Year-end Report January - December 2011

Year-end Report January - December 2011

1 January – 31 December

  · Revenues increased 25 per cent adjusted for currency effects and calculated
on comparable workdays. Prior to adjustments, revenues increased 23 per cent to
SEK 4,237 M (3,447).
  · EBIT increased 11 per cent to SEK 536 M (485) and the EBIT margin amounted
to 13 per cent (14).
  · Profit after financial items rose 8 per cent to SEK 523 M (485).
  · Profit after tax amounted to SEK 380 M (351).
  · Earnings per share before and after dilution amounted to SEK 11.39 (10.95).
  · The Board proposes a dividend of SEK 8.00 (8.00).

1 October – 31 December

  · Revenues increased 22 per cent adjusted for currency effects and calculated
on comparable workdays. Prior to adjustment, revenues increased 22 per cent to
SEK 1,088 M (892).
  · EBIT amounted to SEK 104 M (110) and the EBIT margin to 10 per cent (12).
  · Profit after financial items amounted to SEK 100 M (111).
  · Profit after tax totalled SEK 71 M (78).
  · Earnings per share before and after dilution were SEK 2.16 (2.52).
  · Net debt totalled SEK 580 M (12) at the end of the period.

Significant events

  · On 12 October, Mekonomen signed an agreement to acquire Meca. Meca’s sales
forecast for 2011 amounted to approximately SEK 1,500 M and operating profit to
about SEK 180 M. The acquisition was approved by Swedish Competition Authority
in December 2011 and a decision by the Norwegian Competition Authority is
expected at latest on March 16, 2012
  · The acquisition of Sørensen og Balchen in Norway had an impact of SEK 176 M
on net sales for the fourth quarter and SEK 603 M for the 11 March – 31 December
period. EBIT was impacted by SEK 25 M for the quarter and SEK 88 M for the 11
March – 31 December period.
  · EBIT was impacted by SEK 23 (10) M during the quarter and SEK 58 (10) M for
the full-year, attributable to acquisition costs in connection with Sørensen og
Balchen, as well as Meca and other ventures.

                          October -                 January -
                          December                  December
SUMMARY OF THE     2011   2010       Change  2011   2010       Change %
GROUP’S EARNINGS                     %
TREND
Revenues, SEK M    1 088  892        22      4 237  3 447      23

EBIT, SEK M        104    110        -5      536    485        11
Profit after       100    111        -10     523    485        8
financial items,
SEK M
Profit after tax,  71     78         -8      380    351        8
SEK M
Earnings per       2.16   2.52               11.39  10.95       
share, SEK
EBIT margin, %     10     12                 13     14          

CEO’s comments

Operating profit for the full-year increased 11 per cent – revenues rose 23 per
cent

Improved revenues for 2011 despite a weak market

Mekonomen’s EBIT for the full-year 2011 increased to SEK 536 M (485) and
revenues rose 23 per cent to SEK 4,237 M (3,447).

During the fourth quarter, revenues increased 22 per cent. Operating profit
declined 5 per cent to SEK 104 M (110), primarily due to non-recurring costs of
SEK 23 M, consisting of in long-term investments of SEK 12 M and costs totalling
SEK 11 M in connection with the acquisition of Meca.

The number of affiliated workshops rose in 2011 to 1,683 (1,336) and the number
of stores increased to 334 (230). Sørensen og Balchen was acquired in March and
in October an agreement was signed to acquire Meca Scandinavia. The acquisition
of Meca has been approved by the Swedish Competition Authority and is being
investigated by the Norwegian Competition Authority. During the year, several
market initiatives were implemented, for example, new Mega units, the
establishment in Finland, the marine venture, proprietary workshops, as well as
the integration of Sørensen og Balchen.

The 2011 financial year was characterised by weak market growth, primarily
pertaining to consumer and accessories sales. Particularly in the fourth
quarter, the market was negatively impacted partly by the warm weather and
partly by the negative general economic outlook. However, Mekonomen experienced
stronger growth than the total market in the Nordic region for both the fourth
quarter and the full-year 2011, mainly due to successful market investments.

EBIT in Denmark for the full-year 2011 rose to SEK 63 M (45) and the EBIT margin
to 8 per cent (6). Operating profit for the fourth quarter declined to SEK 1 M
(7), primarily due to intense market investments to increase the number of
affiliated workshops, as well as a tougher competitive environment.

Operating profit for Sørensen og Balchen in the fourth quarter amounted to SEK
25 M and for the 11 March – 31 December period to SEK 88 M. The integration work
has been very successful. Sørensen og Balchen is operated as an independent
group within Mekonomen, with its own brand and store concept.

EBIT margin in Sweden for the full-year 2011 amounted to 18 per cent (18) and
sales rose 2 per cent. Sales in affiliated workshops rose significantly during
the year and Mekonomen Fleet noted considerable successes.

The EBIT margin in Norway for the full-year 2011 amounted to 16 per cent (18)
and sales rose 2 per cent, adjusted for currency effects and calculated on
comparable number of workdays. During the year, market initiatives were
implemented with the establishment of Medium and Mega units in Norway. Mekonomen
Fleet also had a breakthrough in the Norwegian market in 2011.

Costs for Mekonomen’s long-term market initatives will also have an impact of
approximately SEK 10 M on earnings during the first quarter of 2012. In
addition, it is estimated that non-recurring costs in connection with the
acquisition of Meca will impact earnings by a further SEK 9 M during the first
quarter.

After a year of ambitious initiatives, including two major acquisitions,
Mekonomen now has a stable platform. Consequently, the 2012 financial year will
be one of consolidation, with a focus on improved profitability in a market that
will most likely remain weak. The investments implemented during 2011 constitute
a stable foundation to further confirm the role as the leading player in the
Nordic region within our market segment. Mekonomen’s journey continues!

Håkan Lundstedt
President and CEO

For further information, please contact:
Håkan Lundstedt, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Gunilla Spongh, CFO Mekonomen AB, Tel: +46 (0)8-464 00 00

The information in this interim report is such that Mekonomen is obligated to
publish in accordance with the Securities Market Act.

The information was submitted for publication on 15 February 2012.

Mekonomen makes CarLife easier through a wide and easily accessible range of
inexpensive and innovative solutions and products for consumers and companies.
We are the leading automotive spare-parts chain in the Nordic region, with
proprietary wholesale operations, more than 300 stores and more than 1,600
workshops operating under the Mekonomen brand.