Lindab International

Quarterly Report • Oct 26, 2023

Lindab International AB (publ) Interim Report January - September 2023

Operating margin exceeded 10 percent in a challenging market

Lindab reported its highest third quarter in terms of sales. Ventilation Systems increased sales due to completed acquisitions. For Profile Systems, the demand has stabilised. The operating margin has gradually improved during the year and exceeded 10 percent for the Group and for both business areas. Cash flow remained strong as a result of targeted efforts to reduce working capital.

Third quarter 2023

• Net sales increased to SEK 3,251 m (3,239), a change of 0 percent. Organic sales growth was negative by 11 percent while structural changes contributed positively by 4 percent.
• Adjusted1) operating profit amounted to SEK 351 m (361).
• Operating profit amounted to SEK 351 m (358).
• Adjusted1) operating margin amounted to 10.8 percent (11.1).
• Operating margin amounted to 10.8 percent (11.1).
• Profit for the period amounted to SEK 239 m (267).
• Earnings per share before dilution amounted to SEK 3.13 (3.48) and after dilution to SEK 3.11 (3.47).
• Cash flow from operating activities increased to SEK 444 m (216).

January - September 2023

• Net sales increased by 8 percent to SEK 9,840 m (9,143). Organic sales growth was negative by 10 percent while structural changes contributed positively by 13 percent.
• Adjusted1) operating profit amounted to SEK 917 m (1,103).
• Operating profit amounted to SEK 917 m (1,081).
• Adjusted1) operating margin amounted to 9.3 percent (12.1).
• Operating margin amounted to 9.3 percent (11.8).
• Profit for the period amounted to SEK 659 m (803).
• Earnings per share before dilution amounted to SEK 8.62 (10.49) and after dilution to SEK 8.59 (10.46).
• Cash flow from operating activities increased to SEK 1,122 m (164).

Key Figures	2023 Jul-Sep	2022 Jul-Sep	Change, %	2023 Jan-Sep	2022 Jan-Sep	Change, %
Net sales, SEK m	3,251	3,239	0	9,840	9,143	8
Adjusted1) operating profit, SEK m	351	361	-3	917	1,103	-17
Operating profit, SEK m	351	358	-2	917	1,081	-15
Adjusted1) operating margin, %	10.8	11.1	-	9.3	12.1	-
Operating margin, %	10.8	11.1	-	9.3	11.8	-
Profit for the period, SEK m	239	267	-10	659	803	-18
Earnings per share before dilution, SEK	3.13	3.48	-10	8.62	10.49	-18
Earnings per share after dilution, SEK	3.11	3.47	-10	8.59	10.46	-18
Cash flow from operating activities, SEK m	444	216	106	1,122	164	584

1) Adjusted operating profit/operating margin does not include significant one-off items and restructuring costs. See 'Reconciliations' page 24.

A word from the CEO

Lindab delivered a strong operating profit in the third quarter. The operating margin for the Group and both business areas exceeded 10 percent despite challenging market conditions. The cost program follows the plan, cash flow was strong and inventory levels normalised.

Strengthened profitability for Ventilation Systems

Sales of ventilation products were high in the quarter thanks to completed acquisitions. The markets in West- and South Europe were stable while the Nordics was weaker. Increased demand for energy-efficient solutions has partly offset fewer newly started projects. The Ventilation Systems business area has prepared well for a weaker economy and improved its operating margin to 11.2 percent during the quarter.

Actions within Profile Systems yield results

The decline in new construction in the Nordic region has a direct impact on the demand for Profile Systems' products. It is primarily the project business and residential sales that have slowed down significantly.

After some tough quarters with negative inventory effects and reduced sales, the situation is beginning to stabilise and the gross margin is strengthening. Our capacity has been adjusted to the current market situation and the implemented cost program will reach full effect from October. Profitability has gradually improved during the year and the operating margin exceeded 10 percent in the quarter.

"The operating margin for the Group and both business areas exceeded 10 percent."

Lindab – a leading European ventilation company

Lindab is developing at a rapid pace. In recent years, businesses with weak profitability have been restructured or divested. After implementing the largest investment program in Lindab's history, our operations are now efficient and have the capacity to handle our growth ambitions. Thanks to improved profitability and a strong balance sheet, we have been able to complete 22 acquisitions since 2020. The development of these acquisitions has been positive.

The focus is now on 2027, when the goal is to achieve sales of SEK 20 billion with at least a 10 percent operating margin. Growth will take place in Ventilation Systems, in a combination of organic and acquired growth. The core of Profile Systems will be further developed, especially in Scandinavia where our businesses share significant synergies. Product areas and geographies that do not meet our high standards of organic growth and stable profitability will be evaluated.

Acquisitions play a significant role in Lindab's growth journey and we will continue to maintain a high pace of acquisitions within ventilation. Inventory levels have decreased and the investment program is coming to an end. The strong cash flow is freeing up resources for more acquisitions. We see a strong correlation between market position and profitability. We are adding on the product side to optimise the product portfolio. We are densifying on the distribution side to have powerful geographical coverage in each prioritised country. A good example of the latter is the acquisition in October of British HAS-Vent, a very well-managed and profitable ventilation company with sales of SEK 280 million and ten locations in the UK, one of Europe's most important ventilation markets.

"The focus is now on 2027, when the goal is to achieve sales of SEK 20 billion with at least a 10 percent operating margin."

Well-prepared for short-term challenges

Our assessment is that the European installation market will remain weak over the next 12 months. We adapt our resources to the current demand and the workforce has been reduced by 7 percent compared to a year ago.

We continue to see increased demand for sustainable and energyefficient products. This favours Lindab, which has a competitive offering in this area. As the first company in the world, Lindab can already offer ventilation ducts in recycled or fossil-free steel.

Lindab has an experienced and motivated organisation, strong European customer relations and a stable supply chain. We are now entering the next phase of the company's development and aiming for an even larger and more profitable ventilation company in 2027. Although the market situation is currently tough, Lindab has good conditions to continue developing the business in a positive direction for the future.

Grevie, October 2023

Ola Ringdahl President and CEO

Financial targets

Lindab has the following financial targets for growth, profitability and net debt:

1) Growth excluding currency effects.

2) Including the previous segment Building Systems, which was divested in 2021. 3) The outcome for annual growth including divested business was 4.0 percent for Q3 2023 R 12M, 13.0 percent in 2022 and 18.5 percent in 2021. Adjusted operating margin including divested business was 12.2 percent in 2021.

4) Net debt/EBITDA is calculated including IFRS 16 and adjusted for one-off items and restructuring costs. Financial net debt/EBITDA amounted to 1.4 for Q3 2023 R 12M, 1.0 for 2022, 0.4 for 2021, 0.5 for 2020 and 0.8 for 2019. For complete definition of financial net debt and financial net debt/EBITDA see page 26.

Lindab's sustainability work – For a better climate

Lindab's sustainability plan includes goals and activities within three areas:

• Create healthy buildings
• Reduce the environmental impact from customers
• Drive a sustainable business

Tonnes/SEK m

2021 0

2022 Q2 2023 R 12M

3

6

9

LTIF

3

CO2-emissions

Lindab's CO2 -emissions (scope 1 and 2) have decreased from 1.7 tonnes in 2022 to 1.5 tonnes per SEK m in the first half of 2023. Since 2019, CO2 -emissions have decreased by 21 percent. This is mainly due to increased modernisation and increased use of renewable energy.

is a change that Lindab takes seriously and the management has introduced several activities to improve the outcome.

nally every month.

Certified suppliers %

Lindab annually measures all the key figures that are reported in Lindab's sustainability report. Three of the key figures that are followed up every six months and are presented in the interim report. The reporting of workplace accidents is monitored inter-

A certification process has been put in place for the suppliers Lindab uses regularly. Suppliers in high-risk countries are certified first. The number of certified suppliers is increasing steadily but at a slower pace than planned. By the end of 2022, 51 percent of the suppliers had been certified. At mid-year 2023, the figure was 58 percent.

More information about Lindab's sustainability work and all key figures for 2022 can be found on the company's website and in the annual and sustainability report for 2022.

Sales, profit and cash flow

Sales and market

Net sales during the quarter amounted to SEK 3,251 m (3,239), a change of 0 percent. Organic sales growth was negative with 11 percent while the currency effects were positive by 7 percent. Structural changes contributed positively by 4 percent.

Lindab reported its highest third quarter ever in terms of sales, driven by structural growth and positive currency effects. The structural growth has been positively affected by the acquisitions of Liftasud, Raab, Irish Ventilation & Filtration, Disys, Firmac and Ventilace. Lindab's organic sales development was, on the other hand, negative during the quarter, which is a result of that most markets have been affected by subdued construction activity mainly due to higher interest rates. This has resulted in that the organic sales growth during the quarter was negative in both Ventilation Systems and Profile Systems.

Within Ventilation Systems, Lindab has actively worked on the balance between volume and profitability, with a clear objective of prioritising profitability.

Profile Systems' sales development was explained by the fact that the business has a high exposure to the Swedish market and to new building construction, where the construction activity has slowed down sharply. The organic growth in Profile Systems has also been affected by high comparable figures, where several major industrial construction projects were delivered previous year, mainly in the Nordics but also in Central Europe.

Profit

Adjusted operating profit for the quarter amounted to SEK 351 m (361). No one-off items or restructuring costs were reported during the quarter compared to SEK -3 m in the same period previous year, see Reconciliations page 24. Adjusted operating margin amounted to 10.8 percent (11.1).

The quarter's change in adjusted operating profit and adjusted operating margin was mainly explained by reduced organic sales growth. This has been partly offset by strengthened gross margin and lower costs, adjusted for structural changes. The lower costs are mainly a result of the cost-saving program that was initiated in the spring to adapt the business to lower demand in the short term. During the quarter, acquired companies also contributed positively to operating profit.

0 1,000 2,000 3,000 4,000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ⁰ 3,000 6,000 9,000 12,000 15,000 ²⁰²³ Quarter R 12M Quarter R 12M 2021 2022

Ventilation Systems' adjusted operating profit increased to SEK 268 m (223) and Profile Systems amounted to SEK 90 m (147).

The quarter's profit amounted to SEK 239 m (267). Earnings per share before dilution amounted to SEK 3.13 (3.48) and after dilution to SEK 3.11 (3.47).

Adjusted operating profit for the period January-September amounted to SEK 917 m (1,103). No one-off items or restructuring costs were reported during the period compared to SEK -22 m in the same period previous year, see Reconciliations page 24. Adjusted operating margin amounted to 9.3 percent (12.1).

Profit for the period January-September amounted to SEK 659 m (803). Earnings per share before dilution amounted to SEK 8.62 (10.49) and after dilution to SEK 8.59 (10.46).

Seasonal variations

Lindab's business is affected by seasonal variations in the construction industry, and the highest proportion of net sales is normally seen during the second half of the year. The largest seasonal variations can be found in the segment Profile Systems. Ventilation products are mainly installed indoors which is why the Ventilation Systems segment is less dependent on season or weather conditions.

Depreciation/amortisation and impairment losses

Depreciation and amortisation for the quarter amounted to SEK 155 m (128), of which SEK 15 m (12) was related to intangible assets and SEK 84 m (69) to right-of-use assets attributable to rental and lease agreement. Impairment losses during the quarter amounted to SEK 0 m (0).

Depreciation and amortisation for the period January-September amounted to SEK 445 m (346), of which SEK 43 m (27) was related to intangible assets and SEK 240 m (187) was related to right-of-use assets attributable to rental and lease agreements. Impairment losses during the period amounted to SEK 0 m (2). Impairment losses for the previous year have been reported as other operating expenses in the consolidated statement of profit or loss and were classified as one-off items and restructuring costs.

Net sales, SEK m Adjusted operating profit, SEK m

Sales, profit and cash flow (cont.)

Tax

Earnings before tax amounted to SEK 306 m (335) for the quarter and tax on profit was SEK 67 m (68). The effective tax rate amounted to 22 percent (20) and the average tax rate was 21 percent (22). The slightly higher effective tax rate compared to the average tax rate was mainly explained by the effect from non-taxable income/non-deductible costs. The deviation between the effective tax rate for the quarter and the corresponding tax rate previous period was mainly explained by positive impact in previous year from local tax reductions and adjustments related to previous years.

Earnings before tax amounted to SEK 799 m (1,023) in the period January-September and tax on profit was SEK 140 m (220). The effective tax rate amounted to 18 percent (22) and the average tax rate was 21 percent (20). The lower effective tax rate, compared to the average tax rate, was mainly explained by establishment of tax union in Germany, leading to Lindab being able to recognise previously unrecognised carry-forward tax losses. The deviation between the effective tax rate for the period and the effective tax rate during the corresponding period previous year was mainly explained by the same reason.

Cash flow

Cash flow from operating activities for the quarter increased to SEK 444 m (216). The strengthened cash flow during the period was primarily related to changes in working capital, which amounted to SEK 62 m (-199). Compared to the same period previous year, the development of working capital was mainly explained by lower amount of capital tied up in stock, a change that improved the cash flow by SEK 214 m. The positive cash flow effect from changes in working capital was partly offset by the Group's increased payments of interest and tax, a net change of SEK -50 m compared to the same period previous year. During the quarter, operating profit amounted to SEK 351 m (358) and cash flow before change in working capital equalled SEK 382 m (415).

Cash flow from financing activities for the quarter amounted to SEK -348 m (198). This included amortisation of SEK -84 m (-69) related to leasing liabilities. Other changes within financing activities were mainly related to changes in borrowing and utilisation of credit limits of net SEK -290 m (241).

Cash flow from operating activities for the period January-September increased to SEK 1,122 m (164). The improved cash flow during the period was primarily related to changes in working capital, which amounted to SEK 165 m (-991). Compared to the same period previous year, the development of working capital was mainly explained by lower amount of capital tied up in stock, a change which improved cash flow by SEK 874 m. The lower negative net cash flow impact from changes in outstanding operating receivables/liabilities also contributed positively to the development of working capital. The positive cash flow effect from changes in working capital was partly offset by the Group's increased payments of interest and tax, a net change of SEK -140 m compared to the same period previous year. Operating profit for the period January-September amounted to SEK 917 m (1,081) and cash flow before change in working capital equalled SEK 957 m (1,155).

Cash flow from financing activities for the period January-September amounted to SEK -431 m (1,018). This included amortisation of SEK -240 m (-187) related to leasing liabilities. Dividend to shareholders increased by SEK 46 m and equalled SEK -199 m (-153). Other changes within financing activities were mainly related to changes in borrowing and utilisation of credit limits of net SEK -18 m (1,332).

Cash flow from investing activities is explained under the headings 'Investments' respectively 'Business combinations'.

Cash flow from operating activities, SEK m Comparable numbers 2021 includes divested operations

Investments and financial position

Investments

Investments in intangible assets and tangible fixed assets during the quarter amounted to SEK 68 m (72), of which SEK 6 m (4) were related to investments in intangible assets.

Cash flow from investing activities, excluding business combinations, amounted net to SEK -67 m (-60) during the quarter. The cash flow included an effect from the sale of intangible assets and tangible fixed assets of SEK 1 m (12).

Investments in intangible assets and tangible fixed assets for the period January-September amounted to SEK 273 m (277), of which SEK 37 m (23) were related to investments in intangible assets.

Cash flow from investing activities, excluding business combinations, amounted net to SEK -268 m (-264) during the period January-September. The cash flow included an effect from the sale of intangible assets and tangible fixed assets of SEK 5 m (13).

Business combinations

During the quarter no acquisitions were made.

For information about previous acquisitions during 2023, see Note 3.

Financial position

Net debt amounted to SEK 3,334 m (3,390) as of September 30, 2023, of which SEK 1,341 m (1,116) was related to leasing liabilities. Currency effects decreased net debt by SEK -28 m (42) during the third quarter.

The equity/assets ratio was 51 percent (48) and the net debt/ equity ratio was 0.5 (0.5). Financial items for the quarter amounted to SEK -45 m (-23). The change is related to increased interest expenses due to a higher interest rate.

The current credit limits of SEK 1,300 m with Nordea and Raiffeisen Bank International and EUR 70 m from Raiffeisen Bank International are valid until second quarter 2026. Lindab also has a credit limit SEK 1,000 m with Nordea which is valid until second quarter 2025. All agreements contain a covenant, which is monitored quarterly. Lindab fulfilled the conditions as of September 30, 2023.

Pledged assets and contingent liabilities

No significant changes have been made in pledged collateral and contingent liabilities during the third quarter 2023.

Gross investments in fixed assets, excl. business combinations SEK m

Investment program

• Lindab continues the investment program with the objective of achieving increased capacity, higher efficiency, a safer work environment and investment in renewable solar energy.
• During the quarter, continued investments were made in Ventilation Systems and Profile Systems. The largest projects concern automation of production lines in Grevie (SE), Förslöv (SE) and Haderslev (DK).

Other

Parent company

Lindab International AB (publ), corporate identification number 556606-5446, is a registered limited liability company with its domicile in Båstad, Sweden. The Lindab share is listed on Nasdaq Stockholm, Large Cap.

Net sales for the quarter amounted to SEK 2 m (1). Profit for the quarter amounted to SEK 0 m (-4).

Net sales for the period January-September amounted to SEK 5 m (4). Profit for the period amounted to SEK 1,233 m (-2). The profit included a dividend from shares in subsidiaries of SEK 1,250 m (7).

Significant risks and uncertainties

There have been no significant changes in relation to what was stated by Lindab in its Annual Report for 2022 under Risks and Risk Management (pages 64-69).

Employees

The number of employees, calculated as full-time equivalent employees, was 4,825 (5,012) at the end of the quarter. Adjusted for acquisitions and divestments, the net decrease was 341 employees compared to the same quarter previous year.

Incentive program

Guidelines for remuneration of senior executives were most recently adopted at the Annual General Meeting in 2021. These guidelines shall as per resolution be submitted for adoption at the Annual General Meeting at least each fourth year. According to adopted guidelines, the remuneration program for senior executives shall among other things include variable cash pay elements. These variable elements shall be based on measurable criteria, which reflects predetermined financial and qualitative targets for Lindab. Based on previous resolution at the Annual General Meeting, a long-term incentive program has been implemented in 2023. The program has a three-year measuring period and any outcome in terms of long-term variable cash pay is presumed to be invested in shares or share related instruments in Lindab on market terms. The total cost in the event of maximum outcome for the three-year measuring period of 2023 to 2025 is estimated to SEK 14 m. Long-term incentive programs from 2021 respectively 2022 have essentially the same principles as the program for 2023 and these programs measuring period are 2021 to 2023 respectively 2022 to 2024.

Share option program

At the Annual General Meeting in May 2023, it was resolved to establish a share option program for senior executives in Lindab through a directed issue of maximum 275,000 share options. As a result of this program, 225,500 share options have been subscribed during the second quarter by senior executives in Lindab, according to a market valuation determined on the basis of the agreement. Liquidity regulation and thereby distribution of the share options to the participants has taken place during the beginning of the third quarter. Each share option entitles the holder to acquire one share in Lindab at a exercise price of SEK 209.70. Acquisitions of shares supported by share options may take place after Lindab has published the Q2 interim report for the year 2026 and up until 31 August of the same year. At the Annual General Meeting in 2020, 2021 and 2022, respectively, there were also resolutions to implement share option programs for senior executives. During the third quarter of 2023, 210,000 externally owned share options in the 2020 share option program were used to acquire shares in accordance with the terms of the program. This resulted that 210,000 own shares in Lindab International AB were exchanged when the share options were redeemed. The share options were redeemed at an exercise price of SEK 101.90 per share. From the 2021 share option program there are 183,950 outstanding share options with a subscription price of SEK 222.00 exercisable during summer 2024. From the 2022 share option program there are 238,050 outstanding share options with a subscription price of SEK 219.90 exercisable during summer 2025.

Annual General Meeting

The Board of Directors has decided that the Annual General Meeting will be held on May 14, 2024. Notice to the meeting will be sent in due course.

Dividend

The Annual General Meeting, held on May 11, 2023, resolved a dividend of SEK 5.20 per share. The dividend is to be distributed half-yearly and the first payment of SEK 2.60 per share was distributed in May. The second payment of SEK 2.60 per share with record date November 6, 2023 and expected payment November 9, 2023.

Nomination Committee

In accordance with a resolution passed at the Annual General Meeting, the Chairman of the Board, in conjunction with the company's three largest shareholders, has appointed a Nomination Committee. Consequently, Henrik Didner (Didner & Gerge Fonder), Thomas Ehlin (Fjärde AP-fonden), Martin Nilsson (Första AP-fonden) and Peter Nilsson (Chairman of the Board of Lindab International AB) have formed a Nomination Committee prior to Lindab's Annual General Meeting in May, 2024. Henrik Didner has been appointed as Chairman of the Nomination Committee.

Significant events during the reporting period

There are no significant events during the reporting period to report.

Significant events after the reporting period

In October, Lindab acquired the British ventilation company HAS-Vent Ltd. which is a leading manufacturer and distributor of ventilation products in the United Kingdom. The acquisition strengthens Lindab's sales and production of ventilation products in one of Europe's most important markets.

There are no other significant events after the reporting period to report.

General information

In December 2021, Lindab divested the segment Building Systems. Key figures for periods earlier than 2022 include divested operations, which result in that key figures for rolling 12 months 2022 are calculated both including and excluding divested operations.

For further information see Note 6.

Unless other indicated in this interim report, all statements refer to the Group. Figures in parentheses indicate the result of the same period previous year. Unless other stated, amounts are in SEK m.

The interim report has been audited.

This is a translation of the Swedish original report. In case of differences between the English translation and the Swedish original, the Swedish text shall prevail.

Segment – Ventilation Systems

Key performance indicators	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep
Net sales, SEK m	2,388	2,232	7,286	6,186
Net sales growth, %	7	37	18	31
Adjusted1) operating profit, SEK m	268	223	769	698
Adjusted1) operating margin, %	11.2	10.0	10.6	11.3
Number of employees by end of period	3,868	3,984	3,868	3,984

1) No one-off items and restructuring costs were reported in the third quarter 2023 compared to SEK -3 m in the same period previous year. In the period January-September 2022 one-off items and restructuring costs of SEK -22 m were reported. See Reconciliations page 24.

Sales and market

Net sales during the quarter amounted to SEK 2,388 m (2,232), an increase of 7 percent. Organic sales growth was negative by 8 percent, while currency effects were positive by 8 percent. Structural changes contributed positively by 7 percent.

Ventilation Systems reported its highest third quarter ever, in terms of sales, driven by structural growth and positive currency effects. The structural growth was related to the acquisitions Liftasud, Disys, Raab, Firmac, Irish Ventilation & Filtration and Ventilace.

Within Ventilation Systems, Lindab has actively worked on the balance between volume and profitability, with a clear objective of prioritising profitability. This together with subdued construction activity in Europe has resulted in a negative organic sales trend. The lower construction activity is a result of a higher interest rate level, which has resulted in that all regions reported negative organic sales development during the quarter.

The construction market in Western Europe was relatively stable during the quarter but varied between individual markets. Germany, which is Lindab's largest ventilation market in Western Europe following the acquisitions of Felderer and Raab, reported reduced sales. Other core markets such as France and Italy reported positive organic growth, while sales declined slightly in the United Kingdom and Ireland. Organic sales growth in Central Europe was also varied with positive growth in the Czech Republic and Romania, while sales in Poland and Estonia declined. In the Nordics, sales decreased on all markets. In general, the Nordics is the region in Europe where the construction activity has slowed down the most due to higher interest rates and cost inflation.

Profit

Adjusted operating profit during the quarter increased to SEK 268 m (223). No one-off items or restructuring costs were reported during the quarter compared to SEK -3 m in the same period previous year, see Reconciliations page 24. Adjusted operating margin increased to 11.2 percent (10.0).

The improved adjusted operating profit, which is the highest ever for a third quarter, was mainly explained by a strengthened gross margin and lower costs, adjusted for structural changes, but also by positive currency effects. The lower costs are mainly a result of the cost-saving program that was initiated in the spring to adapt the business to lower demand in the short-term. Structural changes also contributed positively to the adjusted operating profit.

Adjusted operating profit for the period January-September increased to SEK 769 m (698). No one-off items or restructuring costs were reported during the quarter compared to SEK -22 m in the same period previous year, see Reconciliations page 24. Adjusted operating margin amounted to 10.6 percent (11.3).

Activities

As one of the few companies in the world, Lindab will receive a test delivery of fossil-free steel. Lindab can also already today offer ventilation ducts in recycled steel.

During the quarter, Lindab took a mobile production facility in operation. Ventilation ducts are bulky to transport and by being able to manufacture dimensions up to 2,000 mm in diameter on site, which saves both transports and time.

Lindab International AB (publ), Corporate identification number 556606-5446, lindabgroup.com 9

Segment – Profile Systems

Key performance indicators	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep
Net sales, SEK m	863	1,007	2,554	2,957
Net sales growth, %	-14	17	-14	25
Adjusted1) operating profit, SEK m	90	147	184	447
Adjusted1) operating margin, %	10.4	14.6	7.2	15.1
Number of employees by end of period	897	973	897	973

1) No one-off items or restructuring costs have been reported in 2023 or 2022.

Sales and market

Net sales during the quarter amounted to SEK 863 m (1,007), a decrease of 14 percent. Organic sales growth was negative by 18 percent, while currency effects were positive by 4 percent.

Profile Systems reported reduced organic sales growth, which is explained by the combination of high comparable figures and clearly lower demand on the construction market.

Profile Systems has high exposure to new construction and the Swedish market, where the construction activity has slowed down significantly during the year, as a result of the higher interest rate which has generated lower investments. The Swedish market also had high sales in the same period previous year, mainly related to industrial construction projects, but also steel profiles for wall, roof and beam constructions. In the other Nordic markets, Denmark reported positive organic growth, while sales in Norway decreased marginally.

The demand in Central Europe has continued to be affected by a subdued construction market, where larger construction projects have been postponed as a result of high cost inflation. This has resulted that sales decreased on all markets during the quarter, with the exception of Hungary and Romania.

Operations in Western Europe decreased only slightly, but the impact was marginal as the region only represents a minor part of Profile Systems' total sales.

Profit

Adjusted operating profit for the quarter amounted to SEK 90 m (147). No one-off items or restructuring costs were reported during the quarter or in the same period previous year. Adjusted operating margin amounted to 10.4 percent (14.6).

The lower adjusted operating profit and operating margin is mainly explained by lower sales, but also by a slightly lower gross margin. The lower sales are a result of subdued construction activity, mainly in the Nordics but also in Central Europe. The slightly lower gross margin during the quarter has been affected by strategic measures to further reduce inventory levels in Central Europe. The adjusted operating result previous year was particularly high as a result of significant deliveries of several individual construction projects.

Adjusted operating profit for the period January-September amounted to SEK 184 m (447). No one-off items or restructuring costs were reported during the quarter or in the same period previous year. Adjusted operating margin amounted to 7.2 percent (15.1).

Activities

Profile Systems has launched Solar Roof in a new version. Solar-Roof has its solar panels integrated into the metal roof, which makes it easy to assemble. SolarRoof's solar panels are only 3 mm thick, which makes that they blend into the design of the roof.

Net sales and segments

Net sales and growth

	2023	2022	2023	2022	2022
SEK m	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Net sales	3,251	3,239	9,840	9,143	12,366
Change	12	751	697	2,055	2,718
Change, %	0	30	8	29	28
Of which
Organic, %	-11	7	-10	14	11
Acquisitions/divestments, %	4	20	13	11	13
Currency effects, %	7	3	5	4	4

Net sales per segment and region

	2023		2022		2023		2022		2022
SEK m	Jul-Sep	%	Jul-Sep	%	Jan-Sep	%	Jan-Sep	%	Jan-Dec	%
Ventilation Systems	2,388	74	2,232	69	7,286	74	6,186	68	8,444	68
- Nordic Region	733	31	801	36	2,373	33	2,511	41	3,362	40
- Western Europe	1,363	57	1,168	52	4,047	55	2,866	46	4,032	48
- Central Europe	248	10	219	10	719	10	688	11	886	10
- Other markets	44	2	44	2	147	2	121	2	164	2
Profile Systems	863	26	1,007	31	2,554	26	2,957	32	3,922	32
- Nordic Region	663	77	817	81	2,017	79	2,375	80	3,148	80
- Western Europe	48	6	45	4	127	5	135	4	176	5
- Central Europe	148	17	140	14	400	16	436	15	585	15
- Other markets	4	0	5	1	10	0	11	1	13	0
Total	3,251	100	3,239	100	9,840	100	9,143	100	12,366	100
- Nordic Region	1,396	43	1,618	50	4,390	45	4,886	54	6,510	53
- Western Europe	1,411	44	1,213	37	4,174	42	3,001	33	4,208	34
- Central Europe	396	12	359	11	1,119	11	1,124	12	1,471	12
- Other markets	48	1	49	2	157	2	132	1	177	1
Gross internal sales all segments	10		11		31		34		46

Operating profit, operating margin and earnings before tax

SEK m	2023 Jul-Sep	%	2022 Jul-Sep	%	2023 Jan-Sep	%	2022 Jan-Sep	%	2022 Jan-Dec	%
Ventilation Systems	268	11.2	223	10.0	769	10.6	698	11.3	881	10.4
Profile Systems	90	10.4	147	14.6	184	7.2	447	15.1	526	13.4
Other operations	-7	-	-9	-	-36	-	-42	-	-60	-
Adjusted operating profit	351	10.8	361	11.1	917	9.3	1,103	12.1	1,347	10.9
One-off items and restructuring costs1)	-	-	-3	-	-	-	-22	-	-22	-
Operating profit	351	10.8	358	11.1	917	9.3	1,081	11.8	1,325	10.7
Net financial items	-45	-	-23	-	-118	-	-58	-	-87	-
Earnings before tax	306	9.4	335	10.3	799	8.1	1,023	11.2	1,238	10.0

1) One-off items and restructuring costs included in adjusted operating profit are described in 'Reconciliations' page 24.

