Garo

Interim / Quarterly Report • May 4, 2017

Interim Report January - March 2017

Strong development in operations and a promising acquisition

• Net sales increased 21% to MSEK 181.6 (149.6).
• EBIT rose 54% to MSEK 23.6 (15.3*).
• EBIT margin amounted to 13.0% (10.2*).
• Net income was MSEK 18.5 (12.1*).
• Earnings per share amounted to SEK 1.85 (1.21*).
• The equity ratio was 50.8% (45.2).
• GARO Montage AB acquired Emedius AB
• Significant event after the close of the period: New president and CEO appointed

	Jan-Mar	Jan-Mar
MSEK	2017	2016	Change	R12**	2016
Net sales	181.6	149.6	21%	689.7	657.8
EBIT	23.6	2.7	774%	94.7	73.8
EBIT margin	13.0%	1.8%	-	13.7%	11.2%
Net income	18.5	2.3	704%	73.2	57.0
Earnings per share	1.85	0.23	704%	7.32	5.70
Adjusted EBIT	23.6	15.3*	54%	94.7	86.4
Adjusted EBIT margin	13.0%	10.2%*	-	13.7%	13.1%
Adjusted net income	18.5	12.1*	53%	73.2	66.8
Adjusted earnings per share,
SEK	1.85	1.21*	53%	7.32	6.68

*) Adjusted for items affecting comparability of MSEK -12.6 in EBIT and MSEK -9.8 in net income related to the IPO in March 2016.

**) Rolling 12 months, April 2016 - March 2017.

1

GARO develops, manufactures and supplies innovative products and systems for the electrical installations industry under its own brand. The company has operations in Sweden, Norway, Finland, Ireland and Poland and the Group is organized in two business segments GARO Sweden and GARO Other markets. GARO has a broad product assortment and is a market leader within several product areas. The Group had sales of approximately MSEK 658 in 2016 and has approximately 321 employees. Its head office is located in Gnosjö.

The business concept is "with a focus on innovation, sustainability and design, GARO provides profitable complete solutions for the electrical industry".

CEO's comments on the quarter

The year has started well for GARO with a strong development of operations and an acquisition to increase our capacity in our project business.

During the period, net sales increased 21% to MSEK 181.6 (149.6) driven by strong growth in GARO Sweden and a healthy development of construction-related product areas in GARO Other markets.

EBIT rose 54% to MSEK 23.6 (15.3 adjusted for items affecting comparability) and the EBIT margin grew to 13.0% (10.2). A sharp increase in volumes in combination with the implementation of productivity-enhancing programs contributed to improved gross margins and lower expenses in relation to sales.

Net sales for GARO Sweden rose 34%. The start of the year was extremely strong for the construction market and this naturally benefits our sales. The strongest performance was noted in the product area Project business, where we develop complete and customized solutions for our customers. We strongly believe in this area, and it is pleasing that during the period we acquired Emedius AB, which is a specialist in this field. We can expand our offering to our customers and thus strengthen our position in the Swedish market. In EV charging, we estimate that we grew in line or faster than the rapidly expanding market for electric cars. Sales of home chargers and semi-fast chargers have developed particularly positively.

Net sales for GARO Other Markets rose 2%. We noted a favorable development in constructionrelated products, in Ireland and Norway in particular, while sales of charger products were weaker than in the corresponding period in Norway previous year. In 2015, GARO received a major order for fast-chargers in Norway, and extensive deliveries to the contract continued in the first quarter 2016. Investments by our customers in fast-chargers are often in phases and market development is rarely linear. We have, therefore, found it difficult to match charger products' sales for the preceding period and still have tough comparative figures in Norway for the second quarter. We remain confident that we can soon report rising volumes again.

In the market for charger products, we see a continuing strong development in the underlying market for electric cars, which is strongly linked to the expansion of charging infrastructure. Overall, we expect continuing strong demand generally in the construction market in Sweden and Ireland and healthy demand in Norway and Finland. All in all, we have a positive view on the development in 2017.

