Elanders

Quarterly Report • Apr 28, 2016

Press release from Elanders AB (publ) 2016-04-28

The first quarter

• Net sales amounted to MSEK 998 (1,006).
• The operating result before depreciation and write-downs (EBITDA) amounted to MSEK 85 (85).
• The operating result (EBIT) increased to MSEK 56 (54), while the operating margin increased to 5.6 (5.4)%.
• The result before tax increased to MSEK 51 (44), which is an improvement of 16%.
• The net result increased to MSEK 36 (27), which is an improvement of 29%, corresponding to SEK 1.34 (1.04) per share.
• Excluding acquisitions operating cash flow increased to MSEK 37 (16). Including acquisitions operating cash flow amounted to MSEK 3 (16).

COMMENTS BY THE CEO

The first quarter was characterized by a somewhat uncertain market and it's difficult to discern a clear trend in the total market. Net sales in the first quarter declined slightly. However, the operating margin continued to improve as a result of the concentration and further development of our offer.

Supply Chain Solutions continues to be successful and margins improved compared to last year. Our efforts to determinedly focus on underlying cash flows and reducing net debt in order to thereby lower financial costs improved the result before tax. Our strong financial position contributes to our ability to make acquisitions that can develop Elanders' offer and create organic growth.

Our transformation in the Print & Packaging segment is ongoing. At the beginning of the year Schmid Druck, which offers advanced packaging and special print solutions for marketing material, was integrated into the Group. The year has begun well for Schmid Druck and the Group sales team and its geographic range create a good platform to develop the acquired company's niche.

A number of large, and for Elanders important, customer contracts were renewed during the quarter. In addition, there are a number of interesting discussions taking place with both existing and potential customers about our offer of supply chain and print management services. We are also working on communicating more clearly to our customers what our integrated offer involves. There is a great deal of promise if we succeed in providing our customers with all or some of Elanders' broad product and service range. We are in the process of coordinating our operations and geography to take better advantage of this potential.

Magnus Nilsson President and Chief Executive Officer

THREE YEAR OVERVIEW

		First quarter			Full year
MSEK	2016	2015	2014	2015	2014	2013
Net sales	998	1,006	850	4,236	3,730	2,096
Operating expenses	-942	-952	-813	-3,944	-3,555	-1,965
Operating result	56	54	37	292	175	131
Net financial items	-6	-10	-9	-33	-35	-29
Result after financial items	51	44	28	259	140	102

GROUP

Our business

Elanders is a global supplier of integrated solutions in the areas supply chain management, print & packaging and e-commerce. The Group operates in more than 15 countries on four continents. Our most important markets are China, Germany, Singapore, Sweden, United Kingdom and the USA. Our major customers are primarily automotive, consumer electronics or white goods manufacturers.

Net sales and result

Compared to the same period last year net sales decreased by MSEK 8 to MSEK 998 (1,006), i.e. 1%. Cleared of exchange rate changes and acquisitions net sales contracted by around 2%, of which acquisitions were 1.5%. The operating result increased slightly to MSEK 56 (54), corresponding to an operating margin of 5.6 (5.4)%. Exchange rates changes in relation to the Swedish krona had no significant effect on the result.

Supply Chain Solutions

Elanders is one of the leading companies in the world in Global Supply Chain Management. Our services include taking responsibility for and optimizing customers' material and information flows, everything from sourcing and procurement combined with warehousing to after sales service.

	First quarter		Last	Full year
Supply Chain Solutions	2016	2015	12 months	2015
Net sales, MSEK	460.5	465.3	2,040.2	2,045.0
Operating result, MSEK	36.6	29.1	189.4	181.9
Operating margin, %	7.9	6.3	9.3	8.9
ROCE (moving 12 months), %	43.4	25.9	43.4	42.1
Average number of employees	1,405	1,439	1,422	1,430

The positive trend from last year continued in business area Supply Chain Solutions. Margins clearly improved even though net sales diminished slightly in the business area during the quarter. Our highest priority is on developing current customers and creating new business with new and existing customers that includes services from all our business areas. It is also vital to broaden Supply Chain Solutions' customer base to include more companies outside of the consumer electronics trade and reduce Elanders' dependence on that industry. In addition, we continue to look for acquisitions that supplements existing operations.

Print & Packaging Solutions

Through its innovative force and global presence the business area Print & Packaging offers costeffective solutions that can handle customer's local and global needs for printed material and packaging, often in combination with advanced order platforms on the Internet or just-in-time deliveries.

	First quarter		Last	Full year
Print & Packaging Solutions	2016	2015	12 months	2015
Net sales, MSEK	511.6	514.3	2,051.0	2,053.7
Operating result, MSEK	24.6	30.0	116.9	122.3
Operating margin, %	4.8	5.8	5.7	6.0
ROCE (moving 12 months), %	7.4	4.6	7.4	7.7
Average number of employees	1,720	1,688	1,684	1,676

The market for business area Print & Packaging has continued to be characterized by tough price pressure, contracting total volumes and overcapacity. Print & Packaging Asia has continued to struggle with diminishing demand from one of its larger customers which has affected both net sales and the result negatively. The Brazilian operations are going through a transition from focus on printing to focus on supply chain.

e-Commerce Solutions

fotokasten, myphotobook and d|o|m are the Group's brands in e-Commerce. Through the technical solutions for e-commerce provided by d|o|m, fotokasten and myphotobook offer a broad range of photo products primarily to consumers.

	First quarter		Last	Full year
e-Commerce Solutions	2016	2015	12 months	2015
Net sales, MSEK	43.3	46.0	234.3	237.0
Operating result, MSEK	0.6	2.6	16.4	18.4
Operating margin, %	1.4	5.7	7.0	7.8
ROCE (moving 12 months), %	10.8	17.2	10.8	13.6
Average number of employees	64	63	67	67

The business area has substantial seasonal sales variations and the fourth quarter is by and far the strongest. Generally all earnings for the year occurs in this quarter. Sales are just under last year's level and the result is lower as well. The reduction in the result compared with last year is primarily due to lower volumes from one of the Group's B2B customers as well as the periodizing of marketing campaigns. The campaign conducted in March this year was held in April last year.

Important events during the period

Book VAT

In February 2010 the European Court of Justice handed down a decision in the so-called Graphic Procédé case. In Sweden this is of particular importance for the differentiating line between printing companies production of products (printed matter) and services as well as applying so-called book VAT, i.e. a VAT rate of six percent. From 2010 to 2012 Elanders submitted claims for VAT refunds to the Swedish Tax Agency pertaining to the period 2004 to 2007. The reason for this is that some of Elanders' net sales subject to VAT during that period pertained to products and not services according to the differentiating line now considered correct. At the same time in the years from 2011 to 2013 the Swedish Tax Agency made consequential amendments regarding many of Elanders' customers who have then demanded compensation from Elanders.

On 22 December 2015 the Supreme Court of Sweden rendered a judgement which stated that customers have the legal right to demand compensation from the printing company as a result of the consequential amendments made by the Swedish Tax Agency on them. Nonetheless, this verdict is not expected to have any negative effect on either Elanders' result or financial position. The sum Elanders can be required to pay to customers has already been reported as an interest-bearing liability and is included in net debt.

Acquisitions

In December 2015 Elanders signed an agreement to acquire Schmid Druck, a niched packaging company in Germany. The business is consolidated into the Elanders Group as of 1 January 2016. In 2015 net sales in Schmid Druck were some MEUR 8.5 and the company reached an EBITDA level of MEUR 1.6 million. The acquisition is expected to contribute positively to Elanders' operating result already in 2016. The purchase price was EUR 4.5 million on a cash and debt-free basis and almost all of it has been settled in the beginning of January 2016. Acquisition costs were around MSEK 2 and charged the result in 2015.

Investments and depreciation

Net investments for the period amounted to MSEK 44 (2) Mkr, investments in 2016 includes acquisitions amounting to MSEK 34. Depreciation and write-downs amounted to MSEK 29 (31).

Financial position, cash flow and financing

Group net debt as of 31 March 2016 amounted to MSEK 750 compared to MSEK 738 at the beginning of the year. In the net change is an increase of MSEK 34 referring to payment of purchase sum for the acquisition of Schmid Druck. Operating cash flow, excluding acquisitions, for the period amounted to MSEK 37 (16).

Net debt in relation to rolling twelve month EBITDA increased to 1.8, compared to 1.7 at the beginning of the year.

At the end of June 2015 Elanders signed a new one-year contract for financing with our two principle banks. The contract contains an option for an extension of a another year. The facilities amounts to MEUR 30, MSEK 476 AND MUSD 75, i.e. a total of SEK 1.4 billion. All bank financing is recognized as short-term, even if it is long-term in its nature, since the duration of the agreement is only one year. At the beginning of April Elanders sought to use the option to extend the existing contract. However, an extension requires the approval of the banks.

Personnel

The average number of employees during the period was 3,198 (3,198), of which 276 (273) were in Sweden. At the end of the period the Group had 3,173 (3,146) employees, of which 278 (275) in Sweden.

PARENT COMPANY

The parent company has provided joint Group services during the period. The average number of employees during the period was 9 (7) and at the end of the year 9 (7).

OTHER INFORMATION

Elanders' offer

Elanders offers global integrated solutions in the areas supply chain management, print & packaging and e-commerce. Elanders can take an overall responsibility for complex and global deliveries encompassing procurement, warehousing, configuration, production and distribution. Our offer also includes order management, payment solutions and after sales services for our clients.

The services are provided by business-oriented employees. They use their expertise and our intelligent IT solutions to develop our customers' offers, which are often completely dependent on efficient product, component and service flows as well as traceability and information.

In addition to our offer to B2B markets the Group also sells photo products directly to consumers through its own brands fotokasten and myphotobook.

Goal and strategy

Elanders´ overall goal is to be a leader in global solutions in supply chain management, print & packaging and e-commerce with a world class integrated offer. Our strategy is to work in niches in each business area where the company can attain a leading position in the market. We will achieve this goal by being best at meeting customers' demands for efficiency and delivery. In order to be successful we need to continuously develop our offer as technology and customer needs evolve. Acquisitions play an important role in our company's development and provide competence, broader product and service offers and enlarge our customer base.

Risks and uncertainties

Elanders divides risks into circumstantial risk (the future of our products/services and business cycle sensitivity), financial risk (currency, interest, financing and credit risks) as well as business risk (customer concentration, operational risks, risks in operating expenses as well as contracts and disputes). These risks, together with a sensitivity analysis, are described in detail in the Annual Report 2015. Circumstances in the world around us since the Annual Report was published are not believed to have caused any significant risks or influenced the way in which the Group works with these compared to the description in the Annual Report 2015.

Seasonal variations

The Group's net sales, and thereby income, are affected by seasonal variations. Historically the fourth quarter has been the strongest.

Events after the balance sheet date

No significant events have occurred after the balance sheet date until the day this report was signed.

Forecast

No forecast is given for 2016.

Review and accounting principles

The company auditors have not reviewed this report. The quarterly report for the Group has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and for the parent company in accordance with the Annual Accounts Act.

The same accounting principles and calculation methods as those in the last Annual Report have been used.

