Kvartalsrapport Q1 2024

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

Interim Report Q1 
JANUARY – MARCH 2024  
"Balco Group has acquired the Finnish companies Riikku Group Oy and Suomen ohutlevyasennus Oy with a 
total turnover of approx. 50 MEUR. Through these acquisitions, we take a leading market position in Fin-
land, where we were previously weaker than in the other Nordic markets. The acquisitions are in line with 
our long-term strategy to be the leading balcony supplier in the Nordics."  
 
"Another project has been obtained in Norway where we integrate air-to-air heat pumps with our balcony 
solutions." 
 
- Camilla Ekdahl, President and CEO 
 
Two acquisitions in Finland contribute positively 
The first quarter: January – March 
• Net sales amounted to 326 MSEK (326)  
• Order intake increased by 44 percent to 352 MSEK (245)  
• Order backlog increased by 12 percent to 1,392 MSEK (1,241) 
• Adjusted operating profit (EBITA) amounted to 16 MSEK (28) 
• Operating profit (EBITA) amounted to 13 MSEK (23)  
• Net profit after tax amounted to 2 MSEK (14) 
• Earnings per share amounted to 0.10 SEK (0.63) 
• Operating cash flow amounted to 18 MSEK (-11) 
 
Events during the quarter and since the end of the quarter 
• January 22 Balco Group acquired the Finnish group Riikku Group Oy with a turnover of approximately 40 MEUR. This is 
Balco Group’s largest acquisition to date. 
• March 6 Balco Group acquired the Finnish company Suomen ohutlevyasennus Oy with a turnover of approximately 11 
MEUR. 
• Another major project has been obtained in Norway where heat pumps are integrated into the balcony solution, value 
approximately 65 MNOK. 
 
 
 
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2024 2023 2023/24 2023
Net sales 326,4 325,7 1 215,7 1 214,9
Order intake 352, 0 245,2 1 083,8 977,0
Order backlog 1 392,2 1 240,7 1 392,2 1 073,6
Adjusted Operating profif (EBITA) 16,3 28,4 77,7 89,8
Adjusted Operating margin (EBITA), % 5,0 8,7 6,4 7,4
Operating profit (EBITA) 13,0 23,2 67,0 77,1
Operating profit margin (EBITA), % 4,0 7,1 5,5 6,4
Net profit for the period 2,3 13,7 35,1 46,5
Operating cash flow 18,0 -10,8 32,3 3,6
Earnings per  share, SEK before dilution 0,10 0,63 1,60 2,12
Earnings per share, SEK, after dilution 0,10 0,63 1,60 2,12

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

2  |  Balco Group Interim Report  1 January - 31 March 2024 
Two acquisitions in Finland and additional project in Norway 
with heat pumps
Order intake increased significantly in the quarter, +44 
percent the increase comes from the new acquisitions 
we made during the quarter. The organic order intake 
was at the same level as the previous year. Net sales  
were, as expected, weak based on the lower order 
backlog we had at the start of the year, but it was also 
affected by the long winter in the Nordic countries, 
which delayed certain projects. 
The market situation 
The improved inflation situation and the discussions 
about expected interest rate cuts means that our cus-
tomers have an increased willingness to invest, but the 
trend we have seen in recent quarters that the pro-
cesses take longer is continuing. It is important that we 
now begin to see that the discussed interest rate cuts  
are implemented. 
Balco's unique sales model supported by financial ex-
pertise is important in our dialogues with customers. 
We continue to work closely with customers and help 
them throughout the process.  
Acquisitions in Finland  
During Q1, Balco Group has made two acquisitions in 
Finland, Riikku Group Oy and Suomen ohutlevyasennus 
Oy.  
Suomen ohutlevyasennus is a Finnish facade and turn-
key company situated in Turku with a turnover of ap-
proximately 11 MEUR. Just over 90 percent of their turn-
over comes from the renovation segment, where the 
company has been very successful in obtaining and 
running larger facade renovation projects with addi-
tional insulation and replacement of balcony glazing in 
apartment buildings. Balco Group has acquired 60 per-
cent of the company and has an option to buy the re-
maining 40 percent of the shares. 
Through these two acquisitions, we take a leading mar-
ket position in Finland, where we were previously weak. 
The acquisitions are in line with our long-term strategy 
to be the leading balcony supplier in the Nordics and 
to be able to run larger turnkey projects for the green 
transformation of residential properties to more en-
ergy-efficient properties. 
Green transformation and renovation  
Our investment in being able to run projects aimed at 
a more comprehensive energy saving on the property 
continues to meet with great interest. During the quar-
ter, we have obtained another large order in Norway 
where we will install our unique solution with air -to-air 
heat pumps and solar cells , value approximately 65 
MNOK. This is the third project we get in Norway with 
heat pumps that are integrated with the balconies. 
 
Another independent analysis in Norway regarding the 
effect on energy savings when glazing a balcony with 
the Balco brand shows the same results as before. Glaz-
ing from Balco provides an energy saving of between 
20-30 percent, depending on the size of the balcony 
and direction. This once again strengthens our market 
case that glazing from Balco is a trigger to be able to 
make further improvements to the property's energy 
consumption and thus be able to get  the opportunity 
for better financing conditions and other energy sup-
port that may be available in the local markets. 
Continued cost focus 
We have not yet seen a strong recovery in the market 
despite increased willingness to invest, which is why our 
previous assessment that we will continue to have an 
impact on sales and results in the coming quarters re-
mains. We continue to work on reviewing our costs and 
organization on an ongoing basis. During the quarter, 
we have decided to move production between our 
companies to get better synergies within certain pro-
duction processes. This means staff cuts at some of our 
units/factories.  
In line with what we previously communicated, on the 
company's side, we prioritize maintaining important 
key competence within the group as we have a long-
term focus. So that we are well prepared for an in-
creased order intake. 
Camilla Ekdahl  
President and CEO

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

3  |  Balco Group Interim Report  1 January - 31 March 2024 
The group’s development 
 
The first quarter: January – March 
Net sales amounted to 326 MSEK (326). Acquired growth was 31 percent, currency 
effect was 1 percent and organic growth was -32 percent. Net sales for the renova-
tion segment amounted to 222 MSEK (299) and net sales for the New Build segment 
amounted to 104 MSEK (26). 
Order intake increased by 44 percent to 352 MSEK (245). Acquired order intake was 
46 percent and organic order intake was -2 percent. The Renovation segment ac-
counted for 285 MSEK (199) and the New Build segment accounted for 67 MSEK (46). 
The order backlog increased by 12 percent to 1,392 MSEK (1,241), of which 24 percent 
was acquired order backlog. The order backlog for the Renovation segment 
amounted to 1,038 MSEK (1,091) and the order backlog for the New Build segment 
amounted to 354 MSEK (150).  
Gross profit amounted to 67 MSEK (69), entailing a gross margin of 20.6 percent 
(21.2). The gross margin has decreased due to a different cost structure in the ac-
quired companies with a slightly lower gross margin than the group average. In addi-
tion, the gross margin is affected by low occupancy in the group's production facili-
ties and in the project organization, as well as an unusually cold and snowy first 
quarter in the Nordic countries. 
Sales costs amounted to 31 MSEK (29) and administrative costs amounted to  
26 MSEK (19). The increase comes from the acquired companies. Items affecting 
comparability of -3 MSEK (-1) were taken in the quarter linked acquisition costs. 
Adjusted operating profit (EBITA) amounted to 16 MSEK (28), corresponding to an 
adjusted operating margin of 5.0 percent (8.7). Operating profit (EBITA) amounted to 
13 MSEK (23), corresponding to an operating margin of 4.0 percent (7.1).  
Net financial items amounted to -9 MSEK (-3), of which -0.4 MSEK (-0.4) refers to 
interest costs linked to right-to-use assets (leasing) and 4 MSEK are unrealized for-
eign exchange losses. Interest costs of -5 MSEK (-3) have increased linked to in-
creased borrowing in connection with completed acquisitions and higher market 
interest rates. Profit after tax amounted to 2 MSEK (14), while comprehensive income 
for the period amounted to SEK 9 million (15) after positive currency translation dif-
ferences. Earnings per share increased to 0.10 SEK (0.63). 
Operating cash flow amounted to 18 MSEK (-11). The timing of building permits and 
the phases of the projects affect the cash flow between quarters. 
Net sales per customer category, MSEK 
 
 
Net sales per geographic market, MSEK  
 
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
2024 2023 2023/24 2023
Tenant-owner associations 153,7 230,8 713,2 790,3
Private landlords 22,3 14,3 126,6 118,5
Publicly owned companies 12,1 16,9 45,7 50,5
Construction companies 138,3 63,7 330,2 255,6
Total net sales 326,4 325,7 1 215,7 1 214,9
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
2024 2023 2023/24 2023
Sweden 132,1 207,7 677,0 752,6
Other Nordics 162,3 89,6 382,7 310,0
Other Europe 32,0 28,3 156,0 152,3
Total net sales 326,4 325,7 1 215,7 1 214,9
 
