Concentric — Interim / Quarterly Report 2013

Apr 24, 2013

First quarter of 2013: Modest sequential sales growth

• Sales for Q1 up 7% sequentially on Q4 last year in constant currency 3% increase after adjusting for more working days
• Sales for Q1 MSEK 449 (610), down 23% year-on-year in constant currency fall in demand across most end-markets and regions from last year
• EBIT and EBIT margin for Q1 MSEK 59 (89) and 13.0% (14.6) respectively 1)
• Earnings after tax for Q1 MSEK 37 (55) EPS before & after dilution SEK 0.84 (1.25) 1)
• Group's net debt and gearing ratio for Q1 MSEK 438 (466) and 69% (69) respectively includes previously unrecognised pension liabilities & associated deferred tax asset 1)

Key Figures – Group, 1)		Jan-Mar	Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	Change	2012/13	2012
Net sales	449	610	-26%	1,968	2,129
Operating income before items affecting comparability	59	89	-34%	267	297
Operating income	59	89	-34%	251	281
Earnings before tax	51	79	-35%	215	243
Net income for the period	37	55	-33%	153	171
Operating margin before items affecting comparability, %	13.0	14.6	-1.6	13.5	13.9
Operating margin, %	13.0	14.6	-1.6	12.7	13.2
Return on equity, % 2)	23.6	n/a	n/a	23.6	26.5
EPS before items affecting comparability, SEK	0.84	1.25	-0.41	3.72	4.13
EPS before and after dilution, SEK	0.84	1.25	-0.41	3.47	3.88

1) The 2012 comparative figures for EBIT, Earnings before tax, Net income for the period have been adjusted for the amendments to IAS 19, Employee benefits (see Appendix 1 for restated income statements). In addition, the 2012 comparative figures for net debt and equity have also been adjusted for the amendments to IAS 19, Employee benefits (see Appendix 2 for restated balance sheets).

2) As Return on equity is calculated on a rolling 12 months basis and 2011 has not been restated, no comparable figure has been provided.

President and CEO, David Woolley, comments on interim report for Q1 2013:

"Demand across most of our end-markets and regions appeared to stabilise during the first quarter of 2013 compared to what we experienced at the end of last year, with a reduction in both the level of customer shutdowns and the amount of de-stocking from the major OEMs. As a result, both sales and EBIT were up on a sequential quarter basis.

During the first quarter Concentric implemented new production lines for contracts secured in 2012 and continued to consolidate the Group's hydraulics business in Europe. Despite this, Concentric has maintained operating margins versus the fourth quarter 2012 at 13.0%. This continued strong performance has been achieved through effective cost management supported by the Concentric Business Excellence programme.

Cash flow from operating activities was adversely affected in the quarter by higher tax payments, restructuring expenditure and a negative working capital impact arising from the stronger than usual cash flow achieved in the fourth quarter 2012, combined with the timing of this year's Easter vacation.

Looking forward, the orders received during the quarter were again slightly above sales for the second consecutive quarter, indicating that end-customer confidence is improving.

Latest market indices suggest 2% growth in 2013 year-on-year, blended across our end-markets, based on much stronger demand in the second half of 2013. However, current customer schedules do not indicate any significant improvement in order levels yet. Our ambition remains to outperform the market through our leading technology addressed at the key market drivers, such as tougher emissions legislation and increased demand for fuel efficient solutions."

Key business events announced during 2013:

• 29-Jan-13 Martin Bradford was promoted to Senior Vice President of Americas at Concentric AB, with responsibility for the group's operations at the Rockford and Itasca facilities in Illinois, USA.
• 21-Feb-13 Concentric AB's Birmingham factory awarded certification to Investors in Excellence (IiE) standard, designed to enable organisations to excel through effective and efficient leadership, resourcing and delivery. The award forms part of Concentric's Business Excellence programme to deliver continuous improvement.
• 17-Apr-13 Variable flow oil and water pumps developed by Concentric AB have made a significant contribution to the US-funded "Supertruck" program to develop a new generation of fuelefficient heavy-duty trucks.

Concentric – Group, 1)		Jan-Mar	Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	Change	2012/13	2012
Net sales	449	610	-26%	1,968	2,129
Operating income before items affecting comparability	59	89	-34%	267	297
Operating income	59	89	-34%	251	281
Earnings before tax	51	79	-35%	215	243
Net income for the period	37	55	-33%	153	171
Operating margin before items affecting comparability, %	13.0	14.6	-1.6	13.5	13.9
Operating margin, %	13.0	14.6	-1.6	12.7	13.2
ROCE before items affecting comparability, % 2)	24.5	n/a	n/a	24.5	26.7
ROCE, % 2)	23.1	n/a	n/a	23.1	25.3

1) The 2012 comparative figures for EBIT, Earnings before tax, Net income for the period and EPS have been adjusted for the amendments to IAS 19, Employee benefits (see Appendix 1 for restated income statements).

2) As Return on capital employed is calculated on a rolling 12 months basis and 2011 has not been restated no comparable figures have been provided.

Net sales and operating income - Group

Sales for the first quarter were up 7% sequentially on the fourth quarter of 2012 in constant currency, representing an increase of 3%, after adjusting for more working days in the quarter.

Sales for the first quarter were MSEK 449 (610), down 23% year-on-year in constant currency, as demand across most end-markets and regions dropped from last year. As a result, the Group's average sales per working day in the first quarter fell year-on-year to MSEK 7.1 (9.4).

Operating income and margin for the first quarter amounted to MSEK 59 (89) and 13.0% (14.6) respectively. The comparative quarter in 2012 has been restated for the amendments to IAS 19, Employee benefits, thereby increasing the reported operating income by MSEK 7. The reduction in operating income for the first quarter of 2013 equates to a drop through rate of just 18% on the year-on-year fall in sales.

Net financial items

Net financial expenses incurred for the first quarter amounted to MSEK 8 (10), 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 5 (6). The comparative quarter in 2012 has been restated for the amendments to IAS 19, Employee benefits, thereby increasing the reported net financial expenses in respect of net pension liabilities by MSEK 2.

Accordingly, consolidated income before taxation amounted to MSEK 51 (79) for the first quarter.

Taxes

Tax expenses for the first quarter amounted to MSEK 14 (24), which is an effective annual tax rate of 28% (30%). The comparative quarter in 2012 has been restated for the amendments to IAS 19, Employee benefits, thereby increasing the reported net tax expenses by MSEK 1.

Any movement in the group's effective rate largely reflects the change in 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 quarter amounted to MSEK 37 (55).Earnings per share before and after dilution amounted to SEK 0.84 (1.25).The comparative quarter in 2012 has been restated for the amendments to IAS 19, Employee benefits, thereby increasing the reported net income by MSEK 4.

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	Jan-Mar			Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	Change	2012/13	2012
Net sales – external	226	342	-34%	1,096	1,212
Net sales – total	228	345	-34%	1,104	1,221
Operating income before items affecting comparability 1)	25	44	-44%	134	153
Operating income 1)	25	44	-44%	135	154
Operating margin before items affecting comparability, % 1,2)	10.9	12.8	-1.9	12.1	12.5
Operating margin, % 1,2)	10.9	12.8	-1.9	12.2	12.6
ROCE before items affecting comparability, % 1,3)	36.3	n/a	n/a	36.3	40.3
ROCE, % 1,3)	36.5	n/a	n/a	36.5	40.5

1) The 2012 comparative figures for EBIT have been adjusted for the amendments to IAS 19, Employee benefits. For the first quarter of 2012 this adjustment amounted to an increase in operating income of MSEK 1.

2) Operating margins are based on total sales.

3) As Return on capital employed is calculated on a rolling 12 months basis and 2011 has not been restated no comparable figure have been provided.

Net sales and operating income - Americas

Total sales for the first quarter were flat sequentially on the fourth quarter of 2012 in constant currency, representing a decrease of 5%, after adjusting for higher working days in the quarter.

Total sales in constant currency were 30% lower in the first quarter of 2013 when compared with the peak volumes experienced in the same quarter last year. First quarter volumes are down across the board with the sharpest declines experienced in medium/heavy trucks and heavy construction and mining equipment. As a result, average total sales per working day fell year-on-year to MSEK 3.7 (5.4) for the first quarter.

Operating income for the first quarter amounted to MSEK 25 (44), decreasing the operating margin based on total sales to 10.9% (12.8).

The reduction in operating income for the first quarter of 2013 equates to a drop through rate of just 16% on the year-on-year fall in sales.

Europe & RoW		Jan-Mar	Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	Change	2012/13	2012
Net sales - external	223	268	-17%	872	917
Net sales - total	247	300	-18%	974	1,027
Operating income before items affecting comparability 1)	34	45	-25%	133	144
Operating income 1)	34	45	-25%	116	127
Operating margin before items affecting comparability, % 1,2)	13.6	14.9	-1.3	13.6	14.0
Operating margin, % 1,2)	13.6	14.9	-1.3	11.9	12.4
ROCE before items affecting comparability, % 1,3)	18.4	n/a	n/a	18.4	19.6
ROCE, % 1,3)	16.0	n/a	n/a	16.0	17.3

1) The 2012 comparative figures for EBIT have been adjusted for the amendments to IAS 19, Employee benefits. For the first quarter of 2012 this adjustment amounted to an increase in operating income of MSEK 6.

• 2) Operating margins are based on total sales.
• 3) As Return on capital employed is calculated on a rolling 12 months basis and 2011 has not been restated no comparable figure have been provided

Net sales and operating income – Europe & RoW

Total sales for the first quarter were up 15% sequentially on the fourth quarter of 2012 in constant currency, representing an increase of 12%, after adjusting for higher working days in the quarter.

Total sales in constant currency were down 14% in the first quarter when compared with the same quarter last year. During the first quarter all end-markets remained relatively weak, with the sharpest declines experienced in hydraulic products for construction equipment and lift truck markets. As a result, average total sales per working day fell year-on-year to MSEK 3.9 (4.6) for the first quarter.

Operating income for the first quarter amounted to MSEK 34 (45), decreasing the operating margin based on total sales to 13.6% (14.9).

The reduction in operating income in the first quarter of 2013 equates to a drop through rate of 21% on the year-on-year fall in sales.

