CONCENTRIC INTERIM REPORT JANUARY – MARCH 2015

First quarter of 2015: Solid results strengthened by currency gains

  · Net sales for Q1, excluding Alfdex: MSEK 623 (496) – up 1% year-on-year,
after adjusting for currency (+21%) and acquisition of GKN Pumps (+4%)
  · Operating income for Q1: MSEK 117 (77), including negative goodwill of MSEK
15 (nil) recognised on acquisition of GKN Pumps – operating margin of 18.8%
(15.5)
  · Earnings after tax for Q1: MSEK 89 (53) – basic and diluted EPS of SEK 2.10
(1.20)
  · Group’s net debt for Q1: MSEK 630 (343) – gearing ratio of 84% (40)


President and CEO, David Woolley, comments on interim report for Q1 2015:

“The group’s solid performance in the first quarter of 2015 was strengthened by
significant translational currency gains derived from the relative weakness of
the Swedish Krona. Underlying sales for the first quarter of 2015, excluding the
impact of currency and the GKN Pumps acquisition, were up 1% year-on-year, in
line with the published indices for our end-markets. Across most of our end
-markets, the outlook in North America remained positive and, although Europe
was flat, Concentric enjoyed further structural growth from the ramp up of Euro
VI platforms. However, the weak demand in the global agricultural machinery
market has continued.

Linked to the strong currency impact, the group’s underlying EBIT margin for the
first quarter improved to 16.3% (15.5). As the fair value of the net assets
acquired with the GKN pumps business exceeded the purchase price, negative
goodwill of MSEK 15 was also recognised in the first quarter, which increased
the reported operating margin to 18.8%. In addition, we expect to book
integration costs in respect of GKN pumps during the second quarter of 2015
which should not exceed the value of this negative goodwill.

Looking forward, the orders received, and expected to be fulfilled during the
second quarter of 2015, were in line with the sales levels of the first quarter
of 2015, indicating stable end-customer demand.

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 28 April, 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.