Report on Operations 2004

• Inflow of orders: SEK 7,743 million (7,669) • Net sales: SEK 7,686 million (7,687) • Net earnings: SEK 250 million (308) • Earnings per share: SEK 8.32 (10.28) • The Board of Directors proposes a dividend of SEK 8.00 (8.00) The Group’s inflow of orders stood at SEK 7,743 million (7,669), an increase of 2 percent after adjustment for the effects of exchange rate movements. Compared with the previous year, the inflow of orders during the fourth quarter was lower for construction-related products, particularly in Germany and the UK. Net sales amounted to SEK 7,686 million (7,687), an increase of 1 percent after adjustment for the effects of exchange rate movements. Net sales relating to customers outside Sweden accounted for 90 percent (90) of the Group’s total net sales. Operating earnings amounted to SEK 358 million (448). Net earnings for the year include a provision of SEK 70 million for reorganization at Cardo Pump, which is expected to give an annual net saving of approximately SEK 40 million, and a capital gain of SEK 40 million on the disposal of shares in SAB WABCO. Earnings were adversely affected by the product mix and by costs of increased activities in sales and product development. Raw-material prices rose sharply. In the main, product-price rises and enhanced efficiency in purchasing could compensate for the element of the price rises that had an effect during the year. Earnings after financial items amounted to SEK 336 million (428). Exchange rate movements had only a marginal impact on earnings. Net earnings amounted to SEK 250 million (308), which is equivalent to SEK 8.32 (10.28) per share. Cash flow from operating activities was SEK 467 million (656) after tax, which is equivalent to SEK 15.57 (21.87) per share. For further information, please contact: Kjell Svensson, President and CEO, phone +46 40 35 04 53, 35 04 00 Göran Axeheim, Executive Vice President and CFO, phone +46 40 35 04 42, 35 04 00 Christer Roskvist, Head of Public Relations, phone +46 40 35 04 25, 35 04 00, +46 708 47 41 83