Press Release

Interim Report January – March 2014

07 May 2014


· Revenue increased by 7.3% to SEK 501.1m (SEK 467.0m), 22.9% in rubles

· Operating profit amounted to SEK 10.2m (SEK -9.7m)

· Operating margin was 2.0% (-2.1%)

· EBITDA amounted to SEK 31.0m (SEK 17.2m)

· The after-tax result amounted to SEK -1.5m (SEK -34.6m)

· Earnings per ordinary share amounted to SEK -0.15 (SEK -3.46)

· Cash flow from operating activities amounted to SEK -6.2m (SEK 190.3m)

Three months ended 31 March 2014
Three months ended 31 March 2013
Three months ended 31 March 2014 501.1
Three months ended 31 March 2013 467.0
Three months ended 31 March 2014 31.0
Three months ended 31 March 2013 17.2
Operating Profit
Three months ended 31 March 2014 10.2
Three months ended 31 March 2013 (9.7)
Three months ended 31 March 2014  
Three months ended 31 March 2013  
Net Debt
Three months ended 31 March 2014 71.5
Three months ended 31 March 2013 371.8
Net Debt / EBITDA
Three months ended 31 March 2014 0.4x
Three months ended 31 March 2013 3.2x


· The first quarter has been characterized by significant political uncertainty resulting from the development in Ukraine and the deteriorating relations between Russia and other members of the international community. Despite the uncertain situation Ferronordic Machines is continuing to develop positively.

· During the first quarter we managed to increase revenue and improve profitability. The revenue increased by 7.3% in SEK and 22.9% in local currency. The number of new machines sold during the first quarter amounted to 298, an increase of 14.2% compared to the same period last year. Our EBITDA margin increased from 3.7% to 6.2%.

· In view of the turbulent political situation and the uncertain market environment, we are very pleased to have been able to grow revenue and profitability. We take this as a sign that our significant investments in our extensive network and training and competence development of our personnel continue to bear fruit.

· On 30 April the first pidend payment on our preference shares was made in an amount of SEK 50 per preference share, amounting to a total pidend payment of SEK 25m. For the AGM 2014 on 20 May the Board has proposed another pidend payment on preference shares for 2013 amounting to SEK 100 per preference share, i.e. in total SEK 50m.

· All in all we remain cautiously optimistic when looking forward into the remainder of 2014 and beyond as the long term fundamentals in the Russian construction equipment market remain strong. The short and medium term market development, however, is difficult to predict and the challenges described above create additional uncertainties. We continue to monitor the situation carefully and will adopt to possible changes in the overall market development.

About Ferronordic Machines

Ferronordic Machines is the authorized dealer of Volvo Construction Equipment in Russia. The company began its operations in June 2010 and has expanded rapidly across Russia and is today well established in all federal districts with over 70 outlets and over 700 employees. In addition to distributing and providing aftermarket support to Volvo Construction Equipment machines, the company has also been appointed aftermarket dealer for Volvo Trucks as well as dealer for Volvo Penta in certain parts of Russia. The company has also signed up some other high quality brands such as LogSet and several attachment manufacturers. The vision of Ferronordic Machines is to be regarded as the leading service- and sales company in the CIS markets.

For more information, please contact:

Anders Blomqvist, CFO and Head of IR, Tel: +46 8 5090 7280

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