MEKO

Quarterly Report • Feb 14, 2024

Year-end report January - December 2023

February 14, 2024

Strong growth and further initiatives to increase profitability

October 1–December 31, 2023

• Net sales increased 12 percent to SEK 4,373 M (3,895). Organic growth was 10 percent.
• EBIT amounted to SEK 68 M (148) and the EBIT margin was 1.5 percent (3.7). EBIT was impacted by items affecting comparability of SEK -82 M (-22) during the quarter.
• Adjusted EBIT amounted to SEK 175 M (198) and the adjusted EBIT margin to 3.9 percent (5.0).
• Earnings per share, before and after dilution, amounted to SEK -0.07 (2.05).
• Cash flow from operating activities amounted to SEK 139 M (326).

January 1–December 31, 2023

• Net sales increased 19 percent to SEK 16,762 M (14,067). Organic growth was 8 percent.
• EBIT increased to SEK 872 M (759) and the EBIT margin amounted to 5.0 percent (5.3). EBIT was positively impacted by items affecting comparability of SEK 10 M (-70) during the period.
• Adjusted EBIT increased to SEK 963 M (945) and the adjusted EBIT margin amounted to 5.6 percent (6.6).
• Earnings per share, before and after dilution, amounted to SEK 7.50 (8.12).
• Cash flow from operating activities increased to SEK 1,252 M (1,048).
• MEKO presented adjusted financial targets and priorities in conjunction with its capital markets day on March 21, 2023.
• The Board of Directors proposes a dividend of SEK 3,70 (3.30) per share to be paid in two installments, SEK 1.85 in May and SEK 1.85 in November.

SUMMARY OF THE GROUP'S EARNINGS
TREND	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales	4 373	3 895	12	16 762	14 067	19
EBIT	68	148	-54	872	759	15
Adjusted EBIT	175	198	-12	963	945	2
Profit after financial items	20	95	-79	582	581	0
Profit after tax	6	120	-95	451	477	-5
Earnings per share, SEK	-0,07	2,05	-103	7,50	8,12	-8
EBIT margin, %	1,5	3,7		5,0	5,3
Adjusted EBIT margin, %	3,9	5,0		5,6	6,6

ADJUSTED EBIT
SEK M	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
	2023	2022	Change, %	2023	2022	Change, %
EBIT	68	148	-54	872	759	15
Transaction costs, acquisition of Koivunen	-	0		-	-26
Transaction tax, acquisition of Koivunen	-	-		-	-22
Sale of properties, Finland	0	-		67	-
Transaction costs, sale of properties, Finland	0	-		-7	-
Sale of property, Denmark	0	-		37	-
Project costs, ERP	-18	-		-28	-
Electricity subsidies, Sweden	-	-		5	-
Restructuring costs, Norway	-54	-22		-54	-22
Restructuring costs, Sweden	-10	-		-10	-
Items affecting comparability, total	-82	-22		10	-70
Other items 1)	-24	-28		-101	-116
Adjusted EBIT	175	198	-12	963	945	2

1) Other items include material acquisition-related items. Current acquisition-related items pertain to the amortization/depreciation of surplus values on acquired tangible and intangible assets relating to the acquisitions of FTZ, Inter-Team, Koivunen and MECA (MECA until the end of May 2022 when this amortization ended).

Strong growth and further initiatives to increase profitability

MEKO concludes 2023 with robust growth, strong performances in core markets and a clear improvement in its financial position. I am pleased that the Board has proposed to raise the dividend to SEK 3.70 per share. In parallel, we are continuing our focused efforts to strengthen profitability, including a new efficiency program in Sweden and one-time costs affecting the operating result in the fourth quarter.

As we look back on 2023, I can see that MEKO's business model remains solid. The need for car service and maintenance remains constant – regardless of economic climate and whether the vehicle runs on electricity, petrol or diesel. We have strengthened our position as the most complete partner for everyone that drives, maintains, or repairs vehicles in our markets in northern Europe.

We increased net sales, strengthened or defended our market share, entered into new strategic partnerships with electric vehicle manufacturers, and invested in a high-technology warehouse to meet future needs. In addition, we launched an initiative to improve profitability – "Building a stronger MEKO".

Sustained positive growth trend

Strong growth continued during the fourth quarter. Net sales increased by 12 percent in total and 10 percent organically. Market conditions differ between countries, with a more favorable situation in Norway, Denmark and Sweden than, for example, in Poland and Finland, which face a number of challenges. We can also note that there were fewer workdays than during the corresponding period in 2022.

Continued efficiency improvements to increase profitability

Our initiative to increase profitability will gradually improve EBIT in 2024 and 2025 with full effect during next year. This means we can expect an improved EBIT margin of at least one percentage point, which corresponds to an increase in EBIT of at least 15 percent.

This initiative will entail costs along the way. During the fourth quarter, we implemented some of these efficiency improvements in Norway, as announced in December. In addition, we took steps in Finland of a non-recurring nature, as a result of the warehouse merger, among other reasons, and to create a long-term improvement in gross margin with new leadership in parts of the business area. This non-recurring costs was charged to our EBIT and our EBIT margin.

We are now proceeding with a targeted efficiency program in Sweden, as part of our initiative "Building a stronger MEKO". The aim is to enhance the positive trend in the business during 2023. Through more optimized purchasing and reduced costs, expect to achieve a positive effect of SEK 50 M during 2024. This is taking place at the same time as we naturally continue to offer the industry's best availability for our customers.

Strong financial position enables raised dividend

It is gratifying that MEKO's financial position has improved in 2023. At the end of the year, the debt/equity ratio was 2.7 times, compared with 3.1 one year earlier and is thus well within the target range of 2–3 times. This creates flexibility and an opportunity to pay a dividend to our shareholders, in line with our financial targets. I am pleased to announce that the Board has proposed a raised dividend of SEK 3.70 per share (3.30), to be paid in two separate installments of SEK 1.85 in both May and November.

Overall, MEKO is well-positioned for the green transition and for continued profitable growth. Our initiatives are creating a stronger company with more energy to lead developments in our industry, where we benefit from new habits and more sustainable technology in our vehicles. I would like to extend a big and warm thank you to all employees, customers, business partners and shareholders for this past year.

Pehr Oscarson President and CEO

THIS IS MEKO

Vision

We enable mobility – today, tomorrow and in the future.

Business concept

We are an international Group that operates and develops business in the automotive aftermarket. We focus on growth, collaboration, synergies and driving sustainable and digital development in our industry. Our business concept is timeless and is based on enabling mobility – today, tomorrow and in the future – as technology evolves and vehicles are used in new ways.

We satisfy the need for services and products to vehicle workshops and other companies through our market-leading concepts, distribution network and our efficient logistics chain. Our concepts are directed at private and commercial vehicle owners, for whom we meet vehicle service and maintenance needs.

Business flow

MEKO has a central purchasing function supporting all five business areas: Denmark, Finland, Poland/the Baltics, Sweden/Norway and Sørensen og Balchen (Norway). The supply of goods is mainly from Europe and Asia via leading European suppliers. The business areas conduct wholesale and logistics operations as well as sales through our branch and workshop concepts in each market. Sales to companies account for the majority of the Group´s sales.

GROUP REVENUE

TOTAL REVENUE	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
DISTRIBUTION, SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales, external
per business area
Denmark	1 148	986	17	4 267	3 689	16
Finland1)	354	327	8	1 462	728	101
Poland/the Baltics	916	813	13	3 522	2 748	28
Sweden/Norway1)	1 727	1 559	11	6 579	6 020	9
Sørensen og Balchen (Norway)	225	209	7	923	877	5
Central functions	3	2	70	8	5	55
Total net sales, Group	4 373	3 895	12	16 762	14 067	19
Other operating revenue	144	112	29	516	324	59
GROUP REVENUE	4 517	4 007	13	17 278	14 391	20

Revenue distribution per country and business area is presented in the tables on pages 19–20.

1) Comparative figures have been restated based on the new business areas.

GROWTH NET SALES		Denmark		1) Finland		Poland/ 1) the Baltics		Sweden/ Norway		Sørensen og Balchen (Norway)		Group
PERCENT
2023	Q4	Full-year	Q4	Full-year	Q4	Full-year	Q4	Full-year	Q4	Full-year	Q4	Full-year
Organic growth	10,2	5,2	3,3	6,7	1,7	4,6	15,3	11,5	16,6	11,0	10,2	8,2
Effect from acquisitions/divestments	2,8	2,6	0,0	0,0	0,0	0,0	0,0	0,6	0,0	0,0	0,7	8,0
Currency effects	5,4	8,3	6,6	8,3	11,3	11,4	-2,7	-1,9	-7,4	-4,9	2,8	3,7
Effect, workdays	-1,8	-0,5	-1,7	-1,6	-0,3	-0,6	-1,8	-0,9	-1,7	-0,8	-1,5	-0,7
Growth net sales	16,5	15,7	8,2	13,4	12,7	15,4	10,8	9,3	7,5	5,2	12,3	19,2

1) In the fourth quarter, organic growth for the Finland and Poland/the Baltics business areas includes the acquired Koivunen's operations since these have been owned by MEKO for more than 12 months (the acquisition took place on July 1, 2022). For the "Full-year" period, these operations are included in "Effect from acquisitions/divestments" at central level for the January to June period, and in organic growth for the Finland and Poland/the Baltics business areas for the July to December period.

