Annual Report 2008 - euromaint.org Report 2008.pdf · EuroMaint has been owned by Ratos since 2007...

AnnualReport20082008

2

Group Overview 3

The CEO's comments 6

Business concept, vision, strategies and targets 8

EuroMaint's offering 10

SUBSIDIARIES

EuroMaint Industry 14

EuroMaint Rail 20

BOARD AND MANAGEMENT

The Board of Directors EuroMaint 28

Management teams 30

Financial Summary 32

Contents

EUROMAINT ANNUAL REPORT 2008

GROUP OVERVIEW

EuroMaint has operations in 15 locations in Sweden, plus in Jelgava, Latvia

and Detroit in the USA. Swedish and foreign customers are served from

these junctions.

The two subsidiaries, EuroMaint Industry and EuroMaint Rail, operate

within different customer segments. The collective main product is

a comprehensive service concept within maintenance and production stream-

lining. At Group level, industry-wide matters are pursued that promote

business development and contribute towards maintaining and developing

the position as a leading partner for industry and the rail transport sector.

EuroMaint Industry is a specialist at production streamlining within

the engineering industry. The Company develops and maintains production

equipment, components and processes.

EuroMaint Rail is Sweden's leading provider of technical maintenance

services for the rail transport sector. EuroMaint Rail maintains and refurbishes

all types of rolling stock and their components.

All operations within EuroMaint have the objective of increasing customers'

efficiency.

EuroMaint has been owned by Ratos since 2007 and at 31 December

2008, had approximately 1,750 employees. The Group's head office is

in Sundbyberg.

EuroMaint is a unique supplier of technical maintenance services and other services that support the effective utilisation of advanced production equipment. Customers are mainly within the engineering and rail transport industries in Sweden and abroad.

A leading and innovative partner for industry and the rail transport sector

GROUP KEY FIGURES 2008 2007 2006

Turnover, SEK million 2,324 2,067 2,037

Operating profit, SEK million 118 67 100

Cash flow, SEK million 87 -14 45

Operating margin, % 5 3 5

Equity/assets ratio, % 24 23 24

Average no. of employees 1,755 1,771 1,747

Sickness absence, % 3.8 4.7 4.7

3

CASH FLOW AFTER INVESTMENTS, SEK million

TURNOVER BROKEN DOWN BY INDUSTRY

Rail transport industry 85%

Engineering industry 15%

2004 2005 2006 2007 2008

87

-38

14

-14

0

-20

-40

20

40

60

80

45TURNOVER, SEK million OPERATING PROFIT, SEK million

2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

2,32

4

118

1,49

3

1,87

2

114

47

2,03

7

100

2,06

7

1,400

1,200

1,600

1,800

2,000

2,200

2,400

40

20

60

80

100

120

140

67

EuroMaint carries out operations in Luleå, Vännäs, Sundsvall, Gävle, Borlänge, Örebro, Åmål, Hallsberg, Stockholm, Skövde, Linköping, Huskvarna, Göteborg, Nässjö and Malmö, as well as in Jelgava, Latvia and in Detroit, USA.

Sweden

Latvia

For 2007 and earlier, refer to the pro forma figures.

DefinitionsOperating margin = operating profit in relation to turnoverEquity/assets ratio = Equity and shareholder borrowing in relation to the balance sheet total

100

EuroMaint Industry develops and maintains production equipment, components and processes within the industry. The company has its head office in Skövde and operations are also carried out in Gävle, Gothenburg, Hallsberg, Huskvarna and Åmål as well as in Detroit in the USA.

Through efficient and innovative maintenance, EuroMaint Rail facilitates punctual and safe rail transport. The company has its head office in Solna and activities in 13 locations throughout Sweden, as well as in Jelgava, Latvia.

4

■ Seven-year contract with Swiss AAE EuroMaint Rail signed a seven-year contract with Swiss AAE regarding

the maintenance of 300 freight carriages in service between Luleå and

Borlänge, Sweden.

■ New CEO Ole Kjörrefjord took over as President and CEO of EuroMaint.

He had been Chairman of the board since 2007. In conjunction with him

becoming CEO, Wille Laurén has taken over as Chairman of the board.

■ Letter of intent with Husqvarna EuroMaint Industry has signed an agreement with Husqvarna about the

takeover of operations employing 64 people. The takeover took place on

1 January 2009.

■ Refurbishment of SJ's locomotive drawn passenger carriages EuroMaint Rail received the commission to modernise Swedish train

operator SJ's locomotive drawn passenger carriages from the 1980s.

The order is valued at SEK 350 million and the first refurbished carriages

will enter service in the summer of 2009.

■ New CEO of EuroMaint Rail EuroMaint strengthened its Group Management with the appointment

of Mats Önner as CEO of EuroMaint Rail and Ilona Östlund as

Corporate Communications Director.

■ Takeover of operations in Norrsundet, Gävle, Sweden EuroMaint Industry took over the operations of a maintenance depart-

ment at Stora Enso's facility in Norrsundet. In connection with the new

partnership, EuroMaint Industry is opening a local office in the area.

■ First workshop outside Sweden EuroMaint Rail opened its first workshop outside Sweden – in Jelgava,

Latvia.

■ Major contract for EuroMaint Industry EuroMaint Industry signed an agreement with Volvo Powertrain regarding

the delivery of equipment for quality assurance to the company's engine

factories in Brazil, France, Sweden and the USA. The framework agreement

relates to In Process Verification, IPV, equipment. The deal is valued at

approximately SEK 150 million and is the biggest to date in EuroMaint

Industry's history.

FOLLOWING THE YEAR-END

January 2009

■ Henrik Dagberg took over as Business Development Director

for EuroMaint.

■ EuroMaint Industry served redundancy notices to 36 employees at its

maintenance and tools operation in Hallsberg – a direct consequence

of the decline in the automotive industry.

■ EuroMaint Rail signed a seven-year contract with Arriva regarding the

maintenance of Kinnekulletåg, the regional commuter trains running

between Gothenburg and Örebro in Sweden. Arriva is taking over as

the rail operator from 1 June after receiving the commission from local

transport company Västtrafik.

■ EuroMaint Rail received a five-year commission from Veolia Transport to

handle the maintenance of Kustpilen, the 11 engine coaches that serve

the Linköping–Kalmar and Linköping–Västervik routes for local transport

company Östgötatrafiken.

■ EuroMaint announced that Åke Finn, the former CFO for EuroMaint,

would be leaving his position within the Group.

5

IMPORTANT EVENTS

6

Neither we nor our customes are immune to the downturn in the global

economy that we witnessed during the autumn of 2008. Compared with

many other industries however, the maintenance sector is less affected by

reduced demand. Furthermore, EuroMaint has focused on creating clear

results areas where competent managers, together with their employees,

can seize business opportunities and adapt their operations to suit the

customers' needs.

I became President and CEO at the end of 2008, but have observed

EuroMaint from very close quarters since 2007 when I became Chairman

of the board for the Group. EuroMaint is a Group with enormous potential.

During 2008, we increase our turnover by 12 per cent to SEK 2,324 million

and the profit increased by 75 per cent to SEK 118 million, the highest operating

profit ever.

Operating in a confidence sectorEuroMaint will be a leading and innovative partner that increases its customers'

efficiency. We operate in a confidence sector. Our customers hand over the

responsibility for their valuable production equipment to us and our services

are often entirely necessary in order for customers to achieve their business

objectives. This is a great responsibility and we view our task with the utmost

seriousness.

During 2008, we have received plenty of evidence that we are succeeding

at our task. EuroMaint Industry has expanded to new locations within

Sweden and EuroMaint Rail gained the extended confidence of a number of

important customers during the year.

Furthermore, we are making great strides in the important internal

improvement work that is required to increase our efficiency and to achieve

our long-term goals. With clearer budget responsibility, more efficient

processes and a strengthened organisation, EuroMaint Rail has improved

both its deliveries to customers and its financial results. EuroMaint Industry

has gone from zero profit to profit.

Renewed faith in EuroMaint RailEuroMaint Rail has gained a new CEO during the year – Mats Önner took

over on 1 September. The subsidiary has also been reorganised in order

to create four clear business areas with their own budget responsibility;

Availability, Components, Refurbishment and Work Machines. The aim is

to achieve more efficient and more industrialised processes, as well as

consistently high quality in all deliveries to customers.

During the first half of 2008, EuroMaint Rail received renewed orders from

Swedish train operator SJ for the maintenance of its high-speed X2 trains,

RC locomotives and a large number of passenger carriages. The renewed

contracts have only been extended for one year however, which means that

during the first quarter of 2009, we face several negotiations that are crucial

for the business. The good work that we have been able to demonstrate

during the second half of 2008 means however that we can confidently look

ahead to these new contract negotiations.

EuroMaint Rail has increased its turnover by 9 per cent, yet despite an

increased profit compared with the previous year, it did not fully achieve its

profit target for the year. The successful work of streamlining the business

was completed at the end of 2008 however, which means that there are good

possibilities of strengthening the profits in the future.

In 2008, EuroMaint Rail officially opened its first workshop overseas, in

Jelgava in Latvia. This was a strategically significant step in order to be able

to become an major supplier when the large railway market in the East is

deregulated.

The former subsidiary EuroMaint Tracksupport returned to the operations

within EuroMaint Rail during the year, where it formed the Work Machines

business area.

New operations for EuroMaint IndustryEuroMaint Industry has developed extremely positively during the year.

Strong leadership has created commitment among employees and

EuroMaint Industry has won a number of strategically important orders.

In December, a contract was signed with Husqvarna, the worlds leading

manufacturer of outdoor products, regarding the takeover of a department

that works with the maintenance of production equipment and the production

of die casting tools. From 1 January 2009, EuroMaint Industry formally took

over operations in Huskvarna that employ 64 people.

During the year, we have also acquired the maintenance staff from

Stora Enso's pulp and paper manufacturing works in Norrsundet. The deal

is an important step that is in line with our strategy of becoming established

near to our customers throughout Sweden. Turnover for EuroMaint Industry

increased by 34 per cent to SEK 363 million during 2008.

THE CEO'S COMMENTS

2008 was a successful year for EuroMaint; a year with good growth, improved profitability and a more stable platform for future expansion. We have strengthened our organisation and market position, and are better equipped for future challenges.

Platform for future expansion

7

Challenges in 2009EuroMaint's goal for the coming years is to profitably grow

– in terms of turnover, geographically and in new sectors.

In order to do this, we must demonstrate to existing and potential

customers that we are the most competent business partner.

EuroMaint Industry will utilise its knowledge via the expansion

into new sectors and areas within Sweden, as well as by increasing

its commissions overseas, partly via the office in Detroit.

For EuroMaint Rail, the challenge is to streamline and further

increase the quality of the maintenance work, and thereby protect

the large market share in Sweden. At the same time, EuroMaint Rail

will enter new markets.

2009 will be a year filled with challenges. The global recession

will affect us and our customers considerably more than it did

in 2008 and we must be prepared for this. On the one hand,

our customers within rail transport will benefit from more people

choosing to travel by train, which is an environmentally-friendly and

relatively cheap method of travel. On the other hand, the transport

of goods decreases during a recession, reducing the need for the

maintenace of freight trains. For EuroMaint Industry, we see the

potential for more companies considering the outsourcing of their

maintenance departments. At the same time, EuroMaint Industry

is affected by the significant decline within the automotive industry,

and decisions regarding new business are more difficult for customers

to make in a market that is uncertain.

Impressive competence within the companyI have been fortunate to have travelled to all of our facilities during

the year and I am particularly impressed by the competence, loyalty

and experience that I have encountered in the company. There

is enormous motivation and creativity within EuroMaint, which

provides us with a great platform for achieving our goal of being a

leading and innovative partner both in Sweden and abroad.

2009 looks as though it will be a year of global recession and

therefore it is more important than ever that we utilise our full potential

and remember to put our customers first in every stage of the work

we do. These characteristics certainly prevail within EuroMaint and

that gives me great confidence for the future.

Ole Kjörrefjord, President and CEO

8

BUSINESS CONCEPT, VISION, STRATEGIES AND TARGETS

EuroMaint's business concept is to offer cost-effective maintenance and technical solutions that increase the availability, reliability and working life of production equipment. The vision is to be a leading partner within the maintenance and service of production equipment in all industries and markets where the company is active.

The Group's competence and structural capital can be transferred to new industries and markets

EuroMaint has lengthy experience and broad competence within mainten ance.

In order to become a leader and retain our customers' confidence, the company

is working to continuously improve and develop new, innovative products.

EuroMaint is a value generating partner that increases its customers competi-

tiveness, which means that the Group's profitability is a result of the

customer's profitability.

GoalEuroMaint's overall goals are to:

• Achievegrowthinbothturnoverandprofitduring2009–2011

• Establishoperationsinmoreindustriesandgeographicalmarkets

outside Sweden

Growth strategiesEuroMaint's recognised developed management systems, processes and

approach – the Group's structural capital – can be transferred to more

industries in order to streamline the maintenance work and raise the utilisation

ratio of customers' production facilities.

Against this background, EuroMaint has the potential to grow

geographically as well as in new industries. A number of growth strategies

have been defined:

• Supplementaryassignmentsfromexistingcustomers

• Acquisitionsandtakeoversofoperationsincurrentmarketsandindustries

• Newcustomersandmarkets

• Newindustries

Supplementary assignments from existing customersA natural part of EuroMaint's growth strategy is to deepen the partnerships

with existing customers and constantly provide them with new maintenance

technology and efficient solutions.

EuroMaint Rail has a strong position on the Swedish market for the

maintenance of rolling stock with a market share of approximately 50 per cent,

and as a highly regarded maintenance partner, there are good opportunities

for receiving new assignments.

In 2008, Swedish train operator SJ took over as the operator for Norrlands-

trafiken the longdistance traffic operating between Stockholm and the

northern parts of Sweden, and agreed a contract in connection with this with

EuroMaint Rail as mainten ance provider. The five-year contract includes the

maintenance of locomotives and passenger carriages. The key reasons that

EuroMaint won the commission was because the company is nationwide

and because it deals with both light and heavy maintenance.

During 2008, EuroMaint Rail has also received several extended

agreements with SJ, and has been commissioned to modernise SJ's locomotive

drawn passenger carriages from the 1980s. Another example of strengthened

partnerships is the maintenance of approximately 300 of the Swiss company

AAE's freight carriages in service between Luleå and Borlänge, Sweden.

Acquisitions and operational takeoversMore and more companies are considering the outsourcing of their

mainten ance operations. A partnership with a company that specialises

in maintenance can increase efficiency and therefore competitiveness.

This creates business opportunities for EuroMaint's subsidiaries.

9

When EuroMaint takes over an existing business, the Group's work methods

should make the acquired business more effective so that profitability

increases for customers, and thereby for EuroMaint also. It should also be

possible to offer the overtaken operation's services to external customers.

During 2008, EuroMaint Industry agreed contracts regarding the takeover

of two business operations. Stora Enso's operations in Norrsundet were taken

over and the operations of Husqvarna's maintenance and tools departments in

Huskvarna were taken over at the start of 2009. In 2006, EuroMaint Rail took

over the maintenance activities for commuter train transport in Stockholm.

EuroMaint is also working continuously to evaluate potential acquisition

targets. There are possible acquisitions within the following segments:

• TrainmaintenancecompaniesinprioritisedEUcountries

• MaintenancecompaniesintheNordicregionthatstrengthenEuroMaint

Industry's market presence, particularly within the engineering and

process industries

In order for EuroMaint to be interested in an acquisition, the technical level

of the business should be sufficiently high so that the Group's structural

capital can be utilised effectively. Furthermore, there must be high availability

requirements on the fixed assets included in the maintenance obligations

being taken over.

Ratos is a strong and long-term owner of EuroMaint, guaranteeing the

availability of both knowledge and capital for company acquisitions.

New customers and marketsThe Swedish market for rail passenger transport is expected to be deregulated

in 2010 provided that Parliament decides to withdraw Swedish train operator

SJ's monopoly on the core rail network. Once the market has been deregu-

lated, opportunities to work with new operators will be presented while the

interest in strengthening competitiveness through effective maintenance

will increase further among current operators.

EuroMaint Rail's biggest growth opportunities exist outside Sweden,

however, which are being boosted by the continuing deregulation of the

railway markets within the EU. Prioritised growth markets for EuroMaint Rail

are the Nordic countries, Germany and the Baltic states. During the year, the

company opened its first workshop outside Sweden – in Jelgava in Latvia.

EuroMaint Industry is also seeking customers outside Sweden in order

to utilise its knowledge in other markets. EuroMaint Industry signed an

agreement with Volvo Powertrain in March regarding the delivery of equip-

ment for quality assurance to the company's engine factories in Brazil,

France, Sweden and the USA. The framework agreement is an important

step into the international market and constitutes the biggest deal to date for

EuroMaint Industry. A contract has also been signed with Tata-Cummins

regarding the delivery of comparable equipment to an engine factory in India.

New industriesEuroMaint has a strong position in the rail transport industry and is growing

within the engineering industry. The operational takeover from Stora Enso

in Norrsundet during 2008 means that EuroMaint has established itself in

a new industry – the paper and pulp industry.

EuroMaint's goal is to establish the company in new industries where

the Group's structural capital can contribute to increased efficiency and

quality in maintenance operations. Examples of such industries are the process

and energy industries, as well as defence, which are faced with structural

changes similar to those that the rail transport industry has undergone.

10

EUROMAINT'S OFFERING

The utilisation ratio of production equipment in the Swedish engineering

industry amounts to approximately 50 per cent on average. Within the paper

and pulp industry, the availability requirements are traditionally higher. Halts

in production are very costly and there is a great deal of dependence on

equipment that is very expensive to purchase. For the rail transport industry,

the availability is directly linked to customer needs – the availability require-

ment for rolling stock has increased further in recent years as traffic has

increased.

