Bravida Holding

Earnings Release • Feb 15, 2022

October–December 2021

• Net sales increased by 11 percent to SEK 6,218 million (5,614)
• The order backlog rose by 20 percent to SEK 16,519 million (13,791)
• EBITA rose by 31 percent to SEK 625 million (478)
• The EBITA margin was 10.1% (8.5)
• Profit after tax was SEK 468 million (351)
• Cash flow from operating activities was SEK 1,115 million (873)
• Net debt amounted to SEK -1,003 million (-1,124)
• Eight acquisitions were made during the quarter, adding annual sales of approximately SEK 360 million
• Basic and diluted earnings per share were SEK 2.32 (1.73) and SEK 2.31 (1.73)
• Repayment of pension funds from the insurance company AFA affected EBITA by SEK 96 million in Sweden

January–December 2021

• Net sales increased by 3 percent to SEK 21,876 million (21,147)
• EBITA increased by 12 percent to SEK 1,512 million (1,351)

INTERIM REPORT OCTOBER–DECEMBER

2021

• The EBITA margin was 6.9% (6.4)
• Profit after tax was SEK 1,138 million (997)
• Cash flow from operating activities was SEK 1,437 million (2,171)
• 20 acquisitions were made during the year, adding annual sales of approximately SEK 1,052 million
• Basic and diluted earnings per share were SEK 5.66 (4.94) and SEK 5.64 (4.93)
• The Board of Directors proposes a dividend of SEK 3.00 (2.50) per share for 2021

Financial overview

	Oct–Dec	Oct–Dec	Jan–Dec	Jan–Dec
Amounts in SEK million	2021	2020	2021	2020
Net sales	6,218	5,614	21,876	21,147
Operating profit (EBIT)	626	477	1,512	1,348
Operating margin (EBIT), %	10.1	8.5	6.9	6.4
EBITA	625	478	1,512	1,351
EBITA margin, %	10.1	8.5	6.9	6.4
Profit/loss after tax	468	351	1,138	997
Cash flow from operating activities	1,115	873	1,437	2,171
Cash conversion, %, 12 m*	83	138	83	138
Net debt/EBITDA, 12 m	0.5	0.6	0.5	0.6
Order intake	7,251	5,140	24,237	20,242
Order backlog	16,519	13,791	16,519	13,791

* A change in the cash conversion calculation was made during quarter 4, see the definitions on page 20.

We bring buildings to life

Organic growth and a strong order intake during the quarter

Organic growth was 6 percent and the order intake increased by 41 percent during the fourth quarter. All countries contributed to the overall growth, which comes from both service and installation activities. The EBITA margin improved compared to last year. With a record order backlog and increased demand for services, Bravida remains well positioned for the coming quarters.

Net sales and EBITA

I am very pleased with our good performance during the quarter. Our previous assessment was that organic growth would return by the end of the year and it is pleasing to see that this is indeed the case. Organic growth for the fourth quarter was 6 percent and was positive in all countries except Norway, where we see a distinct improvement in growth during the quarter. Total growth was also good, at 11 percent for the quarter. The strong development is explained by higher production in the installation business and increased demand in the service business in all countries.

The order backlog increased by SEK 1,251 million during the quarter. This was mainly due to a very strong increase in the order intake in Norway, where we signed several large hospital projects. Several of the projects are collaborative projects where we have been involved in the development at an early stage.

EBITA for the quarter was SEK 625 million and the margin was 10.1 percent. Earnings includes a repayment of pension funds of SEK 96 million from AFA. Excluding the repayment, the EBITA margin was unchanged at 8.5 percent compared to the previous year, this despite continued investments in digitalisation of the business. EBITA margin improved in Sweden, Norway and Finland.

Dividend proposal and record low debt

The operating cash flow increased in the quarter compared to last year, mainly due to more activity in the installation business. Debt amounted to a record low 0.5 times EBITDA.

The Board proposes raising the dividend by 20 percent to SEK 3 per share for 2021, which corresponds to 53 percent of earnings per share. I am very pleased that we can increase the dividend during a pandemic year, which is proof of our strong balance sheet and a stable earnings trend.

Acquisitions

Our pursuit of acquisitions has intensified over the past six months, as we start to move away from the challenges caused by the pandemic, which made it difficult to meet potential companies. We made 20 acquisitions in 2021, with total annual sales of approximately SEK 1,052 million, and in 2022 we have so far completed six acquisitions with annual sales of approximately SEK 197 million. Looking to the future, we see good opportunities to further increase the pace of acquisitions as we have a strong pipeline of potential companies and a stable price level for the bolt-ons acquisitions we make.

"Improved cash flow and high organic growth during the quarter."

Sustainability

In order to reduce our climate footprint and improve what we can offer employees, Bravida Sweden took the decision during the quarter to offer only electric cars as company cars. Bravida has a total of approximately 1,200 company cars in Sweden. We are very pleased to now be able to give both existing and new employees the opportunity to drive completely fossil free.

Outlook

There is a clear recovery in both the service and installation businesses, and we witnessed a gradual improvement in the market in 2021. In a shorter perspective, we are taking into account that the pandemic is still causing some uncertainty. We had a higher than normal sickness absence rate in late 2021 and this trend continued in early 2022. This will have a shortterm impact on our own production.

As we previously announced, raw material prices are rising sharply and there is a risk of material shortages in some areas. Bravida is following these developments closely and we have good systems for handling such eventualities. So far the impact has been minimal. In addition, we will increase our work with direct import to counteract price increases.

Our assessment is that high energy prices and our customers' sustainability requirements regarding their properties will drive demand for energy-efficient solutions and energy optimisation in the future. This is a demand that we are well equipped to meet. Our investments in areas such as building automation and technical facility management further strengthen our range of services and create more opportunities for profitable growth.

I am optimistic about the coming quarters, with our strong order backlog and good demand for services likely to result in a high level of business activity.

Mattias Johansson Stockholm, February 2022

Consolidated earnings overview

Net sales

October–December

Net sales increased by 11 percent to SEK 6,218 million (5,614). Organic growth was 6 percent, acquisitions boosted net sales by 4 percent and currency effects had a 1 percent impact. Net sales increased in all countries.

Compared with the fourth quarter of 2020, net service sales increased by 15 percent and net installation sales increased by 7 percent. The service business accounted for 47 percent (45) of total net sales.

The order intake rose by 41 percent to SEK 7,251 million (5,140). The order intake rose in Sweden, Norway and Denmark. The order backlog amounted to SEK 16,519 million (13,791), an increase of 20 percent. The order backlog, including acquisitions, rose by SEK 1,251 million during the quarter. The order backlog only includes installation projects.

January–December

Net sales increased by 3 percent to SEK 21,876 million (21,147). Organic growth was 0 percent, acquisitions boosted net sales by 3 percent and currency effects had a marginal impact. Net sales rose in Sweden, Denmark and Finland.

Compared with the 2020 financial year, net service sales increased by 9 percent and net installation sales decreased by 1 percent. The service business accounted for 47 percent (45) of total net sales.

The order intake amounted to SEK 24,237 million (20,242), an increase of 20 percent. The order intake rose in Sweden, Norway and Denmark. The order backlog, including acquisitions, rose by SEK 2,728 million during the year.

Earnings

October–December

Operating profit was SEK 626 million (477). EBITA increased by 31 percent to SEK 625 million (478), resulting in an EBITA margin of 10.1 percent (8.5). The Swedish business operations received a one-off sum of SEK 96 million from the insurance company AFA, which was a repayment of pension funds. EBITA and the EBITA margin excluding the AFA repayment amounted to SEK 529 million (478) and 8.5 percent (8.5), respectively. The EBITA margin increased in Sweden, Norway and Finland, but decreased in Denmark. Group-wide income was SEK 2 million (15). Net financial income/expense amounted to SEK -19 million (-28). Profit after financial items was SEK 608 million (449). Profit after tax was SEK 468 million (351). Basic and diluted earnings per share increased by 34 percent to SEK 2.32 (1.73) and SEK 2.31 (1.73).

January–December

Operating profit was SEK 1,512 million (1,348). EBITA increased by 12 percent to SEK 1,512 million (1,351), resulting in an EBITA margin of 6.9 percent (6.4). Excluding the AFA repayment, EBITA was SEK 1,416 million (1,351) and the EBITA margin was 6.5 percent (6.4). The EBITA margin increased in all countries. Group-wide income was SEK -7 million (29). Net financial income/expense amounted to SEK -56 million (-74). Profit after financial items was SEK 1,456 million (1,274). Profit after tax was SEK 1,138 million (997). Basic and diluted earnings per share increased by 15 percent to SEK 5.66 (4.94) and SEK 5.64 (4.93).

Depreciation and amortisation

Depreciation in the quarter totalled SEK -110 million (-121), of which SEK -102 million (-112) related to depreciation of rightof-use assets. Depreciation in the period January–December totalled SEK -433 million (-434), of which SEK -398 million (-399) related to depreciation of right-of-use assets.

Tax

The tax expense for the quarter was SEK -139 million (-99). Profit before tax was SEK 608 million (449). Tax paid totalled SEK -46 million (-68).

The tax expense for January to December was SEK -318 million (-276). Profit before tax was SEK 1,456 million (1,274). Tax paid totalled SEK -210 million (-244).

Cash flow

October–December

Cash flow from operating activities before changes in working capital totalled SEK 778 million (585). Changes in working capital amounted to SEK 337 million (288). Current receivables

Net sales (SEK million)

Net sales by quarter

Net sales, rolling 12 months

Order intake by quarter Order intake, rolling 12 months

increased by SEK 277 million, current liabilities increased by SEK 612 million and inventory decreased by SEK 3 million. Cash flow from operating activities was SEK 1,115 million (873). The improvement in cash flow was due to more activity in the area of installation services.

Cash flow from investing activities was SEK -121 million (-62), of which acquisitions of subsidiaries and businesses totalled SEK -75 million (-51). Cash flow from financing activities was SEK -399 million (-172). Cash flow for the quarter was SEK 595 million (639). 12-month cash conversion was 83 percent (138).

January–December

Cash flow from operating activities before changes in working capital totalled SEK 1,796 million (1,599). Changes in working capital amounted to SEK -359 million (572). The change is due to higher trade receivables in Denmark and the settlement of deferred tax payments from 2020 relating to a temporary extension granted because of Covid-19. Current receivables increased by SEK 1,651 million, current liabilities rose by SEK 1,295 million and inventory increased by SEK 3 million. Cash flow from operating activities was SEK 1,437 million (2,171). Cash flow from investing activities was SEK -509 million (-316), of which acquisitions of subsidiaries and businesses totalled SEK -421 million (-281). Cash flow from financing activities, which refers to net repayment of borrowing, dividends and amortisation of lease liabilities, was SEK -1,151 million (-990). Cash flow for the period was SEK -223 million (866).

As mentioned before, we still have two large outstanding receivables in Denmark from two public-sector customers. These had a negative impact on cash flow during the year. The dispute over the receivables will be settled by arbitration. Our assessment is that this will take time but will not have a significant impact on earnings.

Financial position

Bravida's net debt on 31 December was SEK -1,003 million (-1,124), corresponding to a capital structure ratio (net debt/ EBITDA) of 0.5 (0.6). Consolidated cash and cash equivalents were SEK 1,594 million (1,748). Interest-bearing liabilities totalled SEK -2,597 million (-2,872), of which SEK -1,103 million (-950) were commercial paper and SEK -994 million (-1,022) were leases.

Total credit facilities were SEK 3,000 million (3,000), of which SEK 2,500 million (2,300) was unused on 31 December. At the end of the period, equity totalled SEK 6,832 million (5,876). The equity/assets ratio was 35.0 percent (34.5).

Acquisitions

Eight acquisitions were completed during the quarter, adding a total of around SEK 360 million in annual sales. A total of 20 acquisitions were completed during the period January– December, adding total annual sales of approximately SEK 1,052 million.

Employees

The average number of employees on 31 December was 11,864 (11,906).

Sustainability

Reported occupational injuries that led to at least one day's sickness absence decreased by 2 percent over the past 12 months to an LTIFR of 8.4 (8.6). The LTIFR was 8.6 in Sweden, 2.8 in Norway, 11.4 in Denmark and 18.6 in Finland. The LTIFR increased in Finland but decreased in the other countries. Our target is an LTIFR of <5.5, with an ultimate goal of zero workplace accidents.

The number of electric vehicles ordered so far this year is 279, which is 33 percent of the vehicles that have been ordered. The number of hybrid vehicles ordered is 166, which is 20 percent of the total vehicles ordered.

Parent company

Revenues for the quarter were SEK 59 million (52) and income after net financial items was SEK -30 million (11). Revenues for the January–December period were SEK 198 million (192) and earnings after net financial items were SEK -31 million (17).

Shareholder information

Bravida Holding AB's ordinary shares are listed on the Nasdaq Stockholm Large Cap list. On 31 December Bravida had 9,759 shareholders. The five largest shareholders were Mawer Investment Management, Swedbank Robur Funds, the Fourth Swedish National Pension Fund (AP4), Lannebo Funds and Handelsbanken Funds. Mawer Investment Management holds just over 11 percent of the votes.

Net sales and growth

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	6,218	5,614	21,876	21,147
Change	604	-52	729	743
Total growth, %	10.8	-0.9	3.4	3.6
Of which
Organic growth, %	6	-2	0	1
Acquisition-based growth, %	4	4	3	5
Currency effects, %	1	-3	0	-2

The listed share price on 31 December 2021 was SEK 127, which corresponds to a market capitalisation of SEK 25,822 million based on the number of ordinary shares. Total shareholder return over the past 12 months was just over 18 percent.

Share capital totals SEK 4 million, divided among 204,416,598 shares, of which 203,323,771 are ordinary shares and 1,092,827 are class C shares, which are held by Bravida Holding AB. Ordinary shares entitle holders to one vote and a dividend payment, while C shares entitle holders to one-tenth of a vote and no dividend.

Financial goals

• Sales growth: over 5 percent a year
• EBITA margin: over 7 percent
• Cash conversion: over 100 percent
• Net debt/EBITDA: under 2.5x
• Dividend: over 50 percent of net profit

Dividend

The Board of Directors proposes a dividend of SEK 3.00 (2.50) per share for 2021. The proposal represents an increase of 20 percent and corresponds to 53 percent (51) of net earnings per share. The proposed dividend totals SEK 610 million (507).

Other events during the period

There are no other material events to report.

Significant risks

Fluctuations in general market conditions, financial turmoil and political decisions are the main external factors that can have an impact on demand for residential and commercial new construction and industrial and public-sector investment. Demand for service and maintenance is less sensitive to economic fluctuations.

The impact of the Covid-19 pandemic on our business remains uncertain, with a risk to the health of employees, customers and suppliers and of a decline in the financial position.

Operating risks are related to day-to-day business operations such as tendering, price risks, capacity utilisation and revenue recognition. Management of these risks is part of Bravida's business process. Recognition over time is applied and is based on the extent of completion of each project and the expected date of completion. A well-developed process for the monitoring of projects is essential in limiting the risk of incorrect revenue recognition. Bravida continually monitors the financial status of each project to ensure that individual project calculations are not exceeded. The Group is also exposed to impairment loss risks in fixed-price contracts and various types of financial risk such as currency, interest rate and credit risk.

Transactions with related parties

No transactions with related parties outside the Group took place during the period.

Events since the end of the period

Six acquisitions have been made so far in 2022, with total annual sales of around SEK 197 million, see note 3.

EBITA (SEK million)

EBITA margin, %

Cash flow from operating activities (SEK million)

Cash flow from operating activities by quarter Cash flow from operating activities, rolling 12 months

Operations in Sweden

Market

The confidence indicator for the construction industry remains above the normal level. Independent market assessments for 2022 indicate a growing installation market and a stable service market. Good demand for installations in residential, industrial and logistics centre properties, and for energy-efficiency improvements in existing buildings.

Net sales and earnings

October–December

Net sales rose by 9 percent to SEK 3,355 million (3,066). The increase in net sales was attributable to both service and installation business. Organic growth was 5 percent.

EBITA rose by 44 percent to SEK 418 million (291). The EBITA margin rose to 12.5 percent (9.5). The business in Sweden received a one-off sum of SEK 96 million during the quarter, which was a repayment of pension funds from the insurance company AFA. EBITA excluding the AFA repayment increased by 11 percent to SEK 322 million (291), while the EBITA margin was 9.6 percent (9.5).

January–December

Net sales rose by 5 percent to SEK 11,894 million (11,313). The increase in net sales was attributable to both service and installation business. Organic growth was 1 percent.

EBITA rose by 19 percent to SEK 954 million (801). The EBITA margin increased to 8.0 percent (7.1). EBITA and the EBITA margin excluding the AFA repayment amounted to SEK 858 million (801) and 7.2 percent (7.1), respectively.

Order intake and order backlog October–December

The order intake rose by 19 percent to SEK 3,213 million (2,702). Order intake related to small and medium-sized installation projects and service assignments.

The order backlog at the end of the quarter was 10 percent higher than for the same period last year and amounted to SEK 9,228 million (8,400). The order backlog decreased by SEK 142 million during the quarter.

January–December

The order intake rose by 18 percent to SEK 12,615 million (10,677). The order backlog rose by SEK 828 million during the period.

Net sales (SEK million)

1912 2003 2006 2009 2012 2103 2106 2109 2112

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

Operations in Sweden

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	3,355	3,066	11,894	11,313
Total growth, %	9	3	5	6
Organic growth, %	5	0	1	2
Acquisition-based growth, %	4	3	4	4
EBITA	418	291	954	801
EBITA margin, %	12.5	9.5	8.0	7.1
Order intake	3,213	2,702	12,615	10,677
Order backlog	9,228	8,400	9,228	8,400
Average number of employees	5,672	5,831	5,672	5,831

Installation work in one of the world's tallest wooden buildings. The Sara Kulturhus building opened in Skellefteå in autumn 2021. Bravida has previously mentioned its task of carrying out all the installation work there, and the end result was very successful. The project involved around 40 Bravida employees and we met all the high demands regarding energy efficient installations. The building is a combined cultural centre and hotel made entirely of wood and certified to Miljöbyggnad Silver standard.

Operations in Norway

Market

Independent market assessments for 2022 indicate growing service and installation markets. The forecast for the construction market is an improvement, based on renovation works and large public investments. High energy prices are increasing the demand for technological solutions that reduce energy consumption.

Net sales and earnings

October–December

Net sales increased by 6 percent to SEK 1,188 million (1,121). Net sales increased for both the service and installation businesses during the quarter. Currency fluctuations had a positive 5 percent impact on net sales. Organic growth was negative, at -1 percent.

EBITA rose by 29 percent to SEK 92 million (72). The EBITA margin increased to 7.8 percent (6.4), as a result of improved earnings for installation activities.

January–December

Net sales decreased by 6 percent to SEK 4,066 million (4,304). Net sales decreased in the installation business and increased in the service business. Currency fluctuations had a positive

2 percent impact on net sales. Organic growth was negative, at -8 percent. EBITA rose by 3 percent to SEK 253 million (245). The EBITA margin increased to 6.2 percent (5.7).

Order intake and order backlog October–December

The order intake increased by 168 percent to SEK 2,390 million (891). The high order intake is explained by several contracts being signed for installations in new hospitals. A total of 6 hospital contracts have been signed, with a combined order value of approximately SEK 775 million.

The order backlog at the end of the quarter was 76 percent higher than for the same period last year and amounted to SEK 3,694 million (2,097). The order backlog rose by SEK 1,202 million during the quarter.

January–December

The order intake increased by 47 percent to SEK 5,663 million (3,848). The order backlog rose by SEK 1,597 million during the period.

Net sales (SEK million)

1912 2003 2006 2009 2012 2103 2106 2109 2112

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

Operations in Norway

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	1,188	1,121	4,066	4,304
Total growth, %	6	-15	-6	-12
Organic growth, %	-1	-7	-8	-4
Acquisition-based growth, %	0	2	0	1
Currency effects, %	5	-10	2	-9
EBITA	92	72	253	245
EBITA margin, %	7.8	6.4	6.2	5.7
Order intake	2,390	891	5,663	3,848
Order backlog	3,694	2,097	3,694	2,097
Average number of employees	2,931	2,997	2,931	2,997

Bravida signs a climate contract with the City of Oslo. In November, Bravida Norway's Region Oslo Service regional manager Dag Vidar Kvernbråten (left) signed a climate agreement with the City of Oslo with City Council for Environment and Transport Sirin Hellvin Stave (right) regarding membership in the 'Industry for Climate' network. The climate agreement involves actively contributing to the achievement of the Oslo climate goals and to reducing greenhouse gas emissions by 95% by 2030. The initiative was created because Oslo wants to create an arena for dialogue and cooperation between the business community and the municipality.

Operations in Denmark

Market

The confidence indicator for the construction industry remains above the normal level. Independent market assessments for 2022 indicate stable service and installation markets.

Net sales and earnings

October–December

Net sales increased by 11 percent to SEK 1,211 million (1,091). Net sales increased for both the service and installation businesses during the quarter.

Organic growth was 12 percent. Currency fluctuations had a -1 percent impact on net sales.

EBITA increased by 2 percent to SEK 70 million (68), while the EBITA margin decreased to 5.8 percent (6.3), due to slightly lower profitability for the installation business.

January–December

Net sales increased by 4 percent to SEK 4,381 million (4,217). The increase in net sales is attributable to the service business. Organic growth was 4 percent. Currency fluctuations had a -3 percent impact on net sales. EBITA increased by 5 percent to SEK 230 million (220), while the EBITA margin rose to 5.3 percent (5.2).

Order intake and order backlog October–December

The order intake rose by 11 percent to SEK 1,358 million (1,221). Order intake related to small and medium-sized installation projects and service assignments.

The order backlog at the end of the quarter was 13 percent higher than for the same period last year and amounted to SEK 2,773 million (2,451). The order backlog rose by SEK 152 million during the quarter.

January–December

The order intake rose by 10 percent to SEK 4,695 million (4,277). The order backlog rose by SEK 322 million during the period.

Net sales (SEK million)

1912 2003 2006 2009 2012 2103 2106 2109 2112

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter EBITA, rolling 12 months

Operations in Denmark

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	1,211	1,091	4,381	4,217
Total growth, %	11	3	4	12
Organic growth, %	12	-3	4	0
Acquisition-based growth, %	0	9	3	13
Currency effects, %	-1	-3	-3	-1
EBITA	70	68	230	220
EBITA margin, %	5.8	6.3	5.3	5.2
Order intake	1,358	1,221	4,695	4,277
Order backlog	2,773	2,451	2,773	2,451
Average number of employees	2,429	2,315	2,429	2,315

Energy optimisation in a laboratory environment. The National Centre for Micro-production and Nano-production, DTU Nanola b, has advanced facilities in a laboratory environment covering about 1,350 square metres, where the air is filtered more than 100 times an hour. Bravida has been assigned the task of replacing fan filter units and luminaires in the building. Working in laboratory environments requires a high level of cleanliness and also requires a number of special measures when performing the work. The assignment is scheduled for completion before summer 2022.

Operations in Finland

Market

Confidence indicators for the construction industry are above the normal level. Independent market assessments for 2022 indicate growing service and installation markets.

Net sales and earnings

October–December

Net sales increased by 27 percent to SEK 496 million (389). Net sales increased for both the service and installation businesses during the quarter. Organic growth was 9 percent. Currency fluctuations had a -1 impact on net sales.

EBITA rose by 35 percent to SEK 43 million (32). The EBITA margin increased to 8.6 percent (8.1), because of an improved margin for both the service and installation businesses.

January–December

Net sales increased by 17 percent to SEK 1,622 million (1,392). The increase in net sales was attributable to both service and installation business. Organic growth was 8 percent. Currency fluctuations had a -3 percent impact on net sales.

EBITA rose by 46 percent to SEK 82 million (56). The EBITA margin increased to 5.0 percent (4.0).

Order intake and order backlog October–December

The order intake decreased by 15 percent to SEK 323 million (379). Order intake related to small and medium-sized installation projects and service assignments.

The order backlog at the end of the quarter was 2 percent lower than for the same period last year and amounted to SEK 824 million (842). The order backlog rose by SEK 39 million during the quarter.

January–December

The order intake decreased by 11 percent to SEK 1,352 million (1,518). The lower order intake is explained by a large order being received last year. The order backlog decreased by SEK 19 million during the period.

Net sales (SEK million)

1912 2003 2006 2009 2012 2103 2106 2109 2112

Net sales by quarter

Net sales, rolling 12 months

EBITA (SEK million)

EBITA by quarter

EBITA, rolling 12 months

Operations in Finland

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	496	389	1,622	1,392
Total growth, %	27	21	17	18
Organic growth, %	9	18	8	13
Acquisition-based growth, %	19	6	12	6
Currency effects, %	-1	-3	-3	-1
EBITA	43	32	82	56
EBITA margin, %	8.6	8.1	5.0	4.0
Order intake	323	379	1,352	1,518
Order backlog	824	842	824	842
Average number of employees	704	666	704	666

Renovation of an art museum in Helsinki. When the Villa Gyllenberg art museum in Helsinki, which dates back to 1938, was renovated and had an extension added, Bravida was given the task of installing the heating and plumbing, electrical and automation systems. All the upgrades carried out in the building meet environmental requirements and have improved the energy efficiency of the historic building. The museum is expected to reopen in early 2022 and Bravida has also signed a service agreement for the maintenance of the museum's technical building systems.

Financial reporting

Consolidated income statement, summary

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	6,218	5,614	21,876	21,147
Production costs	-5,112	-4,671	-18,577	-18,093
Gross profit/loss	1,106	943	3,299	3,054
Selling and administrative expenses	-480	-466	-1,787	-1,706
Operating profit/loss	626	477	1,512	1,348
Net financial income/expense	-19	-28	-56	-74
Profit/loss before tax	608	449	1,456	1,274
Tax	-139	-99	-318	-276
Profit/loss for the period	468	351	1,138	997
Profit/loss for the period attributable to:
Owners of the parent company	471	351	1,148	1,002
Non-controlling interests	-3	0	-10	-5
Profit/loss for the period	468	351	1,138	997
Basic earnings per share, SEK	2.32	1.73	5.66	4.94
Diluted earnings per share, SEK	2.31	1.73	5.64	4.93

Consolidated statement of comprehensive income, summary

	Oct–Dec	Oct–Dec	Jan–Dec	Jan–Dec
Amounts in SEK million	2021	2020	2021	2020
Profit/loss for the period	468	351	1,138	997
Other comprehensive income
Items that have been or can be transferred to profit/loss for the year
Translation differences for the period from the translation of foreign operations	31	-44	98	-150
Items that cannot be transferred to profit/loss for the year
Revaluation of defined-benefit pensions	24	-50	158	10
Tax attributable to the revaluation of pensions	-4	11	-32	-2
Other comprehensive income for the period	51	-83	223	-142
Comprehensive income for the period	519	268	1,361	855
Comprehensive income for the period attributable to:
Owners of the parent company	522	268	1,371	860
Non-controlling interests	-3	0	-10	-5
Comprehensive income for the period	519	268	1,361	855

Consolidated balance sheet, summary

Amounts in SEK million	31/12/2021	31/12/2020
Goodwill	9,530	8,904
Right-of-use assets	972	1,002
Other non-current assets	250	179
Total non-current assets	10,752	10,084
Trade receivables	4,446	3,391
Contract assets	2,019	1,257
Other current assets	705	574
Cash and cash equivalents	1,594	1,748
Total current assets	8,764	6,969
Total assets	19,516	17,053
Equity attributable to owners of the parent company	6,816	5,855
Non-controlling interests	16	21
Total equity	6,832	5,876
Non-current liabilities	1,159	1,770
Lease liabilities	638	679
Total non-current liabilities	1,797	2,449
Lease liabilities	356	343
Trade payables	2,534	2,123
Contract liabilities	3,144	2,049
Other current liabilities	4,854	4,213
Total current liabilities	10,887	8,728
Total liabilities	12,684	11,177
Total equity and liabilities	19,516	17,053
Of which interest-bearing liabilities	2,597	2,872

Changes in equity

Amounts in SEK million	Jan–Dec 2020
Consolidated equity
Amount at start of period	5,876	5,596
Comprehensive income for the period	1,361	855
Non-controlling interests' put option	67	-136
Dividend	-507	-457
Long-term incentive programme	35	17
Amount at end of period	6,832	5,876

Consolidated cash flow statement, summary

	Oct–Dec	Oct–Dec	Jan–Dec	Jan–Dec
Amounts in SEK million	2021	2020	2021	2020
Cash flow from operating activities
Profit/loss before tax	608	449	1,456	1,274
Adjustments for non-cash items	217	205	550	569
Income taxes paid	-46	-68	-210	-244
Change in working capital	337	288	-359	572
Cash flow from operating activities	1,115	873	1,437	2,171
Investing activities
Acquisitions of subsidiaries and businesses	-75	-51	-421	-281
Other	-46	-11	-88	-34
Cash flow from investing activities	-121	-62	-509	-316
Financing activities
Net change in borrowing	-297	390	-247	-145
Repayment of lease liabilities	-102	-106	-397	-388
Dividend paid	–	-457	-507	-457
Cash flow from financing activities	-399	-172	-1,151	-990
Cash flow for the period	595	639	-223	866
Cash and cash equivalents at start of period	973	1,129	1,748	972
Translation difference on cash and cash equivalents	26	-20	69	-90
Cash and cash equivalents at end of period	1,594	1,748	1,594	1,748

Parent company income statement, summary

Amounts in SEK million	Oct–Dec 2021	Oct–Dec 2020	Jan–Dec 2021	Jan–Dec 2020
Net sales	59	52	198	192
Selling and administrative expenses	-86	-31	-215	-154
Operating profit/loss	-27	21	-17	38
Net financial income/expense	-4	-10	-14	-21
Profit/loss after net financial items	-30	11	-31	17
Net Group contributions	882	140	882	140
Appropriations	-152	-40	-152	-40
Profit/loss before tax	699	111	699	117
Tax	-146	-26	-146	-26
Profit/loss for the period	553	85	552	91

Parent company balance sheet, summary

Amounts in SEK million	31/12/2021	31/12/2020
Shares in subsidiaries	7,341	7,341
Non-current receivables	1	–
Deferred tax asset	0	0
Total non-current assets	7,342	7,341
Receivables from Group companies	1,587	1,225
Current receivables	33	45
Total current receivables	1,620	1,270
Cash and bank balances	1,380	1,626
Total current assets	3,001	2,897
Total assets	10,343	10,238
Restricted equity	4	4
Non-restricted equity	4,175	4,096
Equity	4,179	4,100
Untaxed reserves	672	520
Liabilities to credit institutions	–	500
Provisions	2	1
Total non-current liabilities	2	501
Short-term loans	1,603	1,350
Liabilities to Group companies	3,738	3,708
Current liabilities	148	60
Total current liabilities	5,489	5,118
Total equity and liabilities	10,343	10,238
Of which interest-bearing liabilities	1,603	1,850

Quarterly data

	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar
INCOME STATEMENT, SEK million	2021	2021	2021	2021	2020	2020	2020	2020
Net sales	6,218	4,854	5,570	5,233	5,614	4,750	5,382	5,401
Production costs	-5,112	-4,161	-4,784	-4,520	-4,671	-4,103	-4,632	-4,688
Gross profit/loss	1,106	694	786	713	943	647	750	713
Selling and administrative expenses	-480	-401	-459	-447	-466	-364	-433	-442
Operating profit/loss	626	293	327	266	477	283	317	271
Net financial income/expense	-19	-13	-15	-9	-28	-12	-13	-21
Profit/loss after financial items	608	280	312	256	449	271	303	250
Tax	-139	-59	-66	-54	-99	-58	-66	-54
Profit/loss for the period	468	221	246	202	351	213	238	196

BALANCE SHEET		31/12/2021 30/09/2021 30/06/2021		31/03/2021	31/12/2020	30/09/2020		30/06/2020 31/03/2020
Goodwill	9,530	9,291	9,223	9,081	8,904	8,957	8,908	8,807
Other non-current assets	1,222	1,175	1,182	1,183	1,180	1,045	1,110	1,182
Current assets	7,169	6,788	6,332	5,654	5,221	5,675	5,710	5,807
Cash and cash equivalents	1,594	973	1,302	1,367	1,748	1,129	1,103	1,131
Total assets	19,516	18,227	18,039	17,285	17,053	16,807	16,830	16,928
Equity	6,832	6,236	5,991	6,186	5,876	6,033	5,819	5,758
Borrowings	500	500	500	300	500	1,012	1,018	800
Non-current liabilities	1,797	1,836	1,841	1,950	1,949	1,717	1,760	1,717
Current liabilities	10,387	9,655	9,707	8,848	8,728	8,045	8,233	8,653
Total equity and liabilities	19,516	18,227	18,039	17,285	17,053	16,807	16,830	16,928

	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar
CASH FLOW	2021	2021	2021	2021	2020	2020	2020	2020
Cash flow from operating activities	1,115	-139	317	144	873	10	728	560
Cash flow from investing activities	-121	-98	-148	-142	-62	-27	-146	-81
Cash flow from financing activities	-399	-97	-207	-448	-172	43	-590	-270
Cash flow for the period	595	-335	-37	-446	639	26	-8	208

	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar	Oct–Dec	Jul–Sep	Apr–Jun	Jan–Mar
KEY RATIOS	2021	2021	2021	2021	2020	2020	2020	2020
Operating margin (EBIT), %	10.1	6.0	5.9	5.1	8.5	6.0	5.9	5.0
EBITA margin, %	10.1	6.1	5.9	5.1	8.5	6.0	5.9	5.0
Return on equity, %	17.4	16.7	16.6	16.6	16.7	16.0	16.2	15.9
Net debt	-1,003	-1,906	-1,600	-1,134	-1,124	-1,230	-1,185	-1,698
Net debt/EBITDA	0.5	1.1	0.9	0.6	0.6	0.7	0.7	1.0
Cash conversion*, %	83	80	90	114	138	146	149	118
Interest coverage, multiple	44.5	23.5	23.0	25.4	32.9	29.8	24.5	25.0
Equity/assets ratio, %	35.0	34.2	33.2	35.8	34.5	35.9	34.6	34.0
Order intake	7,251	5,212	5,973	5,801	5,140	4,024	5,346	5,732
Order backlog	16,519	15,269	14,908	14,397	13,791	14,274	14,952	14,985
Average number of employees	11,864	11,817	11,763	11,731	11,906	11,972	11,940	11,811
Administrative expenses as % of sales	7.7	8.3	8.2	8.5	8.3	7.7	8.1	8.2
Working capital as % of sales	-6.7	-4.4	-6.8	-6.8	-7.5	-6.7	-8.1	-6.5
Basic earnings per share, SEK	2.32	1.09	1.23	1.02	1.73	1.07	1.17	0.97
Diluted earnings per share, SEK	2.31	1.09	1.23	1.02	1.73	1.07	1.17	0.96
Equity per share, SEK	33.52	30.60	29.39	30.40	28.85	29.72	28.64	28.37
Cash flow from operating activities
per share, SEK	5.49	-0.68	1.56	0.71	4.30	0.05	3.59	2.76
Share price at balance sheet date, SEK	127.00	118.40	123.80	120.30	109.50	109.20	89.05	70.15

* A change in the cash conversion calculation was made during quarter 4, see definitions on page 20.

Reconciliation of key ratios, not defined under IFRS.

The company presents certain financial measures in this quarterly report that are not defined under IFRS. The company considers that these indicators provide valuable additional information for investors and the company's management as they allow relevant trends to be assessed. Bravida's definitions of these indicators may differ from other companies' definitions of the same terms. These financial measures should therefore be regarded as complementary rather than replacing the measures defined under IFRS. See page 20 for definitions of key performance indicators.

Reconciliation of key performance
measures, not defined under IFRS Amount in SEK million	Oct–Dec 2021	Jul–Sep 2021	Apr–Jun 2021	Jan–Mar 2021	Oct–Dec 2020	Jul–Sep 2020	Apr–Jun 2020	Jan–Mar 2020
Net debt
Interest-bearing liabilities	-2,597	-2,879	-2,902	-2,501	-2,872	-2,359	-2,288	-2,830
Cash and cash equivalents	1,594	973	1,302	1,367	1,748	1,129	1,103	1,131
Total net debt	-1,003	-1,906	-1,600	-1,134	-1,124	-1,230	-1,185	-1,698
EBITA
Operating profit, EBIT	626	293	327	266	477	283	317	271
Amortisation and impairment of non current intangible assets	-1	1	1	0	0	1	1	1
EBITA	625	294	327	266	478	284	317	272
EBITDA
Operating profit, EBIT	626	293	327	266	477	283	317	271
Depreciation and impairment	110	107	109	107	121	102	104	106
EBITDA	736	400	435	372	599	385	421	377
Working capital
Current assets	8,764	7,761	7,634	7,021	6,969	6,804	6,813	6,938
Cash and cash equivalents	-1,594	-973	-1,302	-1,367	-1,748	-1,129	-1,103	-1,131
Current liabilities	-10,887	-10,155	-9,707	-8,848	-8,728	-8,045	-8,233	-8,653
Lease, current liability	356	333	340	339	343	308	322	336
Short-term loans	1,603	1,900	1,400	1,200	1,350	465	320	1,020
Provisions	287	199	206	220	226	173	172	141
Total working capital	-1,471	-935	-1,429	-1,434	-1,587	-1,424	-1,709	-1,349
Interest coverage ratio
Profit/loss before tax	608	280	312	256	449	271	303	250
Interest expense	14	12	14	11	14	9	13	10
Total	622	293	326	267	463	281	316	260
Interest expense	14	12	14	11	14	9	13	10
Interest coverage, multiple	44.5	23.5	23.0	25.4	32.9	29.8	24.5	25.0
Cash conversion*
Cash flow from operating activities, 12 months	1,437	1,195	1,344	1,755	2,171	2,287	2,341	1,744
Income taxes paid	210	232	238	237	244	206	184	181
Net interest income	56	65	64	63	74	63	67	70
Investments in machinery and equipment	-88	-52	-43	-36	-34	-40	-30	-28
Adjusted cash flow from operating
activities, 12 months	1,615	1,440	1,603	2,019	2,455	2,516	2,562	1,967
EBITDA, 12 months	1,944	1,807	1,791	1,777	1,782	1,718	1,714	1,667
Cash conversion, %	83	80	90	114	138	146	149	118

* A change in the cash conversion calculation was made during quarter 4, see definitions on page 20.

Notes

NOTE 1. Accounting policies

This is a translation of the Swedish Interim Report of Bravida Holding AB. In the event of inconsistency between the English and the Swedish versions, the Swedish version shall prevail.

This interim report for the Group has been prepared in accordance with International Reporting Standards (IFRS) using IAS 34 Interim Reporting. The parent company applies Recommendation RFR 2 Accounting for Legal Entities and Chapter 9 of the Swedish Annual Accounts Act regarding interim reports.

The accounting policies applied are consistent with what is set out in the 2020 annual accounts.

The IASB has published supplements to standards effective from 1 January 2021 or later. Such supplements have not had any material impact on Bravida's financial statements.

All amounts in this interim report are stated in millions of Swedish kronor (SEK), unless specified otherwise, and rounding differences may therefore occur.

NOTE 2. Segment reporting and revenue distribution

Net sales by country

Amount in SEK million	Oct–Dec 2021	distri bution	Oct–Dec 2020	distri bution	Jan–Dec 2021	distri bution	Jan–Dec 2020	distri bution
Sweden	3,355	54%	3,066	55%	11,894	54%	11,313	53%
Norway	1,188	19%	1,121	20%	4,066	19%	4,304	20%
Denmark	1,211	19%	1,091	19%	4,381	20%	4,217	20%
Finland	496	8%	389	7%	1,622	7%	1,392	7%
Group-wide and eliminations	-32		-54		-88		-79
Total	6,218		5,614		21,876		21,147

EBITA, EBITA margin and profit/loss before tax

Amount in SEK million	Oct–Dec 2021	EBITA margin	Oct–Dec 2020	EBITA margin	Jan–Dec 2021	EBITA margin	Jan–Dec 2020	EBITA margin
Sweden	418	12.5%	291	9.5%	954	8.0%	801	7.1%
Norway	92	7.8%	72	6.4%	253	6.2%	245	5.7%
Denmark	70	5.8%	68	6.3%	230	5.3%	220	5.2%
Finland	43	8.6%	32	8.1%	82	5.0%	56	4.0%
Group-wide	2		15		-7		29
EBITA	625	10.1%	478	8.5%	1,512	6.9%	1,351	6.4%
Amortisation of intangible assets	1		0		0		-2
Net financial income/expense	-19		-28		-56		-74
Profit/loss before tax (EBT)	608		449		1,456		1,274

NOTE 2. Segment reporting and revenue distribution, cont.

Distribution of revenues		Oct–Dec 2021		Oct–Dec 2020
Revenue per category, SEK million	Service	Installation	Total	Service	Installation	Total
Sweden	1,578	1,776	3,355	1,422	1,645	3,066
Norway	662	527	1,188	607	514	1,121
Denmark	532	679	1,211	441	650	1,091
Finland	126	370	496	93	296	389
Eliminations	0	-32	-32	-43	-10	-54
Group	2,899	3,319	6,218	2,519	3,095	5,614

Distribution of revenues		Jan–Dec 2021		Jan–Dec 2020
Revenue per category, SEK million	Service	Installation	Total	Service	Installation	Total
Sweden	5,658	6,237	11,894	5,439	5,874	11,313
Norway	2,294	1,772	4,066	2,176	2,128	4,304
Denmark	1,871	2,510	4,381	1,557	2,660	4,217
Finland	457	1,164	1,622	329	1,063	1,392
Eliminations	-3	-84	-88	-49	-30	-79
Group	10,277	11,599	21,876	9,452	11,695	21,147

Average number of employees	Jan–Dec 2021	Jan–Dec 2020
Sweden	5,672	5,831
Norway	2,931	2,997
Denmark	2,429	2,315
Finland	704	666
Group-wide	127	98
Total	11,864	11,906

NOTE 3. Acquisition of operations

Bravida made the following acquisitions in the year:

					Percent		Estimated
Acquired unit	Country	Technical area	Type	Date	age of votes	Employees	annual sales, SEK million
Profire Sprinkler AB	Sweden	Sprinklers	Company	January	100%	35	70
J Beese VVS & Blik	Denmark	Heating and plumbing, ventilation	Assets and liabilities	February	–	12	14
Fiberkom ApS	Denmark	Electrical	Company	February	100%	8	8
SKM Service Oy	Finland	Heating & plumbing	Company	March	100%	20	133
Volt Elektro AS	Norway	Electrical	Company	April	100%	6	11
IEAB Installationsentreprenören AB	Sweden	HVAC	Company	May	100%	23	75
E3K Installation AB	Sweden	Automation, electrics, heating and plumbing, ventilation	Company	May	100%	100	165
Runevads VVS Teknik AB	Sweden	Heating and plumbing, ventilation	Company	June	100%	30	50
Sundins El i Norrköping AB	Sweden	Electrical	Company	June	100%	24	48
Dala Klimat	Sweden	HVAC	Assets and liabilities	July	–	4	10
Kyltemp i Sverige	Sweden	Cooling	Assets and liabilities	September	–	4	8
Parts of Assemblin Oy's automation business	Finland	Automation	Assets and liabilities	September	–	65	100
Peiter Olsen El A/S	Denmark	Electrical	Assets and liabilities	October	–	18	33
Reglerteknik i Norr	Sweden	Automation	Assets and liabilities	October	–	8	14
Norrstyr AB, company	Sweden	Automation	Company	October	100%	6	11
Sarjametalli Talotekniika Oy	Finland	HVAC	Company	November	100%	20	110
Plato AS	Norway	HVAC	Company	November	100%	21	35
Sörens EL AB	Sweden	Electrical	Company	December	100%	50	60
Sörens Kraft och Montage AB	Sweden	Power	Company	December	100%	19	40
Öbergs Vent Teknik AB	Sweden	HVAC	Company	December	100%	22	57

Effects of acquisitions in 2021

Bravida normally uses an acquisition structure with a fixed purchase price and contingent consideration. The contingent consideration is initially valued at the likely final amount, which for the year's acquisitions is SEK 134 million. The contingent considerations are due for payment within three to five years. The acquisitions are reported in aggregate form in the table below as individually they are not of sufficient size to justify separate recognition of each acquisition.

The acquisition analyses of acquired companies in 2021 are preliminary.

Assets and liabilities included in acquisition	Fair value recognised in the Group, SEK million
Intangible assets	3
Property, plant and equipment	5
Trade receivables*	123
Income accrued but not invoiced	12
Other current assets	58
Cash and cash equivalents	119
Non-current liabilities	-7
Trade payables	-69
Income invoiced but not accrued	-20
Other current liabilities	-75
Net identifiable assets and liabilities	148
Consolidated goodwill	553
Consideration	701
Cash and cash equivalents, acquired	119
Net effect on cash and cash equivalents	582
Cash consideration paid	497
Consideration recognised as a liability**	204
Consideration	701

^*There are no material impairments of trade receivables.

**Of the total consideration recognised as a liability, SEK 134 million consists of contingent consideration.

Acquisitions after the end of the reporting period

Bravida has completed six acquisitions since the end of the period. In January, Z-Elektro AS with 20 employees and sales of approximately SEK 18 million was acquired in Norway, 60% of the shares in Viva Energi A/S with 13 employees and sales of approximately SEK 48 million, and Rotovent's operations with 2 employees and sales of approximately SEK 18 million were acquired in Denmark, and Skoglunds El & Tele AB with 30 employees and sales of approximately SEK 45 million was acquired in Sweden. In February, Langehus Rör AS with 14 employees and sales of approximately SEK 19 million and AB Elektro AS with 32 employees and sales of approximately SEK 69 million were acquired in Norway.

NOTE 4. Seasonal variations

Bravida's business is affected by seasonal variations in the construction industry and employees' annual holiday. Bravida usually has a lower level of activity in the third quarter as it is the main holiday period. The fourth quarter normally has the highest earnings because many projects are completed during this period.

NOTE 5. Financial instruments, fair value

The fair value of the Group's financial assets and liabilities is not materially different from carrying amounts. No items other than the contingent consideration are recognised at fair value in the balance sheet.

Stockholm, 15 February 2022 Bravida Holding AB

Mattias Johansson

CEO and Group President

Information

This information is information that Bravida Holding is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 7.30 am CET on 15 February 2022. This interim report has not been reviewed by Bravida's auditors.

For further information, please contact:

Peter Norström, Investor Relations Email: peter.norstrom@bravida.se Telephone: +46 8 695 20 07

and competitive conditions.

Financial reporting dates

Annual Report 2021	Calendar week 12, 2022
Interim Report January–March 2022	28 April 2022
Annual General Meeting	5 May 2022
Interim Report April–June 2022	15 July 2022
Interim Report July–September 2022	26 October 2022

This report contains information and opinions on future prospects for Bravida's business activities. The information is based on Group management's current expectations and estimates. Actual future outcomes may vary considerably from the forward-looking statements in this report, partly because of changes in economic, market

Financial definitions

Average number of employees

Calculated as the average number of employees during the year, taking account of the percentage of fulltime employment.

Return on equity

12-month rolling net profit/loss as a percentage of average equity.

EBITA*

Operating profit excluding amortisation and impairment of non-current intangible assets. EBITA is the key ratio and performance indicator that is used for internal operational monitoring. EBITA provides an overall view of profit generated by operating activities.

EBITA margin*

EBITA as a percentage of net sales.

EBITDA*

Earnings before interest, taxes, depreciation, and amortisation. EBITDA is a measure that the Group regards as relevant for investors who want to understand earnings generation before investments in non-current assets.

Effective tax rate

Recognised tax expense as a percentage of profit/loss before tax.

Equity per share, SEK

Equity attributable to equity holders of the parent company divided by the number of ordinary shares outstanding at the end of the period.

Net financial income/expense

Total exchange differences on borrowing and cash and cash equivalents in foreign currency, other financial revenue and other finance costs.

Capital structure (Net debt/EBITDA)

Net debt in relation to EBITDA, based on a rolling 12-month calculation. A healthy capital structure provides a solid basis for continued business operations. The capital structure should enable a high degree of financial flexibility and provide scope for acquisitions.

Cash flow from operating

activities per share Cash flow from operating activities for the period, divided by the number of shares at the end of the period.

Cash conversion*

Cash conversion, operations, 12 months. Cash flow from operating activities adjusted for tax payments, net financial income/expense and investments in machinery and equipment in relation to EBITDA.

This key ratio measures the percentage of profit that is converted into cash flow. The purpose is to analyse what percentage of earnings can be converted into cash and cash equivalents and, in the longer term, the opportunity for investments, acquisitions and dividends, with the exception of interest-related cash flows.

A change was made in the cash generation calculation during quarter 4 2021, so previous periods have been recalculated.

Net sales

Net sales are recognised in accordance with the principle of recognition over time, rather than using the previous percentage-of-completion method. These revenues are recognised in proportion to the degree of completion of projects.

Net debt*

Interest-bearing liabilities (including lease liabilities, excluding pension liabilities), less cash and cash equivalents. This key figure is a measure to show the Group's total interest-bearing debt.

Organic growth

The change in sales adjusted for currency effects, as well as acquisitions and disposals compared with the same period of the previous year. Sales from acquisitions and divestments are eliminated for a period of 12 months from the date of acquisition or divestment.

Operating cash flow*

Operating profit/loss adjusted for non-cash items, investments in machinery and equipment and changes in working capital.

Order intake

The value of new projects and contracts received, and changes in existing projects and contracts over the period in question. Includes both installation and service business.

Order backlog

The value of remaining, not yet accrued project revenues from orders on hand at the end of the period. Order backlog only includes installation projects, not service operations.

Diluted earnings per share

Profit/loss for the period attributable to shareholders of the parent company divided by the average number of outstanding ordinary shares after dilution.

Basic earnings per share

Profit/loss for the period attributable to owners of the parent company divided by the average number of outstanding ordinary shares.

Interest coverage ratio*

Profit/loss after financial items plus interest expense, divided by interest expense. This key ratio is a measure of how much earnings may fall by without interest payments being jeopardised or how much interest on borrowing may increase without operating profit turning negative.

Working capital*

Total current assets, excluding cash and cash equivalents, minus current liabilities excluding current provisions and interest-bearing short-term borrowing, and current lease liabilities. This measure shows how much working capital is tied up in the business and may be set in relation to sales to understand how efficiently tied-up working capital is being used.

Operating margin

Operating profit/loss as a percentage of net sales.

Operating profit/EBIT

Earnings net financial income/ expense and tax.

Equity/assets ratio

Equity including non-controlling interests as a percentage of total assets.

*See page 15 for reconciliation of performance measures.

Operational definitions

Installation/contracting

The installation and refurbishment of technical systems in properties, facilities and infrastructure.

Service

Operation and maintenance, as well as minor refurbishment of installations in buildings and facilities.

Technology area electrical

Power supply, lighting, heating, control, regulation and surveillance systems. Telecom and other low-voltage installations. Fire and intruder alarm products and systems, access control systems, CCTV and integrated security systems.

HVAC (heating, ventilation and air conditioning)

Comfort ventilation and comfort cooling through air treatment, air conditioning and climate control. Commercial cooling in freezer and cold rooms. Process ventilation, control systems. Energy audits and energy efficiency work through heat recovery, heat pumps, etc.

Technology area heating & plumbing

Water, wastewater, heating, sanitation, cooling and sprinkler systems. District heating and cooling. Industrial piping with expertise in all types of pipe welding. Energy saving through integrated energy systems.

Other

Refers to other technical areas such as power, security, cooling, solar panels, energy optimisation, sprinklers, building automation and technical facility management.

Other definitions

LTIFR

(Lost Time Injury Frequency Rate) Occupational injuries that lead to at least one day of sickness absence per million working hours.

This is Bravida

Our mission

We offer technical end-to-end solutions over the life of a property, from consulting and design to installation and service. We are a large company with a local presence across the Nordics. We meet customers on site and take long-term responsibility for our work. Our employees are our most important asset. With shared values, working methods and tools, together we create sustainable and profitable business for us and our customers.

Our vision

Bravida helps customers develop the full potential of their properties. Through service and installation, we bring buildings to life, and are leading the way to a sustainable and resilient society.

Target

We manage our business according to a number of key goals that reflect our aims regarding sustainable growth, stability and leadership in the sector.

Bravida helps customers with the service and installation of technical functions in properties and industrial facilities. Our aim is for each service and installation project to make a property better and more energy efficient.

The Bravida Way

Bravida is a large company with a local presence throughout the Nordics. We operate as ONE company – drawing on the same culture, work methods and strategies. Together we provide the market's best customer experience.

➀ We have a local presence, but we are ONE company

We approach and interact with our customers on local markets. Through Bravida's shared culture, work methods and strategy, each branch creates the best customer offer on the market – and a profitable business.

➁ Shared culture

Together, we are Bravida. Our entire company shares the same corporate culture, values and leadership.

➂ Shared working methods and tools

Bravida develops group-wide working methods and tools that all branches use to lead and enhance their business.

➃ Group-wide strategy

Our managers' most important task is to implement Bravida's strategy. Each branch is proactive in creating the best customer offering, the best team, efficient operations and a sustainable business.

Our strategies

Our vision is our ultimate objective, and our strategies take us there. We want to be the best in the Nordic region, the first choice for customers and the most attractive employer in the industry. To achieve this, we work actively to implement our strategies every day.

⊕ Best customer offering

Bravida has the best customer offering on the market. Our customers choose us because we create comprehensive solutions that make complex matters simple. We listen to our customers and proactively suggest solutions for the entire life cycle of the building. We facilitate the making of sustainable choices and create sustainable solutions. We provide customers with feedback after completing the assignment, and always ask if we can help with anything else. And above all – we keep our promises, take responsibility for our work and care about our customers.

⊕ The best team

Bravida has the best team in the industry.

What unites us is our passion to achieve constant improvement. That is why the best managers and employees choose to work for us. We promote gender equality and diversity so that we can become a stronger company. We have a passion for service and are experts in project management and delivering assignments. We work as a team, we help each other and we enjoy working together. And there are also lots of opportunities to grow and develop within the company.

⊕ Efficient delivery

At Bravida, we are professionals who do the job properly. Every employee works to create a great customer experience – every single day. We work efficiently, are cost-conscious and make sure to keep our workplaces in order. We always use our shared working methods and make purchases in the right way. We also plan thoroughly, monitor our productivity and maintain good control of every aspect of our assignments.

⊕ Sustainable business

We take responsibility for our business operations and have a proactive approach to long-term sustainability. Our vision is to eliminate occupational injuries entirely, and every branch works systematically to create a safe, pleasant working environment. We endeavour to achieve sustainable use of resources and a small climate footprint. We set high standards for both our suppliers and ourselves on business ethics, legal requirements and human rights.

⊕ Profitable growth – margin rather than volume

Margin over volume. Bravida constantly endeavours to improve profitability and achieve the full potential of each branch. We do this by ensuring we provide the best customer offering, the best team, efficient delivery of assignments and a sustainable business. We only take on assignments and projects with a good margin. We are cost conscious and use resources efficiently. We always use Bravida's group-wide resources and systems, and aim to achieve low fixed costs. Licence to grow. When a branch is profitable and has firm foundations in place, we focus on growth. We grow organically by developing our offering and by increasing our emphasis on sales and recruitment. We also grow through acquisitions. Our profitable branches and regions are always on the lookout for good local businesses, and we acquire companies that we would like to be part of our own business. Bravida also makes strategic acquisitions to establish itself on new markets or in new technical areas.

Bravida's objective is to be the largest or second-largest player in those places where we choose to operate.

We bring buildings to life

Head office

Bravida Holding AB 126 81 Stockholm Sweden Street address: Mikrofonvägen 28 Telephone: +46 8 695 20 00 www.bravida.com

Sweden

Bravida Sverige AB 126 81 Stockholm Sweden Street address: Mikrofonvägen 28 Telephone: +46 (0)8 695 20 00 www.bravida.com

Norway

Bravida Norge AS Postboks 313 Økern 0511 Oslo Norway Street address: Østre Aker vei 90 Telephone: +47 2404 80 00 www.bravida.no

Denmark

Bravida Danmark A/S Park Allé 373 2605 Brøndby Denmark Telephone: +45 4322 1100 www.bravida.dk

Finland

Bravida Finland Oy Valimotie 21 00380 Helsinki Finland Telephone: +358 10 238 8000 www.bravida.fi