EuroMaint Annual Report 2013EuroMaint Annual Report 2013 5 THE CEO’S COMMENTS full of...

EuroMaintAnnual Report

2013

EuroMaint A

nnual Report 2013

operational activities

Group overview 1

2013 in brief 2

The CEO’s comments 4

Strategic focus 6

Business areas 10

Offering 11

Five-year overview 21

Financial reporting 2013

Directors’ report 22

The Group 24

The Parent Company 28

Notes 32

Auditor’s report 54

The Board of Directors 55

Company management 56

Contents A mAintenAnce pArtner thAt gets the trAins on trAck1

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increAsingly strict requirements for being A sensitive And cost-effective mAintenAnce And business pArtner 4

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four business AreAs with the best interests of the rAilwAy As A common denominAtor10

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customised mAintenAnce offering for rAil pAssenger trAffic And freight trAffic11

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quAlity focus enhAnces euromAint’s position in the mArket6

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A maintenance partner that gets the trains on track

Euromaint is Europe’s largest independent supplier of maintenance services for one of the future’s most important industries – the rail transport industry.

The climate challenges facing society advocate more transport by train. At the same time, the industry is facing challenges in the form of in-sufficient track capacity, lack of confidence from passengers and profit-ability problems. With integrated and customised maintenance solutions, industrialised processes and complete component and spare parts offer-ings, Euromaint is part of the solution to strengthening confidence in the train as a means of transport.

The train operators which choose the company to be a business partner can focus on the overall experience of their passengers. The rolling stock owners who choose Euromaint to be their maintenance partner gain full insight into and control over the status of their rolling stock fleets. The public transport authorities which choose the company’s maintenance solutions can expect the region’s train services to be both more stable and more punctual, while the freight transporters which choose Euromaint can count upon the freight being on track at the right time.

Euromaint is a stable business and collaboration partner. The cus-tomer value created through close cooperation, efficient mainte-nance processes, employees with specialist skills and purposeful quality and safety work will benefit the owner and provide the opportunity to invest in continued development of the offering.

1EuroMaint Annual Report 2013

GROUP OVERVIEW

22 EuroMaint Annual Report 2013

Euromaint offers maintenance of rolling stock to train operators, rolling stock owners, infrastructure contractors and rolling stock manufacturers. The company has more than 25 workshops and mobile service units in five coun-tries. The main geographic markets are Sweden and Germany.

Besides the maintenance of rolling stock for rail passenger and freight traffic, the customers are also offered logistics ser-vices and reprocessing of components. In addition, Euromaint has an offering for players with rolling stock used to maintain railway infrastructure. Customers here include SJ, A-Train, Green Cargo, AAE, VTG, DB (Deutsche Bahn) and Infranord.

Operational activities are run through the subsidiary Euromaint Rail’s four busi-ness areas – Passenger, Freight/Germany, Components and Work Machines. Each business area should create customer value and profitability. Since 2007 Euro-maint has been owned by Ratos AB, a Swedish listed private equity company.


in brief

The first of a total of 55 second class passenger carriages refur-bished for SJ were delivered in February. The refurbishment is taking place at Euromaint’s work-shop in Notviken and is expected to continue until the first quarter of 2014. The project is a continua-tion of the refurbishment of 160 carriages completed by Euromaint in 2009–2011.

In March, RDC Deutschland GmbH signed a contract with Euromaint for the modernisation of two driv-ing trailers and four passenger carriages. Once this work is com-plete all the carriages will form a modern six-carriage train unit for long-distance passenger traffic in Germany. The contract also gives RDC Deutschland the option of ordering the modernisation of two more six-carriage train units.

In June, the Jernbaneverket Bane Energi division showed its confi-dence in Euromaint once more by engaging the company to refurbish and modernise three train operation converters. Euromaint has taken on the overall responsibility, which means everything from refurbish-ment at the workshop to commis-sioning the converters at the power converter station and arranging the logistics for the assignment.

2013

EuroMaint in two minutes

GROUP OVERVIEW

net revenue 2009–2013SEK millions

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2,5102,814 2,860

2,484 2,416

The average annual growth for 2009–2013 was –0.7 per cent. Weak market development, stiff competition and pressure on prices have affected Euromaint’s revenue trend.

Earnings have been documented on an “as if” basis for 2010–2013. For the basic data for the graphs, information on the “as if” basis and additional key ratios, please refer to the five-year overview on page 21.


infrastructure providers Responsible for track and overhead lines FreightPassengers

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

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

Train operators for freight traffic and

freight wagon owners

Train operators and rolling stock owners for passenger traffic

infrastructure contractorsMaintain track and lines for

infrastructure providers


In June, Euromaint’s workshop in Landskrona became the first in Sweden to be ECM certified for maintenance of freight wagons designated for hazardous goods. The certificate, which applies to the maintenance of freight wag-ons, also includes the mainte-nance of tank wagons and other freight wagons designated for hazardous goods.

In June, after four years with Euro-maint as its partner, SL decided to extend its contract with the com-pany for maintenance of work

machines. The contract runs until November 2015.

In July, Euromaint was commis-sioned by SJ to maintain the roll-ing stock that operates the route between Sala and Linköping. The assignment covers both preven-tive and corrective light mainte-nance, including the provision of materials for 11 vehicles – four Regina trains and seven X12 trains. Since 15 December 2013 this maintenance has been carried out at Euromaint’s workshop in Linköping.

At the start of 2014, Euromaint was commissioned by Tågkompaniet (TKAB) to carry out maintenance on the Regina trains TKAB oper-ates on behalf of X-trafik from 15 June 2014 up until 2024. This maintenance will be carried out at Euromaint’s workshop in Gävle. Euromaint has already worked with TKAB on Tåg i Bergslagen, and in the last few years has been awarded several maintenance contracts for Regina trains.

GROUP OVERVIEW


THE CEO’S COMMENTS

increasingly strict requirements for being a sensitive and cost-effective maintenance and business partner Our improvement work and focus on quality have given results. This is pleasing, especially when it is considered that what we do is important. Together with other players in the industry, we work to make companies and private individuals choose to use the train. Euromaint is part of the solution.

the train – a clear place, even in the futureThe train is important. In an increasingly global and urban world, the train should have a more clear place. The position as the most environmentally friendly means of transport is a fantastic opportunity and the solution to many transport and environ-mental problems. At the same time, the train faces major challenges and confidence in the train as a means of transport is low. For us to overcome this, industry players have to work together to increase the reli-ability and attractiveness of the train. By carrying out high-quality maintenance on time, Euromaint is part of the solution.

EuroMaint’s independence – a market advantageTo a certain extent the market is still influ-enced by its history. Yet more and more people are discovering our strengths and realising that Euromaint wins business on its own merits despite stiff competition. In Germany we are viewed as a modern, trail-blazing alternative. We inhabit a relatively unique position. Thanks to our indepen-dence in relation to rolling stock manufac-turers and operators, the customer can feel reassured that we are acting in their interest.

Market situation remains toughAfter a difficult start to the year with the loss of a contract for Norrlandståg, 2013 pro-duced many important orders for Euromaint. During the year we signed contracts with, among others, SJ for maintenance of the rolling stock operating Sala–Linköping, we received an extended commission from A-Train for maintenance of Arlanda

Express, and SL chose to continue to place its maintenance of work machines with us, to mention just a few agreements.

Despite this, the pressured market situ-ation had a tangible effect on Euromaint in the autumn. Some of our existing customers decided to change their main-tenance strategy and cut back on mainte-nance or chose to carry it out themselves. This situation resulted in us having to review our staffing levels. Redundancies were announced in Luleå, Åmål and Örebro, as well as at the head office in Solna, with these mainly affecting admin-istrative staff. This cutback in staff began at the end of the autumn and will continue throughout 2014, assuming that market conditions remain the same.

In Germany we have experienced diffi-culties on the freight side as this is sensi-tive to the state of the market. This has led to staff cutbacks. Alongside this, the passenger side in Germany has developed positively. I see major potential in this area.

2013 has been characterised by contin-ued weak conditions, primarily on the freight side of the German market, which had an adverse effect on our profit. Revenue fell by 2.7 per cent and amounted to SEK 2,416 million (2,484). This fall is explained by the economic trend in Germany. Our operations in Sweden grew by 2.3 per cent. The oper-ating profit (EBITA), adjusted for expenses affecting comparability, was SEK 67 million (90). This is not in line with our targets.

Many important procurement procedures in the next few yearsAlthough the industry is currently going through a difficult time, the rail market is

“By carrying out high-quality mainte-nance on time, Euromaint is part of the solution.”


THE CEO’S COMMENTS

full of opportunities, especially for Euro-maint. When investments are made in new trains, this creates a business opportunity for us. What’s more, there are many trains that need to be overhauled or refurbished so they can remain in service for a few decades more. 2014 is the start of some very exciting years with new players in the market and many comprehensive con-tracts being put out for tender. I believe that we are well prepared for this.

Available trains – our most important taskOur most important task is to ensure that the trains are available and delivered clean, safe and well maintained to the customers as scheduled. We have continued to work methodically and with a long-term perspec-tive to continuously improve the quality. Developing our industrial maintenance process and improving our planning have played a central role in this work and have taken place as part of an excellent and close collaboration with our customers.

Together we have achieved success. Increasing numbers of trains are being delivered on time because more and more trains come into the correct workshop on time where the correct components and spare parts are already in place. We have a good planning process, but we are not satisfied; we are continuing to develop it so that we can further increase the quality of our customers’ rolling stock.

investments to meet customer needsWe have also made investments to enhance our attractiveness. Many cust-omers are influenced by the market situation and are examining their costs. The require-ments for the utilisation ratio of the rolling stock are getting even stricter. A new busi-ness system being implemented in the first half of 2014 will further raise the qual-ity of the maintenance. We have also invested in our bogie workshop in Örebro, and from the halfway point of 2014 the lead time for reprocessing of a bogie will be

more than halved, from 15 to just seven days. As a result, Euromaint is establishing the most attractive reprocessing offering in Sweden. We have put ourselves in an excellent position to win new business.

Quality to remain the top priorityWe entered 2013 with the ambition of developing our existing contracts in order to create added value for our customers, winning new contracts and continuing to develop positively. Thanks to the enthusi-astic commitment of our employees, we have made good progress but our focus on quality improvements will continue to have the highest priority for the foresee-able future. We must always be the best at everything we do in order to be part of the solution.

Solna, February 2014

ove BergkvistPresident and CEO


STRATEGIC FOCUS

Quality focus enhances Euro-Maint’s position in the marketThe clear direction established by Euromaint means that the company is fully focused on delivering high-quality maintenance solutions so that all trains maintained by the company are on track and in service when they are supposed to be. The objective is to secure the company’s position as the leading maintenance player in Sweden and to grow in Germany.

In 2013 there were approx. 200 million railway journeys in Sweden, or an average of over half a million train journeys per day. Alongside this, approx. 65,000 tonnes of freight were transported on Swedish rail-ways. The passengers expect the train to be a comfortable and safe method of trans-port, while the freight transporters set strict requirements for delivery reliability. Punc-tuality and safety are essential when it comes to both passenger and freight transport.

A lack of punctuality means high costs to society as well as the risk that the next journey or transport will take place by another method of transport than rail. Euromaint is part of the solution. But effi-ciently run train services need all players to do their job. Euromaint’s role is to ensure that the trains are well-maintained and that they are on track and in service when they are supposed to be.

the economy affects the need for maintenanceThe maintenance market for rolling stock is affected by the development in traffic. In Sweden, rail passenger traffic has grown on average by 1.1 per cent per year for the past few years. This is a level of growth that Trafikverket expects to continue, as outlined in its forecasts for the work on the national transport plan 2014–2025. According to Eurostat, rail passenger traffic in Germany grew on average by 2.8 per cent in the period 2009–2012. The assessment here is also that the rate of growth seen in recent years will continue in the years ahead. In 2012, freight traffic, which varies to a greater extent according to the state of the econ-omy, was at the same level as in 2009 in both Sweden and Germany. The weak market development means that Euromaint’s customers must balance strict requirements

for safety and punctuality against profita-bility issues and pressured budgets. One example of this is that in recent years DB has reduced its number of freight wagons as well as changing its maintenance strategies.

long contractsIn Sweden and Germany alike, the major-ity of the rail passenger traffic is put out to tender by a public transport authority or equivalent in a certain region. In a procure-ment process the operators must be able to demonstrate that they can achieve the traffic targets. An important aspect here is having well-maintained trains. The contract periods for traffic services put out to tender are often long. In Sweden the contracts for procured traffic normally run for between five and 10 years. In Germany, the contract periods are even longer and may run for up to 20 years. Because the contract periods are long, several years can go by without any major maintenance assignments being put out to tender. This means that winning or losing a procurement process has a far-reaching effect on Euromaint’s operational activities. Before 2017, around 10 major maintenance contracts in Sweden worth the equivalent of SEK 1.4 billion in annual revenue will be put out to tender.

Vision

MissionRotterdam

DuisburgAntwerpen

Wolfsburg

LeipzigDelitsch

Wustermark

Stockholm

Jelgava

MalmöLandskrona

Göteborg

ÅmålLinköping

HallsbergÖrebroVästerås

Gävle

Sundsvall

Vännäs

Luleå

Falköping

Borlänge

Kaiserslautern

Oberhausen Ingolstadt

Euromaint is a Swedish company with an international offering and operational activities in five European countries. These operational activities are represented by more than 25 workshops and mobile service units in Belgium, Latvia, the Netherlands, Sweden and Germany. The offering is pan-European but the main markets are Sweden and Germany.

Euromaint’s presence Workshop Service station Mobile maintenance only


STRATEGIC FOCUS

Strong competition means high efficiency is essentialDepending on geographic market and seg-ment, Euromaint faces different types of competition. Some competitors are small, local niche companies, while others are major international players with a complete offering or operators with their own work-shops. The latter are mainly present in Germany, where many operators choose to handle parts of the maintenance themselves. Euromaint’s internal change work is pri-marily about continuously improving the quality of customer deliveries. This allows for further efficiency measures and greater competitiveness in a market characterised by stiff competition and pressure on prices. To meet the expectations of the customers, owners and other stakeholders, Euromaint has defined four focus areas: stability, image, profitability and growth.

Clear quality improvementsTo both maintain existing business and win new contracts, Euromaint must be a reliable partner and run a stable business with high quality and delivery reliability. Regardless of size, every single assignment is important. We aim to have contracts extended after the original one expires and to win new contracts with existing and new customers thanks to our proven quality.

Planning is a basic prerequisite for a successful maintenance process. Euro-maint works closely with its customers to develop solutions that reduce the time that the trains are out of service. These days there is not always spare capacity in the form of locomotives, wagons or car-riages and high-value components such as wheels, bogies and traction motors. As a consequence, the rolling stock must be maintained as efficiently as possible with-out compromising on quality or safety. In

light of these factors, Euromaint ensures that the correct resources are in place to deliver reliable maintenance solutions in an effective manner throughout the assignment period.

The improvement work that has been carried out has produced clear results. In recent years the delivery quality and avail-ability for e.g. the SJ2000 has stabilised at an increasingly higher level. In practice this means that the trains have been available for use in line with the set maintenance plans. This has been achieved thanks to the close partnership between Euromaint and SJ and due to the systematic internal cooperation and ongoing dialogue.

A decision on an important investment in a new business system was taken dur-ing the course of the year. This will mean advantages and efficiency gains within both production and administration, such as more streamlined and more secure

Essential for everyone to take responsibility“We’ve discussed our core values in our group. As far as I’m con-cerned, it’s important that these are not just a few words that we learn; we actually need to link them to our day-to-day work. Both how we interact colleague to colleague and when it comes to the working environment as a whole. We work in an exposed environ-ment and I want to feel safe even though I spend most of my working hours out on the tracks. But perhaps the most important thing of all is that everyone has to take responsibility for us deliv-ering safe trains on time to the customer. I usually compare it to if I were to take my own car in for a service I’d want to be sure that I’d get it back at the promised time.” Emma Thörnqvist, maintenance engineer at Euromaint’s workshop in Hagalund


STRATEGIC FOCUS

Cooperation for greater availability“Euromaint has established a close working relationship with SJ where the common goal is for the SJ2000 trains to have high availa-bility so that as many people as possible will choose to travel by high-speed train. There should also be room for flexibility in the form of expanded capacity when demand is even higher, e.g. at Christmas and Easter and during major events. So that Euromaint and SJ have the same view of the current rolling stock situation and are able to discuss e.g. the expansion of train services, the two parties perform a reconciliation each week. Thanks to open dialogue and close cooperation, key ratios and availability are at an increasingly stable level. Euromaint’s target is to ensure that the maximum number of rolling stock units is available for use every day.” Stefan Bengtsson, business manager at Business Area Passenger, Euromaint Rail

ordering and purchasing procedures within the provision of components and spare parts, as well as easier access to information for maintenance staff and for the financial follow-up of assignments – from order to invoice.

Presenting a strong image of EuroMaintThe view of Euromaint varies. In Sweden in some cases the memory remains of the company’s time as part of a state-run monopoly, while in Germany the company appears to a greater extent to be a welcome and modern alternative. Changing the image of a company is a long journey that always starts from inside the company itself. Being sensitive to customer expec-tations and delivering to meet these are crucial to being viewed as an attractive business partner. Euromaint’s journey from being perceived as part of the state system to being a competitive, privately owned business in a fully competitive market is driven in part by a long-term internal assessment and culture change project. The customer promise has also been defined as quality, delivery and innovation.

Maintenance of trains requires the employees to have high-level and specific

specialist skills. All work tasks involved in the maintenance process are necessary to ensure the quality and safety of the delivery and thus customer satisfaction too. This means the employees constantly have to challenge themselves and regularly com-plete the internal rolling stock and safety training programmes that qualify them and also make them available for new assign-ments.

A broader internal training programme has been introduced in order to keep rais-ing quality and knowledge levels through-out the company. The objective here is to increase the insight into and understanding of how everything fits together. The train-ing, which is held in groups and led by internal experts in fields such as econom-ics, quality and change work, will continue during 2014.

The past year has also seen the intensi-fication of work within CR and sustainabil-ity. The priority areas for Euromaint are environment, quality and safety. A code of conduct governing how Euromaint acts and expects others to act both internally and externally has been introduced at the company. The objective for not only the ongoing change work but also the CR work is to reduce the risks at the company and

also boost confidence in Euromaint in the market.

tough market situationTo be a stable business partner, a forward-looking employer and to generate a good return for the owner, the objective is to create profitable growth, maintain good control of costs and deliver strong cash flows. Euromaint aims for growth with profitability, where profitability is given priority. Euromaint’s overall profitability target is to achieve an annual EBITA margin of 10 per cent in the long term.

The economic situation signifies profit-ability problems for the entire industry, which means that Euromaint’s profitability is not satisfactory. The EBITA margin was 1.0 (2.4) per cent. The market situation is characterised by greater competition and pressure on prices. This has been particu-larly noticeable when it comes to Euro-maint’s maintenance of freight rolling stock in Germany. The saving measures initiated in 2012 and which were continued in 2013 are producing gradual results. These measures concern efficiency improvements, primarily within administrative functions. During the year Euromaint has also shut down operations at a workshop in Germany.


STRATEGIC FOCUS

CORE VALUES

Cooperation

Taking responsibility

Contributing

Reliable

CUSTOMER PROMISES

Quality

Delivery

Innovation

new business opportunities in sightEuromaint’s objective is to grow in the Nordic countries as well as in the rest of Europe, organically and through acquisi-tions. Through continual change work and a constant focus on quality, Euromaint is creating a stable platform for winning important contracts that will be put out for tender in the next few years.

The weak development in rail passenger traffic and rail freight transports in both Sweden and Germany has continued to have an effect on the company’s growth prospects. The year also saw a few large procurement processes in the market. Net revenue fell by 2.7 per cent during the year. The opportunities for growth in the next three-year period are in Sweden and the other Nordic countries for the business areas Passenger, Components and Work Machines. The procurement situation for the Passenger business area in the next few years appears to be relatively positive with around 10 major procurement pro-cesses due in Sweden. An important invest-ment is being made in the Components business area’s bogie workshop in Örebro.

This refurbishment means the time to complete a bogie overhaul will be more than halved from 15 to an average of seven days. A clear sign that this investment is timely is that the market is showing an interest in the benefits produced by shorter lead times for bogie maintenance even before the workshop has been put into service.

Euromaint also has great potential for winning new business within maintenance of passenger rolling stock in Germany. A large number of multiple units, EMU/DMU trains (Electric Multiple Unit and Diesel Multiple Unit), will be overhauled in the coming years, and this is an area where Euromaint has a strong offering. Fleets of brand new passenger rolling stock will also be put into service in the next few years. Warranty assignments, i.e. correct-ing major faults on this rolling stock within the warranty period, will also involve fur-ther business opportunities for the com-pany in the German maintenance market. Euromaint’s ambition is to capitalise on the benefits that will be brought about by its position as the leading private and independent player in Europe.

net revenue 2009–2013SEK millions

Net revenue from Euromaint’s Swedish operations increased by 2.3 per cent in 2013 compared to last year. At the same time, net revenue from the rest of Europe in 2013 fell by 17.5 per cent. The average annual growth for 2009–2013 was –0.7 per cent.

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Equity/assets ratio 2009–2013Per cent

The equity/assets ratio increased from 33 per cent to 39 per cent during the year.

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EBitA margin 2009–2013Per cent

The EBITA margin fell from 2.4 per cent to 1.0 per cent. The continued weak market in Germany has had an adverse effect on earnings despite the efficiency improve-ments implemented at the German operations. During the year Euromaint has also cut back on staff within administrative functions as well as announcing redun-dancies at the Swedish operations.

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BUSINESS AREAS

Four business areas with the best interests of the train as a common denominatorEuromaint conducts operations in four business areas whose task is to create maximum profitability in each part of the total offering. The common denominator is that those with the same core values and customer promises work towards achieving long and value- creating partnerships with customers active within the rail transport industry.

Business Area PassengerThe business area offers a complete maintenance concept to train operators, rolling stock owners and public transport authorities. The customers can purchase either all or parts of the maintenance offering, everything from light maintenance to full service commitments, including reprocessing and overhauls. The business area normally operates with full ser-vice commitments, with a payment model based on the customers’ rolling stock being available for traffic. In practice, this sees the customers paying according to the number of kilometres travelled by the trains, which means that the common goal of Euromaint and the customers is for the rolling stock to be used in traffic. The business area is also respon-sible for the Swedish offering within maintenance of rolling stock for freight traffic.

number of employees on 31 Dec: 934 (1,036)

Business Area Manager: Henrik Dagberg

Examples of customers: A-Train, AAE, Green Cargo, MTR, SJ, Tågkompaniet, Västtrafik, Öresundståg

Workshops/facilities: Borlänge, Falköping, Gävle, Göteborg, Hallsberg, Landskrona, Linköping, Luleå, Malmö, Stockholm, Sundsvall, Vännäs, Västerås

Business Area Freight/GermanyThe business area has a comprehensive range of maintenance services for freight rolling stock and an offering under development for rail passenger rolling stock in the German market. The offering covers planned and remedial maintenance (both in the workshop and by mobile units) as well as overhauls, refurbishments and reprocessing of compo-nents. The planned maintenance is based on framework agreements that define the actions to be carried out in accordance with an established maintenance plan. Remedial damage maintenance is carried out either against tender or on a running account basis. Major and more far-reaching actions, such as overhauls and refurbishments, always follow established maintenance plans.

number of employees on 31 Dec: 849 (968)

Business Area Manager: Robert Lehmann

Examples of customers: AAE, Aretz, BASF, DB, Ermewa, GATX, Nacco, TWA, VTG, Wascosa

Workshops/facilities: Delitzsch, Duisburg, Ingolstadt, Kaiserslautern, Leipzig, Oberhausen, Wolfsburg, Wustermark, Antwerp, Rotterdam

Business Area ComponentsThe business area offers reprocessing of components and complete material supply to all types of customers in the rail transport industry, everything from sourcing and stock-keeping to intelligent logistics solutions and the sale of spare parts. As a logistics sup-plier, the business area generates income from contracts that can cover parts of the supply chain or complete responsibility for the supply of spare parts and reprocessed compo-nents. The business area not only maintains a large number of customer relationships with train operators and other maintenance companies, it also fulfils the role as supplier to Euromaint’s other business areas with regard to reprocessing of components and provision of spare parts. The business area has its own warehouse stocking approx. 55,000 items for maintenance of rolling stock.


Business Area Manager: Ingela Erlinghult

Examples of customers: Alstom, Arriva, Bombardier, Inlandsbanan, JBV, Metro, Transitio, TRV, Tågab, other business areas within Euromaint

Workshops/facilities: Jelgava, Åmål, Örebro

Business Area Work MachinesThe business area offers a complete maintenance programme for machines and tools used for maintenance and construction of the railway infrastructure, such as track and overhead lines. The business model usually consists of framework agreements that contain fixed actions, which are usually sub-ordered by the customer, as well as service packages based on the machines’ running hours. Corrective maintenance and mobile maintenance are carried out either against tender or on a running account basis.


Business Area Manager: Gustav Jansson

Examples of customers: Jernbaneverket, SL, Strukton

Workshops/facilities: Stockholm, Åmål

Customised maintenance offering for rail passenger

traffic and freight trafficQuality and safety are always focal points at Euromaint.

Providing high-quality maintenance is about the custom-ers’ rolling stock always complying with all statutory require-

ments for traffic safety. In addition to this, Euromaint wants to create the conditions for more passenger and freight transports by rail by ensuring availability and reliability.

Specialist skills and industrialised processes guarantee the customers maintenance solutions with a high level of quality and safety. As far as the customer is concerned, this means that they have control over which rolling stock units are available for traffic and thus can plan their operations and ensure punc-tual departures and arrivals. This also means the customers can be certain their rolling stock is railworthy. The maintenance offering covers everything from light maintenance, according to the customer’s traffic flows, to heavy maintenance such as overhauls, as well as the reprocessing of components and material provision. This makes Euromaint the obvious busi-ness partner – regardless of whether the customer is active within passenger or freight traffic or maintains infrastructure for the railway.

The company also offers reprocessing of components, spare parts and logistics services to all players in the rail transport industry. Besides maintenance of rolling stock for passenger traffic and freight traffic, the company has a targeted offer-ing for rolling stock maintenance aimed at companies which maintain railway infrastructure such as track and overhead lines and which also carry out towing and clearing.

Euromaint is Europe’s largest maintenance partner independent of rolling stock manufacturers and train operators. As a result of this, the company has no loyalties other than giving every customer the most qualitative and cost-effective maintenance solution.


OFFERING


OFFERING | PASSENGER TRAFFIC

A complete maintenance concept increases availabilityEuromaint offers a complete maintenance concept for rail passenger traffic. Maintenance solutions adapted to the needs of the rolling stock and the customers are developed in close collaboration with the customers. This often involves a full service commitment where Euromaint takes responsibility for the maintenance and receives payment based on the num-ber of kilometres the trains travel. This payment model means that both Euromaint and the customers are successful when the customers’ rolling stock units are available for traffic.

optimised maintenance solutions for greater rolling stock availabilityAll rolling stock has a maintenance plan. This indicates what maintenance is to be carried out and when. The starting point for Euromaint’s optimised maintenance concept is to customise a maintenance solution based on the customer’s traffic and the current maintenance plan for their rolling stock. In the first instance the maintenance is governed by the times of the day when there are few journeys and the need for available rolling stock is lower. The interventions are adapted to the quality and safety requirements defined for the assignment.

Factors that play a role include where the rolling stock’s operating pauses are scheduled and where the workshops are located, when and how long the trains can be available for maintenance, and other

specific requirements set by the customer. The customer may, for example, request mobile maintenance patrols at strategic end stations which carry out comfort-related actions to ensure a comfortable and positive travelling experience for the passengers.

Euromaint develops and regularly opti-mises the maintenance plans for the fleets of rolling stock which the company is con-tracted to maintain. The objective is to increase the availability and improve the efficiency for both parties. The company’s long experience of train maintenance, combined with regular analyses of the pattern of faults that arise, the real operat-ing environment of the rolling stock and the maintenance carried out, means the customers can be reassured that their rolling stock maintenance develops throughout the contract period.

Rolling stock must be delivered according to scheduleEuromaint constantly develops its indus-trialised maintenance process. The foun-dations for this are always a clear and common planning of maintenance work. When the trains come into the workshops as scheduled, the correct spare parts, components, tools and staff are already on site to carry out the planned maintenance action. This produces greater efficiency and quality. The objective is for the cus-tomers’ rolling stock to be back in service as planned. Ultimately it is a question of ensuring punctuality and safety for pas-sengers and improving profitability for the customers and Euromaint alike.

When more extensive preventive main-tenance actions are necessary, the work may be divided into smaller tasks that are carried out over several planned workshop visits. In this way, the actions can be carried

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

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

• Maintenance documentation • Design actions • Expertise • Physical conditions

Spare parts

Rolling stockin traffic

ComponentsWorkshop

Long-term planning



nothing can go wrong en route to the airportFrom the centre of Stockholm to Arlanda Airport in 20 minutes. And a new ticket if the train is more than two minutes late. That is the Arlanda Express promise to its customers.

Speed, punctuality and comfortable travel are vital competitive advantages for Arlanda Express, which every year has 55,000 depar-tures between the centre of Stockholm and Arlanda Airport.

“I always take the Arlanda Express. It’s quick and I’ve never had a train be cancelled or not arrive on time,” says Ulrika Morgenstern, a passenger who often flies from Arlanda.

Arlanda Express is owned and run by A-Train AB, whose greatest challenge is described as “in all situations giving the customers what they’ve been promised – a punctual, fast and environmentally friendly journey that always takes place”. This makes heavy demands on Euromaint, which has been taking care of the rolling stock maintenance since 2005.

The contract was renewed recently and Martin Byström, Technical Director at A-Train, explains what he is especially pleased with:

“For us to be able to keep our customer promises, there must be service-mindedness in all links of the chain, even at our suppliers, and we think that is the case at Euromaint Rail. We’ve had extremely high availability for our trains and a good relationship with both the people actually carrying out the mainte-nance and those at management level.”

A-train’s challenge: Punctual, fast and environ-mentally friendly journeys that always take place.

EuroMaint’s solution: Preventive and remedial maintenance, plus overhauls and supply of materials.

Customer value: Complete and punctual trains in service.



EUROMAINT’S CUSTOMERS WITHIN MAINTENANCE OF PASSENGER TRAFFIC ROLLING STOCK

out during the ordinary operational pauses, which increases the time the train can be used in traffic.

Corrective maintenance to remedy faults and deficiencies is, where possible, carried out during planned visits to the workshop or in connection with preventive mainte-nance.

Remote monitoring creates added value for customers Remote monitoring of different train systems is one of the tools utilised by Euromaint to create added value for its customers. The Remote Vehicle Monitor-ing (RVM) system means that Euromaint, via a real time connection to the train computer, can obtain information about fault indications and the train’s geograph-ical position. This information is analysed by experienced fault tracers and rolling stock engineers who determine what should be done, either immediately or

in conjunction with the next planned visit to the workshop.

Remote monitoring makes it possible to plan the action and order material in advance, even though the rolling stock has not been checked for faults before it arrives at the workshop. This reduces the time the train spends at the workshop and makes the maintenance more efficient. With the customers quickly receiving relevant status information about the prioritised mainte-nance needs of their rolling stock, the train services can be planned in a better way and provide useful support for the driver and other staff onboard.

Efficient component and material supplyEuromaint offers a complete component and material supply service to its custom-ers. The offering includes sourcing, stock-keeping, comprehensive logistics solu-tions and a unique range of spare parts.

Euromaint’s purchasing organisation already has established relationships with important manufacturers and subcontrac-tors. This means that the company creates cost benefits when purchasing spare parts. The company also offers reprocessing of high-value components such as wheels, bogies and traction motors. Aided by a well-established logistics system, the correct components and spare parts are delivered to each workshop for planned maintenance work.

Safety in focusSafety awareness is high at Euromaint. Certain elements of the maintenance work are carried out in demarcated areas, where entry is restricted to authorised maintenance staff. In the zone, mobile phones are banned and talking with the engineers while they are inside is not permitted. Traceable, registered torque wrenches are used to tighten the bolts connected to the axletrees. This gives certified proof that every bolt has been tightened to exactly the correct torque.

Passenger traffic offering in GermanyIn Germany, Euromaint’s offering has concentrated on overhauls and refur-bishment of passenger carriages. In the coming years, the need for overhauls of multiple units (EMU and DMU trains) will increase.

Euromaint also offers what are termed roll-out services, which involves the com-pany completing and fine-tuning passenger trains for delivery, on assignment from the train manufacturers. A German main-tenance offering for passenger traffic in line with the Swedish maintenance concept is currently under development. The fact that Euromaint also carries out warranty actions on assignment from the train manu-facturers is a strength since new trains are now about to be brought into service.

Kundportal

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

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

When the train comes in, the work has been prepared and the action time can be reduced.

Euromaint makes a diagnosis, books the train in for maintenance in dialogue with the customer, and prepares actions.

Customer portal

EuroMaint

EuroMaint workshop

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

4

6

5

1

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

3

GSM

• see the utilisation ratio• see improvement proposals• engage in dialogue on rolling stock• obtain positional information to facilitate traffic planning• see key ratios.

The data is forwarded via RVM.

2



Punctuality demands reliable rolling stockSince December, Euromaint has been in charge of the maintenance of SJ rolling stock operating the Sala–Linköping route. “We’re very pleased so far; the availability has been good,” says Johan Rydén, a roll-ing stock engineer at SJ.

Safe, comfortable, sustainable journeys that represent value for money and arrive at the final destination in all situations. That is SJ’s promise to its customers. One of the major challenges at the moment, which SJ shares with the Swedish Transport Administration and other train operators, is improving punctuality.

“This is something we’re working really hard on together, and having railworthy and

reliable rolling stock is a vital element of that work. We chose Euromaint because they have extensive expertise within the railway industry and an established network of sub-contractors. We also have good experience with them elsewhere in Sweden where they maintain both our SJ2000 train units and InterCity trains,” says Johan Rydén.

Ahead of this assignment Euromaint used its NPI process, New Product Introduction, which step by step describes what needs to be done before new pieces of rolling stock are taken to a workshop and also how the maintenance should be handled once it is up and running.

“By keeping an eye on all elements before a contract starts, we can guarantee trouble-free production that maintains high quality right from day one,” says Ketil Torp, con-tract manager at Euromaint.

SJ’s challenge: Safe, comfortable, sustain-able journeys that repre-sent value for money and take the passengers to their destination.

EuroMaint’s solution: Preventive and corrective maintenance, including material supply, with well-defined processes as back-up.

Customer value: Railworthy and reliable trains every day.


OFFERING | FREIGHT TRAFFIC

A strong position providing customer benefitsWith a network of workshops covering large areas of Germany and a presence in important ports in the Benelux region, combined with the Swedish workshops, Euromaint can follow freight wagon owners from Luleå in the north to Oberhausen in the south. This gives the com-pany advantages in the European market for maintenance of rolling stock for freight traffic.

Euromaint has a comprehensive range of maintenance services for rail freight traffic. Maintenance of freight wagons involves a relatively small proportion of preventive actions. Generally speaking the overall maintenance plan sees the freight wagons undergo a major overhaul every three to seven years. However, some wagon owners and operators like their wagons to be inspected regularly, for example on an annual basis, to reduce corrective maintenance. Yet most mainte-nance on freight wagons consists of cor-rective actions such as replacing brake blocks or damaged wheels.

Mobile maintenance an increasingly important factor Mobile maintenance has become an increasingly important part of the total maintenance solution for freight rolling stock. This involves remedying faults and damage directly on site whenever possible. This increases availability. The operator which owns or leases the wagon can thus be confident that the wagon is in service as much as possible. If the maintenance partner can offer service on site, the stop-page will be significantly shorter than if the wagon has to be transported to a workshop.

Mobile maintenance is important, particularly in northern Sweden where it can be a long way to the nearest work-shop. Euromaint has developed several different mobile maintenance solutions for supplying help alongside the track, or on site with the customer in ports and at

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

This complete offering means the cus-tomers can reduce the number of mainte-nance partners, resulting in more efficient administrative processes and follow-up.

SwedenEuromaint has a complete range of main-tenance services for corrective maintenance and overhauls as well as the reprocessing of components. Maintenance and refur-bishment of freight locomotives are also offered in Sweden. This means that the company’s offering for rail freight traffic is unique in comparison with its rivals which maintain either locomotives or freight wagons.

In Sweden, overhauls of freight wagons are carried out at the workshops in Lands-krona and Luleå. The company has exper-tise and experience, regardless of whether the overhaul concerns wagons for bulk transports, tank wagons or container car-riers. This is combined with an attractive offering for the refurbishment of freight wagons. This could, for example, involve a freight wagon for transporting steel

being adapted to transport timber instead. What’s more, during the year the company was the first in Sweden to gain ECM certi-fication for maintenance of rolling stock designated to transport hazardous goods.

One example of the company’s exper-tise in refurbishing freight locomotives is the four model T46 terminal locomotives that are being refurbished on behalf of LKAB. Refurbishments are extensive assignments that set stringent require-ments for expertise and experience, since they often involve rebuilding a locomotive from the ground up.

Germany and the rest of EuropeEuromaint’s operational activities in Europe are based at the company’s work-shops in Germany, which focus on over-hauls and reprocessing of components. At the Kaiserslautern workshop, repro-cessing of high-value components such as couplers, bumpers and draft gear is also offered.

EUROMAINT’S CUSTOMERS WITHIN MAINTENANCE OF FREIGHT TRAFFIC ROLLING STOCK


OFFERING | FREIGHT TRAFFIC

Efficient maintenance for wagons in good conditionThe French company Nacco S.A. leases freight wagons and tanker carriers. For Nacco to build long-term relationships with its customers, efficient wagon main-tenance is required.

Nacco is a major lessor of wagons in the European market. Euromaint’s workshop in Landskrona carries out overhauls on virtually all of Nacco’s wagons in Sweden.

“Our customers want to have good, quick service if anything happens to the wagons they rent from us. Not only are Euromaint quick, they live up to their promises,” says Bo Engdahl, salesman at Nacco.

Euromaint’s objective is to always keep promises and carry out efficient train main-tenance.

“Good planning and dialogue with the cus-tomer provide the right conditions for deliv-ering good maintenance,” says Ulf Norberg, contract manager at Euromaint.

Nacco’s tank wagons transport substances such as ammonia, propane and other chem-icals. It is important that the workshop doing the maintenance on these wagons is correctly certified.

“Our maintenance partners have to keep accurate documentation and be certified. They also have to possess a bit more exper-tise and experience when working with tank wagons, and Euromaint’s certified workshop in Landskrona meets all our requirements,” says Bo Engdahl.

nacco’s challenge: Leasing wagons which are always in good condition.

EuroMaint’s solution: Overhauls plus corrective maintenance as and when necessary.

Customer value: Efficient maintenance of the right quality providing available and reliable wagons.


OFFERING | COMPONENTS AND SPARE PARTS

Advanced component and material supplyEuromaint reprocesses components and offers material supply for all types of rolling stock. The company is the largest in Sweden in terms of reprocessing of components such as bogies, wheels, traction motors and power converters.

Maintenance that keeps rolling stock on trackAvailability is essential for rolling stock in service. Through an integrated approach to component replacement in connection with light maintenance and overhauls, the throughput time for rolling stock at the workshop is reduced. Components are removed and replaced with new repro-cessed components and the rolling stock unit can leave the workshop.

Reprocessing work includes wheels, bogies and traction motors, transformers and generators as well as electronic components and smaller motors. The removed components are cleaned, main-tained and repaired. After completed reprocessing, the components are placed in a component warehouse ready to be installed in the next piece of rolling stock. We have a well-developed system of replacement components for the vast majority of rolling stock in operation. This means that the lead time never need be longer than the time it takes to replace the component. In addition to compo-nent maintenance for rolling stock, main-tenance of train power converters is also offered.

identical quality at a lower costThe technique of taking a finished prod-uct and preparing detailed drawings and specifications of how the product is con-structed and works is called reverse engi-neering. Euromaint takes this approach in order to reduce lead times, ensure access to materials that might not be manufac-tured any more, cut costs and increase supplier independence. Euromaint there-fore recreates design documentation for priority spare parts and replacement com-ponents. This documentation is used to produce parts of identical quality but with shorter lead times and at a lower cost than the original. This approach requires a high level of traceability and Euromaint has created a process which assures the quality of every single element and mate-rial used throughout the work flow. The replacement of original materials does not take place until this has first been approved by the customer.

Customised material supplyEuromaint offers around 55,000 stocked spare parts and around 45,000 items made to order for rolling stock. Customers are supplied with spare parts in the right

place at the right time and at the right price from the central warehouse in Örebro and other strategically located service warehouses.

Euromaint’s purchasing and logistics system is adapted to the rail transport industry. The company has built relation-ships with the most important manufac-turers and subcontractors and has both the knowledge and the volumes required for effective purchasing and logistics pro-cesses.

EUROMAINT’S CUSTOMERS WITHIN COMPONENT MAINTENANCE AND PROVISION OF SPARE PARTS


OFFERING | COMPONENTS AND SPARE PARTS

High-quality reprocess-ing of componentsCompetitive pricing, short lead times and the high quality of the finished work were three strong reasons for Transitio choosing Euromaint to be its maintenance partner for reprocessing of automatic couplers.

Competitive pricing, short lead times and the high quality of the finished work were three strong reasons for Transitio choosing Euromaint to be its maintenance partner for reprocessing of automatic couplers.

Transitio finances, procures and manages rolling stock which it then provides to public transport authorities, among other parties.

“Our challenge lies in preserving the correct status and condition of the rolling stock we own and lease,” says Jan Eriksson, a rolling stock manager at Transitio.

Euromaint plays an important role in the maintenance chain by reprocessing the automatic couplers of the rolling stock. The work is carried out at Euromaint’s workshop in Örebro. The lead times are critical.

“We know the challenges faced by our cus-tomers if the lead times are not maintained during the reprocessing of components. Our priority is ensuring that Transitio get their couplers on time so that the punctuality of their customers’ train services is not ad-versely affected,” says Christina Stomberg, contract manager at Euromaint Rail.

Jan Eriksson finds Euromaint to be coopera-tive, flexible and adaptable and says that they are very happy with the partnership.

“We very rarely have any complaints about or deficiencies in the work carried out by Euromaint. Everything goes smoothly and I’m very pleased with our collaboration,” concludes Jan Eriksson.

transitio’s challenge: An effective maintenance plan for punctual regional transport.

EuroMaint’s solution: As part of the maintenance chain, Euromaint carries out reprocessing of com-ponents on the rolling stock’s automatic couplers.

Customer value: Efficient and optimised reprocessing of compo-nents means high availa-bility for the rolling stock.


OFFERING | WORK MACHINES

Comprehensive maintenance services for work machinesEuromaint offers maintenance of machines for track maintenance and, with its long-standing experience, can be part of the solution to ensure railway availability.

Within Euromaint we have solid expertise in and experience of all types of machines for track and overhead line work. The objective is to improve our customers’ competitiveness by increasing availability and ensuring infrastructure reliability. This is achieved through comprehensive maintenance services, vast function and product know-how, high technical exper-tise and a flexible organisation.

The offering includes maintenance of machines for track maintenance, e.g. track switching trains, ballast ploughs, track aligners, inspection trolleys and engine trolleys, as well as equipment for over-head line maintenance, e.g. catenary wag-ons and cable replacement machines.

EUROMAINT’S CUSTOMERS WITHIN WORK MACHINES

High level of service with full service commitmentStockholms Lokaltrafik (SL) is meant to enable passengers in the Stockholm area to get to work, their place of study or leisure activities. This means the trains need to run on time.

SL has a large fleet of machinery which takes care of track maintenance, and since Novem-ber 2009 Euromaint has been responsible for maintaining these work machines.

Euromaint has long-standing experience and a high level of technical expertise within main-tenance of work machines. The objective is to increase the availability and reliability of the machines. Gustav Jansson is Business Area Manager for Work Machines at Euromaint:

“Our assignment is to take on a full service commitment for the work machines. This involves everything from managing to devel-oping the maintenance. We have to keep the quality of the work high enough that the work machines are both available and reliable when they are doing their jobs,” he says.

SL’s fleet of machinery comprises around 120 different machines.

“Euromaint’s professional know-how and specialist knowledge of our machines is unique. At the same time, they are willing to make changes and there is a strong de-sire to develop and improve. This is a level of service that leads to reliability and confi-dence,” says Viveca Swing, SL’s business manager for work machines.

Sl’s challenge: The Stockholm region is growing and the population is rising by around 20,000 each year. New residential areas are being built all over the county and the inner city of Stockholm is becoming denser. So public transport has to work.

EuroMaint’s solution: Full service commitment with preventive and corrective maintenance.

Customer value: Dependable, available and reliable work machines.


FIVE-YEAR OVERVIEW

Five-year overview

SEK millions note2013 Q42

2012 Q42 20132 20122 2012 20111 20101 2009

inCoME StAtEMEnt

Net revenue 622 614 2,416 2,484 2,489 2,860 2,814 2,510

Operating expenses –592 –595 –2,366 –2,407 –2,420 –2,727 –2,835 –2,352

Other income/expenses 2 15 18 33 33 28 63 17

Income from sales/disposals – – – – – –2 – –

EBitDA 32 34 68 111 102 159 41 175

Depreciation, amortisation and impairment losses –11 –13 –42 –51 –51 –57 –56 –42

EBitA 21 22 25 60 51 102 –15 133

Depreciation, amortisation and impairment losses of intangible assets – – – – – –2 –4 –4

EBit 21 22 25 60 51 100 –19 128

Financial income 0 1 9 2 2 3 2 1

Financial expenses 3 –15 –14 –44 –48 –48 –51 –63 –59

EBt 6 9 –10 14 5 52 –79 70

Tax 18 –3 26 –18 –18 43 33 –13

Profit/loss from discontinued operations – –2 –5 –9 – –118 –30 –

Profit/loss for the year/period 24 4 11 –12 –12 –23 –77 57

Profit or loss attributable to parent company’s owners 24 4 11 –12 –12 –23 –77 57

Items affecting comparability –1 –11 –42 –30 –30 –35 –184 –

operating EBitA 23 33 67 90 81 137 169 133

StAtEMEnt oF FinAnCiAl PoSition

Goodwill 712 710 712 719

Other intangible fixed assets 3 8 9 23

Property, plant and equipment 176 164 185 202

Financial assets, non-interest-bearing 16 0 24 10

total non-current assets 907 – 882 930 – 954

Inventories 421 432 454 375

Receivables, non-interest-bearing 481 459 690 776

Cash, bank and other current investments 22 – – –

total current assets 924 – 892 1,144 – 1,151

totAl ASSEtS 1,831 – 1,774 2,075 – 2,105

Equity attributable to parent company’s owners 719 594 737 516

Provisions, interest-bearing 12 11 19 15

Provisions, non-interest-bearing 24 32 47 22

Liabilities, interest-bearing 552 577 628 756

Liabilities, non-interest-bearing 523 548 632 786

Financial liabilities, other 1 11 11 10

totAl EQuitY AnD liABilitiES 1,831 – 1,774 2,075 – 2,105

KEY RAtioS

EBITA margin (%) 3.5 3.6 1.0 2.4 2.1 3.6 –0.5 5.3

EBT margin (%) 1.0 1.5 –0.4 0.6 0.2 1.8 –2.8 2.8

Return on equity (%) – – – – –1.8 – – 11.9

Return on capital employed (%) – – – – 4.1 – – 10.4

Equity/assets ratio (%) – – 39 – 33 36 – 24

Interest-bearing net debt – – 564 – 588 647 – 772

Debt/equity ratio – – 0.8 – 1.0 0.9 – 1.5

Average no. of employees – – 2,282 2,419 2,437 2,442 2,373 1,909

1) The profits and average number of employees for 2010 and 2011 are pro forma taking into account the discontinued operation (Business Area Refurbishment) and sale of business (Euromaint Industry).

2) The profits for 2012 and 2013 are pro forma taking into account the discontinued operations in Germany and Belgium. 3) Excluding interest on shareholder borrowings.


DIRECTORS’ REPORT

Directors’ reportThe Board of Directors and the CEO of Euromaint Gruppen AB, Corp. ID number 556731-5402, with registered office in Stockholm, hereby submit the Annual Report for operational activities during the financial year 2013.

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

operations and organisationEuromaint strengthens its customers’ competitiveness through services and products that increase the availability, reliability and service life of production equipment in the rail transport industry.

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

the business environmentRail is a central part of the European infrastructure for the transport of passengers and freight. It is a common interest for the EU as a solution to many of the challenges facing Europe as it tries to provide for sustainable development. National rail systems are being opened up in accordance with the EU’s principles on free movement and free competition. This is a process that has reached different stages in different countries. Passenger traffic is still largely a national question, while the EU has long worked to create the conditions for a well-functioning pan-European rail freight market. A deregulated market benefits Euromaint in its role as an independent player for maintenance, without links to train operators or manufacturers. In 2013 the recession continued to affect Euromaint adversely, not least in Germany where the goods operators continue to review their maintenance strategy and carry out more maintenance in-house. However, the perception is that Euromaint has not lost shares of the total markets.

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

EmployeesThe average number of employees in the Group was 2,282 (2,419).

Environmental impactCommon to all of Euromaint Rail AB’s production areas is that

their main environmental impact is on air and water and, to a certain extent, soil. Its activities are classified as environmentally hazardous, and require reporting to the environmental authori-ties. The environmental authorities decide whether the degree of environmental hazard requires licensing or reporting. If Euromaint Rail AB does not receive the environmental licences required for production, this can limit the company’s ability to fulfil its commit-ments to its customers. If there is a short delay in licences being issued, it is possible to switch workshop activities in order to limit economic damage. Euromaint Rail AB’s units are obliged to sub-mit reports in accordance with the Ordinance concerning Environ-mentally-Hazardous Activities and the Protection of Public Health (1998:899). Notifiable activities carried out by Euromaint Rail AB include rolling stock cleaning, painting, de-icing, the handling of diesel fuel, etc.

Risks and uncertainty factorsThe Group’s companies have a customer structure in which a few customers account for a large proportion of the Group’s revenue. The loss of one major customer, or a significant customer contract, would result in considerable demands for an adjustment of the companies’ operational activities to match the reduced revenue. During a transitional period, the profitability of companies would be reduced in any such scenario. However, as customer relation-ships often include several different contract territories with vary-ing contract lengths, this risk is distributed over time.

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

Multi-year review and key ratiosFor key ratios see “Five-year overview” on page 21.

Financial instruments and risk managementThrough its operations, Euromaint is exposed to financial risks, including the effect of changes in prices on the loan and capital markets, exchange rates and interest rates. The Group’s overall risk management focuses on the unpredictability of the financial markets and aims at minimising potentially unfavourable effects on the Group’s financial results. Financial operations in the Group are centralised in Euromaint Rail AB’s finance function, which is responsible for the sourcing of capital, cash manage-ment and financial risk management. The operational activities are regulated through the Group’s financial policy.

the following important financial risks are dealt with:Market risksThe risk that the value of, or future cash flows from, a financial instrument will vary due to changes in market prices. Currency risk and interest rate risk constitute market risks.

Currency risksCurrency risk refers to the risk of exchange rate fluctuations negatively affecting the Group’s income statement, balance sheet and/or cash flows. Currency risks exist, both in the form of transaction risks and translation risks.


DIRECTORS’ REPORT

Interest rate risksInterest rate risks refer to the risk of a negative effect on the Group’s financial results resulting from changes in market inter-est rates.

other risksCredit riskCredit risk is the risk generated by the fact that the credit rating of the investor’s counterparty can change in an unpredictable manner, thereby resulting in a loss for the Group.

Liquidity and refinancing riskRefinancing risks refer to the risk that the refinancing of mature loans will become difficult or costly and that Euromaint will thereby have difficulty fulfilling its payment obligations. Liquidity risk refers to the risk of difficulty in fulfilling the obligations asso-ciated with financial liabilities.

For more information about financial risks, see Note 18.

Events of material significance in the financial yearIn 2013 the weak freight market continued to affect Euromaint adversely, especially in Germany where several customers are choosing to carry out a greater proportion of their maintenance in-house. In contrast to the freight business, the passenger busi-ness in Germany has seen a positive trend in 2013 with a number of successful projects carried out in Delitzsch. In order to manage the loss in volume from the freight business, the German company carried out an extensive austerity programme in 2013 and among other things shut down loss-making operations in Angermünde.

2013 saw the Swedish operations, which have a greater empha-sis on the passenger business that is less sensitive to recession, continue the work on developing the maintenance concept and strengthening quality, as well as helping to make existing custom-ers more competitive by actively proposing improvements to their rolling stock. In 2013 the Swedish company lost the maintenance contract for SJ Norrland, although it did sign an agreement with and started performing maintenance for regional transport com-pany SJ Uven in Linköping.

Future developmentEuromaint has a strong position in the Swedish train mainte-nance market. Through the acquisition of RSM in Germany in 2010, the subsidiary Euromaint Rail considerably strengthened its operational activities directed at freight traffic and established itself in the increasingly deregulated European rail market. Changes in maintenance strategies among the German freight transporters mean that Euromaint needs to adjust its German operational activities and take a closer look at the possibility of increasing its share of the maintenance of passenger coaches. Euromaint is already the leading independent player for train maintenance in Europe and, thanks to its position, Euromaint has good opportunities to take advantage of the ongoing deregu-lation of the train operator market in Europe.

Euromaint has identified a number of areas that must be fulfilled in order to attract current and potential customers; these areas constitute the Group’s customer promises. The focus areas are:Stability – be a stable partner and operate a stable business

Profitability – create profitable growth, good control of costs and strong cash flowImage – strengthen the market’s confidence by standing for qual-ity, delivery and innovationGrowth – grow in the Nordic countries as well as in the rest of Europe, organically and through acquisitions

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

the Parent CompanyEuromaint Gruppen AB carries out internal management services for other companies in the Group, as well as managing Group-wide finance agreements with banks. Apart from that, there are no external activities. Revenue was SEK 0 thousand (248) and operating profit SEK –734 thousand (–23). The profit/loss for the year amounted to SEK –62,166 thousand (–62,145).

Consolidated revenue and resultsRevenueTotal earnings amounted to SEK 2,439 million (2,518).

operating profitOperating profit amounted to SEK 26 million (60), giving an operating margin of 1.0 per cent (2.4).

Financial itemsNet financial income amounted to SEK –96 million (–100).

Cash flowCash flow for the period after investments amounted to SEK –50 million (5).

Equity/assets ratioThe equity/assets ratio amounted to 39 per cent (33). The equity/assets ratio is measured as equity and shareholder borrowings in relation to the balance sheet total.

Appropriation of profits in the parent company

Proposed appropriation of profits

The parent company’s profit/loss for the year was SEK. –62,165,429

Available to the Annual General Meeting, SEK:

Retained earnings 898,040,731

Profit/loss for the year –62,165,429

Total 835,875,302

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

Distribution to shareholders 25,434,000

Carry forward 810,441,302

Total 835,875,302

The income statement and balance sheet will be presented for adoption at the Annual General Meeting on 25 March 2014.


THE GROUP

Consolidated statement of income and other comprehensive incomeSEK thousands note 2013 2012

Operating income

Net revenue 2, 3, 4 2,415,519 2,484,093

Other operating income 5 23,629 34,231

total operating income 2,439,148 2,518,324

Operating expenses

Cost of goods and services sold 4 –843,800 –817,674

Other external expenses 6, 7 –495,721 –536,501

Personnel costs 8 –1,025,431 –1,052,510

Amortisation 9 –4,468 –6,967

Depreciation 10 –37,803 –44,220

Other operating expenses 5 –5,427 –879

total operating expenses –2,412,650 –2,458,751

operating profit 26,498 59,573

Financial income 11 9,276 2,058

Financial expenses 4, 11 –105,276 –102,243

net financial items –96,001 –100,185

Profit/loss before tax –69,503 –40,612

Tax 12 25,561 –17,578

Profit/loss for the year from continuing operations –43,942 –58,190

Profit/loss from discontinued operations –5,001 –8,538

Profit/loss for the year –48,943 –66,728

other comprehensive income

items that have been transferred or can be transferred to the profit/loss for the year

Change to translation reserve for the year 6,335 –6,053

Change to hedging reserve for the year 877 –1,038

Currency adjustment – 45

items that cannot be transferred to the profit/loss for the year

Revaluations of defined benefit pension obligations –1,171 –

other comprehensive income for the year 6,041 –7,046

Comprehensive income for the year

Profit/loss for the year attributable to

Parent company shareholders’ share of the profit/loss for the year –48,943 –66,728

Comprehensive income for the year attributable to

Parent company shareholders 6,041 –7,046

total comprehensive income for the year attributable to parent company shareholders –42,902 –73,774

Earnings per share

Earnings per share, undiluted –489 –667

Earnings per share from continuing operations

Earnings per share, undiluted –489 –667


THE GROUP

Consolidated statement of financial position

SEK thousands note 2013 2012

Assets

non-current assets

Intangible fixed assets 9 715,081 717,493

Property, plant and equipment 10, 13 175,814 164,458

Participations in associates 15 224 215

Deferred tax assets 12 15,815 –

total non-current assets 906,934 882,166

Current assets

Inventories 16 421,307 432,319

Trade receivables 17, 18, 19 316,678 350,793

Receivables from Group companies 17 32,608 16,000

Tax assets 17 6,092 6,270

Other receivables 17, 19 22,323 28,734

Completed, not invoiced 17, 20 10,007 3,200

Prepaid expenses/accrued income 17 92,609 54,488

Cash and cash equivalents 21 22,350 –

total current assets 923,974 891,804

totAl ASSEtS 1,830,908 1,773,970

liabilities and equity

Equity

Share capital 100 100

Other capital contribution 1,096,543 432,316

Reserves –20,324 –31,607

Retained earnings including profit/loss for the year –357,548 –309,763

Equity attributable to parent company shareholders 718,771 91,046

non-current liabilities

Non-current interest-bearing liabilities 13, 18, 19, 22 509,000 401,800

Shareholder borrowings 4, 18, 19, 22 – 503,198

Provisions for pensions and similar obligations 23 11,947 11,112

Other provisions 24 21,934 27,239

Deferred tax liabilities 12 2,183 5,113

Other non-current liabilities, interest-bearing 22 10,519 11,611

Other non-current liabilities, non-interest-bearing 19 3,876 15,438

total non-current liabilities 559,459 975,511

Current liabilities 25

Advance payment from customers 12,887 8,252

Trade payables 4, 19 253,612 239,347

Liabilities to credit institutions, interest-bearing 19, 22 32,861 163,215

Other current liabilities 19 28,369 31,101

Invoiced, not completed 26 47,973 62,039

Accrued expenses/deferred income 176,976 203,459

total current liabilities 552,678 707,413

total liabilities 1,112,137 1,682,924

totAl EQuitY AnD liABilitiES 1,830,908 1,773,970

Pledged assets and contingent liabilities 27

Pledged assets, floating charges 209,772 251,466

Contingent liabilities 68,510 117,397


THE GROUP

Consolidated statement of changes in equity

SEK thousands note Share capitalother capital contribution Reserves

Retained earn-ings including profit/loss for

the year total equity

Equity attributable to parent company shareholders

opening equity 1 January 2012 100 432,286 –24,516 –119,651 288,219

Adjusted item – 30 – –30 –

Group contributions received/given – – – 16,000 16,000

Current tax attributable to Group contributions – – – –4,208 –4,208

Dividend 1 – – – –135,191 –135,191

Profit/loss for the year – – – –66,728 –66,728

Other comprehensive income for the year – – –7,091 45 –7,046

Comprehensive income for the year – – –7,091 –66,683 –73,774

Closing equity 31 December 2012 100 432,316 –31,607 –309,763 91,046

opening equity 1 January 2013 100 432,316 –31,607 –309,763 91,046

Adjusted opening balance effect IAS 19 – – 4,071 –11,313 –7,242

Adjusted opening equity 1 January 2013 100 432,316 –27,536 –321,076 83,804

Shareholder contributions received – 664,227 – – 664,227

Group contributions received/given – – – 32,608 32,608

Current tax attributable to Group contributions – – – –7,174 –7,174

Dividend 1 – – – –11,792 –11,792

Profit/loss for the year – – – –48,943 –48,943

Other comprehensive income for the year – – 7,212 –1,171 6,041

Comprehensive income for the year – – 7,212 –50,114 –42,902

Closing equity 31 December 2013 100 1,096,543 –20,324 –357,548 718,771

Change in translation reserve 1

Opening translation reserve 1 January 2012 –24,516

Change for the year from the translation of companies –6,053

Closing translation reserve 31 December 2012 –30,569

Opening translation reserve 1 January 2013 –30,569

Adjusted opening balance effect IAS19 4,071

Change for the year from the translation of companies 6,335

Closing translation reserve 31 December 2013 –20,163

Change to hedging reserve

Opening hedging reserve 1 January 2012 –

Change for the year –1,038

Closing hedging reserve 31 December 2012 –1,038

Opening hedging reserve 1 January 2013 –1,038

Change for the year 877

Closing hedging reserve 31 December 2013 –161

1) Exchange rate differences when translating financial statements of foreign operations.

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


THE GROUP

Consolidated statement of cash flows


operating activities

Profit/loss after financial items in continuing operations –69,503 –40,612

Profit/loss after financial items in discontinued operations –5,001 –8,538

Depreciation/amortisation 42,311 51,225

Other items not affecting liquidity 21 58,618 41,572

Income tax paid 10,818 3,051

Cash flow from operating activities before changes in working capital 37,243 46,698

Changes in working capital

Increase (–)/Decrease (+) in inventories 11,012 22,017

Increase (–)/Decrease (+) in trade receivables 34,115 18,207

Increase (–)/Decrease (+) in other current receivables –71,125 35,270

Increase (+)/Decrease (–) in trade payables 14,265 –15,167

Increase (+)/Decrease (–) in other current liabilities –38,646 –73,011

Cash flow from operating activities –13,136 34,014

investing activities

Acquisition of intangible assets and property, plant and equipment 9, 10 –36,696 –28,711

Cash flow from investing activities –36,696 –28,711

Cash flow from operating activities –49,832 5,303

Financing activities

Synthetic options –967 –

Borrowings 120,950 –

Amortisation loans –152,009 –53,546

Repayment of shareholder borrowings –564,226 –

Dividend paid –11,792 –135,191

Shareholder contributions received 664,227 –

Group contribution received 16,000 183,434

Cash flow from financing activities 72,183 –5,303

Change in cash and cash equivalents for the period 22,351 –

Cash and cash equivalents at beginning of the period – –

Cash and cash equivalents at year end 21 22,351 –


PARENT COMPANY

Parent company income statement

Parent company statement of comprehensive income


operating income

Net revenue 2 – 248

total operating income – 248

operating expenses

Other external expenses 6 –734 –1

Personnel costs 8 – –270

total operating expenses –734 –271

operating profit –734 –23

Financial income 11 9,007 122

Financial expenses 11 –87,994 –84,398

net financial items –78,987 –84,276

Profit/loss before tax –79,721 –84,299

Tax 12 17,555 22,154




other comprehensive income

Change to hedging reserve for the year 877 –1,038

other comprehensive income for the year 877 –1,038

Comprehensive income for the year –61,289 –63,183


PARENT COMPANY

Parent company balance sheet


Assets

non-current assets

Participations in Group companies 14 935,200 935,200

Deferred tax assets 12 45 293

Non-current receivable Group companies 19 187,780 146,530

total non-current assets 1,123,025 1,082,023

Current assets

Receivables from Group companies 17, 19 456,185 302,288

Prepaid expenses/accrued income 17 14,397 –

Miscellaneous 101 5

total current assets 470,683 302,293

totAl ASSEtS 1,593,708 1,384,316

liabilities and equity

Equity

Restricted equity

Share capital 100 100

Reserves –161 –1,038

Non-restricted equity

Retained earnings 898,041 245,570


total equity 835,814 182,487

Non-current liabilities 22

Non-current interest-bearing liabilities 13, 18, 19 509,000 401,800

Shareholder borrowings 4, 18, 19 – 503,198

Other non-current liabilities, non-interest-bearing 19 1,667 12,577

total non-current liabilities 510,667 917,575

Current liabilities 25

Trade payables 4, 19 708 19

Liabilities to Group companies 19 221,514 239,130

Liabilities to credit institutions, interest-bearing 22 25,000 45,000

Other current liabilities 5 21

Accrued expenses/deferred income – 84

total current liabilities 247,227 284,254

total liabilities 757,894 1,201,829

totAl EQuitY AnD liABilitiES 1,593,708 1,384,316

Pledged assets and contingent liabilities 27

Pledged assets 204,582 246,276

Contingent liabilities – –


PARENT COMPANY

Parent company’s changes in equity

Restricted equity non-restricted equity

SEK thousands Share capitalFair value

reserveHedging

reserveRetained earnings

Profit/loss for the year total equity

Equity

opening equity 1 January 2012 100 – – 458,364 –139,783 318,681

Appropriation of profits – – – –139,783 139,783 –

Dividend – – – –135,191 – –135,191

Group contributions received – – – 84,368 – 84,368

Current tax attributable to Group contributions – – – –22,188 – –22,188

Profit/loss for the year – – – – –62,145 –62,145

Other comprehensive income for the year – – –1,038 – – –1,038

Comprehensive income for the year – – –1,038 – –62,145 –63,183

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

opening equity 1 January 2013 100 – –1,038 245,570 –62,145 182,487

Appropriation of profits – – – –62,145 62,145 –

Shareholder contributions – – – 664,226 – 664,226

Dividend – – – –11,792 – –11,792

Group contributions received – – – 79,720 – 79,720

Current tax attributable to Group contributions – – – –17,538 – –17,538

Profit/loss for the year – – – – –62,166 –62,166

Other comprehensive income for the year – – 877 – – 877

Comprehensive income for the year – – 877 – –62,166 –61,289

Closing equity 31 December 2013 100 – –161 898,041 –62,166 835,814

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

Change to hedging reserve

Opening hedging reserve 1 January 2012 –

Change for the year –1,038

Closing hedging reserve 31 December 2012 –1,038

Opening hedging reserve 1 January 2013 –1,038

Change for the year 877

Closing hedging reserve 31 December 2013 –161


PARENT COMPANY

Parent company cash flow statement


operating activities

Profit/loss after financial items –79,721 –84,299

Other items not affecting liquidity 21 47,585 54,517

Cash flow from operating activities before changes in working capital –32,136 –29,782

Changes in working capital

Increase (–)/Decrease (+) in other current receivables –168,390 –1,260

Increase (+)/Decrease (–) in trade payables 689 –7

Increase (+)/Decrease (–) in other current liabilities –37,722 19,825

Cash flow from operating activities –237,559 –11,224

investing activities

Acquisition of intangible assets and property, plant and equipment – –

Cash flow from investing activities – –

Cash flow from operating activities –237,559 –11,224

Financing activities

Synthetic options –968 –

Borrowings 120,950 –

Amortisation loans –55,000 –37,084

Repayment of shareholder borrowings –564,226 –

Dividend paid –11,792 –135,191

Shareholder contributions received 664,227 –

Group contribution received 84,368 183,434

Cash flow from financing activities 237,559 11,159

Change in cash and cash equivalents for the period – –65.0

Cash and cash equivalents at beginning of the period – 65.0

Cash and cash equivalents at year end – –


NOTES

Noter

note 1 | Accounting and valuation policies

This annual report and the consolidated financial statements were adopted by the Board and the CEO on 14 February 2014 and are proposed for final adoption by the Annual General Meeting on 25 March 2014.

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

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

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

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

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

Basis of preparation of the statementsThe accounts are based on historical acquisition costs, apart from certain financial instruments. For further information on this point, please consult the section Financial Instruments, below.

important estimates and assumptions for accounting purposesThe preparation of statements in accordance with IFRS requires the use of a number of estimates and assumptions about the future; these are made by the company management. The estimates for accounting purposes that result will, by definition, rarely correspond to the actual results.

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

Uncertainty in estimates Some assumptions about the future and certain estimates and assumptions at the balance sheet date have special significance for the valuation of assets and liabilities in the balance sheet. Discussed below are the areas where the risk of changes in value during the following year is greatest due to the need to change assumptions or estimates.

Goodwill impairment testingGoodwill arising from business combinations represents the difference between the acquisition cost and the fair value of the acquired identifiable net assets. Impairment testing for goodwill is performed once a year. The recoverable amount (i.e. the higher of value in use and fair value less selling expenses) is normally established based on the value in use, derived using discounted cash flow calculations. This in turn requires the expected future cash flow from the cash-generating unit to be estimated and an appropriate discount rate is established for calculating the cash flow’s present value.

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

Obsolescence of inventoriesIn value terms, inventories consist 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 com-pany has an obligation to stock items (spare parts) over a long period for individual train models, which have a very long economic and technical life.

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

Provision for warranties for work carried outFor so-called availability work, faults in a provided service or a non-functioning product are corrected during a short period after the service has been provided. The cost of the work or replacement of a non-functioning product is included in the agreed business deal.

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

Changed accounting policiesThe change in IFRS with application from 2013 which is deemed to have had the greatest effect on the Group’s accounting is the change to IAS 19. The change means that the so called corridor method is no longer permitted and the actuarial gains and losses must be recognised in other comprehensive income. The amount that was previously recognised in the so-called corridor, SEK 7,242 thousand, was returned as at 1 January 2013. Returns that are cal-culated on plan assets are based on the discount rate which was used when calculating the pension obligation. This means that the net interest on the net pension liability is now constituted by the interest expense on the pension liability and interest income on the plan assets. The difference between the actual return and the total included in the net interest income concerning plan assets is recognised in other comprehensive income.

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

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

– IFRS 12 Disclosure of Interests in Other Entities. The disclosure require-ments concerning subsidiaries etc. have been changed.

– IAS 28 Investments in Associates and Joint Ventures. The change concerns how recognition is to be done when changes in investments change and significant or joint controlling interest ceases or does not cease.

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

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


NOTES

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

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

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

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

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

Acquisitions made between 1 January 2004 and 31 December 2009For acquisitions made between 1 January 2004 and 31 December 2009, where the acquisition cost exceeds the fair value of acquired assets and assumed liabilities, as well as contingent liabilities reported separately, the difference is recognised as goodwill. When the difference is negative, this is recognised directly in the profit/loss for the year. Transaction fees, with the exception of transaction fees related to the issue of equity instruments or debt instruments, arising have been included in the acquisition cost.

Foreign currency – translationForeign operations’ financial statementsReceivables and liabilities in foreign operations, including goodwill and other consolidated surplus and deficit values, are translated from the foreign oper-ations’ functional currency to the Group’s reporting currency, the Swedish krona, at the rate on the balance sheet date.

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

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

Net investment in a foreign operation Monetary non-current receivables to a foreign operation for which no regula-tion is planned, or which will in all probability not take place within the fore-seeable future, are in practice part of Euromaint’s net investment in the for-eign operation. An exchange rate difference arising in the monetary

non-current receivable is recognised in other comprehensive income and accumulated in a separate component in equity, designated translation reserve. When disposing of a foreign operation the accumulated exchange rate differences related to monetary non-current receivables are included in the accumulated translation differences reclassified from the translation reserve in equity to the net profit/loss for the year.

Property, plant and equipmentOwned assetsProperty, plant and equipment is included at acquisition cost, less accumulated depreciation and accumulated impairment loss. The acquisition cost includes the purchase price and costs directly attributable to the asset, such as the cost for getting it in place and in such a condition that it can be used in accord-ance with the aim of the acquisition.

Subsequent costs are included in the asset’s carrying amount or recog-nised 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. All other types of repairs and maintenance are reported as expenses in the income statement during the period in which they arise.

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

The assets that are leased according to operational leasing are not recog-nised as assets in the statement of financial position. Operating lease con-tracts do not give rise to a liability either.

Depreciation/amortisation principlesTo allocate their acquisition cost down to the estimated residual value, there is straight-line depreciation according to plan of property, plant and equip-ment over the estimated useful life, according to the following percentages per year:

Category Depreciation yearMachinery and equipment 5–10Computers and terminals 3Improvements to leasehold 5–10

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

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

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

Goodwill is allocated to cash-generating units when carrying out testing for impairment, which is done annually. Impairment testing for goodwill is carried out using the following procedure. The goodwill value as determined on the date of acquisition is allocated to cash-generating units, or groups of cash-generating units, which are expected to bring benefits to the company through synergies. Assets and liabilities that already exist in the Group at the time of acquisition can also be attributed to these cash-generating units. Any cash flow of this type to which goodwill is allocated corresponds to the lowest level within the Group at which goodwill is monitored by the company’s man-agement and is not a part of the Group greater than one segment. Impairment is necessary when the recoverable amount for a cash-generating unit (or groups of cash-generating units) is less than the carrying amount. A write-down is then recorded in the income statement.


NOTES

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

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

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

Category Depreciation yearTechnology 3

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

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

Assets, except goodwill, that have previously been written down are exam-ined on each balance sheet date to determine whether a reversal is required.

Financial instrumentsFinancial instruments recognised in the statement of financial position in-clude, on the asset side, cash and cash equivalents, trade receivables, deriva-tives and other receivables. On the liability side are trade payables, loans, derivatives and other liabilities.

A financial asset or financial liability is recognised in the statement of financial position once the company has become a party to the instrument’s contractual terms. Trade receivables are recognised in the statement of finan-cial position when the invoice has been sent. Liabilities are entered when the counterparty has delivered and a contractual obligation to pay exists, even if an invoice has not yet been received. Trade payables are entered when an invoice has been received.

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

Acquisitions and divestments of financial assets are reported on the trade date, which is the date on which the company commits to acquire or sell the asset.

Financial instruments and hedge accounting Forward agreements used to hedge currency changes for receivables and lia-bilities in a foreign currency are valued at the spot price on the day when the currency future is taken up for assessment of the underlying receivable or liability. The difference between the forward rate and the day rate when the agreement is entered into (the arbitrage premium) is amortised over the term of the forward agreement. Amortised arbitrage premiums are reported as interest rate income or an interest rate expense when the future is longer than three months.

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

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

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

Trade receivablesTrade receivables are non-derivative financial assets with fixed or determina-ble payments that are not quoted in an active market. Trade receivables are recognised at the acquisition cost less any provision for impairment.

Trade receivables are deemed uncertain when payment is not seen as like-ly. The impairment losses for receivables are determined based on historic experience of bad debts on similar accounts. Trade receivables with impair-ment losses are recognised at the present value of expected future cash flows. However, receivables with a short term are not discounted.

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

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

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

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

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

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


NOTES

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

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

AssociatesAssociates are companies in which the Group has a significant, but not con-trolling, interest in operational and financial management, ordinarily through a shareholding of between 20 and 50 per cent of the voting rights. From the date that the controlling interest is obtained, the shares in the associate are recognised in the consolidated financial statements using the equity method. The equity method means that the value reported in the Group of shares in the associates corresponds to the Group’s share in the associates’ equity as well as Group goodwill and other residual values of Group surplus and deficit values. In the consolidated profit/loss for the year, the Group’s share in asso-ciated companies’ profit/loss attributable to the owners of the parent company, adjusted for any depreciation, impairment and reversals of acquired surpluses and deficit values, is recognised in “Income from participations in associates”. These equity participations, reduced by dividends received from associates, constitute the main change of the reported value of equity in associates.

Any difference on the acquisition date between the acquisition cost for the holding and the owner company’s share of the net fair value of the associ-ate’s identifiable assets and liabilities is recognised according to the same principles as for the acquisition of subsidiaries.

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

Continuing losses are not recognised unless the Group provided guaran-tees to cover losses arising in the associate.

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

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

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

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

income taxesIncome taxes are included in the consolidated financial statements with both current and deferred tax. Group companies are subject to taxation in accord-ance 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 previ-ous years.

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

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

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

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

A defined benefit pension plan means that the employee is guaranteed a pension equivalent to a certain percentage of their 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 dis-counting the estimated future cash flows using the interest rate on govern-ment bonds with maturities comparable to the current pension liability. The calculation is performed by an qualified actuary using the Projected Unit Credit Method. The Group’s net obligation comprises the present value of the obli-gation minus the fair value of plan assets adjusted for any asset limits. The net interest cost of the defined benefit obligation is recognised in the profit/loss for the year under net financial income. The net interest is based on the interest that arises when discounting the net obligation minus the fair value of plan assets adjusted for any asset limits. Other components are recog-nised in operating profit.

Revaluation differences comprise of actuarial profits and losses, the differ-ence between the actual return on plan assets and the sum that is included in the net interest and any changes in asset limit differences. Revaluation differences are recognised in other comprehensive income.

The special income tax comprises part of the actuarial assumptions and is therefore recognised as part of the net obligation. The part of the special income tax that is calculated based on the Swedish Act on Safeguarding Pension Obligations for legal entities is recognised for the sake of simplicity as an accrued expense instead of part of the net obligation.

Yield tax is recognised in profit or loss for the period to which the tax per-tains and is therefore not included in the liability calculation. In funded plans the tax is charged to the return of the plan assets and is recognised in other comprehensive income. In unfunded plans the tax is charged to the profit/loss for the year.

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


NOTES

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

ProvisionsProvisions are reported when the Group has an existing legal or informal obligation as a result of past events; it is more likely that an outflow of resources is required to settle the obligation than to not do so and the amount can be estimated reliably. No provisions are made for future operating losses. If there are a number of similar obligations, the likelihood of there needing to be an outflow of resources to settle this entire group of obligations is assessed. Where the effect of when payment is made is important, the provisions are calculated by discounting the expected future cash flow at an interest rate be-fore tax that reflects the current market estimates of the time value of money and, where applicable, the risks associated with the liability. The provisions for warranties, restructuring and pensions are reported under provisions.

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

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

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

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

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

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

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

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

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

Related party disclosuresRelated parties refers to the companies where Euromaint or parties related to Euromaint can exercise a controlling interest or a significant influence in terms of operational and financial decisions. The circle of related parties also includes the companies and individuals who have an opportunity to exercise a controlling interest or a significant influence over Euromaint Gruppen’s financial and operational decisions. Related party transactions are reported in Note 4.

Related individuals are defined as the Chairman and Members of the Board, the Chief Executive Officer and other senior executives as well as close relatives of these people. Remuneration to the Board of Directors and the Chief Executive Officer is presented in Note 8.

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

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

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

Differences between the parent company and the Group’s accounting policiesDue to the link between accounting and taxation, the rules on financial instru-ments and hedge accounting in IAS 39 are not applied to the parent company as a legal entity. In the parent company, financial fixed assets are valued at acquisition cost minus any write-down and financial current assets according to the principle of lowest value.

Interest rate swaps that effectively hedge cash flow risk in interest rate pay-ments for liabilities are valued at the net of accrued claim for variable interest and accrued liability for fixed interest and the difference is reported as an interest rate expense or interest rate income. The hedging is effective if the financial significance of the hedge and the liability is the same as if the liability had instead been taken up at a fixed market rate when the hedging relation-ship commenced. Any premiums paid for the swap agreement are amortised as interest over the term of the agreement.

Group contributionsGroup 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.


NOTES

note 2 | Distribution of net revenue

SEK thousandsthe Group

2013the Group

2012the Parent Company


2012Sale of services 2,188,033 2,352,502 – 248Sale of goods 227,486 131,591 – –total 2,415,519 2,484,093 – 248

note 3 | Distribution of net revenue by segment

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

the Group, SEK thousands 2013 2012Sweden 1,885,944 1,843,276Central Europe 529,575 640,817total 2,415,519 2,484,093

note 4 | transactions with related parties


2013the Group



2012Purchase of goods and servicesBisnode Kredit AB 7 – – –

Financial expensesEMaint (Ratos) 61,028 54,529 61,028 54,529

Receivables from related partiesRatos – – – –Inwido 32,608 – 32,608 –Spin International – 16,000 – 16,000

liabilities to related partiesEMaint (Ratos) – 503,198 – 503,198

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

InwidoGroup

contributionsBisnode Kredit AB Service purchaseEmaint (Ratos) Interest expenses

Companies in Note 4 are companies within the Ratos Group. Information on remuneration paid to senior executives can be found in Note 8.


NOTES

note 5 | other operating income and expenses


2013the Group

2012other operating incomeProfit on the sale of non-current assets 117 302Exchange gains on receivables/liabilities of an operating nature – 3,382Miscellaneous 23,512 30,547total 23,629 34,231

other operating expensesLoss on the sale of non-current assets –71 –879Exchange losses of an operating nature –5,356 –total –5,427 –879

The parent company has no figures to report for 2013 and 2012.

note 6 | Auditors’ fees


2013the Group

2012KPMGAuditing assignments 1,694 1,626Tax assignments 194 256Other assignments 33 264total 1,921 2,146

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

Everything else falls under other assignments. The parent company’s audit fees for 2013 and 2012 were paid by the subsidiary EuroMaint AB.

note 7 | operating leases

the GroupFuture minimum lease payments, SEK thousands 2013 2012Within 1 year 131,965 86,303Between 1 and 5 years 131,516 92,257More than 5 years 14,564 3,412total 278,045 181,972

Written-off lease rentals 125,646 110,522total 125,646 110,522

The rental of track, premises and IT equipment is recognised under the Group’s operating leases.


NOTES

note 8 | Average number of employees and employee costs

the average number of employees broken down by gender isthe Group

2013the Group



2012SwedenFemale 115 134 – –Male 1,209 1,301 – –total 1,324 1,435 – –

GermanyFemale 89 94 – –Male 839 864 – –total 928 958 – –

Rest of EuropeFemale 2 2 – –Male 28 24 – –total 30 26 – –

Group totalFemale 206 230 – –Male 2,076 2,189 – –total 2,282 2,419 – –

Board membersFemale 6 3 1 –Male 10 12 3 3total 16 15 4 3

the Chief Executive officer and other senior executivesFemale 3 4 – –Male 6 6 – –total 9 10 – –

Personnel costs


2013the Group



2012SwedenSalaries and other remunerationThe Board of Directors and CEOs 3,081 4,253 – – Of which bonuses and comparable remuneration – (750) – –Other employees 516,549 511,192 – 154total salaries and other remuneration 519,630 515,445 – 154Payroll overheads 211,788 214,755 – 111 Of which pension expenses 43,596 47,767 – 59

other countriesSalaries and other remunerationThe Board of Directors and CEOs 1,946 2,904 – – Of which bonuses and comparable remuneration – – – –Other employees 248,850 263,358 – –total salaries and other remuneration 250,796 266,262 – –Payroll overheads 51,815 54,274 – – Of which pension expenses – – – –

Remuneration and other benefits during the periodThe Chairman of Euromaint Gruppen AB received a fee of SEK 100 thousand (433) in 2013, with other Board Members receiving SEK 36 thousand (42). If employed by Ratos, no fee applies. The Chief Executive Officer of Euromaint Gruppen AB receives a salary from Euromaint Rail AB. The CEO’s retirement age is 65. The CEO has a defined contribution pension promise of 30 per cent of monthly pensionable remuneration. The notice period is twelve

months for notice from the company’s side and six months for notice from the CEO’s side and during this time, salary is paid with full adjustment against other income.

Some employees in the Euromaint Group have taken up synthetic shares and options. However, these are not linked to each employee’s employment.

Benefits to management groups and employees in similar positions, in accordance with ÅRL, are recognised as benefits to other employees.


NOTES

note 9 | intangible fixed assets

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

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

The assessment of future cash flows is based on the latest budgets/fore-casts and normally covers a three-year period. For calculations after this period the estimates of future cash flows are based on the assumption of a steady rate of growth deemed realistic for the cash-generating unit. For the 2013 calculation, a growth rate of 3 per cent has been used based on market posi-tions, plans for the future and growth in the market for each unit.

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

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

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

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

The company has chosen a discount rate after tax, as estimated future cash flows also include tax. The discount factor reflects market assessments of the time value of money and the specific risks associated with the asset. The discount factor does not reflect any such risks taken into account when future cash flows are estimated. As a starting point when calculating the dis-count rate, the company’s weighted average capital cost, its marginal borrow-ing rate and other market borrowing rates independent of the company’s capital structure are used. For the 2013 calculations, the discount rate after tax has been calculated at 8.14 per cent.

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

SEK millions 2013 2012Railway Sweden 662 662Railway Germany 50 48total 712 710

The impairment testing carried out by the company management, which has also been presented to the Board of Directors, has not resulted in impair-ment of the carrying amounts in the remaining segments in 2013.

2013 2012

SEK thousands Goodwill technology total Goodwill technology totaltthe GroupOpening accumulated acquisition costs 709,961 25,926 735,887 711,794 21,593 733,387Investments during the year – 107 107 – 5,541 5,541Correction – – – – –991 –9911

Currency adjustment 1,820 380 2,200 –1,833 –217 –2,050Closing accumulated acquisition costs 711,781 26,413 738,194 709,961 25,926 735,887

Opening accumulated amortisation – –18,394 –18,394 – –12,537 –12,537Correction – – – – 991 9911

Amortisation for the year – –4,468 –4,468 – –6,967 –6,967Exchange rate difference – –251 –251 – 119 119Closing accumulated amortisation – –23,113 –23,113 – –18,394 –18,394

net book value 711,781 3,300 715,081 709,961 7,532 717,493

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

1) Correction refers to incorrect opening balances from previous years.


NOTES

note 10 | Property, plant and equipment

2013

SEK thousandsBuildings and land

improvements to leasehold

Plant and machinery

Equipment, tools, fixtures

and fittingsConstruction

in progress totalthe GroupOpening acquisition costs 6,557 49,492 165,219 305,636 23,236 550,140Correction – – 1,4332 4,8932 – 6,326Purchasing 4,006 2,790 1,900 17,544 16,500 42,740Sales/disposals – – –10,892 –8,714 – –19,606Currency adjustment 249 99 1,492 6,186 592 8,618Closing accumulated acquisition costs 10,812 52,381 159,152 325,545 40,328 588,218

Opening depreciation –1,603 –31,475 –116,987 –235,617 – –385,682Correction – – –1,4332 –4,8932 – –6,326Depreciation for the period –908 –3,972 –10,179 –22,744 – –37,803Depreciation for the period in discontinued operations – – – –40 – –40Sales/disposals – – 10,865 8,309 – 19,174Currency adjustment –91 –82 –748 –806 – –1,727Closing accumulated depreciation –2,602 –35,529 –118,482 –255,791 – –412,404

Closing planned residual value 2013 8,210 16,852 40,670 69,754 40,328 175,814

2012

SEK thousandsBuildings and land

improvements to leasehold

Plant and machinery

Equipment, tools, fixtures

and fittingsConstruction

in progress totalthe GroupOpening acquisition costs 5,900 50,210 169,726 284,467 26,609 536,912Correction – – –5,9061 5,9061 – –Purchasing 1,301 753 5,320 22,669 –2,122 27,921Sales/disposals –431 –1,356 –2,530 –6,158 –1,085 –11,560Currency adjustment –213 –115 –1,391 –1,248 –166 –3,133Closing accumulated acquisition costs 6,557 49,492 165,219 305,636 23,236 550,140

Opening depreciation –1,027 –27,742 –113,816 –208,957 – –351,542Correction – – 4,3041 –4,3041 – –Depreciation for the period –618 –4,582 –10,329 –28,691 – –44,220Depreciation for the period in discontinued operations – – – –38 – –38Sales/disposals 42 789 2,375 5,901 – 9,107Currency adjustment – 60 479 472 – 1,011Closing accumulated depreciation –1,603 –31,475 –116,987 –235,617 – –385,682

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

1) Correction refers to reclassification of non-current assets.2) Correction refers to incorrect opening balances from previous years.

The parent company has no property, plant or equipment; for this reason this division is not reported.


NOTES

note 11 | Financial income and expenses


2013the Group



2012interest incomeLoans and receivables 458 714 189 122Pensions – 1,344 – –Change in value synthetic options 8,818 – 8,818 –Financial income 9,276 2,058 9,007 122

interest expensesFinancial liabilities valued at amortised acquisition cost –100,234 –93,902 –85,910 –81,298Pensions – –1,757 – –loans and payablesOther financial expenses –5,043 –6,584 –2,084 –3,100Financial expenses –105,277 –102,243 –87,994 –84,398

income and expenses by financial category

SEK thousands

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

Held for trading

Financial assets measured

according to the Fair Value

optionloans and

receivables

liabilities valued at

amortised acquisition

cost

Derivatives used for hedging

purposes totalthe Group 2013Income by categoryInterest income – – 458 – – 458Valuation of synthetic options 8,818 – – – – 8,818total 8,818 – 458 – – 9,276

Expenses by categoryInterest expenses – – – 100,233 – 100,233Other financial expenses – – – 5,043 – 5,043total – – – 105,276 – 105,276

the Group 2012Income by categoryInterest income – – 714 – – 714Pension plan – 1,344 – – – 1,344total – 1,344 714 – – 2,058

Expenses by categoryInterest expenses – – – 93,902 – 93,902Pension plan interest expenses – 1,757 – – – 1,757Other financial expenses – – – 6,584 – 6,584total – 1,757 – 100,486 – 102,243


NOTES

income and expenses by financial category

SEK thousands

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

Held for trading

Financial assets measured

according to the Fair Value

optionloans and

receivables

liabilities valued at

amortised acquisition

cost

Derivatives used for hedging

purposes totalParent Company 2013Income by categoryInterest income – – 189 – – 189Valuation of synthetic options 8,818 – – – – 8,818total 8,818 – 189 – – 9,007

Expenses by categoryInterest expenses – – – 85,910 – 85,910Other financial expenses – – – 2,084 – 2,084total – – – 87,994 – 87,994

Parent Company 2012Income by categoryInterest income – – 122 – – 122total – – 122 – – 122

Expenses by categoryInterest expenses – – – 81,298 – 81,298Other financial expenses – – 3,100 – – 3,100total – – 3,100 81,298 – 84,398

note 12 | tax

The tax rate was changed on 1 January 2013 from 26.3 per cent to 22 per cent.


2013the Group



2012total reported taxCurrent tax 6,929 3,330 17,538 22,188Tax attributable to previous years 60 –1,083 – –34Deferred tax 18,572 –19,825 17 –total 25,561 –17,578 17,555 22,154

Differences between reported tax and estimated tax are based on the current tax rate consisting of the following components:Difference in estimated tax at current tax rate – – – –Reported profit before tax from continuing operations –69,503 –40,612 –79,721 –84,299Reported profit before tax from discontinued operations –5,001 –8,538 – –

Tax according to current tax rate, 22% (26.3%) 16,391 12,926 17,539 22,171

Effects of non-taxable income and non-deductible expensesEffect of other tax rates in other countries/foreign subsidiaries –2,761 1,032 – –Non-deductible expenses –12,480 6,692 – 1Non-taxable income 4 12 – –Activation of previously unrecognised tax loss carryforwards 13,355 –8,566 – –Tax attributable to previous years 60 –1,083 – –Miscellaneous 10,992 –28,591 16 –17total 25,561 –17,578 17,555 22,155

The Group’s effective tax for 2013 amounts to –33.8 per cent (–35.8) of taxable profit. The parent company’s effective tax for 2013 amounts to –27.3 per cent (–26.3) of taxable profit.

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


NOTES


2013the Group



2012Deferred tax assets Deferred tax attributable to deficits 14,327 517 – –Hedging instruments (under Other comprehensive income) – – 45 293Non-current assets –23 –2,824 – –Other provisions 1,511 1,439 – –Other receivables – 782 – –Transferred to “Deferred tax liabilities” – 86 – –Provisions at year end 15,815 – 45 293

Deferred tax liabilitiesProvisions for pension obligations 2,183 3,822 – –Provisions – 1,205 – –Transferred from “Deferred tax assets” – 86 – –Provisions at year end 2,183 5,113 – –

Changes to deferred tax assets and liabilities are attributable to the following:Change in deferred tax assetsOpening value –86 23,585 293 –Deferred tax attributable to deficits 13,810 –583 – –Non-current assets 2,801 –25,309 – –Valuation of hedging instruments – – –248 293Other provisions 72 1,439 – –Other receivables –782 782 – –Closing value 15,815 –86 45 293


2013the Group



2012Change in deferred tax liabilityOpening value 5,027 13,850 – –Provisions for pension obligations –1,639 344 – –Non-current assets – –3,762 – –Provisions –1,205 –5,405 – –Closing value 2,183 5,027 – –


2013the Group



2012tax items reported directly against equityCurrent tax attributable to Group contributions –7,174 –4,208 –17,538 –22,188total –7,174 –4,208 –17,538 –22,188


NOTES

note 13 | Finance leases

the GroupFuture minimum lease payments, SEK thousands 2013 2012Within 1 year 7,861 6,242Between 1 and 5 years 10,519 11,282More than 5 years – 1,387total 18,380 18,911

Future minimum lease payments exclude guaranteed residual values, as these do not constitute a future payment. Guaranteed residual values are included in the closing lease liabilities however. The guaranteed residual values amount to SEK 5,363 thousand (4,335).

Written-off lease rentals 6,664 7,361total 6,664 7,361

No variable fees are included in net income. The hire of rolling stock, machines and workshop equipment is reported under the Group’s finance leases.

For the majority of the finance lease contracts, at the end of the contract Euromaint can either purchase the equipment for an equivalent residual value of 10 per cent, recommend another buyer, or extend the contract (the new rental then becomes a quarterly rent per year as previously).

the Parent CompanyThere are no amounts to report for the parent company.

note 14 | Participations in Group companies (refers to the parent company)

Company’s name Corp. iD no. Registered office

no. of partici-pations

Equity and voting rights %

Book value 2013

Book value 2012

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

Euromaint Rail AB 556032-2918 Stockholm 190,000 100Euromaint Rail Bemanning AB 556670-3095 Stockholm 1,000 100Euromaint GmbH Amtsgericht Leipzig Stadt HRB 25939 Leipzig / Germany 1 100Euromaint SIA 40003885784 Riga / Latvia 15,000 100

On 2 December 2013 the Board of Directors of Euromaint AB decided that the company would be merged with its parent company, Euromaint Gruppen AB (556731-5402).

note 15 | Participations in associates


2013the Group

2012Carrying amount at year start 215 482Investments – 218Sales – –470Exchange rate differences 9 –15Carrying amount at year end 224 215

HoldingsThe following specifications show the Group’s associates.

Company’s name SEK thousands

Equity and voting rights

% Book value

2013 Book value

2012Euromaint Mobile Service BV 50 224 215Associates owned by Group companies 224 215

note 16 | inventories

SEK thousandsthe Group 2013 2012Gross stock 436,271 422,048Obsolescence reserve –75,670 –63,158Work in progress 60,706 73,429net stock 421,307 432,319

Distributed as belowReplacement parts 90,588 89,019Spare parts 266,808 268,920Work in progress 60,706 73,429Miscellaneous 3,205 951total 421,307 432,319


NOTES

note 17 | trade receivables and other receivables


2013the Group



2012Trade receivables 316,678 350,793 – –Receivables from Group companies 32,608 16,000 456,185 302,288Tax assets 6,092 6,270 – –Other receivables 22,323 28,734 101 5Completed, not invoiced 10,007 3,200 – –Prepayments and accrued income 92,609 54,488 14,397 –total 480,317 459,485 470,683 302,293

Specification of prepayments and accrued incomePrepaid rent 33,784 25,784 – –Accrued income, maintenance measures 42,885 20,234 – –Miscellaneous 15,940 8,470 14,397 –total 92,609 54,488 14,397 –

note 18 | Financial risks and risk management

Through its operations, Euromaint is exposed to financial risks, including the effect of changes to prices in the loan and capital markets, exchange rates and interest rates. The Group’s overall risk management focuses on the unpredictability of the financial markets and aims at minimising potentially unfavourable effects on the Group’s financial results. Financial operations in the Group are centralised in Euromaint Rail AB’s finance function. The finance function acts as an internal bank and is responsible for the sourcing of capi-tal, 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 risksThe risk that the value of, or future cash flows from, a financial instrument varies due to changes in market prices. Currency risk and interest rate risk constitute market risks.

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

The net flow in EUR is approximately EUR 21,450 thousand (17,000) per year, which means that a 5 per cent change in the exchange rate will affect purchase costs before hedging by approximately SEK 8.9 million (7.4) before tax. Currency hedging is no longer practised against this net flow. Exposure relating to the transaction risk attributable to the other currencies is not sig-nificant. Currency risk in the form of translation risk is attributable to the cur-rencies EUR and LVL. Translation differences for internal investment loans in EUR are reported due to its character to equity.

Interest rate risksInterest rate risks refer to the risk of a negative effect on the Group’s financial results resulting from changes in market interest rates. Euromaint is affected by the general rate adjustments through its external loan portfolio. To counter these, SEK 150 million of the loans has been hedged with a 2-year interest rate swap The underlying loans run for 3 months. The interest rate swap gives a base rate of 1.95 per cent up to the due date, 14 February 2014. Therefore, with the current size of the loan portfolio, an increase in interest rates of 1 percent-age unit increases the annual interest expense for Euromaint by SEK 5.0 mil-lion before taxes. The shareholder borrowings carry a fixed rate of 12 per cent until the loans are repaid. There were no shareholder borrowings at the end of the financial year.

other risksCredit riskCredit risk is the risk generated by the fact that the credit rating of the inves-tor’s counterparty can change in an unpredictable manner, thereby resulting in a loss for the Group. Euromaint has procedures in place to minimise the ongoing customer credit risk in its operations. These procedures relate, for example, to credit testing, advances and warranty management, and ongoing credit monitoring. Identified customer losses during 2013 amounted to SEK 6,319 thousand (2,356). At the balance sheet date, Euromaint had indirect collateral of approximately SEK 61 million (91) 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 trade receivablesNot due 237,148Due 0–60 days 49,613Due 61–180 days 25,103Due 181–365 days 1,235More than 1 year 3,579total trade receivables 316,678

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


NOTES

Liquidity and refinancing riskRefinancing risks refer to the risk that the refinancing of mature loans will become difficult or costly and that Euromaint will thereby have difficulty fulfill-ing its payment obligations. Liquidity risk refers to the risk of difficulty in ful-filling the obligations associated with financial liabilities. Euromaint’s policy is to always have available cash and cash equivalents and secured refinancing to the extent required for the activity. As of 31 December 2013, there was a loan facility with Swedbank totalling SEK 734 million (1,090), including a bank overdraft facility of SEK 80 million (197) as well as a separate framework of SEK 120 million (50) solely dedicated to bank guarantees. As of the measure-ment day, 31 December 2013, Euromaint fulfilled all the requirements related to financial key ratios associated with the financing agreement.

SEK thousands the Group Book valueDue dates on bank loans and shareholder borrowings:Within 1 year 25,0001–5 years 234,0005 years or later 275,000total 534,000

For lease liability due dates, see Note 7.

Fair value of derivative instruments on the balance sheet date 2013 2012Contracts with negative fair values:Interest rate swap (due date 1–5 years) –206 –1,331

loan terms and due date structure/interest rate renegotiationSEK thousands loans from credit institutions and shareholder borrowings nominal sum Due date 1 year or less Within 1–5 yearsBank loans 339,000 30/06/2019 25,000 234,000Bank loans 195,000 30/06/2019 – –total 534,000 25,000 234,000

transaction exposure converted to SEK thousands

2013 SEK EuR noK other totalCurrencyNet revenue in SEK thousands – 48,679 28,059 – 76,738net currency exposure – 48,679 28,059 – 76,738

No currency hedging takes place against the net flows.


NOTES

note 19 | information on fair value of financial instruments

The carrying amount of trade receivables, cash and cash equivalents, trade payables and other liabilities constitutes a reasonable approximation of fair value.

SEK thousands the GroupAs of 31 December 2013liabilities by category

Financial liabilities valued at fair value via the income statement

liabilities valued at amortised acquisition cost

Derivatives used for hedging purposes

Held for trading Book value Book valueNon-current interest-bearing liabilities – 509,0003 – Synthetic options and shares 1,461 – – Current interest-bearing liabilities – 32,861 – total 1,461 541,861 –

SEK thousands the GroupAs of 31 December 2012liabilities by category




Held for trading Book value Book valueNon-current interest-bearing liabilities – 401,8003 – Shareholder borrowings – 503,1984 – Synthetic options and shares 11,246 – – Current interest-bearing liabilities – 163,215 – total 11,246 1,068,213 –

SEK thousands the Parent CompanyAs of 31 December 2013 Assets by category

Financial assets measured at fair

value via the income statement loans and receivablesDerivatives used for

hedging purposesHeld for trading Book value Book value

Receivables from Group companies – 643,965 – total – 643,965 –

SEK thousands the Parent CompanyAs of 31 December 2013liabilities by category




Held for trading Book value Book valueNon-current interest-bearing liabilities – 509,0003 – Synthetic options and shares 1,461 – – Liabilities to Group companies, non-interest-bearing – 221,514 – total 1,461 730,514 –

SEK thousands the Parent CompanyAs of 31 December 2012 Assets by category

Financial assets measured at fair

value via the income statement loans and receivablesDerivatives used for

hedging purposesHeld for trading Book value Book value

Receivables from Group companies – 448,818 – total – 448,818 –

SEK thousands the Parent CompanyAs of 31 December 2012 liabilities by category




Held for trading Book value Book valueNon-current interest-bearing liabilities – 401,8003 – Shareholder borrowings – 503,198 – Synthetic options and shares 11,246 – – Liabilities to Group companies, non-interest-bearing – 239,130 – total 11,246 1,144,128 –


NOTES

Fair value of comprehensive income

SEK thousands Assets

the Group 2013 the Group 2012level 3 level 3

Non-current investment, pension obligations, non-interest-bearing1 – –total – –

liabilitiesSynthetic shares and options2 1,461 11,246Derivative financial instruments – –total 1,461 11,246

The same values apply to the parent company as for the Group in 2013 and 2012.

Only level 3 instruments are valued at fair value above other comprehensive income/income statement.

Level 3. Fair value based on input data that is not observable on the market. The value of the liability for the synthetic shares is based on an external measure-ment, where a Fair Market Value has been assessed using a DCF model (discounted cash flow). The cash flows have been calculated based on the com-pany’s business plans, market prospects, investment plans and growth forecasts and then discounted by a weighted average capital cost (WACC). For the 2013 measurement, a WACC of 8.14 per cent was used. When determining the discount rate, consideration has been given to specific risks in the market and to the company, risk-free rate, market loan margins and the company’s capital structure. The model calculates an Equity Value (EQV) based on the value of the entire company less the loan. The value of the liability for the synthetic options has been calculated using the Black-Scholes valuation method and is based on the company’s extent and terms for the incentive programme, share valuation and statistics on volatility and yield rates for government bonds.

1) Reported as net under provisions, pensions.2) Synthetic shares and options were valued by an external independent valuer in 2013.3) Non-current interest-bearing liabilities run with variable interest rates, which is why these are considered to be valued at fair value.4) Shareholder borrowings run with a fixed interest rate of 12 per cent. At the end of 2013 there were no shareholder borrowings in the Group.

Financial assets and liabilities valued at fair value in the income statementSEK thousands Synthetic shares and options

the Group 2013

the Group 2012

the Parent Company2013

the Parent Company2012

Opening balance 11,246 11,246 11,246 11,246Profit/loss, income statement –8,818 – –8,818 –Concluded –967 – –967 –Closing balance 1,461 11,246 1,461 11,246

note 20 | Completed, not invoiced

SEK thousandsAssets in the balance sheet

the Group 2013

the Group 2012

Accrued income 151,873 3,200Invoiced amounts –141,866 –total 10,007 3,200

For contracts reported according to the percentage of completion accounting method the degree of completion is determined in relation to the abandoned assignment charges compared to forecast assignment charges incurred. In the same year the total contract revenue amounted to SEK 227,486 thousand and the total contract losses amounted to SEK 208,373 thousand.


NOTES

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


2013the Group



2012Changes in provisions –4,470 –13,722 – –Unpaid interest on shareholder borrowings 61,028 54,529 61,028 54,529Currency translation effects –2,072 453 – –Other items 4,132 312 70,925 –12total 58,618 41,572 131,953 54,517

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

Disposal of subsidiariesNo disposals have been made during 2013 or 2012.

Acquisitions of subsidiaries No acquisitions have been made during 2013 or 2012.

note 22 | interest-bearing liabilities

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

Book value/fair value Book value/fair value


2013the Group



2012long-term componentBank loans 509,000 405,000 509,000 401,800Shareholder borrowings – 503,198 – 503,198Finance lease liability 10,519 11,611 – –Other1 – –3,200 – –total 519,519 916,609 509,000 904,998

1) Other relates to bank charges for taking out the loan. These are amortised over the term and are reversed during the term of the loan.

Short-term componentBank loans 25,000 45,000 25,000 45,000Finance lease liability 7,861 6,376 – –Bank overdraft facility 0 111,839 – –total 32,861 163,215 25,000 45,000

Overdraft limit 80,000 196,934 – –

The total loan facility with Swedbank includes SEK 784,000 thousand (1,090,000), and other institutions SEK 0 thousand (0). A new bank agreement was determined on October 2013. According to the new agreement, the agreement covers an overdraft of SEK 80,000 thousand, leasing credit limit of SEK 50,000 thousand, guarantee limit of SEK 120,000 thousand and a bank loan of SEK 534,000 thousand.

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

ary 2014, by signing an interest rate swap contract.

the Group 2013

the Group 2012

The average term in months for outstanding external bank loans is therefore: 66.0 6.5Weighted average interest rates including interest margins were on the balance sheet date: 4.87 % 4.79 %


2013the Group



2012interest rate duration1 year or less 534,000 301,800 534,000 301,8001–5 years – 145,000 – 145,000total 534,000 446,800 534,000 446,800

For maturity of bank loans and shareholder borrowings, see Note 18.For finance leases, see Note 13.


NOTES

note 23 | Pensions and similar obligations

Defined benefit pension plansthe Group, SEK thousands 2013 2012Present value of partially or fully funded obligations (+) 44,263 55,071Present value of unfunded obligations (+) 11,772 18,683total present value of defined benefit pension obligations (+) 56,035 73,754Fair value of plan assets (–) –50,959 –57,130net of present value of the obligations and fair value of plan assets 5,076 16,624Effect of limitation rule on net assets (+) 6,696 2,059net amount for defined benefit plans is recognised in the statement of financial position 11,772 18,683

The net amount for defined benefit plans is recognised in the following items in the statement of financial position:Other financial fixed assets – –Provisions for pensions 11,772 18,683net amount in the statement of financial position 11,772 18,683

overview of defined benefit plans The defined benefit pension obligations that are included in the Group’s recognition of defined benefit pension liabilities are as follows:I. Defined benefit pension within the state occupational pension agreement

PA91/PA03, which was earned in the period when the state owned the company. These benefits are secured through insurance with KPA.

II. Professional and occupational disability annuities for former employees. Secured through depositing on account in the company’s balance sheet.

III. A number of employees that are covered by the ITP-S plan are entitled to early retirement pension according to the transitional provisions, a so-called transitional provision pension. The employees this concerns are a fixed group, i.e. no new individuals will be added. A transitional provision pension means that the employee is entitled to draw their pension from the age of 60 with a level of benefit of 65 per cent of their salary until the normal retirement age of 65. Payments to employees who have exercised the right to early retirement pension in accordance with the transitional provisions are untouchable pension obligations for the company and are secured through depositing on account in the company’s balance sheet.

IV. A few other retirement benefits derived from old state pension agree-ments.

Changes in the present value of the obligation for defined benefit plansthe Group, SEK thousands 2013 2012Obligation for defined benefit plans as of 1 January 73,754 87,844Remuneration paid –11,277 –13,640Current service costs 2 26Service costs for previous periods –148 –704Interest expense 873 1,752Revaluations:– Actuarial gains and losses on changed

demographic assumptions – –– Actuarial gains and losses on changed financial

assumptions –1,987 3,028– Experience adjustments –5,182 –4,552Effects of acquisition/disposal of businesses – –Exchange rate differences – –obligation for defined benefit plans as of 31 December 56,035 73,754

The present value of the obligation is divided among the members of the plan(s) as follows:– Active members 0.4 (0.9) per cent– Paid-up policyholders 11.0 (10.8) per cent– Pensioners 88.6 (88.3) per cent

Changes in the present value of the obligation for defined benefit plansthe Group, SEK thousands 2013 2012Fair value of plan assets as of 1 January 57,130 64,141Contributions by the employer – 1,002Contributions by participants covered by the plan – –Interest income recognised in profit or loss 707 1,354Remuneration paid –5,490 –6,225Effects of acquisition/disposal of businesses – –Exchange rate differences – –Administrative expenses (not related to the management of the plan assets) – –The difference between actual return and return according to the discount rate of the plan assets –1,388 –3,142Fair value of plan assets as of 31 December 50,959 57,130

The recognised plan assets consist of 100 per cent of the value of the Group’s insurance contracts in KPA concerning earned pension rights in old state pension agreements. The calculated value of the insurance is partly based on the actuarial calculation methods and it is therefore not possible to report how the plan assets are distributed between shares, bonds and other types of securities.

Cost reported in the profit/loss for the yearthe Group, SEK thousands 2013 2012Current service costs 2 26Service costs for previous periods –148 –704 Net interest income/interest expense 193 490net cost in the profit/loss for the year 47 –188 Actual return on plan assets –1,788 8,774

Cost reported in other comprehensive incomethe Group, SEK thousands 2013 2012Revaluations:Actuarial gains (–) and losses (+) –7,169 –1,524The difference between actual return and return according to the discount rate of the plan assets 1,388 3,142Effects of change in asset limit, excluding amounts recognised in the net interest 4,610 –2,197net amount reported in other comprehensive income –1,171 –579

Assumptions for defined benefit pension obligationsThe most important actuarial assumptions as of the balance sheet date (expressed as weighted averages):

the Group, per cent 2013 2012Discount rate as of 31 December 1.90 1.30Future pension increase 1.20 1.10


NOTES

An example of the mortality assumption of expected remaining lifespan on which the obligation is calculated appears in the table below:the Group, number 2013 2012Mortality assumptions at 65 – retired members:Male 19.7 19.7Female 22.8 22.8Mortality assumptions at 65 for members who are 45:Male 21.7 21.7Female 24.1 24.1

Sensitivity analysisThe effect on the present value of the obligation in the event of various changes in the actuarial assumptions on the balance sheet date is presented below; other assumptions are unchanged.

the Group, SEK thousands

the obligation

as of 31 December

2013

Effect on the present

value of the

obligationOfficial assumption (see table above) 56,035 –Reduction of the discount rate by 0.5 percentage unit 57,942 3.40%Increase in the assumption on future pension increases by 0.5 percentage unit 57,358 2.40%Increase in the expected remaining lifespan by 1 year for a man currently aged 65, with corresponding changes for other ages and for women 59,094 5.50%

As at 31 December 2013 the weighted average term of the obligation amounted to 7 (7) years.

The defined benefit pension obligations that are included in the Group’s recognition of defined benefit pension liabilities belong to all old pension agreements for which no new pension rights have been earned. In the future the Group may be forced to pay the indexing cost for the pension benefits which are insured with KPA; however, no such indexing cost is expected to arise in 2014. The Group estimates that no payments will take place in 2014 for funded and unfunded defined benefit plans which are recognised as de-fined benefit plans; however, SEK 27,790 thousand will be paid in 2014 to the defined benefit plans that are recognised as defined contribution plans.

The 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 2013 financial year, the company has not had access to such information that makes it pos-sible to report this plan as a defined benefit plan. The pension plan according to ITP, which is secured by insurance with Alecta, is therefore reported as a defined contribution plan. The fees for the year for pension insurance policies taken out with Alecta amount to approximately SEK 38,453 million (39,507). Alecta’s surplus can be distributed to policyholders and/or those insured. At the end of 2013, Alecta’s surplus in the form of the collective consolidation level amounted to 127 per cent. The collective consolidation level comprises the market value of Alecta’s assets as a percentage of the insurance obliga-tions calculated in accordance with Alecta’s technical insurance calculation assumptions, which does not comply with IAS 19.

note 24 | other provisions

2013 2012SEK thousandsthe Group Warranties

other provisions total Warranties

other provisions total

Provisions at start of year 23,465 3,774 27,239 26,221 7,118 33,339Provision for the year 10,695 – 10,695 4,865 577 5,442Utilisation during the year –13,819 –2,555 –16,374 –6,663 –3,662 –10,325Exchange rate difference 144 230 374 –958 –259 –1,217Provisions at year end 20,485 1,449 21,934 23,465 3,774 27,239

The parent company does not report any provisions. Provision for warranties starts to be calculated when a service is completed or the goods have been released to the customer.

In order to estimate the amounts, historical data related to repairs and exchanges are generally used.Provision 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.

note 25 | trade payables and other liabilities


2013the Group



2012Advance payment from customers 12,887 8,252 – –Trade payables 253,612 239,347 708 19Liabilities to Group companies – – 221,514 239,130Liabilities to credit institutions, interest-bearing 32,861 163,215 25,000 45,000Other current liabilities 28,369 31,101 5 21Invoiced, not completed 47,973 62,039 – –Accrued expenses / deferred income 176,976 203,459 – 84total 552,678 707,413 247,227 284,254

Specification of accruals and deferred incomePersonnel costs 101,160 95,329 – – Product liabilities 20,998 36,763 – – Accrued costs, maintenance measures 23,685 53,821 – – Miscellaneous 31,133 17,546 – 84total 176,976 203,459 – 84


NOTES

note 26 | invoiced, not completed

SEK thousandsthe Group 2013 2012Invoiced amounts 308,279 139,909Accrued income –260,306 –77,870total 47,973 62,039

For contracts reported according to the percentage of completion accounting method the degree of completion is determined in relation to the abandoned assignment charges compared to forecast assignment charges incurred. In the same year the total contract revenue amounted to SEK 227,486 thousand and the total contract losses amounted to SEK 208,373 thousand.

note 27 | Pledged assets and contingent liabilities


2013the Group



2012Pledged assetsPledged shares in subsidiaries (net assets)1 204,582 246,276 204,582 246,276Pledged floating charges 5,190 5,190 –total 209,772 251,466 204,582 246,276

Contingent liabilitiesPension obligations, FPG/PRI 13 16 – –Other guarantees 68,497 117,381 – –total 68,510 117,397 – –

total 278,282 368,863 204,582 246,276

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

note 28 | Discontinued operations

In September 2013, the Group decided to wind up the company WLS Belgium and the Angermünde unit. Since the decision was taken, the units have been recognised as discontinued operations in the income statement for 2012–2013.

SEK thousands Profit or loss for the year in discontinued operations 2013 2012Income 3,666 5,293Expenses –8,667 –13,831Tax for the year1 – –Profit/loss for the year –5,001 –8,538

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

SEK thousands net cash flow from discontinued operations 2013 2012Cash flow from operating activities –4,823 –8,873Cash flow from investing activities2 190 –53Cash flow from financing activities2 – –net cash flow –4,633 –8,926

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

Stockholm, 14 February 2014

Leif Johansson Chairman of the Board

Ove Bergkvist Jonathan Wallis Kjell Carlsson Elisabet Wenzlaff CEO


AUDITOR’S REPORT

Auditor’s reportto the Annual General Meeting of Euromaint Gruppen AB, corp. iD no. 556731-5402

Report on the Annual Report and the Consolidated Financial StatementsWe have audited the Annual Report and Consolidated Financial Statements for Euromaint Gruppen AB for 2013. The company’s Annual Report and Consolidated Financial Statements are included in the printed version of this document on pages 22–53.

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

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

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

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

OpinionIn our opinion, the Annual Report has been prepared in accord-ance with the Swedish Annual Accounts Act and gives in all material respects a true and fair view of the parent company’s financial position as of 31 December 2013 and of its financial per-formance and cash flow for the year according to the Swedish Annual Accounts Act. The Consolidated Financial Statements have been prepared in accordance with the Swedish Annual

Accounts Act and give in all material respects a true and fair view of the Group’s financial position as of 31 December 2013 and of its financial performance and cash flow for the year according to International Financial Reporting Standards, as adopted by the EU, and the Swedish Annual Accounts Act. The Directors’ Report is consistent with other parts of the Annual Report and the Con-solidated Financial Statements.

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

Report on other requirements according to laws and other statutesIn addition to our audit of the Annual Report and Consolidated Financial Statements, we have also performed an audit of the proposed appropriation of the Company’s profit or loss as well as the Board of Directors’ and Chief Financial Officer’s adminis-tration of Euromaint Gruppen AB for the year 2013.

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

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

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

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

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

OpinionWe recommend that the Annual General Meeting appropriate the profit of the parent company according to the proposals con-tained in the Directors’ Report and discharge the Board Members and the Chief Executive Officer from liability for the financial year.

Stockholm, 14 March 2014

KPMG AB

Fredrik Sjölander Authorised Public Accountant


THE BOARD OF DIRECTORS

the Board of Directors

leif JohanssonChairman of the BoardDate of Birth: 1949Board Member since: 2012Other appointments: Chairman of the Board, Ålborg Fastighets A/S. Board Member, Arcus-Gruppen AS, Inwido AB, Pro-fura AB, Latour IndustriesEducation: Bachelor of Science in Engineering and BusinessCurrent employment: Indus-trial advisor, Ratos

Elisabet WenzlaffBoard MemberDate of Birth: 1955Board Member since: 2013Other appointments: Board Member, Apoteket AB, Grön-klittsgruppen AB, Visualeyes AB. Deputy Board Member, Nacka Energi ABEducation: Bachelor of Law, Stockholm University, Master of Law, University of PennsylvaniaCurrent employment: Self-employed

Jonathan WallisBoard MemberDate of Birth: 1974Board Member since: 2007Other appointments: Board Member, KVD Kvarndammen ABEducation: Graduate Business Administrator, Stockholm School of Economics, BA, Stockholm UniversityCurrent employment: Senior Investment Manager at Ratos

oscar HermanssonDeputy MemberDate of Birth: 1979Deputy Board Member since: 2012Other appointments: Board Member, Scandinavian Business Seating ASEducation: Graduate Business Administrator, Stockholm School of EconomicsCurrent employment: Investment Manager, Ratos

Bertil HallénEmployee RepresentativeDate of Birth: 1954Board Member since: 2001Other appointments: Board Member, Göteborgs Hamn AB, ABF Göteborg Vuxenutbildning AB, Odinskolan Fastighets AB

Karin nybergEmployee RepresentativeDate of Birth: 1952Board Member since: 2008Other board appointments: –Education: Upper secondary – humanities

Kjell CarlssonBoard MemberDate of Birth: 1951Board Member since: 2013Other appointments: Chair-man of the Board, Kopy Goldfields ABEducation: Master of Science in Engineering, Chalmers University of TechnologyCurrent employment: Senior Advisor


COMPANY MANAGEMENT

Company management

ove BergkvistPosition: President and CEODate of Birth: 1968Employed by Euromaint: 2011

Gustav JanssonPosition: Business Area Manager Work MachinesDate of Birth: 1952Employed by Euromaint: 1978

Henrik DagbergPosition: Business Area Manager PassengerDate of Birth: 1972Employed by Euromaint: 2009

Mattias WessmanPosition: CIODate of Birth: 1974Employed by Euromaint: 2009

ingela ErlinghultPosition: Business Area Manager ComponentsDate of Birth: 1965Employed by Euromaint: 2009

Jens WikmanPosition: CFODate of Birth: 1977Employed by Euromaint: 2012

lena GellerhedPosition: HR ManagerDate of Birth: 1968Employed by Euromaint: 2007

Anne-Catherine WorthPosition: Communications ManagerDate of Birth: 1969Employed by Euromaint: 2012

Produced by Euromaint, Huvudsta Kommunikation and Elli Production. Photography: Cover Kasper Dudzik, page 13 Niklas Alm, page 14 SJ/Jonas Bilberg, Board and Management Bengt Alm. Printed by: Sib-Tryck Holding AB.

EuroMaint A

nnual Report 2013

Head officeEuRoMAint ABBox 1555SE-171 29 SolnaOffice address: Svetsarvägen 10, Solna, Sweden

Head office, GermanyEuRoMAint RAil GMBHKarl-Marx-Straße 39D-04509 DelitzschGermany

www.euromaint.com

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