End-markets & Regions	Q1-13 vs. Q1-12			FY-13 vs. FY-12
	North America	Europe	China/ India	North America	Europe	China/ India
Agricultural machinery
Diesel engines	-10%	-14%	-5%	3%	2%	11%
Construction equipment
Diesel engines	-11%	-7%	-24%	5%	3%	6%
Hydraulic equipment	4%	-26%	n/a	5%	-16%	n/a
Trucks
Light vehicles	9%	n/a	n/a	16%	n/a	n/a
Medium/Heavy vehicles	-16%	-9%	-10%	1%	-5%	-1%
Industrial Applications
Other Off-highway	-9%	-5%	-14%	5%	4%	8%
Hydraulic lift trucks	-23%	-27%	n/a	2%	-5%	n/a

Market development

Based on Q1 2013 updates received from Power Systems Research, Off-Highway Research and the International Truck Association for lift trucks

The market information pertaining to diesel engines detailed above 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.

The latest market indices are more in line with Concentric's recent sales order experience of the last three quarters, namely that most end-markets are down significantly year-on-year. However, the market indices also anticipate activity levels to pick up significantly in the second half of 2013, such that modest year-onyear growth for the full year 2013 is still predicted in both North America and China.

North American end-markets

• The latest market indices report diesel engines were down across the board in all four end-markets year-on-year for the first quarter, which was more in line with the actual demand experienced by Concentric for the last three quarters. The one exception to this trend was light trucks which continued to report growth, up 9% year-on-year for the first quarter.
• Hydraulic products that are used later in the production cycle for Construction equipment still showed modest growth of 4% year-on-year for the first quarter.
• Hydraulic products used in Lift trucks were hit hardest in the quarter, down 23% year-on-year.

European end-markets

• Demand in all European sectors end-markets remains comparatively weak, with no significant change in customer demand levels.
• Hydraulic products for Construction equipment and other Off-highway Industrial applications, such as Lift trucks, were the most affected end-markets year-on-year.

Emerging end-markets

• Market indices for the first quarter were down across the board in all four end-markets year-onyear, although the Agricultural machinery and Construction equipment markets in China are showing some signs of recovery.

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 first quarter was 63 (65) for the Group, with an average of 62 (64) working days for the Americas region and 64 (65) working days for the Europe & RoW region.

Consolidated sales development	Q1-13 vs. Q1-12				FY-13 vs. FY-12
	Americas	Europe & ROW	Group	Americas	Europe & ROW	Group
Blended market rates 1)	-9%	-13%	-11%	4%	-2%	2%
Concentric actual rates 2)	-30%	-14%	-23%

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 decrease in production rates for the first quarter, blended to the Group's end-market and regions, of approximately 11%. This continues to be less than the reduction in actual demand levels experienced by Concentric, down 23% for the first quarter in constant currency.

Market indices suggest that sales for 2013, blended to the Group's end-markets and regions, will be up 2% against prior year, based on much stronger demand in the second half of the year. However, current schedules of Concentric's customers do not indicate of any significant improvement in order levels yet.

Cash flow

The cash inflow from operating activities for the first quarter was weaker than previous quarters, amounting to MSEK 6 (76), which represents SEK 0.11 (1.71) per share. The year-on-year reduction in cash flow for the first quarter may be attributed the following factors:

• lower operating income for the quarter amounting to MSEK 59 (89);
• higher tax payments for the quarter amounting to MSEK 28 (14), reflecting Concentric's new payment profile as a standalone tax group;
• restructuring expenditure in the quarter of MSEK 7 (nil) in respect of the closure reserves booked for the Skanes Fagerhult facility; and
• a negative working capital impact arising from the stronger than usual cash flow achieved in the fourth quarter 2012, combined with the timing of this year's Easter vacation.

Net investments in fixed assets

The Group's net investments in fixed assets for the first quarter were MSEK 3 (9).

Financial position

Under IAS 7, the carrying amount of financial assets and financial liabilities are considered reasonable approximations of fair value. Financial instruments carried at fair value on the balance sheet consists of derivative instruments. As of March 31, 2013 the fair value of derivative instruments that were assets was MSEK 0 (1), and the fair value of derivative instruments that were liabilities was MSEK 0 (0). These fair value measurements belong in level 2 in the fair value hierarchy.

As of 1 January, 2013, amendments to IAS 19, Employee benefits, became effective. As a result, the Group's balance sheet was restated as of 1 January 2012 onwards to reflect previously unrecognised pension liabilities, together with a corresponding deferred tax asset. Accordingly, as at 31 March, the Group's net debt was restated to MSEK 438 (466), comprising loans and corporate bonds of MSEK 184 (189) and full recognition of the Group's net pension liabilities of MSEK 522 (511), net of cash amounting to MSEK 268 (235).

Shareholders' equity was also restated to MSEK 630 (672), resulting in a gearing ratio of 69% (69).

Employees

The average number of full-time equivalents employed by the group during the first quarter of 2013 was 1,018 (1,184).

Related-party transactions

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

Descriptions of Concentric's Vision, Mission and Values, Business targets and strategies, Driving forces, Products, Market position, Value chain and Business model are all presented on pages 6-23 of the 2012 Annual Report (http://www.concentricab.com/_downloads/AGM-2013/Concentric%20AR%202012.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 30-33 of the 2012 Annual Report (http://www.concentricab.com/_downloads/AGM-2013/Concentric%20AR%202012.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

Net sales and operating income for the first quarter amounted to MSEK 6 (5) and a profit of MSEK 2 (1) respectively. The slight improvement reflects the remuneration from subsidiaries in the current period for services rendered.

The company also received a dividend of MSEK 12 (nil) in the first quarter from their 50% ownership in the joint-venture company, Alfdex AB.

The cumulative net exchange rate gains for the first quarter were MSEK nil (5). Interest expenses have been slightly reduced during the first quarter to MSEK 1 (2).

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 2012 Annual Report, except as described below.

Impact of new accounting principles

As of 1 January, 2013, amendments to IAS 19, Employee benefits became effective thereby removing the option to use the corridor method. As such, actuarial gains and losses are recognised in full in other comprehensive income. Accordingly, the Group's balance sheet has been restated as of 1 January 2012 onwards to reflect previously unrecognised pension liabilities, together with a corresponding deferred tax asset. In addition, the service cost and net interest recognized in respect of pensions in the income statement have also been restated for the changes.

As at 31 March 2012, the restatements in the balance sheet amounted to an increase in net debt of MSEK 408 and a net reduction in equity of MSEK 293. For the first quarter of 2012 the restatements in the income statement amounted to an increase in operating income of MSEK 7, an increase in earnings before tax of MSEK 5 and an increase in net income for the period of MSEK 4, resulting in an increase to the reported EPS of SEK 0.09.

See Appendices 1 and 2 to this interim report for full details of the restated consolidated income statements and balance sheets for 2012 by quarter, in summary.

Purpose of report and forward-looking information

Concentric AB (publ) is listed on NASDAQ OMX Stockholm, Mid Cap. The information in this report is of the type that Concentric is required to disclose under the Swedish Securities Market Act. The information was submitted for publication at 8.00am on 24 April, 2013. This report contains forwardlooking 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.

Annual General Meeting

The Annual General Meeting will be held on Wednesday, 24 April, 2013, at 3:00pm at the Grand Hotel in Stockholm, Sweden.

Future reporting dates

Interim Report January-June 2013	25 July, 2013
Interim Report January-September 2013	24 October, 2013

Stockholm, 24 April, 2013 Concentric AB (publ)

David Woolley

President and CEO

For further information, please contact:

David Woolley (President and CEO), David Bessant (CFO), or Lena Olofsdotter (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)

	Jan-Mar		Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	2012/13	2012
Net sales	449	610	1,968	2,129
Cost of goods sold	-330	-442	-1,453	-1,565
Gross income	119	168	515	564
Selling expenses	-16	-20	-65	-69
Administrative expenses	-28	-34	-119	-125
Product development expenses	-16	-20	-72	-76
Other operating income and expenses	-	-5	-8	-13
Operating income	59	89	251	281
Financial income and expense	-8	-10	-36	-38
Earnings before tax	51	79	215	243
Taxes	-14	-24	-62	-72
Net income for the period	37	55	153	171
Earnings per share before and after dilution, SEK	0.84	1.25	3.47	3.88
Average number of shares (000)	43,892	44,216	44,013	44,094

1) Figures for 2012 have been restated. See "Basis of preparation and Accounting Policies" section.

Consolidated statement of comprehensive income 1)

	Jan-Mar		Apr-Mar	Jan-Mar
Amounts in MSEK	2013	2012	2012/13	2012
Net income for the period	37	55	153	171
Other comprehensive income
Items that will not be reclassified to profit or loss:
Actuarial gains/losses	-	2	-60	-58
Tax on actuarial gains/losses	-	-1	9	8
Items that may be reclassified subsequently to profit or loss:
Net investment hedging	-	4	4	8
Cash-flow hedging	-2	-	-2	-
Exchange differences on translating foreign operations	-20	-21	-42	-43
Total other comprehensive income	-22	-16	-91	-85
Total comprehensive income	15	39	62	86

Consolidated Balance Sheet, in summary 1,2)

	31 Mar	31 Mar	31 Dec
Amounts in MSEK	2013	2012	2012
Goodwill	463	491	481
Other intangible fixed assets	314	370	336
Tangible fixed assets	170	179	181
Deferred tax assets	150	138	156
Long-term receivables	5	6	5
Total fixed assets	1,102	1,184	1,159
Inventories	166	193	167
Current receivables	267	318	204
Cash and cash equivalents	268	235	288
Total current assets	701	746	659
Total assets	1,803	1,930	1,818
Total Shareholders' equity	630	672	615
Pensions and similar obligations	522	511	547
Deferred tax liabilities	73	90	71
Long-term interest-bearing liabilities	175	175	175
Other long-term liabilities	4	8	4
Total long-term liabilities	774	784	797
Short-term interest-bearing liabilities	9	14	13
Other current liabilities	390	460	393
Total current liabilities	399	474	406
Total liabilities and shareholders' equity	1,803	1,930	1,818

1) Figures for 2012 have been restated. See "Basis of preparation and Accounting Policies" section.

2) The carrying amount of financial assets and financial liabilities are considered reasonable approximations of fair value. Financial instruments carried at fair value on the balance sheet consists of derivative instruments. As of March 31, 2013 the fair value of derivative instruments that were assets was MSEK 0 (1), and the fair value of derivative instruments that were liabilities was MSEK 0 (0). These fair value measurements belong in level 2 in the fair value hierarchy.

