Bergman & Beving

Quarterly Report • Feb 12, 2014

Interim Report

1 April – 31 December 2013 (9 months)

Reporting period (1 April – 31 December 2013)

• Revenue amounted to MSEK 5,688 (5,815).
• Operating profit excluding non-recurring items increased by 39 percent to MSEK 237 (170).
• Operating profit including non-recurring items increased to MSEK 237 (221), of which non-recurring items amounted to of MSEK 0 (+51).
• Profit after net financial items increased to MSEK 196 (162), of which non-recurring items amounted to MSEK 0 (+51).
• Profit after taxes amounted to MSEK 145 (188).
• Earnings per share amounted to SEK 5.15 (6.70).
• The return on equity for the most recent 12-month period was 9 percent (13).
• The Group's operational net loan liability declined to MSEK 757 (948).
• Cash flow from operating activities totalled MSEK 282 (218).
• The equity/assets ratio at the end of the reporting period was 44 percent (38).

Third quarter (1 October-31 December 2013)

• Revenue for comparable units, measured in local currency, was unchanged during the third quarter compared with the preceding year.
• Operating profit (excluding non-recurring items) increased to MSEK 85 (77) during the quarter.

B&B TOOLS in summary

		3 months ending			9 months ending		12 months ending
	31 Dec 2013	31 Dec 2012	Change	31 Dec 2013	31 Dec 2012	Change	31 Dec 2013	31 Dec 2012	Change
Revenue, MSEK	1,954	1,988	–2%	5,688	5,815	–2%	7,539	7,843	–4%
Operating profit excluding non- recurring items, MSEK	85	77	+10%	237	170	+39%	305	264	+16%
Non-recurring items	–	+51		–	+51		–	+59
Profit after net financial including non-recurring items, MSEK	74	106	–30%	196	162	+21%	250	240	+4%
Profit for the period (after taxes), MSEK	55	149	–63%	145	188	–23%	179	245	–27%
Earnings per share, SEK	1.95	5.30	–63%	5.15	6.70	–23%	6.35	8.70	–27%
Operating margin excluding non- recurring items	4.4%	3.9%		4.2%	2.9%		4.0%	3.4%
Profit margin including non- recurring items	3.8%	5.3%		3.4%	2.8%		3.3%	3.1%
Return on equity							9%	13%
Equity per share, SEK				77.25	72.75	+6%
Equity/assets ratio				44%	38%
Number of employees at the end of the period				2,688	2,766	–3%

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 7.5 billion and approximately 2,700 employees.

President's statement

The business volume has not developed as expected during the third quarter of the financial year on a cautious market. The change work in the Group develops according to plan and the operating profit for the quarter increased by 10 percent (excluding non-recurring items) compared to the preceding year. The working capital continued to decline. This contributed to an increased cash flow from operating activities for the reporting period compared with the year-earlier period.

After the third quarter of the financial year, our operational net loan liability has declined to MSEK 757 (948) and our equity/assets ratio has improved to 44 percent (38). We have thus established a good foundation from which to take an aggressive approach to our continued development.

We are making concerted efforts to continue increasing our efficiency and improving our operating profit, while at the same time further reducing our funds tied up in working capital. Together with my committed colleagues, I am confident that we will continue to capitalise on our future improvement opportunities.

Stockholm, February 2014

Ulf Lilius President & CEO

Profit and revenue

Profit

Operating profit for the B&B TOOLS Group increased to MSEK 237 (221) for the reporting period, of which non-recurring items had an impact of MSEK 0 (+51) on profit. Operating profit was charged with depreciation and impairment losses of MSEK –28 (–32) on tangible non-current assets and amortisation and impairment losses of MSEK –4 (–22) on intangible non-current assets.

The operating margin for the period increased by 0.4 percentage points to 4.2 percent (3.8).

Profit after net financial items rose to MSEK 196 (162). Net financial items totalled MSEK –41 (–59). The profit margin was 3.4 percent (2.8).

Exchange-rate translation effects had a net impact of MSEK –7 (+1) on recognised operating profit for the period.

Profit after taxes amounted to MSEK 145 (188). Earnings per share totalled SEK 5.15 (6.70).

