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Mekonomen: Interim report January - March 2016

1 January - 31 March 2016 1)

? Revenue increased 3 per cent to SEK 1,424 M (1,382) and has been
negatively affected by Easter. Excluding the acquisition of Opus
Equipment, revenue increased 1 per cent. Adjusted for currency
effects and calculated on the comparable number of workdays, revenue
increased 9 per cent. Sales in comparable units rose 4 per cent.

? EBITA amounted to SEK 149 M (169) and the EBITA margin was 10 per
cent (12).

? EBIT amounted to SEK 121 M (142) and the EBIT margin was 9 per cent
(10). MECA's export business to Denmark had a negative impact of SEK
5 M on EBIT.

? The gross margin was 54.2 per cent (55.5).
? Earnings per share, before and after dilution, amounted to SEK 2.28

? Cash flow from operating activities rose to SEK 30 M (neg: 47), of
which discontinued operations comprised a negative amount of SEK 3 M
(neg: 84).

? Net debt at the end of the period amounted to SEK 1,624 M (1,693),
compared with SEK 1,626 M at year-end.

1) During the first quarter of 2015, the last two stores in Denmark
were discontinued and the Danish store operation is presented in the
2015-2016 interim reports in accordance with IFRS 5, Non-current
Assets Held for Sale and Discontinued Operations. The Danish store
operations were previously included in the MECA segment. With the
exception of cash flow and net debt, all amounts pertain to
continuing operations.

CEO's comments
Favourable underlying growth but weaker result

Underlying growth for Mekonomen Group remained favourable in the first
quarter, despite negative Easter effect. EBIT was lower compared with
the first quarter of 2015, a main cause being a weak EBIT in
Mekonomen Sweden.

The Group's revenue rose 3 per cent in the first quarter, representing
favourable underlying growth of 9 per cent. As in the fourth quarter,
growth was driven in the Group primarily of sales to affiliated and
other workshops. Sales of our proprietary brand, ProMeister, was good
and in the first quarter, sales of ProMeister accounted for some 12
per cent (10) of the Group's combined spare parts sales.

EBIT declined to SEK 121 M (142). In addition to the negative effect
of Easter, operating profit was affected by weak profitability of
Mekonomen Sweden, the loss in Denmark and a lower gross margin of the
Group, mainly driven by an unfavourable product mix.

In the first quarter Mekonomen Sweden stands for the largest negative
impact on EBIT, where negative effect of lower gross margin is not
sufficiently offset by increased sales. After the reorganisation that
was implemented in late 2015, we still do not see that new working
methods and the introduction of retail store system have the desired
effect on sales.

The negative product mix effect is mainly a seasonal effect in the
first quarter.

The loss in Denmark during the first quarter was halved, compared with
the end of 2015, and we have a continued focus on cost efficient
increase of sales in Denmark.

MECA's EBIT in the first quarter, excluding Denmark and the acquired
business Opus Equipment, was largely in line with the preceding year,
despite fewer workdays. EBIT for Sørensen og Balchen, in local
currency, was in line with the preceding year. Mekonomen Norway had a
lower gross margin due to consumer campaigns, which adversely
affected EBIT.

We expect conditions for a slightly stronger overall market in 2016,
primary as a consequence of favourable new car sales in the recent
years. For Mekonomen Group, the main potential for a stronger market
is linked to a growing fleet of cars aged three years and older.

Focus 2016
In 2016, the sales growth is our main focus. Our cost reduction
programs have been implemented according to plan and in 2016 we put
our energy to increase the total sales. We continue to see the most
potential for growth in our core business to B2B customers. A
particular focus is the growth in Mekonomen Sweden, where new working
methods with increased presence at customer is expected to give
positive effects. Parallel to this, we will intensify our marketing
efforts in Mekonomen Sweden. Continued priority in 2016 is to cost
effective increase sales in Denmark.

Our projects for the group-wide e-commerce platform for B2B and B2C,
and for enhancing quality in our workshops continue as planned.

With our combination of strong offerings, new initiatives and a
customer focus, Mekonomen Group is positioned for profitable growth
in 2016. Magnus Johansson President and CEO

For further information, please contact:
Magnus Johansson, President and CEO, Mekonomen AB, tel: +46 (0)8-464
00 00

Per Hedblom, CFO Mekonomen AB, tel: +46 (0)8-464 00 00
The information in this interim report is such that Mekonomen AB
(publ) is obligated to publish in accordance with the Securities
Market Act. The information was submitted for publication on 11 May
2016 at 7:30 a.m.


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