mekonomen group

Mekonomen Group

January – March 2016

11 May 2016

2Summary Q1 2016

Favourable underlying growth in Q1 2016, despite Easter effect

The losses in Denmark have been halved compared to Q4 2015

Lower EBIT compared with Q1 2015, caused mainly by weak

EBIT in Mekonomen Sweden

3First quarter 2016

SEK 1 424 M (1 382)Revenue

SEK 149 M (169)EBITA

10 per cent (12)EBITA margin:

SEK 121 M (142)EBIT:

9 per cent (10)EBIT margin:

+3 per centRevenue growth

+9 per centUnderlying sales growth:

Sales and result- per segment

4

5MECA – first quarter 2016

EBIT: SEK 60 M (68)

EBIT margin: 12 per cent (15)

Underlying net sales: +20 per cent affected by Opus Equipment and Denmark

Opus Equipment has affected EBIT negatively by SEK 2 M in the quarter. Denmark EBIT was SEK -5 M. The losses in Denmark have been halved compared with Q4 2015.

Weaker NOK exchange rate has negatively affected the profit (translation effects)

Heavy vehicles – sales to Nobina initiated

6Mekonomen Sweden – first quarter 2016

EBIT: SEK 52 M (65)

EBIT margin: 11 per cent (14)

Underlying net sales: +5 per cent

Negative effect on gross margin, mainly driven by unfavourable product mix

The reorganisation implemented, with new workingmethods, has not yet had desired effect on sales

Implementation of the new retail store system has taken much effort from those stores where the system has beenintroduced

7Initiatives in Mekonomen Sweden

New working methods with increased presence at the customer

Management at district level instead of store level

Field sales force with focus on other workshops

Availability in local warehouses

Implementing a new retail store system

One Mekonomen – increased cooperation with affiliatedconcept workshops

8Mekonomen Norway – first quarter 2016

EBIT: SEK 27 M (35)

EBIT margin: 14 per cent (17)

Underlying net sales: +8 per cent

Weaker NOK exchange rate has negatively affected the profit (translation effects)

Decreased gross margin, driven by consumer campaignsamong other things

Increased volumes to the segment other workshops

9Sørensen og Balchen – first quarter 2016

EBIT: SEK 24 M (25)

EBIT margin: 13 per cent (13)

Underlying net sales: +2 per cent

Weaker NOK exchange rate has negatively affected the profit (translation effects)

Stable development

Good sales to consumers

10Operating expenses

59932 -4 -2 -1 624

0

100

200

300

400

500

600

700

Q1 2015 Cost increase, net, ofadditional units and

closures

Cost savingprogramme

Net salary and costinflation and lower

marketing

Other Q1 2016

MS

EK

Operating expenses Q1 2015 vs Q1 2016

11Market – Vehicle miles traveled and number of cars in the car fleet

Source: Trafa

Total mileage for passenger cars in million Swedish mile (in Sweden)

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

Antal personbilar som varit i trafik någon gång under åretCar fleet – number of passenger cars in traffic at any time during the year (in Sweden)

12Market – Newly registered passenger cars

Källa: BIL Sweden

0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

Number of newly registered passenger cars in Sweden per year (2016 = estimate)

Market and growth

13

14Sales growth by customer group in the first quarter 2016- Favorable sales growth to workshop customers

Affiliated workshops

Local currency

Nominal outcome

+5%

nt via

Consumers

Local currency

Nominal outcome

+1%

Other workshops

Local currency

Nominal outcome

5%

+9% +4% +10%

15Distribution, customer groups Q1 2016- Favorable sales growth to workshops

37,2 (37,0)

19,2 (19,9)

43,6 (43,1)Consumers via affiliated workshops

Consumers via stores

Other workshops

Q1 2016 (Q1 2015)

16

Stores

20

6

22

0

23

0 25

7

25

4

23

8

19

6

19

2

19

2

18

9

18

7

18

8

77

78

74

71

71

71

70

70 71

89

86

87

87

87

86

85 85

0

50

100

150

200

250

300

350

400

450

2008 2009 2010 2011 2012 2013 2014 Q1 2015Q2 2015Q3 2015Q4 2015Q1 2016

Mekonomen BilXtraMECA Own

17

Affiliated workshops

852

910

973

1033

1094

1097

1075

1037

987

946

923

927

199 296 363 420

426

378

355

338

298

274

261

258

219

225

243

232

233

236

244

246

248

546

570

628

626

638

657

676

676

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

2 600

2008 2009 2010 2011 2012 2013 2014 Q12015

Q22015

Q32015

Q42015

Q12016

Mekonomen MekoPartner BilXtra Speedy MECA Car Service

18

ProMeister

January 2016 affected by larger proportion of products related to cold weather

7,2%6,6%

8,4%

7,4%

8,6%

10,4%

11,6% 11,7%12,2% 12,5%

11,8%

13,4%14,0%

12,7% 12,8%13,5%

11,0%

12,8% 12,8%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

ProMeister share of spare parts sale

Focus

19

20

Focus 2016

The growth is our most important focus in 2016

We continue to see the most potential for growth in our

core business to B2B customers

New working method in Mekonomen Sweden with

increased presence at the customer is expected to have

positive effects

To cost effective increase sales in Denmark

Intensified marketing efforts in Mekonomen

Sweden

Group-wide e-commerce platform for B2B

and B2C and increase the quality of our

workshops

21Customer orientation – Car owners misinformed

Do you think the new car warranties apply if you

serve at an independent workshop?

32%

36%

32%

Yes, it alwaysapplies if the work isprofessionally done

No, must serve at thedealership

Don't know

Two of three car owners are unsure of what applies on new car warranty when they serve

the car at independent workshops

Respondents in per cent (one answer alternatives)

22

Strategic focus areas

Growth and innovation

Continued focus on ProMeister, ProMeister Academy- Products och training

Strategic projects– E-commerce platform for B2B and B2C, PIM (launched Q1 2016)

– Central warehouse

Continued quality assurance of workshops and concepts

Group-wide functions- Purchasing, category, supply chain and IT

23

Examples of business initiatives

Mekonomen has signed a fleet agreement to

supply spare parts to LKAB

Heavy vehicles – sales to Nobina initiated

Sales of oils initiated to industrial customers in

Norway

24

Customer survey – Choice of workshop

Customer service, customer orientation and price are important

factors in selection of workshop

Good customer orientation and service on previous visits

Price

The workshop is expert in my car brand

The location of the workshop

Recommendations from friends

Requirements of the new car warranties

Recommendations on internet

Other

Don't know

What determines where you leave your car?

Respondents in per cent (multiple choices)

25

Customer survey – customer orientation

The customer orientation get good grades in the industry

51

37

6

1

0

5

Very good

Good

Neither good nor bad

Usually poor

Always poor

Don't know

0 10 20 30 40 50 60

How do you usually get treated at the workshop?

Respondents in per cent (one answer alternatives)

26

Consumer survey - trust

Do you trust your workshop?

79%

7%

14%

Yes

No

Don't know

Respondents in per cent (one answer alternatives)

Appendix

27

28

Earnings trend

The amounts in the table above pertain to continuing operations, except for Profit after tax and Earnings per share. For further information about discontinued operations.

29

Quarterly data

1) The key figures are calculated including discontinued operations for each quarter.2) The key figures for return on shareholders’ equity are calculated on a rolling 12-month basis for continuing operations for each quarter.

30Cash flow

31Income statement

32

Balance sheet

33

Largest owners as of 2016-03-31

Vo ting rights and

Share capitals, %

Axel Johnson company 26,5

Handelsbanken Funds 9,7

Lannebo Funds 7,7

Fourth Swedish National Pension Fund 6,2

Eva Fraim Påhlman 5,6

Kempen Funds 3,7

Columbia Funds 3,2

Ing-Marie Fraim Sefastsson 2,8

Catella Funds 1,5

Swedbank Robur Funds 1,4

Total 10 largest shareholders 68,2

Others 31,8

Total 100,0