CONCENTRIC INTERIM REPORT JANUARY – DECEMBER 2014

Full Year 2014: Strong margin and cash conversion

  · Net sales for the full year, excluding revenues attributable to Alfdex: MSEK
2,078 (1,858) 1) – up 3% year-on-year, after adjusting for currency (+7%) and
LICOS (+2%)
  · Operating income for the full year, including net income (after interest and
tax) attributable to Alfdex: MSEK 333 (279) – operating margin of 16.0% (15.0)
1)
  · Earnings after tax for the full year: MSEK 241 (176) – basic EPS of SEK 5.54
(4.00)
  · Strong cash flow from operating activities for the full year: MSEK 340 (199)
  · Net debt at year-end: MSEK 528 (409) 1) – gearing ratio of 65% (52),
following revaluation of pension liabilities, and total share buy-backs of MSEK
148 (nil)
  · Based on the Group’s strong earnings and financial position, the Board of
Directors intend to propose a total dividend of SEK 3.00 (2.75) per share and to
renew the current mandate for share buybacks

Fourth quarter of 2014: Positive margin development continued

  · Net sales for Q4, excluding revenues attributable to Alfdex: MSEK 535 (468)
1) – up 3% year-on-year, after adjusting for currency (+11%)
  · Operating income for Q4, including net income (after interest and tax)
attributable to Alfdex: MSEK 86 (73) – operating margin of 16.1% (15.6) 1)
  · Earnings after tax for Q4: MSEK 64 (46) – basic EPS of SEK 1.49 (1.04)
  · Strong cash flow from operating activities for Q4: MSEK 97 (79)

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 Q4 2014:

“Sales for both the fourth quarter and full year of 2014 were up 3% year-on-year
in constant currency, driven primarily by the structural growth achieved in the
European truck market from the ongoing ramp up of Euro VI platforms. In North
America, the higher demand for medium and heavy duty trucks was largely offset
by the weak demand for agricultural machinery. Overall, the business continued
to demonstrate its strong operating leverage from the increased activity levels,
as the group’s EBIT margin improved to 16.0% for the full year.

Looking forward, the orders received, and expected to be fulfilled during the
first quarter of 2015, were slightly ahead of sales levels for the fourth
quarter of 2014, adjusted for the fewer working days in the fourth quarter,
indicating that end-customer confidence remains stable.

A key strategic objective for Concentric is to stay close to our customers
through our manufacturing footprint. The recently announced acquisition of a
pumps business in South America emphasises our commitment to sell locally to our
global customers and the importance we place on this region for our future
growth ambitions.

Despite current low oil prices, the pressure to reduce fuel consumption in all
forms of machinery and trucks continues to increase through the planned
legislation to reduce CO2. European, North American, and Japanese heavy-duty
vehicle and engine manufacturers have called for further promotion and
cooperation of regulatory harmonisation for fuel efficiency improvements and
reductions in greenhouse gas emissions. This just reinforces the importance of
our ongoing customer development programmes for our variable flow pump
technology, which continue to perform well under engine test. Accordingly,
Concentric remains well positioned, both financially and operationally, to fully
leverage our market opportunities.”

For further information, please contact:
David Woolley (President and CEO) or David Bessant (CFO) at Tel: +44 121 445
6545 or 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 4 February, 2015. 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.