Dometic Group

Quarterly Report • Apr 24, 2017

REPORT ON THE FIRST QUARTER 2017

FIRST QUARTER

• Net sales for the first quarter totaled SEK 3,443 million (2,999); an increase of 15%, of which 11% was organic growth.
• Operating profit (EBIT) before items affecting comparability amounted to SEK 418 million (400), representing a margin of 12.1% (13.3), including SEK 46 million of rebranding cost, class action legal costs and acquisitionrelated cost.
• Operating profit (EBIT) amounted to SEK 418 million (400).
• Cash flow for the period totaled SEK -384 million (-415). Operating cash flow totaled SEK -44 million (-102).
• Profit for the first quarter was SEK 296 million (295).
• Earnings per share: SEK 1.00 (1.00).

FINANCIAL OVERVIEW

	Q1	Q1	LTM	FY
SEK million	2017	2016	2017	2016
Net sales	3,443	2,999	12,832	12,388
EBITDA	495	473	1,893	1,871
% of net sales	14.4%	15.8%	14.8%	15.1%
Operating profit (EBIT)	418	400	1,590	1,573
% of net sales	12.1%	13.3%	12.4%	12.7%
Operating profit (EBIT) before items affecting comparability	418	400	1,638	1,621
% of net sales	12.1%	13.3%	12.8%	13.1%
Profit for the period	296	295	1,363	1,362
Earnings per share, SEK	1.00	1.00	4.61	4.60
Cash flow for the period	-384	-415	781	750
Operating cash flow⁽¹⁾	-44	-102	1,354	1,296
Core working capital	3,239	2,675	3,239	2,655
Capital expenditure in fixed assets	-63	-53	-235	-225
RoOC	31.2%	33.3%	31.2%	31.6%

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

STRONG SALES GROWTH AND IMPROVED UNDERLYING EBIT

Operating profit (EBIT) before i.a.c (SEK million)

Overall, we have seen a strong start to 2017, with favorable sales growth and underlying EBIT development. Sales increased by 15% in the quarter, whereof 11% was organic. All regions contributed to the growth. EBIT in constant currency was in line with the first quarter of 2016, but included additional cost items of SEK 46 million related to class action legal activities, rebranding and acquisitions.

EMEA reported strong sales growth of 23% with an EBIT improvement of 10%, in constant currency, including costs related to the acquisitions. We continue to see double-digit growth in both RV and CPV, with a persistently positive outlook from the OEMs. IPV and Oceanair contributed SEK 47 million in sales in the quarter.

Americas exhibited sales growth of 6%, adjusted for phased-out and divested businesses. However, EBIT was negatively affected by the class action legal expenses and rebranding activities. Looking at the underlying margin, there was a slight improvement compared to last year. The outlook for the RV industry remains positive and we are also seeing an uptake for the Marine business in the quarter.

APAC reported sales growth of 13% and an EBIT improvement of 24%, in constant currency. All markets are exhibiting double-digit growth, with China increasing by 57%, albeit from a low level. Despite the soft underlying RV market in Australia, our business increased by 10%, demonstrating the strength of our brand in the market.

As mentioned above, our latest acquisitions IPV and Oceanair were incorporated into Dometic during the quarter. They will contribute combined annual sales of approximately SEK 300 million to the Group. IPV will further strengthen our position in the cooling box market, which is the product area with the single largest upside potential in the long term. Oceanair provides new, high-quality products in the Marine segment and strengthens our overall presence in the market for leisure boats and super yachts.

Over the past months, we have worked hard to solve the logistics issues that occurred in EMEA and Americas in 2016, and the season has started off well in terms of supply performance. We have also launched several new attractive products, such as the Dometic Harrier Inverter and the CFX 100 portable cooler, ahead of the seasonal ramp-up.

We are standing by our financial objectives and expect to deliver growth in line with the 5% target and a margin that is closer to the 15% target in 2017. To some extent, the margin improvement is being held back by changing raw material prices, but these are partly mitigated by factory volumes and price changes to customers. The annual impact of raw material prices is estimated to be approximately SEK 50 million.

Our outlook for the year remains unchanged. Key priorities in 2017 include growing our cooling box business, further developing our business in APAC with a particular focus on China, quality and activities to strengthen our market share in the RVOEM business in the US. We also continue to look for attractive acquisitions with strong positions in niche markets.

FINANCIAL SUMMARY – FIRST QUARTER

Net sales in the three months ending March 31, 2017, totaled SEK 3,443 million, representing an increase of 15% compared with SEK 2,999 million in the same period last year. This is made up of 11% organic growth, 5% currency translation and -1% divestments/acquisitions.

Operating profit (EBIT) before i.a.c. totaled SEK 418 million in Q1 2017 which was in line with Q1 2016 in comparable currency. The EBIT margin decreased from 13.3% to 12.1%. Earnings for Q1 2017 include SEK 46 million of rebranding cost, class action legal costs and an acquisition-related cost.

Financial items amounted to a net expense of SEK 31 million (34), including SEK 26 million in interest on external bank loans (30) and SEK 2 million for amortization of capitalized long-term financing expenses (2). Other expense items amounted to SEK 3 million (3) and financial income to SEK 0 million (1).

Taxes totaled SEK -91 million (-71), corresponding to 24% (19%) of profit before tax. Current tax amounted to SEK -52 million (-55) and deferred tax to SEK -39 million (-16).

Profit for the period totaled SEK 296 million (295).

Earnings per share amounted to SEK 1.00 (1.00).

Operating cash flow totaled SEK -44 million (-102). The improvement derives from favorable changes in inventory build-up, trade payables and other working capital items. This was offset by higher trade receivables due to increased sales.

Cash flow for the period of SEK -384 million (-415) includes purchase price paid net of acquired cash and cash equivalents of SEK187 million for the acquisition of assets from IPV and the acquisition of Oceanair Ltd.

Financial position Leverage in Q1 2017 was 1.8 compared with 2.4 in Q1 2016. In Q4 2016, leverage was 1.7.

Events during the quarter. On January 18, Mattias Nordin left his position as Head of Product Management & Innovation (PMI) in Dometic's Group Management.

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

Events after the quarter. At the 2017 Annual General Meeting held on April 7, Fredrik Cappelen was re-elected as member and Chairman of the Board. Rainer E. Schmückle, Magnus Yngen and Erik Olsson were reelected as members of the Board of Directors. Heléne Vibbleus, Jacqueline Hoogerbrugge and Peter Sjölander were elected new Board members. The proposed dividend of SEK 1.85 per share was adopted.

	Q1	Q1	Change (%)		LTM	FY
SEK million	2017	2016	Rep.	Adj.⁽¹⁾	2017	2016
Americas	1,506	1,440	5%	-1%	5,815	5,749
EMEA	1,527	1,222	25%	23%	5,398	5,093
Asia Pacific	410	337	22%	13%	1,619	1,546
Total net sales	3,443	2,999	15%	10%	12,832	12,388
Americas	164	187	-13%	-17%	732	756
EMEA	162	143	13%	10%	553	534
Asia Pacific	92	70	32%	24%	353	331
Total operating profit (EBIT)⁽²⁾	418	400	4%	0%	1,638	1,621
Americas	10.9%	13.0%			12.6%	13.1%
EMEA	10.6%	11.7%			10.2%	10.5%
Asia Pacific	22.4%	20.7%			21.8%	21.4%
Total operating profit %	12.1%	13.3%			12.8%	13.1%

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

AMERICAS

Net sales (SEK million)

Sales split AM/OEM

Q1

(13.0%)

¹ Before i.a.c.

NET SALES AND OPERATING PROFIT (EBIT)

Americas, which accounted for 44% of sales in Q1 2017, reported net sales of SEK 1,506 million. This equals sales growth of 5%, of which 5% related to currency translation, -4% divestments and 4% organic growth. In addition, when adjusted for the phased-out business, underlying growth was 6%.

Operating profit (EBIT) before i.a.c. of SEK 164 million was 17% lower than last year, in constant currency. The EBIT margin decreased from 13.0% to 10.9%. The lower earnings were due to rebranding and class action legal costs.

The phased-out business refers to architectural products in the US which was phased out in first half of 2016. Full-year 2015 net sales for this business 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 volume of 106,257 units corresponds to growth of 11%. YTD February exhibited 8.6% growth compared to the first two months of 2016.

Business highlights

In Americas, Q1 sales to OEMs decreased by 3%, while aftermarket sales increased by 6%, in constant currency. Adjusted for the phased-out architectural products and divested business, OEM growth was 3% and AM 13%.

Sales in the RVOEM business, excluding divestments and the phased-out business rose by 4%. The development continues to be negatively impacted by a combination of market mix and lower market share.

The Marine OEM business reported strong sales growth, based on favorable market conditions and a broader product offering.

CPVOEM business sales continued to decline in the first quarter, even when excluding the divested business. The American truck market continues to be soft.

Aftermarket sales increased, mainly owing to higher sales in the RV, Marine and Retail channels. Main drivers were a positive market sentiment combined with new customers and an improved delivery performance.

EMEA

Net sales (SEK million)

Sales split AM/OEM

Q1

NET SALES

OPERATING PROFIT (EBIT)¹ 162 SEK MILLION (143)

OPERATING MARGIN (EBIT%)¹

¹ Before i.a.c.

NET SALES AND OPERATING PROFIT (EBIT)

EMEA, which accounted for 44% of sales in Q1 2017, reported net sales of SEK 1,527 million. This equals sales growth of 25%, of which 2% related to currency translation, 4% acquisitions and 19% organic growth.

Operating profit (EBIT) before i.a.c. of SEK 162 million was 10% higher than last year, in constant currency. The EBIT margin decreased from 11.7% to 10.6%. The deterioration in earnings was mainly due to rebranding cost, a one-off acquisition related cost and a product mix.

EMEA markets

In the first quarter of 2017, RV registrations in the larger European markets increased by 5% compared with the same period last year.

Heavy truck registrations in the last three months increased by 8% compared to the same period last year.

Business highlights

First quarter sales in EMEA in the OEM channels increased by 24%, and the aftermarket channels reported 21% growth, in constant currency. Both OEM and AM reported double-digit growth, even when excluding new acquisitions.

The RVOEM business area reported strong sales growth on the back of continued healthy demand for our products in several different product categories.

Marine OEM showed strong development in Italy, France and UK. The UK Marine OEM sales were further enhanced by the addition of Oceanair in 2017.

Sales for the CPVOEM business showed strong development both in trucks and premium cars, driven by a positive truck market momentum and volume ramp-up of new products for passenger vehicles launched in late 2016.

Aftermarket reported an increase in all businesses, with the most significant growth in RV, Lodging and Marine. The addition of the newly acquired business in mobile cooling boxes boosted retail sales compared to last year, as did the timing of large volume deliveries to customers.

APAC

Net sales (SEK million)

Sales split AM/OEM

Q1

NET SALES

OPERATING PROFIT (EBIT)¹ 92

SEK MILLION (70)

OPERATING MARGIN (EBIT%)¹

¹ Before i.a.c.

NET SALES AND OPERATING PROFIT (EBIT)

APAC, which accounted for 12% of sales in Q1 2017, reported net sales of SEK 410 million. This corresponds to a sales increase of 22%, of which 13% was organic and 9% related to currency translation.

Operating profit (EBIT) before i.a.c. of SEK 92 million represented an increase of 24% on last year, in constant currency. The EBIT margin increased from 20.7% to 22.4% in Q1 2017. The margin increased mainly as a result of a favorable product mix.

APAC markets

Statistics on Australian domestic RV production showed a decrease of 2% over the three-month period ending January, compared with the same period the previous year.

Business highlights

Sales in the OEM channels for Q1 in APAC increased by 15%, while aftermarket sales grew by 11%, in constant currency.

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

The Marine OEM business reported a sales increase compared to last year, mainly driven by higher sales in Australia where the marine market is strengthening, and more projects in Taiwan and Hong Kong.

Sales in the CPVOEM business, which is a small part of total APAC sales, increased based on sales of inverters to customers in China.

The aftermarket business continued its strong development in the first quarter, with growth in all channels except Marine. Retail, which comprises more than half of aftermarket sales reported a 7% increase.

PARENT COMPANY DOMETIC GROUP AB (PUBL)

The Parent Company Dometic Group AB (publ) 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 first quarter 2017, the Parent Company had an operating profit of SEK -4 million (0), including administrative expenses of SEK 36 million (27) and other operating income of SEK 32 million (27), of which the full amount relates to income from Group companies.

Profit from financial items totaled SEK 15 million (23), including interest income from Group companies of SEK 25 million (3), interest expenses to Group companies of SEK 0 million (0) and other financial income and expenses SEK -10 million (20).

Profit for the first quarter amounted to SEK 11 million (22).

For further information, please refer to the Parent Company's condensed financial statements on page 12. Solna, April 24, 2017

Roger Johansson

President and CEO

REVIEW

This interim report has not been subject to special review by the Dometic Group AB (publ)'s external auditor.

CONSOLIDATED INCOME STATEMENT

	Q1	Q1	FY
SEK million	2017	2016	2016
Net sales	3,443	2,999	12,388
Cost of goods sold	-2,359	-2,088	-8,463
Gross Profit	1,084	911	3,925
Sales expenses	-451	-371	-1,651
Administrative expenses	-188	-138	-604
Other operating income and expenses	-9	15	20
Items affecting comparability	0	0	-48
Amortization of customer relationships	-18	-17	-69
Operating profit	418	400	1,573
Financial income	0	1	6
Financial expenses	-31	-35	-124
Loss from financial items	-31	-34	-118
Profit before tax	387	366	1,455
Taxes	-91	-71	-93
Profit for the period	296	295	1,362
Profit for the period attributable to owners of the Parent Company	296	295	1,362
Earnings per share before and after dilution effects, SEK - Owners of the Parent Company	1.00	1.00	4.60
Number of shares, million	295.8	295.8	295.8

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SEK million	Q1 2017	Q1 2016	FY 2016
Profit for the period	296	295	1,362
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit pension plans, net of tax	-2	-3	-16
	-2	-3	-16
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges, net of tax	5	-19	13
Gains/losses from hedges of net investments in foreign operations, net of tax
	-17	-23	-149
Exchange rate differences on translation of foreign operations	35	-49	887
	23	-91	751
Other comprehensive income for the period	21	-94	735
Total comprehensive income for the period	317	201	2,097
Total comprehensive income for the period attributable to owners of the Parent
Company	317	201	2,097

CONSOLIDATED BALANCE SHEET

	Mar 31,	Mar 31,	Dec 31,
SEK million	2017	2016	2016
ASSETS
Non-current assets
Goodwill and trademarks	12,872	11,855	12,725
Other intangible assets	1,040	1,022	1,016
Tangible assets	1,588	1,543	1,575
Deferred tax assets	1,183	1,085	1,226
Derivatives, long-term	6	15	7
Other non-current assets	53	46	52
Total non-current assets	16,742	15,566	16,601
Current assets
Inventories	2,785	2,337	2,637
Trade receivables	1,699	1,382	1,041
Current tax assets	51	13	47
Derivatives, short-term	36	–	57
Other current assets	261	226	237
Prepaid expenses and accrued income	106	147	89
Cash and cash equivalents	1,213	413	1,599
Total current assets	6,151	4,518	5,707
TOTAL ASSETS	22,893	20,084	22,308
EQUITY AND LIABILITIES EQUITY	14,294	12,081	13,977
LIABILITIES
Non-current liabilities
Liabilities to credit institutions, long-term	4,332	4,222	4,453
Deferred tax liabilities	607	547	593
Other non current liabilities	17	–	–
Provisions for pensions	534	480	536
Other provisions, long-term	106	108	117
Total non-current liabilities	5,596	5,357	5,699
Current liabilities
Liabilities to credit institutions, short-term	321	370	329
Trade payables	1,244	1,044	1,024
Current tax liabilities	352	217	294
Advance payments from customers	28	20	29
Derivatives, short-term	27	48	52
Other provisions, short-term	218	204	197
Other current liabilities	181	211	134
Accrued expenses and prepaid income	632	532	573
Total current liabilities	3,003	2,646	2,632
TOTAL LIABILITIES	8,599	8,003	8,331
TOTAL EQUITY AND LIABILITIES	22,893	20,084	22,308

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, 2016	1	1,004	10,878	11,883
Profit for the period			295	295
Other comprehensive income
Remeasurements of defined benefit pension plans, net of tax			-3	-3
Cash flow hedges, net of tax		-19		-19
Gains/losses from hedges of net investments in foreign operations, net
of tax		-23		-23
Exchange rate differences on translation of foreign operations		-49		-49
Total comprehensive income		-91	292	201
Transactions with owners
Costs related to the shareholders´ contribution, net of tax			-3	-3
Total transactions with owners			-3	-3
Closing balance Mar 31, 2016	1	913	11,167	12,081

Attributable to owners of the parent

	Share	Other	Retained
SEK million	capital	reserves	earnings	Total equity
Opening balance Jan 1, 2017	1	1,755	12,221	13,977
Profit for the period			296	296
Other comprehensive income
Remeasurements of defined benefit pension plans, net of tax			-2	-2
Cash flow hedges, net of tax		5		5
Gains/losses from hedges of net investment in foreign operations, net of
tax		-17		-17
Exchange rate differences on translation of foreign operations		35		35
Total comprehensive income		23	294	317
Closing balance Mar 31, 2017	1	1,778	12,515	14,294

CONSOLIDATED STATEMENT OF CASH FLOW

	Q1	Q1	FY
SEK million	2017	2016	2016
Cash flow from operations
Operating profit	418	400	1,573
Adjustment for other non-cash items
Depreciation and amortization	77	73	298
Adjustments for other non-cash items	0	11	68
Changes in working capital
Changes in inventories	-131	-162	-364
Changes in trade receivables	-638	-489	-83
Changes in trade payables	223	127	43
Changes in other working capital	70	-9	-14
Income tax paid	5	-25	-107
Net cash flow from operations	24	-74	1,414
Cash flow from investments
Acquisition of operations	-187	–	–
Investments in fixed assets	-63	-53	-225
Proceeds from sale of fixed assets	–	1	133
Other investing activities	-1	0	–
Net cash flow from investments	-251	-52	-92
Cash flow from financing
Shareholders´contribution/Paid costs related to the shareholders´ contribution	–	-74	-74
Borrowings from credit institutions	–	–	64
Repayment of loans to credit institutions	-112	-193	-426
Paid interest	-26	-2	-97
Received interest	0	0	3
Other financing activities	-19	-20	-42
Net cash flow from financing	-157	-289	-572
Cash flow for the period	-384	-415	750
Cash and cash equivalents at beginning of period	1,599	833	833
Exchange differences on cash and cash equivalents	-2	-5	16
Cash and cash equivalents at end of period	1,213	413	1,599

PARENT COMPANY INCOME STATEMENT

	Q1	Q1	FY
SEK million	2017	2016	2016
Administrative expenses	-36	-27	-130
Other operating income	32	27	127
Operating profit	-4	0	-3
Interest income subsidiaries	25	3	71
Interest expenses subsidiaries	0	0	–
Other financial income and expenses	-10	20	-422
Profit (loss) from financial items	15	23	-351
Group contributions	–	–	353
Profit (loss) before tax	11	23	-1
Taxes	0	-1	–
Profit (loss) for the period	11	22	-1

PARENT COMPANY BALANCE SHEET

	Mar 31,	Mar 31,	Dec 31,
SEK million	2017	2016	2016
ASSETS
Shares in subsidiaries	13,563	13,563	13,563
Other non-current assets	17	10	17
Total non-current assets	13,580	13,573	13,580
Current assets	2,628	2,624	2,745
TOTAL ASSETS	16,208	16,197	16,325
EQUITY	11,590	11,601	11,579
LIABILITIES
Provisions	14	9	13
Non-current liabilities	4,332	4,222	4,453
Total non-current liabilities	4,346	4,231	4,466
Current liabilities	272	366	280
TOTAL EQUITY AND LIABILITIES	16,208	16,197	16,325

CONDENSED NOTES

NOTE 1 | ACCOUNTING PRINCIPLES

Dometic Group AB (publ) ("Dometic") 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 2016 Annual Report. There are no changes to Dometic's accounting and valuation principles compared with principles described in Notes 2 and 4 of the 2016 Annual Report. For a detailed description of the accounting and valuation principles applied by the Group, see Notes 1, 2 and 4 of the 2016 Annual Report, available at www.dometic.com.

NOTE 2 | RISKS AND UNCERTAINTIES

As all businesses, Dometic is exposed to a number of risks that could have a material impact on the Group. These risks are factors that impact Dometic's ability to achieve established Group targets. This applies to both financial targets and targets in other areas outlined in Dometic's business strategy. Dometic performs annual risk analysis by assessing each defined risks likelihood and impact in a risk register, resulting in global and regional risk maps presented to Group management and the Board of Directors and used as foundation for the control activities within Dometic. The risks that Dometic is exposed to are classified into four main categories (business and market risks, operational risks, compliance and regulatory risks and financial risks) where each category has underlying risks. These risks can be both internal and external. The internal risks are mainly managed and controlled by Dometic whereas the external risk factors are not caused nor can be controlled by Dometic but the effects can be limited by an effective risk management.

Dometic 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 forwardlooking 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's future risk exposure is assumed not to deviate from the inherent exposure associated with Dometic's ongoing business operations. For a more in-depth analysis of risks and risk management, please refer to Dometic's 2016 Annual Report.

NOTE 3 | FINANCIAL INSTRUMENTS

Dometic 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 2016 Annual Report, have been applied throughout the reporting period.

The fair values of Dometic's derivative assets and liabilities were SEK 42 million (Q1 2016: SEK 15 million) and SEK 27 million, (Q1 2016: SEK 48 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.

TABLE TO NOTE 3 – FINANCIAL INSTRUMENTS

Mar 31, 2017	Balance sheet carrying amount	Financial instruments at amortized cost	Financial instruments at fair value	Derivatives used for hedging
Per category
Derivatives	42	–	4	38
Financial assets	3,226	3,226	–	–
Total financial assets	3,268	3,226	4	38
Derivatives	27	–	7	20
Financial liabilities	6,078	6,078	–	–
Total financial liabilities	6,105	6,078	7	20

NOTE 4 | SEGMENT INFORMATION

	Q1	Q1	FY
SEK million	2017	2016	2016
Net sales, external
Americas	1,506	1,440	5,749
EMEA	1,527	1,222	5,093
Asia Pacific	410	337	1,546
Total net sales, external	3,443	2,999	12,388
Operating profit (EBIT)
Americas	164	187	698
EMEA	162	143	550
Asia Pacific	92	70	325
Total operating profit (EBIT)	418	400	1,573
Financial income	0	1	6
Financial expenses	-31	-35	-124
Taxes	-91	-71	-93
Profit for the period	296	295	1,362

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 follow-up is based on the integrated result in each segment. For further information, please refer to Note 5 of the 2016 Annual Report.

NOTE 5 | TRANSACTIONS WITH RELATED PARTIES

No transactions between Dometic and related parties that have significantly affected the company's position and earnings took place during the first quarter 2017.

NOTE 6 | ACQUISITONS AND DIVESTMENTS

Dometic has not made any acquisitions or divestments that have had a significant impact on Dometic.

On December 22, 2016, Dometic announced the acquisition of the assets of IPV, a Germany-based aftermarket provider of coolers and other outdoor products. The acquisition strengthens Dometic's position in the EMEA market for mobile coolers. The purchase price was EUR 3.5 million, and the transaction was closed on January 3, 2017.

On February 7, 2017, Dometic acquired Oceanair Marine Limited, a UK-based market-leading manufacturer of marine blinds, screens and soft-furnishings for the Leasure Marine and Super Yacht segments. The acquisition strengthens Dometic´s presence in the marine market and broadens the product portfolio. For the fiscal

years of 2015/2016 the company reported revenues of GBP 11.4 million. The initial purchase price was GBP 14.0 million in cash with additional earn-out consideration of maximum GBP 2.5 million subject to the achievement of certain performance related targets over the next 16 months.

Intangible assets recognized as a result of the acquisition of Oceanair include goodwill SEK 80 million, other intangible assets (Trademarks and Customer relationships) SEK 102 million, and SEK 20 million in deferred tax liabilities. Acquisition-related costs expensed in the consolidated income statement for Q1 2017 amount to SEK 2.5 million.

The total purchase price consideration in cash for the transactions (IPV, Oceanair), less cash and cash equivalents, amounts to SEK 187 million. The acquisitions did not have any significant impact on the operating result for Q1 2017.

NOTE 7 | SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

At the 2017 Annual General Meeting held on April 7, Fredrik Cappelen was re-elected as member and Chairman of the Board. Rainer E. Schmückle, Magnus Yngen and Erik Olsson were re-elected as members of the Board of Directors. Heléne Vibbleus, Jacqueline Hoogerbrugge and Peter Sjölander were elected new Board members. The proposed dividend of SEK 1.85 per share was adopted.

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.

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 trademarks

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.

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 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.

Q1 2017

January to March 2017 for Income Statement.

Q1 2016

January to March 2016 for Income Statement.

FY 2016

Financial Year ended December 31, 2016.

*RECONCILIATION OF NON-IFRS MEASURES TO IFRS

Dometic 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.

PRESENTATION OF THE INTERIM REPORT

Analysts and media are invited to participate in a telephone conference at 10.00 (CEST), today, April 24, 2017, 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 06
US:	+ 1 855 831 59 47

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 E-mail: ir@dometic.com

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 April 24, 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.

FINANCIAL CALENDAR

JULY 18, 2017 Interim report Q2 2017 OCTOBER 24, 2017 Interim report Q3 2017