FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934

For the fiscal ~~Securities~~second ~~Exchange~~quarter ~~Act~~June of1, ~~1934~~2004 - August 31, 2004

~~For the fiscal fourth quarter December 1, 2003 - February 29, 2004~~and

Half-year March 1, 2004 - August 31, 2004

Concordia Bus AB (publ)

(Translation of registrant’s name into English)

Solna Strandvag 78, 17154 Solna, Sweden

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ý

Form 40-F o

Indicate by check mark whether the registrant files by furnishing the information contained in this Form is also thereby furnishing the Information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b); 82- .

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Concordia Bus AB (publ)
	(Registrant)
Date: April 28, 2004	By:	/s/ Vasant Mistry
		Vasant Mistry
		Chief Financial Officer

CONCORDIA BUS AB

STOCKHOLM, SWEDEN

~~FOURTH~~ SECOND QUARTER ~~AND~~JUNE ~~FULL~~1, ~~YEAR~~2004 ~~REPORT~~– AUGUST 31, 2004

~~MARCH 1, 2003 – FEBRUARY 29, 2004~~AND

HALF YEAR MARCH 1, 2004 – AUGUST 31, 2004

The matters discussed in this news release include forward-looking statements that are subject to risks and uncertainties including but not limited to economic conditions, product demand, competitive products and services, government regulation, financial resources, certain litigation and other risks indicated in filings with the US Securities and Exchange commission.

INDEX

Operational and Financial Review Management’s discussion and analysis of financial condition and results of operations Quantitative and qualitative disclosures about market risk Unaudited Consolidated financial statements – Concordia Bus AB (publ) and subsidiaries ~~Consolidated~~Unaudited consolidated interim statements of operations for the ~~fourth~~three ~~quarter~~months ended ~~February~~August 2931, 2004 and ~~February~~August 2831, 2003 ~~Consolidated~~Unaudited consolidated interim statements of operations for the half-year ended ~~February~~August 2931, 2004 and ~~February~~August 2831, 2003 ~~Consolidated~~Unaudited interim consolidated balance sheets as of ~~February~~August 2931, 2004 and February 2829, ~~2003~~2004 ~~Consolidated~~Unaudited consolidated interim cash flow statements for the half-year ended ~~February~~August 2931, 2004 and ~~for~~August ~~the year ended February 28~~31, 2003 Notes to unaudited consolidated interim financial statements

CONCORDIA BUS AB (PUBL)

~~FOURTH QUARTER AND FULL~~ HALF-YEAR REPORT

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

~~AND~~Concordia ~~RESULTS~~Bus OFAB ~~OPERATIONS~~(“Concordia” or the “Company”) hereby submits the unaudited interim financial statements for the three-month period ended August 31, 2004. The Company is a wholly owned subsidiary of Concordia Bus Holding AB (Reg. No. 556574-8240, domiciled in Stockholm), which is a part of the group of which Concordia Bus BV (Reg. No. 103040697, Dos No. 292558KvK, domiciled in Amsterdam, The Netherlands) is the ultimate parent company. All figures are expressed in millions of SEK if not otherwise indicated.

~~Concordia~~You ~~Bus~~should ABread ~~(“Concordia” or~~ the following ~~“Company”)~~discussion ~~hereby~~in ~~submits~~conjunction with the financial statements ~~for~~of ~~the~~Concordia included ~~year~~in ~~ended~~this ~~February~~quarterly ~~29,~~report ~~2004.~~starting ~~The~~on ~~Company~~page is10. ~~a wholly~~The ~~owned~~financial ~~subsidiary~~ statements of Concordia ~~Bus~~are ~~Holding~~prepared ABin ~~(Reg.~~accordance ~~No.~~with ~~556574-8240,~~accounting principles generally ~~domiciled~~accepted in ~~Stockholm~~Sweden (“Swedish GAAP”), which isdiffer ain ~~part~~various ofrespects ~~the~~from accounting ~~group~~principles ofgenerally ~~which~~accepted ~~Concordia~~in ~~Bus~~the BV United States (~~Reg~~“U.S. NoGAAP”). The ~~103040697,~~financial ~~Dos~~year-end Nofor Concordia is the last day of February. ~~292558KvK,~~Unless otherwise ~~domiciled~~specified in ~~Amsterdam~~this discussion, ~~The Netherlands)~~reference to a particular year is to the ~~ultimate~~financial ~~parent~~year ~~company.~~ended ~~All~~the ~~figures~~last ~~are~~day ~~expressed~~of inFebruary ~~millions~~of that year (“fiscal 2005” for the year ending February 28, 2005). The end of ~~SEK~~the iffirst ~~not~~financial ~~otherwise~~quarter for ~~indicated~~Concordia is May 31 of each year.

~~You~~The ~~should~~same ~~read~~accounting policies ~~the~~and ~~following~~methods ~~discussion~~of incomputation ~~conjunction~~are ~~with~~followed in the quarterly consolidated financial statements ofas ~~Concordia~~compared ~~included~~with inthe ~~this~~most ~~quarterly~~recent ~~report~~annual ~~starting on~~financial ~~page~~statements ~~10.~~except ~~The~~that ~~financial~~the ~~statements~~Company as of ~~Concordia~~March ~~are~~1, ~~prepared~~2004 inhas ~~accordance~~revised ~~with~~its accounting ~~principles~~principle ~~generally~~for ~~accepted~~pensions. inThis ~~Sweden~~revision ~~(“Swedish~~was ~~GAAP”), which differ~~ in ~~various~~accordance ~~respects~~with ~~from~~ new accounting ~~principles~~recommendations ~~generally~~under ~~accepted~~Swedish ~~in the United States (“U.S.~~ GAAP”). ~~The~~In ~~financial~~accordance ~~year-end~~with ~~for~~Swedish ~~Concordia is~~ GAAP, the ~~last day~~revision ofhas ~~February.~~been ~~Unless~~reflected ~~otherwise~~through ~~specified in this discussion, reference to~~ a ~~particular~~ ~~year~~restatement isof to the historical financial ~~year~~results. ~~ended~~For ~~the~~an ~~last~~explanation ~~day~~ of ~~February of that year (“fiscal 2004” for~~ the ~~year ended February 29~~impact, ~~2004).~~see ~~The~~“notes ~~end~~to ofunaudited consolidated ~~the~~interim ~~third~~ financial ~~quarter for Concordia is November 30 of each year~~statements”.

The same accounting policies and methods of computation are followed in the quarterly consolidated financial statements as compared with the most recent annual financial statements.

The discussion that follows compares our actual results for 2004 with our restated results for 2003.

Financial Highlights

The following table summarizes Concordia’s results of operations for the periods indicated in terms of amounts as well as a percentage of revenues:

FourthSecond quarter ended FebruaryAugust 2931, 2004 compared to the fourthsecond quarter ended FebruaryAugust 2831, 2003

	2004				2003 ~~Reported~~				~~2003 Restated~~
	SEK million		%		SEK million		%		~~SEK million~~		%
Revenues	1,~~203~~118		100.0	%	1,~~189~~103		100.0	%	~~1,189~~		~~100.0~~	%
Operating profit/(loss)	(129	)	(10.7	)%	(152	)	(12.8	)%	(139	)	(11.7	)%
Operating profit (loss)	(15	)	(1.4	)%	(12	)	(1.1	)%
EBITDAR(1)	62175		515.16	%	66172		515.6	%	79		~~6.6~~	%
EBITDAR before exceptional items (2)	116		9.6	%	123		10.3	%	113		9.5	%
Net loss	(99	)	(8.9	)%	(50	)	(4.5	)%
Net profit/(loss)	(272	)	(22.6	)%	(185	)	(15.6	)%	(172	)	(14.4	)%

YearHalf-year ended FebruaryAugust 2931, 2004 compared to Yearthe half-year ended FebruaryAugust 2831, 2003

	2004				2003 ~~Reported~~				~~2003 Restated~~
	SEK million		%		SEK million		%		~~SEK million~~		%
Revenues	42,~~762~~375		100.0	%	42,~~758~~355		100.0	%	~~4,758~~		~~100.0~~	%
Operating profit/(loss)	(155	)	(3.2	)%	(172	)	(3.6	)%	(172	)	(3.6	)%
Operating profit (loss)	(43	)	(1.8	)%	(22	)	(0.9	)%
EBITDAR(1)	~~596~~333		1214.50	%	~~582~~344		1214.26	%	~~582~~		~~12.2~~	%
EBITDAR before exceptional items (2)	650		13.6	%	696		14.6	%	696		14.6	%
Net loss	(168	)	(7.1	)%	(111	)	(4.7	)%
Net loss	(409	)	(8.6	)%	(344	)	(7.2	)%	(344	)	(7.2	)%

(1) EBITDAR is defined as net income before interest, taxes, depreciation, amortization and rent expense (primarily lease payments on buses and on sale lease back transactions, EBITDAR is not a measure of of financial performance under generally accepted accounting principles and ~~should~~ should not be considered as an alternative to United States GAAP or Swedish ~~GAAP~~ GAAP measures of Net loss or as an indicator of Concordia’s operating performance or cash flows from operations under United States GAAP or Swedish GAAP or as a measure of liquidity. It should be noted that EBITDAR is not a uniform or standardized measure and the calculation of EBITDAR may vary significantly from company to company and by itself provides no grounds for comparison of Concordia with other companies. EBITDAR has been derived from amounts found under “Consolidated statement of operations” on Page 10 and 11 of this quarterly report, prepared under Swedish GAAP.

~~itself~~Second ~~provides~~quarter noended ~~grounds~~August ~~for~~31, ~~comparison~~2004 ofcompared ~~Concordia~~to ~~with~~the ~~other~~second ~~companies.~~quarter ~~EBITDAR~~ended ~~has~~August ~~been derived from amounts found under “Consolidated statement of operations” on Page 10 and 11 of this quarterly report~~31, ~~prepared under Swedish GAAP.~~2003

~~(2) Exceptional~~The ~~items~~following ~~are~~section provides ~~those,~~an ~~which~~analysis between the ~~management believes,~~actual ~~are~~numbers ~~non-recurring~~presented ~~and~~for ~~have~~the aquarter ~~non-operational~~as compared ~~nature~~with ~~and~~the ~~are~~equivalent ~~necessary to~~period ~~explain~~in the ~~development~~preceding ofyear, ~~operating~~except ~~performance.~~for ~~These~~the section ~~may~~“Liquidity ~~not~~and ~~meet~~capital ~~Swedish~~resources” which provides analysis between the orrespective USyear ~~GAAP~~to ~~definitions~~date ofperiods, ~~exceptional~~which ~~and~~for ~~extraordinary~~the ~~items. See~~first ~~Note~~quarter 2are the same.

Fourth quarter ended February 29, 2004 compared to the Fourth quarter ended February 28, 2003

The following section provides an analysis between the actual numbers presented for the quarter as compared with the equivalent period in the preceding year. The discussion compares our results for 2004 with our restated results for 2003.

Revenues

Revenues principally comprise fees generated from bus services provided under the terms of contracts with local public transportation authorities in Sweden, Norway and Finland and from express bus services and coach hire services in Sweden. Revenues also include revenues received from maintenance and repair services that ~~Swebus~~ Concordia provides at its depots to third parties and sales of diesel fuel.

Revenues increased by SEK 1415 million, or 1.4 %, from SEK 1,~~189~~103 million for the three months ended ~~February~~August 2831, 2003 to SEK 1,~~203~~118 million for the quarter ended ~~February~~August 2931, 2004. Revenues from the provision of bus services for local public transportation authorities increased by SEK 12 million, or 0.5%, from SEK 1,068 million for the three months ended February 28, 2003 to SEK 1,080 million for the three months ended February 29, 2004.

~~The~~Revenues ~~SEK~~from 12the ~~million~~provision ~~increase~~of ~~was~~bus ~~derived~~services ~~largely~~for ~~from~~local ~~new contracts~~public ~~worth~~transportation authorities increased by SEK 5914 million, ~~and~~or a1.5%, ~~compensation~~from ~~due~~SEK to951 million ~~prior~~for ~~years~~the ofthree months ended August 31, 2003 to SEK 37965 million. for the ~~This~~three ~~was~~months ~~offset~~ended byAugust ~~lost~~31, ~~contracts~~2004. Our increase in revenue is principally due to our winning of ~~SEK~~new 83contracts, ~~million~~which ~~with~~provided ~~the~~an ~~remaining~~increase ~~decrease~~ of SEK 196 million which ~~resulting~~was ~~from~~offset aby ~~combination~~the ofimpact afrom ~~volume~~lost ~~decrease,~~contracts ~~price increase~~of ~~upon~~SEK ~~renewal~~74 ofmillion. ~~contracts~~In addition, ~~increase~~the net impact from the ~~indexation~~volume ~~adjustments~~ and ~~other~~price changes inon ~~existing~~the existing contracts was lower by SEK 8 million.

Revenues from express bus services increased by SEK 107 million, or 148%, from SEK 7190 million for the three months ended ~~February~~August 2831, 2003 to SEK 81 97 million for the three months ended August ~~February 29~~31, 2004. ~~The~~This ~~revenue~~ increase ~~derives~~ ~~primarily~~is ~~from~~largely ~~general~~due ~~price~~to ~~increase~~a ofhigher 4%yield ~~effective~~ from ~~July~~passenger tickets 1marginal of SEK 3 million, ~~2003~~ and increase in ~~passengers~~passenger ~~carried~~traffic of SEK 2 million and an increase of prices of SEK 2 million.

Revenues from coach hire services ~~declined~~increased by SEK 42 million or 126% from SEK 2531 million for the three months ended ~~February~~August 2831, 2003 to SEK 2133 million for the three months ended August ~~February 29~~31, 2004. ~~The~~This ~~revenue~~increase ~~decline~~ is adue ~~direct~~to increased revenues from sales of ~~reflection~~diesel of aSEK ~~lower~~1 ~~level~~million, and an increase of ~~business~~prices ~~activities~~of ~~and~~SEK ~~decreased~~1 ~~tourism~~million.

Other revenues amounted to SEK 2123 million for the ~~quarter~~three months ended ~~February~~ 29August 31, 2004 and SEK 2831 million for the three months ended ~~February~~August 2831, 2003. Other revenues largely consist of sales of diesel fuel and maintenance and repair services to third parties.

Gain on Sale of Fixed Assets

The net of gain and losses on our sale of fixed assets is comprised of sales of ~~buses~~real ~~and~~estate, buses and other assets held by Concordia. ~~Gain~~Loss on sale of fixed assets was SEK 1 ~~million~~ million for the three months ended ~~February~~August 2931, 2004, compared to a gain on sale of of fixed assets of SEK ~~0.4~~2 million for the three months ended ~~February~~August 2831, 2003. ~~Numbers~~The ofloss ~~buses~~is ~~sold~~a ~~during~~result ~~the~~of ~~quarter~~sale ~~were~~of 70equipment ~~units~~from onthe ~~which~~closed wedown ~~realized~~depot ~~SEK 6 million~~ in ~~cash~~ Gothenburg.

Operating Costs

Operating costs consist primarily of personnel costs (which includes wages, salaries, social security fees and pension costs of bus drivers, mechanics and other employees), fuel, tires and other consumables costs, and other external costs, which include depot costs and head office administrative costs. Operatingand costs also consist of operating lease charges. Operating costs increased by SEK 3021 million, or 32%, from SEK 1,213026 million for the three months ended FebruaryAugust 2831, 2003 to SEK 1,243047 million for the three months ended FebruaryAugust 2931, 2004. This increase is due to a number of factors, which are explained below.

Additional factors

~~Fuel,~~There ~~tires~~has ~~and~~been ~~other~~a ~~consumable~~2% decrease ~~costs~~in ~~decreased~~personnel costs, by SEK 212 million ~~or 1%,~~ to SEK ~~248~~592 million, for the three months ended ~~February~~August 2931, 2004 from SEK ~~250~~ 604 million for the three months ended ~~February~~August 2831, 2003. The ~~reduction~~decreased ~~was~~costs are partly due to ~~lower~~lost contracts in the Gothenburg area of SEK 11 million and decreased pension costs of SEK 6 as a result of a new pension agreement and productivity improvements of SEK 5 million. This was offset by an effective pay increase of 4.7% resulting in increased salary costs of SEK 12 million.

In addition, fuel, tires and other consumable costs increased by 10% or SEK 19 million, to SEK 213 million for the three months ended August 31, 2004 from SEK 194 million for the three months ended August 31, 2003. The increase of SEK 19 million was due to an increase in fuel costs of SEK 11million, increased maintenance costs of SEK 7 million and increase

~~diesel~~in cleaning costs. ~~The~~of ~~average~~SEK ~~price~~1 ofmillion ~~diesel~~due ~~was~~to 1higher bus usage.8% ~~lower~~Our ~~versus~~average fuel price for the ~~corresponding~~ ~~period~~three ~~previous~~months ~~year~~in Sweden was SEK 6. ~~Othe~~01 ~~costs~~per ~~such~~liter ascompared ~~maintenance~~to 5.21 ~~costs~~per ~~were~~liter ~~stable~~in ~~during~~Sweden for the ~~periods~~same three months last year.

~~Personnel~~Other ~~costs~~external costs increased 1% by SEK 142 million, to SEK ~~679~~137 million, for the three months ended August ~~February 29~~31, 2004 from SEK ~~665~~135 million for the three months ended ~~February~~August 2831, 2003. ~~This~~The increase ~~resulted~~was ~~from~~largely adue ~~pay~~to ~~increase~~increased ofmarketing ~~5.98~~and ~~%, resulting~~sales ~~in higher staff~~ costs of ~~SEK 52 million, costs for bonuses~~ of ~~SEK 4~~ ~~million and higher pension premiums of~~ SEK 81 million. Inand ~~addition,~~increased ~~new contracts~~professional ~~added~~fees ~~SEK XX million~~ of ~~wage costs. These increaees were offset by reduction in wage costs due to loss of contracts~~ SEK XX1 million ~~and productivity gains of SEK XX million~~.

~~Other~~Operating ~~external~~lease ~~costs~~ charges increased by SEK 2112 million, to SEK ~~215~~105 million for the three months ended August ~~February 29~~31, 2004 from SEK ~~194~~93 million for the three months ended ~~February~~August 2831, 2003. This ~~was primarily due to~~ increase inwas ~~the provision~~principally ~~for~~a ~~future~~result ~~loss~~of onincreased ~~certain~~number ~~contracts contracts~~ of ~~SEK~~operational ~~60 million ,~~lease ~~provision~~buses ofwe ~~SEK~~are 6utilizing ~~million~~under ~~for~~operating ~~termination~~leases. The ~~costs~~total atnumber ~~depots~~of inbuses ~~Göthenburg~~under ~~due~~operating ~~to the~~leases ~~loss of contract. This~~ was ~~partially~~1,398 ~~offset~~as byof ~~reuction in net decrease in~~August ~~operational~~31, ~~costs~~2004 ~~due~~compared to ~~lost contracts SEK 33 million~~1,262 ~~reduced~~as ~~energy costs~~ of ~~SEK~~ 2August ~~million~~31, ~~and reduced operational costs of SEK 10 million~~2003.

Operating lease charges decreased by SEK 2 million to SEK 101 million for the three months ended February 29, 2004 from SEK 103 million for the three months ended February 28, 2003. This decrease was principally a result of lower interest rate resulting in a decreased cost of SEK 3.9 million. This is offset by an increased number of buses under operating lease which increased the operating lease charges by SEK 1.4 million. The total number of buses under operating leases was 1,317 as of February 29, 2004, compared to 1,156 as of February 28, 2003 and compared to 1301 as of November 30, 2003.

Depreciation and Amortization

Depreciation and amortization charges comprise principally depreciation of buses and other vehicles but also relate to depreciation of tools, fixtures and fittings, buildings and computer equipment. In addition, amortization of ~~goodwill~~ goodwill resulting from acquisitions of bus operations is included. Depreciation and amortization costs decreased by SEK 25 million from SEK 115 million for the three months ended February 28, 2003 to SEK 90 million for three months ended February 29, 2004, principally as a result of a reduction in the number of buses in the fleet that we own. The total number of buses we owned was 2,563 as of February 29, 2004, compared to 2,793 as of February 28, 2003. Total goodwill amortization was SEK 11 million for both periods.

~~Operating~~Depreciation ~~loss~~and amortization costs decreased by SEK 6 million from SEK 91 million for the three months ended August 31, 2003 to SEK 85 million for three months ended August 31, 2004 as a result of our planned reduction in the number of buses in our fleet that we own and our increased use of operating leases. Total goodwill amortization included in depreciation during the period was SEK 12 million. Number of owned units as of August 31, 2004 was 2,477.

Operating loss decreased by SEK 10 million from a loss of SEK 139 million for the three months ended February 28, 2003 to a loss of SEK 129 million for the three months ended February 29, 2004.Profit

Operating loss ~~from bus operations for public authorities~~ increased by by SEK 103 million from ana ~~operating~~ loss of SEK ~~103~~12 million for the three months ~~ended~~ ~~February 28, 2003, to an operating loss of SEK 114 million for the three months~~ ended ~~February 29, 2004. Operating profit from express bus services was~~ ~~SEK~~August ~~4 million for the three months ended February 29~~31, ~~2004 compared to an operating profit of SEK 3 million for the three months ended February 28,~~ 2003~~. Operating~~ ~~loss from coach hire services was SEK 2 for the three months ended February 29, 2004, compared~~ to ~~operating~~a loss of SEK 115 million for the three ~~months~~ ~~ended February 28, 2003. Head office items and other decreased by SEK 21 million from SEK 27 million for the three~~ months ended ~~February 28, 2003, to~~August ~~SEK 6 million for the three months ended February 29~~31, 2004.

Operating loss from bus operations for public authorities increased by SEK 8 million from an operating loss of SEK 2 million for the three months ended August 31, 2003 to a loss of SEK 10 million for the three months ended August 31, 2004, largely as a result of higher fuel costs.

Operating profit from Express Bus services increased by SEK 3 million to SEK 17 million for the three months ended August 31, 2004, from SEK 14 million for the three months ended August 31, 2003.

Operating profit from coach hire services was SEK 4 million for the three months ended August 31, 2004, compared to SEK 5 million for the three months ended August 31, 2003.

Head office items and other was SEK 14 million for the three months ended August 31, 2004, compared to SEK 18 million for the three months ended August 31, 2003.

Financial Income and Expenses

Financial income and expenses includes interest income from cash and cash equivalents and interest expense from bank loans ~~and other financial indebtedness~~. Financial income and expenses increased by SEK 7912 million ~~to net~~ ~~financial expenses of SEK 148 million for the three months ended February 29, 2004, compared~~ to ~~net financial expenses of~~ SEK 6983 million for the three months ~~ended~~ ~~February 28, 2003. The interest expense increased by SEK 24 million to SEK 80 million for the three months~~ ended ~~February~~August 2931, 2004 from SEK ~~56 million~~71 ~~for the three months ended February 28, 2003. The main reason is the refinancing of syndicated loans with secured senior notes at 9.125% and termination of our euro interest hedges of SEK 14~~ million. In the process we improved or liquidity position by approximately SEK 150 million and increased borrwoing by the same amount. Total foreign exchange loss increased by SEK 32 million from a loss of SEK 9 million for the three months ended ~~February~~August 2831, ~~2003,~~ ~~to a loss of SEK 41 million for the three months ended February 29, 2004. Also amortization of capitalised financing costs have increased, from SEK 4 million for the three months ended February 28,~~ 2003 ~~to SEK 27 million for the three months ended February 29, 2004~~. ~~This is due to a one-off write-down of capitalised financing costs connected to the old senior debt loan.~~

5This result can be primarily attributed to a higher interest charges of SEK 16 million due to increased borrowing and higher interest rates. This was offset by lower foreign exchange loss by SEK 4 million from a foreign exchange loss at SEK 8 million for the three months ended August 31, 2004 compared to a foreign exchange loss of SEK 12 million for the three months ended May 31, 2003.

Taxes

The standard rate of taxation in Sweden is 28%. ~~Concordia Bus has not paid any taxes for the period ended February 29, 2004.~~ The effective tax rate for the ~~three~~year ~~months~~ ended ~~February 29,~~August 31, 2004 was 110%. The difference toin the tax rate is due to a amortization of goodwill ~~(11~~of 3%), and valuation ~~allowance~~allowances of net- operating losses ~~(6)~~of 25%.

~~Year ended February 29, 2004 compared to Year ended February 28, 2003~~5

TheTrend following section provides an analysis of our results of operations between the actual numbers for the year ended February 29, 2004 as compared with the year ended February 28, 2003. The discussion compares our actual results for 2003 with our restated results for 2002.Information

During the quarter ended Aug 31, 2004, 342 buses were placed for tender, of which we submitted bids for 232. Of these 232, we already operate 156 buses. We have re-won and retained 12 buses, out of which we previously operated 9, and lost 6 buses during the quarter all relating to tenders submitted during previous quarter.

We envisage bidding for a further 560 units this year, of 614 units available. Of the 560, Concordia currently operates 166 units.

Half-year ended August 31, 2004 compared to the half-year ended August 31, 2003

The following section provides an analysis of our results of operations between the actual numbers for the half-year March 1 – August 31, 2004 as compared with the half-year March 1 – August 31, 2003.

Revenues

Revenues increased SEK 3 20 million, or 0.1% , from SEK 42,~~758~~355 million for the half-year ended ~~February~~August 2831, 2003 to to SEK 42,~~761~~375 million for the half-year ended ~~February~~August 2931, 2004.

Revenues from the provision of bus services for local public transportation authorities ~~decreased~~increased by SEK 2926 million, or 71%, from SEK 42,~~243~~067 million for the half-year ended ~~February~~August 2831, 2003 to SEK 42,~~214~~093 million for the half-year ended ~~February~~August 2931, 2004.

The ~~SEK~~increase 29in ~~million~~revenue ~~decrease~~ is principally due to ~~lost~~our ~~contracts~~winning ~~worth~~ of ~~SEK~~new ~~270~~contracts, ~~million.~~which ~~This~~provided ~~was~~an ~~partly~~increase ~~offset by new contracts worth~~ of SEK ~~165~~209 million ~~and~~which anwas ~~index~~offset ~~compensation~~by ~~due~~ the impact from ~~prior~~lost ~~years~~contracts of SEK 171 37 million. ~~The~~In ~~remaining~~addition, ~~increase~~the ofnet ~~SEK~~impact 39from ~~million~~the ~~is due to a combination of a~~ volume and price ~~movements~~changes ~~upon~~on the ~~renewal~~existing of contracts~~, increase~~ ~~from~~was ~~indexation~~lower ~~adjustments~~by ~~and~~SEK ~~changes~~12 ~~in existing contracts~~million.

Revenues from express bus services increased by SEK 3310 million, or 116%, from SEK ~~295~~166 million for the half-year ended ~~February~~August 2831, 2003 to SEK ~~328~~176 million for the half-year ended August ~~February 29~~31, 2004. The revenue increase derives primarily ~~from~~ ~~an increase of number of passengers carried,~~ from ~~2,7~~a ~~million~~higher ~~passengers~~yield ~~year~~from ~~ended~~passenger ~~February,~~tickets 28marginal ~~2003 to 3,0 million passengers year ended February 29, 2004~~ and ~~from~~an ~~a price~~ increase ofin 4%passengers ~~effective from July 1, 2003~~carried.

Revenues from coach hire services ~~declined~~remained byconstant ~~SEK~~at ~~17 million, or 13%, from~~ SEK ~~127~~63 million for the half-year ended ~~February~~August 2831, 2003 toand ~~SEK 110 million~~ for the half-year ended ~~February~~August 2931, 2004. ~~The revenue decline is a direct reflection of a lower level of business activities and decreased tourism, mainly due to the general recession in the economy.~~

Other revenues ~~increased~~amounted to by SEK 1759 million ~~from SEK 93 million~~ for the half-year ended ~~February~~August 2831, 2003 toand SEK ~~110~~43 million for the half-year ended ~~February~~August 2931, 2004. ~~The~~Other ~~increase~~revenues ~~was~~ largely aconsist ~~result~~of sales of ~~one-off~~diesel ~~compensation~~fuel ~~for~~and ~~the~~maintenance ~~driver relief~~and ~~breaks~~repair ~~introduced~~services into ~~Stockholm~~third ~~region~~parties.

During the year ended February 29, 2004, revenues of SEK 3,986 million were generated in Sweden, revenues of SEK 379 million were generated in Norway, and revenues of SEK 396 million were generated in Finland. During the year ended February 28, 2003, revenues of SEK 3,902 million were generated in Sweden, revenues of SEK 457 million were generated in Norway, and revenues of SEK 399 million were generated in Finland.

Gain on Sale of Fixed Assets

Gain on sale of fixed assets is comprised of sales of buses and other assets. Gain on sale of fixed assets increased from a ~~loss~~gain of SEK 42 million for the half-year ended ~~February 28~~August 31, 2003 to a gain of SEK 6 million for the half-year ended ~~February~~ 29August 31, 2004. The increase is due to a gain of SEK 4 million from sale of apartments in Finland.

Operating Costs

Operating costs consist primarily of personnel costs (which includes wages, salaries, social security fees and pension costs of bus drivers, mechanics and other employees), fuel, tires and other consumables costs, and other external costs, which include depot costs and head office administrative costs. Operating costs also include operating lease charges. Operating costs increased by SEK 3554 million, or ~~0,8~~2%, from at SEK 42,~~522~~202 million for the half-year ended ~~February~~ 28August 31, 2003 ~~compare~~ to SEK 42,~~557~~ 256 million for the half-year ended ~~February~~August 2931, 2004. ~~The~~This increase ~~of SEK 35 million~~ is due to a number of factors, which are outlined below.

Additional factors:

There has been a 1% increase in personnel costs, by SEK 10 million to SEK 1,298 million, for the half-year ended August 31, 2004 from SEK 1,288 million for the half-year ended August 31, 2003. The main reasons for the increased costs is due to an effective increase in salary of 4.7% or SEK 40 million, which was offset by decreased costs of lost contracts in the Gothenburg area of SEK 11 million and lower pension costs of SEK 7 million as a result of a new pension agreement and productivity improvements of SEK 12 million.

~~Additional~~In addition, ~~details~~fuel, tires and other consumable costs have increased by SEK 26 onmillion ~~Operating~~or ~~Costs:~~6% to SEK 470 million for the half-year ended August 31, 2004 from SEK 444 million for the half-year ended August 31, 2003, largely due to higher maintenance costs of SEK 15 million and higher fuel costs of SEK 9 million due to increased fuel prices.

~~Fuel,~~Operating ~~tires~~lease ~~and~~charges ~~other consumable costs have~~ increased by SEK 1119 million or 2by 10% to SEK ~~930~~ 208 million for the half-year ended ~~February~~August 2931, 2004 from SEK ~~919~~189 million for the half-year ended August ~~February 28~~31, 2003. ~~The~~This increase iswas ~~largely~~principally ~~due to~~ a ~~high~~result ~~diesel price~~of ~~during the first quarter resulting in~~ increased ~~costs~~use ~~by SEK 14 million~~of ~~and~~operating ~~higher~~leases ~~maintenance~~for ~~costs~~buses. inTotal ~~the~~number ~~first quarter~~ of ~~SEK~~buses 10under ~~million.~~operating ~~This~~leases ~~has~~was ~~been~~1,398 ~~offset by the lower volumes~~ as ~~a result~~ of ~~lost~~August ~~contracts~~31, ~~which~~2004, ~~resulted~~compared ~~overall in~~to a1,262 ~~lower~~as ~~cost~~ of ~~SEK~~August 1331 ~~million~~2003.

~~Personnel~~Other external costs decreased ~~have~~by ~~increased~~SEK by1 million to SEK 13280 million, orfor 0the half-year ended August 31,~~5%,~~ 2004 from SEK ~~2,597~~ 281 million for the half-year ended ~~February~~August 2831, 2003. The decrease is mainly due to decreased damage costs of SEK 28 million,~~610~~ ~~for~~offset ~~the~~by increased ~~year~~subcontracting ~~ended February~~costs ~~29,~~of ~~2004~~SEK 7 million.

The increase of SEK 13 million is due to a reduction of drivers in our lost contracts resulting in lower wage costs of SEK 66 million, productivity gains in Stockholm of SEK 16 million and other reductions of SEK 4 million. This was offset by an effective pay increase of 3.8% in resulting in higher wage costs of SEK 47 million and higher pension premiums of SEK 11 million. In addition, the need for extra drivers in Stockholm due to the new legislation regarding relief breaks has resulted in increased wage costs of SEK 27 million. During the fourth quarter, personell costs have increased by SEK 14 million due to new contracts (Skaraborg).

Operating lease charges increased by SEK 38 million, or 16%, from SEK 350 for the year ended February 28, 2003 to SEK 388 for the year ended February 29, 2004. This increase was principally a result of our increased use of operating leases for buses. The total number of buses under operating leases was 1,317 as of February 29, 2004, compared to 1,156 as of February 28, 2003.

Other external costs decreased by SEK 27 million to SEK 629 million for the year ended February 29, 2004 from SEK 656 million for the year ended February 28, 2003. The decrease was mainly due to a reduction of subcontractors of SEK 38 million and decreased administration costs of SEK 7 million due to normalisation of Stockholm operations. This was partly offset by higher operational costs.

Depreciation and Amortization

Depreciation and amortization charges comprise principally the depreciation of buses and other vehicles but they also relate to the depreciation of tools, fixtures and fittings, buildings and computer equipment. In addition, amortization of goodwill resulting from acquisitions of bus operations is also included. Depreciation and amortization costs decreased by SEK 409 million, or 10 5%, from SEK 177 ~~404~~ million for the half-year ended ~~February~~August 2831, 2003 to SEK ~~364~~ 168 million for the half-year ended ~~February~~August 2931, 2004 principally as a result of ~~the~~our planned ~~shift~~reduction ~~towards~~in ~~increased~~the ~~operational~~number ~~leasing~~ of buses in our fleet that we own and ~~away~~our ~~from~~increased ~~ownership.~~use of operating leases. Total goodwill amortization was SEK 4423 million for the half-year ended ~~February~~August 2931, 2004, ~~which~~compared ~~remained~~to ~~constant~~SEK ~~with~~22 million for the ~~year~~half year ended ~~February~~August 2831, 2003. Number of owned units as of August 31, 2004 was 2,477.

Operating Profit/loss

Operating loss was SEK ~~155~~ 43 million for the half-year ended ~~February~~August 2931, 2004, compared to an operating loss of SEK ~~172~~22 million for the half-year ended ~~February~~ 28August 31, 2003. ~~due~~Operating toloss ~~overhead~~from bus ~~cost~~operations ~~reductions~~for ~~and~~local ~~higher~~public ~~contribution~~transportation ~~from~~authorities was SEK 17 million for the ~~new~~half-year ended August 31, 2004, compared to an operating profit of SEK 9 million for the half-year ended August 31, 2003, mainly due to operating lease charges and ~~renewed~~higher ~~contracts~~maintenance and fuel costs.

Operating ~~loss~~profit from express bus ~~operations~~services ~~for~~decreased ~~local~~by ~~public~~SEK ~~transportation authorities~~1 ~~was~~million to SEK 6419 million for the half-year ended ~~February~~August 2931, 2004, compared to SEK 7920 million for the half-year ended ~~February~~August 2831, 2003. Operating profit from coach hire services of SEK 6 million for the half-year ended August 31, ~~mainly~~2004 ~~due~~remained ~~increased~~constant with the ~~operating~~half-year ~~lease~~ended ~~charges~~August 31, 2004. Head office items and ~~provision~~others was SEK 28 million for ~~future~~the ~~losses~~half-year ended August 31, 2004 compared to SEK 35 million for the half-year ended August 31, 2003.

Operating profit from express bus services remained the same at SEK 31 million for the year ended February 29, 2004 compared to the year ended February 28, 2003 . The increased revenues have been offset by higher costs for subcontracting.

Operating profit from coach hire services decreased from SEK 8 million for the year ended February 28, 2003, to SEK 4 million for the year ended February 29, 2004.

Head office costs and other items decreased from SEK 103 million for the year ended February 28, 2003, to SEK 66 million for the year ended February 29, 2004 due largely to termination compensation payments in the period to February 28, 2003 of SEK 7 million and overall reduction in professional charges and reduction in heads during the period to February 29, 2004

Financial Income and Expenses

Financial income and expenses includes interest income from cash and cash equivalents and interest expense from loans made by banks and other financial indebtedness. Financial income and expenses ~~increased~~(net) bydecreased SEK 5011 million from a net financial expense of SEK ~~265~~135 million for the half-year ended ~~February~~August 2831, 2003 to SEK ~~315~~124 million for the half-year ended ~~February~~August 2931, 2004., ~~The~~due ~~increase~~to ~~can~~higher ~~be partly~~interest becosts ~~explained by an increase~~ of ~~amortization of deferred financing costs by~~ SEK 24 28 million, ~~due~~which ~~release~~was ofoffset ~~costs~~by ~~related~~increased ~~to senior debt and the refinancing of syndicated loans with secured senior notes at 9.125% Our~~ foreign exchange ~~losses~~ ~~were~~gain ~~also~~of SEK 2139 million ~~higher compared to the year ended February 28, 2003~~.

Taxes

The standard rate of taxation in Sweden is 28%. ~~Concordia Bus did not pay any taxes for the year ended February 29, 2004.~~ The effective tax rate for the half-year ended August ~~February 29~~31, 2004 was 260%. The difference to the tax rate is due to amortization of goodwill ~~(5%) and an adjustment~~ of ~~deferred tax asset for tax loss carry-forward~~ 4%, ~~and valuation~~ allowance of net operating losses (1of 24%).

Trend Information

During the first half-year ended ~~February~~August ~~29,~~31 2004, we605 ~~have submitted tenders for 1,346~~ buses ~~out of the 1,999 buses that~~ were ~~open~~placed for ~~competitive~~tender, ~~tenders~~of which we ~~included~~submitted ~~contracts~~bids for ~~routes where we already operated 573 buses~~465. Of these 1 465,~~346~~ ~~units~~we ~~results~~already ~~for 1,318~~operate ~~units have~~291 ~~been announced~~buses. We have re-won and retained ~~203~~29 buses, out of ~~the~~which ~~573~~we ~~buses~~previously we operated. ~~Lost~~21, ~~units~~and ~~include~~lost 114 ~~our~~buses. ~~Gothenburg~~The ~~contract~~114 ~~which was for 140~~ buses~~. In~~ ~~addition,~~lost wemainly ~~won~~comprise a ~~total~~phase of2 ~~354~~tender ~~units~~in ~~from~~Vantaa, Finland ~~our~~of ~~competitors.~~60 Webuses ~~currently await~~and ~~results on~~ a ~~further~~bus 28tender ~~units~~in Helsingborg of ~~which~~52 ~~Concordia~~buses. ~~operates~~This 16provides us ~~units.~~with ~~We have~~a ~~prolonged~~net ~~our~~renewal ~~contracts~~rate inof ~~Karlstad~~41% ~~for~~to ~~one~~date ~~year~~based ~~following~~on ~~court~~our ~~decision which~~number ~~upheld~~of ~~Concordia’s~~buses ~~complaint~~under operation.

We anticipate tenders for some 1,500 buses during the financial year ending February 28, 2005. Of which we have 250 or 36 % of the total buses in Sweden, 80 buses or 16% of the total in Norway and 158 or 53% of the total buses in Finland.7

Notably we have 25 contracts expiring. These also cover loss making contracts in Vantaa and Sweden.

Indexation

Concordia receives cost increase compensation from CPTA at varying frequencies at stipulated indices in the contracts. In most recent contracts the weighting of various cost mix and the links to defined indices have improved however we continue to suffer from mismatch between our underlying cost base and weight of indices and mismatch of cost increases in related index development. During the year we have been undercomensated for our cost increases due to the above factors and in particular our wage costs have increased significantly. Whilst we have been conservative in our accounting the final indices of labour costs for 8 months period from July to February are not known. The development of Transport labour index where bus operators constitute 25% of the total wages remains uncertain.

Currently we are in the process of presenting a proposal to SLTF – CPTA association for a new structure covering correct weighting of cost elements as well as a specific Bus operator labour index developed by SCB – Swedish statistics beaureu. We remain optimistic that an appropriaret comensation mechanism will be established shortly between the two bodies and would become effective during the next 12 months.

Liquidity and Capital Resources

Concordia will require cash principally to repay indebtedness incurred in connection with financing its acquisition of Concordia Bus Nordic AB. Most of this indebtedness is comprised of the senior subordinated notes issued in January 2000 and senior secured notes issued in January 2004.

The outstanding amount of the senior subordinated notes as of ~~February 29~~August 31, 2004 was €160 million. These notes will mature on February 15, 2010 and carry a fixed interest rate of 11% per annum. Interest is paid on February 15 and August 15 of each year until maturity. The outstanding amount of the senior secured notes as of August 31, 2004 was €130 million. The senior secured notes will mature on August 1, 2009 and carry a fixed interest rate of 9.125% per annum. Interest is paid on February 1 and August 1 of each year until maturity.

