Profilgruppen — Interim / Quarterly Report 2012

Feb 26, 2013

Year-end report January 1 – December 31 2012 Åseda, 26 February, 2013

Further weakening of demand in the fourth quarter

Fourth quarter

• Turnover MSEK 161.7 (195.5), down 17 percent compared to previous year
• Operating profit MSEK 6.4 (1.4) after one-off items amounting to net MSEK 17.9 (3.4).
• Net income MSEK 9.8 (-0.6)
• Cash flow from current operations after one-off items MSEK 31.2 (-6.5)
• Earnings per share SEK 1.99 (-0.14)

Full year

• Turnover MSEK 786.0 (836.7), down 6 percent from previous year
• Operating profit MSEK 30.1 (17.7) after one-off items amounting to net MSEK 27.2 (1.9)
• Net income MSEK 23.0 (7.5)
• Cash flow from current operations after one-off items MSEK 51.2 (21.6).
• Earnings per share SEK 4.66 (1.51)

Anders Frisinger, President and CEO of ProfilGruppen, says:

"The demand weakened further in the fourth quarter and our competitiveness was challenged by the strong Swedish krona. Even though the reduction of working hours for all employees has contributed to a cost reduction, the operating result for the last quarter of the year was negative excluding positive one-off items.

For more information, please contact: Anders Frisinger, President and CEO Peter Schön, CFO Mobile +46 (0)70-585 12 38 Mobile +46 (0)70-339 89 99 anders.frisinger@profilgruppen.se peter.schon@profilgruppen.se

This information is published in accordance with applicable laws, listing agreements and regulations. The information was submitted for publication at 14.00 CET on February 26, 2013.

ProfilGruppen AB (publ), Box 36, SE-360 70 Åseda, Sweden Phone +46 474-550 00, Corporate ID no. 556277-8943, www.profilgruppen.se

ProfilGruppen is a supplier of complex customised aluminium extrusions and components. For income, financial position, key figures and other facts about the Group, refer to pages 6-14. Current information and photographs for free publication are available at www.profilgruppen.se.

Year-end report from ProfilGruppen AB (publ), January 1 – December 31, 2012

Market

The European market for aluminium extrusions has continued to weaken also in the fourth quarter 2012, however with a decreasing decline pace. In the transportation segment also the automotive sub-segment is now showing weaker demand, although the decline is smaller than the decrease of car production itself. This is a consequence of the ongoing material substitution towards aluminium and mix shift towards car models with higher aluminium contents. The building and construction segment is showing a decline even though some markets in northern Europe are showing stable volumes compared to the corresponding period previous year.

In the latest forecast from the European Aluminium Association (EAA), the market for aluminium extrusions is assessed to have decreased by approximately nine percent for the full year of 2012 compared to 2011.

The price of aluminium raw material on London Metal Exchange (LME) has decreased by slightly less than three percent during the fourth quarter and amounted to slightly less than USD 2 100 per ton at the end of the year, which is however four percent higher than at the preceding year-end.

Turnover

The turnover of the Group amounted to MSEK 786.0 (836.7), a decrease by 6 percent compared to the previous year. The delivery volume was 18,700 tonnes (19,000) of aluminium extrusions, a decrease by 2 percent compared to the previous year.

Turnover per country, MSEK	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Sweden	83.3	102.7	403.5	424.1
Germany	15.9	25.2	94.9	112.1
Norway	21.3	15.4	85.4	60.1
Denmark	6.3	6.7	32.5	33.3
Poland	12.1	13.6	66.5	80.9
United Kingdom	4.8	11.8	26.6	45.3
Other countries	18.0	20.1	76.6	80.9
TOTAL	161.7	195.5	786.0	836.7

The share of exports amounted to 49 percent (50) of volume, and 49 percent (49) of turnover.

