B&B TOOLS: Financial Report 2016/17 1 April 2016-31 March 2017

09.05.2017

• Revenue increased by 6 percent to MSEK 8,272 (7,821).
• Operating profitamounted to MSEK 323 (486), corresponding to an operating margin of 3.9 percent (6.2).
• Adjusted operating profit (excluding items affecting comparability)totalled MSEK 471 (471), corresponding to an adjusted operating margin of 5.7 percent (6.0).
• Net profitamounted to MSEK 237 (362).
• Earnings per sharetotalled SEK 8.40 (12.90).
• Cash flow from operating activitiesamounted to MSEK 406 (493), corresponding to cash flow per share of SEK 14.45 SEK (17.55).
• The return on working capitalwas 17 percent (26) and the return on equity was 9 percent (15).
• The operational net loan liability amounted to MSEK 260 (220) and the equity/assets ratioat year-end was 49 percent (51).
• A dividendof SEK 5.00 (5.00) per share is proposed.

• Revenue rose by 10 percent to MSEK 2,126 (1,935).
• An operating profit/lossof MSEK -35 (111) was reported and the operating marginwas -1.6 percent (5.7).
• Adjusted operating profit (excluding items affecting comparability)totalled MSEK 93 (111), corresponding to an adjusted operating margin of 4.4 percent (5.7).
• A net profit/lossof MSEK -28 (87) was reported.
• B&B TOOLS' profit was charged with a restructuring reserve of MSEK -94 in the annual accounts for 2016/2017.This reserve pertains primarily to the previously announced structural measures in TOOLS.
• Preparations for the separate listing of the Momentum Group operating segment on Nasdaq Stockholm in 2017 continue according to plan. Other items affecting comparability during the quarter amounting to MSEK -34 pertained to costs associated with the establishment of the two independent operating segments.

Acquisition of Arbesko - the leading Nordic brand for safety and work footwear.
On 3 April 2017, the Bergman & Beving operating segment acquired all shares in Arbesko Gruppen AB. Arbesko is the leading Nordic brand for safety and work footwear.

As we summarise the 2016/2017 financial year, we look back at another year of improvements in the Group that create good conditions for the continued development. It is particularly gratifying to highlight Momentum Industrial, Teng Tools and ESSVE, all of which achieved operating margins of more than 10 percent. As we reported in earlier interim reports during the year, TOOLS has implemented and will continue to implement robust measures to improve profitability and growth - including a well customised store network, strengthened digital sales channels, improved product range coordination and the establishment of its own central warehouse. Thanks to the restructuring reserve of MSEK 94 recognised in the profit for the 2016/2017 financial year, we can now accelerate these structural measures. The measures will contribute to an increased margin in the current and upcoming operating years.

As part of the focus on our future development, we have taken steps during the year to create the conditions to split the Group into two separate listed companies. The past year included numerous measures in our operations focused on separating the Group's joint functions, mainly into logistics, IT and finance, which were divided between the B&B TOOLS Group's two operating segments. The purpose of the split and separate listing of the Momentum Group operating segment is to increase the Group's earnings growth through an even clearer focus on the development of leading brands and attractive market channels in profitable niches.

In recent years, we have substantially improved our basic prerequisites for growth and development. With our strong balance sheet and low debt, we were able to carry out a number of interesting corporate acquisitions during the year, including Astrup Industrivarer, IQ Supplies and AAK Safety. After the end of the financial year in April, the Bergman & Beving segment also acquired Arbesko, the leading Nordic brand of safety and work footwear. These acquisitions have strengthened our focus and the planned split of the Group could create new business and acquisition opportunities.

In conclusion, I would like to take this opportunity to extend my sincere thanks to all of our dedicated employees for your many outstanding efforts during the year. I would also like to thank our customers and business partners for continuing to believe in us. I look forward to an exciting new financial year in 2017/2018 for both Bergman & Beving and Momentum Group.

Stockholm, May 2017

Ulf Lilius
President & CEO

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