Gunnebo interim report January-June 2006

Second quarter 2006 - The process of introducing the new Gunnebo One Company integrated organisation is in all essentials proceeding as planned. However, productivity also weakened in the second quarter, especially in France, which also has affected the result. - The order intake declined by 3% during the quarter to MSEK 1,784 (1,841). Organically, the decline was 4%. Invoiced sales rose by 3% to MSEK 1,664 (1,612). Organic growth was 2%. - The result after financial items and before items affecting comparability was a profit of MSEK 20 (profit 44); after these items it was a loss of MSEK 1 (profit 44). - Net cost items affecting comparability amounted to MSEK 21 (-) and consisted largely of the costs associated with the previously announced Gunnebo One Company integration programme and capital gains on property sales in India. - The result after tax was a loss of MSEK 1 (profit 32). - Earnings per share were SEK 0 (profit: 0.70). Excluding items affecting comparability earnings per share were SEK 0.35 (0.75). - The operating cash flow was a negative of MSEK 40 (positive 49). January-June 2006 - The order intake increased by 1% during the first half-year to MSEK 3,392 (3,365). Organically there was a decline of 1%. Invoiced sales rose by 3% to MSEK 3,146 (3,050). Organic growth was 1%. - The business achieved financial breakeven after financial items and before items affecting comparability (profit 36); after these items the result was a loss of MSEK 55 (loss 8). - Net cost items affecting comparability amounted to MSEK 55 (44) and consisted largely of the costs associated with the previously announced Gunnebo One Company integration programme and capital gains on property sales in India. - The result after tax was a loss of MSEK 39 (loss 6). - The loss per share was SEK 0.85 (loss: 0.15). Excluding items affecting comparability earnings per share were SEK 0.05 (0.65). - The operating cash flow was a negative of MSEK 99 (positive 10). Outlook for 2006 as a whole The process of integration in connection with the re-organisation is proceeding in all essentials as planned. However, on the Group’s largest market, France, the company’s activities have been affected by disruptions and lower productivity in connection with the change process, and this situation is expected to persist during the second half-year. The profit for 2006 as a whole, after financial items and excluding items affecting comparability, is therefore expected to be slightly lower than last year’s (MSEK 238). The previous forecast read as follows: “The result after financial items for 2006 is expected to be significantly higher than for 2005, both before and after items affecting comparability (MSEK 238 and MSEK 33), but it will still be below the company’s established financial targets.” GUNNEBO AB (publ) Group Communications For further information, please contact: Göran Gezelius, President & CEO Gunnebo AB, tel. +46 31 83 68 00, or Lennart Gustavsson, CFO Gunnebo AB, tel.+46 31 83 68 00, or Janerik Dimming, SVP Group Communications Gunnebo AB, tel. +46 31 83 68 03, mobile:+46 705 83 68 03, or e-mail janerik.dimming@gunnebo.com www.gunnebo.com