Bong

Quarterly Report • Feb 14, 2024

Year-end Report Q4, January-December 2023

October – December 2023

• Net sales decreased to SEK 539 million (601)
• Operating profit before depreciation decreased to SEK 39 million (60)
• Operating profit decreased to SEK 4 million (43)
• Earnings after tax amounted to SEK -7 million (22)
• Earnings per share amounted to SEK -0.03 (0.11)
• Cash flow after investing activities amounted to SEK 34 million (66)

January – December 2023

• Net sales decreased to SEK 2,088 million (2,165)
• Operating profit before depreciation decreased to SEK 135 million (165)
• Operating profit decreased to SEK 44 million (98)
• Earnings after tax amounted to SEK -7 million (43)
• Earnings per share amounted to SEK -0.02 (0.21)
• Cash flow after investing activities amounted to SEK 63 million (72)

activities - Q4

Equity ratio Operating profit/loss - Q4 Net sales - Q4

Adjusted net debt

Pension liabilities

IFRS 16

Bong is one of the leading providers of envelope products in Europe that also offers solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are packaging within retail and e-commerce and the envelope market within Eastern Europe. The Group has annual sales of approximately SEK 2.1 billion and about 1,100 employees in 12 countries. Bong has strong market positions in most of the important markets in Europe and the Group sees interesting possibilities for continued development. Bong is a public limited company and its shares are listed on Nasdaq Stockholm (Small Cap).

Key Ratios	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
MSEK	2023	2022	2023	2022
Net sales	539	601	2,088	2,165
EBITDA	39	60	135	165
EBIT	4	43	44	98
Non-recurring items, goodwill	-13	-	-13	-
Adjusted EBIT	17	43	57	98
Earnings after tax	-7	22	-7	43
Earning per share, SEK	-0.03	0.11	-0.02	0.21
Cash flow after investing activities	34	66	63	72
Equity/asset ratio, %	35.3%	33.9%	35.3%	33.9%

Letter to the shareholders

We are confident to reach a double-digit growth in 2024 for our Light Packaging products to support Bong's transformation strategy and at the same time to keep a healthy and sustainable margin level, says Bong's CEO Kai Steigleder.

MARKET AND INDUSTRY

The European paper converting industry as well as the overall business climate remained weak also during the fourth quarter 2023. This was no surprise given the political and economic turbulences in recent months. Inflation levels were still high dampening consumer demand. The outlook for the first six months 2024 regarding the weak macroeconomic conditions remains unchanged.

Our margin levels were good during all four quarters 2023. In combination with our continuous efforts to keep costs under control we managed to have a positive operating profit.

Energy prices for Q1 and Q2 are predicted to remain stable in comparison to Q4 but are of course still on a relatively high level. The war in Israel and resulting terrorist attacks on transport vessels in the Red Sea may again cause supply chain and delivery problems in 2024.

Light Packaging

Currency adjusted sales of Bong's Light Packaging in 2023 was -12,0% vs. 2022. This disappointing result was due to last year's weak market development in e-Commerce and in retail stores across Europe. But we remain very confident on our transformation path because we have the right market offer with our new products and the e-commerce channel will also grow again. For 2024 we predict a strong double digit growth rate in Bong's Packaging segment.

Envelope

The European market for envelopes dropped by 15% in volume sales. Bong performed better than market with envelopes in 2023. This is in line with our strategy for envelopes. Our margins for envelopes remain stable on a healthy level and therefore support the necessary investment into our Light Packaging range. Bong's currency adjusted development in in 2023 was -8,4% compared to 2022.

OPERATING PROFIT

The Group's currency-adjusted sales decreased by -9,7% compared with 2022. Bong's gross margin has decreased compared to 2022 but it is still on a good level. Operating profit before impairment of goodwill decreased to SEK 57 million (98).

The operating profit 2023 was affected negatively by restructuring cost of SEK -4 million (-2) and machine sales have had a positive impact of SEK 10 million (13).

SOUND CASH FLOW AND STABLE ADJUSTED NET DEBT / ADJUSTED EBITDA

Cash flow from operating activities amounted to SEK 83 million (111). Adjusted net debt / adjusted EBITDA according to Bong's Bond loan amounts to 0.83 (0.71).

FOCUS AND STRATEGY

Our strategic goal is to become a diversified paper converter that relies on a wider portfolio of paper converted products with a strong part of sales and activities in the Light Packaging segment.

To achieve this, we invest into Light Packaging while slightly increasing our envelope market share with good margins. The investments are not only in new packaging machinery but also in marketing, trade shows and additional salespeople to convince and gain new customers. We develop and launch promising new products such as our high-end "Turn Over Top" paper carrier bags for the retail segment and our enlarged AirPro Green® padded bag range for e-Commerce.

We are continuously working on improving our productivity, becoming "greener" in terms of energy efficiency and streamlining our factories for cost efficiency.

Finally, I am thanking all our loyal and hard-working employees that will make our transformation process in Bong happen as well as all our stakeholders and shareholders for their continuous support.

Kai Steigleder Chief Executive Officer

Financial overview

Sales and profit

January – December 2023

Consolidated sales for the period reached SEK 2,088 million (2,165). Exchange rate fluctuations had a positive impact on sales of SEK 148 million (73) compared with 2022.

Operating profit decreased to SEK 44 million (98). The Group's gross margin has decreased compared to last year. During the period operating profit was positively affected by capital gains of SEK 10 million (11) attributable to sales of machinery and negatively by impairment of goodwill of -13 MSEK (0). Exchange rate fluctuations for the period had a positive impact on operating profit of SEK 4 million (3).

Net financial items for the period amounted to SEK -39 million (-36).

Earnings before tax amounted to SEK 4 million (62) and reported earnings after tax were SEK -7 million (43).

Bong's total light packaging sales amounted to SEK 585 million (619). Currency fluctuations had a positive impact on light packaging sales of SEK 46 million (22) compared with the corresponding period in 2022.

Bong's total envelope sales amounted to SEK 1,452 million (1,483). Currency fluctuations had a positive impact on envelope sales of SEK 102 million (51) compared to same period 2022.

October – December 2023

Consolidated sales for the period reached SEK 539 million (601). Exchange rate fluctuations had a positive impact on sales of SEK 32 million (35) compared with 2022.

Operating profit decreased to SEK 4 million (43). The Group's gross margin is lower than same period previous year. Exchange rate fluctuations for the period had a positive impact on operating profit of SEK 2 million (2).

Net financial items for the period amounted to SEK -10 million (-10).

Earnings before tax amounted to SEK -6 million (33) and reported earnings after tax were SEK -7 million (22).

Bong's total light packaging sales amounted to SEK 162 million (183). Currency fluctuations had a positive impact on light packaging sales of SEK 10 million (11) compared with the corresponding period in 2022.

Bong's total envelope sales amounted to SEK 361 million (399). Currency fluctuations had a positive impact on envelope sales of SEK 22 million (23) compared to same period 2022.

Cash flow and investments

The cash flow after investing activities increased to SEK 63 million (72) compared to previous year. Cash flow from operating activities before changes in working capital amounted to SEK 78 million (111). Working capital had a positive impact on the cash flow of SEK 5 million (1). At year end the group had unutilized factoring facilities in the amount of SEK 39 million, thus cash flow from oprating activities would amount to SEK 122 million (111) if these had been fully utilized.

Restructuring costs had a negative impact on the cash flow of SEK -4 million (-1). Net investments had a negative impact during the period of SEK -20 million (-39). Investments in the amount of SEK 19 million will be converted into leasing agreements.

Financial position

Cash and cash equivalents at 31 December 2023 amounted to SEK 129 million (SEK 145 million at 31 December 2022). The Group had unutilized credit facilities of SEK 8 million and SEK 39 million unutilized factoring facilities on the same date. Total available cash and cash equivalents thus amounted to SEK 176 million (SEK 153 million at 31 December 2022). Consolidated equity at the end of December 2023 was SEK 555 million (SEK 572 million at 31 December 2022).

Translation of the net asset value of foreign subsidiaries to Swedish Krona and changes in the fair value of pension debt and derivative instruments decreased consolidated equity by SEK 11 million. The interest bearing net loan debt amounted to SEK 426 million, whereof pension debt amounts to SEK 177 million and IFRS 16 leasing contracts amount to SEK 180 million (SEK 448 million at 31 December 2022, whereof pension debt amounts to SEK 163 million and IFRS 16 Leasing contracts SEK 202 million).

The refinancing process of the senior secured bonds with due date in October 2024 is ongoing. Despite the current economic climate, Bong is today in a stronger position. Therefore different refinancing alternatives is also being evaluated. This process will be finalized during Q2 2024.

Employees

The average number of employees during the period was 1,082 (1,134). The Group had 1,034 (1,148) employees at the end of December 2023. Bong has intensively worked on improving productivity and adjusting staff to meet current demand.

Parent Company

The Parent Company's business extends to management of operating subsidiaries and certain Group management functions. Sales were SEK 2.4 million (2.2) and earnings after tax for the period were SEK 8.2 million (28.5).

Events after the end of the period

No material events have occurred after the end of the period.

Risks and opportunities

Business risks for the Bong Group are primarily related to market development and various types of financial risks. There has not been any change to significant risks and uncertain positions since Bong's annual report for 2022 was released. For further information, please refer to Bong's annual report and website bong.com.

Accounting policies

This Year-end report has been prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Application was consistent with the accounting principles outlined in the 2022 annual report and the interim report should be read along with those principles. The figures in this interim report have not been rounded off, which is why notes and tables may not total correct amounts. The purpose is that each sub-row should correspond to its source of origin and therefore rounding differences can occur on the total sum.

The board of directors' proposal for dividend

Bong's current priority continues to be to reduce the debt and improve profitability. Therefore, the board proposes that no dividend will be paid to the shareholders of the parent company for 2023. No dividend was paid for 2022.

Annual General Meeting

The annual general meeting will be held on 15 May 2024 at 1 p.m. in Stockholm. The January-March 2024 interim report will be published in connection with the AGM. The annual report will be available no later than 24 April 2024.

Kristianstad 14 February 2024

Kai Steigleder

Chief Executive Officer

This report has not been subject to examination by the company´s auditors.

Additional information

Kai Steigleder, CEO- & Carsten Grimmer, CFO for Bong AB. Tel +46 44-20 70 00 (switchboard)

Financial Calendar:

• Annual General Meeting, 15 May 2024, Stockholm
• Interim Report January-March 2024, 15 May 2024
• Interim Report January-June 2024, July 2024
• Interim Report January–September 2024, November 2024
• Year-End Report 2024, February 2025

Income statements in summary

		Oct–Dec	Oct–Dec	Jan–Dec	Jan–Dec
		2023	2022	2023	2022
MSEK Revenue	Note 1,2	3 month 539.1	3 month 600.9	12 month 2,088.0	12 month 2,164.7
Cost of goods sold		-455.1	-485.6	-1,760.5	-1,779.9
Gross profit		84.0	115.3	327.5	384.8
Selling expenses		-41.4	-31.8	-157.6	-146.7
Administrative expenses		-41.8 1 )	-39.1	-135.8 1 )	-121.5
Other operating income and expenses		3.0	-1.5	9.5	-18.3
Operating profit		3.8	42.9	43.6	98.3
Net financial items		-9.7	-9.8	-39.5	-36.5
Result before tax		-5.9	33.1	4.1	61.8
Income tax		-1.3	-11.3	-10.8	-19.1
Net result		-7.2	21.8	-6.7	42.7
1) Including non-recurring items of SEK -13.2 million
Total comprehensive income attributable to:
Shareholders in Parent Company		-6.8	22.6	-4.7	44.1
Non-controlling interests		-0.4	-0.8	-2.0	-1.4
Earnings per share		-0.03	0.11	-0.02	0.21
Earnings per share, excluding non recurring items		0.03	0.11	0.04	0.21
Average number of shares		211,205,058	211,205,058	211,205,058	211,205,058
STATEMENT OF COMPREHENSIVE INCOME		Oct–Dec	Oct–Dec	Jan–Dec	Jan–Dec
MSEK		2023	2022	2023	2022
Net result		-7.2	21.8	-6.7	42.7
Other comprehensive income
Items that will not be reclassified to profit or loss:
Actuarial profit/loss on post employment benefit obligations		-25.6	-5.5	-18.3	51.0
		-25.6	-5.5	-18.3	51.0
Items that may be reclassified subsequently to profit or loss:
Cash flow hedges	3	0.0	-0.1	0.0	-0.1
Translation differences		-19.4	18.7	2.3	46.7
Income tax relating to components of other comprehensive income		4.4	2.4	5.3	-8.5
		-15.0	21.0	7.6	38.1
Other comprehensive income for the period. net of tax		-40.6	15.5	-10.7	89.1
Total comprehensive income		-47.8	37.3	-17.4	131.8
Total comprehensive income attributable to:
Shareholders in Parent Company		-47.4	38.1	-15.4	133.2
Non-controlling interests		-0.4	-0.8	-2.0	-1.4

