Bergman & Beving

Quarterly Report • Feb 10, 2015

B&B TOOLS provides the industrial and construction sectors in northern Europe with industrial consumables, industrial components and related services. The Group has annual revenue of approximately SEK 7.8 billion and approximately 2,700 employees.

INTERIM REPORT – 9 MONTHS

1 April-31 December 2014

Third quarter (1 October-31 December 2014)

• Revenue increased by 4 percent to MSEK 2,027 (1,954).
• Operating profit rose by 22 percent to MSEK 104 (85), corresponding to an operating margin of 5.1 percent (4.4).
• Profit after net financial items increased to MSEK 96 (74).
• Profit after taxes amounted to MSEK 72 (55).
• Earnings per share increased to SEK 2.55 (1.95). For the most recent 12-month period, earnings per share amounted to SEK 10.70 (6.35).
• The return on equity for the most recent 12-month period was 13 percent (9).
• The equity/assets ratio at the end of the period was 46 percent (44).

Reporting period – 9 months (1 April-31 December 2014)

• Revenue increased by 4 percent to MSEK 5,909 (5,688).
• Operating profit rose by 43 percent to MSEK 339 (237) and the operating margin was 5.7 percent (4.2).
• Profit after net financial items increased to MSEK 308 (196).
• Profit after taxes rose by 59 percent to MSEK 231 (145).

		QUARTER			REPORTING PERIOD		FULL-YEAR
	2014	3 MONTHS ENDING 31 DEC 2013	Change	2014	2013	9 MONTHS ENDING 31 DEC Change	2014	12 MONTHS ENDING 31 DEC 2013	Change
Revenue, MSEK	2,027	1,954	+4%	5,909	5,688	+4%	7,869	7,539	+4%
Operating profit, MSEK	104	85	+22%	339	237	+43%	442	305	+45%
Profit after net financial items, MSEK	96	74	+30%	308	196	+57%	398	250	+59%
Net profit for the period (after taxes), MSEK	72	55	+31%	231	145	+59%	300	179	+68%
Earnings per share, SEK	2.55	1.95	+31%	8.20	5.15	+59%	10.70	6.35	+69%
Operating margin	5.1%	4.4%		5.7%	4.2%		5.6%	4.0%
Profit margin	4.7%	3.8%		5.2%	3.4%		5.1%	3.3%
Return on equity							13%	9%
Equity per share, SEK				82.35	77.25	+7%
Equity/assets ratio				46%	44%
Number of employees at the end of the period				2,678	2,688	–0%

B&B TOOLS IN SUMMARY

PRESIDENT'S STATEMENT

Although the overall business situation was relatively stable in the third quarter, the market fragmentation remains – whereby parts of our operations are performing well, while others are affected by more difficult market conditions. The positive profit development for, among others, TOOLS Sweden and several of our Business Areas continued during the quarter. The Norwegian operations, in particular, were impacted by weaker demand during the autumn linked to, for example, the offshore industry.

The volume, measured in local currency and adjusted for the number of trading days, increased by 3 percent compared with the preceding year and operating profit rose by 22 percent to MSEK 104, including a capital gain of approximately MSEK 5, net, for property sales completed during the quarter. Our operational net loan liability has declined since the preceding year by MSEK 200 to MSEK 557 (757), in part due to efficiency gains in the working capital.

Our focus on customer proximity, sales and contribution ratios, and restraint in terms of costs, remains a top priority.

Stockholm, February 2015

Ulf Lilius President & CEO

PROFIT AND REVENUE

Third quarter (1 October-31 December 2014)

Revenue for the third quarter rose by 4 percent to MSEK 2,027 (1,954). Exchange-rate translation effects had an impact of MSEK +18 (–40) on revenue. Revenue for comparable units, measured in local currency and adjusted for the number of trading days, rose by approximately 3 percent during the quarter.

In the third quarter, operating profit rose by 22 percent to MSEK 104 (85). Exchange-rate translation effects had an impact of MSEK +1 (–2) on operating profit. The operating margin was 5.1 percent (4.4). Profit after net financial items amounted to MSEK 96 (74) and profit after taxes to MSEK 72 (55) for the quarter, corresponding to earnings per share of SEK 2.55 (1.95).

Reporting period – 9 months (1 April-31 December 2014)

Revenue for the full reporting period amounted to MSEK 5,909 (5,688). Exchange-rate translation effects had an impact of MSEK +55 (–102) on revenue. For comparable units, measured in local currency and adjusted for the number of trading days, revenue rose by approximately 3 percent during the reporting period.

Operating profit for the reporting period rose by 43 percent to MSEK 339 (237). Operating profit was charged with depreciation and impairment losses of MSEK –19 (–28) on tangible non-current assets and amortisation and impairment losses of MSEK –2 (–4) on intangible non-current assets. Exchange-rate translation effects had a net impact of MSEK +4 (–7) on operating profit. The operating margin increased to 5.7 percent (4.2).

Profit after net financial items rose by 57 percent to MSEK 308 (196) and net financial items amounted to MSEK –31 (–41). The profit margin was 5.2 percent (3.4). Profit after taxes amounted to MSEK 231 (145), corresponding to earnings per share of SEK 8.20 (5.15). Earnings per share for the most recent 12-month period amounted to SEK 10.70 (6.35).

OPERATING PROFIT AND REVENUE

REVENUE

OPERATIONS

The B&B TOOLS Group comprises two operating segments – TOOLS / Momentum and Business Areas – as well as shared administrative, logistics and IT functions. The Group's operating segments currently include nine operating areas in total.

B&B TOOLS GROUP

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
	OCT-DEC		APR-DEC		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Revenue	2,027	1,954	5,909	5,688	7,869	7,648
Operating profit	104	85	339	237	442	340
Operating margin	5.1%	4.4%	5.7%	4.2%	5.6%	4.4%

TOOLS / Momentum – sales directly to end customers

TOOLS and Momentum are the B&B TOOLS Group's market channels for industrial consumables and industrial components for Nordic industry. Via TOOLS and Momentum, the Group has a presence in some 200 locations in Sweden, Norway and Finland.

Revenue for comparable units within TOOLS / Momentum, measured in local currency, remained largely unchanged in the third quarter.

In a continued cautious market, revenue for TOOLS Sweden grew by 1 percent during the quarter (adjusted for the number of trading days in 2014 compared with the preceding year). At the same time, activities implemented to increase efficiency continue to yield results and the unit reported an operating profit for the third consecutive quarter.

Demand showed a negative trend in the autumn, particularly in the offshore industry in Norway, and measured in local currency, revenue for TOOLS Norway declined by a total of –4 percent during the quarter. Operating profit declined by MSEK –4. The business is continuously taking measures to increase its market shares with new customers and simultaneously to adjust cost levels to a lower demand.

TOOLS Finland continues to face a cautious market, primarily in the industrial sector. Despite this, the business increased its revenue by

TOOLS / MOMENTUM

	QUARTER (3 MOS.)
	REVENUE OCT-DEC		OPERATING PROFIT OCT-DEC		OPERATING MARGIN OCT-DEC
MSEK	2014	2013	2014	2013	2014	2013
TOOLS Sweden	515	507	5	–3	1.0%	–0.6%
TOOLS Norway	390	404	10	14	2.6%	3.5%
TOOLS Finland	196	180	0	2	0.0%	1.1%
Momentum	247	238	26	27	10.5%	11.3%
Eliminations	–16	–14	0	0	–	–
TOTAL	1,332	1,315	41	40	3.1%	3.0%

REPORTING PERIOD (9 MOS.)
	REVENUE APR-DEC		OPERATING PROFIT APR-DEC		OPERATING MARGIN APR-DEC
MSEK	2014	2013	2014	2013	2014	2013
TOOLS Sweden	1,426	1,420	10	–28	0.7%	–2.0%
TOOLS Norway	1,176	1,199	52	50	4.4%	4.2%
TOOLS Finland	567	529	3	2	0.5%	0.4%
Momentum	711	709	81	86	11.4%	12.1%
Eliminations	–41	–36	0	–1	–	–
TOTAL	3,839	3,821	146	109	3.8%	2.9%

FULL-YEAR (12 MOS.) REVENUE OPERATING PROFIT OPERATING MARGIN ROLLING 12 MOS. 2013/ 2014 ROLLING 12 MOS. 2013/ 2014 ROLLING 12 MOS. 2013/ MSEK 2014 TOOLS Sweden 1,884 1,878 –7 –45 –0.4% –2.4% TOOLS Norway 1,588 1,611 70 68 4.4% 4.2% TOOLS Finland 739 701 3 2 0.4% 0.3% Momentum 953 951 115 120 12.1% 12.6% Eliminations –48 –43 1 0 – – TOTAL 5,116 5,098 182 145 3.6% 2.8%

approximately 2 percent (measured in local currency and adjusted for the number of trading days) for the quarter, due to a stronger performance attributable to certain major customers and other sales efforts.