Experience and proximityEuroMaint's two subsidiaries originate from Swedish train operator SJ

and Volvo. EuroMaint, formerly SJ's machine division, was formed in 2001 in

connection with the corporatisation of Swedish State Railways. In 2005

EuroMaint acquired Euromation – one of Sweden's leading companies

within production streamlining for the engineering industry. The Group

has more than 150 years' experience of services for improving the efficiency

of advanced production equipment. The geographical proximity to customers

is also a competitive advantage, EuroMaint is currently present in 15 locations

in Sweden and in Detroit, USA and Jelgava, Latvia. Through its size and

experience, the Group has the qualified technical expertise with a unique

combination of both breadth and depth.

EuroMaint Rail offers many different types of services, from action-

based corrective maintenance, refurbishments and component processing

to the design of maintenance systems. EuroMaint Industry has a wide range

of services from corrective maintenance and maintenance to the design of

customised production equipment.

EuroMaint's services are designed to increase the availability, reliability

and working life of advanced production equipment and their components.

With EuroMaint's services, customers can attain a better utilisation ratio and

operational reliability in production.

Future prospects during recessionThe market for services that support the effective use of advanced production

equipment is somewhat less cyclical than the customers' market. In times of

economic growth, the customer's primary motivation is to increase the avail-

ability and operational reliability of existing equipment. During a slowdown,

the focus is mainly on the possibility of extending the working life of production

equipment and the potential to postpone new investments.

The Group expects that the market for technical maintenance services

will continue to grow in the coming years. Admittedly, in the recession that

began in large parts of the world during 2008, it is expected that the need

for more efficient use of production equipment will be lower than during

economic growth, but the existing equipment must be maintained and

falling demand means that the demands on quality delivery and stability

remain high.

In a recession, fewer decisions are taken regarding the purchase of new

equipment, which makes EuroMaint's offering to streamline existing equip-

ment appealing. The current economic climate also opens up opportunities

for further structural deals and business acquisitions as companies review

their costs while looking to secure access to key skills.

The downturn in the rail transport sector is expected to be less than for

the industry. Passenger transport by rail continues to increase, partly due to

increasing environmental awareness and since train travel can be a cheaper

option than flying. Freight transport decreases in keeping with declining

industrial demand, but even here there are environmental benefits that are

advantageous to the railways.

EuroMaint strengthens its customers competitiveness via services that increase the availability, operational reliability and working life of production equipment and components.

Services that support the effective use of advanced production equipment

11

Refurbishment of SJ's passenger carriagesEuroMaint Rail's refurbishment expertise is being

utilised for example by Swedish train operator SJ,

for whom the company is refurbishing its passenger

carriages from the 1980s (the so-called InterCity

trains). SJ is investing SEK 350 million to modernise

the trains which will have a new exterior profile as

well as a brighter Scandi navian decor with new

lighting in the carriages. EuroMaint Rail's refurbish-

ment commission is contributing to an extension of

the economic and commercial life and value of the

rolling stock. It is also raising the level of comfort

for SJ's customers and improving the working

environment for the onboard staff.

Takeover of operations from HusqvarnaOn 1 January 2009, EuroMaint Industry acquired

64 employees within production equipment main-

tenance and the production of die casting tools

from Husqvarna. This operational takover means

that Husqvarna can focus on its core competence

while maintaining key competence in connection

with its production facility in Huskvarna, Sweden.

EuroMaint Industry is driving and developing the

business forward, thereby ensuring efficient,

flexible maintenance operations for Husqvarna

and other engineering companies in the region.

12

EUROMAINT'S OFFERING

Turnkey service for the A-TrainA-Train, which operates the Arlanda Express

airport railway in Stockholm, Sweden, has awarded

EuroMaint Rail a comprehensive commission in

which the maintenance arrangement and reimburse-

ment is based on the customer's rolling stock

fleet being available for service. EuroMaint Rail

has taken over the operation of the maintenance

activity, which includes everything from manag-

ing the action-based corrective maintenance to

further development of the maintenance systems.

EuroMaint contributes with proactive maintenance

that guarantees high reliability and Sweden's highest

level of availability – 100 per cent availability for the

Arlanda Express.

Framework agreement with SSAB EuroMaint Industry's Group framework agreement

with SSAB regarding the service and refurbishment

of electric motors means that SSAB has access to

EuroMaint's experience and competence within the

component service. Through qualified reprocessing

of electric motors, the working life of the components

is extended, the customer avoids making new

investments and guarantees access to components

that are sometimes no longer standard.

13

Subsidiaries

14

EUROMAINT INDUSTRY – IN BRIEF

EuroMaint Industry is an independent partner that strengthens the industry's competitiveness by streamlining production. The Company develops and maintains production equipment, components and processes within the industry.

An independent partner that strengthens the industry's competitiveness

Through customised maintenance services, EuroMaint Industry helps

customers to increase the efficiency, durability and reliability of the production

process. The company's experienced production engineers, project managers

and designers offer the development, design and manufacture of customised

production equipment. Reliable solutions for changes to production processes

are also offered. With the component service, maintenance is supported by

spare parts, troubleshooting and repairs.

EuroMaint Industry's turnover increased by 34 per cent to SEK 363

million in 2008. The company has 300 employees. The head office is in

Skövde and operations are also carried out in Gävle, Gothenburg, Hallsberg,

Huskvarna and Åmål, Sweden, as well as in Detroit in the USA. EuroMaint

Industry has been part of EuroMaint since 2005 and originated with the Volvo

Group's sell-off of its maintenance operations in 2000.

■ Vision To be the industry's leading partner for efficient production.

■ Business concept To develope and maintain production equipment, components

and processes within the industry.

KEY FIGURES EUROMAINT INDUSTRY 2008 2007 2006

Turnover, SEK million 363 271 231

Operating profit, SEK million 13 0 -8

Cash flow, SEK million -14 -15 -27

Operating margin, % 3.6 0 negative


Average no. of employees 289 261 281


TURNOVER, SEK million OPERATING PROFIT, SEK million


2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

2004 2005 2006 2007 2008

363

303

307

231

271 13

25

11

0

-8

-14

-15

-27

42

-30

150

100

200

250

300

350

400

-10

-15

0

10

15

20

25

-10

-20

-30

0

10

20

30

40

15

As of 1 January 2009, EuroMaint Industry has also been established

in the Småland region through the takeover of Husqvarna's maintenance

and tool departments. On the one hand, this gives us a local presence as well

as new competence within the maintenance and service of die casting tools.

Within the Automation business area, we have had the goals of

expanding abroad during the year as well as expanding industrially with

our special offering. In line with this ambition, we signed the largest contract

in EuroMaint Industry's history during the year; a framework agreement

worth SEK 150 million with Volvo Powertrain. The deal involves the supply

of IPV equipment (In Process Verification) to the company's factories in

Brazil, France, Sweden and the USA. Through the new IPV technology,

we can help customers to quality assure, environmentally improve and

cost-optimise their production processes.

During the year, we have noted an increased level of interest in

supplying and reprocessing existing components in order to maintain

the value of the investments made.

Within mechanical processing, we have undertaken industrial

diversification through assignments, which included the Norwegian

offshore industry.

Focus on customer needs in 2009EuroMaint Industry has solid foundations to stand on, a clear strategy and

focused and committed employees. We have taken some very important

steps in the company's development during the year.

The coming year will be marked by the recession and the increased

demands placed on us as a supplier. We will meet the challenge thanks

to sound knowledge in our areas of activity, combined with the creative

ability to adapt our offerings to customers' needs. We will manage the

recession through sustained delivery capabilities while developing our

skills so that we have consolidated our position as a strong partner for

when economic growth resumes.

We will also continue working to identify possible businesses for

acquisition in 2009.

Every day, I am heartened by the spirit, creativity and flexibility shown

by the employees in our organisation. The unique needs of our customers

are always at the forefront and that is the key to our future success.

Nicklas Falk, CEO EuroMaint Industry

During 2008, EuroMaint Industry's turnover increased by 34 per cent and

our profit has improved from SEK 0 to SEK 13 million.

Our vision is to be the leading partner for industrial companies that

want to streamline the use of their production resources. We can achieve

this thanks to efficient processes and the sound skills, involvement and

commitment of our employees.

During 2008, we have successfully achieved our strategic targets to:

• Expandourselvesindustrially

• ExpandgeographicallytoprioritisedindustryclustersinSweden

• Growthroughtheacquisitionofoperations

• PackagingourofferingwithintheAutomationandComponentServicing

business areas based on customer needs

This means that we have developed in line with our vision to become the

industry's leading partner for efficient production, which is very satisfying.

Strategically important milestonesWith the takeover of Stora Enso's operations in Norrsundet, Sweden,

we have established ourselves as a partner to the paper and pulp industry,

and increased our presence in the industry cluster in the Gävle region.

The addition of Norrsundet is an important element in our company's

growth ambitions regarding industrial diversification.

EUROMAINT INDUSTRY – THE CEO'S COMMENTS

EuroMaint Industry can look back on a successful year, winning several important business deals, expanding into new industries and markets, and having achieved our financial goals by a good margin. I am so very proud of the work being carried out within the company.

"I am so very proud of the work being carried out within the company"

16

EUROMAINT INDUSTRY – BUSINESS CONCEPT, VISION, STRATEGY AND OFFERING

EuroMaint Industry's vision is to be the industry's leading partner for efficient production. This means that the company should be a driving and developing player within its niche, have a significant market share and be a complete partner in the development and mainten-ance of production equipment, components and processes. EuroMaint Industry strives for long-term partnerships in which the company supports the customer in its development.

A leading partner for the industry

EuroMaint Industry's offering includes the maintenance of production

equipment, the improvement of production and maintenance routines,

the manufacture of production equipment and tools, plus the repair of

components and tools. Since 2008, operations have been run within

three interacting business areas with their own budget responsibility:

Engineering & Operational Reliability, Automation and Component Servicing.

Growth strategiesEuroMaint Industry's comprehensive growth strategy includes organic

growth mainly through commissions for new and existing customers within

industry in Sweden. Operational takeovers and company acquisitions are

also part of the company's growth strategy. The focus is primarily on

customers within the engineering, foodstuffs, timber, packaging, steel,

paper and pulp, energy and offshore industries.

The company should be a natural partner for companies that need to

streamline or change their production and can, thanks to its broad expertise,

be a leading advisor in the conversion of production. EuroMaint Industry

also has a goal of increasing the number of key customers.

EuroMaint Industry's overall goals are to:

• Increasethenumberofcustomersandstabledeals

• Bewell-positionedgeographically,withproximitytocustomers

• Increaseturnoverandprofitabilitywithevencoverage

• Maintainanddevelophigh,broadandflexiblecompetence

• Offerhighservicelevelsandquality

Be nearer to the customerFor maintenance operations, the focus is to continue the regional expansion

into selected locations in Sweden. This means getting closer to the customer

and being in strategically important regions such as Gävle, Hallsberg/Örebro,

Skövde, Gothenburg and Småland.

The takeover of Stora Enso's operations in Norrsundet in 2008 means

that the presence in Gävle has been strengthened in a strategically important

manner. The takeover means that EuroMaint Industry contributes to reliable

operations during the termination phase of the pulp mill. Around twenty

employees have transferred to EuroMaint Industry in association with

the deal and after the pulp mill has been closed down, the employees will

strengthen the company in the Gävle region and be able to work with other

industrial customers in the region.

During 2008, EuroMaint Industry has also established its first operations

in Gothenburg.

From 1 January 2009, EuroMaint Industry has also been present in

Huskvarna in Småland through the acquisition of 64 people from Husqvarna

who are working with the maintenance of production equipment and the

production of die casting tools.

An established supplier of special machinesEuroMaint Industry is a strong and established supplier of special machines,

primarily to the automotive industry. The goal is to establish itself as a supplier

to other industries in Sweden and to expand internationally through specialist

competence within the automotive industry. The international expansions

taking place partly through the Automation business area accompanying its

Swedish customers to their production facilities overseas, and partly through

the development of new customer groups abroad. Employees in Detroit are

leading the activities in the U.S. market. In order to expand in the European

market, EuroMaint Industry has been aided by the Swedish Trade Council

and others.

Within Automation, EuroMaint Industry has an important competitive

advantage through its broad competence. Among other things, the company

is working with equipment from all machine suppliers and can offer specialised

technologies such as IPV technology, In Process Verification, which is only

offered by a few suppliers around the world. In 2008, EuroMaint Industry

signed a global framework agreement with Volvo Powertrain regarding IPV

technology. The deal is valued at approximately SEK 150 million and is the

biggest to date in the company's history.

New production and reprocessingEuroMaint Industry also offers the new production of advanced mechanical

components. The Component Servicing business area also works with the

reprocessing of mechanical, electronic and technical components where

economies of scale and specialist skills are important competitive advantages.

Success factors are continuously improving delivery capability, trimming

internal processes, developing staff skills and strengthening relations with

so-called OEMs, Original Equipment Manufacturers, such as suppliers of

control systems.

EUROMAINT INDUSTRY'S OFFERING:

■ Development and maintenance of production processes

through methods and approaches for, e.g. process conversion,

new acquisition and maintenance. The goal is for the customer

to have undisrupted production, high operational reliability,

delivery accuracy and customer satisfaction.

■ Development and design of customised production equipment

Standard solutions are not always the best alternative. EuroMaint

Industry designs special equipment with high operational

reliability, based on the customer's unique needs. These include

flexible Automatic Guided Vehicles, AGV, which are an effective

tool during mounting applications, for example, or IPV, In Process

Verification.

■ From quick access to spare parts, troubleshooting and repairs

to the reprocessing of components. EuroMaint Industry helps

customers maintain the value of their production equipment.

The customer can also focus on their core business and avoid

capital tied-up in spare parts stock.

17

18

A large proportion of Swedish industrial companies maintenance and

production efficiency is still conducted internally. Large industrial companies

traditionally have a maintenance department in charge of the availability of

the production equipment.

In order to focus exclusively on its core business, many companies are

considering the corporatisation of their maintenance departments and,

in some cases, outsourcing them to external suppliers. The advantage of

placing the maintenance department with an outside company is that the

operational efficiency is stimulated with the introduction of a partner

relationship. Tougher competition in the industry means that more

companies are considering whether to transfer maintenance work to

someone else, but there is also great awareness that this requires a well

developed strategy in order for the outsourcing to pay dividends. The

demands on EuroMaint Industry are very high with regards to the takeover

of operations.

The suppliers in the maintenance market for industry can be roughly divided into four groups:

■ Volume suppliers – relatively large companies with a wide range of services.

These companies are price competitive and their services are not

industry specific.

■ Niche players – companies that position themselves through a unique

offering such as one product, service or competence area. For these

suppliers, customer proximity is important, the range is slightly smaller

than for volume suppliers and value creation for customers is the main

competitive tool. EuroMaint Industry belongs to this group.

■ Industry players – companies operating in a particular sector or industry

that create value through the highly specific skills they possess. Within this

group are companies with a combination of volume and niche strategies.

■ OEM companies, Original Equipment Manufacturers – manufacturers of

production facilities that also offer aftermarket services.

Part of a maintenance groupIn many ways, EuroMaint Industry is a unique player in this market. The

company is part of a maintenance group, which provides access to specialist

competence, proven processes and work methods and the ability to make

the investments necessary to always be able to offer a customised, innovative

and professional partnership.

EuroMaint Industry is an independent and comprehensive partner for

the development and maintenance of production equipment, components

and processes. The company offers technical breadth and specialist compe-

tence from long-term complete solutions to smaller part actions. Everything

from maintaining and developing production equipment, designing efficient

production equipment to providing new and existing machines with compo-

nents. In this way, EuroMaint Industry’s customers can reduce their capital

tied-up and focus on their core competence.

Active on the consolidation marketThe market for maintenance and production efficiency in Sweden is moving

towards consolidation. There are examples of major maintenance suppliers

in Sweden who have grown through the acquisitions of smaller, local suppliers.

EuroMaint Industry's business consists largely of operations taken over from

AB Volvo and Volvo Trucks.

EuroMaint Industry intends to be active in this process and is considering

acquisitions in order to grow and develop. Within the Engineering & Operational

Reliability business area, this primarily taking over existing operations from

industrial companies. For the Component Servicing business area, this could

be the acquisition of smaller companies facing a generational change of

ownership.

Customers in Sweden and abroadEuroMaint Industry's commissions are increasingly characterised by long-

term turnkey commitments. Customers are mostly industrial companies in

Sweden. Some examples are Arkivator, DIAB, Scania, Stora Enso, AB Volvo

and Volvo Cars. In the USA, Volvo Powertrain is the largest single customer.

During 2008, an important step was taken into the international market in

connection with an extensive framework agreement for IPV equipment,

In Process Verification, to Volvo Powertrain in several different countries.

EUROMAINT INDUSTRY – MARKET AND CUSTOMERS

Industrial production is becoming more and more automated, creating a greater demand for EuroMaint Industry's services. The market that EuroMaint Industry operates in is fragmented with several different types of players.

Unique supplier to a changing market

19

EUROMAINT INDUSTRY – EXAMPLES OF COMMISSIONS IN 2008

Framework agreement worth approx SEK 150 millionDuring 2008, EuroMaint Industry entered its

biggest framework agreement to date, valued at

approximately SEK 150 million. The deal comprises

the supply of equipment for quality assurance to

Volvo Powertrain in Brazil, France, Sweden and the

USA. The new technology, In Process Verification,

IPV, is used for the cold testing of engines and

means that the product is successively verified

throughout the production process. The improved

quality control means that costs for deficient quality

can be reduced significantly. Furthermore, Volvo

Powertrain reduces its emissions by 85 per cent

during engine trials.

The deal means a boost on the international

market while providing new jobs at home.

Takeover of operations in HuskvarnaIn October 2008, EuroMaint Industry signed

a letter of intent to acquire the mainten ance

and tool operations at Husqvarna's facility in

Huskvarna, Sweden. From 1 January, the opera-

tions together with 64 employees have been part

of the EuroMaint Group.

The operations in Huskvarna are focused on the

maintenance of processing machinery, die casting

machines and assembly equipment, maintenance

and tool services, as well as manufacturing that

includes die casting tools.

