Byggmax Group

Quarterly Report • Jul 16, 2021

INTERIM REPORT BYGGMAX GROUP JANUARY 1–JUNE 30, 2021

SUMMARY OF THE SECOND QUARTER OF 2021

• Net sales increased to SEK 2,833 M (2,499), representing a growth of 13.4 percent. Exchange rate effects had a positive impact on net sales of 0.7 percent.
• The Group's currency adjusted like-for-like sales increased by 8.6 percent.
• The gross margin was 33.2 percent (31.1).
• EBITA amounted to SEK 456 M (357), with an EBITA margin of 16.1 percent (14.3).
• EBIT amounted to SEK 446 M (347), with an EBIT margin of 15.8 percent (13.9).
• Net profit for the period amounted to SEK 348 M (268).
• Earnings per share totalled SEK 5.70 (4.39).
• Cash flow from operating activities amounts to SEK 821 M (1,254).
• Five (six) stores opened during the period.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• July 1, 2021, Byggmax Group signed an agreement to acquire the Norwegian Contera Group, owner of the retail concept Right Price Tiles. The transaction is subject to customary closing conditions and Norwegian competition authority approval.

Share of Byggmax Stores 3.0 Online share RTM Net sales RTM

KEY PERFORMANCE INDICATORS

	April–June		January–June		12 months	Full year
SEK M	2021	2020	2021	2020	July 2020– June 2021	2020
Net sales	2,833	2,499	3,944	3,378	7,367	6,801
Gross margin, %	33.2	31.1	33.4	31.5	33.5	32.6
EBITA	456	357	464	306	863	705
EBITA margin, %	16.1	14.3	11.8	9.0	11.7	10.4
EBIT	446	347	444	286	823	665
EBIT margin, %	15.8	13.9	11.3	8.5	11.2	9.8
Net profit/loss for the period	348	268	337	210	612	485
Earnings per share, SEK	5.70	4.39	5.53	3.44	10.03	7.95
Shareholder's equity per share, SEK	35.19	27.76	35.19	27.76	35.19	32.26
Cash flow from operating activities	821	1,254	1,153	1,474	874	1,197
Number of stores at the end of the period	180	167	180	167	180	169
Stores opened during the period	5	6	7	6	11	10

For more information, please contact:

Mattias Ankarberg, President, mattias.ankarberg@byggmax.se +46 76 11 90 985 Helena Nathhorst, CFO, helena.nathhorst@byggmax.se +46 76 11 90 040

RECORD RESULT AND STRONGER POSITION

The second quarter of the year was the best quarter in history. The discount trend is accelerating and we benefit from our leading low price position and continue to take market share. E-commerce continued to grow fast, and we entered an agreement to acquire the Norwegian discounter Right Price Tiles. Increased raw material prices have led to increased consumer prices, which also further increases the shift towards discount.

Sales increased 13 percent, despite exceptional comparables, driven by both a strong market and strong performing initiatives for organic growth. Byggmax branded e-commerce increased 35 percent and e-commerce accounted for 25 percent of the Group's sales. Sales was clearly positively impacted by increased price levels, while we simultaneously strengthened our low price position and have also this year received several recognitions for the markets' lowest prices.

Gross margin increased strongly. Product mix and pricing impacted positively. Consumer prices increased earlier than anticipated raw material costs, which had a positive impact for a period of time.

The second quarter resulted, despite exceptional comparables, in a record result and a stronger position with improved prospects.

Cost control remained solid, with increases mainly driven by new stores, the acquired Danish business and costs related to the Covid-19 pandemic. Covid-19 related disruptions and goods supply challenges were in all manageable. We continued to demonstrate a very strong ability to convert sales growth into additional profit. EBITA for the second quarter increased strongly to SEK 456 M (357 M).

CONTINUED STRONG MARKET

In the second quarter the market continued to be positively impacted by a "stay home" effect, and in addition by clearly higher prices. The role of the home also continued to increase, with increased housing transactions and a higher share of consumers anticipating working partly from home also after the pandemic. In all we estimate that the Nordic consumer market for building materials was largely unchanged in the second quarter, compared to last year's very high level during the first wave of the pandemic.

STRONG ORGANIC GROWTH INITIATIVES

Byggmax organic growth initiatives continued to perform strongly. Byggmax branded e-com increased 35 percent, despite exceptional comparables of 65 percent, and has more than doubled in two years. Combining e-commerce with Byggmax store network enables faster e-com growth, and the fastest growth came from collect@store although home delivery also grew fast. Byggmax garden offer continued to grow fast and helps us reach new customers. Garden sales for the second quarter has also doubled in two years.

We have continued to upgrade and expand our store portfolio. Store 3.0, a concept with a broader category offer and better customer experience that adds ca 6 percent sale per store, now accounts for half of the store portfolio (88 of 180 stores, 49%). Five new stores opened in the quarter, four in Sweden and one in Norway. One store was relocated.

Our entry into Denmark continued well. The acquired business Næstved Lavpristræ ("NLT") developed well and increased the share of goods received from Byggmax supply chain.

CONTINUED GROWTH FOR SKÅNSKA BYGGVAROR

Skånska Byggvaror continued strongly, benefitting from the leading online garden niche position and well performing growth initiatives. Sales increased 21 percent in the second quarter, order intake increased somewhat despite exceptional comparables, and profitability continued to increase.

