Brødrene A & O Johansen A/S : AO - Q1-3 2022

Interim Financial Report

for the Period

1 January - 30 September 2022

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. 13/2022

1/17

Brødrene A & O Johansen A/S

Interim financial report for Q1-3 2022

Contents

Highlights for the third quarter and first nine months of 2022......................................	page 3-4
Financial and operating data for the AO Group ..........................................................	page 5
Management's review ................................................................................................	page 6-9
Management's statement ..........................................................................................	page 10
Income statement and statement of comprehensive income .....................................	page 11
Balance sheet as at 30 September 2022....................................................................	page 12-13
Cash flow statement...................................................................................................	page 14
Statement of changes in equity ..................................................................................	page 15
Notes..........................................................................................................................	page 16-17

Company Announcement No. 13/2022

2/17

Brødrene A & O Johansen A/S

Interim financial report for Q1-3 2022

The Board of Directors has approved the Group's interim financial report for the period 1 January - 30 September 2022.

Highlights for the third quarter and first nine months of 2022

• Consolidated revenue for the third quarter of 2022 was DKK 1,328.6 million, which is DKK 214.2 million, or 19.2%, more than for the third quarter of 2021. Organic growth in the third quarter was 14.6% driven by the B2B business. Consolidated revenue for the first nine months of 2022 was DKK 3,898.8 million, which is DKK 364.9 million, or 10.3%, more than for the same period last year. The gross profit margin for the first three quarters increased by
• 1. percentage point compared with the same period of 2021.
• Operating profit (EBIT) for the third quarter of 2022 was DKK 93.9 million, corresponding to a profit margin of 7.1%, against DKK 75.1 million and 6.7% for the third quarter of 2021. Operating profit (EBIT) for the first nine months of 2022 was DKK 271.1 million, corresponding to a profit margin of 7.0%, against DKK 233.8 million and 6.6% for the first three quarters of 2021. The increased earnings are at the upper end of the previously announced expectations and are driven by the increasing revenue and the increase in the gross profit margin.
• Profit before tax (EBT) for the third quarter of 2022 was DKK 91.6 million, which is DKK 14.1 million more than in the third quarter of last year. Profit before tax for the first nine months of 2022 amounted to DKK 268.5 million, corresponding to an increase of DKK 30.2 million.
• The Group's total assets as at 30 September 2022 amounted to DKK 3,299.9 million, which is DKK 702.1 million more than at the same time in 2021. The gain is mainly attributable to the acquisition of EA Værktøj, investments in the central warehouse, and increased inventories and receivables compared with the same period last year.
• The Group's equity as at 30 September 2022 was DKK 1,322.9 million, which is DKK 148.7 million more than at the same time in 2021. The solvency ratio was 40.1% against 45.2% at 30 September 2021. The decline in the solvency ratio is attributable to the acquisition of EA Værktøj and increased dividend payments.
• Cash flow from operating activities before changes in working capital for the third quarter of 2022 totalled DKK
• 1. million against DKK 102.3 million for the third quarter of 2021. Cash flow from operating activities before changes in working capital for the first three quarters of 2022 totalled DKK 351.3 million against DKK 309.7 million for the same period last year. Cash flow from operating activities after changes in working capital totalled DKK -
  1. million for the third quarter of 2022 and DKK -48.8 million for the first three quarters of 2022, which is DKK
  1. million more and DKK 23.3 million less for the same periods last year. The development is driven by changes in working capital due to increased revenue and timing differences in supplier payments. Investments for the third quarter of 2022 totalled DKK 21.0 million and DKK 268.6 million for the first nine months of 2022, compared with DKK 66.4 million and DKK 183.6 million in 2021.
• The Group's financial leverage, measured as the ratio between the net interest-bearing debt and the EBITDA of the last 12 months, was 1.6 as at 30 September 2022, against 1.2 at the same time last year and 0.5 as at 31 December 2021.The financial leverage is expected to decrease in the remainder of 2022.

Other highlights for the third quarter of 2022:

• The warehouse expansions at Albertslund and Horsens have been completed and are put into operation. The expansions mean that AO is ready for future revenue growth.
• Activity in the third quarter was high despite social indicators that usually reflect a decline in purchasing power and demand. In the traditionally small third quarter, the Brødrene A & Johansen Group set a new record for both reported and organic revenue.
• The integration of EA Værktøj continued during the third quarter, and a systemic integration is expected in the fourth quarter of 2022.
• On 30 September 2022, Brødrene A & O Johansen A/S won these two digital awards: 'European User Experience of the Year' and 'Best Mobile Experience of the Year'.

Company Announcement No. 13/2022

3/17

Brødrene A & O Johansen A/S

Interim financial report for Q1-3 2022

Expectations for the year

Third quarter revenue and earnings were at the higher end of expectations announced in the most recent earnings outlook for the year. Sales developed better than expected during the third quarter of the year, and therefore sales and earnings forecast for the year is adjusted upwards.

Revenue

Revenue for 2022 is expected to be in the region of DKK 5,300-5,400 million. Previous expectations were in the region of DKK 5,200-5,300 million. Revenue for 2021 was DKK 4,800.5 million.

EBITDA

EBITDA for 2022 is expected to be in the range of DKK 480-495 million, corresponding to an EBITDA margin of 8.9%-9.3%. Previous EBITDA expectations were in the range of DKK 455-485. EBITDA for 2021 was DKK 417.2 million.

EBT

EBT is expected to be in the region of DKK 365-380 million, corresponding to an EBT margin of 6.8%-7.2%. Previous EBT expectations were in the region of DKK 345-375 million. EBT for 2021 was DKK 326.1 million.

High cost inflation and rising interest rates are indicators of a future reduction in purchasing power and demand, but a high level of activity is expected to continue into the fourth quarter of 2022, which is the basis for the above- mentioned upward adjustment.

	Albertslund, 28 October 2022
Niels A. Johansen	Per Toelstang
CEO	CFO

Company Announcement No. 13/2022

4/17

Brødrene A & O Johansen A/S

Interim financial report for Q1-3 2022

Financial and operating data for the AO Group

(DKKm)

Key figures

Q1-3	Q1-3	Q3	Q3	Full Year
2022	2021	2022	2021	2021

Consolidated revenue	3,898.8	3,533.8	1,328.6	1,114.5	4,800.5
Gross margin	930.5	815.2	311.9	253.4	1,119.3
Earnings before interest, taxes, depreciation
and amortisation (EBITDA)	352.4	308.8	122.1	100.2	417.2
Profit or loss before financial income and expenses (EBIT)	271.1	233.8	93.9	75.1	316.7
Financial income and expenses, net	(2.7)	4.5	(2.2)	2.4	9.4
Profit or loss before tax (EBT)	268.5	238.3	91.6	77.5	326.1
Tax on profit or loss for the period	(58.8)	(50.9)	(20.1)	(16.7)	(72.3)
Net profit or loss for the period	209.7	187.4	71.6	60.8	253.8
Non-current assets	1,706.4	1,459.9	1,706.4	1,459.9	1,472.7
Current assets	1,593.5	1,137.9	1,593.5	1,137.9	1,235.9
Total assets	3,299.9	2,597.9	3,299.9	2,597.9	2,708.5
Share capital	28.0	28.0	28.0	28.0	28.0
Equity	1,322.9	1,174.2	1,322.9	1,174.2	1,239.9
Non-current liabilities	558.1	300.1	558.1	300.1	295.9
Current liabilities	1,418.9	1,123.6	1,418.9	1,123.6	1,172.7
Cash flow from operating activities	(48.8)	(25.4)	(12.4)	(158.2)	308.1
Cash flow from investing activities	(268.6)	(183.6)	(21.0)	(66.4)	(212.7)
Of which investments in property, plant and
equipment, net	(119.1)	(135.7)	(13.2)	(59.1)	(170.5)
Cash flow from financing activities	205.5	80.1	57.7	162.1	(91.6)
Cash flow for the period	(111.8)	(128.9)	24.4	(62.5)	3.7
Financial ratios*
Gross profit margin	23.9%	23.1%	23.5%	22.7%	23.3%
EBITDA margin	9.0%	8.7%	9.2%	9.0%	8.7%
Profit margin	7.0%	6.6%	7.1%	6.7%	6.6%
Return on capital employed**	9.0%	9.5%	3.4%	3.1%	12.4%
Return on equity**	16.4%	18.3%	5.9%	5.8%	22.4%
Net leverage	1.6	1.2	1.6	1.2	0.5
Solvency ratio	40.1%	45.2%	40.1%	45.2%	45.8%
Book value	47	42	47	42	44.3
Share price at the end of the period	68.0	102.0	68.0	102.0	136.0
Earnings per share (EPS Basic), DKK***/****	7.7	7.0	2.6	2.2	9.3
Diluted earnings per share (EPS-D), DKK***/****	7.7	7.0	2.6	2.2	9.3
Average number of employees	814	702	848	698	705
Average number of employees, incl. external temporary
workers	876	775	900	777	784

• Other financial ratios have been calculated in accordance with CFA Society Denmark's 'Recommendations and Financial Ratios'.
• Not translated into full-year figures.
• Comparative figures related to shares are adjusted to reflect share split in 2022.
• Basic EPS and diluted EPS have been calculated in accordance with IAS 33.

Company Announcement No. 13/2022

5/17