Elanders : Q3 2023

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QUARTERLY REPORT

JANUARY - SEPTEMBER 2023

Delivering sustainable solutions

FROM END

TO END AND

BEYOND

Elanders is a global logistics company with a broad range of services of integrated solutions in supply chain management.

The business is mainly run through two business areas, Supply Chain Solutions and Print & Packaging Solutions. The Group has over 7,000 employees and operates in some 20 countries on four continents. The most important markets are China, Singapore, the United Kingdom, Sweden, Germany, and the USA. Our major customers are active in the areas Automotive, Electronics, Fashion, Health Care and Industrial.

Contents

1. Bulletpoints
2. Comments by the CEO
3. Group

1. Parent company
2. Other information
3. Auditor's report
4. Consolidated financial statements

1. Quarterly data
2. Five year overview

1. Reconciliation of alternative performance measures

1. Parent company's financial statements
2. Financial definitions

This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail.

Further information can be found on Elanders' website www.elanders.com or requested via e-mail [e-mail]. Questions concerning this report can be addressed to:

Magnus Nilsson	Andréas Wikner
President and CEO	Chief Financial Officer
Phone: [phone]	Phone: [phone]

Elanders AB (publ) (Company ID 556008-1621)

Flöjelbergsgatan 1 C, 431 35 Mölndal, Sweden Phone: [phone]

This information is information that Elanders AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 13:00 CET on 17 October 2023.

NET SALES, MSEK

4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Q3 2020	Q3 2021	Q3 2022	Q3 2023

ADJUSTED EBITA, MSEK

250
200
150
100
50
0
Q3 2020	Q3 2021	Q3 2022	Q3 2023

OPERATING CASHFLOW, MSEK

600
500
400
300
200
100
0
Q3 2020	Q3 2021	Q3 2022	Q3 2023

2	Elanders | Q3 2023

Bulletpoints

January - September 2023

• Net sales increased to MSEK 10,292 (10,875), which corresponded to an organic net sales reduction of eight percent, excluding acquisitions and discontinued operations, and using unchanged exchange rates. The reduction is mainly due to normalized freight rates and linked to the Group's Air & Sea freight forwarding operations.
• Adjusted EBITA increased to MSEK 638 (635), which equaled an adjusted EBITA margin of 6.2 (5.8) percent.
• The period's reported result included one-off items of MSEK -81 (32). Most of these referred to errors discovered in one of the Group's companies in North America, which were corrected in the first quarter. The remaining part referred to a provision during the second quarter for additional consideration for an acquisition that has developed better than expected. Last year's one-off items mainly referred to a revaluation of shares in associated companies in connection with a merger.
• Adjusted net result amounted to MSEK 223 (315), corresponding to SEK 6.19 (8.52) per share. The reduction is primarily due to higher interest expenses.
• Reported net result amounted to MSEK 156 (347), corresponding to SEK 4.32 (9.42) per share.
• Operating cash flow increased to MSEK 1,558 (715).
• Cash conversion increased to 113 (54) percent.

Third quarter 2023

• Net sales were MSEK 3,253 (3,979), which corresponded to an organic net sales reduction of eleven percent, excluding acquisitions and discontinued operations, and using unchanged exchange rates. The reduction is to a large extent due to normalized freight rates and linked to the Group's Air & Sea freight forwarding operations.
• Adjusted EBITA amounted to MSEK 211 (224), which equaled an adjusted EBITA margin of 6.5 (5.6) percent.
• The period's reported result included one-off items of MSEK 0 (-8). Last year's one-off items referred to a provision for additional consideration for an acquisition that developed better than expected.
• Adjusted net result amounted to MSEK 66 (124), corresponding to SEK 1.83 (3.33) per share. The reduction is primarily due to higher interest expenses.
• Reported net result amounted to MSEK 66 (115), corresponding to SEK 1.83 (3.10) per share.
• Operating cash flow increased to MSEK 510 (229).
• Cash conversion increased to 106 (59) percent.

Financial overview

	January - September	Third quarter		Last 12	Full year
	2023	2022		2023	2022	months	2022
Net sales, MSEK	10,292	10,875		3,253	3,979	14,391	14,974
EBITDA, MSEK	1,399	1,403		500	466	1,937	1,940
EBITDA excl. IFRS 16, MSEK	635	762		238	246	941	1,068
EBITA adjusted, MSEK 1) 3)	638	635	211	224	969	966
EBITA-margin adjusted, % 1) 3)	6.2	5.8	6.5	5.6	6.7	6.5
EBITA, MSEK 1)	556	666	211	216	830	940
EBITA-margin, % 1)	5.4	6.1	6.5	5.4	5.8	6.3
Result after tax adjusted, MSEK 3)	223	315	66	124	406	499
Earnings per share adjusted, SEK 3)	6.19	8.52	1.83	3.33	11.30	13.63
Result after tax, MSEK	156	347	66	115	296	487
Earnings per share, SEK	4.32	9.42	1.83	3.10	8.19	13.29
Operating cash flow, MSEK	1,558	715	510	229	2,054	1,210
Cash conversion, %	112.7	54.2	105.7	58.6	107.0	64.6
Net debt, MSEK	7,022	7,227	7,022	7,227	7,022	7,276
Net debt excl. IFRS 16, MSEK	2,875	3,231	2,875	3,231	2,875	3,022
Net debt/EBITDA ratio, times 2)	3.8	3.9	3.5	3.9	3.6	3.7
Net debt/EBITDA ratio adjusted, times 2) 4)	3.0	3.3	3.0	3.2	2.7	2.8

1. EBITA refers to operating result plus amortization of assets identified in conjunction with acquisitions.
2. Return ratios have been annualized (the result has been recalculated to correspond to the result for a 12-month period).
3. One-offitems have been excluded in the adjusted measures.
4. Net debt/EBITDA ratio adjusted excludes IFRS 16 effects and one-off items.

Elanders | Q3 2023

3

Comments by the CEO

COMMENTS BY THE CEO

The third quarter continued to be challenging with weaker demand in nearly all customer segments. However, our strategy to discontinue business with high net sales and low or negative margins had a positive effect on the EBITA margin.

Another positive was that operating cash flow continued to improve significantly during the quarter.

Our strategic choices have primarily affected sales in business area Supply Chain Solutions, where we have mainly discontinued business in customer segments Automotive and Electronics. Apart from this, the reduction in net sales was largely attributable to the Group's Air & Sea freight forwarding operations, due to a normalization of freight rates. A certain amount of overcapacity in both the USA and Europe, which has arisen after the investments made before inflation began to soar, has entailed extra costs for operations.

Business area Print & Packaging Solutions presented an improvement in the third quarter compared to the same period last year, despite a challenging market with an increasing number of

bankruptcies in the industry. We have now implemented higher prices for most of our customers to compensate for the higher

energy and material costs. Access to material has also stabilized, which increases efficiency in production. We continue to see a strong demand for online print products which compensates for the declining demand for more traditional printed matter.

The higher interest rates and current net debt incur high interest expenses and negatively affect the net result on the bottom line. In order to counteract the effects of this, we continue to work actively

to improve our cash flow and reduce our working capital. This is apparent in, among other things, the Group's cash conversion, i.e. the Group's ability to generate cash flows from recognized results, which has significantly improved compared to the same period last year.

The Group's sustainability work and preparations for CSRD are progressing well. At the moment we are calculating carbon emissions in the Group's value chain, i.e. scope 3. We hope to have

a result in the autumn so that we can then make a commitment within the Science Based Targets initiative, aimed at getting our climate targets approved in the coming years.

Magnus Nilsson

President and Chief Executive Officer

4	Elanders | Q3 2023

Group

GROUP

NET SALES AND RESULT

January - September

Net sales contracted by MSEK 583 to MSEK 10,292 (10,875) compared to the same period last year. Cleared of exchange rate fluctuations, discontinued operations and acquisitions, net sales contracted organically by eight percent. The organic net sales reduction was mainly linked to business area Supply Chain Solutions due to lower freight rates in the Group's Air & Sea operations. Discontinued operations refer to the closure of some road transportation operations in Germany, which we announced in the fourth quarter 2022, and the Group's buy and sell business in components. Both these businesses have had very low or negative margins.

The market continues to be uncertain in general. Many Group customers are finding it difficult to maintain volumes or grow at the same pace as previously. Fluctuations continued in demand from Automotive in Europe due to problems in their supply chain.

Business area Print & Packaging Solutions presented a better result than for the same period last year. This is in part due to the implemented higher prices for most of our customers to compensate for higher energy and material costs and in part because access to material has stabilized, which increases efficiency in production.

Adjusted EBITA, i.e. the operating result adjusted for amortization of assets identified in conjunction with acquisitions and one-off items, increased by MSEK 3 to MSEK 638 (635). The improvement in the result was primarily due to changes in exchange rates that had a positive effect on adjusted EBITA by about MSEK 37. The adjusted EBITA margin increased from 5.8 to 6.2 percent. Including one-off items EBITA contracted from MSEK 666 to MSEK 556.

The period's one-off items amounted to net MSEK -81 (32). They were mainly a result of correcting historical errors in reporting from a subsidiary in business area Print & Packaging Solutions. These

errors were corrected in the first quarter. The remaining part refers to a provision during the second quarter for additional consideration for an acquisition that has developed better than expected. Last year's positive one-off items mainly referred to a revaluation of shares in associated companies in connection with a merger.

Current net debt in combination with high interest rates negatively affects the net result, as interest expenses have increased considerably compared to last year.

Third quarter

Net sales contracted by MSEK 726 to MSEK 3,253 (3,979) compared to the same period last year. Cleared of exchange rate fluctuations, discontinued operations and acquisitions, net sales contracted organically by eleven percent. The reduction is mainly due to a weaker market and lower freight rates in the Group's Air

• Sea operations. Discontinued operations refer to the closure of some road transportation operations in Germany, which we announced in the fourth quarter 2022, and the Group's buy and sell business in components.
  Adjusted EBITA, i.e. the operating result adjusted for amortiza- tion of assets identified in conjunction with acquisitions and one-off items, contracted by MSEK 13 to MSEK 211 (224). At the same time the adjusted EBITA margin increased from 5.6 to 6.5 percent.
  The period's reported result did not include any one-off items. Last year's one-off item of MSEK -8 referred to a provision for additional consideration for an acquisition that developed better than expected.
  Current net debt in combination with high interest rates nega- tively affects the net result, as interest expenses have increased considerably compared to the same period last year.

Net sales - organic growth

	January - September		Third quarter		Last 12	Full year
MSEK	2023	2022	2023	2022	months	2022
Comparison periods	10,875	8,369	3,979	2,865	14,240	11,733
Currency exchange rate fluctuations	782	646	235	296	1,144	1,008
Discontinued operations/businesses	-571	-		-526	-	-571	-
Acquisitions	30	1,333		-	462	213	1,516
Organic change	-824	527		-435	356	-635	717
Current period	10,292	10,875	3,253	3,979	14,391	14,974
Organic growth, %	-7.6	6.3		-10,9	12.4	-4.5	6.1

Elanders | Q3 2023

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