Future reports from Elanders

Q2 2016	13 July 2016
Q3 2016	20 October 2016
Q4 2016	26 January 2017

Conference call

In connection to the issuing of the Quarterly Report for the first quarter 2016 Elanders will have a Press and Analysts conference call on 29 April 2016 at 9:30 a.m. CET, hosted by President and CEO Magnus Nilsson and CFO Andréas Wikner. Please see below details to join the conference:

Sweden:	+46 8 5051 3793
UK:	+44 20 3427 1905
USA:	+1 212 44 0896

Participant passcode: 1614532

Agenda

09:20 Conference number is opened 09:30 Review of the quarterly report 09:50 Q&A 10:30 End of the conference

During the telephone conference a presentation will be held. To access the presentation, please use this link:

http://www.livemeeting.com/cc/premconfeurope/join?id=1614532&role=attend&pw=pw8168

Contact information

Further information can be found on Elanders' website www.elanders.com or requested via e-mail info@elanders.com.

Questions concerning this report can be made to:

Magnus Nilsson Andréas Wikner Elanders AB (publ) Phone +46 31 750 07 50 Phone +46 31 750 07 50 P.O. Box 137,

President and CEO Chief Financial Officer (Company ID 556008-1621) 435 23 Mölnlycke, Sweden Phone +46 31 750 00 00

This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail

GROUP

Group - Income Statements

MSEK	First quarter 2016	2015	Last 12 months	Full year 2015
Net sales	998.1	1,005.7	4,228.5	4,236.1
Cost of products and services sold	-782.0	-778.6	-3,255.1	-3,252.0
Gross profit	216.1	227.2	973.1	984.1
Sales and administrative expenses	-173.5	-186.6	-704.4	-717.6
Other operating income	15.4	18.1	48.4	51.1
Other operating expenses	-2.0	-4.8	-22.9	-25.7
Operating result	56.1	53.9	294.1	291.9
Net financial items	-5.5	-9.6	-28.4	-32.6
Result after financial items	50.6	44.2	265.7	259.3
Income tax	-15.1	-16.8	-83.1	-84.8
Result for the period	35.5	27.5	182.6	174.5
Result for the period attributable to:
- parent company shareholders	35.5	27.5	182.6	174.5
Earnings per share, SEK 1) 2)	1.34	1.04	6.88	6.58
Average number of shares, in thousands	26,518	26,518	26,518	26,518
Outstanding shares at the end of the year, in thousands	26,518	26,518	26,518	26,518

1) Earnings per share before and after dilution.

2) Earnings per share calculated by dividing the result for the year by the average number of outstanding shares during the year.

Group - Statements of Comprehensive Income

MSEK	First quarter 2016	2015	Last 12 months	Full year 2015
Result for the period	35.5	27.5	182.6	174.5
Translation differences, net after tax	-31.5	111.9	-104.7	38.7
Cash flow hedges, net after tax	0.1	0.1	0.1	0.1
Hedging of net investment abroad, net after tax	13.0	-54.3	23.4	-43.9
Total items that may be reclassified to the income statement	-18.4	57.7	-81.2	-5.1
Other comprehensive income, net after tax	-18.4	57.7	-81.2	-5.1
Total comprehensive income for the period	17.1	85.2	101.4	169.4
Total comprehensive income attributable to: - parent company shareholders	17.1	85.2	101.4	169.4

