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

~~Pursuant~~For tothe fiscal ~~Rule~~third ~~13a-16~~quarter orSeptember ~~15d-16 of the~~1, ~~Securities~~2004 ~~Exchange~~- ~~Act~~November of30, ~~1934~~2004

For the fiscal second quarter June 1, 2004 - August 31, 2004

and

~~Half-year~~Nine months period March 1, 2004 - ~~August~~November 3130, 2004

Concordia Bus AB (publ)

(Translation of registrant’s name into English)

Solna Strandvag 78, 17154 Solna, Sweden (Address of principal executive offices)

(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

Form 40-F

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

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

CONCORDIA BUS AB

STOCKHOLM, SWEDEN

~~SECOND~~ THIRD QUARTER ~~JUNE~~SEPTEMBER 1, 2004 – ~~AUGUST 31~~NOVEMBER 30, 2004

AND

~~HALF~~NINE MONTHS ~~YEAR~~PERIOD MARCH 1, 2004 – ~~AUGUST~~NOVEMBER 3130, 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 Unaudited consolidated interim statements of operations for the three months ended ~~August~~November 3130, 2004 and ~~August~~November 3130, 2003 Unaudited consolidated interim statements of operations for the ~~half-year~~nine months ended ~~August~~November 3130, 2004 and ~~August~~November 3130, 2003 Unaudited interim consolidated balance sheets as of ~~August~~November 3130, 2004 and February 29, 2004 Unaudited consolidated interim cash flow statements for the ~~half-year~~nine months ended ~~August~~November 3130, 2004 and ~~August 31,~~ 2003 Notes to unaudited consolidated interim financial statements

CONCORDIA BUS AB (PUBL)

~~HALF-YEAR~~THIRD QUARTER ~~REPORT~~AND NINE MONTHS PERIOD ENDED REPORT

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

~~Concordia~~AND ~~Bus~~RESULTS ABOF (“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.OPERATIONS

~~You~~Concordia ~~should~~Bus ~~read~~AB ~~the~~(“Concordia” ~~following~~or ~~discussion~~the in“Company”) ~~conjunction~~hereby ~~with~~submits the unaudited interim financial statements ~~of Concordia~~for ~~included~~the inthree-month ~~this~~period ~~quarterly~~ended ~~report~~November ~~starting~~30, ~~on page 10~~2004. The ~~financial~~Company ~~statements of~~is ~~Concordia~~a ~~are~~wholly ~~prepared~~owned subsidiary inof ~~accordance~~Concordia ~~with~~Bus ~~accounting~~Holding ~~principles generally~~AB (Reg. No. 556574-8240, ~~accepted~~domiciled in ~~Sweden (“Swedish GAAP”~~Stockholm), which ~~differ~~is ina ~~various~~part ~~respects~~of ~~from accounting~~the ~~principles~~group ~~generally~~of ~~accepted~~which inConcordia ~~the~~Bus ~~United States~~ BV (“UReg.S. ~~GAAP”)~~No. ~~The~~ ~~financial~~103040697, ~~year-end~~Dos ~~for Concordia is the last day of February~~No. ~~Unless otherwise~~292558KvK, ~~specified~~domiciled in ~~this discussion~~Amsterdam, ~~reference~~The Netherlands) ~~to a particular year~~ is to the ~~financial~~ultimate ~~year~~parent ~~ended~~company. ~~the~~All ~~last~~figures ~~day~~are ofexpressed ~~February~~in ~~of that year (“fiscal 2005”~~millions ~~for the year ending February 28, 2005). The end~~ of ~~the~~SEK ~~first~~if ~~financial~~not ~~quarter for~~otherwise ~~Concordia is May 31 of each year~~indicated.

You should read the following discussion in conjunction with the financial statements of Concordia included in this quarterly report starting on page 11. The financial statements of Concordia are prepared in accordance with accounting principles generally accepted in Sweden (“Swedish GAAP”), which differ in various respects from accounting principles generally accepted in the United States (“U.S. GAAP”). The financial year-end for Concordia is the last day of February. Unless otherwise specified in this discussion, reference to a particular year is to the financial year ended the last day of February of that year (“fiscal 2005” for the year ending February 28, 2005). The end of the third financial quarter for Concordia is November 30 of each year.

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 except that the Company as of March 1, 2004 has revised its accounting principle for pensions. This revision was in accordance with new accounting recommendations under Swedish GAAP. In accordance with Swedish GAAP, the revision has been reflected through a restatement of the historical financial results. For an explanation of the impact, see “notes to unaudited consolidated interim financial statements”.

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:

SecondThird quarter ended AugustNovember 3130, 2004 compared to the secondthird quarter ended AugustNovember 3130, 2003

	2004				2003
	SEK million		%		SEK million		%
Revenues	1,~~118~~224		100.0	%	1,~~103~~203		100.0	%
Operating profit (loss)	(1514	)	(1.41	)%	(123	)	(10.13	)%
EBITDAR(1)	~~175~~181		1514.68	%	~~172~~190		15.68	%
Net loss	(9932	)	(82.96	)%	(5025	)	(42.51	)%

HalfNine-yearmonth period ended AugustNovember 3130, 2004 compared to the halfnine-yearmonth period ended AugustNovember 3130, 2003

	2004				2003
	SEK million		%		SEK million		%
Revenues	23,~~375~~599		100.0	%	23,~~355~~558		100.0	%
Operating profit (loss)	(4357	)	(1.86	)%	(2225	)	(0.97	)%
EBITDAR(1)	~~333~~514		14.03	%	~~344~~534		1415.60	%
Net loss	(~~168~~200	)	(75.15	)%	(~~111~~136	)	(43.78	)%

(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.

3itself provides no grounds for comparison of Concordia with other companies. EBITDAR has been derived from amounts found under “Consolidated statement of operations” on Page 11 and 12 of this quarterly report, prepared under Swedish GAAP.

~~Second~~Third quarter ended ~~August~~November 3130, 2004 compared to the ~~second~~ third quarter ended ~~August~~November 3130, 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, except for the section “Liquidity and capital resources” which provides analysis between the respective year to date periods~~, which for the first quarter are the same~~.