Balance sheet in summary

		31 Dec	31 Dec
MSEK	Note	2023	2022
Assets
Intangible assets	4,5	478.2	489.7
Tangible assets		341.0	370.1
Other non-current assets	6	94.5	91.1
Inventories		224.7	284.7
Current receivables	7	303.5	305.5
Cash and cash equivalents	8	129.4	144.7
Total assets		1,571.3	1,685.8
Equity and liabilities
Equity		554.8	571.8
Non-current liabilities	9	359.4	536.1
Current liabilities	10	657.1	577.9
Total equity and liabilities		1,571.3	1,685.8

MSEK Note 2023 3 month 2022 3 month 2023 12 month 2022 12 month Operating activities Operating profit/loss 3.8 42.9 43.6 98.3 Depreciation, amortisation, and impairment losses 34.8 17.4 91.4 66.3 Interest received 0.2 - 0.3 - Interest paid -8.9 -7.0 -31.7 -24.5 Financial expenses -1.7 -2.4 -4.2 -7.7 Tax paid -5.3 -1.8 -10.7 -7.0 Other items not affecting liquidity -0.7 1.5 -11.1 -14.7 Cash flow from operating activities before changes in working capital 22.2 50.6 77.6 110.7 Changes in working capital Inventories 36.9 30.5 63.4 -57.8 Current receivables -0.3 29.9 5.8 1.1 Current operating liabilities -23.1 -21.9 -63.9 57.3 Cash flow from operating activities 35.7 89.1 82.9 111.3 Cash flow from investing activities Aquisition of intangible and tangible assets incl. advanced payments to suppliers -7.0 -26.9 -29.3 -51.6 Disposal of intangible and tangible assets 4.8 3.3 9.6 12.7 Cash flow from investing activities -2.2 -23.6 -19.7 -38.9 Cash flow after investing activities 33.5 65.5 63.2 72.4 Cash flow from financing activities Change in other long-term debt -6.6 -8.1 -31.7 -26.3

IFRS-16 lease payment -12.8 -14.3 -48.8 -46.6 Cash flow from financing activities -19.4 -22.4 -80.5 -72.9 Cash flow for the period 14.1 43.1 -17.3 -0.5 Cash and cash equivalents at beginning of period 118.1 96.6 144.7 135.3 Exchange rate difference in cash and cash equivalents -2.8 5.0 2.0 9.9 Cash and cash equivalents at end of period 129.4 144.7 129.4 144.7

Oct-Dec

Oct-Dec

Jan-Dec

Jan-Dec

CHANGES IN EQUITY

		Jan-Dec	Jan-Dec
MSEK	Note	2023	2022
Opening balance for the period		571.8	440.0
Dividend, minorities		-0.2	-
Capital Increase, minorities		0,6	-
Non-controlling interests		-2.0	-1.4
Total comprehensive income		-15.4	133.2
Closing balance for the period		554.8	571.8

Cash flow statement

Notes (MSEK)

