Polygon AB (publ) - Interim report 1 January - 30 September 2018

Well on track to meet our ambitious targets

THIRD QUARTER 2018

• Sales grew 25.3% to EUR 158.1 million. Adjusted organic growth remained strong at 11.9%, with Continental Europe reporting growth of 20.2%. Recent acquisitions, completed in late 2017 and early 2018, contributed EUR 17.6 million in sales, corresponding to growth of 13.9%. The stronger euro had a negative impact of 0.5%. Order intake in the quarter was up 17.2% on last year.
• Adjusted EBITA amounted to EUR 10.3 million (8.6), up 19.3%. Continental Europe and Nordics & UK posted improved earnings while North America reported decreased earnings year on year due to very strong comparable figures last year in the US. Nordics & UK’s improvement in earnings to EUR 1.6 million (0.8) was mainly due to recent acquisitions.
• EBITA amounted to EUR 9.7 million (8.2). Items affecting comparability were recognised in a net amount of EUR 0.5 million (0.4) during the quarter.
• In the beginning of the quarter, Polygon Norway acquired the remaining 80% of the shares in their franchise partners in Drammen and Kongsberg (sales of EUR 3.5 million).

JANUARY - SEPTEMBER 2018

• Sales growth for the period was 21.7% and amounted to EUR 453.4 million. Adjusted organic growth totalled 8.0% following a strong performance in the last two quarters and acquisitions contributed growth of 14.7%. Currency rates had a negative effect of 1.0%.
• Adjusted EBITA amounted to EUR 29.0 million (23.5), up 23.6%. Earnings in Continental Europe and Nordics & UK improved while North America was down on the preceding year, when earnings were boosted by the occurrence of hurricanes in the US. Earnings for Nordics & UK continued to improve due to recent acquisitions.
• EBITA amounted to EUR 26.5 million (22.1). Items affecting comparability were recognised in a net amount of EUR 2.5 million (1.3).
• Cash flow from operating activities totalled EUR 9.7 million, compared with EUR 18.4 million last year due to increased working capital as a result of high growth. The liquidity buffer amounted to EUR 60.3 million (Dec 2017: 60.9).
• During the first nine months of the year, Polygon completed four acquisitions with total yearly sales of EUR 36 million. After the closing date, Polygon UK signed a contract to acquire Neways Property Care Ltd with yearly sales of EUR 6 million and Polygon Sweden signed a contract to acquire Refix Skadesanering AB with yearly sales of EUR 3 million.
• Axel Gränitz was appointed as CEO of Polygon Group effective from 15 October 2018.

For more information, please visit www.polygongroup.com or contact Mats Norberg, Chief Financial Officer, mats.norberg@polygongroup.com, +46 70 331 65 71.

Polygon is a Global Expert and the European market leader in Property Damage Control. On 3 continents and in 13 countries, our more than 3.600 specialists prevent, control and mitigate the effects of water, fire and climate. Our innovative and tailor-made solutions combine people, knowledge and technology for a wide range of customer segments.