Nilörngruppen

Quarterly Report • Oct 26, 2022

Interim report Nilörngruppen AB (publ) Q3, January – September 2022

Period July - September

• Order bookings decreased by 3 percent to MSEK 230 (236).
• Revenue increased by 14 percent to MSEK 232 (203).
• Revenue adjusted for currency effects amounted to MSEK 206, i.e. an underlying organic increase of 2 percent.
• Operating profit amounted to MSEK 37.0 (29.3).
• Profit for the period amounted to MSEK 28.0 (20.8).
• Earnings per share amounted to SEK 2.45 (1.82).

Period January - June

• Order bookings increased by 28 percent to MSEK 755 (587).
• Revenue expressed in SEK increased by 34 percent to MSEK 744 (554).
• Revenue adjusted for currency effects amounted to MSEK 675 (554), i.e. an underlying organic increase of 22 percent.
• The operating profit amounted to MSEK 122.1 (79.4).
• Profit for the period amounted to MSEK 91.9 (57.1).
• Earnings per share amounted to SEK 8.06 (5.0).
• Net cash (excluding IFRS16) amounted to MSEK 43 (59).

CEO STATEMENT

Dear Shareholder,

The positive trend continues, albeit at a slightly lower rate of increase. We are now close to the "billion target" with sales of SEK 978 million and an operating profit of SEK 162 million on a 12 month rolling basis. The lower growth rate is attributable to higher comparative figures and a certain slowdown.

There has been a positive development, especially in Germany, but also from our relatively new markets Italy, Spain, and the USA. Our clients in Sports and Outdoor continue to be the locomotives.

Our production facility in Portugal benefits from the fact that more and more customers are moving their purchases back to Europe and we have invested in increased production capacity there. The business in Bangladesh continues to develop strongly where our own production that guarantees quality, availability and sustainability, has given us a competitive advantage. We also have a positive development in our production facilities in Hong Kong, England, Germany, and Turkey.

The positive earnings trend, with an operating margin of 16 (14) percent, is attributable to higher sales and thus also a high utilization rate in our own production and in other operations.

The work of strengthening the organization and creating a clear structure continues. The number of employees is increasing, which can primarily be attributed to production / inventory, sales functions, but also overhead functions such as purchasing, CSR and IT. Nilorn have full focus on and with the goal of being a leader in sustainability. This means more investment in systems and organization to guide and help our customers achieve their goals.

It is difficult to predict the future and, above all, how a possible decline in retail sales will affect us. There are constantly new challenges, which places demands on flexibility, as Nilörngruppen operates in several markets. Right now, we are grappling with daily disruptions to the electricity supply in Bangladesh, but which so far have been well handled by our talented local staff.

Our employees continue to do a fantastic job of managing the challenges we have, while adapting the organization, introducing new ways of working and introducing new colleagues.

Krister Magnusson CEO

Period July – September

Order bookings

Order bookings decreased by 3 percent to MSEK 230 (236).

Net revenue

Revenue in SEK increased by 14 percent to MSEK 232 (203).

Gross profit

The gross margin was 45.0 (45.7) percent and has been positively affected by Nilorn's own production, which has had a high utilization rate. At the same time as we are affected by increased freight costs, increased raw material and energy prices.

Other income, costs and depreciation

Other income amounted to MSEK 8.2 (1.8) of which MSEK 6.5 was attributable to currency and total other operating costs of MSEK 4.1 is also attributable to currency. The external costs amounted to MSEK 16.0 (15.1) and personnel costs to MSEK 47.1 (42.8) of which the majority is attributable to currency, more employees and provision for bonuses. Depreciation increased to MSEK 8.4 (6.5) MSEK.

Operating profit

The operating profit amounted to MSEK 37.0 (29.3), which makes for an operating margin of 16.0 (14.4) percent.

High capacity utilization of our own factories and other operations attributable to high volumes has had a positive impact on the operating margin.

Net finance items, taxes and profit for the period

Net finance items amounted to MSEK −0.4 (−0.6). Taxes amounted to MSEK -8.7 (-7.9) and is a function of different tax rates in different countries. We expect a tax rate of approximately 23-24 percent for the year. The period's result amounted to MSEK 28.0 (20.8) and earnings per share amounted to SEK 2.45 (1.82).

Cash flow, capital expenditures, financing and liquidity Cash flow from operating activities amounted to MSEK 13.3 (22.8).

Cash flow from investment activities amounted to MSEK −5.5 (−3.0).

Period January - September

Order bookings

Order bookings increased to MSEK 755 (587).

Net revenue and profit

Net revenue in SEK increased by 34 percent to MSEK 744 (554). Net revenue adjusted for currency effects amounted to MSEK 675 (554), equivalent to underlying organic increase of 22 percent. The gross margin was 44 (47) percent.

The Swedish krona has weakened against most currencies, which negatively affects consolidated sales. However, the Group's income is met by costs in each respective foreign currency, which minimizes the effect on earnings.

Other income amounted to MSEK 18.1 (7.1). External costs increased to MSEK 52.9 (42.5). Personnel costs increased to MSEK 141.6 (120.9).

Depreciation, amortisation and impairment charges increased to MSEK 23.0 (19.0).

Operating profit amounted to MSEK 122.1 (79.4), for an operating margin of 16.4 (14.3) percent.

Taxes paid amounted to MSEK -28.2 (-20.1) which gives a tax rate of 23.5 (26.0) percent. Profit after taxes amounted to MSEK 91.9 (57.1).

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 30.0 (60.5).

Cash flow from investment activities amounted to MSEK −12.5 (−8.7) which is mainly attributable to investment in a new ERP system and new machines in Portugal.

Net debt at the end of the period, excluding IFRS 16, amounted to MSEK 43 (59). IFRS 16 has increased liabilities by MSEK 27 and comparable figures IFRS 16 is net cash of MSEK 16 (22).

Personnel

The average number of employees in the Group was 579 (531), of whom 240 (211) were women. Of the total number of employees 322 (308) persons or 56 (56) percent are active in production and warehouses.

The increase in personnel is attributable to production and warehouse staff, sales/back office, but group functions such as purchasing, CSR and IT.

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 23 (21).

Net revenue for the period amounted to MSEK 22.7 (19.6). The operating result was MSEK −4.3 (-3.7) and profit after taxes was MSEK 50.8 (9.8), 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 2021 Annual Report, Note 2.

Nominating committee

Nilörngruppen does not have an appointed Nomination Committee, as the ownership picture is clear as AB Traction owns a majority of the votes. However, shareholders are always welcome to submit comments and/or suggestions on the composition of the Board to the Chairman of the Board Petter Stillström 08 - 506 289 00.

Review

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

Calendar

• 9 February 2023 Year–end Report
• 18 April 2023 Interim Report Q1
• 3 May 2023 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., 26 October 2022.

Borås, 26 October 2022 Nilöngruppen 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 2022 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	2022	2021	2022	2021
Net revenue	232,024	203,442	743,500	553,847
Raw materials, supplies and goods for resale	-127,583	-110,541	-414,615	-296,181
Gross profit	104,441	92,901	328,885	257,666
Other operating revenue	8,192	1,813	18,133	7,093
Other external costs	-16,006	-15,143	-52,908	-42,535
Personnel costs	-47,073	-42,806	-141,557	-120,930
Depreciation, amortisation and impairment charges	-8,384	-6,512	-23,045	-18,969
Other operating costs	-4,121	-956	-7,394	-2,898
Operating profit	37,049	29,297	122,114	79,427
Net finance items	-417	-615	-1,980	-2,190
Profit before taxes	36,632	28,682	120,134	77,237
Taxes	-8,661	-7,920	-28,239	-20,149
Net profit for the period	27,972	20,762	91,895	57,088
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	2.45	1.82	8.06	5.01
Earnings per share, SEK after dilution	2.45	1.82	8.06	5.01

Consolidated Statement of Comprehensive Result

Amounts in SEK thousand	July - September		January - September
	2022	2021	2022	2021
Net profit for the period	27,972	20,762	91,895	57,088
Other comprehensive result that may be reposted to net profit for the period
Translation differences	8,229	2,853	20,145	4,253
Total profit for the period	36,201	23,615	112,040	61,341
Total profit for the period attributable to:
The Parent Company's equity holders	36,201	23,615	112,040	61,341

Quarterly Income Statements

Amount in MSEK)	2022			2021				2020				2019
	Q1	Q2	Q3	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Net revenue	242.3	269.1	232.0	175.2	175.2	203.4	234.5	155.5	142.3	147.0	173.4	178.1	195.8	170.8	170.6
Raw materials, supplies and goods for resale	-136.2	-150.8	-127.6	-93.9	-91.8	-110.5	-128.0	-82.8	-88.2	-78.2	-97.0	-103.9	-114.0	-94.4	-95.3
Gross profit	106.2	118.3	104.4	81.3	83.4	92.9	106.5	72.7	54.1	68.8	76.4	74.2	81.8	76.4	75.3
Gross margin	43.8%	44.0%		45.0% 46.4%		47.6% 45.7%	45.4%		46.8% 38.0%	46.8%	44.1%	41.7%	41.8%	44.7%	44.1%
Other income	2.7	7.2	8.2	3.5	1.7	1.8	4.8	1.5	6.9	5.3	5.4	2.5	0.7	1.2	0.7
Operating costs	-61.8	-72.9	-67.2	-51.7	-55.8	-58.9	-64.2	-58.5	-54.2	-47.0	-54.8	-55.8	-56.5	-51.8	-58.0
Depreciation, amortisation and impairment charges	-6.9	-7.7	-8.4	-6.2	-6.3	-6.5	-7.0	-6.7	-6.7	-6.6	-5.8	-5.8	-5.8	-6.5	-6.4
Operating profit	40.2	44.9	37.0	26.9	23.0	29.3	40.1	9.0	0.1	20.5	21.2	15.1	20.2	19.3	11.6
Operating margin		16.6% 16.7%		16.0% 15.4% 13.1% 14.4% 17.1%				5.8%		0.1% 13.9% 12.2%			8.5% 10.3% 11.3%		6.8%
Operating profit per share	3.5	3.9	3.2	2.4	2.0	2.6	3.5	0.8	0.0	1.8	1.9	1.3	1.8	1.7	1.0

Quarterly development of: Net revenue Operating profit

	1 January – 30 Sept		1 January – 31 December
KEY FINANCIAL INDICATORS	2022	2021	2021	2020	2019	2018	2017
Revenue growth, %	34.2	24.5	27.5	-14.0	1.0	7.0	12.0
Revenue growth, % (local currency)	15.0	33.0	33.0	-9.0	4.0	8.0	13.0
Operating margin, %	16.4	14.3	15.2	8.2	9.3	12.0	12.1
Profit margin, %	16.2	13.9	14.7	7.6	8.8	11.8	12.1
Average equity	305.8	229.1	244.0	198.3	183.7	167.3	145.9
Return on equity, %	30.1	24.9	35.8	16.9	25.7	42.3	44.6
Equity ratio, %	50.8	47.6	50.0	49.7	45.3	53.0	49.2
Interest-bearing net cash (liabilities –), MSEK*	16.4	21.8	40.7	-13.2	-89.6	-2.5	9.2
Earnings per share, SEK	8.1	5.0	7.67	2.94	4.14	6.20	5.70
Equity per share, SEK	29.2	21.8	24.40	18.40	16.37	15.85	13.50
Dividend per share, SEK	2.0	2.0	2.00	0.00	4.00	4.00	3.60
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	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988	11,401,988
period Average number of employees	579	531	553	499	494	482	446

* Interest-bearing net cash (liabilities –), has been effected by 27 (37) MSEK by the introduction of IFRS 16

Consolidated Balance Sheet

Amounts in SEK thousand	2022-09	2021-09	2021-12	2020-12
Assets
Intangible non-current assets	27,211	24,698	25,617	23,486
Other non-current assets	130,855	134,714	133,320	132,597
Inventories	213,015	126,655	145,917	106,648
Trade receiveables	131,806	108,657	114,216	72,012
Other current assets	37,465	27,321	20,748	21,323
Cash and cash equivalents	115,395	99,843	116,367	66,276
Total assets	655,747	521,888	556,185	422,342
Equity and liabilities
Equity	333,288	248,344	278,258	209,809
Long-term interest-bearing liabilites	43,602	49,161	46,078	51,274
Long-term non-interest-bearing liabilities	5,370	5,094	5,766	4,601
Current interest-bearing liabilities	55,377	28,918	29,583	28,179
Current non-interest-bearing liabilities	218,110	190,371	196,500	128,479
Total equity and liabilities	655,747	521,888	556,185	422,342

Changes in Consolidated Equity

2022		Other		Retained earnings
	Share	contributed		including net profit		Total
Amounts in SEK thousand	capital	capital	Reserves	for the period	Total	equity
OPENING EQUITY 2022-01-01	2,850	43,231	-6,432	238,609	278,258	278,258
Net profit for the period				91,895	91,895	91,895
Other total profit
Translation differences during the period			20,145		20,145	20,145
Transactions with shareholders
Dividend				-57,010	-57,010	-57,010
CLOSING EQUITY 2022-09-30	2,850	43,231	13,713	273,494	333,288	333,288
2021 Amounts in SEK thousand
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	4,409	197,854	248,344	248,344

Consolidated Cash Flow Statement	July - September		January - September
Amounts in SEK thousand	2022	2021	2022	2021
Operating activities
Operating profit	37,049	29,297	122,114	79,427
Adjustment for items not included in cash flow
Depreciation, amortisation and impairment charges	8,384	6,512	23,045	18,969
Profit/loss from sales of fixed assets	-709	0	-709	0
Other non cash generated items	-5,963	-4,297	-15,855	-12,850
	38,762	31,512	128,596	85,546
Interest income	124	144	585	420
Interest expense	-384	-202	-781	-669
Paid taxes	-4,657	-3,520	-13,673	-9,010
Cash flow from operating activities before changes in working	33,845	27,934	114,727	76,287
Cash flow from changes in working capital
Inventories	3 4	-9,572	-49,879	-16,024
Trade receivables	19,568	-32,753	-3,853	-30,748
Other short-term receivables	-5,165	-3,411	-16,718	-5,997
Trade payables	-23,658	17,557	-20,409	17,605
Other liabilities	-11,321	23,033	6,166	19,350
Cash flow from operating activities	13,303	22,788	30,034	60,473
Investment activities
Acquisition of intangible non-current assets	-1,802	-1,046	-4,292	-3,148
Acquisition of tangible non-current assets	-3,978	-1,676	-7,969	-5,080
Sales of fixed assets	1,105	0	1,105	0
Change in long-term receivable	-774	-296	-1,343	-478
Cash flow from investment activities	-5,449	-3,018	-12,499	-8,706
Financing activities
Repayment/raising loans	-6,447	-482	30,323	173
Paid dividend	0	0	-57,010	-22,806
Cash flow from financing activities	-6,447	-482	-26,687	-22,633
Cash flow for the year	1,407	19,288	-9,152	29,134
Cash and cash equivalents at beginning of period	112,505	78,205	116,367	66,276
Translation difference in cash and cash equivalents	1,484	2,350	8,181	4,433
Cash and cash equivalents at end of period	115,396	99,843	115,396	99,843

Parent Company Income Statement	3 months		9 months
Amounts in SEK thousand	July - September		January - September
	2022	2021	2022	2021
Net revenue	8,892	6,419	22,657	19,566
Other operating income	1 8	3 4	6 1	101
Total revenue	8,910	6,453	22,718	19,667
Other external costs	-3,003	-2,391	-8,430	-6,524
Personnel costs	-4,924	-4,583	-15,862	-14,975
Depreciation, amortisation and impairment charges	-1,128	-627	-2,729	-1,866
Operating profit	-145	-1,148	-4,303	-3,698
Net finance items	49,417	216	55,191	13,512
Profit after finance items	49,272	-932	50,888	9,814
Taxes	-65	-9	-136	-38
Net profit for the period	49,207	-941	50,752	9,776

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

Parent Company Balance Sheet

Amounts in SEK thousand	2022-09	2021-09	2021-12	2020-12
Assets
Intangible non-current assets	25,312	22,577	23,573	21,132
Tangible non-current assets	608	691	657	797
Financial non-current assets	145,019	117,332	117,348	117,233
Short-term receivables	100,448	76,005	51,069	115,170
Cash and cash equivalents	0	16,970	43,305	-
Total assets	271,387	233,575	235,952	254,331
Equity and liabilities
Equity	175,084	171,358	181,340	184,386
Untaxed reserves	12,800	9,936	12,800	9,936
Current liabilities	83,504	52,281	41,812	60,010
Total equity and liabilities	271,387	233,575	235,952	254,331

Notes

1. Accounting policies

As was the case with the Annual Accounts for 2021, 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 2021, 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 2021 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 2022

No new accounting policies with significant impact on Nilörn have entered into force in 2022.

2. Information by geographic area

				Koncern
Perioden januari - sept 2022	Sverige	Europa	Asien	gemensamt	Summa
Intäkter
Extern omsättning	37,775	252,940	452,785	-	743,500
Summa omsättning	37,775	252,940	452,785	0	743,500
Resultat
Rörelseresultat	13,086	44,887	65,747	-1,606	122,114
Ränteintäkter				585	585
Räntekostnader				-2,565	-2,565
Skatt på periodens resultat				-28,239	-28,239
Periodens resultat	13,086	44,887	65,747	-31,825	91,895

				Koncern
Perioden januari - sept 2021	Sverige	Europa	Asien	gemensamt	Summa
Intäkter
Extern omsättning	29,669	181,476	342,703	-	553,847
Summa omsättning	29,669	181,476	342,703	0	553,847
Resultat
Rörelseresultat	11,407	27,221	43,748	-2,950	79,426
Ränteintäkter				419	419
Räntekostnader				-2,609	-2,609
Skatt på periodens resultat				-20,148	-20,148
Periodens resultat	11,407	27,221	43,748	-25,288	57,088

3. IFRS 16 Leases

		Of which effect of	30 September 2022 not
Report of financial position	30-Sep-22	IFRS 16	incl. effect of IFRS 16
Other non-current assets	130,855	27,645	103,210
Other current assets	37,465	-1,422	38,887
Total effect on assets		26,223
Equity (profit for the year)	333,288	-786	334,074
Long-term interest-bearing liabilities	43,602	18,166	25,436
Short-term interest-bearing liabilities	55,377	8,853	46,524
Total effect on equity		26,233

		Of which effect of	Jan-Sept 2022 not incl.
Report of effects on profit	Jan-Sept 2022	IFRS 16	effect of IFRS 16
Other external cost	-52,908	14,806	-67,714
Depreciation, amortisation and impairment	-23,045	-13,811	-9,234
Net finance items	-1,980	-735	-1,245
Taxes	-28,239	-54	-28,185
Total	-106,171	206	-106,377

		Of which effect of	Jan-Sept 2022 not incl.
Key financial indicators	Jan-Sept 2022	IFRS 16	effect of IFRS 16
Operating margin	16.4%	0.1%	16.3%
Net cash and cash equivalents (liabilities −), MSEK	16.4	-27.0	43.4
Equity ratio, %	50.8%	-2.1%	52.9%

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.