Interim report January - September 2015


● Revenue increased 5 per cent to SEK 1,405 M (1,340). Excluding the acquisition
of Opus Equipment revenue   increased 3 per cent. Adjusted for currency effects
and calculated on the comparable number of workdays,   revenue rose 8 per cent.
Sales in comparable units rose 4 per cent.
● EBITA amounted to SEK 196 M (214) and the EBITA margin amounted to 14 per cent
(16).
● EBIT amounted to SEK 168 M (186) and the EBITA margin amounted to 12 per cent
(14).
● EBITA and EBIT have been negatively affected by SEK 32 M compared with the
year-earlier period; from currency effects in the balance sheet of SEK 12 M
(pos: 4) as well as from currency effects pertaining to the NOK of SEK 16 M
compared with the year-earlier period.
● The gross margin increased to 55.8 per cent (55.4).
● Earnings per share, before and after dilution, amounted to SEK 3.01 (3.69).
● Cash flow from operating activities rose to SEK 155 M (113), of which
discontinued operations comprised a negative SEK 18 M (neg: 39).
● Net debt at the end of the period amounted to SEK 1,760 M (1,763), compared
with SEK 1,629 M at the end of the year.

CEO’s comments
Good growth but negative currency effects in the third quarter
Growth remained favourable during the third quarter and cash flow strengthened
compared with the
year-earlier period. In the quarter however, Mekonomen Group was impacted by
negative currency effects amounting to SEK 30 M and did not match the earnings
of the year-earlier period.

Mekonomen Group’s revenue for the third quarter of 2015 increased 5 per cent to
SEK 1,405 M (1,340) and the operating profit declined to SEK 168 M (186). The
operating margin declined to 12 per cent (14). MECA’s export business to Denmark
negatively impacted profit for the third quarter with a negative EBIT impact of
SEK 9 M.
Cash flow strengthened during the quarter.
Revenue for the nine-month period rose 7 per cent to SEK 4,314 M (4,016) and the
EBIT increased 3 per cent to SEK 507 M (494). The market trend was stable
compared with the year-earlier period and our assessment is that this trend will
continue for the rest of the year.
MECA’s export business to Denmark is expected to have a continued negative
impact on earnings in the fourth quarter. Measures have been taken to offset the
gross margin effects of the weaker NOK, but expectations are that the currency
effects will continue to have some negative impact on earnings for the Group
also in the fourth quarter.
In the third quarter, the good growth has continued with a 12 per cent increase
in MECA, 2 per cent in Mekonomen Nordic and 1 per cent in Sørensen og Balchen.
Sales increased with 5 per cent to our affiliated workshops, with 8 per cent to
consumers and with 4 per cent to other workshops during the quarter. The
affiliation of our concept workshops in Sweden, in MECA and Mekonomen to the
Swedish Association of Vehicle Workshops is one example of how we continuously
increase quality requirements in our concept workshops, to thereby ensure
continued growth.
We posted continued healthy sales increase for our proprietary brand ProMeister,
which accounted for about 13 per cent of spare-parts sales in the Group in the
third quarter.
With the aim of enhancing our efficiency and speed, Mekonomen Sweden and
Mekonomen Norway will be reporting directly to me as from 2016. This means that
one organisational level, Mekonomen Nordic, is removed. The measure is expected
to result in savings with a positive EBIT effect of SEK 15 M per year, which
will start to generate an effect in 2016 and will be fully realised after the
first half of 2017.
To ensure the good growth, we will implement programmes aimed at raising quality
levels in our workshops, which will include training courses, as well as the
development and launch of new workshop concepts. In addition, we will take
further steps in our digital business, where our Group-wide e-commerce platform
for B2B and B2C comprises the single largest project decided to date.
It is by strengthening our relationships with existing and new customers that we
generate profitable growth. This effort is progressing in all parts of the
Group!

Magnus Johansson
President and CEO

For further information, please contact:
Magnus Johansson, President and CEO Mekonomen AB, Tel: +46 (0)8-464 00 00
Per Hedblom, 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 11 November 2015 at 7:30 a.m.

Attachments

11104701.pdf