Revenue

Revenue declined by –2 percent to MSEK 5,688 (5,815). Exchange-rate translation effects had a negative impact of MSEK –102 (–40) on revenue during the reporting period.

Consolidated revenue for comparable units, measured in local currency, was unchanged compared with the year-earlier period for both the full reporting period (year-earlier period: –5 percent) and for the third quarter (year-earlier period: –7 percent).

Operating profit, MSEK

Revenue, MSEK

Operations

Group	3 months ending			9 months ending	Full-year
MSEK	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
Revenue	1,954	1,988	5,688	5,815	7,539	7,666
Operating profit	85	128	237	221	305	289
Operating margin, %	4.4	6.4	4.2	3.8	4.0	3.8
Adjustment for non-recurring items	–	–51	–	–51	–	–51
Adjusted operating profit	85	77	237	170	305	238
Adjusted operating margin, %	4.4	3.9	4.2	2.9	4.0	3.1

TOOLS

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

TOOLS	3 months ending			9 months ending	Full-year
MSEK	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
Revenue	1,315	1,356	3,821	3,941	5,085	5,205
Operating profit	40	–67	109	–5	141	27
Operating margin, %	3.0	–4.9	2.9	–0.1	2.8	0.5
Adjustment for non-recurring items	–	+100	–	+100	–3	+97
Adjusted operating profit	40	33	109	95	138	124
Adjusted operating margin, %	3.0	2.4	2.9	2.4	2.7	2.4

Revenue for comparable units within TOOLS, measured in local currency, decreased by a total of –1 percent during the third quarter and the full reporting period.

TOOLS Momentum continued to report a favourable earnings trend, with strong operating margins for both the third quarter and the full reporting period. Revenue for TOOLS Norway, measured in local currency, rose by 2 percent during the quarter, while operating profit was impacted negatively by a slightly lower operating margin and higher costs compared with the corresponding period in the preceding year. The weak economic situation experienced by Finnish industry during the first quarters of the financial year to date had a negative impact on TOOLS Finland's sales and earnings performance. However, a marginal improvement in the market situation was seen in the third quarter, with a slightly smaller decline in revenue of –1 percent, measured in local currency. Previously implemented cost-saving measures had a positive impact on the earnings performance during the quarter.

Revenue for TOOLS Sweden decreased by –3 percent during the third quarter and the unit reported an operating loss, excluding non-recurring items, of MSEK –3 (–6) and a somewhat higher operating margin. The operations' ongoing efforts to increase its efficiency and reduce its costs using its new joint IT and logistics solutions had a positive impact on the earnings trend.

Refer also to the specification of TOOLS, including and excluding non-recurring items, in Appendix B and C on pages 13-15.

Business Areas

The Group's four Business Areas – Luna (Tools & Machinery), Skydda (Personal Protective Equipment), Essve (Fastening Elements) and Gigant & Grunda (Work Environment & Consumables) – supply TOOLS and other market channels with industrial consumables and related services.

Business Areas	3 months ending		9 months ending		Full-year
MSEK	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
Revenue	980	971	2,850	2,800	3,748	3,698
Operating profit	53	37	145	97	200	152
Operating margin, %	5.4	3.8	5.1	3.5	5.3	4.1
Adjustment for non-recurring items	–	+10	–	+10	–3	+7
Adjusted operating profit	53	47	145	107	197	159
Adjusted operating margin, %	5.4	4.8	5.1	3.8	5.3	4.3

Revenue for comparable units, measured in local currency, for the Group's Business Areas increased by a total of 3 percent during the third quarter. Revenue for the full reporting period rose by 4 percent.

The Business Area Essve continued to strengthen its position in its customer market, and revenue for comparable units, measured in local currency, increased by 8 percent during the quarter. At the same time, Essve's operating profit increased to MSEK 6 (–2). The Business Areas Luna, Skydda and Gigant & Grunda continued to report stable earnings, despite the negative impact of the mild winter weather on the earnings trends in the third quarter, particularly for Skydda. Efforts to reduce the Business Areas' inventories (working capital) continued to generate positive results.

