Bergman & Beving

Earnings Release • Aug 2, 2019

Interim Report 1 April-31 December 2018

Third quarter (1 October-31 December 2018)

• Revenue amounted to MSEK 994 (954).
• EBITA increased with 16 percent and totalled MSEK 64 (55), corresponding to an EBITA margin of 6.4 percent (5.8).
• Operating profit amounted to MSEK 61 (53), corresponding to an operating margin of 6.1 percent (5.6).
• Net profit totalled MSEK 45 (41).
• Earnings per share amounted to SEK 1.65 (1.50).
• Cash flow from operating activities totalled MSEK 110 (118).

Nine months (1 April-31 December 2018)

• Revenue amounted to MSEK 2,950 (2,873).
• EBITA increased with 12 percent and totalled MSEK 192 (171), corresponding to an EBITA margin of 6.5 percent (6.0).
• Operating profit amounted to MSEK 182 (165), corresponding to an operating margin of 6.2 percent (5.7).
• Net profit totalled MSEK 131 (118).
• Earnings per share amounted to SEK 4.85 (4.20).
• The return on working capital (P/WC) for the rolling 12-month period was 22 percent (20).
• Cash flow from operating activities totalled MSEK 299 (130).

Significant events since the start of the operating year

• Three acquisitions have been completed, with total annual revenue of approximately MSEK 90.
• Johan Sjö was elected as the new Chairman of the Board at the Annual General Meeting on 23 August 2018.
• In accordance with a resolution by Bergman & Beving's Annual General Meeting on 23 August 2018, the number of Class B shares outstanding was reduced by 1,000,000.

		3 months			9 months		R12 months	Full-year
Continuing operations MSEK	Oct-Dec 2018	Oct-Dec 2017	∆ %	Apr-Dec 2018	Apr-Dec 2017	∆ %	Jan-Dec 2018	2017/2018
Revenue	994	954	4	2,950	2,873	3	3,910	3,833
EBITA	64	55	16	192	171	12	245	224
EBITA margin, percent	6.4	5.8		6.5	6.0		6.3	5.8
Net profit (after taxes)	45	41	10	131	118	11	171	158
Earnings per share before dilution, SEK Earnings per share after dilution,	1.65	1.50	10	4.85	4.20	15	6.35	5.70
SEK	1.65	1.50	10	4.85	4.20	15	6.35	5.70
P/WC, percent							22	20
Equity/assets ratio, percent Number of employees at the end of				44	43		44	43
the period	1,030	1,078	-4	1,030	1,078	-4	1,030	1,028

CEO's comments

Good earnings growth during the third quarter

The Group's positive performance continued during the third quarter. Profit rose by 16 percent and the operating margin strengthened. Revenue from proprietary product brands continued to increase and the initiatives to widen the consumer base began to generate results.

Overall, we experienced stable demand in our main markets in the Nordic region, without any major effects from the uncertain market situation. As before, demand in the Norwegian market displayed a positive trend. We also experienced early signs of increased demand from the Swedish renovations market. This is positive, since it contributes to stronger demand from our customers, who generally have a significantly higher exposure to this segment than to new housing construction.

It is encouraging that the Building Materials division increased its sales and consolidated its leading market position in the Nordic region while we also made progress in our aim to grow the business geographically. Sales in the Workplace Safety division were favourable but with a temporary negative margin impact due to start-up costs associated with new customer contracts and targeted growth initiatives for our strong brands. The ongoing changes within the Tools & Consumables division remained positive during the quarter and the profit increased. We are not yet satisfied with the results in the subsidiary Luna and we continue our efforts to further improve profitability.

Acquisitions

Acquisitions remain an important part of our strategy for growth. During the quarter, a minor acquisition was completed that complements our current position within the weighing niche. We are continuing to actively pursue appropriate additions to the Group and see good opportunities to acquire attractive companies in the future, not least given our strong financial position.

Stockholm, February 2019

Pontus Boman President & CEO

Profit and revenue

Third quarter (Oct-Dec 2018)

Revenue rose by 4 percent to MSEK 994 (954). For comparable units, revenue declined by 1 percent in local currency and acquisitions increased revenue by 3 percent. Exchange-rate fluctuations had a positive impact of 2 percent on revenue.

