CONCENTRIC INTERIM REPORT JANUARY – SEPTEMBER 2014

First nine months of 2014: Strong margin and cash conversion

• Net sales for first nine months, excluding revenues attributable to Alfdex: MSEK 1,543 (1,390) 1) – up 3% year-on-year, after adjusting for currency (+5%) and LICOS (+3%)
• Operating income for first nine months, including net income (after interest and tax) attributable to Alfdex: MSEK 247 (206) – operating margin of 16.0% (14.8) 1)
• Earnings after tax for first nine months: MSEK 177 (130) – basic EPS of SEK 4.08 (2.96)
• Strong cash flow from operating activities for first nine months: MSEK 243 (120)
• Group’s net debt at 30 September: MSEK 414 (604) 1) – gearing ratio of 49% (104), following dividend payout of MSEK 121 (110) and own share buy-backs of MSEK 98 (nil) during Q2 and Q3

Third quarter of 2014: Positive margin development continued

• Net sales for Q3, excluding revenues attributable to Alfdex: MSEK 520 (496) 1) – down 3% year-on-year, after adjusting for currency (+8%)
• Operating income for Q3, including net income (after interest and tax) attributable to Alfdex: MSEK 86 (75) – operating margin of 16.4% (15.1) 1)
• Earnings after tax for Q3: MSEK 64 (49) – basic EPS of SEK 1.47 (1.10)
• Strong cash flow from operating activities for Q3: MSEK 84 (55)

1)    The 2013 comparative figures for Net sales, Operating income, Earnings before tax and Net debt for the period have been adjusted for the amendments to IFRS 11, “Joint arrangements” (see Appendices 1 to 3 for the restated consolidated income statements, balance sheets and cash flow statements).

President and CEO, David Woolley, comments on interim report for Q3 2014:

“Sales for the third quarter, excluding revenues attributable to Alfdex, were down 3% year-on-year in constant currency driven primarily by the weaker demand experienced in our European end-markets, particularly for medium and heavy trucks. However, the business responded well to these lower activity levels, as the group’s EBIT margin improved to 16.4% for the third quarter.

Looking forward, the orders received, and expected to be fulfilled during the fourth quarter, were in line with sales levels for the third quarter, adjusted for the fewer working days in the fourth quarter, indicating that end-customer confidence remains stable.

The increasing pressure to reduce fuel consumption in all forms of machinery and trucks just reinforces the importance of our ongoing customer development programmes for our variable flow pump technology. Furthermore, our longstanding expertise in hydraulic products, will allow us to continue to occupy strong positions in niche areas where customers require more advanced, custom-made solutions. Concentric remains well positioned both financially and operationally, to fully leverage our market opportunities.”

For further information, please contact:

David Woolley (President and CEO), David Bessant (CFO), or Lena Olofsdotter (Corporate Communications), at Tel: +44 121 445 6545 (E-mail: info@concentricab.com)

Concentric AB (publ) is listed on NASDAQ OMX Stockholm, Mid Cap. The information in this report is of the type that Concentric is required to disclose under the Swedish Securities Market Act. The information was submitted for publication at 8.00am on 24 October, 2014. This report contains forward-looking information in the form of statements concerning the outlook for Concentric’s operations. This information is based on the current expectations of Concentric’s management, as well as estimates and forecasts. The actual future outcome could vary significantly compared with the information provided in this report, which is forward-looking, due to such considerations as changed conditions concerning the economy, market and competition.

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