Fagerhult

Quarterly Report • Oct 28, 2022

Interim Report Q3 January-September 2022

info@fagerhultgroup.com www.fagerhultgroup.com

1,891

Order intake, MSEK

Order intake was MSEK 1,891 (1,895), a decrease of -0.2% adjusted to -5.2% for currency effects of MSEK +94

2,081

Net sales, MSEK

Net sales were MSEK 2,081 (1,745), an increase of +19.3% adjusted to +13.0% for currency effects of MSEK +109

219

Operating profit, MSEK Operating profit was MSEK 218.8 (184.2), an increase of +18.8% with an operating margin of 10.5 (10.6)%

157

Net profit, MSEK Earnings after tax were MSEK 156.9 (127.6)

0.89

Earnings per share, SEK Earnings per share were SEK 0.89 (0.72)

85

Operating cash flow, MSEK Cash flow from operating activities was MSEK 85.3 (201.8)

The third quarter

The demand for sustainable solutions remains a favourable mega-trend. The Group's success in renovation projects increases with new sustainable solutions. These projects provide shorter payback periods as energy prices escalate. Our focus on these solutions increases and we continue to be well positioned for this.

In an unstable market situation we continue to deliver stable order intake levels.

We have dealt well with the supply chain challenges and now we see steady improvements from our supply chain.

We will continue to manage these challenges and do everything possible to maintain high levels of service to our customers.

Order intake at 1,891 (1,895) MSEK results in a slight overall decline of -0.2%, adjusted to -5.2% for currencies and the order backlog remains healthy at 2,281 (1,870) MSEK, an increase of +22% from Q3 2021.

Net sales at 2,081 (1,745) MSEK delivers an overall growth of +19.3%, adjusted to +13.0% for currencies.

The results for the quarter benefit from the growing impact of price increases implemented during previous quarters. This positive trend should continue as our businesses focus on pricing.

The operating profit of 218.8 (184.2) MSEK delivers an operating margin of 10.5 (10.6)%. The operating margin increased 1.4% compared to Q2.

The operating cash flow was 85.3 (201.8) MSEK with the variance to last year being due to a 226 (36) MSEK increase in working capital. This increase results from sales growth naturally increasing accounts receivables by 81.7 MSEK and a 71.2 MSEK increase in inventory to protect against the supply chain challenges.

CEO comment

The third quarter

Customer demand was very strong, resulting in the second highest quarterly net sales level ever.

The Group's performance continues to improve and the opportunities arising from the mega-trends are very positive. We deliver modern connected lighting solutions that reduce energy consumption by up to 90%.

The Group's focus on our strategic focus areas of people and culture, innovation and sustainability remains the driving force for key decision making.

Headline sustainability news in the quarter was our commitment to the Science Based Targets initiative, meaning we sign up to the Paris Agreement for the 1.5 degree target and further to be carbon neutral in the longer term.

Our performance improved with a 19.3% sales growth to 2,081 (1,745) MSEK, an operating profit of 219 (184) MSEK and a solid 10.5 (10.6)% operating margin.

The Group continues to deal well with the challenges in the world around us. We see an increased level of geopolitical and economic uncertainty but improvements in the supply chain situation.

The rolling 12 month order intake continues to be above 8 BSEK.

Rolling 12 month and quarterly order intake

To further support this with our customers in the quarter we have delivered many customer activities; from Fagerhult the 'Light Symposium' in collaboration with Aalborg University, from iGuzzini with 'Together we Light' in 4 capital cities in Europe and from WE-EF their global customer event 'The future of urban spaces'.

Strategic focus areas

People and culture

Bodil Sonesson, CEO and President

The recruitment and retention of valuable people and the development of leaders is critical and we expand our execution of our HR strategy in two new areas to respond to these demands; leadership principles and diversity and inclusion, two very important topics for our future health.

Innovation

Investments in innovation for connectivity and luminaire solutions is at our heart. During the quarter there are many innovations across many of our brands.

LTS created the nano-Optix wallwasher for a soft, fully homogeneous linear lighting film. The innovation provides the highest lighting quality leading to increased wellbeing, sharpened visibility and more comfortable working.

iGuzzini promoted 'Crystal' where the innovative optic combines aesthetic and performance functions providing visual comfort and high lighting efficiency.