The establishment in Huskvarna provides

EuroMaint Industry with an important platform for

continued growth in Småland, which is an important

market with its many engineering companies.

Maintenance at Stora Enso's factories Since the summer of 2008, EuroMaint Industry

has had a local office in Norrsundet outside Gävle,

Sweden. The company has taken over the main-

tenance of Stora Enso's pulp mill. A service and

maintenance operation has been established in

Stora Enso's premises in Norrsundet and around

20 employees have a new employer.

EuroMaint Industry has been established

in the Gävle region since 2007 and has rapidly

established a large demand for services in mainten-

ance and production. Agreements with Forsmark,

Sandvik Materials Technology, and others had been

in place before then. The operations in Norrsundet

are an important piece of the puzzle in the

company's growth ambitions in the region.

20

EUROMAINT RAIL – IN BRIEF

EuroMaint Rail offers cost-effective maintenance solutions and the refurbishment of all types of vehicles in the rail transport industry. Through efficient and innovative maintenance, EuroMaint Rail creates possibilities for punctual and safe transport.

Cost-effective maintenance solutions for rolling stock

EuroMaint Rail assumes the overall responsibility for train maintenance and

rolling stock availability via availability contracts, which means that customers

have control over maintenance costs and can focus on their core business.

The availability of trains is becoming increasingly critical, which is why the

maintenance concept is focused on achieving the shortest possible downtime.

EuroMaint Rail's refurbishment services contribute to increased comfort,

longer working life and reduced maintenance costs for customers. EuroMaint

Rail also has the industry's most complete systems for material provision.

Lengthy experience of train maintenanceEuroMaint was formed in 2001 with more than 100 years' experience of

qualified maintenance from its origins within the Swedish State Railway.

Sweden's top specialists in the maintenance of rolling stock work within

EuroMaint Rail.

Operations are conducted in four interacting business areas:

Availability, Components, Refurbishment and Work Machines (previously

EuroMaint Tracksupport). EuroMaint Rail has approximately 1,450 employees

and had net sales of SEK 1,987 million (1,825) in 2008. The head office is in

Solna. The company has operations in 13 additional locations in Sweden,

and since 2008, in Jelgava in Latvia.

■ Business concept To strengthen the rail transport industry's competitiveness through

customised and innovative maintenance concepts.

KEY FIGURES EUROMAINT RAIL 2008 2007 2006

Turnover, SEK million 1,987 1,825 1,818

Operating profit, SEK million 87 63 108

Cash flow, SEK million 134 2 73

Operating margin, % 4 3 6


Average no. of employees 1,472 1,510 1,456


TURNOVER, SEK million

1,98

7

1,49

3

1,71

0 1,81

8

1,82

5OPERATING PROFIT, SEK million

87100

47

63

108


2004 2005 2006 2007 2008 2004 2005 2006 2007 2008

2004 2005 2006 2007 2008

134

-19

14

73

2

1,000

800

1,200

1,400

1,600

1,800

2,000

40

20

60

80

100

120

140

25

0

-25

50

75

100

125

150

2007 and 2008 include EuroMaint Tracksupport AB.

21

Clearer responsibilities and better planning Improving the way we measure and monitor the maintenance work and

creating an environment that promotes initiative and a focus on results

in the organisation has been high on my agenda since I took over.

We have improved our way of measuring activity by developing our

own key indicators and decentralising budgetary responsibility in order to

increase the quality and results focus at the front line, where our organi-

sation delivers and meets our customers.

High demands in 2009Great demands will be placed on the organisation in 2009. Competition

is increasing with more foreign suppliers in Sweden and we must become

even better at measuring and streamlining our internal processes, and

deliver the best quality to our customers. During the first quarter, several

new agreements must be signed, including those for the maintenance of SJ's

high-speed X2 trains and Swedish train operator Green Cargo's locomotives

and carriages. There are major deals and contracts among fierce competition.

The recession is naturally affecting the railway market and therefore

EuroMaint Rail, as well as other suppliers. It was mostly our customers

within freight transport that experienced a decline in 2008. For passenger

transport, the trend to some extent is in the opposite direction. More and

more people choose to travel by train, both for the sake of the environment

and for economic reasons. A recession does not mean that the mainten-

ance of trains and railway infrastructure can be postponed. Maintenance

must be done with the aim of prevention and refurbishment in order for

traffic to move as planned, with continued high quality and safety.

Ready for international expansionOver the last decade, the rail market in Sweden and Europe has changed

enormously towards a "normal" commercial market. All players have an

increased customer focus and a greater cost awareness. EuroMaint Rail

has come a long way in a short time and has developed into a profitable

company that operates in an almost entirely deregulated market. We

now have to continue along the path towards ever-higher quality, shorter

throughput times, reduction of capital tied-up, lower costs and even

greater professionalism. Our focus is to create the stability that provides

the conditions for profitability and growth. With this as a basis, we are

ready to seriously begin entering markets outside Sweden.

Mats Önner, CEO EuroMaint Rail

EuroMaint Rail has surpassed its turnover target – an increase of 8.9

per cent to SEK 1,987 million – however, despite a substantial increase

from the year before, it failed to achieve the profit targets in 2008. With

the good results we have seen over the last few months of the year, I am

convinced that there is great potential for even stronger results to come.

Renewed ordersAmong the renewed orders we have received during the year is the renewed

order from Swedish train operator SJ, when the contract for the mainten-

ance of the high-speed X2-train and a large number of passenger carriages

was extended by one year in May. Ahead of the new negotiations in 2009,

together with the client we have developed new key indicators for the

adequate measurement of maintenance in the future. SJ has also demon-

strated its confidence in us with the modernisation of 160 passenger

carriages for the so-called InterCity train.

Our partnership with local commuter train operator Stockholmståg

has worked well during the year. Availability of commuter trains in Stockholm

has increased steadily, despite some teething problems with the new

X60 train. By the end of the year, we were putting 160 trains into service

each morning.

EUROMAINT RAIL – THE CEO'S COMMENTS

EuroMaint Rail is a company with great potential, and competent and loyal employees. This picture has become clear to me since I took over as CEO in September. 2008 was a year that was characterised by great pressure from outside, with the renegotiation of several important contracts and internal challenges in terms of efficiency and long-term quality assurance.

"Stability, profitability, growth"

22

EUROMAINT RAIL – BUSINESS CONCEPT, VISION AND STRATEGY

EuroMaint Rail's business concept is to strengthen the rail transport industry's competitiveness through customised and innovative maintenance concepts and attractive and efficient refurbishments of rolling stock and their components.

Strengthening the rail transport industry's competitiveness

The company's vision is to be Europe's leading maintenance provider that

offers qualified maintenance services for all parts of the rail transport industry.

The company strengthens its customers' competitiveness by providing

concept development of maintenance and technical solutions, turnkey

maintenance contracts, as well as component servicing and qualified

refurbishments. EuroMaint Rail is working toward long-term partnerships.

Stability, profitability, growthAchieving stability, profitability and growth are the overall goals that

EuroMaint Rail focuses on in its operations.

EuroMaint Rail's strategies for growth involve creating the conditions

for new and extended assignments from customers in Sweden, and for inter-

national expansion to selected markets, such as the Baltic states, Denmark,

Norway and Germany. All growth takes place while maintaining profitability.

In order to create the best possible conditions for this expansion,

EuroMaint Rail must achieve stability in its business, which means that the

company's stakeholders know what to expect in every situation, in terms of

quality, delivery accuracy, work processes and financial performance.

In 2008, several major steps have been taken to improve stability.

A systematic HR programme has begun to develop leadership, clarify career

pathways and to safeguard the competence within the company. Through the

new unit, Rail Production System, RPS, Lean Production is being introduced

throughout the business. New management and governance procedures

mean that each workshop and each team can monitor their own activities.

Material control and production have improved, the capital tied-up has been

reduced and the focus on additional sales and customer value has increased.

23

Effective train maintenance is essential for a punctual and safe service.

EuroMaint Rail strengthens the rail transport industry's competitiveness by

offering operators and vehicle owners optimised maintenance that provides

increased transport safety, higher vehicle availability and better punctuality.

Through long experience and deep expertise, EuroMaint Rail can adapt its

offering according to customers' different needs.

AvailabilityFor EuroMaint Rail's customers, vehicle availability is a decisive success

factor. EuroMaint Rail's ambition is to offer maintenance, with maximum

possible availability. This means that the company offers, for example,

operational-pause based and split-based maintenance, i.e. the maintenance

is divided up and performed when the vehicles have maintenance planned

according to a schedule.

Some customers still prefer so-called action-based maintenance, especially

within the smaller partnership contracts. Action-based maintenance means

that the customer pays for each action carried out, instead of handing over

full responsibility for the maintenance to EuroMaint Rail. Action-based main-

tenance requires more input from the customer and makes it more difficult

to calculate the cost of maintenance.

EuroMaint Rails maintenance of rolling stock is increasingly governed

by contracts that are based on the customer paying for the number of kilo-

meters that the vehicles are available. Kilometer-based maintenance means

that the customer knows in advance what the maintenance costs will be to

operate the vehicles over a certain number of kilometers. EuroMaint Rail

takes full responsibility for the availability and the customer need not devote

resources to anticipating and planning maintenance, and can focus on their

core business instead.

The main proposal is availability contracts, where EuroMaint Rail is

responsible for maintaining the entire vehicle fleet and works actively with

technical analyses of vehicles and vehicle systems in order to offer opportunities

for customers to reduce the overall lifetime cost and increase reliability.

Kilometer-based maintenance requires extensive knowledge of the

expected maintenance for different types of vehicles. Customers benefit from

EuroMaint Rail's lengthy experience and great knowledge of the majority of

vehicles within the rail transport industry.

With workshops at strategic locations and mobile maintenance and

troubleshooting teams throughout the country, EuroMaint Rail can guarantee

maximum availability.

Refurbishment improves comfort, performance and safetyWithin the area of refurbishment, EuroMaint Rail is a complete partner that

can raise vehicle performance, enhance comfort, update designs, extend

working life, reduce future maintenance costs and increase the vehicles'

value. In this way, EuroMaint Rail contributes towards strengthening

customers' competitiveness.

EuroMaint Rail works in close cooperation with the customer in every

refurbishment commission. Alliances with strategic partners and cooperation

with local suppliers complement the company's core skills and contribute to

the overall offering. EuroMaint Rail assumes overall responsibility for both

large and small refurbishment projects.

Wide range of spare parts and componentsIn EuroMaint Rail's workshops, the reprocessing of components is carried

out as a competitive alternative to new purchases.

With more than 60,000 items in stock, EuroMaint Rail has Swedens

widest range of spare parts for the rail transport industry. With a central

warehouse in the middle of Sweden and local workshop assortments, the

company ensures minimal downtime for trains that are being maintained.

Material management and logistics systems are adapted to the rail transport

industry. EuroMaint Rail has an extensive network of subcontractors and is

working constantly to develop both supply channels and product ranges for

the lowest possible cost and highest level of delivery accuracy. EuroMaint

Rail can also take over responsibility for the customer's stock and combine

that with their resources within storage and logistics.

Customised maintenance of work machinesSince 2008, the former subsidiary EuroMaint Tracksupport has been part

of EuroMaint Rail as a separate business area. EuroMaint Rail offers the

customised maintenance of track-mounted work machines and hydraulic

equipment. Through advanced function and product knowledge, field service

and business acumen, EuroMaint Rail will also enhance customers' competi-

tiveness in this area.

Customer focused organisationThe organisation is customer focused and works with quality assured

processes that guarantee documentation, monitoring and delivery quality.

With workshops scattered throughout Sweden, EuroMaint Rail can

adapt maintenance solutions to each individual operator or vehicle owner,

and to each train's timetable. The key areas in Sweden are the areas with

growth in passenger traffic, such as Mälardalen, Västra Götaland and Skåne,

and in places that form the hub for freight services, mainly Luleå, Borlänge,

Hallsberg,Gothenburg and Malmö.

EUROMAINT RAIL – OFFERING

EuroMaint Rail offers comprehensive maintenance solutions to the entire rail transport industry. The company is Sweden's leading supplier of maintenance solutions and refurbishments and manages all types of rolling stock and their components.

Comprehensive maintenance solutions for the rail transport industry

24

EUROMAINT RAIL – MARKET AND CUSTOMERS

The rail industry in Sweden and Europe is changing. More players are establishing themselves on the Swedish market, which means that competition is intensifying. At the same time, Sweden and large parts of the world are in a recession. The tougher market conditions present a challenge, but they can also be something that can spur EuroMaint Rail to deliver the highest quality in all areas.

Tough competition in a changing market

The Swedish economy decelerated sharply towards the end of 2008, leading

to downward revised forecasts for both growth and employment in Sweden.

Both personal travel and freight transport by rail has increased steadily during

the past five years. The declining economic situation in 2008 has negatively

affected freight traffic as the demand for freight transport has declined.

Passenger transport has resisted the downturn better so far, thanks to price

and environmental awareness meaning that many people are choosing the

train over alternative methods of transport.

The increase in traffic that has characterised the last five years has led to

increasing demands on vehicle availability, which means that the capacity of

trains needs to be utilised as much as possible. Therefore, the maintenance

need for rolling stock in passenger transport has increased in recent years.

The market for EuroMaint Rail is expected to be less affected by the recession

than many other industries.

EuroMaint Rail's market share in terms of the maintenance of rolling

stock in Sweden amounts to nearly 50 per cent.

New conditions for Sweden's railwaysRail passenger traffic in Sweden is managed by a number of different operators.

Today there are around 40 operators within rail transport in Sweden and

that number is expected to increase in the coming years. Swedish train

operator SJ has a unique position with a market share of approximately

40 per cent of the total rail transport market. Up to and including 2008, SJ

has had exclusive rights to profitable inter-regional rail transport in Sweden.

On 1 January 2010, Sweden's railways are likely to be deregulated further

when the Swedish rail network opens up to competition.

Examples of international rail operators that are active in Sweden:

The British operators Arriva and First Group; the French companies Keolis

and Veolia Transport (formerly Connex), Germany's DB, Norway's NSB and

the Danish operator DSB.

In many European countries today, companies are competing to carry

out passenger transport. However, these are mainly for services procured

by the community, while the market for commercial passenger transport is

largely closed to everyone but the national railway companies. The deregulation

of the railways is at various stages in Europe. Sweden and the UK are the two

countries that have come furthest.

Freight transport in Sweden is conveyed on the main network by the

state-run train operator Green Cargo, which is one of EuroMaint Rail's

biggest customers. On the smaller networks, there are a number of private

operators.

Investigation on the future of passenger transportIn 2007, the Swedish government appointed a second railway investigation,

which has been tasked to propose ways to increase competition between

commercial operators in the rail passenger transport market. The investigation

submitted its report in October 2008, with the primary conclusion that SJ's

exclusive transportation right should be abolished. The overall objective

of the study was that passengers and society will receive greater benefit

through more choice, affordable travel and a greater offering. The second

railway investigation also proposed that further market opening should take

place concurrently with the relevant international passenger services within

the EU. ("Konkurrens på spåret", Järnvägsutredningen 2, SOU 2008:92)

Transport chief

Property owners

Passengers

Freight

Infrastructure

Authorities

Market

Condition

25

RAIL TRANSPORT INDUSTRY SUPPLIERS

The rail industry in Sweden consists of several suppliers who cooperate

to provide the best possible transport for passengers and freight.

■ Infrastructure – The Swedish Rail Administration (Banverket),

with sector responsibility for the railways, is responsible for

infrastructure, including the responsibility for operation and

management of the tracks, and for coordinating local, regional

and inter-regional railway traffic.

■ Condition – The Swedish Transport Agency's railway department

(previously the Railway Board) issues licenses for rail transport

operators and approves technical subsystems.

■ Transport chief – A number of players responsible for public

transport's performance in a county or nationally under Swedish

management.

■ Operator – There are about 40 operators of railway services in

Sweden. SJ is the largest in passenger transport and Green Cargo

dominate freight transport.

■ Vehicle owner – Vehicles can be leased from train leasing

companies such as the UK's Angel Trains or from Swedish Transitio.

■ Vehicle manufacturer – There are a few major manufacturers of

rolling stock. These suppliers are also increasingly seeking the

maintenance and repair of delivered vehicles .

■ Property owners – State run Jernhusen develops, manages and

owns stations and workshop areas related to the railways in

Sweden. The vast majority of premises where EuroMaint Rail has

workshops are owned by Jernhusen.

■ Maintenance company – A number of suppliers specialising in

the maintenance of rolling-stock. EuroMaint Rail is the leading

supplier in Sweden.

■ Refurbishment company – Vehicle manufacturers and a number

of other suppliers offer the refurbishment of vehicles. EuroMaint

Rail offers refurbishment and maintenance.

New demands on maintenance operationsIn addition to the market changes occuring as a result of changed regulations

on the market, EuroMaint Rail continues to examine important market trends:

• Operatorsaremovingforwardinthevaluechainandfocusingontheir

core business. To an increasing extent, they are handing the responsibility

for maintenance to specialist providers such as EuroMaint Rail.

• Requirementsfromcustomersareincreasing,withregardtowhenand

where maintenance should be carried out. Increased demand within rail

transport means that the vehicles must be more and more available,

meaning that maintenance must be carried out on-site and during off-peak

periods such as at weekends and during the night.

Swedish and foreign customers and competitorsEuroMaint Rail's biggest customers are: Banverket, Green Cargo, SJ,

Stockholmståg and TKAB. The foreign customers are notably Arriva, DSB,

NSB and Veolia.

Competitors in Sweden can be divided into three categories:

• Traditionalrailwayadministratorsandoperatorswhocarryout

maintenance in-house

• Independentmaintenanceprovidersthatalsoworkwithinotherindustries

• Vehiclemanufacturers

Operator Vehicle owner Vehicle manufacturer

Maintenance company Refurbishment company

26

EUROMAINT RAIL – EXAMPLES OF COMMISSIONS IN 2008

Extension of agreement with SJThe contract for the maintenance of SJ's 40 X2

trains, 450 passenger carriages and more than

100 RC locomotives was extended by one year in

June 2008. During the period until the next nego-

tiation takes place, SJ and EuroMaint Rail will work

together to develop new indicators for monitoring

maintenance work. The high-speed X2 trains within

SJ are between 10 and 20 years old and the need

for more extensive maintenance will increase as

the trains become older.