October 1–December 31, 2023

Net sales increased 12 percent to SEK 4,373 M (3,895). Net sales were positively impacted by currency effects of SEK 109 M. The number of workdays had a negative effect on net sales during the quarter, with one workday less in most of the countries compared with the year-earlier quarter. Organic growth was 10 percent, positively impacted by inflationary price increases.

January 1–December 31, 2023

Net sales increased 19 percent to SEK 16,762 M (14,067). Net sales were positively impacted by currency effects of SEK 523 M. The number of workdays had a negative effect on net sales during the period. Organic growth was 8 percent, positively impacted by inflationary price increases.

GROUP PERFORMANCE

October 1–December 31, 2023

EBIT

EBIT amounted to SEK 68 M (148) and the EBIT margin was 1.5 percent (3.7). EBIT was impacted by items affecting comparability of SEK -82 M (-22) during the quarter attributable to restructuring costs in Sweden and Norway totaling SEK -64 M and project costs for ERP of SEK -18 M.

During the quarter, currency effects in the balance sheet had an impact of SEK 26 M (22) on EBIT. Implemented price increases during the quarter failed to fully offset rising purchasing prices resulting from higher inflationary pressure and an unfavorable exchange rate against the euro, which had a negative impact on EBIT.

Adjusted EBIT

Adjusted EBIT amounted to SEK 175 M (198) and the adjusted EBIT margin was 3.9 percent (5.0). During the quarter, currency effects in the balance sheet had an impact of SEK 26 M (22) on adjusted EBIT. Price increases implemented during the quarter failed to fully offset rising purchasing prices resulting from higher inflationary pressure and an unfavorable exchange rate against the euro, which had a negative impact on adjusted EBIT.

Other earnings

Profit after financial items amounted to SEK 20 M (95). Net interest expense was SEK -50 M (-48) and other financial items amounted to SEK 1 M (-5). Profit after tax amounted to SEK 6 M (120). Earnings per share, before and after dilution, amounted to SEK -0.07 (2.05).

January 1–December 31, 2023

EBIT

EBIT increased to SEK 872 M (759) and the EBIT margin was 5.0 percent (5.3). EBIT was positively impacted by items affecting comparability of SEK 10 M (-70) net, mainly attributable to the sale of properties in Finland and Denmark for a total SEK 97 M, restructuring costs in Sweden and Norway totaling SEK -64 M, and project costs for ERP of SEK -28 M. Currency effects in the balance sheet had an impact of SEK 3 M (-16) on EBIT. Implemented price increases failed to fully offset rising purchasing prices resulting from higher inflationary pressure and a strengthened euro, which had a negative impact on EBIT.

Adjusted EBIT

Adjusted EBIT increased to SEK 963 M (945) and the adjusted EBIT margin was 5.6 percent (6.6). Currency effects in the balance sheet had an impact of SEK 3 M (-16) on adjusted EBIT.

Other earnings

Profit after financial items increased to SEK 582 M (581). Net interest expense was SEK -248 M (-135) and other financial items amounted to SEK -41 M (-43). Profit after tax amounted to SEK 451 M (477). Earnings per share, before and after dilution, amounted to SEK 7.50 (8.12).

FINANCIAL POSITION AND CASH FLOW

Cash flow from operating activities in the fourth quarter amounted to SEK 139 M (326) and increased to SEK 1,252 M (1,048) for the full-year. Taxes paid amounted to SEK -72 M (-5) for the fourth quarter and SEK 168 M (240) for the full year. SEK 704 M was repaid of the Group's interest-bearing liabilities during the year. The Group's cash and cash equivalents amounted to SEK 623 M (741). The equity/assets ratio was 39 percent (38).

Long-term interest-bearing liabilities amounted to SEK 5,018 M (5,392) including a long-term lease liability of SEK 1,379 M (1,020). Current interest-bearing liabilities amounted to SEK 584 M (520), including a current lease liability of SEK 583 M (520). Net debt decreased to SEK 2,980 M (3,558), representing a decline of SEK 578 M compared with the year end. At the end of the period, the debt/equity ratio including IFRS 16 amounted to 2.7 compared with 3.1 on December 31, 2022.

MEKO's available cash and unutilized credit facilities totaled SEK 1,843 M on December 31, with SEK 1,261 M at the previous year-end.

INVESTMENTS

During the fourth quarter, investments in fixed assets amounted to SEK 178 M (202) including leases of SEK 109 M (130) and during the full year investments were SEK 1,266 M (540), including leases of SEK 1,035 M (332). Most of the increase pertaining to leases during the year related to rental contracts for properties in Finland and Denmark subject to sale and leaseback transactions recognized under IFRS 16 for properties divested.

Other investments mainly relate to workshop profiling, workshop customization, workshop equipment, inventories to branches, warehouses and workshops and IT investments. Depreciation and impairment of tangible fixed assets and right-of-use assets amounted to SEK 243 M (193) for the fourth quarter and to SEK 797 M (675) for the full year.

Company and business combinations amounted to SEK – M (5) during the fourth quarter and to SEK 37 M (1,481) for the full year, of which SEK – M (1) pertained to an estimated supplementary purchase price consideration for the fourth quarter and SEK – M (1) for the full year. Acquired assets totaled SEK 75 M (1,441) and assumed liabilities SEK 28 M (531) for the full year. In addition to goodwill, which amounted to SEK 15 M (206), surplus values on fixed assets were identified relating to customer relations of SEK 19 M (65), brands of SEK – M (118) and buildings and land of SEK – M (271) for the full year. Deferred tax liabilities attributable to acquired surplus values amounted to SEK 4 M (90). Acquired non-controlling interests amounted to SEK – M (19) for the fourth quarter and SEK 15 M (25) for the full year. Divested non-controlling interests amounted to SEK – M (–) for the fourth quarter and SEK 1 M (0) for the full year. Divested businesses amounted to SEK – M (–) in the fourth quarter and SEK 52 M (17) for the full year.

ACQUISITIONS AND START-UPS

Fourth quarter

No significant acquisitions took place during the quarter.

Earlier in the year

The Denmark business area acquired 70 percent of the leading car accessories company Avant Denmark. Avant Denmark offers the largest range of car accessories to companies and consumers in Denmark. Sales channels include online sales via biludstyr.dk and via retailers across Denmark.

NUMBER OF BRANCHES AND WORKSHOPS

At the end of the period, the total number of branches in the chains was 674 (673), of which 426 (438) were proprietary branches. The number of affiliated workshops totaled 4,446 (4,360). See the distribution in the table on page 22.

EMPLOYEES

During the period, the average number of employees was 6,268 (6,112). See the distribution in the table on page 22.

PERFORMANCE BY BUSINESS AREA

As of the third quarter of 2022, the Group reports in five business areas: Denmark, Finland, Poland/the Baltics, Sweden/Norway and Sørensen og Balchen (Norway). Comparative figures have been restated.

BUSINESS AREA DENMARK

DENMARK	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales, external	1 148	986	17	4 267	3 689	16
EBIT	56	41	37	302	265	14
EBIT margin, %	4,9	4,1		7,0	7,2
No. of branches/of which proprietary				48 / 48	50 / 50
No. of AutoMester				391	400
No. of Hella Service Partner				276	283
No. of Din BilPartner				159	153
No. of CarPeople				75	72
No. of White Label				102	115

The business area mainly includes wholesale and branch operations in Denmark.

In the fourth quarter, net sales increased 17 percent to SEK 1,148 M (986), positively impacted by currency effects of SEK 53 M. Organic growth was 10 percent, driven by both price adjustments and increased volumes. Market trends benefited from a cold winter season, but remained marked by intense competition and by generally weaker consumer purchasing power.

EBIT increased to SEK 56 M (41) and the EBIT margin was 4.9 percent (4.1) for the quarter. Cost savings and price adjustments combined with a strong gross margin had a positive impact on the earnings trend. The improved gross margin was mainly attributable to a more normalized sales mix compared with the corresponding year-earlier quarter, which was characterized by a high number of campaigns to strengthen demand.

