Interim report January – September 2008

Published on October 23, 2008

Third quarter of 2008 – Continued growth with favourable margins

Net sales increased by 17 percent to 795 MSEK (680)
Operating profit amounted to 85 MSEK (86)
Profit after tax amounted to 48 MSEK (49)
Earnings per share amounted to 1.80 SEK (1.85)
Business area HEXPOL Compounding's sales increased by 23 percent
Continued raw-material price increases

First nine months of 2008 – Strong growth and increased profit

Net sales increased by 26 percent to 2,493 MSEK (1,986)
Operating profit increased 8 percent to 256 MSEK (237)
Profit after tax rose 8 percent to 152 MSEK (141)
Earnings per share increased by 8 percent to 5.72 SEK (5.31)
Operating cash flow was strong and amounted to 101 MSEK (63)

President's comments

"Our growth with favourable margins continued despite a deterioration in market conditions. During the third quarter, sales increased by 17 percent and by a full 23 percent within business area HEXPOL Compounding, despite reduced activity, primarily within the automotive industry. Our operating profit amounted to 85 MSEK, corresponding to an operating margin of 10.7 percent. During the quarter, the automotive industry in both the US and Europe announced sharp reductions in production and, particularly toward the end of the quarter, we had lower volumes to automotive-related customers.

Our sales for the first nine months of the year increased by 26 percent, while earnings per share increased by 8 percent to 5.72 SEK (5.31). Operating cash flow was strong and amounted to 101 MSEK (63)."

Georg Brunstam, President and CEO

		Jul-Sep		Jan - Sep	Full-year	Oct 2007-
MSEK	2008	2007	2008	2007	2007	Sep 2008
Net sales	795	680	2 493	1 986	2 730	3 237
Operating profit, EBIT	85	86	256	237	305	324
Operating margin, %	10,7	12,6	10,3	11,9	11,2	10,0
Profit before tax	68	72	215	202	255	268
Profit after tax	48	49	152	141	186	197
Earnings per share, SEK	1,80	1,85	5,72	5,31	7,01	7,42
Operating cash flow	31	52	101	63	92	130
Equity/assets ratio, %	-	-	33,7	37,8	36,7	-
Return on capital employed, %	-	-	14,5	16,3	15,1	-

Group summary

HEXPOL is a world-leading polymers group with strong global positions in advanced rubber compounds (Compounding), gaskets for plate heat exchangers (Gaskets) and wheels made of plastic and rubber materials for truck and castor wheel applications (Wheels). Customers are primarily OEM manufacturers of plate heat exchangers and trucks, as well as global systems suppliers to the automotive industry. The Group is organized in two business areas, Hexpol Compounding and Hexpol Engineered Products, and has about 2,300 employees in nine countries. In 2007, Hexpol had sales of about 2,700 MSEK. Read more at www.hexpol.com

Third quarter 2008

Group sales increased by 17 percent during the third quarter to 795 MSEK (680). Excluding the acquisition of Goldkey, sales rose 3 percent to 659 MSEK (642). Exchange-rate fluctuations had a negative impact of 6 MSEK on sales, primarily due to the weakening of the USD, compared with the preceding year.

Operating profit amounted to 85 MSEK (86), corresponding to an operating margin of 10.7 percent (12.6). The deterioration in margin was due to lower profit in business area HEXPOL Engineered Products and continued low capacity utilization in the newly started plants in China and Mexico within business area HEXPOL Compounding. Profit was also negatively affected by currency in an amount of 5 MSEK, primarily within business area HEXPOL Engineered Products where a sharply strengthened Sri Lankan Rupee (LKR) had a negative impact on profit.

Net sales Operating profit and operating margin

Sales in business area HEXPOL Compounding increased by 23 percent to 609 MSEK (495), while operating profit rose 15 percent to 63 MSEK (55). In the US, volumes remained weak during the third quarter and in Europe, a distinct slowdown was experienced in the automotive industry toward the end of the quarter. Within NAFTA, volumes in the unit in Mexico increased for each month.

Within business area HEXPOL Engineered Products, sales increased somewhat and amounted to 186 MSEK (185). Operating profit declined to 22 MSEK (31). Lower volumes in gaskets for plate heat exchangers, lower capacity utilization, increased difficulties in passing on increases in raw-material prices to customers and negative effects of the strengthened LKR were the reasons for the weaker trend in the third quarter. However, volumes and sales of wheels improved during the third quarter, particularly in the US.

In Europe, overall demand was lower during the quarter, and particularly toward the end of the quarter, a clear weakening of demand was noted from the automotive industry. However, volumes in Eastern Europe remained at a relatively high level.

Within NAFTA (Canada, the US and Mexico), we noted continued low activity, primarily in the automotive industry and the construction sector in the US. A certain part of the decline in the US was offset by volume growth in Mexico and favourable volumes in segments outside the automotive and

construction sectors. Within business area HEXPOL Engineered Products, production of polyurethane wheels in the US increased in volume during the quarter.

In Asia, production at the new plants in China within business areas HEXPOL Engineered Products and HEXPOL Compounding gradually increased after a temporary decline in conjunction with the Olympic Games in August.

Raw-material prices continued to increase, despite lower oil prices. The reasons include difficulties in securing the availability of certain raw materials and the storms in the Mexican Gulf, which resulted in delivery problems and shortages among a number of suppliers. Overall, increases in raw-material price had a certain negative impact on margins, particularly within business area HEXPOL Engineered Products. Negotiations with customers regarding price increases are in progress but are more difficult than in previous quarters.

The Group's operating cash flow during the third quarter amounted to 31 MSEK (52). The Group's net interest expense during the third quarter amounted to 17 MSEK (expense: 14).

Profit before tax amounted to 68 MSEK (72). Profit after tax was 48 MSEK (49), corresponding to earnings per share of 1.80 SEK (1.85).

January - September 2008

During the first nine months of the year, Group sales increased 26 percent to 2,493 MSEK (1,986). Excluding the acquisition of Goldkey, sales rose 6 percent to 2,112 MSEK (1,986). Exchange-rate fluctuations had a negative impact of 57 MSEK, primarily due to a weakening of the USD. Operating profit increased by 8 percent to 256 MSEK (237), corresponding to an operating margin of 10.3 percent (11.9).

Within business area HEXPOL Compounding, sales increased by 35 percent to 1,905 MSEK (1,406) and operating profit by 23 percent to 181 MSEK (148). Growth in this business area was strong during the first nine months of the year.

In Europe, demand was favourable, above all during the first six months of the year and particularly in Eastern Europe, where demand among customers within the automotive industry was strong during the first six months. In the third quarter, however, clearly weaker demand from the automotive industry was noted.

Volumes also showed good development in NAFTA, despite a weakening economy. The decline in the US was offset by sharply increased volumes in the newly established plant in Mexico. Integration of GoldKey acquired in September 2007 is proceeding according to plan and contributing volumes in segments outside the automotive and construction sectors. Within NAFTA, we also noted that volumes from automotive-related customers, particularly in the US, declined additionally toward the end of the third quarter.

In Asia, the newly established plants in Qingdao, China, gradually increased volumes, although a certain decline was evident in conjunction with the Olympic Games in August.

Business area HEXPOL Engineered Products increased sales somewhat to 588 MSEK (580). Operating profit amounted to 75 MSEK (89). Gaskets for plate heat exchangers showed increasing volumes during the first six months. However, lower activity in the market, fewer major projects and delayed call-offs resulted in lower volumes during the third quarter. Within the wheel segment, production of polyurethane wheels in the US increased in volume.

The Group's operating cash flow increased during the first nine months of the year to 101 MSEK (63). The strong cash flow was achieved through strong profits and a lower rate of investment. The Group's net interest expense amounted to 41 MSEK (expense: 35) during the period.

Profit before tax increased to 215 MSEK (202). Profit was negatively affected in an amount of 9 MSEK by exchange-rate changes. Profit after tax increased by 8 percent to 152 MSEK (141), corresponding to earnings per share of 5.72 SEK (5.31).

Profitability

Return on average capital employed amounted to 14.5 percent (16.3). The lower return was primarily due to the acquisition of GoldKey. Return on average shareholders' equity amounted to 19.4 percent (19.7).

Financial position and liquidity

The equity/assets ratio amounted to 33.7 percent (37.8). The Group's total assets increased to 3,150 MSEK (2,703). The Group's net debt amounted to 1,296 MSEK (1,090), and the net debt/equity ratio was a multiple of 1.2 (1.1). The interest coverage ratio was a multiple of 4.6 (5.8).

Cash flow

During the period, cash flow from operations before changes in working capital increased by 14 percent to 221 MSEK (194). Cash flow from operations amounted to 182 MSEK (192). Operating cash flow amounted to 101 MSEK (63).

Investments, depreciation and amortization

The Group's net investments, excluding company acquisitions and divestments, amounted to 81 MSEK (129) during the first nine months of the year. Investments during the period consisted primarily of investments in production facilities for gaskets for plate heat exchangers in Qingdao, China, and expanded production capacity at the rubber compounding plant in Mexico. Depreciation and amortization during the period amounted to 69 MSEK (51).

Tax expenses

The Group's tax expenses during the first nine months of the year amounted to 63 MSEK (61), corresponding to a tax rate of 29.3 percent (30.2). Tax expenses are affected by the fact that a significant portion of profit is generated in subsidiaries in countries where the tax rate differs from that in Sweden.

Personnel

The number of employees at the end of the period was 2,330 (2,362).

Extraordinary General Meeting in HEXPOL AB

At an extraordinary general meeting in HEXPOL AB August 18 it was resolved in accordance with the Board of Director's proposal to implement a subscription warrant programme for the group management as well as other senior executives and key employees in the group by a directed issue of 1,325,000 subscription warrants. For more information, see the press release published August 19 2008.

Events after the closing date

On 3 October, Urban Ottosson was appointed new CFO of HEXPOL AB. Urban is currently CFO of the exchange-listed company Beijer Electronics AB. Anders Lyrheden, currently CFO of HEXPOL AB, will leave the HEXPOL Group at his own request when Urban Ottosson assumes his new position, which is expected to occur during the first quarter of 2009.

On 7 October, Maths O. Sundqvist requested to resign from his assignment as member of the Board of HEXPOL AB with immediate effect.

Gislaved Gummi, a part of HEXPOL Engineered Products did on October 10 give employment termination notice to 43 of the totally 300 employees at the plant in Gislaved as a consequence of lower demand.

Åsa Nisell from Swedbank Robur, Anders Algotsson from AFA Försäkring, and Henrik Didner from Didner & Gerge will be members of the Nomination Committee for the 2009 Annual General Meeting. Mikael Ekdahl will represent Melker Schörling AB as Chairman of the Nomination Committee.

Business area HEXPOL Compounding

Business area HEXPOL Compounding is a world leader in the development and manufacture of high-quality advanced rubber compounds (Compounding). Customers are manufacturers of rubber products with stringent demands for performance and global delivery capacity. The largest market segments are the automotive industry, followed by the construction industry. Other key segments are the cabling, water treatment, pharmaceutical, energy and oil industries.

		Jul-Sep		Jan-Sep	Full-year	Oct 2007-
MSEK	2008	2007	2008	2007	2007	Sep 2008
Net sales	609	495	1 905	1 406	1 955	2 454
Operating profit	63	55	181	148	195	228
Operating margin, %	10,3	11,1	9,5	10,5	10,0	9,3

During the third quarter, sales increased by 23 percent to 609 MSEK (495). Operating profit rose 15 percent to 63 MSEK (55), corresponding to an operating margin of 10.3 percent (11.1). The operating margin was affected by lower capacity utilization in the newly started plants in China and Mexico and by the USD being weaker than in the year-earlier period.

In Europe, volume growth was weaker than during previous quarters, particularly toward the end of the quarter when a clear weakening of demand was noted. Overall, deliveries to customers in the automotive industry decreased in both Western and Eastern Europe. In NAFTA, the unit in Mexico showed continued favourable growth, as a result of the transfer of automotive production from the US to Mexico. To some extent, this is offsetting the decline that we are still noting in the automotive and construction industries in the US. However, HEXPOL's volumes within NAFTA have not declined at the same rate as the market. We estimate that we have taken market shares in the automotive industry and increased volumes to sectors outside the automotive and construction industries. In Canada, volumes remained at a stable, albeit low level. In Asia, the newly established plant is gradually increasing volumes. A temporary decline in demand was noted in August during the Olympic Games, and capacity utilization remains relatively low.

Raw-material prices continued to increase during the third quarter, despite lower oil prices. The reasons include difficulties in securing the availability of some raw materials and the storms in the Mexican Gulf, which resulted in delivery problems and shortages among a number of suppliers. The impact on profit was marginal, as a result of continued measures that included price increases, reformulation of materials and changes of suppliers. Additional price increases were implemented, but negotiations with customers are becoming increasingly difficult in a market that is characterized by a climate of financial unrest.

Net sales Operating profit & operating margin

Business area HEXPOL Engineered Products

Business area HEXPOL Engineered Products, through its considerable expertise in polymers and the production of rubber, plastic and polyurethane products, has gained a world-leading position as a supplier of advanced products, such as gaskets for plate heat exchangers (Gaskets) and wheels for truck and castor wheel applications (Wheels).

		Jul-Sep		Jan-Sep	Full-year	Oct 2007-
MSEK	2008	2007	2008	2007	2007	Sep 2008
Net sales	186	185	588	580	775	783
Operating profit	22	31	75	89	110	96
Operating margin, %	11,8	16,8	12,8	15,3	14,2	12,3

Sales during the third quarter were largely unchanged and amounted to 186 MSEK (185). Operating profit declined to 22 MSEK (31), corresponding to an operating margin of 11.8 percent (16.8). Lower volumes within product area Gaskets, reduced capacity utilization, increased difficulties in compensating for increases in raw-material price and negative effects of a strengthened LKR were the primary reasons for the decline in profit.

Product area Gaskets reported reduced sales during the quarter. Generally lower activity in the market, fewer major project-related orders and delayed call-offs resulted in lower production volumes in our plants during the quarter. Toward the end of the quarter, a review of staffing was conducted in the Swedish unit for production of gaskets for plate heat exchangers. This resulted in employment termination notices being issued on 10 October for 43 persons at Gislaved Gummi AB. As previously announced, the start of production of gaskets for plate heat exchangers in China was postponed due to lower volumes and a favourable productivity trend in Sri Lanka.

Product area Wheels showed a somewhat better trend during the third quarter. Volumes in the US were higher, and the implemented action programme produced results. Within the Profiles product area, the volume trend matched the trend noted in the corresponding period of the preceding year.

Increases in raw-material prices within business area Engineered Products are accelerating, and for some polymers, there is even a shortage of materials. Price negotiations with customers have been and remain difficult.

Parent Company

The Parent Company reported a loss after tax of 31 MSEK (loss: 5). Shareholders' equity amounted to 360 MSEK (576).

Outlook

In the previous interim report the outlook was "HEXPOL expects continued favourable development during 2008." Given the major uncertainties currently prevailing in the global economy, HEXPOL is not providing an assessment of the outlook.

Risk factors

The Group's and the Parent Company's business risks, risk management and management of financial risks are described in the prospectus for the listing of HEXPOL AB shares that was published on 5 June 2008. No events of significant importance occurred during the period that could affect or change these descriptions of the Group's or the Parent Company's risks and their management.

Accounting principles

This interim report was prepared in accordance with IAS 34 Interim Reporting and the Annual Accounts Act. The accounting and valuation principles applied in the prospectus for the listing of HEXPOL AB shares were also applied in this interim report.

Invitation to presentation of report

The interim report will be presented at Sund Kommunikation's office at Birger Jarlsgatan 58, at 8:00 a.m. on October 24. The presentation will also be available at www.hexpol.com.

Financial information

HEXPOL AB will publish financial information on the following dates: Event Date

Year-end report 2008 10 February 2009
Interim report January March 2009 5 May 2009
Interim report January June 2009 23 July 2009
Interim report January September 2009 23 October 2009
Year-end report 2009 February 2010

Financial information is also available in Swedish and English on HEXPOL's website at www.hexpol.com.

For further information, contact:

Georg Brunstam, President and CEO Tel: +46 708 55 12 51
Anders Lyrheden, CFO Tel: +46 703 20 96 95

The interim report provides a fair summary of the operations, financial position and earnings of the Parent Company and the Group. It also describes the significant risks and uncertainties that the Parent Company and the companies in the Group face.

Malmö, October 23, 2008 HEXPOL AB (publ)

Georg Brunstam, President and CEO

Address: Skeppsbron 3 SE-211 20 Malmö Sweden

Corporate registration number: 556108-9631 Tel: +46 40-25 46 60 Fax: + 46 40-25 46 89 Web site: www.hexpol.se

This is the type of information that HEXPOL AB is obliged to disclose in accordance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted to the media for publication at 3:00 p.m. on October 23 2008.

Review Report

To the Board of Directors of HEXPOL AB (publ) Corporate Identity Number 556108-9631

Introduction

We have reviewed the interim report for HEXPOL AB for the period from January 1, 2008 to September 30, 2008. It is the Board of Directors and the Managing Director who are responsible for the presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

The Scope of the Review

We conducted our review in accordance with the Standard on Review Engagements, SÖG 2410, Review of the Interim Financial Information Performed by the Independent Auditors of the Entity, issued by the Federation of Authorized Public Accountants. A review of the interim report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review substantially smaller less in scope compared to an audit conducted according to Standards on Auditing in Sweden (RS) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Accordingly, the conclusion expressed based on a review does not constitute the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report, in all material respects, is not prepared for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Swedish Annual Accounts Act.

Malmö, October 23, 2008

Ernst & Young AB

Ingvar Ganestam Stefan Engdahl Authorized Public Accountant Authorized Public Accountant

Group's income statement

	Jul-Sep			Jan-Sep	Full-year	Oct 2007-
MSEK	2008	2007	2008	2007	2007	Sep 2008
Net sales	795	680	2 493	1 986	2 730	3 237
Cost of goods sold	-653	-550	-2 075	-1 623	-2 238	-2 690
Gross profit	142	130	418	363	492	547

Selling and administration costs, etc.	-57	-44	-162	-126	-187	-223
Operating profit	85	86	256	237	305	324

Financial income and expenses	-17	-14	-41	-35	-50	-56
Profit before tax	68	72	215	202	255	268

Tax	-20	-23	-63	-61	-69	-71
Net profit for the period	48	49	152	141	186	197
- of which, attributable to the Parent	48	49	152	141	186	197
Company's shareholders

Earnings per share, SEK	1,80	1,85	5,72	5,31	7,01	7,42
Earnings per share after dilution, SEK	1,80	1,85	5,72	5,31	7,01	7,42
Shareholders' equity per share, SEK			40,00	38,49	38,60
CB number of shares, thousands	26 552	26 552	26 552	26 552	26 552	26 552
Average number of shares, thousands 1)	26 552	26 552	26 552	26 552	26 552	26 552

Average number of shares after dilution, thousands 1)	26 552	26 552	26 552	26 552	26 552	26 552
Depreciation, amortization and impairment included in an amount of	-23	-17	-69	-51	-70	-88

1) number of shares after exchange listing

Group's balance sheet

	Sep 30	Sep 30	Dec 31
MSEK	2008	2007	2007
Intangible fixed assets	1 197	1 098	1 134
Tangible fixed assets	783	701	735
Financial fixed assets	5	2	2
Total fixed assets	1 985	1 801	1 871
Inventories	412	286	308
Accounts receivable	445	429	344
Other receivables	44	35	26
Prepaid expenses and accrued income	21	11	18
Total current receivables	510	475	388
Cash and cash equivalents	243	141	228
Total current assets	1 165	902	924
Total assets	3 150	2 703	2 795
Attributable to the Parent Company's shareholders	1 062	1 022	1 025
Total shareholders' equity	1 062	1 022	1 025
Pension provisions	10	9	10
Deferred tax liabilities	8	36	20
Interest-bearing liabilities	1 400	953	1 294
Total non current liabilities	1 418	998	1 324
Interest-bearing liabilities	139	278	92
Accounts payable	323	257	252
Other liabilities	69	43	13
Accrued expenses and deferred income	139	105	89
Total current liabilities	670	683	446
Total shareholders' equity and liabilities	3 150	2 703	2 795

Group's changes in shareholders' equity

	Sep 30	Sep 30	Dec 31
MSEK	2008	2007	2007
Opening shareholders' equity	1 025	883	883
Translation difference	66	-2	49
Exchange-rate differences in hedging instruments	2	-	-
Net profit for the period	152	141	186
Total changes in net asset value, excluding transactions involving company shareholders	220	139	235
Dividend	-181	-	-
Stock option payment	7	-	-
Expenses in conjunction with stock listing	-9	-	-
Group contributions	0	0	-93
Closing shareholders' equity	1 062	1 022	1 025

Number of shares, trend

	Total number of Class A shares	Total number of Class B shares	Total number of shares
Number of shares at 1 January		100	100
Split 500:1		50 000	50 000
Bonus issue	1 181 250	25 370 727	26 551 977

Incentive programme 2008/2011

At the Extraordinary General Meeting August 18 2008 it was resolved to offer a warrant program to senior executives of 1,325,000 warrants. Each warrant entitles the holder to subscribe for one share. The redemption period is March 1, 2011 to September 1, 2011. The redemption price is 65.70 SEK. During the third quarter of 2008, 933,250 warrants have been subscribed by senior executives. The price for each warrant was 8 SEK.

Group's cash flow statement

	January - September		Full-year
MSEK	2008	2007
Cash flow from operations before change in working capital	221	194	268
Change in working capital	-39	-2	-3
Cash flow from operations	182	192	265

Net investments in ordinary operations	-81	-129	-173
Operating cash flow	101	63	92

Acquisition of subsidiaries	-	-350	-350
Cash flow from financing activities	-86	312	370
Change in cash and cash equivalents	15	25	112
Cash and cash equivalents at 1 January	228	116	116
Cash and cash equivalents at 30 September	243	141	228

Key figures

		Jul-Sep	Jan-Sep	Full-year
	2008	2007	2008	2007	2007
Operating margin, %	10,7	12,6	10,3	11,9	11,2
Profit margin before tax, %	8,6	10,6	8,6	10,2	9,3
Return on shareholders' equity, %	-	-	19,4	19,7	19,5
Return on capital employed, %	-	-	14,5	16,3	15,1
Equity/assets ratio, %	-	-	33,7	37,8	36,7
Interest-coverage ratio, multiple	-	-	4,6	5,8	5,3
Average number of shares, thousands	26 552	26 552	26 552	26 552	26 552
Earnings per share, SEK	1,80	1,85	5,72	5,31	7,01
Cash flow per share, SEK	1,84	3,24	6,85	7,23	9,98
Cash flow per share before change in working capital, SEK	2,67	2,56	8,32	7,31	10,09

Quarterly data, Group

Sales per business area		2008			2007
MSEK	Jan Mar	Apr Jun	Jul Sep	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full Year	Oct 07- Sep 08
HEXPOL Compounding	648	648	609	460	451	495	549	1 955	2 454
HEXPOL Engineered Products	204	198	186	196	199	185	195	775	783
Group total	852	846	795	656	650	680	744	2 730	3 237

Sales per geographic area		2008			2007
MSEK	Jan Mar	Apr Jun	Jul Sep	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full Year	Oct 07- Sep 08
Europe	535	531	449	473	459	447	451	1 830	1 966
NAFTA	284	276	309	159	166	211	272	808	1 141
Asia	33	39	37	24	25	22	21	92	130
Group total	852	846	795	656	650	680	744	2 730	3 237

Operating profit per business area		2008			2007
MSEK	Jan Mar	Apr Jun	Jul Sep	Jan Mar	Apr Jun	Jul Sep	Oct Dec	Full Year	Oct 07- Sep 08
HEXPOL Compounding	55	63	63	43	50	55	47	195	228

HEXPOL Engineered Products 28 25 22 26 32 31 21 110 96 Group total 83 88 85 69 82 86 68 305 324

Parent Company income statement

		Jul-Sep		Jan - Sep	Full year
MSEK	2008	2007	2008	2007	2007
Net sales	7	6	22	17	22
Selling and administration costs, etc.	-9	-6	-26	-16	-26
Operating profit/loss	-2	0	-4	1	-4

Financial income and expenses	-16	-4	-39	-8	-14
Loss before tax	-18	-4	-43	-7	-18

Tax	5	1	12	2	5
Net loss for the period	-13	-3	-31	-5	-13

Parent Company balance sheet

	Sep 30	Sep 30	Dec 31
MSEK	2008	2007	2007
Total fixed assets	1 480	1 166	1 342
Total current receivables	531	14	152
Cash and cash equivalents	101	0	0
Total current assets	632	14	152
Total assets	2 112	1 180	1 494
Total shareholders' equity	360	576	581
Total non current liabilities	1 354	0	0
Total current liabilities	398	604	913
Total shareholders' equity and liabilities	2 112	1 180	1 494

Financial definitions

Capital employed	Total assets less non-interest-bearing liabilities.
Cash flow	Cash flow from operating activities after change in working capital.
Cash flow per share	Cash flow from operating activities after change in working capital, divided by average number of shares.
Earnings per share	Net profit divided by average number of shares.
Equity/assets ratio	Shareholders' equity as a percentage of total assets.
Interest-coverage ratio	Profit before tax plus interest expenses divided by interest expenses.
Investments	Purchases less sales of tangible and intangible fixed assets, excluding those included in acquisitions and divestments of subsidiaries.
Net debt/equity ratio	Interest-bearing liabilities less cash and cash equivalents divided by shareholders' equity.
Operating margin	Operating profit as a percentage of net sales for the period.
Profit margin before tax	Profit before tax as a percentage of net sales for the period.
Return on capital employed	Profit before tax plus interest expenses as a percentage of average capital employed.
Return on equity	Net profit as a percentage of average shareholders' equity.
Shareholders' equity per share	Shareholders' equity divided by the number of shares at period end.