Gunnebo develops in the right direction

Gunnebo's President and CEO Per Borgvall commented: "The fourth quarter represented a strong end to a year that has continued to develop the Group in the right direction. The good profit development, with a fourth quarter operating margin of 9.4% excluding non-recurring costs, combined with a greater focus on working capital, contributed to a strong cash flow for both the quarter and the year as a whole.

Sales decreased organically by 2% during the quarter compared to the previous year. Our growth regions Asia-Pacific (APAC) and Americas showed an organic growth of 5% and 2% respectively. Sales in Region Europe, Middle East & Africa (EMEA) decreased by 4% organically. The shift of the Group's focus to growth markets, which is of great importance bearing in mind the market conditions in Europe, is continuing. The markets outside of Europe accounted for 43% of total sales during the quarter, an increase of 5 percentage points on last year.

Efforts to adapt the Group's costs in Europe have continued, and there were non-recurring costs of MSEK 32 during the quarter. The desired effects are being achieved and we will continue to cut costs in the Group during 2015. Order intake fell by 13% organically during the quarter, mainly due to a strong comparison quarter in 2013 and the impact of major projects. Order intake in Region Americas was up 18%, whilst EMEA and APAC had a lower order intake. In APAC order intake has been affected primarily in India due to higher capital adequacy requirements from the bank sector, but underlying demand from the market remains. In EMEA, willingness to invest continues to be restrained.

During the quarter, the acquisitions in Mexico and the UK have begun to be integrated and have contributed to sales and operating profit."

FOURTH QUARTER 2014

• Order intake amounted to MSEK 1,266 (1,313), organically a decrease of 13%.
• Net sales totalled MSEK 1,574 (1,477), organically a decrease of 2%.
• Operating profit increased to MSEK 116 (103) and the operating margin to 7.4% (7.0%).
• Operating profit excluding items of a non-recurring nature of MSEK -32 (-30) increased to MSEK 148 (133) and the operating margin to 9.4% (9.0%).
• Profit after tax for the period increased to MSEK 88 (48).
• Earnings per share were SEK 1.15 (0.61).
• Free cash flow increased to MSEK 271 (160).
• On October 10 2014 Gunnebo acquired British electronic security company, Clear Image.
• After the closing day, Henrik Lange was appointed as President and CEO.