Bergman & Beving

Interim / Quarterly Report • Oct 23, 2024

Interim Report 1 April–30 September 2024

Second quarter (1 July–30 September 2024)

• ❖ Revenue rose by 5 percent to MSEK 1,144 (1,094).
• ❖ EBITA increased by 12 percent to MSEK 120 (107) and the EBITA margin improved to 10.5 percent (9.8).
• ❖ Net profit rose by 12 percent to MSEK 55 (49).
• ❖ Cash flow from operating activities totalled MSEK 94 (176).
• ❖ One acquisition has been completed with annual revenue of approximately MSEK 40.

Six months (1 April-30 September 2024)

• ❖ Revenue rose by 3 percent to MSEK 2,397 (2,322).
• ❖ EBITA increased by 13 percent to MSEK 239 (212) and the EBITA margin improved to 10.0 percent (9.1).
• ❖ Net profit rose by 16 percent to MSEK 113 (97).
• ❖ Cash flow from operating activities totalled MSEK 288 (355).
• ❖ Earnings per share for the most recent 12-month period amounted to SEK 7.50 after dilution, compared with SEK 7.15 for the 2023/2024 financial year.
• ❖ Three acquisitions have been completed, one of which after the end of the period, with total annual revenue of approximately MSEK 250.

	3 months	6 months				Rolling 12 months
	Jul–Sep	Jul–Sep		Apr–Sep	Apr–Sep		30 Sep	31 Mar
MSEK	2024	2023	∆ %	2024	2023	∆ %	2024	2024
Revenue	1,144	1,094	5	2,397	2,322	3	4,798	4,723
EBITA	120	107	12	239	212	13	465	438
EBITA margin, percent	10.5	9.8		10.0	9.1		9.7	9.3
EBIT	100	90	11	200	181	10	391	372
EBIT margin, percent	8.7	8.2		8.3	7.8		8.1	7.9
Profit after financial items	73	64	14	147	126	17	282	261
Net profit (after taxes)	55	49	12	113	97	16	217	201
Earnings per share before dilution, SEK	1.95	1.80		3.90	3.50		7.55	7.15
Earnings per share after dilution, SEK	1.95	1.80		3.85	3.45		7.50	7.15
P/WC, percent							29	26
Cash flow from operating activities	94	176	-47	288	355	-19	596	663
Equity/assets ratio, percent							35	37
Number of employees at the end of the period	1,365	1,324	3	1,365	1,324	3	1,365	1,340

Unless otherwise stated, comparisons in brackets pertain to the corresponding period in the preceding year.

CEO's comments

Increased earnings despite a tough market – Diamonds form under pressure

We once again demonstrated that our decentralised governance model – where each operation is developed based on our capital allocation model and where we acquire highly profitable, capital-efficient companies – can deliver strong results, even in challenging times. Just as diamonds are formed under pressure, our companies improve when times get tougher thanks to the efforts of our strong company management teams and our decentralised way of working.

Despite a weak underlying market, we maintained a healthy rate of improvement during the quarter, with increased profit, stronger margins and improved profitability (P/WC). EBITA rose by 12 percent to MSEK 120 compared with the yearearlier period. It is gratifying to note that all three of our divisions contributed to this increase in profit.

Organically, however, revenue decreased slightly during the quarter. We managed to offset this through acquisitions, which resulted in revenue growth of 5 percentage points during the quarter. Thanks to the persistent and systematic work of our companies, in combination with acquisitions, our gross margin remained strong. We continued to focus on improvements in cost efficiency and reduced the Group's costs in comparable units during the period. At the same time, cost measures have been implemented but have not yet reached their full impact, so we expect additional effects going forward.

To date this year, we have acquired companies with combined annual revenue of MSEK 250. This includes the acquisition of Levypinta, which was carried out on 1 October. Given our specific criteria for acquisitions (operating margin of at least 15 percent and profitability over 45 percent), future acquisitions will continue to improve our margins and profitability.

During the last year our companies succeeded in reducing their inventory by over MSEK 180 organically thanks to methodical assortment and inventory optimisation. Even if we are not yet quite back to the inventory turnover rate the Group had before the pandemic, we are well on our way. Cash flow from operating activities for the quarter totalled MSEK 94. Cash flow was impacted by somewhat higher working capital during the quarter, primarily due to an accrual effect between accounts payable in the first and second quarters and to acquired units.

To sum up, I am pleased that we once again increased our earnings per share, for the quarter as well as accumulated, after having delivered stable earnings improvements for a full 19 consecutive quarters.

All divisions deliver increased profits

All three of our divisions posted increased earnings during the quarter. Division Safety Technology in particular stands out, with an earnings increase over 50 percent compared with the year-earlier period, the result of increased revenue, reduced costs and a stronger gross margin. The EBITA margin at Divisions Core Solutions and Industrial Equipment remained above 10 percent, for the quarter as well as accumulated, and with profitability over 30 percent.