Income from the Swedish market decreased by 19 percent for the fourth quarter 2012 compared to the corresponding period previous year. Income from the building and construction segment showed a decrease by slightly more than four percent and the general engineering segment decreased by approximately eight percent. Income from the transportation segment fell by slightly more than 12 percent and income from the electrical engineering segment showed a decrease by slightly more than 37 percent, all compared to the corresponding period previous year.

Income from the export markets decreased overall and the total decline amounted to more than 15 percent for the fourth quarter compared to the corresponding period last year. However, deliveries to Norway increased by as much as 38 percent, related to strong demand from individual customers in the transportation segment. Deliveries to the United Kingdom decreased by almost 60 percent, mainly related to the phasing out of a former customer.

Turnover per sector, MSEK	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Electrical engineering	23.9	34.4	134.7	162.8
Transportation	58.3	66.8	281.4	288.8
Building and construction	28.7	29.6	128.5	122.8
Domestic and office equipment	15.8	19.1	64.0	76.2
General engineering	24.1	29.0	116.2	121.2
Other industries	10.9	16.6	61.2	64.9
TOTAL	161.7	195.5	786.0	836.7

Income from the segments other industries and electrical engineering show the steepest declines with decreases by 34 and 31 percent respectively for the fourth quarter to the corresponding period previous year. General engineering and domestic and office equipment show decreases by approximately 17 percent. The transportation segment show a somewhat smaller decrease, slightly less than 13 percent. For the building and construction segment we see a relatively stable development with a decrease of the deliveries by three percent.

During the year, the Group manufactured 18,900 tonnes (18,800) of aluminium extrusions.

Comments on profit

The operating profit/loss for the year amounted to MSEK 30.1 (17.7), which is equivalent to an operating margin of 3.8 percent (2.1). The result has been affected by one-off items of net MSEK 27.2. These one-off items comprise an insurance compensation of MSEK 19.5 related to the fire hitting the company in 2011, compensation for court disputes amounting to MSEK 9.4 and a cost of MSEK 1.7 related to the reorganisation of the marketing organisation. Last year's result was affected by one-off items of net MSEK 1.9 comprising accruals for the reinvestment after the fire amounting to MSEK 16.0 and cost for staff reduction amounting to MSEK 14.1.

The operating profit excluding one-off items amounted to MSEK 2.9 (MSEK 15.8). The decrease in profit is mainly originating from the second half-year as the delivery volumes went down seven percent compared to previous year and the strengthening of the Swedish krona had a negative impact on competitiveness and profit. In order to safeguard the result the company made an agreement with the unions to reduce the number of working hours for all employees starting 1 October, and to terminate the fixed-term contracts. The aim of this agreement, apart from cost reductions, was to retain competence in the company,

The profit/loss after financial items amounted to MSEK 23.0 (10.6). The profit/loss after tax amounted to MSEK 23.0 (7.5).

Earnings per share totalled SEK 4.66 (1.51). The average number of shares in thousands was 4,933 (4,933).

The return on capital employed amounted to 10.3 percent (5.6).

The fourth quarter

Turnover amounted to MSEK 161.7 (195.5). The delivery volume in the quarter was 3,850 tonnes (4,500) of aluminium extrusions, and production was 3,950 tonnes (4,500). The share of exports amounted to 49 percent (49) of volume, and 47 percent (47) of turnover.

The operating profit for the fourth quarter amounted to MSEK 6.4 (1.4). The result was positively affected by one-off items amounting to net MSEK 17.8, whereof insurance compensation related to the fire in 2011 amounting to MSEK 19.5 and restructuring costs amounting to MSEK 1.7. The corresponding period previous year was positively affected by insurance compensation amounting to MSEK 12.4.

The profit after financial items amounted to MSEK 5.0 (-0.5). Earnings per share totalled SEK 1.99 (-0.14)

During the fourth quarter the production unit for component anodising was divested, which however does not have any impact on the result for the fourth quarter.

Investments and divestments

Investments during the year amounted to MSEK 13.3 (31.2). MSEK 18.1 of last year's investments referred to rebuild the facility damaged by the fire.

