Lammhults Design : Good order bookings and improved earnings in Q2

Press Release from Lammhults Design Group AB (publ), corp. reg. no. 556541-2094

(The interim report for January-June 2015 is distributed as part of this press release)

Good order bookings and improved earnings in Q2

• Net sales SEK 373.3 million (375.4), of which SEK 194.2 million (191.2) in Q2

• Operating profit SEK 12.3 million (11.0), of which SEK 7.1 million (6.0) in Q2

• Earnings per share before and after dilution SEK 0.94 (0.70), of which SEK 0.57 (0.44) in Q2

• Order bookings SEK 393.6 million (384.0), of which SEK 207.1 million (195.7) in

Q2

• Order backlog SEK 137.9 million (141.2)

Comments by CEO Anders Rothstein

Anders Rothstein, President and CEO comments: "Overall, results in Q2 were good, with organic order bookings 6 percent higher and earnings per share rising 30 percent. Net sales for the Lammhults, Ire, BCI and SCHULZ SPEYER brands rose sharply. Earnings improved

in Q2 thanks to efficiency improvements in production and effective control of costs. However,

the quarter was again dominated by a degree of uncertainty in the Norwegian market".

Sales in H1 were on a par with 2014, while order bookings increased by 2 percent, with rises in both Office & Home Interiors and Public Interiors business areas. The Group's operating profit totalled SEK 7.1 million (6.0) in Q2 and SEK 12.3 million (11.0) in H1, representing an accumulated operating margin of 3.3 percent (2.9).

Lammhult, 17 July 2015

Lammhults Design Group AB

Anders Rothstein

President and CEO

For more information, please contact Anders Rothstein, President and CEO, on [phone]

96 71/[phone],

or Stefan Liljedahl, CFO, on [phone]/[phone].

This information is such that Lammhults Design Group AB is required to publish in accordance with the Swedish Capital Markets Act, the Swedish Financial Instruments Trading Act and requirements stated in listing agreements. This information was submitted for publication at 2.00 p.m. on 17 July 2015.

Lammhults Design Group AB (publ), corp. reg. no. 556541-2094 Interim Report 1 January - 30 June 2015

• Net sales SEK 373.2 million (375.4), of which SEK 194.2 million (191.2) in Q2

• Operating profit SEK 12.3 million (11.0), of which SEK 7.1 million (6.0) in Q2

• Profit before tax SEK 11.3 million (8.0), of which SEK 6.8 million (4.7) in Q2

• Profit after tax SEK 7.9 million (5.9), of which SEK 4.8 million (3.7) in Q2

• Earnings per share before and after dilution SEK 0.94 (0.70), of which SEK 0.57 (0.44) in Q2

• Order bookings SEK 393.6 million (384.0), of which SEK 207.1 million (195.7) in

Q2

• Order backlog SEK 137.9 million (141.2)

• Equity/assets ratio 57.7 percent (56.2)

• Debt/equity ratio 0.33 (0.37) Group's net sales and profit

The Group's net sales totalled SEK 373.2 million (375.4) in H1, 1 percent lower than last year. Net sales for the Group in Q2 were 2 percent higher than in the preceding year, totalling SEK

194.2 million (191.2). Sales for the Office & Home Interiors business area fell 3 percent in Q2

and H1. The Lammhults, Voice and Ire brands recorded positive growth in both Q2 and H1. Net sales for Public Interiors rose by 12 percent in Q2 and by 5 percent in H1. In Q2, the Group's order bookings rose 6 percent to SEK 207.1 million (195.7). The Group's order bookings in H1 rose 2 percent to SEK 393.6 million (384.0). Order bookings for Office & Home increased by 5 percent in Q2 and by 1 percent in H1, with strong orders bookings being reported above all for the Lammhults, Voice and Ire brands. At Public Interiors, order booking rose by 9 percent in Q2 and by 5 percent in H1. At mid-year, the Group's order backlog was SEK 3.3 million lower than at the corresponding point last year, totalling SEK 137.9 million (141.2). At unchanged exchange rates from H1 last year, net sales for the Group would have been SEK 5.3 million lower and order bookings SEK 6.4 million lower, while the order backlog would have been SEK 3.2 million lower at SEK 134.7 million.

The Group's gross margin in H1 was somewhat higher than last year, at 36.0% (35.8). The biggest increase in gross margin was recorded at Public Interiors, while it declined at Office & Home Interiors above all for Fora Form as a result of lower volumes. In Q2, the Group's gross margin was 35.8 percent (35.6). The margin for Office & Home improved compared to Q2 last year.

Sales and administration costs totalled SEK 121.3 million (124.5) in H1 and SEK 61.6 million (63.4) in Q2. Operating profit totalled SEK 12.3 million (11.0) in H1 and SEK 7.1 million (6.0) in Q2. Profit before tax totalled SEK 11.3 million (8.0) in H1 and SEK 6.8 million (4.7) in Q2.

Finance income/costs in H1 were affected by positive exchange rate differences of SEK 0.2 million, as against negative exchange rate differences of SEK 1.3 million in the corresponding period last year.

Group's financial position and cash flow

The equity/assets ratio was 58.0% (56.0) on 30 June 2015, while the debt/equity ratio was 0.33 (0.37). The Group's cash flow from operating activities amounted to SEK -13.2 million (-13.1) in Q2 and SEK -22.3 million (-7.3) in H1. The principal factor affecting cash flow from operating activities in H1 was lower current liabilities. Cash flow for the period amounted to SEK -1.0 million (-9.8) for Q2 and SEK -13.2 million (-32.7) in H1.

Per-share data

Earnings per share for the Group in H1 totalled SEK 0.94 (0.70) before and after dilution. Equity per share on 30 June 2015 was SEK 45.63 (44.45) before and after dilution.

Business areas Office & Home Interiors

The business area develops, markets and sells products for interiors for public and home environments under the Lammhults, Abstracta, Fora Form, Voice and Ire brands.

Net sales totalled SEK 135.2 million (138.7) in Q2 and SEK 261.7 million (269.1) in H1. In Q2 and in H1, Lammhults, Ire and voice recorded higher net sales. Order bookings rose 5 percent in Q2, and were 1 percent higher in H1 than in the corresponding period last year,

when Lammhults and Ire reported the highest increase. However, the order backlog on 30 June

was 4 percent lower than in the preceding year, mainly as a result of a lower order backlog for

Abstracta and Fora Form.

The gross margin for Office & Home Interiors in H1 improved compared to the preceding year, above all at Abstracta, where efficiency improvements in production yielded results. Operating profit for the business area totalled SEK 10.0 million (8.4) in Q2 and SEK 17.6 million (15.9) in H1.

Public Interiors

The business area develops, markets and sells interiors and product solutions for public environments under the Eurobib Direct, BCI and Schulz Speyer brands.

Net sales totalled SEK 59.3 million (52.8) in Q2 and SEK 112.1 million (107.0) in H1. The improved net sales in H1 were driven above all by strong project sales in the Danish market, as well as by Eurobib Direct (aftermarket sales). Order bookings for the business area rose 9 percent in Q2, with buoyant demand in Norway, Germany and France. Order bookings in H1

rose 5 percent. Operating profit totalled SEK 3.7 million (4.1) in Q2 and SEK 6.3 million (6.8)

in H1.

Group's investments and depreciation

The Group's investments in property, plant and equipment amounted to SEK 3.2 million (4.8) while investments in intangible assets totalled SEK 3.1 million (2.9). Total depreciation according to plan was SEK 3.4 million (3.2) in Q2 and SEK 7.0 million (6.4) in H1.

Group's liquidity and financing

Cash and cash equivalents for the Group, including unused overdraft facilities, totalled SEK

76.9 million (84.8) on 30 June 2015.

Parent Company

The Parent Company's business activities consist of Group management and certain Group- wide functions. Net sales amounted to SEK 3.2 million (3.1), with a profit before tax of SEK

1.3 million (16.7). Investments totalled SEK 0.0 million (0.1). Cash and cash equivalents,

including unused overdraft facilities, totalled SEK 61.7 million (56.5) on 30 June 2015.

Forthcoming financial reports

Interim report for January-September 2015: 27 October 2015.

Accounting policies

This summary interim report for the Group was prepared in accordance with IAS 34 Interim Financial Reporting and relevant provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company was prepared in accordance with Section 9, Interim Reports, of the Swedish Annual Accounts Act.

For both Group and Parent Company, the same accounting policies and bases of calculation were used as in the Company's most recent annual report. In accordance with IFRS 11 Joint Arrangements, joint ventures are accounted for on the basis of the equity method. These were accounted for in the financial reports presented for the first half of 2014 and earlier in accordance with the proportional method of accounting. The comparative figures in this report have been recalculated in accordance with the equity method. The new and revised accounting standards that entered into force in 2015 are not considered likely to have any impact on the Group's accounting.

Risks and uncertainties

The significant risks and uncertainties faced by the Group and Parent Company include business risks in the form of high exposure to certain sectors. The Group is also exposed to financial risks. Chief among these are currency risks relating to fluctuations in exchange rates in conjunction with exports and imports, interest risks in connection with liquidity and debt management, and credit risks in connection with sales. The Group is also exposed to a certain extent to commodities risk. Other than the risks described in the 2014 Annual Report (see Note 27 for a more detailed description of the Group's and Parent Company's risk exposure

and risk management), it is not believed that any significant new risks have arisen. The market

remains uncertain, and a downturn in both the Nordic region and Europe may impact negatively on the Group's future sales.

Certification

The Board of Directors and the President hereby declare that this interim report provides a true and fair picture of the operations, financial position and performance of the Parent Company and the Group, and also describes material risks and uncertainties to which the Parent

Company and the other companies in the Group are exposed.

Lammhult, 17 July 2015 Anders Pålsson
Chairman
Peter Conradsson	Maria Edsman	Jörgen Ekdahl
Board member	Board Member	Board Member
Jerry Fredriksson	Maria Bergving	Anders Rothstein
Board Member	Board Member	President and CEO

This interim report has not been reviewed by the Company's auditor.

CONSOLIDATED STATEMENT OF INCOME

Remaining businesses Apr-June Apr-June Jan-June Jan-June July-June Jan-Dec

Amounts in SEK m. 2015 2014 2015 2014 2014/2015 2014
Net sales 194,2 191,2 373,3 375,4 753,9 756,0
Cost of goods sold -124,6 -123,2 -238,9 -241,1 -480,5 -482,7

Gross profit 69,6 68,0 134,4 134,3 273,4 273,3

Other operating income 0,3 1,6 2,0 2,9 4,6 5,5
Sales and administration costs -61,7 -63,4 -121,2 -124,4 -238,0 -241,2
Other operating costs -1,4 -1,0 -3,1 -2,1 -5,4 -4,4
Share in earnings of joint venture 0,3 0,8 0,3 0,3 0,5 0,5

Operating profit 7,1 6,0 12,3 11,0 35,0 33,7

Net finance income/costs -0,3 -1,3 -1,1 -3,0 -2,5 -4,4

Profit/loss before tax 6,8 4,7 11,3 8,0 32,6 29,3

Tax -2,1 -1,0 -3,4 -2,1 -8,9 -7,6

Profit from remaining business for the period 4,8 3,7 7,9 5,9 23,7 21,7

Profit from business divested, net after tax 0,0 0,0 0,0 0,0 0,0 0,0

Profit/loss for the period 4,8 3,7 7,9 5,9 23,7 21,7

Profit/loss for the period attributable to:
Shareholders in Parent Company 4,7 3,7 7,8 5,9 23,5 21,6
Non-controlling interests 0,1 0,0 0,1 0,0 0,2 0,1

Earnings per share before and after dilution

Remaining businesses 0,57 0,44 0,94 0,70 2,81 2,57
Discontinued businesses - - - - - -

Total, Group 0,57 0,44 0,94 0,70 2,81 2,57

Number of shares at end of period, thousands 8 448 8 448 8 448 8 448 8 448 8 448

CONSOLIDATED STATEMENT OF INCOME AND OTHER COMPREHENSIVE INCOME, SUMMARY

Depreciation/amortisation

Depreciation is distributed over the following lines in the income statement:

Cost of goods sold	-1,8	-1,8	-3,6	-3,4	-6,9	-6,7
Cost of sales	-0,3	-0,2	-0,8	-0,6	-2,0	-1,8
Administrative expenses	-1,3	-1,2	-2,6	-2,4	-6,8	-6,6
Total	-3,4	-3,2	-7,0	-6,4	-15,7	-15,1

Other operating income

Apr-June Apr-June Jan-June Jan-June July-June Jan-Dec

2015 2014 2015 2014 2014/2015 2014
Exchange rate gains 0,3 1,4 1,7 2,5 3,6 4,4
Other operating income 0,0 0,2 0,3 0,4 1,0 1,1

Total 0,3 1,6 2,0 2,9 4,6 5,5

Other operating costs

Exchange rate losses -1,1 -0,9 -2,5 -1,5 -4,8 -3,8
Reversals of order backlog acquired 0,0 -0,3 0,0 -0,6 0,0 -0,6
Other operating costs -0,3 0,2 -0,6 0,0 -0,6 0,0

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

Net finance income/costs

Finance income 1,3 0,9 2,2 1,7 4,3 3,8
Finance costs -1,6 -2,2 -3,3 -4,7 -6,8 -8,2

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

CONSOLIDATED STATEMENT OF FINANCIAL POSITION, SUMMARY

Amounts in SEK m. 30 June 2015 30 June 2014 31 Dec 2014
Intangible non-current assets 237,9 239,2 241,9
Property, plant and equipment 114,1 110,3 115,7
PARTICIPATIONS IN JOINT VENTURES 3,5 3,5
Financial investments 0,2 0,2 0,2
Deferred income tax assets 2,8 3,3 3,7
Inventories 106,2 106,7 99,2
Current accounts receivable 189,3 197,6 170,3
Cash and cash equivalents 15,2 13,7 27,9

Total assets 669,2 671,0 662,4

Equity attributable to shareholders in Parent Company 385,5 375,5 396,1
Equity attributable to non-controlling interests 0,4 0,3 0,4
Non-current interest-bearing liabilities 41,9 60,6 50,9
Provisions 2,0 2,2 2,1
Deferred tax liabilities 8,6 7,6 8,7
Current interest-bearing liabilities 84,4 76,9 49,1
Other current liabilities 146,4 147,9 155,1

Total equity and liabilities 669,2 671,0 662,4

CONTINGENT LIABILITIES, GROUP

Amounts in SEK m. 30 June 2015 30 June 2014 31 Dec 2014
Surety bonds 3,4 3,5 3,4
Warranties 3,8 5,5 2,9
Other contingent liabilities 1,6 1,7 1,7

Total contingent liabilities 8,8 10,7 8,0

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY, SUMMARY

Jan-June Jan-June Jan-Dec

Amounts in SEK m. 2015 2014 2014
Opening bal., equity attrib. to shareholders in Parent Comp 396,1 371,5 371,5
Total comprehensive income for the period 2,2 12,4 33,0
Dividend paid -12,7 -8,4 -8,4
Closing bal., equity attrib. to shareholders in Parent Compa 385,6 375,5 396,1
Opening bal., equity attrib. to non-controlling interests 0,4 0,3 0,3
Total comprehensive income for the period 0,0 0,0 0,1

Closing bal., equity attrib. non-controlling interests 0,4 0,3 0,4

Total closing balance, equity 385,9 375,8 396,5

CONSOLIDATED STATEMENT OF CASH FLOWS, SUMMARY

Apr-June Apr-June Jan-June Jan-June July-June Jan-Dec

Amounts in SEK m. 2015 2014 2015 2014 2014/2015 2014
Cash flow from operating activities before
changes in working capital 8,6 6,5 12,9 11,0 39,2 37,3
Changes in working capital -21,7 -19,6 -35,1 -18,3 -2,4 14,4

Cash flow from operating activities -13,1 -13,1 -22,2 -7,3 36,8 51,7

Purchases of property, plant and equipment -1,1 -3,1 -3,2 -4,8 -12,1 -13,7
Sale of property, plant and equipment 0,0 0,6 0,1 0,6 0,2 0,7
Purchases of non-current intangible assets -2,7 -0,9 -3,1 -2,9 -6,2 -6,0
Sale of non-current intangible assets - - - - 0,0
Investments in financial assets - - -0,1 - -0,1
Purchases of subsidiaries, net impact on liquidity - - - - 0,0
Sale of subsidiaries, net impact on liquidity - - 1,9 1,9

Cash flow from investing activities -3,8 -3,4 -4,4 -7,1 -16,3 -19,0

Borrowings 32,4 20,6 42,5 3,4 47,9 8,8
Repayments of loans -3,8 -5,4 -16,5 -13,2 -58,9 -55,6
Dividend paid to parent company owners -12,7 -8,5 -12,7 -8,5 -12,6 -8,4

Cash flow from financing activities 15,9 6,7 13,3 -18,3 -23,6 -55,2

Cash flow for the period -1,0 -9,8 -13,3 -32,7 -3,1 -22,5

Cash and cash equivalents at beginning of period 15,0 23,1 27,9 46,1 26,3 44,5
Translation difference in cash and cash equivalents 1,2 0,4 0,6 0,3 6,2 5,9

Cash and cash equivalents at end of period 15,2 13,7 15,2 13,7 29,4 27,9

KEY FIGURES FOR THE GROUP	Apr-June	Apr-June	Jan-June	Jan-June	July-June	Jan-Dec
2015	2014	2015	2014	2014/2015	2014
Growth, %	1,6	42,6	-0,6	32,1	0	26,0
Gross margin, %	35,8	35,6	36,0	35,8	36,3	36,1
Operating margin, %	3,7	3,2	3,3	2,9	4,6	4,5
Net margin, %	3,5	2,4	3,0	2,1	4,3	3,9
Return on equity, %	1,2	1,0	2,0	1,6	6,2	5,7
Return on capital employed, %	1,7	1,4	2,9	2,5	7,7	7,4
Debt/equity ratio, times	-	-	0,33	0,37	-	0,25
Equity/assets ratio, %	-	-	57,7	56,2	-	59,9
Equity per share before dilution, SEK	-	-	45,63	44,45	-	46,88
Equity per share after dilution, SEK	-	-	45,63	44,45	-	46,88
Average number of employees	343	363	343	363	354	353

Growth is defined as percentage change in net sales during the current period relative to net sales during the equivalent comparative period. For further definitions, see the Group's 2014 Annual Report.