Bergman & Beving

Interim / Quarterly Report • Jul 14, 2021

Interim Report 1 April–30 June 2021

First quarter (1 April–30 June 2021)

• Revenue rose by 9 percent to MSEK 1,193 (1,097).
• EBITA increased by 22 percent to MSEK 78 (64) and the EBITA margin improved to 6.5 percent (5.8).
• Net profit rose by 20 percent to MSEK 48 (40) and earnings per share rose to SEK 1.80 (1.50).
• Magnus Söderlind started as President and CEO for Bergman & Beving AB on 1 May 2021.
• Two acquisitions were carried out, with total annual revenue of approximately MSEK 64.

		3 months	R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	∆ %	Jul 2020– Jun 2021	2020/2021
Revenue	1,193	1,097	9	4,407	4,311
EBITA	78	64	22	285	271
EBITA margin, percent	6.5	5.8		6.5	6.3
Profit after financial items	62	50	24	224	212
Net profit (after taxes)	48	40	20	174	166
Earnings per share before dilution, SEK	1.80	1.50		6.45	6.15
Earnings per share after dilution, SEK	1.80	1.50		6.45	6.15
P/WC, percent				21	20
Equity/assets ratio, percent				35	35
No. of employees at the end of the period	1,189	1,066	12	1,189	1,129

CEO's comments

The Group's positive performance continued during the first three months of the financial year. Revenue increased by 9 percent to MSEK 1,193, of which 4 percent was organic and 5 percent was from acquisitions. Operating profit (EBITA) increased by 22 percent to MSEK 78 (64) and the operating margin improved to 6.5 (5.8) percent. The most recent acquisitions have gone according to plan and made positive contributions to the results for the quarter.

Demand in our main markets was generally strong during the quarter. Several of our companies experienced longer lead times and disruptions in their supply chains, but without a significant impact on their deliveries or invoicing for the quarter. Many of our companies experienced price increases from their suppliers and took measures to offset these cost increases during the quarter. Overall, the effects on the Group's revenue and earnings are considered to be small. Instead, we see opportunities to strengthen our market shares and increase our value generation.

The ongoing pandemic has had a limited impact on our revenue and the recovery in demand from our industrial customers continued during the quarter, which generated significant improvements in earnings and the operating margin for the Tools & Consumables division. The Building Materials division also improved its earnings, primarily thanks to a favourable sales trend. Despite improved earnings in most of its units during the quarter, the Workplace Safety division posted lower earnings since its largest unit, Skydda, achieved lower revenue and earnings than in the same quarter last year which contained positive effects of the pandemic.

Demand in our main markets is expected to remain strong. Continued local pandemic restrictions along with disruptions in the supply chain and longer delivery times may have an effect on the business situation. There is continued potential for improvement in all divisions. One prioritised focus area is to increase our value generation in order to strengthen our margins. We will continue to improve our earnings through our decentralised governance model, maintaining clear objectives in each company while acquiring highly profitable operations with strong niche positions. All told, this gives me great hope for Bergman & Beving's future.

Stockholm, July 2021

Magnus Söderlind President & CEO

Profit and revenue

First quarter (April–June 2021)

Revenue increased by 9 percent to MSEK 1,193 (1,097). Revenue increased by 9 percent in local currency, of which 4 percent was organic and 5 percent was from acquisitions.

Demand from construction customers remained strong and demand from industrial customers recovered during the quarter. Increased sales to industrial customers counteracted somewhat lower sales of personal protective equipment compared with the previous year, which included temporary deliveries to the authorities. However, underlying demand for personal protective equipment

remained at a high level. Sales to new customers continued to increase and the margin was strengthened despite increased product expenses.

EBITA for the first quarter increased by 22 percent to MSEK 78 (64) and the EBITA margin improved to 6.5 percent (5.8).