~~During~~As ~~January~~of ~~2004~~August ~~Concordia’s~~31, ~~wholly owned subsidiary~~ 2004 Concordia ~~Bus Nordic~~had ABtotal ~~refinanced~~net ~~its~~indebtedness ~~syndicated credit facilities with the issue~~ of ~~secured senior~~SEK ~~notes~~2,466 ~~of €130~~ million. ~~The proceeds~~after ~~were used to repay senior credit facilities of~~ the ~~Group and increase~~deduction ~~liquidity~~of ~~poisition~~cash balance of ~~the~~SEK ~~group~~202 million. The ~~senior secured notes will mature on August 1, 2009 and carry a fixed~~ interest ~~rate~~expense offor ~~9,125%~~the ~~per~~three ~~annum. Interest is~~months ~~paid~~ended ~~on February 1 and~~ August 131, of2004 ~~each~~was ~~year~~SEK ~~until~~70 ~~maturity~~million. ~~The first interest payment is falling due on August 1, 2004.~~

Concordia has entered into interest and foreign exchange hedging arrangements in accordance with the terms of its debt obligations. See the sub-heading “Foreign Exchange” in the section “Quantitative and Qualitative Disclosure about Market Risk.”

We have hedges in place for 50% of the total interest payable during the financial year ending February 28, 2005. In addition we have applied our hedges for SEK interest rates towards exposure on the operating lease debt. We estimate approximately 9% of the operating lease exposure is covered by our interest caps and Swaps.

Net cash used by operating activities was negative SEK 93 million for the six months ended August 31, 2004, compared to positive cash flow of SEK 17 million for the six months ended August 31, 2003, the difference is mainly due to higher interest payments of SEK 29 million as a result of refinancing and change in working capital of SEK 37 million. We also had a retroactive compensation from the Stockholm CPTA in May 2003 of SEK 23 million as a result of a law requiring more frequent breaks for drivers.

The change in working capital is mainly due to two one-off items. We had large payments in March to suppliers involved in the refinancing activities of SEK 12 million. We also had a one-off effect on the cash flow when we started reporting VAT in Norway, this is approximately SEK 15 million for the first six months.

Net capex was SEK 47 million for the six months ended August 31, 2004. Investments in tangible fixed asset were SEK 76 million for the six months ended August 31, 2004, compared to SEK 10 million for the three months ended August 31, 2003. Of the total capital expenditure SEK 29 million is attributable to purchase of used buses in relation to a new tender in Hedmark, which started in April 2004, SEK 23 million relate to purchase of used buses for the Skaraborg region, and SEK 9 million are attributable to buses we have purchased and sold during the first six months. The remaining capital expenditure are purchase of equipment in Sweden and Norway.

During the period we have sold buses worth of SEK 20 million, of which SEK 9 million are purchased and sold during the first half year. We have also sold apartments in Finland worth of SEK 9 million.

As of February 29, 2004 Concordia had total net indebtedness of SEK 2,345 million after the deduction of cash balance of SEK 351 million. The interest expense for the twelve months ended February 29, 2004 was SEK 242 million.

We are currently undertaking a review of our interest rate FX exposure. Under the syndicated facilities we were required to hedge 50% of the senior interest payments for the next three years. We have hedges in place for 30 % of the total interest payable during the financial year ending February 28, 2005. In addition we have applied our hedges for SEK interest rates towards expsoure on the operating lease debt. We estimate approximately 8 % of the operating lease exposure is covered by interest caps and Swaps.

Net cash provided by operating activities was SEK 4 million for the year ended February 29, 2004, compared to SEK 11 million for the year ended February 28, 2003.

Investments in tangible fixed asset was was SEK 30 million for the year ended February 29, 2004, compared to SEK 253 million for the year ended February 28, 2003, when we had investments in connection with a start up of a large contract in Stockholm.

The restructuring of the fully owned subsidiary Concordia Bus Nordic has had an impact on the cash flow. During the year ended February 29, 2004, we had investments of capitalised financing costs of SEK 48 million. In connection with this we have repayments of the senior credit facilities of SEK 984 million including a foreign exchange loss of SEK 25 million. We have repaid financial lease debts by SEK 6 million.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The principal market risks (i.e., the risk of loss arising from adverse changes in market rates and prices) to which we are exposed are:

• Interest rates on debt;

• Foreign exchange rates;

• Fuel prices; and

• Inflation.

The following risk management discussion and ~~that~~ the estimated amounts generated from analytical techniques are forward looking statements of the market risk assuming certain market conditions occur. Our actual results in the future may differ materially from these projected results due to actual developments in the global financial markets.

Interest Rates

We currently hedge parts of our exposure to interest rate fluctuations on our lease debt through the use of derivative instruments. We have entered into Swedish Kronor interest rate swaps and caps to fix a portion of the interest part within the lease payments we make under the lease debt.

Based on the nominal value of the operational lease debt at ~~February 29~~August 31, 2004 of SEK 1,~~948~~950 million, a 1% change in interest rates would increase lease charges by approximately SEK 19. 5 million per annum. Senior notes outstanding at ~~February~~August 2931, 2004 with a carrying value of SEK 2,~~673~~648 million have been excluded from the above interest rate sensitivity analysis because they bear a fixed rate of interest.

Foreign Exchange

We are also exposed to currency fluctuations on loans, primarily as a result of having to make interest payments in Euro on our senior note loans. We have entered into collar arrangements through the sale of puts and the purchase of calls with the same settlement dates. While this arrangement caps the amount of benefit we can obtain from an appreciation of the Swedish Kronor against the Euro, it also caps our potential increased interest costs through a depreciation of the Swedish Kronor against the Euro. ~~Under~~Our ~~the~~policy ~~Secured~~is ~~noted we were required~~ to hedge 50% of the exposure on our ~~future~~two coming interest payments on the senior ~~subordinated~~ notes against adverse movements for us in the Swedish Kronor/Euro exchange rate. ~~Our~~See ~~current~~the ~~exposure~~subheading ~~under~~“Liquidity ~~the~~and Capital ~~existing~~Resources” ~~hedges~~in ~~which~~the ~~cover~~section xx“Management’s %Discussion and Analysis of ~~interest~~Financial ~~payments~~Condition ~~for~~and ~~the~~Results ~~year~~of ~~ending~~Operations.” ~~February~~We ~~28,~~estimate ~~2005~~that ~~for~~ a 10% ~~depreciation~~ depreciation in the value of the Swedish Kronor against the Euro would increase our interest costs by approximately SEK ~~27,2~~26.9 million per annum. ~~See the subheading “Liquidity and Capital Resources” in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”~~

Fuel Prices

Concordia is also exposed to commodity price risk through its requirements for diesel fuel. Diesel fuel is priced in the international commodity markets in US dollars. We purchase our diesel fuel requirements out of our operating revenue, which is largely denominated in Swedish Kronor. Therefore, we are exposed to currency fluctuation risk between the dollars and the Swedish Kronor. We currently have hedges in place to purchase portions of our diesel fuel at fixed SEK prices through February 28, 2005. We hedge only the non-tax portion of our diesel fuel costs. We estimate that a 10% depreciation in the value of the Swedish Kronor against the dollar would increase our diesel fuel costs by approximately SEK 7, 12.5 million per annum.

Inflation

Inflation had no material impact on our operations during the ~~year~~three months ended ~~February~~ 29August 31, 2004 or the three months ended August 31, 2003. However, due to the nature of our contractual business where cost increases are compensated through movements in agreed indices (elements of total inflation) we are ~~currently~~ subject to under-compensation due to a mismatch between our industry costs and our relative level of compensation from the indices which the local transportation authorities use to compensate us. A 1% increase in inflation would have a positive benefit of approximately SEK 9 6.1 million per annum when compared to the previous year.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SECOND QUARTER

(in millions of SEK except loss per share)	Note	June 1, 2004 – August 31, 2004		June 1, 2003 – August 31, 2003
		(Unaudited)		(Unaudited)

Net revenue	1	1,118		1,103

Fuel, tires and other consumables		(213	)	(194	)
Personnel costs		(592	)	(604	)
Operating lease charges	4	(105	)	(93	)
Other external costs		(137	)	(135	)
Gain (Loss) on sale of fixed assets		(1	)	2
Depreciation and amortization		(85	)	(91	)
Operating Profit (Loss)	1	(15	)	(12	)

Interest income		1		1
Interest expense and similar items	2	(84	)	(72	)
Financial income and expenses		(83	)	(71	)
Loss after financial items		(98	)	(83	)

Taxes		(1	)	33

Net loss for the period		(99	)	(50	)

Loss per share (in SEK)		(19,798	)	(10,088	)

The accompanying notes are an integral part of these Consolidated Interim Financial Statements

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE ~~FOURTH~~HALF ~~QUARTER~~YEAR

(in millions of SEK except loss per share)	Note	~~December~~March 1, ~~2003~~2004 -– ~~February~~August 2931, 2004		~~December~~March 1, ~~2002~~2003 -– ~~February~~August 2831, 2003 ~~Reported~~		~~December 1, 2002 - February 28, 2003 Restated*)~~
Net revenue	1	1,203		1,189		1,189
		(Unaudited)		(Unaudited)
Fuel, tires and other consumables		(248	)	(250	)	(250	)
Net revenue	1	2,375		2,355
Personnel costs		(679	)	(666	)	(665	)
Fuel, tires and other consumables		(470	)	(444	)
Other external costs		(215	)	(194	)	(194	)
Personnel costs		(1,298	)	(1,288	)
Operating lease charges	54	(~~101~~208	)	(~~103~~189	)	~~(103~~	)
Depreciation and amortization		(90	)	(115	)	(115	)
Other external costs		(280	)	(281	)
Gain (Loss) on sale of fixed assets		16		~~(13~~2	)
Operating loss	1,2	(129	)	(152	)	(139	)
Depreciation and amortization		(168	)	(177	)
Interest income		3		3		3
Operating Profit (Loss)	1	(43	)	(22	)
Interest expense and similar items	3	(151	)	(73	)	(73	)
Interest income		1		3
Financial income and expenses		(148	)	(70	)	(69	)
Interest expense and similar items	2	(125	)	(138	)
Loss after financial items		(277	)	(222	)	(209	)
Financial income and expenses		(124	)	(135	)
Taxes		5		37		37
Loss after financial items		(167	)	(157	)
Net loss for the period		(272	)	(185	)	(172	)
Taxes		(1	)	46
Number of shares		5,000		5,000		5,000
Net loss for the period		(168	)	(111	)
Loss per share (SEK)		(54,493	)	(36,919	)	(34,328	)
Loss per share (in SEK)		(33,367	)	(22,300	)

*) In fiscal 2003, we had initially booked our loss on our sale of fixed assets in the fourth quarter as an year-end adjustment. We have now restated this loss to report the loss in the period when the assets were sold. This restatement does not change our total operating loss figure for fiscal 2003. It does impact the operating profit/(loss) figure on a quarterly basis, however, by increasing the loss (or reducing the profit) for each of the first three quarters of fiscal 2003.

The accompanying notes are an integral part of these Consolidated Interim Financial Statements

CONSOLIDATED ~~STATEMENTS~~ OFBALANCE ~~OPERATIONS~~SHEETS

FOR THE FULL YEAR

ASSETS (In millions of SEK)	Note	August 31, 2004	February 29, 2004
		(Unaudited)

Fixed assets
Goodwill		705	721
Total intangible fixed assets		705	721

Buildings and land		2	2
Equipment, tools, fixtures and fittings		29	34
Vehicles		1,407	1,491
Total tangible fixed assets		1,438	1,527

Capitalized borrowing costs		92	99
Other long-term receivables		1	10
Receivable due from group companies		32	29
Total financial fixed assets		125	138

Total fixed assets		2,268	2,386

Current assets

Inventories		30	30

Accounts receivable		295	310
Other current receivables		23	100
Accrued income and prepaid expenses		160	238
Total receivables		478	648

Cash and bank balances	3,8	202	346

Total current assets		710	1,024

TOTAL ASSETS		2,978	3,410

(in millions of SEK except loss per share)	Note	March 1, 2003 - February 29, 2004		March 1, 2002 - February 28, 2003 Reported		March 1, 2002 - February 28, 2003 Restated*)
Net revenue	1	4,761		4,758		4 758
Fuel, tires and other consumables		(930	)	(919	)	(919	)
Personnel costs		(2,610	)	(2,597	)	(2,597	)
Other external costs		(629	)	(656	)	(656	)
Operating lease charges	5	(388	)	(350	)	(350	)
Depreciation and amortization		(364	)	(404	)	(404	)
Gain (Loss) on sale of fixed assets		5		(4	)	(4	)
Operating loss	1,2	(155	)	(172	)	(172	)
Interest income		7		10		10
Interest expense and similar items	3	(315	)	(265	)	(265	)
Financial income and expenses		(308	)	(255	)	(255	)
Loss after financial items		(463	)	(427	)	(427	)
Taxes		54		83		83
Net loss for the period		(409	)	(344	)	(344	)
Number of shares		5,000		5,000		5,000
Loss per share (SEK)		(81,721	)	(68,780	)	(68,780	)

*) In fiscal 2003, we had initially booked our loss on our sale of fixed assets in the fourth quarter as a year-end adjustment. We have now restated this loss to report the loss in the period when the assets were sold. This restatement does not change our total operating loss figure for fiscal 2003. It does impact the operating profit/(loss) figure on a quarterly basis, however, by increasing the loss (or reducing the profit) for each of the first three quarters of fiscal 2003.

The accompanying notes are an integral part of these Consolidated Interim Financial Statements

CONSOLIDATED BALANCE SHEETS

(In millions of SEK)	Note	February 29, 2004		February 28, 2003
SHAREHOLDERS’ EQUITY AND LIABILITIES (in millions of SEK)	Note	August 31, 2004		February 29, 2004
ASSETS
		(Unaudited)
Fixed assets
Shareholders’ equity
Goodwill		720		765
Restricted equity
Total intangible fixed assets		720		765
Share capital (5 000 shares at par value SEK 100)		1		1
Buildings and land		2		2
Restricted earnings		—		—
Equipment, tools, fixtures and fittings		33		38
Total restricted equity		1		1
Vehicles		1,492		1,793
Non-restricted equity
Total tangible fixed assets		1,527		1,833
Retained earnings		(317	)	83
Capitalized borrowing costs		99		92
Net loss		(168	)	(409	)
Other long-term receivables		6		5
Total non-restricted equity		(485	)	(326	)
Receivable due from group companies		29		25
Total shareholder’s equity	7	(484	)	(325	)
Total financial fixed assets		134		122
Liabilities
Total fixed assets		2,381		2,720
Provisions:
Current assets
Provisions for pensions and similar commitments		51		53
Inventories		30		35
Provisions for loss contracts		54		86
Accounts receivable		299		335
Deferred tax liability		2		2
Other current receivables		40		37
Total provisions		107		141
Accrued income and prepaid expenses		215		177
Non current liabilities
Total receivables		554		549
Financial leasing obligations	3	13		16
Cash and bank balances	4	351		199
Senior subordinated notes	3	2,648		2,673
Total current assets		935		783
Total non current liabilities		2,661		2,689
TOTAL ASSETS		3,316		3,503
Current liabilities
Short-term portion of financial leasing obligations	3	7		7
Accounts payable		211		285
Other current liabilities		136		159
Accrued expenses and deferred income		340		454
Total current liabilities		694		905
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES		2,978		3,410

PLEDGED ASSETS AND CONTINGENT LIABILITIES	6	August 31, 2004	Feb 29, 2004
		(Unaudited)
Pledged assets		2,038	2,238
Contingent liabilities		670	670
TOTAL PLEDGED ASSETS AND CONTINGENT LIABILITIES		2,708	2,908

The accompanying notes are an integral part of these Consolidated Interim Financial Statements

CONSOLIDATED BALANCE SHEETS

(in millions of SEK)	Note	February 29, 2004		February 28, 2003
		(Unaudited)
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity
Restricted equity
Share capital (5 000 shares at par value SEK 100)		1		1
Restricted reserves		-2		27
Total restricted equity		-1		28
Non-restricted equity
Retained earnings		80		394
Net loss		(409	)	(344	)
Total non-restricted equity		(329	)	50
Total shareholder’s equity	8	(330	)	78
Liabilities
Provisions:
Provisions for pensions and similar commitments		61		69
Provisions for loss contracts		86		46
Deferred tax liability		0		56
Total provisions		147		171
Non current liabilities
Liabilities to credit institutions	4	16		858
Senior subordinated notes	4	2,673		1,460
Total non current liabilities		2,689		2,318
Current liabilities
Short-term portion of long-term liabilities	4	—		145
Accounts payable		285		244
Other current liabilities		114		104
Accrued expenses and deferred income		411		443
Total current liabilities		810		936
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES		3,316		3,503
PLEDGED ASSETS AND CONTINGENT LIABILITIES	7
Pledged assets		2,423		2,848
Contingent liabilities		648		648
TOTAL PLEDGED ASSETS AND CONTINGENT LIABILITIES		3,116		3,496

The accompanying notes are an integral part of these Consolidated Interim Financial Statements

CONSOLIDATED CASH FLOW STATEMENTS

	Note	Group March 1, ~~2003~~2004 -– ~~February~~August 2931, 2004		Group March 1, ~~2002~~2003 -– ~~February~~August 2831, 2003
		(Unaudited)		(Unaudited)
Cash flow from operating activities
Loss after financial items		(~~463~~167	)	(~~427~~157	)
- Reversal of depreciation and amortization		~~363~~168		~~404~~177
- Reversal of capital (gains) losses		(65	)	4(2	)
- Reversal of change of provisions		32(30	)	16(18	)
- Reversal of amortization of deferred financing costs		41
- Reversal of capitalized cost amortizations		9		9
- Reversal of foreign exchange (gain)/loss		25
Change in interest receivables		(1	)	(2	)
Change in interest receivables		1		3
Change in interest liabilities		(2	)	2
Change in interest liabilities		6		27
Paid taxes		0		—
Paid taxes		0		2
Exchange loss/(gain)		(21	)	15
		(2	)	29
		(49	)	24
Change in working capital
Increase (-)/decrease (+) in stock		50		(4	)
Increase (-)/decrease (+) in current receivables		~~(11~~76	)	~~(16~~55	)
Increase (+)/decrease (-) in current liabilities		12(120	)	2(66	)
Net cash flow provided by (used in) operating activities		4(93	)	1117
Cash flow from investing activities
Investments in financial fixed assets		~~(48~~—	)	—
Investments in land, buildings, machinery and equipment		(3076	)	(~~253~~10	)
Sales of land, buildings, machinery and equipment		2120		758
Sale of financial fixed assets		—9		7—
Net cash flow used in investing activities		(5747	)	(~~171~~2	)
Cash flow from financing activities
Proceeds from borrowings		1,198		28
Payments of long-term borrowings		(3	)	(20	)
Repayments of long-term borrowings		(990	)	(86	)
Net cash flow provided by (used in) financing activities		(3	)	(20	)
Refinancing costs and other		—		(6	)
INCREASE (DECREASE) IN CASH AND BANK BALANCES		(143	)	(5	)
Net cash flow provided by (used in) financing activities		208		(64	)
CASH AND BANK BALANCES AT BEGINNING OF PERIOD		346		199
INCREASE (DECREASE) IN CASH AND BANK BALANCES		155		(223	)
Translation difference		(1	)	(1	)
CASH AND BANK BALANCES AT BEGINNING OF PERIOD		199		422
CASH AND BANK BALANCES AT END OF PERIOD		202		193
Translation difference		(3	)	0
CASH AND BANK BALANCES AT END OF PERIOD		351		199

The accompanying notes are an integral part of these Consolidated Interim Financial Statements

1514

NOTES TO UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)

(All amounts in millions of SEK unless otherwise stated)

Organization

Concordia Bus AB, together with its subsidiaries (“Concordia”), is a Swedish registered limited liability company, wholly owned by Concordia Bus Holding AB (reg no 556574-8240) with its registered office in Stockholm, Sweden. The ultimate parent company of the group is Concordia Bus BV, a company domiciled in the Netherlands.

The operations of Concordia consist of providing regular bus services under contract through its subsidiary Concordia Bus Nordic AB, to transit authorities in Sweden, Norway and Finland. In addition to contracted services, Concordia also supplies extensive express bus services over major portions of Sweden, as well as charter and tour bus services, mainly in Gothenburg and Stockholm.

The unaudited consolidated financial statements for the year ended February 29, 2004 and 2003 include adjustments, all of which are normal recurring adjustments, which Concordia’s management considers necessary for a fair presentation of the results for these unaudited periods.

Accounting principles

The same accounting policies and methods of computation are followed infor the ~~consolidated~~six ~~interim~~months ended August 31, 2004 consolidated financial statements as ofcompared with the most recent annual financial ~~and~~statements ~~for~~except that the ~~three~~Company ~~months~~as ~~ended~~of ~~February~~March 291, 2004 ashas ~~compared~~adopted the Swedish Accounting Standards Council’s recommendation RR29 – Employee benefits. In accordance with Swedish GAAP, the ~~most~~adoption of RR29 should be accounted for as a ~~recent~~change ~~annual~~in ~~financial~~accounting ~~statements~~principles meaning that the cumulative impact of adopting this new recommendation relating to periods prior to March 1, 2003 are adjusted at the date of the opening balance sheet. The impact of the change is as follows:

	Previously reported		Change in accounting policy		Change in accounting policy		Restated amounts
					(tax effect)
Pension provision as of February 29, 2004	60		(7	)			53
Deferred tax liability as of February 29, 2004	—		—		2		2
Shareholder’s equity as of February 29, 2004	(330	)	7		(2	)	(325	)

Going concern

Concordia has approximately SEK 2,~~391~~661 million of long-term debt due to third parties, ~~excluding~~including long-term finance lease obligations. Concordia’s ability to service the existing debt, ~~(interest~~including amortization and ~~amortization)~~interest, is dependent on the underlying businesses generating sufficient cash flow and distributable earnings. ~~Revenues~~Furthermore Concordia ~~generated~~Bus byAB’s ~~the~~ability ~~underlying~~to ~~businesses~~service ~~during~~their existing debt is dependent of the ability ~~period~~to transfer profit from Concordia Bus Nordic AB through Concordia Bus ~~March~~Nordic 1,Holding ~~2003~~AB –to ~~February~~Concordia 29Bus AB. The non-restricted equity in the underlying companies, ~~2004~~available ~~have~~for ~~not~~dividends, have been ~~sufficient~~reduced during the year due to ~~cover their~~losses, which furthermore limits the company’s possibilities to ~~costs~~receive dividends from subsidiaries.

~~Concordia~~The ~~Bus~~group ~~Nordic~~profit AB and ~~its subsidiaries are continuing~~ ~~to implement~~loss ~~cost~~statement ~~reduction initiatives~~in ~~and~~Concordia ~~have~~August ~~started~~31, to2004 ~~see~~shows that ~~signs~~revenues ofgenerated ~~significant~~by ~~improvements~~the ~~in compensation~~underlying ~~levels~~businesses ~~from~~during ~~their~~the ~~contracts~~period ~~with~~March ~~public transportation~~1, ~~authorities. If~~2004 ~~the cost~~-~~cutting~~ ~~initiatives~~August or31, ~~other~~2004 ~~measures~~have ~~that management deem required are~~ not ~~successful~~been ~~and~~sufficient ~~losses~~to ~~continue,~~cover the ~~these~~parent ~~companies~~company’s ~~equity~~costs. ~~bases~~Concordia ~~may~~Bus ~~need~~Nordic toAB ~~be restored~~ and~~, if they~~ its subsidiaries are continuing ~~not able~~ to ~~comply~~ implement ~~with~~changes in the operations, ~~covenants~~changes ofto the ~~debt~~administrative ~~agreements,~~structure ~~they~~as ~~may~~well ~~require~~as ~~waivers~~changes ~~from~~in the ~~their~~capital ~~lenders~~structures. orWe ~~additional~~have ~~equity~~started ~~funding~~to insee ~~order~~signs toof ~~continue~~significant toimprovements ~~present~~in ~~financial~~compensation ~~statements~~levels ~~under~~from ~~the~~their ~~assumption~~contracts ~~that Concordia~~with ~~will~~public ~~continue as~~transportation ~~a going concern~~authorities.

~~These~~If ~~financial~~the ~~statements~~cost-cutting ~~have~~initiatives ~~been~~or ~~prepared~~other ~~under~~measures ~~the~~that ~~assumption~~management ~~that~~deem ~~the~~required ~~group~~are ~~will~~not be successful inand ~~its~~losses ~~initiatives and~~continue, ~~consequently,~~these ~~they~~companies’ ~~have~~equity bases ~~been~~may ~~prepared~~need ~~assuming~~to ~~that~~be ~~Concordia~~restored ~~will~~and, ~~continue~~if asthey aare ~~going~~not ~~concern. These~~able ~~financial~~to ~~statements~~comply ~~have~~with ~~also been prepared under~~ the ~~assumption that~~covenants ~~Concordia~~of ~~will~~the bedebt inagreements, ~~compliance~~they ~~with~~may ~~its~~require ~~debt~~waivers ~~covenants~~from ~~for~~their ~~the~~lenders ~~upcoming~~or ~~12-month~~additional ~~period. If~~equity ~~Concordia~~funding ~~would be~~ in ~~breach~~order ofto ~~any~~continue ofto ~~its~~present ~~debt~~financial statements ~~covenants~~under ~~during~~ the ~~next~~assumption 12that Concordia ~~months,~~will acontinue ~~major~~as ~~portion~~a ofgoing ~~its long-term debt would become due and payable~~concern.

These ~~unaudited interim~~ financial statements have been prepared inunder ~~accordance~~the ~~with~~assumption that the ~~recommendations~~group ~~issued~~will bybe ~~the~~successful ~~Swedish~~in ~~Accounting~~its ~~Council’s~~initiatives ~~recommendation~~and, ~~regarding~~consequently, ~~interim~~they ~~financial~~have been prepared ~~statements~~assuming that Concordia will continue as a going concern.

1615

Note 1. Net revenue and operating profit (loss) by segment

Revenue	~~December~~June 1, ~~2003~~2004 -– ~~February~~August 2931, 2004	~~December~~June 1, ~~2002~~2003 -– ~~February~~August 2831, 2003	March 1, ~~2003~~2004 -– ~~February~~August 2931, 2004	March 1, ~~2002~~2003 -– ~~February~~August 2831, 2003
CPTA – Sweden	~~884~~761	~~870~~781	31,~~469~~668	~~3407~~1,697
CPTA – Norway	98111	~~102~~81	~~359~~230	~~442~~180
CPTA – Finland	9893	9689	~~386~~195	~~394~~190
Total CPTA	~~1,080~~965	~~1,068~~951	42,~~214~~093	42,~~243~~067
Express	8197	7190	~~327~~176	~~295~~166
Interbus	2133	2531	~~110~~63	~~127~~63
Total bus operations	1,~~182~~095	1,~~164~~072	42,~~651~~332	42,~~665~~296
Other revenue and group elimination	2123	2531	~~110~~43	9359
Total revenue	1,~~203~~118	1,~~189~~103	42,~~761~~375	42,~~758~~355

Operating profit (loss) by segment, before overhead allocation.

Operating profit (loss)	~~December~~June 1, ~~2003~~2004 -– ~~February~~August 2931, 2004		~~December~~June 1, ~~2002~~2003 -– ~~February~~August 2831, 2003 ~~Reported~~		December 1, 2002 - February 28, 2003 Restated*
CPTA – Sweden	(~~104~~9	)	~~(183~~5	)	~~(77~~	)
CPTA – Norway	15		~~(29~~1	)	~~(15~~	)
CPTA – Finland	(106	)	(98	)	(9	)
Total CPTA	(~~113~~10	)	(~~221~~2	)	~~(101~~	)
Express	417		(414	)	3
Interbus	-24		(5	)	(1	)
Total Express and Interbus	221		(919	)	2
Total bus operations	~~(111~~11	)	~~(230~~17	)	~~(99~~	)
Gain of sale of fixed assets	—		—		—
Goodwill amortization	(12	)	(11	)
Goodwill amortization	(12	)	(11	)	(11	)
Head office items and others	(14	)	(18	)
Head office items and others	(6	)	89		(29	)
Total operating profit	(15	)	(12	)
Total operating profit	(129	)	(152	)	(139	)

Operating profit (loss)	March 1, ~~2003~~2004 -– ~~February~~August 2931, 2004		March 1, ~~2002~~2003 -– ~~February~~August 2831, 2003 ~~Reported~~		March 1, 2002 - February 28, 2003 Restated*
CPTA – Sweden	(5720	)	~~(115~~21	)	~~(18~~	)
CPTA – Norway	29		(231	)	~~(23~~	)
CPTA – Finland	(246	)	(2311	)	~~(23~~	)
Total CPTA	(7917	)	~~(161~~9	)	~~(64~~	)
Express	3119		2520		31
Interbus	46		46		8
Total Express and Interbus	3525		2926		39
Total bus operations	~~(44~~8	)	~~(132~~35	)	~~(25~~	)
Gain of sale of fixed assets	—		—		—
Goodwill amortization	(23	)	(22	)
Goodwill amortization	(45	)	(44	)	(44	)
Head office items and others	(28	)	(35	)
Head office items and others	(66	)	4		(103	)
Total operating profit	(43	)	(22	)
Total operating profit	(155	)	(172	)	(172	)

*) We have restated for fiscal 2003 the allocation of our operating lease charges so that only the depreciation element is included in the costs for each operating segment’s operating profit (or loss). We have also removed from each operating segment the head office costs that we had previously allocated to each one. These are now reported in a separate line item “Head office items and other”. In addition, we now allocate our gain or loss on the sale of assets by individual operating segment and no longer as a separate line item. These restatements affect the reported operating profit/(loss) for our operating segments for fiscal 2003; they do not affect the overall operating profit of the Concordia Group for each quarter.16

InNote ~~fiscal 2003, we had initially booked our loss on our sale of fixed assets in the fourth quarter as a year-end adjustment~~2. Interest Weexpense ~~have~~and ~~now~~similar restated this loss to report the loss in the period when the assets were sold. This restatement does not change our total operating loss figure for fiscal 2003. It does impact the operating profit/(loss) figure on a quarterly basis, however, by increasing the loss (or reducing the profit) for each of the first three quarters of fiscal 2003.items

MSEK	June 1, 2004 – August 31, 2004		June 1, 2003 – August 31, 2003		March 1, 2004 – August 31, 2004		March 1, 2003 – August 31, 2003
Interest cost payable	(70	)	(54	)	(139	)	(111	)
Amortization of deferred financing costs	(5	)	(4	)	(9	)	(9	)
Other financial charges	(1	)	(2	)	(2	)	(4	)
Foreign exchange gains/(losses)	(8	)	(12	)	25		(14	)
Total	(84	)	(72	)	(125	)	(138	)

~~Restated~~Note ~~operating~~3. Liabilities ~~profit~~to ~~(loss)~~credit byinstitutions ~~segment~~ and ~~quarter~~net ~~before overhead allocation for total fiscal year 2003~~indebtedness

Operating profit (loss)	March 1, 2002 - May 31, 2002 Restated		June 1, 2002 - August 30, 2002 Restated		Sept 1, 2002- Nov 30, 2002 Restated		Dec 1, 2002- Feb, 28 2003 Restated		Total year
MSEK	August 31, 2004		February 29, 2004
CPTA – Sweden	34		13		13		(78	)	(18	)
Euro 130 million - Senior Secured Notes 9,125	1,187		1,198
CPTA – Norway	(2	)	(6	)	0		(15	)	(23	)
Euro 160 million - Senior Subordinated Notes, 11%	1,461		1,475
CPTA – Finland	(2	)	(5	)	(6	)	(10	)	(23	)
Liabilities to credit institutions	2,648		2,673
Total CPTA	30		2		7		(103	)	(64	)
Other long-term liabilities	13		16
Express	7		14		6		3		30
Short term portion of finance lease obligations	7		7
Interbus	3		5		1		(1	)	8
Total debt	2,668		2,696
Total Express and Interbus	10		19		7		2		38
Less Cash and bank balance	(202	)	(346	)
Total bus operations	40		21		14		(101	)	(26	)
Net indebtedness	2,466		2,350
Gain of sale of fixed assets	—		—		—		—		—
Total debt	2,668		2,696
Goodwill amortization	(11	)	(11	)	(11	)	(11	)	(44	)
Short term portion of finance lease obligations	(7	)	(7	)
Head office items and others	(24	)	(24	)	(27	)	(27	)	(102	)
Total long term debt	2,661		2,689
Total operating profit	5		(14	)	(24	)	(139	)	(172	)

Note 24. ItemsOperating affecting comparability and other exceptional items*leases

MSEK	December 1, 2003 - February 29, 2004		December 1, 2002- February 28, 2003	March 1, 2003 - February 29, 2004	March 1, 2002 - February 28, 2003
Stockholm/Uppsala exceptional operating costs			18		85
Termination payment Departing MD	3		—		7
Exceptional Revenue relating to prior years	(15	)	—	—	(7	)
Provision for termination costs Gothenburg	6		25
Startup costs Scaraborg and Ostfold tender
Total adjustments reported	—		18	—	67
Gain on sale reversal SBC fleet revaluation	—		14	—	14
Provision for Future losses on contracts	60		25	60	15
Total adjustments restated			57		114

The Net Present values of the future lease payments for rentals are as follows:

Note 3. Interest expense and similar items

MSEK	August 31, 2004	February 29, 2004
Net present value of future lease payments
- Vehicles	853	905
- Real estate and other	49	52
Total	902	957

MSEK	December 1, 2003 - February 29, 2004		December 1, 2002 - February 28, 2003		March 1, 2003 - February 29, 2004		March 1, 2002 - February 30, 2003
Interest cost payable	(52	)	(56	)	(237	)	(234	)
Amortization of deferred financing costs	(4	)	(4	)	(41	)	(18	)
Other financial charges	(3	)	(4	)	(13	)	(11	)
Foreign exchange gains/(losses)	32		(9	)	(24	)	(2	)
Total	(151	)	(73	)	(315	)	(265	)

Note 5. Fair value of financial instruments

Does not add up !!

Note 4. Liabilities to credit institutions and net indebtedness

MSEK	February 29, 2004		February 28, 2003
Syndicated bank facility, STIBOR/EURIBOR	—		975
Senior Subordinated Notes, 11%	1,441		1,460
Liabilities to credit institutions	2,391		2,435
Other long-term liabilities	18		21
Short term portion of finance lease obligation	6		7
Total debt	2,415		2,463
Less Cash and bank balance	(351	)	(199	)
Net indebtedness	2,191		2,264
Total debt	2,415		2,463
Short term portion of long term debt .. not possible – only refer to fin lease	(262	)	(—	)
Total long term debt	2,153		2,463

* Exceptional items are those, which the management believes, are non-recurring and have a non-operational nature and are necessary to explain the development of operating performance. These may not meet Swedish or US GAAP definitions of exceptional and extraordinary items.

Note 5. Operating leases

The net present values of the future lease payments for rentals are as follows:

MSEK	February 29, 2004	February 28, 2003
Net present value of future lease payments
- Vehicles	905	945
- Real estate and other	52	58
Total	957	1,003

Note 6. Fair value of financial instruments

Fuel hedge contracts

The Concordia Bus ~~Group~~ Group is exposed to commodity price risk through its fuel usage. Management ~~actively~~ actively tries to minimize the negative effects of fluctuations in the market price. During the quarter ended ~~February~~August 2931, 2004, 1724% of Concordia’s fuel usage was hedged through diesel swaps at a fixed price for the coming 12 6 months. The hedge contracts expire February 28, 2005.

Interest/currency hedges

~~Certain of~~ Concordia’s ~~borrowings~~ ~~are~~lease debt is on a floating rate. Management has made a decision to actively try to minimize the risk of interest rate fluctuations by entering into interest rate swaps and interest rate caps, which gives Concordia a larger portion of fixed interest rate arrangements.

The Company is also exposed to currency fluctuations, primarily as an effect of loans denominated in foreign currencies. Management has made a conscious decision to try to minimize the impact of currency fluctuations on cash payments related to foreign currencies and has therefore entered into currency collar arrangements. As of ~~February~~August 2931, 2004, 50% of the ~~interest payments on the senior notes of €160 million were hedged for the coming 2½ years.~~

~~Note 7. Pledged assets and contingent liabilities~~17

MSEK	February 29, 2004	February 28, 2003
Pledged shares in subsidiaries	741	973
Floating charge certificates	120	117
Pledged assets	1,351	1,757
Guarantees and other contingent liabilities	45	1
Conditional shareholder’s contribution	648	648
Total	3,116	3,496

interest payments on the senior notes of €160 million were hedged for the coming 2 years. The coming interest payments for the €130 million on the senior secured notes are not hedged.

TheNote following6. securitiesPledged exist asassets ofand Februarycontingent 29, 2004:liabilities

The company has pledged the shares of Concordia Bus Nordic AB;

MSEK	August 31, 2004	February 29, 2004
Pledged shares in subsidiaries	649	709
Floating charge certificates	119	119
Pledged assets	1,270	1,410
Guarantees and other contingent liabilities	22	22
Conditional shareholder’s contribution	648	648
Total	2,708	2,908

As a result of the refinancing in Concordia Bus Nordic AB ~~has~~in January ~~pledged~~2004, the ~~shares~~security package has been renegotiated. The following securities exist as of August 31, 2004:

~~Swebus~~Concordia Bus Nordic Holding AB has pledged the shares of Concordia Bus ~~Fastigheter~~Nordic AB,;

~~Swebus~~ Concordia Bus Nordic AB, has pledged the shares of

~~Concordia Bus~~Swebus ~~Finland~~Fastigheter Oy AB,

Swebus ~~Bus~~ Co AB;,

~~Ingenior M.O.~~Concordia ~~Schoyens~~Bus ~~Bilcentraler~~Finland ASOy AB,

19Swebus Busco AB;

~~Swebus~~Ingenior ~~Fastigheter~~M.O. ABSchoyens ~~has pledged~~Bilcentraler ~~the shares of~~AS

~~Alpus~~Swebus Express AB,

~~Enköping-Bålsta Fastighets~~Interbus AB~~, and~~

~~Malmfältens Omnibus~~Swebus Fastigheter AB; has pledged the shares of

~~Swebus~~Alpus ~~Busco~~ AB ~~and Ingenior M.O. Schoyens Bilcentraler AS has granted pledge over its buses in aggregate amount of SEK 1~~,~~303,892,617;~~

~~Concordia~~Enköping-Bålsta ~~Bus~~Fastighets ~~Finland Oy~~ AB ~~has granted pledge over floating charge certificates in an aggregate amount of EUR 1~~,~~316,138.~~ and

~~Swebus~~Malmfältens ABOmnibus ~~has granted pledge over floating charge certificates in an aggregate amount of SEK 100,000,000~~AB;

~~Alpus~~Swebus Busco AB has granted pledge over ~~floating~~ ~~charge~~its ~~certificates~~buses in an aggregate amount of SEK ~~600~~1,~~000;~~159,507,938

~~Enköping-Bålsta~~Ingenior ~~Fastighets~~M.O. ~~AB has~~Schoyens Bilcentraler AS granted pledge over ~~floating~~its ~~charge~~assets ~~certificates~~ in aggregate amount of SEK 2 110,~~400~~901,~~000~~716;

~~Malmfältens~~Concordia ~~Omnibus~~Bus Finland Oy AB has granted pledge over floating charge certificates in an aggregate amount of ~~SEK 2~~EUR 1,~~500~~194,134 ~~000~~;

~~Note~~Swebus 8.AB ~~Equity~~has granted pledge over floating charge certificates in an aggregate amount of SEK 100,000,000;

MSEK	Restricted equity	Unrestricted equity		Total
Opening balance March 1, 2003	28	50		78
Change in cumulative translation adjustment	-29	29		—
Net loss for the period	—	(409	)	(409	)
Ending balance February 29, 2004	-1	(329	)	(330	)

Alpus AB has granted pledge over floating charge certificates in an aggregate amount of SEK 600,000;

20Enköping-Bålsta Fastighets AB has granted pledge over floating charge certificates in aggregate amount of SEK 2,400,000;

Malmfältens Omnibus AB has granted pledge over floating charge certificates in an aggregate amount of SEK 2,500 000.

Note 7. Equity

MSEK	Restricted equity	Unrestricted equity		Total equity
Opening balance March 1, 2004, before change of accounting principles	1	(331	)	(330	)
Effect of change in accounting principles	—	7		7
Effect of change in accounting principles, tax effect	—	(2	)	(2	)
Opening balance March 1, 2004, after change of accounting principles	1	(326	)	(325	)
Net loss for the period	—	(168	)	(168	)
Change in cumulative translation adjustment	—	9		9
Ending balance August 31, 2004	1	(485	)	(484	)

Note 8. Cash and cash equivalents

MSEK	August 31, 2004	February 29, 2004
Cash and bank balances	152	292
Restricted cash*	50	54
Total	202	346

* Restricted cash has been deposited in order to obtain bank guarantees. The bank guarantees have been issued as securities for Concordia Bus Nordic’s pension debt and SBC’s obligations in three CPTA contracts in Oslo

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Concordia Bus AB (publ)
	(Registrant)

Date: September 28, 2004	By:	/s/ Ragnar Norbak
		Ragnar Norbak Chief Executive Officer

Filing Compare · CONCORDIA BUS AB PUBL