Interim report January - March 2015

1 January - 31 March 2015
1)




● Revenue rose 7 per cent to SEK 1,382 M (1,290). Adjusted for currency effects
and calculated on the comparable number of workdays, revenue rose 7 per
cent.


● EBITA increased 8 per cent to SEK 169 M (156) and the EBITA margin was 12 per
cent (12).


● EBIT increased 12 per cent to SEK 142 M (126) and the EBIT margin was 10 per
cent (10).


● The gross margin amounted to 55.5 per cent (55.6).



● Earnings per share, before and after dilution, rose to SEK 2.88
(2.50).


● Cash flow from operating activities amounted to a negative SEK 47 M (neg:
71).


● Net debt at the end of the period amounted to SEK 1,693 M (1,738), compared
with SEK 1,629 M at the end of the
year.


1) During the quarter, the last two stores in Denmark were discontinued and in
this report, the Danish store operation is presented according to the rules for
discontinued operations in IFRS 5. All comparable periods have been
recalculated. The Danish store operation was previously included in the MECA
segment. All amounts pertains to continuing operations.

CEO’s comments

The best first quarter ever

Mekonomen Group reported strong growth, improved operating profit and higher
market shares in the first quarter of 2015. Our strong concepts and customer
focus have generated good impact on earnings for the quarter.

The Group’s revenue rose 7 per cent in the first quarter. Profit after financial
items rose 18 per cent to SEK 144M (123) and EBIT increased 12 per cent to SEK
142 M (126). The market was stable in the first quarter and our expectations for
2015 are for a somewhat stronger market.
Growth generated improved EBIT in MECA and in Sørensen og Balchen. EBIT for MECA
increased more than 50 per cent, where the first quarter of 2014 was negatively
impacted by SEK 9 M due to personnel-related, non-recurring costs pertaining to
the cost-savings programme. The cost-savings programme implemented in 2014 has
also had full impact on earnings throughout the Group.
In Mekonomen Nordic, additional market investments and obsolescence in
Marinshopen had a negative impact of SEK 7 M on earnings for the first quarter
and EBIT amounted to SEK 82 M (88). Measures were implemented to strengthen
earnings in Mekonomen Nordic.
Mekonomen Group is expanding to South Korea with sales of the proprietary spare
parts range, ProMeister.Sales will occur through collaboration with the South
Korean distributor, EK (Eiko) Global. This is a milestone for Mekonomen Group,
since our products and brands are now on the map of the large Asian market.
South Korea is part of our international expansion and will be the sixth country
in our vision of 20 countries by 2020.
Our new model, with sales directly to the Danish franchise workshops, whereby we
have efficient logistics without intermediaries in the distribution chain, was
implemented starting in the first quarter and follows the established plan. Due
to the restructuring, earnings in the earlier Danish operation were reported
separately from earnings for Mekonomen Group.
The first quarter was a very good quarter for Mekonomen Group and we noted that
our strong concepts and our skilled and committed employees are the key to our
success. As announced earlier, I will be stepping down as CEO. As we have seen
in the first quarter, Mekonomen Group is strong and has excellent potential for
good growth for the remainder of 2015.

Håkan Lundstedt
President and CEO

For further information, please contact:
Håkan Lundstedt, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Per Hedblom, CFO Mekonomen AB, Tel: +46 (0)8-464 00 00
Gunilla Spongh, International Business Director, 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 13 May 2015 at 7:30 a.m.