Q1 2023: Solid growth and strong cash flow

First quarter (January–March 2023)

• Net sales increased by 109.9 percent to SEK 589.3 million (280.7), of which organic growth amounted to 7.6 percent.
• EBITA increased to SEK 46.5 million (11.6) and the EBITA margin amounted to 7.9 percent (4.1).
• EBIT for the quarter amounted to SEK 34.1 million (6.3).
• Cash flow from operating activities amounted to SEK 52.8 million (-12.1).
• Helsingborgs Byggplåt AB and Stantraek A/S with annual sales for the financial year 2022 totaling SEK 340 million were acquired and taken over.
• Jan Johansson, an experienced board member from previously among others Svenska Handelsbanken and SSAB, was elected new board member and chairman of the board at the EGM on January 12, 2023.
• In February 2023, an additional SEK 250 million in bonds was issued within the framework of the company's bond loan 2021/2024. At the same time, Novedo's principal shareholders committed to a subordinated shareholder loan of SEK 100 million that matures after the maturity date of the bond loan.

Significant events after balance sheet day

• No significant events have occurred after the balance sheet day.

Per-Johan Dahlgren, President & CEO, comments on the first quarter 2023:

"Novedo has shown solid growth and strong cash flow in the first quarter of 2023. During the quarter, the Danish industrial company Stantraek A/S and Helsingborgs Byggplåt AB were taken over with combined sales of SEK 340 million. Pro forma net sales increased to approximately SEK 2.8 billion on an annual basis and pro forma EBITA to SEK 289.0 million.

The subsidiaries' well-balanced mix of offerings and solid and diversified customer base have shown good resilience in the uncertain economic situation that has characterized recent years, which is confirmed by organic growth of 7.6 percent for the first quarter of 2023. We see a good order intake among the subsidiaries, energy optimization, infrastructure investments and increased demand for European industrial companies that manufacture components and systems are underlying structural trends that are noticeable in the subsidiaries' order intake.

Our intention is to grow our three business segments to be equal in terms of sales. We see good growth opportunities in our existing geographic markets, but we also have an active acquisition agenda outside Sweden's borders. At the end of the first quarter of 2023, the Group consisted of approximately 1,300 employees in Denmark, Estonia and Sweden, operating in companies with a sound corporate culture, developed niche positions, proven business models and relevant market segments, which together gives us good conditions for long-term profitable growth also going forward.

For more information, please contact:
Per-Johan Dahlgren   
President & CEO  
per-johan.dahlgren@novedo.se
Mobil: +46 (0)705 97 06 44

This information is information that Novedo Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CEST on May 12, 2023.

About Novedo
Novedo is an industrial group of prominent B2B companies, with a sound corporate culture and well-balanced mix of offerings as well as a stable and diversified customer base, in three segments – Industry, Infrastructure and Installation & Services. The company has an active acquisition strategy and the goal is to continue to grow with qualitative companies and through organic growth. Pro forma consolidated net sales amounted to approximately SEK 2,800 million with an EBITA of SEK 289 million as of March 31, 2023. For more information, www.novedo.se.