Latour

Interim / Quarterly Report • Aug 23, 2022

Interim report January – June 2022

NET ASSET VALUE AND THE LATOUR SHARE

• The net asset value fell to SEK 158 per share, compared with SEK 216 per share at the start of the year. This is a decrease of 25.5 per cent, adjusted for dividends. By comparison, the Stockholm Stock Exchange's Total Return Index (SIXRX) decreased by 27.9 per cent. The net asset value was SEK 169 per share at 22 August.1
• The total return on the Latour share was -44.3 per cent during the period measured against the SIXRX, which fell 27.9 per cent.

INDUSTRIAL OPERATIONS

The second quarter

• The industrial operations' order intake rose 11 per cent to SEK 6,297 m (5,678 m), a 1 per cent increase for comparable entities adjusted for foreign exchange effects.
• The industrial operations' net sales rose 17 per cent to SEK 5,561 m (4,748 m), which represents a 6 per cent increase for comparable entities adjusted for foreign exchange effects.
• The industrial operations' operating profit increased by 8 per cent to SEK 812 m (753 m), which equates to an operating margin of 14.6 (15.9) per cent.
• Swegon acquired the Swiss company Barcol-Air on 3 June.

January – June

• In the first quarter, Latour Industries acquired the Italian company Essi-Ti S.R.L, Bemsiq acquired the German company Consens GmbH, Hultafors acquired the Swedish company Telesteps and Caljan acquired the Austrian company PHS Logistiktechnik. The divestment of Neuffer Fenster + Türen GmbH was finalized in January.
• The industrial operations' order intake rose 19 per cent to SEK 12,137 m (10,178 m), which represents a 6 per cent increase for comparable entities adjusted for foreign exchange effects.
• The industrial operations' net sales rose 22 per cent to SEK 10,580 m (8,672 m), which represents an 8 per cent increase for comparable entities adjusted for foreign exchange effects.
• Operating profit increased by 12 per cent to SEK 1,481 m (1,322 m), which equates to an operating margin of 14.0 (15.2) per cent.

THE GROUP

• Consolidated net sales totalled SEK 10,580 m (8,810 m), and profit after financial items was SEK 2,406 m (2,659 m). A SEK -613 m (+198 m) impairment charge related to Alimak was recognised in the income statement for the period.
• Consolidated profit after tax was SEK 2,071 m (2,390 m), which is equivalent to SEK 3.23 (3.74) per share.
• The Group reported net debt of SEK 11,042 m (7,532 m). Net debt, excluding lease liabilities recognised under IFRS 16, was SEK 9,814 m (6,748 m) and is equivalent to 9 (5) per cent of the market value of total assets.

INVESTMENT PORTFOLIO

• During the first six months, the value of the investment portfolio fell by 33.3 per cent adjusted for dividends. The benchmark index (SIXRX) decreased by 27.9 per cent.

EVENTS AFTER THE REPORTING PERIOD

• On August 2, the listed company Alimak Group announced that they had entered into an agreement to acquire Tractel. Latour supports the acquisition and, as the principal owner, has undertaken to participate with its pro rata share in the new issue which is part of Alimak's financing of the acquisition.
• On August 22, Swegon signed an agreement to acquire ABC Ventilationsprodukter.

¹ The calculation of the net asset value on 22 August was based on the value of the investment portfolio at 1.00 p.m. on 22 August, and the same values as at 30 June were used for the unlisted portfolio.

LATOUR AT A GLANCE

Investment AB Latour is a mixed investment company consisting primarily of wholly-owned industrial operations and an investment portfolio of listed holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of ten substantial holdings that had a market value of SEK 65 billion as at 30 June 2022. The wholly-owned industrial operations are grouped into six business areas: Bemsiq, Caljan, Hultafors Group, Latour Industries, Nord-Lock Group and Swegon. They generate annual sales amounting to approximately SEK 20 billion.

Chief Executive's statement

"The industrial operations are maintaining a positive trajectory and we are seeing good underlying demand across our markets. Order intake and invoiced sales are both growing organically. Despite major challenges with component shortages and benchmarking our performance against increasingly tough comparative figures, we are once again posting a record set of results in absolute terms. The rate of order intake growth decelerated somewhat during the quarter and invoiced sales remained at a good level. Overall, the growth in the order book continued which bodes well for a strong increase in invoiced sales in the coming quarter.

The quarter was marked by the ongoing shortage of components and general price inflation, which place high demands on our organisations. Price increases have been implemented to compensate for the higher costs. For some entities, however, the effect has not yet been fully felt. As before, our priority is to maintain a high level of service to our customers, which we are successfully managing to do, albeit at a higher cost than normal. These factors are having a short-term adverse impact on profitability, which is reflected in a somewhat lower yet still good operating margin. We are confident that we will maintain our competitive edge over the long term and gain market share by making our customers our priority.

In total, the order intake increased 11 per cent and net sales were up by 17 per cent. Adjusted for acquisitions and foreign exchange effects, order intake grew by 1 per cent and invoiced sales by 6 per cent during the quarter. Profit increased to SEK 812 m (753 m) with an operating margin of 14.6 (15.9) per cent.

Latour has a strong financial position and we are continuing to make forward-looking investments in our companies. Sustainability is as relevant as ever and has the same priority as in the past. During the quarter, we took the next step and integrated sustainability into our financing operations. We published our first green framework in May, and this was followed in June by a successful issue of two green bonds. Enabling green financing is a natural next step for us and strengthens Latour's overall sustainability commitments.

The level of acquisition activity is high and, as in the past, we are engaged in numerous discussions. It is currently a challenging time to be acquiring companies as it is difficult to strike a balance between the price expected by the seller and what the buyer is willing to pay. During the quarter, we concluded an acquisition through Swegon which acquired Barcol-Air. Read more about our acquisitions on page 4.

Global events are continuing to have a negative impact on the stock market which has generally continued on a downward trajectory. This has also had an impact on our holdings. In the first six months, Latour's net asset value fell 25.5 per cent to SEK 158 per share, and Latour's investment portfolio diminished by 33.3 per cent. By comparison, the benchmark index SIXRX fell 27.9 per cent. With little exception, our listed companies reported continued positive growth during the quarter. Supply chain issues and price inflation are having a short-term impact on the companies' gross margins to varying degrees. On the whole, however, demand remains high. Our listed companies are continuing their acquisition activities at a good pace. Recent activities include the acquisition by Alimak of the French company Tractel. This is a major acquisition that will significantly enhance Alimak's global position. Latour is supporting the deal and we have committed to participate in the new share issue with our pro rata portion."

Johan Hjertonsson President and Chief Executive Officer

Industrial operations

Order intake, invoiced sales and earnings

The second quarter order intake was up 11 per cent to SEK 6,297 m (5,678 m), with organic growth accounting for 1 per cent of this. Invoiced sales rose 17 per cent to SEK 5,561 m (4,748 m), which represents a 6 per cent increase for comparable entities and when adjusted for foreign exchange effects. Operating profit in the wholly-owned industrial operations increased by 8 per cent during the quarter to SEK 812 m (753 m). The operating margin was 14.6 (15.9) per cent.

The above figures only include subsidiaries of the whollyowned business areas. See the separate report on page 5.

Acquisitions/disposals

On 3 June, Swegon acquired the entire shareholding of Barcol-Air, a leading supplier of radiant ceiling systems. The company was founded in 1979. Today it has 90 employees and its head office is in Schwerzenbach, Switzerland, and its production facilities are in St. Leon-Rot, Germany. In 2021, it reported net sales of EUR 37.2 m.

Earlier in the year, five transactions took place within the scope of our wholly-owned industrial operations. In January 2022, Latour-Gruppen AB sold its shares in Neuffer Fenster + Türen GmbH. Latour acquired 66 per cent of the shares in Neuffer in 2015 in order to expand its expertise and knowledge in the area of e-commerce. This initiative was completed and, after conducting a strategic review, Latour decided to divest its ownership in Neuffer in order for the company to be able to continue its development with IFN-Holding AG as the new majority owner.

On 1 February, Hultafors Group acquired the entire shareholding of the Swedish company Telesteps AB. Telesteps is a leading manufacturer of telescopic ladders for professional end users. The company is located in Tranås, Sweden, and has worldwide sales. Telesteps' net sales amounted to approximately SEK 87 m in 2021, with profitability in line with Hultafors Group's other operations.

On 7 February, S+S Regeltechnik GmbH, in the Bemsiq business area, entered into an agreement to acquire Consens GmbH. Consens manufactures devices, sensors, components and testing technology for humidity, temperature and air quality. The company was established in 1998 and employs 13 people, and its head office and production site are in Thüringen, Germany. Sales amounted to EUR 2.9 m in 2021, with a level of profitability well above Latour's financial targets.

On 9 February, Latour Industries acquired the Italian company Esse-Ti S.r.l. Esse-Ti is a leading manufacturer of alarm systems for lifts. The company develops, manufactures and sells wired and wireless lift phones, gateways and firecommunication systems to lift operators, specialised distributors and lift manufacturers. Esse-Ti has 33 employees and generates sales of approximately EUR 10 m.

On 18 March, Caljan acquired the entire shareholding of the Austrian company PHS Logistiktechnik GmbH. PHS has developed Rapid Unloader, a system for automatically unloading packages for logistics companies. The system reduces unloading times, increases productivity and improves the working environment at logistics centres. The company was established in 2017 and is based in Graz, Austria, with three employees.

Industrial operations summary

Business area results

	Net sales				Operating profit				Operating margin %
	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021	2022	2021
SEK m	Q2	Q2	6 mths	6 mths	Q2	Q2	6 mths	6 mths	Q2	Q2	6 mths	6 mths
Bemsiq	338	210	659	417	77	45	158	95	22.8	21.4	23.9	22.9
Caljan	556	361	908	570	143	61	191	80	25.7	17.0	21.0	14.1
Hultafors Group	1,614	1,473	3,210	2,586	236	266	485	449	14.6	18.0	15.1	17.4
Latour Industries	977	764	1,798	1,445	90	57	137	119	9.2	7.4	7.6	8.2
Nord-Lock Group	416	375	822	729	112	97	215	196	26.8	26.0	26.1	26.9
Swegon	1,661	1,566	3,185	2,927	154	227	295	383	9.3	14.5	9.3	13.1
Eliminations	-1	-1	-2	-2	-	-	-	-	-	-	-	-
	5,561	4,748	10,580	8,672	812	753	1,481	1,322	14.6	15.9	14.0	15.2
Gain/loss from sale/purchase of
businesses	-	-	-	-	11	-4	40	-18
Other companies and items	-	75	-	138	-21	-8	-35	-17
	5,561	4,823	10,580	8,810	802	741	1,486	1,287
Effect IFRS 16	-	-	-	-	-	-	1	1
	5,561	4,823	10,580	8,810	802	741	1,487	1,288

		Operating capital ¹		Return on operating capital %			Growth in net sales, 2022 %
SEK m	2022 Trailing 12	2021 Trailing 12	2022 Trailing 12	2021 Trailing 12	Total	Organic		Currency Acquisitions
Bemsiq	2,108	1,429	12.3	12.9	58.2	14.5	3.9	33.0
Caljan	2,785	2,581	13.9	8.9	59.4	48.8	6.7	0.3
Hultafors Group	5,638	4,063	15.9	19.4	24.1	3.3	4.8	14.8
Latour Industries	3,018	2,398	8.7	9.3	24.4	7.5	2.4	13.1
Nord-Lock Group	1,267	1,194	30.4	27.7	12.7	4.9	7.4	-
Swegon	3,474	3,196	18.1	23.8	8.8	3.5	3.9	1.2
Total	18,290	14,861	15.4	16.9	22.0	7.6	4.4	8.6

¹ Calculated as total assets less cash and other interest-bearing assets and less non-interest-bearing liabilities. Calculated on the average for the past 12 months.

Industrial operations trailing 12 months

Development by business area

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Net sales	338	210	659	417	927	1,169
EBITDA	83	48	170	101	217	286
EBITDA¹	80	47	163	99	207	270
EBITA¹	77	45	158	96	199	262
EBIT¹	77	45	158	95	198	260
EBITA %¹	22.9	21.5	24.0	23.0	21.5	22.4
EBIT %¹	22.8	21.4	23.9	22.9	21.4	22.3
Total growth %	60.5	21.3	58.2	12.4	27.9
Organic %	17.6	14.7	14.5	9.1	8.7
Exchange effects %	3.9	-3.0	3.9	-3.1	-1.9
Acquisitions %	31.4	9.0	33.0	6.4	19.8
Average number of employees	512	261	496	267	475
¹ Excl. IFRS 16.

Highlights

• Positive order intake growth continues for both Building Automation and Metering, with strong organic growth of 29 per cent.
• There is a further increase in sales growth during the quarter despite some delivery delays caused by the current shortage of components.
• Price adjustments during the quarter and active efforts to secure supplies of components help retain margins and maintain good delivery capacity.

Breakdown of net sales

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Building Automation	261	158	514	309	710	914
Metering	79	53	149	108	221	262
Elimination	-2	-1	-4		-4	-6
	338	210	659	417	927	1,169
Pro forma adjustment¹						62
Trailing 12 month pro forma						1,231

¹ Pro forma for completed acquisitions.

(MEUR)	2022 Q2	2021 Q2	2022 6 mths	2021	2021 6 mths Full Year	Trailing 12 mths
Net sales	53.1	35.8	86.7	56.5	150.6	181.1
EBITDA	14.5	6.7	19.8	9.1	29.6	40.3
EBITDA¹	14.4	6.6	19.5	9.0	29.3	39.8
EBITA¹	13.9	6.3	18.6	8.3	27.8	38.1
EBIT¹	13.6	6.1	18.2	8.0	27.2	37.4
EBITA %¹	26.2	17.5	21.5	14.7	18.4	21.1
EBIT %¹	25.7	17.1	21.0	14.2	18.0	20.7
Total growth %	48.2	74.3	53.5	36.4	34.6
Organic %	43.5	75.4	48.8	37.8	33.9
Exchange effects %	3.3	-0.6	3.2	-1.0	0.5
Acquisitions %	0.6	-	0.3	-	-
Average number of employees	678	568	659	547	580

¹ Excl. IFRS 16.

Highlights

• Invoiced sales exceed the previous year by a clear margin in the Aftermarket and Loading & Unloading (formerly Telescopic) divisions. Organic growth reaches 44 per cent.
• The second quarter begins with a continued high order intake and ends with the order book at a record high of EUR 193 m.
• A clear focus on securing supply chains enables the high level of service to customers to be maintained despite logistical challenges and a shortage of components.
• The establishment of a new factory in Germany is completed during the quarter. A number of new hires are made during the quarter to support continued expansion.

Breakdown of net sales

(MEUR)	2022 Q2	2021 Q2	2022 6 mths	2021	2021 6 mths Full Year	Trailing 12 mths
Loading & Unloading	31.1	22.9	50.0	32.0	75.6	93.7
Document Handling & Labelling	7.3	0.9	11.1	2.3	17.7	26.6
Automated Solutions	2.5	4.4	2.9	7.9	21.9	16.8
Aftermarket	12.2	7.6	22.7	14.3	35.4	43.9
	53.1	35.8	86.7	56.5	150.6	181.1
Pro forma adjustment¹						-

Trailing 12 month pro forma 181.1

¹ Pro forma for completed acquisitions.

Bemsiq is a group of innovative and fast-growing companies providing products in building automation and energy metering. Bemsiq's mission is to accelerate the journey towards SMART and GREEN commercial buildings by being a leading global supplier of sensor, control and connectivity technologies and products.

Caljan is a global supplier of automation technology for parcel handling in the logistics and e-commerce sectors. Caljan's products help packing companies, distributors and manufacturers around the world to optimise their supply chains. Flows are increased, costs are reduced and working environments are made safer and more ergonomic. Caljan has its head office in Aarhus, Denmark, and subsidiaries in the USA and several European countries.

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Net sales	1,614	1,473	3,210	2,586	5,544	6,168
EBITDA	277	297	652	500	983	1,134
EBITDA¹	259	286	529	481	936	984
EBITA¹	242	272	498	458	882	922
EBIT¹	236	266	485	449	860	896
EBITA %¹	15.0	18.5	15.5	17.7	15.9	14.9
EBIT %¹	14.6	18.0	15.1	17.4	15.5	14.6
Total growth %	9.6	75.6	24.1	53.5	52.3
Organic %	-1.8	36.9	3.3	30.0	20.7
Exchange effects %	5.1	-4.8	4.8	-5.2	-2.6
Acquisitions %	6.1	34.7	14.8	24.6	29.5
Average number of employees	1,849	1,676	1,826	1,667	1,686
¹ Excl. IFRS 16.

Highlights

• Total sales are up 9 per cent. Organic growth shifts into a slightly negative trajectory, compared with the extremely strong second quarter last year.
• Increasing raw material prices, transport-related disruptions and exchange rate fluctuations adversely impact earnings, which still however indicate a good performance.
• Price increases that have been announced are gradually introduced during the second quarter and some will be implemented in the third quarter.
• Implementation of investments in digitalisation, marketing and sales initiatives continues with the aim of strengthening the long-term stability and capabilities of the company.

Breakdown of net sales

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
PPE Europe	959	921	1,916	1,567	3,439	3,788
Hardware Europe	316	233	657	446	931	1,142
Hardware North America	338	319	634	573	1,172	1,233
Elimination	1	0	2	-	2	4
	1,614	1,473	3,210	2,586	5,544	6,168
Pro forma adjustment¹						156
Trailing 12 month pro forma						6,324

¹ Pro forma for completed acquisitions.

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Net sales	977	764	1,798	1,445	3,022	3,375
EBITDA	118	81	193	167	397	423
EBITDA¹	105	70	166	145	299	320
EBITA¹	94	60	144	125	257	276
EBIT¹	90	57	137	119	244	262
EBITA %¹	9.6	7.8	8.0	8.7	8.5	8.2
EBIT %¹	9.2	7.4	7.6	8.2	8.1	7.8
Total growth %	28.0	48.0	24.4	27.8	28.3
Organic %	10.1	36.7	7.5	21.1	14.0
Exchange effects %	2.2	-2.4	2.4	-3.0	-1.7
Acquisitions %	13.8	11.0	13.1	8.8	14.5
Average number of employees	1,702	1,518	1,680	1,501	1,606
¹ Excl. IFRS 16.

Highlights

• Order intake grows positively and increases organically by 20 per cent.
• The shortage of components impacts the business units' and their suppliers' ability to deliver, which has negative consequences for invoiced sales.
• Increased costs for raw materials, energy and transport operations affect margins negatively. Further price increases are to be implemented to compensate for the rising costs.

Breakdown of net sales

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Aritco Group	318	258	610	505	1,068	1,173
Vimec	156	125	267	226	490	531
VEGA	64	64	121	121	245	244
Esse-Ti	34	-	45	-	-	45
MS Group	167	135	307	251	511	567
LSAB	157	140	305	268	524	560
Densiq	87	48	155	86	206	275
Elimination	-7	-7	-11	-13	-22	-21
	977	764	1,798	1,445	3,022	3,375
Pro forma adjustment¹						118
Trailing 12 month pro forma						3,493

¹ Pro forma for completed acquisitions.

Hultafors Group offers products in the PPE Europe, Hardware Europe and Hardware North America segments. The products are marketed under brands with strong positions in their respective markets: Snickers Workwear, Solid Gear, EMMA Safety Footwear, Toe Guard, Hellberg Safety, Fristads, Kansas, Leijona, EripioWear, Hultafors, Wibe Ladders, Scangrip, Telesteps, CLC Work Gear, Johnson Level & Tool and Kuny's. The Group is also a distributor for the German manufacturing company Fein in the Swedish market.

Latour Industries consists of a number of operating areas, each with its own business concept and business model. Our ambition is to develop independent entities within the business area, so that they are eventually able to become established as separate business areas within Latour.

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Net sales	416	375	822	729	1,439	1,532
EBITDA	131	117	253	234	443	462
EBITDA¹	124	109	238	218	412	433
EBITA¹	114	100	219	200	375	394
EBIT¹	112	97	215	196	367	386
EBITA %¹	27.4	26.5	26.6	27.4	26.1	25.7
EBIT %¹	26.8	26.0	26.1	26.9	25.5	25.2
Total growth %	10.9	15.8	12.7	7.1	12.9
Organic %	2.5	24.4	4.9	15.3	17.2
Exchange effects %	8.2	-6.9	7.4	-7.2	-3.6
Acquisitions %	-	-	-	-	-
Average number of employees	650	614	652	599	617
¹ Excl. IFRS 16.

Highlights

• Order intake continues on a positive growth trajectory and is in line with invoiced sales during the quarter.
• Good growth in invoiced sales, driven in part by foreign exchange effects.
• The Shanghai region has been in lockdown due to Covid-19 for most of the quarter. This has had a negative impact on invoiced sales and profitability for the operations in China.
• Strong operating profit despite challenging market conditions.
• The Nord-Lock wedge-locking washer was invented 40 years ago and the anniversary has been marked around the world during the quarter.

Breakdown of net sales

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
EMEA	199	174	401	339	649	711
Americas	131	92	245	180	396	461
Asia Pacific	86	109	176	210	394	360
	416	375	822	729	1,439	1,532
Pro forma adjustment¹						-
Trailing 12 month pro forma						1,532

¹ Pro forma for completed acquisitions.

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Net sales	1,661	1,566	3,185	2,927	5,824	6,081
EBITDA	198	264	382	456	871	797
EBITDA¹	179	250	343	428	807	722
EBITA¹	159	230	303	390	733	646
EBIT¹	154	227	295	383	718	630
EBITA %¹	9.6	14.7	9.5	13.3	12.6	10.6
EBIT %¹	9.3	14.5	9.3	13.1	12.3	10.4
Total growth %	6.0	6.4	8.8	2.1	3.7
Organic %	0.3	7.5	3.5	3.2	3.4
Exchange effects %	3.6	-2.7	3.9	-3.4	-1.6
Acquisitions %	2.1	1.7	1.2	2.5	2.0
Average number of employees	2,731	2,509	2,714	2,637	2,655
¹ Excl. IFRS 16.

Highlights

• Demand remains strong with 9 per cent organic growth in order intake and a record high order book.
• Stable growth in the regions UK and North America. Particularly good growth in the Residential segment during the quarter.
• Severe disruptions in the supply chain have had a significant impact on invoiced sales and the operating profit, especially in the Air Handling Units and Cooling & Heating segments. The situation improved towards the end of the quarter but continues to pose challenges.
• Acquisition of the Swiss company Barcol-Air. More details can be found on page 4.

Breakdown of net sales

(SEK m)	2022 Q2	2021 Q2	2022 6 mths	2021	2021 6 mths Full Year	Trailing 12 mths
Sweden	319	351	617	658	1,268	1,228
Rest of Nordic region	323	284	637	553	1,073	1,157
Rest of world	1,019	931	1,931	1,716	3,483	3,697
	1,661	1,566	3,185	2,927	5,824	6,081
Pro forma adjustment¹
Trailing 12 month pro forma
¹ Pro forma for completed acquisitions.

¹ Pro forma for completed acquisitions.

	2022	2021	2022	2021	2021	Trailing
(SEK m)	Q2	Q2	6 mths		6 mths Full Year	12 mths
Air Handling Units	414	449	834	833	1,638	1,639
Cooling & Heating	326	341	606	596	1,158	1,168
Room Units	387	332	708	618	1,270	1,361
Services	118	110	235	217	439	456
Residential	190	145	345	301	575	620
North America	103	84	204	158	329	375
UK & Ireland	208	193	429	371	756	814
Eliminations	-85	-88	-176	-167	-341	-352
	1,661	1,566	3,185	2,927	5,824	6,081

Nord-Lock Group is a world leader in secure bolting solutions. The Group offers a wide range of innovative technologies including Nord-Lock wedge-locking, Superbolt multi-jackbolt tensioning, Boltight hydraulic tensioning and Expander System pivot technology. With a global sales organization and international partners the customers benefit from bolting expertise and the optimum solution for any bolting challenge.

Swegon provides components and innovative system solutions that create a good indoor climate and contribute to significant energy savings in all types of buildings. Swegon's products constitute a turnkey solution for the perfect indoor climate.

The Latour share's net asset value

In order to facilitate the evaluation of Latour's net asset value, Latour provides an estimated range of the value (Enterprise Value) for each business area based on EBIT multiples. The method used to calculate the value of the wholly-owned industrial operations is described in greater detail on the company's website, latour.se.

In some cases, the valuation multiples for comparable companies span a very large range. For this reason, the multiples may be adjusted in order to avoid unreasonable values. The indicative value stated below is not a complete market valuation of Latour's holdings.

During the period, the net asset value declined from SEK 216 per share at the start of the year to SEK 158. The net asset value thereby decreased by 25.5 per cent, while the SIXRX benchmark index decreased by 27.9 per cent. The stock market's development has led to a devaluation of comparable companies' EBIT multiples, which is also reflected in adjusted valuation multiples for some of our unlisted holdings. All other things being equal, this adjustment of valuation multiples has negatively affected Latour's net worth by 3.5 percentage points since the turn of the year.

For some time, Latour's guideline for the net asset value has been considerably lower than the value that the stock market assigns to Latour's listed share. On 30 June 2022, the share price was SEK 202, which can be compared against the indicated net asset value of SEK 158. As stated above, Latour does not claim that the valuation of the wholly-owned industrial operations is anything other than a cautious indication. A net asset value can be calculated on a number of different bases. For example, the industrial operations as a whole could be measured against other established listed industrial groups with mixed industrial holdings and a clear growth agenda. The EV/EBIT multiple for these companies is significantly higher.

SEK m	Net sales¹	EBIT¹	EBIT multiple	Valuation² Range	Valuation² Average		Valuation² SEK/share³ Range
Bemsiq	1,231	267	18 – 22	4,810 – 5,879	5,345	8	–	9
Caljan	1,866	386	19 – 23	7,326 – 8,868	8,097	12	–	14
Hultafors Group	6,324	919	10 – 14	9,194 – 12,872	11,033	14	–	20
Latour Industries	3,493	275	15 – 19	4,123 – 5,223	4,673	6	–	8
Nord-Lock Group	1,532	386	15 – 19	5,784 – 7,326	6,555	9	–	12
Swegon	6,452	642	14 – 18	8,992 – 11,562	10,277	14	–	18
	20,898	2,875		40,229 – 51,730		63	–	81
Industrial operations valuation, average					45,980		72
Listed shares (see table on page 10 for breakdown)					64,926		101
Latour Future Solutions					68		0
Unlisted part-owned holdings Composite Sound⁴, 7.2 % Oxeon⁴, 31.3 %					8 18		0 0
Other assets					-		0
Short trading portfolio Dilution effect of option programme					- -36		0 -0
Consolidated net debt (excl IFRS 16)					-9,814		-15
Estimated value					101,150		158
					(95 400 – 106 900)	(149 –		167)

¹ Trailing 12 months for current company structure (proforma). EBIT is, as appropriate, reported before restructuring costs.

² EBIT and EV/sales recalculated taking into consideration the listed share price on 30 of June 2022 for comparable companies in each business area.

³ Calculated on the basis of the number of outstanding shares.

⁴ Valued according to the book value.

The investment portfolio at 30 June 2022

In the first six months, the value of the investment portfolio decreased by 33.3 per cent, adjusted for changes in the portfolio, while the benchmark index (SIXRX) decreased by 27.9 per cent.

		Cost	Listed share price ²	Market value	Share of votes	Share of equity
Share ¹	Number	SEK m	SEK	SEK m	%	%
Alimak Group	16,016,809	2,134	77	1,240	29.7	29.6
Assa Abloy ³	105,495,729	1,697	217	22,924	29.5	9.5
CTEK	15,280,810	1,054	75	1,147	31.0	31.0
Fagerhult	84,708,480	1,899	45	3,850	48.1	47.8
HMS Networks	12,109,288	250	437	5,287	26.0	25.9
Nederman	10,538,487	306	154	1,621	30.0	30.0
Securitas ³	39,732,600	1,081	88	3,501	29.6	10.9
Sweco ³ ⁴	97,867,440	479	106	10,403	21.2	26.9
Tomra ⁵	62,420,000	1,605	183 NOK	11,756	21.1	21.1
Troax	18,060,000	397	177	3,197	30.2	30.1
Total		10,903		64,926

¹ All holdings are reported as associated companies in the balance sheet.

² The last price paid is used as the listed share price.

as the companies' class B shares. Holdings consisting of both class A and B shares are reported in the table as unit. ³ Due to the limited trading in class A shares in Sweco, and the fact that the class A shares in Assa Abloy and Securitas are unlisted, they have been given the same listed share price

⁴ The cost of the class B shares are SEK 34 m higher than in the parent company through the exercise of call options.

⁵ At the end of the report period, the listed share price was NOK 183 which has been translated to SEK at the exchange rate on the balance sheet date.

Investment portfolio during 2022

Investment portfolio (-33.3%)

Movements in investment portfolio values (SEK billion). The figures include acquired and divested shares but not dividends. * No changes were made to the stock portfolio during the first half year.

Total return 2022 for the portfolio companies

Results and financial position

The Group

The Group's profit after financial items was SEK 2,406 m (2,659 m). Profit after tax was SEK 2,071 m (2,390 m), which is equivalent to SEK 3.23 (3.74) per share. A revaluation of the holding in Alimak has adversely impacted the income statement by SEK -613 m (198 m).

The Group's cash flow during the first six months amounted to SEK 79 (761) m. Cash flow has been negatively affected by a deliberate build-up of stock to secure future deliveries. The Group's cash in hand and liquid investments reached SEK 1,094 m (1,765 m). Interest-bearing debt, excluding pension liabilities and lease liabilities, totalled SEK 10,713 m (8,450 m). The Group's net debt was SEK 11,042 m (7,532 m). Net debt, excluding lease liabilities, was SEK 9,814 m (6,748 m). The equity ratio was 81 (87) per cent calculated on reported equity in relation to total assets, including undisclosed surpluses in associated companies.

In the first quarter, Latour updated the base prospectus for its existing MTN programme and, at the same time, increased the framework amount to SEK 15 billion at the Swedish Financial Supervisory Authority. In May, a green financing framework was published in accordance with the requirements of the EU Taxonomy Regulation and the proposed European Green Bond Standard. This was followed in June by the issue of two green bonds totalling SEK 700 m. As at 30 June 2022, the MTN programme had an outstanding balance of SEK 8,750 m.

There have been no transactions with related parties that have had a material effect on the results or financial position of the Group.

Investments

During the period, SEK 146 m (282 m) was invested in property, plant and equipment, of which SEK 106 m (263 m) was machinery and equipment and SEK 40 m (19 m) was buildings. Fixed assets in newly acquired companies account for SEK 18 m (114 m) of investments for the year.

Parent company

The parent company's profit after financial items was SEK 2,029 m (1,672 m). The parent company's equity ratio was 58 (62) per cent.

The number of class A shares issued is 47,629,848 and the number of class B shares is 592,210,152. Not including repurchased shares, the number of outstanding shares on 30 June 2022 amounted to 639,425,100. At the end of the period, Latour holds 414,900 repurchased class B shares.

The total number of issued call options is 1,814,200, which give the right to purchase the same number of shares.

Events after the reporting period

On August 2, the listed company Alimak Group announced that they had entered into an agreement to acquire Tractel. Latour supports the acquisition and, as the principal owner, has undertaken to participate with its pro rata share in the new issue which is part of Alimak's financing of the acquisition.

On August 22, Swegon signed an agreement to acquire ABC Ventilationsprodukter.

Risks and uncertainties

The main risk to which the Group and the parent company are exposed is the risk attributable to adverse changes in the values of financial instruments, including a general decline in the stock market or in the value of an individual holding. This includes uncertainties relating to changes in exchange rates and interest rates. Latour has a well-diversified holding of shares, spread across ten listed holdings and six wholly-owned business areas. This means that the development and performance of an individual holding will not have a drastic impact on the portfolio as a whole. As the wholly-owned industrial operations have increased in size, Latour as a whole is influenced to a higher degree by changes attributable to these operations. On the whole, Latour is deemed to have a good risk diversification in its portfolio, which covers several industries, with a certain emphasis on sectors linked to the construction industry. Construction can also be divided into several dimensions, such as new builds or government-subsidised repair, conversion or extension work, locally or globally, and housing, office and industrial premises or infrastructure projects. No material risks are deemed to have arisen other than those described in Note 34 of Latour's 2021 Annual Report, except for the possible consequences of Russia's invasion of Ukraine.

Accounting policies

This interim report has been prepared in accordance with the Swedish Annual Accounts Act and IAS 34 Interim Reporting in respect of the Group, and in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Accounting for Legal Entities of the Swedish Financial Reporting Board in respect of the parent company.

Changes to accounting standard requirements that came into effect on 1 January 2022 have not had any impact on the Group's or the parent company's accounting as at 30 June 2022.

The Latour Group uses a number of economic indicators that are not defined in the set of accounting rules used by the Group, so-called alternative performance measures. Definitions of the economic indicators can be found on page 20 of this report and in Latour's latest Annual Report. For an explanation of how the financial performance measures have been calculated for the current and prior periods, please see the table in this report and Latour's latest Annual Report.

The Annual Reports for 1984 to 2021 are available for viewing on Latour's website www.latour.se.

Gothenburg, 23 August 2022 Johan Hjertonsson President and CEO

The Board of Directors and the Chief Executive Officer declare that the statements for the six-month period give a true and fair view of the company's and the Group's operations, financial positions and performance, and describe the principal risks and uncertainties faced by the company and the Group's companies.

Gothenburg, 23 August 2022 Investment AB Latour

Mariana Burenstam Linder Board member

Olle Nordström Chairman

Anders Böös Board member

Carl Douglas Board member

Johan Hjertonsson Board member and Chief Executive Officer Eric Douglas Board member

Lena Olving Board member Ulrika Kolsrud Board member

Joakim Rosengren Board member

Consolidated income statement

	2022	2021	2022	2021	12 mths Jul-Jun	Full Year
SEK m	Q2	Q2	6 mths	6 mths	2021/2022	2021
Net sales	5,561	4,823	10,580	8,810	20,337	18,567
Cost of goods sold	-3,439	-2,924	-6,543	-5,347	-12,675	-11,479
Gross profit	2,122	1,899	4,037	3,463	7,662	7,088
Sales costs	-807	-705	-1,564	-1,321	-3,050	-2,807
Administrative costs	-421	-333	-813	-638	-1,502	-1,327
Research and development costs	-144	-120	-278	-230	-524	-476
Other operating income	59	30	130	64	256	190
Other operating expenses	-7	-30	-25	-50	-87	-112
Operating profit	802	741	1,487	1,288	2,755	2,556
Income from interests in associates	212	621	781	1,343	1,817	2,379
Income from portfolio management	-	1	1	1	12	12
Management costs	-8	-6	-16	-13	-31	-28
Profit before financial items	1,006	1,357	2,253	2,619	4,553	4,919
Finance income	173	-26	224	86	324	186
Finance expense	-37	-16	-71	-46	-145	-120
Profit after financial items	1,142	1,315	2,406	2,659	4,732	4,985
Taxes	-202	-136	-335	-269	-670	-604
Profit for the period	940	1,179	2,071	2,390	4,062	4,381
Attributable to:
Parent company shareholders	938	1,178	2,068	2,389	4,056	4,377
Non-controlling interests	2	1	3	1	6	4
Earnings per share regarding profit attributable to parent company
shareholders
Basic share, SEK	1.47	1.84	3.23	3.74	6.34	6.85
Diluted share, SEK	1.46	1.84	3.22	3.72	6.32	6.82
Average number of basic shares outstanding	639,355,401	639,409,233	639,339,191	639,394,449	639,381,887	639,409,289
Average number of diluted shares outstanding	641,479,601	641,391,122	641,535,490	641,446,454	641,498,550	641,454,398
Number of outstanding shares	639,425,100	639,472,800	639,425,100	639,472,800	639,425,100	639,322,800

Consolidated statement of comprehensive income

	2022	2021	2022	2021	12 mths Jul-Jun	Full Year
SEK m	Q2	Q2	6 mths	6 mths	2021/2022	2021
Profit for the period	940	1,179	2,071	2,390	4,062	4,381
Other comprehensive income:
Items that will not be recycled to the income statement
Restatement of net pension obligations	-	-	-	-	8	8
	0	0	0	0	8	8
Items that may subsequently be recycled to the income statement
Change in translation reserve for the period	535	-137	706	165	959	418
Change in fair value reserve for the period	-	-	-	-	-	-
Change in hedging reserve for the period	-114	34	-65	-45	-78	-58
Change in associated companies' equity	273	678	547	-79	387	-239
	694	575	1,188	41	1,268	121
Other comprehensive income, net after tax	694	575	1,188	41	1,276	129
Comprehensive income for the period	1,634	1,754	3,259	2,431	5,338	4,510
Attributable to:
Parent company shareholders	1,632	1,754	3,256	2,431	5,331	4,506
Non-controlling interests	2	-	3	-	7	4

Consolidated cash flow

	2022	2021	2022	2021	12 mths Jul-Jun	Full Year
SEK m	Q2	Q2	6 mths	6 mths	2021/2022	2021
Operating cash flows before movements in working capital	799	779	1,448	1,314	2,815	2,681
Movements in working capital	-576	-255	-1,369	-553	-1,725	-909
Operating cash flows	223	524	79	761	1,090	1,772
Acquisitions of subsidaries	-102	-105	-356	-1,077	-1,568	-2,289
Sale of subsidaries	-	-	100	-	100	-
Other investments	-98	-87	57	-170	-55	-282
Portfolio management	1,116	837	1,100	807	207	-86
Cash flow after investments	1,139	1,169	980	321	-226	-885
Financial payments	-985	-1,044	-1,484	-2,622	-563	-1,701
Cash flow for the period	154	125	-504	-2,301	-789	-2,586

Consolidated balance sheet

SEK m	2022/06/30	2021/06/30	2021/12/31
ASSETS
Goodwill	12,957	11,081	12,266
Other intangible assets	401	329	329
Property, plant and equipment	2,985	2,365	3,020
Financial assets	22,988	20,923	22,723
Inventories etc.	5,010	2,899	3,796
Current receivables	5,251	4,366	4,287
Cash and bank	1,094	1,765	1,516
Total assets	50,686	43,728	47,937
EQUITY AND LIABILITIES
Capital and reserves attributable to parent company shareholders	32,667	29,506	31,553
Non-controlling interests	54	83	133
Total equity	32,721	29,589	31,686
Inerest-bearing long-term liabilities	10,406	8,932	10,502
Non-interest-bearing long-term liabilities	752	635	725
Interest-bearing current liabilities	1,788	536	661
Non-interest-bearing current liabilities	5,019	4,036	4,363
Equity and liabilities	50,686	43,728	47,937

Consolidated changes in equity

	Share	Repurchased	Other	Profit brought	Non-controlling
SEK m	capital	treasury shares	reserves	forward	interests	Total
Closing balance 31 Dec 2020	133	-83	-1	29,018	81	29,148
Opening balance 1 Jan 2021	133	-83	-1	29,018	81	29,148
Total comprehensive income for the period			119	2,310	2	2,431
Issued call options				1		1
Exercise of call options		102		-42		60
Own shares repurchase		-133				-133
Dividends				-1,918		-1,918
Closing balance 30 June 2021	133	-114	118	29,369	83	29,589
Opening balance 1 July 2021	133	-114	118	29,369	83	29,589
Total comprehensive income for the period			239	1,837	3	2,079
Non-controlling interests on acquisitions					47	47
Issued call options				21		21
Own shares repurchase		-50				-50
Closing balance 31 December 2021	133	-164	357	31,227	133	31,686
Opening balance 1 Jan 2022	133	-164	357	31,227	133	31,686
Total comprehensive income for the period			640	2,615	4	3,259
Non-controlling interests on acquisitions					-83	-83
Exercise of call options		144		-94		50
Own shares repurchase		-81				-81
Dividends				-2,110		-2,110
Closing balance 30 June 2022	133	-101	997	31,638	54	32,721

Key ratios, Group

	2022/06/30	2021/06/30	2021/12/31
Return on equity (%)	13	16	14
Return on total capital (%)	10	13	11
Equity ratio, incl IFRS 16 (%)	65	68	66
Equity ratio, excl IFRS 16 (%)	66	69	68
Adjusted equity ratio, incl IFRS 16 ¹ (%)	81	87	87
Adjusted equity ratio, excl IFRS 16 ¹ (%)	82	87	88
Adjusted equity ¹ (SEK m)	75,323	91,343	108,004
Surplus value in associated companies² (SEK m)	42,602	61,754	76,318
Net debt/equity ratio 1 (%) ³	14.8	8.4	8.9
Net debt/equity ratio 2 (%) ⁴	10.0	6.0	7.5
Listed share price (SEK)	202	281	369
Repurchased shares	414,900	367,200	517,200
Average number of repurchased shares	500,809	445,551	430,711
Average number of employees	8,120	7,278	7,684
Issued call options corresponds to number of shares	1,814,200	1,594,900	2,269,200

¹ Incl. fair value gain in associated companies.

² The difference between the carrying amount and market value.

³ The ratio of net debt to adjusted equity.

⁴ The ratio of net debt to the market vaule of total assets.

Parent company income statement

	2022	2021	2022	2021	12 mths Jul-Jun	Full Year
SEK m	Q2	Q2	6 mths	6 mths	2021/2022	2021
Income from interests i Group companies	1,057	970	1,057	970	1,057	970
Income from interest in associates companies	983	709	983	709	1,145	871
Income from portfolio management	-	-	-	-	-	-
Management costs	-7	-5	-13	-10	-25	-22
Profit before financial items	2,033	1,674	2,027	1,669	2,177	1,819
Interest income and similar items	13	10	23	19	45	41
Interest expense and similar items	-11	-8	-21	-16	-42	-37
Profit after financial items	2,035	1,676	2,029	1,672	2,180	1,823
Taxes	-	-	-	-	-	-
Profit for the period	2,035	1,676	2,029	1,672	2,180	1,823

Parent company statement of comprehensive income

	2022	2021	2022	2021	12 mths Jul-Jun	Full Year
SEK m	Q2	Q2	6 mths	6 mths	2021/2022	2021
Profit for the period	2,035	1,676	2,029	1,672	2,180	1,823
Change in fair value reserve for the period	-	-	-	-	-	-
Total other comprehensive income	0	0	0	0	0	0
Comprehensive income for the period	2,035	1,676	2,029	1,672	2,180	1,823

Parent company balance sheet

SEK m	2022/06/30	2021/06/30	2021/12/31
ASSETS
Financial assets	13,440	12,386	13,440
Long-term receivables from Group companies	7,000	6,666	7,300
Current receivables from Group companies	343	396	75
Other current liabilities	35	23	21
Cash and bank	-	-	390
Total assets	20,818	19,471	21,226
EQUITY AND LIABILITIES
Equity	12,040	12,030	12,152
Interese-bearing long-term lilabilities	8,750	7,416	9,050
Non-interest-bearing long-term liabilities	-	-	-
Interese-bearing current liabilities	-	-	-
Non-interest-bearing current liabilities	28	25	24
Equity and liabilities	20,818	19,471	21,226

Parent company statement of changes in equity

SEK m	2022/06/30	2021/06/30	2021/12/31
Amount at beginning of year	12,152	12,348	12,348
Total comprehensive income for the period	2,029	1,672	1,823
Issued call options	-	1	22
Exercise of call options	50	-42	-42
Repurchased treasury shares	-81	-31	-81
Dividends	-2,110	-1,918	-1,918
Amount at end of year	12,040	12,030	12,152

Segment reporting:

Development by business area 1 Jan 2022 – 30 June 2022

	Industrial operations
			Hultafors	Latour	Nord-Lock			Portfolio
SEK m	Bemsiq	Caljan	Group	Industries	Group	Swegon	Other	management	Total
INCOME
External sales	657	908	3,210	1,798	822	3,185			10,580
Internal sales	2								2
RESULT
Operating profit	158	191	485	137	215	295	6		1,487
Income from portfolio management								766	766
Finance income									224
Finance expense									-71
Taxes									-335
Profit for the period									2,071
OTHER DISCLOSURES
Investments in:
property, plant and equipment	4	40	26	20	12	43	1		146
intangible assets	32	61	113	109	-	109			424
Depreciation/amortisation	5	14	44	29	24	48	132		296

Development by business area 1 Jan 2021 – 30 June 2021

	Industrial operations
			Hultafors	Latour	Nord-Lock			Portfolio
SEK m	Bemsiq	Caljan	Group	Industries	Group	Swegon	Other	management	Total
INCOME
External sales	415	570	2,586	1,445	729	2,927	138		8,810
Internal sales	2								2
RESULTS
Operating result	95	80	449	119	196	383	-34		1,288
Income from portfolio management								1,331	1,331
Finance income									86
Finance expense									-46
Taxes									-269
Profit for the period									2,390
OTHER DISCLOSURES
Investments in:
property, plant and equipment	11	9	169	26	10	57			282
intangible assets	192	2	398	392	-	2			986
Depreciation/amortisation	4	10	32	27	22	45	98		238

Change in consolidated interest-bearing net debt

SEK m	2021/12/31	Change in cash	Change in loans	Other changes	2022/06/30
Interest-bearing receivables	23			3	26
Swap	111			-79	32
Cash	1,516	-522		100	1,094
Pensions provisions	-228			-19	-247
Leas liabilities long-term	-846			-149	-995
Long-term liabilities	-9,428		361	-97	-9,164
Utilised bank overdraft facilities	-114		-106		-220
Leas liabilities short-term	-224			-9	-233
Interest-bearing current liabilities	-323		-1,012		-1,335
Interest-bearing net debt	-9,513	-522	-757	-250	-11,042

Credit maturity structure

		Additional					Undrawn bank
	MTN	Bank/RCF	Other debts	purchase price	Total	%	facilities
Overdraft facilities		213			213	2%	235
0-1 year	1,700		27	6	1,733	16%
1-2 year	850	235	34	47	1,166	11%	1,565
2-3 year	3,000			77	3,077	29%	2,535
3-4 year	1,450				1,450	14%
4-5 year	1,750		83	98	1,931	18%
>5 years		1,068	75		1,143	11%
	8,750	1,516	219	228	10,713	100%	4,335
Undrawn MTN	6,250
Frame MTN	15,000

Five-year overview

SEK m	Jul-Jun 2021/2022	2021	2020	2019	2018
Net sales, SEK m	20,337	18,567	15,028	13,738	11,785
Operating profit, SEK m	2,755	2,556	2,057	1,819	1,397
Income from interest in associated companies, SEK m	1,817	2,379	3,977	3,955	1,278
Income from portfolio management, SEK m	-19	-16	-36	194	2
Profit after finance items, SEK m	4,732	4,985	5,753	5,725	2,646
Earnings per share, SEK	6.34	6.87	8.32	8.33	3.66
Return on equity, %	13.0	14.0	19.0	22.0	11.0
Return on total capital, %	10.3	11.0	15.0	17.0	9.0
Adjusted equity ratio, %	82	88	86	86	86
Net debt/equity ratio, %	14.8	8.9	7.1	11.3	9.2

Note 1 Business combinations

Specification of acquisitions

					Contributed
Transfer date		Country	Business area	Share	Revenues	EBITmber of employees
1 February 2022	Telesteps AB	Sweden	Hultafors Group	100%	27	3	6
7 February 2022	Consens GmbH	Germany	Bemsiq	100%	10	3	13
9 February 2022	Esse-Ti S.r.l.	Italy	Latour Industries	100%	45	10	33
18 Mars 2022	PHS Logistiktechnik GmbH	Austria	Caljan	100%	3	-1	3
3 June 2022	Barcol-Air	Switzerland	Swegon	100%	38	0	90

Assets and liabilities in acquisitions

	Consolidated carrying amount
Intangible assets	64
Property, plant and equipment	21
Inventories	88
Account receivable	62
Other receivable	105
Cash	100
Long-term liabilities	-150
Current liabilities	-154
Net indentifiable assets and liabilities	170
Group goodwill	304
Total purchase price	474
Additional purchase price	-20
Cash settlement purchase price	454
Acquisition of non-cash items	2
Acquired cash	-100
Effect of Group cash	356

All acquisitions have been made with the aim of strengthening and developing the Latour Group's existing operations. The acquisition cost calculations are preliminary and may change if new information becomes available.

Transaction costs for acquisitions made during the period amount to SEK 10 m. Estimated additional purchase prices amounting to SEK 20 m have been booked for the acquisition of Telesteps AB.

Note 2 Disclosures about financial assets and liabilities

Classification of financial instruments

THE GROUP 30 JUNE 2022

		Financial assets	Derivatives
	Available-for-sales	values at fair value	used for	Total carrying
	financial assets	via profit and loss	hedging purposes	amount
FINANCIAL ASSETS
Listed shares, management	0¹			0
Other long-term securities holdings	57²			57
Other long-term receivables			35³	35
Listed shares, trading		0¹		0
Unrealised gains, currency derivatives	70²			70
Other current receivables			4 526³	4,526
Cash			1 094³	1,094
Total	127	0	5,655	5,782
FINANCIAL LIABILITIES
Long-term loans			9 164³	9,164
Bank overdraft facilities			220³	220
Current loans			1 335³	1,335
Other liabilities			3 188³	3,188
Unrealised gains, currency derivatives	2²			2
Total	2	0	13,907	13,909

¹ Level 1 – valued at fair value based on quoted prices on an active market for identical assets.

² Level 2 – valued at fair value based on other observable inputs for assets and liabilities than quoted price included in level 1.

³ Level 3 – valued at fair value based on inputs for assets and liabilities unobservable to the market.

The basis of fair value for listed financial assets is the quoted market price at the balance sheet date. The basis of fair value for unlisted financial assets is determined using valuation techniques, such as recent transactions, the price of comparable instruments or discounted cash flows.

Hedging instruments consist of forward exchange contracts and interest rate and currency swaps and are included in level 2. Valuation at fair value of forward exchange contracts is based on levels established by the bank on an active market.

The fair value of accounts receivable and other receivables, current receivables, cash and other liquid funds, accounts payable and other liabilities as well as long-term liabilities is estimated to be the same as their carrying amount. Market interest is not believed to materially deviate from the discount rate for interest-bearing long-term liabilities and therefore the carrying amount is considered in essence equal to the fair value.

The Group's valuation process is carried out by the Group finance and treasury department, where a team works with valuation of the financial assets and liabilities held by the Group.

Note 3 Breakdown of revenues

Revenue by category

THE GROUP 30 JUNE 2022

	2022	2021	2021
SEK m	6 mths	6 mths	Full Year
Renenue from goods	10,024	8,323	17,551
Renenue from services	556	487	1,016
	10,580	8,810	18,567
Fix-price contract	8,364	7,213	14,598
Time-and-materials contracts	2,216	1,597	3,969
	10,580	8,810	18,567
Sweden	1,784	1,669	3,331
Nordics, excl. Sweden	1,756	1,328	2,733
Europe, excl. Nordics	4,829	4,082	8,707
Other markets	2,211	1,731	3,796
	10,580	8,810	18,567

Latour's revenues are derived from a variety of operations that are conducted in more than a hundred subsidiaries.

Information by quarter

	2022		2021					2020
SEK m	Q2	Q1	Full Year	Q4	Q3	Q2	Q1	Full Year	Q4	Q3	Q2	Q1
INCOME STATEMENT
Net sales	5,561	5,019	18,567	5,324	4,433	4,823	3,987	15,028	4,053	3,692	3,605	3,678
Cost of goods sold	-3,439	-3,104	11,479	-3,344	-2,788	-2,924	-2,423	-9,151	-2,472	-2,236	-2,209	-2,234
Gross profit	2,122	1,915	7,088	1,980	1,645	1,899	1,564	5,877	1,581	1,456	1,396	1,444
Costs etc. for the operation	-1,320	-1,230	-4,532	-1,297	-1,060	-1,158	-1,017	-3,820	-1,006	-860	-935	-1,019
Operating profit	802	685	2,556	683	585	741	547	2,057	575	596	461	425
Total portfolio management	204	562	2,363	412	620	616	715	3,941	991	836	2,469	-355
Profit before financial items	1,006	1,247	4,919	1,095	1,205	1,357	1,262	5,998	1,566	1,432	2,930	70
Net financial items	136	17	66	9	17	-42	82	-245	-120	-40	-121	46
Profit after financial items	1,142	1,264	4,985	1,104	1,222	1,315	1,344	5,753	1,446	1,382	2,809	116
Taxes	-202	-133	-604	-171	-164	-136	-133	-429	-157	93	-67	-112
Profit for the period	940	1,131	4,381	933	1,058	1,179	1,211	5,324	1,289	1,289	2,742	4
KEY RATIOS
Earnings per share, SEK	1.47	1.77	6.85	1.46	1.65	1.84	1.89	8.32	2.01	2.02	4.29	0.01
Cash flow for the period	154	-658	-2,586	566	-851	125	-2,426	3,102	537	483	2,053	1,606
Adjusted equity ratio, %	82	86	88	88	86	87	88	86	86	85	82	80
Adjusted equity	75,323	89,576		108,004 108,004	91,673	91,363	83,820	77,245	77,245	77,112	67,933	59,626
Net asset value		101,150 119,142		137,845 137,845 120,046 120,505 106,003				98,024	98,024	94,584	81,418	72,863
Net asset value per share, SEK	158	186	216	216	188	188	166	153	153	148	127	114
Listed share price, SEK	202	301	369	369	272	281	226	200	200	211	169	142
NET SALES
Bemsiq	338	321	927	291	220	210	206	725	188	166	173	197
Caljan	556	352	1,527	554	403	859	209	1,176	424	311	219	222
Hultafors Group	1,614	1,596	5,546	1,648	1,310	1,353	1,113	3,641	1,041	915	839	846
Latour Industries	977	821	3,022	884	693	873	681	2,356	667	559	516	615
Nord-Lock Group	416	406	1,439	353	357	402	354	1,274	294	300	324	357
Swegon	1,661	1,524	5,824	1,523	1,374	1,796	1,361	5,614	1,376	1,372	1,472	1,394
	5,561	5,019	18,280	5,252	4,356	5,675	3,924	14,783	3,990	3,622	3,542	3,631
Other companies and eliminations	0	0	287	71	77	87	63	245	64	70	63	47
	5,561	5,019	18,567	5,323	4,433	5,762	3,987	15,028	4,054	3,692	3,605	3,678
OPERATING PROFIT
Bemsiq	77	81	198	45	58	45	50	165	47	41	35	42
Caljan	143	48	276	118	77	61	19	207	93	58	27	30
Hultafors Group	236	250	860	241	170	266	183	561	182	157	114	108
Latour Industries	90	47	244	68	57	57	62	147	58	46	13	29
Nord-Lock Group	112	103	367	74	98	97	99	316	52	83	84	97
Swegon	154	140	718	177	158	227	156	721	160	217	201	143
	812	669	2,663	723	618	753	569	2,117	593	602	474	449
Gain/loss from sale/purchase of business	11	29	-51	-8	-25	-4	-14	-38	-12	1	-10	-17
Other companies and items	-21 802	-14 684	-56 2,556	-32 683	-9 584	-8 741	-9 546	-22 2,057	-6 575	-4 599	-7 457	-8 424
OPERATING MARGIN (%)
Bemsiq	22.8	25.1	21.4	15.5	26.2	21.4	24.4	22.7	24.9	25.0	20.0	21.1
Caljan	25.7	13.7	18.1	21.4	19.2	17.0	9.1	17.6	17.6	18.7	12.2	13.3
Hultafors Group	14.6	15.6	15.5	14.6	13.0	18.0	16.5	15.4	17.5	17.1	13.6	12.8
Latour Industries	9.2	5.7	8.1	7.7	8.3	7.4	9.1	6.3	8.8	8.2	2.6	4.8
Nord-Lock Group	26.8	25.3	25.5	20.8	27.3	26.0	27.8	24.8	17.7	27.6	25.8	27.3
Swegon	9.3	9.2	12.3	11.6	11.5	14.5	11.5	12.8	11.6	15.8	13.7	10.2
	14.6	13.3	14.6	13.8	14.2	15.9	14.5	14.3	14.8	16.6	13.4	12.4

Definitions of key ratios

Organic growth

Change in sales in comparable entities after adjustment for acquisitions and foreign exchange effects.

Operating profit (EBITDA)

Earnings before interest, tax, depreciation of property, plant and equipment and amortisation of acquisition-related intangible assets, acquisition-related costs and income, and items impacting comparability.

Operating profit (EBITA)

Earnings before interest, tax, amortisation of acquisitionrelated intangible assets, acquisition-related costs and income, and items impacting comparability.

Operating margin (EBITA) %

Earnings before interest, tax, amortisation of acquisitionrelated intangible assets, acquisition-related costs and income, and items impacting comparability, as a percentage of net sales.

Operating profit (EBIT)

Earnings before interest and tax.

Operating margin (EBIT) %

Operating profit divided by net sales.

Operating capital

Total assets less cash and cash equivalents, other interestbearing assets and non-interest-bearing liabilities. Calculated on the average for the past 12 months.

Total growth

Increase in revenue for the period as a percentage of the previous year's revenue.

Currency-driven growth

Increase in revenue due to currency changes for the period as a percentage of the previous year's revenue.

Organic growth

Increase in revenue for the period, adjusted for acquisitions/disposals and exchange rate changes, as a percentage of the previous year's revenue adjusted for acquisitions and disposals.

Basic earnings per share

Profit for the period divided by the number of outstanding shares in the period. Calculations:

Jan-June 2022: 2,068/639,339,191 x 1000' = 3.23 Jan-June 2021: 2,389/639,394,449 x 1000' = 3.74

Diluted earnings per share

Calculations:

Jan-June 2022: 2,068/641,535,490 x 1000' = 3.22 Jan-June 2021: 2,389/641,446,454 x 1000' = 3.72

Equity ratio

The ratio of shareholder equity to total assets.

Adjusted equity ratio

The ratio of shareholder equity plus gains in associated companies to total assets including gains in associated companies.

Net borrowings

Interest-bearing liabilities less cash and cash equivalents and interest-bearing receivables.

Net debt/equity ratio

The ratio of net borrowings to either adjusted equity or the market value of total assets.

Return on equity

The ratio of net income booked in the income statement to average equity.

Return on total capital

The ratio of profit/loss after financial items plus finance expense to average total assets.

Return on operating capital

The ratio of operating profit to average operating capital.

Direct return

Dividends as a percentage of the share purchase price.

EBIT multiple

The ratio of operating profit to market value adjusted for net debt.

Net asset value

The difference between the company's assets and liabilities, when the investment portfolio (incl. associated companies) is recognised at market value and operative subsidiaries that are owned at the end of the period are recognised in an interval based on EBIT multiples for comparable listed companies in each business area.

Share of voting rights

Share of voting rights is calculated after deduction for repurchased shares.

Share of equity

Share of equity is calculated on total number of issued shares.

Other

The amounts in tables and other charts have each been rounded off. There may therefore be minor differences in the totals due to rounding-off.

For further information, please contact:

Johan Hjertonsson, President and CEO, tel. +46 (0)702-29 77 93. Anders Mörck, Chief Financial Officer, tel. +46 (0)706-46 52 11 or +46 (0)31-89 17 90.

Presentation of performance for the quarter:

Investment AB Latour invites you to participate in a conference call with Johan Hjertonsson and Anders Mörck commencing at 10 a.m. today. The number to call is +46 (0)8-566 427 07. The conference will be broadcast on the Internet.

To follow the presentation, please visit our website, www.latour.se.

Financial dates:

The interim report for the period January – September 2022 will be published on 8 November 2022 The 2022 Year-End Report will be published on 10 February 2023 The interim report for the period January – March 2023 will be published on 28 April 2023 The interim report for the period January – June 2023 will be published on 21 August 2023 The interim report for the period January – September 2023 will be published on 07/11/2023

The information contained in this report constitutes information which Investment AB Latour (publ) is required to disclose under the EU Market Abuse Regulation. The information was provided by the above contact persons for publication on 23 August 2022 at 8.30 a.m. CEST.

Investment AB Latour (publ) Corporate ID no. 556026–3237 J A Wettergrens gata 7, Box 336, SE-401 25 Gothenburg, Sweden Tel +46 (0)31-89 17 90, info@latour.se, www.latour.se