Fagerhult

Quarterly Report • Oct 28, 2024

Interim Report Q3 January – September 2024

The third quarter

1,873

Order intake, MSEK

Order intake was MSEK 1,873 (2,026), a decrease of -7.6% adjusted to -5.1% for currency effects of MSEK -49

1,919

Net sales, MSEK

Net sales were MSEK 1,919 (2,079), a decrease of -7.7% adjusted to -5.2% for currency effects of MSEK -51

181

Operating profit before IAC, MSEK

Operating profit before IAC was MSEK 181.3 (239.6), a decrease of -24.3% with an operating margin before IAC of 9.4 (11.5)%

Operating profit was MSEK 116.6 (239.6), a decrease of -51.3% with an operating margin of 6.1 (11.5)%

0.58

Earnings per share before IAC, SEK

Earnings per share before IAC were SEK 0.58 (0.90)

Earnings per share were SEK 0.31 (0.90)

214

Operating cash flow, MSEK Cash flow from operating activities was MSEK 213.7 (311.5)

The Group's results for the third quarter reflect the softer construction industry conditions being experienced.

Further, as suggested in the Q2 report and earnings call, the Group has taken restructuring expenses totalling 64.7 MSEK in three entities; Veko, LTS and Arlight. This has been reported as Items Affecting Comparability (IAC), refer to the table on page 18.

Positively, we report continued development in the gross profit before IAC margin and a 2.3% reduction in selling and administration expenses compared to the comparable quarter. We will keep our focus on cost savings in the coming quarters and this is expected to positively impact the result.

The general economic climate has an impact to postpone or defer investment decisions, we do not see project cancellations or lost projects. We continue our focus on the renovation market and the mega-trends remain favourable in the short and long term.

In the quarter, organic order intake declined -5.1% with overall order intake declining -7.6%, resulting in 1,873 (2,026) MSEK. We see positive order intake growth in both Premium and Infrastructure, a flat situation in Professional and a reduction in Collection.

Net sales for the quarter of 1,919 (2,079) MSEK delivered a 181.3 (239.6) MSEK operating profit before IAC, with an operating margin before IAC of 9.4 (11.5)%.

Gross profit margins continued to develop well with an increase in both the quarter and the year to date compared to last year. This trend combined with the lower cost base across the Group will enhance future operating margins.

Operating cash flow remains healthy at 213.7 (311.5) MSEK for the quarter.

The increase in financial items in the quarter of -41.3 (-22.2) MSEK arises from FX losses of -7.0 (-4.3) MSEK and an IFRS 16 impact of expense -6.2 (income +10.1) MSEK. Net interest expenses were flat.

CEO comment

The third quarter; in the current slower market conditions, we take important actions!

Results for the third quarter were softer in subdued market conditions and the cost reduction actions increased across the Group and we clearly see the benefit of this.

The restructuring programmes in three entities result in a one-off expense and we expect the benefits later in the year and throughout 2025 with a full payback in 1.6 years.

The markets remain mixed with uncertaintites arising from the economic and political conditions. The decision making cycle has increased creating delays.

There are some early signs of improved conditions in the new build market, e.g. real estate companies improving, but progress is slow. Our high focus on sustainable solutions servicing the renovation markets continue. Here we see an uptake in projects where the fluorescent lamp ban forces the refurbishment.

My notable comments from the quarter are; the continued gross margin development, Premium's healthy +6.6% organic order intake growth and although they come with a one-off cost the actions taken to restructure three of our entities for a healthier future.

Rolling 12 month and quarterly order intake

Strategic focus areas; we continue the high focus on long term value creation - we market test a services model approach in smart lighting

People and culture

The acquisition of talent remains a key focus as it is core competences and skills that will deliver long

term value. The awareness of our strategic direction, our performance and strong sustainability focus with an innovation culture continues to result in the attraction of talent.

Innovation

The Group's innovation culture is very clear;

Our Smart Lighting function is market testing a services model. The model offers the customer our Organic Response solution for up to a 5 year data-driven approach to maximise energy savings and other value added benefits. This test takes place in Sweden, the UK and the NL for indoor lighting.

LED Linear launch 'MARS EVE', a groundbreaking wall washing solution delivering outstanding uniformity using the very latest Gen3 nano-optics.

Fagerhult introduce to the market flexible track solutions which open up many direct/indirect smart lighting solutions for the flexible office of the future.

Finally, iGuzzini strengthen their position in the cultural segment with a unique design for museums. 'Sipario' is designed with; 22% less material weight, is made from recycled aluminium, is highly efficient and is easy to maintain for second life circularity reasons.

Sustainability

We continue to make good progress on our sustainability agenda. We have increased our resources to work stronger on the company specific action plans to reduce our carbon emissions and meet our near term and long term SBTi validated targets.

Outlook; by adjusting the cost base we are in better shape and are ready for when the markets return

The cost base actions and the restructuring programmes provide a platform for enhanced margins. The softer market conditions are closely followed, meanwhile we look forward 12-18 months and a return to growth in new build construction. We continue the progress on our new M&A agenda.

January-September

6,106

Order intake, MSEK

Order intake was MSEK 6,106 (6,312), a decrease of -3.3% adjusted to -2.5% for currency effects of MSEK -47

6,266

Net sales, MSEK

Net sales were MSEK 6,266 (6,450), a decrease of -2.9% adjusted to -2.2% for currency effects of MSEK -45

598

Operating profit before IAC, MSEK

Operating profit before IAC was MSEK 598.0 (685.3), a decrease of -12.7% with an operating margin before IAC of 9.5 (10.6)%

Operating profit was MSEK 533.3 (685.3), a decrease of -22.2% with an operating margin of 8.5 (10.6)%

1.99

Earnings per share before IAC, SEK

Earnings per share before IAC were SEK 1.99 (2.48)

Earnings per share were SEK 1.71 (2.48)

608

Operating cash flow, MSEK

Cash flow from operating activities was MSEK 607.5 (844.0)

Unpredictable market conditions arise from uncertaintites and slow decision making in the market.

In addition, inflationary concerns, cost of financing and the geopolitical aspects do not help confidence levels and we see projects being postponed and deferred to later dates.

The year to date operating profit before IAC is 598 (685) MSEK. The 64.7 MSEK restructuring expense arise in Veko, LTS and Arlight and these entities will benefit from a lower cost base and higher operating margins in future.

The Group's year to date order intake of 6,106 (6,312) MSEK shows a -2.5% organic decrease when adjusting for currency effects of -47 MSEK, -3.3% overall.

The Group's year to date net sales of 6,266 (6,450) MSEK show a -2.2% organic decrease when adjusting for currency effects of -45 MSEK, -2.9% overall.

The Group's year to date operating profit before IAC of 598 (685) MSEK results in an operating margin before IAC of 9.5 (10.6)%.

The operating cash flow in the period at 608 (844) MSEK continues to be strong and results in a lower net debt position compared to the comparable period.

The increase in financial items of -104.8 (-91.6) MSEK arises from a net reduction in interest expense, -86.2 (-88.5) MSEK and a net increase in FX and IFRS16 effects of -18.6 (-3.1) MSEK.

The tax expense in the period of 127.5 (157.5) MSEK results in a 29.8 (26.5)% tax rate.

Business areas

Net sales and operating profit by business area

		Net sales				Operating profit before IAC					Operating margin before IAC %
	Q3		Q1-3		Q3		Q1-3		Q3		Q1-3
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Collection	853.9	875.2	2,876.8	2,824.9	60.7	74.8	281.0	239.2	7.1	8.5	9.8	8.5
Premium	669.7	729.4	2,176.5	2,260.6	91.5	112.2	258.6	326.2	13.7	15.4	11.9	14.4
Professional	255.7	297.3	793.3	799.9	13.0	36.4	55.9	65.8	5.1	12.2	7.0	8.2
Infrastructure	205.2	255.3	631.6	804.8	24.4	37.9	58.0	122.5	11.9	14.8	9.2	15.2
Eliminations	-65.6	-78.1	-212.7	-240.3	-	-	-	-	-	-	-	-
Results by business area		1,918.9 2,079.1 6,265.5 6,449.9			189.6	261.3	653.5	753.7	9.9	12.6	10.4	11.7
IFRS 16	-	-	-	-	3.7	3.9	11.9	13.2	-	-	-	-
Unallocated cost	-	-	-	-	-12.0	-25.6	-67.4	-81.6	-	-	-	-
Operating profit before IAC	-	-	-	-	181.3	239.6	598.0	685.3	9.4	11.5	9.5	10.6
Items affecting comparability	-	-	-	-	-64.7	-	-64.7	-	-	-	-	-
Financial items	-	-	-	-	-41.3	-22.2	-104.8	-91.6	-	-	-	-
Profit before tax	-	-	-	-	75.3	217.4	428.5	593.7	-	-	-	-

500 1,000 1,500 2,000 2,500 3,000 3,500 Q 1-3 24 23 24 23 24 23 24 23

Net sales per business area, MSEK Sales share per business area, %

Operating profit before IAC per BA, MSEK

Infrastructure

Collection

Collection is home to our brands with a global market footprint. All have an international product portfolio and are well-renowned in the lighting designer and architect communities globally. They offer a wide product range with a focus on indoor and outdoor architectural applications.