The divestment of the production unit for component anodising means that fixed assets have been sold. ProfilGruppen still owns the property in question and a finance lease with the purchaser of the business has been concluded. Under the agreement, the buyer has the option, at any time during the contract term, 10 years, to buy the property. In the statement of financial position the agreement is reported as a lease receivable and the property as sold.

Financing and liquidity

Cash flow from current operations including one-off items amounted to MSEK 51.2 (21.6) and cash flow after investments was MSEK 44.8 (-7.8). The one-off items has had a positive impact on cash flow amounting to MSEK 43.9 and are mainly consisting of insurance compensation, compensation related to divestment of operations and compensation for court disputes.

The cash flow from current operations including one-off items for the fourth quarter amounted to MSEK 31.2 (-6.5). The one-off items amounts to MSEK 38.2 and are mainly consisting of insurance compensation and compensation related to divestment of operations.

The balance sheet total as of 31 December 2012 was MSEK 448.7 (513.1).

Net debt amounted to MSEK 99.8 (144.1) as of 31 December 2012 and the net debt/equity ratio was 0.55 (0.89).

Personnel

The average number of Group employees during the period was 355 (391). The number of Group employees as of 31 December 2012 totalled 308 (371).

Significant risks and uncertain factors

The company's risks and risk management have not changed significantly since the publishing of the 2011 annual report.

Outlook for 2013

The outlook for 2013 is characterised by continued macroeconomic uncertainty.

Change in company management

Anders Frisinger assumed the position as new President and CEO 1 July 2012 in accordance with a press release from 5 March 2012.

Annual General Meeting 2013

The AGM 2013 will take place Thursday 11 April 2012 at 15.00 CET. All shareholders will then be welcome at Folkets Hus in Åseda.

Dates for financial information

Financial information for 2013 will be provided on a quarterly basis. Interim report, 3 months 24 April 2013 14.00 CET Interim report, 6 months 19 July 2013 14.00 CET Interim report, 9 months 25 October 2013 14.00 CET

Annual report

The annual report for 2012 will be distributed by post to all shareholders during March 2013 and will be available in the company's reception and on the company's website from 18 March 2013.

Åseda, 26 February 2013

The Board of Directors, ProfilGruppen AB (publ) Org no 556277-8943

This report has not been submitted for checking by the company´s auditors.

Statement of comprehensive income

The Group, MSEK	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Net turnover	161.7	195.5	786.0	836.7
Cost of goods sold	-156.2	-182.3	-716.5	-754.6
Gross margin	5.5	13.2	69.5	82.1
Other operating revenues	20.8	11.0	30.5	58.2
Selling expenses	-12.7	-12.2	-40.5	-54.6
Administrative expenses	-7.2	-8.6	-29.4	-44.4
Other operating expenses	0.0	-2.0	0.0	-23.6
Operating profit/loss	6.4	1.4	30.1	17.7
Financial income	0.1	0.0	0.4	0.3
Financial expenses	-1.5	-1.9	-7.5	-7.4
Net financial income/expense	-1.4	-1.9	-7.1	-7.1
Income after financial items	5.0	-0.5	23.0	10.6
Tax	4.8	-0.1	0.0	-3.1
Net income for the period	9.8	-0.6	23.0	7.5
Other comprehensive income
Changes in hedging reserve	-0.5	1.5	-1.5	-6.0
Translation differences Other, reported directly	0.0	-0.1	-0.2	0.0
against equity	0.0	0.0	0.0	0.0
Comprehensive income for the period	9.3	0.8	21.3	1.5
Earnings per share (before and after dilution), SEK	1.99	-0.14	4.66	1.51
Average number of shares, thousands	4 933	4 933	4 933	4 933
Depreciation and write down of fixed assets
Intangible fixed assets	-0.4	0.0	0.0	0.0
Land and buildings	1.1	1.0	3.8	5.0
Machinery and equipment	7.2	5.9	24.3	25.9
Total	7.9	6.9	28.1	30.9
of which write-down	0.7	0.0	0.7	2.7

Statement of financial position

The Group, MSEK	31 December 2012	31 December 2011
Assets
Fixed assets
Intangible fixed assets	10.0	10.0
Tangible fixed assets	218.7	244.1
Financial fixed assets	2.2	0.2
Total fixed assets	230.9	254.3
Current assets
Inventories	106.0	115.6
Current receivables	110.1	141.3
Liquid assets	1.7	1.9
Total current assets	217.8	258.8
Total assets	448.7	513.1
Shareholders' equity and liabilities
Shareholders' equity	182.7	161.4
Long-term liabilities
Interest-bearing liabilities	56.6	67.9
Interest-free liabilities	31.0	42.0
Total long-term liabilities	87.6	109.9
Short-term liabilities
Interest-bearing liabilities	44.9	78.1
Interest-free liabilities	133.5	163.7
Total short-term liabilities	178.4	241.8
Total shareholders' equity and liabilities	448.7	513.1

Pledged assets and contingent liabilities

Property mortgages	84.8	84.8
Floating charges	174.0	174.0
Shares in subsidiaries	207.7	195.9
Trade receivables pledged as collateral	91.4	101.4
Guarantees for other companies	0.7	0.7
Guarantee commitments FPG/PRI	0.2	0.2

Statement of changes in equity

The Group, MSEK	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Opening balance	173.4	160.6	161.4	167.3
Dividend	0.0	0.0	0.0	-7.4
Comprehensive income for the period	9.3	0.8	21.3	1.5
Closing balance	182.7	161.4	182.7	161.4

Statement of cash flows

The Group, MSEK	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Operating cash flow 1)	10.4	4.3	39.6	36.0
Working capital changes	20.8	-10.8	11.6	-14.4
Cash flow from operating activities	31.2	-6.5	51.2	21.6
Cash flow from investing activities	6.6	-5.4	-6.4	-29.4
Cash flow from financing activities	-38.9	11.7	-44.5	-33.4
Cash flow for the period	-1.1	-0.2	0.3	-41.2
Liquid assets. opening balance	2.4	2.4	1.9	43.2
Translation differences in liquid assets	0.4	-0.3	-0.5	-0.1
Liquid assets. closing balance	1.7	1.9	1.7	1.9

1) Cash flow from operating activities after one-off items and before working capital changes.

Accounting Principles

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Standards Council´s RFR 2 Accounting for Legal Entities. The accounting principles applied are identical to the ones used for the latest annual report.

Key ratios

The Group	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Net turnover, MSEK	161.7	195.5	786.0	836.7
Income before depreciation, MSEK	14.3	8.3	58.2	48.6
Operating income/loss, MSEK	6.4	1.4	30.1	17.7
Operating margin, %	4.0	0.7	3.8	2.1
Income after financial items, MSEK	5.0	-0.5	23.0	10.6
Profit margin, %	3.1	-0.3	2.9	1.3
Return on equity, %	22.1	-1.7	13.4	4.5
Return on capital employed, %	8.8	1.8	10.3	5.6
Cash flow from operating activities, MSEK	31.2	-6.5	51.2	21.6
Investments, MSEK	2.6	7.7	13.3	31.2
Liquidity reserve, MSEK	-	-	105.2	68.0
Net debt, MSEK Interest-bearing liabilities and interest-bearing provisions, MSEK	- -	- -	99.8 101.5	144.1 146.0
Net debt/equity ratio	-	-	0.55	0.89
Total assets, MSEK	-	-	448.7	513.1
Equity ratio, %	-	-	40.7	31.5
Capital turnover	2.2	2.6	2.7	2.6
Proportion of risk-bearing capital, %	-	-	47.6	39.6
Interest coverage ratio	4.1	0.7	4.0	2.4
Average number of employees	321	378	355	391
Net turnover per employee (average), TSEK	504	517	2 214	2 140
Income after fin, per employee (average), TSEK	15	-1	65	27
Average number of shares, thousands (No dilution,)	4 933	4 933	4 933	4 933
Number of shares, end of period, thousands	4 933	4 933	4 933	4 933
Earnings per share, SEK	1.99	-0.14	4.66	1.51
Equity per share, SEK	-	-	37.05	32.72

Definitions are given in ProfilGruppen's Annual Report 2011. Rounding differences may occur. When not specified the information regards the total Group.

