Elanders

Quarterly Report • Jul 13, 2017

Press release from Elanders AB (publ) 2017-07-13

First six months

• Net sales increased by 112 percent to MSEK 4,403 (2,077).
• EBITA increased to MSEK 214 (134), which was an improvement in the result by 60 percent.
• The operating result increased to MSEK 182 (122).
• The result before tax increased to MSEK 143 (111).
• The net result increased to MSEK 107 (80) or SEK 3.02 (2.85) per share.
• Operating cash flow amounted to MSEK -113 (68), of which MSEK -262 (0) consisted of increased working capital in the form of accounts receivable due to the settlement of a factoring debt during the first quarter. Cleared of this one-off item and the purchase price of acquisitions, operating cash flow was MSEK 149 (101).
• The increase in net sales and the result is primarily due to the acquisition of LGI, which was consolidated into the Elanders Group at the end of July 2016.

Second quarter

• Net sales were MSEK 2,264 (1,079), which was an increase of 110 percent.
• EBITA increased to MSEK 108 (72), which was an improvement in the result by 50 percent.
• The operating result increased to MSEK 93 (66).
• The result before tax increased to MSEK 73 (61).
• The net result increased to MSEK 54 (45) or SEK 1.52 (1.59) per share.
• Operating cash flow amounted to MSEK 47 (64).

COMMENTS BY THE CEO

During the second quarter the business developed more or less according to plan. Supply Chain Solutions performed a little better while Print & Packaging Solutions and e-Commerce Solutions did not do as well as expected. Primarily the month of April surprisingly showed a result lower than expected, mainly in our European operations. Some recovery was made in May and June.

We were pleased to see that the positive trend in Supply Chain Solutions continued with a growing demand from both existing and new customers. Growth was primarily generated in the customer segments Automotive, Electronics and Fashion & Lifestyle. The new acquisition LGI, which was consolidated into the Group at the end of July 2016, achieved all of 6 percent organic growth during the first six months. Not including LGI and exchange rate fluctuations the increase in net sales in Supply Chain Solutions was 1 percent. We gained a good deal of new business in the second quarter. One deal, for example, is with one of our big customers that has a well-known brand name in Fashion & Lifestyle. This contract revolves around providing an omnichannel solution, in which we support our customer with order management, warehousing, distribution and product returns, to both consumers and retail chains. We have also secured a number of strategically important projects to new customers in Automotive which will generate initial start-up costs, foremost in the third and fourth quarters, before volumes land at normal levels. In general, we continue to be very active regarding new sales and we are involved in several different requests for proposals held by both existing and new customers.

Sales in Print & Packaging Solutions were poorer than anticipated due to less demand from existing customers and lower new sales. This means net sales are now on last year's level. Price pressure on the market is intense and demand for offset printing steadily diminishes but at the same time we are shifting to more digital print and packaging production. Our multi-site in Stuttgart, with combined print and supply chain management services, is beginning to come together and we expect this facility to help us compensate for the lower volumes in traditional print. We will also continue to streamline and carry out measures to reduce costs.

Our strategic review process of e-Commerce Solutions has been delayed by the negative development in the business area in the first quarter continuing into the second. The drop in sales and the result during the first half-year requires that we now instead focus on ensuring sales and results in the fourth quarter where normally all earning occurs.

It is becoming more and more apparent that the strategic shift Elanders' initiated several years ago was necessary. Elanders has transformed from a graphic group to a global supply chain management company. We can create growth and grow organically within Supply Chain Solutions, a feat much more difficult to achieve in our second largest business area, Print & Packaging Solutions, due to the overcapacity characterizing the market.

Magnus Nilsson President and Chief Executive Officer

FINANCIAL OVERVIEW
--------------------	--

	First six months			Second quarter
MSEK	2017	2016	2015	2017	2016	2015
Net sales	4,403	2,077	2,072	2,264	1,079	1,066
Operating expenses	-4,221	-1,955	-1,955	-2,171	-1,013	-1,003
Operating result	182	122	117	93	66	63
Net financial items	-39	-10	-18	-20	-5	-8
Result before tax	143	111	99	73	61	55

GROUP

Our business

Elanders is a global supplier of integrated solutions in the areas supply chain management, print & packaging and e-commerce. The Group operates in approximately 20 countries on four continents. Our most important markets are China, Germany, Singapore, Sweden, United Kingdom and the USA. The major customers are active in Automotive, Electronics, Fashion & Lifestyle, Industrial and Health Care & Life Science.

