Q EKORNES ASA November 16 th 2015

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1 Q3 215 EKORNES ASA November 16 th 215

2 Agenda Highlights Operational review Financial review Summary & outlook

3 Highlights Stable development in underlying operating revenue and margin Stressless Q3 revenue up year-over-year, but order reserve low Evolving Stressless distribution strategy, adding distributors New Stressless -products launched in October Strong development for IMG Improving, but still challenging for the Svane -segment

Stressless distribution strategy, adding distributors New Stressless -products

4 Financial results Operating revenue Operating earnings (EBIT) NOKm NOKm Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215

9 789.8 817.5 5 4 3 74.2 73.1 82.9 62.4 95.

5 Operational review

6 Segments operating revenue NOKm IMG Contract Svane Stressless Q3 214 Q4 214 Q1 215 Q2 215 Q3 215

7 Stressless Operating margin in line with Q3 214 Operating revenue and operating margin Revenues in local currency slightly up from Q3 214 NOKm % 2 15 Operating margin 12.6%, Q3 normally a strong quarter % 11.7% 1.4% 9.6% 12.6% 1 5 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215

586.6 6 655. 711.8 624.3 641.1 % 2 15 Operating margin 12.

8 Stressless Mixed development, distribution strategy evolved Q3 215 vs Q3 214: Other Nordic Norway Continued positive revenue UK/Ireland Japan development in Norway and Southern Europe Central-Europe Central-Europe, but growth USA/Canada/Mexico slowing Asia sales includes: China Southern-Europe and UK revenue Hong Kong Taiwan down Korea Singapore Contract/Other markets Challenging in the U.S. Malaysia Indonesia India Order reserve end of quarter NOK Mauritius 15 million vs NOK 237 million Australia / NZ Distribution strategy evolved Main collection split into two separate collections to enable marketing via different channels and adding of distributors

9 Stressless New products launched in October LegComfort

10 Stressless New products launched in October

11 Stressless Satisfactory production, but focus on improvement seats produced per day in Q3 215 Up from Q2, down vs seats per day FY 214. Lower production in October due to technical issues Production capacity at 1 75 seats per day Dependent on product mix New models to be introduced adding complexity Focus on production efficiency measures Low order reserve at the end of Q3

Lower production in October due to technical issues Production capacity at 1 75 seats per day

12 IMG Performing above expectations Operating revenue and operating margin Strong development for IMG Operating margin of 29.7% in Q3 exceeds expectations Positive effect from raw materials Increased prices Q3 sales slightly down from previous quarters NOKm % % % % % Nov+Dec 214 Q1 215 Q2 215 Q3 215

7% in Q3 exceeds expectations Positive effect from raw materials Increased prices Q3 sales

13 IMG Market fluctuations USA/Canada/Mexico Norway and Other Nordic Asia Pacific & Other Increase in Norway/Nordic and Australia US market down from a very strong Q2 Efforts to launch IMG in Central Europe are ongoing, but will not have any impacts on 215

Australia US market down from a very strong Q2 Efforts to

14 Svane Improvements but still challenging Decrease in revenue compared with Q3 214, high level of competition in Norwegian market Operating margin down from Q3 214, but improvements from Q2 this year Operating revenue and operating margin NOKm % %.8%.6% % % -15 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215

from Q2 this year Operating revenue and operating margin NOKm % 7 66. 67.5 62.

15 Ekornes Contract Decrease in revenue, increase in margin Decrease in operating revenue compared to Q3 214 Operating margin 12.9% in Q3 Operating revenue and operating margin NOKm % % % 13.2% 12.9% % Q3 214 Q4 214 Q1 215 Q2 215 Q3 215

9% in Q3 Operating revenue and operating margin NOKm % 18 15 16 15.6 16.