In the fourth quarter, there was one fewer workday in Denmark compared with the year-earlier quarter.

BUSINESS AREA FINLAND

FINLAND	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales, external	354	327	8	1 462	728	101
EBIT	-40	13	-410	57	22	161
EBIT margin, %	-11,3	3,9		3,7	2,9
No. of branches/of which proprietary				172 / 14	170 / 15
No. of Mekonomen Bilverkstad				116	97
No. of Fixus				192	200
No. of MECA Tungbil				35	38

The business area mainly includes wholesale and branch operations in Finland.

Net sales increased to SEK 354 M (327) in the fourth quarter. Currency effects had a positive impact on net sales of SEK 22 M. Organic growth was 3 percent. The trend in the Finnish market remains generally challenging but with a healthy demand for workshop services and spare parts.

EBIT amounted to SEK -40 M (13) during the quarter and the EBIT margin was -11.3 percent (3.9). In the quarter, EBIT was negatively impacted by non-recurring costs and impairment related to the recent merger of Koivunen's and Mekonomen's warehouse. Integration work and synergy gains are progressing as planned, but had a temporary impact on costs for the fourth quarter. The gross margin decreased in the quarter, mainly due to a change in the product mix with a higher proportion of seasonal products with lower margins.

In the fourth quarter, there was one fewer workday in Finland compared with the year-earlier quarter.

BUSINESS AREA POLAND/THE BALTICS

POLAND/THE BALTICS	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales, external	916	813	13	3 522	2 748	28
EBIT	50	57	-13	158	164	-4
EBIT margin, %	5,2	6,8		4,3	5,8
No. of branches/of which proprietary				135 / 113	131 / 109
No. of Fixus				34	33
No. of Inter Data Service				757	644
No. of O.K. Serwis				315	287

The Poland/the Baltics business area mainly includes wholesale and branch operations in Estonia, Latvia, Lithuania and Poland as well as export business.

Net sales increased 13 percent to SEK 916 M (813) in the fourth quarter. Currency effects had a positive impact on net sales of SEK 92 M. Organic growth was 2 percent, mainly driven by a continued strong trend in export sales. Demand in Poland and the Baltics slowed slightly due to a weaker economy and high inflationary pressure. Export sales were strongest to Germany, Slovakia and Austria during the quarter.

EBIT amounted to SEK 50 M (57) in the quarter and the EBIT margin was 5.2 percent (6.8). The lower earnings were attributable to a lower gross margin, combined with higher costs driven by high inflation and a strained labor market with increased wage demands. The gross margin decreased as price adjustments could not offset higher purchase prices as well as higher proportion of export sales with lower margins, compared with the year-earlier quarter.

In the fourth quarter, there was one fewer workday in Estonia and Lithuania compared with the year-earlier quarter. In Latvia and Poland, the number of workdays was unchanged compared with the year-earlier quarter.

BUSINESS AREA SWEDEN/NORWAY

SWEDEN/NORWAY	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales, external	1 727	1 559	11	6 579	6 020	9
EBIT	19	50	-62	393	383	3
EBIT margin, %	1,1	3,1		5,8	6,2
No. of branches/of which proprietary				244 / 211	256 / 224
No. of Mekonomen Bilverkstad				660	681
No. of MECA Car Service				705	726
No. of MekoPartner				184	187
No. of Speedy				48	47
No. of MECA Tungbil				42	37
No. of AlltiBil				4	5
No. of White Label				81	93

The Sweden/Norway business area mainly includes wholesale, branch, workshop and fleet operations primarily through the MECA and Mekonomen concepts.

Net sales for the fourth quarter increased 11 percent to SEK 1,727 M (1,559), of which SEK 1,103 M (982) in the Swedish operations and SEK 624 M (576) in the Norwegian operations. Currency effects had a negative impact on net sales of SEK 42 M. Organic growth was 15 percent. The sales trend was strong both in Sweden and Norway during the quarter, driven by both price adjustments and new customers, and thereby increased volumes.

EBIT amounted to SEK 19 M (50) and the EBIT margin was 1.1 percent (3.1) in the fourth quarter.

EBIT was negatively impacted in the quarter by items affecting comparability of SEK -64 M (-22) relating to efficiency improvements and optimization of the branch network in Norway as well as measures to improve profitability in Sweden. The business area has a positive underlying profit trend despite a lower gross margin in combination with noticeable cost inflation compared to the corresponding quarter last year.

In the fourth quarter, there was one fewer workday in Norway and Sweden compared with the year-earlier quarter.

BUSINESS AREA SØRENSEN OG BALCHEN (NORWAY)

SØRENSEN OG BALCHEN (NORWAY)	Oct-Dec	Oct-Dec		Jan-Dec	Jan-Dec
SEK M	2023	2022	Change, %	2023	2022	Change, %
Net sales, external	225	209	7	923	877	5
EBIT	42	34	24	158	160	-1
EBIT margin, %	18,1	15,9		16,8	18,0
No. of branches/of which proprietary				75 / 40	66 / 40
No. of BilXtra				270	262

The Sørensen og Balchen (Norway) business area mainly includes wholesale and branch operations in Norway. Sørensen og Balchen (Norway) is the business area in the Group with the largest share of direct sales to consumers and is therefore more exposed to the retail trade than the Group as a whole.

Net sales in the fourth quarter amounted to SEK 225 M (209) Currency effects had an adverse impact on net sales of SEK 15 M. Organic growth was 17 percent. The trend was driven by good volume growth in sales to business customers combined with price adjustments, but was adversely impacted by a continued weak trend in the retail trade. The operations have been affected to a higher degree than other segments by the generally weak retail trade market.

EBIT amounted to SEK 42 M (34) and the EBIT margin was 18.1 percent (15.9) for the quarter.

The change in earnings was largely attributable to higher sales and a stronger gross margin, which were offset by notable cost inflation compared with the year-earlier quarter. The gross margin improved as price adjustments more than offset negative currency fluctuations and a changed customer mix with a higher share of sales to business customers.

In the fourth quarter, there was one fewer workday in Norway compared with the year-earlier quarter.

NUMBER OF WORKDAYS PER QUARTER AND COUNTRY

MEKO has no distinct seasonal effects in its operations. However, the number of workdays affects sales and earnings and extreme summer or winter weather can also impact profitability.

NUMBER OF WORKDAYS	Q1		Q2		Q3		Q4		FY
BY COUNTRY	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Denmark	65	64	59	59	65	66	63	64	252	253
Estonia	64	63	62	62	65	66	63	64	254	255
Finland	64	63	60	61	65	66	62	63	251	253
Latvia	65	64	59	60	65	66	63	63	252	253
Lithuania	64	62	63	63	63	64	61	62	251	251
Norway	65	64	58	59	65	66	63	64	251	253
Poland	64	63	61	62	64	65	62	62	251	252
Sweden	64	63	59	60	65	66	63	64	251	253

SIGNIFICANT RISKS AND UNCERTAINTIES

MEKO is exposed to a number of external, operating and financial risks. All identified risks are monitored continuously and, if necessary, risk-reducing measures are taken to limit the effects. The most relevant risk factors are described in the the 2022 Annual Report, page 30 and Note 11. For the effect of exchange-rate fluctuations on profit before tax, refer to page 44 of the 2022 Annual Report and for financial risks see Note 36. Our assessment is that no new significant risk areas have been added.

MEKO has, through its Risk and Compliance Committee, which consists of Group Management and the Group's risk manager, a particular focus on identifying critical changes in the area of risk. The risk manager and CFO maintain frequent dialogues with business area managers to limit the risks and prevent these from occurring. This process is conducted with various stakeholders, the Board and the Audit Committee.

PARENT COMPANY

The Parent Company's operations mainly comprise Group Management. The Parent Company's earnings after net financial items were SEK -24 M (-31) for the fourth quarter and SEK -105 M (-510) for the full year excluding dividends from subsidiaries of SEK – M (–) in the fourth quarter and SEK 484 M (566) for the full year. The large difference compared with the year-earlier period is mainly due to impairment of participations in the previous operations in Finland. The average number of employees in the Parent Company was 6 (6). During the fourth quarter, MEKO AB sold goods and services to Group companies for SEK 10 M (4) and for SEK 44 M (39) in the full year.

CENTRAL FUNCTIONS AND OTHER ITEMS

Central functions comprise Group-wide functions that also include MEKO AB. Group-wide functions comprise functions that support the Group's work: finance and controlling, risk management and internal audit, sustainability, legal, business development, communication and market, personnel and operations, which comprises purchasing, product range, logistics and IT. The units reported in Central functions do not reach the quantitative thresholds for separate reporting and the benefits of reporting these segments separately are considered limited for users of financial statements.