Revenue from proprietary product brands increased and the share grew. Our investments in the Company's brands and our focus to broaden the customer portfolio intensified and sales to new customers increased. The gross margin strengthened and earnings improved.

EBITA for the third quarter amounted to MSEK 64 (55), corresponding to an EBITA margin of 6.4 percent (5.8).

Profit after financial items totalled MSEK 58 (47) and net profit amounted to MSEK 45 (41), corresponding to earnings per share of SEK 1.65 (1.50).

Nine months (Apr-Dec 2018)

Revenue rose by 3 percent to MSEK 2,950 (2,873). For comparable units, revenue declined by 2 percent in local currency and acquisitions increased revenue by 2 percent. Exchange-rate fluctuations had a positive impact of 3 percent on revenue.

EBITA for the period amounted to MSEK 192 (171), corresponding to an EBITA margin of 6.5 percent (6.0).

Profit for the first quarter was impacted positively by items affecting comparability amounting to MSEK 2.

Profit after financial items totalled MSEK 168 (147) and net profit amounted to MSEK 131 (118), corresponding to earnings per share of SEK 4.85 (4.20).

Performance by division

	R12
	3 months			9 months			months	Full-year
Continuing operations	Oct-Dec	Oct-Dec		Apr-Dec	Apr-Dec		Jan-Dec
MSEK	2018	2017	∆ %	2018	2017	∆ %	2018	2017/2018
Revenue
Building Materials	227	209	9	780	739	6	1,050	1,009
Workplace Safety	369	349	6	1,020	1,005	1	1,332	1,317
Tools & Consumables	418	397	5	1,182	1,126	5	1,560	1,504
Group-wide/eliminations	-20	-1		-32	3		-32	3
Total revenue	994	954	4	2,950	2,873	3	3,910	3,833
EBITA
Building Materials	12	6	100	68	67	1	93	92
Workplace Safety	36	39	-8	97	76	28	124	103
Tools & Consumables	22	15	47	42	18	133	46	22
Group-wide/eliminations	-6	-5		-15	10		-18	7
Total EBITA	64	55	16	192	171	12	245	224
EBITA margin, percent
Building Materials	5.3	2.9		8.7	9.1		8.9	9.1
Workplace Safety	9.8	11.2		9.5	7.6		9.3	7.8
Tools & Consumables	5.3	3.8		3.6	1.6		2.9	1.5
Total EBITA margin	6.4	5.8		6.5	6.0		6.3	5.8

Building Materials

Revenue in Building Materials increased by 9 percent to MSEK 227 (209) and EBITA amounted to MSEK 12 (6). Revenue for the first nine months rose by 6 percent to MSEK 780 (739) and EBITA totalled MSEK 68 (67). Profit for the first nine months of the preceding year was impacted negatively by items affecting comparability of approximately MSEK 2.

Demand from customers in the construction sector remained stable. Customers in the Swedish market acted with some caution, while demand in the Norwegian and Baltic markets developed positively. Demand from shipyard customers increased from a low level. The subsidiary ESSVE launched its new e-commerce platform during the quarter.

Workplace Safety

Workplace Safety's revenue rose by 6 percent to MSEK 369 (349) and EBITA amounted to MSEK 36 (39). Revenue for the first nine months rose by 1 percent to MSEK 1,020 (1,005) and EBITA totalled MSEK 97 (76). Profit for the first nine months of the preceding year was impacted negatively in an amount of approximately MSEK 9 due to items affecting comparability related to the restructuring of the operations.

Demand for personal protective equipment in the market remained favourable and the establishment of our strong brands as independent units continued according to plan. The quarter's gross margin was negatively affected by

start-up costs associated with the introduction of new customer contracts. Targeted initiatives for the geographic expansion of our strong brands impacted earnings negatively.

Tools & Consumables

Revenue for Tools & Consumables rose by 5 percent to MSEK 418 (397) and EBITA totalled MSEK 22 (15). Revenue for the first nine months rose by 5 percent to MSEK 1,182 (1,126) and EBITA totalled MSEK 42 (18). Profit for the first nine months of the preceding year was impacted negatively with an amount of approximately MSEK 12 by items affecting comparability related to the restructuring of the operations.

Demand from industrial customers within our primary markets remained at a high level. The structural measures implemented in the subsidiary Luna continued to generate positive results and efforts to further improve profitability went according to plan. The other units in the division reported favourable earnings trends and strengthened their margins.

Group-wide and eliminations

Group-wide expenses and eliminations for the third quarter amounted to MSEK -6 (-5). Group-wide expenses for the first nine months totalled MSEK -15 (+10). Profit for the first nine months of the preceding year was impacted positively by items affecting comparability of approximately MSEK 24.

The Parent Company's revenue amounted to MSEK 22 (23) and profit after financial items to MSEK 20 (17) for the period. These results do not include any Group contributions, intra-Group dividends or other corresponding items.

Employees

At the end of the period, the number of employees in the Group amounted to 1,030, compared with 1,028 at the beginning of the financial year. The operations were streamlined by 23 employees during the period, while 25 employees were gained via acquisitions.

Corporate acquisitions

In early April, the Building Materials division acquired all shares in BVS Brannvernsystemer A/S (BVS) and its group companies. BVS is a provider of passive fire protection solutions focusing on fire curtains, smoke ventilation and inspection hatches under its own brand names Flammatex and Inspecto. The business is primarily aimed at the Norwegian market, but the company also has a sales company in Sweden and own production in Hungary. The company, based in Stavanger, generates annual revenue of approximately MNOK 20 and has 15 employees.

In early May, the Tools & Consumables division acquired all shares in Belano Maskin AB (Belano). Belano is a leading supplier of machinery, spare parts and service focused on the attractive niche of construction and ventilation sheet-metal workers. The business is primarily aimed at the Swedish market. The company, based in Alingsås, generates annual revenue of approximately MSEK 65 and has ten employees.

During the quarter, a minor company within weighing was acquired.

The following analysis is preliminary.

Fair value of
acquired assets and liabilities	MSEK
Customer relations	32
Other non-current assets	2
Other assets	36
Deferred tax liability, net	7
Non-current liabilities	2
Current liabilities	11
Acquired net assets	50
Goodwill	38
Purchase consideration paid for shares	86
Additional purchase consideration Less: Cash and cash equivalents in acquired	2
companies	-18
Redemption of interest-bearing liabilities	-2
Net change in cash and cash equivalents	-70

The acquisitions are expected to have a marginally positive impact on Bergman & Beving's earnings per share for the 2018/2019 operating year.

Acquisition Closing		Revenue, MSEK*	No. of empl.*	Division
BVS,	April			Building
Norway	2018	22	15	Materials
Belano,	May			Tools &
Sweden	2018	65	10	Consumables
B&O Vågar,	Nov			Tools &
Sweden	2018	3	0	Consumables

* Refers to the situation assessed on a full-year basis on the date of acquisition.

Profitability, cash flow and financial position

Profitability, measured as the return on working capital (P/WC), amounted to 22 percent (20). The return on capital employed was 9 percent (8 at the beginning of the year) and the return on equity was 11 percent (9 at the beginning of the year).

Cash flow from operating activities for the period amounted to MSEK 299 (130), with cash flow for the year-earlier period including discontinued operations. Funds tied up in working capital decreased by MSEK 79. During the period, the Group's inventories increased by MSEK 65 and operating receivables decreased by MSEK 105. Operating liabilities declined by MSEK 39.

Cash flow for the period was impacted in an amount of MSEK -50 (3) pertaining to investments and divestments of non-current assets and an amount of MSEK -70 (-191) pertaining to the acquisition and divestment of operations.

The Group's operational net loan liability at the end of the period amounted to MSEK 282 (337), excluding pension obligations of MSEK 652 (612). Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 518 (564).

The equity/assets ratio was 44 percent (43 percent at the beginning of the year).

Equity per share amounted to SEK 59.55, compared with SEK 56.10 at the beginning of the year. Equity per share after dilution totalled SEK 59.55, compared with SEK 56.15 at the beginning of the year.

The Swedish tax rate, which is also the Parent Company's tax rate, was 22 percent. The Group's weighted average tax rate, with its current geographic mix, was approximately 23 percent. In June, the Swedish Riksdag passed a proposal concerning new tax rules, including interest deduction restrictions and a two-stage reduction in corporate tax to 20.6 percent by 2021. As a result of the reduced tax rate, deferred tax assets and tax liabilities have been remeasured. This remeasurement resulted in an accounting tax expense of approximately MSEK 1.

Share structure and repurchase of shares

At the end of the financial year, share capital totalled MSEK 56.9. In accordance with a resolution by Bergman & Beving's Annual General Meeting on 23 August 2018, the number of Class B shares outstanding was reduced by 1,000,000. The distribution by class of share is 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 Total number of shares before	26,373,980	26,373,980	96.1	71.3
repurchasing	27,436,416	36,998,340	100.0	100.0
Of which, repurchased Class B shares Total number of shares after	-426,706		1.6	1.2
repurchasing	27,009,710

The share price as of 31 December 2018 was SEK 84.70. The average number of treasury shares was 1,011,891 during the period and 426,706 at the end of the period. The average purchase price for the repurchased shares was SEK 92.83 per share.

CALL OPTION PROGRAMMES

Outstanding programmes	No. of options	Corresponding no. of shares	% of total shares	Redemption price	Redemption period
Call option programme 2017/2021	160,000	160,000	0.6%	118.10	14 Sep 2020-11 Jun 2021
Call option programme 2018/2022	210,000	210,000	0.7%	117.90	13 Sep 2021-10 Jun 2022

Call options issued for repurchased shares did not result in any dilution effect over the most recent 12-month period.

Election Committee for the election of the Board of Directors

In accordance with a resolution passed at the Annual General Meeting held in August 2018, the four largest shareholders in terms of votes as of 31 December 2018 have been contacted and asked to appoint members who, together with the Chairman of the Board, will form the Election Committee. The Election Committee thus comprises Board Chairman Johan Sjö, Anders Börjesson, Tom Hedelius, Caroline Sjösten (representative of Swedbank Robur Fonder) and Per Trygg (representative of SEB Fonder). Contact information for the Election Committee is available on Bergman & Beving's website.

Stockholm, 8 February 2019

Pontus Boman President & CEO

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

Other information

Publication

The information in this report is such 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. CET on 8 February 2019.

Dates for forthcoming financial information

Financial Report 2018/2019 – 1 April 2018-31 March 2019 will be published on 16 May 2019 at 7:45 a.m. Interim Report 1 April-30 June 2019 will be published on 17 July at 7:45 a.m. The 2019 Annual General Meeting will be held at IVA, Grev Turegatan 16 in Stockholm on 26 August at 2:00 p.m.

The 2018/2019 Annual Report will be published on Bergman & Beving's website in July.

Contact information

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

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

Reporting by quarter

		2018/2019			2017/2018				2016/2017
MSEK	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue
Building Materials	227	251	302	270	209	244	286	276	220	231	277
Workplace Safety	369	300	351	312	349	291	365	314	335	284	354
Tools & Consumables	418	378	386	378	397	367	362	381	416	370	381
Group-wide/eliminations	-20	-10	-2	0	-1	0	4	-3	-1	-1	0
Total revenue	994	919	1,037	960	954	902	1,017	968	970	884	1,012
EBITA
Building Materials	12	21	35	25	6	23	38	31	21	31	36
Workplace Safety	36	27	34	27	39	22	15	26	27	24	31
Tools & Consumables	22	18	2	4	15	18	-15	10	18	22	16
Group-wide/eliminations	-6	-2	-7	-3	-5	-3	18	-21	-14	5	-3
Total EBITA	64	64	64	53	55	60	56	46	52	82	80
EBITA margin, percent
Building Materials	5.3	8.4	11.6	9.3	2.9	9.4	13.3	11.2	9.5	13.4	13.0
Workplace Safety	9.8	9.0	9.7	8.7	11.2	7.6	4.1	8.3	8.1	8.5	8.8
Tools & Consumables	5.3	4.8	0.5	1.1	3.8	4.9	-4.1	2.6	4.3	5.9	4.2
Total EBITA margin	6.4	7.0	6.2	5.5	5.8	6.7	5.5	4.8	5.4	9.3	7.9