 
 
 
Order intake per segment, MSEK 
        
         
 
 
 
Order backlog, MSEK 
       
 
 
Net sales, MSEK 
  
 
 
Adjusted operating profit, MSEK 
 
     
 100
 200
 300
 400
 500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2022 2023 2024
New Build Ren ovation
 250
 500
 750
1 000
1 250
1 500
1 750
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2022 2023 2024
0
300
600
900
1 20 0
1 50 0
 100
 20 0
 30 0
 4 00
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
202 2 202 3 202 4
0
50
100
150
 10
 20
 30
 40
 50
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
202 2 202 3 202 4
Order intake 
Q1 2024 
352 MSEK 
Net sales 
 R12 
Adjusted operating profit 
 R12

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

4  |  Balco Group Interim Report  1 January - 31 March 2024 
Development per segment 
Renovation 
The first quarter 
Net sales amounted to 222 MSEK (299). The segment accounted for 68 percent (92) of Balco’s total net sales.  
Order intake increased by 43 percent to 285 MSEK (199), which corresponds to 81 percent (81) of the total order intake.  
The adjusted operating profit (EBITA) amounted to 11 MSEK (26) corresponding to an adjusted operating margin of 4.8 percent 
(8.6).  
The order backlog amounted to 1,038 MSEK (1,091) which corresponds to 75 percent (88) of the total order backlog. 
 
 
 
New build 
The first quarter 
Net sales amounted to 104 MSEK (26). The segment accounted for 32 percent (8) of Balco’s total net sales.  
Order intake increased by 46 percent to 67 MSEK (46) which corresponds to 19 percent (19) of the total order intake.  
The adjusted operating profit (EBITA) amounted to 6 MSEK (1) corresponding to an adjusted operating margin of 5.3 percent 
(5.2).  
The order backlog has increased to 354 MSEK (150), which corresponds to 25 percent (12) of the total order backlog. 
 
   
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
Renovation, MSEK 2024 2023 2023/24 2023
Net sales 222,0 299,2 1 010,8 1 088,0
Adjusted Operating profit (EBITA) 10,7 25,7 68,8 83,8
Adhusted Operating margin (EBITA), % 4,8 8,6 6, 8 7,7
Order intake 284,9 199,2 924,4 838,7
Order backlog 1 037,8 1 090,6 1 037,8 925,5
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
New Build, MSEK 2024 2023 2023/24 2023
Net sales 104,4 26,4 204,9 126,9
Adjusted Operating profit (EBITA) 5,6 1,4 9,0 4,8
Adhusted Operating margin (EBITA), % 5,3 5,2 4,4 3,8
Order intake 67,1 46,0 159,4 138,3
Order backlog 354,4 150,1 354,4 148,1

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

5  |  Balco Group Interim Report  1 January - 31 March 2024 
Financial position and cash flow 
Liquidity and financial position  
Interest-bearing net debt including leasing debt at the end of the quarter amounted 
to 377 MSEK (187). Interest-bearing net debt including leasing debt in relation to 
adjusted EBITDA amounted to 3.2 times (1.2). 
Interest-bearing net debt excluding leasing debt amounted to 310 MSEK (108). Inter-
est-bearing net debt excluding leasing debt in relation to adjusted EBITDA 
amounted to 3.2 times (0.9). 
Including 12 month result of the acquired companies, net debt in relation to adjusted 
EBITDA amounted to 2.2 times. 
At the end of quarter, the Group’s equity amounted to 801 MSEK (746).  
The Group’s equity ratio was 47 percent (57).  
 
Cash flow, investments and amortization/depreciation 
For the quarter, cash flow from operating activities amounted to 13 MSEK (-35).  
Cash flow from investing activities amounted to -82 MSEK (-44), of which -0 MSEK 
 (-1) was replacement investments and -2 MSEK (-3) expansion investments and  
-80 MSEK (-40) acquisition of shares in subsidiaries. 
Cash flow from financing activities amounted to 118 MSEK (43) where the largest 
items refer increased utilization of the revolving credit facility.  
Cash flow for the quarter amounted to 50 MSEK (-36).  
Depreciation for the quarter amounted to -13 MSEK (-12), of which -5 MSEK (-6) re-
fers to depreciation linked to right-to-use assets (leasing) and- 2 MSEK (-2) refers to 
amortization of acquired intangible assets. 
The Parent Company 
The Parent Company has its registered office in Växjö and conducts operations di-
rectly as well as through Swedish and foreign subsidiaries. The Parent Company’s 
operations are focused primarily on strategic development, financial control, corpo-
rate governance issues, board work and relations with banks. 
The operating result for the quarter amounted to 1 MSEK (1).  
31-mar 31-mar 31-dec
MSEK 2024 2023 2023
Non-current liabilities to credit institutions 343,5 123,8 174,2
Leasing liabilities non-current 49,4 60,1 51,2
Current liabilities to credit institutions 15,7 0,4 -
Leasing liabilities current 17,3 18,7 19,0
Cash and cash equivalents -49,1 -16,4 -2,8
Interest-bearing net debt incl leasing debt 376,7 186,6 241,6
Interest-bearing net debt excl leasing debt 310,1 107,8 171,4
Interest-bearing net debt incl. leasing/EBITDA (12 
months), times 3,2 x 1,2 x 1,9 x
Interest-bearing net debt excl. leasing/EBITDA (12 
months), times 3,2 x 0,9 x 1,6 x
Equity/assets ratio, % 46,9 56,8 58,9
External interest-bearing net debt  
relative to EBITDA   
    
 
 
 
 
    
Operating cash flow R12, MSEK 
     
 
 
 
 
 
 
 
 
 
 0,0
 1,0
 2,0
 3,0
 4 ,0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2022 2023 2024
 50
 100
 150
 200
 250
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2022 2023 2024
Equity ratio 
47 %

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

6  |  Balco Group Interim Report  1 January - 31 March 2024 
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 
manufacturing 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 re-
moved and replaced with new, larger glazed balconies with a lifespan of over 90 years, which provides the market's most eco-
nomical and sustainable 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 ser-
vices, 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 increased 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 pro-
cess from project planning to final inspection 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 segment includes balconies in the construction of 
multi-residential properties as well as balcony projects in 
the maritime market. Balco expands selectively with a focus 
on profitability 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 hard to 
incorporate sustainability 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 climate-smart solutions with a long lifespan.  
 
As an important step in our sustainability work and aim to be a leader in climate change in its industry, Balco Group has 
committed to developing short-term and long-term targets for emission reduction including net zero targets in line with 
the Science Based Targets initiative (SBTi).  
 100
 200
 300
 400
2023
2024
2023
2024
2023
2024
2023
2024
Q1 Q2 Q3 Q4
New  Bu ild R eno vat ion
 5,0
 10,0
 15,0
2023
2024
2023
2024
2023
2024
2023
2024
Q1 Q2 Q3 Q4
New  Bu ild R eno vat ion

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

7  |  Balco Group Interim Report  1 January - 31 March 2024 
Other information 
Employees 
At the end of March 2024 Balco had 673 (521) full-time employees. The increase comes from the acquired companies Riikku Group Oy 
and Suomen ohutlevyasennus Oy. 
Seasonal variations 
Balco’s sales and earnings are partially affected by the date when orders are placed, seasonal variations and the fact that the annual 
general meetings of tenant-owner associations normally take place in the second and fourth quarter. In addition, the Group is posi-
tively affected by months with a large number of workdays and lack of absences, and somewhat negatively affected by weather fac-
tors, when winters with significant volumes of snow entail increased costs.  
Shares, share capital and shareholders 
At the end of March 2024, there were 23,021,648 shares in Balco, corresponding to a share capital of 138,135,310 SEK. There were 
5,421 shareholders. The five largest shareholders were The Family Hamrin, Skandrenting AB, Swedbank Robur fonder, Lannebo Fonder 
and Tredje AP-fonden. 
Related-party transactions 
Related parties comprise the Board of Directors, Group management and the CEO. This is due to ownership stakes in Balco and posi-
tions 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 transactions take place on commercial terms. For further information, see pages 79 and 99 in the 2023 Annual Report. 
Incentive program  
Balco Group AB has two 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 420,000 warrants, which entitles to a maximum of 
new subscriptions of the corresponding number of shares. Balco's total cost for the incentive programs during the term of the pro-
grams is expected to amount to approximately 3 MSEK. The programs involve a dilution corresponding to approximately 2 percent of 
the company's total number of shares. The senior executives in Balco have acquired 129,332 warrants amounting to a total value of 
1,002,464 SEK. The purpose of the incentive programs is to encourage broad shareholding among Balco's employees, facilitate re-
cruitment, retain competent employees and increase motivation to achieve or exceed the company's financial goals. For more infor-
mation, see the Annual Report 2023 on pages 76, 78 and 113.   
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 be-
cause 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 inno-
vative products and solutions, that the Group can attract and retain qualified employees and that Balco's profitability depends on the 
results of the individual projects, 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 30-35, 42, 87-
88, 91 and 94 in the Annual Report for 2023.  
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 coun-
tries where Balco Group is represented is estimated at just over 40 billion SEK. 
Our financial position means that the company is equipped for growth through selective acquisitions that strengthen our market posi-
tion in existing markets. The timing of building permits affects cash flow between quarters. The lower order intake in the past year will 
affect sales and earnings in coming quarters. We continue to focus on costs and make adjustments to the organization based on 
changes in occupancy and order intake but retain important competence so that the company is not damaged in the long term.

