Gunnebo Interim Report January-September 2014

Comments by Gunnebo’s President and CEO Per Borgvall
“During the quarter, order intake increased organically by 1% compared with last
year. Region Europe, Middle East & Africa (EMEA) saw an increase of 5% which
reinforces the trend for stabilisation which has been seen in the region during
the whole of the year. Compared to the previous year, order intake in our growth
markets was somewhat weaker. This is largely due to a comparatively strong third
quarter during the previous year, repercussions following the national elections
in India, a continued reluctance to invest from the retail sector in Brazil and
the fact that during the third quarter last year, Mexico had booked several
large orders for delivery over a longer period.
During the third quarter, the Group’s sales declined organically by 5%. In
Region EMEA sales have continued to stabilise which is pleasing given the
development of recent years. It is also especially pleasing to see that the cost
savings programme we are implementing is showing results, that the French
business has improved during the year, and that SafePay continues to develop
well.
Sales in Region Asia-Pacific (APAC) declined organically by 11%. The slowdown in
the region is temporary and both India and China will continue to deliver
profitable growth going forward.
In Region Americas, sales declined organically by 14%, mainly due to a weak
quarter in Brazil. However USA continues to develop positively even though
intake from deliveries to state authorities is still lower than the previous
year.
During the quarter, the acquisition of Dissamex, a provider of electronic
security services in Mexico, was completed. The acquisition doubles the turnover
in Mexico and gives us a strong, nationwide platform from which to expand our
solutions offering to the growing Mexican security market.
Since the end of the quarter, Gunnebo has acquired Clear Image, a supplier of
electronic security solutions that nicely complements our business and presents
new opportunities on the British market.

As a result of these acquisitions, together with successful market initiatives
to introduce our cash handling and entrance security solutions globally, and the
positive improvement in results we have seen during the year, we now move into
the future with confidence.”

THIRD QUARTER 2014

  · Order intake increased to MSEK 1,331 (1,248), organically it increased by
1%.
  · Net sales totalled MSEK 1,314 (1,314), organically a decrease of 5%.
  · Operating profit increased to MSEK 77 (61) and the operating margin to 5.9%
(4.6%).
  · Excluding items of a non-recurring nature of  MSEK -5 (-32), operating
profit amounted to  MSEK 82 (93) and the operating margin to 6.2% (7.1%).
  · Profit after tax for the period totalled MSEK 36 (32).
  · Earnings per share were SEK 0.47 (0.39).
  · Free cash flow amounted to MSEK -24 (83).
  · On August 28, 2014 Gunnebo acquired the Mexican company Diseños Inteligentes
de Seguridad S.A de C.V. (Dissamex). The company provides services in electronic
security and has annual sales of approximately MSEK 45.

JANUARY-SEPTEMBER 2014

  · Order intake amounted to MSEK 4,167 (4,201), organically a decrease of 3%.
  · Net sales increased to MSEK 3,983 (3,794), organically they increased by 3%.
  · Operating profit increased to MSEK 236 (119) and the operating margin to
5.9% (3.1%).
  · Operating profit excluding items of a non-recurring nature of MSEK 18 (-54)
increased to MSEK 218 (173) and the operating margin to 5.5% (4.5%).
  · Profit after tax for the period increased to MSEK 139 (54).
  · Earnings per share were SEK 1.83 (0.69).
  · Free cash flow amounted to MSEK -48 (-16).
  · In June 2014, the French subsidiary Fichet-Bauche Telesurveillance was
divested with a capital gain of MSEK 73, which is entered under operating profit
as an item of a non-recurring nature.

Full report is attached to this press release.

Invitation to Telephone Conference on October 23, 09.00 (CET)

To participate in the conference, please sign up using the link below:
https://eventreg1.conferencing.com/webportal3/reg.html?Acc=922949&Conf=191272
Once registered, you will receive a phone number and a password.
08:55  Call in to the conference
09:00  Review of the interim report by Gunnebo’s President and CEO, Per
Borgvall, and CFO, Christian Johansson
09:25  Questions and answers
09:45  Closing of telephone conference

Copies of the presentation will be available 30 minutes prior to the telephone
conference on www.gunnebogroup.com. Attending from Gunnebo AB are President and
CEO, Per Borgvall, and CFO, Christian Johansson.
A recording of the telephone conference will be available on
www.gunnebogroup.com from late afternoon October 23.

GUNNEBO AB (publ)
Group Finance

For more information, please contact:
Per Borgvall, President & CEO Gunnebo AB, tel. +46 10 2095 032, or
Christian Johansson, CFO Gunnebo AB, tel. +46 10 2095 032

www.gunnebogroup.com

Gunnebo discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.01 CET on October 23, 2014.
The Gunnebo Security Group is a global leader in security products, services and
solutions with an offering covering cash handling, safes and vaults, entrance
security and electronic security for banks, retail, CIT, mass transit, public &
commercial buildings and industrial & high-risk sites.

The Group has an annual turnover of €610 million, employs 5,600 people and has
sales companies in 33 countries across Europe, Middle East & Africa, Asia
-Pacific and the Americas as well as Channel Partners on over 100 additional
markets.

We make your world safer.