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 ~~Concordia~~Swebus provides at its depots to third parties and sales of diesel fuel.

Revenues ~~increased~~increasead by SEK 1521 million, or ~~1.4~~ 2%, from SEK 1,~~103~~203 million for the ~~three~~quarter ~~months~~ ended ~~August 31~~November 30, 2003 to SEK 1,~~118~~224 million for the quarter ended ~~August~~November 3130, 2004.

Revenues from the provision of bus services for local public transportation authorities increased by SEK 1418 million, or ~~1.5~~2%, from SEK ~~951~~ 1,067 million for the three months ended November ~~August 31~~30, 2003 to SEK ~~965~~1,085 million for the three months ended ~~August~~November 3130, 2004. Our increase in revenue is principally due to our winning of new contracts, which provided an increase of SEK 96111 million which was offset by the impact from lost contracts of SEK 74104 million and a strike in Finland in November that caused a loss of revenues of SEK 13 million. In addition, the net impact from the volume and price changes on the existing contracts was ~~lower~~ higher by SEK 824 million.

Revenues from express bus services ~~increased~~remained byconstant ~~SEK~~at ~~7 million, or 8%, from~~ SEK 9081 million for the three months ended November ~~August 31~~30, 2003 toand ~~SEK 97 million~~ for the three months ended ~~August~~ 31November 30, 2004. ~~This~~During ~~increase~~the first isthree ~~largely~~months ~~due~~there towas aan ~~higher~~increase ~~yield~~in ~~from~~ passenger ~~tickets~~ ~~marginal~~traffic of SEK 3 million, which ~~and~~was ~~increase~~offset inby ~~passenger~~decreased ~~traffic~~yiled offrom ~~SEK~~passenger ~~2 million~~tickets ~~and~~marginal ~~an increase~~ of ~~prices of~~ SEK 2 3 million.

Revenues from coach hire services increased by SEK 26 million or 623% from SEK 3126 million for the three months ended ~~August~~November 3130, 2003 to SEK 3332 million for the three months ended ~~August~~November 3130, 2004. ~~This~~The increase is due to ~~increased~~the ~~revenues~~acquisition ~~from~~of ~~sales~~FO-resor of ~~diesel~~ a total of ~~SEK~~4.8 1MSEK ~~million,~~ and anthe ~~increase~~acquisition of ~~prices~~Marstrand Hermansby Buss of ~~SEK~~a total of 1.1 MSEK. ~~million~~The remaning increase is due to price increases.

Other revenues amounted to SEK 2326 million for the ~~three~~quarter ~~months~~ ended ~~August~~November 3130, 2004 and SEK 3129 million for the three months ended ~~August~~November 3130, 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 ~~real estate,~~ buses ~~and~~ and other assets held by Concordia. Loss on sale of fixed assets was SEK ~~1 million~~3 million for the three months ended ~~August~~November 3130, 2004, ~~compared~~a todecrease of SEK 5 million from a gain on sale of fixed assets of SEK 2 million for the three months ended November ~~August 31~~30, 2003. ~~The~~ ~~loss~~Numbers isof abuses ~~result~~sold ofduring ~~sale~~the ofquarter ~~equipment~~were ~~from~~88 ~~the~~units ~~closed~~on which ~~down~~we ~~depot~~realized SEK 7 million in ~~Gothenburg~~ cash.

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. andOperating costs also consist of operating lease charges. Operating costs increased by SEK 2136 million, or 23%, from SEK 1,026112 million for the three months ended AugustNovember 3130, 2003 to SEK 1,047148 million for the three months ended AugustNovember 3130, 2004. This increase is due to a number of factors, which are explained below.

Additional factors

~~There~~Fuel, ~~has~~tires ~~been~~and aother ~~2% decrease~~consumable ~~in personnel~~ costs, increased by SEK 1216 million or 7%, to SEK ~~592~~254 million, for the three months ended ~~August~~November 3130, 2004 from SEK 238 ~~604~~ million for the three months ended ~~August~~November 3130, 2003. ~~The~~This ~~decreased~~increase ~~costs~~is primarily ~~are partly~~ due to ~~lost~~increased ~~contracts~~fuel ~~in the Gothenburg area of SEK 11 million and decreased pension~~ costs of SEK 614 ~~as a result of a new pension agreement and productivity improvements of SEK 5~~ million. ~~This~~Our ~~was~~average ~~offset~~fuel bycost for anthe ~~effective~~three ~~pay~~months ~~increase of 4.7% resulting~~ in ~~increased~~ ~~salary~~Sweden ~~costs~~was of SEK ~~12 million~~6.46 per liter

Incompared ~~addition, fuel, tires and other consumable costs increased by 10% or SEK 19 million,~~ to ~~SEK~~5.43 ~~213 million~~per ~~for~~liter ~~the~~in ~~three~~Sweden ~~months ended August 31, 2004 from SEK 194 million~~ for the ~~three~~ ~~months~~same ~~ended~~period ~~August~~last ~~31, 2003~~year. The reamining increase ofis ~~SEK 19 million was~~ due to an ~~increase~~increased ~~in fuel~~ costs offor ~~SEK~~washing ~~11million,~~and ~~increased~~cleaning ~~maintenance costs~~ of SEK 7 2 million ~~and increase~~.

Personnel costs remained constant at SEK 643 million, for the three months ended November 30, 2004 as for the three months ended November 30, 2003. This is mainly a result from a reduction in number of drivers due to lost contracts, which resulted in lower wage costs of SEK 21 million. The strike in Finland resulted in lower wage costs of SEK 6 million. This decrease was partly offset by an increase in wages resulting from an effective increase in salary of 4.7% or SEK 25 million.

inIn ~~cleaning~~addition other external costs ofincreased by SEK 19 million, ~~due~~ to ~~higher~~SEK ~~bus~~143 million ~~usage.~~for ~~Our~~the ~~average fuel~~three ~~price~~months ~~for~~ended November 30, 2004 from SEK 134 million for the three months ended November 30, 2003. This is mainly due to increased damage costs of SEK 4 million due to the earlier winter climate in Sweden ~~was~~compared to previous year and also due to increased professional fees of SEK 63 million.01 The ~~per~~remaining ~~liter~~increase ~~compared~~is due to an increase of other operational costs of SEK ~~5.21~~7 ~~per~~million ~~liter~~which inwere ~~Sweden~~partly ~~for~~offset ~~the~~by ~~same~~release ~~three~~of ~~months~~provision ~~last~~of ~~year~~loss contracts of SEK 5 million.

~~Other~~Operating ~~external~~lease ~~costs~~charges increased 1% by SEK 211 million, to SEK ~~137~~108 million for the three months ended ~~August~~November 3130, 2004 from SEK ~~135~~97 million for the three months ended ~~August~~November 3130, 2003. ~~The~~This increase was ~~largely~~principally ~~due~~a toresult of increased ~~marketing~~use ~~and~~of ~~sales~~operating ~~costs~~leases for buses. The total number of buses under operating leases was 1,448 as of ~~SEK~~November 130, ~~million~~2004, ~~and~~compared ~~increased~~to ~~professional~~1,301 ~~fees~~as of ~~SEK~~November 130, ~~million~~2003.

Operating lease charges increased by SEK 12 million to SEK 105 million for the three months ended August 31, 2004 from SEK 93 million for the three months ended August 31, 2003. This increase was principally a result of increased number of operational lease buses we are utilizing under operating leases. The total number of buses under operating leases was 1,398 as of August 31, 2004 compared to 1,262 as of August 31, 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 resulting from acquisitions of bus operations is included. Depreciation and amortization costs decreased by SEK 9 million from SEK 96 million for the three months ended November 30, 2003 to SEK 87 million for three months ended November 30, 2004, principally as a result of a reduction in the number of buses in the fleet that we own. Total goodwill amortization was SEK 11 million for both periods.

DepreciationOperating and amortizationprofit/ 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.loss

Operating ~~Profit~~loss increased by SEK 11 million from a loss of SEK 3 million for the three months ended November 30, 2003 to a loss of SEK 14 million for the three months ended November 30, 2004.

Operating ~~loss~~profit ~~increased~~from bus operations for public authorities decreased by SEK 320 million from aan ~~loss~~operating profit of SEK 1225 million for the three months ended ~~August~~ 31November 30, 2003, to aan operating ~~loss~~profit of SEK 155 million for the three months ended ~~August 31~~November 30, 2004, largely as a result of higher fuel costs and due to the strike in Finland in November.

Operating ~~loss~~profit from express bus ~~operations~~services ~~for~~remained ~~public~~stable ~~authorities~~at ~~increased by~~ SEK 87 million ~~from an operating loss of SEK 2 million~~ for the three months ended ~~August~~November 3130, ~~2003~~2004 toas acompared ~~loss~~to ~~of SEK 10 million for~~ the three months ended ~~August~~ ~~31,~~November ~~2004~~30, ~~largely as a result of higher fuel costs~~ 2003.

Operating profit from ~~Express~~coach ~~Bus~~hire services ~~increased~~was by SEK 32 million ~~to SEK 17 million~~ for the three months ended ~~August~~November 3130, 2004, ~~from~~compared to an operating profit of SEK 140 million for the three months ~~ended~~ ~~August~~ended 31November 30, 2003.

~~Operating~~Head ~~profit~~office ~~from~~items and ~~coach~~others ~~hire~~decreased ~~services~~by ~~was~~SEK 7 million from SEK 424 million for the three months ended ~~August~~November 3130, ~~2004~~ 2003, ~~compared~~ to SEK 517 million for the three months ended ~~August 31~~November 30, ~~2003~~2004.

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~~decreased by SEK 127 million to net financial expenses of SEK 8318 million for the three months ended ~~August~~November 3130, 2004, ~~from~~compared ~~SEK~~to 71net financial expenses of SEK 25 million for the three months ended ~~August~~November 3130, 2003.

This result can be primarily attributed to a higher ~~interest~~foreign ~~charges~~exchange ofgain by SEK 1624 million ~~due~~from toa ~~increased~~foreign ~~borrowing~~exchange ~~and~~gain ~~higher~~of ~~interest~~SEK ~~rates.~~32 ~~This~~million ~~was~~for ~~offset~~the bythree ~~lower~~months ~~foreign exchange~~ended ~~loss~~November by30, 2003 ~~SEK~~to ~~4 million from~~ a foreign exchange ~~loss~~gain atof SEK 856 million for the three months ended November ~~August 31~~30, 2004. ~~compared~~This towas aoffset ~~foreign~~by ~~exchange~~higher ~~loss~~ interest charges of SEK 1215 million due ~~for~~to ~~the~~increased ~~three~~borrowing ~~months~~and ~~ended~~higher ~~May~~interest ~~31,~~rates ~~2003~~and decreased interest income of SEK 2 million.

Taxes

The standard rate of taxation in Sweden is 28%. Concordia Bus has not paid any taxes for the period ended November 30, 2004. The effective tax rate for the ~~year~~three months ended ~~August~~November 3130, 2004 was 0%. ~~The~~This ~~difference~~effective ~~in the~~ tax rate resxults isfrom ~~due~~the ~~to a~~ amortization of goodwill ~~of 3~~(10%,) and valuation ~~allowances~~allowance of net -operating losses ~~of 25~~(18%).

Trend Information

During the quarter ended November ~~Aug 31~~30, 2004, ~~342~~665 buses were placed for tender, of which we submitted bids for ~~232~~422. Of these ~~232~~422, we already operate ~~156~~111 buses. We have re-won and retained 12167 buses, ~~out of which we previously operated 9,~~ and lost 682 buses during the quarter all relating to tenders submitted during ~~previous~~the previous quarter.

We envisage bidding for a further ~~560~~207 units this year, of ~~614~~249 units available. Of the ~~560~~207, Concordia currently operates ~~166~~41 units.

HalfNine-yearmonth period ended AugustNovember 3130, 2004 compared to the halfnine-yearmonth period ended AugustNovember 3130, 2003

The following section provides an analysis of our results of operations between the actual numbers for the ~~half-year~~nine month period March 1 – ~~August~~November 3130, 2004 as compared with the ~~half-year~~nine month period March 1 – ~~August~~November 3130, 2003.