Brands included are; ateljé Lyktan, iGuzzini, LED Linear and WE-EF with product development and manufacturing facilities in Sweden, Italy, Canada, China, Germany and Thailand. Citygrid is also consolidated in the business area.

Business area order intake for the quarter of 777 (950) MSEK shows an organic reduction of -15.7% and an overall reduction of -18.2%.

Our Collection businesses, operating in the high-end of the market with lighting designers and architects experience the highest number of project delays and postponements. The levels of incoming project opportunities remains at a good level and this provides confidence for the future, however, the decision making processes have lengthened.

Net sales for the quarter were 854 (875) MSEK, an organic increase of +0.5% when adjusted for currency impacts and the operating profit decreased to 60.7 (74.8) MSEK. In Collection there is a high focus on cost base reduction.

During the third quarter all businesses secured many great projects, demonstrating a truly deep portfolio offering and on a wide geographic coverage.

LED Linear secured the project to light the University of California, Santa Barbara, USA, ateljé Lyktan received the order for the publisher Kultur & Natur in Stockholm, Sweden and iGuzzini had a mix including Klotild Palace, Budapest, Hungary and the UK Atomic Energy Agency in Oxford plus The Princess Grace Hospital Centre, Monaco.

Collection	Q3, 2024	Q3, 2023	Q1-3, 2024	Q1-3, 2023
Net sales	853.9	875.2	2,876.8	2,824.9
(of which, intercompany sales)	(29.2)	(36.4)	(94.3)	(104.8)
Operating profit before IAC	60.7	74.8	281.0	239.2
Operating margin before IAC, %	7.1	8.5	9.8	8.5
Sales growth, %	-2.4	-7.5	1.8	0.0
Sales growth, adjusted for exchange rate differences , %	0.5	-13.9	2.4	-6.6
Growth in operating profit before IAC, %	-18.9	-7.9	17.5	-8.2

854

Net sales, MSEK

61

Operating profit before IAC, MSEK

7.1

Premium

Premium focuses on the European market and European-based global customers. Our Premium brands work closely with specifiers and partners to deliver premium projects, often with bespoke solutions. The majority of sales are related to indoor applications and there is also an outdoor offering for specific markets.

Brands included are Fagerhult and LTS with product development and manufacturing facilities in Sweden, Germany and China. Organic Response is also consolidated in this business area.

Business area order intake for the quarter of 636 (608) MSEK shows an impressive organic growth of +6.6%, an overall growth of +4.6%. The year to date organic order intake growth in Premium remains positive at +2.8%.

Net sales for the quarter were 670 (729) MSEK and the operating profit before IAC was 91.5 (112.2) MSEK with an operating margin before IAC of 13.7 (15.4)%.

In Premium during the quarter there was a 9.3 MSEK restructuring charge at LTS, Tettnang in Germany and this is detailed in the IAC table on page 18. The motivation for the restructuring is to reduce the forward cost base. Also, in Premium, the year to date investment in our strategy for smart lighting with Organic Response is 30 MSEK above last year.

Fagerhult, currently enjoying a better period of order intake, secured the renovation order for St Olavs Hospital, Trondheim, Norway and Huddinge Hospital, Sweden.

Premium	Q3, 2024	Q3, 2023	Q1-3, 2024	Q1-3, 2023
Net sales	669.7	729.4	2,176.5	2,260.6
(of which, intercompany sales)	(17.4)	(15.8)	(49.8)	(57.8)
Operating profit before IAC	91.5	112.2	258.6	326.2
Operating margin before IAC, %	13.7	15.4	11.9	14.4
Sales growth, %	-8.2	1.5	-3.7	11.2
Sales growth, adjusted for exchange rate differences , %	-6.4	-3.9	-3.6	6.7
Growth in operating profit before IAC, %	-18.4	-2.7	-20.7	18.9

670

Net sales, MSEK

92

Operating profit before IAC, MSEK

13.7

Professional

Professional focuses mainly on indoor applications for local and neighbouring markets. The brands work closely together with local partners on project specifications to deliver full and complete solutions. Local production and product development allows for tailored solutions with bespoke products delivered within short lead times.

Brands included are; Arlight, Eagle and Whitecroft, with product development and manufacturing facilities in Turkey, Australia and the UK.

Business area order intake for the quarter of 247 (261) MSEK shows an organic decline of -1.9% reducing to -5.4% overall.

Net sales for the quarter were 256 (297) MSEK, an organic decline of -10.6% and the operating profit before IAC was 13.0 (36.4) MSEK.

In Professional during the quarter there was a 3.7 MSEK restructuring charge at Arlight, Ankara in Turkey (refer to the IAC table on page 18). The motivation for the restructuring is to reduce the forward cost base. In Turkey conditions remain challenging. The situation in Australia is stable at a low level and in the UK we see an improvement year on year.

During the quarter Whitecroft secured the first office building at London's innovative Net Zero business and innovation district at Brent Cross, all supplied with Organic Response technology. Arlight secured the advanced lighting project for the new home of Turkish Basketball where the electricity will be generated from solar panels.

Professional	Q3, 2024	Q3, 2023	Q1-3, 2024	Q1-3, 2023
Net sales	255.7	297.3	793.3	799.9
(of which, intercompany sales)	(11.1)	(17.5)	(48.6)	(53.0)
Operating profit before IAC	13.0	36.4	55.9	65.8
Operating margin before IAC, %	5.1	12.2	7.0	8.2
Sales growth, %	-14.0	11.3	-0.8	5.2
Sales growth, adjusted for exchange rate differences , %	-10.6	9.9	3.7	4.5
Growth in operating profit before IAC, %	-64.3	516.9	-15.0	164.3

256

Net sales, MSEK

13

Operating profit before IAC, MSEK

5.1

Infrastructure

Infrastructure provides lighting solutions for environments with specific requirements for installation, durability and robustness. The companies are worldleading in their areas and highly experienced in finding the best solutions for every project and customer. The majority of their sales are within Europe with some global installations.

Brands included are; Designplan, i-Valo and Veko, with product development and manufacturing facilities in UK, Finland and the Netherlands.

Business area order intake for the quarter of 213 (207) MSEK shows an organic growth of +4.8% and an overall growth of +2.9%. Infrastructure has delivered organic order intake growth in each of the last two quarters.

Comparable order intake continues to improve, particularly following the summer at I-Valo and Designplan where both businesses are now ahead of the year to date comparable order intake level.

In the Q2 report and during the earnings call we provided a description of a the review of the Veko business, strategy and structure. This was completed during the third quarter.

As a consequence of this review, at Veko, there was a total of 51.7 MSEK restructuring charges and this is detailed in the IAC table on page 18. The restructuring charges are for two aspects, firstly to reduce the forward cost base and secondly the costs associated with the business-wide structural withdrawal from the horticulture business.

Net sales for the quarter were 205 (255) MSEK, an organic decline of -17.8% and the operating profit before IAC was 24.4 (37.9) MSEK.

Designplan's improved order intake resulted in projects for the UK's Ministry of Justice prison expansion plans at HMP Elmley and Bullingdon plus the project to re-light the heritage Clifton Suspension Bridge near Bristol.

Infrastructure	Q3, 2024	Q3, 2023	Q1-3, 2024	Q1-3, 2023
Net sales	205.2	255.3	631.6	804.8
(of which, intercompany sales)	(8.0)	(8.5)	(20.1)	(24.8)
Operating profit before IAC	24.4	37.9	58.0	122.5
Operating margin before IAC, %	11.9	14.8	9.2	15.2
Sales growth, %	-19.6	8.0	-21.5	27.8
Sales growth, adjusted for exchange rate differences , %	-17.8	-2.6	-21.6	18.1
Growth in operating profit before IAC, %	-35.6	14.5	-52.7	59.7

205

Net sales, MSEK

24

Operating profit before IAC, MSEK

11.9

Financial position

The Group's equity to assets ratio at the end of the reporting period was 55.5 (52.8)% and consolidated equity was 7,305 (7,251) MSEK.

The net debt at the end of the period was 2,460 (2,792) MSEK. Cash and bank balances at the end of the period were 1,258 (1,520) MSEK. Adjusting for cash and bank balances the gross debt was 3,718 (4,312) MSEK. The gross debt includes 747 (763) MSEK relating to IFRS16. Operating cash flow for the quarter was 213.7 (311.5) MSEK.

Pledged assets and contingent liabilities amounted to 17.5 (18.1) MSEK and 37.2 (23.1) MSEK respectively.

Investments

The Group's net investments in non-current assets was 150 (162) MSEK. The figure does not include investments in subsidiaries, which were 0 (0) MSEK.

Employees

The average number of employees during the period was 4,050 (4,064).

Parent company

Fagerhult Group AB operations comprise Group Management, financing, sustainability, legal, HR and business strategy. The profit after financial items was 204.1 (491.9) MSEK. The number of employees during the period was 18 (14).

