Capital Market Day 2014Gunnebo has an industrial heritage stretching back 250 years. 1764 ... Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 Post-employment benefits Net Debt, excluding Post-employment

© Gunnebo Security Group 3 March, 2014 page 1

Capital Market Day 2014

Per Borgvall, President & CEO


08.30-09.00 Introduction & Strategic update P. Borgvall

09.00-09.15 Financial Update C. Johansson

09.15-09.40 Region EMEA M. Andreasen

09.40-09.55 Region Americas T. Wängberg

09.55-10.15 Region Asia-Pacific P. Borgvall

10.15-10.25 Q & A

10.25-10.40 Coffee

10.40-10.50 Introduction to stations C. Johansson

10.50-12.00 Stations

Public & Commercial Buildings and

Mass Transit: Entrance Control R. Hermans

Retail: Cash Handling A. Almlöf/T. Gunnesson

Bank: Electronic Security K. Wallström/H. Balaguer

12.00-12.15 Summing up P. Borgvall

12.15-12.30 Q&A

12.30-13.30 Lunch

Today’s Agenda


The Gunnebo Security Group

The Leading Global Provider of a Safer Future

Annual turnover: 5,300 MSEK

Employees: 5,600 people

Headquarters: Gothenburg, Sweden

Sales Companies: 33 countries across Europe,

the Middle East, Africa, Asia-Pacific and Americas

Channel Partners: 100 additional markets

Listed company on the Swedish Stock Exchange

since 1995


Our Heritage

Gunnebo has an industrial heritage stretching back 250 years.

1764

Forge opens in small village of Gunnebo in south-east Sweden.

1889

Gunnebo Engineering is formed with several metal-working factories.

1995

Gunnebo Industries is acquired by venture capital company, HIDEF. Gunnebo AB becomes listed on the Swedish stock exchange.


Recent History and Business Focus

1995-2005 | Acquisitions

Gunnebo AB enters into a period of acquiring multiple companies from around the world which specialise in security solutions.

2005-2008 | Integration

The acquisitions are integrated into the Group and adopt the Gunnebo name.

2009 - 2010 | Strategy and profitability

Gunnebo redefines its vision to become the leading global provider of a safer future and starts to invest in growth markets like China.

2011-present | Profitable growth and Delivery

Gunnebo continues to focus on growth markets, expanding in India, South Korea, Thailand, Malaysia, USA, Mexico and Brazil.


Our Six Customer Segments

Bank Customers include Bank of India, Citibank, HSBC, ING Bank, LCL, Nordea, Manappuram Finance, State Bank of India and Standard Bank.

Retail Customers include Aldi, COOP, Leroy Merlin, Smart Club, Catwalk and Statoil.

CIT Customers include Brinks, G4S, Loomis and RCCS.


Our Six Customer Segments

Mass Transit Customers include the public transport networks of Barcelona, Beijing, Bogotá, New Delhi and Shanghai and airports in Bahrain, Boston, Dubai, London, Madrid, Paris, Sydney and Warsaw.

Public & Commercial Buildings Customers include the European Commission, NATO, the UK Home Office as well as American Express, Microsoft, Nestlé, Shell and Vodafone.

Industrial & High-Risk Sites Customers include manufacturing plants, logistics centres, power plants, prisons, casinos and stadia.


Our Five Global Solution Offerings

Cash Handling

Solutions for closed cash handling, cash deposit, cash recycling, note counting and cash transfer.

Entrance Security

Ticket gates, interlocking doors, security doors, speed gates, turnstiles and airport security gates.

Safes and Vaults

Safes, fire safes, deposit safes, vaults, modular vaults and automated safe deposit lockers.


Our Five Global Solution Offerings

Electronic Security

Solutions for surveillance, access control, intrusion detection, electronic locking and electronic article surveillance.

Security Services

Security monitoring, hosting, security audits, security maintenance and upgrade & retrofit management.


Adjusted Organisation Strengthening Regions and Customer Focus

President & CEO

Per Borgvall

EMEA

Morten Andreasen

Asia-Pacific

Per Borgvall

Americas

Tomas Wängberg

CFO/CIO

Christian Johansson

Human Resources

Magnus Lundbäck

Marketing & Service

Anna Almlöf

Group Operations

Lars Thorén

Entrance Control

Robert Hermans

//midas.gunnebo.net/DavWWWRoot/sites/hr/org/Organisation Charts/Europe Middle East.pptx

http://midas.gunnebo.net/sites/hr/org/Organisation Charts/Asia Pacific.pptx

http://midas.gunnebo.net/sites/hr/org/Organisation Charts/Americas.pptx

http://midas.gunnebo.net/sites/hr/org/Organisation Charts/Marketing and Service.pptx

http://midas.gunnebo.net/sites/hr/org/Organisation Charts/Group Operations.pptx

http://midas.gunnebo.net/sites/hr/org/Organisation Charts/Group Operations.pptx


Our Markets & Channel Partners

Gunnebo operates across three regions.

