EuroMaint Annual Report 2012 Report Euromaint AB...12De-icng fnn2ia ltyeDg EurEEuroMaint Annual Report 2012 3 Operational activities Group overview 4 The year in brief 6 The CEO's

1EuroMaint Annual Report 2012

EuroMaintAnnual Report

2012

22 EuroMaint Annual Report 2012

De-icing facility at Euromaint's Svartön workshop, Luleå, Sweden.

3EuroMaint Annual Report 2012 3EuroMaint Annual Report 2012

Operational activities

Group overview 4

The year in brief 6

The CEO's comments 7

Strategic focus 9

EuroMaint's offering 14

EuroMaint's Business Areas 19

The rail market 20

Five-year overview 25

Financial reporting 2012

Directors' report 26

The Group 28

The Parent Company 32

Notes 36

Auditors' report 60

The Board of Directors 61

Company management 62

Contents

This annual report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish and the translation, the former shall have precedence.


EuroMaint in two minutes

20122011201020092008

Average no. of employees

1,793

2,373

1,909

2,442 2,437

20122011201020092008

Net turnover, MSEK

2,324

2,814

2,510

2,860

2,489

20122011201020092008

Operating earnings EBITA*, MSEK

122

169

133 137

81

The figures for 2010 and 2011 are pro forma.For the basic data for the graphs and additional key ratios, please refer to the five-year overview on page 25.*Items affecting comparability.

Refurbishment of a T46 locomotive underway at Euromaint's Notviken workshop, Luleå, Sweden. From the left: Kent Fredriksson and Tommy Sundberg.


EuroMaint's offering

Euromaint has two main offerings: Maintenance of rolling stock that is used for passenger traffic and maintenance of rolling stock that is used for freight traffic. In addition, Euromaint has a niched offering directed at work machines used for maintaining rail infrastructure. Euromaint also provides the reprocessing of components as well as logistics services to train operators, owners of rolling stock and maintenance companies.

EuroMaint's customers

Euromaint's customers include many of the players in the rail transport sector, such as train operators, freight wagon owners, infrastructure contractors and manufacturers of rolling stock. Major customers includes companies such as SJ, A-Train (Arlanda Express),

Green Cargo, AAE, VTG, Deutsche Bahn and Infranord.

EuroMaint's organisation

Euromaint runs its operational activities through its subsidiary Euromaint Rail. The operational activities are split into four Business Areas – Passenger, Freight, Work Machines and Compo-nents. Each business area has its own expertise and experience, and has the task of creating maximum profitability for its part of Euromaint's offering. Euromaint is based in Sweden and Germany and also has operational activities in Belgium, Latvia and the Netherlands.

GROup OvERviEw

infrastructure providers Responsible for track and

overhead lines Freightpassengers

Euromaint supplies maintenance for the work machines used by the infrastructure contractors.

Euromaint supplies maintenance, reprocessing of components and the supply of spare parts for passenger trains as well as freight wagons and locomotives.

Train operators for freight traffic as well as

freight wagon owners

Train operators for passenger traffic

infrastructure contractorsMaintains track and

lines for infrastructure providers

Euromaint is Europe's largest independent supplier of maintenance services for rolling stock. with long experience and unique expertise in train maintenance, Euromaint is an attractive partner to its customers in creating available, reliable and safe trains.


EuROMAint RAil, in collaboration with DSB Vedligehold, receives the assignment to maintain Öresundstågen via DSB Øresund A/S.

EuROMAint RAil receives the assignment to modernise eight 10 MVA train converters for Jernbaneverket Bane Energi, Norway. The modernisation means that Jernbaneverket's costs for maintaining the converters is reduced and that availability increases.

EuROMAint RAil signs a contract with Norwegian Flytoget AS on sourcing services for suppliers who deliver and repair spare parts to Flytoget. The assignment means Euromaint is taking responsibility for everything from finding suppliers to carrying out procurements as well as signing and following up contracts.

EuROMAint RAil signs a contract with Inlandsbanan to continue its cooperation regarding consignment stock. Inlandsbanan also decides to expand the contract with reprocessing of components.

EuROMAint RAil signs a contract with Alstom to take the main responsibility for the supply of materials for all 51 of the X10 train units operating commuter services in Stockholm.

EuROMAint RAil signs a contract with ÖstgötaTrafiken for the overhaul of two model X14 trains. Thanks to the maintenance assignment, the trains will remain in service for many more years.

RObERt lEhMAnn, COO for Euromaint Rail's German company, is appointed as acting Business Area Manager and MD for the German company.

SJ hAS Euromaint Rail refurbish 55 passenger coaches at the Notviken work-shop, Luleå, Sweden. The refurbishment runs from November 2012 until the first quarter of 2014, and will employ around 40 people.

2 0 1 2


thE yEAR in bRiEF

7EuroMaint Annual Report 2012 7

The CEO's comments

In the last year, we have put a lot of effort into helping our existing customers increase their competitiveness by actively proposing improvements for their rolling stock. At the same time, we have pursued an extensive change and improvement process. During the first six months, the company management presented Euromaint's new focus. This describes where we are heading and how we will get there. The goal is not particularly modest; we always aim to be the best at everything we do.

This is a process that we are counting on to give clear results in the coming years. Our results for 2012 were clearly affected by the weak economy. Turnover declined and amounted to SEK 2,489 million (SEK 2,860 ). Operating profit (EBITA) amounted to SEK 51 million (SEK 102 ). This is not in line with our targets. There is still a lot left to do if we are to reach our profitability target and our ambition to be the best, and

this demands that we all pull in the same direction.

To increase insight into and under-standing of our business and our ambi-tion, I have spent a lot of my time visiting our workplaces in Sweden and Germany. There I have had many interesting dis-cussions about our ambitions and what is lacking in order for us to be the best at what we do. These efforts are now being pursued further locally, and with great commitment. During my visits to the operational units, we extensively discussed the importance of good cooperation for achieving change and improvement. Many of us have worked hard to tear down barriers and create the conditions for an open, honest and mutual dialogue.

In this way, we have strengthened internal cooperation, and the backing for our four core values "cooperation", "responsibility", "contributive" and "reliable" has been of great importance

thE CEO'S COMMEntS

Euromaint wants to be the best at what we do. this is a clearly stated ambition. During 2012, we have taken a number of steps in the right direction. the focus has been on change for improvement.

Ove BergkvistPresident and CEO.


has decided to carry out all of its own maintenance. As a result, we have been forced to reduce operational activities and we have also been affected by the weak market conditions in Sweden.

In February 2013, we lost the mainte-nance assignment for SJ Norrlandståg. This is obviously a disappointment with consequences for both employees and the company. It is also clear evidence that our market is in a state of flux, in which we are meeting increasingly stiff competition. Nevertheless, as with the loss of Stockholmspendeln in 2010, we are now making a thorough assessment in order to strengthen ourselves further. We already know that we need to be more flexible and reorganise our resources more quickly when we have more, or less, to do. In this way, we can be an even more competitive company. The long-term goal, of course, is to win back the maintenance provider assignments for Norrlandståg and Stockholmspendeln.

As we enter 2013, we are doing so with the ambitions of developing our existing contracts in order to create added value for our customers, winning new contracts and continuing to develop positively. We can see that customers that have left us choose to return. This is not because we are the cheapest, because we aren't. Instead, it's because we are highly competent. We have an ambition that is shared by our customers – the trains will go out on time.

I would like to finish by thanking all employees for their fantastic efforts during the year. Together, we have come a good way along the road towards our goal – to always be the best at what we do.

Solna, Sweden, February 2013

Ove bergkvistPresident and CEO

for the fact that we have raised the quality, improved key ratios and now get more trains back in traffic on time.

2012 has been a transitional year with no major procurements being carried out. Nevertheless, in my opinion, the work that has been done during the year have made us better prepared for future procurements than we have ever been before. Among other things, we have developed the maintenance concept, which is creating the conditions for more planned maintenance, and we have come a long way in the process of moving from delivering trains in traffic to delivering punctuality. We are competitive and ready for new markets.

The year has offered challenges due to weak economic conditions. Among other things, financial worries are causing operators and rolling stock owners to review their maintenance strategies, which has direct consequences for us. In Germany, our largest customer

thE CEO'S COMMEntS


StRAtEGiC FOCuS

Strategic focus

During 2012, Euromaint has continued on the journey with a focused improvement process to come closer to the company's vision – to be Europe's leading independent supplier of maintenance services to all parts of the rail transport sector.

that permeate the efforts to develop Euromaint’s operational activities during 2012. A few concrete examples of these efforts are given below.

DEviAtiOn MAnAGEMEntEuromaint has strengthened systems and working methods for the way delivery quality deviations are managed. This concerns both being better at identifying deviations as well as under-standing the underlying causes and taking actions so the deviations will not recur. This is done by means of so-called root cause analyses, in which the company's experienced personnel actively search for the underlying cause as to why the fault occurred, so that it will not happen again. These analyses can prevent rolling stock from repeatedly having to enter the workshop for repair of a recurrent fault. The greatest part of the responsibility for deviation manage-ment rests on the respective workshop and it is followed up by Euromaint's Quality Manager.Purpose: increased quality.

nEw MAintEnAnCE plAnninGEuromaint has introduced a new way of planning the maintenance of the

During 2012, the new strategic direction for Euromaint was introduced. It involves several aspects. Firstly, it concentrates the operational activities on train maintenance, instead of also offering maintenance services to industry as was previously the case. Secondly, an exten-sive change process was initiated to develop and strengthen the operational activities within train maintenance. This change process has been the common factor during 2012. The goals are best summed up by: Euromaint always aims to be the best at everything it does.

Keeping our customer promises

Through the change process, Euromaint wants to build for the future and create a stable platform to win important busi-ness opportunities that will be offered for tender in the next few years. A precon-dition for this is that Euromaint keeps the company's customer promises. Euromaint will always offer high quality at an attractive cost, creating efficiency, availability and reliability for customers; in addition Euromaint will always keep its promises and be proactive. This can be summed up as quality, delivery and innovation – three customer promises

CuStOMER pROMiSES

QuAlityFor Euromaint, quality and safety are closely linked. Maintenance actions must be performed correctly and according to the maintenance instructions.

DElivERyDelivering the trains from the work-shops on time is central for Euromaint. Euromaint will help its customers keep their promises about the punctuality of train transport.

innOvAtiOnEuromaint will be proactive and make proposals, for instance, on how the availability of customers' rolling stock could be even better.

viSiOn

Euromaint will be Europe's leading independent supplier of maintenance services for all parts of the rail transport sector.

MiSSiOn

Euromaint will contribute to making the train the natural means of transport for meeting the environmental challenges of tomorrow.


Angela Hedlund and Thomas Åberg, welders at the Notviken workshop, Luleå, Sweden.


motor coach fleets maintained by the company. The first part of the new planning controls how frequently each piece of rolling stock will be taken into the workshop. With the new planning, rolling stock comes in for corrective maintenance twice between each occasion for preventive maintenance. This has made it significantly easier to plan the maintenance.

The second part is the day-to-day planning of maintenance, when the rolling stock is on the way to, or at, the workshop. Currently, weekly plans are drawn up defining the rolling stock that will be taken into the workshop and when it will arrive. Every morning, a detailed plan is prepared for the next day. This states the maintenance actions that are to be carried out, and where the rolling stock will be located in the workshop at any given time. Material is ordered in advance so it is in place on time. Purpose: increased quality and more reliable delivery.

JOint DAily MAnAGEMEntJoint daily control is an internal form of cooperation aimed at strengthening the dialogue and cooperation between different operational activities in Euromaint linked to a specific type of rolling stock and assignment. Joint daily control is carried out several times a week with participants from the work-shops, the central planning function,

purchasing, rolling stock engineering and material supply. Here, all questions affecting the delivery capability are addressed. Any deviations and problems are indentified with a clear division of responsibilities for remedying these. Purpose: more reliable delivery.

REMOtE vEhiClE MOnitORinG/RvMThe use of RVM is one example of Euromaint's efforts to develop new solutions that strengthen the company's offering to its customers. RVM consists of a piece of hardware that is connected to the train's computer which makes it possible to obtain real time information remotely, including fault indications and the train's position. This makes it easier to plan maintenance, which in turn improves efficiency for customers as their rolling stock spends less time in the workshop. It is also an important first step towards a more condition-based maintenance. That is to say, preventive maintenance is carried out when it is needed, based on the rolling stock's condition. Purpose: to create added value for our customers through innovation.

improved key ratios

During 2012, Euromaint's work with quality and delivery improvements has had positive effects on the key ratios used for following up the company's maintenance commitments. One

StRAtEGiC FOCuS


Daily control at the Notviken workshop, Luleå, Sweden. From the left: Stig-Anders Lindgren, Daniel Eriksson and Rolf Forssell.


StRAtEGiC FOCuS

example is that the rolling stock avail-ability for one type of rolling stock has improved from an average of approx. 5.5 vehicles out of operation per day during 2011 to approx. 3.5 in 2012. For the same type of rolling stock, the damage points – a measure of the extent and age of the damage in the rolling stock fleet – has been reduced by approx. 30 percent compared with 2011. For another type of rolling stock, the backlog, that is to say,

the number of hours by which the pre-ventive maintenance is behind schedule, has been reduced by approx. 25 percent.

EuroMaint's focus areas

Euromaint has defined four focus areas that characterise a company that can lead the market's development in the manner Euromaint is trying to attain. These focus areas guides the com-

EuROMAint SwEDEn iS MAintAininG DAniSh bOGiES

Every day, hundreds of thousands of Copenhagen's residents take the underground to work and school. They all take it for granted that the trains will work as they should and depart on time. For Danish Metro Service, which operates the underground, it is the be-all and end-all that all components on the underground trains are maintained according to plan. Euromaint has responsibility for maintaining the bogies. This is carried out at the workshop in Örebro, Sweden. Long experience means the quality of the work is high and the bogies are delivered at the appointed time. Euromaint is one part in the chain of several suppliers who are performing actions on behalf of Metro Service, which for the fourth year in a row in 2012 has been picked out as the world's best driverless underground. For this reason it is important to keep to the time frames if the entire overhaul is to function.

"Great professionalism, specialisation in bogies and a competitive price is why we chose Euromaint," says Lars Ahm, Supervisor Rolling Stock for Metro Service.

Challenge: Every day, Copenhagen's underground has hundreds of thousands of passengers. To achieve satisfied passengers, the trains must function as expected.

Customer value: High availability, reliability and punctual rolling stock.

Euromaint's solution: As one part of the maintenance chain, Euromaint provides efficient reprocessing of components on the rolling stock's bogie frames.


pany on the road to the vision of being Europe's leading independent supplier of maintenance services for rolling stock.

– StAbilityTo be a stable partner and run a stable business with high quality and delivery reliability.

Development 2012: Euromaint has implemented most of the improvement actions that increased both quality and delivery capability.

– pROFitAbilityTo create profitable growth, good control of costs and strong cash flow. Gives returns to the owner and room to develop the operational activities through investments.

Development 2012: Profitability has deteriorated as a result of reduced turnover on the German market. Nevertheless, the company maintains a satisfactory gross margin. Further savings were initiated at the end of the year.

– iMAGETo strengthen the market's confidence in Euromaint by standing for quality, delivery and innovation.

Development 2012: Euromaint's improvement efforts during 2012 have been based on customer promises


StRAtEGiC FOCuS

in the areas of quality, delivery and innovation. The year's efforts have been an important step in the process of strengthening the company's market image in the long term.

– GROwthTo grow in the Nordics as well as in the rest of Europe, organically as well as through acquisitions.

Development 2012: Turnover has declined during 2012. The reason is primarily a reduced demand for freight wagon maintenance in Germany, as a result of weak European market conditions.

profitability goal

Euromaint aims for growth with profitability, where profitability is given priority. Meeting the company's profit-ability target will both strengthen the

company's position in the sector and contribute to a good return for the company's owner. Euromaint's overall profitability target is to reach an annual EBITA margin of ten percent in the long term.

Euromaint's opportunities for growth in the next three-year period are in Sweden and the other Nordics for the Business Areas Passenger, Components and Work Machines. Euromaint also has great potential for winning new business for maintaining passenger rolling stock in Germany. A large number of EMU/DMU trains (Electric Multiple Unit and Diesel Multiple Unit) will be over-hauled in the coming years, and this is an area where Euromaint has a strong offering. For the Business Area Freight, Euromaint's ambition is to increase its market share in Europe, for the maintenance of both freight wagons and locomotives.

Lars Ejnestrand inspects a contact strip in connection with the inspection of locomotives at the Svartön workshop, Luleå, Sweden.


EuROMAint'S CORE vAluES

In order to develop a stable and profitable company, it is important for all employees to know what is expected of them. One important building block is the company's core values. These place the focus on increased quality, reliability and delivery reliability with the end goal being increased profitability and growth. Shared core values, an active leadership, well-functioning processes and routines through open, honest and mutual dialogue will unite those things Euromaint wants to be and stand for.

COOpERAtiOnUnderstanding the whole and how all parts contribute to the development of the whole. The whole is more important than the parts.

RESpOnSibilityTaking responsibility for your own and your colleagues' work, ensuring that there are the right conditions to make it possible to do a good job as well as correct faults when they arise.

COntRibutinGSeeing that one’s own tasks contribute to the whole and contributing to continuous improvement.

REliAblEAlways keeping promises and delivering as expected, both internally and externally.

StRAtEGiC FOCuS


Hans Johansson and Anders Carlqvist turn a wheel set in the underfloor lathe at Euromaint's Notviken workshop, Luleå, Sweden.

ChAllEnGinG DEMAnDS EvERy DAy

Traffic safety and customer benefit, generally speaking, characterise every work procedure for the majority of Euromaint's personnel. In addition to this, there are technical requirements specific to the assignment for different types of trains. This places great demands on personnel to challenge themselves actively to ensure that they have the right competence and authorisation to be a resource in Euromaint's customer assignments.

At Euromaint, there are currently approx. 400 different rolling stock authorisa-tions. Ultimately this concerns carrying out different types of maintenance work on trains, in a safe way and with the right quality, regardless of whether the work is on coaches and locomotives for passengers or for freight traffic.

Holding due authorisation to carry out authorisation-classed work is a precondition for value creation, both for the individual and for Euromaint as a whole. There is a wide range between the basic authorisation "railyard safety" to "s-authorisation" (static converters). The first gives authorisation to work in the workshops. The latter is a cutting-edge authorisation held by some 50 employees.

This also places high requirements on the company to have an effective and attractive training programme in accordance with the requirements that are placed on the operational activities. Euromaint has a well-established system for dealing with training needs. Training is carried out mainly in-house, but external resources are also engaged when required.


An expert maintenance partner

Euromaint has a comprehensive offering of maintenance services for rolling stock. with high quality and high safety as the watchwords for the work, Euromaint wants to be the natural partner for creating available, reliable and safe fleets of rolling stock – regardless of whether the customer operates passenger or freight traffic.

twO MAin OFFERinGSEuromaint's offering can be divided into two main parts: maintenance of rolling stock that is used for passenger traffic and maintenance of rolling stock that is used for freight traffic. In addition to this, the company has an attractive maintenance offering that is directed at maintenance vehicles for rail infra-structure, such as track and overhead lines. Euromaint also provides the reprocessing of components as well as logistics services to train operators, owners of rolling stock and maintenance companies.

passenger traffic

Euromaint offers a complete main-tenance concept for train operators running passenger traffic. In this area, Euromaint usually works based on a turnkey commitment, in which the pay-ment model is based on the customers' rolling stock being available for traffic. This involves Euromaint taking the responsibility for the maintenance and receiving payment based on the number of kilometres the trains run. Euromaint and the customer work together to increase efficiency. When the customers are successful, Euromaint is successful.

