Bilia — Interim / Quarterly Report 2021

Apr 27, 2021

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	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
The Group
Net turnover	9,344	7,450	32,062	30,168
Operational earnings 1)	528	279	1,842	1,593
Operational margin, %	5.6	3.7	5.7	5.3
Operating profit	504	255	1,613	1,364
Operating margin, %	5.4	3.4	5.0	4.5
Profit before tax	480	219	1,521	1,260
Net profit for the period/year	377	167	1,194	984
Earnings per share, SEK 2)	3.85	1.65	12.05	9.85

1) For reconciliation of operational earnings with operating profit, see Note 3.

2) The number of shares used in the calculation is shown in the Consolidated Statement of Income and Other Comprehensive Income.

The Managing Director's comments

• Four times higher result in Norway
• Strong result from used cars
• Continued high order backlog for new cars

Higher operational earnings for the first quarter

Our operational earnings improved by SEK 249 M to SEK 528 M, an improvement of as much as 89 per cent. Once again Norway reported a fantastic result of SEK 206 M, which is an improvement of SEK 154 M compared with the previous year. Profit for the Service Business amounted to SEK 319 M, which is SEK 56 M higher than last year. The Car Business's profit amounted to SEK 225 M, an improvement of SEK 207 M. Sales of both new and used cars reported higher profits. The result from sales of used cars was still very strong at SEK 123 M. The order backlog for new cars remains at a high level of 13,741 cars, which is almost 300 more than at the turn of the year.

Ongoing discussions with Volvo

Discussions with Volvo are ongoing and we hope to find new forms for a new collaboration with Volvo even after the end of the termination period in November 2022.

Expansion with new and existing car brands

At the start of the year, Bilia was pleased to enter into agreements to acquire businesses, which means that we can welcome two new car brands to the Bilia family.

We have reached an agreement to acquire an authorised Porsche dealer with two facilities -Porsche Center Malmö and Porsche Center Helsingborg - with a turnover in 2020 of just under SEK 1,000 M. We're extremely happy to be working with Porsche Sweden on its successful growth journey and can see opportunities for continued expansion. We're proud that the current owners want to remain in the business with us at Bilia.

In April we reached an agreement to acquire Upplands Motor Stockholm AB, an authorised Mercedes dealer with four facilities and a turnover in 2020 of approximately SEK 1,200 M. Mercedes will be an excellent complement to Bilia's current car brand portfolio. This acquisition brings Bilia a new and exciting business area - trucks - in which Mercedes is one of the largest and most successful players in Europe.

In April we also reached an agreement to acquire five facilities from Funnemark in Norway, an authorised Toyota dealer with a turnover in 2020 of approximately NOK 1,200 M. Through this acquisition, we are expanding our strategic collaboration with Toyota in Norway. These are wellmanaged operations with a long history and strong roots in their markets that complement Bilia's current operations and provide the potential for future development.

In January we reached an agreement to acquire 80 per cent of Felgteknikk Norge AS, a small familyowned company that will provide Bilia with expertise and production capacity in the strategically important tyre business.

We're very pleased to be able to present incredibly strong performance in the first quarter and want to thank all of Bilia's employees for their fantastic efforts.

Per Avander, Managing Director and CEO

Group results

Net turnover and earnings

First quarter 2021

Net turnover amounted to SEK 9,344 M (7,450). For comparable operations and adjusted for exchange rate fluctuations, net turnover increased by approximately 27 per cent. Exchange rate fluctuations, primarily the Norwegian krone, adversely affected net turnover by approximately SEK 160 M.

Operating profit amounted to SEK 504 M (255). Operational earnings amounted to SEK 528 M (279), and the operational margin was 5.6 per cent (3.7).

The Service Business reported a result that was SEK 56 M or 21 per cent higher than last year, which is attributable to higher sales and lower costs. The Car Business reported a result that was SEK 207 M higher than last year, attributable to sales of used and new cars of SEK 108 M and SEK 99 M respectively. The Fuel Business reported a result that was SEK 7 M higher than last year.

During the first quarter, operations were partly limited by restrictions due to spreading of COVID-19. In Sweden, demand weakened somewhat, especially in the workshops, as a result of restrictions on travel and the recommendations to work from home. Our operations in Norway, Belgium, Luxembourg, and Germany have been partially closed, but this had less of an impact on operations than in the previous year. The group's employee expenses decreased by SEK 2 M during the first quarter due to the furlough of staff. This is attributable to operations in Western Europe. The result does not include any financial support for furloughing staff in Sweden or Norway. We are continuing to work at all our facilities to implement measures to reduce the risk of further spreading COVID-19.

Profit levels and customer satisfaction during the quarter have resulted in a provision totalling SEK 6 M (6) being made for employee bonuses in Sweden.

The group's underlying overheads were around 1 per cent lower compared with last year. Overheads amounted to 9.9 per cent of net turnover, which was 2.7 per cent lower than last year.

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	5,416	4,614	19,115	18,313
Norway	2,916	1,916	9,013	8,013
Western Europe	1,005	913	3,908	3,816
Parent Company, other	7	7	26	26
Total	9,344	7,450	32,062	30,168

Net turnover by geographic market

Operational earnings by geographic market

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	335	244	1,269	1,178
Norway	206	52	598	444
Western Europe	15	-10	66	41
Parent Company, other	-28	-7	-91	-70
Total	528	279	1,842	1,593

Margin by geographic market
	First quarter		April 20 - March 21	Full year
Per cent		2020		2020
Sweden	R 2	53	6 6
Norway	71		ิ 6 คิ	5.5
Western Europe	15
Parent Company, other
Total

Net financial items and tax

Net financial items for the first quarter amounted to SEK -24 M (-36) and were positively affected by an increase in profits from participations in associated companies and changes in currency rates.