Revenues

Revenues increased SEK 2041 million, or 1%, from SEK 23,~~355~~558 million for the ~~half-year~~nine months ended ~~August~~November 3130, ~~2003~~ 2003 to SEK 23,~~375~~599 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2004.

Revenues from the provision of bus services for local public transportation authorities increased by SEK 2644 million, or 1%, from SEK 23,~~067~~134 million for the ~~half-year~~nine ~~ended~~months ~~August~~ended 31November 30, 2003 to SEK 23,~~093~~178 million for the ~~half~~nine-~~year~~month ended ~~August~~November 3130, 2004.

The increase in revenue is principally due to our winning of new contracts, which provided an increase of SEK ~~209~~320 million which was offset by the impact from lost contracts of SEK 275 million and a and a strike in Finland ~~171~~in November that caused a loss of revenues of SEK 13 million. In addition, the net impact from the volume and price changes on the existing contracts was higer ~~lower~~ by SEK 12 million.

Revenues from express bus services increased by SEK 1011 million, or 64%, from SEK ~~166~~246 million for the nine ~~half-year~~months ended ~~August~~November 3130, 2003 to SEK ~~176~~257 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2004. ~~The~~This ~~revenue~~ increase ~~derives~~is ~~primarily~~largely ~~from~~due to a higher yield ~~from~~ from passenger tickets ~~marginal~~of SEK 6 million, an increase in passenger traffic of SEK 2 million and an increase in ~~passengers~~prices ~~carried~~of SEK 3 million.

Revenues from coach hire services ~~remained~~increased ~~constant~~by atSEK 6 million, or 7%, from SEK 6389 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2003 ~~and~~to SEK 95 million for the ~~half-year~~nine months ended November ~~August 31~~30, 2004. The revenue increase is due to the acquisition of the companies FO-resor of a total of 4.8 million and the acquisition of Marstrand Hermansby Buss of a total of SEK 1.1 million.

Other revenues ~~amounted~~decreased toby SEK 5920 million from SEK 89 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2003 ~~and~~to SEK 4369 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2004. Other revenues largely consist of sales of diesel fuel and maintenance and repair services to third parties.

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~~was ~~from a gain of~~ SEK 23 million for the ~~half-year~~nine months ended ~~August 31~~November 30, ~~2003~~2004 compared to ~~a gain of~~ SEK 64 million for the ~~half-year~~nine months ended ~~August~~November 3130, ~~2004~~2003. ~~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 5490 million, or 23%, from SEK 23,~~202~~314 ~~million~~ for the ~~half-year~~nine months ended ~~August~~November 3130, 2003 to SEK 23,~~256 million for the half-year ended August 31, 2004. This increase is due to a number of factors, which are outlined below.~~404

~~Additional~~million for the nine months ended November 30, 2004. This increase is due to a number of factors:, which are explained below.

~~There~~Additional ~~has~~details ~~been~~on ~~a 1%~~Operating 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.Costs:

Fuel, tires and other consumable costs have increased by SEK 42 million or 6% to SEK 724 million for the nine months ended November 30, 2004 from SEK 682 million for the nine months ended November 30, 2003. The increase is largely due to a high diesel price during the second and third quarter resulting in increased fuel costs of SEK 23 million. The increase is also due to higher maintenance costs in the first two quarters of total SEK 15 million. The remaining increase is due to increased costs of washing and cleaning by SEK 4 million.

~~In addition,~~Personnel ~~fuel, tires and other consumable~~ costs ~~have~~ increased by SEK 26 10 million or 60.5% to SEK ~~470~~1,941 million for the ~~half-year~~nine months ended November ~~August 31~~30, 2004 ~~from~~ compared to SEK ~~444~~1,931 million for the ~~half-year~~nine months ended November ~~August 31~~30, 2003,. ~~largely~~The increase of SEK 10 million is due to ~~higher~~an effective ~~maintenance~~increase ~~costs~~in salary of 4.7% or SEK 1565 million. ~~and~~This ~~higher~~was ~~fuel~~partly offset by decreased cost due to lost contracts of SEK 32 million and decreased pension costs of SEK 915 million due to ~~increased~~a ~~fuel~~new ~~prices~~pension agreement, and productivity gains in Stockholm of SEK 8 million.

Operating lease charges increased by SEK 1930 million, or by 10%, tofrom SEK ~~208~~286 ~~million~~ for the nine ~~half-year~~months ended ~~August~~November 3130, ~~2004~~2003 ~~from~~to SEK ~~189~~316 ~~million~~ for the ~~half-year~~nine months ended ~~August~~ 31November 30, ~~2003~~2004. This increase was principally a result of our increased use of operating leases for buses. ~~Total~~The total number of buses under operating leases was 1,~~398~~448 as of ~~August~~November 3130, 2004, compared to 1,~~262~~301 as of ~~August~~November 3130, 2003.

Other external costs ~~decreased~~increased by SEK 18 million to SEK ~~280~~423 million for the ~~half-year~~nine ~~ended~~months ~~August~~ended 31November 30, 2004 from SEK ~~281~~415 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2003. The ~~decrease~~ increase is ~~mainly~~ due to ~~decreased~~increased ~~damage~~professional ~~costs~~fees of SEK 85 million, increased subcontractors costs of SEK 6 million. This was offset by decreased ~~increased~~facility ~~subcontracting~~ costs of SEK 72 million and a reduction in insurance costs of SEK 1 million.

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 918 million, or 57%, from ~~SEK~~ ~~177~~SEK 273 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2003 to SEK ~~168~~255 million for the ~~half-year~~ nine months ended ~~August~~November 3130, 2004 principally as a result of ~~our planned~~the ~~reduction~~shift intowards ~~the~~increased ~~number~~operational leasing of buses ~~in our fleet that we own~~ and ~~our~~away ~~increased~~from ~~use of operating leases~~ownership. Total goodwill amortization was SEK 2334 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2004, compared to SEK 2233 million for the ~~half year~~nine months ended ~~August~~November 3130, 2003. ~~Number of owned units as of August 31, 2004 was 2,477.~~

Operating Profitprofit/ loss

Operating loss was SEK 4357 million for the ~~half-year~~nine months ended ~~August~~November 3130, 2004, compared to an operating ~~loss~~ loss of SEK 2225 million for the ~~half-year~~nine ~~ended~~months ~~August 31, 2003. Operating loss from bus operations for local public transportation authorities was SEK 17 million for the half-year~~ ended ~~August~~November 3130, ~~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 higher maintenance and fuel costs~~.

