Traction

Quarterly Report • Oct 16, 2019

Interim Report January - September 2019

Period July - September

• The result after taxes amounted to MSEK −80 (141), distributed as follows:
  • o Active holdings, listed, MSEK −116 (105).
  • o Active holdings, unlisted, MSEK 0 (8).
  • o Financial investments MSEK 36 (28).
• Earnings per share amounted to SEK −5.40 (9.52).
• The net asset value per share decreased by 3 percent adjusted for dividend paid.
• The return on listed active holdings amounted to approximately −11 percent.

Period January - September

• Profit after taxes amounted to MSEK 261 (286), distributed as follows:
  • o Active holdings, listed, MSEK 103 (198).
  • o Active holdings, unlisted, MSEK 1 (−8).
  • o Financial investments MSEK 162 (102).
• Earnings per share amounted to SEK 17.66 (19.32).
• The return on listed active holdings amounted to approximately 9 percent.
• The net asset value per share amounted to SEK 192 (178) per share.
• The net asset value per share increased by 10 (11) percent adjusted for dividend paid.

Events after the end of the period under review

• The change in value, including dividend income on listed holdings since 30 September, amounts to MSEK 3, as of 15 October 2019.

Traction in brief

Traction is an investment company with active ownership interest in listed and unlisted small- and medium-sized companies. Traction is also engaged in investment activities for the purpose of obtaining a good yield on the Company's capital through financial investments, mainly in other listed companies and interest-bearing assets. Traction's role as owner is based on an active and long-term engagement in close co-operation with other active owners, entrepreneurs and corporate management groups. Traction does not focus on singular industries. Traction instead is engaged in development and transformation work applicable to all companies intending to prioritize business sense, a long-term approach and sound business principles. Traction's shares are traded on NASDAQ Stockholm (the Mid Cap list). More information is available at www.traction.se.

Traction's net asset value

Holding	Number of	Price	Percentage	Percentage	Market	Percentage	SEK/
	shares, thousands	per share	of capital	of votes	value MSEK	of total	share
Listed active holdings
BE Group	2,903	42.00	22%	22%	122	4%	8
Drillcon	24,000	5.60	54%	54%	134	5%	9
Duroc	3,752	24.00	10%	10%	90	3%	6
Hifab Group	32,744	2.44	54%	55%	80	3%	5
Nilörngruppen	2,700	56.10	24%	57%	151	5%	10
OEM International	886	213.00	4%	10%	189	7%	13
Softronic	11,589	16.16	22%	20%	187	7%	13
Total					954	34%	64
Unlisted active holdings
Unlisted holdings					58	2%	4
Due from active holdings					27	1%	1
Total					86	3%	5
Total active holdings					1,040	37%	70
Financial investments, cash and cash
equivalents
Other listed equities					520	18%	35
Interest-bearing investments¹					1,130	40%	77
Cash and cash equivalents					157	6%	11
Summa					1,807	63%	123
TOTAL					2,846	100%	192

The table below shows Traction's net asset value as of 30 September 2019.

¹Including interest-bearing investments with a maturity of less than one year in the amount of MSEK 500 and other net asset/liabilities in the amount of MSEK -3,2.

KEY FINANCIAL INDICATORS	2019 Jan-Sep	2018 Jan-Sep	2018 Full year
Change in value of net asset value per share, %	10	11	-3
Net asset value per share, SEK	192	203	178
Market price at end of period, SEK	195	178	165
Discount to net asset value, %	1	12	7

President's Statement

Following a strong first six months of the year, Traction shows a negative result in the amount of MSEK 80 for the third quarter. This means that the profit for 2019 so far adds up to MSK 261, equivalent to a return of 10 percent. The lower result is due to a weak trend in market prices for the active holdings amounting to MSEK −116 (−11%) after a return of +19 percent (MSEK 219) during the first six months of the year.

Traction's financial equity investments showed a positive development during the year, contributing MSEK 130, MSEK 36 of which during the third quarter.

PERIOD JULY - SEPTEMBER

Summary

The result after taxes amounted to MSEK −80 (141), which includes changes in value of MSEK −95 (130) and dividend income of MSEK 1 (3). Financial income amounted to MSEK 15 (10).

Active holdings - listed

Active listed holdings were a drag on profit in the amount of MSEK −116 (105), equivalent to a negative return 11 percent. The change in value amounted to MSEK −116 (105) and dividend income of MSEK 0 (0). Nilörngruppen burdened the result by MSEK −39 and OEM International by MSEK −32.

The holding in British technology consultancy WYG was sold in July as all prerequisites for TetraTech's bid were declared to be fulfilled. Proceeds amounted to MSEK 91.

Traction acquired 210,000 shares in Nilörngruppen for approximately MSEK 11.7 (SEK 55.7 each).

Changes in value1 (MSEK)	2019 KV 3
BE Group	-6
Drillcon	−11
Duroc	−15
Hifab Group	-9
Nilörngruppen	−39
OEM International	−32
Softronic	®5
WYG Plc	1
Result for listed active holdings	−116
1

1 Including dividend income.

Active holdings - unlisted

Active unlisted holdings had an effect on results of MSEK 0 (8).

Financial investments

Other listed holdings contributed MSEK 36 (28), with MSEK 32 (18) in shares and MSEK 4 (10) in interest-bearing investments.

The change in value of other listed shares amounted to MSEK 31 (16) and dividend income amounted to MSEK 1 (2).

Traction acquired just short of 2.3 million shares in staffing and recruitment company Poolia for approximately MSEK 12 (5.3 per share), which means that Traction is the company's second largest shareholder with 8 percent of the share capital and just over 4 percent of the votes.

Changes in value of interest-bearing investments amounted to MSEK −9 (0) and interest income was MSEK 13(10).

Financial equity investments exceeding MSEK 30 consist of Nordic Waterproofing (MSEK 44), Volkswagen (MSEK 42), DNB ASA (MSEK 42), Skanska (MSEK 40), Stora Enso (MSEK 36), Novo Nordisk (MSEK 34) and BW Offshore (MSEK 31). Together, these holdings account for a MSEK 268 of a total of MSEK 520. Interest-bearing investments amounted to MSEK 1,138 as of 30 September (1,028), of which MSEK 500 (395) are investments in commercial paper and similar instruments

with a maturity of less than one year and MSEK 638 (633) in corporate bonds and similar instruments.

PERIOD JANUARY - SEPTEMBER

Summary

Profit after taxes amounted to MSEK 261 (286), which includes changes in value of MSEK 164 (209) and dividend income of MSEK 64 (53). Financial income amounted to MSEK 38 (30). The net asset value increased during the period by 10.1 (11.1) percent, adjusted for dividend paid in the amount of MSEK 53.

Active holdings - listed

Active listed holdings contributed MSEK 103 (198), equivalent to a return of approximately 9 percent. The change in value amounted to MSEK 58 (161) and dividend income was MSEK 45 (37). Softronic contributed MSEK 32 and WYG MSEK 32.

Changes in value1 (MSEK)	2019 9 months
BE Group	23
Drillcon	-1
Duroc	5
Hifab Group	6
Nilörngruppen	-20
OEM International	26
Softronic	32
WYG Plc	32
Listed active holdings	103
1 Including dividend income.

Active holdings - unlisted

Active unlisted holdings affected the result by MSEK 1 (−8), which includes dividend income of MSEK 3 and revaluation of shares in the amount of MSEK −12 and loan receivables MSEK +9.

Financial investments

Other listed holdings contributed MSEK 162 (102), divided on shares MSEK 130 (72) and interest-bearing investments MSEK 32 (30).

The change in value of other listed shares amounted to MSEK 114 (57) and dividend income amounted to MSEK 16 (15). The change in value of interest-bearing investments amounted to MSEK −4 (1) and interest income was MSEK 36 (29).

Liquidity

The change in value of other listed shares amounted to MSEK 157 (128). Other interestbearing investments amounted to MSEK 1,130 (1,029), of which in investments in short-term interest-bearing investments¹ amounted to MSEK 500 (385). Holdings of other listed shares amounted to MSEK 520 (419).

A short-term loan granted during the second quarter was repaid during the third quarter.

¹ Short-term interest-bearing investments are defined as investments in commercial paper and similar instruments with a maturity of less than one year, and investments that fall due for payment within 12 months.

Equity/Net asset value

Equity amounted to MSEK 2,846 as of 30 September (2,638) equivalent to SEK 192 (178) per share. The number of shares outstanding as of 30 September was 16,000,000, of which 1,800,000 of Class A. Not including repurchased shares (1,210,153 equivalent to 8 percent), the number of shares outstanding was 14,789,847, of which 1,800,000 were Class A shares.

Parent Company

AB Traction's result for the period amounted to MSEK 214 (140). Cash and cash equivalents amounted to MSEK 59 (99), not including investments in short-term interest-bearing investments¹ of MSEK 435 (290). The Parent Company has no external loans.

¹ Short-term interest-bearing investments are defined as investments in commercial paper and similar instruments with a maturity of less than one year, and investments that fall due for payment within 12 months.

Transactions with closely related parties

There have been no transactions between Traction and closely related parties that have significantly affected the Group's and the Parent Company's financial position during the period. There were the usual transactions between wholly and majority owned companies in the Traction Group, including loans, interest charges, repayments and some charges for services provided.

Risks and uncertainty factors

Traction's significant risk and uncertainty factors include business risks in the form of exposure to certain industries, or an individual holding, as well as dependency on individual key persons in the Companies in which Traction is involved or has an ownership interest.

In addition, there are financial risks, which primarily consist of price risks, i.e. the risk of a change in value of a financial instrument due to changes in share prices, foreign exchange rates or interest rates. In addition to the risks described in Traction's Annual Report in general by reason of the Company's business orientation, specific reference can be made to the Report of the Board of Directors and accompanying notes for a more detailed discussion of the Group's and the Parent Company's risk exposure and risk management procedures. Beyond that, no additional significant risks are deemed to have been added.

Accounting policies

This interim report has been prepared for the Group in accordance with IAS 34 Interim Financial Reporting and applicable rules in the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance the Swedish Annual Accounts Act. Traction is an investment company in accordance with IFRS 10, which means that Traction applies the statutory exceptions to consolidation of subsidiaries.

IFRS 16 which deals with the accounting treatment of rental and leasing contracts for lessors as well as lessees, has not given rise to monetary changes in the Group's accounting since these amounts are insignificant.

In all other respects the same accounting policies and calculation methods have been applied as in the most recent annual report. Comparative data refer to the corresponding year-ago period, except in the case of balance sheet items and liquidity metrics which refer to the prior year-end.

Schedule of future information

Publication dates for future financial information:

14 Feb 2020	Year-end Report 2019
6 May 2020	Interim Report January-March 2020
6 May 2020	Annual General Meeting 2019, 5:00 p.m. in Stockholm
17 July 2019	Interim Report January-June 2020
23 Oct 2019	Interim Report January-September 2020
16 Feb 2021	Year-end Report 2020

.

The information was submitted for publication at 1:00 p.m., 16 October 2019.

Stockholm, 16 October 2019

Petter Stillström President & CEO

AB Traction Box 3314 SE-103 66 Stockholm SWEDEN Corporate ID number: 556029-8654 Telephone: +46-8-506 289 00 E-mail: post@traction.se traction.se

	2019	2018	2019	2018	2018
MSEK	Q 3	Q 3	9 months	9 months	Full year
Dividend income	1.4	2.5	64.4	53.1	54.8
Changes in value	−94.7	130.0	164.3	208.8	−160.3
Financial income/expense	14.5	9.7	37.8	29.5	41.2
Other income	1.6	0.4	2.8	1.2	1.6
Operating expenses	−2.7	−1.9	−8.1	−6.9	−8.8
Result before taxes1	−79.9	140.8	261.2	285.8	−71.4
Taxes	-	-	-	-	-
Result for the period¹	−79.9	140.8	261.2	285.8	−71.4
Earnings per share before and after dilution2 (SEK)	−5.40	9.52	17.66	19.32	−4.83
Number of shares outstanding (thousands)	14,790	14,790	14,790	14,790	14,790
Average number of shares outstanding (thousands)	14,790	14,790	14,790	14,790	14,790

Summary Consolidated Income Statement

¹ The information on the period's profit is in the case of Traction consistent with the comprehensive result. No separate report on comprehensive result is therefore presented.

² There are no instruments outstanding that may lead to dilutive effects.

Summary Consolidated Balance Sheet

	2019	2018	2018
MSEK	30 Sep	30 Sep	31 Dec
ASSETS
Tangible non-current assets	-	0.0	0.0
Loan receivables	19.9	28.6	21.1
Equities	1,012.0	1,313.4	1,042.8
Total non-current assets	1,031.9	1,342.0	1,063.9
Other current assets	0,8	3.0	3.1
Financial investments	1,653.3	1,466.7	1,447.0
Loan receivables	7,5	-	-
Cash and cash equivalents	156.8	187.7	128.0
Total current assets	1,818.4	1,657.4	1,578.1
TOTAL ASSETS	2,850.4	2,999.3	2,642.0
EQUITY AND LIABILITIES
Equity
Attributable to the Parent Company's equity holders	2,846.3	2,995.5	2,638.4
Total equity	2,846.3	2,995.5	2,638.4
Current liabilities	4.0	3.9	3.6
Total liabilities	4.0	3.9	3.6
TOTAL LIABILITIES AND EQUITY	2,850.4	2,999.3	2,642.0

	2019	2018	2018
MSEK	30 Sep	30 Jun	31 Dec
Amount attributable to the Parent Company's shareholders
at the beginning of the year	2,638.4	2,750.5	2,750.5
Dividend to shareholders	−53.2	−40.7	−40.7
Repurchase of own shares	-	-	-
Profit for the period	261.2	285.8	−71.4
Closing balance	2,846.3	2,995.5	2,638.4

Summary Report of Changes in Consolidated Equity

Summary Consolidated Cash Flow Statement

	2019	2018	2019	2018	2018
MSEK	Q 3	Q 3	9 months	9 months	Full year
Operating activities
Consolidated profit before taxes	−79.9	140.8	261.2	285.8	−71.4
Adjustment for items not included in cash flow	94.7	−126.3	−164.3	−205.2	163.9
Paid taxes	-	-	-	-	-
Cash flow from operating activities	14.8	14.4	96.9	80.6	92.4
Change in working capital	1.5	−0.1	2.7	3.0	2.8
Cash flow from operating activities	16.3	14.4	99.5	83.6	95.2
Cash flow from investment activities
Purchase of shares in unlisted companies	-	-	-	−6.0	−6.0
Sale of shares in unlisted companies	-	2.8	-	31.4	31.4
Purchase of shares in listed companies	−97.1	−90.1	−184.7	−256.5	−386.0
Sale of shares in listed companies	198.0	67.5	273.7	203.0	264.8
Purchase/sale of tangible non-current assets	-	-	-	-	-
Change in other financial assets	−140.6	−53.2	−106.6	−38.8	−42.4
Cash flow from investment activities	−39.7	−73.0	−17.6	−66.9	−138.2
Financing activities
Dividend paid	-	-	−53.2	−40.7	−40.7
Repurchase of own shares	-	-	-	-	-
Cash flow from financing activities	-	-	−53.2	−40.7	−40.7
Cash flow for the period	−23.4	−58.7	28.7	−24.0	−83.7
Cash and cash equivalents at beginning of period	180.1	246.3	128.0	211.7	211.7
Cash and cash equivalents at end of period	156.8	187.7	156.8	187.7	128.0

Performance Specification

Group 2019 Q 3	Active holdings, listed	Active holdings, unlisted	Financial investments /other	Total
Dividend income	-	-	1.4	1.4
Changes in value	−115.9	-	21.2	−94.7
Financial income/expense	-	0.1	14.4	14.4
Other revenue	-	-	1.6	1.6
Operating expenses	-	-	−2.7	−2.7
Result before taxes	−115.9	0.1	35.9	−79.9

Group 2018 Q 3	Active holdings, listed	Active holdings, unlisted	Financial investments /other	Total
Dividend income	-	-	2.5	2.5
Changes in value	105.4	8.1	16.5	130.0
Financial income/expense	-	0.3	9.4	9.7
Other revenue	-	-	0.4	0.4
Operating expenses	-	-	−1.9	−1.9
Profit before taxes	105.4	8.4	27.0	140.8

Group 2019 9 months	Active holdings, listed	Active holdings, unlisted	Financial investments /other	Total
Dividend income	45,3	2.7	16.4	64.4
Changes in value	57.7	−2.7	109.3	164.3
Financial income/expense	-	0.5	37.3	37.8
Other revenue	-	-	2.8	2.8
Operating expenses	-	-	−8.1	−8.1
Profit before taxes	103,0	0.5	157.9	261.2

Group 2018 9 months	Active holdings, listed	Active holdings, unlisted	Financial investments /other	Total
Dividend income	37.0	1.0	15.1	53.1
Changes in value	160.6	−9.5	57.5	208.8
Financial income/expense	-	0.8	28.9	29.5
Other revenue	-	-	1.2	1.2
Operating expenses	-	-	−6.9	−6.9
Profit before taxes	197.6	-7.7	95.9	285.8

Financial Assets

Group 30 September 2019 MSEK	Level 1	Level 2	Level 3	Total
Financial assets
Shares in unlisted holdings	-	-	58,4	58,4
Shares in listed active holdings	953.6	-	-	953.6
Financial investments	1,653.3	-	-	1,653.3
Total	2,606.9	-	58.4	2,665.3

Group 30 December 2019 MSEK	Level 1	Level 2	Level 3	Total
Financial assets
Shares in unlisted holdings	-	-	70.0	70.0
Shares in listed active holdings	972.8	-	-	972.8
Financial investments	1,447.1	-	-	1,447.1
Total	2,419.9	0.0	70.0	2,489.9

Fair value valuation of financial instruments

Level 1: According to prices quoted in active markets for the same instrument

Level 2: Based on directly or indirectly observable market data not included in level 1

Level 3: Based on input data not observable in the market.

Changes in Level 3 Financial Assets

Group 2019-Q3 MSEK
Opening carrying value	69.0
Purchases/shareholder contributions	0.0
Sales	0.0
Change in value¹	−10.6
Total	58.4

¹ MSEK 1.7 of which constitutes dividend income.

Valuation of Level 3 Financial Instruments

Valuation of unlisted holdings is made based on International Private Equity and Venture Capital Valuation Guidelines as developed and published jointly by risk capital organisations EVCA, BVCA and AFIC. For directly owned investments, an overall assessment is made to determine which valuation method is appropriate for each individual holding. Taken into account will be whether any financing or transaction "at armslength distance" has been made and an evaluation is also made by applying relevant multiples to the company's key financial indicators from a selected group of similar companies, less an adjustment for, for instance, difference in size between the company in question and the group of comparable companies. In cases where there are other methods that better reflect the fair value of an individual holding, such methods are used which means that

individual holdings may be value by other than the methods described above. All level 3 assets consist of shares in unlisted companies and are valued in accordance with the following valuation methods and non-observable data used for determining the carrying value. The data in the table below represent a selection and is therefore not all input data used in the valuation.

EBIT multiples: 5 - 9

Revenue multiples: 0.5 - 3.0

Net asset valuation: Established net asset value

Most recent transaction: In the case of recently floated new issue/share offering, the price thereon is taken into account. Higher multiples may also be applied in cases of expected rapid growth.

	2019	2018	2019	2018	2018
MSEK	Q 3	Q 3	9 months	9 months	Full year
Dividend income	1.4	2.4	40.2	31.0	32.8
Changes in value	−39.4	95.2	163.1	97.9	−129.4
Financial income/expense	0.0	0.0	0.5	0.0	-
Other external costs	−0.1	−0.2	−0.9	−0.8	−1.1
Operating result	−38.0	97.4	202.8	128.1	−97.7
Other interest income/expense and similar items	4.3	3.1	11.2	11.8	15.7
Result after financial items	−33.8	100.5	214.0	139.9	−82.0
Taxes	-	-	-	-	-
Result for the period¹	−33.8	100.5	214.0	139.9	−82.0

Summary Parent Company Income Statement

¹ The information on the period's result is in the case of Traction consistent with the comprehensive result. No separate report on comprehensive result is therefore presented.

Summary Parent Company Balance Sheet

	2019	2018	2018
MSEK	30 Sep	30 Sep	31 Dec
ASSETS
Equities	719.9	880.3	757.8
Total non-current assets	719.9	880.3	757.8
Due from Group companies	426.1	417.5	409.5
Other receivables	0.0	0.1	0.0
Financial investments	1,111.4	920.7	888.5
Cash and cash equivalents	58.7	158.5	99.2
Total current assets	1,596.1	1,496.8	1,397.2
TOTAL ASSETS	2,316.0	2,377.1	2,155.0
EQUITY AND LIABILITIES
Equity	2,315.7	2,376.8	2,155.0
Current liabilities	0.3	0.3	0.0
Total current liabilities	0.3	0.3	0.0
TOTAL LIABILITIES AND EQUITY	2,316.0	2,377.1	2,155.0

Definitions and Alternative Key Financial Indicators

The definitions and alternative key financial indicators below are significant for the understanding of Traction's operations. Only earnings per share below is defined in accordance with IFRS. All alternative key financial indicators refer to the Group. Calculations are based on exact figures, which means that differences may occur due to rounding.

The Traction Group

Aside from the AB Traction parent company, the Traction Group includes wholly owned subsidiaries managing securities, providing lending, underwriting and consultancy services, mainly to Traction's project companies.

Financial investments

Refers to investments in shares and interest-bearing financial instruments where Traction's ownership is less than 10 percent of the votes, or where Traction does not have an active role by being represented on the Board of Directors. Financial investments are shown in the listing of Traction's net asset value, and in the consolidated and Parent Company balance sheets in this report. A previously active listed holding is recognized as a financial investment on the day when ownership falls below 10 percent of the votes, or from the day when Traction's representative leaves the Board of Directors.

Listed active holdings

Holdings in listed companies where Traction's ownership exceeds 10 percent of the votes, or where Traction has an active role by being represented on the Board of Directors. Active holdings are shown in the listing of Traction's net asset value in this report. A holding is recognized as from the day when Traction's ownership exceeds 10 percent of the votes, or from the day when Traction is represented on the Board of Directors.

Onoterade aktiva innehav

Unlisted active holdings

Wholly and partially owned unlisted companies where any remaining shares typically are held by one or more entrepreneurs or other active

owners. Unlisted holdings are companies whose shares typically are owned by one or more entrepreneurs or other active part owners. Unlisted holdings are companies whose shares are not subject to organized daily trading, but not necessarily on a regulated market. Upon listing of an unlisted holding, or upon delisting of a listed company, the holding switches category on the day when the change occurs.

Equity per share/net asset value per share

Equity at the end of the period, divided by the number of shares outstanding on the same day, i.e. 2,846 x 1,000,000 / 14,789,847 = SEK 192.

Net asset value discount

Traction's market value, where unlisted class A shares are given the same value as the listed class B shares at the end of the period, less the net asset value divided by the net asset value at the end of the period in percent multiplied by −1, i.e. ((194.5 − 192) / 192) x 100) x −1 = 1.3%

Net asset value/equity

The net of assets and liabilities at market value, which in Traction's case is equivalent to the Traction Group's equity, i.e. MSEK 2,846 as of 30 September 2019.

Change of net asset value per share, adjusted for dividend paid in percent / Return on equity on net asset value per share

Earnings per share, divided by opening equity per share after deduction of dividend paid per share during the period in percent, i.e. for the period: 17.66 / (178.4 −3.60) x 100 = 10.1%.

Earnings per share before and after dilution

Result for the period after dilution, divided by the average number of shares outstanding during the period, i.e. 261.2 x 1,000,000 / 14,789,847 = SEK 17.66. The number of shares outstanding during the period was unchanged.

Review Report

To the Board of Directors of AB Traction (publ), corporate ID number 556029-8654

Introduction

We have reviewed the summary financial interim information (Interim Report) of AB Traction (publ) as of 30 September 2019 and the nine-month period ending on that date. The Board of Directors and the President is responsible for the preparation and fair presentation of this Interim Report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this Interim Report based on our review.

The focus and scope of the review

We have conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information 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 consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. The conclusion expressed based on our review does therefore not have the certainty that a conclusion expressed based on an audit has.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the Interim Report in all material respects is not prepared for the group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Swedish Annual Accounts Act.

Stockholm, 16 October 2019

Mazars SET Revisionsbyrå AB

Anders Bergman

Authorised Public Accountant