Concentric — Earnings Release 2012

Oct 18, 2012

First nine months of 2012: Continued profit and cash improvements on flat sales

• Year on year sales flat at MSEK 1,698 (1,706) for first nine months of 2012 (down -4% in constant currency). The Group's average sales per working day in the first nine months of 2012 was MSEK 9.0 (8.9).
• EBIT for the first nine months of 2012 was MSEK 227 (201), up 13% year on year, increasing the operating margin to 13.4% (11.8). Adjusting for 'one-off' items affecting comparability, the underlying EBIT and EBIT margin was MSEK 236 (225) and 13.9% (13.2) respectively.
• Earnings after tax were MSEK 143 (116) - EPS of SEK 3.24 (2.63). Adjusting for post-tax impact of 'one-off' items affecting comparability, the underlying EPS was SEK 3.36 (3.02).
• Cash flow from operating activities was strong in the first nine months of 2012, amounting to MSEK 190 (122), which represents SEK 4.30 (2.76) per share.
• The Group's net debt was MSEK 78 (220) at 30 September 2012, representing a reduction of MSEK 124 for the nine months, derived primarily from operating cash flows, before taking account of the dividend payout of MSEK 88 (nil) and buy-back of own shares of MSEK 12 (nil). Accordingly, the gearing ratio (debt/equity) was 8% (25).

	Jul-Sep		Jan-Sep
Amounts in MSEK	2012	2011	Change	2012	2011	Change
Net sales	492	593	-17%	1,698	1,706	0%
Operating income	66	83	-21%	227	201	13%
Earnings before tax	61	79	-24%	205	174	18%
Net income for the period	45	52	-15%	143	116	23%
Operating margin, %	13.4	14.1	-0.7	13.4	11.8	1.6
Return on capital employed, % 1)	25.0	21.0	4.0	25.0	21.0	4.0
Return on equity, % 2)	21.7	22.2	-0.5	21.7	22.2	-0.5
Earnings per share, SEK	1.01	1.19	-0.18	3.24	2.63	0.61

Concentric

1) The ROCE has been calculated on a rolling 12 month basis.

2) The ROE is calculated as Net income divided by the average Equity on a rolling 12 month basis.

Third quarter of 2012: Strong management of costs and cash, despite fall in volumes

• Year on year sales fell significantly by -17% to MSEK 492 (593) during the third quarter of 2012 (down -18% in constant currency). The Group's average sales per working day in the third quarter of 2012 was MSEK 7.9 (9.4). The sharp decline in demand was experienced across both regions driven primarily by customer de-stocking.
• EBIT for the third quarter of 2012 was MSEK 66 (83), down 20% year on year, taking the EBIT margin to 13.4% (14.1). Adjusting for 'one-off' items affecting comparability, the underlying EBIT and EBIT margin was MSEK 63 (83) and 12.8% (14.1) respectively.
• Earnings after tax were MSEK 45 (52) - EPS of SEK 1.01 (1.19). Adjusting for post-tax impact of 'one-off' items affecting comparability, the underlying EPS was SEK 0.95 (1.19).
• Cash flow from operating activities was also strong in the third quarter of 2012, amounting to MSEK 61 (55), which represents SEK 1.39 (1.24) per share.

President and CEO, David Woolley, comments on the interim report for the first nine months of 2012:

"Global trading conditions in our end-markets became more difficult through the third quarter, with the US end-markets also slowing down. The economic "head wind" reported in the second quarter persisted and was compounded by de-stocking of product by the original equipment manufacturers. The reduction in demand, amplified in the supply chain by customer de-stocking, has adversely affected Concentric"s sales in a similar manner to that experienced during the 2008/09 recession, although not as severe. As a result, year-on-year sales were down -18% in constant currency for the third quarter.

Concentric has responded to this sharp decline in demand by rapidly and decisively taking action to flex the business accordingly. Operating margins were maintained at 13.4%, generating a cash inflow from operations of MSEK 61 and reducing the gearing (debt/equity) ratio to 8% for the third quarter. This resilience in the Group"s performance has been achieved through effective cost management and tight control of capital as activity levels have dropped, supported by the Concentric Business Excellence programme.

Looking forward, the orders received during the third quarter of 2012 were slightly below sales, indicating that activity levels will be slightly lower in the fourth quarter because of a combination of lower demand and de-stocking.

It is apparent from the latest market indices that current customer order trends have not yet been reflected in the full year forecasts for 2012. However, the announcement today of two new multi-year supply contracts on Euro 6 / US EPA 13 engine launches for global truck manufacturers reaffirms our ambition to outperform the underlying market trend and we continue to see further opportunities for growth from our leading technology addressed at the key market drivers, such as emissions legislation and reduced fuel consumption."

Key business events – first nine months of 2012:

• Alfdex, a 50/50 joint venture between Alfa Laval and Concentric, signed an exclusive supplier agreement with one of the world"s largest producer of heavy trucks. The agreement to supply Alfdex Oil Mist Separators is valid until 2017, with a total estimated sales during the contract period for the joint venture of at least SEK 500 million.
• During the first quarter of 2012, the group has invested in four new test stations for coolant pumps at its research and development facility based in Birmingham, UK to support the ongoing development of the next generation of engine products. The new test stations will enable accurate performance evaluation of engine coolant pumps, by measuring their flow, pressure, power consumption and cavitation performance.
• In addition, as part of its ongoing investment program, Concentric also unveiled a new automated facility at its production facility based in Birmingham, UK to assemble and test oil pumps for the new Perkins Tier 4 engine.
• New multi-year supply contract secured with a major global truck manufacturer for the supply of bespoke, highly-efficient water pumps for a new Euro 6 / US EPA 13 engine. SOP late Q4 2012, ramping-up throughout 2013, in line with the legislative milestone of 1st January, 2014. Annual revenues of MSEK 74 anticipated on a mature volume of 60,000 engines p.a.

