Höganäs Interim Report 1 January – 31 March 2012

- Good start to 2012 and advances in surface coating segment
CEO Alrik Danielsson comments on first quarter earnings:

“As expected, the
market was fairly weak in Europe in the first quarter, while the recovery in
Asia continued after a 2011 hit by the tsunami and flooding. On a volatile
market, we succeeded in safeguarding sales, earnings and cash flow, despite a
notable negative currency effect. Sales volumes were somewhat lower than 2011,
but comparisons should consider that the first quarter of 2011 was exceptionally
strong, when we reported an 11% volume growth on the first quarter of 2010.
Meanwhile, we are pleased that the outlook for 2012 is somewhat more positive
than the view we had last autumn.

Our investments in research and development
are still generating results. Jointly with an Indian customer, we have extended
the usage of lasers for surface coating to also function for valve seats. This
opens new market segments for our surface coating powders, in the automotive and
other industries. It also reinforces our conviction that our focus on building
know-how in the laser surface coating segment is correct.

First quarter 2012
(compared to corresponding period of previous year)

  · Net sales were MSEK
1,813 (1,770), up 2% year on year. Sales volumes were 3% lower. Demand
conditions were better than in the corresponding period of the previous year in
Asia and North America, but worse in Europe. However, the sequential volume
increase (in quarter-on-quarter terms) was very positive in all regions.
  ·
Operating income was MSEK 282 (282) and income after tax was MSEK 203 (208).
Lower sales volumes and lower currency hedging earnings had a negative impact on
income, while price increases and savings measures had a positive effect.
  ·
Earnings per share before and after dilution for the quarter were SEK 5.83
(5.97).
  · Cash flow from operating activities was MSEK 324 (16). Cash flow
was strong thanks to the low level of increase of the working capital.
  · The
net debt/equity ratio was 17% at the end of the period, compared to 25% at the
beginning of the financial year.
  · Prospects have improved somewhat compared
to the assessment made in the Year-end Report. Uncertainty regarding the
immediate future has eased. A significant downturn in global industrial activity
in 2012 due to the global debt crisis now appears unlikely, despite fundamental
imbalances persisting. Höganäs judges that demand conditions are expected to be
weaker than last year in Europe, but fairly favourable in the rest of the
world.

Höganäs, Sweden, 25 April 2012

Höganäs AB (publ)

Streamed press
conference

Alrik Danielson, CEO and President, and Sven Lindskog, CFO, will
present the Interim Report in a conference call at 10:30 a.m. on 25 April
2012.

The press conference will be streamed at: www.hoganas.com/Investor
Relations/Conference Call.

It is open to journalists, analysts and
investors.

Participants are welcome to call on +46 (0)8 506 85759, +44 (0)207
108 6303 or +1 8666 765 870.

The presentation is available at
www.hoganas.com.

NB:

This information is mandatory for Höganäs to publish
pursuant to the Swedish Securities Markets Act. The information was submitted
for publication at 9 a.m. on 25 April 2012.
For more information

Please contact:
Alrik Danielson, CEO and President, +46
(0)42 33 80 00
Sven Lindskog, Chief Financial Officer, +46 (0)42 33 80 00
About Höganäs

Höganäs AB is the world's leading producer of iron and metal
powders. Building on its clear vision of the possibilities of powder to improve
efficiency, the consumption of resources and environmental impact across a raft
of segments, the company has developed in-depth application skills.

Thus
Höganäs can help create the automotive components, white goods, and products for
water and exhaust treatment products of the future in collaboration with its
customers. Founded in 1797, the company had sales of MSEK 7,081 in 2011, and is
quoted on NASDAQ OMX Stockholm's Mid Cap List.

For more information, visit
our website: www.hoganas.com.