Euromaint is Europe's largest inde-pendent supplier of maintenance services for rolling stock. The company has a complete maintenance offering for its customers – from light mainte-nance to heavy maintenance such as overhauls, as well as the reprocessing of components and supply of spare parts.

StREnGthEninG thE CuStOMERS' COMpEtitivEnESSEuromaint wants to create the conditions for increased travel by guaranteeing the availability, reliability and safety of the customers' rolling stock fleets. This strengthens the cus-tomers' competiveness. With Euromaint as their maintenance partner, customers can benefit from the company's unique experience, industrial approach and use of modern technology. They receive a customised maintenance process that is followed up according to clearly defined key ratios.

As an independent supplier, Euromaint is independent from the train operators and train manufacturers. In other words, there are no loyalties other than those to the customer. Everything Euromaint does is focused on giving the customer the best possible maintenance solution.

Euromaint takes full responsibility for the maintenance of rolling stock for passenger traffic. Customised maintenance solutions, adapted to the customer's traffic, are combined with an efficient spare parts and component supply system to increase the availability of the customer's rolling stock fleet.

EuROMAint'S OFFERinG

• Locations/depots• Maintenance windows• Availability requirements• Quality requirements

• Maintenance Documentation• Dimensioned actions• Expertise• Physical conditions

Spare parts

Rolling stockin traffic

ComponentsWorkshop

Long-term planning


OptiMiSED MAintEnAnCE SOlutiOnSEuromaint creates optimised mainte-nance solutions for its customers. The company's long experience of train maintenance means our customers can be assured that they have a sup-plier that understands their needs and customises its offering to support their operational activities. This is based on the customer's traffic planning. Mainte-nance is carried out during the times of day when passengers travel less, and is adapted to the quality requirements set for the condition of the rolling stock.

Every train has a maintenance plan that must be followed. The plan states when and how inspections and preven-tative maintenance will be carried out. Based on this, Euromaint develops a customised maintenance solution for the customer. Factors that play a role include where the rolling stock's oper-ating pauses are planned in and where

the workshops are located, when and how long the trains can be available for maintenance, and other specific requirements set by the customer. Requirements may concern aspects such as the level of comfort for passengers. The customer may request maintenance patrols at strategic end stations which carry out comfort related actions, for example ensuring all the toilets on a train are working properly.

Based on the analyses of the main-

tenance carried out, and the pattern of faults occurring in the rolling stock, Euromaint develops the maintenance plan and adjusts it, based on the rolling stock's real operating environment, in order to improve efficiency and reliability.

inDuStRiAliSED pROCESSTo optimise the flow of rolling stock through the workshop, Euromaint works according to an industrialised process, which is under continuous development,


SAFEty FiRSt

Every day, hundreds of thousands of people travel by train in Sweden – people who rely on the trains they travel in being safe. For Euromaint, safety goes without saying. Supplying high quality maintenance is about supplying maintenance that results in the customers' rolling stock complying with all statutory requirements for traffic safety.

However, this does not satisfy Euromaint; instead, it aims for continuous improvements in order to further increase safety. A few clear examples can be found in Euromaint’s work with the SJ 2000 trains. Critical elements of the maintenance work are carried out in demarcated areas, where entry is restricted to just the maintenance engineers. In the area, mobile phones are banned and talking with the engineers during the time they are inside is not permitted. Traceable, registered torque wrenches are used to tighten the bolts connected to the axletrees. This gives certified proof that every bolt has been tightened to exactly the correct torque.



in order to provide the customer with increased efficiency. The trains are taken in to the workshop according to carefully formulated plans. This is normally done during the trains' planned operational pauses. At this time, all the material and tools are in place for the planned action and the personnel are ready to go. The principal aim is to ensure the customers' rolling stock is idle in the workshop for as short a time as possible.

To increase availability, Euromaint can divide up more extensive actions over more than one occasion. A large preventive action which would normally take two days is split up into smaller steps and carried out during several planned visits to the workshop. In this way, the actions can be carried out

during the ordinary operational pauses, which increases the time the train can be used in traffic. Of course, any splitting up of the maintenance actions is done without sacrificing traffic safety.

Corrective maintenance, to remedy faults and deficiencies, is usually carried out during planned visits to the workshop or in connection with preventive main-tenance. When prompt action is needed in the field, Euromaint's mobile service teams can be called out on short notice.

REMOtE MOnitORinG OF tRAinSEuromaint works continuously to create more value for its customers. The use of Remote Vehicle Monitoring (RVM) is one example of these efforts. A piece of hardware is connected to the train's

computer and this makes it possible for Euromaint to obtain real time information about fault indications and the train's position. Euromaint's experi-enced maintenance personnel interpret the fault codes and draw conclusions about the actions that will be required to correct the fault the next time the train arrives at the workshop. This creates major benefits for the customers. Since the actions can be planned and the material ordered in advance, maintenance is more efficient and the time the train spends in the workshop is reduced. The system also increases the customers' opportunities for planning their traffic, since they obtain advance information on when a train will need to be taken into the workshop. With RVM,

Kundportal

Remote Vehicle MonitoringRemote Vehicle Monitoring − RVM, means the maintenance can be more efficient thanks to real time monitoring of the rolling stock's condition. When a fault arises in the electrical systems, Euromaint receives immediate information and can act immediately. RVM also means that planned maintenance can be prepared and systematic faults can be detected earlier. As a result, more trips can be run with the existing train fleet.

The information on the train's condition is displayed in a customer portal, where you can:

When the train comes in, the work is prepared and the action time can be shortened.

Euromaint makes a diagnosis, plans in the train in dialogue with the customer and prepares actions.

Customer portal (From 2013)

EuroMaint

EuroMaint's workshops

The train computer receives signals from the electronic systems on the train and generates fault codes

Via RVM the data is forwarded.

2

4

6

5

1

The data is transformed into information and sent to Euromaint for analysis and processing.

3

GSM

• see utilisation ratio• see improvement proposals• hold dialogue on rolling stock• obtain positional information to facilitate traffic planning• see key ratios


the onboard personnel do not need to spend as much time checking systems on the train, because it is now done automatically. This frees up time that can be devoted to providing increased service to the passengers.

EFFiCiEnt COMpOnEnt AnD MAtERiAl SupplyEuromaint offers a complete material supply service to its customers, including sourcing, stock-keeping, intelligent logistics solutions and spare parts. Thanks to an efficient purchasing organisation which has established relationships with all of the important manufacturers and subcontractors, the company can create cost benefits when purchasing spare parts; savings that benefit the customers. The company also offers reprocessing of high-value components such as wheels, bogies and traction motors. An advanced logistics system ensures the right components are in the right place at the right time before every maintenance action.

thE OFFERinG in GERMAnyThe offering to customers operating passenger traffic in the German market is rather different to that in Sweden. In Germany, Euromaint has traditionally concentrated on overhauls and refurbish ment of passenger coaches. With Germany as a base, these services have also been offered to customers in neighbouring countries. During the

coming years, the number of overhauls of so-called EMU and DMU trains (Electric Multiple Unit and Diesel Multiple Unit) will increase.

For the German market, Euromaint also offers roll-out services, where the company, on assignment from the train manufacturers, completes and fine tunes passenger trains prior to their delivery to customers. This is an operational activity that is growing in importance.

Work is also currently underway to develop the maintenance offering for passenger traffic, in a similar way to how Euromaint works in Sweden.

Freight traffic

Euromaint has a comprehensive range of maintenance services for operators running freight traffic. In contrast to the way things are for passenger traffic, where preventive maintenance is a central component, the maintenance of freight wagons has a low proportion of preventive actions. The majority of maintenance consists of unplanned, corrective actions such as replacing brake blocks or wheels. In addition, a maintenance plan is followed that, in general terms, involves the freight wagons going through major overhauls every four years. Some wagon owners and operators like their wagons to be inspected regularly, for example on an annual basis, to reduce corrective maintenance.

A uniQuE pOSitiOnEuromaint holds a unique position in the European market for the maintenance of rolling stock for freight traffic. The company has a network of workshops covering large areas of Germany as well as a presence in important ports in the Benelux region. Combined with the Swedish workshops, this means that Euromaint can follow its customers – the large international wagon owners – from Luleå in the north to Oberhausen in the south. The benefit for customers is that they can reduce the number of maintenance suppliers, resulting in more efficient administrative processes and follow up.

ExpERt At OvERhAulS AnD REpROCESSinG OF COMpOnEntSEuromaint has a strong position in the market for the overhaul and refurbish-ment of freight wagons. The operational activities are based at the company's workshops in Germany, which are focused on this type of work. At the Kaiserslautern workshop, Euromaint also offers reprocessing of high-value components such as couplers and draught gear. In Sweden, Euromaint carries out overhauls at its workshops in Landskrona and Luleå.

The company has expertise and experience, regardless of whether the overhaul affects wagons for transporting coal and iron ore, tanker carriers or container carriers. This is combined with


REMOtE vEhiClE MOnitORinG FOR EFFiCiEnt MAintEnAnCE

In Bergslagen, there are many commuters. Tåg i Bergslagen has been set up to increase the opportunities for commuting. When Tåg i Bergslagen, together with Tågkompaniet, which operates the trains, were planning to increase traffic

using the existing rolling stock, they turned for help to Euromaint, which increased the efficiency of the rolling stock maintenance thanks to remote vehicle monitoring.

Remote vehicle monitoring makes it possible to identify where, when and how frequently a fault occurs while the train is in operation and acts as a complement to traditional preventative and corrective maintenance. By collecting status information and fault indication data even before the train arrives at the workshop, valuable information is obtained about the rolling stock. Planning and preparation are optimised, giving more efficient maintenance.

On the second day after the system had been brought into use on the rolling stock, a deviation was detected that could have caused a stoppage in traffic. The rolling stock was immediately directed to the workshop for action.

"I am reasonably convinced that we avoided a stop on the line with everything that would mean, thanks to this system. A stoppage involves problems for passengers, evacuations, recovery and so on, so I am very happy the fault was detected in time", says Håkan Jarl, Traffic Manager at Tågkompaniet.

Challenge: Tåg i Bergslagen is increasing the opportunities for commuting to work, study, duty or leisure, in the entire region. To achieve satisfied passengers, the trains must function as they should and run on time.

Customer value: Efficient and optimised train maintenance and punctual rolling stock.

Euromaint's solution: Installation of a system for remote vehicle monitoring, RVM, making it possible to identify where, when and how frequently faults occur.



an attractive offering to customers who need to refurbish their freight wagons. For example, this could concern a freight wagon for transporting steel that needs to be adapted for transporting timber instead.

FOCuS On MObilE MAintEnAnCEMobile maintenance has become an increasingly important part of the total maintenance solution for freight rolling stock. This involves remedying faults and damage directly on site as far as possible. The reason is simple; it increases availability. In the case of damage, the operator who is renting the wagon to transport his freight wants the wagon to be unavailable for as short a time as possible. If the maintenance supplier can offer service on site, the stoppage will be significantly shorter than if the wagon has to be transported to a workshop. Mobile maintenance is of particular importance in northern

Sweden, where it can be a long way to the nearest workshop.

Euromaint has developed several different mobile maintenance solutions for supplying help alongside the track, or on site with the customer in ports and at terminals. This includes light, equipped vans for simpler actions as well as heavy trucks with equipment for handling more complex damage. Buffers, springs and wheels can be replaced today directly at the scene of the damage. With a portable lathe, even wheels can be turned in the field. Moreover, Euromaint has a mobile concept for testing brakes, which means the rolling stock no longer needs to be transported to the workshop for these tests.

MAintEnAnCE OF FREiGht lOCOMOtivES Euromaint offers maintenance of freight locomotives for the Swedish market, giving the company a unique offering

for freight compared to the competition, which maintains either locomotives or freight wagons. Euromaint has a complete range of maintenance services for corrective maintenance and overhauls as well as the reprocessing of components. The company also carries out the refurbishment of freight locomotives. One example is the four model T46 terminal locomotives that are being refurbished on behalf of LKAB. Refurbishments are extensive assign-ments that set stringent requirements for expertise and experience, since they concern, in principle, rebuilding a loco-motive from the ground up.

COMpREhEnSivE MAintEnAnCE FOR StEEl tRAnSpORtS

Euromaint is responsible for maintaining some 300 wagons hired out by the Swiss company AAE to its industrial customer, SSAB. The wagons in SSAB's "steel train" annually freight about two million tons of steel from Luleå to the steelworks in Borlänge, in the face of considerable climatic challenges presented by a great deal of snow and severe cold.

Euromaint provides a customised maintenance solution focusing on the availability of the wagons. Efficiency, flexibility and reliability are important bywords for the customer. With almost 30 years' experience of the transport challenges posed by cold climates, Euromaint is contributing to AAE's development of technology and maintenance solutions for transport. Among other things, Euromaint has put forward a concept involving preventive wheel replace-ments in order to increase wagon availability during the otherwise critical winter period.

"Euromaint frequently provides more technical support than we requested. Something we are very pleased with", says Roland Rubischung, Operations Manager Scandinavia for AAE.

Challenge: Freighting steel from Luleå to Borlänge in the face of climatic challenges including a great deal of snow and severe cold.

Customer value: Undisrupted production and available rolling stock.

Euromaint's solution: Provision of a customised solution including preventive wheel replacements in order to increase availability of the wagons.

18


Rotterdam

DuisburgAntwerpen

Wolfsburg

LeipzigDelitsch

WustermarkAngermünde

Stockholm

Jelgava

MalmöLandskrona

Göteborg

ÅmålLinköping

HallsbergÖrebroVästerås

Gävle

Sundsvall

Vännäs

Luleå

Falköping

Borlänge

Kaiserslautern

Oberhausen Ingolstadt

Four business areas

Euromaint conducts operations in four business areas. Each business area has its own unique expertise and experience, and has the task of creating maximum profitability for its part of Euromaint's offering.

EuROMAint'S buSinESS AREAS

Euromaint's presence Workshop Service station Only mobile maintenance

passengers Number of employees at 31 December: 1,036

This business area offers a complete maintenance concept to train operators running passenger traffic – everything from light maintenance to more extensive maintenance actions. In Business Area Passenger, Euromaint normally operates based on a turnkey commitment, in which the payment model is based on the customers' rolling stock being available for traffic. This involves Euromaint taking the responsibility for the maintenance and receiving payment based on the number of kilometres the trains run.

Components Number of employees at 31 December: 300

Offers complete material supply to all types of customers in the rail transport industry; everything from the reprocessing of components to sourcing, stock-keeping, intelligent logistics solutions and the supply of spare parts. Business Area Components has a large quantity of its own business concerning the reprocessing of components for train operators and other maintenance companies. It is also an internal resource serving the other business areas with reprocessing of components and spare parts. As a supplier of logistics, the Business Area has revenues from agreements with all types of customers in the rail traffic industry, both in Sweden as well as in Norway and Denmark. The agreements can cover everything from parts of the supply chain to the complete responsibility for supply.

work Machines Number of employees at 31 December: 37

Offers a complete maintenance programme directed at machines and tools that are used for maintenance and construction of the infrastructure, such as track and overhead lines. The business model usually consists of framework agreements that contain fixed actions, which are usually called off by the customer, as well as service packages based on the machines' running hours. Corrective maintenance and field service are carried out either against tender or on a running account basis.

Freight/Germany Number of employees at 31 December: 968

This business area provides a range of maintenance services for freight rolling stock. The offering covers planned and corrective maintenance (both in the workshop and mobile) as well as overhauls, refurbish-ments and reprocessing of components. The planned maintenance is based on framework agreements that define the actions to be carried out in accordance with a maintenance plan. Corrective maintenance is carried out either against tender or on a running account basis. Major and extensive actions, such as overhauls and refurbishments, also follow established maintenance plans.



The rail market

Rail is a central part of the European infrastructure for the transport of passengers and freight. in a time when the environmental burden, globalisation, efficient use of energy and growth are questions high on the agenda, rail is an issue of great national interest. this is also a shared interest for the Eu as a solution to many of the challenges facing Europe as it tries to provide for sustainable development in the future.

Population growth and demographyThe world is also becoming a little larger in terms of the world's population growth. Above all, in Europe we are seeing concentrations of population around larger cities and regions, where efficient local and regional transport is a precondition for continued growth.

Environmental challengesClimate changes are a consequence of an increasing number of people wanting their share of a limited quantity of resources. Limiting these changes requires transports with the lowest pos-sible environmental burden. To achieve efficient transport, coordination also has a central part to play in reducing the con-sumption of natural resources. Rail has an important part to play in solving the environmental challenges of the future.

Liberalisation and deregulationIncreased globalisation and increased coordination have brought about liberalisation within many areas of society. From a European transport perspective, freight traffic has been a forerunner, with deregulation starting some 20 years ago. The deregulation of

The rail markets in the EU's member states are undergoing change. The previously state-controlled national rail systems are being opened up, or will be opened up, to competition in accordance with the EU's principles on free movement and free competition. This is a process that has reached different stages in different countries. There are also differences between passenger traffic, which in several aspects is still in its infancy, and freight traffic, which is generally fully deregulated.

Driving forces and conditions in Europe

As a means of transport, many aspects of rail reflect Europe's general development – a development involving a number of challenges.

GlobalisationThe world has shrunk as globalisation has brought countries and companies closer to each other. Globalisation requires efficient transport systems for it to function and this is influencing rail transport.

thE RAil MARKEt

EuROMAint'S CuStOMERS

Euromaint's customers consist of the rail market players that need to maintain train units, coaches, wagons and locomotives. The customer groups primarily include operators and rolling stock owners within passenger and freight traffic. Here is a selection:

• AAE• Arriva• A-train• DB• Green Cargo• Infranord• SJ• TWA• Veolia• VTG• Wascosa

EuROMAint'S COMpEtitORS

Depending on geographical market and segment, Euromaint faces different types of competition. Many competitors are small companies that have chosen to supply a specific area or a specific service. Some are larger, with a more complete offering such as the major rolling stock suppliers.

One type of competition are the operators with their own workshops. This is particularly common in Germany, where many operators choose to handle parts of the maintenance themselves and engage Euromaint for other parts. In this way, Euromaint has customers that are also included in its list of competitors. Examples of customers:

• Alstom• Alstom LHB• Bombardier• DB• Mantena• Villmann• Operators with their own maintenance



systems are attractive to passengers coming from other countries, but the real cross-border passenger traffic is still small. One particular reason for this is the technical differences between coun-tries. The forces driving the development of passenger traffic are the same at the national level as for the whole of Europe.

SwEDEnSwedish passenger traffic by rail has been deregulated in several steps, starting in the early 1990s. When the Swedish state split up what was then Statens Järnvägar into Banverket, with responsibility for the railway track, and SJ, which would operate the trains, it opened up an opportunity for new players to enter the Swedish rail system. The background to this was the fact that the state wanted to get away from the subsidies SJ was receiving to cover operating deficits and to counteract the closure of unprofitable lines. At the

passenger traffic has begun in several European countries but is far from fully completed.

EuROMAint in EuROpEEuromaint is a Swedish company with an international offering and operational activities in five European countries. Operational activities are represented by more than 25 workshops and mobile service units in Belgium, Latvia, the Netherlands, Sweden and Germany. The offering is pan-European, while the majority of the services are delivered in Sweden and Germany.

the market for passenger traffic

Passenger traffic is largely a national question. In the EU, each member state has its own history, and questions con-cerning passenger traffic aim above all to satisfy the national interests. Obviously, it is also important that the national rail

thE RAil MARKEt


same time, public transport authorities were given responsibility for the traffic on regional lines. The idea behind the changes was that a railway sector with free competition would have better pre-conditions for achieving efficiency and profitability.

Today, passenger traffic is completely deregulated thanks to a relatively fast pro-cess during the last three to four years. The final step started in 2009, when the Swedish rail network was opened up for traffic at the weekends. In the following year, all passenger traffic in Sweden was opened up for competition. Due to the long application process, and the time when the rail paths were allocated, it was only at the turn of the year 2011/2012 that Sweden finally had a fully deregu-lated market for passenger traffic by rail.

Market structureTrafikverket (the Swedish Transport Administration) is the government agency responsible for operating and maintaining the rail track and associated infrastructure. It is also Trafikverket that allocates the train paths, that is to say, the right to traffic the track over a given route, at a given time; something for which they charge.

The fundamental purchaser of rail traffic is a so-called public transport authority, which has the task of satisfying the needs for travel in a given region. In Sweden, there are some twenty public transport authorities with responsibility for planning and ordering local and regional traffic in their respective counties. Some counties have com-bined to coordinate traffic, for example Norrtåg, which covers the traffic in four counties in total.

Local and regional traffic is rarely profitable and requires financial support. The Public Transport Administrations procure the traffic from operators that run the train routes for a fixed period of time and with a contractual payment. In addition to the traffic ordered, the public transport authority can also allow the operator to run trains on completely commercial terms.

GERMAnyGermany has a well-developed and efficient railway network and the country is dependent on well-functioning passenger traffic. Today, the German passenger traffic is deregulated and new operators are winning an increasing number of procurements. The first step in deregulation was the so-called railway reform that in 1994 brought

together the state railways in the former East and West Germany into one state railway company, Deutsche Bahn (DB). In a second step, the operational activities were split up into a number of subsidiaries; this included separating transportation units from infrastructure units. In connection with this, the responsibility for shorter rail routes was also transferred to the regional level.

Market structureLocal and regional traffic today is fully competitive. Local traffic is administered at the municipal level. Several munici-palities have joined together in various types of local transport associations (Verkehrsverbund). In total in Germany, there are hundreds of local transport associations that, to varying extents, procure traffic on a competitive basis.

Germany's 16 states are responsible, independently of each other, for passenger traffic in their region. The states are of different sizes and they more or less have their own solution for supplying passenger traffic. Longer rail routes are still dominated by DB, without any real competition.

In Germany, there are also a number of government agencies that exercise market supervision – a consequence of the fact that the rail infrastructure is administered by a company in the DB Group. Some of the most important areas they monitor are the allocation of train paths and pricing.

thE RAil MARKEt

thE MAintEnAnCE MARKEtThe majority of passenger traffic is procured; that is to say, there is a pur-chaser – the public transport authority or equivalent – of the rail traffic. When operators participate in a procurement, they must guarantee that they have a competent partner to assist them in supplying well-maintained trains, in a safe and reliable manner, as well as in strengthening the customer's com-petitiveness and increasing the train's popularity as a means of transport.

As a result of Euromaint's independ-ence from manufacturers and others, the company can offer its services to several players during a procure-ment process. An important part of Euromaint's work is creating close rela-tionships with the international players that are increasingly participating in Swedish procurements. Despite its strong position, Euromaint still has great opportunities for growth.

The lengths of agreements for procured traffic are usually long and, in Sweden, normally between five and ten years. In Germany, the length of the agreements is longer and may extend up to 15 years. Shorter agreement periods are encountered on both markets. Because the periods of the agreements are long, several years can go by without any major business on the market. This means that winning or losing a procure-ment process has a far-reaching effect on Euromaint's operational activities.


domestic freight traffic following a few years later. In connection with the con-version of SJ into a state owned public company in 2001, the state separated the freight traffic business and organised it as the state-owned joint stock com-pany, Green Cargo.

the market's playersGreen Cargo is still the dominating player in Sweden, but there are also a number of competing operators. Their main offering is based on operating freight locomotives, which they either own themselves or rent from a rolling stock owner. There are a large number of companies in the market specialising in renting out freight wagons. The wagons are available in many different versions adapted to the specific freight to be shipped. During recent years, the market has seen a clear trend in which several large international wagon owners have entered the market.

to grow in the market. Therefore, Euromaint is working actively to develop its offering to the market for maintaining rolling stock for passenger traffic.

the market for freight traffic

The EU has long worked to create the conditions for a well-functioning pan-European rail freight market. Apart from the driving forces that generally apply for rail, freight traffic is greatly affected by the prevailing market conditions.

SwEDEnSweden is a country with long distances and it is dependent on well-functioning rail-borne freight traffic. Moreover, Sweden is an export nation, including steel and forestry products that are mainly transported by rail. During the 1990s, rail freight traffic was deregulated. Cross-border freight traffics were opened up first of all, with

thE RAil MARKEt


On the German market, it is usual for the smaller train operators to manage both regular maintenance and over-hauls in-house. On the other hand, the larger operators rarely have the capacity to manage all of their rolling stock maintenance. For these players, Euromaint is a very interesting mainte-nance supplier. At the same time, Euromaint is also an interesting supplier for the maintenance smaller players cannot handle in-house.

In Germany, there is a change underway in the market for the maintenance of passenger traffic. In connection with deregulation 10-15 years ago, many older trains were replaced by new modern motor units (EMU/DMU). These new trains will now need over-hauling. Together with the opportunities that are created when new operators enter the market with their particular maintenance needs, this is creating great opportunities for Euromaint

Overhaul of locomotives at the Svartön workshop, Luleå, Sweden.


GERMAnyWith its central location in the middle of Europe, bordering on nine other countries, Germany is a transit market for the pan-European distribution of freight. Germany is also one of the world's largest exporting countries. The rail transport network is well developed. When the German state split up its rail operations, DB Cargo was founded to manage freight traffic. After a number of reorganisations and changes of name, operational activities are organised today in DB Schenker Rail.

the market's playersDB Schenker Rail is Europe's leading transport company and naturally dominates the German market. With German's position as a rail nation, and the fact that large parts of Europe's freight traffic pass through the country, it is natural to talk about the German and the European markets as synonyms.

Today, there are 15 dominating private wagon owners in Europe. All of them have their main operations in Germany. Together, they control more than two-thirds of the European rail freight market.

thE MAintEnAnCE MARKEtFreight traffic in Europe has been deregulated for some 20 years and in all respects it is a more mature market than that for passenger traffic.

On both the Swedish and the German market, leasing companies rent out loco-motives to operators. The leasing com-pany either rents out its locomotives including complete maintenance, for which they seek partnership with a main-tainer such as Euromaint, or the leasing company only takes responsibility for the heavy maintenance and leaves the

operator to provide for the other main-tenance. In this case, Euromaint can obtain two contractual partners for the maintenance of the same locomo-tive; one for the light maintenance and one for the heavy maintenance. There are also operators that own their own locomotives.

On the freight wagon side, it has become increasingly common during recent years for major international wagon owners to rent out freight wagons in Sweden. The wagons are either rented out including maintenance, with the wagon owner being respon-sible for procuring the maintenance, or the wagons are rented out to an operator who has the responsibility for establishing relationships with a mainte-nance company. Thanks to Euromaint's unique pan-European offering, the company is an attractive partner for these international players.

EuROMAint'S COMpEtitivE ADvAntAGES

Euromaint has a unique market position. The company is Europe's largest independent supplier of maintenance services for the European train market. The company has long experience of train maintenance and Euromaint's employees possess specialist expertise that is difficult to find anywhere else on the market.

Euromaint's ambition is to be a complete maintenance partner, something for which the company is increasingly recognised. Thanks to its unique expertise, Euromaint can offer customised solutions that many of its competitors cannot manage, giving the operator the possibility to focus on train operation and passengers.

thE RAil MARKEt


Dick Fredriksson inspects a locomotive at the Svartön workshop, Luleå, Sweden.

On the German market, Euromaint is the largest independent maintenance supplier for freight wagons. As Europe's largest transit market, Germany is the main market for major international wagon owners, and the leading wagon owners are customers of Euromaint.

One of Euromaint's customers in Germany is DB Schenker Rail. Euromaint carries out part of the main-tenance that, for various reasons, DB does not carry out in-house. During recent years, DB has greatly reduced its number of freight wagons and changed its maintenance strategies. This has happened partly as a reaction to the European recession and partly because a large number of the wagons they previously provided are no longer in demand by the market. For Euromaint, this has resulted in a substantial reduction in turnover.


Five-year overview

SEK million note 2012 2011 1) 2010 1) 2010 2009 2008inCOME StAtEMEntNet turnover 2,489 2,860 2,814 3,532 2,510 2,324Operating expenses -2,420 -2,727 -2,835 -3,602 -2,352 -2,165Other income/expenses 33 28 63 63 17 –Income from divestments/associated companies – -2 – – – –EbitDA 102 159 41 -7 175 159Depreciation, amortisation, and impairment -51 -57 -56 -59 -42 -38EbitA 51 102 -15 -67 133 122Depreciation, amortisation, and impairment of intangible assets – -2 -4 -4 -4 -4Ebit 51 100 -19 -71 128 118Financial income 2 3 2 2 1 3Financial expenses 2) -48 -51 -63 -63 -59 -61Ebt 5 52 -79 -132 70 60Tax -18 43 33 37 -13 -11Profit/loss from discontinued operations – -118 -30 – – –profit/loss for the year/period -12 -23 -77 -95 57 49Income attributable to parent company's owners -12 -23 -77 -95 57 49

Items affecting comparability -30 -35 -184 – – –Operating EbitA 81 137 169 -67 133 122

StAtEMEnt OF FinAnCiAl pOSitiOnGoodwill 710 712 – 770 719 692Other non-current assets 8 9 – 18 23 14Tangible non-current assets 164 185 – 212 202 208Financial assets, non-interest-bearing 0 24 – 37 10 11total non-current assets 882 930 – 1,037 954 925Inventories 432 454 – 535 375 264Receivables, non-interest-bearing 459 690 – 798 776 675Cash, bank and other current investments – – – – – 33total current assets 892 1,144 – 1,333 1,151 973tOtAl ASSEtS 1,774 2,075 – 2,370 2,105 1,897Equity attributable to parent company's owners 3) 594 737 – 668 516 447Provisions, interest-bearing 11 19 – 17 15 19Provisions, non-interest-bearing 32 47 – 83 22 32Liabilities, interest-bearing 577 628 – 724 756 746Liabilities, non-interest-bearing 548 632 – 865 786 644Financial liabilities, other 11 11 – 13 10 8tOtAl EQuity AnD liAbilitiES 1,774 2,075 – 2,370 2,105 1,897

KEy FiGuRESEBITA margin (%) 2.1 3.6 -0.5 -1.9 5.3 5.2EBT margin (%) 0.2 1.8 -2.8 -3.7 2.8 2.6Return on equity (%) -1.8 – – -16.0 11.9 11.5Return on capital employed (%) 4.1 – – -5.1 10.4 9.8Equity ratio (%) 33 36 – 28 24 24Interest-bearing net debt (SEK million) 588 647 – 741 772 732Debt/equity ratio (multiple) 1.0 0.9 – 1.1 1.5 1.7Average no. of employees 2,437 2,442 2,373 2,713 1,909 1,793

Note1) The profits for 2010 and 2011 are pro forma taking into account the discontinued operation (Business Area Refurbishment)

and sale of business (Euromaint Industry).2) Excluding interest on shareholder borrowings.3) As of 31 December 2012, equity includes shareholder borrowings of SEK 503 million (449).

FivE-yEAR OvERviEw



The Board of Directors and the CEO of Euromaint Gruppen AB, company registration number 556731-5402, with registered office in Stockholm, hereby submit the Annual Report for operational activities during the financial year 2012.

OwnERSEuromaint Gruppen AB is a wholly-owned subsidiary of EMaint AB, company registration number 556731-5378, with registered office in Stockholm, which is owned by Ratos AB. Euromaint Gruppen AB acquired 100% of Euromaint AB on 1 September 2007 from the previous owner AB Swedcarrier.

OpERAtiOnS AnD ORGAniSAtiOnEuromaint strengthens its customers' competitiveness by ser-vices and products that increase the availability, reliability and service life of production equipment in the rail transport sector.

Through operational activities in Euromaint Rail, Euromaint can be found throughout Sweden, from Luleå in the north to Malmö in the south, in Jelgava in Latvia, and since 2010 in Germany and the Netherlands. The head office is in Solna.

thE buSinESS EnviROnMEntRail is a central part of the European infrastructure for the transport of passengers and freight. It is a common interest for the EU as a solution to many of the challenges facing Europe as it tries to provide for sustainable development. National rail systems are being opened up in accordance with the EU's principles on free movement and free competition. This is a process that has reached different stages in different countries. Passenger traffic is still largely a national question, while the EU has long worked to create the conditions for a well-functioning pan-European rail freight market. A deregu-lated market benefits Euromaint in its role as an independent player for maintenance, without links to train operators or manufacturers. During 2012, market conditions have affected Euromaint Rail's business, not least in Germany, where among other things the company's largest customer, DB, has reviewed its maintenance strategy and chosen to carry out its mainte-nance internally. However, Euromaint Rail has not lost shares of the total markets.

vARiOuS MEAnS OF pOtEntiAl GROwthWorld class operational activities in the domestic markets are a necessary foundation for expansion. For the company to be the leading independent player in train maintenance, stability, profitability, a good image and growth are required. Euromaint's independent position is an important factor for creating an attractive image as a partner. The business model makes it clear that, as an independent partner, the company shares the same goals as the customer when it comes to optimising the activities for increased profitability, and that the high level of quality in the domestic market can be transferred to new markets. The work to internationalise operational activities is continuing.

EMplOyEESThe average number of employees in the Group was 2,437 (2,761).

EnviROnMEntAl iMpACtCommon to all of EuroMaint Rail's production areas is that their main environmental impact is on air and water and, to a certain extent, soil. Its activities are classified as environmentally hazardous, and require reporting to the environ mental authorities. The environmental authorities decide whether the degree of environmental hazard requires licensing or reporting. If EuroMaint Rail does not receive the environmental licences required for production, this can limit the company's ability to fulfil its commitments to its customers. If there is a short delay in licences being issued, it is possible to switch workshop activities in order to limit economic damage. EuroMaint Rail's units are obliged to submit reports in accordance with the Ordinance concerning Environmentally-Hazardous Activities and the Protection of Public Health (1998:899), with the exception of its activities in Örebro, which are subject to licence. Notifiable activities carried out by EuroMaint Rail include vehicle cleaning, painting, de-icing, the handling of diesel fuel etc. The licence requirement in Örebro is necessitated by the large workshop area, as well as extensive use of chemicals in connection with activities such as vehicle cleaning and painting.

RiSKS AnD unCERtAinty FACtORSThe Group's companies have a customer structure in which a few customers account for a large proportion of the Group's turnover. The loss of one major customer, or a significant customer contract, would result in significant readjustments for an adjustment of the companies' operational activities to match the reduced turnover. During a transitional period, the profitability of companies would be reduced in any such scenario. However, as customer relationships often include several different contract territories with varying contract lengths, this risk is distributed over time.

The Group and the industry in general are affected by the weather conditions, where severe winters with restricted passability for rail traffic could affect costs. Otherwise, the company is affected by the general trends in demand and market conditions in each sector.

Multi-yEAR REviEw AnD KEy RAtiOSFor key ratios see "Five-year overview" on page 25.

FinAnCiAl inStRuMEntS AnD RiSK MAnAGEMEntThrough its operations, Euromaint is exposed to financial risks, including the effect of changes in prices on the loan and capital markets, exchange rates and interest rates. The Group's overall risk management focuses on the unpredictability of the financial markets and aims at minimising potentially unfavourable effects on the Group's financial results. Financial operations in the Group are centralised in Euromaint Rail AB's finance function. The finance function acts as an internal bank and is responsible for the sourcing of capital, cash management and financial risk management. The operations are regulated through the Group's Financial Regulations.

Directors' report

DiRECtORS' REpORt


iMpORtAnt FinAnCiAl RiSKS thAt ARE MAnAGED ARE:

MARKEt RiSKThe risk that the value of, or future cash flows from, a financial instrument will vary due to changes in market prices. Currency risk and interest rate risk constitute market risks.– Currency riskCurrency risk refers to the risk of exchange rate fluctuations negatively affecting the Group's income statement, balance sheet and/or cash flows. Currency risks exist, both in the form of transaction risks and translation risks.– Interest rate riskInterest rate risk refers to the risk of a negative effect on the Group's financial results resulting from changes in market interest rates.

OthER RiSK– Credit riskCredit risk is the risk generated by the fact that the credit rating of the investor's counterparty can change in an unpredictable manner, thereby resulting in a loss for the Group.– Liquidity and refinancing riskRefinancing risks refer to the risk that the refinancing of mature loans will become difficult or costly and that Euromaint will thereby have difficulty fulfilling its payment obligations. Liquidity risk refers to the risk of difficulty in fulfilling the obligations associated with financial liabilities.

For more information about financial risks, see note 22.

EvEntS OF MAtERiAl SiGniFiCAnCE in thE FinAnCiAl yEARDuring 2012, market conditions have affected Euromaint's business, not least in Germany, where among other things the company's largest customer, DB, has reviewed its mainte-nance strategy and chosen to carry out its maintenance inter-nally. The declining volumes have led to the initiation of cost savings and an overhaul of the organisation and, among other things, the German business has transferred its head office from Mannheim to existing premises in Delitzsch. During the autumn, a new CEO was appointed for the German company.

The Swedish operational activities are not as dependent on the freight business and they have been able to continue the work on developing the maintenance concept and strengthening quality, as well as helping to make our existing customers more competitive by actively proposing improve-ments for their rolling stock. 2012 has been a transitional year in which no major procurements have been made. Nevertheless, the Swedish business concluded a contract for the maintenance of Öresundstågen, in collaboration with DSB Vedligehold, as well as a contract with Västtrafik for maintenance of their twenty-two model X 61 train units.

FutuRE DEvElOpMEntEuromaint Rail has a strong position in the Swedish train maintenance market. Through the acquisition of RSM in 2010, Euromaint Rail considerably strengthened its operational activities directed at freight traffic and established itself in the increasingly deregulated European train market. Changes in maintenance strategies among the German freight wagons mean that Euromaint needs to adjust its German operational activities and take a closer look at the possibility of increasing its share of the maintenance of passenger coaches. Euromaint Rail is already the leading independent player for train main-

tenance in Europe and, thanks to its position, Euromaint has good opportunities to take advantage of the ongoing deregula-tion of the train operator market in Europe.

Euromaint has identified a number of areas that must be fulfilled in order to attract current and potential customers; these areas constitute the Group's customer promises. The focus areas are:– Stability – be a stable partner and operate a stable business – profitability – create profitable growth, good control of costs

and strong cash flow– image – strengthen the market's confidence by standing for

quality, delivery and innovation– Growth – grow in the Nordics as well as in the rest of

Europe, organically and through acquisitions

Based on these areas, Euromaint wants to further strengthen its position on the market.

thE pAREnt COMpAnyEuromaint Gruppen AB carries out internal management services for other companies in the Group, as well as managing Group-wide finance agreements with banks. Apart from that, there are no external activities. Turnover was SEK 248 thousand (1,787) and operating result SEK -23 thousand (-83,815). The profit/loss for the year amounted to SEK -62,145 thousand (-139,783).

COnSOliDAtED tuRnOvER AnD RESultSTurnoverTotal earnings amounted to SEK 2,524 million (3,229).Operating resultOperating profit amounted to SEK 51 million (64), giving an operating margin of 2% (2%).Financial itemsNet financial income amounted to SEK -100 million (-90).Cash flowCash flow for the period after investments amounted to SEK 5 million (-40).Equity/assets ratioThe equity/assets ratio amounted to 33% (36%). The equity/assets ratio is measured as equity and shareholder borrowings in relation to the balance sheet total.

AppROpRiAtiOn OF pROFitS in thE pAREnt COMpAnyProposed appropriation of profits

The parent company's profit/loss for the year was SEK:

-62,144,677

Available to the Annual General Meeting, SEK:

Profit brought forward 245,569,352

Profit/loss for the year -62,144,677

Total 183,424,675

The Board proposes that the accumulated profit be appropriated as follows:

Distribution to shareholders 11,792,000

Carry forward 171,632,675

Total 183,424,675

The income statement and balance sheet will be presented for adoption at the Annual General Meeting on 20 March 2013.

DiRECtORS' REpORt

2828 EuroMaint Annual Report 20122828 EuroMaint Annual Report 2012

Consolidated income statement

SEK thousands note 2012 2011Operating incomeNet turnover 2, 25, 29 2,489,372 3,188,073Other operating income 3 34,245 40,726total operating income 2,523,617 3,228,799

Operating expensesCost of goods and services sold 2 -819,683 -1,129,943Other external expenses 4, 19 -543,955 -636,197Personnel costs 5 -1,056,840 -1,281,977Amortisation 6 -6,967 -41,182Depreciation 7 -44,258 -54,191Result from participations in associates – -2,770Results from sales of subsidiaries – -6,415Other operating expenses 3 -879 -12,331total operating expenses -2,472,582 -3,165,007

Operating result 51,035 63,793

Financial income 8 2,058 3,342Financial expenses 2, 8 -102,243 -93,072net financial items -100,185 -89,730

profit before tax -49,150 -25,937

Tax 9 -17,578 41,246profit or loss for the year from continuing operations -66,728 15,309

Income from discontinued operations 28 – -118,492

profit/loss for the year -66,728 -103,183

Parent company shareholders' share of the profit/loss for the year -66,728 -103,183Earnings per share, undiluted -667 -1,032

Consolidated statement of comprehensive income

SEK thousands 2012 2011profit/loss for the year -66,728 -103,183

Other comprehensive incomeChange to translation reserve for the year -6,053 -2,099Change in hedging reserve for the year -1,038 2,078Currency adjustment 45 –Tax attributable to other comprehensive income – – Other comprehensive income for the year -7,046 -21total comprehensive income for the year attributable to parent company shareholders -73,774 -103,204

thE GROup


Consolidated statement of financial position

SEK thousands note 2012 2011ASSEtS

non-current assetsIntangible non-current assets 6 717,493 720,850Property, plant and equipment 7, 20 164,458 185,371Participations in associated companies 11 215 482Deferred tax assets 9 – 23,585total non-current assets 882,166 930,288

Current assetsInventories 13 432,319 454,336Accounts receivable 14, 22, 24 350,793 369,000Receivables from Group companies 14 16,000 183,434Tax assets 14 6,270 15,966Other receivables 14, 24 28,734 46,040Completed, not invoiced 14, 26 3,200 19,577Prepaid expenses/accrued income 14 54,488 56,075Cash and cash equivalents 21 – – total current assets 891,804 1,144,428

tOtAl ASSEtS 1,773,970 2,074,716

liAbilitiES AnD EQuity

EquityShare capital 100 100Other capital contribution 432,316 432,286Reserves -31,607 -24,516Profit brought forward including profit/loss for the year -309,763 -119,651Equity attributable to parent company's shareholders 91,046 288,219

non-current liabilitiesNon-current liabilities 15, 20, 22, 24 401,800 444,880Shareholder borrowings 2, 15, 22, 24 503,198 448,669Provisions for pensions and similar obligations 12 11,112 18,734Other provisions 16 27,239 33,339Deferred tax liabilities 9 5,113 13,850Other non-current liabilities, interest-bearing 15 11,611 13,276Other non-current liabilities, not interest-bearing 24 15,438 11,246total non-current liabilities 975,511 983,994

Current liabilitiesAdvance payment from customers 17 8,252 33,590Accounts payable 2, 17, 24 239,347 254,514Liabilities to Group companies 17, 24 – – Liabilities to credit institutions, interest-bearing 15, 17, 24 163,215 170,127Other current liabilities 17, 24 31,101 42,876Invoiced, not completed 17, 27 62,039 70,509Accrued expenses/deferred income 17 203,459 230,887total current liabilities 707,413 802,503total liabilities 1,682,924 1,786,497

tOtAl EQuity AnD liAbilitiES 1,773,970 2,074,716

pledged assets and contingent liabilities Pledged assets, floating charges 18 251,466 289,986Contingent liabilities 18 117,397 84,751

thE GROup


Consolidated statement of changes in equity

SEK thousands note Share capitalOther capital contribution Reserves

Retained earnings

including profit or loss for

the year total equityEquity attributable to parent company's shareholders

Opening equity 1 January 2011 100 432,257 -24,495 -46,746 361,116

Transfer from unrestricted funds to restricted – 29 – -29 0Group contributions received/given – – – 183,434 183,434Current tax attributable to Group contributions – – – -48,245 -48,245Change to accounting principles 1 – – – -104,882 -104,882

Profit/loss for the year – – – -103,183 -103,183Other comprehensive income for the year – – -21 – -21Comprehensive income for the year – – -21 -103,183 -103,204

Closing equity 31 December 2011 100 432,286 -24,516 -119,651 288,219

Opening equity 1 January 2011 100 432,286 -24,516 -119,651 288,219

Transfer from unrestricted funds to restricted – 30 – -30 0Group contributions received/given – – – 16,000 16,000Current tax attributable to Group contributions – – – -4,208 -4,208Dividend – – – -135,191 -135,191

Profit/loss for the year – – – -66,728 -66,728Other comprehensive income for the year – – -7,091 45 -7,046Comprehensive income for the year – – -7,091 -66,683 -73,774

Closing equity 31 December 2011 100 432,316 -31,607 -309,763 91,046

Change in translation reserve *

Opening translation reserve 1 January 2011 -22,417Change for the year from the translation of companies -2,099Closing translation reserve 31 December 2011 -24,516

Opening translation reserve 1 January 2012 -24,516Change for the year from the translation of companies -6,053Closing translation reserve 31 December 2012 -30,569

Change in hedging reserveOpening hedging reserve 1 January 2011 -2,078Change for the year 2,078Closing hedging reserve 31 December 2011 0

Opening hedging reserve 1 January 2012 0Change for the year -1,038Closing hedging reserve 31 December 2012 -1,038

* Exchange rate differences when translating financial statements for foreign operations.

The company applies hedge accounting for currency and interest derivatives. See Note 1 for more information.

thE GROup


Consolidated statement of cash flows

SEK thousands note 2012 2011Operating activitiesProfit/loss after financial items in continuing operations -49,150 -25,937Profit/loss after financial items in discontinued operations – -118,492Depreciation/amortisation 51,225 61,703Impairment of assets – 33,670Other items not affecting liquidity 21 41,572 42,117Income tax paid 3,051 2,985Cash flow from operating activities before changes in working capital 46,698 -3,954

Changes in working capitalIncrease (-)/Decrease (+) in stock 22,017 21,017Increase (-)/Decrease (+) in accounts receivable 18,207 -64,143Increase (-)/Decrease (+) in other current receivables 35,270 122,682Increase (+)/Decrease (-) in accounts payable -15,167 -57,469Increase (+)/Decrease (-) in other current liabilities -73,011 -119,597Cash flow from operating activities 34,014 -101,464

investing activitiesAcquisition of intangible and tangible non-current assets 6, 7 -28,711 -43,904Disposal of intangible and tangible non-current assets – –Acquisition of subsidiary/segment, net liquidity impact 21 – –Disposal of subsidiaries 21 – 105,014Investment, financial assets – –Cash flow from investing activities -28,711 61,110Cash flow from operating activities 5,303 -40,354

Financing activitiesShareholder contributions received – –Borrowings – 147,927Amortisation loans -53,546 61,110Dividend paid -135,191 -40,354Group contribution received 183,434 142,310Cash flow from financing activities -5,303 40,354

Change in cash and cash equivalents for the period – –Cash and cash equivalents at beginning of the period – –Cash and cash equivalents at year end 21 – –

thE GROup


parent company income statement

SEK thousands note 2012 2011Operating incomeNet turnover 25 248 1,787total operating income 248 1,787

Operating expensesCost of goods and services sold 2 – –Other external expenses 4 -1 -158Personnel costs 5 -270 -1,771Amortisation 6 – –Depreciation 7 – –Impairment of shares in subsidiaries 10 – -83,673total operating expenses -271 -85,602

Operating result -23 -83,815

Financial income 8 122 5Financial expenses 8 -84,398 -74,251net financial items -84,276 -74,246

profit before tax -84,299 -158,061

Tax 9 22,154 18,278profit/loss for the year -62,145 -139,783

parent company statement of comprehensive income

SEK thousands 2012 2011profit/loss for the year -62,145 -139,783

Other comprehensive incomeChange in hedging reserve for the year -1,038 –Other comprehensive income for the year – 0Comprehensive income for the year -63,183 -139,783

thE pAREnt COMpAny


parent company balance sheet

SEK thousands note 2012 2011ASSEtS

non-current assetsIntangible assets 6 – –Property plant and equipment 7, 20 – –Participations in Group companies 10 935,200 935,200Deferred tax assets 9 293 –Non-current receivable Group companies 146,530 166,077total non-current assets 1,082,023 1,101,277

Current assetsInventories 13 – –Accounts receivable 14, 24 – –Receivables from Group companies 14, 24 302,288 400,073Tax assets 14 – –Prepaid expenses/accrued income 14 – 26Cash and cash equivalents 21 5 65total current assets 302,293 400,164

tOtAl ASSEtS 1,384,316 1,501,441

liAbilitiES AnD EQuity

EquityRestricted equityShare capital 100 100Reserves -1,038 –Non-restricted equityFair value reserve – –Retained earnings 245,570 458,364Profit/loss for the year -62,145 -139,783total equity 182,487 318,681

non-current liabilitiesNon-current interest-bearing liabilities 15, 20, 22, 24 401,800 444,880Shareholder borrowings 2, 15, 22, 24 503,198 448,669Other non-current liabilities, interest-bearing 15 – –Other non-current liabilities, not interest-bearingGroup 24 – 58,550Other 24 12,577 11,246total non-current liabilities 917,575 963,345

Current liabilitiesAdvance payment from customers 17 – –Accounts payable 2, 17, 24 19 26Liabilities to Group companies 17, 24 239,130 219,267Liabilities to credit institutions, interest-bearing 15 45,000 –Other current liabilities 17 21 14Accrued expenses/deferred income 17 84 108total current liabilities 284,254 219,415total liabilities 1,201,829 1,182,760

tOtAl EQuity AnD liAbilitiES 1,384,316 1,501,441

pledged assets and contingent liabilitiesPledged assets 18 251,466 289,986Contingent liabilities 18 – –

thE pAREnt COMpAny


parent company's changes in equity

Restricted equity non-restricted equity

SEK thousands

Share capitalFair value

reservehedging

reserveRetained earnings

profit/loss for the year total equity

Equity

Opening equity 1 January 2011 100 – 0 532,960 -104,904 428,156

Appropriation of profits – – – -104,904 104,904 –Shareholder contributions – – – -104,882 – -104,882Group contributions received – – – 183,434 – 183,434Current tax attributable to Group contributions – – – -48,244 – -48,244

Profit/loss for the year – – – – -139,783 -139,783Other comprehensive income for the year – – – – – –Comprehensive income for the year – – 0 – -139,783 -139,783

Closing equity 31 December 2011 100 – 0 458,364 -139,783 318,681

Opening equity 1 January 2012 100 – 0 458,364 -139,783 318,681

Appropriation of profits – – – -139,783 139,783 0Dividend – – – -135,191 – -135,191Group contributions received – – – 84,368 – 84,368Current tax attributable to Group contributions – – – -22,188 – -22,188

Profit/loss for the year – – – – -62,145 -62,145Other comprehensive income for the year – – -1,038 – – -1,038Comprehensive income for the year – – – – -62,145 -63,183

Closing equity 31 December 2012 100 – -1,038 245,570 -62,145 182,487

The number of shares in the parent company amounts to 100,000 (100,000).The par value in the parent company is 1.

Change in fair value reserveOpening fair value reserve 1 January 2011 –Change for the year –Closing fair value reserve 31 December 2011 –

Opening fair value reserve 1 January 2012 –Change for the year –Closing fair value reserve 31 December 2012 –

Change in hedging reserveOpening hedging reserve 1 January 2011 –Change for the year –Closing hedging reserve 31 December 2011 –

Opening hedging reserve 1 January 2012 –Change for the year -1,038 Closing hedging reserve 31 December 2012 -1,038

thE pAREnt COMpAny


parent company cash flow statement

SEK thousands note 2012 2011Operating activitiesProfit/loss after financial items -84,299 -158,061Amortisation/impairment 10 – 83,673Other items not affecting liquidity 21 54,517 43,462Income tax paid – -105Cash flow from operating activities before changes in working capital -29,782 -31,031

Changes in working capitalIncrease (-)/Decrease (+) in accounts receivable – –Increase (-)/Decrease (+) in other current receivables -1,260 63,975Increase (+)/Decrease (-) in accounts payable -7 -25Increase (+)/Decrease (-) in other current liabilities 19,825 -418Cash flow from operating activities -11,224 32,501

investing activitiesAcquisition of intangible and tangible non-current assets 6, 7 – –Acquisition of subsidiary/area, net liquidity impact 21 – –Cash flow from investing activities – –Cash flow from operating activities -11,224 32,501

Financing activitiesShareholder contributions received – –Borrowings – 100,000Amortisation loans -37,084 -100,000Dividend paid -135,191 -104,882Group contribution paid – –Group contribution received 183,434 71,965Cash flow from financing activities 11,159 -32,917

Change in cash and cash equivalents for the period -65 -416Cash and cash equivalents at beginning of the period 65 481Cash and cash equivalents at year end 21 0 65

thE pAREnt COMpAny


This Annual Report and the Consolidated Financial Statements were adopted by the Board of Directors and the Chief Executive Officer on 2 March 2013, and are proposed for final adoption by the Annual General Meeting on 20 March 2013.

Ratos formed the Euromaint Gruppen AB on 25 April 2007. Euromaint Gruppen AB acquired Euromaint AB on 1 September 2007.

The parent company is a registered limited liability company domiciled in Stockholm. The address for the head office is Svetsarvägen 10, SE-171 41 Solna, Sweden. The parent company in the largest group to which Euromaint Gruppen AB, 556731-5402 is a subsidiary, and in which the Consolidated Financial Statements are drawn up, is Ratos AB, 556008-3585, Stockholm.

The most important accounting principles applied in the preparation of these consolidated financial statements are listed below and have been applied consistently to all periods unless otherwise stated. The Group's accounting principles have also been consistently applied by Group companies.

Statement of compliance with applicable regulationsEuromaint Gruppen's Consolidated Financial Statements have been prepared in accordance with the Swedish Annual Accounts Act and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretation statements from the International Financial Reporting Interpretations Committee (IFRIC), as they both have been adopted by the EU.

The Consolidated Financial Statements are also prepared according to the Swedish Financial Reporting Board's Recommendation RFR 1. (Supplementary Accounting Rules for Groups). The accounting principles relating to the parent company corres-pond to the principles for the Group except as shown below under the heading The Parent Company. The parent company's Financial Statement is prepared in accordance with the Swedish Financial Reporting Board Recommendation RFR 2 (Accounting for legal entities) and the Swedish Annual Accounts Act.

basis of preparation of the statementsThe accounts are based on historical acquisition costs, apart from certain financial instruments. For further information on this point, please consult the section Financial Instruments, below. important estimates and assumptions for accounting purposesThe preparation of statements in accordance with IFRS requires the use of a number of estimates and assumptions about the future; these are made by the company management. The estimates for accounting purposes that result will, by definition, rarely correspond to the actual results.

Estimates and assumptions are reviewed regularly. Changes to estimates are reported in the period in which the change is made if the change only affects this period, or in the period in which the change is made and future periods if the change affects both the current period and future periods.

Uncertainty in estimates Some assumptions about the future and certain estimates and assumptions at the balance sheet date have special significance for the valuation of assets and liabilities in the balance sheet. Discussed below are the areas where the risk of changes in value during the following year is greatest due to the need to change assumptions or estimates. Testing the impairment requirement for goodwillGoodwill arising from business combinations represents the difference between the acquisition cost and the fair value of the acquired identifiable net assets. The impair-ment requirement for goodwill is tested once a year. The recoverable amount (i.e. the higher of value in use and fair value less selling expenses) is normally established based on the value in use, derived using discounted cash flow calculations. This in turn requires the expected future cash flow from the cash-generating unit to be estimated and an appropriate discount rate is established for calculating the cash flow's present value.

Pension obligationsThe value of pension obligations for defined benefit pension plans is based on actuarial calculations using assumptions regarding discount rates, expected returns on plan assets, future salary increases, inflation and demographic conditions.

Obsolescence of stockIn value terms, stock consists mainly of items acquired according to an estimated maintenance plan for different train models. Since these cycles are long-term (5-12 years), there is an uncertainty in the assessment. The company has an obligation to stock items (spare parts) over a long period for individual train models, which have a very long economic and technical life.

Percentage of completion accounting methodWith the percentage of completion accounting method there is uncertainty, as the work runs for several years, in predicting the final financial outcome of a major refurbishment project. Reconciliation is therefore made during the period from the beginning of the project until completion, but because this consumes both time and money, this is only performed a certain number of times during the year.

Provision for warranties for work carried outFor so-called 'availability work', faults in a provided service or a non-functioning

product are corrected during a short period after the service has been provided. The cost of the work or replacement of a non-functioning product is included in the agreed business deal.

For refurbishment work, there is a need for warranties to the customer. These warranties run for two to five years. Since each refurbishment job is a unique part of the company's operations and cannot be compared with any other refurbishment job, the cost for warranties is difficult to assess. The company tries to estimate the warranty costs that may arise, and make provisions for these, but some uncertainty remains over the final outcome.

Changed accounting principlesChanges in IFRS, with application from 2012, have not had a significant effect on the Consolidated Financial Statements.

new iFRS that have not yet been appliedA number of new and changed IFRS only come into force in the next financial year and have not been applied in advance when preparing these financial statements. – IFRS 10. New standard for Consolidated Financial Statements. The new standard

does not contain any changes compared to the currently valid IAS 27 regarding the consolidation of acquisitions and disposals. IFRS 10 contains a model that is to be used when determining whether or not there is control for all investments that a company holds.

– IFRS 12 Disclosure of interests in other entities. The disclosure requirements concerning subsidiaries etc. have been changed.

– IFRS 13 Fair value measurement. A new uniform standard for measuring fair value as well as improved disclosure requirements.

– Changes in IAS 19 Employee benefits: "The corridor method" for recognition of actuarial gains and losses on pension provisions will no longer apply from 2013. This means the Group will reverse the difference (SEK 11,695) directly in equity in January 2013.

– Changes in IAS 1 Presentation of Financial Statements, Classification of line items that will be presented as part of other comprehensive income.

– IAS 28 Investments in associates and joint ventures. The change concerns how recognition is to be done when changes in investments change and significant or joint control ceases or not.

– UFR 9 Recognition of Yield Tax. Yield tax levied on provisions on the balance sheet are recognised as an expense in the income statement.

The company has decided that the new standards will come into effect from 2013.

The change in IFRS with application from 2013 which is deemed to have the greatest effect on the Group's accounting is the change to IAS 19.

Consolidated financial statements Euromaint Gruppen's income statement and balance sheet comprise all the companies over which the parent company directly or indirectly exercises a controlling influence. A controlling influence means the right to directly or indirectly shape a company's financial and operating strategies in order to obtain economic benefits. A controlling influence arises when a shareholding totals more than half of the voting rights. When assessing if there is significant influence, potential voting shares that can be used or converted without delay are taken into consideration.

Intra-group transactions and balance sheet items, as well as profit on transactions between Group companies are eliminated. Unrealised losses are also eliminated, unless the transaction provides evidence that there is an impairment requirement for the transferred asset.

Consolidation principles and business combinationsSubsidiaries are companies under the control of Euromaint Gruppen AB. Controlling influence means the right to directly or indirectly shape a company's financial and operating strategies in order to obtain economic benefits. When assessing if there is a controlling influence, potential voting shares that can be used or converted without delay are taken into consideration.

Acquisitions 1 January 2010 or laterSubsidiaries are reported according to the acquisition method. This method means that the acquisition of a subsidiary is considered a transaction by means of which the Group indirectly acquires the subsidiary's assets and takes over its liabilities. The acquisition analysis establishes the fair value on the acquisition date of the acquired identifiable assets and assumed liabilities, as well as any holding without a controlling influence. Transaction fees, with the exception of transaction fees related to the issue of equity instruments or debt instruments, arising are recognised directly in the profit/loss for the year.

When combining businesses where the transferred compensation, possibly a holding without a controlling influence and the fair value of a previously owned share (in the event of phased acquisition) exceeds the fair value of acquired assets and assumed liabilities which are recognised separately, the difference is recognised as goodwill. When the difference is negative, a low price acquisitions, this is recognised directly in the profit/loss for the year.

Transferred compensation in conjunction with the acquisition does not include payments related to the regulation of previous business relationships. This type of regulation is recognised in earnings.

The company's acquisitions have not included any conditional purchase sums.

note 1. Accounting and valuation principles

nOtES


Acquisitions made between 1 January 2004 and 31 December 2009Acquisitions made between 1 January 2004 and 31 December 2009, where the acqui-sition cost exceeds the fair value of acquired assets and assumed liabilities, as well as contingent liabilities reported separately, the difference is recognised as goodwill. When the difference is negative, this is recognised directly in the profit/loss for the year. Transaction fees, with the exception of transaction fees related to the issue of equity instruments or debt instruments, arising have been included in the acquisition cost. Foreign currency – translationForeign operations' financial statementsReceivables and liabilities in foreign operations, including goodwill and other consolidated surplus and deficit values, are translated from the foreign operations' functional currency to the Group's reporting currency, the Swedish krona, at the rate on the balance sheet date.

When preparing the consolidated accounts, all items in the income statement for foreign subsidiaries are recalculated to Swedish krona using the average exchange rates, which constitute an approximation of the exchange rates in force at the time of each transaction during the year. The changes in the Group's equity arising from different exchange rates on the balance sheet date, compared with the rate on the previous balance sheet date, are recognised in other comprehensive income and accu-mulate as a separate component under equity, designated translation reserve. When disposing of foreign activities, the accumulated translation differences attributable to the sold foreign activities are reclassified from equity to profit/loss for the year as a reclassification adjustment at the time when the profit or loss from the sale is reported.

Transactions in foreign currencyAll subsidiaries use the local currency as their functional currency. Transactions are reported at the rate on the transaction date, which is then translated. Monetary assets and liabilities in foreign currency are recalculated to the functional currency at the exchange rate in force on the balance sheet date. Exchange rate differences that arise from these translations are reported in the profit/loss for the year. Non-monetary assets and liabilities reported at historical acquisition cost are translated at the exchange rate at the time of the transaction. Non-monetary assets and liabilities reported at fair value are translated into the functional currency at the rate in force at the time of the valuation of fair value. The functional currency of the parent company is Swedish krona which also constitutes the statement currency for the parent company and Group.

Net investment in a foreign operation Monetary non-current receivables to a foreign operation for which no regulation is planned, or which will in all probability not take place within the foreseeable future, are in practice part of Euromaint's net investment in the foreign operation. An exchange rate difference arising in the monetary non-current receivable is recognised in other comprehensive incomes and accumulated in a separate component in equity, called translation reserve. When disposing of a foreign operation the accumulated exchange rate differences related to monetary non-current receivables are included in the accumulated translation differences reclassified from the translation reserve in equity to the net profit/loss for the year.

property, plant and equipmentOwned assetsTangible non-current assets are included at cost of acquisition, less accumulated depreciation and accumulated impairments. The cost of acquisition includes the purchase price and costs directly attributable to the asset, such as the cost for getting it in place and in such a condition that it can be used in accordance with the aim of the acquisition.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is likely that future economic benefits associated with the asset will flow to the Group and the cost of the item can be measured reliably. All other types of repairs and maintenance are reported as expenses in the income statement during the period in which they arise.

Leased assetsAssets leased under finance lease contracts are recognised as non-current assets in the statement of financial position and are initially measured at the lower of the leased item's fair value and the present value of the minimum lease payments at the start of the contract. The obligation to pay future lease payments is recognised as non-current and current liabilities. The leased assets are depreciated over the useful life of the asset, or if shorter over the agreed leasing period, while lease payments are reported as interest and the amortisation of debt.

The assets that are leased according to operational leasing are not recognised as assets in the report of financial position. Operating lease contracts do not give rise to a liability either.

Depreciation principlesTo allocate their acquisition cost down to the estimated residual value, there is straight-line depreciation according to plan of tangible non-current assets over the estimated useful life, according to the following percentages per year:

Category Depreciation year

Machinery and equipment 5-10

Computers and terminals 3

Improvements of leased property 5-10

The assets' residual values and useful lives are reviewed on each balance sheet date and are adjusted if necessary. An asset's carrying amount is impaired immediately to its recovery value (the higher of net realisable value and value in use) if the asset's carrying amount exceeds its estimated recovery value.

Profits and losses following disposals are determined by comparing the revenue from sales and the carrying amount, and the result is reported in the income statement.

intangible assetsGoodwillGoodwill represents the amount by which the acquisition cost exceeds the fair value of the Group's share of the acquired subsidiary's identifiable net assets on the date of acquisition minus any impairments. Goodwill is recognised as an intangible asset. Profit or loss on the divestment of a unit includes the remaining carrying amount of the goodwill relating to the divested unit.

Goodwill is allocated to cash generating units for the examination of any impairment requirement. The impairment requirement for goodwill is tested using the following procedure. The goodwill value as determined on the date of acquisition is allocated to cash-generating units, or groups of cash-generating units, which are expected to bring benefits to the company through synergies. Assets and liabilities that already exist in the Group at the time of acquisition can also be attributed to these cash-generating units. Any cash flow of this type that to which goodwill is allocated corresponds to the lowest level within the Group at which goodwill is monitored in the company's management and is not a part of the Group greater than one segment. An impairment requirement exists when the recoverable amount for a cash-generating unit (or groups of cash-generating units) is less than the carrying amount. An impairment is then recorded in the income statement.

Customer and market-relatedAcquired intangible assets, such as brands, customer-related assets and other similar items, have previously been capitalised and recognised at acquisition cost less accumulated amortisation and impairments. In 2011, the Group disposed of subsidiaries whereupon customer-related assets no longer exist in the Group's "Statement of financial position".

TechnologyResearch projects or patent rights acquired in a business combination are capitalised and reported at the acquisition cost less amortisation and impairments.

Subsequent expenses for capitalised intangible assets are reported as an asset in the statement of financial position. Only then do they increase the future economic benefits for the specific asset to which they relate. All other expenses are recorded as a cost when they occur.

Depreciation principlesAmortisation is reported in the profit/loss for the year over the estimated useful life of the intangible asset, unless such useful lives cannot be determined. The useful lives are re-examined at least once a year. Goodwill and other intangible assets with an uncertain useful life or which are not yet ready for use are tested for impair-ment requirements annually, and also as soon as indications arise that suggest that the asset in question has reduced in value. Intangible assets with definable useful lives are amortised from the date they are available for use. The calculated useful lives are:

Category Depreciation year

Technology 3

impairment of assets that are not financial Tangible and intangible assetsAssets that have an indefinite useful life are not depreciated, but are tested annually for any impairment requirement. The assets which are depreciated are assessed in terms of any impairment requirement whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If it is not possible to significantly determine independent cash flows for an individual asset, and its fair value minus selling expenses cannot be used, the assets are grouped to the lowest level when testing impairment requirements when it is possible to identify significantly independent cash flows – a so-called "cash-generating unit".

An impairment is made according to the amount by which the asset's carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less selling expenses or value in use. When calculating the value in use, future cash flows are discounted by a discount factor that takes into account the risk-free interest rate associated with the specific asset. An impairment is recognised as a cost in the profit/loss for the year. Once impairment requirements have been identified for a cash-generating unit, the impairment sum is primarily assigned to goodwill. The other assets included in the unit are then proportionally impaired.

An asset, except goodwill, that has previously been impaired is examined on each balance sheet date to determine whether a reversal is required.

Financial instrumentsFinancial instruments recognised in the statement of financial position include, on the asset side, cash and cash equivalents, trade receivables, derivatives and other receivables. On the liability side are accounts payable, loans, derivatives and other liabilities.

A financial asset or financial liability is recognised in the statement of financial position once the company has become a party to the instrument's contractual terms. Trade receivables are recognised in the statement of financial position when

note 1. Accounting and valuation principles (cont.)

nOtES


Any realised profit is recognised in the income statement as a financial item. If the synthetic options mature without value, the reported liability is recognised as income.

BorrowingLoans are reported initially at the loan sum including transaction costs, and are then reported at amortised cost applying the effective interest rate method. Borrowings are classified as current liabilities if payment of the liability is to be made within 12 months following the balance sheet date.

Accounts payableAccounts payable are initially reported at the acquisition cost equivalent to fair value with additions for transaction costs and are subsequently measured at amortised cost using the effective interest rate method.

Derivative instrumentsThe Group has used derivative instruments in the form of futures to hedge parts of its exposure to currency risks in the payment flows, as well as interest rate swaps to hedge parts of borrowings with variable interest rates. Hedge accounting was applied with effect from 1 January 2008. For 2012, there are only interest rate swaps. With effect from 2011, the Group successively discontinued the use of derivatives and there are now no unrealised derivatives remaining. Derivative contracts and interest rate swaps are recognised as follows. The effective portion of the hedging instrument's change in value is recognised in other comprehensive income and the accumulated changes in value in a specific component of equity, while the ineffective part is recognised in profit/loss for the year. (The last derivative contract was realised in December 2011). In order to meet the requirements for hedge accounting under IAS 39, there needs to be a clear link to the hedged item. It also demands that the hedge effectively protects the hedged item, that the hedge documentation be prepared, and that efficiency can be shown to be sufficiently high through efficiency measurement. Accumulated changes in value in equity are reversed in the profit/loss for the year in the periods when the hedged item affects the result, for example, when the forecast external sale has taken place. When a hedging instrument expires, is sold or when the hedge no longer meets the conditions for hedge accounting, the accumulated changes in value in equity remain and are reversed to the profit/loss for the year. If a forecast transaction is no longer expected to take place, the accumulated change in value that has been recognised in equity is immediately transferred to profit/loss for the year. Derivatives with positive values are reported as assets and derivatives with negative values as liabilities.

Cash and cash equivalentsCash and cash equivalents include cash and bank deposits.

Associated companiesAssociated companies are companies over which the Group has a significant, but not controlling, influence on operational and financial management, ordinarily through a shareholding of between 20 and 50 % of the voting rights. From the date that the significant influence is obtained the shares in the associated company are reported according to the equity method in the consolidated accounts. The equity method means that the value reported in the Group of shares in the associated companies correspond to the Group's share in the associated companies equity as well as Group goodwill and other residual values of Group surplus and deficit values. In the consolidated profit/loss for the year, the Group's share in the associated company's profit/loss attributable to the owners of the parent company adjusted for any depreciation, impairments and reversals of acquired surpluses and deficit values, are recognised in "Income from participations in associated companies". These equity participations, reduced by dividends received from associated companies, constitute the main change of the reported value of equity in associated companies.

Any difference on the acquisition date between the acquisition cost for the holding and the owner company's share of the net fair value of the associated company's identifiable assets and liabilities, is reported according to the same principles as for the acquisition of subsidiaries.

Transaction fees, with the exception of transaction fees related to the issue of equity instruments or debt instruments, arising have been included in the acquisition cost. When the Group's share of reported losses in the associated company exceeds the reported value of the shares in the Group, the value of the shares is reduced to zero. Deduction for losses also takes place against long-term financial intermediaries without collateral, which financially constitute part of the owner company's net investment in the associated company.

Continuing losses are not recognised unless the Group provided guarantees to cover losses arising in the associate.

inventoriesStock is valued at the acquisition cost or the net realisable value, whichever is lowest. The acquisition cost for stock is calculated using the first-in, first-out method and includes expenses that have been incurred from acquiring stock assets and transporting them to their current location and getting them into the appropriate condition. For manufactured goods and work in progress, the acquisition cost includes a reasonable proportion of indirect costs based on normal capacity.

The net realisable value is the estimated sale price in operating activities, once the costs of completion and sale have been deducted.

Contingent liabilitiesA contingent liability is recognised when there is a possible commitment deriving from

the invoice has been sent. Liabilities are entered when the counterparty has delivered and a contractual obligation to pay exists, even if an invoice has not yet been received. Accounts payable are entered when an invoice has been received.

A financial asset is derecognised from the statement of financial position when the rights in the contract have been realised, cancelled or the company loses control over it. The same applies to part of a financial asset. A financial liability is derecognised from the statement of financial position when the obligation in the contract has been fulfilled or is otherwise satisfied. The same applies to part of a financial liability.

Acquisitions and divestments of financial assets are reported on the trade date, which is the date on which the company commits to acquire or sell the asset. Financial instruments and hedge accounting Forward agreements used to hedge currency changes for receivables and liabilities in a foreign currency are valued at the spot price on the day when the currency future is taken up for assessment of the underlying receivable or liability. The difference between the forward rate and the day rate when the agreement is entered into (the arbitrage premium) is amortised over the term of the forward agreement. Amortised arbitrage premiums are reported as interest rate income or an interest rate expense when the future is longer than three months.

Classification of financial instrumentsThe Group classifies its financial instruments into the following categories: financial assets or financial liabilities held for trading and measured at fair value via the income statement, trade receivables, liabilities measured at amortised cost and derivatives used for hedging purposes. The classification depends on the purpose for which the instrument was acquired. The classification is determined at initial recognition and is reassessed at each reporting date.

Calculation of fair valueWhen the market is not active for a particular financial asset, fair values are calculated through valuation techniques, whereby the Group makes assumptions based on the market conditions prevailing at the balance sheet date. Market rates of interest form the basis for calculating the fair value of long-term loans. For other financial instruments where the market value is not specified, fair value is considered to correspond with the carrying amount.

Financial assets measured at fair value via the income statementThis category includes financial assets held for trading and those which, from the time of investment, are attributable to the category measured at fair value via the income statement. The Group's assets in this category consist of derivative instruments that are not identified as hedges. Assets in this category are classified as current assets if they are held for trading or are expected to be realised within 12 months from the balance sheet date. Financial assets measured at fair value via the income statement are valued at their fair value initially, which means that transaction costs burden the income for the period, and following the acquisition date. Realised and unrealised gains and losses arising from changes in fair value are included in the income statement as financial items in the period in which they occur.

Accounts receivableTrade receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables are recognised at the acquisition cost less any provision for impairment. A provision for depreciation of accounts receivable is established when there is objective evidence that the Group will not be able to receive the amounts due under the receivables' original terms. The size of the provision is the difference between the asset's carrying amount and the value of estimated future cash flows. Depreciation is reported in the income statement.

Trade receivables are deemed uncertain when payment is not seen as likely. The impairment requirements for accounts receivable are determined based on historic experience of customer losses for similar accounts. Accounts receivable with impair-ment requirements are reported at the present value of expected future cash flows. However, accounts with a short term are not discounted.

Impairments of trade receivables recognised at amortised cost are reversed if the previous reasons for impairment are no longer valid and full payment from the customer is expected to be received.

Financial liabilities valued at fair value via the income statementThis category includes derivatives with negative fair value that are not used for hedge accounting, and financial liabilities that are held for trading. The liabilities are valued continuously at fair value, which means that transaction costs burden the income for the period, and changes in value are reported in the income statement as a financial item.

Synthetic optionsSynthetic option programmes with market premiums are recognised and measured in accordance with IAS 39. Received premiums are recognised as financial liabilities. When a valuation of the options at fair value through an option pricing model corresponds to the premium the company has received, this means that there is no initial cost to the company. The liability is revalued continuously at fair value by applying an option pricing model, taking the existing conditions into account. Changes in value over the option's term are reported as a financial item, as well as other income and expenses in respect of financial assets and liabilities. If a synthetic option is exercised by the holder, the financial liability, as previously revalued at fair value, is settled.


nOtES


events that have occurred and whose occurrence is only confirmed by one or more uncertain future events or when there is a commitment that has not been recognised as a liability or provision due to it not being credible that an outflow of resources will be required.

ClassificationThe non-current assets, non-current liabilities and provisions consist essentially of amounts that are expected to be recovered or paid after more than 12 months following the balance sheet date. Current assets and current liabilities consist essentially of amounts that are expected to be recovered or paid within 12 months following the balance sheet date.

income taxesIncome taxes are included in the consolidated financial statements with both current and deferred tax. Group companies are subject to taxation in accordance with the existing legislation in each country. A current tax liability or asset is reported as the tax estimated to be paid or received for the current or previous years.

Deferred tax is reported on all temporary differences arising from the difference between the tax value of assets and liabilities and their carrying amounts in the consoli-dated financial statements. Deferred tax is calculated by applying the tax rates and tax laws that have been enacted or announced at the balance sheet date and are expected to apply when the deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are reported for deductible temporary differences and unused tax loss carry-forwards to the extent it is likely that future taxable profits will be available against which the temporary differences or unused loss carry-forwards may be utilised.

Remuneration to employeesPension obligationsGroup companies have various pension plans. The pension plans are financed through the payment of insurance premiums or through provisions in the balance sheet. The Group has both defined benefit and defined contribution pension plans.

