Interim report January-September 2020

Third quarter

First nine months of the year

Significant events in the third quarter

full-year 2019
370.6
32.0
8.6
20.8
33.5
0.87

CEO's comments

During the third quarter, we had an operating profit (EBIT) of SEK 14.4 million and sales amounting to SEK 94.5 million, which gives an operating margin of 15.3 percent.

Sales during the quarter are slightly lower, 6.5 percent, compared with the previous year and operating profit is 14.0 percent lower. This, together with the record-breaking first half-year, we have had growth of 10.3 percent and an operating profit of SEK 46.1 million during the first nine months, which corresponds to an operating margin of 15.1 percent and an increase in operating profit of SEK 15.6 million.

A stable third quarter for the Group, despite having temporarily slightly lower volumes on the construction side than planned, both in Sweden and in the United Kingdom. The reason for the lower volumes is that some projects have been moved forward in time. For the transport side, where we were involved in many track replacements during the quarter, has shown a strong quarter.

I am delighted that during the quarter we completed our innovation, the MPV, a batterypowered maintenance machine. We are the first in the world with this type of machine with this battery capacity for the railway. We are at the forefront of development and I am convinced that these are the maintenance machines of the future. It is great that our innovative solutions contribute to making the already green railway even greener.

On the construction side in Sweden, we have been busy with preparatory work with cable lowering for upcoming track replacements. During the quarter, we carried out work on the following sections Borås - Varberg, Borås - Herrljunga, Bankeryd - Jönköping, Gävle - Åänge, and Laxå - Kil.

Construction Sweden has had good utilisation until July 2020. In August, we had a lower utilisation rate which then increased again in September, where we worked with cable management prior to the track replacements on the section between Fagersta - Ludvika. We have three machines working there and the project runs until the middle of November.

Continued work is underway with sales and utilisation of the machines for the remaining part of the autumn of 2020. For 2021, planning is currently underway together with Trafikverket in the framework agreement we have with them. The utilisation rate for 2021 is good as there is a lot of preparatory work to be carried out. This is an unusually good foresight for our operations on the construction side in Sweden.

Railcare and Trafikverket have entered into a letter of intent regarding the continued snow removal and snow melters. The previous contract expired in the spring of 2020 and while waiting for the new contract to be finalised and signed, this letter of intent applies. The letter of intent confirms that Trafikverket intends to sign an agreement that runs for two years and with the option of another three-years. The agreement will take effect on 15 November 2020, the number of machine units in the agreement is the same as previous agreements.

Segment Transport Scandinavia showed a strong third quarter. During the quarter, we had good utilisation during the summer and autumn's various track replacements. Borås -Hillared, Gävle, Avesta / Krylbo - Hedemora, Öxnered - Håkanstorp, Helsingborg -Teckomatorp, Bankeryd - Jönköping and these jobs continue until and the end of October.

During the quarter, we also transported iron ore for Kaunis Iron between Pitkäjärvi and Narvik which went according to plan.

On 12 June, we started running ore transports for LKAB, the project has now been extended to 31 December 2020. Between Svappavaara and Kiruna, we run two cycles per day with 3,500 tonnes of ore per cycle.

During the quarter, we have planned for the start of a project to keep contingency locomotives in Borlänge, where the customer is Trafikverket. The project started on 26 October 2020 and the contract is for three years and with two option years.

In the Construction Abroad segment, we had lower utilisation during the third quarter than we normally have during a third quarter. Sales and planning are in full swing for the rest of 2020 and 2021, new orders are continually being received.

During the quarter, we performed work for Network Rail for the routes of London North West, Scotland, London North East and Midlands, and London South East.

In Norway, we have received an order to rent a Railvac with operators starting 6 October 2020, the rental is for two weeks. In Finland, we have received an order for ballast exchange in switches for two weeks in October. The work will be carried out with our Finnish-adapted Railvac.

