23 October Offering. 2 Gunnebo Group. Q Safe Storage, 36% Cash Management, 21% Entrance Control, 21% Integrated Security, 22%

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1 Gunnebo Group Q October 2018 The Group in Brief 4,900 MSEK Turnover ,400 No of Employees 25 Sales Companies Offering Safe Storage, 36% Cash Management, 21% Entrance Control, 21% Integrated Security, Distributor Markets 2 Gunnebo Group. Q

2 CEO Comments on Q3 Strong Growth and Continued Streamlining Sales growth in all three of the core Business Units Double-digit growth in both Entrance Control and Safe Storage Improved result for continuing operations During the third quarter we have continued to streamline the business and shift our focus from region to product. Henrik Lange, President and CEO 3 Gunnebo Group. Q Summary of the Quarter Sales Sales Sales growth growth 2017 growth Net sales, MSEK Q3 Q3 % YTD YTD % Full year % Safe Storage ,320 1, ,708-8 Cash Management ,031 8 Entrance Control Integrated Security ,228-6 Total 1,303 1, ,708 3, , Margin 2017 Margin 2018 Margin 2017 Margin 2017 Margin Q3 % Q3 % YTD % YTD % year % EBITA, MSEK Full Safe Storage Cash Management Entrance Control Integrated Security Group Functions Total Net sales amounted to MSEK 1,303 (1,164), sales growth was 6% EBITA amounted to MSEK 92 (85) and the EBITA margin was 7.1% (7.3) EBITA YTD of Safe Storage, Cash Management & Entrance Control was 311 (270) 4 Gunnebo Group. Q

3 Business Unit Performance YTD 2018, % Safe Storage 36% of Sales Sales Growth 8.1% EBITA Cash Management 21% of Sales -1% Sales Growth 10.1% EBITA Entrance Control 21% of Sales 17% Sales Growth 16.1% EBITA Integrated Security 2 of Sales -7% Sales Growth -0.7% EBITA 5 Gunnebo Group. Q Business Unit Safe Storage Q MSEK % 1 10% 8% 6% 4% 0% Sales EBITA, % 12M EBITA, % 36% of Group Sales (YTD) Sales increased by 15% in the third quarter General good sales development for ATM safes Strong sales growth in Americas, with a high level of sales in the channel partner network Sales growth in most markets in Asia-Pacific. Positive development in sales to private banks in the India. Positive development on most major markets in Europe Safe Storage Q3 Q3 YTD YTD Full year SALES BY REGION, YTD 2018 Net sales, MSEK ,320 1,259 1,708 Sales growth, % EBITA, MSEK EBITA margin, % Items affecting comparability (IAC), MSEK Operating capital employed % 26% 58% EMEA APAC Americas 6 Gunnebo Group. Q

4 Business Unit Safe Storage Q Highlights India: A leading Indian gold loan company continues to engage Gunnebo to enhance safety levels in its existing safes used to store gold Denmark: A major bank invests in automated safe deposit solution, SafeStore Auto, to be installed in its prime branch in Århus Switzerland: Banque Gonet extends its customer offering by investing in safe deposit lockers China: A Chubbsafes-branded experience centre for panic rooms with vault door opens in Hangzhou US: A large bank extends its branch network and places major orders for safe storage solutions US: Delivery of customised solutions to a government authority Canada: A large bank entrusts Gunnebo to install an alternative vault solution in one of their main branches 7 Gunnebo Group. Q Business Unit Cash Management Q MSEK % 14% 1 10% 8% 6% 4% 0% Sales EBITA, % 12M EBITA, % 21% of Group Sales (YTD) Sales increased by in the third quarter Strong sales development in the Middle East due to major deliveries to a regional CIT company Good levels of sales of the closed cash management system, SafePay, in the Nordics In region Americas, sales in Brazil also showed growth. Sales in the US developed more weakly, mainly due to continued delays in investments in bank projects In Asia-Pacific, Cash Management is still a small part of sales. Development was good in Australia. Cash Management Q3 Q3 YTD YTD Full year SALES BY REGION, YTD 2018 Net sales, MSEK ,031 Sales growth, % EBITA, MSEK EBITA margin, % Items affecting comparability (IAC), MSEK Operating capital employed, MSEK Gunnebo Group. Q % 69% EMEA APAC Americas 4

5 Business Unit Cash Management Q Highlights Germany: Retailer places major order for Gunnebo's cash deposit solutions, to be rolled out over the coming five years Sweden: Energy company ST1 with petrol stations nationwide invests in SafePay closed cash management system Netherlands: Continued good order intake from CIT company using cash management solutions from Gunnebo to optimise its retail offering Australia: Major retailer signs two-year service contract for its installed base of cash management solutions Middle East: Large CIT company in the Middle East continues to place orders for Gunnebo s cash management solutions to streamline the cash process for its retail customers Brazil: Gunnebo Cash Management solutions continue to grow in retail with a positive kick-off in the petrol station segment 9 Gunnebo Group. Q Business Unit Entrance Control Q MSEK 21% of Group Sales (YTD) % 18% 16% 14% 1 10% 8% 6% 4% 0% Sales EBITA, % 12M EBITA, % Sales increased by 17% in the third quarter Asia-Pacific continued to develop positively, with deliveries on major projects to high-risk sites in India In Europe, sales developed well, especially in the Nordics and UK. Several major deliveries to airports and mass transit customers. Strong sales development in Americas, where growth is primarily coming from customer segment Public & Commercial Buildings Entrance Control Q3 Q3 YTD YTD Full year SALES BY REGION, YTD 2018 Net sales, MSEK Sales growth, % EBITA, MSEK EBITA margin, % Items affecting comparability (IAC), MSEK Operating capital employed, MSEK % 1 55% 10 Gunnebo Group. Q EMEA APAC Americas 5

6 Business Unit Entrance Control Q Highlights Switzerland: Several public high-risk sites in Geneva increase entrance security with solutions from Gunnebo South Korea: The performance of Gunnebo s airport gate solutions makes Gunnebo stand out from the competitors and wins an order for ImmSec to be installed in two airports in South Korea China: Hangzhou Metro Line No.5 in China installs Gunnebo s MFL for flow control and fare collection Middle East: Gunnebo s high-security range for outdoor perimeter protection, elkosta, is specified in security projects for critical sites in Saudi Arabia India: Business for metro gates for metro projects is developing well US: Good initial success in several airport projects 11 Gunnebo Group. Q Business Unit Integrated Security Q MSEK % 8% 6% 2 of Group Sales (YTD) The sales contraction from previous quarter in 2018 continued into the third quarter Overall weak sales development in Europe % 0% - -4% Sales EBITA, % 12M EBITA, % Sales in Asia-Pacific contracted In Americas, sales developed positively mainly in Brazil and Mexico Integrated Security Q3 Q3 YTD YTD Full year SALES BY REGION, YTD 2018 Net sales, MSEK ,228 Sales growth, % EBITA, MSEK EBITA margin, % Items affecting comparability (IAC), MSEK Operating capital employed, MSEK % EMEA APAC Americas 12 Gunnebo Group. Q

7 Business Unit Integrated Security Q Highlights Mexico: Banamex invests in upgrading its branch network across the country Canada: Retail chain North West turns to Gunnebo to upgrade loss prevention solutions in its stores nationwide India: Sales of fire equipment marketed and sold under the Minimax brand continue to develop well Brazil: DPSP Group shows continued trust in Gunnebo by installing EAS solutions in more than 80 stores during the quarter Brazil: An important deal for Electronic Article Surveillance and CCTV equipment for 16 supermarkets, increases Gunnebo partnership with GPA, Brazil s largest retail and distribution chain Spain: As part of the increased focus on the main Business Units, a small local alarm monitoring business for consumers has been divested 13 Gunnebo Group. Q Update: Business in France, Belgium and Luxembourg Under Divestment Discontinued Operations Local integrator business not core for the future of Gunnebo Scope: French sales company, production facilities in Baldenheim and Bazancourt, and the Belgian and Luxembourg business 2017 turnover: MEUR no. of employees: 930 In the third quarter, the ongoing divestment has been subject to works council consultation, which has successfully been completed. Full closing is expected to take place in quarter four after antitrust clearance. The planned divestment of the French, Belgian and Luxembourg integrator business is in line with our strategy to become a more productfocused company. With OpenGate as the owner, this business will have the right foundation to further develop its business in line with its own clearly defined agenda. Henrik Lange, President & CEO 14 Gunnebo Group. Q

8 Summary of the Quarter Sales Sales Sales growth growth 2017 growth Net sales, MSEK Q3 Q3 % YTD YTD % Full year % Safe Storage ,320 1, ,708-8 Cash Management ,031 8 Entrance Control Integrated Security ,228-6 Total 1,303 1, ,708 3, , Margin 2017 Margin 2018 Margin 2017 Margin 2017 Margin Q3 % Q3 % YTD % YTD % year % EBITA, MSEK Full Safe Storage Cash Management Entrance Control Integrated Security Group Functions Total Other financial information, Q3 Q3 YTD YTD year MSEK Full Amortisation and impairment from acquisition related intangibles Items affecting comparability (IAC) EBIT Net profit for the period Earnings per share, SEK Discontinued operations Net profit for the period Earnings per share, SEK Net sales amounted to MSEK 1,303 (1,164), sales growth was 6% EBITA amounted to MSEK 92 (85) and the EBITA margin was 7.1% (7.3) EBIT amounted to MSEK 88 (63) and the EBIT margin was 6.8% (7.2) EBIT includes the sales of monitoring business in Spain (MSEK 21) and a one time impairment of intangible asset (MSEK -11) Net profit for the period for the continuing operation was MSEK 56 (25). Including the discontinued operation net profit for the period, was MSEK 11 (16) Free cash flow was MSEK 15 (-63) Continuing and discontinued operations Net profit for the period Earnings per share, SEK Free cash flow EBIT and EBITA by Quarter, MSEK EBITA EBIT 16 Gunnebo Group. Q

9 EBITA Margin by Quarter, % 1 10% 8% 6% 4% 0% EBITA % EBITA % 12M 17 Gunnebo Group. Q EBITA Bridge by QTD, MSEK EBITA BRIDGE Q3 EBITA Organic 16 Structure 8 Currency 4 Other -21 EBIT Gunnebo Group. Q

10 Group Income Statement, MSEK MSEK Q3 Q3 YTD YTD Full year Net sales 1,303 1,164 3,708 3,561 4,861 Cost of goods sold ,668-2,517-3,447 Gross profit ,040 1,044 1,414 Selling and administrative expenses ,127 Other operating income and expenses, net EBIT Financial income and expenses, net Profit before taxes Income taxes Net profit for the period from continuing operations Net loss/profit for the period from discontinued operations Net profit/loss for the period Net profit/loss attributable to: Shareholders of the Parent Company Non-controlling interests Net profit/loss for the period Weighted average number of basic shares, thousand 76,422 76,320 76,354 76,320 76,320 Weighted average number of diluted shares, thousand 76,443 76,393 76,423 76,385 76,389 Earnings per share, SEK Of which, continuing operations, SEK Of which, discontinuing operations, SEK Gunnebo Group. Q Earnings per share after dilution, SEK Of which, continuing operations, SEK Of which, discontinuing operations, SEK Discontinued Operations Q Gunnebo has signed an offer from global private equity firm OpenGate Capital to acquire Gunnebo s business in France, Belgium and Luxembourg. The divestment has been subject to works council consultation, which has successfully been completed. Full closing is expected to take place in quarter four after antitrust clearance. The ongoing divestment includes the French sales company, production facilities in Baldenheim and Bazancourt as well as the Belgian and Luxembourg business MSEK Q3 Q3 YTD YTD Full year Net sales ,130 EBIT from operating activities Result from operating activities Loss on divestment Net profit/loss from discontinued operations Total assets of disposal group held for sale ,021 Total liabilities of disposal group held for sale Net sales for discontinued operations in the third quarter amounted to MSEK 242 (245) EBIT related to the operations amounted to MSEK -41 (-14) and net result from operating activities amounted to MSEK - 45 (-9) The loss on the divestment recorded was MSEK -609 YTD 20 Gunnebo Group. Q

11 Free Cash Flow, MSEK Continuing and Discontinued Operations MSEK 2018 Q Q YTD 2017 YTD 2017 Full year Operating profit Depreciation Amortisation and impairments, acquisition related intangibles Impairments and write-downs, discontinued operations Amortisation - other intangibles Other Change in working capital Operating cash flow Investing cash flow excluding acquisitions Free cash flow Gunnebo Group. Q Free Cash Flow by Quarter and Last Twelve Months, MSEK Continuing and Discontinued Operations Free cash flow 12M 22 Gunnebo Group. Q

12 Net Debt/EBITDA Continuing and Discontinued Operations MSEK 23 Gunnebo Group. Q Group Targets & Outcome Q3/YTD 2018 Target Q3 Outcome YTD Growth* Annual Sales Growth of 5% 6% Profitability* EBITA of >10% 7.1% 6.3% Net Debt /EBITDA** Net Debt/EBITDA of < Dividend** Annual Dividend of 30-50% of the Net Profit 60% FY 2017 Sustainability** Reduce use of electricity, CO 2 emissions and increase recycling All manufacturing units ISO certified All major suppliers compliant with Code of Conduct All major manufacturing units OHSAS certified * ** Incl Discontinued Operations 24 Gunnebo Group. Q

13 Financial Calendar 15 November, 2018 CMD February, 2019 Year-End Report April, 2019 AGM April, 2019 Q1 Report July, 2019 Q2 Report Gunnebo Group. Q

14 Annual Sales Growth of 5% Definition: Growth in net sales in constant currencies, hence including both organic and acquired growth Target is to grow the main Business Units in line with market or better With focus on the main Business Units, the Group will be better structured to capture growth in the market 27 Gunnebo Group. Q EBITA of >10% % 8% 6% 4% 0% Definition: EBIT excluding IAC and acquisition related amortization and impairments. For the Business Units, no costs for Group functions are allocated. Target is to reach a 10% EBITA through focusing on the main Business Units, driving both topline growth and margin improvements. EBITA EBITA % 12M EBITA % EBITA target defined by Business Unit will allow dedicated focus on driving improvements. 28 Gunnebo Group. Q

15 Net Debt/EBITDA of < Net debt incl. post-employment benefits (PEB) Net debt Net debt incl. PEB/EBITDA Net debt/ebitda 5,50 5,00 4,50 4,00 3,50 3,00 2,50 2,00 1,50 1,00 0,50 0,00 Definition: Period end net debt excluding pension liabilities divided by EBITDA for the last 12 months Will ensure the Group s capital strength. Target will drive a clear cash flow focus by Business Unit. When acquisition is performed the Group expects the Net Debt/EBITDA to increase and over time reduce to a normalized level again. 29 Gunnebo Group. Q Dividend of 30-50% of Net Profit 80% Increase from 30-40% of net profit to 30-50% will ensure good direct return. 60% 40% 20% 0% Annual dividend of net profit, % The Business Unit focus will give increased profitability enough to both reinvest in our business and also increase the dividend level to the Group s shareholders. By ensuring a Business Unit focus the Group will improve its profitability and thus dividends over time. 30 Gunnebo Group. Q