ACQUISITION OF RIGHT PRICE TILES

The acquisition of Right Price Tiles, a Norwegian founder led discount concept focused on modern tiles and accessories at the best prices, was announced after the quarter. Right Price Tiles has 14 stores (of which two franchise) and a small fast growing e-com business in Norway. The offer is complemented by bathroom products and flooring. The acquired company has a long history of profitable organic growth, and in 2020 sales amounted to NOK 300m and EBITDA to 34m (excl. IFRS16 effects).

The acquisition gives us access to a leading private label product portfolio, that is largely complementary to our current offer, and deep tiles competence. We are now planning for further growth under the Byggmax brand. We aim to start by offering Right Price Tiles products through Byggmax e-commerce and selected stores, before adding tiles-focused concept stores outside Norway under the Byggmax brand.

The transaction is subject to approval by Norwegian competition authorities.

A STRONGER POSITION

At our capital markets day in March, we described our leading discount position and how discount wins market share across retail, our growth ambitions with a new sales goal of SEK 10 bn 2025, and the ongoing repositioning of Byggmax to a modern discount DIY concept with selected quality products at the best prices, modern stores close to the customers' homes, and a leading e-com offer.

Following a high activity level in the second quarter, we have now both confirmed and strengthened our ability for further growth. Byggmax organic growth initiatives with e-com, upgraded stores and new stores continued to perform strongly and increase our customer base. All initiatives have much more to give. The acquisition of Right Price Tiles creates further growth opportunities.

At the same time, the world around us is changing quickly, in a way that benefits Byggmax. E-com continues to grow. The role of the home is increasing when more people plan to work at least partly from home. We reiterate our view that the DIY market will be larger after the Covid-19 pandemic than before the pandemic, although not as large as during the pandemic. The shift to discount is further accelerating, as increased market prices and e-com results in more consumers comparing retailers' prices.

The second quarter resulted in both record results and an even stronger position with improved future prospects. We now continue together towards SEK 10 bn sales in 2025!

Mattias Ankarberg President

BYGGMAX IN BRIEF

MISSION AND BUSINESS CONCEPT

Our mission is simple. We sell building supplies and other related products to DIY enthusiasts at the lowest price.

Shopping at Byggmax should be quick, cheap, easy and friendly.

Our business concept is also simple: customers do part of the job and we promise low prices.

VISION

The Byggmax vision is to be the world's best DIY retailer. We are on your side! We promise the best prices and to always be the easiest and fairest to deal with.

LONG-TERM FINANCIAL TARGETS

To achieve net sales of at least SEK 10 billion in 2025.

Operating profit margin measured as EBITA margin of 7-8 percent.

Net debt / EBITDA (excl. IFRS16, EBITDA rolling 12 months) max 2.5x.

Byggmax to distribute at least 50 percent of profit for the period provided that net cash is sufficient to drive and develop operations.

Our goal is to reach a 70 percent reduction of CO2 relative to transported ton of goods per 2030 compared to 2010.

STRATEGIES FOR ACHIEVING THE TARGETS

Byggmax holds an attractive position in a good market and a number of unique strengths:

• Strong brand with a low-price position
• Unique store format based on self-service
• A strong e-commerce position
• Strong culture of cost awareness and entrepreneurship.

NET SALES AND EARNINGS GROUP

APRIL –JUNE 2021

NET SALES

The operation's net sales amounted to SEK 2,833 M (2,499), up 13.4 percent. Exchange rate effects had a positive impact on net sales of 0.7 percent. The Group's currency adjusted like-for-like sales increased by 8.6 percent.

The gross margin was 33.2 percent, compared with 31.1 percent in the corresponding quarter last year. The gross margin was impacted positively by product mix effects in both segments as well as increased consumer market prices. The prices have been affected by higher raw material costs.

EARNINGS

EBIT amounted to SEK 446 M (347), with an EBIT margin of 15.8 percent (13.9).

Personnel costs and other expenses increased SEK 48 M compared with the corresponding quarter last year. Costs for new stores amounted to SEK 24 (17) M. The comparable costs, i.e costs excluding new and acquired stores, increased SEK 24 M (-7). The comparable cost increase was mainly attributable to store operations, Covid-19 pandemic related costs and negative exchange rate effects. The cost control remained solid.

NET FINANCIAL ITEMS AND TAX

Mkr 2017

Net financial items amounted to SEK -11 M (-12). Net financial items for the quarter were impacted by exchange rate effects of SEK -4 M (-1).

The profit before tax amounted to SEK 435 M (334). Income tax for the period amounted to SEK -88 M (-67).

NET PROFIT

1. Nettoomsättning (R12)

Sid 4

Net profit for the period amounted to SEK 348 M (268). Earnings per share were 5.70 (4.39) SEK.

rgb gul 255/230/50 Mikro regular 6 pt Mellanrumsbredd 110%

Mkr Q4 Q3 Q2 Q1 Q4 Omsättning (R12) 1 222 2 200 2 499 879 950

6 801 6 528 6 141 5 441 5 277

2020 2019

JANUARY–JUNE 2021

NET SALES

The operation's net sales amounted to SEK 3,944 M (3,378), up 16.7 percent. Exchange rate effects had a positive impact on net sales of 0.4 percent. The Group's currency adjusted like-for-like sales increased by 11.4 percent.

The gross margin was 33.4 percent, compared with 31.5 percent in the corresponding period last year. The gross margin was impacted positively by product mix effects in both segments as well as increased consumer market prices.

EARNINGS

EBIT amounted to SEK 444 M (286), with an EBIT margin of 11.3 percent (8.5).

Personnel costs and other expenses increased SEK 78 M compared with the corresponding period last year. Costs for new and acquired stores amounted to SEK 45 M (29). The comparable costs, i.e costs excluding new and acquired stores, increased SEK 32 M (2). The comparable cost increase was mainly attributable to store operations and Covid-19 pandemic related costs.