Stefan Jonsson, President and CEO

Group

Net sales

The Group's net sales for the first quarter of 2017 increased 21% to MSEK 181.6 (149.6) as a result of organic growth of 15%, the acquisition of Emedius AB on 28 February 2017, which added 4% to growth, and a positive currency effect of 2%.

Analysis of change from	Jan-Mar	Jan-Mar	Jan-Mar	Jan-Mar
net sales	2017 (MSEK)	2017 (%)	2016 (MSEK)	2016 (%)
Year-earlier period	149.6	-	118.9	-
Organic growth	22.3	15%	34.6	29%
Acquisitions and structural changes	6.6	4%	-	-
Exchange-rate effects	3.1	2%	-3.9	-3%
Current period	181.6	21%	149.6	26%

The market remained strong in Sweden and Ireland in all product areas where GARO operates. The construction market in Norway also remained healthy. Growth in Finland was favorable. The Group's growth in the construction-related product areas was far higher than the average market growth for the period. The performance of EV charging remained strong in Sweden, in line with the market, but weaker in Norway.

EBIT

EBIT rose 54% to MSEK 23.6 (15.3 adjusted) in the period and the EBIT margin grew to 13.0% (10.2 adjusted). The growth in earnings was mainly due to volume increases, which in combination with a successful program to boost productivity, led to improved gross margins. Expenses were stable in relation to sales.

GARO Group		Jan-Mar	Jan-Mar		Jan-Dec
Key figures		2017	2016	R12	2016
Net sales	MSEK	181.6	149.6	689.7	657.8
Growth	%	21%	26%	18%	19%
EBIT	MSEK	23.6	2.7	94.7	73.8
EBIT margin	%	13.0%	1.8%	13.7%	11.2%
Adjusted EBIT		-	15,3*	-	86,4*
Adjusted EBIT margin		-	10.2%*	-	13.1%*
Investments	MSEK	17.9	2.1	28.6	12.8
Depreciation	MSEK	2.6	2.8	10.8	11.0
Return on equity	%	41.5%	28.3%	41.5%	32.4%
Equity ratio	%	50.8%	45.2%	50.8%	52.0%
Number of employees		321	256	321	274

*) Adjusted for items affecting comparability of a negative MSEK 12.6 in the first quarter of 2016 related to the IPO.

Net income

Net income for the first quarter amounted to MSEK 18.5 (2.3) and earnings per share amounted to MSEK 1.85 (0.23). Net income in the year-earlier period was charged with MSEK 9.8 in costs related to the IPO. A stronger underlying EBIT and stable net financial items also contributed to the improvement in net income. Tax for the period was MSEK 5.0 (0.5) and the average effective tax rate for the Group was 21.3% (18.2).

Acquisition of Emedius AB

GARO Montage AB, a company in the GARO Group, has acquired Emedius AB on February 28, 2017. Emedius markets and manufactures consumer units, distribution boards as well as switchgear under its own brand. In 2016, company sales amounted to MSEK 71.5 with an EBIT of MSEK 6.3. Emedius employs 36 people and is based in Gnosjö. The purchase price amounted to MSEK 31. Operations are run in rented premises, which have been transferred to Garo AB, in conjunction with the acquisition at a purchase price of MSEK 9.5.

Cash flow and investments

Cash flow from operating activities in the period amounted to MSEK 15.2 (-3.4), as a result of a stronger EBIT. Investments during the quarter amounted to MSEK 17.9 (2.1) excluding the acquisition. Property transferred in conjunction with the acquisition of Emedius AB is included in the amount of MSEK 9.5.

Liquidity and financial position

The Group's net debt at the end of the period amounted to MSEK 15.1 compared with MSEK 25.0 for the same period in 2016 and net cash of MSEK 17.3 at the end of 2016. Net debt increased from the turn of the year primarily as a result of the acquisition of Emedius AB and the premises.

Available liquidity in the Group, including unutilized overdraft facilities, amounted to MSEK 101.3 (47.4) and the equity ratio was 50.8% (45.2).

Parent Company

The Parent Company's operations encompass a significant part of the Swedish operations and Group Management, as well as certain Group-wide functions and the Group's Finance function. Net sales for the Parent Company in the first quarter amounted to MSEK 94.4 (75.6), up 25%. Of this amount, MSEK 28.4 (22.0) comprised internal sales to other Group companies. EBIT amounted to MSEK 7.7 (-9.6).