Balance between acceleration and restraint

The current operating environment is challenging, and the economy will not start to improve until early 2025, at best. Until that becomes a reality, we will continue to adapt to the prevailing situation, while ensuring that we are prepared to act when the economy recovers. Between the broad exposure we enjoy with 32 niche corporate groups and our acquisitions, we are positioned to deliver on our financial targets within the established time frame: MSEK 500 in operating profit, 10 percent operating margin and profitability of 45 percent. We will continue to allocate capital to the companies in our Group with high profitability and good growth prospects. Our ambition to acquire companies with combined earnings of MSEK 50–80 during the current year also remains unchanged.

With our broad portfolio of companies, decentralised governance model and strong management teams, we have excellent conditions to continue our positive earnings trend and further increase our profitability.

Stockholm, October 2024

Magnus Söderlind President & CEO

Profit and revenue

Second quarter (July–September 2024)

Revenue rose by 5 percent to MSEK 1,144 (1,094). Acquired revenue growth amounted to 9 percent. Exchange-rate fluctuations had a negative impact of 1 percent on revenue. Revenue decreased by 3 percent organically.

Demand from customers in the construction sector in the Nordic region was stable, albeit low, with commercial real estate and infrastructure projects representing the strongest markets. Overall, demand from industrial customers was somewhat weaker in the quarter, though with significant variation between our companies' markets.

EBITA for the second quarter increased by 12 percent to MSEK 120 (107) and the EBITA margin improved to 10.5 percent (9.8). All divisions increased their EBITA during the quarter, primarily due to acquired units. Implemented measures to lower organic costs yielded results and contributed positively to the quarter.

Profit after financial items rose by 14 percent to MSEK 73 (64). Net profit increased by 12 percent to MSEK 55 (49).

Six months (April–September 2024)

Revenue rose by 3 percent to MSEK 2,397 (2,322). Acquired revenue growth amounted to 9 percent. Exchange-rate fluctuations had a negative impact of 1 percent on revenue. Revenue decreased by 5 percent organically.

EBITA for the period increased by 13 percent to MSEK 239 (212) and the EBITA margin improved to 10.0 percent (9.1).

Profit after financial items rose by 17 percent to MSEK 147 (126). Net profit increased by 16 percent to MSEK 113 (97) and earnings per share for the rolling 12-month period amounted to SEK 7.50 after dilution, compared with SEK 7.15 for the 2023/2024 financial year.

¹⁾ The delivery problems due to the IT attack on Luna's logistics provider had negative impact of approximately MSEK 10 on EBITA.

Performance by division

	3 months		6 months			Rolling 12 months
MSEK	Jul–Sep 2024	Jul–Sep 2023	∆ %	Apr–Sep 2024	Apr–Sep 2023	∆ %	30 Sep 2024	31 Mar 2024
Revenue
Core Solutions	334	346	-3	722	739	-2	1,393	1,410
Safety Technology	362	354	2	778	759	3	1,623	1,604
Industrial Equipment	455	402	13	912	841	8	1,812	1,741
Group-wide/eliminations	-7	-8		-15	-17		-30	-32
Total revenue	1,144	1,094	5	2,397	2,322	3	4,798	4,723
EBITA
Core Solutions	39	37	5	84	87	-3	147	150
Safety Technology	29	19	53	63	53	19	126	116
Industrial Equipment	55	50	10	101	81	25	209	189
Group-wide/eliminations*	-3	1		-9	-9		-17	-17
Total EBITA	120	107	12	239	212	13	465	438
Depreciation and amortisation in connection with acquisitions	-20	-17		-39	-31		-74	-66
Operating profit	100	90		200	181		391	372
Financial income and expenses	-27	-26		-53	-55		-109	-111
Profit before taxes	73	64		147	126		282	261
EBITA margin, percent
Core Solutions	11.7	10.7		11.6	11.8		10.6	10.6
Safety Technology	8.0	5.4		8.1	7.0		7.8	7.2
Industrial Equipment	12.1	12.4		11.1	9.6		11.5	10.9
Total EBITA margin	10.5	9.8		10.0	9.1		9.7	9.3

^* IFRS 16 does not affect operational follow-up or follow-up of earnings from the divisions.

Core Solutions

Second quarter (July–September 2024)

Core Solutions' revenue amounted to MSEK 334 (346). EBITA increased by 5 percent to MSEK 39 (37) and the EBITA margin improved to 11.7 percent (10.7).

Demand from customers in the construction sector in the Nordic region remained stable, but weak. The largest company in the division, ESSVE, increased its revenue in the Swedish market through new customer contracts, while revenue in other markets was weaker than in the previous year. Itaab and Elkington experienced continued stable demand from customers in commercial properties and infrastructure.

