MEKO

Interim / Quarterly Report • Aug 22, 2008

22 August,2008

Interim report January – June 2008

1 A pril– 30 June

• Revenues increased by 7 per cent to SEK 715 M (666). Taking into account currency effects and more workdays during the quarter, revenues increased by 2 per cent.
• EB IT amounted to SEK 79 M (76) and the EB IT margin to 11 per cent (11).
• Profit after financialitems amounted to SEK 78 M (73).
• Profit after tax amounted to SEK 56 M (52) and earnings per share before and after dilution amounted to SEK 1.72 (1.62).

1 January – 30 June

• Revenues increased by 5 per cent to SEK 1,341 M (1,272). Taking into account currency effects, revenues increased by 4 per cent.
• EB IT amounted to SEK 126 M (129) and the EB IT margin to 9 per cent (10).
• Profit after financialitems amounted to SEK 131 M (135).
• Profit after tax amounted to SEK 95 M (96).
• Earnings per share before and after dilution amounted to SEK 2.92 (2.96).
• Three brand-based workshops joined Mekonomen. Through the Mekonomen Service C entres and MekoPartner concepts, Mekonomen offers the opportunity of totalbusiness improvement for former brandbased entrepreneurs.
• During the first six months of the year, 173 new workshops were affiliated, of which 132 belonged to the new MekoPartner workshop chain. The totalnumber of workshops in the chain was 951, compared with 778 at the end of 2007.
• A t the end of the period, contracts were signed in the corporate market with B ravida, A vis and Relacom in Sweden and with SA C L easing and IKEA in Denmark.

SU MMARY O F TH E G RO U P'S EARN IN G S TREN D	April– June			January – June			12 months	Full year
	2008 2007 C hange % 2008 2007 C hang e %					July – June	2007
Revenues,SEK M	715	666	7	1 341	1 272	5	2 619	2 550
EBIT,SEK M	79	76	4	126	129	-2	247	250
Profitafterfinancialitems,SEK M	78	73	7	131	135	-3	415	418
Profitaftertax,SEK M	56	52	8	95	96	-1	347	348
Earnings pershare,SEK	1.72	1.62	6	2.92	2.96	-1	10.99	11.03
EBIT margin,%	11	11	-	9	10	-	9	10

C EO 's comments

During the second quarter of 2008, revenues increased by 7 per cent to SEK 715 M (666) compared with the year-earlier period.

For the first six months of the year the revenues increased by 5 per cent to SEK 1,341 M (1,272). The increase signifies a strong market position through higher market shares in all markets. The total market trend was negative during the first quarter and weakened additionally during the second quarter.

Mekonomen's growth was attributable to the strategic efforts that we implemented, which also entailed increased opening hours, a new workshop chain MekoPartner, the new Mekonomen Fleet business area within the corporate segment and aggressive brand building through a series of market activities.

EB IT increased to SEK 79 M (76) for the second quarter and EB IT for the first six month of the yerar was 126 M (129). The strategic efforts had a short-term negative impact on EB IT.

O ur action program in Denmark is progressing according to plan. During the second quarter, revenues in Denmark increased by 8 per cent and EB IT was positive.

W ithin our new Mekonomen Fleet business area, we now have partnerships encompassing service, repairs and accessories for B ravida, A V IS and Relacom's vehicle fleets in Sweden and SA C L easing and IKEA 's vehicle fleets in Denmark.

To date, our efforts in the workshop area have resulted in 192 new workshops becoming affiliated with Mekonomen, of which 46 to Mekonomen Service C entres and 146 to the new MekoPartner concept. The number of workshops in Sweden increased by 69, in N orway by 48 and in Denmark by 75. A milestone within the workshop area is that we are now also attractive to brand-based areas. During the year, cooperation was initiated with U vefalk B il, A mbjörnssons B il and B ilexop. These workshops were formerly brand-based but recognised, through Mekonomen, the opportunity to supplement their businesses and offer workshop services to allcar owners, regardless of brand.

O ur estimate is that the totalmarket willcontinue to be weak for the remaing part of the year. Mekonomen is wellequipped and willend up the market winner.

H åkan L undstedt

President and C EO

C onsolidated sales and earnings

REV EN U ES

1 A pril– 30 June

Revenues increased by 7 per cent to SEK 715 M (666). A djusted for currency effects, revenues increased by 6 per cent. C alculated on comparable workdays, revenues increased by 3 per cent, and adjusted for currency effects the increase was 2 per cent. The number of workdays was an average of three days more compared with the yearearlier period. The underlying revenues (defined as comparable workdays and taking into account currency effects) increased in allcountries.

1 January – 30 June

Revenues increased by 5 per cent to SEK 1,341 M (1,272). A djusted for currency effects, revenues increased by 4 per cent. The number of workdays was the same as in the year-earlier period. The underlying revenues increased in allcountries.

EB IT

1 A pril– 30 June

EB IT amounted to SEK 79 M (76) and the EB IT margin to 11 per cent (11). A s a result of property divestment during the third quarter of 2007, lease expenses increased by SEK 7 M during the second quarter of 2008 compared with the year-earlier period. C osts for planned growth measures were charged against EB IT for all countries.

1 January – 30 June

EB IT amounted to SEK 126 M (129) and the EB IT margin to 9 per cent (10). A s a result of property divestment during the third quarter of 2007, lease expenses increased by SEK 14 M during the first six months of 2008 compared with the year-earlier period. C osts for planned growth measures were charged against EB IT for allcountries.

PR O FIT A FTER FIN A N C IA L ITEM S

Profit after financialitems amounted to SEK 78 M (73) for the second quarter and to SEK 131 M (135) for the first six months of the year. N et interest income/expense for the second quarter amounted to an expense of SEK 1 M (expense: 3) and other financial items amounted to SEK 0 M (0). N et interest income for the first six months of the year amounted to SEK 2 M (expense: 4) and other financialitems to SEK 3 M (10). Financial items for the six months included capital gains of SEK 2 M (0) pertaining to the divestment of one of the G roup's remaining properties and currency effects of SEK 1 M (10).

Financialposition

C ash flow from operating activities amounted to SEK 20 M (90) for the second quarter and to SEK 38 M (176) for the first six months of the year. The difference between the years is due to tax paid and accounts payable during the first six months of 2007. C ash and cash equivalents and short-term investments on 30 June, 2008 amounted to SEK 61 M compared with SEK 290 M on 31 December 2007. The equity/assets ratio was 56 per cent (45). Interest-bearing liabilities amounted to SEK 116 M (418) and at the end of the period, with net indebtedness amounting to SEK 55 M compared with net cash in hand of SEK 284 M on 31 December 2007.

Investments

During the second quarter, investments in fixed assets amounted to SEK 11 M (11), and investments for the first six months amounted to SEK 26 M (17). C ompany and business acquisitions amounted to SEK 12 M (5) during the second quarter and for the six months to SEK 19 M (10). A cquired assets totalled SEK 9 M and acquired liabilities SEK 0 M. B esides goodwill, which amounted to SEK 11 M, no intangible surplus values have been identified in connection with the acquisitions.

Acquisitions and start-ups

During the second quarter, one store was acquired in G othenburg and one store in Kolding, Denmark. In conjunction with the acquisition in Denmark, the existing store in Kolding was discontinued. In addition, minority shares were acquired in Swedish stores.

During the first quarter, a cooperation store was acquired in Kongsvinger, N orway and a new store was opened in U ppsala. In addition, minority shares were acquired in Sweden. Two stores, Sätra and Ö stberga, were closed in conjunction with the opening of the new workshop centre in Stockholm.

The totalnumber of stores in the chain at the end of the period was 195 (192), of which 160 (150) were wholly owned stores. The number of affiliated workshops increased to 951 (759), of which Mekonomen Service C entres increased to 819 (759) and MekoPartner to 132 (0).

Mekonomen Fleet

In addition to the existing agreement with B ravida, Mekonomen in Sweden signed agreements in May comprising service, repairs and accessories with A V IS and Relacom. In Denmark, agreements were signed with SA C L easing and IKEA in June.

H uman resources

The number of employees at the end of the period was 1,384 (1,265) and the average number of employees during the period was 1,336 (1,254). The rise was primarily due to an increase in the sales organization in all countries.

Performance by geographic market

EARN IN G S TREN D	Ap ril– June				January – June	12 months	Full-year
	2008	2007	C hang e,%	2008	2007	C hang e,%	July - June	2007
N etsales (external),SEK M	347	330	5	641	628	2	1 283	1 270
EBIT,SEK M	60	55	9	98	108	-9	206	216
EBIT margin,%	17	16	-	15	17	-	16	17
N umberofstores/ofw hich w holly ow ned				113/94	112/88	-	-	114/93
N umberofMekonomen Service C entres				350	336	-	-	337
N umberofMekoPartner				50	-	-	-	-

SW EDEN

In Sweden, the number of workdays was three more in the second quarter compared with the year-earlier period, corresponding to estimated sales of approximately SEK 15 M. The underlying net sales increased by 1 per cent. For the first six months of the year, the number of workdays was one more than in the year-earlier period and the underlying net sales increased by 1 per cent.

A s a result of property divestment during the third quarter of 2007, leasing expenses increased by SEK 4 M for the second quarter of 2008 compared with the year-earlier period. For the first six months, the increase was SEK 8 M.

EARN IN G S TREN D	Ap ril– June				January – June	12 months	Full-year
	2008	2007	C hang e, %	2008	2007	C hang e, %	July - June	2007
N etsales (external),SEK M	178	154	16	319	288	11	615	584
EBIT,SEK M	26	20	30	42	39	8	84	81
EBIT margin,%	14	13	-	13	14	-	14	14
N umberofstores/ofw hich w holly ow ned				42/26	41/23	-	-	42/25
N umberofMekonomen Service
C entres				323	302	-	-	305
N umberofMekoPartner				28	-	-	-	-

N O RW A Y

In N orway, the number of workdays was four more in the second quarter compared with the year-earlier period, corresponding to estimated sales of approximately SEK 10 M. C urrency effects were positive. The underlying net sales increased by 6 per cent. For the six months, the number of workdays was one more compared with the year-earlier period. C urrency effects were positive and the underlying net sales increased by 6 per cent.

DEN M A RK

EARN IN G S TREN D	Ap ril– June			January – June			12	Full-year
						months
	2008	2007	C hang e, %	2008	2007	C hang e, %	July - June	2007
N etsales (external),SEK M	184	170	8	361	333	8	689	661
EBIT,SEK M	2	1	100	2	0	-	-20	-22
EBIT margin,%	1	1	-	1	0	-	-3	-3
N umberofstores/ofw hich
w holly ow ned				39/39	39/39	-	-	38/38
N umberofMekonomen Service
C entres				146	121	-	-	136
N umberofMekoPartner				54	-	-	-	-

In Denmark, the number of workdays was two more in the second quarter compared with the year-earlier period, corresponding to net sales of approximately SEK 6 M. C urrency effects were positive. The underlying net sales increased by 4 per cent. For the six months, the number of workdays was two fewer than the yearearlier period. C urrency effects were positive and the underlying net sales increased by 8 per cent.

A s a result of property divestment during the third quarter of 2007, leasing expenses increased by SEK 3 M for the second quarter of 2008 compared with the year-earlier period. For the first six months, the increase was SEK 6 M.

		Q 1	Q 2		Q 3		Q 4		Full-year
	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Sw eden	62	64	62	59	66	65	62	62	252	250
N orw ay	61	64	63	59	66	65	62	62	252	250
Denmark	61	65	61	59	66	65	62	61	250	250

N umberofw orkdays perquarterand country

Significantrisks and uncertainties

The company conducted a review and assessment of operating and financialrisks and uncertainties in accordance with the description in the 2007 A nnualReport and found that no significant risks have changed since then. Risk factors and exposures for the Parent C ompany and the G roup in the immediate future primarily involve logistics and delivery rate and changing the business systems in the G roup, a process that was initiated in Sweden during 2007 and willbe implemented in the rest of the G roup during 2008. Refer to the 2007 A nnual Report for a complete report on the risks that affect the G roup.

ParentC ompany

The Parent C ompany's operations comprise G roup management and G roup-wide functions, as wellas finance management. A fter net financialitems, the Parent C ompany reported a loss of SEK 15 M (0) for the quarter and of SEK 19 M (profit: 4) for the six-month period, excluding dividends from subsidiaries. The average number of employees for the period was 61 (48). During the first six months of the year, Mekonomen A B sold products and services to G roup companies for a totalof SEK 35 M (31).

Events afterthe end ofthe period

N o significant events occurred after the end of the reporting period.

Accounting principles

Mekonomen applies the InternationalFinancialReporting Standards (IFRS) as adopted by the EU . This interim report was prepared in accordance with the A nnualA ccounts A ct, IA S 34 Interim FinancialReporting and RR 31 Interim Reporting for G roups. The new or revised IFRS standards or IFRIC interpretations that became effective on 1 January 2008 have not had any materialeffect on the G roup's income statement or balance sheets. The accounting principles in accordance with IFRS are unchanged from the preceding year and are described in the 2007 A nnualReport. The Parent C ompany prepares its accounts in accordance with the A nnual A ccounts A ct and applies the same accounting principles and valuation methods as in the most recent A nnual Report.

Forthcoming financialreporting dates

IN FO RM A TIO N	PER IO D	DA TE
Interim report	January – September 2008	4 N ovember, 2008
Y ear-end report	January – December 2008	18 February, 2009
Interim report	January – March 2009	14 May, 2009
Interim report	January – June 2009	26 A ugust, 2009
Interim report	January – September 2009	10 N ovember, 2009
Y ear-end report	January – December 2009	February 2010

Board ofDirectors'assurance

The B oard of Directors and C EO provide their assurance that the six-month report presents an accurate view of the company's and the G roup's operations, financialposition and profits and describes the significant risks and uncertainties facing the company and companies included in the G roup.

Stockholm, 22 A ugust 2008 Mekonomen A B (publ), C orp. O rg. N o: 556392-1971

Fredrik Persson Marcus Storch C hairman of the B oard V ice C hairman of the B oard

A ntonia A x:son Johnson W olff H uber B oard member B oard member

Kenny B räck H elena Skåntorp B oard member B oard member

A nders G C arlberg H åkan L undstedt B oard member President and C EO

This report has not been subject to review by the C ompany's auditors.

For further information, please contact: H åkan L undstedt, President and C EO Mekonomen A B , Tel: +46 (0)8-464 00 00 G unilla Spongh, C FO Mekonomen A B , Tel: +46 (0)8-464 00 00 B oelSundvall, H ead of communications Mekonomen A B , Tel: +46 (0)8-464 00 00

Mekonomen A B (publ), C orp. Reg. N o: 556392-1971 B ox 6077 SE-141 06 Kungens Kurva Tel: +46 (0)8-464 00 00, Fax: +46 (0)8-464 00 66

Mekonomen is a spare parts chain with its own wholesale operation and a nationwide retailnetwork of wholly owned and cooperating stores in Sweden, N orway and Denmark. G roup revenues mainly consist of sales to service centres and motorists via wholly owned stores, and wholesale operations aimed at cooperating stores.

www.mekonomen.se

QU ARTERLY DATA BY SEG MEN T	2008		2007				2006
	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2
N ET SALES,SEK M
Sw eden	347	294	328	314	330	299	322	311	329
N orw ay	178	142	150	146	154	134	133	133	151
Denmark	184	178	166	162	170	163	162	158	176
G roup-w ide and eliminations	3	3	5	4	3	3	6	3	3
G RO U P	712	617	649	626	657	599	623	605	659
EBIT,SEK M
Sw eden	60	38	51	57	55	53	58	57	49
N orw ay	26	16	17	25	20	20	7	20	21
Denmark	2	0	-21	0	1	-1	9	1	-12
G roup-w ide and eliminations	-9	-6	-4	-3	1	-18	0	-7	-21
G RO U P	79	48	43	78	76	53	74	71	37
IN VESTMEN TS,SEK M
Sw eden	6	5	4	3	3	2	7	2	3
N orw ay	1	1	0	1	1	1	1	1	1
Denmark	1	4	4	2	5	3	7	1	2
G roup-w ide and eliminations	3	5	7	5	1	1	0	1	2
G RO U P	11	15	15	11	11	6	15	5	8
EBIT MARG IN ,%
Sw eden	17	13	15	18	16	18	18	18	15
N orw ay	14	11	11	17	13	15	5	15	14
Denmark	1	0	-13	0	1	-1	6	1	-7
G RO U P	11	8	7	13	11	9	12	12	6

C onsolidated financialreports

	April - June				January - June	12 months	Full-year
CONDENSED INCOME STATEMENT (SEK M)	2008	2007	%	2008	2007	%	July - June	2007
Net sales	712	୧୧୧	9	1 329	1 256	6	2 603	2 530
Other operating revenue	3	9	-67	12	16	-25	16	20
TOTAL REVENUES	715	୧୧୧	7	1 341	1 272	5	2 619	2 550
OPERATING EXPENSES
Goods for resale	-359	-342	5	-673	-658	2	-1 309	-1 294
Other external costs	-103	-98	5	-208	-190	9	-427	-410
Personnel costs	-165	-142	1 ୧	-315	-277	14	-599	-560
Depreciation of tangible assets	-9	-9	0	-17	-17	0	-37	-37
Impairment of intangible assets	0	0		0	0	-	0	0
EBIT	79	76	4	126	129	-2	247	250
Interest income	2	1	100	5	2	150	13	10
Interest expense	-3	-4	-25	-3	-7	-57	-5	-9
Other financial items	0	0	0	3	10	-70	159	166
PROFIT AFTER FINANCIAL ITEMS	78	73	7	131	135	-3	415	418
lax	-22	-21	5	-36	-39	-8	-68	-70
NET PROFIT FOR THE PERIOD	ર્ટર	52	8	વેદ	૭૮	-1	347	348
NET PROFIT FOR THE PERIOD SPECIFIED AS
Parent Company's shareholders	53	50	6	90	91	-1	339	340
Minority owners	3	2	50	4	5	-20	7	7
Earnings per share before dilution, SEK *	1.72	1.62	6	2.92	2.96	-1	10.99	11.03

*) No dilution is applicable

CONDENSED BALANCE SHEET (SEK M)	30 June 2008	30 June 2007	31 December 2007
ASSETS
Intangible assets	224	182	206
Tangible fixed assets	102	100	97
Financial fixed assets	10	9	10
Deferred tax assets	6	4	2
Inventories	549	544	554
Current receivables	378	311	300
Cash and cash equivalents and short-term investments	61	87	290
Properties held for sale	10	387	22
TOTAL ASSETS	1 340	1 624	1 481
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	744	738	996
Long-term liabilities	50	59	44
Current liabilities	546	827	441
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	1 340	1 624	1 481

		A pril– June		January – June	12 m onths	Full-year
C O N DEN SED C ASH -FLO W STATEMEN T (SEK M)	2008	2007	2008	2007	July - June	2007
C ash flow from operating activities before changes in
w orking capital	37	60	57	107	205	255
C ash flow from changes in w orking capital	-17	30	-19	69	-23	65
C ASH FLO W FRO M O PERATIN G AC TIVITIES	20	90	38	176	182	320
C ash flow from investing activities	-19	-10	-32	-21	437	448
C ash flow from financing activities	-234	-53	-235	-165	-644	-574
C ASH FLO W FO R TH E PERIO D	-233	27	-229	-10	-25	194

C H AN G E IN SH AREH O LDERS'EQU ITY (SEK M)	January— Decem ber
	2008	2007
SH AREH O LDERS'EQU ITY AT TH E BEG IN N IN G O F TH E PERIO D	996	953
Dividends	-347	-318
C urrency effects	0	7
Acquired minority shares,net	0	0
N etprofitforthe period	95	96
SH AREH O LDERS'EQU ITY AT TH E EN D O F TH E PERIO D	744	738
O F W H IC H ,MIN O RITY SH ARE	15	16

	2008		2007				2006
QU ARTERLY DATA	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Totalsales,SEK M	715	626	653	626	666	606	630	608	663
EBIT,SEK M	79	48	43	78	76	53	74	71	37
Profitafterfinancialitems,SEK M	78	53	68	216	73	61	66	65	32
N etprofitforthe period,SEK M	56	39	65	187	52	44	46	46	23
EBIT margin,%	11	8	7	13	11	9	12	12	6
Earnings pershare,SEK	1.72	1.20	2.13	8.90	1.62	1.34	1.53	1.34	0.64

	A pril– June		January-June		12 m onths	Full-year
K EY RATIO S *)	2008	2007	2008	2007	July – June	2007
Return on equity,%	-	-	39.0	22.9	39.0	35.6
Return on totalcapital,%	-	-	28.3	17.3	28.3	27.3
Return on capitalemployed,%	-	-	41.7	24.0	41.7	38.7
Equity/assets ratio,%	-	-	55.6	45.5	55.6	67.3
G ross margin,%	49.6	47.9	49.3	47.6	49.7	48.9
EBIT margin,%	11.0	11.4	9.4	10.2	9.4	9.8
Earnings pershare,SEK	1.72	1.62	2.92	2.96	10.99	11.03
N etassetvalue pershare,SEK	-	-	23.6	23.4	23.6	31.7
N umberofshares atthe end ofthe period	30 868 822	30 868 822	30 868 822	30 868 822	30 868 822	30 868 822
Average numberofshares during the period	30 868 822	30 868 822	30 868 822	30 868 822	30 868 822	30 868 822
N umberofstores in Sw eden/ofw hich w holly
ow ned	-	-	113/94	112/88	-	114/93
N umberofstores in N orw ay/ofw hich w holly ow ned	-	-	42/26	41/23	-	42/25
N umberofstores in Denmark/ofw hich w holly
ow ned	-	-	39/39	39/39	-	38/38

*) Key ratios for returns on equity/capital employed/total capital are calculated on a rolling 12 months basis for the period January – June.

	January - June	Full-year
AVERAGE NUMBER OF EMPLOYEES	2008	2007	2007
Sweden	652	630	637
Norway	229	197	202
Denmark	394	379	382
Parent Company	61	48	50
Group	1 336	1 254	1 271

Financial reports, Parent Company

	April - June		January - June	Full-year
CONDENSED INCOME STATEMENT (SEK M)	2008	2007	2008	2007	2007
Total revenues	30	29	51	63	80
Operating expenses	-41	-27	-72	-59	-104
EBIT	-11	2	-22	4	-23
Net financial items	221	138	227	140	317
Profit after financial items	209	140	205	144	294
PROFIT FOR THE PERIOD	209	140	205	143	265

CONDENSED BALANCE SHEET (SEK M)	30 June, 2008	30 June, 2007	31 December, 2007
Assets
Long-term receivables in Group companies	0	244	0
Fixed assets	274	260	268
Current receivables in Group companies	17	281	188
Other current receivables	74	38	48
Cash and cash equivalents and short-term
investments	252	96	312
Total assets	617	919	816
Shareholders' equity and liabilities
Shareholders' equity	505	378	637
Provisions	3	-	3
Untaxed reserves	86	41	86
Current liabilities in Group companies	3	13	50
Other current liabilities	20	487	41
Total shareholders' equity and liabilities	617	919	816

Definitions ofkey ratios

Return on equity

N etprofitforthe period ,excluding minority shares,as a percentage ofaverage shareholders'equity, excluding minority interest.

Return on totalcapital

Profitafternetfinancialitems plus financialexpenses as a percentage ofaverage totalassets.

C apitalem ployed

Totalassets less non-interest-bearing liabilities and provisions including deferred tax.

Return on capitalem ployed

Profitafternetfinancialitems plus interestexpenses as a percentage ofaverage capitalemployed.

Equity/assets ratio

Shareholders'equity includ ing minority as a percentage oftotalassets.

G ross m argin

N etsales less costs forgoods held forresale as a percentage ofnetsales.

EB IT m argin

EBIT afterdepreciation and amortisation as a percentage ofoperating revenue.

N et asset value per share

Shareholders'equity excluding minority share,in relation to the numberofshares atthe end ofthe period.

Earnings per share

N etprofitforthe period ,excluding minority shares,in relation to the average numberofshares.