Volati — Interim / Quarterly Report 2020

Jul 17, 2020

Interim Report January-June 2020

"Another quarter of strong earnings growth, with EBITA increasing by over 40 percent to SEK 181 million"

Mårten Andersson, CEO

This interim report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish original and the translation, the Swedish shall have precedence.

Interim Report January–June 2020

Quarter April-June 2020

• Net sales increased by 6 percent to SEK 1,889 (1,776) million
• EBITA* increased by 41 percent to SEK 181 (129) million
• Profit after tax increased by 86 percent to SEK 112 (60) million
• Earnings per ordinary share increased by 129 percent to SEK 1.19 (0.52)

Period January-June 2020

• Net sales increased by 7 percent to SEK 3,547 (3,321) million
• EBITA* increased by 46 percent to SEK 243 (166) million
• Profit after tax increased by 113 percent to SEK 126 (59) million
• Earnings per ordinary share increased by 279 percent to SEK 1.17 (0.31)

Summary of results and key figures

SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales	1,889	1,776	3,547	3,321	7,059	6,833
EBITA*	181	129	243	166	589	513
EBIT	168	115	216	140	206	130
Profit after tax	112	60	126	59	64	-2
Operating cash flow, SEK million*	212	36	149	-130	802	523
Net debt/adjusted EBITDA, x*	1.3	2.4	1.3	2.4	1.3	1.5
Earnings per ordinary share, SEK	1.19	0.52	1.17	0.31	0.99	0.13
Return on adjusted equity, %*	0	11	0	11	0	-4

* See note 6 for definitions of alternative performance measures

Another quarter of strong earnings growth, with EBITA increasing by over 40 percent to SEK 181 million

Volati continued to grow during the second quarter and delivered a significantly improved EBITA, which amounted to SEK 181 million, an increase of 41 percent compared with the same quarter the previous year. Since the IPO in 2016, our average annual EBITA growth has been 19 percent, which is in line with our overall goal of generating long-term value growth.

Our earnings growth during the quarter has been driven by good development in most of our business areas. This is the result of long-term, consistent work to develop well-managed business units with strong positions in their markets and a clear focus on, and ability to generate, earnings growth. The strong earnings growth combined with streamlined working capital has meant that operating cash flow during the quarter improved to SEK 212 (36) million.

The quarter ended with the acquisition of label producer Beneli AB – our sixth add-on acquisition since 2019. Add-on acquisitions are a natural, and important, part of our growth journey. We utilise the platform we have in the existing business units and strengthen it by building integrated groups of companies that together have a stronger offering and market position in their sector and are able to drive synergies. We have already done this successfully, particularly in the Trading business area, and we see many opportunities in our other business units.

Continuing growth in the Trading business area

The Trading business area reported another good quarter, with growth in both sales and earnings. The business area has been able to benefit from good market conditions during the quarter, for example within the more consumer-driven area of building materials and hardware retail and garden centres. The business area has strong brands and market positions, and an organisation that allows synergies, particularly through its efficient logistics platform. However, some business units are still experiencing minor supply chain disruptions.

Stronger earnings for the Consumer business area

The Consumer business area was the highlight of the quarter, with very strong earnings growth. The growth was driven by our inspection operations which continue their incredibly good development. I am proud of how over the last few years we have built a company that currently has one of the strongest brands in the vehicle inspection sector and a market share of about 25 percent – a company that meets the high expectations of all stakeholders in the inspection business, such as the state, customers and employees.

Akademibokhandeln's digital channels growing

The Akademibokhandeln business area has managed the challenges in the wake of the Covid-19 pandemic very well. We continue to see high growth in the digital channels AKB.se, Bokus.com and Bokus Play. This partly compensates for the decline of 27 percent in store sales. Thanks to lower costs, earnings were in line with the previous year.

The events of recent months have accelerated our journey towards an even more developed omni-channel offering – the

combination of stores and AKB.se – and we see good results with growth of 130 percent in the AKB.se digital channel during the quarter. We are strengthened by people's keen interest in reading – both physical books and digital versions. We also see the importance of strong customer relationships and this is where Akademibokhandelns Vänner loyalty club comes into its own, with over 2 million members.

Another good quarter for Industry

The Industry business area had another good quarter with stable EBITA growth. The business area is characterised by clear strategies for the operations, good management and a focus on earnings growth. The business units are in many cases product leaders in their areas. The business area's work on identifying and evaluating acquisition opportunities culminated in the acquisition of Beneli at the end of the quarter.

Covid-19

Q2 was marked by the Covid-19 pandemic and all business areas were, in various ways, affected by its consequences during the quarter. Our business units have taken part in the various support measures that have been available. The overall impact on Volati has been limited.

Focus on growth and long-term value creation

We are now focusing fully on the continuing growth journey and long-term value creation for Volati, with acquisitions representing an important part of the strategy. Earnings per ordinary share have increased by 279 percent for the year to date. The earnings growth illustrates the leverage our capital structure provides for our ordinary shareholders. We continue to have a strong financial position, and the net debt to adjusted EBITDA ratio ended the quarter at 1.3x due to strong cash flows, which provides a large space for acquisitions. We also see a good inflow of potential acquisition candidates – in particular, value-creating add-on acquisitions for our business areas. All in all, this gives us good conditions for building Volati further, both through acquisitions and continuing long-term earnings improvements in our existing operations.

Mårten Andersson, President and CEO

This is Volati

Volati acquires well-managed companies with strong cash flows at reasonable valuations, and develops them with a focus on long-term value creation. Acquiring companies that have stable and sustainable cash flows from the outset creates a stable base for operations. These cash flows are then used for further acquisitions. Through active long-term corporate development efforts, Volati creates favourable conditions for organic growth.

Net sales and EBITA trends

Financial targets

Volati's overall objective is to generate long-term value growth by building an industrial group of profitable companies with solid cash flows and capacity for continuous development. The Board has established the following long-term financial targets, which should be evaluated as a whole:

Return on adjusted equity: The long-term target is a return on adjusted equity* of 20 percent.

Capital structure: The target is a net debt/adjusted EBITDA ratio* of 2 to 3 times as an average over the last four quarters, and not exceeding 3.5 times.

* See note 6 for definitions of alternative performance measures

2016 2017 2018 2019 Q2

Average adjusted equity, SEK million Return on adjusted equity, %

-10% 0% 10% 20% 30% 40%

2020

Consolidated financial trend

Net sales

The Group's net sales for Q2 2020 amounted to SEK 1,889 (1,776) million, an increase of 6 percent compared with the same period the previous year. The increase is mainly attributable to good demand in the Trading and Industry business areas, and add-on acquisitions in the Trading business area. The Consumer business area has seen a decline in sales as a result of having one business unit less compared with the previous year and the Akademibokhandeln business area has reported lower sales than in the previous year.

Net sales for the first six months of 2020 amounted to SEK 3,547 (3,321) million, an increase of 7 percent compared with the same period the previous year.

	Apr-Jun 2020	Apr-Jun 2019	Δ %	Jan-Jun 2020	Jan-Jun 2019	Δ %
Net sales	1,889	1,776	6	3,547	3,321	7
EBITA*	181	129	41	243	166	46
EBIT	168	115	45	216	140	54
Profit after tax	112	60	86	126	59	113

* See note 6 for definitions of alternative performance measures

Earnings

EBITA per ordinary share LTM, Q2 2020

EBITA for Q2 increased by 41 percent to SEK 181 (129) million. The strongest contributor to the increase was the Trading business area, which reported significantly better earnings than in the previous year, driven by increased sales, improved margins and add-on acquisitions. The Industry business area also reported much better earnings than in the previous year, driven by both increased demand and improved margins. The Consumer business area has shown significantly improved profitability, with earnings growth in the vehicle inspection operations being the strongest contributory factor. Despite the effects of the Coronavirus, the Akademibokhandeln business area reported only slightly lower earnings than in the previous year thanks to good demand in the digital channels and effective cost control. All business areas obtained government support, with the store operations in the Akademibokhandeln business area having obtained the most.

EBITA for the first six months increased by 46 percent to SEK 243 (166) million. EBITA for the last twelve months increased by 27 percent to 589 (463) million and EBITA per ordinary share increased by 27 percent in Q2.

Profit after tax for Q2 increased by 86 percent to 112 (60) million during Q2. The increase for the first six months was 113 percent, from SEK 59 million to SEK 126 million.

Net sales, SEK million EBITA, SEK million

+27%

Seasonal variations

Volati's sales, earnings and cash flow are affected by seasonal variations. The fourth quarter generally has the strongest cash flow and earnings, and the first quarter the weakest. This means that Volati's operations, sales and earnings development is best monitored on an LTM basis.

Cash flow

LTM Q2 2020

Operating cash flow for Q2 2020 amounted to SEK 212 (36) million. The strong improvement from the previous year is mainly related to the Group´s improvement in earnings and increased focus on working capital efficiency. Operating cash flow for the last twelve months amounted to SEK 802 million, compared with SEK 523 million for the full year 2019.

Cash flow from operating activities for Q2 2020 amounted to SEK 422 (96) million. The strong improvement from the previous year is mainly related to the improved operating cash flow. Cash flow from operating activities for the last twelve months amounted to SEK 1,172 (759) million. Investments in non-current assets for Q2 2020 amounted to SEK 16 (20) million and were primarily related to business investments in the form of new establishments, IT systems and ongoing investments in machinery and equipment. In addition, the acquisition of Beneli AB was completed.

Equity

The Group's equity amounted to SEK 2,426 (2,360) million at the end of the period. The increase is mainly attributable to profit for the period. The equity ratio on 30 June 2020 was 35 percent, compared with 38 percent at the end of 2019, and was mainly due to increased debt as a result of new borrowings. The return on adjusted equity was 0 (-4) percent and was adversely affected by the impairment of intangible assets of SEK 239 million in Q3 2019. Without the impairment of intangible assets, the return on adjusted equity would have been 18 (15) percent.

Net debt

Net debt/ adjusted EBITDA average 4 quarters The Group had net debt of SEK 893 million at the end of the period, compared with SEK 907 million on 31 December 2019. Net debt/adjusted EBITDA at the end of the quarter was 1.3x, compared with 1.9x in the previous quarter and 2.4x in Q2 2019. The largest impact came from improved earnings and completed acquisitions. Net debt/adjusted EBITDA as an average over the last four quarters is 1.7x. Total liabilities on 30 June 2020 amounted to SEK 4,523 million, compared with SEK 3,796 million on 31 December 2019. Interest-bearing liabilities, including pension obligations and lease liabilities, were SEK 2,420 million at the end of the period, compared with SEK 2,094 million on 31 December 2019. During the first half of the year, Volati increased its interest-bearing liabilities in order to have higher liquidity preparedness in view of the current market uncertainty. This is the main reason for higher portion of interest-bearing liabilities in relation to net indebtness from a historical perspective and the relationship is evaluated continuously.

Acquisitions and disposals during and after the period

Acquisitions are a core element of Volati's strategy for creating long-term value growth, and the Company continuously evaluates both complementary acquisitions and acquisitions in new business areas. It is Volati's assessment that there is a lower risk level for add-on acquisitions and acquisitions of business units than for acquisitions in new business areas, as in-depth industrial know-how and a recipient organisation are already in place in the acquiring company.

As announced in the press release dated 25 June, Volati has acquired all of the shares in Beneli AB. The acquisition is an add-on acquisition for the Industry business area and the Ettiketto business unit. Beneli reported sales of SEK 156 million in 2019. The company develops, manufactures and sells selfadhesive labels for both consumer goods and industrial products. The company also has a unique position in the area of medical labels applied to the skin for monitoring and diagnostics in health care. The acquisition was financed through Volati's existing credit facilities and the company was consolidated at the end of June 2020

Volati's business areas

Volati's net sales and earnings by business area

The diagrams relate to the 12-month period 1 July 2019 to 30 June 2020. Acquired operations are included in the relevant business area from the acquisition closing date and their proportion is calculated net of central costs and items affecting comparability. Divested operations are included in the relevant business area up to the divestment date.

Trading

	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales, SEK million	712	589	1,303	1,085	2,356	2,138
EBITA, SEK million	86	59	125	88	214	178
EBITA margin, %	12	10	10	8	9	8
EBIT, SEK million	83	57	119	83	203	167
ROCE excl. goodwill, %	32	32	32	32	32	28
ROCE incl. goodwill, %	14	12	14	12	14	12

The Trading business area offers products for building and industry, primarily hardware, consumables, material and packaging. Within the business area, there is also a strong offering of products for home and garden, and agriculture and forestry. The products consists of both own brands and distributed brands.

The business area had very good demand during the quarter and increased its sales compared with the previous year. One of the demand drivers is the strong do-it-yourself market, which has benefited the business area's consumer-driven operations in building materials and hardware retail and garden centres. Operations targeting the building and wood industry, and small-scale agriculture also experienced good demand during the quarter.

The business area showed a significant earnings improvement in the quarter. In addition to regular improvement work, the margin has been strengthened as a result of cost savings and restraint, given the uncertainty at the beginning of the quarter. The business area continues to see some disruptions in the supply chain, but these have been managed well.

Consumer

	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales, SEK million	225	248	411	470	836	895
EBITA, SEK million	64	47	70	52	130	112
EBITA margin, %	28	19	17	11	16	13
EBIT, SEK million	61	44	64	46	1191)	1011)
ROCE excl. goodwill, %	87	101	87	101	87	76
ROCE incl. goodwill, %	20	11	20	11	20	14

1) Excluding impairment of intangible assets in Q3 2019.

The Consumer business area comprises the business units that offer products and services directly to end consumers. Despite the business units operating in two different market niches – vehicle inspection and nutritional supplements – the business area affiliation creates the conditions for clear and strong follow-up and guidance of the operations towards the goal of long-term value creation.

The business area has delivered a very solid quarter, with the vehicle inspection operations performing particularly well, due to, among other things, the right availability, efficient pricing, new establishments and cost control. The decline in sales is attributable to the business area having one business unit less now that me&i is no longer consolidated. The business area has shown a marked improvement in earnings compared with the previous year, despite having fewer business units.

Consumer business area manager Johan Ekström has chosen to leave his position at Volati and CFO Andreas Stenbäck has been appointed acting business area manager.

Akademibokhandeln

	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales, SEK million	298	328	743	781	1,754	1,793
EBITA, SEK million	-26	-24	-29	-27	74	76
EBITA margin, %	-9	-7	-4	-3	4	4
EBIT, SEK million	-32	-30	-41	-39	51	53
ROCE excl. goodwill, %	28	44	28	44	28	26
ROCE incl. goodwill, %	8	10	8	10	8	8

The Akademibokhandeln business area is the leading bookstore chain in Sweden. Under the Akademibokhandeln (nationwide store network and e-commerce), Bokus (e-commerce) and Bokus Play (audio book streaming) brands, the business area operates modern and profitable sales channels for consumers, companies and the public sector.

Within the Akademibokhandeln business area, the digital channels AKB.se, Bokus.com and Bokus Play have developed very well during the quarter, with an increase of just over 20 percent. It is particularly heartening to see loyal store customers moving to the business area's digital channels. Revenue from the digital channels accounted for almost 50 percent of the business area's total sales for the quarter. The increase in the digital channels partly compensates for the decline of 27 percent in store sales as a result of the Covid-19 pandemic.

The business area has delivered earnings that are only slightly lower than the previous year. This is due to good results and growth for the digital channels, effective cost control throughout the business area and government support for the store operations.

Industry

	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales, SEK million	654	612	1,092	985	2,115	2,008
EBITA, SEK million	77	64	108	79	208	179
EBITA margin, %	12	10	10	8	10	9
EBIT, SEK million	75	61	104	75	200	171
ROCE excl. goodwill, %	25	22	25	22	25	21
ROCE incl. goodwill, %	16	14	16	14	16	14

The Industry business area offers products and solutions for companies within four different market niches – grain handling, moisture and water damage restoration, labels for brand manufacturers, and stone and cement products for infrastructure, paving and roofing.

Operations within the business area continued to show a good level of activity and order intake. Sales increased, driven by continuing good demand for the companies' products. Earnings for the business area increased as a result of leverage from defined strategies, good cost control and a focus on earnings growth.

The business area sees good opportunities for add-on acquisitions in several of its operations. Beneli AB, an add-on acquisition for the Ettiketto business unit, was acquired at the end of the quarter. Beneli fits well into the business unit's strategy of continued growth and will contribute to an even stronger platform as a comprehensive supplier of label solutions.

Head Office

Head Office comprises the central costs in the Parent Company Volati AB and associated operations including the acquisition costs arising in the Group. EBITA for Q2 was SEK -12 (-15) million.

Other information

Share capital

Volati has two classes of shares, ordinary shares and preference shares, which are listed on Nasdaq Stockholm under the tickers VOLO and VOLO PREF. The number of shareholders at the end of Q2 was 7,226.

The number of ordinary shares was 79,406,571 and the number of preference shares was 1,603,774 at the end of June 2020. Share capital amounted to SEK 10 million at 30 June 2020.

Related-party transactions

No significant related-party transactions of any other nature have occurred in addition to what is stated in the annual report for 2019. All related-party transactions have been conducted at market conditions.

Events after the end of the reporting period

No significant events have taken place after the end of the reporting period.

Financial calendar

To create increased transparency in the current market situation, Volati has brought forward the publication date for the interim report for Q3 2020.

Interim Report January–September 2020:	22 October 2020
Year-end Report 2020:	19 February 2021

Declaration by the Board

The Board of Directors and the CEO hereby certify that this interim report provides a fair overview of the Parent Company's and the Group's operations, financial position and performance and describes material risks and uncertainties faced by the Parent Company and Group companies.

Volati AB (publ)

The Board of Directors and CEO Stockholm, 17 July 2020

Patrik Wahlén		Karl Perlhagen
Chairman of the Board		Board Member
Björn Garat		Christina Tillman
Board Member		Board Member
	Louise Nicolin
	Board Member
Anna-Karin Celsing		Magnus Sundström
Board Member		Board Member
	Mårten Andersson
	CEO

This interim report has not been reviewed by the Company's auditors.

This information is information that Volati AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out below, at 07.45 CEST on 17 July 2020.

Conference call

CEO Mårten Andersson and CFO Andreas Stenbäck will present the interim report in a conference call at 15.00 on 17 July. The presentation will be conducted in Swedish. Phone number to access the conference call: +46 8 566 427 04 For a webcast of the conference call, go to www.volati.se.

For more information, please contact:

Mårten Andersson, CEO Volati AB, +46 72 735 42 84, marten.andersson@volati.se Andreas Stenbäck, CFO Volati AB, +46 70 889 09 60, andreas.stenback@volati.se

Volati AB (publ)

Corporate reg. no. 556555-4317 Engelbrektsplan 1, SE-114 34 Stockholm Tel: +46 8 21 68 40 www.volati.se

Financial Statements

Condensed consolidated income statement

SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Operating income
Net sales	1,889	1,776	3,547	3,321	7,059	6,833
Operating expenses
Raw materials and supplies	-1,082	-981	-2,009	-1,836	-3,928	-3,756
Other external costs	-141	-164	-318	-349	-641	-672
Personnel expenses	-386	-406	-780	-781	-1,532	-1,533
Other operating income and expenses	1	3	-1	11	25	38
EBITDA	281	229	439	365	984	909
Depreciation	-99	-100	-196	-199	-394	-397
EBITA	181	129	243	166	589	513
Acquisition-related amortisation	-14	-14	-28	-27	-383	-382
EBIT	168	115	216	140	206	130
Finance income and costs
Finance income and costs	-23	-25	-53	-49	-101	-96
Profit before tax	144	91	162	91	106	34
Tax	-32	-30	-36	-32	-41	-37
Net profit	112	60	126	59	64	-2
Attributable to:
Owners of the Parent	111	58	125	57	143	74
Non-controlling interests	2	3	1	3	-78	-77
Earnings per ordinary share, SEK	1.19	0.52	1.17	0.31	0.99	0.13
Diluted earnings per ordinary share, SEK	1.19	0.52	1.17	0.31	0.99	0.13
No. of ordinary shares	79,406,571	79,406,571	79,406,571	79,406,571	79,406,571	79,406,571
Average no. of ordinary shares	79,406,571	79,681,296	79,406,571	80,041,930	79,406,571	79,721,639
Average no. of ordinary shares after dilution	79,406,571	79,945,888	79,406,571	80,306,522	79,406,571	79,721,639
No. of preference shares	1,603,774	1,603,774	1,603,774	1,603,774	1,603,774	1,603,774
Preference share dividend, SEK	10.00	10.00	20.00	20.00	40.00	40.00

Consolidated statement of comprehensive income

SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2019	Jan-Jun 2020	LTM	Full year 2019
Net profit	112	60	126	59	64	-2
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Reversal of translation differences attributable to divested operations	-	-	-	-	-18	-18
Translation differences for the period	-4	8	-35	28	-52	11
Total	-4	8	-35	28	-70	-8
Total comprehensive income for the period	109	68	91	87	-6	-10
Total comprehensive income attributable to:
Owners of the Parent	107	65	91	84	73	66
Non-controlling interests	2	3	0	3	-79	-77

Condensed consolidated statement of financial position

SEK million	30 Jun 2020	30 Jun 2019	31 Dec 2019
ASSETS
Non-current assets
Intangible assets	2,888	3,180	2,853
Property, plant and equipment	332	333	336
Right-of-use assets	909	918	832
Financial assets	7	6	7
Deferred tax assets	64	54	58
Total non-current assets	4,200	4,491	4,086
Current assets
Inventories	912	935	865
Trade receivables	906	799	574
Other current receivables	244	302	183
Cash and cash equivalents	687	104	447
Total current assets	2,749	2,140	2,070
Total assets	6,949	6,631	6,156
EQUITY AND LIABILITIES
Equity
Equity attributable to owners of the Parent	2,417	2,458	2,351
Non-controlling interests	8	8	9
Total equity	2,426	2,466	2,360
Liabilities
Non-current interest-bearing liabilities	602	623	601
Non-current lease liabilities	634	641	579
Other non-current liabilities and provisions	95	94	60
Deferred tax	290	296	290
Total non-current liabilities	1,622	1,655	1,531
Current interest-bearing liabilities	913	829	689
Current lease liabilities	272	242	225
Trade payables	727	609	706
Other current liabilities	990	830	646
Total current liabilities	2,902	2,510	2,266
Total liabilities	4,523	4,165	3,796
Total equity and liabilities	6,949	6,631	6,156

Condensed consolidated cash flow statement

SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Operating activities
Profit before tax	144	91	162	91	106	34
Adjustment for other non-cash items	144	138	278	258	838	818
Interest paid and received, excl. leases	-6	-12	-14	-21	-31	-38
Lease interest paid	-12	-12	-23	-23	-45	-46
Income tax paid	4	-6	-42	-54	-29	-40
Cash flow from operating activities
before changes in working capital	275	200	361	250	839	728
Cash flow from changes in working capital
Change in inventories	59	5	29	-35	91	27
Change in operating receivables	-172	-172	-302	-244	-28	30
Change in operating liabilities	260	64	262	-33	270	-26
Cash flow from changes in working capital	147	-103	-10	-312	333	31
Cash flow from operating activities	422	96	351	-62	1,172	759
Investing activities
Net investments in property, plant & equipment and intangible assets	-15	-20	-23	-39	-80	-96
Acquisitions and disposals	-33	-65	-146	-65	-208	-127
Net investments in financial assets	0	0	0	-1	0	-1
Cash flow from investing activities	-48	-85	-169	-106	-288	-225
Financing activities
Dividend	-16	-95	-32	-111	-64	-144
Share and warrant buybacks	-	-45	-	-45	-13	-58
New borrowings and repayment of borrowings, excl. leases	-14	218	173	313	-17	123
Repayment of lease liabilities	-64	-68	-113	-132	-223	-241
Other financing activities	-1	1	36	1	24	-11
Cash flow from financing activities	-95	11	63	25	-294	-331
Cash flow for the period	279	23	245	-142	590	203
Cash & cash equivalents at beginning of period	410	80	447	241	104	241
Exchange differences	-2	1	-5	5	-7	3
Cash & cash equivalents at end of period	687	104	687	104	687	447

Consolidated statement of changes in equity

SEK million	Share capital	Other paid-in capital	Other reserves	Retained earnings including net profit	Non controlling interests	Total equity
Closing balance, 31 Dec 2019	10	1,995	26	320	9	2,360
Net profit	-	-	-	125	1	126
Other comprehensive income	-	-	-34	-	-1	-35
Comprehensive income for the period	-	-	-34	125	0	91
Shareholder contributions	-	-	-	-1	1	0
Dividend	-	-	-	1	-1	0
Remeasurement of non-controlling interests	-	-	-	-24	-1	-25
Other owner transactions	-	-	-	0	-	0
Closing balance, 30 Jun 2020	10	1,995	-8	420	8	2,426

SEK million	Share capital	Other paid-in capital	Other reserves	Retained earnings including net profit	Non controlling interests	Total equity
Closing balance, 31 Dec 2018	10	1,995	34	520	7	2,567
Net profit	-	-	-	57	3	59
Other comprehensive income	-	-	27	-	0	28
Comprehensive income for the period	-	-	27	57	3	87
Dividend	-	-	-	-144	-	-144
Share buy-back	-	-	-	-45	-	-45
Remeasurement of non-controlling interests	-	-	-	3	-2	0
Closing balance, 30 Jun 2019	10	1,995	61	392	8	2,466

Key figures2)

SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales, SEK million	1,889	1,776	3,547	3,321	7,059	6,833
Net sales growth, %	6	24	7	19	7	12
EBITDA, SEK million	281	229	439	365	984	909
EBITA, SEK million	181	129	243	166	589	513
EBITA margin, %	10	7	7	5	8	8
EBITA growth, %	41	50	46	22	27	18
EBITA growth per ordinary share, %	41	52	46	23	27	20
EBIT, SEK million	168	115	216	140	206	130
Profit after tax	112	60	126	59	64	-2
Basic earnings per ordinary share, SEK1)	1.19	0.52	1.17	0.31	0.99	0.13
Return on equity, %	3	10	3	10	3	0
Return on adjusted equity, %	0	11	0	11	0	-4
Equity ratio, %	35	37	35	37	35	38
Cash conversion, LTM, %	113	69	113	69	113	83
Operating cash flow, SEK million	212	36	149	-130	802	523
Net debt/adjusted EBITDA, x	1.3	2.4	1.3	2.4	1.3	1.5
Net debt/adjusted EBITDA, average 4 quarters, x	1.7	2.1	1.7	2.1	1.7	2.0
No. of employees	2,021	2,110	2,021	2,110	2,021	2,304
Ordinary shares outstanding	79,406,571	79,406,571	79,406,571	79,406,571	79,406,571	79,406,571
Average no. of ordinary shares outstanding	79,406,571	79,681,296	79,406,571	80,041,930	79,406,571	79,721,639
Preference shares outstanding	1,603,774	1,603,774	1,603,774	1,603,774	1,603,774	1,603,774

1) When calculating earnings per ordinary share, the preference share dividend of SEK 16 million per quarter is deducted for the period.

2) All performance measures, apart from net sales, EBIT, profit after tax and earnings per share, are non-IFRS performance measures – see also Alternative performance measures below.

Notes to consolidated financial statements

Note 1 Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies are consistent with those applied by the Group in the 2019 annual report.

In connection with the Covid-19 pandemic, Volati has applied for support for reductions in social security contributions, sick pay and rent, and for short-time work allowance, reported as a government grant in accordance with IAS 20. Volati has chosen to recognise the grant as a reduction in the cost item to which the grant relates in the period in which the cost has arisen and where there is reasonable assurance that the grant will be received.

A restructuring reserve of SEK 6 million related to costs of a factory closure in the Industry business area has been recognised in the balance sheet in accruals and deferred income. This is recognised as an item affecting comparability.

The Parent Company's interim report has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities. Some figures in this report have been rounded, which means that certain tables do not always add up exactly. This applies where figures are stated in thousands, millions or billions. Pages 1-12 of this report are an integral part of the interim report.

Note 2 Risks and uncertainties

It is the assessment that the Group's material risks and uncertainties are unchanged from those described in detail in the 2019 Annual Report.

Note 3 Segment reporting

At the end of Q2, Volati consisted of four business areas: Trading, Industry, Akademibokhandeln and Consumer.

From 1 January 2020, Volati's chief operating decision-maker monitors the segments' performance with the effects of IFRS 16 included. The 2019 figures are therefore presented including IFRS 16 effects for EBITA and EBIT in order to obtain a comparative view.

Net sales, SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Trading	712	589	1,303	1,085	2,356	2,138
Industry	654	612	1,092	985	2,115	2,008
Akademibokhandeln	298	328	743	781	1,754	1,793
Consumer	225	248	411	470	836	895
Internal eliminations	0	0	-1	-1	-2	-2
Total net sales	1,889	1,776	3,547	3,321	7,059	6,833

Sales between segments are not disclosed as they are immaterial.

EBITA, SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Trading	86	59	125	88	214	178
Industry	77	64	108	79	208	179
Akademibokhandeln	-26	-24	-29	-27	74	76
Consumer	64	47	70	52	130	112
Items affecting comparability	-7	-1	-5	4	18	27
Central costs	-12	-15	-25	-28	-56	-59
Total EBITA	181	129	243	166	589	513
Acquisition-related amortisation	-14	-14	-28	-27	-55	-54
Impairment of intangible assets	0	0	0	0	-328	-328
Net financial items	-23	-25	-53	-49	-101	-96
Profit before tax	144	91	162	91	106	34

EBIT, SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019		Full year 2019
					LTM
Trading	83	57	119	83	203	167
Industry	75	61	104	75	200	171
Akademibokhandeln	-32	-30	-41	-39	51	53
Consumer	61	44	64	46	119	101
Impairment of intangible assets	0	0	0	0	-328	-328
Items affecting comparability	-7	-1	-5	4	18	27
Central costs	-12	-15	-25	-28	-56	-60
Total EBIT	168	115	216	140	206	130

Note 4 Acquisitions and divestments of companies and operations

On 4 December 2019, Volati acquired all shares in Swekip Sweden AB and on 21 January all shares in Heco Nordiska AB. The acquisitions were completed and consolidated with effect from January 2020. Both acquisitions are add-on acquisitions for the Trading business area. The Heco Nordiska AB acquisition included a property, which was sold during Q1 in a sale & leaseback transaction at a price of SEK 48 million. Interest-bearing liabilities of SEK 35 million attributable to Heco Nordiska AB were repaid during Q1. During Q2, the fixed purchase consideration for Swekip AB was settled at an amount of SEK 3 million.

During Q1, Volati's Industry business area acquired a small insolvency estate, which resulted in a gain of SEK 3 million on preparation of the acquisition analysis. This was due to the estimated value of the assets acquired being higher than the acquisition price. The gain is recognised as an item affecting comparability.

On 25 June, Volati acquired all of the shares in Beneli AB. The acquisition is an add-on acquisition for the Industry business area and the Ettiketto business unit. The acquisition is consolidated with effect from the end of June 2020.

The Group's earnings were affected by transaction costs of SEK 1 million for the above acquisitions. Goodwill of SEK 31 million arising from the transactions is supported by several factors, largely attributable to the acquired companies' synergies, employees and market shares.

The table below shows the impact of the acquisitions of Heco Nordiska AB, Swekip Sweden AB and Beneli AB on the Volati Group's balance sheet. As the acquisition of Beneli AB was completed near the end of the quarter, not all analyses of fair values have been completed. The acquisition analysis is therefore considered preliminary and will be finalised in Q3, but it is not expected to have a material impact on the Group's reported earnings or financial position.

Impact of acquisitions on balance sheet (SEK million)

Intangible assets	66
Property, plant and equipment	81
Financial receivables	0
Deferred tax assets	2
Inventories	81
Trade receivables	38
Other receivables	1
Cash and cash equivalents	34
Deferred tax liabilities	-23
Non-current interest-bearing liabilities	-52
Current interest-bearing liabilities	-12
Current liabilities	-45
Net assets	169
Goodwill	31
Purchase price for shares	200
Purchase price for shares	-200
Deferred variable consideration	22
Deferred fixed consideration	5
Cash & cash equivalents in the acquired company at the acquisition date	34
Impact on the Group's cash & cash equivalents on acquisition date	-138

	Net sales		EBITDA		EBITA		EBIT
Impact of acquisitions on balance sheet (SEK million)	Apr-Jun	Jan-Jun	Apr-Jun	Jan-Jun	Apr-Jun	Jan-Jun	Apr-Jun	Jan-Jun
Trading	75	138	10	17	9	16	8	14
Volati Group	75	138	10	17	9	16	8	14

Since the acquisition of Beneli AB is consolidated from the end of June 2020 and had no material effect of the Group´s reported results, Beneli AB is excluded in the table above.

If Beneli had been consolidated with effect from 1 January 2020, its contribution to the Group's income statement, excluding transaction costs, for the period January-June 2020 would have been as follows: sales SEK 72 million, EBITDA SEK 6 million, EBITA SEK 3 million and operating profit SEK -2 million.

Note 5 Financial Instruments

Financial instruments: carrying amounts and fair values by measurement category

	30 Jun 2020	31 Dec 2019
	IFRS 9 category1)	Carrying amount	Fair value	IFRS 9 category1)	Carrying amount	Fair value
Financial assets
Other shares and interests	2	4	4	2	4	4
Other non-current financial assets	1.2	2	2	1.2	2	2
Derivatives held for trading	2	-	-	2	0	0
Trade receivables	1	906	906	1	574	574
Cash and cash equivalents	1	687	687	1	447	447
Financial liabilities
Bonds	4	600	579	4	600	613
Loans from credit institutions	4	907	907	4	601	601
Derivatives held for trading	5	0	0	5	0	0
Trade payables	4	727	727	4	706	706
Additional consideration	5	22	22	5	6	6
Put options	6	80	80	6	56	56
Other current liabilities	4	-	-	4	32	32

1) applicable IFRS 9 categories

1= Financial assets at amortised cost

2=Financial assets at fair value through profit or loss

3= Financial assets at fair value through OCI

4= Financial liabilities at amortised cost

5= Financial liabilities at fair value through profit or loss

6= Financial liabilities at fair value through equity

For a description of what is included in the various items and the measurement method, see note 22 of the 2019 annual report.

Financial instruments measured at fair value

	30 Jun 2020				31 Dec 2019
	Carrying amounts	Quoted prices Level 1	Observable inputs Level 2	Unobserv able inputs Level 3	Carrying amounts	Quoted prices Level 1	Observable inputs Level 2	Unobserv able inputs Level 3
Financial assets
Other shares and interests	4	-	-	4	4	-	-	4
Derivatives	-	-	-	-	-	-	-	-
Financial liabilities
Derivatives	0	0	-	-	0	0	-	-
Put options	80	-	-	80	56	-	-	56
Additional consideration 1)	22	-	-	22	6	-	-	6

1) Additional consideration is often contingent on the financial performance of the acquired business over a specific period and is measured on the basis of management's best estimate. Discounting to present value is applied for large amounts or long durations.

Note 6 Alternative performance measures

The financial reports published by Volati include alternative performance measures (APMs), which supplement the metrics defined or specified in the applicable rules for financial reporting, such as revenue, profit or loss and earnings per share. APMs are specified when they, in their context, provide clearer or more in-depth data than those metrics defined in the applicable rules for financial reporting. The basis for APMs is that they are used by management to assess financial performance and can thus be considered to give analysts and other stakeholders valuable information.

Volati regularly uses APMs as a complement to the key metrics defined in IFRS. The APMs derive from Volati's consolidated accounts and do not comprise measures of financial performance or liquidity in accordance with IFRS and, accordingly, should not be considered as alternatives to net income, operating profit or other key metrics that are derived pursuant to IFRS or as an alternative to cash flow as a measure of consolidated liquidity. As a result of IFRS 16 Leases, which came into effect on 1 January 2019, Volati changed the definition in 2019 to exclude the effects of IFRS 16 with a view to increasing the comparability of some of its alternative performance measures with previous years. Most of these APMs include IFRS 16 with effect from 1 January 2020, see below. Volati's new financial targets, which were adopted at the beginning of the year, have resulted in the revision of some APMs, the introduction of new APMs and the removal of some previous APMs related to previous financial targets.

The following table sets out definitions for Volati's key figures. The calculation of APMs is presented separately below.

Non-IFRS APMs and key metrics	Description	Reason for use
EBITDA	Earnings before interest, taxes, depreciation and amortisation.	Together with EBITA, EBITA provides a view of the profit generated by operating activities.
Adjusted EBITDA	Calculated as EBITDA, excl. IFRS 16 adjustments, for the last 12 months for the companies included in the Group at the reporting date, as if they had been owned for the last 12 months, and adjusted for transaction-related costs, restructuring costs, remeasurement of additional consideration, capital gains/losses on the sale of operations and other income and expenses considered to be non-recurring.	Adjusted EBITDA provides management and investors with a view of the size of the operations included in the Group at the reporting date, as it does not include items not directly attributable to day-to-day operations. Also used in our covenant calculations for the bank.
EBITA	Earnings before interest, taxes and amortisation.	Together with EBITDA, EBITA provides a view of the profit generated by operating activities.
EBITA excl. items affecting comparability	Calculated as EBITA, adjusted for transaction-related costs, restructuring costs, remeasurement of additional consideration, capital gains/losses on the sale of operations and properties, and other income and expenses considered to be non-recurring.	Used by management to monitor the underlying earnings growth for the Group.
EBITA growth per ordinary share	Calculated as EBITA divided by the number of ordinary shares outstanding at the end of the period compared with the same period the previous year.	Used to illustrate earnings per ordinary share generated by operating activities.
Organic EBITA growth	Calculated as EBITA excluding items affecting comparability for the period, adjusted for total acquired and divested EBITA and currency effects, compared with EBITA excluding items affecting comparability for the same period the previous year, as if the relevant business unit had been owned for the same length of time in the comparative period as the length of time it has been legally consolidated in the current period.	Used by management to monitor the underlying earnings growth for existing operations.
Return on equity	Net profit (including share attributable to non-controlling interests) divided by average equity for the last four quarters (including share attributable to non-controlling interests).	Shows the return generated on the total capital invested in the Company by shareholders.
Return on adjusted equity	Net profit (including share attributable to non-controlling interests) less the preference share dividend divided by average equity for the last four quarters (including share attributable to non-controlling interests) less the preference share capital.	Shows the underlying return generated on ordinary share capital invested in the Company by owners of ordinary shares.
Return on capital employed (ROCE excl. GW)	EBITA excluding items affecting comparability for the last 12 months divided by average capital employed for the last 12 months.	Shows the return on capital employed generated by each business area and the Group without taking into consideration acquisition-related intangible assets with indefinite useful lives.
Return on capital employed including goodwill (ROCE incl. GW)	EBITA excluding items affecting comparability for the last 12 months divided by average capital employed including goodwill and other intangible assets with indefinite useful lives for the last 12 months.	Shows the return on capital employed generated by each business area and the Group.

Non-IFRS APMs and key metrics	Reason for use
Equity ratio	Equity (including share attributable to non-controlling interests) as a percentage of total assets.	The metric can be used to assess financial risk.
Cash conversion	Calculated as operating cash flow for the last twelve months divided by EBITDA excl. IFRS 16.	Cash conversion is used by management to monitor how efficiently the Company is managing working capital and ongoing investments.
Operating cash flow	Calculated as EBITDA, excl. IFRS 16, adjusted for non cash items, less the difference between investments in/divestments of property, plant & equipment and intangible assets, after adjustment for cash flow from changes in working capital, excl. IFRS 16.	Operating cash flow is used by management to monitor cash flow generated by operating activities.
Net debt/Adjusted EBITDA	Net debt, excl. IFRS 16 adjustments, at the end of the period in relation to adjusted EBITDA for the period,	The metric can be used to assess financial risk.
Net debt/Adjusted EBITDA average 4 quarters	Net debt, excl. IFRS 16 adjustments, at the end of the period in relation to adjusted EBITDA for the period, expressed as an average over the four most recent quarters.	The metric can be used to assess financial risk.

Calculations of alternative performance measures are presented separately below.

	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Adjusted EBITDA, LTM
EBITDA, LTM	984	727	984	727	984	909
Reversal of IFRS 16 effect	-277	-139	-277	-139	-277	-282
Acquired and divested companies	16	16	16	16	16	1
Items affecting comparability*	-23	-10	-23	-10	-23	-23
Adjusted EBITDA, LTM	700	593	700	593	700	604

*Items affecting comparability include transaction-related costs, restructuring costs, remeasurement of additional consideration, capital gains/losses on the sale of operations and properties, and other income and expenses considered to be non-recurring.

Calculation of organic EBITA growth, %

Organic EBITA growth, %	38	2	42	3	19	4
Comparative figure for previous year	182	88	235	141	527	440
Currency effects	1	0	1	0	0	0
Total acquired/divested EBITA	-7	-37	-15	-14	-27	-26
EBITA excl. items affecting comparability	188	125	249	156	554	467
Adjustment for items affecting comparability	7	3	5	-1	-17	-23
Reversal of IFRS 16 effect	-	-7	-	-9	-18	-22
EBITA	181	129	243	166	589	513

Calculation of EBITA growth per ordinary

share, %
EBITA	181	129	243	166	589	513
No. of ordinary shares outstanding at end of period	79,406,571	79,406,571	79,406,571	79,406,571	79,406,571	79,406,571
EBITA per ordinary share, SEK	2.28	1.62	3.06	2.10	7.42	6.45
EBITA per ordinary share for same period
in previous year	1.62	1.07	2.10	1.70	5.83	5.38
EBITA growth per ordinary share, %	41	52	46	23	27	20

	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Basic earnings per ordinary share, SEK
Net profit attributable to owners of the Parent	111	58	125	57	143	74
Deduction for preference share dividend	16	16	32	32	64	64
Net profit attributable to owners of the Parent, adjusted for preference share dividend	95	42	93	25	78	10
Average no. of ordinary shares	79,406,571	79,681,296	79,406,571	80,041,930	79,406,571	79,721,639
Earnings per ordinary share, SEK	1.19	0.52	1.17	0.31	0.99	0.13
Calculation of return on equity
(A) Net profit, LTM, including non-controlling interests	64	255	64	255	64	-2
Adjustment for preference share dividends, including dividends accrued but not yet paid	-64	-64	-64	-64	-64	-64
(B) Net profit, adjusted	0	191	0	191	0	-67
(C) Average total equity	2,340	2,525	2,340	2,525	2,340	2,411
(D) Average adjusted equity	1,511	1,697	1,511	1,697	1,511	1,583
(A/C) Return on total equity, %	3	10	3	10	3	0
(B/D) Return on adjusted equity, %	0	11	0	11	0	-4
Calculation of equity ratio, %
Equity including non-controlling interests	2,426	2,466	2,426	2,466	2,426	2,360
Total assets	6,949	6,631	6,949	6,631	6,949	6,156
Equity ratio, %	35	37	35	37	35	38
Calculation of operating cash flow and cash conversion, %
EBITDA	281	229	439	365	984	909
Reversal of IFRS 16 effect	-62	-72	-134	-139	-277	-282
(A) EBITDA excl. IFRS 16 effect	219	157	306	226	707	627
(B) adjustment for non-cash items	7	2	3	-3	-29	-35
Change in working capital*	1	-104	-137	-314	204	28
Net investments in property, plant & equipment and intangible assets	-15	-20	-23	-39	-80	-96
(C) Operating cash flow	212	36	149	-130	802	523
(C/A) Cash conversion, %	97	23	49	-57	113	83

*Excluding positive effects from tax relief attributable to deferral of payment of social security contributions, withholding tax and VAT.

Calculation of net debt/adjusted EBITDA,

LTM, x
Net debt
Cash & cash equivalents and other interest bearing assets	-689	-106	-689	-106	-689	-449
Non-current interest-bearing liabilities	648	647	648	648	648	646
Current interest-bearing liabilities	934	862	934	862	934	711
Net debt	893	1,404	893	1,404	893	907
Adjusted EBITDA	706	593	706	593	706	604
Net debt/adjusted EBITDA, x	1.3	2.4	1.26	2.4	1.3	1.5
Calculation of net debt/adjusted EBITDA, average last 4 quarters, x
Current quarter	1.3	2.4	1.3	2.4	1.3	1.5
Previous quarter	1.9	2.1	1.9	2.1	1.9	2.2
Previous quarter -1	1.5	1.7	1.5	1.7	1.5	2.4
Previous quarter -2	2.2	2.1	2.2	2.1	2.2	2.1
Average last four quarters, x	1.7	2.1	1.7	2.1	1.7	2.0

			Akademi
ROCE %, 30 June 2020	Trading	Industry	bokhandeln	Consumer	Central costs	Volati Group
1) EBITA, LTM	214	208	74	130	-56	571
Capital employed, 30 June 2020
Intangible assets	1,008	581	826	473		2,888
Adjustment for goodwill, patent/technology, brands	-1,003	-561	-765	-429		-2,758
Property, plant and equipment	29	224	28	36		332
Right-of-use assets	206	301	241	155		909
Operating receivables	877	856	203	50		1,989
Operating liabilities	-471	-565	-258	-134		-1,434
Capital employed, 30 June 2020	646	837	275	152		1,926
Adjustment for average capital employed, LTM	17	-1	-11	-2	0	12
2) Average capital employed, LTM	662	836	265	149		1,938
ROCE excl. GW 1)/2), %	32	25	28	87		29
3) Average capital employed, LTM, incl. goodwill and other intangible assets with indefinite useful lives	1,551	1,294	915	636		4,435
ROCE incl. goodwill 1)/3), %	14	16	8	20		13

			Akademi
ROCE %, 31 December 2019	Trading	Industry	bokhandeln	Consumer	Central costs	Volati Group
1) EBITA, LTM	178	179	76	112	-59	486
Capital employed, 31 December 2019
Intangible assets	977	538	836	501		2,853
Adjustment for goodwill, patent/technology, brands	-973	-520	-774	-451		-2,717
Property, plant and equipment	31	223	30	37		336
Right-of-use assets	189	302	213	121		832
Operating receivables	674	620	262	53		1,612
Operating liabilities	-301	-403	-413	-132		-1,261
Capital employed, 31 December 2019	597	760	155	128		1,655
Adjustment for average capital employed, LTM	49	96	138	19	0	301
2) Average capital employed, LTM	646	856	293	147		1,956
ROCE excl. GW 1)/2), %	28	21	26	76		25
3) Average capital employed, LTM, incl.
goodwill and other intangible assets with indefinite useful lives	1,507	1,305	943	804		4,586
ROCE incl. goodwill 1)/3), %	12	14	8	14		11

Parent Company Volati AB (publ)

The Parent Company Volati AB acts as a holding company and the members of Volati's management are employed within the Parent Company.

Parent Company condensed income statement

SEK million	Apr-Jun 2020	Apr-Jun 2019	Jan-Jun 2020	Jan-Jun 2019	LTM	Full year 2019
Net sales	6	4	12	9	27	24
Operating expenses	-13	-14	-26	-28	-58	-59
Operating profit1)	-8	-10	-15	-19	-31	-35
Profit/loss from financial investments	197	494	240	529	212	501
Profit after financial items	189	484	225	510	181	465
Appropriations	-	-	-	-	39	39
Tax for the period	-6	-2	-14	-8	-6	0
Net profit	183	482	211	502	214	504

Comprehensive income for the period, Parent Company

Comprehensive income for the period	183	482	211	502	214	504

1) Operating profit includes bank charges.

Parent Company condensed statement of financial position

SEK million	30 Jun 2020	31 Dec 2019
Non-current assets	2,036	2,029
Current assets	4,428	5,807
Total assets	6,464	7,836
Equity	3,758	3,547
Untaxed reserves	48	48
Pension obligations	1	1
Non-current liabilities	621	618
Current liabilities	2,035	3,622
Total equity and liabilities	6,464	7,836

SEK million Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Operating income Net sales 1,889 1,658 1,801 1,711 1,776 1,544 1,831 1,470 1,428 1,355 Operating expenses Raw materials and supplies -1,082 -927 -955 -965 -981 -856 -997 -830 -784 -764 Other external costs -141 -177 -166 -157 -164 -185 -223 -202 -216 -212 Personnel expenses -386 -394 -405 -347 -406 -376 -409 -292 -312 -304 Other operating income and expenses 1 -2 3 11 3 8 7 6 -1 Capital gain/loss on sale of Group company - - 13 - - - - - - EBITDA 281 159 291 253 229 136 210 152 114 Depreciation -99 -97 -98 -101 -100 -98 -36 -29 -28									Quarterly overview
EBITA 181 62 194 153 129 37 173 123 86
Acquisition-related amortisation -14 -14 -14 -342 -14 -13 -26 -13 -16
EBIT 168 48 -180 -189 115 24 147 110 70
Finance income and costs
Finance income and costs -23 -30 -31 -17 -25 -24 -6 -14 -14
Profit before tax 144 18 149 -206 91 0 141 96 55
Tax 32 -4 14 -19 -30 -1 -19 -22 5
Net profit 112 14 163 -225 60 -1 121 74 61
Attributable to:
Owners of the Parent 111 14 160 -206 58 -1 121 74 60
Non-controlling interests 2 -1 3 -19 3 0 0 1 1
Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Net sales, SEK million Q4 2018 Q3 2018 Q2 2018 Q1 2018
Trading 712 590 518 535 589 496 509 524 607
Industry 654 438 487 536 612 373 467 334 257
Akademibokhandeln 298 444 595 416 328 453 634 398 315
Consumer 225 186 201 224 248 222 222 214 249
Internal eliminations 0 -1 0 0 0 0 -1 0 0
Total net sales 1,889 1,658 1,801 1,711 1,776 1,544 1,831 1,470 1,428 1,355
53									EBITA, SEK million
38 -34	32 54	29		59	50	40	38	86	Trading
41	30 44	15		63	51	49	31	77	Industry
-	101 12	-3		-24	18	86	-3	-26	Akademibokhandeln
-12	19 27	5		47	34	26	6	64	Consumer
Total EBITA 181 62 194 153 129 37 173 123 86	12 - -20 -14	5	-14	-1 -15	13 -13	11 -18	3 -14	-7 -12	Items affecting comparability Central costs