Alligo

Quarterly Report • Oct 29, 2021

1 January-30 September 2021

THIRD QUARTER (1 July-30 September 2021)

• Revenue increased by 9 percent to MSEK 2,209 (2,029).
• EBITA increased by 56 percent to MSEK 200 (128), corresponding to an EBITA margin of 9.1 percent (6.3).
• Operating profit amounted to MSEK 68 (14) and the operating margin to 3.1 percent (0.7). Earnings were charged with items affecting comparability of MSEK –113 (–97), of which MSEK –108 pertained to restructuring costs due to moving TOOLS' Swedish logistics operations to Alligo's central warehouse in Örebro.
• Net profit for the quarter amounted to MSEK 38 (1) and earnings per share totalled SEK 0.75 (0).
• Increased demand was noted from most customers, and both of the Group's business areas continued to deliver a positive performance. The Group maintained its ability to deliver despite certain challenges with materials shortages and increased prices for raw materials and transportation.
• The decision was made to begin preparations ahead of the separate listing of the business area Components & Services, with the aim of listing during the first half of 2022. These preparations resulted in costs affecting comparability of MSEK 5, which were charged to operating profit for the quarter.

REPORTING PERIOD (1 January-30 September 2021)

• Revenue amounted to MSEK 7,094 (5,856), with the change compared with the corresponding period in the preceding year partly attributable to the acquisition of Swedol, which closed in April 2020. Compared with revenue for the corresponding period in the preceding year including Swedol for the entire reporting period (MSEK 6,685), revenue increased by 6 percent.*
• EBITA amounted to MSEK 539 (374), corresponding to an EBITA margin of 7.6 percent (6.4). The change compared with the preceding year is partly attributable to the acquisition of Swedol. Compared with EBITA for the corresponding period in the preceding year including Swedol (MSEK 417), EBITA increased by 29 percent and the EBITA margin amounted to 7.6 percent (6.2).*
• Net profit for the period amounted to MSEK 260 (149) and earnings per share totalled SEK 5.15 (3.80).
• The return on working capital (EBITA/WC) for the most recent 12-month period was 37 percent.
• The equity/assets ratio was 40 percent at the end of the period.
• Cash flow from operating activities amounted to MSEK 431 (702).
• The business area Components & Services completed four corporate acquisitions during the period generating total annual revenue of approximately MSEK 285. The business area Alligo completed one corporate acquisition in Finland generating total annual revenue of approximately MEUR 5.

AFTER THE END OF THE REPORTING PERIOD

• Components & Services acquired Intertechna, with closing taking place after the end of the reporting period, thereby strengthening its offering in digitised maintenance for Nordic industry.
• Alligo acquired the workwear specialist RAF Romerike Arbeidstøy and signed an agreement to divest Gigant in order to refine the operations within the business area.

* ACQUISITION OF SWEDOL CLOSED AS OF 1 APRIL 2020

Momentum Group's acquisition of Swedol was completed during spring 2020 and closed on 1 April 2020. Any instances where the comparative figures in this report include Swedol for the period prior to the closing date on 1 April 2020 are specifically noted. The bases for the financial history including Swedol are presented in a separate press release dated 24 June 2020 – Supplementary financial information relating to the 2019/20 financial year for the Momentum Group.

Momentum Group AB (publ)

Mail address: PO Box 5900, SE-102 40 Stockholm, Sweden │ Visit: Östermalmsgatan 87 D, Stockholm │ Tel: +46 10 454 54 70

PRESIDENT'S STATEMENT

FOCUS ON INCREASED GROWTH AND PROFITABILITY

During the quarter, we noted increased demand from most of our customers. The overall recovery was substantial but varied between our operations depending on their geographic markets and customer segments. Thanks to our proactive efforts, we have managed to maintain our ability to deliver even though we have been affected, to varying degrees, by challenges resulting from materials shortages and increased prices for raw materials and transportation.

The positive performance of most of the Group's operations in the previous quarter continued through the third quarter. Growth for comparable units was 6 percent, and margins and earnings improved in both business areas. In total, EBITA increased by 56 percent compared with the third quarter in the previous year.

Operating profit was charged with costs of MSEK 108 for a restructuring reserve in the business area Alligo regarding the previously announced move of TOOLS' Swedish logistics operations from Alingsås to Alligo's modern central warehouse in Örebro. The move, which is expected to be complete by May 2022, will gather the logistics operations in a modern and highly efficient logistics centre, enabling cost savings through a more efficient flow of goods and increased customer value in the form of better service.

INVESTMENTS FOR THE FUTURE

During the current year, we have carried out seven acquisitions to strengthen our position in each business area. The most recent acquisition in Components & Services is the company Intertechna, one of the leading companies in Sweden in digitised maintenance for industry, which strengthens our technical service offering. After the end of the period, Alligo acquired the Norwegian workwear specialist RAF Romerike Arbeidstøy, which strengthens our presence in Oslo.

SEPARATE LISTING OF BUSINESS AREA COMPONENTS & SERVICES

In September, the Board of Directors gave those of us in management the task of continuing to work on dividing the Group's operations into two independent companies, with the aim of carrying out a separate listing of the business area Components & Services on Nasdaq Stockholm during the first half of 2022. The purpose of the split is to strengthen each business area's conditions for achieving its ambitions in the best possible way, thereby creating increased shareholder value. Ahead of the split, the Board of Directors will propose a name change from the current Momentum Group to Alligo, since it is planned that the business area Components & Services will be listed under the name Momentum Group.

The work to enable this split, where joint functions will be divided into two separate and independent companies, is proceeding according to plan. We have already carried out several activities and these measures have thus far resulted in costs affecting comparability of approximately MSEK 7 being charged to the operating profit for the reporting period.

With a sense of great confidence, I look forward to the planned split of the Group into two independent, listed companies that can each continue their fast-paced journeys. The "new" Momentum Group will continue its work on acquisition-driven growth and Alligo will continue its efforts to realise synergies and economies of scale through the coordination of TOOLS and Swedol. The split will create favourable conditions for long-term profitable growth for both Alligo and the "new" Momentum Group.

Stockholm, October 2021

Ulf Lilius President & CEO

MOMENTUM GROUP IN SUMMARY

								INTERIM REPORT – 9 MONTHS
								1 JANUARY-30 SEPTEMBER 2021
MOMENTUM GROUP IN SUMMARY
		3 MONTHS ENDING			6 MONTHS ENDING			12 MONTHS ENDING
	30 SEP	30 SEP	Δ	30 SEP	30 SEP	Δ	30 SEP	30 SEP
Revenue, MSEK	2021 2,209	2020 2,029	9%	2021 7,094	2020 5,856	21%	2021 9,623	2020 7,444	Δ 29%
1 Revenue including Swedol 2019/20	2,209	2,029	9%	7,094	6,685	6%	9,623	9,340	3%
Operating profit, MSEK	68	14	386%	370	228	62%	555	306	81%
of which: I tems affecting comparability	-113	-97		-115	-106		-115	-115
of which: Amortisation of intangible assets incurred
in connection with corporate acquisitions	-19	-17		-54	-40		-70	-45
EBITA, MSEK	200	128	56%	539	374	44%	740	466	59%
1 EBITA including Swedol 2019/20	200	128	56%	539	417	29%	740	635	17%
Profit after financial items, MSEK	50	2	2400%	330	196	68%	502	268	87%
Net profit (after taxes), MSEK	38	1	3700%	260	149	74%	394	205	92%
Earnings per share, SEK	0.75	0.00		5.15	3.80	36%	7.85	5.75	37%
Operating margin	3.1%	0.7%		5.2%	3.9%		5.8%	4.1%
EBITA margin 1	9.1%	6.3%		7.6%	6.4%		7.7%	6.3%
EBITA margin including Swedol 2019/20	9.1%	6.3%		7.6%	6.2%		7.7%	6.8%
Profit margin	2.3%	0.1%		4.7%	3.3%		5.2%	3.6%
Return on equity							13%	10%
Return on working capital (EBITA/WC) 1							37% 37%	29% 29%
EBITA/WC including Swedol 2019/20 Equity per share, SEK							64.50	58.15	11%
Equity/assets ratio				40%	38%		40%	38%

REVENUE AND PROFIT

THIRD QUARTER (1 July-30 September 2021)

Revenue increased by 9 percent to MSEK 2,209 (2,029). Revenue for comparable units, measured in local currency and adjusted for the number of trading days, rose by approximately 6 percent compared with the corresponding quarter in the preceding year. Exchange-rate translation effects had an impact of MSEK +3 on revenue. The quarter contained the same number of trading days as the corresponding quarter in the preceding year.

Operating profit amounted to MSEK 68 (14). EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets incurred in connection with corporate acquisitions) increased by 56 percent to MSEK 200 (128), equivalent to an EBITA margin of 9.1 percent (6.3). Exchange-rate translation effects had a net impact of MSEK 0 (–1) on operating profit. Operating profit was charged with items affecting comparability of MSEK –113 (–97), of which MSEK –108 pertained to restructuring costs due to moving TOOLS' Swedish logistics operations to Alligo's central warehouse in Örebro. These restructuring costs consist of a restructuring reserve of MSEK 46 and impairment of noncurrent and right-of-use assets of MSEK 62 connected to the logistics facility in Alingsås. Items affecting comparability of MSEK 5 for the quarter (total of MSEK 7 for the reporting period) related to costs for preparations connected to the split of the business area Components & Services.

Profit after financial items totalled MSEK 50 (2) and net profit amounted to MSEK 38 (1), which corresponds to earnings per share of SEK 0.75 (0.00) for the quarter.

REPORTING PERIOD (1 January-30 September 2021)

Revenue amounted to MSEK 7,094 (5,856), with the change compared with the corresponding period in the preceding year partly attributable to the acquisition of Swedol, which closed in April 2020. Compared with revenue for the corresponding period in the preceding year including Swedol for the entire reporting period (MSEK 6,685), revenue increased by 6 percent. Revenue for comparable units (including Swedol), measured in local currency and adjusted for the number of trading days, increased by more than 4 percent compared with the corresponding period in the preceding year. Exchange-rate translation effects had an impact of MSEK –20 on revenue for comparable units (including Swedol). The reporting period contained the same number of trading days as the corresponding period in the preceding year.

Operating profit amounted to MSEK 370 (228), with the change compared with the corresponding period in the preceding year partly attributable to the acquisition of Swedol. EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets incurred in connection with corporate acquisitions) amounted to MSEK 539 (374). Compared with EBITA for the corresponding period in the preceding year including Swedol for the entire reporting period (MSEK 417), EBITA increased by 29 percent, with an EBITA margin of 7.6 percent (6.2). Operating profit was charged with depreciation of MSEK –61 (–33) on tangible non-current assets, amortisation of MSEK –86 (–63) on intangible noncurrent assets and items affecting comparability of MSEK –115 (–106). Exchange-rate translation effects had a net impact of MSEK 0 (–2) on operating profit.

Profit after financial items totalled MSEK 330 (196) and net profit amounted to MSEK 260 (149), which corresponds to earnings per share of SEK 5.15 (3.80) for the reporting period.

OPERATIONS

MARKET AND THE IMPACT OF THE COVID-19 PANDEMIC

General demand during the third quarter continued to recover compared with the 2020 financial year. An increasing number of customer segments saw positive changes in demand during the quarter. Due to a global increase in demand, the shortage of materials and resources in some of the Group's product areas as well as transportation disruptions dampened sales to a certain extent. The current situation has not led to any changes in material bases of judgement compared with those applied in the Annual Report for 2020. QUARTER REPORTING PERIOD

Sales performance

			* Since Momentum Group changed its financial year to the calendar year, the 2020 financial year
	covered the 1 April to 31 December 2020 period (9 months).
OPERATIONS
	includes the Group's management, finance function and support functions.		The Momentum Group comprises two business areas – Alligo and Components & Services. Group-wide
2020. Sales performance			General demand during the third quarter continued to recover compared with the 2020 financial year. An increasing number of customer segments saw positive changes in demand during the quarter. Due to a global increase in demand, the shortage of materials and resources in some of the Group's product areas as well as transportation disruptions dampened sales to a certain extent. The current situation has not led to any changes in material bases of judgement compared with those applied in the Annual Report for
		QUARTER	REPORTING PERIOD
		JUN-SEP 2021	JAN-SEP 20211
Change in revenue for:
	Comparable units in local currency	6.0%	4.2%
Currency effects		0.1%	-0.3%
Number of trading days		0.0%	-0.1%
Acquisitions and other2 Total change		2.7% 8.8%	2.3% 6.1%

BUSINESS AREA ALLIGO

The business area comprises Swedol and TOOLS with Univern and Grolls, and Mercus Yrkeskläder, TriffiQ Företagsprofilering, Reklamproffsen and Company Line, which offer products and services related to tools, consumables, workwear, personal protective equipment, workplace equipment as well as promotional products for the industrial, construction and public sectors in the Nordic region, among others.

Comments from Clein Johansson Ullenvik, Business Area Manager:

During the quarter, we saw increased demand in Sweden, while growth in Norway and Finland was weaker. We implemented price increases during the period to compensate for the increases from our suppliers. Problems in the shipping market have led us to delay the launch of TOOLS' proprietary brands in the summer until the fourth quarter of 2021.

During the quarter, we announced that we are considering moving TOOLS' Swedish logistics operations from Alingsås to our central warehouse in Örebro. There are significant advantages to be gained by coordinating inventories and distribution in Sweden. Gathering all our logistics in a modern and highly efficient logistics centre will enable cost savings through a more efficient flow of goods and increased

customer value in the form of better service. The annual cost savings are expected to amount to approximately MSEK 25.

This decision means that we will not use the logistics centre in Alingsås for the remaining period of approximately six years, which in turn has resulted in restructuring costs related to the remaining time on the lease and other property-related expenses. These restructuring costs, which amount to MSEK 108, have thus been charged to operating profit for the quarter. The move also involves an investment of MSEK 19 in Örebro.

After the end of the quarter, an agreement was signed to divest Gigant, which offers comprehensive solutions for the workplace, lifting and loading as well as environmental assurance for warehouses, industrial operations and engineering businesses. It is unusual for us to divest companies, but this will simplify the structure in Alligo, since Gigant's customers are resellers and Alligo focuses on selling directly to the end customer. However, workplace equipment is an attractive area that Alligo will continue to invest in together with professional partners, including Gigant. 3 MONTHS ENDING 12 MONTHS ENDING 9 MONTHS ENDING

MSEK 19 in Örebro.
Several expansions and automated processes have been added to the logistics centre in Örebro since it went into operation in 2012. The entire facility was expanded as recently as 2020, and further investments in automation are now being made in order to handle volumes from TOOLS. We expect the move to be finished before May next year.
After the end of the quarter, an agreement was signed to divest Gigant, which offers comprehensive solutions for the workplace, lifting and loading as well as environmental assurance for warehouses, industrial operations and engineering businesses. It is unusual for us to divest companies, but this will simplify the structure in Alligo, since Gigant's customers are resellers and Alligo focuses on selling directly to the end customer. However, workplace equipment is an attractive area that Alligo will continue to invest in together with professional partners, including Gigant.
During the third quarter, we finished defining our strategic goals. These goals, together with our mission, vision and the values we launched during the second quarter, form a strategic map for Alligo that establishes how to effectively conduct operations going forward.
NOTE: The business area is presented below as of 1 April 2020, with comparative figures as though the acquisition of Swedol and other changes in the business area's structure had taken place as of 1 April 2019. For information about the outcome for each business area (operating segment) for the preceding year excluding Swedol, refer to the table in Note 2.
	3 MONTHS ENDING 9 MONTHS ENDING		12 MONTHS ENDING
	30 SEP 2021	30 SEP 2020	30 SEP 2021	30 SEP 2020	30 SEP 2021	30 SEP 2020
REVENUE, MSEK
Sweden	1,120	1,048	3,676	3,468	5,101	4,836
Norway	501	496	1,595	1,584	2,164	2,250
Finland	313	288	938	929	1,250	1,255
Other countries	9	7	24	20	35	30
Eliminations	-69	-58	-205	-156	-280	-182
	1,874	1,781	6,028	5,845	8,270	8,189
Total BA
				217	464	353
EBITA, MSEK Sweden	127	63	331
Norway	19	17	48	39	71	67
Finland	8	14	27	52	34	65
Other countries	0	0	0	-1	1	0
Total BA	154	94	406	307	570	485
EBITA MARGIN, %
Sweden	11.3%	6.0%	9.0%	6.3%	9.1%	7.3%
Norway Finland	3.8% 2.6%	3.4% 4.9%	3.0% 2.9%	2.5% 5.6%	3.3% 2.7%	3.0% 5.2%
Other countries	0.0%	0.0%	0.0%	-5.0%	2.9%	0.0%
Total BA	8.2%	5.3%	6.7%	5.3%	6.9%	5.9%
OTHER INFORMATION Return on working capital (EBITA/WC), %					33.0%	25.0%

Revenue for comparable units rose by 5 percent during the quarter and EBITA increased by 64 percent compared with the corresponding quarter in the preceding year. This growth in sales and earnings was attributable to a recovery over the comparative period as well as stable organic growth in small and medium-sized companies in Sweden, price adjustments and synergy gains. Challenges remain within the industrial segment and we are continuing with planned store integrations, sales promotion improvements and better standardising of the range to be more efficient and to improve profitability going forward.