Note 1 - Net sales and non-current asset by geographical area

		Oct-Dec 2023			Oct-Dec 2022			Jan-Dec 2023			Jan-Dec 2022
Net sales	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.
Sweden	26	12	4	26	18	2	109	48	7	114	65	6
Nordic and Baltics	31	12	0	30	15	0	118	40	0	116	46	0
Central Europe	143	63	5	157	75	7	587	228	22	581	240	29
South Europe	90	33	6	102	30	9	352	117	18	349	112	23
UK	56	28	1	64	27	1	228	98	4	256	101	5
Other	15	14	0	20	18	0	60	55	0	67	55	0
Total	361	162	16	399	183	19	1 452	585	51	1,483	619	63

Note 1 - cont'd

Intangible and tangible assets	2023-12-31	2022-12-31
Sweden	114	118
Nordic and Baltics	3	3
Central Europe	430	438
South Europe*	243	257
UK	28	43
Other	1	1
Total	819	860

* Write-down of goodwill made of SEK 13 million in December 2023.

Note 2 - Segment information

OPERATING SEGMENTS

Operating segments are reported in a manner consistent with the internal reports presented to the chief operating decision maker. The chief operating decision maker is the function responsible for the allocation of resources and the assessment of the operating segments' earnings. For the Group, this function has been identified as the CEO. Segment reporting for the business units areas comprises operating EBITDA before restructuring costs.

SEGMENT INFORMATION

The definition of the segments are primarily related to geografical areas as disclosed below.

The segments apply the same accounting principles as the Group apart from the revenue recognition of sales of raw materials, sales of waste material and rental income. In the internal reporting these are reported as a reduction of cost while in the consolidated statements these are accounted for as revenue.

Central Europe

This segment includes the companies in Germany, Poland, Belgium, Romania and Switzerland.

South Europe and North Africa

This segment includes the companies in France, Belgium, Italy, Spain and Tunisia.

Nordics

This segment includes the companies in Sweden, Norway, Denmark and Finland.

United Kingdom

This segment includes the companies in United Kingdom.

IFRS adjustments

IFRS adjustments contains revenue recognition of sales of raw materials, sales of waste material and rental income. In the internal reporting these are reported as a reduction of cost while in the consolidated statements these are accounted for as revenue.

Net turnover and EBITDA before restructuring costs per segment

			2023-12-31					2022-12-31
Segments	Revenue from	IFRS	Revenue from	Total	EBITDA	Revenue from	IFRS	Revenue from other	Total	EBITDA
	external customers	Adjustments	other segments	revenue		external customers	Adjustments	segments
Central Europe	816.6	21.9	68.4	902.8	69.6	848.3	28.7	95.6	968.8	94.4
South Europe and North Africa	614.4	17.7	32.8	660.3	25.3	605.5	22.3	35.4	655.5	38.3
Nordics	284.2	8.1	32.0	333.3	34.4	296.6	6.6	13.6	328.5	17.8
United Kingdom	321.2	3.9	0.1	324.9	8.9	352.1	4.6	0.6	357.1	12.5
Group transactions and eliminations	0.0	0.0	-133.3	-133.3	0.2	0.0	0.0	-145.2	-145.2	3.1
Total	2,036.4	51.6	0.0	2,088.0	138.4	2,102.5	62.2	0.0	2,164.7	166.1
Restructuring costs					-3.6					-1.6
Depreciations and amortisations					-91.4					-66.3
Financial income					1.4					0.9
Financial expenses					-40.7					-37.3
Result before tax					4.1					61.8
Income tax					-10.8					-19.1
Net result for the year					-6.7					42.7

Note 3 - Financial assets and liabilities

The table below shows the Group's financial assets and liabilities in the form of derivatives measured at fair value. All financial derivatives measured at fair value are in Category 2. These include interest rate swaps and foreign exchange contracts and the valuation is based on the forward interest rates derived from observable yield curves.

2023-12-31	Assets	Liabilities
Currency forwards - cash flow hedges	0.0	0.0
Total	0.0	0.0

2022-12-31	Assets	Liabilities
Currency forwards - cash flow hedges	0.0	0.0
Total	0.0	0.0

For the above contracts the following amounts are found in the hedge reserve under Total comprehensive income; currency forwards - cash flow hedges SEK 0.0 million.

