Revenues, MSEK Revenue growth, % Equity, MSEK Return on equity, % (MSEK) 450 (MSEK) 505 (MSEK) 18 15% 13% 11% 9% 7% 5% 3% 1% -1% -3% -5% 25%

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1 Revenue amounted to MSEK (410.6), -3.0%. Operating profit amounted to MSEK 14.9 (22.0) with an operating margin of 3.7% (5.4). Non-recurring costs impacted operating profit by MSEK 12.3 (1.2). Net income amounted to MSEK 11.3 (15.0) and earnings per share were SEK ( ). Cash flow from operating activities amounted to MSEK 59.5 (48.1). Revenue increased to MSEK (1,379.6), 0.3%. Operating profit increased to MSEK 49.4 (31.5) and operating margin to 3.6% (2.3). Non-recurring costs impacted operating profit by MSEK 12.3 (9.5). Net income amounted to MSEK 37.4 (19.4) and earnings per share were MSEK ( ). Cash flow from operating activities amounted to MSEK 77.6 (59.6). It is proposed that a dividend of SEK 0.35 (0.20) per share be paid. The total dividend amounts to MSEK 22.4 (12.8). 15% 13% 11% 9% 7% 5% 3% 1% -1% -3% -5% (MSEK) Q1-14 Q2-14 Q3-14 Q4-14 Revenues, MSEK Revenue growth, % 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% (MSEK) Q1-14 Q2-14 Q3-14 Q4-14 Operating profit, MSEK Operating margin, % 25% 20% 15% 10% 5% 0% (MSEK) Q1-14 Q2-14 Q3-14 Q4-14 Equity, MSEK Return on equity, % 1 ) Earnings per share are the same before and after dilution, since there are no outstanding warrants or convertibles that can lead to dilution. SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

2 When we look back at 2014, we see a year when we built up a robust and profitable business. It is true that we still have a way to go to reach our financial targets, but our margins improved in 2014 and we ended the year with a strong cash flow from operating activities of MSEK 77.6 (59.6). Net income was MSEK 37.4 (19.4) for the year as a whole, which is a significant improvement. The reasons why profit improved in 2014 include us adapting our resources in the organization, adjusting prices and removing of unprofitable products. We have prioritized profitability and this has had an impact on growth. Although sales fell compared to the same quarter last year, we reported slight growth for the year as a whole. Our underlying income is strong, particularly when you take into account the non-recurring costs in the final quarter of the year that came to MSEK Most of this was for additional provision for osbolete inventory and costs for the Nima integration. Investing in the future As well as removing articles from our range, we have invested in private label. Swedol s own clothing collection, Gesto, proved to be a huge success in 2014, so the natural next step for us is to expand our collection with work protection products. Swedol s product catalogue will be launched on 18 February and includes a brand new, extensive range. It is great value for money and contains vehicle lighting from Swedol s own brand Award. A decision was taken in the final quarter to increase the capacity of our automated warehouse management system Autostore, at Swedol s logistics centre. This increase in capacity will not only improve cost effectiveness, it will also improve Swedol s delivery reliability as we continue to grow in the future. This expansion will take place in the spring and summer of Another initiative this fall was to evaluate our current distributor network and sign new agreements. We have decided to work more closely with specific distributors, which includes special training for them, joint marketing initiatives and guidelines on our range. These distributors have become Swedol Partners. Next step Better customer awareness, customer segmentation and an increase in customer activities these are just a few of the tools we are using to become the partner that can best meet the needs and preferences of professional users. We have strengthened and reorganized our sales and marketing organization to create the best environment for growth. We have structured this organization based on stores, e- commerce and field sales, with four customer segments. We now have more field sales representatives and more are on the way. In the spring we are going to launch Swedol s new store concept, which aims to increase sales in our existing stores. We are going to start by refurbishing our stores in Hisings Backa and Järfälla. We will then evaluate our progress and move on to other stores. At the time of writing we are also looking at opportunities to establish new stores. Swedol now has a solid foundation and growth is our next step. With healthy profits and a pro-active marketing plan, our vision for 2015 is a year of growth and continued profitability. We have prioritized profitability and this has had an impact on growth Clein Johansson Ullenvik, CEO Swedol introduced a new sales and marketing organization. The sales work is organized using four different pillars customer segments, stores, field sales and e-commerce. A decision was made to increase the number of field sales representatives. An agreement has been signed to sell the real estate company Fastighetsaktiebolaget Pistolvägen 4, which owns the property where Nima still runs operations. This sale will take place in March The markets are undergoing an ongoing restructuring process and the retail chains are increasing their market shares. Most of the retail chains primarily target either corporate or private customers. Swedol s competitors are mainly active within the customer segment corporate customers. The positive trend in the pattern of demand on the professional market at the start of the opening quarters of the year planed out during the second quarter and is largely adjudged to have remained unchanged during the third and Swedol operates in Sweden and Norway via own stores, e- commerce, mail order catalog, phone and salespersons. The bulk of sales come from the company s 41 own stores in Sweden, which are geographically dispersed throughout the country, as well as six own stores in Norway. During the period from January to December 2014, no new stores were opened on the Swedish or Norwegian market. At the end of the period, there were 47 (47) stores, 41 (41) in Sweden and 6 (6) in Norway. (MSEK) Estimated market size Sweden Norway SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

3 fourth quarter. There has been weak growth in demand in Swedol s customer group. A wait and see tendency in customer purchase behavior that started to appear in the second quarter seems to have become more accentuated in the third and fourth quarter. Underlying factors are partly a fall in sales to private customers which reflects the fact that our strategic orientation is now clearly aimed at professional customers with associated modifications to our product range and marketing. Sales amounted to MSEK compared to MSEK during the same period last year, a decrease of 3.0%. Sales in the Swedish market continued to show weak growth during the quarter, partly due to a decline in the Swedol Days marketing event. Swedol s sales in Norway showed strong growth in line with previous quarters, primarily on the back of the early development phase the stores are in. There was the same number of working days in the quarter as the comparison period. Store sales as a proportion of total sales rose to 89.8% (88.9) during the period Sales are divided in accordance with the following sales areas (MSEK): Oct Dec 2014 Oct Dec 2013 Change Change local currency Sweden % -4.2% Norway % 17.8% Total % The decrease in sales of -3.0% breaks down as follows: Comparable stores* (47) in local currency -1.8% Non-Comparable stores*(0) in local currency 0.0% Distance trade -1.3% Foreign exchange gain/loss 0.1% Total -3.0% *Comparable stores refer to stores which were open during the entire period referred to in this context, that is, both during the current and previous year. The 47 comparable stores (all stores in Sweden and Norway) saw a decrease in sales by an average of 2.0% during the fourth quarter of the year. Gross profit amounted to MSEK (142.7) with a gross margin of 35.7% (34.8). The weaker Swedish krona had a negative impact of around MSEK 2 on purchasing prices during the quarter compared to the same period in the previous year. The gross margin has also been adversely affected by non-recurring costs for additional provision for obsolete inventory of around MSEK 7.5 (0.5), which was decided following a review and adjustment of the company s procedures for managing obsolete inventory. The effect of sales costs on revenue fell by 1.7 percentage points, and administration costs by 0.3 percentage points between the periods. The change in sales costs was adversely affected by non-recurring items amounting to MSEK 4.8 (0.7) for writing down the property at Pistolvägen, Örebro, renegotiating the lease agreement, and integrating Nima. The items Other expenses and Other income are primarily related to foreign exchange rate gains/losses on balance sheet items. Deprecation for the period amounted to MSEK 6.7 (8.4). Operating profit amounted to MSEK 14.9 (22.0). The weaker development in profit may be the result of the nonrecurring costs in the quarter, which amounted to MSEK 12.3 (1.2). The operating margin fell to 3.7% (5.4). Sales amounted to MSEK 1,383.3 compared to MSEK 1,379.6 during the same period last year, an increase of 0.3%. Store sales as a proportion of total sales rose to 89.3% (87.8) during the period. Revenue for the 46 comparable stores increased by an average of 1.4% in the period January December. Total store revenue was up by 2.0% compared to the same period of Sales are divided in accordance with the following sales areas (MSEK): Jan Dec 2014 Jan Dec 2013 Change Change local currency Sweden 1, , % -0.9% Norway % 24.7% Total 1, , % The increase in sales of 0.3% breaks down as follows: Comparable stores* (46) in local currency 1.3% Non-Comparable stores*(1) in local currency 0.5% Distance trade -1.5% Foreign exchange gain/loss 0.0% Total 0.3% *Comparable stores refer to stores which were open during the entire period referred to in this context, that is, both during the current and previous year. Gross profit rose to MSEK (497.8) with a gross margin of 37.3% (36.1). The weaker Swedish krona had a negative impact on purchasing prices of around MSEK 4 during the second half of the year compared to the same period in the previous year. The gross margin was also adversely affected by non-recurring costs of MSEK 7.5 (2.0); please see the section on the quarter. 17.3% (18.3) 13.6% (13.7) 10.2% (11.1) 13.8% (13.8) 4.4% (4.4) 30.2% (30.5) 20.7% (19.3) 89.8% (88.9) Electrical goods Personal Protect Equipment Consumables Tools Vehicle Accessories Miscellaneous Stores Distance trade SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

