Concentric — Interim / Quarterly Report 2012

Apr 26, 2012

CONCENTRIC INTERIM REPORT JANUARY – MARCH 2012

First quarter 2012: Concentric continues to grow faster than the market with sustained margins and strong cash flow

• Year on year sales growth of 10% to MSEK 610 (554) during Q1 2012 (8% in constant currencies).
• Average sales per working day sustained increases in the Americas have offset slightly lower activity experienced in Europe and the Rest of the World.
• EBIT and EBIT margin for Q1 2012 was MSEK 82 (58) and 13.4% (10.4) respectively. Adjusting for pension charges and one-time de-merger costs, underlying EBIT and EBIT margin was MSEK 88 (66) and 14.4% (11.9) respectively.
• Earnings after tax were MSEK 51 (31) EPS of SEK 1.16 (0.70). Adjusting for post-tax impact of pension charges and one-time de-merger costs, EPS was SEK 1.25 (0.83).
• Cash flow from operating activities was strong in Q1 2012, amounting to MSEK 76 (30).
• The Group's net debt was MSEK 57 (248) at 31 March 2012 reduction of MSEK 57 derived primarily from operating cash flows.

	2012	2011	2012/2011	2011	Change 2012/2011
Amounts in MSEK	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec	Jan-Mar
Net sales	610	554	2,339	2,283	10%
Operating income	82	58	305	281	24
Earnings before tax	74	46	279	251	28
Earnings after tax	51	31	196	176	20
Operating margin, %	13.4	10.4	13.1	12.3	3.0
Return on capital employed, % 1)	24.6	14.4	24.6	23.1	10.2
Return on equity, % 2)	23.1	14.0	23.1	22.1	9.1
Earnings per share, SEK 3)	1.16	0.70	4.44	3.98	0.46

1) The quarterly 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.

3) Earnings per share is based on the current number of shares in the company of 44,215,900.

President and CEO David Woolley comments on the first quarter 2012:

"Concentric's strong performance in 2011 was sustained in the first quarter of 2012, and I am particularly pleased that Concentric continues to grow faster than the market. We achieved sales growth of 8% in constant currencies for the first quarter 2012 compared with the same period last year, well above the 1% blended market growth rate. This is the fifth consequtive quarter we have achieved above market growth.

This growth was also achieved without compromising our working capital and cost disciplines, resulting in strong cash flow and margins. Adjusting for pension costs, Concentric recorded an underlying EBIT margin of 14.4% for the quarter and cash flow from operating activities increased to 76 million.

Looking forward, orders received during the quarter indicate that the activity levels will also be sustained into the second quarter of 2012, with a continuing trend of stronger demand in North America compared to Europe. The blended market growth rate for full year 2012 based on the latest available data is forecast to be 5%, applying our mix of sales by end-market and customer location. Our ambition remains to grow faster than the market.

We firmly believe that our geographical spread and four distinct end-customer segments, together with the flexibility we have in our operations through our Business Excellence program, make Concentric very well positioned to tackle any challenges in 2012.

We continue to see great opportunities for long-term growth by providing value to our customers through our leading technology addressing the key drivers in our market niches, such as the forthcoming changes in emissions legislation and increased focus on reducing fuel consumption."

Key business events – first quarter 2012

• The emerging trend from the fourth quarter of 2011 of higher demand in the US compared to Europe has continued into the first quarter of 2012. Market indices highlight year on year growth across most North American end-markets. Conversely, with the exception of the hydraulic lift trucks market, most European end-markets are down slightly year on year for the first quarter 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 value for the joint venture of at least SEK 500 million.
• During the first quarter, 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.

Concentric

	2012	2011	2012/2011	2011	Change 2012/2011
Amounts in MSEK	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec	Jan-Mar
Net sales	610	554	2,339	2,283	10%
Operating income	82	58	305	281	24
Earnings before tax	74	46	279	251	28
Earnings after tax	51	31	196	176	20
Operating margin, %	13.4	10.4	13.1	12.3	3.0
Return on capital employed ("ROCE"), % 1)	24.6	14.4	24.6	23.1	10.2
Return on equity ("ROE"), % 2)	23.1	14.0	23.1	22.1	9.1
Earnings per share, SEK 3)	1.16	0.70	4.44	3.98	0,46

1) The quarterly 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.

3) Earnings per share is based on the current number of shares in the company of 44,215,900.

Net sales per operating segment & geographic area

		Jan-Mar		Currency
Amounts in MSEK	2012	2011	Nominal	adjusted
Net sales by operating segment
Americas – external	342	290	18%	13%
Europe and the RoW - external	268	264	2%	1%
Group	610	554	10%	8%
Net sales by customer location - geographic area
USA	330	288	15%	10%
Germany	83	85	-2%	-2%
UK	53	52	4%	1%
Sweden	37	37	0%	0%
Other	107	92	15%	14%
Group	610	554	10%	8%

Net sales and earnings – first quarter 2012

Sales increased by 10 % to MSEK 610 (554) during the first quarter 2012 compared to the same quarter 2011. Sales growth, adjusted for any acquisitions or divestments and stated in constant currencies ("like for like) was 8% compared with the corresponding period in the preceding year. The Group's average sales per working day in the first quarter of 2012 was MSEK 9.4, slightly above the activity levels experienced in the second half of 2011.

Operating income amounted to MSEK 82 (58) and the operating margin was 13.4% (10.4). This year on year improvement in operating income reflects a strong contribution from the higher sales as well as effective cost management through the Concentric Business Excellence program.

Reported operating income included the following items affecting comparability:

• Under the current 'corridor approach' for pension accounting, a charge of MSEK 6 (nil) in respect of previously unrecognised actuarial losses were recorded in the first quarter result for 2012; and
• One-time costs totalling MSEK 8 associated with the de-merger were included in the first quarter result in 2011.

Adjusting for these items, the operating income and operating margin were MSEK 88 (66) and 14.4% (11.9) respectively.

Consolidated income before taxation amounted to MSEK 74 (46). Earnings after taxation amounted to MSEK 51 (31).Earnings per share amounted to SEK 1.16 (0.70).After adjusting for the post-tax impact of items affecting comparability noted above, the earnings per share was SEK 1.25 (0.83).

Taxes

The Group's tax expenses for the first quarter of 2012 amounted to MSEK 23 (15), equal to an effective annual tax rate of 30% (33%) for the period. The increased tax expenses correspond to the higher income before taxation for the period.

Cash flow

Cash flow from operating activities for the first quarter remained strong and amounted to MSEK 76 (30), despite the pressures of strong sales growth.

Investments

The Group's net investments for the first quarter totaled MSEK 9 (13), of which capitalized development costs accounted for MSEK 1 (1).

Financial position

As at 31 March, the Group's net debt was MSEK 57 (248), comprising loans and corporate bonds of MSEK 189 (405) and pension liabilities of MSEK 103 (116), net of cash amounting to MSEK 235 (273).

Shareholders' equity amounted to MSEK 965 (722), resulting in a gearing (debt/equity) ratio of 6% (34).

Net financial expenses incurred for the first quarter amounted to MSEK 8 (12), comprising interest on loans and commission relating to commitments of unutilized credit facilities of MSEK 3 (12) and net financial expenses in respect of pension liabilities of MSEK 5 (nil).

Segment reporting

The Americas segment comprises the Group's operations in the USA. The Europe & RoW segment comprises 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

	2012	2011	2012/2011	2011	Change 2012/2011
Amounts in MSEK	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec	Jan-Mar
Net sales - external	342	290	1,290	1,238	18%
Net sales - total	345	293	1,301	1,249	18%
Operating income	43	30	144	131	13
Operating margin on external sales, %	12.5	10.2	11.1	10.6	2.3
Operating margin on total sales, %	12.4	10.1	11.1	10.5	2.3
Return on capital employed, % 1)	37.3	19.1	37.3	31.2	18.2

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

Total sales for the first quarter amounted to MSEK 345 (293). Total sales growth, like for like was 13% in the first quarter compared with the corresponding period in the preceding year. Average total sales per working day was MSEK 5.4 during the first quarter, in line with the fourth quarter in 2011.

Operating income and operating margin based on total sales for the first quarter of 2012 amounted to MSEK 43 (30) and 12.4% (10.1) respectively. 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.