Number of employees by end of period

	2023		2022		2023		2022		2022
	Jul-Sep	%	Jul-Sep	%	Jan-Sep	%	Jan-Sep	%	Jan-Dec	%
Ventilation Systems	3,868	80	3,984	80	3,868	80	3,984	80	3,862	80
Profile Systems	897	19	973	19	897	19	973	19	936	19
Other operations	60	1	55	1	60	1	55	1	55	1
Total	4,825	100	5,012	100	4,825	100	5,012	100	4,853	100

Consolidated statement of profit or loss

SEK m	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	R 12M 2022 Oct 2023 Sep	R 12M 2021 Oct 2022 Sep	2022 Jan-Dec
Net sales	3,251	3,239	9,840	9,143	13,063	11,703	12,366
Cost of goods sold	-2,344	-2,357	-7,169	-6,522	-9,555	-8,320	-8,908
Gross profit	907	882	2,671	2,621	3,508	3,383	3,458
Other operating income	40	32	76	89	102	130	115
Selling expenses	-393	-339	-1,172	-963	-1,547	-1,264	-1,338
Administrative expenses	-166	-158	-522	-467	-714	-608	-659
R&D expenses	-17	-14	-50	-44	-67	-58	-61
Other operating expenses	-20	-45	-86	-155	-121	-191	-190
Total operating expenses	-556	-524	-1,754	-1,540	-2,347	-1,991	-2,133
Operating profit1)	351	358	917	1,081	1,161	1,392	1,325
Interest income	3	1	6	3	8	3	5
Interest expenses	-47	-21	-125	-49	-158	-59	-82
Other financial income and expenses	-1	-3	1	-12	3	-15	-10
Financial items	-45	-23	-118	-58	-147	-71	-87
Earnings before tax	306	335	799	1,023	1,014	1,321	1,238
Tax on profit for the period	-67	-68	-140	-220	-184	-284	-264
Profit for the period, continuing operations	239	267	659	803	830	1,037	974
Discontinued operations
Profit/loss for the period from discontinued operations, net after tax	-	-	-	-	-	-13	-
Profit/loss for the period, discontinued operations	-	-	-	-	-	-13	-
Total operations
Profit/loss for the period, total operations	239	267	659	803	830	1,024	974
–attributable to the Parent company's shareholders	239	267	659	803	830	1,024	974
–attributable to non-controlling interests	-	-	-	-	-	-	-
Earnings per share, before dilution, SEK2)	3.13	3.48	8.62	10.49	10.86	13.37	12.73
–of which relates to continuing operations	3.13	3.48	8.62	10.49	10.86	13.54	12.73
Earnings per share, after dilution, SEK2)	3.11	3.47	8.59	10.46	10.83	13.33	12.70
–of which relates to continuing operations	3.11	3.47	8.59	10.46	10.83	13.50	12.70

1) One-off items and restructuring costs, which are included in operating profit, are described in 'Reconciliations' on page 24.

2) Based on the number of outstanding shares, i.e. excluding treasury shares.

Consolidated statement of comprehensive income

					R 12M	R 12M
SEK m	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	2022 Oct 2023 Sep	2021 Oct 2022 Sep	2022 Jan-Dec
Profit for the period, total operations	239	267	659	803	830	1,024	974
Items that will not be reclassified to the statement of profit or loss
Actuarial gains/losses, defined benefit plans	9	46	32	103	9	102	80
Deferred tax attributable to defined benefit plans	-1	-9	-6	-21	-1	-20	-16
Total	8	37	26	82	8	82	64
Items that will later be reclassified to the statement of profit or loss
Translation differences, foreign operations	-198	89	201	278	325	305	402
Hedges of net investments	16	-27	-30	-67	-37	-10	-74
Tax attributable to hedges of net investments	-4	6	6	14	7	1	15
Total	-186	68	177	225	295	296	343
Other comprehensive income, net of tax	-178	105	203	307	303	378	407
Total comprehensive income	61	372	862	1,110	1,113	1,402	1,381
–attributable to the Parent company's shareholders –attributable to non-controlling interests	61 -	372 -	862 -	1,110 -	1,113 -	1,402 -	1,381 -

Consolidated statement of cash flow

SEK m	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	R 12M 2022 Oct 2023 Sep	R 12M 2021 Oct 2022 Sep	2022 Jan-Dec
OPERATING ACTIVITIES
Operating profit	351	358	917	1,081	1,161	1,392	1,325
Operating profit, discontinued operations1)	-	-	-	-	-	-25	-
Reversal of depreciation/amortisation and impairment losses	155	128	445	348	580	455	483
Reversal of capital gains (-)/losses (+) reported in operating profit	-1	-5	-3	-5	-3	-5	-5
Provisions, not affecting cash flow	3	12	12	19	11	24	18
Adjustment for other items not affecting cash flow	1	-1	3	-11	5	-12	-9
Total	509	492	1,374	1,432	1,754	1,829	1,812
Interest received	2	1	6	3	7	4	4
Interest paid	-48	-22	-124	-51	-157	-71	-84
Tax paid	-81	-56	-299	-229	-378	-282	-308
Cash flow from operating activities before change in working capital	382	415	957	1,155	1,226	1,480	1,424
Change in working capital
Stock (increase -/decrease +)	36	-178	261	-613	522	-889	-352
Operating receivables (increase -/decrease +)	14	78	-322	-476	141	-242	-13
Operating liabilities (increase +/decrease -)	12	-99	226	98	-240	30	-368
Total change in working capital	62	-199	165	-991	423	-1,101	-733
Cash flow from operating activities	444	216	1,122	164	1,649	379	691
INVESTING ACTIVITIES
Acquisition of Group-/associated companies	-4	-283	-297	-983	-297	-1,050	-983
Divestment of Group companies	-	-12	-	-12	-	147	-12
Investments in intangible assets	-6	-4	-37	-23	-54	-35	-40
Investments in tangible fixed assets	-62	-68	-236	-254	-301	-347	-319
Change in financial fixed assets	0	0	0	0	0	0	0
Disposal of intangible assets	-	-	1	-	1	0	-
Disposal of tangible fixed assets	1	12	4	13	5	13	14
Cash flow from investing activities	-71	-355	-565	-1,259	-646	-1,272	-1,340
FINANCING ACTIVITIES
Proceeds from borrowings	-	241	272	1,332	272	1,332	1,332
Repayment of borrowings	-290	-	-290	-	-527	-63	-237
Repayment of leasing-related liabilities	-84	-69	-240	-187	-312	-247	-259
Issue of shares/share options and redemption of share options	26	26	26	26	26	26	26
Dividend to shareholders	-	-	-199	-153	-352	-283	-306
Cash flow from financing activities	-348	198	-431	1,018	-893	765	556
Cash flow for the period	25	59	126	-77	110	-128	-93
Cash and cash equivalents at start of the period	613	429	481	542	495	597	542
Effect of exchange rate changes on cash and cash equi valents	-19	7	12	30	14	26	32
Cash and cash equivalents at end of the period	619	495	619	495	619	495	481

1) For information of cash flow per category in terms of discontinued operations, i.e. Building Systems, see Note 6.

Consolidated statement of financial position

SEK m	30 Sep 2023	30 Sep 2022	31 Dec 2022
ASSETS
Non-current assets
Goodwill	4,317	3,890	3,967
Other intangible assets	318	290	282
Tangible fixed assets	2,178	1,960	2,014
Right-of-use assets	1,285	1,059	1,156
Financial interest-bearing fixed assets	25	31	25
Other financial fixed assets	25	27	27
Deferred tax assets	70	46	36
Total non-current assets	8,218	7,303	7,507
Current assets
Stock	2,595	2,989	2,752
Accounts receivable	2,295	2,357	1,951
Other current assets	424	289	262
Other interest-bearing receivables	31	7	4
Cash and cash equivalents	619	495	481
Total current assets	5,964	6,137	5,450
TOTAL ASSETS	14,182	13,440	12,957
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity attributable to Parent company shareholders	7,240	6,480	6,751
Total shareholders' equity	7,240	6,480	6,751
Non-current liabilities
Interest-bearing provisions for pensions and similar obligations	200	205	217
Liabilities to credit institutions	2,360	2,466	2,349
Lease liabilities	1,030	849	930
Deferred tax liabilities	165	159	150
Provisions	7	5	7
Other non-current liabilities	53	43	41
Total non-current liabilities	3,815	3,727	3,694
Current liabilities
Other interest-bearing liabilities	108	136	42
Lease liabilities	311	267	282
Provisions	11	8	11
Accounts payable	1,168	1,305	974
Other current liabilities	1,529	1,517	1,203
Total current liabilities	3,127	3,233	2,512
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	14,182	13,440	12,957

Consolidated statement of changes in equity

	Shareholders' equity attributable to Parent
SEK m	Share capital	Other contributed capital	Foreign currency translation reserve	Profit brought forward incl. profit for the year	Total sharehol ders' equity
Closing balance, 31 December 2021	79	2,272	180	3,119	5,650
Profit for the period				803	803
Other comprehensive income, net of tax
Actuarial gains/losses, defined benefit plans				82	82
Translation differences, foreign operations			278		278
Hedges of net investments (after tax)			-53		-53
Total comprehensive income	-	-	225	885	1,110
Issuance/redemption of share options				26	26
Dividends to shareholders				-306	-306
Transactions with shareholders	-	-	-	-280	-280
Closing balance, 30 September 2022	79	2,272	405	3,724	6,480
Profit for the period				171	171
Other comprehensive income, net of tax
Actuarial gains/losses, defined benefit plans				-18	-18
Translation differences, foreign operations			124		124
Hedges of net investments (after tax)			-6		-6
Total comprehensive income	-	-	118	153	271
Closing balance, 31 December 2022	79	2,272	523	3,877	6,751
Profit for the period				659	659
Other comprehensive income, net of tax
Actuarial gains/losses, defined benefit plans				26	26
Translation differences, foreign operations			201		201
Hedges of net investments (after tax)			-24		-24
Total comprehensive income	-	-	177	685	862
Issuance/redemption of share options				26	26
Dividends to shareholders				-399	-399
Transactions with shareholders	-	-	-	-373	-373
Closing balance, 30 September 2023	79	2,272	700	4,189	7,240

Share capital

At September 30, 2023, the share capital equalled SEK 78,842,820 (78,842,820) divided among 78,842,820 shares (78,842,820) with a quota value of SEK 1.00. During the third quarter 210,000 externally owned share options in the 2020 share option program were used to acquire shares (see 'Share option program', page 7), which resulted in a sale of 210,000 own shares in Lindab International AB (publ). At the end of the third quarter Lindab International AB (publ) holds 1,990,838 treasury shares (2,200,838), corresponding to 2.5 percent (2.8) of the total number of Lindab shares. The number of outstanding shares totals 76,851,982 (76,641,982).

Proposed dividend to shareholders

In accordance with the proposal of the Board of Directors, the Annual General Meeting on May 11, 2023, decided that dividends of SEK 5.20 per share, corresponding to SEK 399 m, would be paid for the financial year. The remaining retained earnings of SEK 1,443 m will be carried forward. The dividend of SEK 5.20 per share will be distributed half-yearly, with the first dividend of SEK 2.60 per share, corresponding to SEK 199 m, with record date May 15, 2023 and the second dividend of SEK 2.60 per share, corresponding to SEK 199 m, with record date November 6, 2023.

Parent company

Statement of profit or loss

SEK m	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	2022 Jan-Dec
Net sales	2	1	5	4	6
Administrative expenses	-3	-2	-8	-7	-9
Operating profit	-1	-1	-3	-3	-3
Profit from subsidiaries	-	-	1,250	7	62
Interest expenses, internal	0	-4	-19	-8	-15
Earnings before tax	-1	-5	1,228	-4	44
Tax on profit for the period	1	1	5	2	-8
Profit or loss for the period1)	0	-4	1,233	-2	36

1) Comprehensive income corresponds to profit for all periods.

Statement of financial position

SEK m	30 Sep 2023	30 Sep 2022	31 Dec 2022
ASSETS
Non-current assets
Financial fixed assets
Shares in Group companies	3,467	3,467	3,467
Financial interest-bearing fixed assets	5	5	5
Deferred tax assets	1	1	1
Total non-current assets	3,473	3,473	3,473
Current assets
Receivables from Group companies	220	-	55
Current tax receivable	3	3	-
Cash and cash equivalents	0	0	0
Total current assets	223	3	55
TOTAL ASSETS	3,696	3,476	3,528
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Restricted shareholders' equity
Share capital	79	79	79
Statutory reserve	708	708	708
Unrestricted shareholders' equity
Share premium reserve	90	90	90
Profit brought forward	1,379	1,716	1,716
Profit/loss for the period	1,233	-2	36
Total shareholders' equity	3,489	2,591	2,629
Provisions
Interest-bearing provisions	5	5	5
Total provisions	5	5	5
Current liabilities
Liabilities to Group companies	-	725	886
Current tax liability	-	-	6
Accrued expenses and deferred income	2	2	2
Other liabilities	200	153	-
Total current liabilities	202	880	894
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	3,696	3,476	3,528

Key performance indicators

		2023				2022		2021
SEK m		Jul-Sep Apr-Jun Jan-Mar		Oct-Dec Jul-Sep Apr-Jun Jan-Mar				Oct-Dec Jul-Sep
Net sales	3,251	3,365	3,224	3,223	3,239	3,171	2,733	2,560	2,488
Growth, %	0	6	18	26	30	27	30	23	21
- of which organic	-11	-13	-5	1	7	14	23	20	19
- of which acquisitions/divestments	4	14	20	20	20	10	3	3	3
- of which currency effects	7	5	3	5	3	3	4	0	-1
Operating profit before depreciation/amortisation and impairment losses	506	450	406	379	486	514	429	418	500
Operating profit	351	302	264	244	358	402	321	311	403
Adjusted operating profit	351	302	264	244	361	402	340	311	403
Earnings before tax	306	263	230	215	335	381	307	298	394
Profit for the period	239	240	180	171	267	300	236	234	299
Operating margin, %	10.8	9.0	8.2	7.6	11.1	12.7	11.7	12.1	16.2
Adjusted operating margin, %	10.8	9.0	8.2	7.6	11.1	12.7	12.4	12.1	16.2
Profit margin before tax, %	9.4	7.8	7.1	6.7	10.3	12.0	11.2	11.6	15.8
Key performance indicators including divested business1)
Net sales	3,251	3,365	3,224	3,223	3,239	3,171	2,733	2,846	2,778
Growth, %	0	6	18	13	17	15	22	23	21
- of which organic	-11	-13	-5	1	7	13	21	20	20
- of which acquisitions/divestments	4	14	20	8	7	0	-3	3	2
- of which currency effects	7	5	3	4	3	2	4	0	-1
Operating profit before depreciation/amortisation and impairment losses	506	450	406	379	486	514	429	393	494
Operating profit	351	302	264	244	358	402	321	286	6
Adjusted operating profit	351	302	264	244	361	402	340	324	424
Earnings before tax	306	263	230	215	335	381	307	275	-2
Profit for the period	239	240	180	171	267	300	236	221	-102
Operating margin, %	10.8	9.0	8.2	7.6	11.1	12.7	11.7	10.0	0.2
Adjusted operating margin, %	10.8	9.0	8.2	7.6	11.1	12.7	12.4	11.4	15.3
Profit margin before tax, %	9.4	7.8	7.1	6.7	10.3	12.0	11.2	9.7	-0.1
Key performance indicators including divested business1)
Cash flow from operating activities	444	323	355	527	216	161	-213	215	202
Cash flow from operating activities per share, SEK	5.78	4.21	4.64	6.88	2.82	2.11	-2.79	2.82	2.64
Free cash flow	373	159	25	446	-139	-564	-392	202	8
Adjusted free cash flow	377	216	261	446	156	63	-319	110	107
Cash flow, investments in intangible assets/tangible fixed assets	-68	-108	-97	-82	-72	-99	-106	-105	-97
Key performance indicators including divested business1)
Number of shares outstanding, thousands	76,852	76,642	76,642	76,642	76,642	76,467	76,467	76,467	76,467
Average number of shares outstanding, thousands	76,690	76,636	76,595	76,552	76,508	76,451	76,423	76,396	76,368
Earnings per share, before dilution, SEK	3.13	3.14	2.35	2.24	3.48	3.92	3.09	2.88	-1.33
Earnings per share, after dilution, SEK	3.11	3.13	2.35	2.24	3.47	3.91	3.08	2.87	-1.34
Shareholders' equity attributable to Parent company shareholders	7,240	7,158	7,011	6,751	6,480	6,087	5,932	5,650	5,358
Shareholders' equity attributable to non-controlling interests	-	-	-	-	-	-	-	-	-
Shareholders' equity per share, SEK	94.21	93.39	91.69	88.08	84.54	79.61	77.58	73.89	70.07
Net debt	3,334	3,747	3,456	3,310	3,390	3,169	2,155	1,696	1,836
Adjusted net debt	1,993	2,354	2,173	2,098	2,274	2,069	1,305	820	864
Financial net debt2)	1,818	2,172	1,958	1,905	2,100	1,865	1,058	578	612
Net debt/equity ratio, times	0.5	0.5	0.5	0.5	0.5	0.5	0.4	0.3	0.3
Equity/asset ratio, %	51.1	49.3	51.4	52.1	48.2	48.1	53.8	54.8	49.8
Return on equity, %	12.0	12.8	14.2	15.8	17.3	11.5	11.4	9.9	9.5
Return on capital employed, %	10.7	11.0	12.7	14.1	15.5	12.3	12.3	11.0	10.6
Interest coverage ratio, times	7.5	7.1	7.6	7.7	16.6	27.0	24.9	26.7	0.8
Net debt/EBITDA, excl. one-off items and restructuring cost	2.0	2.0	1.8	1.6	1.3	1.1	1.0	1.0	1.1
Financial net debt/EBITDA, excl. IFRS 16, excl. one-off items and restructuring costs2)	1.4	1.4	1.2	1.0	0.8	0.6	0.4	0.4	0.4
Number of employees by end of period	4,825	4,912	4,926	4,853	5,012	4,920	4,579	4,549	5,182
of which employees in discontinued operations	-	-	-	-	-	-	-	-	683

1) Key performance indicators for periods earlier than 2022 include divested business (Building Systems), which results that rolling 12 months in 2022 are calculated on both outcomes including and excluding divested business.

2) From the third quarter 2023, this alternative key figure is included as a supplement to other financial information with the aim of further clarifying the structure of the Group's leverage.

Key performance indicators (cont.)

	2023	2022	2022	2021	2020
SEK m	Jan-Sep	Jan-Sep	Jan-Dec	Jan-Dec	Jan-Dec
Net sales	9,840	9,143	12,366	9,648	8,220
Growth, %	8	29	28	17	-3
- of which organic	-10	14	11	17	-2
- of which acquisitions/divestments	13	11	13	2	0
- of which currency effects	5	4	4	-2	-1
Operating profit before depreciation/amortisation and impairment losses	1,362	1,429	1,808	1,660	1,185
Operating profit	917	1,081	1,325	1,266	790
Adjusted operating profit	917	1,103	1,347	1,266	860
Earnings before tax	799	1,023	1,238	1,223	752
Profit for the period	659	803	974	958	554
Operating margin, %	9.3	11.8	10.7	13.1	9.6
Adjusted operating margin, %	9.3	12.1	10.9	13.1	10.5
Profit margin before tax, %	8.1	11.2	10.0	12.7	9.1
Key performance indicators including divested business1)
Net sales	9,840	9,143	12,366	10,619	9,166
Growth, %	8	29	16	16	-7
- of which organic	-10	14	10	17	-6
- of which acquisitions/divestments	13	11	3	2	1
- of which currency effects	5	4	3	-3	-2
Operating profit before depreciation/amortisation and impairment losses	1,362	1,429	1,808	1,645	1,284
Operating profit	917	1,081	1,325	841	846
Adjusted operating profit	917	1,103	1,347	1,297	916
Earnings before tax	799	1,023	1,238	802	811
Profit for the period	659	803	974	537	596
Operating margin, %	9.3	11.8	10.7	7.9	9.2
Adjusted operating margin, %	9.3	12.1	10.9	12.2	10.0
Profit margin before tax, %	8.1	11.2	10.0	7.6	8.8
Key performance indicators including divested business1)
Cash flow from operating activities	1,122	164	691	704	1,129
Cash flow from operating activities per share, SEK	14.63	2.14	9.03	9.22	14.79
Free cash flow	557	-1,095	-649	300	466
Adjusted free cash flow	854	-100	346	319	709
Cash flow, investments in intangible assets/tangible fixed assets	-273	-277	-359	-395	-425
Key performance indicators including divested business1)
Number of shares outstanding, thousands	76,852	76,642	76,642	76,467	76,357
Average number of shares outstanding, thousands	76,690	76,508	76,552	76,396	76,340
Earnings per share, before dilution, SEK	8.62	10.49	12.73	7.02	7.80
Earnings per share, after dilution, SEK	8.59	10.46	12.70	7.00	7.80
Dividend per share, SEK	-	-	5.202)	4.00	3.40
Shareholders' equity attributable to Parent company shareholders	7,240	6,480	6,751	5,650	5,178
Shareholders' equity attributable to non-controlling interests	-	-	-	-	0
Shareholders' equity per share, SEK	94.21	84.54	88.08	73.89	67.82
Net debt	3,334	3,390	3,310	1,696	1,640
Adjusted net debt	1,993	2,274	2,098	820	663
Financial net debt3)	1,818	2,100	1,905	578	414
Net debt/equity ratio, times	0.5	0.5	0.5	0.3	0.3
Equity/asset ratio, %	51.1	48.2	52.1	54.8	55.1
Return on equity, %	12.0	17.3	15.8	9.9	11.6
Return on capital employed, %	10.7	15.5	14.1	11.0	11.5
Interest coverage ratio, times	7.4	21.9	16.2	20.0	19.0
Net debt/EBITDA, excl. one-off items and restructuring costs	2.0	1.3	1.6	1.0	1.4
Financial net debt/EBITDA, excl. IFRS 16, excl. one-off items and res
tructuring costs3)	1.4	0.8	1.0	0.4	0.5
Number of employees by end of period	4,825	5,012	4,853	4,549	5,078
of which employees in discontinued operations	-	-	-	-	692

1) Key performance indicator for periods earlier than 2022 include divested business (Building Systems), which results that rolling 12 months in 2022 are calculated

on both outcomes, including and excluding divested business.

2) The dividend for 2022 is distributed half-yearly with the first dividend of SEK 2.60 per share with record date in May 2023, and the second dividend of SEK 2.60 per share with record date in November 2023.

3) From the third quarter 2023, this alternative key figure is included as a supplement to other financial information with the aim of further clarifying the structure of the Group's leverage.

Notes

NOTE 1 – ACCOUNTING POLICIES

The consolidated accounts for the interim report have, similar to the annual consolidated accounts for 2022, been prepared in in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, the Swedish Annual Accounts Act and the Swedish Financial Reporting Board RFR 1, Supplementary Accounting Rules for Groups.

This interim report has been prepared in accordance with IAS 34 Interim financial reporting. The Group has applied the same accounting policies as described in the Annual Report for 2022.

None of the new or amended standards, interpretations or improvements adopted by the EU have had any significant impact on the Group.

Information in terms of IAS 34 p. 16A Interim financial reporting has been disclosed in notes to the financial statements as well as in other pages of the interim report.

The Parent company

The financial statements for the Parent company are prepared according to the Swedish Annual Accounts Act and RFR 2, Accounting for legal entities and according to the same accounting policies as were applied in the Annual Report for 2022.

NOTE 2 – EFFECTS OF CHANGES IN ACCOUNTING ESTIMATES AND JUDGEMENTS

Significant estimates and judgements are described in Note 4 in the Annual report for 2022. No essential changes, which could have a material impact on this interim report, have been made to what is described in the Annual Report for 2022.

NOTE 3 – BUSINESS COMBINATIONS

Ventilace EU

On April 24, 2023 Lindab signed an agreement to acquire the Czech ventilation business Ventilace EU, an acquisition that was finalised on June 5, 2023. Ventilace EU is a well-established manufacturer of rectangular ventilation ducts in the Czech Republic. With the acquisition, Lindab strengthens both sales and production of rectangular ventilation ducts mainly in the Czech Republic. Ventilace EU is registered in Prague, Czech Republic. The business has annual sales of approximately SEK 42 m and a operating margin that is slightly lower than the Lindab Group's. Ventilace EU has 30 employees.

The purchase consideration of the business Ventilace EU was mainly settled at time of acquisition. Transaction related costs amounted to SEK 4 m, of which SEK 3 m is recognised as other operating expenses in 2023 and the remaining in previous year.

According to preliminary purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab strengthens its position in the Czech Republic, obtain local expertise on rectangular production and is expected to achieve buyer specific synergies. Identified intangible assets are mainly related to customer relations and the trademark Ventilace.

Ventilace EU is consolidated in Lindab as of June 5, 2023. The acquisition has increased net sales of Lindab by SEK 12 m, from the time of acquisition until September 30 current year, and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 30 m. The business is part of the Ventilation Systems segment.

Firmac Ltd.

On May 2, 2023, Lindab acquired all shares and voting rights of the British ventilation company Firmac Ltd., which is the leader in Europe of machines for manufacturing of rectangular ventilation ducts. Lindab is the market leader of machines for manufacturing of circular ventilation ducts through its Spiro business. With the acquisition of Firmac Ltd. Lindab gets the corresponding business for rectangular ducts. Firmac Ltd. is registered in Scarborough, United Kingdom. The company has annual sales of approximately SEK 40 m and an operating margin in line with the Lindab Group's. Firmac Ltd. has 32 employees.

The purchase consideration of Firmac Ltd. was settled at time of acquisition. Transaction related costs amounted to SEK 3 m, of which SEK 1 m is recognised as other operating expenses in 2023 and the remaining in previous year.

According to preliminary purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab access expertise in machines for manufacturing rectangular ventilation ducts and a complement to Spiro for other machine technic within the segment Ventilation System. Identified intangible assets are mainly related to customer relations and the trademark Firmac.

Firmac Ltd. is consolidated in Lindab as of May 2, 2023. The acquisition has increased net sales of Lindab by SEK 21 m, from the time of acquisition until September 30 current year, and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 34 m. The company is part of the Ventilation Systems segment.

Irish Ventilation & Filtration Ltd.

On March 3, 2023, Lindab acquired all shares and voting rights of the Irish ventilation company Irish Ventilation & Filtration Ltd. The company is a leading distributor of ventilation products and targets mainly maintenance and repair departments of large international companies as well as mechanical contractors. The company primarily offers filters and fans, but also dampers, grilles and ventilation ducts. The company also has its own design and manufacturing of air handling units. With the acquisition Lindab access new customer categories, an increased product range and strengthens its presence further on Ireland. Irish Ventilation & Filtration Ltd. is registered in Crumlin, Ireland. The company has annual sales of approximately SEK 100 m and a higher operating margin than the Lindab Groups'. Irish Ventilation & Filtration Ltd. has 19 employees.

The purchase consideration of Irish Ventilation & Filtration Ltd. was mainly settled at time of acquisition. Transaction related costs amounted to SEK 3 m and these are recognised as other operating expenses.

Notes (cont.)

According to preliminary purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab strengthens its presence further on Ireland, access expertise within ventilation distribution and receive a wider product range of ventilation products. Identified intangible assets are mainly related to customer relations and the trademark Irish Ventilation & Filtration.

Irish Ventilation & Filtration is consolidated in Lindab as of March 3, 2023. The acquisition has increased net sales of Lindab by SEK 69 m, from the time of acquisition until September 30 current year, and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 86 m. The company is part of the Ventilation Systems segment.

Raab Lüftungstechnik GmbH

On February 28, 2023, Lindab acquired all shares and voting rights of the German ventilation company Raab Lüftungstechnik GmbH. The company is a leading manufacturer of high-quality rectangular ventilation ducts in southern Germany. By adding the company to Lindab's business, the Group further strengthens its position in Germany, a market that is assessed to have big potential for the Group going forward. Raab Lüftungstechnik GmbH is registered in Großmehring, north of Munich in Germany. The company has annual sales of approximately SEK 160 m and an operating margin in line with the Lindab Groups'. Raab Lüftungstechnik GmbH has 95 employees.

The preliminary purchase consideration of Raab Lüftungstechnik GmbH was mainly settled at time of acquisition. Transaction related costs amounted to SEK 4 m, of which SEK 3 m is recognised as other operating expenses in 2023 and the remaning in previous year.

According to preliminary purchase price allocation analysis, the acquisition resulted in a goodwill. This goodwill is, among other things, related to that Lindab strengthens its position on an important market, both related to sales and production of rectangular ventilation ducts. The acquisition (together with Felderer GmbH which was acquired in 2022) is also expected to bring an even stronger customer offer, and possible forward looking buyer specific synergies. Identified intangible assets are mainly related to customer relations and the trademark Raab.

Raab Lüftungstechnik GmbH is consolidated in Lindab as of February 28, 2023. The acquisition has increased net sales of Lindab by SEK 92 m, from the time of acquisition until September 30 current year, and the net profit after tax is impacted positively. If the acquisition had been implemented as of January 1, 2023, the Group's net sales would have increased by SEK 120 m. The company is part of the Ventilation Systems segment.

Other

In terms of 2023, the cash flow related to acquisitions derives, beside previously mention transactions, from settlement of conditional additional purchase considerations of SEK 38 m in terms of previously made business combinations.

Acquired businesses 2023

SEK m	2023-09-30 1),2)
Intangible assets	32
Tangible fixed assets	42
Right-of-use assets	26
Deferred tax assets	0
Stock	52
Current assets	37
Cash and cash equivalents	40
Total acquired assets	229
Deferred tax liabilities	-8
Non-current lease liabilities	-22
Current lease liabilities	-5
Current liabilities	-87
Total acquired liabilities	-122
Fair value of acquired net assets	107
Goodwill3)	241
Consideration including additional contingent consideration4)	348

1) Acquired companies consist of assets and liabilities from Ventilace EU a.s., and the companies Firmac Ltd., Irish Ventilation & Filtration Ltd. and Raab Lüftungstechnik GmbH.

2) The purchase price allocations were preliminary as of September 30 2023, due to not finalised valuations of identified intangible assets.

3) No portion of reported goodwill is deductible for income tax.

4) The considerations are based on cash payments. The values include unconditional additional purchase considerations of SEK 13 m and conditional additional purchase considerations of SEK 45 m. The conditional additional purchase consideration will be settled fully or partly if future expectations of identified levels of sales and profitability are met during a period of 2 or 3 years. Total possible undiscounted amount for all recognised future conditional additional purchase consideration is between SEK 0-80 m. On September 30, 2023, it was considered likely that 93 percent of maximum potential remaining consideration would occur.

NOTE 4 – OPERATING SEGMENTS

The Group's segments comprise Ventilation Systems and Profile Systems. The basis for segmental reporting is the various customer offers provided by each business area. The customer offers within each segment were follows:

• Ventilation Systems offers air duct systems with accessories and indoor climate solutions for ventilation of heating and cooling to installers and other customers in the ventilation industry.
• Profile Systems offers the construction industry products and systems in sheet metal for rainwater systems, cladding for ceilings and walls as well as steel profiles for wall, ceiling and beam constructions.

Both Ventilation Systems' and Profile Systems' operations are managed based on geographically divided sales organisations, which are supported by a number of product and system areas with joint production and purchasing functions for each business area. What is reported under Other includes the Parent company and other common functions.

Information on income from external customers and adjusted operating profit per operating segment is presented in the tables on page 11. See also pages 9-10 for further segment information.

Notes (cont.)

Internal prices between the Group's segments are set based on the principle of arm's length, that is, between parties that are independent of each other, well-informed and have an interest in the transaction being carried out. Assets and investments are reported where the asset exists.

NOTE 5 – FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

SEK m	30 September 2023		30 September 2022		31 December 2022
Disclosures regarding the fair value by class	Carrying amount	Fair value	Carrying amount	Fair value	Carrying amount	Fair value
Financial assets
Derivative receivables	29	29	5	5	2	2
Financial liabilities
Liabilities to credit institutions	2,372	2,355	2,470	2,470	2,361	2,357
Derivative liabilities	4	4	16	16	21	21

Fair value

Derivatives relate to forward exchange contracts which are valued at fair value by discounting the difference between the contracted forward rate and the forward rate that can be subscribed for on the balance sheet date for the remaining contract term. The fair value of interest-bearing liabilities to credit institutions is provided for the purpose of disclosure and is calculated by discounting the future cash flows of principal and interest payments, discounted at current market interest rate.

The derivative assets and derivative liabilities that exist can all be found at Level 2 of the valuation hierarchy.

For other financial assets and liabilities, the carrying amount is deemed to be a reasonable approximation of fair value. The Group holdings of unlisted shares, the fair value of which cannot be estimated reliably, are recognised at acquisition cost. The carrying amount is SEK 4 m (4).

NOTE 6 – DISCOUNTINUED OPERATIONS

On September 23, 2021, Lindab signed an agreement to divest all shares and voting rights in the business area/segment Building Systems. Based on the decision to divest and the agreement as well as the current structure of the business, all prerequisites was assessed to be complied to in order to recognise Building Systems as an asset held for sale/a discontinued operation. This in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The classification was applied as of the third quarter 2021.

The agreement to divest Building Systems was, among other things, conditioned and subject to anti-trust approval in Russia. During the fourth quarter, this approval was obtained from the Russian authority and the divestment of Building Systems was finalised by end of December 2021. As a consequence, Building Systems was recognised as discounted operations by end of the fourth quarter 2021.

For interim reports prepared in 2022 and later, the application of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations implies, among other things, that net profit after tax for Building Systems in the comparison period is recognised separately in the consolidated statement of profit or loss, distinguished from the continuing operations. In the consolidated statement of cash flow is operating profit for continuing respectively discontinued operations/operations held for sale recognised separately, but thereafter is the cash flow presented for Lindab as a Group. For information about Building Systems, see next page.

Notes (cont.)

Statement of Profit or loss, discontinued operations

SEK m	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	R 12M 2022 Oct 2023 Sep	R 12M 2021 Oct 2022 Sep	2022 Jan-Dec
Net sales	-	-	-	-	-	286	-
Cost of goods sold	-	-	-	-	-	-223	-
Gross profit	-	-	-	-	-	63	-
Other operating income	-	-	-	-	-	0	-
Selling expenses	-	-	-	-	-	-20	-
Administrative expenses	-	-	-	-	-	-23	-
R&D expenses	-	-	-	-	-	-3	-
Other operating expenses	-	-	-	-	-	-42	-
Total operating expenses	-	-	-	-	-	-88	-
Operating profit1)	-	-	-	-	-	-25	-
Financial items	-	-	-	-	-	2	-
Earnings before tax	-	-	-	-	-	-23	-
Tax on profit/loss for the period	-	-	-	-	-	10	-
Profit/loss for the period1)	-	-	-	-	-	-13	-
Earnings per share before dilution, SEK	-	-	-	-	-	-0.17	-
Earnings per share after dilution, SEK	-	-	-	-	-	-0.17	-

1) For the period R 12M 2021 October - 2022 September, one-off items and restructuring costs of SEK -38 m related to the divestment of Building Systems were recognised within operating profit. The value was a consequence of the made decision to divest Building Systems and mainly related to impairment of goodwill, when assessing the value to the lower of carrying amount and fair value less costs to sell. One-off items and restructuring costs impacting net profit amounted to SEK -23 m.

Statement of cash flow, discontinued operations

SEK m	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	R 12M 2022 Oct 2023 Sep	R 12M 2021 Oct 2022 Sep	2022 Jan-Dec
Cash flow from operating activities	-	-	-	-	-	-77	-
Cash flow from investing activities	-	-	-	-	-	-7	-
Cash flow from financing activities	-	-	-	-	-	-28	-
Cash flow for the period	-	-	-	-	-	-111	-

NOTE 7 – RELATED PARTY TRANSACTIONS

Lindab's related parties and the extent of transactions with its related parties are described in Note 33 of the Annual Report for 2022.

At the Annual General Meeting in May 2023, it was resolved to adopt a share option program for senior executives. Under the program 225,500 share options were acquired by senior executives during the second quarter. During the third quarter 210,000 previously issued share options in the 2020 share option program were issued to acquire shares in accordance with the terms of the program. See more under 'Share option program', page 7.

During the period, there have been no other transactions between Lindab and related parties which have had a significant impact on the company's position and profit.

This interim report for Lindab International AB (publ) has been submitted following approval by the Board of Directors. Båstad, 26 October 2023

Ola Ringdahl President and CEO

Auditor's review report

Introduction

We have reviewed the interim report for Lindab International AB (publ), org nr 556606-5446, for the period 1 January 2023 to 30 September 2023. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim financial report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim financial report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act and for the parent company in accordance with the Annual Accounts Act.

Gothenburg, 26 October 2023 Deloitte AB

Harald Jagner Authorised Public Accountant

Reconciliations, key performance indicators not defined according to IFRS

The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary information for investors and the company's management as they enable the assessment of relevant trends. Lindab's definitions of these measures may differ from other companies' definitions of the same terms. These financial measures should therefore be seen as a supplement rather than as a replacement for measures defined according

to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are presented below. Reconciliation of these measures is shown in the tables below. As the amounts in the tables below have been rounded off to SEK m, the calculations do not always add up due to round-off.

Reconciliations

Amounts in SEK m unless otherwise indicated.

Return on shareholders' equity, including divested operations1)			30 Sep 2023 30 Sep 2022 31 Dec 2022
Profit for the period, rolling twelve months			830	1,024	974
Average shareholders' equity			6,928	5,901	6,180
Return on shareholders' equity, %			12.0	17.3	15.8
Return on capital employed, including divested operations1)				30 Sep 2023 30 Sep 2022 31 Dec 2022
Total assets			14,182	13,440	12,957
Provisions and deferred tax liabilities			172	164	157
Other non-current liabilities			53	43	41
Total non-current liabilities			225	207	198
Provisions			11	8	11
Accounts payable			1,168	1,305	974
Other current liabilities			1,529	1,517	1,203
Total current liabilities			2,708	2,830	2,188
Capital employed			11,249	10,403	10,571
Earnings before tax, rolling twelve months			1,014	1,321	1,238
Financial expenses, rolling twelve months			158	77	93
Total			1,172	1,398	1,331
Average capital employed			10,976	8,878	9,428
Return on capital employed, %			10.7	15.5	14.1
	2023	2022	2023	2022	2022
One-off items and restructuring costs	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Operating profit	351	358	917	1,081	1,325
Ventilation Systems	-	-3	-	-22	-22
Profile Systems	-	-	-	-	-
Other operations	-	-	-	-	-
Adjusted operating profit	351	361	917	1,103	1,347

For the period July-September one-off items and restructuring costs of SEK – m (-3) were reported. For the period January-September one-off items and restructuring costs of SEK – m (-22) were reported. For the period January – December 2022 one-off items and restructuring costs of SEK -22 m were reported. All items related to Lindab's decision to close and later divest operations in Russia.

Free cash flow	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	2022 Jan-Dec
Cash flow from operating activities	444	216	1,122	164	691
Cash flow from investing activities	-71	-355	-565	-1,259	-1,340
Free cash flow	373	-139	557	-1,095	-649
Cash flow related to acquisitions/divestments	-4	-295	-297	-995	-995
Adjusted free cash flow	377	156	854	-100	346
	2023	2022	2023	2022	2022
Adjusted operating profit and operating margin	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Adjusted operating profit	351	361	917	1,103	1,347

Operating profit	351	358	917	1,081	1,325
Net sales	3,251	3,239	9,840	9,143	12,366
Adjusted operating margin, %	10.8	11.1	9.3	12.1	10.9
Operating margin, %	10.8	11.1	9.3	11.8	10.7

Net debt		30 Sep 2023 30 Sep 2022 31 Dec 2022
Non-current interest-bearing provisions for pensions and similar obligations	200	205	217
Non-current liabilities to credit institutions	2,360	2,466	2,349
Non-current lease liabilities	1,030	849	930
Current interest-bearing liabilities	419	403	324
Total liabilities	4,009	3,923	3,820
Financial interest-bearing fixed assets	25	31	25
Other interest-bearing receivables	31	7	4
Cash and cash equivalents	619	495	481
Total assets	675	533	510
Net debt	3,334	3,390	3,310
Adjusted net debt		30 Sep 2023 30 Sep 2022 31 Dec 2022
Net debt	3,334	3,390	3,310
Liabilities related to leasing	-1,341	-1,116	-1,212
Adjusted net debt	1,993	2,274	2,098

Financial net debt2)				30 Sep 2023 30 Sep 2022 31 Dec 2022
Net debt			3,334	3,390	3,310
Liabilities related to leasing			-1,341	-1,116	-1,212
Pension related receivalbles			25	31	25
Pension related liabilities			-200	-205	-217
Financial net debt			1,818	2,100	1,906
Net debt/EBITDA, including divested operations1)				30 Sep 2023 30 Sep 2022 31 Dec 2022
Average net debt, rolling twelve months			3,437	2,474	2,851
Adjusted operating profit, rolling twelve months			1,161	1,427	1,347
Depreciation/amortisation and impairment losses, rolling twelve months,			580	453	481
excluding one-off items and restructuring costs
EBITDA, rolling twelve months			1,741	1,880	1,828
Net debt/EBITDA, times			2.0	1.3	1.6
Financial net debt/EBITDA, excluding IFRS 16 including divested operations1), 2)				30 Sep 2023 30 Sep 2022 31 Dec 2022
Average financial net debt, rolling twelve months			1,976	1,285	1,620
Adjusted operating profit, rolling twelve months			1,161	1,427	1,347
Reversal of leasing defined according to IFRS 16, rolling twelve months			-344	-275	-281
Depreciation/amortisation and impairment losses, rolling twelve			580	453	481
months, excluding one-off items and restructuring costs
EBITDA, rolling twelve months			1,397	1,605	1,547
Financial net debt/EBITDA excluding IFRS 16, times			1.4	0.8	1.0
Net debt/equity ratio				30 Sep 2023 30 Sep 2022 31 Dec 2022
Net debt			3,334	3,390	3,310
Shareholders' equity including non-controlling interests			7,240	6,480	6,751
Net debt/equity ratio			0.5	0.5	0.5
Growth	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	2022 Jan-Dec
Change Net sales	12	751	697	2,055	2,718
Of which
- Organic	-352	177	-916	1,012	1,045
- Acquisitions/divestments	145	490	1,142	799	1,303
- Currency effects	219	84	471	244	370
	2023	2022	2023	2022	2022
Growth, including divested operations1) Change Net sales	Jul-Sep 12	Jul-Sep 751	Jan-Sep 697	Jan-Sep 2,055	Jan-Dec 1,747
Of which
- Organic	-352	177	-916	1,012	1,044
- Acquisitions/divestments	145	490	1,142	799	333
- Currency effects	219	84	471	244	370
Interest coverage ratio	2023 Jul-Sep	2022 Jul-Sep	2023 Jan-Sep	2022 Jan-Sep	2022 Jan-Dec
Earnings before tax	306	335	799	1,023	1,238
Interest expenses	47	21	125	49	82
Total	353	356	924	1,072	1,320
Interest expenses	47	21	125	49	82
Interest coverage ratio, times	7.5	16.6	7.4	21.9	16.2
	2023	2022	2023	2022	2022
Operating profit before depreciation/amortisation - EBITDA	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Jan-Dec
Operating profit	351	358	917	1,081	1,325
Depreciation/amortisation and impairment losses	155	128	445	348	483
Of which one-off items and restructuring costs	-	-	-	2	2
Operating profit before depreciation/amortisation - EBITDA	506	486	1,362	1,429	1,808
	2023	2022	2023	2022	2022
Profit margin before tax Net sales	Jul-Sep 3,251	Jul-Sep 3,239	Jan-Sep 9,840	Jan-Sep 9,143	Jan-Dec 12,366
Profit before tax	306	335	799	1,023	1,238
Profit margin before tax, %	9.4	10.3	8.1	11.2	10.0

1) Key figures for periods earlier than 2022 include divested business (Building Systems), which results in that key figures for rolling 12 months in 2022 includes divested business. 2) From the third quarter 2023, this alternative key figure is included as a supplement to other financial information with the aim of further clarifying the Group's leverage.

Definitions

Key performance indicator according to IFRS

Earnings per share, SEK: Profit for the period attributable to Parent company shareholders to average number of shares outstanding, based on a rolling twelve-month calculation.

Key performance indicators not defined according to IFRS

Adjusted Free Cash Flow: Cash flow from operations and cash flow from investments, excluding company acquisitions/divestments.

Adjusted Net debt: Net debt excluding liabilities related to leasing.

Adjusted operating margin: Adjusted operating profit expressed as a percentage of net sales.

Adjusted operating profit: Operating profit adjusted for one-off items and restructuring costs when the amount is significant in size.

Cash flow from operating activities per share, SEK: Cash flow from operating activities to number of shares outstanding at the end of the period.

Continuing operations: Lindab Group excluding discontinued operations.

Discontinued operations: Business Area Building Systems, which was divested in December 2021.

Equity/asset ratio: Shareholders' equity including non-controlling interests, expressed as a percentage of total assets.

Financial net debt: Net debt excluding leasing liabilities and pension related items.

Financial net debt/EBITDA excluding IFRS 16 : Average financial net debt in relation to EBITDA, excluding IFRS 16 and excluding leasing liabilities and pension related items.

Free Cash Flow: Cash flow from operations and cash flow from investments.

Interest coverage ratio, times: Earnings before tax plus interest expense to interest expense.

Investments in intangible assets and tangible fixed assets: Investments excluding acquisitions and divestments of companies.

Net debt: Interest-bearing provisions and liabilities less interest-bearing assets and cash and cash equivalents.

Net debt/EBITDA: Average net debt in relation to EBITDA, excluding one-off items and restructuring costs, based on a rolling twelve-month calculation.

Net debt/equity ratio: Net debt to shareholders' equity including non-controlling interests.

One-off items and restructuring costs: Items not included in the ordinary business transactions and when each amount is significant in size and therefore has an effect on the profit or loss and key performance indicators, are classified as one-off items and restructuring costs.

Operating margin: Operating profit expressed as a percentage of net sales.

Operating profit: Profit before financial items and tax.

Operating profit before depreciation/amortisation - EBITDA: Operating profit before planned depreciation/amortisation.

Organic growth: Change in sales adjusted for currency effects as well as acquisitions and divestments compared with the same period of the previous year.

Profit margin: Earnings before tax expressed as a percentage of net sales.

Return on capital employed: Earnings before tax after adding back financial expenses based on a rolling twelve-month calculation, expressed as a percentage of average capital employed1). Capital employed refers to total assets less non-interest-bearing provisions and liabilities.

Return on shareholders' equity: Profit for the period attributable to Parent company shareholders based on a rolling twelve-month calculation, expressed as a percentage of average shareholders' equity1) attributable to Parent company shareholders.

Shareholders' equity per share, SEK: Shareholders' equity attributable to Parent company shareholders to number of shares outstanding at the end of the period.

Total operations: Continuing operations and discontinued operations.

1) Average capital is based on the quarterly value.

Lindab in brief

Lindab Group had sales of SEK 12,366 m in 2022. Lindab has approximately 5,000 employees in 20 countries.

Lindab is the market-leading ventilation company in Europe, specialised in air distribution and air diffusion.

In 2022, the Nordic region accounted for 53 percent, Western Europe for 34 percent, Central Europe for 12 percent and Other markets for 1 percent of total sales.

The share is listed on Nasdaq Stockholm, Large Cap, under the ticker LIAB.

Business concept

Lindab develops, manufactures, markets and distributes products for a better indoor climate and simplified construction.

Business model

Lindab's offering includes products and entire systems for energy-efficient ventilation and a healthy indoor climate. In some countries, Lindab also has an extensive range of roof, wall and rainwater systems.

The products are characterised by high quality, ease of installation, energy and environmental thinking and are delivered with a high level of service, which together gives an increased customer value.

Lindab's value chain is characterised by a good balance between centralised and decentralised functions. The distribution network has been built up with the goal of being close to the customer. Sales are made through approximately 150 own pro-shops and more than 3,000 independent retailers.

Lindab share

January - September 2023

Share price performance:	26%
Average share turnover/day:	171,262
Highest price paid (May 19):	183.00 SEK
Lowest price paid (January 2):	127.70 SEK
Closing price September 29:	160.00 SEK
Market cap September 29:	SEK 12,296 m
Total no. of shares:	78,842,820
- whereof treasury shares:	1,990,838
- whereof outstanding shares:	76,851,982

Share price performance 2022/2023, SEK

Press- and analyst meetings Calendar

A live webcast will be held at 10:00 am (CEST) on 26 October. The Interim Report will be presented by Ola Ringdahl, President and CEO, and Lars Ynner CFO.

If you wish to participate via webcast please use the link below.

https://ir.financialhearings.com/lindab-q3-report-2023

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.financialhearings.com/teleconference/?id=5004374

For more information see lindabgroup.com

Year-End Report	7 February, 2024
Interim Report January - March	3 May, 2024
Annual General Meeting	14 May, 2024
Interim Report January - June	19 July, 2024
Interim Report January - September	24 October, 2024
All financial reports will be published at
lindabgroup.com.

This information is information that Lindab International AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 07:40 am (CEST) on 26 October, 2023.

For further information, please contact:

Ola Ringdahl, President and CEO | E-mail: ola.ringdahl@lindab.com Lars Ynner, CFO | E-mail: lars.ynner@lindab.com Catharina Paulcén, Corporate Communication | E-mail: catharina.paulcen@lindab.com

Telephone +46 (0) 431 850 00 For more information, please visit lindabgroup.com.