Accounting principles

The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual accounts Act. The information for the interim period on pages 1-18 is an integral part of this financial report. The Parent Company's interim report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.

Applied accounting principles are unchanged in comparison with those described in Fagerhult Group's annual report for the financial year 2023 besides the retroactive application mentioned below.

Risks and uncertainties

The Group's significant risks and uncertainties consist primarily of business risks, and financial risks associated with currencies and interest rates. Through the company's international operations, the Fagerhult Group is subject to financial exposure arising from currency fluctuations as well as the regionalised uncertainty of political situations.

The most prominent risks, however, are currency risks arising from export sales and imports of raw materials and components. This exposure is reduced by hedging the flow of sensitive currencies, based on individual assessment. Currency risk also arises in the translation of foreign net assets and earnings.

For more information about the company's risks, refer to the 2023 Annual Report and the section on risks on the Group's website.

Nomination committee

Fagerhult Group AB has a Nomination Committee comprising a representative of each of the four largest shareholders or owners in terms of number of votes plus the Chairman of the Board, although this position is without the right to vote.

The Nomination Committee is to be formed after the Chairman of the Board has identified the four largest shareholders in the Company in terms of the number of votes that are to make up the Nomination Committee along with the Chairman. The identity of these shareholders is to be based on the shareholders' register and list of nominees maintained by Euroclear Sweden AB and refer to shareholders registered under their own names or as members of an owner group as per 31 August 2024.

It shall not be necessary to change the composition of the Nomination Committee if only marginal changes in the ownership of shares occur after this control date. If one of the four largest shareholders waives their right to appoint a representative, this right is then transferred to the next shareholder that has the largest shareholding of the shareholders not identified as one of the four largest shareholders on the same date. The mandate period of the Nomination Committee is until a new Nomination Committee is appointed.

The Largest Shareholders as at 31 August 2024

		Share capital and
Name	No. of shares	voting rights,%
Investment AB Latour & Douglas family	85,708,480	48.4%
Fourth Swedish National Pension Fund	14,025,585	7.9%
Nordea funds	11,885,421	6.7%
Handelsbanken funds	6,398,709	3.6%
Alcur funds	4,392,404	2.5%
Didner & Gerge funds	4,046,843	2.3%
Swedbank Robur funds	4,032,431	2.3%
Palmstierna family	3,892,912	2.2%

The Nomination Committee consists of the following individuals together with the names of the shareholders they represent; Jan Svensson as Chairman of the Board of Fagerhult Group AB, Anders Mörck, Investment AB Latour, Jan Särlvik, Fjärde AP-Fonden, Björn Henriksson, Nordea Funds and Sussi Kvart, Handelsbanken Funds.

Questions regarding the nomination committee shall be addressed to the Group's CFO Michael Wood, michael.wood@fagerhultgroup.com

Habo, October 28 2024 Fagerhult Group AB 556110-6203

Bodil Sonesson President and CEO

An investor webcast following the Quarter 3 Report 2024 will be held on 28 October 2024 at 09:30 CET. A link to the webcast and management presentation will be available on http://www.fagerhultgroup.com/investors

In 2025, interim reports will be submitted on 19 February, 28 April, 18 July and 27 October and the Annual General Meeting will be held on 28 April.

For more information contact:

Bodil Sonesson, CEO, +46 722 23 76 02 or Michael Wood, CFO, +46 730 87 46 47

Review report

Fagerhult Group AB Corp. id. 556110-6203

Introduction

We have reviewed the condensed interim financial information (interim report) of Fagerhult Group AB as of 30 September 2024 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm 28 October 2024