	2012	2011	2012/2011	2011	Change 2012/2011
Amounts in MSEK	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec	Jan-Mar
Net sales - external	268	264	1,049	1,045	2%
Net sales - total	300	293	1,182	1,175	2%
Operating income	39	33	173	167	6
Operating margin on external sales, %	14.6	12.5	16.6	15.9	2.1
Operating margin on total sales, %	13.1	11.2	14.6	14.2	2.3
Return on capital employed, % 1)	24.3	11.5	24.3	23.4	12.8

Europe & RoW

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

Total sales for the first quarter amounted to MSEK 300 (293). Total sales growth, like for like was 2% in the first quarter compared with the corresponding period in the preceding year. However, the average total sales per working day was MSEK 4.5, down -3% on the fourth quarter in 2011.

Operating income and operating margin based on total sales for the first quarter of 2012 amounted to MSEK 39 (33) and 13.1% (11.2) respectively. 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.

Market

The emerging trend from the fourth quarter of 2011 of higher demand in the US compared to Europe has continued into the first quarter of 2012. Market indices highlight year on year growth across most North American end-markets. Conversely, with the exception of the hydraulic lift trucks market, most European end-markets are down slightly year on year for the first quarter of 2012.

Overall, market indices suggest a year-on-year increase of production rates for the first quarter, blended to the Group's end-market and regions, of approximately +1%. This compares with an actual year on year increase in Concentric's sales for the first quarter of 2012 of +8% in constant currencies. Market indices suggest a full year-on-year increase of production rates for 2012, blended to the Group's end-markets and regions, of +5%.

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.

	Q1 2012 vs 2011			FY 2012 vs 2011
	North America	Europe	China/ India	North America	Europe	China/ India
Agricultural machinery	0%	-3%	-8%	+4%	+3%	+12%
Construction equipment	+8%	-4%	-3%	+8%	0%	+18%
Trucks	+3%	-4%	-21%	+8%	+2%	-5%
Industrial Applications	+6%	+1%	-10%	+4%	+4%	+9%

North American end-markets continue to grow

• The off-highway end-markets all continued to show growth in Q1 2012, with Construction equipment leading the way, although this market has been the slowest to recover from the financial crisis in 2008/9, i.e. the construction market is starting from a pretty low base.
• The on-highway truck market continue to show growth after a very strong recovery in 2011.

European end-markets have softened slightly

• Most end-markets are weaker in Q1 2012 but there is no indication of a significant downturn.

Slow start for emerging end-markets but expected to improve for the full year 2012

• Q1 2012 was relatively weak, even after adjusting for available working days, with the onhighway truck market hardest hit.
• Strong growth is anticipated in China and India for all off-highway end-markets during 2012.

Employees

There were 1,219 (1,191) employees at the close of the period.

Significant risks and uncertainties

There are no changes in the significant risks and uncertainties for Concentric AB compared with those as presented in the 2011 Annual Report. A fuller description of these risk factors is provided on pages 31-34 (http://www.concentricab.com/_downloads/AGM-2012/Concentric%20AR%202011.pdf).

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.

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 and related parties that had a material impact on the company's financial position and results.

Acquisitions and divestments

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

Dividends

The Board of Directors proposal for an ordinary dividend of SEK 2.00 per share for the 2011 fiscal year was approved by the shareholders at the Annual General Meeting on 19th April 2012. The record date for this dividend was set to 24 April 2011, and the dividend is expected to be distributed by Euroclear Sweden AB on 27 April 2011.

Parent Company

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

Net sales and earnings after tax for the first quarter amounted to MSEK 5 (nil) and a profit of MSEK 3 (loss -9) respectively.

Events after the balance-sheet date

There were no post balance sheet events to report.

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 the Swedish Financial Reporting Board's RFR 1 Supplementary Accounting Rules for Groups and for the Parent Company with RFR 2 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 and 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 in 2013

Assuming the proposed amendments to IAS 19, Employee benefits, are endorsed by the European Union, as expected in the second quarter of 2012, this new standard will become effective 1 January, 2013.