Refer also to the specification of Business Areas, including and excluding non-recurring items, in Appendix B and C on pages 13-15.

Group-wide and eliminations

Operating profit for "Group-wide" totalled MSEK –5 (135) for the reporting period, of which non-recurring items had an impact of MSEK 0 (+161) on profit.

The Parent Company's revenue amounted to MSEK 28 (39) and profit after net financial items to MSEK 466 (74). These results include Group contributions, intra-Group dividends and other corresponding items totalling MSEK 390 (90).

Eliminations for intra-Group inventory gains had an impact of MSEK –12 (–6) on earnings during the period.

Corporate acquisitions

No corporate acquisitions took place during the reporting period.

Profitability, cash flow and financial position

The return on consolidated capital employed for the most recent 12-month period was 9 percent (9) and the return on equity was 9 percent (13).

The return on working capital, P/WC (operating profit in relation to working capital*), amounted to 18 percent (16) for the most recent 12-month period.

Cash flow from operating activities before changes in working capital for the reporting period totalled MSEK 155 (154). Funds tied up in working capital decreased by MSEK 127 (64). During the period, the Group's inventories decreased by MSEK 60, while operating receivables declined by MSEK 132. Operating liabilities decreased by MSEK 65. Accordingly, cash flow from operating activities for the period amounted to MSEK 282 (218).

Cash flow for the period was adversely impacted in a net amount of MSEK –38 (–32) by the acquisition and sale of tangible non-current assets. Two Swedish properties have been disposed of during the year through a conveyance of shares in the subsidiaries that in turn owned the properties. Property sales had a marginal impact on earnings per share and these disposals had a positive impact of MSEK 18 (375) on cash flow.

The Group's operational net loan liability at the end of the reporting period amounted to MSEK 757 (948). Interest-bearing liabilities amounted to MSEK 815 (1,139), excluding expensed pension commitments totalling MSEK 401 (474). Liabilities to credit institutions amounted to MSEK 760 (953), net. Combined cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 530 (486).

The equity/assets ratio at the end of the reporting period was 44 percent, compared with 39 percent at the beginning of the financial year.

Equity per share totalled SEK 77.25 at the end of the reporting period, compared with SEK 73.50 at the beginning of the financial year.

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

Employees

At the end of the reporting period, the number of employees in the Group amounted to 2,688, compared with 2,780 at the beginning of the financial year.

Share structure and repurchase of own shares

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

Class of share	As of 31 December 2013
Class A shares	1,067,812
Class B shares	27,368,604
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 2013, 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, on 31 December 2013, the holding of Class B treasury shares amounted to 340,000 shares, corresponding to 1.2 percent of the total number of shares and 0.9 percent of the total number of votes.

Following a resolution passed by the Annual General Meeting in August 2013, 13 members of senior management 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 outstanding Class B shares 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 10.00 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 is SEK 101.90 and the redemption period is from 12 September 2016 until 9 June 2017, inclusive. The issued call options have not resulted in any dilution effect as of 31 December 2013.

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

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.

As of 1 April 2013, B&B TOOLS applies the updated IAS 19 standard, with full retroactive application. For B&B TOOLS, this entails an immediate increase in net pension commitments (classified as a financial liability) and an equivalent decrease – taking tax effects into account – of earnings brought forward. The updated standard also includes new rules regarding the recognition of a special payroll tax. Had the new rules been applied as of 31 March 2013, B&B TOOLS' net pension commitments would have been MSEK 55 higher, including a special payroll tax of MSEK 10. Taking into account deferred tax, the updated standard would have had an impact on earnings brought forward that was MSEK 43 less than the amount that was recognised as of 31 March 2013. Except for other comprehensive income, the impact on the consolidated income statement was immaterial and has thus not been reported separately. As a result of the changes in the recognition of pensions as described above and the increased volatility it causes, as of 1 April 2013, B&B TOOLS recognises a so-called operational net debt/equity ratio, whereby the net loan liability is calculated excluding pension provisions. As of 2013, the Group applies the new IFRS 13 Fair Value Measurement standard and amendments to IFRS 7 Financial Instruments: Disclosures. The prescribed information is presented on page 10.

In all other respects, the same accounting policies and bases of judgement as in the Annual Report for 2012/2013 have been applied.

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.

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 2013, the largest shareholders in terms of votes as of 31 December 2013 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 Chairman of the Board Anders Börjesson, Björn Franzon (representative of Swedbank Robur funds), Tom Hedelius, Conny Karlsson (representative of CapMan Public Market Investment) and Per Trygg (representative of SEB Funds). Information regarding how to contact the Election Committee is available on B&B TOOLS' website.

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 28 of B&B TOOLS' Annual Report for 2012/2013.

Stockholm, 12 February 2014

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 16.

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	3 months			9 months	Full-year
	Oct – Dec	Oct – Dec	Apr – Dec	Apr – Dec		2012/
MSEK	2013	2012	2013	2012	12 months	2013
TOOLS	1,315	1,356	3,821	3,941	5,085	5,205
Business Areas	980	971	2,850	2,800	3,748	3,698
Group-wide	167	163	498	467	642	611
Eliminations	–508	–502	–1,481	–1,393	–1,936	–1,848
Total	1,954	1,988	5,688	5,815	7,539	7,666

Revenue by quarter			2013/2014	2012/2013
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1
TOOLS	1,315	1,172	1,334	1,264	1,356	1,221	1,364
Business Areas	980	903	967	898	971	876	953
Group-wide	167	163	168	144	163	155	149
Eliminations	–508	–469	–504	–455	–502	–434	–457
Total	1,954	1,769	1,965	1,851	1,988	1,818	2,009

OPERATING PROFIT/LOSS	3 months			9 months	Full-year
	Oct – Dec	Oct – Dec	Apr – Dec	Apr – Dec	Rolling	2012/
MSEK	2013	2012	2013	2012	12 months	2013
TOOLS	40	–67	109	–5	141	27
Business Areas	53	37	145	97	200	152
Group-wide	–4	161	–5	135	–24	116
Eliminations	–4	–3	–12	–6	–12	–6
Total	85	128	237	221	305	289

Operating profit/loss by quarter			2013/2014				2012/2013
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1
TOOLS	40	36	33	32	–67	40	22
Business Areas	53	51	41	55	37	30	30
Group-wide	–4	5	–6	–19	161	–3	–23
Eliminations	–4	–5	–3	0	–3	0	–3
Total	85	87	65	68	128	67	26

Adjusted operating profit/loss excluding non-recurring items

ADJUSTED OPERATING	3 months			9 months	Full-year
PROFIT/LOSS	Oct – Dec Oct – Dec		Apr – Dec Apr – Dec		Rolling	2012/
MSEK	2013	2012	2013	2012	12 months	2013
TOOLS	40	33	109	95	138	124
Business Areas	53	47	145	107	197	159
Group-wide	–4	0	–5	–26	–18	–39
Eliminations	–4	–3	–12	–6	–12	–6
Total	85	77	237	170	305	238

Adjusted operating profit/loss by quarter			2013/2014				2012/2013
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1
TOOLS	40	36	33	29	33	40	22
Business Areas	53	51	41	52	47	30	30
Group-wide	–4	5	–6	–13	0	–3	–23
Eliminations	–4	–5	–3	0	–3	0	–3
Total	85	87	65	68	77	67	26

Group summary

INCOME STATEMENT	3 months		9 months		Full-year
	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
MSEK Revenue	1,954	1,988	5,688	5,815	7,539	7,666
Shares in profit of associated co's	0	0	0	–1	1	0
Other operating income	1	246	3	250	6	253
Total operating revenue	1,955	2,234	5,691	6,064	7,546	7,919
Goods for resale	–1,160	–1,234	–3,378	–3,539	–4,460	–4,621
Personnel costs	–419	–472	–1,214	–1,313	–1,628	–1,727
Depreciation, amortisation, impairment losses & reversal of impairment losses	–10	–24	–32	–54	–44	–66
Other operating expenses	–281	–376	–830	–937	–1,109	–1,216
Total operating expenses	–1,870	–2,106	–5,454	–5,843	–7,241	–7,630
Operating profit	85	128	237	221	305	289
Financial income and expenses	–11	–22	–41	–59	–55	–73
Profit after net financial items	74	106	196	162	250	216
Taxes	–19	43	–51	26	–71	6
Profit for the period	55	149	145	188	179	222
Of which attributable to:
Parent Company shareholders	55	149	145	188	179	222
Non-controlling interest	0	0	0	0	0	0
Earnings per share, SEK
– before dilution	1.95	5.30	5.15	6.70	6.35	7.90
– after dilution	1.95	5.30	5.15	6.70	6.35	7.90

Refer also to summary of income statement on Adjusted operating profit excluding non-recurring items in Appendix A on page 13.

