Bergman & Beving

Interim / Quarterly Report • Nov 6, 2014

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 – 6 MONTHS 1 April-30 September 2014

• Revenue amounted to MSEK 3,882 (3,734).
• Operating profit rose by 55 percent to MSEK 235 (152).
• Profit after net financial items increased to MSEK 212 (122).
• Profit after taxes rose by 77 percent to MSEK 159 (90).
• Earnings per share totalled SEK 5.65 (3.20).
• The return on equity for the most recent 12-month period was 13 percent (13).
• The equity/assets ratio at the end of the reporting period was 44 percent (42).

Second quarter (1 July-30 September 2014)

• Revenue for comparable units, measured in local currency and adjusted for the number of trading days, rose by 3 percent during the quarter compared with the year-earlier period.
• Operating profit amounted to MSEK 130 (87) during the quarter.

	QUARTER			REPORTING PERIOD			FULL-YEAR
		3 MONTHS ENDING 30 SEP		6 MONTHS ENDING 30 SEP		12 MONTHS ENDING 30 SEP
	2014	2013	Change	2014	2013	Change	2014	2013	Change
Revenue, MSEK	1,851	1,769	+5%	3,882	3,734	+4%	7,796	7,573	+3%
Operating profit, MSEK	130	87	+49%	235	152	+55%	423	348	+22%
of which, non-recurring items	–	–		–	–		–	+51
Profit after net financial items, MSEK	120	72	+67%	212	122	+74%	376	282	+33%
Net profit for the period (after taxes), MSEK	90	53	+70%	159	90	+77%	283	273	+4%
Earnings per share, SEK	3.20	1.90	+68%	5.65	3.20	+77%	10.05	9.70	+4%
Operating margin	7.0%	4.9%		6.1%	4.1%		5.4%	4.6%
Profit margin	6.5%	4.1%		5.5%	3.3%		4.8%	3.7%
Return on equity							13%	13%
Equity per share, SEK				80.35	75.30	+7%
Equity/assets ratio				44%	42%
Number of employees at the end of the
period				2,667	2,718	–2%

B&B TOOLS IN SUMMARY

PRESIDENT'S STATEMENT

The second quarter of the financial year was characterised by slightly higher sales volumes for most of our units. Combined with higher contribution ratios, this sales trend resulted in a 50-percent increase in operating profit compared with the yearearlier period – with a strong earnings trend reported by both our Business Areas and TOOLS / Momentum. TOOLS Sweden continued to report positive earnings for the quarter.

The Group's profitability, measured as operating profit in relation to working capital (P/WC), continued to develop favourably and amounted to 25 percent (19) for the most recent 12-month period.

Stockholm, November 2014

Ulf Lilius President & CEO

PROFIT AND REVENUE

Profit

The B&B TOOLS Group's operating profit for the reporting period rose by 55 percent to MSEK 235 (152). Operating profit was charged with depreciation and impairment losses of MSEK –13 (–19) on tangible non-current assets and amortisation and impairment losses of MSEK –1 (–3) on intangible non-current assets. Exchange-rate translation effects had a net impact of MSEK +3 (–5) on recognised operating profit for the period.

The operating margin for the period increased to 6.1 percent (4.1).

Profit after net financial items totalled MSEK 212 (122). Net financial items amounted to MSEK –23 (–30). The profit margin was 5.5 percent (3.3).

Profit after taxes totalled MSEK 159 (90). Earnings per share amounted to SEK 5.65 (3.20).

Revenue

Revenue for the reporting period totalled MSEK 3,882 (3,734). Exchange-rate translation effects had an impact of MSEK +37 (–62) on revenue.

Revenue for comparable units, measured in local currency and adjusted for the number of trading days, rose by approximately 4 percent during the full reporting period and by approximately 3 percent during the second quarter (July-September).

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 (6 MOS.)		FULL-YEAR (12 MOS.)
	JUL-SEP		APR-SEP		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Revenue	1,851	1,769	3,882	3,734	7,796	7,648
Operating profit	130	87	235	152	423	340
Operating margin	7.0%	4.9%	6.1%	4.1%	5.4%	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, decreased by a total of –1 percent during the reporting period.

Facing a continued cautious market, revenue for TOOLS Sweden remained largely unchanged during the quarter (adjusted for the number of trading days in this year compared with the preceding year). At the same time, initiatives implemented to increase efficiency have yielded results and the unit reported an operating profit for the second consecutive quarter. Measured in local currency and adjusted for the number of trading days, revenue for TOOLS Norway also remained unchanged during the quarter, while operating profit rose by 30 percent year-on-year.

Despite a continued cautious market, TOOLS Finland increased its revenue by approximately 3 percent during the quarter (measured in local currency and adjusted for the number of trading days) and its operating profit by MSEK 4. Momentum increased its revenue by approximately 1 percent during the quarter (measured in local currency and adjusted for the number of

TOOLS / MOMENTUM

		QUARTER (3 MOS.)
MSEK	REVENUE JUL-SEP 2014	2013	OPERATING PROFIT JUL-SEP 2014	2013	OPERATING MARGIN JUL-SEP 2014 2013
TOOLS Sweden	419	421	5	–10	1.2%	–2.4%
TOOLS Norway	383	376	25	19	6.5%	5.1%
TOOLS Finland	181	166	2	–2	1.1%	–1.2%
Momentum	223	220	26	28	11.7%	12.7%
Eliminations	–12	–11	0	1	–	–
TOTAL	1,194	1,172	58	36	4.9%	3.1%

REPORTING PERIOD (6 MOS.)

	REVENUE APR-SEP		OPERATING PROFIT APR-SEP		OPERATING MARGIN APR-SEP
MSEK	2014	2013	2014	2013	2014	2013
TOOLS Sweden	911	913	5	–25	0.5%	–2.7%
TOOLS Norway	786	795	42	36	5.3%	4.5%
TOOLS Finland	371	349	3	0	0.8%	0.0%
Momentum	464	471	55	59	11.9%	12.5%
Eliminations	–25	–22	0	–1	–	–
TOTAL	2,507	2,506	105	69	4.2%	2.8%

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
TOOLS Sweden	1,876	1,878	–15	–45	–0.8%	–2.4%
TOOLS Norway	1,602	1,611	74	68	4.6%	4.2%
TOOLS Finland	723	701	5	2	0.7%	0.3%
Momentum	944	951	116	120	12.3%	12.6%
Eliminations	–46	–43	1	0	–	–
TOTAL	5,099	5,098	181	145	3.5%	2.8%

trading days) and reported an operating margin of approximately 12 percent.

BUSINESS AREAS

	QUARTER (3 MOS.)
MSEK	REVENUE JUL-SEP 2014	2013	OPERATING PROFIT JUL-SEP 2014	2013	OPERATING MARGIN JUL-SEP 2014 2013
Luna	271	262	30	21	11.1%	8.0%
Skydda	288	260	24	18	8.3%	6.9%
ESSVE	192	188	18	11	9.4%	5.9%
Grunda	124	116	4	3	3.2%	2.6%
Gigant	90	81	3	–2	3.3%	–2.5%
Eliminations	–5	–4	1	0	–	–
TOTAL	960	903	80	51	8.3%	5.6%

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 for the Group's business areas, measured in local currency, increased by a total of 5 percent during the reporting period.

BUSINESS AREAS – cont.

REPORTING PERIOD (6 MOS.)
	REVENUE APR-SEP		OPERATING PROFIT APR-SEP		OPERATING MARGIN APR-SEP
MSEK	2014	2013	2014	2013	2014	2013
Luna	540	525	51	37	9.4%	7.0%
Skydda	614	553	51	37	8.3%	6.7%
ESSVE	407	378	41	20	10.1%	5.3%
Grunda	246	239	5	4	2.0%	1.7%
Gigant	190	179	6	–6	3.2%	–3.4%
Eliminations	–8	–4	0	0	–	–
TOTAL	1,989	1,870	154	92	7.7%	4.9%

		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	1,086	1,071	98	84	9.0%	7.8%
Skydda	1,229	1,168	100	86	8.1%	7.4%
ESSVE	796	767	64	43	8.0%	5.6%
Grunda	491	484	11	10	2.2%	2.1%
Gigant	401	390	13	1	3.2%	0.3%
Eliminations	–13	–9	–1	–1	–	–
TOTAL	3,990	3,871	285	223	7.1%	5.8%

The revenue and earnings trend for the business areas remained positive during the quarter – with strong growth attributable to a number of customers, particularly in the area of construction materials. Revenue for Skydda rose by 9 percent (measured in local currency and adjusted for the number of trading days) and operating profit by 33 percent.

The operating margin for Luna continued to increase during the quarter (to 11.1 percent). ESSVE increased its operating profit by approximately 64 percent, while Grunda also reported higher operating profit. Revenue for Gigant rose by 11 percent during the quarter (measured in local currency and adjusted for the number of trading days) and operating profit by MSEK 5 (from MSEK –2 to MSEK +3).

Group-wide and eliminations

An operating loss of MSEK –18 (–1) was reported for "Group-wide" for the reporting period. Capital gains and losses pertaining to the sale of properties during the reporting period had an adverse impact of approximately MSEK –5, net, on operating profit.

The Parent Company's revenue amounted to MSEK 15 (19) and profit after net financial items to MSEK 202 (433). These results include Group contributions, intra-Group dividends and other corresponding items totalling MSEK 172 (390).

Eliminations for intra-Group inventory gains had an impact of MSEK –6 (–8) 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 capital*), increased to 25 percent (19) for the most recent 12-month period. The return on capital employed for the corresponding period was 12 percent (10) and the return on equity was 13 percent (13).

Cash flow from operating activities before changes in working capital for the reporting period totalled MSEK 221 (99). Funds tied up in working capital increased by MSEK 121. During the period, the Group's inventories increased by MSEK 98 and operating receivables by MSEK 1. Operating liabilities declined by MSEK 22. Accordingly, cash flow from operating activities for the period amounted to MSEK 100 (127). The inventories have increased during the second quarter due to seasonal variations and the growth in revenue primarily in Skydda and ESSVE.

Cash flow for the period was also adversely impacted in a net amount of MSEK –24 (–19) by the acquisition and sale of tangible non-current assets. During the reporting period, 16 Group properties in Sweden and Finland were disposed of. These property sales had a marginal negative impact on earnings per share and the disposals had a positive impact of MSEK 79 on cash flow.

The Group's operational net loan liability at the end of the reporting period amounted to MSEK 764 (901). Interest-bearing liabilities totalled MSEK 825 (984), excluding expensed pension obligations of MSEK 509 (398). Liabilities to credit institutions amounted to MSEK 767 (905), net. Combined cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 468 (379).

The equity/assets ratio at the end of the reporting period was 44 percent, compared with 43 percent at the beginning of the financial year.

Equity per share totalled SEK 80.35 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 80.20 at the end of the reporting period, compared with SEK 78.40 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 2,667, compared with 2,655 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:

SHARE STRUCTURE

CLASS OF SHARE	AS OF 30 SEPTEMBER 2014
Class A shares	1,066,468
Class B shares	27,369,948
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 30 September 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 secure the Company's obligations in the two call option programmes issued to senior management in the Group in September 2013 and September 2014.

Following a resolution passed by the Annual General Meeting in August 2014, 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 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. The call options issued under this programme has not resulted in any dilution effect as of 30 September 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.

The share price on 30 September 2014 amounted to SEK 141.75. For more information about the dilution effect of the 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.

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.

AFFIRMATION

The Board of Directors and the President & CEO deem that this Semi-Annual Report provides a true and fair overview of the operations, position and earnings of the Parent Company and the Group, and that it describes the significant risks and uncertainty factors to which the Parent Company and the companies within the Group are exposed.

Stockholm, 6 November 2014

Anders Börjesson Tom Hedelius Chairman Vice Chairman

Roger Bergqvist Charlotte Hansson Joakim Rubin Director Director Director

Gunilla Spongh Lillemor Svensson Anette Swanemar

Director Director – Employee Representative Director – Employee Representative

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 (6 MOS.)		FULL-YEAR (12 MOS.)
MSEK	JUL-SEP 2014	2013	APR-SEP 2014	2013	ROLLING 12 MOS.	2013/ 2014
TOOLS / Momentum	1,194	1,172	2,507	2,506	5,099	5,098
Business Areas	960	903	1,989	1,870	3,990	3,871
Group-wide	154	163	320	331	651	662
Eliminations	–457	–469	–934	–973	–1,944	–1,983
The B&B TOOLS Group	1,851	1,769	3,882	3,734	7,796	7,648

REVENUE BY QUARTER		2014/2015
MSEK	Q2	Q1	Q4	Q3	Q2	2013/2014 Q1
TOOLS / Momentum	1,194	1,313	1,277	1,315	1,172	1,334
Business Areas	960	1,029	1,021	980	903	967
Group-wide	154	166	164	167	163	168
Eliminations	–457	–477	–502	–508	–469	–504
The B&B TOOLS Group	1,851	2,031	1,960	1,954	1,769	1,965

OPERATING PROFIT BY OPERATING SEGMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (6 MOS.)		FULL-YEAR (12 MOS.)
	JUL-SEP		APR-SEP		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
TOOLS / Momentum	58	36	105	69	181	145
Business Areas	80	51	154	92	285	223
Group-wide	–5	5	–18	–1	–31	–14
Eliminations	–3	–5	–6	–8	–12	–14
The B&B TOOLS Group	130	87	235	152	423	340

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

GROUP SUMMARY

INCOME STATEMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (6 MOS.) FULL-YEAR (12 MOS.)
	JUL-SEP		APR-SEP		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Revenue	1,851	1,769	3,882	3,734	7,796	7,648
Shares in profit of associated companies	0	0	0	0	0	0
Other operating income	15	2	17	2	30	15
Total operating revenue	1,866	1,771	3,899	3,736	7,826	7,663
Goods for resale	–1,085	–1,050	–2,278	–2,218	–4,605	–4,545
Personnel costs	–382	–358	–821	–795	–1,659	–1,633
Depreciation, amortisation, impairment losses and reversal of impairment losses	–7	–11	–14	–22	–37	–45
Other operating expenses	–262	–265	–551	–549	–1,102	–1,100
Total operating expenses	–1,736	–1,684	–3,664	–3,584	–7,403	–7,323
Operating profit	130	87	235	152	423	340
Financial income and expenses	–10	–15	–23	–30	–47	–54
Profit after net financial items	120	72	212	122	376	286
Taxes	–30	–19	–53	–32	–93	–72
Net profit for the period	90	53	159	90	283	214
Of which, attributable to: Parent Company shareholders	90	53	159	90	283	214
Earnings per share, SEK – Before dilution	3.20	1.90	5.65	3.20	10.05	7.60
– After dilution	3.20	1.90	5.65	3.20	10.05	7.60

STATEMENT OF COMPREHENSIVE INCOME

	QUARTER (3 MOS.)			REPORTING PERIOD (6 MOS) FULL-YEAR (12 MOS.)
MSEK	2014	JUL-SEP 2013	APR-SEP 2014	2013	ROLLING 12 MOS.	2013/ 2014
Net profit for the period	90	53	159	90	283	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	–38	66	–56	65	–115	6
Tax attributable to components that will not be reclassified	8	–14	12	–14	25	–1
	–30	52	–44	51	–90	5
Components that will be reclassified to net profit for the year
Translation differences	19	–19	34	–9	45	2
Effects of hedge accounting	0	0	1	1	0	0
Tax attributable to components that may be reclassified	0	0	0	–1	0	–1
	19	–19	35	–9	45	1
Other comprehensive income for the period	–11	33	–9	42	–45	6
Comprehensive income for the period	79	86	150	132	238	220
Of which, attributable to: Parent Company shareholders	79	86	150	132	238	220

THE B&B TOOLS GROUP INTERIM REPORT – 6 MONTHS

1 APRIL – 30 SEPTEMBER 2014

BALANCE SHEET

MSEK	30 SEP 2014	30 SEP 2013	31 MAR 2014
ASSETS
Intangible non-current assets	1,796	1,788	1,792
Tangible non-current assets	134	251	208
Financial non-current assets, pension funds	2	3	2
Financial non-current assets, other interest-bearing	3	4	3
Shares in associated companies	11	11	11
Deferred tax assets	116	115	102
Inventories	1,531	1,380	1,414
Accounts receivable	1,261	1,163	1,299
Other current receivables	270	259	210
Cash and cash equivalents	58	79	53
Total assets	5,182	5,053	5,094
EQUITY AND LIABILITIES
Equity	2,257	2,115	2,203
Non-current interest-bearing liabilities	550	809	400
Pension provisions	509	398	451
Other non-current liabilities and provisions	80	121	82
Current interest-bearing liabilities	275	175	475
Accounts payable	851	801	885
Other current liabilities	660	634	598
Total equity and liabilities	5,182	5,053	5,094
Specifications
Inventories plus accounts receivable less accounts payable	1,941	1,742	1,828
Other working capital items, net	–390	–375	–388
Working capital	1,551	1,367	1,440
Operational net loan liability *	764	901	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	30 SEP 2014	30 SEP 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	150	132	220
Closing equity	2,257	2,115	2,203

CASH-FLOW STATEMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (6 MOS.)		FULL-YEAR (12 MOS.)
		JUL-SEP	APR-SEP		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Operating activities before changes in working capital	118	80	221	99	292	170
Changes in working capital	–112	15	–121	28	–109	40
Cash flow from operating activities	6	95	100	127	183	210
Acquisition of intangible and tangible non-current assets	–14	–12	–24	–20	–52	–48
Sales of intangible and tangible non-current assets	0	1	0	1	0	1
Sales of subsidiaries and other business units	2	–	79	–	121	42
Cash flow before financing	–6	84	155	108	252	205
Financing activities	–5	–87	–154	–243	–278	–367
Cash flow for the period	–11	–3	1	–135	–26	–162
Cash and cash equivalents at the beginning of the period	68	84	53	214	79	214
Exchange-rate differences in cash and cash equivalents	1	–2	4	0	5	1
Cash and cash equivalents at the end of the period	58	79	58	79	58	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-SEP	INCOME FROM INTERNAL CUSTOMERS APR-SEP	TOTAL REVENUE APR-SEP				OPERATING PROFIT APR-SEP
MSEK	2014	2013	2014	2013	2014	2013	2014	2013
TOOLS / Momentum	2,503	2,480	4	26	2,507	2,506	105	69
Business Areas	1,375	1,251	614	619	1,989	1,870	154	92
Total operating segment	3,878	3,731	618	645	4,496	4,376	259	161
Group-wide	4	3	316	328	320	331	–18	–1
Eliminations	–	–	–934	–973	–934	–973	–6	–8
The B&B TOOLS Group	3,882	3,734	0	0	3,882	3,734	235	152

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. Infrastructure operations comprise IT and 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 (6 MOS.)		FULL-YEAR (12 MOS.)
	JUL-SEP		APR-SEP		ROLLING	2013/
SEK	2014	2013	2014	2013	12 MOS.	2014
Earnings before dilution	3.20	1.90	5.65	3.20	10.05	7.60
Earnings after dilution	3.20	1.90	5.65	3.20	10.05	7.60
Equity, at the end of the period			80.35	75.30		78.40
Equity after dilution, at the end of the period			80.20	75.30		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	28,152	28,096	28,143	28,096	28,129	28,096

1	Dilution effect based on the issued call options on repurchased Class B shares as of 30 September 2014.
	3 months	0.2%	6 months	0.2%	Rolling 12 months	0.1%	2013/2014	0.0%

PARENT COMPANY SUMMARY

INCOME STATEMENT

	QUARTER (3 MOS.)		REPORTING PERIOD (6 MOS.)	FULL-YEAR (12 MOS.)
	JUL-SEP		APR-SEP		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Revenue	8	10	15	19	31	35
Other operating income	–1	–	0	–	0	0
Total operating revenue	7	10	15	19	31	35
Operating expenses	–12	–9	–22	–22	–37	–37
Operating profit	–5	1	–7	–3	–6	–2
Financial income and expenses	191	413	209	436	261	488
Profit after net financial items	186	414	202	433	255	486
Appropriations	–	–	–	–	36	36
Profit before taxes	186	414	202	433	291	522
Taxes	–2	–6	–6	–10	–26	–30
Net profit for the period	184	408	196	423	265	492

STATEMENT OF COMPREHENSIVE INCOME

	QUARTER (3 MOS.)		REPORTING PERIOD (6 MOS.)	FULL-YEAR (12 MOS.)
	JUL-SEP		APR-SEP		ROLLING	2013/
MSEK	2014	2013	2014	2013	12 MOS.	2014
Net profit for the period	184	408	196	423	265	492
OTHER COMPREHENSIVE INCOME FOR THE PERIOD
Effects of hedge accounting	0	1	1	3	–1	1
Taxes attributable to other comprehensive income	0	0	0	–1	0	–1
Other comprehensive income for the period	0	1	1	2	–1	0
Comprehensive income for the period	184	409	197	425	264	492

BALANCE SHEET

MSEK	30 SEP 2014	30 SEP 2013	31 MAR 2014
ASSETS
Intangible non-current assets	–	1	0
Tangible non-current assets	2	2	2
Financial non-current assets	3,714	3,936	3,856
Current receivables	102	22	267
Cash and cash equivalents	0	31	–
Total assets	3,818	3,992	4,125
EQUITY, PROVISIONS AND LIABILITIES
Equity	1,772	1,604	1,671
Untaxed reserves	192	201	192
Provisions	48	49	48
Non-current liabilities	694	997	600
Current liabilities	1,112	1,141	1,614
Total equity, provisions and liabilities	3,818	3,992	4,125

COMPILATION OF KEY FINANCIAL RATIOS

KEY FINANCIAL RATIOS

	12 MONTHS ENDING
	30 SEP 2014	31 MAR 2014	31 MAR 2013	31 MAR 2012
Revenue, MSEK	7,796	7,648	7,666	8,201
Operating profit, MSEK	423	340	289	409
Profit after net financial items, MSEK	376	286	216	318
Net profit for the period, MSEK	283	214	222	227
Operating margin	5.4%	4.4%	3.8%	5.0%
Profit margin	4.8%	3.7%	2.8%	3.9%
Return on capital employed	12%	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	764	819	914	1,414
Equity (closing balance), MSEK	2,257	2,203	2,065	1,950
Equity/assets ratio	44%	43%	39%	35%
Operational net debt/equity ratio	0.34	0.37	0.44	0.73
Number of employees at the end of the period	2,667	2,655	2,780	2,880

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

KEY PER-SHARE DATA

	12 MONTHS ENDING
	30 SEP 2014 31 MAR 2014 31 MAR 2013 31 MAR 2012
Earnings, SEK	10.05	7.60	7.90	8.10
Earnings after dilution, SEK	10.05	7.60	7.90	8.10
Cash flow, SEK	6.50	7.45	9.30	4.05
Equity, SEK	80.35	78.40	73.50	69.40
Share price, SEK	141.75	119.00	85.00	59.25

Dates for forthcoming financial information

The Interim Report for 1 April – 31 December 2014 will be presented on 10 February 2015. The Financial Report for 1 April 2014 – 31 March 2015 will be presented on 12 May 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 OMX Stockholm. The information was submitted for publication on 6 November 2014 at 10:45 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