SWEDOL AB (publ)

INTERIM REPORT 1 JANUARY – 30 JUNE 2012 SECOND QUARTER HIGHLIGHTS     

Revenuee inc ncre reas re ased as e by 10.0% to MSEK 353.5 (321.3). ed Opeerating proofif t am mou ount nnttedd to MS MSE EK 19. EK 9.2 (3 (34 4.4) and operating margin to 5.4% (10.7). Nett incomee am amou amou ount untted ed to MS MSE EK 14.0 0 (25. 52 2)) andd ear a ni n ng ngs per share h were ree SEK K 0.2 221 (0 0.39 91). Store re rev e en enue uee ros osee by 7.4% 4% comppar ared edd to th t e corresponding period of last year. Cash flflow ow fro rom m op oper erat atiing activities increased to MSEK 11.4 (-13.5).

FIRST HALF HIGHLIGHTS  Revenue increased by 12.7% to MSEK 684.9 (607.7).  Operating profit amounted to MSEK 38.8 (59.8) and operating margin to 5.7% (9.8).  Net income amounted to MSEK 29.1 (43.6) and earnings per share were SEK 0.451 (0.681).  Store revenue rose by 11.2% compared to the corresponding period of last year.  Cash flow from operating activities increased to MSEK 10.0 (-14.6). 1)

Earni Ea rnings ngs per share are the same before and aft fte t r dilu ilutio tio on,, sin since the t ere are re e no o ou utst tss and nd ding ng wa arra rrants r nts ts or co ts onv nverti nve tiible bless that ha a ca can lead lead to diilut lu uttio ion. ion on

20%

Revenue growth total

20%

Store sales growth

20%

Operating margin

40%

Return on equity

35% 15%

15%

15%

10%

10%

10%

30% 25% 20% 15%

5%

5%

5%

0%

0%

0%

10% 5%

Q3-11 Q4-11 Q1-12 Q2-12

Q3-11 Q4-11 Q1-12 Q2-12

0% Q3-11 Q4-11 Q1-12 Q2-12

Q3-11 Q4-11 Q1-12 Q2-12

COMMENTS BY THE CEO Continued growth for the Group by 10.0% during the quarter, despite weaker market conditions. I am pleased that our comparable stores continue to exhibit growth during the quarter. Total store sales increased by 7.4%. The assessment is that we are continuing to secure market shares in a weak market. The market investment in Norway, NIMA’s lower operating margin and the continued caution and uncertainty among our customers which has affected sales since the middle of the first quarter has entailed a lower operating margin during the quarter compared to the same period of 2011. During the first half of the year parts of the organization have at times been intensely involved in the completion of the new logistics centre in Örebro which was deployed at the end of July. Similar to the majority of actors in our industry, we can see that storm clouds are looming over the economy and how this impacts Swedol. Against this backdrop we will focus on developing our existing stores while our work on more efficient cost and capital operations will continue. Markku Piippo, CEO of Swedol.

SIGNIFICANT EVENTS DURING THE QUARTER During the period one (1) new store has opened in Norway (Kristiansand). During the period a contract has been concluded for a new store in Sweden (Trollhättan) with a planned opening in the third quarter of 2012. The store openings announced earlier in Karlskrona and Lund in the second half of 2012 have been postponed as the construction start has been delayed.

BUSINESS AND MARKET REVIEW Sales are made through own stores, mail order services, an Internet shop, on-theground representatives and retailers. All channels are nationwide in the Swedish market while the store network and on-the-ground representative structure is being developed in the Norwegian market. This combination of channels and markets is expected to boost the Group’s total revenues in the long-term. The company offers a wide range of products tailored to the needs of corporate customers in the transportation, manufacturing, agriculture, forestry and building industries with the objective of offering these customers a total solution. There is a wide product offering for private customers that demand quality. The product assortment combines quality with value for money and includes both external brands and private labels. Swedol’s extensive product range consists of about 20,000 articles divided into 70 product groups. These in turn can be divided into six product areas:  Electrical goods  Tools  Personal Protective Equipment  Vehicle Accessories  Consumables  Miscellaneous* * Includes NIMA’s product range

The takeover of NIMA Maskinteknik AB (”NIMA”) means that the business is broadened within the customer groups industry, agriculture and forestry. NIMA is one of the

leading actors in Sweden which manages distance trade within the forestry and agricultural sector. The bulk of sales come from the company’s 38 own stores in Sweden, which are geographically dispersed throughout the country, as well as its five own stores in Norway. During the period from January to June 2012, one additional store was opened in the Swedish market and two in the Norwegian market. The markets are undergoing a continuous restructuring process and the larger retail chains are expanding 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. Following a weak end to 2011, the retail sector initially showed a positive trend for demand during January and partly February of 2012, which later converted to a declining trend during the remainder of the first half of the year. Several customer groups in the corporate segment showed the same tendencies as the retail sector generally afterwards with the gradual weakening of demand during the period between March and June 2012. The demand trend from Swedol’s customer groups showed a similar pattern as the corporate segment in general.

