Gunnebo Interim Report April-June 2016

Regulatory News:

Comments on the second quarter by Gunnebo’s (STO:GUNN) President and CEO, Henrik Lange:

"For the second quarter, we report an improved operating margin of 7.0% (6.7). For Region EMEA the operating margin was 4.9%, an improvement of 1.3 percentage points.

DEVELOPMENT OF OUR BUSINESS

Region Asia-Pacific showed positive organic growth during the quarter. The large order for OKI Pulp & Paper of Indonesia, received during the second quarter of 2015, continued to have a positive impact on sales and profits. It is also evident that business with public sector banks in India has stabilised.

In Region EMEA, sales increased in France during the quarter. However demand was weak in the UK, which has had a negative impact on turnover.

In Region Americas, sales were down in the quarter due to delays in deliveries to major American banks and weaker demand in Latin America.

The positive trend in Cash Management sales continued in the second quarter. We can see that interest in solutions that streamline the handling of cash is steadily increasing in all regions. A first order for our closed cash management system, SafePay, was signed in South Africa during the quarter, for example. In Canada, Gunnebo received its first order for automated cash management from a retail chain.

In Entrance Security the mass transit segment had a strong quarter, with large orders received for the metro in Athens, Greece and a metro line in Beijing, China. We also received several orders in France for the installation of high-security doors for public buildings and retail. Overall, Entrance Security sales fell slightly during the quarter, primarily due to deferred deliveries in a number of projects.

There were varying trends within Safes & Vaults, where the positive development for sales of ATM safes continued into the second quarter. Sales of graded safes continued to fall, however, due to consolidation in the banking sector.

Sales of Electronic Security declined slightly during the quarter. This part of our offering is mainly sold on markets in Region EMEA and Region Americas. Several important orders were signed during the period with customers in both the private sector and public administration in Europe.

Q2 FINANCIAL RESULTS

We report an improved operating profit of MSEK 103 (102), despite negative currency effects of MSEK -8. Free cash flow improved by MSEK 69, and the operating margin for the period excluding non-recurring items was 7%."

SECOND QUARTER 2016

· Net sales amounted to MSEK 1,474 (1,516), organically they decreased by 1%.

· Operating profit amounted to MSEK 80 (80) and the operating margin increased to 5.4% (5.3%).

· Operating profit excluding items of a non-recurring nature increased to MSEK 103 (102) and the operating margin to 7.0% (6.7%).

· Profit after tax for the period totalled MSEK 42 (51).

· Earnings per share were SEK 0.55 (0.64).

· The free cash flow improved to MSEK 27 (-42).

JANUARY-JUNE 2016

· Net sales amounted to MSEK 2,864 (2,913), organically they were unchanged.

· Operating profit increased to MSEK 133 (109) and the operating margin increased to 4.6% (3.8%).

· Operating profit excluding items of a non-recurring nature improved to MSEK 161 (140) and the operating margin to 5.6% (4.8%).

· Profit after tax for the period improved to MSEK 62 (40).

· Earnings per share improved to SEK 0.81 (0.51).

· The free cash flow improved to MSEK 34 (-185).

Full report is attached to this press release.

Invitation to Telephone Conference on July 19, 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 July 19.

GUNNEBO AB (publ)

Group Communication

www.gunnebogroup.com

Gunnebo discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08.01 CET on July 19, 2016.

The Gunnebo Group is a global leader in security products, services and solutions with an offering covering cash management, safes and vaults, entrance security and electronic security for banks, retail, CIT, mass transit, public & commercial buildings and industrial & high-risk sites.

The Group has an annual turnover of €660 million, employs 5,500 people and has sales companies in 32 countries across Europe, Middle East & Africa, Asia-Pacific and the Americas as well as Channel Partners on over 100 additional markets.

We make your world safer.

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