RESULTS Q2 2015

Operating results declined compared with the second quarter of 2014, impacted by significantly lower sales volumes for Mobile Pipeline™ solutions. Results were also impacted by the continued weak demand for light-duty vehicles in Europe. These effects were somewhat mitigated by continued strong sales volumes in the heavy-duty truck market in North America and transit bus markets in North America and Europe which reached record levels for a consecutive quarter, despite continued low oil prices. In addition, extraordinary costs related to the bond buy-back and refinancing had a negative impact on other financial items for the quarter. The full impact of savings in interest cost, following the refinancing, will take effect in the following quarters.

The first half year of 2015 provided an operating income of NOK 815.5 (804.7) million and had an operating profit before depreciation (EBITDA) of NOK 90.2 (165.6) million. The operating profit (EBIT) was NOK 62.7 (129.9) million and profit before tax for continuing operations was NOK 41.6 (114.2) million.

Key developments:

• Soft Mobile Pipeline™ sales
• A consecutive record delivery performance in the quarter for Heavy-duty vehicles
• Good capacity utilization in the Low-Pressure Cylinders segment, but slightly down from second quarter 2014
• Continued positive overall impacts of USD currency developments compared to same period last year.

Other important events in the half-year reported previously:

• Executed early redemption of NOK 300 million bond
• Secured financing facilities in a "club-deal" which extended financing capacity from NOK 685 million to NOK 1 billion on an unsecured basis
• Dividend of NOK 0.62 per share was paid on 7th May 2015.