Prospectus for Listing of Shares 2011 IMPORTANT INFORMATION
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Prospectus for listing of shares 2011 IMPORTANT INFORMATION In this prospectus “Concentric” or the “Company” means, depend- FORWARD-LOOKING STATEMENTS AND MARKET DATA ing on the context, either Concentric AB (publ) or the group in which This prospectus contains certain forward-looking statements that re- Concentric AB (publ) is the parent company. “Concentric Group” or flect Concentric’s current views or expectations with respect to fu- the “Group” means Concentric AB (publ) and its subsidiaries. “Hal- ture events and financial and operational performance. The words “in- dex” means, depending on the context, either Haldex AB (publ) or tend”, “estimate”, “expect”, “may”, “plan”, “anticipate” or similar the group in which Haldex AB (publ) is the parent company. “Haldex expressions regarding indications or forecasts of future developments Group” means Haldex AB (publ) and its subsidiaries. or trends, which are not statements based on historical facts, consti- tute forward-looking information. Although Concentric believes that “Euroclear Sweden” refers to Euroclear Sweden AB. “NASDAQ OMX these statements are based on reasonable assumptions and expecta- Stockholm” refers to NASDAQ OMX Stockholm AB. “SEK” refers to tions, Concentric cannot give any assurances that such statements will Swedish kronor, “USD” refers to U.S. dollars, “EUR” refers to Euro and materialize. Because these forward-looking statements involve known “GBP” refers to British pounds. “m” refers to millions. and unknown risks and uncertainties, the outcome could differ materi- ally from those set out in the forward-looking statement. NOTICE TO INVESTORS This prospectus has been prepared by reason of the listing of the shares Factors that could cause Concentric’s actual operations, result or per- in Concentric on NASDAQ OMX Stockholm. The prospectus does not con- formance to differ from the forward-looking statements include, but tain and does not constitute an offer or invitation to acquire securities. are not limited to, those described in “Risk factors”. The forward-look- ing statements included in this prospectus apply only to the date of the The prospectus has been approved and registered by the Swedish Fi- prospectus. Concentric undertakes no obligation to publicly update or nancial Supervisory Authority (Finansinspektionen) (the “SFSA”) pur- revise any forward-looking statements, whether as a result of new in- suant to the provisions of Chapter 2, Sections 25 and 26 of the Swed- formation, future events or otherwise, other than as required by law. ish Financial Instruments Trading Act (lagen (1991:980) om handel med finansiella instrument) (the “Trading Act”). Approval and registration The prospectus contains market data and industry forecasts, includ- by the SFSA do not imply that the SFSA guarantees that the information ing information related to the sizes of the markets in which Concentric provided in this prospectus is correct and complete. participates. The information has been extracted from a number of sources. Although Concentric regards the sources as reliable, the in- This prospectus is governed by Swedish law. The courts of Sweden have formation contained in them has not been independently verified and exclusive jurisdiction to settle any dispute arising out of or in connec- therefore it cannot be guaranteed that this information is accurate tion with this prospectus. This prospectus has been prepared in Swed- and complete. However, as far as Concentric is aware and can assure ish and English language versions. In case of any inconsistency between by comparison with other information made public by these sources, the Swedish and the English versions of the prospectus, the Swedish no information has been omitted in such a way as to render the infor- version shall prevail. mation reproduced incorrect or misleading. In addition to the above, certain data in the prospectus is also derived from estimates made by The shares in Concentric are not subject to any application for trading Concentric. in any country other than Sweden. The shares in Concentric have not been, and will not be, registered under the United States Securities PRESENTATION OF FINANCIAL INFORMATION Act of 1933 (the “Securities Act”) or the securities laws of any state This prospectus contains Concentric’s audited combined financial state- or other jurisdiction outside Sweden . This prospectus may not be dis- ment for 2009 and 2010, the reviewed interim financial statement for tributed in any jurisdiction where such distribution would require any the period January − March 2011 and pro forma financial statements additional prospectus, registration or measures other than those re- for 2010 and January − March 2011, which all have been prepared in quired under Swedish law, or otherwise would conflict with regulations accordance with International Financial Reporting Standards (“IFRS”) in such jurisdiction. Persons into whose possession this prospectus may as enacted by the EU. Certain financial and other information present- come are required to inform themselves about, and comply with such ed in this prospectus has been rounded off for the purpose of making restrictions. Any failure to comply with such restrictions may result in this prospectus more easily accessible for the reader. As a result, the a violation of applicable securities regulations. figures in tables may not tally with the stated totals. The publication of this prospectus does not, under any circumstanc- With the exception of Concentric’s audited combined financial state- es, imply that the information herein is correct and current as at any ment for 2009 and 2010, the reviewed interim financial statement for date other than the date of this prospectus or that there have not been the period January − March 2011 and the pro forma financial statements any changes in Concentric’s business since the date of this prospectus. in this prospectus, no information in the prospectus has been audited If the information in this prospectus becomes subject to any material or reviewed by Concentric’s auditor. change, such material change will be made public in accordance with the provisions governing the publication of supplements to prospectus- es in the Trading Act. Table of Contents Summary 2 Risk factors 6 Background and reasons 11 Terms, conditions and instructions 12 CEO’s statement 13 Business mission, goals and strategies 14 Market overview 15 Business description 20 Condensed financial information and commentary on financial development 26 Pro forma financial information 34 Capitalization, indebtedness and other financial information 39 Interim report January 1−March 31, 2011 43 Board of Directors, senior management and auditor 61 Share capital and ownership structure 70 Articles of Association 72 Legal issues and supplementary information 73 The relationship between Concentric and Haldex 75 Certain tax considerations in Sweden 78 Historical financial statements 80 Glossary 108 Addresses 109 PRELIMINARY TIMETABLE Annual General Meeting in Haldex June 8, 2011 Intended last day for trading in the Haldex share including the right to distribution June 8, 2011 Intended first day for trading in the Haldex share excluding the right to distribution June 9, 2011 Intended Record date for the distribution of the shares in Concentric June 13, 2011 Expected first day of trading in the Concentric share June 16, 2011 1 SUMMARY Overview of the distribution and listing is 2–3 years, and a typical product life is 10 years. The OEM of Concentric customers are spread globally, and their products serve a Background and reasons range of end markets. Concentric’s solutions allow its cus- On July 16, 2010, Haldex announced its intention to re- tomers to achieve their goals on fuel economy, emissions re- organize the Hydraulic Systems division into a separate duction and noise control. group and to distribute the new parent company, Concen- At year end 2010 Concentric had a total of 1,156 employees tric, to the shareholders of Haldex, as well as to list the at its sites in China, Germany, India, United Kingdom, United Company on NASDAQ OMX Stockholm. The Boards of States and Sweden. Directors of Haldex and Concentric assess that Concentric has now achieved such size and profitability that the Com- Market pany will have better opportunities as a separate listed en- Pumps are used in a very wide variety of end markets, and tity, with its own independent access to capital and free- the basic concept of a pump has been adapted for use in many dom to implement its strategy. With a strong investment different applications. Within Concentric’s end markets, case, Concentric has the potential to become an attractive pump companies continue to refine the technology of their investment proposition for current and new investors. The products, producing more specialized pumps to increase per- Board of Directors of Haldex is therefore proposing that formance in specific applications. Traditional mechanical oil the shareholders of Haldex resolve at the Annual Gener- pumps and water pumps, are evolving into infinitely varia- al Meeting to be held on June 8, 2011, to distribute all the ble flow versions, via hydraulic or electronic control, there- shares in Concentric to the shareholders of Haldex through by offering power savings, improved engine fuel efficiency, a dividend distribution. Under the “Lex ASEA” rules, the more accurate temperature stabilization and overall reduced distribution of the shares in Concentric is tax-exempt in emissions and noise. Sweden