, which contributed to the earnings improvement. Sales of used cars declined, and turnover and gross profit margin were at a lower level compared with the first quarter, as well as with last year.

The Danish operation reported an operating profit of SEK 5 M (loss: 10). The market situation improved during the quarter. Earnings in the Vehicle Business improved by all of SEK 14 M, mainly due to a higher gross profit margin in sales of new and used cars. Demand for service increased slightly compared to the first quarter this year and turnover and earnings were on a par with last year. Extensive measures have been adopted during the past two years for the purpose of reducing overheads and tied-up capital. Costs were 3.4 percentage points lower in relation to net turnover than last year.

				Net turnover 2)			Operating profit/loss
		Second quarter		First six months	July 09 -	Full year		Second quarter				First six months	July 09 -	Full year
SEK M	2010	2009	2010	2009	June 10	2009	2010	2009	2010	2009	June 10	2009
Service Business 1)	1,311	1,224	2,558	2,378	4,949	4,769	91	60	176	132	333	289
- margin, %							7.0	4.9	6.9	5.6	6.7	6.1
Vehicle Business 1)	3,012	2,469	5,680	4,491	10,668	9 479	48	-4	58	-75	96	-37
- margin, %							1.6	-0.2	1.0	-1.7	0.9	-0.4

Cars - divided into Service and Vehicle businesses

1) Service includes workshop services, spare parts, accessories and fuel in the car operation. The Vehicle Business includes sales of new and used vehicles and customer financing. 2) Net turnover does not include eliminations for internal sales.

• Increased new car sales

• Increased service sales

The Service Business's sales for comparable operations and adjusted for exchange rate changes increased by about 7 per cent. Sweden increased by 8 per cent and Norway by 7 per cent, while Denmark decreased by 1 per cent. Operating profit increased by SEK 31 M to SEK 91 M, and the operating margin increased by 2.1 percentage points to 7.0 per cent.

The Vehicle Business's deliveries of new cars increased during the quarter by 27 per cent for comparable operations. The order backlog was slightly higher than deliveries, resulting in an increase in the order backlog by 168 vehicles during the quarter. Vehicle turnover increased by 19 per cent for comparable operations and adjusted for exchange rate changes. The operating result increased by SEK 52 M to a profit of SEK 48 M. The used car business once again reported a profit, and the gross profit margin was strengthened slightly compared with last year and was on a par with the first quarter of the year.

Stocks of new and used cars are at low levels, even though they increased slightly during the quarter. The turnover rate for used cars remains at a high level and amounted to 11 times per year at the end of the quarter.

Acquisition of operation 2009

BMW's dealership in the Gothenburg area

BMW's dealership in the Gothenburg area was acquired as of 15 May 2009 for SEK 113 M, of which SEK 60 M was paid in cash on the date of possession and the remainder was paid in December 2009. During the seven months following the acquisition, the

subsidiary contributed SEK 20 M to the consolidated operating profit for 2009. The underlying operating profit for 2009, excluding consolidation eliminations and adaptations to Bilia's accounting principles, amounted to about SEK 22 M.

Effects of the acquisition

The acquisition has the following effects on the Group's assets and liabilities.

The acquired operation's net assets at the date of acquisition:

SEK M	Carrying amounts in BMW's dealership operation	Fair value adjustment	Fair value recognised in Group
Intangible assets	-	14	14
Property, plant and equipment	70	23	93
Long-term investments	-	0	0
Inventories	104	1	105
Trade receivables and other receivables	1	-	1
Trade payables and other liabilities	76	24	100
Net identifiable assets and liabilities	99	14	113
Consolidated goodwill			-
Purchase consideration			113
Seller note			53
Net effect on cash and cash equivalents			60

Acquired customer relations totalling SEK 14 M are recognised as intangible assets.

These customer relations will be amortised over 10 years.

Parent Company

Bilia AB is responsible for the Group's management, strategic planning, financing, accounting, public relations and business development. Furthermore, Bilia AB conducts training and IT activities, mainly for companies in the Group.

The Parent Company's operating loss for the second quarter amounted to SEK 10 M (loss: 9).

Risks and uncertainties

As a result of its operations, the Bilia Group is exposed to both operating risks and financial risks.

The operating risks include:

• Development of the market for new cars.
• Diminished demand for cars can also affect the value of stock in hand and guaranteed residual values.
• Increased competition in the markets where Bilia is active.
• The ability of suppliers to offer competitive products.
• Regulatory decisions that lead to changes in taxes and charges on the products Bilia sells can influence both demand for and the valuation of cars in stock and cars sold with guaranteed residual values.

The financial risks include liquidity risks, interest rate risks, credit risks and currency risks.

Bilia works continuously with risk identification and risk assessment. For further information about the risks that affect the Group, please refer to the 2009 Annual Report.

Accounting principles

Group

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. A number of amendments and interpretations of standards have entered into force for financial year 2010. These amendments have not had any effect on the Bilia Group's financial reports.

The same accounting principles and calculation methods have thereby been applied as in the most recent annual report.

One of the changes for financial year 2010 is IFRS 3 Business Combinations, which may have an effect on possible new future acquisitions.

Parent Company

The same accounting principles and calculation methods are applied as in the most recent annual report. The Parent Company complies with the Swedish Annual Reports Act and the Swedish Financial Reporting Board's recommendation RFR 2.3 Accounting for Legal Entities. The application of RFR 2.3 means that, in the interim report for the legal entity, the Parent Company applies all IFRSs and statements approved by the EU whenever this is possible within the framework of the Annual Reports Act and the Act on Safeguarding of Pension Obligations, while taking account of the relationship between accounting and taxation.

Audit

This interim report has not been subjected to special examination by the auditors.

Next report

The interim report for the third quarter of 2010 will be published on 29 October 2010.

This half-year report provides a true and fair summary of the Group's and the Parent Company's activities, financial position and results of operations while describing significant risks and uncertainties faced by the Parent Company and the companies included in the Group.

Gothenburg, 28 July 2010

Mats Qviberg Chairman

Heinrich Blauert Eva Cederbalk Jack Forsgren

Board member Board member Board member

by employee organisation and Board member

Tommy Strandhäll Jan Pettersson Board member appointed Managing Director, CEO

Anna Qviberg Mats Holgerson Ingrid Jonasson Blank Board member Board member Board member

Jon Risfelt Svante Paulsson Patrik Nordvall Board member Board member Board member appointed by employee organisation

For further information, please contact Jan Pettersson, Managing Director and CEO, or Gunnar Blomkvist, CFO, telephone +46 31 709 55 00.

Bilia AB (publ) Box 9003, SE-400 91 Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: +46 31 709 55 00 www.bilia.com Corporate ID No.: 556112-5690

This report is being published by Bilia AB in compliance with the Securities Market Act. The information was submitted for publication on 28 July 2010 at 08:30 a.m.

Group's operating segments

First six months

	Se rvic e			Ve hic les				Tot al		Re cilia tion con		Seg	nt me
	Sw	ede n	No	rwa y	De nm	ark	Sw	ede n	No	rwa y	De nm	ark	Ca	rs	Par ent	Co mp any	rec onc	iliat ion	Gro	up
SE K M	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9	201 0	200 9
Ne t tu rno ver
Ext al s ale ern s	1, 630	1,5 08	399	385	193	221	3, 370	2,5 20	1,7 73	1,4 42	537	529	7, 902	6,6 05	1	8	-3	-4	7, 900	6,6 09
Inte l sa les rna	169	106	125	103	42	55							336	264	53	42	-38 9	-30 6	-	-
To tal net tu rno ver	1,7 99	1,6 14	524	488	235	276	3, 370	2,5 20	1,7 73	1,4 42	537	529	8, 238	6,8 69	54	50	-39 2	-31 0	7, 900	6,6 09
/am De cia tion orti sat ion pre	24	22	5	6	4	6	103	89	15	20	2	2	153	145	5	5	0	0	158	150
Op ting fit/l era oss	121	96	44	20	11	16	47	-29	18	-16	-7	-30	234	57	-22	-20	0	-14	212	23
pro Inte t in res com e																			46	171
Inte t ex
res pen ses																			64	200
Sha in fits of oci d c ies ate res pro ass om pan							10	10					10	10					10	10
Pro fit/l be fore tax oss																			204	4
Tax for the riod ex pen se pe																			-51	-1
Pro fit/ los s fo r th eri od e p																			153	3
Ma ter ial item f in nd s o com e a exp ens e
f a rrin ise d atu o no n-r ecu g n re rec ogn
in e S th e In tate nt: com me
Item ffec ting bili ty s a co mp ara
-St l co tura sts etc ruc		-9						-5						-14						-14
-Di tes																		-1		-1
spu Item f n ing tur s o on- rec urr na e	-	-9	-	-	-	-	-	-5	-	-	-	-	-	-14	-	-	-	-1	-	-15
Ma ter ial item ot aff ect ing sh s n ca
b esi des de cia /am isa tion ton ort pre :
-Ot her	-2	-2	0	-2	-1		-2		-1	5	-7		-13	1	-1				-14	1
To tal	-2	-2	0	-2	-1	-	-2	-	-1	5	-7	-	-13	1	-1	-	-	-	-14	1
As set s
Inte ts i cia ted ani res n a sso co es							289	264					289	264					289	264
mp Def ed tax set err as s																			85	64
Oth ts er a sse																			450 4,	4,3 22
To tal ets							289	264					289	264					824	50
ass																			4,	4,6
Inv est nts in nt a ts me non -cu rre sse	15	13	3	7	1	0	188	119	-12 5	-18 0	-12	-25	70	-66	6	4	1	-2	77	-64
Lia bili ties
Equ ity																			1, 498	1,2 36
Lia bilit ies																			3, 326	3,4 14
To tal liab iliti and uity es eq																			4, 824	4,6 50

	Rev enu	e fr om	No nt n-c urre
	al c ext ust ern om ers		ass	ets
SE K M	201 0	200 9	201 0	200 9
Ge hic al s ent og rap egm s
Sw ede n	5, 001	4,0 36	2, 660	2,6 05
No rwa y	2, 172	1,8 27	274	666
De ark nm	730	750	117	114
Seg nt r nci liat ion me eco	-3	-4	-81 8	-87 1
To tal	7, 900	6,6 09	2, 233 2,5 14

Consolidated Statement of Comprehensive Income

		Second quarter		First six months	July 09 -	Full year
SEK M	2010	2009	2010	2009	June 10	2009
Net turnover	4,158	3,569	7,900	6,609	14,991	13,700
Cost of goods sold	3,443	2,970	6,547	5,477	12,445	11,375
Gross profit	715	599	1,353	1,132	2,546	2,325
Other operating income	1	3	2	4	28	30
Selling expenses	480	455	932	890	1,767	1,725
Administrative expenses	107	98	209	205	397	393
Other operating expenses	0	10	2	18	75	91
Operating profit 1)	129	39	212	23	335	146
Financial income	23	50	46	171	123	248
Financial expenses	31	61	64	200	160	296
Shares in profits of associated companies	5	3	10	10	18	18
Net financial items	-3	-8	-8	-19	-19	-30
Profit before tax	126	31	204	4	316	116
Tax	-32	-7	-51	-1	-52	-2
Profit for the period	94	24	153	3	264	114
Other comprehensive income/loss
Translation differences for the period on translation of foreign financial statements	-5	-4	-16	4	-15	5
Comprehensive income for the period	89	20	137	7	249	119
Profit for the period attributable to:
Parent Company's shareholders	94	24	153	3	264	114
Comprehensive income for the period attributable to:
Parent Company's shareholders	89	20	137	7	249	119
Number of shares at end of period, '000:
– before dilution	24,778	20,492	24,778	20,492	24,778	24,294
– after dilution	25,459	25,459	25,459	25,459	25,459	25,459
Basic earnings per share, SEK	3.75	1.15	6.15	0.10	10.75	4.70
Diluted earnings per share, SEK	3.70	1.00	6.05	0.20	10.55	4.70
Number of own shares at end of period, '000	1,000	1,000	1,000	1,000	1,000	1,000
Weighted average number of shares, '000:
– before dilution	24,756	20,467	24,533	20,463	22,930	20,911
– after dilution	25,459	25,459	25,459	25,128	25,459	25,295
Basic earnings per share, SEK	3.85	1.15	6.25	0.10	11.60	5.45
Diluted earnings per share, SEK	3.70	1.00	6.05	0.20	10.55	4.70
Weighted average number of own shares, '000	1,000	1,000	1,000	1,000	1,000	1,000
1) Straight-line amortisation/depreciation by asset class
- Intellectual property	7	7	14	13	28	27
- Land and buildings - Equipment, tools, fixtures and fittings	2 21	2 22	4 42	4 46	11 83	11 87
- Leased vehicles	50	43	98	87	188	177
Total	80	74	158	150	310	302

Consolidated Statement of Financial Position, Summary

SEK M	30/06 2010	31/12 2009	30/06 2009
Assets
Non-current assets
Intangible assets
Intellectual property	105	114	123
Goodwill	91	92	91
	196	206	214
Property, plant and equipment
Land and buildings	173	177	176
Construction in progress	4	0	2
Equipment, tools, fixtures and fittings	316	341	365
Leased vehicles 1)	1,179	1,246	1,403
	1,672	1,764	1,946
Long-term investments
Financial investments Non-current receivables 2)	295 70	278 77	273 81
Deferred tax assets	85	87	64
	450	442	418
Total non-current assets	2,318	2,412	2,578
Current assets
Inventories, merchandise	1,479	1,346	1,210
Current receivables
Interest-bearing receivables 2)	52	14	25
Other receivables	941	826	793
Cash and cash equivalents 2)	34	119	44
Total current assets	2,506	2,305	2,072
Total assets	4,824	4,717	4,650
Equity and liabilities
Equity
Share capital	258	253	215
Reserves	-11	5	3
Other contributed capital	43	39	0
Retained earnings including net profit for the year	1,208	1,128	1,018
Total equity	1,498	1,425	1,236
Non-current liabilities
Debenture loan 3)	100	100	100
Interest-bearing liabilities 3)	91	107	120
Other liabilities and provisions 4)	954	882	1,150
	1,145	1,089	1,370
Current liabilities
Interest-bearing liabilities 3)	132	141	184
Other liabilities and provisions	2,049	2,062	1,860
	2,181	2,203	2,044
Total equity and liabilities	4,824	4,717	4,650
Assets 1)
Of which interest-bearing	262	262	227
2) Interest-bearing	156	210	150
Liabilities 3) Interest-bearing	323	348	404
4) Of which interest-bearing	354	338	313

Statement of Changes in Group Equity, Summary

SEK M	30/06 2010	31/12 2009	30/06 2009
Opening balance	1,425	1,229	1,229
Cash dividend to shareholders	-74	-	-
Exercised warrants	10	77	0
Comprehensive income for the period	137	119	7
Closing balance	1,498	1,425	1,236

Consolidated Statement of Cash Flows

		Second quarter		First six months	July 09 -	Full year
SEK M	2010	2009	2010	2009	June 10	2009
Operating activities
Profit before tax	126	31	204	4	316	116
Depreciation, amortisation and impairment losses	80	74	158	150	310	302
Other items not affecting cash	14	-20	22	-3	24	-1
Tax paid	-11	-4	-38	-6	-28	4
Change in inventories	-25	330	-168	675	-292	551
Change in operating receivables	-123	-77	-107	131	-159	79
Change in operating liabilities	26	-65	31	-406	-92	-529
Cash flow from operating activities	87	269	102	545	79	522
Investing activities
Acquisitions and disposals of non-current assets	-21	-2	-36	-19	-62	-45
Acquisitions and disposals of leased vehicles	-85	-3	-41	83	24	148
Acquisitions and disposals of financial assets	-7	11	-4	12	4	20
Acquisition of subsidiary/operation, net	-	-60	-	-60	-	-60
Cash flow from investing activities	-113	-54	-81	16	-34	63
Remaining after net investments	-26	215	21	561	45	585
Financing activities
Change in bank loans and other loans	44	-216	-4	-613	-38	-647
Exercised warrants	2	0	10	0	87	77
Dividend paid to Parent Company's shareholders	-74	-	-74	-	-74	-
Cash flow from financing activities	-28	-216	-68	-613	-25	-570
Change in cash and cash equivalents, excl.
translation differences	-54	-1	-47	-52	20	15
Exchange difference in cash and cash equivalents	0	0	0	1	0	1
Change in cash and cash equivalents	-54	-1	-47	-51	20	16
Cash and cash equivalents at start of period	137	64	130	114	63	114
Cash and cash equivalents at end of period	83	63	83	63	83	130

Quarterly review

Q u a r t e r

Group	3/08	4/08	1/09	2/09		3/09	4/09		1/10		2/10
Net turnover, SEK M Operating profit/loss, excluding	3,132	3,335	3,040	3,569		3,253	3,838		3,742		4,158
items affecting comparability, SEK M	-28	9	-8	46		66	102		83		129
Operating margin, excluding items affecting comparability, %	-0.9	0.3	-0.3	1.3		2.0	2.7		2.2		3.1
Operating profit/loss, SEK M	4	-117	-16	39		38	85		83		129
Operating margin, %	0.1	-3.5	-0.5	1.1		1.2	2.2		2.2		3.1
Profit/loss before tax, SEK M	-15	-146	-27	31		33	79		78		126
Profit/loss from continuing operations, SEK M Profit/loss from discontinued operation,	5	-152	-21	24		27	84		59		94
net after tax, SEK M	-2	-	-	-		-		-	-		-
Profit/loss for the period, SEK M	3	-152	-21	24		27	84		59		94
Rate of capital turnover, times 1)	2.33	2.25	2.29	2.36		2.60	2.85		3.09		3.21
Return on capital employed, % 1)	5.0	-0.6	-0.7	-2.0		-0.9	8.2		13.1		17.6
Return on equity, % 1)	4.2	-8.0	-8.6	-11.3		-9.6	8.6		14.6		19.1
Net debt/equity, times	0.69	0.67	0.44	0.27		0.21	0.15		0.11		0.17
Equity/assets ratio, %	23	23	25	27		29	30		31		31
Interest coverage ratio, times 1)	1.4	-0.1	-0.2	-0.5		-0.2	3.0		5.7		8.0
Data per share (SEK) 2)
Profit/loss for the period	0.15	-7.40	-1.05	1.15	3)	1.35	5) 4.00		7) 2.40	9)	3.85	11)
Equity	68	60	59	60	4)	60	6) 59		8) 60	10)	60	12)

1) Rolling 12 months.

2) Based on number of shares outstanding, 20,459,255.

3) Based on weighted average number of shares outstanding during second quarter, 20,466,538.

4) Based on number of shares outstanding at 30 June 2009, 20,492,053.

5) Based on weighted average number of shares outstanding during third quarter, 20,825,484.

6) Based on number of shares outstanding at 30 September 2009, 21,213,872.

7) Based on weighted average number of shares outstanding during fourth quarter, 21,879,291.

8) Based on number of shares outstanding at 31 December 2009, 24,293,574.

9) Based on weighted average number of shares outstanding during first quarter, 24,308,938.

10) Based on number of shares outstanding at 31 March 2010, 24,711,042.

11) Based on weighted average number of shares outstanding during second quarter, 24,755,541.

12) Based on number of shares outstanding at 30 June 2010, 24,778,207.

Income Statement for Parent Company

	Second quarter		First six months		July 09 -	Full year
SEK M	2010	2009	2010	2009	June 10	2009
Net turnover	28	26	54	50	103	99
Administrative expenses	38	35	76	70	153	147
Operating loss 1)	-10	-9	-22	-20	-50	-48
Income from financial items
Income from interests in Group companies	-	-	0	-	155	155
Interest income from Group companies	6	7	12	20	22	30
Other interest income and similar line items	21	48	44	168	120	244
Interest expenses to Group companies	0	1	0	3	0	3
Interest expenses and similar line items	25	54	52	184	134	266
Profit/loss after financial items	-8	-9	-18	-19	113	112
Appropriations	-	-	-	-	-22	-22
Profit/loss before tax	-8	-9	-18	-19	91	90
Tax	0	1	1	-4	-30	-35
Profit/loss for the period	-8	-8	-17	-23	61	55
1) Straight-line amortisation/depreciation by asset class
- Intellectual property	2	2	4	4	8	8
- Equipment, tools, fixtures and fittings	1	1	1	1	1	1
Total	3	3	5	5	9	9

Statement of Comprehensive Income for Parent Company

SEK M	2010	Second quarter 2009	First six months 2010 2009		July 09 - June 10	Full year 2009
Profit/loss for the period	-8	-8	-17	-23	61	55
Other comprehensive income
Group contributions and shareholders' contributions paid	-	-	-	-	-72	-72
Tax attributable to components in other comprehensive income	-	-	-	-	15	15
Other comprehensive income/loss for the period	-	-	-	-	-57	-57
Comprehensive income/loss for the period	-8	-8	-17	-23	4	-2

Balance Sheet for Parent Company, Summary

SEK M	30/06 2010	31/12 2009	30/06 2009
Assets
Non-current assets
Intangible assets
Intellectual property	26	24	24
	26	24	24
Property, plant and equipment
Equipment, tools, fixtures and fittings	2	3	3
	2	3	3
Long-term investments
Interests in Group companies	818	818	871
Other securities held as non-current assets	0	0	0
Other long-term receivables	41	41	45
Deferred tax asset	17	16	10
	876	875	926
Total non-current assets	904	902	953
Current assets
Current receivables
Receivables from Group companies	9	572	508
Other receivables	18	7	19
Cash and bank balances	301	86	1
Total current assets	328	665	528
Total assets	1,232	1,567	1,481
Equity and liabilities
Equity
Restricted equity
Share capital	258	253	215
Statutory reserve	47	47	47
Non-restricted equity	305	300	262
Share premium reserve	43	39	0
Retained earnings including net profit for the year	588	679	659
	631	718	659
Total equity	936	1,018	921
Untaxed reserves	82	82	60
Provisions
Provisions for pensions and similar obligations	12	12	11
	12	12	11
Non-current liabilities
Debenture loan	100	100	100
Other liabilities	5	5	5
	105	105	105
Current liabilities
Liabilities to credit institutes	50	50	338
Liabilities to Group companies	0	234	0
Other liabilities	47	66	46
	97	350	384
Total equity and liabilities	1,232	1,567	1,481
Pledged assets and cont. liabilities for Parent Company
Pledged assets	750	750	1,596
Contingent liabilities	1,037	1,062	856