Momentum also faces a sluggish industrial market, particularly in Sweden, but increased its revenue by approximately 3 percent during the quarter (measured in local currency and adjusted for the number of trading days). Momentum's focus on areas such as service workshops in Sweden continued to develop favourably. The operating margin was 10.5 percent.

BUSINESS AREAS

	QUARTER (3 MOS.)
MSEK	2014	OPERATING REVENUE PROFIT OCT-DEC OCT-DEC 2013 2014 2013		OPERATING MARGIN OCT-DEC 2014	2013
Luna	280	271	24	21	8.6%	7.7%
Skydda	320	311	23	19	7.2%	6.1%
ESSVE	176	172	7	6	4.0%	3.5%
Grunda	126	121	5	3	4.0%	2.5%
Gigant	106	106	1	4	0.9%	3.8%
Eliminations	0	–1	–1	0	–	–
TOTAL	1,008	980	59	53	5.9%	5.4%

Business Areas – sales via resellers

The Group's five Business Areas – Luna, Skydda, ESSVE, Grunda and Gigant – supply TOOLS and other market channels with industrial consumables and related services.

Revenue for comparable units, measured in local currency, for the Group's Business Areas increased by a total of 4 percent during the third quarter.

BUSINESS AREAS – cont.
REPORTING PERIOD (9 MOS.) OPERATING OPERATING REVENUE PROFIT MARGIN
MSEK	2014	APR-DEC APR-DEC APR-DEC 2013 2014 2013 2014 2013
Luna	820	796	75	58	9.1%	7.3%
Skydda	934	864	74	56	7.9%	6.5%
ESSVE	583	550	48	26	8.2%	4.7%
Grunda	372	360	10	7	2.7%	1.9%
Gigant	296	285	7	–2	2.4%	–0.7%
Eliminations	–8	–5 –1 0 – –
TOTAL	2,997	2,850	213	145	7.1%	5.1%

	FULL-YEAR (12 MOS.)
	REVENUE		OPERATING PROFIT		OPERATING MARGIN
MSEK	ROLLING 12 MOS.	2013/ 2014	ROLLING 12 MOS.	2013/ 2014	ROLLING 12 MOS.	2013/ 2014
Luna	1,095	1,071	101	84	9.2%	7.8%
Skydda	1,238	1,168	104	86	8.4%	7.4%
ESSVE	800	767	65	43	8.1%	5.6%
Grunda	496	484	13	10	2.6%	2.1%
Gigant	401	390	10	1	2.5%	0.3%
Eliminations	–12	–9	–2	–1	–	–
TOTAL	4,018	3,871	291	223	7.2%	5.8%

1 APRIL – 31 DECEMBER 2014

While the total revenue and earnings trend for the Business Areas remained positive during the quarter, the outcome varied for each business. The cautious market trend in Nordic industry in general, and lower demand in the offshore industry in Norway in particular, had a negative impact, while strong growth for a number of customers, primarily in the construction materials area, continued.

Due to several factors, including increased sales of proprietary product brands to international customers, Luna increased its revenue by approximately 3 percent during the quarter (measured in local currency and adjusted for the number of trading days), and reported an operating margin of 8.6 percent. Skydda's revenue was positively impacted by continued growth attributable to customers in the construction materials area. Operating profit rose by MSEK 4 for the quarter.

Revenue for ESSVE rose by 13 percent (measured in local currency and adjusted for the number of trading days) during the quarter with a continued positive trend attributable to chain customers in the construction materials area in Norway and Sweden.

The earnings development was impacted by a number of factors including an even stronger product mix and investments in order to further strengthen ESSVE's market position.

Grunda increased its revenue by approximately 4 percent during the quarter (measured in local currency and adjusted for the number of trading days), an increase primarily attributable to the construction materials area in Norway and Sweden. Gigant's revenue remained largely unchanged during the quarter (measured in local currency and adjusted for the number of trading days), while operating profit declined by MSEK –3. The business is continuously taking measures to increase efficiency.

