Thule Group Ceo and President Magnus Welander Comments on the Year-End Report of 2015

We continued our strategic repositioning with increased focus on sports and outdoor products through the divestment of the Group’s snow chain operations. Successful product launches and close collaboration with our retailers resulted in us increasing both sales and earnings.

During the year, we also implemented a complete revamp of our European distribution centre set-up which will lead to shorter lead times. This will mean improved service to our customers as well as a redureduced environmental impact in 2016.

Strong growth in three of four product categories

During the quarter, sales grew to SEK 980m, up 3.0 percent after currency adjustment. Sales during the fourth quarter was affected by a continued sales decrease in the Bags for Electronic Devices product category. The impact is greater in this quarter as the seasonal variations mean that, as in previous years, the Bags for Electronic Devices product category accounts for a larger proportion of sales. For the full-year, sales growth was in line with our long-term financial targets for organic growth and increased 5.1 percent after currency adjustment.

Our successful efforts in increasing the number of product launches and close partnerships at retailer level through our Thule Retail Partner Program have driven strong growth in three of our four product categories. Currency adjusted growth in 2015 was as follows: Sport&Cargo Carriers up 6.7 percent; Other Outdoor&Bags up 20.7 percent and Work Gear up 6.5 percent. However, Bags for Electronic Devices posted a decline of 11.2 percent.

Even stronger in Sport&Cargo Carriers

Growth in Sport&Cargo Carriers, which accounts for 60 percent of the company’s sales, was strong in both regions. This confirms that our initiatives to strengthen our market leading position through more launches of evgreat products, improved service at retailer level, in-creased efficiency in the supply chain and enhanced consumer communication are successful.

Our drive for constant improvement will continue in 2016, driven by the breadth of new products that will be for sale in retail stores in the spring. We will also implement improvements at the distribution level in Asia and North America, and be able to fully exploit the advantages achieved through the supply chain improvements made in Europe in 2015.

New products drive Other Outdoor&Bags

The more than 20-percent growth created from new products in Other Outdoor&Bags has resulted in the category now accounting for 15 percent of total sales.

Several successful launches in Sport&Travel Bags, with a collection of hiking backpacks, and a broadening of the Active with Kids category with sport strollers were two strong contributing factors to the growth. Our RV Products category, which is focused on Europe, also developed strongly in a growing recreational vehicle market.

Tough market in the bags category

During the year, Bags for Electronic Devices was exposed to a tough market with rapidly de-clining sales of cameras and therefore camera cases and a shift toward cheaper own label products in other categories, including tablet cases. Despite a number of promising launches in, for example, backpacks for school and work, sales declined 11 percent during the year. The trend was primarily negative in the Americas region.

Work Gear continues to develop well

Work Gear continued to develop well in the fourth quarter. For the full-year, after currency adjustment, sales increased 6.5 percent and the underlying EBIT was 35 percent. We are continuing to invest in growth in parallel with conducting the previously announced strategic review of the business.

Ambitions raised with a new margin target

For the full-year, underlying EBIT increased 13.7 percent after currency adjustment to SEK 850m. This means that we achieved an operating margin of 16.0 percent, well over our previous financial target of 15 percent. Therefore, the Board has decided to adopt a new target for the operating margin of 17 percent.

An exciting 2016 lies ahead of us

Thanks to the healthy performance in 2015, we have further improved our already strong position, and I wish to thank everyone in the Thule Group who has helped make this possible.

We are now focusing on continued rapid growth, with multiple product launches, the second phase of our supply chain efficiency enhancements and a multitude of other interesting marketing initiatives.

About Thule Group Thule Group is a world leader in products that make it easy to bring the things you care for – easily, securely and in style – when living an active life. Under the motto Active Life, Simplified. we offer products within two segments: Outdoor&Bags (e.g. equipment for cycling-, water- and winter sports, roof boxes, bike trailers, baby joggers, laptop and camera bags, backpacks and cases for mobile handheld devices) and Specialty (pick-up truck tool boxes). Our products are sold in 139 markets globally. There are more than 2,000 of us working for Thule Group at nine production facilities and more than 35 sales locations all over the world. Net sales for 2015 amounted to 5.3 billion SEK. Thule Group is a public company listed at Nasdaq Stockholm. For more information, please visit www.thulegroup.com

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