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

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-June 2012	July 19, 2012
Interim Report January-September 2012	October 18, 2012
Full Year Report January-December 2012	February, 2013

Stockholm, April 26, 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 1)

	Jan - Mar		Apr 2011	Full-year
Amounts in MSEK	2012	2011	- Mar 2012	2011
Net sales	610	554	2,339	2,283
Cost of goods sold	-443	-410	-1,686	-1,653
Gross income	167	144	653	630
Selling expenses	-20	-19	-92	-91
Administrative expenses	-40	-42	-149	-151
Product development expenses	-20	-15	-82	-77
Other operating income and expenses	-5	-10	-25	-30
Operating income	82	58	305	281
Financial income and expense	-8	-12	-26	-30
Earnings before tax	74	46	279	251
Taxes	-23	-15	-83	-75
Net income for the period	51	31	196	176
Earnings per share before and after dilution, SEK 2)	1.16	0.70	4.44	3.98
Average number of shares (000) 2)	44,216	44,216	44,216	44,216

1) All figures from 1 April 2011 are consolidated. Figures for earlier periods are combined. See "Basis of preparation and Accounting Policies". 2) Earnings per share is based on the current number of shares in the company.

Consolidated statement of comprehensive income 1)

	Jan - Mar		Apr 2011	Full Year
Amounts in MSEK	2012	2011	- Mar 2012	2011
Net income for the period Other comprehensive income/(loss)	51	31	196	176
Foreign currency translation difference	-22	-58	42	6
Total other comprehensive income/(loss)	-22	-58	42	6
Total comprehensive income/(loss)	29	-27	238	182

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

Consolidated Balance Sheet 1)

	Mar 31	Mar 31	Dec 31
Amounts in MSEK	2012	2011	2011
Goodwill	491	470	501
Other intangible fixed assets	370	405	389
Tangible fixed assets	179	184	185
Deferred tax assets	23	-	24
Financial fixed assets	6	7	6
Total fixed assets	1,069	1,066	1,105
Inventories	193	186	190
Current receivables	312	290	302
Derivative instruments	1	1	1
Cash and cash equivalents	235	273	183
Total current assets	741	750	676
Assets held for sale	5	-	5
Total assets	1,815	1,816	1,786
Total Shareholders' equity	965	722	936
Pensions and similar obligations	103	116	103
Deferred tax liabilities	90	60	96
Long-term interest-bearing liabilities 2)	175	-	175
Other long-term liabilities	8	8	8
Total long-long term liabilities	376	184	382
Derivative instruments	-	1	-
Short-term interest-bearing liabilities 2)	14	405	18
Other current liabilities	460	504	450
Total current liabilities	474	910	468
Total liabilities and shareholders' equity	1,815	1,816	1,786

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

2) All Haldex AB inter-company loans have been classified as short-term interest-bearing liabilities to reflect that these have been repaid in June 2011, following the demerger from Haldex AB and the refinancing of the Concentric Group.

Consolidated changes in shareholders' equity 1)

Amounts in MSEK	Mar 31 2012	Mar 31 2011	Dec 31 2011
Opening balance	936	699	699
Total comprehensive income	29	-27	182
Net investment	-	50	55
Closing balance	965	722	936

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

Consolidated cash flow statement 1)

	Jan - Mar		Apr 2011	Full Year
Amounts in MSEK	2012	2011	- Mar 2012	2011
Operating income	82	58	305	281
Reversal of depreciation and amortization	23	18	95	90
Reversal of pension charge for unrecognized actuarial losses	6	-	6	-
Interest paid	-3	-7	-14	-18
Taxes paid	-14	-20	-87	-93
Cash flow from operating activities before changes in
working capital	94	49	305	260
Change in working capital	-18	-19	-32	-33
Cash flow from operating activities	76	30	273	227
Net investments	-9	-13	-46	-50
Cash flow from investing activities	-9	-13	-46	-50
Capital contribution	-	50	-	50
New loans	-	-	275	275
Repayment of loans	-4	-37	-492	-525
Other financing activities	-10	-	-58	-48
Cash flow from financing activities	-14	13	-275	-248
Cash flow for the period	53	30	-48	-71
Cash and bank assets, opening balance	183	257	273	257
Exchange-rate difference in cash and bank assets	-1	-14	10	-3
Cash and bank assets, closing balance	235	273	235	183

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

Key figures

2011
	- Mar 2012	2011
41	n/a	25
30	11	16
15.1	18.1	17.3
13.7	17.1	16.3
11.9	14.0	13.4
10.4	13.1	12.3
1,243	1,257	1,232
16.5	26.3	25.0
14.4	24.6	23.1
14.0	23.1	22.1
-26	45	42
-1.2	1.9	1.8
248	57	114
34	6	12
13	46	50
2.6	3.5	3.4
1,152	1,190	1,179

1) 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 of employees has changed as of quarter 2, 2011 and therefore the comparable figures have also been changed.

Share data

	Jan - Mar		Apr 2011	Full Year
	2012	2011	- Mar 2012	2011
Earnings per share, SEK 1)	1.16	0.70	4.44	3.98
Average number of shares (000) 1)	44,216	44,216	44,216	44,216
Numbers of shares at period-end (000) 1)	44,216	44,216	44,216	44,216

1) Earnings per share is based on the current number of shares in the company.

Consolidated income statement, by type of cost 1)

	Jan - Mar		Apr 2011	Full Year
Amounts in MSEK	2012	2011	- Mar 2012	2011
Net sales	610	554	2,339	2,283
Direct material costs	-315	-290	-1,194	-1,169
Personnel costs	-130	-117	-494	-481
Depreciation, amortization and impairment losses	-23	-18	-95	-90
Other operating income and expenses	-60	-71	-251	-262
Operating income	82	58	305	281
Financial income and expense	-8	-12	-26	-30
Earnings before tax	74	46	279	251
Taxes	-23	-15	-83	-75
Net income for the period	51	31	196	176

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

Consolidated quarterly report 1)

Amounts in MSEK	2012 Q1	2011 Q4	2011 Q3	2011 Q2	2011 Q1	2011 Full year
Net sales	610	577	593	559	554	2,283
Cost of goods sold	-443	-410	-428	-405	-410	-1,653
Gross income	167	167	165	154	144	630
Selling expenses	-20	-25	-23	-24	-19	-91
Administrative expenses	-40	-34	-33	-41	-42	-151
Product development expenses	-20	-26	-23	-14	-14	-77
Other operating income and expenses	-5	-2	-3	-15	-10	-30
Operating income	82	80	83	60	58	281
Financial income and expense	-8	-3	-4	-11	-12	-30
Earnings before tax	74	77	79	49	46	251
Taxes	-23	-17	-27	-16	-15	-75
Net income for the period	51	60	52	33	31	176

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

Key figures by quarter

	2012	2011	2011	2011	2011	2011
	Q1	Q4	Q3	Q2	Q1	Full year
Earnings per share, SEK	1.16	1.35	1.19	0.74	0.70	3.98
Operating margin, %	13.4	13.9	14.1	10.8	10.4	12.3
ROCE, % 1)	24.6	23.1	21.0	19.2	14.4	23.1
Investments	9	15	10	12	13	50
R&D, %	3.3	4.5	3.8	2.5	2.6	3.4
Number of employees, average 2)	1,184	1,189	1,202	1,183	1,152	1,179

