Bulten — Interim / Quarterly Report 2014

Apr 29, 2014

interim report January–March 2014

Strong organic growth and substantially improved earnings. Restructuring of the foundry operation completed

FIRST QUARTER

• • Net sales reached SEK 906 million (708), up 28.1% on the same period last year.
• • Earnings (EBIT) adjusted for non-recurring items were SEK 46 million (19), which corresponds to an adjusted operating margin of 5.1% (2.7).
• • Earnings (EBIT) reached SEK 63 million (19), which corresponds to an operating margin of 7.0% (2.7).
• • Profit after tax was SEK 44 million (6) and SEK 30 million (6) when adjusted for non-recurring items related to restructuring of the foundry business.
• • Order bookings amounted to SEK 963 million (820), up 17.5% on the same period last year.
• • Cash flow from current activities was SEK -30 million (51), mainly attributable to the major expansion of division Bulten.
• • Earnings per share was SEK 2.10 (0.28). Adjusted for non-recurring items, earnings per share was SEK 1.46 (0.28).
• • The Swedish aluminium business within the Finnveden Metal Structures division has been sold.

"Our positive sales trend, order bookings and earnings continued at the start of the year. During the quarter we focused on the start up of the new, major FSP contracts in the Bulten division. The division has extensive experience of starting and running FSP contracts and the phasing in of the first contract has gone well and according to plan. Another significant contract will start in Q2 and full volumes for both contracts are expected in 2015. Start up costs related to the new business amounted to approximately SEK 7 million during the quarter. We have finalized the restructuring of the casting business in the Finnveden Metal Structures division. All magnesium casting has been consolidated to Poland and the aluminium foundry business has now been divested, which also provided positive results over the quarter. The profitability of Finnveden Metal Structures has been strengthened thanks to increased volumes and rationalization measures carried out.

The work with evaluating a split of the Group in 2014 has been intensified. The Board and the management team are favourable to dividing the business and expect this to improve the divisions' future opportunities and provide shareholders with added value over time."

Johan Westman, President and CEO

Group summary

Market

Of the Group's total net sales, around 82% is attributable to vehicle producers (OEMs) and around 18% to their sub-suppliers and to other sectors. Deliveries for light vehicles (cars and light commercial vehicles) currently account for 79% of Finnveden-Bulten's income while heavy commercial vehicles account for 21%.

In Q1, FinnvedenBulten noted continued improvement in demand. In the segment for heavy commercial vehicles, the new EURO VI emissions directive, which came into effect on 1 January 2014, had a pre-buy effect that impacted positively on sales in Q4 2013. This was to some extent balanced out in Q1 2014 by a negative effect which is also expected to affect the second quarter in a similar way.

According to the LMC Automotives forecast from Q1 2014, annual production of light vehicles in Europe is expected to have risen by 1.5% and annual production of heavy vehicles to have risen by 0.9% in 2014 compared with 2013. Weighted for FinnvedenBulten's exposure, this means an increase of around 1.4%.

Outlook for 2014

The Bulten division has grown strongly and has a clear focus on organic growth in Europe, Russia and China. The conditions for continued organic growth on the global auto market are contined good. Through structural measures within Finnveden Metal Structures, the division has cut its operating costs and strengthened its competitiveness, which has also created improved possibilities for organic growth and acquisitions in the future.

To establish further business focus and clarify the value in each division a split of the Group in 2014 is being evaluated. This evaluation has been intensified over the quarter and the Board and management believe that dividing the Group is positive. A split of the Group is expected to improve the divisions' future prospects and provide shareholders with added value over the long term.

Order bookings and net sales

Order bookings were SEK 963.0 million (819.9), an increase of 17.5% compared with the corresponding period last year. The increase is attributable to new contracts from the Bulten division.

Net sales for the Group totalled SEK 906.0 million (707.5), an increase of 28.1% compared with the corresponding period last year. Adjusted for currency effects, organic growth was 24.6% compared with the corresponding period last year.

Earnings and profitability

The Group's gross profit was SEK 149.3 million (104.7), corresponding to a gross margin of 16.5% (14.8). Earnings before depreciation (EBITDA) were SEK 82.9 million (38.5), corresponding to an EBITDA margin of 9.2% (5.4). Adjusted for non-recurring items, earnings before depreciation were SEK 65.5 million (38.5), corresponding to an adjusted EBITDA margin of 7.2% (5.4).

Earnings (EBIT) were SEK 63.5 million (19.3), corresponding to an operating margin of 7.0% (2.7). Adjusted for non-recurring items, EBIT was SEK 46.1 million (19.3), corresponding to an adjusted operating margin of 5.1% (2.7). Non-recurring items of SEK 17.4 million relating to the restructuring programme to refine the foundry business affected the operating earnings over the quarter. During the quarter, we had start up costs related to the new business of approximately SEK 7 million.

Net financial items in the Group were SEK -4.9 million (-10.6). Financial income was SEK 0.2 million (-). Financial costs were SEK -5.1 million (-10.6), mainly comprising interest costs of SEK -3.8 million (-3.6) and other financial costs of SEK -1.3 million (-0.3) and last year also included currency losses of SEK -6.7 million.

The Group's profit before tax was SEK 58.6 million (8.7) and the profit after tax was SEK 43.9 million (5.9).

Cash flow, working capital, investments and financial position

Cash flow from operating activities totalled SEK -30.4 million (51.5). Cash flow effects of changes in working capital amounted to SEK -77.5 million (24.6). Inventories increased over the period by SEK 6.0 million (-21.8), while operating receivables increased by SEK 77.1 million (41.8). Cash flow has been negatively affected due

to net working capital increase attributable to the major expansion of division Bulten.

Cash flow from investing activities were SEK 45.5 million (29.7). Investments of SEK 44.2 million (28.2) related to machinery and equipment, whereof SEK 17.2 million are related to the Russian operation. The corresponding sum for intangible fixed assets was SEK 1.3 million (1.5). Sale of fixed assets amounted to SEK 15.3 million (2.0) of which SEK 15.0 million relate to the divestment of the aluminium business.

At the end of the period, the net debt amounted to SEK 250.2 million (231.0) of which cash and cash equivalents amounted to SEK 131.7 million (68.9).

FINANCIAL SUMMARY (SEK m)	Jan - March			12-month rolling	Full year
	2014	2013		April 2013 - March 2014	2013
Net sales	906.0	707.5	28.1%	3,252.5	3 054.0	6.5%
Gross profit	149.3	104.7	44.6	530.8	486.2	44.6
Earnings before depreciation (EBITDA)	82.9	38.5	44.4	239.1	194.7	44.4
Adjusted earnings before depreciation (EBITDA)	65.5	38.5	27.0	245.5	218.5	27.0
Operating earnings (EBIT)	63.5	19.3	44.2	150.0	105.8	44.2
Operating margin, %	7.0	2.7	4.3	4.6	3.5	1.1
Adjusted operating earnings (EBIT)	46.1	19.3	26.8	171.4	144.6	26.8
Adjusted operating margin, %	5.1	2.7	2.4	5.3	4.7	0.6
Earnings after tax	43.9	5.9	38.0	126.2	88.2	38.0
Adjusted earnings after tax	30.3	5.9	24.4	115.8	91.4	24.4
Order bookings	963.0	819.9	17.5%	3,426.0	3,282.9	4.4%
Return on capital employed, %	–	–	–	10.6	7.8	2.8
Adjusted return on capital employed, %	–	–	–	12.0	10.6	1.4

Bulten is one of the leading suppliers of fasteners to the European automotive industry. The company's product range includes everything from customer-specific standard products to specialist, customized fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof.

Bulten develops and processes products aimed at minimizing workload during component assembly, thereby cutting overall costs for customers. The picture shows an example of these types of products.

• • Net sales in Q1 rose by SEK 163 million, up 38.9% on the same period last year.
• • Operating earnings in Q1 amounted to SEK 34 million (20).
• • In Q1 Bulten started deliveries for a new, major FSP contract and another is expected to start deliveries in Q2.

The Bulten division is continuing its increased sales trend, improved profitability and strong order bookings. The division continues to gain market shares, mainly within the framework of its Full Service Provider concept.

Bulten is expected to achieve considerable organic growth from new business (anually worth of approximately SEK 500 million at full pace) signed in 2013 and from the planned production start in Russia.

The division has had a major focus on the start of the new and significant FSP contracts during the quarter. The division has extensive experience of starting and running FSP contracts and the phasing in of the first contract has gone well and according to plan. Another significant contract will start in Q2 and full volumes for both contracts are expected in 2015.

Margin improvements are expected when the new contracts are fully implemented and an optimization of the deals has been carried out.

The previous estimate concerning start up costs for these contracts of around SEK 15 million for Q1 2014 remain unchanged, of which around SEK 7 million affected results in Q1. The increased volumes will also mean a need to further invest in machinery and equipment by around SEK 25 million, and operating capital tied up of around 20% of the increased annual earnings. The build up of working capital took place in Q1 to a large extent.

Preparations for production start in Russia are ongoing with planned additions to machinery. Interest among potential new customers, both domestic and international, remains strong. Bulten's business activity in Russia is a joint venture company with the Russian company GAZ. The company will initially mainly supply the Russian automotive industry. The political situation in the country has not altered the plan to establish and start up with deliveries in Q3 2014.

First quarter

Order bookings amounted to SEK 632.0 million (485.6), up 30.1% compared with the same period last year.

Net sales reached SEK 581.5 million (418.6), up 38.9% compared with the same period last year and up 33.8% when adjusted for currency effects. The significant increase in order bookings over the quarter was converted to deliveries in Q1.

Earnings before depreciation (EBITDA) reached SEK 45.0 million (31.2), corresponding to an EBITDA margin of 7.7% (7.5).

Operating earnings (EBIT) were SEK 34.0 million (20.1), corresponding to an operating margin of 5.8% (4.8).

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SEK ${\bf 581}$ MILLION

NET SALES EBIT OPERATING MARGIN

FINANCIAL SUMMARY (SEK m)		Jan - March			Full year
	2014	2013		April 2013 - March 2014	2013
Net sales	581.5	418.6	38.9%	1,967.3	1,804.4	9.0%
Earnings before depreciation (EBITDA)	45.0	31.2	13.8	169.6	155.8	13.8
Operating earnings (EBIT)	34.0	20.1	13.9	126.2	112.9	13.3
Operating margin, %	5.8	4.8	1.0	6.4	6.3	0.1
Order bookings	632.0	485.6	30.1%	2,157.9	2,011.5	7.3%

Finnveden Metal Structures mass-produces steel and magnesium components or a combination of both. The main manufacturing processes include stamping, die casting and joining. The components are included in interiors, chassis and bodywork parts in the automotive industry, but also in customerspecific components in general industry.

Division FINNVEDEN METAL STRUCTURES

• Net sales in Q1 rose by SEK 36 million, up 12.4% on the same period last year.

• • Operating earnings in Q1 were SEK 31 million (-1), or SEK 14 million (-1) when adjusted for non-recurring items.
• • Completed restructuring of the foundry business has strengthened generated earnings.
• • The sale of the Swedish aluminium business was completed with a positive effect on operating earnings.

Net sales for Finnveden Metal Structures divison improved by 12.4% compared with the same period last year. Results also improved in Q1 as a result of increased volumes, restructuring and rationalization measures. In addition, the sale of the division's aluminium business had a positive impact.

All magnesium casting is now consolidated to the division's foundry in Poland. The aluminium business was sold as planned during the quarter and will, as from Q2 and onwards, no longer be included in the Group's accounts.

The division's reported operating earnings for Q1 amounted to SEK 30.9 million (-0.5). Adjusted for non-recurring items related to the restructuring of the foundry business the operating earnings amounted to SEK 13.5 million. The divested aluminium business contributed with net SEK 14.7 million during the quarter. Excluding the net contribution the operating earnings for the remaining business amounted to SEK 16.2 million.

Through structural measures within Finnveden Metal Structures, the division has strengthened its competitiveness and position in Europe and improved future possibilities for organic growth and acquisitions.

First quarter

Order bookings amounted to SEK 331.8 million (336.1), down 1.3% compared with the same period last year. Order bookings are negatively affected by the phase out of the aluminium business.

Net sales reached SEK 326.4 million (290.4), up 12.4% on the same period last year, and up 11.3% when adjusted for currency effects.

Earnings before depreciation (EBITDA) reached SEK 39.3 million (7.5), correspondCabriolet frame. Cast lightweight magnesium. Helps make a light, safe and quiet roofing solution for cars in the premium segment.

ing to an EBITDA margin of 12.0% (2.6). Adjusted for non-recurring items, earnings before depreciation amounted to SEK 21.9 million (7.5), corresponding to an adjusted EBITDA margin of 6.7 % (2.6).

Operating earnings (EBIT) were SEK 30.9 million (-0.5), corresponding to an operating margin of 9.5% (-0.2). Adjusted for non-recurring items, EBIT was SEK 13.5 million (-0.5), corresponding to an adjusted operating margin of 4.1% (-0.2).

326 Sek milli on	14 Adjuste d SeK milli on	Adjuste d	4.1%
---------------------------	------------------------------------------	--------------	------

Adjusted

reported

NET SALES EBIT OPERATING MARGIN

reported

SeK31million 9.5%

FINANCIAL SUMMARY (SEK m)		Jan - March			Full year
	2014	2013		April 2013 - March 2014	2013
Net sales	326.4	290.4	12.4%	1,292.5	1,256.5	2.9%
Earnings before depreciation (EBITDA)	39.3	7.5	31.8	74.6	42.8	31.8
Adjusted earnings before depreciation (EBITDA)	21.9	7.5	14.4	81.0	66.6	14.4
Operating earnings (EBIT)	30.9	-0.5	31.4	28.3	-3.1	31.4
Operating margin, %	9.5	-0.2	9.7	2.2	-0.2	2.4
Adjusted operating earnings (EBIT)	13.5	-0.5	14.0	49.7	35.7	14.0
Adjusted operating margin, %	4.1	-0.2	4.3	3.8	2.8	1.0
Order bookings	331.8	336.1	-1.3%	1,274.5	1,278.8	-0.3%

Other information

Accounting principles

This consolidated interim report has been drawn up in accordance with IAS 34 (Interim Financial Reporting) and the Swedish annual accounts act. The financial statement for the parent company has been drawn up in accordance with RFR 2 (Reporting for legal entities) of the Swedish Financial Accounting Standards Council.

With effect from the first quarter of 2014, FinnvedenBulten is applying IFRS 11 "Joint arrangements." The change in accounting policy means the Group's joint venture (currently 60 per cent of BBB Service Ltd and its subsidiaries) is accounted for under the equity method instead of the proportional consolidation method. The new principle affects financial statements retroactively, which is why a restatement of the financial statements for 2013 has been made. The effects of the restatement are presented on page 11. No transition effect arises from equity in the opening balance on 1 January 2013. Otherwise, the accounting principles are unchanged.

Risks and risk management

Exposures to operational and financial risks are a natural part of business activity and this is reflected in FinnvedenBulten's approach to risk management. The purpose is to identify and prevent risks and limit any damage that may result. The main risks that the Group is exposed to relate to the impact of the business cycle on demand, supplies of raw materials and their price variations, as well as general economic factors. For a more detailed description of these risks, see Note 3, Risks and risk management, of the company's 2013 annual report.

Seasonal variations

FinnvedenBulten is not exposed to traditional seasonal variations. The year reflects customers' production days, which vary between quarters. The lowest net sales and operating earnings normally occur in Q3, where there are fewest production days. The other quarters are relatively even although variations may occur.

Transaction with related parties

No transactions were made with related parties during the reporting period. For further information, see note 39 of the 2013 annual report.

Financial targets

• • The Group's target is to achieve profitable organic growth and to grow more strongly than the industry in general.
• • The Group's target is that the operating margin shall be at least seven (7) per cent.
• • The Group's target is that the return on average working capital shall be at least fifteen (15) per cent.

Employees

The total number of employees in the Group amounted on the closing day to 1,931 (1,801).

Contingent liabilities

During the report period there was no significant change in contingent liabilities.

Parent company

FinnvedenBulten AB (publ) owns, directly or indirectly, all the companies in the Group. The equity/assets ratio was 79.9% (82.3). Equity was SEK 1,184.9 million (1,204.1). Disposable cash and cash equivalents in the parent company totalled SEK 4.0 (10.5) million. The company had 8 employees on the closing day.

Important events after the end of the interim period

There were no significant events to report after the closing.

Auditor's verification

This report has not been verified by the company's auditor.

Göteborg, 29 April 2014 FinnvedenBulten AB (publ)

Johan Westman President and CEO

FinnvedenBulten's footprint

• • Production takes place mainly in Western and Eastern Europe with significant low-cost production in Poland and China.
• • Lean and well positioned manufacturing facilities in Europe and Asia.

Consolidated income statement

		Jan - March	12-month rolling	Full year
SEK million	2014	2013		April 2013 - Mars 2014	2013
Net sales	906.0	707.5	198.5	3,252.5	3,054.0
Cost of goods sold	-756.7	-602.8	-153.9	-2,721.7	-2,567.8
Gross profit	149.3	104.7	44.6	530.8	486.2
Other operating income	29.3	9.4	19.9	49.1	29.2
Selling expenses	-48.0	-37.0	-11.0	-165.8	-154.8
Administrative expenses	-63.7	-55.5	-8.2	-226.8	-218.6
Other operating expenses	-3.4	-3.0	-0.4	-32.2	-31.8
Share of profit of Joint Venture	–	0.7	-0.7	-5.1	-4.4
Operating earnings Note 1	63.5	19.3	44.2	150.0	105.8
Financial income	0.2	–	0.2	0.7	0.5
Financial expenses	-5.1	-10.6	5.5	-12.4	-17.9
Earnings before tax	58.6	8.7	49.9	138.3	88.4
Tax on period's earnings Note 2	-14.7	-2.8	-11.9	-12.1	-0.2
Earnings after tax	43.9	5.9	38.0	126.2	88.2
Attributable to	44.3	5.9	38.4	126.7	88.3
Parent company shareholders	-0.4	–	-0.4	-0.5	-0.1
Minority interests	43.9	5.9	38.0	126.2	88.2
Non-recurring items in the period
Note1 Restructuring of the die casting business
Impairment of fixed assets	–	–	–	-15.0	-15.0
Restructuring program	-7.8	–	-7.8	-7.8	–
Result from divestment	25.2	–	25.2	1.4	-23.8
Total non-recurring items with effect
on operating earning 1)	17.4	–	17.4	-21.4	-38.8
Note2 Tax on period's earnings
Tax effect on restructuring cost	-3.8	–	-3.8	4.7	8.5
Deferred tax on additionaltax loss carry forward	–	–	–	27.1	27.1
Total one-off effect on tax adjustment with effect
on period's earnings	-3.8	–	-3.8	31.8	35.6
Earnings per share , SEK2)	2.10	0.28	1.82	6.02	4.20
Earningsper share,adjustedforone-offeffect,SEK2)	1.46	0.28	1.18	5.53	4.35
Weighted outstanding ordinary shares, 000 2)	21,040.2	21,040.2	–	21,040.2	21,040.2

1) Non-recurring items of SEK -7.8 million are accounted as Cost of goods sold and SEK 25.2 million as Other operating income in Q1 2014. During Jan-Dec 2013 non-recurring items of SEK 8.2 million are accounted as Cost of goods sold and Other operating expenses of SEK 30.6 million whereof SEK 15.0 million as Impairment of fixed assets. 2) Both before and after dilution.

Consolidated statement of comprehensive income

		Jan - March	12-month rolling	Full year
SEK million	2014	2013		April 2013 - Mars 2014	2013
Earnings after tax	43.9	5.9	38.0	126.2	88.2
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of defined benifit pension plan net after tax	–	–	–	0.8	0.8
Items that may be reclassified subsequently to profit or loss
Derivative instruments, cash flow hedging, net after tax	–	0.5	-0.5	-1.4	-0.9
Exchange rate differences	0.3	-18.7	19.0	30.9	11.9
Total comprehensive income	44.2	-12.3	56.5	156.5	100.0
Attributable to
Parent company shareholders	44.6	-12.3	56.9	157.0	100.1
Minority interests	-0.4	–	-0.4	-0.5	-0.1
Total comprehensive income	44.2	-12.3	56.5	156.5	100.0

Consolidated balance sheet

SEK million	31-03-2014	31-03-2013	31-12-2013
ASSETS
Fixed assets
Intangible fixed assets 1)	220.4	195.7	215.9
Tangible fixed assets	450.9	403.2	444.9
Financial assets	144.2	108.0	147.0
Total fixed assets	815.5	706.9	807.8
Current assets
Inventories	532.5	472.6	526.5
Current receivables	735.9	668.9	658.8
Cash and cash equivalents	131.7	68.9	100.6
Total current assets	1,400.1	1,210.4	1,285.8
Total assets	2,215.5	1,917.3	2,093.6
EQUITY AN D LIA BILITIE S
Equity
Equity attributable to parent company shareholders	1,133.2	1,018.3	1,088.6
Minority interests	17.7	–	14.9
Total equity	1,150.9	1,018.3	1,103.5
Non-current liabilities
Non-current interest-bearing liabilities and provisions	336.0	272.7	245.9
Non-current non-interest-bearing liabilities and provisions	6.0	2.1	3.7
Total non-current liabilities	342.0	274.8	249.6
Current liabilities
Interest-bearing current liabilities	48.6	30.6	46.0
Current liabilities, non-interest-bearing	674.0	593.6	694.5
Total current liabilities	722.6	624.2	740.5
Total equity and liabilities	2,215.5	1,917.3	2,093.6
Pledged assets	1,533.0	1,365.9	1,491.5
Contingent liabilities	49.6	80.0	50.0

1) Whereof goodwill SEK 196,3 million (181,4).

Consolidated statement of changes in equity

SEK million	31-03-2014	31-03-2013	31-12-2013
Opening equity	1,030.5	1,030.6	1,030.6
Comprehensive income
Earnings after tax	43.9	5.9	88.2
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gain on post employment benifit obligations after tax	–	–	0.8
Items that may be reclassified subsequently to profit or loss
Derivative instruments, cash flow hedging, net after tax	–	0.5	-0.9
Exchange rate differences	0.3	-18.7	11.9
Total comprehensive income	44.2	-12.3	100.0
Transactions with shareholders
Minority interest	3.2	–	15.0
Dividend paid to parent company shareholders	–	–	-42.1
Total transactions with shareholders	3.2	–	-27.1
Closing equity	1,150.9	1,018.3	1,103.5

Consolidated cash flow statement

		Jan - March
SEK million	2014	2013	2013
Operating activities
Earnings after financial items	58.6	8.7	88.4
Adjustments for items not included in cash flow	-3.4	25.2	106.0
Taxes paid	-8.1	-7.0	-25.6
Cash flow from operating activities before changes in working capital	47.1	26.9	168.8
Cash flow from changes in working capital
Change in working capital	-77.5	24.6	45.9
Cash flow from operating activities	-30.4	51.5	214.7
Investing activities
Acquisition of intangible fixed assets	-1.3	-1.5	-6.6
Acquisition of tangible fixed assets	-44.2	-28.2	-111.1
Disposal of tangible fixed assets	15.3	2.0	43.0
Settlement of financial assets	-0.9	0.2	0.5
Cash flow from investing activities	-31.1	-27.5	-74.2
Financing activities
Change in overdraft facilities and other financial liabilities	92.7	-3.9	-49.3
Dividend paid to parent company shareholders	–	–	-42.1
Cash flow from financing activities	92.7	-3.9	-91.4
Cash flow for the period	31.2	20.1	49.1
Change in cash and cash equivalents	31.2	20.1	49.1
Cash and cash equivalents at start of financial year	100.6	50.5	50.5
Exchange rate difference in cash and cash equivalents	-0.1	-1.7	1.0
Cash and cash equivalents at end of period	131.7	68.9	100.6

Consolidated net debt composition

SEK million	31-03-2014	31-03-2013	31-12-2013
Non-current interest-bearing liabilities	314.5	251.5	225.0
Provisions for pensions	21.4	21.2	20.9
Current interest-bearing liabilities	48.6	30.6	46.0
Financial interest-bearing liabilities	-2.6	-3.4	-2.6
Cash and cash equivalents	-131.7	-68.9	-100.6
Net debt	250.2	231.0	188.7

Consolidated segment reports

		Jan - March 2014
SEK million	Bulten	Finnveden Metal Structures	Other*	The Group
Net sales	581.5	326.4	-1.9	906.0
Earnings before depreciation (EBITDA)	45.0	39.3	-1.4	82.9
Adjusted earnings before depreciation (EBITDA) 1)	45.0	21.9	-1.4	65.6
Operating profit (EBIT)	34.0	30.9	-1.4	63.5
Operating margin, %	5.8	9.5	–	7.0
Adjusted operating margin (EBIT) 1)	34.0	13.5	-1.4	46.1
Adjusted operating margin, % 1)	5.8	4.1	–	5.1

SEK million		Jan - March 2013
	Bulten2)	Finnveden Metal Structures	Other*	The Group
Net sales	418.6	290.4	-1.5	707.5
Earnings before depreciation (EBITDA)	31.2	7.5	-0.2	38.5
Operating profit (EBIT)	20.1	-0.5	-0.3	19.3
Operating margin, %	4.8	-0.2	–	2.7

* Other includes parent company and Group eliminations.

1) Adjustment relates to restructuring items within division Finnveden Metal Structures of SEK 17.4 million during Q1.

2) Adjusted for change of accounting policy from the proportionate consolidation method to the equity method regarding the joint venture. See section "Change in accounting policy - restatement of comparative figures" for a description of the revaluation effect.

change in accounting policy - restatement of comparative figures

With effect from the first quarter of 2014, FinnvedenBulten is applying IFRS 11 "Joint arrangements." The change in accounting policy means the Group's joint venture is accounted for under the equity method instead of the proportional consolidation method. The new principle affects financial statements retroactively, which is why a restatement of the financial statements for 2013 has been made below. The tables show the restated figures under the new principles, and the translation effect arising compared to previously reported amounts. The translation effect is entirely attributable to the Bulten division.

SEK million	Q1 2013	Revaluation effect	Q2 2013	Revaluation effect	Q3 2013	Revaluation effect	Q4 2013	Revaluation effect
Net sales	819.8	-3.2	714.7	0.5	812.0	2.3	707.5	-1.9
Gross result	133.9	-3.5	112.9	-3.9	134.7	-6.0	104.7	-5.0
Operating profit (EBIT)	40.7	0.1	24.7	0.3	21.1	0.3	19.3	-0.2
Net result	28.7	–	14.2	–	39.4	–	5.9	–

SEK million	Jan-Dec 2013	Revaluation effect	Jan-Sept 2013	Revaluation effect	Jan-June 2013	Revaluation	effect Jan-March 2013	Revaluation effect
Net sales	3,054.0	-7.0	2,234.2	-3.7	1,519.5	-4.2	707.5	-1.9
Gross result	486.2	-18.4	352.3	-14.9	239.4	-11.0	104.7	-5.0
Operating profit (EBIT)	105.8	0.5	65.1	0.4	40.4	0.1	19.3	-0.2
Net result	88.2	–	59.5	–	45.3	–	5.9	–

SEK million	31-12-2013	Revaluation effect	30-09-2013	Revaluation effect	30-06-2013	Revaluation effect	31-03-2013	Revaluation effect
Fixed assets	807.8	-1.8	731.5	-1.5	730.7	-1.4	706.9	-1.1
Current assets	1,285.8	15.1	1,241.7	16.8	1,242.8	15.1	1,210.3	15.9
Total equity	1,103.5	–	1,042.9	–	1,026.9	–	1,018.3	–
Non-current liabilities	249.6	–	273.1	–	252.3	–	274.8	–
Current liabilities	740.5	13.3	657.2	15.3	694.4	13.7	624.1	14.8

Income statement, parent company

		Jan - March
SEK million	2014	2013	2013
Net sales	6.9	6.7	27.2
Cost of goods sold	–	–	–
Gross profit	6.9	6.7	27.2
Administrative expenses	-8.8	-7.5	-30.9
Operating earnings	-1.9	-0.8	-3.7
Income from other investments held as fixed assets	–	–	-4.5
Interest expenses and similar items	-2.6	-2.5	-10.5
Earnings after financial items	-4.5	-3.3	-18.7
Appropriations	–	–	15.5
Earnings before tax	-4.5	-3.3	-3.2
Tax on earnings for the year 1) 2)	1.4	0.7	26.6
Earnings after tax	-3.1	-2.6	23.5

1) Deferred tax revenue from additional tax losses of SEK 27.1 million was reported in the period January - December 2013.

Balance sheet, parent company

SEK million	31-03-2014	31-03-2013	31-12-2013
ASSETS
Fixed assets
Tangible fixed assets
Equipment	0.2	0.2	0.2
Total tangible fixed assets	0.2	0.2	0.2
Financial fixed assets
Participations in Group companies	1,382.5	1,381.3	1,382.5
Deferred tax assets	76.9	49.6	75.5
Other non-current receivables	0.6	5.5	0.7
Total financial fixed assets	1,460.0	1,436.4	1,458.7
Total fixed assets	1,460.2	1,436.6	1,458.9
Current assets
Current receivables	18.2	16.5	18.1
Cash and cash equivalents	4.0	10.5	4.1
Total current assets	22.2	27.0	22.2
Total assets	1,482.4	1,463.6	1,481.1
EQUITY AN D LIA BILITIE S
Equity	1,184.9	1,204.1	1,188.0
Non-current liabilities
Liabilities to Group companies	283.1	249.0	280.6
Total non-current liabilities	283.1	249.0	280.6
Current liabilities
Other current liabilities	14.4	10.5	12.5
Total current liabilities	14.4	10.5	12.5
Total equity and liabilities	1,482.4	1,463.6	1,481.1
Pledged assets	1,382.5	1,385.7	1,382.5
Contingent liabilities	12.8	45.5	13.4

