Bergman & Beving

Interim / Quarterly Report • Jul 20, 2018

Interim Report 1 April - 30 June 2018

First quarter (1 April-30 June 2018)

• Revenue amounted to MSEK 1,037 (1,017).
• EBITA increased 14 percent to MSEK 64 (56), corresponding to an EBITA margin of 6.2 percent (5.5).
• Operating profit amounted to MSEK 61 (54), corresponding to an operating margin of 5.9 percent (5.3).
• Net profit totalled MSEK 42 (37).
• Earnings per share amounted to SEK 1.55 (1.30).
• Cash flow from operating activities totalled MSEK 141 (2).
• Two acquisitions were conducted during the period, with total annual revenue of approximately MSEK 90.
• The Board of Directors has proposed that the Annual General Meeting reduce the number of shares outstanding by 1,000,000.

		3 months	R12 months	Full-year
MSEK	Apr-Jun 2018	Apr-Jun 2017	∆ %	Jul 2017- Jun 2018	2017/2018
Revenue	1,037	1,017	2	3,853	3,833
EBITA	64	56	14	232	224
EBITA margin, %	6.2	5.5		6.0	5.8
Net profit (after taxes)	42	37	14	163	158
Earnings per share before dilution, SEK	1.55	1.30	19	5.95	5.70
Earnings per share after dilution, SEK	1.55	1.30	19	5.95	5.70
P/WC, %				21	20
Equity/assets ratio, %				43	43
Number of employees at the end of the period	1,034	1,096	-6	1,034	1,028

CEO's comments

Positive start to the year

The Group continued to deliver a positive trend during the first quarter of the year. We achieved favourable earnings growth and our operating margin strengthened. We continued to implement measures to achieve earnings growth and increased profitability at the same time as our businesses generated a strong cash flow.

We experienced favourable conditions in our main markets in the Nordic region, albeit with a certain level of hesitancy in the Swedish construction market. This hesitancy was mainly due to a decline in new residential construction. At the same time, the Norwegian construction market displayed a positive trend. The economic situation in the industrial sector remained strong, primarily driven by the Swedish and Finnish markets.

We continue to focus on development, sales and marketing of our proprietary brands and the share increased to 61 percent. In terms of the development of our divisions, it feels particularly gratifying to highlight Workplace Safety, which delivered both strong earnings growth and an improved operating margin. It is also positive that the operating margin in Building Materials was restored to a level well above 10 percent. The restructuring of Tools & Consumables is continuing, with a focus on measures to improve profitability within the subsidiary Luna. In parallel, we are focusing on developing other companies in the division.

Acquisitions

Acquisitions are an important part of our strategy for growth, and two companies were acquired during the quarter: BVS Brannvernsystemer AS and Belano Maskin AB. The companies contribute annual revenue of approximately MSEK 90. With the acquisition the Building Materials division strengthened its position in passive fire protection, while Tools & Consumables improved its position in the attractive niche of construction and ventilation sheet-metal workers.

Pontus Boman President & CEO

Profit and revenue

First quarter (April-June 2018)

Revenue rose by 2 percent to MSEK 1,037 (1,017). The organic growth amounted to -3 percent and acquisitions affected by +2 percent. Exchange rate fluctuations positively affected net sales with 3 percent.

The phaseout of volumes with lower margins continued as expected while the share of proprietary product brands increased.

Operating profit for the first quarter amounted to MSEK 61 (54), corresponding to an operating margin of 5.9 percent (5.3). Stronger gross margins as a result of a higher share of proprietary product brands resulted in improved earnings. Profit for the first quarter was impacted positively by items affecting comparability amounting to MSEK 2.

Profit after financial items totalled MSEK 56 (48) and net profit amounted to MSEK 42 (37), corresponding to earnings per share of SEK 1.55 (1.30).

Exchange-rate translation effects had an impact of MSEK +2 (+2) on operating profit.

Performance by division

		R12 months	Full-year
	Apr-Jun	Apr-Jun		Jul 2017-
MSEK	2018	2017	∆ %	Jun 2018	2017/2018
Revenue
Building Materials	302	286	6	1,025	1,009
Workplace Safety	351	365	-4	1,303	1,317
Tools & Consumables	386	362	7	1,528	1,504
Group-wide/eliminations	-2	4		-3	3
Total revenue	1,037	1,017	2	3,853	3,833
Operating profit
Building Materials	35	38	-8	89	92
Workplace Safety	34	15	127	122	103
Tools & Consumables	2	-15	n.a.	39	22
Group-wide/eliminations	-7	18		-18	7
EBITA	64	56	14	232	224
Depreciation and amortisation in connection with
acquisitions	-3	-2		-9	-8
Operating profit	61	54	13	223	216

Building Materials

Revenue in Building Materials increased by 6 percent to MSEK 302 (286) and EBITA amounted to MSEK 35 (38) during the quarter. Profit for the first quarter of the preceding year was impacted negatively by items affecting comparability amounting to approximately MSEK -2.

Demand from customers in the construction sector was stable, despite a later start to the season. The Swedish market displayed a certain degree of hesitancy, while demand in the Norwegian market was positive. Despite weaker demand from customers in Marine & Offshore, the activity level in the customer segment increased.

Workplace Safety

Revenue in Workplace Safety declined by -4 percent to MSEK 351 (365) and EBITA amounted to MSEK 34 (15) during the quarter. Profit for the first quarter of the preceding year was impacted negatively by items affecting comparability amounting to approximately MSEK -9.

Demand from customers in the industrial sector remained favourable, with growing demand for personal protective equipment. The gross margin improved as sales of our proprietary brands increased. Several of the division's brands displayed a continuous improvement in terms of their market position. In order to increase focus on the brands and create a foundation for future growth, several independent business units have been created.

Tools & Consumables

Revenue in Tools & Consumables for the first quarter amounted to MSEK 386 (362) and EBITA to MSEK 2 (-15). Profit for the first quarter of the preceding year was impacted negatively by items affecting comparability amounting to approximately MSEK -12.

Demand from customers in the industrial sector remained favourable, with a strong industrial economy in both Sweden and Finland. Although the structural measures implemented in the subsidiary Luna began to generate results during the quarter, efforts to improve profitability continued. The adjustment of Luna's logistics management had a negative impact on earnings, while other units in the division performed as expected.

Group-wide and eliminations

Group-wide expenses for the first quarter amounted to MSEK -7 (18). Profit for the first quarter of the preceding year was impacted positively by items affecting comparability amounting to MSEK 24.

The Parent Company's revenue amounted to MSEK 7 (9) and profit after financial items to MSEK 5 (5). 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 1,034, compared with 1,028 at the beginning of the financial year. As a result of acquisitions, the number of employees increased by 25 during the period, while the number of employees in other operations was reduced by 19.

Corporate acquisitions

In early April, the Building Materials division acquired all shares in BVS Brannvernsystemer A/S (BVS) with 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.

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

The following analysis is preliminary. No acquisition-related expenses were recognised during the period.

Fair value of
acquired assets and liabilities	MSEK
Customer relations	9
Other non-current assets	2
Other assets	34
Deferred tax liability, net	2
Non-current liabilities	5
Current liabilities	8
Acquired net assets	31
Goodwill	55
Purchase consideration paid for shares	84
Additional purchase consideration Less: Cash and cash equivalents in acquired	2
companies	-17
Redemption of interest-bearing liabilities	-2
Net change in cash and cash equivalents	-69

		Reven	No. of
Acquisitio		ue,	employee
n	Closing	MSEK*	s*	Division
BVS,				Building
Norway	April 2018	22	15	Materials
Belano,				Tools &
Sweden	May 2018	65	10	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 21 percent (20). The return on capital employed was 9 percent (8 at the beginning of the year) and the return on equity was 10 percent (9 at the beginning of the year).

Cash flow from operating activities for the period amounted to MSEK 141 (2), with cash flow for the year-earlier period including discontinued operations. Funds tied up in working capital decreased by MSEK 50. During the period, inventories declined by MSEK 34 and operating receivables increased by MSEK 18. Operating liabilities rose by MSEK 34.

Cash flow for the period was also impacted in an amount of MSEK -10 (-8) pertaining to investments and divestments of non-current assets and an amount of MSEK -69 (-188) pertaining to the acquisition and divestment of operations.

The Group's operational net loan liability at the end of the period amounted to MSEK 318 (201), excluding pension obligations of MSEK 634 (568). Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 482 (702).

The equity/assets ratio was 43 percent, which remained unchanged since the beginning of the year.Equity per share amounted to SEK 58.05, compared with SEK 56.10 at the beginning of the year. Equity per share after dilution amounted to SEK 58.05, 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 22 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 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	1,062,347	10,623,470	3.7	28.0
Class B shares, 1 vote per share Total number of shares before	27,374,069	27,374,069	96.3	72.0
repurchasing	28,436,416	37,997,539	100.0	100.0
Of which, repurchased Class B shares Total number of shares after	-1,426,706		5.0	3.8
repurchasing	27,009,710

The share price on 30 June 2018 was SEK 94.70. The average number of treasury shares was 1,426,706 during the period and 1,426,706 at the end of the period. The average purchase price for the repurchased shares was SEK 102.60 per share.

CALL OPTION PROGRAMMES

		Corresponding	% of total	Original redemption
Outstanding programmes	No. of options	no. of shares	shares	price	Redemption period
Call option programme 2017/2021	160,000	160,000	0.6%	118.10	14 Sep 2020-11 Jun 2021

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

The 2014/2018 Call Option programme ended in June without any options being redeemed.

Proposals to the Annual General Meeting

The Board of Directors has proposed that the Annual General Meeting reduce the number of shares outstanding by 1,000,000. Refer to the notice of the Annual General Meeting published on 19 July.

Stockholm, 20 July 2018

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 person set out above, at 7:45 a.m. CET on 20 July 2018.

Dates for forthcoming financial information

23 August 2018 The 2018 Annual General Meeting will be held at IVA, Grev Turegatan 16 in Stockholm at 4:30 p.m.

26 October 2018 Six-Month Report 1 April-30 September 2018

8 February 2019 Interim Report 1 April-31 December 2018

Contact information

Pontus Boman, President & CEO, Tel: +46 10 454 77 00 Peter Schön, CFO, Tel: +46 70 399 89 99 Visit www.bergmanbeving.com to download reports and press releases.

Reporting by quarter

	2018/2019		2017/2018			2016/2017
MSEK	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue Building Materials	302	270	209	244	286	276	220	231	277
Workplace Safety	351	312	349	291	365	314	335	284	354
Tools & Consumables	386	378	397	367	362	381	416	370	381
Group-wide/eliminations	-2	0	-1	0	4	-3	-1	-1	0
Total revenue	1,037	960	954	902	1,017	968	970	884	1,012
Operating profit
Building Materials	35	25	6	23	38	31	21	31	36
Workplace Safety	34	27	39	22	15	26	27	24	31
Tools & Consumables	2	4	15	18	-15	10	18	22	16
Group-wide/eliminations	-7	-3	-5	-3	18	-21	-14	5	-3
EBITA	64	53	55	60	56	46	52	82	80
Depreciation and amortisation in connection with acquisitions	-3	-2	-2	-2	-2	-1	-1	0	0
Operating profit	61	51	53	58	54	45	51	82	80

Group summary

			R12
CONSOLIDATED INCOME STATEMENT	3 months months			Full-year
MSEK	Apr-Jun 2018	Apr-Jun 2017	Jul 2017- Jun 2018	2017/2018
Revenue	1,037	1,017	3,853	3,833
Other operating income	0	5	-2	3
Total operating income	1,037	1,022	3,851	3,836
Cost of goods sold	-606	-542	-2,260	-2,196
Personnel costs	-190	-219	-689	-718
Depreciation, amortisation and impairment losses	-7	-6	-26	-25
Other operating expenses	-173	-201	-653	-681
Total operating expenses	-976	-968	-3,628	-3,620
Operating profit	61	54	223	216
Financial income and expenses	-5	-6	-23	-24
Profit after financial items	56	48	200	192
Taxes	-14	-11	-37	-34
Net profit	42	37	163	158
Net profit from discontinued operations	-	1,091	-	1,091
Net profit	42	1,128	163	1,249
Of which, attributable to Parent Company shareholders	42	1,128	163	1,249
Earnings per share before dilution, SEK	1.55	39.90	5.95	44.95
- of which, continuing operations	1.55	1.30	5.95	5.70
Earnings per share after dilution, SEK	1.55	39.90	5.95	44.90
- of which, continuing operations	1.55	1.30	5.95	5.70
Number of shares outstanding before dilution, '000	27,010	28,265	27,010	27,010
Weighted number of shares before dilution, '000	27,010	28,265	27,471	27,785
Weighted number of shares after dilution, '000	27,010	28,272	27,471	27,816

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Apr-Jun	Apr-Jun	Jul 2017-
MSEK	2018	2017	Jun 2018	2017/2018
Net profit	42	1,128	163	1,249
Remeasurement of defined-benefit pension plans	-13	-10	-62	-59
Tax attributable to components that will not be reclassified	3	2	14	13
Components that will not be reclassified to net profit	-10	-8	-48	-46
Translation differences	11	-11	20	-2
Fair value changes for the year in cash-flow hedges	-9	-3	-16	-10
Tax attributable to components that will be reclassified	2	1	3	2
Components that will be reclassified to net profit	4	-13	7	-10
Other comprehensive income for the period	-6	-21	-41	-56
Total comprehensive income for the period	36	1,107	122	1,193
Of which, attributable to Parent Company shareholders	36	1,107	122	1,193

CONSOLIDATED BALANCE SHEET

MSEK	30 June 2018	30 June 2017	31 March 2018
Assets
Intangible non-current assets	1,640	1,515	1,569
Tangible non-current assets	91	150	88
Financial non-current assets	2	3	2
Deferred tax assets	81	73	81
Inventories	854	892	879
Accounts receivable	809	779	790
Other current receivables	149	179	157
Cash and cash equivalents	98	76	67
Total assets	3,724	3,667	3,633
Equity and liabilities
Equity	1,595	1,730	1,559
Non-current interest-bearing liabilities	190	200	130
Provisions for pensions	634	568	623
Other non-current liabilities and provisions	114	128	115
Current interest-bearing liabilities	226	77	307
Accounts payable	521	517	497
Other current liabilities	444	447	402
Total equity and liabilities	3,724	3,667	3,633
Operational net loan liability	318	201	370

CONSOLIDATED STATEMENT OF EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS

MSEK	30 June 2018	30 June 2017	31 March 2018
Opening equity	1,559	2,724	2,724
Dividend	-	-	-141
Exercise and purchase of options for repurchased shares	-	1	3
Repurchase of own shares	-	-	-118
Distribution of Momentum Group	-	-2,102	-2,102
Total comprehensive income for the period	36	1,107	1,193
Closing equity	1,595	1,730	1,559

CONSOLIDATED CASH-FLOW STATEMENT	3 months		R12 months	Full-year
MSEK	Apr-Jun 2018	Apr-Jun 2017	Jul 2017- Jun 2018	2017/2018
Operating activities before changes in working capital	91	19	199	125
Changes in working capital	50	9	50	10
Cash flow from operating activities, discontinued operations	-	-26	-	-26
Cash flow from operating activities	141	2	249	109
Investments in intangible and tangible assets	-10	-8	-31	-29
Proceeds from sale of intangible and tangible assets	0	0	24	24
Acquisition of businesses	-69	-188	-89	-208
Divestment of businesses	-	-	17	17
Investing activities, discontinued operations	-	-6	-	-6
Cash flow before financing	62	-200	170	-93
Financing activities	-33	-57	-148	-171
Financing activities, discontinued operations	-	268	-	268
Cash flow for the period	29	11	22	4
Cash and cash equivalents at the beginning of the period*	67	63*	76	63*
Cash flow for the period	29	11	22	4
Exchange-rate differences in cash and cash equivalents	2	2	0	0
Cash and cash equivalents at the end of the period	98	76	98	67

* Includes cash and cash equivalents in discontinued operations

Compilation of key financial ratios

	R12 months
	30 June 2018	30 June 2017	31 March 2018
Revenue, MSEK	3,853	3,839	3,833
EBITA, MSEK	232	236	224
EBITA margin, %	6.0	6.1	5.8
Operating profit, MSEK	223	232	216
Operating margin, %	5.8	6.0	5.6
Profit after financial items, MSEK	200	223	192
Net profit, MSEK	163	172	158
Profit margin, %	5.2	5.8	5.0
Return on working capital (P/WC), %	21	13	20
Return on capital employed, %	9	7	8
Return on equity, %	10	7	9
Operational net loan liability (closing balance), MSEK	318	201	370
Equity (closing balance), MSEK	1,595	1,730	1,559
Equity/assets ratio, %	43	47	43
Number of employees at the end of the period	1,034	1,096	1,028
Key per-share data
Earnings, SEK	5.95	6.10	5.70
Earnings after dilution, SEK	5.95	6.10	5.70
Cash flow from operating activities, SEK	7.60	10,70*	3.90*
Equity, SEK	58.05	61.40	56.10
Share price, SEK	94.70	124.25	84.70

* Key financial ratios refer to items including discontinued operations

Parent Company summary

INCOME STATEMENT	3 months		R12 months	Full-year
MSEK	Apr-Jun 2018	Apr-Jun 2017	Jul 2017- Jun 2018	2017/2018
Revenue	7	9	23	25
Other operating income	0	0	0	0
Total operating income	7	9	23	25
Operating expenses	-10	-14	-34	-38
Operating loss	-3	-5	-11	-13
Financial income and expenses	8	10	28	30
Profit after financial items	5	5	17	17
Appropriations	-	-	14	14
Profit before taxes	5	5	31	31
Taxes	-1	-1	-7	-7
Net profit	4	4	24	24

STATEMENT OF COMPREHENSIVE INCOME		3 months	R12 months	Full-year
MSEK	Apr-Jun 2018	Apr-Jun 2017	Jul 2017- Jun 2018	2017/2018
Net profit	4	4	24	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	-9	-3	-16	-10
Taxes attributable to other comprehensive income	2	1	3	2
Other comprehensive income for the period	-7	-2	-13	-8
Total comprehensive income for the period	-3	2	11	16

BALANCE SHEET

MSEK	30 June 2018	30 June 2017	31 March 2018
Assets
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Financial non-current assets	2,357	2,414	2,333
Current receivables	298	300	530
Cash and cash equivalents	0	0	0
Total assets	2,655	2,714	2,863
Equity, provisions and liabilities
Equity	1,346	1,594	1,349
Untaxed reserves	226	264	226
Provisions	44	44	44
Non-current liabilities	190	260	130
Current liabilities	849	552	1,114
Total equity, provisions and liabilities	2,655	2,714	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 remaining operations. In comparative periods, all figures in the income statement and balance sheet refer to remaining operations unless otherwise stated. Momentum Group was distributed and listed in the first quarter of 2017 and 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 2018/2019. 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.

		3 months	R12 months	Full-year
MSEK	Apr-Jun 2018	Apr-Jun 2017	Jul 2017- Jun 2018	2017/2018
Sweden	438	476	1,665	1,682
Norway	292	260	1,061	1,029
Finland	98	91	351	345
Other countries	209	191	775	778
Revenue	1,037	1,017	3,853	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. T

	First quarter			3 months
Percentage change in revenue for:	Apr-Jun 2018	Apr-Jun 2017	Apr-Jun 2018	Apr-Jun 2017
Comparable units in local currency	-5.1	-9.3	-3.1	-14.1
Currency effects	2.6	1.6	2.6	1.6
Number of trading days	2.1	-4.8	2.1	-4.8
Acquisitions/divestments	2.4	13.0	2.4	13.0
Total – change	2.0	0.5	2.0	0.5

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 2018	Apr-Jun 2017	Jul 2017- Jun 2018	2017/2018
EBITA	64	56	232	224
Depreciation and amortisation in connection with acquisitions	-3	-2	-9	-8
Operating profit	61	54	223	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	Jul 2017- Jun 2018	2017/2018
EBITA (P)	232	224
Average working capital (WC)
Inventories	884	883
Accounts receivable	728	730
Accounts payable	-490	-496
Total – average WC	1,122	1,117
P/WC, %	21	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
CONSOLIDATED 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 brands are included in the Company's divisions: