Bong

Quarterly Report • Nov 9, 2023

Interim Report Q3, January-September 2023

July – September 2023

• Net sales decreased to SEK 477 million (527)
• Operating profit before depreciation decreased to SEK 28 million (47)
• Operating profit decreased to SEK 8 million (31)
• Earnings after tax amounted to SEK -2 million (18)
• Earnings per share amounted to SEK -0.01 (0.08)
• Cash flow after investing activities amounted to SEK 22 million (2)

January – September 2023

• Net sales decreased to SEK 1,549 million (1,564)
• Operating profit before depreciation decreased to SEK 96 million (104)
• Operating profit decreased to SEK 40 million (55)
• Earnings after tax amounted to SEK 1 million (21)
• Earnings per share amounted to SEK 0.01 (0.10)
• Cash flow after investing activities amounted to SEK 30 million (7)

Net debt Cash flow after investing

activities - Q3 Equity ratio Operating profit/loss - Q3 Net sales - Q3

Adjusted net debt

Pension liabilities

IFRS 16

Bong is one of the leading providers of envelope products in Europe that also offers solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are packaging within retail and e-commerce and the envelope market within Eastern Europe. The Group has annual sales of approximately SEK 2.1 billion and about 1,100 employees in 13 countries. Bong has strong market positions in most of the important markets in Europe and the Group sees interesting possibilities for continued development. Bong is a public limited company and its shares are listed on Nasdaq Stockholm (Small Cap).

Key Ratios	Jul-Sept	Jul-Sept	Jan-Sept	Jan-Sept	Oct 2022-	Jan-Dec
MSEK	2023	2022	2023	2022	Sept 2023	2022
Net sales	477	527	1,549	1,564	2,150	2,165
EBITDA	28	47	96	104	157	165
EBIT	8	31	40	55	83	98
Non-recurring items, goodwill	-	-	-	-	-	-
Adjusted EBIT	8	31	40	55	83	98
Earnings after tax	-2	18	1	21	22	43
Earning per share, SEK	-0.01	0.08	0.01	0.10	0.12	0.21
Cash flow after investing activities	22	2	30	7	95	72
Equity/asset ratio, %	36.4%	32.6%	36.4%	32.6%	36.4%	33.9%

Letter to the shareholders

Despite a strong economic headwind Bong managed to stay on track with its margins. Our tough cost management will guide us through this difficult economic climate and we will profit once the European economy is better again, says Bong's CEO Kai Steigleder.

MARKET AND INDUSTRY

Also, in 3rd. quarter market demand in the paper converting industry was below last year and below our own expectations. Main reason for the weak consumer climate in Europe is high inflation, continuous war in Ukraine and uncertain future outlooks.

The graphical and the packaging industry as well as Retail business and e-Commerce are concerned alike from those rather weak macroeconomic conditions which will probably continue also into first half of 2024.

Even though Bong's net profit is below the exceptionally good level of 2022, we managed to stay on track with good sales margins and through a tough and decisive cost management. This was compensating the below 2022 top line sales figures. Our energy prices in Q4 2023 and in Q1 2024 are predicted to rise again due to the new war in Israel and the deliberate damage of the Baltic Sea gas pipeline.

Light Packaging

Currency adjusted sales of Bong's Light Packaging after nine months in 2023 was -10% compared to the same period last year. This disappointing result is in line with the currently weak market development in e-Commerce and in retail stores across Europe. But we are confident for the future because we follow the right path, have good new products and e-Commerce is predicted to rise again upcoming years until 2027.

Envelope

Bong's currency adjusted sales development in envelopes after nine months in 2023 was -6% compared to the same period last year. The volume development is in line with the long-term European market trend which is shrinking due to digital changes in the last decade. Our margins for envelopes remain stable on a healthy level and therefore support the necessary investment into our Light Packaging range. Bong's European market share in envelopes remained unchanged.

OPERATING PROFIT

The Group's currency-adjusted sales decreased by -8% compared with ytd Q3 2022. Bong's gross margin has decreased compared to the first nine months 2022 but it is still on a good level. Operating profit decreased to SEK 40 million (55).

The operating profit ytd 2023 was affected negatively by restructuring cost of SEK 2 million (0) and machine sales have had a positive impact of SEK 7 million (8).

IMPROVED CASH FLOW AND ADJUSTED NET DEBT / ADJUSTED EBITDA

Cash flow from operating activities amounted to SEK 47 million (22). Adjusted net debt / adjusted EBITDA according to Bong's Bond loan amounts to 0.83 (1.30).

FOCUS AND STRATEGY

We will continue our strategy to transform Bong from a pure envelope company some years ago into a much more diversified paper converting company with a strong part of activities in the Light Packaging segment. Even though the current macroeconomic climate in Europe is less favorable our products are promising and will meet the demand once the consumer confidence is better and the economy growing again.

One future focus will be new customer acquisition in Light Packaging. Another focus will be positioning and listing our promising new products such as our high-end "Turn Over Top" paper carrier bags for the retail segment and our enlarged AirPro Green® padded bag range for e-Commerce.

For envelopes we target to gain volume through gain of market share whilst keeping our margins on today's good level.

We are working on reducing our energy consumption in our production sites to become greener and at the same time to save costs.

Finally, I am thanking all our loyal and hard-working employees that will make our transformation process in Bong happen as well as our stakeholders and shareholders for their continuous support.

Kai Steigleder Chief Executive Officer

Financial overview

Sales and profit

January – September 2023

Consolidated sales for the period reached SEK 1,549 million (1,564). Exchange rate fluctuations had a positive impact on sales of SEK 119 million (50) compared with 2022.

Operating profit decreased to SEK 40 million (55). The Group's gross margin has decreased compared to last year. During the period operating profit was positively affected by capital gains of SEK 7 million (8) attributable to sales of machinery. Exchange rate fluctuations for the period had a positive impact on operating profit of SEK 5 million (0).

Net financial items for the period amounted to SEK -30 million (-27).

Earnings before tax amounted to SEK 10 million (29) and reported earnings after tax were SEK 1 million (21).

Bong's total light packaging sales amounted to SEK 423 million (436). Currency fluctuations had a positive impact on light packaging sales of SEK 35 million (14) compared with the corresponding period in 2022.

Bong's total envelope sales amounted to SEK 1,091 million (1,085). Currency fluctuations had a positive impact on envelope sales of SEK 81 million (36) compared to same period 2022.

July – September 2023

Consolidated sales for the period reached SEK 477 million (527). Exchange rate fluctuations had a positive impact on sales of SEK 52 million (20) compared with 2022.

Operating profit decreased to SEK 8 million (30). The Group's gross margin is lower than same period previous year. Exchange rate fluctuations had no impact on operating profit during the period (0).

Net financial items for the period amounted to SEK -9 million (-10).

Earnings before tax amounted to SEK -1 million (20) and reported earnings after tax were SEK -2 million (18).

Bong's total light packaging sales amounted to SEK 131 million (144). Currency fluctuations had a positive impact on light packaging sales of SEK 15 million (6) compared with the corresponding period in 2022.

Bong's total envelope sales amounted to SEK 335 million (367). Currency fluctuations had a positive impact on envelope sales of SEK 37 million (14) compared to same period 2022.

Cash flow and investments

The cash flow after investing activities increased to SEK 22 million (7) compared to previous year. Cash flow from operating activities before changes in working capital amounted to SEK 55 million (60). Working capital had a negative impact on the cash flow of SEK -8 million (-38).

Restructuring costs had a negative impact on the cash flow of SEK -2 million (0). Net investments had a negative impact during the period of SEK -17 million (-15). Investments in the amount of SEK 28 million will be converted into leasing agreements.

Financial position

Cash and cash equivalents at 30 September 2023 amounted to SEK 118 million (SEK 145 million at 31 December 2022). The Group had unutilized credit facilities of SEK 8 million on the same date. Total available cash and cash equivalents thus amounted to SEK 126 million (SEK 153 million at 31 December 2022). Consolidated equity at the end of September 2023 was SEK 602 million (SEK 572 million at 31 December 2022).

Translation of the net asset value of foreign subsidiaries to Swedish Krona and changes in the fair value of pension debt and derivative instruments increased consolidated equity by SEK 30 million. The interest bearing net loan debt amounted to SEK 440 million, whereof pension debt amounts to SEK 154 million and IFRS 16 leasing contracts amount to SEK 197 million (SEK 448 million at 31 December 2022, whereof pension debt amounts to SEK 163 million and IFRS 16 Leasing contracts SEK 202 million).

The refinancing process of the senior secured bonds with due date in October 2024 is ongoing. Despite the current economic climate, Bong is today in a stronger position. Therefore different refinancing alternatives is also being evaluated. This process will be finalized during 2024

Employees

The average number of employees during the period was 1,095 (1,129). The Group had 1,055 (1,147) employees at the end of September 2023. Bong has intensively worked on improving productivity and adjusting staff to meet current demand.

Parent Company

The Parent Company's business extends to management of operating subsidiaries and certain Group management functions. Sales were SEK 1.8 million (1.6) and earnings before tax for the period were SEK -0.7 million (-5.6).

Events after the end of the period

No material events have occurred after the end of the period.

Risks and opportunities

Business risks for the Bong Group are primarily related to market development and various types of financial risks. There has not been any change to significant risks and uncertain positions since Bong's annual report for 2022 was released. For further information, please refer to Bong's annual report and website bong.com.

Accounting policies

This interim report has been prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Application was consistent with the accounting principles outlined in the 2022 annual report and the interim report should be read along with those principles. The figures in this interim report have not been rounded off, which is why notes and tables may not total correct amounts. The purpose is that each sub-row should correspond to its source of origin and therefore rounding differences can occur on the total sum.

Kristianstad 9 November 2023

Kai Steigleder

Chief Executive Officer

Additional information

Kai Steigleder, CEO- & Carsten Grimmer, CFO for Bong AB. Tel +46 44-20 70 00 (switchboard)

Financial Calendar:

• Year-End Report 2023, 14 February 2024
• Annual General Meeting, 15 May 2024, Stockholm
• Interim Report January-March 2024, 15 May 2024
• Interim Report January-June 2024, July 2024
• Interim Report January–September 2024, November 2024

Auditor's report Bong AB Org.nr. 556034-1579

Introduction

We have reviewed the condensed interim financial information (interim report) of Bong Entity as of 30 September 2023 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish An nual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Stan dard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review proce dures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

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

Malmö, 9 november 2023

PricewaterhouseCoopers AB

Tobias Stråhle Ulf Carlström

Auditor in Charge Authorized Public Accountant Authorized Public Accountant

Income statements in summary

		Jul–Sept	Jul–Sept	Jan–Sept	Jan–Sept	Oct 2022-	Jan–Dec
MSEK	Note	2023 3 month	2022 3 month	2023 9 month	2022 9 month	Sept 2023 12 month	2022 12 month
Revenue	1,2	476.5	526.8	1,548.9	1,563.8	2,149.8	2,164.7
Cost of goods sold		-404.5	-412.2	-1,304.6	-1,294.4	-1,790.1	-1,779.9
Gross profit		72.0	114.6	244.3	269.4	359.7	384.8
Selling expenses		-34.8	-33.4	-116.1	-114.9	-147.9	-146.7
Administrative expenses		-30.1	-27.0	-94.9	-82.4	-134.0	-121.5
Other operating income and expenses		0.9	-23.7	6.5	-16.7	4.9	-18.3
Operating profit		8.0	30.5	39.8	55.4	82.7	98.3
Net financial items		-9.2	-10.4	-29.8	-26.7	-39.6	-36.5
Result before tax		-1.2	20.1	10.0	28.7	43.1	61.8
Income tax		-0.9	-2.5	-9.5	-7.8	-20.8	-19.1
Net result		-2.1	17.6	0.5	20.9	22.3	42.7
Total comprehensive income attributable to:
Shareholders in Parent Company		-1.4	17.5	2.1	21.5	24.7	44.1
Non-controlling interests		-0.7	0.1	-1.6	-0.6	-2.4	-1.4
Earnings per share		-0.01	0.08	0.01	0.10	0.12	0.21
Earnings per share, excluding non recurring items		-0.01	0.08	0.01	0.10	0.12	0.21
Average number of shares		211,205,058	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
STATEMENT OF COMPREHENSIVE INCOME		Jul–Sept	Jul–Sept	Jan–Sept	Jan–Sept	Oct 2022-	Jan–Dec
MSEK		2023	2022	2023	2022	Sept 2023	2022
Net result		-2.1	17.6	0.5	20.9	22.3	42.7
Other comprehensive income
Items that will not be reclassified to profit or loss:
Actuarial profit/loss on post employment benefit obligations		7.3	14.4	7.3	56.5	1.8	51.0
Items that may be reclassified subsequently to profit or loss:		7.3	14.4	7.3	56.5	1.8	51.0
Cash flow hedges	3	0.0	0.0	0.0	-0.1	0.0	-0.1
Translation differences		-19.5	7.1	21.7	28.1	40.3	46.7
Income tax relating to components of other comprehensive income		-3.5	-2.9	0.9	-10.9	3.3	-8.5
		-23.0	4.2	22.6	17.1	43.6	38.1
Other comprehensive income for the period. net of tax		-15.7	18.6	29.9	73.6	45.4	89.1
Total comprehensive income		-17.8	36.2	30.4	94.5	67.7	131.8
Total comprehensive income attributable to:
Shareholders in Parent Company		-17.1	36.1	32.0	95.1	70.1	133.2
Non-controlling interests		-0.7	0.1	-1.6	-0.6	-2.4	-1.4

Balance sheet in summary

		30 Sept	30 Sept	31 Dec
MSEK	Note	2023	2022	2022
Assets
Intangible assets	4,5	505.9	480.2	489.7
Tangible assets		369.6	337.5	370.1
Other non-current assets	6	90.7	89.4	91.1
Inventories		269.0	310.7	284.7
Current receivables	7	302.6	325.0	305.5
Cash and cash equivalents	8	118.1	96.6	144.7
Total assets		1,655.9	1,639.4	1.685.8
Equity and liabilities
Equity		602.0	534.5	571.8
Non-current liabilities	9	494.3	527.3	536.1
Current liabilities	10	559.6	577.6	577.9
Total equity and liabilities		1,655.9	1,639.4	1.685.8

Cash flow statement

		Jul-Sept 2023	Jul-Sept 2022	Jan-Sept 2023	Jan-Sept 2022	Oct 2022- Sept 2023	Jan-Dec 2022
MSEK	Note	3 month	3 month	9 month	9 month	12 month	12 month
Operating activities
Operating profit/loss		7.9	30.5	39.8	55.4	82.7	98.3
Depreciation, amortisation, and impairment losses		20.1	16.5	56.6	48.9	74.0	66.3
Interest paid Financial expenses		-7.5 -0.1	-6.6 -2.6	-22.7 -2.4	-17.5 -5.3	-29.7 -4.8	-24.5 -7.7
Tax paid		3.1	-0.4	-5.5	-5.2	-7.3	-7.0
Other items not affecting liquidity		-7.1	-2.5	-10.4	-16.2	-8.9	-14.7
Cash flow from operating activities before changes in
working capital		16.4	34.9	55.4	60.1	106.0	110.7
Changes in working capital
Inventories		8.8	-28.5	26.5	-88.4	57.1	-57.8
Current receivables		21.4	-16.0	6.1	-28.7	35.9	1.1
Current operating liabilities		-19.0	25.2	-40.8	79.2	-62.7	57.3
Cash flow from operating activities		27.6	15.6	47.2	22.2	136.3	111.3
Cash flow from investing activities
Aquisition of intangible and tangible assets incl.
advanced payments to suppliers		-6.8	-13.4	-22.2	-24.7	-49.1	-51.6
Disposal of intangible and tangible assets		1.1	0.1	4.8	9.5	8.0	12.7
Cash flow from investing activities		-5.7	-13.3	-17.4	-15.2	-41.1	-38.9
Cash flow after investing activities		21.9	2.3	29.8	7.0	95.2	72.4
Cash flow from financing activities
Change in other long-term debt		-8.2	-7.6	-25.1	-18.3	-33.1	-26.3
IFRS-16 lease payment		-12.8	-11.2	-36.0	-32.2	-50.4	-46.6
Cash flow from financing activities		-21.0	-18.8	-61.1	-50.5	-83.5	-72.9
Cash flow for the period		0.9	-16.5	-31.3	-43.5	11.7	-0.5
Cash and cash equivalents at beginning of period		118.7	112.7	144.7	135.3	96.6	135.3
Exchange rate difference in cash and cash equivalents		-1.5	0.4	4.7	4.8	9.8	9.9
Cash and cash equivalents at end of period		118.1	96.6	118.1	96.6	118.1	144.7

CHANGES IN EQUITY

		Jan-Sept	Jan-Sept	Jan-Dec
MSEK	Note	2023	2022	2022
Opening balance for the period		571.8	440.0	440.0
Dividend, minorities		-0.2	-	-
Non-controlling interests		-1.6	-0.6	-1.4
Total comprehensive income		32.0	95.1	133.2
Closing balance for the period		602.0	534.5	571.8

Notes (MSEK)

