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SinterCast: SinterCast Results January-March 2015

Series production breaks two million Engine Equivalent milestone

Five consecutive quarters with record production
First Quarter 2015
* Revenue for Period: SEK 18.8 million (SEK 14.6 million)
* Operating Result: SEK 5.9 million (SEK 2.9 million)
* Earnings per Share: SEK 0.82 per share (SEK 0.45 per share)
* Cashflow from Operations: SEK 4.5 million (SEK -2.1 million)
* Series production reaches 2.0 million Engine Equivalents; 18% year-on-year
* Strong ramp-up of Ford petrol engine as 2015 F-150 sales increase in USA
* Continued growth of European commercial vehicle programmes
* Three new installation commitments secured in Asia during first quarter
* Installed Base: 23 fully automated systems and 19 mini-systems in Europe,
Asia and the Americas
Series Production*
For graph, see Press Release PDF

Annualised series production reached 2.0 million Engine Equivalents in the
first quarter, providing an 18% year-on-year increase.

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

CEO Comments
Strong growth on all fronts
Following annualised series production of 2.2 million Engine Equivalents in
March, the annualised volume for the first quarter reached 2.0 million Engine
Equivalents, providing five consecutive quarters of record production and an
18% year-on-year increase. The recent trend reinforces the sustained
long-term growth, with an average compounded annual growth rate of 18% since
the first quarter of 2007. The production demand in the first quarter also
led to the shipment of 40,500 Sampling Cups; the second highest quarter in
SinterCast's history. Together with two new installations accounted for in
the first quarter, the series production and the Sampling Cup shipments
resulted in record revenue of SEK 18.8 million and a 103% increase in the
year-on-year operating result.

Series production benefitted from accelerated growth of the Ford 2.7 litre V6
petrol engine as sales of the model year 2015 Ford F-150 ramped-up during the
quarter. It is particularly rewarding that journalists, dealers and
consumers have provided consistently positive feedback regarding the
performance and refinement of the SinterCast-CGI petrol engine. Series
production also benefitted from increased production of commercial vehicle
cylinder blocks and heads in Europe, and by the start of production of
industrial power engine components at the newly commissioned installation at
the Impro Industries foundry in China. Based on customer production
reporting, the SinterCast process was used for the production of more than
75,000 cylinder blocks during the month of March. The outlook remains
positive in each of the passenger vehicle, commercial vehicle and industrial
power sectors, as competitive benchmarks and market awareness continue to

The first quarter also provided three new installation commitments. The first
commitment, at Dongfeng Trucks, China's largest heavy duty truckmaker, was
announced on 7 January. However, the equipment has been held at the
Technical Centre in Sweden in order to allow the Dongfeng engineers to train
on their own equipment. The Dongfeng installation will be shipped,
commissioned and accounted for in the second quarter. The other two
installations, at Doosan Infracore in Korea, and at an undisclosed engine
component foundry in Japan, were shipped during the first quarter and have
been commissioned. The installations in China, Korea and Japan are the
result of our strong commitment to the Asian market over many years; the
awareness and acceptance of the SinterCast brand; and, the confidence in our
technology and engineering support. Asia currently accounts for 17 of our 42
installations, but it is even more significant to note that 12 of our last 20
installations have been in China, Japan and Korea.

Ductile Iron technology
Development of the ductile iron technology continued during the quarter with
field trials and product development. The current development is focussing
on the optimisation of the ductile iron thermal analysis sampling device and
the metallurgical correlations, on the hardware and software user interfaces,
and on the preparation for reference case studies. 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) 2015 2014 2014 2013 |
| Number of Sampling Cups shipped 40,500 37,100 133,000 118,500 |
| Equipment 2.1 2.5 4.9 10.1 |
|1 |
| Series Production 16.3 11.6 47.8 40.2 |
|2 |
| Engineering Service 0.3 0.5 1.4 1.4 |
|3 |
| Other 0.1 0.0 0.4 0.2 |
| Total 18.8 14.6 54.5 51.9 |
| |
| 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 2015
revenue amounted to SEK 18.8 million (SEK 14.6 million). Revenue from series
production increased by 41% to SEK 16.3 million (SEK 11.6 million), due to
record annualised production of approximately 2.0 million (1.7 million)
Engine Equivalents and the increased shipment of 40,500 (37,100) Sampling
Cups. Equipment revenue amounted to SEK 2.1 million (SEK 2.5 million),
following the shipment of Mini-System 3000 installations to Doosan Infracore
in Korea and to an undisclosed engine component foundry in Japan. The total
equipment revenue for the first quarter of 2014 was higher due to the
shipment of a larger System 3000Plus
installation to the Zhongding Power foundry in China. Engineering Service
amounted to SEK 0.3 million (SEK 0.5 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) 2015 2014 2014 2013 |
| Operating Result 5.9 2.9 10.2 7.3 |
| Result for the period after tax 5.8 3.2 12.3 8.1 |
| Earnings per Share (SEK) 0.8 0.5 1.7 1.2 |
| |

TheJanuary-March 2015
operating result of SEK 5.9 million (SEK 2.9 million) increased as a result of
higher gross results of SEK 4.0 million primarily derived from higher revenue
and margin, combined with higher operational expenses of SEK 0.7 million and
increased operating expenses from exchange losses from operating receivables
and liabilities of SEK 0.3 million. The result for the period after tax
amounted to SEK 5.8 million (SEK 3.2 million), primarily related to the
increased operating result of SEK 3.0 million, the decreased financial net of
SEK 0.5 million (primarily unrealised revaluation losses derived from
outstanding hedge contracts), and decreased tax expenses amounting to SEK 0.1

Deferred Tax Asset
Tax amounted to SEK 0.0 million (SEK -0.1 million). The estimated future
taxable profit and deferred tax asset calculation is reassessed every
quarter. As of 31 March 2015, SEK 133.3 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 29.3 million (SEK 28.3 million)
being capitalised as a deferred tax asset.

Cashflow, Liquidity and Investments
| Cashflow Summary First Quarter January-March Cashflow Changes |
| (Amounts in SEK million if not otherwise stated) 2015 2014 2015 vs. 2014 |
| Cashflow from operations, before change in working capital 5.9 3.4 2.5 |
| Change in working capital -1.4 -5.5 4.1 |
| Cashflow from operations 4.5 -2.1 6.6 |
| Cashflow from investing activities -0.7 -0.1 -0.6 |
| |
|Cashflow from financing activities - - - |
| Exchange rate differences in cash and cash equivalents 0.0 0.0 0.0 |
| Cashflow total 3.8 -2.2 6.0 |
| Liquidity 48.7 45.6 |

TheJanuary-March 2015
cashflow from operations increased by SEK 6.6 million compared to the same
period in 2014, primarily due to an increase in cashflow from working capital
(SEK 4.1 million), derived from increased inventory (SEK 0.7 million),
increased receivables (SEK 3.3 million) and incre...

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