Gunnebo interim report January-September 2011

Comments by Gunnebo’s President and CEO Per Borgvall
“The operating profit for the third quarter is in line with our long-term improvement in results, although slightly below last year, which can be explained by differences in deliveries during the quarter for a single large order in Africa/the Middle East. Operating profit and profit after tax have both improved during the year.

Our fencing business Perimeter Protection was divested during the third quarter, in line with our strategy. This means that while we continue to focus on our core business with higher refinement values, we are also gradually shifting the point of gravity of our business to markets outside of Europe. Five years ago, sales outside of Europe accounted for just over 10% of Group sales, while at the end of the third quarter that figure has risen to 32%.

Growth outside of Europe is around 20%, and in the Asia/Pacific region it is approximately 25%. We are therefore continuing to invest in growth markets that are important to us. One example is the acquisition of a South African entrance control company during the third quarter.

In Europe we have noted good development of our German operation during the year – a very pleasing development as this market has previously represented a loss-maker for us. The sales company in Italy is developing well and the French market is continuing to develop stably, while a continued decline is evident in Spain.
It is hard to determine the effect on the Group of the uncertain market conditions in Europe, especially bearing in mind that the need for security tends not to decline but rather increase in times of uncertainty. Thanks to our financial position we are well-placed to deal with the situation, and have scope for further growth initiatives.”

Third quarter 2011

• Order intake amounted to MSEK 1,175 (1,208), in constant currency rates it was unchanged.
• Net sales increased in constant currency rates by 1% and amounted to MSEK 1,247 (1,278).
• Operating profit excluding items of a non-recurring nature amounted to MSEK 74 (88) and the operating margin to 5.9% (6.9%).
• Operating profit amounted to MSEK 61 (78) and the operating margin to 4.9% (6.1%).
• Net financial items improved to MSEK -5 (-16).
• Profit after tax for the period improved and totalled MSEK 44 (39).
• Earnings per share were SEK 0.58 (0.51).

January-September 2011

• Order intake increased in constant currency rates by 2% and amounted to MSEK 3,868 (4,065).
• Net sales increased in constant currency rates by 2% and amounted to MSEK 3,645 (3,822).
• Operating profit excluding items of a non-recurring nature amounted to MSEK 179 (182) and the operating margin to 4.9% (4.8 %).
• Operating profit improved to MSEK 158 (132) and the operating margin to 4.3% (3.5%).
• Net financial items improved to MSEK -19 (-57).
• Profit after tax for the period improved and totalled MSEK 77 (32).
• Earnings per share were SEK 1.02 (0.42).

Full report is attached to this press release.

The interim report will be presented by Gunnebo’s President and CEO Per Borgvall and CFO Fredrik Östman at a phone conference October 28, 10.00 CET. To participate in the conference, please sign up using the link below. When registering, you will receive a phone number and a password:
https://eventreg2.conferencing.com/webportal3/reg.html?Acc=572424&Conf=206016

On Gunnebo’s website you will also find presentation material for download appr. 30 minutes prior to the conference starts.

GUNNEBO AB (publ)
Group Communications

For further information, please contact:
Per Borgvall, President and CEO Gunnebo AB, tel. +46 10 2095 000, or
Fredrik Östman, CFO Gunnebo AB, tel. +46 10 2095 037, or
Karin Wallström, Communication & IR Director Gunnebo AB, tel. +46 10 2095 026, or e-mail karin.wallstrom@gunnebo.com

www.gunnebo.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 October 28, 2011.

The Gunnebo Security Group provides efficient and innovative security solutions to customers around the globe. It employs 5 300 people in 30 countries across Europe, Asia, Africa, Australia and North America, and has a turnover in excess of €580m. Gunnebo focuses its global offering on Bank Security & Cash Handling, Secure Storage, Entrance Control and Services.

We make your world safer.

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