Profit after financial items rose by 24 percent to MSEK 62 (50). Net profit rose by 20 percent to MSEK 48 (40) and earnings per share rose to SEK 1.80 (1.50).

Page 2 of 15

Performance by division

	3 months			R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	∆ %	Jul 2020– Jun 2021	2020/2021
Revenue
Building Materials	375	349	7	1,295	1,269
Workplace Safety	428	432	-1	1,585	1,589
Tools & Consumables	399	327	22	1,567	1,495
Group-wide/eliminations	-9	-11		-40	-42
Total revenue	1,193	1,097	9	4,407	4,311
EBITA
Building Materials	34	33	3	86	85
Workplace Safety	36	40	-10	133	137
Tools & Consumables	14	-7	n/a	78	57
Group-wide/eliminations	-6	-2		-12	-8
Total EBITA	78	64	22	285	271
EBITA margin, percent
Building Materials	9.1	9.5		6.6	6.7
Workplace Safety	8.4	9.3		8.4	8.6
Tools & Consumables	3.5	-2.1		5.0	3.8
Total EBITA margin	6.5	5.8		6.5	6.3

Building Materials

Building Materials' revenue increased by 7 percent to MSEK 375 (349) and EBITA rose by 3 percent to MSEK 34 (33).

The construction market remained strong in both Sweden and Norway. Sales and profitability increased in all companies, including the division's largest units ESSVE Construction, despite the negative effect of increased shipping costs.

Workplace Safety

Workplace Safety's revenue declined by 1 percent to MSEK 428 (432) and EBITA by 10 percent to MSEK 36 (40).

Demand for personal protective equipment was strong, although sales of protective equipment related to COVID-19 were not as high as in the year-earlier period. The gross margin improved, partly affected by a smaller share of deliveries of personal protective equipment related to COVID-19.

Tools & Consumables

Tools & Consumables' revenue rose by 22 percent to MSEK 399 (327) and EBITA totalled MSEK 14 (-7).

Demand recovered further during the quarter and by the end of the quarter was largely at the same level as before the COVID-19 pandemic. Luna increased its earnings as a result of increased sales due to both a recovery in the market and increased sales to new customers. The division's smaller companies did also continue to perform well.

Group-wide and eliminations

Group-wide expenses and eliminations for the first quarter amounted to MSEK 6 (2).

The Parent Company's revenue amounted to MSEK 8 (8) and profit after financial items amounted to MSEK 3 (5) for the period.

Employees

At the end of the period, the number of employees in the Group totalled 1,189, compared with 1,129 at the beginning of the financial year. During the period, 38 employees were gained via acquisitions.

Corporate acquisitions

On 1 April, Workplace Safety acquired all shares in the company group Abtech, consisting of Abtech Safety Ltd, Outreach Organisation Ltd and Outreach Rescue Medic Skills Ltd. Abtech is a leading supplier of personal fall protection and rescue equipment in the UK and also provides advanced training and courses for the industrial sector and rescue specialists. The company group generates annual revenue of approximately MSEK 44.

On 6 April, Tools & Consumables acquired all shares in H. M. Albretsen Verktøysikring AS. Albretsen develops and manufactures products and solutions in tool fall protection and generates annual revenue of approximately MSEK 20.

Bergman & Beving normally uses an acquisition model with a base consideration and a contingent consideration. The outcome of the contingent consideration depends on the future earnings of the acquired company.

The total purchase price allocation for the year's acquisitions:

Fair value of acquired assets and liabilities	MSEK
Customer relations, etc.	45
Other non-current assets	9
Other assets	27
Deferred tax liability, net	10
Current liabilities	11
Acquired net assets	60
Goodwill	26
Purchase consideration	86
Less: Purchase consideration, unpaid Less: Cash and cash equivalents in acquired	-6
companies	-8
Net change in cash and cash equivalents	-72

Acquisition-related transaction costs, which are recognised in other operating expenses in the income statement, amounted to MSEK 0. The unpaid purchase consideration is contingent and is estimated to amount to a maximum of MSEK 6.

Acquisition	Clos ing	Rev. MSEK*	No. of empl.*	Division
	Apr			Workplace
Abtech, UK	2021	44	34	Safety
Albretsen,	Apr			Tools &

Norway 2021 20 4 Consumables * Refers to the situation assessed on a full-year basis on the date of acquisition.

No acquisition analyses were considered finalised during the quarter. No considerations pertaining to previous years' acquisitions were paid.

Profitability, cash flow and financial position

Profitability, measured as the return on working capital (P/WC), increased to 21 percent, compared with 20 percent for full-year 2020/2021. The return on equity was 10 percent, compared with 10 percent for full-year 2020/2021.

Cash flow from operating activities for the quarter totalled MSEK 94 (133). Working capital increased during the quarter by MSEK 12. The Group's inventories decreased by MSEK 4, operating receivables decreased by MSEK 20, and operating liabilities decreased by MSEK 36.

Cash flow was charged with net investments in non-current assets in the amount of MSEK 13 (18) and MSEK 72 (4) pertaining to the acquisition of businesses. Investments in non-current assets consist primarily of IT systems.

The Group's operational net loan liability at the end of the period amounted to MSEK 732 (631), excluding pension obligations of MSEK 687 (727) and lease liabilities according to IFRS 16 of MSEK 384 (433). Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 778 (869).

The equity/assets ratio was 35 percent (35).

Equity per share before and after dilution increased to SEK 66.15, compared with SEK 64.40 at the beginning of the year.

The Swedish tax rate, which is also the Parent Company's tax rate, was 20.6 percent. The Group's weighted average tax rate, with its current geographic mix, was approximately 22 percent.

Share structure and repurchase of shares

At the end of the period, share capital totalled MSEK 56.9 and was distributed by class of share as follows:

SHARE STRUCTURE

Class of share	No. of shares	No. of votes	% of capital	% of votes
Class A shares, 10 votes per share	1,062,436	10,624,360	3.9	28.7
Class B shares, 1 vote per share	26,373,980	26,373,980	96.1	71.3
Total number of shares before repurchasing	27,436,416	36,998,340	100.0	100.0
Of which, repurchased Class B shares	-929,677		3.4	2.5
Total number of shares after repurchasing	26,506,739

The share price as of 30 June 2021 was SEK 132.60. The average number of treasury shares was 929,677 during the period and 929,677 at the end of the period. The average purchase price for the repurchased shares was SEK 87.88 per share.

CALL OPTION PROGRAMMES

Outstanding programmes	No. of options	Corresponding no. of shares	% of total shares	Redemption price	Redemption period
Call option programme 2018/2022	210,000	210,000	0.8%	117.90	13 Sep 2021–10 Jun 2022
Call option programme 2019/2023	270,000	270,000	1.0%	107.50	12 Sep 2022–9 Jun 2023
Call option programme 2020/2024	244,000	244,000	0.9%	99.50	11 Sep 2023–7 Jun 2024

Call options issued for repurchased shares resulted in a slight dilution effect over the most recent 12-month period and the quarter.

During the quarter, the 2017/2021 call option programme expired. At the end of the programme, all options were repurchased at a price corresponding to the market value.

Events after the end of the period

No significant changes occurred after the end of the quarter.

Annual General Meeting

The Annual General Meeting (AGM) of Bergman & Beving AB will be held on Tuesday 31 August 2021, at 4:00 p.m. at the IVA Conference Centre in Stockholm, Grev Turegatan 16. The notice of the AGM will be published in July and will be available at www.bergmanbeving.com.

Stockholm, 14 July 2021

Magnus Söderlind President & CEO

This report has not been subject to special review by the Company's auditors.

Other information

Publication

This information is information that Bergman & Beving AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 7:45 a.m. CEST on 14 July 2021.