To increase global coverage, Gunnebo also has a network of Channel Partners in over 100 markets around the globe.

EMEA

Asia-Pacific Americas


Our Brands

As well as the Gunnebo brand, we have a number of strong global and local brands.

Safes and vaults Founded 1835 in UK.

In Gunnebo portfolio

since 2000.

Safes and vaults Founded 1825 in France.

Acquired in 1999.

EAS Founded 1984 in Sweden.

Acquired in 2004.

Safes Founded 1967 in USA.

Acquired in 2012.

Fire protection Founded 1903 in India.

Acquired in 2000.

Closed cash handling Created 2001 in Sweden.

Safes Founded 1932 in India.

Acquired in 2000.


Total value estimated to some 82.9 BUSD

Expected Annual Growth: 7 per cent

A very fragmented market

Main drivers

Economic development

Increased standards of living

Urbanisation

The Global Security Market*

*Source: Freedonia 2014


Strong performance in Asia-Pacific and Americas – particularly in India and the USA – and stabilisation in Europe

Organic growth in order intake of 4% and net sales of 1%

Point of gravity shift continued successfully

Acquisition in South Korea

Integration work has increased Hamilton profitability

Restructuring activities to reduce European cost base continued

Operating margin improved

Strong operating cash flow and solid financial position

Highlights 2013


The Gunnebo Group: Where Are We Now?

Focus and momentum is there

We have a clear strategy

Moving the Point of Gravity

Well on our way to achieving our overall

financial goals

Investment in people is paying off

Strong cash flow

Strong balance sheet


Moving Point of Gravity

Customer Value

Resource allocation

Geographically

Moving the Point of Gravity


Group Challenges and Strategy for 2014

Continue down the road to delivering improved results

Continue to expand in growth markets

Reduce costs in Europe

Improve our gross margins

Further strengthen our cash flow

03 March 2014, page 18

Financial Update

Christian Johansson, CFO & CIO


Organic growth 5 %

Return on capital employed 15 %

Operating margin 7 %

Equity ratio 30 %

Financial Targets


Net Sales Organic Growth Quarter vs Quarter (%)

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

1 2 3 4 1 2 3 4

2012 2013

Full year

2013: +1 % 2012: -1 %


Operating Profit by Quarter (MSEK)

Operating Profit Operating Profit, excl Non Recurring Items

0

20

40

60

80

100

120

140

160

1 2 3 4 1 2 3 4

2012 2013

Full year Operating Profit

excl. Non-recurring items

2013: 306 2012: 266

Operating Profit 2013: 222 2012: 179


Operating Margin by Quarter (%)

Operating Margin %, Quarter Operating Margin % Quarter, excl. Non-Recurring Items

Operating Margin %, 12M Operating Margin % 12M, excl. Non-Recurring Items

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1 2 3 4 1 2 3 4

2012 2013

Full year Operating Margin,

excl. Non-recurring items

2013: 5.8 2012: 5.1

Operating Margin

2013: 4.2 2012: 3.4


Operating Cash Flow (MSEK)

185 200

-150

-100

-50

0

50

100

150

200

250

300

1 2 3 4 1 2 3 4

2012 2013

Full year

2013: 261 2012: 112

Operating Cash Flow 12M


Net Debt (MSEK)

-1400

-1200

-1000

-800

-600

-400

-200

0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2012 2013

Post-employment benefits

Net Debt, excluding Post-employment Benefits

Gunnebo AB

Dividend paid

2012 Q2 76

2013 Q2 76


Credit Facility With a 5-Year Tenor Successfully Signed

PRESS

RELEASE

FEBRUARY

20, 2014

Gunnebo AB has successfully signed an agreement regarding a syndicated credit facility for the amount of 1,480 MSEK (140 MEUR, 35 MUSD).

The facility, which has a tenor of five years and will mature in February 2019, is mainly a refinancing of current loan facilities.

The facility is provided by DNB and SEB and constitutes the basis for Gunnebo‟s loan financing. In addition it will function as a liquidity reserve and brings flexibility in respect of the group‟s financing needs.

"We are pleased with the continued support and commitment the banks have shown. The rationale for the refinancing was to extend the maturity of the facility and to benefit from the present market situation with attractive terms for longer financing” Christian Johansson, CFO Gunnebo AB.


Adjusted organisation implemented in Q4 2013

Sales Companies

Sub-regional structure for increased back office efficiency

Nordic: Focus on implement a harmonized „Nordic‟ model to increase efficiency

United Kingdom & Ireland: Reduction of cost to cope with current business demand

Central: Common resources in back office functions

France: Restructuring programme initiated focusing workforce efficiency, project & margin

management, regional footprint

South: Continued cost adaptation to further lower break-even point

Operations

Capitalise on synergies enabled by reorganisation, R&D, market & technical support

Indirect material programme initiated including sales companies

Fixed Cost Savings in Europe


Net purchasing savings -3%

Low Cost Country Sourcing 39 %(+5 %)

Transport & logistics efficiency

Manufacturing footprint

Consolidation

Moving point of gravity

Improved Sales & Order Planning

Gunnebo Operating System „GOS‟ established

Globalised product development process, reducing lead times and focus value engineering

Gross Margin Improvements

Reduce total

Product Cost in own Manufacturing

by 7%

2013 and ongoing Target position 2016 in Operations


Manufacturing Footprint

Gunnebo plans to close its production facility

in Uckfield, UK

Due to growth of the business in Asia and the Americas

regions along with continued decline in Europe, Gunnebo

intends to realign its manufacturing footprint accordingly

Therefore the Gunnebo Group plans to close its Entrance

Control production facility in Uckfield, UK

Production and assembly will be transferred to other

production units within Entrance Control

The planned closure may affect 32 employees

Closure is planned to take place in Q4 2014

Costs for a closure would burden results in 2014

with 16 MSEK with yearly savings of 11 MSEK

from Q1 2015.

PRESS

RELEASE

MARCH 5, 2014


Manufacturing Footprint

Moving the point of gravity Investments in Halol, Baroda, India 30 MSEK in 2014 Capacity extension to enhance existing production of

traditional physical security products and to extend a dedicated production line for ATM Safes


Inventory Tighter cooperation between sales companies and Operations

Transfer of assembly closer to customers in Asia-Pacific

European Distribution - continued implementation of direct shipments, increase capital turnover in central & sub-regional hubs

Increased focus on product offering complexity and phase-out process

Accounts receivables

Harmonisation of credit management procedures

Real estate

Review of own vs rent

Cash Flow


Region Europe, Middle East & Africa

Morten Andreasen, SVP EMEA


Nordic; 14%

Central Europe; 26%

South Europe;

12%

France; 31%

Eastern Europe; 2%

Great Britain & Ireland; 8%

Middle East; 3%

Africa; 4%

Region Europe, Middle East & Africa (EMEA)

EMEA Net Sales 2013: MSEK 3,474


Region Europe, Middle East & Africa (EMEA)

Full Year 2013

Good order intake in Africa and South Europe

Net sales on European markets unchanged or declining

Reduction of cost base in sales companies and Operations continued

Margin unchanged at 1.4%, excl. non-recurring items

Region % of Net Sales

66%

MSEK 2013 2012 2013 2012

Order intake 880 821 3,558 3,707

Organic growth, % 6 -2

Net sales 999 1,035 3,474 3,736

Organic growth, % -4 -5

Operating profit/loss excl. non-recurring items 56 49 47 53

Operating margin excl. non-recurring items, % 5.6 4.7 1.4 1.4

Non-recurring items -26 -21 -74 -63

Operating profit/loss 30 28 -27 -10

Oct-Dec Full year


Market stabilisation and reduction of fixed costs

Order intake finally seemed to stabilise in Q4 of 2013

The „International Key Customer programme‟ was successfully built up, and sales to the selected 27 customers increased by 10% vs 2012

Our „Channel Management Programme‟ was revitalised, refocused and structured for increasing sales through distributors

A sub-regional structure was introduced in EMEA at the beginning of 2013 to capture sales synergies and build shared services

Restructuring programmes initiated in a number of countries in 2012 and 2013 resulted in a lower break-even level

In particular Southern Europe made a turnaround

Major Achievements 2013 in EMEA


Sub-Regional Highlights for 2013

UK Regional Manager: Paul Hutchinson

Awarded prestigious Royal Warrant (Gunnebo now „by appointment to her Majesty the Queen‟)

Steps taken to increase sales within Cash Handling

First to implement Gunnebo‟s new service delivery standards and software

Strong adaptation of costs to slower market

Market in 2013:

Outlook market trend:

7% 14%

Nordic Regional Manager: Tom Christensen

Improvement in quality and cost of SafePay systems strengthens our position in a competitive market, with several major contracts won (Axfood, Shell, etc.)

Focus on the retail segment in a decreasing bank market

Plans to increase our Electronic Security business in the region

Restructuring programmes increase efficiency and lower break-even levels

Market in 2013:




Central Regional Manager: Patrick Van Aart

Strong focus on Cash Handling to retail resulted in several major contracts (Real, a large European shoe retailer)

Shared services in dispatching and monitoring initiated

Restructuring programmes increased efficiency and lower break-even levels

Market in 2013:


France Regional Manager: Michael Gass

Order intake reflected the general trend in France

Sales to French Key Customers in the bank sector remained strong

Steps taken to penetrate the market with SafePay

The restructuring programme initiated in 2013 to reduce the cost of sub-contractors and lower the break-even level will continue throughout 2014

Market in 2013:


32% 26%



South Regional Manager: Darío Vicario

Markets slowly stabilising going into 2014

Good orders landed in retail (Leroy Merlin, Conad) and also with banks (Bankia)

The restructuring programmes initiated in 2012 almost finalised, with a lower break-even level as a result

Market in 2013:


Eastern Europe Regional Manager: Jurek Szkalej

Fairly low activity level in the Eastern European markets compensated by good development in Ukraine, Azerbadjan and Kazakstan

Security installations in EU embassies in Ukraine, Kyrgyzstan and Afghanistan

Steps taken to increase business in Russia

Market in 2013:


12%

2%



Middle East Regional Manager: Jacob Touma

Middle East markets stable but growth is slower because of regional tensions

Hence focus will be on the Gulf states in the foreseeable future

Focus on building Electronic Security business

Branch office established in Oman

Market in 2013:


Africa Regional Manager: Martin Houseman

Generally strong demand in both East and West Africa.

Kenyan branch office established to handle East Africa whereas West Africa is still handled on a project basis

South African market expected to be impacted by elections and low currency rates

Introduction of Cash Handling

Market in 2013:


3% 4%


Gunnebo Strengthens Partnership with La Poste

The French postal service, La Poste, has made Gunnebo one of its most important suppliers of electronic security solutions New contract could be worth up to €5m over three years

Gunnebo will supply 360 SecurWave control panels for

integrated access control and intrusion detection annually

Including earlier roll-outs, over one third of La Poste‟s

12,000 sites will be equipped with SecurWave

Being able to supply a single solution to fit all post offices

was a major advantage

La Poste plans to monitor the entire installed base using

Gunnebo‟s SecurManager application - optimises operating

costs

PRESS

RELEASE

MARCH 5, 2014


EMEA: Market Drivers & Trends

Western Europe: Demand driven by high crime rates, developed economies and high personal affluence. Has been dented by economic slowdown.

Eastern Europe: Demand bolstered by increase in construction spending and increase in wealth.

Africa and Middle East: Continuing trend for urbanisation, economic growth and increased personal affluence is supporting demand.

Middle East in particular is showing increased demand for greater protection of commercial and public buildings through the installation of entrance and access control systems.


In Focus 2014

1. Develop sales

2. France turnaround

3. Restructuring to lower costs

4. Organisational efficiency

5. Improve cash flow


Clearer distinction between solution sales (direct to end customer) and commodity sales (channel management)

Strong focus on particular market segments (specifically within retail)

Value development from Safes and Vaults to Cash Handling and Electronic Security

KAM programme leading to more „Mega Customers‟

2014 and Beyond (1/2)


Larger strategic partnerships

More establishments in growth countries in the regions Africa, Middle East, Eastern Europe and Commonwealth of Independent States (CIS)

Continuous cost reductions through further restructuring programmes, then structural changes to capture synergies

Strong performance culture

2014 and Beyond (2/2)


Region Americas

Tomas Wängberg, SVP Americas

Front image from Sao Paolo?

Region Americas

Tomas Wängberg, SVP Americas


Region Americas

North America; 78%

Latin America; 22%

Net Sales 2013: MSEK 843


Full Year 2013

Increased order intake mainly through major orders in Latin America

Organic growth mainly supported by good growth in US

Successful integration of Hamilton Safe, cost reductions within administration and operations have improved margins

Increased operating profit and margin of 14.8%

16%

Region % of Net Sales

MSEK 2013 2012 2013 2012

Order intake 167 261 913 658

Organic growth, % -16 9

Net sales 217 245 843 632

Organic growth, % -5 7




Operating profit/loss 39 41 123 97

Oct-Dec Full year

Region Americas


Major Achievements 2013 in Americas

Continued expansion into new markets and market segments

Integration and “optimisation” of Hamilton Safe

New solutions in US and Canada

Cash Handling Brazil

BBVA Bancomer contract in Mexico

Five-year service contracts with major banks in Canada

Order for first SafeStore Auto in USA


North America: Market Drivers & Trends

USA

Increased activity by regional/local banks to fill space where major banks pulled out last year

The business on the West Coast is returning as the general economy is improving

Government spending (except for military) seems to be stabilising

Canada

Continued growth in natural resource sector

Building on pharmaceutical and drug vault successes

Continuing to create and develop awareness within Entrance Security, Electronic Security and integrated systems markets


USA Country Manager: John Haining

Integration of Hamilton Safe offering into Gunnebo – adding UL-certified product range

Gunnebo core offering introduced into Hamilton Safe distributor network

Optimised production, hamonisation with Global Gunnebo Operation Standards

Government business slowdown due to sequester

Market in 2013:


Sub-Regional Highlights for 2013: North America

Canada Country Manager: Troy McCleary

Stable bank business

Increased focus on business in Western Canada – challenge to match growing demand with qualified staff

Tendency in the marketplace to postpone roll-outs under framework agreements and orders

Market in 2013:



Brazil Country Manager: Rubens Bulgarelli

Security remains on top of the agenda in Brazil

Decision taken to continue to build on the strong retail platform and focus Gunnebo global solution market introductions on the retail and CIT market segments

Gunnebo Brazil has developed into a hub for expansion into Latin America

Market in 2013:


Sub-Regional Highlights for 2013: Latin America

Mexico Country Manager: Jordi Riart

Major order from BBVA Bancomer for security-related services and installation and maintenance of security equipment for national branch network

Adds volume to the business consituting a good platform for further growth

Market in 2013:



Strategic Order within Cash Handling

Brazilian CIT company, Fidely‟s, invests in cash handling from Gunnebo Order includes front office cash deposit solutions

Fidely‟s will package products as part of offering to small and

medium-sized retailers across Brazil

The solutions allow secure and efficient cash deposits at the

till

increases security

minimises the risk of robberies and theft

reduces the time spent on cash management

prevents counterfeit notes being accepted

Partnership with Gunnebo an important part of Fidely’s

strategy to create long-term relationships with their end

customers

PRESS

RELEASE

MARCH 5, 2014


LAM: Market Drivers & Trends

Mexico

Mexican Banks continue to be very profitable and with low risk, due to continued risk avoidance

Low penetration rate of banks and requirement to upgrade old branches provides for continued market growth and opportunities

Brazil

Retail is suffering from a historically slow Christmas, applying large discounts to clear stock, and unclear situation regarding new store openings

Low penetration of retail security and ”intelligent cash handling” provides for continued market opportunities

Continued huge interference from the government – protecting local industry against import products

Rest of Latin America

Many well-performing economies are emerging as Brazil slows down, especially Peru, Colombia and Chile

Latin America: Market Drivers & Trends


Cash Handling

Channel managment

Key Account Management

Retail security (e.g. EAS, alarm, CCTV)

Cash flow

In Focus 2014


2014 and Beyond

Establish Gunnebo as a major player in security over the continent, built from the current operating units

Continue to broaden the scope of the business Cash Handling

Electronic Security

Direct sales and services in new countries

From assembly to manufacturing in Latin America


Gunnebo Asia-Pacific Per Borgvall, President & CEO

Front image from KL/Jakarta?

Region Asia-Pacific

Per Borgvall, SVP Asia-Pacific


Region Asia-Pacific

Australia:

16%

India: 40%

China:

14%

South-East Asia: 30%

Net Sales 2013: MSEK 954


Region Asia-Pacific (APAC)

18%

Region % of Group Net Sales

Full Year 2013

Strong organic growth in India, China and South-East Asia

India continues to contribute strongly to net sales

Operating profit increased and operating margin improved above 2012

MSEK 2013 2012 2013 2012

Order intake 266 235 1,043 885

Organic growth, % 26 27

Net sales 261 237 954 868

Organic growth, % 22 20




Operating profit/loss 34 41 126 92

Oct-Dec Full year


Major Achievements for 2013 in Asia-Pacific

Continued growth and expansion into new markets

Organic order intake grew 27% in the region

In India, organic order intake grew 24%

First successful full year in Malaysia

Acquisition in South Korea in August 2013

Establishment of branch offices in Thailand,

Vietnam and Myanmar (Burma)



China Country Manager: Chris Dai

21% organic growth in Chinese market, across all segments

First company providing turnstile solutions for check-in process at a Chinese airport - Beijing Capital International Airport

Starting to explore opportunities in high-speed rail, jewellery processing, museum and other high potential market segments

Building up the local R&D capacity and developing products specifically for the Chinese market

Market in 2013:


India Country Manager: Sandeep Deshpande

Solid growth for the fourth consecutive year (CAGR 30%) and 18 consecutive quarters

Strong channel performance in Bank business

Remote Monitoring Centre for service business up and running

Footprint expansion in Fire Extinguishers and Entrance Control business

Developed system integration capabilities – secured three prestigeous projects in 2013

Market in 2013:


40%

14% 14%


Market Drivers & Trends

India

GDP Growth >5%

Infrastructure investments in airports, railroads, metro systems and the financial sector

Increasing wealth and a strong middle class

Rural investments

High security demand

China

GDP growth >7%

Infrastructure investments in airports, railroads, metro systems and the financial sector

Increasing wealth and a strong middle class

Rural investments and expansion towards the western part of the country



South-East Asia Regional Managers: William Mouat & Sacha de la Noë

Established new sales company in South Korea

Opened representative offices in Thailand and Myanmar

First automated safe deposit locker (SafeStore Auto) installed in Malaysia

Sales company in Indonesia investing in Cash Handling solutions for the retail market

Market in 2013:


Australia/New Zealand Country Manager: Dan Turner

Moved Cash Handling manufacturing offshore to Kunshan plant, lowering cost base and improving competitive position

Further market share gained in Retail Cash Handling

Plans to increase our profitable foothold in the developing New Zealand market

Reduced operating costs by „offshoring‟ support functions to India

Market in 2013:


16%

30%


Market Drivers & Trends

Australia/New Zealand

A mature market by and large driven by the raw material industry

Sophisticated solutions for Cash Handling in the retail sector

Natural disasters create volatility

South-East Asia

Indonesia

GDP growth >5%, young and dynamic population, huge raw material reserves

Malaysia

GDP growth >5%, infrastructure and raw materials

Thailand

70 million, political unrest


Large Order Won with Guanfu Museum in Shanghai

Gunnebo has received an order worth over €2m to deliver safe deposit lockers to the Guanfu Museum in Shanghai, China Museum is located in Shanghai Tower – China‟s tallest

building

16,888 lockers and 15 vault doors will be delivered

Guanfu will rent out lockers to their members for the storage

of valuable artwork

Reputation of Chubbsafes decisive in order win – positive for

insurance reasons

New segment for Gunnebo in China and first time

Chubbsafes SDLs have been produced in China

Delivery and installation will be carried out during the Q2

2014 in collaboration with systems integrator, Airlink

PRESS

RELEASE

MARCH 5, 2014


Maintain growth momentum

Cash Handling

Further geographical market penetration

Electronic Security

Cash flow

Focus Areas 2014


2014 and Beyond

Maintain the Moving the Point of Gravity momentum

Continue to broaden the scope of the business Cash Handling

Electronic Security


Q&A


Introduction to stations

Explore Gunnebo’s Customer Solutions

10.40-12.00


Explore Gunnebo’s Customer Solutions


Three stations Station 1 - Mass Transit and Public & Commercial Buildings - Robert Hermans

Station 2 - Retail - Anna Almlöf

Station 3 - Bank - Karin Wallström

Station number on name tag

20 minutes at each station including questions, 5 minutes logistics

Practicalities


Entrance Control

Mass Transit and

Public & Commercial Buildings

Capital Market Day March 5, 2014


Mission

“Protecting people and assets by regulating and controlling access through passage

barriers and detection systems”


Share of Gunnebo

92%

8%

Sales 2013

Gunnebo Other

Entrance Control


37%

37%

17%

9%

Sales 2013 by Region

Europe

APAC

Americas

MEA

Global Market Scope


Offering

Security/Building Applications

Mass Transit Applications


Market Drivers and Trends

Growth of urban populations driving opportunities and inner-city developments for Metro & BRT

Facilitation of mobility and increased cross-border movement of people

Reduction of overheads, receptionists, man guarding, etc

Growing terrorism and crime threats, actual and perceived

Need for centralised security checking and audit control of personnel

The Shard, London

Hong Kong Metro


Market Analysis / Size & Growth Potential

Source: IMS World Market for Entrance Control Equipment, Ed. 2013

OfficeBuildings

Mass Transit Industry GovernmentBuildings

Banking &Finance

Leisure &Entertainment

Stadia Education Ports &Harbors

OtherTransport

2017

2012


11,8%

11,0%

10,3%

6,5%

2,9% 2,7% 2,6% 2,1% 2,1%

1,7%

GunneboEntrance

Boon Edam Kaba AutomaticSystems

IDL FAAC Alvarado Perco Saima Argusa

Gunnebo Market Share

2012 market size:

558.5 MUSD

53.8%

46.2%

10 topsuppliers

Others

Source: IMS World Market for Entrance Control Equipment, Ed. 2013


Evolution Video

New Speedstile Range

Evolution.mp4


Chinese Metro Station


Metro Fare evasion – loss of revenue for the operator

Undesired passengers – feeling of safety for other passengers

Avoid fare disputes with staff

Queue management and quick throughput (70pax/min)

Airport Security – avoid human factor

Cost savings – staff handling the exceptions only

Improved throughput

Less conflict and fewer disputes with airport staff

Opportunity for queue management and passenger profiling

Mass Transit – Market Drivers for Installing Turnstiles


Gate Demonstration

Newly launched gate for Metro & Airport applications (MFL/AFL) Key Benefits

Narrow casework

Common central core

Easy customisable end leg options

Design flexibility and branding

Panel height from 0.9 to 1.8m

High security against unauthorised passage


www.gunnebogroup.com


Cash Handling in the Retail Market

Background

Passande helsidesbild med Cash Handling

Customer Segment Retail



With our heritage from the banking sector, we have chosen to

focus our solutions offering on improving security and efficiency

for RETAILERS within the CASH, GOODS and PEOPLE processes.

Our solutions include:

Cash Handling

Entrance Security

Electronic Security

Safes & Vaults

Security Services

The Retail Business

A growing business for Gunnebo


Millions of stores across the globe

Increased interest in cash handling

Annual Global Growth: close to 6 per cent*

Market drivers: Cash is pushed out in the retail trade

Increased demand for in-store security

Changed consumer purchase behaviours

Growing middle class in Asia-Pacific and Americas

Retail market M&A - Globalisation

The Global Retail Market

*CAGR 2008-2013. Source: Planet Retail


Total Group Sales in 2013 (MSEK): 5 270

The Retail Business: Share of Total Sales and Product Split

Electronic

Security

Cash

Handling

Service

Safes

Other Retail

23%

Share of Group Net Sales Product Categories


Global Top 10 Retailer Ranking 2013

Ranking, 2013

Banner Sales (MDSEK)

Outlets

Walmart 3 342 11 254

Carrefour 856.3 10 479

Tesco 772.4 7 548

Costco 719.7 634

Seven & I 687.1 31 758

Schwarz Group 678.7 11 140

Kroger 674.8 3 537

Metro Group 646.8 2 265

AEON 637.0 17 102

Auchan 592.1 3 552



Samma bild som framsidan med Cash Handling

Case: Retail Cash Handling

Tobias Gunnesson, Global Product Manager


Smaller Grocery Formats Have Seen Strong Rate of Store Openings

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

Hypermarkets &Superstores

Supermarkets &Neighbourhood

stores

Discount stores Convenience &Forecourt stores

Cash & Carries &Wholesale clubs

Drugstores,Pharmacies &Perfumeries

Nu

mb

er o

f O

utl

ets

Channel

Global: Channel Sizes by Outlets, 2007-2017

2007

2012

2017

Source: Planet Retail.


Cash is pushed out in the retail trade

Demand for bank notes increases all over the world (except in Scandinavia and Rubel in Russia)

Retail cash handling problems do not directly vary with cash volume

Security

Efficiency

Control

Cash Continues to Grow as Means of Payment

Source: Central Banks, CIA; AX CEL analysis

34.6

24.6

6.0

12.5

29.1

8.7

3.3

8.0

10.3

-0.8

12.2

0.8

12.6

31.4

4.6

2.7

1.5

-5.7 Sweden

UK

Germany*

France**

India

Indonesia

USA

Brazil

Russia

Value of bank card

transactions, CAGR, %

Value of ATM

withdrawals, CAGR, %


Cash Accounts for 41% of Transactions in Sweden


Gunnebo Retail Sales Tool






SafePay™ Demonstration

SafePay™ is setting the industry

standard for closed cash handling

Developed with leading European retailers

Over 6 500 systems installed

15% at self-service checkouts and 85% at traditional checkouts

Installed everywhere from bakeries to petrol stations and hypermarkets

Provides a new way of working with cash handling in retail stores

Security

Time-saving

Control and reporting




Customer Segment Bank



Many of the acquired companies have a history doing

business with banks stretching back over 100 years

Core Business:

Safes & Vaults

Electronic Security

Cash Handling

Entrance Security

Security Services

The Bank Business: Gunnebo’s Core Heritage

Gunnebo’s ”oldest” business


800,000 retail bank branches and head offices

200 central bank distributed over 2,000 sites

Estimated annual market growth: 4-5%

Estimated market size: MEUR 9,500

The Global Bank Market


Market Drivers

Need to secure people: customers and staff

Protect values

Increased amount of cash in circulation

Growing middle class

Staff remain focused on their core activity

Reduce security guarding costs

Compliance with national regulation

Management of installed base

Bank M&A - Globalisation


Physical

Security

Electronic

Security Cash

Handling

Service

Safes

Other

Total Group Sales in 2013 (MSEK): 5 270

The Bank Business: Share of Total Sales and Product Split

Share Of Group Net Sales Product Categories

Banks

45%


Case: Electronic Security for Banks Hugo Balaguer, Product Manager Electronic Security


Electronic Security for Banks: Key Market Points

Part of a huge electronic security worldwide

market estimated at €33 billion with a 9.3 % annual

average growth*

Significant Gunnebo presence in European countries

A business under development in Americas and

Asia-Pacific

*Source: Freedonia 2014


Electronic Security Solutions

Gunnebo designs and markets electronic security solutions for:

Retail Banks (National, Regional, International):

Intrusion detection systems

Video surveillance

Remote surveillance

Head Office and Central Banks

Perimeter detection, identification & surveillance

Video surveillance

Access control systems

Security management software


Key Selling Points

Strong and lasting relationships

Bank market awareness

Comprehensive and turn-key security solutions

Adaptable and customised solutions

Mastering of all processes throughout the lifecycle:

design, development, implementation

and services


Case Study: A French National Commercial Bank

Environment National network of 3,800 branches

Concentration of several savings banks and banks

First bid in 2005 with 4 competitors

Only 2 companies selected

Customer needs Many procedures to manage (people flow, safe management

and opening times)

Central access control management (cardholder uniqueness)

Capacity to connect to remote surveillance over IP

Interface with CIT database for safe management

Key success factors Customisable safe management solution (SecurWave)

Installed base management solution (SecurManager)

Strong relationship with bank IT department

Project management expertise

Conclusion Strong and lasting partnership

Project roll-out with more than 150 branch installations per year since 2009

Recurring business including services


Demonstration Platform

Cameras

High-Security Lock

Access Control Reader

Panic Alarm


Summary

2 digits growth in the electronic security market

A leader position

Recurrent & profitable business in roll-out projects

Full process mastering of the life solution





Summing up


Summing Up: Cash Handling

SafePay™ is setting the industry standard

for closed cash handling

Developed with leading European retailers

Over 6 500 systems installed

15% at self-service checkouts and 85% at traditional checkouts

Installed everywhere from bakeries to petrol stations and hypermarkets

Provides a new way of working with cash handling in retail stores

Security

Time-saving

Control and reporting


Summing Up: Electronic Security

2 digits growth in the electronic security market

A leader position

Recurrent & profitable business in roll-out projects

Full process mastering of the life solution


Summing Up: Entrance Control

Gunnebo is world leader in Turnstiles

Gunnebo has a good global coverage

Global market is growing in our targeted market segments by around 6% CAGR

We have a newly launched portfolio of products targeting the segments with expected growth in the market


Q&A




Capital Market Day 2014Gunnebo has an industrial heritage stretching back 250 years. 1764 ... Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 Post-employment benefits Net Debt, excluding Post-employment

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