Operations and segments

GARO divides its operations into two operating segments based on how the Group is organized: GARO Sweden and GARO Other markets. GARO Other markets includes operations in Norway, Finland, Ireland and Poland.

Allocation of net sales by segment

Allocation of EBIT per segment

Group Management comprises seven individuals and the functions of: President and CEO, CFO, IR Director, CMO, CTO, CEO GARO Norway and two business area managers who are responsible for their respective business areas/segment.

Allocation of net sales by product area

GARO Sweden

Net sales and earnings

Net sales for GARO Sweden increased 34% to MSEK 121.8 (91.0) during the first quarter of 2017, with continued strong volume growth in all product areas. EBIT amounted to MSEK 16.2 (7.1 adjusted for items affecting comparability) and the EBIT margin improved to 13.3% (7.8 adjusted for items affecting comparability) as a result of higher volumes and gross margins and lower expenses in relation to sales.

Product areas

The market for Electrical distribution products, in which GARO is represented among all major wholesalers, is estimated to have grown by approximately 14% during the quarter. The market is expected to remain favorable albeit with quarterly variations. All construction-related product areas have enjoyed growth in line or higher than the underlying market.

The product area Project business reported the strongest performance during the quarter, whose position in the market has been significantly strengthened with the acquisition of Emedius AB. The company was consolidated within GARO from March 2017 and contributed MSEK 6.6 to group sales.

Product area Temporary electric installations also had a good start to the year and is benefiting from a high level of construction activity. The business is expanding and, in March, operations moved from the existing premises in Gnosjö to a new facility in Värnamo with more production space and good logistics opportunities.

Product area EV charging continued to grow strongly. GARO is a market leader in safe solutions for charging electric cars. Due to increased sales of electric cars, the network of charging stations is being expanded, which benefits GARO.

Operations

The focus of operations has been on meeting increased demand by expanding production capacity in all product areas, while maintaining short delivery times.

GARO Sweden		Jan-Mar	Jan-Mar		Jan-Dec
Key figures		2017	2016	R12	2016
Net sales	MSEK	121.8	91.0	449.7	419.0
Growth	%	34%	17%	48%	20%
EBIT	MSEK	16.2	-5.5	57.8	36.1
EBIT margin	%	13.3%	-6.0%	12.9%	8.6%
Adjusted EBIT*	MSEK	-	7.1*	-	48.7*
Adjusted EBIT margin*	%	-	7.8%*	-	11.6*
Investments	MSEK	14.3	2.0	22.6	10.3
Depreciation	MSEK	2.0	2.2	8.6	8.8
Number of employees		221	168	221	181

*) Adjusted for IPO expenses of MSEK -12.6 in the first quarter of 2016.

GARO Other markets

Net sales and earnings

Net sales in GARO Other markets rose 2% to MSEK 59.8 (58.6). Volume growth in constructionrelated product areas in general and product area Project business in particular was favorable while sales in EV charging were weaker than in the same period previous year.

GARO Norway has shown a positive development in construction-related products, but a negative performance in EV charging. In 2015, GARO received a large order for fast-chargers from a customer, which in 2015 and 2016, expanded a comprehensive network of fast-chargers in the rapidly growing electric car market in Norway. Deliveries for this contract were substantial in the second half of 2015 and were even more significant in the first quarter 2016. Comparative figures are therefore difficult to surpass. During the second and third quarters of 2016 GARO also delivered a number of fast-chargers to this customer, though not to the same extent as in the first quarter.

GARO Ireland continued to report healthy growth and is following the positive trend in construction while Garo Finland reported a weaker start to the year than in 2016.

EBIT decreased 10% to MSEK 7.4 (8.2) and EBIT margin amounted to 12.4% (14.0) as a result of weaker gross margins and slightly higher expenses in relation to sales.

Operations

During 2016, focus was on meeting increased demand and product launches.

GARO Other markets		Jan-Mar	Jan-Mar		Jan-Dec
Key figures		2017	2016	R12	2016
Net sales	MSEK	59.8	58.6	240.0	238.8
Growth	%	2%	43%	55%	17%
EBIT	MSEK	7.4	8.2	36.7	37.7
EBIT margin	%	12.4%	14.0%	15.3%	15.8%
Investments	MSEK	3.6	0.1	6.0	2.5
Depreciation	MSEK	0.6	0.6	2.2	2.2
Number of employees		100	88	100	93

Accounting policies

This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company's accounts were prepared in accordance with Chapter 9 of the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.

The accounting policies applied correspond with the accounting policies and valuation principles presented in the 2016 Annual Report. The 2016 Annual Report is available at www.garo.se.

Performance measures together with the definitions of performance measures in this report are deemed to be sufficient to comply with the new guidelines. The performance measures in this report take into account the nature of the operations and are deemed to provide relevant information to shareholders and other stakeholders and also enable comparability with other companies.

Risks and uncertainties

GARO's risks and uncertainties are described on pages 57-59 of the 2016 Annual Report. The Annual Report is available at www.garo.se. No significant changes have arisen that alter the view of risks and uncertainties.

Related-party transactions

Related-party transactions took place at the same extent as previously, by applying the same principles as those described in the 2016 Annual Report.

Significant event after the close of the period

Carl-Johan Dalin has been appointed new president and CEO for GARO AB to succeed Stefan Jonsson who after many years in the company will retire. Carl-Johan Dalin will take office during the fall 2017.

Annual General Meeting

The 2017 Annual General Meeting will take place on May 4, at 5:00 pm in Gnosjö. More information about the AGM is available on the company's website at the following address http://corporate.garo.se/bolagsstyrning/bolagsstammor.

Gnosjö, May 4, 2017

Chairman Board member Board member

Anders Pålsson Sofia Axelsson Rickard Blomqvist

Per Holmstedt Lars Svensson Stefan Jonsson

Board member Board member President and CEO

The information in this interim report is unaudited.

GARO Group

GARO Sweden

GARO Other markets

Consolidated income statement

	Jan-Mar	Jan-Mar		Jan-Dec
Amount in MSEK	2017	2016	R12	2016
Net sales	181.6	149.6	689.7	657.8
Other operating income	0.2	0.3	1.9	2.0
Total income	181.8	149.9	691.6	659.8
Operating expenses
Raw materials and consumables	-92.6	-80.4	-353.2	-341.0
Other external expenses	-22.3	-17.8	-86.2	-81.8
Personnel expenses	-40.7	-33.6	-146.7	-139.6
Depreciation/amortization of intangible and	-	-	-
tangible assets	-2.6	-2.8	-10.8	-11.0
Other operating expenses	-	-12.6	-	-12.6
EBIT	23.6	2.7	94.7	73.8
Result from financial items
Net financial income/expenses	-0.1	0.1	-1.2	-1.0
Profit before tax	23.5	2.8	93.5	72.8
Income tax	-5.0	-0.5	-20.3	-15.8
Net income	18.5	2.3	73.2	57.0
Other comprehensive income: Items that may be reclassified to the income statement
Translation differences	0.8	0.3	2.1	1.6
Other net comprehensive income	0.8	0.3	75.3	58.6
Total comprehensive income for the period	19.3	2.6	75.3	58.6
Net income and total comprehensive income for the period is attributable to shareholders of the Parent Company
Key ratios per share
Average number of shares	10,000,000	10,000,000	10,000,000	10,000,000
Earnings per share, SEK	1.85	0.23	7.32	5.70

