Bravida Holding

Quarterly Report • Jul 14, 2023

We bring buildings to life

INTERIM REPORT APRIL–JUNE 2023

• Net sales increased by 14 percent to SEK 7,306 million (6,434)
• The order backlog was SEK 16,597 million (17,436)
• EBITA increased by 8 percent to SEK 407 million (376)
• The EBITA margin was 5.6 percent (5.9)
• Profit after tax was SEK 302 million (286)
• Cash flow from operating activities was SEK 134 million (62)
• Net debt amounted to SEK -2,512 million (-1,760)
• Five acquisitions were made during the quarter, adding annual sales of approximately SEK 190 million
• Basic and diluted earnings per share were SEK 1.45 (1.39) and SEK 1.45 (1.38)

April–June 2023 January–June 2023

• Net sales increased by 20 percent to SEK 14,734 million (12,260)
• EBITA increased by 16 percent to SEK 777 million (671)
• The EBITA margin was 5.3 percent (5.5)
• Profit after tax was SEK 579 million (513)
• Cash flow from operating activities was SEK 193 million (404)
• Ten acquisitions were made during the period, adding annual sales of approximately SEK 345 million
• Basic and diluted earnings per share were SEK 2.77 (2.50) and SEK 2.77 (2.50)

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Net sales	7,306	6,434	14,734	12,260	26,303	28,777
Operating profit (EBIT)	407	374	776	668	1,696	1,804
Operating margin (EBIT), %	5.6	5.8	5.3	5.5	6.4	6.3
EBITA	407	376	777	671	1,697	1,803
EBITA margin, %	5.6	5.9	5.3	5.5	6.5	6.3
Profit/loss after tax	302	286	579	513	1,283	1,349
Cash flow from operating activities	134	62	193	404	1,592	1,382
Cash conversion, %, 12 m	69	80	69	80	87	69
Net debt/EBITDA, 12 m	1.1	0.9	1.1	0.9	0.6	1.1
Order intake	7,428	6,534	14,272	13,087	25,803	26,988
Order backlog	16,597	17,436	16,597	17,436	16,881	16,597

Good revenue growth and order intake

Net sales increased by 14 percent, via both organic growth and acquisitions in all countries, while EBITA increased by 8 percent and earnings per share by 5 percent. The order backlog improved during the quarter, and in a still uncertain market my assessment is that Bravida is well positioned for the coming quarters due to its low exposure to the housing segment, a large service business and a stable order backlog.

Net sales and EBITA

I am pleased that we have continued to have good growth, with organic growth of five percent during the period. We have recorded organic growth in all countries both in this quarter and during the first half of the year. Both service and installation have contributed to the growth. Order intake increased by 14 percent, which resulted in a continued stable order backlog that increased by SEK 354 million during the quarter.

The EBITA margin was 5.6 percent for the quarter. We can note that margins have been under pressure in all countries. We have not fully succeeded in passing on increased material prices to customers, which has had a negative impact on our margins. Despite this, the Swedish business reported a slightly improved margin and Norway delivered in line with the previous year. The Danish business continued to face challenges in its project work, and project impairments in Finland also had an impact on earnings. In addition to higher material prices, the strong growth in the Danish and Norwegian project business had a negative impact on the margin during the first half of the year. As previously communicated, we have also incurred significant costs in making our business more efficient, via measures such as digitalisation and the development of new business areas. Among other things ongoing implementation of new purchasing system, project management tool, CRM system and FM system. We consider these initiatives to be important for future-proofing and further improving our profitability.

Cash flow

Cash flow from operating activities improved in the quarter and cash generation was at the same level as in the previous quarter.

We currently see somewhat more reluctance to make payments but no significant payment problems among our customers, but our monitoring of credit has increased due to the deterioration in the economy.

Acquisitions

We continue to see good opportunities to make acquisitions and are actively working with several potential candidates. In a tougher economic climate, market participants will need to sell parts of their business operations, and with its strong balance sheet Bravida can take advantage of any acquisition opportunities that may arise in the market.

Sustainability

Transitioning to a sustainable business remains one of our priority areas and we continue to have a high level of activity in making our vehicle fleet fossil-free. So far this year, over 600 electric vehicles have been put on the road to replace fossil-fuelled vehicles.

" Continued good growth in service "

Outlook

Macroeconomic factors such as high inflation, higher interest rates and a deteriorating economy continue to make the market difficult to assess going forwards. For Bravida, however, I believe that the demand for service will remain good. Demand for installation work is more influenced by the macroeconomic environment, for example high interest rates and high inflation could result in investment decisions being postponed.

There is continuing price pressure in the market. Price pressure combined with increased material and labour costs could lead to continued pressure on margins for the industry and also for Bravida. Bravida has managed both the pandemic and inflationary pressures well for a long time, but we have also lost some margin due to costs increasing too rapidly. This means Bravida's focus on margins over volume is now even more important, so we will be even stricter in our project selection, customer selection and pricing. It is also of the utmost importance that we maintain strict cost controls in all our business operations in order to be able to maintain a stable margin.

Installation volumes for new residential construction will decrease significantly this year and in the coming years. However, Bravida has a relatively low exposure, around 8 percent to new construction of housing. Installation work in new-build community properties, as well as industrial and logistics premises, is stabilising the market. The market for renovation and extension work (ROT) is expected to remain stable, with support from energy and climate adaptation measures.

The green transition and digitalisation of society are creating good business opportunities for us. Electrification, digitalisation and the need for energy efficiency in buildings are creating a demand for our services, which means Bravida is well positioned for the future.

Mattias Johansson

Stockholm, July 2023

Consolidated earnings overview

Market

The Nordic installation market outlook is being impacted by the house building volume and, according to external analysts, declined by around 7 percent in 2022. For 2023, volumes are expected to fall a further 15 percent due to high material costs, rising interest rates and an uncertain global economy. Falling residential construction is a major contributor to the decline. However, Bravida has a relatively low exposure to the residential sector, with this contributing around 8 percent of net sales in 2023. However, public investment in healthcare, defence and electrification and infrastructure is expected to remain stable.

The total volume for electrical, heating and plumbing, and ventilation installation work in the Nordic region is expected to decrease by around 9 percent in 2023/24 compared to the volume in 2022, according to external analysts. Demand for service is expected to remain stable. Positive effects are expected to result from an increased focus on sustainable investments and energy optimisation.

Net sales

April–June

Net sales increased by 14 percent to SEK 7 306 million (6,434). Organic growth was 5 percent, acquisitions boosted net sales by 6 percent and currency effects had a 2 percent impact. Net sales rose in Sweden, Denmark and Finland, with all the countries recording organic growth. Net service sales increased by 12 percent and net installation sales increased by 14 percent compared to the same quarter in the previous year. The service business accounted for 46 percent (47) of total net sales. The order intake increased by 14 percent to SEK 7,428 million (6,534). The order intake rose in Norway, Denmark and Finland.

The order backlog totalled SEK 16,597 million (17,436), a decrease of 5 percent compared to the corresponding period in 2022. The order backlog, including acquisitions, rose by SEK 354 million during the quarter. The order backlog only includes installation projects.

January–June

Net sales increased by 20 percent to SEK 14,734 million (12,260). Organic growth was 13 percent, acquisitions boosted net sales by 6 percent and currency effects had a 1 percent impact. Net sales increased in all countries and an countries reported organic growth. Net service sales increased by 20 percent and net

installation sales increased by 21 percent compared to the same period in the previous year. The service business accounted for 46 percent (47) of total net sales. The order intake rose by 9 percent to SEK 14,272 million (13 087). Order intake increased in Sweden, Denmark and Finland, but decreased in Norway. The order backlog, including acquisitions, decreased by SEK 284 million in the period.

