Kvartalsrapport Q1 2023

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===== SIDA 1 =====

Interim Report  Q1 
JANUARY – MARCH 2023  
"We continue to see strong interest in balcony renovations. We are prepared to continue growing both organi-
cally and through acquisitions that strengthen our offering and market position."  - Camilla Ekdahl, President and 
CEO 
 
Good net sales growth and stable profitability 
First quarter: January - March 
• Net sales increased by 13 percent to 326 MSEK (288)  
• Order intake amounted to 245 MSEK (292)  
• Order backlog amounted to 1,241 MSEK (1,567) 
• Adjusted operating profit (EBITA) amounted to 28 MSEK (27) 
• Operating profit (EBITA) amounted to 23 MSEK (27)  
• Operating profit (EBIT) amounted to 22 MSEK (26)  
• Net profit after tax amounted to 14 MSEK (19) 
• Earnings per share amounted to 0.68 SEK (0.89) 
• Operating cash flow amounted to -11 MSEK (-14) 
 
Events during the quarter and since the end of the quarter 
• On March 2, all shares in the turnkey company NMT Montageteknik i Norden AB was acquired. The company is consol-
idated in the group from March 1. 
• Further cost-savings has been implemented during March-April, which is estimated to provide 15 MSEK in annual sav-
ings and entailed items affecting comparability in the first quarter of 5 MSEK. 
 
 
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2023 2022 2022/23 2022
Net sales 325,7 288,4 1 370,9 1 333,6
Order intake 245,2 291,8 1 062,0 1 108,6
Order backlog 1 240,7 1 567,3 1 240,7 1 274,7
Adjusted Operating profif (EBITA) 28,4 26,8 108,8 107,2
Adjusted Operating margin (EBITA), % 8,7 9,3 7,9 8,0
Operating profit (EBITA) 23,2 26,6 101,7 105,1
Operating profit margin (EBITA), % 7,1 9,2 7,4 7,9
Operating profit (EBIT) 21,6 25,9 98,2 102,5
Operating profit margin (EBIT), % 6,6 9,0 7,2 7,7
Net profit for the period 13,7 19,2 70,7 76,2
Operating cash flow -10,8 -13,7 203,3 200,3
Earnings per  share, SEK before dilution 0,68 0,89 3,57 3,78
Earnings per share, SEK, after dilution 0,68 0,86 3,56 3,75

===== SIDA 2 =====

2  |  Balco Group Interim Report  1 January - 31 March 2023 
Good net sales growth and  
stable profitability 
The outcome of the quarter was largely as expected 
with strong sales growth, pending  order intake and 
continued pressure on the profit margin. The turnover 
is the best ever for a first quarter and increased by 13 
percent to 326 MSEK  and the adjusted profit margin 
was 8.7 percent. In order to improve profitability and 
adapt to the new market conditions, we have imple-
mented further cost-savings.  
The uncertainty of when interest rate increases will 
end affects order intake 
We notice that our customers are to some extent get-
ting used to a higher interest rate level, but uncertainty 
about when Riksbanken will be ready with its interest 
rate increases continues to keep customers waiting in 
our main market, Sweden. However, we see that more 
meetings are planned during the second quarter, but 
several decisions are still being moved forward in time. 
This has affected our order intake during the first quar-
ter and will have an impact in the coming quarters as 
well. We estimate that this uncertainty will persist for 
another couple of quarters.  
Cost savings to strengthen profitability 
Due to pending order intake even during the first 
quarter, lower profitability and tougher market condi-
tions, we have implemented further cost-savings 
which involves staff reductions in Sweden and Nor-
way. The focus has been primarily to reduce the num-
ber of indirect resources and managers, not the oper-
ational resources. The organization is still well 
equipped to handle an increased order intake. The 
cost-savings are estimated to 15 MSEK annually and 
has resulted in costs affecting comparability of 5 
MSEK in the quarter. 
Stable underlying profitability  
We see a trend that a larger share of our turnover 
comes from companies and markets wit h a different 
cost structure than Balco's traditional one in Sweden 
and Norway. This means that the gross margin will 
weaken, but we see that sales and administration costs 
will decrease as a percentage. As the group continues 
to grow through acquisitions and these lead to certain 
amortization on acquired assets, adjusted EBITA  and 
adjusted EBITA-margin gives a better measure of the 
group's underlying profitability.  
The need for renovation of balconies remains 
The need for renovation of balconies remains and 
around 90 percent of Balco Group's turnover comes 
from the renovation segment. We have many cus-
tomer meetings and the interest in our products and 
offers is still great and the customers are getting used 
to a higher interest rate. When there is a stabilization 
of inflation and the interest rate increases are over, we 
are confident that order intake will pick up again.  
Glazed balconies provide energy savings 
All glazing of a balcony results in energy savings. Sim-
pler glazing provides 5 to 10 percent energy savings, 
while Balco's patented glazing provides a documented 
energy saving of 15 to 30 percent. In connection with 
glazing projects, Balco offers its customers a review of 
its energy declaration and offers suggestions for fur-
ther energy -saving measures. We call this concept 
Green Transformation. However, we have noticed that 
with increased interest rates, it takes longer time for 
decisions on large projects even if they are sustainable 
as they require larger investments. Therefore, we as-
sess that the proportion of Green Transforming pro-
jects will decrease until the interest rate stabilizes. 
Acquisition of NMT Montageteknik i Norden AB 
Balco continues its strategy to grow both organically 
and via acquisitions. On March 2, NMT Montageteknik 
i Norden AB was acquired, with turnover in the last fi-
nancial year of 49 MSEK . NMT is a turnkey company 
that has been one of Balco's strongest competitors in 
northern Sweden. NMT has its own assembly and pro-
ject organization and will be integrated with Balco AB. 
NMT, together with Balco's resources in northern Swe-
den, will create a unit in northern Sweden  as we see 
that proximity to customers is important. 
Balco's strong financial position means that we can 
continue to grow through selective acquisitions that 
strengthen our market position in existing markets. 
 