Dates for forthcoming financial information

The 2021 Annual General Meeting will be held at IVA, Grev Turegatan 16 in Stockholm on 31 August 2021 at 4:00 p.m. Interim Report 1 April–30 September 2021 will be published on 20 October 2021 at 7:45 a.m. Interim Report 1 April–31 December 2021 will be published on 9 February 2022 at 7:45 a.m. Financial Report 1 April 2021–31 March 2022 will be published on 13 May 2022 at 7:45 a.m.

Contact information

Magnus Söderlind, President & CEO, Tel: +46 10 454 77 00 Peter Schön, CFO, Tel: +46 70 339 89 99

Visit www.bergmanbeving.com to download reports, presentations and press releases.

Reporting by quarter

	2021/2022		2020/2021				2019/2020
MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue
Building Materials	375	364	261	295	349	318	237	288	300
Workplace Safety	428	383	418	356	432	403	350	305	343
Tools & Consumables	399	377	420	371	327	380	402	390	393
Group-wide/eliminations	-9	-9	-13	-9	-11	-11	-13	-13	-12
Total revenue	1,193	1,115	1,086	1,013	1,097	1,090	976	970	1,024
EBITA
Building Materials	34	25	6	21	33	16	-3	17	23
Workplace Safety	36	30	41	26	40	29	18	19	29
Tools & Consumables	14	21	23	20	-7	19	24	18	12
Group-wide/eliminations	-6	-3	-2	-1	-2	-7	-2	-1	-3
Total EBITA	78	73	68	66	64	57	37	53	61
EBITA margin, percent
Building Materials	9.1	6.9	2.3	7.1	9.5	5.0	-1.3	5.9	7.7
Workplace Safety	8.4	7.8	9.8	7.3	9.3	7.2	5.1	6.2	8.5
Tools & Consumables	3.5	5.6	5.5	5.4	-2.1	5.0	6.0	4.6	3.1
Total EBITA margin	6.5	6.5	6.3	6.5	5.8	5.2	3.8	5.5	6.0

Group summary

CONSOLIDATED INCOME STATEMEN

CONSOLIDATED INCOME STATEMENT	3 months		R12 months	Full-year
	Apr–Jun	Apr–Jun	Jul 2020–
MSEK	2021	2020	Jun 2021	2020/2021
Revenue	1,193	1,097	4,407	4,311
Other operating income	1	5	11	15
Total operating income	1,194	1,102	4,418	4,326
Cost of goods sold	-703	-681	-2,595	-2,573
Personnel costs	-219	-183	-809	-773
Depreciation, amortisation and impairment losses	-49	-44	-184	-179
Other operating expenses	-153	-136	-571	-554
Total operating expenses	-1,124	-1,044	-4,159	-4,079
Operating profit	70	58	259	247
Financial income and expenses	-8	-8	-35	-35
Profit after financial items	62	50	224	212
Taxes	-14	-10	-50	-46
Net profit	48	40	174	166
Of which, attributable to Parent Company shareholders	48	40	172	164
Of which, attributable to non-controlling interest	0	0	2	2
EBITA	78	64	285	271
Earnings per share before dilution, SEK	1.80	1.50	6.45	6.15
Earnings per share after dilution, SEK	1.80	1.50	6.45	6.15
Number of shares outstanding before dilution, '000	26,507	26,707	26,507	26,507
Weighted number of shares before dilution, '000	26,507	26,707	26,571	26,621
Weighted number of shares after dilution, '000	26,631	26,707	26,574	26,621

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	3 months		R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
Net profit	48	40	174	166
Remeasurement of defined-benefit pension plans	0	-36	31	-5
Tax attributable to components that will not be reclassified	0	7	-6	1
Components that will not be reclassified to net profit	0	-29	25	-4
Translation differences	-8	-24	-11	-27
Fair value changes for the year in cash-flow hedges	5	-4	0	-9
Tax attributable to components that will be reclassified	-1	1	0	2
Components that will be reclassified to net profit	-4	-27	-11	-34
Other comprehensive income	-4	-56	14	-38
Total comprehensive income for the period	44	-16	188	128
Of which, attributable to Parent Company shareholders	44	-16	186	126
Of which, attributable to non-controlling interest	0	0	2	2

CONSOLIDATED BALANCE SHEET

MSEK	30 June 2021	30 June 2020	31 March 2021
Assets
Goodwill	1,632	1,566	1,609
Other intangible non-current assets	461	385	425
Tangible non-current assets	111	101	102
Right-of-use assets	377	427	390
Financial non-current assets	5	3	5
Deferred tax assets	91	97	91
Inventories	1,131	1,006	1,129
Accounts receivable	913	837	950
Other current receivables	139	146	101
Cash and cash equivalents	148	111	139
Total assets	5,008	4,679	4,941
Equity and liabilities
Equity attributable to Parent Company shareholders	1,742	1,615	1,701
Non-controlling interest	15	13	14
Non-current interest-bearing liabilities	894	787	855
Provisions for pensions	687	727	692
Other non-current liabilities and provisions	135	142	136
Current interest-bearing liabilities	370	388	378
Accounts payable	555	486	609
Other current liabilities	610	521	556
Total equity and liabilities	5,008	4,679	4,941
Operational net loan liability	732	631	697

CONSOLIDATED STATEMENT OF EQUITY ATTRIBUTABLE TO PARENT COMPANY

SHAREHOLDERS

MSEK	30 June 2021	30 June 2020	31 March 2021
Opening equity	1,701	1,631	1,631
Dividend	–	–	-40
Exercise and purchase of options for repurchased shares	-3	–	1
Repurchase of own shares	–	–	-17
Total comprehensive income for the period	44	-16	126
Closing equity	1,742	1,615	1,701

CONSOLIDATED CASH-FLOW STATEMENT		3 months	12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
Operating activities before changes in working capital	106	106	393	393
Changes in working capital	-12	27	-49	-10
Cash flow from operating activities	94	133	344	383
Investments in intangible and tangible assets	-13	-18	-66	-71
Proceeds from sale of intangible and tangible assets	0	0	1	1
Acquisition of businesses	-72	-4	-180	-112
Divestment of businesses	–	–	5	5
Cash flow before financing	9	111	104	206
Financing activities	-1	-84	-64	-147
Cash flow for the period	8	27	40	59
Cash and cash equivalents at the beginning of the period	139	90	111	90
Cash flow for the period	8	27	40	59
Exchange-rate differences in cash and cash equivalents	1	-6	-3	-10
Cash and cash equivalents at the end of the period	148	111	148	139

Compilation of key financial ratios

KEY FINANCIAL RATIOS	R12 months
MSEK	30 June 2021	30 June 2020	31 March 2021
Revenue	4,407	4,133	4,311
EBITA	285	211	271
EBITA margin, percent	6.5	5.1	6.3
Operating profit	259	190	247
Operating margin, percent	5.9	4.6	5.7
Profit after financial items	224	156	212
Net profit	174	118	166
Profit margin, percent	5.1	3.8	4.9
Return on working capital (P/WC), percent	21	16	20
Return on capital employed, percent	7	6	7
Return on equity, percent	10	7	10
Operational net loan liability (closing balance)	732	631	697
Equity (closing balance)	1,757	1,628	1,715
Equity/assets ratio, percent	35	35	35
Number of employees at the end of the period	1,189	1,066	1,129
Key per-share data
Earnings, SEK	6.45	4.40	6.15
Earnings after dilution, SEK	6.45	4.40	6.15
Cash flow from operating activities, SEK	12.95	10.20	14.40
Equity, SEK	66.15	60.70	64.40
Share price, SEK	132.60	71.80	121.40

Parent Company summary

INCOME STATEMENT	3 months		R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
Revenue	8	8	32	32
Other operating income	–	–	0	0
Total operating income	8	8	32	32
Operating expenses	-16	-12	-47	-43
Operating loss	-8	-4	-15	-11
Financial income and expenses	11	9	39	37
Profit after financial items	3	5	24	26
Appropriations	–	–	-1	-1
Profit before taxes	3	5	23	25
Taxes	-1	-1	0	0
Net profit	2	4	23	25

STATEMENT OF COMPREHENSIVE INCOME	3 months		R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
Net profit	2	4	23	25
Fair value changes for the year in cash-flow hedges	5	-4	0	-9
Taxes attributable to other comprehensive income	-1	1	0	2
Components that will be reclassified to net profit	4	-3	0	-7
Other comprehensive income	4	-3	0	-7
Total comprehensive income for the period	6	1	23	18

BALANCE SHEET

MSEK	30 June 2021	30 June 2020	31 March 2021
Assets
Intangible non-current assets	0	0	0
Tangible non-current assets	2	3	2
Financial non-current assets	2,485	2,447	2,451
Current receivables	561	514	635
Cash and cash equivalents	0	0	0
Total assets	3,048	2,964	3,088
Equity, provisions and liabilities
Equity	1,218	1,254	1,215
Untaxed reserves	46	165	46
Provisions	36	38	36
Non-current liabilities	610	460	560
Current liabilities	1,138	1,047	1,231
Total equity, provisions and liabilities	3,048	2,964	3,088

Notes

1. Accounting policies

This Interim Report was prepared in accordance with IFRS and by applying IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and the Swedish Securities Market Act. The Interim Report for the Parent Company was prepared in accordance with the Swedish Annual Accounts Act and the Swedish Securities Market Act, which conforms to the provisions detailed in RFR 2 Accounting for Legal Entities.

The same accounting policies and bases of judgement have been applied in this Interim Report as in the Annual Report for 2020/2021. Disclosures are provided in the financial statements and accompanying notes as well as other sections of the interim report.

New or amended accounting standards which take effect in 2021 or later

A number of new and amended IFRS have not yet come into effect and have not been applied in advance in the preparation of this financial statement. The amended IFRS to be applied in the future are not expected to have any material impact on the Group's financial statements.

2. Revenue per geographic area

The Group primarily conducts operations in Sweden, Norway and Finland and revenue presented for the geographic markets is based on the domicile of the customers.

	3 months		R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
Sweden	484	475	1,789	1,780
Norway	311	272	1,178	1,139
Finland	108	109	417	418
Other countries	290	241	1,023	974
Revenue	1,193	1,097	4,407	4,311

3. Leases

Leases under IFRS 16 have the following effect on the consolidated balance sheet or income statement.

MSEK	30 June 2021	30 June 2020	31 March 2021
Right-of-use assets	377	427	390
Non-current lease liabilities	275	327	289
Current lease liabilities	109	106	108

	3 months		R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
Depreciation of right-of-use assets	-28	-30	-112	-114
Interest on lease liabilities	-2	-3	-8	-9

IFRS 16 will not affect operational follow-up or follow-up of earnings from the divisions.

4. Risks and uncertainties

Bergman & Beving regularly follows the developments of the ongoing pandemic and introduces measures to reduce the impact on the Group.

Other risks and uncertainties for the Group and the Parent Company remain unchanged. For information about these risks and uncertainties, refer to pages 50–53 of Bergman & Beving's Annual Report for 2020/2021.

5. Transactions with related parties

No transactions having a material impact on the Group's position or earnings occurred between Bergman & Beving and its related parties during the financial year.

6. Alternative performance measures

Bergman & Beving uses certain financial performance measures in its analysis of the operations and their performance that are not calculated in accordance with IFRS. The Company believes that these performance measures provide valuable information for investors, since they enable a more accurate assessment of current trends when combined with other key financial ratios calculated in accordance with IFRS. Since listed companies do not always calculate these performance measures ratios in the same way, there is no guarantee that the information is comparable with other companies' performance measures of the same name.

Change in revenue

Comparable units refer to sales in local currency from units that were part of the Group during the current period and the entire corresponding period in the preceding year.

	3 months
Percentage change in revenue for:	Apr–Jun 2021	Apr–Jun 2020
Comparable units in local currency	4	3
Currency effects	0	-3
Acquisitions/divestments	5	7
Total – change	9	7

EBITA

Operating profit for the period before impairment of goodwill and amortisation and impairment of other intangible assets in connection with corporate acquisitions and equivalent transactions.

	3 months		R12 months	Full-year
MSEK	Apr–Jun 2021	Apr–Jun 2020	Jul 2020– Jun 2021	2020/2021
EBITA	78	64	285	271
Depreciation and amortisation in connection with acquisitions	-8	-6	-26	-24
Operating profit	70	58	259	247

Return on working capital (P/WC)

Bergman & Beving's profitability target is for each unit in the Group to achieve profitability of at least 45 percent, measured as EBITA (P) for the rolling 12-month period as a percentage of average 12 months' working capital (WC), defined as inventories plus accounts receivable less accounts payable.

MSEK	Jul 2020– Jun 2021	2020/2021
EBITA (P)	285	271
Average working capital (WC)
Inventories	1,090	1,072
Accounts receivable	822	801
Accounts payable	-537	-528
Total – average WC	1,375	1,345
P/WC, percent	21	20

7. Other definitions

Return on equity

Net profit for the rolling 12-month period divided by average equity.

Return on capital employed

Profit after financial items plus financial expenses for the rolling 12-month period divided by the average balance-sheet total less non-interest-bearing liabilities.

EBITA margin

EBITA for the period as a percentage of revenue.

Equity per share

Equity divided by the weighted number of shares at the end of the period.

Cash flow per share

Cash flow for the rolling 12-month period from operating activities divided by the weighted number of shares.

Operational net loan liability

Interest-bearing liabilities excluding lease liabilities and provisions for pensions less cash and cash equivalents.

Earnings per share

Net profit attributable to the Parent Company shareholders divided by the weighted number of shares.

Operating margin

Operating profit for the period as a percentage of revenue.

Equity/assets ratio

Equity as a percentage of the balance-sheet total.

Profit margin

Net profit after financial items as a percentage of revenue.

Weighted number of shares

Average number of shares outstanding before or after dilution. Shares held by Bergman & Beving are not included in the number of shares outstanding. Dilution effects arise due to call options that can be settled using shares in share-based incentive programmes. The call options have a dilution effect when the average share price during the period is higher than the redemption price of the call options.

Bergman & Beving in brief

• We acquire and develop leading companies with niche products and brands within the manufacturing and construction sectors.
• Through our products, we are represented in over 4,000 sales outlets in more than 25 countries.
• Our main markets are Sweden, Norway and Finland, which account for approximately 75 percent of revenue.
• We aim to be a sustainable company where we actively work to create long-term value for society and our shareholders while limiting the impact of our operations on the environment.
• The subsidiaries in the Group are operated with decentralised business responsibility, with a focus on simplicity, responsibility and freedom.

Strategy

Bergman & Beving aims to be northern Europe's leading niche supplier of sustainable and value-creating products and services to the manufacturing and construction sectors.

The companies of Bergman & Beving are targeting to professional users and offering leading niche products and brands with potential for local and international growth.

Our companies work with both new innovations and continual improvements of existing offerings in order to best meet the needs of our ideal target groups and thereby strengthen their market position.

Each company conducts its operations under its own responsibility with a large degree of freedom, and we rely on our decentralised governance model, where each company develops, markets and sells their products and brands based on local conditions and as close to the customer as possible in the markets where they operate.

Our companies and product brands