Seven-year contract with AAEDuring 2008, EuroMaint Rail strengthened its

partnership with Swiss AAE by signing a seven-year

contract regarding the maintenance of 300 freight

carriages in service between Luleå and Borlänge,

Sweden.

EuroMaint Rail's substantial experience

and expertise in the maintenance of carriages

was decisive for AAE in its choice of partner.

The maintenance of AAE's carriages will take

place at EuroMaint Rail's workshops in Luleå

and Borlänge and through the use of mobile units.

The agreement is of strategic importance for

EuroMaint Rail, since foreign partners are the key

to future international expansion.

Modernisation of SJ's locomotive drawn passenger carriagesEuroMaint Rail received the commission to

modernise SJ's locomotive drawn passenger

trains from the 1980s. The order is worth

SEK 350 million and the first refurbished carriages

will be put into service in 2009. The modernisation

includes mainly the interior and refreshing the

passenger areas to create a better travel experience.

EuroMaint Rail has previously delivered good quality

in its refurbishment commissions, which was

important for SJ in its choice of supplier.

27

Board and management

28

EUROMAINT BOARD OF DIRECTORS

WILLE LAURÉN1943BSc Economics, Turku School of EconomicsBoard member since 2007Previous employment:CFO ITT AEG Fläktgruppen and Vice President ABB SwedenCurrent employment:Self-employedOther assignments:Moventas AB, Ostnor AB and Nobia AB

KNUT HANSEN1957MSc Engineering, Chalmers University of TechnologyBoard member since 2007Previous employment:Project Engineer, Consafe Engineering, Business Controller Electrolux, President Electrolux Logistics and President of Nordwaggon ABCurrent employment:Head of Logistics, Stora Enso

HENRIK JOELSSON1969MSc Economics, Stockholm School of Economics MBA INSEAD FranceBoard member since 2007Previous employment:Management consultant at Bain & CompanyCurrent employment:Investment Manager, Ratos Other assignments:Board member of Anticimex Holding AB and other companies within the Anticimex Group, Bisnode AB as well as deputy board member of Camfil AB

OLE KJÖRREFJORD1955MBA, Harvard Business SchoolPrevious employment:McKinsey & Company, Stockholm/Los AngelesNorges Eksportråd, New YorkCurrent employment: President and CEO, EuroMaint ABOther assignments:Chairman of the Board of Hector Rail AB, Fleetech AB, Fleet 101 AB, Board member of Korsnäs AB

JONATHAN WALLIS1974MSc Economics, Stockholm School of Economics PhD Stockholm UniversityBoard member since 2007Previous employment:Bain & CompanyCurrent employment:Investment Manager, Ratos

29

PER GRANSTRÖM1964Board member since 2007Previous employment:Euromation AB, Volvo Personvagnar ABCurrent employment:EuroMaint Industry ABOther assignments:Chairman of the Local Union, IF Metall

BERTIL HALLÉN1954Board member since 2001Previous employment:Eriksberg's shipyard and SJCurrent employment:EuroMaint Rail ABOther assignments:Chairman of SEKO Gothenburg,Chairman of SEKO EuroMaint AB,Board member of Göteborgs Hamn AB

KARIN NYBERG1952Board member since 2008Previous employment:SJCurrent employment:EuroMaint Rail ABOther assignments:President TJ (Transport and Railway) Association at EuroMaintBoard member of Sacoförbundet Trafik och Järnväg

30

EuroMaint

EuroMaint Industry

MANAGEMENT GROUP

ARNE MOLANDER1964BSc EconomicsMarketing and Sales DirectorEmployed since 2007

URBAN EKMARK1964MSc Engineering, Technical LicentiatePersonnel, Quality and Environmental DirectorEmployed since 2000

PATRIK SAHLBERG1962BSc EngineeringBAM Automation and Vice President Employed since 1982

MAGNUS LARSSON1979MSc EngineeringBAM Component ServicingEmployed since 2007

ULF SANDÉN1959BSc EconomicsCFO and Vice President Employed since 1989

BO LENNARTSSON1952BSc EngineeringDirector of Training and Technical DevelopmentEmployed since 1973

PATRICK SVENSSON1967MSc Economics, BSc Engineering President EuroMaint Industry, Inc. Business Development DirectorEmployed since 2006

OLE KJÖRREFJORD1955MBAPresident and CEO, EuroMaintEmployed since 2008

HENRIK DAGBERG1972MBA, MSc Engineering Business Development Director EuroMaintEmployed since 2009

NICKLAS FALK1973BSc EngineeringCEO EuroMaint IndustryEmployed since 2003

URBAN FELTH1963MSc EconomicsCFO EuroMaintEmployed since 1984

KIM BERGHÄLL1966BSc EngineeringBAM Engineering & Operational ReliabilityEmployed since 2004

31

EuroMaint Rail

THOMAS ANDERSSON1953MSc EngineeringQuality and Environmental DirectorEmployed since 1991

TRYGVE ENGELBERT1950Ph.DRail Production Systems DirectorEmployed since 2009

STEFAN GREEN1954BSc EngineeringBAM Train RefurbishmentEmployed since 2005

ILONA ÖSTLUND1968MSc EconomicsCorporate Communications Director, EuroMaintEmployed since 2008

JOHAN JANSSON1971Technical college graduateBAM Work MachinesEmployed since 2008

MARK REHNSTRÖM1970BSc Economics and MBAActing CFOEmployed since 2008 (consultant)

MATS ÖNNER1956BSc Engineering and MBAActing BAM AvailabilityEmployed since 2008

INGELA ERLINGHULT1962 BAM ComponentsEmployed since 2009

LENA GELLERHED1968BSc EconomicsHR DirectorEmployed since 2007

MATS ÖNNER1956BSc Engineering and MBACEO EuroMaint Rail Employed since 2008

32

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FINANCIAL SUMMARY

The Group reformed in 2007, with EuroMaint AB as the new parent company,

legally recognised in the management report from 1 September 2007.

The parent company EuroMaint AB, reported legally from formation on

25 April 2007. In order to facilitate the development over time and thereby

create comparability, comparative figures for the new group are reported

and commented on the basis of pro formad figures in the report. The values

originating from the previous EuroMaint AB group are only adjusted for

the rise in interest expenses due to the amended loan situation following the

acquisition. Comparitive values for the 2006 balance sheet and cash flow

key ratios show unpro formad figures for the previous EuroMaint AB Group.

INCOME STATEMENT, SEK million 2008-01-01 2007-01-01 2006-01-01OPERATING INCOME 2008-12-31 2007-12-31* 2006-12-31*

Net turnover 2,316 2,064 2,034

Other operating income 8 3 3

TOTAL OPERATING INCOME 2,324 2,067 2,037

OPERATING EXPENSES

Cost of goods and services sold -835 -671 -610

Other external costs -426 -430 -463

Personnel costs -900 -872 -832

Depreciation -38 -27 -25

Amortisation -4 -2 -2

Other operating expenses -4 0 -5

TOTAL OPERATING EXPENSES -2,206 -2,000 -1,937

OPERATING PROFIT 118 67 100

FINANCIAL ITEMS

Financial income 3 7 3

Financial expenses -87 -86 -71

NET FINANCIAL ITEMS -84 -80 -68

Profit before tax 33 -13 32

Tax -11 5 -5

PROFIT/LOSS FOR THE YEAR 22 -8 27

*Pro forma

BALANCE SHEET, SEK milliom

ASSETS 2008-12-31 2007-12-31 2006-12-31*

FIXED ASSETS

Tangible fixed assets 208 196 131

Intangible fixed assets 706 710 42

Deferred tax assets 10 11 12

Other long-term receivables - - 21

TOTAL FIXED ASSETS 924 917 207

CURRENT ASSETS

Stock 264 280 269

Accounts Receivable 310 345 332

Receivables from Group companies - 2 4

Tax receivables 28 16 -

Other receivables 75 87 48

Completed, not invoiced 194 88 69

Prepaid expenses and accrued income 68 71 54

Cash and cash equivalents 33 - 45

TOTAL CURRENT ASSETS 973 889 821

TOTAL ASSETS 1,897 1,806 1,028

LIABILITIES AND EQUITY 2008-12-31 2007-12-31 2006-12-31*

EQUITY

Share capital 0 0 0

Other contributed capital/statutory reserve 208 208 395

Reserves -6 0 0

Accumulated profit/loss 1 -20 -146

TOTAL EQUITY 203 188 249

LONG-TERM LIABILITIES

Long-term interest bearing liabilities 746 776 270

Shareholder borrowing 244 218 0

Provisions for pensions and

similar obligations 19 35 42

Other provisions 19 16 21

Deferred tax liabilities 13 5 8

Other long-term liabilities 26 - 4

TOTAL LONG-TERM LIABILITIES 1,067 1,050 346

CURRENT LIABILITIES

Advance payment from customers 72 50 36

Accounts payable 236 202 123

Tax liabilities - - 21

Liabilities to Group companies 0 0 6

Liabilities to credit institutions, interest bearing - 23 0

Other short-term liabilities 30 44 12

Accrued liabilities/deferred income 289 250 234

TOTAL CURRENT LIABILITIES 627 568 433

TOTAL LIABILITIES 1,694 1,619 779

TOTAL EQUITY AND LIABILITIES 1,897 1,807 1,028

*Refers to unpro formad figures for EuroMaint AB Group.

www.euromaint.se

EuroMaint AB

SUNDBYBERGLandsvägen 50 A, SE-172 63 Sundbyberg, SwedenVisiting address: Landsvägen 50 A, fl. 5Tel: +46 8-762 51 00

EuroMaint Rail AB

SOLNABox 1555, SE-171 29 Solna, SwedenVisiting address: Svetsarvägen 10Tel: +46 8-762 51 00

EuroMaint Industry AB

SKÖVDESE-541 87 Skövde, SwedenVisiting address: Kavelbrovägen 2Tel: +46 500-91 70 00

Figures20082008

Contents

EUROMAINT ANNUAL REPORT 2008

Directors' report 4

Income Statement 6

Balance Sheet 7

Change in Equity 9

Cash Flow Statement 11

Notes 12

Auditors' Report 34

4 • EUROMAINT ANNUAL REPORT 2008

Directors' report

The Board of Directors and President of EuroMaint Gruppen AB, Corporate identification number 556731-5402, with headquarters in Stockholm, hereby submit the annual report for business activities during the financial year 2008.

OwnerEuroMaint Gruppen AB is wholly owned by the company EMaint AB, Corporate identification number 556731-5378, with headquarters in Stockholm, which is owned by Ratos AB. EuroMaint Gruppen AB acquired 100% of EuroMaint AB on 1 September 2008 from the previous owner AB Swedcarrier.

Operations and organisationEuroMaint is a strong and leading maintenance partner that combines innovative thinking with solid long-term experience in order to raise its customers’ efficiency. Through innovative technical system services, customised comprehensive solutions and partnerships, EuroMaint's companies offer maintenance and technical solutions that contribute to the competitiveness and success of their customers.

The collective main products are comprehensive maintenance solutions, with a Total Service Concept that includes prevention, repair, restoration and improved maintenance.

EuroMaint's companies are specialist companies that offer qualified maintenance services to manufacturing and rail transport industry. In 2008, EuroMaint had three subsidiaries: EuroMaint Industry AB, EuroMaint Rail AB and EuroMaint Tracksupport AB. At Group level, industry wide matters are pursued that promote the generation and identification of new activities, and help to maintain and develop its position as a leading maintenance partner. The Parent Company, EuroMaint Gruppen AB, owns, manages and administers securities in subsidiaries within the rail industry and the engineering and process industry, conducts consultancy work and associated activities in relation to these.

EuroMaint can be found throughout Sweden, from Luleå in the north to Malmö in the south, as well as in Jelgava, Latvia, and Detroit, USA. The head office is in Sundbyberg.

The Business EnvironmentCustomers want to increase their profitability and competitiveness through the improved availability, reliability and longevity of their production equipment – irrespective of the industry concerned. EuroMaint develops its maintenance in step with changing requirements in order to be a world class supplier.

Various means of potential growthWorld class key activities in the domestic market is a necessary basis for the expansion planned by EuroMaint. Central to this process is the ability to show tangible benefits for new customers that choose EuroMaint as maintenance partner. EuroMaint's business model demonstrates that, as an independent partner, it has the same objectives as the client with regards to the optimi-sation of operations for increased profitability, and that the high quality seen domestically can also be transferred to new markets. Another form of inter-nationalisation is taking place in the Baltic region, where the establishment of a workshop is opening for new customers in a growing market. Another way is for business in other countries, such as Norway, is being carried out in Swedish workshops. Growth may even occur through acquisitions and busi-ness takeovers in other industries where EuroMaint sees that synergies can be utilised within the maintenance group.

EmployeesDuring the period, EuroMaint Industry has signed a letter of intent with Husqvarna regarding the takover of activities and will therefore acquire 64 new employees. The takover took place on 1 January 2009.

Environmental impactThe main environmental impact common to all of EuroMaint Rail's product areas is on air and water, and to a lesser extent, land. The activities that are operated are classified as environmentally hazardous, and require reporting to the Environment Agency. The Environment Agency decides whether the degree of environmental hazards requires permits or reporting. If EuroMaint Rail does not receive the environmental permit required for production, this may result in a deterioration in the ability to fulfill commitments towards the Customer. If permission should occur, over a short period of time, there is the possibility to switch the use of workshops in order to limit the eco-nomic damage.

EuroMaint Rail's units are obliged to declare according to Ordinance(1998:899) concerning Environmentally Hazardous Activities and The Protection of Public Health, with the exception of the operations in Örebro which are subject to licence. Notifiable activity exercised by EuroMaint Rail are, e.g. 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 through extensive chemicals handling in connection with e.g. vehicle cleaning, painting, etc.

EuroMaint Tracksupport operates a notifiable operation in Åmål.EuroMaint Industry does not operate any licence obligated operations.

Throughout EuroMaint Industry, the operations have a limited environmen-tal impact and therefore the financial risk is small.

Noteworthy risksThe Group's companies have a customer structure in which a few customers dominate with regards to the proportion of the Group's turnover. The loss of a major customer or significant customer account would result in substantial demands on an adjustment of the company's administrative support func-tions to the reduced turnover. During a transitional period, the company's profitability would be reduced. Since customer relations often comprise several contractual areas with varying contractual lengths however, this risk is distributed over time.

EUROMAINT ANNUAL REPORT 2008 • 5

Financial instruments and risk managementThrough its operations, EuroMaint is exposed to financial risks, including the effect of changes to prices on the loan and capital markets, exchange rates and interest rates. The Group's overall risk management focuses on unpredictability of the financial markets, and strives to minimise potentially unfavourable influences on the Group’s financial results. Financial operations in the Group are centralised in the EuroMaint AB’s financial function. The financial 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 flow 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 that exchange rate fluctuations negatively affect the Group's income statement, balance sheet and/or the cash flow. Currency risk exists both in the form of transaction risk and translation risk.– Interest rate riskInterest rate risk refers to the risk of a negative effect on the Group's profit due to changes in the market rates of interest.

Other risks– Credit riskCredit risk is the risk generated by the fact that the investor's opposite party's changes in an unpredictable manner thereby resulting in a loss for the Group.– Liquidity and refinancing riskRefinancing risk refers to the risk that the refinancing of mature loans is complicated or becomes costly and that EuroMaint therefore has difficulty fulfilling its payment obligations. Liquidity risk refers to the risk of difficulties fulfilling the obligations associated with financial liabilities.

For more information about financial risks, see note 22.

Future developmentThe trends in the maintenance sector are the progression from being a passive delivery organisation to becoming a proactive maintenance partner, from a cost-driven maintenance department to a value-creating maintenance provider and from pre-defined to condition-based maintenance.

EuroMaint’s business logic and EuroMaint's strategy is to develop partnerships with customers and establish a business relationship where efficient maintenance pays off, so that EuroMaint gets paid when customers earn money on their equipment, rather than for implementing specific work tasks. Hourly rates for maintenance carried out are being replaced by conceptualised turnkey services.

Significant events that occurred during the financial year or following the year-endIn December 2008, Ole Kjörrefjord who had previously been the Chairman of the board for the Group since 2007, became the new CEO of EuroMaint and President of the parent company, EuroMaint Gruppen AB. The departing CEO and President of the parent company, Pether Wallin, will remain available during 2009.

The decision was taken to integrate the subsidiary EuroMaint Tracksupport AB as a business area within the subsidiary EuroMaint Rail AB. EuroMaint Industry served redundancy notices to 36 employees at its maintenance and tools operation in Hallsberg – a direct consequence of the decline in the automotive industry.

Turnover and results

TurnoverTotal earnings amounted to SEK 2,324 million (741).

Operating profitOperating profit amounted to SEK 118 million (-2) giving an operating margin of 5% (0%). The previous year's operating profit was affected by items affect-ing comparability of SEK 25 million attributable to cost reduction programme as well as SEK 19 million attributable to the amended pension obligations within EuroMaint Rail.

Financial itemsNet financial income amounted to SEK -84 million (-26).

Cash flowCash flow for the period after investments amounted to SEK 87 million (-981).

Equity/assets ratio The equity/assets ratio amounted to 24% (23%). The equity/assets ratio is measured as equity and shareholder borrowing in relation to the balance sheet total.

Proposed appropriation of profitsThe parent company's result for the period was SEK -47,475,381.

Available for the Annual General Meeting, SEK:

Fair value reserve -12,999,185

Profit brought forward 250,217,943

Profit/loss for the year -47,475,381

TOTAL 189,743,377

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

Carry forward 189,743,377

TOTAL 189,743,377

The income statement and balance sheet will be presented at the Annual General Meeting on 31 March 2009 for adoption.


Income Statement

SEK (000's) Note The Group The Group The Parent Company The Parent Company

2008-01-01 2007-09-01 2008-01-01 2007-04-25 2008-12-31 2007-12-31 2008-12-31 2007-12-31

OPERATING INCOME

Net turnover 25 2,315,946 739,852 4,458 1,512

Other operating income 7,909 1,634 - -

TOTAL OPERATING INCOME 2,323,855 741,486 4,458 1,512

OPERATING EXPENSES

Cost of goods and services sold -835,401 -253,480 - -

Other external costs 5, 19, 20 -425,713 -172,603 -469 -661

Personnel costs 6 -899,715 -306,176 -4,458 -1,439

Depreciation 7 -37,587 -9,484 - -

Amortisation 8 -3,987 -625 - -

Other operating expenses 4 -3,938 -1,425 - -

TOTAL OPERATING EXPENSES -2,206,341 -743,793 -4,927 -2,100

OPERATING PROFIT 117,514 -2,307 -469 -588

FINANCIAL ITEMS

Financial income 9 2,976 607 377 11

Financial expenses 9 -87,087 -27,089 -65,672 -20,559

NET FINANCIAL ITEMS -84,111 -26,482 -65,295 -20,548

PROFIT BEFORE TAX 33,403 -28,789 -65,764 -21,136

Tax 10 -10,979 -8,793 -18,289 5,918

NET PROFIT 22,424 -19,996 -47,475 -15,218

Parent company shareholders' share of

net profit 22,424 -19,996 -47,475 -15,218

EARNINGS PER SHARE,

UNDILUTED 224,2 -200,0 -474,8 -152,2


Balance Sheet

The Group The Group The Parent Company The Parent Company

SEK (000's) Note 2008-12-31 2007-12-31 2008-12-31 2007-12-31

ASSETS

FIXED ASSETS

Tangible fixed assets 7, 20 208,053 195,942 - -

Intangible fixed assets 8 706,039 710,026 - -

Shares in Group companies 11 - - 935,200 935,200

Deferred tax assets 10 10,500 11,477 6,510 5,918

TOTAL FIXED ASSETS 924,592 917,445 941,710 941,118

CURRENT ASSETS

Stock 13 264,353 280,246 - -

Accounts receivable 14, 24 309,903 344,955 -1,084 1,004

Receivables from Group companies 14 - 1,757 - -

Tax receivables 14 28,400 16,026 - -

Other receivables 14 75,219 87,300 80,446 925

Completed, not invoiced 14, 26 193,458 87,691 - -

Prepaid expenses and accrued income 14 68,117 71,354 - -

Cash and cash equivalents 33,302 - 2,074 5,963

TOTAL CURRENT ASSETS 972,752 889,329 81,436 7,892

TOTAL ASSETS 1,897,344 1,806,774 1,023,146 949,010

LIABILITIES AND EQUITY

EQUITY

Share capital 100 100

Other contributed capital 208,000 208,000

Reserves -5,656 83

Profit brought forward including profit/loss for the year 849 -19,996

EQUITY ATTRIBUTABLE TO

PARENT COMPANY SHAREHOLDERS 203,293 188,187

RESTRICTED EQUITY

Share capital 100 100

NON-RESTRICTED EQUITY

Fair value reserve -12,999

Accumulated profit 250,217 208,000

Profit/loss for the year -47,475 -15,218

TOTAL EQUITY 189,843 192,882


Balance Sheet [ cont.]


SEK (000's) Note 2008-12-31 2007-12-31 2008-12-31 2007-12-31

LONG-TERM LIABILITIES

Long-term interest bearing liabilities 15, 20 746,416 776,358 539,120 537,200

Shareholder borrowing 15 244,112 217,569 244,112 217,569

Provisions for pensions and similar obligations 12 19,033 35,164 - -

Other provisions 16 18,840 16,276 - -

Deferred tax liabilities 10 12,791 5,110 - -

Other long-term liabilities 26,090 - 26,090 -

TOTAL LONG-TERM LIABILITIES 1,067,282 1,050,477 809,322 754,769

CURRENT LIABILITIES

Advance payment from customers 17 71,770 50,420 - -

Accounts payable 17 235,877 201,591 - 814

Liabilities to Group companies 17 21 34 22,445 -

Liabilities to credit institutions, interest bearing 15 - 22,840 - -

Other short-term liabilities 17 30,152 43,623 1,061 -

Accrued liabilities/deferred income 17 288,949 249,602 475 545

TOTAL CURRENT LIABILITIES 626,769 568,110 23,981 1,359

TOTAL LIABILITIES 1,694,051 1,618,587 833,303 756,128

TOTAL EQUITY AND LIABILITIES 1,897,344 1,806,774 1,023,146 949,010

PLEDGED ASSETS AND

CONTINGENT LIABILITIES

Pledged assets, floating charges 18 93,287 63,653

Contingent liabilities 18 - -


Change in Equity

1 January – 31 December 2008

SEK (000's)

EQUITY

THE GROUP

Opening equity 2008-01-01 100 208,000 83 -19,996 188,187

Appropriation of profits -19,996 19,996 -

Translation reserve* -1,077 -1,077

Valuation of hedging instruments -4,662 -4,662

Finance lease -1,579 -1,579

Profit/loss for the year 22,424 22,424

CLOSING EQUITY 2008-12-31 100 208,000 -21,575 -5,656 22,424 203,293

Company formation 2007-09-01 100 100

Unconditional shareholders' contribution 208,000 208,000

Translation reserve* 83 83


CLOSING EQUITY 2007-12-31 100 208,000 83 -19,996 188,187

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

CHANGE IN TRANSLATION RESERVE Share capital

Opening translation reserve 2008-01-01 83

Change for the year from the translation

of companies -1,077

CLOSING TRANSLATION RESERVE 2008-12-31 -994

Opening translation reserve 01.09.07 -

Change for the year from the translation

of companies 83

CLOSING TRANSLATION RESERVE 2007-12-31 83

Share capital Other contributed capital

Accumulated profit

Reserves Profit for the year

Totalequity


Change in Equity [ cont.]

EQUITY RESTRICTED EQUITY NON-RESTRICTED EQUITY

PARENT COMPANY

Opening equity 2008-01-01 100 208,000 -15,218 192,882

Appropriation of profits -15,218 15,218 -

Valuation of hedging instruments -12,999 -12,999

Group contribution received 79,771 79,771

Tax on Group contribution received -22,336 -22,336


CLOSING EQUITY 2008-12-31 100 250,217 -12,999 -47,475 189,843

Company formation 2007-04-25 100 100

Unconditional shareholders' contribution 208,000 208,000


CLOSING EQUITY 2007-12-31 100 208,000 -15,218 192,882

The number of shares in the parent company amounts to 100,000.

The face value in the parent company is 1.

Share capital Accumulatedprofit

Fair value reserve

Profit for the year

Totalequity


Cash Flow Statement

1 January – 31 December 2008 The Group The Group The Parent Company The Parent Company

SEK (000's) Note 2008-01-01 2007-09-01 2008-01-01 2007-04-25 2008-12-31 2007-12-31 2008-12-31 2007-12-31

OPERATING ACTIVITIES

Profit after financial items 33,403 -28,789 -65,764 -21,136

Depreciation/amortisation 41,574 10,109 - -

Other items not affecting liquidity 21 3,763 42,574 10,766 -

Income tax paid -14,113 -3,033 18,759 6,843

CASH FLOW FROM

OPERATING ACTIVITIES

BEFORE CHANGES IN WORKING CAPITAL 64,627 20,861 -36,239 -14,293

CHANGES IN WORKING CAPITAL

Increase (-)/Decrease(+) in stock 18,252 12,131 - -

Increase (-)/Decrease(+) in accounts receivable 36,810 -108,604 2,089 -

Increase (-)/Decrease(+) in other short-term receivables -93,391 -15,370 250 -8,773

Increase (+)/Decrease(-) in accounts payable 34,252 93,508 -814 814

Increase (+)/Decrease(-) in other short-term liabilities 67,146 -27,589 173 545

CASH FLOW FROM

OPERATING ACTIVITIES 127,696 -25,063 -34,541 -21,707

INVESTING ACTIVITIES

Acquisition of tangible and

intangible fixed assets 7 -40,822 -20,982 - -

Divestment of tangible and

intangible fixed assets 10 245 - -

Acquisition of subsidiary/business segment,

net liquidity impact - -935,200 - -935,200

Purchase of other financial assets - - - -

CASH FLOW FROM

INVESTING ACTIVITIES -40,812 -955,937 - -935,200

CASH FLOW FROM

OPERATIONAL ACTIVITIES 86,884 -981,000 -34,541 -956,907

FINANCING ACTIVITIES

New share issue - - - 100

Received shareholder contributions - 208,000 - 208,000

Borrowings 8,452 750,040 30,652 754,769

Amortisation loan -62,034 - - -

CASH FLOW FROM

FINANCING ACTIVITIES -53,582 958,040 30,652 962,869

Net change in cash and cash equivalents 33,302 -22,960 -3,889 5,963

Cash and cash equivalents at beginning of period - 22,960 5,963 -

CASH AND CASH EQUIVALENTS AT YEAR-END 21 33,302 - 2,074 5,963


Notes

This annual report has been adopted by the board and the President on 2 March 2009 and is proposed for final adoption by the Annual General Meeting on 31 March 2009.

Ratos formed EuroMaint Gruppen AB on 25 April 2007. EuroMaint Gruppen AB acquired EuroMaint AB on 1 September 2007. Disclosures in the financial state-ments for the previous year refer to the parent company for the period 25 April 2007 to 31 December 2007. Disclosures in the financial statements for the previous year for the Group relate to the period 1 September 2007, the date that the parent company acquired EuroMaint AB, up to 31 December 2007.

The parent company is a registered limited liability company with headquarters in Stockholm. The address of the headquarters is Landsvägen 50 A, SE 172 63 Sundbyberg, Sweden. The parent company of the largest group that EuroMaint AB, 556731-5402, is subsidiary of, and where the consolidated financial statements are prepared, 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.

Statement of compliance with applicable regulationsEuroMaint Group's consolidated financial statements have been prepared in accord-ance with the Annual Accounts Act and International Financial Reporting Standards (IFRS) as adopted by the EU. The consolidated financial statements are also prepared pursuant to the Swedish Financial Reporting Board Recommendation RFR 1.1 (Supplementary accounting rules for Groups). The accounting policies relating to the parent company correspond with the principles for the Group except as shown below under the heading The parent company. The parent company's financial state-ments are prepared in accordance with the the Swedish Financial Reporting Board Recommendation RFR 2.1 (Accounting for legal entities) and the Annual Accounts Act.

Basis of preparationThe accounts are based on historical costs, except for certain financial instruments and investment property which are carried at fair value. In the case of stock, this is reported at the replacement cost.

Important estimates and assumptions for accounting purposesThe preparation of reports in accordance with IFRS requires the use of a number of estimates and assumptions about the future. The estimates for accounting purposes that result will, by definition, rarely correspond to the the actual results. EuroMaint's best assumption however is that there are no critical assessments that may significantly affect the evaluation of the company's financial position.

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 are greatest due to the need to change assumptions or estimates.

Testing the write-down requirement for GoodwillGoodwill arising from business combinations represents the difference between the acquisition cost and the acquired identifiable net assets' fair value. The write-down requirement of 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 that the expected future cash flow from the cash-generating unit is estimated and an appropriate discount rate is established for calculating the cash flow's present value.

Pension obligationsThe value of the pension obligations for defined benefit pension plans is based on actuarial calculations based on assumptions about 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 methodWith the percentage of completion method there is uncertainty in predicting the final financial outcome of a major refurbishment project, since the work continues over several years. Reconciliation is made therefore during the period from the beginning of the project until completion, but because this consumes both time and costs, this is only performed a certain number of times during the year.

Provisions for guarantees for work carried outSo-called availability work relates to the correction of errors in a completed service or a non-functioning product for a short time following the completion of the service. The cost of the work or the replacement of non-functioning products is included in the agreed deal.

For refurbishment work, there is a need for warranties as regards the customer, ranging from one up to two years. Since each refurbishment deal is a unique part of the company's operations and cannot be compared with any other refurbishment deal, the cost for warranties are difficult to assess. The company tries to estimate the warranty costs that may arise, and make provisions for this, but some uncertainty remains over the final outcome.

Consolidated financial statements EuroMaint Group's income statement and balance sheet omprise 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.

Intra-group transactions and balance sheet items, as well as profit on transactions between Group companies are eliminated. Losses are also eliminated, unless the transaction provides evidence that a write-down requirement exists for the transferred asset.

Business combinationsIFRS 3 requires that the fair value of identifiable assets and liabilities in the acquired business are fixed at the time of acquisition. Identifiable assets and liabilities also include assets, liabilities and provisions, including obligations and claims from third parties not reported in the acquired business's balance sheet. Provisions are not made for expenses relating to planned restructuring measures that are a result of the acquisition. The difference between the cost of the acquisition and the acquired share of the net assets of the acquired business is classified as goodwill and is recognised as an intangible asset on the balance sheet.

The useful life of each intangible asset is determined and the asset's fair value is amortised over its useful life. If the useful life is deemed to be indefinite, no amortisation takes place. An assessment that results in an intangible asset's useful life to be indefinite takes into account all relevant factors and is based upon there being no further foreseeable time limit for the the net cash flow that the asset generates. The useful life of goodwill is assumed to be indefinite and does not depreciate, but is tested for write-down requirement once a year.

Segment reportingSince the subsidiaries operate separate businesses with specific products and services, their operations have been selected as primary segments. Sales between the subsidiaries are based on market conditions. All assets and liabilities have been included for each subsidiary.

Segment information per line of business is shown in note 3.

NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES


NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES cont .

Foreign currency – translationReceivables and liabilities in foreign currencies are translated at the closing day rate.

When establishing the consolidated financial statements, all items in the income statement for foreign subsidiaries are translated to Swedish kronor using the average exchange rates during the year. All balance sheet items are translated using the exchange rates at each balance sheet date. The changes in the Group's equity arising from different currency exchange rates at the balance sheet date compared with the price at the previous balance sheet date are shown in the translation difference directly in equity.

Functional currencyAll subsidiaries use the local currency as the functional currency. Transactions are reported at the transaction day rate, which is then translated. The functional currency of the parent company is SEK and the reporting currency for both the parent company and the Group is SEK.

Tangible fixed assetsTangible fixed assets are included at cost of acquisition, less accumulated depreciation and accumulated write-down.

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 asso-ciated with the asset will flow to the Group and the acquisition 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.

Assets leased under finance lease contracts are reported as fixed assets in the balance sheet and are initially 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 recorded as long- and short-term debt. The leased assets are depreciated over the asset's useful life, while lease payments are reported as interest and the amortisation of debts.

Assets leased under operating leases are not reported in the balance sheet. Operating leases do not give rise to a liability either.

To allocate their acquisition cost down to the estimated residual value, the depreciation of tangible assets is made linearly according to plan over the remaining estimated useful life:

Category Depreciation year

Machinery and equipment 5–10

IT equipment 3

Improvements to property 5–10

The assets' residual values and useful lives are reviewed at each balance sheet date and are adjusted if necessary. An asset's carrying amount is written down immediately to its recoverable amount (the higher of net selling price and value in use) if the asset's carrying amount exceeds its estimated recoverable amount.

Profits and losses on divestments are determined by comparing the sales proceeds and the carrying value, and the result is reported in the income statement.

Intangible assetsGoodwillGoodwill represents the amount by which the cost of acquisition exceeds the fair value of the Group's share of the acquired subsidiary's identifiable net assets at the time of acquisition. Goodwill is recorderd as intangible assets. Profit or loss on the divest-ment of an entity includes the remaining carrying value of the goodwill relating to the divested entity.

Goodwill is allocated to cash generating units for the examination of any write-down requirement. The write-down requirement for goodwill is examined by 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 goodwill is allocated to corresponds to the lowest level within the Group at which goodwill is monitored in the company's management and is not a bigger part of the Group than one segment. A write-down requirement exists when the recoverable amount of a cash-generating unit (or groups of cash generating units) is less than the carrying value. A write-down is then recorded in the income statement.

Customer and market-related assetsAcquired intangible assets such as brands, customer related assets and other similar items are capitalised and carried at cost less accumulated depreciation and write-downs.

TechnologyResearch projects or patent rights acquired in a business combination are capitalised and carried at the cost of acquisition less depreciation and write-downs.

Category Depreciation year

Customer relations 8

Technology 3

Investment PropertyInvestment properties are reported at fair value, which is the market value as determined by external and internal valuers. Changes in fair value are reported in the income statement as a part of Other operating income.

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 acquisition cost of the item can be measured reliably. The carrying value of the replaced part is removed from the balance sheet. All other types of repairs and maintenance are reported as expenses in the income statement during the period in which they arise.

Write-down of assets that are not financialAssets that have an indefinite useful life are not depreciated, but are tested annually for any write-down requirement. The assets which are depreciated are assessed in terms of any write-down requirement whenever events or changes in circumstances indicate that the carrying value is not recoverable. A write-down is made according to the amount by which the asset's carrying value exceeds its recoverable value. The recoverable amount is the higher of an asset's fair value less selling expenses and value in use. In assessing the write-down requirement, assets are grouped at the lowest levels where there are separate identifiable cash flows (cash generating units). An asset, except goodwill or financial assets, that has previously been depreciated is tested at each balance sheet date as to whether the reversal should be done.

>>>


Notes

Financial instrumentsFinancial instruments that are reported in the balance sheet include, on the asset side, cash, receivables, derivatives and other receivables. On the liability side are accounts payable, loans, derivatives and other liabilities.

A financial asset or financial liability is entered in the balance sheet when the company become a party to the instrument's contractual terms. Accounts receivable are entered in the balance sheet when the invoice has been sent. Liabilities are entered when the counterparty has delivered and a contractual obligation to pay exists, even if the invoice has not yet been received. Accounts payable are entered when the invoice has been received.

