CEO Comments Profit for the quarter lower than previous year - PDF document

Gunnebo interim report January-Septem ber 2 0 1 2 CEO Comments  Profit for the quarter lower than previous year  Quarter burdened by non-recurring items of MSEK 46  Continued strong growth in Asia  India: 47%  Good development of sales in Americas  Canada and acquired business in Brazil and US  Weak development on most European markets  General trend: Postponed investment decisions  Continued cost-savings in Europe during Q4  Strategic activity: Acquisition of US Hamilton Safe  Continued strong financial position, equity ratio 39% 25 October 2012, page 2

Third Quarter 2012  Order intake amounted to MSEK 1,084 (1,175), in constant currency rates it decreased by 1% . Acquired units contributed MSEK 79.  Net sales increased to MSEK 1,280 (1,247), in constant currency rates they increased by 8% . Acquired units contributed MSEK 107.  Operating profit amounted to MSEK 17 (61) and the operating margin to 1.3% (4.9% ). Acquired units had a positive effect on operating profit of MSEK 21.  Excluding non-recurring items of MSEK 46, operating profit amounted to MSEK 63 (74) and operating margin to 4.9% (5.9).  Profit after tax for the period totalled MSEK 1 (44).  Earnings per share were SEK -0.02 (0.58).  Acquisition of US’s Hamilton Safe on August 8 25 October 2012, page 3 January-September 2012  Order intake increased to MSEK 3,933 (3,868), in constant currency rates it increased by 3% . Acquired units contributed MSEK 155.  Net sales increased to MSEK 3,719 (3,645), in constant currency rates they increased by 4% . Acquired units contributed MSEK 158.  Operating profit amounted to MSEK 69 (158) and the operating margin to 1.9% (4.3% ). Acquired units had a positive effect on operating profit of MSEK 24.  Excluding non-recurring items of MSEK 58, operating profit amounted to MSEK 127 (179) and operating margin to 3.4% (4.9).  Profit after tax for the period totalled MSEK 22 (77).  Earnings per share were SEK 0.26 (1.02). 25 October 2012, page 4

Business Area Bank Security & Cash Handling July-Sept Jan-Sept Full year MSEK 2012 2011 2012 2011 2011 2010 Order intake 513 525 1,718 1,661 2,215 2,477 Net sales 602 534 1,652 1,586 2,276 2,427 Operating profit/loss excl. non-recurring items 46 28 92 86 167 199 Operating margin excl. non-recurring items, % 7.6 5.2 5.6 5.4 7.3 8.2 Non-recurring items -4.0 -1.0 -4.0 -3.0 -20.0 -33.0 Operating profit/loss 42 27 88 83 147 166 % of Group sales: 44% Market Developm ent  Continued strong development in Asia, especially India  Good development in South Africa, Canada and Brazil during Q3  In Europe, development has been good in France, the Netherlands, Denmark and Belgium  Weaker development on other markets in Europe  Order intake and sales for the full period: + 6% * Profit analysis During the third quarter, acquired operations made a positive contribution of some MSEK 19 to the quarter’s operating profit. Furthermore, the weak development on markets in Europe and Africa was compensated by the strong development of operating profit on other markets. 25 October 2012, page 5 * Growth in constant currency rates 8 August: Gunnebo Acquires Hamilton Safe W hy has Gunnebo acquired Ham ilton Safe?  A quality company and a profitable business – will improve Gunnebo’s overall EBIT  Perfect strategic fit  Product portfolio (UL-graded/ rated)  Customers: Bank and Government  Covers up a ”white spot” on the map for Gunnebo  Solid platform for expansion of selected Gunnebo solutions into the US Profitable business w ith opportunity to introduce Gunnebo solutions into the US m arket! 25 October 2012, page 6

Hamilton Safe Companies: Background  Started manufacturing of bank security equipment in 1967  Based in Cincinnati, Ohio, USA  Majority of sales made in the US and Canada  7 business units of which 5 production facilities  Sales through a + 80 dealer network 25 October 2012, page 7 Company Overview  Banking, 70% of sales  Government etc., 30% of sales  Annual sales: MUSD 70 (2011)  Employees: 220  Profitability: Well above Group targets 25 October 2012, page 8

Business Area Secure Storage July-Sept Jan-Sept Full year MSEK 2012 2011 2012 2011 2011 2010 Order intake 182 199 589 545 736 748 Net sales 196 196 581 531 731 750 Operating profit/loss excl. non-recurring items 4 2 17 10 16 48 Operating margin excl. non-recurring items, % 2.0 1.0 2.9 1.9 2.2 6.4 Non-recurring items 0.0 0.0 0.0 0.0 -1.0 -10.0 Operating profit/loss % of Group sales: 16% 4 2 17 10 15 38 Market Developm ent  Good development of order intake and net sales  Order intake for the full period: + 9% *  Net sales for the full period: + 11% *  Strong growth in Asia – distributor based sales  Good development in UK, France, Belgium, Spain  Weaker development on other markets, especially during Q3 Profit analysis Both operating profit and the operating margin strengthened during the year, mainly due to a more favourable market and product mix 25 October 2012, page 9 * Growth in constant currency rates Business Area Global Services July-Sept Jan-Sept Full year MSEK 2012 2011 2012 2011 2011 2010 Order intake 192 208 914 899 1,144 1,120 Net sales 271 272 841 819 1,120 1,120 Operating profit/loss excl. non-recurring items 26 34 73 98 138 107 Operating margin excl. non-recurring items, % 9.6 12.5 8.7 12.0 12.3 9.6 Non-recurring items -6.0 0.0 -6.0 0.0 -17.0 -16.0 Operating profit/loss 20 34 67 98 121 91 % of Group sales: 23% Market Developm ent  Good development of order intake during the full period  Order intake for the full period: + 3% *  Sales of contract-based service continue to increase  Markets in Asia, Americas, UK and Italy has developed very well Profit analysis Operating margin for the full period is lower than the same period last year. During the third quarter, operating profit has also been burdened by costs for making the service delivery process more efficient. 25 October 2012, page 10 * Growth in constant currency rates

Business Area Entrance Control July-Sept Jan-Sept Full year MSEK 2012 2011 2012 2011 2011 2010 Order intake 163 173 502 538 713 654 Net sales 158 180 466 511 720 691 Operating profit/loss excl. non-recurring items 9 10 11 26 51 35 Operating margin excl. non-recurring items, % 5.7 5.6 2.4 5.1 7.1 5.1 Non-recurring items -27.0 0.0 -28.0 0.0 -15.0 -36.0 Operating profit/loss -18 10 -17 26 36 -1 % of Group sales: 12% Market Developm ent  Order intake has strengthened throughout the year  Order intake Q3: Unchanged*  Order intake full period: -6% *  Good development in China, Germany, Middle East, Americas and Eastern Europe Profit analysis The result during the quarter is in line with that of the previous year. It has been negatively impacted by MSEK 22 related to an arbitration award, whereby Gunnebo was ordered to pay compensation to a former commercial agent, as well as by MSEK 5 related to costs for moving of operations. 25 October 2012, page 11 * Development in constant currency rates Developing Businesses July-Sept Jan-Sept Full year MSEK 2012 2011 2012 2011 2011 2010 Order intake 34 70 210 225 283 272 Net sales 53 65 179 198 290 275 Operating profit/loss excl. non-recurring items -13 -3 -38 -26 -35 -32 Operating margin excl. non-recurring items, % -24.5 -4.6 -21.2 -13.1 -12.1 -11.6 Non-recurring items 0.0 0.0 0.0 0.0 0.0 -5.0 Operating profit/loss -13 -3 -38 -26 -35 -37 % of Group sales: 5% SafePay  Good order intake on the Northern European markets, weaker in Southern Europe. In Q3 order intake has been weak in general due to postponed investment decisions  Operating profit/ loss continues to be affected by market investments and continued work on quality improvements Gatew ay  Stable development of order intake in Q3. This is mainly explained by the prevailing economic uncertainty on several large markets in Europe, which has resulted in a lower rate of investment in the retail sector.  The full period’s lower operating profit is explained by lower sales volumes and negative currency effects. 25 October 2012, page 12