Net sales and result

First six months

Net sales for the first six months increased by MSEK 2,326 to MSEK 4,403 (2,077) compared to the same period last year. This increase is primarily due to the new acquisition LGI which has been consolidated into the Elanders Group since the end of July 2016. Cleared of exchange rate fluctuations and the acquisition of LGI, net sales grew by 1% foremost due to Supply Chain Solutions. EBITA, i.e. the operating result adjusted for amortization on assets identified in conjunction with acquisitions, increased to MSEK 214 (134), which corresponded to an EBITA margin of 4.9 (6.5)%. The decrease in the EBITA margin stems primarily from consolidating LGI which historically has had a

lower operating margin than Elanders. The reason for this is that in addition to contract logistics LGI also offers transportation and freight services, areas where margins are lower. One-off items that affected EBITA negatively were during the period on the same level as the comparable period, i.e. around MSEK 5.

Second quarter

Net sales during the quarter increased by MSEK 1,185 to MSEK 2,264 (1,079) compared to the same period last year. Cleared of exchange rate fluctuations and the acquisition of LGI there was no organic growth in net sales. The organic growth in Supply Chain Solutions, excluding LGI, could not compensate for the decrease in sales in the other two business areas. EBITA, i.e. the operating result adjusted for amortization on assets identified in conjunction with acquisitions, increased to MSEK 108 (72), which corresponded to an EBITA margin of 4.8 (6.7)%. One-off items that affected EBITA negatively were during the period on the same level as the comparable period, i.e. around MSEK 5.

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 six months		Second quarter		Last	Full year
Supply Chain Solutions	2017	2016	2017	2016	12 months	2016
Net sales, MSEK	3,290	981	1,712	521	6,307	3,998
EBITA, MSEK	176	87	96	48	375	283
EBITA-margin, %	5.3	8.9	5.6	9.3	6.0	7.1
Operating result, MSEK	152	83	84	46	327	258
Operating margin, %	4.6	8.4	4.9	8.8	5.2	6.4
Average number of employees	4,904	1,409	4,933	1,413	4,579	2,832

The positive trend continued in business area Supply Chain Solutions and the business area grew organically by 2% during the second quarter, not including LGI, which was consolidated into the Group at the end of July 2016. LGI also reported organic growth over its comparable period with an increase of 6% during the first half-year and 7% during the second quarter.

Print & Packaging Solutions

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

Print & Packaging Solutions	First six months 2017	2016	Second quarter 2017	2016	Last 12 months	Full year 2016
Net sales, MSEK EBITA, MSEK	1,072 64	1,047 60	533 25	535 32	2,171 141	2,146 137
EBITA-margin, %	5.9	5.7	4.7	6.0	6.5	6.4
Operating result, MSEK	59	55	23	30	131	127
Operating margin, %	5.5	5.2	4.3	5.7	6.0	5.9
Average number of employees	1,521	1,676	1,520	1,632	1,555	1,632

The market for Print & Packaging Solutions continues to be characterized by tough price pressure and overcapacity on the market. Using constant exchange rates net sales in the business area contracted in the second quarter by 3%, mainly due to lower sales on the European market. The reduction in Europe was partially compensated by organic growth in the US where conversion of parts of the American operations into combined print and supply chain management facilities is driving growth in sales. Accumulated net sales for the first half-year increased by 2%.

e-Commerce Solutions

fotokasten, myphotobook and d|o|m are the Group's brands in e-Commerce. Through the technical solutions for e-commerce provided by d|o|m, fotokasten and myphotobook offer a broad range of photo products primarily to consumers.

e-Commerce Solutions	First six months 2017	2016	Second quarter 2017	2016	Last 12 months	Full year 2016
Net sales, MSEK	72	84	33	40	216	227
EBITA, MSEK EBITA-margin, %	-10 -13.2	2 2.0	-5 -14.3	0 -0.3	13 6.0	24 10.5
Operating result, MSEK	-12	-1	-6	-1	8	19
Operating margin, %	-16.2	-0.8	-17.2	-3.2	3.8	8.4
Average number of employees	66	63	69	62	65	63

The business area has substantial seasonal sales variations and the fourth quarter is by far the strongest.

Our strategic review process of e-Commerce Solutions has been delayed by the negative development in the business area in the first quarter continuing into the second. The decline in sales and the result during the first half-year requires that we now instead focus on ensuring sales and results in the fourth quarter where normally all earning occurs.

Important events during the period

As previously reported Elanders' subsidiary in California has been sued by a group of employees that demand indemnification because another employee from the same company installed a hidden camera in a changing room. They claim that the company knew or should have known about the situation. The company has denied any responsibility. Elanders has held negotiations with these employees in January and reached a settlement. Based on the result of the settlement another provision of around MSEK 30 was made, which affected the operating result for the fourth quarter of 2016. This dispute is now over and no further claims are expected.

Investments and depreciation

First six months

Net investments for the period amounted to MSEK 104 (40), of which acquisitions amounted to MSEK 0 (34). Depreciation, amortization and write-downs amounted to MSEK 125 (55).

Second quarter

For the quarter net investments amounted to MSEK 73 (-3) and depreciation and amortization to MSEK 63 (26).

Financial position, cash flow and financing

Group net debt per 30 June 2017 was MSEK 2,580 compared to MSEK 2,224 at the start of the year. Included in the net change is an increase of MEUR 27.5, equal to MSEK 262, which refers to a repayment of a factoring debt. A subsidiary previously used factoring as a finance form by transferring accounts receivable to a finance institute. This factoring debt has now been replaced with conventional bank credits. As a result of this repayment accounts receivable and net debt grew in equal amounts, which had a negative effect on cash flow from operating activities. Cleared of this item and exchange rate effects net debt increased by around MSEK 84 during the period.

Operating cash flow for the period amounted to MSEK -113 (68), of which -262 (0) consisted of increased working capital in the form of accounts receivable due to a repayment of a factoring debt. Cleared of this one-off effect and the purchase price of acquisitions, operating cash flow was MSEK 149 (101). For the second quarter the operating cash flow amounted to MSEK 47 (64).

Personnel

First six months

The average number of employees during the period was 6,502 (3,157), whereof 246 (275) in Sweden. At the end of the period the Group had 6,589 (3,101) employees, whereof 245 (277) in Sweden.

Second quarter

The average number of employees during the quarter was 6,532 (3,117), whereof 246 (274) in Sweden.

PARENT COMPANY

The parent company has provided intragroup services during the period. The average number of employees during the period was 11 (9) and at the end of the period 11 (9).

OTHER INFORMATION

Elanders' offer

Elanders offers global integrated solutions in the areas supply chain management, print & packaging and e-commerce. Elanders can take an overall responsibility for complex and global deliveries comprising procurement, warehousing, configuration, production and distribution. Our offer also includes order management, payment solutions and after sales services for our clients.

The services are provided by business-oriented employees. They use their expertise and our intelligent IT solutions to develop our customers' offers, which are often completely dependent on efficient product, component and service flows as well as traceability and information.

In addition to our offer to B2B markets the Group also sells photo products directly to consumers through its own brands fotokasten and myphotobook.

Goal and strategy

Elanders' overall goal is to be a leader in global solutions in supply chain management, print & packaging and e-commerce 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 2016. 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 2016.

Seasonal variations

The Group's net sales, and thereby income, are affected by seasonal variations. Historically the fourth quarter has been the strongest for Elanders before the acquisition of LGI.

Transaction with related parties

The following 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, 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

No significant events have occurred after the balance sheet date until the day this report was signed.

Forecast

No forecast is given for 2017.

Review and accounting principles

The company auditors have not reviewed this report. 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.

The primary alternative performance measures that are presented in this report are EBITDA, EBITA, return on capital employed, net debt and operating cash flow. Definitions of these performance measures are found on page 17 along with a reconciliation with financial information in accordance with IFRS on pages 15-16 in this report.

