euromaint annual report 2009euromaint annual report 2009 euromaint rail ab sl brodepån...

EuroMaint Annual Report

2009

www.euromaint.com

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EuroMaint Annual Report 2009

EuroMaint Rail AB SL Brodepån Rysstorpsvägen 12 SE-197 91 Bro

EuroMaint Rail AB Växlarevägen 29 SE-170 63 Solna

EuroMaint Rail AB Box 7011 SE-121 07 Stockholm Globen

EuroMaint Rail AB Södertäljedepån Svalängsvägen 2A SE-151 38 Södertälje

EuroMaint Rail AB Parkgatan 5 SE-852 29 Sundsvall

EuroMaint Rail AB Västra Järnvägsgatan 8 SE-911 34 Vännäs EuroMaint Rail AB Kölgatan 4 SE-724 65 Västerås

EuroMaint Rail AB Box 302 SE-662 27 Åmål

EuroMaint Rail AB Varuvägen 34 SE-125 30 Älvsjö

EuroMaint Rail AB Box 1502 SE-701 15 Örebro


EuroMaint Industry Head office

EuroMaint Industry AB SE-541 87 Skövde

EuroMaint Industry AB Fabriksvägen 53 SE-817 30 Norrsundet

EuroMaint Industry AB Box 36 136 SE-400 13 Göteborg

EuroMaint Industry AB Drottninggatan 2 SE-561 82 Huskvarna

EuroMaint Industry AB Nygatan 78 SE-462 32 Vänersborg

EuroMaint Industry AB Box 302 SE-662 27 Åmål

GermanyEuroMaint Rail Karl-Marx-Straße 39 D-04509 Delitzsch

WRS Westdeutsche Rail Service, part of the EuroMaint Rail group Wintgensstraße 91 D-47058 Duisburg

EuroMaint Rail Pariser Straße 300 D-67663 Kaiserslautern

EuroMaint Rail Werkstättenstraße 4 D-04319 Leipzig

WLS Waggon- und Lokreparatur Service, part of the EuroMaint Rail group Baerler Straße 70 D-47441 Moers

EuroMaint Rail Sinninger Straße 11 D-86697 Oberhausen/Bayern

BelgiumWLS Belgium PgmbHAachener Str. 166 B-4701 Eupen-Kettenis

LatviaEuroMaint Rail SIA Rupniecibas iela 39 Jelgava, LV-3008 Latvia

SwedenEuroMaint Group office

EuroMaint AB Landsvägen 50 A SE-172 63 Sundbyberg

EuroMaint Rail Head office

EuroMaint Rail AB Box 1555 SE-171 29 Solna

EuroMaint Rail AB Bangårdsgatan 8 SE-781 71 Borlänge

EuroMaint Rail AB Lötängsgatan SE-803 01 Gävle

EuroMaint Rail AB Box 36 136 SE-411 04 Göteborg

EuroMaint Rail AB Lokvägen 2 SE-694 35 Hallsberg

EuroMaint Rail AB Fartygsgatan 40 SE-261 35 Landskrona

EuroMaint Rail AB Södra Oskarsgatan 2 SE-582 73 Linköping

EuroMaint Rail AB Box 1134 SE-973 53 Luleå

EuroMaint Rail AB Lokstallsvägen 2 SE-972 45 Luleå

EuroMaint Rail AB Box 3503 SE-200 22 Malmö


EuroMaint Rail AB Verkstaden Blackvreten SE-195 95 Rosersberg

The NetherlandsRSB Rail Service Benelux b. v. Moezelweg 136 A NL 3198 LS Europoort Rotterdam

PolandLRS Polska sp. z o.o. ul. Sikorskiego 15 PL 55-200 Oława

USAEuroMaint Industry Inc. 50477 Pontiac Trail Wixom, MI 48393

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The businessGroup overview 4The CEO’s comments 6General description of activities 8EuroMaint Rail 12EuroMaint Industry 22

Board and managementThe EuroMaint Board 31Management teams 32Financial summary 34

Figures 2009 Directors’ report 36Statement of comprehensive income 38Statement of financial position 39Statement of changes in equity 41Statement of cash flows 43Notes 44Auditors’ report 66

Contents

EuroMaint – Annual Report 2009

4

Group overview

The maintenance company EuroMaint strengthens its customers’ competitiveness through services and products that increase the availability, reliability and service life of production equipment in the engineering industry and the rail transport sector.

EuroMaint’s head office is located in Sundbyberg and, apart from Swe-den, it has operations in Germany, Belgium, the Netherlands, Latvia, Poland, and the USA. EuroMaint’s two subsidiaries, EuroMaint Industry and EuroMaint Rail, operate within different customer segments – the engineering industry and the rail transport industry. EuroMaint Industry contributes to the efficiency of Swedish indus-try through maintenance and development of production equipment. EuroMaint Rail has long been the market’s leading maintenance partner for the rail transport industry in Sweden. At the end of 2009 the company signed a contract to acquire German firm RSM (Rail Service Management Group), making it the largest independent main-tenance company in Europe.

Brief facts about EuroMaint (2009) ■ The operating profit in 2009 amounted to SEK 128 million (118)■ Approximately 1,900 employees■ Owned by Ratos AB, which is one of Europe’s largest listed private

equity companies. Ratos is listed on NASDAQ OMX in Stockholm. Find out more about Ratos at www.ratos.se

■ President and CEO: Ole Kjörrefjord ■ A total of 85 per cent of turnover is attributable to the rail transport

industry and 15 per cent to the engineering industry■ Corporate website: www.euromaint.com

Group overview – EuroMaint

GROUP KEY FIGURES 2009 2008 2007

Operating income, SEK MILLION 2,537 2,324 2,067

Operating profit, SEK MILLION 128 118 67

Cash flow, SEK MILLION -62 87 -14

Operating margin, % 5 5 3

Equity/assets ratio, % 24 24 23

Average no. of employees 1,909 1,793 1,771

Sickness absence, % 4.4 3.8 4.7

OPERATING INCOME BY INDUSTRY

DefinitionsOperating margin = Operating profit/loss in relation to turnoverEquity/assets ratio = Equity and shareholder borrowings in relation to the balance sheet total

EuroMaint has operations in:

LuleåVännäs

SundsvallGävle

BorlängeVästerås Åmål

ÖrebroHallsberg

StockholmSkövde

LinköpingHuskvarna

GöteborgVänersborgLandskrona

MalmöJelgavaDelitzsch

DuisburgKaiserslautern

Leipzig M

Rail transport industry 85 %Engineering industry 15 %

Detroit Olawa

GentRotterdam

OberhausenMoers

2005 2006 2007 2008 2009

0

-20

-40

-60

20

40

60

80

100

2005 2006 2007 2008 2009

40

20

60

80

100

120

140

2005 2006 2007 2008 2009

1,400

1,200

1,600

1,800

2,000

2,200

2,400

2,500

CASH FLOW AFTER INVESTMENTS, SEK MILLION

OPERATING INCOME, SEK MILLION

OPERATING PROFIT, SEK MILLION

For 2007 and earlier, pro-forma information is provided.

2,32

4

2,53

7

1,87

2 2,03

7

2,06

7

118 12

8

114

100

67

87

-38

-62

-14

45

5

January■ EuroMaint Industry takes over maintenance and tool activities at

Husqvarna’s facility in Huskvarna, thus establishing itself in a new region.

■ EuroMaint Industry issues redundancy notices to 36 employees at its maintenance and tool facility in Hallsberg as a result of a drop in demand from a local customer.

■ EuroMaint Rail commences introduction of the RPS production system.

June■ EuroMaint Industry acquires EISAB Energi och Industriservice AB

with 35 employees and a turnover of SEK 129 million.

July■ EuroMaint Rail is commissioned by A-Train to refurbish its Arlanda

Express trains.

August■ EuroMaint Rail enters into cooperation with GE Transportation in

the areas of rolling stock maintenance and rail transport engineer-ing.

October■ EuroMaint Rail is commissioned by SJ to maintain 42 X40 trains

used for regional transport in Mälardalen.

November■ EuroMaint Rail signs a contract with Danish firm Siemens A/S for

maintenance of 36 electric locomotives for cross-border freight transport between Sweden, Denmark and Germany on behalf of DB Schenker Scandinavia.

December■ EuroMaint Industry signs a framework agreement with Renova for

maintenance of its waste incineration plant in Sävenäs.■ EuroMaint Rail acquires Skandiatransport’s maintenance work-

shop for rolling stock in Landskrona with 25 employees and a turnover of SEK 23 million.

■ EuroMaint signs a contract to acquire Germany’s largest independ-ent maintenance company for rolling stock – RSM – with around 800 employees and a turnover of EUR 94 million.

■ EuroMaint Rail re-organises its activities at the refurbishment workshop in Malmö and all 91 employees are issued with redun-dancy notices.

Important events after the end of the year:

January ■ A drop in demand forces EuroMaint Industry to issue 20 out of

36 employees at the mechanical processing facility in Skövde with redundancy notices.

Important events

Important events in 2009

■ EuroMaint Rail signs a contract with SJ to overhaul 15 RC6 locomo-tives.

■ Acquisition of RSM is concluded.

February■ EuroMaint Rail takes over maintenance activities for X40 trains in

Västerås. ■ Karl Ove Grönqvist is appointed the new CFO for the EuroMaint

Group.

March■ EuroMaint Industry transfers its mechanical processing activities

at the facility in Skövde to Noremech AB. The redundancy notices issued in January are withdrawn.

■ EuroMaint Rail withdraws redundancy notices issued to 91 em-ployees at the refurbishment workshop in Malmö.

6

“2009 has left a considerable mark on the Group’s development”

2009 was yet another successful year for EuroMaint. We have strengthened our positions within both the engineering and rail transport industries and have increased both our turnover and profitability despite the global recession. Thanks to our unique maintenance skills and a much stronger organisation, there is renewed confidence in EuroMaint Rail. The company’s acquisition of German firm RSM has made it a serious Pan-European player. Despite tough times for industry as a whole, EuroMaint Industry has been able to grow by expanding its offer and entering into cooperation with new customers.

Successes for EuroMaint RailAt EuroMaint Rail CEO Mats Önner has successfully developed the organisation – a number of new and very competent individuals have joined the management team, and work has begun to introduce lean production through the RPS production system. Work to develop the skills of and opportunities for all the company’s employees is also continuing in a structured manner. Focus on improved follow-up and assessment of completed work has resulted in improved key figures in all areas. Stability in our deliver-ies has increased significantly and customers have benefitted from the increasingly streamlined organisation. There is renewed confidence in EuroMaint Rail and all major contracts that were due to end during the year have been extended. Our largest customer SJ has also expanded its cooperation with us, with a commission to maintain forty-two X40 units – one of the world’s most modern pieces of rolling stock. Although EuroMaint Rail has long enjoyed a very strong position on the maintenance market in Sweden, it continued to win market shares in 2009, which I regard as the best evidence yet of the level of appreciation among customers for our skills and professionalism.

Acquisition of Germany’s largest independent maintenance companyAt the end of the year EuroMaint signed a contract to acquire Ger-many’s largest independent maintenance partner for the rail trans-port industry, RSM. This is the company’s largest ever acquisition. It strengthens EuroMaint Rail’s ability to continue growing on the expanding European maintenance market. The Group will also gain additional expertise, mainly in maintenance of freight carriages.

EuroMaint Industry takes on downturnUnder Nicklas Falk’s leadership EuroMaint Industry has cleverly been able to weather the downturn that hit Swedish industry in 2009. When important customers within the automotive industry reduced their volumes sharply because of falling demand, EuroMaint Industry estab-lished relationships with customers in other branches of industry. This is in line with the company’s strategies for future growth. However, EuroMaint Industry did not come through the downturn, which hit industry in general so hard, completely unscathed. Despite new customers and successful acquisitions, the company was unable to maintain profitability during 2009. The acquisition of EISAB Energi och Industriservice AB enabled the Group to establish a foothold in the power and energy sector and a base for continued expansion in southern and western Sweden. Among other things, a framework agreement has been signed with Renova for maintenance of its waste-fuelled district heating and power plant at Sävenäs in Göteborg and for development of a biofuel plant in Norrsundet. EuroMaint Industry has also integrated and streamlined the busi-ness in Huskvarna, which the company took over at the beginning of the year. The establishment of operations in the Småland region of Sweden has produced a number of new customers.

CEO Ole Kjörrefjord’s comments

7

EuroMaint – a highly skilled and reliable partnerOur vision is to be a leading partner for the maintenance of produc-tion equipment. This means that by being the most skilled, innovative and reliable maintenance partner on the market we can grow and take market shares both geographically and within new industries. We have a unique offer. We devote considerable energy to the task of constantly improving, renewing and streamlining maintenance processes. We have advanced systems support for our maintenance personnel and all our engineers are highly trained. Our contracts are adapted to suit the individual customer, and our aim is always to stand side-by-side with the customer. We will earn money when our customers do. As far as the rail transport industry is concerned, it’s all about increasing the availability of rolling stock. That is why we carry out maintenance whenever rolling stock needs it, no matter what the location. We use a remuneration model which means we get paid when trains are in service. In industry, reliable and efficient production is everything. Our aim is not to sell as many hours as possible but to find the best solution for the customer – something that is true for both train maintenance and assignments aimed at streamlining industrial pro-duction.

2010EuroMaint Rail is already Europe’s largest independent maintenance company within the rail transport industry, with a turnover that will probably exceed SEK 3 billion in 2010. And there is still immense scope within European freight and passenger transport; an increasingly deregulated maintenance market worth in excess of SEK 100 billion. For EuroMaint Industry there is considerable potential for continued development in the Nordic region alone, where the market is also worth over SEK 100 billion. Customers currently carry out a lot of maintenance in-house. EuroMaint’s challenge is to convince those customers that we can often carry out maintenance work even more effectively, helping them to achieve better profitability and greater efficiency – a challenge which I am convinced we can succeed in. I am extremely proud of the extensive skills and purposefulness exhibited by EuroMaint and look forward to the Group’s continued expansion. Expansion that will benefit us all – old and new customers, employees, partners, and owners.

Ole Kjörrefjord, President and CEO

8

General description of activities

EuroMaint must lead development within maintenance

EuroMaint’s vision is to be a leading maintenance partner on all the markets and in all the industries where the company operates. EuroMaint wants to be involved in and promote development of maintenance as a professional industry all of its own, contributing to customers’ productivity and cost-effectiveness.

EuroMaint’s business concept – offering effective maintenance and technical solutionsEuroMaint’s business concept is to increase availability, reliability and the service life of production equipment through effective maintenance and technical solutions. Customers who will derive the greatest benefit from this often own expensive production equipment, have high demands for availability and operational reliability, or require expertise and personnel that cannot be supplied effectively by internal maintenance organisations. Today, customers come mainly from the rail transport industry and manufacturing industry, but the customer base can be expanded to include other industrial segments. In order to be able to deliver effective solutions reliably, mainte-nance skills must be combined with technical know-how and an under-standing of the industry. That is why EuroMaint is organised according to industry. EuroMaint has extensive experience of maintenance involving industries with stringent demands on availability, operational reliability and efficiency. The company takes a structured approach to work to further improve processes and develop new maintenance methods. By remaining independent of equipment suppliers, the same motivation applies to EuroMaint as to customers – high availability for production equipment at the lowest possible cost.

EuroMaint’s strategies – securing leading positions EuroMaint’s overall aim is to increase turnover and income significantly during the period 2009 to 2011. In order to achieve this, both subsidiar-ies must continue to secure leading positions within their respective business areas. EuroMaint Rail is the largest independent maintenance partner for the rail transport industry in Europe. Its continued success is based on the company’s leading industrial process for maintenance of all types of rolling stock and associated components.

9

As far as work to streamline production processes and further develop control of the business is concerned, 2009 proved an intense year. All key figures have improved and the operation’s goals and results have been made apparent to employees. One important element in estab-lishing the industry’s best processes has been the introduction of the Rail Production System (RPS). EuroMaint Rail has long enjoyed a strong position in Sweden. At the end of 2009 the company took decisive action on expanding into Europe by signing a contract to acquire RSM, the largest independent maintenance partner for the rail transport industry in Germany. The ac-quisition of RSM gives EuroMaint Rail access to a network of workshops in Germany and the Netherlands, as well as joint ventures in Poland and Belgium. The business concentrates on providing maintenance so-lutions for the freight transport sector. EuroMaint Rail’s Pan-European offer for the freight transport sector has been further reinforced by the acquisition of Skandiatransport’s maintenance workshop in Landskrona in December 2009. EuroMaint Industry will build on a leading position within industrial maintenance in Sweden and the Nordic region based on its strong component and systems expertise. Establishments at strategic sites in Sweden provide EuroMaint Industry with a base for expansion into a variety of industry clusters. In 2009 the company cemented its position in the Göteborg region with the acquisition of EISAB, which has its head office in Vänersborg. Småland also became one of the company’s most important regions after EuroMaint Industry took over and integrated into its own business activities previously conducted by Husqvarna. During the year, ten or so new customers have been linked to the operation in Huskvarna.

Forms of cooperation adapted to customers’ needsEuroMaint satisfies a variety of maintenance requirements for various customers. Often the assignment is to maximise the availability or operational reliability of production equipment. Elsewhere assignments range from ensuring that the correct expertise is available to reducing costs. EuroMaint carries out prioritised elements of maintenance work and/or offers advice or takes over activities in order to create an effec-tive maintenance solution for the customer. The emphasis is on maintenance but EuroMaint can also draw on its knowledge and experience when analyses and recommendations are required for procurement of equipment, installations and upgrades, technical services, and special requirements for new equipment, includ-ing design and construction. It is becoming increasingly common for customer assignments not to be charged by the hour, but instead for there to be a contract model which assumes that the production equipment is reliable and available to the customer.

New industriesIt is EuroMaint’s ambition to establish activities in more industries where the company’s expertise and experience can create value for customers. Potential acquisitions or operational takeovers are continu-ously evaluated. An ability to provide the customer with value, market potential and potential improvements are just some of the important criteria used in an assessment of new operations and operational areas. Ratos is a strong and long-term owner, guaranteeing access to knowledge and capital for acquisitions as well as long-term develop-ment of the company.

10

General description of activities

Fragmented market with huge growth potential

EuroMaint operates on the market for maintenance of production equipment, a market that in most industries is fragmented from several perspectives. There are few major suppliers of industrial maintenance, and there are no market-leading companies or industries on the customer side either. Most production equipment is complicated and comprises a large number of different components, creat-ing wide variation in terms of the components for which customers require maintenance services.

The market as a whole is estimated to be worth SEK 60-70 billion in Sweden, with internal maintenance departments accounting for around 50 per cent. Of the 50 per cent supplied by external partners, around ten per cent is delivered within the framework of performance-based contracts. A number of different types of companies are active on the market – from machinery and systems suppliers to independ-ent, cross-industry suppliers like EuroMaint.

Good opportunities for growthThe relatively undeveloped market provides good opportunities for growth. Furthermore, production equipment is growing increasingly complex, which leads to increased specialisation and makes it difficult for companies to maintain the correct skills. This gives rise to demand for EuroMaint’s services. The share of external maintenance is increas-ing, and EuroMaint is in a good position to drive this development for-ward by establishing a solid reputation for external performance-based maintenance through additional successful customer relations.

Rail transport industry leads the wayThe rail transport industry is at the forefront of development of maintenance of production equipment as a profession in its own right. EuroMaint has, as a leading maintenance partner, close contact with customers – relationships that bring about further development of maintenance models, components and materials. Subsystems are also being improved to boost performance and reliability. The same potential exists within the engineering industry, although development of maintenance as a profession has been much slower. From a long-term perspective, the trend within all industries is for companies to focus more on their core activities. A large proportion of companies currently outsource transaction-intensive support services such as telephony, customer service, and property management, as well as technical services, such as IT and maintenance, which require additional knowledge and skills. The increased flexibility and access to recognised expertise indicates that this is a solution that will grow in popularity over time.

12

Overview of EuroMaint Rail

KEY FIGURES EUROMAINT RAIL 2009 2008 2007

Operating income, SEK MILLION 2,170 1,987 1,825

Operating profit/loss, SEK MILLION 168 87 63

Cash flow, SEK MILLION 42 134 2

Operating margin, % 8 4 3


Average no. of employees 1,514 1,472 1,510


EuroMaint Rail – In brief

EuroMaint Rail strengthens its customers’ competitiveness via services and products that increase the availability, reli-ability and service life of rolling stock. The company offers qualified technical maintenance and refurbishment of roll-ing stock and its components.


January■ Commission from French firm Veolia to maintain Kustpilen’s 11

motor coach trains on behalf of Östgötatrafiken and Länstrafiken i Kalmar.

■ Seven-year contract with British firm Arriva for maintenance of its Kinnekulle train.

■ Introduction of the RPS production system commences. ■ A comprehensive skills sharing programme is launched.

April■ Expanded cooperation with Jernbaneverket Bane Energi regarding

the overhaul and inspection of converters.

July■ Commission from A-Train to refurbish its Arlanda Express trains.

August■ Contract with Danish-Scottish firm DSB First for maintenance of

Västtrafik’s regional and commuter trains in Västra Götaland. ■ Strategic partnership with GE Transportation regarding rolling

stock maintenance and technology for the European rail industry.

September■ Commission from SL to maintain its track-mounted work ma-

chines.

October■ Commission from SJ to maintain 42 X40 trains used for regional

transport in Mälardalen.

November■ Contract with Siemens A/S in Denmark for the maintenance of

36 electric locomotives for cross-border freight transport between Sweden, Denmark and Germany on behalf of DB Schenker Scandi-navia.

■ Strategic partnership contract with Oslo-based maintenance com-pany Daimex aimed at strengthening each company’s competitive-ness in Norway.

December■ Acquisition of Skandiatransport’s maintenance workshop for roll-

ing stock in Landskrona.■ A contract is signed for the acquisition of Germany’s largest inde-

pendent maintenance company for rolling stock, RSM. ■ Activities at EuroMaint Rail’s refurbishment workshop in Malmö are

restructured. The 91 employees are all given redundancy notices.

EuroMaint Rail has operations in six countries: Sweden, Germany, Belgium,

the Netherlands, Latvia and Poland:

Operating profit/loss for 2009 excluding distributed Group costs

OlawaGent

Rotterdam Oberhausen

Moers

Years 2007 and 2008 include EuroMaint Track-support AB, which in 2009 became a business area within EuroMaint Rail.


2005 2006 2007 2008 2009

40

20

60

80

100

120

140

160

25

-25

50

75

100

125

150


2005 2006 2007 2008 2009


2005 2006 2007 2008 2009

1,000

800

1,200

1,400

1,600

1,800

2,000

2,200

87

168

100

63

108

134

42

-19

73

2

1,98

7 2,17

0

1,710 1,

818

1,82

5

0

Luleå

Vännäs Sundsvall

Gävle Borlänge

Västerås Åmål

Örebro Hallsberg

Stockholm Linköping Göteborg

Landskrona Malmö

JelgavaDelitzsch

DuisburgKaiserslautern

Leipzig

13

EuroMaint Rail – CEO Mats Önner’s comments

Best result so far – from uncertainty to growth

RSM possesses vital skills in the field of maintenance for the freight transport market and has a network of workshops in Europe. This acquisition has also created a platform for expansion of passenger train maintenance in Germany and neighbouring countries. Existing partnerships with the most important international opera-tors mean we already have a head start in this regard. With RSM’s help, EuroMaint Rail can create a strong independent alternative for mainte-nance in Germany, something that is missing at the moment. The acquisition of RSM is well complemented by our second acqui-sition – that of Skandiatransport’s maintenance workshop for rolling stock in Landskrona. The workshop is the only one in Sweden to be certified in accordance with German standards and enhances our Pan-European service offer.

Continued work with customers, quality and deliveries in 2010Targeted and proactive maintenance work is helping to increase the availability and the reliability of our customers’ rolling stock. In 2010 we must continue to improve our processes and raise quality levels for deliveries. Our objective for the year is to secure our first maintenance contract within passenger transport on the continent and conclude Pan-European contracts within the freight transport sector. We are humbled by the work ahead and well aware that success re-quires earning our customers’ trust every day. The strong organisation we are in the process of developing gives us good scope for achieving our goals this coming year.

Mats ÖnnerCEO of EuroMaint Rail

Uncertainty, challenges and changes all left their mark on the company in 2009. If we look back now, we can see that all the hard work and deep commitment has paid off – we have kept our promises to both customers and owners, we have shored up our business, improved all our key figures and established an organisation that now puts us in an excellent position to expand into Europe.

At the start of 2009 almost 70 % of our turnover was up for renegotia-tion. This was proof of a market with tougher competition conditions and steadily increasing quality demands from customers. Thanks to firm leadership, the purposefulness of our employees, and considerable commitment from all parties, we managed to secure every contract on the table – in addition to some new ones. We also managed to ensure the stability and predictability required within our production organisa-tion to be able to continue improving the quality of our delivery. We laid the foundation for a management system and an organisation that can continue to grow both at home and internationally. EuroMaint Rail achieved its profit and turnover targets for 2009. The operating profit amounted to SEK 168 million and turnover to SEK 2,170 million. This is the strongest result in the company’s history.

Advances thanks to RPS The key to this success has been the introduction of our Rail Produc-tion System (RPS), which is our own version of lean production. We are working with shared values and principles, creating standardised work-ing methods over which we have complete control and can improve on. All to reduce waste and create added value for our customers, owners and employees.

Clearer leadershipLeadership of the organisation has been strengthened by supporting managers in their roles and giving them clear responsibility for the results achieved by work groups. Leadership has moved out “on to the shop floor” – our workshop managers now work in close physical prox-imity to their teams, and we monitor teams’ performances. To safeguard skills, we launched a skills sharing programme in 2009. We have employed structured methods to assess the performance of all employees and have outlined the professional skills we would like to see throughout our organisation – business acumen, result-orientation, taking responsibility, an ability to improve and show initiative, as well as communication and cooperation.

Largest in Europe To realise EuroMaint Rail’s full potential and achieve our growth target, we need to expand beyond Sweden’s borders. And that is precisely what we did in 2009, with a contract to acquire RSM, Germany’s largest independent maintenance partner for the rail transport industry. This acquisition makes us Europe’s largest independent maintenance part-ner with a unique Pan-European offer.

14

In December 2009* EuroMaint Rail signed a contract to acquire RSM, Germany’s largest independent maintenance company for rolling stock. This acquisition signalled the beginning of EuroMaint’s international expansion.

RSM has approximately 800 employees and recorded a turnover in 2008 of EUR 94 million. The company has workshops in Germany and the Netherlands, as well as joint ventures in Poland and Belgium. It focuses primarily on maintenance of freight carriages and locomotives for freight transport. Private players are responsible for an increas-ingly large share of rail freight transport, and RSM has a market share of about 50 per cent of maintenance for private freight carriages in Germany. EuroMaint’s business models and knowledge of maintenance for the rail transport industry will, with this acquisition, be utilised on new geographical markets. Development on the international rail market provides good scope for international expansion:• Rail companies are winning market shares within freight transport • Private operators are increasing their share of the market and their

international operations• Deregulation means that national rail companies want to expand

onto new international markets • With this acquisition, EuroMaint Rail is in an excellent position to

achieve economies of scale in many areas, including provision of spare parts, process development, documentation, and technical development.

* The acquisition of RSM was concluded in January 2010 when EuroMaint took over share ownership and the operation.

Freight transport – immense potential in EuropeMaintenance of rolling stock for freight transport is a Pan-European operation. Consequently, a geographical network of technically skilled maintenance workshops is a considerable competitive advantage. EuroMaint Rail already has a very strong position in terms of mainte-nance of carriages and locomotives for freight transport in northern Sweden. The acquisition of Skandiatransport’s maintenance workshop in Landskrona provides an important link with the continent and com-plements the acquisition of RSM. The methods developed by EuroMaint Rail on the Swedish market to increase availability of rolling stock, particularly for passenger transport, can also be employed internationally and can contribute to increased income for owners and operators of rolling stock.

Passenger transport – a strong independent alternative in EuroMaintThe combination of RSM’s workshop network and EuroMaint Rail’s skill when it comes to maintenance solutions for passenger transport cre-ates a strong independent alternative for maintenance of rolling stock for passenger transport, something which Germany lacks at present. EuroMaint Rail has a head start, having operated as an independ-ent maintenance partner on an already deregulated market. In recent years, the company has established partnerships with the most impor-tant international operators on its domestic market.

Private players winning more commissionsA number of major public procurements relating to regional passen-ger transport will be launched in the next few years in Germany. The trend in recent years has been for more and more commissions to be awarded to private operators. Maintenance is largely provided by the operators themselves, but there is scope for establishing strategic partnerships before these major procurement processes begin.

Acquisition benefits all business areasThere is no strong private player within component servicing in Ger-many, which means there are good opportunities for EuroMaint Rail’s componentreprocessing activities to do well in the future.EuroMaint Rail and RSM both offer renovation and refurbishment services for working rolling stock fleets. Even here, there is no strong

EuroMaint Rail – Internationalisation and growth

EuroMaint Rail looksto Europe

15

private alternative with international coverage, which bodes well for continued expansion. The Pan-European workshop network also inspires confidence and provides capacity for offering maintenance services for work machines for rail work and overhead contact system work.

Facts about RSM

Turnover: EUR 94 million in 2008 No. of employees: around 800 Geographic presence: Germany and the Netherlands, as well as joint ventures in Poland and Belgium Activities: offers maintenance services and refurbishment for all types of rolling stock for freight and passenger transport

16

EuroMaint Rail – On the market

The acquisition of RSM makes EuroMaint Rail Europe’s largest independent maintenance company for the rail transport industry. In Sweden the company has enjoyed a very strong market position. The greatest potential for growth exists overseas, but thanks to improved and more reliable customer deliveries the market share in Sweden increased during 2009.

EuroMaint Rail strengthens the rail transport industry’s competitive-ness through customised and innovative maintenance concepts, as well as attractive and efficient refurbishments of rolling stock and its components. The company’s vision is to become Europe’s leading supplier of maintenance services for all aspects of the rail transport industry. EuroMaint Rail’s market share for maintenance of rolling stock in Sweden has increased, thanks partly to renewed trust on the part of the company’s largest customer, SJ. Customers belong to three very different segments: passenger transport, freight transport, and rail infrastructure.

Downturn in 2009 but positive long-term trendRail transport in general has experienced good development in the past decade. However, freight transport has fared less well in the eco-nomic downturn that began at the end of 2008, which is also the case for large parts of the business community in general. This downturn continued in 2009, but towards the end of the year there were signs of a recovery that is expected to continue in 2010. The passenger transport sector weathered the downturn better, due in part to the environmental advantages of trains, and demand remained constant throughout 2009. Demand within rail infrastructure also remained stable.

Passenger transport: More foreign players – and customers Sweden has one of the most deregulated rail transport industries of any country in Europe. As a result, new operators are joining the market all the time. In 2009, Hong Kong-based firm MTR was just one company to establish a presence in Sweden – as an operator on Stockholm’s underground. Just over 40 foreign operators are active in Sweden, but SJ still occupies a unique position with a market share of about 40 per cent of the entire rail transport market. For EuroMaint Rail, new players represent an opportunity for new customer relations. Examples of international rail operators that are active in Sweden: the British operators Arriva and First Group; the French companies Keolis and Veolia Transport (formerly Connex), Germany’s DB, Nor-way’s NSB, and the Danish operator DSB. The majority of these are EuroMaint Rail customers. French firm Veolia has established itself on new lines during the year and has begun operating on the profitable long-distance lines

Europe’s leading independent maintenance company

17

Stockholm-Göteborg and Stockholm-Malmö, which previously could only be operated by SJ.

Operators competing on experienceIncreased competition between operators means that they are now not just competing on departures and punctuality. Competition these days increasingly involves creating positive travel experiences. Comfortable seats, entertainment systems, food, shopping, and Internet access are just some examples of competitive devices. This contributes to demand for EuroMaint Rail’s services for, among other things, refurbishment.

Freight transport: Green Cargo market leader Freight transport in Sweden is run on the main network by state-run Green Cargo, which is one of EuroMaint Rail’s biggest customers. On the smaller lines, there are a number of private operators. EuroMaint Rail has for some time enjoyed a strong position in freight carriage maintenance in northern Sweden. The acquisition of Skandiatransport’s maintenance workshop in Landskrona provides a firm foothold for the establishment of freight carriage maintenance in southern and central Sweden. With the acquisition of Germany’s largest independent mainte-nance supplier RSM, EuroMaint Rail now has a unique Pan-European service offer for rail transport industry players.

Rail infrastructure: InfraNord largest customerSwedish company InfraNord (formerly Banverket Produktion) is EuroMaint Rail’s largest customer for services relating to rail infra-structure. Other important players are infrastructure maintenance companies like Strukton, for example. EuroMaint Rail offers all manner of maintenance services for work machines in workshops and out in the field. During the year, there has been increased demand from the Norwegian market also.

New demands on maintenance operations In addition to the market changes occurring as a result of changed regulations on the market, EuroMaint Rail has identified a number of other important market trends: • Operators are moving forward in the value chain and tend to focus

on their core business. To an increasing extent, they are handing responsibility for maintenance over to specialist providers such as EuroMaint Rail.

• The increase in traffic that has characterised the last few years has led to increasing demands on the availability of rolling stock, which means that the capacity of trains needs to be utilised to the maximum. Consequently, demand for efficient maintenance of roll-ing stock for passenger transport is increasing. Maintenance must, to a much greater extent, be carried out on site and during off-peak periods, such as at weekends and at night.

• Reliability is becoming a more important factor. When rolling stock is used intensively, there is increased demand for longer periods of operation with no maintenance stoppages.

Three types of competitorEuroMaint Rail’s competitors in Sweden can be divided into three categories: • Traditional railway administrators and operators who carry out main-

tenance in-house • Independent maintenance partners that also work with other indus-

tries• Rolling stock manufacturers present on different geographical markets.

Public transport companies

Operators Rolling stock owner

Rolling stock manufacturer

EuroMaint Rail(Maintenance

company) EuroMaint Rail(Refurbishment

company)

Passengers

Freight

Infrastructure

Conditions

18

EuroMaint Rail – The offer

EuroMaint Rail is the rail transport industry’s leading pro-vider of services that increase the availability, reliability and service life of rolling stock. The company is an expert in, and has experience of, all types of passenger and freight trans-port as well as infrastructure work.

The company’s network of workshops in Sweden stretches from Luleå in the north to Malmö in the south, and there are mobile service teams which are called out when damage needs to be repaired at the side of the track or at the customer’s premises. The acquisition of RSM means that EuroMaint Rail is now also establishing its own operations in Germany and the Netherlands, as well as through joint ventures in Poland and Belgium. Read more about the acquisition on pages 14-15.

Turnkey commitments with availability contractsAvailability and reliability are essential to rail operators. Rolling stock must, as far as possible, be available for use. EuroMaint Rail takes full responsibility for rolling stock availability through effective mainte-nance, so that our customers can concentrate on their core activities. Maintenance is increasingly governed by contracts that are based on the customer paying for the number of kilometres over which the rolling stock is available for use. These availability contracts enable the customer to know what the maintenance costs will be in advance.

Passenger transport – high demands for availabilityFor customers involved in passenger transport, EuroMaint Rail provides maintenance and refurbishment services, making passenger transport safe, punctual and comfortable. Comfortable travel is an increasingly important competitive edge for customers involved in passenger transport. The main offer is turnkey commitments, i.e. availability contracts. EuroMaint Rail gets paid when trains are in service and can optimise maintenance and long-term planning for maximum efficiency. This offer extends to all types of rolling stock for passenger transport: motor coaches, passenger carriages, and electric and diesel locomotives.

Freight transport – maintenance prevents expensive stoppagesCost-effectiveness and reliability are essential to customers in the freight transport sector. Faults that cause downtime to a fully laden freight train can often mean delays and large costs. EuroMaint Rail’s workshops carry out all types of preventive and corrective maintenance. They also carry out more extensive main-tenance and provide technical upgrades for locomotives in order to extend the service life of rolling stock. Wheel problems are the most common reason for a freight train stopping out on the line. A stationary freight train can prove expensive, with major cost factors including reloading, replacement transport, delays, and moving the damaged train. For that reason, EuroMaint Rail has developed a unique solution for turning wheels in the field that provides huge time and cost savings.

Rail infrastructure – reliability is essential When it comes to infrastructure work, the reliability of rolling stock is essential – a work machine stoppage can cause major delays and expense. Thanks to its extensive experience, considerable product knowledge and a high degree of technical skill, EuroMaint Rail is able to guarantee the function of such machines. EuroMaint Rail’s offer includes maintenance and component servicing for all types of track-mounted machines for rail work and overhead contact system work.

The range of services – caters for all track-mounted vehiclesEuroMaint Rail’s nationwide maintenance organisation has the neces-sary skills to offer, for example, preventive maintenance as per the rolling stock’s maintenance plan, corrective maintenance in the event of damage, as well as daily maintenance for all manner of rolling stock. The aim is to optimise maintenance – by monitoring recurring faults and proposing long-term development solutions, among other pos-sibilities.

Increased availability and reliability

19

Traffic maintenance – everything from preventive to daily measuresPreventive maintenance is carried out largely during operational breaks so that rolling stock is in service as much as possible. Corrective main-tenance is carried out either by mobile service teams or in connection with preventive maintenance measures. EuroMaint Rail is also being given greater responsibility for daily maintenance, including, for example, terminal services, graffiti removal, shunting, and cleaning. This enables the company to remedy faults earlier on as well as plan for more efficient workshop work. EuroMaint Rail’s offer also includes products that facilitate maintenance, for example, frost alarms, graffiti protection, and remote monitoring systems.

Mobile service teams at workshopsMost of EuroMaint Rail’s workshops have mobile service teams who can assist with everything from comfort-related faults to derailments or breakdowns. The mobile units work beside the track or at strategic loading points such as ports and industrial areas.

Extensive overhauls During the course of its service life, rolling stock is taken to the work-shop on a number of occasions for more comprehensive maintenance procedures, so-called overhauls. A number of EuroMaint Rail’s work-shops specialise in overhauling different types of rolling stock.

Rapid process for reprocessing of componentsEuroMaint Rail reprocesses components for all types of rolling stock. Through an integrated approach to component replacement in con-nection with traffic maintenance and overhauls, the throughput time for rolling stock at the workshop is reduced. Components are removed and replaced with new reprocessed components, ensuring that rolling stock can leave the workshop after only a very short stay.

Technical services for improved maintenanceEuroMaint Rail’s engineers and technicians within rolling stock and sys-tems engineering offer a number of highly qualified technical specialist services, including technical investigations or consultations, develop-ment of maintenance plans and technical documentation, LSC analyses, etc.

RefurbishmentThe aim of refurbishment is to improve traveller comfort and train inte-riors while also extending the service life of rolling stock. EuroMaint Rail can also eliminate traffic safety deficiencies and maintenance problems so that future maintenance assignments are reduced.

20

EuroMaint Rail – Customer projects

EuroMaint Rail customer projects

Refurbishment of Arlanda ExpressIn 2009, EuroMaint Rail was commissioned to refurbish seven Arlanda Express train sets to further improve traveller comfort and increase capacity. A-Train is investing almost SEK 100 million in its rolling stock – with a new design and a brand new travel experience. “EuroMaint Rail has offered us good technical solutions at an attrac-tive price and with a full understanding of our ambitions for the travel experience. Since 2005, we have worked very closely with EuroMaint Rail regarding the maintenance of the Arlanda Express – high-quality maintenance that has continuously yielded 99.9 per cent availability for our rolling stock,” says A-Train’s CEO Per Thorstenson.

Maintenance on behalf of Danish firm DSB FirstWhen Västtrafik chose DSB First to operate its regional and commuter services in Västra Götaland, DSB First in turn chose EuroMaint Rail as its partner for rolling stock maintenance. The new contract means EuroMaint Rail will provide maintenance services for Västtrafik’s trains until 2019.

Refurbishment and maintenance of convertersIn 2009, EuroMaint Rail concluded several contracts relating to the refurbishment and maintenance of train power converters. On behalf of the Swedish Rail Administration (Banverket), EuroMaint Rail will equip 21 voltage converters with new brushless exciters that reduce contamination of the converters and thus also costs for inspection and maintenance. Two contracts have also been signed with Jernbaneverket Bane En-ergi of Norway concerning the overhaul and inspection of its converters. The overhaul will be extensive and means that, in addition to custom-ary maintenance measures, the converters will be equipped with new monitoring equipment and magnetising equipment.

21

EuroMaint Rail strengthened its organisation and work processes significantly in 2009. An extensive skills sharing programme has helped to ensure that the organisation has the skills it needs to move forward. A clearer organisation, improved leadership and the introduction of lean produc-tion are important conditions for long-term competitive-ness.

EuroMaint Rail operates on a market experiencing considerable change – change that the company is helping to drive. Requirements from customers are increasing and competition is getting tougher. In order to ensure that the company has the skills required, an extensive skills sharing programme was launched in 2009. All employees, regard-less of position, were involved in the process. The programme aimed also to promote the idea of feedback on employees’ efforts, as well as clarify expectations. Other elements of the programme involved defining special re-quirements for professional competence for each position and general competence requirements, including, for example, business acumen, responsibility, and the ability to improve and cooperate. All employees were asked to perform a self-assessment, and all managers had to assess their teams. The team assessments were completed at validation meetings attended by other manag-ers. The aim of validation was to ensure as objective an assessment as possible. All employees received individual coaching during the programme, and all managers received training in assessing skills and performance and holding development discussions. With support from external coaches, development discussions were held and development plans prepared for all employees. This working method will be used again in the future and will contribute to greater clarity in requirements and expectations, better assessment of performance, and the creation of conditions for straightforward management. The programme has also clarified career pathways within the com-pany. All job vacancies will be advertised internally and internal recruit-ment will be encouraged.

RPS – our production systemA critical part of the company’s development has been the introduc-tion of lean production, or RPS (Rail Production System), as the production system is called. RPS establishes values, principles and methods which together with the organisation’s structure and culture contribute to long-term development of the company. The objective is creation of value for customers, employees and owners through constantly improved work processes and elimination of waste. The focus in 2009 was on achieving order and method in the work-place and introducing daily control. Today, work is monitored on a daily

Systematic work for long-term competitiveness

basis using a number of key figures. The outcome is a shared vision for how the business ought to develop, collaborative learning, and a suit-able basis for joint decisions on improvements.Work to implement EuroMaint Rail’s values and principles will contin-ue in 2010. These values have to do with attitudes towards customers, owners and employees, and it is these that provide the basis for the principles that guide all elements of this work at the company. When these principles are adhered to, they ensure cost-effective deliv-eries of a high standard at the right time and a safe and healthy work-ing environment for the company’s employees. The principles are: take the lead from customers’ needs, plan, standardise, balance and adjust, right from me, act now, visualise, and continuous improvement.

Stronger organisationThere have been several organisational changes at EuroMaint Rail during the year. One such change was former subsidiary EuroMaint Tracksupport becoming the Work Machines business area at the be-ginning of the year. Another involved recruiting a number of individu-als with considerable industrial experience to serve as members of the management team. The preferred organisational structure is now in place, and acquired activities (RSM and Skandiatransport’s workshop) are being integrated into the organisation.

Reliable deliveriesThe delivery quality offered by EuroMaint Rail plays a vital role in ensuring safe rail transport. All the workshops where EuroMaint Rail operated in 2009 have quality and environmental certification in ac-cordance with ISO 9001 and ISO 14001 respectively. The company has well-established systems in place for traffic safety work, including, for example, training, authorisation systems, and health inspections.

EuroMaint Rail – Commercial development

22

KEY FIGURES EUROMAINT INDUSTRY

2009 2008 2007

Operating income, SEK MILLION 386 363 271

Operating profit/loss, SEK MILLION -3 13 0

Cash flow, SEK MILLION -22 -14 -15

Operating margin, % neg. 3.6 0


Average no. of employees 384 289 261


EuroMaint Industry strengthens its customers’ competi-tiveness via services and products that increase the avail-ability, reliability and service life of production equipment. The company refines production processes, develops and manufactures customised production equipment and is also a turnkey supplier of maintenance services and component servicing.


January■ The takeover of maintenance and tool operations at Husqvarna’s

facility in Huskvarna provides 64 new employees, a new customer base, and a foothold in a new region.

■ Order for two IPV stations from Indian-American company Tata-Cummins.

■ Redundancy notices are issued to 36 employees at the main-tenance and tool operation in Hallsberg because of a drop in demand from the area’s main customer.

June■ The acquisition of EISAB Energi och Industriservice AB, with 35

employees and a turnover of SEK 129 million, strengthens our presence in the energy sector and provides an important starting point for continued expansion in southern Sweden.

September■ Commission to design, manufacture and install a new production

line for CC Pack in Tibro.

October■ Commission to manufacture, install and insulate pipe systems at

Stora Enso’s pellet factory in Norrsundet.

December■ Framework agreement with Renova for maintenance of its waste-

fuelled district heating and power plant in Sävenäs.

Overview of EuroMaint Industry

EuroMaint Industry – In brief

Operating profit/loss for 2009 excluding distributed Group costs


2005 2006 2007 2008 2009

363 38

6

307

231

271

150

100

200

250

300

350

400


2005 2006 2007 2008 2009

13

25

0

-8 -3

-10

-15

0

10

15

20

25


2005 2006 2007 2008 2009

-14

-15

-27 -2

2

42-10

-20

-30

0

10

20

30

40

EuroMaint Industry operates in Sweden and the USA:

GävleÅmål

Skövde Huskvarna Göteborg

VänersborgDetroit

23

EuroMaint Industry – CEO Nicklas Falk’s comments

We have cemented our position and maintained delivery capabilities

We have said goodbye to a very difficult year. 2009 was one of the toughest years in the history of Swedish industry, and this has naturally had an effect on both EuroMaint Industry and our customers. Despite falling demand we have contin-ued to develop in line with our strategic plan, which focuses on strong growth. During the year, we have expanded through acquisitions, established ourselves in a new region, and struck up partnerships with new customers.

Our customers within the engineering industry are experiencing perhaps their most difficult period ever. When the downturn began in 2008, no one had any idea how hard it would hit Swedish industry. By November 2009 there were 390,000 unemployed in Sweden. During the third quarter of 2009 GNP fell by 5.0 per cent compared with the same period in 2008.

Foothold in Småland thanks to HusqvarnaEuroMaint Industry has kept busy despite the economic downturn. A milestone in 2009 was the establishment of operations in the Små-land region, based at Huskvarna. We took over Husqvarna’s mainte-nance operations in January and spent the year streamlining mainte-nance and reducing costs for the customer. We also put a lot of effort into our sales work, which resulted in partnerships with ten or so new customers in the region. The takeover at Huskvarna means we are now also responsible for the manufacture of die casting tools. Our objective is to become a national player that can supply companies with advanced tools, as well as associated servicing and maintenance.

Energy – an important new industry The acquisition of Vänersborg-based EISAB in June gives us a platform for expansion in the growing market for maintenance for incineration plants. This acquisition also strengthens our offer and our presence in the west of Sweden. The energy sector has survived the downturn rela-tively unscathed and there is a constant need for maintenance. Renova, the leading recycling company in the west of Sweden, has joined us as a new customer. We will provide maintenance services for the waste-fuelled district heating and power plant in Sävenäs – one of the world’s most advanced facilities for energy recovery.

Pleased despite everythingWe were prepared for a tough year and despite everything that has happened we are pleased to have made it through the economic dif-ficulties. We realised early on that we would be unable to achieve our profit and turnover targets, even though we had put measures in place to reduce costs and win new assignments. The operating loss for 2009 amounted to SEK -3 million, and turnover to SEK 386 million.

We have done everything possible to retain our skilled employees dur-ing this problematic year. It is vital to possess the right skills to ensure a head start when the upturn comes. Unfortunately, we were forced to make considerable redundancies at our facilities in Hallsberg after our local customer there decided to carry out maintenance in-house instead due to a drastic drop in demand.

A brighter 2010As we welcome 2010, the situation within the engineering industry seems less gloomy than it did a year ago, meaning we can start to look ahead with renewed hope. When I look ahead, I see continued industrial and geographical expansion, an enhanced offer within important segments, and organic operational growth through additional acquisitions and operational takeovers. Our aim is to continue to help our customers to streamline their production processes. In 2009, we cemented our position and main-tained our delivery capabilities. Now that the economy is on the up, we stand ready to pursue continued growth.

Nicklas FalkCEO of EuroMaint Industry

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EuroMaint Industry operates on the maintenance market and helps streamline industry. Customers are found predomi-nantly in Sweden, but the number of partnerships with for-eign companies is growing. 2009 was characterised by falling demand, but a recovery has begun and EuroMaint Industry sees good opportunities for the future.

EuroMaint Industry’s ambition is to develop a leading position within industrial maintenance in Sweden and the rest of the Nordic region by drawing on its expert knowledge of components and systems. Establishments at strategic sites will provide a base for expansion into a variety of industry clusters.

Presence in important industry clustersThe company’s customers belong to a wide range of industries, includ-ing foodstuffs, the manufacturing industry, the automotive industry, energy, and pulp and paper. Proximity to customers is essential, which is why the company has established operations in four of Sweden’s largest industry clusters – Gävle, Göteborg, Huskvarna and Skövde. Each region has a distinctive character:• Gävle focuses on pulp and paper and the steel industry• Göteborg focuses on foodstuffs, the manufacturing industry, and

incineration plants• Huskvarna focuses on smaller manufacturing companies anddie

casting• Skövde focuses on the manufacturing industry.

The ambition in the long term is also to be represented in Mälardalen and Skåne, where the pharmaceutical industry is an important niche market. Although a lack of demand from industry forced EuroMaint Industry to issue redundancy notices to production staff in Hallsberg/Örebro in 2009, it is hoped that the company will continue to be ac-tive in the region.

Market growthIndustrial companies are continuing to take care of maintenance and production efficiency internally. Large industrial companies tradition-ally have an internal maintenance department that is responsible for production equipment. The long-term trend is for maintenance services,

The industry is beginning to recover

EuroMaint Industry – On the market

25

and other specialist services, to be taken over by companies whose core business is maintenance. The aim is to reduce costs and focus on core activities. Underlying growth on the market for maintenance of production equipment in the engineering industry in general is limited, but the share of external services is increasing, and the market is expected to achieve annual growth of about five per cent.

Strong offer within energy and die castingEuroMaint Industry must grow and play an active part in development of the market. Acquisitions are one element of the growth strategy and in 2009 EISAB Energi och Industriservice AB with approximately 35 employees was acquired. This acquisition strengthened the company’s presence in the power and energy sector, with a particular emphasis on incineration plants. It also provides a foundation for continued expansion in southern and western Sweden. Småland became one of the company’s most important regions in 2009, after EuroMaint Industry took over activities from Husqvarna at the start of the year and integrated them into the business. An ad-ditional ten or so customers have been attracted by the operation in Huskvarna and expansion in this region is set to continue.

Falling industrial demand in 2009There has been immense pressure on EuroMaint Industry’s custom-ers in 2009 caused by falling demand and the need to save money. However, a drop in demand and production can provide an opportu-nity to spend more time on maintenance, evaluating the situation, and change. Effective, adapted production can help companies to reduce costs quickly and prepare for an eventual recovery. The company’s customers who are involved in the manufactur-ing and pulp and paper industries will see their situations improve in 2010, although the recovery itself will be slow. Within the power indus-try, demand will remain at the same relatively good level as in 2009. There will probably be a low rate of investment in basic industry for the next few years, but this will gradually pick up as demand improves.

Customers in different industriesEuroMaint Industry’s customer base is fragmented – no one industry or customer dominates. The company works with a wide offer for dif-ferent branches of Swedish industry. Some examples of customers in Sweden are Arkivator (manufacturing), DIAB (manufacturing), Renova

(energy), Sandvik (workshops), Scania (automotive), Stora Enso (pulp and paper), AB Volvo (automotive) and Volvo Cars (automotive). The number of foreign partnerships is increasing all the time, and in 2009 several important international deals were secured, including delivery of IPV equipment for Tata-Cummins’ engine factory in India.

Different types of competitorCompetition in terms of maintenance and production equipment ef-ficiency is fragmented. For maintenance, four main competitor groups can be identified in addition to internal maintenance departments. These are:• Volume suppliers – relatively large companies with a broad range of

services that are not industry-specific• Industry players – companies that operate in a certain sector orin-

dustry• OEM companies, Original Equipment Manufacturers – manufactur-

ers of production facilities that also offer aftermarket services for their own equipment

• Niche players – companies that position themselves through a unique offer, such as providing a specific product, service or area of expertise. In this case, proximity to customers is important, and the offer is slightly narrower than for volume suppliers, meaning value creation for customers is the main competitive tool. EuroMaint Industry belongs to this group.

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At the heart of EuroMaint Industry’s offer is the desire to promote more efficient industrial production. By improv-ing the availability and reliability of production equipment and prolonging its service life, we increase our customers’ competitiveness. The company works with customers in most branches of industry in Sweden and is an independent partner with broad competence.

EuroMaint Industry offers preventive, corrective, restorative and improving maintenance, helping customers to better control their equipment and increase efficiency. The company develops and stream-lines maintenance processes and supplements these with ongoing maintenance services, provision of spare parts, troubleshooting, and component repair. The objective is long-term customer relations, and business mod-els build on transparency and clarity and, as far as possible, provide incentives to ensure that both parties benefit from production being as efficient as possible.

Production development – designing solutions for more efficient production EuroMaint Industry helps customers to evaluate, plan and implement changes in production. The company possesses skills ranging from layout, altered flows and workplace design to optimisation of control systems. The offer includes design and construction of solutions for more efficient production and full responsibility for implementation.

Maintenance engineering and operational support – support in achieving effective maintenanceEuroMaint Industry helps its customers to achieve effective main-tenance. The company analyses operational reliability, classifies machinery, and clarifies actual conditions. Such analyses are used to produce action plans for increased efficiency, reliability and safety in production.

In addition to analyses and strategies, EuroMaint Industry is also able to implement proposed measures, whether technical maintenance services or operational maintenance measures – from day-to-day activities to major machine renovation. EuroMaint Industry stream-lines production and maintenance processes and carries out preven-tive, corrective, restorative and improving maintenance.

Component servicing – ensures availability of componentsEuroMaint Industry supplies spare parts, skilled maintenance and processing of mechanical, electronic and technical components as well as new production of tools for die casting, for example. Services range from troubleshooting and inspections to optimisation, repair, refurbishment and advice. Economies of scale and specialist skills are important competitive advantages.

Automation of production processes – development and production of special equipmentThe aim of these services is, for instance, to provide an increased rate of production and improved operational reliability, fewer stoppages, and a safer working environment. EuroMaint Industry’s lengthy experi-ence of special machines and automation of production processes in combination with the company’s independence guarantees the best solution for each customer.EuroMaint Industry is an established supplier of special equipment, particularly for the automotive industry. International expansion is driven partly by the company accom-panying its Swedish customers to their production facilities overseas, and partly through the cultivation of new foreign customers.

IPV – testing during the production processIPV is a method for testing products during the actual production process. Components and the installation of parts are tested as part of the installation process, instead of after final assembly when faults can be difficult to identify and correct. In-process testing means prob-lems can be identified and rectified immediately.

EuroMaint Industry – Offer and benefit to customers

Contributes to more efficient industrial production

27

In IPV, EuroMaint Industry is combining its knowledge of production streamlining with modern technology as a means of improving the quality and efficiency of customers’ products and production processes. In 2009, Tata-Cummins ordered two IPV stations for its engine factory in Jamshedpur, India. With the aid of this IPV equipment, Tata-Cummins is able to ensure that it meets stringent requirements for, among other things, environmental impact and emissions, which is vital if it wants to comply with the automotive industry’s standards.

Successful operational takeoverThe long-term trend is for more and more industrial maintenance to be outsourced to external partners like EuroMaint Industry. One of the advantages of transferring maintenance to an external partner is that the new partner relationship stimulates efficiency within the operation. A company like EuroMaint Industry, which specialises in maintenance, can also develop unique expertise in the field for even greater efficiency and increased availability of equipment. However, any decision to transfer activities to an external partner requires care-ful analysis and a well-thought-out strategy. One company that has benefitted from outsourcing responsibil-ity for its maintenance department is Husqvarna. EuroMaint Industry has been in charge of Husqvarna’s former maintenance department since 1 January 2009. This has enabled Husqvarna to concentrate on its core activities, while employees involved in maintenance work can specialise and develop as part of the EuroMaint Group. At the same time, EuroMaint Industry’s expertise has been employed in streamlin-ing activities. The benefits for Husqvarna have included more effective maintenance and lower costs. For EuroMaint Industry’s part, this takeover inHuskvarna has helped the company gain a foothold in a new region andduring the year it attracted ten or so new customers in the area.

Building up effective internal maintenanceNot all companies want their maintenance department run by someone else. For industrial companies in a lot of sectors, EuroMaint Industry is on hand to help build up, develop and support an effective internal maintenance operation.

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EuroMaint Industry – Customer projects

EuroMaint Industry customer projects

New production line for CC PackIn 2009, EuroMaint Industry was commissioned to design, manufac-ture and install a new production line for CC Pack in Tibro, Sweden. The companies have been working closely together on stream-lining production since 2001, and when CC Pack developed a new technique for food packaging, the job of designing the production line went to EuroMaint Industry. “Our innovative technology allows for completely new packaging plus greatly enhanced energy efficiency and environmental protection in production,” explains Stellan Rylander, CC Pack’s CEO. Work to develop the new production line began in 2009 with deliv-ery scheduled for 2010.

Maintenance of waste-fuelled incineration plant for RenovaIn 2009, EuroMaint Industry signed a new framework contract for maintenance of the waste-fuelled district heating and power plant in Sävenäs with Renova, the leading recycling company in the west of Sweden. The heating and power plant in Sävenäs is one of the world’s most advanced facilities for energy recovery through waste incineration and provides approximately 30 per cent of the region’s district heating. “Any operating problems can have major consequences for the population of the region. Efficient maintenance increases reliability, and we can also reduce the stoppage times at the plant,” explains Göran Klamas, Works Manager at Renova. EuroMaint Industry has 15-20 people on site at Renova in Sävenäs, who work with preventive and corrective maintenance and repair the plant’s mechanical components.

29

There has been particular focus on integration of new activi-ties and development of the company’s management at EuroMaint Industry during 2009. At the end of the year, the company had around 370 employees at five sites in two countries.

In January 2009 EuroMaint Industry gained 64 new employees in con-nection with it taking over operations from Husqvarna. Another 35 or so employees joined the company after the acquisition of EISAB back in the summer. Both these events have had a very positive effect on the organisation. The business has expanded and the company has new and attractive skills. Integration of the operation in Huskvarna continued during the year, with training and information for the new employees playing an important part. For the HR function, integration work has also meant ensuring that the operation is quality and environmentally certified. Integration of EISAB will begin in 2010. EuroMaint Industry was forced to wind up operations in Hallsberg after its local customer decided to switch to in-house maintenance instead. The personnel laid off were offered help in finding new employment through services such as Trygghetsrådet and Startkraft.

Leadership development for all managersGood leadership and management are important competitive advan-tages and all managers need constant development. Particularly when it comes to change processes where company cultures mix and there is a great need for clear, uniform leadership. EuroMaint Industry has therefore put a lot of effort into leadership matters during the past year and has, for example, defined requirements for managers in the organisation relating to commitment, customer focus, understanding the role of manager, and a down-to-earth approach.

Recruitment of maintenance expertiseDespite the recession, EuroMaint Industry recruited around ten people in 2009, in addition to those who joined the company as a result of acquisitions and operational takeovers. The recession has, to some extent, provided scope for attracting coveted workers such as advanced maintenance engineers and mechanics, which EuroMaint Industry has utilised to the full.

Quality and environmentEuroMaint Industry has quality and environmental certification in ac-cordance with ISO 9001:2008 (quality) and ISO 14001:2004 (environ-ment).

Integration and leadership development in focus

EuroMaint Industry – Commercial development

As regards quality assurance, work has been ongoing during the year to develop processes where the focus is on getting each stage right – from enquiry to delivery. By identifying errors as they occur, it is possible to correct the problem and prevent it happening again in the future. Proc-ess development takes place in close cooperation with all parts of the organisation. Involvement at the development stage of the actual people who will be working with the process is a prerequisite for success.

31

EuroMaint – The Board

The Board of Directors

WILLE LAURÉN1943BSc Economics, Turku School of EconomicsBoard member since 2007

Previous employment:CFO at ITT AEG Fläktgruppen and Vice Presi-dent of ABB SverigeCurrent employment:Self-employedOther assignments:Moventas AB, Ostnor AB and Nobia AB

KNUT HANSEN1957MSc Engineering, Chalmers University of TechnologyBoard member since 2007

Previous employment:Project engineer at Consafe Engineering, Business Controller at Electrolux, CEO of Electrolux Logistics and CEO of Nordwaggon ABCurrent employment:Head of Logistics, Stora Enso

HENRIK JOELSSON1969MSc Economics, Stockholm School of Economics,MBA, INSEAD FranceBoard member since 2007

Previous employment:Management consultant at Bain & CompanyCurrent employment:Investment Director at Ratos Other assignments:Board member of Anticimex Holding AB and other companies in the Anticimex Group, Bisnode AB and deputy board member of Camfil AB

OLE KJÖRREFJORD1955MBA, Harvard Business SchoolBoard member since 2007

Previous employment:McKinsey & Company, Stockholm/Los AngelesNorges Eksportråd, New YorkCurrent employment: President and CEO of EuroMaint ABOther assignments:Chairman of the board at Hector Rail AB, Fleetech AB, Fleet 101 AB, Board member of Korsnäs AB

JONATHAN WALLIS1974MSc Economics, Stockholm School of Eco-nomics, BA Stockholm UniversityBoard member since 2007

Previous employment:Bain & CompanyCurrent employment:Senior Investment Manager at Ratos

PER GRANSTRÖM1964Tool makerBoard member since 2007

Previous employment:Euromation AB, Volvo Personvagnar ABCurrent employment:EuroMaint Industry ABOther assignments:Chairman of the local union, IF Metall

BERTIL HALLÉN1954Professionally trainedBoard member since 2001

Previous employment:Eriksberg’s shipyard, SJCurrent employment:EuroMaint Rail ABOther assignments:Chairman of SEKO Göteborg,Chairman of SEKO EuroMaint AB,Board member of Göteborgs Hamn AB

KARIN NYBERG1952Board member since 2008

Previous employment:SJCurrent employment:EuroMaint Rail ABOther assignments:President TJ (Transport and Railway) Associa-tion at EuroMaint,Board member of Sacoförbundet Trafik och Järnväg

32

EuroMaint

EuroMaint Rail

EuroMaint – Management teams

MATTIAS WESSMAN1974EngineerCIOEmployed since 2009

TRYGVE ENGELBERT1950Ph.DTechnical DirectorEmployed since 2009

OLE KJÖRREFJORD1955MBAPresident and CEO EuroMaintEmployed since 2008

PER GUVÅ1972MSc EngineeringManager RPS OfficeEmployed since 2009

LENA GELLERHED1968BSc EconomicsHR DirectorEmployed since 2007

URBAN FELTH1963MSc EconomicsFinance Director EuroMaintEmployed since 1984

ILONA ÖSTLUND1968MSc EconomicsEuroMaint Communications DirectorEmployed since 2008

STEFAN BENGTSSON1972MSc Economics Senior Key Account Manager Employed since 2009

HANS ÖHRLING1950MSc. BAActing Quality ManagerEmployed since 1989

GUSTAV JANSSON1952Business Area Manager Work MachinesEmployed since 1978

STEN NILSSON1955Business Area Manager RefurbishmentEmployed since 2009

MATS ÖNNER1956MBA, EngineeringCEO of EuroMaint RailEmployed since 2008

INGELA ERLINGHULT1962Business Area Manager ComponentsEmployed since 2009

HENRIK DAGBERG1972MBA, MSc Engineering Business Development Director EuroMaintEmployed since 2009

NICKLAS FALK1973BSc EngineeringCEO of EuroMaint IndustryEmployed since 2003

ULF MODÉ1953MSc EconomicsCFOEmployed since 2009

MATS ÖNNER1956MBA, EngineeringCEO of EuroMaint Rail Acting Business Area Manager AvailabilityEmployed since 2008

33

EuroMaint Industry

PATRICK SVENSSON1967MSc Economics, systems scientist CEO of EuroMaint Industry, Inc. Business Development DirectorEmployed since 2006

BO LENNARTSSON1952EngineerManager, Training and Technical DevelopmentEmployed since 1973

MAGNUS KRONA1979MSc EngineeringBusiness Area ManagerComponent ServicingEmployed since 2007

URBAN EKMARK1964MSc Engineering, Lic.Sc.Personnel, Quality and Environmental DirectorEmployed since 2000

KIM BERGHÄLL1966BSc EngineeringBusiness Area Manager Engineering Operational ReliabilityEmployed since 2004

ARNE MOLANDER1964BSc Financial ManagementMarketing and Sales ManagerEmployed since 2007

ULF SANDÉN1959MSc EconomicsCFO and Vice President Employed since 1989

PATRIK SAHLBERG1962BSc EngineeringBusiness Area Manager Automation, Vice President Employed since 1982

NICKLAS FALK1973BSc EngineeringCEO of EuroMaint IndustryEmployed since 2003

34

2009 2008 2007 2006 2006 2005 2004

INCOME STATEMENT Note 1) 1)

Net turnover 2,510 2,324 2,067 2,037 2,037 1,872 1,493

Operating expenses 4) -2,362 -2,165 -1,972 -1,902 -1,906 -1,734 -1,427

Other income/expenses 17

Income from participations in associated companies

Income from sales/disposals 1 -4 -4 1

EBITDA 175 159 96 131 127 139 66

Depreciation, amortisation and write-downs -42 -38 -27 -29 -25 -24 -19

EBITA 133 122 69 102 102 115 47

Amortisation and write-down of intangible assets -4 -4 -2 -2 -2 -1

Write-down of goodwill

EBIT 128 118 67 100 100 114 47

Financial income 1 3 6 3 3 1 1

Financial expenses 2) -59 -61 -61 -46 -12 -12 -11

EBT 70 60 12 57 91 103 37

Tax -13 -11 5 -5 -21 -10 15

Income from sold activities

PROFIT/LOSS FOR THE YEAR/PERIOD 57 49 17 52 70 93 52

Income attributable to parent company’s owners 57 49 17 52 70 93 52

Income attributable to minorities

2009 2008 2007 2006 2006 2005 2004

KEY FIGURES Note 1) 1)

EBITA margin (%) 5.3 5.2 3.3 5.0 5.0 6.1 3.1

EBT margin (%) 2.8 2.6 0.6 2.8 4.5 5.5 2.5

Return on equity (%) 11.9 11.5 - - 32.8 71.8 26.3

Return on capital employed (%) 10.4 9.8 - - 18.5 24.8 13.7

Equity/assets ratio (%) 24 24 22 - 24 18 11

Interest-bearing net debt 772 732 834 - 264 312 277

Debt/equity ratio 1.5 1.7 2.1 - 1.2 2.1 3.6

Average no. of employees 1,909 1,793 1,781 - 1,746 1,669 1,534

1) Pro-forma taking into account Ratos acquisition. 2) Excluding interest on shareholder borrowings. 3) As of 31-12-2009, equity includes shareholder borrowings of SEK 274 million. 4) The operating expenses for 2007 include SEK 44 million in restructuring costs.

2009 2008 2007 2006 2006 2005 2004

BALANCE SHEET Note 1) 1)

Goodwill 719 692 692 - 30 30 -

Other intangible fixed assets 23 14 18 - 12 14 -

Tangible fixed assets 202 208 196 - 131 132 119

Financial assets, interest-bearing - - - - - - -

Financial assets, non-interest-bearing 10 11 11 34 45 41

TOTAL FIXED ASSETS 954 925 917 - 207 221 160

Inventories 375 264 280 - 269 259 241

Receivables, interest-bearing - - - - - - -

Receivables, non-interest-bearing 776 675 609 - 507 434 322

Cash, bank and other current investments - 33 - - 45 66 14

Held-for-sale assets - - - - - - -

TOTAL CURRENT ASSETS 1,151 973 889 - 821 759 577

TOTAL ASSETS 2,105 1,897 1,807 - 1,028 980 737

Equity attributable to parent company’s owners 3) 516 447 406 - 249 178 81

Equity attributable to minorities - - - - - - -

Provisions, interest-bearing 15 19 35 - 39 38 41

Provisions, non-interest-bearing 22 32 21 - 32 40 5

Liabilities, interest-bearing 756 746 799 - 270 340 250

Liabilities, non-interest-bearing 786 644 545 - 438 384 360

Financial liabilities, other 10 8 - - - - -

Liabilities attributable to Held-for-sale assets - - - - - - -

TOTAL EQUITY AND LIABILITIES 2,105 1,897 1,807 - 1,028 980 737

Financial summary

35

Directors’ report 36Statement of comprehensive income 38Statement of financial position 39Statement of changes in equity 41Statement of cash flows 43Notes 44Auditors’ report 66

Figures 2009

36

Directors’ report

The Board of Directors and the CEO of EuroMaint Gruppen AB, corporate identification number 556731-5402, domiciled in Stockholm, hereby submit the annual report for business activities during the financial year 2009.

OwnersEuroMaint Gruppen AB is a wholly-owned company of EMaint AB, corporate identification number 556731-5378, domiciled in Stockholm, which is owned by Ratos AB. EuroMaint Gruppen AB acquired 100 % 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 engineering industry and the rail transport sector. EuroMaint’s companies are specialist companies. During 2009, the busi-ness has been run as two business lines organised under the subsidiaries EuroMaint Industry AB and EuroMaint Rail AB. EuroMaint Rail offers qualified technical maintenance and refurbishment of rolling stock and associated com-ponents. EuroMaint Industry contributes to the efficiency of Swedish industry through maintenance and development of production equipment. At Group level, industry-wide matters are pursued that promote the generation and identification of new activities, and help to maintain and develop the com-pany’s position as a leading maintenance partner. The Parent Company, EuroMaint Gruppen AB, owns, manages and administers securities in sub-sidiaries within the rail transport industry and the engineering and process industry, and conducts consultancy work and associated activities in relation to these. EuroMaint can be found throughout Sweden, from Luleå in the north to Malmö in the south, as well as Jelgava, Latvia and Detroit, USA. The head office is in Sundbyberg. Since 1 January 2010, the company has also been active in Germany, the Netherlands, Belgium and Poland.

The business environmentCustomers want to increase their profitability and competitiveness through the improved availability, reliability and service life of production equipment – regardless of the industry. EuroMaint improves, renews and streamlines maintenance processes.

Various means of potential growthWorld-class key activities on the domestic market are a necessary basis for the expansion planned by EuroMaint. Central to this process is the ability to show tangible benefits for new customers choosing EuroMaint as a maintenance partner. EuroMaint’s business model makes clear that, as an independent partner, it has the same goals as the customer when it comes to optimising activities for increased profitability and that the high level of quality at home can also be transferred to new markets. Work on continued internationalisa-tion of the business intensified during the year, and the results were manifest-ed at the start of 2010 when acquisition of the RSM Group in Germany was completed. So far in 2010, EuroMaint Rail AB has also been awarded mainte-nance assignments that will be carried out in Norway. Continued growth may be possible through acquisitions and operational takeovers in other industries where EuroMaint sees synergies that can be utilised within the maintenance group.

EmployeesOn 1 January, EuroMaint Industry took over the maintenance activities of Husqvarna, thus acquiring 64 new employees. In June, EISAB Energi och

Industriservice AB was acquired, with a further 35 employees now resident within EuroMaint. At the end of the year, EuroMaint Rail also signed contracts to acquire the maintenance workshops in Landskrona from Skandiatransport, with around 20 employees, and the company group RSM, whose main activi-ties are in Germany, with around 800 employees. Both deals were completed in January 2010. In January, EuroMaint Industry issued redundancy notices to 36 employees at its maintenance and tool operation in Hallsberg due to reduced demand from the customer in the area. In December, EuroMaint Rail reorganised its activities at the refurbishment workshop in Malmö and all 91 employees were issued with redundancy notices.

Environmental impactIt is true of all of EuroMaint Rail’s production areas that their environmental impact is borne by air, water and, less so, soil. Its activities are classified as envi-ronmentally hazardous, and require reporting to the environmental authorities. The environmental authorities decide whether the degree of environmental haz-ard requires licences or reporting. If EuroMaint Rail does not receive the envi-ronmental licences required for production, this can limit the company’s ability to fulfil its commitments to the customer. If there is a short delay in licences being issued, there is the possibility of switching workshop activities in order to limit economic damage. EuroMaint Rail’s units are obliged to submit reports in accordance with the Ordinance concerning Environmentally-Hazardous Activities and the Protection of Public Health (1998:899), with the exception of its activities in Örebro, which are subject to licence. Notifiable activities carried out by EuroMaint Rail include, for instance, vehicle cleaning, painting, de-icing, the handling of diesel fuel, etc. The licence requirement in Örebro is necessitated by the large workshop area as well as extensive use of chemicals in connec-tion with, for instance, vehicle cleaning, painting, etc. EuroMaint Industry does not carry out any operations that require licens-ing. Throughout EuroMaint Industry, operations have a limited environmental impact and therefore the financial risk is small.

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 turnover. The loss of one major customer or a significant customer contract would require significant adapta-tion of the companies’ administrative support functions as a result of the reduced turnover. During a transitional period, the profitability of companies would be reduced in any such scenario. However, as customer relationships often include several different contract territories with varying contract lengths, this risk is distributed over time. The company is also affected by the general trend in demand within each industry, where the pace of the recovery, particularly within freight transport and the industrial segment will be important during 2010.

Financial instruments and risk managementThrough its operations, EuroMaint is exposed to financial risks, including the effect of changes to prices on the loan and capital markets, exchange rates and interest rates. The Group’s overall risk management focuses on the unpredictability of the financial markets and strives to minimise potentially unfavourable effects on the Group’s financial results. Finance operations in the Group are centralised in EuroMaint AB’s financing function. The financ-ing function acts as an internal bank and is responsible for the sourcing of capital, cash management and financial risk management. The operations are regulated through the Group’s Financial Regulations.

37

Important financial risks include:

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 con-stitute market risks.– Currency risksCurrency risk refers to the risk that exchange rate fluctuations negatively affect the Group’s income statement, balance sheet and/or cash flows. Currency risk exists both in the form of transaction risk and translation risk.– Interest rate riskInterest rate risk refers to the risk of a negative effect on the Group’s profit due to changes in the market rates of interest.

Other risks– Credit riskCredit risk is the risk generated by the fact that the credit rating of the inves-tor’s counterparty can change in an unpredictable manner, thereby resulting in a loss for the Group.– Liquidity and refinancing riskRefinancing risk refers to the risk that the refinancing of mature loans is com-plicated or becomes costly and that EuroMaint therefore has difficulty fulfilling its payment obligations. Liquidity risk refers to the risk of difficulties fulfilling the obligations associated with financial liabilities.

For more information about financial risks, see Note 21.

Future developmentThe trends in the maintenance sector are the progression from being a pas-sive delivery organisation to becoming a proactive maintenance partner, from a cost-driven maintenance department to a value-creating maintenance pro-vider, and from pre-defined to condition-based maintenance. EuroMaint’s business logic and EuroMaint’s strategy are to develop part-nerships with customers and establish a business relationship where efficient maintenance pays off, i.e. EuroMaint gets paid when customers earn money on their equipment, rather than for implementing specific work tasks. Hourly rates for maintenance carried out are being replaced by conceptualised turn-key services. During 2009, EuroMaint has succeeded in off-setting the uncertainties and the fall in demand that arose due to the financial crisis. The expectations for 2010 are that the market conditions will stabilise and that the company will be well equipped when demand returns to more normal levels.

Significant events that occurred during the financial year or following the year endIn January, EuroMaint Industry issues redundancy notices to 20 employees at its department for mechanical processing in Skövde – a direct consequence of the weak market demand for these services. EuroMaint Rail signs a contract with SJ to overhaul 15 RC6 locomotives, which means, among other things, modifications to the locomotive’s driver space for increased driver comfort. Noremech AB signs a letter of intent for acquisition of the activities for mechanical processing at EuroMaint Industry’s facility in Skövde. The busi-ness employs 36 people. EuroMaint Rail takes over maintenance activities for X40 trains in Västerås. Karl Ove Grönqvist is appointed the new CFO for the EuroMaint Group.

The Parent CompanyEuroMaint Gruppen AB provides internal management services for other companies in the Group and handles intra-group financing activities with banks. Apart from that, there are no external activities. Turnover (in SEK 000s) amounted to 7,609 (4,458) and operating profit to -2,423 (-469). The profit/loss for the year amounted to -51,840 (-47,475).

Turnover and results

TurnoverTotal earnings amounted to SEK 2,537 million (2,324).

Operating profitOperating profit amounted to SEK 128 million (118), giving an operating mar-gin of 5 % (5 %).

Financial itemsNet financial income amounted to SEK -88 million (-84).

Cash flowCash flow for the period after investments amounted to SEK -52 million (87).

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

Proposed appropriation of profitsThe parent company’s profit/loss for the year was SEK -51,839,800.

Available to the Annual General Meeting, SEK:Fair value reserve -9,457,043

Profit brought forward 313,842,178

Profit/loss for the year -51,839,800

TOTAL 252,545,335

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

Carry forward 252,545,335

TOTAL 252,545,335

The income statement and balance sheet will be presented at the Annual General Meeting on 31 March 2010 for adoption.

38

Statement of comprehensive income

INCOME STATEMENT

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

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

OPERATING INCOME

Net turnover 24 2,509,690 2,315,946 7,609 4,458

Other operating income 3 27,394 7,909 - -

TOTAL OPERATING INCOME 2,537,084 2,323,855 7,609 4,458

OPERATING EXPENSES

Cost of goods and services sold -939,520 -835,401 -

Other external expenses 4,18 -424,995 -425,713 173 -469

Personnel costs 5 -987,839 -899,715 -10,205 -4,458

Depreciation 6 -39,928 -37,587 - -

Amortisation 7 -6,440 -3,987 - -

Other operating expenses 3 -9,975 -3,938 - -

TOTAL OPERATING EXPENSES -2,408,697 -2,206,341 -10,032 -4,927

OPERATING PROFIT 128,387 117,514 -2,423 -469

FINANCIAL ITEMS

Financial income 8 1,235 2,976 1 377

Financial expenses 8 -88,925 -87,087 -66,431 -65,672

NET FINANCIAL ITEMS -87,690 -84,111 -66,430 -65,295

PROFIT BEFORE TAX 40,697 33,403 -68,853 -65,764

Tax 9 -13,029 -10,979 17,013 18,289

PROFIT/LOSS FOR THE YEAR 27,668 22,424 -51,840 -47,475

OTHER COMPREHENSIVE INCOME

Translation reserve for the period 753 -1,077 - -

Hedging reserve -19,497 -6,326 4,807 -17,638

Finance leases - -1,579 - -

Tax attributable to other comprehensive income 5,128 1,664 -1,264 4,639

OTHER COMPREHENSIVE INCOME FOR THE YEAR -13,616 -7,318 3,534 -12,999

COMPREHENSIVE INCOME FOR THE YEAR 14,052 15,106 -48,297 -60,474

Parent company shareholders’ share of the profit/loss for the year 27,668 22,424 -51,840 -47,475

EARNINGS PER SHARE, UNDILUTED 276.8 224.2 -518.4 -474.8

Parent company shareholders’ share of the comprehensive income for the year 14,052 15,106 -48,297 -60,474

39

Statement of financial position

BALANCE SHEET

The Group The Group The Parent Company The Parent Company

SEK (000s) Note 31-12-2009 31-12-2008 31-12-2009 31-12-2008

ASSETS

FIXED ASSETS

Tangible fixed assets 6, 19 202,144 208,053 - -

Intangible fixed assets 7 742,041 706,039 - -

Participations in Group companies 10 - - 935,200 935,200

Deferred tax assets 9 9,771 10,500 3,375 6,510

Long-term receivable Group companies - - 24,500 -

TOTAL FIXED ASSETS 953,956 924,592 963,075 941,710

CURRENT ASSETS

Stock 12 374,961 264,353 - -

Accounts receivable 13, 23 364,543 309,903 523 -1,084

Receivables from Group companies 13 33,681 - 272,077 -

Tax assets 13 39,108 28,400 - -

Other receivables 13, 23 81,213 75,219 - 80,446

Completed, not invoiced 13, 25 156,781 193,458 - -

Prepaid expenses/accrued income 13 100,828 68,117 - -

Cash and cash equivalents - 33,302 71 2,074

TOTAL CURRENT ASSETS 1,151,115 972,752 272,671 81,436

TOTAL ASSETS 2,105,071 1,897,344 1,235,746 1,023,146

LIABILITIES AND EQUITY

EQUITY

Share capital 100 100

Other contributed capital 266,181 208,000

Reserves -19,325 -5,656

Profit brought forward including profit/loss for the year -5,111 849

EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS 241,845 203,293

RESTRICTED EQUITY

Share capital 100 100

NON-RESTRICTED EQUITY

Fair value reserve -9,457 -12,999

Accumulated profit 313,842 250,217

Profit/loss for the year -51,840 -47,475

TOTAL EQUITY 252,645 189,843

40

Statement of financial position (cont.)

BALANCE SHEET


SEK (000s) Note 31-12-2009 31-12-2008 31-12-2009 31-12-2008

Long-term liabilities

Long-term interest-bearing liabilities 14, 19, 21, 23 647,556 746,416 541,040 539,120

Shareholder borrowings 14, 21, 23 273,813 244,112 273,813 244,112

Provisions for pensions and similar obligations 11 15,376 19,033 - -

Other provisions 15 14,708 18,840 - -

Deferred tax liabilities 9 6,858 12,791 - -

Other long-term liabilities 22,960 26,090 22,960 26,090

TOTAL LONG-TERM LIABILITIES 981,271 1,067,282 837,813 809,322

Current liabilities

Advance payment from customers 16 32,648 71,770 - -

Accounts payable 16, 23 310,411 235,877 673 -

Liabilities to Group companies 16 45,726 21 140,492 22,445

Liabilities to credit institutions, interest-bearing 14 108,942 - - -

Other current liabilities 16 122,652 30,152 1,200 1,061

Accrued expenses/deferred income 16 261,576 288,949 2,924 475

TOTAL CURRENT LIABILITIES 881,955 626,769 145,289 23,981

TOTAL LIABILITIES 1,863,226 1,694,051 983,102 833,303

TOTAL EQUITY AND LIABILITIES 2,105,071 1,897,344 1,235,747 1,023,146

Pledged assets and contingent liabilities

Pledged assets, floating charges 17 - - 209,900 93,287

Contingent liabilities 17 - - - -

41

Statement of changes in equity

EQUITY The Group Share capital Other con-tri-buted capital

Profit brought forward inclu-

ding profit/loss for the year

Reserves Total equity

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

Total comprehensive income for the period - - 20,845 -5,739 15,106

Closing equity 31-12-2008 100 208,000 849 -5,656 203,293

Opening equity 01-01-2009 100 208,000 849 -5,656 203,293

Adjustment to translation reserve - - 53 -53 -

Adjusted opening equity 01-01-2009 100 208,000 902 -5,709 203,293

Comprehensive income for the year - - 27,668 -13,616 14,052

Shareholder contributions - 58,181 - - 58,181

Group contributions received/given - - -45,700 - -45,700

Current tax attributable to Group contributions - - 12,019 - 12,019

Closing equity 31-12-2009 100 266,181 -5,111 -19,325 241,845

Change to translation reserve * Share capital

Opening translation reserve 01-01-2008 30

Change for the year from the translation of companies -1,077

Closing translation reserve 31-12-2008 -1,047

Opening translation reserve 01-01-2009 -1,047

Change for the year from the translation of companies 753

Closing translation reserve 31-12-2009 -294

CHANGE TO HEDGING RESERVE Share capital

Opening hedging reserve 01-01-2008 -

Change for the year -4,662

CLOSING HEDGING RESERVE 31-12-2008 - 4,662

Opening hedging reserve 01-01-2009 -4,662


CLOSING HEDGING RESERVE 31-12-2009 -19,031

* 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.

42

Statement of changes in equity (cont.)

EQUITY Parent Company Non-restricted equity

Share capital Accumulated profit

Fair value reserve

Profit/loss for the year

Total equity

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

Appropriation of profits -15,218 15,218

Total comprehensive income for the period -12,999 -47,475 -60,474

Group contributions received/given 79,771 79,771

Current tax attributable to Group contributions -22,336 -22,336

Closing equity 31-12-2008 100 250,217 -12,999 -47,475 189,843

Opening equity 01-01-2009 100 250,217 -12,999 -47,475 189,843

Appropriation of profits -47,475 47,475

Total comprehensive income for the period 3,543 -51,840 -48,297

Shareholder contributions 58,180 58,180

Group contributions received/given 71,803 71,803

Current tax attributable to Group contributions -18,884 -18,884

Closing equity 31-12-2009 100 313,841 -9,456 -51,840 252,645

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

The face value in the parent company is 1.

The Board proposes that no dividend be paid and that the total profit be carried forward. No dividend was paid last year.

CHANGE TO FAIR VALUE RESERVE

Opening fair value reserve 01-01-2008 -


CLOSING FAIR VALUE RESERVE 31-12-2008 -12,999

Opening fair value reserve 01-01-2009 -12,999

Change for the year 3,543

CLOSING FAIR VALUE RESERVE 31-12-2009 -9,456

The company applies hedge accounting for interest deri-vatives. See Note 1 for more information.

43

Statement of cash flows


SEK (000s) Note 01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

Operating activities

Profit after financial items 40,697 33,403 -68,853 -65,764

Depreciation/amortisation 46,368 41,574 - -

Other items not affecting liquidity 20 -14,400 3,763 39,894 10,766

Income tax paid -32,017 -14,113 - 18,759

Cash flow from operating activities before changes in working capital 40,648 64,627 -28,959 -36,239

Changes in working capital

Increase (-)/Decrease (+) in stock -29,968 18,252 - -

Increase (-)/Decrease (+) in accounts receivable -33,786 36,810 -1,607 2,089

Increase (-)/Decrease (+) in other current receiva-bles -93,391 -15,370 -66,534 250

Increase (+)/Decrease (-) in accounts payable 56,559 34,252 673 -814

Increase (+)/Decrease (-) in other current liabilities 49,921 67,146 72,420 173

Cash flow from operating activities -9,852 127,696 -24,007 -34,541

Investing activities

Acquisition of tangible and intangible fixed assets 6, 7 -24,699 -40,822 - -

Sale of tangible and intangible fixed assets 547 10 - -

Acquisition of subsidiary/business segment, net liquidity impact 20 -28,198 - - -

Investment, financial assets - - -2,496 -

Cash flow from investing activities - 52,350 -40,812 -2,496 -

Cash flow from operating activities -62,202 86,884 -26,503 -34,541

Financing activities

Received shareholder contributions 24,500 - 24,500 -

Borrowings 49,597 8,452 - 30,652

Amortisation loans -45,197 -62,034 - -

Cash flow from financing activities 28,900 -53,582 24,500 30,652

Change in cash and cash equivalents for the period -33,302 33,302 -2,003 -3,889

Cash and cash equivalents at beginning of period 33,302 - 2,074 5,963

Cash and cash equivalents at end of year 21 - 33,302 71 2,074

44

Notes

This annual report and the consolidated financial statements were adopted by the Board and the CEO on 3 March 2010 and are proposed for final adoption by the Annual General Meeting on 31 March 2010. Ratos formed 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 of the head office is Landsvägen 50 A, SE-172 63 Sundbyberg, Sweden. The parent company in the largest group to which EuroMaint Gruppen AB, 556731-5402, is a subsidiary and where the consolidated financial statements are drawn up is Ratos AB, 556008-3585, Stockholm. The most important accounting principles applied in the preparation of these con-solidated financial statements are listed below and have been applied consistently to all periods unless otherwise stated. The Group’s accounting principles have also been consistently applied by Group companies.

Statement of compliance with applicable regulationsEuroMaint Gruppen’s consolidated financial statements have been prepared in accord-ance with the Swedish Annual Accounts Act and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and interpretation statements from the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the EU. The consolidated financial statements are also prepared pursuant to the Swedish Financial Reporting Board’s Recommendation RFR 1.2 (Supplementary Accounting Rules for Groups). The accounting principles relating to the parent company correspond to the principles for the Group except as shown below under the heading The Parent Company. The parent company’s financial statements are prepared in accordance with the Swedish Financial Reporting Board’s Recommendation RFR 2.2 (Accounting for Legal Entities) and the Annual Accounts Act. Basis of preparation of the statementsThe accounts are based on historical acquisition costs, apart from certain financial instruments. 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. The estimates for accounting purposes that result will, by definition, rarely correspond to the actual results. EuroMaint’s best assumption, however, is that there are no critical assessments that may affect the evaluation of the company’s financial position. Estimates and assumptions are reviewed regularly. Changes to estimates are report-ed 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 bal-ance 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.

Testing the write-down requirement for goodwillGoodwill arising from business combinations represents the difference between the acquisition cost and the fair value of the acquired identifiable net assets. The write-down requirement for goodwill is tested once a year. The recoverable amount (i.e. the higher of value in use and fair value less selling expenses) is normally established based on the value in use, derived using discounted cash flow calculations. This in turn requires 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 conditions.

Obsolescence of stockIn value terms, stock consists mainly of items acquired according to an estimated maintenance plan for different train models. Since these cycles are long-term (5-12 years), there is an uncertainty in the assessment. The company has an obligation to stock items (spare parts) over a long period for individual train models, which have a very long economic and technical life.

Percentage of completion 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 refurbish-ment 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 prod-uct 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 busi-ness deal. For refurbishment work, there is a need for warranties as regards the customer, ranging from one up to two 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 makes provisions for this, but some uncertainty remains over the final outcome.

Changed accounting principles Changed accounting principles caused by new or changed IFRSBelow is a description of the changed accounting principles applied by the Group from 1 January 2009. Other changes to IFRS applied from 2009 have not had a significant effect on the consolidated financial statements.

Presentation of financial statementsSince 1 January 2009, the Group applies the changed IAS 1 Presentation of Financial Statements (2007). This change has meant that income and expenses, which were previously reported directly under equity, are now instead reported under other com-prehensive income, which the Company presents after the profit/loss for the year in an extended income statement called the “statement of comprehensive income”. The company has chosen to use the new titles for the statements introduced in IAS 1 (2007) – statement of comprehensive income, statement of financial position, state-ment of changes in equity, and statement of cash flows. Comparison periods have been thoroughly changed in the annual report so that they follow the new presentation. As the changes only affect the presentation, no sums have been changed, either with regard to earnings per share or other items in the financial statements.

Changes to IFRS 7 Financial InstrumentsDisclosures effective from 1 January 2009 affect the Company’s financial reporting from the Annual Report for 2009. These changes mainly mean that new disclosures of financial instruments are valued at fair value in the statement of financial position. The instruments are divided into three levels, depending on the quality of the input data in the valuation. The division into levels determines how and which disclosures must be provided for the instruments; where level 3 with the lowest quality for the input data is covered by more disclosure requirements than the other levels. These disclosure requirements have mainly affected Note 22 below. In addition, the change to IFRS 7 involves some changes with regard to disclosures of liquidity risk.

New IFRS and interpretations that have not been applied yetA number of new and changed IFRS only come into force during the next financial year and have not been applied in advance when preparing these financial statements. There are no plans for the future to apply new requirements or changes early. The revised IFRS 3 Business Combinations and the changed IAS 27 Consolidated and Separate Financial Statements involve, among other things, the following changes: the definition of a business is changed, transaction fees when combining businesses must be reported as an expense, conditional purchase sums must be recorded at the fair value at the time of acquisition and the effects of a re-evaluation of liabilities related to conditional purchase sums must be reported as income or an expense in the profit/loss for the year. Other innovations are that there are now two alternative ways of reporting minorities and goodwill, either at fair value, i.e. goodwill is included in the minority or the minority constitutes a proportion of the net assets. The choice between these two methods will be made individually for each acquisition. In addition, further acquisitions that occur after the controlling influence has been received are considered owner transactions and are reported directly under equity, which is a change to the Company’s current principle of reporting excess sums as goodwill. The revised and changed standards will be applied from the next financial year, i.e. from 1 January 2010. The changes will only have subsequent effects for EuroMaint.

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 influence. A controlling influence means the right to directly or indirectly shape a company’s financial and operating strategies in order to obtain economic benefits. A controlling influence arises when a shareholding totals more than half of the voting rights. When assessing if there is significant influence, shares potentially entitled to votes which can be used or converted without delay are considered. Intra-group transactions and balance sheet items, as well as profit on transactions between Group companies are eliminated. Losses are also eliminated, unless the trans-action provides evidence that a write-down requirement exists for the transferred asset.

NOTE 1 ACCOUNTING AND VALUATION PRINCIPLES

45

NOTE 1 Account ing and va luat ion pr inc ip les (cont . )

Business combinationsSubsidiaries 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 and any contin-gent liabilities. The group cost of the acquisition is determined through an acquisition analysis linked to the acquisition. The analysis determines both the acquisition cost for the participations or business, the fair value of the acquired identifiable assets on the acquisition day, and any assumed liabilities and contingent liabilities. The acquisition cost for the subsidiary shares or the business consists of the total of the fair value for assets received on the acquisition day, any liabilities that have arisen or been taken over and for any issued equity instruments offered as payment in exchange for acquired net assets, as well as transaction costs directly attributable to the acquisition. When combining businesses where the acquisition cost exceeds the fair value of acquired assets and any liabilities taken over, as well as contingent liabilities reported separately, the difference is recognised as goodwill. When the difference is negative, this is reported directly under profit/loss for the year. The statements for the subsidiary are included in the consolidated financial state-ments from the time of acquisition until the date when the controlling influence ceases. Transaction fees when combining businesses that run over the statement periods have been capitalised in accordance with statements from IFRIC. Capitalised transac-tion fees amount to SEK 16,762,000 as of 31-12-2009. Foreign currency – translationStatement currencyReceivables and liabilities in foreign activities, including goodwill and other group sur-plus and under values, are recalculated from the foreign business’s functional currency to the Group’s reporting currency, the Swedish krona, at the rate on the balance sheet date. When preparing the consolidated accounts, all items in the income statement for foreign subsidiaries are recalculated to Swedish krona using the average exchange rates, which constitutes 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 differ-ent 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 disposing of foreign activities, the accumulated translation differences attributable to the sold for-eign 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 reported.

Functional currencyAll subsidiaries use the local currency as the functional currency. Transactions are reported at the transaction day rate, 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 liabili-ties 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 for the parent company is Swedish krona.

Tangible fixed assetsOwned assetsTangible fixed assets are included at cost of acquisition, less accumulated depreciation and accumulated write-downs. The cost of acquisition includes the purchase price and costs directly attributable to the asset, such as the cost of getting it in place and in a condition so it can be used in accordance with the aim of the acquisition. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is likely that future economic benefits asso-ciated with the asset will flow to the Group and the 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 reported as fixed assets in the balance sheet and are initially valued 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 long-term and current liabilities. The leased assets are depreciated over the asset’s useful life, or if shorter over the agreed leasing period, while lease payments are reported as interest and the amortisation of debts. As a rule, assets leased under operating leases are not reported as an asset in the balance sheet. Operating leases do not give rise to a liability either.

Depreciation principlesTo allocate their acquisition cost down to the estimated residual value, there is straight-line depreciation according to plan of tangible fixed assets over the estimated useful life, according to the following percentages per year:

Category Depreciation yearMachinery and equipment 5-10Computers and terminals 3Improvements to property 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 recoverable amount (the higher of net realisable value and value in use) if the asset’s carrying amount exceeds its estimated recoverable amount. Profits and losses on disposals are determined by comparing the salesproceeds 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 at the time of acquisition minus any write-downs. Goodwill is recognised 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 and is tested for write-down requirements at least once a year. Goodwill is allocated to cash-generating units during testing for any write-down requirement. The write-down requirement for goodwill is tested 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 that goodwill is allocated to corresponds to the lowest level within the Group at which goodwill is monitored in the company’s management and is not a bigger part of the Group than one segment. A write-down requirement exists when the recoverable amount 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.

Customer and market-relatedAcquired intangible assets such as brands, customer-related assets and other similar items are capitalised and reported at acquisition cost less accumulated amortisation and write-downs.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.

Amortisation principlesAmortisation is reported in the profit/loss for the year over the estimated useful 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 write-down requirements annually, and as soon as indications arise that suggest that the asset in question has reduced in value. Intangible assets with determinable useful lives are amortised from the time when they are available for use. The calculated useful lives are:

Category Depreciation yearCustomer relations 8Technology 3

Investment property Investment properties are reported at fair value, which is the market value as deter-mined by external and internal valuers, which is normally done annually. Changes in fair value are reported in the income statement as a part of Other operating income. Subsequent costs are included in the asset’s carrying amount or recognised as a sepa-rate asset, as appropriate, only when it is likely that future economic benefits associ-ated with the asset will flow to the Group and the acquisition cost of the item can be measured reliably. The carrying amount of the replaced part is removed from the bal-ance sheet. All other types of repairs and maintenance are reported as expenses in the income statement during the period in which they arise.

46

Notes

Write-down of assets that are not financial Tangible and intangible assetsAssets that have an indefinite useful life are not depreciated, but are tested annually for any write-down requirement. The assets which are depreciated are assessed in terms of any write-down requirement whenever events or changes in circumstances indicate that the carrying amount is not recoverable. If it is not possible to significantly determine independent cash flows for an individual asset, and its fair value minus selling expens-es cannot be used, the assets are grouped to the lowest level when testing write-down requirements when 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 carrying value 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. A write-down is reported as a cost in the profit/loss for the year. Once write-down requirements 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. An asset, except goodwill, that has previously been written down is examined on each balance sheet date to determine whether a reversal is required.

Write-down of goodwill and intangible assetsThe carrying amount of an asset is examined every year. This examination involves cal-culating the recoverable amount, regardless of whether or not there is any indication of a decrease in value. In between, the value is examined if there is any indication that the value has fallen. A write-down burdens the income statement.

Financial instrumentsFinancial instruments reported in the balance sheet include, on the asset side, cash and cash equivalents, amounts receivable, derivatives and other receivables. On the liability side are accounts payable, loans, derivatives and other liabilities. A financial asset or financial liability is entered in the balance sheet once the com-pany has become a party to the instrument’s contractual terms. Accounts receivable are entered in the balance sheet when the invoice has been sent. Liabilities are entered when the counterparty has delivered and a contractual obligation to pay exists, even if an invoice has not yet been received. Accounts payable are entered when an invoice has been received. A financial asset is derecognised from the balance sheet when the rights in the con-tract have been realised, have matured or the company loses control over it. The same applies to part of a financial asset. A financial liability is derecognised from the balance sheet 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.

Classification of financial instrumentsThe Group classifies its financial instruments according to the following categories: financial assets or financial liabilities held for trading and measured at fair value through the income statement, loans and accounts receivable, liabilities valued at amortised cost and derivatives used for hedging purposes. The classification depends on the purpose for which the instrument was acquired. The classification is determined at the initial accounting and is re-assessed 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 assumptions based on the market conditions prevailing at the balance sheet date. Market rates of interest form the basis for calculating the fair value of long-term loans. For other financial instru-ments 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 statementThis 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 derivative 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 from the bal-ance sheet date. Financial assets measured at fair value via the income statement are measured at fair value both 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.

Loans receivable and accounts receivableLoans receivable and accounts receivable are financial assets that are not derivatives, with fixed or determinable payments that are not quoted in an active market. Loans

receivable and accounts receivable are reported initially at the acquisition cost, equiva-lent to fair value with additions for transaction costs, and are subsequently measured at amortised cost, using the effective interest method, less any provisions for deprecia-tion. A provision for depreciation of accounts receivable is established when there is objective evidence that the Group will not be able to receive the amounts due under the receivables’ original terms. The size of the provision is the difference between the asset’s carrying amount and the value of estimated future cash flows. Depreciation is reported in the income statement. Accounts receivable are deemed doubtful when they are 60 days past due. The write-down requirements for accounts receivable are determined based on historic experi-ence of customer losses for similar accounts. Accounts receivable with write-down requirements are reported at the present value of expected future cash flows. However, accounts with a short term are not discounted. Write-down of loans receivable and accounts receivable reported at amortised cost are reversed if the previous reasons for write-down are no longer valid and full payment from the customer is expected to be received.

Financial liabilities measured at fair value via the income statementThis category includes derivatives with negative fair value that are not used for hedge accounting, and financial liabilities that are held for trading. The liabilities are valued continuously at fair value, 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 reported and measured in accordance with IAS 39. Received premiums are reported as financial liabilities. When a valuation of the options at fair value through an option pricing model corresponds to the premium the company has received, this means that there is no cost to the com-pany initially. The liability is continuously revalued at fair value by applying an option pricing model, taking the existing conditions into account. Changes in value over the option’s term are reported as a financial item, as well as other income and expenses in respect of financial assets and liabilities. If a synthetic option is exercised by the holder, the financial liability, as previously revalued at fair value, is settled. Any realised profit is reported in the income statement as a financial item. If the synthetic options mature without value, the reported liability is taken up as income.

BorrowingLoans are reported initially at the loan sum including transaction costs, and are then reported at amortised 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 of the balance sheet date.

Accounts payableAccounts payable 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.

Derivative instrumentsThe Group uses derivative instruments in the form of futures to hedge parts of their exposure to currency risks in the continuous payment flows, as well as interest rate swaps to hedge parts of borrowings with variable interest rates. Hedge accounting is applied from 1 January 2008 inclusive. The effective portion of the hedging instrument’s change in value is reported under other comprehensive income and the accumulated changes in value in a specific component of equity, while the ineffective part is recog-nised in profit/loss for the year. In order to meet the requirements for hedge account-ing 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 sufficiently 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 accumu-lated changes in value in equity remain and are reversed to the profit/loss for the year. If a forecast transaction is no longer expected to take place, the accumulated change in value that has been recognised in equity is immediately transferred to profit/loss for the year. Derivatives with positive values are reported as assets and derivatives with nega-tive values as liabilities.

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

StockStock is valued at the acquisition cost or the net realisable value, whichever is low-est. The acquisition cost for stock is calculated using the first-in, first-out method and includes expenses that have been incurred from acquiring stock assets and transport-


47

ing 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 proportion 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 reported when there is a possible commitment that derives from events that have occurred and whose occurrence is only confirmed by one or more unsure future events or when there is a commitment that has not been reported as a liability or provision due to it not being credible that an outflow of resources will be required.

ClassificationThe fixed assets, long-term liabilities and provisions consist essentially of amounts that are expected to be recovered or paid more than 12 months after the balance sheet date. Current assets and current liabilities consist essentially of amounts that are expected to be recovered or paid within 12 months of 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 accordance with the existing legislation in each country. A current tax liability or asset is reported as the tax estimated to be paid or received for the current or previous years. Deferred tax is reported on all temporary differences arising from the difference between the tax value of assets and liabilities and their carrying amounts in the consoli-dated financial statements. Deferred tax is calculated by applying the tax rates and tax laws that have been decided or announced at the balance sheet date and are expected to apply when the deferred tax asset is realised or the deferred tax liability is settled. Deferred tax assets are reported for deductible temporary differences and unused tax loss carry-forwards to the extent it is likely that future taxable profits 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 con-tribution 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 reduc-tion of future payments can be credited by the Group. A defined benefit pension plan means that the employee is guaranteed a pension equivalent to a certain percentage of the final salary. The liability reported in the balance sheet for defined benefit pension plans is the present value of the defined benefit obli-gation at the balance sheet date less the fair value of plan assets. The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using the interest rate on government bonds with maturi-ties comparable to the current pension liability. Actuarial gains and losses that arise from experience-based adjustments and changes in actuarial assumptions in excess of the greater of ten per cent of the value of plan assets and ten per cent of the defined benefit obligation, are taken up as costs or income over the employees’ estimated average remaining service (the ten per cent corridor). Costs relating to past service are reported directly in the income statement, unless the changes in the pension plan are conditional on the employees remaining in service for a specified period (the vesting period). In such cases costs relating to past service can be allocated on a straight-line basis over the vesting period. For EuroMaint Gruppen AB’s acquisition of EuroMaint AB, assets and liabilities that are attributable to post-employment benefits have been reported at the present value of obligations and plan assets, as per IAS 19 point 108. This means that actuarial gains and losses that were incurred before the acquisition have been accounted for in the consoli-dated balance sheet, including those that may be attributed to exceeding the “ten per cent corridor”.

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

Termination benefitsTermination benefits are payable for an employee’s employment terminated before the

normal retirement date or when an employee accepts voluntary redundancy in exchange for such compensation. The Group reports the liability or cost when it is demonstrably committed either to terminating the employee according to a detailed formal plan without the possibility of revocation, 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 provi-sions 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 before 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 warran-ties, restructuring and pensions are reported under provisions.

Revenue recognitionRevenue is reported less VAT, any discounts and similar revenue reductions. Net turno-ver includes sales of services within maintenance, the refurbishment of rolling stock, and the maintenance and implementation of production facilities for the manufacturing industry. For maintenance deals, i.e. refurbishment deals, contract revenue is reported in rela-tion to the assignment’s completion rate, which comprises accrued contract costs com-pared to forecast contract costs. This accounting is based on the view that the perform-ance 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. For maintenance and the implementation of production facilities for the manufactur-ing sector, contracts exceeding SEK one million are also reported using the percentage of completion method.If an assignment’s final outcome cannot be estimated reliably but a loss is not expect-ed, revenue is reported as equivalent to accrued costs. 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 statement 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, write-downs of financial assets, and any such losses from hedging instruments reported in the profit/loss for the year.

Lease contractsOperating 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 ownership 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 amortisa-tion of outstanding liabilities. The interest charges may be allocated over the lease peri-od so that each accounting period 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. Information about related partiesRelated parties refers to the companies where EuroMaint or parties related to EuroMaint can exercise a controlling or significant influence in terms of operational and financial decisions. The circle of related parties also includes the companies and indi-viduals who have an opportunity to exercise a controlling or significant influence over EuroMaint Gruppen’s financial and operational decisions. Related party transactions are reported in Note 2.


48

Notes

Related individuals are defined as the Chairman and members of the Board, the CEO and other senior executives, and close relatives of such individuals. The other sen-ior executives are the four people who, together with the CEO, represent the Group Management. Remuneration to the Board and Group Management is presented in Note 6.

Earnings per shareEarnings per share is calculated using the profit/loss for the year for the Group attribut-able 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 poten-tial ordinary shares.

The Parent CompanyThe parent company’s financial statements are prepared in accordance with the Swedish Financial Reporting Board’s Recommendation RFR 2.2 (Accounting for Legal Entities) and the Annual Accounts Act.

Changed accounting principlesIn addition to or in contrast to the changed accounting principles specified above for the Group, the following changes affected the parent company in 2009. RFR 2.2 Accounting for Legal Entities specifies that the changed IAS 1 Presentation of financial statements must be applied with certain exceptions. One effect on the par-ent company compared with earlier statements is that other comprehensive income comes after the income statement. Another effect is that the statement of changes in equity has been given content similar to the Group’s. i.e. excluding the income and expenses previously reported directly under equity, but now reported in other compre-hensive income in the statement of comprehensive income. Furthermore, the parent company will also report an extra balance sheet, as of the start of the comparison year, in the annual accounts when retroactive changes have affected any item in the extra balance sheet to a significant extent.

Changes to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 27 Consolidated and Separate Financial Statements with regard to ’Cost of an Investment in a Subsidiary, Jointly-Controlled Entity or Associate’ are being applied from 1 January 2009. This change has meant that the parent company will now always report any dividend from subsidiaries in their entirety as income in the profit/loss for the year. Previously, dividends that are larger than profits received after the acquisition of the subsidiary reduced the carrying amount of participations in the subsidiary. This change has only had minor effects on the totals for items in the parent company’s financial statements.

Shareholder contributions and Group contributionsThe company reports Group and shareholder contributions in accordance with the statement from the Swedish Financial Reporting Board (UFR 2). Shareholder contribu-tions are entered directly in equity by the recipient and are capitalised in shares and participations by the donor, to the extent that no write-down is necessary. Group con-tributions 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 profit brought forward after deductions for the current tax effect. Group contributions that are equivalent to a dividend are reported as a dividend. This means that Group contributions received and their current tax effect are reported in the income statement. Issued Group contributions and their current tax effects are reported directly against profit brought forward. Group contributions that are equivalent to shareholders’ contributions are reported, with regard to the current tax effect, by the recipient directly in profit brought forward. The donor reports the Group contribu-tion and its current tax effect as investing in participations in Group companies, to the extent that no write-down is necessary.

Financial instruments and hedge accounting Due to the link between accounting and taxation, the rules on financial instruments 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. The acquisition cost for interest-bearing instruments is adjusted for the amortised dif-ference between what was originally paid, following deductions for transaction costs, and the sum paid on the due date (premium or discount).Forward agreements used to hedge currency changes for receivables and liabilities 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. Interest rate swaps that effectively hedge cash flow risk in interest rate payments 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 relationship commenced. Any premiums paid for the swap agree-ment are amortised as interest over the term of the agreement.


49

NOTE 2 TR ANSAC TIONS WITH REL ATED PARTIES

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

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

Sales of goods and services

DIAB 77 2,044 - -

Purchase of goods and services

Anticimex - 14 - -

Camfil 35 13 - -

GS-Hydro - 3 - -

Lindab 63 84 - -

MCC 30 20 - -

Financial expenses

EMaint (Ratos) 29,700 26,543 - -

Receivables from related parties

Ratos 33,680 - 33,680 -

Liabilities to related parties

Anticimex - 2 - -

Camfil 1 10 - -

GS-Hydro 45,700 - 45,700 -

Lindab 9 9 - -

EMaint (Ratos) 273,813 244,112 273,813 244,112

MCC 16 - - -

The following table provides details of the transactions with related parties.

Income Expenses

Anticimex Material purchase

Camfil Material purchase

GS-Hydro Material purchase

Lindab Material purchase

MCC Material purchase

DIAB Maintenance services

EMaint (Ratos) Interest expenses

Companies in Note 2 are companies within the Ratos Group. Information on remuneration paid to senior executives can be found in Note 5.

NOTE 3 OTHER OPER ATING INCOME AND OPER ATING E XPENSES


01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-2008 31-12-2008

Other operating income

Profit on the sale of fixed assets 254 55 - -

Exchange gains on receivables/liabilities of an operating nature 22,321 6,287 - -

Rental income 2,494 1,155 - -

Other 2,325 412 - -

TOTAL 27,394 7,909 - -

Other operating expenses

Loss on the sale of fixed assets -50 -259 - -

Exchange losses of an operating nature -9,925 -3,679 - -

TOTAL -9,975 -3,938 - -

50

Notes

NOTE 4 AUDITORS’ FEES


01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

KPMG

Auditing assignments 1,521 827 - -

Other assignments 159 72 - -

Ernst & Young

Auditing assignments - 535 - 50

Other assignments 54 137 - -

TOTAL 1,734 1,571 - 50

Auditing assignments refer to the review of the annual report and accounting as well as the administration by the Board 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 2009 are taken by the subsidiary EuroMaint AB.

NOTE 5 AVER AGE NUMBER OF EMPLOYEES AND PERSONNEL COS TS


01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

The average number of employees broken down by gender is

Sweden

Female 147 142 - -

Male 1,726 1,613 1 1

TOTAL 1,873 1,755 1 1

USA

Female 1 1 - -

Male 6 8 - -

TOTAL 7 9 - -

Latvia

Female 3 3 - -

Male 26 26 - -

TOTAL 29 29 - -

Group total

Female 151 146 - -

Male 1,758 1,647 - -

TOTAL 1,909 1,793 - -

Board members

Board members

Female 1 2 1 1

Male 12 21 7 7

TOTAL 13 23 8 8

CEOs and other senior executives

Female 2 4 - -

Male 21 20 1 1

TOTAL 23 24 1 1

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

51

NOTE 5 AVER AGE NUMBER OF EMPLOYEES AND PERSONNEL COS TS (cont . )

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

01-01-200931-12-2009

01-01-200831-12-2008

Salaries and other remuneration in Sweden

The Board and CEO 8,046 6,986

Including bonuses and comparable remuneration 450 -

Other employees 668,781 593,373

TOTAL SALARY AND OTHER REMUNERATION 676,827 600,359

Payroll overheads 309,357 290,269

Of which pension expenses 77,091 69,045

Salaries and other remuneration in USA

The Board and CEOs - -

Including bonuses and comparable remuneration - -



Payroll overheads 1,188 1,127

Of which pension expenses 240 225

Salaries and other remuneration in Latvia

The Board and CEOs - -

Including bonuses and comparable remuneration - -



Payroll overheads 1,518 921

Remuneration to senior executives

PARENT COMPANY 2009 2008

SEK (000s) Salary Other benefits Payroll over-heads

Of which pen-sion expenses

Salary Other benefits Payroll over-heads


CEO 2,087 1 1,268 552 2,605 148 1,500 607

In 2009 and 2008, EuroMaint Gruppen had the CEO as the sole employee.

THE GROUP 2009 2008

SEK (000s) Salary Other benefits Payroll over-heads


Salary Other benefits Payroll over-heads


CEOs 8,359 215 5,371 2,429 5,198 262 3,157 1,387

Other senior executives 14,717 611 9,233 4,162 14,889 1,041 9,068 3,903

Remuneration and other benefits during the period The Chairman of EuroMaint Gruppen AB received a fee of SEK 300,000 (300,000) in 2009, with other Board members receiving SEK 150,000 (150,000). If employed by Ratos, no fee applies. Union representatives on the Board have received an attendance fee of SEK 63,000 (63,000). During the period, the CEO of EuroMaint Gruppen AB received a salary totalling SEK 2,087,000 (2,605,000) and has use of a company car and utilised other benefits totalling SEK 1,000 (148,000). The CEO’s retirement age is 65. The CEO has a defined contribution pension promise of 30 % of monthly pensionable remuneration. The notice period is twelve months for both the company and CEO and during this time, salary is paid with full adjustment against other income. Upon termination by the company, the company also pays twelve months’ non-pensionable severance pay with full adjustment against other income. Other CEOs and other people in the company management have signed individual contracts regarding severance pay and notice. These amount to a maximum of twelve months’ salary with full adjustment against other income as well as twelve months’ non-pensionable severance pay with full adjustment against other income. Some employees in EuroMaint have signed synthetic options. However, these are not bound to each employee’s employment.

52

Notes

NOTE 6 TANGIBLE FIXED A SSE TS

NOTE 7 INTANGIBLE FIXED A SSE TS

SEK (000s) 2009 2008

THE GROUP Goodwill Customer relations

Technology Total Goodwill Customer relations

Technology Total

Opening accumulated acquisition cost 692,110 10,938 6,847 709,895 692,110 10,938 6,847 709,895

Acquisitions of subsidiaries 26,537 - 15,905 42,442 - - - -

CLOSING ACCUMULATED ACQUISITION COST 718,647 10,938 22,752 752,337 692,110 10,938 6,847 709,895

Opening accumulated amortisation - -2,500 -1,356 -3,856 - -625 756 131

Acquisitions of subsidiaries - - -2,534 -2,534 - - - -

Amortisation for the year - -1,875 -2,031 -3,906 - -1,875 -1,356 -3,231

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

CLOSING ACCUMULATED AMORTISATION - -4,375 -5,921 -10,296 - -2,500 -1,356 -3,856

NET BOOK VALUE 718,647 6,563 16,831 742,041 692,110 8,438 5,491 706,039

The greater part of goodwill is attributable to EuroMaint Rail AB and a smaller part to EuroMaint Industry AB. All intangible assets are acquired. For information with respect to amortisation, see Note 1. Goodwill with an indefinite useful life is attributed to separate subsidiaries during the write-down test, as these constitute cash-generating units.

SEK (000s) Buildings and land Buildings and land Improvements to property Improvementsto property Plant and machinery Plant and machinery Equipment, tools and fittings

Equipment, tools and fittings

Construction in progress Construction in progress Total Total

The Group 01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2008

01-01-200831-12-2008

Opening acquisition cost 13,540 13,540 30,418 29,010 142,515 127,438 209,588 203,127 69,354 46,805 465,415 419,922

Acquisitions of subsidiaries - - - - - - - - - - - -

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

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

Purchasing - - 10,098 1,076 22,062 15,589 27,167 2,491 -34,952 21,666 24,375 40,822

Finance leases - - - - - - 11,359 7,333 - - 11,359 7,333

Sales/disposals - - -16 - -1,275 -953 -317 -3,680 - - -1,608 -4,633

Currency adjustment - - -194 332 -333 441 -195 317 -202 883 -924 1,973

CLOSING ACCUMULATED ACQUISITION COST 13,540 13,540 40,306 30,418 162,969 142,515 247,602 209,588 34,200 69,354 498,617 465,415

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



Depreciation for the period -249 -248 -4,331 -3,398 -10,150 -8,205 -16,098 -14,962 - - -30,828 -26,813

Finance leases – depreciation - - - - - - -9,564 -10,773 - - -9,564 -10,773

Sales/disposals - - 16 - 895 730 239 3,634 - - 1,150 4,364

Currency adjustment - - 35 -41 43 -37 53 -83 - - 131 -161

Closing accumulated depreciation -5,862 -5,613 -18,581 -14,301 -112,496 -103,284 -159,534 -134,164 - - -296,473 -257,362

CLOSING RESIDUAL VALUE ACCORDING TO PLAN 7,678 7,927 21,725 16,117 50,473 39,231 88,068 75,424 34,200 69,354 202,144 208,053

The buildings and land part includes: 2009 2008

Investment property with the following values:

Assessment value 255* 255*

Book value 7,080 7,080

Communications real estate with the following values:

Assessment value

Book value 598 847

*Including a building value of SEK 0 and land value of SEK 255,000.Closing lease liability includes guaranteed residual values. For future minimum lease payments, see Note 20.

53

NOTE 6 TANGIBLE FIXED A SSE TS (cont . )

SEK (000s) Buildings and land Buildings and land Improvements to property Improvementsto property Plant and machinery Plant and machinery Equipment, tools and fittings

Equipment, tools and fittings

Construction in progress Construction in progress Total Total

The Group 01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2008

01-01-200831-12-2008

Opening acquisition cost 13,540 13,540 30,418 29,010 142,515 127,438 209,588 203,127 69,354 46,805 465,415 419,922


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


Purchasing - - 10,098 1,076 22,062 15,589 27,167 2,491 -34,952 21,666 24,375 40,822

Finance leases - - - - - - 11,359 7,333 - - 11,359 7,333

Sales/disposals - - -16 - -1,275 -953 -317 -3,680 - - -1,608 -4,633

Currency adjustment - - -194 332 -333 441 -195 317 -202 883 -924 1,973

CLOSING ACCUMULATED ACQUISITION COST 13,540 13,540 40,306 30,418 162,969 142,515 247,602 209,588 34,200 69,354 498,617 465,415

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



Depreciation for the period -249 -248 -4,331 -3,398 -10,150 -8,205 -16,098 -14,962 - - -30,828 -26,813

Finance leases – depreciation - - - - - - -9,564 -10,773 - - -9,564 -10,773

Sales/disposals - - 16 - 895 730 239 3,634 - - 1,150 4,364

Currency adjustment - - 35 -41 43 -37 53 -83 - - 131 -161

Closing accumulated depreciation -5,862 -5,613 -18,581 -14,301 -112,496 -103,284 -159,534 -134,164 - - -296,473 -257,362

CLOSING RESIDUAL VALUE ACCORDING TO PLAN 7,678 7,927 21,725 16,117 50,473 39,231 88,068 75,424 34,200 69,354 202,144 208,053

The buildings and land part includes: 2009 2008

Investment property with the following values:

Assessment value 255* 255*

Book value 7,080 7,080

Communications real estate with the following values:

Assessment value

Book value 598 847

*Including a building value of SEK 0 and land value of SEK 255,000.Closing lease liability includes guaranteed residual values. For future minimum lease payments, see Note 20.

The calculated recoverable amount for subsidiaries consists of either the value in use or fair value less selling expenses.

Value in useThe value in use is calculated as the Group share of the present value of future calcu-lated cash flows generated by ownership until the planned exit time and the assessed liquidity at final disposal. The assessment of future cash flows is based on reasonable and verifiable assump-tions that constitute the Group’s best estimates of the financial conditions estimated to be in force until the exit time, at which point huge emphasis is placed on external fac-tors. The assessment of future cash flows is based on the latest budgets/forecasts pre-pared. These cover the period to the exit time, a maximum of five years. If the exit time would, in a specific case, be longer than five years, assessments of future cash flows are based on an assumption of an unchanged or decreasing rate of growth, unless an increasing rate of growth can be justified. 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 payments in or out from financing activities. On the other hand, tax payments in and out 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 comparable with the carrying amount, the Group includes payments in and out in the estimated future cash flows instead of reducing the group value by tax liabilities and receivables. The Group 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 discount rate, the company’s weighted average capital cost, its marginal borrowing rate and other market borrowing rates independent of the Group’s capital structure are used.

Fair value with deductions for selling expensesThe best expression of fair value with deductions for selling expenses is the price available in a binding agreement between independent parties. In the absence of this, the market price can be used, on the condition the asset is sold on an active market. The immediately preceding transaction can provide a basis from which the value can be determined if there are no relevant purchase prices. If this is also unavailable, fair value with deductions for selling expenses consists of the price that it is estimated can be achieved from the sale of the asset between parties that are independent of one another, are well-informed and have an interest in the transaction. Once the sum is determined, the results from the sale of similar assets are taken into account, including earnings multiples, recently achieved within the same industry. The calculated value cannot be based on a forced sale.

NOTE 7 INTANGIBLE FIXED A SSE TS (cont . )

54

Notes

INCOME AND EXPENSES BY FINANCIAL CATEGORY

SEK (000s)

THE GROUP 2009 Financial assets/liabilities valued at fair value via the income statement

– Held for trading

Financial assets valued as per the

fair value option

Loans receivable and accounts receivable

Liabilities valued at amortised cost

Derivatives used for hedging purposes

INCOME BY CATEGORY

Interest income - - 897 - -

Other financial income - - 338 - -

TOTAL - - 1,235 - -

EXPENSES BY CATEGORY

Interest expenses - - - -83,746 -

Net exchange rate changes - - -1,005 - -

TOTAL - - -1,005 -83,746 -

Accounts receivable - - -105 - -

Change in value synthetic options -4,174 - - - -

TOTAL -4,174 - -105 -83,746 -

THE GROUP 2008 Financial assets/liabilities valued at fair value via the income statement


Financial assets valued as per the

fair value option




INCOME BY CATEGORY

Interest income -715 - 3,039 - 250


TOTAL -715 - 3,441 - 250

EXPENSES BY CATEGORY

Interest expenses 951 - - -87,142 1,371

Net exchange rate changes - - -2,267 - -

TOTAL 951 - -2,267 -87,142 1,371

Write-down of financial assets - - - - -

Accounts receivable - - -1,431 - -

TOTAL - - -1,431 - -

NOTE 8 FINANCIAL INCOME AND E XPENSES


Interest income 01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

Investments held until due

Accounts and loans receivable 897 2,574 1 329

Other financial income

Accounts and loans receivable 338 402 0 48

1,235 2,976 1 377

Interest expenses

Other liabilities -82,746 -84,820 -61,257 -65,672

Net loss

Synthetic options -4,174 - -4,174 -

Other financial expenses

Other liabilities -1,000 - -1,000 -

Net exchange rate changes -1,005 -2,267 - -

-88,925 -87,087 -66,431 -65,672

Write-down of financial instruments

Accounts and loans receivable -105 -1,431 - -

55

SEK (000s) Financial assets valued as per the

fair value option


parent company 2009

INCOME BY CATEGORY

Interest income - - 1 - -

Other financial income - - - - -

TOTAL - - 1 - -

expenses by CATEGORY

Interest expenses - - -62,257 -

Valuation of synthetic options -4,174 - - - -

TOTAL -4,174 - - -62,257 -

parent company 2008

Financial assets/liabilities valued at fair value via the income statement




INCOME BY CATEGORY

Interest income - - 79 - 250


TOTAL - - 127 - 250

expenses BY CATEGORY

Interest expenses - - - -67,043 1,371

Net exchange rate changes - - - - -

TOTAL - - - -67,043 1,371

NOTE 8 FINANCIAL INCOME AND E XPENSES (cont . )

56

Notes

NOTE 9 TA X


Total reported tax 01-01-200931-12-2009

01-01-200831-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

Current tax -10,626 -4,349 18,884 22,336

Deferred tax -2,403 -6,630 -1,871 -4,047

TOTAL -13,029 -10,979 17,013 18,289

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

Difference in estimated tax at current tax rate

Reported profit before tax 40,697 33,404 -68,853 -65,764

Tax according to current tax rate, 26.3 % (28 %) -10,703 -9,353 18,108 18,414

Effects of non-taxable income and non-deductible expenses

Non-deductible expenses -2,367 -1,041 -1,095 -5

Non-taxable income 260 2,912 - 1

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

Deficit in subsidiaries - 623 - -

Effect of changed tax rate - -120 - -121

Difference between Swedish and foreign tax -219 -74 - -

TOTAL -13,029 -10,979 17,013 18,289

The Group’s effective tax for 2009 amounts to 32.0 % (32.9 %) of taxable profit. The Parent Company’s effective tax for 2009 amounts to -24.7 % (-27.8 %) of taxable profit.

Deferred tax assets and liabilities are attributable to the following:Change to deferred tax assets and deferred tax liabilities attributable to hedging instruments has been reported in Other comprehensive income; other changes have been reported in the income statement.


Deferred tax assets 31-12-2009 31-12-2008 31-12-2009 31-12-2008

Provisions for pension obligations 1,568 1,992 - -

Deferred tax attributable to deficits 1,525 3,510 - 1,871

Hedging instruments (under Other comprehensive income) 6,677 4,762 3,375 4,639

Other provisions - 236 - -

Other - - - -

PROVISIONS AT YEAR END 9,770 10,500 3,375 6,510

Deferred tax liabilities

Provisions for pension obligations 3,576 4,162 - -

Hedging instruments (under Other comprehensive income) - 3,089 - -

Deferred tax in untaxed reserves 3,282 5,540 - -

PROVISIONS AT YEAR END 6,858 12,791 - -

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

Change in deferred tax assets

Opening value 10,500 11,477 6,510 5,918

Deferred tax attributable to deficits -1,985 -2,409 -1,871 -4,047

Deferred tax attributable to other provisions -236 -1,405 - -

Valuation of hedging instruments 1,916 4,763 -1,264 4,639

Provisions for pension obligations -424 -1,926 - -

CLOSING VALUE 9,771 10,500 3,375 6,510

57

NOTE 10 PARTICIPATIONS IN GROUP COMPANIES

NOTE 11 PENSIONS AND SIMIL AR OBLIGATIONS

Company’s name Corp. ID no. Registered office No. of participations Capital and votes % Book value 31-12-2009 Book value 31-12-2008

EuroMaint AB 556084-8458 Stockholm 1,000 100 935,200 935,200

EuroMaint Rail AB 556032-2918 Stockholm 190,000 100

EuroMaint Bemanning AB 556670-3095 Stockholm 1,000 100

EuroMaint GmbH HRB 103498 B Berlin 1 100

EuroMaint SIA 40003885784 Riga 15,000 100

EuroMaint Tracksupport AB 556673-4363 Stockholm 1,000 100

EuroMaint Industry AB 556232-0134 Skövde 100,000 100

EuroMaint Industry Inc. 42-1733397 Delaware 1,000 100

Energi och industriservice AB 556670-3368 Vänersborg 1,000 100

In accordance with IAS 19, Employee Benefits, actuaries on behalf of EuroMaint have calculated the Group’s pension liability and the amounts that should currently be set aside for pensions for the Group’s employees. Pension plans at EuroMaint include both defined benefit and defined contribution plans.

Defined contribution pension obligations Defined contribution pension promises comprise the so-called Option ITP, individual pension promises made to senior executives, and PA-03. On 25 April 2006, the Confederation of Swedish Enterprise and PTK agreed changes to the ITP plan. The new ITP agreement (ITP1) came into force on 1 July 2007 and is a defined contribution pen-sion plan. Those covered by ITP1 are those born in 1979 or later.

Defined benefit pension obligations ITP pensionThe old ITP plan (ITP2), applicable up to and including 30 June 2007, is a defined ben-efit pension plan that includes retirement, family and disability pensions. Employees covered by ITP2 may either be insured by Alecta (ITP2) or by Skandia (ITP-S) and were born in 1978 or earlier. Certain obligations for retirement pensions and family pen-sions for salaried employees in Sweden are secured through insurance with Alecta. According to a statement from the Swedish Financial Reporting Board, UFR 3, this is a defined benefit plan that includes several employers. For the period 1 January 2009 to 31 December 2009, the company has not had access to such information that makes it possible to report this plan as a defined benefit plan. The pension plan according to ITP2, which is secured by insurance with Alecta, is therefore reported as a defined contribution plan. Alecta’s surplus can be distributed to policyholders and/or those insured. At the end

of the third quarter of 2009, Alecta’s surplus in the form of level 1 collective consolida-tion amounted to 136.0 % (112.0 %). The collective consolidation level comprises the market value of Alecta’s assets as a percentage of the insurance obligations calculated in accordance with Alecta’s technical insurance calculation basis, which does not com-ply with IAS 19.

Pension according to the transitional provisions as well as professional and occupa-tional disability annuities. Employees previously covered by the state pension plan PA-91, formerly employed by the SJ Group, have the possibility of early retirement under the transitional provisions. The pension is paid from 60 years at the earliest and the pension level depends on sal-ary and length of service. Professional and occupational disability annuities are paid continuously until the employee dies. EuroMaint is responsible for the costs for this annuity from the end of the year 2000/01. Prior to this, the obligation lies with Swedish State Railways.

KPA pensionDefined benefit pensions and annuities under state pension rules for former employ-ees earned prior to 1992 have been redeemed in the life insurance company KPA. Premiums for this of SEK 125 million were paid in 1999. The National Government Employee Pensions Board is responsible for the calculation of benefits and administers the payment of pensions, whereby funds are continuously taken out of the insurance. The policy agrees to settle the difference in cost if pensions paid deviate from the ben-efit amount which provided the basis for the redemption premium in 1999. Such a cost adjustment is normally handled by crediting funds from the surplus available to the Group through KPA.

NOTE 9 TA X (cont . )


01-01-200931-12-2009

01-01-2008 31-12-2008

01-01-200931-12-2009

01-01-200831-12-2008

Change in deferred tax liability

Opening value 12,791 5,110 - -

Provisions for pension obligations -586 4,162 - -

Valuation of hedging instruments -3,089 3,089 - -

Change in deferred tax in untaxed reserves -2,258 430 - -

CLOSING VALUE 6,858 12,791 - -

Tax items reported directly in OTHER COMPREHENSIVE INCOME 2009 2008 2009 2008

Deferred tax attributable to hedging reserves 5,128 1,664 1,264 4,639

Tax items reported directly against equity

Current tax attributable to Group contributions 12,019 - -18,884 -22,336

TOTAL 17,147 1,664 -17,620 -17,697

58

Notes

NOTE 11 PENSIONS AND SIMIL AR OBLIGATIONS (cont . )

SEK (000s)

THE GROUP

The following defined benefit plans are reported in the balance sheet:

Pension liability/asset (+/-) in the balance sheet

Plan 31-12-2009 31-12-2008

Funded pension obligation -7,401 -6,455

Unfunded pension obligation 15,264 16,152

Professional and occupational disability annuities, unfunded 7,513 9,336

TOTAL 15,376 19,033

SEK (000s)

THE GROUP

Specification of the booked net debt in the balance sheet 31-12-2009 31-12-2008

Net debt at beginning of year -19,033 -35,164

Retained actuarial gains/losses on acquisition - -

Net cost of defined benefit pension -5,562 -1,126

Reported in the balance sheet as an increasein pen-sion liability - -

Remuneration paid -4 21,435

Premiums - 10,240

Compensation 9,223 -14,418

NET DEBT AT THE YEAR END -15,376 -19,033

SEK (000s)

THE GROUP

Actuarial gains and losses 01-01-200931-12-2009

01-01-200831-12-2008

Actuarial loss at the start of the year -76,838 -78

Amortisation of actuarial loss 990 4,600

Actuarial loss on the present value of obligations that arose during the year -5,221 -36,733

Actuarial loss from change in assumptions 279,664 -38,109

Actuarial gains/losses on plan assets that arose during the year (+/-) -205,815 -6,518

ACTUARIAL LOSS AT THE YEAR END WHICH IS INCLUDED IN THE PENSION LIABILITY -7,220 -76,838

SEK (000s)

THE GROUP

Provisions for pensions and similar obligations in the balance sheet

31-12-2009 31-12-2008

Present value of funded obligations 81,094 333,631

Fair value of plan assets -68,080 -281,349

Receivable/liability (-/+) 13,014 52,282

Present value of unfunded obligations - 34,005

Retained actuarial gains/losses (+/-) -7,220 -76,838

Write-down of assets under IAS 19 point 58b 9,582 9,584

ALLOCATED IN THE BALANCE SHEET FOR PENSIONS AND SIMILAR OBLIGATIONS 15,376 19,033

SEK (000s)

THE GROUP

Reported pension cost in the income statement 01-01-200931-12-2009

01-09-200831-12-2008

Cost of earned benefits -145 -5,323

Interest expense -2,865 -12,252

Expected return on plan assets 1,770 9,844

Change in the write-down of

pension assets (IAS 19 point 58b) -1,940 4,957

Amortisation of actuarial profit/loss (+/-) -990 -4,600

Change in payroll tax on change in pension liability - 6,248

COST OF DEFINED BENEFIT PENSIONS -5,562 -1,126

Cost of defined contribution pensions -67,305 -50,938

COST REPORTED IN THE INCOME STATEMENT -72,867 -52,064

SEK (000s)

THE GROUP

Reconciliation of changes in plan assets 01-01-200931-12-2009

01-09-200831-12-2008

Fair value of plan assets at the start of the year 281,349 282,202

Expected return during the year 1,770 9,844

Premiums paid - 10,240

Remuneration paid -9,223 -14,419

Actuarial gain during the year -205,815 -6,518

PLAN ASSETS’ FAIR VALUE AT THE YEAR END 68,080 281,349

Plan assets are invested in pension schemes at KPA. Insurance policies contain a mix-ture of shares and bonds. As of 31-12-2009, 60 % (41 %) were in bonds, 40 % (45 %) in shares and 0 % (10 %) in property. The total return during the year amounted, on average, to 12.4 % compared with 2008, when the return was 6.3 %. For the financial year 2010, the company estimates that the costs of defined benefit and defined contri-bution pensions will be slightly higher than in 2009.

SEK (000s)

THE GROUP

Calculation assumptions 31-12-2009 31-12-2008

Discount rate 3.50 % 4.30 %

Expected return on plan assets 2.50 % 4.00 %

Expected salary increase 3.00 % 3.00 %

Increase in outgoing pensions 2.00 % 2.00 %

Employee turnover 3.40 % 3.40 %

Increase in income base amounts 3.00 % 2.00 %

Expected average remaining service for employees 14 years 14 years

The discount rate is based on government bonds with the same term as the Group’s pension obligations. The expected return on plan assets is based on the portfolio allo-cation which the insurance companies report. Long-term inflation measures are based on market expectations, which can be seen between real and nominal bonds.

59

NOTE 12 S TO CK

NOTE 14 INTERES T- BE ARING LIABILITIES

SEK (000s)

THE GROUP 31-12-2009 31-12-2008

Gross stock 357,392 360,650

Obsolescence reserve -58,593 -96,297

Work in progress 76,162 -

Net stock 374,961 264,358

Distributed as below

Replacement parts 80,404 67,990

Spare parts 170,415 151,692

Work in progress 76,162 -

Other 47,980 44,671

TOTAL 374,961 264,353

Work in progress has been reported in previous years as completed, not invoiced. See Note 25.

SEK (000s) The Group31-12-2009 The Group31-12-2008 The Parent Company 31-12-2009

The Parent Company 31-12-2008

Accounts receivable 364,543 309,903 523 -1,084

Receivables from Group companies 33,681 - 272,077 80,446

Tax assets 39,108 28,400 - -

Other receivables 81,213 75,219 - -

Completed, not invoiced 156,781 193,458 - -

Prepaid expenses and accrued income 100,827 68,117 - -

TOTAL 776,153 675,097 272,600 79,362

Specification of prepaid expenses and accrued income

Prepaid rent 25,002 25,035 - -

Accrued income, maintenance measures 15,463 33,444 - -

Other 60,362 9,638 - -

TOTAL 100,827 68,117 - -

Fair value of liabilities with floating interest rates is equivalent to roughly the same as the carrying amount. The reported amounts and fair value of the Group’s borrowings are as follows:

SEK (000s)

THE GROUP Book value Fair value Book value Fair value

Long-term 31-12-2009 31-12-2009 31-12-2008 31-12-2008

Bank loans 640,000 640,000 730,000 730,000

Shareholder borrowings 273,813 273,813 244,122 244,112

Finance lease liability 16,516 16,516 27,296 27,296

Other* -8,960 -8,960 -10,800 -10,800

TOTAL 921,369 921,369 990,528 990,528

*Other relates to bank charges for the borrowed loan. These are amortised over the term and are reversed during the term of the loan.

Short-term

Bank loans 45,000 45,000 - -

Finance lease liability 14,345 14,345 - -

Bank overdraft facility 49,597 49,597 - -

TOTAL 108,942 108,942 - -

Dedicated bank overdraft facility 165,000 - 160,000 -

NOTE 13 ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES

60

Notes

NOTE 14 INTERES T- BE ARING LIABILITIES (cont . )

NOTE 15 OTHER PROVISIONS

NOTE 16 ACCOUNTS PAYABLE AND OTHER LIABILITIES

The total loan facility with Swedbank includes SEK 960,000 (960,000), and other institutions SEK 0 (0). SEK 200,000 of the framework refers to a so-called revolving facility to cover the bank overdraft and warranty commitments. Of this, SEK 165,000 is dedicated to the overdraft facility (SEK and foreign currency) and SEK 21,494 (8,335) is utilised for issued bank guarantees.Interest on the shareholder borrowings amounts to 12 % 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. To achieve the effect of a larger proportion of fixed interest rates, agreements regarding interest rate swap contracts have been entered into with Swedbank Finans. Swap contracts of SEK 380,000, which were entered into on 27 December 2007 and run until 31 December 2010, provide an equivalent fixed base rate of 4.6125 %. As of 31 December 2009, the swap contract amounts to SEK 342,500. During 2010, a further SEK 22.5 million will be redeemed.

The average term in months for outstanding external bank loans is therefore: 7.5

Weighted average interest rates including interest margins were on the balance sheet date: 4.38 %

The Group The Group

Interest rate duration 31-12-2009 31-12-2008

1 year or less 685,000 365,000

1-5 years - 365,000

TOTAL 685,000 730,000

For maturity of bank loans and shareholder borrowings, see Note 21.For finance lease contracts, see Note 19.

SEK (000s)

THE GROUP

Provision warranties 31-12-2009 31-12-2008

Provisions at beginning of year 18,840 16,276

Provisions for the year 9,686 14,764

Utilisation during the year -3,435 -200

Reversal of provisions -10,383 -12,000

PROVISIONS AT YEAR END 14,708 18,840

These provisions relate to warranty commitments for completed work.Discounting of the warranties has not taken place where outflow is expected within two years. Provision for warranties starts to be calculated when a service is completed or the goods have been released to the customer. In order to estimate the amounts, historical data on repairs and replacement is mostly used. Provisions for restructuring are 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.


31-12-2009 31-12-2008 31-12-2009 31-12-2008

Advance payment from customers 32,648 71,770 - -

Accounts payable 310,411 235,877 673 -

Liabilities to Group companies 45,726 21 140,492 22,445

Accrued expenses and deferred income* 261,576 288,949 2,924 475

Other liabilities 122,652 30,152 1,200 1,061

TOTAL 773,013 626,769 145,289 23,981

*Specification of accrued expenses and deferred income

Personnel costs 135,712 106,682 2,924 299

Product liabilities 32,168 34,840 - -

Accrued costs, maintenance measures 69,583 84,395 - 176

Other 24,112 63,032 - -

TOTAL 261,576 288,949 2,924 475

61

NOTE 17 PLEDGED A SSE TS AND CONTINGENT LIABILITIES

NOTE 20 C A SH FLOW S TATEMENT, OTHER ITEMS NOT AFFEC TING LIQUIDIT Y

NOTE 18 OPER ATING LE A SES NOTE 19 FINANCE LE A SES


Pledged assets 31-12-2009 31-12-2008 31-12-2009 31-12-2008

Pledged shares in subsidiaries (net assets)* 290,900 93,287 290,900 93,287

Pledged floating charges 25,190 25,190 - -

Contingent liabilities

Pension obligations, FPG/PRI 30 30 - -

Other guarantees 21,494 - - -

TOTAL 337,614 118,507 290,900 93,287

Floating charges and shares in subsidiaries (EuroMaint AB, EuroMaint Rail AB and EuroMaint Industry AB) are pledged to Swedbank as security for their total credit commitment. Pledged shares have been recorded at the value of net assets in the Group for the current subsidiaries.*In the reported amount for pledged shares, the consolidated goodwill of SEK 692 million has not been included.


Capital Gain/Capital loss 31-12-2009 31-12-2008 31-12-2009 31-12-2008

Change in personnel-related reserves -23,896 -19,900 2,515 -

Change in the pension provision -156 -16,131 - -

Change in other provisions and reserves -4,132 2,564 - -

Unpaid interest on shareholder borrowings 29,700 26,543 29,700 -

Other items -15,916 10,687 7,679 10,766

TOTAL -14,400 3,763 39,894 10,766

Operating activities include interest paid of -55,051 (-54,896) and interest received of 1,235 (855).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.

SEK (000s)

THE GROUP

Future minimum lease payments 31-12-2009 31-12-2008

Within 1 year 44 56

Between 1 and 5 years 11 51

More than 5 years - -

TOTAL 55 107

Written-off lease rentals 58 162

TOTAL 58 162

The rental of certain vehicles is reported under the Group’s operating leases.

SEK (000s)

THE GROUP

Future minimum lease payments 31-12-2009 31-12-2008

Within 1 year 14,345 9,528

Between 1 and 5 years 20,202 9,868

More than 5 years 608 991

TOTAL 35,155 20,399

Future minimum lease payments exclude guaranteed residual values, as these do not constitute a future payment. However, guaranteed residual values are included in the closing lease liability. The guaranteed residual values amount to SEK 8,753 (9,059).

Written-off lease rentals 11,358 11,409

TOTAL 11,358 11,409

No variable fees are included in net income. The hire of vehicles, computers and some office equipment is reported under the Group’s finance leases. For the majority of the finance lease contracts, at the end of the contract EuroMaint can either allocate a purchaser for the equipment for SEK 1,000, excluding VAT, return the equipment to the lessor or extend the contract (the new rental then becomes a quarterly rent per year as previously).

62

Notes

NOTE 20 C A SH FLOW S TATEMENT (cont . )

NOTE 21 FINANCIAL RISK S AND FINANCE P OLIC Y

Acquisitions of subsidiaries

Acquired assets and liabilities

Tangible fixed assets 877

Stock 4,506

Operating receivables 21,308

Cash and cash equivalents 7,539

Total assets 34,230

Provisions 952

Operating liabilities 24,078

Total provisions and liabilities 25,030

Net assets and liabilities 9,200

Goodwill 26,537

Purchase sum 35,737

Deducted. Cash and cash equivalents in the acquired subsidiary -7,539

Effect on cash and cash equivalents 28,198

In June, EuroMaint acquired EISAB Energi och Industriservice AB. The purchase sum totalled SEK 36 million. The acquired company is included in the Group’s turnover at SEK 67.3 million and in the income before tax at SEK 2.4 million. The company’s turno-ver and income before tax amount to SEK 93.4 million and SEK 2.9 million respectively, calculated from the start of the year.

Through its operations, EuroMaint is exposed to financial risks, including the effect of changes to prices on the loan and capital markets, exchange rates and interest rates. The Group’s overall risk management focuses on the unpredictability of the financial markets and strives to minimise potentially unfavourable effects on the Group’s finan-cial results. Finance operations in the Group are centralised in EuroMaint AB’s financ-ing function. The financing function acts as an internal bank and is responsible for the sourcing of capital, cash management and financial risk management. The operations are regulated through the Group’s Financial Regulations.

The following important financial risks are dealt with:

Market 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 that exchange rate fluctuations negatively affect the Group’s income statement, balance sheet and/or cash flows. Currency risk exists both in the form of transaction risk and translation risk. EuroMaint is to some extent exposed to currency risks and transaction risks because of relatively large volumes purchased in foreign currency and low customer invoicing in corresponding currencies. Purchases made in foreign currencies for major projects are hedged at 100 % or are covered by variable currency clauses during the tender stage/contract work. Financial regulations also specify that the current net flows should be hedged at least to the specified levels during a rolling 12-month forecast period, which usually takes place by means of currency futures. Hedging is done quarterly with levels of 40 % to 70 % for the coming quarters 1-4. The currencies EuroMaint is exposed to are EUR, NOK, USD, GBP, DKK, LVL and CHF. EuroMaint’s greatest cur-rency exposure comes from its product sales in NOK and product purchases in EUR. The net flow in NOK is around NOK 150 million per year, which means that a 5 % change in the exchange rate would create an effect on sales before hedging of SEK 9.3 million before tax.

The net flow is approximately EUR 19,800,000 (16,000,000) per year, which means that a 5 % change in the exchange rate will have an effect on purchase costs before hedging of approximately SEK 10.2 (8.7) million before tax Currency hedges are made against this net flow amounting to an annual average of 50 % of the amount. Exposure in NOK relates mainly to invoicing in connection with refurbishment deals and the fixed elements are hedged at 100 % using currency futures. Exposure relating to the transac-tion risk attributable to the other currencies is not significant. Currency risk in the form of translation risk is attributable to the currencies EUR, LVL and USD. The translation differences are judged as being small, however. A 5 % deterioration in NOK and EUR would involve a change in equity before hedging of around SEK 14.4 million.

Interest rate riskInterest rate risk refers to the risk of a negative effect on the Group’s profit due to changes in the market interest rates. EuroMaint is affected by the general rate adjustments through its external loan port-folio. To counter these, 50 % of the value of bank loans has been hedged with a 3-year interest rate swap . The underlying loans run for 3 months. Interest rate swaps provide a base rate of 4.6125 % during the 3-year period. With the current size of the loan portfolio and 50 % assurance level (interest swap), an increase in interest rates of 1 % increases the annual interest expense for EuroMaint by SEK 3.43 million before tax and means a change in equity after tax of SEK 2,524 million. The shareholder borrowings carry a fixed rate of 12 % until the loan is repaid.

Other risks

Credit riskCredit risk is the risk generated by the fact that the credit rating of the investor’s coun-terparty 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 2009 amounted to SEK 105,000 (1,232,000). At balance sheet date, EuroMaint had indirect col-lateral of approximately SEK 33 million (72) in the form of advances from customers. The Group considers that there are no significant concentrations of credit risk in respect of the financial assets.

Age analysis, due non-impaired accounts receivable Book valueNot due 289,315Due 0-60 days 43,876Due 61-180 days 12,476Due 181-365 days 10,219More than 1 year 8,657

TOTAL ACCOUNTS RECEIVABLE 364,543

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

Liquidity and refinancing riskRefinancing risk refers to the risk that the refinancing of mature loans is complicated or becomes costly and that EuroMaint therefore has difficulty fulfilling its payment obliga-tions. Liquidity risk refers to the risk of difficulties fulfilling 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 2009 there was a framework loan with Swedbank of SEK 960 million (960) including a bank overdraft facility with a framework of SEK 165 million (160). As of 31 December 2009, EuroMaint fulfilled all the requirements of the financial ratios related to the financing agreement.

63

NOTE 22 INFORMATION ON FAIR VALUE REL ATING TO FINANCIAL INS TRUMENTS

Fair values of all financial instruments are significantly consistent with book values, as all interest including interest on shareholder borrowings is deemed marketable.

Fair value under comprehensive income

The Group 2009

Level 1 Level 2 Level 3

Liabilities

Synthetic options - - 10,128

Derivatives - 25,832 -

Other - - -

Total - 25,832 10,128

Assets

Long-term investment, pensioncommitments, non-interest-bearing* - 5,465 -

Financial assets and liabilities valued at fair value under comprehensive income

Group 2009 liabilities

Opening balance Profit/loss under comprehensive

income

Acquisitions Concluded Closing balance

Synthetic options 8,452 4,623 - -2,947 10,128

Group 2008 liabilities

Synthetic options - - 8,452 - 8,452

The parent company 2009 liabilities

Synthetic options 8,452 4,623 - -2,947 10,128

The parent company 2008 liabilities

Synthetic options - - 8,452 - 8,452

NOTE 21 FINANCIAL RISK S AND FINANCE P OLIC Y (cont . )

Loan terms and due date structure/interest rate renegotiation

SEK

Liabilities to credit insti-tutions and shareholder borrowings

Nominal sum

Interest rate due date

Interest rate swap

1 year or less

Within 1-5 years

5 years or later

Bank loans 90,000 30-03-2010 45,000 - 90,000 -

210,000 30-03-2010 105,000 - - 210,000

250,000 30-03-2010 125,000 - - 250,000

135,000 30-03-2010 73,125 45,000 90,000 -

273,813 * - - - 273,813

TOTAL 958,813 348,125 45,000 180,000 733,813

* Until the loan is due, which is on request.

SEK (000s)

Fair value of derivative instruments as of the balance sheet date

31-12-2009 31-12-2008

Contracts with positive fair values:

Currency hedging (due date within 1 year) 2,333 11,302

Contracts with negative fair values:

Interest rate swap (due date 1-5 years) 4,806 17,638

Currency hedging (due date within 1 year) 15,334 2,027

The nominal amount of outstanding derivatives at 31 December 2009 is NOK 149,879,294 (sales) and EUR 6,300,000 (purchases)As of 1 January 2008, derivative instruments are classified as hedging instruments. As a result, the effective part of the changes in value is reported under Other comprehensive income.

Due dates on bank loans and shareholder borrowings: Book value

Within 1 year 45,000

1-5 years 180,000

5 years or later 733,813

TOTAL 958,813

For lease liability due dates, see Note 19.

* Is reported as net under provisions, pensions.

Level 1. “Fair value determined in accordance with prices noted on an active market for the same instrument.”Level 2. Fair value determined based on either direct (as price) or indirect (derived from price) observable market data not included in Level 1.Level 3. Fair value based on input data that is not observable on the market.

The Parent Company 2009

Level 1 Level 2 Level 3

Liabilities

Synthetic options - - 10,128

Derivatives - 12,832 -

Other - - -

Total - 12,832 10,128

64

NOTE 23 FINANCIAL INS TRUMENTS

SEK (000s), THE GROUP 2009

ASSETS BY CATEGORY Financial assets valuedat fair value via the income statement

Loans receivable and accounts receivable Derivatives used for hedging purposes

As of 31 December 2009

Assets in the balance sheet Held for trading Book value Book value

Accounts receivable - 364,543 -

Other receivables - 114,894 -

TOTAL - 479,437 -

FINANCIAL INSTRUMENTS, LIABILITIES BY CATEGORY

Financial liabilities valued at fair value via the income statement

Liabilities valued at amortised cost Derivatives used for hedging purposes


Liabilities in the balance sheet Held for trading Book value Book value

Long-term interest-bearing liabilities - 647,556 -

Shareholder borrowings - 273,813 -

Derivative instruments, long-term - - -

Synthetic options and shares 10,128 - -

Liabilities to Group companies - 45,726 -

Current interest-bearing liabilities - 108,942 -

Accounts payable - 310,411 -

Derivative instruments, current - - 25,832

TOTAL 10,128 1,386,448 25,832

SEK (000s), THE GROUP 2008


Loans receivable andaccounts receivable Derivatives usedfor hedging purposes



Accounts receivable - 309,903 -


Derivative instruments - - 11,302

TOTAL - 372,820 11,302








Liabilities to Group companies - 21 -

Accounts payable - 235,898 -

Derivative instruments, long-term - - 17,638

Derivative instruments, current 2,027 - -

Synthetic options and shares 8,452 -

TOTAL 10,479 1,226,447 17,638

NOTE 24 NE T TURNOVER


31-12-2009 31-12-2008 31-12-2009 31-12-2008

Sale of services 2,272,334 2,090,423 7,609 4,458

Sale of goods 237,356 225,523 - -

TOTAL 2,509,690 2,315,946 7,609 4,458

Notes

No assets or liabilities are valued at fair value through other comprehensive income.

65

NOTE 23 FINANCIAL INS TRUMENTS (cont . )

SEK (000s), THE PARENT COMPANY 2009


Loans receivable and accounts receivable Derivatives used for hedging purposes



Accounts receivable - 523 -


TOTAL - 272,600 -










Accounts payable - 673 -

Liabilities to Group companies, non-interest bearing - 94,792 -

TOTAL 10,128 369,278 12,832

SEK (000s), THE PARENT COMPANY 2008


Loans receivable andaccounts receivable Derivatives usedfor hedging purposes



Accounts receivable - -1,084 -


TOTAL - 79,362 -










Liabilities to Group companies, non-interest bearing - 22,445 -

TOTAL 8,452 805,677 17,638

NOTE 25 COMPLE TED, NOT INVOICED


Assets in the balance sheet 31-12-2009 31-12-2008 31-12-2009 31-12-2008

Accrued income 612,519 251,222 - -

Invoiced revenue - 455,738 -133,110 - -

Work in progress - 75,346 - -

TOTAL 156,781 193,458 - -

For contracts reported according to percentage of completion accounting method, the degree of completion is determined in relation to the accrued assignment charges compared to forecast assignment charges. Information about the total assignment revenue and costs incurred reported in the income statement during the period is not provided when these charges are assessed as being sensitive.

66

Stockholm, 3 March 2010

Wille Laurén Knut Hansen Henrik Joelsson Jonathan Wallis Chairman of the Board

Per Granström Bertil Hallén Karin Nyberg

Ole Kjörrefjord President and CEO

To the Annual General Meeting of EuroMaint Gruppen ABCorp. ID no. 556731-5402

We have reviewed the financial statements, the consolidated financial statements and the administration of the Board of Directors and CEO of EuroMaint Gruppen AB for the year 2009. The company’s financial state-ments are included in the printed version of this document on pages 36-66. These accounts and the administration of the company are the responsibility of the Board of Directors and the CEO. These individuals are also respon-sible for applying the Annual Accounts Act when preparing the financial statements, as well as International Financial Reporting Standards (IFRS) as adopted by the EU and the Annual Accounts Act when preparing the consoli-dated financial statements. Our responsibility is to express an opinion on the financial statements, the consolidated financial statements and the adminis-tration based on our audit. The audit has been conducted in accordance with generally accepted auditing standards in Sweden. This means that we planned and conducted the audit to obtain reasonable, but not absolute assurance that the financial statements and the consolidated financial statements are free from material errors. An audit includes the examination of a selection of the documentation regarding the amounts and other information in the accounts. An audit also includes assessing the accounting principles used and their application by the Board of Directors and the CEO, and evaluating the most critical estimates made by the Board and the CEO in preparing the financial statements and the consolidated financial statements, as well as assessing the overall information in the financial statements and consolidated financial accounts. As the basis for our pronouncement on discharge from liability, we have examined signifi-cant decisions, actions taken and circumstances at the Company in order to be able to determine the liability to the Company, if any, of any Board member or the CEO. We have also examined whether any member of the Board or the

CEO has otherwise acted in contravention of the Companies Act, the Annual Accounts Act or the Articles of Association. We believe that our audit provides a reasonable basis for our opinion. The financial statements have been prepared in accordance with the Swedish Annual Accounts Act and provide a true picture of the Company’s income and position in accordance with generally accepted accounting prac-tice in Sweden. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and the Swedish Annual Accounts Act, and provide a true picture of the Group’s income and position. The Directors’ report is consist-ent with other parts of the financial statements and the consolidated financial statements. We recommend that the Annual General Meeting adopt the income state-ments and balance sheets for the Group, and the statement of comprehensive income and the statement of financial position for the Group, appropriate the profit contained in the parent company in accordance with the proposals in the Director’s report and discharge the Board members and the CEO from liability for the financial year.

Stockholm, 3 March 2010KPMG AB

Fredrik SjölanderAuthorised Public Accountant

Auditors’ report

EuroMaint Rail AB SL Brodepån Rysstorpsvägen 12 SE-197 91 Bro

EuroMaint Rail AB Växlarevägen 29 SE-170 63 Solna

EuroMaint Rail AB Box 7011 SE-121 07 Stockholm Globen

EuroMaint Rail AB Södertäljedepån Svalängsvägen 2A SE-151 38 Södertälje

EuroMaint Rail AB Parkgatan 5 SE-852 29 Sundsvall

EuroMaint Rail AB Västra Järnvägsgatan 8 SE-911 34 Vännäs EuroMaint Rail AB Kölgatan 4 SE-724 65 Västerås

EuroMaint Rail AB Box 302 SE-662 27 Åmål

EuroMaint Rail AB Varuvägen 34 SE-125 30 Älvsjö



EuroMaint Industry Head office

EuroMaint Industry AB SE-541 87 Skövde

EuroMaint Industry AB Fabriksvägen 53 SE-817 30 Norrsundet

EuroMaint Industry AB Box 36 136 SE-400 13 Göteborg

EuroMaint Industry AB Drottninggatan 2 SE-561 82 Huskvarna

EuroMaint Industry AB Nygatan 78 SE-462 32 Vänersborg

EuroMaint Industry AB Box 302 SE-662 27 Åmål

GermanyEuroMaint Rail Karl-Marx-Straße 39 D-04509 Delitzsch

WRS Westdeutsche Rail Service, part of the EuroMaint Rail group Wintgensstraße 91 D-47058 Duisburg

EuroMaint Rail Pariser Straße 300 D-67663 Kaiserslautern

EuroMaint Rail Werkstättenstraße 4 D-04319 Leipzig

WLS Waggon- und Lokreparatur Service, part of the EuroMaint Rail group Baerler Straße 70 D-47441 Moers

EuroMaint Rail Sinninger Straße 11 D-86697 Oberhausen/Bayern

BelgiumWLS Belgium PgmbHAachener Str. 166 B-4701 Eupen-Kettenis

LatviaEuroMaint Rail SIA Rupniecibas iela 39 Jelgava, LV-3008 Latvia

SwedenEuroMaint Group office

EuroMaint AB Landsvägen 50 A SE-172 63 Sundbyberg

EuroMaint Rail Head office

EuroMaint Rail AB Box 1555 SE-171 29 Solna

EuroMaint Rail AB Bangårdsgatan 8 SE-781 71 Borlänge

EuroMaint Rail AB Lötängsgatan SE-803 01 Gävle

EuroMaint Rail AB Box 36 136 SE-411 04 Göteborg

EuroMaint Rail AB Lokvägen 2 SE-694 35 Hallsberg

EuroMaint Rail AB Fartygsgatan 40 SE-261 35 Landskrona

EuroMaint Rail AB Södra Oskarsgatan 2 SE-582 73 Linköping

EuroMaint Rail AB Box 1134 SE-973 53 Luleå

EuroMaint Rail AB Lokstallsvägen 2 SE-972 45 Luleå



EuroMaint Rail AB Verkstaden Blackvreten SE-195 95 Rosersberg

The NetherlandsRSB Rail Service Benelux b. v. Moezelweg 136 A NL 3198 LS Europoort Rotterdam

PolandLRS Polska sp. z o.o. ul. Sikorskiego 15 PL 55-200 Oława

USAEuroMaint Industry Inc. 50477 Pontiac Trail Wixom, MI 48393

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EuroMaint Annual Report

2009

www.euromaint.com

Euro

Mai

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2010

.03.

Eng

EuroMaint Annual Report 2009

euromaint annual report 2009euromaint annual report 2009 euromaint rail ab sl brodepån...

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