Christian Berner Tech Trade

Quarterly Report • Jul 21, 2023

Interim report Q2

Growth and margin improvement trends continue in the second quarter

The companies in Christian Berner Tech Trade are showing strong development, and customer confidence is evident in increased order intake, increased turnover and improved results. EBITA increased in the second quarter by more than 50 percent, compared to the previous year, to SEK 17.5 million, and with SEK 32 million for the half-year, an improvement of more than 80 percent.

Second quarter in brief 2023

• Order intake totaled SEK 284.8 (261.8) million, an increase of 8.8 percent.
• Net revenue for the second quarter was SEK 245.9 (213.8) million, an increase of 15.0 percent, of which organic growth amounts to 14.9 percent.
• EBITA was SEK 17.5 (11.6) million, an increase of 51.1 percent. The EBITA margin was 7.1 (5.4) percent.
• Earnings per share before and after dilution were SEK 0.60 (0.38).
• Cash flow from operating activities was SEK 3.3 (-18.8) million. Total cash flow for the period was SEK -11.0 (-41.1) million.

Summary of the first half of the year

• Order intake totaled SEK 522.5 (476.8) million, an increase of percent.
• Net revenue for the first quarter was SEK 484.2 (395.1) million, an increase of 22.6 percent, of which organic growth amounts to 22.5 percent.
• EBITA was SEK 31.8 (17.8) million, an increase of 79.4 percent. The EBITA margin was 6.5 (4.5) percent.
• Earnings per share before and after dilution were SEK 1.07 (0.55).
• Cash flow from operating activities was SEK 18.0 (-15.6) million. Total cash flow for the period was SEK -5.0 (-45.1) million.

Significant events during the second quarter

• The company held its annual general meeting on April 27, 2023. The AGM decided on a dividend of SEK 0.60 per share, totaling SEK 11.3 million to the shareholders, with SEK 0.30 being paid during the quarter and the remainder expected to be paid in the fourth quarter.
• Managing director of the Norwegian subsidiary Christian Berner AS, Even Magnus Moholdt, took office on April 17.
• During the quarter, work to implement a new business system in parts of the Technology & Distribution business area was completed. Three of the group's operating companies started using the new system during the period.
• During the period, Zander & Ingeström signed an agreement with NCC Sweden for the delivery of equipment for the Käppala Association's wastewater treatment plant. The project will run for 2.5 years.

Significant events after the end of the reporting period

• There were no significant events after the end of the reporting period.

Financial summary

SEK thousand	Apr–Jun 2023	Apr–Jun 2022	Change %	Jan–Jun 2023	Jan–Jun 2022	Change %	2022/23 R12	Full year 2022	Change %
Orders	284,792	261,783	8.8	522,542	476,785	9.6	961,441	915,684	5.0
Net revenue	245,901	213,759	15.0	484,211	395,056	22.6	931,155	842,000	10.6
EBITA	17,526	11,596	51.1	31,850	17,754	79.4	54,604	40,508	34.8
EBITA margin, %	7.1	5.4		6.5	4.5		5.9	4.8
Operating profit/loss	17,299	11,359	52.2	31,384	17,293	81.5	53,661	39,570	35.6
Earnings per share	0.60	0.38	56.9	1.07	0.55	93.7	1.82	1.30	40.0
Cash flow for the period	-11,027	-41,140	N/A	-4,973	-45,057	N/A	16,015	-24,069	N/A
Return on equity (R12), %	29.4	19.7		26.2	15.1		24.7	16.4
Net interest-bearing debt, excluding IFRS 16	123,493	139,795	11.7	123,493	139,795	11.7	N/A	118,134	N/A
Net interest-bearing debt, including IFRS 16	221,147	213,103	-3.8	221,147	213,103	-3.8	N/A	188,205	N/A

Attractive businesses within sustainable areas

The second quarter continues to show a trend towards higher earnings for the Group and more consistent development. EBITA increased by more than 50 percent compared to the previous year. The Energy & Environment business area, in particular had a very strong quarter, with a fivefold increase in EBITA. During the quarter, we won several important business deals that support the development towards a more sustainable society.

The Group achieved EBITA of SEK 17.5 million in the second quarter. This means a 1.7 percentage point increase in the margin compared to the previous year, to 7.1 percent. The Group's activities cover many different areas and provide excellent opportunities to counteract fluctuations in the various underlying markets. We also see that order intake remains at high levels. Despite strong comparative figures, order intake increased by 9 percent in the quarter, compared to the same period last year. As order intake again exceeds sales, order books are growing.

Businesses that support responsible use of our resources

Our activities are at the heart of the transition to a more sustainable society. For example, during the quarter the subsidiary Zander & Ingeström received an important order for equipment for the Käppala Association's wastewater treatment.

The order is a great example of the Group's work, where our experienced teams can put together complex, customized solutions that meet high standards. In this case, not only does it meet more stringent wastewater treatment emission requirements and an increasing load in the form of a growing population, but it also does so with lower energy consumption. We are pleased to make a concrete contribution to a cleaner Baltic Sea.

During the quarter, the subsidiary Zander & Ingeström also celebrated its 125-year anniversary together with customers and suppliers, the subsidiary Bullerbekämparen celebrated 50 years, and later this year, our Finnish subsidiary Christian Berner Oy will celebrate 100 years. We are proud to build on generations of engineering expertise and take on the challenges facing our societies.

"We are pleased to make a concrete contribution to a cleaner Baltic Sea."