Consolidated balance sheet

Amount in MSEK	Mar 31, 2017	Mar 31, 2016	Dec 31, 2016
ASSETS
Fixed assets
Intangible assets	35.0	8.1	8.6
Tangible assets	73.2	57.2	58.8
Financial assets	-	-	-
Total fixed assets	108.2	65.3	67.4
Current assets
Inventories	110.6	94.8	97.3
Accounts receivable	170.8	131.5	163.5
Other current receivables	6.9	4.1	4.2
Cash and cash equivalents	24.0	12.9	41.6
Total current assets	312.3	243.3	306.6
TOTAL ASSETS	420.5	308.6	374.0
EQUITY AND LIABILITIES
Equity
Share capital	20.0	20.0	20.0
Other reserves	0.6	-1.4	-0.1
Other equity including net income for the period	193.1	120.9	174.5
Total equity	213.7	139.5	194.4
Long-term liabilities
Interest-bearing liabilities	19.2	11.9	10.5
Other provisions	1.5	0.9	1.6
Deferred tax liabilities	5.0	6.0	4.6
Total long-term liabilities	25.7	18.8	16.7
Short-term liabilities
Interest-bearing liabilities	19.9	26.0	13.8
Accounts payable	82.8	63.8	67.4
Other short-term liabilities	78.4	60.5	81.7
Total short-term liabilities	181.4	150.3	162.9
TOTAL EQUITY AND LIABILITIES	420.5	308.6	374.0
Key figures
Net debt	15.1	25.0	-17.3
Equity ratio	50.8%	45.2%	52.0%
Equity per share, SEK	21.4	14.0	19.4
Outstanding number of shares, '000	10,000.0	10,000.0	10,000.0

Changes in consolidated equity

Equity attributable to shareholders in the
--------------------------------------------	--	--	--	--

Parent Company	Share		Retained	Total
Amount in MSEK	capital	Reserves	profit	equity
Equity at January 1, 2016	14.0	-1.7	144.6	156.9
Net income for the period	-	-	57.0	57.0
Other comprehensive income for the period	-	1.6	-	1.6
Stock dividend per January 12, 2016	6.0	-	-6.0	-
Dividend to shareholders	-	-	-20.3	-20.3
Change in value, liability, put option	-	-	-0.8	-0.8
Closing equity, December 31, 2016	20.0	-0.1	174.5	194.4
Equity at January 1, 2017	20.0	-0.1	174.5	194.4
Net income for the period	-	-	18.5	18.5
Other comprehensive income for the period	-	0.8	-	0.8
Closing equity, March 31, 2017	20.0	0.6	193.1	213.7

Condensed consolidated cash-flow statement

	Jan-Mar	Jan-Mar		Jan-Dec
Amount in MSEK	2017	2016	R12	2016
Operating activities
Cash flow from operating activities
before changes in working capital	16.1	-2.6	83.5	64.8
Cash flow from changes in working capital	-0.9	-0.8	-16.4	-16.4
Cash flow from operating activities	15.2	-3.4	67.1	48.4
Investing activities
Investments in intangible assets	-1.8	-0.5	-4.9	-3.6
Acquisition of subsidiaries	-29.8	-	-29.8
Investments in tangible assets	-16.1	-1.6	-23.7	-9.2
Disposal of tangible assets	0.3	-	1.4	1.1
Cash flow from investing activities	-47.4	-2.1	-57.0	-11.7
Financing activities
Net borrowing/amortization of loans	14.7	15.1	-0.2	0.3
Dividend paid to shareholders	-	-20.0	-0.3	-20.3
Cash flow from financing activities	14.7	-4.9	-0.5	-20.0
Cash flow for the period	-17.5	-10.4	9.6	16.7
Currency effect in cash and cash equivalents	-0.1	0.1	1.5	1.7
Cash and cash equivalents, start of the period	41.6	23.2	12.9	23.2
Cash and cash equivalents, end of the period	24.0	12.9	24.0	41.6

	Jan-Mar	Jan-Mar	Jan-Dec
Amount in MSEK	2017	2016	2016
Net sales	94.4	75.6	357.3
Other operating income	1.7	1.7	7.2
Total income	96.1	77.3	364.5
Operating expenses
Raw materials and consumables	-55.1	-45.5	-210.1
Other external expenses	-11.2	-9.0	-43.7
Personnel expenses	-20.2	-17.8	-73.5
Depreciation/amortization of tangible and intangible assets	-1.9	-2.0	-8.3
Other operating expenses	-	-12.6	-12.6
EBIT	7.7	-9.6	16.3
Result from financial items
Profit from participations in Group companies	-	-	16.9
Net interest income and similar items	0.1	0.6	1.0
Net interest expenses and similar items	-0.4	-0.3	-0.8
Income after financial items	7.4	-9.3	33.4
Appropriations	-	-	14.4
Income tax	-1.6	2.0	-7.0
Net income	5.8	-7.3	40.8

