Interim report January – March 2016

January – March 2016

  · Net sales increased by 3% to SEK 3,427 million (3,325)
  · The order backlog was up 10% to SEK 7,135 million (6,502)
  · Operating profit was up 15% to SEK 175 million (152)
  · The operating margin was improved to 5.1% (4.6)
  · Adjusted operating profit was SEK 175 million (172). Specific costs was SEK
0 million (20). The adjusted operating margin was 5.1% (5.2)
  · Profit after tax was SEK 123 million (62)
  · Cash flow from operating activities was SEK 13 million (289) due to very
strong cash flow in the fourth quarter
  · Net debt was SEK 2,416 million (2,441)
  · Two acquisitions were completed in the quarter, adding annual sales of SEK
107 million
  · Earnings per share was SEK 0.61 (0.31)

CEO statement

Lower sales growth mainly due to negative Easter effect
A short fall in production is normal during the Easter weeks because of public
holidays and holiday leave, which have a negative impact on net sales. The 2016
Easter holiday fell in the first quarter, unlike the previous year when Easter
occurred in the second quarter. On Group level we estimate the negative impact
from the Easter effect to 4-5 percent on net sales.
Norwegian operations and net sales were particularly affected by the Easter
effect, which was part of the reason for the lower net sales in Norway. We are
also seeing weak demand in the Southwest region, due to lower activity in the
oil and gas sector. We are taking action to adjust capacity due to the lower
demand. Overall demand in Norway continues to be good, supported by a strong
order backlog which was up 6 percent.

Continued focus on margin over volume
The underlying operating margin, excluding Finland, improved from 5.3 percent to
5.5 percent. Operating profit in Sweden increased by 16 percent, the operating
margin in Norway was stable, while the operating margin in Denmark decreased due
to certain project write-downs. The market is gradually improving. Given this
situation, project selection is important and margin always takes precedence
over volume for Bravida.
Our work on the operational efficiency initiatives continues. In terms of our
productivity initiatives, it is now implemented in 83 percent of our branches,
within the purchasing initiative several contracts were renegotiated and are now
being implemented in our branches. Within the service initiative training has
started during the first quarter and the impact on sales is expected to show in
the second half in 2016.

Order intake remains strong and order backlog at record levels
Order intake rose by 6 percent. This helped us maintain a good order backlog at
a record high level, at just over SEK 7.1 billion. Compared with the first
quarter of 2015, the order backlog in Norway increased by 6 percent in local
currency, by 2 percent in Denmark and by 9 percent in Sweden. This healthy order
backlog points to continued stable operations.

Sharp improvement in earnings per share
Earnings per share rose by 99 percent to SEK 0.61 (0.31). This was partly
because the first quarter of 2016 was not burdened by specific costs, which
amounted to SEK 20 million in 2015. It was also because the refinancing and
settlement of currency and interest rate hedges in autumn 2015 improved net
financial items by SEK 53 million, of which net interest items improved by SEK
46 million. Dividend proposal to the annual general meeting SEK 1 per share is
above the financial target.

Mattias Johansson, Stockholm, April 2016

For further information, please contact:
Mattias Johansson, CEO and Group President of Bravida. Tel: +46 8 695 20 00
Nils-Johan Andersson, CFO of Bravida. Tel: +46 70 668 50 75
IRcontact@bravida.com

The information above has been published pursuant to the Swedish Securities
Markets Act (Sw: Lag om värdepappersmarknaden) and the Swedish Financial
Instruments Trading Act (Sw: Lagen om handel med finansiella instrument).

This information was released for publication at 07:30 CET on 28 April 2016.

A webcasted telephone conference will be held at 09:30 CET on 28 April 2016.
Bravida is a leading multi-technical service provider i the Nordics, with about
9,000 employees. Bravida delivers specialist services as well as complete
electrical, heating and plumbing, and HVAC solutions, offering everything from
design and project planning to installation, operation and maintenance. Bravida
is represented in around 140 locations in Sweden, Norway, Denmark and Finland.
www.bravidagroup.com/en/