SECOND QUARTER OF 2012 Sales amounted to MSEK 353.5 compared to MSEK 321.3 during the same period of last year, an increase of 10.0%. The sales increase showed a weaker trend during April and May, and later strengthened towards the end of the quarter. External competition is judged to have remained essentially unchanged during the period, but Swedol’s successively expanded market coverage in Sweden has led to some internal competition between stores and between the retail business and distance trade. Sales via distance trade (excl. NIMA) have shown falling sales during the quarter. NIMA’s sales (100% distance trade) amounted to MSEK 18.1 for the quarter. The stores as a group showed continued growth in revenue, despite the weaker market conditions during the quarter. Sales were distributed as follows: MSEK 307.4 (286.1) is attributable to stores and MSEK 46.1 (35.2) to distance trade. The stores accounted for 87.0% (89.0) of total sales during the period.

Breakdown of revenue by product areas

Breakdown of revenue by sales channel

Quarter 2, 2012 (quarter 2, 2011)

Quarter 2, 2012 (quarter 2, 2011)

9,6% (11,0) 20,6% (14,9)

Electrical goods

13,0% (11,0)

Stores

Tools

32,5% (36,2)

Personal Protective Equipment

14,8% (15,0)

Vehicle Accessories

87,0% (89,0)

,8)

%

4,7

(4

Consumables 17,8% (18,1)

Miscellaneous

2

Distance trade

The increase of MSEK 21.3 in store revenue breaks down as follows: Comparable stores* (34) Non-comparable stores* (9)

MSEK 0.5 MSEK 20.8

Revenue for the 34 comparable stores increased by an average of 0.2% in the second quarter of the year. Total store revenue was up by 7.4% compared to the same period of 2011. NIMA’s product range has been received well by Swedol’s store customers. Gross profit rose by 8.2% to MSEK 133.7 (123.6). Gross margin amounted to 37.8% (38.5). The lower gross margin can primarily be attributed to operations in Swedol Norge and NIMA which in terms of margin are at a lower level than the corresponding operations in Swedol Sverige. The fact that Swedol Norge has a lower gross margin than the operations in Swedol Sverige is due to that mainly freight, customs and forwarding were initially disproportionately large in comparison to the turnover. For the same period last year the comparable Swedish operations have largely had the same gross margin. At the same time the total net currency cost (spot + hedges) for purchases in USD and EUR between the periods in question has had a negative net effect that is estimated at around 0.2 percentage points of the margin weakening. Operating profit amounted to MSEK 19.2 (34.4) with an operating margin of 5.4% (10.7). The share of sales costs of the revenue has increased by 3.9 percentage points, while administration costs increased by 0.8 percentage points between the periods. The majority of the cost increases can be attributed to the market development in Norway.

FIRST HALF OF 2012 Sales amounted to MSEK 684.9 compared to MSEK 607.7 during the same period of last year, an increase of 12.7%. Sales were distributed as follows: MSEK 592.8 (533.2) is attributable to stores and MSEK 92.1 (74.5) to distance trade. The stores accounted for 86.6% (87.7) of total sales during the period. NIMA’s sales (100% distance trade) amounted to MSEK 33.0 for the first half of the year.

blished, an increase in inventories of approximately MSEK 50, and NIMA’s inventories amounting to MSEK 14 have been added. This would entail an improvement in efficiency of inventories of approximately MSEK 20 between the periods as a result of implemented measures. The ongoing market investment in Norway initially entails a lower turnover rate locally. Acquired forward contracts recognized directly equity in accordance with the principles for hedge accounting had a negative net effect of MSEK -2.0 (1.2) after estimated tax, which is reported under Other comprehensive income for the period. Cash and cash equivalents amounted to MSEK 8.8 (8.7). At the end of the reporting period, available cash and cash equivalents including undrawn credit frameworks amounted to MSEK 51.3 (108.7). During the second quarter the total credit framework increased by MSEK 45 to a total of MSEK 205. Interest-bearing liabilities totaled MSEK 162.5 (0.0). Consequently, the Group has interest-bearing net liabilities of MSEK 153.7, which for the comparison period was a net receivable of MSEK 8.7. The equity ratio is estimated at 54.6% (66.6).

