Gunnebo Year-end release 2008 Gran Gezelius President and CEO - PDF document

Gunnebo Year-end release 2008 Göran Gezelius President and CEO Gunnebo AB February 6, 2009 CEO Comments To Fourth Quarter 2008 ” Both order intake and operating profit for the fourth quarter were on the same level as last year, despite significant concerns on the financial markets and in many areas of the industry. We are seeing a downturn on some markets and among certain g g customers, but increases on others thanks to our strategy of offering complete security solutions to focused customer groups. The framework contract signed with the European Commission to upgrade security at its offices in a hundred or so sites around the world is a good example of our capacity and business opportunities. Despite the banking crisis, Gunnebo’s order intake for Business Line Bank increased during the fourth quarter, partly due to some strategic orders from French banks, but orders from banks also increased in the Nordic region, the UK, Belgium and Italy.” 6 February 2009, page 2

CEO Comments To Fourth Quarter 2008 � Order intake increased to MSEK 1,767 (1,711). Organically it decreased by 2% . � Net sales amounted to MSEK 1,985 (2,010). Organically it decreased by 5% . � The operating profit amounted to MSEK 140 (146), and the operating margin to 7.1% (7.3). � Profit after tax amounted to MSEK 81 (44). � Earnings per share were SEK 1.75 (0.95). � The operating cash flow amounted to MSEK 301 (222). 6 February 2009, page 3 Items affecting comparability and Currency effects Fourth quarter MSEK 2 0 0 8 2 0 0 7 Redundancies etc (net) -20 -4 Currency effects + 17 6 Total -3 2 Full year MSEK 2 0 0 8 2 0 0 7 Redundancies etc (net) -47 -5 Currency effects -1 8 Total -4 8 3 6 February 2009, page 4

Fourth Quarter In Brief: Order Intake Order I ntake Q4 2 0 0 4 -2 0 0 8 , MSEK � Order intake decreased organically by 2 per 2 000 cent 1 500 1 000 � Order intake increased organically for Order intake increased organically for 500 Business Lines Bank and Site Protection, 0 while it decreased for Retail and Secure 2004 2005 2006 2007 2008 Storage 6 February 2009, page 5 Fourth Quarter In Brief: Net Sales � Net sales decreased organically by 5 per Net sales Q4 2 0 0 4 -2 0 0 8 , MSEK cent 2 500 2 000 � 1 500 Business Line Secure Storage showed Business Line Secure Storage showed 1 000 organically a positive development, + 5 per 500 cent, while other Business Lines showed a 0 decrease 2004 2005 2006 2007 2008 6 February 2009, page 6

CEO Comments To Full Year 2008 � Order intake increased to MSEK 6,965 (6,938). Organically it increased by 1% . � � Net sales amounted to MSEK 6 903 (7 025) Net sales amounted to MSEK 6,903 (7,025). Organically it decreased by 2% . � The operating profit amounted to MSEK 281 (349), and the operating margin to 4.1% (5.0). � Profit after tax amounted to MSEK 115 (128). 6 February 2009, page 7 CEO Comments To Full Year 2008 � Earnings per share were SEK 2.50 (2.80). � The operating cash flow amounted to MSEK 255 (66) 255 (66). � The Board and the President propose no dividend for 2008 (2007: SEK 1.60 per share). 6 February 2009, page 8

EBIT-bridge December 2007 – December 2008 MSEK Comparable EBIT Items Acquisitions/ Items EBIT Currency Volume Residual Dec 2007 affecting EBIT Divestments affecting Dec 2008 Translation & comparability comparability Transaction 2007 2008 impact 6 February 2009, page 9 Organic Growth, Net Sales and Order Intake MSEK % 25 10000 20 8000 15 6000 10 4000 5 2000 0 0 ‐ 5 ‐ 2000 ‐ 10 ‐ 4000 1 2 3 4 5 6 7 8 9 10 11 12 ‐ 15 15 ‐ 6000 6000 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7 2 0 0 8 2 0 0 8 Organic growth net sales, quarterly data (left-hand scale) Organic growth order intake, quarterly data (left-hand scale) Net sales, moving 12-months (right-hand scale ) 6 February 2009, page 10

Gross Margin And Operating Costs Excluding items affecting comparability* % % 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 2 0 0 7 2 0 0 7 2 0 0 8 2 0 0 8 2 0 0 6 2 0 0 6 Gross margin * 2006 is excluding items affecting comparability Operating costs in relation to Net Sales 6 February 2009, page 11 Profit/ Loss After Financial Items* MSEK MSEK 160 400 140 350 120 120 300 300 100 250 80 200 60 150 40 100 20 50 0 0 ‐ 20 20 ‐ 50 50 ‐ 40 ‐ 100 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7 2 0 0 8 2 0 0 8 * * Exc Exc. . I tem s I tem s affecting affecting com parability com parability Quarterly values (left-hand scale) and goodw ill and goodw ill depreciation depreciation Moving twelve months (right-hand scale) 6 February 2009, page 12

Operating Cash Flow Before financial items, tax and restructuring costs Mkr MSEK 350 8000 7000 300 6000 250 5000 200 4000 150 3000 100 2000 50 1000 0 0 ‐ 50 ‐ 1000 ‐ 100 ‐ 100 ‐ 2000 ‐ 2000 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2 0 0 6 2 0 0 6 2 0 0 7 2 0 0 7 2 0 0 8 2 0 0 8 Quarterly values 6 February 2009, page 13 In Brief October - Decem ber Full year MSEK 2 0 0 8 2007 Organic g 2 0 0 8 2007 Organic g Order intake 1 ,7 6 7 1,711 -2 6 ,9 6 5 6,938 1 Net sales 1 ,9 8 5 2,010 -5 6 ,9 0 3 7,025 -2 Operating profit/ loss 1 4 0 146 2 8 1 349 Operating margin, % 7 .1 7.3 4 .1 5.0 Profit/ loss after financial items 1 1 4 121 1 8 0 254 Profit/ loss after tax Profit/ loss after tax 8 1 8 1 44 44 1 1 5 1 1 5 128 128 Earnings per share, SEK 1 .7 5 0.95 2 .5 0 2.80 Operating cash flow 3 0 1 222 2 5 5 66 6 February 2009, page 14

Business Line Bank Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Order intake 6 0 1 554 2 ,2 7 6 2,327 Net sales 6 4 8 681 2 ,2 0 8 2,326 Operating profit/ loss 6 7 79 1 6 8 221 Operating margin, % 1 0 .3 11.6 7 .6 9.5 � 2008: ” Wait and see”-market as a consequence Share of Group sales: 32% sales: 32% of the banking crisis of the banking crisis � 2008: A number of major orders received during the year � Q4: Order intake increased organically by 4% . Particularly good development in France, UK, Belgium and EU-East 6 February 2009, page 15 Business Line Retail Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Order intake 1 5 3 202 7 3 4 803 Net sales 2 1 5 217 7 7 9 739 Operating profit/ loss 7 13 6 -5 Operating margin, % 3 .3 6.0 0 .8 -0.7 � Q4: Order intake Share of Group sales: 11% � 2008: The installed SafePay base has functioned well during the year, as have new pilot installations � 2008: Positive full year operating profit of MSEK 6 (-5) 6 February 2009, page 16

Business Line Site Protection Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 Order intake 7 2 6 670 2 ,8 5 1 2,755 Net sales 8 0 0 818 2 ,8 5 0 2,920 Operating profit/ loss 5 2 48 9 1 97 Operating margin, % 6 .5 5.9 3 .2 3.3 � Q4: Framework contract signed with the European Commission Share of Group sales: 41% sales: 41% � Q4: Market development � 2008: Indoor Perimeter Protection (Gunnebo Troax) 6 February 2009, page 17 Business Line Secure Storage Oct-Dec Full year MSEK 2 0 0 8 2007 2 0 0 8 2007 O de intake Order intake 2 8 7 2 8 7 285 285 1 ,1 0 4 1 1 0 4 1,053 1 053 Net sales 3 2 2 294 1 ,0 6 6 1,040 Operating profit/ loss 2 4 27 7 9 99 Operating margin, % 7 .5 9.2 7 .4 9.5 Share of Group � Q4: Net sales + 5 per cent sales: 16% sales: 16% � 2008: Establishment of a European Distribution Centre � 2008: Development of raw-material prices 6 February 2009, page 18

Group Liquidity and Financial Position � The Group’s liquid funds at the end of the period amounted to MSEK 169 (218) and equity totalled MSEK 1,073 (1,142). � Translation of foreign subsidiary balance sheets had an adverse effect on equity of MSEK 79, primarily due to the stronger Swedish krona against the UK pound and some other currencies the UK pound and some other currencies. � Net debt amounted to MSEK 1,967 (1,746), mainly due to exchange rate fluctuations. � A weaker Swedish krona in relation to the euro resulted in a higher balance sheet total. � Group equity did not increase to the same extent. This resulted in a fall in the equity ratio to 20% (24% ) while the debt/ equity ratio increased to 1.8 (1.5). 6 February 2009, page 19 Equity Bridge December 2007-December 2008 Equity Bridge, MSEK Translation Equity Equity Dividend Hedge Result Dec 2007 impact Dec 2008 6 February 2009, page 20

Bridge Net Debt Bridge Net debt, MSEK Net interest- Net interest- Investments Dividend bearing debt Cash from Translation- & bearing debt Dec 2007 Dec 2008 operations Hedge impact 6 February 2009, page 21 Credit Facilities Credit Facilities December 2008 Frame Drawn Bilateral Subordinated loan Short term Syndicated Loan Total December 2010 December 2011 facilities October 2010 6 February 2009, page 22