Lindab JANUARY MARCH 2000

Sales and market

During the first quarter of the year consolidated sales amounted to 891 (745), an increase of 20 percent. Sales increases can be observed within both business areas. 22 percentage units of the sales increases comprised increases in volumes, of which 6 per-centage units represented company acquisitions. Exchange rate deviations have had a negative effect on sales amounting to 3 percentage units. Net sales prices increased by 1 percent during the first quarter.

Sales abroad increased by 20 percent and amounted to 677 (562), which represented 76 percent (75) of consolidated sales. Sales, 12 months rolling, amounted to 3 715 (3 359); an increase of 11 percent.
Seasonal variations in the construction market usually finish up by the first quarter showing lower sales figures than the remaining three.

Lindab’s most important markets regarding sales volumes developed well during the first three months of 2000. The Swedish construction market has improved gradually during the first quarter. Marketing endeavours have resulted in Lindab increasing its market share. Within the Nordic area Denmark is doing well especially within the business area Profile. The Norwegian market is showing signs of growth after the weak development of last year. Western Europe, primarily Great Britain, has enjoyed a good development during the initial quarter. The market prerequisites in Eastern Europe have varied. The important Hungarian market has grown stronger and the markets in the Czech Republic and Rumania have had a weaker development.

The North American market is growing well again after last year’s restructuring work. The powerful sales figures on the other markets can be explained by the acquisition of Bartholet AG, the Swiss company, which was made in October 1999.

Profit
The positive trend of the third and fourth quarters of 1999 continued through the first quarter of 2000. Price adjustments have been made on some of the product groups to compensate the rising sheet-metal prices.
The operating profit for the period January – March amounted to 33 (27), which represented 3.7 percent (3.6) of sales. The profit after financial items was 26 (20).

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Business areas

Ventilation
The business area mainly comprises round duct systems for ventilation purposes; which also include ventilation accessories such as valves, grilles, diffusors, etc., which compose the finish of a duct system. Traditionally duct systems are used for the distribution of air, but they are also used for the transportation of dust, flock and the like. The business area also carries mechanical equipment for the manufacture of round duct systems and their pertaining accessories.

The sales of the business area increased by 14 percent to 610 (536), which represented 68 percent (72) of consolidated sales. The Swedish market was responsible for 20 percent (20) of sales, the other Nordic markets for 31 percent (35), the EU with the exception of Nordic countries for 35 percent (35), Eastern Europe
for 2 percent (2), USA for 9 percent (7) and the rest of the world for 3 percent (1).

The operating profit was 28 (32); which represented 4.6 percent (6.0) of the sales of the business area.
Sales have developed in a positive direction on the majority of the important markets, partly due to the acquisitions made. Sheet-metal prices have continued to rise and a number of price adjustments have been made to partly compensate for these increased expenses. However on some markets these changes do
not have any noticeable effect until after a certain lapse of time. Work with the integration and restructuring of the units acquired in 1999 has continued during the initial months of 2000. The majority of these units are now developing positively.

Profile
The business area comprises a large number of sheet-metal products used in system solutions for the building construction in-dustry; such as roof sheeting and cladding, rainwater systems, up-and-over doors, construction profiles and assembly kits for steel halls.

During the period sales increased by 34 percent to 281 (209). The Swedish market was responsible for 33 percent (36) of the sales of the business area, the other Nordic countries for 38 percent (30), EU with the exception of Nordic countries for 7 per-cent (10), Eastern Europe for 21 percent (24) and the rest of the
world for 1 percent (0).

The operating profit was 5 (–5), which represented 1.8 percent (–2.4) of sales. During the period growth in sales has been strong, and can be explained to a certain extent by the excellent demand in Denmark caused by the repair work that is now taking place after the heavy gales experienced at the end of 1999.
This has contributed to increased sales of sheet-metal products for the construction industry. At the same time growth in demand for rainwater systems, light-weight construction technology and doors has been good. The greater volumes have contributed towards an improved operating margin.

Net liability and cash flow
The consolidated net liability – the difference between interest-bearing liabilities and liquid funds – amounted to 618, compared with the 524 at the end of 1999. The greater net liability can be explained by the investments made during the period and the increase in working capital that is seasonal.

The net cash flow, from the year’s operations, amounted to –94 (–98). The consolidated liquid funds amounted to 89 (134). Liquid funds, inclusive of unutilised overdraft facilities, amounted to 1 032 (615). The consolidated equity amounted to 1 259 (1 116). The equity/assets ratio was 47 percent (45).

Investments
The rate of investment has remained high during the first quarter. For the period January – March investments, excluding company acquisition, amounted to 86 (57). 42 (14) were invested in property, primarily pertaining to acquired production premises in Switzerland and the construction of production and warehousing premises in Sweden and Croatia. 44 (43) were invested in machinery, equipment and goodwill.
The investments comprised 28 (22) in Sweden and 58 (35)
abroad.

Option programme
The Board of Directors has decided to offer some twenty senior officers the opportunity of acquiring synthetic options in Lindab AB. Members of the Board are not included in the option programme.

The right to subscribe to options is divided into two categories; one with the right to subscribe to 3 000 options and the other to 1 500, and comprises a total of 45 000 options. The options have a term of three years.

To a certain extent the option programme supersedes the bonus programme which ceased to exist in 1999. This year’s programme is the introduction of a multi-year rolling option programme which will, during the course of 2001, be extended to cover more officers and the allotment of options will increase.

The exercise price of the options will be about 120 percent of the average buying rate for Lindab shares on the
Stockholm Stock Exchange during the period 17 May 2000 up to and including 23 May 2000. The options will be acquired at market price, where the valuation will be performed in accordance with Black-Scholes valuation modell by the Corporate Finance Department of Pricewaterhouse Cooper.

Personnel

At the end of the first quarter the number of employees was 3 025, compared with the 3004 at the turn of the year. During the period the number in Sweden increased by 20 to 1 021.

Share data
In the first three months of the year the profit per share amounted to SEK 0.75, compared with the SEK 0.54 of the same period of 1999. The profit per share during the last 12-month period was SEK 9.00 (8.46). Equity per share amounted to SEK 52.45 (46.50). The number of shares amounted to 24 000 000. At the end of the period the listed price for Lindab shares on the Stockholm Stock Exchange was SEK 97.50. At the turn of the millennium the price was SEK 98.00.

Outlook for 2000
During the beginning of the year development has been positive. The previously made forecast of sales exceeding 4 000 remains. The development of profit should also remain good, in spite of a certain uncertainty prevailing regarding continued price increases for sheet metal and the rate in which Lindab can compensate for these. Grevie, 27 April 2000

LINDAB AB (publ)
Carl-Gustaf Sondén
Managing Director and Chief Executive Officer

This report has not been subjected to a special examination by the company auditors.

Today the Lindab Group is a world-wide corporation which operates at more than a hundred locations in twenty countries. Operations are primarily composed of the manufacture and sales of sheet-metal products within two business areas. The major business area is Ventilation in which Lindab has a world-leading position within the round duct system product area. The other business area, Profile, comprises a broad product range for the building industry; including roof sheeting and cladding, rainwater systems, up-and-over doors, roof-safety products and construction profiles.

For further information see Lindab’s web site: www.lindab.com

Schedule for financial information

The interim and year-end reports will also be published on Lindab’s web site www.lindab.com
11 August 2000 Interim report for period 1 January – 30 June 2000
26 October 2000 Interim report for period 1 January – 30 September 2000
16 February 2001 Year-end report for 2000

The reports will be available in Swedish, Danish and English and can be ordered from the address below

The full interim report including tables is available to download from the enclosed link.