EBIT for Central functions amounted to SEK -34 M (-19) for the fourth quarter and SEK -95 M (-119) for the full year. The change in EBIT compared with the year-earlier period is attributable to additional project costs for ERP and for the full year to costs in the previous year attributable to the acquisition of Koivunen.

Other items includes acquisition-related items attributable to MEKO AB's direct acquisitions. Current acquisition-related items comprise amortization and depreciation of acquired intangible and tangible assets pertaining to the acquisitions of FTZ, Inter-Team, Koivunen, and MECA (MECA up to and including May 2022 when this amortization ended) amounting to SEK -24 M (-28) for the fourth quarter and SEK -101 M (-116) for the full year.

EVENTS DURING THE PERIOD

On October 5, it was announced that Anders Oxelström has been appointed as new Director of Communications of MEKO and will assume his position on December 18, 2023.

Anders Lindén took over as interim CFO on October 13.

On November 9, MEKO announced an investment in a new fully automated central warehouse that will consolidate the company's inventory management in Norway. The warehouse is anticipated to be fully operational by the end of 2025. The establishment of the central warehouse is not expected to significantly impact MEKO's cash flow or results.

On November 15, it was announced that Christer Johansson has been appointed as Chief Financial Officer of MEKO and will assume his new role on February 19, 2024.

On November 16, MEKO announced that the company is initiating a new partnership with the electric car manufacturer ZEEKR, which launched its brand in Sweden at the end of 2023.

On November 22, MEKO announced that the company had entered into an agreement in principle to initiate a partnership with the electric car manufacturer HiPhi. MEKO will offer authorized aftermarket services to HiPhi owners in northern Europe, starting with Norway as the first market in the fourth quarter 2023.

On December 7, MEKO announced that it is optimizing operations in Norway to increase efficiency, strengthen service, and reduce emissions from transportations. The efforts are estimated to yield annual net savings of at least SEK 66 M with full effect by 2025, which contributes to permanently improving MEKO's profitability. Efficiency measures are also being adopted in Sweden.

EVENTS AFTER THE END OF THE PERIOD

MEKO has been awarded a bronze medal by EcoVadis, the world's most trusted provider of business sustainability ratings, for its sustainability performance and achievements. Scoring well-above industry averages across all categories, MEKO is in the top 35 percent of assessed companies.

ACCOUNTING POLICIES

MEKO applies the International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report was prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting. The same accounting policies and measurement methods were applied as in the most recent Annual Report. This interim report consists of pages 1–28 and should be read in its entirety.

The Parent Company prepares its accounts in accordance with the Swedish Annual Accounts Act and RFR 2 and applies the same accounting policies and measurement methods as in the most recent Annual Report.

Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line should correspond to its source, and rounding differences may therefore arise.

FORTHCOMING FINANCIAL REPORTING DATES

Information	Period	Date
Interim report	January–March 2024	2024-05-16
Interim report	January–June 2024	2024-08-22
Interim report	January–September 2024	2024-11-07
Year-end report	January–December 2024	2025-02-13

ANNUAL GENERAL MEETING

The 2023 Annual General Meeting will be held on May 16, 2024 in Stockholm. The Annual Report will be published and available on MEKO's website at the latest on April 17, 2024.

SHARE DIVIDEND

The Board proposes a dividend of SEK 3.70 (3.30) per share, corresponding to a total dividend of SEK 207 M (186). Payment of the dividend is proposed to take place in two installments, SEK 1.85 in May and SEK 1.85 in November.

NOMINATION COMMITTEE

In accordance with the guidelines established at the AGM on May 23, 2023, MEKO has established a Nomination Committee. The Nomination Committee shall prepare and submit proposals to the AGM on May 16, 2024 pertaining to the election of a Chairman of the AGM, the number of Board members and deputy members, the election of a Chairman of the Board and other members to the company's Board of Directors, Board fees, as well as any remuneration for committee work, election of and fees paid to auditors, and guidelines for how the Nomination Committee is to be appointed.

Prior to the 2024 AGM, the Nomination Committee consists of Nick Zarcone, appointed by LKQ Corporation, Magnus Sjöqvist, appointed by Swedbank Robur Fonder AB, Thomas Wuolikainen, appointed by the Fourth Swedish National Pension Fund, and Erik Nordström, appointed by Didner & Gerge Fonder AB. The Nomination Committee has appointed Nick Zarcone as Chairman of the Committee. MEKO's Board member, Helena Skåntorp, was co-opted to the Nomination Committee.

Stockholm, February 14, 2024 MEKO AB (publ), Corp. Reg. No. 556392-1971

Pehr Oscarson President and CEO

This report has not been subject to review by the company's auditors.

For further information, please contact: Pehr Oscarson, President and CEO, MEKO AB, Tel +46 (0)8-464 00 20 Anders Lindén, Interim CFO MEKO AB, Tel +46 (0)8-464 00 20 Fredrik Sätterström, IRO, MEKO AB, Tel +46 (0)8-464 00 20

This information is such information that MEKO AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation.

This information was submitted for publication, through the agency of the contact person set out above, at 07:30 a.m. on February 14, 2024.

The interim report is published in Swedish and English. The Swedish version is the original version and has been translated into English.

CONSOLIDATED FINANCIAL REPORTS

CONDENSED CONSOLIDATED INCOME	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
STATEMENT, SEK M	2023	2022	2023	2022
Net sales	4 373	3 895	16 762	14 067
Other operating revenue	144	112	516	324
Total revenue	4 517	4 007	17 278	14 391
Goods for resale	-2 537	-2 230	-9 500	-7 745
Other external costs	-665	-552	-2 340	-1 972
Personnel expenses	-956	-839	-3 578	-3 043
Operating profit before depreciation/
amortization and impairment of tangible
and intangible fixed assets and
right-of-use assets (EBITDA)	359	386	1 859	1 631
Depreciation and impairment of tangible
fixed assets and
right-of-use assets	-243	-193	-797	-675
Operating profit before amortization and
impairment of intangible fixed
assets (EBITA)	116	193	1 062	956
Amortization and impairment of intangible
assets	-48	-45	-190	-197
EBIT	68	148	872	759
Interest income	17	7	38	17
Interest expenses	-66	-55	-286	-152
Other financial items	1	-5	-41	-43
Profit after financial items	20	95	582	581
Tax	-14	24	-132	-104
PROFIT FOR THE PERIOD	6	120	451	477
Profit for the period attributable to:
Parent Company's shareholders	-4	114	419	454
Non-controlling interests	10	5	31	23
PROFIT FOR THE PERIOD	6	120	451	477
Earnings per share before and after dilution,
SEK	-0,07	2,05	7,50	8,12

CONSOLIDATED STATEMENT OF	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
COMPREHENSIVE INCOME, SEK M	2023	2022	2023	2022
Profit for the period	6	120	451	477
Other comprehensive income:
Components that will not be
reclassified to profit/loss for the year:
– Actuarial gains and losses	-1	-1	-1	2
Components that may later be
reclassified to profit/loss for the year:
– Exchange-rate differences from translation of
foreign subsidiaries	-200	156	-26	441
– Hedging of net investments1)	12	-12	27	-81
– Cash-flow hedges2)	-27	0	-25	22
Other comprehensive income, net after tax	-216	142	-25	385
COMPREHENSIVE INCOME FOR THE PERIOD	-210	262	426	861
Comprehensive income for the period attributable to:
Parent Company's shareholders	-215	254	396	833
Non-controlling interests	5	8	29	28
COMPREHENSIVE INCOME FOR THE PERIOD	-210	262	426	861

1) Net investment in NOK is hedged using a cross-currency swap. Loans in euro that hedged net investments in DKK were terminated in the third quarter of 2022.

2) Holding of financial interest-rate derivatives for hedging purposes, according to Level 2 measurements defined in IFRS 13.

CONDENSED CONSOLIDATED BALANCE SHEET	December 31	December 31	December 31
SEK M	2023	2022	2021
ASSETS1)
Intangible assets	5 803	5 933	5 394
Tangible fixed assets	748	1 076	436
Right-of-use assets	1 869	1 526	1 651
Financial and other fixed assets	159	136	94
Deferred tax assets	0	19	3
Goods for resale	4 459	4 147	3 021
Current receivables	2 378	2 195	1 738
Cash and cash equivalents	623	741	892
TOTAL ASSETS	16 040	15 773	13 229
SHAREHOLDERS' EQUITY AND LIABILITIES1)
Shareholders' equity	6 175	5 926	5 229
Long-term liabilities, interest-bearing	3 639	4 372	2 996
Long-term lease liabilities	1 379	1 020	1 181
Deferred tax liabilities	426	501	357
Long-term liabilities, non-interest-bearing	24	20	45
Current liabilities, interest-bearing	1	-	198
Current lease liabilities	583	520	467
Current liabilities, non-interest-bearing	3 813	3 416	2 757
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	16 040	15 773	13 229

1) The carrying amounts of financial assets and liabilities are measured at either fair value or an estimation of fair value.