Group-wide and eliminations

An operating loss of MSEK –18 (–5) was reported for "Group-wide" for the reporting period. Capital gains and losses from the sale of properties during the reporting period had a positive effect of approximately MSEK 1, net, on operating profit.

The Parent Company's revenue amounted to MSEK 22 (28) and profit after net financial items to MSEK 217 (466). These results include Group contributions, intra-Group dividends and corresponding items totalling MSEK 172 (390).

Eliminations for intra-Group inventory gains had an impact of MSEK –2 (–12) on earnings during the reporting period.

CORPORATE ACQUISITIONS

No corporate acquisitions were implemented during the reporting period.

PROFITABILITY, CASH FLOW AND FINANCIAL POSITION

The Group's profitability, measured as the return on working capital, P/WC (operating profit in relation to working capital1 ), increased to 25 percent (18) for the most recent 12-month period. The return on capital employed for the corresponding period was 13 percent (9) and the return on equity was 13 percent (9).

Cash flow from operating activities before changes in working capital for the reporting period totalled MSEK 296 (155). Funds tied up in working capital declined MSEK 11. During the period, inventories increased by MSEK 124, while operating receivables declined by MSEK 162. Operating liabilities declined by MSEK 27. Accordingly, cash flow from operating activities for the period amounted to MSEK 307 (282). Inventories increased during the period due to the revenue growth primarily in Skydda and ESSVE.

Cash flow for the period was also impacted in a net amount of MSEK –37 (–38) pertaining to acquisition and sale of tangible non-current assets, and a net amount of MSEK +89 (+18) pertaining to acquisition and sale of subsidiaries and other business units. During the reporting period, 20 Group properties in Sweden and Finland were disposed of, which had a marginal positive impact on earnings per share.

¹ Working capital = Inventories + Accounts receivable – Accounts payable.

1 APRIL – 31 DECEMBER 2014

The Group's operational net loan liability at the end of the reporting period amounted to MSEK 557 (757). Interest-bearing liabilities totalled MSEK 635 (815), excluding expensed pension obligations of MSEK 532 (401). Liabilities to credit institutions amounted to MSEK 560 (760), net. Combined cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 644 (530).

The equity/assets ratio at the end of the reporting period was 46 percent, compared with 43 percent at the beginning of the financial year.

Equity per share totalled SEK 82.35 at the end of the reporting period, compared with SEK 78.40 at the beginning of the financial year. Equity per share after dilution totalled SEK 82.20 at the end of the reporting period, compared with SEK 78.40 at the beginning of the financial year.

EMPLOYEES

At the end of the reporting period, the number of employees in the Group was 2,678, compared with 2,655 at the beginning of the financial year.

SHARE STRUCTURE AND REPURCHASE OF OWN SHARES

At the end of the reporting period, share capital totalled MSEK 56.9. The distribution by class of share is as follows:

SHARE STRUCTURE

CLASS OF SHARE	AS OF 31 DECEMBER 2014
Class A shares	1,065,124
Class B shares	27,371,292
Total number of shares before repurchasing	28,436,416
Less: Repurchased Class B shares	–340,000
Total number of shares after repurchasing	28,096,416

As of 31 March 2014, the number of Class B shares held in treasury totalled 340,000. During the reporting period, there were no changes to the holding of treasury shares. Accordingly, the number of Class B shares held in treasury as of 31 December 2014 amounted to 340,000, corresponding to 1.2 percent of the total number of shares and 0.9 percent of the total number of votes. Of the total number of shares held in treasury, 338,000 are reserved to cover the Company's obligations in the two call option programmes issued to senior management in the Group in September 2013 and September 2014, respectively.

Following a resolution passed by the Annual General Meeting in August 2014, 13 senior executives were offered an opportunity to acquire a maximum of 169,000 call options on repurchased Class B shares. The programme was fully subscribed. When fully exercised, the number of Class B shares outstanding will increase by 169,000, corresponding to 0.6 percent of the total number of shares and 0.4 percent of the votes. The call options have been conveyed at a price of SEK 14.30 per call option, equivalent to the market value of the options according to an external valuation performed by Nordea Bank. The redemption price for the call options issued in connection with the share-based incentive programme for 2014 is SEK 176.50 and the redemption period is from 11 September 2017 until 8 June 2018, inclusive. Call options issued under this programme has not resulted in any dilution effect as of 31 December 2014.

The redemption price for the call options issued in connection with the share-based incentive programme for 2013 is SEK 101.90 and the redemption period is from 12 September 2016 until 9 June 2017, inclusive.

At 31 December 2014, the share price was SEK 152.50. For more information about the dilution effect of call options issued, refer to page 10.

There have been no changes in the holding of treasury shares after the end of the reporting period.

TRANSACTIONS WITH RELATED PARTIES

No transactions having a material impact on the Group's position or earnings occurred between B&B TOOLS and its related parties during the reporting period.

RISKS AND UNCERTAINTIES

During the reporting period, no significant changes occurred with respect to risks and uncertainties, for either the Group or the Parent Company. For information about the Group's risks and uncertainties, refer to page 29 of B&B TOOLS' Annual Report for 2013/2014.

1 APRIL – 31 DECEMBER 2014

ACCOUNTING POLICIES

The Interim Report for the Group was prepared in accordance with IFRS and by applying IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Market Act. The Interim Report for the Parent Company was prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which conforms to the provisions detailed in RFR 2 Accounting for Legal Entities.

The same accounting policies and bases of judgement as in the Annual Report for 2013/2014 have been applied.

EVENTS AFTER THE END OF THE REPORTING PERIOD

No significant events affecting the Group have occurred after the end of the reporting period.

ELECTION COMMITTEE FOR THE ELECTION OF THE BOARD OF DIRECTORS

In accordance with a resolution passed at the Annual General Meeting held in August 2014, the largest shareholders in terms of votes as of 31 December 2014 have been contacted and asked to appoint four members who, together with the Chairman of the Board, will form the Election Committee for the upcoming election of the Board of Directors. The Election Committee thus comprises Board Chairman Anders Börjesson, Tom Hedelius, Conny Karlsson (representative of CapMan Public Market Investment), Marianne Nilsson (representative of Swedbank Robur funds) and Per Trygg (representative of SEB Funds). Information regarding how to contact the Election Committee is available on B&B TOOLS' website.

Stockholm, 10 February 2015

Ulf Lilius President & Chief Executive Officer

This report has not been subject to special review by the Company's auditors.

Contact information

Ulf Lilius, President & CEO, Tel: +46 10 454 77 00 Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32

Comprehensive contact information for B&B TOOLS and forthcoming information dates are presented on page 12.

This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.

REPORTING BY OPERATING SEGMENT

REVENUE BY OPERATING SEGMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
	OCT-DEC		APR-DEC		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
TOOLS / Momentum	1,332	1,315	3,839	3,821	5,116	5,098
Business Areas	1,008	980	2,997	2,850	4,018	3,871
Group-wide	153	167	473	498	637	662
Eliminations	–466	–508	–1,400	–1,481	–1,902	–1,983
The B&B TOOLS Group	2,027	1,954	5,909	5,688	7,869	7,648

REVENUE BY QUARTER			2013/2014
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1
TOOLS / Momentum	1,332	1,194	1,313	1,277	1,315	1,172	1,334
Business Areas	1,008	960	1,029	1,021	980	903	967
Group-wide	153	154	166	164	167	163	168
Eliminations	–466	–457	–477	–502	–508	–469	–504
The B&B TOOLS Group	2,027	1,851	2,031	1,960	1,954	1,769	1,965

OPERATING PROFIT BY OPERATING SEGMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
	OCT-DEC		APR-DEC		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
TOOLS / Momentum	41	40	146	109	182	145
Business Areas	59	53	213	145	291	223
Group-wide	0	–4	–18	–5	–27	–14
Eliminations	4	–4	–2	–12	–4	–14
The B&B TOOLS Group	104	85	339	237	442	340

OPERATING PROFIT BY QUARTER			2014/2015				2013/2014
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1
TOOLS / Momentum	41	58	47	36	40	36	33
Business Areas	59	80	74	78	53	51	41
Group-wide	0	–5	–13	–9	–4	5	–6
Eliminations	4	–3	–3	–2	–4	–5	–3
The B&B TOOLS Group	104	130	105	103	85	87	65

GROUP SUMMARY

INCOME STATEMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
	OCT-DEC		APR-DEC		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Revenue	2,027	1,954	5,909	5,688	7,869	7,648
Shares in profit of associated companies	0	0	0	0	0	0
Other operating income	6	1	23	3	35	15
Total operating revenue	2,033	1,955	5,932	5,691	7,904	7,663
Goods for resale	–1,204	–1,160	–3,482	–3,378	–4,649	–4,545
Personnel costs	–432	–419	–1,253	–1,214	–1,672	–1,633
Depreciation, amortisation, impairment losses and
reversal of impairment losses	–7	–10	–21	–32	–34	–45
Other operating expenses	–286	–281	–837	–830	–1,107	–1,100
Total operating expenses	–1,929	–1,870	–5,593	–5,454	–7,462	–7,323
Operating profit	104	85	339	237	442	340
Financial income and expenses	–8	–11	–31	–41	–44	–54
Profit after net financial items	96	74	308	196	398	286
Taxes	–24	–19	–77	–51	–98	–72
Net profit for the period	72	55	231	145	300	214
Of which, attributable to:
Parent Company shareholders	72	55	231	145	300	214
Earnings per share, SEK – Before dilution	2.55	1.95	8.20	5.15	10.70	7.60

STATEMENT OF COMPREHENSIVE INCOME

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
MSEK	OCT-DEC 2014	2013	APR-DEC 2014	2013	ROLLING 12 MOS.	2013/ 2014
Net profit for the period	72	55	231	145	300	214
OTHER COMPREHENSIVE INCOME FOR THE PERIOD
Components that will not be reclassified to net profit for the year
Remeasurement of defined-benefit pension plans	–20	–3	–76	62	–132	6
Tax attributable to components that will not be reclassified	5	1	17	–13	29	–1
	–15	–2	–59	49	–103	5
Components that will be reclassified to net profit for the year
Translation differences	–12	3	22	–6	30	2
Effects of hedge accounting	16	–2	17	–1	18	0
Tax attributable to components that may be reclassified	–4	1	–4	0	–5	–1
	0	2	35	–7	43	1
Other comprehensive income for the period	–15	0	–24	42	–60	6
Comprehensive income for the period	57	55	207	187	240	220
Of which, attributable to: Parent Company shareholders	57	55	207	187	240	220

1 APRIL – 31 DECEMBER 2014

BALANCE SHEET

MSEK	31 DEC 2014	31 DEC 2013	31 MAR 2014
ASSETS
Intangible non-current assets	1,805	1,793	1,792
Tangible non-current assets	129	232	208
Financial non-current assets, pension funds	2	3	2
Financial non-current assets, other interest-bearing	3	3	3
Shares in associated companies	11	11	11
Deferred tax assets	117	107	102
Inventories	1,558	1,395	1,414
Accounts receivable	1,085	1,043	1,299
Other current receivables	276	264	210
Cash and cash equivalents	75	55	53
Total assets	5,061	4,906	5,094
EQUITY AND LIABILITIES
Equity	2,314	2,170	2,203
Non-current interest-bearing liabilities	365	434	400
Pension provisions	532	401	451
Other non-current liabilities and provisions	83	106	82
Current interest-bearing liabilities	270	381	475
Accounts payable	812	742	885
Other current liabilities	685	672	598
Total equity and liabilities	5,061	4,906	5,094
Specifications
Inventories plus accounts receivable less accounts payable	1,831	1,696	1,828
Other working capital items, net	–409	–408	–388
Working capital	1,422	1,288	1,440
Operational net loan liability *	557	757	819

* Interest-bearing current and non-current liabilities, excluding net pension provisions, less cash and cash equivalents and interest-bearing receivables.

STATEMENT OF CHANGES IN EQUITY

MSEK	31 DEC 2014	31 DEC 2013	31 MAR 2014
Opening equity	2,203	2,065	2,065
Dividend, Parent Company shareholders	–98	–84	–84
Sale of call options	2	2	2
Comprehensive income for the period attributable to:
Parent Company shareholders	207	187	220
Closing equity	2,314	2,170	2,203

