MEKO

Quarterly Report • May 16, 2008

16 May, 2008

Interim report January – M arch 2008

• R evenues increased by 3 per cent to SE K 626 M (606). Taking into account the positive currency effects and few ernum berofw orkdaysduring the quarter, revenuesincreased by 6 percent.
• E B IT am ounted to SE K 48 M (53) and the E B IT m argin to 8 percent(9).
• Incom e afterfinancial item s am ounted to SE K 53 M (61).
• Profit after tax am ounted to SE K 39 M (44) and earnings per share before and after dilution am ounted to SE K 1.20 (1.34).
• During the quarter, 104 new w orkshops w ere affiliated, of w hich 78 belonged to the new M ekoPartner w orkshop chain. The num berofaffiliated w orkshopsincreased to a total of882 (768).

SU MMARY OF TH E G ROU P'S EARN IN G S		January - March	12 months	Full-year
TREN D	2008	2007	C hang e, %	April- March	2007
Revenues, SEK M	626	606	3	2 570	2 550
EBIT, SEK M	48	53	-9	244	250
Profitafterfinancialitems, SEK M	53	61	-13	410	418
Profitaftertax, SEK M	39	44	-11	343	348
Earnings pershare, SEK	1.20	1.34	-10	10.89	11.03
EBIT margin, %	8	9		10	10

C EO's comments

During the firstquarter, w e strengthened our m arketposition further by increasing m arketshares in all m arkets. M ekonom en's revenues increased by 3 per cent to SE K 626 M com pared w ith the year-earlier period, despite a negative trend for the general industry. Taking into account the negative calendar effect and the positive currency effectsduring the quarter, revenuesincreased by 6 percent.

E B IT am ounted to SE K 48 M (53). The calendareffectaffected E B IT negatively. The planned m easures aim ed at increasing the grow th rate charge E B IT in all countries in the short term . The m easures during the quarter included the launch of a new w orkshop concept, M ekoPartner, the establishm ent of a w orkshop centre in Sw eden, the opening of the M ekonom en O utlet in Strängnäs, extended opening hours in all countries, im plem ented m arketing activitieson TV and the developm entofa consum er-focused store concept.

O ur action program in Denm ark is going according to plan. During the quarter, Denm ark's perform ance w as satisfactory, w ith an underlying salesgrow th of12 percentand a strengthened m arketposition.

M easuresw ithin the w orkshop segm entduring the quarterresulted in a total of104 new w orkshops, ofw hich 26 are new M ekonom en Service C entres and 78 new M ekoPartner. The num ber of w orkshops in Sw eden has increased by 34, in Norw ay by 26 and in Denm ark by 44. In order to additionally increase the service level at w orkshops, w e have introduced the M ekonom en w orkshop centre, a new concept w hich focuses solely on sales and deliveries directly to w orkshops. The first w orkshop centre w as opened in V ästberga, outside Stockholm , during the quarter.

We w ill continue to focus strongly on developing our position w ith the new concept aim ed at m aking C arL ife easierforourcustom ers.

H åkan L undstedt Presidentand C E O

C onsolidated sales and earnings

REV EN U ES

R evenues increased by 3 percentto SE K 626 M (606). A djusted forcurrency effects, revenues increased by 1 per cent. C alculated on com parable w orkdays, revenues increased by 8 percent, and adjusted also forcurrency effects the increase w as 6 per cent. The num ber of w orkdays w as on average three days few er com pared w ith the yearearlier period. The underlying revenues (defined as com parable w orkdays and taking into account currency effects) increased in all countries, ofw hich Denm ark displayed the strongestgrow th.

EB IT

E B IT am ounted to SE K 48 M (53) and E B IT m argin to 8 per cent (9). A s a result of property divestm ent during the third quarter of 2007, leasing expenses increased by SE K 7 M during the first quarter of 2008 com pared w ith the year-earlierperiod. Planned grow th m easurescharged E B IT in all countries.

PR O FIT AFTER FIN AN C IAL ITEM S

Profitafter financial item s am ounted to SE K 53 M (61). Net interest incom e am ounted to SE K 3 M (expense: 1) and other financial item s to SE K 2 M (9). Financial item s include capital gains ofSE K 2 M pertaining to the divestm entofone ofthe G roup'spropertiesand currency effectsofSE K 0 M (9).

Financialposition

C ash flow from operating activitiesam ounted to SE K 18 M (87). O n 31 M arch 2008, cash and cash equivalents and currentinvestm entsam ounted to SE K 293 M , com pared w ith SE K 290 M on 31 Decem ber2007. The equity/assetsratio am ounted to 66 percent(63). Interest-bearing liabilitiesam ounted to SE K 3 M (147) and at the end ofthe period, netcash in hand am ounted to SE K 290 M , com pared w ith the netcash in hand ofSE K 284 M on 31 Decem ber2007.

Investments

During the quarter, investm ents in fixed assets am ounted to SE K 15 M (6). C om pany and business acquisitions am ounted to SE K 7 M (6). A cquired assets am ounted to SE K 3 M and acquired liabilities to SE K 0 M . No intangible excess values besides goodw ill, w hich am ounted to SE K 4 M , have been identified in connection w ith the acquisitions.

Acquisitions and start-ups

During the first quarter, a cooperation store w as acquired in K ongsvinger, Norw ay and a new store w as opened in U ppsala, Sw eden. In addition, m inority shares w ere acquired in Sw eden. Tw o stores, Sätra and Ö stberga in Sw eden, w ere closed in conjunction w ith the opening ofthe new w orkshop centre in Stockholm .

The total num ber ofstores in the chain atthe end ofthe period w as 192 (192), ofw hich 157 (148) w ere w holly ow ned stores. The num ber of affiliated w orkshops increased to a total of 882 (768), of w hich M ekonom en Service C entresincreased to 804 (768) and M ekoPartnerto 78 (0).

H uman resources

The num berofem ployeesatthe end ofthe period w as1,307 (1,251) and the average num berofem ployees during the period w as 1,305 (1,250). The increase w asprim arily due to store personnel in the nine new w holly ow ned stores.

Performance by geographic market

SW EDEN

EARN IN G S TREN D		January - March	12 months	Full-year
	2008	2007	C hang e. %	April– March	2007
N etsales (external), SEK M	294	299	-2	1 265	1 270
EBIT, SEK M	38	53	-28	201	216
EBIT margin, %	13	18	-	16	17
N umberofstores/ofw hich w holly ow ned	112/93	114/88	-	-	114/93
N umberofMekonomen Service C entres	341	334	-	-	337
N umberofMekoPartner	30	-	-	-	-

In Sw eden, the num ber of w orkdays w as tw o less than the year-earlier period, corresponding to estim ated sales ofapproxim ately SE K 10 M . The underlying netsales increased by 2 percent.

A s a result ofproperty divestm ent during the third quarter of2007, leasing expenses increased by SE K 4 M for the firstquartercom pared w ith the year-earlierperiod.

EARN IN G S TREN D		January - March	12 months	Full-year
	2008	2007	C hang e %	April– March	2007
N etsales (external), SEK M	142	134	6	592	584
EBIT, SEK M	16	20	-20	77	81
EBIT margin, %	11	15		13	14
N umberofstores/ofw hich w holly ow ned	42/26	40/22		-	42/25
N umberofMekonomen Service C entres	321	315		-	305
N umberofMekoPartner	10	-		-	-

N O RW AY

In Norw ay, the num berofw orkdays w as three less than the year-earlier period, corresponding to estim ated sales ofapproxim ately SE K 8 M . C urrency effectsw ere positive. The underlying netsalesincreased by 7 percent.

DENMARK

EARNINGS TREND		January - March	12 months	Full-year
	2008	2007	Change, %	April - March	2007
Net sales (external), SEK M	178	163	9	676	661
EBIT, SEK M		- 1	$-100$	$-21$	$-22$
EBIT margin, %		$-1$		$-3$	$-3$
Number of stores, of which wholly owned	38/38	38/38			38/38
Number of Mekonomen Service Centres	142	119		۰	136
Number of MekoPartner	38	۰

In Denmark, the number of workdays was four less than the year-earlier period and corresponds to net sales of SEK 12 M. The currency effects were positive. The underlying net sales increased by 12 per cent.

As a result of property divestment during the third quarter of 2007, leasing expenses increased by SEK 3 M for the first quarter of 2008 compared with the year-earlier period.

		O 1	O 2			O 3	O4		Full-year
	2008	2007	2008	2007	2008	2007	2008	2007	2008	2007
Sweden	62	64	62	59	66	65	62	62	252	250
Norway	61	64	63	59	66	65	62	62	252	250
Denmark	61	65	61	59	66	65	62	61	250	250

Number of workdays per quarter and country

Significant risks and uncertainty factors

The company conducted a review and assessment of operating and financial risks and uncertainty factors in accordance with the description in the 2007 Annual Report and found that no significant risks have changed since then. Risk factors and exposures for the Parent Company and the Group for the immediate future will focus primarily on logistics and delivery rate and changing the business systems in the Group, which was initiated in Sweden during 2007 and will be implemented in the rest of the Group during 2008. Refer to the 2007 Annual Report for a complete report on the risks that affect the Group.

Parent Company

The Parent Company's operations comprise Group management and Group-wide functions, as well as finance management. Profit after net financial items for the Parent Company amounted to SEK 2 M for the quarter excluding dividends from subsidiaries. The average number of employees for the period was 61 (33). As of 2007, the claims and product divisions as well as the accounts department were transferred to Mekonomen AB. These departments were previously part of the Wholesale operation in Strängnäs and the Swedish Retail operation and comprise a total of 26 persons.

During the period, Mekonomen AB sold products and service to Group companies for a total of SEK 18 M $(15).$

Events afterthe end ofthe period

M ekonom en'sA nnual G eneral M eeting w as held in Stockholm on 4 A pril, atw hich the G eneral M eeting approved the B oard'sproposals. DividendsofSE K 11 pershare, totalling SE K 339,557,042, w ere paid on 14 A pril.

M ekonom en continuesthe drive tow ardsthe corporate fleetm arketby establishing a new businessarea, M ekonom en Fleet. Staffan L indew ald hasbeen appointed ashead ofM ekonom en Fleet. Staffan L indew ald is35 yearsold and presently C E O atG oG reen A B . M ekonom en hasduring M ay entered partnership concerning service, repair, accessoriesand tiresw ith A V IS and R elacom .

Accounting principles

M ekonom en appliesthe International Financial R eporting Standards(IFR S) asadopted by the E U . This interim reportw asprepared in accordance w ith the A nnual A ccountsA ct, IA S 34 Interim Financial R eporting and R R 31 Interim R eporting forG roups. The new orrevised IFR S standardsorIFR IC interpretationsthat becam e effective on 1 January 2008 have nothad any m aterial effecton the G roup'sincom e statem entorbalance sheets. The accounting principlesin accordance w ith IFR S are unchanged from the preceding yearand are described in the 2007 A nnual R eport. The ParentC om pany preparesitsaccountsin accordance w ith the A nnual A ccountsA ctand appliesthe sam e accounting principlesand valuation m ethodsasin the m ostrecentA nnual R eport.

Forthcoming financialreporting dates

IN FO RM ATIO N	PER IO D	DATE
Interim report	January – June 2008	22 A ugust, 2008
Interim report	January – Septem ber2008	4 Novem ber, 2008
Y ear-end report	January – Decem ber2008	18 February, 2009

Stockholm , 16 M ay, 2008 M ekonom en A B (publ), C orp. R eg. No: 556392-1971

H åkan L undstedt Presidentand C E O

Thisinterim reporthasnotbeen subjectto review by the C om pany's auditors.

Forfurtherinform ation, please contact: H åkan L undstedt, Presidentand C E O M ekonom en A B , Tel: +46 (0)8-464 00 00 G unilla Spongh, C FO M ekonom en A B , Tel: +46 (0)8-464 00 00 B oel Sundvall, H ead ofcom m unicationsM ekonom en A B , Tel: +46 (0)8-464 00 00

M ekonom en A B (publ), C orp. R eg. No: 556392-1971 B ox 6077, SE -141 06 K ungensK urva Telephone: +46 (0)8-464 00 00, Fax: +46 (0)8-464 00 66

M ekonom en isa spare partschain w ith itsow n w holesale operation and a nationw ide retail netw ork ofw holly ow ned and cooperating storesin Sw eden, Norw ay and Denm ark. G roup revenuesm ainly consistofsalesto service centresand m otoristsvia w holly ow ned stores, and w holesale operationsaim ed atcooperating stores. w w w .m ekonom en.se

C	onsolidated	financialreports

Q U ARTERLY DATA BY SEG MEN T	2008	2007 2006
	Q 1	Q 4	Q 3	Q 2	Q 1	Q 4	Q 3	Q 2	Q 1
N ET SALES, SEK M
Sw eden	294	328	314	330	299	322	311	329	256
N orw ay	142	150	146	154	134	133	133	151	120
Denmark	178	166	162	170	163	162	158	176	167
G roup-w ide and eliminations	3	5	4	3	3	6	3	3	3
G ROU P	617	649	626	657	599	623	605	659	545
EBIT, SEK M
Sw eden	38	51	57	55	53	58	57	49	34
N orw ay	16	17	25	20	20	7	20	21	10
Denmark	0	-21	0	1	-1	9	1	-12	-5
G roup-w ide and eliminations	-6	-4	-3	1	-18	0	-7	-21	-1
G ROU P	48	43	78	76	53	74	71	37	38
IN VESTMEN TS, SEK M
Sw eden	5	4	3	3	2	7	2	3	3
N orw ay	1	0	1	1	1	1	1	1	1
Denmark	4	4	2	5	3	7	1	2	1
G roup-w ide and eliminations	5	7	5	1	1	0	1	2	5
G ROU P	15	15	11	11	6	15	5	8	10
EBIT MARG IN , %
Sw eden	13	15	18	16	18	18	18	15	13
N orw ay	11	11	17	13	15	5	15	14	8
Denmark	0	-13	0	1	-1	6	1	-7	-3
G ROU P	8	7	13	11	9	12	12	6	7

		January - March		12 months	Full-year
CONDENSED INCOME STATEMENT (SEK M)	2008	2007	Change %	April - March	2007
Net sales	617	599	3	2 5 4 8	2 5 3 0
Other operating revenue	9	$\overline{7}$	29	22	20
TOTAL REVENUES	626	606	3	2 5 7 0	2 5 5 0
OPERATING EXPENSES
Goods for resale	$-315$	$-316$	$\mathbf{0}$	$-1292$	$-1294$
Other external costs	$-104$	$-93$	12	$-422$	$-410$
Personnel costs	$-150$	$-135$	11	$-576$	$-560$
Depreciation of fixed assets	$-9$	$-9$	$\mathbf 0$	$-36$	$-37$
Impairment of intangible assets	$\overline{0}$	$\Omega$			0
EBIT	48	53	-9	244	250
Interest income	3	1	200	13	10
Interest expense	$\overline{0}$	$-3$	$-100$	-6	$-9$
Other financial items	$\overline{2}$	10	$-80$	159	166
PROFIT/LOSS AFTER FINANCAIL ITEMS	53	61	$-13$	410	418
Tax	$-14$	$-17$	$-18$	$-67$	$-70$
NET PROFIT/LOSS FOR THE PERIOD	39	44	$-11$	343	348
NET PROFIT/LOSS FOR THE PERIOD SPECIFIED
AS
Parent Company's shareholders	37	42	$-12$	336	340
Minority owners	$\overline{2}$	2	$\mathbf 0$	7	7
Earnings per share before dilution, SEK *	1.20	1.34	$-10$	10.89	11.03

$*)$ No dilution is applicable

CONDENSED BALANCE SHEET (SEK M)	31 March 2008	31 March 2007	31 December 2007
ASSETS
Intangible assets	214	177	206
Tangible fixed assets	98	99	97
Financial fixed assets	10	9	10
Deferred tax assets	6	3	$\overline{c}$
Inventories	572	547	554
Current receivables	354	317	300
Cash and cash equivalents and short-term investments	293	60	290
Properties held for sale	15	391	22
TOTAL ASSETS	1562	1603	1481
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	1 0 3 1	1 0 0 3	996
Long-term liabilities	48	62	44
Current liabilities	483	538	441
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	1562	1603	1481

		January - M arch	12 m onths	Full-year
C ON DEN SED C ASH -FLOW STATEMEN T (SEK M)	2008	2007	April– M arch	2007
C ash flow from operating activities before changes in w orking
capital	20	48	227	255
C ash flow from changes in w orking capital	-2	39	24	65
C ASH FLOW FROM OPERATIN G AC TIVITIES	18	87	251	320
C ash flow from investing activities	-13	-11	446	448
C ash flow from financing activities	-1	-112	-463	-574
C ASH FLOW FOR TH E PERIOD	4	-36	234	194

C H AN G E IN SH AREH OLDERS'EQ U ITY (SEK M)	January - M arch
	2008	2007
SH AREH OLDERS'EQ U ITY AT TH E BEG IN N IN G OF TH E PERIOD	996	953
C urrency effects	-4	6
Acquired minority shares, net	0	0
N etprofitforthe period	39	44
SH AREH OLDERS'EQ U ITY AT TH E EN D OF TH E PERIOD	1 031	1 003
OF W H IC H , MIN ORITY SH ARE	19	22

	2008	2007				2006
Q U ARTERLY DATA	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Totalsales, SEK M	626	653	626	666	606	630	608	663	550
EBIT, SEK M	48	43	78	76	53	74	71	37	38
Profitafterfinancialitems, SEK M	53	68	216	73	61	66	65	32	36
N etprofitforthe period, SEK M	39	65	187	52	44	46	46	23	25
EBIT margin, %	8	7	13	11	9	12	12	6	7
Earnings pershare, SEK	1.20	2.13	8.90	1.62	1.34	1.53	1.34	0.64	0.77

		January - M arch*)	12 m onths	Full-year
KEY RATIOS	2008	200´7	April– M arch	2007
Return on equity, %	33.8	15.6	33.8	35.6
Return on totalcapital, %	26.3	1.,7	26.3	27.3
Return on capitalemployed, %	38.2	20.3	38.2	38.7
Equity/assets ratio, %	66.0	62.6	-	67.3
G ross margin, %	49.0	47.2	49.3	48.9
EBIT margin, %	7.6	8.8	9.5	9.8
Earnings pershare, SEK	1.20	1.34	10.89	11.03
N etassetvaluation pershare, SEK	32.8	31.8	-	31.7
N umberofshares atthe end ofthe period	30 868 822	30 868 822	30 868 822	30 868 822
Average numberofshares during the period	30 868 822	30 868 822	30 868 822	30 868 822
N umberofstores in Sw eden/ofw hich w holly
ow ned	112/93	114/88	-	114/93
N umberofstores in N orw ay/ofw hich w holly ow ned	43/26	40/22	-	43/26
N umberofstores in Denmark/ofw hich w holly
ow ned	38/38	38/38	-	38/38

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

	O ctober - Decem ber		12 m onths	Full-year
AVERAG E N U MBER OF EMPLOYEES	2008	2007	April– M arch	2007
Sw eden	642	642	636	637
N orw ay	220	195	210	202
Denmark	380	380	384	382
ParentC ompany	61	33	60	50
G roup	1 305	1 250	1 290	1 271

Financialreports, ParentC ompany

	January - M arch		12 m onths	Full-year
C ON DEN SED IN C OME STATEMEN T (SEK M)	2008	2007	April– M arch	2007
Totalrevenues	21	21	80	80
Operating expenses	-30	-33	-100	-104
EB IT	-9	-12	-20	-23
N etfinancialitems	6	2	321	317
Profit/loss afterfinancialitems	-3	-10	301	294
PR O FIT/LO SS FO R TH E PER IO D	-3	-10	272	265

C ON DEN SED BALAN C E SH EET (SEK M)	31 M arch 2008	31 M arch 2007	31 Decem ber2007
Assets
Long-term receivables in G roup companies	0	223	0
Fixed assets	272	260	268
C urrentreceivables in G roup companies	178	165	188
Othercurrentreceivables	65	31	48
C ash and cash equivalents and short-term
investments	239	95	312
Totalassets	754	774	816
Shareholders'equity and liabilities
Shareholders'equity	639	544	637
Provisions	3	-	3
U ntaxed reserves	86	41	86
C urrentliabilities in G roup companies	0	96	50
Othercurrentliabilities	26	93	41
Totalshareholders'equity and liabilities	754	774	816

Definitions ofkey ratios

R eturn on equity

N et profit for the period,excluding m inority shares,as a percentage of average shareholders'equity, excluding m inority interest.

R eturn on totalcapital Profit after net financialitem s plus financialexpenses as a percentage ofthe average totalassets.

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

R eturn on capitalem ployed

Profit after net financialitem s plus interest expenses as a percentage ofaverage capitalem ployed.

Equity/assets ratio Shareholders'equity including m inority as a percentage oftotalassets.

G ross m argin N et sales less costs for goods held for resale as a percentage ofnet sales.

EB IT m argin

EB IT after depreciation and am ortisation as a percentage ofoperating revenue.

N et asset value per share

Shareholders'equity excluding m inority share,in relation to the num ber ofshares at the end ofthe period.

Earnings per share N et profit for the period,excluding m inority shares,in relation to the average num ber of shares.