Dometic Group

Earnings Release • Feb 9, 2017

REPORT ON THE FOURTH QUARTER 2016

FOURTH QUARTER

• Net sales for the fourth quarter totaled SEK 2,786 million (2,523); an increase of 10%, of which 5% was organic growth.
• Operating profit (EBIT) before items affecting comparability amounted to SEK 210 million (200), representing a margin of 7.5% (7.9%), including rebranding and class action legal cost of SEK 58 million.
• Operating profit (EBIT) amounted to SEK 173 million (183).
• Cash flow for the period totaled SEK 435 million (315). Operating cash flow totaled SEK 352 million (623).
• Profit for the fourth quarter was SEK 302 million (561), including one-off tax income of SEK 175 million (727).
• Earnings per share: SEK 1.02.

FULL YEAR

• Net sales for the January-December 2016 period totaled SEK 12,388 million (11,486); an increase of 8%, of which 7% was organic growth.
• Operating profit (EBIT) before items affecting comparability amounted to SEK 1,621 million (1,412), representing a margin of 13.1% (12.3%), including rebranding and class action legal cost of SEK 77 million.
• Operating profit (EBIT) amounted to SEK 1,573 million (1,436).
• Cash flow for the period totaled SEK 750 million (238). Operating cash flow totaled SEK 1,296 million (1,390).
• Profit for the period was SEK 1,362 million (1,032).
• Earnings per share: SEK 4.60.
• The Board of Directors proposes a cash dividend of SEK 1.85 per share (n/a).

FINANCIAL OVERVIEW (SUMMARY CONSOLIDATED FINANCIAL INFORMATION)

	Q4	Q4	FY	FY
SEK million	2016	2015	2016	2015
Net sales	2,786	2,523	12,388	11,486
EBITDA	250	255	1,871	1,727
% of net sales	9.0%	10.1%	15.1%	15.0%
Operating profit (EBIT)	173	183	1,573	1,436
% of net sales	6.2%	7.3%	12.7%	12.5%
Operating profit (EBIT) before items affecting comparability	210	200	1,621	1,412
% of net sales	7.5%	7.9%	13.1%	12.3%
Profit for the period	302	561	1,362	1,032
Earnings per share, SEK	1.02	1.90	4.60	3.49
Cash flow for the period	435	315	750	238
Operating cash flow⁽¹⁾	352	623	1,296	1,390
Core working capital	2,655	2,104	2,655	2,104
Capital expenditure in fixed assets	-68	-52	-225	-240
RoOC	32%	36%	32%	36%

⁽¹⁾Net cash flow from operations after investments in fixed assets and excluding income tax paid.

CEO comments

ACTIVE FOURTH QUARTER CONCLUDES STRONG 2016

An eventful fourth quarter concluded 2016. Sales increased by 10%, whereof 5% was organic growth. EBIT before i.a.c. increased by 5% to SEK 210 million despite cost items related to rebranding and class action legal fees of SEK 58 million. Cash flow was affected by earlier inventory build-up in Americas and EMEA, to secure deliveries for the seasonal ramp-up in 2017.

EMEA continued its solid performance, with double-digit growth in both RV and CPV. The fourth quarter is seasonally the weakest for the region and lower utilization in the factories affects the result.

In Americas, our RVOEM sales grew by 7%, but was negatively impacted by a combination of market mix, lower market share and fewer customer production days in December than planned. Despite the rebranding and class action legal cost, the margin for the region was in line with that of last year.

APAC reported sales growth of 14%, of which 7% was organic. Our Australian business remained strong in a soft market environment. Retail exhibited 18% growth in the quarter.

During the fourth quarter, we launched the new Dometic visual identity as an important part of our strategic focus 'One Dometic'. We also finalized the previously communicated sale of the seating and chassis components business in the US. EMEA made a small acquisition to strengthen our position in mobile coolers in the region. Finally, we outsourced some specific manufacturing in China, which led to the closure of a small production line. All of these initiatives are the result of active product portfolio management.

2016 was a good year for Dometic. Net sales growth was 8%, whereof 7% was organic. EBIT before i.a.c increased by 15% and the margin improved from 12.3% to 13.1%, despite the extra cost for rebranding, legal activities related to the class action complaint in the US and higher costs relating to logistics in EMEA and Americas. It is encouraging to see that we have reached three out of four of our mid to long-term financial targets.

Throughout the year, we pursued our strategy for profitable growth. Most of our businesses improved both in terms of growth and profitability, based on favorable markets as well as our own initiatives. We have consolidated our positions in many markets, and with the strengthened management team in place this work will intensify in the coming year.