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

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

Segment reporting

	2012	2011	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Full year
Americas
Net sales - external	342	314	329	305	290	1,238
Net sales - total	345	317	331	308	293	1,249
Operating income	43	33	36	32	30	131
Operating margin on external sales, %	12.5	10.6	11.1	10.6	10.2	10.6
Operating margin on total sales, %	12.4	10.5	11.1	10.5	10.1	10.5
Assets	599	631	681	636	687	631
Liabilities	258	266	281	280	270	266
Capital employed	385	418	446	401	459	418
ROCE, % 1)	37.3	31.2	28.2	24.2	19.1	31.2
Net investments	-	3	3	4	2	12
Depreciation, amortization and impairment losses	11	17	15	7	7	46
Number of employees, average 2)	416	417	426	419	404	416
Europe & RoW
Net sales - external	268	263	264	254	264	1,045
Net sales - total	300	293	299	290	293	1,175
Operating income	39	47	47	40	33	167
Operating margin on external sales, %	14.6	17.8	17.8	15.7	12.5	15.9
Operating margin on total sales, %	13.1	16.0	15.7	13.7	11.2	14.2
Assets	1,044	1,039	1,058	999	1,126	1,039
Liabilities	401	438	451	421	438	438
Capital employed	716	718	725	688	800	718
ROCE, % 1)	24.3	23.4	20.0	20.2	11.5	24.2
Net investments	9	12	7	8	11	38
Depreciation, amortization and impairment losses	12	11	11	11	11	44
Number of employees, average 2)	768	772	776	764	747	763
Not broken down by segments
Elimination of inter-segmental sales	-35	-33	-37	-39	-32	-141
Operating loss	-	-	-	-12	-5	-17
Assets	172	116	73	81	3	139
Liabilities	191	146	204	260	387	146
Group
Net sales	610	577	593	559	554	2,283
Operating income	82	80	83	60	58	281
Operating margin, %	13.4	13.9	14.1	10.8	10.4	12.3
Assets	1,815	1,786	1,812	1,716	1,817	1,786
Liabilities	850	850	936	960	1,095	850
Capital employed	1,257	1,232	1,223	1,153	1,234	1,232
ROCE, % 1)	24.6	23.1	21.0	19.2	14.4	23.1
Net investments	9	15	10	12	13	50
Depreciation, amortization and impairment losses	23	28	26	18	18	90
Number of employees, average 2)	1,184	1,189	1,202	1,183	1,152	1,179

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

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

Operating income per operating segment:

	2012	2011	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Full year
Americas	43	33	36	32	30	131
Europe & RoW	39	47	47	40	33	167
Unallocated 1)	-	-	-	-12	-5	-17
Operating income	82	80	83	60	58	281
Net financial income and expense	-8	-3	-4	-11	-12	-30
Earnings before tax	74	77	79	49	46	251
Taxes	-23	-17	-27	-16	-15	-75
Net income	51	60	52	33	31	176

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

Sales by customer location - geographic area

	2012	2011	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Full year
USA	330	308	323	291	288	1,210
Germany	83	86	80	77	85	328
UK	53	55	53	47	52	207
Sweden	37	28	28	38	37	131
Other	107	100	109	106	92	407
Total Group	610	577	593	559	554	2,283

Tangible assets by operating location

	2012	2011	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Full year
USA	66	73	83	78	78	73
Germany	35	36	36	43	38	36
UK	32	31	32	31	31	31
Sweden	16	16	15	14	14	16
Other	30	29	27	19	23	29
Total Group	179	185	193	185	184	185

Parent Company's income statement

	Jan - Mar		Apr 2011	Full-year
Amounts in MSEK	2012	2011	- Mar 2012	2011
Net sales	5	-	22	17
Operating costs	-4	-	-22	-18
Other operating expenses	-	-8	-9	-17
Operating income/(loss)	1	-8	-9	-18
Income from shares in subsidiaries	-	-	8	8
Financial income and expense	3	-5	-7	-15
Income/(loss) before tax	4	-13	-8	-25
Taxes	-1	4	2	7
Net income/(loss) for the period 1)	3	-9	-6	-18

1) Total comprehensive income for Parent Company is the same as the net income/(loss) for the period

Parent Company's balance sheet

	Mar 31	Mar 31	Dec 31
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	102	-	103
Deferred tax assets	6	4	7
Total fixed assets	1,055	951	1,057
Current receivables	2	-	3
Short-term receivables from subsidiaries	11	121	1
Cash and cash equivalents	167	-	126
Total current assets	180	121	130
Total assets	1,235	1,072	1,187
Total Shareholders' equity	665	671	662
Long-term loans	175	-	175
Total long-term liabilities	175	-	175
Short-term loans to previous parent company	-	387	-
Short-term loans payable to subsidiaries	388	5	340
Other current liabilities	7	9	10
Total current liabilities	395	401	350
Total liabilities and shareholders' equity	1,235	1,072	1,187

Parent Company's changes in shareholders' equity

Amounts in MSEK	Mar 31 2012	Mar 31 2011	Dec 31 2011
Opening balance	662	343	343
Total comprehensive income	3	-9	-18
Shareholders' contribution (from Haldex AB)	-	337	337
Closing balance	665	671	662