Note 1 - Net sales and non-current asset by geographical area

Jul-Sept 2023		Jul-Sept 2022			Jan-Sept 2023			Jan-Sept 2022			Oct 2022-Sept 2023			Jan-Dec 2022
Net sales	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.	Envelope	Light Pack.	IFRS Adj.
Sweden	22	13	1	28	15	1	82	36	4	87	48	4	109	53	6	114	65	6
Nordic and Baltics	25	10	0	25	12	0	87	28	0	86	32	0	117	42	0	116	46	0
Central Europe	135	52	6	149	57	7	442	165	17	424	165	22	599	240	24	581	240	29
South Europe	83	24	3	84	24	6	263	82	11	247	83	13	365	111	21	349	112	23
UK	56	24	0	65	24	1	172	71	3	193	74	3	235	98	5	256	101	5
Other	14	8	0	16	12	1	45	41	0	48	34	1	64	62	0	67	55	0
Total	335	131	10	367	144	16	1,091	423	35	1,085	436	43	1,489	606	55	1,483	619	63

Note 1 - cont'd

Intangible and tangible assets	2023-09-30	2022-09-30	2022-12-31
Sweden	115	145	118
Nordic and Baltics	3	3	3
Central Europe	451	422	438
South Europe	271	210	257
UK	34	36	43
Other	1	1	1
Total	876	818	860

Note 2 - Segment information

OPERATING SEGMENTS

Operating segments are reported in a manner consistent with the internal reports presented to the chief operating decision maker. The chief operating decision maker is the function responsible for the allocation of resources and the assessment of the operating

Net turnover and EBITDA before restructuring costs per segment

segments' earnings. For the Group, this function has been identified as the CEO. Segment reporting for the business units areas comprises operating EBITDA before restructuring costs.

SEGMENT INFORMATION

The definition of the segments are primarily related to geografical areas as disclosed below.

The segments apply the same accounting principles as the Group apart from the revenue recognition of sales of raw materials, sales of waste material and rental income. In the internal reporting these are reported as a reduction of cost while in the consolidated statements these are accounted for as revenue.

Central Europe

This segment includes the companies in Germany, Poland, Belgium, Romania and Switzerland.

South Europe and North Africa This segment includes the companies in France, Belgium, Italy, Spain and Tunisia.

Nordics

This segment includes the companies in Sweden, Norway, Denmark and Finland.

United Kingdom

This segment includes the companies in United Kingdom.

IFRS adjustments

IFRS adjustments contains revenue recognition of sales of raw materials, sales of waste material and rental income. In the internal reporting these are reported as a reduction of cost while in the consolidated statements these are accounted for as revenue.

			2023-09-30					2022-09-30
Segments	Revenue from external customers	IFRS Adjustments	Revenue from other segments	Total revenue	EBITDA	Revenue from external customers	IFRS Adjustments	Revenue from other segments	Total	EBITDA
Central Europe	616.3	14.0	49.4	679.7	57.2	614.2	19.0	76.6	709.8	63.0
South Europe and north Africa	444.5	10.3	26.7	481.5	9.3	421.9	10.9	24.4	457.2	18.4
Nordics	211.8	8.6	23.1	243.5	23.1	222.1	10.0	9.4	241.5	10.1
United Kingdom	240.8	2.6	0.1	243.5	3.0	262.5	3.2	0.5	266.2	8.6
Group transactions and eliminations	0.0	0.0	-99.3	-99.3	6.0	0.0	0.0	-110.9	-110.9	3.8
Total	1,513.4	35.5	0.0	1,548.9	98.5	1,520.7	43.1	0.0	1,563.8	103.9
Restructuring costs					-2.1					0.4
Depreciations and amortisations					-56.6					-48.9
Financial income					1.9					0.0
Financial expenses					-31.7					-26.7
Result before tax					10.0					28.7
Income tax					-9.5					-7.8
Net result for the year					0.5					20.9

Note 3 - Financial assets and liabilities

The table below shows the Group's financial assets and liabilities in the form of derivatives measured at fair value. All financial derivatives measured at fair value are in Category 2. These include interest rate swaps and foreign exchange contracts and the valuation is based on the forward interest rates derived from observable yield curves.

2023-09-30	Assets	Liabilities
Currency forwards - cash flow hedges	0.0	0.0
Total	0.0	0.0
2022-09-30	Assets	Liabilities
Currency forwards - cash flow hedges	0.0	0.0
Total	0.0	0.0
2022-12-31	Assets	Liabilities
Currency forwards - cash flow hedges	0.0	0.0
Total	0.0	0.0

For the above contracts the following amounts are found in the hedge reserve under Total comprehensive income; currency forwards - cash flow hedges SEK 0.0 million.

Other financial assets and liabilities

Fair value of the following financial assets and liabilities is estimated to be equal to book value:

• Trade receivables and other receivables
• Other current receivables
• Cash and cash equivalents
• Long-term and short-term loans
• Trade payables and other liabilities
• Other financial assets and liabilities

Information about netting of financial assets and liabilities

The Group does not apply net recognition for any of its other significant assets and liabilities and has no netting agreements with financial counterparties.

Note 4 - Intangible assets	2023-09-30	2022-09-30	2022-12-31
Goodwill	504.9	478.8	488.0
Other intangible assets	1.0	1.4	1.7
Total	505.9	480.2	489.7
Note 5 - Goodwill	2023-09-30	2022-09-30	2022-12-31
Opening costs	488.0	454.5	454.5
Purchase/acqusition	-	-	-
Write-down	-	-	-
Exchange rate differences	16.9	24.3	33.5
Closing costs	504.9	478.8	488.0

Note 6 - Other non-current assets	2023-09-30	2022-09-30	2022-12-31
Deferred tax assets	89.9	88.5	90.3
Other non-current receivables	0.8	0.9	0.8
Total	90.7	89.4	91.1
Note 7 - Current receivables	2023-09-30	2022-09-30	2022-12-31
Receivables	193.8	200.5	192.2
Other current assets	108.8	124.5	113.3

Total 302.6 325.0 305.5

Note 8 - Cash and cash equivalent	2023-09-30	2022-09-30	2022-12-31
Cash/Bank	118.0	96.5	144.6
Cash/Bank escrow account	0.1	0.1	0.1
Total	118.1	96.6	144.7
Note 9 - Non-current liabilities	2023-09-30	2022-09-30	2022-12-31
Interest-bearing loans	175.8	202.3	196.9
Leasing contracts - IFRS 16	144.3	147.5	154.5
Pension debt	154.0	158.9	163.2
Deferred tax	8.6	8.0	11.0
Other liabilities	11.6	10.6	10.5
Total	494.3	527.3	536.1
Note 10 - Current liabilities	2023-09-30	2022-09-30	2022-12-31
Interest-bearing loans	31.7	31.2	31.3
Leasing contracts - IFRS 16	52.6	45.8	47.0
Payables	153.7	198.4	196.6
Other liabilities	321.6	302.2	303.0
Total	559.6	577.6	577.9

The Bond loan 2021 is booked to amortised cost which means that the nominal value of the loan SEK 110 million has been reduced for related accrued expenses which will adjust the booked value of the loan at each end of the reporting period until the due date of the loan in October 2024 when the booked value will be the same as the nominal value.

Note 11 - Adjusted interest bearing net loan debt/Adjusted EBITDA

Adjusted interest bearing net loan debt	2023-09-30	2022-12-31
Interest bearing loans, non-current liabilities	474.1	514.6
Interest bearing loans, current liabilities	84.3	78.4
Cash and cash equivalent	-118.1	-144.7
Net Debt	440.3	448.3
Pension debt	-154.0	-163.2
Leasing contracts - IFRS 16	-196.9	-201.6
Adjusted net debt	89.4	83.5

Adjusted EBITDA 12 month rolling	2023-09-30	2022-12-31
Profit	22.3	42.7
Financial charges	39.4	36.3
Tax	20.8	19.1
Depreciations	74.0	66.3
Restructuring cost	4.1	1.6
Transaction cost	0.2	0.2
Minority result	2.6	0.8
IFRS 16, lease payments	-55.6	-49.2
Adjusted EBITDA	107.8	117.8
Adjusted interest bearing net loan debt/Adjusted EBITDA	0.83	0.71

QUARTERLY DATA. GROUP

MSEK	3/2023	2/2023	1/2023	4/2022	3/2022	2/2022	1/2022	4/2021	3/2021	2/2021	1/2021	4/2020	3/2020	2/2020	1/2020	4/2019
Net Revenue	476.5	497.5	574.9	600.9	526.8	517.1	519.9	507.0	429.9	407.3	459.7	505.1	420.9	398.8	518.3	567.9
Operating expenses	-468.5	-487.2	-553.3	-558.0	-496.3	-497.8	-514.4	-494.3	-421.0	-405.0	-437.5	-512.7	-417.9	-418.5	-513.0	-554.2
Operating profit	8.0	10.3	21.6	42.9	30.5	19.3	5.5	12.7	8.9	2.3	22.2	-7.6	3.0	-19.7	5.3	13.7
Net financial items	-9.2	-10.3	-10.3	-9.8	-10.4	-8.0	-8.3	-7.1	-10.8	-9.4	-8.5	-9.3	-9.4	-10.2	-8.4	-7.8
Profit before tax	-1.2	0.0	11.3	33.1	20.1	11.3	-2.8	5.6	-1.9	-7.1	13.7	-16.9	-6.4	-30.0	-3.1	5.9

KEY RATIOS	Note	Jan-Sept 2023	Jan-Sept 2022	Oct 2022- Sept 2023	Jan-Dec 2022
Operating margin, %		2.6	3.5	3.9	4.5
Return on equity, %*		-	-	4.36	8.71
Return on capital employed, %*		-	-	7.37	9.10
Equity/assets ratio, %*		36.4	32.6	36.4	33.9
Net debt/equity ratio times*		0.73	0.92	0.73	0.78
Net loan debt/EBITDA*		-	-	2.81	2.72
Adjusted interest bearing net loan
debt/adjusted EBITDA*	11	-	-	0.83	0.71
Capital employed, MSEK*		1,160.5	1,120.2	1,160.5	1,164.8
Interest-bearing net loan debt, MSEK*		440.4	489.3	440.4	448.3
Average capital employed, MSEK		-	-	1,140.3	1,089.7

For the key figures above, are those marked * considered to be APM (Alternative Performance Measures) and not follow IFRS. They are judged however by management to be important to show shareholders the Group's underlying performance, profitability and financial position. It should be noted that these measures, as defined, may not be comparable to similarly titled measures used by other companies. For definitions see page 13.

DATA PER SHARE	Jan-Sept	Jan-Sept	Oct 2022-	Jan-Dec
	2023	2022	Sept 2023	2022
Earnings per share, SEK	0.01	0.10	0.12	0.21
Earnings per share, excluding non recurring items, SEK	0.01	0.10	0.12	0.21
Basic equity per share, SEK	2.79	2.15	2.79	2.36
	2.85	2.53	2.85	2.71
Number of shares outstanding at end	211.205.058	211.205.058	211.205.058	211.205.058
of period	211,205,058	211,205,058	211,205,058	211,205,058
Number of shares, basic	211,205,058	211,205,058	211,205,058	211,205,058

Five-year summary

Key ratios	2022	2021	2020	2019	2018
Net sales, MSEK	2,165	1,804	1,843	2,166	2,220
Operating profit/loss, MSEK	98	46	-19	32	-52
Extraordinary items, MSEK	-	-18	-35	-	-103
Profit/loss after tax, MSEK	43	3	-66	-24	-148
Cash flow after investing activities, MSEK	72	60	31	78	-65
Operating margin, %	4.5	2.5	-1.0	1.5	-2.3
Return on equity, %	8.7	5.2	neg	neg	neg
Average capital employed, MSEK	1,090	1,004	1,064	983	991
Return on capital employed, %	9.1	6.4	neg	3.2	neg
Equity ratio, %	33.9	31	30	33	38
Net loan debt, MSEK	448	439	471	506	349
Net loan debt/equity, times	0.78	1.00	1.14	0.91	0.61
Net debt/EBITDA, times	2.7	3.4	4.9	4.2	5.0
Average number of employees	1,134	1,141	1,195	1,334	1,446
Number of shares
Basic number of shares outstanding at end of period	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Diluted number of shares outstanding at end of period	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Average basic number of shares	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Average diluted number of shares	211,205,058	211,205,058	211,205,058	211,205,058	211,205,058
Earnings per share
Before dilution, SEK	0.21	0.02	-0.31	-0.11	-0.71
After dilution, SEK	0.21	0.02	-0.31	-0.11	-0.71
Earnings per share. before dilution, excluding non-recurring items, SEK	0.21	0.11	-0.14	-0.11	-0.22
Earnings per share. after dilution, excluding non-recurring items, SEK	0.21	0.11	-0.14	-0.11	-0.22
Equity per share
Before dilution, SEK	2.71	2.08	1.95	2.50	2.70
After dilution, SEK	2.71	2.08	1.95	2.50	2.70
Cash flow from operating activities per share
Before dilution, SEK	0.53	0.32	0.16	0.48	-0.28
After dilution, SEK	0.53	0.32	0.16	0.48	-0.28
Other data per share
Dividend, SEK	0.00	0.00	0.00	0.00	0.00
Quoted market price on the balance sheet date, SEK	1.1	0.85	0.6	0.7	1.0
P/E-ratio, times	5.4	41.3	neg	neg	neg
Adjusted P/E-ratio, times	0.0	8.06	neg	neg	neg
Price/Equity before dilution, %	41	41	30	29	35
Price/Equity after dilution, %	41	41	30	29	35

Definitions

This Report includes financial key data and ratios based on concepts defined in International Financial Reporting Standards (IFRS), Alternative Performance Measurements and company-specific ratios. Definitions are found below.

For historical values: http://www.bong.com/en/investors/reports/historical-values

ADJUSTED EARNINGS PER SHARE

Profit after tax, excluding items affecting comparability, divided by the average number of shares before and after dilution.

ADJUSTED P/E RATIO, TIMES Share price divided by adjusted earnings per share before and after dilution.

AVERAGE CAPITAL EMPLOYED

Capital employed at the beginning of year plus capital employed at year-end divided by two.

AVERAGE EQUITY

Shareholders' equity at beginning of year plus equity at year-end divided by two.

AVERAGE TOTAL ASSETS

Total assets at beginning of the year plus total assets at year-end divided by two.

CAPITAL EMPLOYED

Equity plus interest-bearing liabilities.

EARNINGS PER SHARE

Profit after tax, divided by the average number of shares, before and after dilution.

EBITDA

Operating income before depreciation and amortization.

EQUITY TO ASSETS RATIO, PER CENT

Shareholders' equity divided by total assets. This ratio is a measure of the Group's financial strength.

ITEMS AFFECTING COMPARABILITY

Items of infrequent nature with significant effects, which are relevant for understanding the financial performance when comparing the current period with previous periods. Such items may include but are not limited to results from divestments of property, charges attributable to close-down or restructuring of major units or activities, significant write-downs of tangible and intangible assets and other major non-recurring costs or income.

NET DEBT

Interest-bearing liabilities and provisions less liquid funds and interest-bearing receivables.

NET DEBT/EBITDA, TIMES

Net debt divided by EBITDA. Net debt/EBITDA is a measure of the Group's financial strength.

NET DEBT TO EQUITY, TIMES

Net debt divided by equity. This ratio is a measure of the Group's financial strength.

OPERATING MARGIN, PER CENT

Operating profit divided by net sales. Operating margin is a measure of profitability. It measures how much of revenues remains after operating expenses.

P/E RATIO, TIMES

Share price divided by earnings per share.

RETURN ON CAPITAL EMPLOYED, PER CENT

Earnings after financial income divided by average capital employed. This measure of profitability shows the return of the Group's total balance sheet, less non interest-bearing debt. It is a measure independent of indebtedness. It complements the measure return on equity.

RETURN ON EQUITY, PER CENT

Earnings after tax divided by average equity. This measure measures the return on shareholders' funds for the year and is useful in comparisons of other investments with the same risk profile.

SHARE PRICE/EQUITY, PER CENT

Price per share divided by equity per share.

Parent company

INCOME STATEMENT IN SUMMARY	Jan–Sept	Jan–Sept
MSEK	2023	2022
Revenue	1.8	1.6
Gross profit	1.8	1.6
Administrative expenses	-6.4	-5.0
Operating profit/loss	-4.6	-3.4
Net financial items	3.9	2.2
Result	-0.7	-5.6
Income tax	0.0	0.0
Net result	-0.7	-5.6

STATEMENT OF COMPREHENSIVE INCOME MSEK	Jan–Sept 2023	Jan–Sept 2022
Net Result for the year	-0.7	-5.6
Other comprehensive income
Net financial items reported directly in consolidated equity:
Cash flow hedges	-	-
Income tax relating to components of other comprehensive income	-	-
Net result, Other comprehensive income	-	-
Total comprehensive income	-0.7	-5.6

BALANCE SHEET IN SUMMARY	30 Sept	31 Dec
MSEK	2023	2022
Assets
Financial assets	650.4	646.5
Current receivables	6.6	4.0
Cash and cash equivalents	0.5	0.1
Total Assets	657.5	650.6
Equity and liabilities
Equity	390.9	391.6
Non-current liabilities	182.7	180.0
Current liabilities	83.9	79.0
Total equity and liabilities	657.5	650.6