Indutrade

Quarterly Report • Feb 15, 2008

Indutrade AB (publ) Box 6044, SE-164 06 Kista Office address: Raseborgsgatan 9 Reg. no. 556017-9367 Phone: +46 8 703 03 00 Fax: +46 8 752 79 39 E-mail: info@indutrade.se www.indutrade.se

(The information provided herein is such that Indutrade AB (publ) is obligated to disclose pursuant to the Securities and Clearing Operations Act (SFS 1992:543) and/or the Financial Instruments Trading Act (SFS 1991:980). Submitted for publication at 8 a.m. on February 15, 2008.)

YEAR-END REPORT 1 JANUARY–31 DECEMBER 2007

FOURTH QUARTER

• Net sales rose 24% during the fourth quarter, to SEK 1,549 million (1,254). The increase for comparable units was 11%.
• Operating profit before amortisation of intangible assets (EBITA) rose 25% to SEK 169 million (135), and the EBITA margin was 10.9% (10.8%).
• Profit after tax rose 19% to SEK 109 million (92).
• Earnings per share were SEK 2.73 (2.30) for the quarter.

FULL YEAR

• Net sales for the year rose 26% to SEK 5,673 million (4,516). The increase for comparable units was 14%.
• Operating profit before amortisation of intangible assets (EBITA) rose 41% to SEK 650 (460) million, and the EBITA margin was 11.5% (10.2%).
• Profit after tax rose 40% to SEK 419 million (300).
• Earnings per share were SEK 10.48 (7.50).
• The return on operating capital was 40.6% (36.9%).
• The Board proposes a dividend of SEK 5.25 per share (3.75).

Figures in parentheses pertain to the corresponding period in 2006. Comparison figures for 2003 have not been adjusted for IFRS.

NET SALES AND EARNINGS, ETC.

October–December 2007

Incoming orders during the fourth quarter amounted to SEK 1,499 million (1,277), an increase of 17%. For comparable units, incoming orders rose 6%, while acquired growth was 11%. Net sales rose 24% during the quarter, to SEK 1,549 million (1,254). For comparable units, net sales rose 11%, while acquired growth was 13%. Currency movements had only a marginal impact on incoming orders and net sales during the period. The gross margin for the quarter was 32.8% (33.5%).

Operating profit before amortisation of intangible assets (EBITA) was SEK 169 million (135). The operating margin before amortisation of intangible asset (the EBITA margin) increased to 10.9% (10.8%).

January–December 2007

Incoming orders amounted to SEK 5,771 million for the year (4,739), an increase of 22%. For comparable units, incoming orders rose 10%, while acquired growth was 12%. Net sales rose 26% in 2007, to SEK 5,673 million (4,516). For comparable units, net sales rose 14%, while acquired growth was 12%. The effect of currency movements was marginal both with respect to incoming orders and net sales. The gross margin fell by 0.4 percentage points during the year, to 32.6%. All of the business areas had favourable growth during the year. Flow Technology was the business area with the strongest growth, with a 37% rise in net sales, mainly as a result of acquired growth, but also due to strong organic growth.

Operating profit before amortisation of intangible assets (EBITA) was SEK 650 million (460). The operating margin before amortisation of intangible assets (the EBITA margin) increased to 11.5% (10.2%). The improved EBITA margin for the year is mainly due to strong volume growth achieved with limited cost increases. Net financial items totalled SEK -31 million (-20), while tax on profit for the year is estimated at SEK -159 million (-116). Profit after tax rose 40% to SEK 419 million (300).

Financial development	2007	2006	Change	2007	2006	Change
SEK million	Oct.-Dec.	Oct.-Dec.	Q4 07/06	Full year	Full year	full year 07/06
Net sales	1,549	1 254	23.5%	5,673	4,516	25.6%
Sales growth, %	23.5	18.4	5.1%1)	25.6	18.2	7.4%1)
EBITA, SEK million	169	135	25.2%	650	460	41.3%
EBITA margin, %	10.9	10.8	0.1%1)	11.5	10.2	1.3%1)
Profit after financial items,
SEK million	148	122	21.3%	578	416	38.9%
Profit after tax, SEK million	109	92	18.5%	419	300	39.7%
Earnings per share, SEK	2.73	2.30	18.5%	10.48	7.50	39.7%
Return on operating capital, %	40.6	36.9	3.7%1)	40.6	36.9	3.7%1)
Net debt/equity ratio, %	54.7	53.0	1.7%1)	54.7	53.0	1.7%1)

The return on operating capital for the last 12 months increased to 40.6% (36.9%). Interest-bearing net debt increased by SEK 177 million to SEK 650 million (473), and the net debt/equity ratio was 55% (53%).

1) Change in percentage points.

Net sales, SEK million EBITA, SEK million

OVERVIEW OF BUSINESS AREA DEVELOPMENT – FULL YEAR 2007

Engineering & Equipment

Engineering & Equipment offers customised niche products, design solutions, aftermarket service and special processing. Products consist primarily of hydraulics, automotive workshop equipment, flow products and transmission products.

Net sales rose 25% in 2007, to SEK 1,968 million (1,576). For comparable units, net sales rose 22%, while acquired growth was 3%. Currency movements were negligible. EBITA amounted to SEK 204 million (146), corresponding to an EBITA margin of 10.4% (9.3%).

The strong organic growth, together with a limited cost increase, contributed to the improved EBITA margin.

During the year, Indutrade acquired the operations of Wavin-Labko Oy's Net & Instrument division (Labkotec) as well as the shares in Recair and Elra.

Flow Technology

Flow Technology offers components and systems for the management, control and supervision of flows. Products mainly consist primarily of valves, pumps, and measurement and analytical instruments.

Net sales for the year totalled SEK 1,474 million (1,073), an increase of 37%. For comparable units, net sales rose 12%, while acquired growth was 25%. EBITA for the year was SEK 145 million (93), and the EBITA margin increased to 9.8% (8.7%). The increase in the EBITA margin is attributable to the achievement of volume growth with a limited increase in costs. The increase was moderated by a higher proportion of sales of products and projects with a lower gross margin.

The companies Axelvalves, SAV-Danmark Trading, Sigurd Sørum, MWS Ventil Service, Palmstiernas Svenska and International Plastic Systems (IPS) were acquired during the year. ES Hydagent, for which an acquisition agreement was reached in 2006, is included in the Group as from 1 January 2007.

Industrial Components

Industrial Components offers a wide range of technically advanced components and systems for production and maintenance. Products, consisting mainly of consumables for recurring needs, include fasteners, filters, adhesives and cutting tools.

Net sales rose 18% during the year, to SEK 940 million (798). For comparable units, net sales rose 7%, while acquired growth was 11%. EBITA for the year was SEK 103 million (78), corresponding to an EBITA margin of 10.9% (9.8%). The margin improvement is mainly attributable to the increase in net sales, which was achieved with a limited rise in overheads. A slightly improved gross margin resulting from a changed product mix also contributed to the improved EBITA margin.

The company Aluflex System was acquired during the year.

Special Products

Special Products offers specially manufactured niche products, design solutions, aftermarket service and assembly, and special processing. Products include temperature sensors, special plastics, tool holders and electrical components, among others.

Net sales rose 21% for the year, to SEK 1,322 million (1,094). For comparable units, net sales rose 11%, while acquired growth was 10%. Currency movements had a marginally positive impact on sales growth. EBITA amounted to SEK 234 million (179), and the EBITA margin was 17.7% (16.4%). The margin improvement is attributable primarily to volume growth for the business area.

Carrab Industri was acquired during the year.

FINANCIAL POSITION

Shareholders' equity amounted to SEK 1,189 million (892), and the equity ratio was 36% (37%).

Cash and cash equivalents amounted to SEK 203 million (119). In addition, the Company has SEK 275 million (433) in unutilised credit facilities. Interest-bearing net debt amounted to SEK 650 million (473). The net debt/equity ratio was 55% (53%) at the end of the year.

The increase in net debt is mainly attributable to completed acquisitions.

CASH FLOW

Cash flow from operating activities was SEK 399 million (265). The increase can be credited to high earnings. Cash flow after net investments in property, plant and equipment (excluding company acquisitions) was SEK 332 million (208). Compared with the preceding year, cash flow was affected by a higher level of tied up capital resulting from an increase in net sales.

CAPITAL EXPENDITURES AND DEPRECIATION

The Group's net capital expenditures (excluding company acquisitions) totalled SEK 67 million (57). Depreciation of property, plant and equipment totalled SEK 63 million (54). Capital expenditures in company acquisitions amounted to SEK 307 million (157).

EMPLOYEES

The number of employees was 2,083 (1,758) at year-end, of whom approximately 265 were added through acquired companies. The average number of employees during the year was 1,929 (1,673).

ACQUISITIONS

The Group completed the following company acquisitions during the year, which were consolidated in 2007 for the first time.

Month acquired	Acquisition	Business area	Sales/SEK million*	No. of employees*
January	ES Hydagent AB	Flow Technology	60	20
February	Axelvalves AB SAV-Danmark Trading A/S	Flow Technology Flow Technology	36 65	5 26
April	Sigurd Sørum AS	Flow Technology	60	23
May	AluFlex System AB Carrab Industri AB	Industrial Components Special Products	70 26	42 27
August	Labkotec	Engineering & Equipment	60	33
September	Palmstiernas Svenska AB MWS Ventil Service AB	Flow Technology Flow Technology	35 24	10 14
October	Elra AS International Plastics Systems Ltd Recair Oy	Engineering & Equipment Flow Technology Engineering & Equipment	10 115 50	4 38 23
Total			611	265

Completed acquisitions

* Annual sales and number of employees at the time of acquisition.

Further information on completed company acquisitions can be found on page 10 of this year-end report.

ACQUISITIONS AFTER THE END OF THE FINANCIAL YEAR

Agreements have been signed to acquire all of the shares in Ammertech B.V., in Helmond, the Netherlands, and in Precision Products Ltd, in Chesterfield, UK. Ammertech is a leading technology trading company in the Benelux market in the area of bearings and transmission, with annual sales of approximately SEK 60 million.

Precision Products is a well established manufacturer of piston rings and supplies the international marine engine industry other industries in 48 countries, with annual sales of approximately SEK 70 million. Both companies are part of the Special Products business area as from January 2008.

PARENT COMPANY

The main function of Indutrade AB is to take responsibility for business development, major acquisitions, financing, business control and analysis. The Parent Company's sales, which consist exclusively of intercompany invoicing of services, amounted to SEK 1 million (1) for the year. The Parent Company's capital expenditures amounted to SEK 173 million (202) in subsidiaries and SEK 0 (1) in property, plant and equipment. The number of employees on 31 December was 8 (8).

RISKS AND UNCERTAINTIES

The Indutrade Group conducts business in 12 countries in northern Europe through some 80 companies. This spread, together with a large customer base in various industries and a large number of suppliers, mitigates the business and financial risks. In addition to the risks and uncertainties that are described in Indutrade's 2006 Annual Report, no significant risks or uncertainties are judged to have emerged or been eliminated.

Since the Parent Company is responsible for the Group's financing, it is subject to financing risk. The Parent Company's other activities are not subject to risks other than indirectly via subsidiaries. For a complete report on risks that affect the Group and Parent Company, please see the 2006 Annual Report.

RELATED-PARTY TRANSACTIONS

No transactions between Indutrade and related parties, which have significantly affected the Company's position and earnings, took place during the period.

ACCOUNTING PRINCIPLES

Indutrade reports in accordance with International Financial Reporting Standards (IFRS). This year-end report has been prepared in accordance with IAS 34 and RR 31. The Parent Company applies RR 32:06. The same principles of consolidation and calculation methods are used in this year-end report as those used in Indutrade's 2006 Annual Report and described under the section "Accounting principles and notes".