STATEMENT OF COMPREHENSIVE		3 months	9 months		Full-year
INCOME MSEK	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
Profit for the period	55	149	145	188	179	222
Other comprehensive income for the period
Components that will not be reclassified to profit for the year
Actuarial gains (losses) attributable defined-benefit pension plans	–3	11	62	14	73	25
Tax attributable to components that will not be reclassified	1	–3	–13	–4	–18	–9
	–2	8	49	10	55	16
Components that will be reclassified to profit for the year
Translation differences	3	13	–6	–14	–29	–37
Translation differences from non-controlling interest	–	–	–	–	–	–
Effects of hedge accounting	–2	–6	–1	–7	6	0
Tax attributable to components that may be reclassified	1	–2	0	1	–3	–2
	2	5	–7	–20	–26	–39
Comprehensive income for the period	55	162	187	178	208	199
Of which attributable to:
Parent Company shareholders	55	162	187	178	208	199
Non-controlling interest	0	0	0	0	0	0

31 Dec 2013	31 Dec 2012	31 Mar 2013
1,793	1,788	1,781
232	255	252
3	4	6
3	5	4
11	10	11
107	137	118
1,395	1,518	1,443
1,043	1,122	1,192
264	309	218
55	186	214
4,906	5,334	5,239
2,170	2,044	2,065
434	1,136	1,129
401	474	465
106	142	106
381	3	3
742	778	823
672	757	648
4,906	5,334	5,239
		1,812
		–430
1,288	1,414	1,382
		914
	1,696 –408 757	1,862 –448 948

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

STATEMENT OF CHANGES IN EQUITY
MSEK	31 Dec 2013	31 Dec 2012	31 Mar 2013
Opening equity	2,065	2,009	2,009
of which non-controlling interest	–	0	0
Amendment in accounting policies	–	–59	–59
Dividend, Parent Company shareholders	–84	–84	–84
Sale of call options	2	–	–
Comprehensive income for the period attributable to:
– Parent Company shareholders	187	178	199
– Non-controlling interest	–	0	–
Closing equity	2,170	2,044	2,065
of which non-controlling interest	–	0	–

CASH-FLOW STATEMENT	3 months		9 months		Full-year
MSEK	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
Operating activities before changes in working capital	56	130	155	154	157	156
Changes in working capital	99	135	127	64	169	106
Cash flow from operating activities	155	265	282	218	326	262
Acquisition of intangible and tangible non-current assets	–19	–14	–39	–39	–48	–48
Sales of intangible and tangible non-current assets	0	6	1	7	1	7
Acquisition of subsidiaries and other business units	–	–	–	–	–	–
Sales of subsidiaries and other business units	18	375	18	375	18	375
Cash flow before financing	154	632	262	561	297	596
Financing activities	–179	–518	–422	–460	–426	–464
Cash flow for the period	–25	114	–160	101	–129	132
Cash and cash equivalents at the beginning of the period	79	71	214	85	186	85
Exchange-rate difference in cash and cash equivalents	1	1	1	0	–2	–3
Cash and cash equivalents at the end of the period	55	186	55	186	55	214

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		Revenue from internal customers		Total revenue		Operating profit/loss
MSEK	Apr–Dec 2013	Apr–Dec 2012	Apr–Dec 2013	Apr–Dec 2012	Apr–Dec 2013	Apr–Dec 2012	Apr–Dec 2013	Apr–Dec 2012
TOOLS	3,782	3,901	39	40	3,821	3,941	109	–5
Business Areas	1,899	1,908	951	892	2,850	2,800	145	97
Total operating segment	5,681	5,809	990	932	6,671	6,741	254	92
Group-wide	7	6	491	461	498	467	–5	135
Eliminations	–	–	–1,481	–1,393	–1,481	–1,393	–12	–6
Group	5,688	5,815	0	0	5,688	5,815	237	221

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

TOOLS comprises the Group's reseller operations in Sweden, Norway and Finland (which operate within the framework of TOOLS) and TOOLS Momentum, which together form the Group's market channel for industrial consumables and industrial components for Nordic industry.

