Christian Berner Tech Trade

Quarterly Report • Oct 21, 2021

Interim report quarter 3

Strong sales and profit increases in the third quarter, with continued good order intake

Good order intake in the second quarter had a positive effect on Christian Berner Tech Trade's third quarter results. Both sales and EBITA margins have increased in comparison to the third quarter of 2020. Strong market activity has resulted in good order intake during the third quarter. Raw material and component shortages continue to affect sales in certain areas.

Third quarter in brief

(July – September 2021)

• Order intake amounted to SEK 157.0 (133.4) million, an increase of 17.7 percent. For comparable units, this was a decrease of 6.1 percent.
• Net revenue for the third quarter amounted to SEK 204.7 (160.8) million, an increase of 27.3 percent. For comparable units, this was a increase of 5.5 percent.
• EBITA was SEK 19.6 (14.1) million. The EBITA margin was 9.6 (8.8) percent.
• Earnings per share, before and after dilution, amounted to SEK 0.94 (0.65).
• Cash flow from operating activities was SEK 11.5 (-0.1) million. Total cash flow for the period was SEK 1.7 (-7.6) million.

First nine months in brief

(January – September 2021)

• Order intake amounted to SEK 538.0 (461.6) million, an increase of 16.6 percent. For comparable units, this was a decrease of 3.1 percent.
• Net revenue for the first nine months of the year amounted to SEK 550.6 (500.0) million. The total increase compared to first nine months of 2020 was 10.1 percent. For comparable units, this was a decrease of 6.2 percent.

• EBITA was SEK 35.3 (32.7) million and the EBITA margin was 6.4 (6.5) percent.

• Earnings per share, before and after dilution, amounted to SEK 1.48 (1.29).

• Cash flow from operating activities was SEK 26.0 (49.8) million. Total cash flow for the period was SEK 22.8 (62.8) million.

Important events during the third quarter

• Marcus Wigren will take over as Managing director of subsidiary company Zander & Ingeström AB on January 10, 2022. Marcus previously held the position of CEO at Nilar International AB, which is listed on Nasdaq First North.
• CFO, Torbjörn Gustafsson, has decided to leave the company. He will continue in employment until the end of the year. Recruitment of a replacement has begun.

Important events after the third quarter

• On December 1, 2021, Lars Westlund will take up the position as interim CFO of Christian Berner Tech Trade.
• The Board announces that Bo Söderqvist will leave his position as CEO of Christian Berner Tech Trade. Bo Söderqvist will remain in his position until a successor is in place.

SEK thousands	July–Sept 2021	July–Sept 2020	Change %	Jan–Sept 2021	Jan–Sept 2020	Change %	Full-year 2020
Net revenue	204,650	160,758	27,3%	550,595	500,005	10,1%	695,169
Operating profit/loss	19,363	13,842	39,9%	34,727	31,385	10,6%	40,705
EBITA	19,571	14,149	38,3%	35,345	32,680	8,2%	42,167
Order intake	156,972	133,412	17,7%	538,019	461,558	16,6%	625,731
Profit per share	0,94	0,65	44,7%	1,48	1,29	14,3%	1,66
Cash flow for the period	1,727	-7,596	122,7%	22,783	62,822	-63,7%	23,720
EBITA-margin	9,6%	8,8%		6,4%	6,5%		6,1%
Return on equity (R12)	23,6%	23,2%		23,6%	23,2%		22,6%

Key figures

A strong result in this quarter with continued good order intake

We experienced strong sales and profits in this quarter, due to good order intake in the second quarter. As communicated in the last quarterly report, we saw good results in the second half of the year. Therefore, it's pleasing to report that the third quarter ended with an EBITA margin of 9.6 (8.8) percent and order intake remained good at SEK 157.0 (133.4) million.

Revenue increased by 27.3 percent in the third quarter. This was achieved despite continued shortages of raw materials and components, which are causing longer delivery times, particularly for major projects. During the third quarter, order intake remained strong, which means that we can probably also expect a good fourth quarter

Market developments

In Sweden, the EBITA margin was 12.4 (9.2) percent. Order intake for this quarter was good and we are seeing stable demand in the market. During this accounting period, we undertook several interesting projects, including heating assignments at Zander & Ingeström for our partners in China, as well as projects in the Netherlands. Process equipment are performing well, supplying packaging machines and packaging for E-commerce. It's pleasing that G.F Swedenborg, which was acquired during the second quarter, continues to deliver good results.

Denmark reached an EBITA margin of 5.3 (10.6) percent. Order intake was weaker over the course of the quarter, however we received a couple of orders from the processing and food industry for packaging machines and packaging. In the Materials Technology business area , we received orders for vibration-damping material for use in the construction industry.

In Norway, we achieved an EBITA margin of 8.6 (8.2) percent. Order intake for the quarter was weaker, although we are continuing to receive new orders for vibration-damping materials for the construction industry.

Finland experienced a weak quarter with an EBITA margin of 1.5 (13.0) percent. Sales of vibration-damping material for construction, in the Helsinki area, remained good, although we lack major machine investments in the processing industry.

"An EBITA margin of 9.6 percent"

In our view, underlying demand will remain stable and we expect continued improvement during the fourth quarter. The order intake we experienced during the third quarter should support this. There are, however, reservations to be made concerning longer lead and delivery times which, especially in Process equipment, Technical plastic and Vibration technology, that may mean some orders are moved into the first quarter of 2022.

Bo Söderqvist

CEO, Christian Berner Tech Trade AB

Christian Berner Tech Trade in brief

Revenue and results – third quarter

In the third quarter, the Group's net revenue amounted to SEK 204.7 (160.8) million, an increase of 27.3 percent. In comparative terms, this represents an increase of 5.5 percent. The Group's EBITA increased to SEK 19.6 (14.1) million, with an EBITA margin 9.6 (8.8) percent.

The increased sales figures were positively affected by the acquisition of the Empakk, Alfa Tec and Swedenborg companies, which were not part of the Group during the third quarter of 2020. Sales, for comparable units, also increased in comparison to the third quarter of last year, due to increased activity in the market and the company's strong order intake during the second quarter of this year. As in the second quarter, raw material and component shortages increased delivery times. This led to longer product delivery times and reduced the rate at which the company could complete projects.

Increased sales, with a strengthened gross margin, provided good profitability during the third quarter for the Group as a whole.

Activity in the Group's markets remains good and is reflected in strong order intake. In the third quarter of 2020, several

large orders for heating boilers majorly affected order intake. This is one reason why we see a decrease for comparable units in order intake for this year's third quarter. Overall, activity in the market for boilers is good, although large orders can have a significant effect on quarterly results.

It is also positive that the Group's gross margin is still higher than in previous years. This has been caused by changes to the business and product mix.

Markets

In the third quarter, Sweden's net revenue amounted to SEK 147.1 (107.5) million, an increase of 36.9 percent. EBITA amounted to 18.3 (9.9) million, which gave an EBITA margin of 12.4 (9.2) percent. Denmark's net revenue decreased to SEK 4.6 (6.2) million. Its EBITA was SEK 0.2 (0.7) million, which gave an EBITA margin of 5.3 (10.6) percent. Norway's net revenue for the third quarter was SEK 35.5 (17.6) million. Its EBITA closed at SEK 3.1 (1.4) million, with an EBITA margin of 8.6 (8.2) percent. Net revenue in Finland decreased to SEK 17.4 (29.5) million in the third quarter. Its EBITA amounted to SEK 0.3 (3.8) million, with an EBITA margin of 1.5 (13.0) percent.

Net revenue and EBITA

Revenue by market

Revenue and results – first nine months

For the first nine months of the year, the Group's net revenue amounted to SEK 550.6 (500.0) million. This was an improvement over the previous year of 10.1 percent. The Group's order intake for the first nine months of the year increased by 16.6 percent, compared with the same period last year.

EBITA was SEK 35.3 (32.7) million, an increase of 8.2 percent, which produced an EBITA margin of 6.4 (6.5) percent.

In the first nine months of the year, the parent company experienced a loss of SEK -6.0 (-7.5) million.

Markets

Sweden achieved a net revenue of SEK 387.7 (340.7) million during the first nine months of the year, which was an increase of 13.8 percent. EBITA amounted to SEK 35.2 (27.7) million, which gave a corresponding margin of 9.1 (8.1) percent.

Denmark has performed less well compared to last year. Net revenue was SEK 14.8 (19.4) million, a decrease of 24,0 percent. EBITA amounted to SEK 0.8 (1.6) million, with an EBITA margin of 5.2 (8.2) percent.

Norway's net revenue amounted to SEK 97.4 (69.2) million, a 40.7 percent increase compared to last year. Its EBITA was SEK 8.1 (6.0) million, with an EBITA margin of 8.3 (8.6) percent. Finland experienced reduced sales compared to last year and profits decreased due to a weak quarter for service operations in Lojo and in the Process & Environment Business Area . Net revenue amounted to SEK 50.8 (70.7) million, a decrease of 28.1 percent. Its EBITA amounted to SEK 0.6 (5.7) million, with an EBITA margin of 1.2 (8.1) percent.

Process & Environment

Christian Berner Tech Trade's Process & Environment business area comprises product areas focused on customers who primarily need processing equipment and whole systems.

Revenue and results – third quarter

Net revenue for the Process & Environment Business Area amounted to SEK 153.6 (107.3) million in the third quarter, with an EBITA of SEK 17.7 (9.9) million. The EBITA margin was 11.5 (9.3) percent. Since the third quarter of last year, the Business Area has absorbed with Empakk and Alfa Tec, which were acquired in the fourth quarter of 2020, and with Swedenborg, which was acquired in April 2021 and was included in the Group's accounts from May. These acquisitions have contributed to increased sales. Process & Environment is developing well in Sweden, where strong sales and an improved gross margin provide opportunities to improve the EBITA margin. Process equipment, Environmental & fluid technology and Heat technology product areas are performing well. In the third quarter, Norway's EBITA margin was slightly better than last year's, while Finland experienced a weak quarter.

Net revenue and EBITA

SEK thousands	July–Sept 2021	July–Sept 2020	Change %	Jan–Sept 2021	Jan–Sept 2020	Change %	Full-year 2020
Net revenue	153,645	107,307	43,2%	392,705	324,084	21,2%	470,729
EBITA	17,664	9,932	77,8%	29,340	23,422	25,3%	38,165
EBITA-margin, %	11,5%	9,3%		7,5%	7,2%		8,1%

Materials Technology

Christian Berner Tech Trade's Materials Technology business area comprises product areas focused on sales of various materials, including plastics and solutions in vibration and noise dampening.

Revenue and results – third quarter

Materials Technology achieved a net revenue of of SEK 51.0 (53.5) million in the third quarter, which is a decrease of 4.6 percent. EBITA amounted to SEK 4.2 (5.5) million, with an EBITA margin of 8.2 (10.3) percent. The Business Area's revenue decreased compared to the last year's third quarter. This was, partly, due to structural changes in Technical Plastics business, that took place in Sweden in the fourth quarter of 2020, and a weaker market for Technical Plastics in Finland. Vibration Technology in Finland and Norway experienced a very good quarter, while profits in Sweden failed to meet expections. The Materials Technology business area was also affected by longer delivery times in the third quarter, caused by raw material shortages. While this has not led to lost business, it has caused longer lead times - from order intake to revenue.

Net revenue and EBITA

SEK thousands	July–Sept 2021	July–Sept 2020	Change %	Jan–Sept 2021	Jan–Sept 2020	Change %	Full-year 2020
Net revenue	51,005	53,451	-4,6%	157,890	175,921	-10,2%	224,439
EBITA	4,166	5,531	-24,7%	15,322	17,575	-12,8%	21,586
EBITA-margin, %	8,2%	10,3%		9,7%	10,0%		9,6%

Other information

Important events during third quarter

Marcus Wigren will take over as Managing director of subsidiary company Zander & Ingeström AB on January 10, 2022. Marcus previously held the position of CEO at Nilar International AB, which is listed on Nasdaq First North.

CFO, Torbjörn Gustafsson, has decided to leave the company. He will continue in employment until the end of the year. Recruitment of a replacement has begun.

Financial position & cash flow

Cash flow from operating activities was SEK 11.5 (-0.1) million. Total cash flow for the period was SEK 1.7 (-7.6) million. Liquid assets, at the date of the balance sheet, were SEK 73.2 (89.1) million. The equity ratio, as of September 30, was 32.1 (33.6) percent

Investments

No significant investments were made during the reporting period.

Employees

At the end of the reporting period, the number of employees was 213 (174) , of whom 71 (51) were women and 142 (123) men.

Important events after the third quarter

On December 1, 2021, Lars Westlund will take up the position as interim CFO of Christian Berner Tech Trade.

The Board announces that Bo Söderqvist will leave his position as CEO of Christian Berner Tech Trade. Bo Söderqvist will remain in his position until a successor is in place.

Risks and uncertainties

The business is affected by a number of different factors, some of which are within the company's control, while others are not. For Christian Berner, its operations are affected by, among other things, business-related risks such as recruitment, project risks, competition and price pressure, as well as the ability to enter into framework agreements. Market-related risks include economic/inflation risks. Financial risks include exchange rate and interest rate risks. Christian Berner conducts business in four different countries, with a large number of customers in different industries and a large number of suppliers. These factors limit its business and financial risks. In addition to the risks and uncertainties described in Christian Berner's 2020 annual report, the Covid-19 pandemic that broke out at the beginning of 2020, has affected the company's business condition, personnel and operations.

The pandemic has not affected the financial results for the third quarter of 2021 negatively. The board and management closely monitor the development of the pandemic and update their assessment of its potential impact on the company's operations. The parent company is affected by the above risks and uncertainties in its function as owner of its subsidiaries.

Transactions with associated companies

No transactions between Christian Berner Tech Trade AB and its associated companies have taken place that significantly affected its status and results

Parent company

The parent company's primary purpose is to be responsible for business development, acquisitions, financing, governance and analysis. No sales activity takes place within the parent company. The net revenue of SEK 1.5 (1.6) million for the period relates to invoicing for internal Group services. EBITA was SEK -2.8 (-2.0) million. As of September 30, the parent company held cash amounting to SEK 34.3 (66.6) million.

Consolidated statement of comprehensive income

	3 months		9 months	Financial Year
SEK thousands	July–Sept 2021	July–Sept 2020	Jan–Sept 2021	Jan–Sept 2020	Whole Year 2020
Operating income
Net revenue	204,650	160,758	550,595	500,005	695,169
Other operating income	820	3,293	4,072	4,966	7,774
Total operating income	205,469	164,051	554,667	504,971	702,943
Goods for resale	-125,438	-101,726	-330,168	-314,097	-425,212
Other external costs	-14,279	-13,278	-42,203	-38,207	-63,800
Staff costs	-39,073	-29,340	-125,762	-103,821	-149,181
Depreciation of property, plant and equipment and amortisation of intangible assets	-7,315	-5,865	-21,806	-17,461	-24,045
Total operating expenses	-186,106	-150,209	-519,940	-473,586	-662,238
Operating profit/loss	19,363	13,842	34,727	31,385	40,705
Financial income	3,520	3,026	3,872	3,570	3,858
Financial expenses	-1,340	-1,228	-3,682	-3,514	-4,727
Net financial expenses	2,180	1,799	190	56	-869
Profit/loss before tax	21,543	15,641	34,917	31,441	39,836
Income tax	-3,901	-3,552	-7,160	-7,251	-8,720
Profit/loss for the period	17,642	12,089	27,757	24,189	31,116
Other comprehensive income
Items that can be transferred to profit and loss for the period
Translation differences	474	60	527	-420	988
Other comprehensive income for the perod, net after tax	474	60	527	-420	988
Total comprehensive income for the period	18,116	12,149	28,284	23,769	32,104
Earnings per share
Earnings per share before and after dilution (SEK)	0,94	0,65	1,48	1,29	1,66

Consolidated statement of financial position

SEK thousands	2021-09-30	2020-09-30	Whole year 2020
ASSETS
Intangible assets
Goodwill	192,955	146,224	179,528
Distribution rights	1,657	1,554	1,508
Trademarks	29,305	17,000	17,000
Internally developed software	1,396	1,657	1,755
Total intangible assets	225,313	166,435	199,792
Property, plant and equipment
Machinery and equipment	20,616	13,465	18,200
ROU assets, leasing	88,383	93,862	92,847
Total property, plant and equipment	108,999	107,327	111,047
Financial assets
Other non-current receivables	289	191	268
Total financial assets	289	191	268
Deferred tax assets	839	483	310
Total non-current assets	335,440	274,436	311,416
Current assets
Inventories
Inventories	63,045	62,313	60,500
Advance payments to suppliers	2,023	614	1,515
Total inventories, etc.	65,068	62,926	62,016
Current receivables
Trade receivables	108,114	87,172	75,127
Current tax assets	1,147	5,548	2,909
Other current receivables	4,246	2,153	6,533
Prepaid expenses and accrued income	5,715	5,655	5,711
Cash and cash equivalents	73,173	89,067	49,401
Total current receivables	192,396	189,594	139,682
Total current assets	257,463	252,520	201,698
TOTAL ASSETS	592,903	526,957	513,115

Consolidated statement of financial position

SEK thousands	2021-09-30	2020-09-30	Whole year 2020
EQUITY AND LIABILITIES
Equity
Share capital	625	625	625
Other capital contributions	41,228	41,228	41,228
Reserves	2,013	86	1,486
Retained earnings	146,503	135,301	132,816
Total equity	190,369	177,240	176,155
LIABILITIES
Non-current liabilities
Non-current leasing liability	64,724	80,934	72,654
Deferred tax liabilities	6,047	7,901	6,047
Other non-current liabilities	102	—	8,257
Provisions	1,335	1,335	1,335
Total non-current liabilities	72,208	90,170	88,292
Current liabilities
Liabilities to credit institutions	175,000	100,000	100,339
Current leasing liability	21,565	13,739	21,229
Advance payments from customers	-3,253	34,373	13,501
Trade payables	52,472	46,400	46,243
Other current liabilities	40,385	28,500	26,102
Accrued expenses and prepaid income	44,157	36,534	41,255
Total current liabilities	330,326	259,546	248,669
TOTAL EQUITY AND LIABILITIES	592,903	526,957	513,115

Consolidated statement of changes in equity in summary

SEK thousands	2021-09-30	2020-09-30	Whole year 2020
Opening equity for the period	176,155	153,471	153,471
Total comprehensive income for the period	28,284	23,769	32,104
Transactions with shareholders
Dividend	-14,070	—	-11,256
Buyback of own shares	—	—	—
Issue of common shares in business combinations	—	—	1,835
Closing equity for the period	190,369	177,240	176,155

Consolidated statement of cash flows

	3 months		9 months	Financial Year
SEK thousands	July–Sept 2021	July–Sept 2020	Jan–Sept 2021	Jan–Sept 2020	Whole Year 2020
Profit/loss before financial items	19,363	13,847	34,727	31,383	40,706
Adjustment for non-cash items	7,088	6,039	21,626	17,560	24,144
Interest paid and similar items	-1,342	-1,161	-3,682	-3,514	859
Interest received and similar items	3,521	454	3,872	1,065	-4,727
Income tax paid/refunded	-3,199	-3,404	-6,901	-14,293	-16,506
Cash flow from operating activities before changes in working capital	25,431	15,775	49,642	32,201	44,476
Increase/decrease in inventories	6,225	6,495	1,194	3,653	12,798
Increase/decrease in operating receivables	-18,461	-11,625	-22,276	-3,906	15,975
Increase/decrease in operating liabilities	-1,740	-10,733	-2,511	17,835	-10,275
Total change in working capital	-13,976	-15,863	-23,593	17,582	18,498
Cash flow from operating activities	11,455	-88	26,049	49,783	62,974
Acquisition of subsidiaries	8,257	-2,500	-28,584	-2,500	-34,403
Acquisition of property, plant and equipment	- 11,955	-360	- 17,296	-1,341	-4,851
Investments in intangible assets	—	-294	—	-364	-581
Sales of property, plant and equipment	—	—	—	—	—
Divestment of financial fixed assets	—	—	—	—	—
Acquisition of financial non-current assets	—	—	—	—	—
Cash flow from investing activities	- 3,698	-3,154	- 45,880	-4,205	-39,835
Loans raised, parent company	—	—	75,000	100,000	100,000
Repayment of loans	—	—	-339	-68,959	-68,974
Dividend	—	—	-14,070	—	-11,256
Buyback of own shares	—	—	—	—	—
Payment for finance leases	- 6,030	-4,354	- 17,977	-13,797	-19,189
Cash flow from financing activities	- 6,030	-4,354	42,614	17,244	581
Cash flow for the period	1,727	-7,596	22,783	62,822	23,720
Cash and cash equivalents at the start of the period	71,228	97,479	49,401	26,740	26,740
Exchange difference in cash and cash equivalents	217	-816	989	-495	-1,059
Cash and cash equivalents at end of the period	73,173	89,067	73,173	89,067	49,401

Parent company income statement

3 months			9 months
SEK thousands	July–Sept 2021	July–Sept 2020	Jan–Sept 2021	Jan–Sept 2020
Operating income
Net revenue	1,468	1,589	4,405	5,142
Total	1,468	1,589	4,405	5,142
Operating expenses
Purchased services	-249	-270	-1,063	-679
Other external costs	-819	-809	-3,298	-4,068
Staff costs	-3,177	-2,478	-10,005	-8,110
Total operating expenses	-4,245	-3,557	-14,366	-12,857
Operating profit/loss	-2,777	-1,968	-9,961	-7,715
Profit from participations in Group companies	—	—	—	—
Interest and similar income	3,518	—	3,776	629
Interest and similar expenses	-882	-801	-2,223	-2,477
Total profit/loss from financial items	2,636	-801	1,553	-1,848
Profit/loss before tax	-141	-2,769	-8,408	-9,563
Appropriations	—	—	—	—
Tax on profit for the period	740	609	2,443	2,105
Profit/loss for the period	599	-2,160	-5,965	-7,458

Parent company balance sheet

SEK thousands	2021-09-30	2020-09-30	2020-12-31
ASSETS
Financial assets
Shares in Group companies	316,409	227,604	280,370
Total financial assets	316,409	227,604	280,370
Total non-current assets	316,409	227,604	280,370
Current assets
Current receivables
Receivables from Group companies	286	2,330	55,291
Other receivables	430	249	677
Prepaid expenses	148	816	245
Current tax assets	3,535	2,226	—
Total current receivables	4,399	5,621	56,213
Cash and bank balances	34,321	66,648	14,711
Total current assets	38,720	72,269	70,924
TOTAL ASSETS	355,129	299,873	351,294
EQUITY AND LIABILITIES
Restricted equity
Share capital	625	625	625
Revaluation reserve	37,000	37,000	37,000
Statutory reserve Total restricted equity	1 37,626	1 37,626	1 37,626
Non-current liabilities
Liabilities to Group companies	107,000	104,265	94,843
Liabilities for acquired companies Total non-current liabilities	-5,965 101,035	-7,458 96,807	26,226 121,069
Total equity	138,661	134,433	158,695
LIABILITIES
Non-current liabilities
Liabilities to Group companies	840	840	840
Liabilities for acquired companies	—	—	8,256
Total non-current liabilities	840	840	9,096
Current liabilities
Liabilities to Group companies	25,671	60,221	72,775
Liabilities for acquired companies	10,757	—	—
Liabilities to credit institutions	175,000	100,000	100,000
Trade payables	524	909	1,920
Current tax liabilities	—	—	5,247
Other current liabilities	381	422	361
Accrued expenses and prepaid income	3,295	3,048	3,200
Total current liabilities	215,628	164,600	183,503
TOTAL EQUITY AND LIABILITIES	355,129	299,873	351,294

NOTE 1 Accounting principles

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplementary Accounting Rules for Groups. The parent company's quarterly report has been prepared in accordance with the Swedish Annual Accounts Act and Swedish Financial Reporting Recommendations RFR 2 Accounting for Legal Entities. Disclosures in accordance with IAS 34.16A appear not only in the financial statements and their accompanying notes but also in other parts of the interim report. The reporting of exchange rate differences has changed compared with the previous year. Exchange rate gains are now

reported as other operating income and exchange rate losses as other operating expenses. In previous years, the net sum has been reported as goods for resale in the income statement. The comparative items have been adjusted as a result of this change.

New standards coming into effect in 2021

No new accounting standards came into effect in 2021. For further information regarding Christian Berner's accounting principles, please refer to the company's 2020 annual report, Note 2 Accounting Principles and Note 2 in this report.

NOTE 2 Leasing

For the quarter, the following amounts are reported in the balance sheet relating to IFRS 16:

Assets	2021-09-30	2020-09-30
ROU assets, leasing	88,383	93,862
Total	88,383	93,862

Leasing liabilities	2021-09-30	2020-09-30
Short-term	21,565	13,739
Long-term	64,724	80,934
Total	86,289	94,673

In the income statement, The following amounts are reported with respect to IFRS 16:

	July–September		January–September
	2021	2020	2021	2020
Depreciation of ROU assets	-6,029	-4,821	-17,977	-13,797
Interest expenses	-450	-356	-1,388	-979
Total	-6,479	-5,177	-19,365	-14,776

NOTE 3 Preliminary acquisition calculations

AB GF Swedenborg Ingeniörsfirma

On 15 April, 2021, Christian Berner Tech Trade acquired AB GF Swedenborg Ingeniörsfirma and had access as of 3 May. AB GF Swedenborg Ingeniörsfirma markets and sells well-known pumping products and bursting discs. They also manufacture industrial dampers that are sold under their own brand. In 2020, the company's sales amounted to SEK 45.1 million, with an EBITDA of SEK 6.3 million. At the end of 2020, the company had 13 employees. The acquisition is expected to have a positive impact on Christian Berner Tech Trade's earnings per share in the current financial year. The purchase consideration amounted to SEK 25 million, on a debt-free basis, and is financed through available cash and newly raised loans. An additional purchase sum of no more than of SEK 6 million may be due, depending on the 2021-2022 result.

	SEK thousands
Purchase price	34,179
Net assets measured at fair value	9,570
Goodwill	12,305
Brand	12,305

Net assets consist of the values below (SEK thousands)	Fair value in the Group
Intangible assets excluding goodwill	0
Tangible fixed assets	686
Financial fixed asstes	0
Current assets	19,217
Provisions	0
Non-current liabilities	0
Current liabilties	-10,334
Net assets	9,570

Cash and cash equivalents in acquired operations amounted to SEK 5.6 million

AlfaTec Svenska AB

On 7 October 2020, Christian Berner Tech Trade signed an agreement on the acquisition of all shares in Alfa Tec Sweden AB (http://alfatec.se), a company that markets and sells Alfa Laval's products in thermal processes and fluid technology. In 2019, the company's sales amounted to SEK 32.2 million with an EBITDA of SEK 3.4 million. At the end of 2019, the company had five employees. The purchase consideration was estimated at SEK 12.2 million and was financed through available cash, treasury shares and loans raised. An additional purchase sum of no more than SEK 7.0 million may become payable, depending on the 2021-2022 result. The estimated purchase consideration includes the estimated outcome regarding the payment of an additional purchase sum.

	SEK thousands
Purchase price	12,189
Net assets measured at fair value	2,031
Goodwill	10,158

Net assets consist of the values below (SEK thousands)	Fair value in the Group
Intangible assets excluding goodwill	0
Tangible fixed assets	0
Financial fixed asstes	0
Current assets	5,553
Provisions	0
Non-current liabilities	0
Current liabilties	-3,522
Net assets	2,031

Cash and cash equivalents in acquired operations amounted to SEK 2.3 million

Empakk AS

On 1 October 2020, Christian Berner Tech Trade acquired Empakk AS (http://empakk.no), a company which markets and sells solutions for packaging, storage and transport of food in public and private operations in the Norwegian market. The company has its registered office in Fredrikstad and in 2019, revenue amounted to NOK 47.3 million with an EBITDA of NOK 4.8 million (EBITA SEK 4.3 million). At the end of 2019, the company had 15 employees. For the first half of 2020, the company's sales amounted to NOK 28.3 million, with an EBITDA of NOK 3.4 million (EBITA NOK 3.3 millions).

The purchase consideration was estimated at SEK 38.1 million and was financed through available cash and loans raised. An additional purchase sum of NOK 5.0 million may become payable, depending on the 2020-2021 result. The estimated purchase consideration includes the estimated outcome regarding the payment of an additional purchase sum.

	SEK thousands
Purchase price (SEK thousands)	38,083
Net assets measured at fair value	15,017
Goodwill	23,067

Net assets consist of the values below (SEK millions)	Fair value in the Group
Intangible assets excluding goodwill	0
Tangible fixed assets	1,861
Financial fixed asstes	84
Current assets	22,161
Provisions
Non-current liabilities	-331
Current liabilties	-8,758
Net assets	15,017

Cash and cash equivalents in acquired operations amounted to NOK 6.3 million (recalculated to 5,9 MSEK).

NOTE 4 Segment reporting

Segment revenue	July–Sept 2021	July–Sept 2020	Change %	Jan–Sept 2021	Jan–Sept 2020	Change %	Whole year 2020
Sweden	147,144	107,460	36,9%	387,635	340,676	13,8%	483,901
Norway	35,535	17,576	102,2%	97,362	69,195	40,7%	100,379
Finland	17,365	29,527	-41,2%	50,828	70,705	-28,1%	88,481
Denmark	4,606	6,195	-25,6%	14,770	19,429	-24,0%	22,409
Total	204,650	160,758	27,3%	550,595	500,005	10,1%	695,169
Sales between segments	6,722	3,532	90,3%	12,546	8,532	47,0%	11,239

Segment EBITA	July–Sept 2021	July–Sept 2020	Change %	Jan–Sept 2021	Jan–Sept 2020	Change %	Whole year 2020
Sweden	18,258	9,915	84,1%	35,160	27,740	26,7%	46,170
Norway	3,070	1,433	114,2%	8,113	5,971	35,9%	6,711
Finland	257	3,833	-93,3%	625	5,696	-89,0%	5,596
Denmark	245	656	-62,7%	764	1,591	-52,0%	1,274
Group as a whole	-2,259	-1,688	33,8%	-9,317	-8,318	12,0%	-17,584
Total	19,571	14,149	38,3%	35,345	32,680	8,2%	42,167
Amortisation of intangible assets	-208	-309	32,7%	-618	-1,297	52,4%	-1,460
Net financial items	2,180	1,799	21,2%	190	56	236,4%	-869
Profit/loss before tax	21,543	15,639	37,8%	34,917	31,439	11,1%	39,838

NOTE 5 Distribution of income

Christian Berner's revenue streams are reported according to Segment and Business Area, where Segments correspond to the market for revenue.

All Business Areas are represented in all Segments, see the table above, and the revenue comes in contract with categories, described in more detail below. The Process & Environment Business Area has a business model, which to a greater extent, falls into categories 1 and 2, while the Materials Technology Business Area has a larger share in category 3. However, all three categories are found in all Segments and Business Areas.

Christian Berner accrues revenue in three categories;

1. Commission Sales, where Christian Berner acts as a sales channel for suppliers by contacting end customers. Revenue comes from agreed commissions that Christian Berner receives from suppliers, which is usually received on delivery of products to end customers or thereafter. Christian Berner does not control the sales flow and is normally dependent on the supplier and customer agreeing and completing the transaction before we receive final payment.

2. Project Sales refers to revenue streams where Christian Berner has a number of performance commitments. This means that the agreement not only consists of a service or product but also covers a number of different parts. Revenue consists mainly of pre-agreed fees that are usually paid by advance invoicing and invoicing as milestones are reached, depending on the size of the project. These projects can run for long periods and, depending on their nature, income and costs are reported as various completion stages are reached. For larger projects, the resulting profit depends on the validity of calculations and on the successful completion of the project. Due to this, there exists a degree of uncertainty regarding the profitability of projects before completion.

3. Sales of Goods and Services. This category refers to goods and services sold separately. These may involve services, installations or products and spare parts from our warehouse, among other commodities. These are sold at rates agreed with customers, usually based on price lists. Revenues are reported for these goods and services at the time control is transferred to the customer. Invoicing usually occurs on delivery. In these cases, the greatest uncertainty occurs if customers are unable to pay for the services or products we have supplied.

July–September 2021

Net revenue, SEK thousands	Sweden	Norway	Finland	Denmark	Group as a whole
Process & Environment	119,567	24,355	6,358	3,365	153,645
Materials Technology	27,577	11,180	11,007	1,241	51,005
Total	147,144	35,535	17,365	4,606	204,650

July–September 2020 Net revenue, SEK thousands	Sweden	Norway	Finland	Denmark	Group as a whole
Process & Environment	76,958	11,174	16,419	2,756	107,307
Materials Technology	30,502	6,402	13,108	3,439	53,451
Total	107,460	17,576	29,527	6,195	160,758

January–September 2021 Net revenue, SEK thousands	Sweden	Norway	Finland	Denmark	Group as a whole
Process & Environment	296,174	69,325	17,341	9,865	392,705
Materials Technology	91,461	28,037	33,487	4,905	157,890
Total	387,635	97,362	50,828	14,770	550,595

January–September 2020 Net revenue, SEK thousands	Sweden	Norway	Finland	Denmark	Group as a whole
Process & Environment	244,798	35,985	33,114	10,187	324,084
Materials Technology	95,878	33,210	37,591	9,242	175,921
Total	340,676	69,195	70,705	19,429	500,005

Definitions

Christian Berner Tech Trade AB has reviewed its terminology for alternative key figures according to the European Securities and Markets Authority's (ESMA) new guidelines. No changes to the key figures were considered necessary as a result of this review.

Description of financial performance measurements not found in the IFRS regulations

Non-IFRS performance indicators	Description	Reason for use of indicator
Operating income	Revenue, including net revenue and other income	Operating income is a combination of how the Compa ny's various product areas and markets perform
Net revenue growth	Increase in the net revenue as a percentage of the total revenue of the previous year	Indicator of the company's growth relative to the pre vious period, which illustrates the company's trend and enables the underlying driving forces to be tracked
EBITA	Earnings before impairment of goodwill and impairment and amortisation of other intangible assets that arose in connection with business combinations and equiva lent transactions	As a manufacturing company, EBITA is an important indicator of the company's profitability before interest, taxes and impairments
EBITA-margin	EBITA as a percentage of net revenue	The EBITA margin illustrates the company's profit gene ration before interest, taxes and amortisation, relative to operating income. A performance indicator that is appropriate for companies such as Christian Berner
Operating profit/loss	Operating profit/loss before financial items and taxes	Operating profit/loss gives an overall picture of the company's profit generation in its operating activities.
Operating margin	Operating profit/loss before financial items and taxes, as a percentage of operating income	The operating margin is a traditional comparison indi cator that illustrates the company's profit generation relative to operating income
Net financial items	The difference between financial income and financial expenses	Net financial items shows the difference between financial income and financial expenses
Equity ratio	Equity as a percentage of total assets	A traditional indicator showing financial risk, expressed as the proportion of adjusted equity that is financed by the shareholders
Return on equity	Profit/loss after financial items as a percentage of average equity	Shows the return on the shareholders' invested capital, from the perspective of the shareholders
Cash flow for the period	Total of the cash flow from operating activities, cash flow from investing activities and cash flow from financing activities	The cash flow for the period is an indicator of how much cash and cash equivalents the company generates or loses in each period
Number of shares at the close of the period	The number of outstanding shares at the end of the reporting period	The number of shares in the company is important, as it forms the basis of the calculation of earnings per share
Average equity	The average of the total of opening equity for the period added to closing equity for the period	Average equity is a more conventional comparison indi cator and is used as a component in a number of other key performance indicators

Group – KPIs

SEK thousand	July–Sept 2021	July–Sept 2020	Change %	Jan–Sept 2021	Jan–Sept 2020	Change %	Whole year 2020
Net revenue	204,650	160,758	27,3%	550,595	500,005	10,1%	695,169
EBITA	19,571	14,149	38,3%	35,345	32,680	8,2%	42,167
Total assets	592,903	526,957	12,5%	592,903	526,957	12,5%	513,115
Equity	190,369	177,240	7,4%	190,369	177,240	7,4%	176,155
Revenue growth	27,3%	3,2%		10,1%	2,1%		-1,4%
Gross margin, %	39,0%	38,0%		40,5%	37,8%		39,5%
Equity ratio, %	32,1%	33,6%		32,1%	33,6%		34,3%
EBITA-margin, %	9,6%	8,8%		6,4%	6,5%		6,1%
Return on equity (R12)	23,6%	23,2%		23,6%	23,2%		22,6%

Assurance of the Board of Directors

The Board of Directors and the CEO warrant that this interim report for Christian Berner Tech Trade AB (publ), 556026-3666 provides a true and fair picture of the parent company's and the Group's operations, financial position and results, and describes the significant risks and uncertainties of the parent company and the companies included in the Group.

Mölnlycke, 21 October 2021

Joachim Berner Chairman of the Board

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Bo Söderqvist CEO

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Bertil Persson Board Member Carl Adam Rosenblad Board Member

Stina Wollenius Board Member

Lars Gatenbeck Board Member

Kerstin Gillsbro Board Member

Sara Mattsson Board Member

Sandra Fundin Employee Representative Robert Sätterberg Employee Representative

Review report

To the Board of Directors of Christian Berner Tech Trade AB (publ) Corp. id. 556026-3666

Introduction

We have reviewed the condensed interim financial information (interim report) of Christian Berner Tech Trade AB (publ) as of 30 September 2021 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than

an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion

Conclusion

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

Göteborg 21 October 2021 KPMG AB

Mathias Arvidsson Authorized Public Accountant The information in this report is published in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted through the following contact people for publication on 21 October 2021, at 15:00.

Reporting dates

25 February 2022 Year-End Report 2021

28 April 2022 Annual General Meeting 2022 Interim report for the first quarter 2022

Contact details

Bo Söderqvist, CEO Christian Berner Tech Trade AB +46 (0) 70-18 66 910 E-mail: bo.soderqvist@christianberner.com

Torbjörn Gustafsson, CFO Christian Berner Tech Trade AB +46 (0) 70-18 66 986 E-mail: torbjorn.gustafsson@christianberner.com