Our outlook remains positive. For 2017, we expect to deliver growth in line with our mid to long-term target of 5% and continue to expand EBIT margin towards our 15% target. We also aim to strengthen our portfolio further through additional acquisitions. Earlier this week, we acquired Oceanair, which will strengthen our presence in the marine market.

Roger Johansson President and CEO

NET SALES (SEK MILLION) OPERATING PROFIT (EBIT) BEFORE I.A.C.

	Q4	Q4	Change (%)		FY	FY	Change (%)
SEK million	2016	2015	Rep.	Adj.⁽¹⁾	2016	2015	Rep.	Adj.⁽¹⁾
Americas	1 256	1 204	4%	-3%	5 749	5 538	4%	1%
EMEA	1 082	927	17%	12%	5 093	4 479	14%	13%
Asia Pacific	448	392	14%	7%	1 546	1 400	10%	9%
Medical division⁽²⁾	-	-	-	-	-	69	-	-
Total net sales	2 786	2 523	10%	4%	12 388	11 486	8%	6%
Americas	102	100	2%	-11%	756	650	16%	12%
EMEA	11	5	103%	-22%	534	400	33%	33%
Asia Pacific	97	95	2%	-4%	331	334	-1%	-2%
Medical division	-	-	-	-	-	28	-	-
Total operating profit (EBIT)⁽³⁾	210	200	5%	-7%	1 621	1 412	15%	13%
Americas	8,1%	8,3%			13,1%	11,7%
EMEA	1,0%	0,6%			10,5%	8,9%
Asia Pacific	21,8%	24,3%			21,4%	23,9%
Medical division	-	-			-	40,6%
Total operating profit %	7,5%	7,9%			13,1%	12,3%
⁽¹⁾Represents change in comparable currency. ⁽²⁾Medical division was divested in Q1-2015. ⁽³⁾Before i.a.c.
FINANCIAL SUMMARY – FOURTH QUARTER						FINANCIAL SUMMARY – FULL YEAR
Net sales in the three months ending December 31, 2016, totaled SEK 2,786 increase of 10% compared with SEK 2,523 million in the same period last year. This is made up of 5% organic growth, 6% currency translation and -1% divestments. Operating profit (EBIT) before i.a.c., totaling SEK 210 million in Q4 2016, displayed a 7% decrease in comparable currency compared with EBIT margin decreased from 7.9% to 7.5%. Items affecting comparability totaled SEK -37 million (-17), consisting of the divestment of the seating and chassis component business SEK 25 million, costs related to the fire in the Filakovo plant of SEK 5 million, SEK 6 million to close down one manufacturing line in China and SEK 1 million Other. Financial items amounted to a net expense of SEK 9 million (539), including SEK 29 million in interest on external bank loans (115) and SEK 2 million for amortization of capitalized long-term financing expenses (168). Other expense items amounted to SEK -21 million (257) and financial income to SEK 1 million (1). Taxes totaled SEK +138 corresponds to -84% (258%) of profit before tax. Current tax amounted to SEK +5 million (-25) and deferred tax to SEK +133 million (+942). Deferred tax income in 2016 is related to recognition of deferred tax on interest expense carryforwards (non-recurring). The deferred tax income in 2015 was related to recognition	million, representing an Q4 million (+917),	2015. The which	Net sales for the 2016 full year totaled SEK 12,388 million, representing an increase of 8% compared with SEK 11,486 million in the same period last year. This is made up of 7% organic growth, 2% currency translation and -1% divestments. Operating profit (EBIT) before i.a.c. totaled SEK 1,621 million in the 2016 full year (1,412). The EBIT margin improved from 12.3% to 13.1%. Items affecting comparability totaled SEK -48 million (24). Financial items amounted to a net expense of SEK 118 million (1,102), including SEK 117 million in interest on external bank loans (627) and SEK 7 million for amortization of capitalized long-term financing expenses (243). Other expense items amounted to SEK 0 million (234) and financial income to SEK 6 million (2). Taxes totaled SEK -93 million corresponds to 6% (-209%) of profit before tax. Current tax amounted to SEK -158 million (-169) and deferred tax to SEK +65 million (+867). The deferred tax income in 2016 is related to recognition of deferred tax on interest expense carryforwards (non-recurring). The deferred tax income in 2015 was related to recognition of deferred tax on tax loss carryforwards (non-recurring). Profit for the period totaled SEK 1,362 million (1,032). Earnings per share amounted to SEK 4.60.					(+698), which
of deferred tax on tax loss carryforwards (non						Operating cash flow of SEK 1,296 million (1,390).
recurring).					Events after the quarter.
Profit for the period totaled SEK 302 million (561).						On January 18, Mattias Nordin left his position as Head of Product Management & Innovation in Dometic's
Earnings per share amounted to SEK 1.02.						Group Management. A recruitment process for a new
Operating cash flow of SEK 352 million (623). The decrease is mainly due to inventory build-up.					Head of PMI has been initiated.
Financial position Leverage in Q4 2016 was 1.7 compared with 2.4 in Q4 2015. At Q3 2015, leverage was 5.1.			furnishings.			On February 7, Dometic acquired Oceanair, a market leading manufacturer of marine blinds, screens and soft

FINANCIAL SUMMARY – FOURTH QUARTER

FINANCIAL SUMMARY – FULL YEAR

Net sales for the 2016 full year totaled SEK 12,388 million, representing an increase of 8% compared with SEK 11,486 million in the same period last year. This is made up of 7% organic growth, 2% currency translation and -1% divestments.

Operating profit (EBIT) before i.a.c. totaled SEK 1,621 million in the 2016 full year (1,412). The EBIT margin improved from 12.3% to 13.1%.

Items affecting comparability totaled SEK -48 million (24).

Financial items amounted to a net expense of SEK 118 million (1,102), including SEK 117 million in interest on external bank loans (627) and SEK 7 million for amortization of capitalized long-term financing expenses (243). Other expense items amounted to SEK 0 million (234) and financial income to SEK 6 million (2).

Taxes totaled SEK -93 million (+698), which corresponds to 6% (-209%) of profit before tax. Current tax amounted to SEK -158 million (-169) and deferred tax to SEK +65 million (+867). The deferred tax income in 2016 is related to recognition of deferred tax on interest expense carryforwards (non-recurring). The deferred tax income in 2015 was related to recognition of deferred tax on tax loss carryforwards (non-recurring).

Events after the quarter.

On January 18, Mattias Nordin left his position as Head of Product Management & Innovation in Dometic's Group Management. A recruitment process for a new Head of PMI has been initiated.

On February 7, Dometic acquired Oceanair, a marketleading manufacturer of marine blinds, screens and soft

AMERICAS

	Q4	Q4	Change (%)		FY	FY	Change (%)
SEK million	2016	2015	Rep.	Adj.⁽¹⁾	2016	2015	Rep.	Adj.⁽¹⁾
Net sales	1 256	1 204	4%	-3%	5 749	5 538	4%	1%
Operating profit (EBIT)⁽²⁾	102	100	2%	-11%	756	650	16%	12%

⁽¹⁾Represents change in comparable currency. ⁽²⁾Before i.a.c

NET SALES AND OPERATING PROFIT (EBIT)

Americas, which accounted for 45% of sales in Q4 2016, reported net sales of SEK 1,256 million. This equals sales growth of 4%, of which 7% related to currency, -2% divestments and organic growth -1%. However, adjusted for the phasedout business, underlying growth was 2%.

Operating profit (EBIT) before i.a.c. of SEK 102 million was 11% lower than last year. The EBIT margin decreased from 8.3% to 8.1%. The deterioration in earnings was mainly due to rebranding and class action legal costs.

Net sales for the 2016 full year amounted to SEK 5,749 million, an increase of 4%, of which 2% was organic, 3% currency translation and -1% related to a divested business. Adjusted for the phasedout business, underlying growth was 4%.

The phased-out business refers to architectural products in the US, for which full-year 2015 net sales amounted to USD 19 million. The divested business relates to the seating and chassis components business, divested in October 2016, with an annual turnover of approximately USD 30 million.

Americas markets

In the US, growth in the volume of RV shipments from OEM manufacturers to dealers is persisting. The past three months displayed 19.3% growth in volumes and a full-year volume of 430,691 units represents growth of 15.1%.

Business highlights

In Americas, Q4 sales to OEMs decreased by 0.8% and aftermarket sales decreased by 9%, in constant currency. Adjusted for the phased-out architectural products and divested business, OEM growth was 5%, while AM declined by 4%.

Sales in the RVOEM business, excluding divestments and architectural products, rose by 7%. The development was negatively impacted by a combination of market mix, lower market share and fewer customer production days than planned in December.

The Marine OEM business reported sales growth, mainly through increased sales of air conditioners.

CPVOEM business sales continued to decline in the fourth quarter, as a result of the soft truck market.

Aftermarket sales decreased, mainly due to lower sales in Lodging, which exhibited a very strong Q4 in 2015. RV, CPV and Retail aftermarket increased, while Marine aftermarket had a softer ending to the year.

EMEA

	Q4	Q4	Change (%)		FY	FY	Change (%)
SEK million	2016	2015	Rep.	Adj.⁽¹⁾	2016	2015	Rep.	Adj.⁽¹⁾
Net sales	1 082	927	17%	12%	5 093	4 479	14%	13%
Operating profit (EBIT)⁽²⁾	11	5	103%	-22%	534	400	33%	33%

⁽¹⁾Represents change in comparable currency. ⁽²⁾Before i.a.c

NET SALES AND OPERATING PROFIT (EBIT)

EMEA, which accounted for 39% of sales in Q4 2016, reported net sales of SEK 1,082 million. This corresponds to a sales increase of 17% compared with Q4 2015, of which 12% was organic.

Operating profit (EBIT) before i.a.c. of SEK 11 million represented a decrease of 22% compared with the previous year. The EBIT margin improved from 0.6% to 1.0%.

Net sales for the full year amounted to SEK 5,093 million; an increase of 14%, of which 13% was organic.

EMEA markets

In the fourth quarter 2016, RV registrations in the larger European markets increased by 2% compared with the same period last year. The largest markets in Europe (Germany, France, Sweden, the Netherlands and Italy) had approximately 103,630 new RV registrations in 2016, corresponding to a full-year increase of 13% compared to 2015.

Heavy truck registrations in the last three months increased by 6% compared with the same period last year.

Business highlights

Fourth quarter sales in EMEA in the OEM channels increased by 11%, while aftermarket channels reported 14% growth, in constant currency.

The RVOEM business area reported solid sales growth in the quarter, driven by the market momentum combined with strong volumes in several product categories.

The Marine OEM business exhibited growth in UK and Italy, while France was stable in the quarter.

Sales in the CPVOEM business showed a slowdown in sales to premium car OEMs, which was offset by growth in sales to truck OEMs.

Aftermarket reported an overall increase in sales, with the most significant growth in CPV, RV and Marine aftermarket. The main contributors to growth were AC service stations, windows, doors and air conditioners.

APAC

Q4	Q4			FY	FY
2016	2015	Rep.	Adj.⁽¹⁾	2016	2015	Rep.	Adj.⁽¹⁾
448	392	14%	7%	1 546	1 400	10%	9%
97	95	2%	-4%	331	334	-1%	-2%
				Change (%)			Change (%)

⁽¹⁾Represents change in comparable currency. ⁽²⁾Before i.a.c

NET SALES AND OPERATING PROFIT (EBIT)

APAC, which accounted for 16% of sales in Q4 2016, reported net sales of SEK 448 million. This corresponds to a sales increase of 14%, of which 7% was organic and 7% related to currency translation.

Operating profit (EBIT) before i.a.c. of SEK 97 million represented a decrease of 4% on last year. The EBIT margin was 21.8% vs. 24.3% in Q4 2015. The margin decreased mainly due to the impact of currency translation and hedging.

Net sales for the 2016 full year amounted to SEK 1,546 million, representing growth of 10%, of which 9% was organic.

APAC markets

Statistics on Australian domestic RV production showed a decrease of 8% over the three-month period ending October, compared with the same period the previous year. YTD October volumes indicate a decline of 4.4%

Business highlights

Sales in the OEM channels for Q4 in APAC increased by 12%, while the aftermarket grew by 3%, in constant currency.

In the RVOEM business, sales showed solid growth, despite a softer market in Australia. Sales to smaller RV markets such as Japan and China increased in the quarter.

The Marine OEM business reported a sales decrease compared to last year, mainly due to a soft commercial sector.

Sales in the CPVOEM business, which comprises only a small part of total APAC sales, increased based on sales of cup holders and inverters.

The aftermarket business continued to report strong development in the fourth quarter, with retail leading the way with 18% growth.

PARENT COMPANY DOMETIC GROUP AB

The Parent Company Dometic Group AB comprises the functions of the Group's head office, such as Group-wide management and administration. The Parent Company invoices its costs to Group companies.

For the fourth quarter 2016, the Parent Company had an operating profit (loss) of SEK 0 million (0), including administrative expenses of SEK 36 million (18) and other operating income of SEK 36 (18), of which the full amount relates to income from Group companies.

Profit (loss) from financial items totaled SEK -131 million (-133), including interest income from Group companies of SEK 26 million (41) and interest expenses to Group companies of SEK 0 million (-1).

Profit (loss) for the fourth quarter amounted to SEK 223 million (124).

The Parent Company's operating profit (loss) for the full year totaled SEK -3 million (-6), including administrative expenses of SEK 130 million (54) and other operating income of SEK 127 million (48), of which the full amount relates to income from Group companies.

Profit (loss) from financial items amounted to SEK -351 million (-115), including interest income from Group companies of SEK 71 million (257), interest expenses to Group companies of SEK - million (-7) and other financial income and expenses of SEK - 422 million (-365).

Profit (loss) for the period amounted to SEK -1 million (136).

For further information, please refer to the Parent Company's condensed financial statements on page 12.

ANNUAL GENERAL MEETING 2017

Dometic Group's Annual General Meeting will be held on Friday April 7, 2017, in Stockholm.

NOMINATION COMMITTEE – ANNUAL GENERAL MEETING 2017

In accordance with the resolution taken by the 2016 AGM, the Nomination Committee ahead of the 2017 AGM has been elected based on the shareholder structure as of September 30, 2016. Further details about the Nomination Committee are available on our website. www.dometic.com

PROPOSED DIVIDEND

For the 2016 full year, the Board of Directors proposes a cash dividend of SEK 1.85 per share (n/a).

Solna, February 9, 2016

Board of Directors

REVIEW

This report has not been audited.

QUARTERLY FINANCIAL STATEMENTS CONSOLIDATED INCOME STATEMENT

	Q4	Q4	FY	FY
SEK million	2016	2015	2016	2015
Net sales	2,786	2,523	12,388	11,486
Cost of goods sold	-1,967	-1,842	-8,463	-8,127
Gross Profit	819	681	3,925	3,359
Sales expenses	-421	-356	-1,651	-1,433
Administrative expenses	-183	-134	-604	-510
Other operating income and expenses	13	25	20	64
Items affecting comparability	-37	-17	-48	24
Amortization of customer relationships	-18	-17	-69	-68
Operating profit	173	183	1,573	1,436
Financial income	1	1	6	2
Financial expenses	-10	-540	-124	-1,104
Loss from financial items	-9	-539	-118	-1,102
Profit before tax	164	-356	1,455	334
Taxes	138	917	-93	698
Profit for the period	302	561	1,362	1,032
Profit for the period attributable to owners of the parent	302	561	1,362	1,032
Earnings per share before and after dilution effects, SEK - Owners of the parent	1.02	1.90	4.60	3.49
Number of shares, million	295.8	295.8	295.8	295.8

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Q4	Q4	FY	FY
SEK million	2016	2015	2016	2015
Profit for the period	302	561	1,362	1,032
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit pension plans, net of tax	-13	16	-16	19
	-13	16	-16	19
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges, net of tax	26	-16	13	-18
Gains/losses from hedges of net investments in foreign
operations, net of tax	-50	-38	-149	-66
Exchange rate differences on translation of foreign operations	289	-7	887	-9
	265	-61	751	-93
Other comprehensive income for the period	252	-45	735	-74
Total comprehensive income for the period	554	516	2,097	958
Total comprehensive income for the period attributable to
owners of the parent	554	516	2,097	958

QUARTERLY FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET

SEK million	Dec 31, 2016	Dec 31, 2015
ASSETS
Non-current assets
Goodwill and trademarks	12,725	11,907
Other intangible assets	1,016	1,058
Tangible assets	1,575	1,567
Deferred tax assets	1,226	1,092
Derivatives	7	34
Other non-current assets	52	46
Total non-current assets	16,601	15,704
Current assets
Inventories	2,637	2,199
Trade receivables	1,041	906
Current tax assets	47	27
Derivatives	57	–
Other current assets	237	179
Prepaid expenses and accrued income	89	111
Cash and cash equivalents	1,599	833
Total current assets	5,707	4,255
TOTAL ASSETS	22,308	19,959
EQUITY AND LIABILITIES
EQUITY	13,977	11,883
LIABILITIES
Non-current liabilities
Liabilities to credit institutions	4,453	4,353
Deferred tax liabilities	593	554
Provisions for pensions	536	476
Other provisions	117	74
Total non-current liabilities	5,699	5,457
Current liabilities
Liabilities to credit institutions	329	462
Trade payables	1,024	1,000
Current tax liabilities	294	207
Advance payments from customers	29	14
Derivatives	52	39
Other provisions	197	243
Other current liabilities	134	174
Accrued expenses and prepaid income	573	480
Total current liabilities	2,632	2,619
TOTAL EQUITY AND LIABILITIES	22,308	19,959

QUARTERLY FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Attributable to owners of the parent
SEK million	Share capital	Other reserves	Retained earnings	Total equity
Opening balance Jan 1, 2015	1	1,097	5,361	6,459
Profit for the period			1,032	1,032
Other comprehensive income
Remeasurements of defined benefit pension plans, net of tax			19	19
Cash flow hedges, net of tax		-18		-18
Gains/losses from hedges of net investments in foreign
operations, net of tax		-66		-66
Exchange rate differences on translation of foreign operations		-9		-9
Total comprehensive income		-93	1,051	958
Transactions with owners
Shareholders´ contribution			4,466	4,466
Total transactions with owners			4,466	4,466
Closing balance Dec 31, 2015	1	1,004	10,878	11,883

	Attributable to owners of the parent
SEK million	Share capital	Other reserves	Retained earnings	Total equity
Opening balance Jan 1, 2016	1	1,004	10,878	11,883
Profit for the period			1,362	1,362
Other comprehensive income
Remeasurements of defined benefit pension plans, net of tax			-16	-16
Cash flow hedges, net of tax		13		13
Gains/losses from hedges of net investments in foreign operations, net of tax		-149		-149
Exchange rate differences on translation of foreign operations		887		887
Total comprehensive income		751	1,346	2,097
Transactions with owners
Costs related to the shareholder´s contribution, net of tax			-3	-3
Total transactions with owners			-3	-3
Closing balance Dec 31, 2016	1	1,755	12,221	13,977

QUARTERLY FINANCIAL STATEMENTS CONSOLIDATED CASH FLOW

	Q4	Q4	FY	FY
SEK million	2016	2015	2016	2015
Cash flow from operations
Operating profit	173	183	1,573	1,436
Adjustment for other non-cash items
Depreciation and amortization	77	72	298	291
Adjustment for result from sale of subsidiaries	–	0	–	-83
Adjustments for other non-cash items	22	27	68	17
Changes in working capital
Changes in inventories	-139	-16	-364	-203
Changes in trade receivables	376	331	-83	-47
Changes in trade payables	-18	115	43	180
Changes in other working capital	-71	-37	-14	39
Income tax paid	-16	-11	-107	-89
Net cash flow from operations	404	664	1,414	1,541
Cash flow from investments
Acquisition of operations	–	-1	–	-13
Investments in fixed assets	-68	-52	-225	-240
Proceeds from sale of fixed assets	109	-2	133	1
Proceeds from sale of subsidiaries	–	–	–	657
Other investing activities	2	-2	–	–
Net cash flow from investments	43	-57	-92	405
Cash flow from financing
Shareholder´s contribution/Paid costs related to the
shareholder´s contribution	–	4,500	-74	4,500
Borrowings from credit institutions	31	4,906	64	4,827
Repayment of loans to credit institutions	0	-9,382	-426	-10,110
Paid interest	-28	-255	-97	-847
Received interest	1	–	3	14
Other financing activities	-16	-61	-42	-92
Net cash flow from financing	-12	-292	-572	-1,708
Cash flow for the period	435	315	750	238
Cash and cash equivalents at beginning of period	1,160	522	833	592
Exchange differences on cash and cash equivalents	4	-4	16	3
Cash and cash equivalents at end of period	1,599	833	1,599	833

QUARTERLY FINANCIAL STATEMENTS PARENT COMPANY INCOME STATEMENT

	Q4	Q4	FY	FY
SEK million	2016	2015	2016	2015
Administrative expenses	-36	-18	-130	-54
Other operating income	36	18	127	48
Operating profit	0	0	-3	-6
Interest income subsidiaries	26	41	71	257
Interest expenses subsidiaries	0	-1	–	-7
Other financial income and expenses	-157	-173	-422	-365
Profit (loss) from financial items	-131	-133	-351	-115
Group contributions	353	293	353	293
Profit (loss) before tax	222	160	-1	172
Taxes	1	-36	0	-36
Profit (loss) for the period	223	124	-1	136

PARENT COMPANY BALANCE SHEET

SEK million	Dec 31, 2016	Dec 31, 2015
ASSETS
Shares in subsidiaries	13,563	13,563
Other non-current assets	17	9
Total non-current assets	13,580	13,572
Current assets	2,745	2,875
TOTAL ASSETS	16,325	16,447
EQUITY	11,579	11,583
LIABILITIES
Provisions	13	9
Non-current liabilities	4,453	4,353
Total non-current liabilities	4,466	4,362
Current liabilities	280	502
TOTAL EQUITY AND LIABILITIES	16,325	16,447

CONDENSED NOTES ASSOCIATED WITH QUARTERLY FINANCIAL STATEMENTS

NOTE 1 - ACCOUNTING PRINCIPLES

Dometic Group AB (publ) applies International Financial Reporting Standards (IFRS), as adopted by the EU. This consolidated Interim Financial Report has been prepared in accordance with IAS 34 'Interim Financial Reporting'. The Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities, issued by the Swedish Financial Reporting Board, have been applied for the Parent Company.

The accounting principles applied correspond to those described in the 2015 Annual Report.

There are no changes to Dometic Group's accounting and valuation principles compared with the accounting and valuation principles described in Notes 2 and 4 of the 2015 Annual Report.

For a detailed description of the accounting and valuation policies applied by the Group, see Notes 1, 2 and 4 of the 2015 Annual Report. The Annual Report is available at www.dometic.com, under Investors.

Note 2 – RISKS AND UNCERTAINTIES

Dometic Group is a global company selling its products in almost 100 countries, and as such is exposed to a number of commercial and financial risks. Accordingly, risk management is an important process for Dometic Group in its efforts to achieve established targets.

Dometic Group is subject to transaction risks at the time of purchasing and selling, as well as when conducting financial transactions. Transaction exposure is primarily related to the currencies EUR, USD and AUD. As the majority of the Group's profit is generated outside Sweden, the Group is also exposed to translational risks in all the major currencies.

Efficient risk management is a continual process conducted within the framework of business control, and is part of the ongoing review of operations and forward-looking assessment of operations.

In the preparation of financial reports, the Board of Directors and Group management are required to make estimates and judgments. These estimates and judgments impact the income statement and balance sheet, as well as the disclosures. The actual outcome may differ from these estimates and judgments under different circumstances and conditions.

Dometic Group's future risk exposure is assumed not to deviate from the inherent exposure associated with Dometic Group's ongoing business operations. For a more indepth analysis of risks, please refer to Dometic Group's 2015 Annual Report.

NOTE 3 – FINANCIAL INSTRUMENTS

Dometic Group uses interest rate swaps to hedge senior facility term loans to move from a floating interest rate to a fixed interest rate. The Group also uses currency forward agreements to hedge part of its cash flow exposure. Valuation principles and principles for hedge accounting, as described in Note 3 of the 2015 Annual Report, have been applied throughout the reporting period.

The fair values of Dometic Group's derivative assets and liabilities were SEK 64 million (Q4 2015: SEK 34 million) and SEK 52 million, (Q4 2015: SEK 39 million).

The value of derivatives is based on published prices in an active market. No transfers between levels of the fair value hierarchy have occurred during the period.

For financial assets and liabilities other than derivatives, fair value is assumed to be equal to the carrying amount.

NOTE 3 – FINANCIAL INSTRUMENTS

Dec 31, 2016

	Balance sheet carrying amount	Financial instruments at amortized cost	Financial instruments at fair value	Derivatives used for hedging
Per category
Derivatives	64	–	1	63
Financial assets	2,929	2,929	–	–
Total financial assets	2,993	2,929	1	63
Derivatives	52	–	–	52
Financial liabilities	5,940	5,940	–	–
Total financial liabilities	5,992	5,940	–	52

NOTE 4 – SEGMENT INFORMATION

	Q4	Q4	FY	FY
SEK million	2016	2015	2016	2015
Net sales, external
Americas	1,256	1,204	5,749	5,538
EMEA	1,082	927	5,093	4,548
Asia Pacific	448	392	1,546	1,400
Total net sales, external	2,786	2,523	12,388	11,486
Operating profit (EBIT)
Americas	76	71	698	598
EMEA	6	16	550	502
Asia Pacific	91	96	325	336
Total operating profit (EBIT)	173	183	1,573	1,436
Financial income	1	1	6	2
Financial expenses	-10	-540	-124	-1,104
Taxes	138	917	-93	698
Profit for the period	302	561	1,362	1,032

Segment performance is primarily assessed based on sales and operating profit. Information regarding income for each region is based on where customers are located. Management followup is based on the integrated result in each segment. For further information, please refer to Note 5 of the 2015 Annual Report.

NOTE 5 – TRANSACTIONS WITH RELATED PARTIES

No transactions between Dometic Group and related parties that have significantly affected the company's position and earnings took place during the fourth quarter 2016.

NOTE 6 – ACQUISITONS AND DIVESTMENTS

On October 27, it was announced that Dometic will divest the seating and chassis component business of its subsidiary Atwood to Lippert Components.

On December 22, it was announced that Dometic will acquire the assets of IPV, a Germany-based aftermarket provider of coolers and other outdoor products.

NOTE 7 – SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

On January 18, Mattias Nordin left his position as Head of PMI in Dometic's Group Management.

On February 7, Dometic acquired Oceanair, a market-leading manufacturer of marine blinds, screens and soft furnishings.

DEFINITIONS AND KEY RATIOS

Operating profit (EBIT)

Operating profit; earnings before financial items and taxes.

Operating profit (EBIT) margin

Operating profit divided by net sales.

EBITDA*

Earnings before Interest, Taxes, Depreciation and Amortization.

EBITDA Margin*

EBITDA divided by net sales.

EPS – Earnings per share

Net profit for the period divided by average number of shares. NOTE! Average number of shares equals actual number of shares as the company was listed on November 25, 2015.

Capital expenditure

Expenses related to the purchase of tangible and intangible assets.

Core working capital*

Consists of inventories and trade receivables less trade payables.

Working capital

Core working capital plus other current assets less other current liabilities and provisions relating to operations.

Operating capital excluding goodwill and trademark

Interest-bearing debt plus equity less cash and cash equivalents, excluding goodwill and trademarks.

Operating cash flow*

EBITDA +/- change in working capital excluding paid tax, after capital expenditure.

Organic growth*

Sales growth excluding acquisitions/divestments and currency translation effects. Quarters calculated at comparable currency, applying latest period average rate.

RoOC – Return on Operating Capital*

Operating profit (EBIT) divided by operating capital. Based on the operating profit (EBIT) for the four previous quarters, divided by the average operating capital for the previous four quarters, excluding goodwill and trademarks for the previous quarters.

*Reconciliation of non-IFRS measures to IFRS

Dometic Group presents some financial measures in this interim report, which are not defined by IFRS. The Company believes that these measures provide valuable additional information to investors and management for evaluating the Company's financial performance, financial position and trends in our operations. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. These non-IFRS measures should not be considered as substitutes for financial reporting measures prepared in accordance with IFRS. See Dometic's website www.dometic.com for the detailed reconciliation.

I.A.C. – Items Affecting Comparability

Represents income and expenses related to non-recurring events, occurring on an irregular basis and affecting comparability between the periods.

Interest-bearing debt

Liabilities to credit institutions plus liabilities to related parties plus derivative financial liabilities plus provisions for pensions.

Leverage*

Net debt excluding pensions and accrued interest in relation to EBITDA.

Net debt*

Total borrowings including pensions and accrued interest less cash and cash equivalents.

OCI

Other comprehensive income.

RV

Recreational Vehicles.

CPV

Commercial and Passenger Vehicles.

OEM

Original Equipment Manufacturers.

AM

Aftermarket.

Q4 2016

September to December 2016 for Income Statement.

Q4 2015

September to December 2015 for Income Statement.

FY 2016

Financial Year ended December 31, 2016.

FY 2015

Financial Year ended December 31, 2015.

PRESENTATION OF THE INTERIM REPORT

Analysts and media are invited to participate in a telephone conference on February 9, 2017, at 10.00 (CET), during which President and CEO, Roger Johansson and CFO, Per-Arne Blomquist, will present the report and answer questions. To participate in the webcast/telephone conference, please dial in five minutes prior to the start of the conference call:

Sweden:	+ 46 8 566 42 666
UK:	+ 44 203 008 98 17
US:	+ 1 855 831 59 48

Webcast URL and presentation are available at www.dometic.com

FOR FURTHER INFORMATION, PLEASE CONTACT

Investor Relations Erika Ståhl Phone: +46 8 501 025 24

FINANCIAL CALENDAR

April 7, 2017 – Annual General Meeting 2017

April 24, 2017 – Interim report Q1 2017

July 18, 2017 – Interim report Q2 2017

October 24, 2017 – Interim report Q3 2017

ANNUAL GENERAL MEETING

The 2017 AGM will be held in Stockholm on April 7, 2017, at Meeting Room, Alströmergatan 20.

For more details regarding the AGM, please refer to www.dometic.com

The Dometic Group's Annual Report 2016 will be available at www.dometic.com on March 17, 2017.

This information is information that Dometic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 CET on February 9, 2017.

CONTACT DETAILS

Dometic Group AB (publ)

Hemvärnsgatan 15 SE-171 54 Solna, Sweden Phone: +46 8 501 025 00 www.dometic.com

Corporate registration number 556829-4390

ABOUT DOMETIC

Dometic is a global market leader in branded solutions for mobile living in the areas of Climate, Hygiene & Sanitation and Food & Beverage. Dometic operates in the Americas, EMEA and Asia Pacific, providing products for use in recreational vehicles, trucks and premium cars, pleasure and workboats, and for a variety of other uses. Dometic offers products and solutions that enrich people's experiences away from home, whether in a motorhome, caravan, boat or truck. Our motivation is to create smart and reliable products with outstanding design. We operate 22 manufacturing/assembly sites in nine countries, sell our products in approximately 100 countries and manufacture approximately 85% of products sold in-house. We have a global distribution and dealer network in place to serve the aftermarket. Dometic employs approximately 6,500 people worldwide, had net sales of SEK 12.4 billion in 2016 and is headquartered in Solna, Sweden.

This document is a translation of the Swedish version of the interim report. In the event of any discrepancy, the Swedish wording shall prevail.