Year-End Report 2016 2016 2015 2016 2015 Q4 IN BRIEF Oct - Dec Oct - Dec Jan - Dec Jan - Dec Net sales, MSEK 1,776 1,677 6,088 6,052 EBITDA excl. non-recurring items, MSEK 203 181 561 505 EBITDA margin excl. non-recurring items, % 11.4 10.8 9.2 8.3 Operating profit (EBIT) excl. non-recurring items, MSEK 172 149 438 397 Operating margin (EBIT) excl. non-recurring items, % 9.7 8.9 7.2 6.6 Operating profit (EBIT), MSEK 142 121 366 320 Operating margin (EBIT), % 8.0 7.2 6.0 5.3 Net profit for the period, MSEK 96 80 209 168 Basic earnings per share, SEK 1.25 1.05 2.71 2.18 Free cash flow, MSEK 107 218 159 56 Dividend per share (*proposed), SEK - - 1.20* 1.00
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Year-End Report · 21% Cash Management Entrance Security Electronic Security Other % GROUP SALES YTD 2016 2015 2016 2015 Oct - Dec Oct - Dec Jan - Dec Jan - Dec Net sales, MSEK 351
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1 GUNNEBO YEAR-END REPORT 2016
Year-End Report 2016
2016 2015 2016 2015
Q4 IN BRIEF Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Dividend per share (*proposed), SEK - - 1.20* 1.00
2 GUNNEBO YEAR-END REPORT 2016
CEO’s COMMENTS ON THE FOURTH QUARTER 2016
he fourth quarter was a strong end to the year with a turnover of MSEK 1,776, which is an increase of 6%. Organically, sales
increased by 3% and the operating margin ex-cluding non-recurring items amounted to 9.7%.
For the full year, we reported an operating margin excluding non-recurring items of 7.2%, which means we have met our financial target of a 7% operating margin.
DEVELOPMENT OF OUR BUSINESS
Region EMEA showed organic sales growth of 2% during the fourth quarter. Sales were strong primarily in Southern Europe, Central Europe and Eastern Europe whereas they were weaker in France and the UK.
Region Asia-Pacific continued to show organic growth also during the fourth quarter. Sales were strong in South Korea, mainly due to a larger installation within Entrance Security, and in India where the ATM business continued to perform well.
Region Americas had organic sales growth of 4% during the fourth quarter. In both North and South America sales developed positively.
The positive trend in Entrance Security’s sales continued. The sales in mass transit continued to develop well, with deliveries of several orders for metro systems in both Asia and Europe.
In Cash Management, sales in Europe of the closed cash management system, SafePay, continued positively during the period and several major customers placed new orders. In North America we received several large orders for airtube systems from American banks.
In Safes & Vaults, both sales in the ATM and certified safe segments developed positively.
In Electronic Security sales during the quarter were below last year, due to weaker sales in Europe.
Q4 FINANCIAL RESULTS
For the fourth quarter, we reported organic sales growth of 3%, as well as an operating profit excluding non-recurring items of MSEK 172, giving an operating margin of 9.7%.
With a strong fourth quarter, it is a milestone to report an operating margin of 7.2% for the year. With a clear strategy and structure, we are now equipped to continue executing our strategy for profitable growth.