Operating ~~profit~~loss from ~~express~~ bus operations ~~services~~for ~~decreased~~local bypublic ~~SEK~~transportation 1authorities ~~million~~was to SEK 1912 million for ~~the~~ ~~half-year~~the nine months ended ~~August~~November 3130, 2004, compared to ~~SEK~~an 20operating ~~million for the half-year ended August 31, 2003. Operating~~ profit ~~from coach hire services~~ of SEK 6 35 million for the ~~half-year~~nine ~~ended~~months ~~August 31, 2004 remained constant with the half-year~~ ended ~~August~~November 3130, ~~2004. Head office items and others was SEK 28 million for the half-year ended August 31~~2003, ~~2004~~mainly ~~compared~~due to ~~SEK 35 million for~~higher ~~the~~fuel ~~half-year~~costs ~~ended~~and ~~August~~increased ~~31,~~operating ~~2003~~lease charges.

Operating profit from express bus services decreased by SEK 1 million to SEK 26 million for the nine months ended November 30, 2004 compared to SEK 27 million for the nine months ended November 30, 2003.

Operating profit from coach hire services increased by SEK 2 million to SEK 8 million for the nine months ended November 30, 2004 compared to SEK 6 million for the nine months ended November 30, 2003.

Head office costs and other items decreased from SEK 60 million for the nine months ended November 30, 2003, to SEK 45 million for the nine months ended November 30, 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 ~~(net)~~ decreased by SEK 1118 million from a net financial expense of SEK 135 million for the half-year ended August 31, 2003 to SEK 124 million for the half-year ended August 31, 2004, due to higher interest costs of SEK 28 million, which was offset by increased foreign exchange gain of SEK 39 million.

financial income and expense of SEK 160 million for the nine months ended November 30, 2003 to SEK 142 million for the nine months ended November 30, 2004. This decrease was due to increased foreign exchange gains of SEK 64 million and lower other financial charges of SEK 1 million, which was offset by higher interest costs of SEK 45 million and decreased interest income of SEK 2 million.

Taxes

The standard rate of taxation in Sweden is 28%. Concordia Bus did not pay any taxes for the nine months ended November 30, 2004. The effective tax rate for the ~~half-year~~nine months ended ~~August~~ 31November 30, 2004 was 0negative 1%. ~~The~~This ~~difference~~effective ~~to the~~ tax rate isresulted ~~due~~from to amortization of of goodwill (5%) and an adjustment of 4deferred tax asset for tax loss carry-forward (1%,) and valuation allowance of net operating losses ~~of 24~~(23%).

Trend Information

During the first ~~half-year~~ nine months ended ~~August~~November 3130, 2004, ~~605~~we ~~buses~~have ~~were~~submitted ~~placed~~tenders for ~~tender, of which we~~ ~~submitted~~888 ~~bids~~buses ~~for~~out ~~465.~~of Ofthe ~~these 465~~1,270 ~~we already operate 291~~ buses. Wethat ~~have re-won~~were ~~and~~open ~~retained~~for 29competitive ~~buses~~tenders, ~~out~~which included ofcontracts ~~which~~for routes where we ~~previously~~already operated ~~21,~~413 ~~and~~buses. ~~lost~~Of these 888 ~~114~~units, ~~buses.~~results ~~The~~for ~~114~~590 ~~buses~~units ~~lost~~have ~~mainly~~been ~~comprise~~announced. aWe ~~phase~~have 2retained ~~tender~~85 inbuses ~~Vantaa,~~out ~~Finland~~ of 60the 302 buses ~~and~~we aoperated ~~bus~~and ~~tender~~won in111 ~~Helsingborg~~from ofour ~~52 buses~~competitors. ~~This~~We ~~provides~~currently usawait ~~with~~results on a ~~net~~further ~~renewal~~298 ~~rate~~units of ~~41%~~which toConcordia ~~date~~operates ~~based~~111 ~~on our number of buses under operation~~units.

Liquidity and Capital Resources

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

The outstanding amount of the senior subordinated notes as of ~~August~~November 3130, 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~~November 3130, 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.

As of ~~August~~November 3130, 2004 Concordia had total net indebtedness of SEK 2,~~466~~401 million after the deduction of cash balance of SEK ~~202~~206 million. The interest expense for the three months ended ~~August~~November 3130, 2004 was SEK 7067 million.

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~~swaps.

Net cash used by operating activities was negative SEK 93 67 million for the ~~six~~ nine months ended ~~August~~November 3130, 2004, compared to positive cash flow of SEK 17 63 million for the ~~six~~nine months ended ~~August~~November 3130, 2003, the difference is mainly due to higher interest payments of SEK 2930 million as a result of ~~refinancing~~ refinancing, and change in working capital of SEK 3744 million. We also had a ~~retroactive~~ retroactive compensation from the Stockholm CPTA in May 2003 of SEK 2328 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~~which iswas approximately SEK 15 15 million for the first ~~six~~nine months. Added to this we have increased the stock by SEK 7 million.

Net capex was SEK 4766 million for the ~~six~~nine months ended ~~August~~ 31November 30, 2004. Investments in tangible fixed ~~asset~~assets were SEK 7699 million for the ~~six~~nine months ended ~~August~~November 3130, 2004, compared to SEK 1022 million for the ~~three~~ nine months ended November ~~August 31~~30, 2003. Of the total capital expenditure SEK 29 million is 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~~ have purchased and sold during the first ~~six~~nine months. SEK 6 million are attributable to purchase of buses within a new business in Interbus. The remaining capital expenditure ~~are~~is purchase of equipment in Sweden and Norway.