A defined contribution pension plan is a pension plan for which the Group does not have any further payment obligations once the contributions are fully paid. Defined contribution pension plans in the Group are PA-03, Option ITP-S, and ITP in Alecta which is reported as a defined contribution plan due to lack of the information required to report the plan as a defined benefit plan. The contributions are reported as personnel costs. Prepaid contributions are reported as an asset to the extent that a cash refund or reduction of future payments can be credited by the Group.

A defined benefit pension plan means that the employee is guaranteed a pension equivalent to a certain percentage of the final salary. The liability reported in the balance sheet for defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets.

The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using the interest rate on government bonds with maturities comparable to the current pension liability. Actuarial gains and losses that arise from experience-based adjustments and changes in actuarial assumptions in excess of the greater of ten per cent of the value of plan assets and ten per cent of the defined benefit obligation, are taken up as costs or income over the employees' estimated average remaining service (the ten per cent corridor). Costs relating to past service are reported directly in the income statement, unless the changes in the pension plan are conditional on the employees remaining in service for a specified period (the vesting period). In such cases costs relating to past service can be allocated on a straight-line basis over the vesting period.

On Euromaint Gruppen AB's acquisition of Euromaint AB, assets and liabilities that are attributable to post-employment benefits were recognised at the current value of obligations and plan assets, as per IAS 19 paragraph 108. This means that actuarial gains and losses that were incurred before the acquisition have been recognised in the statement of financial position, including those that may be attributed to exceeding the "ten per cent corridor".

Short-term benefits Short-term employee benefits are calculated without discounting, and are reported as a cost once the related services have been received. A provision is reported for the expected cost of profit-sharing and bonus payments when the Group has a valid legal or informal obligation to make such payments as a result of services received from employees and if the obligation can be estimated reliably.

Termination benefitsTermination benefits are payable for an employee's employment terminated before the normal retirement date or when an employee accepts voluntary redundancy in exchange for such compensation. The Group reports the liability or cost when it is demonstrably committed either to terminating the employee according to a detailed formal plan without the possibility of revocation, or to providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits that are due after 12 months from the balance sheet date or longer are discounted to the present value.

provisionsProvisions are reported when the Group has an existing legal or informal obligation as a result of past events; it is more likely that an outflow of resources is required to settle the obligation than to not do so and the amount can be estimated reliably. No provisions are made for future operating losses. If there are a number of similar obligations, the likelihood of there needing to be an outflow of resources to settle this

entire group of obligations is assessed. Where the effect of when payment is made is important, the provisions are calculated by discounting the expected future cash flow at an interest rate before tax that reflects the current market estimates of the time value of money and, where applicable, the risks associated with the liability. The provisions for warranties, restructuring and pensions are reported under provisions.

Provision for warranties starts to be calculated when a service is completed or the goods have been released to the customer. In order to estimate the amounts, historical data related to repairs and exchanges are generally used.

Revenue recognitionRevenue is reported less VAT, any discounts and similar revenue reductions. Net turnover includes mainly sales of services within maintenance and the refurbishment of rolling stock.

For larger projects, contract revenue is recognised in proportion to the assignment's completion rate, which comprises accrued contract costs compared to forecast contract costs. This accounting is based on the view that the performance is fulfilled as the work is carried out and means that profits are gradually reported based on each assignment's completion rate when the assignment's final outcome can be reliably estimated.

For availability deals, known as kilometre contracts, revenue recognition is based on the number of kilometres that the rolling stock has travelled.

An anticipated loss for an assignment is charged in full immediately to the profit/loss for the period.

Financial income and expensesFinancial income relates to the positive exchange rate differences, interest income on financial assets, pension assets and bank deposits, profit from the change in value of financial assets valued at fair value via the income statement and any such profit from hedging instruments reported in income. Financial expenses are costs related to loans, pension liabilities, current bank charges, negative exchange rate differences, loss from the change in value of financial assets valued at fair value via the income statement, impairment of financial assets, and any such losses from hedging instruments reported in the profit/loss for the year.

leasesOperating leasesLeases in which a substantial part of the risks and benefits of ownership are retained by the lessor are classified as operating leases. Payments that are made during the lease period are written-off in the income statement on a straight-line basis over the lease period.

Finance leasesFinance leases involve the financial risks and benefits associated with ownership largely being transferred to the lessee. Where this is not the case, it is a question of operating leases. Minimum lease payments are allocated between interest expense and amortisation of outstanding liabilities. The interest charges may be allocated over the lease period so that each accounting period is charged with an amount equal to a fixed interest rate for the liability reported in each accounting period. Variable charges are written-off in the periods they are incurred.

Cash flow statementThe indirect method is applied when reporting cash flow from operating activities. Related party disclosuresRelated parties refers to the companies where Euromaint or parties related to Euromaint can exercise control or a significant influence in terms of operational and financial decisions. The circle of related parties also includes the companies and individuals who have an opportunity to exercise control or a significant influence over Euromaint Gruppen's financial and operational decisions. Related party transactions are reported in Note 2.

Related individuals are defined as the Chairman and Members of the Board, the Chief Executive Officer and other senior executives as well as close relatives of these people. Remuneration to the Board of Directors and the Chief Executive Officer is presented in Note 5.

Discontinued operationsWhen the Group intends to discontinue an operation that represents either a separate major line of business or a geographical area of operations, this is recognised as a discontinued operation in accordance with IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations. Profit or loss after tax in the discontinued operation is recognised as a single amount in the income statement, separate from the statement of other comprehensive income and the statement for the comparative period, in order to present the discontinued operation separately from the remaining operations. The layout of the statement of financial position for the current and previous year has not been amended, in accordance with applicable regulations, in the same way.

Earnings per shareEarnings per share is calculated using the profit/loss for the year for the Group attributable to the parent company's owners and on the weighted average number of shares outstanding during the year. When calculating the diluted earnings per share, the profit/loss and the average number of shares are adjusted to take account of the effects of diluting potential ordinary shares. During the year there has been no dilution of potential ordinary shares.


nOtES


for fixed interest and the difference is reported as an interest rate expense or interest rate income. The hedging is effective if the financial significance of the hedge and the liability is the same as if the liability had instead been taken up at a fixed market rate when the hedging relationship commenced. Any premiums paid for the swap agree-ment are amortised as interest over the term of the agreement.

Group contributionsWith effect from 2011, Group contributions received are recognised as dividends and Group contributions issued as investments in shares in subsidiaries. Group contributions were previously recognised directly in equity in accordance with UFR 2 Group Contributions and Shareholders' Contributions.

the parent CompanyThe parent company's Annual Report is prepared in accordance with the Swedish Financial Reporting Board Recommendation RFR 2 (Accounting for legal entities) and the Swedish Annual Accounts Act.

Differences between the parent company and the Group's accounting principlesDue to the link between accounting and taxation, the rules on financial instruments and hedge accounting in IAS 39 are not applied to the parent company as a legal entity. In the parent company, financial non-current assets are valued at acquisition cost minus any impairment and financial current assets according to the principle of lowest value.

Interest rate swaps that effectively hedge cash flow risk in interest rate payments for liabilities are valued at the net of accrued claim for variable interest and accrued liability

note 2. transactions with related parties

SEK thousandsthe Group

2012the Group

2011the parent Company


2011

Sales of goods and services

DIAB – 10 – –

purchase of goods and services

Camfil – 23 – –

Lindab – 11 – –

Financial expenses

EMaint (Ratos) 54,529 41,542 54,529 41,542

Receivables from related parties

Ratos – – – –

Inwido – 116,834 – 116,834

Spin International 16,000 66,600 16,000 66,600

liabilities to related parties

GS-Hydro – – – –

Lindab – 14 – –

EMaint (Ratos) 503,198 448,669 503,198 448,669

the following table provides details of the transactions with related parties.

Revenue Expenses

DIAB Services

Camfil Material purchase

Lindab Material purchase

EMaint (Ratos) Interest expenses

Companies in Note 2 are companies within the Ratos Group. Information on remuneration paid to senior executives can be found in Note 5.

note 3 Other operating income and expenses


2012the Group

2011

Other operating income

Profit on the sale of non-current assets 302 3,841

Exchange gains on receivables/liabilities of an operating nature 3,382 4,564

Rental income 0 415

Miscellaneous 30,561 31,906

total 34,245 40,726

Other operating expenses

Loss on the sale of non-current assets -879 -2,728

Exchange losses of an operating nature 0 -9,603

Miscellaneous – –

total -879 -12,331

The parent company has no figures to report for 2012 and 2011.


nOtES


note 4. Auditors' fees


2012the Group



2011

KpMG

Auditing assignments 1,626 3,242 – –

Auditing assignments other – 278 – –

Tax assignments 256 148 – –

Other assignments 264 84 – –

total 2,146 3,752 – –

Auditing assignments refer to the review of the annual report and accounting as well as the administration by the Board and the CEO, other duties which are incumbent on the company's auditors to perform as well as advice and other assistance as a result of observations made during the review or the implementation of such other duties.

Everything else falls under other assignments. The parent company's audit fees for 2012 and 2011 were paid by the subsidiary Euromaint AB.

note 5. Average number of employees and employee costs


2012the Group



2011

the average number of employees broken down by gender is

Sweden

Female 134 156 – –

Male 1,301 1,685 – 1

total 1,435 1,841 – 1

Germany

Female 94 90 – –

Male 882 798 – –

total 976 888 – –

Rest of Europe

Female 2 2 – –

Male 24 30 – –

total 26 32 – –

Group total

Female 230 248 – –

Male 2,207 2,513 – –

total 2,437 2,761 – –

board members

Female 3 2 – –

Male 12 23 3 3

total 15 25 3 3

the Chief Executive Officer and other senior executives

Female 4 3 – –

Male 6 10 – 1

total 10 13 – 1

nOtES


note 5. Average number of employees and employee costs (cont.)


2012the Group



2011

personnel costs

Sweden

Salaries and other remuneration

The Board and CEOs 4,253 5,718 – 682

Including bonuses and comparable remuneration (750) (800) (–) (–)

Other employees 511,192 658,476 154 365

total salaries and other remuneration 515,445 664,194 154 1,047

Payroll overheads 214,755 282,347 111 704

Of which pension expenses (47,767) (63,925) (59) (299)

Other countries

Salaries and other remuneration

The Board and CEOs – – – –

Including bonuses and comparable remuneration (–) (–) (–) (–)

Other employees 266,262 256,324 – –

total salaries and other remuneration 266,262 256,324 – –

Payroll overheads 54,274 52,852 – –

Of which pension expenses (–) (–) (–) (–)

Remuneration and other benefits during the periodThe Chairman of Euromaint Gruppen AB received a fee of SEK 433 thousand (517) in 2012, with other Board Members receiving SEK 42 thousand (316). If employed by Ratos, no fee applies. During 2011, a new Chief Executive Office of Euromaint Gruppen AB was appointed. With effect from September 2011, he is paid a salary by Euromaint Rail AB. During the period, the CEO of Euromaint Gruppen AB received a total salary of SEK – (682). The CEO's retirement age is 65. The CEO has a defined contribution pension promise of 30 % of monthly pensionable remuneration. The notice period is twelve months for notice from the company's side and six months for notice from the CEO's side and during this time, salary is paid with full adjustment against other income. The previous CEO of Euromaint AB was hired as a consultant up to the end of April 2011 and invoiced Euromaint – SEK (1,340) in fees and – SEK (26) in travel expenses. These costs are reported in the item ”Other external expenses”.

Some employees in the Euromaint Group have signed synthetic shares and options. However, these are not linked to each employee's employment.Benefits to management groups and employees in similar positions, in accordance with ÅRL, are recognised as benefits to other employees.

nOtES


Recovery valueThe calculated recovery value is made up of the value in use

The value in use is calculated as the present value of future calculated cash flows generated by the asset during the estimated useful life. The assessment of future cash flows is based on realistic and verifiable assumptions that constitute the best estimates of the financial circumstances that are expected for the useful life. For example, personnel cost increases and other operating costs are based on anticipated inflation, which can be compensated through price increases in current contracts or indexing in fixed price contract. Exchange rate forecasts are based on the current noted exchange rate taking account of existing currency hedges.

The assessment of future cash flows is based on the latest budgets/forecasts and nor-mally covers a three year period. For calculations after this period the estimates of future cash flows are based on the assumption of a steady rate of growth deemed realistic for the cash-generating unit. For the 2012 calculation, a growth rate of 3% has been used based on market positions, plans for the future and growth in the market for each unit.

Estimates of future cash flows do not include future payments attributable to a future restructuring that the ownership is not obliged to implement.

As soon as the ownership is obliged to implement the restructuring, future cash flows then include savings and other benefits, as well as payments out that the restructuring is expected to give rise to.

Nor do assessed future cash flows include receipts and payments from financing activities. On the other hand, tax receipts and payments are included. When valuing a company, it is normal to include taxes. The calculated value in use should be compared with the carrying amount of ownership, which includes both tax assets and liabilities. In

order to make the valuation comparable with the carrying amount, the Group therefore includes receipts and payments in the estimated future cash flows instead of reducing the group value by tax liabilities and receivables.

The company has chosen a discount rate after tax, as estimated future cash flows also include tax. The discount factor reflects market assessments of the time value of money and the specific risks associated with the asset. The discount factor does not reflect any such risks taken into account when future cash flows are estimated. As a starting point when calculating the discount rate, the company's weighted average capital cost, its marginal borrowing rate and other market borrowing rates independent of the company's capital structure are used. For the 2012 calculations, the discount rate after tax has been calculated at 7.08%

the impairment testing of cash-generating units containing goodwillThe following cash-generating units have substantial reported goodwill values in relation to the total reported amount of goodwill in the Group:

SEK million 2012 2011

Rail Sweden 662 662

Rail Germany 48 50

total 710 712

The impairment tests carried out by the company management, which are also presented to the Board of Directors, have not resulted in impairment of the carrying amounts in the remaining segments in 2012.

note 6. non-current assets

2012 2011

SEK thousands GoodwillCustomer relations technology total Goodwill

Customer relations technology total

the Group

Opening accumulated acquisition costs 711,794 – 21,593 733,387 769,503 15,000 32,787 817,290

Investments during the year – – 5,541 5,541 – – 3,308 3,308

Correction – – -991 * -991 * – – -6,657 * -6,657 *

Acquisitions of subsidiaries – – – – – – – –

Sales of subsidiaries – – – – -57,455 -15,000 -7,603 -80,058

Currency adjustment -1,833 – -217 -2,050 -254 – -242 -496

Closing accumulated acquisition costs 709,961 – 25,926 735,887 711,794 – 21,593 733,387

Opening accumulated amortisation – – -12,537 -12,537 – -10,312 -19,024 -29,336

Correction – – 991 * 991 * – – 6,657 * 6,657 *

Acquisitions of subsidiaries – – – – – – – –

Sales of subsidiaries – – – – 33,670 11,875 5,649 51,194

Amortisation for the year – – -6,967 -6,967 -33,670 -1,563 -5,949 -41,182

Exchange rate difference – – 119 119 – – 130 130

Closing accumulated depreciation – – -18,394 -18,394 – – -12,537 -12,537

net book value 709,961 – 7,532 717,493 711,794 – 9,056 720,850

The goodwill that is recognised is attributable to Euromaint AB and subsidiary. All intangible assets are acquired. For information with respect to amortisation, see Note 1. Goodwill with an indefinite useful life is attributed to separate subsidiaries during the impairment test, as these constitute cash-generating units. The parent company has no immaterial non-current assets, for this reason this division is not reported.

* Correction refers to incorrect opening balances from previous years.

nOtES


note 7. property, plant and equipment

2012

SEK thousandsbuildings and land

improvements to leasehold

plant and machinery

Equipment, tools, fixtures

and fittings Construction in

progress total

the Group

Opening acquisition costs 5,900 50,210 169,726 284,467 26,609 536,912

Correction – – -5,906 * 5,906 * – –

Purchasing 1,301 753 5,320 22,669 -2,122 27,921

Sales/disposals -431 -1,356 -2,530 -6,158 -1,085 -11,560

Currency adjustment -213 -115 -1,391 -1,248 -166 -3,133

Closing accumulated acquisition costs 6,557 49,492 165,219 305,636 23,236 550,140

Opening depreciation -1,027 -27,742 -113,816 -208,957 – -351,542

Correction – – 4,304 -4,304 – –

Depreciation for the period -618 -4,582 -10,329 -28,729 – -44,258

Sales/disposals 42 789 2,375 5,901 – 9,107

Currency adjustment – 60 479 472 – 1,011

Closing accumulated depreciation -1,603 -31,475 -116,987 -235,617 – -385,682

Closing planned residual value 2012 4,954 18,017 48,232 70,019 23,236 164,458

2011

SEK thousandsbuildings and land

improvements to leasehold

plant and machinery

Equipment, tools, fixtures

and fittingsConstruction in

progress total

the Group

Opening acquisition costs – 53,987 178,692 285,534 16,183 534,396

Correction 4,760 -4,760 42 -42 – –

Purchasing 1,172 1,279 8,935 25,325 13,053 49,764

Sales of subsidiaries – – -10,454 -19,805 – -30,259

Sales/disposals – -325 -6,813 -6,532 -2,620 -16,290

Currency adjustment -32 29 -676 -13 -7 -699

Closing accumulated acquisition costs 5,900 50,210 169,726 284,467 26,609 536,912

Opening depreciation – -23,436 -112,507 -186,251 – -322,194

Correction -495 495 53 -53 – –

Depreciation for the period -536 -4,810 -12,258 -36,587 – -54,191

Sales of subsidiaries – – 6,083 9,584 – 15,667

Sales/disposals – – 4,809 4,680 – 9,489

Currency adjustment 4 9 4 -330 – -313

Closing accumulated depreciation -1,027 -27,742 -113,816 -208,957 – -351,542

Closing planned residual value 2011 4,873 22,468 55,910 75,510 26,609 185,370

* Correction refers to reclassification of non-current assets.The parent company has no tangible non-current assets, for this reason this division is not reported.

nOtES


note 8. Financial income and expenses


2012the Group



2011

interest income

Loans and receivables 714 767 122 5

Pensions 1,344 1,961 – –

Other financial income

Net exchange rate change – 614 – –

Financial income 2,058 3,342 122 5

interest expenses

Change in value synthetic options – -4,466 – -4,466

Financial liabilities valued at amortised cost -93,902 -85,278 -81,298 -69,785

Pensions -1,757 -2,373 – –

loans and accounts payable

Net exchange rate change – – – –

Other financial expenses -6,584 -955 -3,100 –

Financial expenses -102,243 -93,072 -84,398 -74,251

income and expenses by financial category

SEK thousands

Financial assets/liabilities are measured at fair value in

the income statement – held for trading

Financial assets measured

according to the Fair value Option

loans and receivables

liabilities valued at

amortised cost

Derivatives used for hedging

purposes total

the Group 2012

Income by category

Interest income – – 714 – – 714

Other financial income – – – – – –

Pension plan – 1,344 – – – 1,344

total – 1,344 714 – – 2,058

Expenses by category

Interest expenses – – – 93,902 – 93,902

Pension plan interest expenses – 1,757 – – – 1,757

Synthetic options – – – – – –

Other financial expenses – – – 6,584 – 6,584

total – 1,757 – 100,486 – 102,243

the Group 2011

Income by category


Other financial income – – 614 – – 614

Pension plan – 1,961 – – – 1,961

total – 1,961 1,381 – – 3,342


Interest expenses – – – -85,278 – -85,278

Net exchange rate changes – – – – – –

Pension plan interest expenses – -2,373 – – – -2,373

Synthetic options – -4,466 – – – -4,466

Other financial expenses – – -955 – – -955

total – -6,839 -955 -85,278 – -93,072

nOtES


note 8. Financial income and expenses (cont.)

income and expenses by financial category

SEK thousands

Financial assets/liabilities are measured at fair value in

the income statement – held for trading

Financial assets measured

according to the Fair value Option


liabilities valued at

amortised cost

Derivatives used for hedging

purposes total

parent Company 2012

Income by category


total – – 122 – – 122


Interest expenses – – – 81,298 – 81,298

Valuation of synthetic options – – – – – –

Other financial expenses – – 3,100 – – –

total – – 3,100 81,298 – 84,398

parent Company 2011

Income by category


total – – 5 – – 5


Interest expenses – – – -69,785 – -69,785

Valuation of synthetic options -4,466 – – – – -4,466

total -4,466 – – -69,785 – -74,251

nOtES


note 9. tax


2012the Group



2011

total reported tax

Current tax 3,330 46,048 22,188 18,384

Tax attributable to previous years -1,083 -699 -34 -106

Deferred tax -19,825 -4,103 – –

total -17,578 41,246 22,154 18,278

Differences between reported tax and estimated tax are based on the current tax rate consisting of the following components:

Difference in estimated tax at current tax rate – – – –

Reported profit before tax from continuing operations -49,150 -25,937 -84,299 -74,387

Reported profit before tax from discontinued operations – -118,492 – –

Tax according to current tax rate, 26.3 (26.3)% 12,926 37,985 22,171 19,564

Effects of non-taxable income and non-deductible expenses

Effect of other tax rates in other countries/foreign subsidiaries 1,032

–

–

–

Non-deductible expenses 6,692 -1,264 1 -1,180

Non-taxable income 12 10,392 – –

Effect of deficit utilised from previous years – -633 – –

Activation of previously unrecognised tax loss carryforwards -8,566 – – –

Tax attributable to previous years -1,083 -699 – –

Effect of changed tax rate – – – –

Difference between Swedish and foreign tax – – – –

Miscellaneous -28,591 -4,535 -17 –

total -17,578 41,246 22,155 18,384

The Group's effective tax for 2012 amounts to -35.8 (-28.6)% of taxable profit. The parent company's effective tax for 2012 amounts to -26.3 (-24.7)% of taxable profit.

Deferred tax assets and liabilities are attributable to the following:Changes in deferred tax assets and deferred tax liabilities related to the hedging instruments have been reported in other comprehensive income, other changes have been reported in the income statement.


2012the Group



2011

Deferred tax assets

Deferred tax attributable to deficits 517 1,100 – –

Hedging instruments (under Other comprehensive income) – – – –

Non-current assets -2,824 22,485 – –

Other provisions 1,439 – – –

Other receivables 782 – – –

Transferred to "Deferred tax liabilities" 86 – – –

provisions at year end – 23,585 – –

Deferred tax liabilities

Provisions for pension obligations 3,822 3,478 – –

Non-current assets – 3,762 – –

Deferred tax in untaxed reserves – – – –

Provisions 1,205 6,610 – –

Transferred from "Deferred tax liabilities" 86 – – –

provisions at year end 5,113 13,850 – –

Changes to deferred tax assets and liabilities are attributable to the following:

Change in deferred tax assets

Opening value 23,585 33,370 – –

Deferred tax attributable to deficits -583 -4,666 – –


Valuation of hedging instruments – -27,604 – –

Other provisions 1,439 – – –

Other receivables 782 – – –

Provisions for pension obligations – – – –

Closing value -86 23,585 – –

nOtES


note 9. tax (cont.)


2012the Group



2011

Change in deferred tax liability

Opening value 13,850 9,421 – –

Provisions for pension obligations 344 -98 – –


Change in deferred tax in untaxed reserves – -5,845 – –

Deficit deductions utilised – – – –

Provisions -5,405 6,610 – –

Closing value 5,027 13,850 – –

2012 2011 2012 2011

tax items reported directly in other comprehensive income

Deferred tax attributable in hedging reserves – – – –

tax items reported directly against equity

Current tax attributable to Group contributions -4,208 -48,245 -22,188 -18,384

total -4,208 -48,245 -22,188 -18,384

note 10. participations in Group companies (refers to the parent company)

Company's name Corp. iD no. Registered officeno. of

participations

Equity and voting

rights % book value

2012book value

2011

Euromaint AB 556084-8458 Stockholm 1,000 100 935,200 935,200

+ Shareholders' contribution 83,673

- Impairment -83,673

Closing value 935,200 935,200

Euromaint Rail AB 556032-2918 Stockholm 190,000 100

Euromaint Rail Bemanning AB 556670-3095 Stockholm 1,000 100

Euromaint GmbH Amtsgericht Leipzig Stadt HRB 25939 Leipzig / Germany 1 100

Euromaint SIA 40003885784 Riga / Latvia 15,000 100

The subsidiary Euromaint Tracksupport AB (556673-4363) was merged during 2012 with Euromaint AB (556084-8458).

note 11. participations in associated companies


2012the Group

2011

Carrying amount at year start 482 3,244

Investments 218 –

Sales -470 –

Share in profit of associates – –

Comprehensive income from participations in associated companies – –

Impairment losses – -2,770

Exchange rate differences -15 8

Carrying amount at year end 215 482

Holdings

The following specifications show the Group's associated companies.

Company's nameSEK thousands

Equity and voting rights %

book value 2012

book value 2011

LRS Polska, Poland 50 – 482

Euromaint Mobile Service BV 50 215 –

Associated companies owned by group companies 215 482

nOtES


In accordance with IAS 19, Employee Benefits, actuaries on behalf of Euromaint have calculated the Group's pension liability and the amounts that should currently be set aside for pensions for the Group's employees. Pension plans in Euromaint include both defined benefit and defined contribution plans.

Defined contribution pension obligations Euromaint's employees are mainly covered by defined contribution pension plans. Salaried employees are covered by the ITP1 plan and workers are covered by the SAF-LO plan. In accordance with a separate exception from the Swedish Agency for Government Employers, a small group of employees are also covered by the national pension plan, PA-03. All pension plans provide retirement and disability pensions and, in some cases, also survivor protection. Premiums are paid to independent legal entities and the size of the premium comprises a percentage of the employee's salary.

Defined benefit pension obligations Defined benefit pensions earned by salaried employees born in 1978 or earlier according to the ITP2 plan, which provides retirement, family and disability. Premiums for the ITP2 plan are paid on a regular basis to the insurance company Alecta. The size


The following defined benefit plans are recognised in the statement of financial position:

pension liability/asset (+/-) on the balance sheet plan 2012 2011

Funded pension obligation -3,679 -424

Unfunded pension obligation 9,667 13,382

Professional and occupational disability annuities, unfunded 5,063 5,776

total 11,051 18,734

Specification of the booked net debt in the statement of financial position 2012 2011

Net debt at year start -18,692 -16,511

Retained actuarial gains/losses on acquisition – –

Net cost of defined benefit pension -581 -2,968

Recognised in the balance sheet as an increase in pension liability – –

Remuneration paid 13,384 12,124

Premiums 1,002 –

Reimbursements -6,225 -11,379

net debt at year end -11,112 -18,734

Actuarial gains and losses 2012 2011

Actuarial loss at year start -12,767 -14,300

Amortisation of actuarial loss 5,740 1,961

Actuarial loss on the present value of obligations that arose during the year 4,559 1,994

Actuarial loss from change in assumptions -3,075 -9,329

Actuarial gains/losses on plan assets that arose during the year (+/-) -3,132 6,907

Actuarial loss at year end that is included in pension liability -8,675 -12,767

provisions for pensions and similar obligations in the balance sheet 2012 2011

Present value of funded obligations 55,071 59,739

Fair value of plan assets -57,130 -64,141

Receivable/liability (-/+) -2,059 -4,402

Present value of unfunded obligations 19,507 28,153

Retained actuarial gains/losses (+/-) -8,395 -12,767

Impairment of assets under IAS 19 point 58b 2,059 7,750

provisions in the statement of financial position for pensions and similar obligations 13,171 23,136

total provisions in the balance sheet for pensions and similar obligations 11,112 18,734

of the pension premium is based on the salary level for the employee and the cost of the premium is recognised in the income statement. According to a statement from the Task Force of the Swedish Financial Accounting Standards Councill, an obligation secured by an insurance policy with Alecta regarding retirement and family pensions for salaried employees in Sweden is a multi-employer defined benefit plan. For 2012, Euromaint has not had access to information to make it possible to recognise this plan as a defined benefit plan, for which reason the plan is recognised as a defined benefit plan. The fees for the year for pension insurance policies taken out with Alecta amount to approximately SEK 39 million.

There are also defined benefit retirement and family pensions that are earned in the PA-91 plan. PA-91 was a pension plan that covered personnel employed in state owned operations. The PA-91 plan is closed for new earnings and all pension earned is insured with KPA Pensionsförsäkring.

Euromaint is also paying a occupational injury life annuity to a group of former employees of Affärsverket Statens Järnvägar, as well as early retirement pensions according to so-called transitional provisions in previous state pension rules.

SEK thousandsthe GroupReported pension cost in the income statement 2012 2011

Cost of earned benefits 26 467

Interest expense 1,757 2,373

Expected return on plan assets -1,344 -1,961

Change in impairment of pension assets (IAS 19 paragraph 58b) 142 118

Amortisation of actuarial profit/loss (+/-) – 1,971

Change in payroll tax on change of pension liability – –

Cost of defined benefit pensions 581 2,968

Cost of defined contribution pensions – -49,603

Cost reported in the income statement – -46,635

Reconciliation of changes in plan assets 2012 2011

Fair value of plan assets at the start of the year 64,141 66,652

Expected return during the year 1,344 1,961

Premiums paid 1,002 –

Remuneration paid -6,225 -11,379

Actuarial gain during the year -3,132 6,907

the fair value of plan assets at year end 57,130 64,141

Calculation assumptions 2012 2011

Discount rate 1.30% 2.20%

Expected return on plan assets 2.20% 2.90%

Expected salary increase 2.10% 1.40%

Increase in outgoing pensions 1.10% 1.40%

Employee turnover – –

Increase in income base amounts 2.10% 1.40%

Expected average remaining service for employees 3 years 4 years

The discount rate is based on government bonds with the same term as the Group's pension obligations. The expected return on plan assets is based on the portfolio allocation which the insurance companies report. Long-term inflation measures are based on market expectations, which can be seen between real and nominal bonds.

Changes in IAS 19 Employee benefits: "The corridor method" for recognition of actuarial gains and losses on pension provisions will no longer apply from 2013. This means the Group will reverse the difference (SEK 10,314) directly in equity in January 2013.

note 12. pensions and similar obligations

nOtES


note 13. inventories

SEK thousandsthe Group 2012 2011

Gross stock 422,048 437,553

Obsolescence reserve -63,158 -58,909

Work in progress 73,429 75,692

net stock 432,319 454,336

Distributed as below

Replacement parts 89,019 92,670

Spare parts 268,920 276,450

Work in progress 73,429 75,692

Miscellaneous 951 9,524

total 432,319 454,336

note 14. trade receivables and other receivables


2012the Group



2011

Accounts receivable 350,793 369,000 – –

Receivables from Group companies 16,000 183,434 448,818 400,073

Tax assets 6,270 15,965 – –

Other receivables 28,734 46,040 5 –

Completed, not invoiced 3,200 19,577 – –

Prepaid expenses and accrued income 54,488 56,076 – 26

total 459,485 690,092 448,823 400,099

Specification of prepaid expenses and accrued income:

Prepaid rent 25,784 22,274 – –

Accrued income, maintenance measures 20,234 18,580 – –

Miscellaneous 8,470 15,222 – 26

total 54,488 56,076 – 26

note 15. interest-bearing liabilities

Fair value for interest-bearing liabilities approximates the book value, which is why the calculation of fair value has not been calculated. Book amounts for Group borrowing are as follows:

book value/fair value book value/fair value


2012the Group



2011

non-current component

Bank loans 405,000 450,000 401,800 450,000

Shareholder borrowings 503,198 448,669 503,198 448,669

Finance lease liability 11,611 13,276 – –

Other* -3,200 -5,120 – -5,120

total 916,609 906,825 904,998 893,549

* Other refers to bank charges for taking out the loan. These are amortised over the term and are reversed during the term of the loan.

Short-term component

Bank loans 45,000 45,000 – –

Finance lease liability 6,376 6,376 – –

Bank overdraft facility 111,839 118,751 – –

total 163,215 170,127 – –

Overdraft limit 196,934 187,779 – –

nOtES


note 15. interest-bearing liabilities (cont.)

The total loan facility with Swedbank includes SEK 1,090,000 thousand (1,040,000), and other institutions SEK 0 (0). SEK 330,000 thousand of the framework refers to a so-called Revolving Facility to cover the bank overdraft and warranty commitments. Of this, SEK 196,934 thousand is dedicated to the overdraft facility (SEK and foreign currency) and SEK 117,381 thousand (84,72) is utilised for issued bank guarantees. Available and utilised margin for senior debt is SEK 450,000 thousand. The margin of SEK 310,000 thousand to the loan facility's ceiling of SEK 1,090,000 thousand is equivalent to all amortisations made during the loan agreement and cannot be used for new loans.

Interest on the shareholder borrowings amounts to 12 % and is fixed until the loan is repaid.The Group's exposure, with respect to external borrowing, to changes in interest rates and the contractual timing of interest rate renegotiation is as follows:All loans with Swedbank run for 3 months. SEK 150 million of the loan sum has been hedged at a fixed interest rate of 1.95% with term until 14/02/2014, by

signing an interest rate swap contract.


2012the Group

2011

The average term in months for outstanding external bank loans is therefore: 6.5 3

Weighted average interest rates including interest margins were on the balance sheet date: 4.79% 4.97%


2012the Group



2011

interest rate duration

1 year or less 300,000 495,000 300,000 450,000

1-5 years 150,000 – 150,000 –

total 450,000 495,000 450,000 450,000

Relating to maturity bank loans and shareholder loans, see note 22.Relating to financial leasing agreements, see note 20.

note 17. trade payables and other liabilities


2012the Group



2011

Advance payment from customers 8,252 33,590 – –

Accounts payable 239,347 254,514 19 26

Liabilities to Group companies – – 239,130 219,267

Liabilities to credit institutions, interest-bearing 163,215 170,127 45,000 –

Other current liabilities 31,101 42,876 21 14

Invoiced, not completed 62,039 70,509 – –

Accrued expenses/deferred income * 203,459 230,887 84 108

total 707,413 802,503 284,254 219,415

* Specification of prepaid charges and accrued income.

Personnel costs 95,329 101,177 – –

Product liabilities 36,763 34,792 – –

Accrued costs, maintenance measures 53,821 59,019 – –

Miscellaneous 17,546 35,899 84 108

total 203,459 230,887 84 108

note 16. Other provisions

2012 2011

SEK thousandsthe Group warranties

Other provisions total warranties

Other provisions total

Provisions at year start 26,221 7,118 33,339 20,995 52,623 73,618

Provision for the year 4,865 577 5,442 6,291 21,159 27,450

Utilisation during the year -6,663 -3,662 -10,325 -4,393 -56,073 -60,466

Reclassification – – – 3,634 -3,634 –

Provisions in companies acquired over the course of the year

–

–

–

–

–

–

Provisions in companies sold over the course of the year – – – – -1,200 -1,200

Exchange rate difference -958 -259 -1,217 -306 -5,757 -6,063

provisions at year end 23,465 3,774 27,239 26,221 7,118 33,339

The parent company does not report any provisions. Provision for warranties starts to be calculated when a service is completed or the goods have been released to the customer.In order to estimate the amounts, historical data related to repairs and exchanges are generally used.Provisions for restructuring are reported when a detailed and formal restructuring plan has been established by the Group and when this has either started or has been made

publicly known.

nOtES


note 18. pledged assets and contingent liabilities


2012the Group



2011

pledged assets

Pledged shares in subsidiaries (net assets)* 246,276 284,796 246,276 284,796

Pledged floating charges 5,190 5,190 – –

total 251,466 289,986 246,276 284,796

Contingent liabilities

Pension obligations, FPG/PRI 16 30 – –

Other guarantees 117,381 84,721 – –

total 117,397 84,751 – –

total 368,863 374,737 246,276 284,796

Floating charges on assets and shares in subsidiaries (Euromaint AB and Euromaint Rail AB) are pledged in Swedbank as security for their total credit commitment. Pledged shares have been recorded at the value of net assets in the Group for the current subsidiaries. The Group gives warranties on refurbishment and maintenance work of up to 5 years after the completion date.

* In the carrying amount for pledged shares the consolidated goodwill of SEK 662 million has not been included.

the Group

SEK thousands 2012 2011

Future minimum lease payments

Within 1 year 86,303 96,451

Between 1 and 5 years 92,257 36,184

More than 5 years 3,412 23,015

total 181,972 155,650

Exposed lease rentals booked as costs 110,522 109,007

total 110,522 109,007

The rental of track and premises is recognised under the Group's operational leases.

note 19. Operating leases

the Group

SEK thousands 2012 2011

Future minimum lease payments

Within 1 year 6,242 6,393

Between 1 and 5 years 11,282 7,797

More than 5 years 1,387 704

total 18,911 14,894

Future minimum lease payments exclude guaranteed residual values, as these do not constitute a future payment. Guaranteed residual values are included in the closing lease liabilities however. The guaranteed residual values amount to SEK 4,335 thousand (1,107).

Written-off lease rentals 7,361 11,129

total 7,361 11,129

No variable fees are included in net income. The hire of vehicles, computers and some office equipment is reported under the Group's finance leases.

For the majority of the finance lease contracts, at the end of the contract Euromaint can either allocate a purchaser for the equipment for SEK 1,000, excluding VAT, return the equipment to the lessor or extend the contract (the new rental then becomes a quarterly rent per year as previously). the parent CompanyThere are no amounts to report for the parent company.

note 20. Finance leases

nOtES


note 21. Cash flow analysis, other items not affecting liquidity


2012the Group



2011

Change in personnel-related reserves – – – 0

Changes in provisions -13,722 -9,289 – –

Unpaid interest on shareholder borrowings 54,529 41,542 54,529 41,542

Impairment associates – 2,770 – –

Currency translation effects 453 5,018 – –

Other items 312 2,076 -12 1920

total 41,572 42,117 54,517 43,462

Cash and cash equivalents comprise cash and deposits held with banks and similar institutions with maturities within three months from the date of acquisition and short-term cash investments with a maturity from the date of acquisition of less than three months, which are only exposed to an insignificant risk of changes in value.

Disposal of subsidiaries during 2012

No disposals have been made during 2012

Disposal of subsidiaries during 2011

Disposed assets and liabilities

Non-current assets 50,668

Inventories 59,574

Operating receivables 82,890

Cash and cash equivalents 7,554

total assets 200,686

Provisions 2,069

Operating liabilities 89,238

total provisions and liabilities 91,307

net assets and liabilities 109,379

Sales 112,568

Deducted. Cash and cash equivalents in the acquired subsidiary -7,554

Effect on cash and cash equivalents 105,014

During 2011, the Euromaint Group disposed of two subsidiaries. One was the Swedish company Euromaint Industry AB, and the other was the German company Waggon- und Lokreparatur- Service GmbH. The income statements of the disposed companies are included in the consolidated income statement up to the day of disposal. The capital loss on disposal of Euromaint Industry AM amounted to SEK -7.2 million and the capital gain on disposal of Waggon- und Lokreparatur- Service GmbH amounted to SEK 0.8 million. The effect on cash or cash equivalents amounted to SEK 105 million.

Acquisition of subsidiaries during 2012

No acquisitions have been made during 2012 and 2011

nOtES


Through its operations, Euromaint is exposed to financial risks, including the effect of changes to prices in the loan and capital markets, exchange rates and interest rates. The Group's overall risk management focuses on the unpredictability of the financial markets and aims at minimising potentially unfavourable effects on the Group's financial results. Financial operations in the Group are centralised in Euromaint Rail AB's financial function. The finance function acts as an internal bank and is responsible for the sourcing of capital, cash management and financial risk management. The operations are regulated through the Group's Financial Regulations.

the following important financial risks are dealt with:

Market riskThe risk that the value of, or future cash flows from, a financial instrument varies due to changes in market prices. Currency risk and interest rate risk constitute market risks.

Currency risksCurrency risk refers to the risk of exchange rate fluctuations negatively affecting the Group's income statement, balance sheet and/or cash flows. Currency risk exists both in the form of transaction risk and translation risk. Euromaint is to some extent exposed to currency and transaction risks because of relatively large volumes purchased in foreign currency and small customer invoicing in the corresponding currencies. Purchases made in foreign currencies for major projects are hedged at 100% or are agreed with variable currency clauses during the tender/contract process. The financial regulations do not require currency hedges for the current net flows. Euromaint is exposed to the following currencies; EUR, NOK, USD, GBP, DKK, LVL and CHF. Euromaint's largest currency exposure is to goods purchased in EUR.

The net flow in EUR is approximately EUR 17,000 thousand (22,500) per year, which means that a 5% change in the exchange rate will affect purchase costs before hedging by approximately SEK 7.4 (10.0) million before tax. Currency hedging is no longer practised against this net flow. Exposure relating to the transaction risk attributable to the other currencies is not significant. Currency risk in the form of translation risk is attributable to the currencies EUR and LVL. Translation differences for internal investment loans in EUR are reported due to its character to equity.

Interest rate riskInterest rate risk refers to the risk of a negative effect on the Group's financial results resulting from changes in market interest rates. Euromaint is affected by the general rate adjustments through its external loan portfolio. To counter these, SEK 150 million of the loans has been hedged with a 2-year interest rate swap. The underlying loans run for 3 months. The interest rate swap gives a base rate of 1.95% up to the due date, 14/02/2014. Therefore, with the current size of the loan portfolio, an increase in

interest rates of 1% unit increases the annual interest expense for Euromaint by SEK 3.0 million before taxes. The shareholder loans carry a fixed rate of 12% until the loans are repaid.

Other risk

Credit riskCredit risk is the risk generated by the fact that the credit rating of the investor's counterparty can change in an unpredictable manner, thereby resulting in a loss for the Group. Euromaint has routines in place to minimise the ongoing customer credit risk in its operations. These procedures relate, for example, to credit testing, advances and warranty management, and ongoing credit monitoring. Identified customer losses during 2012 amounted to SEK 2,356 thousand (495). On balance sheet date, Euromaint had indirect collateral of approximately SEK 91 (140) million in the form of advances from customers. The Group considers that there are no significant concentrations of credit risk in respect of the financial assets.

Age analysis, trade receivables

Not due 216,847

Due 0-60 days 95,383

Due 61-180 days 15,398

Due 181-365 days 6,179

More than 1 year 16,986

total accounts receivable 350,793

Financial assets that are neither due for payment nor can be impaired are deemed to have a good credit quality.

Liquidity and refinancing riskRefinancing risks refer to the risk that the refinancing of mature loans will become difficult or costly and that Euromaint will thereby have difficulty fulfilling its payment obligations. Liquidity risk refers to the risk of difficulty in fulfilling the obligations associated with financial liabilities. EuroMaint's policy is to always have available cash and cash equivalents and secured refinancing to the extent required for the activity. As of 31 December 2012, there was a loan facility with Swedbank totalling SEK 1,090 (1,040) million including a bank overdraft facility with a framework of SEK 197 (187) million as well as a extended separate framework of SEK 50 (0) million solely dedicated to bank guarantees. As of the measurement day, 31 December 2012, Euromaint fulfilled all the requirements related to financial ratios associated with the financing agreement.

note 22. Financial risks and financial policy

nOtES


SEK thousands

the Group

Due dates on bank loans and shareholder borrowings: book value

Within 1 year 45,000

1-5 years 405,000

5 years or later 503,198

total 953,198

For lease liability due dates, see Note 19.

Fair value of derivative instruments as of the balance sheet date 2012 2011

Contracts with positive fair values:

Currency hedging (due date within 1 year) – –

Contracts with negative fair values:

Interest rate swap (due date 1-5 years) -1,331 –

Currency hedging (due date within 1 year) – –

note 22. Financial risks and financial policy (cont.)

loan terms and due date structure/interest rate renegotiation

SEKloans from credit institutions and shareholder borrowings nominal sum Due date 1 year or less within 1-5 years

Bank loans 90,000 30/08/2014 45 000 45,000

250,000 30/08/2015 – 250,000

110,000 30/08/2016 – 110,000

Shareholder borrowings 503,198 * – –

total 953,198 45,000 405,000

* The loan becomes due on request.

Transaction exposure along with currency hedged volumesCurrency hedged sales converted to SEK thousand2012 SEK EuR nOK Other total

Currency

Net turnover 1,841,570 677,370 9,454 287 2,528,681

Currency hedged volume – – – – –

net currency exposure 1,841,570 677,370 9,454 287 2,528,681

Currency hedged forecast volume

Within 1 year

Net turnover 2,000,000 600,000 – – 2,600,000


net currency exposure 2,000,000 600,000 – – 2,600,000

1-3 years

Net turnover 6,000,000 1,800,000 – – 7,800,000


net currency exposure 6,000,000 1,800,000 – – 7,800,000

nOtES


note 23. information on fair value of financial instruments

Fair values of all financial instruments are significantly consistent with book values, as all interest including interest on shareholder borrowings is deemed marketable.

Fair value of comprehensive income

the Group 2012

the parent Company2011

Assets level 1 level 2 level 3 level 1 level 2 level 3

Non-current investment, pension obligations, not interest-bearing * – – – – –

–

total – – – – – –

liabilities level 1 level 2 level 3 level 1 level 2 level 3

Synthetic shares and options ** – – 11,246 – – 11,246

Derivative financial instruments – – – – – –

total – – 11,246 – – 11,246

Level 1. Fair value determined by quoted prices in an active market for the same instrument.Level 2. Fair value determined using either directl (as prices) or indirect (derived from price) observable market data not included in Level 1.Level 3. Fair value based on using input data that is not observable on the market. The value of the liability for the synthetic shares is based on an external measurement, where

a Fair Market Value has been assessed using a DCF model (discounted cash flow). The cash flows have been calculated based on the company's business plans, market prospects, investment plans and growth forecasts and then discounted by a weighted average capital cost (WACC). For the 2011 measurement, a WACC of 13% was used. When determining the discount rate, consideration has been given to specific risks in the market and to the company, risk-free rate, market loan margins and the company's capital structure. The model calculates an Equity Value (EQV) based on the value of the entire company less the loan.

The value of the liability for the synthetic options has been calculated using the Black-Scholes valuation method and is based on the company's extent and terms for the incentive programme, share valuation and statistics on volatility and yield rates for government bonds.

* Reported as net under provisions, pensions.** Synthetic options were valued by an external independent valuer in 2011.

Financial assets and liabilities valued at fair value in the income statement

Synthetic shares and optionsthe Group

2012the Group



2011

Opening balance 11,246 13,105 11,246 13,105

Profit/loss, income statement – 4,467 – 4,467

Acquisitions – 648 – 648

Concluded – -6,974 – -6,974

Closing balance 11,246 11,246 11,246 11,246

nOtES


note 24. Financial instruments

SEK thousandsthe GroupAs of 31 December 2012

Financial assets measured at fair value via the income statement


Derivatives used for hedging purposes

Assets by category held for trading book value book value

Accounts receivable – 350,793 –

Other receivables – 28,734 –

total – 379,527 –

Financial liabilities valued at fair value via the income statement

liabilities valued at amortised cost


liabilities by category held for trading book value book value

Non-current interest-bearing liabilities – 401,800 –

Shareholder borrowings – 503,198 –

Synthetic options and shares 11,246 – –

Current interest-bearing liabilities – 163,215 –

Accounts payable – 239,347 –

Other liabilities – 31,101 –

total 11,246 1,338,661 –

SEK thousandsthe GroupAs of 31 December 2011





Accounts receivable – 369,000 –

Other receivables – 46,040 –

total – 415,040 –








Current interest-bearing liabilities – 170,127 –

Accounts payable – 254,514 –

Derivative instruments, current – – –

Other liabilities – 31,630 –

total 11,246 1,349,820 –

nOtES


note 24. Financial instruments (cont.)

SEK thousandsthe parent CompanyAs of 31 December 2012





Receivables from Group companies – 448,818 –

total – 448,818 –








Accounts payable – 19 –

Liabilities to Group companies, non-interest bearing – 239,130 –

total 11,246 1,144,147 –

SEK thousandsthe parent CompanyAs of 31 December 2011





Receivables from Group companies – 400,073 –

total – 400,073 –








Accounts payable – 26 –

Liabilities to Group companies, non-interest bearing – 277,817 –

total 11,246 1,171,392 –

note 25. Distribution of net turnover


2012the Group



2011

Sale of services 2,357,781 2,873,323 248 1,787

Sale of goods 131,591 314,750 – –

total 2,489,372 3,188,073 248 1,787

note 26. Completed, not invoiced

SEK thousand Assets in the balance sheet

the Group 2012

the Group 2011



Accrued income 3,200 739,736 – –

Invoiced amounts – -720,159 – –

total 3,200 19,577 – –

For contracts reported according to the percentage of completion accounting method the degree of completion is determined in relation to the abandoned contract costs compared to forecast contract costs incurred. Information about the total assignment revenue and costs incurred reported in the income statement during the period is not provided as these charges are deemed to be sensitive.

nOtES



Invoiced amounts 139,909 111,925

Accrued income -77,870 -41,416

total 62,039 70,509

In August 2011, the Group decided to discontinue the Business Area Refurbishment. The Business Area was operated during the years 2009-2011 as a separate business, both in terms of operations and reporting. Since the decision was taken, the Business Area has been recognised as a discontinued operation in the income statement for 2011.

SEK thousandsprofit or loss for the year in discontinued operations 2012 2011

Revenue – 140,619

Expenses – -259,111

Tax for the year * – –

profit/loss for the year – -118,492

* The tax revenues in the Group are essentially attributable to Group contributions and are not deemed to be business area specific.

SEK thousandsnet cash flow from discontinued operations 2012 2011

Cash flow from operating activities – -76,350

Cash flow from investing activities ** – –

Cash flow from financing activities ** – –

net cash flow – -76,350

** The business area is essentially considered not to have been the owner of the Group's loans or assets, whereupon only the cash flow from the business area's operating activities is recognised.

The Group operates in two segments taking into account how the Group organises the sales of goods and services. The two segments are Sweden and Central Europe. All sales in the parent company are internal whereupon they are omitted. Distribution of net turnover in the Group are as given below:


Sweden 1,843,276 2,373,929

Central Europe 646,096 814,144

total 2,489,372 3,188,073

note 27. invoiced, not completed

note 28. Discontinued operations

note 29. Distribution of net turnover by segment

Stockholm, 2 March 2013

Leif Johansson Chairman of the Board

Ove Bergkvist Jonathan Wallis Hans Pettersson CEO

nOtES


Auditors' report

To the Annual General Meeting of Euromaint Gruppen AB, reg. no.556731-5402

REpORt On thE AnnuAl REpORt AnD thE COnSOliDAtED FinAnCiAl StAtEMEntSWe have audited the Annual Report and Consolidated Financial Statements for Euromaint Gruppen AB for 2012. The company's Annual Report and Consolidated Financial Statements are included in the printed version of this document on pages 26-59.

The Annual Report and the Consolidated Financial Statements are the responsibility of the Board of Directors and the Chief Executive Officer.The Board of Directors and Chief Executive Officer have the responsibility for preparing an Annual Report giving a true and fair view according to the Swedish Annual Accounts Act, and a Consolidated Financial Statement giving a true and fair view according to International Financial Reporting Standards as they have been adopted by the EU, and the Swedish Annual Accounts Act, and for the internal controls the Board of Directors and the Chief Executive Officer deem necessary in order to prepare an Annual Report and Consolidated Financial Statements that do not contain material misstatements, whether these are due to fraud or error.

The auditor's responsibilityOur responsibility is to express an opinion about the Annual Report and the Consolidated Financial Statements based on our audit. We have performed the audit according to International Standards on Auditing and generally accepted auditing practice in Sweden. These standards require us to comply with professional ethical requirements and to plan and perform the audit to obtain reasonable assurance that the Annual Report and the Consolidated Financial Statements are free of material misstatement.

An audit involves taking various actions to obtain audit evidence about amounts and other information in the Annual Report and the Consolidated Financial Statements. The auditors decide the actions that are to be taken, including by assessing the risks for material misstatement in the Annual Report and the Consolidated Financial Statements, whether these are due to fraud or error. During this risk assessment, the auditors take into account the parts of the internal controls that are relevant for the way the company prepares the Annual Report and the Consolidated Financial Statements to give a true and fair view, in order to design audit procedures that are appropriate taking into account the circumstances, but not for the purpose of making a statement about the effectiveness of the company's internal control. An audit also includes assessing the appropriateness of the accounting principles that have been used and the reasonableness of the Board of Directors and Chief Executive Officer's estimates in the statements, as well as assessing the overall presentation in the Annual Report and the Consolidated Financial Statements.

We consider that the audit evidence we have collected is sufficient and appropriate to provide a basis for our opinion.

OpinionIn our opinion, the Annual Report has been prepared in accordance with the Swedish Annual Accounts Act and gives in all material respects a true and fair view of the parent company's financial position as of 31 December 2012 and of its financial performance and cash flow for the year according to the Swedish Annual Accounts Act. The Consolidated Financial Statements have been prepared in accordance with the Swedish Annual Accounts Act and gives in all material respects a true and fair view of the Group's financial position as of 31 December 2012 and of its financial performance and

cash flow for the year according to the Swedish Annual Accounts Act. The Directors' report is consistent with other parts of the financial statements and the consolidated financial statements.

We therefore recommend that the Annual General Meeting adopt the income statement and balance sheet for the parent company as well as the statement of comprehensive income and consolidated statement of financial position.

REpORt On OthER REQuiREMEntS ACCORDinG tO lAwS AnD OthER StAtutES In addition to our audit of the Annual Report and Consolidated Financial Statements, we have also performed an audit of the proposed appropriation of the Company's profit or loss as well as the Board of Directors' and Chief Financial Officer's administration of Euromaint Gruppen AB for the year 2012.

The Board of Directors' and the Chief Executive Officer's responsibilityThe Board of Directors is responsible for the proposal for the appropriation of the company's profit or loss, and the Board of Directors and the Chief Executive Officer are responsible for the administration according to the Companies Act.

The auditor's responsibilityOur responsibility is to express an opinion with reasonable assurance on the proposal for the appropriation of the company's profit or loss and on the administration based on our audit. We have performed the audit according to generally accepted auditing practice in Sweden.

As a basis for our opinion on the Board of Directors' proposal for the appropriation of the company's profit or loss, we have reviewed the Board's reasoned opinion, as well as a selection of evidence for this, in order to assess whether the proposal complies with the Companies Act.

As the basis for our pronouncement on discharge from liability, we have, in addition to our audit of the Annual Report and the Consolidated Financial Statements, examined significant decisions, actions taken and circumstances in the Company in order to be able to determine the liability to the Company, if any, of any Board Member or the Chief Executive Officer. We have also examined whether any member of the Board or the CEO has otherwise acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association.

We consider that the audit evidence we have collected is sufficient and appropriate to provide a basis for our opinion.

OpinionWe recommend that the Annual General Meeting appropriate the profit of the parent company according to the proposals contained in the Director's Report and discharge the Board Members and the Chief Executive Officer from liability for the financial year.

Stockholm, 2 March 2013KPMG AB

Fredrik Sjölander Authorised Public Accountant

AuDitORS' REpORt



thE bOARD OF DiRECtORS

The Board of Directors

lEiF JOhAnSSOnPosition: Chairman of the Board Date of Birth: 1949 Board Member since: 2012Other board appointments: Board Member, Arcus-Gruppen AS, Inwido AB and Profura ABEducation: Combined engineering and business degreeCurrent employment: Deputy CEO and Senior Advisor, Ratos

hAnS pEttERSSOnPosition: Board MemberDate of Birth: 1951Board Member since: 2011Other board appointments: Board Member, Skånska Energi AB, Chairman of the Board Flextrus ABEducation: MSc in ForestryCurrent employment: CEO, Dynea

JOnAthAn wAlliSPosition: Board MemberDate of Birth: 1974Board Member since: 2007Other board appointments: Board member of KVD Kvarndammen ABEducation: MSc Econ., Stockholm School of Economics, BA Stockholm UniversityCurrent employment: Senior Investment Manager, Ratos

OSCAR hERMAnSSOnPosition: Deputy MemberDate of Birth: 1979Board Member since: 2012Other board appointments: Scandinavian Business Seating ASEducation: MSc Econ., Stockholm School of EconomicsCurrent employment: Investment Manager, Ratos



OvE bERGKviSt Position: CEO and President, acting Business Area Manager – PassengerDate of Birth: 1968Employed by Euromaint: 2011

GuStAv JAnSSOn Position: Business area Manager Work MachinesDate of Birth: 1952Employed by Euromaint: 1978

AnnE-CAthERinE wORthPosition: Communications ManagerDate of Birth: 1969Employed by Euromaint: 2012

lEnA GEllERhED Position: HR ManagerDate of Birth: 1968Employed by Euromaint: 2007

MAttiAS wESSMAnPosition: CIODate of Birth: 1974Employed by Euromaint: 2009

hEnRiK DAGbERGPosition: Strategy ManagerDate of Birth: 1972Employed by Euromaint: 2009

inGElA ERlinGhultPosition: Business area Manager ComponentsDate of Birth: 1965Employed by Euromaint: 2009

CECiliA wAllbERGPosition: CFODate of Birth: 1966Employed by Euromaint: 2006

Company management

COMpAny MAnAGEMEnt

EuroMaint Annual Report 2012


Produced by IR Stockholm and Euromaint.Photography: Maria Åsén and Euromaint.

Picture of page 11 loaned by Metro Service.Illustration on page 16 Martin Thelander.

Printed by: Vitt Grafiska.


www.euromaint.com

Head officeEuROMAint AbBox 1555SE-171 29 SolnaVisiting address: Svetsarvägen 10, Solna, Sweden

Head office, GermanyEuROMAint RAil GMbhKarl-Marx-Straße 39D-04509 DelitzschGermany

Documents

EuroMaint Annual Report 2012 Report Euromaint AB...12De-icng fnn2ia ltyeDg EurEEuroMaint Annual Report 2012 3 Operational activities Group overview 4 The year in brief 6 The CEO's