TROAX: INTERIM REPORT JANUARY - MARCH 2015

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FIRST QUARTER

  • Sales increased 38 percent to 24,7 (17,9) MEUR, the acquired business Satech represents 24 percent units of this increase. The organic growth (excluding Satech) was 15 percent.
  • Order intake was slightly higher than Sales.
  • Operating profit increased to 5,0 (2,2) MEUR.
  • Operating margin increased to 20,2 (12,3) percent.
  • Adjusted operating margin increased to 20,2 (13,4) percent, mostly explained by higher volumes.
  • Earnings per share was 0,11 (0,04) EUR.
  • Troax was listed on the NASDAQ Stockholm on 27th of March.

TROAX GROUP FIGURES

CEO COMMENTS

Troax continued the positive trend from 2014 during first quarter, with increased order levels and results. The organic growth increased during the first quarter by 13 percent, for comparable units in the same period last year. The development has been especially positive in the UK and the Nordic countries. Our development in the New markets has improved during the period, albeit from a low level. The total order levels increased by 18 percent, including the acquired company Satech compared on a pro forma basis, with the corresponding quarter last year.

Excluding acquisition, sales increased with 15 percent, compared with same period last year. We estimate, the general market has continued to grow during this quarter, and we also believe we have continued to take market shares, especially from smaller players in the local markets.

The positive result development has continued during the first quarter. This is mainly explained by the positive volume development and continued good capacity utilization in our manufacturing units. The adjusted operating profit amounted to 5,0 MEUR for the period, which is approximately double the level of Q1 2014. Satech accounts for approximately 1,0 MEUR of the result for the quarter. The integration of Satech is developing according to plan and the company has delivered a significantly higher result than last year.

There is no significant currency impact in the result for the period. The Troax Group continues to hedge a main part of the net currency flow, mainly Euro vs. SEK, for up to 18 months. The Group converted the currency used for accounting to Euro as per 1st of January 2015.

The Working capital has been stable during the quarter, with a certain increase of receivables due to the relative high invoicing level. We have continued our good cash flow generation, even if we, during this first quarter, started to pay some parts of the main investment in the new paint line that will be finished during Q1 2016. In accordance with the agreement that was made in connection with the stock exchange listing, we intend to make a one off amortization of 10M€ of our bond loan during this year.

Troax Group was listed on the NASDAQ Stockholm on the 27th March and therefore has a high number of new shareholders. The offer was oversubscribed several times, which of course is positive and indicates a good confidence from the market. We are quite aware of the new requirements and expectations the shareholders and other parties are demanding on us and will try to live up to these expectations in a positive way.

We do not make any forecast for the whole year. In judging the market growth for the remainder of the year, you should note the Group ended 2014 in a good way.  

Thomas Widstrand, CEO and President

PHONE CONFERENCE

Invitation to presentation of the first quarter result:

Thomas Widstrand, CEO presents the result on a phone conference on the 8th May 2015 at 10:00 CET. Conference will be held in English. For more information see www.troax.com.

This information is in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments
Trading Act and/or the regulations of NASDAQ Stockholm. The information was submitted for publication at May 8, 2015 at 08.00
.

Thomas Widstrand
President and CEO
Troax Group AB
Box 89
330 33 Hillerstorp
46 (0)370-82831
http://www.troax.com
thomas.widstrand@troax.com

About Troax

Troax is the leading global supplier of indoor perimeter protection (“metal-based mesh panel solutions”) for the market segments: Automation & Robotics, Material Handling & Logistics and Property Protection. Troax develops high quality and innovative safety solutions to protect people, property and processes.

Troax Group AB (publ), Reg. No. 556916-4030, has a global organisation with an unparalleled sales force and efficient logistics setup, enabling local presence and short delivery times in 31 countries. In 2014 Troax net sales amounted to around EUR 90 million and the number of employees amounted to about 400 persons. The Company’s head office is located in Hillerstorp, Sweden.

www.troax.com

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