~~During the period we have~~Investments ~~sold~~in ~~buses~~financial ~~worth~~fixed ofassets ~~SEK~~amounted 20to ~~million, of which~~ SEK 95 million ~~are purchased and sold during the first half year~~. ~~We have also sold apartments in Finland worth of SEK 9 million.~~

8During the period we have sold buses worth of SEK 28 million, of which SEK 9 million were purchased and sold during the first nine months. We have also sold apartments in Finland worth of SEK 10 million.

The group’s cash flow position continues to be affected by a number of uncertainties. The Company has instructed its auditors and appointed Alvarez & Marsal, the global turnaround and restructuring firm, to review the Concordia Group’s short and long term cash flow projections. Alvarez & Marsal will also be reviewing and advising on various options which may be available to the Group for improving its capital structure and liquidity position. These investigations will help the group to achieve greater certainty as to whether the group may or may not continue to be able to meet its funding and other payment obligations.

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 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 we make under the lease debt.

Based on the nominal value of the operational lease debt at ~~August~~November 3130, 2004 of SEK 1,~~950~~990 million, a a 1% change in interest rates would increase lease charges by approximately SEK 19.59 million per annum. Senior notes outstanding at ~~August~~November 3130, 2004 with a carrying value of SEK 2,~~648~~588 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~~ Swedish Kronor against the Euro. Our policy is to hedge 50% of the exposure on our two coming interest payments on the senior notes against adverse movements for us in the Swedish Kronor/Euro exchange rate. See the subheading “Liquidity ~~and~~ and Capital Resources” in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” We estimate that a 10% depreciation in the value of the Swedish Kronor against the Euro would increase our interest costs by approximately SEK 26.93 million per annum.

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 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~~ the non-tax portion of our diesel fuel costs. We estimate that a 10% ~~depreciation~~ depreciation in the value of the Swedish Kronor against the dollar would increase our diesel fuel costs by approximately SEK 1213.57 million per annum.

Inflation

Inflation had no material impact on our operations during the three months ended ~~August 31~~November 30, 2004 or the three months ended ~~August~~November 3130, 2003. However, due to the nature of our contractual business where cost increases are compensated through movements in in agreed indices (elements of total inflation) we are 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 6.1 million per annum when compared to the previous year.

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE ~~SECOND~~THIRD QUARTER

(in millions of SEK except loss per share)	Note	~~June~~September 1, 2004 – ~~August~~November 3130, 2004		~~June~~September 1, 2003 – ~~August~~November 3130, 2003
		(Unaudited)		(Unaudited)
Net revenue	1	1,~~118~~224		1,~~103~~203
Fuel, tires and other consumables		(~~213~~254	)	(~~194~~238	)
Personnel costs		(~~592~~643	)	(~~604~~643	)
Operating lease charges	4	(~~105~~108	)	(9397	)
Other external costs		(~~137~~143	)	(~~135~~134	)
Gain (Loss) on sale of fixed assets		(13	)	2
Depreciation and amortization		(8587	)	(9196	)
Operating Profit (Loss)	1	(1514	)	(123	)
Interest income		10		12
Interest expense and similar items	2	(8418	)	(7227	)
Financial income and expenses		(8318	)	(7125	)
Loss after financial items		(9832	)	(8328	)
Taxes		(10	)	333
Net loss for the period		(9932	)	(5025	)
Loss per share (in SEK)		(196,~~798~~413	)	(104,~~088~~947	)

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

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE ~~HALF~~NINE ~~YEAR~~MONTHS PERIOD

(in millions of SEK except loss per share)	Note	March 1, 2004 – ~~August~~November 3130, 2004		March 1, 2003 – ~~August~~November 3130, 2003
		(Unaudited)		(Unaudited)
Net revenue	1	23,~~375~~599		23,~~355~~558
Fuel, tires and other consumables		(~~470~~724	)	(~~444~~682	)
Personnel costs		(1,~~298~~941	)	(1,~~288~~931	)
Operating lease charges	4	(~~208~~316	)	(~~189~~286	)
Other external costs		(~~280~~423	)	(~~281~~415	)
Gain (Loss) on sale of fixed assets		63		24
Depreciation and amortization		(~~168~~255	)	(~~177~~273	)
Operating Profit (Loss)	1	(4357	)	(2225	)
Interest income		12		34
Interest expense and similar items	2	(~~125~~144	)	(~~138~~164	)
Financial income and expenses		(~~124~~142	)	(~~135~~160	)
Loss after financial items		(~~167~~199	)	(~~157~~185	)
Taxes		(1	)	4649
Net loss for the period		(~~168~~200	)	(~~111~~136	)
Loss per share (in SEK)		(3339,~~367~~927	)	(2227,~~300~~247	)

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

CONSOLIDATED BALANCE SHEETS

ASSETS(In millions of SEK)	Note	August 31, 2004	February 29, 2004
ASSETS (In millions of SEK)	Note	November 30, 2004	February 29, 2004
		(Unaudited)
Fixed assets
Goodwill		~~705~~697	721
Total intangible fixed assets		~~705~~697	721
Buildings and land		2	2
Equipment, tools, fixtures and fittings		2928	34
Vehicles		1,~~407~~344	1,491
Total tangible fixed assets		1,~~438~~374	1,527
Capitalized borrowing costs		9290	99
Other long-term receivables		1	10
Receivable due from group companies		3230	29
Total financial fixed assets		~~125~~121	138
Total fixed assets		2,~~268~~192	2,386
Current assets
Inventories		3032	30
Accounts receivable		~~295~~307	310
Other current receivables		2329	100
Accrued income and prepaid expenses		~~160~~165	238
Total receivables		~~478~~501	648
Cash and bank balances	3,8	~~202~~206	346
Total current assets		~~710~~739	1,024
TOTAL ASSETS		2,~~978~~931	3,410

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

CONSOLIDATED BALANCE SHEETS

SHAREHOLDERS’ EQUITY AND LIABILITIES (in millions of SEK)	Note	~~August~~November 3130, 2004		February 29, 2004
		(Unaudited)
Shareholders’ equity
Restricted equity
Share capital (5 000 shares at par value SEK 100)		1		1
Restricted earnings		—		—
Restricted reserves		—		—
Total restricted equity		1		1
Non-restricted equity
Retained earnings		(~~317~~315	)	83
Net loss		(~~168~~200	)	(409	)
Total non-restricted equity		(~~485~~515	)	(326	)
Total shareholder’s equity	7	(~~484~~514	)	(325	)
Liabilities
Provisions:
Provisions for pensions and similar commitments		51		53
Provisions for loss contracts		54		86
Provisions for loss-making contracts		43		86
Deferred tax liability		2		2
Total provisions		~~107~~96		141
Non current liabilities
Financial leasing obligations	3	1310		16
Senior subordinated notes	3	2,~~648~~588		2,673
Total non current liabilities		2,~~661~~598		2,689
Current liabilities
Short-term portion of financial leasing obligations	3	79		7
Accounts payable		~~211~~182		285
Other current liabilities		~~136~~135		159
Accrued expenses and deferred income		~~340~~425		454
Total current liabilities		~~694~~751		905
TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES		2,~~978~~931		3,410

PLEDGED ASSETS AND CONTINGENT LIABILITIES	6	~~August~~November 3130, 2004	Feb 29, 2004
		(Unaudited)
Pledged assets		21,~~038~~939	2,238
Contingent liabilities		670	670
TOTAL PLEDGED ASSETS AND CONTINGENT LIABILITIES		2,~~708~~609	2,908

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

CONSOLIDATED CASH FLOW STATEMENTS

	Note	Group March 1, 2004 – ~~August~~November 3130, 2004		Group March 1, 2003 – ~~August~~November 3130, 2003
		(Unaudited)		(Unaudited)
Cash flow from operating activities
Loss after financial items		(~~167~~199	)	(~~157~~185	)
- Reversal of depreciation and amortization		~~168~~255		~~177~~273
- Reversal of capital (gains) losses		(53	)	(24	)
- Reversal of change of provisions		(3045	)	(1825	)
- Reversal of capitalized cost amortizations		914		914
Change in interest receivables		(1	)	(2	)
Change in interest liabilities		(263	)	240
Paid taxes		0		—1
Exchange loss/(gain)		(2176	)	15(18	)
		(49	)	24
		8		94
Change in working capital
Increase (-)/decrease (+) in stock		0(2	)	45
Increase (-)/decrease (+) in current receivables		7659		5519
Increase (+)/decrease (-) in current liabilities		(~~120~~132	)	(6655	)
Net cash flow provided by (used in) operating activities		(9367	)	1763
Cash flow from investing activities
Investments in financial fixed assets		—(5	)	—
Investments in land, buildings, machinery and equipment		(7699	)	(1022	)
Sales of land, buildings, machinery and equipment		2028		815
Sale of financial fixed assets		910		—
Net cash flow used in investing activities		(4766	)	(27	)
Cash flow from financing activities
Payments of long-term borrowings		(34	)	(2029	)
Net cash flow provided by (used in) financing activities		(34	)	(2029	)
INCREASE (DECREASE) IN CASH AND BANK BALANCES		(~~143~~137	)	(527	)
CASH AND BANK BALANCES AT BEGINNING OF PERIOD		346		199
Translation difference		(13	)	(12	)
CASH AND BANK BALANCES AT END OF PERIOD		~~202~~206		~~193~~224

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

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~~ Concordia consist of providing regular bus services under contract through its indirect 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.

Accounting principles

The same accounting policies and methods of computation are followed for the ~~six~~nine months ended ~~August~~November 3130, 2004 ~~consolidated~~ consolidated financial statements as compared with the most recent annual ~~financial~~ financial statements except that the Company as of March 1, 2004 has adopted the Swedish Accounting Standards Council’s recommendation RR29 – Employee benefits. In accordance with Swedish GAAP, the adoption of RR29 should be accounted for as a change in accounting 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,~~661~~598 million of long-term debt due to third parties, including long-term finance lease obligations. Concordia’s ability to service the existing debt, including amortization and interest, is dependent on the underlying businesses generating sufficient cash flow and distributable earnings. Furthermore Concordia Bus AB’s ability to service their existing debt is dependent ofon the ability to transfer profit from Concordia Bus Nordic AB through Concordia Bus Nordic Holding AB to Concordia Bus AB. The non-restricted equity in the underlying companies, available for dividends, have been reduced during the year due to losses, which furthermore limits the company’s possibilities to receive dividends from subsidiaries.

The group profit and loss statement infor ~~Concordia~~November ~~August 31~~30, 2004 shows ~~that~~ that revenues generated by the underlying businesses during the period March 1, 2004 – -November ~~August 31~~30, 2004 have not been sufficient to cover the parent company’s costs. Concordia Bus Nordic AB and its subsidiaries are continuing to implement changes in the operations, changes to the administrative structure asand ~~well as~~ changes in the ~~capital~~ capital structures. We have started to see signs of significant improvements in compensation levels ~~from~~in ~~their~~ contracts with public transportation authorities.

If the cost-cutting initiatives or other measures that management deem required are not successful and losses continue, these companies’ equity bases may need to be restored and, if they are not able to comply with the covenants of the debt agreements, they may require waivers from their lenders or additional equity funding in order to continue to present financial statements under the assumption that Concordia will continue as a going concern.

These financial statements have been prepared under the assumption that the group will be successful in its initiatives and, consequently, they have been prepared assuming that Concordia will continue as a going concern.

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

Revenue	~~June~~September 1, 2004 – ~~August~~November 3130, 2004	~~June~~September 1, 2003 – ~~August~~November 3130, 2003	March 1, 2004 – ~~August~~November 3130, 2004	March 1, 2003 – ~~August~~November 3130, 2003
CPTA – Sweden	~~761~~861	~~781~~888	12,~~668~~529	12,~~697~~585
CPTA – Norway	~~111~~113	81	~~230~~343	~~180~~261
CPTA – Finland	93111	8998	~~195~~306	~~190~~288
Total CPTA	~~965~~1,085	~~951~~1,067	23,~~093~~178	23,~~067~~134
Express	9781	9081	~~176~~257	~~166~~246
Interbus	3332	3126	6395	6389
Total bus operations	1,~~095~~198	1,~~072~~174	23,~~332~~530	23,~~296~~469
Other revenue and group elimination	2326	3129	4369	5989
Total revenue	1,~~118~~224	1,~~103~~203	23,~~375~~599	23,~~355~~558

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

Operating profit (loss)	~~June~~September 1, 2004 – ~~August~~November 3130, 2004		~~June~~September 1, 2003 – ~~August~~November 3130, 2003		March 1, 2004 – November 30, 2004		March 1, 2003 – November 30, 2003
CPTA – Sweden	(97	)	526		(13	)	47
CPTA – Norway	51		1		10		1
CPTA – Finland	(63	)	(82	)	(9	)	(13	)
Total CPTA	~~(10~~5	)	(225	)	(12	)	35
Express	177		147		26		27
Interbus	42		50		8		6
Total Express and Interbus	219		197		34		33
Total bus operations	1114		1732		22		68
Goodwill amortization	(1211	)	(11	)	(34	)	(33	)
Head office items and others	(1417	)	(1824	)	(45	)	(60	)
Total operating profit	(1514	)	(123	)	(57	)	(25	)

Operating profit (loss)	March 1, 2004 – August 31, 2004		March 1, 2003 – August 31, 2003
CPTA – Sweden	(20	)	21
CPTA – Norway	9		(1	)
CPTA – Finland	(6	)	(11	)
Total CPTA	(17	)	9
Express	19		20
Interbus	6		6
Total Express and Interbus	25		26
Total bus operations	8		35
Goodwill amortization	(23	)	(22	)
Head office items and others	(28	)	(35	)
Total operating profit	(43	)	(22	)

Note 2. Interest expense and similar items

MSEK	~~June~~September 1, 2004 – ~~August~~November 3130, 2004		~~June~~September 1, 2003 – ~~August~~November 3130, 2003		March 1, 2004 – ~~August~~November 3130, 2004		March 1, 2003 – ~~August~~November 3130, 2003
Interest cost payable	(7067	)	(5452	)	(~~139~~207	)	(~~111~~162	)
Amortization of deferred financing costs	(5	)	(4	)	(914	)	(914	)
Other financial charges	(12	)	(23	)	(25	)	(46	)
Foreign exchange gains/(losses)	(856	)	~~(12~~32	)	2582		~~(14~~18	)
Total	(8418	)	(7227	)	(~~125~~144	)	(~~138~~164	)

Note 3. Liabilities to credit institutions and net indebtedness

MSEK	~~August~~November 3130, 2004		February 29, 2004
Euro 130 million - Senior Secured Notes 9,125	1,~~187~~160		1,198
Euro 160 million - Senior Subordinated Notes, 11%	1,~~461~~428		1,475
Liabilities to credit institutions	2,~~648~~588		2,673
Other long-term liabilities	1310		16
Short term portion of finance lease obligations	79		7
Total debt	2,~~668~~607		2,696
Less Cash and bank balance	(~~202~~206	)	(346	)
Net indebtedness	2,~~466~~401		2,350
Total debt	2,~~668~~607		2,696
Short term portion of finance lease obligations	(79	)	(7	)
Total long term debt	2,~~661~~598		2,689

Note 4. Operating leases

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

MSEK	~~August~~November 3130, 2004	February 29, 2004
Net present value of future lease payments
- Vehicles	~~853~~873	905
- Real estate and other	4947	52
Total	~~902~~920	957

Note 5. Fair value of financial instruments

Fuel hedge contracts

The Concordia Bus Group is exposed to commodity price risk through its fuel usage. Management actively tries to minimize the negative effects of fluctuations in the market price. During the quarter ended ~~August~~November 3130, 2004, 2420% of Concordia’s fuel usage was hedged through diesel swaps at a fixed price for the coming 63 months. The hedge contracts expire February 28, 2005.

Interest/currency hedges

Concordia’s 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 ~~August~~November 3130, 2004, 50% of the 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.

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.

Note 6. Pledged assets and contingent liabilities

MSEK	~~August~~November 3130, 2004	February 29, 2004
Pledged shares in subsidiaries	~~649~~626	709
Floating charge certificates	119	119
Pledged assets	1,~~270~~194	1,410
Guarantees and other contingent liabilities	22	22
Conditional shareholder’s contribution	648	648
Total	2,~~708~~609	2,908

As a result of the refinancing of in Concordia Bus Nordic AB in January 2004, the security package has been renegotiated. The following securities exist as of ~~August~~November 3130, 2004:

Concordia Bus Nordic Holding AB has pledged the shares of Concordia Bus Nordic AB;

Concordia Bus Nordic AB has pledged the shares of

Swebus Fastigheter AB,

Swebus AB,

Concordia Bus Finland Oy AB,

Swebus Busco AB;

~~Ingenior~~IngeniØr M.O. ~~Schoyens~~SchØyens Bilcentraler AS

Swebus Express AB

Interbus AB

Swebus Fastigheter AB has pledged the shares of

Alpus AB,

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

Malmfältens Omnibus AB;

Swebus Busco AB has granted pledge over its buses in aggregate amount of SEK 1,~~159~~101,~~507~~556,~~938~~271

~~Ingenior~~IngeniØr M.O. ~~Schoyens~~SchØyens Bilcentraler AS granted pledge over its assets in aggregate amount of SEK ~~110~~92,~~901~~769,~~716~~468;

Concordia Bus Finland Oy AB has granted pledge over floating charge certificates in an aggregate amount of EUR 1,194,134 ;

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

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

Enköping-Bålsta Fastighetsbolag ~~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~~200	)	(~~168~~200	)
Change in cumulative translation adjustment	—	911		911
Ending balance August 31, 2004	1	(485	)	(484	)
Ending balance November 30, 2004	1	(515	)	(514	)

Note 8. Cash and cash equivalents

MSEK	~~August~~November 3130, 2004	February 29, 2004
Cash and bank balances	~~152~~144	292
Restricted cash*	5062	54
Total	~~202~~206	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
Date: January 18, 2005	By:	/s/ Per Skärgård
		Ragnar Norbak Chief Executive Officer
		Per Skärgård Chief Financial Officer

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