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SinterCast: SinterCast Results January-March 2014

Record quarterly series production of 1.70 million Engine Equivalents

First Quarter 2014

* Revenue for Period: SEK 14.6 million (SEK 11.7 million)
* Operating Result: SEK 2.9 million (SEK 1.5 million)
* Earnings per Share: SEK 0.45 per share (SEK 0.33 per share)
* Cashflow from Operations: SEK -2.1 million (SEK 0.2 million)
* New System 3000Plus installation shipped to world's first purpose-built CGI
foundry, in China
* 100% year-on-year Engine Equivalent growth for commercial vehicles
* Ram diesel pick-up enjoys strong start of sales in North America
* Installed Base: 23 fully automated systems and 16 mini-systems in Europe,
Asia and the Americas

Series Production*

See PDF for graph

Series production increased 30% year-on-year, with the first quarter of 2014
providing a new quarterly record of 1.70 million Engine Equivalents. The
outlook for series production remains positive as commercial vehicle and
pick-up volumes continue to grow.

* Annualised average production of Engine Equivalents during the quarter (1
Engine Equivalent = 50 kg)

CEO Comments

Commercial vehicles and pick-ups lead the increase in series production

Annualised series production during the quarter increased to 1.70 million
Engine Equivalents, providing a new quarterly record and 30% growth compared
to the first quarter of 2013. Production in March totalled 1.75 million
Engine Equivalents, SinterCast's second highest month ever.

The increase in series production was primarily driven by a 100% year-on-year
increase in commercial vehicle volume, benefitting from new engine launches
and the introduction of Euro 6 emissions legislation on 1 January 2014. All
commercial vehicles produced for sale in Western Europe must now comply with
the Euro 6 standard. Series production also benefitted from increased
pick-up volume in North America, with the Ram 1500 becoming the second
best-selling vehicle in North America during March 2014, due in part to the
start of diesel sales in February. The three best-selling vehicles in North
America throughout the first quarter were all pick-ups. SinterCast's links
to the important pick-up sector were further reinforced during the first
quarter, following Ford's introduction of the first-ever high volume CGI
petrol engine. Announced at the North American International Auto Show on 13
January, the 2.7 litre V6 petrol engine will be available later this year in
the Ford F150. Nissan has also announced the introduction of a
SinterCast-CGI V8 diesel engine in the next generation Titan, which has been
confirmed for launch at the North American International Auto Show in January
2015. This progress provides SinterCast with a presence in three of the five
full-size pick-up entries, in a market of approximately two million vehicles
per year.

The first quarter also marked the start of series production of industrial
power components at the Tupy foundry in Brazil, with the production of a CGI
cylinder head for an upgrade of the MTU Series 2000 engine. The use of
SinterCast-CGI was specified to enable increased power while ensuring
durability in the demanding duty cycles experienced by marine, mining,
construction and stationary power generating applications. The MTU cylinder
head establishes CGI series production at Tupy across the complete spectrum
of passenger vehicle petrol and diesel cylinder blocks, commercial vehicle
cylinder blocks and heads, and industrial power engine components. The entry
into industrial power applications is a part of Tupy's announced strategy to
increase the CGI share in its cylinder block and head production from the
current 16% to 25%.

Intensified installation activity

Following record installation revenue in 2013, the Technical Team is
particularly busy supporting new installations and upgrades in Europe, Asia
and the Americas. During January, SinterCast secured a new order for a
System 3000Plus
from one of China's largest automotive component conglomerates, to be
installed at a purpose-built CGI foundry in China. The equipment was shipped
during the first quarter and is planned to be installed during summer 2014.
SinterCast will also supply the mechanical infrastructure for the cored-wire
base treatment and correction operations and will provide technical support
during the installation and start of production. New installation
discussions are ongoing, providing opportunities to further expand the
production base.

SinterCast continues to provide technical support for product development
programmes for passenger vehicle, commercial vehicle and industrial power
applications in Europe, Asia and the Americas. It is estimated that the
combined potential of the current series production programmes and the
programmes currently under development represents a market opportunity of
approximately 4.7 million Engine Equivalents per year within SinterCast's
five year planning horizon. It is further estimated that the programmes that
are currently in series production have the potential to provide more than
2.5 million Engine Equivalents when they reach mature volume.