Starting 1 January 2007, the Group applies IFRS 7. Application of this standard has no impact on the Group's earnings or financial position and only entails the addition of certain disclosure requirements. The new interpretations IFRIC 7, 8, 9 and 10, and URA 43 have not had any impact on Indutrade's earnings or financial position.

DIVIDEND

The Board proposes a dividend of SEK 5.25 per share, corresponding to SEK 210 million. The proposed dividend is in line with Indutrade's dividend policy to pay a minimum of 50% of profit after tax over time.

Stockholm, 15 February 2008

Johnny Alvarsson President and CEO This report has not been reviewed by the Company's auditors.

Further information

For further information, please contact: Johnny Alvarsson, President and CEO, phone +46-(0)70 589 17 95.

Financial calendar

The 2007 Annual Report will be published in April 2008.

The Annual Report will be available on Indutrade's website starting on the date of publication.

The Annual General Meeting will be held in Stockholm on 24 April 2008.

The interim report for the period January–March 2008 will be published on 24 April 2008.

The interim report for the period January–June 2008 will be published on 4 August 2008.

The interim report for the period January–September 2008 will be published on 27 October 2008.

This report will be presented via conference call today at 11 a.m., and can be followed online at the following link:

http://www.financialhearings.com/hearing/financia1.nsf/(recordednew)/405B7C00FAA12ECAC12573DF 003C75AF?OpenDocument

Participants are welcome to call on tel. +46-8-5352 6458 or +44 20 7806 1966.

INDUTRADE CONSOLIDATED INCOME STATEMENT

– condensed
	2007	2006	2007	2006
SEK million	Oct.-Dec.	Oct.-Dec.	Jan.-Dec. Jan.-Dec.
Net sales	1,549	1,254	5,673	4,516
Cost of goods sold	-1,041	-837	-3,826	-3,027
Gross profit	508	417	1,847	1,489
Development costs	-6	-7	-20	-15
Selling costs	-282	-230	-972	-835
Administrative expenses	-69	-53	-250	-205
Other operating income and expenses	4	0	4	2
Operating profit	155	127	609	436
Financial income/expenses	-7	-5	-31	-20
Profit after financial items	148	122	578	416
Income tax	-39	-30	-159	-116
Net profit for the period attributable
to equity holders of the parent	109	92	419	300
Amortisation of intangible assets	-14	-8	-41	-24
Depreciation of property, plant and equipment	-18	-13	-63	-54
Operating profit before amortisation/impairment
intangible assets (EBITA)	169	135	650	460
Earnings per share, SEK 1)	2.73	2.30	10.48	7.50

1) Net profit for the period based on 40,000,000 shares. There is no dilutive effect.

Income and expenses reported directly against equity

Actuarial gains/losses	-1	10	6	10
Exchange rate differences on foreign operations	15	-10	24	-17
Tax on items reported directly against equity	0	-5	-2	-5
Total income and expenses reported directly against equity	14	-5	28	-12
Net profit for the year	109	92	419	300
Total reported income and expenses
for the year	123	87	447	288

BUSINESS AREAS

SEK million	Net sales			EBITA
	2007	2006	2007	2006	2007	2006	2007	2006
	Oct.-	Oct.-	Jan.-	Jan.-	Oct.-	Oct.-	Jan.-	Jan.-
	Dec.	Dec.	Dec.	Dec.	Dec.	Dec.	Dec.	Dec.
Engineering & Equipment	537	431	1,968	1,576	47	41	204	146
Flow Technology	437	300	1,474	1,073	43	26	145	93
Industrial Components	250	218	940	798	25	19	103	78
Special Products	337	311	1,322	1,094	61	59	234	179
Parent Company and Group items	-12	-6	-31	-25	-7	-10	-36	-36
Indutrade Group	1,549	1,254	5,673	4,516	169	135	650	460