During the third quarter, the Machine Sales segment had full focus on completing the prototype of the MPV. It is now ready to be tested in the workshop in Skelleftehamn, Sweden, and then begin working in the spring of 2021. On 5 October 2020, we had the world premiere of the MPV, the world's largest battery-powered maintenance machine for the railway. The unveiling was carried out at the head office in Skelleftehamn, Sweden by Minister of Infrastructure Tomas Eneroth. Minister of Employment Eva Nordmark, and Västerbotten's Governor Helene Hellmark Knutsson. There is great interest in our latest innovation, the emission-free battery-powered Multi-Purpose Vehicle (MPV), around the world.

Trafikverket has announced major investments going forward in railway maintenance with a focus on planned maintenance, such as track and switch replacements, and ballast exchanges, ie work that is completely in line with what our machinery can offer. Trafikverket's national plan extends ten years ahead and the volumes for railway maintenance will increase further in the future. In addition, the Government has decided to allocate an extra SEK 700 million to Trafikverket for extended maintenance work due to Covid-19 and an additional investment of SEK 500 million annually between 2021-2023 for maintenance of state railways throughout the countryl 2.

We did not have any canceled work due to Covid-19, nor any other major disruptions for the company. The railway is a critical function that must be kept running to transport people and goods.

We have a stable order book and see a high demand in the market. Our customers show great investment plans for the railway for many years to come and governments in different countries are currently investing extra in railway maintenance to boost the economy during the pandemic, but also because the railway is a critical function that has made the railway a greater focus.

On 19 October, we announced that Mattias Remahl will become Railcare's new CFO and Vice President in a new combination position. Railcare is constantly evolving and it is pleasing that Mattias Remahl has chosen to be part of our team. Mattias has the experience we are looking for when it comes to Railcare's next CFO and Vice President. Ulf Marklund will remain as Managing Director of Railcare Machine after the handover has taken place to Mattias. I want to welcome Mattias to Railcare and I look forward to working together.

¹ https://www.regeringen.se/pressmeddelanden/2020/05/storsatsning-pa-jarnvags-och-vagunderhall-i-hela-landet/ 2 https://www.regeringen.se/pressmeddelanden/2020/09/satsning-pa-okat-underhall-av-jarnvag/

A record strong first half-year where we follow up with a stable and good third quarter. Production is going according to plan and we have high pressure in sales and marketing. We have a new product with our battery technology on the railway, which is unique and new for the railway industry1.

With innovative solutions for the railway and with our staff as our main resource, we are building the Railcare of the future.

Daniel Öholm CEO

⁴ https://www.epirocgroup.com/se/media/corporate-press-releases/2020/20201005-epirocs-partner-railcare-lanserat-borjarnvagsunderhall

Financial summary – Railcare Group

Net sales

Operating expenses

Operating profit

Net profit/loss for the period

Cash flow

Equity/assets ratio

Employees

Financial summary - business segments

The segment's net sales also include internal sales between the segments.

Construction Sweden

Net sales within Segment Construction Sweden decreased by 37.4 per cent in the third quarter of 2020, compared with the corresponding period in the preceding year, and amounted to SEK 29.9 million (47.7). The loss after financial items decreased compared with the previous year and amounted to SEK 0.1 million (profit 9.1).

During the quarter, the segment experienced lower utilisation of machines for preparatory work ahead of track replacements compared with the preceding year due to some projects being postponed until 2021. This resulted in lower sales, as well as lower profit. The utilisation of machines in the lining operations has been low.

Net sales decreased by 8.3 per cent in January-September 2020 compared with the corresponding period last year and amounted to SEK 118.8 million (129.5). Profit after financial items decreased compared with the preceding year and amounted to SEK 11.1 million (17.9).

Amounts in SEK thousands. unless otherwise stated	Jul-Sep 2020	Jul-Sep 2019	Change, 00	Jan-Sep 2020	Jan-Sep 2019	Change, 70
Net sales	29,866	47,699	-37.4	118,768	129,502	-8.3
Profit/loss after financial items	-79	9.128	-100.9	11,098	17.863	-37.9
Net margin, %	-0.3	19.1	-19.4	9.3	13.8	-4.5

Key financial ratios and figures - Construction Sweden

Construction Abroad

Net sales within Segment Construction Abroad decreased by 31.4 per cent in the third quarter of 2020, compared with the corresponding period in the preceding year, and amounted to SEK 10.6 million (15.5). The loss after financial items amounted to SEK 0.4 million (profit 0.5).

