Brødrene A & O Johansen A/S : AO - Q1 2023

Interim Financial Report

for the Period

1 January - 31 March 2023

Brødrene A & O Johansen A/S

Rørvang 3 * DK-2620 Albertslund * Denmark

Tel: [phone] * www.ao.dk

CVR (Central Business Register) No.: 58 21 06 17

Company Announcement No. 5/2023

1/17

Brødrene A & O Johansen A/S

Interim financial report for Q1 2023

Contents

Highlights for the first quarter of 2023	page 3
Financial and operating data for the AO Group	page 5
Management's review	page 6-8
Company announcements in 2023	page 9
Management's statement	page 10
Income statement and statement of comprehensive income	page 11
Balance sheet	page 12-13
Cash flow statement	page 14
Statement of changes in equity	page 15
Notes	page 16-17

Company Announcement No. 5/2023

2/17

Brødrene A & O Johansen A/S

Interim financial report for Q1 2023

The Board of Directors has approved the Group's interim financial report for the period 1 January - 31 March 2023.

Highlights for the first quarter of 2023

• Consolidated revenue for the first quarter of 2023 was DKK 1,404.3 million against 1.251,3 million for the first quarter of 2022. The growth of 12.2% lived up to expectations. Growth was strongest at the beginning of the quarter, and first-quarter sales were also in line with previous expectations for 2023.
• Compared with the first quarter of 2022, the gross profit margin for the first quarter of 2023 increased by 0.2 percentage point.
• EBITDA for the first quarter of 2023 totalled DKK 121.9 million, corresponding to an EBITDA margin of 8.7%, against DKK 110.8 million and 8.9% for the first quarter of 2022.
• Profit before tax (EBT) for the first quarter of 2023 was DKK 83.3 million, which is DKK 2.6 million less than for the first quarter of last year. The increase in EBITDA is offset by higher depreciation and financing costs.
• As at 31 March 2023, the Group's total assets amounted to DKK 3,424.0 million, which is DKK 538.1 million more than at the same time in 2022. The increase is primarily attributable to investments in property, plant and equipment, increasing inventories and trade receivables.
• As at 31 March 2023, the Group's equity totalled DKK 1,329.1 million, which is DKK 144.4 million more than at the same time in 2022. The solvency ratio was 38.8% against 41.4% at 31 March 2022.
• Cash flow from operating activities for the first quarter of 2023 was DKK -154.0 million, which is DKK 43.8 million less than for the same period last year. The decrease is primarily attributable to increased working capital, which is affected by the decision to maintain higher than normal safety stocks to ensure product availability in situations where there has been shortage of supply. In addition, the increase is driven by the fact that a higher proportion of revenue relates to B2B customers with credit facilities. Investments for the first quarter of 2023 totalled DKK 31.2 million, compared with DKK 60.4 million for the first quarter of 2022. These investments are primarily related to store network development, including the introduction of EA ranges in relevant AO stores.
• As at 31 March 2023, net interest-bearing debt totalled DKK 853.5 million against DKK 488.7 million at the same time in 2022. Net interest-bearing debt was 1.7 times the Last Twelve Months EBITDA.

Other highlights for the first three months of 2023:

• During the quarter, B2B activities were high and showed a growth of 15.9%. As expected, a minor slowdown in activities occurred in March. Private consumers reacted fast to cost inflation, and the decrease in demand continued from the fourth quarter into the first quarter. The B2C sales index reached 87.9 in the first quarter.
• The Annual General Meeting approved the recommended consolidated and parent company financial statements as well as the allocation of profits, including a dividend payment of DKK 5.25 per share of DKK 1. The new candidates, Ann Fogelgren and Peter Gath, were elected and the Board of Directors constituted itself with Henning Dyremose as Chairman and Erik Holm as Deputy Chairman. The Board of Directors was authorised to acquire own B shares equivalent to a total of 10% of the Company's share capital.

Company Announcement No. 5/2023

3/17

Brødrene A & O Johansen A/S

Interim financial report for Q1 2023

Expectations for the year

The first quarter of 2023 confirmed expectations of a strong first quarter. Expectations for 2023 are unchanged and are as follows:

Revenue of DKK 5,250-5,450 million, EBITDA in the range of DKK 435-465 million and earnings before tax in the range of DKK 300-330 million.

These expectations are based on the assumption that demand will be negatively impacted by high cost inflation and increased interest rates; factors that are expected to dampen activities in the building and construction industry. Revenue growth is expected to be flat in the second quarter, and negative growth is expected in the second half of 2023. Revenue for the full year of 2023 is expected to be at the same level as in 2022.

	Albertslund, 27 April 2023
Niels A. Johansen	Per Toelstang
CEO	CFO

Company Announcement No. 5/2023

4/17

Brødrene A & O Johansen A/S

Interim financial report for Q1 2023

Financial and operating data for the AO Group

(DKKm)
Key figures	Q1	Q1	Full Year
2023	2022	2022
Consolidated revenue	1,404.3	1,251.3	5,375.0
Gross margin	333.9	295.0	1,310.3
Earnings before interest, taxes, depreciation
and amortisation (EBITDA)	121.9	110.8	491.6
Profit or loss before financial income and expenses (EBIT)	89.4	84.9	383.6
Financial income and expenses, net	(6.1)	1.0	(6.1)
Profit or loss before tax (EBT)	83.3	85.9	377.4
Tax on profit or loss for the period	(18.2)	(18.8)	(83.0)
Net profit or loss for the period	65.2	67.0	294.5
Non-current assets	1,731.9	1,527.9	1,727.3
Current assets	1,692.1	1,358.0	1,591.0
Total assets	3,424.0	2,885.9	3,318.3
Share capital	28.0	28.0	28.0
Equity	1,329.1	1,184.8	1,407.5
Non-current liabilities	534.6	297.8	539.5
Current liabilities	1,560.3	1,403.4	1,371.4
Cash flow from operating activities	(154.0)	(110.2)	215.8
Cash flow from investing activities	(31.2)	(60.4)	(333.3)
Of which investments in property, plant and
equipment, net	(22.7)	(53.3)	(164.5)
Cash flow from financing activities	150.6	34.4	15.5
Cash flow for the period	(34.6)	(136.3)	(102.0)
Financial ratios*
Gross profit margin	23.8%	23.6%	24.4%
EBITDA margin	8.7%	8.9%	9.1%
Profit margin	6.4%	6.8%	7.1%
Return on capital employed**	2.7%	3.0%	12.7%
Return on equity**	4.8%	5.5%	22.2%
Net gearing	1.7	1.2	1.1
Solvency ratio	38.8%	41.1%	42.4%
Book value	47.5	42.3	50.3
Share price at the end of the period	81.1	109.0	83.11
Earnings per share (EPS Basic), DKK***	2.4	2.5	10.8
Diluted earnings per share (EPS-D), DKK***	2.4	2.5	10.8
Average number of employees	847	737	822
Average number of employees, incl. external temporary workers	918	809	889

• Other financial ratios have been calculated in accordance with CFA Society Denmark's 'Recommendations and Financial Ratios'.
• Not translated into full-year figures.
• Basic EPS and diluted EPS have been calculated in accordance with IAS 33.

Company Announcement No. 5/2023

5/17