Welcome to Gunnebos Capital Market Day 2016 Disclaimer - - PDF document

Welcome

to Gunnebo’s Capital Market Day 2016

Gunnebo Capital Market Day March 10 2016, page 2

Forward-looking statements This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performances, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. Gunnebo has based these forward-looking statements

• n its views with respect to future events and financial performance. Actual financial performance of the

entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were

• made. The information contained in this presentation is subject to change without notice and Gunnebo

does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

Disclaimer

Gunnebo Capital Market Day March 10 2016, page 3

• Strategic Update

Henrik Lange

• Financial Update

Susanne Larsson

• Region EMEA

Morten Andreasen

• Region Americas

Dan Schroeder

• Region APAC

Sacha de La Noë

• Summing Up

Henrik Lange

• Q&A

Today’s Agenda

Gunnebo Capital Market Day March 10 2016, page 4

Strategic Update

Henrik Lange

President & CEO

Gunnebo Capital Market Day March 10 2016, page 5

The Gunnebo Group in Brief

The Leading Global Provider of a Safer Future

• Annual turnover: 6,100 MSEK
• Employees: 5,500 people
• Headquarters: Gothenburg, Sweden
• Sales Companies: 32 countries across Europe,

the Middle East, Africa, Asia-Pacific and Americas

• Channel Partners: 100 additional markets
• Listed on the NASDAQ OMX Stockholm, Mid Cap since 1995

Gunnebo Capital Market Day March 10 2016, page 6

• Total value estimated to approx. 70 BUSD
• Expected annual growth: ~5 per cent
• Main drivers
• Economic development
• Increased standards of living
• Urbanisation
• Increased safety awareness
• A fragmented market

The Global Security Market

Gunnebo Capital Market Day March 10 2016, page 7

Our Regions

EMEA Asia-Pacific Americas

7% = Outside Europe

57 % 7%

18%

Gunnebo Capital Market Day March 10 2016, page 8

Customer Segments

Bank

Customers include Bank of India, Citibank, HSBC, ING Bank, LCL, Nordea, Manappuram Finance, State Bank of India and Standard Bank.

Retail

Customers include Aldi, COOP, Leroy Merlin, Smart Club, Catwalk and Statoil.

Industrial & High-Risk Sites

Customers include manufacturing plants, logistics centres, power plants, prisons, casinos and stadia.

Gunnebo Capital Market Day March 10 2016, page 9

Customer Segments

Mass Transit

Customers include the public transport networks of Barcelona, Beijing, Bogotá, New Delhi and Shanghai and airports in Bahrain, Boston, Dubai, London, Madrid, Paris, Sydney and Warsaw.

Public & Commercial Buildings

Customers include the European Commission, NATO, the UK Home Office as well as American Express, Microsoft, Nestlé, Shell and Vodafone.

Cash In Transit (CIT)

Customers include Brinks, G4S, Loomis and RCCS.

Gunnebo Capital Market Day March 10 2016, page 10

The Gunnebo Group: Organisation

President & CEO Henrik Lange EMEA Morten Andreasen Asia-Pacific Sacha de La Noë Americas Dan Schroeder Entrance Control Robert Hermans CFO Susanne Larsson Human Resources Magnus Lundbäck Group Operations Lars Thorén Business Development Tomas Wängberg

Gunnebo Capital Market Day March 10 2016, page 11

Gunnebo Operations Gunnebo Operations is responsible for manufacturing, purchasing and procurement.

• Manufacturing footprint – production units

in 10 countries across the world

• Asia-Pacific: Jakarta (Indonesia), Halol (India),

Kunshan (China)

• EMEA: Baldenheim (France), Bazancourt (France),

Binefar (Spain), Doetinchem (Netherlands), Lavis (Italy), Markersdorf (Germany), Wadeville (South Africa)

• Americas: Cincinnati (USA)

ISO Certification The majority of the Group’s plants have certification for ISO 9001 (quality processes) and ISO 14001 (environmental management) Gunnebo Operations System (GOS) GOS has been implemented in all plants to improve efficiency in production processes

Gunnebo Capital Market Day March 10 2016, page 12

• We want to help create a safer world
• Broad product portfolio
• Long customer relationships
• Broad service capability
• Good knowledge of both software and

hardware

• Engaged employees

Reflection: Why Gunnebo?

Gunnebo Capital Market Day March 10 2016, page 13

• Holding company
• Island mentality
• Local processes
• Insufficient profitability
• Limited cash flow focus

Gunnebo’s Journey to Profitable Growth

2016-2020

• Operating company
• Global processes
• Standardized, lean way
• f working
• Customer focused
• Good profitablility
• Cash flow focus

FROM: TO:

Gunnebo Capital Market Day March 10 2016, page 14

Gunnebo’s Strategy: Profitable Growth

The leading global provider of a safer future

Cash Management Entrance Security Electronic Security Safes & Vaults Software platform Employee Engagement & Performance Culture

The Group’s mission is to help create a safer world by offering security products, services and solutions that create value for shareholders, customers, partners, employees and society

Solution selling to key accounts in customer segments Operational excellence PRODUCT PILLARS

Gunnebo Capital Market Day March 10 2016, page 15

Strategy and Strategic Priorities

Gunnebo Capital Market Day March 10 2016, page 16

MEET financial targets

Gunnebo Capital Market Day March 10 2016, page 17

• Organic growth: 5%
• Operating margin: 7%
• Return on capital employed: 15%
• Equity ratio: 30%

Gunnebo’s Financial Targets

5% 7% 15% 30%

Gunnebo Capital Market Day March 10 2016, page 18

Performance against Financial Targets

Average annual development over 5 years Organic growth: 0.6% Operating margin: 5.8% ROCE 12.0% Equity ratio: 38.6%

• Organic growth: 5%
• Operating margin: 7%
• Return on capital employed: 15%
• Equity ratio: 30%

Gunnebo Capital Market Day March 10 2016, page 19

Meet Financial Targets

• Organic growth: 5%
• Operating margin: 7%
• Return on capital employed: 15%
• Equity ratio: 30%

5% 7% 15% 30%

Gunnebo Capital Market Day March 10 2016, page 20

GROW product areas

Gunnebo Capital Market Day March 10 2016, page 21

EMEA Asia-Pacific Americas

Safes & Vaults Cash Management Entrance Security Electronic Security

Operational P&L Responsibility Strategic Direction Product Roadmap R&D

Regional & Product Responsibility

Gunnebo Capital Market Day March 10 2016, page 22

Safes & Vaults

Gunnebo Capital Market Day March 10 2016, page 23

Total Market Size and Forecasted Growth

Source: Safes and Vaults. “A Global Strategic Business Report” – May 2014

31% 28% 41%

World Market for Safes & Vaults 2013 22bn SEK

Americas (bn€) EMEA (bn€) APAC (bn€) 1 2 3 4 5 6 7 Americas EMEA APAC % of Annual Growth Rate

Annual Growth Rate 2013-2020

Gunnebo Capital Market Day March 10 2016, page 24

Total Market Size and Forecasted Growth: ATM Market

Source: Global ATM Market and Forecasts to 2018, published by RBR in Aug 2013 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of ATMs

Gunnebo Capital Market Day March 10 2016, page 25

ATM OEM Business

• Global KAM and support
• Global demand chain with product

availability

• Global design and optimization
• Value Engineering for continuous

cost reductions

• Global manufacturing footprint
• Test and certification management

Gunnebo Capital Market Day March 10 2016, page 26

Market Drivers: Safes & Vaults High Segment

• Reduction of bank market/branch network,

reduction of protection in banks and more non vault banks in mature markets while growing in emerging markets

• Trend towards lower protection levels in

mature markets due to increasing focus on electronic measures/technology

• Increased interest for high protection

solutions outside banks (as retail, pharmaceutical etc.) driven by legislation

• Trend towards intelligent locking solutions and

more technology/customizations, from product to solutions need

Gunnebo Capital Market Day March 10 2016, page 27

Market Drivers: Safes & Vaults Low Segment

• Large growth with increasing

demand for low/ungraded safes. Popularity of hotel safes and home safes is growing.

• Developing countries power

future market growth

• Online sales are growing
• Changing purchasing behaviors

Gunnebo Capital Market Day March 10 2016, page 28

PRODUCT ROADMAP

Gunnebo Capital Market Day March 10 2016, page 29

Safes & Vaults: Product Roadmap

• Protect high segment
• Grow low segment
• Reduce cost

Gunnebo Capital Market Day March 10 2016, page 30

Cash Management

Gunnebo Capital Market Day March 10 2016, page 31

Cash Continues to Be King

Gunnebo Capital Market Day March 10 2016, page 32

Cash Management: The Retail Market

Source: Combination of external reports, internal resources and market intelligence

APAC 2.3m stores Americas 1.8m stores

10%

Market Growth

11%

Market Growth

6%

Market Growth

EMEA 4.1m stores

Gunnebo Capital Market Day March 10 2016, page 33

• Acquired Q3 2015. Integration ongoing.
• Based in Binefar, Spain
• Strong background in R&D
• Sallén is the new cash deposit product center

for Gunnebo

• Sallén products stengthen Gunnebo’s global
• ffering
• Gunnebo will capitalise on strong local

relationships with key customers

Grupo Sallén: Strong Contribution to the Gunnebo Portfolio

Gunnebo Capital Market Day March 10 2016, page 34

GUNNEBO’S OFFERING

How we help our customers

Gunnebo Capital Market Day March 10 2016, page 35

Cash Management: Product Roadmap

Start of Day Start float

Retail Front Office Retail Back Office CIT / Bank

Deposit Solutions (Basic) Recycling / Dispensing Solutions (Advanced)

Closed Cash Handling Solutions (Integrated)

Cash Sales Transactions Transport End float Transport Process Information CIT Process & Transport Third party technology Own technology Recycling Solutions (Advanced)

Deposit Solutions (Basic/Advanced)

Sallén contribution

Gunnebo Capital Market Day March 10 2016, page 36

Increased fast software and customization capabilities

Cash Management: How We Serve Our Customers

Bundle note feed SafePay Updated recycling and closed cash (low cost) Develop universal note reader Consolidate product range and software Become the link between retailers, banks and CIT’s Build regional competence and customization capabilities Increased product management and sales capabilities in factories

Gunnebo Capital Market Day March 10 2016, page 37

Entrance Security

Gunnebo Capital Market Day March 10 2016, page 38

• Entrance Control
• Security Doors & Partitions
• Electronic Article Surveillance -

Gateway

Entrance Security in Gunnebo

Gunnebo Capital Market Day March 10 2016, page 39

Entrance Control: Introduction

• 70,000+ Gunnebo gates installed worldwide
• 90 million+ people processed daily
• 1 in 7 entrance security gates sold worldwide is a Gunnebo gate
• 1 in 4 speed gates sold in Europe is a Gunnebo SpeedGate

Gunnebo Capital Market Day March 10 2016, page 40

The Entrance Control Market

10.4% 9.9% 6.7% 6.0% 5.9% 4.3% 4.2% 4.0% 3.8% 3.5% 2.9% 2.7% 2.6% 2.4%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Annual Growth Rate by Market Segment 2014-2020 (%)

Gunnebo Capital Market Day March 10 2016, page 41

Public & Commercial Buildings

• Exposure to terrorism risks,

protection of people is key

• More single passage detection

required

• Demand for multi-resistant

products

• Special attention to risk of human

bombs

• Automatic control of people
• Research programmes funded by

EU

• Regulations for fire

High-Risk Sites

• Seveso 3 directive to be

implemented in Europe (10,000 sites )

• New security directive for nuclear

power plants (Fukushima directive)

• Special measures to be

implemented for utilities plants

• Regulations for fire additional to
• ther resistance levels

Security Doors & Partitions: Market Drivers By Segment

Gunnebo Capital Market Day March 10 2016, page 42

GUNNEBO’S OFFERING

How we help our customers

Gunnebo Capital Market Day March 10 2016, page 43

Entrance Control: Product Roadmap

• Enhance existing performance
• Differentiate through design
• Build more intelligence and connectivity
• Bundle “solutions” with other technologies

Gunnebo Capital Market Day March 10 2016, page 44

• 2. RFID reader in gate

Intelligent Gates: More Data, More Intelligence

• 1. Valuable equipment

tagged with RFID

• 3. Database matching

equipment with person

Gunnebo Capital Market Day March 10 2016, page 45

• New range of Security Revolving Doors
• New range of Security Booths
• New SpeedStile variants
• New range of Full-Height Turnstiles

Entrance Control: Product Launches in 2016

Gunnebo Capital Market Day March 10 2016, page 46

SECURITY DOORS SECURITY PARTITIONS/WINDO WS SECURITY AIRLOCKS SAFETY EQUIPMENT TRANSFER SOLUTIONS SECURED MOBILE UNITS

Manual Attack Resistant EN 1627 Manual Attack Resistant EN 1627 Public Reception Security Locks Paypoint Windows Mobile Bank Bullet Resistant EN 1522 Bullet Resistant EN 1522 Staff Access Single Passage Detector Transfer and Sliding Trays ATM Kiosk Blast Resistant EN 13123/4-1 Blast Resistant EN 13123/4-1 Automatic Doors Metal Detector Front Opening Counters Guard House Fire Resistant EN 1634-1 Modular Walling EN 1627 - 1522 Automatic Doors Transfert Unit

Security Doors & Partitions: Product Roadmap

TRANSFER SOLUTIONS Airtube system Software Transfer solution

Gunnebo Capital Market Day March 10 2016, page 47

Solutions for Electronic Article Surveillance: Gateway

RFID Store Assist Antennas (AM, EM, RF) People Counting Security Displays POS Monitoring

Gunnebo Capital Market Day March 10 2016, page 48

Electronic Security

Gunnebo Capital Market Day March 10 2016, page 49

Electronic Security: Market Drivers

• Increasing demand for

securing government risk sites such as energy & utility, nuclear, water supplies, military, etc.

• Strong demand for video

surveillance:

• Growth of IP
• Video analytics
• Changes in national security

regulations

• Need for integrated systems

for data analysis

• Focus on core activities with

automated security systems

Gunnebo Capital Market Day March 10 2016, page 50

GUNNEBO’S OFFERING

How we help our customers

Gunnebo Capital Market Day March 10 2016, page 51

Electronic Security: Access Control

Gunnebo Capital Market Day March 10 2016, page 52

Electronic Security: Video Surveillance

Gunnebo Capital Market Day March 10 2016, page 53

Electronic Security: Intrusion Detection

Gunnebo Capital Market Day March 10 2016, page 54

SOLUTIONS software

Gunnebo Capital Market Day March 10 2016, page 55

CASH MANAGEMENT ELECTRONIC SECURITY SAFES & VAULTS BANK RETAIL MASS TRANSIT PUBLIC & COMMERCIAL BUILDINGS ENTRANCE SECURITY How To Connect Solution Selling INDUSTRIAL & HIGH RISK SITES

Gunnebo Capital Market Day March 10 2016, page 56

Cash Management Electronic Security Safes & Vaults

BANK RETAIL MASS TRANSIT PUBLIC & COM BUILDINGS

Entrance Security How To Connect Solution Selling

INDUSTRIAL & HIGH RISK SITES

SOFTWARE INTEGRATION

Gunnebo Capital Market Day March 10 2016, page 57

The Interconnected Gunnebo Product Portfolio: Retail Example

Gunnebo Capital Market Day March 10 2016, page 58

The Interconnected Gunnebo Product Portfolio: Retail Example

Gunnebo Capital Market Day March 10 2016, page 59

KEY Account Management

Gunnebo Capital Market Day March 10 2016, page 60

What we will do:

• Strengthen and drive key account

management

• Utilize management to leverage large

potential accounts

• Use key account input for product

planning

• Structured follow-up through CRM

implementation

Key Account Management

What it will give:

• Make it easier to do business
• Help sales become more successful
• Replicate good solutions
• Drive the R&D agenda
• Find profitable growth

Gunnebo Capital Market Day March 10 2016, page 61

SERVICE delivery

Gunnebo Capital Market Day March 10 2016, page 62

What we will do:

• Implement a common process

for service execution

• Spread best practice of existing

solution

Service Delivery

What it will give:

• Create customer loyalty
• Make it easier to do

international business

• Help sales become more

successful

• Strengthen key account

capabilities

• Lower our cost

Gunnebo Capital Market Day March 10 2016, page 63

DRIVE productivity

Gunnebo Capital Market Day March 10 2016, page 64

How To Deliver Sustained Profitable Growth Hope and energy Resources for lean growth

Radical performance improvements Creation and pursuit

• f new opportunities

Radical improvements in resource productivity

Sweet Sour

Gunnebo Capital Market Day March 10 2016, page 65

Our cost cake: MSEK

V COGS ~3,600 F COGS ~500 Sales & Admin ~1,400 Other ~200 Total ~5,700 Gunnebo Total Cost Cake 2015

By main category: MSEK

Dir material ~2,000 37% Wage/salary ~2,300 40% Other ~1,400 23% Total ~5,700

Gunnebo Capital Market Day March 10 2016, page 66

Drive Productivity

+

• Productivity

Cost Increase / Inflation Price Reinvestment Earnings

Productivity should drive short & long-term growth

Gunnebo Capital Market Day March 10 2016, page 67

CASH for growth

Gunnebo Capital Market Day March 10 2016, page 68

Cash For Growth By implementing our key priorities we will over time:

• Tie up less inventory in the demand chain
• Improve our collection capabilities and reduce
• verdue A/R
• Leverage our procurement and negotiate better

terms This will improve our NWC % sales and we require less capital to grow our business

Inventory % sales 11 A/R % sales 19 A/P % sales 10 NWC % sales 20

Working capital 2015

Gunnebo Capital Market Day March 10 2016, page 69

IT/IS capabilities

Gunnebo Capital Market Day March 10 2016, page 70

• CRM capabilities
• Common master data
• Common processes – standard way of working
• Standardized ERP implemented

IT/IS Capabilities

Gunnebo Capital Market Day March 10 2016, page 71

DEMAND Chain

Gunnebo Capital Market Day March 10 2016, page 72

• Purchasing
• Engineering
• Manufacuring
• Logistics
• Sales
• Engineering
• Service
• Key Account Management

Build on:

• Good

communication

• Structured

forecasting

Results:

• Make / buy decision made by product owner

based on requirements

• Group purchasing leveraging total spend
• Group logistics optimized set-up with good

service and less capital intensity

• Cost/quality/service requirements clear
• Lean value chain

The Gunnebo Demand Chain

Gunnebo Capital Market Day March 10 2016, page 73

Purchasing:

• 2,000 MSEK
• Too many suppliers

Logistics:

• 650 MSEK inventory
• Too many warehouses

We will change this to:

• Improve the customer service
• Tie up less capital
• Lower our cost

Demand Chain Opportunities

Gunnebo Capital Market Day March 10 2016, page 74

EMPLOYEE engagement & performance culture

Gunnebo Capital Market Day March 10 2016, page 75

Highly engaged employees are

480%

more committed to helping their company

succeed

Source: Tempkin Research 2015

Employee Engagement

Highly engaged employees are

250%

more likely to recommend

improvements

Gunnebo Capital Market Day March 10 2016, page 76

STRATEGY ROADMAP The Priorities

Gunnebo Capital Market Day March 10 2016, page 77

Gunnebo’s Strategy Roadmap: The Priorities

SHAREHOLDER CUSTOMER PROCESSES EMPLOYEES

Meet our Financial Targets

Grow Product Areas Solutions Software Demand Chain Service Delivery Cash for Growth Employee Engagement & Performance Culture Drive Productivity Key Account Management IT/IS Capabilities Gunnebo Capital Market Day March 10 2016, page 78

Find a path of profitable growth

• Utilize our technology to better capture growth

per segment

• Improve key account management & service

delivery

• Strengthen the demand chain
• Focus on productivity
• Attract & retain good people
• Meet our financial targets

Key Takeaways

Capital Market Day 2016

Financial Update Susanne Larsson, CFO

Gunnebo Capital Market Day March 10 2016, page 80

Financial Goals

5%

Organic growth

• f at least 5%

7%

An operating margin

• f at least 7%

15%

Return on capital employed of at least 15%

30%

An equity ratio of no less than 30%

Gunnebo’s financial goals contribute to a good return for the Group’s shareholders and focus on profitable growth.

Gunnebo Capital Market Day March 10 2016, page 81

Gunnebo Performance Last 15 Years: Organic Sales Growth and Operating Margin

5%

Organic growth

• f at least 5%

7%

An operating margin

• f at least 7%

Gunnebo Capital Market Day March 10 2016, page 82

Gunnebo Performance Last 15 Years: Equity Ratio and Return on Capital Employed

Gunnebo Capital Market Day March 10 2016, page 83

How We Have Performed Against Our Targets

Average annual development over: 5 years Organic growth: 0.6% Operating margin: 5.8% ROCE: 12.0% Equity ratio: 38.6%

5%

Organic growth

• f at least 5%

7%

An operating margin

• f at least 7%

15%

Return on capital employed of at least 15%

30%

An equity ratio of no less than 30%

Gunnebo Capital Market Day March 10 2016, page 84

Gunnebo Result: 2014 and 2015

January – December, MSEK 2015 2014 Net Sales 6,052 5,557 Gross Profit excl non-recurring 1,800 1,675 Selling and Admin costs, excl non-recurring

• 1,401
• 1,326

Operating Profit, excluding non-recurring 397 366 Non-recurring items

• 77
• 14

Operating Profit 320 352 Net Profit 168 227 Gross Profit Margin, excl non-recurring, % 29.7 30.1 S&A % sales, excluding non-recurring, %

• 23.9
• 23.1

Operating Margin, excl. non-recurring, % 6.6 6.6 Operating Margin, % 5.3 6.3

Gunnebo Capital Market Day March 10 2016, page 85

December, MSEK 2015 2014 Intangible assets 1,812 1,675 Fixed assets 358 304 Inventories 678 694 Accounts receivables 1,150 1,125 Other assets 591 580 Cash 496 447 TOTAL ASSETS 5,085 4,825 Equity 1,747 1,694 Loans 1,353 1,067 Pensions 362 425 Accounts Payable 635 660 Other liabilities 988 979 TOTAL EQUITY AND LIABILITIES 5,085 1,694 Inventories % sales 11.2 12.5 A/R % sales 19.0 20.2 A/P % sales 10.5 11.9 Operating capital % sales 19.7 20.6

Gunnebo Balance Sheet: 2014 and 2015

Gunnebo Capital Market Day March 10 2016, page 86 * EPS adjusted for FBT sales 2014, and non-recurring items net 2014-2015

January - December 2015 2014 Return on capital employed, % 10.1 12.1 Return on capital employed, excl non-recurring items, % 12.4 12.6 Equity ratio, % 34 35 Debt/equity ratio, times 0.7 0.6 Earnings per share, SEK 2.18 2.98 Earnings per share adjusted *, SEK 2.56 2.29 Free cash flow, MSEK 56 223 Free cash flow per share, SEK 0.73 2.94

Gunnebo Key Figures: 2014 and 2015

Gunnebo Capital Market Day March 10 2016, page 87

Gunnebo’s Strategy Roadmap: The Priorities

SHAREHOLDER CUSTOMER PROCESSES EMPLOYEES

Meet our Financial Targets

Grow Product Areas Solutions Software Demand Chain Service Delivery Cash for Growth Employee Engagement & Performance Culture Drive Productivity Key Account Management IT/IS Capabilities Gunnebo Capital Market Day March 10 2016, page 88

• Be recognized as a leading global

provider of a safer future by customers, suppliers, competitors and employees

• Provide sufficient return to our

shareholders, for them to reinvest in

• ur company
• Generate sufficient cash flows to

finance investments, acquisitions and dividends

Sustainable Profitable Growth

Gunnebo Capital Market Day March 10 2016, page 89

ORGANIC sales growth

5%

Organic growth

• f at least 5%

Gunnebo Capital Market Day March 10 2016, page 90

Net Sales, MSEK

Gunnebo Capital Market Day March 10 2016, page 91

Organic Sales Growth, %

Full year Organic Growth

2015: 0% 2014: 2% 2013: 1%

Gunnebo Capital Market Day March 10 2016, page 92

• Organic growth in focus. A

prerequisite for sustainable profitable growth, fuelling productivity

• Clarity in our strategy and our

execution

• Product and business development

focus

• Handshake between product areas

and regions/operations

• Defined and established solution

software

• Efficient service delivery

Strategy Execution: Organic Sales Growth of at Least 5%

Gunnebo Capital Market Day March 10 2016, page 93

Operating PROFIT MARGIN

7%

An operating margin

• f at least 7%

Gunnebo Capital Market Day March 10 2016, page 94

Operating Profit, MSEK

Operating Profit Operating Profit, excl. non-recurring items

Full year Operating Profit

• excl. non-recurring

items

2015: 397 2014: 366 2013: 306

Operating Profit

2015: 320 2014: 352 2013: 222

* Operating Profit

• excl. non-recurring

items amounted to 98 MSEK in Q2 2014

*

Gunnebo Capital Market Day March 10 2016, page 95

Operating Profit Margin, %

Operating Margin %, Quarter Operating Margin % Quarter, excl. non-recurring items Operating Margin %, 12M Operating Margin % 12M, excl. non-recurring items

Full year Operating Margin,

• excl. non-recurring

items

2015: 6.6 2014: 6.6 2013: 5.8

Operating Margin

2015: 5.3 2014: 6.3 2013: 4.2

* Operating Margin,

• excl. non-recurring

items

2014 Q2: 6.9

*

Gunnebo Capital Market Day March 10 2016, page 96

Operating Profit, Regions and Group, excl non-recurring items

Gunnebo Capital Market Day March 10 2016, page 97

Strategy Execution: Operating Profit Margin of at Least 7%

• Focusing profitable growth in our

business

• Value selling helps us increasing price
• Productivity in product cost and S&A.

Drive excellence finding lean ways of working.

• Focusing on the full demand chain, its

effectiveness and cost

• Standardized and efficient IT/ERP

capabilities deployed

Gunnebo Capital Market Day March 10 2016, page 98

Our Cost Cake: Material and People

• Productivity initiatives

focusing material and people cover 75-80% of

• ur cost cake
• Need to ensure sustainable

productivity beyond inflation

• Restructuring initiatives to

provide a step change to impact cost cake long term

COGS and Opex 2015 2014 2013 2012 2011 Material 2,097 1,925 1,767 1,698 1,844 Employees 1,912 1,886 1,835 1,837 2,013 Temporary employee 374 311 293 325 346 Other than people and mtrl 1,347 1,175 1,162 1,194 1,176 Total operating costs 5,730 5,295 5,057 5,054 5,379 Operating costs excl mtrl 3,633 3,371 3,290 3,357 3,535 Material % total 37% 36% 35% 34% 34% Employees & temps % total 40% 41% 42% 43% 44% Employees & temps % total excl mtrl 63% 65% 65% 64% 67%

Gunnebo Capital Market Day March 10 2016, page 99

• Gross margins to be protected
• Value & solution selling to

motivate price

• Productivity in people and

material

• Global purchasing with supplier

consolidation and cost reduction

• Manufacturing footprint and

logistic network optimization

• Business excellence and lean

Gross Profit Margin Development

30.5% 30.0% 30.0% 29.6% 29.3% 28.0% 29.0% 30.0% 31.0% 32.0% 1,500 1,550 1,600 1,650 1,700 1,750 1,800 2011 2012 2013 2014 2015

Gross Profit 2011-2015

Gross Profit Gross Profit (%)

Gunnebo Capital Market Day March 10 2016, page 100

• Productivity focus, finding new

ways of working; shared service centres & support structures

• Clarified roles - who does

what

• Business excellence and lean

way of working

• Implementation of ERP

Selling and Administrative Margin Development

26.3% 26.5% 26.0% 24.9% 24.0% 22.0% 23.0% 24.0% 25.0% 26.0% 27.0% 28.0% 1,300 1,320 1,340 1,360 1,380 1,400 1,420 1,440 1,460 1,480 1,500 2011 2012 2013 2014 2015

Selling & Admin 2011-2015

Selling & Admin expenses Selling & Admin ratio (%)

Gunnebo Capital Market Day March 10 2016, page 101

Return on CAPITAL EMPLOYED

15%

Return on capital employed of at least 15%

Gunnebo Capital Market Day March 10 2016, page 102

Free Cash Flow by Quarter (MSEK)

Full year

2015: 56 2014: 223 2013: 144

Free Cash Flow 12M

Gunnebo Capital Market Day March 10 2016, page 103

Net Debt (MSEK)

Gunnebo AB Dividend paid 2012 Q2 76 2013 Q2 76 2014 Q2 76 2015 Q2 76

Gunnebo Capital Market Day March 10 2016, page 104

Return on Capital Employed of at Least 15% - Strategy Execution

• Ensuring ways of working are

standardized, efficient and well connected

• Implementing standardized processes in

ERP template

• Focusing on the full demand chain, its

effectiveness and cost

• Increased turnover of working capital

to support growth

• Decreased working capital release

cash for growth

Gunnebo Capital Market Day March 10 2016, page 105

Operating Working Capital Development

17% 18% 19% 20% 21% 22% 23% 24% 200 400 600 800 1,000 1,200 1,400 2011 2012 2013 2014 2015

Operating Working Capital 2011-2015 (MSEK)

Month end value Rolling 12 months Avg WC in % of R12 sales WC end value

• Reducing number of suppliers,

procurement costs and terms & conditions

• Simplifying the logistic

network and take out inventory and cost

• Implementing cost efficient
• rder to cash process providing

cash for growth

Gunnebo Capital Market Day March 10 2016, page 106

EQUITY ratio

30%

An equity ratio of no less than 30%

Gunnebo Capital Market Day March 10 2016, page 107

Equity Ratio of No Less Than 30%: Gunnebo’s Performance 2000 - 2015

Gunnebo Capital Market Day March 10 2016, page 108

Equity Ratio of No Less Than 30% - Strategy Execution

• Healthy profits
• Converting inventory, accounts

receivable and payable to cash faster

• Investing on par with depreciations
• ver a lifecycle
• Generating cash to finance investments,

acquisitions, pay dividends and reduce loans

Gunnebo Capital Market Day March 10 2016, page 109

Sustainable Profitable growth

Gunnebo Capital Market Day March 10 2016, page 110

• Holding company
• Island mentality
• Local processes
• Insufficient profitability
• Limited cash flow focus

Gunnebo’s Journey to Profitable Growth

2016-2020

• Operating company
• Global processes
• Standardized, lean way
• f working
• Customer focused
• Good profitablility
• Cash flow focus

FROM: TO:

Gunnebo Capital Market Day March 10 2016, page 111

We Have Defined the Strategic Priorities in a Strategy Roadmap

Gunnebo Capital Market Day March 10 2016, page 112

• Result
• Organic growth
• Productivity focus
• Standardized ways of working
• Global demand chain
• Balance sheet
• Inventory – logistic network optimization
• Accounts receivable - Order to cash process
• ptmization
• Accounts payable – supplier consolidation, cost and

terms & conditions

• Cash flow
• Result improvements
• Working capital efficiency

Sustainable Profitable Growth: Summary

15%

Return on capital employed of at least 15%

30%

An equity ratio of no less than 30%

5%

Organic growth

• f at least 5%

7%

An operating margin

• f at least 7%

Gunnebo Capital Market Day March 10 2016, page 113

Region EMEA

Morten Andreasen SVP EMEA

Gunnebo Capital Market Day March 10 2016, page 114

Region EMEA: Overview Net Sales 2015: 3,860 MSEK 64% of Group Sales 38% of Group EBIT

20 sales companies split into 8 sub-regions: Europe Central France Nordic South UK & Ireland EMEA Developing Markets Eastern Europe & CIS Middle East Africa 28% 26% 12% 11% 10% 6% 4% 2%

Sales by Sub-Region 2015

France Central South Nordics UK & Ireland Africa Middle East EE & CIS

Gunnebo Capital Market Day March 10 2016, page 115

Region EMEA: Overview - Europe Offering

• On mature markets in Europe,

we are developing from being a security equipment supplier to a security solutions provider

• More than 25% of sales comes

from services

• Biggest growing businesses are

within Electronic Security, Cash Management and Entrance Security

• Largest integrated security

solution projects are handled in France

Nordic

Gunnebo has its origins in Sweden and today has sales companies in Sweden, Denmark and Norway

Central

Sales companies in Germany, Austria, Belgium/Luxembourg, Netherlands and Switzerland Manufacturing of Safes & Vaults in Doetinchem (NL) and Markersdorf (DE)

South

Sales companies in Italy, Portugal and Spain Manufacturing in Lavis (IT)

• f Entrance Security and in

Binefar (ES) of Cash Management

UK & Ireland

Grown from the traditional safes & vaults business

• riginally under the 150

year-old Chubbsafes brand

France

Also grown from a traditional safes & vaults business known as Fichet-Bauche which originated in 1825 Manufacturing in Baldenheim of Entrance Security and in Bazancourt

• f Safes & Vaults

Gunnebo Capital Market Day March 10 2016, page 116

Region EMEA: Overview – Developing Markets Offering

• In the Middle East, the core

business is safes & vaults, electronic security and entrance security

• In Africa, safes & vaults and

entrance security are the main

• fferings
• In Eastern Europe, safes &

vaults and entrance security are the major product groups

• Poland is also the base for

Gunnebo’s global service team who carry out installations across the world. An example is all EU representations world wide.

Africa Based in South Africa with sales

• ffices in Nigeria and Kenya.

Covers sales to all African countries south of the Sahara. Manufacturing of Safes & Vaults and entrance Security in Wadeville (ZA) Eastern Europe & CIS Sales companies in Poland, Czech Republic and Hungary. Distributor network to a further 20 countries driven from Poland. Middle East Based in Dubai with sales

• ffices in Turkey, Oman

and Saudi Arabia. Covers 14 countries in the region.

Gunnebo Capital Market Day March 10 2016, page 117

• Stabilised topline
• Execution of restructuring programmes

helped to improve profit

• Continued good development of business

within solution sales and our targeted international customers (KAM)

• Good development within Cash Management,

Electronic Security and Entrance Security

• Sales to bank sector a continued challenge:
• Banks reducing branch networks
• Whole sector challenged by low interest rates

and increased regulation on e.g. liquidity

• Strong position in Central Banks through

projects with Central Bank of Oman and Central Bank of Ghana

Region Europe, Middle East & Africa

Full year MSEK 2015 2014 Order intake 3,836 3,620 Organic growth, % Net sales 3,860 3,644 Organic growth, % Operating profit/loss excl. non-recurring items 151 109 Operating margin excl. non-recurring items, % 3.9 3.0 Non-recurring items

• 67
• 1

Operating profit/loss 84 108

Region EMEA: 2015 in Summary

Gunnebo Capital Market Day March 10 2016, page 118

• Service efficiency
• Shared Services – sub-regional

centralization

• Bundling smaller organisations into one

bigger one to achieve critical mass

• Procurement and Logistics
• Individual Country restructuring
• Software Support to increase efficiency in

sales and administration

Activities to Improve Productivity in Europe

EMEA IAC Full year 2015

• -67 MSEK
• Transfer of production

from Trier (DE): -15 MSEK

• People reduction in Europe

Gunnebo Capital Market Day March 10 2016, page 119

Region EMEA: Macroeconomics Europe

• Positive GDP growth in 2015 for the second consecutive

year with 1.9% in EU and 1.6% in Euro Zone*

• Forecast is positive for 2016-2017**

Middle East and Africa***

• GDP growth in Africa was 4.5% in 2015 and projected at

5% in 2016

• GDP growth in the Middle East is stable at around 3% for

the second year running. Geo-political instability and low

• il price put pressure on the region.
• Central and Eastern Europe has grown at seven-year-high

3.3%. Projected to continue to grow at 3.1% in 2016.

*Source: European Economic Forecast **Source: The Economist ***World bank

Gunnebo Capital Market Day March 10 2016, page 120

Region EMEA: Market Trends

Western Europe

• Main drivers are economic

growth, increased standards

• f living and urbanisation
• Annual market growth

estimated at 2-3% Eastern Europe

• Increased investments in

construction, together with increased wealth among businesses and population in general, have been important market drivers

• Annual market growth

estimated at 3-4% Africa

• Main drivers are

urbanisation, economic growth, increased personal wealth and investments in physical and financial infrastructure

• Annual market growth

estimated at 6-8% Middle East

• Main drivers are economic

growth and increased personal wealth

• Trend towards increased

security for public and commercial buildings

• Annual market growth

estimated at 3-4%

Gunnebo Capital Market Day March 10 2016, page 121

Region EMEA: Bestsellers

Services Electronic Security Safes & Vaults Cash Management

Gunnebo Capital Market Day March 10 2016, page 122

Region EMEA: Customers

Gunnebo President & CEO Henrik Lange signs agreement on Cash Management with Transguard’s Dr Abdullah in Dubai, autumn 2015

• Main customer segment is Bank
• State-owned banks – stable business
• Private banks – contracting throughout Europe, but stable in

Middle East/Africa and EE/CIS

• Mass Transit & Airports
• Generally a stable business
• A growing market in airports, particularly due to emphasis on

boarding productivity, which Gunnebo with its new generation boarding gates is well equipped to handle.

• Retail (& CIT)
• Hugh market with millions of Points of Sales. Some retailers live

with cyclical patterns, others – like food retailers – are stable. Overall a growing market.

• Increasing business for Gunnebo in this market, primarily with

Cash Management solutions.

• Public & Commercial Buildings
• Well-developed business in most markets
• Demand is increasing due to further need for protection
• Industrial & High-Risk Sites
• This market develops strongly, mainly due to increased threat of

terror and legislation for high risk sites.

• Gunnebo is well positioned to handle this market.

Gunnebo Capital Market Day March 10 2016, page 123

Region EMEA: Customers

Bank Retail Public & Commercial Buildings CIT Industrial & High-Risk Sites

Gunnebo Capital Market Day March 10 2016, page 124

• Italian supermarket chain, Conad

Pac 2000a, has signed a two-year agreement worth €3 million for the delivery of closed cash management systems

• 200 SafePay units will be delivered

to the retailer in a multi-year contract

• Conad is a leading retail store brand

in Italy and operates one of the country’s largest supermarket chains

• Conad currently has more than

1,200 supermarkets and is continuing to expand its business

PRESS RELEASE: Italian Retailer Signs Cash Management Deal with Gunnebo

Gunnebo Capital Market Day March 10 2016, page 125

• Resource dedicated to following the

customer (lead KAMs) to ensure focus and coordination

• Develop and maintain long-term

business relationships

• Up-to-date on trends & developments
• n customer’s market
• Qualitative input to our strategic

product development

• Recurrent revenue

Results: Enabled us to have +100 MSEK turnover in 2015 split by several countries with French BNP Paribas

Region EMEA: Developing the Business through International Key Customers

Gunnebo Capital Market Day March 10 2016, page 126

• BNP Paribas is a leading global French bank operating

in 75 countries with 189,000 employees and a turnover of €42.9 billion in 2015

• Gunnebo is providing security solutions to the bank

across several product areas

• Safes & vaults
• Entrance security with reinforced and interlocking doors
• Electronic security with integrated access and intrusion

alarm systems (SecurWave)

• Installation & services
• Our integrated solutions help secure people, premises

and cash at BNP sites primarily in France and Belgium

• Total orders value: +100 MSEK

CUSTOMER CASE: BNP Paribas

Gunnebo Capital Market Day March 10 2016, page 127

• Close monitoring of development in

key segments to be able to propose security solutions that fit the issues and opportunities on those markets Example

• The Industrial & High-Risk Sites

segment where pan-European legislation on high-risk sites called SEVESO sets requirements for minimising risk and vulnerability

• Gunnebo has relevant security

solutions to help sites comply with these regulations Results: Enabled us to have +20 MSEK turnover in 2015 with a gas infrastructure company in Italy

Region EMEA: Developing the Business through Prioritised Customer Segments

Gunnebo Capital Market Day March 10 2016, page 128

• Swedavia owns and operates ten airports

across Sweden, including Stockholm Arlanda and Gothenburg Landvetter

• As part of the Self-Service initiative to improve

the customer experience in airports, Swedavia has signed an agreement with Gunnebo for automated pre-security and boarding gates

• The gates will make it quicker and easier for

passengers to identify themselves when going through security checks and boarding aircraft

• Total order value: +30 MSEK

CUSTOMER CASE: Swedavia

Gunnebo Capital Market Day March 10 2016, page 129

Region EMEA: Developing the Business through Efficient Service Delivery

• Process optimization/replication
• Regional service organisations
• Shared backoffice/dispatch
• Quality improvements
• Service ”R&D”

Gunnebo Capital Market Day March 10 2016, page 130

• Contract based on:
• Nationwide bank branch maintenance
• 24/7/365 service, 2-hour response time
• Service Delivery and efficiency improvements:
• As part of new service operating model and

system implementation we implemented the following improvements:

• E-mail integration
• Automatic communication pre-approval invoices

process

• Standardized and automatic reporting
• Results:
• SLA fulfilment of 93% (90% target) and above

97% for critical calls

• 11% reduction in 2015 of call-out costs
• 22% of call reduction from 2012

CUSTOMER CASE: Service Contract UK Bank

"Performance is the strongest within the supply chain”

Customer Contract Manager

Gunnebo Capital Market Day March 10 2016, page 131

• Offering:
• Multi-client Remote Monitoring centre for Cash

Management systems

• Hosting of CashControl
• Proactive monitoring service of cash management

installed base

• Service Delivery and efficiency improvements:
• CashControl software with map console and sensors

in the systems

• Direct communication with users for quick action to

avoid further issues

• Early dispatching of technicians when needed
• Results
• Early identification of risks in the systems eliminates

the need for client calls

• Increased uptime of the systems
• Reduced total cost of ownership for clients

BUSINESS CASE: Remote Cash Monitoring in the Netherlands

Gunnebo Capital Market Day March 10 2016, page 132

Region EMEA: Brands

• GUNNEBO is used widely in the region within

Electronic Security, Entrance Security, Cash Management and Service

• Well-established business within Safes & Vaults

with banks in the region for more than 175 years under the Chubbsafes, Fichet-Bauche and Rosengrens brands

• Solutions within electronic article surveillance

marketed and sold under the Gateway brand

• Local tactical brands include Clear Image,

Churchill (UK) and Alltech (South Africa)

Gunnebo Capital Market Day March 10 2016, page 133

• Louis XIII Cognac, one of the world’s most

prestigious spirits brands, launched a highly creative campaign in 2015 entitled ‘100 Years – The Movie You Will Never See’

• One thousand guests from around the world

received an exclusive invitation for their descendants to attend the premiere in 2115

• To ensure that the film itself remains unseen

until that date, it has been placed in a uniquely designed Fichet-Bauche safe

• Fichet-Bauche was chosen by Louis XIII

Cognac due to the brand’s reputation as a world-renowned, high-end label BRAND CASE: Louis XIII Cognac

Gunnebo Capital Market Day March 10 2016, page 134

Region EMEA: Routes to Market

• In Europe, sales are carried out primarily via direct sales

to end customers through Gunnebo’s sales companies

• In Middle East & Africa, sales are primarily through

channel partners

• Gunnebo also sells big projects in close collaboration with

integrators and specifiers such as architects, security advisors, engineers, etc.

Gunnebo Capital Market Day March 10 2016, page 135

• Grow product areas
• Solution selling
• Key Account Management (KAM)
• Service delivery
• Productivity focus

Region EMEA: Key Activities to Profitable Growth

Gunnebo Capital Market Day March 10 2016, page 136

Region EMEA: Key Takeaways Europe

• Macroeconomic environment is improving

after a difficult period

• Stabilised sales
• Will grow topline by proposing integrated security

solutions to key international customers in defined high-growth segments

• Continued productivity focus

Middle-East

• Geo-political environment and low oil price

putting pressure on business climate

• Overall GDP growth remains high
• Will continue to develop big projects in central

banks (Electronic Security), Entrance Security and going forward Cash Management Africa

• Focus on strengthening indirect sales
• Starting up new business areas, e.g. within

Cash Management

Gunnebo Capital Market Day March 10 2016, page 137

Sales Region Americas

Daniel Schroeder, SVP Region Americas

Gunnebo Capital Market Day March 10 2016, page 138

Region Americas: Overview Net Sales 2015: 1,107 MSEK 18% of Group Sales 33% of Group EBIT

38% 20% 15% 15% 12% USA Canada Brazil Mexico Other countries

Sales companies: 4 North America Canada USA Latin America Brazil Mexico

Gunnebo Capital Market Day March 10 2016, page 139

Region Americas: Overview Offering:

• Safes & Vaults
• Drive-Up Systems
• Electronic Security
• Entrance Security
• Loss Prevention in Brazil –

electronic article surveillance (EAS), cash management and alarm systems for retail

USA

Hamilton Safe acquired in

• 2012. US’s second largest

provider of safes and vaults to banks and government. Local production in Cincinnati.

Brazil

Established in 1990s under Gateway

• brand. Acquired by Gunnebo in 2012.

Today a leading provider of Loss Prevention solutions to retailers.

Mexico

Sales company set up in 2013. Dissamex acquired in 2014 – electronic security services provider to most major national banks.

Canada

In business since 1960s. Originally established under Chubbsafes brand.

Gunnebo Capital Market Day March 10 2016, page 140

• Acquired 2012
• Strong regional footprint
• R&D and production capabilities
• Safes & Vault
• Cash Management
• Electronic Security
• Security Doors
• Hamilton Safe - Strong brand recognition
• Knowledge transfer across Gunnebo

product areas

Hamilton Integration

Gunnebo Capital Market Day March 10 2016, page 141

Region Americas: 2015 in Summary

• Strong organic growth of 8%
• Good sales of Loss Prevention solutions to

retailers in Brazil

• Continued growth in Electronic Security services

to national banks across Mexico

• Sale of Entrance Security solutions in USA also

positive

• Global portfolio expanding into new markets -

Cash Management offering introduced into USA, Canada and Mexico

• Strategic partnership made with systems

integrator in Brazil to open up business in new segments

Region Americas

Full year MSEK 2015 2014 Order intake 1,188 826 Organic growth, % 26

• 14

Net sales 1,107 884 Organic growth, % 8 Operating profit/loss excl. non-recurring items 131 117 Operating margin excl. non-recurring items, % 11.8 13.2 Non-recurring items

• 3
• 4

Operating profit/loss 128 113

Gunnebo Capital Market Day March 10 2016, page 142

*Source IMF World Economic Outlook January 2016

• Economic cycles of region’s countries in different phases
• 2016: growth in Canada, US and Mexico, but Brazil still in recession*
• Weakening oil price is deeply impacting Canadian economy and oil

producing states in the US

• Capital expenditures are increasing in Canada and Mexico

In the US, CapEx is increasing as a percentage of GDP In Brazil it is shrinking

• Inflation spans from 0.1% in the US to 8.9% in Brazil

Region Americas: Macroeconomics

Gunnebo Capital Market Day March 10 2016, page 143

Region Americas: Market Trends

North America Overall growth rate: 4-6%

• Demand expected to grow as bank sector recovers

after period of consolidation and branch closures

• Changes in competitive landscape
• Interesting opportunities on emerging cash management

market Latin America Overall growth rate: 5-7%

• Growth driven by:
• Increasing awareness of security needs
• Continued investment by national and multinational

companies in the region

• Increased interest in security solutions from

new customer segments

Gunnebo Capital Market Day March 10 2016, page 144

Region Americas: Bestsellers

Safes, Vaults and Drive-Up Systems Electronic Security Electronic Article Surveillance (EAS) Entrance Security and Security Doors

Gunnebo Capital Market Day March 10 2016, page 145

Region Americas: Customers

• Bank
• Leading provider of Electronic Security services to

banks in Mexico

• Leading provider to banks in the USA via Hamilton

Safes – safes, vaults, drive-up systems and more recently cash management

• Retail (& CIT)
• Major provider of Loss Prevention solution to

retailers in Brazil

• Electronic Security services in Mexico
• Public & Commercial Buildings
• Important segment in Canada for Entrance Security
• Hamilton Safes in USA a strong brand in public

administration sector

• Airport
• Important segment in Canada for Entrance Security

Gunnebo Capital Market Day March 10 2016, page 146

Region Americas: Customers

Bank Retail Other

Gunnebo Capital Market Day March 10 2016, page 147

• International DIY retailer, Leroy Merlin,

expanding presence in Brazil

• Gunnebo partnered with Leroy Merlin as single

supplier of complete portfolio of security solutions

• For flagship Tamboré store in São Paulo,

Gunnebo deployed a complete package of security solutions including electronic article surveillance anti-theft systems, CCTV, cash management and alarm monitoring

• Installation also included video analysis and

image monitoring equipment as well as people flow counters to provide useful data on footfall CUSTOMER CASE: Leroy Merlin, Brazil

Gunnebo Capital Market Day March 10 2016, page 148

• To safeguard the quality of its night

deposit service, CIBC had to ensure that ageing and damaged deposit heads were upgraded

• Gunnebo developed a deposit head

replacement solution, adaptable to virtually any of CIBC’s deposit machines

• This eliminated the need for the costly

replacement of the entire safe

• To date over 250 units have been

upgraded CUSTOMER CASE: Canadian Imperial Bank of Commerce (CIBC)

Gunnebo Capital Market Day March 10 2016, page 149

Region Americas: Brands

• GUNNEBO has been used as a brand in the

region for many years, together with other strong local brands

• HAMILTON SAFE is the dominant brand in USA

with a strong reputation amongst banks and public administration

• Well-established business within Safes & Vaults

in Canada under the CHUBBSAFES brand going back 60 years

• In Mexico business is now carried out under

the GUNNEBO brands

• In Brazil both the GATEWAY (electronic article

surveillance) and GUNNEBO brands are used

Gunnebo Capital Market Day March 10 2016, page 150

Region Americas: Routes to Market

• Safes & Vaults, Security Doors
• Channel Partners: USA
• Distributors: Brazil, Mexico
• Direct: Canada
• Cash Management, EAS
• Direct: Canada, Brazil, Mexico
• Distributors: USA
• Electronic Security
• Direct: Canada, Brazil, Mexico
• Distributors: USA
• Entrance Security
• Direct: Canada
• Distributors: Other markets

Gunnebo Capital Market Day March 10 2016, page 151

• Launch Cash Management
• Expand Electronic Security
• Grow Safes & Vaults
• Grow Security Doors & Partitions
• Grow Entrance Security

Region Americas: Key Activities to Profitable Growth

Gunnebo Capital Market Day March 10 2016, page 152

Region Americas: Key Takeaways

• Leverage our scale as region through

heavy focus of execution of the profitable growth strategy

• Integrate best practices to enable growth

in new customer segments

• Focus on introducing cash management
• Security market consolidation opens up

for new growth opportunities

• Productivity focus

Gunnebo Capital Market Day March 10 2016, page 153

Region Asia-Pacific

Sacha de La Noë SVP APAC

Gunnebo Capital Market Day March 10 2016, page 154

Region Asia-Pacific: 2015 in Summary

• General downturn in Asian economies
• Sharp drop in demand from Indian public sector

banks due to poor balance sheets while the private banks developed better

• Indonesia won Fire System project for the

largest pulp mill in Asia

• Strong development in China for Entrance

Security (metro and office buildings)

• Breakthrough in the important gaming industry

in Australia for Cash Management solutions

• Market for Cash Management outside Australia

is starting to develop with significantly more interest and enquiries across Asia

Region Asia-Pacific

Full year MSEK 2015 2014 Order intake 1,167 987 Organic growth, % 4 Net sales 1,085 1,029 Organic growth, %

• 8

Operating profit/loss excl. non-recurring items 115 140 Operating margin excl. non-recurring items, % 10.6 13.6 Non-recurring items

• 7
• 9

Operating profit/loss 108 131

Net Sales 2015: 1,085 MSEK 18% of Group Sales 29% of Group EBIT

Gunnebo Capital Market Day March 10 2016, page 155

Region Asia-Pacific: Market Overview Offering:

• Mainly Safes & Vaults and

Entrance Security

• A growing business in Fire

Systems and Cash Management

38% 20% 15% 15% 12% India Indonesia China Australia Other countries

Sales by market 2015

Gunnebo Capital Market Day March 10 2016, page 156

Region Asia-Pacific: Macroeconomics

• Average GDP growth in 2016 is projected at 5.5%

(IMF April 2015)

• Slower GDP growth in large economies such as China

and Indonesia

• General shortage of project financing during 2015
• Increased bad debt in Indian public sector banks
• Political stalemate in countries like India, Indonesia

and Malaysia

• The market is large and has many opportunities in various

segments, however market conditions are less favourable than in the past years

• Examples: still significant investments in mass transit; Cash

Management starting to move; increased security needs for public buildings and high risk sites; still low ATM density in India

Gunnebo Capital Market Day March 10 2016, page 157

Region Asia-Pacific: Market Trends

Overall growth rate: 6-8% Growth comes from:

• Urbanisation
• Increased wealth
• Public investments in infrastructure

FOR EXAMPLE: India

• Market growth due to economic growth, public infrastructure spending in

metros and airports, increased personal wealth and a growing population

• The financial inclusion programme, bringing over 150 million people into the

country’s banking system, puts demand on increased ATM penetration

• Number of branches growing, but at slower pace than in past years
• Central Bank has recently allowed 10 players to open small finance banks

China

• The world’s largest security market
• Large governmental investments into infrastructure for increased public safety
• Urbanisation drives demand on extended metro and airport networks

South Korea

• Fourth largest security market in the region
• Growth expected in the years to come due to investments in commercial

buildings and urbanisation

Gunnebo Capital Market Day March 10 2016, page 158

Region Asia-Pacific: Bestsellers

Safes & Vaults Entrance Security Fire Systems Cash Management

Gunnebo Capital Market Day March 10 2016, page 159

Region Asia-Pacific: Customers

• Main customer segment is Bank
• State-owned banks – business stabilising at lower level
• Private banks – growth potential
• Public & Commercial Buildings
• Well-developed business in most markets
• Demand expected to continue due to increased need for

protection

• Industrial & High-Risk Sites
• Well-developed business in Indonesia and India
• Interesting opportunities across the region e.g. Fire

Systems business opportunity outside Indonesia being evaluated

• Retail (& CIT)
• Well-developed business within Cash Management

in Australia

• Increased interest in Cash Management solutions in

markets outside Australia

• Mass Transit & Airports
• Well-established business in China
• A growing customer segment across the region

China Country Manager Chris Dai and Sacha de La Noë with Mr. Du from distributor Beijing Forgoal in Bank of China HQ, June 2015 Gunnebo Capital Market Day March 10 2016, page 160

Region Asia-Pacific: Our Customers

Bank Retail Public & Commercial/ Industrial Buildings Mass Transit

Gunnebo Capital Market Day March 10 2016, page 161

• OKI Pulp & Paper Mills, part of Asia Pulp &

Paper Group (APP), is building a new mill in South Sumatra, Indonesia

• Gunnebo supplying an integrated fire-fighting

solution to the new site covering an outdoor and indoor hydrant system, sprinklers, water sprays, fire pumps and fire alarm system, starting from the design up to installation, including testing, commissioning and

• maintenance. The systems will be installed in

40 buildings.

• The contract is EPC work where the system

delivery started end of July 2015 and is a multi-year contract

• Order value: $25 million

CUSTOMER CASE: OKI Pulp & Paper Mills

Gunnebo Capital Market Day March 10 2016, page 162

• Guanfu Museum in Shanghai Tower,

currently the tallest building in China and a new landmark in the city

• Gunnebo China has received orders to

deliver 18,698 safe deposit lockers and 15 vault doors

• The order values amounted to €2.2

million including delivery and installation CUSTOMER CASE: Guanfu Museum

Gunnebo Capital Market Day March 10 2016, page 163

• India is the second largest ATM market in the

world (after China)

• In 2012 Gunnebo started to build CEN safes for

NCR in India as the first CEN manufacturer in India

• Growth of ATM safes in India
• From 0 – 22,000 safes in three years!
• From 2016 also starting to supply to other ATM

providers in India with additional growth

• pportunities

CUSTOMER CASE: NCR ATM Safes for India

Gunnebo Capital Market Day March 10 2016, page 164

Region Asia-Pacific: Brands

• GUNNEBO is used widely in the region

within Entrance Security, Cash Management and Service

• Well-established business within Safes

& Vaults with banks in the region going back 80 years under the CHUBBSAFES brand

• SecureLine used as local tactical brand

within Safes in India & Indonesia

• Steelage, Minimax & GilPro: strong

local brands in India for Safes & Vaults and Fire Security

Gunnebo Capital Market Day March 10 2016, page 165

Region Asia-Pacific: Routes to Market Route to market varies by country India

• Direct – to private banks and key accounts
• Indirect – to government banks, public & commercial

buildings, governmental institutions, smaller customers etc. Indonesia

• Direct – most business is direct and is supported by
• ur strong branch network
• Indirect – mainly safes and part of extinguisher

business Other markets in the region

• Significant part of sales through distributors, system

integrators and other partners

Gunnebo Capital Market Day March 10 2016, page 166

Region Asia-Pacific: Marketing Activities & Investments in 2015

• In marketing & sales of Cash

Management solutions in the region

• Development of a new range of

safes, customised to fit needs of private consumers

• Continued investments in production

platforms in India, Indonesia & China

Gunnebo Capital Market Day March 10 2016, page 167

• Safes & Vaults recovery
• Grow Entrance Security
• Grow Cash Management
• Key Account Management
• Dealer management
• Explore new business opportunities

Region Asia-Pacific: Key Activities for Profitable Growth

Gunnebo Capital Market Day March 10 2016, page 168

Region Asia-Pacific: Key Takeaways

• The market is large and has many opportunities in

various segments, however market conditions are less favourable than in the past years

Focus areas to get back to profitable growth:

• Develop new market segments for Safes & Vaults
• Build on strong position in Entrance Security and

develop key segments

• Capture momentum in Cash Management as the

market develops

• Productivity focus

Gunnebo Capital Market Day March 10 2016, page 169

Summing UP

Henrik Lange

President & CEO

Gunnebo Capital Market Day March 10 2016, page 170

Reflection: Why Gunnebo?

• We want to help create a safer world
• Broad product portfolio
• Long customer relationships
• Broad service capability
• Good knowledge of both software and

hardware

• Engaged employees

Gunnebo Capital Market Day March 10 2016, page 171

• Holding company
• Island mentality
• Local processes
• Insufficient profitability
• Limited cash flow focus

Gunnebo’s Journey to Profitable Growth

2016-2020

• Operating company
• Global processes
• Standardized, lean way
• f working
• Customer focused
• Good profitablility
• Cash flow focus

FROM: TO:

Gunnebo Capital Market Day March 10 2016, page 172

Gunnebo’s Strategy: Profitable Growth

The leading global provider of a safer future

Cash Management Entrance Security Electronic Security Safes & Vaults Software platform Employee Engagement & Performance Culture

The Group’s mission is to help create a safer world by offering security products, services and solutions that create value for shareholders, customers, partners, employees and society

Solution selling to key accounts in customer segments Operational excellence PRODUCT PILLARS

Gunnebo Capital Market Day March 10 2016, page 173

EMEA Asia-Pacific Americas

Safes & Vaults Cash Management Entrance Security Electronic Security

Operational P&L Responsibility Strategic Direction Product Roadmap R&D

Regional & Product Responsibility

Gunnebo Capital Market Day March 10 2016, page 174

Gunnebo’s Strategy Roadmap: The Priorities

SHAREHOLDER CUSTOMER PROCESSES EMPLOYEES

Meet our Financial Targets

Grow Product Areas Solutions Software Demand Chain Service Delivery Cash for Growth Employee Engagement & Performance Culture Drive Productivity Key Account Management IT/IS Capabilities

Gunnebo Capital Market Day March 10 2016, page 175

Find a path of profitable growth

• Utilize our technology to better capture growth

per segment

• Improve key account management & service

delivery

• Strengthen the demand chain
• Focus on productivity
• Attract & retain good people
• Meet our financial targets

Key Takeaways

Gunnebo Capital Market Day March 10 2016, page 176

Opportunity to learn our

• ffering in depth!

Join us in our Paris showroom! When? June 29th Where? Showroom in Velizy, Paris Sign up and more information: karin.wallstrom@gunnebo.com

Want to Explore More About Our Business & Offering?