Consolidated key indicators

	Jan - March		Full year
THE GROUP	2014	2013	2013
Margins
EBITDA margin, %	9.2	5.4	6.4
Adjusted EBITDA margin, %	7.2	5.4	7.2
EBIT margin (operating margin), %	7.0	2.7	3.5
Adjusted EBIT margin (operating margin), %	5.1	2.7	4.7
Net margin, %	4.8	0.8	2.9
Adjusted net margin, %	3.3	0.8	3.0
Capital structure
Interest coverage ratio, times	12.6	1.8	5.9
Data per share
Earnings per share, SEK *)	2.10	0.28	4.20
Earningspershare,adjustedforone-offeffects,SEK*) 1)	1.46	0.28	4.35
Number of outstanding ordinary shares
Weighted outstanding ordinary shares, 000 *)	21,040.2	21,040.2	21,040.2

THE GROUP	31-03-2014	31-03-2013	31-12-2012
Capital structure
Net debt/equity ratio, times	0.2	0.2	0.2
Equity/assets ratio, %	51.9	54.2	52.7
Other
Net debt, SEK m	250.2	231.0	188.7

		12-month rolling	Full year
THE GROUP , 12 months rolling	April 2013 - Mars 2014	April 2012 - Mars 2013	2013
Return indicators
Return on capital employed, %	10.6	6.1	7.8
Adjusted return on capital employed, % 5)	12.0	6.1	10.6
Return on equity, %	11.8	1.9	8.3
Adjusted return on equity, % 2)	10.8	3.7	8.6
Capital structure
Capital turnover, times	2.3	2.1	2.2
Employees
Net sales per employee, SEK '000	1,694.4	1,590.2	1,662.5
Operating profit/loss per employee, SEK '000	77.7	45.8	57.6
Average no. of employees on closing date	1,931	1,801	1,837

*) Refers to both before and after dilution.

Definitions

Definitions of key indicators are unchanged compared with those used in the 2013 annual report. Other key indicators not used in the annual report are explained below.

1) Earnings per share adjusted for non-recurring items: Net earnings adjusted for non-recurring items divided by the number

• of weighted outstanding ordinary shares on the closing day. Current and deferred tax is considered for all adjusted items.
• 2) Adjusted return on equity: Net earnings adjusted for non-recurring items divided with average equity.
• 3) Net debt/Adjusted EBITDA: Net debt divided with Earnings before depreciation (EBITDA) adjusted with non recurring items.
• 4) Adjusted operating earnings: Operating earnings adjusted for non-recurring costs.
• 5) Adjusted return on capital employed: Earnings after financial items plus financial costs and non-recurring costs as a percentage of average capital employed.

6) Adjusted earnings before depreciation (EBITDA): Earnings before depreciation (EBITDA) adjusted with non-recurring items.

7) The comparative figures for 2012 have not been restated regarding the new accounting policy for joint ventures, because the conversion effects are not deemed to be significant.

Consolidated quarterly data

	2014		2013			20127)
THE GROUP	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Order bookings	963.0	927.4	709.4	826.2	819.9	577.8	609.7	780.7	864.7
Income statement
Net sales	906.0	819.8	714.7	812.0	707.5	676.7	649.3	830.4	807.1
Gross earnings	149.3	133.9	112.9	134.7	104.7	92.7	92.3	128.7	132.9
Earnings before depreciation (EBITDA)	82.9	56.7	44.7	54.8	38.5	30.9	30.6	59.3	59.0
Adjusted earnings before depreciation (EBITDA) 6)	65.5	60.7	48.9	70.4	38.5	30.9	30.6	59.3	59.0
Operating earnings (EBIT)	63.5	40.7	24.7	21.1	19.3	11.5	11.4	40.2	40.2
Adjusted operating earnings (EBIT) 4)	46.1	44.7	28.9	51.7	19.3	11.5	11.4	40.2	40.2
Cash flow statement
Cash flow from current activities	-30.4	84.8	13.8	64.7	51.5	43.5	-83.7	62.5	50.1
Cash flow from investment activities	-31.1	-39.7	15.2	-22.2	-27.5	-37.2	-28.7	-21.6	-22.9
Cash flow from financing activities	92.7	-24.7	-14.0	-48.8	-3.9	-1.4	39.2	-43.8	-4.2
Cash flow for the period	31.2	20.3	15.0	-6.3	20.1	4.9	-73.2	-2.9	23.0
Data per share
Earnings per share, SEK *)	2.10	1.37	0.68	1.87	0.28	-0.70	0.15	1.20	1.42
Earningsper share,adjustedforone-offeffects,SEK*)1)	1.46	1.52	0.83	1.72	0.28	0.21	0.15	1.20	1.42
Number of outstanding ordinary shares
Weighted outstanding ordinary shares,000*)	21,040.2	21,040.2	21,040.2	21,040.2	21,040.2	21,040.2	21,040.2	21,040.2	21,040.2
THE GROUP	31-03-2013		31-12-2013 30-09-2013 30-06-2013 31-03-2013				31-12-201230-09-201230-06-2012 31-03-2012
Balance sheet
Fixed assets	815.5	807.8	731.5	730.7	706.9	705.0	713.5	701.1	702.8
Current assets	1,400.1	1,285.8	1,241.7	1,242.8	1,210.4	1,145.0	1,225.2	1,272.9	1,267.2
Equity	1,150.9	1,103.5	1,042.9	1,026.9	1,018.3	1,030.6	1,044.6	1,047.1	1,067.6
Non-current liabilities	342.0	249.6	273.1	252.2	274.8	272.4	275.6	243.5	246.2
Current liabilities	722.6	740.6	657.2	694.4	624.2	547.0	618.5	683.4	656.2
Other
Net debt	250.2	188.7	234.6	225.7	231.0	246.1	250.4	132.8	135.6
	April 2013-	January 2013-	October 2012-	July 2012-	April 2012-	January 2012-	October 2011-	July 2011-	April 2011-
GROUP , 12 months rolling	March 2014	December 2013	September 2013	June 2013	March 2013	December 2012	September 2012	June 2012	March 2012
Order bookings	3,426.0	3,282.9	2,933.3	2,833.7	2,788.1	2,832.9	3,035.2	3,161.5	3,235.2
Income statement
Net sales	3,252.5	3,054.0	2,910.9	2,845.5	2,863.9	2,963.5	3,089.7	3,144.3	3,096.0
Gross earnings	530.9	486.2	444.9	424.5	418.4	446.6	493.1	517.0	539.2
Earnings before depreciation (EBITDA)	239.1	194.7	168.8	154.6	159.2	179.8	210.7	240.7	260.7
Adjusted earnings before depreciation (EBITDA) 6)	245.4	218.5	188.6	170.2	159.2	179.8	210.7	240.7	260.7
Operating earnings (EBIT)	150.0	105.8	76.6	63.3	82.4	103.3	135.2	166.9	188.0
Adjusted operating earnings (EBIT) 4)	171.4	144.7	111.6	93.8	82.4	103.3	135.3	167.2	193.7
Employees
Net sales per employee, SEK '000	1,694.4	1,662.5	1,615.4	1,578.2	1,590.2	1,637.3	1,690.2	1,707.0	1,718.1
Operating profit/loss per employee, SEK '000	77.7	57.6	42.5	35.1	45.8	57.1	73.9	90.6	104.3
Average no. of employees on closing date	1,931	1,837	1,802	1,803	1,801	1,810	1,828	1,842	1,802
Return indicators
Capital employed, %	10.6	7.8	5.8	4.9	6.1	8.2	10.4	12.8	14.6
Adjusted return on capital employed, %5)	12.0	10.6	8.4	7.2	6.1	8.2	10.5	12.8	15.0
Equity, %	11.8	8.3	4.3	3.2	1.9	4.2	8.5	10.5	12.2
Adjusted return on equity,% 2)	10.8	8.6	6.1	4.8	3.7	6.1	8.5	10.5	12.2
Other
Net debt/EBITDA	1.1	1.0	1.4	1.5	1.5	1.4	1.2	0.6	0.5
Net debt/ Adjusted EBITDA 3)	1.0	0.9	1.2	1.3	1.5	1.4	1.2	0.6	0.5

*) Refers to both before and after dilution.

FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions — Bulten and Finnveden Metal Structures — both with strong positions in their respective customer segments. Customers are mainly found in the automotive and engineering industries in Europe, Asia and the US. Production takes place Sweden, Germany, Poland and China with ongoing establishment in Russia.

Future financial report dates

11 July 2014 | Half year report January - June 2014 23 October 2014 | Interim report January - September 2014 5 February 2015 | Full year report January - December 2014

The reports are available on FinnvedenBulten's website, www.finnvedenbulten.com as of the above dates.

For further information, please contact Kamilla Oresvärd, Vice President Corporate Communications. Tel. +46 31-734 59 17, Switchboard: +46 31-734 59 00, e-mail: kamilla.oresvard@finnvedenbulten.com

Invitation to conference call

Investors, analysts and media are invited to participate in the teleconference on April 29 at 14:30 CET when the report will be presented by FinnvedenBulten's President and CEO Johan Westman. Additional participants from the company are Executive Vice President Tommy Andersson and CFO Helena Wennerström.

To participate, please call 5 minutes before the opening of the conference call to Sweden +46 8 506 443 86, UK +44 207 153 9154, US +1 877 423 0830. Code: 147938#.

A replay of the telephone conference is available until May 13, 2014 on the phone numbers Sweden +46 8-505 564 73, UK +44 203 364 5200, USA +1 877 679 2989. Code: 351119#.

HEAD OFFICE

FinnvedenBulten AB (publ)

Box 9148 400 93 Göteborg SWEDEN Visiting address: August Barks Gata 6 B Tel +46 31-734 59 00 Fax +46 31-734 59 09 www.finnvedenbulten.com

DIVISIONS

Bulten Box 9148 400 93 Göteborg SWEDEN Visiting address: August Barks Gata 6 B Tel +46 31-734 59 00 Fax +46 31-734 59 39

Finnveden Metal Structures Box 9148 400 93 Göteborg SWEDEN Visiting address: August Barks Gata 6 B Tel +46 31-734 59 00 Fax +46 31-734 59 59