During the quarter, the segment experienced lower utilisation of machines compared with the preceding year due to some projects being postponed. This resulted in lower sales, as well as lower profit.

Net sales decreased by 8.1 per cent in January-September 2020 compared with the corresponding period last year and amounted to SEK 46.3 million (50.4). Profit after financial items increased compared with the previous year and amounted to SEK 2.1 million (1.8).

Key financial ratios and figures – Construction Abroad

Amounts in SEK thousands, unless otherwise stated	Jul-Sep 2020	Jul-Sep 2019	Change, 00	Jan-Sep 2020	Jan-Sep 2019	Change, To
Net sales	10,613	15,479	-31.4	46.309	50.367	-8.1
Profit/loss after financial items	-420	471	-189.2	2,134	1.810	17.9
Net margin, %	-4.0	3.0	-7.0	4.6	3.6	1.0

Transport Scandinavia

Net sales within the Transport Scandinavia segment increased by 25.8 per cent in the third quarter of 2020, compared with the corresponding quarter last year and amounted to SEK 56.7 million (45.1). Profit after financial items amounted to SEK 11.8 million (4.6). The higher sales were mainly attributable to the increased utilisation of machines in the regular transport operations. All parts of the segment have, however, contributed to the increase in sales as well as the higher profit. Repair and maintenance costs were lower compared with the preceding year.

Net sales increased by 11.1 per cent in the period January-September 2020 compared with the corresponding period last year and amounted to SEK 137.1 million (123.4). Profit after financial items increased compared with the previous year and amounted to SEK 18.8 million (7.1).

Key financial ratios and figures - Transport Scandinavia

Amounts in SEK thousands, unless otherwise stated	Jul-Sep 2020	Jul-Sep 2019	Change, 00	Jan-Sep 2020	Jan-Sep 2019	Change, 90
Net sales	56,728	45,088	25.8	137,066	123,379	11.1
Profit/loss after financial items	11,772	4.638	153.8	18.829	7,110	164.8
Net margin, %	20.8	10.3	10.5	13.7	5.8	7.9

Machine Sales

In Segment Machine Sales, net sales for the third quarter of 2020 amounted to SEK 7.1 million (0.8). Profit after financial items amounted to SEK 1.4 million (loss 0.2).

The increased sales and improved profit are attributable to internal machine rentals and internal workshop services, alongside sales of spare parts to the aftermarket.

The innovative emissions-free, battery-powered MPV (Multi Purpose Vehicle) was shown to the press in early October 2020. Development and design have progressed during the quarter and will continue with the objective of having the machine in operation by the spring of 2021. The MPV is being reported under Construction in progress until ready for use.

Net sales increased during the period January-September 2020 and amounted to SEK 42.1 million (3.1). Profit after financial items increased and amounted to SEK 9.4 million (loss 0.9). During the first quarter, three generator wagons ordered by Infranord were delivered and recognised as income.

Key financial ratios and figures - Machine Sales

Amounts in SEK thousands, unless otherwise stated	Jul-Sep 2020	Jul-Sep 2019	Change, %	Jan-Sep 2020	Jan-Sep 2019	Change, %
Net sales	7.101	790	798.9	42,101	3,117	1,250.7
Profit/loss after financial items	1,416	-183	873.8	9,378	-899	1,143.2
Net margin, %	19.9	-23.2	43.1	22.3	-28.8	51.1