The Group's four Business Areas conduct operations in various product and application areas (Tools & Machinery, Personal Protective Equipment, Fastening Elements and Work Environment & 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, legal and business development. Infrastructure operations comprise IT, supply chain and master data

Intra-Group pricing between the operating segments occurs on market terms.

management (MDM).

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	3 months		9 months		Full-year
SEK	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
Earnings before dilution	1.95	5.30	5.15	6.70	6.35	7.90
Earnings after dilution	1.95	5.30	5.15	6.70	6.35	7.90
Equity, at the end of the period			77.25	72.75		73.50
Equity after dilution, at the end of the period			77.25	72.75		73.50
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	28,096	28,096	28,096	28,096	28,096	28,096

¹ As of 31 December 2013, no dilution effect had arisen based on the issued call options on repurchased Class B shares.

Parent Company summary

INCOME STATEMENT	3 months			9 months		Full-year
MSEK	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
Revenue	9	13	28	39	37	48
Operating expenses	–5	–58	–27	–92	–39	–104
Operating profit/loss Financial income and expenses	4 29	–45 24	1 465	–53 127	–2 426	–56 88
Profit/loss after net financial items Appropriations	33 –	–21 –	466 –	74 –	424 46	32 46
Profit/loss before taxes Taxes	33 –7	–21 3	466 –17	74 2	470 –22	78 –3
Profit/loss for the period	26	–18	449	76	448	75

STATEMENT OF COMPREHENSIVE	3 months			9 months	Full-year
INCOME MSEK	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
Profit for the period	26	–18	449	76	448	75
Other comprehensive income for the period
Effects of hedge accounting	–2	0	1	–2	7	4
Taxes attributable to other comprehensive income	0	0	–1	0	–2	–1
Comprehensive income for the period	24	–18	449	74	453	78

BALANCE SHEET
MSEK	31 Dec 2013	31 Dec 2012	31 Mar 2013
Assets
Intangible non-current assets	0	1	1
Tangible non-current assets	2	5	3
Financial non-current assets	3,920	4,056	3,784
Current receivables	16	31	280
Cash and cash equivalents	–	122	142
Total assets	3,938	4,215	4,210
Equity and liabilities
Equity	1,628	1,257	1,261
Untaxed reserves	201	247	201
Provisions	48	50	50
Non-current liabilities	633	1,364	1,426
Current liabilities	1,428	1,297	1,272
Total equity, provisions and liabilities	3,938	4,215	4,210

Appendix

A. Summary of income statement – Adjusted operating profit excluding nonrecurring items

ADJUSTED INCOME STATEMENT	3 months			9 months	Full-year
excluding non-recurring items MSEK	Oct – Dec 2013	Oct – Dec 2012	Apr – Dec 2013	Apr – Dec 2012	Rolling 12 months	2012/ 2013
Revenue	1,954	1,988	5,688	5,815	7,539	7,666
Shares in profit/loss of associated co's	0	0	0	–1	1	0
Other operating income	1	1	3	5	6	8
Total operating revenue	1,955	1,989	5,691	5,819	7,546	7,674
Goods for resale	–1,160	–1,177	–3,378	–3,482	–4,462	–4,566
Personnel costs	–419	–415	–1,214	–1,256	–1,622	–1,664
Depreciation, amortisation, impairment losses and reversal of impairment losses	–10	–12	–32	–42	–44	–54
Other operating expenses	–281	–308	–830	–869	–1,113	–1,152
Total operating expenses	–1,870	–1,912	–5,454	–5,649	–7,241	–7,436
Adjusted operating profit	85	77	237	170	305	238
Contribution ratio, %	40.6%	40.8%	40.6%	40.1%	40.8%	40.4%
Operating margin, %	4.4%	3.9%	4.2%	2.9%	4.0%	3.1%

B. Specification – TOOLS and Business Areas including non-recurring items

	Revenue, MSEK
	3 months ending		9 months ending		Full-year
	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
TOOLS
Sweden	507	526	1,420	1,508	1,895	1,983
Norway	404	428	1,199	1,182	1,595	1,578
Finland	180	176	529	558	696	725
TOOLS Momentum	238	237	709	720	946	957
Eliminations	–14	–11	–36	–27	–47	–38
TOOLS TOTAL	1,315	1,356	3,821	3,941	5,085	5,205
BUSINESS AREAS
Luna (Tools & Machinery)	271	280	796	791	1,062	1,057
Skydda (Personal Protective Equipment)	311	299	864	831	1,112	1,079
Essve (Fastening Elements)	172	162	550	538	720	708
Gigant & Grunda (Work Environment & Consumables)	227	232	644	642	860	858
Eliminations	–1	–2	–4	–2	–6	–4
BA TOTAL	980	971	2,850	2,800	3,748	3,698
GROUP-WIDE ELIMINATIONS	167 –508	163 –502	498 –1,481	467 –1,393	642 –1,936	611 –1,848
GROUP	1,954	1,988	5,688	5,815	7,539	7,666

B. Specification – TOOLS and Business Areas including non-recurring items – cont.

				Operating profit/loss, MSEK
	3 months ending		9 months ending		Full-year
	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
TOOLS
Sweden	–3	–91	–28	–122	–40	–134
Norway	14	19	50	45	66	61
Finland	2	–18	2	–11	0	–13
TOOLS Momentum	27	23	86	83	117	114
Eliminations	0	0	–1	0	–2	–1
TOOLS TOTAL	40	–67	109	–5	141	27
BUSINESS AREAS
Luna (Tools & Machinery)	21	23	58	57	85	84
Skydda (Personal Protective Equipment)	19	21	56	46	74	64
Essve (Fastening Elements)	6	–2	26	5	26	5
Gigant & Grunda (Work Environment & Consumables)	7	–5	5	–11	14	–2
Eliminations	0	0	0	0	1	1
BA TOTAL	53	37	145	97	200	152
GROUP-WIDE	–4	161	–5	135	–24	116
ELIMINATIONS	–4	–3	–12	–6	–12	–6
GROUP	85	128	237	221	305	289

			Operating margin, %
	3 months ending		9 months ending		Full-year
	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
TOOLS
Sweden	–0.6	–17.3	–2.0	–8.1	–2.1	–6.8
Norway	3.5	4.4	4.2	3.8	4.1	3.9
Finland	1.1	–10.2	0.4	–2.0	0.0	–1.8
TOOLS Momentum	11.3	9.7	12.1	11.5	12.4	11.9
Eliminations	–	–	–	–	–	–
TOOLS TOTAL	3.0	–4.9	2.9	–0.1	2.8	0.5
BUSINESS AREAS
Luna (Tools & Machinery)	7.7	8.2	7.3	7.2	8.0	7.9
Skydda (Personal Protective Equipment)	6.1	7.0	6.5	5.5	6.7	5.9
Essve (Fastening Elements)	3.5	–1.2	4.7	0.9	3.6	0.7
Gigant & Grunda (Work Environment & Consumables)	3.1	–2.2	0.8	–1.7	1.6	–0.2
Eliminations	–	–	–	–	–	–
BA TOTAL	5.4	3.8	5.1	3.5	5.3	4.1
GROUP-WIDE	–	–	–	–	–	–
ELIMINATIONS	–	–	–	–	–	–
GROUP	4.4	6.4	4.2	3.8	4.0	3.8

C. Specification – TOOLS and Business Areas excluding non-recurring items

		Proforma Operating profit/loss, MSEK
	3 months ending		9 months ending		Full-year
	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
TOOLS
Sweden	–3	–6	–28	–37	–43	–52
Norway	14	19	50	45	66	61
Finland	2	–3	2	4	0	2
TOOLS Momentum	27	23	86	83	117	114
Eliminations	0	0	–1	0	–2	–1
TOOLS TOTAL	40	33	109	95	138	124
BUSINESS AREAS
Luna (Tools & Machinery)	21	23	58	57	86	85
Skydda (Personal Protective Equipment)	19	21	56	46	74	64
Essve (Fastening Elements)	6	–2	26	5	26	5
Gigant & Grunda (Work Environment & Consumables)	7	5	5	–1	10	4
Eliminations	0	0	0	0	1	1
BA TOTAL	53	47	145	107	197	159
GROUP-WIDE	–4	0	–5	–26	–18	–39
ELIMINATIONS	–4	–3	–12	–6	–12	–6
GROUP	85	77	237	170	305	238

			Proforma Operating margin, %
	3 months ending		9 months ending		Full-year
	31 Dec 2013	31 Dec 2012	31 Dec 2013	31 Dec 2012	Rolling 12 months	2012/ 2013
TOOLS
Sweden	–0.6	–1.1	–2.0	–2.5	–2.3	–2.6
Norway	3.5	4.4	4.2	3.8	4.1	3.9
Finland	1.1	–1.7	0.4	0.7	0.0	0.3
TOOLS Momentum	11.3	9.7	12.1	11.5	12.4	11.9
Eliminations	–	–	–	–	–	–
TOOLS TOTAL	3.0	2.4	2.9	2.4	2.7	2.4
BUSINESS AREAS
Luna (Tools & Machinery)	7.7	8.2	7.3	7.2	8.1	8.0
Skydda (Personal Protective Equipment)	6.1	7.0	6.5	5.5	6.7	5.9
Essve (Fastening Elements)	3.5	–1.2	4.7	0.9	3.6	0.7
Gigant & Grunda (Work Environment & Consumables)	3.1	2.2	0.8	–0.2	1.2	0.5
Eliminations	–	–	–	–	–	–
BA TOTAL	5.4	4.8	5.1	3.8	5.3	4.3
GROUP-WIDE	–	–	–	–	–	–
ELIMINATIONS	–	–	–	–	–	–
GROUP	4.4	3.9	4.2	2.9	4.0	3.1

D. Compilation of key financial ratios

KEY FINANCIAL RATIOS		12 months ending
	31 Dec 2013	31 Mar 2013	31 Mar 2012	31 Mar 2011
Revenue, MSEK	7,539	7,666	8,201	7,885
Operating profit, MSEK	305	289	409	347
Profit after net financial items, MSEK	250	216	318	280
Profit for the period, MSEK	179	222	227	194
Operating margin	4.0%	3.8%	5.0%	4.4%
Profit margin	3.3%	2.8%	3.9%	3.6%
Return on capital employed	9%	8%	11%	9%
Return on equity	9%	11%	12%	11%
P/WC (Operating profit/Working capital*)	18%	15%	21%	19%
Operational net loan liability (closing balance), MSEK	757	914	1,414	1,407
Equity (closing balance), MSEK	2,170	2,065	1,950	1,840
Equity/assets ratio	44%	39%	35%	34%
Operational net debt/equity ratio	0.35	0.44	0.73	0.76
Number of employees at the end of the period	2,688	2,780	2,880	2,840

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

KEY PER-SHARE DATA	12 months ending
	31 Dec 2013	31 Mar 2013	31 Mar 2012	31 Mar 2011
Earnings, SEK	6.35	7.90	8.10	6.90
Earnings after dilution, SEK	6.35	7.90	8.10	6.90
Cash flow, SEK	11.60	9.30	4.05	3.65
Equity, SEK	77.25	73.50	69.40	65.50
Share price, SEK	117.75	85.00	59.25	113.50

Dates for forthcoming financial information

Financial Report for 1 April 2013 – 31 March 2014 will be presented on 15 May 2014.

The Annual Report for the 2013/2014 financial year will be distributed to shareholders who so have requested in mid-July 2014 and will be available at the Company's office and website as of the same date.

B&B TOOLS AB's 2014 Annual General Meeting will be held in Stockholm on 21 August 2014.

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 OMX Stockholm. This information was submitted for publication on 12 February 2014 at 12:20 p.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