Gunnebo Interim Report January-September 2013

Comments by Gunnebo’s President and CEO Per Borgvall

“The quarter has developed well and order intake grew organically by 10%. The Asia-Pacific region continued to show excellent growth, organically it increased by 45%. In the Americas region order intake grew organically by 8%. Hamilton Safe in the US, which in this quarter had been part of the Group for just over a year, had stable order development. In the Europe, Middle East and Africa region (EMEA) order intake increased organically by 4%, which indicates some recovery after a weak first half-year. The markets in Europe, however, generally remained unstable and showed no signs of an actual recovery.

Our focus on moving the point of gravity to growth markets and adjust the cost-structure in Europe has given good effect. In the quarter, business outside of Europe accounted for 42% of net sales. The quarter is burdened with costs of a non-recurring nature of MSEK 32, and year to date with MSEK 54. Payback-time for these measures is estimated to 12 months. We will continue on this journey. In addition, the SafePay business is continuing to improve and the former trend of losses within electronic article surveillance has been reversed during the quarter. Operating margin, excluding items affecting comparability, amounted to 7.1% in the quarter.

During the quarter a number of orders that are fully in line with the Group’s strategy were received. In Brazil we have had a breakthrough in the CIT customer segment with an order for cash handling solutions. The recently acquired company in Korea has won a major order from Samsung for entrance control. In Europe we have received an important order for solutions to tighten security at airport check-in from TUI Airlines in Belgium. A major German retail chain is continuing to streamline cash handling in its stores with equipment from Gunnebo, and Spanish Bankia has commissioned Gunnebo to upgrade security in its branch network in line with new legal requirements.“

Third quarter 2013

• Order intake increased to MSEK 1,248 (1,084), organically it increased by 10%. Acquired units contributed MSEK 60.
• Net sales increased to MSEK 1,314 (1,280), organically they increased by 3%. Acquired units contributed MSEK 36.
• Operating profit increased to MSEK 61 (17) and the operating margin to 4.6% (1.3%). Acquired units had a positive effect on operating profit of MSEK 7.
• Operating profit excluding expenses of a non-recurring nature of MSEK -32 (-46) increased the operating profit to MSEK 93 (63) and the operating margin to 7.1% (4.9%).
• Profit after tax for the period totalled MSEK 32 (1).
• Earnings per share were SEK 0.39 (-0.02).

January-September 2013

• Order intake increased to MSEK 4,201 (3,933), organically it increased by 4%. Acquired units contributed MSEK 262.
• Net sales increased to MSEK 3,794 (3,719), organically they increased by 1%. Acquired units contributed MSEK 208.
• Operating profit increased to MSEK 119 (69) and the operating margin to 3.1% (1.9%). Acquired units had a positive effect on operating profit of MSEK 32.
• Operating profit excluding expenses of a non-recurring nature of MSEK -54 (-58) increased the operating profit to MSEK 173 (127) and the operating margin to 4.5% (3.4%).
• Profit after tax for the period totalled MSEK 54 (22).
• Earnings per share were SEK 0.69 (0.26).

Full report is attached to this press release.

Invitation to Telephone Conference on October 24 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=922949&Conf=188535

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 available on www.gunnebogroup.com during the afternoon October 24.

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

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 October 24, 2013.

The Gunnebo Security Group provides efficient and innovative security solutions to customers around the globe. It employs 5700 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.

Tags: