Welcome to Gunnebos Capital Market Day 2016 Disclaimer - PDF document

Welcome to Gunnebo’s Capital Market Day 2016 Disclaimer 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 on 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. Gunnebo Capital Market Day March 10 2016, page 2

Today’s Agenda 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  Gunnebo Capital Market Day March 10 2016, page 3 Strategic Update Henrik Lange President & CEO Gunnebo Capital Market Day March 10 2016, page 4

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 5 The Global Security Market 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  Gunnebo Capital Market Day March 10 2016, page 6

Our Regions EMEA Asia-Pacific Americas 18% 57 % 7% 7% = Outside Europe Gunnebo Capital Market Day March 10 2016, page 7 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 8

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 9 The Gunnebo Group: Organisation President & CEO Henrik Lange CFO Human Resources Susanne Larsson Magnus Lundbäck Group Business Development Operations Tomas Wängberg Lars Thorén EMEA Asia-Pacific Americas Entrance Control Morten Andreasen Sacha de La Noë Dan Schroeder Robert Hermans Gunnebo Capital Market Day March 10 2016, page 10

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 11 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 12

Gunnebo’s Journey to Profitable Growth TO: FROM: Operating company  Holding company  Global processes  Island mentality  2016-2020 Standardized, lean way  Local processes  of working Insufficient profitability  Customer focused  Limited cash flow focus  Good profitablility  Cash flow focus  Gunnebo Capital Market Day March 10 2016, page 13 Gunnebo’s Strategy: Profitable Growth The leading global provider of a safer future 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 PRODUCT PILLARS Safes & Vaults Cash Management Entrance Security Electronic Security Solution selling to key accounts in customer segments Software platform Operational excellence Employee Engagement & Performance Culture Gunnebo Capital Market Day March 10 2016, page 14

Strategy and Strategic Priorities Gunnebo Capital Market Day March 10 2016, page 15 MEET financial targets Gunnebo Capital Market Day March 10 2016, page 16

Gunnebo’s Financial Targets Organic growth: 5%  5% 7% Operating margin: 7%  Return on capital employed: 15%  15% 30% Equity ratio: 30%  Gunnebo Capital Market Day March 10 2016, page 17 Performance against Financial Targets Organic growth: 5%  Average annual development over 5 years Operating margin: 7%  Organic growth: 0.6% Operating margin: 5.8% Return on capital employed: 15%  ROCE 12.0% Equity ratio: 38.6% Equity ratio: 30%  Gunnebo Capital Market Day March 10 2016, page 18

Meet Financial Targets Organic growth: 5%  5% 7% Operating margin: 7%  Return on capital employed: 15%  15% 30% Equity ratio: 30%  Gunnebo Capital Market Day March 10 2016, page 19 GROW product areas Gunnebo Capital Market Day March 10 2016, page 20

Regional & Product Responsibility Safes & Cash Entrance Electronic Vaults Security Security Management Americas Operational EMEA P&L Responsibility Asia-Pacific Strategic Direction Product Roadmap R&D Gunnebo Capital Market Day March 10 2016, page 21 Safes & Vaults Gunnebo Capital Market Day March 10 2016, page 22

Total Market Size and Forecasted Growth Annual Growth Rate 2013-2020 7 World Market for Safes & 6 Vaults 2013 22bn SEK % of Annual Growth Rate 5 4 31% 41% Americas (bn € ) 3 EMEA (bn € ) APAC (bn € ) 2 28% 1 Source: Safes and Vaults. “A Global Strategic Business Report” – May 2014 0 Americas EMEA APAC Gunnebo Capital Market Day March 10 2016, page 23 Total Market Size and Forecasted Growth: ATM Market Number of ATMs 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 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 Gunnebo Capital Market Day March 10 2016, page 24 Source: Global ATM Market and Forecasts to 2018, published by RBR in Aug 2013

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 25 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 26

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 27 PRODUCT ROADMAP Gunnebo Capital Market Day March 10 2016, page 28