KEY DATA

	2007	2007	2007	2007	2006
	Jan.-Dec.	Jan.-Sept.	Jan.-June	Jan.-March	Jan.-Dec.
Net sales, SEK million	5,673	4,124	2,753	1,286	4,516
Sales growth, %	25.6	26.4	26.8	26.1	18.2
EBITA, SEK million	650	481	314	139	460
EBITA margin, %	11.5	11.7	11.4	10.8	10.2
Operating capital, SEK million Return on operating capital, %	1,839	1,781	1,676	1,534	1,365
(12 mos)	40.6	38.7	37.2	37.1	36.9
Interest-bearing net debt, SEK million	650	715	720	537	473
Net debt/equity ratio, %	54.7	67.1	75.3	53.9	53.0
Equity ratio, %	36.3	35.2	32.5	36.6	37.4
KEY RATIOS PER SHARE 1)
Earnings per share, SEK	10.48	7.75	5.08	2.23	7.50
Equity per share, SEK	29.73	26.65	23.90	24.93	22.30
Cash flow from operating activities per share, SEK	9.98	4.43	1.93	0.38	6.63

1) Based on 40,000,000 shares, which corresponds to the number of shares outstanding as per 31 December 2007 and 2006. There is no dilutive effect.

INDUTRADE CONSOLIDATED BALANCE SHEET

– condensed
	2007	2006
SEK million	31 Dec.	31 Dec.
Goodwill	378	265
Other intangible assets	364	183
Property, plant and equipment	388	327
Financial assets	43	25
Inventories	936	719
Accounts receivable, trade	859	679
Other receivables	100	69
Cash and cash equivalents	203	119
Total assets	3,271	2,386
Equity	1,189	892
Long-term borrowings and pension obligations	470	356
Other non-current liabilities	198	123
Short-term borrowings	383	236
Accounts payable, trade	470	398
Other current liabilities	561	381
Total equity and liabilities	3,271	2,386

CHANGE IN GROUP EQUITY

	2007	2006
SEK million	Jan.-Dec.	Jan.-Dec.
Opening equity	892	714
Dividend1)	-150	-110
Actuarial pension effects	6	10
Tax effect on actuarial pension effects	-2	-5
Translation differences	24	-17
Net profit for the year	419	300
Closing equity	1,189	892

1) SEK 3.75 (2.75) per share.

INDUTRADE CONSOLIDATED CASH FLOW STATEMENT

– condensed

	2007	2006
SEK million	Jan.-Dec.	Jan.-Dec.
Cash flow from operating activities before change
in working capital	526	369
Change in working capital	-127	-104
Cash flow from operating activities	399	265
Net capital expenditures in non-current assets	-67	-57
Company acquisitions and divestments	-307	-157
Change in other financial assets	1	-
Cash flow from investing activities	-373	-214
Net borrowings	203	65
Dividend paid out	-150	-110
Cash flow from financing activities	53	-45
Cash flow for the period	79	6
Cash and cash equivalents at start of period	119	117
Exchange rate differences	5	-4
Cash and cash equivalents at end of year	203	119

ACQUISITIONS

Acquisitions in 2007

All of the shares were acquired in ES Hydagent AB, Axelvalves AB, SAV-Danmark Trading A/S, Sigurd Sørum AS, Carrab Industri AB, AluFlex System AB, Palmstiernas Svenska AB, MWS Ventil Service AB, Elra AS, International Plastic Systems Ltd and Recair Oy. In addition Wavin-Labko Oy's Net & Instrument division (Labkotec) was acquired.

Engineering & Equipment

Labkotec manufactures and sells alarm and measurement units, automation solutions and ice detection units. Annual sales amount to approximately SEK 60 million. Elra AS is a technology sales company focusing primarily on servo motors and bonding material. Annual sales amount to approximately SEK 10 million. Recair Oy, with annual sales of approximately SEK 50 million, is a leading manufacturer of air treatment systems in Finland.

Labkotec is included in the business areas as from mid-August, Elra from 1 October, and Recair from 1 November 2007.

