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MACKMYRA SVENSK WHISKY AB (PUBL)

YEAR-END REPORT JANUARY–DECEMBER2015Q4

ThisYear-EndReportisatranslationoftheoriginaltextinSwedish,whichistheofficialversion.

MACKMYRA SVENSK WHISKY AB YEAR-END REPORT 2015

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Published on 22 February 2016

EARNINGS IN BRIEF 2015 2014 2015 2014 Key rations Oct-Dec Oct-Dec Full year Full year Net sales excluding alcohol tax, MSEK 19,8 17,4 62,1 52,1 Growth in sales excluding alcohol tax 14% -20% 19% -19% Sales Bottles, MSEK 13,4 11,1 37,5 30,0 Sales, Casks and Experiences, MSEK 6,4 6,3 24,3 21,9 Gross profits before under-absorption, MSEK 10,6 8,4 32,8 31,3 Gross profit margin before under-absorption, percent 53% 48% 53% 60% Gross profits, MSEK 8,0 6,6 21,5 19,9 Gross profit margin, percent 41% 38% 35% 38% Operating profits before depreciations (EBITDA) and under-absorption, MSEK -0,2 -2,4 -4,4 -9,7 Under-absorption and depreciations, MSEK -2,9 -2,0 -12,9 -12,7 Operating profits, MSEK -3,1 -4,4 -17,3 -22,4 Interest expenses -1,8 -2,0 -8,6 -8,5 Tax -0,1 -1,6 -0,1 -1,6 Earnings after tax, MSEK -5,0 -8,0 -26,1 -32,4

Cash flow after capital expenditures, MSEK 3,6 -2,4 -7,0 -27,0 Basic earnings per share, SEK -0,55 -0,98 -3,19 -4,90 MACKMYRA RETURNS TO RAPID SALES GROWTH IN THE YEAR 2015 Sales figures for 2015 increased by 19 percent or MSEK 10 compared with the previous year due to a clear increase in both bottles and casks. During the fourth quarter, sales increased by 14 percent. Sales to Mackmyra’s prioritised foreign markets more than doubled and increased by MSEK 3.7 to approximately MSEK 7.0 in 2015. The sale of private brand products constituted MSEK 2.5 of the year’s increase in sales. The fourth quarter’s cash flow after capital expenditures was positive and amounted to MSEK 3.6 (-2.4). Cash flow after capital expenditures improved in 2015 by MSEK 20.0 and amounted to MSEK -7.0 (-27.0). Likewise, the beginning of 2016 is showing a continued increase in sales compared with the previous year.

• Mackmyra showed in 2015 continued strong improvement in cash flow after investments. 2015 cash flow was improved by SEK 20 million, which was in line with the 2014 improvement of SEK 21 million.

• The sale of bottles increased by 20 percent in the fourth quarter due to a continued strong upward trend in sales to Systembolaget, the prioritised export market, as well as increased sales within the private brand segment. The sale of bottles increased by 25 percent in 2015 compared with the previous year.

• In total, 214,000 bottles were sold in 2015 (169,500), which is the highest volume that Mackmyra has achieved so far on a yearly basis. Selling 83,000 bottles, the fourth quarter showed the highest volume that Mackmyra has reached for any one particular quarter.

• Sales to Mackmyra’s prioritised export markets (excluding border trade and Travel Retail), where the development in Germany has come furthest along, increased by approximately MSEK 3.7, amounting to approximately MSEK 7.0, representing 19 percent of total bottle sales in 2015.

• During the year, Mackmyra developed the private brand segment, which represents MSEK 2.5 of the total increase in sales for 2015.

• MACK by Mackmyra, which was introduced to Systembolaget’s to-order product range during the quarter, experienced high sales volume and thus has been guaranteed a place in Systembolaget’s ordinary product range as of March 2016. MACK by Mackmyra sells for SEK 299 at Systembolaget and is a strategic step in the price segment where the majority of the volumes of whisky are sold today.

• Motörhead Whisky, which is sold to a distributor, sold very well during the quarter, and it will have a place in Systembolaget’s ordinary product range as of March 2016.

• Sales of Casks and Experiences for the year 2015 increased by 11 percent. One important success factor behind the positive trend is the whisky warehouse that was established in Lofsdalen. During the fourth quarter, sales increased by 2 percent.


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SIGNIFICANT EVENTS DURING THE FOURTH QUARTER • Sales to Systembolaget and Mackmyra’s

prioritised export markets showed strong development during the quarter.

• The fourth quarter’s cash flow after capital

expenditures was positive and amounted to MSEK 3.6 (-2.4).

• MACK by Mackmyra was introduced to

Systembolaget’s to-order product range.

• Vinterrök, Mackmyra’s winter edition, was

launched for sale at Systembolaget on 20 November.

• The most highly situated whisky warehouse in Europe, with its sky bar in Lofsdalen at the top of Hovärken, 1,125 metres above sea level, was inaugurated in the beginning of December 2015

• At the C2C Spirits Cup in Germany, Mackmyra’s whisky was awarded gold for Svensk Rök and silver for Svensk Ek and Vinterrök.

EVENTS AFTER THE END OF THE YEAR • Sales in the month of January show a continued

increase compared with the previous year.

• MACK by Mackmyra takes its place in Systembolaget’s ordinary product range as of March 2016.

• As well, Motörhead Whisky will be sold as part of Systembolaget’s ordinary product range and to export markets as of March 2016. As a part of this, Mackmyra sold another issue of 5,000 bottles in January.

• Mackmyra whisky received five gold and two silver awards in the 2016 edition of Wizards of Whisky.

Mackmyra in Systembolaget’s Ordinary Product Range

In March 2016, the flagship products of Svensk Ek, Svensk Rök and Mackmyra Brukwhisky will be joined in Systembolaget’s ordinary range of products by the MACK by Mackmyra and by the private brand cooperation Motörhead Whisky.


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A MESSAGE FROM THE MANAGING DIRECTOR Mackmyra increased sales by almost 20 percent in 2015. The number of bottles sold increased and amounted to 214,000, which is the highest volume that Mackmyra has sold in a year so far. The growth is a result of the action plan that was begun in 2014. The action plan has been implemented as scheduled and it currently involves us focusing on sales work in selected areas, as well as resulting in lower costs and a sharp focus on cash flow.

The growth we demonstrated in 2015 is a result of our strategy within the following areas: - our prioritised export markets, France, Germany, Belgium and United Kingdom. - Private Brand, exclusive bottling in cooperation with or on behalf of others - MACK, our new single malt whisky for the wide demographic of those who like whisky in a lower price segment Basically, we are focusing on a few selected markets and meeting our customers at conventions, events and tastings. This offers many opportunities for tastings and good responses regarding flavour, quality and the story. Along with our innovative concept and product development, it sets the stage for continued positive sales trends. We are doubling sales for the second year in a row on our prioritised export markets, which currently represent 20 percent of our bottle sales. Germany is the engine that has demonstrated very good growth during the year. In addition to the interest for such Craft distillers increasing considerably in Europe, the growth can be explained by Mackmyra’s wide and innovative offers attracting the growing number of whisky enthusiasts located in Europe. Experience from previous investments shows us that sales do not grow quickly merely through long-distance activities. These days, we

meet our customers on site in order to present our whisky for them to taste. In 2016, we will continue with our gradual expansion on the selected markets. The private brand segment is relatively new area for us and it serves as a tool for using our well-filled maturation stock in order to increase sales and thereby to improve cash flow. However, it proved to be very successful as early as 2015. This is a pleasant combination of the expertise we have developed from all the Limited Editions over the years and the personal aspects that the Reserve Casks represents. Sweden Rock Whisky and Motörhead Whisky represent the large volumes, while we have also made a few smaller editions. The field has great potential both in Sweden and in Europe, and it is a prioritised area in our growth plan for 2016. MACK is perhaps the most interesting phenomenon we are bringing to the market right now. The fact is that approximately 90 percent of all sales of whisky at Systembolaget is of whisky costing less than SEK 350. The major sellers, which are priced at around SEK 300, sell between 100,000 and 700,000 bottles per year at Systembolaget alone, while at the same time the segment lacks a Swedish alternative. MACK, which costs SEK 299 at Systembolaget, already fills that gap. As of March, MACK will join Systembolaget’s ordinary product range following very successful qualifying sales figures in the fourth quarter via the to-order product range. That said, I also want to emphasise that the work in recent years on efficiency, on forming a tighter organisation, on economising our cash flow, on focusing on meeting customers in the field and on smart cooperation will all continue. Even though we had a positive cash flow after capital expenditures last quarter, a lot of work still needs to be done before we experience substantial surpluses. In 2015, we have taken Mackmyra to a point where it realised a respectable level of growth with controlled costs and thus we have set the stage for us to be able to continue. Here at Mackmyra, we also find this work to be pleasant and inspiring.