INVESTMENTS During the period January - June 2012 investments in fixed assets amounted to MSEK 91.0 (11.2), of these approximately MSEK 75 relates to a new logistics centre in Örebro and in general to store-related investments. Profit for the period was charged with depreciation/scrapping of MSEK 8.5 (6.7). For the period corporate acquisitions amounted to MSEK 25.9 (0.0), also refer to Note 1 Business acquisitions, and relates to acquisition of the company NIMA.

EMPLOYEES The average number of employees during the period January - June 2012, excluding hourly-paid/temporary employees, was 443 (365). The increase between the periods is mainly attributable to the new staff added in connection with eight store openings, the takeover of the subsidiary NIMA and staff reinforcements in the stores and sales due to the market expansion in Norway. Of the total average number of employees, 102 (77) were women. The number of employees at the end of the second quarter was 465 (376).

PARENT COMPANY The increase of MSEK 59.6 in store revenue breaks down as follows: Comparable stores * (33)

MSEK 18.0

Non-comparable stores* (10)

MSEK 41.6

Sales for the 33 comparable stores increased by an average of 3.4% during the period January – June 2012. Total store revenue was up by 11.2% compared to the same period of 2011. Gross profit rose by 14.3% to MSEK 265.2 (232.0). Gross margin improved by 0.5 percentage points to 38.7% (38.2). The improvement in margin can mainly be attributed to positive non-recurrent effects during the first quarter. For the half-year as well the total net currency cost (spot + hedges) for purchases in USD and EUR between the periods in question has had a negative net effect that is estimated at around 0.2 percentage points of the margin weakening. Operating profit amounted to MSEK 38.8 (59.8) with an operating margin of 5.7% (9.8). The share of sales costs of the revenue has increased by 3.6 percentage points, while administration costs increased by 0.7 percentage points between the periods. The majority of the cost increases can be attributed to the market development in Norway. Costs relating to the takeover of NIMA amount to MSEK 1.4 within the item Other expenses. For the same period last year the comparable Swedish operations have shown a slightly weaker operating margin trend which is approximately 0.3 percentage points lower for the current period.

CASH FLOW AND FINANCIAL POSITION The cash flow from operating activities for the period January - June 2012 improved by MSEK 25 to MSEK 10.0 (-14.6) compared to the same period last year. The improvement in cash flow can primarily be attributed to the reduced growth rate for inventories relative to the comparison period. Investment activities amounted to MSEK 110.1 (11.2), see also Investments below. Dividends of MSEK 35.2 (32.0) were paid in the second quarter. Compared to the same period last year inventories have increased by MSEK 45.7 to MSEK 392.6 (346.9). During the interim period eight new stores have been esta* 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 Group consists of the Parent Company Swedol AB and its subsidiaries NIMA Maskinteknik AB (556176-4605), Swedol Förvaltning AB (556711-0068) and Swedol Norge AS (995 252 929). 93% of the Group’s net sales have been generated by Swedol AB during the period from January to June 2012. During the period the Parent Company has sold goods and services to group companies for a total of MSEK 22.8 (2.4).

SEASONALITY Sales have historically exhibited some seasonal fluctuations. During the 2011 calendar year, 47.3% of invoicing was generated in the first half and 52.7% in the second half of the year, with an emphasis on the final quarter which accounted for 29.7% (31.5) of total revenue for the year.

RELATED PARTY TRANSACTIONS No related party transactions, besides those with group companies, have taken place for the current period.

SIGNIFICANT RISKS AND OPERATING UNCERTAINTIES Swedol’s activities are exposed to a number of risks and uncertainties that can have an adverse effect on earnings to a varying extent. These risks can be divided into market, business, sustainability and financial risks. Swedol’s assessment is that the company will do well even under less favorable economic conditions, since the company actively strives for a low level of risk and is not dependent on any individual customers, product groups or suppliers. Market, business and sustainability related risks are described on pages 62-65 of the (Swedish) annual report for 2011. Descriptions and quantifications of the financial risks are provided on pages 64-65 and in Note 15 of the (Swedish) annual report for 2011. Apart from the risks described in the annual report, no significant new risks have been identified and no previously identified risks have been eliminated.

THE SWEDOL SHARE AND SHARE CAPITAL Swedol’s class B share is quoted on the Mid Cap list of NASDAQ OMX Stockholm. The share capital amounts to MSEK 9.6, divided between 6.4 million shares of class

3

A and 57.6 million shares of class B, each with a quota value of 0.15 per share. Each class A share grants entitlement to ten votes and each class B share entitlement to one vote. AB Zelda is the only shareholder with a holding whose total voting rights exceed one tenth of the votes for all shares in the company. There are no limitations on the number of votes each shareholder may exercise at a general shareholder meeting. All shares grant 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.