Camilla Ekdahl  
President and CEO

===== SIDA 3 =====

3  |  Balco Group Interim Report  1 January - 31 March 2023 
The group’s development 
 
The first quarter: January – March 
Net sales increased by 13 percent to 326 MSEK (288). Acquired growth was 3 percent, cur-
rency effect was 1 percent and organic growth was 9 percent. All of the organic growth 
comes from price increases. Net sales for the renovation segment increased to 299 MSEK 
(246) and net sales for the New Build segment amounted to 26 MSEK (4). 
Order intake amounted to 245 MSEK (292). The Renovation segment accounted for 199 
MSEK (239) and the New Build segment accounted for 46 MSEK (52). 
The order backlog amounted to 1,241 MSEK (1,567). The order backlog for the Renovation 
segment amounted to 1,091 MSEK (1,378) and the order backlog for the New Build seg-
ment amounted to 150 MSEK (189).     
Gross profit amounted to 69 MSEK (74), entailing a gross margin of 21.2 percent (25.5). 
The gross result includes items affecting comparability of 4 MSEK linked to restructuring 
costs. The adjusted gross profit was 73 MSEK (74) and the adjusted gross margin 22.4 
percent (25.5). The gross margin has decreased due to an increased share of sales in sub-
sidiaries with a lower gross margin. In addition the gross margin is negatively affected low 
occupancy within production and project organization.  
Sales costs amounted to 29 MSEK (31) and administrative costs amounted to 19 MSEK (17). 
Items affecting comparability of 1 MSEK were taken in the quarter linked to restructuring 
of the organization and acquisition costs.  
Adjusted operating profit (EBITA) amounted to 28 MSEK (27), corresponding to an ad-
justed operating margin (EBITA) of 8.7 percent (9.2). Operating profit (EBITA) amounted to 
23 MSEK (27), corresponding to an operating margin (EBITA) of 7.1 percent (9.2). Operat-
ing profit (EBIT) amounted to 22 MSEK (26), corresponding to an operating margin (EBIT) 
of 6.6 percent (9.0). 
Net financial items amounted to -3 MSEK (-2), of which -0.4 MSEK (-0.4) refers to interest 
costs linked to right-to-use assets (leasing). The deterioration comes from increased mar-
ket interest rates. Profit after tax amounted to 14 MSEK (19), corresponding to earnings 
per share of 0.68 SEK (0.89). 
Operating cash flow amounted to -11 MSEK (-14).  
 
Net sales per customer category, MSEK 
 
 
Net sales per geographic market, MSEK 
 
 
 
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
2023 2022 2022/23 2022
Tenant-owner associations 230,8 206,5 977,3 952,9
Private landlords 14,3 17,7 60,1 63,5
Publicly owned companies 16,9 12,4 57,6 53,2
Construction companies 63,7 51,8 275,9 264,0
Total net sales 325,7 288,4 1 370,9 1 333,6
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
2023 2022 2022/23 2022
Sweden 207,7 177,5 865,8 835,6
Other Scandinavia 89,6 79,7 353,0 343,0
Other Europe 28,3 31,2 152,1 154,9
Total net sales 325,7 288,4 1 370,9 1 333,6
 
Order intake per segment, MSEK 
        
 
 
 
Order backlog, MSEK 
    
 
 
Net sales, MSEK 
 
 
 
Adjusted operating profit, MSEK 
 
 
 100
 200
 300
 400
 500
 600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2022 2023
New Build Renovation
 250
 500
 750
1 000
1 250
1 500
1 750
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2022 2023
0
300
600
900
1 200
1 500
 100
 200
 300
 400
 500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2022 2023
0
50
100
150
200
 25
 50
 75
 100
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2022 2023
Net sales 
Q1 2023 
326 MSEK 
Adjusted operating profit 
 R12 
Net sales 
 R12

===== SIDA 4 =====

4  |  Balco Group Interim Report  1 January - 31 March 2023 
Development per segment 
Renovation 
First quarter 
Net sales increased by 21 percent to 299 MSEK (246). The segment accounted for 92 percent of Balco’s total net sales.  
Order intake amounted to 199 MSEK (239), which corresponds to 81 percent of the total order intake.  
Adjusted operating profit amounted to 26 MSEK (24), corresponding to an adjusted operating margin of 8.6 percent (9.8).  
The order backlog amounted to 1,091 MSEK (1,378) which corresponds to 88 percent of the total order backlog. 
 
 
New build 
First quarter 
Net sales amounted to 26 MSEK (42). The segment accounted for 8 percent of Balco’s total net sales.  
Order intake amounted to 46 MSEK (52) which corresponds to 19 percent of the total order intake.  
Adjusted operating profit amounted to 1 MSEK (2), corresponding to an adjusted operating margin of 5.2 percent (5.7).  
The order backlog amounted to 150 MSEK (189), which corresponds to 12 percent of the total order backlog. 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
Renovation, MSEK 2023 2022 2022/23 2022
Net sales 299,2 246,4 1 216,3 1 163,5
Adjusted Operating profit (EBITA) 25,7 24,2 99,3 97,9
Adhusted Operating margin (EBITA) 8,6 9,8 8,2 8,4
Order intake 199,2 239,4 943,7 983,9
Order backlog 1 090,6 1 378,3 1 090,6 1 145,6
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
New Build, MSEK 2023 2022 2022/23 2022
Net sales 26,4 42,0 154,6 170,1
Adjusted Operating profit (EBITA) 1,4 2,5 9,4 10,5
Adhusted Operating margin (EBITA) 5,2 5,9 6,1 6,2
Order intake 46,0 52,4 118,3 124,7
Order backlog 150,1 189,0 150,1 129,1

===== SIDA 5 =====

5  |  Balco Group Interim Report  1 January - 31 March 2023 
Financial position and cash flow 
Liquidity and financial position  
Interest-bearing net debt including leasing debt at the end of quarter amounted to 187 
MSEK (190). Interest-bearing net debt including leasing debt in relation to adjusted 
EBITDA amounted to 1.2 times (1.2).  
Interest-bearing net debt excluding leasing debt amounted to 108 MSEK (101). Interest-
bearing net debt including leasing debt in relation to adjusted EBITDA amounted to 0.9 
times (0.6). During the quarter, the acquisitions of both Arutex AB and NMT Monta-
geteknik i Norden AB were completed. 
At the end of the quarter, the Group’s equity amounted to 746 MSEK (711).  
The Group’s equity ratio was 57 percent (56).  
 
