Elanders

Quarterly Report • Oct 17, 2022

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ELANDERS | QUARTERLY REPORT JANUARY – SEPTEMBER 2022

Delivering sustainable solutions

FROM END TO END AND BEYOND

Elanders is a global logistics company with a broad range of services of integrated solutions in supply chain management.

The business is mainly run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. Sustainability aspects permeate Elanders' work on all levels. Essentially, Elanders' operations are all about optimizing the customers' flow of goods in the best possible way while minimizing costs and climate impact.

The Group has approximately 7,000 employees and operates in some 20 countries on four continents. The most important markets are China, Germany, Singapore, Sweden, the United Kingdom and the USA. Major customers are active in the areas Automotive, Electronics, Fashion & Lifestyle, Health Care & Life Science and Industrial.

Contents

• 3 Bulletpoints
• 4 Comments by the CEO
• 5 Group
• 9 Parent Company
• 9 Other Information
• 10 Auditor's Report
• 11 Consolidated Financial Statements
• 20 Quarterly Data
• 21 Five Year Overview
• 23 Reconciliation Alternative Performance Measures
• 26 Parent Company's Financial Statements
• 27 Financial Definitions

This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.

Further information can be found on Elanders' website www.elanders.com or requested via e-mail info@elanders.com. Questions concerning this report can be addressed to:

Phone: +46 31 750 07 50 Phone: +46 31 750 07 50

Magnus Nilsson Andréas Wikner

President and CEO Chief Financial Officer

Elanders AB (publ)

2 ELANDERS | Q3 2022

(Company ID 556008-1621) Flöjelbergsgatan 1 C, 431 35 Mölndal, Sweden Phone: +46 31 750 00 00

This information is information that Elanders AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 13:00 CET on 17 October 2022.

NET SALES, MSEK

NETTOOMSÄTTNING, MKR

ADJUSTED EBITA, MSEK

OPERATING CASHFLOW, MSEK

EBIT, MKR

EBITA, MKR

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January – September 2022

• Net sales increased to MSEK 10,875 (8,369), which corresponded to organic growth of six percent, excluding acquisitions and using unchanged exchange rates. Bergen Logistics, that was acquired in the end of last year, had a strong organic growth in USA which resulted in high double-digit growth figures.
• EBITA increased to MSEK 666 (413). The result contained one-off items that had a positive effect of about net MSEK 32, mainly as a result from a reevaluation of shares in associated companies in connection with a merger in the second quarter. Excluding one-off items, the EBITA margin was 5.8 (4.9) percent, which equaled an improvement in the result by 53 percent.
• The result before tax increased to MSEK 485 (301), which was an improvement of 50 percent, excluding one-off items.
• The net result increased to MSEK 347 (211), corresponding to SEK 9.42 (5.84) per share.
• Operating cash flow for the period increased to MSEK 715 (575), of which purchase prices for acquisitions was MSEK –44 (–113).

Third quarter 2022

• Net sales increased to MSEK 3,979 (2,865), which corresponded to organic growth of twelve percent, excluding acquisitions and using unchanged exchange rates. Bergen Logistics continued to have strong organic growth in USA resulting in high double-digit growth figures.
• EBITA increased to MSEK 216 (126). The result included a one-off item that had a negative effect of about MSEK 8. The one-off item related to additional consideration for an acquisition that has developed better than expected. Excluding the one-off item, the EBITA margin was 5.6 (4.4), which equaled an improvement in the result of 76 percent.
• The result before tax increased to MSEK 150 (88) which was an improvement of 80 percent, excluding the one-off item.
• The net result increased to MSEK 115 (57), corresponding to SEK 3.10 (1.54) per share.
• Operating cash flow increased to MSEK 229 (208), of which purchase prices for acquisitions was MSEK –44 (–67).

	January – September		Third quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales, MSEK	10,875	8,369	3,979	2,865	14,240	11,733
EBITDA, MSEK	1,403	1,012	466	328	1,859	1,468
EBITA, MSEK 1)	666	413	216	126	894	641
EBITA adjusted, MSEK 1) 3)	635	414	224	127	879	658
EBITA-margin, % 1)	6.1	4.9	5.4	4.4	6.3	5.5
EBITA-margin adjusted, % 1) 3)	5.8	4.9	5.6	4.4	6.2	5.6
Result before tax, MSEK	485	301	150	88	666	482
Result after tax, MSEK	347	211	115	57	466	331
Earnings per share, SEK	9.42	5.84	3.10	1.54	12.70	9.12
Operating cash flow, MSEK	715	575	229	208	36	–105
Net debt, MSEK	7,227	3,253	7,227	3,253	7,227	5,249
Net debt/EBITDA ratio, times 2)	3.9	2.4	3.9	2.5	3.9	3.6
Net debt/EBITDA ratio excl. IFRS 16, times 2)	3.2	2.0	3.3	2.1	3.1	3.3

FINANCIAL OVERVIEW

1) EBITA refers to Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.

2) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12-month period).

3) One-off items have beend excluded in the adjusted measures.

COMMENTS BY THE CEO

Despite a very complex environment we delivered a result that is clearly better than last year. Our strategy to continually broaden our customer base to more industries and increase our geographic reach has created a more robust Elanders better equipped to handle fluctuations in demand.

Business area Supply Chain Solutions improved considerably over the same quarter last year. This was largely due to the strong growth in customer segment Fashion & Lifestyle in the North American market through Bergen Logistics, that we acquired in the end of last year. At the same time, demand in Europe in this segment was stable. Demand in Electronics in Europe was still good, but it varies among the different product groups. Demand for TVs, household appliances and printers has dropped dramatically while it grew for heat pumps and almost every product that has to do with heating and reducing electricity consumption. Regarding Asia, we continue to see a decline in demand from our customers for value-added services. We are also affected negatively by the COVID-19 lockdowns in China. On the other hand net sales in the component buying and selling business has grown, but at a lower profit. Further, Automotive and Industrial are the customer segments signaling the most problems with material and component flows. Our customers within Automotive are still having full order books. Many car buyers have to wait up to one and half years for their new cars. Supply Chain Solutions on the whole is experiencing a dramatic rise in demand for warehousing various products which indicates a general decline in demand. In the short term this is favorable for a logistics company like Elanders that manages customers' products and inventory because it entails greater use of our facilities. The growing portion of online shopping is continuing to drive growth in logistics services. It's also an area where we need to help our customers and get them to use more sustainable alternatives. For instance, with our geographic reach we can offer customers warehousing, delivery and return management close to the recipients of their products. For customers this reduces both their environmental impact and shortens delivery times.

Business area Print & Packaging Solutions showed a definite upswing in the third quarter. Paper supply is stabilizing, which is positive, even though the prices have increased. On the other hand, in several cases we have succeeded in raising prices in customer contracts to compensate for higher costs. During the quarter we experienced a return in demand for photobooks, calendars and other similar products. The implementation of our latest online customer has gone according to plan.

In general, the market continues to be very challenging with relatively low visibility concerning future demand. High inflation, interest rate hikes and the high price of energy impacts consumption. Many countries are implementing different measures to ease the negative effects. A positive sign we picked up in September was some improvement in the global supply chain and a significant reduction in air and sea freight prices. A downturn in general demand can in some cases even favor a logistics company like Elanders since it entails a greater need to store products.

Magnus Nilsson President and Chief Executive Officer

GROUP

Elanders offers a broad range of services and total solutions in supply chain management. The business is run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has approximately 7,000 employees and operates in some 20 countries on four continents. Our most important markets are China, Germany, Singapore, Sweden, the United Kingdom and the USA. Our major customers are active in the areas Automotive, Electronics, Fashion & Lifestyle, Health Care & Life Science and Industrial.

NET SALES AND RESULT

January – September

Net sales increased by MSEK 2,506 to 10,875 (8,369) compared to the same period last year. Cleared of exchange rate fluctuations and acquisitions, net sales increased by six percent. Organic growth was primarily generated by the European division of Supply Chain Solutions. Demand from customers continued to be good during the period even if some customers in Automotive and Industrial still suffered disruptions in production due to the shortage of components and raw material. Bergen Logistics, that was acquired in the end of last year, had a strong organic growth resulting in high double-digit growth figures, but this is not reported as organic growth for the Group.

EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions, increased by MSEK 253 to MSEK 666 (413). A change in the exchange rate compared to the same period last year had a positive effect on EBITA by about MSEK 28. EBITA included some positive one-off items of about net MSEK 32. These were mainly a reevaluation of the holding in associated company LOGworks, which affected the result in the second quarter positively by around MSEK 50. A provision for additional consideration in relation to an acquisition that has performed better than expected had a negative effect of about net MSEK 8. The rest was restructuring and acquisition costs.

Excluding one-off items, the improvement in the result compared to the previous year was primarily generated by the acquisitions made in Supply Chain Solutions in the second half of last year. Air & Sea operations in Europe in the same business area also contributed to improving the result. Component and material shortages, price hikes in general, high levels of sick leave at the beginning of the year and the war in Ukraine have had a negative effect on the result and profitability as well as China's zero tolerance concerning COVID-19 outbreaks.

Third quarter

Net sales increased by MSEK 1,114 to 3,979 (2,865) compared to the same period last year. Cleared of exchange rate fluctuations and acquisitions, net sales increased by twelve percent. Organic growth was primarily generated by the European division of Supply Chain Solutions but also by some of the component buying and selling business in Asia to customers in Electronics. Even Bergen Logistics, that was acquired in the end of last year, had strong organic growth resulting in high double-digit growth figures. Within Automotive

and Industrial some customers continued to have disruptions in their production due to material and component shortages.

Demand during the quarter has been very good but varied from month to month, between different product groups and geographically. Some customers have experienced a decline in demand from consumers, for example in TVs, household appliances and printers. High prices for electricity, food and fuel are believed to be the cause of this. At the same time demand grew for heat pumps and other equipment that has to do with heating. In general demand from Group customers in Europe continues to be good, it's strong in North America but slightly declining in Asia.

EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions, increased by MSEK 90 to MSEK 216 (126). A change in the exchange rate compared to the same period last year had a positive effect on EBITA by about MSEK 12. EBITA included a negative one-off item of about MSEK 8. This related to a provision for additional consideration in relation to an acquisition that has performed better than expected.

Supply Chain Solutions

Supply Chain Solutions is Elanders' largest business area and makes up more than three-fourths of the Group. Within the business area Elanders offers its customers tailor-made solutions for every section of the supply chain. Our range of services includes taking responsibility for and optimizing customers' material and information flows everything from procurement and purchasing to after sales service, sometimes combined with warehousing.

Net sales grew organically in business area Supply Chain Solutions by eleven percent during the first nine months and 15 percent in the quarter, excluding acquisitions and using unchanged exchange rates. Organic growth was driven in part by new business and in part by higher shipping rates for freight forwarding volumes. During the third quarter the tide turned and freight prices from Asia to the rest of the world dropped dramatically. However, they still remain higher than before the pandemic.

Component shortages continued to create disruptions in production for customer segments Automotive and Industrial but to a lesser extent than previously. Disturbances lead to irregular capacity utilization at Elanders when customers shut down or added shifts on short notice. This, in combination with higher energy and fuel prices and higher prices in general, put some pressure on profitability. During the period Elanders has been able to raise some prices in certain customer contracts that partially compensated for higher costs.

A decline in demand for TVs, household appliances and printers has become apparent while it grew for heat pumps and almost every product that has to do with heating and reducing electricity consumption. General anxiety concerning higher costs of living such as higher electricity prices and interest rates as well as the war in Ukraine are believed to be behind this trend. It can also be discerned in an increase of warehousing levels for some Group customers and there is a considerable demand for storage space when retail cannot take in any more products.

Despite the challenges in the current market business area Supply Chain Solutions clearly performed better than in the same quarter last year. This was largely due to high demand and growth in Fashion & Lifestyle on the North American market as well as in Europe. New acquisitions, such as Bergen Logistics, developed positively during the period and Bergen Logistics generated high double-digit growth figures. Stable demand in customer segments Electronics and Healthcare in Europe has also contributed to the positive result development.

	January – September		Third quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales, MSEK	9,008	6,520	3,325	2,292	11,692	9,204
EBITDA, MSEK	1,251	846	412	277	1,604	1,200
EBITA, MSEK 1)	628	350	200	112	790	512
EBITA adjusted, MSEK 1) 2)	588	351	200	113	766	529
EBITA-margin, %	7.0	5.4	6.0	4.9	6.8	5.6
EBITA-margin adjusted, % 1) 2)	6.5	5.4	6.0	4.9	6.6	5.8
Average number of employees	5,884	4,917	5,993	4,937	5,766	5,041

1) EBITA refers to Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.

2) One-off items have beend excluded in the adjusted measures.

Print & Packaging Solutions

Through its powerful innovation and global presence business area Print & Packaging Solutions offers costeffective solutions that can meet customers' every local and global need for printed material and packaging, often in combination with advanced order platforms on the Internet, value-added services and just-in-time deliveries.

In the third quarter, the business area recovered and there was also a recovery in the demand for photobooks, calendars and other similar products. Over the year, net sales have continued to decrease in the combined print and supply chain business of subscription boxes in USA. This is because, in 2021 a large customer began procuring shipping themselves instead of, as before, arranging it through Elanders. Excluding the subscription box business, organic net sales increased by close to ten percent.

The business area's result and profitability were affected negatively during the first half-year by higher material and electricity costs as well as customers' material and component shortages. This led to disturbances in production and supply chains at several of the business area's customers in Automotive and Industrial during the period, although the situation improved in the third quarter. During the period Elanders has been able to raise some prices in certain customer contracts that partially compensated for higher costs. The result also included a negative one-off item of

about MSEK 8 relating to additional consideration for an acquisition that has developed better than expected.

Implementation of the Group's new customer in online print, which was mentioned in the report for the second quarter, has gone according to plan. Annual net sales are estimated at MSEK 100 with an emphasis on the fourth quarter.

Otherwise work on optimizing the business area's production apparatus continues. Traditional offset capacity suited for long series is successively being replaced by digital print equipment that provides greater flexibility and is better suited to shorter series.

	January – September		Third quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales, MSEK	1,965	1,908	686	592	2,663	2,606
EBITDA, MSEK	185	191	66	60	302	308
EBITA, MSEK 1)	74	91	28	24	154	171
EBITA adjusted, MSEK 1) 2)	83	91	37	24	162	171
EBITA-margin, %	3.8	4.8	4.1	4.1	5.8	6.5
EBITA-margin adjusted, % 1) 2)	4.2	4.8	5.4	4.1	6.1	6.5
Average number of employees	1,336	1,211	1,339	1,274	1,331	1,237

1) EBITA refers to Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.

2) One-off items have beend excluded in the adjusted measures.

IMPORTANT EVENTS DURING THE PERIOD

The war in Ukraine

Russia invaded Ukraine in February 2022. Some of the Group's customers have subcontractors in Ukraine and Russia. These customers have therefore started to experience problems with their supply chain. At the same time, inflation has increased sharply and an energy crisis has emerged.

There is still a great deal of uncertainty about how long this will last and the extent of it. It is thus difficult to predict the exact impact in the coming year. Increased sanctions, scope of the war and electricity shortage could have a significant impact on the Group's operations.

The COVID-19 pandemic

The coronavirus, COVID-19, has since the beginning of 2020 quickly spread. The measures taken by different governments to limit the spread of the virus has impacted financial activities and the Group's business in different ways. Many Group customers have experienced major disturbances in supply chains, and this has affected both their and the Group's operations negatively. 2022 began with high sick leave rates in Europe, but then normalized at the end of the first quarter.

There is still a great deal of uncertainty regarding how long the COVID-19 pandemic will continue, which makes it difficult to predict the precise effect the next year. New outbreaks stemming from mutations and dramatic measures to limit spreading the virus can have a significant effect on Group business. Chinas zero tolerance policy regarding COVID-19 may also continue to affect the Group's business.

Positive impact on the result of some MSEK 50 from merger of associated company

In 2018, Elanders' subsidiary, LGI Logistics Group International GMBH, entered a strategic partnership with Adecco, whereby LGI divested 51 percent of the shares in its staffing firm LOGworks to Adecco Group Deutschland.

In May 2022, Elanders associate company LOGworks merged with ProServ, which was also controlled by Adecco, but together with the Michelin Group. In connection with the transaction, Elanders' shares in the merged company were measured at fair value. The valuation was carried out by an independent party. The reevaluation resulted in a non-recurring revenue of approximately SEK 50 million, which had a positive impact on the Elanders Group's operating result in the second quarter. The transaction does not have any effect on cash flow. After the merger, Elanders owns 14 percent of the shares in the merged company.

Semiconductor shortage

The current semiconductor shortage in some industries has had a negative impact on the Group's business. When shift patterns change on short notice it creates an uneven capacity utilization in production.

Acquisition of Bonds Worldwide Holdings Ltd

In July 2022 Elanders acquire all the shares in Bonds Worldwide Holdings Limited with subsidiary Bonds Worldwide Express Limited and Bonds Technical Couriers Limited (together "Bonds"). Bonds is a leading actor in Great Britain in special transportation and installation of advanced technical equipment. The company is privately owned and had net sales of around MGBP 5 in 2021 with good profitability. Bonds was consolidated into the Elanders Group as of July 1, 2022. The purchase price amounted to about MGBP 5 on a debt-free basis, excluding IFRS 16 effects from net debt. Most of the purchase price charged cash flow during the third quarter.

INVESTMENTS AND DEPRECIATION

January – September

Net investments for the period amounted to MSEK 180 (173), whereof purchase price regarding acquisitions of operations amounted to MSEK 44 (113). Depreciation, amortization and writedowns amounted to MSEK 804 (641).

Third quarter

Net investments for the quarter amounted to MSEK 98 (91), whereof purchase price regarding acquisitions of operations amounted to MSEK 44 (67). Depreciation, amortization and write-downs amounted to MSEK 273 (218).

FINANCIAL POSITION, CASH FLOW AND FINANCING

January – September

Operating cash flow for the period increased to MSEK 715 (575), of which purchase prices for acquisitions of operations amounted to MSEK –44 (–113).

Net debt increased by MSEK 1,987 to MSEK 7,227 compared to MSEK 5,249 at the beginning of the year. Changes in exchange rates and new leases contributed to the increase by MSEK 708 and MSEK 929 respectively. Leases primarily consisted of new long-term leases for logistic buildings. Net debt also includes debts related to put and call options measured at fair value. The increase in net debt includes changes in fair value for these options of slightly more than MSEK 200, primarily related to the positive development in Bergen Logistics. The change in fair value also includes the exchange rate translation effect.

Excluding the effects from IFRS 16 net debt amounted to MSEK 3,231 compared to MSEK 2,539 at the beginning of the year. The increase of MSEK 692 included MSEK 371 in changes in exchange rates. Financing is primarily in euro and US dollars and both of these currencies have become stronger against the Swedish krona during the year. Increased working capital also contributed to the increase in net debt.

Over a rolling 12-month period the net debt/EBITDA rate was 3.9 compared to 3.6 at the beginning of the year. The increase in the rate is primarily due to the signing of several new long-term leases. The new leases generate a somewhat skewed view of the net debt/ EBITDA rate. The entire leasing liability is reported directly while the EBITDA contribution is slight, particularly if the leases run for 10–15 years and especially in the beginning of the first year. Excluding the effects from IFRS 16 and acquisition costs and adjusted for proforma results for acquisitions and one-off items, the net debt/ EBITDA ratio was 3.1.

The Group's credit agreement contains financial covenants that must be met to secure the financing. The most important covenant is the net debt/EBITDA ratio that is calculated excluding IFRS 16 effects but adjusted for proforma results in acquisitions and excluding acquisition costs. This financial covenant was met by a good margin per the balance sheet date.

Several central banks have announced interest rate hikes, which are very likely to lead to increased interest costs in the future since Group financing is largely based on a floating interest rate.

Third quarter

Operating cash flow for the period increased to MSEK 229 (208), of which the purchase prices for acquisitions of operations amounted to MSEK –44 (–67).

Net debt increased by MSEK 923 to MSEK 7,227 compared to MSEK 6,304 at the beginning of the quarter. Changes in exchange rates and new leases contributed to the increase by MSEK 302 and MSEK 543 respectively. Leases primarily consisted of new long-term leases for logistic buildings. Net debt also includes debts related to put and call options measured at fair value. The increase in net debt includes changes in fair value for these options of approximately MSEK 60, primarily related to the positive development in Bergen Logistics. The change in fair value also includes the exchange rate translation effect.

Excluding the effects from IFRS 16 net debt amounted to MSEK 3,231 at the end of the quarter compared to MSEK 3,005 at the beginning of the quarter. The increase of MSEK 226 included MSEK 158 in changes in exchange rates. Financing is primarily in euro and US dollars and both of these currencies have become stronger against the Swedish krona during the year. A slight increase in working capital also contributed to the higher net debt level.

PERSONNEL

January – September

The average number of employees during the period was 7,233 (6,138), whereof 165 (149) in Sweden. At the end of the period the Group had 7,337 (6,234) employees, whereof 167 (147) in Sweden.

Third quarter

The average number of employees during the quarter was 7,345 (6,221) whereof 169 (148) in Sweden.

PARENT COMPANY

The parent company has provided intragroup services. The average number of employees during the period was 13 (10) and at the end of the period 12 (11).

OTHER INFORMATION

ELANDERS' OFFER

Elanders offers integrated and customized solutions for handling all or part of our customers' supply chain. The Group can take complete responsibility for complex and global deliveries that may include purchasing, storage, configuration, production and distribution. We also offer order management solutions, payment flows and aftermarket services for our customers.

The services are provided by business-minded employees who, with their expertise and aided by intelligent IT solutions, contribute to developing our customers' offers which are often totally dependent on efficient product, component and service flows as well as traceability and information. In addition to our offer to the B2B market the Group sells photo products directly to consumers via our own brands, fotokasten and myphotobook.

GOAL AND STRATEGY

Elanders' overall goal is to be a leader in global solutions in supply chain management with a world class integrated offer. Our strategy is to work in niches in each business area where the company can attain a leading position in the market. We will achieve this goal by being best at meeting customers' demands for efficiency and delivery. Acquisitions play an important role in our company's development and provide competence, broader product and service offers and enlarge our customer base.

Sustainability is an integrated part of Elanders' business and strategy and Elanders considers it a responsibility and a business opportunity that provides great opportunities to create value and improve profitability. Not only for Elanders or the Group's customers but society at large.

RISKS AND UNCERTAINTIES

Elanders divides risks into business risks (customer concentration, operational risk, risks in operating expenses, contracts and disputes), financial risks (currency, interest, financing/liquidity and credit risk) as well as circumstantial risks (COVID-19 pandemic, business cycle sensitivity and the war in Ukraine). These risks, together with a sensitivity analysis, are described in detail in the Annual Report 2021.

In conjunction with the war in Ukraine, the inflation has increased sharply and an energy crisis has emerged. These are also risks that may have a significant impact on the Group's operations.

In addition to what has been described above, other external circumstances that has occurred since the Annual Report was published are not believed to have caused any significant risks or influenced the way in which the Group works with these compared to the description in the Annual Report 2021.

SUSTAINABILITY

Sustainability is an integrated part of Elanders' business and strategy and Elanders considers it a responsibility and a business opportunity that provides great opportunities to create value and improve profitability. Not only for Elanders or the Group's customers but society at large. The demands regarding CSR made on major, multinational companies are just as high for their partners. Elanders' sustainability work is largely governed by the very high demands made by customers who in their own environmental and quality documentation stipulate requirements that suppliers must meet as well.

The investments Elanders is making in sustainable services, among them Renewed Tech, enables Elanders to take an active role and further contribute to a circular economy. In Renewed Tech, Elanders takes care of used IT equipment, renovating and restoring it. Then the equipment is sold to end customers that in this way reduce their environmental impact by purchasing used IT equipment. Elanders has the last few years, as part of this effort, made two acquisitions in Renewed Tech.

SEASONAL VARIATIONS

The Group's net sales, and thereby income, are affected by seasonal variations. Historically the fourth quarter has been somewhat stronger than the other quarters.

TRANSACTION WITH RELATED PARTIES

The following significant transactions with related parties have occurred during the period:

• One of the members of the Board, Erik Gabrielson, is a partner in the law firm Vinge, which provides the company with legal services.
• The Group leases properties in two subsidiaries, where the properties are wholly or partly owned by minority shareholders within the Elanders Group.

Remuneration is considered on par with the market for all of these transactions.

EVENTS AFTER THE BALANCE SHEET DATE

Besides what have been described in this report, no other major events have taken place between the balance sheet date and the date this report was signed.

FORECAST

No forecast is given for 2022.

ACCOUNTING PRINCIPLES

The quarterly report for the Group has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and for the parent company in accordance with the Annual Accounts Act. The same accounting principles and calculation methods as those in the last Annual Report have been used.

NOMINATION COMMITTEE FOR THE ANNUAL GENERAL MEETING 2023

The nomination committee for the Annual General Meeting on 21 April 2023 is as follows:

Dan Frohm, Chairman of the Board Carl Bennet, Carl Bennet AB Fredrik Carlsson, Svolder AB Jannis Kitsakis, Fourth Swedish National Pension Fund Dag Marius Nereng, Protector Forsikring ASA

Shareholders who would like to submit proposals to Elanders' 2023 Nomination Committee, can contact the Nomination Committee by e-mail at valberedning@elanders.com or by mail: Elanders AB, Att: Nomination Committee, Flöjelbergsgatan 1C, SE-431 35 Mölndal, Sweden.

ANNUAL GENERAL MEETING 2023

Elanders AB's Annual General Meeting will be held on April 21, 2023, Södra Porten Konferenscenter, Flöjelbergsgatan 1C, Mölndal, Sweden. Shareholders wishing to have a matter addressed at the Annual General Meeting can submit their proposal to Elanders' Board Chairman by e-mail: arsstamma@elanders.com, or by mail: Elanders AB, Flöjelbergsgatan 1C, SE-431 35 Mölndal, Sweden. To ensure inclusion in the notice and thus in the Annual General Meeting's agenda, proposals must be received by the company not later than February 28, 2023.

FINANCIAL CALENDAR

Fourth quarter 2022	23 January 2023
Annual Report 2022	20 March 2023
First quarter 2023	21 April 2023
Annual General Meeting 2023	21 April 2023
Second quarter 2023	12 July 2023
Third quarter 2023	17 October 2023

AUDITOR'S REPORT

Elanders AB (publ) corp. reg. no. 556008-1621

INTRODUCTION

We have reviewed the condensed interim financial information (interim report) of Elanders AB as of 30 September 2022 and the nine-months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish 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 the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do 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.

CONFERENCE CALL

In connection to the issuing of the Quarterly Report for the third quarter 2022 Elanders will hold a Press and Analysts conference call on 17 October 2022, at 15:00 CET, hosted by President and CEO Magnus Nilsson and CFO Andréas Wikner.

We invite fund managers, analysts and the media to participate in the conference call. Please see the following details to join the conference.

Please use one of the phone numbers below and dial in 5–10 minutes prior to the start time to join the conference call:

Sweden: +46 (0) 8 5051 0086 Germany: +49 (0) 211 8822 8324 UK: +44 (0) 33 0551 0211 USA: +1 646 843 4609

Participant code: 1948496#

Agenda

14:50 Conference number is opened 15:00 Presentation of quarterly results 15:20 Q&A 16:00 End of the conference

During the conference call a presentation will be held. To access the presentation, please use this link:

https://www.elanders.com/presentations

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, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Gothenburg, 17 October 2022

PricewaterhouseCoopers AB

Eric Salander Daniel Körner Rask Auditor in Charge

Authorized Public Accountant Authorized Public Accountant

CONSOLIDATED FINANCIAL STATEMENTS

INCOME STATEMENTS

		January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales	10,875	8,369	3,979	2,865	14,240	11,733
Cost of products and services sold	–9,296	–7,238	–3,417	–2,500	–12,146	–10,088
Gross profit	1,580	1,131	562	365	2,094	1,645
Sales and administrative expenses	–1,073	–788	–380	–264	–1,405	–1,119
Other operating income	146	44	36	15	184	83
Other operating expenses	–54	–16	–26	–5	–66	–28
Operating result	599	371	193	111	808	580
Net financial items	–114	–70	–42	–23	–142	–98
Result after financial items	485	301	150	88	666	482
Income tax	–138	–90	–35	–31	–199	–151
Result for the period	347	211	115	57	466	331
Result for the period attributable to:
– parent company shareholders	333	206	109	55	449	322
– non-controlling interests	14	5	6	2	17	9
Earnings per share, SEK 1) 2)	9.42	5.84	3.10	1.54	12.70	9.12
Average number of shares, in thousands	35,358	35,358	35,358	35,358	35,358	35,358
Outstanding shares at the end of the year, in thousands	35,358	35,358	35,358	35,358	35,358	35,358

1) Earnings per share before and after dilution.

2) Earnings per share calculated by dividing the result for the period attributable to parent company shareholders by the average number of outstanding shares during the period.

STATEMENTS OF COMPREHENSIVE INCOME

	January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Result for the period	347	211	115	57	466	331
Items that will not be reclassified to the income statement
Remeasurements after tax	–3	–	–1	–	3	6
Items that will be reclassified to the income statement
Translation differences after tax	477	118	200	43	537	178
Hedging of net investment abroad after tax	–97	–6	–41	–2	–99	–8
Other comprehensive income	377	112	158	41	441	177
Total comprehensive income for the period	724	323	273	98	907	508
Total comprehensive income attributable to:
– parent company shareholders	710	318	267	96	889	499
– non-controlling interests	14	5	6	2	18	9

STATEMENTS OF CASH FLOW

		January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Result after financial items	485	301	150	88	666	482
Adjustments for items not included in cash flow	759	606	287	210	1,001	848
Paid tax	–111	–91	–34	–35	–148	–128
Changes in working capital	–462	–230	–153	–22	–371	–139
Cash flow from operating activities	670	586	250	241	1,148	1,063
Net investments in intangible and tangible assets	–135	–61	–54	–23	–202	–128
Acquired and divested operations	–44	–113	–44	–67	–1,198	–1,267
Change in long-term receivables	–1	2	0	0	–3	0
Cash flow from investing activities	–180	–173	–98	–91	–1,402	–1,394
Amortization of borrowing debts	–94	–2,074	–34	–1,851	–96	–2,075
Amortization of lease liabilities	–570	–481	–196	–162	–737	–648
New loans	–	1,934	–	1,934	1,155	3,089
Other changes in long- and short-term borrowing	257	–49	232	–47	106	–200
Dividend to shareholders	–127	–110	–	–	–130	–112
Cash flow from financing activities	–535	–779	2	–125	298	54
Cash flow for the period	–45	–366	154	25	44	–277
Liquid funds at the beginning of the period	898	1,101	764	743	786	1,101
Translation difference	103	50	38	18	103	74
Liquid funds at the end of the period	956	786	956	786	956	898
Net debt at the beginning of the period	5,249	2,854	6,304	3,071	3,253	2,854
Translation difference	708	27	302	14	750	69
Acquired and divested operations	–4	114	–4	83	884	1,002
Changes with cash effect	–73	–203	–7	–110	753	624
Changes with no cash effect	1,347	461	632	195	1,586	700
Net debt at the end of the period	7,227	3,253	7,227	3,253	7,227	5,249
Operating cash flow	715	575	229	208	36	–105

STATEMENTS OF FINANCIAL POSITION

	30 Sep.
MSEK	2022	2021	31 Dec. 2021
ASSETS
Intangible assets	4,996	3,263	4,517
Tangible assets	4,694	2,406	3,372
Other fixed assets	452	290	352
Total fixed assets	10,142	5,959	8,241
Inventories	746	392	400
Accounts receivable	2,184	1,703	1,822
Other current assets	764	464	438
Cash and cash equivalents	956	786	898
Total current assets	4,649	3,344	3,559
Total assets	14,792	9,303	11,800
EQUITY AND LIABILITIES
EQUITY	3,780	3,122	3,304
LIABILITIES
Non-interest-bearing long-term liabilities	271	194	253
Interest-bearing long-term liabilities	7,238	3,417	5,326
Total long-term liabilities	7,509	3,611	5,579
Non-interest-bearing short-term liabilities	2,558	1,949	2,096
Interest-bearing short-term liabilities	945	622	821
Total short-term liabilities	3,502	2,571	2,917
Total equity and liabilities	14,792	9,303	11,800

STATEMENTS OF CHANGES IN EQUITY

	January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Opening balance	3,304	2,908	3,522	3,024	3,122	2,908
Dividend to parent company shareholders	–127	–110	–	–	–127	–110
Dividend to non-controlling interests	–	–	–	–	–3	–3
Change in fair value of put and call option to acquire non-controlling interest	–120	–	–15	–	–120	–
Total comprehensive income for the period	724	323	273	98	907	508
Closing balance	3,780	3,122	3,780	3,122	3,780	3,304
Equity attributable to
– parent company shareholders	3,738	3,096	3,738	3,096	3,738	3,276
– non-controlling interests	42	26	42	26	42	27

SEGMENT REPORTING

The two business areas are reported as operating segments, since this is how the Group is governed and the President has been identified as the highest executive decision-maker. The operations within each operating segment have similar

economic characteristics and resemble each other regarding the nature of their products and services, production processes and customer types. Sales between segments are made on market terms.

NET SALES PER SEGMENT

	January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Supply Chain Solutions	9,008	6,520	3,325	2,292	11,692	9,204
Print & Packaging Solutions	1,965	1,908	686	592	2,663	2,606
Group functions	34	29	11	10	44	39
Eliminations	–131	–88	–43	–29	–159	–116
Group net sales	10,875	8,369	3,979	2,865	14,240	11,733

OPERATING RESULT PER SEGMENT

	January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Supply Chain Solutions	568	313	179	99	714	459
Print & Packaging Solutions	66	85	26	21	143	162
Group functions	–35	–27	–12	–10	–50	–41
Group operating result	599	371	193	111	808	580

DISAGGREGATION OF REVENUE

Revenue has been divided into geographic markets, main revenue streams and customer segments since these are the categories the Group uses to present and analyze revenue in other contexts. Revenue for each category is presented per reportable segment. The Group's customer contracts are easy to identify and products and services in a contract are largely connected and dependent on each other, and therefore part of an integrated offer.

Main revenue streams are presented based on the internal names used in the Group. Sourcing & Procurement services refer to the purchase and procurement of products for customers as

well as handling the flows connected to these products. Freight and transportation services refer to revenue from freight and transportation with our own trucks as well as pure freight forwarding. Other supply chain services such as fulfilment, kitting, warehousing, assembly and after sales services are presented under Other contract logistics services. Other work/services refer to pure print services and other services that do not fit into any of the first three categories.

Intra-group invoicing regarding group functions is reported net in net sales to group companies.

JANUARY – SEPTEMBER

	Supply Chain Solutions		Print & Packaging Solutions		Total
MSEK	2022	2021	2022	2021	2022	2021
Total net sales	9,008	6,520	1,965	1,908	10,973	8,428
Less: net sales to group companies	–56	–18	–41	–41	–97	–59
Net sales	8,951	6,502	1,924	1,867	10,875	8,369

	Supply Chain Solutions			Print & Packaging Solutions		Total
MSEK	2022	2021	2022	2021	2022	2021
Customer segments
Automotive	1,716	1,426	314	224	2,030	1,651
Electronics	2,910	2,382	64	73	2,974	2,455
Fashion & Lifestyle	2,613	1,207	419	720	3,032	1,926
Health Care & Life Science	393	317	66	49	460	366
Industrial	951	776	392	352	1,343	1,128
Other	367	394	669	449	1,036	843
Net sales	8,951	6,502	1,924	1,867	10,875	8,369
Main revenue streams
Sourcing and procurement services	1,842	1,559	–	–	1,842	1,559
Freight and transportation services	3,014	2,064	166	496	3,181	2,560
Other contract logistics services	3,758	2,542	312	292	4,070	2,834
Other work/services	337	337	1,445	1,079	1,782	1,416
Net sales	8,951	6,502	1,924	1,867	10,875	8,369
Geographic markets
Europe	5,066	4,187	1,355	1,023	6,421	5,211
Asia	2,089	1,730	30	25	2,119	1,756
North and South America	1,782	578	534	815	2,317	1,393
Other	14	7	4	3	18	10
Net sales	8,951	6,502	1,924	1,867	10,875	8,369

DISAGGREGATION OF REVENUE (CONT.)

THIRD QUARTER

MSEK	Supply Chain Solutions		Print & Packaging Solutions		Total
	2022	2021	2022	2021	2022	2021
Total net sales	3,325	2,292	686	592	4,010	2,884
Less: net sales to group companies	–17	–5	–15	–14	–32	–19
Net sales	3,308	2,287	671	578	3,979	2,865

	Supply Chain Solutions		Print & Packaging Solutions		Total
MSEK	2022	2021	2022	2021	2022	2021
Customer segments
Automotive	555	450	102	57	657	507
Electronics	1,224	894	22	22	1,246	917
Fashion & Lifestyle	919	443	139	186	1,058	629
Health Care & Life Science	133	108	24	19	157	127
Industrial	334	261	127	118	461	379
Other	142	130	257	176	399	306
Net sales	3,308	2,287	671	578	3,979	2,865
Main revenue streams
Sourcing and procurement services	840	597	–	–	840	597
Freight and transportation services	1,080	720	52	104	1,133	824
Other contract logistics services	1,285	797	86	110	1,371	907
Other work/services	102	173	533	365	635	537
Net sales	3,308	2,287	671	578	3,979	2,865
Geographic markets
Europe	1,726	1,407	484	352	2,210	1,759
Asia	910	665	11	9	921	674
North and South America	665	213	174	216	839	429
Other	7	3	2	1	8	4
Net sales	3,308	2,287	671	578	3,979	2,865

DISAGGREGATION OF REVENUE (CONT.)

LAST 12 MONTHS AND FULL YEAR 2021

MSEK	Supply Chain Solutions		Print & Packaging Solutions		Total
	Last 12 months	Full year 2021	Last 12 months	Full year 2021	Last 12 months	Full year 2021
Total net sales	11,692	9,204	2,663	2,606	14,355	11,810
Less: net sales to group companies	–66	–27	–50	–50	–115	–77
Net sales	11,626	9,177	2,613	2,556	14,240	11,733

	Supply Chain Solutions		Print & Packaging Solutions		Total
MSEK	Last 12 months	Full year 2021	Last 12 months	Full year 2021	Last 12 months	Full year 2021
Customer segments
Automotive	2,217	1,927	383	293	2,600	2,220
Electronics	3,827	3,300	90	98	3,917	3,398
Fashion & Lifestyle	3,374	1,968	574	875	3,949	2,843
Health Care & Life Science	505	429	91	73	596	502
Industrial	1,224	1,050	521	480	1,745	1,530
Other	478	504	955	736	1,434	1,240
Net sales	11,626	9,177	2,613	2,556	14,240	11,733
Main revenue streams
Sourcing and procurement services	2,422	2,139	–	–	2,422	2,139
Freight and transportation services	3,891	2,941	233	562	4,124	3,504
Other contract logistics services	4,837	3,621	416	395	5,253	4,016
Other work/services	476	476	1,965	1,598	2,441	2,075
Net sales	11,626	9,177	2,613	2,556	14,240	11,733
Geographic markets
Europe	6,675	5,797	1,840	1,508	8,515	7,305
Asia	2,744	2,385	38	34	2,782	2,419
North and South America	2,190	986	730	1,010	2,920	1,996
Other	17	9	5	5	22	14
Net sales	11,626	9,177	2,613	2,556	14,240	11,733

NET SALES PER QUARTER

	2022			2021
MSEK	Third quarter	Second quarter	First quarter	Fourth quarter	Third quarter	Second quarter
Customer segments
Automotive	657	696	677	570	507	559
Electronics	1,246	893	835	943	917	809
Fashion & Lifestyle	1,058	1,010	964	916	629	624
Health Care & Life Science	157	153	149	136	127	138
Industrial	461	453	429	402	379	367
Other	399	320	317	397	306	273
Net sales	3,979	3,525	3,371	3,364	2,865	2,769

FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE

The financial instruments recognized at fair value in the Group's report on financial position consist primarily of derivatives, conditional put and call options regarding non-controlling interests and contingent considerations related to acquisitions.

The derivatives consist of forward contracts and are used for hedging purposes. Valuation at fair value of forward contracts is based on published forward rates on an active market. Derivatives for hedging purposes are recognized at fair value and are presented under other current assets and non-interest-bearing current liabilities. These records are included in level two of the fair value hierarchy. These items are gross less than SEK 1 million both as of September 30, 2022, and the comparison periods.

Other liabilities measured at fair value, included in level three of the fair value hierarchy, consist of liabilities attributable to put and call options relating to acquisitions of non-controlling interests and contingent considerations related to acquisitions.

Put and call options are initially recognized as financial liabilities at the present value of the redemption price which applies at the time when the option can first be exercised. Changes in these liabilities are recognized over equity. Contingent considerations are initially recognized as financial liabilities at the present value of the estimated consideration. Changes in these liabilities are recognized in the income statement. As of September 30, 2022, the fair value of these financial liabilities amounts to SEK 570 million compared to SEK 362 million at the beginning of the year. The increase is due to revaluations of contingent considerations as a result of the acquired companies' positive developments as well as exchange rate fluctuations. No new put and call options were added during the year.

The fair value of other financial assets and liabilities valued at their amortized purchase price is estimated to be equivalent to their book value.

ACQUISITIONS AND DIVESTMENTS OF OPERATIONS

Schätzl Druck & Medien GmbH & Co. KG

In July 2021 Elanders acquired all the shares in the German digital print company Schätzl Druck & Medien GmbH & Co. KG ("Schätzl").

In the last twelve-month period Schätzl had net sales of around MEUR 20 with good profitability. The purchase price for the shares was MEUR 8 on a debt-free basis. The seller may also receive an additional consideration which will be paid in 2024 if the company continues to develop positively.

The purchase price allocation is now final and no changes have been made.

Bergen Shippers Corp.

In November 2021 Elanders acquired 80 percent of the shares in the American supply chain management company Bergen Shippers Corp. The company operates under the name Bergen Logistics and is specialized in contract logistics services for the customer segment Fashion & Lifestyle. This acquisition makes this customer segment the largest in the Group. The company's net sales in 2020 were MUSD 82 and over MUSD 100 in 2021. The company was valued at MUSD 155 on a debt free basis and Elanders initially acquired 80 percent of the shares for MUSD 124. The initial purchase price charged cash flow in the fourth quarter 2021. Elanders also has a mandatory option to purchase the remaining shares during 2024 for a purchase price based on the company's result development in 2023. Bergen Logistics is part of business area Supply Chain Solutions and was consolidated into the Group as of November 2021.

One-off costs in connection with the acquisition were around MSEK 15 and consisted primarily of consultancy fees. The acquisition was financed with an acquisition loan via the Group's three principle banks.

The purchase price allocation is preliminary.

Eijgenhuijsen Exploitatie BV

At the end of November 2021 Elanders acquired all the shares in Eijgenhuijsen Exploitatie BV and its subsidiary Eijgenhuijsen Precisievervoer BV (together Eijgenhuijsen). Through this acquisition Elanders will be able to offer special transportation, installation and retrieving of advanced technical equipment. Eijgenhuijsen is a leading actor in the Netherlands in this field. The acquisition is part of the strategy to increase the share of value-added services, for example to customers within Electronics and Healthcare & Life Science. Eijgenhuijsen is privately owned and had net sales of MEUR 10 in 2020 with good profitability.

Eijgenhuijsen is part of business area Supply Chain Solutions and was consolidated into the Group as of December 2021.

The purchase price was around MEUR 10 on a debt-free basis, excluding IFRS 16 effects. The acquisition was financed within Elanders' existing credit framework and acquisition costs were around MSEK 2.

The purchase price allocation is preliminary.

Bonds Worldwide Holdings Ltd

In July 2022 Elanders signed acquired all the shares in the British Bonds Worldwide Holdings Limited with subsidiary Bonds Worldwide Express Limited and Bonds Technical Couriers Limited (together "Bonds"). Bonds is a leading actor in Great Britain in special transportation and installation of advanced technical equipment. The company is privately owned and had net sales of around MGBP 5 in 2021 with good profitability.

The acquisition allows Elanders to offer unique solutions for special transportation as well as installation and returns of advanced technical equipment. The acquisition is also a step in increasing the portion of added-value services, particularly to customers in Electronics and Healthcare. Bonds is part of the business area Supply Chain Solutions and is a subsidiary of Elanders' sub-group LGI.

The purchase price amounted to about MGBP 5 on a debt-free basis, excluding IFRS 16 effects from net debt. The acquisition has been financed through the existing credit framework and acquisition costs were less than MSEK 2.

The purchase price allocation is preliminary.

ACQUISITIONS AND DIVESTMENTS OF OPERATIONS (CONT.)

PRELIMINARY PURCHASE PRICE ALLOCATION (PPA) BERGEN LOGISTICS

MSEK	Recorded values in acquired operations	Adjustments to fair value	Recorded value in the Group
Intangible assets	0	534	534
Other assets 1)	771	68	839
Current assets excluding cash and cash equivalents	143	0	143
Cash and cash equivalents	46	0	46
Other non-interest bearing liabilites	–87	–64	–151
Interest bearing liabilities 2)	–687	0	–687
Identifiable net assets	185	538	723
Goodwill			682
Total	185	538	1,405
Less:
Unpaid purchase price			–278
Cash and cash equivalents in acquisitions			–46
Negative effect on cash and cash equivalents for the Group			1,081

1) Whereof right-of-use assets MSEK 664.

2) Whereof lease liabilities MSEK 664.

PRELIMINARY PURCHASE PRICE ALLOCATION (PPA) EIJGENHUIJSEN AND BONDS

MSEK	Recorded values in acquired operations	Adjustments to fair value	Recorded value in the Group
Intangible assets	2	12	14
Other assets 1)	70	0	70
Current assets excluding cash and cash equivalents	29	0	29
Cash and cash equivalents	49	0	49
Other non-interest bearing liabilites	–32	–5	–36
Interest bearing liabilities 2)	–39	0	–39
Identifiable net assets	79	7	87
Goodwill			66
Total	79	7	153
Less:
Unpaid purchase price			–7
Amortization of external loans in connection with acquisition			21
Cash and cash equivalents in acquisitions			–49
Negative effect on cash and cash equivalents for the Group			118

1) Whereof right-of-use assets MSEK 1.

2) Whereof lease liabilities MSEK 1.

QUARTERLY DATA

QUARTERLY DATA

	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3
Net sales, MSEK	3,979	3,525	3,371	3,364	2,865	2,769	2,734	2,886	2,778
EBITDA, MSEK	466	507	430	456	328	343	341	466	390
EBITDA excl. IFRS 16, MSEK	246	295	220	266	156	176	173	295	222
EBITA, MSEK	216	264	187	228	126	145	142	256	190
EBITA adjusted, MSEK	224	224	187	244	127	145	142	256	190
EBITA-margin, %	5.4	7.5	5.5	6.8	4.4	5.2	5.2	8.9	6.8
EBITA-margin adjusted, %	5.6	6.3	5.5	7.3	4.4	5.2	5.2	8.9	6.8
Operating result, MSEK	193	241	165	209	111	132	129	243	177
Operating margin, %	4.8	6.8	4.9	6.2	3.9	4.8	4.7	8.4	6.4
Result after financial items, MSEK	150	206	129	181	88	110	104	211	147
Result after tax, MSEK	115	143	88	120	57	86	69	156	101
Earnings per share, SEK 1)	3.10	3.91	2.42	3.28	1.54	2.38	1.91	4.33	2.83
Operating cash flow, MSEK	229	187	300	–680	208	260	107	693	455
Cash flow per share, SEK 2)	7.08	4.42	7.47	13.50	6.81	6.40	3.36	20.04	11.07
Depreciation and write-downs, MSEK	273	266	265	247	218	211	212	223	213
Net investments, MSEK	98	43	39	1,222	91	20	62	65	23
Goodwill, MSEK	3,685	3,505	3,347	3,305	2,584	2,500	2,523	2,413	2,479
Total assets, MSEK	14,792	13,148	12,131	11,800	9,303	8,810	9,052	8,639	9,283
Equity, MSEK	3,780	3,522	3,440	3,304	3,122	3,024	3,075	2,908	2,903
Equity per share, SEK	105.72	98.60	96.44	92.67	87.55	84.85	86.33	81.65	81.56
Net debt, MSEK	7,227	6,304	5,377	5,249	3,253	3,071	3,099	2,854	3,567
Net debt excl. IFRS 16, MSEK	3,231	3,005	2,532	2,539	1,336	1,298	1,261	1,123	1,630
Capital employed, MSEK	11,007	9,826	8,817	8,553	6,375	6,095	6,174	5,762	6,470
Return on total assets, % 3)	6.6	8.7	5.8	8.4	5.1	6.0	6.3	12.2	7.6
Return on equity, % 3)	12.1	16.0	10.2	14.6	7.2	11.1	9.1	21.2	14.0
Return on capital employed, % 3)	7.4	10.4	7.6	11.2	7.1	8.6	8.6	15.9	11.1
Debt/equity ratio	1.9	1.8	1.6	1.6	1.0	1.0	1.0	1.0	1.2
Equity ratio, %	25.6	26.8	28.4	28.0	33.6	34.3	34.0	33.6	31.3
Interest coverage ratio 4)	5.5	6.0	6.0	6.3	6.8	7.1	6.0	5.0	2.4
Number of employees at the end of the period	7,337	7,273	7,182	7,019	6,234	6,107	6,072	6,058	6,084

1) There is no dilution.

2) Cash flow per share refers to cash flow from operating activities.

3) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12 month period).

4) Interest coverage ratio calculation is based on a moving 12 month period.

FIVE YEAR OVERVIEW

FIVE YEAR OVERVIEW – JANUARY – SEPTEMBER

	2022	2021	2020	2019	2018
Net sales, MSEK	10,875	8,369	8,164	8,350	7,852
EBITDA, MSEK	1,403	1,012	965	1,070	508
EBITA, MSEK	666	413	342	424	353
EBITA adjusted, MSEK	635	413	342	394	353
Result after tax, MSEK	347	211	136	197	150
Earnings per share, SEK 1)	9.42	5.84	3.78	5.45	4.17
Cash flow from operating activities per share, SEK	18.96	16.57	28.75	28.29	2.59
Equity per share, SEK	105.72	87.55	81.56	82.52	73.16
Return on equity, % 2)	12.5	9.1	6.2	9.2	11.6
Return on capital employed, % 2)	8.1	8.1	6.2	7.1	7.6
EBITA-margin, %	6.1	4.9	4.2	5.1	4.5
EBITA-margin adjusted, %	5.8	4.9	4.2	4.7	4.5
Operating margin, %	5.5	4.4	3.7	4.6	3.9
Average number of shares, in thousands	35,358	35,358	35,358	35,358	35,358

1) There is no dilution.

2) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12 month period).

FIVE YEAR OVERVIEW – THIRD QUARTER

	2022	2021	2020	2019	2018
Net sales, MSEK	3,979	2,865	2,778	2,825	2,817
EBITDA, MSEK	466	328	390	387	206
EBITA, MSEK	216	126	190	169	154
EBITA adjusted, MSEK	224	126	190	159	154
Result after tax, MSEK	115	57	101	88	75
Earnings per share, SEK 1)	3.10	1.54	2.83	2.43	2.07
Cash flow from operating activities per share, SEK	7.08	6.81	11.07	11.70	0.94
Equity per share, SEK	105.72	87.55	81.56	82.52	73.16
Return on equity, % 2)	12.1	7.2	14.0	12.1	11.4
Return on capital employed, % 2)	7.4	7.1	11.1	8.5	10.1
EBITA-margin, %	5.4	4.4	6.8	6.0	5.5
EBITA-margin adjusted, %	5.6	4.4	6.8	5.6	5.5
Operating margin, %	4.8	3.9	6.4	5.5	4.9
Average number of shares, in thousands	35,358	35,358	35,358	35,358	35,358

1) There is no dilution.

2) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12 month period).

FIVE YEAR OVERVIEW – FULL YEAR

	2021	2020	2019	2018	2017
Net sales, MSEK	11,733	11,050	11,254	10,742	9,342
EBITDA, MSEK	1,468	1,431	1,285	725	563
EBITA, MSEK	641	598	413	523	371
EBITA adjusted, MSEK	658	598	563	523	371
Result after financial items, MSEK	482	414	216	366	230
Result after tax, MSEK	331	292	153	259	165
Earnings per share, SEK 1)	9.12	8.12	4.19	7.18	4.65
Cash flow from operating activities per share, SEK	30.07	48.80	37.81	12.88	–1.81
Equity per share, SEK	92.67	81.65	78.54	76.28	69.21
Dividends per share, SEK 2)	3.60	3.10	–	2.90	2.60
EBITA-margin, %	5.5	5.4	3.7	4.9	4.0
EBITA-margin adjusted, %	5.6	5.4	5.0	4.9	4.0
Return on total assets, %	6.3	6.4	4.2	6.6	4.3
Return on equity, %	10.4	9.9	5.3	9.8	6.8
Return on capital employed, %	8.5	8.6	5.0	8.5	6.2
Net debt/EBITDA ratio, times	3.6	2.0	3.1	3.5	4.7
Net debt/EBITDA excl. IFRS 16 ratio. times	3.3	1.5	3.7	3.5	4.7
Debt/equity ratio, times	1.6	1.0	1.4	0.9	1.1
Equity ratio, %	28.0	33.6	30.2	35.0	33.1
Average number of shares, in thousands	35,358	35,358	35,358	35,358	35,358

1) There is no dilution.

2) Dividend proposed by the board for the year 2021.

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FINANCIAL OVERVIEW

	January – September		Third quarter
MSEK		2021	2022	2021	Last 12 months	Full year 2021
Operating result	599	371	193	111	808	580
Depreciation, amortization and write-downs	804	641	273	218	1,051	888
EBITDA	1,403	1,012	466	328	1,859	1,468
Operating result	599	371	193	111	808	580
Amortization of assets identified in conjunction with acquisitions	68	42	23	15	87	61
EBITA	666	413	216	126	894	641
Adjustments for one-off items	–32	1	8	1	–16	17
EBITA adjusted	635	414	224	127	879	658
EBITA-margin, %	6.1	4.9	5.4	4.4	6.3	5.5
EBITA-margin adjusted, %	5.8	4.9	5.6	4.4	6.2	5.6
Cash flow from operating activities	670	586	250	241	1,148	1,063
Net financial items	114	70	42	23	142	98
Paid tax	111	91	34	35	148	128
Net investments	–180	–173	–98	–91	–1,402	–1,394
Operating cash flow	715	575	229	208	36	–105
Interest-bearing long-term liabilities	7,238	3,417	7,238	3,417	7,238	5,326
Interest-bearing short-term liabilities	945	622	945	622	945	821
Cash and cash equivalents	–956	–786	–956	–786	–956	–898
Net debt	7,227	3,253	7,227	3,253	7,227	5,249
Net debt/EBITDA ratio, times	3.9	2.4	3.9	2.5	3.9	3.6
Operating result excl. IFRS 16	545	340	173	99	740	536
Depreciation, amortization and write-downs excl. IFRS 16	217	164	73	57	287	234
EBITDA excl. IFRS 16	762	504	246	156	1,028	770
Interest-bearing long-term liabilities excl. IFRS 16	3,991	2,103	3,991	2,103	3,991	3,279
Interest-bearing short-term liabilities excl. IFRS 16	196	19	196	19	196	158
Cash and cash equivalents	–956	–786	–956	–786	–956	–898
Net debt excl. IFRS 16	3,231	1,336	3,231	1,336	3,231	2,539
Net debt/EBITDA ratio excl. IFRS 16, times	3.2	2.0	3.3	2.1	3.1	3.3

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – QUARTERLY DATA

MSEK	2022 Q3	2022 Q2	2022 Q1	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3
Operating result	193	241	165	209	111	132	129	243	177
Depreciation, amortization and write-downs	273	266	265	247	218	211	212	223	213
EBITDA	466	507	430	456	328	343	341	466	390
Operating result excl. IFRS 16	173	224	148	196	99	121	120	232	167
Depreciation, amortization and write-downs excl. IFRS 16	73	71	72	70	57	55	53	63	54
EBITDA excl. IFRS 16	246	295	220	266	156	176	173	295	222
Operating result	193	241	165	209	111	132	129	243	177
Amortization of assets identified in conjunction with acquisitions	23	22	22	19	15	14	13	13	13
EBITA	216	264	187	228	126	145	142	256	190
Cash flow from operating activities	250	156	264	477	241	226	119	709	391
Net financial items	42	36	36	28	23	22	25	32	30
Paid tax	34	38	39	37	35	31	25	17	56
Net investments	-98	–43	–39	–1,222	–91	–20	–62	–65	–23
Operating cash flow	229	187	300	–680	208	260	107	693	455
Average total assets	13,970	12,640	11,965	10,551	9,057	8,931	8,846	8,961	9,211
Average cash and cash equivalents	–860	–796	–863	–842	–764	–789	–968	–997	–901
Average non-interest-bearing liabilities	–2,694	–2,522	–2,417	–2,246	–2,058	–2,008	–1,910	–1,848	–1,948
Average capital employed	10,417	9,321	8,685	7,464	6,235	6,134	5,968	6,116	6,362
Annualized operating result	770	965	659	837	443	526	515	971	708
Return on capital employed, %	7.4	10.4	7,6	11.2	7.1	8.6	8,6	15.9	11.1
Interest-bearing long-term liabilities	7,238	6,191	5,371	5,326	3,417	3,225	1,437	3,268	3,629
Interest-bearing short-term liabilities	945	877	835	821	622	588	2,497	687	831
Cash and cash equivalents	–956	–764	–828	–898	–786	–743	–834	–1,101	–893
Net debt	7,227	6,304	5,377	5,249	3,253	3,071	3,099	2,854	3,567

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – JANUARY – SEPTEMBER

MSEK	2022	2021	2020	2019	2018
Operating result	599	371	303	383	305
Amortization of assets identified in conjunction with acquisitions	68	42	39	41	48
EBITA	666	413	342	424	353
Average total assets	13,357	8,951	9,385	9,834	7,710
Average cash and cash equivalents	–849	–866	–891	–780	–584
Average non-interest-bearing liabilities	–2,624	–1,984	–1,958	–1,807	–1,760
Average capital employed	9,883	6,101	6,536	7,248	5,366
Annualized operating result	798	495	404	511	407
Return on capital employed, %	8.1	8.1	6.2	7.1	7.6

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – THIRD QUARTER

MSEK	2022	2021	2020	2019	2018
Operating result	193	111	177	156	138
Amortization of assets identified in conjunction with acquisitions	23	15	13	14	16
EBITA	216	126	190	169	154
Average total assets	13,970	9,057	9,211	9,877	7,873
Average cash and cash equivalents	–860	–764	–901	–805	–552
Average non-interest-bearing liabilities	–2,694	–2,058	–1,948	–1,789	–1,844
Average capital employed	10,417	6,235	6,362	7,283	5,477
Annualized operating result	770	443	708	623	552
Return on capital employed, %	7.4	7.1	11.1	8.5	10.1

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FULL YEAR

MSEK	2021	2020	2019	2018	2017
Operating result	580	546	359	459	308
Depreciation, amortization and write-downs	888	885	927	266	255
EBITDA	1,468	1,431	1,285	725	563
Operating result	580	546	359	459	308
Amortization of assets identified in conjunction with acquisitions	61	52	54	64	63
EBITA	641	598	413	523	371
Average total assets	9,741	9,198	9,677	7,792	7,154
Average cash and cash equivalents	–815	–944	–749	–595	–639
Average non-interest-bearing liabilities	–2,127	–1,912	–1,808	–1,799	–1,532
Average capital employed	6,799	6,342	7,120	5,398	4,983
Operating result	580	546	359	459	308
Return on capital employed, %	8.5	8.6	5.0	8.5	6.2

PARENT COMPANY'S FINANCIAL STATEMENTS

INCOME STATEMENTS

	January – September		Third quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales	34	29	11	10	44	39
Operating expenses	–72	–57	–24	–19	–99	–83
Operating result	–38	–27	–13	–10	–55	–44
Net financial items	–56	147	–35	18	111	314
Result after financial items	–94	120	–47	9	56	270
Income tax	21	–7	10	–2	22	–6
Result for the period	–73	113	–38	6	79	264

STATEMENTS OF COMPREHENSIVE INCOME

MSEK	January – September		Third quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Result for the period	–73	113	–38	6	79	264
Other comprehensive income	–	–	–	–	–	–
Total comprehensive income for the period	–73	113	–38	6	79	264

BALANCE SHEETS

	30 Sep.
MSEK	2022	2021	31 Dec. 2021
ASSETS
Fixed assets	5,469	4,044	5,278
Current assets	1,027	232	439
Total assets	6,496	4,276	5,717
EQUITY, PROVISIONS AND LIABILITIES
Equity	1,816	1,865	2,017
Provisions	2	5	5
Long-term liabilities	3,360	1,944	2,854
Short-term liabilities	1,319	462	842
Total equity, provisions and liabilities	6,496	4,276	5,717

STATEMENTS OF CHANGES IN EQUITY

MSEK	January – September		Third quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Opening balance	2,017	1,862	1,854	1,859	1,865	1,862
Dividend	–127	–110	–	–	–127	–110
Total comprehensive income for the period	–73	113	–38	6	79	264
Closing balance	1,816	1,865	1,816	1,865	1,816	2,017

FINANCIAL DEFINITIONS

Average number of employees The number of employees at the end of each month divided number of months.

Average number of shares

Weighted average number of shares outstanding during the period.

Capital employed

Total assets less liquid funds and non-interest bearing liabilities.

Debt/equity ratio

Net debt in relation to reported equity, including non-controlling interests.

Earnings per share

Result for the period attributable to parent company shareholders divided by the average number of shares.

EBIT

Earnings before interest and taxes; operating result.

EBITA

Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.

EBITA adjusted

Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions adjusted for one-off items.

EBITDA

Earnings before interest, taxes, depreciation and amortization; operating result plus depreciation, amortization and writedowns of intangible assets and tangible fixed assets.

Equity ratio

Equity, including non-controlling interests, in relation to total assets.

Interest coverage ratio

Operating result plus interest income divided by interest costs.

Net debt

Interest bearing liabilities less liquid funds.

Operating cash flow

Cash flow from operating activities and investing activities, adjusted for paid taxes and financial items.

Operating margin

Operating result in relation to net sales.

Return on capital employed (ROCE)

Operating result in relation to average capital employed.

Return on equity

Result for the year in relation to average equity.

Return on total assets

Operating result plus financial income in relation to average total assets.

For this Quarterly Report, we have used the 100 percent recycled paper Nautilus Classic, which is an uncoated paper quality with an off-white surface. The quality is made from 100 percent recycled fiber raw material.

ELANDERS | QUARTERLY REPORT JANUARY – SEPTEMBER 2022