Safety Technology

Second quarter (July–September 2024)

Safety Technology's revenue rose by 2 percent to MSEK 362 (354). EBITA increased by 53 percent to MSEK 29 (19) and the EBITA margin improved to 8.0 percent (5.4). Earnings improved due to higher revenue, a stronger gross margin and lower costs.

Demand remained stable for Guide, Cresto, Zekler, SIS Group and the newly acquired Ateco.

Industrial Equipment

Second quarter (July–September 2024)

Industrial Equipment's revenue rose by 13 percent to MSEK 455 (402). EBITA increased by 10 percent to MSEK 55 (50) and the EBITA margin amounted to 12.1 percent (12.4).

As in previous quarters, demand for the division's companies varied. Luna, which sells to resellers, continued to see weak demand, though this was partially offset by cost measures. Most of the companies in the division experienced a stable or favourable market. Earnings continued to improve, primarily as a result of acquired companies.

Group-wide expenses and eliminations

Group-wide items and eliminations for the second quarter amounted to MSEK -3 (1). The Parent Company's revenue amounted to MSEK 11 (12) and profit after financial items amounted to MSEK 14 (11) for the second quarter.

Employees

At the end of the period, the number of employees in the Group totalled 1,365, compared with 1,340 at the beginning of the financial year. During the period, 18 employees were gained via acquisitions. The number of employees decreased organically by 66 compared with the same period last year.

Corporate acquisitions

		Rev.	No. of
Acquisition	Closing	MSEK*	empl.	Division
Tema Norge, Norway	Apr 2023	45	8	Industrial Equipment
Elkington, Sweden	Jun 2023	40	6	Core Solutions
Itaab, Sweden	Jul 2023	75	23	Core Solutions
Sandbergs, Sweden	Aug 2023	60	8	Industrial Equipment
Ateco, Sweden	Nov 2023	50	9	Safety Technology
Orbital Fabrications, UK	Dec 2023	180	80	Industrial Equipment
Maskinab Teknik, Sweden	Apr 2024	35	3	Industrial Equipment
Spraylat, UK	Jul 2024	40	15	Core Solutions

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

On 2 April 2024, Division Industrial Equipment acquired all of the shares in Maskinab Teknik AB. Maskinab is a leading supplier of machinery for sheet metal processing for manufacturing with annual revenue of approximately MSEK 35.

On 1 July 2024, Division Core Solutions acquired all of the shares in Spraylat International Limited. Spraylat manufactures and sells temporary protective coatings primarily for windows. The company has annual revenue of approximately MSEK 40.

After the end of the period Division Core Solutions acquired all of the shares in Levypinta Finland Oy. The company manufactures and sells bespoke, high-quality boards coated with high pressure laminate (HPL) primarily to manufacturers of special furniture. The company has revenue of approximately MEUR 16.

Preliminary purchase price allocations for the acquisitions over the past 12 months:

Fair value of
acquired assets and liabilities, MSEK	Total
Customer relations, etc.	174
Other non-current assets	14
Other assets	170
Deferred tax liability, net	-42
Other operating liabilities	-56
Acquired net assets	260
Goodwill	134
Non-controlling interest	-39
Purchase considerations	355
Less: Purchase considerations, unpaid	-58
Less: Cash and cash equivalents in
acquired companies	-90
Net change in cash and cash equivalents	-207

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

Goodwill is based on the expected future sales trend and profitability of the acquired companies.

The unpaid purchase considerations of MSEK 58 are contingent and are estimated to amount to a maximum of MSEK 68. The contingent considerations will fall due within two years.

Considerations of MSEK 55 pertaining to previous years' acquisitions were paid during the financial year. Remeasurements of contingent considerations had a positive effect of MSEK 6 on the operating year, of which MSEK 6 in the quarter. The effect on earnings is recognised in Other operating income or Other operating expenses, respectively.

Acquisition-related transaction costs for the year's acquisitions, which are recognised in other operating expenses in the income statement, amounted to MSEK 1 (0).

No remeasurements of option liabilities related to minority interests were performed during the period.

Profitability, cash flow and financial position

Profitability, measured as the return on working capital (P/WC), amounted to 29 percent (23). The return on equity was 10 percent (9).

Cash flow from operating activities for the first six months totalled MSEK 288 (355). Working capital decreased during the period by MSEK 18, mainly a result of a decline in inventory levels and lower accounts receivable.

Cash flow was impacted by net investments in noncurrent assets of MSEK 30 (28) and MSEK 131 (179) pertaining to acquisitions.

The Group's operational net loan liability at the end of the period amounted to MSEK 1,115 (1,119), excluding expensed pension obligations of MSEK 568 (444) and lease liabilities of MSEK 429 (423). Cash and cash

equivalents, including unutilised granted credit facilities, totalled MSEK 923 (917). Financial income and expenses amounted to MSEK -53 (-55) for the first six months, of which the net expense for bank financing amounted to MSEK -36 (-35). Financial income and expenses amounted to MSEK -27 (-26) for the quarter, of which the net expense for bank financing was MSEK -17 (-18).

The equity/assets ratio was 35 percent (40). Equity per share amounted to SEK 81.85, compared with SEK 83.00 at the beginning of the year.

The Swedish tax rate, which is also the Parent Company's tax rate, was 20.6 percent. The Group's weighted average tax rate, with its current geographic mix, was approximately 23 percent.

Share structure and repurchase of shares

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

SHARE STRUCTURE

Class of share	No. of shares	No. of votes	% of capital	% of votes
Class A shares, 10 votes per share	1,060,656	10,606,560	3.9	28.7
Class B shares, 1 vote per share	26,375,760	26,375,760	96.1	71.3
Total number of shares before repurchasing	27,436,416	36,982,320	100.0	100.0
Of which, repurchased Class B shares Total number of shares after repurchasing	-702,043 26,734,373		2.6	1.9

The share price on 30 September 2024 was SEK 297.00. The average number of treasury shares was 724,465 during the period and 702,043 at the end of the period. The average purchase price for the repurchased shares was SEK 87.88 per share.

CALL OPTION PROGRAMMES

		Corresponding	% of
Outstanding programmes	No. of	no. of shares	total shares	Redemptio	Redemption period
	options			n price
Call option programme 2021/2025	154,000	154,000	0.6	197.30	16 Sep 2024–12 Jun 2025
Call option programme 2022/2026	210,000	210,000	0.8	106.10	9 Sep 2025–5 Jun 2026
Call option programme 2023/2027	250,000	250,000	0.9	181.10	9 Sep 2026–4 Jun 2027
Call option programme 2024/2028	250,000	250,000	0.9	378.30	10 Sep 2027–2 Jun 2028

Call options issued for repurchased shares resulted in an insignificant dilution effect. In the first quarter of the year, the 2020/2024 call option programme expired. In the second quarter, the 2024/2028 call option programme resolved on by the Annual General Meeting in August 2024 was issued.

Events after the end of the period

On 1 October, Division Core Solutions acquired all of the shares in Levypinta Finland Oy. The company manufactures and sells bespoke, high-quality boards coated with high pressure laminate (HPL) primarily to manufacturers of special furniture. The company has revenue of approximately MEUR 16.

Affirmation

The Board of Directors and the President & CEO affirm that this interim report provides a true and fair overview of the operations, position and earnings of the Parent Company and the Group, and that it describes the material risks and uncertainties to which the Parent Company and the companies within the Group are exposed.

Stockholm, 23 October 2024

Jörgen Wigh	Fredrik Börjesson	Charlotte Hansson
Chairman	Director	Director
Henrik Hedelius	Malin Nordesjö	Niklas Stenberg
Director	Director	Director
Jörgen Bengtsson Director – employee representative	Mikael Lindblom Director – employee representative

Magnus Söderlind

President & CEO

This report has not been reviewed 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 and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 7:45 a.m. CEST on 23 October 2024.

Dates for forthcoming financial information

• ❖ Interim Report 1 April–31 December 2024 will be presented on 5 February 2025
• ❖ Financial Report 1 April 2024–31 March 2025 will be published on 9 May 2025.

Contact information

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

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

Reporting by quarter

	2024/2025 2023/2024								2022/2023
MSEK	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Revenue
Core Solutions	334	388	349	322	346	393	382	298	310	389
Safety Technology	362	416	412	433	354	405	425	442	378	411
Industrial Equipment	455	457	459	441	402	439	438	509	395	410
Group-wide/eliminations	-7	-8	-6	-9	-8	-9	-8	-10	-10	-10
Total revenue	1,144	1,253	1,214	1,187	1,094	1,228	1,237	1,239	1,073	1,200
EBITA
Core Solutions	39	45	46	17	37	50	40	11	26	37
Safety Technology	29	34	23	40	19	34	29	49	35	39
Industrial Equipment	55	46	51	57	50	31	35	45	24	17
Group-wide/eliminations	-3	-6	-4	-4	1	-10	0	-2	-1	-2
Total EBITA	120	119	116	110	107	105	104	103	84	91
EBITA margin, percent
Core Solutions	11.7	11.6	13.2	5.3	10.7	12.7	10.5	3.7	8.4	9.5
Safety Technology	8.0	8.2	5.6	9.2	5.4	8.4	6.8	11.1	9.3	9.5
Industrial Equipment	12.1	10.1	11.1	12.9	12.4	7.1	8.0	8.8	6.1	4.1
Total EBITA margin	10.5	9.5	9.6	9.3	9.8	8.6	8.4	8.3	7.8	7.6

Group summary

CONSOLIDATED INCOME STATEMENT	3 months		6 months		Rolling 12 months
	Jul–Sep	Jul–Sep	Apr–Sep	Apr–Sep	30 Sep	31 Mar
MSEK Revenue	2024 1,144	2023 1,094	2024 2,397	2023 2,322	2024 4,798	2024 4,723
Other operating income	10	3	13	9	43	39
Total operating income	1,154	1,097	2,410	2,331	4,841	4,762
Cost of goods sold	-588	-563	-1,247	-1,228	-2,482	-2,463
Personnel costs	-245	-231	-512	-484	-1,046	-1,018
Depreciation, amortisation and impairment losses	-75	-71	-149	-137	-296	-284
Other operating expenses	-146	-142	-302	-301	-626	-625
Total operating expenses	-1,054	-1,007	-2,210	-2,150	-4,450	-4,390
Operating profit	100	90	200	181	391	372
Financial income and expenses	-27	-26	-53	-55	-109	-111
Profit after financial items	73	64	147	126	282	261
Taxes	-18	-15	-34	-29	-65	-60
Net profit	55	49	113	97	217	201
Of which, attributable to Parent Company shareholders	52	48	104	93	202	191
Of which, attributable to non-controlling interest	3	1	9	4	15	10
EBITA	120	107	239	212	465	438
Earnings per share before dilution, SEK	1.95	1.80	3.90	3.50	7.55	7.15
Earnings per share after dilution, SEK	1.95	1.80	3.85	3.45	7.50	7.15
Number of shares outstanding before dilution, '000	26,734	26,667	26,734	26,667	26,734	26,707
Weighted number of shares before dilution, '000	26,714	26,643	26,711	26,625	26,696	26,654
Weighted number of shares after dilution, '000	27,009	26,792	26,979	26,799	26,895	26,801

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	3 months		6 months		Rolling 12 months
	Jul–Sep	Jul–Sep	Apr–Sep	Apr–Sep	30 Sep	31 Mar
MSEK	2024	2023	2024	2023	2024	2024
Net profit	55	49	113	97	217	201
Other comprehensive income
Remeasurement of defined-benefit pension plans	-25	37	-25	37	-153	-91
Tax attributable to components that will not be reclassified	5	-8	5	-8	32	19
Components that will not be reclassified to net profit	-20	29	-20	29	-121	-72
Translation differences	-18	-27	-32	34	-34	32
Fair value changes for the year in cash-flow hedges	0	1	0	-2	0	-2
Tax attributable to components that will be reclassified	0	-1	0	0	0	0
Components that will be reclassified to net profit	-18	-27	-32	32	-34	30
Other comprehensive income	-38	2	-52	61	-155	-42
Total comprehensive income for the period	17	51	61	158	62	159
Of which, attributable to Parent Company shareholders	15	51	52	153	46	147
Of which, attributable to non-controlling interest	2	0	9	5	16	12

CONSOLIDATED BALANCE SHEET

MSEK	30 Sep 2024	30 Sep 2023	31 Mar 2024
Assets
Goodwill	2,060	1,939	2,018
Other intangible non-current assets	797	726	781
Tangible non-current assets	162	149	157
Right-of-use assets	425	424	442
Financial non-current assets	4	6	4
Deferred tax assets	63	35	59
Total non-current assets	3,511	3,279	3,461
Inventories	1,136	1,268	1,189
Accounts receivable	879	885	936
Other current receivables	184	172	180
Cash and cash equivalents	479	249	296
Total current assets	2,678	2,574	2,601
Total assets	6,189	5,853	6,062
Equity and liabilities
Equity attributable to Parent Company shareholders	2,072	2,252	2,108
Non-controlling interest	113	63	105
Total equity	2,185	2,315	2,213
Non-current interest-bearing liabilities	1,586	1,391	1,374
Provisions for pensions	568	444	558
Other non-current liabilities and provisions	451	260	424
Total non-current liabilities	2,605	2,095	2,356
Current interest-bearing liabilities	437	400	421
Accounts payable	450	448	484
Other current liabilities	512	595	588
Total current liabilities	1,399	1,443	1,493
Total equity and liabilities	6,189	5,853	6,062

CONSOLIDATED STATEMENT OF EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS

MSEK	30 Sep 2024	30 Sep 2023	31 Mar 2024
Opening equity	2,108	2,181	2,181
Dividend	-102	-96	-96
Exercise and purchase of options for repurchased shares	14	14	10
Option liabilities, acquisitions1	–	–	-134
Total comprehensive income for the period	52	153	147
Closing equity	2,072	2,252	2,108

¹⁾ Refers to the value of put options issued in connection with acquisitions of partly owned subsidiaries. The minority shareholders are entitled to sell shares to Bergman & Beving. The option price is based on the expected future financial performance of the acquired operations.

CONSOLIDATED CASH-FLOW STATEMENT	3 months		6 months		Rolling 12 months
	Jul–Sep	Jul–Sep	Apr–Sep	Apr–Sep	30 Sep	31 Mar
MSEK	2024	2023	2024	2023	2024	2024
Operating activities before changes in working capital	120	111	270	251	474	455
Changes in working capital	-26	65	18	104	122	208
Cash flow from operating activities	94	176	288	355	596	663
Investments in intangible and tangible assets	-14	-11	-31	-29	-60	-58
Proceeds from sale of intangible and tangible assets	0	1	1	1	2	2
Acquisition of businesses	-96	-81	-131	-179	-264	-312
Cash flow from investing activities	-110	-91	-161	-207	-322	-368
Dividend, Parent Company shareholders	-102	-96	-102	-96	-102	-96
Borrowings	293	72	297	72	360	135
Repayment of loans	-1	0	-56	-14	-135	-93
Repayment of leases	-38	-38	-75	-73	-151	-149
Other financing activities	6	1	-2	-12	-10	-20
Cash flow from financing activities	158	-61	62	-123	-38	-223
Cash flow for the period	142	24	189	25	236	72
Cash and cash equivalents at the beginning of the period	340	231	296	220	249	220
Cash flow for the period	142	24	189	25	236	72
Exchange-rate differences in cash and cash equivalents	-3	-6	-6	4	-6	4
Cash and cash equivalents at the end of the period	479	249	479	249	479	296

Compilation of key financial ratios

KEY FINANCIAL RATIOS	Rolling 12 months
	30 Sep	31 Mar	31 Mar	31 Mar	31 Mar
MSEK	2024	2024	2023	2022	2021
Revenue	4,798	4,723	4,749	4,575	4,311
EBITDA	687	656	571	503	426
EBITA	465	438	382	331	271
EBITA margin, percent	9.7	9.3	8.0	7.2	6.3
EBIT	391	372	339	298	247
EBIT margin, percent	8.1	7.9	7.1	6.5	5.7
Profit after financial items	282	261	271	259	212
Net profit	217	201	214	202	166
Profit margin, percent	5.9	5.5	5.7	5.7	4.9
Return on working capital (P/WC), percent	29	26	21	22	20
Return on capital employed, percent	9	9	8	8	7
Return on equity, percent	10	9	10	11	10
Operational net loan liability (closing balance)	1,115	1,057	1,090	889	697
Operational net debt/equity ratio	0.5	0.5	0.5	0.5	0.4
Operational net loan liability/EBITDA excl. IFRS 16, multiple	2.1	2.1	2.5	2.3	2.2
Equity (closing balance)	2,185	2,213	2,240	1,932	1,715
Equity/assets ratio, percent	35	37	39	36	35
Number of employees at the end of the period	1,365	1,340	1,348	1,227	1,129

KEY PER-SHARE DATA	Rolling 12 months
	30 Sep	31 Mar	31 Mar	31 Mar	31 Mar
SEK	2024	2024	2023	2022	2021
Earnings before dilution	7.55	7.15	7.80	7.55	6.15
Earnings after dilution	7.50	7.15	7.80	7.50	6.15
Cash flow from operating activities	22.35	24.85	12.55	8.50	14.40
Equity	81.85	83.00	84.35	72.85	64.40
Share price	297.00	209.50	128.40	141.40	121.40

Parent Company summary

INCOME STATEMENT	3 months		6 months			Rolling 12 months
	Jul–Sep	Jul–Sep	Apr–Sep	Apr–Sep	30 Sep	31 Mar
MSEK	2024	2023	2024	2023	2024	2024
Revenue	11	12	21	22	40	41
Other operating income	–	0	–	0	0	0
Total operating income	11	12	21	22	40	41
Operating expenses	-14	-13	-30	-25	-58	-53
Operating loss	-3	-1	-9	-3	-18	-12
Financial income and expenses	17	12	33	29	62	58
Profit after financial items	14	11	24	26	44	46
Appropriations	–	–	–	–	11	11
Profit before taxes	14	11	24	26	55	57
Taxes	-3	-2	-5	-5	0	0
Net profit	11	9	19	21	55	57

STATEMENT OF COMPREHENSIVE INCOME	3 months		6 months			Rolling 12 months
MSEK	Jul–Sep 2024	Jul–Sep 2023	Apr–Sep 2024	Apr–Sep 2023	30 Sep 2024	31 Mar 2024
Net profit	11	9	19	21	55	57
Fair value changes for the year in cash-flow hedges	0	1	0	-2	0	-2
Taxes attributable to other comprehensive income	0	-1	0	0	0	0
Components that will be reclassified to net profit	0	0	0	-2	0	-2
Other comprehensive income	0	0	0	-2	0	-2
Total comprehensive income for the period	11	9	19	19	55	55

BALANCE SHEET

MSEK	30 Sep 2024	30 Sep 2023	31 Mar 2024
Assets
Tangible non-current assets	1	1	1
Financial non-current assets	2,545	2,570	2,570
Current receivables	1,574	1,044	1,385
Cash and bank	0	0	1
Total assets	4,120	3,615	3,957
Equity, provisions and liabilities
Equity	1,044	1,081	1,113
Untaxed reserves	–	6	–
Provisions	43	42	43
Non-current liabilities	1,532	1,263	1,280
Current liabilities	1,501	1,223	1,521
Total equity, provisions and liabilities	4,120	3,615	3,957

Notes

1. Accounting policies

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

The same accounting policies and bases of judgement have been applied in this Interim Report as in the Annual Report for 2023/2024. Disclosures are provided in the financial statements and accompanying notes as well as other sections of the interim report.

New or amended accounting standards

The additions and amendments to standards applicable during the year are not assessed to have any material impact on the financial statements. The amended IFRS to be applied in the future are not expected to have any material impact on the Group's financial statements.

2. Revenue per geographic area

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

	3 months		6 months		Rolling 12 months
	Jul–Sep	Jul–Sep	Apr–Sep	Apr–Sep	30 Sep	31 Mar
MSEK	2024	2023	2024	2023	2024	2024
Sweden	376	363	829	798	1,690	1,659
Norway	250	269	520	550	1,095	1,125
Finland	132	120	244	268	486	510
UK	115	51	211	102	366	257
Other countries	271	291	593	604	1,161	1,172
Revenue	1,144	1,094	2,397	2,322	4,798	4,723

3. Leases

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

MSEK	30 Sep 2024	30 Sep 2023	31 Mar 2024
Right-of-use assets	425	424	442
Non-current lease liabilities	282	286	299
Current lease liabilities	147	137	143

	3 months			6 months		Rolling 12 months
	Jul–Sep	Jul–Sep	Apr–Sep	Apr–Sep	30 Sep	31 Mar
MSEK	2024	2023	2024	2023	2024	2024
Depreciation of right-of-use assets	-40	-39	-78	-76	-157	-155
Interest on lease liabilities	-5	-3	-9	-7	-17	-15

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

4. Fair value of financial instruments

	30 Sep 2024			31 Mar 2024
	Carrying			Carrying
MSEK	amount	Level 2	Level 3	amount	Level 2	Level 3
Derivative hedging instruments	2	2	–	1	1	–
Total financial assets at fair value per level	2	2	–	1	1	–
Derivative hedging instruments	–	–	–	–	–	–
Contingent considerations	132	–	132	172	–	172
Total financial liabilities at fair value per level	132	–	132	172	–	172

Financial instruments measured at fair value are presented in the table above. Derivatives belong to Level 2 of the fair value hierarchy. Derivatives that comprise foreign-exchange forward contracts are measured at fair value by discounting the difference between the contracted forward rate and the forward rate that can be contracted on the balance-sheet date for the remaining contract period.

Contingent considerations regarding acquired operations are classified in Level 3, meaning that measurement is based on the expected future financial performance of the acquired operations as assessed by management.

No transfers between Level 2 and Level 3 took place during the period. For the Group's other financial assets and liabilities, the fair value is estimated to be equal to the carrying amount.

Contingent considerations, MSEK	30 Sep 2024	31 Mar 2024
Opening balance	172	108
Acquisitions for the year	21	107
Purchase consideration paid	-55	-8
Revaluation of preliminary purchase price allocations	–	-21
Reversal through profit or loss	-6	-14
Exchange-rate differences	0	0
Closing balance	132	172

5. Risks and uncertainties

While the uncertain geopolitical situation, general conditions and inflation remain unchanged, they have had minor impact on the Group to date. During the financial year, no significant changes occurred with respect to risks and uncertainties for the Group or the Parent Company. For information about these risks and uncertainties, refer to pages 62–65 of Bergman & Beving's Annual Report for 2023/2024.

6. 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.

Definitions

Return on equity1, 2

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

Return on equity measures, from an ownership perspective, the return generated by the owners' invested capital.

Return on working capital (P/WC)¹

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.

P/WC is used to analyse profitability and is a measure that encourages high EBITA and low working capital requirements. Bergman & Beving's profitability target is for each unit in the Group to achieve profitability of at least 45 percent. Refer to the reconciliation table on page 19.

Return on capital employed¹

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.

Return on capital employed shows the Group's profitability in relation to externally financed capital and equity.

EBITA¹

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.

EBITA is used to analyse profitability generated from operating activities. Refer to the reconciliation table on page 19.

EBITA margin¹

EBITA for the period as a percentage of revenue.

The EBITA margin is used to show the profitability ratio of operating activities.

EBITDA¹

Operating profit for the period before depreciation/amortisation and impairment losses.

EBITDA is used to analyse profitability generated from operating activities. The Group also uses EBITDA excluding depreciation of right-of-use assets. Refer to the reconciliation table on page 19.

Equity per share1, 2

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

Equity per share measures the amount of equity attributable to each share and is presented to facilitate the analyses and decisions of investors.

Change in revenue for comparable units¹

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. Acquisitions/divestments refer to the acquisition or divestment of units during the corresponding period.

