Byggmax Group

Earnings Release • Jul 15, 2014

In the second quarter, Byggmax increased net sales by 16.5 percent and EBIT increased by SEK 25.2 M

April 1 - June 30

• Net sales amounted to SEK 1,136.7 M (976.0) up 16.5 percent
• Net sales for comparable stores rose 8.3 percent (declined 2.5)
• The gross margin was 28.9 percent (29.4)
• EBIT amounted to SEK 95.1 M (69.9)
• EBIT margin was 8.4 percent (7.2)
• Profit after tax amounted to SEK 71.4 M (50.5)
• Earnings per share totaled SEK 1.2 (0.8)

Significant events during April-June

• Three (five) new stores were opened: Two in Sweden and one in Norway.
• A total of four stores were converted to the Byggmax 2.0 con cept during the quarter.
• During the quarter, Byggmax signed a new three-year financing agreement with 30-percent lower interest expenses on a full year basis.
• During the quarter, Karin Hyllgren Jonsson was elected as a new Board member of Byggmax Group AB (publ) and Johannes Lien declined reelection.

January 1 - June 30

• Net sales amounted to SEK 1,623.7 M (1,407.9) up 15.3 percent
• Net sales for comparable stores rose 8.1 percent (declined 4.6)
• The gross margin was 30.0 percent (29.5) excluding non-recur ring items and 30.5 percent including non-recurring items
• EBIT amounted to SEK 75.1 M (42.5) excluding non-recurring items and SEK 83.9 M including non-recurring items
• EBIT margin was 5.2 percent (3.0)
• Profit after tax excluding non-recurring items amounted to SEK 50.6 M (27.3) and 57.4 including non-recurring items
• Earnings per share totaled SEK 0.9 (0.4)

Significant events during Januari-June

• Five (six) new stores were opened: Three in Sweden, one in Norway and one in Finland.
• A total of 16 stores were converted to the Byggmax 2.0 concept during the first two quarters.
• In March, Erik Börjesson assumed the position of IT Manager at Byggmax and became a new member of the Byggmax Group management.

Earnings overview	April-June		January-June		12 months	Full year
	2014	2013	2014	2013	Jul 1, 2013- Jun 30,2014	2013
Net sales, SEK M	1,136.7	976.0	1,623.7	1,407.9	3,432.1	3,216.4
Gross margin, percent	28.9	29.4	30.5	29.5	31.1	30.7
EBIT, SEK M	95.1	69.9	83.9	42.5	288.1	246.7
EBIT margin, percent	8.4	7.2	5.2	3.0	8.4	7.7
Profit after tax, SEK M	71.4	50.5	57.4	27.3	214.1	184.0
Earnings per share, SEK	1.2	0.8	0.9	0.4	3.5	3.0
Return on equity, percent	7.7	5.9	6.2	3.2	25.1	19.5
Cash flow from operating activities per share, SEK	6.6	4.4	7.3	5.3	5.2	3.2
Shareholders´equity per share,SEK	14.6	13.5	14.6	14.6	14.6	16.0
Numbers of stores at the end of the period	110	100	110	100	110	105
New stores opened during the period	3	5	5	6	10	11

President's comments on results

Total sales for the quarter increased 17 percent year-on-year. Sales from new and existing stores contributed to growth. The strongest month of the quarter was April. The spring was milder than in the preceding year, which had a positive impact on sales. At the same time, the weather was more adverse in May and June, which impacted negatively on those months.

The gross margin for the quarter was lower than in the year-earlier period. The effect is partly attributable to rising lumber prices, which were not entirely offset by higher consumer prices during the quarter. Furthermore, we experienced stronger price pressure in Norway.

Overheads increased during the quarter, mainly due to the rise in the number of stores.

Strategic business decisions

Three new stores were opened during the quarter. Byggmax plans to open seven stores in 2014. In the third quarter of 2014, two new stores will be opened and the Jönköping store will be relocated.

Byggmax upgrades store concept and increases store product range – Byggmax 2.0

Byggmax 2.0 is an updated store concept, with more articles and clearer communication, utilizing the same sales area and with improved sales control. Byggmax 2.0 stores continue to deliver promising sales increases and stronger gross margins following conversion. Four stores were converted during the quarter. During the autumn of 2014 we will convert another 15 stores. For the spring 2015, the plan is to convert an additional 20-30 stores.

Outlook

The Swedish and Norwegian markets are stronger than the Finnish market, but they have been affected by weather in the quarter. It is uncertain if the weakness in the later part of the quarter is due to only weather, or due to weather and underlying market. In the Finnish market, uncertainty continues regarding economic developments. Our continued capture of market shares in our categories confirms the strength of the Byggmax concept. With an extended network of stores, we are reaching increasing numbers of consumers in Sweden, Norway and Finland, and as a result of considerable cost awareness, we remain on the side of the customer, with an attractive range at very low prices.

Magnus Agervald President, Byggmax Group AB (publ)

BYGGmax in brief

Business concept

Byggmax's business concept is to sell high-quality building supplies at the lowest price possible.

Business model and key factors for success

Byggmax offers affordable high-quality products for the most common maintenance and DIY projects. Since the start in 1993, the organization has been characterized by the so called "Byggmax concept" which has been decisive for the company's development. The concept is built on a limited product range, a resource efficient administration, strong company culture and competitive and effective pricing strategy as well as the stores distinguished shape and design.

Goals

Byggmax has determined it's long term goals for the Group as follows:

• organic growth to exceed 15 percent per year in net sales through expansion of the chain of stores and increased sales in comparable stores
• attain an EBIT margin in relation to net sales that exceeds 11 percent

Strategies

Byggmax's strategy for achieving its financial goals is to expand the chain of stores in existing markets, to improve operating activities and to maintain continuous focus on business development.

Byggmax organization

Byggmax has a resource-efficient organization with the majority of business activities managed centrally. Aside from the sales force, which is based in Byggmax stores, most business processes, including Byggmax's online sales, are managed function-wide across all stores by the head office in Solna, near Stockholm. Thus, there are no local offices – a feature that contributes to the efficiency and economies of scale that characterize the Byggmax concept.

The image above shows the number of stores that have the 2.0 concept and their proportion of the total number of stores.

105

110

Interim report January - June 2014 Byggmax Group AB (publ) Interim report January - June 2014 Byggmax Group AB (publ) 2

Consolidated sales and earnings

April 1 - June 30

Revenues

The operation's net sales totaled SEK 1,136.7 M (976.0), up 16.5 percent. Operating revenue was SEK 1,138.9 M (977.9), up 16.5 percent. Net sales for comparable stores1 rose 8.3 percent in local currency. Net sales amounted to SEK 835.6 (723.2) in Sweden and SEK 301.1 M (252.9) in the other Nordic markets. The strongest sales month of the quarter was April. The milder weather compared with the year-earlier period had a positive effect on sales, while at the same time, the weather was more adverse in May and June, which weakened sales for those months.

The sales increase of 16.5 percent was divided according to the following:
Comparable stores, local currency, percent	8.3
Non-comparable units, percent	8.4
Exchange-rate effects, percent	-0.2
Total, percent	16.5

The Group opened three (five) new stores during the quarter. Accordingly, the total number of stores in the Group at June 30, 2014 was 110 (100).

EBIT

EBIT amounted to SEK 95.1 M (69.9) M, corresponding to an EBIT margin of 8.4 percent (7.2). The gross margin was 28.9 percent, compared with 29.4 percent in the year-earlier period. The lower gross margin for the quarter is partly attributable to lumber prices rising in the spring, which was not entirely offset by higher consumer prices, and that we experienced stronger price pressure in Norway.

Personnel costs and other external expenses rose a total of SEK 14.6 M. The increase in expenses compared with the year-earlier period was mainly attributable to costs associated with new stores opened after the second quarter of 2013, amounting to SEK 17.7 M.

Profit before tax

Profit before tax amounted to SEK 92.9 M (66.4). Net financial items amounted to an expense of SEK 2.2 M (expense: 3.5). Net financial items improved compared with the same period last year, primarily due to lower interest expense as a result of the new financing agreement and a stronger cash flow during the quarter.

Taxes

Tax expense for the second quarter of 2014 totaled SEK 21.5 M (15.8).

Consolidated sales and earnings

January 1 - June 30

Revenues

The operation's net sales totaled SEK 1,623.7 M (1,407.9), up 15.3 percent. Operating revenue was SEK 1,627.3 M (1,411.3), up 15.3 percent. Net sales for comparable stores1 rose 8.1 percent in local currency. Net sales amounted to SEK 1,204.4 (1,049.5) in Sweden and SEK 419.3 M (358.4) in the other Nordic markets. The milder weather compared with the year-earlier period had a positive effect on sales, while at the same time, the weather was more adverse in May and June, which weakened sales for those months.

The sales increase of 15.3 percent was divided according to the following:
Comparable stores, local currency, percent	8.1
Non-comparable units, percent	7.9
Exchange-rate effects, percent	-0.6
Total, percent	15.3

The Group opened five (six) new stores during the first two quarters. Accordingly, the total number of stores in the Group at June 30, 2014 was 110 (100).

EBIT

EBIT amounted to SEK 83.9 M (42.5) M, corresponding to an EBIT margin of 5.2 percent (3.0). The gross margin was 30.5 percent, compared with 29.5 percent in the year-earlier period. During the period, management renewed its assessment of the Group's obsolescence reserve, which gave rise to reversals of impairment losses on inventory amounting to SEK 8.7 M and resulted in a positive non-recurring effect in the first quarter of 2014, which in turn strengthened gross profit.

Personnel costs and other external expenses rose a total of SEK 33.3 M. The increase in expenses compared with the year-earlier period was mainly attributable to costs associated with new stores opened after the second quarter of 2013, amounting to SEK 34.4 M. The mild winter had a positive impact on electricity and snow removal costs, which resulted in a SEK 2.7 M reduction in expenses compared with the corresponding period in the preceding year. Investments related to the conversion to Byggmax 2.0 will be capitalized as of January 1, 2014, in accordance with the information previously provided.

Profit before tax

Profit before tax amounted to SEK 74.7 M (35.9). Net financial items amounted to an expense of SEK 9.2 M (expense: 6.6). Net financial items were impacted by exchange-rate differences.

Taxes

Tax expense for the first half of 2014 totaled SEK 17.2 M (8.6).

¹A store is classified as comparable as of the second year-end after the store was opened. Stores that are relocated to new premises in existing locations are handled in the same manner.

Cash flow and financial position

Cash flow from operating activities for the period April to June amounted to SEK 399.8 M (266.3), up SEK 133.5 M year-on-year. At the end of the period, inventory totaled SEK 675.9 M (571.4), which was an increase of SEK 104.5 M compared with the year-earlier period. Compared with the end of the year-earlier period, ten new stores were added and associated inventory amounted to SEK 36.0 M. The higher inventory value is also attributable to better inventory levels in stores and that inventory was impacted by higher purchasing prices. Distribution inventory was SEK 12.4 M lower than in the year-earlier period. During the quarter, a dividend of SEK 139.7 M was paid.

At June 30, 2014, consolidated shareholders' equity amounted to SEK 889.2 M (818.3). The net debt of the Group was SEK 244.0 M (329.6), down SEK 85.6 M year-on-year. The equity/assets ratio amounted to 41.0 percent (39.7). Unutilized credits totaled SEK 209.8 M (187.7).

Investments during the second quarter amounted to SEK 31.3 M (48.0). Of these investments, SEK 12.3 M (24.9) pertained to investments in stores opened or stores to be opened during 2014 and SEK 2.4 M (4.5) to IT investments. Investments relating to the conversion of stores to the Byggmax 2.0 concept totaled SEK 7.2 M for the second quarter.Investments for the first half of 2014 totaled SEK 73.1 M (64.2). Of these investments, SEK 27.7 M (31.4) pertained to investments in stores opened or stores to be opened during 2014 and SEK 5.0 M (7.1) for IT investments. Investments relating to the conversion of stores to the Byggmax 2.0 concept totaled SEK 25.2 M for the first half of 2014. The Group amended the estimated useful life of certain investments made in stores as of January 1, 2014. As a result, approximately 70 percent of the investment in the conversion to Byggmax 2.0 has a depreciation period of five years and 30 percent has a depreciation period of ten years.

Swedish Customs decided to levy an additional charge on Byggmax with respect to customs and anti-dumping duties for 2010. In spring 2013, Swedish Customs reviewed the decision regarding customs and anti-dumping duties and reduced the overall amount by SEK 3.2 M. Following the review, the total amount is SEK 29.3 M. Byggmax has appealed parts of this decision. Byggmax has agreed on future compensation in a corresponding amount with the supplier that sold the products in question to Byggmax. Byggmax paid a total of SEK 23.2 M in customs and anti-dumping duties and the company's exposure to the supplier at June 30, 2014 amounted to SEK 21.1 M.

New store openings and acquisitions

During the period January to June 2014, five new stores were opened: Munkedal, Ullstämman (Linköping) and Värmdö in Sweden, Åsane (Bergen) in Norway and Pirkkala in Finland.

The following stores have been publicly announced and will be opened in 2014: Katrineholm in Sweden and Tönsberg in Norway. During the third quarter, the store in Jönköping in Sweden will be relocated.

The Byggmax workforce

The number of employees (converted to full-time equivalents) rose to 732 (662) at the end of the period.

Risks and uncertainties

A number of factors can impact Byggmax's earnings and operations. Most of these factors can be managed through internal procedures, while certain factors are largely governed by external circumstances. For a more detailed description of the Group's risks and risk management, refer to the Annual Report for 2012. Apart from the risks described in the Annual Report, no material risks arose during the period.

Seasonal fluctutations

The company´s operations are affected by strong seasonal variations controlled by consumer demand for basic building supplies. Due to the weather´s impact on demand, Byggmax's sales and cash flow are generally higher in the second and third quarters, when about two thirds of the company´s sales are generated, while these usually decline in the fourth and first quarters. Although seasonal variations do not normally affect Byggmax's earnings and cash flow from year to year, earnings and cash flow may be impacted during the year by unusually harsh or mild weather conditions, or by excessive or insufficient precipitation. Byggmax endeavors to balance the seasonal effects by launching new products that are not as susceptible to seasonal variations.

Parent Company

period.

The Parent Company comprises a holding company. The Parent Company's sales for the second quarter amounted to SEK 0,1 M (0.1) and SEK 0,2 M (0.2) for the first two quarters. Income after net financial items was negative in an amount of SEK -4,6 M (-4.0) for the second quarter and SEK -9.1 M (-8.4) for the first two quarters.

Events after the close of the reporting period No significant events have occurred since the end of the reporting

Ownership structure

Ownership	Number of shares	Holding (%)
Nordea investment Funds	5,825,618	9,59
Lannebo fonder	3,496,983	5,76
Handelsbanken Fonder AB	3,419,977	5,63
Norges Bank Investment Management	3,254,449	5,36
SEB Bank Investment Management	2,625,912	4,32
Schroder Investment Management North America, Inc.	2,400,000	3.95
Jarton Management (Göran Peterson)	2,381,296	3.92
Swedbank Robur fonder	2,150,184	3,54
Fjärde AP-fonden	1,802,796	2,97
Ulslane Holdings (Lars Lindberg)	1,715,000	2.82
Total of the ten major shareholders	29,072,215	47,86
Total other shareholders	31,664,830	52,14
Total at June 30, 2014	60,737,045	100.00

Value drivers

Byggmax's ability to create value through its business is impact ed in the long and short term by various external and internal factors. A selection of these are listed below.

Value drivers – short-term factors

• Trends in cost prices – cost prices impact Byggmax's margins. Historically, the market has passed on adjustments in cost prices to the end consumer.

• Competitors' pricing – Byggmax prices products based on the prices of the competition with the objective of always being the cheapest. Therefore, the pricing of competitors affects margins. • Short-term trends in the DIY market – Byggmax operates in the DIY market and, accordingly, its trends impact the company.

• Weather – Byggmax sells many items for outdoor u se and, accordingly, sales are impacted by the weather. Seasonal variations are clearly visible and the company has significantly higher turnover in spring, summer and early autumn.

• Availability of attractive store locations – The establishment of new stores is a key element of Byggmax's strategy in both the long and the short-term, thus making attractive store locations of key importance.

Value drivers – long-term factors

• The ability to maintain the strong corporate culture – The Byggmax culture plays a key role in the company's success and its

retention is a key factor for continued success.

• The ability to execute the Group's strategy and business concept – Maintaining stringency levels in the product range and pricing as well as continuing to trim the organization through continuous improvements comprise a few of the key elements for success.

• The ability to renew the concept and strategies when needed – The Byggmax concept has remained much the same since it was founded in 1993. However, the concept has developed over time and new ideas have been tested and incorporated or discarded. • Long-term development of the DIY market – Byggmax operates in the DIY market and its long-term trend is important.

• Trends in the attractiveness of the low-price segment in the DIY market – Byggmax's strategy is to become the largest operator in the low-price segment in the Nordic region. Long-term trends are therefore important.

• The competition's strategies and their execution – Byggmax operates in a competitive market and the actions of the competition affect the Group.

Accounting policies

Byggmax Group AB (publ) applies International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplementary Accounting Rules for Groups.

The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. The same accounting policies were applied for the Parent Company as for the Group, except in the cases stated under Parent Company accounting policies in Note 2.16 of the Annual Report for 2013.

Amended estimated useful life of certain tangible assets The company has reviewed the useful life of the fixed assets of its stores and deemed certain fixed assets to have a useful life of ten years. The previous estimated useful life for these types of fixed assets was five years. This new ten-year depreciation method applies to investments made from January 1, 2014.

For a more detailed description of the accounting policies applied for the Group and the Parent Company in this interim report, refer to Notes 1-4 of the Annual Report for the 2013 fiscal year.

All of the figures listed above and below in parentheses refer to the corresponding period or date in the preceding year.

This report has not been audited

Financial calender

Third quarter interim 2014 October 20, 2014

The Board of Directors and the President certify that the six-month report provides an accurate overview of the Group's and Parent Company's operations, position and performance, as well as describing significant risks and instability factors faced by the Parent Company and companies in the Group.

Stockholm, July 14, 2014
Fredrik Cappelen	Anders Moberg	Karin Hygrell Jonsson
Chairman of the Board	Board member	Board member
Lottie Svedenstedt	Stefan Linder	Stig Notlöv
Board member	Board member	Board member

Magnus Agervald President

Consolidated summary of comprehensive income

Amount in SEK M	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	12 months	Jan - Dec
					July 1, 2013 -
Note	2014	2013	2014	2013	June 30, 2014	2013
Operating income
Net Sales 1	1,136.7	976.0	1,623.7	1,407.9	3,432.1	3,216.4
Other operating income	2.2	1.8	3.6	3.4	6.9	6.6
Total operating income	1,138.9	977.9	1,627.3	1,411.3	3,439.0	3,223.0
Operating expenses
Goods for sale	-807.9	-689.5	-1,128.6	-992.0	-2,364.2	-2,227.6
Other external costs and operating expenses	-128.7	-124.5	-218.3	-205.1	-395.4	-382.2
Personnel costs	-89.9	-79.5	-163.9	-143.8	-329.1	-309.1
Depreciation, amortization of tangible and intangible fixed assets	-17.3	-14.5	-32.6	-27.9	-62.2	-57.4
Total operating expenses	-1,043.7	-908.0	-1,543.4	-1,368.8	-3,150.9	-2,976.3
EBIT	95.1	69.9	83.9	42.5	288.1	246.7
Profit/Loss from financial items	-2.2	-3.5	-9.2	-6.6	-11.4	-8.7
Profit before tax	92.9	66.4	74.7	35.9	276.7	237.9
Income tax	-21.5	-15.8	-17.2	-8.6	-62.6	-53.9
Profit/loss for the period	71.4	50.5	57.4	27.3	214.1	184.0
Other comprehensive income for the period
Items that will not be reversed in profit or loss	0.0	0.0	0.0	0.0	0.0	0.0
Items that can later be reversed in profit or loss	0.0	0.0	0.0	0.0	0.0	0.0
Translation differences	0.6	1.6	1.5	-1.7	-3.5	-6.7
Other comprehensive income for the period	0.6	1.6	1.5	-1.7	-3.5	-6.7
Total comprehensive income for the period	72.0	52.1	58.9	25.6	210.6	177.3
Earnings per share before dilution, SEK	1.2	0.8	0.9	0.4	3.5	3.0
Earnings per share after dilution, SEK	1.2	0.8	0.9	0.4	3.5	3.0
Average number of shares, (thousands)	60,737	60,737	60,737	60,737	60,737	60,737
Number of shares at the end of the period, (thousands)	60,737	60,737	60,737	60,737	60,737	60,737

Consolidated summary of statement of financial position

Amounts in SEK M Note	June 2014	June 2013	Dec 2013
ASSETS
Fixed assets
Intangible fixed assets	1,081.2	1,081.6	1,081.4
Tangible fixed assets	235.3	205.7	194.0
Financial fixed assets	23.6	24.3	24.2
Total fixed assets	1,340.1	1,311.5	1,299.6
Current assets
Inventories	675.9	571.4	538.3
Derivatives	1.0	0.4	0.8
Current receivables	99.1	95.5	73.0
Cash and cash equivalents	52.6	81.2	33.1
Total current assets	828.6	748.5	645.2
TOTAL ASSETS	2,168.7	2,060.0	1,944.8
Amounts in SEK M Note	June 2014	June 2013	Dec 2013
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	889.2	818.3	970.0
LIABILITIES
Borrowing from credit institutions	3.5	9.8	5.8
Deferred tax liabilities	78.5	65.5	78.4
Long-term liabilities	82.0	75.3	84.1
Borrowing from credit institutions	293.1	400.9	504.3
Accounts payable	772.6	630.5	284.7
Current tax liabilities	0.0	0.0	0.0
Derivatives	0.0	0.0	0.0
Other liabilities	35.2	41.0	24.9
Accrued expenses and prepaid income	96.6	94.0	76.7
Current liabilities	1,197.5	1,166.4	890.7
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	2,168.7	2,060.0	1,944.8
Pledged assets - Shares in subsidiaries	1,166.2	1,055.0	1,100.2
Pledged assets - Chattel mortgages	120.0	120.0	120.0
Pledged assets - Blocked funds	8.5	8.5	8.4
Contingent liabilities	None	None	None

Consolidated statement of changes in shareholders' equity

Amounts in SEK M	Note	June 2014	June 2013	Dec 2013
Opening balance at the beginning of the period		970.0	914.2	914.2
COMPREHENSIVE INCOME
Translation differences		1.5	-1.7	-6.7
Profit for the period		57.4	27.3	184.0
Total comprehensive income		58.9	25.6	177.3
TRANSACTIONS WITH SHAREHOLDERS
Dividend to shareholders		-139.7	-121.5	-121.5
New share issue/share premium reserve		0.0	0.0	0.0
Total transactions with shareholders		-139.7	-121.5	-121.5
Shareholders' equity at the end of the period		889.2	818.3	970.0

Consolidated cash flow statement

Amounts in SEK M	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	12 months Jan - Dec
					July 1, 2013 -
	2014	2013	2014	2013	June 30, 2014	2013
Cash flow from operating activities
EBIT	95.1	69.9	83.9	42.5	288.1	246.7
Non-cash items
- Depreciation/amortization of tangible and intangible fixed assets	17.3	14.5	32.6	27.9	62.2	57.4
- Other non-cash items	0.2	1.5	0.6	0.2	-2.3	-2.7
Interest received	0.8	2.8	2.7	3.4	9.6	10.3
Interest paid	-6.6	-4.8	-12.0	-9.9	-21.8	-19.7
Tax paid	-21.1	-16.2	-17.2	-12.2	-50.1	-45.1
Cash flow from operating activities before changes in working capital	85.7	67.6	90.5	51.9	285.6	246.9
Changes in working capital
Increase/decrease in inventories and work in process	-50.1	-93.0	-142.6	-106.4	-108.7	-72.5
Increase/decrease in other current receivables	-13.2	-12.4	-20.4	-19.3	0.2	1.3
Increase/decrease in other current liabilities	377.5	304.0	518.0	395.8	139.0	16.7
Cash flow from operating activities	399.8	266.3	445.5	321.9	316.1	192.5
Cash flow from investing activities
Investment in intangible fixed assets	-2.4	-4.8	-5.1	-7.5	-9.9	-12.3
Investment in tangible fixed assets	-28.8	-43.2	-67.9	-56.7	-93.5	-82.3
Divestment of tangible fixed assets	-0.1	0.0	-0.1	0.0	-0.1	0.0
Investment in other financial fixed assets	0.0	1.2	-0.1	1.8	0.0	1.9
Investment in subsidiaries	0.0	0.0	0.0	0.0	0.0	0.0
Proceeds from sale of subsidiaries	0.0	0.0	0.0	0.0	10.7	10.7
Cash flow from investing activities	-31.4	-46.9	-73.2	-62.5	-92.9	-82.1
Cash flow from financing activities
Change in overdraft facilities	-66.6	-59.2	-59.1	-77.7	49.9	31.4
Dividend to shareholders	-139.7	-121.5	-139.7	-121.5	-139.7	-121.5
Amortization of loans	-150.0	-5.4	-154.0	-11.2	-161.9	-19.1
Cash flow from financing activities	-356.3	-186.1	-352.9	-210.4	-251.8	-109.2
Cash flow for the period	12.2	33.3	19.4	49.1	-28.5	1.1
Cash and cash equivalents at the beginning of the period1	31.9	39.4	24.7	23.6	72.7	23.6
Cash and cash equivalents at the end of the period1	44.1	72.7	44.1	72.7	44.1	24.7

¹ Note that cash and cash equivalents in the cash flow are adjusted for restricted bank funds SEK 8,5 M

Parent Company income statement

Amounts in SEK M	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	12 months	Jan - Dec
Note	2014	2013	2014	2013	July 1, 2013 - June 30, 2014	2013
Operating income
Operating income	0.1	0.1	0.2	0.2	0.3	0.3
Total operating income	0.1	0.1	0.2	0.2	0.3	0.3
Operating expenses
Other external expenses	-1.9	-1.1	-2.9	-2.0	-4.6	-3.6
Personnel costs	-0.5	-0.1	-0.6	-0.2	-1.2	-0.8
Total operating expenses	-2.4	-1.2	-3.6	-2.2	-5.8	-4.4
EBIT	-2.4	-1.2	-3.4	2.0	-5.5	-4.1
Profit from financial items	-2.2	-2.8	-5.7	-6.4	104.8	104.1
Profit/loss before tax	-4.6	-4.0	-9.1	-8.4	-100.7	100.0
Tax on profit/loss	1.0	0.9	2.0	1.9	0.1	0.0
Profit for the period	-3.6	-3.1	-7.1	-6.6	-100.5	100.0

The profit for the period corresponds with the comprehensive income for the period. The comprehensive income for the period corresponds with the profit for the period.

Parent Company balance sheet

Amounts in SEK M	Note	June 2014	June 2013	Dec 2013
ASSETS
Fixed assets
Financial fixed assets		712.1	712.1	712.1
Total fixed assets		712.1	712.1	712.1
Current assets		4.9	4.8	116.6
Total current assets		4.9	4.8	116.6
TOTAL ASSETS		716.9	716.8	828.7
Amounts in SEK M	Note	June 2014	June 2013	Dec 2013
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity		81.1	121.3	227.9
Current liabilities		635.9	595.5	600.8
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		716.9	716.8	828.7
Pledge assets		358.0	358.0	358.0
Contingent liabilities		None	None	None

Notes to the interim report

Note 1 Segments

Amounts in SEK M	Apr-Jun	Apr-Jun Jan-Jun Jan-Jun		12 months	Jan - Dec
					July 1, 2013 -
Net sales	2014	2013	2014	2013	June 30, 2014	2013
Nordic region	1,136.7	976.0	1,623.7	1,407.9	3,432.1	3,216.4

The Group has only one identified operating segment, which is the Nordic segment.

Note 2 Disclosures about transactions with related parties

No transactions occurred between Byggmax and related parties that could significantly impact the Company's position and results.

The 2011 and 2013 annual general meetings resolved to introduce warrants programs for senior executives and other key staff at Byggmax. The warrants can be exercised in the final six months of their term. The warrants are priced at market value, which is based on a valuation made by an independent party. Each warrant entitles its holder to subscribe for one share in the company at the exercise prices shown in the table below. The participants of the warrants program have entered into a pre-emption agreement.

	2013	2011
Total number	600 000	565 000
Price	2,24	6,77
Exercise price	42,8	63,9
Term	4,5	3,5
Number of participants	27	20

Note 3 Income per quarter

	Q 1	Q 2	Q 3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
	2012	2012	2012	2012	2013	2013	2013	2013	2014	2014
Net Sales, SEK M	451.4	958.0	1,093.1	587.9	431.9	976.0	1,175.2	633.2	487.0	1,136.7
Gross margin, percent	29.3	28.7	30.6	32.4	29.9	29.4	31.2	32.6	34.1	28.9
EBIT, SEK M	-9.6	64.6	161.5	35.8	-27.4	69.9	170.0	34.2	-11.3	95.1
EBIT margin, percent	-2.1	6.7	14.8	6.1	-6.4	7.2	14.5	5.4	-2.3	8.4
Working capital, SEK M	74.5	-175.5	7.0	179.2	96.5	-98.5	5.6	224.9	184.3	-129.4
Return on equity, percent	-1.6	5.4	13.8	4.0	-2.6	5.9	14.8	2.7	-1.4	7.7
Cash flow from operating activities per share, SEK	1.7	5.0	-0.9	-2.2	0.9	4.4	0.6	-2.8	0.8	6.6
Shareholders' equity per share3 , SEK	13.7	12.6	14.4	15.1	14.6	13.5	15.6	16.0	15.8	14.6
Number of stores	88	92	94	94	95	100	105	105	107	110

Note 4 Fair value disclosures pertaining to financial instruments

The fair value of financial liabilities and assets is estimated as equal to their carrying amounts. All external loans have an interest period of three months, meaning that the carrying amount closely corresponds to fair value.

Note 5 Financial instruments

Byggmax only holds derivative instruments measured at fair value in its financial statements. These instruments are measured at fair value in profit or loss. The value of the derivative instruments is based on observable data for the asset or liability, i.e. level 2. No reclassifications between the various levels took place during the fiscal year.

The information contained in this interim report is disclosed by Byggmax in compliance with the Swedish Securities Market Act (2007:528). The information was released for publication at 8.00 (CET) on July 15, 2014.

Definition of key ratios and figures

Ratios Cash flow from operating activities per share:	Definition Cash flow from operations in relation to the number of shares outstanding at the balance-sheet date
Earnings per share:	Profit after tax in relation to the number of shares outstanding at the end of the accounting period
EBIT margin:	EBIT/net sales
Equity/assets ratio:	Shareholders' equity/total assets
Return on equity	Earnings after tax divided by average equity
Shareholders' equity per share:	Shareholders' equity divided by the number of shares on the balance-sheet date
Working capital:	Working capital assets (inventories, current receivables) less working capital liabilities (accounts payable, current tax liabilities, other liabilities, accrued expenses and prepaid income)
Definition of market specific ratios and figures

Ratios	Definition
Comparable stores:	A store is classified as comparable as of the second year-end after the store was opened. Stores that are relocated to new premises in existing locations are handled in the same manner.
Gross margin:	(Net sales less goods for sale) in relation to net sales

Contacts

For further information, please contact the following individuals by telephone at + 46-8-514 930 60 or by calling the direct numbers listed below:

Magnus Agervald, President Tel: +46 (0)76-11 90 020 E-mail: magnus.agervald@byggmax.se

Pernilla Valfridsson, CFO Tel: +46 (0)76 11 90 040 E-mail: pernilla.walfridsson@byggmax.se

Background information about Byggmax and press photos are available at www.byggmax.com.

Byggmax Group AB (publ) Box 6063, SE-171 06 Solna Sweden Visiting address: Armégatan 40 Tel: +46 (0)8 514 930 60, fax: +46 (0)8 514 930 79 E-mail: info@ byggmax.se Corporate Registration Number: 556656-3531 Registered office: Solna