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1 June 2011

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• Second level • Third level

• Fourth level • Fifth level

Technology+ Innovation= Sustainability

David Woolley (CEO) & David Bessant (CFO)

Q1 2012 Interim Report 26 April 2012

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2 June 2011

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Agenda

2 26 April 2012

• Q1 2012 Highlights

DW

• Summary of financial results

DB

• Innovation

DW

• FY 2012 Outlook

DW

(3)

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3 June 2011

Q1 2012 Highlights

3 26 April 2012

• Concentric continues to grow year on year and faster than the

market

• Growth is achieved without compromising on working capital

and cost discipline. Improved margins and strong cash flow

• Strong Q1 2012 results as the demand from Q4 2011 was

largely sustained

• Emerging trend of US demand ahead of Europe continues in Q1

2012, reflected in average sales per working day

• Strong profitability and working capital management further

reduces net debt

• Robust financial position – debt/equity ratio <10%

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4 June 2011

(5)

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5 June 2011

Q1 2012 Results

5 26 April 2012 MSEK Jan-Mar 2012 2011 Change Net Sales 610 554 56

Sales growth, like for like 8% 53%

Gross income 167 144 23 Operating income / EBIT (1) ₈₈ ₆₆ ₂₂

Operating margin 14.4% 11.9%

Net financial expenses -8 -12 Net income 51 31 Capital employed 1,257 1,243

ROCE (1) _26.3% _16.5%

Net debt 57 248

Gearing (Debt/Equity) 6% 34%

Rolling 12mth EBIT multiple (1) _7.4 _n/a

EPS (1)_(SEK) _1.25 _0.83

(1) Earnings adjusted for MSEK 6 pension charges in Q1 2012 (MSEK 8 demerger costs in Q1 2011)

MSEK 2,423 Enterprise value based on 31-Mar-12 share price SEK 53.50

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6 June 2011

Sales & Operating margin

development

6 26 April 2012

Profitable growth trend continues:

• Sales growth ahead of market for 5th_{successive quarter}

• H2 2011 market growth rates restated upwards following revised production data received in Q1 2012 report • Strong drop through from

increased sales volumes • Realisation of benefits from

Concentric Business Excellence program and ongoing cost

management 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Sales & Operating income margins

(rolling 12 months)

Operating margin (Actual) Sales (Actual)

Market growth (Restated) Market growth (Reported) Sales (Constant currency)

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7 June 2011

Market Data for Q1 2012

7 26 April 2012

Q1-12 vs. Q1-11 FY-12 vs. FY-11

North Europe China/ North Europe China/

America India America India

Agricultural machinery - -3% -8% +4% +3% +12%

Construction equipment +8% -4% -3% +8% - +18%

Truck +3% -4% -21% +8% +2% -5%

Industrial applications +6% 1% -10% +4% +4% +9%

Source: Based on statistics from Power Systems & Research, Off-Highway Research and International Truck Association Q1 2012 update

31% Ind Apps 27% Trucks 17% Ag Mach 25% Con Equip 53% USA 14% Germany 9% UK 6% Sweden 18% Other FY-11 Sales by end-market FY-11 Sales by customer location

Applying our sales mix by end-market and customer location, the blended market growth rate for Q1-12 was 1% versus

an actual year on year growth of 8% in constant currencies.

The blended market growth rate forecast for the full year 2012 is currently 5%.

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8 June 2011

Regional Performance

Americas

8 26 April 2012 Q1-12 Q1-11 Change Amounts in MSEK

Net sales - total (including inter-regional sales) 345 293 52

Operating income 43 30 13 25% Drop-through %

Operating margin 12.4 10.1 2.3

Return on capital employed (1) 37.3 19.1 18.2 (1) The quarterly ROCE has been calculated on a rolling 12 month basis.

Continued sales growth year on year

• Sales growth, like for like, was 13% for Q1-12 vs. Q1-11, driven primarily by off-highway equipment

for construction and industrial applications

• Average sales per working day basis was MSEK 5.4

Improving operating margins

• Operating margins for the quarter were up to 12.4% with strong drop through from the increased

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9 June 2011

Regional Performance

Europe & RoW

9 26 April 2012

Q1-12 Q1-11 Change

Amounts in MSEK

Net sales - total (including inter-regional sales) 300 293 7

Operating income 39 33 6

%

Operating margin 13.1 11.2 1.9

Return on capital employed (1) 24.3 11.5 12.8 (1) The quarterly ROCE has been calculated on a rolling 12 month basis.

Sales levels continue to ‘soften’ slightly vs. H2-11

• In constant currencies, sales were up 2% in Q1-12 vs. Q1-11

• On a sales per working day basis, activity levels were down -3% in Q1-12 vs. Q4-11

Strong operating margins

• Adjusting for the pension charges recorded in Q1-12 in respect of previously unrecognised actuarial

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10 June 2011

10 26 April 2012

Robust financial position

Amounts in MSEK Q1-12 Q1-11 Balance Sheet Working Capital 45 -26 Capital Employed 1,257 1,243 Net Debt 57 248 Equity 965 722

Gearing (Debt/Equity) ratio 6% 34%

Cash Flow

EBITDA 105 76

CAPEX -9 -13

Cash in flow before financing 67 17

Comments

MSEK 57 of non-operating working capital with Haldex AB was settled in Q2 2011 as part of refinancing Available facilities of c. MSEK 360 Very low gearing

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11 June 2011

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12 June 2011

Best in class technologies. High reliability performance, focused on fuel

economy, emissions reduction

 Oil mist separators New contracts announced

 Variable Flow Oil pumps First production order announced

 Variable Flow Water pumps Development contracts in place

12 26 April 2012

Variable Flow Coolant Pump Alfdex

Oil mist separator Variable Flow Oil Pump

Technology

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13 June 2011

Our gear pumps and motors (and the power packs they are in) are well

established and respected around the world

 Latest developments include the Calma product

 Helps meet legislation for lower noise

 A “Quiet Revolution” 13 26 April 2012 Gear tooth profiles optimised to reduce noise

Technology

Hydraulic Products

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14 June 2011

• Second level • Third level • Fourth level • Fifth level 14 26 April 2012

Innovation by Design

• Technology is key to our success (PRODUCT and MANUFACTURING)

• BUT also need right business environment and approach

• We need

INNOVATION

in ALL of our processes

 Customer management

 Purchase/ Supply

 Manufacturing

 Quality

• We are developing a culture of continuous improvement

 Challenge everything we do to make it better

 Goals- Increased performance and customer satisfaction

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15 June 2011

Innovation in LEAN

manufacturing

15 26 April 2012 Technology + Innovation = Sustainability

Quality 50 PPM

5C / TPM

‘U’ Shaped Cells

1 piece flow Set-up Reduction

Kanban / VSM Training & Understanding OEE / DSA / Inventory Days Visual

Management Blitz _Kaizen

Tools to increase

 Speed of production

 Level of quality

 Employee skill and satisfaction

Application

 The right tool in the right place

 Balanced use to best effect

 People engagement

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16 June 2011

Innovation in LEAN

manufacturing

B

E

F

O

R

E

A

F

T

E

R

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17 June 2011

Innovation in LEAN

manufacturing

Quality 50 PPM

5C / TPM

‘U’ Shaped Cells

1 piece flow Set-up Reduction

Kanban / VSM Training & Understanding OEE / DSA / Inventory Days Visual

Management Blitz _Kaizen

TS16949 – ISO14001 – BS18001 Concentric Business Excellence EFQM / Baldrige

Lean and 6 Sigma Principles

Pe op le S ati sfa cti on QUALITY COST DELIVERY Waste Elimination Cu sto m er Sa ti sfa cti on 5C

Integrated into the business

 ”Joined up”  Global approach  Customer focussed  People focussed  Builds on foundations  Common language

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18 June 2011

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19 June 2011

Outlook

19 26 April 2011

• Orders received during Q1 2012 indicate that the Group’s underlying

sales activity will be sustained during the Q2 2012, with a continuing trend of stronger demand in North America compared to Europe.

• The blended market growth rate for FY 2012 based on the latest

available data is forecast to be 5%, applying our mix of sales by end-market and customer location. Our ambition remains to grow faster than the market.

• We firmly believe that our geographical spread and four distinct

end-market segments, together with the flexibility we have in our operations through our Business Excellence program, make Concentric very well positioned to tackle any challenges in 2012.

• We continue to see great opportunities for long-term growth by

providing value to our customers through our leading technology addressing the key drivers in our market niches, such as the forthcoming changes in emissions legislation and increased focus on reducing fuel consumption

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20 June 2011

Any Questions?

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21 June 2011

Appendices

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22 26 April 2012

 Concentric AB is organized regionally

 Two regions – Americas and Europe and ROW

 Manufacturing occurs in the UK, India, China, Sweden, Germany and the US

close to customers

 The company employs 1,202 people

 Focus on four end markets – Truck, Agricultural machinery, Construction

equipment and Industrial applications

 We make pumps for diesel engines, used for pumping lubricating oil, coolants and diesel fuel

 Concentric AB is the global market leader in engine pumps in the 0.8 - 2 litre

per cylinder niche

 Largest customers are engine manufacturers and large truck manufacturers

which produce diesel engines for their own trucks and construction machinery  We make gear pumps for a broad range of hydraulic pump applications

 Concentric AB is a market leader in niches such as fan drives and supplementary

power steering

 Largest customers are OEMs of a wide range of industrial vehicles, agricultural

machinery and construction equipment

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23 June 2011

• Second level • Third level • Fourth level • Fifth level Hof, Germany Manufacturing 175 Employees Skånes Fagerhult, Sweden Manufacturing 90 Employees

Rockford, Illinois USA

Manufacturing 350 Employees Suzhou, China Manufacturing 40 Employees Landskrona, Sweden

Manufacturing, JV with Alfa Laval

Itasca, Illinois Manufacturing & Distribution 100 Employees Birmingham, UK Headquarters

Manufacturing & Distribution

200 Employees

Pune, India

Manufacturing

200 Employees

Global Infrastructure

Footprint adjacent to our Customers

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24 June 2011

Engine Products

We offer best in class pumps for diesel engines focused on fuel economy and emissions reduction, with the major products including:

 Oil pumps, fixed and variable displacement, mechanical or electronic control  Water pumps, fixed and variable control with future stretch for electrification  Fuel transfer pumps, mechanical with electrification options

 Alfdex oil mist separators

Water Pumps Oil Pumps Fuel Pumps Variable Flow Pumps Oil Mist Separator

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25 June 2011

Hydraulic Products

Auxiliary Pumps

Axle Cooling _{Implement Pump} Accumulator Charging Cab Tilt and Ladder

Stow

Fan Drive

Transmission

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Blue Chip Customer Base

26 26 April 2012

 Top 10 customers account for 65% - reflects customer concentration for engines  Customer development can take up to 3 yrs but platform life cycle usually +10 yrs  Other customers account for 35% - reflects diverse base in hydraulic products (700+)

Other, 35% JLG, 2% Kion Group, 2% Nacco, 2% Navistar, 2% Deutz, 3% Daimler, 3% Volvo, 6% John Deere, 8% Cummins, 17% Caterpillar, 19%

Source: 2011 Group sales

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27 June 2011

Emissions Legislation

Europe/North America/Japan

27 26 April 2012

However large the engine, wherever it is made and wherever it is used, on or off highway, there will be tougher emissions

standards and increased focus on reducing fuel consumption.

This offers opportunities for our technology.

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28 June 2011

Emissions Legislation

Emerging Markets

28 26 April 2012 Source: ACEA