Continued efforts to improve efficiency

Three of the companies in the Technology & Distribution business area started using a new business system during the quarter, which temporarily used some resources and affected the business area at the beginning of the quarter. We are now looking forward to the improved efficiency made possible with a more modern business support system, through reduced internal administration and increased transparency.

In short, we are finishing up a first half of the year in which we are starting to see the effects of our concerted efforts over the past year to unleash the power in our competent employees through increased decentralization. We are proud, but not satisfied. We know that we can do more.

Caroline Reuterskiöld

CEO, Christian Berner Tech Trade AB

Christian Berner Tech Trade in brief

Group development in the second quarter

Net revenue

Net revenue for the second quarter was SEK 245.9 (213.8) million, an increase of SEK 32.1 million, where organic growth totaled SEK 31.7 million. The second quarter showed a high level of activity among customers, along with excellent delivery levels. In particular, Energy & Environment contributed with several attractive business transactions of both a recurring and a one-off nature.

SEK million
	Currency effect, foreign
Apr–Jun 2022	subsi diaries	Acquired growth	Organic growth	Total growth	Apr–Jun 2023
213.8	0.1%	–	14.9%	15.0%	245.9

EBITA

Net revenue

The Group's EBITA for the second quarter was SEK 17.5 (11.6) million, an improvement of SEK 5.9 million. With good business deals, especially in Energy & Environment, the quarter's increased revenues have generated a high contribution, in line

million in decommissioning costs for systems were expensed. Depreciation and investments

with the previous year, and have thus grown the EBITA margin despite a time of increased costs. During the quarter, SEK 1.5

Depreciation was SEK -8.2 (-7.1) million in the second quarter. Depreciation primarily consists of depreciation of right-of-use assets. During the quarter, the Group invested in tangilble fixed assets of SEK -0.7 (-0.4) million.

Investments in intangible assets amounted SEK -2.1 (-2.1) million. Investments in intangible assets consist of the replacement and development of business systems.

Net financial items

Consolidated net financial items for the second quarter were SEK -2.9 (-2.6) million. The increase is attributable to increased interest expenses.

Tax

EBITA

Consolidated tax expenses for the first quarter were SEK -3.1 (-1.6) million. The effective tax rate for the quarter was 21.8 percent (18.1 percent).

Christian Berner Tech Trade in brief, continued

Development of the Group January 1 – June 30 Net revenue

Net revenue for the first six months was SEK 484.2 (395.1) million, an increase of SEK 89.1 million, where organic growth totaled SEK 88.9 million. The Energy & Environment business area grew strongly by delivering existing order backlogs together with good development in sales with shorter lead times.

SEK million

Jan–Jun 2022	Currency effect, foreign subsi diaries	Acquired growth	Organic growth	Total growth	Jan–Jun 2023
395.1	0.1%	–	22.5%	22.6%	484.2

EBITA

The Group's EBITA for the first six months was SEK 31.8 (17.8) million, an improvement of SEK 14.0 million. Additional costs from the development of organizations, inflationary pressures on the cost side, and increased marketing activities compared to the previous year when Covid dampened activity has been more than offset by increased earnings from revenue growth. This is reflected in the higher EBITA margin. During the first half of the year, SEK 2.0 million in decommissioning costs for systems were expensed, whereof SEK 0.5 million during the first quarter.

Depreciation and investments

Depreciation was SEK -16.8 (-14.6) million in the first six months. Depreciation primarily consists of depreciation of right-of-use assets. During the first quarter, SEK 0.5 million was added through accelerated depreciation of discontinued software. During the six-month period, the Group invested in property, plant and equipment in the amount of SEK -1.8 (-1.5) million. Investments in intangible assets totaled SEK -5.0 (-2.1) million. Investments in intangible assets consist of the replacement and development of business systems.

Net financial items

Consolidated net financial items for the first six months totaled SEK -5.6 (-3.8) million. The increase is attributable to increased interest expenses.

Tax

Consolidated tax expenses for the first six months were SEK -5.6 (-3.0) million. The effective tax rate for the quarter was 21.8 percent (22.7 percent).

Technology & Distribution

The Technology & Distribution business area gathers distribution activities and own products in water treatment, packaging equipment, vibration damping, technical plastics and process technology. The business area helps customers in industry and the public sector to reduce resource consumption, improve their environmental footprint or streamline their own operations. The business area comprises the four Nordic Christian Berner companies and Empakk AS.

Development of the business area in the second quarter Net revenue

The business area's net revenue for the second quarter was SEK 130.9 (134.9) million, a contraction of SEK 4.0 million. The business area experienced a temporary decline in deliveries after a strong start to the year. The business system change and bringing forward some deliveries to the previous quarter have affected the quarter. Order intake has continued to be good and improved levels are expected in future periods.

SEK million Apr–Jun 2022	Currency effect, foreign subsi diaries	Acquired growth	Organic growth	Total growth	Apr–Jun 2023
134.9	0.1%	–	-3.1%	-3.0%	130.9

EBITA

The business area's EBITA in the second quarter was SEK 1.8 (9.4) million, a decrease of SEK 7.6 million compared to the corresponding period last year. A product and business mix with lower than normal profitability in the quarter explains the decline in earnings, together with the lower revenues. Variations in the mix of business within the business area may affect individual quarters.

Development of the business area, January 1 – June 30 Net revenue

The business area's net revenue for the first six months was SEK 275.8 (249.7) million, an increase of SEK 26.1 million, whereof SEK 25.7 million was organic. The business area continued the strong development shown in the second half of 2022 in the beginning of 2023, with somewhat muted progress in the second quarter. Overall, the first half of the year shows a good level of customer deliveries, with strong development compared to the same period last year.

SEK million

Jan–Jun 2022	Currency effect, foreign subsi diaries	Acquired growth	Organic growth	Total growth	Jan–Jun 2023
249.7	0.2%	–	10.3%	10.5%	275.8

EBITA

The business area's EBITA in the first six months was SEK 14.6 (12.7) million, an increase of SEK 1.9 million compared to previous year. The increased deliveries to customers have led to improvements in earnings; the mix of deliveries has to some extent put pressure on earnings, together with some temporary loss of efficiency during business system changes in three operational companies.

SEK thousand	Apr–Jun 2023	Apr–Jun 2022	Change %	Jan–Jun 2023	Jan–Jun 2022	Change %	2022/23 R12	Full year 2022	Change %
Net revenue	130,867	134,851	-3.0	275,760	249,656	10.5	554,040	527,936	4.9
EBITA	1,815	9,365	-80.6	14,625	12,734	14.9	32,462	30,571	6.2
EBITA margin, %	1.4	6.9	–	5.3	5.1	–	5.8	5.7	–

Energy & Environment

The Energy & Environment business area includes the Group's pump businesses and equipment targeting the energy and process industries. The business area increases the sustainability of the energy, process and manufacturing industry through reduced emissions, reduced energy losses and/or improved working environment. The business area comprises Zander & Ingeström, Swedenborg and Bullerbekämparen.

Development of the business area in the second quarter Net revenue

The business area's net revenue for the first quarter was SEK 115.3 (80.6) million, an increase of SEK 34.7 million, with the total increase constituting organic growth. During the quarter, deliveries and customer assignments followed the positive trend established by the business area over the previous year. Compared to the second quarter of the previous year, sales increased through efficient management of the larger order backlog, a positive mix among the product and customer contracts, and the efficient way in which the companies met increased demand for new technical solutions.

SEK million

Apr–Jun 2022	Currency effect, foreign subsi diaries	Acquired growth	Organic growth	Total growth	Apr–Jun 2023
80.6	–	–	43.1%	43.1%	115.3

EBITA

The business area's EBITA in the second quarter was SEK 20.7 (4.2) million, an increase of SEK 16.5 million compared to the previous year. The increased sales, together with a favorable product mix, have resulted in good margins. The business area participated in marketing activities and celebrated Zander & Ingeström's 125th anniversary with customers, staff and suppliers.

Development of the business area, January 1 – June 30 Net revenue

The business area's net revenue for the first six months was SEK 209.0 (148.2) million, an increase of SEK 60.8 million, with the total increase constituting organic growth. During the quarter, deliveries and customer assignments followed the positive trend established by the business area over the previous year. In addition, a high order intake vouch for continued good development.

SEK million
Jan–Jun 2022	Currency effect, foreign subsi diaries	Acquired growth	Organic growth	Total growth	Jan–Jun 2023
148.2	–	–	41.0%	41.0%	209.0

EBITA

The business area's EBITA in the first six months was SEK 30.7 (10.0) million, an increase of SEK 20.7 million compared to the previous year. Increased sales have resulted in good margins, despite higher cost levels caused by growing organizations and increased marketing activities.

SEK thousand	Apr–Jun 2023	Apr–Jun 2022	Change %	Jan–Jun 2023	Jan–Jun 2022	Change %	2022/23 R12	Full year 2022	Change %
Net revenue	115,269	80,556	43.1	208,975	148,190	41.0	381,333	320,548	19.0
EBITA	20,725	4,154	398.8	30,714	10,041	205.9	40,584	19,911	103.8
EBITA margin, %	17.7	5.1	–	14.5	6.6	–	10.5	6.1	–

Other information

Other financial information

During the second quarter, the Group continued to work with system changes, development and adjustments. Five companies in the Group implemented the new ERP system in the second quarter.

During the second quarter, three subsidiaries extended their current leases. The extension means that interest-bearing lease liabilities have increased to SEK 97.7 million (SEK 70.1 million as of December 31, 2022).

Cash flow, investments and financial position

At June 30, the Group had SEK 51.5 million (56.9 million at December 31, 2022) in cash and cash equivalents. The cash flow from operating activities during the second quarter was SEK 3.3 (-18.8) million. In the second quarter, investments of SEK -3.9 (-2.5) million were made, primarily in the development of the new IT environment.

The cash flow from operating activities for the first six months was SEK 18.0 (-15.6) million. During the first half of the year, investments of SEK -6.8 million (-3.5) were made. During the first half of the year, payments were made for additional purchase considerations of SEK - (15.1) million and dividends of SEK 5.6 (14.1) million.

Employees

At the end of the period, there were 219 employees (220 at December 31, 2022), of which 52 (51) were women and 167 (169) were men.

Significant events during the second quarter

Even Magnus Moholdt started as the new managing director of the subsidiary Christian Berner AS on April 17, 2023.

Risks and risk management

Operations are affected by a wide range of factors, some of which are within the company's control and others outside. Market related risks include cyclical risks. Financial risks include exchange rate risks and interest rate risks. Christian Berner Tech Trade operates in four different countries, with a large number of customers in different industries and a large number of suppliers, which limits the business and financial risks. The business environment has improved with regard to the previous problems involving component shortages and long delivery times in the supply chain. Such issues cannot be ruled out for future business, but clear improvements have been seen during the first six months of the year. These risks are carefully monitored, and communication with customers is ongoing to mitigate the effects of these risks and uncertainties. Another uncertainty is, of course, the war in Ukraine and its impact on our operations. The Group has no operations in the countries directly impacted, but is affected by price changes and may also be affected by a general economic downturn.

The Board of Directors and management closely monitor developments and update their assessment of the potential impact of the war on the company's operations based on how the situation develops. Furthermore, cyber security is high on the agenda, and the company is constantly working to improve security against potential intrusions.

Price increases in goods have, to some extent, slowed in recent months. Continued price increases on energy and fuel would entail a short-term risk for the Christian Berner Group, before the new cost levels could be fully priced into business. The Group is actively working on pricing, both when there are cost increases, but also in order to be an attractive supplier when costs are adjusted downwards.

If inflation takes hold and remains high for an extended period of time, it will entail even higher interest expenses for borrowing, which primarily affects the parent company. The liquidity and financing risk thereby increases but is deemed to remain at an acceptable level, taking probable interest rate hikes into account.

For the subsidiaries, the effect of interest rate hikes is limited. On the other hand, continued high inflation may entail a general economic downturn, which may ultimately affect the availability of business for the subsidiaries. However, the assessment is that the areas the Group mainly directs its offerings at are in need of solutions, deliveries and products regardless of economic fluctuations. Exposure to the residential building sector, which has already been affected by interest rate increases, is limited.

Affiliated-party transactions

Transactions in the amount of SEK 0.4 (0.4) million took place in the first six months between Christian Berner Tech Trade AB's subsidiary AB GF Swedenborg AB and PSW Fastighets AB, which is owned by a board member of AB GF Swedenborg, regarding the lease of premises for AB GF Swedenborg. The service was purchased at normal business terms on a commercial basis. The Group has entered into a lease agreement for offices in Stockholm from September 1, 2022, where a smaller part of the premises is sublet to Gårdaverken AB. The Group also leases art, located in a subsidiary's office, from Gårdaverken AB for a small sum.

Other information, continued

Parent company

The main functions of the parent company Christian Berner are to work with business development, acquisitions, financing, governance, analysis and communication. At the end of June, there were 2 employees (2 at December 31, 2022). The parent company's revenue, which consists of intra-Group invoicing of services, amounted to SEK 2.7 (2.0) million in the second quarter. During the second quarter, operating expenses totaled SEK -6.4 (-5.0) million, which was related to personnel expenses and current external costs. Operating profit/loss for the second quarter amounted to SEK -3.7 (-3.1) million, financial items amounted to -2.5 (-2.4), and profit/loss and comprehensive income for the period was SEK -5.0 (-4.4) million.

For the first half-year, the parent company's turnover totaled SEK 5.6 million (3.6), and operating expenses totaled SEK -13.1 (-10.7) million. The operating profit/loss thus totaled SEK -7.5 (-7.1) million. Financial items totaled SEK -4.9 million (-3.1), and profit/loss and comprehensive income for the period totaled SEK -9.9 million (-8.1).

During the quarter, two dormant companies were conveyed to CBBS AB. A merger was initiated by the dormant companies.

Pledged assets

The parent company has pledged shares in subsidiaries as collateral. Pledged shares total SEK 143.5 (143.5) million in the parent company. For the Group, pledged assets total SEK 203.3 million (203.5 million at December 31, 2022).

The share and owners Warrants

At the annual general meeting in April, 2022, it was decided to issue a maximum of 400,000 warrants to senior staff in the group over the course of 2022/2025. The warrants have been offered at a market rate of SEK 2.12 per warrant, according to Black & Scholes. The subscription price for the warrants is SEK 34.03. Subscription for the shares may take place during the period. .09/01/2025–09/30/2025. The program currently does not give rise to any dilution effect. The number of outstanding warrants is 275,000 as of June 30, 2023.

Authorization of the Board of Directors

The annual general meeting in April 2023 authorized the Board of Directors to decide on a new issue of up to 1,875,400 shares, corresponding to a dilution of 10%, with or without preferential rights for the company's shareholders. Furthermore, the Board of Directors was authorized, during the period until the next annual general meeting, to decide on the repurchase and

transfer of own shares for a maximum of 10 percent of all outstanding shares.

Dividend

At the annual general meeting on April 27, 2023, CBTT decided to distribute 60 öre per share, pursuant to the Board's proposal. The dividend will be paid in two installments, with the first payment made on 05/05/2023 and the second payment to be made in the fourth quarter. The dividend amounts to a total of SEK 11.3 million and corresponds to 46.2 percent of the profit after tax. The policy of distributing 30–50 percent of profit after tax over the long term remains unchanged.

Owners

The ten largest shareholders at the June 30 are shown in the table below. As of the end of June 2023, the company had 2,702 shareholders, and the closing price of the share on that date was SEK 24.90.

Shares

The number of outstanding shares at the end of the period amounted to 18,759,398 divided into 1,250,000 A shares and 17,509,398 B shares. A shares have a voting value of 10 per share, while B shares have a value of 1 per share. The share is listed on Nasdaq Stockholm's main list SmallCap with the ticker "CBTT".

Name	Number of shares	Share of capital, %	Share of votes, %
Gårdaverken	4,462,383	23.8	52.4
Cervantes Capital	2,108,149	11.2	7.0
Concejo AB	1,932,323	10.3	6.4
Isolde Stensdotter Berner	1,630,572	8.7	5.4
Lannebo Fonder	970,558	5.2	3.2
Ksenia Berner	796,920	4.2	2.7
Unionen	745,000	4.0	2.5
Avanza Pension	484,756	2.6	1.6
Nordnet Pensionsförsäkringar	471,570	2.5	1.6
Mikael Gunnarsson	358,000	1.9	1.2
Others	4,799,167	25.6	16.0
Total	18,759,398	100.0	100.0

Consolidated statement of comprehensive income

	3 months		6 months	Fiscal year
SEK thousand	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Full year 2022
Operating income
Net revenue	245,901	213,759	484,211	395,056	842,000
Other operating income	1,311	324	2,480	1,713	2,766
Total operating income	247,212	214,083	486,691	396,769	844,766
Goods for resale	-147,568	-128,855	-291,835	-235,456	-518,655
Other external costs	-19,704	-19,329	-42,259	-34,841	-73,853
Personnel costs	-53,866	-46,702	-102,635	-93,864	-182,548
Depreciation of property, plant and equipment and amortization of intangible assets1)	-8,168	-7,134	-16,831	-14,583	-29,268
Other operating expenses	-607	-704	-1,747	-732	-872
Total operating expenses	-229,913	-202,724	-455,307	-379,476	-805,196
Operating profit/loss	17,299	11,359	31,384	17,293	39,570
Financial income	186	-87	257	43	246
Financial expenses	-3,060	-2,495	-5,873	-3,882	-8,024
Net financial items	-2,874	-2,582	-5,616	-3,839	-7,778
Profit/loss before tax	14,425	8,777	25,768	13,454	31,792
Income tax	-3,146	-1,590	-5,617	-3,050	-7,449
Profit/loss for the period	11,279	7,187	20,151	10,404	24,343
Other comprehensive income
Items that may later be transferred to profit and loss for the period
Translation differences for the year on translation of foreign subsidiaries	1,737	-2,074	-1,394	1,144	3,385
Other comprehensive income for the year	1,737	-2,074	-1,394	1,144	3,385
Total comprehensive income for the year	13,016	5,113	18,757	11,548	27,728
Earnings per share
Earnings per share before and after dilution (SEK)	0.60	0.38	1.07	0.55	1.30

1) The item depreciation/amortization consists of the following subitems:

	3 months		6 months		Fiscal year
SEK thousand	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Full year 2022
Depreciation of property, plant and equipment	-1,296	-1,166	-3,062	-2,291	-4,687
Amortization of intangible assets	-227	-237	-466	-461	-938
Depreciation of right-of-use assets	-6,645	-5,731	-13,303	-11,831	-23,643
Total depreciation/amortization	-8,168	-7,134	-16,831	-14,583	-29,268

Condensed consolidated statement of financial position

SEK thousand	06/30/2023	06/30/2022	12/31/2022
ASSETS
Fixed assets
Intangible assets
Goodwill	197,148	197,693	198,417
Distribution rights	1,040	1,388	1,211
Trademark	32,497	32,497	32,497
Internally developed software	896	1,453	1,169
Intangible assets in progress	13,039	1,768	8,059
Total intangible assets	244,620	234,799	241,353
Machinery and equipment	17,853	19,704	20,889
Right-of-use assets	98,817	74,891	71,920
Financial assets
Other noncurrent receivables	987	300	941
Deferred tax assets	483	500	372
Total financial assets	1,470	800	1,313
Total noncurrent assets	362,760	330,194	335,475
Current assets
Inventories	86,347	110,588	77,658
Advance payments to suppliers	2,572	7,695	3,267
Contract assets	5,345	–	10,269
Tax receivables	17	9,464	138
Trade receivables	154,397	113,903	145,474
Prepaid expenses and accrued income	4,615	5,278	5,525
Other receivables	5,120	3,564	3,029
Cash and cash equivalents	51,507	35,205	56,866
Total current assets	309,920	285,697	302,226
TOTAL ASSETS	672,680	615,891	637,701

Condensed consolidated statement of financial position

SEK thousand	06/30/2023	06/30/2022	12/31/2022
EQUITY AND LIABILITIES
Equity
- attributable to the parent company's shareholders	208,569	184,305	201,068
- attributable to noncontrolling interests	–	–	–
Total equity	208,569	184,305	201,068
LIABILITIES
Noncurrent liabilities
Leasing liability	74,608	53,119	49,006
Other noncurrent liabilities	–	100	95
Other provisions	2,216	1,203	1,216
Deferred tax liabilities	8,034	8,465	8,089
Total noncurrent liabilities	84,858	62,887	58,406
Current liabilities
Borrowings to credit institutions	175,000	175,000	175,000
Short-term leasing liability	23,046	20,189	21,065
Advance payments from customers	12,548	22,808	15,737
Trade payables	61,105	63,424	77,351
Contract liabilities	14,292	–	5,138
Current tax liabilities	3,310	–	3,618
Other liabilities	34,210	27,851	30,882
Accrued expenses and prepaid income	55,742	59,427	49,436
Total current liabilities	379,253	368,699	378,227
TOTAL EQUITY AND LIABILITIES	672,680	615,891	637,701

Condensed consolidated statement of changes in equity

SEK thousand	06/30/2023	06/30/2022	12/31/2022
Beginning of period	201,068	186,827	186,827
Comprehensive income for the period	18,757	11,548	27,728
Transactions with shareholders
Dividend	-11,256	-14,070	-14,070
Option premiums received	–	–	583
End of period	208,569	184,305	201,068

Consolidated statement of cash flows

	3 months		6 months		Fiscal year
SEK thousand	Apr–Jun 2023	Apr–Jun 2022	Jan–Jun 2023	Jan–Jun 2022	Full year 2022
Profit/loss before tax	14,425	8,777	25,768	13,454	31,792
Adjustment for noncash items	8,366	8,420	17,432	16,037	28,857
Income tax paid	-2,552	-5,708	-5,904	-12,811	-4,263
Cash flow from operating activities before changes in working capital	20,239	11,489	37,296	16,680	56,386
Changes to:
Inventories	2,771	-19,145	-7,781	-31,790	6,428
Operating receivables	-12,597	-10,410	-5,142	-19,174	-55,956
Operating liabilities	-7,159	-749	-6,383	18,664	18,198
Total change in working capital	-16,985	-30,304	-19,306	-32,300	-31,330
Cash flow from operating activities	3,254	-18,815	17,990	-15,620	25,056
Investments in property, plant and equipment	-716	-447	-1,770	-1,453	-5,124
Sales of property, plant and equipment	318	–	2,101	–	2,053
Investments in intangible assets	-2,137	-2,078	-4,980	-2,078	-8,369
Acquisition of financial assets	-	-	-36	-	-630
Cash flow from investing activities	-2,535	-2,525	-4,685	-3,531	-12,070
Option premiums	–	–	–	–	583
Amortization of lease liabilities	-6,118	-5,730	-12,650	-11,836	-23,568
Dividend paid	-5,628	-14,070	-5,628	-14,070	-14,070
Cash flow from financing activities	-11,746	-19,800	-18,278	-25,906	-37,055
Cash flow for the period	-11,027	-41,140	-4,973	-45,057	-24,069
Cash and cash equivalents, beginning of period	62,137	77,005	56,866	79,821	79,821
Effect of exchange rate changes on cash	397	-660	-386	441	1,114
Cash and cash equivalents, end of period	51,507	35,205	51,507	35,205	56,866

Parent company income statement

	3 months		6 months		Fiscal year
SEK thousand	2023 Apr–Jun	2022 Apr–Jun	2023 Jan–Jun	2022 Jan–Jun	Full year 2022
Operating income
Net revenue	2,610	1,956	5,369	3,631	8,935
Other operating income	114	–	229	–	267
Total	2,724	1,956	5,598	3,631	9,202
Operating expenses
Other external costs	-2,757	-2,723	-6,350	-5,849	-11,805
Personnel costs	-3,644	-2,315	-6,671	-4,880	-11,378
Depreciation of property, plant and equipment	-18	–	-34	–	-6
Other operating expenses	-22	–	-23	–	-2
Total other operating expenses	-6,441	-5,038	-13,078	-10,729	-23,191
Operating profit/loss	-3,717	-3,082	-7,480	-7,098	-13,989
Profit from participations in Group companies	–	–	–	–	10,065
Interest and similar income	–	-326	–	–	9
Interest and similar expenses	-2,524	-2,098	-4,946	-3,063	-6,541
Total profit/loss from financial items	-2,524	-2,424	-4,946	-3,063	3,533
Appropriations	–	–	–	–	32,905
Profit/loss before tax	-6,241	-5,506	-12,426	-10,161	22,449
Income tax	1,278	1,123	2,549	2,047	-2,605
Profit/loss for the period	-4,963	-4,383	-9,877	-8,114	19,844

13

Condensed balance sheet for the parent company

SEK thousand	06/30/2023	06/30/2022	12/31/2022
ASSETS
Fixed assets
Property, plant and equipment
Machinery and equipment	324	–	193
Total property, plant and equipment	324	–	193
Financial assets
Shares in Group companies	315,484	318,583	318,583
Other noncurrent receivables	630	–	630
Total financial assets	316,114	318,583	319,213
Total noncurrent assets	316,438	318,583	319,406
Current assets
Trade receivables	–	–	143
Receivables from Group companies	21,065	10,388	28,901
Current tax assets	416	358	–
Other current receivables	171	274	105
Prepaid expenses and accrued income	990	7,742	1,004
Cash and bank balances	16,636	252	10,459
Total current assets	39,278	19,014	40,612
TOTAL ASSETS	355,716	337,597	360,018
EQUITY AND LIABILITIES
Equity
Total restricted equity	37,625	37,625	37,625
Total nonrestricted equity	101,480	94,072	122,613
Total equity	139,105	131,697	160,238
LIABILITIES
Noncurrent liabilities
Liabilities to Group companies	–	–	120
Total noncurrent liabilities	–	–	120
Current liabilities
Borrowings to credit institutions	175,000	175,000	175,000
Trade payables	531	852	1,175
Liabilities to Group companies	29,533	18,508	12,203
Current tax liabilities	–	–	2,289
Other liabilities	6,183	2,381	557
Accrued expenses and prepaid income	5,364	9,159	8,436
Total current liabilities	216,611	205,900	199,660
Total liabilities	216,611	205,900	199,780
TOTAL EQUITY AND LIABILITIES	355,716	337,597	360,018

14

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 Supplemental Accounting Rules for Corporate Groups. The parent company's financial statements are prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's RFR 2 Accounting for Legal Entities. Disclosures in accordance with IAS 34.16A are presented, in addition to the financial statements and its associated notes, in the other parts of the interim report as well.

New standards that enter into effect in 2023

There are no new accounting standards that enter into effect in 2023 that impact the Group.

For further information regarding Christian Berner Tech Trade's accounting principles, refer to the company's annual report for 2022, Note 2 Accounting Principles and Note 1 in this report.

NOTE 2 Leasing

06/30/2023	06/30/2022	12/31/2022
98,817	74,891	71,920
98,817	74,891	71,920

Lease liabilities	06/30/2023	06/30/2022	12/31/2022
Current	23,046	20,189	21,065
Noncurrent	74,608	53,119	49,006
Total	97,654	73,308	70,071

	3 months		6 months		Fiscal year
	2023 Apr–Jun	2022 Apr–Jun	2023 Jan–Jun	2022 Jan–Jun	Full year 2022
Depreciation of right-of-use assets	-6,645	-7,731	-13,303	-11,831	-23,643
Interest expenses	-517	-387	-916	-804	-1,535
Total	-7,162	-6,118	-14,219	-12,635	-25,178

NOTE 3 Distribution of revenue

Christian Berner Tech Trade's revenue streams are presented by business area, where the business area corresponds to the market for the revenue.

Both the Technology & Distribution and Energy & Environment business areas have revenues from all three categories below.

Christian Berner Tech Trade has revenue in three categories:

1. Commission sales, where Christian Berner Tech Trade subsidiaries acts as a sales channel for suppliers through contact with the end customer. The revenue is an agreed commission that our subsidiaries receive from the suppliers and is usually received from suppliers in connection with or after the product is delivered to the end customer. The respective subsidiary does not check the sales flow and is normally dependent on suppliers and customers agreeing and closing the deal in order for us to be able to receive final payment from the supplier.

2. Project sales refer to the revenue streams where Christian Berner Tech Trade subsidiaries have several performance commitments, i.e., it is not only comprised of one service or product, but the agreement comprises several different parts. The revenue is mainly comprised of remuneration agreed in

advance for the projects and usually paid through advance invoicing and invoicing at various milestones in the projects, depending on the size of the projects. These projects can run for a long time, and depending on their nature, the income and expenses are also recognized gradually as the degree of completion advances. The earnings outcome for larger projects depends on the estimate holding and the project being successful. Accordingly, there is always an uncertainty regarding the profitability of the project before it is completed.

1. Sales of goods and services. This category pertains to the goods and services sold separately. It may concern a service or installation, a product or spare part from our inventory. These goods are sold at the amounts agreed with the customer, usually based on price lists. The time for revenue recognition of these goods and services is usually when control is transferred to the customer, at which time our undertaking is fulfilled. Invoicing usually takes place in connection with delivery. The largest uncertainty here would be if the customer did not have payment capacity to pay us for services rendered or products delivered.

NOTE 4 Financial instruments by category

Financial assets measured at cost

Assets on the Balance Sheet	06/30/2023	06/30/2022	12/31/2022
Trade receivables	154,397	113,903	145,474
Cash and cash equivalents	51,507	35,205	56,866
Other noncurrent receivables	987	300	941
Total	206,891	149,409	203,281

Financial liabilities measured at amortized cost	06/30/2023	06/30/2022	12/31/2022
Borrowings to credit institutions	175,000	175,000	175,000
Lease liabilities	97,654	73,308	70,071
Trade payables	61,105	63,424	77,351
Accrued expenses and prepaid income	55,742	59,427	49,436
Total	389,501	371,159	371,858

Additional purchase consideration measured at fair value	06/30/2023	06/30/2022	12/31/2022
Opening balance	–	14,361	14,361
Utilization	–	-15,422	-15,422
Purchase	–	–	–
Exchange rate differences	–	1,061	1,061
Closing balance	–	–	–

CBTT holds various financial instruments and most of them are measured at their amortized cost, with the exception of liabilities for additional purchase considerations, which instead are measured at their fair value through profit or loss. A liability to pay an additional purchase consideration is a financial instrument the value of which is dependent on assumptions and assessments made by the company (level 3 instruments). In the current case, the value of the liability depends on the acquired company's performance in 2021. Where financial instruments are recognized at their amortized cost, these values correspond in all cases to the fair values of the items. During the first quarter of 2022, a debt obligation of SEK 3.6 million was adjusted regarding Empakk's acquisition calculation, which was subsequently paid out in April 2022.

Group – KPIs

AMOUNT IN SEK THOUSANDS	2023 Apr–Jun	2022 Apr–Jun	Change %	2023 Jan–Jun	2022 Jan–Jun	Change %	2022/23 R12	Full year 2022	Change %
Operating income	247,212	214,083	15.5	486,691	396,769	22.7	934,688	844,766	10.6
Net revenue	245,901	213,759	15.0	484,211	395,056	22.6	931,155	842,000	10.6
EBITA	17,526	11,596	51.1	31,850	17,754	79.4	54,604	40,508	34.8
EBITA margin, %	7.1	5.4		6.5	4.5		5.8	4.8
Balance sheet total	672,680	615,891	9.2	672,680	615,891	9.2	–	637,701
Equity	208,569	184,305	13.2	208,569	184,305	13.2	–	201,068
Revenue growth, %	15.5	14.9		22.7	14.2		–	13.0
Gross margin, %	40.0	39.7		39.7	40.4		38.2	38.4
Equity ratio, %	31.0	29.9		31	29.9		–	31.5
Return on equity (R12), %	29.4	19.7		26.2	15.1		24.7	16.4
Net interest-bearing debt, excluding IFRS 16	123,493	139,795	-11.7	123,493	139,795	-11.7	–	118,134
Net interest-bearing debt, including IFRS 16	221,147	213,103	3.8	221,147	213,103	3.8	–	188,205
Average number of employees, FTE (count)	219	217	0.9	219	217	0.9	–	215
Number of shares, end of period		18,759,398 18,759,398		– 18,759,398	18,759,398		– 18,759,398 18,759,398		–
Earnings per share (SEK)	0.60	0.38	56.9	1.07	0.55	93.7	1.82	1.30	40.0

Definitions

Non-IFRS performance indicators	Description	Objective
Operating income	Net revenue and other operating income.	Operating income is a combination of how the compa ny's various business areas and markets perform.
Revenue growth	Increase in operating income as a percentage of the revenue of the previous year.	Indicator of the company's growth relative to the previ ous period, which illustrates the company's direction and enables the underlying driving forces to be tracked.
EBITA	Earnings before impairment of goodwill and impairment and amortization of other intangible assets that arose in connection with business combinations and equiva lent transactions (Earnings Before Interest, Tax and Amortization).	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 operating income.	The EBITA margin illustrates the company's profit gen eration before interest, taxes and amortization, relative to operating income. A performance indicator that is appropriate for companies such as Christian Berner Tech Trade.
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.
Profit/loss for the period	Profit after tax.	Profit/loss for the period: This indicator is relevant because it is the profit for the period that the Board of Directors decides to distribute to shareholders or rein vest in the company.
Balance sheet total	The company's total assets.	Total assets indicates the company's total assets that are at the disposal of the company in order to generate returns for shareholders.
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 financ ing 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, end of 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.
Net interest-bearing debt, exclud ing IFRS 16	Interest-bearing liabilities, excluding lease liabilities (IFRS 16), less cash and cash equivalents at the end of the period.	This indicator should be seen as a complement to Net interest-bearing debt, including IFRS 16, as lease liabil ities in certain contexts and by certain stakeholders can be seen as a special type of debt.
Net interest-bearing debt, includ ing IFRS 16	Interest-bearing liabilities, including lease liabilities (IFRS 16), less cash and cash equivalents at the end of the period.	Net debt/net cash and cash equivalents is a key perfor mance indicator that shows the company's total debt/ equity ratio.
Gross margin	Net revenue less goods for resale through net revenue.	Gross margin provides a picture of the contribution margin generated by operating activities.
Average number of employees	The number of employees in the company translated into full-time positions, i.e., the number of full-time employees who did work during the period.	This key performance indicator can be analyzed in rela tion to total revenue to assess the company's efficiency based on the number of employees.
Earnings per share (SEK)	Profit for the period attributable to the parent compa ny's shareholders divided by the average number of shares.	Earnings per share (SEK), the measure is relevant because it shows how much of the profit for the period is allocated to each share.

Calculation of key performance indicators

	3 months		6 months			Fiscal year
SEK thousand	2023 Apr–Jun	2022 Apr–Jun	2023 Jan–Jun	2022 Jan–Jun	2022/23 roll 12 months	Full year 2022
Business area
Technology & Distribution	130,867	134,851	275,760	249,656	554,040	527,936
Energy & Environment	115,269	80,556	208,975	148,190	381,333	320,548
Other + intra-Group	-235	-1,648	-524	-2,790	-4,218	-6,484
Total net revenue	245,901	213,759	484,211	395,056	931,155	842,000
EBITA
Operating profit/loss	17,299	11,360	31,384	17,293	53,661	39,570
Amortization of intangible assets	227	237	466	461	943	938
EBITA	17,526	11,597	31,850	17,754	54,604	40,508
EBITA margin, %
Total revenue	247,212	214,083	486,691	396,769	934,688	844,766
EBITA	17,526	11,597	31,850	17,754	54,604	40,508
EBITA margin, %	7.1	5.4	6.5	4.5	5.8	4.8
Gross margin, %
Net revenue	245,901	213,759	484,211	395,056	931,155	842,000
Goods for resale	-147,568	-128,855	-291,835	-235,456	-575,034	-518,655
Gross margin, %	40.0	39.7	39.7	40.4	38.2	38.4
Equity ratio
Balance sheet total	672,680	615,891	672,680	615,691	–	637,701
Closing balance of equity	208,569	184,305	208,569	184,305	–	201,068
Equity ratio, %	31.0	29.9	31.0	29.98		31.5
Net interest-bearing debt, excluding IFRS 16
Total interest-bearing liabilities	272,654	248,308	272,654	248,308	–	245,071
Less leasing liabilities	-97,654	-73,308	-97,654	-73,308	–	-70,071
Less cash and cash equivalents	-51,507	-35,205	-51,507	-35,205	–	-56,866
Net interest-bearing debt, excluding IFRS 16	123,493	139,795	123,493	139,795	–	118,134
Net interest-bearing debt, including IFRS 16
Total interest-bearing liabilities	272,654	248,308	272,654	248,308	–	245,071
Less cash and cash equivalents	-51,507	-35,205	-51,507	-35,205	–	-56,866
Net interest-bearing debt, including IFRS 16	221,147	213,103	221,147	213,103	–	188,205
Earnings per share (SEK)
Profit/loss for the period	11,279	7,187	20,151	10,404	34,090	24,343
Number of shares, end of period	18,759,398	18,759,398	18,759,398	18,759,398	18,759,398	18,759,398
Earnings per share (SEK)	0.60	0.38	1.07	0.55	1.82	1.30

The information in this report is published in accordance with the EU Market Abuse Regulation 596/2014 and the Securities Market Act (2007:528). The information was provided by the below-mentioned contact persons to be published on July 21, 2023 at 8:00 a.m.

Upcoming events

October 27, 2023 Interim report for Q3 2023

February 9, 2024 Year-end report 2023

April 25, 2024 Interim report, Q1 2024

July 19, 2024 Interim report for Q2 2024

Contact details

Caroline Reuterskiöld, CEO Christian Berner Tech Trade AB Tel: +46 (0)31-33 66 900 Email: caroline.reuterskiold@christianberner.com

Henrik Nordin, CFO Christian Berner Tech Trade AB Tel: +46 (0)31-33 66 900 Email: henrik.nordin@christianberner.com

This interim report has not been reviewed by the company's auditor.

English convenience translation from Swedish original. In case of discrepancies between the Swedish original and the English translation, the Swedish original shall prevail.