Group - Statements of Cash Flow

	First quarter		Last	Full year
MSEK	2016	2015	12 months	2015
Result after financial items	50.6	44.2	265.7	259.3
Adjustments for items not included in cash flow	11.8	-10.2	123.6	101.6
Paid tax	-16.1	-27.1	-73.9	-84.9
Changes in working capital	-21.1	-25.6	-3.0	-7.5
Cash flow from operating activities	25.2	-18.7	312.4	268.5
Net investments in intangible and tangible assets	-10.2	-3.1	-53.0	-45.9
Acquisition of operations	-33.7	-	-33.7	-
Payments received regarding long-term holdings	0.6	1.0	3.9	4.3
Cash flow from investing activities	-43.3	-2.1	-82.9	-41.7
Amortization of loans	-25.4	-27.0	-105.3	-106.9
Changes in long- and short-term borrowing	43.0	-39.1	63.8	-18.2
Dividend to parent company shareholders	-	-	-29.2	-29.2
Cash flow from financing activities	17.6	-66.1	-70.7	-154.3
Cash flow for the period	-0.5	-86.9	158.9	72.5
Liquid funds at the beginning of the period	529.0	456.7	401.3	456.7
Translation difference	-6.3	31.5	-38.1	-0.3
Liquid funds at the end of the period	522.1	401.3	522.1	529.0
Net debt at the beginning of the period	737.7	895.3	945.2	895.3
Translation difference in net debt	-4.2	28.8	7.5	40.5
Net debt in acquired operations	-3.1	-	-3.1	-
Change in net debt	19.5	21.1	-199.7	-198.1
Net debt at the end of the period	750.0	945.2	750.0	737.7
Operating cash flow	3.5	15.9	331.9	344.3

Group – Statements of Financial Position

MSEK	31 Mar 2016	31 Mar 2015	31 Dec 2015
Assets
Intangible assets	1,277.9	1,313.6	1,268.8
Tangible assets	329.9	395.9	333.9
Other fixed assets	195.6	205.2	199.0
Total fixed assets	1,803.4	1,914.8	1,801.6
Inventories	271.6	261.6	265.9
Accounts receivable	778.1	900.4	824.6
Other current assets	149.0	151.1	138.7
Cash and cash equivalents	522.1	401.3	529.0
Total current assets	1,720.8	1,714.4	1,758.2
Total assets	3,524.2	3,629.2	3,559.8
Equity and liabilities
Equity	1,505.1	1,432.9	1,488.0
Liabilities
Non-interest-bearing long-term liabilities	84.4	86.5	83.2
Interest-bearing long-term liabilities	19.7	24.8	19.7
Total long-term liabilities	104.1	111.3	102.9
Non-interest-bearing current liabilities	662.7	763.4	721.9
Interest-bearing current liabilities	1,252.4	1,321.7	1,247.0
Total current liabilities	1,915.1	2,085.1	1,968.9
Total equity and liabilities	3,524.2	3,629.2	3,559.8

Group – Statements of Changes in Equity

MSEK	Equity attributable to parent company shareholders	Total equity
Opening balance on 1 Jan. 2015	1,347.7	1,347.7
Dividend to parent company shareholders	-29.2	-29.2
Total comprehensive income for the year	169.4	169.4
Closing balance on 31 Dec. 2015	1,488.0	1,488.0
Opening balance on 1 Jan. 2015	1,347.7	1,347.7
Total comprehensive income for the period	85.2	85.2
Closing balance on 31 Mar. 2015	1,432.9	1,432.9
Opening balance on 1 Jan. 2016	1,488.0	1,488.0
Total comprehensive income for the period	17.1	17.1
Closing balance on 31 Mar. 2016	1,505.1	1,505.1

Segment reporting

The three business areas are reported as reportable segments, since this is how the Group is governed and the President has been identified as the highest executive decision-maker. The operations within the business area Print & Packaging in each region are identified as operating segments. These have then been merged to create one reportable segment. In the other business areas the operating segments coincides with the reportable segments. The operations within each reportable segment have similar economic characteristics and resemble each other regarding the nature of their products and services, production processes and customer types. Sales between segments are made on markets terms.

Net sales

	First quarter		Last	Full year
MSEK	2016	2015	12 months	2015
Supply Chain Solutions	460.5	465.3	2,040.2	2,045.0
Print & Packaging Solutions	511.6	514.3	2,051.0	2,053.7
e-Commerce Solutions	43.3	46.0	234.3	237.0
Group functions	7.7	5.7	28.9	26.9
Eliminations	-25.0	-25.6	-125.9	-126.5
Group net sales	998.1	1,005.7	4,228.5	4,236.1

Operating result

	First quarter		Last	Full year
MSEK	2016	2015	12 months	2015
Supply Chain Solutions	36.6	29.1	189.7	181.9
Print & Packaging Solutions	24.6	30.0	116.9	122.3
e-Commerce Solutions	0.6	2.6	16.4	18.4
Group functions	-5.7	-7.8	-28.6	-30.7
Group operating result	56.1	53.9	294.1	291.9

Financial assets and liabilities measured at fair value

The financial instruments recognized at fair value in the Group's report on financial position are derivatives identified as hedging instruments. The derivatives consist of forward exchange and are used for hedging purposes. Valuation at fair value of forward exchange contracts is based on published forward rates on an active market. All derivates are therefore included in level 2 in the fair value hierarchy. Since all the financial instruments recognized at fair value are included in level 2 there have been no transfers between valuation levels. The table below presents fair value respective booked value per class of financial assets and liabilities, which are recorded gross.

MSEK	31 Mar	31 Mar	31 Dec
	2016	2015	2015
Other current assets – Derivative instruments in hedge accounting relationships	0.2	0.1	0.1

The fair value of other financial assets and liabilities valued at their amortized purchase price is estimated to be equivalent to their book value.

Acquisition of operations in 2016

Specification of acquisitions

Company	Acquisition date	Country	Number of employees

Schmid Druck & Medien GmbH January 2016 Germany 75

In December 2015 Elanders signed an agreement to acquire Schmid Druck, a niched packaging company in Germany. The business is consolidated into the Elanders Group as of 1 January 2016. In 2015 net sales in Schmid Druck were some MEUR 8.5 and the company reached an EBITDA level of MEUR 1.6 million. The acquisition is expected to contribute positively to Elanders' operating result already in 2016. The purchase price was EUR 4.5 million on a cash and debt-free basis and almost all of it has been settled in the beginning of January 2016. Acquisition costs were around MSEK 2 and charged the result in 2015. During the first quarter 2016 Schmid Druck have contributed with MEUR 2.4 to the net sales and MEUR 0.2 to the operating result.

Assets and liabilities in acquisitions

MSEK	Recorded values in acquired operation	Adjust ments to fair value	Recorded value in the Group
Fixed assets	9.9	7.9	17.8
Inventory	4.8	-	4.8
Accounts receivable	5.8	-	5.8
Other current assets	0.6	-	0.6
Cash and cash equivalents	3.1	-	3.1
Accounts payable	-2.2	-	-2.2
Other liabilities	-5.0	-1.4	-6.4
Identifiable net assets	17.0	6.5	23.5
Goodwill			17.8
Total			41.3
Less:
Unpaid purchase sums			-4.5
Cash and cash equivalents in acquisitions			-3.1
Negative effect on cash and cash equivalents for the Group			33.7

PARENT COMPANY

Parent Company – Income Statements

MSEK	First quarter 2016	2015	Last 12 months	Full year 2015
Net sales	7.7	5.7	28.4	26.4
Operating expenses	-9.7	-12.6	-52.8	-55.7
Operating result	-2.0	-6.9	-24.4	-29.3
Net financial items	14.0	-70.2	167.7	83.5
Result after financial items	12.0	-77.1	143.3	54.2
Income tax	-3.7	16.9	-5.3	15.3
Result for the period	8.3	-60.2	138.0	69.5

Parent Company - Statements of Comprehensive Income

	First quarter			Full year
MSEK	2016	2015	Last 12 months	2015
Result for the period	8.3	-60.2	138.0	69.5
Other comprehensive income	-	-	-	-
Total comprehensive income for the period	8.3	-60.2	138.0	69.5

Parent Company - Balance Sheets

MSEK	31 Mar 2016	31 Mar 2015	31 Dec 2015
Assets
Fixed assets	2,088.4	2,078.0	2,055.7
Current assets	161.5	154.4	212.8
Total assets	2,249.9	2,232.25	2,268.5
Equity, provisions and liabilities Equity	910.3	801.5	902.0
Provisions	2.9	2.9	2.9
Long-term liabilities	76.9	70.6	70.6
Current liabilities	1,259.7	1,357.5	1,293.0
Total equity, provisions and liabilities	2,249.9	2,232.5	2,268.5

Parent Company - Statements of Changes in Equity

MSEK	Share capital	Statutory reserve	Unrestricted equity	Total equity
Opening balance on 1 Jan. 2015	265.2	332.4	264.2	861.8
Dividend	-	-	-29.2	-29.2
Total comprehensive income for the year	-	-	69.5	69.5
Closing balance on 31 Dec. 2015	265.2	332.4	304.4	902.0
Opening balance on 1 Jan. 2015	265.2	332.4	264.2	861.8
Total comprehensive income for the period	-	-	-60.2	-60.2
Closing balance on 31 Mar. 2015	265.2	332.4	204.0	801.5
Opening balance on 1 Jan. 2016	265.2	332.4	304.4	902.0
Total comprehensive income for the period	-	-	8.3	8.3
Closing balance on 31 Mar. 2016	265.2	332.4	312.7	910.3

QUARTERLY DATA

MSEK	2016 Q1	2015 Q4	2015 Q3	2015 Q2	2015 Q1	2014 Q4	2014 Q3	2014 Q2	2014 Q1
Net sales	998	1,124	1,041	1,066	1,006	1,099	870	910	850
EBITDA	85	154	95	93	85	101	56	69	66
Operating result	56	111	64	63	54	71	27	40	37
Operating margin, %	5.6	9.9	6.2	5.9	5.4	6.4	3.1	4.4	4.4
Result after financial items	51	105	55	55	44	62	18	32	28
Result after tax	36	73	36	38	27	45	11	15	16
Earnings per share, SEK 1) 2)	1.34	2.77	1.35	1.43	1.04	1.70	0.43	0.61	0.69
Operating cash flow	3	237	-24	116	16	175	-21	81	-273
Cash flow per share, SEK2) 3)	0.95	8.86	-1.99	3.96	-0.71	6.00	-1.04	2.74	-1.55
Depreciation and write-downs	29	43	31	30	31	30	29	29	29
Net investments	43	14	7	19	2	7	8	10	270
Goodwill	1,211	1,200	1,217	1,209	1,224	1,205	1,168	1,150	1,127
Total assets	3,524	3,560	3,547	3,504	3,629	3,570	3,336	3,277	3,116
Equity	1,505	1,488	1,445	1,409	1,433	1,348	1,245	1,203	1,053
Equity per share, SEK 2)	56.76	56.11	54.48	53.13	54.03	50.82	46.93	45.36	45.01
Net debt	750	738	951	882	945	895	1,016	949	1,107
Capital employed	2,255	2,226	2,396	2,291	2,378	2,243	2,260	2,151	2,161
Return on total assets, % 4)	6.4	12.6	7.3	7.1	6.0	8.2	3.3	5.1	5.4
Return on equity, % 4)	9.5	20.0	10.0	10.7	7.9	14.0	3.7	5.3	6.2
Return on capital employed, % 4)	10.0	19.2	10.9	10.8	9.3	12.5	4.9	7.4	7.6
Debt/equity ratio	0.5	0.5	0.7	0.6	0.7	0.7	0.8	0.8	1.1
Equity ratio, %	42.7	42.0	40.7	40.2	39.5	37.8	37.3	36.7	33.8
Interest coverage ratio 5)	14.3	12.7	10.0	7.2	5.9	5.0	4.6	5.1	5.2
Number of employees at the end of	3,173	3,177	3,182	3,166	3,146	3,320	3,327	3,389	3,372

the period

1) There is no dilution.

2) Historic key ratios have been adjusted for the bonus issue element in the new share issue in 2014.

