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Gunnebo Year-End Release 2013

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Comments by Gunnebo’s President and CEO Per Borgvall:

A strong quarter

"Order intake and net sales both developed stably during the fourth quarter of 2013. The order intake in Region Asia-Pacific continued its positive trend with organic growth of 26%. Region Europe, Middle East and Africa (EMEA) showed a pleasing organic growth of order intake by 6%. The increase was primarily generated on EMEA’s growth markets outside of Europe. Federal budget cuts in the US and a slowdown in the Brazilian economy had a negative impact on the quarter’s order intake in Region Americas.

For the year as a whole, the Group’s net sales outside of Europe accounted for 40% of total net sales, which is an increase of 4% on last year, despite weaker currency rates on a number of growth markets. This confirms that efforts to move the emphasis of the Group’s business from Europe to the world’s growth markets are proceeding in the right direction.

The Group’s organisation evolved during the quarter. This has resulted in a stronger region-based organisation which will lead to greater customer focus, improved market presence and an even sharper focus on growth markets. The fourth quarter of 2013 is the first quarter in which Gunnebo’s reporting is based on our three sales regions: EMEA, Asia-Pacific and Americas.

Operating profit for the fourth quarter was MSEK 103, which equates to an operating margin of 7%. Efforts to reduce the Group’s cost base in Europe have continued and the quarter has been burdened with restructuring costs totalling MSEK 30. Excluding these costs, the operating margin totalled 9%.

A number of new products were launched during the quarter. For example, a brand new product series has been developed in entrance security which has been very well received around the globe.

We confidently look forward to a 2014 where the Group’s main priorities will be continued expansion in growth markets, reduced costs in Europe, improved gross margins and to further strengthen our cash flow."

FOURTH QUARTER 2013

  • Order intake amounted to MSEK 1,313 (1,317), organically it increased by 5%.
  • Net sales totalled MSEK 1,477 (1,517), organically they were unchanged.
  • Operating profit amounted to MSEK 103 (110) and the operating margin to 7.0% (7.3%).
  • Operating profit excluding expenses of a non-recurring nature of MSEK -30 (-29) amounted to MSEK 133 (139) and the operating margin to 9.0% (9.2%).
  • Profit after tax for the period increased to MSEK 48 (2).
  • Earnings per share were SEK 0.61 (0.00).
  • Profit for the period has been burdened by expenses of a non-recurring nature for writing down a financial receivable totalling MSEK -45 (-45).

FULL YEAR 2013

  • Order intake increased to MSEK 5,514 (5,250), organically it increased by 4%. Acquired units contributed MSEK 262.
  • Net sales increased to MSEK 5,271 (5,236), organically they increased by 1%. Acquired units contributed MSEK 208.
  • Operating profit increased to MSEK 222 (179) and the operating margin to 4.2% (3.4%). Acquired units had a positive effect on operating profit of MSEK 32.
  • Operating profit excluding expenses of a non-recurring nature of MSEK 84 (87) amounted to MSEK 306 (266) and the operating margin to 5.8% (5.1%).
  • Profit after tax for the period increased to MSEK 102 (24).
  • Earnings per share were SEK 1.29 (0.26).
  • Profit for the period has been burdened by expenses of a non-recurring nature for writing down a financial receivable totalling MSEK -45 (-45).
  • The Board of Directors and the President proposes a dividend of SEK 1.00 per share (1.00).

Full report is attached to this press release.

Invitation to Telephone Conference on January 31, 11.00 (CET)

The agenda for the telephone conference will be as follows:
10:55 Call in to the conference
11:00 Review of the year-end release by Gunnebo’s President and CEO, Per Borgvall and CFO Christian Johansson
11:25 Questions and answers
11:45 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=189235

Copies of the presentation used during the conference will be available 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 January 31.

GUNNEBO AB (publ)
Group Finance

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 January 31, 2014.

The Gunnebo Security Group is a   global leader in security products, services and solutions with an offering covering cash handling, safes and vaults, entrance security and electronic security for banks, retail, CIT, mass transit, public & commercial buildings and industrial & high-risk sites.

The Group has an annual turnover of €610 million, employs 5,600 people and has sales companies in 33 countries across Europe, Middle East & Africa, Asia-Pacific and the Americas as well as Channel Partners on over 100 additional markets.

We make your world safer.

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