Swedol’s strategy is to achieve continued strong revenue growth with sustained profitability by opening new stores and increasing sales in the existing stores. The concept is highly attractive in the current market and is the only one of its kind. Through the establishment in Norway, Swedol is expanding the geographical market base for the concept. According to corporate policy, Swedol does not provide forecasts on future development. The company’s long-term financial targets consist of annual revenue growth of at least 20%, a return on equity of at least 25%, an operating margin of at least 13% and an equity ratio exceeding 40%.

EVENTS AFTER THE END OF THE REPORTING PERIOD Sales in July amounted to MSEK 87.0 (83.2), an increase of 4.6% compared to the same period of last year. Compared to the same month of last year, eight stores have been added and the total number of stores at the end of July 2012 amounted to 43 stores. Distance trade amounted to MSEK 9.2 (8.0). With communicated new openings, Swedol will have a total of 48 stores, of which 42 in Sweden and 6 in Norway. The investment in our new logistics centre which started in the autumn of 2011 became ready for occupancy and was deployed as planned at the end of July 2012. We will now begin to improve the efficiency of the storage process in order to meet the increasing demand requirement and requirement for fast and safe deliveries of our customers in a more cost-efficient manner. The flow of goods to stores will be developed in order to create more efficient flows which will lead to a higher stock turnover rate for the Group. The Group’s Deputy Managing Director Lars Wedar will retire on 30 September 2012. The retirement does not entail any additional costs for the company. The work tasks will be allocated within the organization.

FUTURE PROSPECTS AND LONG-TERM FINANCIAL TARGETS Swedol’s business concept is to be a complete supplier to corporate customers as well as private customers that demand professional quality. Swedol should sell a wide range of hardware consumable goods and equipment at competitive prices and with a high level of service in the stores. The products should be sold through a multi-channel concept that includes its own stores, retailers, mail order services, an Internet shop and on-the-ground representatives.

ACCOUNTING PRINCIPLES 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.

FINANCIAL CALENDAR Interim report Jan – Sep 2012 Year-end report Jan – Dec 2012 Interim report Jan – Mar 2013 Interim report Jan – June 2013

14 November 2012 20 February 2013 22 May 2013 21 Aug 2013

ANNUAL MEETING OF SHAREHOLDERS Annual General Meeting for 2012

22 May 2013

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, 21 August 2012

John Zetterberg Chairman

Rolf Zetterberg

Jon Pettersson

Markku Piippo CEO

Lotta Lundén

Gert Karnberger

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 on 22 August 2012, 08:50 am CET.

36

SWEDOL

34 32

Share OMX Stockholm PI

30 28

Shares traded (1000s)

26 24 5 000

22

4 000 20

3 000 2 000

18

1 000 16 2010

2011

2012 © NASDAQ OMX

The share graph has been recalculated with respect to the share split in 2011.

4

Financial reports SWEDOL GROUP – STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD JANUARY 1 - JUNE 30, 2012 Apr-jun MSEK Revenue Cost of sales Gross profit Other income Selling expenses Administrative expenses Other expenses Operating profit

2012

2011

2012

Jan-jun 2011

Jan-dec 2011

353,5 -219,8

321,3 -197,7

684,9 -419,7

607,7 -375,7

1 284,4 -784,7

133,7

123,6

265,2

232,0

499,7

6,5 -102,7 -12,6 -5,7

4,9 -80,7 -8,8 -4,6

8,8 -202,5 -23,8 -8,9

9,6 -157,9 -17,0 -6,9

15,0 -319,1 -34,0 -12,1

19,2

34,4

38,8

59,8

149,5

Net financial items

-0,2

0,2

0,7

-0,2

-1,8

Profit before tax

19,0

34,6

39,5

59,6

147,7

Income tax expense

-5,0

-9,4

-10,4

-16,0

-40,1

PROFIT FOR THE PERIOD1

14,0

25,2

29,1

43,6

107,6

– 2,2 -0,6

0,1 3,4 -0,9

-0,3 -2,7 0,7

0,1 1,6 -0,4

– 6,3 -1,7

Other comprehensive income: Translation gains/losses on consolidation

Cash flow hedges Deferred income tax relating to cash flow hedges Other comprehensive income for the period, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD1 Per share data: Earnings per share, before and after dilution (SEK) Average shares outstanding, before and after dilution 1

1,6

2,6

-2,3

1,3

4,6

15,6

27,8

26,8

44,9

112,2

0,22 64 000

0,39 64 000

0,45 64 000

0,68 64 000

1,68 64 000

Earnings attributable to the Parent Company´s shareholders.

SWEDOL GROUP - STATEMENT OF FINANCIAL POSITION AS AT JUNE 30, 2012 MSEK ASSETS Intangable assets Property, plant and equipment Total non-current assets Inventories Trade receivables Other receivables Current tax assets Financial derivatives Cash and cash equivalents Total current assets TOTAL ASSETS EQUITY AND LIABILITIES Equity attributable to equity holders of the parent Long-term borrowings Deferred tax Total non-current liabilities Trade and other payables Short-term borrowings Other non-interest-bearing current liabilities Financial derivatives Current tax payable Total current liabilities TOTAL LIABILITIES AND EQUITY

2012-06-30

2011-06-30

2011-12-31

18,6 262,4

6,9 102,7

6,8 167,8

281,0

109,6

174,6

392,6 114,6 46,0 9,2 2,6 8,8

346,9 98,0 29,3 18,3 1,1 8,7

363,9 119,7 49,7 10,7 5,3 10,0

573,8

502,3

559,3

854,8

611,9

733,9

466,4

407,5

474,8

– 55,2

– 44,0

– 53,6

55,2

44,0

53,6

105,6 162,5 63,6 1,4 0,1

102,2 – 39,1 2,3 16,8

120,1 28,4 38,9 1,3 16,8

333,2

160,4

205,5

854,8

611,9

733,9

5

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Share capital

Remaining capital contribution

Retained earnings including net profit for the period

Cash flow hedges

Equity attributable to owners of the parent

9,6

37,6

349,4

-2,0

394,6

MSEK Equity January 1, 2011 Comprehensive income Profit for the period Other comprehensive income Cash flow hedges, after tax Dividends Equity December 31, 2011 Equity January 1, 2011 Comprehensive income Profit for the period Other comprehensive income Cash flow hedges, after tax Dividends Equity June 30, 2011 Equity January 1, 2012 Comprehensive income Profit for the period Other comprehensive income Cash flow hedges, after tax Dividends Equity June 30, 2012

107,6

107,6 4,6

9,6

37,6

-32,0 425,0

9,6

37,6

349,4

2,6

4,6 -32,0 474,8

-2,0

394,6

43,6

43,6 1,3

9,6

37,6

-32,0 361,0

9,6

37,6

425,0

-0,7

1,3 -32,0 407,5

2,6

474,8

29,1

29,1 -2,3

9,6

-35,2 418,9

37,6

0,3

-2,3 -35,2 466,4

CONSOLIDATED STATEMENT OF CASH FLOWS 2012

Apr-jun 2011

2012

2011

Jan – dec 2011

19,0 5,1

34,6 2,8

39,5 8,1

59,6 6,2

147,7 14,0

6,6 -14,2 3,0 19,5

-13,9 12,8 -28,4 7,9

-28,7 0,9 10,2 30,0

-71,6 19,8 -1,5 12,5

-89,5 -22,3 16,4 66,3

-0,2 -7,9 11,4

0,2 -21,6 -13,5

0,7 -20,7 10,0

-0,2 -26,9 -14,6

-0,3 -35,4 30,6

Acquisition of subsidiary Purchase of property, plant and equipment Cash flow from investing activities

-1,1 -29,0 -30,1

– -5,9 -5,9

-19,1 -91,0 -110,1

– -11,2 -11,2

– -83,5 -83,5

Borrowings Dividends paid Cash flow from financing activities

56,5 -35,2 21,3

– -32,0 -32,0

134,1 -35,2 98,9

– -32,0 -32,0

28,4 -32,0 -3,6

Cash flow for the period

2,6

-51,4

-1,2

-57,8

-56,5

Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

6,2 8,8

60,1 8,7

10,0 8,8

66,5 8,7

66,5 10,0

2012

2011

2012

2011

Jan-dec 2011

10,0 37,8 5,4

14,0 38,5 10,7

12,7 38,7 5,7

15,3 38,2 9,8

11,8 38,9 11,6

12,9 11,8 54,6 628,9

33,9 24,6 66,6 407,5

14,2 12,4 54,6 628,9

30,1 21,7 66,6 407,5

33,5 24,8 64,7 503,2

54,9 4,5 11,4

5,9 3,4 -13,5

116,9 8,7 10,0

11,2 6,7 -14,6

83,5 13,9 30,6

465 452

376 368

465 443

376 365

399 382

0,22 0,18 7,29 – 28,70 64 000

0,39 -0,21 6,37 0,55 33,00 64 000

0,45 0,16 7,29 – 28,70 64 000

0,68 -0,23 6,37 0,55 33,00 64 000

1,68 0,48 7,42 0,55 29,60 64 000

MSEK Profit before taxes Adjustment for non-cash items, etc. Changes in operating assets and liabilities Change in inventories Change in operating receivables Change in operating liabilities Cash flow from operating activities Net interest income/expense Income tax paid Cash flow from operating activities