Cash flow, investments and amortization/depreciation 
For the quarter, cash flow from operating activities amounted to -35 MSEK (-42).  
Cash flow from investing activities amounted to -44 MSEK (-3), of which -1 MSEK (-2) was 
replacement investments, -3 MSEK (-1) expansion investments and -40 MSEK (0) acquisi-
tion of shares in subsidiaries. 
Cash flow from financing activities amounted to 43 MSEK (-52) where the largest items 
refer to increased utilization of existing credit facility.  
Cash flow for the quarter amounted to -36 MSEK (-97).  
Depreciation for the quarter amounted to 12 MSEK (10), of which 6 MSEK (5) refers to de-
preciation linked to right-to-use assets (leasing) and 2 MSEK (1) refers to amortization of 
acquired intangible assets. 
The Parent Company 
The Parent Company has its registered office in Växjö and conducts operations directly as 
well as through Swedish and foreign subsidiaries. The Parent Company’s operations are 
focused primarily on strategic development, financial control, corporate governance is-
sues, board work and relations with banks. 
The operating result for the quarter amounted to 1 MSEK (1).  
31-mar 31-mar 31-dec
MSEK 2023 2022 2022
Non-current liabilities to credit institutions 123,8 121,8 72,6
Leasing liabilities non-current 60,1 69,0 63,3
Current liabilities to credit institutions 0,4 0,4 0,8
Leasing liabilities current 18,7 20,0 20,0
Cash and cash equivalents -16,4 -21,0 -51,9
Interest-bearing net debt incl leasing debt 186,6 190,1 104,8
Interest-bearing net debt excl leasing debt 107,8 101,1 21,6
Interest-bearing net debt incl. leasing/EBITDA (12 
months), times 1,2 x 1,2 x 0,7 x
Interest-bearing net debt excl. leasing/EBITDA (12 
months), times 0,9 x 0,6 x 0,2 x
Equity/assets ratio, % 56,8 56,0 56,3
External interest-bearing net debt  
relative to EBITDA   
   
 
 
 
 
    
Operating cash flow R12, MSEK 
   
 
 
 
 
 
 
 
 0,0
 0,5
 1,0
 1,5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2022 2023
 100
 200
 300
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2022 2023
Equity ratio 
57%

===== SIDA 6 =====

6  |  Balco Group Interim Report  1 January - 31 March 2023 
Operations and segment description 
Balco Group is a market-leading player in the balcony industry and offers a range of different services, from development and man-
ufacturing to sales and installation of self-made open and glazed balcony systems. Balco has a unique method, known as the Balco 
Method, for delivering glazed balconies and balcony solutions. The method means that existing balconies are removed and re-
placed with new, larger glazed balconies with a lifespan of over 90 years, which provides the market's most economical and sustain-
able solution.  
In order to offer complete and customized solutions in the balcony industry, Balco Group has several subsidiaries that work together 
to offer a comprehensive solution in areas such as manufacturing and delivery of balconies, masonry and tiling services, technical 
solutions and facade services such as renovation, window replacement and facade cleaning. Balco Group strives to meet customer 
needs and requirements by offering a combination of specialized services and expertise. Balco Group's offer contributes to in-
creased quality of life, safety and value for residents in apartment buildings and provides energy savings up to 30 percent. The 
group takes full responsibility for the project and guides the customer through the entire process from project planning to final in-
spection and service. 
Segment - Renovation  Segment – New Build 
 
 
 
Sjøsiden Boligpark  New Road Rainham 
The segment includes the replacement and extension of exist-
ing balconies as well as the installation of new balconies on 
multi-residential properties, mainly glazed balconies. The main 
driving force is the pent -up need for renovation and the age 
profile of the properties. The offer also includes facade renova-
tion in connection with balcony projects.
 
 The segment includes balconies in the construction of multi-
residential properties as well as balcony projects in the mari-
time market. Largest product areas are balcony glazing and 
open balconies. Balco expands selectively with a focus on prof-
itability and low risk. Demand is driven by the pace of new 
housing production.
 
Sales development per quarter, MSEK  Operating margin per quarter, % 
 
 
 
Sustainability 
Sustainability is a prerequisite for long-term profitability for the Balco Group. By focusing on sustainability, we can create a strong 
brand, increase customer trust and improve our competitiveness in the long term. We will continue to work to incorporate sustaina-
bility into all aspects of our business. 
 
Sustainability is a focus area in the construction industry and affects all links in the value chain. This particularly applies to the market 
for balconies where Balco Group operates. Property developers and property owners demand economically advantageous and cli-
mate-smart solutions with a long lifespan. Of the orders received in the last twelve months, 33 percent will provide 15 to 30 percent 
in energy savings and 9 percent will provide more than 30 percent in energy savings.   
100
200
300
400
2022
2023
2022
2023
2022
2023
2022
2023
Q1 Q2 Q3 Q4
New Build Renovation
5,0
10,0
15,0
2022
2023
2022
2023
2022
2023
2022
2023
Q1 Q2 Q3 Q4
New Build Renovation

===== SIDA 7 =====

7  |  Balco Group Interim Report  1 January - 31 March 2023 
Other information 
Employees 
At the end of March 2023 Balco had 521 (484) full-time employees. The increase comes from the three acquired companies Söderåsens Mur 
& Kakel AB, Arutex AB and NMT Montageteknik i Norden AB. 
Seasonal variations 
Balco’s sales and earnings are partially affected by seasonal variations and the fact that the annual general meetings of tenant-owner associ-
ations normally take place in the second and fourth quarter. In addition, the Group is positively affected by months with a large number of 
workdays and lack of absences, and somewhat negatively affected by weather factors, where winters with significant volumes of snow entail 
increased costs. The Group’s strongest quarters are normally the second quarter. 
Shares, share capital and shareholders 
At the end of March 2023, there were 21 909 348 shares in Balco, corresponding to a share capital of 131 461 248 SEK. There were 5,766 
shareholders. The five largest shareholders were The Family Hamrin, Skandrenting AB, Swedbank Robur fonder, Tredje AP-fonden and 
Lannebo Fonder. 
Related-party transactions 
Related parties comprise the Board of Directors, Group management and the CEO. This is due to ownership stakes in Balco and positions as 
senior executives. Related parties also include the Company’s largest shareholder, The Family Hamrin that is represented on the Board of 
Directors by Carl-Mikael Lindholm and Skandrenting that is represented on the Board of Directors by Johannes Nyberg. Related-party trans-
actions take place on commercial terms. For further information, see pages 112 and 133 in the 2022 Annual Report. 
Incentive program  
Balco Group AB has three long-term incentive programs aimed at the company's senior executives and additional key employees, a total of 
50 employees. The incentive programs comprise a total of no more than 820,000 warrants, which entitles to a maximum of new subscrip-
tions of the corresponding number of shares. Balco's total cost for the incentive programs during the term of the programs is expected to 
amount to approximately 6 MSEK. The programs involve a dilution corresponding to approximately 4 percent of the company's total num-
ber of shares. The senior executives in Balco have acquired 233,332 warrants amounting to a total value of 2,180,784 SEK. The purpose of 
the incentive programs is to encourage broad shareholding among Balco's employees, facilitate recruitment, retain competent employees 
and increase motivation to achieve or exceed the company's financial goals. For more information, see the Annual Report 2022 on pages 
58-59, 90 and 110-111.   
Risks and uncertainty factors   
Through its operations, the Group and the Parent Company is exposed to various types of risks. The risks can be divided into industry and 
market-related risks, business-related risks and financial risks. Industry and market-related risks include changes in demand because of a 
weaker economy or other macroeconomic changes, a changed price picture for raw materials that are central to Balco's production, and a 
change in competition or price pressure. Business-related risks include Balco's ability to develop and sell new innovative products and solu-
tions, that the Group can attract and retain qualified employees and that Balco's profitability depends on the results of the individual pro-
jects, i.e. the Group's ability to anticipate, calculate and deliver projects. The financial risks are summarized under financing risk, liquidity risk, 
credit risk and interest rate risk. Balco's risks and uncertainties are described on pages 70-77, 85, 120-121, 124 and 127 in the Annual Report 
for 2022.  
Outlook 
Balco Group is one of the few complete balcony suppliers on the market that provides customized and innovative balcony solutions on a 
turnkey basis. Balco Group is the market leader in Scandinavia and has a strong challenger position in other markets in which the Group 
operates. The market is fragmented and growing throughout northern Europe. The value of the balcony market in the countries where Balco 
Group is represented is estimated at just over 40 billion SEK and is expected to grow by approximately 5 percent annually over the next few 
years according to market research conducted in autumn 2020 by Arthur D. Little. 
Strong financial position means that the company is equipped for growth through further acquisitions. The timing of building permits affects 
turnover between quarters. The uncertainty surrounding when the central banks will be finished with their interest rate increases has contin-
ued to have a negative impact on our order intake. 
Events during the quarter and since the end of the quarter 
On March 2, all shares in the turnkey company NMT Montageteknik i Norden AB was acquired. The company is consolidated in the group 
from March 1. 
Further cost-savings has been implemented during March-April, which is estimated to provide 15 MSEK in annual savings and entailed items 
affecting comparability in the first quarter of 5 MSEK.

===== SIDA 8 =====

8  |  Balco Group Interim Report  1 January - 31 March 2023 
Financial targets 
Revenue growth  
Balco shall achieve growth of 10 percent per year.  
Profitability  
Earnings per share shall grow by 20 percent per year. 
Capital structure 
Interest-bearing net debt shall not exceed 2.5 times operating profit before depreciation and amortization (EBITDA), other than tem-
porarily. 
Dividend policy  
Balco shall distribute 30-50 percent of profit after tax, taking into consideration the needs for Balco’s long-term growth and prevailing 
market conditions.   
Sustainability  
More than 30 percent of the group’s net sales shall be within the EU-taxonomi.  
 
The interim report has not been subject to a review of ISRE 2410 by the company's auditors. 
 
This information comprises such information as Balco Group AB is obliged to publish in accordance with the EU Market Abuse Regulation.  
The information was provided by the contact person below for publication on April 24, 2023 at 13:00 CET. 
 
Växjö, April 24, 2023 
Camilla Ekdahl 
 President and CEO 
 
 
 
  
Web conference 
A webcast conference call will be held at 14:30 CE ST April 24, 2023, where CEO and President 
Camilla Ekdahl and CFO Michael Grindborn will present the report and answer questions.  
To follow the webcast presentation and send written questions, please use this link:   
https://www.finwire.tv/webcast/balcogroup/q1-2023/ 
 
To participate via teleconference and be able to ask questions, call in:  
 
SE: +46 8 5052 0017 
PIN: 894 1190 5538# 
For more information, please contact: 
Camilla Ekdahl, President and CEO, Tel: +46 70 606 30 32, camilla.ekdahl@balco.se 
Michael Grindborn, CFO and Head of IR, Tel: +46 70 670 18 48, michael.grindborn@balco.se 
Calendar 2023  
Annual General Meeting 2023 9 May 2023  
Interim report Jan-Jun 2023 14 July 2023 
Interim report Jan-Sep 2023 30 October 2023 
Year-end report 2023 5 February 2024

===== SIDA 9 =====

9  |  Balco Group Interim Report  1 January - 31 March 2023 
Consolidated statement of comprehensive income 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2023 2022 2022/23 2022
Net sales 325,7 288,4 1 370,9 1 333,6
Production and project costs -256,6 -214,7 -1 087,8 -1 046,0
Gross profit 69,1 73,7 283,0 287,6
Sales costs -29,1 -31,0 -124,5 -126,4
Administration costs -19,4 -16,7 -73,7 -71,0
Other operating income 1,2 - 13,4 12,3
Other operating expenses -0,1 - -0,1 -0,0
Operating costs -47,5 -47,8 -184,8 -185,1
Operating profit 21,6 25,9 98,2 102,5
Finance income 0,9 0,0 1,8 1,0
Finance costs -4,2 -1,5 -11,5 -8,8
Profit before tax 18,4 24,4 88,5 94,6
Income tax -4,7 -5,3 -17,8 -18,5
Net profit for the period 13,7 19,2 70,7 76,2
Other comprehensive income
Translation difference when translating foreign operations 1,2 0,3 7,9 6,9
Comprehensive income for the period 14,9 19,4 78,6 83,1
Of which attributable to:
Parent company's shareholders 15,0 19,4 78,3 82,8
Non-controlling interest -0,1 - 0,3 0,3
Comprehensive income for the period 14,9 19,4 78,6 83,1
Earnings per share, SEK, before dilution 0,68 0,89 3,57 3,78
Earnings per share, SEK, after dilution 0,68 0,86 3,56 3,75
Average number of shares before dilution, thousands 21 909 21 909 21 909 21 909
Average number of shares after dilution, thousands 21 909 22 490 21 961 22 106
Items that may later be reclassified to the income statement

===== SIDA 10 =====

10  |  Balco Group Interim Report  1 January - 31 March 2023 
Consolidated balance sheet in summary 
 
31-mar 31-mar 31-dec
MSEK 2023 2022 2022
ASSETS
Non-current assets
Intangible assets
Goodwill 485,3 448,1 457,8
Other intangible assets 144,3 109,4 135,3
Total intangible assets 629,6 557, 4 593,1
Tangible assets
Right-to-use assets 77,7 88,6 82,3
Property, plant and equipment 164,9 151,1 158,8
Total tangible assets 242,6 239,7 241,1
Financial assets - 0,2 -
Deferred tax assets 0,6 0,0 1,0
Total non-current assets 872,8 797,4 835,2
Current assets
Inventory 61,7 55,6 58,4
Accounts receivables 154,6 186,0 174,8
Contract assets 144,8 163,8 111,9
Current tax receivables 35,1 14,9 22,0
Other current receivables 25,1 32,6 42,4
Cash and cash equivalents 16,4 21,0 51,9
Total current assets 437,7 473,8 461,4
TOTAL ASSETS 1 310,5 1 271,2 1 296,6
EQUITY AND LIABILITIES
Equity
Share capital 131,5 131,5 131,5
Other capital contributions 406,3 405,1 406,3
Reserves 9,4 1,6 8,3
Retained earnings, incl. profit for year 197,5 173,3 183,7
Equity attributable to Parent Company’s shareholders 744,8 711,4 729,8
Non-controlling interest 1,1 - 1,2
TOTAL EQUITY 745,9 711,4 731,0
LIABILITIES
Non-current liabilities
Liabilities to credit institutions 123,8 121,8 72,6
Leasing liabilities 60,1 69,0 63,3
Other non-current liabilities 18,7 29,1 18,4
Deferred tax liabilities 43,4 32,8 40,0
Total non-current liabilities 246,1 252,7 194,3
Current liabilities
Liabilities to credit institutions 0,4 0,4 0,8
Leasing liabilities 18,7 20,0 20,0
Contract liabilities 84,0 78,9 124,9
Accounts payables 118,9 112,5 122,8
Current tax liabilities 1,6 2,3 3,6
Other current liabilities 29,4 36,6 38,2
Accrued expenses and prepaid income 65,6 56,4 61,1
Total current liabilities 318,5 307,1 371,3
TOTAL EQUITY AND LIABILITIES 1 310,5 1 271,2 1 296,6

===== SIDA 11 =====

11  |  Balco Group Interim Report  1 January - 31 March 2023 
Consolidated changes in Shareholders’ Equity 
 
 
 
  
MSEK 
Share 
Capital 
Addition
al paid-
in capital Reserves 
Retained 
earnings 
including 
comprehensive 
Non-
controlling 
interest 
Total 
equity 
Opening balance 1 Jan 2022 131,5 405,1 1,3 154,1 - 692,0
Comprehensive income for the period
Profit for the period - - - 19,2 - 19,2
Other comprehensive income for the period - - 0,3 - - 0,3
Total comprehensive income for the period - - 0,3 19,2 - 19,4
Acquisitiom of non-controlling interest - - - - - -
Transactions with shareholders:
Distributed dividend - - - - - -
New warrants issue - - - - - -
Total transactions with Company owners - - - - - -
Closing balance 31 Mar 2022 131,5 405,1 1,6 173,3 - 711,4
       
Opening balance 1 Jan 2023 131,5 406,3 8,3 183,7 1,2 731,0
Comprehensive income for the period
Profit for the period - - - 13,8 -0,1 13,7
Other comprehensive income for the period - - 1,2 - - 1,2
Total comprehensive income for the period - - 1,2 13,8 -0,1 14,9
Acquisitiom of non-controlling interest - - - - - -
Transactions with shareholders:
Distributed dividend - - - - - -
New warrants issue - - - - - -
Total transactions with Company owners - - - - - -
Closing balance 31 Mar 2023 131,5 406,3 9,4 197,5 1,2 745,9

===== SIDA 12 =====

12  |  Balco Group Interim Report  1 January - 31 March 2023 
Consolidated Cash Flow Statements in summary 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2023 2022 2022/23 2022
Operating activities
Operating profit (EBIT) 21,6 25,9 98,2 102,5
Adjustment for non-cash items 14,0 4,7 41,5 32,2
Interest received 0,9 0,2 1,7 1,0
Interest paid -3,7 -1,5 -9,3 -7,0
Income tax paid -19,0 -23,8 -36,1 -41,0
Cash flow from operating activities before changes in working capital 13,8 5,5 96,0 87,7
Changes in working capital
Increase (-)/Decrease (+) in inventories -3,1 -2,5 -5,2 -4,6
Increase (-)/Decrease (+) in current assets 17,0 -55,1 74,9 2,9
Increase (+)/Decrease (-) in current liabilities -62,8 10,4 -6,1 67,1
Cash flow from operating activities -35,1 -41,7 159,6 153,0
Cash flow from investing activities
Investments in intangible fixed assets -2,2 -0,0 -9,3 -7,2
Investments in tangible fixed assets -2,1 -3,2 -15,9 -16,9
Acquisitions of operations -39,5 - -68,0 -28,5
Changes in other non-current assets/liabilities - 0,6 -0,6 -
Cash flow from investing activities -43,8 -2,6 -93,8 -52,6
Cash flow from financing activities
Changes in bank loans 49,5 -50,1 -0,1 -99,7
Changes in leasing -6,3 -2,1 -29,6 -25,4
New warrants issue 0,0 - 1,2 1,2
Distributed dividend - - -43,8 -43,8
Cash flow from financing activities 43,2 -52,2 -72,3 -167,7
Cash flow for the period -35,7 -96,5 -6,4 -67,3
Cash and cash equivalents at beginning of the period 51,9 117,5 21,0 117,5
Exchange rate differential cash and cash equivalents 0,2 0,1 1,8 1,6
Cash and cash equivalents at end of the period 16,4 21,0 16,4 51,9

===== SIDA 13 =====

13  |  Balco Group Interim Report  1 January - 31 March 2023 
Key ratios 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2023 2022 2022/23 2022
Net sales 325,7 288,4 1 370,9 1 333,6
Order intake 245,2 291,8 1 062,0 1 108,6
Order backlog 1 240,7 1 567,3 1 240,7 1 274,7
Gross profit 69,1 73,7 283,0 287,6
Adjusted Gross Profit 72,9 73,7 291,8 292,6
EBITDA 33,3 35,5 142,3 144,5
Adjusted EBITDA 38,5 35,7 149,4 146,6
Operating profit (EBITA) 23,2 26,6 101,7 105,1
Adjusted operating profit (EBITA) 28,4 26,8 108,8 107,2
Operating profit (EBIT) 21,6 25,9 98,2 102,5
Adjusted operating profit (EBIT) 26,9 26,1 105,4 104,6
Gross profit margin, % 21,2 25,5 20,6 21,6
Adjusted gross margin, % 22,4 25,5 21,3 21,9
EBITDA margin, % 10,2 12,3 10,4 10,8
Adjusted EBITDA margin, % 11,8 12,4 10,9 11,0
Operating profit margin (EBITA), % 7,1 9,2 9,6 9,5
Adjusted operating profit margin (EBITA), % 8,7 9,3 8,8 8,4
Operating profit margin (EBIT), % 6,6 9,0 7,2 7,7
Adjusted operating profit margin (EBIT), % 8,2 9,1 7,7 7,8
Operating cash flow -10,8 -13,7 203,3 200,3
Operating cash conversion, % -28,0 -38,5 136,0 136,6
Capital employed, average 883,0 845,3 811,8 716,4
Capital employed, excl. goodwill, average 411,5 397,2 358,9 292,0
Equity, average 737,3 701,7 710,9 645,3
Interest-bearing net debt incl leasing debt 186,6 190,1 186,6 104,8
Interest-bearing net debt excl leasing debt 107,8 101,1 107,8 21,6
Interest-bearing net debt incl. leasing/Adjusted EBITDA 12 months, times 1,2 1,2 1,2 0,7
Interest-bearing net debt excl. leasing/EBITDA (12 months), times 0,9 0,6 0,9 0,2
Return on capital employed, %, (12 months) 11,9 14,6 12,9 16,7
Return on capital employed, excl. goodwill, %, (12 months) 25,6 31,2 29,2 40,9
Return on invested capital, %, (12 months) 9,6 13,3 10,7 14,0
Equity/assets ratio, % 56,8 56,0 55,9 52,3
Number of full-time employees on the closing date 521 484 521 536
Average number of shares before dilution, thousands 21 909 21 909 21 909 21 909
Average number of shares after dilution, thousands 21 909 22 490 21 909 22 103
Equity per share, SEK 33,65 31,20 32,45 29,20

===== SIDA 14 =====

14  |  Balco Group Interim Report  1 January - 31 March 2023 
Parent Company, income statement in summary 
 
 
Parent company, balance sheet in summary 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2023 2022 2022/23 2022
Net sales 6,1 6,5 25,6 26,0
Administrative expenses -5,0 -5,5 -23,6 -24,2
Operating profit 1,1 1,0 1,9 1,8
Interest income  and similar profit/loss items 13,7 0,4 16,6 3,3
Interest expenses  and similar profit/loss items -4,6 -0,9 -11,8 -8,1
Dividend - - - -
Profit/loss after financial items 10,1 0,4 6,8 -2,9
Appropriations - - 62,0 62,0
Tax 0,5 -0,1 -11,7 -12,3
Net profit/loss for the period 10,6 0,3 57,1 46,8
In the Parent Company there are no items that are reported as other comprehensive income, so total comprehensive income is consistent with the profit for the period.
31-mar 31-mar 31-dec
MSEK 2023 2022 2022
ASSETS
Non-current assets
Financial assets
Shares in group companies 745,3 683,2 702,5
Other non-current assets - 1,6 3,1
Total non-current assets 745,3 684,
 8 705,5
Current assets
Receivables from group companies 132,9 142,0 126,3
Other current receivables 30,1 8,2 25,7
Cash and cash equivalents - 20,6 46,3
Total current assets 163,0 170,8 198,3
TOTAL ASSETS 908,3 855,6 903,8
EQUITY AND LIABILITIES
Equity
Restricted equity 131,5 131,5 131,5
Non-restricted equity 351,9 337,4 341,2
Total equity 483,3 468,8 472,7
LIABILITIES
Non-current liabilities
Liabilities to credit institutions 99,1 100,0 50,0
Other non-current liabilities 17,7 29,5 20,3
Total non-current liabilities 116,8 129,5 70,3
Current liabilities
Liabilities to group companies 293,6 248,1 352,0
Other current liabilities 14,6 9,1 8,8
Total current liabilities 308,1 257,3 360,8
TOTAL EQUITY AND LIABILITIES 908,3 855,6 903,8

===== SIDA 15 =====

15  |  Balco Group Interim Report  1 January - 31 March 2023 
Notes 
Note 1 Accounting principles 
This summary consolidated interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting 
and relevant provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in ac-
cordance with RFR 2 and Chapter 9, Interim Reports, of the Swedish Annual Accounts Act. For both the Parent Company and the 
Group, the same accounting policies and computation methods have been applied as in the 2022 Annual Report, which was pre-
pared in accordance with International Financial Reporting Standards and Interpretations as adopted by the EU.  
The information on pages 1-8 relating to the part of the year covered by this interim report constitutes an integral part of this finan-
cial report. 
Note 2 Financial instruments 
The financial instruments measured at fair value are forward exchange contracts. Financial assets at fair value amounted to 0.5 MSEK 
(1.9) at the end of the period while financial liabilities at fair value amounted to 1.3 MSEK (0.2).  
The fair values of financial instruments are determined using valuation techniques. Market information is used as far as possible 
when available, while company-specific information is used as little as possible. If all key inputs required for the fair value measure-
ment of an instrument are observable, the instrument is categorized in level 2. Reported value of trade receivables, other receiva-
bles, cash and cash equivalents, trade payables and other liabilities constitutes a reasonable approximation of fair value. 
 
Note 3 Business segments 
Balco reports the following segments: 
• Renovation: includes replacement and expansion of existing balconies and installation of new balconies on apartment buildings 
without balconies. The segment’s main market driver is the age profile of the residential property portfolio. 
• New Build: includes installation of balconies in conjunctio n with the construction of apartment buildings and balcony solutions 
in the maritime area. The segment is driven mainly by the rate of new residential construction.  
 
 
 
 
  
Jan-Mar
MSEK 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Net sales – External revenue 299,2 246,4 26,4 42,0 - - - - 325,7 288, 4
Net sales – Internal revenue - - - - 6,1 6,6 -6,1 -6,6 - -
Total sales 299,2 246,4 26,4 42,0 6,1 6,6 -6,1 -6,6 325,7 288,4
Operating profit (EBIT) 19,6 23,7 1,3 2,4 0,8 -0,1 - - 21,6 25,9
Depreciation included with 11,1 7,8 0,6 1,7 - - - - 11,6 9,6
of which amortization 1,5 0,6 0,1 0,1 - - - - 1,6 0,7
Items affecting comparison 4,6 - - - 0,6 0,2 - - 5,2 0,2
Adjusted operating profit (EBITA) 25,7 24,2 1,4 2,5 1,4 0,1 - - 28,4 26,8
Adjusted operating margin (EBITA) 8,6% 9,8% 5,2% 5,9% 8,7% 9,3%
Operating profit (EBIT) 19,6 23,7 1,3 2,4 0,8 -0,1 - - 21,6 25,9
Finance income - - - - 0,9 0,0 - - 0,9 0,0
Finance cost - - - - -4,2 -1,5 - - -4,2 -1,5
Profit before tax 19,6 23,7 1,3 2,4 -2,5 -1,6 - - 18,4 24,4
TotalRenovation New Build Group-wide Eliminations

===== SIDA 16 =====

16  |  Balco Group Interim Report  1 January - 31 March 2023 
Note 4 Reconciliation with IFRS financial statements  
Balco’s financial statements include alternative performance measures, which complement the measures that are defined or speci-
fied in applicable rules for financial reporting. Alternative performance measures are presented since, as in their context, they pro-
vide clearer or more in-depth information than the measures defined in applicable rules for financial reporting. The alternative per-
formance measures are derived from the Company’s consolidated financial reporting and are not measured in accordance with 
IFRS. 
 
 
 
31-mar 31-mar 31-dec
MSEK 2023 2022 2022
Interest-bearing net debt incl leasing debt
Non-current interest-bearing liabilities 184,0 190,7 135,9
Current interest-bearing liabilities 19,0 20,4 20,7
Cash and cash equivalents -16,4 - 21,0 -51,9
Interest-bearing net debt incl leasing debt 186,6 190,1 104,8
Adjusted EBITDA (R12) 149,4 162,3 146,6
Interest-bearing net debt/EBITDA (R12), times 1,2 1,2 0,7
Interest-bearing net debt excl leasing debt
Interest-bearing net debt incl leasing debt 186,6 190,1 104,8
Leasing liabilities non-current -60,1 -69,0 -63,3
Leasing liabilities current -18,7 -20,0 -20,0
Interest-bearing net debt excl leasing debt 107,8 101,1 21,6
Interest-bearing net debt/EBITDA excl leasing (R12), times
Adjusted EBITDA (R12) 149,4 162,3 146,6
Leasing depreciations (R12) -26,2 -17,6 -23,4
Adjusted EBITDA (R12) excl leasing depreciations 123,3 144,7 123,2
Interest-bearing net debt/EBITDA excl leasing (R12), times 0,9 0,7 0,2
Return on capital employed
Equity 744,8 711,4 729,8
Interest-bearing net debt 186,6 190,1 104,8
Average capital employed 916,5 794,1 811,8
Adjusted operating profit (EBIT), (R12) 105,4 123,8 104,6
Return on capital employed, % 11,5 15,6 12,9
Equity/assets ratio
Equity attributable to owners of the parent company 744,8 711,4 729,8
Total assets 1 310,5 1 271,2 1 296,6
Equity/assets ratio, % 56,8 56,0 56,3

===== SIDA 17 =====

17  |  Balco Group Interim Report  1 January - 31 March 2023 
 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2023 2022 2022/23 2022
Adjusted operating profit (EBIT)
Operating profit (EBIT 21,6 25,9 98,2 102,5
Items affecting comparison
Adjustment of earn-out - - -10,7 -10,7
Re-structuring costs 4,6 - 16,9 12,3
Acquisition costs 0,6 0,2 0,9 0,5
Adjusted operating profit (EBIT) 26,9 26,1 105, 4 104,6
Operating profit (EBITA)
Operating profit (EBIT) 21,6 25,9 98,2 102,5
Amortization 1,6 0,7 3,5 2,6
Operating profit (EBITA) 23,2 26,6 101,7 105,1
Adjusted operating profit (EBITA)
Adjusted operating profit (EBIT) 26,9 26,1 105,4 104,6
Amortization 1,6 0,7 3,5 2,6
Adjusted operating profit (EBITA) 28,4 26,8 108,8 107,2
EBITDA
Operating profit (EBIT) 21,6 25,9 98,2 102,5
Depreciation and amortization 11,6 9,6 44,1 42,0
EBITDA 33,3 35,5 142,3 144,5
Adjusted EBITDA
Adjusted operating profit (EBIT) 26,9 26,1 105,4 104,6
Depreciation and amortization 11,6 9,6 44,1 42,0
Adjusted EBITDA 38,5 35,7 149,4 146,6
Investments, excluding expansion investments
Investments in intangible fixed assets -2,2 -0,0 -9,3 -7,2
Investments in tangible fixed assets -2,1 -3,2 -15,9 -16,9
of which expansion investments 2,6 1,0 13,8 12,1
Investments, excluding expansion investments -1,6 -2,2 -11,4 -12,0
Operating cash flow
Adjusted EBITDA 38,5 35,7 149,4 146,6
Changes in working capital -47,7 -47,2 65,3 65,7
Investments, excluding expansion investments -1,6 -2,2 -11,4 -12,0
Operating cash flow -10,8 -13,7 203,3 200,3
Net Sales excluding acquisitions
Net Sales 325,7 288,4 1 370,9 1 333,6
Acquired net sales -9,5 -33,4 -22,7 -46,6
Net Sales excluding acquisitions 316,2 255,0 1 348,1 1 287,0

===== SIDA 18 =====

18  |  Balco Group Interim Report  1 January - 31 March 2023 
Note 5 Acquisition 
On March 2, 2023, Balco entered into an agreement for the acquisition of all shares in NMT Montageteknik i Norden AB, a company 
in Sundsvall that offers total contracting in balcony renovation in northern Sweden. The acquisition is expected to contribute posi-
tively to earnings per share already in 2023. 
NMT Montageteknik i Norden AB had a turnover of 49 MSEK during the last operating year. The acquisition has been financed with 
existing cash and cash equivalents. 
More information can be found in press releases from March 2, 2023. 
NMT Montageteknik i Norden AB is consolidated as of March 1, 2023. 
The acquisition calculation is preliminary. 
 
 
 
  
The purchase price comprises the following components (MSEK)
Cash payment 42,8
Aquired net assets -15,3
Goodwill 27,5
The following assets and liabilities were included in the acquisition (M
Cash and cash equivalents 6,1
Tangible fixed assets 1,6
Intangible assets 8,3
Receivables 12,1
Liabilities -10,2
Deferred tax liabilities -2,6
Acquired net assets 15,3

===== SIDA 19 =====

19  |  Balco Group Interim Report  1 January - 31 March 2023 
Alternative performance measures 
This interim report contains references to a number of performance measures. Some of these measures are defined in IFRS, while 
others are alternative measures and are not reported in accordance with applicable financial reporting frameworks or other legisla-
tion. The measures are used by Balco to help both investors and management to analyse its operations. The measures used in this 
interim report are described below, together with definitions and the reason for their use. 
Alternative performance measures Definition Reason for use 
Return on equity Income for the period divided by the average 
shareholder equity for the period. Average cal-
culated as the average of the opening balance 
and the closing balance for the period.  
Return on equity shows the return that is gener-
ated on the shareholders’ capital that is invested in 
the company.  
Return on capital employed Adjusted EBIT as a percentage of average capi-
tal employed for the period. Average calcu-
lated as the average of the opening balance 
and the closing balance for the period.  
Return on capital employed shows the return that 
is generated on capital employed by the company, 
and is used by Balco to monitor profitability as it 
relates to the capital efficiency of the company. 
Return on capital employed ex-
cluding goodwill 
Adjusted EBIT as a percentage of average capi-
tal employed for the period excluding good-
will. Average calculated as the average of the 
opening balance and the closing balance for 
the period. 
Balco believes that return on capital employed ex-
cluding goodwill together with return on capital 
employed shows a complete picture of Balco's cap-
ital efficiency. 
Gross income Revenue less production and project costs. Shows the effectiveness of Balco's operations and 
together with EBIT provides a complete picture of 
the operating profit generation and expenses. 
Gross margin Gross income as a percentage of net sales. Ratio is used for analysis of the company’s effec-
tiveness and profitability. 
EBITDA Earnings before interest, tax, depreciation and 
amortization. 
Balco believes that EBITDA shows the profit gener-
ated by the operating activities and is a good 
measure of cash flow from operations. 
Interest-bearing net debt relative 
to adjusted EBITDA 
Interest-bearing external net debt divided by 
adjusted EBITDA.  
Balco believes this ratio helps to show financial risk 
and is a useful measure for Balco to monitor the 
level of the company’s indebtedness.  
Adjusted EBITDA EBITDA as adjusted for items affecting compa-
rability. For a reconciliation of adjusted EBITDA 
to income for the period.   
Balco believes that adjusted EBITDA is a useful 
measure for showing the company’s profit gener-
ated by the operating activities after adjusting for 
items affecting comparability, and primarily uses 
adjusted EBITDA for purposes of calculating the 
company’s operating cash flow and cash conver-
sion.  
Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales. Balco believes that adjusted EBITDA margin is a 
useful measure for showing the company’s profit 
generated by the operating activities after non-re-
curring items. 
Adjusted EBIT margin Adjusted EBIT as a percentage of net sales.  Balco believes that adjusted EBIT margin is a useful 
measure for showing the company’s profit gener-
ated by the operating activities. 
Adjusted EBIT EBIT adjusted for items affecting comparability. 
For a reconciliation of adjusted EBIT to income 
for the period. 
Balco believes that adjusted EBITA is a useful meas-
ure for showing the company’s profit generated by 
the operating activities, and primarily uses adjusted 
EBIT for calculating the company’s return on capital 
employed.  
Adjusted EBITA margin Adjusted EBITA as a percentage of net sales.  Balco believes that adjusted EBITA margin is a use-
ful measure for showing the company’s profit gen-
erated by the operating activities.

===== SIDA 20 =====

20  |  Balco Group Interim Report  1 January - 31 March 2023 
Alternative performance measures Definition Reason for use 
Adjusted EBITA EBITA adjusted for items affecting comparabil-
ity. For a reconciliation of adjusted EBIT to in-
come for the period. 
Balco believes that adjusted EBIT is a useful meas-
ure for showing the company’s profit generated by 
the operating activities, and primarily uses adjusted 
EBIT for calculating the company’s return on capital 
employed.  
Items affecting comparability Items affecting comparability are significant 
items reported separately due to their size or 
frequency, e.g. restructuring costs, write-
downs, divestments and acquisition costs. 
Balco believes that adjustment for items affecting 
comparability improves the possibility of compari-
son over time by excluding items with irregularity 
in frequency or size. This is to give a more accurate 
picture of the underlying operating profit. 
Operating cash conversion Operating cash flow divided by adjusted 
EBITDA. 
Balco believes this is a good measure for compar-
ing cash flow with operating profit. 
Operating cash flow  Adjusted EBITDA increased/decreased with 
changes in net working capital less invest-
ments, excluding expansion investments.  
Operating cash flow is used by Balco to monitor 
business performance. 
Organic growth Net sales excluding acquired growth current 
period divided by net sales during the corre-
sponding period last year. 
Organic growth excludes the effects of changes in 
the Group's structure, which enables a comparison 
of net sales over time. 
Interest-bearing net deb 
 
The sum of non-current interest-bearing liabili-
ties and current interest-bearing liabilities.  
Balco believes interest-bearing net debt is a useful 
measure to show the company’s total debt financ-
ing.  
Net working capital Current assets excluding cash and cash equiva-
lents and current tax assets less non-interest-
bearing liabilities excluding current tax liabili-
ties. 
This measure shows how much net working capital 
that is tied up in the operations and can be put in 
relation to sales to understand how effectively net 
working capital tied up in the operations is used. 
EBIT margin EBIT as a percentage of net sales. Balco believes EBIT margin is a useful measure to-
gether with net sales growth and net working capi-
tal to monitor value creation. 
EBIT Earnings before interest and tax.  Balco believes that EBIT shows the profit generated 
by the operating activities.  
EBITA margin EBITA as a percentage of net sales. Balco believes EBITA margin is a useful measure to-
gether with net sales growth and net working capi-
tal to monitor value creation. 
EBITA EBIT excluding amortization on acquired intan-
gible assets.  
Balco's growth strategy includes acquiring compa-
nies. In order to better illustrate the development 
of the underlying business, the management has 
chosen to follow EBITA, which is an expression of 
the operating profit before depreciation and write-
downs of acquired intangible assets.  
Equity/asset ratio Equity divided on total assets.  Balco believes that equity to asset ratio is a useful 
measure for the company's survival. 
Capital employed Equity plus interest-bearing net debt. Capital employed is used by Balco to indicate the 
general capital efficiency of the company. 
Capital employed excluding good-
will 
Capital employed minus goodwill. Capital employed excluding goodwill is used to-
gether with capital employed by Balco as a meas-
ure of the company's capital efficiency.

===== SIDA 21 =====

Balco Group in brief 
Balco Group is a market leader in the balcony industry, where we develop, manufacture, sell, 
and take responsibility for the installation of our own bespoke open and glazed balcony sys-
tems. The Group's customised products contribute to enhanced quality of life, security, and in-
creased value for residents in multi-occupancy buildings. Furthermore, Balco Group's stand-
ardised glazing systems result in reduced energy consumption.
 
521 employees 
 
Balco Group was established in 1987 and is a group 
consisting of producing and selling companies. The 
Group's seven brands belong to the companies Balco 
AB, Balco Altaner AS, TBO-Haglinds AB, Stora Fasad 
AB, RK Teknik i Gusum AB, Söderåsen Mur & Kakel AB 
and NMT Montageteknik i Norden AB. The group is 
the market leader in Scandinavia and operates in sev-
eral markets in northern Europe. The head office is lo-
cated in Växjö and the group has more than 500 em-
ployees. A general and distinctive feature of the com-
panies in the Group is that they control the entire 
value chain - from sales work to installed balcony - 
through a decentralised and efficient process.  
7 markets 
1 371 MSEK net sales R12 
27 000  sqm total production area