Parent Company income statement

Parent Company balance sheet

Amount in MSEK	2017-03-31	2016-03-31	2016-12-31
ASSETS
Intangible assets	8.1	7.2	7.4
Tangible assets	46.8	35.0	35.8
Participations in Group companies	12.8	12.8	12.8
Other financial assets	28.5	9.1	8.0
Total fixed assets	96.2	64.1	64.0
Current assets
Inventories	49.7	44.0	44.2
Accounts receivable	69.8	53.9	78.3
Other receivables	35.1	45.6	49.4
Cash and cash equivalents	11.3	3.8	18.2
Total current assets	165.9	147.3	190.1
TOTAL ASSETS	262.1	211.4	254.1
EQUITY AND LIABILITIES
Share capital	20.0	20.0	20.0
Fund for internal development expenses	0.8	-	0.8
Statutory reserve	2.6	2.6	2.6
Non-restricted equity including net income for the period	133.9	80.8	128.1
Total equity	157.3	103.4	151.5
Untaxed reserves	6.2	10.6	6.2
Provisions	4.9	4.6	4.9
Liabilities
Long-term interest-bearing liabilities	16.3	9.0	7.8
Short-term interest-bearing liabilities	2.8	12.5	1.8
Short-term non-interest-bearing liabilities	74.6	71.3	81.9
Total liabilities	93.7	92.8	91.5
TOTAL EQUITY AND LIABILITIES	262.1	211.4	254.1

	Sweden		Other markets		Elimination		Group
Segment information	Jan-Mar 2017	Jan-Mar 2016	Jan-Mar 2017	Jan-Mar 2016	Jan-Mar 2017	Jan-Mar 2016	Jan-Mar 2017	Jan-Mar 2016
Sales
Total net sales	151.2	114.4	81.1	72.8	-50.7	-37.6	181.6	149.6
Internal net sales	-29.4	-23.4	-21.3	-14.2	50.7	37.6	-	-
External net sales	121.8	91.0	59.8	58.6	-	-	181.6	149.6
EBIT	16.2	-5.5	7.4	8.2	-	-	23.6	2.7
Net financial income/expense s	-	-	-	-	-	-	-0.1	0.1
Taxes for the period	-	-	-	-	-	-	-5.0	-0.5
Net income for the period	-	-	-	-	-	-	18.5	2.3

Sales and EBIT by segment

GARO Group		Jan Mar	Jan Mar		Full year	full year	full year	full year
Multi-year overview and key ratios		2017	2016	R12	2016	2015	2014	2013
Net sales	MSEK	181.6	149.6	689.7	657.8	554.1	441.7	383.1
Growth	%	21%	26%	18%	19%	25%	15%	1%
EBITDA	MSEK	26.2	5.5	105.5	84.8	74.3	50.6	34.8
EBITDA margin	%	14.4%	3.7%	15.3%	12.9%	13.4%	11.5%	9.1%
EBIT	MSEK	23.6	2.7	94.7	73.8	62.4	39.8	24.0
EBIT margin	%	13.0%	1.8%	13.7%	11.2%	11.3%	9.0%	6.3%
Adjusted EBIT		-	15,3*	-	86,4*	62.4	39.8	24.0
Adjusted EBIT margin	%	-	10.2%*	-	13.1%*	11.3%	9.0%	6.3%
Investments	MSEK	17.9	2.1	28.6	12.8	13.8	6.3	10.4
Depreciation	MSEK	2.6	2.8	10.8	11.0	11.9	10.8	10.8
Return on equity*	%	41.5%	28.3%	41.5%	32.4%	31.3%	17.1%	11.7%
Equity ratio	%	50.8%	45.2%	50.8%	52.0%	49.8%	48.5%	51.3%
Net debt	MSEK	15.1	25.0	15.1	-17.3	-0.4	19.3	39.5
Net debt/EBITDA*	multiples	0.1	0.4	0.1	-0.2	0.0	0.4	1.1
Number of employees		321	256	321	274	254	244	224

*) Key ratios are calculated on last 12 months.