CASH-FLOW STATEMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
		OCT-DEC		APR-DEC	ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Operating activities before changes in working capital	75	56	296	155	311	170
Changes in working capital	132	99	11	127	–76	40
Cash flow from operating activities	207	155	307	282	235	210
Acquisition of intangible and tangible non-current assets	–14	–19	–38	–39	–47	–48
Sales of intangible and tangible non-current assets	1	0	1	1	1	1
Acquisition of subsidiaries and other business units	–4	–	–4	–	–4	–
Sales of subsidiaries and other business units	14	18	93	18	117	42
Cash flow before financing	204	154	359	262	302	205
Financing activities	–191	–179	–345	–422	–290	–367
Cash flow for the period	13	–25	14	–160	12	–162
Cash and cash equivalents at the beginning of the
period	58	79	53	214	55	214
Exchange-rate differences in cash & cash equivalents	4	1	8	1	8	1
Cash and cash equivalents at the end of the period	75	55	75	55	75	53

B&B TOOLS measures financial instruments at fair value or cost in the balance sheet depending on their classification. In addition to items in the financial net debt, financial instruments also include accounts receivable and accounts payable. According to IFRS 7, financial instruments measured at fair value in the balance sheet are included in level 2 of the fair value hierarchy. The carrying amounts for financial assets and liabilities correspond to fair value in all material respects.

OPERATING SEGMENTS

	EXTERNAL REVENUE APR-DEC		REVENUE FROM INTERNAL CUSTOMERS APR-DEC		TOTAL REVENUE APR-DEC		OPERATING PROFIT APR-DEC
MSEK	2014	2013	2014	2013	2014	2013	2014	2013
TOOLS / Momentum	3,834	3,782	5	39	3,839	3,821	146	109
Business Areas	2,064	1,899	933	951	2,997	2,850	213	145
Total operating segment	5,898	5,681	938	990	6,836	6,671	359	254
Group-wide	11	7	462	491	473	498	–18	–5
Eliminations	–	–	–1,400	–1,481	–1,400	–1,481	–2	–12
The B&B TOOLS Group	5,909	5,688	0	0	5,909	5,688	339	237

The Group's operating segments comprise TOOLS / Momentum (with four operating areas) and the Group's Business Areas (with five operating areas). The operating segments are consolidations of the operational organisation, as used by Group management and the Board of Directors to monitor operations.

TOOLS / Momentum comprises the Group's reseller operations in Sweden, Norway and Finland (which operate within the framework of TOOLS) and Momentum, which together form the Group's market channels for industrial consumables and industrial components for Nordic industry. The Group's Business Areas conduct operations in various product and application areas (tools & machinery, personal protective equipment, fastening elements, work environment and consumables) and provide TOOLS and other market channels with industrial consumables and related services. Group-wide includes the Group's management, accounting, support functions, infrastructure operations and property management. The support functions include HR, internal communications, IR and legal affairs. The infrastructure operations comprise IT & Supply Chain. Intra-Group pricing between the operating segments occurs on market terms. There are no assets in the operating segments that are affected by material changes compared with the most recent Annual Report. The accounting policies are the same as those applied in the consolidated financial statements.

KEY PER-SHARE DATA1

	QUARTER (3 MOS.) REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
		OCT-DEC	APR-DEC		ROLLING	2013/
SEK	2014	2013	2014	2013	12 MOS.	2014
Earnings before dilution	2.55	1.95	8.20	5.15	10.70	7.60
Earnings after dilution	2.55	1.95	8.20	5.15	10.65	7.60
Equity, at the end of the period			82.35	77.25		78.40
Equity after dilution, at the end of the period			82.20	77.25		78.40
NUMBER OF SHARES OUTSTANDING IN THOUSANDS
Number of shares outstanding before dilution	28,096	28,096	28,096	28,096	28,096	28,096
Weighted number of shares outstanding before dilution	28,096	28,096	28,096	28,096	28,096	28,096
Weighted number of shares outstanding after dilution	28,148	28,096	28,144	28,096	28,140	28,096

¹ Dilution effect based on issued and outstanding call options on repurchased Class B shares as of 31 December 2014.

