TROAX: INTERIM REPORT JANUARY – MARCH 2016

Hillerstorp 10thof May, 2016 12.00 CET
JANUARY – MARCH 2016

  · Order intake increased by 12 per cent, 29,1 (25,9) MEUR, or 11 per cent
adjusted for acquisition and currency.
  · Sales increased 9 per cent to 26,8 (24,7) MEUR, or 7 per cent adjusted for
acquisition and currency.
  · Operating profit decreased to 4,7 (5,0) MEUR
  · Operating margin decreased to 17,5 (20,2) per cent.
  · Adjusted operating profit decreased to 4,7 (5,0) MEUR.
  · Adjusted operating margin decreased to 17,5 (20,2) per cent, after planned
higher market investments and implementation cost for new paint line.
  · Earnings per share was 0,14 (0,15) EUR.

CEO COMMENTS

During the first Quarter 2016, Troax showed an increased strength in the
development of the orders received. This increased by 12 per cent (11 per cent
excluding currency and acquisitions). This is considered to be above market
development for the first quarter. All regions, except UK, have increased
compared with the same quarter last year. The improvement is especially positive
in New markets and can be derived from good development in North America and
China. Positive in that we now have the highest order book ever, thanks to the
good order intake.

Sales invoiced increased in the quarter by 9 per cent, compared with the same
period last year (excluding acquisition and currency the increase is 7 per
cent). The development was especially positive for New Market, but also
Continental Europe saw good figures. Totally, the Group has increased to a
turnover level of approximately 106 MEUR on a rolling 12 months basis.

The result development has been slightly negative during the quarter compared
with last year. The deviation is mainly explained by planned market investments
in New Markets but also in extra costs connected with the implementation of the
new paint line ( 0,4 MEUR in quarter one). This new line is expected to be
running as planned during quarter 2, when these costs are expected to decrease
step by step. We may conclude that the new line is running well. The extra costs
are mainly explained by planned expenditure in connection with startup and
corrective adjustments.

We have not had any major currency effect in the result this quarter (-0,1),
last year the effect was +0,4. The operating result therefore becomes 4,7 (5,0)
MEUR, which corresponds to a profit margin of 17,5 per cent to be compared with
20,2 per cent last year.

The result per share, after the first quarter is 0,14 euro to be compared with
0,15 euro last year.

The Working Capital has somewhat increased during the quarter, with a certain
increase of the receivables due to the good invoicing level. We have also a
greater amount than usual in work in progress (WIP), as we increase work on
projects for customers, not yet ready for invoicing. We have continued with good
cash generation during the quarter and the net debt is now 44,3 MEUR, a decrease
of 1,7 MEUR in the quarter.

Thomas Widstrand, President and CEO

PHONE CONFERENCE
Invitation to presentation of the fourth quarter result:
Thomas Widstrand, CEO presents the result on a phone conference on the 10th of
May 2016 at 18:00 CET. The conference will be held in English.
For more information please refer to http://www.troax.com/en/news

This information is in accordance with the Swedish Securities Market Act, the
Swedish Financial Instruments Trading Act and/or the regulations of NASDAQ
Stockholm. The information was submitted for publication on 10h of May, 2016 at
12.00.
Thomas Widstrand
President and CEO
Troax Group AB
Box 89
330 33 Hillerstorp
 (http://tel 46 (0)370-82831)Tel 46 (0)370-82831
http://www.troax.com
thomas.widstrand@troax.com
About Troax

Troax is the leading global supplier of indoor perimeter protection (“metal
-based mesh panel solutions”) for the market segments: Machine guarding,
Warehouse partitioning and Property Protection. Troax develops high quality and
innovative safety solutions to protect people, property and processes.

Troax Group AB (publ), Reg. No. 556916-4030, has a global organisation with an
unparalleled sales force and efficient logistics setup, enabling local presence
and short delivery times in 33 countries.

In 2015 Troax net sales amounted to 103 MEUR and the number of employees
amounted to 440 persons. The Company’s head office is located in Hillerstorp,
Sweden.

www.troax.com