Jan-jun

KEY FIGURES Apr– jun MSEK Marginal figures Revenue growth, % Gross margin, % Operating margin, % Financial figures Return on average capital employed, % Return on average equity, % Equity ratio, % Capital employed, MSEK Operational figures Gross investment, MSEK Depreciation, MSEK Cash flow from operating activities, MSEK Sustainability-related key figures Number of employees at end of period Average number of employees during the period Per share data, SEK Earnings, SEK Cash flow from operating activities, SEK Equity, SEK Dividends, SEK2 Closing market price on March 31, SEK Number of shares, thousands

6

Jan – jun

SPECIFICATION OF CHANGE IN RESULTS Second quarter 2012/first half year 2012 compared with corresponding period last year. MSEK Gross profit from increased sales Change in gross margin Change in gross profit

Apr-jun 2012

Jan – jun 2012

Jan-dec 2011

12,4 -2,3

29,5 3,7

50,7 20,9

10,1

33,2

71,6

Selling expenses (excluding deprec) Acquisition expenses - Nima Other operating expenses Depreciation /disposal

-20,9 0,0 -3,3 -1,1

-42,6 -1,4 -8,2 -2,0

-49,4 0,0 -5,3 -2,1

Change in operating income

-15,2

-21,0

14,8

-0,4 4,4

0,9 5,6

-1,7 -6,0

-11,2

-14,5

7,1

Net financials Income tax Change in Net Income

QUARTERLY DATA MSEK

Q2/12

Q1/12

Q4/11

Q3/11

Q2/11

Q1/11

Q4/10

Q3/10

Q2/10

Revenues Cost of sales

353,5 -219,8

331,4 -199,9

381,2 -231,5

295,5 -177,5

321,3 -197,7

286,4 -178,0

361,9 -223,2

259,4 -161,3

281,8 -182,9

133,7

131,5

149,7

118,0

123,6

108,4

138,7

98,1

98,9

-114,5

-111,9

-100,0

-78,0

-89,2

-83,0

-81,3

-64,3

-75,8

19,2

19,6

49,7

40,0

34,6

25,4

57,4

33,8

23,1

Gross profit Other operating expenses Operating profit

1

Net financials

-0,2

0,9

-0,6

-1,0

0,0

-0,4

-0,2

-0,5

0,3

Profit before tax

19,0

20,5

49,1

39,0

34,6

25,0

57,2

33,3

23,4

Key figures Operating margin, % Return on average equity, % Equity ratio, % Earnings per share, SEK1 Shareholders equity per share, SEK1 Cash flow from operations per share, SEK1

5,4 11,8 54,6 0,22 7,29 0,18

5,9 12,6 59,4 0,24 7,59 -0,02

13,0 31,4 64,7 0,56 7,42 0,53

13,5 26,4 68,2 0,44 6,89 0,18

10,7 24,6 66,6 0,39 6,37 -0,21

8,9 18,3 64,1 0,29 6,44 -0,02

15,9 46,7 66,1 0,68 6,17 0,85

13,0 28,8 63,9 0,39 5,47 0,33

8,2 20,9 64,9 0,27 5,16 0,23

Restated in respect of the share split in 2011.

KEY FIGURE DEFINITIONS GROSS MARGIN

Gross margin in percent of net sales.

OPERATING MARGIN

Operating profit as a percentage of net sales.

PROFIT MARGIN

Income after financial items as a percentage of net sales.

EQUITY RATIO

Equity as a percentage of total assets.

EARNINGS PER SHARE

Net earnings divided by the number of shares, adjusted to new issues and splits.

RETURN ON AVERAGE EQUITY

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.

RETURN ON AVERAGE CAPITAL EMPLOYED

Profit after financial items plus financial expenses as a percentage of average capital employed at the start of the period and the end of the period divided by two.

CAPITAL EMPLOYED

Total assets less non-interest bearing liabilities and other allowances, including deferred tax liability.

CASH FLOW FROM OPERATING ACTIVITIES PER SHARE

Cash flow from operating activities, divided by the number of shares adjusted for share issue and share split.

EQUITY PER SHARE

Equity divided by the number of shares adjusted for share issue and share split.

INDUSTRY TERMS AND OTHER TERMINOLOGY DIY MARKET HVAC MARKET COMPARABLE STORES the entire period. DISTANCE TRADE

The do-it-yourself market is the industry term of the market for those involved in do-it-yourself at home within construction and renovation, reconstruction and extension. The generic term for products and services within heating, ventilation and sanitation. Comparable stores refers to stores that, when compared to a specific period, have been open throughout Products sold via the Internet, telephone or on-the-ground representatives and delivered directly to mailbox or door, alternatively to local post offices, postal outlets or to other postal distributors.

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PARENT COMPANY INCOME STATEMENT FOR THE PERIOD JANUARY 1 - JUNE 30, 2012 2012

Apr-jun 2011

2012

2011

Jan-dec 2011

336,9 -211,2

323,9 -200,4

658,7 -406,5

610,1 -379,0

1 300,9 -801,0

Gross profit

125,7

123,5

252,2

231,1

499,9

Selling expenses Administrative expenses Other operating income Other operating expenses

-85,5 -10,6 6,6 -17,7

-80,4 -8,7 4,9 -4,6

-171,3 -20,3 9,1 -28,0

-157,6 -16,8 9,6 -6,9

-318,8 -33,5 15,0 -12,1

18,5

34,7

41,7

59,4

150,5

MSEK Net sales Cost of goods sold

Operating profit Net financial Profit after financial items Appropriations Profit before tax

Jan-jun

0,5

–

1,0

-0,3

0,4

19,0

34,7

42,7

59,1

150,9

–

–

–

–

-33,4

19,0

34,7

42,7

59,1

117,5

Tax on profit for the year

-5,0

-9,2

-11,2

-15,6

-31,6

Net profit for the year

14,0

25,5

31,5

43,5

85,9

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME Apr-jun MSEK Profit for the period

2012

2011

2012

Jan-jun 2011

Jan-dec 2011

14,0

25,5

31,5

43,5

85,9

Other comprehensive income

–

–

–

–

–

Other comprehensive income for the period, net after tax

–

–

–

–

–

14,0

25,5

31,5

43,5

85,9

2012-06-30

2011-06-30

2011-12-31

ASSETS Intangible assets Property, plant and equipment Financial assets

5,5 129,1 147,5

6,2 100,3 2,5

5,8 102,7 62,3

Total non-current assets

282,1

109,0

170,8

Inventories Current receivables Cash and bank balances

343,9 163,3 7,3

343,3 148,3 7,8

347,6 178,3 3,9

Total comprehensive income for the period

PARENT COMPANY BALANCE SHEET AS AT JUNE 30, 2012 MSEK

Total current assets

514,5

499,4

529,8

TOTAL ASSETS

796,6

608,4

700,6

EQUITY AND LIABILITIES Restricted equity Unrestricted equity

12,8 310,8

12,8 272,2

12,8 314,5

Equity

323,6

285,0

327,3

Untaxed reserves

200,4

167,0

200,4

Current interest bearing liabilities Trade payable Current tax liability Other non-interest-bearing current liabilities

102,1 102,2 – 68,3

– 100,3 16,8 39,3

11,7 106,1 16,8 38,3

Total current liabilities

272,6

156,4

172,9

TOTAL LIABILITIES AND EQUITY

796,6

608,4

700,6

71,1 0,9

71,0 0,9

71,1 0,9

Pledged assets Contingent liabilities

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NOTE 1 BUSINESS ACQUISITIONS On 4 January 2012 Swedol acquired NIMA Maskinteknik AB (”NIMA”). NIMA is one of the leading actors in Sweden which manages distance trade within the forestry and agricultural sector. The majority of products in the range are own imports from leading European manufacturers. The customers consist primarily of entrepreneurs within industry, agriculture and forestry, but also private individuals. NIMA and Swedol both have a successful concept with similar approaches within their customer segments, as a result of which there is a large potential for both companies with good synergy effects. The operations in NIMA will be managed separately under their own brands, but there will be a gradual adaptation to joint purchasing and marketing.

Information on the acquired net assets and goodwill: The total purchase sum is estimated at MSEK 25.9. Acquisition-related costs amounted to MSEK 1.4. Goodwill is mainly attributable to the synergy effects which are expected to arise through coordination of the operations in the Group. Assets and liabilities, as at 4 January 2012, as a result of the acquisition are as follows:

MSEK ASSETS Goodwill Other intangible assets Property, plant and equipment Inventories Trade receivables Additional Cash and cash equivalents

7,9 4,3 10,1 11,7 4,1 0,8 2,9

TOTAL ASSETS

41,8

LIABILITIES Trade and other payables Short-term borrowings Other non-interest-bearing current liabilities Current tax payable

5,7 5,0 3,4 1,8

TOTAL ASSETS

15,9

Total purchase sum Fixed purchase sum Additional purchase sum

25,9 22,5 3,4

The acquired book value equates to the same amount as the fair value of all acquired assets and liabilities not including land and buildings which have been appreciated by MSEK 3.7 for valuation to fair value.

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Our stores STORES IN SWEDEN Stores in Stockholm SOLLENTUNA Bergkällavägen 24 192 79 SOLLENTUNA

SÄTRA Stensätravägen 4 127 39 SKÄRHOLMEN

TYRESÖ Vindkraftsvägen 2 135 70 TYRESÖ

VEDDESTA Kontovägen 5 175 62 JÄRFÄLLA

FALKÖPING Warodells väg 5-9 SE-521 40 Falköping

Stores in Göteborg HISINGS BACKA Exportgatan 26 422 46 HISINGS BACKA

VÄSTRA FRÖLUNDA August Barksgatan 9 421 32 V:A FRÖLUNDA

Other locations BORLÄNGE Hammargatan 6 SE-781 71 BORLÄNGE

BORÅS Vegagatan 1/Sagagatan SE-506 35 BORÅS

ESKILSTUNA Kungsgatan 66 SE-632 21 ESKILSTUNA

GÄVLE Utmarksvägen 10 SE-802 91 GÄVLE

HALMSTAD Ryttarevägen 10 SE-302 60 HALMSTAD

HAPARANDA Hästskovägen 4 D SE-953 36 HAPARANDA

HELSINGBORG HUDIKSVALL Garnisonsgatan 14 Ullsättersvägen 2 SE-254 66 HELSINGBORG SE-824 34 HUDIKSVALL

JÖNKÖPING Solåsvägen 20 SE-553 03 JÖNKÖPING

KALMAR Engelska vägen 5 SE-393 56 KALMAR

KARLSTAD Blockgatan 8 – 10 SE-653 41 KARLSTAD

KRISTIANSTAD LINKÖPING Jochums väg 5 Svedengatan 17 SE-291 59 KRISTIANSTAD SE-582 73 LINKÖPING

LULEÅ Ödlegatan 7 SE-973 34 LULEÅ

MALMÖ Flygplansgatan 11 SE-212 39 MALMÖ

MOTALA Mineralvägen 12 SE-591 53 MOTALA

NORRKÖPING Malmgatan 33 SE-602 23 NORRKÖPING

NORRTÄLJE Viktor Karlssons väg 2 SE-761 50 NORRTÄLJE

NYKÖPING Gustafsbergsstigen 18 SE-611 65 NYKÖPING

SKELLEFTEÅ Tjärnvägen 22 SE-931 61 SKELLEFTEÅ

SKÖVDE Titanvägen 4 SE-541 39 SKÖVDE

SUNDSVALL Norra Vägen 25 SE-856 50 SUNDSVALL

UDDEVALLA Frölandsvägen 1 SE-451 76 UDDEVALLA

UPPSALA Stångjärnsgatan 8 B SE-753 23 UPPSALA

VARBERG Värnamovägen 2 SE-432 32 VARBERG

VISBY Hyvelgatan 3 SE-621 41 VISBY

VÄRNAMO Silkesvägen 26 SE-331 53 VÄRNAMO

VÄSTERÅS Traversgatan 13 B SE-721 38 VÄSTERÅS

VÄXJÖ Smedjegatan 20 A SE-352 46 VÄXJÖ

ÖREBRO Nastagatan 8 SE-702 27 ÖREBRO

ÖSTERSUND Brosslarvägen 30 SE-831 72 ÖSTERSUND

SANDNES Svanholmen 19 4313 SANDNES

FREDRIKSTAD Dikeveien 18 1661 ROLVSØY

KRISTIANSAND Barstølveien 25 4636 KRISTIANSAND

TRONDHEIM OPENS Q3

FALUN OPENS Q3

STORES IN NORWAY DRAMMEN Tomtegata 80 3012 DRAMMEN

MOSS Midtveien 5 1526 MOSS

STORES OPENING IN 2012 – 2013 VÄRNAMO OPENED Q1

FREDRIKSTAD NORWAY OPENED Q1

KRISTIANSAND OPENED Q2

TROLLHÄTTAN OPENS 2012

LUND OPENS 2013

KARLSKRONA OPENS 2013

Box 631, SE-135 26 Tyresö Visitingaddress: Vindkraftsvägen 2 www.swedol.se

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