**) Adjusted for IPO expenses of MSEK -12.6 in the first quarter of 2016.

Quarterly figures

Consolidated income statement Amount in MSEK	Q1 2017	Q4 2016	Q3 2016	Q2 2016	Q1 2016	Q4 2015	Q3 2015	Q2 2015	Q1 2015
Net sales	181.6	200.9	148.2	159.1	149.6	167.4	136.2	131.6	118.9
Operating expenses	-158.0	-170.6	-125.9	-140.6	-146.9	-151.0	-115.7	-117.7	-107.3
EBIT	23.6	30.3	22.3	18.5	2.7	16.4	20.5	13.9	11.6
Net financial income/expenses	-0.1	-2.2	0.1	1.0	0.1	-1.5	-0.4	-1.0	-0.2
Profit before tax	23.5	28.1	22.4	19.5	2.8	14.9	20.1	12.9	11.4
Tax	-5.0	-6.4	-4.8	-4.1	-0.5	-3.9	-4.1	-3.2	-2.3
Net income	18.5	21.7	17.6	15.4	2.3	11.0	16.0	9.7	9.1
Net sales per segment	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Amount in MSEK	2017	2016	2016	2016	2016	2015	2015	2015	2015
GARO Sweden	121.8	135.9	94.5	97.6	91.0	105.3	82.9	83.7	78.0
GARO Other markets	59.8	65.0	53.7	61.5	58.6	62.1	53.3	47.9	40.9
Total Group	181.6	200.9	148.2	159.1	149.6	167.4	136.2	131.6	118.9
EBIT per segment	Kv1	Kv4	Kv3	Kv2	Kv1	Kv4	Q3	Q2	Q1
Amount in MSEK	2017	2016	2016	2016	2016	2015	2015	2015	2015
GARO Sweden	16.2	19.3	13.3	9.0	-5.5	8.2	13.0	6.0	7.0
GARO Other markets	7.4	11.0	9.0	9.5	8.2	8.2	7.5	7.9	4.6
Total Group	23.6	30.3	22.3	18.5	2.7	16.4	20.5	13.9	11.6

Definitions EBITDA: Earnings before interest, tax, depreciation and amortization EBIT: Earnings before interest and tax EBITDA margin, %: EBITDA as a percentage of net sales for the period EBIT margin, %: EBIT as a percentage of net sales for the period Net debt: Interest-bearing liabilities minus assets including cash and cash equivalents Net debt/ EBITDA, multiples: Net debt at the end of the period as a percentage of EBITDA for the past 12 months R12: Rolling 12 months Equity per share: Equity divided by the number of shares at the end of the period Return on equity, %: Net income for the past 12 months divided by average equity Equity ratio, %: Equity as a percentage of total assets Earnings per share: Earnings for the period divided by average number of shares

Teleconference

A teleconference for investors will be held on May 4 at 3:15 p.m.

Telephone numbers: Sweden: 08-50 510 036 International: +44 20 3059 8125

The presentation used during this teleconference can be downloaded at www.garo.se under Investor Relations. A recording of the teleconference will be available on the company's website afterwards.

For more information, please contact:

Stefan Jonsson, President and CEO: 070-588 66 73 Lars Kvarnsund, CFO: 070-516 59 98 Patrik Linzenbold, IR Director: 0708-252 630

Financial calendar

Second quarter of 2017: August 25

Third quarter of 2017: October 31

This information is such information that GARO aktiebolag is obligated to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the abovementioned contact persons on 4 May, 2017, at 3.00 p.m.

Forward-looking information

Certain statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the specifically mentioned factors, other factors may have a material impact on the actual outcome. Such factors include, but are not limited to, the general economic climate, exchange-rate fluctuations and changes in interest rates, political developments, the impact of competing products and the prices of such products, difficulties associated with product development and commercialization, technical problems, interruptions to the access to raw materials and credit losses attributable to major customers.