Svolder : Interim Report #2 20/21

Interim Report 2 2020/2021

It's pleasing to see many listed Swedish companies paying dividends again

The Managing Director's comments, page 2

Result for current reporting period

3 months: 1st December 2020-28th February 2021

• ▪ The company posted a result for the period of SEK 754 million (-110 m), corresponding to SEK 29.40 (-4.30) per share

• ▪ The net worth increased 18.5% to SEK 188.50 per share

• ▪ The listed price of the Class B share increased by 3.6% to SEK 184.00 per share

• ▪ The Carnegie Small Cap Return Index rose by 7.3%

  Major contributors to net worth + Positive: Troax, Elanders, New Wave Group - Negative: Serneke Group

  Major changes in the equities portfolio + Bought: Nolato, Serneke Group, Nordic Waterproofing - Sold: GARO, Platzer Fastigheter, Lime Technologies

Result for the interim period

6 months: 1st September 2020-28th February 2021

▪

The company posted a result for the period of SEK 1,195 million (255 m), corresponding to SEK 46.70 (9.90) per share

▪

The net worth increased by 32.7%, including reinvested dividend

▪

▪

Latest published figures

5 March 2021

The listed price of the Class B share increased by 32.4%,	Share price	Net worth
197.80	188
including reinvested dividend
The Carnegie Small Cap Return Index increased by 17.3%
SEK	SEK/share

Dear Shareholder,

We are halfway through Svolder's 2020/2021 financial year, our 28th year in business. The effects of the COV-ID-19 pandemic and other significant

see the same level of growth during the quarter, but that is perhaps not surprising at it began with a premium to net asset value of 12 per cent. The winners

global events like Brexit, a new Ameri-can president and administration, and highly expansive monetary and fiscal policy in most parts of the world, are still being felt. In these contexts, Svolder is but a minor player. We continue, how-

» Let us hope that the consequences of the pandemic are coming to an end in Sweden. »

after six months are GARO, Troax and Elanders, the latter two also topping the latest quarter along with New Wave. In the case of Troax and GARO, the shares have developed so positively and conse-quently the holdings have become such aever, to work tirelessly on our ambition to create long-term value for our shareholders who, it is pleasing to note, have grown in number.

large part of the portfolio, that it has been hard to achieve the ideal risk diversification in Svolder's investment policy. This has led to sales of shares, but even after this the hold-ings remain the largest in the portfolio in terms of value.

Excellent administration results

The past half-year has produced excellent results both for Svolder's share and its net worth. We are outperforming a strong stock exchange and small cap market by more than 15 percentage points. Growth in the net worth in particular saw a very strong second quarter. The share price did not

Even so, a quarter or a half-year are only limited peri-ods in the context of stock markets, so Svolder's long-term net worth trend is even more pleasing. The graph below shows that the Swedish stock market continues to generate more value than interest-bearing investments, that small and medium-sized company share prices exceed those of large companies, and that Svolder is even more successful. That said, we still approach the future with great humility.

Total return1) 10 years in % on 28th February 2021

700

700

Source: Morningstar, Svolder and Infront

-100

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

-100 2021

1) Total return is calculated using comparable methods to reinvestment indices and funds, i.e. assuming that the dividend paid is reinvested at the time of the dividend in underlying types of assets.

Svo	der Net worth	1 year 51	3 years 85	5 years 216 10 y	ears 518
Share price (	Class B) 50	101	256	629
Sto	ck market ind CSRX	ex 35	80	129	385
SIXRX	29	55	98	218

Strong stock markets with increasing risks

Managing listed equities is no simple matter, but I have confidence in the experienced organisation we have built up over the years. I deem this experience to be particularly valuable in a stock market environment increasingly char-acterised by sudden share price surges, short-termism, as-sets like chain letters, and unreasonable valuations.

In a world flooded by cheap money, risk appetite tends to be so great that it jeopardises respect for the value of money and savings. I am concerned to see so many compa-nies in Sweden and elsewhere being listed with such high valuations, despite having no established business model or record of financial sta-bility. One popular new craze in the US is the SPAC or Special Purpose Acquisition Company, which is listed for the sole pur-pose of raising money through an IPO to buy another company within a set time-frame. Similar schemes are now arriving in the Nordics. The attractivity and valu-ation of the cryptocurrency Bitcoin is an-other modern phenomenon. So too is the kind of herd behaviour whipped up on websites and social media, making share prices in loss-making companies rocket and rendering conventional valuation impossible - indeed, these phenomena are more like chain letters or casinos.

Some analyses show that 80 per cent of the companies listed in the US in 2020 did not produce a profit, the high-est figure since before the new millennium, a situation that preceded the burst of the dotcom bubble. Please don't get me wrong: there is nothing wrong with startups or new technology. But what I think does need to be questioned and properly assessed are the expectations built into share prices. The supply of capital from established marketplaces like national stock exchanges is too important to world economies for the marketplaces to be treated like gambling dens with extreme risks and uncertainties.

Attractive shares in a low-interest environment

Despite my concerns about potential stock market bubbles, there is also a good basis for the valuation of the average share. Interest rates are low, and companies' business mod-els are efficient, profitable and well-established. Add to this the rising economic activity, albeit from low levels, and the Asian markets which often act as drivers. Generally speak-ing, share dividends today generate a yield well above the level of interest rates. But interest rates, regardless of terms and currencies, are being kept artificially low by the central banks' key interest rates and massive bond purchases. This means that investors on the money and bond market getno compensation for risk and inflation, and this is steer-ing investments towards increasingly risky financial assets such as real estate, company bonds, venture capital funds and equities.

This therefore means, in my opinion, that the greatest risk for stock market equities today lies in a gradually in-creasingly high level of interest rates in the wider world. When American long-term interest rates have increased by one percentage point (100 basis points) in six months this may not sound so much, but the rate of increase is quite dramatic. If it turns out to herald a desire among investors to start pricing risk and inflation in a historically more nor-mal way, the risks are not primarily in the shares of classic industrial companies, but in companies where investors have to finance their development over the long term with in-creasingly expensive money.

Dividends are part of a healthy business climate

It is pleasing to see the boards of many Swedish listed companies propose re-suming dividend payments as we enter the AGM season. It clearly shows that companies have managed the effects of the pandemic in an impressive way, and is of course also perfectly natural from a shareholder and societal perspective. The aim of dividends is to compensate investors for the capital they tie up in a company. A dividend is only paid if the board deems it justifiable in the long term, and it is also worth noting that these are funds that have already been taxed. A dividend is not a handout for shareholders and does not mean salary deductions for employees, as is some-times argued in public debate. Without companies, their owners and employees, the necessary tax base for Sweden vanishes, and with it our ability to develop society both during and after the pandemic. I believe that this should definitely fall under the category of 'essential business'.

Let us hope that the consequences of the pandemic are coming to an end in Sweden and the rest of the world when Svolder issues its next interim report on 11th June. I hope that by then, global pharma companies, Swedish regions and authorities will have vaccinated so many of us citizens that we can start looking forward to a return to more nor-mal lives. Until then, Svolder will continue to work mostly digitally, and to stay in touch with its portfolio companies' representatives and other business contacts, remotely.

Yours faithfully

ulf hedlundh

Managing Director

the equities portfolio

28/2 2021

Market	% of the	% of the
Share price	value	% of	company's	company's
Share	Number	(SEK)1)	(SEK m)	net worth	capital 2)	votes2)
Troax	2,950,000	245.00	723	15.0	4.9	4.9
GARO	954,520	620.00	592	12.3	9.6	9.6
Nordic Waterproofing	3,437,539	152.00	523	10.8	14.3	14.3
Elanders	2,069,332	167.80	347	7.2	5.9	4.0
FM Mattsson Mora	1,926,844	172.00	331	6.9	13.9	6.0
New Wave Group	4,485,850	68.70	308	6.4	6.8	1.8
XANO Industri	1,730,500	154.50	267	5.5	6.1	1.9
Lime Technologies	431,366	446.50	193	4.0	3.3	3.3
Beijer Electronics Group	4,367,960	42.50	186	3.8	15.1	15.3
Nolato	234,100	754.50	177	3.7	0.9	0.5
Wästbygg Gruppen	1,696,928	101.00	171	3.6	5.3	4.5
Elos Medtech3)	1,245,892	112.50	140	2.9	15.4	21.9
Boule Diagnostics	2,414,194	54.00	130	2.7	12.4	12.4
Magnolia Bostad	2,095,000	59.80	125	2.6	5.5	5.5
ITAB Shop Concept (incl. subsc. rights)4)	5,836,601	20.70	121	2.5	5.7	1.9
Saab	500,000	223.40	112	2.3	0.4	0.3
Serneke Group	2,077,608	49.85	104	2.1	7.2	2.8
Other (2)	29	0.6
Equities portfolio	4,578	94.9
Net debt (-)/net receivable (+)	246	5.1
Total/net worth	4,825	100.0
188.50
All securities holdings come under level 1 of the value hierarchy.

SEK per Svolder share

• 1) In calculating the market value (fair value), the last price paid for the securities on Nasdaq Stockholm on the closing day has been used.

• 2) Based on outstanding shares in the portfolio company.

• 3) Of which 297,946 Class A shares.

• 4) Including 5,836,601 subscription rights (ITAB TR B) @ SEK 6.50, equating to SEK 38 million in total. Svolder has agreed via received subscription rights to subscribe to its portion of the new share issue, equating to SEK 43.8 million. In addition, Svolder has made an underwriting guarantee of up to SEK 31.0 million for unsubscribed shares at an issue price of SEK 7.50 SEK/share.

The following information, for example, can be obtained from the table. Svolder's largest holding is Troax, which has a market value of SEK 723 million, corresponding to 15.0 per cent of net worth. A one-per-cent change in Troax's share price would affect Svolder's net worth by SEK 7 million, which equates to SEK 0.30 per Svolder share.

Interim Report 2

Current reporting period:

1st December 2020 - 28th February 2021

Market commentary

Index performance (12 months)

The current reporting period of 1st December 2020-28th February 2021 was characterised by rising stock markets. The outcome of the American presidential election did not have any major consequences on the markets, and neither did the drama surrounding Brexit create any negative tur-bulence. The stock markets instead focused on positive re-search results on vaccines to stop the spread of COVID-19. Moreover, companies' year-end accounts mainly showed higher profit margins, better results than expected, and in Sweden a resumption of dividend payments. In addition, central banks and governments have continued to apply highly expansive monetary and fiscal policies. Over the three-month period, shares in small and medium-sized companies (CSRX) rose by 7.3 per cent, marginally out-performing the Swedish stock exchange (SIXRX) at 7.0 per cent and large corporations (OMXS30) at 5.2 per cent.

Source: Infront

mar 2020

aprmayjunjulaugsepoctnovdecjan 2021

febCSRXSIXRX

Share price trends

Global stock exchanges show similar positive develop-ment, with a rise of 6.9 per cent (USD) in total. Meanwhile the S&P Europe index rose by just over 4 per cent, and the US S&P 500 by just over 5 per cent. Exchange rate fluctua-tions were not large in scale. The US dollar did, however, continue to weaken. It fell 1.6 per cent against the Swedish krona and 0.6 per cent against the euro during the three-month period.

The closing price for Svolder's Class B share was SEK 184.00, corresponding to an increase during the current reporting period of 3.6 per cent. The Class B share's value on the closing day represented a discount of 2.4 per cent on net worth. The Class B share was traded on all Nasdaq Stockholm trading days during the period, with an average of approximately 41,000 shares traded each day of trading.

Government bond interest rates increased during the quarter, particularly for long-term US government bonds. European long-term interest rates also rose, while govern-ment bonds have mainly continued to trade at negative in-terest rates. Central banks are not only providing liquidity through cheap money for the banking system. They are also the biggest buyers of government bonds and bonds with lower credit ratings, such as company bonds. Inflation ten-dencies can now be discerned, while the financial risks have increased due to rising budget deficits and national debts. Investors are, however, still accepting negative real interest on what are normally deemed risk-free investments, such as American and German government bonds.

Svolder's Class A share is only traded through three auc-tions (known as Auction Only Market Segments) during the trading day: one on opening, one at about 13.30 and one when the market closes. The closing price for Svolder's Class A share was SEK 210.00, which means that the Class A share was val-ued at a premium of 11.4 per cent in relation to net worth.

Under the terms of Svolder's Articles of Association, Class A shareholders wishing to convert Class A shares into Class B shares may do so by application to Svolder's Board of Directors.

Total return1) %

Rolling

Industrial metals and other commodities showed a dramatic upward price trend, although this happened later than the rally on the stock market. During the current re-porting period, the oil price in particular saw a powerful increase of just over 40 per cent. The price of gold, however, fell by 12 per cent. When the risk appetite is high on capital and commodity markets, gold and dollars tend to perform more weakly than in uncertain times, relatively speaking.

Source: Svolder, Infront and Morningstar

SIX Return Index 7.0

1) Total return is calculated using comparable methods to reinvestment indices and funds, i.e. assuming that the dividend paid is reinvested at the time of the dividend in underlying types of assets.

3 months	6 months	12 months
1/12 2020-	1/9 2020-	1/3 2020-
Svolder	28/2 2021	28/2 2021	28/2 2021
Share price (Class B)	3.6	32.4	50.3
Net worth	18.5	32.7	50.5
Stock market index
17.3	34.9
17.1	28.5

change in net worth

Svolder's closing net worth was SEK 188.50 per share (SEK 4,825 million), which represents an increase during the cur-rent reporting period of 18.5 per cent (SEK 754 million). This figure is 11.2 percentage points better than that of the small cap index (CSRX), which increased by 7.3 per cent during the corresponding period. This can also be com-pared with the Swedish market as a whole (SIXRX), which increased by 7.0 per cent.

Change in net worth in SEK million per month (12 months)

600

300

0

-300

The Q4 report of perimeter protection company Troax showed slightly lower sales and results than expected. Or-ders remained very strong, however, with an increase of 22 per cent for the quarter adjusted for acquisitions and cur-rency translation. An important factor behind this develop-ment was demand for products for automated warehouses in North America and the UK, primarily products related to expansion of various players' e-commerce solutions. Demand for this kind of product is expected to increase also moving forward, although the rate was unusually high during Q4. A certain negative impact from COVID-19, in the form of restrictions in some countries, was discernible in the fourth quarter. Even so, Svolder's judgement is that for the year as a whole, Troax has handled the effects of the pandemic very well. The share price developed strongly, and Troax was by far the largest contributor to net worth during the current reporting period. Svolder has, primarily for reasons of scale, opted to reduce its holding somewhat, which required a disclosure notice as its holding fell beneath 5 per cent of the capital and votes.

-600

-900

mar 2020

aprmayjunjulaugsepoctnovdecjan 2021

feb

Excluding dividends of SEK 56.3 million (SEK 2.20/share) paid in November 2020.

Svolder's equities portfolio is not an index portfolio: in-vestment decisions are, instead, based on valuation of the individual shares. The portfolio's results in relation to com-parison indices may, therefore, differ substantially from one accounting period to another. Share evaluation is com-plemented by a certain strategic focus on individual sectors based on macroeconomic factors.

Net worth trend (3 months)

1st December 2020-28th February 2021

SEK mSEK/share

Logistics group Elanders' share performed strongly during the reporting period and was a major contributor to net worth. Following a challenging first six months, with goods supplies and logistics hit hard by the pandemic, Elanders showed impressive adaptability and recovery in the latter part of 2020. The year-end report showed good organic growth, as well as strong improvements in its oper-ating profit and margin. Elanders gained from a broad re-covery in all the group's segments, while earlier cost-cutting programmes made it possible to raise the group's profitabil-ity to new levels. Thanks to an excellent cash flow during the year, Elanders now has a vastly improved balance sheet. Net debt fell by around SEK 1 billion during 2020, which means lower interest costs and greater opportunities for supplementary acquisitions moving forward. Moreover, the board is proposing a resumption of dividend payments at a good level. At the beginning of 2021, the company pre-dicts continued stable development of its market, primarily driven by strong demand in Electronics and E-commerce, along with stable recovery in Automotive.

Brand group New Wave ended a turbulent 2020 with two strong quarters, which led to a marginal rise in earn-ings for the year as a whole. The Q4 earnings were the high-est ever for a single quarter, and the operating margin was a strong 15.1 per cent. Cash flow was also strong and the bal-ance sheet was boosted considerably. The board proposed at the AGM that no dividend should be paid. It did, how-ever, announce that there were good prospects for a divi-dend payment in the latter part of 2021. The stock market received the interim report positively, and the share was a major contributor to net worth during the current reporting period. The company is now well equipped to benefit from the growth that's expected as various restrictions are eased and events such as sports competitions are allowed again. The judgement is that the valuation remains attractive and growth opportunities are good.

Net worth, 28th February 2021 4,825 188.50

Biggest contributors to changes in net worth

(Based on net worth of SEK 4,071 million or SEK 159.00/share on 30th November 2020)

portion in an amount of SEK 10.1 million (SEK 53/share), subscription rights and new shares were acquired for SEK 30.8 million (SEK 55/share). Following the issue, Svolder's holding amounts to 7.2 per cent of Serneke's share capital. In addition to acquired shares, an underwriting guarantee was made in the region of SEK 10 million, which was ulti-mately not needed as the issue was fully subscribed. For this Svolder received commission of SEK 0.5 million, which is recognised under other operating income.

liquidity/borrowing

The equities portfolio was unpledged on the closing day. The net receivable, which includes liquid assets and the share trading's unliquidated transactions etc., was SEK 246 million on the closing day, corresponding to 5.1 per cent of the company's net worth. This is to be compared with a net receivable of SEK 179 million at the beginning of the cur-rent reporting period.

the equities portfolio

Change in value

754 29.40

Shares were acquired for a total of SEK 248 million (gross) during the current reporting period. Shares for a gross amount of SEK 323 million were sold during the corre-sponding period, and net purchases hence totalled SEK 75 million.

Svolder is taking part in the refinancing of ITAB Shop Con-cept (ITAB), which was presented at the beginning of De-cember and involves a preferential issue on the closing day. Here Svolder has agreed via received subscription rights to subscribe to its portion of the new share issue, equating to SEK 43.8 million. In addition, Svolder has made an under-writing guarantee of up to SEK 31.0 million for unsubscribed shares at an issue price of SEK 7.50 SEK/share. On the closing day, the ITAB share price was SEK 14.20. For the underwrit-ing guarantee, Svolder receives a commission of 4.5 per cent, which equates to approximately SEK 1.4 million, to be recog-nised under other operating income during Q3.

During the three-month period, Freja eID and Platzer Fastigheter were divested in their entirety. On the closing day, the equities portfolio thus comprised 19 holdings.

Major net purchases for the equities portfolio

(3 months) 1st December 2020-28th February 2021

1) The purchase price per share is arrived at on the basis of the aggregate purchase price for all shares of the same class acquired during the period.

Ahead of its year-end report, ITAB announced that its 2020 results would be better than it had previously forecast. The refinancing will mean that all Class A shares will be-come Class B shares, and the addition of a new, large Scan-dinavian owner. The refinancing bolsters ITAB's financial position considerably. It secures the group's potential to de-velop its leading European business in store interiors, where the largest customer group includes supermarket chains such as Lidl, ICA and Coop.

Svolder participated in Serneke Group's (Serneke) new share issue in December. It was part of a total refinancing and restructuring of Serneke's project operation concen-trated around the Karlatornet skyscraper in Gothenburg. The refinancing creates opportunities for successful de-velopment in this highly expansive area of southern His-ingen island. It also lays a firmer foundation for the exist-ing construction business to carry on growing organically and with profitability. As well as subscribing to Svolder's

Polymer group Nolato was the largest purchase during the current reporting period. Nolato's Q4 report was somewhat weaker than expected, primarily due to a slight decline in the Medical business area. The American company GW Plastics, acquired during 2020, developed more weakly at the end of the year, as operations were postponed following the heavy impact of COVID-19 on the healthcare sector. This means that demand for GW Plastics' surgery products has temporarily fallen. Demand is expected to return to normal once the pandemic's impact on healthcare eases. For its Integrated Solutions business area, Nolato forecast increased sales during the beginning of 2021. The share price has developed below the CSRX for a period, a situ-ation Svolder used to increase its holding. The valuation appears to be attractive on the basis of expected profit for a normal year.

Share	Number	SEK m	SEK/share1)
Nolato	163,784	129.0	787.70
Serneke Group	749,999	40.9	54.50
Nordic Waterproofing	268,342	39.8	147.20

Major net sales from the equities portfolio (3 months)

Share	Number	SEK m	SEK/share1)
GARO	275,480	164.8	598.30
Platzer Fastigheter	500,000	51.1	102.30
Lime Technologies	118,634	44.7	376.50

1) The sales proceeds per share are arrived at on the basis of the aggregate market value for all shares of the same class sold during the period.

Electrical product company GARO saw dramatic share price development during much of 2020 and early 2021. As outlined in previous interim reports, the higher interest in companies with a sustainability, or ESG, profile is deemed to be a main driver for the rising share price. Apart from good, stable interim reports during the year, there are no specific news or events to explain the strong development in share price. The fastest-growing product area in GARO is E-mobility, which can deliver a complete range of products and services in infrastructure for charging the dramatically expanding fleet of electric vehicles. Other recently launched products also have properties with a clear focus on sustain-ability. The company's valuation has certainly increased along with its share price, but the company's product offer-ing and market position are deemed to be very interesting for the future. Svolder has used the rise in share price to reduce its holding, partly based on its size in the equities portfolio.

the parent company

The results for the Group and the Parent Company cor-respond in full. The Parent Company balance sheet is the same as for the Group with the exception of the Parent Com-pany's holdings in subsidiaries, worth SEK 0.1 million, and a current liability of SEK 0.1 million.

risks and uncertainty factors

The identified risks and uncertainties for the Group and the Parent Company are presented on page 69 and in note 17 on page 82 of the 2019/2020 Annual Report. The market risk (the equities portfolio's price risk) is adjudged to be the most significant of the risks listed. No significant changes are deemed to have occurred subsequently.

events after the reporting period

The net worth on 5th March was SEK 188 per share and the listed price was SEK 197.80.

Financial calendar

The reports for the period 1st September 2020- 31st May 2021 (9 months) and for the now current report-ing period 1st March-31st May 2021 will be published on 11th June 2021.

The Board and the Managing Director warrant that the half-year report provides a true and fair overview of the business, financial position and results of the Parent Company and the Group and describes the significant risks and uncertainties with which the Parent Company and the companies forming the Group are faced.

stockholm, 11th March 2021

fredrik carlsson	eva cederbalk	viveka ekberg	Johan Lundberg
Chairperson	Board member	Board member	Board member

Anna-Maria	Claes-Göran
Lundström Törnblom	Lyrhem	ulf hedlundh
Board member	Board member	Managing Director

For additional information, please contact:

Ulf Hedlundh, Managing Director+46 (0)8-440 37 73

Pontus Ejderhamn, CFO [phone]

This Interim Report has not been subject to examination by the company's auditors.

consolidated statement of comprehensive income

(SEK m)

Management operations

Dividend income Management costs Earnings from securities Other operating income

Operating profit

Profit on financial investments

Financial income

Financial expenses

Profit after financial items

Tax

Profit for the period

Other comprehensive income

Comprehensive income for the period

Rolling 3 months 3 months 6 months 6 months 12 months 1/12 2020- 1/12 2019- 1/9 2020- 1/9 2019- 1/3 2020-

28/2 2021 29/2 2020 28/2 2021 29/2 2020 28/2 2021

- -8.6 762.0

- -5.1

11.4 -14.3

• -105.0 1,196.8

12 months 1/9 2019- 31/8 2020

3.9 -11.7

16.4 8.9

-22.7 -20.1

262.4 1,635.9 701.5

0.5 753.9

- -110.1

0.5 1,194.4

- 254.6

0.5

-

1,630.1 690.3

- 0.0 753.9

- 0.0 -110.1

0.2

- -0.1 254.5

0.3 0.0

0.0

-0.1 -0.2

1,194.6

1,630.2 690.1

-

-

-

-

-

-

753.9

-110.1

1,194.6

254.5

1,630.2 690.1

753.9

-110.1

1,194.6

254.5

1,630.2 690.1

Earnings per share, SEK

consolidated cash flow statement

(SEK m)

Cash flow from operating activities before changes in working capital

Changes in working capital

Increase (+)/decrease (-) in current liabilities Cash flow from operating activities

Investing activities

Purchase of securities Sale of securities

Investment in machinery and equipment

Cash flow from investing activities

Financing activities

Dividend paid

Cash flow from financing activities

29.40

-4.30

46.70

9.90

63.70 27.00

3 months 1/12 2020- 28/2 2021

3 months 1/12 2019- 29/2 2020

6 months 1/9 2020- 28/2 2021

6 months 1/9 2019- 29/2 2020

Rolling 12 months 1/3 2020- 28/2 2021

12 months 1/9 2019- 31/8 2020

-6.3

-10.7

-0.2

-12.0

-3.8 -15.7

-6.4

-0.1

-0.2 -10.9

0.0 -0.2

0.2 -11.8

0.0 0.2 -3.9 -15.4

-247.8 322.9

-149.9 184.7

-420.0 480.8

-293.7 327.7

-549.4 -423.1 672.1 519.0

- 75.1

-

- 60.8

- 34.0

-

-

34.8

122.7 95.9

- 0.0

- 0.0

-56.3 -56.3

-55.0 -55.0

-56.3 -55.0

-56.3 -55.0

Increase (+)/decrease (-) in liquid assets Liquid assets at beginning of period

Liquid assets at end of period

Change in net worth, SEK

consolidated key ratios per share

3 months 1/12 2020- 28/2 2021

68.7 181.3

23.9 163.5

4.3 245.6

-32.8 220.2

62.5 25.4

187.4 220.2

249.9

187.4

249.9

187.4

249.9 245.6

3 months 1/12 2019- 29/2 2020

6 months 1/9 2020- 28/2 2021

6 months 1/9 2019- 29/2 2020

Rolling 12 months 1/3 2020- 28/2 2021

12 months 1/9 2019- 31/8 2020

29.40

-4.30

44.50 2.20 46.70 25.6

7.80 2.15 9.90 25.6

61.50 24.80

Dividend paid during the period, SEK Earnings per share, SEK

Number of shares, million

-

-

2.20 2.15

29.40

-4.30

63.70 27.00

25.6

25.6

25.6 25.6

Definitions as in the Annual Report for 2019/2020. Amounts per share have been rounded off to the nearest SEK 0.1 throughout the Interim Report, except for share prices and dividends. The company has no ongoing programmes of financial instruments that entail any dilution in the number of shares. The number of outstanding shares equals 25,600,000.

consolidated balance sheet

Assets

(SEK m) Non-current assets

28/2 2021

30/11 2020

31/8 2020

29/2 2020

30/11 2019

31/8 2019

Property, plant and equipment Equipment

0.1

0.1

0.1

0.1

0.2

0.2

Financial assets

Securities holdings

4,578.5

3,891.5

3,452.1

3,080.6

3,228.6 2,876.8

Current assets

Current receivables Cash and bank balances

2.7 249.9

2.9 181.3

2.3 245.6

3.1 187.4

4.4 20.5

163.5 220.2

Total assets

4,831.2

4,075.7

3,700.2

3,271.3

3,396.6

3,117.7

Shareholders' equity and liabilities

Total liabilities and shareholders' equity

4,831.2

4,075.7

3,700.2

3,271.3

3,396.6

3,117.7

changes in shareholders' equity

3 months 1/12 2020- 28/2 2021 4,070.6

3 months 1/12 2019- 29/2 2020 3,360.7

6 months 1/9 2020- 28/2 2021

6 months 1/9 2019- 29/2 2020

12 months 1/9 2019- 31/8 2020

consolidated key ratios per share

28/2 2021

30/11 2020

31/8 2020

29/2 2020

30/11 2019

31/8 2019

Net worth per share, SEK Share price (Class B), SEK

188.50

159.00

144.00

127.00

131.30 119.20

184.00

177.60

140.80

124.00

119.40 109.60

Net worth, premium (+)/discount (-), % Liquidity (+)/Borrowing (-), % Equity/assets ratio, % Number of shares, million

-2

12

-2

-2

-9 -8

5

5

6

5

4 6

100

100

100

100

100 100

25.6

25.6

25.6

25.6

25.6 25.6

Definitions as in the Annual Report for 2019/2020. Amounts per share have been rounded off to the nearest SEK 0.1 throughout the Interim Report, except for share prices and dividends. The company has no ongoing programmes of financial instruments that entail any dilution in the number of shares. The number of outstanding shares equals 25,600,000.

accounting policies

This Interim Report has been prepared in accordance with IAS 34, Interim Reporting.

The consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS)

adopted by the EU and in accordance with Sweden's Annual Accounts Act. The Parent Company accounts follow Sweden's Annual Accounts Act and Swedish Financial Reporting Board recommendation RFR 2. Otherwise the same accounting principles and bases for assessment have been used as in the most recent Annual Report.

IFRS 16, which concerns accounting for leases by lessors and lessees alike, has not prompted any changes in the Group's accounting in terms of amounts as these amounts are not material.

10

VISIT SVOLDER.SE

Prioritaire A

POSTAGE

PAID

Svolder is an investment company that invests primarily in the shares of listed small and medium-sized Swedish companies. The company's shares are listed on Nasdaq Stockholm.

Svolder's net worth is published weekly and appears on the company's website,www.svolder.secover photo: this three-span stone arch bridge crosses the River Myllyjoki in the middle of Idivuoma, Lapland, close to the Finnish border.

The bridge is made of rough-hewn natural stone and was built in 1909-1912.

(Photo: Tomas Utsi, 2009)

svolder ab (publ) Corporate ID no. 556469-2019

Birger Jarlsgatan 13, Box 70431, SE-107 25 Stockholm, Sweden. Tel [phone]; fax [phone]www.svolder.se