CONDENSED CONSOLIDATED CHANGES IN	December 31	December 31	December 31
SHAREHOLDERS' EQUITY, SEK M	2023	2022	2021
Shareholders' equity at the beginning of the year	5 926	5 229	4 595
Comprehensive income for the period	426	861	687
Share swap	18	-23	-20
Acquisition/divestment of non-controlling interests	-7	48	-20
Dividend to shareholders	-201	-184	-19
Long-term share based incentive program	14	-6	7
SHAREHOLDERS' EQUITY AT THE END OF THE PERIOD	6 175	5 926	5 229
Of which non-controlling interests	137	125	55

CONDENSED CONSOLIDATED CASH	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
FLOW, SEK M	2023	2022	2023	2022
Operating activities
Cash flow from operating activities
before changes in working capital, excluding
taxes paid	303	360	1 539	1 484
Taxes paid	72	5	-168	-240
Cash flow from operating activities
before changes in working capital	375	365	1 372	1 244
Cash flow from changes in working capital:
Changes in inventory	-252	-60	-296	-251
Changes in receivables	250	185	-219	-186
Changes in liabilities	-234	-163	396	241
Increase (-)/ Decrease (+) working capital	-237	-39	-120	-196
Cash-flow from operating
activities	139	326	1 252	1 048
Cash flow from investing
activities	-42	-65	213	-1 533
Cash flow from financing
activities	-393	-174	-1 595	286
CASH FLOW FOR THE PERIOD	-296	88	-130	-199
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	947	639	741	892
Exchange-rate differences in cash and cash equivalents	-28	14	12	49
CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD	623	741	623	741

INFORMATION ABOUT FINANCIAL INSTRUMENTS RECOGNIZED AT FAIR VALUE IN THE BALANCE SHEET

How financial instruments are measured at fair value in the balance sheet is shown below. This was carried out by dividing the measurements into three levels, which

are described in the 2022 Annual Report, Note 11. All of MEKO's financial instruments measured at fair value are included in Level 2, excluding supplementary purchase considerations, which are included in Level 3. Current supplementary purchase considerations do not represent material amounts.

The main methods and assumptions used to determine the fair value of the financial instruments shown in the table below are described in the 2022 Annual Report, Note 11. The financial instruments contained in the interim report are the same as those in the 2022 annual accounts.

CONSOLIDATED DERIVATIVE INSTRUMENTS
MEASURED AT FAIR VALUE IN	December 31	December 31
THE BALANCE SHEET, SEK M	2023	2022
FINANCIAL ASSETS
Derivatives: Cross-currency swaps	9	-
Interest-rate swaps	4	27
Currency hedge	0	6
TOTAL	13	33
FINANCIAL LIABILITIES
Derivatives: Cross-currency swaps	-	29
Currency hedge	11
Interest-rate swaps	13	-
TOTAL	24	29

GROUP'S FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY, DECEMBER 31, 20231)

	Instruments measured at fair value through	Financial assets accrued	Financial liabilities accrued			Non-monetary	Total Balance sheet
SEK M	Income Statement	acquisition value	acquisition value	Total carrying amo	Fair value	assets & liabilities	summary
FINANCIAL ASSETS
Financial assets	-	106	-	106	106	40	146
Long-term derivative instruments5)	13	-	-	13	13	-	13
Accounts receivable	-	1 329	-	1 329	1 329	-	1 329
Other current receivables	-	10	-	10	10	1 039	1 048
Cash and cash equivalents	-	623	-	623	623	-	623
TOTAL	13	2 069	-	2 081		1 078	3 159
FINANCIAL LIABILITIES
Bond loans	-	-	1 245	1 245	1 261	-	1 245
Long-term liabilities, interest-bearing2)3)	-	-	2 381	2 381	2 381	-	2 381
Long-term lease liabilities4)	-	-	1 379	1 379	-	-	1 379
Long-term liabilities, non-interest-bearing	-	-	1	1	1	448	450
Derivative instruments2)	24	-	-	24	24	-	24
Contingent considerations, long-term	3	-	-	3	3		3
Current liabilities, interest-bearing6)	1	-	-	1	1	-	1
Current lease liabilities4)	-	-	583	583	-	-	583
Accounts payable	-	-	2 427	2 427	2 427	-	2 427
Other current liabilities	-	-	-	-	-	1 375	1 375
Contingent considerations, short-term	2	-	-	2	2	-	2
TOTAL	30	-	8 016	8 046		1 823	9 869

1) The carrying amount of the Group's non-market-listed long-term financial instruments measured at amortized cost corresponds

in all material respects to fair value, since the interest rate is on par with prevailing market rates. For the market-listed bond, fair value differs from

the carrying amount since the market value of the bond has changed since it was issued. The carrying amount of the Group's short-term

financial instruments measured at amortized cost corresponds in all material respects to fair value since the discount effect is not material.

2) The amount includes a liability related to share swaps of SEK 23 M.

3) The carrying amount of the Group's long-term liabilities measured at amortized cost corresponds in all material respects to fair value since the interest rate is on par with prevailing market rates.

4) Lease liabilities are recognized at amortized cost and are not assigned a fair value.

5) Derivative instruments used for hedging purposes.

6) The carrying amount of the Group's current liabilities measured at amortized cost corresponds in all material respects to fair value since the discount effect is not material.

QUARTERLY FIGURES,	2023					2022
BUSINESS AREA	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
NET SALES, SEK M1)
Denmark	4 267	1 148	986	1 087	1 046	3 689	986	851	919	933
Finland	1 462	354	386	387	335	728	327	336	32	33
Poland/the Baltics	3 522	916	921	901	784	2 748	813	786	615	533
Sweden/Norway2)	6 579	1 727	1 589	1 670	1 593	6 020	1 559	1 467	1 553	1 441
Sørensen og Balchen (Norway)	923	225	240	246	213	877	209	216	237	215
Central functions3)	8	3	2	2	2	5	2	3	0	0
GROUP	16 762	4 373	4 124	4 292	3 973	14 067	3 895	3 660	3 357	3 155
EBIT, SEK M
Denmark	302	56	91	72	83	265	41	58	73	93
Finland	57	-40	3	71	23	22	13	21	-7	-6
Poland/the Baltics	158	50	35	47	26	164	57	52	38	17
Sweden/Norway2)	393	19	174	118	82	383	50	130	102	101
Sørensen og Balchen (Norway)	158	42	42	47	27	160	34	39	50	37
Central functions3)	-95	-34	-20	-26	-15	-119	-19	-41	-42	-17
Other items4)	-101	-24	-25	-25	-27	-116	-28	-24	-30	-35
GROUP	872	68	300	304	200	759	148	235	185	190
EBIT MARGIN, %
Denmark	7,0	4,9	8,8	6,6	8,0	7,2	4,1	6,8	7,9	10,0
Finland	3,7	-11,3	0,9	15,5	6,7	2,9	3,9	6,2	-21,3	-16,8
Poland/the Baltics	4,3	5,2	3,7	5,1	3,2	5,8	6,8	6,4	6,0	3,0
Sweden/Norway2)	5,8	1,1	10,6	6,9	5,1	6,2	3,1	8,6	6,5	6,8
Sørensen og Balchen (Norway)	16,8	18,1	17,4	18,6	12,6	18,0	15,9	17,9	20,9	17,0
GROUP	5,0	1,5	7,1	6,8	4,9	5,3	3,7	6,3	5,4	5,9
INVESTMENTS, SEK M5)
Denmark	28	8	8	7	6	45	10	15	12	8
Finland	30	10	8	8	4	14	9	4	1	0
Poland/the Baltics	46	9	22	6	8	35	15	9	6	5
Sweden/Norway2)	111	36	12	28	35	98	30	19	32	16
Sørensen og Balchen (Norway)	5	1	0	2	2	4	2	0	0	2
Central functions3)	11	4	1	2	3	13	6	3	2	2
GROUP	231	68	52	53	58	208	71	50	53	34

1) Net sales for each business area pertains to external customers.

2) From the third quarter of 2022, Mekonomen Finland is recognized in the Finland business area rather than the previous Sweden/Norway business area. Comparative figures have been restated.

3) Central functions includes Group-wide functions that also include MEKO AB.

4) "Other items" includes acquisition-related items attributable to MEKO AB's direct acquisitions. Current acquisition-related items pertain to amortization/

depreciation of acquired intangible and tangible assets relating to the acquisitions of FTZ, Inter-Team, Koivunen and MECA (MECA until the end of May 2022).