Used to analyse the underlying sales growth driven by changes in volume, range and prices for similar products and services between different periods. Refer to the reconciliation table on page 19.

Cash flow per share¹

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

The measure is used to enable investors to easily analyse the size of the surplus from operating activities that is generated per share.

Operational net loan liability¹

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

Operational net loan liability is used to follow the debt trend and to analyse the Group's total debt excluding lease liabilities and provisions for pensions. Refer to the reconciliation table on page 19.

Operational net debt/equity ratio1, 2

Operational net loan liability divided by equity.

Operational net debt/equity ratio measures, from an ownership perspective, the relationship between operational net loan liability and the owners' invested capital. Refer to the reconciliation table on page 20.

Profit after financial items¹

Profit before taxes for the period.

Used to analyse operational profitability including financial activities.

Earnings per share

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

Operating profit¹

Operating income less operating expenses. Also referred to as EBIT.

The measure is used to describe the Group's earnings before interest and taxes.

Operating margin¹

Operating profit for the period as a percentage of revenue. Also referred to as EBIT margin.

The measure is used to state the percentage of revenue remaining to cover interest and tax as well as to generate profit after the company's costs have been paid.

Equity/assets ratio1, 2

Equity as a percentage of the balance-sheet total.

The equity/assets ratio is used to analyse financial risk and shows the proportion of assets that are financed through equity.

Profit margin¹

Net profit after financial items as a percentage of revenue.

Profit margin is used to assess the Group's profit generation before tax and shows the proportion of revenue that the Group may retain in profit before taxes.

Weighted number of shares

_____________________________

Average number of shares outstanding before or after dilution. Shares held by the company 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.

¹⁾The performance measure is an alternative performance measure in accordance with ESMA's guidelines

²⁾Minority shares are included in equity when this performance measure is calculated

Reconciliation tables alternative performance measures

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

Change in revenue	3 months			6 months
Percentage change	Jul–Sep 2024	Jul–Sep 2023	Apr–Sep 2024	Apr–Sep 2023
Comparable units in local currency	-3	-7	-5	-8
Currency effects	-1	2	-1	2
Acquisitions/divestments	9	7	9	8
Total – change	5	2	3	2

EBITA	3 months 6 months			Rolling 12 months
MSEK	Jul–Sep 2024	Jul–Sep 2023	Apr–Sep 2024	Apr–Sep 2023	30 Sep 2024	31 Mar 2024
Operating profit	100	90	200	181	391	372
Depreciation and amortisation in connection with acquisitions	20	17	39	31	74	66
EBITA	120	107	239	212	465	438

EBITDA		3 months 6 months			Rolling 12 months
MSEK	Jul–Sep 2024	Jul–Sep 2023	Apr–Sep 2024	Apr–Sep 2023	30 Sep 2024	31 Mar 2024
Operating profit	100	90	200	181	391	372
Depreciation, amortisation and impairment losses	75	71	149	137	296	284
EBITDA	175	161	349	318	687	656
Depreciation of right-of-use assets	-40	-39	-78	-76	-157	-155
EBITDA excl. IFRS 16	135	122	271	242	530	501

Return on working capital (P/WC)	Rolling 12 months
MSEK	30 Sep 2024	30 Sep 2023	31 Mar 2024
EBITA (P)	465	419	438
Average working capital (WC)
Inventories	1,195	1,374	1,275
Accounts receivable	879	896	892
Accounts payable	-463	-466	-453
Total – average WC	1,611	1,804	1,714
P/WC, percent	29	23	26

Operational net loan liability and operational net debt/equity ratio

MSEK	30 Sep 2024	30 Sep 2023	31 Mar 2024
Financial net liabilities	2,591	2,355	2,353
Pensions	-568	-444	-558
Lease liabilities	-429	-423	-442
Cash and cash equivalents	-479	-249	-296
Operational net loan liability	1,115	1,119	1,057
Equity	2,185	2,315	2,213
Operational net debt/equity ratio	0.5	0.5	0.5

Bergman & Beving in brief

• ❖ Bergman & Beving, founded in 1906, is a Swedish listed corporate group with extensive experience in acquiring and developing leading niche companies from a long-term ownership perspective.
• ❖ Bergman & Beving's vision is to be a leading niche supplier of productive, safe and sustainable solutions to companies.
• ❖ Our decentralised governance model means that we strive for leading positions through organic growth and add-on acquisitions in existing niches and through acquisitions in new niches.
• ❖ Through our products, we are represented at over 5,000 sales outlets and by distributors in approximately 25 countries.
• ❖ Our primary market is the Nordic region, which accounts for approximately 70 percent of revenue.
• ❖ We aim to be a sustainable company where we actively work to create long-term value for society and our shareholders while limiting the impact of our operations on the environment.
• ❖ The subsidiaries in the Group are operated with decentralised business responsibility, with a focus on simplicity, responsibility and freedom, efficiency, openness and a willingness to change.

Our business units: