Elanders

Quarterly Report • Apr 28, 2020

Elanders AB (publ) 2020-04-28

First quarter 2020

• Net sales were MSEK 2,572 (2,806), which was a reduction by eleven percent organically.
• Adjusted EBITA was MSEK 81 (113) and the adjusted EBITA margin was 3.1 (4.0) percent.
• The coronavirus had a very tangible negative effect on net sales and the result in the first quarter and is expected to have a considerably greater negative effect in the second quarter.
• The Group currently has a good liquidity buffer, both in the form of existing cash as well as unutilized credit lines, that amounts to more than SEK 1.2 billion.
• The result before tax was MSEK 28 (73).
• The net result was MSEK 15 (50) or SEK 0.43 (1.40) per share.
• Operating cash flow was MSEK 356 (390), of which acquisitions were MSEK 0 (-5).
• In light of the enhanced financial uncertainty due to the outbreak of the coronavirus, and as a precautionary measure, the Board considers it motivated to withdraw the dividend proposal. The Board will therefore instead propose that the Annual General Meeting on 25 June 2020 decide that no dividend be distributed.

Financial overview	First quarter		Last	Full year
	2020	2019	12 months	2019
Net sales, MSEK	2,572	2,806	11,020	11,254
EBITDA, MSEK	297	324	1,408	1,435
EBITA adjusted, MSEK 1) 2)	81	113	530	563
EBITA-margin adjusted, % 1)	3.1	4.0	4.8	5.0
EBITA, MSEK 2)	81	123	371	413
EBITA-margin, %	3.1	4.4	3.4	3.7
Result before tax, MSEK	28	73	171	216
Result after tax, MSEK	15	50	118	153
Earnings per share adjusted, SEK 1)	0.43	1.20	6.38	7.16
Earnings per share, SEK	0.43	1.40	3.23	4.19
Operating cash flow, MSEK	356	390	1,421	1,454
Net debt at the end of the period, MSEK	3,911	4,358	3,911	3,961
Net debt/EBITDA adjusted, ratio 1) 3)	3.29	3.36	2.78	2.76

1) One-off items have been excluded in the adjusted measures.

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

3) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12-month period).

COMMENTS FROM THE CEO

The first quarter was a challenging quarter in many ways with the spread of the coronavirus and the pandemic that followed. This affected all our operations to a different degree, but it hit Supply Chain Solutions the hardest where net sales dropped organically by 17 percent in the first quarter.

The first negative effects of the outbreak of the coronavirus were seen in our supply chain operations based in Asia. The Chinese New Year was extended and major disruptions occurred in the supply chains of our Electronics customers. Since the spread of the virus was for the most part contained in China, our operations there could recuperate relatively quickly and the end of the quarter was strong in terms of the result, despite a weak beginning. During the second half of the quarter our European supply chain operations were very negatively affected by lower demand from our customers in Automotive and Fashion & Lifestyle. Print & Packaging Solutions, however, managed rather well in the first quarter with twelve percent organic growth but it began feeling the effects of the coronavirus from the middle of March. A strong operative cash flow during the quarter led to a reduction in net debt, despite negative currency effects of more than MSEK 200. Reducing the amount of working capital tied up contributed positively to cash flow.

At the end of March and beginning of April, following orders by authorities, we had to close down a couple of our smaller production units in Italy and India. During the second quarter many of our facilities will be running at reduced capacity because our customers have shut down their production. To counteract the lower demand we have completely or partially furloughed around 2,000 employees and reduced the number of temporary hired personnel. We have also taken a number of measures to strengthen our liquidity such as delaying investments and minimizing costs for non-critical operations. We have also initiated discussions with our customers concerning different kinds of compensation.

We expect the coronavirus to have a considerably greater negative effect on the second quarter since a large part of our customers in Automotive will keep their production plants closed in April and there is a risk that when they do open up again they will start on a much lower production level and gradually ratchet it up over time. We presume demand will continue to be weak from Fashion & Lifestyle customers in Europe. Also Print & Packaging will be noticeably negatively impacted by the coronavirus in the second quarter since demand for manuals falls when our customers' facilities are closed. We will also see a general decline in printed marketing material since our customers have cut down on their marketing activities. On the other hand we anticipate a stable demand from our customer segment Electronics in both our Asiatic and European businesses. Behind the growing demand are all the students and employees working from home raising the need for laptops, monitors and computer accessories. This also increases the demand for server capacity and network equipment.

The second quarter will be a challenge and there will be a substantial drop in net sales in April. Most of our customers intend to start up production in the near future but at the same time the pandemic creates considerable uncertainty. Currently we have a relative large amount of cash that together with unutilized credit lines amounts to more than SEK 1.2 billion. This means we can handle a longer stop in production at our customers. Uncertainty going forward makes working to lower cost levels and being well prepared essential. At the same time it is important to be able to quickly return to full capacity when things turn around again.

Magnus Nilsson President and Chief Executive Officer

GROUP

Elanders is a global company with a broad range of services of integrated solutions in supply chain management. The business is run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has almost 7,000 employees and operates in some 20 countries on four continents. Our most important markets are China, Singapore, the United Kingdom, Sweden, Germany and the USA. Our major customers are active in the areas Automotive, Electronics, Fashion & Lifestyle, Industrial and Health Care & Life Science.

Adjusted Income Statements
	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Net sales	2,572	2,806	11,020	11,254
Operating expenses, adjusted	-2,275	-2,482	-9,612	-9,819
EBITDA adjusted	297	324	1,408	1,435
Depreciations and write-downs	-216	-211	-878	-872
EBITA adjusted	81	113	530	563
Amortization of assets identified in conjunction with
acquisitions	-13	-13	-54	-54
EBIT adjusted	67	100	476	508
Adjustment for errors in customer projects	-	10	-67	-58
Adjustment for restructuring program	-	-	-92	-92
EBIT	67	110	317	359
Net financial items	-39	-37	-146	-143
Result after financial items	28	73	171	216
Income tax	-13	-23	-53	-63
Result for the period	15	50	118	153
Adjustments as above	-	-10	159	150
Tax attributable to adjustments	-	3	-48	-45
Adjusted result for the period	15	43	230	258
Adjusted result for the period attributable to:
- parent company shareholders	15	42	226	253
- non-controlling interests	0	1	4	5
Adjusted earnings per share, SEK	0.43	1.20	6.38	7.16

Net sales and result

Net sales fell by eight percent to MSEK 2,572 (2,806) compared to the same period last year. Cleared of exchange rate fluctuations and effects of acquisitions and divestures of operations, net sales contracted by eleven percent. Net sales in business area Print & Packaging Solutions grew organically due to higher activity in the business with subscription boxes in the USA and further success in Germany. Supply Chain Solutions had negative organic growth of 17 percent which was in part due to lower demand from almost all customer segments and in part a conscious prioritization of more profitable business.

Adjusted EBITA, i.e. the operating result adjusted for amortization on assets identified in conjunction with acquisitions along with one-off items, contracted to MSEK 81 (113), which corresponded to an EBITA margin of 3.1 (4.0) percent. Print & Packaging Solutions and the Asian section of Supply Chain Solutions performed more or less on the same level as last year. The European section of Supply Chain Solutions had a more challenging second quarter. Less demand as a result of the coronavirus and customers closing their production plants due to component shortages led to a dramatically lower result.

Net financial items were negatively impacted by currency effects during the quarter since both the Euro and the US dollar grew significantly stronger against certain lesser currencies.

Supply Chain Solutions

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

	First quarter		Last	Full year
Supply Chain Solutions	2020	2019	12 months	2019
Net sales, MSEK	1,905	2,231	8,449	8,775
EBITDA adjusted, MSEK 1)	237	263	1,106	1,132
EBITA adjusted, MSEK 1) 2)	58	88	378	408
EBITA-margin adjusted, %	3.0	3.9	4.5	4.7
EBITA, MSEK 2)	58	98	225	265
EBITA-margin, %	3.0	4.4	2.7	3.0
Average number of employees	5,320	5,438	5,455	5,485

1) One-off items have been excluded in the adjusted measures.

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

The business area Supply Chain Solutions was the business area hit hardest by the coronavirus and it affected operations to a different degree at different points in time. The first half of the quarter it had a negative impact in Asia where, among other things, the Chinese New Year was extended and major disruptions occurred in the supply chains of our Electronics and Fashion & Lifestyle customers. It also created major disruptions in shipping and air freight. During the second half of the quarter the problems spread to Europe where countries closed their borders, component shortages occurred and quarantines and isolation were put into effect in several countries. That was when Automotive and Industrial began to feel the effects to a greater extent. Part of the problems for Fashion & Lifestyle continued since social distancing in Europe and the USA meant a dwindling number of people bought clothes in brick-and-mortar shops even though higher volumes in e-commerce compensated this to some extent.

Since the middle of March several customers in Automotive and Industrial have shut down production due to component shortages and disruptions in their supply chains. At the same time a large number of employees, both white and blue collar workers, have been furloughed. Elanders has taken similar measures in the Group where possible, and since the beginning of April 2020 close to 2,000 employees have been completely or partially furloughed.

Customer segment Electronics had a weak start with major disruptions in customers' supply chains but recuperated during the second half of the quarter in terms of the result. More and more people being ordered to work at home created a strong demand for laptops, computer accessories and network equipment.

Print & Packaging Solutions

Through its innovative force and global presence the business area Print & Packaging offers cost-effective solutions that can handle customers' local and global needs for printed material and packaging, often in combination with advanced order platforms on the Internet, value-added services and just-in-time deliveries.

	First quarter		Last	Full year
Print & Packaging Solutions	2020	2019	12 months	2019
Net sales, MSEK	686	599	2,651	2,564
EBITDA adjusted, MSEK 1)	68	69	334	335
EBITA adjusted, MSEK 1) 2)	32	33	187	188
EBITA-margin adjusted, %	4.6	5.5	7.0	7.3
EBITA, MSEK 2)	32	33	180	182
EBITA-margin, %	4.6	5.5	6.8	7.1
Average number of employees	1,206	1,206	1,201	1,201

1) One-off items have been excluded in the adjusted measures.

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

In Print & Packaging Solutions operations in Germany and the business with subscription boxes in the USA grew, resulting in the business area as a whole growing organically by twelve percent during the period. Other units experienced a slight decline in net sales.

Print & Packaging Solutions was relatively unaffected by the coronavirus outbreak until the middle of March when some customers in Automotive and Industrial shut down production. A slowdown in demand in even other customer segments became apparent at the end of the quarter.

Important events during the period

Coronavirus outbreak

The Coronavirus (COVID-19) has quickly spread during 2020 resulting in a significant number of infections. The measures taken by different governments to limit the spread of the virus has impacted financial activities and the Group's business in different ways:

• Many of the Group's customers have experienced major disruptions in their supply chains, which has affected their, and also our, business negatively. These disruptions have led to several customers in Automotive and Industrial shutting down production from the middle of March 2020 until further notice.
• Because of the measures taken by authorities the Group had to close down a couple of our smaller production units in Italy and India from the middle of March 2020.

The above has had a severe negative effect on Group earnings for the period and is expected to have an even greater negative impact during the second quarter when several of our largest customers' production is at a standstill. Several customers have, however, informed us that they intend start up production at the end of April 2020, although on a lower level than before the shutdown.

Governments in the countries where the Group is active have announced federal relief measures to lessen the effects of the coronavirus outbreak. Elanders is currently investigating to what extent we can apply for support. There is a great deal of uncertainty about how long the coronavirus outbreak will continue, which makes it difficult to forecast its exact effect on Group business during the rest of 2020.

Investments and depreciation

Net investments for the period amounted to MSEK 15 (28) and was mainly related to production equipment. Depreciation, amortization and write-downs amounted to MSEK 229 (224).

Financial position, cash flow and financing

Operating cash flow for the period amounted to MSEK 356 (390) and was partly helped by a reduced working capital.

Net debt decreased to MSEK 3,911 compared to MSEK 3,961 at the beginning of the year. The change includes an increase of MSEK 220 due to changes in exchange rates since a large part of loans and leasing liabilities are in euros and a lesser amount in US dollars, which have both strengthened against the Swedish krona. Leverage, i.e. net debt / adjusted EBITDA for a rolling 12 month period is now down to 2.8.

The Group today has a good liquidity buffer, both in the form of existing cash and unutilized credit facilities. Together, these amount to more than SEK 1.2 billion.

The Group's agreements with the main banks contain financial conditions that must be met to secure the financing. These consist, among other things, of investment levels and the net debt / EBITDA ratio. The calculations exclude IFRS 16 effects and certain one-off items. All financial conditions were met as of the balance sheet date.

Personnel

The average number of employees during the period was 6,537 (6,655), whereof 146 (149) in Sweden. At the end of the period the Group had 6,528 (6,788) employees, whereof 144 (148) in Sweden.

PARENT COMPANY

The parent company has provided intragroup services. The average number of employees during the period was 11 (11) and at the end of the period 11 (10).

OTHER INFORMATION

Elanders' offer

Elanders offers integrated and customized solutions for handling all or part of our customers' supply chain. The Group can take complete responsibility for complex and global deliveries that may include purchasing, storage, configuration, production and distribution. We also offer order management solutions, payment flows and aftermarket services for our customers.

The services are provided by business-minded employees who, with their expertise and aided by intelligent IT solutions, contribute to developing our customers' offers which are often totally dependent on efficient product, component and service flows as well as traceability and information. In addition to our offer to the B2B market the Group sells photo products directly to consumers via our own brands, fotokasten and myphotobook.

Goal and strategy

Elanders' overall goal is to be a leader in global solutions in supply chain management with a world class integrated offer. Our strategy is to work in niches in each business area where the company can attain a leading position in the market. We will achieve this goal by being best at meeting customers' demands for efficiency and delivery. Acquisitions play an important role in our company's development and provide competence, broader product and service offers and enlarge our customer base.

Risks and uncertainties

Elanders divides risks into circumstantial risk (the future of our products/services and business cycle sensitivity), financial risk (currency, interest, financing and credit risks) as well as business risk (customer concentration, operational risks, risks in operating expenses as well as contracts and disputes). These risks, together with a sensitivity analysis, are described in detail in the Annual Report 2019.

Quarterly report January – March 2020

Since the Annual Report was published the coronavirus outbreak and the measures taken by different governments to prevent it spreading affected Group business negatively during the latter part of the first quarter. In addition to the already known effects the virus outbreak has an impact on macro financial uncertainty and a decline in financial activity. The extent and duration of this pandemic is unknown but it is expected to further impact operations going forward.

Apart from this circumstances in the world around us since the Annual Report was published are not believed to have caused any significant risks or influenced the way in which the Group works with these compared to the description in the Annual Report 2019.

Seasonal variations

The Group's net sales, and thereby income, are affected by seasonal variations. Historically the fourth quarter has been somewhat stronger than the other quarters.

Transaction with related parties

The following significant transactions with related parties have occurred during the period:

• One of the members of the Board, Erik Gabrielson, is a partner in the law firm Vinge, which provides the company with legal services.
• Related parties to Peter Sommer, previously a member of Group Management and Managing Director of Elanders GmbH, own shares in a property where Elanders GmbH runs most of its operations.

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

Events after the balance sheet date

Besides what have been described in this report, no other major events have taken place between the balance sheet date and the date this report was signed.

Forecast

No forecast is given for 2020.

Accounting principles

The quarterly report for the Group has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and for the parent company in accordance with the Annual Accounts Act. The same accounting principles and calculation methods as those in the last Annual Report have been used.

Review by company auditors

The company auditors have not reviewed this report.

