Profilgruppen — Interim / Quarterly Report 2019

Feb 11, 2020

Year end report January 1 – December 31, 2019

Profit at the same level as last year

This is a translation of the Swedish version of the report. In case of any discrepancies, the Swedish version shall prevail.

Fourth quarter

• Turnover MSEK 381.9 (414.3)
• Operating profit MSEK 22.7 (24.0)
• Operating margin 5.9 percent (5.8)
• Net income MSEK 18.9 (17.1)
• Cash flow from operating activities MSEK 33.2 (54.0)
• Earnings per share SEK 2.42 kr (2.13)
• New CEO and President, Fredrik Zöögling, entered 7th of October

Year 2019

• Turnover MSEK 1,622.1 (1,618.3), at the same level as previous year
• Operating profit MSEK 113.2 (113.7)
• Operating margin 7.0 percent (7.0)
• Net income MSEK 80.5 (83.5)
• Cash flow from operating activities MSEK 110.7 (129.8)
• Earnings per share SEK 9.98 kr (10.88)
• The Board is proposing a dividend of SEK 5.00 per share (5.00)

Fredrik Zöögling, CEO and President of ProfilGruppen, comments:

"During the year much of our energy has been put on creating a new platform for future growth. We have built an entirely new extrusion facility and at the same time exchanged the ERP-system, challenges that have affected the whole organization. Simultaneously we achieve an operating profit at the same level as last year, which is satisfying and shows the great involvement from our employees. Our mission now is to use this new platform as the takeoff for us to the next level".

Market

The market for aluminium extrusions was, according to the European aluminium industry association EA, assessed to be reduced by approximately nine percent in northern Europe during 2019. In the latest forecast from EA, the market is assessed to be reduced by about two percent during 2020, in relation to 2019, in Scandinavia as well as in Europe overall.

Turnover and result in the fourth quarter

The turnover for the Group amounted to MSEK 381.9 (414.3). During the quarter approximately 7,550 tonnes (7,500) of aluminium extrusions were delivered, at the same level as the same period last year.

The production was about 7,700 tonnes (8,200). The share of exports amounted to 45 percent (44) of volume, and 52 percent (49) of turnover.

The operating profit amounted to MSEK 22.7 (24.0), which is equivalent to an operating margin of about 5.9 (5.8) percent. The product mix in the fourth quarter was slightly less favorable with lower added value than the previous quarters during the year.

The subsidiary PG&WIP gives a positive contribution compared to last year, when they were affected with quality problems and disruptions in production. Inventory valuation losses due to decreased price on raw material has affected the result negatively compared to last year.

The profit before tax amounted to MSEK 23.5 (22.5). Earnings per share totalled SEK 2.42 (2.13).

Turnover and result of the year

The turnover in 2019 amounted to MSEK 1,622.1 (1,618.3), at the same level as previous year.

The share of exports amounted to 44 percent (44) of volume, and 50 percent (48) of turnover.

The delivery volume decreased approximately three percent to 31,000 (31,975) tonnes of aluminium extrusions. The decrease in volume is mainly related to long profiles without other added value to two specific export customers. About 70 percent of delivered profiles had added value.

During the year the Group produced approximately 31,100 tonnes (32,550) of aluminium extrusions.

The operating profit amounted to MSEK 113.2 (113.7).

Margin improvements and higher level of added value have affected the result positively, at the same time the lower delivery volume and inventory valuation losses have affected the result negatively compared to previous year. The operations in the subsidiary PG&WIP are contributing positively compared to last year that was charged with quality problems and production disruptions.

We have been able to limit the effect on the result related to the fire in our anodizing facility during the summer by buying capacity externally. The production is fully back to its normal.

The profit of the first quarter of the year was also affected by some one-time effects, both positive and negative, that even out each other in total.

The operating margin amounted to 7.0 percent (7.0). The profit before tax amounted to MSEK 101.9 (107.6).

Earnings per share (no dillution) totalled SEK 9.98 (10.88). The average number of shares in thousands was 7,399 (7,399).

The return on capital employed amounted to 18.3 percent (23.9), which has been affected by the investment in production capacity not yet in use.

Investments

Investments in 2019 amounted to MSEK 218.6 (137.7).

An investment in new production capacity for extrusion of aluminium profiles in Åseda is ongoing since last year. In total the investment is assessed to amount to approximately MSEK 310 and the facility is in test operation since the yearend. The project has affected the investments of the period by MSEK 183.4 (86.6) and approximately MSEK 40 of the total investment is then remaining.

A project to develop the IT systems of the company has affected the investments in intangible assets by MSEK 9.2 (16.7).

The remaining investments are mainly related to continuous improvements.

Financing and liquidity

Cash flow from current operations amounted to MSEK 110.7 (129.8) and after investments to MSEK -121.4 (9.9). At the beginning of the year the levels of raw material inventory were high due to uncertainty regarding possible trade sanctions. During the first half of the year we still had high levels of inventory and the inventory from the year-end was paid. During the second half of the year the inventory has been balanced to normal levels as the risk of trade sanctions is assessed to being decreased.

The ongoing investment in new production capacity has affected the cash flow of the year and after other investments the cash flow was MSEK 68.8 (82.0).

The liquidity reserve as of December 31, 2019 amounted to MSEK 146.8 (366.4).

The balance sheet total as of the end of the year was MSEK 1,090.1 (918.3). Net debt as of December 31, 2019 amounted to MSEK 300.2 (116.2) and net debt/EBITDA to 1,8 (0,7). ProfilGruppens' target for net debt/EBITDA is < 2,0.

The net debt exckluding the investment in new production capacity is MSEK 39,7 which is equivalent to a net debt/EBITDA of 0.2 times.

Personnel

The average number of employees in the Group during the year was 466 (459). The number employees as of December 31, 2019 totalled 455 (468).

The new CEO of ProfilGruppen, Fredrik Zöögling, entered at 7th of October 2019.

Significant risks and uncertain factors

The company's risks and risk management have not significantly changed since publishing of the 2018 Annual Report.

Dividend

For the financial year 2019, the Board is proposing to the Annual General Meeting of shareholders a dividend of SEK 5.00 per share (5.00), which means that the total dividend

will amount to MSEK 37.0 (37.0). The Board is also proposing that the cut-off date for the dividend will be 23 April 2020.

Outlook for 2020

We expect a demand in 2020 at the same level as in 2019. We plan to take our new extrusion facility in use during the second quarter of 2020, initially by redistributing volumes from the other facilities. Increased depreciation of around MSEK 20 in 2020 compared to 2019, start up costs and increased interests will affect the result negatively.

Outlooks for 2019/2020 published on October 22, 2019: We expect a slow down in demand from segments of our market during the coming quarters.

Annual General Meeting

The AGM 2019 will take place on Tuesday April 21, 2020 at 16:00 CET. All shareholders are then welcome to Folkets Hus in Åseda. Before the AGM there will be an opportunity to see the new production facility of the company.

Annual report 2019 and interim reports 2020

The annual report for 2019 will be available in the company's reception and on the company's website no later than March 30, 2020.

Interim reports for 2020 will be provided as follows: Interim report first quarter April 21, 14:00 Interim report second quarter July 15, 14:00 Interim report third quarter October 20, 14:00

Statement of comprehensive income in short

		Q 4	Q 4	Q 1-4	Q 1-4
MSEK	Note	2019	2018	2019	2018
Net turnover		381.9	414.3	1 622.1	1 618.3
Cost of goods solds	2	-336.4	-363.9	-1 411.9	-1 410.1
Gross Margin		45.5	50.4	210.2	208.2
Other operating revenues		5.6	0.0	5.6	0.1
Selling expenses		-16.7	-14.1	-59.4	-53.1
Administrative expenses		-11.7	-12.1	-43.2	-41.2
Other operating expenses		0.0	-0.2	0.0	-0.3
Operating profit/loss		22.7	24.0	113.2	113.7
Financial income		-0.5	0.5	0.4	0.7
Financial expenses		1.3	-2.0	-11.7	-6.8
Net financial income/expense		0.8	-1.5	-11.3	-6.1
Income after financial items		23.5	22.5	101.9	107.6
Tax		-4.6	-5.4	-21.4	-24.1
Net income for the period		18.9	17.1	80.5	83.5
Other comprehensive income (net after tax)
Items that will subsequently be reclassified to net income:
Changes in hedging reserve		3.9	3.4	2.2	1.2
Translation differences		-0.4	-0.1	-0.2	0.1
Items that will subsequently not be reclassified to net income:
Revaluation of defined benefit obligation		-1.6	1.2	-1.6	0.4
Comprehensive income for the period		20.8	21.6	80.9	85.2
Net income for the period attributable to:
Owners of the parent		18.0	15.7	73.9	80.5
Non-controlling interests		0.9	1.4	6.6	3.0
Total comprehensive income for the period attributable to:
Owners of the parent		19.9	20.2	74.3	82.2
Non-controlling interests		0.9	1.4	6.6	3.0
Earnings per share (before and after dilution), SEK		2.42	2.13	9.98	10.88
Average number of shares, thousands		7 399	7 399	7 399	7 399

Statement of financial position in short

	31 Dec	31 Dec
MSEK Note	2019	2018
Assets
Intangible fixed assets	39.0	31.5
Tangible fixed assets	523.2	362.9
of which construction of new extrusion line in progress	268.7	86.4
Right of use assets 7	13.8	0.0
Financial fixed assets	0.2	0.2
Total fixed assets	576.2	394.6
Inventories	232.0	247.5
Current receivables 4	252.0	250.1
Liquid assets	29.9	26.1
Total current assets	513.9	523.7
Total assets	1 090.1	918.3
Shareholders' equity
Total equity attributable to the parent Company´s shareholders	398.8	361.4
Non-controlling interests	18.1	13.0
Total equity	416.9	374.4
Liabilities
Interest-bearing liabilities	185.0	94.9
Interest-free liabilities	55.1	37.7
Total long-term liabilities	240.1	132.6
Interest-bearing liabilities and provisions	145.2	47.4
Interest-free liabilities 4	287.9	363.9
Total short-term liabilities	433.1	411.3
Total shareholders' equity and liabilities	1 090.1	918.3

Statement of changes in equity in short

	Q 4	Q 4	Q 1-4	Q 1-4
MSEK	2019	2018	2019	2018
Opening balance, total equity	397.5	352.8	374.4	324.6
Changes attributable to owners of the parent:
Comprehensive income for the period	19.9	20.2	74.3	82.2
Changes attributable to non-controlling interests:
Comprehensive income for the period	0.9	1.4	6.6	3.0
Dividend	-1.4	0.0	-38.4	-35.4
Closing balance, total equity	416.9	374.4	416.9	374.4

Statement of cash flows in short

		Q 4	Q 4	Q 1-4	Q 1-4
MSEK	Note	2019	2018	2019	2018
Operating activities
Operating profit/loss		22.7	24.0	113.2	113.7
Depreciation and write-down		15.9	13.4	57.7	49.2
Adjustment for other non-cash items		-4.8	1.2	1.5	1.3
Interest received/paid		0.9	-1.2	-11.7	-6.7
Paid income tax		-6.6	-5.0	-28.7	-22.5
Cash flow prior to change in working capital		28.1	32.4	132.0	135.0
Inventories		-17.0	-62.2	15.4	-66.3
Operating receivables		62.1	22.3	7.3	-22.9
Operating liabilities		-40.0	61.5	-44.0	84.0
Cash flow from operating activities		33.2	54.0	110.7	129.8
Acquisition of property. plant and equipment	6, 7	-38.9	-46.0	-232.1	-120.0
Sale of property, plant and equipment		0.0	0.0	0.0	0.1
Cash flow from investing activities		-38.9	-46.0	-232.1	-119.9
Dividend		-1.4	0.0	-38.4	-35.4
Loans raised	7	-3.5	33.3	94.4	34.8
Change in bank overdraft facility utilized		-25.6	-39.1	94.0	8.4
Repayment of loans		-6.8	-1.0	-25.1	-19.6
Cash flow from financing activities		-37.3	-6.8	124.9	-11.8
Cash flow for the period		-43.0	1.2	3.5	-1.9
Liquid assets, opening balance		72.9	24.9	26.1	27.9
Translation differences in liquid assets		0.0	0.0	0.3	0.1
Liquid assets, closing balance		29.9	26.1	29.9	26.1
Liquidity reserve				146.8	366.4

1) Whereof investments related to the build up of a new production facility for extrusion have affected cash flow with MSEK 190.2 (72,1).

The parent company

The turnover of the parent company amounted to MSEK 21.8 (21.8) and comprises payments for rents from companies in the Group. Profit after financial items amounted to MSEK 15.8 (19.4).

Investements in the parent company during 2019 amounts to MSEK 66.5 (43.4) and are connected to investments in properties, including the new extruding plant that are under progress.

All the current receivables are receivables from Group companies.

The parent company's interest-bearing liabilities amounted to MSEK 163.6 (48.3) as of 31 December, 2019.

The change in the parent company's liquidity during the period has been MSEK -0.4 (0).

The parent company employs none (none). The parent company's risks and uncertain factors do not significantly differ from the Group.

Income statement in short – the parent company 1)

		Q 4	Q 4	Q 1-4	Q 1-4
MSEK	Note	2019	2018	2019	2018
Turnover	5	5.4	5.5	21.8	21.8
Cost of goods sold		-0.7	-1.3	-3.4	-3.9
Gross Margin		4.7	4.2	18.4	17.9
Other operating revenues		0.0	0.0	0.0	0.0
Administrative expenses		-1.1	-1.1	-4.5	-3.9
Operating income		3.6	3.1	13.9	14.0
Result from shares in group companies		3.5	0.0	3.5	4.9
Interest income and similar income and expense items		0.3	0.1	1.3	0.8
Interest expenses and similar income and expense items		-1.0	-0.2	-2.9	-0.3
Income after financial items		6.4	3.0	15.8	19.4
Appropriations		-8.1	38.0	-8.1	38.0
Income before tax		-1.7	41.0	7.7	57.4
Tax		1.4	-9.1	-0.6	-11.6
Net income for the period		-0.3	31.9	7.1	45.8

1)The parent companys income statement also constitutes its comprehensive incomes statement

Balance sheet in short – the parent company

	31 Dec	31 Dec
MSEK Note	2019	2018
Assets
Tangible assets
Tangible fixed assets	176.9	113.4
Financial assets (shares in subsidiaries)	87.9	87.9
Total fixed assets	264.8	201.3
Current assets
Current receivables	135.1	122.1
Cash and bank balances	0.0	0.4
Total current assets	135.1	122.5
Total assets	399.9	323.8
Equity and liabilities
Equity	171.2	201.1
Untaxed reserves	54.7	46.6
Provisions for taxes	3.4	3.9
Long-term liabilities	0.0	0.0
Current liabilities	170.6	72.2
Total equity and liabilities	399.9	323.8

Notes

Note 1 - Accounting Principles

The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The parent company accounting has been prepared in accordance with the Swedish Annual Accounts Act (ÅRL) and the Swedish Financial Reporting Standards Council´s RFR 2 Accounting for Legal Entities. The accounting principles applied are identical to the ones used for the latest annual report with the exception that the Group as of January 1, 2019, IFRS 16 applies leases. The implementation of the standard has some effect on the financial reports. For information on the effects of the transition to IFRS 16, see note 7.

The parent company has no leasing agreements that are covered by IFRS 16 Leases, but applies from January 1, 2019, the items listed in RFR 2 (IFRS 16 Leases, pp 2-12).

New accounting principles – IFRS 16 Leases

The Group's leases consist mainly of premises, vehicles and IT. The leasing agreements for these are normally written for fixed periods of three to five years for premises, three to six years for vehicles and three years for IT, but opportunities for extension may exist, as described below. The terms are negotiated separately for each agreement and contain a large number of different contract terms.

The leasing agreements are reported as rights of use and a corresponding liability, on the day that the leased asset is available for use by the Group. Each lease payment is divided between the repayment of the debt and the financial cost. The financial cost shall be allocated over the lease term so that each accounting period is charged with an amount corresponding to a fixed interest rate for the liability recognized during the respective period. The right of use is written off linearly over the shorter of the asset's useful life and the length of the lease.

Assets and liabilities arising from leasing agreements are initially recognized at present value. As this is the first report in accordance with IFRS 16, all rights of use have been valued at the value of the lease liability, with adjustment for prepaid leasing fees attributable to the agreements as of January 1, 2019.

The lease liabilities include the present value of the following lease payments:

• Fixed fees
• variable leasing fees that depend on an index

The lease payments are discounted by the marginal loan rate. The average interest rate used for discounting is three percent. The assets with rights of use are valued at cost and include the following:

• the initial valuation of the lease debt,

• payments made at or before the time when the leased asset is made available to the lessee,

Leases of lesser value are expensed on a straight-line basis in the income statement.

Options to extend or terminate contracts are included in the asset and liability as it is reasonably certain that they will be used. The terms are used to maximize the flexibility of managing the agreements.

Note 2 – Depreciation and write-down of fixed assets

	Q 4	Q 4	Q 1-4	Q 1-4
MSEK	2019	2018	2019	2018
Intangible fixed assets	1.3	0.0	1.8	0.0
Land and buildings	1.0	1.0	3.8	3.8
Machinery and equipment	13.6	12.4	52.1	45.4
Total	15.9	13.4	57.7	49.2
of which write-down	0.0	0.0	0.0	0.0

Note 3 – Pledged assets and contingent liabilities

MSEK	31 Dec 2019	31 Dec 2018
Property mortgages	82.9	82.9
Floating charges	241.5	241.5
Shares in subsidiaries	226.5	174.8
Guarantees for other companies	0.0	0.0
Guarantee commitments FPG/PRI	0.2	0.2

Note 4 - Financial instruments, valued at fair value in statement of financial position

MSEK	31 Dec 2019	31 Dec 2018
Short-term receivables:
Currency derivatives	1.6	1.2
Short-term non interest-bearing liabilities;
Interest rate derivatives	0.3	1.3
Currency derivatives	1.2	2.7

Both interest rate- and currency derivatives are primarily used for hedge and are valued on level 2 according to IFRS 13.

Note 5 – Related transactions

No significant related transactions that significantly affect the Groups results or financial statement have been made during the period. Apart from the intragroup rental income in the parent company no significant related transactions have been done regarding the parent company either.

Note 6 - Statement of cash flow, acquisition of property, plant and equipment

MSEK	Q 3 2019	Q 3 2018	Q 1-3 2019	Q 1-3 2018
Capitalised in balance sheet	48.2	65.1	218.6	137.7
of which related to new extrusion line	43.1	56.3	183.4	86.6
Unpaid	-9.4	-22.9	-9.4	-22.9
of which related to new extrusion line	-8.2	-14.5	-8.2	-14.5
Paid during the period, capitalised in previous period	0.0	3.8	22.8	5.2
of which related to new extrusion line	0.0	0.0	15.0	0.0
Investments in property, plant and equipment	38.8	46.0	232.0	120.0

Note 7 – New accounting principles IFRS 16 Leases

This note explains the effects in the Group's financial report when applying IFRS 16 Leases. In the balance sheet, the following adjustments were made at the transition date (January 1, 2019) regarding IFRS 16 Leases:

MSEK	Outgoing balance 2018-12-31	Effect of implementing IFRS 16	Ingoing balance 2019-01-01
Machinery and equipment	7.7	0.0	7.7
Right of use asset	0.0	12.8	12.8
Shortterm leasing liabilities	1.2	5.2	6.4
Longterm leasing liabilities	0.0	7.6	7.6

IFRS 16 has had a minimal impact on operating profit and a minimal impact on earnings after financial items.

The Group has applied IFRS 16 Leases from January 1, 2019, which resulted in changed accounting policies and adjustments in the amounts reported in the financial report. In accordance with the transitional rules in IFRS 16, the Group has applied the simplified transition method and has therefore not recalculated the comparative figures. All rights of use are valued at the transition to an amount corresponding to the lease liability adjusted for prepaid leasing fees attributable to the agreements as of December 31, 2018. At the transition, the following relief rules have been applied:

• The rights to use rights have been classified and then the discount rate has been set per country and class.
• The right of use has been established with the help of ex-post knowledge regarding, for example, extension options and termination clauses.
• Leases concluded within twelve months from the first day of implementation have been reported as short-term leases.

Below is an explanation of the difference between the operational leasing commitments reported in accordance with IAS 17 just before the first day of implementation (i.e. on December 31, 2018) and leasing liabilities reported in accordance with IFRS 16 on the first day of implementation (i.e. on January 1, 2019).

MSEK
Obligation for operational leasing agreements as of 31 December 2018	14.1
Short-term lease agreements expensed on a straight-line basis	-0.5
Leasing agreements for which the underlying asset is of low value	-0.2
Discounting with the Group's marginal loan interest rate, 2-7%	-0.6
Liabilities for financial leasing agreements as of 31 December 2018	1.2
Leasing liabilities as of 1 January 2019	14.0

Key ratios

The Group	Q 4 2019	Q 4 2018	Q 1-4 2019	Q 1-4 2018
Net turnover, MSEK	381.9	414.3	1 622.1	1 618.3
Income before depreciation, MSEK	38.6	37.4	170.9	162.9
Operating income/loss, MSEK	22.7	24.0	113.2	113.7
Operating margin, %	5.9	5.8	7.0	7.0
Income after financial items, MSEK	23.5	22.5	101.9	107.6
Profit margin, %	6.2	5.4	6.3	6.6
Return on equity, %	18.6	18.8	20.3	23.9
Return on capital employed, %	12.0	19.3	18.3	23.9
Cash flow from operating activities, MSEK	33.2	54.0	110.7	129.8
Investments, MSEK	48.2	65.1	218.6	137.7
Liquidity reserve, MSEK	-	-	146.8	366.4
Net debt, MSEK	-	-	300.2	116.2
Net debt/EBITDA	-	-	1.8	0.7
Interest-bearing liabilities and interest-bearing provisions, MSEK	-	-	330.2	142.3
Net debt/equity ratio	-	-	0.7	0.3
Total assets, MSEK	-	-	1 090.1	918.3
Equity ratio, %	-	-	38.2	40.8
Capital turnover	-	-	2.6	3.4
Proportion of risk-bearing capital, %	-	-	43.3	44.9
Interest coverage ratio	-17.4	12.4	9.7	16.9
Average number of employees	462	466	466	459
Net turnover per employee (average), TSEK	827	889	3 481	3 526
Income after fin, per employee (average), TSEK	51	48	219	235
Average number of shares, thousands (no dilution)	7 399	7 399	7 399	7 399
Number of shares, end of period, thousands	7 399	7 399	7 399	7 399
Earnings per share, SEK	2.42	2.13	9.98	10.88
Equity per share, SEK	-	-	53.90	48.86

The key ratios above are a summary of the financial report in order to give an overview of ProfilGruppen's financial position. Definitions and reconciliation of the alternative performance measures are given at www.profilgruppen.se

Rounding differences may occur. When calculating key ratios: return on equity, return on capital employed and capital turnover the result and turnover for the period have been adjusted upward to 12 months. The key ratios presented are for the total Group and based on the Group consolidated figures including non-controlling interest, except Earnings per share and Equity per share.

The undersigned affirm that interim report have been prepared in accordance with IAS 34 Interim Financial Reporting and with generally accepted accounting principles and provide a fair representation of the Group's and the company's position and result and describe significant risks and factors of uncertainty that the companies that form part of the Group face.

Åseda, February 11, 2020

The Board of Directors, ProfilGruppen AB (publ) Org. No. 556277-8943

The report has not been audited.

Brief facts about ProfilGruppen

• The vision is to be the preferred provider of innovative solutions for aluminium extrusions in northern Europe
• A partnership with ProfilGruppen should be uncomplicated and involve personal commitment
• Aluminium is our choice, it is more favourable from a life-cycle perspective than many other alternatives, and enables us to develop sustainable products
• Aluminium extrusions are used within many industries, for example furnishings, construction, automotive and electronics
• The manufacturing of extrusions takes place in Åseda exclusively and includes:
  • Extrusion of aluminium profiles in three production lines, the fourth will be taken in use during 2020
  • Anodizing facility for surface treatment
  • Further processing of aluminium extrusions in the form of cutting processing, bending and stamping
  • Fully automated facilities for processing, coating and packaging of interior design details
• A dozen subcontractors broadens the range of processing possibilities
• The company is certified in accordance with IATF 16949, ISO 14001 and ISO 50001
• Started in 1981 in Åseda, Sweden
• Listed on the Stockholm Stock Exchange in 1997 and is included in the Small Cap list

For more information, please contact

Fredrik Zöögling, President and CEO Mobile: +46 (0)70-932 16 50 fredrik.zoogling@profilgruppen.se

Ulrika Bergmo Sköld, CFO Mobile: +46 (0)73-230 05 98 ulrika.bergmo.skold@profilgruppen.se

This information is of the type that ProfilGruppen AB (publ) is obligated to disclose in accordance with the Market Abuse Regulation and Nasdaq Stockholm:s regulation for issuers. The information was issued through Fredrik Zöögling for publication on February 11, 2020 at 14:00 CET.

Current information and photographs for free publication are available at www.profilgruppen.se

Year end report January 1 – December 31, 2019 ProfilGruppen AB (publ) Page 10 of 10