Parent Company

Financial targets

Dividend

Innovation & Design

Events after the period

2021 Annual General Meeting

Nomination Committee in preparation for Railcare Group AB's 2021

Annual General Meeting

railcane

Shareholder structure

Ten largest shareholders 30 September 2020	Number of shares	Proportion of share capital and votes (%)
Norra Västerbotten Fastighets AB	2,521,335	10.5
Marklund family* through companies	2,433,905	10.1
TREAC Aktiebolag	2,415,000	10.0
Dahlqvist family through companies	2,002,155	8.3
Ålandsbanken AB	1,174,337	4.9
Norrlandsfonden	1,111,111	4.6
BNY Mellon NA. W9	801,446	3.3
NTC IEDP AIF Clients S Non Treaty
30 % Account	622,537	2.6
Bernt Larsson	557,444	2.3
Avanza Pension insurance company	553,004	2.3
Ten largest shareholders	14,192,274	58.9
Other shareholders	9,931,893	41.1
Total	24,124,167	100.0

4.434

Number of shareholders in Railcare Group AB as per 30 September 2020. Source: Euroclear

* No single individual holds shares corresponding to more than 10 per cent of the votes.

Sources: Euroclear and Railcare

Significant risks and uncertainties

A description of significant risks and uncertainties available in Railcare's 2019 Annual Report, which be downloaded at www.railcare.se

There has been no material change in significant risks and uncertainties since the publication of the Annual Report.

Railcare is monitoring closely the developing events surrounding the corona virus and COVID-19. The Group currently perceives no change in demand for its services and products, and expects no significant impact on the Group's operations, financial results or position. Railcare follows the recommendations of the Public Health Agency of Sweden and the Ministry for Foreign Affairs.

One of Railcare's home markets is the UK. The UK withdrew from the EU on 31 January 2020. Railcare maintains its previous assessment that the UK's withdrawal from the EU, will affect the Company's operations primarily because it will be more administratively burdensome to have foreign staff in the country and to import and export machines. In Railcare's assessment, demand for the Group's services will persist and, once new administrative routines are in place, the UK's exit from the EU will not have a significant impact on the Group's operations, earnings and financial position.

Transactions with related parties

During the year, no significant changes have occurred, for the Group or the Parent Company, in their relations or transactions with related parties, compared with what is described in the 2019 Annual Report.

Attestation by the Board of Directors and CEO

Catharina Elmsäter-Svärd Ulf Marklund Anna Weiner Jiffer Chairman of the Board Board member, Deputy CEO Board member

Daniel Öholm CEO

Adam Ådin Anders Westermark Björn Östlund Board member Board member Board member

Review report

Introduction

Scope of review

Conclusion

FINANCIAL REPORTS

CONSOLIDATED SUMMARY STATEMENT OF COMPREHENSIVE INCOME

Amounts in SEK thousands	Note	Jul-Sep 2020	Jul-Sep 2019	Jan-Sep 2020	Jan-Sep 2019	full-year 2019

Net sales	3	94,477	101,017	305,717	277,073	370,610
Capitalised work for own account		3,466	2,290	4,870	6,572	7,548
Other operating income		1,020	147	3,375	997	1,775
Total		98,962	103,454	313,962	284,642	379,933

Raw materials and consumables		-27,532	-33,726	-90,036	-92,018	-129,593
Other external costs		-14,391	-12,183	-44,934	-34,963	-47,142
Personnel costs		-28,969	-28,139	-91,878	-89,187	-120,357
Depreciation and impairment of tangible and intangible assets		-13,403	-12,460	-39,661	-36,996	-49,654
Other operating expenses		-225	-189	-1,323	-952	-1,210
Total operating expenses		-84,520	-86,697	-267,833	-254,116	-347,956

Operating profit/loss (EBIT)		14,442	16,757	46,130	30,526	31,977

Financial income			2	2	7	6
Financial expenses		-1,206	-1,451	-3,611	-4,392	-5,763
Net financial items		-1,207	-1,449	-3,610	-4,385	-5,757

Share of profit after tax from associated
companies reported according to the		92	51	180	163	284
equity method
Profit/loss before tax		13,327	15,359	42,700	26,304	26,504

Income tax		-3,567	-3,328	-10,158	-5,752	-5,744
Net profit/loss for the period		9,761	12,031	32,542	20,552	20,760

Other comprehensive income:
Items that may be reclassified to the profit/loss for the period
Exchange rate differences from the translation of foreign operations		71	321	35	728	355
Other comprehensive income for the period, net after tax		71	321	35	728	355
Total comprehensive income for the period		9,832	12,352	32,577	21,280	21,115

Amounts in SEK	Jul-Sep 2020	Jul-Sep 2019	Jan-Sep 2020	Jan-Sep 2019	full-year 2019
Earnings per share before dilution*	0.40	0.52	1.36	0.89	0.90
Earnings per share after dilution*	0.40	0.50	1.36	0.86	0.87
Average number of shares	24,124,167	23,013,056	24,006,568	23,013,056	23,013,056
Number of shares outstanding on the balance sheet date		24,124,167 23,013,056	24,124,167	23,013,056	23,013,056

CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL POSITION

Amounts in SEK thousands Note	30 Sep 2020	30 Sep 2019	31 Dec 2019

ASSIBITS
Non-current assets

Intangible assets
Capitalised development costs	2,046	2,357	2,471
Patent	317	367	377
Goodwill	7,322	3,928	3,554
Transportation licence Total intangible assets	445	581	547
	10,129	7,233	6,949
Tangible assets 4
Buildings and land	34,622	25,534	30,790
Locomotives and wagons	139,535	123,111	129,169
Mobile machinery	159,177	152,180	165,405
Vehicles	6,472	8,066	7,604
Equipment, tools, fixtures and fittings	6,084	6,126	5,545
Construction in progress	58,475	50,622	31,912
Total tangible assets	404,365	365,639	370,425

Financial non-current assets
Holdings reported according to the equity method	665	566	686
Deposits	658	658	658
Deferred tax assets	108		97
Other non-current receivables	3,954	3,954	3,954
Total financial non-current assets	5,385	5,178	5,395

Total non-current assets	419,879	378,050	382,769
Current assets

Inventories
Raw materials and consumables	12,057	11,500	11,805
Work in progress	5,282	11,329	10,765
Total inventories	17,339	22,829	22,570

Current receivables
Accounts receivable	42,407	40,255	15,928
Current tax receivables			1,750
Other current receivables	219	4,461	6,775
Prepaid expenses and accrued income	8,646	9,946	7,362
Total current receivables	51,271	54,662	31,815

Cash and cash equivalents	16,507	5,710	22,012
Total current assets	85,117	83,201	76,397
TOTAL ASSETS	504,996	461,251	459,166

CONSOLIDATED SUMMARY STATEMENT OF FINANCIAL POSITION, cont.

Amounts in SEK thousands	30 Sep 2020	30 Sep 2019	31 Dec 2019

EQUITY
Share capital	9,891	9.435	9,435
Other capital provided	36,565	32,178	32,178
Reserves	1,704	2,042	1,669
Retained earnings (comprehensive income for the	135,892	110,380	110,589
period included)
Total equity attributable to Parent Company	184,052	154,035	153,871
shareholders

LIABILITIES

Non-current liabilities
Deferred tax liabilities	27,557	23,427	27,670
Convertible loans		4,727
Liabilities to credit institutions	107,974	112,175	106,979
Lease liability	38.377	21,504	24.712
Total non-current liabilities	173,909	161,833	159,361

Current liabilities
Lease liability	27,555	29,694	31,567
Liabilities to credit institutions	54,617	45,802	50,162
Convertible loans			4,782
Accounts payable	22,970	26,475	24,537
Prepayments from customers	1,043	9,218	4,162
Current tax liabilities	7,595	3,452	931
Other liabilities	4,749	4,824	4,475
Accrued expenses and deferred income	28,507	25,918	25,318
Total current liabilities	147,035	145,383	145,934
TOTAL EQUITY AND LIABILITIES	504,996	461,251	459,166

CONSOLIDATED SUMMARY STATEMENT OF CHANGES IN EQUITY

Amounts in SEK thousands	Share capital	Other capital provided	Reserves	Retained earnings (incl. comprehensive income for the period)	Total equity
Opening balance as per 1 January 2019	9,435	32,178	1,314	90,677	133,604
Adjustment on transition to IFRS 16				-849	-849
Net profit/loss for the period				20,552	20,552
Other comprehensive income			728		728
Total comprehensive income			728	20,552	21,280
Closing balance as per 30 September 2019	9,435	32,178	2,042	110,380	154,035
Opening balance as per 1 January 2020	9,435	32,178	1,669	110,589	153,870
Profit for the year				32,542	32,542
Other comprehensive income			35		35
Total comprehensive income			35	32,542	32,577
Transactions with shareholders
Conversion of debenture	456	4,387			4,843
Dividend				-7,237	-7,237
Closing balance as per 30 September 2020	9,891	36,565	1,704	135,892	184,052

CONSOLIDATED SUMMARY STATEMENT OF CASH FLOWS

Amounts in SEK thousands	Jul-Sep 2020 Note	Jul-Sep 2019	Jan-Sep 2020	Jan-Sep 2019	full-year 2019

Cash flow from operating activities
Operating profit/loss	14,442	16,757	46,130	30,526	31,977
Adjustment for
non-cash items	13.559	12,106	38,230	37,191	50.993
Interest paid	-1,207	-1,396	-3,574	-4,228	-5,544
Interest received		2		7	6
Income tax paid	-1,171	-781	-2,268	-2,002	-2,041
Cash flow from operating activities	25,623	26,688	78,518	61,494	75,391
before changes in working capital

Cash flow from changes in working
capital
Increase/decrease in inventories	1,118	-9,492	5,032	-12,503	-12,244
Increase/decrease in operating receivables	5,305	6,767	-20,636	-20,131	5,017
Increase/decrease in operating
liabilities	-2,950	-6,991	-2,597	11.940	3,798
Total changes in working capital	3,473	-9,716	-18,201	-20,694	-3,429

	29,096	16,972	60,317	40,800	71,962
Cash flow from operating activities

Cash flow from investment activities
Investments in intangible assets		-288	-187	-377	-704
Investments in tangible assets	-17,044	-4,847	-41,701	-21,776	-27,732
Acquisitions of subsidiaries, net effect	5		-2,617
on cash and cash equivalents
Dividends from associated companies			200	193	193
Divestment of tangible assets		70	2,150	70	420
Cash flow from investment activities	-17,044	-5,065	-42,155	-21,890	-27,823


Cash flow from financing activities Loans raised
Net change in bank overdraft facility	8,000		24,020	6,030	6,030
Amortisation of loans		-2,953
Dividends paid	-12,849	-17,241	-40,603	-43,608	-52,546
	-4,849		-7,237
Cash flow from financing activities		-20,194	-23,820	-37,578	-46,516

Cash flow for the period	7,203	-8,287	-5,658	-18,668	-2,377
Cash and cash equivalents at the
beginning of the period	9,270	13,784	22,012	24,081	24,081
Exchange rate difference in cash and
cash equivalents	34	213	153	297	308
Cash and cash equivalents at the end
of the period	16,507	5,710	16,507	5,710	22,012

PARENT COMPANY SUMMARY INCOME STATEMENT

	Jul-Sep				full-year
Amounts in SEK thousands	Note 2020	Jul-Sep 2019	Jan-Sep 2020	Jan-Sep 2019	2019

Net sales	6,782	6,210	23,999	19,810	27,620
Other operating income	67	9	127	38	44
Total operating income	6,849	6,219	24,126	19,848	27,664

Operating expenses
Raw materials and consumables			-3.299	-1.149	-2,748
Other external costs	-3,346	-2,631	-10,979	-10,072	-14,130
Personnel costs	-2,786	-2,348	-8,568	-8,389	-11,683
Depreciation and impairment of tangible and intangible assets	-38	-53	-119	-148	-197
Other operating expenses	-12	51	-42	-77	-77
Total operating expenses	-6,181	-4,981	-23,007	-19,835	-28,835
Profit from participations in associated companies and jointly controlled companies			200	193	193
Operating profit/loss	668	1,238	1,318	206	-978
Profit from financial items
Profit from participations in Group companies		4,296	4,346	4,296	4,296
Other interest income and similar profit/loss items		136	72	556	778
Interest expenses and similar profit/loss items	-13	-119	-54	-299	-392
Total profit/loss from financial items	-13	4,313	4,364	4,553	4,682
Profit/loss after financial items	655	5,551	5,683	4,759	3,704
Appropriations					2,300
Tax on net profit/loss for the period	-199	-287	-525	-90	-384
Net profit/loss for the period	456	5,264	5,158	4,669	5,620

PARENT COMPANY SUMMARY BALANCE SHEET

Amounts in SEK thousands	30 Sep 2020	30 Sep 2019	31 Dec 2019

ASSETS

Intangible assets Patents	317		377
		367
Total intangible assets	317	367	377
Tangible assets
Buildings	4,057
Equipment, tools, fixtures and fittings	327	188	168
Total tangible assets	4,384	188	168

Financial non-current assets
Participations in Group companies	38,336	34,236	34,236
Participations in associated companies	204	204	204
Deferred tax assets		204
Total financial non-current assets	38,540	34,644	34,440

Total non-current assets	43,241	35,199	34,985

Current assets
Current receivables
Receivables from Group companies	175	6.500	23,348
Current tax receivables		459	337
Other receivables			183
Prepaid expenses and accrued income	1,285	3,048	1,021
Total current receivables	1,460	10,007	24,889

Cash and bank balances	3,606	3,985	5,099

Total current assets	5,066	13,992	29,988

TOTAL ASSETS	48,308	49,191	64,973

PARENT COMPANY SUMMARY BALANCE SHEET, cont.

Amounts in SEK thousands	30 Sep 2020	30 Sep 2019	31 Dec 2019

EQUITY AND LIABILITIES
Equity

Restricted equity
Share capital	9,891	9,435	9,435
Total restricted equity	9,891	9,435	9,435
Non-restricted equity
Share premium reserve	23,024	18,638	18,638
Retained earnings	4,140	5,757	5,757
Net profit/loss for the period	5,158	4,669	5,620
Total non-restricted equity	32,322	29,064	30,015

Total equity	42,213	38,499	39,450
Provisions
Deferred tax liabilities			47
Total provisions			47

Non-current liabilities
Convertible loans		4,727
Total non-current liabilities		4,727

Current liabilities
Convertible loans			4,782
Accounts payable	1.923	531	1,0005
Current tax liabilities	220
Liabilities to Group companies	397	2.727	16,911
Other liabilities	967	837	555
Accrued expenses and deferred income	2,588	1,870	2,223
Total current liabilities	6,095	5,965	25,476

TOTAL EQUITY AND LIABILITIES	48,308	49,191	64,973

NOTES

Note 1 General information

Railcare Group AB (publ) ("Railcare"), Reg. No. 556730-7813 is a Parent Company registered in Sweden and domiciled in Skellefteå, with the address Näsuddsvägen 10, SE-932 32 Skelleftehamn, Sweden.

Unless otherwise stated, all amounts are given in SEK thousands. Figures in parentheses refer to the corresponding period in the preceding year.

Note 2 Basis for preparation of statements

Railcare's consolidated accounts for have been prepared in accordance with the Annual Accounts Act, recommendation RFR 1 Supplementary Accounting Rules for Groups from the Swedish Financial Reporting Board, International Financial Reporting Standards (IFRS) and the interpretations of the IFRS Interpretations Committee (IFRS IC) as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act.

The accounts of the Parent Company have been prepared in accordance with the Annual Accounts Act and RFR 2 Accounting for legal entities from the Swedish Financial Reporting Board, The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act.

The accounting principles applied are consistent with those described in the Railcare Group's 2019 Annual Report.

The fair value of financial assets and liabilities is estimated to correspond to book value.

Note 3 Segment information

Description of the segments and their principal activities:

Railcare's Group Management, comprising the Chief Executive Officer (CEO), the Chief Financial Officer (CFO) and the IR and Communications Manager, is the highest executive decision-making body in the Railcare Group and assesses the Group's financial position and earnings and makes strategic decisions. Company management has determined the operating segments based on the data processed by Group Management and used as a basis for allocating resources and assessing earnings.

Group Management has identified four reportable segments in the Group's operations: