Elanders

Quarterly Report • Jul 12, 2022

ELANDERS | QUARTERLY REPORT JANUARY – JUNE 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
• 8 Parent Company
• 9 Other Information
• 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:

Magnus Nilsson Andréas Wikner

President and CEO Chief Financial Officer

Elanders AB (publ)

2 ELANDERS | Q2 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 and the Securities Markets Act.
The information was submitted for publication,
through the agency of the contact persons set out
above, at 07:30 CET on 12 July 2022.

NET SALES, MSEK

NETTOOMSÄTTNING, MKR

ADJUSTED EBITA, MSEK

ADJUSTED EBIT, MSEK

EBIT, MKR

EBITA, MKR

First six months 2022

• Net sales increased to MSEK 6,897 (5,504), which corresponded to organic growth of three percent, excluding acquisitions and using unchanged exchange rates. Strong organic growth in the newly acquired Bergen Logistics in USA resulted in high double-digit growth figures.
• EBITA increased to MSEK 450 (287) but contained some one-off items that had a positive effect of about net MSEK 40. Most of this came from a revaluation of shares in associated companies in connection with a merger. Excluding one-off items, the EBITA margin was 6.0 (5.2) percent and the result improved by 43 percent.
• The result before tax increased to MSEK 335 (213), which was an improvement of 38 percent, excluding one-off items.
• The net result increased to MSEK 231 (154), corresponding to SEK 6.32 (4.29) per share.
• Operating cash flow for the period increased to MSEK 487 (367), of which purchase price for acquisitions was MSEK 0 (–46).

Second quarter 2022

• Net sales increased to MSEK 3,525 (2,769), which corresponded to organic growth of four percent, excluding acquisitions and using unchanged exchange rates. Strong organic growth in the newly acquired Bergen Logistics continued in USA resulting in high double-digit growth figures.
• EBITA increased to MSEK 264 (145), but contained some one-off items that had a positive effect of about net MSEK 40. Most of this came from a revaluation of shares in associated companies in connection with a merger. Excluding one-off items, the EBITA margin was 6.3 (5.2) percent and the result improved by 54 percent.
• Component shortages, due to the zero-tolerance policy in China concerning COVID-19 and the war in Ukraine, led to disruptions in production for several of the Group's major customers. High material and fuel prices also had a negative effect on the Group's profitability.
• The result before tax increased to MSEK 206 (110), which was an improvement of 51 percent, excluding one-off items.
• The net result increased to MSEK 143 (86), corresponding to SEK 3.91 (2.38) per share.
• Operating cash flow was MSEK 187 (260), of which acquisitions were MSEK 0 (0).
• An agreement has been signed with a new customer in online print with estimated annual sales of approximately MSEK 100.
• On July 1, 2022, Elanders signed a contract to acquire all the shares in the British company Bonds Worldwide Express Ltd. Annual net sales in the company are around MGBP 5 and the purchase price corresponded to this amount.

	First six months		Second quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales, MSEK	6,897	5,504	3,525	2,769	13,126	11,733
EBITDA, MSEK	937	684	507	343	1,721	1,468
EBITA, MSEK 1)	450	287	264	145	804	641
EBITA adjusted, MSEK 1) 3)	410	287	224	145	781	658
EBITA-margin, % 1)	6.5	5.2	7.5	5.2	6.1	5.5
EBITA-margin adjusted, % 1) 3)	6.0	5.2	6.3	5.2	6.0	5.6
Result before tax, MSEK	335	213	206	110	604	482
Result after tax, MSEK	231	154	143	86	408	331
Earnings per share, SEK	6.32	4.29	3.91	2.38	11.15	9.12
Operating cash flow, MSEK	487	367	187	260	15	–105
Net debt, MSEK	6,304	3,071	6,304	3,071	6,304	5,249
Net debt/EBITDA ratio, times 2)	3.4	2.2	3.1	2.2	3.7	3.6
Net debt/EBITDA ratio excl. IFRS 16, times 2)	2.9	1.9	2.5	1.8	3.2	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

We're very pleased to be able to present a result before tax in the second quarter exclusive one-off revenue that is 51 percent better than last year. This is despite disruptions in the global supply chain and higher costs in general.

We continue to invest in our service area Life Cycle Management and in July we signed a contract to acquire all the shares in Bonds Worldwide Express Ltd. Bonds is a leading actor in special transportation as well as installation of technical equipment in Great Britain with annual net sales of about MGBP 5. They provide a wide range of services including delivery, assembly and installation of advanced technical equipment.

The lockdowns by authorities in China during the first half-year due to COVID-19 have together with the war in Ukraine led to material and component shortages throughout the global supply chain. This has caused production disruptions that have primarily affected our customers in Automotive and Industrial in Europe. At the same time, costs for electricity and fuel have risen sharply.

Despite these challenges, business area Supply Chain Solutions performed better than in the same quarter last year, even excluding revenue from one-off items. This was largely due to high demand in Fashion & Lifestyle on the North American market as well as good development in our Air & Sea operations in Europe. Stable demand in Electronics and Healthcare & Life Science in Europe has also contributed. However, during the period most of the Group's major customers have had problems with material deliveries due to the component shortage.

In business area Print & Packaging Solutions the limited paper supply continued to a certain extent, driving up its price, while the cost for electricity and fuel is also on the rise. Combined with a material and component shortage at our customers, our profitability was negatively affected. Just like several other actors on the market we continued to see a decline in demand for photobooks, calendars and other similar products. Less traveling as well as general anxiety

in Europe about the war in Ukraine, along with escalating prices appear to have a negative effect on consumption.

As online shopping increases, it drives growth in logistics services which is positive for Elanders. This is also an area where we need to help our customers and get them to use more sustainable alternatives. Because we are located in so many places all over the world, we can offer customers warehousing, deliveries and returns management close to the recipients of their products. This both reduces environmental impact and enables shorter delivery times.

Despite component shortages and disturbances in the supply chain, demand continues to be good from our major customers, although some of them are beginning to experience lower demand from their customers. The question is how a higher interest rate and increasing costs will affect general consumption going forward. In any case, it's clear that our strategy of diversifying our offer, broadening our customer base and spreading out more geographically has created a more robust Elanders. This Elanders is better prepared to handle the ever-changing conditions in the world around us.

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

First six months

Net sales increased by MSEK 1,393 to 6,897 (5,504) compared to the same period last year. Cleared of exchange rate fluctuations and acquisitions, net sales increased by three percent. Organic growth was primarily generated by the European division of Supply Chain Solutions. The newly acquired Bergen Logistics had strong organic growth resulting in high double-digit growth figures. Demand from customers continued to be good during the period even if several customers suffered disruptions in production due to the shortage of components and raw material caused by the war in Ukraine. The new acquisition Bergen Logistics had a strong organic growth with high double-digit growth rates.

EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions, increased by MSEK 163 to MSEK 450 (287). Currency fluctuations had a positive effect on EBITA by about MSEK 16, compared to the same period last year. EBITA included some positive one-off items of about net MSEK 40. These were mainly a revaluation of the shares in associated company LOGworks, which affected the result positively by around MSEK 50, and the rest was restructuring and acquisition costs.

Excluding one-off items, the improvement in the result compared to the previous year is primarily generated by the acquisitions made in Supply Chain Solutions last year. Air & Sea operations in Europe in the same business area also contributed to improving the result. However, component and material shortages, price hikes in general, high levels of sick leave at the beginning of the year and the war in Ukraine had a negative effect on the result and profitability. The component and material shortages are a consequence of China's zero tolerance concerning COVID-19 outbreaks and the war in Ukraine. This has then led to irregular capacity utilization in Group units when customers have shut down or added shifts on short notice. The high level of sick leave at the beginning of the year meant hiring a lot of temporary staff. All these disturbances affected the customer segments Automotive and Industrial most.

Second quarter

At the end of the quarter some customers noticed a decline in demand from consumers. High energy, food and fuel prices as well as general anxiety about the ongoing war in Europe is believed to be behind the lower consumption. The Group's largest customers continue to have full order books but several of them are still struggling with material and component shortages.

Supply Chain Solutions

Elanders is one of the leading companies in the world in Global Supply Chain Management. Our services include taking responsibility for and optimizing customers' material and information flows, everything from sourcing and procurement combined with warehousing to after sales service.

Net sales grew organically in business area Supply Chain Solutions by nine percent during the first half-year and eleven percent in the quarter, excluding acquisitions and using unchanged exchange rates. Organic growth was driven both by new business and by higher shipping rates for freight forwarding volumes. There are some signs of a slowdown in demand from consumers in certain areas caused, it seems, by general anxiety concerning higher costs of living and the war in Ukraine.

Component shortages continued to create disruptions in production and supply chains for several business area customers during the period, particularly in customer segments Automotive and Industrial. Disturbances led to irregular capacity utilization 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.

Despite these challenges, business area Supply Chain Solutions performed better than in the same quarter last year, even excluding revenue from one-off items. This was largely due to high demand and growth in Fashion & Lifestyle on the North American market as well as good development in our Air & Sea operations in Europe. New acquisitions, including Bergen Logistics, developed positively during the period and Bergen Logistics generated high double-digit growth figures. Stable demand in Electronics and Healthcare & Life Science in Europe has also contributed to the positive result development.

The business area's result was affected positively during the period by some one-off items of about net MSEK 40. Most of these were generated when the shares in associated company LOGworks was revalued to fair value in connection with its merger with another external company.

81%

Share of 82%

EBITA (12 months)

	First six months		Second quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales, MSEK	5,683	4,228	2,914	2,168	10,659	9,204
EBITDA, MSEK	839	569	459	291	1,470	1,200
EBITA, MSEK 1)	428	238	252	127	702	512
EBITA adjusted, MSEK 1) 2)	388	238	212	127	679	529
EBITA-margin, %	7.5	5.6	8.7	5.9	6.6	5.6
EBITA-margin adjusted, % 1) 2)	6.8	5.6	7.3	5.9	6.4	5.8
Average number of employees	5,830	4,907	5,908	4,923	5,502	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 innovative force and global presence, the business area Print & Packaging offers cost-effective solutions that can handle customers' local and global needs for printed material and packaging, often in combination with advanced order platforms on the Internet, value-added services and just-in-time deliveries.

In business area Print & Packaging Solutions, net sales have continued to decrease in the combined print and supply chain business of subscription boxes in the USA. This is due to one of our large customers procuring shipping themselves instead of as before arranging it through Elanders. However, if the subscription box business is excluded, organic net sales increased by more than ten percent.

There has also been a decline in demand for photobooks, calendars and other similar products during the period. General anxiety in Europe concerning the war in Ukraine and higher costs of living as well as the fact that traveling is not yet up to speed are believed to be the source of this.

The business area's result and profitability were affected negatively by the above factors along with higher material and electricity costs as well as material and component shortages. The component shortage led to disturbances

in production and supply chains at several of the business area's customers in Automotive and Industrial during the period. This then caused uneven capacity utilization for both customers and subcontractors, for example Elanders.

The initiatives within online print continue, and during the period an agreement has been signed with a new customer with estimated annual sales of approximately MSEK 100.

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.

	First six months		Second quarter		Last 12	Full year
	2022	2021	2022	2021	months	2021
Net sales, MSEK	1,280	1,316	643	622	2,570	2,606
EBITDA, MSEK	120	131	58	60	296	308
EBITA, MSEK 1)	46	67	21	27	150	171
EBITA-margin, %	3.6	5.1	3.3	4.4	5.8	6.5
Average number of employees	1,334	1,180	1,337	1,185	1,314	1,237

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

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 have some problems with their supply chain.

There is still a great deal of uncertainty about how long the war will last and the extent of it. It is thus difficult to predict the exact impact in the coming year. Increased sanctions and scope of the war 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 revaluation 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.

INVESTMENTS AND DEPRECIATION

First six months

Net investments for the period amounted to MSEK 82 (82), whereof purchase price regarding acquisitions of operations amounted to MSEK 0 (46). Depreciation, amortization and write-downs amounted to MSEK 531 (424).

Second quarter

Net investments for the quarter amounted to MSEK 43 (20) and depreciation, amortization and write-downs amounted to MSEK 266 (211).

FINANCIAL POSITION, CASH FLOW AND FINANCING

First six months

Operating cash flow for the period increased to MSEK 487 (367), whereof purchase price regarding acquisitions of operations amounted to MSEK 0 (–46).

Net debt increased with MSEK 1,055 to MSEK 6,304 compared to MSEK 5,249 at the beginning of the year. Changes in exchange rates and lease liabilities contributed to the increase with MSEK 406 and MSEK 398 respectively. Net debt also include debts related to put and call options measured at fair value. The increase in net debt during the quarter includes changes in fair value for these options of approximately MSEK 105, mostly related to the positive development in Bergen Logistics.

Leverage, i.e. net debt/EBITDA for a rolling 12- month period, is now at 3.7. If effects from IFRS 16 and acquisition costs are excluded and if the ratio is adjusted for proforma result for acquisitions, net debt/EBITDA ratio is 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 result in acquisitions and excluding acquisition costs. This financial covenant was with a good margin met as of 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.

Second quarter

Operating cash flow for the period amounted to MSEK 187 (260), whereof purchase price regarding acquisitions of operations amounted to MSEK 0 (0).

PERSONNEL

First six months

The average number of employees during the period was 7,177 (6,097), whereof 164 (150) in Sweden. At the end of the period the Group had 7,273 (6,107) employees, whereof 173 (149) in Sweden.

Second quarter

The average number of employees during the quarter was 7,258 (6,118) whereof 169 (150) in Sweden.

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 13 (10).

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.

External circumstances 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.

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

EVENTS AFTER THE BALANCE SHEET DATE

On July 1, 2022, Elanders entered an agreement to acquire all the shares in Bonds Worldwide Holdings Limited with its subsidiaries Bonds Worldwide Express Limited and Bonds Technical Couriers Limited (together "Bonds"). Bonds is a leading actor in the UK within special transportation and installation of advanced technical equipment. The company is privately owned and had net sales of some GBP 5 million in 2021 with good profitability. Bonds will be consolidated into the Elanders Group as of July 1, 2022. The purchase price is approximately GBP 5 million on cash- and debt-free basis, if IFRS 16 effects are excluded from the debt. The major part of the purchase price will be paid in the third quarter.

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.

REVIEW BY COMPANY AUDITORS

The company auditors have not reviewed this report.

FINANCIAL CALENDAR

Third quarter 2022	17 October 2022
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

CONFERENCE CALL

In connection to the issuing of the Quarterly Report for the second quarter 2022 Elanders will hold a Press and Analysts conference call on 12 july 2022, at 09:30 CET, hosted by President and CEO Magnus Nilsson and CFO Andréas Wikner.

To join this event, please use the below Click to Join link 5–10 minutes prior to start time, where you will be asked to enter your phone number and registration details. Our Event Conferencing system will call you on the phone number you provide and place you into the event. Please note that the Click To Join link will be active 15 minutes prior to the event.

CLICK TO JOIN

Use the Click to Join option above for the easiest way to join your conference or use one of the access numbers below:

Sweden: +46 (0)8 5664 2754 Germany: +49 (0)69 22222 5195 UK: +44 (0)330 165 3641 USA: +1 646-828-8082

Participant Passcode: 767304

Agenda

09:20 Conference number is opened 09:30 Presentation of quarterly results 09:50 Q&A 10:30 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

DECLARATION BY THE BOARD

The Board of Directors of Elanders AB (publ) hereby declares that this half-year report gives a true and fair view of the parent company's and Group's operations, financial position and result and describes significant risks and uncertainties that the parent company and companies within the Group are facing.

Mölndal, 12 July 2022

Dan Frohm Chairman Carl Bennet Vice chairman Eva Elmstedt Erik Gabrielson Cecilia Lager Anne Lenerius Johan Stern Caroline Sundewall Martin Afzelius Martin Schubach Magnus Nilsson President and CEO

CONSOLIDATED FINANCIAL STATEMENTS

INCOME STATEMENTS

		First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales	6,897	5,504	3,525	2,769	13,126	11,733
Cost of products and services sold	–5,879	–4,738	–3,000	–2,386	–11,229	–10,088
Gross profit	1,018	766	525	383	1,897	1,645
Sales and administrative expenses	–694	–524	–356	–259	–1,289	–1,119
Other operating income	110	29	83	12	163	83
Other operating expenses	–28	–11	–11	–5	–45	–28
Operating result	406	260	241	132	726	580
Net financial items	–71	–47	–36	–22	–122	–98
Result after financial items	335	213	206	110	604	482
Income tax	–104	–59	–63	–24	–196	–151
Result for the period	231	154	143	86	408	331
Result for the period attributable to:
– parent company shareholders	224	152	138	84	394	322
– non-controlling interests	8	3	5	2	14	9
Earnings per share, SEK 1) 2)	6.32	4.29	3.91	2.38	11.15	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

		First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Result for the period	231	154	143	86	408	331
Items that will not be reclassified to the income statement
Remeasurements after tax	–2	–	–1	–	4	6
Items that will be reclassified to the income statement
Translation differences after tax	277	75	217	–29	380	178
Hedging of net investment abroad after tax	–56	–4	–45	2	–59	–8
Other comprehensive income	219	71	171	–27	325	177
Total comprehensive income for the period	450	226	314	59	733	508
Total comprehensive income attributable to:
– parent company shareholders	442	223	309	57	718	499
– non-controlling interests	8	3	5	1	14	9

STATEMENTS OF CASH FLOW

		First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Result after financial items	335	213	206	110	604	482
Adjustments for items not included in cash flow	472	396	204	196	924	848
Paid tax	–77	–57	–38	–31	–149	–128
Changes in working capital	–309	–207	–216	–49	–240	–139
Cash flow from operating activities	420	345	156	226	1,138	1,063
Net investments in intangible and tangible assets	–81	–38	–43	–19	–171	–128
Acquired and divested operations	–	–46	–	–1	–1,221	–1,267
Change in long-term receivables	–1	2	0	0	–2	0
Cash flow from investing activities	–82	–82	–43	–20	–1,394	–1,394
Amortization of borrowing debts	–61	–223	71	–17	–1,913	–2,075
Amortization of lease liabilities	–374	–319	–191	–159	–702	–648
New loans	–	–	–	–	3,089	3,089
Other changes in long- and short-term borrowing	25	–2	20	–4	–173	–200
Dividend to shareholders	–127	–110	–127	–110	–130	–112
Cash flow from financing activities	–537	–654	–227	–290	170	54
Cash flow for the period	–199	–391	–115	–83	–85	–277
Liquid funds at the beginning of the period	898	1,101	828	834	743	1,101
Translation difference	65	32	50	–9	106	74
Liquid funds at the end of the period	764	743	764	743	764	898
Net debt at the beginning of the period	5,249	2,854	5,377	3,099	3,071	2,854
Translation difference	406	12	324	–36	462	69
Acquired and divested operations	–	31	–	–	971	1,002
Changes with cash effect	–66	–93	47	–69	651	624
Changes with no cash effect	715	266	556	77	1,150	700
Net debt at the end of the period	6,304	3,071	6,304	3,071	6,304	5,249
Operating cash flow	487	367	187	260	15	–105

STATEMENTS OF FINANCIAL POSITION

		30 June
MSEK	2022	2021	31 Dec. 2021
ASSETS
Intangible assets	4,767	3,163	4,517
Tangible assets	3,964	2,264	3,372
Other fixed assets	430	291	352
Total fixed assets	9,160	5,719	8,241
Inventories	570	331	400
Accounts receivable	2,015	1,595	1,822
Other current assets	639	422	438
Cash and cash equivalents	764	743	898
Total current assets	3,988	3,091	3,559
Total assets	13,148	8,810	11,800
EQUITY AND LIABILITIES
EQUITY	3,522	3,024	3,304
LIABILITIES
Non-interest-bearing long-term liabilities	276	185	253
Interest-bearing long-term liabilities	6,191	3,225	5,326
Total long-term liabilities	6,467	3,411	5,579
Non-interest-bearing short-term liabilities	2,283	1,787	2,096
Interest-bearing short-term liabilities	877	588	821
Total short-term liabilities	3,160	2,376	2,917
Total equity and liabilities	13,148	8,810	11,800

STATEMENTS OF CHANGES IN EQUITY

	First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Opening balance	3,304	2,908	3,440	3,075	3,024	2,908
Dividend to parent company shareholders	–127	–110	–127	–110	–127	–110
Dividend to non-controlling interests	–	–	–	–	–3	–3
Change in fair value of put option to acquire non-controlling interest	–105	–	–105	–	–105	–
Total comprehensive income for the period	450	226	314	59	733	508
Closing balance	3,522	3,024	3,522	3,024	3,522	3,304
Equity attributable to
– parent company shareholders	3,486	3,000	3,486	3,000	3,486	3,276
– non-controlling interests	36	24	36	24	36	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

	First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Supply Chain Solutions	5,683	4,228	2,914	2,168	10,659	9,204
Print & Packaging Solutions	1,280	1,316	643	622	2,570	2,606
Group functions	23	19	11	10	42	39
Eliminations	–88	–60	–43	–31	–145	–116
Group net sales	6,897	5,504	3,525	2,769	13,126	11,733

OPERATING RESULT PER SEGMENT

		First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Supply Chain Solutions	389	214	233	115	634	459
Print & Packaging Solutions	40	64	18	26	138	162
Group functions	–23	–18	–10	–9	–47	–41
Group operating result	406	260	241	132	726	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.

FIRST SIX MONTHS

	Supply Chain Solutions		Print & Packaging Solutions		Total
MSEK	2022	2021	2022	2021	2022	2021
Total net sales	5,683	4,228	1,280	1,316	6,962	5,544
Less: net sales to group companies	–39	–13	–27	–28	–66	–40
Net sales	5,644	4,215	1,253	1,288	6,897	5,504

	Supply Chain Solutions		Print & Packaging Solutions			Total
MSEK	2022	2021	2022	2021	2022	2021
Customer segments
Automotive	1,161	976	211	167	1,373	1,143
Electronics	1,686	1,488	42	50	1,728	1,538
Fashion & Lifestyle	1,694	764	280	534	1,974	1,297
Health Care & Life Science	260	208	42	30	302	239
Industrial	617	516	265	234	883	750
Other	226	263	411	273	637	536
Net sales	5,644	4,215	1,253	1,288	6,897	5,504
Main revenue streams
Sourcing and procurement services	1,002	961	–	–	1,002	961
Freight and transportation services	1,934	1,344	114	392	2,048	1,737
Other contract logistics services	2,473	1,745	227	182	2,699	1,927
Other work/services	235	164	912	715	1,147	879
Net sales	5,644	4,215	1,253	1,288	6,897	5,504
Geographic markets
Europe	3,340	2,781	871	671	4,211	3,451
Asia	1,179	1,065	19	17	1,198	1,082
North and South America	1,117	365	360	599	1,477	964
Other	8	4	2	2	10	6
Net sales	5,644	4,215	1,253	1,288	6,897	5,504

DISAGGREGATION OF REVENUE (CONT.)

SECOND QUARTER

	Supply Chain Solutions		Print & Packaging Solutions		Total
MSEK	2022	2021	2022	2021	2022	2021
Total net sales	2,914	2,168	643	622	3,557	2,790
Less: net sales to group companies	–19	–7	–13	–14	–32	–21
Net sales	2,895	2,161	630	608	3,525	2,769

	Supply Chain Solutions		Print & Packaging Solutions		Total
MSEK	2022	2021	2022	2021	2022	2021
Customer segments
Automotive	577	477	119	82	696	559
Electronics	877	786	17	23	893	809
Fashion & Lifestyle	871	385	139	239	1,010	624
Health Care & Life Science	131	122	22	16	153	138
Industrial	324	251	130	115	453	367
Other	116	140	204	133	320	273
Net sales	2,895	2,161	630	608	3,525	2,769
Main revenue streams
Sourcing and procurement services	523	513	–	–	523	513
Freight and transportation services	995	669	57	167	1,052	836
Other contract logistics services	1,260	881	111	89	1,371	970
Other work/services	116	97	462	353	578	450
Net sales	2,895	2,161	630	608	3,525	2,769
Geographic markets
Europe	1,683	1,395	434	331	2,117	1,726
Asia	612	573	10	8	622	581
North and South America	596	190	186	268	781	458
Other	4	3	1	1	5	4
Net sales	2,895	2,161	630	608	3,525	2,769

DISAGGREGATION OF REVENUE (CONT.)

LAST 12 MONTHS AND FULL YEAR 2021

	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
Total net sales	10,659	9,204	2,570	2,606	13,229	11,810
Less: net sales to group companies	–54	–27	–49	–50	–103	–77
Net sales	10,605	9,177	2,521	2,556	13,126	11,733

Total
Full year 2021
2,220
3,398
2,843
502
1,530
1,240
11,733
2,139
3,504
4,016
2,075
11,733
7,305
2,419
1,996
14
11,733

NET SALES PER QUARTER

	2022			2021
MSEK	Second quarter	First quarter	Fourth quarter	Third quarter	Second quarter	First quarter
Customer segments
Automotive	696	677	570	507	559	584
Electronics	893	835	943	917	809	729
Fashion & Lifestyle	1,010	964	916	629	624	673
Health Care & Life Science	153	149	136	127	138	101
Industrial	453	429	402	379	367	383
Other	320	317	397	306	273	264
Net sales	3,525	3,371	3,364	2,865	2,769	2,734

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 June 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 June 30, 2022, the fair value of these financial liabilities amounts to SEK 510 million compared to SEK 362 million at the beginning of the year. 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"). Schätzl is specialized as a subcontractor for different actors in online print, which is one of the few areas in the graphic industry showing organic growth. Elanders is already a well-established subcontractor in this area and together with Schätzl Elanders will be one of the leading actors in Europe.

Schätzl had net sales of around MEUR 15 in the last twelve month period with good profitability. The purchase price for the shares was MEUR 8 on a debt-free basis. The seller may also receive an additional sum which will be paid in 2024 if the company continues to develop positively.

Schätzl is part of business area Print & Packaging Solutions and was consolidated into the Group as of July 2021. Since the acquisition the company has contributed to Group net sales by just over MSEK 100 and to the net result by MSEK 11.

One-off costs in connection with the acquisition were around MSEK 1 and consisted of consultancy fees. The acquisition was financed within Elanders' existing credit framework.

The purchase price allocation is preliminary.

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 per November 2021. Since the acquisition the company has contributed to Group net sales by just over MSEK 200 and to the net result by MSEK 8, excluding acquisition costs but including financing costs.

One-off costs in connection with the acquisition were around MSEK 15 and consisted primarily of consultancy fees. Bergen Logistics is expected to contribute positively to earnings per share during 2022. 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 a step in augmenting value-adding services to customers such as those in Electronics and Healthcare & Life Science. Eijgenhuijsen is privately owned and had net sales of MEUR 10 in 2020.

Eijgenhuijsen is part of business area Supply Chain Solutions and was consolidated into the Group per December 2021. The acquisition did not have any material effect on net sales or the result during the period.

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.

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) SCHÄTZL AND EIJGENHUIJSEN

MSEK	Recorded values in acquired operations	Adjustments to fair value	Recorded value in the Group
Intangible assets	4	29	33
Other assets 1)	146	1	148
Current assets excluding cash and cash equivalents	40	0	40
Cash and cash equivalents	58	0	58
Other non-interest bearing liabilites	–46	–7	–52
Interest bearing liabilities 2)	–104	0	–104
Identifiable net assets	99	23	123
Goodwill			85
Total	99	23	208
Less:
Unpaid purchase price			–31
Amortization of external loans in connection with acquisition			21
Cash and cash equivalents in acquisitions			–58
Negative effect on cash and cash equivalents for the Group			141

1) Whereof right-of-use assets MSEK 73.

2) Whereof lease liabilities MSEK 73.

QUARTERLY DATA

QUARTERLY DATA

	2022 Q2	2022 Q1	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3	2020 Q2
Net sales, MSEK	3,525	3,371	3,364	2,865	2,769	2,734	2,886	2,778	2,814
EBITDA, MSEK	507	430	456	328	343	341	466	390	278
EBITDA excl. IFRS 16, MSEK	295	220	266	156	176	173	295	222	105
EBITA, MSEK	264	187	228	126	145	142	256	190	72
EBITA adjusted, MSEK	224	187	244	127	145	142	256	190	72
EBITA-margin, %	7.5	5.5	6.8	4.4	5.2	5.2	8.9	6.8	2.6
EBITA-margin adjusted, %	6.3	5.5	7.3	4.4	5.2	5.2	8.9	6.8	2.6
Operating result, MSEK	241	165	209	111	132	129	243	177	59
Operating margin, %	6.8	4.9	6.2	3.9	4.8	4.7	8.4	6.4	2.1
Result after financial items, MSEK	206	129	181	88	110	104	211	147	29
Result after tax, MSEK	143	88	120	57	86	69	156	101	19
Earnings per share, SEK 1)	3.91	2.42	3.28	1.54	2.38	1.91	4.33	2.83	0.52
Operating cash flow, MSEK	187	300	–680	208	260	107	693	455	279
Cash flow per share, SEK 2)	4.42	7.47	13.50	6.81	6.40	3.36	20.04	11.07	9.21
Depreciation and write-downs, MSEK	266	265	247	218	211	212	223	213	219
Net investments, MSEK	43	39	1,222	91	20	62	65	23	13
Goodwill, MSEK	3,505	3,347	3,305	2,584	2,500	2,523	2,413	2,479	2,479
Total assets, MSEK	13,148	12,131	11,800	9,303	8,810	9,052	8,639	9,283	9,140
Equity, MSEK	3,522	3,440	3,304	3,122	3,024	3,075	2,908	2,903	2,843
Equity per share, SEK	98.60	96.44	92.67	87.55	84.85	86.33	81.65	81.56	79.89
Net debt, MSEK	6,304	5,377	5,249	3,253	3,071	3,099	2,854	3,567	3,412
Net debt excl. IFRS 16, MSEK	3,005	2,532	2,539	1,336	1,298	1,261	1,123	1,630	1,831
Capital employed, MSEK	9,826	8,817	8,553	6,375	6,095	6,174	5,762	6,470	6,254
Return on total assets, % 3)	8.7	5.8	8.4	5.1	6.0	6.3	12.2	7.6	1.6
Return on equity, % 3)	16.0	10.2	14.6	7.2	11.1	9.1	21.2	14.0	2.6
Return on capital employed, % 3)	10.4	7.6	11.2	7.1	8.6	8.6	15.9	11.1	3.6
Debt/equity ratio	1.8	1.6	1.6	1.0	1.0	1.0	1.0	1.2	1.2
Equity ratio, %	26.8	28.4	28.0	33.6	34.3	34.0	33.6	31.3	31.1
Interest coverage ratio 4)	6.0	6.0	6.3	6.8	7.1	6.0	5.0	2.4	2.1
Number of employees at the end of the period	7,273	7,182	7,019	6,234	6,107	6,072	6,058	6,084	6,234

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 – FIRST SIX MONTHS

	2022	2021	2020	2019	2018
Net sales, MSEK	6,897	5,504	5,386	5,525	5,035
EBITDA, MSEK	937	684	574	683	302
EBITA, MSEK	450	287	153	255	199
EBITA adjusted, MSEK	410	287	153	235	199
Result after tax, MSEK	231	154	35	109	76
Earnings per share, SEK 1)	6.32	4.29	0.96	3.02	2.10
Cash flow from operating activities per share, SEK	11.88	9.76	17.68	16.59	1.65
Equity per share, SEK	98.60	84.85	79.89	78.20	72.02
Return on equity, % 2)	13.2	10.2	2.4	7.9	6.0
Return on capital employed, % 2)	8.7	9.4	3.8	6.9	6.4
EBITA-margin, %	6.5	5.2	2.8	4.6	4.0
EBITA-margin adjusted, %	6.0	5.2	2.8	4.2	4.0
Operating margin, %	5.9	4.7	2.3	4.1	3.3
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 – SECOND QUARTER

	2022	2021	2020	2019	2018
Net sales, MSEK	3,525	2,769	2,814	2,719	2,613
EBITDA, MSEK	507	343	278	349	168
EBITA, MSEK	264	145	72	132	116
EBITA adjusted, MSEK	224	145	72	122	116
Result after tax, MSEK	143	86	19	59	42
Earnings per share, SEK 1)	3.91	2.38	0.52	1.62	1.15
Cash flow from operating activities per share, SEK	4.42	6.40	9.21	6.54	2.85
Equity per share, SEK	98.60	84.85	79.89	78.20	72.02
Return on equity, % 2)	16.0	11.1	2.6	8.2	6.4
Return on capital employed, % 2)	10.4	8.6	3.6	6.5	7.3
EBITA-margin, %	7.5	5.2	2.6	4.8	4.4
EBITA-margin adjusted, %	6.3	5.2	2.6	4.5	4.4
Operating margin, %	6.8	4.8	2.1	4.3	3.8
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	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.

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FINANCIAL OVERVIEW

MSEK		First six months	Second quarter		Last 12 months	Full year 2021
		2021	2022	2021
Operating result	406	260	241	132	726	580
Depreciation, amortization and write-downs	531	424	266	211	995	888
EBITDA	937	684	507	343	1,721	1,468
Operating result	406	260	241	132	726	580
Amortization of assets identified in conjunction with acquisitions	44	27	22	14	79	61
EBITA	450	287	264	145	804	641
Adjustments for one-off items	–40	–	–40	–	–23	17
EBITA adjusted	410	287	224	145	781	658
EBITA-margin, %	6.5	5.2	7.5	5.2	6.1	5.5
EBITA-margin adjusted, %	6.0	5.2	6.3	5.2	6.0	5.6
Cash flow from operating activities	420	345	156	226	1,138	1,063
Net financial items	71	47	36	22	122	98
Paid tax	77	57	38	31	149	128
Net investments	–82	–82	–43	–20	–1,394	–1,394
Operating cash flow	487	367	187	260	15	–105
Interest-bearing long-term liabilities	6,191	3,225	6,191	3,225	6,191	5,326
Interest-bearing short-term liabilities	877	588	877	588	877	821
Cash and cash equivalents	–764	–743	–764	–743	–764	–898
Net debt	6,304	3,071	6,304	3,071	6,304	5,249
Net debt/EBITDA ratio, times	3.4	2.2	3.1	2.2	3.7	3.6
Operating result excl. IFRS 16	372	241	224	121	666	536
Depreciation, amortization and write-downs excl. IFRS 16	144	107	71	55	271	234
EBITDA excl. IFRS 16	515	348	295	176	937	770
Interest-bearing long-term liabilities excl. IFRS 16	3,604	2,022	3,604	2,022	3,604	3,279
Interest-bearing short-term liabilities excl. IFRS 16	164	19	164	19	164	158
Cash and cash equivalents	–764	–743	–764	–743	–764	–898
Net debt excl. IFRS 16	3,005	1,298	3,005	1,298	3,005	2,539
Net debt/EBITDA ratio excl. IFRS 16, times	2.9	1.9	2.5	1.8	3.2	3.3

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – QUARTERLY DATA

MSEK	2022 Q2	2022 Q1	2021 Q4	2021 Q3	2021 Q2	2021 Q1	2020 Q4	2020 Q3	2020 Q2
Operating result	241	165	209	111	132	129	243	177	59
Depreciation, amortization and write-downs	266	265	247	218	211	212	223	213	219
EBITDA	507	430	456	328	343	341	466	390	278
Operating result excl. IFRS 16	224	148	196	99	121	120	232	167	50
Depreciation, amortization and write-downs excl. IFRS 16	71	72	70	57	55	53	63	54	55
EBITDA excl. IFRS 16	295	220	266	156	176	173	295	222	105
Operating result	241	165	209	111	132	129	243	177	59
Amortization of assets identified in conjunction with acquisitions	22	22	19	15	14	13	13	13	13
EBITA	264	187	228	126	145	142	256	190	72
Cash flow from operating activities	156	264	477	241	226	119	709	391	326
Net financial items	36	36	28	23	22	25	32	30	30
Paid tax	38	39	37	35	31	25	17	56	–64
Net investments	–43	–39	–1,222	–91	–20	–62	–65	–23	–13
Operating cash flow	187	300	–680	208	260	107	693	455	279
Average total assets	12,640	11,965	10,551	9,057	8,931	8,846	8,961	9,211	9,436
Average cash and cash equivalents	–796	–863	–842	–764	–789	–968	–997	–901	–891
Average non-interest-bearing liabilities	–2,522	–2,417	–2,246	–2,058	–2,008	–1,910	–1,848	–1,948	–1,977
Average capital employed	9,321	8,685	7,464	6,235	6,134	5,968	6,116	6,362	6,568
Annualized operating result	965	659	837	443	526	515	971	708	236
Return on capital employed, %	10.4	7,6	11.2	7.1	8.6	8,6	15.9	11.1	3.6
Interest-bearing long-term liabilities	6,191	5,371	5,326	3,417	3,225	1,437	3,268	3,629	3,335
Interest-bearing short-term liabilities	877	835	821	622	588	2,497	687	831	985
Cash and cash equivalents	–764	–828	–898	–786	–743	–834	–1,101	–893	–909
Net debt	6,304	5,377	5,249	3,253	3 071	3,099	2,854	3,567	3,412

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FIRST SIX MONTHS

MSEK	2022	2021	2020	2019	2018
Operating result	406	260	126	228	167
Amortization of assets identified in conjunction with acquisitions	44	27	26	27	32
EBITA	450	287	153	255	199
Average total assets	12,640	8,834	9,359	9,103	7,507
Average cash and cash equivalents	–796	–1,339	–812	–725	–597
Average non-interest-bearing liabilities	–2,522	–1,931	–1,922	–1,783	–1,675
Average capital employed	9,321	5,564	6,625	6,595	5,235
Annualized operating result	812	521	253	455	335
Return on capital employed, %	8.7	9.4	3.8	6.9	6.4

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – SECOND QUARTER

MSEK	2022	2021	2020	2019	2018
Operating result	241	132	59	118	100
Amortization of assets identified in conjunction with acquisitions	22	14	13	14	16
EBITA	264	145	72	132	116
Average total assets	12,640	8,931	9,436	9,786	7,767
Average cash and cash equivalents	–796	–789	–891	–726	–574
Average non-interest-bearing liabilities	–2,522	–2,008	–1,977	–1,790	–1,763
Average capital employed	9,321	6,134	6,568	7,270	5,430
Annualized operating result	965	526	236	472	399
Return on capital employed, %	10.4	8.6	3.6	6.5	7.3

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

	First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Net sales	23	19	11	10	42	39
Operating expenses	–48	–37	–24	–19	–94	–83
Operating result	–26	–18	–12	–9	–52	–44
Net financial items	–21	129	–27	115	164	314
Result after financial items	–47	111	–39	106	112	270
Income tax	12	–5	10	–2	11	–6
Result for the period	–35	106	–29	104	123	264

STATEMENTS OF COMPREHENSIVE INCOME

MSEK	First six months		Second quarter
	2022	2021	2022	2021	Last 12 months	Full year 2021
Result for the period	–35	106	–29	104	123	264
Other comprehensive income	–	–	–	–	–	–
Total comprehensive income for the period	–35	106	–29	104	123	264

BALANCE SHEETS

	30 June		31 Dec. 2021
MSEK	2022	2021
ASSETS
Fixed assets	5,458	3,897	5,278
Current assets	276	223	439
Total assets	5,734	4,120	5,717
EQUITY, PROVISIONS AND LIABILITIES
Equity	1,854	1,859	2,017
Provisions	2	5	5
Long-term liabilities	3,033	1,894	2,854
Short-term liabilities	845	363	842
Total equity, provisions and liabilities	5,734	4,120	5,717

STATEMENTS OF CHANGES IN EQUITY

	First six months		Second quarter
MSEK	2022	2021	2022	2021	Last 12 months	Full year 2021
Opening balance	2,017	1,862	2,010	1,864	1,859	1,862
Dividend	–127	–110	–127	–110	–127	–110
Total comprehensive income for the period	–35	106	–29	104	123	264
Closing balance	1,854	1,859	1,854	1,859	1,854	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 – JUNE 2022