Magnus Dandanell Managing Director Mackmyra Svensk Whisky AB PS: Do not miss out on a visit to Lofsdalen’s Skybar this winter. More information can be found here.

140 150 160 170 180 190 200 210 220

NUMBER OF BOTTLES SOLD 12 MONTHS ROLLING (THOUSANDS)


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MACKMYRA SVENSK WHISKY Mackmyra Svensk Whisky AB (publ) was founded in 1999 is the first malt whisky manufacturer in Sweden. The company has successfully launched the first single malt whisky in the form of personal 30-litre casks and single malt whisky in bottles. The business operates in Mackmyra Whiskyby outside of Gävle with its marketing operation in Stockholm and even through the subsidiaries Mat och Upplevelser i Kungsbäck AB and Mackmyra Swedish Whisky GmbH with its headquarters in Hamburg. Mackmyra has roughly 6,300 shareholders and B-shares are listed on Nasdaq First North. MARKET In Sweden, Systembolaget’s total sales of single malt whisky increased in 2015 by approximately 10 percent (2) compared with the previous year. The trend for New World Whisky, whisky from non-traditional countries, continues to be positive. Many new distilleries are starting up all over the world, and the consumers and media have taken great interest in them.

NET SALES, EARNINGS AND CASH FLOW Net sales

Whisky sales experience considerable seasonal variations. For Mackmyra, the second and fourth quarters have historically been stronger than the first and third quarter; however, these variations have been evened out in 2015. Net sales excluding alcohol tax amounted to MSEK 19.8 (17.4) during the quarter, which was an increase of 14 percent compared with the previous year. Net sales excluding alcohol tax increased in 2015 by 19 percent to MSEK 62.1 (52.1).

During the fourth quarter, Casks and Experiences constituted 32 percent (36), Bottles 68 percent (64) of the net sales excluding alcohol tax. For all of 2015, Casks and Experiences constituted 39 percent (41), Bottles 61 percent (59) of the net sales excluding alcohol tax. There is a clear trend showing a growth in the share of bottle sales. This is largely due to sales of bottles being more quickly established on foreign markets. Profits Gross profits before under-absorptions amounted to MSEK 10.6 (8.4) for the first quarter, with a gross profit margin of 53 percent (48), and for 2015 amounted to 32.8 (31.3) with a gross profit margin of 53 percent (60). The gross profits during under-absorption amounted to MSEK 8.0 (6.6) for the fourth quarter and amounted to MSEK 21.5 (19.9) for 2015. Profits were then encumbered by expenses for under-absorption in the amount of MSEK 2.5 (1.8) for the quarter and by MSEK 11.3 (11.4) for 2014 and 2015 due to the low distillation volume. Thus, it is substantial that the low distillation volume strikes negatively against gross profits as profits are encumbered by fixed costs that cannot reasonably be charged to the value of the maturation stock with regard to the low distillation volume, known as under-absorption. The lower distillation volume contributes to a substantially better cash flow, but it has a negative effect on earnings when the fixed manufacturing costs cannot fully be distributed onto the distilled volumes. Other operating costs amounted to MSEK 11.1 (11.0) for the fourth quarter and MSEK 38.9 (42.3) for 2015. The 8 percent lower overhead cost level for 2015 is a result of the action plan that was implemented in the early spring of 2014. Operating profits before depreciation and under-absorption, that reflect the underlying profitability, have improved and amounted to MSEK -0.2 (-0.4) for the fourth quarter and MSEK -4.4 (9.7) for all of 2015. Operating profits for the fourth quarter amounted to MSEK -3.1 (-4.4), which is due to the improved gross profits. Operating profits for 2015 improved by MSEK 5,1 through better gross profits and lower operating costs, and amounted to MSEK -17.3 (-22.4).

Earnings after tax amounted to MSEK -5.0 (-8.0) for the fourth quarter and amounted to MSEK -26.1 (-32.4) for 2015.

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SALES PER QUARTER (MSEK)

2013 2014 2015


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Cash Flow Cash flow after capital expenditures was positive for the fourth quarter and amounted to MSEK 3.6 (-2.4). Cash flow after capital expenditures for 2015 amounted to MSEK -7.0 (-27.0), which was an improvement of MSEK 20.0 compared with the previous year. The improvement of the cash flow after capital expenditures from 2013-2015 is shown below. MACK by Mackmyra and products within the private brand segment, such as Motörhead Whisky, are essential measures for turning around the cash flow.

BOTTLES The majority of Mackmyra’s sales take place in Scandinavia, as well as within Travel Retail and in border shopping around the Baltic Sea. Mackmyra has concentrated its own marketing activities to these markets and the prioritised export markets in Germany, France, Belgium and the United Kingdom. Other export markets are managed by external cooperative partners and distributors.

Sales of Bottles increased during the fourth quarter by 20 percent to MSEK 13.4 (11.1). During 2015, sales increased by 25 percent to MSEK 37.5 (MSEK 30.0).

The number of bottles sold amounted to 83,500 (55,500) during the fourth quarter, which was an increase of 50 percent compared with the previous year. In 2015, the number of bottles sold increased by 26 percent to 214,000 (169,500).

Full Year 2015

Sales of bottles in 2015 increased by 25 percent of MSEK 7.5 compared with the previous years and the number of bottles sold increased 26 percent. The number of bottles sold, 214,000, thereby reached a historic level in 2015.

The increase in sales for 2015 is connected with:

• Mackmyra’s prioritised export markets

• Systembolaget

• New products

• Private brand and cooperation

Mackmyra’s prioritised export markets

Sales to the prioritised export markets increased by MSEK 3.7 to approximately MSEK 7.0 in 2015, which is more than double the figures for 2014. This means that sales to these markets, where sales to Germany have done the most, together represented 19 percent (11) of total bottle sales for 2015.

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CASH FLOW AFTER CAPITAL EXPENDITURES (MSEK)

2013 2014 2015


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Systembolaget

Sales to Systembolaget increased by 10 percent in 2015. The increase is to a great degree attributable to Svensk Ek, Mackmyra Brukswhisky, the most recent releases of seasonal whisky and the sales of MACK by Mackmyra in the fourth quarter. New products During the year, Svensk Ek has replaced Den Första Utgåvan (The First Edition) in Mackmyra’s regular product range and is sold in a new packaging / gift box. During the year, Svensk Ek was upgraded to containing 10 percent (previously 5 percent) of whisky stored in Swedish oak casks, which produces a more powerful and spicier flavour. On 1 October 2015, Mackmyra introduced MACK to Systembolaget’s to-order product range. The sale price at Systembolaget is SEK 299.

MACK by Mackmyra is a single malt whisky made from Swedish ingredients in Mackmyra’s traditional and hand crafted way. With MACK by Mackmyra, Mackmyra is taking a strategic step in the price segment where the majority of the volumes of whisky are sold today. Only in Sweden a total of about 9 million bottles per year of all whiskey (malt, bourbon, blended, rye, etc.) are sold at Systembolaget. Up to 90 percent of the whisky sold in Sweden today consists of whisky selling for up to SEK 350 per bottle. This price segment is currently dominated by some twenty brands each sold annually in volumes of about 100,000 to 700,000 bottles. Among the top sellers around SEK 300 per bottle are classics such as Famous Grouse, Tullamore Dew, Jameson, Glen Grant and Jack Daniels. Mack by Mackmyra challenge the segment with the first Swedish alternative.

Upon selling to Systembolaget, MACK by Mackmyra has lower margins than do Mackmyra’s other products, but it improved the opportunities to increase sales volumes and further to improve cash flow. Private brand and cooperation In the past year, Mackmyra has improved the offering within the private brand segment, which constituted MSEK 2.5 of the year’s increase in sales. The sales pertain mainly to Motörhead Whisky and Sweden Rock Edition that were mainly sold at Systembolaget.

Motörhead Whisky, which is sold to an external distributor, will find its place among Systembolaget’s regular product range as of 1 March and also be sold on export markets.

In addition, a number of smaller bottlings have been sold via Systembolaget during the year, for example to Peking Fanz in Norrköping in order to celebrate its 2015 Swedish football championship. The Fourth Quarter The increased sales in the quarter are attributable to Systembolaget, private brand and to the prioritised export markets. Sales to the prioritised export markets continue to increase and they constituted 25 percent of total bottle sales during the quarter. During the fourth quarter, Mackmyra has strengthened the organisation with another area sales manager in Germany. Mackmyra’s perennial products such as Svensk Ek, Mackmyra Brukswhisky and Svensk Rök showed clear increases in volumes during the quarter.

MACK by Mackmyra, which was launched onto Systembolaget’s to-order product range during the quarter, has experienced good sales volumes. MACK by Mackmyra takes its place in Systembolaget’s ordinary product range as of March 2016.


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Sales of the seasonal edition, Vinterrök, which was launched at Systembolaget and on some of Mackmyra’s export markets during the quarter, showed sales volumes at the level of the 2014 winter edition.

CASKS AND EXPERIENCES

Fourth quarter sales of Casks and Experiences amounted to MSEK 6.4 (6.3), which was an increase of 2 percent compared with the previous year. During 2015, sales increased by 11 percent to MSEK 24.4 (21.9). One important success factor behind the increased sales in casks was the year’s co-founder campaign, which was also associated with the whisky warehouse established in Lofsdalen at the top of Hovärken, 1,125 metres above sea level. The warehouse, which is the highest whisky warehouse

in Europe and featuring a sky bar, was inaugurated in the beginning of 2015.

The establishment, which is a cooperation with Lofsdalen Fjällanläggningar, offers opportunities for Mackmyra to increase its target audience geographically through local cooperation, and also by supplementing the winter and summer season with an attractive selection of cask and whisky experiences.

The Special Cask sales campaign was carried out during the fourth quarter. In the Special Cask, three of Mackmyra’s most popular flavours are combined in one and the same cask: Svensk ek, Amerikansk ek and Olorosvin.

As a step toward further increasing sales, the organisation was strengthened by yet another seller in southern Sweden during the fourth quarter.

Even during 2015, Mackmyra put out large volumes to the Swedish market, approximately 75,000 reserve bottles (75,000), of Mackmyra’s best whisky through the supply of bottles from previously sold customer casks. This can temporarily meet the demand for Mackmyra’s ordinary bottles at Systembolaget, but it continues to be well distributed in the somewhat longer terms when it is offered to friends and acquaintances. At the same time, the high levels of reserve bottles help slowly to increase the sales of Mackmyra’s regular bottles at Systembolaget. Mackmyra’s visitor centre in Mackmyra Whiskyby, just like before, offers visits, whisky tastings, distillery and warehouse tours and conferences. Mackmyra is targeted toward private individuals and companies. Mackmyra’s visitor centre plays an important part in supporting the marketing of Mackmyra’s whisky experiences regarding both bottles and casks.

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SALES, CASKS AND EXPERIENCES (MSEK)

2013 2014 2015


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AWARDS AND RECOGNITIONS Appointments and prices are an important part of marketing and a strength in discussions with international partners. The quality on Mackmyra whisky continues to get attention both internationally and in Sweden. Stockholm Beer and Whisky Festival

In October, Mackmyra was awarded four medals at the Stockholm Beer and Whisky Festival: Gold: Mackmyra Reserve Elegant Bourbon and Mackmyra Reserve Prestored Sherry Silver: Mackmyra Sommartid Bronze: Mackmyra Svensk Ek C2C Spirits Cup, Germany In October, Mackmyra took part in the C2C Spirits Cup in Germany and won three medals: Gold: Svensk Rök Silver: Svensk Ek and Vinterrök

The competition was carried out as a blind test by consumers and over 75 kinds of whisky took part among the various classics. Wizards of Whisky Awards 2016 Mackmyra whisky received five gold and two silver awards in the 2016 edition of Wizards of Whisky.

Gold Mackmyra Reserve Black Cask 42.3% Sweden Mackmyra Moment Fenix 45.5% Sweden Mackmyra Vinterrök 46.1%, Sweden Mackmyra Reserve Special Oak 51.2%, Sweden Mackmyra Blomstertid 46.1% Sweden

Silver Mackmyra Sommartid 46.1% Sweden Mackmyra Svensk Ek 46%, Sweden

Dominic Roskrow commented on the distinctions on his blog: ”Sweden can make claim to being the world’s best New World Whisky nation after winning the clash of the European titans.” PRODUCTION DISTILLATION During the quarter, approximately 23,000 bottles (30,000) were distilled, which means that 60,000 bottles (78,000) were distilled in 2015. The low distillation rate is temporary, and is an important part of the ongoing action plan to achieve a neutral cash flow. The supply capacity for finished whisky is secure thanks to the maturation warehouses being well filed. Mackmyra plans gradually to increase the pace of distillation in 2016-2017. MATURITY WAREHOUSING The maturity warehouse’s book value decreased in value during the quarter by MSEK 0.2 to a total of MSEK 171.4 as of 31 December 2015. The maturity warehouse’s book value includes, like last year, the costs for maturity warehousing. The maturity warehouse was valued at the lower value between the manufacturing cost and the net sales value as of the balance sheet date. Manufacturing costs include the costs for warehousing during the period until the moment the whisky is mature enough for sale.

Having finished whisky of the correct age and recipe mix in sufficient volumes is a crucial condition necessary in order to increase sales in a long-term perspective. The maturity warehouse that has been built up over several years allows Mackmyra today to adapt the manufacturing to a higher degree in accordance with the sales growth trends without jeopardising future delivery capacity. Approximately 30 percent of Mackmyra’s total maturity warehouse consists of whisky having been stored from five to ten years. This means that Mackmyra currently has a high supply capacity, even of somewhat older whisky.


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FINANCIAL INFORMATION STAFF AND ORGANISATION During the fourth quarter, the group have an average of 35 full-time employees (36). The average number of full-time employees for 2015 amounted to 35 (39) people. Corporate administration consists of a CEO, CFO, sales and marketing director, master blender and a supply manager. What follows is the trend concerning the average number of full-time employees per quarter.

CAPITAL EXPENDITURES Capital expenditures in 2015 amounted to MSEK 1,8 (2.2) of which MSEK 0.4 (0.9) were made in the fourth quarter, and pertained to capital expenditures on casks for maturity warehousing of whisky, as well as on IT systems. CASH FLOW Cash flow from the ongoing business operation in the fourth quarter amounted to MSEK -1.2 (-3.5). Change in working capital amounted to MSEK 5.2 (2.0), of which the change in the inventory constituted MSEK 0.6 (2.7). Cash flow to capital expenditures was MSEK -0.4 (-0.9) Cash flow from financing amounted to MSEK -0.1 (-0.1) Cash flow improved in the fourth quarter by MSEK 6.0 and amounted to MSEK 3.6 (-2.4). LIQUIDITY AND FINANCING As of the balance sheet date, cash and cash equivalents amounted to MSEK 6.0 compared with MSEK 2.1 as of 31 December 2014. Non-utilised bank overdraft facility amounted to MSEK 6.2 compared with MSEK 3.7 as of 31 December 2014. In order to improve the company’s financial position, the Annual General Meeting decided on 30 May 2015 to implement a preferential issue.

The subscription time ended on 25 June 2015 and the preferential issue was subscribed for 88 percent and brought Mackmyra MSEK 9.8 before issue expenses totalling MSEK 0.9. Issue funds were obtained in July of 2015. The business are inherently capital intensive and liquidity is sensitive to variations insales. Both the Board and the management have therefore highly focused on financing issues and capital requirements. As of the balance sheet date, long-term liabilities amounted to MSEK 174.0 compared with MSEK 173.8 as of 31 December 2014, of which MSEK 3.8 (6.3) pertained to bank overdraft facilities utilised and MSEK 12.7 (14.3) pertained to interest-free liabilities attributable to loans from the company’s cask owners. Bank overdraft capacity amounts to MSEK 10.0 (10.0). EQUITY During the year, the implemented preferential issues increased the number of shares from 8,050,792 shares to 9,045,924 shares. Share capital thereby increased from 8,052,792 Swedish crowns to 9,045,924 Swedish crowns. The issue was registered with the Swedish Companies Registration Office on 16 July 2015. RISKS AND UNCERTAINTIES For a description of the risks and uncertainties, please refer to Mackmyra’s Annual Report for 2014, page 26. SHARES Shares are listed on First North. The shares’ closing rate as of 30 December 2015 was SEK 8.95, compared with SEK 10.45 as of 30 September 2015. During the quarter, 336,899 shares were turned over, compared with 546,111 shares during the corresponding period in the previous year. In total, 1,413,256 (2,366,064) shares were turned over in 2015. The shares’ price trend for 2015 is shown below.

DIVIDEN The board intended to recommend to the Annual General Meeting that no dividends be paid.

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AVERAGE NUMBER OF EMPLOYEES

2013 2014 2015


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ACCOUNTING PRINCIPLES This interim report has been prepared with the application of the Annual Accounts Act and the Swedish Accounting Standards Board's General Guidelines BFNAR 2012:1 Annual Reports and Consolidated Statements (K3). The same accounting principles have been applied as in the annual report for 2014. For a more exhaustive

Description of the accounting principled applied, please refer to the annual report for 2014. All the information in this quarterly report pertains to the group, which consists of Mackmyra Svensk Whisky AB and the wholly owned subsidiaries Mat och Upplevelser i Kungsbäck AB, as well as Mackmyra Swedish Whisky GmbH.

The above list of owners reflects the ownership structure as of 31 December 2015.

* The founder group consists of the eight founders (Annika Berg, Jonas Berg, Astrid Dandanell, Magnus Dandanell, Jennie Kastengren, Carl-Johan Kastengren, Rikard Lundborg and Malin Lövemark), Spiritum Spritaktiebolag AB, as well as the Gillesvik AB group.


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FINANCIAL REPORTS

INCOME STATEMENTS

2015 2014 2015 2014 INCOME STATEMENT (1000 SEK) Oct - Dec Oct - Dec Full year Full year Net sales 29,379 23,324 81,675 68,067 Minus: Alcohol tax -9,593 -5,950 -19,593 -15,979 Net sales excluding alcohol tax 19,786 17,375 62,082 52,089 Cost of goods sold -9,218 -9,091 -29,233 -20,753 Under-absorption -2,520 -1,707 -11,327 -11,390 Gross profit 8,047 6,576 21,522 19,945 Other operating expenses Sales expenses -7,611 -7,139 -24,127 -26,631 Administration costs -3,518 -3,825 -14,735 -15,682 Operating profit -3,082 -4,388 -17,341 -22,368 Net financial items -1,769 -2,003 -8,643 -8,486 Earnings after financial items -4,851 -6,391 -25,984 -30,854 Tax -123 -1,566 -123 -1,566 Earnings after tax -4,974 -7,957 -26,106 -32,420


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BALANCE SHEETS

BALANCE SHEETS (1000 SEK) 31 Dec 2015 31 Dec 2014 ASSETS NON-CURRENT ASSETS 121,195 131,320 CURRENT ASSETS Inventory 184,347 186,948 Other current assets 20,096 21,801 Cash and bank 5,950 2,105 210,393 210,853 TOTAL ASSETS 331,588 342,173 EQUITY AND LIABILITIES EQUITY 119,074 136,165 LONG-TERM LIABLITIES AND PROVISIONS 178,375 175,759 SHORT-TERM LIABILITIES 34,139 30,250 TOTAL EQUITY AND LIABILITIES 331,588 342,173

CASH FLOW ANALYSES

CASH FLOW (1000 SEK)

2015 Oct - Dec

2014 Oct - Dec

2015 Full year

2014 Full year

Cash flow from operating activities -1,190 -3,487 -13,341 -19,590

Change in working capital

Change in inventory 602 2,711 2,600 -1,681

Change in other working capital 4,589 -680 5,594 -3,520

Cash flow after changes in working capital 4,001 -1,456 -5,147 -24,791

Cash flow to capital expenditures -414 -939 -1,819 -2,196

Cash flow after capital expenditures 3,587 -2,395 -6,966 -26,987

Cash flow from financing -100 -94 10,811 25,172

Cash flow for the financial period 3,487 -2,489 3,845 -1,815

Cash and cash equivalents upon the beginning of the period 2,464 4,594 2,105 3,921 Cash and cash equivalents at the end of the period 5,950 2,105 5,950 2,105


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CHANGE IN EQUITY

1000 SEK 2015 2014 Equity at the beginning of the period 136,165 148,620 New share issue 9,846 22,007 Issue expenses -860 -1,919 Convertible bonds, the value of the conversion rights 1,615 - Translation difference 30 -123 Profits for the year -26,106 -32,420 Equity at the end of the period 120,689 136,165


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KEY RATIOS

2015 2014 2015 2014 Key ratios Oct - Dec Oct - Dec Full year Full year Net sales excluding alcohol tax, MSEK 19.8 17.4 62.1 52.1 Growth in sales excluding alcohol tax 14% -20% 19% -19% Sales, Bottles, MSEK 13.4 11.1 37.5 30.0 Sales, Casks and Experiences, MSEK 6.4 6.3 24.3 21.9 Gross profits before under-absorption, MSEK 10.6 8.4 32.8 31.3 Gross profit margin before under-absorption, percent 53% 48% 53% 60% Minus: under-absorption -2.5 -1.8 -11.3 -11.4 Gross profits, MSEK 8.0 6.6 21.5 19.9 Gross profit margin, percent 41% 38% 35% 38% Operating profits before depreciations (EBITDA) and under-absorption, MSEK -0.2 -2.4 -4.4 -9.7 Operating profits, MSEK -3.1 -4.4 -17.3 -22.4 Interest expenses -1.8 -2.0 -8.6 -8.5 Tax -0.1 -1.6 -0.1 -1.6 Earnings after tax -5.0 -8.0 -26.1 -32.4 Cash flow after capital expenditures, MSEK 5.2 -2.4 -5.4 -27.0 Cash flow, MSEK 3.5 -2.5 3.8 -1.8 Capital expenditures, MSEK 0.4 0.9 1.8 2.1 Maturity warehouse, book value, MSEK 171.4 173.1 171.4 173.1 Financial net liability excluding convertible debt instruments, MSEK 146.7 159.4 146.7 159.4 Quick ratio, percent 95% 91% 95% 91%

Interest coverage ratio, times -1.7 -2.6 -2.0 -2.6

Equity, MSEK 120.7 136.2 120.7 136.2 Equity per share, SEK 13.34 16.71 13.34 16.71 Equity ratio, percent 36% 40% 36% 40% Number of shares before full dilution 9,045,924 8,150,792 9,045,924 8,150,792 Number of shares after full dilution 9,946,521 8,251,389 9,946,521 8,251,389 Basic earnings per share, SEK -0.55 -0.98 -3.19 -4.90 Diluted earnings per share, SEK -0.55 -0.98 -3.19 -4.90 Average number of shares before full dilution 9,045,924 6,622,519 8,175,657 6,622,519 Average number of shares after full dilution 9,946,521 6,724,116 8,942,920 6,724,116 Average number of employees 35 36 35 39

This quarterly report has not been subject to examination by the company’s auditor.


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FINANCIAL CALENDAR, GLOSSARY AND DEFINITIONS DATE OF PUBLICATION OF FINANCIAL INFORMATION: 8 April 2016 Annual Report for 2015 12 May 2016 Quarterly Report Jan-Mar 2016 14 May 2016 Annual General Meeting 25 August 2016 Quarterly Report Apr-Jun 2016 16 November 2016 Quarterly Report Jul-Sep 2016 GLOSSARY AND DEFINITIONS Bottle 700 ml raw spirits or whisky estimated to have an alcoholic concentration of at least 40 percent and which is distributed and sold via traditional channels. Cask Personal whisky cask ordered and manufactured as per customer order. Delivered after an average maturity warehousing of five years in approximately 48 whisky bottles of 500 ml. Angle’s share Approximately three percent of the whisky evaporates out of the oak cask each year during storage. This is known as the Angel’s share. Gross profit margin (%) Gross profits divided by net sales. Operating margin (%) Operating profits divided by net sales. Quick ratio Total of short-term receivables, cash and cash equivalents and non-utilised bank overdraft facility divided by short-term liabilities.

Financial net liability excluding convertible debt instruments Interest-bearing liabilities excluding convertible debt instrument - cash and bank balances Equity ratio (%) Equity divided by the balance sheet total. Return on equity (%) Earnings after tax divided by average equity. Interest coverage ratio (times) Earnings before interest expenses divided by interest expenses. Earnings per share (SEK) Earnings after tax divided by the average number of shares during the period. ADDRESSES Mackmyra Svensk Whisky AB (publ) Corp. ID no. 55667-4610 Mackmyra Whiskyby Kolonnvägen 2 802 67 Gävle Telephone: +46 (0) 26 541 880 Fax: +46 (0) 26 541 881 E-mail: [email protected] Home page: www.mackmyra.se, www.mackmyra.com CERTIFIED ADVISOR Erik Penser Bankaktiebolag Box 7405 103 91 Stockholm Visiting address: Biblioteksgatan 9 Telephone: 08 – 463 80 00 E-mail: [email protected] Home page: www.penser.se

mackmyra svensk whisky ab (publ)€¦ · mackmyra svensk whisky ab (publ) year-end report q4...

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