Flow Technology

ES Hydagent, which designs and sells hydraulic systems for mobile industrial solutions, has annual sales of approximately SEK 60 million. Axelvalves is one of Scandinavia's leading suppliers of industrial valves to the process industry in Eastern Europe, with own brands. Annual sales amount to approximately SEK 36 million. SAV-Danmark Trading is a well established technology sales company with a broad product programme of couplings and valves in the heating and plumbing segment, with annual sales of approximately SEK 65 million. Sigurd Sørum is a well-known supplier in the Norwegian market, with a broad range of products in the areas of valves, couplings and instruments. Its customers are primarily in the process, oil, gas and offshore industries. Sigurd Sørum has annual sales of approximately SEK 60 million. Palmstiernas Svenska supplies products and systems for measurement, control and supervision of industrial processes, with annual sales of approximately SEK 35 million. MWS Ventil Service is one of Sweden's most modern and comprehensive workshops for valve maintenance and service, with annual sales of approximately SEK 24 million. International Plastic Systems Ltd, with annual sales of approximately SEK 115 million, is one of the UK's leading suppliers of plastic piping systems and valves, with a broad product range of installation tools and welding equipment.

ES Hydagent is consolidated as from 1 January 2007, while Axelvalves and SAV-Danmark Trading are consolidated as from 1 February 2007, and Sigurd Sørum from 1 April. MWS Ventil Service is consolidated as from 1 September, Palmstiernas Svenska from 15 September, and International Plastic Systems from 1 October 2007.

Industrial Components

AluFlex sells comprehensive building kit systems based on aluminium profiles, as well as conveyor and linear systems. The company has annual sales of SEK 70 million.

AluFlex was consolidated in the business area starting 1 May.

Special Products

Carrab Industri, with annual sales of SEK 26 million, manufactures stamped sheet metal parts and industrial springs.

Carrab Industri is included in the business area starting 1 May.

Acquired assets in ES Hydagent AB, Axelvalves AB, SAV-Danmark Trading A/S, Sigurd Sørum AS, Carrab Industri AB, AluFlex System AB, Labkotec, Palmstiernas Svenska AB, MWS Ventil Service AB, Elra AS, International Plastic Systems Ltd and Recair Oy.

Since individual disclosures on the acquisitions are insignificant, they are presented here in aggregate form. The cost of customer lists and agencies has been valued at one year's contribution margin and is stated in the balance sheet under agencies, trademarks, customer lists, licenses, etc. and is amortised over a period of ten years. Goodwill is justified by the good profitability of the acquired companies.

Preliminary acquisition calculation

SEK million
Purchase price, incl. earn-out payment	391

	Book	Actual value	Actual
Acquired assets	value	adjustment	value
Goodwill	-	111	111
Agencies, trademarks, customer lists,
licences, etc.	1	208	209
Property, plant and equipment	35	14	49
Financial assets	5	-	5
Inventories	88	-	88
Other current assets	108	-	108
Cash and cash equivalents	38	-	38
Deferred tax liability	-4	-51	-55
Interest-bearing loans	-34	-	-34
Other operating liabilities	-128	-	-128
	109	282	391

Cash flow impact
Purchase price, excl. earn-out payment	329
Cash and cash equivalents in acquired companies	-38
Earn-out payments pertaining to previous years' acquisitions	16
	307

Effect of completed acquisitions

SEK million			Net sales		EBITA
Company	Business area	Oct.-Dec.	Jan.-Dec.	Oct.-Dec.	Jan.-Dec.
Gedevelop AB, Spinova AB,
Damalini AB, Carrab Industri AB,	Special Products	6	113	1	19
ES Hydagent AB, Axelvalves AB,
SAV-Danmark Trading A/S, Sigurd Sørum AS, MWS Ventil Service AB, Palmstiernas Svenska AB
and International Plastic Systems Ltd	Flow Technology	122	276	14	31
Tribotec AB and Aluflex System AB	Industrial Components	23	85	1	8
PRP Plastic Oy, Labkotec, Elra AS and Recair Oy	Engineering & Equipment	33	52	4	7
Effect on Group		184	526	20	65
Acquisitions carried out in 2006		-	141	-	23
Acquisitions carried out in 2007		184	385	20	42
Effect on Group		184	526	20	65

If the acquired units had been consolidated as from 1 January 2007, net sales would have amounted to SEK 1,553 million for the period October–December and SEK 5,886 million for the full year. EBITA would have amounted to SEK 171 million for the period October–December and SEK 682 million for full year.

Acquisitions after the end of the financial year

Agreements have been signed to buy all of the shares in Ammertech B.V., in Helmond, the Netherlands, and in Precision Products Ltd, in Chesterfield, UK. Ammertech is a leading technology trading company in the Benelux market in the area of bearings and transmission, with annual sales of approximately SEK 60 million.

Precision Products is a well established manufacturer of piston rings and supplies the international marine engine industry other industries in 48 countries, with annual sales of approximately SEK 70 million. Both companies are part of the Special Products business area as from January 2008.

Acquired assets in Ammertech B.V. and Precision Products Ltd

Preliminary acquisition calculation
SEK million
Purchase price, incl. earn-out payment		79
		Actual
	Book	value	Actual
Acquired assets	value	adjustment	value
Goodwill	-	15	15
Agencies, trademarks, customer lists,
licences, etc.	-	30	30
Property, plant and equipment	29	-	29
Financial assets	1	-	1
Inventories	23	-	23
Other current assets	26	-	26
Cash and cash equivalents	5	-	5
Deferred tax liability	-	-8	-8
Interest-bearing loans	-19	-	-19
Other operating liabilities	-23	-	-23
	42	37	79

Agencies, trademarks, customer lists, licences, etc. will be amortised over a ten-year period. The acquisitions have affected cash flow in the amount of SEK 71 million.

PARENT COMPANY INCOME STATEMENT

– condensed
	2007	2006	2007	2006
SEK million	Oct.-Dec.	Oct.-Dec.		Jan.-Dec. Jan.-Dec.
Net sales	1	1	1	1
Gross profit	1	1	1	1
Administrative expenses	-10	-9	-39	-35
Other income and expenses	1	-1	1	-1
Operating profit	-8	-9	-37	-35
Financial income/expenses	-1	-1	-3	-1
Profit from participations in Group companies	279	182	427	293
Profit after financial items	270	172	387	257
Income tax	-78	-48	-69	-41
Net profit for the period	192	124	318	216
Depreciation of property, plant and equipment	-1	-1	-1	-1

PARENT COMPANY BALANCE SHEET

– condensed
	2007	2006
SEK million	31 Dec.	31 Dec.
Property, plant and equipment	2	2
Financial assets	950	773
Current receivables	567	371
Cash and cash equivalents	9	15
Total assets	1,528	1,161
Equity	743	575
Non-current liabilities	296	284
Provisions	38	34
Current interest-bearing liabilities	378	225
Current noninterest-bearing liabilities	73	43
Total equity and liabilities	1,528	1,161

DEFINITIONS

Earnings per share	Net profit for the period divided by the average number of shares outstanding
EBITA	Operating profit before amortisation of intangible assets
EBITA margin	EBITA as a percentage of net sales for the period
Equity ratio	Shareholders' equity as a percentage of total assets
Gross margin	Gross profit divided by net sales
Intangible assets	Goodwill, agencies, trademarks, customer lists, licences and leaseholds
Interest-bearing net debt	Interest-bearing liabilities, incl. pension liability less cash and cash equivalents
Net capital expenditures	Purchases less sales of intangible assets, and of property, plant and equipment, excluding those included in acquisitions and divestments of subsidiaries and operations
Net debt/equity ratio	Interest-bearing net debt divided by shareholders' equity
Operating capital	Interest-bearing net debt and shareholders' equity
Property, plant and equipment	Buildings, land, machinery and equipment
Return on operating capital	EBITA as a percentage of average operating capital