Gunnebo year-end release 2010

The CEO’s comments on 2010

“2010 has been an eventful year for Gunnebo. Order intake for Business Area Bank showed good growth and increased organically by 11%. Retail and Secure Storage reported organic improvements in order intake of 8% and 7% respectively, while the corresponding figure for continuing operations in Site Protection was an organic decrease of 4%,” said Gunnebo President and CEO Per Borgvall.

“We have continued to focus on the Get It Right programme and implemented a new strategy, reduced the Group’s fixed costs, improved margins and carried out measures to strengthen cash flow, and have thereby improved the Group’s financial position.”

”As part of the new strategy we have carried out an organisational change during the year, which also means that from the first quarter of 2011 the Group will report its results in the following four Business Areas: Bank Security & Cash Handling, Entrance Control, Secure Storage and Services. In light of the new strategy, during the year we also established an operation for sales, procurement and production in China, acquired API’s Security Products division in Australia, which doubled our net sales on this market, and divested Troax. ”

”Altogether, all the activities carried out in 2010 mean that Gunnebo is now in a stronger financial position than it has been for a very long time, with an equity ratio of 43% (33%), net debt at the end of the period of MSEK 261 (803), excluding commitments. The operating result, including discontinued operations and adjusted for items affecting comparability improved by 57 per cent to MSEK 337 (214) and the operating margin to 5.3 per cent (3.2). Least but not last I’d like to high-light the Group’s net results of 178 (-205) which very well reflects our underlying earning capacities and equals earnings per share for the whole year of SEK 2.35 (-3.40).”

The Troax operation, which was divested during the quarter, is reported separately in this report as discontinued operations, in accordance with IFRS 5.

Fourth quarter 2010

• Order intake for continuing operations decreased organically by 3% and amounted to MSEK 1,360 (1,506).
• Net sales for continuing operations increased organically by 2% and amounted to MSEK 1,625 (1,696).
• Operating profit for continuing operations excluding items of a non-recurring nature amounted to MSEK 137 (107) and the operating margin to 8.4% (6.3%).
• Operating profit for continuing operations increased to MSEK 46 (-145) and the operating margin to 2.8% (-8.5%).
• Profit for the period amounted to MSEK 146 (-162).
• Earnings per share were SEK 1.90 (-2.65).

2010 as a whole

• The equity ratio improved strongly and totalled 43% (33%).
• Net debt excluding pension commitments fell by MSEK 542, totalling MSEK 261 (803).
• Order intake for continuing operations increased organically by 4% and amounted to MSEK 5,996 (6,092).
• Organic net sales for continuing operations were unchanged and totalled MSEK 5,938 (6,278).
• Operating profit for continuing operations excluding items of a non-recurring nature amounted to MSEK 292 (192) and the operating margin to 4.9% (3.1%).
• Operating profit for continuing operations increased to MSEK 150 (-107) and the operating margin to 2.5% (-1.7%).
• Profit for the period amounted to MSEK 178 (-205).
• Earnings per share were SEK 2.35 (-3.40).
• The Board and the President propose a dividend of SEK 0.50 (SEK 0) per share.

Full report is available as attachemnt to this release.

The interim report will be presented by Gunnebo’s President and CEO Per Borgvall and CFO Fredrik Östman at a phone conference February 9 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://eventreg1.conferencing.com/webportal3/reg.html?Acc=720511&Conf=176727

On Gunnebo’s website you will also find presentation material for download one hour prior to the conference starts.

GUNNEBO AB (publ)
Group Communications

For further information, please contact:

Per Borgvall, President and CEO Gunnebo AB, tel. +46 31 83 68 00, or
Fredrik Östman, CFO Gunnebo AB, tel. +46 31 83 68 00, 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 February 9, 2011.

Gunnebo security group has an annual turnover of MEUR 650 and 5,700 employees. We are suppliers of integrated security solutions for bank, retail and sites in need of high security protection. Our experience and presence make your world safer.