Gunnebo Interim Report January-September 2016

Regulatory News:

Comments on the third quarter by Gunnebo’s (STO:GUNN) 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

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.

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