Also, WE-EF introduced the innovative street lighting luminaire 'Apollo' with options to be fitted with solar panels to self-generate the power.

Sustainability

Our sustainability strategy makes good progress. Before the summer we established our carbon footprint baseline for our global operations and have now committed to the Science Based Targets Initiative meaning as a minimum the target of the 1.5 degree Paris Agreement. Further detail will follow in due course.

Outlook – strengthening and well positioned

Looking internally, indicators are positive. We have an improving business and a healthy order backlog. The strategic focus is clear and we are working well on many opportunities.

Looking externally, we are well positioned for when the markets return to a more stable state and are preparing for a longer period of uncertain times..

6,279

Order intake, MSEK

Order intake was MSEK 6,279 (5,872), an increase of +6.9% adjusted to +2.3% for currency effects of MSEK +272

5,999

Net sales, MSEK

Net sales were MSEK 5,999 (5,268), an increase of +13.9% adjusted to +9.0% for currency effects of MSEK +257

579

Operating profit, MSEK

Operating profit was MSEK 578.6 (545.3), an increase of +6.1% with an operating margin of 9.6 (10.4)%

408

Net profit, MSEK Earnings after tax were MSEK 407.5 (361.5)

2.31

Earnings per share, SEK Earnings per share were SEK 2.31 (2.03)

37

Operating cash flow, MSEK Cash flow from operating activities was MSEK 37.2 (460.7)

January-September

During the year the Group's performance and delivery has improved. Customer demand for deliveries has grown enabling higher net sales. However market activity levels have softened in recent months due to external conditions resulting in a lower order intake. The order backlog remains high at 2.3 BSEK.

Net sales have increased significantly and we have serviced this demand despite the negative impact from the supply chain. We see steady improvements in the supply chain component availability and logistics.

The Group's year to date order intake of 6,279 (5,872) MSEK shows a +6.9% increase, adjusted to +2.3% for currency effects of +272 MSEK. Currency effects have remained quarter on quarter consistent during the year.

The Group's year to date net sales of 5,999 (5,268) MSEK show a +13.9% increase, adjusted to +9.0% for currency effects of +257 MSEK.

The Group's operating profit for the year to date of 579 (545) MSEK shows a resilient and improving performance in an environment with many external challenges. The operating margin for the year to date is 9.6 (10.4)% and we expect further development when the challenges subside.

Operating cash flow in the period was 37.2 (460.7) MSEK with the variance due to a working capital increase of 726.8 (190) MSEK. For the year to date, inventories increase 418 MSEK and accounts receivables also increase 418 MSEK.

Financial items of 29.6 (58.7) MSEK include 14.6 (12.6) MSEK for IFRS16, net interest expense of 28.2 (29.8) MSEK and currency effects of positive 13.2 (negative 16.3) MSEK.

The tax expense in the period of 141.5 (125.1) MSEK results in a 25.8 (25.7)% tax rate.

Business areas

Net sales and operating profit by business area

	Net sales			Operating profit				Operating margin %
	Q3		Q1-3		Q3 Q1-3			Q3		Q1-3
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
Collection	946.3	763.8	2,824.1	2,337.4	81.2	55.8	260.5	194.9	8.6	7.3	9.2	8.3
Premium	718.6	629.3	2,033.1	1,896.0	115.3	97.8	274.3	257.5	16.0	15.5	13.5	13.6
Professional	267.0	262.0	760.5	761.0	5.9	21.9	24.9	69.4	2.2	8.4	3.3	9.1
Infrastructure	236.4	178.7	629.9	533.1	33.1	23.3	76.7	62.9	14.0	13.0	12.2	11.8
Eliminations	-87.0	-89.0	-249.0	-259.5	-	-	-	-	-	-	-	-
Results by business area			2,081.3 1,744.8 5,998.6 5,268.0		235.5	198.8	636.4	584.7	11.3	11.4	10.6	11.1
IFRS 16	-	-	-	-	2.4	1.6	8.8	6.6	-	-	-	-
Unallocated cost	-	-	-	-	-19.1	-16.2	-66.6	-46.0	-	-	-	-
Operating profit	-	-	-	-	218.8	184.2	578.6	545.3	10.5	10.6	9.6	10.4
Financial items	-	-	-	-	-4.4	-15.7	-29.6	-58.7	-	-	-	-
Profit before tax	-	-	-	-	214.4	168.5	549.0	486.6	-	-	-	-

Net sales per business area, MSEK Sales share per business area, %

Operating profit per business area, MSEK

Professional

Infrastructure

Collection

Collection is home to our brands with a global market footprint. All have an international product portfolio and are well-renowned in the global lighting designer and architect communities. They offer a wide product range with a focus on indoor and outdoor architectural applications.

Brands included are; ateljé Lyktan, iGuzzini, LED Linear and WE-EF with product development and manufacturing facilities in Sweden, Italy, Canada, China, Germany and Thailand. Seneco is also consolidated in this business area.

Business area order intake for the quarter of 840 (857) MSEK shows an organic decline of -9.8%. The year to date position is a record order intake of 2,820 (2,540) MSEK. Our businesses are well positioned in the global specification market where we see increased renovation demand.

Net sales for the quarter were 946 (764) MSEK, an organic increase of 14.9%, all businesses deliver the sales growth.

Operating profits for the quarter increased 45.5% to 81.2 (55.8) MSEK with a growth in operating margin to 8.6 (7.3)%. Year to date operating margins remain ahead of the comparable period at 9.2 (8.3)%.

Examples of great projects secured during the quarter were; The Pier Hotel, Gothenburg Sweden with 5 hand-crafted luminaires in each room from atelje-Lyktan, Topkapi Palace Museum, Istanbul Turkey from iGuzzini and the Botanic Garden project, Muscat Oman with LED Linear.

Collection	Q3, 2022	Q3, 2021	Q1-3, 2022	Q1-3, 2021
Net sales	946.3	763.8	2,824.1	2,337.4
(of which, intercompany sales)	(37.5)	(24.5)	(113.2)	(69.3)
Operating profit	81.2	55.8	260.5	194.9
Operating margin, %	8.6	7.3	9.2	8.3
Sales growth, %	23.9	-0.7	20.8	2.2
Sales growth, adjusted for exchange rate differences , %	14.9	0.2	13.8	6.7
Growth in operating profit, %	45.5	7.3	33.7	81.6

946

Net sales, MSEK

81

Operating profit, MSEK

8.6

Premium

Premium focuses on the European market and European-based global customers. Our Premium brands work closely with specifiers and partners to deliver premium projects, often with bespoke solutions. The majority of sales are related to indoor applications and there is also an outdoor offering for specific markets.

Brands included are Fagerhult and LTS with product development and manufacturing facilities in Sweden, Germany and China. Organic Response is also consolidated in this business area.

Business area order intake for the quarter of 609 (637) MSEK shows an organic decline of -7.8%. The year to date position remains ahead of last year.

Net sales for the quarter were 719 (629) MSEK, an organic growth of +8.7% and the quarterly the operating profit was 115.3 (97.8) MSEK. The 17.9% increase in operating profit lifted the operating margin to a high of 16.0 (15.5)%.

Examples of significant projects secured during the quarter from Fagerhult are; the Greenhouse, Stockholm a Re:furbish project with Organic Response connectivity and in Denmark an outdoor project for 2100 Evolume 75 with connectivity socket to replace the conventional road and street lighting luminaires.

Premium	Q3, 2022	Q3, 2021	Q1-3, 2022	Q1-3, 2021
Net sales	718.6	629.3	2,033.1	1,896.0
(of which, intercompany sales)	(17.8)	(32.8)	(48.6)	(105.7)
Operating profit	115.3	97.8	274.3	257.5
Operating margin, %	16.0	15.5	13.5	13.6
Sales growth, %	14.2	10.1	7.2	2.3
Sales growth, adjusted for exchange rate differences , %	8.7	10.4	3.3	4.7
Growth in operating profit, %	17.9	46.4	6.5	56.6

719

Net sales, MSEK

115

Operating profit, MSEK

16.0

Professional

Professional focuses mainly on indoor applications for local and neighbouring markets. The brands work closely together with local partners on project specifications to deliver full and complete solutions. Local production and product development allows for tailored solutions with bespoke products delivered within short lead times.

Brands included are; Arlight, Eagle and Whitecroft, with product development and manufacturing facilities in Turkey, Australia and the UK.

Business area order intake for the quarter of 172 (209) MSEK, shows an organic decline of -14.8%. The Turkish Lira remains very weak and the situation in the UK market with high political and economic uncertainty has a negative impact.

Net sales for the quarter were 267 (262) MSEK, an organic increase of +4.7%.

In the quarter the operating profit was 5.9 (21.9) MSEK and the operating margin was 2.2 (8.4)%. Our Turkish business continues to deliver growth and increased profitability. The situation in the UK and Australia remain and we are intensively working on the improvement programs.

The results remain below expectations.

Professional	Q3, 2022	Q3, 2021	Q1-3, 2022	Q1-3, 2021
Net sales	267.0	262.0	760.5	761.0
(of which, intercompany sales)	(18.2)	(23.5)	(56.7)	(62.6)
Operating profit	5.9	21.9	24.9	69.4
Operating margin, %	2.2	8.4	3.3	9.1
Sales growth, %	1.9	18.7	-0.1	21.2
Sales growth, adjusted for exchange rate differences , %	4.7	17.7	2.1	26.1
Growth in operating profit, %	-73.1	108.6	-64.1	190.4

267

Net sales, MSEK

6

Operating profit, MSEK

2.2

Infrastructure

Infrastructure provides lighting solutions for environments with specific requirements for installation, durability and robustness. The companies are worldleading in their areas and highly experienced in finding the best solutions for every project and customer. The majority of their sales are within Europe with some global installations.

Brands included are; Designplan, i-Valo and Veko, with product development and manufacturing facilities in UK, Finland and the Netherlands.

Business area order intake for the quarter was a record 270 (192) MSEK and shows an organic growth of +34.9%.

Net sales for the quarter were 236 (179) MSEK, an organic growth of +27.0% with the majority of the growth coming from the Netherlands followed by the UK.

Operating profits were 33.1 (23.3) MSEK and the operating margin was a strong 14.0 (13.0)%.

During the quarter the significant and prestigious projects won were in the rail transport segment with Designplan for; Birmingham New Street and Bristol Temple Meads stations. Also, Veko secured its first large project in Sweden.

Infrastructure	Q3, 2022	Q3, 2021	Q1-3, 2022	Q1-3, 2021
Net sales	236.4	178.7	629.9	533.1
(of which, intercompany sales)	(13.6)	(8.2)	(30.5)	(21.9)
Operating profit	33.1	23.3	76.7	62.9
Operating margin, %	14.0	13.0	12.2	11.8
Sales growth, %	32.3	-10.6	18.2	-3.9
Sales growth, adjusted for exchange rate differences , %	27.0	-10.4	13.4	-0.5
Growth in operating profit, %	42.1	-20.5	21.9	-15.3

236

Net sales, MSEK

33

Operating profit, MSEK

14.0

Financial position

The Group's equity/assets ratio at the end of the reporting period was 50.7 (47.9)%. Cash and bank balances at the end of the period were 1,063 (1,618) MSEK and consolidated equity was 6,682 (6,055) MSEK.

Operating cash flow was 85.3 (201.8) MSEK. The shortfall compared to the prior year was due to the growth and higher inventories to protect service levels, see earlier comments. The net debt at the end of the period is 3,168 (2,837) MSEK and includes 743 (730) MSEK relating to IFRS16 accounting.

Pledged assets and contingent liabilities amounted to 16.1 (17.7) MSEK and 8.8 (6.5) MSEK respectively.

Investments

The Group's net investments in non-current assets was 109.4 (90.8) MSEK. The figure does not include investments in subsidiaries, which were 0 (253,6) MSEK and this sum includes the acquisition of non-controlling interest.

Employees

The average number of employees during the period was 4,072 (4,213).

Parent company

AB Fagerhult's operations comprise Group Management, financing and business development activities. The profit after financial items was 993.8 (110.6) MSEK. The number of employees during the period was 16 (14).

Accounting principles

The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual accounts Act. The information for the interim period on pages 1-17 is an integral part of this financial report. The Parent Company's interim report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.

Applied accounting principles are unchanged in comparison with those described in Fagerhult's annual report for the financial year 2021.

Risks and uncertainties

The Group's significant risks and uncertainties consist primarily of business risks, and financial risks associated with currencies and interest rates. Through the company's international operations, the Fagerhult Group is subject to financial exposure arising from currency fluctuations as well as the regionalised uncertainty of political situations.

The most prominent risks, however, are currency risks arising from export sales and imports of raw materials and components. This exposure is reduced by hedging the flow of sensitive currencies, based on individual assessment. Currency risk also arises in the translation of foreign net assets and earnings.

For more information about the company's risks, refer to the 2021 Annual Report and the section on risks on the Group's website. In addition to the risks described in the company's Annual Report and the risks linked to Covid, the supply chain disruption and the effects from the situation in Ukraine, no other significant risks are considered to have arisen.

Nomination committee

AB Fagerhult has a Nomination Committee comprising a representative of each of the four largest shareholders or owners in terms of number of votes plus the Chairman of the Board, although this position is without the right to vote.

The Nomination Committee is to be formed after the Chairman of the Board has identified the four largest shareholders in the Company in terms of the number of votes that are to make up the Nomination Committee along with the Chairman. The identity of these shareholders is to be based on the shareholders' register and list of nominees maintained by Euroclear Sweden AB and refer to shareholders registered under their own names or as members of an owner group as per 31 August 2022.

It shall not be necessary to change the composition of the Nomination Committee if only marginal changes in the ownership of shares occur after this control date. If one of the four largest shareholders waives their right to appoint a representative, this right is then transferred to the next shareholder that has the largest shareholding of the shareholders not identified as one of the four largest shareholders on the same date. The mandate period of the Nomination Committee is until a new Nomination Committee is appointed.

The Largest Shareholders as at 31 August 2022

		Share capital and
Name	No. of shares	voting rights,%
Investment AB Latour	84,708,480	47.8%
Swedish National Pension Fund	14,384,861	8.1%
Nordea funds	7,916,400	4.5%
BNP Paribas SEC Services	7,438,028	4.2%
Lannebo funds	6,985,959	3.9%
The Svensson, family, foundation and company	4,805,388	2.7%
ING Luxembourg SA	4,015,000	2.3%
Swedbank funds	3,948,618	2.2%

The Nomination Committee consists of the following individuals together with the names of the shareholders they represent; Jan Svensson as Chairman of the Board of AB Fagerhult, Johan Hjertonsson, Investment AB Latour, Jan Särlvik, Fjärde AP-Fonden, Björn Henriksson, Nordea Funds and Charlotta Faxen, Lannebo Funds.

Questions regarding the nomination committee shall be addressed to the Group's CFO Michael Wood, michael.wood@fagerhultgroup.com

Habo, October 28th 2022 AB Fagerhult (publ.) 556110-6203

Bodil Sonesson President and CEO

An investor webcast following the Quarter 3 Report 2022 will be held on 28 October 2022 at 09:30 CET. A link to the webcast and management presentation will be available on http://www.fagerhultgroup.com/investors

In 2023, interim reports will be submitted on 22 February, 25 April, 20 July and 27 October and the Annual General Meeting will be held on 25 April.

For more information contact:

Bodil Sonesson, CEO, +46 722 23 76 02 or Michael Wood, CFO, +46 730 87 46 47

Review report

AB Fagerhult (publ.) Corp. id. 556110-6203

Introduction

We have reviewed the condensed interim financial information (interim report) of AB Fagerhult (publ.) as of 30 September 2022 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, 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.

Stockholm 28 October 2022

KPMG AB KPMG AB

Mathias Arvidsson Jenny Jansson Authorized Public Accountant Authorized Public Accountant Auditor in charge

Group

Condensed financial statements

Income statement

	2022	2021	2022	2021	2021/2022	2021
	Q3	Q3	Q1-3	Q1-3	Oct-Sep	Jan-Dec
	3 months	3 months	9 months	9 months	12 months	12 months
Net sales	2,081.3	1,744.8	5,998.6	5,268.0	7,818.1	7,087.5
Cost of goods sold	-1,309.2	-1,100.6	-3,780.0	-3,299.2	-4,947.8	-4,467.0
Gross profit	772.1	644.2	2,218.6	1,968.8	2,870.3	2,620.5
Selling expenses	-386.6	-335.8	-1,157.1	-1,043.3	-1,551.6	-1,437.8
Administrative expenses	-185.4	-154.5	-539.0	-458.3	-701.9	-621.2
Other operating income	18.7	30.3	56.1	78.1	122.9	144.9
Operating profit	218.8	184.2	578.6	545.3	739.7	706.4
Financial items	-4.4	-15.7	-29.6	-58.7	-55.0	-84.1
Profit before tax	214.4	168.5	549.0	486.6	684.7	622.3
Tax	-57.5	-40.9	-141.5	-125.1	-169.1	-152.7
Net profit for the period	156.9	127.6	407.5	361.5	515.6	469.6
Net profit for the period attributable to shareholders of the Parent Company	156.8	127.1	407.4	357.5	515.4	465.5
Net profit for the period attributable to Non-controlling interests	0.1	0.5	0.1	4.0	0.2	4.1
Sum	156.9	127.6	407.5	361.5	515.6	469.6
Earnings per share, based on net profit for the period attributable to the
shareholders of the Parent Company
Earnings per share before dilution, SEK	0.89	0.72	2.31	2.03	2.93	2.64
Earnings per share after dilution, SEK	0.89	0.72	2.31	2.03	2.93	2.64
Average number of outstanding shares before dilution, thousands	176,147	176,147	176,147	176,147	176,147	176,147
Average number of outstanding shares after dilution, thousands	176,147	176,147	176,147	176,147	176,147	176,147
Number of outstanding shares, thousands	176,147	176,147	176,147	176,147	176,147	176,147
STATEMENT OF COMPREHENSIVE INCOME
Net profit for the period	156.9	127.6	407.5	361.5	515.6	469.6
Other comprehensive income
Items which may not be reclassified in the income statement:
Revaluation of pension plans	-6.2	-	-1.6	2.7	4.0	8.3
Items which may be reclassified in the income statement:
Translation differences	83.0	24.2	282.5	109.3	331.5	158.3
Other comprehensive income for the period, net after tax	76.8	24.2	280.9	112.0	335.5	166.6
Total comprehensive income for the period	233.7	151.8	688.4	473.5	851.1	636.2
Total comprehensive income attributable to shareholders of the Parent Company	233.7	151.5	688.4	468.4	850.9	630.9
Total comprehensive income attributable to Non-controlling interests	-	0.3	-	5.1	0.2	5.3
Sum	233.7	151.8	688.4	473.5	851.1	636.2

Balance sheet

	30 Sep	30 Sep	31 Dec
	2022	2021	2021
Intangible assets	5,997.5	5,731.9	5,740.1
Tangible fixed assets	2,407.1	2,342.1	2,376.9
Financial assets	234.7	229.2	216.2
Inventories	1,612.5	1,196.2	1,194.1
Accounts receivable - trade	1,614.1	1,315.4	1,196.1
Other non-interest-bearing current assets	241.5	199.7	187.8
Cash and cash equivalents	1,062.7	1,618.0	1,741.5
Total assets	13,170.1	12,632.5	12,652.7
Equity	6,681.9	6,055.1	6,218.7
Long-term interest-bearing liabilities	3,938.1	3,912.7	3,774.5
Long-term non-interest-bearing liabilities	534.2	550.1	503.6
Short-term interest-bearing liabilities	292.3	541.8	569.8
Short-term non-interest-bearing liabilities	1,723.6	1,572.8	1,586.1
Total equity and liabilities	13,170.1	12,632.5	12,652.7

Cash flow statement

	2022	2021	2022	2021	2021/2022	2021
	Q3	Q3	Q1-3	Q1-3	Oct-Sep	Jan-Dec
	3 months	3 months	9 months	9 months	12 months	12 months
Operating profit	218.8	184.2	578.6	545.3	739.7	706.4
Adjustments for non-cash items	149.6	108.3	391.1	326.3	499.9	435.1
Financial items	-10.2	-12.6	-36.0	-39.2	-45.0	-48.2
Tax paid	-47.3	-42.2	-169.7	-181.7	-205.0	-217.0
Funds contributed from operating activities before change in working	310.9	237.7	764.0	650.7	989.6	876.3
capital
Change in working capital	-225.6	-35.9	-726.8	-190.0	-610.6	-73.8
Cash flow from operating activities	85.3	201.8	37.2	460.7	379.0	802.5
Cash flow from investing activities	-40.8	-162.1	-131.6	-325.7	-72.7	-266.8
Cash flow from financing activities	-406.3	-49.0	-683.9	-179.8	-974.2	-470.1
Cash flow for the period	-361.8	-9.3	-778.3	-44.8	-667.9	65.6
Cash and cash equivalents at beginning of period	1,403.2	1,617.9	1,741.5	1,624.0	1,618.0	1,624.0
Translation differences in cash and cash equivalents	21.3	9.4	99.5	38.8	112.6	51.9
Cash and cash equivalents at end of period	1,062.7	1,618.0	1,062.7	1,618.0	1,062.7	1,741.5

Key ratios and data per share

	2022	2021	2022	2021	2021/2022	2021
	Q3	Q3	Q1-3	Q1-3	Oct-Sep	Jan-Dec
	3 Months	3 Months	9 months	9 months	12 months	12 months
Sales growth, %	19.3	2.6	13.9	3.0	12.2	4.0
Growth in operating profit, %	18.8	175.7	6.1	136.0	14.4	112.5
Growth in profit before tax, %	27.2	447.1	12.8	241.7	22.1	187.2
Operating margin, %	10.5	10.6	9.6	10.4	9.5	10.0
Profit margin, %	10.3	9.7	9.2	9.2	8.8	8.8
Cash liquidity, %	52.7	76.5	52.7	76.5	52.7	80.8
Net debt/EBITDA ratio	2.43	2.39	2.64	2.42	2.71	2.27
Equity/assets ratio, %	50.7	47.9	50.7	47.9	50.7	49.1
Capital employed, MSEK	10,912	10,510	10,912	10,510	10,912	10,563
Return on capital employed, %	8.5	7.1	7.5	7.1	7.2	6.9
Return on equity, %	9.4	8.4	8.4	8.1	8.1	7.8
Net debt, MSEK	3,168	2,837	3,168	2,837	3,168	2,603
Gross investment in non-current assets, MSEK	35.0	32.5	109.4	90.8	168.1	149.5
Net investment in non-current assets, MSEK	35.0	32.5	109.4	90.8	168.1	149.5
Depreciation/amortisation/impairment of non-current assets, MSEK	106.9	112.7	322.3	334.6	428.6	440.9
Number of employees	4,080	4,189	4,072	4,213	4,116	4,237
Equity per share, SEK	37.93	34.38	37.93	34.38	37.93	35.30
Number of outstanding shares, thousands	176,147	176,147	176,147	176,147	176,147	176,147

For more information about the Key ratios and the definitions applied, please refer to AB Fagerhult's website under "Investor/Financial data/Financial glossary." The website also includes the definition of any Alternative Performance Measures used whereas this report details the financial aspect to these.

Changes in equity

			Attributable to shareholders of the Parent Company			Total equity
		Other contributed		Retained	Non controlling
	Share capital	capital	Reserves	earnings	interest
Equity at 1 January 2021	100.2	3,194.6	-455.3	2,924.9	38.2	5,802.6
Net profit for the period				357.5	4.0	361.5
Other comprehensive income for the period			108.2	2.7	1.1	112.0
Total comprehensive income for the period			108.2	360.2	5.1	473.5
Performance share plan				-3.7		-3.7
Dividend paid				-88.1		-88.1
Equity at 30 September 2021	100.2	3,194.6	-347.1	3,107.8	-0.4	6,055.1
Equity at 1 January 2022	100.2	3,194.6	-298.2	3,222.3	-0.2	6,218.7
Net profit for the period				407.4	0.1	407.5
Other comprehensive income for the period			282.5	-1.6	-	280.9
Total comprehensive income for the period			282.5	405.8	0.1	688.4
Performance share plan				3.8		3.8
Dividend paid				-229.0		-229.0
Equity at 30 September 2022	100.2	3,194.6	-15.7	3,402.9	-0.1	6,681.9

Parent company

Condensed financial statements

Income statement

	2022	2021	2022	2021	2021/2022	2021
	Q3	Q3	Q1-3	Q1-3	Oct-Sep	Jan-Dec
	3 Months	3 Months	9 months	9 months	12 months	12 months
Net sales	10.7	7.4	29.4	21.7	36.4	28.7
Administrative expenses	-19.0	-15.6	-64.7	-49.8	-86.0	-71.1
Operating profit	-8.3	-8.2	-35.3	-28.1	-49.6	-42.4
Income from shares in subsidiaries	-	-2.7	908.0	86.3	908.4	86.7
Financial items	46.7	18.4	121.1	52.4	137.4	68.7
Profit before appropriations and tax	38.4	7.5	993.8	110.6	996.2	113.0
Group contributions received	-	-	-	-	279.0	279.0
Tax	-8.6	-1.6	-18.4	-4.5	-76.8	-62.9
Net profit	29.8	5.9	975.4	106.1	1,198.4	329.1

Balance sheet

	30 Sep	30 Sep	31 Dec
	2022	2021	2021
Financial assets	7,777.8	7,020.6	7,304.1
Other non interest bearing receivables	76.7	95.6	25.4
Cash & Bank	594.3	965.1	1,050.9
Total assets	8,448.8	8,081.3	8,380.4
Equity	4,900.6	3,929.6	4,152.8
Long-term interest bearing liabilities	3,009.3	2,946.2	2,828.6
Long-term non interest bearing liabilities	10.0	6.4	8.3
Short-term interest bearing liabilities	495.4	1,169.9	1,360.6
Short-term non interest bearing liabilities	33.5	29.2	30.1
Total Equity and Liabilities	8,448.8	8,081.3	8,380.4

Changes in equity

	Share	Statutory	Retained
	capital	reserve		earnings Total equity
Equity at 1 January 2021	100.2	159.4	3,654.1	3,913.7
Net profit for the period			106.1	106.1
Performance share program			-2.1	-2.1
Dividend paid			-88.1	-88.1
Equity at 30 September 2021	100.2	159.4	3,670.0	3,929.6
Equity at 1 January 2022	100.2	159.4	3,893.2	4,152.8
Net profit for the period			975.4	975.4
Performance share plan			1.4	1.4
Dividend paid			-229.0	-229.0
Equity at 30 September 2022	100.2	159.4	4,641.0	4,900.6

Net sales, MSEK Operating profit, MSEK

Operating margin, % Earnings per share, SEK

Operating cashflow, MSEK Net debt and Net debt EBITDA ratio

Key ratios and data per share

					2021/2022
					Oct-Sep
	2018	2019	2020	2021	12 months
Net sales, MSEK	5,621.0	7,844.9	6,816.3	7,087.5	7,818.1
Operating profit, MSEK *	705.8	794.8	332.5	706.4	739.7
Profit before tax, MSEK *	666.7	695.7	216.7	622.3	684.7
Earnings per share, SEK *	4.39	3.32	3.21	2.64	2.93
Sales growth, % *	8.7	39.6	-13.1	4.0	12.2
Growth in operating profit, % *	4.1	12.6	-58.2	112.5	14.4
Growth in profit before tax, % *	2.2	4.3	-68.9	187.2	22.1
Operating margin, % *	12.6	10.1	4.9	10.0	9.5
Net debt/EBITDA ratio *	2.02	2.93	3.16	2.27	2.71
Equity/assets ratio, % *	32.2	42.0	47.3	49.1	50.7
Capital employed, MSEK *	5,010	10,372	10,238	10,563	10,912
Return on capital employed, % *	14.8	10.8	3.5	6.9	7.2
Return on equity, % *	25.0	13.5	10.1	7.8	8.1
Net debt, MSEK *	2,073	3,737	2,812	2,603	3,168
Net investment in non-current assets, MSEK *	123.3	242.7	183.6	149.5	168.1
Depreciation/amortisation/impairment of non-current assets, MSEK *	320.3	478.8	558.4	440.9	428.6
Number of employees	3,384	4,465	4,419	4,237	4,116

* Impacted by IFRS 16 from 2019-01-01

Net sales and operating profit, MSEK