Geveko : INTERIM REPORT JANUARY - MARCH 2014

INTERIM REPORT JANUARY - MARCH 2014

The road-marking business really only begins in the second quarter. The first quarter therefore provides no guidance to the outcome for the full year.

First quarter1

 Net sales amounted to SKr 61.5 million (43.4). The increase is mainly attributable to an earlier start to the season in Europe as a result of better weather.

 The operating result was a loss of SKr 51.1 million (loss 71.6). The improvement is due to higher sales, the Force 50 profitability programme, and discontinued operations.

 The loss after tax amounted to SKr 49.0 million (loss 61.7).

 The loss per share was SKr 2.90 (loss 3.65).

Significant events during the first quarter of 2014

No significant events occurred in the first quarter.

Significant events after the end of the reporting period

The seasonal nature of Geveko's business generally leads to a need for increased working capital

in the first half of the year. The Report of the Directors in the Annual Report, which was published on 3 April, showed that SKr 77 million of the seasonal credit requirement, which is expected to total SKr 90-95 million, had been secured. As of 17 April, the remainder of the requirement was secured by way of a loan from one of the company's bankers.

As one aspect of the discussions with the company's creditors Geveko further reviews its options for strengthening its financial position. This could involve strengthening the capital base through, for example, a rights issue in parallel with the development of strategic partnerships and joint operations. Geveko expects to be able to announce the result of this process before the end of Q2.

1 The figures for the previous year include discontinued operations. For these operations sales amounted to

SKr 0.0 million, the operating loss was SKr 5.3 million and the result after tax was a loss of SKr 5.8 million.

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Comments by Göran Eklund, Managing Director

I can note with satisfaction that the first quarter got off to a better start than was the case in recent years. The weather has been much better and this has led to an earlier start to operations - not just in the Nordic region but in the rest of Europe as well. This, combined with the measures in the Force 50 profitability programme, and the fact that we have completed the process of discontinuing operations, means that sales and the result are better than last year's.

The first quarter of the year is a period of little activity when it comes to contract road marking. Seasonally this leads to particularly weak figures for our Nordic contracting units, but I can observe that the figures are not as weak as last year's.

The same conditions apply to Geveko Material, but there has been a marked improvement compared to last year both in terms of sales and the result.

Overall, the operating loss in the first quarter was a good SKr 20 million less than in the corresponding quarter last year and, even though it is still early in the year, this indicates that we are moving in the right direction.

The large state road marking contracts in the Nordic countries have now been decided and compared to the previous year the outcome is similar or slightly higher volumes in Sweden, Finland and Denmark, while volumes in Norway have declined somewhat.

As for the company's short-term liquidity requirements, it is gratifying to announce that we now judge these to be resolved, thanks to the excellent co-operation we have with our creditors. Meanwhile, the company is making every effort to find a solution to strengthen its long-term financial position and improve its competitive position.

Göteborg, 28 April 2014

AB GEVEKO

Göran Eklund

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GROUP Operations

The business is focused on the production and sale of road-marking products and contracting services

and organised into the following functional units: Contracting, Material Sales, Product Development, Production & Purchasing as well as Finance & IT. Geveko is represented in the Nordic region, Europe and other countries via subsidiaries and sales offices. Contracting activities take place in Denmark, Finland, Norway and Sweden and through the associate companies in Germany and Hungary. Materials are sold to some 60 countries, that is to say also to markets where Geveko is not currently established, and to its own contracting units. Production facilities are located in Denmark, Norway, Sweden, Great Britain and Germany.

Seasonal effects

Road markings must be laid on dry surfaces, which makes the business dependent on the weather. The second and third quarters correspond on average to some 70 per cent of each year's total sales. Therefore, the first quarter provides no guidance as to the outcome for the full year.

NET SALES AND RESULT2

Net sales increased in relation to the corresponding quarter last year and amounted to SKr 61.5 million (43.4). The increase is mainly attributable to an earlier start to the season in Europe as a result of better weather. The operating result was a loss of SKr 51.1 million (loss 71.6). The improvement is due to increased sales, the Force 50 profitability programme, and to discontinued operations. The consolidated loss after tax amounted to SKr 49.0 million (loss 61.7) for the first quarter of 2014.

Net sales for the contracting business during the quarter amounted to SKr 8.5 million (4.5). The operating result was a loss of SKr 35.1 million (loss 39.3).

Material sales increased during the first quarter in relation to 2013. During the first quarter of 2014

Material sales amounted to SKr 59.1 million (34.9) and the operating loss amounted to SKr 12.8 (loss

22.9).

FINANCING

The net debt on 31 March 2014 amounted to SKr 449.9 million (396.8). The increase is wholly attributable to 2013. The equity ratio on 31 March 2014 was a negative 15.0 per cent (neg. 3.9).

NET FINANCIAL ITEMS

Interest income and similar profit/loss items consist of interest income of SKr 0.0 million (0.9) and other financial income of SKr 1.1 million (0.8). Interest costs and similar profit/loss items consist of interest costs of SKr 7.6 million (cost 5.9), currency fluctuations and other financial costs of SKr 5.3 million (2.0).

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

The seasonal nature of Geveko's business generally leads to a need for increased working capital in

the first half of the year. The Report of the Directors in the Annual Report, which was published on 3

April, showed that SKr 77 million of the seasonal credit requirement, which is expected to total SKr 90-

95 million, had been secured. As of 17 April, the remainder of the requirement was secured by way of

a loan from one of the company's bankers.

As one aspect of the discussions with the company's creditors Geveko further reviews its options for

strengthening its financial position. This could involve strengthening the capital base through, for

2 Figures for the previous year include discontinued operations. For these operations, sales amounted SKr 0.0 million, the operating loss to SKr 5.3 million and the result after tax was a loss of SKr 5.8 million.

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example, a rights issue in parallel with the development of strategic partnerships and joint operations. Geveko expects to be able to announce the result of this process before the end of Q2.

RISKS AND RISK MANAGEMENT

Risks and risk management include financial risks such as liquidity risk and credit risks, and the effects of changes in interest rates and exchange rates. There is also a financial risk in that the group needs seasonal credits. For a more detailed description of Geveko's risks and uncertainties, see page 3 and Note 33 of Geveko's 2013 Annual Report.

TRANSACTIONS WITH RELATED PARTIES

During the first quarter of 2014 there were no transactions with related parties having a significant effect on the company's financial position and result. Transactions with related parties in 2013 are stated in Note 34 of Geveko's 2013 Annual Report.

EMPLOYEES

As of 31 March 2014 there were 336 (356) employees in the Group, of whom 80 (100) were female. The number of employees at foreign Group companies was 231 (258). During 2013 the Group had an average of 493 employees.

PARENT COMPANY

The activities of AB Geveko (the parent company) mainly consist of Group management and the administration of central functions. The assets consist for the most part of shares in subsidiaries and receivables from the subsidiaries.

Result

The parent company's loss before tax for the first quarter of 2014 amounted to SKr 8.0 million (loss

9.4).

Accounting principles

This interim report is made up, insofar as the Group is concerned, in accordance with the Swedish Annual Accounts Act and IAS34 Interim Reporting, and, insofar as the parent company is concerned, in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2, Reporting by Juridical Persons. The accounting principles applied to the Group and parent company are unchanged in relation to the principles applied in the latest Annual Report.

Auditors review

This interim report has not been subject to a review by the company's auditors.

Next financial report

The interim report for the January-June period will be published on 17 July 2014.

