Gunnebo Interim Report January-June 2013

Comments by Gunnebo’s President and CEO Per Borgvall

“Order intake during the quarter developed well, with organic growth of 13%. The business developed strongly in the Asia-Pacific region with growth of 32%. The sales company in Malaysia, which was established during the fourth quarter of 2012, continues to develop well. During the quarter a strategically important order was signed for the delivery and installation of a robotized safe deposit locker system, SafeStore Auto, in Malaysia. Since the end of the quarter Gunnebo has also acquired a distributor within entrance control in South Korea, which further strengthens the Group’s platform in Asia.

Business in the Americas region has also developed well. In Brazil the first cash handling order was signed and the sales company in Mexico won a large order both for product deliveries and services with one of the country’s banks. Hamilton in the US, which was acquired during the third quarter of 2012, is performing according to plan.

Sales on the majority of markets in Europe have, however, remained weak in all Business Areas apart from Global Services, where business is more stable. The fixed costs in Europe are still too high; efforts to reduce the cost base have intensified during the quarter and will continue during the second half of the year. It is pleasing to note that the SafePay business in Europe is continuing to improve.

Gunnebo is continuing on its set path of adapting its costs in Europe to increase its profitability while at the same time investing in growth in other parts of the world.”

Second quarter 2013

• Order intake increased to MSEK 1,454 (1,254), organically it increased by 13%. Acquired units contributed MSEK 107.
• Net sales increased to MSEK 1,325 (1,270), organically they increased by 3%. Acquired units contributed MSEK 88.
• Operating profit increased to MSEK 57 (42) and the operating margin to 4.3% (3.3%). Acquired units had a positive effect on operating profit of MSEK 15.
• Operating profit excluding expenses of a non-recurring nature of MSEK -12 (-8) amounted to MSEK 69 (50) and the operating margin to 5.2% (3.9%).
• Profit after tax for the period totalled MSEK 34 (24).
• Earnings per share were SEK 0.45 (0.32).

January-June 2013

• Order intake increased to MSEK 2,953 (2,849), organically it increased by 2%. Acquired units contributed MSEK 202.
• Net sales increased to MSEK 2,480 (2,439), organically they were unchanged. Acquired units contributed MSEK 172.
• Operating profit increased to MSEK 58 (52) and the operating margin to 2.3% (2.1%). Acquired units had a positive effect on operating profit of MSEK 25.
• Operating profit excluding expenses of a non-recurring nature of MSEK -22 (-12) increased to MSEK 80 (64) and the operating margin to 3.2% (2.6%).
• Profit after tax for the period totalled MSEK 22 (21).
• Earnings per share were SEK 0.29 (0.28).

Full report is attached to this press release.

Invitation to Telephone Conference on July 17 10:00 (CET)

The agenda for the telephone conference will be as follows:
09:55 Call in to the conference
10:00 Review of the year-end release by Gunnebo’s President and CEO, Per Borgvall and CFO Christian Johansson
10:25 Questions and answers
10:45 Closing of telephone conference

To participate in the conference, please sign up using the link below. When registering, you will receive a phone number and a password:

https://eventreg1.conferencing.com/webportal3/reg.html?Acc=720511&Conf=187869

Copies of the presentation used during the conference will be available 30 minutes prior to the telephone conference on www.gunnebogroup.com.
A re-play of the conference will be avaibale on www.gunnebogroup.com during the afternoon July 17.

GUNNEBO AB (publ)
Group Communications

For more information, please contact:
Per Borgvall, President & CEO Gunnebo AB, tel. +46 10 2095 032, or
Christian Johansson, CFO Gunnebo AB, tel. +46 10 2095 032, or
Karin Wallström, Communication & IR Director Gunnebo AB, tel. +46 10 2095 026 or e-mail karin.wallstrom@gunnebo.com
www.gunnebogroup.com

Gunnebo discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.01 CET on July 17, 2013.

The Gunnebo Security Group provides efficient and innovative security solutions to customers around the globe. It employs 5 800 people in 33 countries across Europe, Asia, Africa, Australia and Americas, and has a turnover of €580m. Gunnebo focuses its global offering on Bank Security & Cash Handling, Secure Storage, Global Services and Entrance Control.

We make your world safer.