Gothenburg, February 2, 2017
Henrik Lange President and CEO
FINANCIAL TARGETS & OUTCOME Target
2016 2015 2016 2015
Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Organic growth 3% 2% 1% 0% 5%
Operating margin1)
9.7% 8.9% 7.2% 6.6% 7.0%
Return on capital employed1) 2)
12.8% 12.4% 12.8% 12.4% 15.0%
Equity ratio 34% 34% 34% 34% 30%
1) Excluding non-recurring items2) During the last twelve-month period
T
3 GUNNEBO YEAR-END REPORT 2016
SALES & PROFITABILITY IN BRIEF SALES BY REGION YTD 2016 SALES BY PRODUCT GROUP YTD 2016
SALES Q4 2016 VS Q4 2015 SALES YTD 2016 VS 2015
GROUP SALES & OPERATING MARGIN BY QUARTER
SALES BY PRODUCT GROUP YTD 2016 VS 2015
64%
19%
17%EMEA
APAC
Americas
17%
22%
35%
19%
7%Cash Management
Entrance Security
Safes & Vaults
Electronic Security
Other
Organic Structure Currency Total
EMEA 2% 0% 2% 4%
APAC 3% 0% 5% 8%
AMERICAS 4% 0% 5% 9%
TOTAL 3% 0% 3% 6%
Organic Structure Currency Total
EMEA 0% 2% -1% 1%
APAC 5% 0% -1% 4%
AMERICAS -2% 0% -3% -5%
TOTAL 1% 1% -1% 1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
1 2 3 4 1 2 3 4 1 2 3 4
2014 2015 2016
EMEA APAC Americas Total
Cash Management ++ --- +/- +/-
Entrance Security +++ +/- +/- +++
Safes & Vaults + + + +
Electronic Security --- --- --- ---
Other +++ +++ +/- +++
+/- Unchanged + or - Slightly better/Slightly worse ++ or -- Better/Worse +++/--- Much better/Much worse
4 GUNNEBO YEAR-END REPORT 2016
SALES DEVELOPMENT Q4 2016 Organically, the region’s sales during the fourth quarter increased by 2%. Sales in the sub-regions South, Central and Eastern Europe continued to develop well. The development was weaker in France and the UK.
Cash Management solutions continued to develop well. Several large deliveries in Southern Europe and France of the closed cash management system, SafePay, had a positive impact. Sales in the Middle East in collaboration with a cash services partner also developed well.
Sales in Safes & Vaults developed positively, driven by channel partner sales in the Nordics as well as a strong development of the delivery of ATM safes.
Entrance Security had a strong development during the quarter in the majority of the markets across the region.
Electronic Security sales were weaker in the fourth quarter.
RESULT DEVELOPMENT Q4 2016
Operating profit excluding non-recurring items improved to MSEK 76 (69) giving an operating margin of 6.7% (6.4). The improved profits were mainly driven by increased productivity in Europe.
Non-recurring items had a negative impact on operating profit by MSEK -23 (-26). These were mainly caused by continued structural changes in Europe.
QUARTER HIGHLIGHTS
French La Poste places an order for over 500 customized safes.
Dubai-based cash services company Transguard continues to order solutions for cash management for installation at their retail customers.
Danish indoor multifunctional arena, Royal Arena, turns to Gunnebo for an entrance security solution.
UK Post Office agrees to trial Gunnebo’s anti-gas attack protection system for ATM’s (GP-X ATM).
Several orders for Entrance Security have been placed by public & commercial buildings in the Middle East.
EMEA IN BRIEF
SVP: Heinz Jacqui | Sales Companies: 17
Europe, Middle East & Africa (EMEA) is the Group’s largest region. It is divided into eight sub-regions: Nordic, Central Europe, Southern Europe, UK/ Ireland, France, Eastern Europe, Middle East and Africa.
SALES DEVELOPMENT Q4 2016 Sales in the region increased organically by 3% during the fourth quarter. The markets in India, China, South Korea and Singapore have developed well, while sales were weaker in the rest of South-East Asia.
Sales in Safes & Vaults continued to develop well on all markets in the region during the quarter, especially the sale of safes to manufacturers of ATMs. The bank business in India developed weaker, being affected by the demonetisation programme.
Sales of Entrance Security solutions were good, mainly driven by a major delivery in South Korea.
Gunnebo also has a fire security business in the region. Both the fire products and project business developed well in India and Indonesia.
Sales in Cash Management and Electronic Security developed weaker in the quarter.
RESULT DEVELOPMENT Q4 2016 Strong sales and tight cost control contributed to the improvement in operating profit excluding non-recurring items, which was MSEK 55 (41). This corresponded to an operating margin of 15.7% (12.7).
QUARTER HIGHLIGHTS
A Swedish retailer places an order for Gunnebo's retail stations for efficient cash management in their stores in Singapore and Malaysia.
The Chinese city of Guiyang chooses Gunnebo entrance security solutions for its metro Line 1.
Bank Central Asia (BCA) in Jakarta, Indonesia installs high-security perimeter protection and entrance control solutions.
Samsung Electronics Institute in Seoul University in South Korea invests in Gunnebo’s SpeedStile for entrance security.
ASIA-PACIFIC IN BRIEF
SVP: Sacha de La Noë | Sales Companies: 7
Australia/New Zealand, India, Indonesia, China South-Korea, South-East Asia: Malaysia, Singapore (with offices in Thailand, Vietnam and Myanmar)
SALES DEVELOPMENT Q4 2016 Organic sales for the region increased by 4% during the fourth quarter. Growth in Americas was primarily driven by sales within Safes & Vaults, Entrance Security and Electronic Security.
Safes & Vaults had a strong sales development in the quarter, primarily to the banking sector in the US and Canada.
Entrance Security had a positive development with a number of larger installations across the region and also strong sales of electronic article surveillance to major retail chains in Brazil.
Cash Management sales were primarily derived from strong sales of drive-up equipment in the US market, as well as a number of installations of cash deposit systems in the retail sector in both US and Mexico.
Electronic Security had a strong quarter, driven by good sales to American banks.
RESULT DEVELOPMENT Q4 2016 The region’s operating profit excluding non-recurring items was MSEK 41 (39) and the operating margin 13.9% (14.4).
QUARTER HIGHLIGHTS
Carrefour in Brazil signs a major contract for installation and service of electronic article surveillance and electronic security.
The retail business in Mexico continues to grow. In the quarter, contracts for installation and service of electronic security are signed with several companies including Costco and Telefónica.
Raia Drogasil and DPSP, the two largest drugstore chains in Brazil, continue to upgrade their loss prevention with solutions from Gunnebo.
Major American banks turn to Gunnebo for the installation of a cash management system to improve the customer experience.
Canadian Correction Facility signs a two-year service agreement.
AMERICAS IN BRIEF
SVP: Dan Schroeder | Sales Companies: 4
North America: Canada, USA Latin America: Brazil, Mexico
FINANCIAL PERFORMANCE OCTOBER-DECEMBER 2016 Net sales The Gunnebo Group’s net sales during the fourth quarter amounted to MSEK 1,776 (1,677) representing a 6% increase. Organic growth was 3%, with EMEA at 2%, Asia-Pacific at 3% and Americas at 4%. The currency effect was 3%.
Operating results Operating profit was MSEK 142 (121), equaling an operating margin of 8.0% (7.2). Excluding non-recurring items, operating profit amounted to MSEK 172 (149), equaling an operating margin of 9.7% (8.9). EBITDA excluding non-recurring items reached MSEK 203 (181) corresponding to 11.4% (10.8) of net sales. Depreciations were MSEK 17 (15) and amortisations MSEK 14 (17) of which MSEK 6 (6) derived from acquisition related intangibles.
The gross profit margin excluding non-recurring items for the quarter was 29.7% compared to 29.2% last year. Selling and administrative expenses in percent of net sales excluding non-recurring items was 20.1% in the quarter compared to 19.8% last year.
Non-recurring items impacted the result by MSEK-30 (-28) in the quarter. These were mainly caused by continued structural changes in Europe.
Changes in the operating profit in the fourth quarter, as compared to the corresponding quarter 2015, were explained by:
The 3% increase in organic sales growth, which
improved the profit by MSEK 9.
The positive net structural effects of MSEK 16
included the change in non-recurring items
between the periods, as well as savings
realized from previous restructuring initiatives.
Currency effects for the quarter of MSEK 21, of
which translation effect was MSEK 5 and
transaction effect was MSEK 16 caused by all
major currencies.
A strategically important software
development initiative, general cost increases
and inflation, as well as the positive impact of
an improved gross profit margin which were
included in Other.
Research and development expenses amounted to MSEK 33 (29) equaling 1.9% (1.7) of net sales.
Other financial highlights Net financial items totaled MSEK -13 (-7) being on a level consistent with previous quarters. Tax expense was MSEK -33 (-34) resulting in an effective tax rate of 26% (30) reflecting the positive effects of previously unrecognized tax losses.
Free cash flow was MSEK 107 (218), affected negatively by the strong sales development in the end of 2016 which resulted in the build up of trade receivables.
A lower rate of investing activities was seen in the quarter. Cash flow from financing activities totaled MSEK -36 (-139) including both repayments of credit facilities and loan amortisations.
Equity was positively impacted by both currency translations of MSEK 18 (-13) and by actuarial gains of MSEK 37 (19) on the Group’s pension provisions, net of tax, primarily caused by an increase in the discount rate in the UK. Additionally, in November, Gunnebo AB issued 50,000 new shares in line with the incentive programme adopted in 2012, which increased equity by MSEK 1.
FULL YEAR 2016 Net sales The Group’s net sales amounted to MSEK 6,088 (6,052) representing a 1% increase. Organic growth was 1%, with EMEA at 0%, Asia-Pacific at 5% and Americas at -2%. The currency effect was -1% and structure was 1% related to the acquired business Sallén in the second part of 2015.
Operating results Operating profit was MSEK 366 (320), equaling an operating margin of 6.0% (5.3). Excluding non-recurring items, it amounted to MSEK 438 (397), equaling an operating margin of 7.2% (6.6). EBITDA excluding non-recurring items reached MSEK 561 (505) equaling 9.2% (8.3) of net sales. Depreciations were MSEK 68 (61) and amortisations MSEK 55 (47) of which MSEK 24 (14) derived from acquisition related intangibles.
The gross profit margin excluding non-recurring items was 29.5% compared to 29.7% last year. Selling and administrative expenses in percent of
OPERATING PROFIT BRIDGE
Oct - Dec
Operating profit 2015, MSEK 121
Organic 9
Structure 16
Currency 21
Other -25
Operating profit 2016 142
8 GUNNEBO YEAR-END REPORT 2016
net sales excluding non-recurring items was 22.5% compared to 23.1% last year.
Non-recurring items impacted the result by MSEK -72 (-77). The main items were the change into an indirect sales model in Austria, Hungary and Czech Republic which was finalized during quarter three, the closure of Trier manufacturing facility and continued structural and management changes in Europe.
The changes in the operating profit for the year compared to last year, were explained by:
The 1% increase in organic sales growth, which
affected the result by MSEK 8.
Structural effects between the periods of
MSEK 50 including the change in non-recurring
items, savings realized from previous
restructuring initiatives and the effect from
the Sallén acquisition.
The currency effect of MSEK 16 being the net
of transaction effects of MSEK 18 and
translation effects of MSEK -2.
The software development initiative, general
cost increases and inflation, as well as
increased spending on research and
development which were included in Other.
Research and development expenses were
MSEK 101 (87), representing 1.7% (1.4) of net
sales, an increase reflective of the Group’s strategy
to strengthen the product development roadmap
for all product areas.
Other financial highlights Net financial items totaled MSEK -53 (-43) where the currency development on loans impacted negatively. Tax expense was MSEK -104 (-109) resulting in an effective tax rate of 33% (39) reflecting the continued focus on income taxes during the year in addition to positive effects of previously unrecognized tax losses.
Free cash flow was MSEK 159 (56), reflecting a strong operating profit, a lower rate of investments in property plant and equipment as well as higher sales of property, plant and equipment mainly in the UK. Cash flow from financing activities totaled MSEK -115 (176) including both repayments of credit facilities and loan amortisations as well as new loans. In 2015 additional loans were taken related to the financing of the acquisition of Grupo Sallén.
Equity was impacted both positively by currency translations of MSEK 100 (-82) and negatively by actuarial losses of MSEK -99 (+42) on the Groups pension provisions net of tax. The actuarial losses are primarily caused by a decrease in the discount rate in the UK.
Additionally, Gunnebo AB issued a total of 135,000 new shares during the year in line with the incentive programme adopted in 2012, which increased equity by MSEK 4. The incentive program 2012 is now fully settled.
In line with the Long Term Incentive Programme (LTIP 2015), Gunnebo AB issued 730,800 new shares of series C in March at a nominal value of SEK 5 per share, increasing the share capital by MSEK 4 during the year. All of these shares were then repurchased by Gunnebo AB at the same value. The shares will be held by Gunnebo AB until the closure of LTIP in 2018, when they may be converted to shares of series B in line with LTIP.
Proposed dividend The Board propose a dividend of SEK 1.20 (1.00) per share for the 2016 financial year.
Gothenburg, February 2, 2017
Henrik Lange President and CEO
OPERATING PROFIT BRIDGE
Jan - Dec
Operating profit 2015, MSEK 320
Organic 8
Structure 50
Currency 16
Other -28
Operating profit 2016 366
This interim report is a translation of the original report in Swedish and has not been reviewed by the company’s auditors.
9 GUNNEBO YEAR-END REPORT 2016
GROUP INCOME STATEMENT, CONDENSED
2016 2015 2016 2015
MSEK Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Net sales 1,776 1,677 6,088 6,052
Cost of goods sold -1,257 -1,202 -4,319 -4,278
Gross profit 519 475 1,769 1,774
Selling and administrative expenses -379 -345 -1,417 -1,452
Other operating items, net 2 -9 14 -2
Operating profit 142 121 366 320
Net financial items -13 -7 -53 -43
Profit after financial items 129 114 313 277
Taxes -33 -34 -104 -109
Net profit 96 80 209 168
Net profit attributable to:
Parent company shareholders 95 80 206 166
Non-controlling interests 1 0 3 2
Net profit 96 80 209 168
Basic earnings per share, SEK 1.25 1.05 2.71 2.18
Earnings per share after dilution, SEK 1.24 1.05 2.70 2.18
GROUP STATEMENT OF COMPREHENSIVE INCOME, CONDENSED
2016 2015 2016 2015
MSEK Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Net profit 96 80 209 168
Other comprehensive income for the period
Items that will not be reclassified to the income statement
Actuarial gains and losses* 37 19 -99 42
Subtotal 37 19 -99 42
Items that may be reclassified to the income statement
Translation differences on foreign operations 18 -13 100 -82
Other* 2 0 2 -2
Subtotal 20 -13 102 -84
Total other comprehensive income 57 6 3 -42
Total comprehensive income for the period 153 86 212 126
*Net o f taxes
Total comprehensive income attributable to:
Parent company shareholders 150 91 205 129
Non-controlling interests 3 -5 7 -3
Total comprehensive income for the period 153 86 212 126
10 GUNNEBO YEAR-END REPORT 2016
GROUP STATEMENT OF FINANCIAL POSITION, CONDENSED
2016 2015
MSEK Dec 31 Dec 31
Goodwill 1,628 1,517
Other intangible assets 294 295
Property, plant and equipment 347 358
Financial assets 14 14
Deferred tax assets 332 304
Total non-current assets 2,615 2,488
Inventories 726 678
Accounts receivable 1,317 1,150
Other current receivables 312 273
Liquid funds 581 496
Total current assets 2,936 2,597
Total assets 5,551 5,085
Total equity 1,890 1,747
Deferred tax liabilities 90 93
Pension commitments 484 362
Loans, long-term 1,152 1,139
Total non-current liabilities 1,726 1,594
Accounts payable 739 635
Other current liabilities 945 895
Loans, short-term 251 214
Total current liabilities 1,935 1,744
Total equity and liabilities 5,551 5,085
CHANGES IN GROUP EQUITY, CONDENSED2016 2015
MSEK Jan - Dec Jan - Dec
Opening balance 1,747 1,694
Total comprehensive income for the period 212 126
Dividend -76 -76
Other, including new share issue 7 3
Closing balance 1,890 1,747
11 GUNNEBO YEAR-END REPORT 2016
GROUP CASH FLOW STATEMENT
2016 2015 2016 2015
MSEK Oct - Dec Oct - Dec Jan - Dec Jan - Dec
OPERATING ACTIVITIES
Operating profit 142 121 366 320
Adjustment for depreciations 17 15 68 61
Adjustment for amortisations* 14 17 55 47
Other including non-cash items -9 17 11 18
Net financial items -5 -4 -45 -46
Taxes paid -29 -36 -99 -95
Cash flow from operating activities before changes in working
capital 130 130 356 305
Cash flow from changes in working capital 7 131 -122 -119
Cash flow from operating activities 137 261 234 186
INVESTING ACTIVITIES
Capital expenditure on intangibles, property, plant and equipment -31 -44 -106 -135
Sales of non-current assets 1 - 31 4
Acquisition of operations - - - -160
Cash flow from investing activities -30 -44 -75 -291
Cash flow after investing activites, before financing activites 107 218 159 -105
FINANCING ACTIVITIES
Change in loans and other financial items -37 -139 -43 252
New share issue 1 - 4 0
Dividends paid to shareholders - - -76 -76
Cash flow from financing activities -36 -139 -115 176
Cash flow for the period 71 78 44 71
Liquid funds at the beginning of the period 496 427 496 447
Translation differences in liquid funds 14 -9 41 -22
Liquid funds at the end of the period 581 496 581 496
Free cash flow** 107 218 159 56
*Amortisations from acquisition related intangibles amounted to Q4 2016 M SEK 6 (6) and full year 2016 M SEK 24 (14)
**Equals to cash flow from operating and investing activities, excluding acquisitions and divestments
Accounting principles Gunnebo complies with the International Financial Reporting Standards adopted by the EU, and the official interpretations of these standards (IFRIC). The Interim Report for the Gunnebo Group has been prepared in accordance with the Swedish Annual Accounts Act and IAS 34 Interim Financial Reporting. The Interim Report for the parent company has been prepared in accordance with the Annual Accounts Act and the recommendation of the Swedish Financial Reporting Board, RFR 2 Accounting for Legal Entities. The same accounting principles and methods of calculation have been used as in the latest Annual Report. No new or revised IFRS standards effective 1 January 2016 had any significant impact on Gunnebo’s financial statements.
Significant risks and uncertainties The Group’s and parent company’s significant risks and uncertainties include operational risks and financial risks. Operational risks for Gunnebo mainly include risks posed by the global economy and commercial risks. The Group’s risk management is described in more detail in the latest Annual Report.
NOTE 2 FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial instruments measured at fair value For all assets and liabilities measured at fair value, which comprise derivative instruments, the fair values have been assessed based on measurement techniques which are, in all essentials, based on observable market data. According to the fair value hierarchy of IFRS 13, such measurement methods are referred to as Level 2.
The carrying amount of the Group’s derivatives corresponds to their fair values.
Other financial instruments For financial instruments such as accounts receivable, accounts payable and other non-interest-bearing financial assets and liabilities,
which are recognised at amortised cost less any write-down, the fair value is deemed to be the same as the carrying amount due to the short anticipated duration.
The Group’s long-term borrowing primarily relates to long-term credit facilities but with short fixed interest rate periods and stable credit margin. The fair value is therefore deemed to be the same as the carrying amount (Level 2 in the IFRS 13 fair value hierarchy).
15 GUNNEBO YEAR-END REPORT 2016
NOTE 3 RECONCILIATION TO THE GROUP'S PROFIT AFTER FINANCIAL ITEMS
2016 2015 2016 2015
MSEK Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Region EMEA 53 43 113 84
Region APAC 52 39 133 108
Region Americas 37 39 120 128
Operating profit 142 121 366 320
Net financial items -13 -7 -53 -43
Profit after financial items 129 114 313 277
NOTE 4 NON-RECURRING ITEMS PER FUNCTIONAL COST
2016 2016 2016 2016 2016 2016
Oct - Dec Oct - Dec Oct - Dec Jan - Dec Jan - Dec Jan - Dec
Cost of goods sold -1,202 15 -1,187 -4,278 26 -4,252
Gross profit 475 15 490 1,774 26 1,800
Selling and administrative expenses -345 13 -332 -1,452 51 -1,401
Other operating expenses, net -9 - -9 -2 - -2
Operating profit 121 28 149 320 77 397
Gross margin, % 28.3% 29.2% 29.3% 29.7%
Selling and administrative
expenses in percentage of net sales 20.6% 19.8% 24.0% 23.1%
Operating margin, % 7.2% 8.9% 5.3% 6.6%
16 GUNNEBO YEAR-END REPORT 2016
PARENT COMPANY
PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME, CONDENSED
2016 2015 2016 2015
MSEK Oct - Dec Oct - Dec Jan - Dec Jan - Dec
Net sales 100 129 236 265
Administrative expenses -93 -77 -201 -181
Operating profit 7 52 35 84
Net financial items -3 -3 -11 -11
Profit after financial items 4 49 24 73
Appropriations 113 75 113 75
Taxes -29 -29 -27 -37
Net profit 88 95 110 111
Total comprehensive income corresponds with net profit for the period
PARENT COMPANY STATEMENTS OF FINANCIAL POSITION, CONDENSED
2016 2015
MSEK Dec 31 Dec 31
Intangible assets 7 4
Property, plant and equipment 1 2
Investments in subsidiaries 1,585 1,585
Deferred tax assets 67 88
Total non-current assets 1,660 1,679
Current receivables from subsidiaries 54 31
Other receivables 16 9
Liquid funds 1 0
Total current assets 71 40
Totalt assets 1,731 1,719
Total equity 1,563 1,520
Current liabilities to subsidiaries 120 164
Other liabilities 48 35
Total current liabilities 168 199
Total equity and liabilities 1,731 1,719
CHANGES IN PARENT COMPANY EQUITY, CONDENSED
2016 2015
MSEK Jan - Dec Jan - Dec
Opening balance 1,520 1,485
Total comprehensive income for the period 110 111
Dividends -76 -76
Other, including new share issue 9 0
Closing balance 1,563 1,520
17 GUNNEBO YEAR-END REPORT 2016
DEFINITIONS
In the Interim Report, Gunnebo presents certain financial figures that are not defined according to IFRS. The Group believes that these figures provide investors and the company’s management with valuable supplementary disclosures, since they enable a valuation of the company’s financial results and position. Since not all companies calculate financials in the same way, these are not always comparable with figures used by other companies. These financials should not, therefore, be considered a substitute for figures defined according to IFRS.
Basic earnings per share Net profit attributable to the parent company’s shareholders divided by the weighted average number of shares excluding C-shares as these have no dividend rights.
Capital employed Total assets less non-interest-bearing provisions and liabilities.
Capital employed turnover rate Net sales rolling 12 months in relation to average capital employed.
Debt/equity Net debt in relation to equity.
Earnings per share after
dilution
Net profit attributable to the parent company’s shareholders divided by the weighted average number of shares excluding C-shares as these have no dividend rights, after dilution.
EBITDA Operating profit before depreciation/amortisation and impairments of intangible assets and property, plant and equipment.
EBITDA margin EBITDA as a percentage of net sales.
Equity ratio Equity as a percentage of the total assets.
Free cash flow per share Cash flow from operating and investing activities, excluding acquisitions and divestments, divided by the weighted average number of shares excl. C-shares as these have no dividend rights.
Gross margin Gross profit as a percentage of net sales.
Interest coverage ratio Profit/loss after financial items excluding interest costs, divided by interest costs.
Net debt Interest-bearing provisions and liabilities less liquid funds and interest-bearing receivables.
Net debt/EBITDA Average net debt divided by EBITDA rolling 12 months.
Non-recurring items Non-recurring items encompass restructuring programmes (closure of businesses and/or employee related costs) and other non-recurring items.
Operating margin (EBIT) Operating profit as a percentage of net sales.
Organic growth Growth in net sales adjusted for acquisitions, divestments and exchange rate effects.
Profit margin Profit after financial items as a percentage of net sales.
Return on capital employed Operating profit plus financial income rolling 12 months as a percentage of average capital employed.
Return on equity Profit for rolling 12 months as a percentage of average equity.
18 GUNNEBO YEAR-END REPORT 2016
Financial Calendar 2017
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
About Gunnebo
Gunnebo is a global security provider with an offering covering safes and vaults, cash management, entrance security and electronic security.
The Group has an annual turnover of MSEK 6,100 and 5,600 employees in 28 countries worldwide.
Gunnebo has 11 production units in ten countries.
Gunnebo’s shares (GUNN) are traded on NASDAQ Stockholm under Mid Cap and Industrials.
Vision
To be the leading global provider of a safer future.
Mission
Gunnebo’s mission is to offer products, services and solutions that increase security and efficiency, and create value for shareholders, customers, partners, employees and society on a global scale.
Strategy for profitable growth
Focus on growth in the product groups Cash Management, Entrance Security, Safes & Vaults and Electronic Security.
Focus on solutions-selling to key accounts in target customer segments.
Focus on operational excellence and productivity.
Product Groups
Cash Management Development, production, installation and service of intelligent cash management solutions for deposit, dispense, recycling and closed cash management. Marketed and sold under the Gunnebo brand with strong product brands as SafePay and Sallén.
Entrance Security Development, production, installation and service of turnstiles, security doors & partitions and electronic article surveillance (EAS). Marketed and sold under the Gunnebo and Gateway (EAS) brands.
Safes & Vaults Development, production, installation and service of safes, vaults, vault doors, safe deposit lockers (SDL’s) and ATM safes. Marketed and sold under leading brands such as Chubbsafes and Fichet-Bauche.
Electronic Security Development, production, installation and service of solutions for remote surveillance, access control, intrusion detection and electronic locking. Marketed and sold under the Gunnebo brand.
Other Development, production, installation and service of solutions for fire safety and other traded products.
Susanne Larsson, Group Chief Financial Officer +46 (0)10 2095 092
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, at 08.01 CET on February 2, 2017.