3 months	0.2%	9 months	0.2%	Rolling 12 months	0.2%	2013/2014	0.0%	Page 10 (12)
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PARENT COMPANY SUMMARY

INCOME STATEMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (9 MOS.)		FULL-YEAR (12 MOS.)
	OCT-DEC		APR-DEC		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Revenue	7	9	22	28	29	35
Other operating income	0	–	0	–	0	0
Total operating revenue	7	9	22	28	29	35
Operating expenses	–12	–5	–34	–27	–44	–37
Operating profit	–5	4	–12	1	–15	–2
Financial income and expenses	20	29	229	465	252	488
Profit after net financial items	15	33	217	466	237	486
Appropriations	–	–	–	–	36	36
Profit before taxes	15	33	217	466	273	522
Taxes	–4	–7	–10	–17	–23	–30
Net profit for the period	11	26	207	449	250	492

STATEMENT OF COMPREHENSIVE INCOME

	QUARTER (3 MOS.) REPORTING PERIOD (9 MOS.)			FULL-YEAR (12 MOS.)
		OCT-DEC	APR-DEC		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Net profit for the period	11	26	207	449	250	492
OTHER COMPREHENSIVE INCOME FOR THE PERIOD
Effects of hedge accounting	16	–2	17	1	17	1
Taxes attributable to other comprehensive income	–3	0	–3	–1	–3	–1
Other comprehensive income for the period	13	–2	14	0	14	0
Comprehensive income for the period	24	24	221	449	264	492

BALANCE SHEET

MSEK	31 DEC 2014	31 DEC 2013	31 MAR 2014
ASSETS
Intangible non-current assets	–	0	0
Tangible non-current assets	1	2	2
Financial non-current assets	3,718	3,920	3,856
Current receivables	96	16	267
Cash and cash equivalents	0	–	–
Total assets	3,815	3,938	4,125
EQUITY, PROVISIONS AND LIABILITIES
Equity	1,796	1,628	1,671
Untaxed reserves	192	201	192
Provisions	47	48	48
Non-current liabilities	456	633	600
Current liabilities	1,324	1,428	1,614
Total equity, provisions and liabilities	3,815	3,938	4,125

COMPILATION OF KEY FINANCIAL RATIOS

KEY FINANCIAL RATIOS

	12 MONTHS ENDING
	31 DEC 2014	31 MAR 2014	31 MAR 2013	31 MAR 2012
Revenue, MSEK	7,869	7,648	7,666	8,201
Operating profit, MSEK	442	340	289	409
Profit after net financial items, MSEK	398	286	216	318
Profit for the period, MSEK	300	214	222	227
Operating margin	5.6%	4.4%	3.8%	5.0%
Profit margin	5.1%	3.7%	2.8%	3.9%
Return on capital employed	13%	10%	8%	11%
Return on equity	13%	10%	11%	12%
P/WC (Operating profit/Working capital*)	25%	20%	15%	21%
Operational net loan liability (closing balance), MSEK	557	819	914	1,414
Equity (closing balance), MSEK	2,314	2,203	2,065	1,950
Equity/assets ratio	46%	43%	39%	35%
Operational net debt/equity ratio	0.24	0.37	0.44	0.73
Number of employees at the end of the period	2,678	2,655	2,780	2,880

* Working capital = Inventories + Accounts Receivable – Accounts Payable.

KEY PER-SHARE DATA

	12 MONTHS ENDING
	31 DEC 2014	31 MAR 2014	31 MAR 2013	31 MAR 2012
Earnings, SEK	10.70	7.60	7.90	8.10
Earnings after dilution, SEK	10.65	7.60	7.90	8.10
Cash flow, SEK	8.35	7.45	9.30	4.05
Equity, SEK	82.35	78.40	73.50	69.40
Share price, SEK	152.50	119.00	85.00	59.25

Dates for forthcoming financial information

The Financial Report for 1 April 2014 – 31 March 2015 will be presented on 12 May 2015.

The Annual Report for the 2014/2015 financial year will be distributed to shareholders who so have requested in mid-July 2015 and will be available at the Company's office and website as of the same date.

B&B TOOLS AB's 2015 Annual General Meeting will be held in Stockholm on 20 August 2015.

Visit www.bbtools.com to order reports and press releases.

The information in this report is such that it shall be disclosed by B&B TOOLS in accordance with the Swedish Securities Market Act, the Swedish Financial Instruments Trading Act or requirements imposed in the Rulebook for Issuers on Nasdaq Stockholm. The information was submitted for publication on 10 February 2015 at 11:20 a.m.

B&B TOOLS AB (publ)

Mail address PO Box 10024 SE-100 55 Stockholm Sweden Visit Linnégatan 18 Stockholm Tel +46 10 454 77 00 Fax +46 10 454 77 01 Org No 556034-8590 Reg office Stockholm Web www.bbtools.com