A financial asset is derecognised when the rights in the agreement have been realised, canceled or the company loses control over it. The same applies to part of a financial asset. A financial liability is derecognised when the obligation in the contract has been fulfilled or is otherwise extinguished. The same applies to part of a financial liability. The write-down requirement on accounts payable are assessed continuously.

Classification of financial instrumentsThe Group classifies its financial instruments according to the following categories: financial assets or financial liabilities held for trading and are measured at fair value through profit or loss, loans and receivables, liabilities valued 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 the initial accounting 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, wherby 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 reported value.

Financial assets excluding derivativesAcquisitions 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 assets are valued at the amortised cost of acquisition in the balance sheet.

Financial assets measured at fair value through the income statementThis category includes financial assets held for trading and those which, from the time of investment, are attributable to the category evaluated 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 either 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 balance sheet are measured at fair value both initially 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.

Loan receivables and accounts receivable Loan receivables and accounts receivable are financial assets that are not derivatives, with fixed or determinable payments that are not quoted in an active market. Loan receivables and accounts receivable are reported initially at fair value and are subsequently measured at amortised cost using the effective interest method, less any provisions for depreciation. 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 reserve size is the difference between the asset's carrying value and the value of estimated future cash flows. Depreciation is reported in the income statement.

NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES [cont . ]

Financial liabilities measured 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 and value changes are reported in the income statement as a financial item.

Synthetic optionsSynthetic option programmes with market premiums are reported and valued in accordance with IAS 39. Received premiums are reported 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 cost to the company initially.

The liability is continuously revalued 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 regarding financial assets and liabilities. If a synthetic option is exercised by the holder, the financial liability, as previously revalued at fair value is settled. Any realised profit is reported in the income statement as a financial item. If the synthetic options mature without value, the reported liability is recorded as income.

BorrowingLoans are reported initially at the principal loan amount and are subsequently reported at amortised cost. 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 fair value and are subsequently measured at amortised cost using the effective interest method.

Derivatives and hedge accountingThe Group uses derivative instruments in the form of futures to hedge parts of their exposure to currency risks in the continuous payment flows. Hedge accounting is applied from 1 January 2008. The effective portion of the hedging instrument's change in value is thereby reported as equity, other changes in value are reported in the income statement. 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 is prepared, and that efficiency can be shown to be high through efficiency measurement.

The accumulated amount in equity is reversed in the income statement 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 gains or losses remain in equity and are taken up as income, while the forecast transaction is ultimately reported in the income statement. If a forecast transaction is no longer expected, the cumulative gain or loss reported in equity is immediately transferred to the income statement.

Derivatives with positive values are reported as assets and derivatives with negative values as liabilities. The fair value corresponds to Swedbank's measurement on the balance sheet date.

The Group uses interest rate swaps to hedge parts of borrowings with variable interest rates. Changes in value are reported via equity.

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



StockStocks and inventories are reported at replacement value. The replacement value is considered to be the lower of the cost of acquisition or fair value, which means that the company applies the lowest value principle.

Contingent liabilitiesContingent liabilities on the balance sheet date are in accordance with information from PRI.

ClassificationThe fixed assets, long-term 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 taxable 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 at 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 decided 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 carryforwards to the extent it is likely that future taxable profits will be available against which the temporary differences or unused deductions 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 charges 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 charges 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 cost relating to past service can be allocated on a straight-line basis over the vesting period.

For EuroMaint Gruppen AB's acquisition of EuroMaint AB, assets and liabilities that are attributable to post-employment benefits have been reported at the present value of obligations and plan assets, according to IAS 19 point 108. This means that actuarial gains and losses that were incurred before the acquisition have been accounted for in the consolidated balance sheet, including those that may be to attributable exceeding to "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 constructive 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 departure from employ-ment in exchange for such compensation. The Group reports the liability or cost when it is demonstrably committed to either terminate the employee according to a detailed formal plan without the possibility of revocation, or to provide termination benefits as a result of an offer made to encourage voluntary departure from employment. 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 constructive 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 is assessed as to whether these will require an outflow of resources to altogether settle this entire group of obligations. Where the effect of at what point in time the payment is material, the provisions are calculated by discounting the expected future cash flows 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 provision of guarantees, restructuring and pensions are reported under provisions.

Revenue recognitionRevenue is reported net of VAT, delivery discounts and similar revenue reductions. Net turnover includes sales of services within maintenance, the refurbishment of rolling stock, and the maintenance and implementation of production facilities for the engineering industry.

For maintenance deals, i.e. refurbishment deals, assignment income is reported in relation to the assignment's completion rate, which comprises terminated assignment expenditure compared to forecast assignment costs. This accounting is based on the view that the performance is fulfilled as the work is carried-out and means that the reported profits are gradually 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 vehicles have travelled.

For maintenance and the implementation of production facilities for the engineering sector, obligations exceeding one million kronor are also reported through gradual income recognition.

If an assignment's final outcome cannot be estimated reliably but a loss is not expected, revenue is reported as equivalent to costs incurred.

An anticipated loss for an assignment is charged in full immediately in the result for the period.

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Notes


Financial income and expensesFinancial income relates to the positive exchange rate differences, interest income on financial assets, pension assets and deposits. Financial costs are costs related to loans, pension liabilities, current bank charges and negative foreign exchange differences.

Lease contractsOperating leasesLeases in which a substantial part of 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 linearly over the lease period.

Finance leaseMinimum 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 each accounting period. Variable charges are written-off in the periods they are incurred.

Cash Flow AnalysisThe indirect method is applied when reporting cash flow from operating activities.

Information about related partiesRelated parties refer to the companies where EuroMaint or parties related to EuroMaint can exercise a controlling or significant influence in terms of the operational and financial decisions. The related circle also includes the companies and individuals who have an opportunity to exercise a controlling or 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 President and other senior executives, and close relatives of such individuals. The other senior executives are the four people who, together with the President repre-sent the Group Management. Remuneration to the board and Group Management is presented in Note 6.

New IFRS and interpretationIFRS 8 Operating segmentsThe standard became effective from 1 January 2009 and is valid for financial years begin-ning on or after that date. The standard deals with the classification of the company's operations in different segments. According to the standard, the company use the internal reporting structure as its starting point and determine the reporting segments after that. In the Annual Report for 2008, EuroMaint has reported under IFRS 8 but this has not had any impact on the Group's segment reporting.

Apart from IFRS 8, new standards and interpretation statements, which have been approved by the EU and first come into effect for and including the financial year 2009 and have not been applied in the preparation of these financial statements.

IFRS 2 Share-based paymentsThis standard clarifies, e.g. the conditions that constitute "the vesting conditions", that all other conditions are "non-vesting conditions" and how "non-vesting conditions" are presented. The change will apply to the financial year starting 1 January 2009 or later. This standard is not applied by the Group as there are no share-based payments.

IFRS 3 Business Combinations and the amended IAS 27 Consolidated Financial StatementsThe revision results in changes to consolidated financial statements and accounting for acquisitions. The revised standards will apply to financial years beginning on 1 July 2009 or later. These standards have not yet been applied by the Group.

IAS 1 Presentation of Financial StatementsThe amendments result in some changes to the presentation of the financial state-ments, and new, non-compulsory, designations for the reports are suggested. The change does not affect the determination of the amounts reported. The revised IAS 1 will apply to financial years starting on 1 January 2009 or later. This standard has not been applied early in the Group.

The Parent CompanyThe parent company's financial statements are prepared in accordance with the the Swedish Financial Reporting Board Recommendation RFR 2.1 (Accounting for legal entities) and the Annual Accounts Act.

Shareholder contributions and group contributionsThe company reports Group and shareholder contributions in accordance with the statement from the Swedish Financial Reporting Board (UFR 2). Shareholder contri-butions are entered directly in equity of the recipient and are capitalised in shares and participating right in the donor, to the extent that no write-down is necessary. Group contributions are reported according to their financial significance. This means that Group contributions that are issued and received in order to minimise the Group's total tax are reported directly in retained earnings after deductions for the current tax effect.

Group contributions that are equivalent to a dividend are reported as a dividend. This means that Group contributions received and their current tax effect are reported in the income statement. Issued Group contributions and their current tax effects are reported directly against retained earnings.

Group contributions that are equivalent to shareholders' contributions are reported, with regard to the current tax effect, by the recipient directly in retained earnings. The donor reports the Group contribution and its current tax effect as investing in shares in Group companies, to the extent that no write-down is necessary.


NOTE 2 TRANSACTIONS WITH RELATED PARTIES

SEK (000's) The Group The Group The Parent Company The Parent Company

2008-01-01 2007-09-01 2008-01-01 2007-04-25 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Sales of goods and services

DIAB 2,044 2,846 - -

Purchase of goods and services

Anticimex 14 - - -

Camfil 13 1 - -

GS-Hydro 3 2 - -

Lindab 84 100 - -

MCC 20 - - -

Loans to related parties

DIAB - 1,757 - -

Liabilities to related parties

Anticimex 2 - - -

Camfil 10 - - -

Lindab 9 34 - -

EMaint (Ratos) 244,112 217,569 244,112 217,569

The following table presents what transactions with related parties mainly consist of.

Income Costs

Anticimex Material purchase

Camfil Material purchase

GS-Hydro Material purchase

Lindab Material purchase

MCC Material purchase

DIAB Maintenance services

EMaint (Ratos) Interest expenses

Companies in Note 2 are companies within the Ratos Group.


NOTE 3 SEGMENT REPORTING

The EuroMaint Group is active in the maintenance industry. The Group has defined two segments which consist of maintenance and alterations within the rail transport industry and the maintenance and streamlining of the engineering sector, below headed Rail transport and Engineering. EuroMaint Rail AB, EuroMaint Rail SIA and EuroMaint Track Support AB are active within the rail transport segment. EuroMaint Industry AB and EuroMaint Industry Inc. are active within the engineering industry. Geographical distribution is not reported as such a distribution has not been assessed as being significant.

SEK (000's)1 January – 31 December 2008

Net turnover

External net turnover 1,958,058 363,321 -5,433 2,315,946

Internal net turnover 32,868 5,186 -38,054 -

TOTAL NET TURNOVER 1,990,926 368,507 -43,487 2,315,946

Profit/loss

Operating profit 86,841 12,843 17,830 117,514

Financial income 2,789 194 -7 2,976

Financial expenses -18,144 -1,662 -67,281 -87,087

Appropriations - -2,306 2,306 -

PROFIT BEFORE TAX 71,486 9,068 -47,152 33,403

Income tax -20,804 -2,536 12,361 -10,979

NET PROFIT 50,682 6,533 -34,791 22,424

Other information

Assets 1,073,449 160,064 663,831 1,897,344

Liabilities 807,658 115,186 771,207 1,694,051

Investments 32,772 4,178 3,872 40,822

Depreciation/amortisation 22,445 6,462 12,667 41,574

SEK (000's)1 January – 31 December 2007

Net turnover

External net turnover 637,330 104,141 -1,619 739,852

Internal net turnover 14,134 2,360 -16,494 -

TOTAL NET TURNOVER 651,464 106,501 -18,113 739,852

Profit/loss

Operating profit -1,085 1,019 -2,241 -2,307

Financial income 455 101 51 607

Financial expenses -6,613 -168 -20,308 -27,089

PROFIT BEFORE TAX -7,149 -1,097 -20,449 -28,789

Income tax 3,179 316 5,298 8,793

NET PROFIT -4,064 -781 -15,151 -19,996

Other information

Assets 1,010,070 128,819 667,885 1806774

Liabilities 755,498 81,641 781,448 1,618,587

Investments 20,241 358 383 20,982

Depreciation/amortisation 8,240 1,239 630 10,109

The Group usually reports sales and transfers between segments as if the sales and transfers are made to third parties at prevailing market prices.

Notes

Rail transport

Engineering Consolidation adjustments

The Group

Rail transport

Engineering industry

Consolidation adjustments

The Group


NOTE 4 OTHER OPERATING INCOME AND OPERATING COSTS


2008-01-01 2007-09-01 2008-01-01 2007-04-25 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Other operating income

Profit on the sale of fixed assets 55 12 - -

Exchange gains on receivables/liabilities of an operating nature 6,287 547 - -

Rental income 1,155 355 - -

Other 412 720 - -

TOTAL 7,909 1,634 - -

Other operating expenses

Loss on the sale of fixed assets -259 - - -

Currency loss of operating nature -3,679 -1,425 - -

TOTAL -3,938 -1,425 - -

NOTE 5 AUDITORS' FEES


2008-01-01 2007-09-01 2008-01-01 2007-04-25 2008-12-31 2007-12-31 2008-12-31 2007-12-31

KPMG

Auditing assignments 827 - - -

Other assignments 72 - - -

Ernst & Young

Auditing assignments 535 1,587 50 70

Other assignments 137 252 - -

TOTAL 1,571 1,839 50 70

Auditing assignments refer to the review of the financial statements and accounting as well as the administration by the board and the President, 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 audit or the implementation of such other duties. Everything else falls under other assignments. The parent company's audit fees relating to 2008 are taken by the subsidiary EuroMaint AB.


Notes

NOTE 6 AVERAGE NUMBER OF EMPLOYEES AND PERSONNEL COSTS


2008-01-01 2007-09-01 2008-01-01 2007-04-25 2008-12-31 2007-12-31 2008-12-31 2007-12-31

The average number of employees broken down by gender is

Sweden

Female 142 128 - -

Male 1,613 1,632 1 1

TOTAL 1,755 1,760 1 1

USA

Female 1 1 - -

Male 8 8 - -

TOTAL 9 9 - -

Latvia

Female 3 1 - -

Male 26 1 - -

TOTAL 29 2 - -

Board members and senior executives

Board members

Female 2 6 1 -

Male 21 32 7 8

TOTAL 23 38 8 8

The President and other senior executives

Female 4 4 - -

Male 20 20 1 1

TOTAL 24 24 1 1

Sickness absence – parent company As the parent company only has one employee, sickness absence is not reported.


NOTE 6 AVERAGE NUMBER OF EMPLOYEES AND PERSONNEL COSTS [cont . ]

Personnel costs, SEK (000's) The Group The Group

2008-01-01 2007-09-01Salaries and other benefits in Sweden 2008-12-31 2007-12-31

The board and President 6,986 1,519

Including bonuses and comparable remuneration - -

Other employees 593,373 207,242

TOTAL SALARY AND OTHER BENEFITS 600,359 208,761

Payroll overheads 290,269 94,880

Of which pension expenses 69,045 18,024

Salaries and other benefits in USA

The board and President - -


Other employees 5,439 2,627

TOTAL SALARY AND OTHER BENEFITS 5,439 2,627

Payroll overheads 1,127 612

Of which pension expenses 225 134

Salaries and other benefits in latvia

The board and President - -


Other employees 3,751 252

TOTAL SALARY AND OTHER BENEFITS 3,751 252

Payroll overheads 921 59

Remuneration to senior executives

PARENT COMPANY 2008 2007SEK (000's)

President 2,605 148 1,500 607 773 81 487 210

In 2008 EuroMaint Gruppen had the President as the sole employee.

THE GROUP 2008 2007SEK (000's)

President 5,198 262 3,157 1,387 1,976 113 1,135 458

Other senior executives 14,889 1,041 9,068 3,903 5,501 387 3,288 1,379

Remuneration and other benefits during the period The Chairman of EuroMaint Gruppen AB 2008 received a fee of SEK 300,000 (300,000) and other members received SEK 150,000 (150,000). If employed by Ratos, no fee applies. Union representatives on the board have received the scanning fee of SEK 63,000 (63,000). The President of EuroMaint AB received a salary totalling SEK 2,605,000 (773,000) during the period and utilised a company car and other benefits totalling of SEK 148,000 (81,000).

The President's retirement age is 65 years. The President has a defined contribution pension promise of 30% of monthly pensionable remuneration. The notice period is twelve months for both the company and President and during this time, salary is paid with full deduction against other income. Upon termination, the company is also charged non-pensionable twelve months severance pay with full tax credit against other income. Other Presidents and other people in the company management have signed individual contracts regarding severance pay and notice. These amounted to a maximum of twelve months' salary with a full settlement against other income as well as twelve months' non-pensionable severance pay with full tax credit against other income. Some employees in EuroMaint have signed synthetic options. These are not bound to each employee's employment however.

Salary Other benefits Payroll overheads

Of which pen-sion expenses








Notes

NOTE 7 TANGIBLE FIXED ASSETS TANGIBLE FIXED ASSETS [cont . ]

SEK (000's)THE GROUP

2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Opening acquisition values 13,540 - 29,010 - 127,438 - 203,127 - 46,805 - 419,920 -

Acquisitions of subsidiaries - 13,540 - 24,604 - 127,118 - 170,617 - 41,997 - 377,876

Change in value of investment property - - - - - - - - - - - -

Sale of operations - - - - - - - - - - - -

Purchasing - - 1,076 4,406 15,589 1,498 2,491 10,270 21,666 4,808 40,822 20,982

Finance lease - - - - - - 7,333 29,157 - - 7,333 29,157

Sales/disposals - - - - -953 -1,178 -3,680 -6,917 - - -4,633 -8,095

Currency Adjustment - - 332 - 441 - 317 - 883 - 1 973 -

CLOSING ACCUMULATED ACQUISITION VALUES 13,540 13,540 30,418 29,010 142,515 127,438 209,588 203,127 69,354 46,805 465,415 419,920

Opening depreciation -5,365 - -10,862 - -95,772 - -111,980 - - - -223,979 -

Acquisitions of subsidiaries - -5,266 - -9,788 - -94,180 - -113,111 - - - -222,345

Sale of operations - - - - - -477 - 319 - - - -158

Depreciation for the period -248 -99 -3,398 -1,074 -8,205 -2,117 -14,962 -6,194 - - -26,813 -9,484

Finance lease - depreciation - - - - - - -10,773 - - - -10,773 -

Sales/disposals - - - - 730 1,002 3,634 7,006 - - 4,364 8,008

Currency Adjustment - - -41 - -37 - -83 - - - -161 -

Closing accumulated depreciation -5,613 -5,365 -14,301 -10,862 -103,284 -95,772 -134,164 -111,980 - - -257,362 -223,979

RESIDUAL VALUE ACCORDING TO PLAN 7,927 8,175 16,117 18,148 39,231 31,666 75,424 91,147 69,354 46,805 208,053 195,942 Buildings and land are included in the value: 2008 2007

Investment property with the following values:

Taxation value 255* 255*

Book value 7,080 7,080

Communications real estate with the following values:

Taxation value - -

Book value 847 1,095

*Including the building value of SEK 0 and land value of SEK 255,000.

Closing leasing debt includes guaranteed residual values. For future minimum lease charges, see note 20.Cost of acquisition for financial leasing in 2007 of SEK 29,157,000 is net of depreciation.

NOTE 8 INTANGIBLE FIXED ASSETS

SEK (000's)

THE GROUP 2008 2007

Opening accumulated acquisition values* 692,110 10,938 6,847 709,895 - - - -

Acquisitions of subsidiaries - - - - 692,110 10,938 6,847 709,895

CLOSING ACCUMULATED ACQUISITION VALUES 692,110 10,938 6,847 709,895 692,110 10,938 6,847 709,895

Opening accumulated depreciation - -625 756 131 - - - -

Depreciation for the year - -1,875 -1,356 -3,231 - -625 - -625

Exchange rate difference - - -756 -756 - - 756 756

CLOSING ACCUMULATED DEPRECIATION - -2,500 -1,356 -3,856 - -625 756 131

NET BOOK VALUE 692,110 8,438 5,491 706,039 692,110 10,313 7,603 710,026

The greater part of goodwill is attributable to EuroMaint Rail AB and a smaller part to EuroMaint Industry AB. All intangible assets are acquired. For information with respect to depreciation, see note 1. *Opening accumulated acquisition values for 2007 refer to the time of the Group's formation on 01-09-2007.

Buildings and land Buildings and land Improvements to property

Improvementsto property

Plant and

machinery

Plant and machinery

Equipment, tools, fixtures and

fittings


fittings

Construction in progress


Total Total

Goodwill Customer relations

Technology Total Goodwill Customer relations

Technology Total


NOTE 7 TANGIBLE FIXED ASSETS TANGIBLE FIXED ASSETS [cont . ]

SEK (000's)THE GROUP

2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-01-01 2007-09-01 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Opening acquisition values 13,540 - 29,010 - 127,438 - 203,127 - 46,805 - 419,920 -

Acquisitions of subsidiaries - 13,540 - 24,604 - 127,118 - 170,617 - 41,997 - 377,876

Change in value of investment property - - - - - - - - - - - -

Sale of operations - - - - - - - - - - - -

Purchasing - - 1,076 4,406 15,589 1,498 2,491 10,270 21,666 4,808 40,822 20,982

Finance lease - - - - - - 7,333 29,157 - - 7,333 29,157

Sales/disposals - - - - -953 -1,178 -3,680 -6,917 - - -4,633 -8,095

Currency Adjustment - - 332 - 441 - 317 - 883 - 1 973 -

CLOSING ACCUMULATED ACQUISITION VALUES 13,540 13,540 30,418 29,010 142,515 127,438 209,588 203,127 69,354 46,805 465,415 419,920

Opening depreciation -5,365 - -10,862 - -95,772 - -111,980 - - - -223,979 -

Acquisitions of subsidiaries - -5,266 - -9,788 - -94,180 - -113,111 - - - -222,345

Sale of operations - - - - - -477 - 319 - - - -158

Depreciation for the period -248 -99 -3,398 -1,074 -8,205 -2,117 -14,962 -6,194 - - -26,813 -9,484

Finance lease - depreciation - - - - - - -10,773 - - - -10,773 -

Sales/disposals - - - - 730 1,002 3,634 7,006 - - 4,364 8,008

Currency Adjustment - - -41 - -37 - -83 - - - -161 -

Closing accumulated depreciation -5,613 -5,365 -14,301 -10,862 -103,284 -95,772 -134,164 -111,980 - - -257,362 -223,979

RESIDUAL VALUE ACCORDING TO PLAN 7,927 8,175 16,117 18,148 39,231 31,666 75,424 91,147 69,354 46,805 208,053 195,942 Buildings and land are included in the value: 2008 2007

Investment property with the following values:

Taxation value 255* 255*

Book value 7,080 7,080

Communications real estate with the following values:

Taxation value - -

Book value 847 1,095

*Including the building value of SEK 0 and land value of SEK 255,000.

Closing leasing debt includes guaranteed residual values. For future minimum lease charges, see note 20.Cost of acquisition for financial leasing in 2007 of SEK 29,157,000 is net of depreciation.

NOTE 9 FINANCIAL INCOME AND EXPENSES


2008-01-01 2007-09-01 2008-01-01 2007-04-25

2008-12-31 2007-12-31 2008-12-31 2007-12-31

Interest income 2,574 607 329 11

Other financial income 402 - 48 -

FINANCIAL INCOME 2,976 607 377 11

Interest expenses -84,820* -26,077 -65,672* -20,559

Net exchange rate changes -2 267 -1 012 - -

FINANCIAL EXPENSES -87,087 -27,089 -65,672 -20,559

NET FINANCIAL ITEMS -84,111 -26,482 -65,295 -20,548

*Of interest costs for the parent company and the Group SEK -26 543 are interest expenses attributable to the shareholder loan.>>>

Buildings and land Buildings and land Improvements to property

Improvementsto property

Plant and

machinery

Plant and machinery


fittings


fittings



Total Total


Notes

NOTE 9 FINANCIAL INCOME AND EXPENSES [cont . ]

INCOME AND EXPENSES BY FINANCIAL CATEGORY

SEK (000's)

THE GROUP 2008

INCOME BY CATEGORY

Interest income -715 3,039 - 250

Other financial income - 402 - -

TOTAL -715 3,441 - 250

EXPENSES BY CATEGORY

Interest expenses 951 - -87,142 1,371

Net exchange rate changes - -2,267 - -

951 -2,267 -87,037 1,371

Write-down of financial assets:

Accounts Receivable -1 431

THE GROUP 2007 INCOME BY CATEGORY

Interest income 715 -108 - -

Other financial income - - - -

TOTAL 715 -108 -


Interest expenses -2,978 - -23,099 -

Net exchange rate changes - -1,012 - -

-2,978 -1,012 -23,099 -


Accounts Receivable -3

SEK (000's)

PARENT COMPANY 2008

INCOME BY CATEGORY

Interest income - 79 - 250

Other financial income - 48 - -

TOTAL - 127 - 250


Interest expenses - - -67,043 1,371

Net exchange rate changes - - - -

- - -67,043 1,371Write-down of financial assets:

Accounts receivable -

PARENT COMPANY 2007

INCOME BY CATEGORY

Interest income - 11 - -

Other financial income - - - -

TOTAL - 11 - -


Interest expenses - - -20,599 -

Net exchange rate changes - - - -

- - -20,599 -


Accounts Receivable -

Financial assets/liabilities are measured at fair value in the income statement

– Held for tradingLoan receivables and

accounts receivableLiabilities valued at

amortised costDerivatives used for

hedging purposes





hedging purposes





hedging purposes





hedging purposes


NOTE 10 TAX


Total reported tax 2008-01-01 2007-09-01 2008-01-01 2007-04-25

2008-12-31 2007-12-31 2008-12-31 2007-12-31

Current tax -4,349 6,413 22,336 -

Deferred tax -6,630 2,380 -4,047 5,918

TOTAL -10,979 8,793 18,289 5,918

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

Unlike estimated tax with the current tax rate

Reported profit before tax 33,404 -28,789 -65,764 -21,136

Tax according to current tax rate, 28% -9,353 8,061 18,414 5,918

Effects of non-taxable income and non-deductible expenses

Non-deductible expenses -1,041 - -5 -

Non-taxable income 2,912 818 1 -

Effect of deficit utilised from previous years -3,926 - - -

Deficit in subsidiaries 623 - - -

Effect of changed tax rate -120 - -121 -

Difference between Swedish and foreign tax -74 -86 - -

TOTAL -10,979 8,793 18,289 5,918

The Group's effective tax for 2008 amounts to 32.9% (-30.5%) of taxable profit.The parent company's effective tax for 2008 amounts to -27.8% (-28.9%) 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 instrument are reported via equity, other changes have been reported in the income statement.


Deferred tax assets 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Provisions for pension obligations 1,992 3,918 - -

Deferred tax attributable to deficits 3,510 5,918 1,871 5,918

Hedging instruments (via equity) 4,762 - 4,639 -

Other provisions 236 1,641 - -

Other - - - -

PROVISIONS AT YEAR END 10,500 11,477 6,510 5,918

Deferred tax liabilities

Provisions for pension obligations 4,162 - - -

Hedging instruments (via equity) 3,089 - - -

Deferred tax in untaxed reserves 5,540 5,110 - -

PROVISIONS AT YEAR END 12,791 5,110 - -

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

Change in deferred tax asset

Opening value 11,477 - 5,918 -

Deferred tax attributable to deficits -2,409 5,918 -4,047 5,918

Deferred tax attributable to other provisions -1,405 1,641 - -

Valuation of hedging instruments 4,763 - 4,639 -

Provisions for pension obligations -1,926 3,918 - -

CLOSING VALUE 10,500 11,477 6,510 5,918

Change in deferred tax liability

Opening value 5,110 - - -

Provisions for pension obligations 4,162 - - -

Valuation of hedging instruments 3,089 - - -

Change in deferred tax in untaxed reserves 430 5,110 - -

CLOSING VALUE 12,791 5,110 - -


Notes

NOTE 12 PENSIONS AND SIMILAR OBLIGATIONS

In accordance with IAS19, Employee Benefits, actuaries on behalf of EuroMaint have calculated the Group's pension liability and the amount that should currently be should 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 Defined-contribution pension promises comprise the so-called Alternative ITP, indi-vidual pension promises made to senior executives, and PA-03. On 25 April 2006, the Confederation of Swedish Enterprise and PTK agreed changes to the ITP plan. The new ITP agreement (ITP1) came into force on 1 July 2007 and is a defined contribution pension plan. Those covered by ITP1 are thoise born in 1979 or later.

Defined benefit pension obligations ITP pensionThe old ITP plan (ITP2), applicable up to and including 30 June 2007, is a defined benefit pension plan that includes retirement, family and disability pension. Employees covered by ITP2 may either be insured by Alecta (ITP2) or by Skandia (ITP-S) and were born in 1978 or earlier. Certain obligations for retirement pensions and family pensions for salaried employees in Sweden are secured through insurance with Alecta. According to a statement from the Swedish Financial Reporting Board, UFR 3, this is a defined benefit plan that includes several employers. For the period 1 January 2008 to 31 December 2008, the company has not had access to such information that makes it possible to report this plan as a defined benefit plan. The pension plan according ITP2 which is secured by an insurance plan with Alecta is therefore reported as a defined contribution plan.

Alecta's surplus can be distributed to policyholders and/or those insured. At the end of the third quarter of 2008, Alecta's surplus in the form of level 1 collective consolidation amounted to 126.0% (164.0%). The collective consolidation level comprises the market value of Alecta's assets as a percentage of the insurance obligations calculated in accordance with Alecta's technical insurance calculation basis, which does not comply with IAS 19.

Pension according to the transitional provisions as well as professional and occupational disability annuities. Employees previously covered by the state pension plan PA-91, formerly employed by the SJ group, have the possibility of early retirement under the transitional provisions. The pension is paid from 60 years at the earliest and the pension level depends on salary and length of service. Professional and occupational disability annuities are paid continuously until the employee dies. EuroMaint is responsible for the costs for this annuity from an including the end of the year 2000/01, and previously the obligation lies with Swedish State Railways.

KPA pensionDefined-benefit pensions and annuities under state pension rules for former employees earned prior to 1992 have been redeemed in the life insurance company KPA. Premiums for this of SEK 125 million were paid in 1999. The National Government Employee Pensions Board is responsible for the calculation of benefits and administers the payment of pensions, whereby funds are continuously taken out of the insurance. The policy agrees to settle the difference in the cost of pensions paid that from the benefit amount which was the basis of the redemption premium in 1999. Such a cost adjustment is normally handled by crediting funds from the surplus held by the Group to KPA.

NOTE 11 SHARES IN GROUP COMPANIES

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

EuroMaint Rail AB 556032-2918 Stockholm 190,000 100

EuroMaint Bemanning AB 556670-3095 Stockholm 1,000 100

EuroMaint GmbH HRB 103498 B Berlin 1 100

EuroMaint SIA 40003885784 Riga 15,000 100

EuroMaint Tracksupport AB 556673-4363 Stockholm 1,000 100

EuroMaint Industry AB 556232-0134 Skövde 100,000 100

EuroMaint Industry Inc. 42-1733397 Delaware 1,000 100

Company's name Corporate Id. No.

Registered office No. of shares

Capital and

votes %

Book value 31-12-2008

Book value 31-12-2007


NOTE 12 PENSIONS AND SIMILAR OBLIGATIONS cont .

SEK (000's)

THE GROUP

2008-01-01 2007-09-011)

Reported pension cost in the income statement 2008-12-31 2007-12-31

Cost of earned benefits -5,323 -1,707

Interest expense -12,252 -3,564

Expected return on plan assets 9,844 3,475

Change in the write-down of pension assets (IAS 19 point 58b) 4,957 -

Amortisation of actuarial profit/loss (+/-) -4,600 -

Change in payroll tax on change in pension liability 6,248 -

COST OF DEFINED BENEFIT PENSIONS -1,126 -1,796

Cost of defined contribution pensions -50,938 -3,465

COST REPORTED IN THE INCOME STATEMENT -52,064 -5,261

SEK (000's)

THE GROUP

2008-01-01 2007-09-011)

Reconciliation of changes in plan assets 2008-12-31 2007-12-31

Fair value of plan assets at the start of the year2) 282,202 261,453

Expected return during the year 9,844 3,475

Premiums paid 10,240 3,379

Remuneration paid -14,419 -3,305

Actuarial gain during the year -6,518 2,659

PLAN ASSETS FAIR VALUE AT THE YEAR-END 281,349 267,661

1) 2007 refers to the period between 1 September and 31 December and the opening values and changes indicated are calculated.

2) Plan assets opening fair value have been affected by the reversal of 2007 reduction in assets by SEK 14,541,000.

Plan assets are invested in pension schemes at Skandia and KPA. Insurance policies contain a mixture of shares and bonds. At 2008-12-31, 41% (41%) were in bonds, 45% (45%) in shares, 10% (10%) in property and (4%) in other. The return during the year amounted on average to 2.0% compared with the period from 1 September to 31 December 2007 when the return was 6.6%.

For the financial year 2009, the company estimates that the costs of defined ben-efit and defined contribution pensions will be slightly higher than in 2008.

SEK (000's)

THE GROUP

Calculation Assumptions 2008-12-31 2007-12-31

Discount rate 4.30% 3.80%

Expected return on plan assets 4.00% 4.00%

Expected salary increase 3.00% 2.50%

Increase in outgoing pensions 2.00% 1.80%

Employee turnover 3.40% 3.40%

Increase in income base amounts 2.00% 2.80%

Expected average remaining service for employees 14 years 14 years

The discount rate is based on government bonds with the same duration 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 based on market expectations, which can be seen between real and nominal bonds.

SEK (000's)

THE GROUP

The following defined benefit plans

are reported in the balance sheet:

Pension liability/asset in the balance sheet (+/-) Plan 2008-12-31 2007-12-311)

Funded pension obligation -6,455 -45

Unfunded pension obligation 16,152 22,585

Professional and occupational disability annuities, unfunded 9,336 12,624

TOTAL 19,033 35,164

SEK (000's)

THE GROUP

Specification of the booked net debt in the balance sheet 2008-12-31 2007-12-311)

Net debt at beginning of year -35,164 -20,968

Retained actuarial gains/losses on acquisition - -16,910

Net cost of defined benefit pension -1,126 -1,797

Reported in the balance sheet as increase in pension liability - 78

Remuneration paid 21,435 4,359

Premiums 10,240 3,379

Compensation -14,418 -3,305

NET DEBT AT THE YEAR-END -19,033 -35,164

SEK (000's)

THE GROUP

2008-01-01 2007-09-011)

Actuarial profits and losses 2008-12-31 2007-12-31

Actuarial losses at the start of the year -78 -

Amortisation of actuarial loss 4,600 -

Actuarial loss on the present value of obligations

that occurred during the year -36,733 -139

Actuarial loss of change in assumptions -38,109 -

Actuarial gains/losses on plan assets

that occurred during the year (+/-) -6,518 61

ACTUARIAL LOSS AT THE YEAR-END

WHICH IS INCLUDED IN THE PENSION LIABILITY -76,838 -78

SEK (000's)

THE GROUP

Provisions for pensions and similar obligations in the balance sheet 2008-12-31 2007-12-311)

Present value of funded obligations 333,631 267,616

Fair value of plan assets -281,349 -267,661

Receivable/liability (-/+) 52,282 -45

Present value of unfunded obligations 34,005 35,209

Retained actuarial gains/losses (+/-) -76,838 -

Write-down of assets under IAS 19 point 58b 9,584 -

ALLOCATED IN THE BALANCE SHEET FOR

PENSIONS AND SIMILAR OBLIGATIONS 19,033 35,164


Notes

NOTE 13 STOCK

SEK (000's)

THE GROUP 2008-12-31 2007-12-31

Gross Stock 360,650 376,834

Obsolescence reserve -96,297 -96,588

Net stock 264,353 280,246

Distributed according to below

Exchange Articles 67,990 74,100

Spare parts 151,692 149,921

Other 44,671 56,225

TOTAL 264,353 280,246

All companies use an obsolescence scale tailored to each company's specific circumstances. At 31 December 2008 the acquisition cost for stock amounted to SEK 248 million (261). The booked value on the written-down stock was SEK 21 million (21) at the year end. Net write-down of stock amounted to SEK 2 million (2). The part of the cost of goods sold that has been reported by the abstraction of stock during the period was SEK 544 million (142).