4 The effect of sales costs on revenue increased by 0.1 percentage points, while administration costs decreased by 0.3 percentage points between the periods. The change in sales costs was adversely affected by non-recurring costs of MSEK 4.8 (6.7); please see the section on the quarter. The items Other expenses and Other items are primarily related to foreign exchange gains/losses on balance sheet items. Deprecation for the period amounted to MSEK 27.1 (28.4). Operating profit rose to MSEK 49.4 (31.5). The positive development in profit can mainly be attributed to a higher gross margin and good cost control. Non-recurring costs impacted operating profit by MSEK 12.3 (9.5). Spot prices for the most important currencies were on average 6.86 for USD, 9.10 for EUR and 1.09 for NOK compared to 6.51, 8.65 and 1.11 for the same period in the previous year. Currency hedging was done in USD and EUR. Company policy is to hedge 50% of the expected flow in 7 12 months and 70% in 0 6 months. Cash flow from operating activities for the period January December 2014 increased to MSEK 77.6 (59.6) compared to the same period in the previous year. The positive increase in profits compared to the same period last year has compensated for unchanged inventory levels in the current period. Cash flow from investment activities amounted to MSEK 18.8 (19.1); please see Investments below. Dividends of MSEK 12.8 (22.4) were paid in the second quarter. Compared to the same time last year, inventories remained unchanged at MSEK (359.5). Cash and cash equivalents amounted to MSEK 2.8 (4.7). At the end of the reporting period, available cash and cash equivalents including an unutilized credit facility amounted to MSEK 88.7 (48.7). Interest-bearing liabilities totaled MSEK (153.5). The Group therefore has an interest-bearing net liability of MSEK (148.8). The equity ratio is estimated at 60.4% (57.4). During the period January December 2014 investments in fixed assets amounted to MSEK 18.8 (12.1), of which MSEK 7.0 refers to logistics and IT related investments such as a new e-commerce platform and otherwise to a store relocation and other store-related investments. Sales have historically exhibited some seasonal fluctuations. During the 2014 calendar year, 47.9% (47.0) of invoicing was generated in the first half and 52.1% (53.0) in the second half of the year, with an emphasis on the final quarter which accounted for 28.8% (29.8) of total revenue for the year. The average number of employees during the period from January December 2014, rebased as full-time employees, was 500 (517) of which 118 (123) were women. Employee cutbacks are related to measures in the action program. The number of employees at the end of the fourth quarter was 493 (495). No related party transactions, besides those with group companies, have taken place for the period concerned. The Group consists of Parent Company Swedol AB and whollyowned subsidiaries Swedol Förvaltning AB ( ), Fastighetsaktiebolaget Pistolvägen 4 ( ) and Swedol Norge AS ( ). 94% (91) of the Group s net sales have been generated by Swedol AB during the period from January to December During the period the Parent Company sold goods and services to group companies for a total of MSEK 35.8 (31.4). (MSEK) Q4-12 Q1-13Q2-13Q3-13 Q4-13Q1-14 Q2-14 Q3-14 Q4-14 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% Swedol s store in Karlstad Revenues, MSEK Operating margin, % Swedol s store in Karlstad SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

5 Swedol s activities entail a number of risks that can have an adverse effect on the Group to a varying extent. Both strategic, operational, sustainability and finance-related risks can, in the short and long term, affect the possibility of attaining the targets in accordance with the business plan. The development of Swedol s work on risk management takes place continuously through constant inventory-taking of the Group s risk situation. The continuous work, which is managed through coordination and in a systematic manner, aims to quickly highlight new risks, limit the risk exposure and any possible impact in the event of a risk materializing. This work contributes to the strategic and operational management of the Group. For a detailed description of the Group s risks and management thereof, please refer to the annual report for 2013, pages and Note 15 for finance-related risks. Apart from the risks described in the annual report, no significant new risks have been identified. Swedol s class B shares are quoted on the Mid Cap list of NASDAQ OMX Stockholm. The share capital amounts to MSEK 9.6, divided between 6.4 million class A and 57.6 million class B shares, each with a quota value of 0.15 per share. Each class A share carries ten votes and each class B share one vote. AB Zelda is the only shareholder with a holding whose total voting rights exceed one tenth of the total voting rights in the company. There are no restrictions on the number of votes each shareholder may exercise at a general shareholder meeting. All shares have equal rights to dividends. Holders of class A shares can request conversion of their A shares to B shares. The share capital is unchanged compared to the preceding period. Sales in January amounted to MSEK (109.3), an increase of 3.6% compared to the same period in the previous year. Swedol offer a broad and attractive product range adapted to the needs and preferences of professional users. As a trade professional, choosing Swedol as your innovative partner, means you can source attractively priced products very efficiently. We focus on small and medium sized enterprises within Haulage and transport, Building and plant, Industry and workshop, and Agriculture and forestry. Products are sold through a multi-channel concept that includes own stores, e- commerce, mail order services, retailers and on-the-ground representatives. This concept is proving very attractive on our established markets and is unique of its kind. There is potential to expand the concept to new markets and new customer segments and increase our market shares on existing markets. There continues to be healthy growth potential for our existing stores. Swedol also envisages substantial long-term growth potential for new stores, but bases any expansion rate on prevailing market conditions. The company expects establishing its brand and market position in Norway to take time and that customer conversion rate, average purchase and revenues are expected to increase gradually in the next few years. It is Swedol s policy not to publish forecasts. Swedol share Swedol OMX Stockholm_PI Traded volume (thousands) Source: Nasdaq OMX Stockholm SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

6 The Board proposes to the Annual General Meeting a dividend of SEK 0.35 (0.20) per share for the year. The total dividend therefore amounts to MSEK 22.4 (12.8). The proposed dividend is equal to 59.9% of the company s net income. The current capital structure and profitability are assessed as adequately providing scope for the proposed dividend, taking into account the requirements that the nature, scope and risks of the operations place on the equity and liquidity of the parent company and the Group. The company s total distributable funds amount to MSEK (304.9) and the equity ratio amounts to 60.4% (57.4). This is assessed as being an adequate ratio, even taking into account the future development. At the end of the year available cash and cash equivalents including unutilized overdraft facilities amounted to MSEK 88.7 (48.7). The consolidated financial statements of the Swedol AB Group have been prepared in accordance with IAS 34 Interim Financial Reporting and International Financial Reporting Standards (IFRS) as adopted by the EU, as well as the relevant International Accounting Standards (IAS) and current interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and Standing Interpretations Committee (SIC). In addition, the consolidated financial statements comply with the Swedish Financial Reporting Board s recommendations RFR 1 Supplementary Accounting Rules for Groups and the Annual Accounts Act (ÅRL). The financial statements of the Parent Company have been prepared in accordance with RFR 2 Accounting for Legal Entities and the Annual Accounts Act. Swedol AB also complies with NASDAQ OMX Stockholm s regulatory framework for issuers with attachments and statements issued by the Swedish Financial Reporting Board. The same accounting principles and calculation methods have been used in the interim report as in the most recent annual report except for the parent company where hedge accounting is now applied. This change has no effect on the group. The Board and the CEO hereby certify that this interim report provides a true and fair picture of the business activities, financial position and results of the Parent Company and the Group, and describes the significant risks and uncertainties to which the Parent Company and the Group companies are exposed. Stockholm, 17 February 2015 John Zetterberg Rolf Zetterberg Jon Pettersson Chairman Lotta Lundén Gert Karnberger Clein Johansson Ullenvik CEO This report has not been subjected to a review. The information contained herein is such that Swedol AB (publ) is required to publish pursuant to the Swedish Securities Market Act (2007:528). This report has been made up in both Swedish and English. In the event of divergences between the two, the Swedish version shall take precedence. The information was submitted for publication in Swedish on 18 February 2015, 8.50 a.m. CET. SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

7 Vision Swedol is the partner that best meets the needs and preferences of professional users. Business concept We offer high quality products and services in a simple yet professional way. As a trade professional, choosing Swedol as your innovative partner, means you can source attractively priced products very efficiently. Value drivers As an enterprise, Swedol benefits from the growing demand from business and private customers for a broad range of attractive products designed for professional users. Value drivers for the company also include external factors such as customer quality demands, market trends, and internal factors such as purchase costs, logistics management and our ability to establish and improve sales channels. Strategic aims We aim to create profitable growth both organically and via acquisitions. We aim to develop attractive and differentiating offers for our selected customer segments. We aim to build Swedol as a strong and consistent brand in all our sales channels. We aim to have efficient and quality assured processes. We aim to be a genuinely sustainable company. We aim to be an attractive employer with enthusiastic and knowledgeable employees. Financial targets Long term financial targets will be reviewed over a business cycle and amount to: Revenue growth: 15% Operating margin: 11% Return on equity: 25% Sustainability Sustainability plays a significant role in Swedol s business activities and we take our corporate social responsibility as self-evident in relation to our stakeholders. We strive continuously to ensure we are a genuinely sustainable company by taking every aspect of our corporate social responsibility seriously. Equity ratio: 40% Dividend ratio of profit after tax: 30 50% Business model The Swedol business model seeks to offer an attractive and broad range in several complementary sales channels. We focus on four selected customer segments. Four customer segments An enhanced customer experience Efficient processes Right range Efficient logistics and good stock levels Store E-commerce and field sales Haulage and transport Swedol is the partner that best meets the needs and preferences of professional users Building and plant Distributors Industry and workshop Agriculture and forestry SWEDOL INTERIM REPORT 1 JANUARY 30 SEPTEMBER

8 Group income statement and other comprehensive income Oct Dec Oct Dec Jan Dec Jan Dec Amounts in MSEK Revenue , Cost of sales Gross profit Other income Selling expenses Administrative expenses Other expenses Operating profit Net financial items Profit before tax Income tax expense Profit for the period Other comprehensive income for the period: Items that may be reclassified to income statement: Exchange differences on translation of foreign operations Cash flow hedges Deferred income tax relating to cash flow hedges Items that will not be reclassified subsequently to income statement Other comprehensive income for the period, net of tax Total comprehensive income for the period Data per share Earnings per share, before and after dilution (SEK) Average number of shares, before and after dilution 64,000,000 64,000,000 64,000,000 64,000,000 1 Earnings attributable to the Parent Company s shareholders Group statement of financial position Amounts in MSEK ASSETS Intangible assets Property, plant and equipment Deferred tax assets 3.1 Total non-current assets Inventories Trade receivables Other current receivables Current tax assets Financial derivatives Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Equity (attributable to Parent Company shareholders) Long-term borrowings Deferred tax Total non-current liabilities Trade and other payables Short-term borrowings Other current non-interest bearing current liabilities Financial derivatives Current tax payable Total current liabilities TOTAL EQUITY AND LIABILITIES SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

9 Group statement of changes in shareholders equity Amounts in MSEK Share capital Remaining capital contribution Retained earnings including net profit for the period Reserves Equity attributable to parent company shareholders Equity 1 January Comprehensive income Profit for the period Other comprehensive income Exchange differences on translation of foreign business Cash flow hedges after tax Dividend Equity 31 December Equity 1 January Comprehensive income Profit for the period Other comprehensive income Exchange differences on translation of foreign business Cash flow hedges after tax Dividend Equity 31 December Group cash flow statement Oct Dec Oct Dec Jan Dec Jan Dec Amounts in MSEK Profit before tax Adjustment for items not included in cash flow Changes in working capital Change in inventories Change in operating receivables Change in operating liabilities Cash flow from operations Net interest Income taxes paid Cash flow from operating activities Acquisition of subsidiary Purchase of property, plant and equipment Cash flow from investing activities Borrowings Amortizations Dividends paid Cash flow from financing activities Cash flow for the period Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

10 Key ratios OCt Dec Oct Dec Jan Dec Jan Dec Amounts in MSEK Margins Revenue growth, % Gross margin, % Operating margin, % Financial key ratios Return on average capital employed, % Return on average equity, % Equity ratio, % Capital employed, MSEK Dividend ratio of profit after tax, % Operational key ratios Gross investments, MSEK Depreciation, MSEK Cash flow from operating activities, MSEK Sustainability related key ratios Number of employees at end of period, number Average number of employees during the period, number Data per share Earnings, SEK Cash flow from operating activities, SEK Equity, SEK Dividends, SEK Share price on balance day, SEK Number of shares, thousands 64,000 64,000 64,000 64,000 Specification change in results Fourth quarter 2014/ full year 2014/2013 compared with corresponding period the previous year Oct Dec Jan Dec Jan Dec Amounts in MSEK Gross profit from increased sales Change in gross margin Change in gross profit Selling expenses (excl. depr.) Non-recurrent costs Other operational expenses Deprecation/disposal Change in operating profit Net financial items Income taxes Change in profit for the period Quarterly data Amounts in MSEK Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Revenues Cost of sales Gross profit Other operating expenses Operating profit Net financial items Profit before tax Key ratios Operating margin, % Profit margin Return on average equity, % Equity ratio, % Earnings per share, SEK Equity per share, SEK Cash flow from operating activities per share, SEK SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