International Accounting Standards Boards (IASB) has issued new and revised standards, such as IFRS 9, IFRS 15, and IFRS 16. IFRS 9 "Financial Instruments" has a mandatory effective date 1 January 2018 and is not expected to have any significant effect on the Group financial reports. IFRS 15 "Revenue from Contracts with Customers" has mandatory effective date 1 January 2018. The current assessment by the company's management is that the standard will not entail any material difference on the Groups´ result. However, net sales and cost of products and services sold may be affected. IFRS 16 "Leases" has a mandatory effective date 1 January 2019. The new standard will affect primarily the accounting for the group's operating leases where there are large commitments in terms of rental contracts for premises and leasing of machinery and equipment, often with agreement period between 3-10 years. The current assessment by the company's management is that the new standard will have a significant effect on the Groups´ total assets and liabilities.

Conference call

In connection to the issuing of the Quarterly report for the second quarter 2017 Elanders will hold a Press and Analysts conference call on 13 July 2017 at 9:00 CET, hosted by President and CEO Magnus Nilsson and CFO Andréas Wikner. Please see below details in order to join the conference:

Sweden:	+46 (0)8 5065 3942
Germany:	+49 (0)69 2222 2018
UK:	+44 (0)330 336 9411
USA:	+1 719-457-1036

Participant code: 9972553

Agenda

Conference number is opened
Review of the quarterly report
Q&A
End of the conference

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

https://www.elanders.com/presentations

Financial calendar

Q3 2017 19 October 2017 Q4 2017 25 January 2018 Annual Report 2017 23 March 2018 Q1 2018 27 April 2018 Annual General Meeting 2018 27 April 2018

Declaration by the Board

The Board of Directors of Elanders AB (publ) hereby declares that this half-year report gives a true and fair view of the parent company's and Group's operations, financial position and result and describes significant risks and uncertainties that the parent company and companies within the Group are facing.

Mölnlycke, 13 July 2017

Carl Bennet
Chairman

Johan Stern Vice chairman Pam Fredman

Dan Frohm Erik Gabrielson Linus Karlsson

Cecilia Lager Anne Lenerius Caroline Sundewall

Marcus Olsson Eija Persson Magnus Nilsson President and CEO

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 P.O. Box 137,

President and CEO Chief Financial Officer (Company ID 556008-1621) 435 23 Mölnlycke, 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

MSEK	First six months 2017	2016	Second quarter 2017	2016	Last 12 months	Full year 2016
Net sales	4,403	2,077	2,264	1,079	8,611	6,285
Cost of products and services sold	-3,707	-1,639	-1,909	-857	-7,159	-5,091
Gross profit	696	438	355	222	1,452	1,194
Sales and administrative expenses	-544	-340	-275	-167	-1,085	-882
Other operating income	44	26	21	11	118	100
Other operating expenses	-15	-2	-8	-0	-80	-68
Operating result	182	122	93	66	405	344
Net financial items	-39	-10	-20	-5	-73	-44
Result after financial items	143	111	73	61	332	300
Income tax	-36	-31	-19	-16	-88	-83
Result for the period	107	80	54	45	244	217
Result for the period attributable to:
- parent company shareholders	107	80	54	45	244	217
Earnings per share, SEK 1) 2) 3)	3.02	2.85	1.52	1.59	7.36	7.35
Average number of shares, in
thousands 3)	35,358	28,224	35,358	28,224	33,122	29,555
Outstanding shares at the end of the year, in thousands 3)	35,358	28,224	35,358	28,224	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.

3) Historic number of shares have been adjusted for the bonus issue element in the new share issue in 2016.

Group - Statements of Comprehensive Income

MSEK	First six months 2017	2016	Second quarter 2017	2016	Last 12 months	Full year 2016
Result for the period	107	80	54	45	244	217
Items that not will be reclassified to the income statement Actuarial gains/losses on defined benefit pensions plans, net after tax	-1	-	-0	-	4	5
Items that will be reclassified to the income statement Translation differences,
net after tax	-71	0	-53	32	19	90
Cash flow hedges, net after tax	0	-0	0	-0	-1	-1
Hedging of net investment abroad, net after tax	27	2	20	-11	0	-25
Other comprehensive income, net after tax	-44	2	-33	21	23	69
Total comprehensive income for the period	63	83	21	66	267	286
Total comprehensive income attributable to: - parent company shareholders	63	83	21	66	267	286

