Bilia — M&A Activity 2016

Nov 8, 2016

Press release

Bilia terminates distribution agreements with Hyundai in Sweden

As of today, Bilia has terminated its distribution agreements with Hyundai in Sweden. The reason for the decision is that Bilia's Hyundai operation has been loss-making for several years now. Hyundai has lost market share steadily for the past few years, and the brand's position on the Swedish market has been weakened.

Hyundai is represented at four Bilia facilities in Stockholm, one in Eskilstuna and one in Köping. The operation has an annual turnover of about SEK 200 M, accounting for about 0.8 per cent of total Group turnover. The period of notice of termination is 2 years, and turnover is expected to decline gradually during this period, ceasing entirely by the end of 2018.

This decision is expected to have a marginal positive impact on Bilia's earnings per share. It is estimated that tied-up capital will decrease by about SEK 20 M during the period of notice of termination.

Gothenburg, 8 November 2016

Bilia AB (publ)

For further information, please contact Per Avander, Managing Director and CEO, or Gunnar Blomkvist, CFO, Bilia AB, Tel. +46 31 709 55 00.

The above information is disclosed in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published on 8 November 2016, at 14:00.

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Bilia AB Box 9003 SE-400 91 Göteborg www.bilia.com

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