Other financial assets and liabilities

Fair value of the following financial assets and liabilities is estimated to be equal to book value:

• Trade receivables and other receivables
• Other current receivables
• Cash and cash equivalents
• Long-term and short-term loans
• Trade payables and other liabilities
• Other financial assets and liabilities

Information about netting of financial assets and liabilities

The Group does not apply net recognition for any of its other significant assets and liabilities and has no netting agreements with financial counterparties.

Note 4 - Intangible assets	2023-12-31	2022-12-31
Goodwill	475.5	488.0
Other intangible assets	2.7	1.7
Total	478.2	489.7
Note 5 - Goodwill	2023-12-31	2022-12-31
Opening costs	488.0	454.5
Purchase/acqusition	-	-
Write-down	-13.2	-
Exchange rate differences	0.7	33.5
Closing costs	475.5	488.0

Note 6 - Other non-current assets	2023-12-31	2022-12-31
Deferred tax assets	93.7	90.3
Other non-current receivables	0.8	0.8
Total	94.5	91.1
Note 7 - Current receivables	2023-12-31	2022-12-31
Receivables	188.1	192.2
Other current assets	115.4	113.3
Total	303.5	305.5

Note 8 - Cash and cash equivalent	2023-12-31	2022-12-31
Cash/Bank	128.5	144.6
Cash/Bank escrow account	0.9	0.1
Total	129.4	144.7
Note 9 - Non-current liabilities	2023-12-31	2022-12-31
Interest-bearing loans	40.3	196.9
Leasing contracts - IFRS 16	129.3	154.5
Pension debt	177.2	163.2
Deferred tax	4.3	11.0
Other liabilities	8.3	10.5
Total	359.4	536.1
Note 10 - Current liabilities	2023-12-31	2022-12-31
Interest-bearing loans	158.1	31.3
Leasing contracts - IFRS 16	51.0	47.0
Payables	161.9	196.6
Other liabilities	286.1	303.0
Total	657.1	577.9

The Bond loan 2021 is booked to amortised cost which means that the nominal value of the loan SEK 110 million has been reduced for related accrued expenses which will adjust the booked value of the loan at each end of the reporting period until the due date of the loan in October 2024 when the booked value will be the same as the nominal value.

Note 11 - Adjusted interest bearing net loan debt/Adjusted EBITDA

Adjusted interest bearing net loan debt	2023-12-31	2022-12-31
Interest bearing loans, non-current liabilities	346.8	514.6
Interest bearing loans, current liabilities	209.1	78.4
Cash and cash equivalent	-129.4	-144.7
Net Debt	426.5	448.3
Pension debt	-177.2	-163.2
Leasing contracts - IFRS 16	-180.3	-201.6
Adjusted net debt	69.0	83.5

Adjusted EBITDA 12 month rolling	2023-12-31	2022-12-31
Profit	-6.7	42.7
Financial charges	39.3	36.3
Tax	10.8	19.1
Depreciations	91.4	66.3
Restructuring cost	3.6	1.6
Transaction cost	0.2	0.2
Minority result	2.0	0.8
IFRS 16, lease payments	-57.5	-49.2
Adjusted EBITDA	83.1	117.8
Adjusted interest bearing net loan debt/Adjusted EBITDA	0.83	0.71

QUARTERLY DATA. GROUP
MSEK	4/2023	3/2023	2/2023	1/2023	4/2022	3/2022	2/2022	1/2022	4/2021	3/2021	2/2021	1/2021	4/2020	3/2020	2/2020	1/2020
Net Revenue	539.1	476.5	497.5	574.9	600.9	526.8	517.1	519.9	507.0	429.9	407.3	459.7	505.1	420.9	398.8	518.3
Operating expenses	-535.3	-468.5	-487.2	-553.3	-558.0	-496.3	-497.8	-514.4	-494.3	-421.0	-405.0	-437.5	-512.7	-417.9	-418.5	-513.0
Operating profit	3.8	8.0	10.3	21.6	42.9	30.5	19.3	5.5	12.7	8.9	2.3	22.2	-7.6	3.0	-19.7	5.3
Net financial items	-9.7	-9.2	-10.3	-10.3	-9.8	-10.4	-8.0	-8.3	-7.1	-10.8	-9.4	-8.5	-9.3	-9.4	-10.2	-8.4
Profit before tax	-5.9	-1.2	0.0	11.3	33.1	20.1	11.3	-2.8	5.6	-1.9	-7.1	13.7	-16.9	-6.4	-30.0	-3.1

KEY RATIOS		Jan-Dec	Jan-Dec
	Note	2023	2022
Operating margin, %		2.1	4.5
Return on equity, %*		neg	8.71
Return on capital employed, %*		3.96	9.10
Equity/assets ratio, %*		35.3	33.9
Net debt/equity ratio times*		0.77	0.78
Net loan debt/EBITDA*		3.17	2.72
Adjusted interest bearing net loan
debt/adjusted EBITDA*	11	0.83	0.71
Capital employed, MSEK*		1,110.6	1,164.8
Interest-bearing net loan debt, MSEK*		426.5	448.3
Average capital employed, MSEK		1,137.1	1,089.7

For the key figures above, are those marked * considered to be APM (Alternative Performance Measures) and not follow IFRS. They are judged however by management to be important to show shareholders the Group's underlying performance, profitability and financial position. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. For definitions see page 13.

DATA PER SHARE	Jan-Dec 2023	Jan-Dec 2022
Earnings per share, SEK	-0.02	0.21
Earnings per share, excluding non recurring items, SEK	0.03	0.21
Basic equity per share, SEK	2.79 2.63	2.36 2.71
Number of shares outstanding at end of period Number of shares, basic	211.205.058 211,205,058 211,205,058	211.205.058 211,205,058 211,205,058

Five-year summary

Key ratios	2023	2022	2021	2020	2019
Net sales, MSEK	2,088	2,165	1,804	1,843	2,166
Operating profit/loss, MSEK	44	98	46	-19	32
Extraordinary items, MSEK	-	-	-18	-35	-
Profit/loss after tax, MSEK	-7	43	3	-66	-24
Cash flow after investing activities, MSEK	63	72	60	31	78
Operating margin, %	2.1	4.5	2.5	-1.0	1.5
Return on equity, %	neg	8.7	5.2	neg	neg
Average capital employed, MSEK	1,137	1,090	1,004	1,064	983
Return on capital employed, %	4.0	9.1	6.4	neg	3.2
Equity ratio, %	35.3	33.9	31	30	33
Net loan debt, MSEK	427	448	439	471	506
Net loan debt/equity, times	0.77	0.78	1.00	1.14	0.91
Net debt/EBITDA, times	3.2	2.7	3.4	4.9	4.2
Average number of employees	1,082	1,134	1,141	1,195	1,334
Number of shares
Basic number of shares outstanding at end of period	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Diluted number of shares outstanding at end of period	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Average basic number of shares	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Average diluted number of shares	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Earnings per share
Before dilution, SEK	-0.02	0.21	0.02	-0.31	-0.11
After dilution, SEK	-0.02	0.21	0.02	-0.31	-0.11
Earnings per share. before dilution, excluding non-recurring items, SEK	0.03	0.21	0.11	-0.14	-0.11
Earnings per share. after dilution, excluding non-recurring items, SEK	0.03	0.21	0.11	-0.14	-0.11
Equity per share
Before dilution, SEK	2.63	2.71	2.08	1.95	2.50
After dilution, SEK	2.63	2.71	2.08	1.95	2.50
Cash flow from operating activities per share
Before dilution, SEK	0.39	0.53	0.32	0.16	0.48
After dilution, SEK	0.39	0.53	0.32	0.16	0.48
Other data per share
Dividend, SEK	0.00	0.00	0.00	0.00	0.00
Quoted market price on the balance sheet date, SEK	0.9	1.1	0.85	0.6	0.7
P/E-ratio, times	neg	5.4	41.3	neg	neg
Adjusted P/E-ratio, times	neg	0.0	8.06	neg	neg
Price/Equity before dilution, %	0.34	0.41	0.41	0.30	0.29
Price/Equity after dilution, %	0.34	0.41	0.41	0.30	0.29

Definitions

This Report includes financial key data and ratios based on concepts defined in International Financial Reporting Standards (IFRS), Alternative Performance Measurements and company-specific ratios. Definitions are found below.

For historical values: http://www.bong.com/en/investors/reports/historical-values

ADJUSTED EARNINGS PER SHARE

Profit after tax, excluding items affecting comparability, divided by the average number of shares before and after dilution.

ADJUSTED P/E RATIO, TIMES Share price divided by adjusted earnings per share before and after dilution.

AVERAGE CAPITAL EMPLOYED

Capital employed at the beginning of year plus capital employed at year-end divided by two.

AVERAGE EQUITY

Shareholders' equity at beginning of year plus equity at year-end divided by two.

AVERAGE TOTAL ASSETS

Total assets at beginning of the year plus total assets at year-end divided by two.

CAPITAL EMPLOYED

Equity plus interest-bearing liabilities.

EARNINGS PER SHARE

Profit after tax, divided by the average number of shares, before and after dilution.

EBITDA

Operating income before depreciation and amortization.

EQUITY TO ASSETS RATIO, PER CENT

Shareholders' equity divided by total assets. This ratio is a measure of the Group's financial strength.

ITEMS AFFECTING COMPARABILITY

Items of infrequent nature with significant effects, which are relevant for understanding the financial performance when comparing the current period with previous periods. Such items may include but are not limited to results from divestments of property, charges attributable to close-down or restructuring of major units or activities, significant write-downs of tangible and intangible assets and other major non-recurring costs or income.

NET DEBT

Interest-bearing liabilities and provisions less liquid funds and interest-bearing receivables.

NET DEBT/EBITDA, TIMES

Net debt divided by EBITDA. Net debt/EBITDA is a measure of the Group's financial strength.

NET DEBT TO EQUITY, TIMES

Net debt divided by equity. This ratio is a measure of the Group's financial strength.

OPERATING MARGIN, PER CENT

Operating profit divided by net sales. Operating margin is a measure of profitability. It measures how much of revenues remains after operating expenses.

P/E RATIO, TIMES

Share price divided by earnings per share.

RETURN ON CAPITAL EMPLOYED, PER CENT

Earnings after financial income divided by average capital employed. This measure of profitability shows the return of the Group's total balance sheet, less non interest-bearing debt. It is a measure independent of indebtedness. It complements the measure return on equity.

RETURN ON EQUITY, PER CENT

Earnings after tax divided by average equity. This measure measures the return on shareholders' funds for the year and is useful in comparisons of other investments with the same risk profile.

SHARE PRICE/EQUITY, PER CENT

Price per share divided by equity per share.

Parent company

INCOME STATEMENT IN SUMMARY	Jan–Dec	Jan–Dec
MSEK	2023	2022
Revenue	2.4	2.2
Gross profit	2.4	2.2
Administrative expenses	-8.7	-6.6
Operating profit/loss	-6.3	-4.4
Net financial items	9.4	24.1
Result	3.1	19.7
Income tax	5.1	8.8
Net result	8.2	28.5

STATEMENT OF COMPREHENSIVE INCOME	Jan–Dec	Jan–Dec
MSEK	2023	2022
Net Result for the year	8.2	28.5
Other comprehensive income
Net financial items reported directly in consolidated equity:
Cash flow hedges	-	-
Income tax relating to components of other comprehensive income	-	-
Net result, Other comprehensive income	-	-
Total comprehensive income	8.2	28.5

BALANCE SHEET IN SUMMARY	31 Dec	31 Dec
MSEK	2023	2022
Assets
Financial assets	665.2	646.5
Current receivables	4.5	4.0
Cash and cash equivalents	0.1	0.1
Total Assets	669.8	650.6
Equity and liabilities
Equity	399.8	391.6
Non-current liabilities	70.2	180.0
Current liabilities	199.8	79.0
Total equity and liabilities	669.8	650.6