NET FINANCIAL ITEMS AND TAX

Net financial items amounted to SEK -23 M (-29). Net financial items for the period were impacted by exchange rate effects of SEK -5 M (-4).

The profit before tax amounted to SEK 421 M (257). Income tax for the period amounted to SEK -84 M (-47).

NET PROFIT

Sid 4

KONCERNEN

Net profit for the period amounted to SEK 337 M (210). Earnings per share were 5.53 (3.44) SEK. 2. Resultat (EBITA R12) och EBITA-marginal

Mkr Q1 Q2 Q3 Q4 Q1 Q2 Nettoomsättning 783 1 776 1 813 950 665 1 731 EBITA -52 182 231 -42 -88 136 R12 - Omsättning 5 321 5 204 5 159 R12 - EBITA 319 283 237 EBITA-marginal 6% 5% 5%

2017 2018

2019 2020 2021

EARNINGS AND MARGINS KF från löpande -69 645 -13 -261 -70 646 KF löp R12m 302 301 302

CASH FLOW

Cash flow from the operating activities amounted to SEK 821 M for the quarter, decreased SEK 433 M compared with the corresponding period last year. The change was primarily due to decreased accounts payables.

Cash flow from the operating activities amounted to SEK 1,153 M for the period, decreased SEK 321 M compared with the corresponding period last year.

At the end of the period inventory amounted to SEK 1,354 M (1,146) of which Skånska Byggvaror's inventory represents SEK 103 M (69). Compared with end of the corresponding period 2020, two Byggmax stores were closed, eleven new stores were opened and four acquired, the associated inventory amounted to SEK 88 M.

Dividend to shareholders affected the cash flow by SEK 168 M.

INVESTMENTS

Investments in fixed assets for the quarter amounted to SEK 52 M (51). Investments are primarily related to increased activity in IT-investments and upgrades to store 3.0 concept SEK 9 M, and SEK 25 M (24) was attributed to investments in stores opened.

Investments in fixed assets for the period amounted to SEK 116 M (79). Investments are primarily related to increased activity in IT-investments and upgrades to store 3.0 concept SEK 42 M, and SEK 35 M (38) was attributed to investments in stores opened.

ACQUISITION OF SUBSIDIARY

1. Kassaflöde löpande verksamheten, kvartal

Sid 5

KONCERNEN

KF löp R12m

Næstved Lavpris Træ was acquired with access January 1, 2021. The acquisition includes 100% of the shares. The acquisition price is set to a maximum of SEK 58 M, of which SEK 31 M in initial consideration and the remainder based on performance in 2021 and 2022.

Acquired net assets amounts to SEK 20 M. Goodwill resulted from the acquisition to an amount of SEK 38 M. The acquisition analysis is subject to a final adjustment one year after the date of acquisition.

Mkr Q1 Q2 Q3 KF från löpande -69 645 -13

CASH FLOW FROM OPERATING ACTIVITIES,

2017

LIQUIDITY AND FINANCIAL POSITION

Consolidated net debt was SEK 1,100 M (1,292). The net cash excluding the effects of IFRS 16 amounted to SEK 200 (47). The equity/assets ratio amounted to 38.4 percent (31.4). Unutilized credit facilities totalled SEK 1 320 M (1,190).

GOODWILL AND OTHER INTANGIBLE FIXED ASSETS

The Group's carrying amounts from intangible fixed assets amounted to SEK 2,090 M (2,093). The Group's goodwill amounted to SEK 1,847 M (1,808), the increase of SEK 38 M refers to the acquisition of Næstved Lavpris Træ. Other intangible fixed assets amounted to SEK 243 M (284) and primarily pertained to software, customer relationships and brands. Amortization of Skånska Byggvaror customer relationships and brands amounts to SEK -10 M (-10) for the quarter. Amortization of Skånska Byggvaror customer relationships and brands amounts to SEK -20 M (-20) for the frist six months.

SHAREHOLDERS' EQUITY

1. Kassaflöde löpande verksamheten, 12

KONCERNEN

Consolidated shareholders' equity amounted to SEK 2,147 M (1,693), which corresponds to SEK 35.19 (27.76) per share outstanding. As of June 30, 2021 there are warrant programs outstanding encompassing 1,310,000 shares.

KF från löpande -69 645 -13 -261 -70 646 CASH FLOW FROM OPERATING ACTIVITIES,

2017 2018 Mkr Q1 Q2 Q3 Q4 Q1 Q2

PERFORMANCE BY BUSINESS SEGMENT

SUMMARY

	April–June		January–June		12 months	Full year
SEK M	2021	2020	2021	2020	July 2020– June 2021	2020
Net sales
Byggmax	2,528	2,254	3,527	3,067	6,618	6,158
Skånska Byggvaror	309	255	424	323	766	665
Other	-4	-10	-7	-12	-18	-23
Total net sales	2,833	2,499	3,944	3,378	7,367	6,801
EBITDA
Byggmax	430	348	471	349	897	775
Skånska Byggvaror	62	41	61	20	99	58
Other	-7	-3	-10	-5	-17	-11
Total EBITDA	486	386	522	364	980	822
EBITDA margin, %
Byggmax	17.0	15.4	13.4	11.4	13.6	12.6
Skånska Byggvaror	20.2	16.1	14.4	6.3	13.0	8.7
Total EBITDA margin	17.1	15.4	13.2	10.8	13.3	12.1

BUSINESS SEGMENTS

The Byggmax Group comprises two segments: Byggmax, Skånska Byggvaror and Other. The Byggmax segment includes Byggmax AB, including its subsidiaries in Norway and Finland, Buildor AB, Svea Distribution AB as well as Byggmax Denmark ApS and Næstved Lavpris-Træ A/S which are new for quarter 1, 2021. Buildor's results are monitored as a part of Byggmax segment due to functions such as sourcing and development of the e-commerce platform are shared. Svea Distribution is a wholly-owned subsidiary that primarily delivers to Byggmax.

Skånska Byggvaror AB was acquired in January 2016 and remains its own segment.

Other includes Group internal leasing, the parent company and eliminations between segments. No individual part of other represents such a material part that it forms its own reportable segment.

IFRS 16 is not applied in the segment report, the segments are otherwise recognized in accordance with the same accounting policies as the Group. The difference between the sum of the segments' EBITDA and the Groups' profit before tax was attributed to IFRS 16 for the quarter was SEK 86 M (78), depreciation and amortization of tangible and intangible fixed assets amounted to SEK -125 M (-117) and a net financial expense of SEK -11 M (-12). The difference between the sum of the segments' EBITDA and the Groups' profit before tax was attributed to IFRS 16 for the first six months was SEK 168 M (155), depreciation and amortization of tangible and intangible fixed assets amounted to SEK -246 M (-232) and a net financial expense of SEK -23 M (-29), see note 1.

No changes have occurred to the division of segments or calculation or the segments' results since the most recently released annual report.

Nor has there occurred any substantial changes concerning the segments' assets compared with the information in the most recent annual report.

SEASONAL VARIATIONS

The second and third quarter have historically reported the highest net sales and the highest EBIT. Cash flow from operating activities is impacted by an accumulation of inventory during the first quarter before the increased sales of the second quarter.

SEGMENT BYGGMAX

Byggmax is targeting private consumers and offers a carefully selected assortment for the most common DIY projects. We would like everyone to have the right to a fantastic home, and our business model is to sell the most important DIY products at the lowest possible price, with a good customer experience. Byggmax offers a carefully selected range of products in stores near customers' homes and a much broader range online. Byggmax has operations in Sweden, Norway, Finland and Denmark.

NET SALES AND EARNINGS APRIL–JUNE

Net sales increased 12.2 percent in the second quarter to SEK 2,528 M (2,254). The development is attributable to a continued strong market and increased consumer market prices.

Five (six) new stores were opened during the quarter, Leksand, Finspång, Borgholm and Alingsås in Sweden and Porsgrunn in Norway. Trollhättan in Sweden were relocaded. The following additional Byggmax stores have been announced to be opened in 2021: Lindesberg, Höganäs and Tullinge in Sweden. We have also announced that the store in Örebro will be relocated in 2021. The total amount of Byggmax stores at the end of the period is 180. The number of 3.0 stores at the end of the period amounted to a total of 88 stores, corresponding to 49 percent of our store portfolio.

Byggmax accounted for 89.2 percent of the Group's net sales.

EBITDA for the second quarter amounted to SEK 430 M (348). EBITDA margin for the quarter was 17.0 percent (15.4). The development is attributable to an improved gross margin due to positive priceeffects and productmix in combination with a remained good cost control.

EBITDA for the quarter was impacted by costs for new and acquired stores that amounted to SEK 24 M (17). 5. Omsättning Byggmax (R12) och EBITDA-marginal

Mkr Q1 Q2 Q3 Q4 Q1 Omsättning 678 1 516 1 586 833 598 EBITDA -3 181 254 39 -33 Oms - R12m 4 612 4 532 EBITDA - R12m 472 442

2017 2018

NET SALES AND EARNINGS JANUARY–JUNE

Net sales increased 15.0 percent in the period to SEK 3,527 M (3,067). Sales growth was driven by a strong market and by organic growth initiatives.

Seven (six) new stores was opened during the period. Four new stores was added in relation to the acquisition of Næstved Lavpris Træ. Byggmax has 121 stores in Sweden, 45 in Norway, 10 in Finland and 4 in Denmark; a total of 180 stores.

In the first six months Byggmax accounted for 89.4 percent of the Group's net sales.

EBITDA for the first six months amounted to SEK 471 M (349). EBITDA margin for the period was 13.4 percent (11.4). The development is attributable to a strong market, an increased gross margin in combination with a remained good cost control.

EBITDA for the period was impacted by costs for new and acquired stores that amounted to SEK 45 M (29).

NET SALES AND EBITDA MARGIN EBITDA-marginal 10,2% 9,7%

BYGGMAX

	April–June		January–June	12 months
SEK M	2021	2020	2021	2020	July 2020 June 2021
Net sales	2,528	2,254	3,527	3,067	6,618
Share of the Group's net sales, %	89.2	90.2	89.4	90.8	89.8
EBITDA	430	348	471	349	897
EBITDA margin, %	17.0	15.4	13.4	11.4	13.6
Number of stores	180	167	180	167	180

SEGMENT SKÅNSKA BYGGVAROR

Skånska Byggvaror is a leading e-commerce company selling products for the home and the garden, within categories as conservatories, greenhouses, bathroom, windows and doors. Products offered are from carefully selected suppliers and own brands. Skånska Byggvaror has operations in Sweden, Norway and Finland. Sales are primarily conducted online. In Sweden and Norway, e-commerce is combined with showrooms.

NET SALES AND EARNINGS APRIL–JUNE

Net sales increased 21.2 percent in the second quarter to SEK 309 M (255). Sales in proprietary products continued to grow. The order intake during the quarter developed in line with the corresponding quarter 2020.

Skånska Byggvaror represents 10.8 percent of the Group's net sales for the quarter. Skånska Byggvaror has 11 (11) showrooms.

EBITDA amounted to SEK 62 M (41) in the quarter, corresponding to an EBITDA margin for the quarter of 20.2 percent (16,1). The development is attributable to the improved sales growth, product mix effects in combination with continued good cost control.

NET SALES AND EARNINGS JANUARY–JUNE

Net sales increased 31.4 percent in the period to SEK 424 M (323). Skånska Byggvaror benefits from its leading online garden niche position and well performing growth initiatives. The order intake during the period developed well and profitability continued to improve.

Skånska Byggvaror represents 10.6 percent of the Group's net sales for the period. Skånska Byggvaror has 11 (11) showrooms, seven in Sweden and four in Norway.

EBITDA amounted to SEK 61 M (20) in the first six months, corresponding to an EBITDA margin for the period of 14.4 percent (6,3). The development is attributable to the improved sales growth, product mix effects in combination with continued good cost control.

Serie1 Serie2

2018 2019 2020

SKBV Q1:17 Q2:17 Q3:17 Omsättning 105 260 227 EBITDA -19 31 7

2017

1. Omsättning Skånska Byggvaror (R12) och EBITDA-marginal

Oms - R12m

SKÅNSKA BYGGVAROR

	April–June		January–June	12 months
SEK M	2021	2020	2021	2020	July 2020 June 2021
Net sales	309	255	424	323	766
Share of the Group's
net sales, %	10.8	9.8	10.6	9.6	10.2
EBITDA	62	41	61	20	99
EBITDA margin, %	20.2	16.1	14.4	6.3	13.0

OTHER

ACCOUNTING POLICIES

Byggmax Group applies the International Financial Reporting Standards (IFRS) as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The application of the accounting policies corresponds with the policies in the Annual Report for the fiscal year ending December 31, 2020.

The Parent Company's accounts have been prepared pursuant to the Annual Accounts Act and RFR 2 Accounting for Legal Entities. The same accounting policies have been applied as for the Group except in those cases stated in the Parent Company's accounting policies section in the 2020 Annual Report, Note 2.18.

Refer to the Annual Report for the 2020 fiscal year, notes 1–4, for a more detailed description of the accounting policies applied for the Group and the Parent Company in this interim report.

TRANSACTIONS WITH RELATED PARTIES

No transactions occurred between Byggmax and related parties that could significantly impact the company's position and results.

The 2019 AGMs and the 2021 AGMs resolved to introduce warrant programs for senior executives and other key staff at Byggmax. The warrants are priced at market value, which is based on a valuation made by an independent party. Each warrant entitles its holder to subscribe for one share in the company. The participants of the warrants program have entered into a pre-emption agreement.

The 2019 warrant program comprising 830,000 warrants expires on December 9, 2024 and can be exercised at a subscription price of SEK 47.40 from June 10, 2024.

The 2021 warrant program comprising 480,000 warrants expires on December 14, 2026 and can be exercised at a subscription price of SEK 91.20 from June 15, 2026.

PARENT COMPANY

The Parent Company constitutes a holding company. The Parent Company's net sales during the second quarter amounted to SEK 0 M (0). The profit after financial items was SEK -9 M (-8) for the quarter.

EMPLOYEES

The number of employees, (converted into full-time equivalents) totalled 1,438 (1,328) at the end of the period.

SIGNIFICANT RISKS AND FACTORS OF UNCERTAINTY

The Byggmax Group conducts business activities in the Swedish, Norwegian, Finnish and Danish DIY markets. In the short-term, the market is heavily impacted by weather related effects, as these comprise the prerequisites for consumers to wish to carry out outdoor projects.

The Byggmax Group's significant risks and uncertainty factors are described in the 2020 Annual Report.

Just as other companies, Byggmax is faced with the challenge posed by the Covid-19 pandemic. The Byggmax Group is actively working on an ongoing basis to minimize the disruptions entailed by the situation, and implementing precautionary measures to be able to manage various future scenarios. The outbreak of the Covid-19 virus has had a positive impact on the Byggmax Group to date. However, with the current macro environment, uncertainty pertaining to any forthcoming effects arising from the spread of the virus remains and it is not possible at present to forecast the final impact that this may have for the Group.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

July 1, 2021, Byggmax Group signed an agreement to acquire the Norwegian Contera Group, owner of the retail concept Right Price Tiles with 14 stores (of which two franchise), e-commerce business in Norway and a direct importer of tiles and related products. For the financial year 2020, sales amounted to NOK 300m. The transaction is subject to customary closing conditions and Norwegian competition authority approval. The acquired business will be reported as part of the Byggmax segment.

This interim report has not been reviewed by the company's auditors.

Stockholm July 15, 2021 The Board of Directors

FINANCIAL CALENDAR 2021/2022

19 October 2021 Interim report quarter 3

January 26, 2022 Year-end report The Board of Directors and the President certify that the six-month report provides an accurate overview of the Group's and Parent Company's operations, position and performance, as well as describing significant risks and instability factors faced by the Parent Company and companies in the Group.

Stockholm, July 15, 2021

Chairman of the Board Board member

ANDERS MOBERG ANDRÉAS ELGAARD

KJERSTI HOBØL CATARINA FAGERHOLM Board member Board member

LARS LJUNGÄLV DANIEL MÜHLBACH Board member Board member

GUNILLA SPONGH MATTIAS ANKARBERG Board member President

CONSOLIDATED INCOME STATEMENT GROUP

	April–June			January–June	12 months	Full year
SEK M	2021	2020	2021	2020	July 2020– June 2021	2020
Revenue
Net sales	2,833	2,499	3,944	3,378	7,367	6,801
Other operating income	1	11	9	14	21	26
Total revenue	2,834	2,510	3,953	3,392	7,388	6,827
Operating expenses
Cost of goods sold	1,892	-1,723	-2,626	-2,314	-4,896	-4,584
Other external costs	-141	-114	-246	-209	-437	-400
Personnel costs	-230	-210	-391	-351	-748	-707
Amortization and impairment of intangible fixed assets	-16	-16	-31	-32	-64	-64
Depreciation of tangible fixed assets1	-109	-101	-215	-201	-421	-406
Total operating expenses	-2,388	-2,163	-3,509	-3,106	-6,565	-6,162
EBIT	446	347	444	286	823	665
Net financial items1	-11	-12	-23	-29	-36	-42
Profit/loss before taxes	435	334	421	257	787	623
Income tax	-88	-67	-84	-47	-175	-139
Net Profit/loss for the period	348	268	337	210	612	485
Attributable to:
Parent Company shareholders	348	268	337	210	612	485
Earnings per share before dilution, SEK	5.70	4.39	5.53	3.44	10.03	7.95
Earnings per share after dilution, SEK	5.68	4.39	5.50	3.44	9.98	7.95
Average number of shares outstanding at end of period, thousand	60,999	60,999	60,999	60,999	60,999	60,999

1) During the quarter, other external costs decreased SEK 86 M (78), depreciation on tangible fixed assets increased SEK 80 M (74) and financial expenses increased SEK 7 M (8) due to IFRS 16 Leases. During the first six months, other external costs decreased SEK 168 M (155), depreciation on tangible fixed assets increased SEK 157 M (145) and financial expenses increased SEK 14 M (16) due to IFRS 16 Leases.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME GROUP

		April–June		January–June	12 months	Full year
SEK M	2021	2020	2021	2020	July 2020– June 2021	2020
Net Profit/loss for the period Items that will not be reclassified to profit or loss	348	268	337	210	612	485
Translation exchange rate differences	-8	-2	7	-17	-9	-18
Other comprehensive income for the period	340	266	344	192	603	467

GROUP CONSOLIDATED BALANCE SHEET

SEK M	June 30 2021	June 30 2020	December 31 2020
Assets
Intangible fixed assets	2,090	2,093	2,072
Tangible fixed assets1	1,799	1,768	1,667
Financial fixed assets	15	14	14
Total fixed assets	3,903	3,875	3,754
Inventories	1,354	1,146	967
Current receivables	131	197	150
Cash and cash equivalents	200	178	62
Total current assets	1,685	1,522	1,179
Total assets	5,588	5,396	4,933
Shareholders' equity and liabilities
Shareholders' equity	2,147	1,693	1,968
Borrowing from credit institutions	-	-	-
Lease liabilities	964	1,020	916
Deferred tax liabilities	178	172	183
Long-term liabilities	7	1	1
Total long-term liabilities	1,150	1,193	1,100
Borrowing from credit institutions	0	131	529
Lease liabilities	336	318	294
Accounts payable	1,348	1,628	687
Other current liabilities	607	432	355
Total current liabilities	2,291	2,511	1,865
Total shareholders' equity and liabilities	5,588	5,396	4,933

1) Tangible fixed assets includes SEK 1,315 M (1,357) IFRS16 Leases.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY GROUP

SEK M	June 30 2021	June 30 2020	December 31 2020
Opening balance at the beginning of the period	1,968	1,501	1,501
Comprehensive income
Translation differences	7	-17	-18
Profit/loss for the period	337	210	485
Total comprehensive income	344	193	467
Transactions with shareholders
Dividend	-168	-	-
Warrants and new share issue	3	0	0
Total transactions with shareholders	-165	0	0
Shareholders' equity at the end of the period	2,147	1,693	1,968

CONSOLIDATED CASH FLOW STATEMENTS GROUP

		April–June January–June		12 months	Full year
SEK M	2021	2020	2021	2020	July 2020– June 2021	2020
Cash flow from operating activities
EBIT	446	347	444	286	823	665
Non-cash items
Depreciation, amortization and impairment of tangible and intangible fixed assets1	125	119	246	235	486	475
Other non-cash items	5	-3	9	-12	15	-6
Financial items	-14	-12	-24	-29	-37	-42
Tax paid	-24	-28	-46	-48	-59	-61
Cash flow from operating activities before changes in working capital	539	422	630	432	1,229	1,031
Change in inventories	-100	-121	-355	-248	-134	-47
Change in other current receivables	-36	-15	28	-28	10	-46
Change in other current liabilities	418	969	828	1,318	-231	259
Cash flow from operating activities	821	1,254	1,153	1,474	874	1,197
Cash flow from investing activities
Investment in intangible fixed assets	-5	-6	-10	-13	-24	-27
Investment in tangible fixed assets	-47	-45	-106	-66	-185	-146
Investment in financial fixed assets	-	-	-	-	-	-
Investment in subsidiaries	-	-	-51	-	-51	-
Sale of tangible fixed assets	1	0	3	0	3	1
Amortization of short term loans	0	-	0	-	2	2
Cash flow from investing activities	-51	-51	-165	-79	-255	-170
Cash flow from financing activities
Change in overdraft facilities	-388	-794	-529	-910	-131	-512
Repayment of lease liabilities	-79	-71	-154	-139	-299	-284
Amortization of loans	-	-200	-	-200	-	-200
Dividend to shareholders	-168	-	-168	-	-168	-
Cash flow from financing activities	-635	-1,065	-851	-1,249	-598	-996
Cash flow for the period	136	138	137	146	21	30
Cash and cash equivalents at the beginning of the period	69	40	62	32	178	32
Cash flow from the period	136	138	137	146	21	30
Exchange rate effect	-5	-	0	-	1	-
Cash and cash equivalents at the end of the period	200	178	200	178	200	62

1) During the quarter, "Other non-cash items" includes a positive effect of SEK 80 M (74) from depreciation of tangible fixed assets due to IFRS16 leases. During the first six months, "Other non-cash items" includes a positive effect of SEK 157 M (145) from depreciation of tangible fixed assets due to IFRS16 leases.

INCOME STATEMENT PARENT COMPANY

		April–June	January–June		12 months	Full year
SEK M	2021	2020	2021	2020	July 2020– June 2021	2020
Revenue	0	0	0	0	0	0
Other external costs	-7	-3	-10	-5	-16	-11
Personnel costs	0	0	0	0	-1	-1
Total operating expenses	-7	-4	-11	-6	-17	-12
EBIT	-7	-4	-10	-6	-16	-11
Net financial items	-2	-4	-4	-8	230	226
Profit/loss before tax	-9	-8	-14	-13	214	214
Income tax	2	2	3	3	-48	-48
Profit/loss for the period	-7	-6	-11	-11	166	166

BALANCE SHEET PARENT COMPANY

SEK M	June 30 2021	June 30 2020	December 31 2020
Assets
Financial fixed assets Current assets	1,631 5	1,573 1	1,573 238
Total assets	1,637	1,574	1,811
Shareholders' equity and liabilities
Shareholders' equity	231	232	409
Long-term liabilities	7	-	-
Current liabilities	1,399	1,342	1,402
Total shareholders' equity and liabilities	1,637	1,574	1,811

KEY PERFORMANCE INDICATORS BY QUARTER

GROUP

	2021 2020			2019
SEK M	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Net sales	2,833	1,111	1,222	2,200	2,499	879	950	1,813	1,799
Like-for-like sales, %	8.6	19.6	27.8	20.4	39.2	20.7	-8.7	0.6	-1.8
Gross margin, %	33.2	33.9	34.7	33.1	31.1	32.7	33.3	32.2	30.7
EBITA	456	7	65	335	357	-51	-6	220	133
EBITA margin, %	16.1	0.7	5.3	15.2	14.3	-5.8	-0.6	12.2	7.4
EBIT	446	-2	55	325	347	-61	-16	211	123
EBIT margin, %	15.8	-0.2	4.5	14.8	13.9	-7.0	-1.6	11.6	6.8
Profit/loss for the period	348	-11	25	250	268	-58	-20	156	87
Net debt	1,100	1,589	1,677	1,652	1 292 ,	2,367	2,585	2,229	2,010
Net debt excluding IFRS 16	-200	318	467	367	47 -	1,086	1,210	822	575
Cash flow from operating activities	821	332	34	311 -	1 254 ,	220	-309	-155	788
Shareholders' equity	2,147	1,972	1,968	1 939 ,	1 693 ,	1,428	1,500	1,526	1,369
Return on equity per quarter, %	16.2	-0.5	1.3	13.8	17.2	-4.3	-1.3	10.8	6.6
Equity/assets ratio, %	38.4	37.2	39.9	38.3	31.4	28.0	29.8	29.5	25.2
Average number of employees	1,438	1,121	1,138	1 406 ,	1 628 ,	974	992	1,266	1,211

BUSINESS SEGMENTS

	2021			2020			2019
SEK M	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Byggmax
Net sales	2,528	998	1,107	1,984	2,254	813	858	1,648	1,597
EBITDA	430	41	94	332	348	1	29	231	142
EBITDA margin, %	17.0	4.1	8.5	16.7	15.4	0.1	3.4	14.0	8.9
Skånska Byggvaror
Net sales	309	115	118	224	255	68	95	173	205
EBITDA	62	-1	4	33	41	-21	-2	21	23
EBITDA margin, %	20.2	-0.9	3.6	14.9	16.1	-30.5	-2.2	12.3	11.2

SHARE DATA	2021		2020				2019
	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
Average number of shares outstanding, thousand	60,999	60,999	60,999	60,999	60,999	60,999	60,999	60,999	60,999
Earnings per share for the period, SEK	5.70	-0.17	0.41	4.09	4.39	-0.95	-0.32	2.55	1.42
Equity per share, SEK	35.19	32.33	32.26	31.79	27.76	23.41	24.60	25.02	22.65
Cash flow from operating activities per share, SEK Share price at the end of the period, SEK	13.47 77.60	5.44 76.25	0.55 51.25	-5.10 52.80	20.56 43.86	3.61 23.46	-5.06 26.44	-2.55 29.40	12.92 37.06

NOTES

NOTE 1 SEGMENT'S STATEMENT

	Byggmax			Skånska Byggvaror	Other		IFRS 16		Total
	April–June		April–June		April–June		April–June		April–June
SEK M	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Total net sales	2,528	2,254	309	255	-4	-10	-	-	2,833	2,499
Net sales external	2,528	2,254	305	245	0	-	-	-	2,833	2,499
Transactions between segments	-	-	4	10	-4	-10	-	-	0	0
EBITDA	430	348	62	41	-7	-3	86	78	571	464
Depreciation of tangible and intangible fixed assets	-33	-32	-2	-2	0	0	-80	-74	-115	-107
EBITA	397	317	60	39	-7	-4	6	5	456	357
Amortization of intangible fixed assets related to acquired surplus values Net financial items	- -1	- 2	-10 -1	-10 -3	- -2	- -4	- -7	- -8	-10 -11	-10 -12
Profit/loss before tax	396	319	49	26	-9	-8	-1	-3	435	334
	Byggmax			Skånska Byggvaror	Other		IFRS 16
									Total
SEK M	January–June 2021	2020	2021	January–June 2020	January–June 2021	2020	January–June 2021	2020	January–June 2021	2020
Total net sales	3,527	3,067	424	323	-7	-12	-	-	3,944	3,378
Net sales external	3,527	3,067	418	312	0	-	-	-	3,944	3,378
Transctions between segments	-	-	7	12	-7	-12	-	-	0	0
EBITDA	471	349	61	20	-10	-5	168	155	690	518
Depreciation of tangible and intangible fixed assets	-66	-64	-4	-4	0	0	-157	-145	-227	-213
EBITA	406	285	57	16	-10	-6	11	10	464	306
Amortization of intangible fixed assets related to acquired surplus values	-	-	-20	-20	-	-	-	-	-20	-20
Net financial items	-2	-3	-3	-3	-4	-8	-14	-15	-23	-29
Profit/loss before tax	403	282	34	-6	-14	-14	-3	-5	421	257

REVENUE BY GEOGRAPHY		Sweden	Other Nordic		Total
	April–June		April–June		April–June
SEK M	2021	2020	2021	2020	2021	2020
Byggmax	1,864	1,713	664	541	2,528	2,254
Skånska Byggvaror	221	174	84	71	305	245
Total net sales	2,085	1,887	748	612	2,833	2,499

REVENUE BY GEOGRAPHY		Sweden	Other Nordic		Total
	January–June		January–June		January–June
SEK M	2021	2020	2021	2020	2021	2020
Byggmax	2,631	2,348	897	718	3,527	3,066
Skånska Byggvaror	303	227	113	85	416	312
Total net sales	2,932	2,575	1,010	803	3,944	3,378

ASSETS BY SEGMENT

JUNE 30	Byggmax		Skånska Byggvaror		Other		IFRS 16		Total
SEK M	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020
Assets by segment	4,284	3,950	970	949	-946	-827	1,279	1,324	5,588	5,396
– of which fixed assets	1,384	1,276	842	880	357	357	1,320	1,360	3,903	3,875

ALTERNATIVE PERFORMANCE MEASURES AND DEFINITIONS

USE OF ALTERNATIVE PERFORMANCE MEASURES

Byggmax has reviewed its terminology for alternative performance measures due to the guidelines from the European Securities and Markets Authority (ESMA). Byggmax Group uses the alternative performance measures EBITDA, EBITA, EBIT margin, return on equity, net debt and equity/assets ratio. The Group believes that these performance measures can be utilized by users of the financial statements as a supplement in assessing the

Return on equity

Earnings for the period in relation to average shareholders' equity.

Return on capital employed

EBIT in relation to equity plus net debt.

Gross margin

Net sales reduced by the cost of goods sold in relation to net sales.

EBITA

Earnings before amortization and impairment of intangible fixed assets related to acquired surplus values.

EBITA margin

EBITA in relation to net sales.

EBITDA

Earnings before depreciation, amortization and impairment of tangible and intangible fixed assets excluding IFRS 16.

EBITDA margin

EBITDA in relation to net sales.

Equity per share

Equity divided by the number of shares outstanding.

E-commerce

Net sales generated by online orders through Byggmax and Buildor, and all net sales for Skånska Byggvaror.

possibility of dividends, making strategic investments, evaluating profitability and assessing the Group's ability to meet its financial commitments. Byggmax reports alternative performance measures to describe the operations' underlying profitability and to improve comparability between reporting periods and industries.

Calculations of alternative performance measures can be found on www.byggmax.se under financial statistics (see link https://om.byggmax.se/en/investors/financial-statistics)

Like-for-like sales

Like-for-like sales pertains net sales to stores that have been trading for more than 12 months. Like-forlike sales is currency adjusted. All e-commerce is assessed as like-for-like.

Cash flow from operating activities per share

Cash flow from operating activities divided by the number of shares outstanding.

Net debt

Interest-bearing liabilities less cash and cash equivalents.

New stores

Stores that have been in operation less than 12 months.

Earnings per share

Earnings for the period divided by the average number of shares outstanding.

R12

Rolling twelve months.

EBIT margin

EBIT in relation to net sales.

Equity/assets ratio

Shareholders' equity in relation to total assets.

All amounts are stated in million Swedish kronor (SEK M) unless stated otherwise. Where the underlying amount is rounded to 0 it is noted as SEK 0 M. Rounding differences in tables of SEK +/-1 M may occur. Both Swedish and English versions of this report have been prepared. In the case of any discrepancy between the two, the Swedish take precedence.

This is information that Byggmax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and information that Byggmax Group AB (publ) is obliged to make public pursuant to the Securities Market Act. The information was submitted for publication on July 15, 2021 at 8 a.m.

Byggmax Group AB (publ)

Box 6063, SE-171 06 Solna Street address: Armégatan 38 Tel: +46 (0)8-514 930 60 E-post: info@byggmax.se

Corporate registration number: 556656-3531 Registered office: Solna

Background information about Byggmax and press images are available at www.byggmax.se