Earnings

April–June

Operating profit was SEK 407 million (374). EBITA increased by 8 percent to SEK 407 million (376), resulting in an EBITA margin of 5.6 percent (5.9).

The EBITA margin increased in Sweden, was unchanged in Norway and decreased in the other countries. Increased costs for investments in, for example, new business areas and new digital systems, have had an impact on earnings in all countries. Group-wide income was SEK -3 million (-6). Net financial items amounted to SEK -23 million (-12). Profit after financial items was SEK 383 million (362). Profit after tax was SEK 302 million (286). Basic earnings per share increased by 5 percent to SEK 1.45 (1.39), and diluted earnings per share were SEK 1.45 (1.38).

January–June

Operating profit was SEK 776 million (668). EBITA increased by 16 percent to SEK 777 million (671), resulting in an EBITA margin of 5.3 percent (5.5). The EBITA margin increased in Sweden, was unchanged in Norway and decreased in the other countries. Increased costs for investments in, for example, new business areas and new digital systems, have had an impact on earnings in all countries. Group-wide income was SEK 4 million (-1).

Net financial items amounted to SEK -43 million (-18). Profit after financial items was SEK 734 million (650). Profit after tax was SEK 579 million (513). Basic earnings per share increased by 11 percent to SEK 2.77 (2.50) and diluted earnings were SEK 2.77 (2.50).

Net sales (SEK million)

Net sales by quarter

Net sales, rolling 12 months

Order intake by quarter

Order intake, rolling 12 months

Depreciation and amortisation

Depreciation and amortisation during the quarter totalled SEK -129 million (-114), of which SEK -117 million (-101) was related to depreciation of right-of-use assets. Depreciation and amortisation in the January–June period totalled SEK -255 million (-225), SEK -232 million (-203) of which was related to the amortisation of right-of-use assets.

Tax

The tax expense for the quarter was SEK -81 million (-77). Profit before tax was SEK 383 million (362). Tax paid totalled SEK -71 million (-145). The tax expense for the period January–June was SEK -155 million (-137). Profit before tax was SEK 734 million (650). Tax paid totalled SEK -131 million (-239).

Cash flow

April–June

Cash flow from operating activities increased to SEK 134 million (62). The higher cash flow from operating activities is explained by, among other things, a lower tax payment. Changes in working capital amounted to SEK -252 million (-264).

Cash flow from investing activities was SEK -176 million (-276), of which payments regarding acquisitions of subsidiaries and businesses decreased to SEK -142 million (-246). Cash flow from financing activities amounted to SEK -161 million (140), with the change being explained by, among other things, a higher dividend and lower new borrowing. Cash flow for the quarter was SEK -203 million (-74). 12-month cash conversion was 69 percent (80).

January–June

Cash flow from operating activities decreased to SEK 193 million (404). The lower cash flow from operating activities is explained by, among other things, a decrease in working capital, while the lower tax payment had a positive impact on cash flow. Changes in working capital amounted to SEK -588 million (-224).

Cash flow from investing activities was SEK -333 million (-429), of which payments regarding acquisitions of subsidiaries and businesses decreased to SEK -275 million (-370). Cash flow from financing activities amounted to SEK -217 million (-509), with the change being explained by, among other things, a higher dividend and increased borrowing. Cash flow for the period was SEK -356 million (-534).

Financial position

Net debt on 30 June amounted to SEK -2,512 million (-1,760), which corresponds to a capital-structure ratio (net debt/EBITDA) of 1.1 (0.9). Consolidated cash and cash equivalents were SEK 879 million (1,067).

Interest-bearing liabilities totalled SEK 3,391 million (-2,826), of which SEK -1,539 million (-807) were commercial paper and SEK -1,152 million (-919) were leases. Total credit facilities amounted to SEK 2,500 million (2,500), of which SEK 2,300 million (1,900) was unused at 30 June. At the end of the period, equity totalled SEK 7,890 million (6,938). The equity/assets ratio was 33.5 percent (33.9).

Acquisitions

Five acquisitions were completed in the quarter, adding annual sales of approximately SEK 190 million.

Ten acquisitions were completed in the period January – June,adding annual sales of approximately SEK 345 million. For further information, see Note 3.

Employees

The average number of employees at 30 June was 13,741 (12,245), an increase of 12 percent.

Parent company

Revenues for the quarter were SEK 71 million (57) and earnings after net financial items were SEK -31 million (-1). Revenues for the January–June period were SEK 130 million (108) and earnings after net financial items were SEK -44 million (3).

Shareholder information

Bravida Holding AB's ordinary shares are listed on the Nasdaq Stockholm Large Cap list. The five largest shareholders were Mawer Investment Management, Swedbank Robur Funds, the Fourth Swedish National Pension Fund (AP4), Handelsbanken Funds and Didner & Gerge Funds.

Mawer Investment Management's holding amounted to just under 11 percent of the votes.

The price of the ordinary share on 30 June was SEK 103.60, which corresponds to a market capitalisation of SEK 21,147 million based on the number of ordinary shares. Total shareholder return over the past 12 months was 20 percent. The share capital totals SEK 4 million, divided among 204,916,598 shares, of which 204,122,271 are ordinary shares and 794,327 are class C shares, which are held by Bravida Holding AB. Ordinary shares entitle holders to one vote and a dividend payment, while C shares entitle holders to one-tenth of a vote and no dividend.

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–June 2023	Jan–June 2022	Jan–Dec 2022
Net sales	7,306	6,434	14,734	12,260	26,303
Change	871	865	2,474	1,457	4,427
Total growth, %	13.5	15.5	20.2	13.5	20.2
Of which
Organic growth, %	5	8	13	6	11
Acquisition-based growth, %	6	6	6	5	7
Currency effects, %	2	2	1	2	2

Net sales and growth

Significant risks

Changes in market conditions, financial turmoil and political decisions are the external factors that mainly affect demand for new construction of housing and commercial property, as well as investment from industry and the public sector. Demand for service and maintenance is less sensitive to economic fluctuations. Operating risks are related to day-to-day business operations such as tendering, price risks, capacity utilisation and revenue recognition. Management of these risks is part of Bravida's business process. Recognition over time is applied and is based on the extent of completion of each project and the expected date of completion. A well-developed process for the monitoring of projects is essential for limiting the risk of incorrect revenue recognition. Bravida continually monitors the financial status of each project to ensure that individual project calculations are not exceeded. The Group is also exposed to impairment loss risks in fixed-price contracts and various types of financial risk such as currency, interest rate and credit risk.

Developments in Ukraine remain in focus with regard to the international situation. In addition to the tragedy of the war for the people affected, the situation risks dampening macroeconomic growth in the rest of the world. For Bravida, the industry may be affected by increased uncertainty and caution regarding investments, as well as continued high prices for materials and energy. Bravida has no direct exposure to Ukraine or Russia in terms of sales or purchases. We are closely monitoring developments in order to be able to continuously assess possible indirect impacts.

Transactions with related parties

No transactions with related parties outside the Group took place during the period.

Other events during the period

The Annual General Meeting (AGM) held on 28 April resolved, in accordance with the Nomination Committee's proposal, to re-elect Fredrik Arp, Cecilia Daun Wennborg, Jan Johansson, Marie Nygren, Staffan Påhlsson and Karin Stålhandske as members of the Board for the period until the end of the next Annual General Meeting.