BUSINESS AREA COMPONENTS & SERVICES

This business area comprises Momentum Industrial, Öbergs i Karlstad, ETAB Industriautomation, Rörick El. Verkstad, Mekano and Mekano i Sävedalen, Carl A Nilssons El. Rep. Verkstad, Intertechna and JNF Køge, which offer solutions, spare parts, services and repairs to customers in the industrial sector in the Nordic region.

Comments from Ulf Lilius, Business Area Manager:

The sales trends for all of the business area's operations were positive during the third quarter, and many of our customers have indicated that they are optimistic about the outlook for the rest of the year. This makes us optimistic about continued volume increases in the future, even if there are currently challenges when it comes to the availability and increased lead times of certain products. Thanks to our proactive efforts, which are continuing unabated, we have managed to maintain our ability to deliver. 3 MONTHS ENDING 12 MONTHS ENDING 9 MONTHS ENDING

Køge, which offer solutions, spare parts, services and repairs to customers in the industrial sector in the Nordic region.							El. Verkstad, Mekano and Mekano i Sävedalen, Carl A Nilssons El. Rep. Verkstad, Intertechna and JNF
Comments from Ulf Lilius, Business Area Manager: The sales trends for all of the business area's operations were positive during the third quarter, and many of our customers have indicated that they are optimistic about the outlook for the rest of the year. This makes us optimistic about continued volume increases in the future, even if there are currently challenges when it comes to the availability and increased lead times of certain products. Thanks to our proactive efforts, which are continuing unabated, we have managed to maintain our ability to deliver.
Measures taken to increase efficiency, price adjustments and a favourable product mix contributed to a continued stable earnings performance, favourable profitability and good cash flows.
During the quarter, we took another exciting step in our journey of growth by acquiring Intertechna. Together, we are strengthening our offering in the development and digitisation of production and maintenance. Intertechna offers cutting-edge expertise and we see great opportunities for further development, growth and acquisitions in digitised maintenance for Nordic industry. We have an established growth strategy focused on attractive, profitable and sustainable companies. The strategy is to acquire and develop companies that focus on components and services within developable
niches, and we are continuing to regularly evaluate attractive acquisition opportunities.
	3 MONTHS ENDING		9 MONTHS ENDING		12 MONTHS ENDING
	30 SEP	30 SEP	30 SEP	30 SEP	30 SEP	30 SEP
REVENUE, MSEK Total BA	2021 343	2020 256	2021 1,089	2020 867	2021 1,385	2020 1,190
EBITA, MSEK Total BA	51	37	144	116	184	155
EBITA MARGIN, % Total BA	14.9%	14.5%	13.2%	13.4%	13.3%	13.0%
OTHER INFORMATION Return on working capital (EBITA/WC), %					70.0%	62.0%

The sales and earnings performance in the business area as a whole was positive during the third quarter. Revenue for comparable units rose by 16 percent during the quarter compared with the corresponding quarter in the preceding year, which was dominated by the effects of the COVID-19 pandemic. The operations acquired during 2021 have contributed approximately MSEK 140 in sales so far this year.

Demand in most of the product areas in Momentum Industrial was strong during the quarter, primarily from customers in the steel and mining industry as well as the manufacturing industry. For many industrial customers, maintenance work continues to contribute to favourable business opportunities. Increased sales, improved margins and the previously implemented measures to increase cost efficiency contributed to a positive earnings performance during the quarter.

Öbergs i Karlstad and ETAB Industriautomation, in industrial components, and Rörick Elektriska Verkstad, the Mekano companies and Carl A Nilsson, in technical service and repairs, continued to perform well during the quarter and made a positive contribution to the business area's development.

GROUP-WIDE AND ELIMINATIONS

EBITA for "Group-wide and eliminations" amounted to MSEK –11 (–6) for the January-September reporting period and items affecting comparability to MSEK –5 (–7) pertaining to costs for advisors in connection with the preparations for the separate listing of the business area Components & Services. Items affecting comparability in the previous year pertained to the acquisition of Swedol. Accordingly, an operating loss of MSEK –16 (–13) was reported.

The Parent Company's revenue for the reporting period amounted to MSEK 17 (22) and the loss after financial items totalled MSEK –11 (–9). The results include no Group contributions (–).

EMPLOYEES

At the end of the reporting period, the number of employees in the Group amounted to 2,810, compared with 2,670 at the beginning of the year. The change in the number of employees is mainly attributable to the corporate acquisitions that were carried out during the reporting period.

CORPORATE ACQUISITIONS

To date, Momentum Group has conducted seven corporate acquisitions with closing during 2021.

Acquisition of electromechanical workshops from Assemblin.

With the aim of further strengthening the Group's market position in service and maintenance for Swedish industry, an agreement was signed to acquire three electromechanical service workshops from Assemblin El AB in early February 2021. The acquired workshops, which have their origin in NEA workshops (Närkes Elektriska), generate annual revenue of approximately MSEK 90 with favourable profitability and have some 45 employees. The acquisition was conducted as a conveyance of assets and liabilities with closing in early April 2021.

Acquisitions of Mekano and Mekano i Sävedalen.

Momentum Group also signed an agreement in early February 2021 to acquire 70 percent of the shares of Mekano AB and 100 percent of the shares of Mekano i Sävedalen AB, further strengthening the Group's market position in service and maintenance for Swedish industry. Mekano is one of Sweden's leading suppliers of products and services for the industrial services market, and the two Mekano companies generate combined annual revenue of approximately MSEK 145 with favourable profitability and have some 85 employees. Closing took place in February 2021.

Acquisition of Öbergs i Karlstad.

In early February 2021, Momentum Group acquired 100 percent of the shares in Öbergs i Karlstad AB ("Öbergs"). The acquisition of Öbergs, a market-leading specialist company in pneumatics in Sweden, further strengthens the Group's position as a leading supplier of industrial components and related services to Swedish industry. Öbergs generates annual revenue of approximately MSEK 50 with favourable profitability and has 12 employees. Closing took place in conjunction with the acquisition.

Acquisition of industrial reseller Imatran Pultti in Finland.

In late April 2021, Momentum Group acquired 100 percent of the shares in Imatran Pultti Oy with its subsidiary Beranger Oy ("Imatran Pultti"). Imatran Pultti has two stores in Imatra in southeast Finland that offer personal protective equipment, tools, fasteners and industrial components, and the acquisition further strengthens TOOLS' position as a leading supplier to Finnish industry. The acquired businesses generate combined annual revenue of approximately MEUR 5 with favourable profitability and have 11 employees. Closing took place at the end of April 2021.

AFTER THE END OF THE REPORTING PERIOD

Acquisition of digitised maintenance expert Intertechna in Hammarö

In late August 2021, Momentum Group acquired 100 percent of the shares in Intertechna AB. The acquisition of Intertechna, a specialist company in digitised maintenance for industry, further strengthens the business area Components & Services' position as a leading supplier of industrial components and related services to Swedish industry. The acquired company generates annual revenue of approximately MSEK 25 and has eight employees. Closing took place on 1 October 2021.

Acquisition of workwear specialist RAF Romerike Arbeidstøy

On 4 October 2021, the Alligo business area acquired 100 percent of the shares in RAF Romerike Arbeidstøy AS. The purchase further strengthens Alligo's position as a leading supplier in the Norwegian market. The acquired business generates annual revenue of approximately MNOK 16 with favourable profitability. Closing took place in conjunction with the acquisition and is expected to have a marginally positive effect on earnings per share during the current financial year.

Divestment of Gigant

On 5 October 2021, Alligo signed an agreement to divest all shares in Gigant AB and its subsidiaries. The divestment refines Alligo's role as a partner for end customers, primarily within the industrial and construction sectors. The divested operations generated revenue of approximately MSEK 230 in 2020. The conveyance of Gigant is expected to take place at the beginning of November and to have a marginally negative effect on Momentum Group's earnings.

Refer to the summary of acquisitions completed since the 2015/16 financial year on page 16.

PROFITABILITY, CASH FLOW AND FINANCIAL POSITION

The Group's profitability, measured as the return on equity, amounted to 13 percent (10) and the return on working capital (EBITA/WC) to 37 percent (29) for the most recent 12-month period. The return on capital employed for the corresponding period was 10 percent (9).

Cash flow from operating activities before changes in working capital for the reporting period totalled MSEK 730 (581). During the period, inventories increased by MSEK 170 and operating receivables by MSEK 160 due to a higher level of activity. Operating liabilities rose by MSEK 31. Accordingly, cash flow from operating activities for the period amounted to MSEK 431 (702).

Cash flow for the reporting period was also impacted in a net amount of MSEK –101 (–105) pertaining to investments in and divestments of non-current assets, and a net amount of MSEK –127 (–1,752) pertaining to acquisitions of subsidiaries and other business units. Investments in non-current assets are mainly pertained to the implementation of a new business system in Finland, store adaptations and the continued expansion of the Group's warehouse and logistics facility in Örebro within the business area Alligo. Class A shares 1,062,436 Class B shares 49,843,753 Total number of shares before repurchasing 50,906,189 Less : Repurchased Class B shares –425 300

At the end of the reporting period, the Group's financial net loan liability amounted to MSEK 2,526, compared with MSEK 2,331 at the beginning of the financial year. At the end of the period, the Group's operational net loan liability amounted to MSEK 1,462, compared with MSEK 1,293 at the beginning of the financial year. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 1,193. The equity/assets ratio at the end of the reporting period was 40 percent.

Equity per share totalled SEK 64.50 at the end of the reporting period, compared with SEK 60.25 at the beginning of the financial year.

SHARE STRUCTURE AND REPURCHASE OF OWN SHARES

At the end of the reporting period, the share capital totalled MSEK 102. The distribution by class of share on 30 September 2021 was as follows:

pertaining to acquisitions of subsidiaries and other business units. Investments in non-current assets are mainly pertained to the implementation of a new business system in Finland, store adaptations and the continued expansion of the Group's warehouse and logistics facility in Örebro within the business area
At the end of the reporting period, the Group's financial net loan liability amounted to MSEK 2,526,
1,193. The equity/assets ratio at the end of the reporting period was 40 percent.
Equity per share totalled SEK 64.50 at the end of the reporting period, compared with SEK 60.25 at the
1,062,436
49,843,753
50,906,189
–425 300 50,480,889
	compared with MSEK 2,331 at the beginning of the financial year. At the end of the period, the Group's operational net loan liability amounted to MSEK 1,462, compared with MSEK 1,293 at the beginning of the financial year. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK SHARE STRUCTURE AND REPURCHASE OF OWN SHARES At the end of the reporting period, the share capital totalled MSEK 102. The distribution by class of share AS OF 30 SEPTEMBER 2021

As of 31 December 2020, Momentum Group's holding of Class B treasury shares totalled 500,000. Within the framework of the 2017 share-based incentive programme, a total of 14,000 call options 2017/21 were redeemed during the first quarter and a total of 60,700 call options 2017/21 during the second quarter of 2021 to acquire an equivalent number of repurchased shares. Accordingly, Momentum Group's holding of Class B treasury shares as of 30 September 2021 amounted to 425,300, corresponding to 0.8 percent of the total number of shares and 0.7 percent of the total number of votes.

The shares held in treasury cover the Company's obligations in the call option programmes issued to senior management in December 2017 and September 2018, respectively. The redemption price for the 250,000 call options issued in connection with the 2017 share-based incentive programme was SEK 119.30 per share¹ . Each call option in this programme entitles the holder to acquire one repurchased Class B share during the redemption periods of 18-25 February and 12-25 May 2021, respectively. After the redemption and repurchase of 74,700 and 175,300 call options, respectively, the 2017/21 programme was concluded in May 2021.

The redemption price for the 250,000 call options issued in connection with the 2018 share-based incentive programme is SEK 137.30 per share. Each call option in this programme entitles the holder to acquire one repurchased Class B share during the redemption periods of 14-28 February and 16-30 May 2022, respectively. As of 30 September 2021, there were 240,000 call options 2018/22 outstanding.

The share price on 30 September 2021 was SEK 200.00 and the call options outstanding on the shares repurchased by the Company according to the above resulted in a dilution effect of approximately 0.15 percent and 0.1 percent for the third quarter of 2021 and the reporting period, respectively. Refer also to page 13.

There have been no changes in the holding of treasury shares after the end of the reporting period.

TRANSACTIONS WITH RELATED PARTIES

No transactions having a material impact on the Group's position or earnings occurred between Momentum Group and its related parties during the reporting period.

RISKS AND UNCERTAINTIES

Momentum Group's earnings, financial position and strategic position are impacted by a number of internal factors that are within the control of Momentum Group as well as a number of external factors where the Group's ability to influence the course of events is limited. The most important external risk factors for Momentum Group are the economic and market situation as well as the development in the number of employees in the industrial and construction sectors combined with structural changes and the

¹ The original redemption price per call option for the 2017 share-based incentive programme of SEK 121.60 has been recalculated by Nordea Bank in accordance with the terms of the incentive programme due to paid and adopted dividends between 2018 and 2021.

1 JANUARY-30 SEPTEMBER 2021

competitive situation. The risks and uncertainties impacting the Group are the same as in earlier periods, although uncertainty over future developments in the market and demand remain, as in the previous year, due to the COVID-19 pandemic. For more detailed information about the Group's other risks and uncertainties, refer to page 43 of Momentum Group's Annual Report for 2020. The Parent Company is impacted indirectly by the above risks and uncertainties through its function in the Group.

EVENTS AFTER THE END OF THE REPORTING PERIOD

Acquisition of digitised maintenance expert Intertechna in Hammarö

In late August 2021, Momentum Group acquired 100 percent of the shares in Intertechna AB. Closing took place on 1 October 2021. Read more about the acquisitions on page 7.

Acquisition of RAF Romerike Arbeidstøy and divestment of Gigant

In early October 2021, Alligo acquired the workwear specialist RAF Romerike Arbeidstøy and signed an agreement to divest Gigant in order to refine its operations. Read more about the acquisitions on page 7.

Coordination of Swedish logistics operations in Alligo

After the end of the period, the Board decided to move TOOLS' Swedish logistics operations from Alingsås to Alligo's central warehouse in Örebro.

Stockholm, 29 October 2021

Ulf Lilius President & CEO

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

Contact information

Ulf Lilius, President & CEO, Tel: +46 10 454 54 70 Niklas Enmark, CFO, Tel: +46 70 393 66 73

Dates for forthcoming financial information

Presentation of Interim Report (9 months) – A teleconference will be held today, Friday, 29 October 2021 at 11:00 a.m. Refer to www.momentum.group for information about telephone numbers and the link to the webcast.

Financial Report 2021 – 1 January-31 December 2021 will be published on 15 February 2022.

Annual Report for the 2021 Financial Year will be published on 23 March 2022.

Interim Report (3 months) – 1 January-31 March 2022 will be published on 28 April 2022.

The 2022 Annual General Meeting will be held in Stockholm on 11 May 2022.

Interim Report (6 months) – 1 January-30 June 2022 will be published on 15 July 2022.

Interim Report (9 months) – 1 January-30 September 2022 will be published on 28 October 2022.

Visit www.momentum.group to subscribe for reports and press releases.

The information in this report is such that Momentum Group 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 above, at 8:00 a.m. CEST on 29 October 2021.

Momentum Group AB (publ)

Mail address: PO Box 5900, SE-102 40 Stockholm, Sweden Visit: Östermalmsgatan 87 D, Stockholm Tel: +46 10 454 54 70 Org No: 559072-1352 Reg office: Stockholm www.momentum.group

GROUP SUMMARY

INCOME STATEMENT

					INTERIM REPORT – 9 MONTHS
					1 JANUARY-30 SEPTEMBER 2021
GROUP SUMMARY
INCOME STATEMENT
	QUARTER JUL-SEP JUL-SEP		REPORTING PERIOD JAN-SEP JAN-SEP		ROLLING 12 MON	FINANCIAL YEAR 2020
MSEK	2021	2020	2021	2020	AS OF 30 SEP 2021	(9 mon)
Revenue	2,209	2,029	7,094	5,856	9,623	6,846
Other operating income	2	7	15	12	19	15
Total operating income	2,211	2,036	7,109	5,868	9,642	6,861
Cost of goods sold	-1,261	-1,276	-4,127	-3,627	-5,646	-4,177
Personnel costs	-435	-380	-1,453	-1,102	-1,918	-1,271
Depreciation, amortisation, impairment losses and reversal of impairment losses	-202	-182	-474	-386	-613	-459
Other operating expenses	-245	-184	-685	-525	-910	-621
Total operating expenses	-2,143	-2,022	-6,739	-5,640	-9,087	-6,528
Operating profit	68	14	370	228	555	333
Financial income	0	1	2	4	2	3
Financial expenses	-18	-13	-42	-36	-55	-42
Net financial items	-18	-12	-40	-32	-53	-39
Profit after financial items	50	2	330	196	502	294
Taxes	-12	-1	-70	-47	-108	-65
Net profit	38	1	260	149	394	229
Of which, attributable to: Parent Company shareholders Non-controlling interest	37	1 1 0	259 1	147 2	394 0	228 1
Earnings per share, SEK – before dilution	0.75 0.75	0.00 0.00	5.15 5.15	3.80 3.80	7.85 7.85	4.55 4.55

STATEMENT OF COMPREHENSIVE INCOME

Financial income	0	1	2	4	2	3
Financial expenses	-18	-13	-42	-36	-55	-42
Taxes	-12	-1	-70	-47	-108	-65
Of which, attributable to: Parent Company shareholders Non-controlling interest	37	1 1 0	259 1	147 2	394 0	228 1
Earnings per share, SEK – before dilution	0.75	0.00	5.15	3.80	7.85	4.55
– after dilution	0.75	0.00	5.15	3.80	7.85	4.55
STATEMENT OF COMPREHENSIVE INCOME	QUARTER			REPORTING PERIOD	ROLLING 12 MON	FINANCIAL YEAR 2020
MSEK	JUL-SEP 2021	JUL-SEP 2020	JAN-SEP 2021	JAN-SEP 2020	AS OF 30 SEP 2021	(9 mon)
Net profit OTHER COMPREHENSIVE INCOME FOR THE PERIOD	38	1	260	149	394	229
Components that will not be reclassified to net profit
Remeasurement of defined-benefit pension plans		0 -3	1	-4	3	-2
Tax attributable to components that will not be reclassified
	0 0	1 -2	0 1	1 -3	-1 2	0 -2
Components that will be reclassified to net profit
Translation differences	12	1	37	-36	14	-37
Fair value changes for the year in cash-flow hedges Tax attributable to components that will	2	-3	18	-15	9	-27
be reclassified	0	1	-4	4	-2	6
	14	-1	51	-47	21	-58
Other comprehensive income for the period	14	-3	52	-50	23	-60
					417	169
Total comprehensive income for the period	52	-2	312	99
Of which, attributable to: Parent Company shareholders	51	-2	311	97	417	168

BALANCE SHEET

			INTERIM REPORT – 9 MONTHS
			1 JANUARY-30 SEPTEMBER 2021
BALANCE SHEET
MSEK	30 SEP 2021	30 SEP 2020	31 DEC 2020
ASSETS
Non-current assets
Intangible non-current assets	2,853	2,767	2,784
Tangible non-current assets	529	526	506
Right-of-use assets Financial investments	941 1	964 1	952 1
Deferred tax assets	91	49	70
Total non-current assets	4,415	4,307	4,313
Current assets
Inventories	1,991	1,823	1,761
Accounts receivable	1,315	1,187	1,141
Other current receivables Cash and cash equivalents	273 145	213 88	222 375
Total current assets	3,724	3,311	3,499
TOTAL ASSETS	8,139	7,618	7,812
EQUITY AND LIABILITIES Equity
Equity attributable to Parent Company
shareholders	3,257	2,931	3,037
Non-controlling interest Total equity	19 3,276	13 2,944	14 3,051
Non-current liabilities
Non-current interest-bearing liabilities Non-current lease liabilities	1,483 670	1,614 647	1,544 641
Provisions for pensions	33	35	34
Other non-current liabilities and provisions	440	352	378
Total non-current liabilities	2,626	2,648	2,597
Current liabilities
Current interest-bearing liabilities	124	120	124
Current lease liabilities Accounts payable	361 1,021	365 966	363 1,022
Other current liabilities	731	575	655
Total current liabilities	2,237	2,026	2,164
TOTAL LIABILITIES	4,863	4,674	4,761
TOTAL EQUITY AND LIABILITIES	8,139	7,618	7,812
Financial net loan liability	2,526 1,462	2,693 1,646	2,331 1,293

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CHANGES IN EQUITY Equity attributable to Parent Company shareholders Closing equity, 31 December 2019 Non-controlling Share capital Retained earnings, MSEK Reserves Total interest including net profit Closing equity, 31 December 2019 57 4 1,284 1,345 18 Net profit 147 147 2 Other comprehensive income -47 -3 -50 Non-cash issue1 45 1,442 1,487 Acquisitions of partly owned subsidiaries – 1 Changes in share of partly owned subsidiaries 1 1 -8 Option liability, acquisitions -1 -1 Change in value of option liability2 2 2 Closing equity, 30 September 2020 102 -43 2,872 2,931 13 Net profit 135 135 -1 Other comprehensive income -30 1 -29 Contributions in partly owned subsidiaries – 2 Closing equity, 31 December 2020 102 -73 3,008 3,037 14 Net profit 259 259 1 Other comprehensive income 51 1 52 Dividend -76 -76 Repurchase of share options -3 -3 Sale of own shares 9 9 Acquisitions of partly owned subsidiaries – 10 Changes in share of partly owned subsidiaries -5 -5 -5 Dividend paid in partly owned subsidiaries – -1 Change in value of option liability2 -1 -1 Option liability, acquisitions3 -15 -15
Total equity 1,363 149 -50 1,487 1 -7 -1 2 2,944 134 -29 2 3,051 260 52 -76 -3 9 10 -10 -1 -1 -15
INTERIM REPORT – 9 MONTHS
1 JANUARY-30 SEPTEMBER 2021
Closing equity, 30 September 2021 102 -22 3,177 3,257 19 3,276
1 A new issue of a total of 22,633,876 Class B shares pertaining to the public offer to shareholders in Swedol AB (publ) during the first quarter of 2020 and 6,897 Class B shares during the second quarter of 2020. 2 Pertains to a change in the value of the call/put options in relation to non-controlling interests carried out in conjunction with the acquisitions of partly owned subsidiaries. 3 Refers to the value of call/put options in relation to non-controlling interests in the acquired subsidiary Mekano AB, which entail that: a) Momentum

Acquisitions of partly owned subsidiaries					–	10 10
Change in value of option liability2
Pertains to a change in the value of the call/put options in relation to non-controlling interests carried out in conjunction with the acquisitions of partly owned subsidiaries. Refers to the value of call/put options in relation to non-controlling interests in the acquired subsidiary Mekano AB, which entail that: a) Momentum Group is entitled to purchase the remaining shares from the shareholders (call option), and b) the shareholders are entitled to sell their shares to Momentum Group (put option). The call options expire during the 2025 financial year and can thereafter be extended for a period of one year at a time. The put options can be exercised until the 2024 financial year. The price of the options is dependent on certain results being achieved in the Company.
CASH-FLOW STATEMENT
				REPORTING PERIOD	ROLLING 12 MON	FINANCIAL YEAR
MSEK	QUARTER JUL-SEP 2021	JUL-SEP 2020	JAN-SEP 2021	JAN-SEP 2020	AS OF 30 SEP 2021	2020 (9 mon)
Operating activities
Operating activities before changes in
working capital	242	211	730	581	1,034	763
Changes in working capital	-297	9	-299	121	-114	323
Cash flow from operating activities	-55	220	431	702	920	1,086
Investing activities Acquisition of intangible & tangible non-
current assets	-26	-46	-101	-105	-149	–149
Sale of intangible & tangible non-
current assets	0	0	0	0	0	0
Acquisition of subsidiaries & other business units	-	-51	-127	-1,753	-131	-1,749
Sale of financial non-current assets	0	1	0	1	0	1
Cash flow from investing activities	-26	-97	-228	-1,857	-280	-1,897
Cash flow before financing	-81	123	203	-1,155	640	–811
Financing activities
Financing activities	-93	-65	-436	1,208	-585	31
Cash flow for the period	-174	58	-233	53	55	–780
Cash and cash equivalents at the beginning of the period	317	29	375	37	88	1,157
Exchange-rate differences in cash and cash equivalents Cash and cash equivalents at the end	2	1	3	-2	2	–2

CASH-FLOW STATEMENT

KEY PER-SHARE DATA

			INTERIM REPORT – 9 MONTHS
	QUARTER		REPORTING PERIOD
SEK
Earnings before dilution	JUL-SEP 2021 0.75	JUL-SEP 2020 0.00	JAN-SEP 2021 5.15
KEY PER-SHARE DATA Earnings after dilution	0.75	0.00	5.15
Equity, at the end of the period			64.50
NUMBER OF SHARES OUTSTANDING IN THOUSANDS
Number of shares outstanding before dilution	50,481	50,406	50,481
Weighted number of shares outstanding before dilution	50,406	50,406	50,413

Weighted number of shares and dilution

PARENT COMPANY IN SUMMARY

INCOME STATEMENT

Weighted number of shares and dilution Average number of shares outstanding before or after dilution. Shares held by Momentum Group at any given time are not included in the number of shares outstanding. Dilution effects arise due to any call options issued by the Company that can be settled using shares in share-based incentive programmes. In such cases, the call options have a dilution effect when the average share price during the period is higher than the redemption price of the options. After the redemption or repurchase of a total of 74,700 and 175,300 call options, respectively, Momentum Group concluded the 2017/21 call option programme in May 2021 and the Company thereafter held 425,300 Class B shares as of 30 September 2021 and had a total of 240,000 outstanding 2018/22 call options for repurchased shares. For the third quarter of 2021 and the reporting period's first nine months of 2021, the average share price exceeded the redemption price of SEK 137.30 per call option in the 2018 share based incentive programme, which entailed a dilution effect of approximately 0.15 percent and 0.1 percent for the quarter and the reporting period, respectively, as of 30 September 2021. The share price on 30 September 2021 was SEK 200.00. Refer also to page 8. PARENT COMPANY IN SUMMARY
INCOME STATEMENT MSEK	QUARTER JUL-SEP 2021	JUL-SEP 2020	JAN-SEP 2021	REPORTING PERIOD JAN-SEP 2020	ROLLING 12 MON AS OF 30 SEP 2021		FINANCIAL YEAR 2020 (9 mon)
Revenue	5	8	17	22		24		22
Other operating income	0	0	4	2		4		2
Total operating income	5	8	21	24		28		24
Operating expenses	-13	-11	-36	-32		-46		–33
Operating profit/loss	-8	-3	-15	-8		-18		–9
Financial income and expenses	2	0	4	-1		2		–4
Profit/loss after financial items	-6	-3	-11	-9		-16		–13
Appropriations	–	–	–	–3		–		–
Profit/loss before taxes	-6	-3	-11	-12		-16		–13
Taxes	1	1	2	3		3		3
Net profit/loss	-5	-2	-9	-9		-13		–10
There are no items in the Parent Company recognised as other comprehensive income. Accordingly, total comprehensive income corresponds to net profit for the period. BALANCE SHEET
MSEK				30 SEP 2021	30 SEP 2020		31 DEC 2020
ASSETS
Intangible non-current assets				0	0		0
Tangible non-current assets				0	0		0
Financial non-current assets				3,877	3,971		3,907
Current receivables				276	214		176
Cash and cash equivalents				114	65		357
TOTAL ASSETS				4,267	4,250		4,440
EQUITY, PROVISIONS AND LIABILITIES
Restricted equity				102	102		102
Non-restricted equity				1,876	1,959		1,955

BALANCE SHEET

Other operating income	0	0	4	2		4	2
Operating expenses	-13	-11	-36	-32		-46	–33
Taxes	1	1	2	3		3	3
comprehensive income corresponds to net profit for the period. BALANCE SHEET
ASSETS
Intangible non-current assets				0	0	0
Tangible non-current assets				0	0	0
Financial non-current assets			3,877		3,971	3,907
Current receivables			276		214	176
Cash and cash equivalents			114		65	357
TOTAL ASSETS			4,267		4,250	4,440
EQUITY, PROVISIONS AND LIABILITIES
Restricted equity			102		102	102
Non-restricted equity			1,876		1,959	1,955
Total equity			1,978		2,061	2,057
Untaxed reserves				–	–	–
Provisions				–	–	–
			1,483		1,614	1,544
Non-current liabilities					575	839
Current liabilities			806
TOTAL EQUITY, PROVISIONS AND LIABILITIES			4,267		4,250	4,440

NOTES

NOTE 1 ACCOUNTING POLICIES

The Interim Report for the Group 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. In addition to the financial statements and associated notes, disclosures in accordance with IAS 34.16A are also presented in other sections of the report. 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

NOTE 2 OPERATING SEGMENTS AND INFORMATION ON INCOME

Accounting for Legal Entities. The same accounting policies and bases of judgement as in Momentum Group's Annual Report for 2020 have been applied.

IASB has issued additions and amendments to standards that will take effect for the Group on or after 1 January 2021. These additions and amendments are deemed not to be material for the consolidated financial statement.

presented in other sections of the report. 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			consolidated financial statement.		take effect for the Group on or after 1 January 2021. These additions and amendments are deemed not to be material for the
NOTE 2 OPERATING SEGMENTS AND INFORMATION ON INCOME
The Group's operating segments comprise the business areas Alligo (formerly Tools, Consumables, Workwear & Protective Equipment) and Components & Services. The operating segments are consolidations of the operational organisation, as used by Group management and the Board of Directors to monitor operations. Group management, comprising the CEO and CFO, are the Group's chief operating decision makers. Alligo comprises Swedol and TOOLS with Univern and Grolls,				communications, investor relations and legal affairs. segment but recognised in their entirety in Group-wide.	Group-wide includes the Group's management, finance function and support functions. The support functions include internal Financial items and taxes are not distributed by operating Intra-Group pricing between the operating segments occurs on market terms. The accounting policies are the same as those applied in the consolidated financial statements. The revenue
and Gigant, Mercus Yrkeskläder, TriffiQ Företagsprofilering, Reklamproffsen Skandinavien and Company Line, which offer products and services related to tools, consumables, workwear, personal protective equipment, workplace equipment as well as promotional products for the industrial, construction and public sectors in the private market in the Nordic region, among others.				based on the geographic domicile of each legal entity).	presented below for the geographic markets is based on the domicile of the customers (compared with the information presented by geographic market for Alligo on page 5, which is
Components & Services comprises Momentum Industrial, Öbergs i Karlstad, ETAB Industriautomation, Rörick Elektriska Verkstad, Mekano, Mekano i Sävedalen, Carl A Nilssons Elektriska Reparationsverkstad and JNF Køge, which offer spare parts, services and repairs to customers in the industrial sector in the Nordic region.
		Components &	JAN-SEP 2021 (9 MON)
MSEK	Alligo	Services	Group-wide	Eliminations	Group total
From external customers by geographic area
Sweden	3,414	1,009	–	–	4,423
Norway	1,581	20	–	–	1,601
Finland	895	2	–	–	897
Other countries	123	50	–	–	173
From other segments	15	8	17	-40	–
Revenue	6,028	1,089	17	-40	7,094
EBITA	406	144	-11	0	539
Items affecting comparability	-110	0	-5	–	-115
Amortisation of intangible assets incurred in
connection with corporate acquisitions	-47	-7	–	–	-54
Operating profit	249	137	-16	0	370
MSEK	Alligo	Components & Services	JAN-SEP 2020 (9 MON) Group-wide	Eliminations	Group total
From external customers by geographic area
Sweden	2,626	800	–	–	3,426
Norway	1,441	17	–	–	1,458
Finland	826	1	–	–	827
Other countries	105	40	–	–	145
From other segments	18	9	21	-48	–
Revenue	5,016	867	21	-48	5,856
EBITA	264	116	-6	0	374
Items affecting comparability	-99	–	-7	–	-106
Amortisation of intangible assets incurred in connection with corporate acquisitions	-37	-3	–	–	-40
Operating profit	128	113	-13	0	228

From external customers by geographic area
Amortisation of intangible assets incurred in
			JAN-SEP 2020 (9 MON)
From external customers by geographic area
Norway	1,441	17	–	–	1,458
Finland	826	1	–	–	827
Other countries	105	40	–	–	145
From other segments	18	9	21	-48	–
Revenue	5,016	867	21	-48	5,856
			-6	0	374
EBITA	264	116
Items affecting comparability	-99	–	-7	–	-106
Amortisation of intangible assets incurred in
connection with corporate acquisitions	-37	-3	–	–	-40

Revenue by operating segment and quarter

							INTERIM REPORT – 9 MONTHS
							1 JANUARY-30 SEPTEMBER 2021
Revenue by operating segment and quarter MSEK	Q4	2021 Q3	Q2	Q1	Q3	2020 (9 mon) Q2	Q1
Alligo		1,874	2,172	1,982	2,242	1,781	2,012
Components & Services		343	396	350	296	256	285
Group-wide		5	6	6	8	7	7
Eliminations		-13	–14	–13	–17	–15	–16
Momentum Group		2,209	2,560	2,325	2,529	2,029	2,288
EBITA by operating segment and quarter		2021				2020 (9 mon)
MSEK	Q4	Q3	Q2	Q1	Q3	Q2	Q1
Alligo		154	167	85	164	94	122
Components & Services		51	50	43	40	37	34
Group-wide		-5	–3	–3	–3	–3	–1

EBITA by operating segment and quarter

							INTERIM REPORT – 9 MONTHS
							1 JANUARY-30 SEPTEMBER 2021
Revenue by operating segment and quarter
Eliminations		-13	–14	–13	–17	–15	–16
Momentum Group		2,209	2,560	2,325	2,529	2,029	2,288
EBITA by operating segment and quarter
		2021				2020 (9 mon)
MSEK	Q4	Q3	Q2	Q1	Q3	Q2	Q1
Alligo		154	167	85	164	94	122
Components & Services		51	50	43	40	37	34
Group-wide		-5	–3	–3	–3	–3	–1
		0	0	0	0	0	0
Eliminations

NOTE 3 FINANCIAL INSTRUMENTS

EBITA by operating segment and quarter
shortened to nine months and covers the 1 April to 31 December 2020 period. NOTE 3 FINANCIAL INSTRUMENTS Momentum Group measures financial instruments at fair value or amortised cost in the balance sheet depending on their classification. In addition to items in the financial net debt, financial instruments also include accounts receivable and accounts payable. The carrying amount of all of the Group's financial assets				Liabilities measured at fair value comprise hedging instruments for which the fair value is based on observable market data and are therefore included in level 2 according to IFRS 13 and contingent purchase considerations that are measured using discounted cash flow and are thus included in level 3.
is deemed to be a reasonable approximation of their fair value. MSEK			30 SEP 2021	30 SEP 2020		31 DEC 2020
Financial assets measured at fair value Financial investments Derivative hedging instruments			1 4		0 1	1 0
Financial assets measured at amortised cost Long-term receivables Accounts receivable Cash and cash equivalents			0 1,315 145	1,187	1 88	0 1,141 375
Total financial assets			1,465	1,277		1,517
Financial liabilities measured at fair value Derivative hedging instruments Conditional purchase considerations			0 14		6 –	14 –
Financial liabilities measured at amortised cost
Option liability Interest-bearing liabilities			28 2,638	2,746	17	17 2,672
Accounts payable			1,021	966		1,022
Total financial liabilities			3,701	3,735		3,725

NOTE 4 ACQUISITIONS

Financial liabilities measured at fair value
MSEK ACQUIRED ASSETS	FAIR VALUE RECOGNISED	IN THE GROUP
Right-of-use assets		77
Other non-current assets		6
Inventories		33
Other current assets		72
Total assets		239
ACQUIRED PROVISIONS AND LIABILITIES
Lease liabilities		77
Deferred tax liability		12
Other current liabilities		42
Total provisions and liabilities		131
NET OF IDENTIFIED ASSETS AND LIABILITIES		108
Goodwill		74
Non-controlling interests1		–10
PURCHASE CONSIDERATION		172
: Net cash in acquired business2 Less / additional		–31
Less : Additional purchase consideration		–14
EFFECT ON THE GROUP'S CASH AND CASH EQUIVALENTS		127
1 Non-controlling interests are calculated as the proportional share of the identified net assets. 2 Net of cash and cash equivalents and interest-bearing liabilities in the acquired businesses.

				INTERIM REPORT – 9 MONTHS
Corporate acquisitions carried out since the 2015/16 financial year:				1 JANUARY-30 SEPTEMBER 2021
ACQUISITION	TIME (possessiton taken)	REVENUE1	NO OF EMPLOYEES1	BUSINESS AREA
AB Carl A. Nilssons El. Rep.verkstad, SE	September 2015	MSEK 20	13	Components & Services
Tønsberg Maskinforretning AS, NO	April 2016	MNOK 20	10	Alligo
Astrup Industrivarer AS, NO
Arboga Machine Tool AB, SE	November 2016	MNOK 240	50	Alligo
TriffiQ Företagsprofilering AB2	March 2017	MSEK 10	5	Components & Services
, SE AB Knut Sehlins Industrivaruhus, SE	September 2017	MSEK 70	18	Alligo
Elka Produkter AB2	October 2017 October 2017	MSEK 40 3	14 10	Alligo Alligo
, SE Reklamproffsen Skandinavien AB2		–
, SE	March 2018	MSEK 35	12	Alligo
Profilmakarna i Södertälje AB, SE	April 2018	MSEK 25	8	Alligo
MRO business from Brammer4 , SE	May 2018	MSEK 140	33	Components & Services
MFG Components Oy4 , FI	October 2018	MEUR 1	3	Alligo
TOOLS Løvold AS, NO	January 2019	MNOK 95	28	Alligo
PPE business from Lindström Group4 , FI	April 2019	MEUR 6	5	Alligo
ETAB Industriautomation AB2 , SE	June 2019	MSEK 45	9	Components & Services
Company Line Förvaltning AB2 , SE	June 2019	MSEK 75	25	Alligo
AMJ Papper AB, SE	March 2020	MSEK 15	6	Alligo
Swedol AB5 , SE / NO / FI	April 2020	MSEK 3,650	1,046	Alligo
Spindle service business from SKF4 , SE	November 2020	MSEK 10	5	Components & Services
Mekano AB2 & Mekano i Sävedalen AB, SE	February 2021	MSEK 145	85	Components & Services
Öbergs i Karlstad AB, SE	February 2021	MSEK 50	12	Components & Services
Service workshops from Assemblin El4 , SE	April 2021	MSEK 90	45	Components & Services
Imatran Pultti Oy, FI	April 2021	MEUR 5	11	Alligo
		MSEK 25	8	Components & Services
After the end of the period
Intertechna AB RAF Romerike Arbeidstøy AS, NO	October 2021 October 2021	MNOK 16	4	Alligo

5 After the completion of the public offer to the shareholders in Swedol AB, Momentum Group's holding amounted to approximately 99 percent of the shares. Compulsory redemption of the remaining shares in Swedol has been called for, and preferential rights to the shares was granted by the arbitration board in the dispute resolution proceeding in early July 2020. Momentum Group subsequently holds 100 percent of the shares and votes in Swedol.

PERFORMANCE MEASURES – DEFINITIONS & CALCULATIONS

performance measures in the same way, there is no guarantee that the information is comparable with other companies' performance measures of the same name. Hence, these financial performance measures must not be viewed as a replacement for those measures calculated in accordance with IFRS. Insofar as the performance measures are used and commented on by business area (operating segment), the derivation of the performance measures is also presented at this level. 31 MAR 2020 31 MAR 2019

				INTERIM REPORT – 9 MONTHS
				1 JANUARY-30 SEPTEMBER 2021
PERFORMANCE MEASURES – DEFINITIONS & CALCULATIONS
Momentum Group uses certain financial performance measures in its analysis of the operations and their performance that are not defined in accordance with IFRS. Momentum Group believes that these alternative performance measures provide valuable information for the company's Board of Directors, owners and investors, since they enable a more accurate assessment of current trends and the company's performance when combined with other performance measures calculated in accordance with IFRS. Since not all listed companies calculate these financial		performance measures in the same way, there is no guarantee that the information is comparable with other companies' performance measures of the same name. Hence, these financial performance measures must not be viewed as a replacement for those measures calculated in accordance with IFRS. Insofar as the performance measures are used and commented on by business area (operating segment), the derivation of the performance measures is also presented at this level.
		12 MONTHS ENDING
	30 SEP 2021	31 DEC 20201	31 MAR 2020	31 MAR 2019
IFRS PERFORMANCE MEASURES
Net profit, MSEK Earnings per share, SEK	394 7.85	283 6.50	217 7.70	231 8.20
ALTERNATIVE PERFORMANCE MEASURES
Performance measures related to the income statement Revenue, MSEK	9,623	8,385	6,135	6,024
Operating profit, MSEK	555	413	303	302
of which: Items affecting comparability	-115	–106	–14	–
of which: Amortisation of intangible assets incurred
in connection with corporate acquisitions EBITA, MSEK	-70 740	–56 575	–21 338	–16 318
of which: Depreciation and amortisaton of tangible
2 and other intangible non-current assets Profit after financial items, MSEK	-123 502	–86 368	–31 283	–31 296
Operating margin, %	5.8%	4.9%	4.9%	5.0%
EBITA margin, %	7.7%	6.9%	5.5%	5.3%
Profit margin, %	5.2%	4.4%	4.6%	4.9%
Performance measures related to profitability Return on working capital (EBITA/WC), %	37%	32%	28%	27%
Return on capital employed, %	10%	10%	14%	19%
Return on equity, %	13%	12%	16%	19%
Performance measures related to financial position
Financial net loan liability (closing balance), MSEK Operational net loan liability (closing balance), MSEK	2,526 1,462	2,331 1,293	708 166	293 266
Equity (closing balance)3 , MSEK	3,257	3,037	2,869	1,303
Equity/assets ratio, %	40%	39%	48%	45%
				1,684
Other performance measures
Number of employees at the end of the period	2,810	2,670	1,651

DEFINITIONS OF PERFORMANCE MEASURES

Revenue

Own invoicing, commission-based revenue from commission sales and side revenue.

Used to present the Group's sales to external customers. Revenue from both external and internal customers is recognised per business area (operating segment).

Operating profit

Profit before financial items and tax.

Used to present the Group's earnings before interest and tax.

Items affecting comparability

Items affecting comparability include revenue and expenses that do not arise regularly in the operating activities.

EBITA

Operating profit adjusted for items affecting comparability and before any impairment of goodwill and amortisation and impairment of other intangible assets arising in connection with corporate acquisitions and equivalent transactions. Used to present the Group's earnings generated from operating activities.

Operating margin, %

Operating profit relative to revenue.

Used to measure the Group's earnings generated before interest and tax and provides an understanding of the earnings performance over time. Specifies the percentage of revenue remaining to cover interest payments and tax and to provide profit after the Group's expenses have been paid.

EBITA margin, %

EBITA as a percentage of revenue.

Used to measure the Group's earnings generated from operating activities and provides an understanding of the earnings performance over time. The EBITA margin based on revenue from both external and internal customers is presented per business area (operating segment).

Profit margin, %

Profit after financial items as a percentage of revenue.

Used to assess the Group's earnings generated before tax and presents the share of revenue that the Group may retain in earnings before tax.

Return on working capital (EBITA/WC), %

EBITA for the most recent 12-month period divided by average working capital measured as total working capital (accounts receivable and inventories less accounts payable) at the end of each month for the most recent 12-month period and the opening balance at the start of the period divided by 13.

The Group's internal profitability target, which encourages high EBITA and low tied-up capital. Used to analyse profitability in the Group and its various operations.

Return on capital employed, %

Operating profit plus financial income for the most recent 12-month period divided by average capital employed measured as the balance-sheet total less non-interest-bearing liabilities and provisions at the end of the most recent four quarters and the opening balance at the start of the period divided by five.

Presented to show the Group's return on its externally financed capital and equity, meaning independent of its financing.

Return on equity, %

Net profit for the most recent 12-month period divided by average equity measured as total equity attributable to Parent Company shareholders at the end of the most recent four quarters and the opening balance at the start of the period divided by five.

Used to measure the return generated on the capital invested by the shareholders.

Financial net loan liability (closing balance)

Financial net loan liability measured as non-current interest-bearing liabilities and current interest-bearing liabilities, less cash and cash equivalents at the end of the period.

Used to monitor the debt trend and analyse the Group's total indebtedness including lease liabilities.

Operational net loan liability (closing balance)

Equity/assets ratio, %

Earnings per share, SEK

Change in revenue for comparable units

DERIVATION OF ALTERNATIVE PERFORMANCE MEASURES

excluding lease liabilities and net provisions for pensions, less cash and cash equivalents at the end of the period.	Operational net loan liability measured as non-current interest-bearing liabilities and current interest-bearing liabilities,
Used to monitor the debt trend and analyse the Group's total indebtedness excluding lease liabilities and net provisions for pensions.
Equity/assets ratio, % Equity attributable to Parent Company shareholders as a percentage of the balance-sheet total at the end of the period.
Used to analyse the financial risk in the Group and show how much of the Group's assets are financed by equity.
Earnings per share, SEK Net profit attributable to the Parent Company shareholders divided by the weighted number of shares.
IFRS performance measure.
difference in the number of trading days compared with the comparative period. Other units refer to the acquisition or
MSEK		12 MONTHS ENDING
divestment of units during the corresponding period. NOTE: Any instances where comparable units include Swedol for periods prior to the closing date of 1 April 2020 are specifically noted. Used to analyse the underlying sales growth driven by changes in volume, the product and service offering, and the price for similar products and services across different periods. Refer to the reconciliation table on page 4. DERIVATION OF ALTERNATIVE PERFORMANCE MEASURES	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
EBITA Operating profit	555	413	303	302
Items affecting comparability
Restructuring expenses	108	97	–	–
Acquisition related expenses	–	7	14	–
Integration expenses for the acquisition of Swedol	–	2	–	–
Split and listing expenses	7	–	–	–
Amortisation of intangible assets incurred in connection with corporate acquisitions	70	56	21	16

			INTERIM REPORT – 9 MONTHS
			1 JANUARY-30 SEPTEMBER 2021
		12 MONTHS ENDING
MSEK	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
WORKING CAPITAL Average operating assets
Average inventories Average accounts receivable	1,858 1,213	1,602 1,076	1,021 966	975 956
Total average operating assets	3,071	2,678	1,987	1,931
Average operating liabilities Average accounts payable	-1,057	–886	–759	–736
Total average operating liabilities	-1,057	–886	–759	–736
Average working capital EBITA	2,014 740	1,792 575	1,228 338	1,195 318
Return on working capital (EBITA/WC), %	37%	32%	28%	27%
		12 MONTHS ENDING
MSEK	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
CAPITAL EMPLOYED Average balance-sheet total	7,989	5,952	3,318	2,813
Average non-interest-bearing liabilities and provisions Average non-interest-bearing non-current liabilities	-393	–244	–72	–74
Average non-interest-bearing current liabilities	-1,737	–1,407	–1,147	–1,150
Total average non-interest-bearing liabilities and provisions	-2,130	–1,651	–1,219	–1,224
Average capital employed Operating profit	5,859 555	4,301 413	2,099 303	1,589 302
Financial income	2	4	1	1
Total operating profit + financial income Return on capital employed, %	557 10%	417 10%	304 14%	303 19%
		12 MONTHS ENDING
MSEK	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
RETURN ON EQUITY Average equity Net profit	3,118 394	2,326 282	1,333 214	1,220 229
Return on equity, %	13%	12%	16%	19%
		12 MONTHS ENDING
MSEK	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
FINANCIAL NET LOAN LIABILITY (CLOSING BALANCE) Non-current interest-bearing liabilities	2,186	2,219	1,461	164
Current interest-bearing liabilities Cash and cash equivalents	485 -145	487 –375	404 –1,157	137 –8
Financial net loan liability (closing balance)	2,526	2,331	708	293
		12 MONTHS ENDING
MSEK	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
OPERATIONAL NET LOAN LIABILITY (CLOSING BALANCE) Financial net loan liability	2,526	2,331	708	293
Financial lease liabilities Net provisions for pensions	-1,031 -33	–1,004 –34	–511 –31	– –27
Operational net loan liability (closing balance)	1,462	1,293	166	266
		12 MONTHS ENDING
MSEK EQUITY/ASSETS RATIO	30 SEP 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
Balance-sheet total (closing balance)	8,139	7,812	5,940	2,914
	3,257	3,037 39%	2,869	1,303
Equity (closing balance)** Equity/assets ratio, %	40%		48%	45%