Tax during the first quarter amounted to SEK-103 M (-52), and the effective tax rate was 21 per cent (24).

Operating cash flow

Operating cash flow for the first quarter amounted to SEK-101 M (258). After acquisitions and disposals of operations and changes in financial assets, cash flow for the first quarter amounted to SEK -116 M (265).

Financial position

The balance sheet total increased by SEK 543 M during the year to total SEK 16,959 M. The increase was primarily attributable to higher right-of-use assets, accounts receivable, and inventories.

Equity increased by SEK 333 M during the year to total SEK 4,301 M. During the first quarter, 780,000 of the company's own shares were bought back at a total purchase price of SEK 86 M. The total holding of own shares as at 31 March 2021 is 4,666,210 shares.

The equity/assets ratio amounted to 25 per cent (22).

Net debt increased during the year by SEK 937 M to total SEK 3,270 M. The increase is primarily explained by higher lease liabilities under IFRS 16, with SEK 616 M attributable to new rental contracts. Excluding lease liabilities attributable to IFRS 16, net debt amounted to SEK 43 M, an increase of SEK 321 M since December 2020. The ratio of net debt to EBITDA excluding IFRS 16 was 0.02 compared with -0.2 (minus due to positive net debt) in the previous year.

Excluding IFRS 16

Liquidity remained good, and at the end of the first quarter a receivable from the banks (Nordea and DNB) of SEK 1,388 M was reported (debt: 247). Bilia's combined credit limit with Nordea and DNB amounts to SEK 1,500 M.

Investments (excluding right-of-use assets)

Acquisitions of non-current assets during the first quarter amounted to SEK 71 M (68) excluding lease vehicles and SEK 335 M (512) including lease vehicles. Replacement investments represented SEK 15 M (14), expansion investments SEK 26 M (22), environmental investments SEK 1 M (2), investments in new construction and additions to properties SEK 16 M (19), finance leases SEK 13 M (11), and lease vehicles SEK 264 M (444).

	, , , , , , , , , , , , , , , , , , , First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	276	334	1.248	1,306
Norway	24	143	40	159
Western Europe	11	18	30	37
Parent Company, other	24	17	77	70
Total	335	512	1,395	1,572

Investments in non-current assets by geographic market

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• Since the end of the quarter, COVID-19 has continued to spread, with updated restrictions for our operations. The high degree of uncertainty still renders it impossible to estimate the impact on the financial results.

• No other significant events have occurred since the end of the quarter.

Further information about the above-mentioned events along with other press information is available at bilia.com.

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Growth in the Service Business

		First quarter
Per cent	Sweden	Norway	Total
Change from last year
Reported turnover	1.5	20.0	6.6
Underlying turnover	-2.3	24.0	6.2
Calendar effect	1.6	1.6	1.6
Adjusted turnover	-0.7	25.6	7.8

At the end of the first quarter, the number of customers with service subscriptions amounted to 123,000 (120,000 at the end of 2020) compared with our long-term goal of 130,000. The number of wheels stored on behalf of our customers amounted to 356,000 (387,000 at the end of 2020) compared with our long-term goal of 600,000.

Turnover by geographic market
	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	1,205	1,187	4,516	4,498
Norway	538	448	1.952	1,862
Western Europe	137	161	587	611
Total	1,880	1.796	7,055	6,971

Operational earnings by geographic market
	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	216	203	844	831
Norway	93	54	312	273
Western Europe	10	6	57	53
Total	319	263	1.213	1.157

Margin by geographic market

	First quarter		April 20 -	Full year
Per cent	2021	2020	March 21	2020
Sweden	17.9	17.1	18.7	18.5
Norway	17.2	12.0	16.0	14.6
Western Europe	7.4	4.1	9.6	8.6
Total	16.9	14.7	17.2	16.6

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		Deliveries				Order backlog
	First quarter		April 20 -	Full year	31 March	31 March
Number of	2021	2020	March 21	2020	2021	2020
Sweden	8,456	7,434	30,087	29,065	6,662	8,267
Norway	3,548	2,024	9,923	8,399	4,528	2,924
Western Europe	1,714	1,356	6,202	5,844	2,551	2,388
Total	13,718	10,814	46,212	43,308	13,741	13,579

New cars by geographic market

Used cars by geographic market April 20 - Full year Number of 2021 2020 March 21 2020 Sweden 7,928 8,294 31,558 31,924 Norway 2,977 2,875 11,770 11,668 Western Europe 1,370 1,247 5,628 5,505 Total 12,275 12,416 48,956 49,097 Deliveries First quarter

Previous year has been recalculated.

Turnover by geographic market

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	4,273	3,426	14,513	13,666
Norway	2,534	1,581	7,596	6,643
Western Europe	891	776	3,422	3,307
Total	7,698	5,783	25,531	23,616

Operational earnings by geographic market

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Sweden	107	36	389	318
Norway	113	-2	286	171
Western Europe	5	-16	9	-12
Total	225	18	684	477

Margin by geographic market

	First quarter		April 20 -	Full year
Per cent	2021	2020	March 21	2020
Sweden	2.5	1.1	2.7	2.3
Norway	4.5	-0.1	3.8	2.6
Western Europe	0.5	-2.1	0.3	-0.4
Total	2.9	0.3	2.7	2.0

Fuel Business

Strong result for the first quarter

First quarter 2021

• Turnover amounted to SEK 264 M (290), a decrease of 9 per cent.
• Operational earnings amounted to $\bullet$ SEK 12 M (5).
• The margin was 4.7 per cent (1.9).

Full-year 2020

• Turnover amounted to SEK 1,093 M (1,338), a decrease of 18 per cent.
• Operational earnings amounted to $\bullet$ SEK 29 M (25).
• The margin was 2.7 per cent (1.8). $\bullet$

Turnover and earnings

First quarter 2021

The Fuel Business is concentrated mainly in Sweden and result for the quarter amounted to SEK 12 M (5). The result during the quarter was positively affected by a higher gross profit margin.

Turnover
	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Total	264	290	1,067	1,093
Operational earnings
		April 20 - First quarter		Full year
SEK M	2021	2020	March 21	2020
Total	12	5	36	29
Margin
	First quarter		April 20 -	Full year
Per cent	2021	2020	March 21	2020
Total	4.7	1.9	3.4	2.7

$\boldsymbol{\mathit{\Sigma}}$ bilia

Other information

Risks and uncertainties

As a result of its operations, the Bilia Group is exposed to both operating risks and financial risks.

Some of the operating risks include:

Risks related to changes in demand for Bilia's products and services due to changes in the market related to economic conditions, government decisions, the establishment of alternative sales channels, the competitiveness of products and technological development. Events such as natural disasters and pandemics can have significant impacts on Bilia's turnover and profit due to a lack of product availability, economic downturn or effects on in-house production.

The ongoing COVID-19 pandemic could have a negative impact on business, depending on how it continues and on the effectiveness of the ongoing vaccination programmes. The high degree of uncertainty regarding the COVID-19 pandemic, together with future measures from customers and/or authorities, makes it impossible to rule out a future material impact on the other business areas, such as sales of used cars and the Service Business.

Lower demand for cars could entail risks related to the current stock of cars and cars with guaranteed buy-back values.

• Risks related to dealer/service authorisations, since Bilia is dependent on approval from manufacturers/general agents to operate, expand and establish new sales of new cars. Authorisation agreements can be terminated by the other party and Bilia's vehicle suppliers could become insolvent, which could entail the risk of disruptions in the operations. During 2020, Volvo Cars terminated Bilia's dealer agreements in Sweden and Norway. Discussions are in progress about collaboration after the agreements come to an end, but it is not currently possible to estimate the financial consequences of these discussions for Bilia's operation.
• Risks related to alternative sales channels, as Bilia currently conducts its business mainly through its own facilities, and to a limited extent via digital channels. If general agents or manufacturers with which Bilia works were to move to their own sales channels, this would have an adverse impact on Bilia's business. During the year, Volvo Cars completed the acquisition of a dealer in Sweden, through which it intends to operate.

• Risks related to Bilia not having the capacity and resources to develop its own concepts and services, and of our suppliers not being able to offer competitive products in line with the customers' wishes and requirements.

• Risks related to recruiting and retaining skilled employees, retaining strategic business locations for our operations, acquiring and integrating new operations in a successful manner, which could affect Bilia's potential to expand its operations according to its set financial goals.

• Risks related to non-compliance with regulations, a lack of environmental pollution remediation and a lack of control over IT operation could entail regulatory consequences, financial burdens, operational disruptions and an adverse impact on Bilia's reputation.
• Risks related to cyber attacks on Bilia as a company could involve operational disruptions with financial impact as a result.

The financial risks include liquidity risks, interest rate risks, credit risks and currency risks.

Bilia works continuously with risk identification and risk assessment. For further published information about the risks that affect the Group, please refer to the 2020 Annual Report.

Seasonal variations and number of working days

Bilia's operations and operating profit are influenced to a limited extent by seasonal variations. The number of working days during the report periods is influenced by how holidays fall in the different countries in different years. The number of working days in the period influences business operations and profits in the Service Business in particular, but also in the Car Business.

Related party transactions

For a description of related party transactions, see page 91, "Note 32" of the 2020 Annual Report.

Parent Company

Bilia AB is responsible for the Group's management, strategic planning, purchasing, public relations, business development, HR, real estate activities, accounting and financing.

Accounts - Group

Consolidated Statement of Income and Other Comprehensive Income

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Net turnover	9,344	7,450	32,062	30,168
Costs of goods sold	$-7,911$	$-6,260$	$-26,819$	$-25,168$
Gross profit	1,433	1,190	5,243	5,000
Other operating income	1	$\overline{2}$	18	19
Selling and administrative expenses	$-928$	$-936$	$-3,499$	$-3,507$
Other operating expenses	$-2$	$-1$	$-149$	-148
Operating profit 1)	504	255	1,613	1,364
Financial income	$\mathbf{1}$	$\mathbf{1}$	3	3
Financial expenses	$-37$	$-45$	$-145$	$-153$
Profit from shares in associated companies	12	8	50	46
Profit before tax	480	219	1,521	1,260
Tax	$-103$	$-52$	$-327$	-276
Net profit for the period/year	377	167	1,194	984
Other comprehensive income/loss
Items that can be reclassified to profit or loss
Translation differences attributable to foreign
operations	73	$-30$	10	-93
Other comprehensive income/loss after tax	73	-30	10	-93
Comprehensive income for the period/year	450	137	1,204	891
Net profit for the period/year attributable to:
Parent Company's shareholders	377	167	1,194	984
Comprehensive income for the period/year
attributable to:
Parent Company's shareholders	450	137	1,204	891
Weighted average number of shares, '000:
- before dilution	98,414	100,134	99,666	100,090
- after dilution	98,521	100,231	99,768	100,190
Basic earnings/loss per share, SEK	3.85	1.65	12.05	9.85
Diluted earnings/loss per share, SEK	3.85	1.65	12.05	9.85
Weighted average number of own shares, '000	4,386	2,666	3,134	2,710
1) Straight-line amortisation/depreciation by asset class:		$-31$		$-121$
- Intellectual property - Land and buildings	$-29$ $-16$	$-16$	$-119$ $-66$	$-66$
- Equipment, tools, fixtures and fittings	$-28$	$-28$	$-115$	$-115$
- Leased vehicles	$-96$	$-98$	$-384$	$-386$
- Right-of-use assets	$-116$	$-114$	$-442$	$-440$
Total	$-285$	$-287$	$-1,126$	$-1,128$

Consolidated Statement of Financial Position, Summary

SEK M 2021 2020 2020 Assets Non-current assets Intangible assets 546 Intellectual property 557 618 833 Goodwill 812 847 1,379 1,369 1,465 Property, plant and equipment 895 900 803 Land and buildings 61 48 40 Construction in progress 537 Equipment, tools, fixtures and fittings 483 505 2,781 3,084 Leased vehicles 2,613 Right-of-use assets 3,273 2,649 2,850 7,379 7,282 6,861 Long-term investments Financial investments 1) 490 477 449 Long-term receivables $2)$ 1 490 478 449 Deferred tax assets 144 131 100 Total non-current assets 9,392 8,839 9,296 Current assets Inventories, merchandise 3,964 3,743 4,399 Current receivables Other receivables 1) 1,983 1,771 1,270 Cash and cash equivalents 2) 1,620 2,063 175 Total current assets 7,567 7,577 5,844 TOTAL ASSETS 16,959 16,416 15,140 Equity and liabilities Equity 257 257 257 Share capital 167 167 Other contributed capital 167 $\overline{4}$ -69 -6 Reserves Retained earnings including net profit for the year 3,873 3,613 2,899 4,301 3,968 Total equity 3,317 Non-current liabilities Bond issue 3) 1,296 1,292 1,290 Interest-bearing liabilities 4) 208 171 205 Lease liabilities 4) 2,729 2,168 2,370 Other liabilities and provisions 2,353 2,286 2,363 6,586 6,228 5,917 Current liabilities Bond issue 4) 130 Interest-bearing liabilities 4) 636 653 849 Lease liabilities 4) 498 443 404 Other liabilities and provisions 4,938 5,305 4,342 6,072 6,531 5,595 TOTAL EQUITY AND LIABILITIES 16,959 16,416 15,140 Assets 1) Of which interest-bearing 481 468 441		31 March 31 December	31 March
2,064 1,620 175
Liabilities	2) Interest-bearing
3) Of which interest-bearing 1,300 1,300 1,300 4) Interest-bearing 4,071 3,828 3,565

Statement of Changes in Group Equity, Summary

		31 March 31 December	31 March
SEK M	2021	2020	2020
Opening balance	3,968	3.186	3,186
Incentive programme	$\Omega$	3	$\Omega$
Buy-back of own shares	$-86$	$-122$
Revaluation of put option	$-31$	10	-6
Comprehensive income for the year	450	891	137
Equity at end of period	4,301	3,968	3,317

Consolidated Statement of Cash Flows

	First quarter		April 20 -	Full year
SEKM	2021	2020	March 21	2020
Operating activities
Profit before tax	480	219	1,521	1,260
Depreciation and impairment losses	285	287	1,186	1,188
Other items not affecting cash	$-4$	$-14$	116	106
Tax paid	$-127$	-90	-258	-221
Change in inventories	$-118$	97	492	707
Change in operating receivables	$-172$	719	-711	180
Change in operating liabilities	$-474$	-769	230	-65
Cash flow from operating activities	$-130$	449	2,576	3,155
Investing activities
Acquisition of non-current assets (intangible and tangible)	-71	-68	-234	-231
Disposal of non-current assets (intangible and tangible)	0	1	45	46
Acquisition of leased vehicles	-264	-444	$-1,161$	$-1,341$
Disposal of leased vehicles	364	320	1,287	1,243
Operating cash flow	$-101$	258	2,513	2,872
Investment in financial assets	0	0	-4	-4
Disposal of financial assets	0	2	3	5
Acquisition of subsidiary/operation, net	-15	0	-185	$-170$
Disposal of subsidiary/operation, net	0	5	7	12
Cash flow from investing activities	14	-184	-242	-440
Cash flow after net investments	$-116$	265	2,334	2,715
Financing activities
Borrowings	0	400	1,030	1,430
Repayment of loans	$-130$	-587	$-1,254$	$-1,711$
Repayment of lease liabilities	$-16$	$-17$	-66	-67
Repayment of lease liabilities IFRS 16	$-124$	-131	-407	$-414$
Buy-back of own shares	-86	0	$-208$	$-122$
Cash flow from financing activities	$-356$	-335	-905	-884
Change in cash and cash equivalents, excl. translation
differences	$-472$	-70	1,429	1,831
Exchange difference in cash and cash equivalents	29	9	16	-4
Change in cash and cash equivalents	$-443$	-61	1,445	1,827
Cash and cash equivalents at start of period	2,063	236	175	236
Cash and cash equivalents at end of period	1,620	175	1,620	2,063

Additional disclosures - Group

Note 1 Accounting principles

This interim report has been prepared in accordance with International Financial Accounting Standards (IFRSs) IAS 34 and applicable provisions of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, "Interim Reports". The same accounting policies and calculation methods have been applied for the Group and the Parent Company as in the most recent Annual Report.

New accounting policies from 1 January 2021

New or revised IFRS to be used in future are not expected to have any material effect on the consolidated financial statements.

Disclosures in accordance with IAS 34, paragraph 16, are made not only in the financial statements and related notes, but also in other parts of this interim report.

Note 2 Fair value of financial instruments

Derivative instruments such as interest rate swaps and forward exchange contracts are used to manage Bilia's interest rate risk. They should only be used to meet the requirements on minimising risk in a cost-effective manner as prescribed by the finance policy. The carrying amount of financial instruments is a reasonable approximation of fair value.

Fair value is determined on the basis of the following three levels:

Level 1: according to prices quoted on an active market for the same instrument.

Level 2: based on directly or indirectly observable market inputs other than those included in level 1.

Level 3: according to inputs not based on observable market data.

Currency derivatives are recognised as financial assets and liabilities and are measured at fair value in accordance with Level 2. The value of the currency derivatives is not material and does not constitute a significant item in the Consolidated Statement of Financial Position. Measurement of the currency derivatives at fair value has resulted in a cost of SEK 0.5 M that is matched by a revenue stemming from revaluation of assets in foreign currencies. The effect on the Group's profit is SEK 0 M.

Calculation of fair value

The fair value of currency derivatives is determined on the basis of market rates. If such rates are not available, the fair value is calculated by discounting the difference between the contracted forward rate and the forward rate that can be obtained on the balance sheet date for the remaining contract period.

Note 3 Revenues and costs that affect comparability

Restructuring costs during 2021 were attributable to severance solutions. Restructuring costs in 2020 could mainly be attributed to Volvo Cars' termination of Bilia's dealer agreements, the closure of three of a total of seven facilities in Germany, costs for severance solutions in Sweden, Norway and Western Europe, and the relocation of an operation in Sweden. The costs related to Volvo Cars' termination of the dealer agreements are an initial assessment of the costs for restructuring our operations.

Acquisition-related expenses and value adjustments relate to costs for acquiring operations.

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
The Group
Operational earnings	528	279	1.842	1,593
- Structural costs etc.	$-1$	0	$-137$	$-136$
- Acquisition-related costs and value adjustments		0	0	0
- Amortisation/impairment losses of surplus values	$-23$	$-24$	-92	-93
Operating profit	504	255	1.613	1,364

Note 4 Group's operating segments

31 March 2021
SEKM	Service	Car	Fuel	Total	Segment reconciliation	Group
Net turnover
External sales	1,376		264	9,338	6
		7,698				9,344
Internal sales	504			504	$-504$	$\overline{\phantom{a}}$
Total net turnover	1,880	7,698	264	9,842	$-498$	9,344
Depreciation/amortisation	$-101$	$-167$	-1	$-269$	$-16$	$-285$
Operational earnings/Operating profit/loss	319	225	12	556	$-52$	504
Interest income						$\mathbf{1}$
Interest expenses						$-37$
Profit from shares in associated companies		12		12		12
Profit before tax						480
Tax expense for the period						$-103$
Net profit for the period						377
Revenue and costs that affect comparability:
- Structural costs etc.	$-1$	0		$-1$		$-1$
- Acquisition-related costs and value adjustments	$\Omega$	0		$\mathbf 0$		$\Omega$
- Amortisation/impairment losses of surplus values	$-12$	$-11$		$-23$		$-23$
Total	$-13$	$-11$	$\overline{a}$	$-24$		$-24$
Assets
Shares in associated companies		481		481		481
Deferred tax assets						144
Other assets						16,334
Total assets						16,959
Investments in non-current assets	32	279		311	24	335
Liabilities
Equity						4,301
Liabilities						12,658
Total liabilities and equity						16,959

		Service			Car
			Western			Western
SEKM	Sweden	Norway	Europe	Sweden	Norway	Europe
Turnover
External sales	879	382	115	4,273	2,534	891
Internal sales	326	156	22
Total turnover	1,205	538	137	4,273	2,534	891
Depreciation/amortisation	-60	$-28$	$-13$	$-131$	$-22$	$-14$
Operational earnings	216	93	10	107	113	5
Profit from shares in associated companies				12
Revenue and costs that affect comparability:
- Structural costs etc.	$-1$
- Acquisition-related costs and value adjustments	0					$\mathbf 0$
- Amortisation/impairment losses of surplus values	-3	$-3$	-6	$-3$	$-3$	$-5$
Total	-4	-3	-6	-3	$-3$	-5
Shares in associated companies				481
Investments in non-current assets	25	4	3	251	20	8

	Revenues from Non-current
SEK M	customers	assets
Geographical segments
Sweden	5,422	8,048
Norway	2,916	1,735
Germany	203	99
Luxembourg	394	591
Belgium	409	571
Segment reconciliation	0	-1,796
Total	9,344	9,248

31 March 2020

SEK M	Service	Car	Fuel	Total	Segment reconciliation	Group
Net turnover
External sales	1,370	5,783	290	7,443	7	7,450
Internal sales	426			426	-426	-
Total net turnover	1,796	5,783	290	7,869	-419	7,450
Depreciation/amortisation	-94	-174	-2	-270	-17	-287
Operational earnings/Operating profit/loss	263	18	5	286	-31	255
Interest income						1
Interest expenses						-45
Shares in profits of associated companies		8		8		8
Profit before tax						219
Tax expense for the period						-52
Net profit for the period						167
Revenue and costs that affect comparability:
- Structural costs etc.	0	0		0		0
- Acquisition-related costs and value adjustments	0	0		0		0
- Amortisation of surplus values	-12	-12		-24		-24
Total	-12	-12	-	-24	-	-24
Assets
Interests in associated companies		441		441		441
Deferred tax assets						100
Other assets						14,599
Total assets						15,140
Investments in non-current assets	29	465	1	495	17	512
Liabilities
Equity						3,317
Liabilities						11,823
Total liabilities and equity						15,140

		Service			Car
			Western			Western
SEK M	Sweden	Norway	Europe	Sweden	Norway	Europe
Turnover
External sales	898	335	137	3,426	1,581	776
Internal sales	289	113	24
Total turnover	1,187	448	161	3,426	1,581	776
Depreciation/amortisation	$-55$	$-24$	$-15$	$-134$	$-27$	$-13$
Operational earnings	203	54	6	36	$-2$	$-16$
Shares in profits of associated companies				8
Revenue and costs that affect comparability:
- Structural costs etc.
- Acquisition-related costs and value adjustments	0					$\mathbf 0$
- Amortisation of surplus values	$-3$	-3	-6	$-3$	$-3$	-6
Total	-3	-3	-6	-3	-3	-6
Interests in associated companies				441
Investments in non-current assets	21	6	2	312	137	16

	Revenues from Non-current
SEK M	customers	assets
Geographical segments
Sweden	4,621	7,331
Norway	1,916	2,033
Germany	236	111
Luxembourg	289	676
Belgium	388	657
Segment reconciliation	0	$-1,612$
Total	7,450	9,196

Note 5 Acquisitions

The acquisition of Felgteknikk Norge AS has not had a significant impact on the Group's financial position, which is why an acquisition analysis is not reported.

Note 6 Specification of interest-bearing net debt/receivable and EBITDA

Specification of interest-bearing net debt/receivable

	31 March	31 December	31 March
SEK M	2021	2020	2020
Current interest-bearing liabilities	636	783	849
Non-current interest-bearing liabilities	1.508	1.471	1.505
Lease liabilities IFRS 16	3.227	2,611	2.774
Cash and cash equivalents	$-1,620$	$-2,063$	$-175$
Interest-bearing assets	$\mathbf 0$	-1
Shares in associated companies	$-481$	-468	-441
Net debt(+)/receivable(-) at end of period/year	3.270	2.333	4,512
Net debt(+)/receivable(-) at end of period/year, excluding
IFRS 16	43	$-278$	1,738

The ratio of net debt to EBITDA

	31 March	31 December	31 March
SEK M	2021	2020	2020
Operational earnings	528	1,593	279
Operational earnings, excluding IFRS 16	513	1,537	268
Total depreciation/amortisation	285	1,128	287
-amortisation of surplus values	$-23$	-93	$-24$
-depreciation of right-of-use assets	$-115$	-440	$-114$
-depreciation of leased vehicles with repurchase agreements	$-78$	$-318$	-82
Depreciation/amortisation added back	184	717	181
Depreciation/amortisation added back, excluding IFRS 16	69	277	67
EBITDA	712	2,310	460
EBITDA, excluding IFRS 16	582	1,814	335
The ratio of net debt to EBITDA rolling 12 months, times	1.3	1.0	2.3
The ratio of net debt to EBITDA rolling 12 months, times,
excluding IFRS 16	0.02	$-0.2$	1.2

Accounts - Parent Company

Income Statement for Parent Company

	First quarter		April 20 -	Full year
SEK M	2021	2020	March 21	2020
Net turnover	150	138	557	545
Administrative expenses	$-179$	$-146$	$-654$	$-621$
Operating loss 1)	$-29$	-8	-97	-76
Result from financial items
Profit from shares in Group companies	$\mathbf 0$	$\Omega$	$-1$	-1
Interest income from Group companies	9	21	40	52
Other interest income and similar line items	$\Omega$	$\Omega$	$\Omega$	$\Omega$
Interest expenses to Group companies	$\Omega$	$\Omega$	$\Omega$	$\Omega$
Interest expenses and similar line items	-8	$-15$	$-39$	-46
Profit/loss after financial items	$-28$	-2	-97	-71
Appropriations	$\overline{0}$	0	858	858
Profit before tax	$-28$	$-2$	761	787
Tax	10	$-10$	$-141$	$-161$
Net profit for the period/year	$-18$	$-12$	620	626
1) Straight-line amortisation/depreciation by asset class:
- Intellectual property	$\mathbf 0$	$\Omega$	$\Omega$	$\Omega$
- Buildings	-6	-6	$-23$	$-23$
- Equipment, tools, fixtures and fittings	$\Omega$	0	$-1$	$-1$
Total	-6	-6	$-24$	$-24$

Balance Sheet for Parent Company, Summary

		31 March 31 December	31 March
SEK M	2021	2020	2020
Assets
Non-current assets
Intangible assets
Intellectual property	0	0	0
	$\bf{0}$	0	0
Property, plant and equipment
Buildings	169	175	178
Construction in progress	49	39	21
Equipment, tools, fixtures and fittings	4	4	5
	222	218	204
Long-term investments
Shares in Group companies	1,528	1,528	1,328
Other securities held as non-current assets	1	1	1
Deferred tax asset	71	61	48
	1,600	1,590	1,377
Total non-current assets	1,822	1,808	1,581
Current assets
Current receivables
Receivables from Group companies	435	1,429	459
Other receivables	179	123	173
Cash on hand and demand deposits	1,999	1,833	1,495
Total current assets	2,613	3,385	2,127
TOTAL ASSETS	4,435	5,193	3,708
Equity and liabilities
Equity
Restricted equity
Share capital	257	257	257
Statutory reserve	47	47	47
	304	304	304
Non-restricted equity
Share premium reserve	167	167	167
Retained earnings including net profit for the year	1,302	1,404	886
	1,469	1,571	1,053
Total equity	1,773	1,875	1,357
Untaxed reserves	1,016	1,016	863
Provisions
Deferred tax liability	15	15	14
	15	15	14
Non-current liabilities
Bond issue	1,295	1,292	1,290
Other liabilities	5	5	5
	1,300	1,297	1,295
Current liabilities
Bond issue		130
Liabilities to Group companies	58	555	3
Other liabilities	273	305	176
	331	990	179
TOTAL EQUITY AND LIABILITIES	4,435	5,193	3,708

	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021
Net turnover, SEK M	7,426	6,805	8,403	7,450	6,777	7,559	8,382	9,344
Operational earnings, SEK M	306	280	415	279	335	402	577	528
Operational margin, %	4.1	4.1	4.9	3.7	5.0	5.3	6.9	5.6
Operating profit, SEK M	280	264	370	255	293	375	441	504
Operating margin, %	3.8	3.9	4.4	3.4	4.3	5.0	5.3	5.4
Profit before tax, SEK M	251	237	334	219	266	353	422	480
Profit/loss for the period, SEK M	203	188	262	167	213	281	323	377
The ratio of net debt to EBITDA excl. IFRS 16, times 1)	1.4	1.1	1.3	1.2	0.2	-0.4	-0.2	0.02
Return on capital employed, % 1)	16.6	16.0	15.8	15.0	15.1	16.2	16.7	19.1
Return on equity, % 1)	25.7	25.9	26.5	26.5	26.1	27.4	27.5	31.6
Equity/assets ratio, %	19	21	20	22	24	24	24	25
Data per share (SEK) 2)
Earnings/loss for the period	2.05	1.85	2.60 3)	1.65 4)	2.15 4)	2.80 4)	3.25 5)	3.85 7)
Equity	28	30	32 4)	33 4)	35 4)	38 4)	40 6)	44 8)

1) Rolling 12 months.

2) Based on number of shares outstanding, 100,950,952. 3) Based on weighted average number of shares outstanding during fourth quarter, 100,585,602.

4) Based on number of shares outstanding, 100,133,742.

5) Based on weighted average number of shares outstanding during fourth quarter, 99,958,525. 6) Based on number of shares outstanding, 98,913,742.

7) Based on weighted average number of shares outstanding during first quarter, 98,414,175.

8) Based on number of shares outstanding, 98,133,742.

	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021
Turnover, SEK M	1,750	1,570	2,028	1,796	1,622	1,558	1,995	1,880
Operational earnings, SEK M	217	195	315	263	281	237	376	319
Margin, %	12.4	12.4	15.6	14.7	17.3	15.2	18.8	16.9
Adjusted turnover Sweden and Norway, growth in %	2.0	7.1	10.9	7.5	-2.0	6.0	5.2	7.8

	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021
Turnover, SEK M	5,654	5,233	6,577	5,783	5,157	6,049	6,627	7,698
Operational earnings, SEK M	102	86	136	18	56	169	234	225
Margin, %	1.8	1.6	2.1	0.3	1.1	2.8	3.5	2.9
New cars delivered, number	13,078	9,858	14,398	10,814	8,685	10,550	13,259	13,718
Order backlog of new cars, number	11,579	13,083	11,767	13,579	12,848	14,492	13,458	13,741
Used cars delivered, number 1)	12,367	12,272	11,540	12,416	12,345	13,388	10,948	12,275

1) Previous year has been recalculated.

	Q2 2019	Q3 2019	Q4 2019	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021
Turnover, SEK M	362	338	331	290	257	287	259	264
Operational earnings, SEK M	6	6	2	5	8	9	7	12
Margin, %	1.5	1.9	0.4	1.9	3.0	2.9	2.9	4.7

Definitions and performance measures

Bilia applies quidelines from ESMA (European Securities and Markets Authority) concerning alternative performance measures (APMs). Even though these performance measures are not defined or specified by IFRSs, Bilia believes that they provide valuable information to investors and Bilia's management as a complement to IFRSs for assessing Bilia's performance.

Return on equity Net profit for the year in relation to average equity.

Return on capital employed Operating profit plus interest expense included in the business and financial income in relation to average capital employed.

Amortisation of surplus values Occurs in connection with acquisitions of operations and is recognised under intangible assets. Normally these surplus values are amortised over a 10-year period.

EBITDA Operational earnings plus total depreciation/amortisation less amortisation of surplus values and depreciation of leased vehicles with repurchase agreements.

Excluding IFRS 16 Information excluding the accounting standard IFRS 16 Leases.

Acquisition-related costs and value adjustments Pertains to costs for legal consultants and other external costs associated directly with an acquisition, and value adjustments regarding acquired inventory assets, which are depreciated over the turnover rate of the asset.

Adjusted turnover Net turnover is adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is also made for exchange rate differences and for calendar effect. Adjusted turnover reported under Quarterly review - 8 quarters for the Service Business relates to Sweden and Norway.

Comparable operations Financial information and number of units that are adjusted for operations that have been acquired or disposed of during one of the periods.

Deliveries Cars that have been physically turned over to the customer and invoiced and are included in reported net turnover.

Liquidity Unutilised credit with Nordea and DNB and cash and cash equivalents.

Net debt Net debt consists of interest-bearing liabilities less cash and cash equivalents, interestbearing current and long-term receivables, interests in associated companies and leased vehicles, long-term.

The ratio of net debt to EBITDA Net debt in relation to EBITDA.

Operating cash flow Cash flow from operating activities plus investments in and disposals of intangible assets and property, plant and equipment.

Operational margin Operational earnings in relation to net turnover. For the business areas the operational margin is called "Margin".

Operational earnings Operating profit, excluding revenues and costs that affect comparability between accounting periods and/or operating segments. They include, but are not limited to, acquisition-related expenses, value adjustments, restructurings and amortisation of surplus values. For the business areas operational earnings are the only result measurement.

Order backlog New cars ordered by the customer but not yet delivered.

Gain from sale of operation Difference between purchase consideration and the operation's consolidated carrying amount, less selling costs.

Operating margin Operating profit in relation to net turnover.

Equity/assets ratio Equity in relation to balance sheet total.

Structual costs Costs that significantly alter the thrust and/or scope of the operation. Examples of structural costs may be costs for reducing the number of employees and costs for vacating a leased facility before the expiration of the lease.

Capital employed Balance sheet total less non-interest-bearing current liabilities and provisions as well as deferred tax liabilities.

Growth Increase or decrease of net turnover in relation to the preceding year.

Underlying values Values that are adjusted for operations that have been acquired or disposed of during one of the periods. Adjustment is made for exchange rate differences, where applicable.

Reconciliation of performance measures can be found at bilia.com/en/investors/financialinformation/

Additional Bilia disclosures

Press and analyst meeting

On Tuesday, 27 April 2021, Bilia is hosting press and analyst meetings where Managing Director and CEO Per Avander and CFO Kristina Franzén will present the interim report and answer questions. There will be a meeting in Swedish at 09:00 CEST and a meeting in English at 14:00 CEST. These are telephone meetings and the telephone number for phoning in is +46 (0)8 22 90 90, code 674445.

Contact

For further information please contact:

Per Avander, Managing Director and CEO, +46 (0)10 497 70 00, per avander@bilia.se Kristina Franzén, CFO, +46 (0)10 497 73 40, kristina.franzen@bilia.se

Calendar

Interim report April-June 2021: 23 July 2021 Interim report July-September 2021: 26 October 2021

Prospective information

Prospective information in this report is based on management's expectations at the time of the report. Even if the Board of Directors and management find the expectations to be reasonable, there is no quarantee that these expectations are or will turn out to be correct. Consequently, future outcomes may vary considerably compared with those foreseen in the prospective information due to such circumstances as a changed market situation for the Group's services or more generally changed conditions relating to the economy, markets and competition, changes in legal requirements and other political measures, as well as fluctuations in exchange rates. The company does not undertake to update or correct such prospective information other than what is stipulated by law.

Gothenburg, 27 April 2021 Bilia AB (publ) Board of Directors and Managing Director

This is information that Bilia AB (publ) is obliged to make public pursuant to the EU's Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on 27 April 2021, at 08:30 CEST.

Bilia is one of Europe's largest car dealers, with a leading position in servicing and sales of cars and transport vehicles plus supplementary services such as financing and insurance. Bilia has about 140 facilities in Sweden, Norway, Germany, Luxembourg and Belgium plus two online auction sites, one in Sweden and one in Norway.

Bilia's Service Business comprises a well-developed range of services and service concepts that are continuously developed to simplify car ownership for the customers. The Service Business comprises workshop services, spare parts, store sales and e-commerce.

Bilia's Car Business comprises sales of both new and used cars and transport vehicles, plus supplementary services such as financing and insurance. Bilia sells cars from Volvo, BMW, Toyota, Renault, Lexus, MINI, Dacia and Alpine and transport vehicles from Renault, Toyota and Dacia.

Bilia's Fuel Business comprises fuel sales and car washes.

Bilia AB (publ) Box 9003, SE-400 91 Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: +46 (0)10 497 70 00 bilia.com Corporate ID No.: 556112-5690