Nomination committee for the Annual General Meeting 2020

The nomination committee for the Annual General Meeting on 25 June 2020 is as follows:

Carl Bennet, Chair	Carl Bennet AB
Hans Hedström	Carnegie Funds
Carl Gustafsson	Didner & Gerge Funds
Fredrik Carlsson	Svolder
Sophie Nachemson-Ekwall	Representative from the smaller shareholders

Shareholders who would like to submit proposals to Elanders' 2020 Nomination Committee, can contact the Nomination Committee by e-mail at valberedning@elanders.com or by mail: Elanders AB, Att: Nomination Committee, Flöjelbergsgatan 1C, SE-431 35 Mölndal, Sweden.

Annual General Meeting 2020

Elanders AB's Annual General Meeting will be held on 25 June 2020. Location and exact time will be announced at a later date.

Financial calendar

Annual General Meeting 2020	25 June 2020
Q2 2020	15 July 2020
Q3 2020	22 October 2020
Q4 2020	28 January 2021

Conference call

In connection to the issuing of the Quarterly Report for the first quarter 2020 Elanders will hold a Press and Analysts conference call on 28 April 2020 at 15:00 CET, hosted by President and CEO Magnus Nilsson and CFO Andréas Wikner.

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

CLICK TO JOIN

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

Sweden: +46 (0)8 5033 6546 Germany: +49 (0)69 2222 10763 UK: +44 (0)330 336 9401 USA: +1 929-477-0443

Participant Passcode: 618471

Agenda

14.50 Conference number is opened 15.00 Presentation of quarterly results 15.20 Q&A 16.00 End of the conference

During the conference call a presentation will be held. To access the presentation, please use this link:

https://www.elanders.com/presentations

Contact information

Further information can be found on Elanders' website www.elanders.com or requested via e-mail info@elanders.com.

Questions concerning this report can be put to:

Magnus Nilsson Andréas Wikner Elanders AB (publ)

Phone +46 31 750 07 50 Phone +46 31 750 07 50 Flöjelbergsgatan 1 C

President and CEO Chief Financial Officer (Company ID 556008-1621) 431 35 Mölndal, Sweden Phone +46 31 750 00 00

This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.

GROUP

Group – Income Statements

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Net sales	2,572	2,806	11,020	11,254
Cost of products and services sold	-2,234	-2,422	-9,592	-9,780
Gross profit	337	384	1,428	1,474
Sales and administrative expenses	-285	-278	-1,152	-1,144
Other operating income	28	11	81	63
Other operating expenses	-13	-7	-40	-34
Operating result	67	110	317	359
Net financial items	-39	-37	-146	-143
Result after financial items	28	73	171	216
Income tax	-13	-23	-53	-63
Result for the period	15	50	118	153
Result for the period attributable to:
- parent company shareholders	15	49	114	148
- non-controlling interests	0	1	4	5
Earnings per share, SEK 1) 2)	0.43	1.40	3.23	4.19
Average number of shares, in thousands	35,358	35,358	35,358	35,358
Outstanding shares at the end of the year, in thousands	35,358	35,358	35,358	35,358

1) Earnings per share before and after dilution.

2) Earnings per share calculated by dividing the result for the period attributable to parent company shareholders by the average number of outstanding shares during the period.

Group - Statements of Comprehensive Income

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Result for the period	15	50	118	153
Items that will not be reclassified to
the income statement
Remeasurements after tax	0	0	-10	-10
Items that will be reclassified to the income statement
Translation differences after tax	130	70	127	67
Hedging of net investment abroad after tax	-8	-9	-11	-11
Other comprehensive income	121	61	106	46
Total comprehensive income for the period	137	111	225	199
Total comprehensive income attributable to:
- parent company shareholders	137	110	221	194
- non-controlling interests	0	1	4	5

Group - Statements of Cash Flow

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Result after financial items	28	73	171	216
Adjustments for items not included in cash flow	209	224	1,116	1,131
Paid tax	-32	-25	-121	-114
Changes in working capital	95	84	116	104
Cash flow from operating activities	300	355	1,281	1,337
Net investments in intangible and tangible assets	-16	-23	-125	-133
Acquisition of operations	1	-5	-	-5
Change in long-term receivables	-	-	-2	-2
Cash flow from investing activities	-15	-28	-127	-140
Amortization of borrowing debts	-23	-22	-139	-140
Amortization of lease liabilities	-172	-164	-690	-681
Other changes in long- and short-term borrowing	14	-158	-160	-333
Dividend to shareholders	-	-	-104	-104
Transactions with shareholders with non-controlling interests	58	-	33	-25
Cash flow from financing activities	-123	-344	-1,060	-1,282
Cash flow for the period	162	-16	93	-84
Liquid funds at the beginning of the period	655	722	731	722
Translation difference	56	24	49	17
Liquid funds at the end of the period	873	731	873	655
Net debt at the beginning of the period	3,961	2,539	4,358	2,539
Effect of applying IFRS 16 at the beginning of the period	-	2,043	-	2,043
Translation difference	223	70	246	93
Acquired and divested operations	-272	-329	-1,006	-1,062
Changes with cash effect	-1	35	312	348
Changes with no cash effect	3,911	4,358	3,911	3,961
Net debt at the end of the period
	356	390	1,421	1,454