New multi-year supply contract secured with a major global fuel systems supplier for an advanced fuel transfer pump on a fuel system for a new Euro 6 / US EPA 13 engine, to be launched by one of the world"s largest truck manufacturers. SOP in Q4 2012, ramping-up throughout 2013, in line with the legislative milestone of 1st January, 2014. Annual revenues of MSEK 21 anticipated on a mature volume of 55,000 fuel systems p.a.

	Jul-Sep		Jan-Sep
Amounts in MSEK	2012	2011	Change	2012	2011	Change
Net sales	492	593	-17%	1,698	1,706	0%
Operating income	66	83	-21%	227	201	13%
Earnings before tax	61	79	-24%	205	174	18%
Net income for the period	45	52	-15%	143	116	23%
Operating margin, %	13.4	14.1	-0.7	13.4	11.8	1.6
Return on capital employed, % 1)	25.0	21.0	4.0	25.0	21.0	4.0

Concentric

1) The ROCE has been calculated on a rolling 12 month basis.

Net sales and operating income - Group

Sales for the first nine months were flat year-on-year at MSEK 1,698 (1,706). In constant currency sales were actually down -4% compared with the corresponding period in the preceding year. The Group"s average sales per working day in the first nine months of 2012 was MSEK 9.0 (8.9).

Sales decreased by -17% to MSEK 492 (593) during the third quarter of 2012 compared to the same quarter in 2011. In constant currency, sales were down -18% year-on-year. The Group"s average sales per working day in the third quarter of 2012 was MSEK 7.9 (9.4).

Operating income and margin for the first nine months of 2012 amounted to MSEK 227 (201) and 13.4% (11.8) respectively. This year-on-year improvement reflects a strong contribution from sales as well as effective cost management through the Concentric Business Excellence program. Reported operating income for the first nine months of 2012 included the following items affecting comparability:

• Following actions initiated by management to selectively buy-out certain defined pension obligations from UK members using existing scheme assets, the Group has recognised curtailment gains of MSEK 8 (nil) in the third quarter of 2012;
• Upon completion of the sale of the Group"s vacant freehold property in Statesville, North Carolina, USA, a profit on disposal of MSEK 1 (nil) has been recognised in the third quarter of 2012;
• Pension amortisation charges of MSEK -18 (nil) in respect of previously unrecognised actuarial losses, have been booked during the first nine months of 2012 under the current "corridor approach" for pension accounting; and
• De-merger costs of MSEK nil (-24) related to the separation from Haldex during first half of 2011.

Adjusting for these items, the underlying operating income and operating margin amounted to MSEK 236 (225) and 13.9% (13.2) respectively.

Operating income and margin for the third quarter of 2012 amounted to MSEK 66 (83) and 13.4% (14.1) respectively. Reported operating income for the third quarter of 2012 included the following items affecting comparability:

• Pension curtailment gains of MSEK 8 (nil), noted above, on the Group"s main UK defined benefit pension scheme;
• Profit on disposal of MSEK 1 (nil) recognised on completion of the sale of the vacant freehold property in Statesville, North Carolina, USA; and
• Pension amortisation charges of MSEK -6 (nil) in respect of previously unrecognised actuarial losses, under the current "corridor approach" for pension accounting.

Adjusting for these items, the underlying operating income and operating margin amounted to MSEK 63 (83) and 12.8% (14.1) respectively.

Net financial items

Net financial expenses for the first nine months of 2012 amounted to MSEK 22 (27), comprising interest on loans and commission relating to commitments of unutilized credit facilities and other interest payable of MSEK 10 (27) and net financial expenses in respect of net pension liabilities of MSEK 12 (0).

Net financial expenses incurred for the third quarter of 2012 amounted to MSEK 5 (4), comprising interest on loans and commission relating to commitments of unutilized credit facilities and other interest payable of MSEK 3 (4) and net financial expenses in respect of net pension liabilities of MSEK 2 (0).

Accordingly, consolidated income before taxation amounted to MSEK 205 (174) for the first nine months of 2012 and MSEK 61 (79) for the third quarter of 2012.

Taxes

Tax expenses for the third quarter of 2012 amounted to MSEK 16 (27), equal to an effective annual tax rate of 27% (33%) for the period, bringing the effective annual tax rate for the first nine months of 2012 to 30% (33%).

Any movements in the group"s effective rate largely reflect changes in the mix of taxable earnings across the various tax jurisdictions in which the group operates.

Net income and Earnings per share

Earnings after taxation for the first nine months of 2012 amounted to MSEK 143 (116).Earnings per share amounted to SEK 3.24 (2.63).After adjusting for the post-tax impact of items affecting comparability noted above, the earnings per share was SEK 3.36 (3.02).

Earnings after taxation for the third quarter of 2012 amounted to MSEK 45 (52).Earnings per share amounted to SEK 1.01 (1.19).After adjusting for the post-tax impact of items affecting comparability noted above, the earnings per share was SEK 0.95 (1.19).

Segment reporting

The Americas segment comprises the Group's operations in the USA. As our operations in India and China remain relatively small in comparison to our Western facilities, Europe & RoW continues to be reported as a single combined segment, in line with our management structure, comprising the Group's operations in Europe, India and China.

The evaluation of an operating segment's earnings is based on operating income or EBIT. Assets and liabilities not allocated to segments are financial assets and liabilities.

Americas	Jul-Sep			Jan-Sep
Amounts in MSEK	2012	2011	Change	2012	2011	Change
Net sales - external	287	329	-13%	973	924	5%
Net sales - total	289	331	-13%	980	932	5%
Operating income	33	36	-9%	118	98	20%
Operating margin on external sales, %	11.7	11.1	0.6	12.2	10.7	1.5
Operating margin on total sales, %	11.6	11.1	0.5	12.1	10.6	1.5
Return on capital employed, % 1)	40.6	28.2	12.4	40.6	28.2	12.4

1) The ROCE has been calculated on a rolling 12 month basis.

Net sales and operating income - Americas

Total sales in constant currency were -1% lower in the first nine months of 2012 and -16% lower in the third quarter of 2012, when compared with the corresponding periods in the preceding year. Third quarter volumes in the Agricultural machinery sector have largely been sustained, taking into account seasonal reductions. However, there has been a sharp decline in demand during the quarter for on-highway medium/heavy trucks and heavy construction and mining equipment. As a result, average total sales per working day fell to MSEK 4.7 (5.3) for the third quarter of 2012, taking the average for the nine months of 2012 to MSEK 5.2 (4.9).

Operating income for the first nine months of 2012 amounted to MSEK 118 (98), up 20% year on year, increasing the operating margin based on total sales to 12.1% (10.6). The year on year earnings improvement can be attributed to both the increase in sales volumes as well as effective cost management through the Concentric Business Excellence program.

Operating income for the third quarter of 2012 amounted to MSEK 33 (36), increasing the operating margin based on total sales to 11.6% (11.1) respectively.

Europe & RoW	Jul-Sep			Jan-Sep
Amounts in MSEK	2012	2011	Change	2012	2011	Change
Net sales - external	205	265	-23%	725	782	-7%
Net sales - total	228	298	-24%	814	882	-8%
Operating income	33	47	-31%	109	120	-9%
Operating margin on external sales, %	16.0	17.8	-1.8	15.0	15.3	-0.3
Operating margin on total sales, %	14.3	15.7	-1.4	13.4	13.6	-0.2
Return on capital employed, % 1)	21.8	20.0	1.8	21.8	20.0	1.8

1) The ROCE has been calculated on a rolling 12 month basis.

Net sales and operating income – Europe & RoW

Total sales in constant currency were -8% down in the first nine months of 2012 and -21% down in the third quarter of 2012, when compared with the corresponding periods in the preceding year. During the third quarter all end-markets have continued to soften, with the sharpest declines experienced in construction equipment and medium/heavy trucks. As a result, average total sales per working day fell to MSEK 3.7 (4.7) for the third quarter of 2012, taking the average for the nine months of 2012 to MSEK 4.3 (4.8).

Operating income for the first nine months of 2012 amounted to MSEK 109 (120), taking the operating margin based on total sales to 13.4% (13.6). Adjusting for one-off pension items affecting comparability, the operating income was MSEK 119 (14.6%).

Operating income for the third quarter of 2012 amounted to MSEK 33 (47), taking the operating margin based on total sales to 14.3% (15.7). Adjusting for one-off pension items affecting comparability, the underlying operating income actually increased to MSEK 31 (13.6%).

Market

The market information pertaining to diesel engines detailed below is based on statistics from Power Systems Research. The market information pertaining to hydraulics products detailed below is based on statistics from Off-Highway Research for construction equipment and the International Truck Association for lift trucks.

End-markets & Regions

		Q3-12 vs. Q3-11			Q3 YTD-12 vs. Q3 YTD-11			FY-12 vs. FY-11
	North America	Europe	China/ India	North America	Europe	China/ India	North America	Europe	China/ India
Agricultural machinery
Diesel engines	3%	-2%	9%	2%	-3%	6%	3%	-1%	10%
Construction equipment
Diesel engines	27%	-7%	-15%	24%	-8%	3%	27%	-6%	6%
Hydraulic equipment	8%	-5%	n/a	9%	-4%	n/a	7%	-1%	n/a
Trucks
Light vehicles	3%	n/a	n/a	2%	n/a	n/a	3%	n/a	n/a
Medium/Heavy vehicles	8%	-7%	-14%	7%	-7%	-14%	8%	-6%	-12%
Industrial Applications
Other Off-highway	3%	-6%	8%	1%	-8%	5%	3%	-5%	8%
Hydraulic lift trucks	-4%	0%	n/a	4%	2%	n/a	3%	0%	n/a

The latest market indices above provide a very similar outlook as reported last quarter, highlighting year on year growth across all North American end-markets for the first nine months of 2012. Conversely, with the exception of the hydraulic lift trucks market, all European end-markets are flat or down slightly year on year for the first nine months of 2012.

North American end-markets

• The latest market indices continue to report strong growth in Construction equipment for both engine and hydraulic products, although it should be noted that this market started the year from a pretty low base. This is contrary to the actual demand experienced by Concentric in the third quarter, with volumes down on both last quarter and year-on-year.
• Growth in both the Light and Medium/Heavy truck markets is also reported to continue in 2012, building upon the recovery experienced in 2011. This is in stark contrast with the drop-off in customer orders that Concentric has seen during the third quarter, which clearly indicates there is a "de-stocking" affect at the OEMs.

The diesel engine market for Agricultural machinery and Industrial applications for other Offhighway vehicles continues to report steady improvement, up 3% year on year for the third quarter of 2012. Volumes in Concentric for Agricultural machinery have largely been sustained during the quarter, taking into account the normal seasonal reductions.

European end-markets

All European sectors remain depressed, with no obvious signs of any improvement before the end of 2012.

Emerging end-markets

Market indices suggest that the third quarter of 2012 still remains fairly weak for the emerging markets, particularly for Construction equipment and Trucks, which is consistent with Concentric"s experience. However, there are some signs of improvement in order levels for the fourth quarter of 2012 in India.

Seasonality

Each end-market will have its own seasonality profile based on the end-users, e.g. sales of Agricultural machinery will be linked to harvest periods in the Northern and Southern hemispheres. However, there is no significant seasonality in the demand profile of Concentric"s customers and, therefore, the most significant driver is actually the number of working days in the quarter.

The weighted average number of working days in the third quarter of 2012 was 62 days (63) for the Group, with 61 days (63) for the Americas and 62 days (62) for Europe and RoW.

		Q3-12 vs. Q3-11			Q3 YTD-12 vs. Q3 YTD-11			FY-12 vs. FY-11
	Americas	Europe & ROW	Group	Americas	Europe & ROW	Group	Americas	Europe & ROW	Group
Blended market rates 1)	7%	-3%	3%	6%	-4%	2%	7%	-2%	3%
Concentric actual rates 2)	-16%	-21%	-18%	-1%	-8%	-4%

Consolidated sales development

1) Based on latest market indices blended to Concentric's mix of end-markets and locations

2) Based on actual sales in constant currency

Overall, market indices suggest a year-on-year increase of production rates for the third quarter of 2012, blended to the Group"s end-market and regions, of approximately 3%. This is in stark contrast to actual demand levels experienced by Concentric during the third quarter, which were down -18% year-on-year in constant currency. The discrepancy appears to be a combination of "de-stocking" from the OEMs, coupled with the fact that, as previously noted, movements in the market indices seem to lag changes in OEM build rates by three to six months.

Market indices still predict a full year-on-year increase of production rates for 2012, blended to the Group"s end-markets and regions, of 3%, in line with last quarterly update published three months ago. However, it is apparent from the latest market indices that our current customer order trends have not yet been reflected in the full year forecasts for 2012.

Cash flow

Cash flow from operating activities for the first nine months of 2012 was strong and amounting to MSEK MSEK 190 (122), which represents SEK 4.30 (2.76) per share. There were no unusual or one-off items in the group"s cash flow from operating activities for the first nine months of 2012, i.e. this cash conversion rate reflects the group"s underlying robust working capital management disciplines.

The net cash inflow of MSEK 131 before dividend payments (MSEK -88) and buy-back of own shares (MSEK -12) represents a cash generation of SEK 2.97 per share for the first nine months of 2012.

Cash flow from operating activities was strong in the third quarter, amounting to MSEK 61 (55), which represents SEK 1.39 (1.24) per share.

Net investments in fixed assets

The Group"s net investments in fixed assets for the third quarter and the first nine months of 2012 were MSEK 14 (10) and MSEK 36 (35) respectively. Capitalized development costs of MSEK 2 (2) were included in the net investments made for the first nine months of 2012.

During the third quarter of 2012, the group completed the sale of its vacant freehold property in Statesville, North Carolina, USA for a net consideration which of MSEK 6 which gave rise to a profit on disposal of MSEK 1.

Financial position

As at 30 September, the Group"s net debt was MSEK 78 (220), comprising loans and corporate bonds of MSEK 187 (236) and pension liabilities of MSEK 103 (112), net of cash amounting to MSEK 212 (128).

Shareholders" equity amounted to MSEK 944 (876), resulting in a gearing ratio of 8% (25).

Employees

The average number of full-time equivalents employed by the group during the third quarter of 2012 was 1,117 (1,202).

Related-party transactions

Other than those transactions with the wider Haldex AB group in the first half of 2011, no transactions have been carried out between Concentric AB and its subsidiary undertakings and any related parties that had a material impact on either the company"s or the group"s financial position and results.

Business overview

A description of the business concept, key strategic objectives, value chain, business model and driving forces for the Concentric AB group is presented on pages 8-17 of the 2011 Annual Report (http://www.concentricab.com/\_downloads/AGM-2012/Concentric%20AR%202011.pdf).

Significant risks and uncertainties

There are no changes in the significant risks and uncertainties for Concentric AB and its subsidiary undertakings compared with those as presented on pages 31-34 of the 2011 Annual Report (http://www.concentricab.com/\_downloads/AGM-2012/Concentric%20AR%202011.pdf).

Acquisitions and divestments

There were no acquisitions or divestments in either the current or preceding period.

Events after the balance-sheet date

There were no significant post balance sheet events to report.

Parent Company

The parent company, Concentric AB, was formed in December, 2010. As part of the restructuring of the Haldex Group, Concentric AB acquired Hydraulics operations in Europe, India and Hong Kong from Haldex in December, 2010 and the Hydraulics operations in the USA in March, 2011.

Net sales and operating profit for the first nine months of 2012 amounted to MSEK 16 (nil) and a profit of MSEK 7 (loss -25) respectively. The improvement in the result reflects the sales made to subsidiaries in the current period for services rendered and that the prior year result included one-time costs totalling MSEK 17 associated with the de-merger.

In the second quarter of 2012, the company received a dividend of MSEK 10 from their 50% ownership in the joint-venture company, Alfdex AB.

Exchange rate gains of MSEK 12 (1) have contributed to the earnings before tax in the third quarter of 2012, taking the cumulative net exchange rate gains for the first nine months of 2012 to MSEK 7 (-1). Interest expenses have also been reduced for the nine months period from MSEK 16 to MSEK 10.

Forward-looking information

This report contains forward-looking information in the form of statements concerning the outlook for Concentric"s operations. This information is based on the current expectations of Concentric"s management, as well as estimates and forecasts. The actual future outcome could vary significantly compared with the information provided in this report, which is forward-looking, due to such considerations as changed conditions concerning the economy, market and competition.

Basis of Preparation and Accounting policies

This interim report for the Concentric AB group is prepared in accordance with IAS 34 Interim Financial Reporting and applicable rules in the Annual Accounts Act. The report for the Parent Company is prepared in accordance with the Annual Accounts Act, Chapter 9 and applicable rules in RFR2 Accounting for legal entities.

The basis of accounting and the accounting policies adopted in preparing this interim report are consistent for all periods presented and comply with those policies stated in the 2011 Annual Report. The combined financial statements of Concentric AB Group that are included in this interim report are based on the predecessor values of the consolidated accounts of the Haldex AB Group.

As noted above, the Concentric AB Group was established during 2011. The acquisitions of the subsidiaries are common control transactions; therefore an accounting policy has been established for these business combinations as IFRS is currently silent on the treatment of those transactions.

The financial statements are combined for all periods up to 31 March 2011 and thereafter consolidated. All financial statements included in this interim report are based on the uniting of interests model (predecessor accounting).

This method requires that the assets and liabilities of the combining entities are presented using the book values for the highest level of common control (i.e. Haldex AB) for which financial statements are prepared and the transaction is presented as if it had taken place at the beginning of the earliest period presented (i.e. comparatives are restated).

All transactions and balances between entities included in the combined financial statements within this interim report are eliminated.

New accounting principles

The new or amended IFRS standards and IFRIC Interpretations, which became effective 1 January, 2012 have had no material effect on the consolidated financial statements. As of 1 January, 2013, the amendments to IAS 19, Employee benefits will become effective.

Concentric currently uses the "corridor method" of accounting, whereby unrecognised losses over the corridor of 10% are amortised in the income statement. Under this corridor method, the Group had unrecognised pension liabilities of MSEK 419 (79), as at 31 December, 2011.

The amended standard removes the option to use the corridor method and, as such, actuarial gains and losses will be recognised in full through the comprehensive income statement. Accordingly, the previously unrecognised pension liabilities will be recorded on the Group"s balance sheet, together with a corresponding deferred tax asset. In addition, the service cost and net interest recognised in the profit and loss account will also be affected by the proposed changes.

Further information on the impact of the proposed amendments to IAS 19 is available in the 2011 Annual Report.

Other new accounting principles applicable from 2013 are considered to have less impact for Concentric and are therefore only reported in the 2011 Annual Report.

Future reporting dates

Interim Report January-December 2012	19 February, 2013
Annual Report January-December 2012	3 April, 2013
AGM & Interim Report January-March 2013	24 April, 2013

Stockholm, 18 October, 2012 Concentric AB (publ)

David Woolley

President and CEO

For further information, please contact:

David Woolley (President and CEO), David Bessant (CFO), or Lena Olofsdotter (SVP Corporate Communications), at Tel: +44 121 445 6545

E-mail: info@concentricab.com

Corporate Registration Number 556828-4995

This Interim Report has not been audited.

Consolidated Income Statement, in summary 1)

	Jul-Sep		Jan-Sep		Oct 2011 -	Full year
Amounts in MSEK	2012	2011	2012	2011	Sep 2012	2011
Net sales	492	593	1,698	1,706	2,275	2,283
Cost of goods sold	-362	-428	-1,237	-1,243	-1,647	-1,653
Gross income	130	165	461	463	628	630
Selling expenses	-16	-23	-57	-66	-82	-91
Administrative expenses	-38	-33	-119	-117	-153	-151
Product development expenses	-16	-23	-55	-51	-81	-77
Other operating income and expenses	6	-3	-3	-28	-5	-30
Operating income	66	83	227	201	307	281
Financial income and expense	-5	-4	-22	-27	-25	-30
Earnings before tax	61	79	205	174	282	251
Taxes	-16	-27	-62	-58	-79	-75
Net income for the period	45	52	143	116	203	176
Earnings per share before and after dilution, SEK 2)	1.01	1.19	3.24	2.63	4.59	3.98
Average number of shares (000) 2)	44,036	44,216	44,156	44,216	44,171	44,216

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. For further information see the section "Basis of preparation and Accounting Policies"

Consolidated statement of comprehensive income 1)

	Jul-Sep		Jan-Sep		Oct 2011 -	Full year
Amounts in MSEK	2012	2011	2012	2011	Sep 2012	2011
Net income for the period	45	52	143	116	203	176
Other comprehensive income
Foreign currency translation difference	-41	68	-35	6	-35	6
Total other comprehensive income	-41	68	-35	6	-35	6
Total comprehensive income	4	120	108	122	168	182

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies" section.

Consolidated Balance Sheet, in summary 1)

	30 Sep	30 Sep	31 Dec
Amounts in MSEK	2012	2011	2011
Goodwill	485	500	501
Other intangible fixed assets	351	405	389
Tangible fixed assets	178	193	185
Deferred tax assets	24	13	24
Long-term receivables	5	6	6
Total fixed assets	1,043	1,117	1,105
Inventories	176	214	190
Current receivables	279	353	303
Cash and cash equivalents	212	128	183
Total current assets	667	695	676
Assets held for sale	-	-	5
Total assets	1,710	1,812	1,786
Total Shareholders' equity	944	876	936
Pensions and similar obligations	103	112	103
Deferred tax liabilities	85	78	96
Long-term interest-bearing liabilities	175	175	175
Other long-term liabilities	7	8	8
Total long-term liabilities	370	373	382
Short-term interest-bearing liabilities	12	61	18
Other current liabilities	384	502	450
Total current liabilities	396	563	468
Total liabilities and shareholders' equity	1,710	1,812	1,786

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies" section.

Consolidated changes in shareholders' equity, in summary 1)

	30 Sep	30 Sep	31 Dec
Amounts in MSEK	2012	2011	2011
Opening balance	936	699	699
Net income for the period	143	116	176
Other comprehensive income	-35	6	6
Total comprehensive income	108	122	182
Shareholder´s contribution	-	55	55
Dividend	-88	-	-
Buy-back own shares	-12	-	-
Closing balance	944	876	936

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies" section.

Consolidated cash flow statement, in summary 1)

	Jul-Sep		Jan-Sept		Oct 2011 -	Full year
Amounts in MSEK	2012	2011	2012	2011	Sep 2012	2011
Operating income	66	83	227	201	307	281
Reversal of depreciation and amortization	22	27	69	62	97	90
Reversal of non-cash one-off items affecting comparability	-3	-	9	-	9	-
Interest paid	-3	-5	-10	-17	-11	-18
Taxes paid	-31	-35	-86	-77	-102	-93
Cash flow from operating activities before changes in working capital	51	70	209	169	300	260
Change in working capital	10	-15	-19	-47	-5	-33
Cash flow from operating activities	61	55	190	122	295	227
Net investments	-9	-9	-31	-35	-46	-50
Cash flow from investing activities	-9	-9	-31	-35	-46	-50
Capital contribution	-	-	-	50	-	50
Dividend	-	-	-88	-	-88	-
Buy-Back Own Shares	-12	-	-12	-	-12	-
New loans	-	-	-	275	-	275
Repayment of loans	-1	-51	-5	-482	-48	-525
Other financing activities	-9	4	-23	-56	-15	-48
Cash flow from financing activities	-22	-47	-128	-213	-163	-248
Cash flow for the period	30	-1	31	-126	86	-71
Cash and bank assets, opening balance	183	128	183	257	128	257
Exchange-rate difference in cash and bank assets	-1	1	-2	-3	-2	-3
Cash and bank assets, closing balance	212	128	212	128	212	183

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies" section.

Data per Share

	Jul-Sep		Jan-Sept		Oct 2011 -	Full year
	2012	2011	2012	2011	Sep 2012	2011
Earnings per share, SEK	1.01	1.19	3.24	2.63	4.59	3.98
Equity per share, SEK	21.47	19.81	21.47	19.81	21.47	21.16
Cash-flow from current operations per share, SEK	1.39	1.24	4.30	2.76	6.68	5.13
Average No. of shares (000's)	44,036	44,216	44,156	44,216	44,171	44,216
Number of shares at period-end (000's)	43,966	44,216	43,966	44,216	43,966	44,216

Key figures

	Jul-Sep		Jan-Sep		Oct 2011 -	Full year
	2012	2011	2012	2011	Sep 2012	2011
Sales growth, constant currency, %	-18	20	-4	30	n/a	25
Sales growth, %	-17	10	0	17	2	16
EBITDA margin before items affecting comparability, %	17.3	18.5	17.9	16.8	18.1	17.3
EBITDA margin, %	18.0	18.5	17.4	15.4	17.8	16.3
Operating margin before items affecting comparability, %	12.7	14.1	13.9	13.0	13.9	13.4
Operating margin, %	13.4	14.1	13.4	11.8	13.5	12.3
Capital Employed, MSEK	1,234	1,223	1,234	1,223	1,234	1,232
ROCE before items affecting comparability, %1)	25.7	22.9	25.7	22.9	25.7	25.0
ROCE, %1)	25.0	21.0	25.0	21.0	25.0	23.1
ROE, %	21.7	22.2	21.7	22.2	21.7	22.1
Working Capital, SEK m	72	61	72	61	72	42
Working capital as a % of annual sales 2)	3.1	2.9	3.1	2.9	3.1	1.9
Net Debt, SEK m	78	220	78	220	78	114
Net debt/Equity ratio, %	8	25	8	25	8	12
Investments	14	10	36	35	51	50
R&D, %	3.3	3.8	3.3	3.0	3.6	3.4
Number of employees, average	1,117	1,202	1,157	1,177	1,166	1,179

1) The Return on capital employed, ROCE, has been calculated on a rolling 12 month basis

2) Annual sales calculated on a rolling 12 month basis

3) Average number of employees has been calculated as full time equivalent. The method used to calculate the average number pf employees has changed as of quarter 2, 2011 and therefore the comparable figures have also been changed.

Consolidated income statement in summary, by type of cost 1)

	Jul-Sep		Jan-Sep		Oct 2011 -	Full year
Amounts in MSEK	2012	2011	2012	2011	Sep 2012	2011
Net sales	492	593	1,698	1,706	2,275	2,283
Direct material costs	-251	-303	-876	-879	-1,166	-1,169
Personnel costs	-113	-122	-375	-357	-499	-481
Depreciation, amortization and impaiment losses	-22	-26	-69	-62	-97	-90
Other operating income and expenses	-40	-59	-151	-207	-206	-262
Operating income	66	83	227	201	307	281
Financial income and expence	-5	-4	-22	-27	-25	-30
Earnings before tax	61	79	205	174	282	251
Taxes	-16	-27	-62	-58	-79	-75
Net income for the period	45	52	143	116	203	176

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies" section.

Consolidated Income Statement in summary, per quarter 1)

	2012	2012	2012	2011	2011	2011	2011	2010
Amounts in MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Net sales	492	596	610	577	593	559	554	520
Cost of goods sold	-362	-432	-443	-410	-428	-405	-410	-401
Gross income	130	164	167	167	165	154	144	119
Selling expenses	-16	-21	-20	-25	-23	-24	-19	-14
Administrative expenses	-38	-41	-40	-34	-33	-42	-42	-34
Product development expenses	-16	-19	-20	-26	-23	-13	-14	-16
Other operating income and expenses	6	-4	-5	-2	-3	-15	-10	-2
Operating income	66	79	82	80	83	60	58	53
Financial income and expense	-5	-9	-8	-3	-4	-11	-12	-13
Earnings before tax	61	70	74	77	79	49	46	40
Taxes	-16	-23	-23	-17	-27	-16	-15	8
Net income for the period	45	47	51	60	52	33	31	48
of which minority interests	-	-	-	-	-	-	-	-

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies" section.

Key figures by quarter

	2012	2012	2012	2011	2011	2011	2011	2010
	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Earnings per share, SEK	1.01	1.07	1.16	1.35	1.19	0.74	0.70	1.09
Operating margin, %	13.4	13.3	13.4	13.9	14.1	10.8	10.4	10.2
ROCE, % 1)	25.0	26.0	24.6	23.1	21.0	19.2	14.4	8.8
ROE, %	21.7	23.5	23.1	22.1	22.2	17.7	14.0	5.2
Equity per share, SEK	21.47	21.54	21.83	21.16	19.80	17.09	16.32	15.80
Cash-flow from current operations per share, SEK	1.39	1.20	1.72	2.37	1.24	0.84	0.68	1.47
Investments	14	13	9	15	10	12	13	11
R&D, %	3.3	3.2	3.3	4.5	3.8	2.5	2.6	3.1
Number of employees, average	1,117	1,180	1,184	1,189	1,202	1,183	1,152	1,168

1) The Return on capital employed, ROCE, has been calculated on a rolling 12 month basis

Segment reporting

	2012	2012	2012	2011	2011	2011	2011	2010
Amounts in MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Americas
Net sales - external	287	344	342	314	329	305	290	265
Net sales - total 1)	289	346	345	317	331	308	293	n/a
Operating income	33	42	43	33	36	32	30	27
Operating margin on external sales, %	11.7	12.2	12.5	10.6	11.1	10.6	10.2	10.3
Operating margin on total sales, %	11.6	12.2	12.4	10.5	11.1	10.5	10.1	n/a
Assets	549	621	599	631	681	636	687	723
Liabilities	225	245	258	266	281	280	270	295
Capital employed	370	425	385	418	446	401	459	472
ROCE, % 2)	40.6	36.1	37.3	31.2	28.2	24.2	19.1	13.1
Net investments	1	4	-	3	3	4	2	-3
Depreciation, amortization and impairment losses	12	12	11	17	15	7	7	9
Number of employees, average 3)	380	402	416	417	426	419	404	425
Europe & RoW
Net sales - external	205	252	268	263	264	254	264	256
Net sales - total 1)	228	286	300	293	299	290	293	n/a
Operating income	33	37	39	47	47	40	33	26
Operating margin on external sales, %	16.0	14.7	14.6	17.8	17.8	15.7	12.5	10.0
Operating margin on total sales, %	14.3	12.9	13.1	16.0	15.7	13.7	11.2	n/a
Assets	996	1,034	1,044	1,039	1,058	999	1,126	1,156
Liabilities	345	392	401	438	451	421	438	523
Capital employed	721	721	716	718	725	688	800	813
ROCE, % 2)	21.8	23.8	24.3	23.4	20.0	20.2	11.5	5.7
Net investments	13	9	9	12	7	8	11	14
Depreciation, amortization and impairment losses	11	11	12	11	11	11	11	11
Number of employees, average 3)	737	778	768	772	776	764	747	743
Not broken down by segments
Elimination of inter-segmental sales	-25	-36	-35	-33	-37	-39	-32	n/a
Operating loss	0	0	0	0	0	-12	-5	-
Assets	165	124	172	116	73	81	3	5
Liabilities	197	191	191	146	204	260	387	368
Group
Net sales	492	596	610	577	593	559	554	520
Operating income	66	79	82	80	83	60	58	53
Operating margin, %	13.4	13.3	13.4	13.9	14.1	10.8	10.4	10.2
Assets	1,710	1,780	1,815	1,786	1,812	1,716	1,817	1,885
Liabilities	766	828	850	850	936	960	1,095	1,186
Capital employed	1,234	1,254	1,257	1,232	1,223	1,153	1,234	1,264
ROCE, % 2)	25.0	26.0	24.6	23.1	21.0	19.2	14.4	8.8
Net investments	14	13	9	15	10	12	13	11
Depreciation, amortization and impairment	23	23	23	28	26	18	18	20
losses Number of employees, average 3)	1,117	1,180	1,184	1,189	1,202	1,183	1,152	1,168

1) Total Net sales, includes both external and internal net sales. No figures available for the quarters 2010.