The parent company

The turnover of the parent company amounted to MSEK 23.0 (24.3) and comprised, to 99.6 percent, payments for rents and services from companies in the Group. Profit/loss after financial items amounted to MSEK 19.0 (12.7).

There were no investments made in the parent company during the year. Last year's investments amounting to MSEK 5.3 were made in real estate. As of the end of the year one of the company's properties is leased out. In accordance to the agreement the tenant has the right to purchase the property at any time but the property is still in the Balance sheet of the parent company.

The parent company's interest-bearing liabilities amounted to MSEK 33.7 (43.3) as of 31 December 2012. The change in the parent company's liquidity during the period has been MSEK 0 (0).

The parent company employs one (1) person.

The parent company's risks and uncertain factors have not changed significantly compared to that described in the 2011 annual report.

No significant related transactions apart from above mentioned transactions with subsidiaries have been implemented during the period.

Income Statement – the parent company

Parent company, MSEK	Q 4 2012	Q 4 2011	Q 1-4 2012	Q 1-4 2011
Turnover	6.2	5.7	23.0	24.3
Cost of goods sold	-1.0	-2.2	-3.6	-4.8
Gross margin	5.2	3.5	19.4	19.5
Other operating revenues	0.0	1.4	9.4	2.8
Administrative expenses	-1.7	-1.4	-5.1	-8.4
Other operating expenses	0.0	1.3	0.0	0.0
Operating income	3.5	4.8	23.7	13.9
Interest income	0.0	4.0	0.3	4.0
Interest expenses	-3.5	-4.0	-5.0	-5.2
Income after financial items	0.0	4.8	19.0	12.7
Appropriations	-1.0	1.7	-1.0	1.7
Income before tax	-1.0	6.5	18.0	14.4
Tax	0.9	-1.7	-4.2	-3.9
Net income for the period	-0.1	4.8	13.8	10.5

Balance sheet – the parent company

Parent company, MSEK	31 December 2012	31 December 2011
Assets
Tangible assets
Tangible fixed assets	91.8	95.3
Financial assets	108.9	108.9
Total fixed assets	200.7	204.2
Current assets
Current receivables	1.0	1.4
Cash and bank balances	0.4	0.4
Total current assets	1.4	1.8
Total assets	202.1	206.0
Equity and liabilities
Equity	53.8	40.0
Untaxed reserves	24.1	23.1
Provisions for taxes	3.0	3.3
Long-term liabilities	16.3	25.8
Current liabilities	104.9	113.8
Total equity and liabilities	202.1	206.0

The Group

The Group

Brief facts about the Group

• ProfilGruppen AB in Åseda, Småland in Sweden develops, manufactures and delivers customised extrusions and components in aluminium.
• The company has customers in several European countries and during 2012 49 percent of the volume was exported.
• Aluminium extrusions are used within many industries, for example construction, automotive industry, telecommunications/electronics and furnishings.
• The manufacture of extrusions takes place on three modern press lines at the company's facilities at ProfilGruppen Extrusions AB. Processing like cutting processing, surface treatment, friction stir welding, bending and assembly also takes place at the company´s own facilities.
• The company cooperates with around ten regional suppliers who process products on behalf of ProfilGruppen.
• The company is quality-certified in accordance with ISO/TS 16949, ISO 9001 and ISO 14001.
• ProfilGruppen AB was listed on the Stockholm Stock Exchange in June 1997 and is listed as Small Cap.