Nilörngruppen

Quarterly Report • Oct 22, 2021

Interim report Nilörngruppen AB (publ) Q3, January – September 2021

Period July - September

• Order bookings increased by 44 percent to MSEK 236 (162).
• Revenue increased by 38 percent to MSEK 203 (147).
• Operating profit amounted to MSEK 29.3 (20.4).
• Profit for the period amounted to MSEK 20.8 (14.4).
• Earnings per share amounted to SEK 1.82 (1.26).

Period January – September

• Order bookings increased by 27 percent to MSEK 587 (464).
• Revenue expressed in SEK increased by 24 percent to MSEK 554 (445).
• Revenue adjusted for currency effects amounted to MSEK 591 (445), i.e. an underlying organic increase of 33 percent.
• The operating profit amounted to MSEK 79.4 (29.5).
• Profit for the period amounted to MSEK 57.1 (19.0).
• Earnings per share amounted to SEK 5.0 (1.66).
• Net cash amounted to MSEK 59.4 (4)

CEO STATEMENT

Dear shareholder,

Nilorn's positive trend continues and reports both sales and earnings the best first nine months ever! In a rolling 12 months, operating profit is now over SEK 100 million.

The positive earnings trend is attributable to higher sales, which has benefited from sports and e-commerce customers, while retail customers are doing better now that the Covid restrictions have eased. This applies to most markets, but it has been particularly positive for our companies in England, Portugal, Bangladesh and Hong Kong. In Portugal, we invested in increased production capacity a couple of years ago, which now benefits from an increasing number of customers moving their purchases back to Europe.

The business in Bangladesh continues to develop strongly where our own production that guarantees quality, availability and sustainability has given us a competitive advantage. The factory has a high capacity utilisation and thus efficient production and strong results. We also have a positive development in our own production in Hong Kong, England and Portugal. The positive development in our own production facilities has had a positive impact on gross margin while we have seen sharply increased raw material prices, freight and energy shortages in China, which has had a negative impact on the last quarter.

Over the years, Nilorn group's growth has been achieved through expansion of existing customers, new customers and as a consequence of customers growing and being successful. Nilorn Group has extensive experience in helping customers with its growth through our expertise in key areas such as design, logistics/service and sustainability. However, a couple of larger customers have now chosen another supplier, which is expected to have a negative impact on sales. On the positive side, however, we also have some new customers with the potential to eventually reach significant volume

Net cash (excluding IFRS16) amounted to SEK 59 m (4). We also have approximately SEK 120 million in external bank credits.

Nilorn invests even more resources in strengthening sustainability work with the goal of "becoming the best in class". This means, among other things, that we have further strengthened the organization within CSR and purchasing, that we reduce the number of suppliers for closer cooperation and better control, and that we improve system support to more easily get information and thus increased service, to all our customers. It is a comprehensive work that requires both time and resources, but I am convinced that the improvement measures we are implementing will strengthen us for the future and that Nilorn will continue its positive trend.

Krister Magnusson CEO

Period July – September

Order bookings

Order bookings increased by 44 percent to MSEK 236 (162).

Net revenue

Revenue in SEK increased by 38 percent to MSEK 203 (147).

Gross profit

Gross margin was 45.7 percent (46.8). The gross profit margin has been positively impacted by Nilorn's own production, which has had a high utilization rate and thus low production costs but at the same time, we are now increasingly affected by increased freight costs, increased raw material prices and energy shortages in China.

Other income, costs and depreciation

Other income amounted to MSEK 1.8 (5.3) of which MSEK 2.3 was attributable to government contributions for furlough in Europe and Hong Kong last year. The external costs amounted to MSEK 15.1 (13.6) and personnel costs increased to MSEK 42.8 (32.6). Last year, the personnel costs were abnormally low attributable to voluntary decrease in working time and a voluntary decrease of the salary with 15% during three months, made by the managing directors and sales directors. This year's personnel costs have been affected by more employees and provisions for bonus. Depreciation decreased to MSEK 6.5 (6.6) MSEK.

Operating profit

The operating profit amounted to MSEK 29.3 (20.5), which makes for an operating margin of 14.4 (13.9) percent.

Net finance items, taxes and profit for the period

Net finance items amounted to MSEK −0.6 (−1.3). Taxes amounted to MSEK -7.9 (-4.8). The relatively high tax in the quarter is above all due to relatively high tax rate in Bangladesh. The period's result amounted to MSEK 20.8 (14.4) and earnings per share amounted to SEK 1.82 (1.26).

Cash flow, capital expenditures, financing and liquidity

Cash flow from operating activities amounted to MSEK 22.8 (32.5).

Cash flow from investment activities amounted to MSEK −3.0 (−1.5) which is mainly attributable to investment in a new ERP system.

Period January - September

Order bookings

Order bookings amounted to MSEK 587 (464).

Net revenue and profit

Net revenue in SEK increased by 24 percent to MSEK 554 (445). Net revenue adjusted for currency effects amounted to MSEK 591 (445), equivalent to underlying organic increase of 33 percent. Gross margin was 47 percent (44), where the previous year was negatively impacted by inventory write-downs attributable to customer-specific inventory and the gross profit margin for the year has been positively impacted by our own production.

The Swedish krona has strengthened against most currencies, which has affected consolidated turnover negatively. However, the earnings effect is minimized when the Group's revenues and costs are met in each foreign currency.

Other income amounted to MSEK 7.1 (13.7) of which MSEK 8.1 last year was attributable to government contributions for furlough in Europe and Hong Kong. External costs decreased to MSEK 42.5 (46.6). Personnel costs increased to MSEK 120.9 (110.4).

Depreciation, amortisation and impairment charges decreased to MSEK 19.0 (20.1).

Operating profit amounted to MSEK 79.4 (29.5), for an operating margin of 14.3 (6.6) percent.

Taxes paid amounted to MSEK -20.1 (-7.8) MSEK which gives a tax expense of 26 (29.2) percent. Profit after taxes amounted to MSEK 57.1 (19.0).

Segments

As shown in the segment accounting in Note 2 all segments have won in both revenue and profit.

Cash flow, capital expenditures, financing and liquidity Cash flow from operating activities amounted to MSEK 60.4 (51.4).

Cash flow from investment activities amounted to MSEK −8.7 (−10.2).

Net debt at the end of the period amounted to MSEK 21.8 of which the transition to the new leasing standard, IFRS 16, has increased liabilities by MSEK 36.9. Comparable figures not including rebooking according to IFRS 16 is net cash (net liability) MSEK 59 (4).

Personnel

The average number of employees in the Group was 531 (502), of whom 211 (217) were women. Of the total number of employees 308 persons or 56 percent are active in production and warehouses.

Transactions with closely related parties

There were no transactions between the Nilörn Group and closely related parties affecting the Group's profit and financial position during the period, except for dividends to the Parent Company's shareholders during the period. The Parent Company's transactions with subsidiaries refer to design, product development, IT and other services.

Parent Company

The Parent Company's operations largely consist of handling group–wide functions, such as branding and design, product

development, finances, administration, information and IT. The average number of employees was 21 (21).

Net revenue for the period amounted to MSEK 14.5 (13.6). The operating result was MSEK −3.7 (-2.5) and profit after taxes was MSEK 9.8 (35.1), mainly attributable to dividend from group companies.

Risks and uncertainty factors

Given its international operations, Nilörngruppen is always subject to a variety of financial risks. The significant risks and uncertainty factors facing Nilörngruppen are currency risks, political risks in individual countries, credit risks and IT security as described in Nilörngruppen's 2020 Annual Report, Note 2. Please see below for the financial risks related to Covid-19.

COVID-19 and its effects

There is continued uncertainty in the outside world, which has the consequence that there is uncertainty both in the ability to obtain deliveries and in obtaining outlets for the company's products.

What we are now seeing are high shipping costs, high costs on raw materials (cotton, plastic and paper) as well as a lack of semiconductors and thus increased prices for RFID inserts. We have so far compensated for the increased prices through increased efficiency in our own production.

Review

This report has been subject to review by the Company's auditors.

Calendar

• 11 February 2022 Year–end Report
• 21 April 2022 Interim Report Q1
• 3 May 2022 Annual General Meeting at 16.00 in Borås

This information is information that Nilörngruppen is under obligation to publish in accordance with the EU Market Abuse Regulation. The information herein was provided by the contact person named below for publication at 8:00 a.m., 22 October 2021.

BORÅS, 22 October 2021 NILÖRNGRUPPEN AB (PUBL)

Krister Magnusson / CEO

FOR FURTHER INFORMATION CONTACT:

Krister Magnusson, CEO Mobile: +46–704 85 21 14 E–mail: krister.magnusson@nilorn.com

Nilörngruppen AB Box 499 503 13 Borås SWEDEN www.nilorn.com

Review report

To the Board of Directors of Nilörngruppen AB Corp. id. 556322-3782

Introduction

We have reviewed the attached financial information report (interim report) of Nilörngruppen AB as of 30 September 2021 and the three-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this financial information report (interim report) in accordance with the Annual Accounts Act. Our responsibility is to express a conclusion on this financial information report (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 attached financial information report (interim report) is not prepared, in all material respects, accordance with the Annual Accounts Act.

Göteborg

KPMG AB

Mathias Arvidsson Authorized Public Accountant

Summary financial reports

	3 months		9 months
		July - September		January - September
Amounts in SEK thousand	2021	2020	2020	2019
Net revenue	203,442	147,048	553,847	444,841
Raw materials, supplies and goods for resale	-110,541	-78,198	-296,181	-249,148
Gross profit	92,901	68,850	257,666	195,693
Other operating revenue	1,813	5,257	7,093	13,695
Other external costs	-15,143	-13,554	-42,535	-46,550
Personnel costs	-42,806	-32,571	-120,930	-110,442
Depreciation, amortisation and impairment charges	-6,512	-6,646	-18,969	-20,094
Other operating costs	-956	-887	-2,898	-2,783
Operating profit	29,297	20,449	79,427	29,519
Net finance items	-615	-1,272	-2,190	-2,723
Profit before taxes	28,682	19,177	77,237	26,796
Taxes	-7,920	-4,773	-20,149	-7,821
Net profit for the period	20,762	14,404	57,088	18,975
Average number of shares outstanding (thousands)	11,402	11,402	11,402	11,402
Average number of shares outstanding after dilution (thousands) 11,402		11,402	11,402	11,402
Earnings per share, SEK	1.82	1.26	5.01	1.66
Earnings per share, SEK after dilution	1.82	1.26	5.01	1.66

Consolidated Statement of Comprehensive Result

Amounts in SEK thousand	July - September		January - September
	2021	2020	2021	2020
Net profit for the period	20,762	14,404	57,088	18,975
Other comprehensive result that may be reposted to net profit for the period
Translation differences	2,853	-2,948	4,253	-2,926
Total profit for the period	23,615	11,456	61,341	16,049
Total profit for the period attributable to:
The Parent Company's equity holders	23,615	11,456	61,341	16,049

Quarterly Income Statements

Amount in MSEK)	2021			2020				2019				2018
	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Net revenue	175.2	175.2	203.4	155.5	142.3	147.0	173.4	178.1	195.8	170.8	170.6	152.0	202.6	171.7	185.7
Raw materials, supplies and goods for resale	-93.9	-91.8	-110.5	-82.8	-88.2	-78.2	-97.0	-103.9	-114.0	-94.4	-95.3	-84.8	-113.4	-94.0	-103.8
Gross profit	81.3	83.4	92.9	72.7	54.1	68.8	76.4	74.2	81.8	76.4	75.3	67.2	89.2	77.7	81.9
Gross margin	46.4%	47.6%	45.7%	46.8%	38.0%	46.8%	44.1%	41.7%	41.8%	44.7%	44.1%	44.2%	44.0%	45.3%	44.1%
Other income	3.5	1.7	1.8	1.5	6.9	5.3	5.4	2.5	0.7	1.2	0.7	1.7	1.4	2.0	4.2
Operating costs	-51.7	-55.8	-58.9	-58.5	-54.2	-47.0	-54.8	-55.8	-56.5	-51.8	-58.0	-54.3	-61.3	-58.5	-58.2
Depreciation, amortisation and impairment charges	-6.2	-6.3	-6.5	-6.7	-6.7	-6.6	-5.8	-5.8	-5.8	-6.5	-6.4	-1.2	-2.0	-2.1	-2.5
Operating profit	26.9	23.0	29.3	9.0	0.1	20.5	21.2	15.1	20.2	19.3	11.6	13.4	27.3	19.1	25.4
Operating margin	15.4%	13.1%	14.4%	5.8%	0.1%	13.9%	12.2%	8.5%	10.3%	11.3%	6.8%	8.8%	13.5%	11.1%	13.7%
Operating profit per share	2.4	2.0	2.6	0.8	0.0	1.8	1.9	1.3	1.8	1.7	1.0	1.2	2.4	1.7	2.2

Quarterly development of: Net revenue Operating profit

	1 January – 30 Sept			1 January – 31 December
KEY FINANCIAL INDICATORS	2021	2020	2020	2019	2018	2017	2016
Revenue growth, %	24.5	-18.3	-14.0	1.0	7.0	12.0	16.0
Revenue growth, % (local currency)	33.0	-16.0	-9.0	4.0	8.0	13.0	18.0
Operating margin, %	14.3	6.6	8.2	9.3	12.0	12.1	12.3
Profit margin, %	13.9	6.0	7.6	8.8	11.8	12.1	12.1
Average equity	229.1	194.7	198.3	183.7	167.3	145.9	125.6
Return on equity, %	24.9	9.7	16.9	25.7	42.3	44.6	44.8
Equity ratio, %	47.6	44.7	49.7	45.3	53.0	49.2	50.8
Interest-bearing net cash (liabilities –), MSEK*	21.8	-42.9	-13.2	-89.6	-2.5	9.2	9.7
Earnings per share, SEK	5.0	1.7	2.94	4.14	6.20	5.70	4.93
Equity per share, SEK	21.8	17.8	18.40	16.37	15.85	13.50	12.08
Dividend per share, SEK	2.0	0.0	0.00	4.00	4.00	3.60	3.00
Average number of shares outstanding	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988
Number of shares outstanding at end of period	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988
Average number of employees	531	502	499	494	482	446	358

* Interest-bearing net cash (liabilities –), has been effected by 37 MSEK by the introduction of IFRS 16

Consolidated Balance Sheet

Amounts in SEK thousand	2021-09	2020-09	2020-12	2019-12
Assets
Intangible non-current assets	24,698	23,817	23,486	21,251
Other non-current assets	134,714	145,956	132,597	159,877
Inventories	126,655	117,157	106,648	119,007
Trade receiveables	108,657	83,071	72,012	59,382
Other current assets	27,321	21,142	21,324	20,571
Cash and cash equivalents	99,843	62,224	66,276	32,292
Total assets	521,888	453,368	422,343	412,380
Equity and liabilities
Equity	248,344	202,749	209,809	186,700
Long-term interest-bearing liabilites	49,161	34,925	51,274	47,834
Long-term non-interest-bearing liabilities	5,094	2,951	4,601	3,502
Current interest-bearing liabilities	28,918	70,180	28,179	74,084
Current non-interest-bearing liabilities	190,371	142,563	128,480	100,260
Total equity and liabilities	521,888	453,368	422,343	412,380

Changes in Consolidated Equity

2021		Other		Retained earnings
	Share	contributed		including net profit		Total
Amounts in SEK thousand	capital	capital	Reserves	for the period	Total	equity
OPENING EQUITY 2021-01-01	2,850	43,231	156	163,572	209,809	209,809
Net profit for the period				57,088	57,088	57,088
Other total profit
Translation differences during the period			4,253		4,253	4,253
Transactions with shareholders
Dividend				-22,806	-22,806	-22,806
CLOSING EQUITY 2021-09-30	2,850	43,231	4409	197,854	248,344	248,344
2020
Amounts in SEK thousand
OPENING EQUITY 2020-01-01	2,850	43,231	156	140,463	186,700	186,700
Net profit for the period				18,975	18,975	18,975
Other total profit
Translation differences during the period			-2,926		-2,926	-2,926
Transactions with shareholders
Dividend
CLOSING EQUITY 2020-09-30	2,850	43,231	-2770	159,438	202,749	202,749

Consolidated Cash Flow Statement	July - September		January - September
Amounts in SEK thousand	2021	2020	2021	2020
Operating activities
Operating profit	29,297	20,449	79,427	29,519
Adjustment for items not included in cash flow
Depreciation, amortisation and impairment charges	6,512	6,646	18,969	20,094
Other non cash generated items	-4,297	-4,698	-12,850	-13,241
	31,512	22,397	85,546	36,372
Interest income	144	3 9	420	552
Interest expense	-202	-317	-669	-1,199
Paid taxes	-3,520	-2,444	-9,010	-4,861
Cash flow from operating activities before changes in working	27,934	19,675	76,287	30,864
Cash flow from changes in working capital
Inventories	-9,572	-4,928	-16,024	-5,014
Trade receivables	-32,753	-14,732	-30,748	-28,952
Other short-term receivables	-3,411	-3,814	-5,997	-571
Trade payables	17,557	25,115	17,605	16,299
Other liabilities	23,033	11,230	19,350	38,802
Cash flow from operating activities	22,788	32,546	60,473	51,428
Investment activities
Acquisition of intangible non-current assets	-1,046	-1,170	-3,148	-4,320
Acquisition of tangible non-current assets	-1,676	-480	-5,080	-6,048
Acquisition of financial non-current assets	0	-2	0	3 0
Change in long-term receivable	-296	126	-478	9 3
Cash flow from investment activities	-3,018	-1,526	-8,706	-10,245
Financing activities
Repayment/raising loans	-482	-1,890	173	-8,320
Paid dividend	0	0	-22,806	0
Cash flow from financing activities	-482	-1,890	-22,633	-8,320
Cash flow for the year	19,288	29,130	29,134	32,863
Cash and cash equivalents at beginning of period	78,205	35,171	66,276	32,292
Translation difference in cash and cash equivalents	2,350	-2,077	4,433	-2,931
Cash and cash equivalents at end of period	99,843	62,224	99,843	62,224

Parent Company Income Statement	3 months		9 months
Amounts in SEK thousand	July - September		January - September
	2021	2020	2021	2020
Net revenue	4,809	4,413	14,510	13,637
Other operating income	1,644	1,903	5,157	6,523
Total revenue	6,453	6,316	19,667	20,160
Other external costs	-2,391	-3,707	-6,524	-7,983
Personnel costs	-4,583	-2,629	-14,975	-12,920
Depreciation, amortisation and impairment charges	-627	-655	-1,866	-1,762
Operating profit	-1,148	-675	-3,698	-2,505
Net finance items	216	-16,391	13,512	37,561
Profit after finance items	-932	-17,066	9,814	35,056
Taxes	-9	-48	-38	-80
Net profit for the period	-941	-17,114	9,776	34,976

Since there are no comprehensive profit items, comprehensive income coincides with the period's results.

Parent Company Balance Sheet

Amounts in SEK thousand	2021-09	2020-09	2020-12	2019-12
Assets
Intangible non-current assets	22,577	20,618	21,132	17,958
Tangible non-current assets	691	859	797	1208
Financial non-current assets	117,332	114,041	117,233	126,876
Short-term receivables	76,005	103,131	115,170	48,807
Cash and cash equivalents	16,970	-213	-	-
Total assets	233,575	238,436	254,331	194,849
Equity and liabilities
Equity	171,358	181,044	184,386	146,068
Untaxed reserves	9,936	7,786	9,936	7,786
Current liabilities	52,281	49,606	60,010	40,995
Total equity and liabilities	233,575	238,436	254,331	194,849

Notes

1. Accounting policies

As was the case with the Annual Accounts for 2020, the Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by EU, recommendation No 1 (RFR 1) of the Swedish Financial Reporting Board. As was the case with the Annual Accounts for 2020, the Parent Company prepares its financial statements in accordance with the Annual Accounts Act and recommendation No 2 (RFR 2) of the Swedish Financial Reporting Board. The Year-end Report is prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. The Year-end Report is prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.16 are found in the financial reports and its notes as well as in the other parts of the interim report.

From 1 January 2019 Nilörngruppen applies IFRS 16 Leases. The Group has applied the simplified transition method and has thus not recalculated comparative data. The simplification rule, that the right-of-use asset shall be equivalent to the lease liability, has been applied in the transition. No transition effect is therefore reported in equity. A complete description of the accounting policies for leases will be found in the 2020 Annual Report. Also refer to Note 3 for the effect of IFRS 16 on the quarter. The Parent Company has chosen to apply the simplification rules in RFR 2, which means that all leases will continue to be reported as operating leases.

New accounting policies for 2021

No new accounting policies with significant impact on Nilörn have entered into force in 2021.

2. Information by geographic area

	Nordic	Other		Intra
Period January - September 2021	region	Europe	Asia	Group	Total
Revenue
External revenue	39,769	171,375	342,703	-	553,847
Total revenue	39,769	171,375	342,703	0	553,847
Profit
Operating profit	11,407	27,221	43,748	-2,950	79,426
Interest income				419	419
Interest expense				-2,609	-2,609
Taxes on the on the period's profit				-20,149	-20,149
Net profit for the period	11,407	27,221	43,748	-25,289	57,087
Period January - September 2020
Revenue
External revenue	34,787	143,045	267,009	-	444,841
Total revenue	34,787	143,045	267,009	0	444,841
Profit
Operating profit	768	10,513	19,917	-1,679	29,519
Interest income				562	562
Interest expense				-3,285	-3,285
Taxes on the profit for the year				-7,821	-7,821
Net profit for the year	768	10,513	19,917	-12,223	18,975

3. IFRS 16 Leases

		Of which effect of	30 September 2021 not
Report of financial position	30/Sep/21	IFRS 16	incl. effect of IFRS 16
Other non-current assets	134,714	37,085	97,629
Other current assets	27,321	-1,086	28,407
Total effect on assets		35,999
Equity (profit for the year)	248,344	-856	249,200
Long-term interest-bearing liabilities	49,161	22,371	26,790
Short-term interest-bearing liabilities	28,918	14,484	14,434
Total effect on equity		35,999

		Of which effect of	Jan-Sept 2021 not incl.
Report of effects on profit	Jan-Sept 2021	IFRS 16	effect of IFRS 16
Other external cost	-42,535	11,817	-54,352
Depreciation, amortisation and impairment	-18,969	-10,896	-8,073
Net finance items	-2,190	-907	-1,283
Taxes	-20,149	0	-20,149
Total	-83,843	1 4	-83,857

		Of which effect of	Jan-Sept 2021 not incl.
Key financial indicators	Jan-Sept 2021	IFRS 16	effect of IFRS 16
Operating margin	14.3%	0.2%	14.2%
Net cash and cash equivalents (liabilities −), MSEK	21.8	-36.9	58.6
Equity ratio, %	47.6%	-3.5%	51.1%

4. Definitions of alternative key financial indicators

ESMA (The European Securities and Markets Authority) has published guidelines for alternative key financial indicators for companies with securities listed on a regulated market within EU. These guidelines shall be applied to alternative key financial indicators used starting 3 October 2016. Reference is made in the annual accounts to a number of non–IFRS performance metrics used to help investors as well as management to analyse the company's operations. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. Since all companies do not calculate financial metrics in the same way, they are not always comparable with metrics used by other companies. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. We describe below the various non–IFRS performance metrics used as a complement to the financial information reported in accordance with IFRS and how these metrics have been used.

Non–IFRS metrics	Definition	Justification
Average equity	Equity at the beginning of the period, plus equity at the end of the period, divided by two.	The metric is the difference between the Group's assets and liabilities, which is equivalent to consolidated equity contributed by owners and the consolidated aggregated profit. This metric is used to report the capital attributable to the Group's owners.
Average number of employees	Average number of yearly employed	This metric is used to measure the development of the Group's workforce.
Revenue growth	Net revenue at the end of the period, minus net revenue at the beginning of the period, divided by net revenue at the beginning of the period.	This metric is used to measure the development of the Group's revenue over time.
Return on equity	Period's result according to the income statement in percent of average equity.	This metric is used to analyse profitability over time, given the resources attributable to the Parent Company's owners.
Return on capital employed	Result before taxes, plus financial expenses, in percent of average capital employed.	Return on capital employed is a profitability metric used to gauge the result relative to the capital required to run the business.
Interest–bearing net cash and cash equivalents/liabilities	Interest–bearing receivables, cash and cash equivalents, reduced by interest–bearing liabilities.	The metric shows the total debt financing and is used as a complement to judge the feasibility of paying dividends, to implement strategic investments and to gauge the Group's ability to meet its financial obligations.
Operating margin	Operating result in percent of net revenue.	This metric is used to measure operative profitability.
Equity ratio	Equity in percent of balance sheet total.	This measure shows the proportion of the company's total assets financed with equity by its shareholders. A high equity ratio is an indication of financial strength.
Operating margin	Operating result in percent of net revenue.	This metric is used to measure operative profitability.

Definitions of key financial indicators not defined by IFRS

Nilörngruppen in Brief

Nilörngruppen is a global company founded in the 1970s, with expertise in adding value to trademarks through branding in the form of labels, packaging and accessories, primarily for customers in the fashion and apparel industry. Nilörngruppen offers complete, creative and customised concepts in branding, design, product development and logistic solutions. The Group conducts business via its own subsidiaries in Sweden, Denmark, Great Britain, Germany, Belgium, Portugal, Hong Kong, India, Turkey, China, Bangladesh, Italy and Pakistan. The Group has partner companies in Tunisia and Switzerland.