2) The Return on capital employed, ROCE, has been calculated on a rolling 12 month basis

3) Average number of employees has been calculated as full time equivalent. The method used to calculate the average number pf employees has changed as of quarter 2, 2011 and therefore the comparable figures have also been changed.

Operating income per operating segment

	2012	2012	2012	2011	2011	2011	2011	2010
Amounts in MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Americas	33	42	43	33	36	32	30	27
Europe & RoW	33	37	39	47	47	40	33	26
Unallocated 1)	0	0	0	-	0	-12	-5	-
Total operating income	66	79	82	80	83	60	58	53
Financial net	-5	-9	-8	-3	-4	-11	-12	-13
Earnings before tax	61	70	74	77	79	49	46	40

1) The unallocated costs incurred during 2011 of MSEK 17 m relate to one-off advisor costs associated with the de-merger from Haldex AB.

Sales by customer location - geographic area

	2012	2012	2012	2011	2011	2011	2011	2010
Amounts in MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
USA	272	327	330	308	323	291	288	267
Germany	70	82	83	86	80	77	85	75
UK	38	49	53	55	53	47	52	49
Sweden	25	34	37	28	28	38	37	39
Other	87	104	107	100	109	106	92	90
Total Group	492	596	610	577	593	559	554	520

Tangible assets by operating location

	2012	2012	2012	2011	2011	2011	2011	2010
Amounts in MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
USA	62	69	66	73	83	78	78	91
Germany	33	36	35	36	36	43	38	41
UK	38	33	32	31	32	31	31	31
Sweden	15	15	16	16	15	14	14	17
Other	30	29	30	29	27	19	23	20
Total Group	178	182	179	185	193	185	184	200

Parent Company's income statement, in summary

	Jul-Sep		Jan-Sep		Oct 2011 -	Full year
Amounts in MSEK	2012	2011	2012	2011	Sep 2012	2011
Net sales	6	-	16	-	33	17
Operating costs	-2	-4	-9	-4	-23	-18
Other operating expenses	-	-	-	-21	4	-17
Operating income/loss	4	-4	7	-25	14	-18
Income from shares in subsidiaries	-	-	-	-	8	8
Income from shares in associated companies	0	-	10	-	10	-
Other financial income and expense	10	-2	2	-13	0	-15
Earnings/loss before tax	14	-6	19	-38	32	-25
Taxes	-1	1	-2	10	-5	7
Net income/loss for the period 1)	13	-5	17	-28	27	-18

1) Total Comprehensive income for the Parent Company is the same as Net income/loss for the period.

Parent Company's balance sheet, in summary

	30 Sep	30 Sep	31 Dec
Amounts in MSEK	2012	2011	2011
Shares in subsidiaries	937	937	937
Shares in associated companies	10	10	10
Long-term loans receivable from subsidiaries	101	120	103
Deferred tax assets	4	10	7
Total fixed assets	1,052	1,077	1,057
Current receivables	1	9	3
Short-term receivables from subsidiaries	16	16	1
Cash and cash equivalents	158	44	126
Total current assets	175	69	130
Total assets	1,227	1,146	1,187
Total Shareholders' equity	579	652	662
Long-term loans	175	175	175
Total long-term liabilities	175	175	175
Short-term loans	-	50	-
Short-term loans payable to subsidiaries	466	261	340
Other current liabilities	7	8	10
Total current liabilities	473	319	350
Total liabilities and shareholders' equity	1,227	1,146	1,187

Parent Company's changes in shareholders' equity, in summary

	30 Sep	30 Sep	31 Dec
Amounts in MSEK	2012	2011	2011
Opening balance	662	343	343
Total comprehensive income 1)	17	-28	-18
Dividend	-88	-	-
Buy-back own shares	-12	-	-
Shareholder's Contribution (from Haldex AB)	-	337	337
Closing balance	579	652	662

1) Total Comprehensive income for the Parent Company is the same as Net income/loss for the period.

Definitions
Americas	Americas operating segment comprising the Group"s USA operations
Dividend yield	Dividend divided by market price at year end
Capital employed	Total assets less non-interest bearing liabilities
EBIT or Operating income	Earnings before interest and taxes
EBIT multiple	Market value at year end plus net debt divided by EBIT
EBIT or Operating margin	Operating income as a percentage of net sales
EPS	Earnings per share, net income divided by the average number of shares
Europe & RoW	Europe and the rest of the world operating segment comprising the Group"s operations in Europe, India and China
Gearing	Ratio of net debt to equity
Gross margin	Net sales less cost of goods sold, as a percentage of net sales
Net debt	Total interest-bearing liabilities less liquid finds
Net investments in fixed assets	Fixed asset additions net of fixed asset disposals and retirements
OEMs	Original Equipment Manufacturers
Operating income before items affecting comparability	Operating income adjusted for restructuring and other specified one-off items
ROCE	Return on capital employed; operating income plus interest income as a percentage of the average capital employed over a rolling 12 months
P/E ratio	Market value at year-end divided by net earnings
Payout ratio	Dividend divided by EPS
Sales growth, constant currency	Growth rate based on sales restated at prior year foreign exchange rates
Working capital	Current assets excluding cash, less non-interest-bearing current liabilities