KPMG AB KPMG AB

Mathias Arvidsson Anna Harju

Authorized Public Accountant Authorized Public Accountant

Auditor in charge

Group

Condensed financial statements

Income statement

	2024	2023	2024	2023	2023/2024	2023
	Q3	Q3	Q1-3	Q1-3	Oct-Sep	Jan-Dec
Net sales	3 months 1,918.9	3 months 2,079.1	9 months 6,265.5	9 months 6,449.9	12 months 8,376.0	12 months 8,560.4
Cost of goods sold	-1,139.0	-1,246.8	-3,762.5	-3,941.1	-5,035.1	-5,213.7
Gross profit before IAC	779.9	832.3	2,503.0	2,508.8	3,340.9	3,346.7
Items affecting comparability	-46.0	-	-46.0	-	-46.0	-
Gross profit	733.9	832.3	2,457.0	2,508.8	3,294.9	3,346.7
Selling expenses	-450.1	-434.5	-1,349.6	-1,300.0	-1,806.7	-1,757.1
Administrative expenses	-161.7	-191.8	-608.6	-606.3	-806.6	-804.3
Other operating income	13.2	33.6	53.2	82.8	86.3	115.9
Operating profit before IAC	181.3	239.6	598.0	685.3	813.9	901.2
Items affecting comparability	-18.7	-	-18.7	-	-18.7	-
Operating profit	116.6	239.6	533.3	685.3	749.2	901.2
Financial items	-41.3	-22.2	-104.8	-91.6	-158.2	-145.0
Profit before tax	75.3	217.4	428.5	593.7	591.0	756.2
Tax	-21.3	-58.5	-127.6	-157.5	-182.6	-212.5
Net profit for the period	54.0	158.9	300.9	436.2	408.4	543.7
Net profit for the period attributable to shareholders of the Parent Company	54.0	158.8	301.0	436.1	408.4	543.5
Net profit for the period attributable to Non-controlling interests	-	0.1	-0.1	0.1	-	0.2
Sum	54.0	158.9	300.9	436.2	408.4	543.7
Earnings per share, based on net profit for the period attributable to the
shareholders of the Parent Company
Earnings per share before dilution, SEK	0.31	0.90	1.71	2.48	2.32	3.09
Earnings per share after dilution, SEK	0.31	0.90	1.71	2.48	2.32	3.09
Average number of outstanding shares before dilution, thousands	176,332	176,147	176,228	176,147	176,208	176,147
Average number of outstanding shares after dilution, thousands	176,332	176,147	176,228	176,147	176,208	176,147
Number of outstanding shares, thousands	176,332	176,147	176,332	176,147	176,332	176,147
STATEMENT OF COMPREHENSIVE INCOME
Net profit for the period	54.0	158.9	300.9	436.2	408.4	543.7
Other comprehensive income
Items which may not be reclassified in the income statement:
Revaluation of pension plans	-0.7	-0.3	-0.2	5.7	7.2	13.1
Items which may be reclassified in the income statement:
Translation differences	-17.8	-108.0	141.2	126.4	-42.8	-57.6
Other comprehensive income for the period, net after tax	-18.5	-108.3	141.0	132.1	-35.6	-44.5
Total comprehensive income for the period	35.5	50.6	441.9	568.3	372.8	499.2
Total comprehensive income attributable to shareholders of the Parent
Company	35.5	50.6	442.0	568.3	372.7	499.0
Total comprehensive income attributable to Non-controlling interests	0.0	-	-0.1	-	0.1	0.2
Sum	35.5	50.6	441.9	568.3	372.8	499.2

Balance sheet

	30 Sep 2024	30 Sep 2023	31 Dec 2023
Intangible assets	6,201.4	6,299.4	6,118.0
Tangible fixed assets	2,428.9	2,466.6	2,385.6
Financial assets	241.0	226.7	221.6
Inventories	1,273.1	1,409.3	1,278.4
Accounts receivable - trade	1,485.6	1,570.2	1,488.2
Other non-interest-bearing current assets	278.2	253.6	243.4
Cash and cash equivalents	1,257.7	1,519.5	1,272.2
Total assets	13,165.9	13,745.3	13,007.4
Equity	7,305.0	7,251.0	7,184.1
Long-term interest-bearing liabilities	3,459.8	4,001.3	3,407.1
Long-term non-interest-bearing liabilities	560.7	565.4	545.4
Short-term interest-bearing liabilities	257.4	310.3	279.0
Short-term non-interest-bearing liabilities	1,583.0	1,617.3	1,591.8
Total equity and liabilities	13,165.9	13,745.3	13,007.4

Cash flow statement

	2024	2023	2024	2023	2023/2024	2023
	Q3	Q3	Q1-3	Q1-3	Oct-Sep	Jan-Dec
	3 months	3 months	9 months	9 months	12 months	12 months
Operating profit	116.5	239.6	533.3	685.3	749.2	901.2
Adjustments for non-cash items	90.8	83.3	351.2	358.8	391.0	398.6
Financial items	-34.4	-29.8	-104.2	-99.4	-140.7	-135.9
Tax paid	-59.6	-80.9	-178.1	-195.8	-224.9	-242.6
Funds contributed from operating activities before change in working	113.3	212.2	602.2	748.9	774.6	921.3
capital
Change in working capital	100.4	99.3	5.3	95.1	197.7	287.5
Cash flow from operating activities	213.7	311.5	607.5	844.0	972.3	1,208.8
Cash flow from investing activities	-61.6	-30.9	-176.1	-143.4	-258.6	-225.9
Cash flow from financing activities	-63.0	-49.1	-473.6	-492.0	-972.6	-991.0
Cash flow for the period	89.1	231.5	-42.2	208.6	-258.9	-8.1
Cash and cash equivalents at beginning of period	1,168.6	1,307.1	1,272.2	1,291.7	1,168.6	1,291.7
Translation differences in cash and cash equivalents	-	-19.1	27.7	19.2	-2.9	-11.4
Cash and cash equivalents at end of period	1,257.7	1,519.5	1,257.7	1,519.5	906.8	1,272.2

Key ratios and data per share

	2024 Q3	2023 Q3	2024 Q1-3	2023 Q1-3	2023/2024 Oct-Sep	2023 Jan-Dec
	3 Months	3 Months	9 months	9 months	12 months	12 months
Sales growth, %	-7.7	-0.1	-2.9	7.5	-4.0	3.5
Growth in operating profit, %	-51.3	9.5	-22.2	18.4	-20.3	8.1
Growth in profit before tax, %	-65.4	1.4	-27.8	8.1	-29.3	-4.4
Operating margin, %	6.1	11.5	8.5	10.6	8.9	10.5
Profit margin, %	3.9	10.5	6.8	9.2	7.1	8.8
Cash liquidity, %	68.3	78.8	68.3	78.8	68.3	68.0
EBITDA	235	352	881	1,008	1,215	1,341
Net debt/EBITDA ratio	2.62	1.98	2.09	2.08	2.03	1.80
Equity/assets ratio, %	55.5	52.8	55.5	52.8	55.5	55.2
Capital employed, MSEK	11,022	11,563	11,022	11,563	11,022	10,870
Return on capital employed, %	4.4	8.8	7.0	8.6	7.0	8.6
Return on equity, %	3.0	8.8	5.5	8.2	5.6	7.7
Net debt, MSEK	2,460	2,792	2,460	2,792	2,460	2,414
Gross investment in non-current assets, MSEK	44.5	70.2	150.3	161.8	231.1	242.6
Net investment in non-current assets, MSEK	44.5	70.2	150.3	161.8	231.1	242.6
Depreciation/amortisation/impairment of non-current assets, MSEK	118.0	112.7	347.6	322.3	465.3	440.0
Number of employees	4,060	4,077	4,050	4,064	4,074	4,080
Equity per share, SEK	41.43	41.16	41.43	41.16	41.43	40.78
Number of outstanding shares, thousands	176,332	176,147	176,332	176,147	176,332	176,147

For more information about the Key ratios and the definitions applied, please refer to Fagerhult Group AB's website under "Investors/Financials/Definitions." The website also includes the definition of any Alternative Performance Measures used whereas this report details the financial aspect to these.

Changes in equity

Attributable to shareholders of the Parent Company

		Other contributed		Retained	Non controlling
	Share capital	capital	Reserves	earnings	interest	Total equity
Equity at 1 January 2023	100.2	3,194.6	4.3	3,583.2	-0.1	6,882.2
Adjustment for retroactive application			75.2			75.2
Adjusted equity at 1 January 2023	100.2	3,194.6	79.5	3,583.2	-0.1	6,957.4
Net profit for the period				436.1	0.1	436.2
Other comprehensive income for the period			126.4	5.7	-	132.1
Total comprehensive income for the period			126.4	441.8	0.1	568.3
Performance share plan				7.2	-	7.2
Dividend paid				-281.9	-	-281.9
Equity at 30 September 2023	100.2	3,194.6	205.9	3,750.3	0.0	7,251.0
Equity at 1 January 2024	100.2	3,194.6	21.9	3,867.3	0.1	7,184.1
Net profit for the period				301.0	-0.1	300.9
Other comprehensive income for the period			141.2	-0.2	-	141.0
Total comprehensive income for the period			141.2	300.8	-0.1	441.9
Performance share plan				-4.1	-	-4.1
Dividend paid				-317.0	-	-317.0
Equity at 30 September 2024	100.2	3,194.6	163.1	3,847.0	0.0	7,305.0

Parent company

Condensed financial statements

Income statement

	2024 Q3	2023 Q3	2024 Q1-3	2023 Q1-3	2023/2024 Oct-Sep	2023 Jan-Dec
	3 Months	3 Months	9 months	9 months	12 months	12 months
Net sales	13.5	9.6	40.4	28.6	51.7	39.9
Administrative expenses	-17.5	-21.7	-72.8	-74.7	-96.2	-98.1
Operating profit	-4.0	-12.1	-32.4	-46.1	-44.5	-58.2
Income from shares in subsidiaries	-	92.6	162.2	447.4	257.9	543.1
Financial items	11.2	-4.4	74.3	90.6	52.0	68.3
Profit before appropriations and tax	7.2	76.1	204.1	491.9	265.4	553.2
Group contributions received	-	-	-	-	294.0	294.0
Tax	-0.4	3.4	-8.6	-10.6	-61.9	-63.9
Net profit	6.8	79.5	195.5	481.3	497.5	783.3

Balance sheet

	30 Sep	30 Sep	31 Dec
	2024	2023	2023
Financial assets	7,794.5	7,907.4	8,057.8
Other non interest bearing receivables	192.9	107.2	68.0
Cash & Bank	758.6	997.7	733.8
Total assets	8,746.0	9,012.3	8,859.6
Equity	5,448.7	5,268.2	5,571.0
Long-term interest bearing liabilities	2,614.4	3,114.7	2,570.3
Long-term non interest bearing liabilities	15.1	11.5	13.1
Short-term interest bearing liabilities	576.3	587.2	671.7
Short-term non interest bearing liabilities	91.5	30.7	33.5
Total Equity and Liabilities	8,746.0	9,012.3	8,859.6

Changes in equity

	Share capital	Statutory reserve	Retained	earnings Total equity
Equity at 1 January 2023	100.2	159.4	4,806.7	5,066.3
Net profit for the period			481.3	481.3
Performance share program			2.5	2.5
Dividend paid			-281.9	-281.9
Equity at 30 September 2023	100.2	159.4	5,008.6	5,268.2
Equity at 1 January 2024	100.2	159.4	5,311.4	5,571.0
Net profit for the period			195.5	195.5
Performance share plan			-0.8	-0.8
Dividend paid			-317.0	-317.0
Equity at 30 September 2024	100.2	159.4	5,189.1	5,448.7

Net sales, MSEK Operating profit, MSEK

Operating margin, % Earnings per share, SEK

Operating cashflow, MSEK Net debt and Net debt/EBITDA ratio

Key ratios and data per share

					2023/2024
	2020	2021	2022	2023	Oct-Sep 12 months
Net sales, MSEK	6,816.3	7,087.5	8,269.6	8,560.4	8,376.0
Operating profit, MSEK	332.5	706.4	833.3	901.2	749.2
Profit before tax, MSEK	216.7	622.3	791.0	756.2	591.0
Earnings per share, SEK	3.21	2.64	3.27	3.09	2.32
Sales growth, %	-13.1	4.0	16.7	3.5	-4.0
Growth in operating profit, %	-58.2	112.5	18.0	8.1	-20.3
Growth in profit before tax, %	-68.9	187.2	27.1	-4.4	-29.3
Operating margin, %	4.9	10.0	10.1	10.5	8.9
EBITDA	891	1,147	1,257	1,341	1,215
Net debt/EBITDA ratio	3.16	2.27	2.36	1.80	2.03
Equity/assets ratio, %	47.3	49.1	51.6	55.2	55.5
Capital employed, MSEK	10,238	10,563	11,144	10,870	11,022
Return on capital employed, %	3.5	6.9	8.1	8.6	7.0
Return on equity, %	10.1	7.8	8.8	7.7	5.6
Net debt, MSEK	2,812	2,603	2,971	2,414	2,460
Net investment in non-current assets, MSEK	183.6	149.5	179.6	242.6	231.1
Depreciation/amortisation/impairment of non-current assets, MSEK	558.4	440.9	423.5	440.0	465.3
Number of employees	4,419	4,237	4,059	4,080	4,074

Net sales and operating profit, MSEK

Notes

Note 1 – Items affecting comparability (IAC)

		Q3 2024			Q1-3 2024
				Collection Premium Professional Infrastructure	Sum				Collection Premium Professional Infrastructure	Sum
Function
Cost of goods sold	-	-6.0	-	-40.0	-46.0	-	-6.0	-	-40.0	-46.0
Selling expenses	-	-3.3	-	-2.6	-5.9	-	-3.3	-	-2.6	-5.9
Administrative expenses	-	-	-3.7	-9.1	-12.8	-	-	-3.7	-9.1	-12.8
Sum	-	-9.3	-3.7	-51.7	-64.7	-	-9.3	-3.7	-51.7	-64.7
Nature of expense
Restructuring expenses	-	-9.3	-3.7	-51.7	-64.7	-	-9.3	-3.7	-51.7	-64.7
Sum	-	-9.3	-3.7	-51.7	-64.7	-	-9.3	-3.7	-51.7	-64.7
Tax					15.8					15.8

Note that no IAC have been identified for the comparable periods Q3 2023 and Q1 – Q3 2023.