Alligo

Quarterly Report • Jul 16, 2021

INTERIM REPORT – 6 MONTHS 1 January-30 June 2021

SECOND QUARTER (1 April-30 June 2021)

• Revenue increased by 12 percent to MSEK 2,560 (2,288).
• EBITA increased by 38 percent to MSEK 214 (155), corresponding to an EBITA margin of 8.4 percent (6.8).
• Operating profit amounted to MSEK 194 (134) and the operating margin to 7.6 percent (5.9).
• Net profit for the quarter increased by 54 percent to MSEK 145 (94) and earnings per share to SEK 2.85 (1.85).
• Demand and the earnings trend in both of the Group's business areas continued to recover during the quarter compared both with the preceding quarter and with the preceding year, which was characterised by uncertainty and the measures taken by companies and societies at large in the wake of the COVID-19 pandemic.
• The integration between Swedol and TOOLS continues according to plan and with an undiminished focus within the Group's business area Alligo.
• A new organisational structure was established in the business area Components & Services during the quarter in order to support the continued operational and acquisition driven focus.
• In the beginning of April, the Board of Directors decided to assign Group management the task of investigating the conditions for splitting the Group into two separate listed companies. The aim is to create increased shareholder value through increased focus. The Board intends to present further information on the results of the investigation during the financial year.
• Momentum Group's Annual General Meeting was held on 11 May 2021 and the dividend was set at SEK 1.50 per share (–).

REPORTING PERIOD (1 January-30 June 2021)

• Revenue amounted to MSEK 4,885 (3,827), with the change from 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 4,656), revenue increased by 5 percent.*

• EBITA amounted MSEK 339 (246), corresponding to an EBITA margin of 6.9 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 289), EBITA increased by 17 percent and the EBITA margin amounted to 6.9 percent (6.2).*
• Net profit for the period amounted to MSEK 222 (148) and earnings per share totalled SEK 4.40 (3.80).
• The return on working capital (EBITA/WC) for the most recent 12-month period (including Swedol) was 33 percent.*
• The equity/assets ratio was 39 percent at the end of the period.
• Cash flow from operating activities amounted to MSEK 486 (482).
• 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.

* 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)

PRESIDENT'S STATEMENT

POSITIVE PERFORMANCE CONTINUES FOR THE GROUP'S OPERATIONS

Most of the Group's operations delivered a positive sales and earnings performance during the second quarter after a more hesitant start to the financial year. EBITA for the entire Group increased by 38 percent during the quarter. Many of the Group's customers have also indicated that they are optimistic about the outlook for the rest of the year, which hopefully indicates continued increases in volumes going forward. At the same time, the efficiency measures we have taken, and are continuing to take as needed, have a positive contribution to our earnings performance and we are continuing to generate strong cash flows. This provides us with favourable conditions for continued profitable growth.

The integration between TOOLS and Swedol in the business area Alligo continues with an undiminished focus, with the aim of achieving our goals in terms of synergies and economies of scale over time. The establishment of a joint product range with new purchasing agreements and the introduction of proprietary product brands in additional businesses within the business area, along with the coordination of stores, are proceeding according to plan.

In the business area Components & Services, we are continuing our efforts to achieve acquisitiondriven growth (while maintaining profitability) and the four acquisitions we completed during the first quarter are now integrated in the business area and contribute to sales and earnings performance. We are already seeing interesting collaboration opportunities between these newly acquired companies and our existing operations. During the quarter, a new organisational structure was implemented to strengthen our focus on growth, both organic and through acquisitions.

PRIORITIES FOR THE FUTURE

Despite the positive signals from our customers and suppliers, uncertainty continues in our operating environment and in the Group's markets. We are seeing this in the form of the effect on demand, prices and supply chains. There is currently a surplus demand for certain product areas which, in combination with a shortage of materials and disruptions to the global logistics chain, leads to a significant increase in prices within a number of areas and for raw materials and transportation. Our decentralised profit responsibility, proximity to customers and ability to quickly adapt to changes in our operating environment remain the key to our success.

The Group's priorities for the coming quarter include securing our own ability to deliver products to our customers through proactive procurement and analyses. We continue to take appropriate measures in our operations, focus on the coordination project and realising synergies within the business area Alligo and to increase sales to new and existing customers in our daily work. In the business area Components & Services, we are also focusing on establishing contacts with and visiting potential acquisition candidates.

In addition to these priorities, as previously announced, the Board has assigned Group management the task of investigating the possibility of splitting the Group into two separate listed companies. The purpose is to strengthen each business area's conditions for achieving its ambitions in the best possible way and thereby creating increased shareholder value. The Board intends to present further information on the results of the investigation during the financial year.

Stockholm, July 2021

Ulf Lilius President & CEO

MOMENTUM GROUP IN SUMMARY

	3 MONTHS ENDING			6 MONTHS ENDING			12 MONTHS ENDING
	30 JUN 2021	30 JUN 2020	Δ	30 JUN 2021	30 JUN 2020	Δ	30 JUN 2021	30 JUN 2020	Δ
Revenue, MSEK	2,560	2,288	12%	4,885	3,827	28%	9,443	6,847	38%
Revenue including Swedol 2019/20 1	2,560	2,288	12%	4,885	4,656	5%	9,443	9,569	–1%
Operating profit, MSEK	194	134	45%	302	214	41%	501	367	37%
of which: Items affecting comparability	–2	–4		–2	–9		–99	–18
of which: Amortisation of intangible assets incurred in connection with corporate acquisitions	–18	–17		–35	–23		–68	–33
EBITA, MSEK	214	155	38%	339	246	38%	668	418	60%
EBITA including Swedol 2019/20 1	214	155	38%	339	289	17%	668	668	0%
Profit after financial items, MSEK	182	120	52%	280	194	44%	454	337	35%
Net profit (after taxes), MSEK	145	94	54%	222	148	50%	357	260	37%
Earnings per share, SEK	2.85	1.85	54%	4.40	3.80	16%	7.10	7.75	–8%
Operating margin	7.6%	5.9%		6.2%	5.6%		5.3%	5.4%
EBITA margin	8.4%	6.8%		6.9%	6.4%		7.1%	6.1%
EBITA margin including Swedol 2019/20 1	8.4%	6.8%		6.9%	6.2%		7.1%	7.0%
Profit margin	7.1%	5.2%		5.7%	5.1%		4.8%	4.9%
Return on equity							12%	15%
Return on working capital (EBITA/WC)							33%	29%
EBITA/WC including Swedol 2019/20 1							33%	29%
Equity per share, SEK							63.50	58.20	9%
Equity/assets ratio				39%	38%		39%	38%
Number of employees at the end of the period				2,779	2,370	17%	2,779	2,370	17%

1) Calculated as though the acquisition of Swedol had closed on 1 April 2019.

REVENUE AND PROFIT

SECOND QUARTER (1 April-30 June 2021)

Revenue increased by 12 percent to MSEK 2,560 (2,288). 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 +22 on revenue for comparable units. The quarter included one more trading day than the corresponding quarter in the preceding year.

Operating profit increased by 45 percent to MSEK 194 (134). EBITA (operating profit excluding items affecting comparability and amortisation of intangible assets incurred in connection with corporate acquisitions) increased by 38 percent to MSEK 214 (155), equivalent to an EBITA margin of 8.4 percent (6.8). Exchange-rate translation effects had a net impact of MSEK +1 (0) on operating profit.

Profit after financial items totalled MSEK 182 (120) and net profit amounted to MSEK 145 (94), which corresponds to earnings per share of SEK 2.85 (1.85) for the quarter.

REPORTING PERIOD (1 January-30 June 2021)

Revenue amounted to MSEK 4,885 (3,827), 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 4,656), revenue increased by 5 percent. Revenue for comparable units (including Swedol), measured in local currency and adjusted for the number of trading days, increased by more than 3 percent compared with the corresponding period in the preceding year. Exchange-rate translation effects had an impact of MSEK –23 on revenue for comparable units (including Swedol). The reporting period contained the same number of trading days as the corresponding period in the preceding financial year.

Operating profit amounted to MSEK 302 (214), 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 339 (246). Compared with EBITA for the corresponding period in the preceding year including Swedol for the entire reporting period (MSEK 289), EBITA increased by 17 percent, with an increase in the EBITA margin to 6.9 percent (6.2). Operating profit was charged with depreciation of MSEK –31 (–18) on tangible non-current assets and amortisation of MSEK –56 (–36) on intangible non-current assets. Exchange-rate translation effects had a net impact of MSEK 0 (–1) on operating profit.

Profit after financial items totalled MSEK 280 (194) and net profit amounted to MSEK 222 (148), which corresponds to earnings per share of SEK 4.40 (3.80) for the reporting period.

* 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

The Momentum Group comprises two business areas – Alligo and Components & Services. Group-wide includes the Group's management, finance function and support functions (including internal communications, investor relations and legal affairs).

MARKET AND THE IMPACT OF THE COVID-19 PANDEMIC

Overall demand continued to recover during the second quarter of 2021 compared with the 2020 financial year, which was characterised by the uncertainty and the stringent measures taken by companies and societies at large due to the COVID-19 pandemic. The largest changes in demand during the quarter were attributable to large, export-oriented customers in the industrial sector, which were widely impacted by developments in the global markets. Demand from small and medium-sized customers remained stable. Performances also continued to vary between countries. A shortage of materials and resources in some of the Group's product areas as well as transportation disruptions have had a certain dampening effect on sales. Accordingly, it is not currently possible to predict with any certainty how the pandemic and other market conditions will affect Momentum Group in the coming quarters of 2021. The current situation has not led to any changes in material bases of judgement compared with those applied in the Annual Report for 2020.

Sales performance

	QUARTER	REPORTING PERIOD
	APR-JUN 20211	JAN-JUN 20211
Change in revenue for:
Comparable units in local currency	6.2%	3.4%
Currency effects	1.0%	–0.5%
Number of trading days	2.3%	–0.2%
Other units2	2.4%	2.2%
Total change	11.9%	4.9%

1) Swedol is included in "Comparable units" as though the acquisition had closed on 1 April 2019.

2) Other acquisitions in 2020-2021 (excluding Swedol).

BUSINESS AREA ALLIGO

The business area comprises Swedol and TOOLS with Univern and Grolls, and Gigant, 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:

The sales trend in Alligo was positive during the second quarter and we noted a certain degree of recovery. Overall, sales increased by approximately 4 percent, adjusted for the number of trading days and in local currency. However, the sales performance in the industrial segment remained challenging, and we are implementing numerous purposeful initiatives as part of our targeted, long-term efforts to reverse this trend.

During the quarter, we have launched and established our new values throughout the business area. We also continued work to define our strategic goals, which will be determined in early autumn. We will thus have a joint mission, vision, values and clear strategic goals in place to conduct operations more efficiently in the future.

Other aspects of the integration have proceeded according to plan. Work to develop a joint Nordic product range is finalised and the launch will begin in the autumn. To date, we have carried out 11 store integrations in Sweden and four in Norway. After integrating TOOLS in Finland into our joint IT platform during the first quarter, we have gone further and started an analysis to identify the preconditions for integrating TOOLS in Sweden and Norway, and to simplify the legal structure.

In the second quarter, we have carried out ISO 9001, 14001 and 45001 audits in Sweden and Norway with positive results.

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			6 MONTHS ENDING	12 MONTHS ENDING
	30 JUN 2021	30 JUN 2020	30 JUN 2021	30 JUN 2020	30 JUN 2021	30 JUN 2020
REVENUE, MSEK
Sweden	1,349	1,267	2,556	2,420	5,029	4,856
Norway	547	482	1,094	1,088	2,159	2,363
Finland	339	315	625	641	1,225	1,284
Other countries	9	7	15	13	33	29
Eliminations	–72	–59	–136	–98	–269	–146
Total BA	2,172	2,012	4,154	4,064	8,177	8,386
EBITA, MSEK
Sweden	131	94	204	154	400	372
Norway	18	5	29	22	69	75
Finland	18	23	19	38	40	72
Other countries	0	0	0	–1	1	–1
Total BA	167	122	252	213	510	518
EBITA MARGIN, %
Sweden	9.7%	7.4%	8.0%	6.4%	8.0%	7.7%
Norway	3.3%	1.0%	2.7%	2.0%	3.2%	3.2%
Finland	5.3%	7.3%	3.0%	5.9%	3.3%	5.6%
Other countries	0.0%	0.0%	0.0%	–7.7%	3.0%	–3.4%
Total BA	7.7%	6.1%	6.1%	5.2%	6.2%	6.2%
OTHER INFORMATION
Return on working capital (EBITA/WC), %					29%	26%

Demand in the business area Alligo was stable during the second quarter of the financial year, and revenue for comparable units in the business area increased by a total of 4 percent¹ during the quarter, with the comparative period characterised by a great deal of uncertainty and more or less stringent measures taken by companies and societies at large due to the COVID-19 pandemic. The different countries in the business area therefore demonstrate certain variations in sales and earnings trends for comparable units during the quarter. While the integration, which includes the coordination of stores and new joint purchasing agreements, has had a positive impact during the quarter, other activities and measures are continuously being carried out to increase sales and margins and improve efficiency.

Revenue for the operations in Sweden increased by a total of approximately 3 percent² during the quarter compared with the previous year. Sales to small and medium-sized customers continued to perform particularly well. Several activities and measures are continuously being carried out to increase sales to larger industrial companies. The earnings trend was relatively strong during the quarter, and the integration had a positive impact in the form of synergies and cost-saving measures. The comparison with the corresponding quarter in the preceding year for the specialist companies in Workwear & Profile Materials is affected by a number of one-time transactions, primarily within personal protective equipment in 2020.

Revenue for the operations in Norway increased by approximately 4 percent² during the quarter. The pandemic and the stringent measures that companies and society at large took in 2020 have had a major impact on demand in the Norwegian market, not least in the oil & gas sector. This has had a negative impact on sales to both retail and direct sales customers, but there was a slight recovery in the operations' sales and earnings during the quarter. Store integrations and cost-saving measures continue to be implemented, including in the logistics functions.

Revenue for the operations in Finland increased by approximately 10 percent² during the quarter. Demand in the relatively export-dependent Finnish industrial sector, including the pulp & paper and shipbuilding industries, recovered somewhat during the quarter. The operations are continuously implementing customised cost-saving measures with the aim of reversing the negative earnings trend.

¹ Comparable units (including Swedol), measured in local currency and adjusted for the number of trading days this year compared with the preceding year.

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 and JNF Køge, which offer 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 second quarter, and many of our customers have indicated that they are optimistic about the outlook for the rest of the year. This hopefully indicates an increase in volumes going forward, even if uncertainties in our operating environment and concerns over a new outbreak of the pandemic and its impact on demand, supply chains and price increases remain high. There is currently already a shortage of materials and resources in certain customer segments and industries, and we are seeing significant increases in prices within a number of areas and for raw materials and transportation. We are therefore working continuously to maintain our healthy delivery ability and high level of service for existing and new customers. Measures taken to increase efficiency, price adjustments and a favourable product mix contributed to a continued stable earnings performance, favourable profitability and strong cash flows.

The businesses that we acquired during the first quarter – Öbergs i Karlstad, Mekano, Mekano i Sävedalen and the three electromechanical service workshops we acquired from Assemblin El, which are now part of Rörick El. Verkstad – all contributed to our positive performance during the quarter and are further strengthening our market-leading position as a supplier of industrial components and industrial services to Nordic industry. We are already seeing interesting collaboration opportunities between these newly acquired companies and our existing operations in terms of customers as well as suppliers. We are also continuing to evaluate attractive acquisition opportunities that would further strengthen our market position and profitability. During the quarter, we implemented a new organisational structure to strengthen the business area's focus on growth, both organic and through acquisitions.

	3 MONTHS ENDING			6 MONTHS ENDING	12 MONTHS ENDING
	30 JUN 30 JUN		30 JUN	30 JUN	30 JUN	30 JUN
REVENUE, MSEK	2021	2020	2021	2020	2021	2020
Total BA	396	285	746	611	1,298	1,229
EBITA, MSEK
Total BA	50	34	93	79	170	155
EBITA MARGIN, %
Total BA	12.6%	11.9%	12.5%	12.9%	13.1%	12.6%
OTHER INFORMATION
Return on working capital (EBITA/WC), %					67%	60%

The sales and earnings performance in the business area Components & Services was positive during the second quarter of the financial year. Revenue for comparable units in the business area increased by approximately 19 percent² during the quarter, with the comparative period characterised by a great deal of uncertainty and stringent measures taken by companies and society at large due to the COVID-19 pandemic. Businesses acquired during the first quarter contributed approximately MSEK 70 in revenue. Demand in all product areas in Momentum Industrial was strong during the quarter, primarily from customers in the automotive 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, performed 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 –6 (–3) for the reporting period and items affecting comparability to MSEK –2 (–7) pertaining to costs for advisors in connection with the investigation of the prerequisites for a potential split of the Group. Items affecting comparability in the previous year pertained to the acquisition of Swedol. Accordingly, the operating loss amounted to MSEK –8 (–10). The Parent Company's revenue for the reporting period amounted to MSEK 12 (14) and the loss after financial items totalled MSEK –5 (–6). The results include no Group contributions (–).

EMPLOYEES

At the end of the reporting period, the number of employees in the Group amounted to 2,779, 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.

² Comparable units (including Swedol), measured in local currency and adjusted for the number of trading days this year compared with the preceding year.

CORPORATE ACQUISITIONS

To date, Momentum Group has conducted five 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.

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 12 percent (15) and the return on working capital (EBITA/WC) to 33 percent (29) for the most recent 12-month period. The return on capital employed for the corresponding period was 9 percent (13).

Cash flow from operating activities before changes in working capital for the reporting period totalled MSEK 488 (370). During the period, inventories increased by MSEK 96 and operating receivables by MSEK 124. Operating liabilities rose by MSEK 218. Accordingly, cash flow from operating activities for the period amounted to MSEK 486 (482).

Cash flow for the reporting period was also impacted in a net amount of MSEK –75 (–58) pertaining to investments in and divestments of non-current assets, and a net amount of MSEK –127 (–1,702) 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.

At the end of the reporting period, the Group's financial net loan liability amounted to MSEK 2,386, 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 1,290, compared with MSEK 1,293 at the beginning of the year. Cash and cash equivalents, including unutilised granted credit facilities, totalled MSEK 1,366. The equity/assets ratio at the end of the reporting period was 39 percent.

Equity per share totalled SEK 63.50 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 June 2021 was as follows:

CLASS OF SHARE	AS OF 30 JUNE 2021
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
Total number of shares after repurchasing	50,480,889

INTERIM REPORT – 6 MONTHS

1 JANUARY-30 JUNE 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 June 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 share³ . Each call option in this programme entitled 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 June 2021, there were 240,000 call options 2018/22 outstanding.

The share price on 30 June 2021 was SEK 174.60 and the call options outstanding on the shares repurchased by the Company according to the above resulted in a dilution effect of approximately 0.1 percent and 0.05 percent for the second 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 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 is deemed to have increased on account of the ongoing 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.

MOMENTUM GROUP'S ANNUAL GENERAL MEETING 2021

Momentum Group AB's Annual General Meeting was held in Stockholm, Sweden on Tuesday, 11 May 2021. Due to the COVID-19 pandemic, the Annual General Meeting was held without physical attendance by shareholders, proxies or outside parties and shareholders could only exercise their voting rights by post ahead of the Meeting in accordance with Section 22 of the Swedish Act (2020:198) on Temporary Exemptions to Facilitate the Execution of General Meetings in Companies and Associations. The Meeting resolved on a dividend of SEK 1.50 per share in accordance with the Board's proposal and authorised the Board to resolve on the repurchase of own shares and on new share issues up to 10 percent of all shares in the Company. These authorisations are valid until the next Annual General Meeting.

EVENTS AFTER THE END OF THE REPORTING PERIOD

No significant events affecting the Group have occurred since the end of the reporting period.

³ 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.

AFFIRMATION

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

Stockholm, 15 July 2021

Chairman Director Director

Johan Sjö Johan Eklund Stefan Hedelius

Director Director Director

Göran Näsholm Gunilla Spongh Christina Åqvist

Pernilla Andersson Ulf Lilius Director - Employee representative 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 Mats Karlqvist, Head of Investor Relations, Tel: +46 70 660 31 32

Dates for forthcoming financial information

Presentation of Interim Report (6 months) – A teleconference will be held today, Thursday, 15 July 2021 at 11:00 a.m. CEST. Refer to www.momentum.group for information about telephone numbers and link to the webcast.

Interim Report (9 months) – 1 January-30 September 2021 will be published on 29 October 2021. Financial Report 2021 – 1 January-31 December 2021 will be published on 18 February 2022.

Annual Report for the 2021 financial year will be published in early April 2022.

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

Momentum Group AB's 2022 Annual General Meeting will be held in Stockholm on 11 May 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 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 15 July 2021.

This document is in all respects a translation of the Swedish original Interim Report. In the event of any differences between this translation and the Swedish original, the latter shall prevail.

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

MSEK	QUARTER APR-JUN 2021	APR-JUN 2020	JAN-JUN 2021	REPORTING PERIOD JAN-JUN 2020	ROLLING 12 MON AS OF 30 JUN 2021	FINANCIAL YEAR 2020 (9 mon)
Revenue	2,560	2,288	4,885	3,827	9,443	6,846
Other operating income	1	4	13	5	24	15
Total operating income	2,561	2,292	4,898	3,832	9,467	6,861
Cost of goods sold	–1,496	–1,382	–2,866	–2,351	–5,661	–4,177
Personnel costs	–515	–426	–1,018	–722	–1,863	–1,271
Depreciation, amortisation, impairment losses and reversal of impairment losses	–137	–138	–272	–204	–593	–459
Other operating expenses	–219	–212	–440	–341	–849	–621
Total operating expenses	–2,367	–2,158	–4,596	–3,618	–8,966	–6,528
Operating profit	194	134	302	214	501	333
Financial income	1	2	2	3	4	3
Financial expenses	–13	–16	–24	–23	–50	–42
Net financial items	–12	–14	–22	–20	–47	–39
Profit after financial items	182	120	280	194	454	294
Taxes	–37	–26	–58	–46	–97	–65
Net profit	145	94	222	148	357	229
Of which, attributable to: Parent Company shareholders Non-controlling interest	145 0	92 2	222 0	146 2	358 –1	228 1
Earnings per share, SEK – before dilution – after dilution	2.85 2.85	1.85 1.85	4.40 4.40	3.80 3.80	7.10 7.10	4.55 4.55

STATEMENT OF COMPREHENSIVE INCOME

	QUARTER		REPORTING PERIOD		ROLLING 12 MON	FINANCIAL YEAR
MSEK	APR-JUN 2021	APR-JUN 2020	JAN-JUN 2021	JAN-JUN 2020	AS OF 30 JUN 2021	2020 (9 mon)
Net profit OTHER COMPREHENSIVE INCOME FOR THE PERIOD	145	94	222	148	357	229
Components that will not be reclassified to net profit
Remeasurement of defined-benefit pension plans Tax attributable to components that will	–2	–1	1	–1	0	–2
not be reclassified	1	0	0	0	0	0
	–1	–1	1	–1	0	–2
Components that will be reclassified to net profit
Translation differences	–22	–15	25	–37	3	–37
Fair value changes for the year in cash-flow hedges	1	–15	16	–12	4	–27
Tax attributable to components that will be reclassified	–1	3	–4	3	–1	6
	–22	–27	37	–46	6	–58
Other comprehensive income for the period	–23	–28	38	–47	6	–60
Total comprehensive income for the period	122	66	260	101	363	169
Of which, attributable to: Parent Company shareholders Non-controlling interest	122 0	64 2	260 0	99 2	364 –1	168 1

BALANCE SHEET

MSEK	30 JUN 2021	30 JUN 2020	31 DEC 2020
ASSETS
Non-current assets
Intangible non-current assets	2,876	2,779	2,784
Tangible non-current assets	536	509	506
Right-of-use assets	1,022	1,048	952
Financial investments	1	1	1
Deferred tax assets	68	30	70
Total non-current assets	4,503	4,367	4,313
Current assets
Inventories	1,910	1,898	1,761
Accounts receivable	1,334	1,160	1,141
Other current receivables	212	183	222
Cash and cash equivalents	317	29	375
Total current assets	3,773	3,270	3,499
TOTAL ASSETS	8,276	7,637	7,812
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders	3,206	2,934	3,037
Non-controlling interest	18	16	14
Total equity	3,224	2,950	3,051
Non-current liabilities
Non-current interest-bearing liabilities	1,483	1,567	1,544
Non-current lease liabilities	697	682	641
Provisions for pensions	33	34	34
Other non-current liabilities and provisions	394	362	378
Total non-current liabilities	2,607	2,645	2,597
Current liabilities
Current interest-bearing liabilities	124	120	124
Current lease liabilities	366	373	363
Accounts payable	1,173	878	1,022
Other current liabilities	782	671	655
Total current liabilities	2,445	2,042	2,164
TOTAL LIABILITIES	5,052	4,687	4,761
TOTAL EQUITY AND LIABILITIES	8,276	7,637	7,812
Financial net loan liability	2,386	2,747	2,331
Operational net loan liability	1,290	1,658	1,293

STATEMENT OF CHANGES IN EQUITY

		Equity attributable to Parent Company shareholders
MSEK	Share capital	Reserves	Retained earnings, including net profit	Total	Non-controlling interest	Total equity
Closing equity, 31 December 2019	57	4	1,284	1,345	18	1,363
Net profit			146	146	2	148
Other comprehensive income		–46	–1	–47		–47
Non-cash issue1	45		1,442	1,487		1,487
Acquisitions of partly owned subsidiaries				–	1	1
Changes in share of partly owned subsidiaries			2	2	–5	–3
Option liability, acquisitions			–1	–1		–1
Change in value of option liability2			2	2		2
Closing equity, 30 June 2020	102	–42	2,874	2,934	16	2,950
Net profit			136	136	–1	135
Other comprehensive income		–31	–1	–32		–32
Changes in share of partly owned subsidiaries			–1	–1	–3	–4
Contributions in partly owned subsidiaries				–	2	2
Closing equity, 31 December 2020	102	–73	3,008	3,037	14	3,051
Net profit			222	222	0	222
Other comprehensive income		37	1	38		38
Dividend			–76	–76		–76
Repurchase of share options			–3	–3		–3
Sale of own shares			9	9		9
Acquisitions of partly owned subsidiaries				–	10	10
Changes in share of partly owned subsidiaries			–5	–5	–5	–10
Dividend paid in partly owned subsidiaries				–	–1	–1
Change in value of option liability2			–1	–1		–1
Option liability, acquisitions3			–15	–15		–15
Closing equity, 30 June 2021	102	–36	3,140	3,206	18	3,224

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 2020 and

6,897 Class B shares during the second quarter 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 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

MSEK	QUARTER APR-JUN 2021	APR-JUN 2020	REPORTING PERIOD JAN-JUN JAN-JUN 2021 2020		ROLLING 12 MON AS OF 30 JUN 2021	FINANCIAL YEAR 2020 (9 mon)
Operating activities
Operating activities before changes in
working capital	308	248	488	370	1,003	763
Changes in working capital	–37	129	–2	112	192	323
Cash flow from operating activities	271	377	486	482	1,195	1,086
Investing activities
Acquisition of intangible & tangible non
current assets	–37	–55	–75	–59	–169	–149
Sale of intangible & tangible non current assets	0	0	0	0	0	0
Acquisition of subsidiaries & other
business units	–49	–1,694	–127	–1,702	–182	–1,749
Sale of financial non-current assets	0	1	0	1	0	1
Cash flow from investing activities	–86	–1,748	–202	–1,760	–351	–1,897
Cash flow before financing	185	–1,371	284	–1,278	844	–811
Financing activities
Financing activities	–238	245	–343	1,273	–557	31
Cash flow for the period	–53	–1,126	–59	–5	287	–780
Cash and cash equivalents at the beginning
of the period	370	1,157	375	37	29	1,157
Exchange-rate differences in cash and
cash equivalents	0	–2	1	–3	1	–2
Cash and cash equivalents at the end of the period	317	29	317	29	317	375

KEY PER-SHARE DATA

	QUARTER		REPORTING PERIOD		ROLLING 12 MON	FINANCIAL YEAR
SEK	APR-JUN 2021	APR-JUN 2020	JAN-JUN 2021	JAN-JUN 2020	AS OF 30 JUN 2021	2020 (9 mon)
Earnings before dilution	2.85	1.85	4.40	3.80	7.10	4.55
Earnings after dilution	2.85	1.85	4.40	3.80	7.10	4.55
Equity, at the end of the period			63.50	58.20		60.25
NUMBER OF SHARES OUTSTANDING IN THOUSANDS
Number of shares outstanding before dilution	50,481	50,406	50,481	50,406	50,481	50,406
Weighted number of shares outstanding before dilution Weighted number of shares outstanding	50,426	50,406	50,416	39,086	50,411	50,406
after dilution	50,472	50,406	50,447	39,086	50,426	50,406

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 June 2021 and had a total of 240,000 outstanding 2018/22 call options for repurchased shares. For the second quarter of 2021 and the reporting period's first six 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 0.1 percent and 0.05 percent for the quarter and the reporting period, respectively, as of 30 June 2021. The share price on 30 June 2021 was SEK 174.60. Refer also to page 7.

PARENT COMPANY IN SUMMARY

INCOME STATEMENT

	QUARTER REPORTING PERIOD				ROLLING 12 MON	FINANCIAL YEAR
MSEK	APR-JUN 2021	APR-JUN 2020	JAN-JUN 2021	JAN-JUN 2020	AS OF 30 JUN 2021	2020 (9 mon)
Revenue	6	7	12	14	27	22
Other operating income	2	2	4	2	4	2
Total operating income	8	9	16	16	31	24
Operating expenses	–12	–12	–23	–21	–44	–33
Operating profit/loss	–4	–3	–7	–5	–13	–9
Financial income and expenses	1	–2	2	–1	0	–4
Profit/loss after financial items	–3	–5	–5	–6	–13	–13
Appropriations	–	–	–	–3	–	–
Profit/loss before taxes	–3	–5	–5	–9	–13	–13
Taxes	1	1	1	2	3	3
Net profit/loss	–2	–4	–4	–7	–10	–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 JUN 2021	30 JUN 2020	31 DEC 2020
ASSETS
Intangible non-current assets	0	0	0
Tangible non-current assets	0	0	0
Financial non-current assets	3,876	4,023	3,907
Current receivables	182	230	176
Cash and cash equivalents	270	2	357
TOTAL ASSETS	4,328	4,255	4,440
EQUITY, PROVISIONS AND LIABILITIES
Restricted equity	102	102	102
Non-restricted equity	1,881	1,961	1,955
Total equity	1,983	2,063	2,057
Untaxed reserves	–	–	–
Provisions	–	–	–
Non-current liabilities	1,482	1,567	1,544
Current liabilities	863	625	839
TOTAL EQUITY, PROVISIONS AND LIABILITIES	4,328	4,255	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 DISCLOSURES 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, 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.

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.

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.

Group-wide includes the Group's management, finance function and support functions. The support functions include internal communications, investor relations and legal affairs.

Financial items and taxes are not distributed by operating segment but recognised in their entirety in Group-wide.

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 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 based on the geographic domicile of each legal entity).

	JAN-JUN 2021 (6 MON)
MSEK	Alligo	Components & Services	Group-wide	Eliminations	Group total
From external customers by geographic area
Sweden	2,380	693	–	–	3,073
Norway	1,086	13	–	–	1,099
Finland	594	1	–	–	595
Other countries	84	34	–	–	118
From other segments	10	5	12	–27	–
Revenue	4,154	746	12	–27	4,885
EBITA	252	93	–6	0	339
Items affecting comparability	0	0	–2	–	–2
Amortisation of intangible assets incurred in
connection with corporate acquisitions	–31	–4	–	–	–35
Operating profit	221	89	–8	0	302
	JAN-JUN 2020 (6 MON)
MSEK	Alligo	Components & Services	Group-wide	Eliminations	Group total

MSEK	Alligo	Components & Services	Group-wide	Eliminations	Group total
From external customers by geographic area
Sweden	1,645	565	–	–	2,210
Norway	949	11	–	–	960
Finland	554	1	–	–	555
Other countries	75	27	–	–	102
From other segments	12	7	14	–33	–
Revenue	3,235	611	14	–33	3,827
EBITA	170	79	–3	0	246
Items affecting comparability	–2	–	–7	–	–9
Amortisation of intangible assets incurred in connection with corporate acquisitions	–21	–2	–	–	–23
Operating profit	147	77	–10	0	214

Revenue by operating segment and quarter

	2021			2020 (9 mon)
MSEK	Q4	Q3	Q2	Q1	Q3	Q2	Q1
Alligo			2,172	1,982	2,242	1,781	2,012
Components & Services			396	350	296	256	285
Group-wide			6	6	8	7	7
Eliminations			–14	–13	–17	–15	–16
Momentum Group			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			167	85	164	94	122
Components & Services			50	43	40	37	34
Group-wide			–3	–3	–3	–3	–1
Eliminations			0	0	0	0	0
Momentum Group			214	125	201	128	155

Note: Since Momentum Group changed its financial year to the calendar year, the 2020 financial year was 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 is deemed to be a reasonable approximation of their fair value.

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.

MSEK	30 JUN 2021	30 JUN 2020	31 DEC 2020
Financial assets measured at fair value
Financial investments	1	0	1
Derivative hedging instruments	3	2	0
Financial assets measured at amortised cost
Long-term receivables	0	1	0
Accounts receivable	1,334	1,160	1,141
Cash and cash equivalents	317	29	375
Total financial assets	1,655	1,192	1,517
Financial liabilities measured at fair value Derivative hedging instruments Conditional purchase considerations Indebted purchase consideration for acquisition (compulsory redemption) Financial liabilities measured at amortised cost Option liability Interest-bearing liabilities	1 14 – 28 2,670	3 0 46 25 2,742	14 – – 17 2,672
Accounts payable	1,173	878	1,022
Total financial liabilities	3,886	3,694	3,725

NOTE 4 ACQUISITIONS

According to the preliminary acquisition analyses, the assets and liabilities in the acquired businesses closed to date in the financial year amount to the following. The acquisition analyses are deemed to be preliminary mainly because of the short time span since the acquisitions.

	FAIR VALUE RECOGNISED IN THE GROUP
MSEK
ACQUIRED ASSETS
Intangible non-current assets	51
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
Less / additional : Net cash in acquired business2	–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.

Corporate acquisitions carried out since the 2015/16 financial year:

	TIME		NO OF
ACQUISITION	(possessiton taken)	REVENUE1	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	November 2016	MNOK 240	50	Alligo
Arboga Machine Tool AB, SE	March 2017	MSEK 10	5	Components & Services
TriffiQ Företagsprofilering AB2 , SE	September 2017	MSEK 70	18	Alligo
AB Knut Sehlins Industrivaruhus, SE	October 2017	MSEK 40	14	Alligo
Elka Produkter AB2 , SE	October 2017	3 –	10	Alligo
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

1) Refers to information for the full year on the date of acquisition.

2) Momentum Group initially acquired 70 percent of the shares in each company. Momentum Group now owns 100 percent of the shares in TriffiQ Företagsprofilering AB and Reklamproffsen Skandinavien AB and approximately 90 percent of the shares in Company Line Förvaltning AB. 3) The current operations of Elka Produkter AB were established in autumn 2017. Accordingly, there is no full-year information available regarding

comparable revenue.

4) The acquisition was carried out as a conveyance of assets and liabilities.

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

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 JUN 2021	31 DEC 20201	31 MAR 2020	31 MAR 2019
IFRS PERFORMANCE MEASURES
Net profit, MSEK	357	283	217	231
Earnings per share, SEK	7.10	6.50	7.70	8.20
ALTERNATIVE PERFORMANCE MEASURES
Performance measures related to the income statement
Revenue, MSEK	9,443	8,385	6,135	6,024
Operating profit, MSEK	501	413	303	302
of which: Items affecting comparability	–99	–106	–14	–
of which: Amortisation of intangible assets incurred
in connection with corporate acquisitions	–68	–56	–21	–16
EBITA, MSEK of which: Depreciation and amortisaton of tangible	668	575	338	318
assets 2 and other intangible non-current	–107	–86	–31	–31
Profit after financial items, MSEK	454	368	283	296
Operating margin, %	5.3%	4.9%	4.9%	5.0%
EBITA margin, %	7.1%	6.9%	5.5%	5.3%
Profit margin, %	4.8%	4.4%	4.6%	4.9%
Performance measures related to profitability
Return on working capital (EBITA/WC), %	33%	32%	28%	27%
Return on capital employed, %	9%	10%	14%	19%
Return on equity, %	12%	12%	16%	19%
Performance measures related to financial position
Financial net loan liability (closing balance), MSEK	2,386	2,331	708	293
Operational net loan liability (closing balance), MSEK	1,290	1,293	166	266
Equity (closing balance)3 , MSEK	3,206	3,037	2,869	1,303
Equity/assets ratio, %	39%	39%	48%	45%
Other performance measures
Number of employees at the end of the period	2,779	2,670	1,651	1,684
Share price at the end of the period, SEK	174.60	142.00	67.50	93.40

1) These performance measures include the acquisition of Swedol as of 1 April 2020. Refer to the summary on page 2 for performance measures calculated as though the acquisition of Swedol had closed on 1 April 2019.

2) Total depreciation/amortisation of tangible and intangible non-current assets, excluding amortisation of intangible assets arising in connection with corporate acquisitions and IFRS 16 effects.

3) Refers to equity attributable to Parent Company shareholders.

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)

Operational net loan liability measured as non-current interest-bearing liabilities and current interest-bearing liabilities, excluding lease liabilities and net provisions for pensions, less cash and cash equivalents at the end of the period.

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.

Change in revenue for comparable units

Comparable units refer to sales in local currency from units that were part of the Group during the current period and the entire corresponding period in the preceding year. Trading days refer to sales in local currency depending on the difference in the number of trading days compared with the comparative period. Other units refer to the acquisition or 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

	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
EBITA
Operating profit	501	413	303	302
Items affecting comparability
Restructuring expenses	97	97	–	–
Acquisition related expenses	–	7	14	–
Integration expenses for the acquisition of Swedol	–	2	–	–
Split and listing expenses	2	–	–	–
Amortisation of intangible assets incurred in connection with
corporate acquisitions	68	56	21	16
EBITA	668	575	338	318

INTERIM REPORT – 6 MONTHS

1 JANUARY-30 JUNE 2021

	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
WORKING CAPITAL
Average operating assets
Average inventories	1,841	1,602	1,021	975
Average accounts receivable	1,181	1,076	966	956
Total average operating assets	3,022	2,678	1,987	1,931
Average operating liabilities
Average accounts payable	–1,018	–886	–759	–736
Total average operating liabilities	–1,018	–886	–759	–736
Average working capital	2,004	1,792	1,228	1,195
EBITA	668	575	338	318
Return on working capital (EBITA/WC), %	33%	32%	28%	27%

	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
CAPITAL EMPLOYED
Average balance-sheet total	7,889	5,952	3,318	2,813
Average non-interest-bearing liabilities and provisions
Average non-interest-bearing non-current liabilities	–377	–244	–72	–74
Average non-interest-bearing current liabilities	–1,696	–1,407	–1,147	–1,150
Total average non-interest-bearing liabilities and provisions	–2,073	–1,651	–1,219	–1,224
Average capital employed	5,816	4,301	2,099	1,589
Operating profit	501	413	303	302
Financial income	3	4	1	1
Total operating profit + financial income	504	417	304	303
Return on capital employed, %	9%	10%	14%	19%
	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019

MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
RETURN ON EQUITY Average equity Net profit	3,053 358	2,326 282	1,333 214	1,220 229
Return on equity, %	12%	12%	16%	19%

* Refers to equity and earnings attributable to Parent Company shareholders.

	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
FINANCIAL NET LOAN LIABILITY (CLOSING BALANCE)
Non-current interest-bearing liabilities	2,213	2,219	1,461	164
Current interest-bearing liabilities	490	487	404	137
Cash and cash equivalents	–317	–375	–1,157	–8
Financial net loan liability (closing balance)	2,386	2,331	708	293

	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
OPERATIONAL NET LOAN LIABILITY (CLOSING BALANCE)
Financial net loan liability	2,386	2,331	708	293
Financial lease liabilities	–1,063	–1,004	–511	–
Net provisions for pensions	–33	–34	–31	–27
Operational net loan liability (closing balance)	1,290	1,293	166	266

	12 MONTHS ENDING
MSEK	30 JUN 2021	31 DEC 2020	31 MAR 2020	31 MAR 2019
EQUITY/ASSETS RATIO
Balance-sheet total (closing balance)	8,276	7,812	5,940	2,914
Equity (closing balance)*	3,206	3,037	2,869	1,303
Equity/assets ratio, %	39%	39%	48%	45%

* Refers to equity attributable to Parent Company shareholders.