Gunnebo Interim Report January-September 2016

Comments on the third quarter by Gunnebo’s President and CEO, Henrik Lange

For the third quarter we report sales of MSEK 1,448 and an operating margin of
7.3%. In addition we have simplified our organisation by integrating
production into the relevant product group, and have appointed a new SVP for
Region EMEA. This is to ensure we are better equipped to grow our business and
continue to improve our profitability.

DEVELOPMENT OF OUR BUSINESS

Region Asia-Pacific continued to show organic growth of sales. The order intake
has also been developing positively in the quarter. The positive development of
sales was primarily driven by China and India. In China, we saw good development
in Entrance Security. In India, sales of safes to producers of ATM performed
well and the rest of the bank market also developed cautiously positive.

Region EMEA development of sales was unchanged. Sales were good predominantly in
the Middle East and Southern Europe, whereas they were weaker in France and in
the UK. Sales were unchanged for the quarter, yet the EBIT margin continued to
improve due to the effects of restructuring activities.

In Region Americas, sales were down in the quarter, mainly due to continued weak
demand in Latin America and delayed deliveries to American authorities. However
order intake in the region has been strong.

For Cash Management and Entrance Security, the positive sales development
continued in the third quarter and a number of interesting orders have been
signed. In Europe, for example, installations of the closed cash management
solution, SafePay, have continued and several large customers have placed new
orders.

In Entrance Security the positive sales development to the mass transit segment
has continued in the third quarter with the delivery of several orders for metro
systems in, for example, China and Greece.

In Safes & Vaults, sales of safes to producers of ATM have remained positive,
while sales of certified safes were slightly down. However it is positive that
the order intake for certified safes increased during the quarter.

In Electronic Security, a major bank in Mexico signed a three-year service
agreement for the delivery of products and services to all of its national
branches. On the whole, sales during the quarter were somewhat below last year,
due to weaker sales in France and the UK.

Q3 FINANCIAL RESULTS

For the third quarter, we report an operating profit of MSEK 105, excluding non
-recurring items, and an operating margin of 7.3%. Order intake was good and
with continued improvement of the operating margin in EMEA together with the
simplified organisation, we are equipped to grow more quickly and continue to
improve our profitability.

THIRD QUARTER 2016


  · Net sales amounted to MSEK 1,448 (1,462), organically they decreased by -1%.
  · Operating profit amounted to MSEK 91 (90) and the operating margin increased
to 6.3% (6.2).
  · Operating profit excluding items of a non-recurring nature amounted to MSEK
105 (108) and the operating margin to 7.3% (7.4).
  · Profit after tax for the period increased to MSEK 51 (48).
  · Earnings per share increased to SEK 0.65 (0.62).
  · The free cash flow amounted to MSEK 18 (23).

JANUARY-SEPTEMBER 2016

  · Net sales amounted to MSEK 4,312 (4,375), organically they were unchanged.
  · Operating profit increased to MSEK 224 (199) and the operating margin
increased to 5.2% (4.5%).
  · Operating profit excluding items of a non-recurring nature increades to MSEK
266 (248) and the operating margin to 6.2% (5.7%).
  · Profit after tax for the period improved to MSEK 113 (88).
  · Earnings per share improved to SEK 1.46 (1.13).
  · The free cash flow improved to MSEK 52 (-162).



Full report is attached to this press release.
Invitation to Telephone Conference on October 24, 09.30 (CET)

To participate in the conference, please sign up using the link below:

https://eventreg2.conferencing.com/webportal3/reg.html?Acc=467472&Conf=222261
Once registered, you will receive a phone number and a password.

09.25  Call in to the conference
09.30  Review of the interim report by Gunnebo’s President and CEO, Henrik Lange
09.50  Questions and answers
10.00  Closing of telephone conference

Copies of the presentation will be available 30 minutes prior to the telephone
conference on www.gunnebogroup.com. Attending from Gunnebo AB are President and
CEO Henrik Lange, CFO Susanne Larsson and Communication Director Karin
Wallström.

A recording of the telephone conference will be available on
www.gunnebogroup.com from late afternoon October 24.

GUNNEBO AB (publ)
Group Communication

For more information, please contact:
Henrik Lange, President & CEO Gunnebo AB, tel. +46 10 2095 026, or
Susanne Larsson, CFO Gunnebo AB, tel. +46 10 2095 026, or
Karin Wallström, Communication Director Gunnebo AB,
tel. +46 708 283339

 www.gunnebogroup.com
This information is information that Gunnebo AB is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was submitted for
publication, through the contact persons set out above, at 08.01 CET on October
24, 2016.