Interim report January - March 2016

1 January - 31 March 2016 1)

● Revenue increased 3 per cent to SEK 1,424 M (1,382) and has been negatively
affected by Easter. Excluding the acquisition of Opus Equipment, revenue
increased 1 per cent. Adjusted for currency effects and calculated on the
comparable number of workdays, revenue increased 9 per cent. Sales in comparable
units rose 4 per cent.
● EBITA amounted to SEK 149 M (169) and the EBITA margin was 10 per cent (12).
● EBIT amounted to SEK 121 M (142) and the EBIT margin was 9 per cent (10).
MECA’s export business to Denmark had a negative impact of SEK 5 M on EBIT.
● The gross margin was 54.2 per cent (55.5).
● Earnings per share, before and after dilution, amounted to SEK 2.28 (2.88).
● Cash flow from operating activities rose to SEK 30 M (neg: 47), of which
discontinued operations comprised a negative amount of SEK 3 M (neg: 84).
● Net debt at the end of the period amounted to SEK 1,624 M (1,693), compared
with SEK 1,626 M at year-end.

1) During the first quarter of 2015, the last two stores in Denmark were
discontinued and the Danish store operation is presented in the 2015-2016
interim reports in accordance with IFRS 5, Non-current Assets Held for Sale and
Discontinued Operations. The Danish store operations were previously included in
the MECA segment. With the exception of cash flow and net debt, all amounts
pertain to continuing operations.

CEO’s comments
Favourable underlying growth but weaker result

Underlying growth for Mekonomen Group remained favourable in the first quarter,
despite negative Easter effect. EBIT was lower compared with the first quarter
of 2015, a main cause being a weak EBIT in Mekonomen Sweden.

The Group’s revenue rose 3 per cent in the first quarter, representing
favourable underlying growth of 9 per cent. As in the fourth quarter, growth was
driven in the Group primarily of sales to affiliated and other workshops. Sales
of our proprietary brand, ProMeister, was good and in the first quarter, sales
of ProMeister accounted for some 12 per cent (10) of the Group’s combined spare
parts sales.
EBIT declined to SEK 121 M (142). In addition to the negative effect of Easter,
operating profit was affected by weak profitability of Mekonomen Sweden, the
loss in Denmark and a lower gross margin of the Group, mainly driven by an
unfavourable product mix.
In the first quarter Mekonomen Sweden stands for the largest negative impact on
EBIT, where negative effect of lower gross margin is not sufficiently offset by
increased sales. After the reorganisation that was implemented in late 2015, we
still do not see that new working methods and the introduction of retail store
system have the desired effect on sales.

The negative product mix effect is mainly a seasonal effect in the first
quarter.

The loss in Denmark during the first quarter was halved, compared with the end
of 2015, and we have a continued focus on cost efficient increase of sales in
Denmark.
MECA’s EBIT in the first quarter, excluding Denmark and the acquired business
Opus Equipment, was largely in line with the preceding year, despite fewer
workdays. EBIT for Sørensen og Balchen, in local currency, was in line with the
preceding year. Mekonomen Norway had a lower gross margin due to consumer
campaigns, which adversely affected EBIT.
We expect conditions for a slightly stronger overall market in 2016, primary as
a consequence of favourable new car sales in the recent years. For Mekonomen
Group, the main potential for a stronger market is linked to a growing fleet of
cars aged three years and older.

Focus 2016
In 2016, the sales growth is our main focus. Our cost reduction programs have
been implemented according to plan and in 2016 we put our energy to increase the
total sales. We continue to see the most potential for growth in our core
business to B2B customers. A particular focus is the growth in Mekonomen Sweden,
where new working methods with increased presence at customer is expected to
give positive effects. Parallel to this, we will intensify our marketing efforts
in Mekonomen Sweden. Continued priority in 2016 is to cost effective increase
sales in Denmark.
Our projects for the group-wide e-commerce platform for B2B and B2C, and for
enhancing quality in our workshops continue as planned.
With our combination of strong offerings, new initiatives and a customer focus,
Mekonomen Group is positioned for profitable growth in 2016. Magnus Johansson
President and CEO

For further information, please contact:
Magnus Johansson, President and CEO, Mekonomen AB, tel: +46 (0)8-464 00 00
Per Hedblom, CFO Mekonomen AB, tel: +46 (0)8-464 00 00
The information in this interim report is such that Mekonomen AB (publ) is
obligated to publish in accordance with the Securities Market Act. The
information was submitted for publication on 11 May 2016 at 7:30 a.m.