The AGM agreed to the Board's proposals:

• To adopt the proposed dividend of SEK 3.25 per share • To adopt a long-term incentive programme aimed at senior
• executives and other key personnel in the Bravida Group • To authorise the Board to take decisions regarding a new issue
• of class C shares
• To authorise the Board to take decisions regarding the buyback of class C shares and the transfer of treasury shares

In April, the Board decided to convert 400,000 class C shares into ordinary shares for delivery to participants in the long-term incentive programme 2020.

Events since the end of the period

Bravida has signed an agreement to acquire a company in Denmark with operations in Energy Optimisation and sales of approximately SEK 35 million.

Financial and sustainability targets

Financial targets	Outcome 30/06/2023	Outcome 30/06/2022	Outcome 31/12/2022	Target
Sales growth, 12 m	23%	10%	20%	>5%
EBITA margin, 12 m	6.3%	6.8%	6.5%	> 7%
Cash conversion, 12 m	69%	80%	87%	> 100%
Net debt/EBITDA, 12 m	1.1 times	0.9 times	0.6 times	< 2.5 times
Dividend	52%	53%	53%	> 50%

Sustainability targets	Outcome 30/06/2023	Outcome 30/06/2022	Outcome 31/12/2022	Target
LTIFR, 12 months	7.3	7.4	6.8	< 5.5 target 2023
Change in CO2e emissions, vehicles 1), 12 months	3.5%	2.1%	3.6%	30% reduction by 2025 (compared to 2020)
Tonnes of CO2e vehicles/net sales, 12 months	0.82	0.96	0.86	n/a
Electric vehicles ordered 2) of total vehicles ordered during the year	46%	65%	73%	KPI to ensure target achievement CO2e emissions

1) Accounts for the most significant part of Bravida's total CO2e emissions according to scopes 1 & 2. 2) Fully electric vehicles.

Reported occupational injuries that led to at least one day of sickness absence decreased by 2 percent over the past 12 months to an LTIFR of 7.3 (7.4). LTIFR was 6.7 (6.5) in Sweden, 2.1 (3.5) in Norway, 12.9 (11.4) in Denmark and 11.6 (16.1) in Finland.

Bravida Sweden placed a large order for electric vehicles in 2022 before the abolition of the environmental bonus, which has meant that the need for new electric vehicles in 2023 is partly covered by call offs made from the order placed in November 2022. This means that the figure for electric vehicles ordered during the quarter is lower than before.

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

EBITA margin, %

2106 2109 2112 2203 2206 2209 2212 2303 2306

EBITA margin per quarter

EBITA margin, rolling 12 months

Cash flow from operating activities (SEK million)

2106 2109 2112 2203 2206 2209 2212 2303 2306

• Cash flow from operating activities by quarter
• Cash flow from operating activities, rolling 12 months

Operations in Sweden

Net sales and earnings

April–June

Net sales rose by 12 percent to SEK 3,690 million (3,307). The increase in net sales was attributable to both service and installation activities. The service area increased its share of sales and accounted for 50 percent (49) of total net sales. Organic growth was 5 percent, with acquisitions increasing net sales by 7 percent. EBITA rose by 15 percent to SEK 248 million (216). The EBITA margin increased to 6.7 percent (6.5).

January–June

Net sales rose by 16 percent to SEK 7,314 million (6,296). The increase in net sales was attributable to both service and installation activities. The service area accounted for 50 percent (49) of total net sales. Organic growth was 10 percent, with acquisitions increasing net sales by 6 percent. EBITA increased by 17 percent to SEK 446 million (379). The EBITA margin was 6.1 percent (6.0).

Order intake and order backlog April–June

The order intake decreased by 6 percent to SEK 3,305 million (3,528). The order intake relates to small and medium-sized installation projects and service assignments. The order backlog at the end of the quarter was 8 percent lower than for the same period in the previous year and amounted to SEK 8,736 million (9,468). The order backlog decreased by SEK 384 million during the quarter.

January–June

The order intake rose by 8 percent to SEK 7,005 million (6,487).

Net sales (SEK million)

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

Operations in Sweden

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Net sales	3,690	3,307	7,314	6,296	13,040	14,058
EBITA	248	216	446	379	1,017	1,083
EBITA margin, %	6.7	6.5	6.1	6.0	7.8	7.7
Order intake	3,305	3,528	7,005	6,487	12,756	13,274
Order backlog	8,736	9,468	8,736	9,468	9,045	8,736
Average number of employees	6,488	5,723	6,488	5,723	6,098	6,863

Multi-year service agreement with Alstom for technical facility management services In the spring, Bravida signed an agreement with Alstom, the largest provider in the Swedish railway market with over 1,000 trains delivered.

The agreement includes the provision of technical service for offices, depots and production sites throughout Sweden. Bravida will provide technical FM services such as inspections, technical care, corrective maintenance and readiness regarding technical installations. The assignment started on 1 March 2023 and will run for three years.

Operations in Norway

Net sales and earnings

April–June

Net sales fell 1 percent to SEK 1,330 million (1,345). Net sales increased by 5 percent in local currency. Net service sales increased, with service accounting for 52 (50) percent of total net sales.

Organic growth was 4 percent, with acquisitions increasing net sales by 1 percent. EBITA decreased by 1 percent to SEK 75million (76). The EBITA margin was unchanged at 5.7 percent.

January–June

Net sales increased by 12 percent to SEK 2,917 million (2,616). Net sales increased in both the installation and service business areas during the period. Service accounted for 51 (51) percent of total net sales. Organic growth was 15 percent, with acquisitions increasing net sales by 2 percent. EBITA rose by 12 percent to SEK 152 million (136). The EBITA margin was unchanged at 5.2 percent.

Order intake and order backlog April–June

The order intake increased by 6 percent to SEK 1,188 million (1,124). The order intake relates to small and medium-sized installation projects and service assignments. The order backlog at the end of the quarter was 26 percent lower than for the same period in the previous year and amounted to SEK 2,820 million (3,806). The order backlog decreased by SEK 107 million during the quarter.

January–June

Order intake decreased by 10 percent to SEK 2,464 million (2,727).

Net sales (SEK million)

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

Operations in Norway

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Net sales	1,330	1,345	2,917	2,616	5,555	5,856
EBITA	75	76	152	136	283	299
EBITA margin, %	5.7	5.7	5.2	5.2	5.1	5.1
Order intake	1,188	1,124	2,464	2,727	5,179	4,916
Order backlog	2,820	3,806	2,820	3,806	3,431	2,820
Average number of employees	3,144	2,997	3,144	2,997	3,165	3,312

Oslobygg KF chooses Bravida again for Fire & Security services

In May, Bravida's Fire & Security branch in Oslo was awarded another contract by one of Norway's largest property companies, Oslobygg KF. The award decision strongly emphasises that Bravida was given the contract because of its focus on quality and the environment.

The framework agreement covers the reviewing and management of fire alarms, voice alarms and emergency and management systems. Bravida already has a contract with Oslobygg KF for the maintenance of fire alarms, voice alarms and emergency and management systems. The contract is worth NOK 60 million and will run for four years.

Operations in Denmark

Net sales and earnings

April–June

Net sales increased by 26 percent to SEK 1 747 million (1,390). Net sales increased for both the service and installation businesses during the quarter. The share of service sales decreased and accounted for 38 (40) percent of total net sales.

Organic growth was 6 percent, with acquisitions increasing net sales by 9 percent. EBITA increased by 2 percent to SEK 71 million (69), while the EBITA margin decreased to 4.0 percent (5.0), the margin has been negatively affected by project impairment losses.

January–June

Net sales increased by 33 percent to SEK 3,429 million (2,578). The increase in net sales was attributable to both service and installation activities. The share of service sales decreased and accounted for 39 (41) percent of total net sales. Organic growth was 13 percent, with acquisitions increasing net sales by 10 percent. EBITA increased by 14 percent to SEK 139 million (121), while the EBITA margin decreased to 4.0 percent (4.7), with the margin being impacted negatively by impairments in projects.

Order intake and order backlog April–June

The order intake increased by 72 percent to SEK 2,319 million (1,348). A large order for sprinkler installations was received in the quarter, with an order value of approximately SEK 230 million. Order intake mainly relates to small and medium-sized installation projects and service assignments. The order backlog at the end of the quarter was 13 percent higher than for the same period in the previous year and amounted to SEK 3 672 million (3,244). The order backlog rose by SEK 706 million during the quarter.

January–June

The order intake increased by 22 percent to SEK 3,661 million (3,009).

Net sales (SEK million)

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

Operations in Denmark

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Net sales	1,747	1,390	3,429	2,578	6,038	6,889
EBITA	71	69	139	121	308	325
EBITA margin, %	4.0	5.0	4.0	4.7	5.1	4.7
Order intake	2,319	1,348	3,661	3,009	5,930	6,582
Order backlog	3,672	3,244	3,672	3,244	3,229	3,672
Average number of employees	3,115	2,642	3,115	2,642	2,908	3,381

Bravida Denmark to perform installation work for new DSB workshop for electric trains In June, Bravida Denmark signed an agreement as a subcontractor of M.J. Eriksson A/S. The deliverables include responsibility for the supply of electricity and lighting at DSB's new workshop for future electric trains in the Logistics Park in Brabrand, outside Aarhus. One of the requests is that the construction work is as sustainable as possible and achieves gold certification pursuant to the DGNB certification system.

The project will start in mid-2023 and the total order value is approximately DKK 114 million.

Operations in Finland

Net sales and earnings

April–June

Net sales increased by 33 percent to SEK 553 million (415). The increase in net sales was attributable to both service and installation activities. The share of service sales decreased and accounted for 31 (32) percent of total net sales. Organic growth was 8 percent, with acquisitions increasing net sales by 14 percent. EBITA decreased by 21 percent to SEK 16 million (21). The EBITA margin decreased to 3.0 percent (5.0). Earnings were negatively affected by impairments in some installation projects.

January–June

Net sales increased by 35 percent to SEK 1,107 million (823). The increase in net sales was attributable to both service and installation activities. The share of service sales increased and accounted for 31 percent (30) of total net sales. Organic growth was 14 percent, with acquisitions increasing net sales by 11 percent. EBITA rose by 3 percent to SEK 37 million (36). The EBITA margin decreased to 3.3 percent (4.3), due to a lower margin for installation activities.

Order intake and order backlog April–June

The order intake rose by 13 percent to SEK 631 million (558). The order intake relates to small and medium-sized installation projects and service assignments. The order backlog at the end of the quarter was 49 percent higher than for the same period in the previous year and amounted to SEK 1,369 million (919). The order backlog rose by SEK 140 million during the quarter.

January–June

The order intake rose by 28 percent to SEK 1,175 million (918).

Net sales (SEK million)

2106 2109 2112 2203 2206 2209 2212 2303 2306

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

Operations in Finland

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Net sales	553	415	1,107	823	1,812	2,097
EBITA	16	21	37	36	96	97
EBITA margin, %	3.0	5.0	3.3	4.3	5.3	4.6
Order intake	631	558	1,175	918	2,081	2,337
Order backlog	1,369	919	1,369	919	1,177	1,369
Average number of employees	820	728	820	728	752	845

Bravida Finland – technical advisor for carbon neutral business park in Vaasa, Finland

Bravida has had an ongoing service agreement with the property investment company Kvadraten AB in Vaasa since 2016. Pursuant to the agreement, Bravida delivers a comprehensive service package ranging from design and implementation to ongoing maintenance of electricity, heating and plumbing, ventilation, cooling and sprinkler systems. Kvadraten AB has benefited greatly from Bravida's wide range of technical building systems and energy optimisation solutions.

Kvadraten AB is now working on the development of the carbon neutral Circle's Edge business park, with Bravida assisting as technical advisor, designer and main contractor. The agreement with Kvadraten AB continues throughout the year and Circle's Edge phase 1 is expected to be completed by the end of 2023.

EBITA, rolling 12 months

Financial reporting

Consolidated income statement, summary

Amounts in SEK million	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Net sales	7,306	6,434	14,734	12,260	26,303	28,777
Production costs	-6,228	-5,488	-12,644	-10,502	-22,335	-24,476
Gross profit/loss	1,078	946	2,091	1,758	3,968	4,301
Sales costs and administrative expenses	-671	-572	-1,314	-1,089	-2,272	-2,497
Operating profit/loss	407	374	776	668	1,696	1,804
Net financial items	-23	-12	-43	-18	-64	-89
Profit/loss before tax	383	362	734	650	1,632	1,716
Tax	-81	-77	-155	-137	-349	-367
Profit/loss for the period	302	286	579	513	1,283	1,349
Profit/loss for the period attributable to:
Owners of the parent company	296	282	564	509	1,267	1,323
Non-controlling interests	6	4	14	4	16	26
Profit/loss for the period	302	286	579	513	1,283	1,349
Basic earnings per share, SEK	1.45	1.39	2.77	2.50	6.22	6.48
Diluted earnings per share, SEK	1.45	1.38	2.77	2.50	6.21	6.47

Consolidated statement of comprehensive income, summary

Amounts in SEK MILLION	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Profit/loss for the period	302	286	579	513	1,283	1,349
Other comprehensive income
Items that have been or can be transferred to profit/loss for the year
Translation differences for the period from the translation of foreign operations	50	3	8	64	142	86
Items that cannot be transferred to profit/loss for the year
Revaluation of defined-benefit pensions	–	221	–	221	409	188
Tax attributable to the revaluation of pensions	–	-47	–	-47	-84	-37
Other comprehensive income for the period	50	177	8	237	467	237
Comprehensive income for the period	352	462	586	750	1,750	1,586
Comprehensive income for the period attributable to:
Owners of the parent company	346	459	572	746	1,734	1,560
Non-controlling interests	6	4	14	4	16	26
Comprehensive income for the period	352	462	586	750	1,750	1,586

Consolidated balance sheet, summary

Amounts in SEK MILLION	30/06/2023	30/06/2022	31/12/2022
Goodwill	10,704	9,930	10,439
Right-of-use assets	1,130	897	1,028
Other non-current assets	450	317	393
Total non-current assets	12,284	11,144	11,860
Trade receivables	5,789	4,498	5,210
Contract assets	3,727	3,038	3,225
Other current assets	858	731	867
Cash and cash equivalents	879	1,067	1,308
Total current assets	11,254	9,334	10,611
Total assets	23,538	20,478	22,472
Equity attributable to owners of the parent company	7,851	6,911	7,895
Non-controlling interests	38	27	40
Total equity	7,890	6,938	7,936
Non-current liabilities	1,669	1,026	1,679
Lease liabilities	746	582	666
Total non-current liabilities	2,414	1,608	2,345
Lease liabilities	406	337	384
Trade payables	2,821	2,462	3,259
Contract liabilities	4,485	3,824	3,938
Other current liabilities	5,521	5,308	4,610
Total current liabilities	13,233	11,931	12,191
Total liabilities	15,648	13,540	14,536
Total equity and liabilities	23,538	20,478	22,472
Of which interest-bearing liabilities	3,391	2,826	2,613

Changes in equity

Amounts in SEK million	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022
Consolidated equity
Amount at start of period	7,936	6,832	6,832
Comprehensive income for the period	586	750	1,750
Non-controlling interests' put option	14	-48	-73
Dividend	-662	-610	-610
Long-term incentive programme	16	14	37
Amount at end of period	7,890	6,938	7,936

Consolidated cash flow statement, summary

Amounts in SEK MILLION	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022	Jul 2022 – Jun 2023
Cash flow from operating activities
Profit/loss before tax	383	362	734	650	1,632	1,716
Adjustments for non-cash items	73	109	179	217	660	622
Income taxes paid	-71	-145	-131	-239	-359	-251
Cash flow from operating activities before changes in working capital	385	326	782	628	1,933	2,087
Cash flow from changes in working capital
Change in inventories	-5	-27	-2	-28	-70	-44
Change in trade receivables and other operating receivables	-465	-868	-860	-735	-1,364	-1,489
Change in trade payables and other operating liabilities	219	631	274	539	1,093	828
Cash flow from operating activities	134	62	193	404	1,592	1,382
Investing activities
Acquisitions of subsidiaries and businesses	-142	-246	-275	-370	-675	-581
Other	-35	-30	-57	-59	-142	-140
Cash flow from investing activities	-176	-276	-333	-429	-817	-721
Financing activities
Dividends received	–	–	1	–	–	1
Net change in borrowing	618	850	676	304	-42	330
Repayment of lease liabilities	-117	-101	-232	-202	-426	-456
Dividend paid	-662	-610	-662	-610	-610	-662
Cash flow from financing activities	-161	140	-217	-509	-1,078	-786
Cash flow for the period	-203	-74	-356	-534	-304	-126
Cash and cash equivalents at start of period	1,095	1,186	1,308	1,594	1,594	1,067
Translation difference on cash and cash equivalents	-14	-44	-74	7	18	-62
Cash and cash equivalents at end of period	879	1,067	879	1,067	1,308	879

Parent company income statement, summary

Amounts in SEK MILLION			Apr–Jun 2023 Apr–Jun 2022 Jan–Jun 2023 Jan–Jun 2022 Jan–Dec 2022
Net sales	71	57	130	108	232
Sales costs and administrative expenses	-79	-58	-124	-104	-238
Operating profit/loss	-8	-1	6	4	-6
Net financial items	-24	1	-51	-1	-30
Profit/loss after net financial items	-31	-1	-44	3	-36
Net Group contributions	0	–	0	–	543
Appropriations	–	–	–	–	-15
Profit/loss before tax	-32	-1	-45	3	492
Tax	0	–	0	–	-105
Profit/loss for the period	-32	-1	-45	3	386

Parent company balance sheet, summary

Amounts in SEK MILLION	30/06/2023	30/06/2022	31/12/2022
Shares in subsidiaries	7,341	7,341	7,341
Non-current receivables	2	1	1
Deferred tax asset	0	0	0
Total non-current assets	7,343	7,343	7,343
Receivables from Group companies	2,019	1,499	2,290
Current receivables	111	75	21
Total current receivables	2,131	1,574	2,310
Cash and bank balances	618	812	1,055
Total current assets	2,749	2,387	3,366
Total assets	10,092	9,731	10,709
Restricted equity	4	4	4
Non-restricted equity	3,298	3,582	3,989
Equity	3,302	3,586	3,993
Untaxed reserves	687	672	687
Liabilities to credit institutions	500	–	500
Provisions	5	4	4
Total non-current liabilities	505	4	504
Short-term loans	1,739	1,907	1,063
Liabilities to Group companies	3,816	3,523	4,406
Current liabilities	44	38	56
Total current liabilities	5,598	5,467	5,525
Total equity and liabilities	10,092	9,730	10,709
Of which interest-bearing liabilities	2,239	1,907	1,563

Quarterly data

INCOME STATEMENT	Apr–Jun 2023	Jan–Mar 2023	Oct–Dec 2022	Jul–Sep 2022	Apr–Jun 2022	Jan–Mar 2022	Oct–Dec 2021	Jul–Sep 2021
Net sales	7,306	7,429	7,945	6,097	6,434	5,826	6,218	4,854
Production costs	-6,228	-6,416	-6,618	-5,215	-5,488	-5,014	-5,112	-4,161
Gross profit/loss	1,078	1,013	1,328	882	946	812	1,106	694
Sales costs and administrative expenses	-671	-643	-656	-527	-572	-517	-480	-401
Operating profit/loss	407	370	672	356	374	295	626	293
Net financial items	-23	-19	-32	-14	-12	-7	-19	-13
Profit/loss after financial items	383	350	640	342	362	288	608	280
Tax	-81	-74	-139	-72	-77	-61	-139	-59
Profit/loss for the period	302	276	501	270	286	227	468	221
BALANCE SHEET	30/06/2023 31/03/2023			31/12/2022 30/09/2022 30/06/2022		31/03/2022		31/12/2021 30/09/2021
Goodwill	10,704	10,488	10,439	10,287	9,930	9,707	9,530	9,291
Other non-current assets	1,580	1,450	1,421	1,348	1,214	1,228	1,222	1,175
Current assets	10,375	9,711	9,303	9,208	8,267	7,152	7,169	6,788
Cash and cash equivalents	879	1,095	1,308	1,080	1,067	1,186	1,594	973
Total assets	23,538	22,744	22,472	21,924	20,478	19,273	19,516	18,227
Equity	7,890	8,180	7,936	7,260	6,938	7,079	6,832	6,236
Borrowings	500	500	500	500	500	500	500	500
Non-current liabilities	1,914	1,861	1,845	1,734	1,608	1,851	1,797	1,336
Current
liabilities	13,233	12,203	12,191	12,430	11,431	9,843	10,387	10,155
Total equity and liabilities	23,538	22,744	22,472	21,924	20,478	19,273	19,516	18,227
	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep
CASH FLOW	2023	2023	2022	2022	2022	2022	2021	2021
Cash flow from operating activities	134	60	1,110	78	62	341	1,115	-139
Cash flow from investing activities	-176	-157	-130	-259	-276	-153	-121	-98
Cash flow from financing activities	-161	-56	-761	192	140	-648	-399	-97
Cash flow for the period	-203	-153	219	11	-74	-460	595	-335
KEY RATIOS	Apr–Jun 2023	Jan–Mar 2023	Oct–Dec 2022	Jul–Sep 2022	Apr–Jun 2022	Jan–Mar 2022	Oct–Dec 2021	Jul–Sep 2021
Operating margin (EBIT), %	5.6	5.0	8.5	5.8	5.8	5.1	10.1	6.0
EBITA margin, %	5.6	5.0	8.4	5.9	5.9	5.1	10.1	6.1
Return on equity, %	16.8	16.5	16.9	17.6	17.1	16.7	17.4	16.7
Net debt	-2,512	-1,588	-1,304	-2,144	-1,760	-829	-1,003	-1,906
Net debt/EBITDA	1.1	0.7	0.6	1.0	0.9	0.4	0.5	1.1
Cash conversion, %	69	70	87	88	80	92	83	80
Interest coverage, multiple	11.4	14.7	24.4	20.5	28.9	31.5	44.5	23.5
Equity/assets ratio, %	33.5	36.0	35.3	33.1	33.9	36.7	35.0	34.2
Order intake	7,428	6,844	6,816	5,900	6,534	6,553	7,251	5,212
Order backlog	16,597	16,243	16,881	17,895	17,436	17,334	16,519	15,269
Average number of employees	13,741	13,471	13,078	12,864	12,245	11,877	11,864	11,817
Administrative expenses as % of sales	9.2	8.7	8.3	8.6	8,9	8,9	7.7	8.3
Operating capital as % of sales	-1.3	-2.1	-3.8	-3.5	-4.9	-6.7	-6.7	-4.4
Basic earnings per share, SEK	1.45	1.32	2.43	1.29	1.39	1.12	2.32	1.09
Diluted earnings per share, SEK	1.45	1.32	2.42	1.29	1.38	1.11	2.31	1.09
Equity per share, SEK	38.46	39.92	38.76	35.47	33.93	34,69	33.52	30.60
Share price at balance sheet date, SEK	103.60	116.80	111.40	91.70	89.10	108.50	127.00	118.40

Reconciliation of key indicators, not defined under IFRS

The company presents certain financial measures in this quarterly report that are not defined under IFRS. The company considers that these indicators provide valuable additional information for investors and the company's management as they allow relevant trends to be assessed. Bravida's definitions of these indicators may differ from other companies' definitions of the same terms. These financial measures should therefore be regarded as complementary rather than replacing the measures defined under IFRS. See page 21 for definitions of key performance indicators.

Reconciliation of key performance measures, not defined under IFRS

Amounts in SEK million	Jan–Jun 2023	Jan–Mar 2023	Oct–Dec 2022	Jul–Sep 2022	Apr–Jun 2022	Jan–Mar 2022	Oct–Dec 2021	Jul–Sep 2021
Interest-bearing liabilities
Long-term loans	-500	-500	-500	-500	-500	-500	-500	-500
Short-term loans	-1,739	-1,121	-1,063	-1,710	-1,407	-557	-1,103	-1,400
Lease liability	-1,152	-1,062	-1,050	-1,014	-919	-958	-994	-979
Total interest-bearing liabilities	-3,391	-2,683	-2,613	-3,224	-2,826	-2,014	-2,597	-2,879
Net debt
Interest-bearing liabilities	-3,391	-2,683	-2,613	-3,224	-2,826	-2,014	-2,597	-2,879
Cash and cash equivalents	879	1,095	1,308	1,080	1,067	1,186	1,594	973
Total net debt	-2,512	-1,588	-1,304	-2,144	-1,760	-829	-1,003	-1,906
EBITA
Operating profit, EBIT	407	370	672	356	374	295	626	293
Amortisation and impairment of
non-current intangible assets	0	0	-3	1	3	0	-1	1
EBITA	407	370	669	357	376	295	625	294
EBITDA
Operating profit, EBIT	407	370	672	356	374	295	626	293
Depreciation and impairment	129	126	122	122	114	111	110	107
EBITDA	536	495	794	477	488	406	736	400
Working capital
Current assets	11,254	10,807	10,611	10,288	9,334	8,339	8,764	7,761
Cash and cash equivalents	-879	-1,095	-1,308	-1,080	-1,067	-1,186	-1,594	-973
Current
liabilities	-13,233	-12,203	-12,191	-12,430	-11,931	-10,343	-10,887	-10,155
Lease, current liability	406	386	384	359	337	350	356	333
Short-term loans	1,739	1,121	1,063	1,710	1,907	1,057	1,603	1,900
Provisions	333	394	434	282	275	282	287	199
Total working capital	-380	-591	-1,007	-870	-1,145	-1,503	-1,471	-935
Interest coverage ratio
Profit/loss before tax	383	350	640	342	362	288	608	280
Interest expenses Total	37 420	26 376	27 667	18 360	13 375	9 297	14 622	12 293
Interest expenses	37	26	27	18	13	9	14	12
Interest coverage, multiple	11.4	14.7	24.4	20.5	28.9	31.5	44.5	23.5
Cash conversion
Cash flow from operating activities, 12
months	1,382	1,310	1,592	1,597	1,380	1,635	1,437	1,195
Income taxes paid	251	326	359	339	332	239	210	232
Net interest income	89	77	64	51	50	53	56	65
Investments in machinery and equipment	-141	-136	-142	-141	-128	-111	-88	-52
Adjusted cash flow from operating
activities, 12 months	1,581	1,577	1,874	1,846	1,633	1,816	1,615	1,440
EBITDA, 12 months	2,303	2,254	2,165	2,107	2,030	1,978	1,944	1,807
Cash conversion, %	69	70	87	88	80	92	83	80

Notes

NOTE 1. Accounting policies

This is a translation of the Swedish Interim Report of Bravida Holding AB. In the event of inconsistency between the English and the Swedish versions, the Swedish version shall prevail.

This interim report for the Group has been prepared in accordance with International Reporting Standards (IFRS) using IAS 34 Interim Reporting. The parent company applies Recommendation RFR 2 Accounting for Legal Entities and Chapter 9 of the Swedish Annual Accounts Act regarding interim reports.

The accounting policies applied are consistent with what is set out in the 2022 Annual Report.

The IASB has published supplements to standards that apply from 1 January 2023 or later. Such supplements have not had any material impact on Bravida's financial statements.

All amounts in this interim report are stated in millions of Swedish kronor (SEK), unless specified otherwise, and rounding differences may therefore occur.

NOTE 2. Segment reporting and revenue distribution

Net sales by country

Amounts in SEK million	Apr–Jun 2023	Distri bution	Apr–Jun 2022	Distri bution	Jan–Jun 2023	Distri bution	Jan–Jun 2022	Distri bution	Jan–Dec 2022	Distri bution
Sweden	3,690	51%	3,307	51%	7,314	50%	6,296	51%	13,040	49%
Norway	1,330	18%	1,345	21%	2,917	20%	2,616	21%	5,555	21%
Denmark	1,747	24%	1,390	22%	3,429	23%	2,578	21%	6,038	23%
Finland	553	7%	415	6%	1,107	7%	823	7%	1,812	7%
Group-wide and eliminations	-14		-23		-32		-53		-142
Total	7,306		6,434		14,734		12,260		26,303

EBITA, EBITA margin and profit/loss before tax

Amounts in SEK million	Apr–Jun 2023	EBITA margin	Apr–Jun 2022	EBITA margin	Jan–Jun 2023	EBITA margin	Jan–Jun 2022	EBITA margin	Jan–Dec 2022	EBITA margin
Sweden	248	6.7%	216	6.5%	446	6.1%	379	6.0%	1,017	7.8%
Norway	75	5.7%	76	5.7%	152	5.2%	136	5.2%	283	5.1%
Denmark	71	4.0%	69	5.0%	139	4.0%	121	4.7%	308	5.1%
Finland	16	3.0%	21	5.0%	37	3.3%	36	4.3%	96	5.3%
Group-wide	-3		-6		4		-1		-6
EBITA	407	5.6%	376	5.9%	777	5.3%	671	5.5%	1,697	6.5%
Depreciation and amortisation of intangible assets	0		-3		-1		-3		-1
Net financial items	-23		-12		-43		-18		-64
Profit/loss before tax (EBT)	383		362		734		650		1,632

NOTE 2. Segment reporting and revenue distribution, cont.

Distribution of revenues by category

	Apr–Jun 2023			Apr–Jun 2022
Amounts in SEK million	Service	Installation	Total	Service	Installation	Total
Sweden	1,850	1,839	3,690	1,626	1,681	3,307
Norway	690	640	1,330	673	672	1,345
Denmark	659	1,088	1,747	562	828	1,390
Finland	171	382	553	135	280	415
Eliminations	-4	-10	-14	-3	-20	-23
Group	3,366	3,939	7,306	2,993	3,442	6,434

		Jan–Jun 2023		Jan–Jun 2022
Amounts in SEK million	Service	Installation	Total	Service	Installation	Total
Sweden	3,680	3,634	7,314	3,073	3,223	6,296
Norway	1,478	1,439	2,917	1,329	1,287	2,616
Denmark	1,343	2,086	3,429	1,066	1,512	2,578
Finland	340	767	1,107	244	579	823
Eliminations	-8	-24	-32	-4	-49	-53
Group	6,832	7,902	14,734	5,708	6,552	12,260

Average number of employees	Jan–Jun 2023	Jan–Jun 2022	Jan–Dec 2022
Sweden	6,488	5,723	6,098
Norway	3,144	2,997	3,165
Denmark	3,115	2,642	2,908
Finland	820	728	752
Group-wide	174	155	155
Total	13,741	12,245	13,078

NOTE 3. Acquisition of operations

Bravida made the following acquisitions in January – June:

Acquired business	Country	Technical area	Type	Date	Percentage	of votes Employees	Estimated annual sales, million SEK
LVI-Press Oy	Finland	Heating & plumbing	Company	January	100%	20	40
Wikblom Hydraulik och Rörteknik AB	Sweden	Heating & plumbing	Company	January	100%	20	40
Viste & Sømme AS	Norway	Security	Company	February	100%	12	23
Nordic Montage Team	Sweden	Heating & plumbing	Assets and liabilities	February	–	9	12
Låscenter i Västerås AB	Sweden	Security	Company	March	100%	17	40
Hornbæk El-forretning A/S	Denmark	Electrics	Assets and liabilities	April	–	25	38
Turun LaatuSähkö Oy	Finland	Electrics	Assets and liabilities	May	–	12	20
SCAN-EL A/S	Denmark	Electrics	Assets and liabilities	May	–	31	50
Hämeen Kiinteistöautomaatio Oy	Finland	Automation	Company	May	100%	17	30
Bäckmans Rör AB	Sweden	Heating & plumbing	Company	June	100%	26	52

Effects of acquisitions in 2023

Bravida normally uses an acquisition structure with a fixed purchase price and contingent consideration. The contingent consideration is initially valued at the likely final amount, which for the year's acquisitions is SEK 35 million. The contingent considerations are due for payment within three to five years. The acquisitions are reported in aggregate form in the table below as individually they are not of sufficient size to justify separate recognition of each acquisition.

The acquisition analyses of acquired companies in 2023 are preliminary.

Acquisitions after the end of the reporting period

In July, an agreement was signed in Denmark to acquire OETekniq Aps, a company with 18 employees and sales of approximately SEK 35 million, with completion scheduled for September.

Assets and liabilities included in acquisition	Fair value recognised in the Group, SEK million
Intangible assets	0
Property, plant and equipment	15
Trade receivables*	35
Income accrued but not invoiced	7
Other current assets	21
Cash and cash equivalents	20
Non-current liabilities	-3
Trade payables	-11
Income invoiced but not accrued	-2
Other current liabilities	-25
Net identifiable assets and liabilities	61
Consolidated goodwill	195
Consideration	256
Consideration recognised as a liability**	62
Cash consideration paid	175
Cash and cash equivalents, acquired	20
Net effect on cash and cash equivalents	155

* There are no material impairments of trade receivables.

** Of the total consideration recognised as a liability in the period, SEK 35 million consists of contingent consideration.

NOTE 4. Seasonal variations

Bravida's business is affected by seasonal variations in the construction industry and employees' annual holiday. Bravida usually has a lower level of activity in the third quarter as it is the main holiday period. The fourth quarter normally has the highest earnings because a lot of projects are completed during that period.

NOTE 5. Financial instruments, fair value

The fair value of the Group's financial assets and liabilities is not materially different from carrying amounts. No items other than the contingent consideration are recognised at fair value in the balance sheet.

The Board and the Chief Executive Officer hereby confirm that the report gives a true and fair overview of the development of the parent company's and Group's activities, and their financial position and earnings, and describes significant risks and uncertainties faced by the parent company and the companies that make up the Group.

Stockholm, 14 July 2023 Bravida Holding AB

Fredrik Arp Chairman

Jan Johansson Board member

Marie Nygren Board member

Karin Stålhandske Board member

Staffan Påhlsson Board member

Cecilia Daun Wennborg Board member

Mattias Johansson CEO and Group President

Jan Ericson Employee representative

Geir Gjestad Employee representative

Örnulf Thorsen Employee representative Christoffer Lindal Strand Employee representative

Information

This information is information that Bravida Holding is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 7.30 a.m. CEST on 14 July 2023.

This interim report has not been reviewed by Bravida's auditors.

This report contains information and opinions on future prospects for Bravida's business activities. The information is based on the Group management's current expectations and estimates. Actual future outcomes may vary considerably from the forward-looking statements in this report, partly because of changes in economic, market and competitive conditions.

For further information, please contact:

Peter Norström, Investor Relations Email: peter.norstrom@bravida.se Telephone: +46 8 695 20 07

Financial reporting dates

Interim Report July–September 2023 25 October 2023 Interim Report October–December 2023 15 February 2024 Interim Report January–March 2024 7 May 2024

Definitions

Financial definitions

Return on equity

12-month rolling net profit/loss as a percentage of average equity.

EBITA*

Operating profit excluding amortisation and impairment of non-current intangible assets. EBITA is the key indicator and performance metric that is used for internal operational monitoring. EBITA provides an overall view of profit generated by operating activities.

EBITA margin*

EBITA expressed as a percentage of net sales.

EBITDA*

Earnings before interest, taxes, depreciation, and amortisation. EBITDA is a measure that the Group regards as relevant for investors who want to understand earnings generation before investments in non-current assets.

Effective tax rate

Recognised tax expense as a percentage of profit/loss before tax.

Equity per share, SEK

Equity attributable to shareholders of the parent company divided by the number of ordinary shares outstanding at period end.

Net financial items

Total exchange differences on borrowing and cash and cash equivalents in foreign currency, other financial revenue and other finance costs.

Average number of employees

Calculated as the average number of employees during the year, taking account of the percentage of full-time employment.

Capital structure (Net debt/EBITDA)

Net debt divided by EBITDA, based on a rolling 12-month calculation. A healthy capital structure provides a solid basis for continued business operations. The capital structure should enable a high degree of financial flexibility and provide scope for acquisitions.

Cash conversion*

Cash conversion, 12 months. Cash flow from operating activities adjusted for tax payments, net financial items and investments in machinery and equipment in relation to EBITDA.

This key indicator measures the share of profit converted into cash flow. The purpose is to analyse what percentage of earnings can be converted into cash and cash equivalents and, in the longer term, the opportunity for investments, acquisitions and dividends, with the exception of interest-related cash flows.

Net sales

Net sales are recognised according to the principle of accounting over time, previous revenues are recognised as the projects have been completed.

Net debt*

Interest-bearing liabilities, (including lease liabilities, excluding pension liabilities) less cash and cash equivalents. This key indicator is a measure to show the Group's total interest-bearing debt.

Order intake

The value of new projects and contracts received, and changes in existing projects and contracts over the period in question. Includes both the installation business and the service business.

Order backlog

The value of remaining, not yet accrued project revenues from orders on hand at the end of the period. Order backlog does not include service operations, only installation projects.

Organic growth

The change in sales adjusted for currency effects, as well as acquisitions and disposals compared with the same period of the previous year. Sales from acquisition and divestments are eliminated for a period of 12 months from the date of acquisition or divestment.

Diluted earnings per share

Profit/loss for the period attributable to shareholders of the parent company divided by the average number of outstanding ordinary shares after dilution.

Basic earnings per share

Profit/loss for the period attributable to shareholders of the parent company divided by the average number of outstanding ordinary shares.

Interest coverage ratio*

Profit/loss after financial items plus interest expense, divided by interest expense. This key indicator is a measure of how much earnings may fall by without interest payments being jeopardised or how much interest on borrowing may increase without operating profit turning negative.

Working capital*

Total current assets, excluding cash and cash equivalents, minus current liabilities excluding current provisions and interest-bearing short-term loans. This measure shows how much working capital is tied up in the business and may be set in relation to sales to understand how efficiently tied-up working capital is being used.

Operating margin

Operating profit/loss as a percentage of net sales.

Operating profit/EBIT

Earnings before net financial items and tax.

Equity/assets ratio

Equity including non-controlling interests as a percentage of total assets.

Sustainability definitions

Please note that newly acquired companies are not included in the reporting of sustainability indicators.

Change in CO2e emissions, vehicles

Refers to scope 1 emissions from vehicles either leased or owned

by Group companies and includes both service vehicles and company cars. Emissions are calculated in accordance with the GHG Protocol and emission factors for petrol and diesel (Well To Wheel) are based on data from the Swedish Energy Agency.

LTIFR

(Lost Time Injury Frequency Rate) The number of work accidents that lead to at least one day of sickness absence per million working hours. The reporting includes employed staff and the definition of occupational injuries is based on the "Target Zero" initiative.

Operational definitions

Installation/contracting

The installation and refurbishment of technical systems in properties, facilities and infrastructure.

Service

Operation and maintenance, as well as minor refurbishment of installations in buildings and facilities.

Electrics

Power supply, lighting, heating, control and surveillance systems.

* See page 16 for reconciliation of key performance indicators.

INTERIM REPORT APRIL–JUNE 2023 21

Telecom and other low-voltage installations. Fire and intruder alarm products and systems, access con-

trol systems, CCTV and integrated

Ventilation and air

security systems.

conditioning Comfort ventilation and comfort cooling through air treatment, air conditioning and climate control. Commercial cooling in freezer and cold rooms. Process ventilation,

control systems. Energy audits and energy efficiency through heat recovery ventilation, heat pumps, etc.

Technical area heating & plumbing

Water, wastewater, heating, sanitation, cooling and sprinkler systems. District heating and cooling. Industrial piping with expertise in all types of pipe welding. Energy saving through integrated energy systems.

Other

Refers to other technical areas such as power, security, cooling, solar panels, energy optimisation, sprinklers, building automation and technical facility management.

This is Bravida

Bravida is the Nordic region's leading provider of end-to-end solutions for the service and installation of electrical, heating and plumbing, HVAC and other technical functions in buildings and facilities.

What we provide

Bravida has an important role to play in the transition to a climate-neutral society. We help customers make their properties and facilities better and more cost-efficient and resource-efficient. We suggest and install technological solutions that are energy-efficient and long-lasting. With regular maintenance, we ensure everything works as intended – 24/7, all year round.

What we do

Bravida's fitters install electrical equipment, heating, plumbing, ventilation and all the other technical functions that bring buildings to life. Our service technicians take care of the technology, suggest improvements and switch to energy-efficient components where this is required. Of course, they also fix everything from dripping taps and uninsulated pipes to old systems that need to be made more efficient.

Our locations

Having a local presence and proximity to customers are key elements in Bravida's business. Customers can find our 13,000 employees at 325 branches in around 180 locations in Sweden, Norway, Denmark and Finland.

Technology partner throughout the entire life cycle of the property

Bravida helps customers create climatesmart technical solutions for buildings and facilities of all sizes. We ensure the technology functions cohesively throughout the life cycle of the property - from planning and installation through to operation, maintenance and renovation.

INTERIM REPORT APRIL–JUNE 2023 22

THIS IS BRAVIDA

Our strategies Our vision

Bravida helps customers develop the full potential of their properties. With service and installation, we bring buildings to life – and lead the way towards a sustainable and resilient society.

Mission

We offer technical end-to-end solutions over the lifetime of a property, from consulting and project design to installation and service.

We are a large company with a local presence throughout the Nordic region. We meet customers on site and take long-term responsibility for our work.

Our employees are our most important asset. Through our shared values, work methods and tools, we work together to establish a sustainable and profitable business for ourselves and our customers.

Our strategies

Best customer offering

By creating well-functioning and resource-efficient properties, we help our customers make the transition to a more sustainable society. We continually strive to strengthen and refine our customer offering. In addition, every employee strives every day to create the best customer experience on the market.

The best team

As a service company, Bravida is dependent on having employees who are proactive, keep their promises, take responsibility for their work and care about their customers. That's why we're a business with a focus on people. We invest in our employees and our leadership. By working to ensure and promote equality and diversity, we become a stronger company.

Efficient delivery – margin before volume

At Bravida, we are professionals who do a professional job. We work efficiently, are cost-conscious and make sure to keep good order at our workplaces and in our assignments. We always apply our shared working methods and purchase appropriately. We only accept projects and assignments with a healthy margin.

Sustainable business operations

With our services, we contribute to a more sustainable use of resources. At the same time, we are also adapting our own operations: we are reducing our climate footprint, we have created a team in which everyone feels safe, and is happy and thrives, and we set high ethical standards for ourselves and our suppliers.

Long-term and profitable growth

Bravida's objective is to be the largest or second-largest market participant in the locations in which we choose to operate. When a branch is profitable and has the fundamentals in place, we focus on growth by developing what we offer, improving sales or recruiting. We also grow via acquisitions, both bolt-on acquisitions in locations where we already have a presence and strategic acquisitions to establish ourselves in new markets or new technology areas.

The Bravida Way

We bring buildings to life

Head office

Bravida Holding AB 126 81 Stockholm Sweden Street address: Mikrofonvägen 28 Telephone: +46 8 695 20 00 www.bravida.com

Sweden

Bravida Sverige AB 126 81 Stockholm Sweden Street address: Mikrofonvägen 28 Telephone: +46 (0)8 695 20 00 www.bravida.com

Norway

Bravida Norge AS Postboks 313 Økern 0511 Oslo Norway Street address: Lørenveien 73 Telephone: +47 2404 80 00 www.bravida.no

Denmark

Bravida Danmark A/S Park Allé 373 2605 Brøndby Denmark Telephone: +45 4322 1100 www.bravida.dk

Finland

Bravida Finland Oy Valimotie 21 00380 Helsinki Finland Telephone: +358 10 238 8000 www.bravida.fi