Rejlers

Quarterly Report • Oct 23, 2020

Q3. INTERIM REPORT. REJLERS AB JANUARY–SEPTEMBER 2020.

"We are increasing shareholder value through a more efficient, growing and more learning Rejlers."

JULY–SEPTEMBER, INCLUDING EMBRIQ JULY-AUG SIGNIFICANT EVENTS DURING THE QUARTER

• Net sales reduced by 2.9% to SEK 537.3 million (553.4), affected by divested operations
• Organic sales growth excluding exchange rate fluctuations amounted to -4,6% (6.5) – Adjusted EBITA amounted to SEK 25.6 million (26.5) and the adjusted EBITA margin was 4.8% (4.8)
• Capital gains regarding divested operations amounted to SEK 233.2 million (0)
• EBITA increased to SEK 258.8 million (26.5) and the EBITA margin was 48.2% (4.8)
• Earnings per share before dilution amounted to SEK 12.19 (0.71) and after dilution to

JANUARY–SEPTEMBER, INCLUDING EMBRIQ JAN-AUG

SEK 11.92 (0.71)

• Net sales increased by 9.8% to SEK 1,977.5 million (1,800.3)
• Organic sales growth excluding exchange rate fluctuations amounted to 0.5% (3.5)
• Adjusted EBITA increased to SEK 113.4 million (97.5) and adjusted EBITA margin increased to 5.7% (5.4)
• Capital gains regarding divested operations amounted to SEK 233.2 million (0)
• Restructuring costs amounted to SEK 18.4 million (0)
• EBITA increased to SEK 328.2 million (97.5) and the EBITA margin was 16.6% (5.4)
• Earnings per share before dilution amounted to SEK 14.02 (3.16) and after dilution to SEK 13.72 (3.16)

JULY—SEPTEMBER, REMAINING OPERATIONS

• Net sales increased by 8.0% to SEK 488.8 million (452.8)
• EBITA increased to SEK 20.6 million (20.0) and the EBITA margin was 4.2% (4.4)
• Net financial items amounted to an expense of SEK 17.7 million (0.8) affected by the translation of cash and cash equivalents in NOK and the buy-out of minority interests
• Net profit after tax amounted to SEK 1.5 million (7.2)
• Earnings per share before dilution amounted to SEK 0.08 (0.40) and after dilution to SEK 0.07 (0.40)

JANUARY—SEPTEMBER, REMAINING OPERATIONS

• Net sales increased by 16.2% to SEK 1,735.7 million (1,493.3)
• Adjusted EBITA increased to SEK 93.0 million (78.4) and adjusted EBITA margin was 5.4% (5.3)
• Restructuring costs amounted to SEK 18.4 million (0)
• EBITA amounted to SEK 74.6 million (78.4) and the EBITA margin was 4.3% (5.3)
• Net profit after tax amounted to SEK 23.6 million (42.1)
• Net financial items amounted to an expense of SEK 27,0 million (1,2) affected by an expense of SEK 16 million for the translation of cash and cash equivalents in NOK and an expense of SEK 4.2 million for the buy-out of minority interests
• Earnings per share before dilution amounted to SEK 1.20 (2.33) and after dilution to SEK 1.17 (2.33)

537.3

Net sales, SEK million

Adjusted EBITA, SEK million

Rejlers Finland wins a significant EPC-contract from Aurora Kilpilahti for the company's new transformer station. The project will begin immediately and will be completed in spring 2022.

Rejlers divests Embriq and focuses on accelerating growth in the core operations in technical consulting services. The buyer is Magnesium Capital LLP for a cash purchase consideration of NOK 400 million on a cash-free and debtfree basis.

Rejlers acquires the telecom operations in Sitowise, which is one of the largest consulting firms in infrastructure and construction in Finland. The acquisition means that Rejlers takes over business contracts, customers and 40 employees within Sitowise's telecom operations.

Rejlers technical partner in modernisation of

three Swedish hospitals in Sörmland. Rejlers' assignment encompasses the design of electrical systems, selectivity planning and testing, with Rejlers contributing an experienced project management team and local teams of specialists.

Rejlers responsible for design as Vasakronan creates Gothenburg's new landmark, the Kromet block. Rejlers is responsible for designing the block's electrical, telecommunications, control, security and solar cell systems during the programme phase.

Rejlers has signed a framework agreement with Mälarenergi applicable until the end of 2021, with an option for extension of up to two years. The framework agreement covers electricity grid-related services and meets the requirements and needs that Mälarenergi will have during the period as regards investments in its electricity grid.

Earnings per share before dilution, SEK

Rejlers' transformation continues

Thanks to strong measures, Rejlers achieved a clearly adequate EBITA and margin for the third quarter of the year despite the on-going pandemic. For the first nine months of the year, Rejlers increased adjusted EBITA (EBITA excluding non-recurring items) from SEK 97.5 million to SEK 113.4 million and sales increased to SEK 1,977.5 million (1,800.3).

Negative market impact

The COVID-19 pandemic continued to have a negative impact on large parts of Rejlers' market in the third quarter. While the market for qualified consulting services in energy and infrastructure has been relatively unaffected, customers within the manufacturing sector and properties have reduced their investments, which has mainly impacted our Finnish operations. To counter this, Rejlers acted quickly in the entire Group to implement both terminations and temporary layoffs of staff, as well as other cost reductions. This has made a quarterly profit on a par with the previous year's possible – also taking into account the divestment of Embriq on 1 September.

Selective recruitment in focus

During the quarter, we saw indications that the pandemic's impact on our markets has weakened and we believe in a gradual return to a more normal business situation. The situation that has arisen opens up new organic growth opportunities as many highly qualified engineers have been set aside by the labour market for various reasons in the past six months. We will therefore have a major focus on selective recruitment.

Higher utilisation and strategic transactions

In September, the final month of the quarter, we were able to note an improved utilisation week on week in every market. At the same time, Rejlers also won a number of strategically important contracts, especially in the Industry area in Finland. Among other things, we signed a new EPC agreement with Aurora Kilpilahti, the fruit of last year's acquisition from Neste Engineering Solutions, which makes Rejlers an entirely new partner with greater capacity for turn-key contracts in the Finnish market.

Divestment strengthens the core business

On 1 September, the Norwegian subsidiary Embriq was divested to Magnesium Capital at an enterprise value of NOK 400 million, which gave rise to a capital gain of SEK 233 million. For some time, we have sought a new owner for Embriq because it is largely a software company with needs for significant annual software investments and with an offer that differs from our other consultancy operations. We are now intending to reinvest the purchase consideration in Rejlers' core business. Rejlers' strategic acquisition work, which is intended to help us achieve our financial objectives by 2025, is continuing with a high priority. The main focus is on strengthening the project operations, primarily in the areas of energy and infrastructure in our existing markets.

Personal reflections

The pandemic is continuing to affect Rejlers and all of our surroundings. Nonetheless, I want to emphasize that the restructuring we have been implementing since the beginning of 2018 is also continuing through the COVID-19 crisis. Rejlers' overall objective creating a more efficient, more profitable and learning company by 2025 remains.

Stockholm, 23 October 2020 Viktor Svensson

"In September, we were able to note an improved utilisation week on week in every market."

We are on our way

STRATEGY

• Growth: Doubling Rejlers' size by 2025, average growth of 10% per year
• Market: Extra focus on Energy, a catalyst for future growth
• Offering: Increasing the percentage of projects and comprehensive solutions
• Geography: Continuously grow in Sweden, Finland and Norway plus one new market by 2025

VISION

– Home of the learning minds

Rejlers is a platform for continuous learning, development and growth. This way, we will be on the leading edge of development, be able to attract the best talents, maintain a competitive network and secure profitability.

FINANCIAL TARGETS

– 10% EBITA margin – 10% average annual growth

CORE VALUES

OPEN SOURCE CULTURE

LOVE the CHALLENGE

BRILLIANT NETWORKS

Financial summary

JULY—SEPTEMBER 2020

Revenues and profits, including Embriq July-Aug

During the quarter, Rejlers divested 100% of the shares in Rejlers Embriq AS and Rejlers Embriq AB for a cash purchase consideration of NOK 400 million on a cashfree and debt-free basis. The capital gain on the sale amounted to SEK 233.2 million; see page 18 for more information.

Sales and earnings were also negatively impacted by the COVID-19 pandemic during the third quarter. Rejlers has continued to implement a number of changes to manage the situation, such as short-term lay-offs, cost savings and continued flexible working environment.

Rejlers has received government assistance linked to COVID-19, mainly in Finland and Sweden. The Swedish grants from the Swedish Agency for Economic and Regional Growth are recognised as other income, which amounts to SEK 2.8 million. The Finnish grants for short-term lay-offs are paid by Finnish authorities directly to those laid off and thereby entail reduced personnel costs. During the quarter, around 3 per cent of the number of full-year employees in the Group were temporarily laid off.

Net sales totalled SEK 537.3 million (553.4), a decrease of 2.9 per cent, impacted mainly by divested operations, compared to the corresponding quarter the previous year. Organic growth excluding exchange rate fluctuations was -4,6 per cent.

The EBITA for the quarter is positively impacted by divested operations in an amount of SEK 233.2 million. Adjusted EBITA, excluding the divestment, amounted to SEK 25.6 million (26.5) and adjusted EBITA margin was 4.8 per cent (4.8). EBITA amounted to SEK 258.8 million (26.5) and the EBITA margin was 48.2 per cent (4.8). Operating profit (EBIT) amounted to SEK 253.5 million (20.0) and the operating margin was 47.2 per cent (3.6).

The quarter's financial income amounted to SEK 1.2 million (1.5) and mainly pertains to currency translations. Financial expenses amounted to SEK 19.2 million (2.5) and are mainly attributable to increased interest expenses, the buy-out of minority interests and negative currency translations mainly in NOK. Interest expenses were impacted by IFRS 16 Leases by SEK -1.2 million (-0.3). The quarter's tax expense amounted to SEK 4.5 million (-6.1).

The profit after tax for the quarter was SEK 240.0 million (12.9). Earnings per share before dilution amounted to SEK 12.19 (0.71) and SEK 11.92 (0.71) after dilution. For the income statement report, see page 23.

Revenues and profits, remaining operations

Net sales increased to SEK 488.8 million (452.8), an increase of 8.0 per cent compared to the year-before period. EBITA increased to SEK 20.6 million (20.0) and the EBITA margin was 4.2% (4.4). Net financial items amounted to an expense of SEK 17.7 million (0.8) affected by an expense of SEK 16 million for the translation of cash and cash equivalents in NOK and an expense of SEK 4.2 million for the buy-out of minority interests. Earnings per share before dilution amounted to SEK 0.08 (0.40) and after dilution to SEK 0.07 (0.40). For the income statement report, see page 16.

SALES BY COUNTRY Q3, %

NET SALES, SEK MILLION

EBITA, SEK MILLION*

^*EBITA and the EBITA margin for Q3 2020 are adjusted for non-recurring costs and are thereby adjusted EBITA and adjusted EBITA margin.

KEY PERFORMANCE INDICATORS, INCLUDING EMBRIQ TO 31 AUG	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales, SEK million	537.3	553.4	1,977.5	1,800.30	2,557.1
Organic growth excluding exchange rate effects, %	-4.6	6.5	0.5	3.5	8.2
Adjusted EBITA, SEK million	25.6	26.5	113.4	97.5	138.0
Adjusted EBITA margin, %	4.8	4.8	5.7	5.4	5.4
EBITA, SEK million	258.8	26.5	328.2	97.5	138.0
EBITA margin, %	48.2	4.8	16.6	5.4	5.4
Operating profit/loss (EBIT), SEK million	253.5	20.0	308.9	80.2	103.5
Profit/loss after tax, SEK million	240.0	12.9	276.1	57.1	77.6
Earnings per share before dilution, SEK	12.19	0.71	14.02	3.16	4.19
Earnings per share after dilution, SEK	11.92	0.71	13.72	3.16	4.16
Cash flow from operating activities, SEK million	7.4	-1.7	225.2	174.5	245.9
Net debt/EBITDA rolling 12 mo.**), multiple	0.1	2.3	0.1	2.3	1.5

** Net debt/EBITDA rolling 12 mos. excl. IFRS 16 Leases is 0.0.

JANUARY—SEPTEMBER 2020

Revenues and profits, including Embriq Jan-Aug

On 1 September, Rejlers divested 100% of the shares in Rejlers Embriq AS and Rejlers Embriq AB for a cash purchase consideration of NOK 400 million on a cash-free and debt-free basis. The capital gain on the sale amounted to SEK 233.2 million; see page 18 for more information.

Sales and earnings were negatively impacted by the COVID-19 pandemic during the period. Rejlers has implemented a number of changes to manage the situation, such as short-term lay-offs, permanent terminations, cost savings and a rapid adjustment to working from home.

Rejlers has received government assistance linked to COVID-19, mainly in Finland and Sweden. The Swedish grants from the Swedish Agency for Economic and Regional Growth are recognised as other income, which amounts to SEK 7.8 million. Other grants, such as reduced employer's contributions and sickness benefits, amount to SEK 2.9 million. The Finnish grants for short-term lay-offs are paid by Finnish authorities directly to those laid off and thereby entail reduced personnel costs. During the period, around 3 per cent of the number of full-year employees were temporarily laid off.

Net sales increased to SEK 1,977.5 million (1,800.3), an increase of 9.8 per cent compared to the year-before period. Organic growth excluding exchange rate fluctuations was 0.5 per cent.

The EBITA for the period is impacted positively by divested operations in an amount of SEK 233.2 million and negatively by restructuring costs for terminated personnel of SEK 18.4 million. Adjusted EBITA, excluding divestment and restructuring costs, increased to SEK 113.4 million (97.5) and adjusted EBITA margin was 5.7 per cent (5.4). EBITA amounted to SEK 328.2 million (97.5). EBITA margin amounted to 16.6 per cent (5.4). Operating profit (EBIT) amounted to SEK 308.9 million (80.2) and the operating margin was 15.5 per cent (4.5). EBIT was impacted by acquisition expenses of SEK 0.9 million (5.5).

Financial income during the period amounted to SEK 17.8 million (5.8) and relates mainly to currency translations. Financial expenses amounted to SEK 45.6 million (8.9) and are mainly attributable to increased interest expenses, an expense of SEK 16.0 million for currency translations in NOK and an expense of SEK 4.2 million for the buyout of minority interests. Interest expenses were impacted by IFRS 16 Leases by SEK 4.1 million (2.8). The tax expense for the period amounted to SEK -5.0 million (19.9).

The profit after tax for the period was SEK 276.1 million (57.1). Earnings per share before dilution amounted to SEK 14.02 (3.16) and SEK 13.72 (3.16) after dilution. For the income statement report, see page 23.

Revenues and profits, remaining operations

Net sales increased to SEK 1,735.7 million (1,493.3), an increase of 16.2 per cent compared to the year-before period. The period's EBITA was negatively impacted by restructuring costs for terminated personnel, SEK 18.4 million. Adjusted EBITA, excluding restructuring costs, increased to SEK 93.0 million (78.4) and adjusted EBITA margin was 5.4 per cent (5.3). EBITA amounted to SEK 74.6 million (78.4) and the EBITA margin was 4.3 per cent (5.3). Net financial items amounted to an expense of SEK 27.0 million (1.2) affected by an expense of SEK 16 million for the translation of cash and cash equivalents in NOK and an expense of SEK 4.2 million for the settlement of a financial liability to minority interests. Earnings per share before dilution amounted to SEK 1.20 (2.33) and after dilution to SEK 1.17 (2.33). For the income statement report, see page 16.

Cash flow and financial position

Cash flow during the period is strong despite COVID-19. To secure good liquidity, Rejlers has implemented a number of measures, including a lower dividend for a time, an increased overdraft facility of SEK 250 million, which is now reduced to SEK 75 million, temporary postponement of repayment of loans and increased control of accounts receivable. During the period, no bad debt losses arose due to COVID-19 and the assessment and valuation of assets and liabilities are unchanged compared with earlier quarters.

EBITA MARGIN, %*

C A S H F L O W F R O M O P E R A T I N G ACTIVITIES, SEK MILLION

Quarter, left 12-month rolling, right

N U M B E R O F E M P L O Y E E S AT END OF PERIOD

*EBITA and the EBITA margin for Q3 2020 are adjusted for non-recurring costs and are thereby adjusted EBITA and adjusted EBITA margin.

During the period, the Group generated a cash flow from operating activities of SEK 225.2 million (174,5) including IFRS 16 Leases. The cash flow from operating activities is impacted by the translation reduced accounts receivable. Consolidated cash and cash equivalents at the end of the period amounted to SEK 449.1 million, compared with SEK 142.0 million as of 31 December 2019.

Interest-bearing liabilities decreased by SEK 70.8 million since 31 December 2019 to SEK 476.7 million at the end of period; see page 19. Considering IFRS 16 Leases of interest-bearing liabilities, the leasing component amounts to SEK 196.7 million and decreased by SEK 59.6 million compared with 31 December 2019. Current interest-bearing liabilities amount to SEK 73.5 million and non-current liabilities amount to SEK 144.1 million. The distribution between current and non-current liabilities is adapted to achieve an effective interest level.

Net debt amounted to SEK 27.6 million, compared with SEK 405.5 million as of 31 December 2019. Net debt is also affected by the leasing effect; see page 16. The ratio of net debt to EBITDA rolling 12 months amounted to 0.1 at the end of the period compared with 1.5 at 31 December 2019. The ratio of net debt to EBITDA rolling 12 months excluding IFRS 16 Leases is 0.0. The equity/assets ratio amounted to 55.5 per cent compared with 44.2 on 31 December 2019.

Equity per share was SEK 59.10 at the end of the period compared to SEK 47.25 as of 31 December 2019. The Group's overdraft facilities of SEK 75.0 million (150.0) are unutilised.

Investments

Assessed valuations of goodwill and intangible assets considering COVID-19 constitute no risk of impairment.

Investments in property, plant and equipment amounted to SEK 16.9 million (3.5), mainly relating to equipment and IT equipment. Investments in intangible assets, mainly attributable to the development of IT platforms, amounted to SEK 22.8 million (24.1). Investments in subsidiaries and businesses amounted to SEK 24.3 million (251.4). Depreciation/amortisation amounted to SEK 110.8 million (87.7).

Utilisation

The utilisation amounted to 76.4 per cent (76.3).

Employees

At the end of the period, there were 2,211 employees (2,021). There were 2,264 full-year employees (1,902).

Parent Company

Net sales for the Parent Company during the interim period amounted to SEK 26.3 million (27.8) and profit before tax amounted to SEK 176.9 million (loss: 10.2). The capital gain for the divestment of Embriq amounted to SEK 205.8 million.

Seasonal variations

Rejlers is affected by seasonal variations and calendar effects. The respective quarters are relatively comparable over the years, but are affected by minor calendar effects, such as when in time Easter occurs. Sales are normally higher in the first and fourth quarters and lower in the second and third quarter. Similar seasonal variations occur in all geographic markets.

The Share

The total number of shares in Rejlers AB is 19,687,909, of which 1,749,250 Class A shares (ten votes per share) and 17,938,659 Class B shares (one vote per share). In 2019, the Group issued designated convertibles to employees in senior positions. The convertible programmes amount to SEK 48,400,000 with durations of three and five years.

Impact from the COVID-19 pandemic

The COVID-19 pandemic has led to a global economic crisis that affected Rejlers' operations in the third quarter. The effects have been different between different industries. While the impact has been limited in the areas of energy, telecommunications, properties and infrastructure, some of the operations that focus on industry customers have been more negatively impacted. However, there are rays of hope even in this area, as sectors such as Life Science and the Defence Industry have managed better than others.

Rejlers has met the rapidly changed situation in the market with multiple measures to secure profitability. In addition to efforts in new areas and intensified investments in sales, the measures have included cost reductions in a number of areas, temporary short-term lay-offs in the Group of around 3 per cent of the number of full-year employees and terminations of some 70 people. The criterion for the terminations has primarily been that the demand for the services in question has not been deemed to return in the median or long term.

The pandemic has also led to our employees, with the aim of reducing the risk of the spread of infection, rapidly adopting alternative ways of working and meeting remotely. For a company on the leading edge of digitalisation, such as Rejlers, this transition has been able to take place with a minimum impact on the business.

Rejlers' financial position remains stable and the inflow of new business continued during the third quarter. In these uneasy times, it becomes a protection that many of our projects are critical to society and that we have a well-diversified customer portfolio. Today, it cannot be foreseen with certainty what total impact COVID-19 will have, but we are monitoring the development carefully and are ready to take more steps if it becomes necessary as a result of the crisis.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

Rejlers Finland is acquiring Planetcon Oy and thereby strengthening its expertise in structural engineering. Planetcon Oy has around 20 employees and are specialised in expert and developer services in structural engineering.

Rejlers is named to Allbright's Green List. According to the Allbright Foundation's latest gender equality report for 2020, an increasing number of listed companies have no women at all in their senior management teams. Rejlers bucks this trend, and the gender balance in its corporate management has earned it 17th place on Allbright's "green list".

Borgholm Energi has chosen Rejlers as a partner for the modernisation of the company's monitoring system. Rejlers will act as system integrator and be responsible for the introduction of a new Citect SCADA system for automated monitoring and control.

Business overview

Development in Sweden was stable in the third quarter of the year. Rejlers Sweden provided an EBITA of SEK 10.9 million (8.0). In every area, the market was showing a slow recovery in the third quarter. The engineering industry was hit hardest by the decline that followed the COVID-19 pandemic, while the markets were stronger in energy and infrastructure.

The Energy and Communication & Security divisions did better thanks to higher demand and increased investments. Buildings has been impacted by project delays due to uncertainty in the property market in the wake of the pandemic. For Industry, the export and automotive industry have slowly increased their production and demand for our services has thereby increased, but this was from a low level. Rejlers has responded to this development by targeting our business offering to a greater extent at the infrastructure and civil engineering areas, where demand is stable.

Rejlers Sweden met the challenges during the quarter with strategic sales and a focus on areas in energy, digital communication and security. We also adapted our organisation to reduce the overhead costs and thereby increased our competitiveness.

The establishment of the new business areas Life Science and Civil within Industry & Infra has been successful with strong initial development. In Energy, we implemented changes in our organisation with the aim of creating conditions for even greater growth and expansion of the business.

We won strategically important contracts in every area during the quarter. Among them, it can be mentioned that Rejlers is helping one of Sweden's largest power line owners to outfit Stockholm's local grid. We have also been entrusted by Vasakronan to do the project planning for Gothenburg's new landmarks, the Kromet block.

REJLERS SWEDEN EBITA, SEK MILLION*

*EBITA for Q3 2020 is adjusted for non-recurring costs and is thereby adjusted EBITA

KPI	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales, SEK million	261.9	250.1	939.5	848.0	1,196.6
Adjusted EBITA, SEK million	10.9	8.0	57.1	45.7	62.1
Adjusted EBITA margin, %	4.2	3.2	6.1	5.4	5.2
EBITA, SEK million	10.9	8.0	47.2	45.7	62.1
EBITA margin, %	4.2	3.2	5.0	5.4	5.2
Operating profit/loss, SEK million	10.1	6.5	42.9	41.1	55.1

REJLERS FINLAND EBITA, SEK MILLION*

Rejlers' earnings in Finland in the third quarter of the year were weak, with a continued difficult situation in the market. EBITA was SEK 8.2 million (15.5).

Rejlers' customers in Industry were impacted differently by the on-going COVID-19 pandemic. The crisis had the greatest impact on the petrochemical area, where Rejlers is one of the largest providers of technical consulting services in Finland. Here, the effect has been double as the customers have been impacted both by the pandemic itself and by falling oil prices in its wake.

Within Buildings, Energy and Infrastructure, the development was stable despite the on-going pandemic. The market for Energy and Infrastructure is characterised by multi-year planning and long-term projects that have not been impacted by the pandemic.

Within Buildings, the decline in the market that was already noticeable in the second half of 2019 continued, but the pandemic has not yet affected Rejlers' business volumes in Finland in this area. Thanks to good advanced planning in terms of the changed market and greater focus on sales, tenders and project work, Rejlers Finland has been able to maintain the order levels at a constant level in Buildings. During the summer, the market trend towards a sharply decreased number of building permits continued, leading to greater competition.

An important strategic acquisition was the purchase of SitoWise's telecom operations on 1 September 2020. The acquisition doubles Rejlers' telecom operations in one swoop and strengthens our service offering linked to maintenance, design and construction of telecommunications networks. Rejlers is further strengthening its position for all of the opportunities being opened up by the revolutionary transition to 5G.

Notable among important new contracts is an agreement within EPC (engineering, procurement & construction) with the client Aurora. The deal is proof that the work to strengthen Rejlers' offering in EPC and EPCM services, which includes the acquisition of operations from Neste Engineering Solutions at the end of 2019, is beginning to yield results.

Quarter, left 12-month rolling, right

*EBITA for Q3 2020 is adjusted for non-recurring costs and is thereby adjusted EBITA

KPI	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales, SEK million	189.8	166.4	680.8	523.8	780.6
Adjusted EBITA, SEK million	8.2	15.5	36.8	48.6	72.6
Adjusted EBITA margin, %	4.3	9.3	5.4	9.3	9.3
EBITA, SEK million	8.2	15.5	32.3	48.6	72.6
EBITA margin, %	4.3	9.3	4.7	9.3	9.3
Operating profit/loss, SEK million	4.1	14.7	20.4	46.3	57.3

REJLERS NORWAY, INCLUDING EMBRIQ TO 31 AUG EBITA, SEK MILLION

Rejlers' earnings in Norway in the third quarter were strong. For Energy, the market was stable, while a market decline can be noted for Buildings, with fewer inquiries and some postponed projects. EBITA for Rejlers Norway for the quarter amounted to SEK 4.6 million (6.4), where Embriq is no longer consolidated as of September following the divestment.

In connection with the divestment of Embriq, Rejlers Norway has gone through a major change. A partially new management team has been appointed through internal recruitment. Petter Arnesen has been named the new CEO and Helge Finanger is continuing as the HR Director. Tone Søfting is the new Head of Energy while Tommy Støa is the new acting Head of Buildings.

Rejlers Norway will now focus on technical consulting services, like the rest of the Group. The new organisation will be build with clear growth targets for both new and existing market areas.

Notable among assignments won in the third quarter, JM Norway is continuing to make suborders from their framework agreement with Buildings. Rejlers also won the contract to do the electrical design for Norway's first Radisson RED hotel at Økern Portal and Telenor renewed its agreement for the quality control of 4G and 5G documentation.

12-month rolling, right

KPI	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales, SEK million	88.2	144.1	367.8	459.1	633.1
EBITA, SEK million	4.6	6.4	30.0	24.3	31.6
EBITA margin, %	5.2	4.4	8.2	5.4	5.0
Operating profit/loss, SEK million	4.1	5.4	27.8	19.3	25.4

Embriq was divested on 1 September 2020, which affects the comparative figures

Rejlers offering

Rejlers AB is one of the largest technical consulting firms in the Nordic region. Our service offerings are founded on continuous learning and knowledge sharing.

Rejlers' qualified engineers offer both cutting-edge expertise and breadth of knowledge. We are a valuable partner, one which helps our customers meet their challenges and find new opportunities.

As the little big consulting company, Rejlers combines the best of both worlds. Like larger actors, we have extensive depth and breadth in our expertise, but at the same time we offer fast decision-making pathways and extensive adaptive ability. Our goal is to always deliver the maximal business advantage to our customers.

We welcome the most complex questions and handle them in a way that adds new perspectives and value for our customers. Our most valuable asset is the learning mindset of our employees. This means that we never stop learning, and that we are constantly exchanging our knowledge.

We offer services to customers in the Industry, Infrastructure, Energy and Buildings sectors. Based on our classic engineering background, over the years we have expanded with expertise in digital services, safety and operations. We provide all this core expertise in customised solutions for customers in all four sectors.

INDUSTRY

We help customers with everything from complete solutions for new products and systems to detail design, project management, streamlining and process automation, and the digitisation of physical stores. Projects related to AR/VR, digital twins, Smart Industry and IoT are particularly current.

INFRASTRUCTURE

We work extensively in the infrastructure sector – for example, with modernisation, planning and system development for railways, local rail transport, power grids, telecommunications, airports, road infrastructure and ports, as well as with urban development services related to land, water, roads and the environment. The electrification of various kinds of infrastructure is particularly current.

ENERGY

We offer services and smart digital solutions to customers in all stages of the energy supply chain; the network companies are our largest customers. For example, we help to modernise, streamline and automate existing facilities and build new ones. Extra current right now is the renovation of power grids as a part of the energy transition to fossil-free electricity production.

BUILDINGS

We create value for construction and property actors in the fields of renovation, new production, monitoring, inspection and early planning. Important areas include building automation and energy streamlining. With our broad expertise, we can also contribute to the creation of smart buildings. Extra current right now is the digitalisation of properties.

Q3. INTERIM REPORT REJLERS. 11 JANUARY—SEPTEMBER 2020.

Other information

Accounting policies

This interim report has been prepared for the Group in accordance with IAS 34 Interim Reporting and RFR 1, Supplementary Accounting Rules for Groups. The Parent Company's reports are prepared in accordance with the Annual Accounts Act and RFR 2, Accounting for Legal Entities. The same accounting policies were applied as in the most recent annual report for both the Group and the Parent Company.

Risks and uncertainty factors

Through its operations, the Group is subject to various financial risks, such as market risk (comprehensive foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management involves striving for minimal unfavourable effects on financial position and performance. The Group's business risks and risk management as well as financial risks are described in detail in the annual report for 2019. During the interim period, COVID-19 constituted a risk due to lower demand in certain sectors, which impacted Rejlers in the third quarter of 2020. COVID-19 does not change the description of the Group's risks and their handling. Read more about how COVID-19 has impacted Rejlers and the handling of the risks on page 7, under the heading "Impact from the COVID-19 pandemic".

Business combinations

DURING THE PERIOD, THE FOLLOWING ACQUISITIONS WERE CARRIED OUT

Period	Segment	Annual net sales	FTE
Jan-Sept	NO, FI	SEK 71 MILLION	58

ACQUIRED COMPANY'S NET ASSETS AT THE TIME OF THE ACQUISITION

SEK million
Non-current assets	1.0
Financial assets	0.0
Accounts receivable, other receivables	6.8
Cash and cash equivalents	2.2
Accounts payable, loans and other liabilities	-5.0
Net identifiable assets and liabilities	5.1
Goodwill	10.0
Customer value	9.4
Deferred tax	-0.2
Purchase sum	24.3
Transaction costs, deduction	0.0
Cash and cash equivalents (acquired)	-2.2
Net outflow, Group	22.1

Delta-KN Oy

Rejlers' solid expertise and services in electrical engineering for building services were supplemented with an acquisition of Delta-KN Oy, which was signed on 20 February 2020. Delta-KN Oy is an electrical engineering company in the construction sector. The acquisition is a part of Rejlers' growth strategy and means that the company is strengthening its offering in Buildings in Finland. The knowledge of the people who are being transferred to Rejlers will be immediately offered to the customers. The company was consolidated as of 1 March 2020 and expects full-year sales of around EUR 0.5 million with a margin of 5%.

Smarthub AS in Norway.

Rejlers acquired Smarthub AS in Norway. SmartHub AS provides the collection, quality control, distribution and handling of data from around 153,000 smart electricity meters for ten grid companies in Møre and Romsdal, Norway. The agreement signed means that Rejlers will take over 100% of the shares in the company, including the operations agreements the company has with the ten grid companies. Rejlers is thereby strengthening its position as a leading independent service provider of IoT infrastructure (Internet of Things) in the Nordic region. The company was consolidated as of 1 January 2020 and expects full-year sales of around NOK 14 million with a margin of 16%. The company was divested in connection with the divestment of Embriq on 1 September 2020.

RR Management Oy

Rejlers acquired the rail management business within RR Management Oy. RR Management Oy is a company that specialised in construction and management. Through the acquisition, Rejlers will be able to develop the rail regulation services. The asset acquisition occurred in January 2020 and expects full-year sales of around EUR 1.1 million with a margin of 20%.

Sitowise OY

Rejlers has acquired the telecom operations in Sitowise. Through the acquisition, Rejlers' telecom division in Finland is doubling in size and strengthening the offering of services related to maintenance, design and construction of telecom networks. The acquisition means that Rejlers takes over business contracts, customers and 40 former employees within Sitowise's telecom operations. The asset acquisition occurred in on 1 September 2020 and is expected to provide full-year sales of around SEK 40 million with a margin of 15%.

Divested operations

During the quarter, Rejlers divested 100% of the shares in Rejlers Embriq AS and Rejlers Embriq AB for a cash purchase consideration of NOK 400 million on a cash-free and debt-free basis. The capital gain on the sale amounted to SEK 233.2 million; see page 18 for more information.

Related party transactions

Related party transactions take place on market-based terms.

Pledged assets and contingent liabilities

Pledged assets and contingent liabilities are essentially unchanged compared with the previous year.

Future-oriented information

All future-oriented statements in this report are based on the company's best assessment at the time of publication. As with all forecasts, such assumptions contain risks and uncertainties that may mean that the actual outcome is different than the expected development.

Nomination Committee

In accordance with the resolution by the Annual General Meeting on 22 April 2020, the Nomination Committee shall consist of representatives for the three largest shareholders with voting rights on the last banking day in August of each year. The Annual General Meeting resolved to provide a mandate to the Chairman of the Board to annually contact the three largest shareholders by votes, which each appoint a representative to the Nomination Committee for the period until the next Annual General Meeting has been held or when necessary until a new Nomination Committee has been appointed.

The Nomination Committee for Rejlers 2021 Annual General Meeting is comprised of: Kent Hägglund, Chairman, represents Peter Rejler, Lisa Rejler represents Jan Rejler and Mats Andersson represents Nordea Fonder.

The undersigned provides assurance that this interim report provides an accurate overview of the operations, position and earnings of the Group and the Parent Company, and that it also describes the principal risks and sources of uncertainty faced by the Parent Company and the companies within the Group.

Stockholm, 23 October 2020 Rejlers AB (publ).

Viktor Svensson President and CEO

The information in this interim report is such that Rejlers AB (publ) is obliged to publish under the EU Market Abuse Directive and the Swedish Securities Market Act. The information was provided by the above contact person for publication on 23 October 2020, at 14.00 CET. This report is also available in Swedish. The English version is a translation of the Swedish original. If there are any differences, the Swedish version takes precedence.

Auditor's review report

Introduction

We have conducted a general review of the interim report for Rejlers AB (publ) for the period 1 January 2020 to 30 September 2020. The Board of Directors and the CEO are responsible for preparing and presenting this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express our conclusion about this interim report, based on our general review.

Focus and scope of the general review

We have conducted our general review in accordance with the International Standard on Review Engagements ISRE 2410 Review of interim financial information performed by the independent auditor of the entity. A general review consists of making enquiries, in the first instance with individuals who are responsible for financial and accounting issues, for carrying out analytical reviews and for implementing other general review procedures. A general review has a different approach and is substantially less in scope than an audit conducted in accordance with ISA and good auditing practice in general. The review procedures that are implemented in conjunction with a general review do not enable us to acquire such assurance that we are aware of all important circumstances that might have been identified had an audit been carried out. The expressed conclusion based on a general review does not therefore have the same level of assurance as an expressed conclusion based on an audit.

Concluding statement

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

Stockholm, 23 October 2020 Deloitte AB

Johan Telander Authorised Public Accountant

Group

C O N D E N S E D I N C O M E S T A T E M E N T,

Amounts SEK million	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales	488.8	452.8	1,735.7	1,493.3	2,136.7
Other income	2.7	0.2	9.0	2.9	4.0
Personnel costs1)	-314.7	-286.8	-1,183.7	-988.3	-1,413.7
Other external expenses	-131.8	-130.9	-414.8	-377.9	-538.0
Participations in associated company earnings	1.0	0.3	1.9	1.0	1.2
EBITDA	46.0	35.6	148.1	131.0	190.2
Depreciation/amortisation and impairment of non-current assets2)	-25.4	-15.6	-73.5	-52.6	-76.8
EBITA	20.6	20.0	74.6	78.4	113.4
Acquisition-related items3)	-5.2	-6.4	-19.0	-16.9	-33.9
Operating profit/loss (EBIT)	15.4	13.6	55.6	61.5	79.5
Net financial items4)	-17.7	-0.8	-27.0	-1.2	-4.5
Profit/loss after net financial items	-2.3	12.8	28.6	60.3	75.0
Tax	3.8	-5.6	-5.0	-18.2	-15.4
Profit for the period from remaining operations	1.5	7.2	23.6	42.1	59.6
Profit for the period from divested operations	238.5	5.7	252.5	15.0	18.0
Total remaining and divested operations	240.0	12.9	276.1	57.1	77.6
Attributable to the Parent Company's shareholders	240.0	12.9	276.1	57.1	77.6
Attributable to shareholders without a controlling influence	-	-	-	-	-
Average number of shares	19,687,909	18,087,909	19,687,909	18,087,909	18,487,909
Number of shares at end of period	19,687,909	18,087,909	19,687,909	18,087,909	19,687,909
Number of shares after dilution	20,131,231	18,087,909	20,131,231	18,087,909	19,944,751
Earnings per share before dilution, SEK, remaining operations	0.08	0.40	1.20	2.33	3.50
Earnings per share after dilution, SEK, remaining operations	0.07	0.40	1.17	2.33	3.42

1) Includes restructuring costs of SEK 18.4 million

2) Impairment and depreciation of property, plant and equipment and amortisation of intangible assets excluding

goodwill and those related to acquisitions. 3) Impairment and amortisation of goodwill and intangible assets related to acquisitions, revaluation of supplemental

purchase amounts as well as acquisition and integration expenses.

4) Net financial items impacted by the translation of cash and cash equivalents in NOK by an expense of

SEK 16 million and an expense of SEK 4.2 million for the buy-out of minority interests

CONDENSED STATEMENT OF COMPREHENSIVE INCOME

Amounts SEK million	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Profit for the period	240.0	12.9	276.1	57.1	77.6
Items that may be reclassified to the income statement
Translation differences of foreign operations, net after tax	4.9	1.3	-13.3	18.2	13.3
Items that will not be reclassified to the income statement
Revaluation of net pension provisions	-	-	-	-	1.3
TOTAL OTHER COMPREHENSIVE INCOME	4.9	1.3	-13.3	18.2	14.6
COMPREHENSIVE INCOME FOR THE PERIOD	244.9	14.2	262.8	75.3	92.2

CONDENSED BALANCE SHEET

Amounts SEK million	30 Sept 2020	30 Sept 2019	31 Dec 2019
Assets
Non-current assets
Goodwill	542.0	568.8	565.6
Other intangible assets	210.7	271.2	271.2
Property, plant and equipment	29.3	15.6	20.3
Rights of use	202.1	215.9	272.0
Other non-current assets	60.0	75.6	68.3
Total non-current assets	1,044.1	1,147.1	1,197.4
Current assets
Current receivables	601.8	730.1	764.2
Cash and cash equivalents	449.1	78.5	142.0
Total current assets	1,050.9	808.6	906.2
TOTAL ASSETS	2,095.0	1,955.7	2,103.6
Equity and liabilities
Equity attributable to shareholders in the Parent Company	1,163.4	765.2	930.2
Total equity	1,163.4	765.2	930.2
Non-current liabilities
Provision for pensions	28.4	33.7	28.4
Interest-bearing non-current liabilities	267.4	260.4	303.7
Other non-current liabilities	48.3	116.0	118.3
Total non-current liabilities	344.1	410.1	450.4
Current liabilities
Interest-bearing current liabilities	181.0	307.9	215.4
Other current liabilities	406.5	472.5	507.6
Total current liabilities	587.5	780.4	723.0
TOTAL LIABILITIES AND EQUITY	2,095.0	1,955.7	2,103.6

CONDENSED CHANGES IN EQUITY

Amounts SEK million	30 Sept 2020	30 Sept 2019	31 Dec 2019
Equity at start of period	930.2	707.3	707.3
Comprehensive income for the period	262.8	75.3	92.2
Cash issue private placement	-	-	147.1
Conversion rights for convertible debt instruments	-	0.7	1.7
Changes attributable to transactions with the owners
Dividends	-29.5	-18.1	-18.1
Total changes attributable to transactions with the owners	-29.5	-18.1	-
Equity at end of period		765.2	930.2
Attributable to the Parent Company's shareholders	1,163.4	765.2	930.2
Total	1,163.4	765.2	930.2

CONDENSED CASH FLOW STATEMENT, INCLUDING EMBRIQ TO 31 AUG1 )

Amounts SEK million	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Cash flow from operating activities before changes in operating capital and tax paid	12.1	43.6	127.7	170.2	237.1
Tax paid	-1.1	-11.4	-9.8	-24.3	-20.6
Change in working capital	-3.6	-33.9	107.3	28.6	29.4
Cash flow from operating activities	7.4	-1.7	225.2	174,5	245.9
Cash flow from investing activities	300.6	-258.9	256.1	-279.0	-317.6
Cash flow from financing activities	-80.8	197.9	-174.2	143.8	176.9
Cash flow for the period	227.2	-62.7	307.1	39.3	105.3
Cash and cash equivalents at start of period	221.3	140.6	142.0	38.2	38.2
Exchange rate differences in cash and cash equivalents	0.6	0.6	-	1.0	-1.5
Cash and cash equivalents at end of period	449.1	78.5	449.1	78.5	142.0
1) Cash flow including IFRS 16 Leases
Divested operations	July-Sept 2020	July-Sept 2019	Jan-Sept 2020	Jan-Sept 2019	Jan-Dec 2019
Cash flow from operating activities	1.5	-5.1	45.0	21.2	49.2
Cash flow from investing activities	336.2	-6.1	330.9	-17.9	-23.7
Cash flow from financing activities	-3.2	-6.5	-18.1	-18.1	-24.3

PROFIT/LOSS FROM DISCONTINUED OPERATIONS 2 )

Amounts SEK million	July–Aug 2020	July–Sept 2019	Jan–Aug 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales	48.4	100.6	241.7	306.9	420.4
Other income	2.2	-	4.3	-	0.5
Personnel expenses	-23.1	-39.1	-101.7	-116.7	-153.0
Other external expenses	-13.2	-48.6	-86.6	-135.9	-189.2
Participations in associated company earnings	-	-	-	-	-
EBITDA	14.3	12.9	57.7	54.3	78.7
Depreciation/amortisation and impairment of non-current assets	-9.2	-6.3	-37.3	-35.2	-54.2
EBITA	5.1	6.6	20.4	19.1	24.5
Acquisition-related items	-0.1	-0.2	-0.3	-0.4	-0.5
Operating profit/loss (EBIT)	5.0	6.4	20.1	18.7	24.0
Net financial items	-0.4	-0.3	-0.8	-2.0	-2.9
Profit/loss after net financial items	4.6	6.1	19.3	16.7	21.1
Tax	0.7	-0.4	-	-1.7	-3.1
Net profit/loss before capital gains	5.3	5.7	19.3	15.0	18.0
Capital gains upon the sale of Embriq including translation reserve	233.2	-	233.2	-	-
PROFIT FOR THE PERIOD	238.5	5.7	252.5	15.0	18.0

2) Embriq was divested on 1 September 2020, which affects the comparative figures

NET DEBT

Amounts SEK million	30 Sept 2020	30 Sept 2019	31 Dec 2019
Non-current liabilities, credit institutions	97.5	128.7	101.9
Convertible debentures	46.6	23.3	46.3
Non-current lease liability	123.2	108.4	155.5
Current liabilities, credit institutions	107.5	198.3	114.6
Current lease liability	73.5	109.6	100.8
Pension provisions	28.4	33.7	28.4
Cash and cash equivalents	-449.1	-78.5	-142.0
Total	27.6	523.5	405.5

ACQUISITION-RELATED ITEMS

Amounts SEK million	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Impairment and amortisation of goodwill and intangible assets related to acquisitions, remaining operations	-5.2	-3.1	-18.1	-9.4	-15.8
Profit/loss from divestment of subsidiaries and operations	-	-	-	-2.0	-2.5
Integration expenses	-	-	-	-	-9.5
Acquisition expenses	-	-3.3	-0.9	-5.5	-6.1
Total	-5.2	-6.4	19.0	-16.9	-33.9

Parent Company

CONDENSED INCOME STATEMENT, REMAINING OPERATIONS

Amounts SEK million	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Sales	8.5	9.9	26.3	27.8	37.1
Personnel expenses	-3.0	-6.3	-24.9	-24.3	-36.4
Other external expenses	-3.8	-7.3	-15.8	-20.1	-27.1
Depreciation	-0.4	-	-1.1	-0.1	-0.1
Participations in associated company earnings	0.1	-	0.5	0.4	0.4
Operating profit/loss	1.4	-3.7	-15.0	-16.3	-26.1
Net financial items1)	190.1	-0.4	191.9	6.1	33.7
Profit/loss after net financial items	191.5	-4.1	176.9	-10.2	7.6
Appropriations	-	-	-	-	-
Tax	7.3	-	7.3	-	0.9
Profit/loss after tax	198.8	-4.1	184.2	-10.2	8.5

1) SEK 205.8 million pertains to capital gains from the sale of the Embriq companies on 1 September 2020

The Parent Company has no items to report in other comprehensive income, which is why this financial statement is not included.

CONDENSED BALANCE SHEET

Amounts SEK million	30 Sept 2020	30 Sept 2019	31 Dec 2019
Assets
Non-current assets
Property, plant and equipment	3.7	2.5	3.3
Financial assets1)	386.6	515.7	522.7
Total non-current assets	390.3	518.2	526.0
Current assets
Current receivables	181.1	344.2	377.4
Cash and cash equivalents	424.8	41.0	94.1
Total current assets	605.9	385.2	471.5
TOTAL ASSETS	996.2	903.4	997.5
Equity and liabilities
Equity	720.6	399.2	566.0
Non-current liabilities	146.5	213.8	210.0
Current liabilities	129.1	290.4	221.5
TOTAL LIABILITIES AND EQUITY	996.2	903.4	997.5

Segment overview

Amounts in SEK million, remaining operations	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales
Sweden	261.9	250.1	939.5	848.0	1,196.6
Finland	189.8	166.4	680.8	523.8	780.6
Norway	39.8	43.5	126.1	152.1	212.7
Group wide	-2.7	-7.2	-10.7	-30.6	-53.2
Consolidated total	488.8	452.8	1,735.7	1,493.4	2,136.7
Adjusted EBITA
Sweden	10.9	8.0	57.1	45.7	62.1
Finland	8.2	15.5	36.8	48.6	72.6
Norway	-0.4	-0.2	9.6	5.1	7.0
Group wide	1.9	-3.3	-10.5	-21.0	-28.3
Consolidated total	20.6	20.0	93.0	78.4	113.4
Adjusted EBITA margin, %
Sweden	4.2	3.2	6.1	5.4	5.2
Finland	4.3	9.3	5.4	9.3	9.3
Norway	0.0	0.0	7.6	3.4	3.3
Consolidated total	4.2	4.4	5.4	5.3	5.3
EBIT
Sweden	10.1	6.5	42.9	41.1	55.1
Finland	4.1	14.7	20.4	46.3	57.3
Norway	-0.4	-1.0	7.6	0.6	1.4
Group wide	-1.6	-6.6	-15.3	-26.5	-34.3
Consolidated total	15.4	13.6	55.6	61.5	79.5
Net financial items	-17.7	-0.8	-27.0	-1.2	-4.5
Profit/loss before tax	-2.3	12.8	28.6	60.3	75.0
Number of employees
Sweden	1,038	1,025	1,038	1,025	1,109
Finland	1,052	715	1,052	715	994
Norway	112	106	112	106	110
Group wide	9	11	9	11	10
Consolidated total	2,211	1,857	2,211	1,857	2,223
Growth Q3 2020, %, including Embriq July-Aug	Total	Divested	Acquired	Currency effect	Organic
Sweden	4.7	-	6.8	-	-2.1
Finland	14.1	-	28.3	-4.2	-10.0
Norway	-38.8	-26.6	-	-6.5	-5.7
Consolidated total	-2.9	-6.9	11.1	-2.5	-4.6
Growth 2020, accumulated, %, including Embriq Jan-Aug	Total	Divested	Acquired	Currency effect	Organic
Sweden	10.8	-	8.6	-	2.2
Finland	30.0	-	35.6	-0.1	-5.5
Norway	-19.9	-8.3	-	-7.0	-4.6
Consolidated total	9.8	-2.1	13.4	-2.0	0.5

Key performance indicators

Beginning in the second quarter of 2016, Rejlers has applied the new European Securities and Markets Authority (ESMA) guidelines for Alternative Performance Measures. In brief, an alternative performance measure is a financial measure over historical or future earnings trends, financial position or cash flow that are not defined or specified in IFRS. To support the analysis by company management and other stakeholders of the Group's development, Rejlers presents certain key performance indicators that are not defined in IFRS. Company management believes that this information facilitates an analysis of the Group's development. These additional measurements are supplementary information to IFRS and do not replace key performance indicators defined in IFRS. Rejlers' definitions of measurements not defined in IFRS may differ from other companies' definitions. All of Rejlers' definitions are included below. Calculations of key performance indicators that cannot be reconciled against new items in the income statement and balance sheet are found on the company's website, www.rejlers.com.

	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
IFRS key performance indicators
Earnings per share before dilution, SEK, remaining operations	0.08	0.40	1.20	2.33	3.50
Earnings per share after dilution, SEK, remaining operations	0.07	0.40	1.17	2.33	3.42
Earnings per share before dilution, SEK	12.19	0.71	14.02	3.16	4.19
Earnings per share after dilution, SEK	11.92	0.71	13.72	3.16	4.16
Average number of shares	19,687,909	18,087,909	19,687,909	18,087,909	18,487,909
Number of shares at end of period	19,687,909	18,087,909	19,687,909	18,087,909	19,687,909
Operating key performance indicators, including Embriq to 31 Aug
Utilisation, %	75.1	74.6	76.4	76.3	76.8
Adjusted EBITA, SEK million	25.6	26.5	113.4	97.5	138.0
Adjusted EBITA margin, %	4.8	4.8	5.7	5.4	5.4
EBITA, SEK million	258.8	26.5	328.2	97.5	138.0
EBITA margin, %	48.2	4.8	16.6	5.4	5.4
Operating profit/loss (EBIT), SEK million	253.5	20.0	308.9	80.2	103.5
Sales per full-time employee, SEK thousand	248	289	873	928	1,278
Operating profit/loss per full-time employee, SEK thousand	117	10	136	41	52
Number of full-time employees	2,168	1,917	2,264	1,902	2,001
Number of employees at end of period	2,211	2,021	2,211	2,021	2,393
Alternative performance measures, including Embriq to 31 Aug
Acquired growth, %	11.1	1.0	13,4	1.5	3.9
Currency effect, %	-2.5	0.2	-2.0	0.4	0.1
Organic growth, %	-4,6	6.5	0.5	3.5	8.2
Depreciation/amortisation of acquisition-related items, SEK million	-5.3	-3.2	-19.3	-9.8	-16.4
Net indebtedness, SEK million	27.6	523.5	27.6	523.5	405.5
Net debt/EBITDA, R12, times	0.1	2.3	0.1	2.3	1.5
Equity/assets ratio, %	55.5	39.1	55.5	39.1	44.2
Equity per share at the end of the period, SEK	59.10	42.3	59.10	42.3	47.25

CONDENSED INCOME STATEMENT, INCLUDING EMBRIQ TO 31 AUG

Amounts SEK million	July–Sept 2020	July–Sept 2019	Jan–Sept 2020	Jan–Sept 2019	Jan–Dec 2019
Net sales	537.3	553.4	1,977.5	1,800.3	2,557.1
Other income	4.9	0.2	13.3	2.9	4.6
Personnel costs1)	-337.9	-325.9	-1,285.4	-1,105.1	-1,566.7
Other external expenses	-145.1	-179.5	-501.5	-513.8	-727.3
Participations in associated company earnings	1.0	0.3	1.9	1.0	1.2
Capital gains regarding divested operations	233.2	-	233.2	-	-
EBITDA	293.4	48.5	439.0	185.3	268.9
Depreciation/amortisation and impairment of non-current assets2)	-34.6	-22.0	-110.8	-87.8	-130.9
EBITA	258.8	26.5	328.2	97.5	138.0
Acquisition-related items3)	-5.3	-6.5	-19.3	-17.3	-34.5
Operating profit/loss (EBIT)	253.5	20.0	308.9	80.2	103.5
Net financial items4)	-18.0	-1.0	-27.8	-3.2	-7.3
Profit/loss after net financial items	235.5	19.0	281.1	77.0	96.2
Tax	4.5	-6.1	-5.0	-19.9	-18.6
PROFIT FOR THE PERIOD	240.0	12.9	276.1	57.1	77.6
Attributable to the Parent Company's shareholders	240.0	12.9	276.1	57.1	77.6
Attributable to shareholders without a controlling influence	-	-	-	-	-
Average number of shares	19,687,909	18,087,909	19,687,909	18,087,909	18,487,909
Number of shares at end of period	19,687,909	18,087,909	19,687,909	18,087,909	19,687,909
Number of shares after dilution	20,131,231	18,087,909	20,131,231	18 ,087,909	19,944,751
Earnings per share before dilution, SEK	12.19	0.71	14.02	3.16	4.19
Earnings per share after dilution, SEK	11.92	0.71	13.72	3.16	4.16

1) Includes restructuring costs of SEK 18.4 million

2) Impairment and depreciation of property, plant and equipment and amortisation of intangible assets excluding

goodwill and those related to acquisitions.

3) Impairment and amortisation of goodwill and intangible assets related to acquisitions, revaluation of supplemental purchase amounts and gains/losses in the divestment of subsidiaries and operations, as well as acquisition and integration expenses.

4) Net financial items impacted by the translation of cash and cash equivalents in NOK by an expense of SEK 16 million and an expense of SEK 4.2 million for the buy-out of minority interests

Q3. INTERIM REPORT REJLERS. 23 JANUARY—SEPTEMBER 2020.

REJLERS AB (PUBL)

Corp. ID no. 556349-8426 | Box 30233 | SE-104 25 Stockholm Tel +46-771-78 00 00 | Fax +46-8-654 33 39 | www.rejlers.com/se

CALENDAR

Year-end Report January-December 2020	5 February 2021
Interim Report January-March	22 April 2021
Annual General Meeting	22 April 2021
Interim Report April-June	15 July 2021
Interim Report July-September	26 Oct 2021
Year-end Report January-December 2021	3 February 2022

FOR MORE INFORMATION, PLEASE CONTACT

Viktor Svensson, President and CEO Tel. +46-70-657 20 26 e-mail: viktor.svensson@rejlers.se

Anna Jennehov, CFO Tel. +46-73-074 06 70 e-mail: anna.jennehov@rejlers.se