Göteborg, Sweden, 28 April 2014

AB GEVEKO (publ)

Göran Eklund

Managing Director and CEO

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Consolidated profit and loss account

SKr million Jan-March Jan-March Jan-Dec

2014 2013 2013

CONTINUING OPERATIONS
Net sales 61.5 43.4 875.0

Cost of sold products -73.3 -69.9 -713.2

Gross profit/loss -11.8 -26.5 161.8

Development costs -3.0 -5.1 -21.6
Selling costs -19.3 -19.4 -88.0
Administrative costs -17.7 -17.9 -81.1
Interest in earnings of associate companies - - 3.6

Other operating income and costs 0.7 2.6 0.2

Operating loss -51.1 -66.3 -25.0

Interest income and similar profit/loss items 1.1 0.9 9.3

Interest costs and similar profit/loss items -12.9 -7.9 -30.9

Loss after tax -62.9 -73.3 -46.7

Tax 13.9 17.4 1.5

Loss after tax from continuing operations -49.0 -55.9 -45.2

DISCONTINUED OPERATIONS

Loss after tax from discontinued operations - -5.8 -28.0

Net loss for the period attributable to:
Parent company shareholders -49.2 -61.0 -73.2

Minority interests 0.2 -0.7 -

Loss after tax -49.0 -61.7 -73.2

Loss per share, SKr

(attributable to parent company shareholders) -2.90 -3.65 -4.34

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Statement of total result, SKr million

Jan-March
2014
Jan-March
2013
Jan-Dec
2013

Net loss for the period -49.0 -61.7 -73.2 Other components of total result for period

Items that can later be re-entered into the profit and loss account:
Change in value of cash flow hedges - - 0.6
Currency fluctuations 5.6 -0.1 -1.0

Other components of total result, net after tax 5.6 -0.1 -0.4 Total result for the period -43.4 -61.8 -73.6

Total result attributable to:
Parent company shareholders -43.6 -61.1 -73.6
Minority interests 0.2 -0.7 -

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Consolidated balance sheet

SKr million 31 Mar 2014 31 Mar 2013 31 Dec 2013

Assets Fixed assets

Intangible fixed assets 71.6 82.7 73.0
Tangible fixed assets 148.4 168.2 153.7

Financial fixed assets 57.0 56.0 59.0

Total fixed assets 277.0 306.9 285.7

Current assets

Inventories 99.5 109.8 62.6
Accounts receivable 68.6 63.1 81.1
Other current receivables 51.0 41.8 29.3
Liquid funds 13.4 - 16.3

Assets of discontinued operations - 52.0 -Total current assets 232.5 266.7 189.3

TOTAL ASSETS 509.5 573.6 475.0 EQUITY AND LIABILITIES Equity

Capital and reserves attributable
to parent company shareholders -76.4 -22.4 -33.0

Minority interests - - -Total equity -76.4 -22.4 -33.0

Long-term liabilities

Interest-bearing long-term liabilities 25.0 12.1 26.5

Interest-free long-term liabilities and provisions11.2 14.1 11.0

Total long-term liabilities 36.2 26.2 37.5

Current liabilities

Interest-bearing current liabilities 424.9 383.3 346.3
Other current liabilities 124.8 148.3 124.2

Liabilities of discontinued operations - 38.2 -Total current liabilities 549.7 569.8 470.5

TOTAL EQUITY AND LIABILITIES 509.5 573.6 475.0

Change in equity, SKr million

Jan-March
2014
Jan-March
2013
Jan-Dec
2013

Opening balance -33.0 39.4 39.4

Total profit/loss for the period -43.4 -61.8 -73.6

VAT on share issue - - 1.2

Closing balance -76.4 -22.4 -33.0

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Consolidated cash flow analysis, SKr million

Jan-March Jan-March Jan-Dec

2014 2013 2013

Cash flow: current operations before changes
In working capital -48.0 -56.3 1.5

Cash flow from changes in working capital -29.4 -22.7 -12.3

Cash flow from current operations -77.4 -79.0 -10.8

Acquisition of intangible fixed assets, net - -0.7 - Acquisition of tangible fixed assets, net -2.8 -6.2 -23.7
Acquisition of financial fixed assets - - -3.0
Sale of tangible fixed assets - - 3.2
Change in other fixed assets - -4.1 - Cash flow from discontinued operations - -0.9 -1.6