Group summary

CONSOLIDATED INCOME STATEMENT	3 months		9 months		R12 months	Full-year
	Oct-Dec	Oct-Dec	Apr-Dec	Apr-Dec	Jan-Dec
MSEK	2018	2017	2018	2017	2018	2017/2018
Revenue	994	954	2,950	2,873	3,910	3,833
Other operating income	4	3	4	4	3	3
Total operating income	998	957	2,954	2,877	3,913	3,836
Cost of goods sold	-573	-568	-1,705	-1,639	-2,262	-2,196
Personnel costs	-192	-175	-546	-553	-711	-718
Depreciation, amortisation and impairment losses	-7	-6	-23	-19	-29	-25
Other operating expenses	-165	-155	-498	-501	-678	-681
Total operating expenses	-937	-904	-2,772	-2,712	-3,680	-3,620
Operating profit	61	53	182	165	233	216
Financial income and expenses	-3	-6	-14	-18	-20	-24
Profit after financial items	58	47	168	147	213	192
Taxes	-13	-6	-37	-29	-42	-34
Net profit	45	41	131	118	171	158
Net profit from discontinued operations	-	-	-	1,091	-	1,091
Net profit	45	41	131	1,209	171	1,249
Of which, attributable to Parent Company shareholders	45	41	131	1,209	171	1,249
Earnings per share before dilution, SEK	1.65	1.50	4.85	43.10	6.35	44.95
- of which, continuing operations	1.65	1.50	4.85	4.20	6.35	5.70
Earnings per share after dilution, SEK	1.65	1.50	4.85	43.00	6.35	44.90
- of which, continuing operations	1.65	1.50	4.85	4.20	6.35	5.70
Number of shares outstanding before dilution, '000	27,010	27,010	27,010	27,010	27,010	27,010
Weighted number of shares before dilution, '000	27,010	27,652	27,010	28,043	27,010	27,785
Weighted number of shares after dilution, '000	27,010	27,652	27,010	28,108	27,010	27,816

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

MSEK
Net profit	45	41	131	1,209	171	1,249
Remeasurement of defined-benefit pension plans Tax attributable to components that will not be	-25	-19	-25	-52	-32	-59
reclassified	5	4	5	11	7	13
Components that will not be reclassified to net
profit	-20	-15	-20	-41	-25	-46
Translation differences	-10	2	-6	-12	4	-2
Fair value changes for the year in cash-flow hedges	16	2	15	-2	7	-10
Tax attributable to components that will be reclassified	-4	-1	-3	1	-2	2
Components that will be reclassified to net profit	2	3	6	-13	9	-10
Other comprehensive income for the period	-18	-12	-14	-54	-16	-56
Total comprehensive income for the period	27	29	117	1,155	155	1,193
Of which, attributable to Parent Company shareholders	27	29	117	1,155	155	1,193

CONSOLIDATED BALANCE SHEET

MSEK	31 December 2018	31 December 2017	31 March 2018
Assets
Intangible non-current assets	1,650	1,533	1,569
Tangible non-current assets	103	109	88
Financial non-current assets	3	3	2
Deferred tax assets	81	83	81
Inventories	950	891	879
Accounts receivable	652	655	790
Other current receivables	173	210	157
Cash and cash equivalents	77	55	67
Total assets	3,689	3,539	3,633
Equity and liabilities
Equity	1,609	1,521	1,559
Non-current interest-bearing liabilities	125	170	130
Provisions for pensions	652	612	623
Other non-current liabilities and provisions	119	127	115
Current interest-bearing liabilities	234	222	307
Accounts payable	535	480	497
Other current liabilities	415	407	402
Total equity and liabilities	3,689	3,539	3,633
Operational net loan liability	282	337	370

CONSOLIDATED STATEMENT OF EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS

MSEK	31 December 2018	31 December 2017	31 March 2018
Opening equity	1,559	2,724	2,724
Dividend	-68	-141	-141
Exercise and purchase of options for repurchased shares	1	3	3
Repurchase of own shares	-	-118	-118
Distribution of Momentum Group	-	-2,102	-2,102
Total comprehensive income for the period	117	1,155	1,193
Closing equity	1,609	1,521	1,559

CONSOLIDATED CASH-FLOW STATEMENT	3 months		9 months		R12 months	Full-year
MSEK	Oct-Dec 2018	Oct-Dec 2017	Apr-Dec 2018	Apr-Dec 2017	Jan-Dec 2018	2017/2018
Operating activities before changes in working capital	75	24	220	104	241	125
Changes in working capital Cash flow from operating activities, discontinued	35	94	79	52	37	10
operations	-	0	-	-26	0	-26
Cash flow from operating activities	110	118	299	130	278	109
Investments in intangible and tangible assets	-26	-9	-50	-21	-58	-29
Proceeds from sale of intangible and tangible assets	0	24	0	24	0	24
Acquisition of businesses	-1	0	-70	-208	-70	-208
Divestment of businesses	-	17	-	17	-	17
Investing activities, discontinued operations	-	-	-	-6	-	-6
Cash flow before financing	83	150	179	-64	150	-93
Financing activities	-86	-153	-168	-211	-128	-171
Financing activities, discontinued operations	-	-	-	268	-	268
Cash flow for the period	-3	-3	11	-7	22	4
Cash and cash equivalents at the beginning of the period*	80	57	67	63*	55	63*
Cash flow for the period	-3	-3	11	-7	22	4
Exchange-rate differences in cash and cash equivalents	0	1	-1	-1	0	0
Cash and cash equivalents at the end of the period	77	55	77	55	77	67

* Includes cash and cash equivalents in discontinued operations

Compilation of key financial ratios

KEY FINANCIAL RATIOS	R12 months
MSEK	31 December 2018	31 December 2017	31 March 2018
Revenue	3,910	3,841	3,833
EBITA	245	217	224
EBITA margin, percent	6.3	5.6	5.8
Operating profit, MSEK	233	210	216
Operating margin, percent	6.0	5.5	5.6
Profit after financial items, MSEK	213	192	192
Net profit, MSEK	171	154	158
Profit margin, percent	5.4	5.0	5.0
Return on working capital (P/WC), percent	22	20	20
Return on capital employed, percent	9	7	8
Return on equity, percent	11	8	9
Operational net loan liability (closing balance), MSEK	282	337	370
Equity (closing balance), MSEK	1,609	1,521	1,559
Equity/assets ratio, percent	44	43	43
Number of employees at the end of the period	1,030	1,078	1,028
Key per-share data
Earnings, SEK	6.35	5.50	5.70
Earnings after dilution, SEK	6.35	5.50	5.70
Cash flow from operating activities, SEK	10.30	5.80*	3.90*
Equity, SEK	59.55	54.15	56.10
Share price, SEK	84.70	86.00	84.70

* Key financial ratios refer to items including discontinued operations.

Parent Company summary

INCOME STATEMENT	3 months		9 months		R12 months	Full-year
MSEK	Oct-Dec 2018	Oct-Dec 2017	Apr-Dec 2018	Apr-Dec 2017	Jan-Dec 2018	2017/2018
Revenue	8	7	22	23	24	25
Other operating income	-	0	-	0	0	0
Total operating income	8	7	22	23	24	25
Operating expenses	-11	-6	-27	-29	-36	-38
Operating profit/loss	-3	1	-5	-6	-12	-13
Financial income and expenses	8	7	25	23	32	30
Profit after financial items	5	8	20	17	20	17
Appropriations	-	-	-	-	14	14
Profit before taxes	5	8	20	17	34	31
Taxes	-1	-2	-4	-4	-7	-7
Net profit	4	6	16	13	27	24

				R12
STATEMENT OF COMPREHENSIVE INCOME	3 months		9 months		months	Full-year
	Oct-Dec	Oct-Dec	Apr-Dec	Apr-Dec	Jan-Dec
MSEK	2018	2017	2018	2017	2018	2017/2018
Net profit	4	6	16	13	27	24
Other comprehensive income for the period
Components that will not be reclassified to net profit	-	-	-	-	-	-
Fair value changes for the year in
cash-flow hedges	16	2	15	-2	7	-10
Taxes attributable to other comprehensive income	-4	-1	-3	1	-2	2
Other comprehensive income for the period	12	1	12	-1	5	-8
Total comprehensive income for the period	16	7	28	12	32	16

