Gunnebo Interim Report April-June 2016

Comments on the second quarter by Gunnebo’s President and CEO, Henrik Lange:
"For the second quarter, we report an improved operating margin of 7.0% (6.7).
For Region EMEA the operating margin was 4.9%, an improvement of 1.3 percentage
points.
DEVELOPMENT OF OUR BUSINESS
Region Asia-Pacific showed positive organic growth during the quarter. The large
order for OKI Pulp & Paper of Indonesia, received during the second quarter of
2015, continued to have a positive impact on sales and profits. It is also
evident that business with public sector banks in India has stabilised.
In Region EMEA, sales increased in France during the quarter. However demand was
weak in the UK, which has had a negative impact on turnover.
In Region Americas, sales were down in the quarter due to delays in deliveries
to major American banks and weaker demand in Latin America.
The positive trend in Cash Management sales continued in the second quarter. We
can see that interest in solutions that streamline the handling of cash is
steadily increasing in all regions. A first order for our closed cash management
system, SafePay, was signed in South Africa during the quarter, for example. In
Canada, Gunnebo received its first order for automated cash management from a
retail chain.
In Entrance Security the mass transit segment had a strong quarter, with large
orders received for the metro in Athens, Greece and a metro line in Beijing,
China. We also received several orders in France for the installation of high
-security doors for public buildings and retail. Overall, Entrance Security
sales fell slightly during the quarter, primarily due to deferred deliveries in
a number of projects.
There were varying trends within Safes & Vaults, where the positive development
for sales of ATM safes continued into the second quarter. Sales of graded safes
continued to fall, however, due to consolidation in the banking sector.
Sales of Electronic Security declined slightly during the quarter. This part of
our offering is mainly sold on markets in Region EMEA and Region Americas.
Several important orders were signed during the period with customers in both
the private sector and public administration in Europe.
Q2 FINANCIAL RESULTS
We report an improved operating profit of MSEK 103 (102), despite negative
currency effects of MSEK -8. Free cash flow improved by MSEK 69, and the
operating margin for the period excluding non-recurring items was 7%."

SECOND QUARTER 2016

  · Net sales amounted to MSEK 1,474 (1,516), organically they decreased by 1%.
  · Operating profit amounted to MSEK 80 (80) and the operating margin increased
to 5.4% (5.3%).
  · Operating profit excluding items of a non-recurring nature increased to MSEK
103 (102) and the operating margin to 7.0% (6.7%).
  · Profit after tax for the period totalled MSEK 42 (51).
  · Earnings per share were SEK 0.55 (0.64).
  · The free cash flow improved to MSEK 27 (-42).

JANUARY-JUNE 2016

  · Net sales amounted to MSEK 2,864 (2,913), organically they were unchanged.
  · Operating profit increased to MSEK 133 (109) and the operating margin
increased to 4.6% (3.8%).
  · Operating profit excluding items of a non-recurring nature improved to MSEK
161 (140) and the operating margin to 5.6% (4.8%).
  · Profit after tax for the period improved to MSEK 62 (40).
  · Earnings per share improved to SEK 0.81 (0.51).
  · The free cash flow improved to MSEK 34 (-185).

 Full report is attached to this press release.
Invitation to Telephone Conference on July 19, 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 July 19.

GUNNEBO AB (publ)
Group Communication

For more information, please contact:
Henrik Lange, President & CEO Gunnebo AB, tel. +46 10 2095 032, or
Susanne Larsson, CFO Gunnebo AB, tel. +46 10 2095 032, or
Karin Wallström, Marketing & Communication Director Gunnebo AB, tel. +46 708
283339, or e-mail karin.wallstrom@gunnebo.com

 www.gunnebogroup.com
Gunnebo discloses the information provided herein pursuant to the Swedish
Securities Markets Act and/or the Financial Instruments Trading Act. The
information was submitted for publication at 08.01 CET on July 19, 2016.
The Gunnebo Group is a global leader in security products, services and
solutions with an offering covering cash management, safes and vaults, entrance
security and electronic security for banks, retail, CIT, mass transit, public &
commercial buildings and industrial & high-risk sites.

The Group has an annual turnover of €660 million, employs 5,500 people and has
sales companies in 32 countries across Europe, Middle East & Africa, Asia
-Pacific and the Americas as well as Channel Partners on over 100 additional
markets.

We make your world safer.