Cash flow from investment activities -2.8 -11.9 -25.1

Change in interest-bearing liabilities 76.9 54.9 30.9

CASH FLOW FOR THE PERIOD -3.3 -36.0 -5.0

Opening liquid funds 16.7 36.7 22. Currency difference, liquid funds - -0.7 -0.4

Closing liquid funds 13.4 - 16.7

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Parent company profit and loss account, SKr million Summary

31 March 31 March 31 December

2014 2013 2013

Net sales	1.2	-	22.2
Management costs	-8.5	-7.4	-29.1

Other operating costs - -0.7 -2.2

Operating loss -7.3 -8.1 -9.1

Write-down in value of claims on subsidiaries	-0.4	-	-27.6
Write-down in value of shares in subsidiaries	-	-	-3.4
Interest income and similar profit/loss items	2.9	3.3	17.9

Interest costs and similar profit/loss items -3.2 -4.6 -8.6

Loss before tax -8.0 -9.4 -30.8

Tax - - -

Loss for the period -8.0 -9.4 -30.8

Parent company balance sheet, SKr million

Summary

31 March 31 March 31 December

2014 2013 2013

Fixed assets 101.3 107.2 102.7

Current assets 360.0 362.6 278.0

Total assets 461.3 469.8 380.7

Equity	227.6	255.7	235.6
Long-term liabilities	26.5	47.1	27.0

Current liabilities 207.2 167.0 118.1

Total equity and liabilities 461.3 469.8 380.7

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Reporting by segment

Q1 2014
SKr million	Material Sales 1)	Contracting Nordic region	Other)	Group items/ Central)	Eliminations	Continuing operations
Net sales	59.1	8.5	0.3	-	-6.4	61.5
Operating costs	-67.6	-38.2	-0.9	-2.0	6.4	-102.4
Interest in earnings of associate companies	-	-	-	-	-	-
Operating loss before depreciation	-8.6	-29.7	-0.6	-2.0	-	-40.9
Operating loss	-12.8	-35.1	-0.7	-2.5	-	-51.1

Q1 2013
SKr million	Material Sales)	Contracting Nordic region	Other 2)	Group items/ Central)	Eliminations	Continuing operations
Net sales	34.9	4.5	7.5	-	-3.4	43.4
Operating costs	-53.0	-37.7	-9.8	-0.8	3.4	-97.8
Interest in earnings of associate companies	-	-	-	-		-
Operating loss before depreciation	-18.2	-33.2	-2.3	-0.8		-545
Operating loss	-22.9	-39.3	-3.3	-0.8		-66.3

January-December 2013 SKr million	Material Sales1)	Contracting Nordic regions	Other2)	Group items/ Central 3)	Eliminations	Continuing operations
Net sales	437.7	466.0	20.7	-	-49.3	875.0
Operating costs	-413.8	-488.1	-38.3	-12.8	49.3	-903.7
Interest in earnings of associate companies	-	-	-	3.6	-	3.6
Operating profit/loss before depreciation	43.4	3.5	-12.0	-7.8	-	-14.8
Operating profit/loss	23.9	-22.1	-17.6	-9.2	-	-25.0
Fixed assets	90.9	123.0	0.3	71.5	-	285.7
Current assets	109.0	38.1	0.8	41.3		189.3
Liabilities	14.5	21.3	1.0	471.1	-	508.0

1) Material sales includes production.
2) Other includes development, manufacture and sale of intelligent road safety products.
3) Group items/Central includes the Hungarian associate company.

