Wästbygg Gruppen

Quarterly Report • Nov 9, 2021

INTERIM REPORT WÄSTBYGG GRUPPEN AB (PUBL), 1 JANUARY – 30 SEPTEMBER 2021

INTERIM REPORT

Wästbygg Gruppen AB (publ) January – September 2021

Robot system at the e-commerce company Nelly's warehouse in Borås. Self-developed project, 38,000 sqm.

Establishing operations in northern Sweden

The Wästbygg Group is expanding. In September, we signed an agreement to acquire Rekab Entreprenad with offices in Umeå, Sundsvall, Örnsköldsvik, Skellefteå and Luleå. As our 175 new colleagues join Wästbygg, we continue to deliver strong results. Based on the segment reporting, our operating profit amounted to SEK 74 million for the third quarter and SEK 207 million for the first nine months of the year. Looking at the rolling 12-month period, we had an operating profit of SEK 285 million.

Jörgen Andersson, CEO Wästbygg Gruppen

January – September 2021

GROUP IN SUMMARY

1 JULY – 30 SEPTEMBER 2021

• Revenue SEK 767 million (720)
• Operating profit SEK 58 million (56)
• Profit after tax SEK 56 million (58)
• Earnings per share SEK 1.74 (2.50)
• Cash flow from operating activities SEK -191 million (9)

1 JANUARY – 30 SEPTEMBER 2021

• Revenue SEK 2,718 million (2,696)
• Operating profit SEK 224 million (158)
• Profit after tax SEK 228 million (152)
• Earnings per share SEK 7.06 (6.62)
• Cash flow from operating activities SEK -126 million (-78)
• Interest-bearing net cash (+) / net debt (-) SEK 428 million (-209)
• Equity ratio 52% (32)

SUMMARY ACCORDING TO SEGMENT REPORT1

1 JULY – 30 SEPTEMBER 2021

• Revenue SEK 822 million (773)
• Operating profit SEK 74 million (67)
• Profit after tax SEK 75 million (68)
• Earnings per share SEK 2.31 (2.95)
• Cash flow from operating activities SEK -141 million (47)
• New orders SEK 703 million (900)

1 JANUARY – 30 SEPTEMBER 2021

• Revenue SEK 2,547 million (2,798)
• Operating profit SEK 207 million (177)
• Profit after tax SEK 216 million (171)
• Earnings per share SEK 6.68 (7.43)
• Cash flow from operating activities SEK 77 million (1)
• Interest-bearing net cash (+) / net debt (-) SEK 856 million (6)
• Equity ratio 56% (40)
• New orders SEK 2,943 million (1,966)
• Order backlog 30 September SEK 3,634 million (3,203)

SIGNIFICANT EVENTS IN THE THIRD QUARTER

• A contract was signed with Fastighets AB Trianon regarding sales of Kv Trädgårn in Svedala, a self-developed project with 53 rental apartments. The transaction takes the form of a forward commitment. The agreed property value is SEK 112 million, and state investment aid of SEK 27 million will also be paid.
• A contract was signed with Niam for the acquisition of building rights in Täby pertaining to two tenant-owner associations with 89 apartments. The agreed property value is approximately SEK 310 million, and Wästbygg assumed the building rights on 16 August.
• A contract was signed with Lansa Fastigheter regarding sales of self-developed residential project Journalen 1 in Sege Park, Malmö through a forward funding arrangement. Journalen 1 comprises 177 rental apartments and the agreed property value is approximately SEK 400 million. The deal is subject to a decision on state investment aid, as well as approval of building permit and title deeds.
• On 24 September the Wästbygg Group concluded an agreement to acquire all shares in Rekab Entreprenad AB, a company with 175 employees, from its holding company Trekcyd AB. The purchase price totalled SEK 230 million. See Note 8 on page 24.
• The Wästbygg Group's COO Mikael Hillsten has resigned after 11 years in various roles, and will leave the group later this year. He has stepped down from the group management team.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• The acquisition of Rekab Entreprenad AB was carried out on 28 October after being approved by the Swedish Competition Authority on 7 October, and the financing solution was decided on at an extraordinary general meeting of the Wästbygg Group on 21 October.
• A contract was signed for the acquisition of a logistics and industrial site of roughly 266,000 sqm just north of Gardermoen Airport in Norway. The purchase price is approximately NOK 233 million. The acquisition will be out in three phases, which will be paid for with closing dates in 2022, 2023 and 2025. The acquisition is conditional upon the seller completing the preparatory work on the land to meet the requirements of the local development plan; in addition, it must be possible for the required electricity supply to the site to be delivered within the agreed cost framework.
• A contract was signed with Logistikpartner for the development and construction of a 20,000 sqm logistics facility in Ulricehamn. A twelve-year lease was signed with Logistikpartner with a base year annual rent of SEK 9.7 million.

¹As of the interim report for the period January–June 2020, the Group reports revenues and results for project development of owner-occupied flats upon completion. In addition revenue recognition for these projects is reported over time in the segment report, as this is how the board and group management controls and monitors operations. See Note 2 on page 23 for further information.

Financial overview and key ratios*

SEK million unless other otherwise specified	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan–Dec 2020	Jan–Dec 2019	Jan–Dec 2018**	Jan–Dec 2017**
Financial key ratios
Revenue	767	720	2,718	2,696	3,642	3,620	3,889	3,543	2,822
Operating profit	58	56	224	158	289	223	220	147	91
Operating margin, %	7,6	7,8	8,2	5,9	7,9	6,2	5,7	4,1	3,2
Profit/loss after tax	56	58	228	152	311	234	215	142	86
Balance sheet	3,297	2,033	3,297	2,033	3,297	3,170	2,144	1,697	1,471
Equity/assets ratio, %	52	32	52	32	52	50	27	25	24
Return on equity, %	18	31	19	32	26	22	43	37	30
Operating capital	1,102	514	1,102	514	1,102	***1,010	270	-17	-29
Interest-bearing net cash (+) / net debt (-)	428	-209	428	-209	428	***252	-7	173	114
Cash flow from operating activities	-191	9	-126	-78	-286	-237	-63	141	134
Equity related key ratios
Earnings per share , SEK****	1.74	2.50	7.06	6.62	9.71	9.39	9.40	6.16	3.73
Equity per share, SEK	52.96	28.06	52.96	28.06	52.96	49.17	24.81	18,19	15.50
Number of shares at the end of the period (thousands)	32,340	22,950	32,340	22,950	32,340	32,340	22,950	22,950	22,950
Average number of shares (thousands)	32,340	22,950	32,340	22,950	31,947	24,913	22,950	22,950	22,950
Segment reporting
Financial key ratios
Revenue	822	773	2,547	2,798	3,550	3,801	3,905	3,652	2,838
Operating profit	74	67	207	177	285	254	192	171	105
Operating margin, %	9,0	8,7	8,1	6,3	8,0	6,7	4,9	4,7	3,7
Profit/loss after tax	75	68	216	171	314	268	187	163	100
Balance sheet	3,136	1,727	3,136	1,727	3,136	2,872	1,893	1,599	1,454
Equity/assets ratio, %	56	40	56	40	56	57	31	29	27
Return on equity, %	18	35	18	35	26	24	35	38	33
Operating capital	947	361	947	361	947	***800	177	-110	-43
Interest-bearing net cash (+) / net debt (-)	856	6	856	6	856	***877	129	308	151
Cash flow from operating activities	-141	47	77	1	-19	-95	-73	240	179
Equity related key ratios
Earnings per share , SEK****	2.31	2.95	6.68	7.43	9.80	10.75	8.15	7.09	4.37
Equity per share, SEK	54.33	29.87	54.33	29.87	54.33	50.92	25.78	20.27	16.66
Number of shares at the end of the period (thousands)	32,340	22,950	32,340	22,950	32,340	32,340	22,950	22,950	22,950
Average number of shares (thousands)	32,340	22,950	32,340	22,950	31,947	24,913	22,950	22,950	22,950

Operational key ratios

New orders	703	900	2,943	1,966	4,209	3,232	3,850	3,077	3,604
Order backlog	3,634	3,203	3,634	3,203	3,634	3,201	3,752	3,634	4 037
No of employees at end of period	333	315	333	315	333	311	305	288	261

For key ratio definitions, see page 26.

* The key ratios for the Group are shown above, both in accordance with IFRS and the segment accounting applied for internal control and monitoring, see Note 2 on page 23 for further information.

** As of 2019, IFRS 16 Leasing is applied. The years up to and including 2018 have not been recalculated, as the change has little effect on earnings.

*** As of Q4 2020, the KPIs Working capital and Interest-bearing net cash/net debt have been recalculated due to a reclassification of Other liabilities, see accounting principles on page 22.

**** The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

A word from the CEO

Establishing operations in northern Sweden

The Wästbygg Group is expanding. In September, we signed an agreement to acquire Rekab Entreprenad with offices in Umeå, Sundsvall, Örnsköldsvik, Skellefteå and Luleå. Since 2012, when we began expanding strongly outside our original home arena in western Sweden, we have pursued the principle of establishing offices in the markets where we aim to grow. After Stockholm/ Mälardalen and Skåne, we have taken a strategic decision to include northern Sweden in our expansion plans. This is a very exciting region where high growth is predicted going forward. The acquisition of Rekab, an established, well-known local actor, will strengthen the Wästbygg Group, and we bid a warm welcome the 175 new employees.

As our new colleagues join Wästbygg, we continue to deliver strong results. Based on the segment reporting, our operating profit amounted to SEK 74 million for the third quarter and SEK 207 million for the first nine months of the year. Looking at the rolling 12-month period, we had an operating profit of SEK 285 million.

In terms of volumes, we are noticing a break with the trend. Q3 was the first quarter of this year in which revenues were higher than the corresponding quarter of the previous year. The order intake of SEK 4.2 billion that we have had since 1 October 2020 has now started to show up strongly in our figures, as the new projects increasingly enter full production.

OUR BUSINESS AREAS

The Residential business area is booming. We had 1,200 apartments in production at the end of the quarter, and we are also preparing to commence sales and construction of self-developed projects in Gothenburg, Malmö and Stockholm. Demand for our self-developed tenant-ownership projects remains high, and we are pleased to note that our rental apartment projects are attracting interest from investors.

In Commercial, there has been an order intake of SEK 1 billion so far this year. Persistence pays off, and our construction sales managers have succeeded in securing many interesting projects for Wästbygg following the challenges caused by COVID-19 throughout 2020.