Consolidated changes in shareholders' equity, in summary 1)

	31 Mar	31 Mar	31 Dec
Amounts in MSEK	2013	2012	2012
Opening balance	943	936	936
Effect due to changes in accounting principles:
Actuarial gains/losses	-444	-419	-419
Special payroll tax in Sweden on pensions	-2	-2	-2
Changes in deferred taxes	118	118	118
Total effect due to changes in accounting principles	-328	-303	-303
Restated opening balance	615	633	633
Net income for the period	37	55	171
Other comprehensive income	-22	-16	-85
Total comprehensive income	15	39	86
Dividend	-	-	-88
Buy-back own shares	-	-	-16
Closing balance	630	672	615

Consolidated cash flow statement, in summary 1)

	Jan-Mar		Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	2012/13	2012
Operating income	59	89	251	281
Reversal of depreciation and amortization	21	23	98	100
Reversal of other items	-5	-1	-31	-27
Interest paid	-1	-3	-11	-13
Taxes paid	-28	-14	-101	-87
Cash flow from operating activities before changes in working capital	46	94	206	254
Change in working capital	-41	-18	21	44
Cash flow from operating activities	5	76	227	298
Net investments in fixed assets	-3	-9	-45	-51
Cash flow from investing activities	-3	-9	-45	-51
Dividend	-	-	-88	-88
Buy-Back Own Shares	-	-	-16	-16
Repayment of loans	-4	-4	-5	-5
Other financing activities	-15	-10	-34	-29
Cash flow from financing activities	-19	-14	-143	-138
Cash flow for the period	-17	53	39	109
Cash and bank assets, opening balance	288	183	235	183
Exchange-rate difference in cash and bank assets	-3	-1	-6	-4
Cash and bank assets, closing balance	268	235	268	288

1) Figures for 2012 have been restated. See "Basis of preparation and Accounting Policies" section.

Data per Share 1)

	Jan-Mar		Apr-Mar	Jan-Dec
	2013	2012	2012/13	2012
Earnings per share before items affecting comparability, SEK	0.84	1.25	3.72	4.13
Earnings per share before and after dilution, SEK	0.84	1.25	3.47	3.88
Equity per share, SEK	14.37	15.18	14.37	14.00
Cash-flow from current operations per share, SEK	0.11	1.71	5.17	6.76
Average No. of shares (000's)	43,892	44,216	44,013	44,094
Number of shares at period-end (000's)	43,892	44,216	43,892	43,892

Key figures

	Jan-Mar		Apr-Mar	Jan-Dec
	2013	2012	2012/13	2012
Sales growth, constant currency, %	-23	8	n/a	-9
Sales growth, %	-26	10	-16	-7
EBITDA margin before items affecting comparability, %	17.6	18.4	18.1	18.3
EBITDA margin, %	17.6	18.4	17.7	17.9
Operating margin before items affecting comparability, %	13.0	14.6	13.5	13.9
Operating margin, %	13.0	14.6	12.7	13.2
Capital Employed, MSEK	1,016	1,130	1,016	1,019
ROCE before items affecting comparability, % 2)	24.5	n/a	24.5	26.7
ROCE, % 2)	23.1	n/a	23.1	25.3
ROE, % 2)	23.6	n/a	23.6	26.5
Working Capital, MSEK	43	46	43	-23
Working capital as a % of annual sales 1)	2.2	2.0	2.2	-1.1
Net Debt, MSEK	438	466	438	446
Gearing ratio, %	69	69	69	73
Investments	3	9	45	51
R&D, %	3.6	3.3	3.6	3.5
Number of employees, average	1,018	1,184	1,093	1,131

1) Annual sales calculated on a rolling 12 month basis

2) As Return on capital employed and Return on equity are calculated on a rolling 12 months basis and 2011 has not been restated no comparable figure have been provided.

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

	Jan-Mar		Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	2012/13	2012
Net sales	449	610	1,968	2,129
Direct material costs	-229	-315	-1,025	-1,111
Personnel costs	-97	-123	-417	-443
Depreciation, amortization and impairment losses	-21	-23	-98	-100
Other operating income and expenses	-43	-60	-177	-194
Operating income	59	89	251	281
Financial income and expense	-8	-10	-36	-38
Earnings before tax	51	79	215	243
Taxes	-14	-24	-62	-72
Net income for the period	37	55	153	171

	2013	2012	2012	2012	2012	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	449	431	492	596	610	577	593	559	554
Cost of goods sold	-330	-332	-360	-431	-442	-410	-428	-405	-410
Gross income	119	99	132	165	168	167	165	154	144
Selling expenses	-16	-13	-16	-20	-20	-25	-23	-24	-19
Administrative expenses	-28	-22	-33	-35	-35	-34	-33	-42	-42
Product development expenses	-16	-21	-16	-19	-20	-26	-23	-13	-14
Other operating income and expenses	-	-10	6	-4	-5	-2	-3	-15	-10
Operating income	59	33	73	87	88	80	83	60	58
Financial income and expense	-8	-12	-6	-11	-9	-3	-4	-11	-12
Earnings before tax	51	21	67	76	79	77	79	49	46
Taxes	-14	-5	-18	-25	-24	-17	-27	-16	-15
Net income for the period	37	16	49	51	55	60	52	33	31

Consolidated Income Statement in summary, per quarter 1)

1) Figures for 2012 have been restated. See "Basis of preparation and Accounting Policies" section.

Key figures by quarter 1)

	2013	2012	2012	2012	2012	2011	2011	2011	2011
	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
EPS before and after dilution, SEK	0.84	0.37	1.10	1.16	1.25	1.35	1.19	0.74	0.70
Operating margin, %	13.0	7.5	14.9	14.5	14.6	13.9	14.1	10.8	10.4
ROCE, %	23.1	25.3	26.7	28.1	26.9	24.9	22.9	19.7	15.7
ROE, %	23.6	26.5	21.7	23.5	23.1	22.1	22.2	17.7	14.0
Equity per share, SEK	14.37	14.00	15.04	14.82	15.18	21.16	19.80	17.09	16.32
Cash-flow per share, SEK	0.11	2.46	1.39	1.20	1.72	2.37	1.24	0.84	0.68
Net investments in fixed assets	3	20	9	13	9	15	10	12	13
R&D, %	3.6	4.7	3.3	3.2	3.3	4.5	3.8	2.5	2.6
Number of employees, average	1,018	1,054	1,117	1,180	1,184	1,189	1,202	1,183	1,152

Segment reporting 1)

	2013	2012	2012	2012	2012	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Americas
Net sales - external	226	239	287	344	342	314	329	305	290
Net sales - total 2)	228	241	289	346	345	317	331	308	293
Operating income	25	31	36	43	44	33	36	32	30
Operating margin on total sales, %	226	239	287	344	342	314	329	305	290
Assets 4)	524	514	575	649	627	660	681	636	687
Liabilities 4)	271	265	287	312	324	337	281	280	270
Capital employed	349	332	364	405	389	408	451	430	392
ROCE, % 3)	36.5	40.5	37.3	36.8	34.7	31.0	29.7	23.8	22.5
Net investments in fixed assets	-	-	-4	4	-	3	3	4	2
Depreciation, amortization & impairment
losses	6	13	12	12	11	17	15	4	7
Number of employees, average	298	340	380	402	416	417	426	419	404
Europe & RoW
Net sales - external	223	192	205	252	268	263	264	254	264
Net sales - total 2)	247	213	228	286	300	293	299	290	293
Operating income	34	1	38	43	45	47	47	40	33
Operating margin on total sales, %	223	192	205	252	268	263	264	254	264
Assets 4)	1,053	1,069	1,080	1,123	1,131	1,130	1,058	999	1,126
Liabilities 4)	685	718	675	735	743	744	451	421	438
Capital employed	679	707	742	752	733	737	747	689	689
ROCE, % 3)	16.0	17.3	21.1	23.4	24.2	23.5	20.5	20.1	13.5
Net investments in fixed assets	3	20	13	9	9	12	7	8	11
Depreciation, amortization & impairment losses	15	18	11	11	12	11	11	11	11
Number of employees, average	720	715	737	778	768	772	776	764	747
Not broken down by segments
Elimination of inter-segmental sales	-26	-23	-25	-36	-35	-33	-37	-39	-32
Operating loss	0	0	0	0	0	0	0	-12	-5
Assets	226	235	165	123	172	114	73	81	4
Liabilities	217	220	196	194	191	190	204	259	387
Group
Net sales	449	431	492	596	610	577	593	559	554
Operating income	59	32	74	86	89	80	83	60	58
Operating margin, %	13.0	7.5	14.9	14.5	14.6	13.9	14.1	10.8	10.4
Assets 4)	1,803	1,818	1,820	1,895	1,930	1,904	1,812	1,716	1,817
Liabilities 4)	1,173	1,203	1,158	1,241	1,258	1,271	936	960	1,095
Capital employed	1,016	1,019	1,098	1,165	1,130	1,151	1,204	1,135	1,064
ROCE, % 3)	23.1	25.3	26.7	28.1	26.9	24.9	22.9	19.7	15.7
Net investments in fixed assets	3	20	9	13	9	15	10	12	13
Depreciation, amortization and
impairment losses	21	31	23	23	23	28	26	18	18
Number of employees, average	1,018	1,054	1,117	1,180	1,184	1,189	1,202	1,183	1,152

1) Figures for 2012 have been restated. See "Basis of preparation and Accounting Policies" section.

2) Total Net sales, includes both external and internal net sales

3) As 2011 is not restated the comparable figures for previous quarters are calculated on operating income & capital employed before restatement.

4) Assets and Liabilities in the periods Q1-Q3 2011 have not been restated.

Operating income per operating segment, 1)

	2013	2012	2012	2012	2012	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Americas	25	31	35	44	44	33	36	32	30
Europe & RoW	34	1	39	42	45	47	47	40	33
Unallocated 2)	-	-	-	-	-	-	-	-12	-5
Total operating income	59	32	74	86	89	80	83	60	58
Financial net	-8	-11	-7	-10	-10	-3	-4	-11	-12
Earnings before tax	51	21	67	76	79	77	79	49	46

1) Figures for 2012 have been restated. See "Basis of preparation and Accounting Policies" section.

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

Sales by customer location - geographic area

	2013	2012	2012	2012	2012	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
USA	222	234	272	327	330	308	323	291	288
Germany	74	63	70	82	83	86	80	77	85
UK	34	29	38	49	53	55	53	47	52
Sweden	33	25	25	34	37	28	28	38	37
Other	86	80	87	104	107	100	109	106	92
Total Group	449	431	492	596	610	577	593	559	554

Tangible assets by operating location

	2013	2012	2012	2012	2012	2011	2011	2011	2011
Amounts in MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
USA	56	59	62	69	66	73	83	78	78
Germany	31	34	33	36	35	36	36	43	38
UK	43	46	38	33	32	31	32	31	31
Sweden	12	12	15	15	16	16	15	14	14
Other	28	30	30	29	30	29	27	19	23
Total Group	170	181	178	182	179	185	193	185	184

Parent Company's income statement, in summary

	Jan-Mar		Apr-Mar	Jan-Dec
Amounts in MSEK	2013	2012	2012/13	2012
Net sales	6	5	22	21
Operating costs	-4	-4	-15	-15
Operating income/loss	2	1	7	6
Income from shares in subsidiaries	-	-	5	5
Income from shares in associated companies	12	-	22	10
Net foreign exchange rate differences	-	5	3	8
Other financial income and expense	-1	-2	-6	-7
Earnings before tax	13	4	31	22
Taxes	-	-1	-3	-4
Net income for the period 1)	13	3	28	18

1) Total Comprehensive income for the Parent Company is the same as net income for the period.

Parent Company's balance sheet, in summary

	31 Mar	31 Mar	31 Dec
Amounts in MSEK	2013	2012	2012
Shares in subsidiaries	937	937	937
Shares in associated companies	10	10	10
Long-term loans receivable from subsidiaries	77	102	80
Deferred tax assets	2	6	2
Total fixed assets	1,026	1,055	1,029
Current receivables	1	2	2
Short-term receivables from subsidiaries	21	11	36
Cash and cash equivalents	221	167	230
Total current assets	243	180	268
Total assets	1,269	1,235	1,297
Total Shareholders' equity	589	665	576
Long-term loans	175	175	175
Total long-term liabilities	175	175	175
Short-term loans payable to associated companies	-	-	10
Short-term loans payable to subsidiaries	497	388	530
Other current liabilities	8	7	6
Total current liabilities	505	395	546
Total liabilities and shareholders' equity	1,269	1,235	1,297

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

	31 Mar	31 Mar	31 Dec
Amounts in MSEK	2013	2012	2012
Opening balance	576	662	662
Total comprehensive income 1)	13	3	18
Dividend	-	-	-88
Buy-back own shares	-	-	-16
Closing balance	589	665	576

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 interest bearing financial assets and cash and cash equivalents and non-interest bearing liabilities, excluding any tax assets and tax 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	Ratio of net debt to shareholders' equity
Gross margin	Net sales less cost of goods sold, as a percentage of net sales
Market indices	Market update received from Power Systems Research, Off-Highway Research and the International Truck Association for lift trucks,
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
P/E ratio	Market value at year-end divided by net earnings
Payout ratio	Dividend divided by EPS
R&D	Research and development expenditure
ROCE	Return on capital employed; EBIT or Operating income as a percentage of the average capital employed over a rolling 12 months
ROE	Return on equity; net income as a percentage of the average shareholders' equity over a rolling 12 months
Sales growth, constant currency	Growth rate based on sales restated at prior year foreign exchange rates
"Underlying" or "before items affecting comparability"	Adjusted for restructuring costs and other 'one-off' items and the tax impact thereon where appropriate
Working capital	Current assets excluding cash, less non-interest-bearing current liabilities

	Re p or	d In te co	S ta te m e	t m en		A d j tm us	ts en		Re ta s	d In te co	S ta te m e	t m en
d Y t t e a r- o- a e	20 12 Ja n	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja	20 12 Ja
Am nts in M S E K ou	Ma r	n- Ju n	n- Se p	n- De c	n- Ma r	n- Ju n	n- Se p	n- De c	n- Ma r	n- Ju n	n- Se p	n- De c
Ne les t s a	610	1, 206	1, 698	2, 129	-	-	-	-	610	1, 206	1, 698	2, 129
Co f g ds ld st o oo so	3 -44	-87 5	237 -1,	570 -1,	1	2	4	5	2 -44	-87 3	233 -1,	565 -1,
Gr inc os s om e	16 7	33 1	46 1	55 9	1	2	4	5	16 8	33 3	46 5	56 4
Se llin g exp en ses	-20	-41	-57	-70	-	1	1	1	-20	-40	-56	-69
Ad mi nis tiv tra e e xp en ses	-40	-81	-11 9	-14 7	6	11	17	22	-34	-70	-10 2	-12 5
du dev lop Pro ct nt e me exp en ses	-20	-39	-55	-76	-	-	-	-	-20	-39	-55	-76
Ot her tin inc nd op era g om e a exp ens es	-5	-9	-3	-13	-	-	-	-	-5	-9	-3	-13
Op ing in t era co me	82	16 1	22 7	25 3	7	14	22	28	89	17 5	24 9	28 1
l in nd Fin ia anc com e a exp en se	-8	-17	-22	-32	-2	-3	-5	-6	-10	-20	-27	-38
rni be for Ea e t ng s ax	74	14 4	20 5	22 1	5	11	17	22	79	15 5	22 2	24 3
Ta xes	-23	-46	-62	-66	-1	-3	-5	-6	-24	-49	-67	-72
Ne inc for he io d t t om e p er	51	98	14 3	15 5	4	8	12	16	55	10 6	15 5	17 1