3) Cash flow per share refers to cash flow from operating activities.

4) Return ratios have been annualized.

5) Interest coverage ratio calculation is based on a moving 12 month period.

FIVE YEAR OVERVIEW – FULL YEAR

	2015	2014	2013	2012	2011
Net sales, MSEK	4,236	3,730	2,096	1,924	1,839
Result after financial items, MSEK	259	140	102	93	80
Result after tax, MSEK	175	88	70	45	60
Earnings per share, SEK 1) 2)	6.58	3.48	2.99	1.99	3.00
Cash flow from operating activities per share, SEK 2)	10.13	6.42	5.48	9.64	4.20
Equity per share, SEK 2)	56.11	50.82	44.39	40.77	43.75
Dividends per share, SEK 2)	2.20 3)	1.10	0.78	0.58	0.49
Operating margin, %	6.9	4.7	6.2	6.2	6.0
Return on total assets, %	8.2	5.9	5.6	5.6	5.5
Return on equity, %	12.1	7.4	7.0	4.8	7.1
Return on capital employed, %	12.6	8.7	7.7	7.4	7.1
Debt/equity ratio	0.5	0.7	0.7	0.7	0.8
Equity ratio, %	42.0	37.8	42.2	42.2	43.9
Average number of shares, in thousands 2)	26,518	25,204	23,395	22,279	20,102

1) There is no dilution.

2) Historic number of shares and historic key ratios have been adjusted for the bonus issue element in the new share issue in 2014. No adjustment of the historic number of shares has been made for the new share issue in 2012 since it did not entail any bonus issue element.

3) Proposed by the board.

FIVE YEAR OVERVIEW – THE FIRST QUARTER

	2016 Q1	2015 Q1	2014 Q1	2013 Q1	2012 Q1
Net sales, MSEK	998	1,006	850	493	460
Result after tax, MSEK	36	27	16	11	10
Earnings per share, SEK 1) 2)	1.34	1.04	0.69	0.45	0.49
Cash flow from operating activities per share, SEK 2)	0.95	-0.71	-1.55	-1.17	1.53
Equity per share, SEK 2)	56.76	54.03	45.01	40.35	43.87
Return on equity, % 3)	9.5	7.9	6.2	4.4	4.4
Return on capital employed, % 3)	10.0	9.3	7.6	5.4	5.0
Operating margin, %	5.6	5.4	4.4	4.6	4.2
Average number of shares, in thousands 2)	26,518	26,518	23,395	23,395	20,102

1) There is no dilution.

2) Historic number of shares and historic key ratios have been adjusted for the bonus issue element in the new share issue in 2014. No adjustment of the historic number of shares has been made for the new share issue in 2012 since it did not entail any bonus issue element.

3) Return ratios have been annualized.

DEFINITIONS

Average number of employees	The number of employees at the end of each month divided number of months.
Average number of shares	Weighted average number of shares outstanding during the period.
Capital employed	Total assets less liquid funds and non-interest bearing liabilities.
Debt/equity ratio	Net debt in relation to reported equity, including non controlling interests.
Earnings per share	Result for the year divided by the average number of shares.
EBIT	Earnings before interest and taxes; operating result.
EBITDA	Earnings before interest, taxes, depreciation and amortization; operating result plus depreciation, amortization and write-downs of intangible assets and tangible fixed assets.
Equity ratio	Equity, including non-controlling interests, in relation to total assets.
Interest coverage ratio	Operating result plus interest income divided by interest costs.
Net debt	Interest bearing liabilities less liquid funds.
Operating cash flow	Cash flow from operating activities and investing activities, adjusted for paid taxes and financial items.
Operating margin	Operating result in relation to net sales.
Return on capital employed (ROCE)	Operating result in relation to average capital employed.
Return on equity	Result for the year in relation to average equity.
Return on total assets	Operating result plus financial income in relation to average total assets.