The community service properties in our project portfolio will commence construction within the next year or few years. Parallel to this, we are actively applying for land allocations and evaluating potential property acquisitions. Moreover, we maintain continuous dialogue with private actors in the care, school and preschool sectors. Eva Thulin was recently employed as Property Manager in the group company Inwita, to build up and drive the company's business. She has long experience from the real estate companies Vasakronan and Balder in areas including rental and administration of commercial property.

As regards the Logistics and Industry business area, we are sometimes asked what we will do when the Northvolt project ends in a few months. The short answer is that we will continue exactly as usual. Construction has commenced on Nobia's 123,000 sqm production facility in Jönköping, and we are working full tilt on other ongoing projects. Market demand remains strong in this segment. We are also working to create even better opportunities for future business by acquiring land in strategic areas, most recently near Gardermoen Airport outside Oslo.

A LOOK FORWARD

Rising prices of construction materials are posing a significant challenge for the entire industry. It is always frustrating to be affected by factors that we have little opportunity to offer solutions to. We are monitoring the situation closely, both overall and regarding individual projects. Meanwhile, we are making use of the many supplier contacts we have built up over 40 years in the construction industry.

On a more positive note, I look forward to seeing what the Wästbygg Group can achieve in northern Sweden going forward. Logistic Contractor has recently signed a contract for an office in Luleå, and has recruited its first employee there. LC's ongoing establishment in the region in combination with Rekab Entreprenad's operations make us a strong and attractive partner in all our three business areas on the growing Norrland market.

Jörgen Andersson CEO Wästbygg Gruppen AB

General market situation

The economic recovery in Sweden, buoyed up by vaccination, economic stimulus and easing of restrictions, has been surprisingly positive. According to the National Institute of Economic Research's latest analysis, the whole economy is very strong. The prospects seem excellent for strong growth, both in the Swedish business sector and in public consumption and investment, thanks to low interest rates, healthy public finances, decreasing unemployment and a resilient industry. In addition to the pent-up consumer demand, both industry and the public sector are expected to make extensive investments as a result of the green transition and the effects of digitisation.

Against this positive backdrop, many economic analysts have adjusted their growth forecasts upwards for 2021–2022, and the overall picture suggests that GNP could climb by just over 4 percent this year and a further 3.5 percent in 2022. However, there are also significant risk factors regarding the increasing spread of the COVID delta variant as well as shortages in workforce and a lack of components and other materials when international demand rises. Another uncertainty factor is whether Cementa can continue its limestone quarrying activities in Slite. The risk of production stoppages could cause uncertainty during this year and next year, which could lead to investments being deferred.

NAVET Analytics expects the total volume of started building construction investments to grow by around 6 percent in 2021. This growth is expected to be widespread, and it is thought, in principle, that only investments in conversions in private premises could be at risk of negative growth. According to the forecasts, approximately 54,500 apartments are expected to start production this year, followed by a further 56,000 in 2022 and 59,000 in 2023. Production of both single-family and multi-residential housing is expected to increase due to the buoyant economy, low interest rates and surging housing prices, which will increase economic incentives. In light of the strong public finances and upcoming general elections in 2022, a temporary surge in investment in public building construction seems possible.

Uncertainty in the office, trade and meeting industries with regard to future changes in behaviours and consumer patterns could cause planned projects to be downsized or postponed. A sign of this uncertainty is that the rate of office construction remained unchanged in the first six months of this year compared with the same period in 2020.

Based on the National Institute of Economic Research's analysis of different factors, record levels have already been reached in the industry, and as capacity shortages intensify, so does the probability of rising building construction investment.

The combined investments in the Wästbygg Group's three business areas are estimated to have totalled just over 60 percent of the total annual volume for 2020 during the first six months of the year at a national level. If this rate of investment were to continue during the second half of the year, it could mean an increase of 25 percent. However, NAVET Analytics expects the rate of construction to slow slightly during the autumn, and the forecast is therefore more cautious than the annual rate. This year, the strongest growth is expected to be seen in the Logistics and Industry business area, and the forecast has improved since the previous report. The rate of construction in the Commercial business area has slowed compared with the June report. The forecast has been dampened slightly and is now in line with the annual rate. The forecast for all three business areas now indicates a 7 percent increase at national level.

Information compiled by NAVET Analytics

About us

The Wästbygg Group is a construction and project development company with a clear presence in the most rapidly expanding markets in Sweden. The company was founded in Borås in 1981. Wästbygg has offices in eight cities in Sweden and via the group company Logistic Contractor in our neighbouring Nordic countries of Norway, Denmark and Finland.

We operate in three business areas: Residential, Commercial – which includes community service properties – and Logistics and Industry, areas in which we have strong expertise and long experience. We also work with project development in each business area, and our expertise ranges from land acquisition/ allocation to completed properties. The group also includes the company Inwita Fastigheter, which owns and manages self-developed community service properties.

All our ongoing and completed projects are presented on our website, wastbygg.se.

A SUSTAINABLE BUSINESS

The Wästbygg Group's business concept is to develop and build sustainable, modern and efficient homes, commercial properties and logistics and industrial facilities in mutual trust with our customers. We take our mission as community builders very seriously. Within our area of activity, we want to contribute to a more sustainable society – ecologically, socially and economically – and thereby improve people's living environments.

Environmentally certified buildings are a way to safeguard the future. We have extensive experience of building according to the most common certification systems in the Swedish market: Miljöbyggnad, Svanen, Breeam and Green Building. We are also certified according to the Nordic Ecolabel Svanen, which means that we have the right to label our self-developed properties with the Nordic Ecolabel Svanen.

Since the mid-1990s, we have focused on developing our quality and environmental management procedures. Today, we use a selfdeveloped management system with detailed procedures and schedules in the areas of quality, environmental care and occupational health and safety. The group company Wästbygg Entreprenad AB is certified according to ISO 9001, 14001 and 45001.

OUR GROUP STRATEGIES

Wästbygg's five group strategies are set out in the group's business plan. They are designed to promote long-term development in areas defined as business-critical. The five strategies are:

• We generate strong profitability.
• We create added value for our customers and partners.
• We create sustainable business.
• We create proud employees.
• We build strong brands.

A set of long-term goals is linked to each strategy.

WÄSTBYGG GROUP'S BUSINESS MODEL

A description of the company's business model can be found in the annual report for 2020.

OVERALL GOALS (segment reporting)

Growth measured on the basis of revenue must be 10 percent over time, but always taking into account good profitability.

The long-term operating margin (EBIT) must exceed 6 percent. 30 September 2021: 8.1 percent

The equity/assets ratio shall not be less than 25 percent. 30 September 2021: 56 percent.

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Sustainability data

Wästbygg's green framework qualifies the company for green labelling of its share and debt instruments. Reporting on the greenness of Wästbygg's revenues, operating expenditures, investments and order backlog improves transparency regarding the company's climate commitments. The framework also serves as an internal control tool that helps us make more sustainable business decisions.

Our proportion of green revenues, costs and the green share of our order backlog increased in 2021. The figures relating to 2021 are based on Wästbygg's own calculations.

The proportion of women in the company is 28 percent. The proportion of female senior executives increased during the latest quarter to 31 percent. Sick leave has so far been lower in 2021 than in the previous year.

CORRECTION OF 2020 EMISSIONS

During the quarter, an error was discovered regarding the energy use previously reported for 2020. The reported volumes from a small number of suppliers had not been converted to CO2e by the company's system provider. This resulted in us reporting the correct usage but not the correct emissions (CO2e). A recalculation shows that electricity emissions amounted to 121 CO2e (scope 2) and 88 CO2e (scope 3), compared with 60 CO2e (scope 3) as previously reported. The diagram on the next page shows the company's emissions with the corrected electricity figures.

SICK LEAVE

PROPORTION OF WOMEN

WÄSTBYGG'S EMISSIONS IN 2020, tonnes of CO2e

* New emission factors for 2020.

** Temporary construction heating excluding electricity and district heating.

*** Emissions in 2019 have been reduced by 118 tonnes of CO2e due to erroneous information in last year's sustainability report.

**** Also includes electricity and district heating for temporary construction heating.

Emissions classified into scopes according to the Greenhouse Gas Protocol (GHG Protocol). The GHG Protocol is a global standard for measuring, managing and reporting greenhouse gas emissions. The standard classifies emissions into three 'scopes'. Scope 1 refers to direct emissions, while Scopes 2 and 3 refer to indirect emissions.

Scope 1: Emissions from combustion of fossil fuels.

Scope 2: Emissions from use of electricity, district heating and district cooling.

Scope 3: Emissions from goods and services, e.g. logistics, travel and material use.

ORDER BACKLOG

SEK million

Our business areas

The order intake for the first three quarters of the year was nearly SEK 3 billion, the highest figure ever reported for the January–September period. The order intake notably varies over the period, both in total and between business areas.

The Residential business area was roughly on a par with the previous year. The company's residential organisation is focusing strongly on preparing several large self-developed projects to start production, and on ensuring optimal implementation of the many construction assignments currently in production.

In the Commercial business area, we are now seeing the results of extensive sales efforts that have been carried out over a long period. The upward trend we have seen since the turn of the year has resulted in new orders of almost SEK 1 billion to date.

The new orders for Logistics and Industry has increased by 25 percent since the turn of the year. The new orders for Q3 consists of additional orders in existing projects, but market activity remains high. The landbank that we have built up through acquisition and partnerships will provide the company's business developers with yet another important tool for prospective future deals.

COLOUR CODING: Residential Commercial Logistics and Industry

NEW ORDERS
SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Residential	1	587	839	872	1,051	1,084
Commercial	634	17	989	202	1,053	266
Logistics and industry	68	296	1 115	892	2,105	1,882

Total 703 900 2,943 1,966 4,209 3,232

30 Sep 2020 31 Dec 2020

ORDER BACKLOG 30 SEPTEMBER 2021

REVENUE AND OPERATING PROFIT, SEK million, segment reporting

30 Sep 2021

Residential 1,358 1,311 1,173 Commercial 920 511 265 Logistics and industry 1,356 1,381 1,763 Total 3,634 3,203 3,201

SEASONAL VARIATIONS

Wästbygg's seasonal variations are mainly linked to new orders and revenue.

The level of new orders is usually higher during Q2 and Q4. This is explained by the fact that many customers want to conclude negotiations on new projects before the holiday period begins or before the end of the year.

The number of production days is lower during the third quarter of the year, when the holiday period occurs, which is reflected in both revenue and new orders.

As a result of COVID-19, the pattern changed slightly in 2020 when it comes to new orders.

RESIDENTIAL

Wästbygg builds apartment buildings for private and municipal clients. The company also develops and constructs rental apartments and tenant-owned apartments. Our goal is for the proportion of self-developed residential projects to be about 50 percent. As of 30 September, revenues from self-developed projects made up 51 percent of total revenue, compared to 24 percent a year ago, due to a combination of a higher number self-developed projects and a reduced volume of construction assignments.

Revenues in this business area rose slightly in Q3 compared to 2020, but so far remain lower overall this year. Six large residential projects have been completed since the start of the year, all of which had been in production for over a year. New projects have not commenced at the same rate. Two development projects were sold during Q3 and one was acquired.

Demand for the company's tenant-owned apartments remains high. At the end of the period, apartments were being sold in four self-developed projects. Tenants have moved into the apartments in one of these projects. These four projects comprise a total of 228 apartments, of which 176 had been sold and 35 reserved as of the end of the quarter. A further two projects are sold out and commenced production during the year. In October, sales commenced of Cityterrassen in Malmö with 174 apartments and Slottshusen in Täby with 89 apartments, both of which have attracted strong market interest. Planning is under way to commence sales of a further two self-developed projects before the end of the year: Tuvebo Glashytta in Gothenburg and Tjärleken in Norrtälje.

NEW PROJECTS AND AGREEMENTS ENTERED INTO

• A contract was signed with Fastighets AB Trianon regarding sales of Kv Trädgårn in Svedala, a self-developed project with 53 apartments. The transaction takes the form of a forward commitment. The agreed property value is SEK 112 million, and state investment aid of SEK 27 million will also be paid. Production has commenced.
• A contract was signed with Niam for the acquisition of building rights in Täby, consisting of two tenant-owner associations with 89 apartments (Slottshusen). The agreed property value is approximately SEK 310 million, and Wästbygg assumed the building rights on 16 August. Sales of the apartments will start in October.
• A contract was signed with Lansa Fastigheter for the sale of the self-developed residential project Journalen 1 in Sege Park in Malmö through a forward funding arrangement. Journalen 1 comprises an entire block of 177 rental apartments, and the agreed property value is approximately SEK 400 million. The deal is subject to a decision on state investment aid, as well as approval of building permits and title deeds. Start of production is planned for 2022.
• Wästbygg has received a land allocation for approximately 100 apartments in the Herrängen suburb of Stockholm.

PROFIT (SEK million)	2021	2020	2021	2020	2020
Revenue	178	167	658	849	1,122
– of which construction	56	109	321	644	812
– of which project development	121	57	336	204	310
Profit	5	4	17	4	8

BUSINESS AREA RESIDENTIAL IN FIGURES

Completed during the second quarter 24 Ongoing September 30, construction 709 Ongoing September 30, project development 490 Total in progress 1 199

Journalen 1 in Malmö.

NEW ORDERS/ORDER BACKLOG

DISTRIBUTION BY PROJECT TYPE, no of apts.

COMMERCIAL

The Commercial business area primarily builds retail properties, offices and community service properties. The majority of the projects are currently contract assignments. The company also develops and builds its own commercial projects, with the emphasis on community service properties.

Wästbygg's commercial operations are predominantly focused on the three metropolitan regions and on the company's other office locations. In cases where commercial projects are carried out elsewhere, it is primarily for repeat customers.

The Commercial business area has reported a very strong order intake so far this year. As an outcome of that, a negative result in the first half of 2021 has turned into a positive result in the third quarter. With a further seven new contracts signed during Q3, the company expects this business area to perform strongly going forward. The clients include repeat customers such as Svenska Handelsfastigheter, Hemsö and Coop via Sydsvenska Hem, as well as several new companies. The project with Harju Elekter is part of a larger internal collaboration that also includes a development project in Logistics and Industry.

The community service properties in the company's project portfolio will commence construction within the next year or few years. We are continuing to actively apply for land allocations and evaluate potential property acquisitions. A property manager was recently employed in the group company Inwita to build up and drive the company's business.

NEW PROJECTS AND AGREEMENTS ENTERED INTO

• Two construction contracts were signed with Sydsvenska Hem. A Coop store with an area of 3,100 sqm will be constructed in Svedala. The order value is SEK 43 million. The other project is for a 4,800 sqm padel facility in Staffanstorp. The order value is SEK 38 million.
• After completion of joint planning and design in Phase 1, a construction contract was signed with Pandox for the conversion of three storeys of the Quality Grand Hotel in Borås, covering a total area of 5,000 sqm. The order value is SEK 95 million.
• A contract was signed with Harju Elekter for the construction of a production facility in Malmö. The area is 3,000 sqm and the order value is SEK 45 million.
• A contract was signed with Hemsö for the construction of a 6,500 sqm sports centre in Lund. The order value is SEK 100 million.
• A construction contract was signed with Revelop for the conversion of parts of an office building in Kista into a hotel, AC Hotels by Marriott. An area of 9,000 sqm will be converted, and the order value is SEK 180 million.
• A contract was signed with Svenska Handelsfastigheter to construct premises for the store chain EKO Stormarknad and the restaurant Jureskogs Vägkrog in Trollhättan. The total area is 8,300 sqm and the order value is SEK 97 million.

DISTRIBUTION BY PROJECT TYPE, no of sqm

REVENUE AND PROFIT (SEK million)	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Jan-Dec 2020
Revenue	140	184	334	651	844
– of which construction	139	140	308	534	706
– of which project development	1	44	26	117	138
Profit	8	5	4	23	31
PRODUCTION, NO OF SQM
Completed during the second quarter 4,000 Ongoing September 30, construction 98,885

Ongoing September 30, project development 0 Total in progress 98,885

BUSINESS AREA COMMERCIAL IN FIGURES

LOGISTICS AND INDUSTRY

Operations in Wästbygg's logistics and industry segment are conducted in the group company Logistic Contractor, with operations in Sweden, Norway, Denmark and Finland. The company specialises in developing and building large logistics and industrial facilities designed for rational handling and large-scale operations in logistics and light manufacturing. The goal is for 50% of revenue to come from self-developed projects. The figures vary considerably from one period to another since most of the projects in Logistics and Industry have a relatively high order value. This means that individual projects have a strong impact on the way the figures are distributed.

The Swedish logistics market has been strong for several years and currently shows no signs of cooling off. However, more players have been attracted by this positive trend, which has resulted in increased competition.

Logistic Contractor's revenue and profit from one period to another is strongly influenced by the number of development projects the company works with and which phase each project is in. Two major development projects, Nelly and Dollarstore, were completed and handed over during the first six months.

Revenue during the first nine months of the year increased by 20 percent compared to the previous year, and profits increased by the same amount. One reason for this is that the Mathem project was in the start-up phase during much of 2020 but has been in full production since the turn of the year. The same applies to the facility being built for DHL at Copenhagen Airport, Kastrup.

Six projects were in production at the end of Q3, the same number as at that time the previous year. The results are also the same for both these quarters. However, volumes have increased, both with regard to revenues, which rose by ten percent, and area, which increased by 85,000 sqm. It should be noted that the Nobia project comprising 123,000 sqm that arose in Q2 is still in the start-up phase and has not yet started generating any significant revenues or profits.

The planned establishment of Logistic Contractor in northern Sweden is still under way. A project manager was recruited in Q3, and in late October a contract was signed for an office in Luleå. The Northvolt project has opened up many doors in the region. As further large industrial investments are being planned in Norrbotten and Västerbotten over the coming five years, the company sees excellent prospects for offering a competitive product in the logistics and industry market. The company is continuing to recruit employees for the Luleå office, at present a business developer.

Ensuring access to land in prime logistics and industrial locations is a strategically important complementary step in Logistic Contractor's continued development in Sweden as well as in neighbouring Nordic countries. Having our own land is very important in Norway, Denmark and Finland, where access to municipal industrial land is considerably more limited than in Sweden. So far this year, three contracts have been signed comprising a total of almost 600,000 sqm of land in Sweden and Norway. Work is under way to identify further opportunities for land acquisitions or partnerships with land owners. 266,000 sqm of land was acquired in Norway after the end of the period.

NEW PROJECTS AND AGREEMENTS ENTERED INTO

• A letter of intent was signed with Harju Elekter for the development and construction of 6,000 sqm of office and warehouse premises in Västerås. The deal was conditional upon a land purchase from Västerås Municipality. The land acquisition in question took place after the end of the period, and a contract was signed on 5 October.

PRODUCTION, NO OF SQM

Completed during the second quarter	19,200
Ongoing Sep 30, construction	298,000
Ongoing Sep 30, project development	45,000
Total in progress	343,000

BUSINESS AREA LOGISTICS AND INDUSTRY IN FIGURES

DEVELOPMENT PORTFOLIO, as of 30 September

ONGOING PROJECTS RESIDENTIAL/COMMERCIAL

Project, municipality	Type	No of apts.	Total area (sqm)	Phase	Start of production	Completion
Tuvebo Atelje, Göteborg	Self owned	71	4,679	Production	2020	2021
Lagerkransen 3, Lund	Rental	83	4,696	Production	2020	2022
Vårberg youth housing, Stockholm	Rental	174	5,967	Production	2020	2022
Parklyckan, Stockholm	Self owned	36	4,026	Production	2021	2022
Strandängen 1, Falkenberg	Self owned	29	2,445	Production	2021	2022
Kv Trädgårn, Svedala	Rental	53	3,768	Production	2021	2023
Soluret, Malmö	Self owned	45	3,240	Production	2021	2023
Totalt		491	28,821

UPCOMING PROJECTS RESIDENTIAL/COMMERCIAL

Project, municipality	Type	No of apts.	Total area (sqm)	Phase	Estimated start of production	Estimated completion
Slottshusen, Täby	Self owned	89	8,469	ZP in effect	2021	2023
Hökälla Ängar, phase 2, Göteborg	Self owned	36	3,589	ZP in effect	2021	2023
Cityterrassen, Malmö	Self owned	174	12,460	ZP in effect	2021	2024
Journalen 1, Malmö	Rental	177	9,622	ZP in effect	2022	2024
Östra Station, Kävlinge	Self owned	69	6,802	ZP in effect	2022	2024
Bollen preschool, Trelleborg*	CSP	0	900	ZP in effect	2022	2023
Borstahusen, Landskrona*	Self owned	60	4,300	ZP in effect	2022	2024
Fridhem, Ängelholm*	Self owned	80	5,200	ZP in effect	2022	2024
Tuvebo Glashytta, Göteborg	Self owned	45	2,673	ZP in effect	2022	2023
Lillhagsparken, phase 2C, Göteborg	Self owned	42	3,276	ZP in effect	2022	2024
Tjärleken, Norrtälje	Self owned	111	10,750	ZP in effect	2022	2024
Sparréallén, Borås	Commercial	0	3,200	ZP in effect	2022	2025
Västerport, Varberg	Hotel	0	18,250	Ongoing work ZP	2023	2026
Strandängen 2, sheltered housing, Falkenberg	CSP	80	5,280	Ongoing work ZP	2023	2024
Strandängen 2, care home, Falkenberg	CSP	60	3,800	Ongoing work ZP	2023	2024
Borstahusen townhouses, Landskrona*	Self owned	12	1,380	ZP in effect	2023	2024
Sparréallén, Borås	Self owned	20	1,200	ZP in effect	2023	2024
Citadellsfogen, Malmö*	Self owned	70	4,550	Ongoing work ZP	2024	2026
Skarpnäck, Stockholm	Rental	126	5,659	ZP in effect	2024	2026
Skarpnäck preschool, Stockholm	CSP	0	860	ZP in effect	2024	2026
Norra Saltskog, Södertälje*	Self owned	49	3,055	Ongoing work ZP	2024	2026
Vallastråket, Stockholm*	Self owned	70	4,200	Ongoing work ZP	2024	2026
Lilla Essingen Parkhuset, Stockholm	Self owned	24	1,849	ZP in effect	2025	2027
Solberga, Stockholm*	Self owned	35	4,025	No ZP	2025	2027
Kv Galten, Lund*	Rental/Commercial	60	9,780	Ongoing work ZP	2026	2029
Kv Galten, Lund*	Self owned	90	6,240	Ongoing work ZP	2026	2029
Solvalla hotel, Stockholm*	Hotel	0	6,900	No ZP	2026	2028
Solvalla youth housing, Stockholm*	Rental	120	4,115	No ZP	2026	2028
Lilla Essingen Strandhusen, Stockholm*	Self owned	74	6,032	ZP in effect	2026	2028
Svandammsplan, Stockholm*	Self owned	53	3,010	No ZP	2026	2027
Årsta phase 4a, Stockholm*	Self owned	79	5,401	Ongoing work ZP	2026	2028
Årsta phase 4b, Stockholm*	Rental	231	11,764	Ongoing work ZP	2026	2028
Citadellsfogen, Malmö*	Self owned	70	4,550	Ongoing work ZP	2026	2028
Vantörsvägen, Stockholm*	Rental	100	5,000	No ZP	2026	2028
Åseberget, Kungälv*	Not decided	150	10,000	No ZP	2026	2030
Västra Roslags-Näsby, Täby	Self owned	40	2,951	ZP in effect	2027	2028
Årsta phase 2n, Stockholm*	Self owned	237	14,506	Ongoing work ZP	2028	2030
Total		2,733	215,598

* Options, acquisitions have not yet been made. ZP = Zoning plan

DEVELOPMENT PORTFOLIO, as of 30 September

LANDBANK LOGISTICS AND INDUSTRY

Municipality	Type	Area sqm
Enköping	Acquisition	133,000
Nyköping	Joint venture	400,000
Sande, Norway	LOI for Joint venture	45,000
Total		578,000

Consolidated income statement

SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Revenue	767	720	2,718	2,696	3,642	3,620
Costs in production	-655	-612	-2,302	-2,373	-3,061	-3,132
Gross profit/loss	112	108	416	323	581	488
Sales and administration costs	-57	-52	-197	-169	-297	-269
Other operating revenue	3	0	5	4	5	4
Other operating costs	0	0	0	0	0	0
Other profit/loss	58	56	224	158	289	223
Profit/loss from financial items
Profit shares from joint ventures and associated companies	0	0	0	0	0	0
Financial revenue	4	4	9	9	9	9
Financial costs	-10	-1	-13	-6	-14	-7
Profit after financial items	52	59	220	161	284	225
Change in value of real estate	6	3	6	3	9	6
Profit before tax	58	62	226	164	293	231
Taxes	-2	-4	2	-12	18	3
Profit for the period	56	58	228	152	311	234
Profit relating to:
- the parent company's shareholders	56	58	228	152	311	234
- holdings without controlling influence	0	0	0	0	0	0
Earnings per share, SEK*	1.74	2.50	7.06	6.62	9.71	9.39
Number of shares at the end of the period (thousands)	32,340	22,950	32,340	22,950	32,340	32,340
Average number of shares (thousands)	32,340	22,950	32,340	22,950	31,947	24,913

* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

The Group's report on comprehensive income

SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Profit for the period	56	58	228	152	311	234
Other comprehensive income that can be transferred to the income statement
Currency difference when translating foreign operations	0	-2	1	-2	1	-2
Comprehensive income for the period	56	56	229	150	312	232
Total result attributable to: - the parent company's shareholders - holdings without controlling influence	56 0	56 0	229 0	150 0	312 0	232 0

COMMENTS ON THE INCOME STATEMENT

July – September 2021

Q3 has fewer working days than the other quarters due to the holiday period, which is also reflected in revenue, profit and new orders. Revenues were slightly higher than the previous year at SEK 767 million (720) while operating profit was on a par with 2020 at SEK 58 million (56). Both revenue and profit was held back by self-developed tenant-ownership projects in production, which will not be recognised as income until completion. Several new tenant-ownership projects commenced during the year with a production period extending into 2023.

Profit after tax amounted to SEK 56 million (58), which corresponds to earnings per share of SEK 1.74 (2.50). The operating margin was 7.6 percent (7.8).

The new orders for Q3 was SEK 703 million (900), with the main part attributable to the Commercial business area. However, a comparison with 2020 is not representative, since many orders were deferred from the second to the third quarter of last year due to the COVID-19 pandemic.

The order backlog was SEK 3,634 million (3,203) as of 30 September. This makes it roughly equivalent to the figure in the previous report and similar to the level for Q4 2019, i.e. before the pandemic.

January – September 2021

Revenues for the first three quarters are also roughly equivalent to those of the previous year at SEK 2,718 million (2,696). However, operating profit was significantly stronger than in 2020, amounting to SEK 224 million (158). Two self-developed tenantownership projects were completed and recognised in their entirety in the income statement during the spring, after a production time of almost two years. During the same period 2020 only one self-developed tenant-ownership project was completed.

Profit after tax amounted to SEK 228 million (152), corresponding to earnings per share of SEK 7.06 (6.62).

The total order intake was SEK 2,943 million (1,966).

October 2020 – September 2021

The trend during the three most recent quarters has been for revenues to remain similar to the previous year but for profitability to increase. A comparison between the rolling 12-month period and the full 2020 financial year reveals the same picture. Revenues for the rolling 12-month period amounted to SEK 3,642 million, compared to SEK 3,620 million for the full 2020 financial year while the operating profit amounted to SEK 289 million, compared to SEK 223 million. Also the new orders are stronger and amounted to SEK 4,209 million for the rolling 12-month period compared with SEK 3,232 million for the full 2020 financial year. This creates good prospects for continued positive development during both Q4 and 2022.

PERSONNEL

The strong new orders so far this year has resulted in a need to increase the number of employees. At the end of the period the group had 333 employees, compared with 311 at the start of the year. Throughout the COVID-19 pandemic, the group has worked with full staffing, and no redundancies or other reductions have been required.

REVENUE AND OPERATING PROFIT, SEK million/quarter

NEW ORDERS AND ORDER BACKLOG, SEK million/quarter

Group balance sheet

SEK million	30 Sep 2021	30 Sep 2020	31 Dec 2020
ASSETS
Fixed assets
Intangible fixed assets Goodwill	229	229	229
Other intangible fixed assets	9	7	8
Total	238	236	237
Tangible fixed assets
Investment properties	75	43	59
User rights assets	26	34	30
Inventory, tools and installations	4	6	6
Total	105	83	95
Financial fixed assets
Shares in joint ventures and associated companies	11	11	11
Deferred tax receivables	48	25	42
Non-current financial assets	0	0	0
Total	59	36	53
Total fixed assets	402	355	385
Current assets
Development properties, etc.	279	96	75
Tenant-owner association flats of own development under production	796	629	740
Accounts receivable	335	324	506
Accrued but not invoiced	338	367	272
Tax receivables	28	30	26
Receivables from group companies	12	12	12
Other receivables	305	98	277
Prepaid costs and accrued income	15	17	17
Cash and cash equivalents	787	105	860
Total current assets	2,895	1,678	2,785
TOTAL ASSETS	3,297	2,033	3,170

SEK million	30 Sep 2021	30 Sep 2020	31 Dec 2020
TOTAL EQUITY AND LIABILITIES
Equity
Share capital*	4	3	4
Other contributed capital	946	83	946
Retained earnings	533	408	408
This year's comprehensive income	229	150	232
Total equity attributable to the company's shareholders	1,712	644	1,590
Holdings without controlling influence	4	3	3
Total equity	1,716	647	1,593
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to group companies	-	30	-
Liabilities to credit institutions	106	0	58
Debts user rights	12	20	16
Total	118	50	74
Non-current non-interest-bearing liabilities
Deferred tax liabilities	6	2	4
Other provisions	68	23	63
Total	74	25	67
Total non-current liabilities	192	75	141
Current liabilities
Current interest-bearing liabilities
Liabilities to credit institutions	170	259	304
Debts user rights	15	17	16
Other liabilities**	225	-	225
Total	410	276	545
Current non-interest-bearing liabilities
Accounts payable	292	329	247
Advance from customer	495	282	362
Tax liabilities	1	6	2
Other liabilities**	79	324	151
Accrued expenses and prepaid income	112	94	129
Total	979	1 035	891
Total current liabilities	1,389	1,311	1,436
TOTAL EQUITY AND LIABILITIES	3,297	2,033	3,170

INTEREST-BEARING NET CASH / NET DEBT

Interest-bearing assets	956	117	872
Interest-bearing liabilities	528	326	620
Interest-bearing net cash/net debt	428	-209	252

* At the Annual General Meeting on March 23, 2020, it was decided to increase the number of shares in the company by dividing each share into 450 shares (share split 1: 450). Following the division of shares, the number of shares in the company has increased from 51,000 shares to 22,950,000 shares. It was decided to set up shares of two kinds; Class A shares and Class B shares. Class A shares entitle to ten votes each and Class B shares entitle to one vote each. The A and B shares have an equal right to profit and other value transfer. Registration at the Swedish Companies Registration Office was made on 8 April 2020.

** A reclassification has been made of Other liabilities, see accounting principles on page 22.

Changes in the Group's equity in summary

SEK million	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Equity attributable to the parent company's owners
Amount at the beginning of the period	1,590	569	644	569
New issue of shares	–	–	901	901
Transaction costs new issue of shares	–	–	-37	-37
Dividend	-107	-75	-107	-75
Comprehensive income for the period	229	150	311	232
Amount at the end of the period	1,712	644	1,712	1,590
Holdings without controlling influence
Amount at the beginning of the period	3	3	4	3
Comprehensive income for the period	0	0	0	0
Amount at the end of the period	4	3	4	3
TOTAL EQUITY	1,716	647	1,716	1,593

COMMENTS ON THE BALANCE SHEET AND EQUITY

The Wästbygg Group has a strong cash position resulting from the new share issue and listing on Nasdaq Stockholm in 2020, and has enjoyed a positive earnings trend for several years. In addition, the company has handed over five self-developed projects so far this year: two in Residential, one in Commercial and two in Logistics and Industry. However, the company is now entering another phase. Several new development projects have commenced, and investments have been made in land and building rights during the year.

Equity per share amounted to SEK 52.96 (28.06) at the end of the period.

The Group reported interest-bearing net cash of SEK 428 million (-209) at the end of the period. The net cash amounted to SEK 252 million (-7) on 1 January.

The Other receivables item includes a claim related to a non-consolidated project company and the purchase consideration for a non-consolidated project property in Borås acquired

during the first quarter. None of these are self-developed tenant-ownership projects.

The Development properties item includes a land acquisition of logistics and industrial land in Enköping for SEK 165 million.

The equity ratio at the end of the period was 52 percent (32). The Group's strong equity ratio is a result of the new share issue in 2020 as well as a positive earnings trend so far this year. However, it is held back by non-extracted gains in self-developed tenant-ownership projects currently in progress, since, in accordance with the accounting principles, these projects will only be recognised in the income statement upon completion.

The Annual General Meeting of 6 May adopted a dividend of SEK 3.30 per share, SEK 107 million in total, which was paid out on 14 May.

Group cash flow analysis

SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Day-to-day operations
Profit/loss before financial items	58	56	224	158	289	223
Adjustment for items not included in cash flow	6	5	9	19	53	64
Received interest	4	4	9	9	9	9
Paid interest	-10	-1	-13	-6	-14	-7
Paid tax	-3	-5	-4	-15	-5	-16
Cash flow from operating activities before changes in working capital	55	59	225	165	332	273
Cash flow from changes in working capital Increase (-)/decrease (+) of tenant-owner association
flats of own development in production	-360	-61	-474	-95	-585	-206
Increase (-)/decrease (+) of accounts receivable	93	23	173	44	-15	-144
Increase (-)/decrease (+) of other operating receivables	59	-132	-292	12	-355	-52
Increase (+)/decrease (-) of accounts payable	12	-13	46	-187	-36	-268
Increase (+)/decrease (-) of operating liabilities	-50	133	196	-17	373	160
Cash flow from the day-to-day operations	-191	9	-126	-78	-286	-237
Investment activities
Investments in businesses, including additional purchase sums	0	-	0	–	0	0
Acquisitions of intangible fixed assets	0	-1	-2	-2	-3	-3
Investments in investment properties	5	-21	-10	-40	-23	-53
Acquisitions of other tangible fixed assets	-3	-2	-10	-2	-11	-4
Cash flow from investing activities	2	-24	-22	-44	-37	-60
Financing activities
New issue of shares	–	–	–	–	901	901
Transaction costs new issue of shares	–	–	–	–	-37	-37
Paid dividend	–	–	-107	-75	-107	-75
Amortisation of loan liabilities	-2	-8	-4	-155	-53	-204
Raised loan liabilities	54	61	183	164	300	281
Change of overdraft facility	–	-8	–	–	–	–
Cash flow from financing activities	52	45	72	-66	1,004	866
CASH FLOW FOR THE PERIOD	-138	30	-75	-188	682	569
Cash and cash equivalents at the start of the period	924	80	860	298	105	298
Exchange rate difference in cash and cash equivalents	1	-5	2	-5	0	-7
Cash and cash equivalents at the end of the period	787	105	787	105	787	860

COMMENTS ON CASH FLOW

Variations in cash flow from one period to another are a natural consequence of the number of development projects in progress and the number of projects sold. A negative cash flow from current operations during certain periods is completely in line with the company's strategy to increase the proportion of development projects.

Total cash flow during Q3 amounted to SEK -138 million (30), divided into current operations SEK -191 million (9), investment operations SEK 2 million (-24) and financing operations SEK 52 million (45).

Cash flow from current operations was affected by, among other things, an acquisition of building rights in Täby for SEK 310 million. Wästbygg assumed the building rights in August.

Total cash flow for the first three quarters amounted to SEK -75 million (-188), divided into current operations SEK -126 million (-78), investment operations SEK -22 million (-44) and financing operations SEK 72 million (-66).

Five self-developed projects have been handed over so far this year, which has had a positive effect on cash flow from current operations. In addition to the acquisition of the building rights in Täby in Q3, cash flow was affected by a land acquisition in Enköping and a project property in Borås.

The company is in a period where cash has and will continue to be used for new development projects; see increase in self-developed tenant-ownership projects under production.

The cash flow from financing operations includes an adopted dividend of SEK 107 million.

Parent company income statement IN SUMMARY

SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Revenue	25	20	73	62	76	65
Other operating revenue	0	0	0	0	0	0
Total operating income	25	20	73	62	76	65
Staff costs	-12	-7	-42	-31	-59	-48
Other external costs	-13	-15	-42	-50	-69	-77
Operating profit/loss	0	-2	-11	-19	-52	-60
Profit/loss from financial items
Other interest income and similar income items	8	4	21	12	210	201
Interest expenses and similar income items	-5	-7	-12	-26	-16	-30
Profit after financial items	3	-5	-2	-33	142	111
Year-end appropriations	-	-	-	-	83	83
Profit before tax	3	-5	-2	-33	225	194
Taxes	-1	1	0	7	-7	0
Profit for the period	2	-4	-2	-26	218	194

Parent company balance sheet IN SUMMARY

SEK million	30 Sep 2021	30 Sep 2020	31 Dec 2020
ASSETS
Intangible fixed assets	4	2	3
Tangible fixed assets	3	4	4
Financial fixed assets	115	320	320
Total fixed assets	122	326	327
Current receivables	1,391	614	1,134
Cash and bank balances	266	4	496
Total current assets	1,657	618	1,630
TOTAL ASSETS	1,779	944	1,957
TOTAL EQUITY AND LIABILITIES
Restricted equity	4	3	4
Unrestricted equity	1,310	335	1,418
Total equity	1,314	338	1,422
Non-current liabilities	-	30	-
Current liabilities	465	576	535
TOTAL EQUITY AND LIABILITIES	1,779	944	1,957

Notes and other financial information

NOTE 1. ACCOUNTING POLICIES

The interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act.

Consolidated financial statements are prepared in accordance with IFRS from the 2015 financial year. The accounting principles applied in the interim report are described in the annual report for 2020 on pages 81–87. Accounting principles and calculation methods for the Groupare unchanged compared with the annual report last year.

New standards applied from 1 January 2021

New or amended IFRS standards applied from 2021 have no or little impact on Wästbygg Gruppen's financial reporting.

Standards, amendments and interpretations concerning existing standards that have not yet entered into force and are not applied prematurely by the Group

As of the date of approval of this financial report, certain new standards, amendments and interpretations of existing standards that have not yet entered into force have been published by IASB. These have not been applied prematurely by the Group and the changes are not expected to have a significant impact on the financial statements during the financial year in which they are to be applied for the first time and therefore no information has been provided.

Reclassificaiton of interest-bearing liability

A short-term interest-bearing liability of SEK 225 million was recognised as a short-term non-interest bearing liability as per 31 December 2020. As of this interim report, this has been corrected and the item is recognised under short-term interest-bearing liabilities. The key ratios Operating capital and Net cash have been recalculated for 31 December 2020, 31 March 2021 and 30 June 2021; see table below. These key ratios were also affected by interest-bearing receivables recognised under the Other receivables item in the balance sheet. As this change has no material impact on profit, no other reports and key ratios have been recalculated.

Recalculated key ratios

Dec 31, 2020	Mar 31, 2021	Jun 30, 2021
785	748	630
1,010	973	855
477	664	684
252	523	646

NOTE 2. SEGMENT REPORTING

Wästbygg Gruppen's segment reporting follows the Group's internal reporting to company management and the board, as this is how the board and group management controls and monitors

operations. The segment reporting reports revenue recognition for project development of owner-occupied flats over time.

SEGMENT REPORT I IN SUMMARY, SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
REVENUE
Residential	178	167	658	849	931	1 122
Of which internal sales	-	0	-	2	-	2
Commercial	140	184	334	651	527	844
Of which internal sales	-	-	-	-	-	-
Logistics and industry*	504	424	1,555	1,301	2,089	1,835
Of which internal sales	-	-	-	1	0	0
Other**	25	20	73	62	76	65
Of which internal sales	25	20	73	62	76	65
Group adjustments	-25	-22	-73	-65	-73	-65
Total	822	773	2,547	2,798	3,550	3,801
IFRS adjustment (attributable to the Residential segment)	-55	-53	170	-102	92	-181
Total IFRS	767	720	2,718	2,696	3,642	3,620
OPERATING PROFIT
Residential	5	4	17	4	21	8
Operating margin	2,8 %	2,4 %	2,6 %	0,5 %	2,3 %	0,7 %
Commercial	8	5	4	23	12	31
Operating margin	5,7 %	2,7 %	1,2 %	3,5 %	2,3 %	3,7 %
Logistics and industry*	61	61	203	168	308	274
Operating margin	12,1 %	14,4 %	13,1 %	12,9 %	14,7 %	14,9 %
Other**	0	-2	-11	-19	-52	-60
Group adjustments	0	0	-6	1	-4	1
Total	74	67	207	177	285	254
Operating margin	9,0 %	8,7 %	8,1 %	6,3 %	8,0 %	6,7 %
Financial items	-1	3	1	3	3	5
Change in value of real estate	6	3	6	3	9	6
Profit before tax, segment	79	73	214	183	297	265
IFRS adjustment (attributable to the Residential segment)	-20	-11	11	-19	-4	-34
Profit before tax, IFRS	58	62	226	164	293	231

* Distribution by geographic market is reported under section Logistics and industry on page 12. Only Logistic and industry have operations abroad.

** Segment Other consists of the parent company's operations and contains only internally invoiced revenue. As a result, the operating margin for Other is not reported. The parent company's operations consist of support functions for the segments in the form of departments for finance, HR, QEW, sustainability, IT and communications as well as group management.

The transfer pricing between the operating segments takes place on market terms. Financial items and taxes are not distributed by segment, nor are they followed up by the highest executive decision-makers, which is why they have been excluded from the table above. The equivalent also applies to assets and liabilities. There is also no items affecting cash flow or separate reporting of depreciation per segment as those amounts are small.

NOTE 3. DISPUTES

The Group has discussions or disputes with customers or partners from time to time about commercial terms. In exceptional cases, this takes place in an arbitration or other legal instance. In some cases, they are evaluated by external legal representatives in consultation with internal resources. The report reflects at all times the best overall assessment that has been made, but actual outcomes may deviate as in some cases these are complex assessments.

NOTE 4. RISKS AND UNCERTAINTY FACTORS

The group is continuously working on managing risks and uncertainty factors and places strong focus on vulnerability reduction measures. The group's risks are primarily related to three areas: external environment risks, operational project and contract risks including sustainability risks, and financial risks. A more comprehensive risk analysis can be found in the company's annual report for 2020 on pages 66–69. No significant changes took place that have changed these reported risks.

The COVID-19 pandemic continues, but restrictions in society were eased on 29 September as infection rates have fallen due to a high vaccination rate. For Wästbygg, this means that most of our work will once again be carried out at the workplace. The company will continue to actively strive to conduct its operations in accordance with the Public Health Agency of Sweden's remaining guidelines and other restrictions.

The company has also paid special attention to how the continued spread of the pandemic may affect future development and/or risks that may affect financial reporting in the future. The impact on the company is still deemed to be limited, but uncertainty factors remain regarding future developments, not least around the impact of COVID-19 on deliveries of materials and components.

There is some uncertainty regarding availability of domestically produced concrete, which could develop into a risk going forward depending on the decisions ultimately made about limestone quarrying in Gotland. Wästbygg already collaborates with several suppliers, and is reviewing future possibilities for purchasing concrete based on various scenarios.

NOTE 5. PARENT COMPANY AND OTHER GROUP ITEMS

The parent company's intra-group revenues for the quarter amounted to SEK 25 million (20) and the profit after net financial items was SEK 3 million (-5).

NOTE 6. TRANSACTIONS WITH RELATED COMPANIES

Wästbygg's largest shareholder is M2 Holding AB. M2 is owned and controlled by Rutger Arnhult, who is also a Board member of M2. The M2 Group has significant direct and indirect ownership interests in Corem Property Group AB, Klövern AB and Castellum AB, which are part of the group of related companies but are not group companies connected with Wästbygg. Rutger Arnhult is Chairman of the Board of Castellum.

Wästbygg carries out construction assignments in competition for Klövern, Corem Property Group and M2. Wästbygg has previously also carried out assignments for Castellum, but all these assignments were completed before Castellum could be regarded as a related company.

Revenue accrued in current projects is shown in the adjacent table. The figure for Corem also includes project development profit. As of the balance sheet date there were no financial liabilities to M2, compared to SEK 30 million including accrued interest as of 30 September 2020. Accounts receivable to related companies stood at SEK 4 million (15).

Corem acquired the majority of the shares in Klövern during the second quarter. Therefore, as of the third quarter, related company transactions with Klövern are included in the information for Corem.

Accrued revenue

SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Corem*	4	52	43	168	86	211
M2	15	15	79	68	81	70
Totalt	20	67	123	236	167	280

* Following Corem's acquisition of Klövern during the second quarter of this year, combined figures for Klövern and Corem are reported. The figures include accrued revenue for Tobin Properties, which is a wholly owned subsidiary of Klövern.

NOTE 7. FINANCIAL INSTRUMENTS

The Group's financial instruments essentially consist of financial assets and financial liabilities that are valued at accrued acquisition value. Financial instruments that are valued at fair value consist of currency futures and contingent purchase consideration, which amount to insignificant amounts. Further information can be found in the Group's annual report for 2020 in Note 1 Accounting Principles and Note 26 Financial Risk Management and Financial Instruments.

At the end of the period, the Group had no financial instruments.

NOTE 8. BUSINESS ACQUISITIONS

On 24 September 2021, the Wästbygg Group concluded an agreement to acquire all shares in Rekab Entreprenad AB from its holding company Trekcyd AB. Rekab, a company with 175 employees, is one of the leading construction companies in northern Sweden and has local offices in Umeå, Sundsvall, Örnsköldsvik, Skellefteå and Luleå. Through this acquisition, the Wästbygg Group will now also become a significant actor in the construction industry in northern Sweden.

Rekab builds community service properties such as schools and hospitals, as well as residential and commercial buildings. The company also conducts project development operations and has carried out several self-developed residential projects. In the past three years, it has had average annual sales of almost SEK 1 billion and an operating margin that is well in line with the Wästbygg Group's overall goals. For 2020 it reported revenues of SEK 900 million and profit after financial items of SEK 69 million.

The purchase consideration is SEK 230 million on a debt-free basis, of which SEK 147.2 million is to be paid in cash and SEK 82.8 million through buyback and transfer of own shares.

The acquisition was conditional on the approval of the Swedish Competition Authority, and the financing solution for the acquisition depended on a decision by the annual general meeting of the Wästbygg Group concerning repurchase and transfer of 850,626 of its own shares, split into two equal tranches. The value of these shares is based on the volume-weighted average price on the ten banking days prior to the possession date.

The acquisition was completed on 28 October after approval was obtained from the Swedish Competition Authority on 7 October and the necessary decision regarding the financing solution was taken at an extraordinary general meeting of the Wästbygg Group on 21 October.

As the acquisition was completed on 28 October, no acquisition analysis was prepared prior to the publication of this report.

Quarterly overview* FINANCIAL OVERVIEW AND KEY RATIOS

	Jul-Sep 2021	Apr-Jun 2021	Jan-Mar 2021	Oct-Dec 2020	Jul-Sep 2020	Apr-Jun 2020	Jan-Mar 2020	Oct-Dec 2019
Financial key ratios
Revenue	767	1,051	900	924	720	1,050	926	1,046
Operating profit	58	91	76	65	56	77	25	40
Operating margin, %	7,6	8,7	8,4	7,0	7,8	7,3	2,7	3,8
Profit/loss after tax	56	99	73	82	58	69	25	40
Balance sheet	3,297	3,208	3,134	3,170	2,033	1,806	1,699	2,144
Equity/assets ratio, %	52	52	53	50	32	33	31	27
Return on equity, %	18	19	17	21	31	39	41	39
Operating capital	1,102	**855	**973	**1,010	514	455	338	270
Interest-bearing net cash (+) / net debt (-)	428	**646	**523	**252	-209	-189	-139	-7
Cash flow from operating activities	-191	72	-7	-161	9	-38	-47	-23
Equity related key ratios
Earnings per share , SEK***	1.74	3.05	2.27	2.66	2.50	3.01	1.08	1.77
Equity per share, SEK	52.96	51.21	51.49	49.17	28.04	25.52	22.58	24.81
Number of shares at the end of the period (thousands)	32,340	32,340	32,340	32,340	22,950	22,950	22,950	22,950
Average number of shares (thousands)	32,340	32,340	32,340	30,782	22,950	22,950	22,950	22,950
Segment reporting
Financial key ratios
Revenue	822	911	814	1 002	773	1 124	901	1 141
Operating profit	74	68	66	77	67	86	24	56
Operating margin, %	9,0	7,5	8,1	7,7	8,7	7,7	2,7	4,9
Profit/loss after tax	75	77	65	97	68	79	24	55
Balance sheet	3,136	3,087	2,857	2,872	1,727	1,596	1,499	1,893
Equity/assets ratio, %	56	55	60	57	40	39	36	31
Return on equity, %	18	18	18	23	35	32	31	33
Operating capital	947	**731	**760	**800	361	328	240	177
Interest-bearing net cash (+) /net debt (-)	856	**996	**1,031	**876	6	-12	-3	129
Cash flow from operating activities	-141	92	124	-97	47	-3	-47	68
Equity related key ratios Earnings per share , SEK***	2.31	2.37	2.01	3.16	2.95	3.45	1.03	2.38
Equity per share, SEK	54.33	52.02	52.98	50.92	29.87	26.91	23.43	25.78
Number of shares at the end of	32,340	32,340	32,340	32,340	22,950	22,950	22,950	22,950
the period (thousands) Average number of shares	32,340	32,340	32,340	30,782	22,950	22,950	22,950	22,950
(thousands)
Operational key ratios
New orders	703	1,473	767	1,266	900	433	633	1,359
Order backlog	3,634	3,666	3,102	3,201	3,203	2,864	3,580	3,752

No of employees at end of period 333 328 315 311 315 308 308 305

For key ratio definitions, see page 26.

* The key ratios for the Group are shown above, both in accordance with IFRS and the segment accounting applied for internal control and monitoring, see Note 2 on page 23 for further information.

** As of Q4 2020, the KPIs Working capital and Interest-bearing net cash/net debt have been recalculated due to a reclassification of Other liabilities, see accounting principles on page 22.

*** The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

KEY RATIOS AND DEFINITIONS

The Group: Wästbygg presents certain financial measures in the interim report that are not defined by IFRS. The key ratios on page 3 and 25 are chosen on the basis that they are considered to give a fair view of the Company's operations and development. They are also commonly used among other companies, which facilitates comparisons. The key figures listed below are not defined in accordance with IFRS unless otherwise stated.

Revenue growth (CAGR)
Definition:	Revenue for the period divided by reve-nue for the previous period, raised to one divided by the number of years between the two periods, minus one.
Purpose:	Shows the company's ability to increase revenue over time.
Reconciliation table:	A Revenue B Comparison perid revenue C Number of years between periods (A/B)^(1/C)-1 = Revenue growth, %
Operating margin
Definition:	Operating profit/loss in relation to revenue.
Purpose:	Shows the company's earning capacity.
Reconciliation	A Operating profit/loss	Earnings per share, IFRS
table:	B Revenue A/B = Operating margin, %
Equity/assets ratio Definition:	Equity in relation to the balance sheet total.
Purpose:	Describes the capital structure of the company.
Reconciliation	A Total equity B Balance sheet total
table:	A/B = Equity/assets ratio, %	Equity per share, IFRS
Return on equity			of the period.
Definition:	Profit for the period divided by average equity for
	the period.
Purpose:	Shows the company's ability to generate return on equity.
Reconciliation	A Profit/loss for the period (rolling 12 months)
table:	B Equity at the beginning of the period C Equity at the end of the period	New orders
	A/(B+C)/2 = Return on equity, %
Operating capital
Definition:	Current assets (excluding cash and cash equivalents and
	tax receivables) less current non-interest-bearing liabilities (excluding tax liabilities).
Purpose:	Shows the company's tied up capital.
Reconciliation	A Current assets	Order backlog
table:	B Cash and cash equivalents C Current non-interest-bearing liabilities A-B-C = Operating capital

Segment: As for the key ratios provided in Note 2 and in Appendix 1 on page 30–35, they are regarded as alternative key ratios. They have the same definition as key ratios below, but are based on segment figures.

Interest-bearing net debt/net cash

Definition:	Interest-bearing assets (including cash and cash equiva lents and receivables from group companies) less interest-bearing liabilities.
Purpose:	Shows the company's real indebtedness.
Reconciliation table:	Receivables from group companies + Cash and cash equivalents + Other interest-bearing receivables = A Interest-bearing assets
	Non-current interest-bearing liablilities + Current interest-bearing liablilites = B Interest-bearing liabilities
	A-B = Interest bearing net debt (+)/net cash (-)
Earnings per share, IFRS
Definition:	Profit/loss attributable to the company's shareholders in relation to the number of outstanding shares
Purpose:	Illustrates each share's share of the period's earnings.
Reconciliation table:	A Profit for the period B Average number of shares at the end of the period A/B = Earnings per share, SEK
Equity per share, IFRS
Definition:	Equity attributable to the company's shareholders in relation to the number of outstanding shares at the end of the period.
Purpose:	Illustrates each share's share of the equity.
Reconciliation table:	A Equity at the end of the period B Number of shares at the end of the period A/B = Equity per share, SEK
New orders
Definition:	The value of projects received and changes to existing projects during the current period. Tenant-owner asso ciation projects of own development are included in new orders as soon as a construction agreement has been signed for construction.
Purpose:	Shows the company's sales during the current period.
Order backlog
Definition:	The value at the end of the period of the remaining unprocessed project revenue in pending assignments. Tenant-owner association projects of own development are included in the order stock as soon as a construction agreement has been signed for construction.

As amounts have been rounded to SEK million, the tables do not always sum up.

Purpose: Shows the company's revenues in future periods.

The Wästbygg share

Wästbygg Gruppen AB was listed on Nasdaq Stockholm on 13 October 2020 under the ticker code WBGR. On 30 September 2021 the share price closed at SEK 96.50, equivalent to a stock market value of SEK 3,121 million calculated based on the number of outstanding shares.

As per 30 September, the share capital amounted to SEK 3,593,352, divided into 620,000 Class A shares and 31,720,165 Class B shares.

At the end of the quarter Wästbygg had 5,172 shareholders. The proportion of foreign ownership was just over 6 percent of the share capital. The ten largest shareholders controlled almost 87 percent of the capital and just over 89 percent of the votes. The table below shows the ten confirmed largest shareholders.

DIVIDEND

Wästbygg has a long-term goal for the dividend over time to amount to 40 percent of net profit based on segment reporting. The Annual General Meeting of 6 May adopted a dividend of SEK 3.30 per share. The dividend was paid out in a single instalment on 14 May.

GREEN LABELLING

The Wästbygg share has been one of the first in Sweden to be approved for Nasdaq Green Equity Designation.

THE WÄSTBYGG GROUP'S TEN LARGEST SHAREHOLDERS, 30 SEPTEMBER 2021

Name	No of Class A-shares	No of Class B-shares	Total no of shares	Proportion of capital	Proportion of votes
M2 Holding AB	337,500	19,111,500	19,449,000	60.14%	59.30%
Fino Förvaltning AB	282,500	1,656,000	1,938,500	5.99%	11.82%
Svolder	-	2,583,916	2,583,916	7.99%	6.81%
Länsförsäkringar Fonder	-	2,535,560	2,535,560	7.84%	6.69%
Öhman Fonder	-	584,370	584,370	1.81%	1.54%
Carnegie Fonder	-	348,000	348,000	1.08%	0.92%
Gårdarike Invest AB	-	300,000	300,000	0.93%	0.79%
Handelsbanken Fonder	-	204,926	204,926	0.63%	0.54%
SEB Fonder	-	200,421	200,421	0.62%	0.53%
Skandrenting AB	-	175,000	175,000	0.54%	0.46%
Övriga aktieägare	-	4,020,472	4,020,472	12.40%	10.60%
Totalt	620,000	31,720,165,	32,340,165	100.00 %	100.00 %

SHARE PRICE SHAREHOLDER DISTRIBUTION

Source: Monitor by Modular Finance AB. Compiled and processed data from various sources, including Euroclear, Morningstar and the Swedish Financial Supervisory Authority (Finansinspektionen).

The Board

DECLARATION

The Board of directors and the President declares that the interim report provides a fair overview of the parent company's and the Group's operations, position and results and describes significant risks and uncertainties that the parent company and the companies included in the Group face. The report has been reviewed by the company's auditors.

Gothenburg 9 November 2021

Wästbygg Gruppen AB (publ)

CECILIA MARLOW JÖRGEN ANDERSSON LENNART EKELUND Chairman CEO and board member Board member

CHRISTINA KÄLLENFORS JOACIM SJÖBERG Board member Board member

The information is such that the Wästbygg Group (publ) must publish in accordance with the EU Market Abuse Regulation. The information was submitted for publication on 9 November 2021 at 08:00.

This interim report has been published in Swedish and English. In the event of a discrepancy between the language versions, the Swedish version shall prevail.

Auditor's report on review of interim financial information in summary (interim report) prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act (1995:1554).

To the board of Wästbygg Gruppen AB (publ) Corporation number 556878-5538

INTRODUCTION

We have reviewed the interim financial information in summary (interim report) of Wästbygg Gruppen AB (publ) as of September 30, 2021 and the nine-month period then ended. The board of Directors and the CEO are responsible for the preparation and fair presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards. The procedures performed in a review do not enable us to obtain assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the group in accordance with IAS 34 and for the parent company in accordance with the Swedish Annual Accounts Act.

Stockholm 9 November 2021

Grant Thornton Sweden AB

Lars Kjellgren Camilla Nilsson Auditor in charge

Authorized Public Accountant Authorized Public Accountant

Appendix 1

The Wästbygg Group's segment report contains alternative key ratios to describe how the business develops over time and provide an opportunity for a clearer comparison between different periods. These also follows the Group's internal reporting as this is how the board and group management controls and monitors operations. The alternative key figures are a complement to reporting in accordance

with IFRS. The difference between the two ways of reporting is described in Note 2 and concerns how tenant-owner association projects of own development are reported. Below and on the following five pages are the income statement, balance sheet, changes in equity and cash flow analysis according to segment reporting.

CONSOLIDATED INCOME STATEMENT– SEGMENT REPORT, SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Revenue	822	773	2,547	2,798	3,550	3,801
Costs in production	-694	-654	-2,149	-2,456	-2,973	-3,281
Gross profit/loss	128	119	398	342	577	520
Sales and administration costs	-57	-52	-196	-169	-297	-269
Other operating revenue	3	0	5	4	5	4
Other operating costs	0	0	0	0	0	-1
Other profit/loss	74	67	207	177	285	254
Profit/loss from financial items
Profit shares from joint venture and associated companies	0	0	0	0	0	0
Financial revenue	9	4	14	9	17	12
Financial costs	-10	-1	-13	-6	-14	-7
Profit after financial items	73	70	208	180	288	259
Change in value of real estate	6	3	6	3	9	6
Profit before tax	79	73	214	183	297	265
Taxes	-4	-5	2	-12	17	3
Profit for the period	75	68	216	171	314	268
Profit attributable to:
- the parent company's shareholders	75	68	216	171	314	268
- holdings without controlling influence	0	0	0	0	0	0
Earnings per share, SEK*	2.31	2.95	6.68	7.43	9.80	10.75
Number of shares at the end of the period (thousands)	32,340	22,950	32,340	22,950	32,340	32,340
Average number of shares (thousands)	32,340	22,950	32,340	22,950	31,947	24,913

* The company has no options and similar agreements that give rise to a dilution effect, therefore this is not reported separately.

Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
75	68	216	171	314	268
0	-1	1	-2	1	-2
75	67	217	169	315	266
75 0	67 0	217 0	169 0	315 0	266 0

COMMENTS ON THE INCOME STATEMENT

July – September 2021

Based on the segment reporting, the Wästbygg Group reported strong figures. The strong order intake so far this year had an effect during Q3. Revenues amounted to SEK 822 million (773), and operating profit was SEK 74 million (67).

Profit after tax amounted to SEK 75 million (68), which corresponds to earnings per share of SEK 2.31 (2.95). The operating margin was 9.0 percent (8.7).

The new orders for Q3 amounted to SEK 703 million (900), with the main part attributable to the Commercial business area. However, a comparison with 2020 is not representative, since many orders were deferred from the second to the third quarter of last year due to the COVID-19 pandemic.

The order backlog was SEK 3,634 million (3,203) as of 30 September. This makes it roughly equivalent to the figure in the previous report and similar to the level for Q4 2019, i.e. before the pandemic.

January – September 2021

During the first three quarters, revenues amounted to SEK 2,547 million (2,798). Volumes were impacted by a decline in order intake during parts of 2020, and by the completion of several multi-year projects in spring 2021.

Despite reduced volumes, the operating profit was stronger than in 2020, amounting to SEK 207 million (177). This was due to improved profitability and a current increase in self-developed projects in Residential.

Profit after tax amounted to SEK 216 million (171), corresponding to earnings per share of SEK 6.68 (7.43).

The total of new orders was SEK 2,943 million (1,966).

October 2020 – September 2021

The increase in volumes during Q3 does not make up for the decline in revenues earlier in the year. Revenues for the rolling 12-month period amounted to SEK 3,550 million, compared to SEK 3,801 million for the full 2020 financial year. On the other hand, a 12 percent increase in operating profit was reported, where SEK 285 million was reported for the rolling 12-month period compared with SEK 254 million for the full 2020 financial year. There was an even larger difference in order intake, which amounted to SEK 4,209 million for the rolling 12-month period compared with SEK 3,232 million for the full 2020 financial year. This creates good prospects for continued positive development during both Q4 and 2022.

PERSONNEL

The strong order intake so far this year has resulted in a need to increase the number of employees. At the end of the period the group had 333 employees, compared with 311 at the start of the year. Throughout the COVID-19 pandemic, the group has worked with full staffing, and no redundancies or other reductions have been required.

NEW ORDERS AND ORDER BACKLOG, SEK million/quarter

CONSOLIDATED BALANCE SHEET – SEGMENT REPORT, SEK million	30 Sep 2021	30 Sep 2020	31 Dec 2020
ASSETS
Fixed assets
Intangible fixed assets
Goodwill	229	229	229
Other intangible fixed assets	9	7	8
Total	238	236	237
Tangible fixed assets
Investment properties	75	43	59
User rights assets	26	34	30
Inventory, tools and installations	4	6	6
Total	105	83	95
Financial fixed assets
Shares in joint ventures and associated companies	11	11	11
Deferred tax receivables	45	22	38
Non-current financial assets	0	0	0
Total	56	33	49
Total fixed assets	399	352	381
Current assets
Development properties, etc.	279	96	75
Accounts receivable	335	324	506
Accrued but not invoiced	347	375	282
Tax receivables	27	30	26
Receivables from group companies	12	12	12
Other receivables	952	445	797
Prepaid costs and accrued income	15	17	17
Cash and cash equivalents	770	76	776
Total current assets	2,737	1,375	2,491
TOTAL ASSETS	3,136	1,727	2,872

CONSOLIDATED BALANCE SHEET – SEGMENT REPORT, SEK million	30 Sep 2021	30 Sep 2020	31 Dec 2020
TOTAL EQUITY AND LIABILITIES
Equity
Share capital*	4	3	4
Other contributed capital	946	48	946
Retained earnings	590	466	431
This year's profit or loss	217	169	266
Total equity attributable to the company's shareholders	1,757	686	1,647
Holdings without controlling influence	4	3	3
Total equity	1,761	689	1,650
Non-current liabilities
Non-current interest-bearing liabilities
Liabilities to group companies	-	30	-
Liabilities to credit institutions	48	0	0
Debts user rights	12	20	16
Total	60	50	16
Non-current non-interest-bearing liabilities
Deferred tax liabilities	6	2	3
Other provisions	74	40	71
Total	80	42	74
Total non-current liabilities	140	92	90
Current liabilities
Current interest-bearing liabilities
Liabilities to credit institutions	1	15	0
Debts user rights	15	17	16
Other liabilities**	225	-	225
Total	241	32	241
Current non-interest-bearing liabilities
Accounts payable	288	328	244
Advance from customer	532	296	379
Tax liabilities	1	6	2
Other liabilities**	62	190	137
Accrued expenses and prepaid income	111	94	129
Total	994	914	891
Total current liabilities	1,235	946	1,132
TOTAL EQUITY AND LIABILITIES	3,136	1,727	2,872

INTEREST-BEARING NET CASH / NET DEBT

Interest-bearing assets	1,157	88	1,135
Interest-bearing liabilities	301	82	258
Interest-bearing net cash/net debt	856	6	877

* At the Annual General Meeting on March 23, 2020, it was decided to increase the number of shares in the company by dividing each share into 450 shares (share split 1: 450). Following the division of shares, the number of shares in the company has increased from 51,000 shares to 22,950,000 shares. It was decided to set up shares of two kinds; Class A shares and Class B shares. Class A shares entitle to ten votes each and Class B shares entitle to one vote each. The A and B shares have an equal right to profit and other value transfer. Registration at the Swedish Companies Registration Office was made on 8 April 2020.

** A reclassification has been made of Other liabilities, see accounting principles on page 22.

CHANGES IN THE GROUP'S EQUITY IN SUMMARY – SEGMENT REPORT, SEK million	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Equity attributable to the parent company's owners
Amount at the beginning of the period	1,647	592	686	592
New issue of shares	–	–	901	901
Transaction costs new issue of shares	–	–	-37	-37
Dividend	-107	-75	-107	-75
Comprehensive income for the period	217	169	315	266
Amount at the end of the period	1,757	686	1,757	1,647
Holdings without controlling influence
Amount at the beginning of the period	3	3	3	3
Total profit/loss for the period	0	0	0	0
Amount at the end of the period	4	3	4	3
TOTAL EQUITY	1,761	689	1,761	1,650

COMMENTS ON THE BALANCE SHEET AND EQUITY

The Wästbygg Group has a strong cash position resulting from the new share issue and listing on Nasdaq Stockholm in 2020, and has enjoyed a positive earnings trend for several years. In addition, the company has handed over five self-developed projects so far this year: two in Residential, one in Commercial and two in Logistics and Industry. However, the company is now entering another phase. Several new development projects have commenced, and investments have been made in land and building rights during the year.

Equity per share amounted to SEK 54.33 (29.87) at the end of the period.

The Group reported interest-bearing net cash of SEK 856 million (6) at the end of the period. The net cash amounted to SEK 877 million (129) on 1 January.

The Other receivables item includes an acquisition of building rights in Täby, the purchase consideration for a non-consolidated project property in Borås acquired at the start of the year, and claims related to unconsolidated project properties. The Development properties item includes a land acquisition of logistics and industrial land in Enköping for SEK 165 million, which was carried out during the second quarter.

The equity ratio at the end of the period was 56 percent (40). The Group's strong equity ratio is a result of the new share issue in 2020 as well as a positive earnings trend so far this year.

The Annual General Meeting of 6 May adopted a dividend of SEK 3.30 per share, SEK 107 million in total, which was paid out on 14 May.

GROUP CASH FLOW STATEMENT – SEGMENT REPORT, SEK million	Jul-Sep 2021	Jul-Sep 2020	Jan-Sep 2021	Jan-Sep 2020	Oct-Sep 2020-21	Jan-Dec 2020
Day-to-day operations
Profit/loss before financial items	74	67	207	177	285	254
Adjustment for items not included in cash flow	6	6	18	19	55	56
Received interest	9	4	14	9	17	12
Paid interest	-10	-1	-13	-6	-14	-7
Paid tax	-3	-5	-4	-15	-5	-16
Cash flow from operating activities before changes in working capital	76	71	222	184	338	299
Cash flow from changes in working capital
Increase (-)/decrease (+) of accounts receivable	93	48	174	44	-15	-144
Increase (-)/decrease (+) of other operating receivables	-282	-145	-417	-48	-655	-286
Increase (+)/decrease (-) of accounts payable	8	-40	44	-162	-39	-245
Increase (+)/decrease (-) of operating liabilities	-36	113	54	-17	352	281
Cash flow from the day-to-day operations	-141	47	77	1	-19	-95
Investment activities
Investments in businesses, including additional purchase sums	0	0	0	0	0	0
Acquisitions of intangible fixed assets	0	-1	-2	-2	-3	-3
Investments in investment properties	5	-21	-10	-40	-23	-53
Acquisitions of other tangible fixed assets	-3	-2	-10	-2	-12	-4
Cash flow from investing activities	2	-24	-22	-44	-38	-60
Financing activities
New issue of shares	–	–	–	–	901	901
Transaction costs new issue of shares	–	–	–	–	-37	-37
Paid dividend	–	–	-107	-75	-107	-75
Amortisation of loan liabilities	-2	-8	-4	-86	-53	-135
Raised loan liabilities	–	–	48	–	48	–
Change of overdraft facility	–	-8	–	–	–	–
Cash flow from financing activities	-2	-16	-63	-161	752	654
CASH FLOW FOR THE PERIOD	-141	7	-8	-204	695	499
Cash and cash equivalents at the start of the period	910	73	776	285	76	285
Exchange rate difference in cash and cash equivalents	1	-4	2	-5	-1	-8
Cash and cash equivalents at the end of the period	770	76	770	76	770	776

COMMENTS ON CASH FLOW

Variations in cash flow from one period to another are a natural consequence of the number of development projects in progress and the number of projects sold. A negative cash flow from current operations during certain periods is completely in line with the company's strategy to increase the proportion of development projects.

Total cash flow during Q3 amounted to SEK -141 million (7), divided into current operations SEK -141 million (47), investment operations SEK 2 million (-24) and financing operations SEK -2 million (-16).

Cash flow from current operations was affected by, among other things, an acquisition of building rights in Täby for SEK 310 million. Wästbygg assumed the building rights in August.

Total cash flow for the first three quarters amounted to SEK -8 million (-204), divided into current operations SEK 77 million (1), investment operations SEK -22 million (-44) and financing operations SEK -63 million (-161).

Five self-developed projects have been handed over so far this year, which has had a positive effect on cash flow from current operations. In addition to the acquisition of the building rights in Täby in Q3, cash flow was affected by a land acquisition in Enköping and a project property in Borås.

The company is in a period where cash has and will continue to be used for new development projects; see increase in self-developed tenant-ownership projects under production.

The cash flow from financing operations includes an adopted dividend of SEK 107 million.

CALENDAR

Year-end report 2021 11 February 2022
Annual report 2021 March 2022
Interim report January – March 5 May 2022
Annual General Meeting 5 May 2022

CONTACTS

For further information, please contact:

Jörgen Andersson, CEO Phone +46 703 23 32 02, email jorgen.andersson@wastbygg.se

Jonas Jönehall, CFO and Vice President Phone +46 739 20 19 01, email jonas.jonehall@wastbygg.se

Marie Lindebäck, Head of IR and Deputy Head of Sustainablity Phone +46 734 67 20 12, email marie.lindeback@wastbygg.se

Wästbygg Gruppen AB (publ) • Sofierogatan 3B • 412 51 Göteborg • Sweden Company registration number 556878-5538 Phone +46 31 733 23 00 www.wastbygg.se • info@wastbygg.se Registered Office: Gothenburg

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