11 Parent company income statement Oct Dec Oct Dec Jan Dec Jan Dec Amounts in MSEK Net sales , ,281.3 Cost of goods sold Gross profit Selling expenses Administrative expenses Other operating income Other operating expenses Operating profit Net financial items Profit after financial items Appropriations Profit before tax Tax on profit for the year Net profit for the period Parent company comprehensive income statement Oct Dec Oct Dec Jan Dec Jan Dec Amounts in MSEK Profit for the period Items that may be reclassified to income statement: Cash flow hedges Deferred tax related to cash flow hedges Items that will not be reclassified to income statement Other comprehensive income for the period, net after tax Total comprehensive income for the period Parent company balance sheet Amounts in MSEK ASSETS Intangible assets Property, plant and equipment Financial assets Deferred tax assets 2.3 Total non-current assets Inventories Current receivables Derivate instruments Cash and bank balances Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Restricted equity Non-restricted equity Equity Untaxed reserves Deferred tax liabilities Total long-term liabilities Current interest bearing liabilities Accounts payable - trade Current tax liability Other current non-interest bearing liabilities Total current liabilities TOTAL LIABILITIES AND EQUITY Pledged assets Contingent liabilities SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

12 Note 1 Fair value of financial instruments The fair value of the Group s financial assets and liabilities is estimated to be equivalent to its book values. The Group does not apply net accounting for any of its significant assets or liabilities. There were no transfers between levels or valuation categories during the period. Note 2 Merger The wholly owned operating subsidiary Nima Maskinteknik AB, corporate identity number: , was merged into Swedol AB on 1 April This merger has no effect on the group and has been reported according to the consolidated value method. Takeover net sales and operating profit on the merger date that is now part of the acquiring company's income statement for the period January December 2014 amounted to MSEK 12.9 and MSEK The merger difference has reduced equity in Swedol AB with MSEK The size of the balance sheet immediately before the transition to the acquiring company amounted to; Amounts in MSEK Non-current assets 3.6 Inventories 9.9 Receivables 7.7 Cash and bank balances 0.0 Total assets 21.2 Untaxed reserves 3.0 Liabilities 10.0 Total liabilities 13.0 Definitions Financial definitions Gross margin Operating margin Profit margin Equity ratio Earnings per share Return on average equity Return on average capital Capital employed Cash flow from operating activities per share Equity per share Sector concepts Comparable stores Swedol s private label Gross margin in percent of revenue. Operating profit as a percentage of revenue. Income after financial items as a percentage of revenue. Equity as a percentage of balance sheet total. Net earnings divided by the number of shares, adjusted to new issues and splits. Profit for the period (in full-year equivalents) as a percentage of average equity, i.e. the sum of equity at the beginning and the end of the period divided by two. Profit after financial items plus financial expenses as a percentage of average capital employed at the start employed of the period and the end of the period divided by two. Total assets less non-interest bearing liabilities and other allowances, including deferred tax liability. Cash flow from operating activities, divided by the number of shares adjusted for activities per share issue and share split. Equity divided by the number of shares adjusted for share issue and share split. Comparable stores refers to stores that, when compared to a specific period, have been open throughout the entire period. Covers Swedol s private label brands and products. SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER

13 Questions concerning the report can be addressed to: Financial calendar Interim report Jan Mar 2015 Interim report Jan Jun 2015 Interim report Jan Sep 2015 Year-end report Jan Dec May 2015, 3 p.m. CET 19 Aug 2015, 8.50 a.m. CET 11 Nov 2015, 8.50 a.m. CET 17 Feb 2016, 8.50 a.m CET Clein Johansson Ullenvik, VD Tel: clein.ullenvik@swedol.se Casper Tamm, CFO Tel: casper.tamm@swedol.se Annual General Meeting Annual General Meeting of May 2015 Store Store/Logistics center SWEDOL YEAR-END REPORT 1 JANUARY 31 DECEMBER