16 Financial results

17 Operating revenue NOKm 1 9 Operating revenue NOK million in Q3, up NOK million from Q Q Q Q Q Q3 215 Slight revenue increase in Stressless -segment Positive currency impact on revenue NOK 4 million Revenues IMG were NOK 11.6 million in Q3 Ekornes acquired IMG with effect from November 1st 214

5 Q3 215 Slight revenue increase in Stressless -segment Positive currency impact on revenue

18 Cost reduction program introduced in August 215 Objectives Reduce cost base by NOK 15 million run-rate by end 216 Improve earnings Improve flexibility and ability for innovation and growth Focus areas and progress All parts of Ekornes include Main focus on Stressless and Svane segments Program initiated in August 215 and progressing, but not expected to have impact on 215

growth Focus areas and progress All parts of Ekornes include Main focus on Stressless and

19 Operating earnings and operating margin NOKm % 9 1.8% 11.1% 1.1% 13.8% % % increase in operating revenue vs Q % increase in earnings % % % % % increase in earnings adjusted for IMG accruals IMG earnings at NOK 3.2 million, above expectations 1 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 EBIT % EBIT % before IMG accrual EBIT before IMG accrual EBIT

9 7.9% 62.4 11.7% 95.4 1 5 51.8% increase in earnings adjusted for IMG accruals IMG earnings at NOK 3.

20 Adjusted for IMG accrual the operating margin is up Contingent consideration purchase price IMG, accrual of NOK 17.3 million also in Q3, negative impact on operating earnings (IFRS) as expected Realization currency hedge in Q2 NOK million, negative impact on operating earnings Accrual for employee bonus in Stressless -segment in Q3, NOK 2.6 million, no bonus accrual in Q3 214

3 million also in Q3, negative impact on operating earnings (IFRS) as expected Realization

21 Earnings per share (EPS) NOK Negative currency impact from translation of balance sheet items EPS NOK 1.42 in Q3, up from NOK 1.3 in Q Q3 214 Q4 214 Q1 215 Q2 215 Q3 215

22 Cash flow NOKm Cash end of quarter NOK 185 million NOK 58 million decrease in short term debt in Q NOK 24 million investment in Q3 Cash EBT Paid taxes Depr. and other operational activities Change inventory, AR and AP Investment activities Net financing activities Cash

23 Financial position NOKm Compared to YE 214: Short term interest bearing debt NOK 458 million, up NOK 125 million Well within covenants Undrawn facilities close to NOK 35 million Current liabilities, excluding short term interest bearing debt, up NOK 75 million Current assets, excluding cash, up NOK 162 million Equity ratio 5.6%, down from 57.% 214 dividend of NOK 147 million paid in Q2 Decrease value forward contracts NOK 136 million Non-current assets Non-Current assets Other current assets Other current assets Cash Asset Cash Equity Equity Non-current liabilities Non-Current liabilities Current liabilities Current liabilities Equity and liabilities

24 Outlook and summary

25 Outlook Order receipts in October up vs. October 214, order reserve behind October 214 Order receipts up for Stressless -segment, down for Svane - and Contract-segment IMG order receipts in line with expectations No planned capacity changes in Q4, order situation monitored Focus on productivity improvements within production

26 Summary Stable development in underlying operating revenue and margin Stressless Q3 revenue up year-over-year, but order reserve low Evolving Stressless distribution strategy, adding distributors New Stressless -products launched in October Strong development for IMG Improving, but still challenging for the Svane -segment

27 Financial calendar Feb 17 th 216 Q4 presentation May 4 th 216 Q1 presentation Jul 15 th 216 Q2 presentation Nov 7 th 216 Q3 presentation General assembly May 3 rd (Ålesund) CEO: Olav Holst-Dyrnes [email protected] Mobile: CFO: Trine-Marie Hagen [email protected] Mobile: Presentations are held at Hotel Continental, Oslo - at 8. a.m.

Disclaimer. Telenor First Quarter 2010

Disclaimer. Telenor First Quarter 2010 Telenor First Quarter 2010 Jon Fredrik Baksaas, President and CEO Disclaimer The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be