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Quarterly review 2014-2012

SKr million 2014 2013 2012

Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1

Net sales 61.5 180.3 361.0 290.4 43.4 171.1 381.2 359.5 66.3
Operating profit/loss -51.1 -34.7 43.6 32.4 -66.3 -34.8 36.3 41.5 -76.7
Profit/loss after tax -49.0 -31.4 34.4 7.8 -55.9 -48.8 26.7 10.6 -60.3
Earnings/loss
per share, SKr -2:90 -1:86 2:04 0:46 -3:31 -2:89 1:58 0:63 -3:57
Equity -76.4 -33.0 12.3 -17.2 -22.4 39.4 111.7 89.9 118.7
Balance sheet total 509.5 475.0 645.3 738.5 573.6 589.2 769.2 858.8 746.5
Net debt 449.9 356.8 394.6 474.0 396.8 306.7 358.6 43.5 380.1
Equity ratio, % -15.0 -6.9 1.9 -2.3 -3.9 6.7 14.5 10.5 15.9

Moving 12-month figures

Net sales 893.2 875.1 865.9 886.1 955.2 978.1 1,036.9 1,052.2 1,038.4
Operating profit/loss -9.8 -25.0 -25.1 -32.4 -23.3 -33.8 -11.6 6.3 11.0
Operating margin, % -1.1 -2.9 -2.9 -3.7 -2.4 -3.5 -1.1 0.6 1.1

Loss after tax -41.1 -45.2 -62.5 -70.2 -67.4 -71.7 -58.6 -58.2 -33.7

Five-year review January-December 2013-2009

SKr million 20131) 2012 1) 2011 1) 2010 1) 2009

Net sales	875.0	978.1	1,046.2	1,037.4	1,435.0
Operating profit/loss 2)	-25.0	-33.8	18.1	-0.3	-40.0
Operating margin. %	-2.9	-3.5	1.7	0.0	-2.8
EBITA	-23.8	-33.8	19.4	-0.6	-8.4
Profit/loss after tax	45.2	-71.7	-27.0	-48.0	-57.0
Balance sheet total	475.0	589.2	779.0	900.5	1,089.3
Equity	-33.0	39.4	189.9	322.4	326.3
Of which attributable to
parent company shareholders	-33.0	39.4	140.2	263.1	250.6
Return on equity, %	n/a	-182.0	-14.2	-14.9	-15.7
Return on operative capital, %	-13.5	-20.7	-5.3	-7.8	-4.9
Net debt	356.8	322.8	333.0	299.9	411.8
Equity ratio, %	-6.9	6.7	24.4	35.8	30.0
Per share data Loss/share, SKr 3)	-2:68	-4:25	-1:60	-3:36	-5:55
Cash flow/share, SKr 3)	-0:20	-0:15	2:70	2:34	-6:20
Listed price Geveko "B", SKr 4)	2:10	3:48	5:00	12:80	26:13
No. of shares 4) 16,	878,132	16,878,132	16,878,132	16,878,132	10,717,613

No. of employees 493 437 480 485 884

1) 2013, 2012, 2011 and 2010 figures for continuing operations.
2) 2009 including cost of Management of Securities.
3) Adjusted for share issue in Q2 2010.
4) Adjusted for share issue in Q2 2010. The number after adjustment amounted in 2009 to
10,717,613. As of 1 June 2010 the number of shares amounted to 16,878,132.

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Forthcoming information 2014-2015

Interim report, January-June 2014 17 July 2014

Interim report, January-September 2014 27 October 2014

Year-end release 2014 24 February 2015

Annual Report 2014 April 2015

Interim report, January-March 2015 28 April 2015

Contact information

Göran Eklund, CEO and Managing Director Tel: [phone] [e-mail]

The information provided in this report is such that AB Geveko is required to publish in accordance with the Act concerning the Securities Market and/or the Act concerning Trading in Financial Instruments. This information was released for publication on 28 April 2014 at 12.45 p.m.

AB GEVEKO (publ) Company registration number: 556024-6844

P.O. Box 2137. 403 13 Göteborg, Sweden. Tel: [phone]. [e-mail]. www.geveko.se

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