NOTE 14 ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES


2008-12-31 2007-12-31 2008-12-31 2007-12-31

Accounts receivable 309,903 344,955 -1,084 1,004

Receivables from Group companies - 1,757 - -

Tax assets 28,400 16,026 - -

Other receivables 75,219 87,300 80,446 925

Completed, not invoiced 193,458 87,691 - -

Prepaid expenses and accrued income 68,117 71,354 - -

TOTAL 675,097 609,083 79,362 1,929

Specification of Prepaid expenses and accrued income

Prepaid rent 25,035 20,749 - -

Accrued income maintenance measures 33,444 32,512 - -

Other 9,638 18,093 - -

TOTAL 68,117 71,354 - -

NOTE 15 INTEREST BEARING LIABILITIES

Fair value of liabilities with floating interest rates are equal to their carrying value. The carrying amounts and fair value of long-term borrowings is as follows:

SEK (000's)

THE GROUP

Fair value Book value Fair value Book value Long-term 2008-12-31 2008-12-31 2007-12-31 2007-12-31

Bank loan 730,000 730,000 760,000 760,000

Shareholder borrowing 244,112 244,112 217,569 217,569

Financial lease liability 27,296 27,296 29,157 29,157

Other* -10,880 -10,880 -12,800 -12,800

TOTAL 990,528 990,528 993,926 993,926

*Other relates to bank charges for the borrowed loan. These are amortised over the term and are returned during the term of the loan.

Short-term

Bank overdraft facility - - 22,840 22,840

TOTAL - - 22,840 22,840

Dedicated bank overdraft facility 160,000 - 122,500 -


NOTE 15 INTEREST BEARING LIABILITIES cont .

NOTE 17 ACCOUNTS PAYABLE AND OTHER LIABILITIES


2008-12-31 2007-12-31 2008-12-31 2007-12-31

Advance payment from customers 71,770 50,420 - -

Accounts payable 235,877 201,591 - 814

Liabilities to Group companies 21 34 22,445 -

Accrued liabilities and deferred income* 288,949 249,602 475 545

Other liabilities 30,152 43,623 1,061 -

TOTAL 626,769 545,270 23,981 1,359

*Specification of Accrued liabilities and deferred income

Personnel costs 106,682 105,197 299 -

Product Liabilities 34,840 21,576 - -

Accrued costs maintenance measures 84,395 25,142 176 -

Other 63,032 97,687 - 545

TOTAL 288,949 249,602 475 545

NOTE 16 OTHER PROVISIONS

SEK (000's)

THE GROUP

Provision warrantees 2008-12-31 2007-12-31

Provisions at beginning of year* 16,276 19,798

Provisions for the year 14,764 -

Utilisation during the year -200 -

Reversal of provisions -12,000 -3,522

PROVISIONS AT YEAR END 18,840 16,276

These provisions relate to warranties for refurbished vehicles and all are considered to be long-term. Discounting of the warrantees have not taken place where outflow is expected within two years. Provisions for restructuring is 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. 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 on repairs and exchanges are mostly used. Since warranty periods are mainly longer than twelve months, they are classified throughout the provision for warranties as long-term.

*The provision in 2007 relates to the formation of the Group.

The total loan facility with Swedbank includes SEK 960,000,000 (960,000,000), and other institutions SEK 0 (0). SEK 200,000,000 of the framework refers to a so-called revolving facility to cover the bank overdraft and warranty. Of this, SEK 160,000,000 is dedicated to the overdraft facility (SEK and foreign currency) and SEK 8,335,000 (36,196,000) is utilised for issued bank guarantees. Interest on the shareholder loan amounts to 12% and is tied to the repayment. The Group's exposure, with respect to external borrowing, to changes in interest and the contractual timing of interest rate renegotiation is as follows:All loans with Swedbank run for 3 months. To achieve the effect of a larger proportion of tied interest rates, agreements regarding interest rate swap contracts have been entered into with Swedbank Finans. Swap contracts of SEK 380,000,00, were entered on 27 December 2007 and extend to 31 December 2010, provide an equivalent fixed rate of 4.6125%. At 31 December 2008 the swap contractamounted to SEK 365,000,000. During 2009, a further SEK 22.5 million will be redeemed.

The average term in months for outstanding external bank loans is therefore: 14

Weighted average interest rates including interest margins on the balance sheet date were: 5.35%

The Group The Group

Interest rate duration 2008-12-31 2007-12-31

1 year or less 365,000 380,000

1–5 years 365,000 380,000

TOTAL 730,000 760,000

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


Notes

NOTE 19 OPERATING LEASES

SEK (000's)

THE GROUP

Future minimum lease charges 2008-12-31 2007-12-31

Within 1 year 56 10,347

between 1–5 years 51 11,544

More than 5 years - 1,476

TOTAL 107 23,367

Expensed lease rentals 162 3,718

TOTAL 162 3,718

The rental of certain vehicles is reported under the Group's operating leases.At the beginning of 2008 the majority of lease agreements were reclassified from operating leases to finance leases.

NOTE 21 CASH FLOW STATEMENT, OTHER NON LIQUIDITY AFFECTING ITEMS


Capital gain/Capital loss 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Change in personnel-related reserves -19,900 44,000 - -

Change in the pension provision -16,131 366 - -

Change in other provisions and reserves 2,564 -3,522 - -

Unpaid interest on loans 26,543 8,569 - -

Other items 10,687 -6,839 10,766 -

TOTAL 3,763 42,574 10,766 -

Operating activities include interest paid on SEK -54,896,000 (-14,886,000) and interest received on SEK 855,000 (1,249,000).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 liquid investments with a maturity from the date of acquisition of less than three months, which is only exposed to an insignificant risk of changes in value.

NOTE 20 FINANCE LEASE

SEK (000's)

THE GROUP

Future minimum lease charges 2008-12-31 2007-12-31

Within 1 year 9,528 -

between 1–5 years 9,868 -

More than 5 years 991 -

TOTAL 20,399 -

Future minimum lease charges exclude guaranteed residual values as these do not constitute a future payment. Guaranteed residual values are included in the closing lease liabilities however.

Expensed lease rentals 11,409 -

TOTAL 11,409 -

No variable fees are included in net income. The hire of vehicles, computers and some office equipment is reported under the Group's financial leasing. At the beginning of 2008, the majority of lease agreements were reclassified from operating leases to finance leases, therefore, no comparative figures can be given.

For the majority of the financial leasing 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).

NOTE 18 PLEDGED ASSETS AND CONTINGENT LIABILITIES


Pledged assets 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Pledged shares in subsidiaries (net assets)* 93,287 63,653 93,287 63,653

Pledged floating charges on assets 25,190 25,190 - -

Contingent liabilities

Pension obligations, FPG/PRI 30 30 - -

TOTAL 118,507 88,873 93,287 63,653

Floating charges on assets and shares in subsidiaries (EuroMaint AB, EuroMaint Rail AB and EuroMaint Industry 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.

*In the carrying amount for pledged shares the consolidated goodwill of SEK 692 million has not included.


NOTE 22 FINANCIAL RISKS AND FINANCE POLICY

Through its operations, EuroMaint is exposed to financial risks, including the effect of changes to prices on the loan and capital markets, exchange rates and interest rates. The Group's overall risk management focuses on unpredictability of the financial markets, and strives to minimise potentially unfavourable influences on the Group’s financial results. Financial operations in the Group are centralised in EuroMaint AB's financial function. The financial 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 flow 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 that exchange rate fluctuations negatively affect the Group's income statement, balance sheet and/or the cash flow. Currency risk exists both in the form of transaction risk and translation risk.

EuroMaint is to some extent exposed to currency risks and transaction risks because of relatively large volumes purchased in foreign currency and small customer billing in the cor-responding currencies. Purchases made in foreign currencies for major projects are hedged at 100% or are agreed with variable currency clauses during the tender/contract work. Financial regulations also specify that the current net flows should be hedged at least to the specified levels during a rolling 12 month forecast period, which usually takes place by means of currency futures. Hedging is done quarterly with levels of 40% to 70% for the coming quarters 1–4. The currencies EuroMaint is exposed to are EUR, NOK, USD, GBP, DKK, LVL and CHF. The biggest currency exposure EuroMaint has is on its material purchases in EUR. The net flow is approximately EUR 16 million (12) per year, which means that a 5% deteriora-tion of the exchange rate will result in increased purchases before hedging of approximately EUR 800,000 (600,000) before tax or equivalent to approximately SEK 8.7 million (5.5) before tax. Currency hedges are made against this net flow amounting to an annual average of 50% of the amount. Exposure in NOK is mainly billing in connection with refurbish-mentbusiness and the fixed parts are hedged at 100% with currency futures. Exposure relating to the transaction risk attributable to the other currencies are not significant.

Currency risk in the form of translation risk is attributable to the currencies EUR, LVL and USD. The translation differences are judged as being small, however.

Interest rate riskInterest rate risk refers to the risk of a negative effect on the Group's profit due to changes in the market rates of interest.

EuroMaint affected by the general rate adjustments on its external debt portfolio. To counter these, 50% of the value of bank loans have been hedged with a 3 year interest rate swap. The underlying loans run for 3 months. Interest rate swaps provide a base rate of 4.6125% during the 3-year period. With the current size of the loan portfolio and 50% assurance level (interest swap), an increase in interest rates of 1% unit increases the annual interest expense for EuroMaint by SEK 3.65 million before taxes. The share-holder loan carries a fixed rate of 12% until the loan is repaid.

Other risks

Credit riskCredit risk is the risk generated by the fact that the investor's opposite party's changes in an unpredictable manner thereby resulting in a loss for the Group.

EuroMaint have procedures in place to minimize the ongoing customer credit risk in the operations. These routines relate, for example to credit testing, advances and warranty management, and ongoing credit monitoring. Identified customer losses during 2008 amounted to SEK 1,232,000 (3,000). At balance sheet date, EuroMaint had indirect collateral of approximately SEK 72 million (50) 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, due non-impaired accounts receivable Book value

Not due 266,080

Due 0–60 days 33,495

Due 61–180 days 2,491

Due 181–365 days 1,301

More than 1 year 6,536

TOTAL ACCOUNTS RECEIVABLE 309,903

Financial assets that are either due for payment or the write-down is deemed to have a good credit quality.

Liquidity and refinancing riskRefinancing risk refers to the risk that the refinancing of mature loans is complicated or becomes costly and that EuroMaint therefore has difficulty fulfilling its payment obligations. Liquidity risk refers to the risk of difficulties fulfilling the obligations associated with financial liabilities.

EuroMaint's policy is to always have the available cash and secured refinancing to the extent required for the activity. At 31 December 2008 there was a framework loan with Swedbank of SEK 960 million (960) including a bank overdraft with a framework of SEK 160 million (SEK 122.5 million). At 31 December 2008, EuroMaint fulfilled all the requirements of the financial ratios related to the financing agreement.

Due dates on bank loans and shareholder loans: Book value

Within 1 year 45,000

1–5 years 180,000

5 years or later 749,000

TOTAL 974,000

Relating to financial leasing due dates, see note 20.

SEK (000's)

Fair value of derivative instruments at the balance sheet date 2008-12-31 2007-12-31

Contracts with positive fair values:

Currency hedging (due date within 1 year) 11,302 715

Contracts with negative fair values:

Interest rate swap (due date 1-5 years) 17,638 -

Currency hedging (due date within 1 year) 2,027 2,978

The nominal amount of outstanding derivatives at 31 December 2008 is NOK 121,690,000 (Sales) and EUR 6,900,000 (Purchase)

As of 1 January 2008 derivative instruments are classified as hedging instruments. Within this, changes in value are reported via equity. The fair value on the derivative contract corresponds to Swedbank's measurement.

NOTE 23 INFORMATION ON FAIR VALUE REL ATING TO FINANCIAL INS TRUMENTS

Fair values of all financial instruments are consistent with book value, as all interest including interest on loans are deemed marketable.


Notes

NOTE 25 NET TURNOVER


2008-12-31 2007-12-31 2008-12-31 2007-12-31

Sale of services 2,090,423 674,607 4,458 1,512

Sale of goods 225,523 65,245 - -

TOTAL 2,315,946 739,852 4,458 1,512

NOTE 24 FINANCIAL INSTRUMENTS

SEK (000's), THE GROUP 2008

ASSETS BY CATEGORY

At 31 December 2008

Assets in the balance sheet Held for trading Book value Book value

Accounts receivable - 309,903 -

Other receivables - 63,917 -

Derivative instruments - - 11,302

TOTAL - 373,820 11,302

FINANCIAL INSTRUMENTS, LIABILITIES BY CATEGORY

At 31 December 2008

Liabilities in the balance sheet Held for trading Book value Book value

Long-term interest bearing liabilities - 746,416 -

Shareholder borrowing - 244,112 -

Derivative instruments, long-term - - 17,638

Syntethtic options and shares 8,452 - -

Accounts payable - 235,898 -

Derivative instruments, short-term 2,027 - -

TOTAL 10,479 1,226,426 17,638

SEK (000's), THE GROUP 2007

ASSETS BY CATEGORY

At 31 December 2007




Derivative instruments 715 - -

Prepaid expenses and accrued income - 54 -

TOTAL 715 367,141 -


At 31 December 2007




Accounts payable - 201,625 -

Liabilities to credit institutions, non-interest bearing - 22,840 -

Derivative instruments, short-term 2,978 - -

Accrued costs and deferred income - 430 -

TOTAL 2,978 1,218,822 -

Financial assets measured at fair value via the income statement

Loan receivables and accounts receivable

Derivatives used for hedging purposes











NOTE 24 FINANCIAL INSTRUMENTS cont .

NOTE 26 INCURRED NON INVOICABLE


Assets in the balance sheet 2008-12-31 2007-12-31 2008-12-31 2007-12-31

Accrued income 251,222 88,624 - -

Invoiced revenue - 133,110 -39,929 - -

Work in progress 75,346 38,996 - -

TOTAL 193,458 87,691 - -

For contracts reported according to percentage of completion accounting method determines the degree of completion in relation to the abandoned assignment charges compared to forecast assignment charges incurred. Information about the total assignment revenue and costs incurred are recorded in the income statement during the period, provided these data were judged sensitive.

SEK (000's), PARENT COMPANY 2008

ASSETS BY CATEGORY

At 31 December 2008


Accounts receivable - -1,084 -


TOTAL - 79,362 -


At 31 December 2008




Derivative instruments, long-term - - 17,638

Syntethtic options and shares 8,452 - -

Liabilities to group companies, non-interest bearing - 22,445 -

TOTAL 8,452 805,677 17,638

SEK (000's), PARENT COMPANY 2007

ASSETS BY CATEGORY

At 31 December 2007



Other receivables - 925 -

TOTAL - 1,929 -


At 31 December 2007




Accounts payable - 814 -

TOTAL - 755,583 -














Stockholm 2 March 2009

Wille Laurén Knut Hansen Henrik Joelsson Jonathan Wallis Chairman of the board

Per Granström Bertil Hallén Karin Nyberg

Ole Kjörrefjord President and CEO

To the annual meeting of the shareholders of EuroMaint Gruppen ABCorporate identity number 556731-5402

We have audited the annual accounts, the consolidated accounts, the accounting records and the administration of the board of directors and the managing director of EuroMaint Gruppen AB for the year 2008. The annual accounts and the consolidated accounts of the company are included in the printed version of this document on pages 3–34. The board of directors and the managing director are responsible for these accounts and the administration of the company as well as for the application of the Annual Accounts Act when preparing the annual accounts and the application of international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act when preparing the consolidated accounts. Our responsibility is to express an opinion on the annual accounts, the consolidated accounts and the administration based on our audit.

We conducted our audit in accordance with generally accepted auditing standards in Sweden. Those standards require that we plan and perform the audit to obtain reasonable assurance that the annual accounts and the consolidated accounts are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the accounts. An audit also includes assessing the accounting principles used and their application by the board of directors and the managing director and significant estimates made by the board of directors and the managing director when preparing the annual accounts and the consoli-dated accounts as well as evaluating the overall presentation of information in the annual accounts and the consolidated accounts. As a basis for our opinion concerning discharge from liability, we examined significant decisions, actions taken and circumstances of the company in order to be able to determine the liability, if any, to the company of any board member or the managing director. We also examined whether any board member

or the managing director has, in any other way, acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion set out below.

The annual accounts have been prepared in accordance with the Annual Accounts Act and give a true and fair view of the company’s financial position and results of operations in accordance with generally accepted accounting principles in Sweden. The consolidated accounts have been prepared in accordance with international financial reporting standards IFRSs as adopted by the EU and the Annual Accounts Act and give a true and fair view of the group’s financial position and results of operations. The statutory administration report is consistent with the other parts of the annual accounts and the consolidated accounts.

We recommend to the annual meeting of shareholders that the income statements and balance sheets of the parent company and the group be adopted, that the profit of the parent company be dealt with in accordance with the proposal in the statutory administration report and that the members of the board of directors and the managing director be discharged from liability for the financial year.

Stockholm 2 March 2009KPMG AB

Fredrik SjölanderAuthorized Public Accountant

Auditors' Report

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www.euromaint.se

EuroMaint AB

SUNDBYBERGLandsvägen 50 A, SE-172 63 Sundbyberg, SwedenVisiting address: Landsvägen 50 A, fl.5 Tel: +46 8-762 51 00

EuroMaint Industry AB

SKÖVDESE-541 87 Skövde, SwedenVisiting address: Kavelbrovägen 2Tel: +46 500-91 70 00

EuroMaint Rail AB

SOLNABox 1555, SE-171 29 Solna, SwedenVisiting address: Svetsarvägen 10Tel: +46 8-762 51 00

Annual Report 2008 - euromaint.org Report 2008.pdf · EuroMaint has been owned by Ratos since 2007...

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Transcript of Annual Report 2008 - euromaint.org Report 2008.pdf · EuroMaint has been owned by Ratos since 2007...