Ductile Iron technology

The recent development of the ductile iron technology has been affected by the
increased intensity in CGI activities and the need to allocate resources to
the core business. However, the technical development is continuing and
market opportunities remain. The R&D function was reinforced during the first
quarter with the recruitment of a specialist engineer with a PhD in cast iron
solidification and extensive cast iron research experience in Swedish
academia. The new Senior Research Engineer began employment at the Technical
Centre in Katrineholm on 14 April and will provide additional resources to
expand and accelerate SinterCast's development activities. The SinterCast
ductile iron technology is expected to provide additional benefit to
customers by reducing magnesium consumption, improving mould yield and
reducing casting defects in the foundry, and by improving machinability.

Financial Summary


The revenue for the SinterCast Group relates primarily to income from
equipment, series production and engineering service.

|Revenue Breakdown January-March January-December |
|(Amounts in SEK million if not otherwise stated) 2014 2013 2013 2012 |
|Number of Sampling Cups shipped 37,100 28,900 118,500 102,400 |
|Equipment 2.5 2.3 10.1 9.0 |
|1 |
|Series Production 11.6 9.0 40.2 35.8 |
|2 |
|Engineering Service 0.5 0.3 1.4 1.0 |
|3 |
|Other 0.0 0.1 0.2 0.1 |
|Total 14.6 11.7 51.9 45.9 |
| |
|Notes 1. Includes revenue from system sales and leases and sales of spare parts |
|: |
| 2. Includes revenue from production fees, consumables and software licence fees |
| 3. Includes revenue from technical support, on-site trials and sales of test |
| pieces |

TheJanuary-March 2014
revenue amounted to SEK 14.6 million (SEK 11.7 million). The revenue from
series production increased by approximately 30% to SEK 11.6 million (SEK 9.0
million), due to the production of approximately 1.70 million (1.30 million)
annualised Engine Equivalents and the shipment of 37,100 (28,900) Sampling
Cups. Equipment revenue amounted to SEK 2.5 million (SEK 2.3 million),
following the shipment of a complete System 3000Plus
to one of China's largest automotive component conglomerates. Engineering
Service amounted to SEK 0.5 million (SEK 0.3 million) following support
provided to various customers globally and the sale of test pieces.


The business activities of SinterCast are best reflected by the Operating
Result. This is because the "Result for the period after tax" and the
"Earnings per Share" are influenced by the financial income and costs and by
the revaluation of tax assets.

|Results Summary January-March January- December |
|(Amounts in SEK million if not otherwise stated) 2014 2013 2013 2012 |
|Operating Result 2.9 1.5 7.3 1.0 |
|Result for the period after tax 3.2 2.4 8.1 -3.7 |
|Earnings per Share (SEK) 0.5 0.3 1.2 -0.5 |
| |

TheJanuary-March 2014
Operating Result of SEK 2.9 million (SEK 1.5 million) increased by SEK 1.4
million, as a result of higher gross results of SEK 1.5 million derived from
higher revenue, higher operational expenses of SEK 0.3 million, and higher
exchange gains from operating receivables and liabilities of SEK 0.2 million.

The Result for the period after tax amounted to SEK 3.2 million (SEK 2.4
million), primarily related to an increase in the Operating Result of SEK 1.4
million, the increased financial net of SEK 0.2 million and decreased tax net
of SEK 0.8 million.

Deferred Tax Asset

Tax amounted to SEK -0.1 million (SEK 0.7 million). The difference is
explained by the increase of the deferred tax asset that was made during the
first quarter 2013. The estimated future taxable profit and deferred tax
asset calculation is reassessed every quarter. As of 31 March 2014, SEK 128.5
million (SEK 128.5 million) of SinterCast's total carried-forward tax losses
have been used as the basis of the updated calculation, resulting in SEK 28.3
million (SEK 28.3 million) being capitalised as a deferred tax asset.

Cashflow, Liquidity and Investments

|Cashflow Summary January-March January- December |
|(Amounts in SEK million if not othe...

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