Group - Statements of Cash Flow

MSEK	First six months 2017	2016	Second quarter 2017	2016	Last 12 months	Full year 2016
Result after financial items	143	111	73	61	332	300
Adjustments for items not included in
cash flow	72	32	22	20	188	148
Paid tax	-98	-40	-61	-23	-163	-104
Changes in working capital	-265	-46	5	-25	-232	-13
Cash flow from operating activities	-148	58	40	33	125	331
Net investments in intangible and
tangible assets	-104	-7	-73	3	-210	-113
Acquisition of operations	-	-34	-	-	-1,762	-1,796
Payments received regarding long
term holdings	1	1	0	0	2	2
Cash flow from investing activities	-103	-40	-73	3	-1,970	-1,907
Amortization of loans	-53	-53	-26	-28	-692	-692
New loans	262	-	-	-	2,173	1,911
Other changes in long- and
short-term borrowing	107	46	55	3	-129	-190
New share issue	-	-	-	-	695	695
Dividend to parent company
shareholders	-92	-58	-92	-58	-92	-58
Cash flow from financing activities	223	-65	-63	-83	1,955	1,666
Cash flow for the period	-28	-48	-96	-47	110	90
Liquid funds at the beginning of the
period	651	529	713	522	489	529
Translation difference	-22	8	-16	14	2	32
Liquid funds at the end of the	601	489	601	489	601	651
period
Net debt at the beginning of
the period	2,224	738	2,437	750	785	738
Translation difference in net debt	10	8	18	12	43	40
Net debt in acquired operations	-	-3	-	-	465	462
Change in net debt	346	42	125	23	1,287	983
Net debt at the end of the period	2,580	785	2,580	785	2,580	2,224
Operating cash flow	-113	68	47	64	-1,598	-1,428

Group – Statements of Financial Position

MSEK	30 Jun 2017	30 Jun 2016	31 Dec 2016
Assets
Intangible assets	3,051	1,290	3,081
Tangible assets	822	316	806
Other fixed assets	233	199	241
Total fixed assets	4,106	1,805	4,128
Inventories	340	274	295
Accounts receivable	1,693	784	1,396
Other current assets	318	158	312
Cash and cash equivalents	601	489	651
Total current assets	2,952	1,705	2,654
Total assets	7,058	3,510	6,782
Equity and liabilities
Equity	2,382	1,512	2,411
Liabilities
Non-interest-bearing long-term liabilities	212	86	233
Interest-bearing long-term liabilities	2,563	20	2,646
Total long-term liabilities	2,775	106	2,879
Non-interest-bearing short-term liabilities	1,283	638	1,263
Interest-bearing short-term liabilities	618	1,254	228
Total short-term liabilities	1,901	1,892	1,492
Total equity and liabilities	7,058	3,510	6,782

LGI was acquired in July 2016 which explains most of the increase in all the balance items. At the same time the Group has refinanced resulting in a three-year financing plan with Elanders' main banks. This has led to shift from short-term interest-bearing liabilities to long-term.

Group – Statements of Changes in Equity

MSEK	Equity attributable to parent company shareholders	Total equity
Opening balance on 1 Jan. 2016	1,488	1,488
New share issue	695	695
Dividend to parent company shareholders	-58	-58
Total comprehensive income for the period	286	286
Closing balance on 31 Dec. 2016	2,411	2,411
Opening balance on 1 Jan. 2016	1,488	1,488
Dividend to parent company shareholders	-58	-58
Total comprehensive income for the period	83	83
Closing balance on 30 Jun. 2016	1,512	1,512
Opening balance on 1 Jan. 2017	2,411	2,411
Dividend to parent company shareholders	-92	-92
Total comprehensive income for the period	63	63
Closing balance on 30 Jun. 2017	2,382	2,382

Segment reporting

The three 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

MSEK	First six months 2017	2016	Second quarter 2017	2016	Last 12 months	Full year 2016
Supply Chain Solutions	3,290	981	1,712	521	6,307	3,998
Print & Packaging Solutions	1,072	1,047	533	535	2,171	2,146
e-Commerce Solutions	72	84	33	40	216	227
Group functions	19	16	10	8	30	27
Eliminations	-50	-50	-24	-25	-113	-113
Group net sales	4,403	2,077	2,264	1,079	8,611	6,285

Operating result

		First six months		Second quarter	Last	Full year
MSEK	2017	2016	2017 2016		12 months	2016
Supply Chain Solutions	152	83	84	46	327	258
Print & Packaging Solutions	59	55	23	30	131	127
e-Commerce Solutions	-12	-1	-6	-1	8	19
Group functions	-16	-15	-8	-9	-62	-60
Group operating result	182	122	93	66	405	344

During 2016 one-off items amounting to net MSEK 39 attributable to advisory costs in connections to acquisitions, book VAT recognized as revenue and provision for settlement costs for a dispute in the US have been charged to operating result for Group functions.

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 30 June 2017 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.

PARENT COMPANY

Parent Company – Income Statements

MSEK	2017	First six months 2016		Second quarter 2016	Last 12 months	Full year 2016
Net sales Operating expenses	17 -33	15 -24	8 -16	8 -15	30 -77	28 -68
Operating result	-16	-9	-8	-7	-47	-40
Net financial items	117	40	74	26	212	135
Result after financial items	101	31	66	19	165	95
Income tax	-11	1	-8	4	-5	7
Result for the period	90	32	58	23	160	101

Parent Company - Statements of Comprehensive Income

MSEK		First six months 2017 2016		Second quarter 2016	Last 12 months	Full year 2016
Result for the period	90	32	2017 58	23	160	101
Other comprehensive income	-	-	-	-	-	-
Total comprehensive income for the period	90	32	58	23	160	101

Parent Company - Balance Sheets

MSEK	30 Jun 2017	30 Jun 2016	31 Dec 2016
Assets
Fixed assets	4,320	2,100	4,046
Current assets	331	159	421
Total assets	4,651	2,259	4,467
Equity, provisions and liabilities
Equity	1,638	875	1,640
Provisions	3	3	3
Long-term liabilities	2,290	77	2,362
Short-term liabilities	720	1,304	462
Total equity, provisions and liabilities	4,651	2,259	4,467

Parent Company - Statements of Changes in Equity

MSEK	Share capital	Statutory reserve	Unrestricted equity	Total equity
Opening balance on 1 Jan. 2016	265	332	304	902
New share issue	88	-	606	695
Dividend	-	-	-58	-58
Total comprehensive income for the period	-	-	101	101
Closing balance on 31 Dec. 2016	354	332	953	1,640
Opening balance on 1 Jan. 2016 Dividend	265 -	332 -	304 -58	902 -58
Total comprehensive income for the period	-	-	32	32
Closing balance on 30 Jun. 2016	265	332	278	875
Opening balance on 1 Jan. 2017	354	332	953	1,640
Dividend	-	-	-92	-92
Total comprehensive income for the period	-	-	90	90
Closing balance on 30 Jun. 2017	354	332	951	1,638

QUARTERLY DATA

MSEK	2017 Q2	2017 Q1	2016 Q4	2016 Q3	2016 Q2	2016 Q1	2015 Q4	2015 Q3	2015 Q2
Net sales	2,264	2,139	2,330	1,878	1,079	998	1,124	1,041	1,066
EBITDA	155	152	187	152	92	85	154	95	93
EBITA	108	105	139	112	72	62	116	69	68
EBITA-margin, %	4.8	4.9	6.0	6.0	6.7	6.2	10.3	6.6	6.4
Operating result	93	90	123	100	66	56	111	64	63
Operating margin, %	4.1	4.2	5.3	5.3	6.1	5.6	9.9	6.2	5.9
Result after financial items	73	69	103	86	61	51	105	55	55
Result after tax	54	53	79	58	45	36	73	36	38
Earnings per share, SEK 1) 2)	1.52	1.49	2.37	2.04	1.59	1.26	2.60	1.27	1.34
Operating cash flow	47	-161	69	-1,565	64	3	237	-24	116
Cash flow per share, SEK2) 3)	1.12	-5.31	2.83	6.30	1.16	0.89	8.32	-1.87	3.72
Depreciation and write-downs	63	63	65	52	26	29	43	31	30
Net investments	73	31	79	1,787	-3	43	14	7	19
Goodwill	2,269	2,264	2,272	2,274	1,228	1,211	1,200	1,217	1,209
Total assets	7,058	7,064	6,782	6,713	3,510	3,524	3,560	3,547	3,504
Equity	2,382	2,454	2,411	1,607	1,512	1,505	1,488	1,445	1,409
Equity per share, SEK 2)	67.38	69.39	71.87	56.93	53.58	53.33	52.72	51.19	49.92
Net debt	2,580	2,437	2,224	2,921	785	750	738	951	882
Capital employed	4,962	4,890	4,635	4,528	2,297	2,255	2,226	2,396	2,291
Return on total assets, % 4)	5.3	5.2	7.3	7.8	7.5	6.4	12.6	7.3	7.1
Return on equity, % 4)	8.9	8.7	15.8	14.8	11.8	9.5	20.0	10.0	10.7
Return on capital employed, % 4)	7.5	7.5	10.7	11.7	11.6	10.0	19.2	10.9	10.8
Debt/equity ratio	1.1	1.0	0.9	1.8	0.5	0.5	0.5	0.7	0.6
Equity ratio, %	33.8	34.7	35.6	23.9	43.1	42.7	42.0	40.7	40.2
Interest coverage ratio 5)	5.5	6.4	7.8	11.0	16.1	14.3	12.7	10.0	7.2
Number of employees at the end of	6,589	6,501	6,444	6,472	3,101	3,173	3,177	3,182	3,166
the period

1) There is no dilution.

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

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

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

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

FIVE YEAR OVERVIEW – FIRST SIX MONTHS

	2017	2016	2015	2014	2013
Net sales, MSEK	4,403	2,077	2,072	1,761	1,005
Result after tax, MSEK	107	80	65	31	22
Earnings per share, SEK 1) 2)	3.02	2.85	2.31	1.22	0.89
Cash flow from operating activities per share, SEK 2)	-4.19	2.05	3.06	1.20	0.54
Equity per share, SEK 2)	67.38	53.58	49.92	42.62	39.16
Return on equity, % 3)	8.8	10.7	9.5	5.6	4.6
Return on capital employed, % 3)	7.6	10.8	10.3	7.9	6.1
Operating margin, %	4.1	5.9	5.6	4.4	5.1
Average number of shares, in thousands 2)	35,358	28,224	28,224	25,425	24,900

FIVE YEAR OVERVIEW – SECOND QUARTER

	2017	2016	2015	2014	2013
Net sales, MSEK	2,264	1,079	1,066	910	512
Result after tax, MSEK	54	45	38	15	28
Earnings per share, SEK 1) 2)	1.52	1.59	1.34	0.57	0.47
Cash flow from operating activities per share, SEK 2)	1.12	1.16	3.72	2.57	1.64
Equity per share, SEK 2)	67.38	53.58	49.92	42.62	39.16
Return on equity, % 3)	8.9	11.8	10.7	5.3	4.9
Return on capital employed, % 3)	7.5	11.6	10.8	7.4	6.7
Operating margin, %	4.1	6.1	5.9	4.4	5.6
Average number of shares, in thousands 2)	35,358	28,224	28,224	25,951	24,900

FIVE YEAR OVERVIEW – FULL YEAR

	2016	2015	2014	2013	2012
Net sales, MSEK	6,285	4,236	3,730	2,096	1,924
EBITDA, MSEK	516	428	292	229	209
Operating result, MSEK	344	292	175	131	119
Result after financial items, MSEK	300	259	140	102	93
Result after tax, MSEK	217	175	88	70	45
Earnings per share, SEK 1) 2)	7.35	6.18	3.27	2.81	1.87
Cash flow from operating activities per share, SEK 2)	11.19	9.52	6.03	5.15	9.06
Equity per share, SEK 2)	81.58	52.72	47.75	41.71	38.31
Dividends per share, SEK 2)	2.60	2.07	1.03	0.73	0.54
Operating margin, %	5.5	6.9	4.7	6.2	6.2
Return on total assets, %	6.7	8.2	5.9	5.6	5.6
Return on equity, %	12.4	12.1	7.4	7.0	4.8
Return on capital employed, %	10.0	12.6	8.7	7.7	7.4
Net debt/EBITDA ratio	4.3	1.7	3.1	3.2	3.3
Debt/equity ratio	0.9	0.5	0.7	0.7	0.7
Equity ratio, %	35.6	42.0	37.8	42.2	42.2
Average number of shares, in thousands 2)	29,555	28,224	26,825	24,900	23,712

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 2014 and 2016. No adjustment of the historic number of shares has been made for the new share issue in 2012 since it did not entail any bonus issue element.

3) Return ratios have been annualized.

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – QUARTERLY DATA

MSEK	2017 Q2	2017 Q1	2016 Q4	2016 Q3	2016 Q2	2016 Q1	2015 Q4	2015 Q3	2015 Q2
Operating result	93	90	123	100	66	56	111	64	63
Depreciation, amortization and write
downs	63	63	65	52	26	29	43	31	30
EBITDA	155	152	187	152	92	85	154	95	93
Operating result	93	90	123	100	66	56	111	64	63
Amortization of assets identified in
conjunction with acquisitions	16	15	16	12	6	6	5	5	5
EBITA	108	105	139	112	72	62	116	69	68
Cash flow from operating activities	40	-188	95	178	33	25	235	-53	105
Net financial items	20	22	20	14	5	6	6	9	8
Paid tax	61	37	34	30	24	16	9	27	21
Net investments	-73	-31	-79	-1,787	3	-43	-14	-7	-19
Operating cash flow	47	-161	69	-1,565	64	3	237	-24	116
Average total assets	7,061	6,923	6,748	5,112	3,517	3,542	3,543	3,526	3,567
Average cash and cash equivalents	-657	-682	-639	-558	-505	-526	-451	-389	-403
Average non-interest-bearing liabilities	-1,478	-1,478	-1,527	-1,141	-736	-776	-782	-794	-829
Average capital employed	4,926	4,763	4,581	3,412	2,276	2,240	2,311	2,344	2,334
Annualized operating result	371	359	490	398	263	224	444	256	252
Return on capital employed, %	7.5	7.5	10.7	11.7	11.6	10.0	19.2	10.9	10.8
Interest-bearing long-term liabilities	2,563	2,595	2,647	2,666	20	20	20	23	23
Interest-bearing short-term liabilities	618	555	228	883	1,254	1,252	1,247	1,301	1,264
Cash and cash equivalents	-601	-713	-651	-628	-489	-522	-529	-372	-405
Net debt	2,580	2,437	2,224	2,921	785	750	738	951	882

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FIRST SIX MONTHS

MSEK	2017	2016	2015	2014	2013
Average total assets	6,968	3,531	3,537	2,870	2,264
Average cash and cash equivalents	-655	-513	-431	-293	-134
Average non-interest-bearing liabilities	-1,484	-759	-839	-613	-444
Average capital employed	4,829	2,259	2,267	1,964	1,686
Annualized operating result	365	244	234	154	102
Return on capital employed, %	7.6	10.8	10.3	7.9	6.1

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – SECOND QUARTER

MSEK	2017	2016	2015	2014	2013
Average total assets	7,061	3,517	3,567	3,196	2,247
Average cash and cash equivalents	-657	-505	-403	-322	-106
Average non-interest-bearing liabilities	-1,478	-736	-829	-718	-432
Average capital employed	4,926	2,276	2,334	2,156	1,708
Annualized operating result	371	263	252	159	114
Return on capital employed, %	7.5	11.6	10.8	7.4	6.7

RECONCILIATION ALTERNATIVE PERFORMANCE MEASURES – FULL YEAR

MSEK	2016	2015	2014	2013	2012
Operating result	344	292	175	131	119
Depreciation, amortization and write-downs	172	136	117	98	90
EBITDA	516	428	292	229	209
Average total assets	5,132	3,559	3,017	2,363	2,133
Average cash and cash equivalents	-573	-418	-336	-192	-125
Average non-interest-bearing liabilities	-1,131	-816	-671	-461	-410
Average capital employed	3,428	2,325	2,010	1,710	1,598
Annualized operating result	344	292	175	131	119
Return on capital employed, %	10.0	12.6	8.7	7.7	7.4

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 year 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.
EBITDA	Earnings before interest, taxes, depreciation and amortization; operating result plus depreciation, amortization and write-downs of intangible assets and tangible fixed assets.
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.