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Year-end report 2023

Strong finish to a successful year

The year ended strongly with a fourth quarter EBITA of SEK 15.7 (5.4) million, totaling an EBITA of SEK 69.5 (40.5) million for the year. With a focus on customer businesses at the heart of society's challenges and continued strive for decentralization, the year has shown good growth in order intake, strong sales growth, and significantly improved earnings.

Fourth quarter 2023
• Order intake totaled SEK 211.6 (257.6) million, a contraction of 18 percent.
• Net sales for the fourth quarter were SEK 234.9 (247.7) million, down 5.2 percent, whereof 4.8 percentage points organic.
• EBITA totaled SEK 15.7 (5.4) million, an increase of 190 percent. EBITA margin was 6.7 percent (2.2).
• Earnings per share before and after dilution were SEK 0.58 (0.10).
• Cash flow from operating activities was SEK 24.4 (21.2) million. Total cash flow for the period was SEK -7.6 (11.0) million, including voluntary amortization of SEK 25 million.
• The Board of Directors proposes a dividend of SEK 0.90 (0.60) per share.

January 1 to December 31, 2023
• Order intake totaled SEK 975.2 (915.7) million, an increase of 6.5 percent.
• Net sales totaled SEK 942.8 (842.0) million, an increase of 12.0 percent.
• EBITA totaled SEK 69.5 (40.5) million, an increase of 71.6 percent. EBITA margin was 7.3 percent (4.8).
• Earnings per share before and after dilution were SEK 2.42 (1.30).
• Cash flow from operating activities was SEK 81.5 (25.1) million. Total cash flow for the period was SEK 14.7 (-24.1) million.

Significant events in the fourth quarter
• The Norwegian subsidiary Christian Berner AS signed a major contract for the delivery of vibration damping material for a railway tunnel in Drammen.

Significant events after the end of the reporting period
• There were no significant events after the end of the reporting period.

A strong finish to an exciting year
The last quarter of the year saw an almost threefold increase in EBITA compared to the previous year. We closed the full year with almost SEK 70 million in EBITA, the highest result in the Group's history and more than 70 percent better than the previous year. We see the strength of our various businesses driven by the societal transformation, and the force that is released when our subsidiaries and employees are given more freedom to build their businesses around their customers, suppliers and employees.
Our businesses have a broad base in many different markets, but the common thread is that we operate at the heart of the
societal challenges. Over the past year, we have seen both increased inflationary pressures and subsequent interest rate
hikes and the continued impact of more difficult and costly energy supplies on our environment. The clearest sign for us
has at times been slightly longer decision-making processes, resulting in a slightly lower order intake in the quarter. With
orders 6.5 percent higher than last year for the full year and exceeding sales for the year, we have ended the year with a
larger order book than we started the year with, ensuring prime conditions for the coming quarters. Again, you can see the
strength of our Group, where different businesses take turns towing each other.
For example, in 2023 we have seen excellent growth in flow technology and electric steam generation, as well as our Finnish and Norwegian operations overall, while the smaller portion that focuses on building construction has had significantly lower activity during the year and will probably continue this trend well into 2024. An example of a growing area for both us and the world is carbon capture, where Swedenborg's sealed dampers enable systems with both lower operating costs and lower energy requirements.
Some parts of Technology & Distribution have been impacted by the interest rate hikes. First, decision-making processes
have slowed, affecting the second half of the year, but underlying demand exists in several areas. The continued investment
in rail transport, for example, is exciting and generates business for us. Another such example is our Norwegian subsidiary
Christian Berner AS, that won a contract of more than NOK 10 million for vibration damping material for the railway tunnel in Drammen. This makes for a calmer and quieter environment for activities on and around the new tunnel – while allowing for longer service intervals. We create innovative technical solutions for a sustainable society.

EBITA almost tripled in the fourth quarter
We continue to develop the decentralized structure and help each subsidiary towards its potential. During the year we have
been able to see the effects of our work, achieving the highest result in the Group's history and nearly tripling EBITA in the
fourth quarter. Although much has been done, some work remains, and we are not yet seeing the full impact of measures
already implemented. The pace of organic improvements is, however expected to slow somewhat going forward. Instead,
we hope to free up more time for acquisitions. We closely monitor the global situation and are ready to take action if we see a deterioration in the future.
The margin for the year ended up at over 7 percent, almost 3 percentage points better than the previous year, and when all our companies perform at their potential, we can do more. As we improve the results, we also see the cash generation our businesses generate. In anticipation of being able to put this cash to work, we chose to pay SEK 25 million of our outstanding debt during the quarter, to avoid incurring interest costs unnecessarily. We continue having good possibilities for financing, creating great flexibility.
We look forward to 2024.

Caroline Reuterskiöld
President and CEO, Christian Berner Tech Trade AB