PRESS RELEASE REGULATORY Interim report January – September 2021 12 Nov 2021 THIRD QUARTER 2021 Revenue increased by 47% to SEK 1,661m (1,129) Operating profit increased by 37% to SEK 147m (107) Operating margin decreased to 8.9% (9.5) The result for the period increased by 34% to SEK 109m (81) Basic earnings per share amounted to SEK 7.48 (5.57) Cash flows from operating activities amounted to SEK 327m (100) JANUARY- SEPTEMBER 2021 Revenue increased by 31% to SEK 4,517m (3,450) Operating profit increased by 41% to SEK 371m (263) Operating margin increased to 8.2% (7.6) The result for the period increased by 41% to SEK 251m (177) Basic earnings per share amounted to SEK 17.27 (12.21) Cash flows from operating activities amounted to SEK 538m (514) Revenue 2021 Jul-Sep 1,661 2020 Jul-Sep 1,129 % 47% 2021 Jan-Sep 4,517 2020 Jan-Sep 3,450 % 31% 2020 Full year 4,635 Gross profit 2021 Jul-Sep 324 2020 Jul-Sep 221 % 46% 2021 Jan-Sep 825 2020 Jan-Sep 610 % 35% 2020 Full year 797 Operating profit 2021 Jul-Sep 147 2020 Jul-Sep 107 % 37% 2021 Jan-Sep 371 2020 Jan-Sep 263 % 41% 2020 Full year 328 Result for the period 2021 Jul-Sep 109 2020 Jul-Sep 81 % 34% 2021 Jan-Sep 251 2020 Jan-Sep 177 % 41% 2020 Full year 222 Result per ordinary share, SEK* 2021 Jul-Sep 7.48 2020 Jul-Sep 5.57 % 34% 2021 Jan-Sep 17.27 2020 Jan-Sep 12.21 % 41% 2020 Full year 15.25 Cash flow from operations 2021 Jul-Sep 327 2020 Jul-Sep 100 % 2021 Jan-Sep 538 2020 Jan-Sep 514 % 2020 Full year 693 Net debt (cash) 2021 Jul-Sep -75 2020 Jul-Sep 83 % 2021 Jan-Sep -75 2020 Jan-Sep 83 % 2020 Full year -20 Gross margin, % 2021 Jul-Sep 19.5% 2020 Jul-Sep 19.6% % -0.1pp 2021 Jan-Sep 18.3% 2020 Jan-Sep 17.7% % 0.6pp 2020 Full year 17.2% Operating margin, % 2021 Jul-Sep 8.9% 2020 Jul-Sep 9.5% % -0.6pp 2021 Jan-Sep 8.2% 2020 Jan-Sep 7.6% % 0.6pp 2020 Full year 7.1% Working capital/LTM Revenue, % 2021 Jul-Sep 0% 2020 Jul-Sep 8% % -8.1pp 2021 Jan-Sep 0% 2020 Jan-Sep 8% % -8.1pp 2020 Full year 5% Equity/total assets, % 2021 Jul-Sep 27% 2020 Jul-Sep 33% % -6.1pp 2021 Jan-Sep 27% 2020 Jan-Sep 33% % -6.1pp 2020 Full year 31% Return on capital employed, % 2021 Jul-Sep 27% 2020 Jul-Sep 25% % 2.0pp 2021 Jan-Sep 27% 2020 Jan-Sep 25% % 2.0pp 2020 Full year 20% Return on equity, % 2021 Jul-Sep 48% 2020 Jul-Sep 44% % 4.6pp 2021 Jan-Sep 48% 2020 Jan-Sep 44% % 4.6pp 2020 Full year 40% Lars Corneliusson, President and CEO, comments: In the third quarter of 2021, Ferronordic achieved another record result. Total revenue grew by 47% to SEK 1,661m and the operating profit was SEK 147m with an operating margin of 8.9%. Working capital remained low as demand outpaced limited supply. Cash flows from operating activities were strong and contributed to the Group moving back to a net cash position. In Russia/CIS, the market for construction equipment remained strong as commodity prices grew and infrastructure investments continued. Customer machine utilisation also increased, which together with our digital sales efforts contributed to good growth in aftermarket sales. In contracting services, we continued to develop our project in Norilsk. Total revenue in Russia/CIS grew by 48% and the operating profit by 44% to SEK 179m. In October, we announced the expansion of our partnership with Sandvik on mobile crushers and screens to also become the distributor of the bigger and more complex stationary crushers and screens. In Germany, the total market for heavy trucks was largely flat. In our sales area, the market declined by 13% while our new trucks sales increased by 25% in units and we gained further market share. Our used trucks business, launched at the end of 2020, continued to grow. Our aftermarket sales improved, partly due to acquisitions. During the third quarter, we accelerated efforts to restructure and improve our organisation. Partly as a result restructuring costs, operating result decreased compared to last year. We continue to build a customer centric platform and develop our network. In the quarter, we started construction of our new service and sales hub for the Hannover region and also announced the acquisition of a workshop in Bergstrasse. Current uncertainty in our markets mainly relates to supply chain constraints, which we expect to continue well into 2022. In a longer perspective, we see strong underlying fundamentals and business opportunities in our markets. About Ferronordic Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer of Volvo Construction Equipment, Sandvik Rock Processing Solutions and certain other brands in all of Russia and Kazakhstan, aftermarket partner of Volvo Trucks and Renault Trucks in part of Russia, and dealer of Volvo Trucks and Renault Trucks in part of Germany. The company also offers contracting services where it owns and operates equipment to carry out works for customers. Ferronordic began its operations in 2010 and now has approx. 100 outlets and approx. 1,800 employees. Ferronordic’s vision is to be regarded as the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com For investors and analysts, please contact: Erik Danemar, Group CFO and Head of Investor Relations, Tel. +46 73 660 72 31, or erik.danemar@ferronordic.com For media and journalists, please contact: Ceren Wende, Director, Marketing & Communication, Tel. +46 73 658 59 80, or ceren.wende@ferronordic.com This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 12 November 2021, 07:30 CET Interim report January – September 2021 256147 / PDF / 256.147 KB *Before dilution Stay updated! Subscribe to our reports and press releases Annual reports Press releases English Swedish SIGN ME UP I have read and accepted Ferronordic's Privacy Policy Latest press releases 28 Oct 2021 23:30 CET PRESS RELEASE REGULATORY Invitation to Ferronordic’s investor presentation 12 November 2021 Ferronordic’s interim report for the third quarter of 2021 will be published on 12 November 2021 at 07:30 CET. A presentation of the report will be held the same day at 10:00 CET. GO TO PRESS RELEASE 25 Oct 2021 20:56 CET PRESS RELEASE REGULATORY Ferronordic expands cooperation with Sandvik in Russia Ferronordic has entered into an agreement to become the distributor of Sandvik stationary crushing and screening equipment in Russia. Under the agreement, Ferronordic will be responsible for sales, service and repair of Sandvik’s stationary crushing equipment throughout the country. Over time, Ferronordic expects that sales related to the new products may represent approx. 7% of its revenue in Russia. 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