Svedbergs

As previously communicated, Svedbergs Group intends to resolve on a rights issue during the fourth quarter of 2023. To reflect the regulatory information that will be included in the prospectus intended to be published in connection with the rights issue, Svedbergs Group hereby publishes a trading update. This trading update covers the period 1 October – 30 November 2023, with comparatives for the corresponding period in 2022 where applicable.[1] Thebalux Holding was consolidated as of 23 November 2023, but is excluded in the figures below.

• Net sales amounted to MSEK 336 (329).
• EBITA amounted to MSEK 46 (46).
• The EBITA margin was 13.8 per cent (13.9).

Sales development 1 October – 30 November 2023

Net sales amounted to 336 MSEK (329) (excluding Thebalux Holding). Svedbergs Group delivers strong sales for the first two months of the fourth quarter of 2023, given the current market conditions. The business benefits from risk balancing through the company's exposure to several geographies. Above all, Roper Rhodes is developing strongly, while the company continues to face a cautious market in Sweden.

EBITA and EBITA margin 1 October – 30 November, 2023

EBITA amounted to MSEK 46 (46), which corresponds to an EBITA margin of 13.8 per cent (13.9) (excluding Thebalux Holding). Svedbergs Group maintains the group's margins compared to the previous year as a result of cost savings, efficiencies and price adjustments.

Historically, October – November has constituted a large share of the fourth quarter's net sales and EBITA, both for Svedbergs Group and Thebalux. For example, in the fourth quarter of 2022, the period 1 October – 30 November accounted for 75 percent of net sales and 85 percent of EBITA for Svedbergs Group.

Svedbergs Group intends to resolve on and publish the terms of the rights issue during the fourth quarter of 2023, and the rights issue is expected to be completed during the first quarter of 2024.

For further information, please contact:

Per-Arne Andersson, President and Group CEO
E-mail: per-arne.andersson@svedbergsgroup.com
Tel: +46 70 638 50 12

Ann-Sofie Davidsson, CFO
E-mail: ann-sofie.davidsson@svedbergsgroup.com
Tel: +46 720 741 062

This information is information that Svedbergs Group 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 persons set out above, on 14 December, 2023 at 08:00 CET.

About Svedbergs Group

Svedbergs Group is a long-term investor in Europe’s strongest independent companies that design, manufacture and market sustainable bathroom products and services. We are growing through organic growth and acquisitions that complement and strengthen our group through new products within bathroom furniture and shower solutions, geographic spread and new knowledge in marketing, innovation and sustainability. We create value by taking care to maintain the entrepreneurial drive and commitment of the companies, and by selectively finding synergies in areas such as purchasing. We call this cooperation without confusion.

Important information

The information in this press release does not constitute an offer to acquire, subscribe or otherwise trade in shares, subscription rights or other securities in the Company in any jurisdiction. Any invitation to the persons concerned to subscribe for shares in Svedbergs Group will only be made through the prospectus that Svedbergs Group estimates to publish during the fourth quarter of 2023.

This press release is not intended for, and may not be released, published or distributed, in whole or in part, directly or indirectly, in or into Australia, Canada, Hong Kong, Japan, New Zealand, the United States of America, including its territories and possessions, any state of the United States or the District of Columbia (the “United States”) or any other jurisdiction where such action is wholly or partially subject to legal restrictions or where such action would require additional prospectus, registration or other actions in addition to what follows from Swedish law. Nor may the information in this press release be forwarded, reproduced or disclosed in a manner that contravenes such restrictions or would entail such requirements. Failure to comply with this instruction may result in a violation of applicable securities legislation.

The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (“Securities Act”), or under the securities laws of any state or other jurisdiction in the United States and may not be offered, subscribed, used, pledged, sold, resold, allotted, delivered or transferred, directly or indirectly, in or into the United States absent exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with securities laws of the relevant state or other jurisdiction in the United States. All offers and sales of securities in connection with any rights offer by the Company will be made, subject to certain limited exceptions, outside of the United States and in reliance on, and in compliance with, Regulation S under the Securities Act. There will be no public offering in the United States.

Within the European Economic Area (the “EEA”), no public offering of securities is made in other countries than Sweden. In other member states of the EEA, such an offering of securities may only be made in accordance with an applicable exemption in the Prospectus Regulation (EU) 2017/1129. What is said about other member states in the EU than Sweden shall also apply to the United Kingdom, where the Prospectus Regulation (EU) 2017/1129 forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

In the United Kingdom, this press release is only directed at "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation (EU) 2017/1129, as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018, and who are (i) persons having professional experience in matters relating to investments who fall within the definition of "investment professionals" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order"); or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order; or (iii) other persons to whom this press release may otherwise lawfully be communicated (all such persons together being referred to as "Relevant Persons"). Persons who are not Relevant Persons should not take any action on the basis of this press release and should not act or rely on it.

This press release contains certain forward-looking information that reflects the Group’s present view of future events as well as financial and operational development. Words such as “intend”, “assess”, “expect”, “may”, “plan”, “believe”, “estimate” and other expressions entailing indications or predictions of future development or trends, not based on historical facts, constitute forward-looking information. Forward-looking information is inherently associated with both known and unknown risks and uncertainties as it depends on future events and circumstances. Forward-looking information is not a guarantee of future results or development and actual outcomes may differ materially from the statements set forth in the forward-looking information.

[1] See the section Key figure definitions in Svedbergs Group's interim report for the period January – September 2023 for definitions and further information on key figures not defined or specified in IFRS (alternative performance measures).