5) Investments do not include company and business combinations and exclude leases according to IFRS 16.

REVENUE DISTRIBUTION PER COUNTRY	Oct-Dec
SEK M	2023
Revenue distribution per country	Denmark	Finland	Estonia	Latvia	Lithuania	Poland	Norway	Sweden	Total
Denmark	1 148								1 148
Finland		354							354
Poland/the Baltics			122	39	24	730			916
Sweden/Norway							624	1 103	1 727
Sørensen og Balchen (Norway)							225		225
Central functions									3
Total net sales, Group									4 373
Other revenue									144
GROUP REVENUE									4 517

Distribution of revenue per country based on the country that generates revenue for each segment.

REVENUE DISTRIBUTION PER COUNTRY	Oct-Dec
SEK M	2022
Revenue distribution per country	Denmark	Finland	Estonia	Latvia	Lithuania	Poland	Norway	Sweden	Total
Denmark	986								986
Finland		327							327
Poland/the Baltics			119	30	18	645			813
Sweden/Norway							576	982	1 559
Sørensen og Balchen (Norway)							209		209
Central functions									2
Total net sales, Group									3 895
Other revenue									112
GROUP REVENUE									4 007

Distribution of revenue per country based on the country that generates revenue for each segment.

REVENUE DISTRIBUTION PER COUNTRY	Jan-Dec
SEK M	2023
Revenue distribution per country	Denmark	Finland	Estonia	Latvia	Lithuania	Poland	Norway	Sweden	Total
Denmark	4 267								4 267
Finland		1 462							1 462
Poland/the Baltics			467	155	91	2 809			3 522
Sweden/Norway							2 485	4 095	6 579
Sørensen og Balchen (Norway)							923		923
Central functions									8
Total net sales, Group									16 762
Other revenue									516
GROUP REVENUE									17 278

Distribution of revenue per country based on the country that generates revenue for each segment.

REVENUE DISTRIBUTION PER COUNTRY	Jan-Dec
SEK M	2022
Revenue distribution per country	Denmark	Finland	Estonia	Latvia	Lithuania	Poland	Norway	Sweden	Total
Denmark	3 689								3 689
Finland		728							728
Poland/the Baltics			231	60	36	2 421			2 748
Sweden/Norway							2 308	3 712	6 020
Sørensen og Balchen (Norway)							877		877
Central functions									5
Total net sales, Group									14 067
Other revenue									324
GROUP REVENUE									14 391

Distribution of revenue per country based on the country that generates revenue for each segment.

QUARTERLY FIGURES	2023					2022					2021
SEK M	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
Revenue	17 278	4 517	4 255	4 453	4 052	14 391	4 007	3 744	3 415	3 226	12 552	3 218	3 013	3 263	3 058
EBITDA	1 859	359	538	537	426	1 631	386	462	388	395	1 699	377	455	480	386
EBITDA excl. IFRS 16	1 160	126	370	385	279	1 059	227	311	258	263	1 197	248	330	354	264
EBIT	872	68	300	304	200	759	148	235	185	190	894	173	255	280	186
Adjusted EBIT	963	175	292	270	227	945	198	281	240	225	1 031	203	290	314	224
Net financial items	-289	-48	-76	-79	-86	-178	-53	-56	-42	-27	-134	-21	-30	-37	-46
Profit after financial items	582	20	225	224	114	581	95	179	143	163	759	151	225	243	140
Tax	-132	-14	-41	-47	-30	-104	24	-46	-41	-42	-172	-33	-53	-55	-32
Profit for the period	451	6	183	177	84	477	120	133	102	121	587	118	173	188	108
EBITDA margin, %	10,8	7,9	12,6	12,1	10,5	11,3	9,6	12,3	11,4	12,2	13,5	12,0	15,0	15,0	13,0
EBIT margin, %	5,0	1,5	7,1	6,8	4,9	5,3	3,7	6,3	5,4	5,9	7,1	5,4	8,5	8,6	6,1
Adjusted EBIT margin, %	5,6	3,9	6,9	6,1	5,6	6,6	5,0	7,5	7,0	7,0	8,2	6,3	9,6	9,6	7,3
Earnings per share before and after dilution, SEK	7,50	-0,07	3,11	3,03	1,43	8,12	2,05	2,23	1,73	2,11	10,21	2,09	3,02	3,24	1,85
Shareholders' equity per share, SEK	107,8	107,8	111,5	111,5	106,2	104,0	104,0	99,7	95,6	95,8	92,4	92,4	89,6	86,7	83,7
Cash flow per share, SEK	22,4	2,5	10,7	8,7	0,5	18,8	5,8	8,5	6,9	-2,5	21,9	3,4	8,0	7,2	3,2
Return on shareholders' equity, %1)	6,9	6,9	9,0	8,4	7,4	8,3	8,3	8,6	9,7	11,7	11,8	11,8	13,6	13,0	12,3
Share price at the end of the period	109,4	109,4	95,0	111,2	123,5	112,6	112,6	91,8	110,0	111,2	157,1	157,1	156,0	141,4	129,1

1) The key figures for return on shareholders' equity are calculated on a rolling 12-month basis for each quarter.

KEY FIGURES	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
	2023	2022	2023	2022
Return on shareholders' equity, %1)	-	-	6,9	8,3
Return on total capital, %1)	-	-	5,3	5,1
Return on capital employed, %1)	-	-	7,1	6,8
Equity/assets ratio, %	38,5	37,6	38,5	37,6
Net debt, SEK M	2 980	3 558	2 980	3 558
Net debt/EBITDA excl. IFRS 16, multiple1)	-	-	2,6	3,4
Net debt/EBITDA incl. IFRS 16, multiple1)	-	-	2,7	3,1
Gross margin, %	42,0	42,8	43,3	44,9
EBITDA margin, %	7,9	9,6	10,8	11,3
EBIT margin, %	1,5	3,7	5,0	5,3
Adjusted EBIT margin, %	3,9	5,0	5,6	6,6
Earnings per share before and after dilution, SEK	-0,07	2,05	7,50	8,12
Shareholders' equity per share, SEK	107,8	104,0	107,8	104,0
Cash flow per share, SEK	2,5	5,8	22,4	18,8
Number of outstanding shares at the end of the period2)	55 988 761	55 793 379	55 988 761	55 793 379
Average number of shares during the period	55 988 761	55 793 379	55 917 032	55 891 711

1) Key figures for return on shareholders' equity/total capital/capital employed and net debt/EBITDA are calculated on a rolling 12-month basis for the January–December period.

2) The total number of shares amounts to 56,416,622, of which 83,861 are own shares and 344,000 are secured through equity swap agreements at the end of the period.

NUMBER OF BRANCHES AND WORKSHOPS	Denmark Dec 31			Finland Dec 31		Poland/the Baltics Dec 31	Sweden/ Norway	Dec 31	Balchen (Norway) Dec 31	Sørensen og		Group Dec 31
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
Number of branches
Proprietary branches	48	50	14	15	113	109	211	224	40	40	426	438
Partner branches	-	-	158	155	22	22	33	32	35	26	248	235
Total	48	50	172	170	135	131	244	256	75	66	674	673
Number of workshops
AutoMester	391	400	-	-	-	-	-	-	-	-	391	400
Hella Service Partner	276	283	-	-	-	-	-	-	-	-	276	283
Din BilPartner	159	153	-	-	-	-	-	-	-	-	159	153
CarPeople	75	72	-	-	-	-	-	-	-	-	75	72
Inter Data Service	-	-	-	-	757	644	-	-	-	-	757	644
O.K. Serwis	-	-	-	-	315	287	-	-	-	-	315	287
Mekonomen Bilverkstad	-	-	116	97	-	-	660	681	-	-	776	778
MECA Car Service	-	-	-	-	-	-	705	726	-	-	705	726
MekoPartner	-	-	-	-	-	-	184	187	-	-	184	187
Speedy	-	-	-	-	-	-	48	47	-	-	48	47
MECA Tungbil	-	-	35	38	-	-	42	37	-	-	77	75
AlltiBil	-	-	-	-	-	-	4	5	-	-	4	5
BilXtra	-	-	-	-	-	-	-	-	270	262	270	262
Fixus	-	-	192	200	34	33	-	-	-	-	226	233
White Label	102	115	-	-	-	-	81	93	-	-	183	208
Total	1 003	1 023	343	335	1 106	964	1 724	1 776	270	262	4 446	4 360

AVERAGE NUMBER OF EMPLOYEES	Jan-Dec	Jan-Dec
	2023	2022
Denmark	1 136	1 144
Finland	479	463
Poland/the Baltics	1 862	1 793
Sweden/Norway1)	2 442	2 395
Sørensen og Balchen (Norway)	300	285
Central functions2)	48	33
Total	6 268	6 112

1) Comparative figures for the Sweden/Norway business area have been restated and now show contracted workingtime with previously, when the actual number of hours worked was used.

