Interim report January - March 2023

Strong start to the year with continued healthy growth in both sales and operating profit, and a robust improvement in cash flow

First quarter of 2023

Net sales increased by 19 percent to SEK 2,386 million (2,002). Organic growth was 0 percent and order intake was somewhat lower than net sales
Operating profit (EBITA) increased by 33 percent to SEK 323 million (243) and the operating margin was 13.5 percent (12.1). Adjusted for items affecting comparability related to the closure of the Russian operations of SEK 0 million (-15), remeasured additional purchase considerations of SEK -2 million (-15) and acquisition costs of SEK 0 million (-8), operating profit increased by 16 percent to SEK 325 million (281), corresponding to an adjusted operating margin of 13.6 percent (14.0)
Earnings per share increased by 21 percent to SEK 5.33 (4.42)
Operating cash flow amounted to SEK 336 million (-22), corresponding to a cash conversion ratio of 99 percent (-8)
Bufab once again achieved its highest ever sales, operating profit and earnings per share for a single quarter

	Quarter 1		Δ	12-months rolling	Full year
SEK million	2023	2022	%	2022/23	2022
Order intake	2,329	2,041	14	8,631	8,453
Net sales	2,386	2,002	19	8,823	8,431
Gross profit	675	561	20	2,503	2,389
%	28.3	28.0		28.4	28.3
Operating expenses	-351	-318	11	-1,433	-1,399
%	-14.7	-15.9		-16.2	-16.6
Operating profit (EBITA)	323	243	33	1,071	990
%	13.5	12.1		12.1	11.7

Operating profit	306	233	32	1,004	930
%	12.8	11.6		11.4	11.0
Profit after tax	201	166	26	645	609
Earnings per share, SEK	5.33	4.42	21	17.14	16.23

THE GROUP IN BRIEF (FOR DEFINITIONS, SEE PAGE 18)

Net sales, SEK million Operating profit (EBITA), SEK

SALES GROWTH +19%

OPERATING MARGIN (EBITA) 13.5%

Strong start to the year

We had a very positive start to the year, despite challenging market conditions. Bufab once again achieved its highest ever sales, operating profit and earnings per share for a single quarter.

The sales growth for the quarter amounted to a strong 19 percent, driven by the latest year's acquisitions and currency effects. Organic growth was 0 percent, positively impacted by a healthy performance in Segments West and North but offset by strong comparative figures and weak demand in Segments East and UK/North America. Order intake was slightly lower than sales.

The gross margin increased somewhat, primarily driven by a positive business mix. The share of operating expenses decreased during the quarter, but when adjusted for items affecting comparability in the first quarter of 2022 related to the discontinuation of our Russian operations, remeasured additional purchase considerations and acquisition costs, the share of operating expenses increased somewhat.

We have continued good cost control within the Group, despite increased inflationary pressure. This, combined with good contributions from the recent year's acquisitions, explains the good result in the quarter. Overall, operating profit rose by 33 percent and the operating margin was a strong 13.5 percent (12.1). Adjusted for the above-mentioned items affecting comparability, operating profit increased 16 percent and the operating margin amounted to 13.6 percent (14.0). All segments contributed to the

earnings development, but especially Segment North and Segment West.

Our efforts to improve our cash flow have paid off and operating cash flow improved significantly during the quarter as a direct result of the strong earnings development combined with inventory reductions. We expect continued strong cash flow coming quarters.

We continue to undertake the intensive work of integrating the recent acquisitions, with the sustained priority of realising growth synergies high on the agenda. We also continue with the long-term development of our business by, integrating sustainability throughout the whole organisation, broadening our customer offer, as well as increasing our degree of both digitalisation and productivity. In addition to the this, we also continue to work with efficiency activities to compensate for the realised inflationary pressure and have situationally adapted plans in place for each company within the Group.

Given the geopolitical and macroeconomic situation, there is great uncertainty, and we are seeing a continued cautionary approach among our customers in certain industrial segments. However, we have a large and a well-diversified customerand article portfolio, with good diversification of risk in various industries and markets. At the same time, a weaker economy creates favourable conditions for a strong player such as Bufab to take new market shares as customers increase their focus on reducing indirect costs such as C-parts. These possibilities combined with our broad customer offer and increased customer relevance give us a favourable outlook for a continued long-term, sustainable, and profitable growth journey.

Finally, I would like to thank our customers for the trust they show us and extend a big thank you to our approximately 1 800 "solutionists" worldwide. Without your commitment and effort, we would not have been able to deliver such a strong quarter.

Erik Lundén President and CEO

The Group in brief

FIRST QUARTER

Order intake amounted to SEK 2,329 million (2,041) and was slightly lower than net sales.

Net sales increased by 19 percent to SEK 2,386 million (2,002). Of the total growth of 19 percent, 5 percent was attributable to currency effects, 14 to acquisitions and 0 percent to organic growth. Organic growth was positively impacted by a healthy performance in Segments West and North, but offset by strong comparative figures and weak demand in Segments East and UK/North America. The market share is deemed to be unchanged.

The gross margin increased somewhat to 28.3 percent (28.0). The improved gross margin was mainly a result of a favourable business mix relative to the comparative quarter.

The share of operating expenses was 14.7 percent (15.9). Adjusted for the following items affecting comparability: closure of the Russian operations totalling SEK 0 million (-15), remeasured additional purchase considerations of SEK -2 million (-15) and acquisition costs of SEK 0 million (-8), the share of operating expenses amounted to 14.6 percent (14.0). The Group continues to maintain effective cost control, despite persistent inflationary pressure.

Operating profit (EBITA) rose by 33 percent to SEK 323 million (243) and the operating margin was 13.5 percent (12.1). Adjusted for the above mentioned comparative items, operating profit amounted to SEK 325 million (281) and the operating margin to 13.6 percent (14.0). Exchange-rate fluctuations impacted operating profit by SEK 12 million.

Earnings per share increased by 21 percent to SEK 5.33 (4.42).

FINANCIAL ITEMS AND TAX

Net financial items amounted to SEK -41 million (-13), of which exchange-rate differences accounted for SEK 4 million (-1). Profit after financial items amounted to SEK 265 million (220).

The tax expense was SEK -64 million (-54), implying an effective tax rate of 24 percent (25).

CASH FLOW, WORKING CAPITAL AND FINANCIAL POSITION

Operating cash flow noted a robust improvement during the quarter, a direct result of a continued strong earnings trend in combination with a reduced working

capital, with favourable contributions from inventory reductions.

	Quarter 1
SEK million	2023	2022
EBITDA, adjusted	338	256
Other non-cash items	4	32
Changes in working capital	7	-292
Cash flow from operations	349	-7
Investments excluding acquisitions	-13	-15
Operating cash flow	336	-22
Cash conversion	99%	-8%

Average working capital in relation to net sales amounted to 40.1 percent (30.9). The deterioration was primarily due to the Group increasing its inventory during 2022 in response to the longer lead times created by the strained supply chain.

The adjusted net debt as per 31 March 2023, totalled SEK 3,042 million (2,782) and the debt/equity ratio was 108 percent (128). The higher net debt, were primarily attributable to the acquisitions completed in the past 12 months, the negative exchange-rate impact on acquisition loans in foreign currency and costs attributable to remeasured additional purchase considerations.

The key figure net debt/EBITDA, adjusted, decreased by 0.5x during the quarter and amounted to a multiple of 2.7 (3.4) at the end of the quarter.

Net debt / EBITDA, adjusted, multiple

Segment North

Segment North comprises Bufab's operations in Sweden, Finland, Norway and Denmark, a purchasing office in China, which is affiliated to the segment, and the during 2022 acquired company Pajo-Bolte A/S. The companies' operations mainly comprise trading companies, but also certain manufacturing of particularly demanding components.

FIRST QUARTER

The segment noted favourable growth during the quarter. The total growth was 18 percent and was mainly attributable to the acquisition of Pajo-Bolte, but also to continued healthy underlying demand, primarily in the Swedish operations. Organic growth amounted to 4 percent. The market share is deemed to be somewhat higher compared to previous year. Order intake was slightly lower than net sales.

The gross margin was unchanged relative to the comparative quarter.

The share of operating expenses decreased relative to the comparative period, primarily as a result of effective cost control and increased efficiency combined with somewhat higher volumes.

Due to a stable gross margin and a lower share of operating expenses, both operating profit and the operating margin increased relative to the comparative quarter.

	Quarter 1		Δ	Rolling 12 months	Full year
SEK million	2023	2022	%	2022/23	2022
Order intake	789	681	16	2,924	2,815
Net sales	821	694	18	2,964	2,837
Gross profit	215	182	18	769	737
%	26.2	26.2		25.9	26.0
Operating expenses	-98	-91	-7	-391	-384
%	-11.9	-13.1		-13.2	-13.5
Operating profit (EBITA)	117	91	29	378	352
%	14.2	13.1		12.8	12.4

Segment West

Segment West comprises Bufab's operations in France, the Netherlands, Germany, the Czech Republic, Austria and Spain.

FIRST QUARTER

The segment reported continued strong demand during the quarter. Total growth was 20 percent and organic growth was a strong 13 percent. The organic growth was mainly attributable to continued healthy underlying demand and increased market shares. The operations in France, the Netherlands and Czech Republic had an especially strong performance, driven by higher demand and increased market shares particularly in the automotive, engineering and defence industry. Order intake was in line with net sales.

The gross margin was somewhat higher, primarily as a result of a positive business mix relative to the comparative quarter.

The percentage of operating expenses decreased as a direct result of continued healthy cost control combined with the higher volumes.

Overall, operating profit increased by a strong 46 percent to SEK 73 million (50), equal to an operating margin of 13.8 percent (11.4).

	Quarter 1		Δ	Rolling 12 months	Full year
SEK million	2023	2022	%	2022/23	2022
Order intake	520	457	14	1,721	1,716
Net sales	526	440	20	1,781	1,694
Gross profit	128	104	23	431	408
%	24.3	23.7		24.2	24.1
Operating expenses	-55	-55	0	-220	-219
%	-10.5	-12.5		-12.4	-12.9
Operating profit (EBITA)	73	50	46	211	188
%	13.8	11.4		11.9	11.1

Q1 23

SHARE OF TOTAL SALES

Segment East

Segment East comprises Bufab's operations in Poland, Hungary, Romania, the Baltic States, Slovakia, Turkey, China, the Philippines, Singapore and other countries in Southeast Asia, India and the during 2022 acquired company CDA Bufab.

FIRST QUARTER

The segment noted continued growth during the quarter. Total growth amounted to 5 percent and was fully attributable to acquisitions and currency effects. Organic growth was -6 percent. The negative organic growth was mainly attributable to strong comparative figures and a weaker trend in Poland and Singapore. The acquired company CDA Bufab (fm CDA Polska) continued its favourable development during the quarter. Order intake was slightly higher than net sales.

The gross margin was in line with the comparative quarter.

The share of operating expenses decreased significantly as a direct result of the comparative quarter being charged with costs for the discontinuation of the segment's Russian operations totalling SEK -15 million. Adjusted for these costs, the share of operating expenses amounted to 15.0 percent (13.9).

Overall, operating profit increased to SEK 49 million (36), equal to a margin of 16.6 percent (12.7). Adjusted for the above mentioned items affecting comparability, operating profit amounted to SEK 49 million (51), corresponding to an adjusted operating margin of 16.6 percent (18.1).

	Quarter 1		Δ	Rolling 12 months	Full year
SEK million	2023	2022	%	2022/23	2022
Order intake	302	289	4	1,079	1,066
Net sales	297	282	5	1,088	1,073
Gross profit	94	90	5	347	342
%	31.6	31.7		31.9	31.9
Operating expenses	-45	-54	-17	-181	-190
%	-15.0	-19.0		-16.6	-17.7
Operating profit (EBITA)	49	36	37	166	153
%	16.6	12.7		15.3	14.2

Quarter Rolling 12 month

Segment UK/North America

Segment UK/North America comprises Bufab's operations in the UK, Ireland, the US, Mexico and during the 2022 acquired company TI Midwood & Co Ltd. (TIMCO).

FIRST QUARTER

The segment reported strong growth of 27 percent, entirely attributable to acquisitions and currency effects. Organic growth amounted to -13 percent. The negative organic growth was due to strong comparative figures and a reduced demand for stainless steel C-parts in the UK and within the mobile home and trailer markets in North America. However, operations in Ireland performed strongly and the acquisition of TIMCO in the UK noted continued good volumes during the quarter. Order intake was lower than net sales.

The gross margin was somewhat lower than in the strong comparative quarter. The lower gross margin was primarily attributable to the acquisition of TIMCO, which has a lower gross margin than the rest of the segment. Adjusted for the acquisition of TIMCO, the gross margin was 32.5 percent (32.0), an improvement driven mainly by a positive business mix.

The proportion of operating expenses increased. Adjusted for remeasured additional purchase considerations of SEK -2 million (-14), the share of operating expenses increased to 18.3 percent (17.3). The increase is mainly attributable to lower volumes relative to the comparative quarter.

Overall, operating profit increased by 14 percent to SEK 96 million (85), equal to an operating margin of 13.0 percent (14.5). Adjusted for the above mentioned items affecting comparability, operating profit amounted to SEK 98 million (98), corresponding to an operating margin of SEK 13.2 million (16.9).

	Quarter 1		Δ	Rolling 12 months	Full year
SEK million	2022	2022	%	2022/23	2022
Order intake	718	614	17	2,907	2,855
Net sales	742	585	27	2,988	2,824
Gross profit	234	187	25	937	890
%	31.6	32.0		31.4	31.5
Operating expenses	-138	-103	34	-604	-568
%	-18.6	-17.5		-20.2	-20.1
Operating profit (EBITA)	96	85	14	333	321
%	13.0	14.5		11.2	11.4

Consolidated Income Statement

	Quarter 1
SEK million	2023	2022
Net sales	2,386	2,002
Cost of goods sold	-1,711	-1,441
Gross profit	675	561

Distribution costs	-227	-172
Administrative expenses	-146	-124
Other operating income and operating expenses	4	-32
Operating profit	306	233

Profit/loss from financial items
Interest income and similar income items	8	1
Interest expenses and similar expenses	-49	-14
Profit after financial items	265	220

Tax on net profit for the period	-64	-54
Profit after tax	201	166

Statement of Comprehensive Income

	Quarter 1
SEK million	2023	2022
Profit after tax	201	166

Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Translation differences / Currency hedging net after tax	37	32
Other comprehensive income after tax	37	32
Total comprehensive income	238	198

Total comprehensive income attributable to:
Parent Company shareholders	238	198

Earnings per share

	Quarter 1
SEK	2023	2022
Earnings per share	5.33	4.42
Weighted number of shares outstanding before dilution, thousands	37,729	37,489
Diluted earnings per share, SEK	5.25	4.35
Weighted number of shares outstanding after dilution, thousands	38,280	38,144

Consolidated Balance Sheet

SEK million	31 Mar 23	31 Mar 22	31 Dec 22
ASSETS
Non-current assets
Intangible assets	3,374	3,130	3,373
Property, plant and equipment	712	736	711
Financial assets	30	34	33
Total non-current assets	4,116	3,900	4,117
Current assets
Inventories	3,258	2,602	3,449
Current receivables	1,807	1,702	1,548
Cash and cash equivalents	280	323	322
Total current assets	5,346	4,627	5,319

Total assets	9,462	8,527	9,436
EQUITY AND LIABILITIES
Equity	3,284	2,575	3,036
Non-current liabilities
Non-current liabilities, interest-bearing	2,950	3,334	3,173
Non-current liabilities, non-interest bearing	377	849	370
Total non-current liabilities	3,327	4,183	3,543
Current liabilities
Current liabilities, interest-bearing	865	281	911
Current liabilities, non-interest-bearing	1,986	1,488	1,946
Total current liabilities	2,851	1,769	2,857

Total equity and liabilities	9,462	8,527	9,436

Consolidated Statement of Changes in Equity

SEK million	31 Mar 23	31 Mar 22
Equity at beginning of year	3,036	2,377
Comprehensive income
Profit after tax	201	166
Other comprehensive income
Items that may be reclassified in profit or loss
Translation differences / Currency hedging net after tax	37	32
Total comprehensive income	238	198
Transactions with shareholders
Call option premium	12	0
Redemption call option programme	-2	0
Total transactions with shareholders	10	0
Equity at end of period	3,284	2,575

Consolidated Cash Flow Statement

		Quarter 1
SEK million	2023	2022
Operating activities
Profit before financial items	306	232
Depreciation/amortisation and impairment	67	50
Interest and other finance income	8	1
Interest and other finance expenses	-49	-14
Other non-cash items	4	32
Income tax paid	-42	-61
Cash flow from operating activities before changes in working capital	294	240
Changes in working capital
Increase (-)/decrease (+) in inventories	243	-90
Increase (-)/decrease (+) in operating receivables	-238	-230
Increase (+)/decrease (-) in operating liabilities	2	28
Cash flow from operating activities	301	-52
Investing activities
Acquisition of property, plant and equipment	-12	-15
Company acquisitions including additional purchase considerations	-7	-936
Acquisition of intangible assets	-1	-
Cash flow from investing activities	-20	-951
Financing activities
Incentive programme	10	0
Increase (+)/decrease (-) in borrowings	-331	1,031
Cash flow from financing activities	-321	1,031
Cash flow for the period	-40	28
Cash and cash equivalents at beginning of period	323	293
Translation differences	-3	1
Cash and cash equivalents at end of period	280	323

The Group's segment reporting

SEK million	2021 2022							2023
North	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	599	608	545	613	694	758	656	729	821
Gross profit	159	154	145	153	182	206	169	179	215
%	26.5	25.2	26.7	25.0	26.2	27.2	25.8	24.6	26.2
Operating expenses	-86	-88	-95	-93	-91	-102	-99	-92	-98
%	-14.4	-14.4	-17.4	-15.2	-13.1	-13.4	-15.2	-12.6	-11.9
Operating profit (EBITA)	73	66	50	60	91	104	70	87	117
%	12.2	10.8	9.2	9.8	13.1	13.8	10.7	11.9	14.2

SEK million			2021				2023
West	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	314	307	289	326	440	426	419	409	526
Gross profit	82	78	70	81	104	100	101	103	128
%	26.1	25.3	24.3	24.7	23.7	23.5	24.0	25.1	24.3
Operating expenses	-47	-45	-46	-51	-55	-54	-51	-59	-55
%	-15.0	-14.8	-15.8	-15.6	-12.5	-12.6	-12.3	-14.5	-10.5
Operating profit (EBITA)	35	32	24	29	50	46	49	43	73
%	11.1	10.5	8.5	9.0	11.4	10.8	11.7	10.5	13.8

SEK million		2021				2022
East	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	216	218	222	233	282	266	272	253	297
Gross profit	68	67	67	73	90	83	88	81	94
%	31.5	30.8	30.4	31.3	31.7	31.4	32.4	32.1	31.6
Operating expenses	-29	-25	-33	-39	-54	-40	-49	-47	-45
%	-13.4	-11.5	-14.8	-16.7	-19.0	-15.0	-18.0	-18.7	-15.0
Operating profit (EBITA)	39	42	35	34	36	44	39	34	49
%	18.1	19.3	15.6	14.6	12.7	16.4	14.4	13.4	16.6

SEK million			2021				2023
UK/North America	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	293	298	369	427	585	791	774	681	742
Gross profit	93	95	122	137	187	253	238	212	234
%	31.7	32.0	33.0	32.1	32.0	32.0	30.7	31.1	31.6
Operating expenses	-52	-42	-60	-88	-103	-206	-122	-137	-138
%	-17.7	-14.0	-16.2	-20.6	-17.5	-26.0	-15.8	-20.1	-18.6
Operating profit (EBITA)	41	54	62	49	85	47	115	74	96
%	14.0	18.0	16.9	11.5	14.5	5.9	14.9	10.9	13.0

SEK million	2021					2022	2023
Other	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	1	0	0	0	1	0	1	2	0
Gross profit	-5	-1	1	0	-3	-3	6	8	4
Operating expenses	-6	-8	-7	-3	-16	-9	-7	-5	-16
Operating profit (EBITA)	-11	-9	-7	-3	-18	-8	-2	2	-12

*Other includes unallocated costs of a Group-wide nature and costs for the Sourcing offices in China and Taiwan.

SEK million			2021				2023
Group	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
Net sales	1,423	1,431	1,425	1,599	2,002	2,241	2,122	2,074	2,386
Gross profit	397	393	405	443	561	645	601	583	675
%	27.9	27.4	28.4	27.7	28.0	28.8	28.3	28.1	28.3
Operating expenses	-220	-208	-241	-274	-318	-411	-329	-341	-351
%	-15.5	-14.5	-16.9	-17.1	-15.9	-18.3	-15.5	-16.4	-14.7
Operating profit (EBITA)	177	185	164	169	243	233	272	242	323
%	12.4	12.9	11.5	10.6	12.1	10.4	12.8	11.7	13.5

Consolidated Key Figures

For definitions, see page 18.	Quarter 1		Δ	12- months rolling	Full year
	2023	2022	%	2022/23	2022
Order intake, SEK million	2,329	2,041	14	8,631	8,453
Net sales, SEK million	2,386	2,002	19	8,823	8,431
Gross profit, SEK million	675	561	20	2,503	2,389
EBITDA, SEK million	373	283	32	1,261	1,170
EBITDA, adjusted, SEK million	337	256	32	1,123	1,041
Operating profit (EBITA), SEK million	323	243	33	1,071	990
Operating profit, SEK million	306	233	32	1,004	930
Profit after tax, SEK million	201	166	21	645	609

Gross margin, %	28.3	28.0		28.4	28.3
Operating margin (EBITA), %	13.5	12.1		12.1	11.7
Operating margin, %	12.8	11.6		11.4	11.0
Net margin, %	8.4	8.3		7.3	7.2

Net debt, SEK million	3,535	3,292	8
Net debt, adjusted, SEK million	3,042	2,782	9
Debt/equity ratio, %	108	128
Net debt / EBITDA, adjusted, multiple (1)	2.7	3.4
Working capital, SEK million	3,708	2,839	31
Average working capital, SEK million	3,542	2,109	68
Average working capital in relation to net sales, %	40.1	30.9
Equity/assets ratio, %	35	30
Operating cash flow, SEK million	336	-22	1 627
Earnings per share, SEK	5.33	4.42	21

(1) Paid purchase prices have been charged in full to adjusted net debt while EBITDA, adjusted, has only been credited from the respective acquisition date.

Parent Company Income Statement

	Quarter 1
SEK million	2023	2022
Administrative expenses	-5	-3
Other operating income	2	1
Operating loss	-3	-2
Profit/loss from financial items
Interest expenses and similar expenses	-	-
Loss after financial items	-3	-2

Appropriations	-	-
Tax on net profit for the period	-	-
Loss after tax	-3	-2

Other comprehensive income	-	-
Total comprehensive income	-3	-2

Parent Company Balance Sheet

SEK million	31 Mar 23	31 Mar 22	31 Dec 22
ASSETS
Non-current assets
Financial assets
Participations in Group companies	845	845	845
Total non-current assets	845	845	845

Current assets
Receivables from Group companies	327	198	318
Other current receivables	17	54	26
Cash and cash equivalents	-	-	-
Total current assets	353	252	344

Total assets	1,189	1,097	1,189

EQUITY AND LIABILITIES
Equity	1,081	981	1,073

Untaxed reserves	94	93	94

Non-current interest-bearing liabilities
Other non-current liabilities	-	-	-
Total non-current liabilities	0	0	0

Current non-interest-bearing liabilities
Other current liabilities	14	23	22
Total current liabilities	14	23	22

Total equity and liabilities	1,189	1,097	1,189

Other information

ACCOUNTING POLICIES

This interim report has been prepared pursuant to IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company's financial statements were prepared in accordance with the Swedish Annual Accounts Act, Chapter 9 and the Swedish Financial Reporting Board's recommendation RFR 2. The accounting policies applied correspond to the accounting policies an measurement principles presented in the 2022 Annual Report. The 2022 Annual Report is available at www.bufabgroup.com

RISKS AND RISK MANAGEMENT

Exposure to risk is a natural part of business activity, and this is reflected in Bufab's approach to risk management. Risk management aims to identify and prevent risks and to limit any loss or damage from these risks. The main risks to which the Group is exposed relate to the impact of the economy on demand. For further information regarding risks and risk management, see Note 3 of the 2022 Annual Report.

SEASONAL VARIATIONS

Bufab has no significant seasonal variation in its sales, but sales over the year vary based on the number of production days in each quarter for customers.

RELATED-PARTY TRANSACTIONS

No related-party transactions occurred during the year, except for the payment of the fee to the Board of Directors, remuneration of the President and senior executives, and new subscription for call options within the framework of the long-term sharebased incentive programme adopted at the Annual General Meeting under the terms outlined in more detail below. Further, the redemption of the longterm share-based incentive programme adopted at the 2019 Annual General Meeting was implemented on the terms contained in the 2022 Annual Report.

ACQUISITIONS

Acquisitions made during 2021-2023:

	Date	Net sales*	Employees
Component Solutions
Group Ltd.	8 Sep 2021	280	85
Jenny Waltle GmbH	19 Oct 2021	190	43
Tilka Trading AB	21 Oct 2021	50	18
Pajo-Bolte A/S	14 Mar 2022	190	40
TI Midwood & Co Ltd.	21 Mar 2022	730	187
CDA Polska S.p.z.o.o	21 Apr 2022	93	47

*Estimated annual net sales at the date of acquisition

Additional purchase considerations

The Group's liabilities for conditional considerations and unconditional additional purchase considerations attributable to acquisitions are measured at fair value. These items are recognised at fair value in the balance sheet with changes in value recognised in profit or loss. Total recognised liabilities for additional purchase considerations amounted to SEK 819 million at 31 March 2023 (679), of which SEK 189 million (672) was recognised as Non-current liabilities, non-interestbearing and SEK 630 million (7) was recognised as Current liabilities, non-interest-bearing in the consolidated balance sheet. The reported additional purchase considerations are included – according to the Group's definition – in the amounts for "net indebtedness" and "net debt, adjusted" from the time when they are finally calculated and paid out.

SIGNIFICANT EVENTS DURING THE YEAR

Organisation

On 3 April, it was announced that Frederick Neely had been appointed acting CFO of Bufab as of 1 May 2023. Frederick will assumes his new role in conjunction with the current CFO, Marcus Söderberg, stepping down from his role to take up a position outside of the Group. Recruitment of a new CFO to replace Marcus Söderberg is in progress and is expected to be completed in the second quarter of 2023.

EMPLOYEES

The number of employees in the Group at 31 March 2023 amounted to 1,841 (1,750).

CONTINGENT LIABILITIES AND COLLATERALS

No additional significant changes were made to the company's contingent liabilities during the period.

AUDIT REVIEW

This interim report has not been examined by the company's auditors.

CALENDAR

Annual General Meeting 2023:	20 April 2023
Interim report Q2, 2023:	13 July 2023
Interim Report Q3, 2023:	26 October 2023
Year-end report 2023:	8 February 2024

Värnamo, 20 April 2023

Erik Lundén President and CEO

Definitions of key figures

Gross margin, %

Gross profit as a percentage of net sales for the period

EBITDA

Operating profit before depreciation, amortisation and impairment

EBITDA, adjusted

Operating profit before depreciation, amortisation and impairment, less amortisation on right-of-use assets according to IFRS 16 Leases. This key figure is intended to present a comparable EBITDA as though IAS 17 continued to be applied.

Operating profit (EBITA)

Gross profit less operating expenses

Net debt

Interest-bearing liabilities, less cash and cash equivalents and interest-bearing assets, calculated at the end of the period

Net debt, adjusted

Interest-bearing liabilities, excluding lease liabilities according to IFRS 16, less cash and cash equivalents and interest-bearing assets, calculated at the end of the period

Debt/equity ratio, %

Net debt divided by equity, calculated at the end of the period