Appendix 1 -Restated Consolidated Income Statement for 2012 by quarter, in summary

Q ly t a e u r r	20 12	20 12	20 12	20 12	20 12	20 12	20 12	20 12	20 12	20 12	20 12	20 12
Am in M S E K nts ou	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4
les Ne t s a	610	596	49 2	43 1	-	-	-	-	610	596	49 2	43 1
Co f g ds ld st o oo so	-44 3	-43 2	-36 2	-33 3	1	1	2	1	-44 2	-43 1	-36 0	-33 2
Gr inc os s om e	16 7	16 4	13 0	98	1	1	2	1	16 8	16 5	13 2	99
Se llin g exp en ses	-20	-21	-16	-13	-	1	-	-	-20	-20	-16	-13
Ad mi nis tiv tra e e xp en ses	-40	-41	-38	-28	6	5	6	5	-34	-36	-32	-23
Pro du dev lop ct nt e me exp en ses	-20	-19	-16	-21	-	-	-	-	-20	-19	-16	-21
Ot her nd tin inc op era g om e a exp ens es	-5	-4	6	-10	-	-	-	-	-5	-4	6	-10
Op ing in t era co me	82	79	66	26	7	7	8	6	89	86	74	32
l in nd Fin ia anc com e a exp en se	-8	-9	-5	-10	-2	-1	-2	-1	-10	-10	-7	-11
Ea rni be for e t ng s ax	74	70	61	16	5	6	6	5	79	76	67	21
Ta xes	-23	-23	-16	-4	-1	-2	-2	-1	-24	-25	-18	-5
Ne inc for he io d t t om e p er	51	47	45	12	4	4	4	4	55	51	49	16

Appendix2 - Restated Consolidated Balance Sheet for 2012 by quarter, in summary

	d lan he Re te Ba S t p or ce e					d j A us	tm ts en		Re	d ta te Ba s	lan he S ce	t e
	3 1 Ma r	3 0 Ju n	3 0 Se p	3 1 De c	3 1 Ma r	3 0 Ju n	3 0 Se p	3 1 De c	3 1 Ma r	3 0 Ju n	3 0 Se p	3
Am nts in M SE K ou	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2	2 0 1 2
Go dw ill o	49 1	505	48 5	48 1	-	-	-	-	49 1	505	48 5
her ib le fixe d a Ot in tan ts g sse	370	376	35 1	33 6	-	-	-	-	370	376	35 1
Ta ib le fixe d a ts ng sse	179	182	178	18 1	-	-	-	-	179	182	178
fer d t De ets re ax ass	23	26	24	38	115	115	110	118	138	141	134
b les Lon ter eiv g- m rec a	6	5	5	5	-	-	-	-	6	5	5
fix To ta l d a ts e sse	1, 06 9	1, 09 4	1, 04 3	1, 04 1	11 5	11 5	11 0	11 8	1, 18 4	1, 20 9	1, 15 3
Inv ori ent es	193	185	176	167	-	-	-	-	193	185	176
b les Cu nt eiv rre rec a	318	318	279	204	-	-	-	-	318	318	279
Ca h a nd h e iva len ts s cas qu	23 5	183	212	288	-	-	-	-	23 5	183	212
l c To ta t a ts ur ren sse	74 6	68 6	66 7	65 9	-	-	-	-	74 6	68 6	66 7
l a To ta ts sse	81 1, 5	78 0 1,	0 1, 71	70 0 1,	11 5	11 5	0 11	8 11	93 0 1,	89 1, 5	82 0 1,
l S ha ho lde ' e ity To ta re rs qu	96 5	95 2	94 4	94 3	-29 3	-29 8	-28 2	-3 28	67 2	65 4	66 2
d s lar b lig Pen sio imi ati ns an o on s	103	113	103	10 1	40 8	41 3	39 2	44 6	51 1	526	49 5
De fer d t lia bi litie re ax s	90	90	85	71	-	-	-	-	90	90	85
bea lia bi litie Lon ter int st- rin g- m ere g s	175	175	175	175	-	-	-	-	175	175	175
Ot her lo lia bi litie -te ng rm s	8	8	7	4	-	-	-	-	8	8	7
l lo lia b ilit ies To ta -te ng rm	37 6	38 6	37 0	35 1	40 8	3 41	39 2	6 44	78 4	79 9	76 2
S ho in -be ari lia bi litie rt-t ter est erm ng s	14	14	12	13	-	-	-	-	14	14	12
her lia bi litie Ot nt cu rre s	46 0	42 8	384	39 3	-	-	-	-	46 0	42 8	384
To l c lia b ilit ies ta t ur ren	47 4	44 2	39 6	40 6	-	-	-	-	47 4	44 2	39 6
l li b ilit ies d s ha ho lde ' To ta a an re rs ity eq u	1, 81 5	1, 78 0	1, 71 0	1, 70 0	11 5	11 5	11 0	11 8	1, 93 0	1, 89 5	1, 82 0	1,