2) Central functions includes Group-wide functions that also include MEKO AB.

FINANCIAL REPORTS, PARENT COMPANY

CONDENSED INCOME STATEMENT FOR	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
THE PARENT COMPANY, SEK M	2023	2022	2023	2022
Operating revenue	14	11	62	66
Operating expenses	-30	-22	-104	-105
EBIT	-16	-12	-43	-39
Net financial items1)	-7	-19	421	96
Profit after financial items	-24	-31	378	56
Appropriations	72	127	37	170
Tax	-11	-30	12	0
PROFIT FOR THE PERIOD	37	67	428	226

1) Net financial items include dividends on participations in subsidiaries totaling SEK – M (–) for the fourth quarter and SEK 484 M (566) for the full year.

PARENT COMPANY STATEMENT OF	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
COMPREHENSIVE INCOME, SEK M	2023	2022	2023	2022
Profit for the period	37	67	428	226
COMPREHENSIVE INCOME FOR THE PERIOD	37	67	428	226

CONDENSED BALANCE SHEET FOR THE PARENT COMPANY,	December 31	December 31
SEK M	2023	2022
ASSETS
Fixed assets	10 637	10 319
Current receivables in Group companies	181	271
Other current receivables	32	34
Cash and cash equivalents	284	391
TOTAL ASSETS	11 135	11 015
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity	6 551	6 277
Untaxed reserves	166	197
Provisions	5	4
Long-term liabilities	3 981	4 370
Current liabilities in Group companies	371	114
Other current liabilities	60	53
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	11 135	11 015

SUMMARY OF CHANGES IN EQUITY FOR THE	December 31	December 31
THE PARENT COMPANY, SEK M	2023	2022
Shareholders' equity at the beginning of the year	6 277	6 248
Comprehensive income for the period	428	226
Dividends	-185	-168
Share swap	18	-23
Long-term share based incentive program	14	-6
SHAREHOLDERS' EQUITY AT THE END OF THE PERIOD	6 551	6 277

ALTERNATIVE PERFORMANCE MEASURES

MEKO applies the Guidelines on Alternative Performance Measures issued by ESMA*. An alternative performance measure is a financial measure of historical or future financial performance, financial position or cash flows that is not defined or specified in IFRS.

MEKO believes that these key figures provide valuable supplementary information to company management, investors and other stakeholders in evaluating the company's performance. These alternative performance measures are not always comparable with the key figures used by other companies since not all companies calculate these key figures in the same way. These should therefore be seen as a supplement to the key figures defined according to IFRS. For definitions of key figures, refer to page 27. For relevant reconciliations of the alternative performance measures that cannot be directly read in or derived from the financial statements, refer to the tables below. For historical reconciliations of alternative performance measures, refer also to supplements to the 2016–2021 Annual Reports on MEKO's website:https://www.meko.com/investors/financial-information/alternative-performance-measures/.

*The European Securities and Markets Authority.

RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES

RETURN ON SHAREHOLDERS' EQUITY	Jan-Dec	Jan-Dec
SEK M	2023	2022
Profit for the period (rolling 12-month basis)	451	477
– Less non-controlling interest share of profit for the period (rolling 12 months)	-31	-23
Profit for the period excluding non-controlling interest (rolling 12 months)	419	454
– Divided by SHAREHOLDERS' EQUITY ATTRIBUTABLE TO PARENT COMPANY'S
SHAREHOLDERS, average over the past five quarters1)	6 050	5 450
RETURN ON SHAREHOLDERS' EQUITY, %	6,9	8,3

1) SHAREHOLDERS' EQUITY ATTRIBUTABLE TO PARENT COMPANY'S SHAREHOLDERS	2023				2022				2021
SEK M	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Shareholders' equity	6 175	6 376	6 369	6 050	5 926	5 698	5 403	5 421	5 229	5 071	4 905	4 788
– Less non-controlling interest share of shareholde	-137	-130	-126	-127	-125	-135	-52	-60	-55	-57	-53	-75
SHAREHOLDERS' EQUITY ATTRIBUTABLE
TO PARENT COMPANY'S SHAREHOLDERS	6 038	6 245	6 243	5 923	5 801	5 564	5 351	5 361	5 174	5 014	4 852	4 713
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO
PARENT COMPANY'S SHAREHOLDERS,
average over the past five quarters	6 050	5 955	5 776	5 600	5 450	5 293	5 150	5 023	4 856	4 712	4 578	4 472

RETURN ON TOTAL CAPITAL	Jan-Dec	Jan-Dec
SEK M	2023	2022
Profit after financial items (rolling 12 months)	582	581
– Plus interest expenses (rolling 12 months)	286	152
Profit after financial items plus interest expenses (rolling 12 months)	868	733
– Divided by TOTAL ASSETS, average over the past five quarters2)	16 368	14 283
RETURN ON TOTAL CAPITAL, %	5,3	5,1

2) TOTAL ASSETS	2023				2022				2021
SEK M	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Total assets	16 040	16 728	17 156	16 144	15 773	15 660	13 448	13 304	13 229	13 219	12 787	12 854
TOTAL ASSETS,
average over the past five quarters	16 368	16 292	15 636	14 866	14 283	13 772	13 197	13 079	12 857	12 749	12 613	12 613

RETURN ON CAPITAL EMPLOYED	Jan-Dec	Jan-Dec
SEK M	2023	2022
Profit after financial items (rolling 12 months)	582	581
– Plus interest expenses (rolling 12 months)	286	152
Profit after financial items plus interest expenses (rolling 12 months)	868	733
– Divided by CAPITAL EMPLOYED, average over the past five quarters3)	12 164	10 761
RETURN ON CAPITAL EMPLOYED, %	7,1	6,8

3) CAPITAL EMPLOYED	2023				2022				2021
SEK M	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Total assets	16 040	16 728	17 156	16 144	15 773	15 660	13 448	13 304	13 229	13 219	12 787	12 854
– Less deferred tax liabilities	-426	-449	-496	-498	-501	-532	-349	-339	-357	-347	-347	-332
– Less long-term liabilities, non-interest-bearing	-24	-22	-31	-20	-20	-19	-23	-25	-45	-44	-15	-17
– Less current liabilities, non-interest-bearing	-3 813	-4 028	-3 783	-3 495	-3 416	-3 523	-2 980	-2 720	-2 757	-2 791	-2 551	-2 426
CAPITAL EMPLOYED	11 777	12 229	12 845	12 130	11 837	11 585	10 095	10 220	10 070	10 037	9 873	10 081
CAPITAL EMPLOYED,
average over the past five quarters	12 164	12 125	11 698	11 173	10 761	10 401	10 059	10 056	9 922	9 827	9 751	9 817

GROSS MARGIN	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK M	2023	2022	2023	2022
Net sales	4 373	3 895	16 762	14 067
– Less goods for resale	-2 537	-2 230	-9 500	-7 745
Total	1 836	1 665	7 261	6 322
– Divided by net sales	4 373	3 895	16 762	14 067
GROSS MARGIN, %	42,0	42,8	43,3	44,9

EARNINGS PER SHARE	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK M	2023	2022	2023	2022
Profit for the period	6	120	451	477
– Less non-controlling interests' share	-10	-5	-31	-23
Profit for the period attributable to Parent Company's shareholders	-4	114	419	454
– Divided by Average number of shares4)	55 988 761	55 793 379	55 917 032	55 891 711
EARNINGS PER SHARE, SEK	-0,07	2,05	7,50	8,12

SHAREHOLDERS' EQUITY PER SHARE	Jan-Dec	Jan-Dec
SEK M	2023	2022
Shareholders' equity	6 175	5 926
– Less non-controlling interest share of shareholders' equity	-137	-125
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO PARENT COMPANY'S SHAREHOLDERS	6 038	5 801
– Divided by number of shares at the end of the period4)	55 988 761	55 793 379
SHAREHOLDERS' EQUITY PER SHARE, SEK	107,8	104,0

CASH FLOW PER SHARE	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK M	2023	2022	2023	2022
Cash flow from operating activities	139	326	1 252	1 048
– Divided by Average number of shares4)	55 988 761	55 793 379	55 917 032	55 891 711
CASH FLOW PER SHARE, SEK	2,5	5,8	22,4	18,8

4) AVERAGE NUMBER OF SHARES	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
	2023	2022	2023	2022
Number of shares at the end of the period	55 988 761	55 793 379	55 988 761	55 793 379
– Multiplied by the number of days that the Number of shares at the end of the period
has remained unchanged during the period	92	92	231	180
Number of shares on another date during the period				55 997 379
– Multiplied by the number of days that the Number of shares on another date
has existed during the period				53
Number of shares on another date during the period			55 793 379	55 983 372
– Multiplied by the number of days that the Number of shares on another date
has existed during the period			134	132
– Total divided by the number of days during
the period	92	92	365	365
AVERAGE NUMBER OF SHARES	55 988 761	55 793 379	55 917 032	55 891 711

NET DEBT	December 31	December 31	December 31
SEK M	2023	2022	2021
Long-term liabilities, interest-bearing incl. lease liability	5 018	5 391	4 177
– Less interest-bearing long-term liabilities and provisions for
pensions, leases, derivatives and similar obligations	-1 415	-1 091	-1 219
Current liabilities, interest-bearing incl. lease liability	583	520	664
– Less interest-bearing current liabilities and provisions for
pensions, leases, derivatives and similar obligations	-583	-520	-467
– Less cash and cash equivalents	-623	-741	-892
NET DEBT	2 980	3 558	2 264

NET DEBT INCL. IFRS 16	December 31 December 31		December 31
SEK M	2023	2022	2021
NET DEBT	2 980	3 558	2 264
– Plus long-term lease liabilities according to IFRS 16	1 379	1 020	1 181
– Plus current lease liabilities according to IFRS 16	583	520	467
NET DEBT INCL. IFRS 16	4 941	5 097	3 911

EBITDA EXCL. IFRS 16	Oct-Dec	Oct-Dec	Jan-Dec	Jan-Dec
SEK M	2023	2022	2023	2022
EBITDA according to income statement	359	386	1 859	1 631
– less change relating to lease expenses in accordance with IFRS 16	-233	-159	-699	-572
EBITDA excluding IFRS 16	126	227	1 160	1 059

FINANCIAL DEFINITIONS
Return on shareholders' equity	Profit for the period, excluding non-controlling interests, as a percentage of average shareholders' equity attributable to Parent Company's shareholders. Average shareholders' equity attributable to Parent Company's shareholders is calculated as shareholders' equity attributable to Parent Company's shareholders at the end of the period plus the shareholders' equity for
	the four immediately preceding quarters attributable to Parent Company's shareholders at the end of the periods divided by five.
Return on capital capital	Profit after financial items plus interest expenses as a percentage of average capital employed. Average employed is calculated as capital employed at the end of the period plus the capital employed for the four immediately preceding quarters divided by five.
Return on total capital	Profit after financial items plus interest expenses as a percentage of average total assets. Average total assets is calculated as total assets at the end of the period plus the total assets for the four immediately preceding quarters at the end of the periods divided by five.
Gross margin	Net sales less costs for goods for resale, as a percentage of net sales.
Gross profit	Revenue less cost for goods for resale.
EBIT margin	Operating profit after depreciation/amortization (EBIT) as a percentage of total revenue.
EBITA	Operating profit after depreciation according to plan but before amortization and impairment of intangible assets.
EBITDA	Operating profit before depreciation/amortization and impairment of tangible and intangible fixed assets.
EBITDA excl. IFRS 16	Operating profit before depreciation/amortization and impairment of tangible and intangible fixed assets excl. effects of IFRS 16.
EBITDA margin	EBITDA as a percentage of total revenue.
Shareholders' equity per share	Shareholders' equity excluding non-controlling interests, in relation to the number of shares at the end of the period.
Adjusted EBIT	EBIT adjusted for items affecting comparability (see definition under company-specific terms and definitions) and material acquisition-related items. Current acquisition-related items pertain to the amortization of acquired intangible and tangible assets relating to the acquisitions of FTZ, Inter-Team, Koivunen, MECA and Sørensen og Balchen.
Adjusted EBIT margin	Adjusted EBIT as a percentage of total revenue.
Cash flow per share	Cash flow from operating activities in relation to the average number of shares. Average number of shares
	is calculated as the number of shares at the end of the period multiplied by the number of days that this number existed during the period, plus any other number of shares during the period multiplied by the number of days that this or these numbers
	existed during the period, divided by the number of days during the period.
Cash and cash equivalents	Cash and cash equivalents comprise cash funds held at financial institutions and current liquid investments with a term from the date of acquisition of less than three months, which are exposed to only an insignificant risk of fluctuations in value. Cash and cash equivalents are recognized at nominal amounts.
Net debt	Short-term and long-term interest-bearing liabilities for borrowing, i.e. excluding short and long-term lease liabilities, pensions, derivatives and similar obligations, less cash and cash equivalents.
Net debt incl. IFRS 16	Short-term and long-term interest-bearing liabilities for borrowing, and long-term and current lease liabilities according to IFRS 16, i.e., excluding pensions, derivatives and similar obligations, less cash and cash equivalents.
Organic sales	Net sales adjusted for the number of workdays, acquisitions/divestments and currency effects.
Organic growth	Change in net sales adjusted for the number of workdays, acquisitions/divestments and currency effects.
Earnings per share	Profit for the period excluding non-controlling interests, in relation to the average number of shares. Average number of shares
	is calculated as the number of shares at the end of the period multiplied by the number of days that this number existed during
	the period, plus any other number of shares during the period multiplied by the number of days that this or these numbers existed during the period, divided by the number of days during the period.
Debt/equity ratio	Net debt relative to EBITDA, presented as a multiple. Presented both including and excluding IFRS 16.
Equity/assets ratio	Shareholders' equity including non-controlling interests as a percentage of total assets.
Capital employed	Total assets less non-interest-bearing liabilities and provisions, including deferred tax liabilities.

COMPANY-SPECIFIC TERMS AND DEFINITIONS

Business area	Reportable segment.
Affiliated workshops B2B	Workshops that conduct business under the Group's brands/workshop concepts or are affiliated under a white label. Sales of goods and services between companies (business-to-business).
B2C Proprietary branches Proprietary workshops	Sales of goods and services between companies and consumers (business-to-consumer). Branches with operations in subsidiaries, directly or indirectly majority-owned by MEKO AB. Workshops with operations in subsidiaries, directly or indirectly majority-owned by MEKO AB.
OBP	Proprietary products, such as MEKO's proprietary products ProMeister, Carwise, Kraft, Sakura, Vehcare and ForumLine.
Fleet operations	MEKO's offering to business customers comprising service and repairs of cars, sales of spare parts and
	accessories, and tire storage.
Sales to Customer Group Affiliated workshops	Sales to affiliated workshops and sales to proprietary workshops.
Sales to Customer Group	Cash sales from proprietary branches to customer groups other than Affiliated Workshops and Other B2B Customers, as well
Consumer Sales to Customer Group Partner branches	as the Group's e-commerce sales to consumers. Sales to partner branches.
Sales to Customer Group	Sales to business customers that are not affiliated with any of MEKO's concepts, including sales in
Other B2B Customers	Fleet operations.
Items affecting comparability	Events or transactions with significant effects, which are relevant for understanding the financial performance when comparing income for the current period with previous periods, including restructuring programs, expenses relating to major legal disputes, impairments and gains and losses from the acquisitions or disposals of businesses, subsidiaries, associates and joint ventures or items of a similar nature.
Concept workshops	Affiliated workshops.
LTIP	Long-term Incentive Program.
Mobility	The ability to move from A to B is a fundamental freedom and a driving force in society. Demand is timeless, and independent of the type of vehicle used.
ProMeister	MEKO's proprietary brand for high-quality spare parts with five-year guarantees, and the name of the services we offer affiliated workshops.
Spare parts for cars	Parts that are necessary for a car to function.
Partner branches Accessories for cars	Branches that are not proprietary, but conduct business under the Group's brands/branch concepts. Products that are not necessary for a car to function, but enhance the experience or extend use of the car, such as car-care products, roof boxes, car child seats, etc.
TSR	Total shareholders return
Currency effects in the balance sheet Currency transaction effects	Impact of currency with respect to realized and unrealized revaluations of foreign current non-interest-bearing receivables and liabilities. Impact of currency with respect to internal sales from Bileko Car Parts AB, and from MECA CarParts AB to each country.
Currency translation effects	Impact of currency from translation of earnings from foreign subsidiaries to SEK.
White Label	Workshops that are contract customers but do not conduct business under any of the Group's brands.
Other operating revenue	Mainly comprises rental income, marketing subsidies and exchange-rate gains.
Postal address: Box 19542	Visiting address: www.meko.com Solnavägen 4, 11th floor, Stockholm, Sweden

SE-104 32 Stockholm, Sweden Tel: +46 (0)8 464 00 20

E-mail: ir@meko.com