Group – Statements of Financial Position

	31 Mar.
MSEK	2020	2019	2019
Assets
Intangible assets	3,383	3,252	3,229
Tangible assets	2,486	2,733	2,486
Other fixed assets	327	272	311
Total fixed assets	6,196	6,257	6,026
Inventories	489	415	335
Accounts receivable	1,670	1,789	1,740
Other current assets	504	557	448
Cash and cash equivalents	873	731	655
Total current assets	3,536	3,492	3,179
Total assets	9,732	9,749	9,205
Equity and liabilities
Equity	2,972	2,818	2,777
Liabilities
Non-interest-bearing long-term liabilities	222	200	214
Interest-bearing long-term liabilities	3,692	3,833	3,579
Total long-term liabilities	3,915	4,033	3,793
Non-interest-bearing short-term liabilities	1,754	1,642	1,597
Interest-bearing short-term liabilities	1,091	1,256	1,037
Total short-term liabilities	2,845	2,898	2,635
Total equity and liabilities	9,732	9,749	9,205

Group – Statements of Changes in Equity

First quarter			Last	Full year
MSEK	2020	2019	12 months	2019
Opening balance	2,777	2,707	2,818	2,707
Dividend to parent company shareholders	-	-	-103	-103
Dividend to non-controlling interests	-	-	-1	-1
Transactions with shareholders with non-controlling interests	58	-	33	-25
Total comprehensive income for the period	137	111	225	199
Closing balance	2,972	2,818	2,972	2,777
Attributable to:
- parent company shareholders	2,954	2,807	2,954	2,777
- non-controlling interests	18	11	18	-

Segment reporting

The two business areas are reported as reportable segments, since this is how the Group is governed and the President has been identified as the highest executive decision-maker. The operations within each reportable segment have similar economic characteristics and resemble each other regarding the nature of their products and services, production processes and customer types. Sales between segments are made on market terms.

Net sales per segment

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Supply Chain Solutions	1,905	2,231	8,449	8,775
Print & Packaging Solutions	686	599	2,651	2,564
Group functions	10	10	38	38
Eliminations	-29	-34	-118	-122
Group net sales	2,572	2,806	11,020	11,254

Operating result per segment

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Supply Chain Solutions	46	87	178	219
Print & Packaging Solutions	30	31	173	174
Group functions	-9	-8	-34	-34
Group operating result	67	110	317	359

Disaggregation of revenue

Revenue has been divided into geographic markets, main revenue streams and customer segments since these are the categories the Group uses to present and analyze revenue in other contexts. Income for each category is presented per reportable segment. The Group's customer contracts are easy to identify and products and services in a contract are largely connected and dependent on each other, and therefore part of an integrated offer.

Main revenue streams are presented based on the internal names used in the Group. Sourcing & Procurement services refer to the purchase and procurement of products for customers as well as handling the flows connected to these products. Freight and transportation services refer to revenue from freight and transportation with our own trucks as well as pure freight forwarding. Other supply chain services such as fulfilment, kitting, warehousing, assembly and after sales services are presented under Other contract logistics services. Other work/services refer to pure print services and other services that do not fit into any of the first three categories.

Intra-group invoicing regarding group functions is reported net in net sales to group companies.

First quarter

	Supply Chain Solutions		Print & Packaging Solutions			Total
MSEK	2020	2019	2020	2019	2020	2019
Total net sales	1,905	2,231	686	599	2,591	2,830
Less: net sales to group companies	-6	-5	-14	-19	-19	-24
Net sales	1,899	2,226	672	580	2,572	2,806

	Supply Chain Solutions		Print & Packaging Solutions			Total
MSEK	2020	2019	2020	2019	2020	2019
Customer segments
Automotive	476	564	100	88	576	652
Electronics	717	947	16	11	733	958
Fashion & Lifestyle	296	299	253	171	549	470
Health Care & Life Science	71	57	9	16	80	73
Industrial	243	250	161	163	404	413
Other	96	110	133	131	230	240
Net sales	1,899	2,226	672	580	2,572	2,806
Main revenue streams
Sourcing and procurement services	455	640	-	-	455	640
Freight and transportation services	556	624	163	98	719	722
Other contract logistics services	815	887	102	91	916	978
Other work/services	74	75	408	391	482	466
Net sales	1,899	2,226	672	580	2,572	2,806
Geographic markets
Europe	1,266	1,396	386	380	1,653	1,776
Asia	514	731	3	4	517	735
North and South America	117	97	281	195	399	292
Other	2	2	2	1	4	3
Net sales	1,899	2,226	672	580	2,572	2,806

Last 12 months and full year 2019

		Supply Chain Print & Packaging Solutions Solutions			Total
MSEK	Last 12 months	Full year 2019	Last 12 months	Full year 2019	Last 12 months	Full year 2019
Total net sales	8,449	8,775	2,651	2,564	11,100	11,339
Less: net sales to group companies	-27	-26	-52	-59	-80	-85
Net sales	8,422	8,749	2,598	2,505	11,020	11,254

	Supply Chain		Print & Packaging
	Solutions		Solutions		Total
	Last	Full year	Last	Full year	Last	Full year
MSEK	12 months	2019	12 months	2019	12 months	2019
Customer segments
Automotive	1,992	2,081	408	396	2,400	2,477
Electronics	3,485	3,715	55	50	3,540	3,765
Fashion & Lifestyle	1,259	1,261	833	751	2,091	2,012
Health Care & Life Science	259	244	48	55	306	299
Industrial	988	995	680	682	1,668	1,677
Other	439	452	575	573	1,014	1,025
Net sales	8,422	8,749	2,598	2,505	11,020	11,254
Main revenue streams
Sourcing and procurement services	2,494	2,679	-	-	2,494	2,679
Freight and transportation services	2,321	2,388	485	420	2,805	2,808
Other contract logistics services	3,329	3,401	371	361	3,700	3,762
Other work/services	279	280	1,742	1,725	2,022	2,005
Net sales	8,422	8,749	2,598	2,505	11,020	11,254
Geographic markets
Europe	5,285	5,415	1,649	1,642	6,934	7,057
Asia	2,669	2,886	11	12	2,680	2,898
North and South America	459	439	932	845	1,391	1,283
Other	9	9	7	7	15	15
Net sales	8,422	8,749	2,598	2,505	11,020	11,254

Net sales per quarter

	2020			2018
	First	Fourth	Third	Second	First	Fourth
MSEK	quarter	quarter	quarter	quarter	quarter	quarter
Customer segments
Automotive	576	538	637	648	652	602
Electronics	733	1,028	922	857	958	1,042
Fashion & Lifestyle	549	510	521	512	469	506
Health Care & Life Science	80	84	77	65	73	61
Industrial	404	433	428	404	413	396
Other	230	311	240	234	241	284
Net sales	2,572	2,904	2,825	2,719	2,806	2,890

Financial assets and liabilities measured at fair value

The financial instruments recognized at fair value in the Group's report on financial position are derivatives identified as hedging instruments. The derivatives consist of forward contracts and are used for hedging purposes. Valuation at fair value of forward contracts is based on published forward rates on an active market. All derivates are therefore included in level 2 in the fair value hierarchy. Since all the financial instruments recognized at fair value are included in level 2 there have been no transfers between valuation levels.

Derivative instruments in hedge accounting relationships recognized at fair value is presented under other current assets and non-interest bearing short-term liabilities. These items gross are below MSEK 1 both per 31 March 2020 and the comparison periods.

The fair value of other financial assets and liabilities valued at their amortized purchase price is estimated to be equivalent to their book value.

QUARTERLY DATA

	2020	2019	2019	2019	2019	2018	2018	2018	2018
	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales, MSEK	2,572	2,904	2,825	2,719	2,806	2,890	2,817	2,613	2,422
EBITDA, MSEK	297	215	387	349	334	217	206	168	134
EBITDA adjusted, MSEK	297	395	377	339	324	217	206	168	134
EBITA, MSEK	81	-11	169	132	123	169	154	116	83
EBITA adjusted, MSEK	81	169	159	122	113	169	154	116	83
EBITA-margin, %	3.1	-0.4	6.0	4.8	4.4	5.9	5.5	4.4	3.4
EBITA-margin adjusted, %	3.1	5.8	5.6	4.5	4.0	5.9	5.5	4.4	3.4
Operating result, MSEK	67	-25	156	118	110	153	138	100	68
Operating margin, %	2.6	-0.8	5.5	4.3	3.9	5.3	4.9	3.8	2.8
Result after financial items, MSEK	28	-59	118	84	73	132	114	74	46
Result after tax, MSEK	15	-44	88	59	50	108	75	42	34
Earnings per share, SEK 1)	0.43	-1.26	2.43	1.62	1.40	3.01	2.07	1.15	0.95
Earnings per share adjusted, SEK 1)	0.43	2.29	2.23	1.42	1.20	3.01	2.07	1.15	0.95
Operating cash flow, MSEK	356	374	439	251	390	393	52	127	-34
Cash flow per share, SEK2)	8.47	9.51	11.70	6.54	10.05	10.27	0.94	2.85	-1.17
Depreciation and write-downs, MSEK	229	240	232	231	224	64	68	68	67
Net investments, MSEK	15	32	27	53	28	17	41	41	38
Goodwill, MSEK	2,603	2,480	2,539	2,497	2,476	2,439	2,440	2,466	2,429
Total assets, MSEK	9,732	9,205	9,931	9,823	9,749	7,737	7,896	7,850	7,684
Equity, MSEK	2,972	2,777	2,931	2,776	2,818	2,707	2,596	2,554	2,559
Equity per share, SEK	83.54	78.54	82.52	78.20	79.38	76.28	73.16	72.02	72.17
Net debt, MSEK	3,911	3,961	4,272	4,587	4,358	2,539	2,890	2,915	2,834
Capital employed, MSEK	6,882	6,738	7,203	7,363	7,176	5,246	5,486	5,469	5,392
Return on total assets, % 3)	4.3	neg.	7.3	5.3	5.3	8.0	7.0	6.3	5.1
Return on equity, % 3)	2.1	neg.	12.1	8.2	7.2	16.1	11.4	6.4	5.4
Return on capital employed, % 3)	4.0	neg.	8.5	6.5	6.1	11.4	10.1	7.3	5.2
Debt/equity ratio	1.3	1.4	1.5	1.7	1.6	0.9	1.1	1.1	1.1
Equity ratio, %	30.5	30.2	29.5	28.3	28.9	35.0	32.9	32.5	33.3
Interest coverage ratio 4)	2.5	2.7	4.3	4.6	4.9	5.3	4.7	3.7	3.8
Number of employees at the end of	6,528	6,664	6,704	6,764	6,788	6,652	7,246	7,170	7,085

the period

1) There is no dilution.

2) Cash flow per share refers to cash flow from operating activities.

3) Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12-month period).

4) Interest coverage ratio calculation is based on a moving 12-month period.

FIVE YEAR OVERVIEW – FIRST QUARTER

	2020	2019	2018	2017	2016
Net sales, MSEK	2,572	2,806	2,422	2,139	998
EBITA, MSEK	81	123	83	105	62
EBITA adjusted, MSEK	81	113	83	105	62
Result after tax, MSEK	15	50	34	53	36
Earnings per share, SEK 1) 2)	0.43	1.40	0.95	1.49	1.26
Cash flow from operating activities per share, SEK 2)	8.47	10.05	-1.17	-5.31	0.89
Equity per share, SEK 2)	83.54	79.38	72.17	69.39	53.33
Return on equity, % 3)	2.1	7.2	5.4	8.7	9.5
Return on capital employed, % 3)	4.0	6.1	5.2	7.5	10.0
EBITA-margin, %	3.1	4.4	3.4	4.9	6.2
EBITA-margin adjusted, %	3.1	4.0	3.4	4.9	6.2
Operating margin, %	2.6	3.9	2.8	4.2	5.6
Average number of shares, in thousands 2)	35,358	35,358	35,358	35,358	28,224

1) There is no dilution

2) Historic number of shares and historic key ratios have been adjusted for the bonus issue element in the new share issue in 2016.

3) Return ratios have been annualized (results are recalculated to correspond to a 12-month period.

FIVE YEAR OVERVIEW – FULL YEAR

	2019	2018	2017	2016	2015
Net sales, MSEK	11,254	10,742	9,342	6,285	4,236
EBITDA, MSEK	1,285	725	563	516	428
EBITDA adjusted, MSEK	1,435	725	563	516	428
EBITA, MSEK	413	523	371	384	313
EBITA adjusted, MSEK	563	523	371	384	313
Result after financial items, MSEK	216	366	230	300	259
Result after tax, MSEK	153	259	165	217	175
Earnings per share, SEK 1) 2)	4.19	7.18	4.65	7.35	6.18
Cash flow from operating activities per share, SEK 2)	37.81	12.88	-1.81	11.19	9.52
Equity per share, SEK 2)	78.54	76.28	69.21	68.19	52.72
Dividends per share, SEK 2)	- 3)	2.90	2.60	2.60	2.07
EBITA-margin, %	3.7	4.9	4.0	6.1	7.4
EBITA-margin adjusted, %	5.0	4.9	4.0	6.1	7.4
Return on total assets, %	4.2	6.6	4.3	6.7	8.2
Return on equity, %	5.3	9.8	6.8	12.4	12.1
Return on capital employed, %	5.0	8.5	6.2	10.0	12.6
Net debt/EBITDA ratio, times	3.1	3.5	4.7	4.3	1.7
Net debt/EBITDA adjusted ratio, times	2.8	3.5	4.7	4.3	1.7
Debt/equity ratio, times	1.4	0.9	1.1	0.9	0.5
Equity ratio, %	30.2	35.0	33.1	35.6	42.0
Average number of shares, in thousands 2)	35,358	35,358	35,358	29,555	28,224

1) There is no dilution.

2) Historic number of shares and historic key ratios have been adjusted for the bonus issue element in the new share issues in 2016.

3) Proposed by the board

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FINANCIAL OVERVIEW

	First quarter			Full year
MSEK	2020	2019	Last 12 months	2019
Operating result	67	110	317	359
Depreciation, amortization and write-downs	229	224	932	927
Adjustments for one-off items	-	-10	159	150
EBITDA adjusted	297	324	1,408	1,435
Operating result	67	110	317	359
Amortization of assets identified in conjunction
with acquisitions	13	13	54	54
EBITA	81	123	371	413
Adjustments for one-off items	-	-10	159	150
EBITA adjusted	81	113	530	563
EBITA-margin, %	3.1	4.4	3.4	3.7
EBITA-margin adjusted, %	3.1	4.0	4.8	5.0
Cash flow from operating activities	300	355	1,281	1,337
Net financial items	39	37	146	143
Paid tax	32	26	121	114
Net investments	-15	-28	-127	-140
Operating cash flow	356	390	1,421	1,454
Interest-bearing long-term liabilities	3,692	3,833	3,692	3,579
Interest-bearing short-term liabilities	1,091	1,256	1,091	1,037
Cash and cash equivalents	-873	-731	-873	-655
Net debt at the end of the period	3,911	4,358	3,911	3,961
Net debt/EBITDA adjusted, ratio	3.3	3.4	2.8	2.8

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – QUARTERLY DATA

MSEK	2020 Q1	2019 Q4	2019 Q3	2019 Q2	2019 Q1	2018 Q4	2018 Q3	2018 Q2	2018 Q1
Operating result	67	-25	156	118	110	153	138	100	68
Depreciation, amortization and
write-downs	229	240	232	231	224	64	68	68	67
EBITDA	297	215	387	349	334	217	206	168	134
Operating result	67	-25	156	118	110	153	138	100	68
Amortization of assets identified in
conjunction with acquisitions	13	14	14	14	13	16	16	16	16
EBITA	81	-11	169	132	123	169	154	116	83
Cash flow from operating activities	300	336	414	231	355	363	33	101	-41
Net financial items	39	35	37	34	37	21	24	26	22
Paid tax	32	35	15	39	26	26	36	42	23
Net investments	-15	-32	-27	-53	-28	-17	-41	-41	-38
Operating cash flow	356	374	439	251	390	393	52	127	-34
Average total assets	9,469	9,568	9,877	9,786	9,764	7,817	7,873	7,767	7,547
Average cash and cash equivalents	-764	-772	-805	-726	-726	-616	-552	-574	-616
Average non-interest-bearing liabilities	-1,895	-1,826	-1,789	-1,790	-1,805	-1,835	-1,844	-1,763	-1,676
Average capital employed	6,810	6,970	7,283	7,270	7,233	5,366	5,477	5,430	5,255
Annualized operating result	270	-98	623	472	438	614	552	399	271
Return on capital employed, %	4.0	neg.	8.5	6.5	6.1	11.4	10.1	7.3	5.2
Interest-bearing long-term liabilities	3,692	3,579	3,845	3,931	3,833	2,442	186	2,575	2,559
Interest-bearing short-term liabilities	1,091	1,037	1,315	1,377	1,256	819	3,213	935	826
Cash and cash equivalents	-873	-655	-888	-721	-731	-722	-509	-596	-552
Net debt at the end of the period	3,911	3,961	4,272	4,587	4,358	2,539	2,890	2,915	2,834

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FIRST QUARTER

MSEK	2020	2019	2018	2017	2016
Operating result	67	110	68	90	56
Amortization of assets identified in conjunction
with acquisitions	13	13	16	15	6
EBITA	81	123	83	105	62
Average total assets	9,469	9,764	7,547	6,923	3,542
Average cash and cash equivalents	-764	-726	-616	-682	-526
Average non-interest-bearing liabilities	-1,895	-1,805	-1,676	-1,478	-776
Average capital employed	6,810	7,233	5,255	4,763	2,240
Annualized operating result	270	438	271	359	224
Return on capital employed, %	4.0	6.1	5.2	7.5	10.0

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FULL YEAR

MSEK	2019	2018	2017	2016	2015
Operating result	359	459	308	344	292
Depreciation, amortization and write-downs	927	266	255	172	136
EBITDA	1,285	725	563	516	428
Operating result	359	459	308	344	292
Amortization of assets identified in conjunction
with acquisitions	54	64	63	40	21
EBITA	413	523	371	384	313
Average total assets	9,677	7,792	7,154	5,132	3,559
Average cash and cash equivalents	-749	-595	-639	-573	-418
Average non-interest-bearing liabilities	-1,808	-1,799	-1,532	-1,131	-816
Average capital employed	7,120	5,398	4,983	3,428	2,325
Annualized operating result	359	459	308	344	292
Return on capital employed, %	5.0	8.5	6.2	10.0	12.6

PARENT COMPANY

Parent Company – Income Statements

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Net sales	10	9	38	38
Operating expenses	-19	-18	-73	-74
Operating result	-9	-9	-35	-35
Net financial items	6	4	214	211
Result after financial items	-3	-5	178	176
Income tax	0	0	-5	-5
Result for the period	-2	-5	174	171

Parent Company - Statements of Comprehensive Income

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Result for the period	-2	-5	174	171
Other comprehensive income	-	-	-	-
Total comprehensive income for the period	-2	-5	174	171

Parent Company - Balance Sheets

	31 Mar.	31 Dec.
MSEK	2020	2019	2019
Assets
Fixed assets	4,685	4,531	4,450
Current assets	121	266	198
Total assets	4,806	4,797	4,648
Equity, provisions and liabilities
Equity	1,715	1,643	1,717
Provisions	2	3	8
Long-term liabilities	2,342	2,326	2,220
Short-term liabilities	748	824	702
Total equity, provisions and liabilities	4,806	4,797	4,648

Parent Company - Statements of Changes in Equity

	First quarter		Last	Full year
MSEK	2020	2019	12 months	2019
Opening balance	1,717	1,649	1,643	1,649
Dividend	-	-	-103	-103
Total comprehensive income for the period	-2	-5	174	171
Closing balance	1,715	1,643	1,715	1,717

DEFINITIONS

Average number of employees	The number of employees at the end of each month divided by number of months.
Average number of shares	Weighted average number of shares outstanding during the period.
Capital employed	Total assets less liquid funds and non-interest-bearing liabilities.
Debt/equity ratio	Net debt in relation to reported equity, including non controlling interests.
Earnings per share	Result for the period attributable to parent company shareholders divided by the average number of shares.
EBIT	Earnings before interest and taxes; operating result.
EBITA	Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions.
EBITA adjusted	Earnings before interest, taxes and amortization; operating result plus amortization of assets identified in conjunction with acquisitions adjusted for one-off items.
EBITDA	Earnings before interest, taxes, depreciation and amortization; operating result plus depreciation, amortization and write-downs of intangible assets and tangible fixed assets.
EBITDA adjusted	Earnings before interest, taxes, depreciation and amortization; operating result plus depreciation, amortization and write-downs of intangible assets and tangible fixed assets adjusted for one-off items.
Equity ratio	Equity, including non-controlling interests, in relation to total assets.
Interest coverage ratio	Operating result plus interest income divided by interest costs.
Net debt	Interest bearing liabilities less liquid funds.
Operating cash flow	Cash flow from operating activities and investing activities, adjusted for paid taxes and financial items.
Operating margin	Operating result in relation to net sales.
Return on capital employed (ROCE)	Operating result in relation to average capital employed.
Return on equity	Result for the year in relation to average equity.
Return on total assets	Operating result plus financial income in relation to average total assets.