BALANCE SHEET

MSEK	31 December 2018	31 December 2017	31 March 2018
Assets
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Financial non-current assets	2,341	2,328	2,333
Current receivables	288	393	530
Cash and cash equivalents	0	1	0
Total assets	2,629	2,722	2,863
Equity, provisions and liabilities
Equity	1,311	1,346	1,349
Untaxed reserves	226	264	226
Provisions	43	44	44
Non-current liabilities	125	170	130
Current liabilities	924	898	1,114
Total equity, provisions and liabilities	2,629	2,722	2,863

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.

Bergman & Beving measures financial instruments at fair value or cost in the balance sheet depending on their classification. In addition to items in the financial net debt, financial instruments also include accounts receivable and accounts payable. According to IFRS 7, financial instruments measured at fair value in the balance sheet are included in level 2 of the fair value hierarchy. The carrying amounts for financial assets and liabilities correspond to fair value in all material respects.

The same accounting policies and bases of judgement have been applied in this Interim Report as in the Annual Report for 2017/2018.

For the current year, all figures in the income statement and balance sheet refer to continuing operations. In the comparative periods, all figures in the income statement and balance sheet refer to continuing operations unless otherwise stated. Momentum Group, which was distributed and listed in the first quarter of 2017, is reported as discontinued operations and thus included in certain key ratios in the comparative period.

New or amended accounting standards which take effect in 2018 or later

IFRS has issued new standards (IFRS 9 and IFRS 15) that took effect on 1 January 2018 and have been applied by Bergman & Beving as of 1 April 2018. IFRS has issued a new standard (IFRS 16) that will take effect on 1 January 2019 and will be applied by Bergman & Beving as of 1 April 2019. These standards are described in more detail in Note 1 Accounting policies of the Annual Report for 2017/2018. A brief description of the effects for Bergman & Beving as of 1 April 2018 and 1 April 2019, respectively, is presented below.

IFRS 9 Financial instruments

Bergman & Beving's accounts receivable generally relate to customers with a good payment capacity, which is taken into account in the provision for expected credit losses. The new standard will entail no translation effects for Bergman & Beving in this respect and thus there is no need to adjust equity at the beginning of the 2018/2019 financial year.

Since Bergman & Beving applies hedge accounting according to the previous rules of IAS 39, the introduction of IFRS 9 is not expected to have any impact in this regard. Nor will the classification of financial instruments according to IFRS 9 have any impact on the Group's reporting. The new standard will thus have no impact on equity at the beginning of the 2018/2019 financial year.

IFRS 15 Revenue from Contracts with Customers

Bergman & Beving's revenue is mainly derived from sales of goods with a marginal share derived from sales of services. With respect to sales of both goods and services, risk and control are transferred to the buyer upon delivery. Sales are made on normal credit terms and Bergman & Beving does not offer any other financing. Bergman & Beving is always the principal during the supply process. Accordingly, revenue can be recognised immediately upon delivery. The new standard will entail no translation effects for Bergman & Beving and thus there is no need to adjust equity at the beginning of the 2018/2019 financial year.

IFRS 16 Leases

As an operational lessee, Bergman & Beving will be affected by the implementation of IFRS 16. Bergman & Beving has carried out a preliminary assessment of the effects of IFRS 16 and will continue working on this analysis in 2019. Monetary calculations of the effect of IFRS 16 and the choice regarding transitional methods and application of exemption rules have not yet been concluded. The information provided in Note 26 of the Annual Report for 2017/2018 concerning operational leases gives an indication of the nature and extent of the leases that exist at present.

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.

					R12
	3 months		9 months		months	Full-year
MSEK	Oct-Dec 2018	Oct-Dec 2017	Apr-Dec 2018	Apr-Dec 2017	Jan-Dec 2018	2017/2018
Sweden	404	432	1,216	1,302	1,606	1,692
Norway	293	245	856	756	1,141	1,042
Finland	72	90	249	262	322	336
Other countries	225	187	629	553	841	763
Revenue	994	954	2,950	2,873	3,910	3,833

3. Risks and uncertainties

During the financial year, no significant changes occurred with respect to risks and uncertainties, for either the Group or the Parent Company. For information about the Group's risks and uncertainties, refer to page 31 of Bergman & Beving's Annual Report for 2017/2018.

4. 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.

5. Alternative performance measures

Bergman & Beving AB 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			9 months
Percentage change in revenue for:	Oct-Dec 2018	Oct-Dec 2017	Apr-Dec 2018	Apr-Dec 2017
Comparable units in local currency	-0.6	-6.1	-2.2	-8.9
Currency effects	2.2	-1.2	2.7	0.2
Acquisitions/divestments	2.6	5.6	2.2	8.9
Total – change	4.2	-1.7	2.7	0.2

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.

					R12
	3 months		9 months		months	Full-year
	Oct-Dec	Oct-Dec	Apr-Dec	Apr-Dec	Jan-Dec
MSEK	2018	2017	2018	2017	2018	2017/2018
EBITA Depreciation and amortisation in connection with	64	55	192	171	245	224
acquisitions	-3	-2	-10	-6	-12	-8
Operating profit	61	53	182	165	233	216

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	Jan-Dec 2018	Jan-Dec 2017	2017/2018
EBITA (P)	245	217	224
Average working capital (WC)
Inventories	884	876	883
Accounts receivable	719	733	730
Accounts payable	-497	-502	-496
Total – average WC	1,106	1,107	1,117
P/WC, percent	22	20	20

6. Discontinued operations

On 14 June 2017, an Extraordinary General Meeting of Shareholders resolved to distribute all of Bergman & Beving's shares in Momentum Group to the shareholders of Bergman & Beving AB, meaning that for each Class A share in Bergman & Beving the shareholders received one Class A share in Momentum Group and for each Class B share in Bergman & Beving the shareholders received one Class B share in Momentum Group. The first day of trading in Momentum Group shares on Nasdaq Stockholm took place on 21 June.

Profit from the discontinued operations amounted to MSEK 1,077, which pertains to the difference between the market value of Momentum Group AB of MSEK 2,102 (based on the average trading price on the first day of trading) and the consolidated value of MSEK 1,025. The consolidated value mainly pertained to goodwill and other current assets. The capital gain includes transaction costs of MSEK 16. For more information on discontinued operations, refer to Note 31 Discontinued operations in Bergman & Beving's Annual Report for 2017/2018.

INCOME STATEMENT

MSEK	2018/2019	2017/2018
Revenue	-	917
Other operating income	-	1
Total operating income	-	918
Cost of goods sold	-	-579
Personnel costs	-	-202
Depreciation, amortisation and impairment losses	-	-5
Other operating expenses	-	-114
Total operating expenses	-	-900
Operating profit	-	18
Profit from discontinued operations	-	1,077
Financial income	-	0
Financial expenses	-	-1
Net financial items	-	1,076
Profit after financial items	-	1,094
Taxes	-	-3
Net profit from discontinued operations	-	1,091
Earnings per share before dilution	-	39.25
Earnings per share after dilution	-	39.20
CASH-FLOW STATEMENT
MSEK	2018/2019	2017/2018
Cash flow from operating activities	-	-26
Cash flow from investing activities	-	-6
Cash flow from financing activities	-	268

Cash flow for the period, discontinued operations	-	236

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 attributable to Parent Company shareholders 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 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

• Bergman & Beving develops, acquires and markets leading brands for the manufacturing and construction sectors.
• The subsidiaries in the Group are operated with decentralised business responsibility, with a focus on simplicity, responsibility and freedom.
• We offer the subsidiaries financial resources and competence within brand development.
• Bergman & Beving currently comprises numerous strong brands for the manufacturing and construction sectors.
• Through our brands, we are represented in more than 25 countries with over 5,000 sales outlets.

Strategy

Bergman & Beving aims to be a leader in selected niches in the manufacturing and construction sectors, where its brands and high level of expertise are important differentiators.

Bergman & Beving strives to build and develop a portfolio comprising a wide variety of individual brands that achieve leading positions in their selected niches.

The following units / brands are included in the Company's divisions: