AAK AB has issued, at attractive levels, a senior unsecured bond for a total of SEK 500 million with a tenor of five years. The bond carries a floating interest rate of three months STIBOR plus 97 basis points. The proceeds from the bond issue will be used to finance AAK’s recent acquisition in Europe, the increased ownership in AAK Kamani in India, capacity investments, and to diversify the company’s debt structure. AAK AB established an MTN program (Medium Term Note) in November 2018 with a framework amount of SEK 4,000 million. In addition to the above-mentioned bond, the company

JULY–SEPTEMBER 2019 •    Total sales MSEK 28 214 (25 821) •    Organic sales growth 4 percent (6) •    Operating income before amortization MSEK 1 574 (1 452) •    Operating margin 5.6 percent (5.6) •    Items affecting comparability (IAC) MSEK –60 (–268), relating to IS/IT transformation programs •    Earnings per share SEK 2.56 (2.07) •    Earnings per share, before IAC, SEK 2.68 (2.61) JANUARY–SEPTEMBER 2019 •    Total sales MSEK 82 642 (74 643) •    Organic sales growth 5 percent (6) •    Operating income before amortization MSEK 4 241 (3 829) •    Operating margin 5.1

Tracy Garrison, President HEXPOL Compounding Americas and HEXPOL TP Compounding, has decided to leave the company for a position outside the HEXPOL Group. Tracy Garrison will leave end of December 2019 and thereafter CEO Mikael Fryklund will be acting President HEXPOL Compounding Americas and HEXPOL TP Compounding until a successor has been appointed. “Tracy Garrison has been instrumental in our successful growth strategy to considerably expand the Rubber Compounding business in Americas. Likewise he has built up a very strong and capable team and culture in our American operations. I

Third quarter 2019 - Net sales increased by 1 per cent to 956.3 MEUR (946.1). Using fixed exchange rates and a comparable group structure (organic growth), net sales decreased by -3 per cent - Operating earnings (EBIT1) increased by 2 per cent to 235.8 MEUR (231.8) - Earnings before taxes, excluding non-recurring items, amounted to 229.3 MEUR (225.7) - Net earnings, excluding non-recurring items, amounted to 188.0 MEUR (185.1) - Earnings per share, excluding non-recurring items, amounted to 0.51 EUR (0.51) - Operating cash flow, excluding non-recurring items, increased to 174.2 MEUR (

Entrance Systems division has since its foundation in 2006 successfully grown from SEK 3 bn to above SEK 25 bn in annual revenue. To enable continued and accelerated growth of the division in the ASSA ABLOY Group, a new divisional structure will be formed around four business segments: Pedestrian, Industrial, Residential and Perimeter Security. Perimeter Security is currently part of the Opening Solutions Americas division and will be transferred to the Entrance Systems division to create new opportunities to scale up and potentially drive a global expansion. The business segments will

AAK Group · Total volumes for the quarter amounted to 571,000 MT (564,000), organic growth of 1 percent (4). · Operating profit, including a positive currency translation impact of SEK 24 million and acquisition costs of SEK 6 million, reached SEK 563 million (526), an improvement of 7 percent. Excluding acquisition costs, operating profit per kilo improved by 8 percent to SEK 1.00 (0.93). · Net result amounted to SEK 398 million (359), an improvement of 11 percent. · Earnings per share increased by 10 percent, to SEK 1.53 (1.39). · Cash flow from operating

Entrance Systems division has since its foundation in 2006 successfully grown from SEK 3 bn to above SEK 25 bn in annual revenue. To enable continued and accelerated growth of the division in the ASSA ABLOY Group, a new divisional structure will be formed around four business segments: Pedestrian, Industrial, Residential and Perimeter Security. Perimeter Security is currently part of the Opening Solutions Americas division and will be transferred to the Entrance Systems division to create new opportunities to scale up and potentially drive a global expansion. The business segments will

Third quarter · Net sales increased by 13% to SEK 24,034 M (21,191), with organic growth of 4% (5) and acquired net growth of 4% (2) · Strong growth in Global Technologies and Americas and good growth in EMEA and Entrance Systems, while sales declined in Asia Pacific · Five acquisitions signed with combined expected annual sales of about SEK 1,000 M · Operating income (EBIT) increased by 14% and amounted to SEK 3,894 M (3,424), corresponding to an operating margin of 16.2% (16.2) · Net income amounted to SEK 2,697 M (2,384) · Earnings per share amounted

In connection with the release of AAK’s Interim report for the third quarter 2019, we invite you to a press and analyst conference to be held on Thursday, October 24, at 10:00 a.m. CET. The conference will be chaired by Johan Westman, President and CEO, and Fredrik Nilsson, CFO. The presentation will be held in English. The presentation can be followed by phone or via a webcast. Please note that questions may be asked by phone only. To follow the conference by phone, please use one of the following numbers: SE: +46 8 505 583 54 DK: +45 8233 3194 UK: +44 3333 009 035 US: +1 833 823