YEAR-END REPORT 2007

Highlights

(For table see attached file.)


· A strong conclusion to 2007 on all significant markets, with 7% volume growth in Q4. Volume growth in the quarter in Japan, and the best quarterly sales volumes there in the most recent three-year period.

· In the fourth quarter, gross profit was up 10% year on year.

· Volumes grew by 5% in the full year, which is generally consistent with the market. Growth in the US despite a weak market.

· Gross profit for the full year 2007 was MSEK 1 113 (1 038), up 7% year on year. A weak third quarter meant the first half-year was far stronger than the second due to JPY and USD depreciation during the year, and metal price volatility. Price increases to customers, over and above metal price adjustments, commence in 2008.

· Operating income for the full year 2007 adjusted for earnings from currency forward contracts amounted to MSEK 573 and was up 8% year on year.

· Cash flow from operating activities in 2007 excluding changes in working capital was MSEK 677 (636). Working capital was inflated by factors including rising metal prices in the year.

· The Board of Directors is proposing a cash dividend of SEK 6.25 per share (6.25), plus an additional payment to shareholders of SEK 15 per share through a redemption procedure, implying a total pay-out to shareholders of MSEK 740.

(For full report see attached file.)