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

8  |  Balco Group Interim Report  1 January - 31 March 2024 
Financial targets 
Revenue growth  
Balco shall achieve growth of 10 percent per year during a business cycle. 
Profitability  
Earnings per share shall grow by 20 percent per year during a business cycle. 
Capital structure 
Interest-bearing net debt shall not exceed 2.5 times operating profit before depreciation and amortization (EBITDA), other than 
temporarily. 
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. 
 
 
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 29, 2024, at 13:00 CET. 
 
Växjö, April 29, 2024 
Camilla Ekdahl 
President and CEO 
 
 
 
 
 
 
 
  
Web conference 
A webcast conference call will be held at 14: 00 CET April  29, 2024, 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/q1-2024/ 
 
To participate via teleconference and be able to ask questions, call in:  
 
SE: +46 8 5050 0829  
PIN: 879 6427 2591# 
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 2024  
Annual General Meeting 2024 May 14, 2024 
Interim report Jan-Jun 2024 July 12, 2024 
Interim report Jan-Sep 2024 October 28, 2024 
Year-end report Jan-Dec 2024 February 10, 2025 
Annual Report 2024 March 14, 2025 
Interim report Jan-Mar 2025 April 28, 2025

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

9  |  Balco Group Interim Report  1 January - 31 March 2024 
Consolidated statement of comprehensive income 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2024 2023 2023/24 2023
Net sales 326,4 325,7 1 215,7 1 214,9
Production and project costs -259,1 -256,6 -972,0 -969,5
Gross profit 67,4 69,1 243,6 245,4
Sales costs -31,1 -29,1 -110,4 -108,4
Administration costs -25,7 -19,4 -82,9 -76,7
Other operating income 0,4 1,2 9,5 10,3
Other operating expenses -0,0 -0,1 -0,2 -0,2
Operating costs -56,4 -47,5 -183,9 -175,0
Operating profit 11,0 21,6 59,7 70,4
Finance income 2,0 0,9 4,9 3,7
Finance costs -10,8 -4,2 -24,7 -18,1
Profit before tax 2,2 18,4 39,9 56,0
Income tax 0,1 -4,7 -4,8 -9,5
Net profit for the period 2,3 13,7 35,1 46,5
Other comprehensive income
Translation difference when translating foreign operations 6,9 1,2 9,1 3,4
Comprehensive income for the period 9,2 14,9 44,2 49,9
Of which attributable to:
Parent company's shareholders 8,4 15,0 42,7 49,2
Non-controlling interest 0,8 -0,1 1,5 0,6
Comprehensive income for the period 9,2 14,9 44,2 49,9
Earnings per share, SEK, before dilution 0,10 0,63 1,60 2,12
Earnings per share, SEK, after dilution 0,10 0,63 1,60 2,12
Average number of shares before dilution, thousands 22 766 21 909 22 124 21 909
Average number of shares after dilution, thousands 22 766 21 909 22 124 21 909
Items that may later be reclassified to the income statement

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

10  |  Balco Group Interim Report  1 January - 31 March 2024 
Consolidated balance sheet in summary 
 
31-mar 31-mar 31-dec
MSEK 2024 2023 2023
ASSETS
Non-current assets
Intangible assets
Goodwill 513,0 485,3 485,2
Other intangible assets 283,9 144,3 142,2
Total intangible assets 796,9 629,6 627,3
Tangible assets
Right-to-use assets 66,3 77,7 70,5
Property, plant and equipment 236,7 164,9 161,9
Total tangible assets 303,0 242,6 232,4
Financial assets 3,6 - -
Deferred tax assets 0,5 0,6 0,3
Total non-current assets 1 104,0 872,8 860,1
Current assets
Inventory 73,9 61,7 51,5
Accounts receivables 221,2 154,6 138,0
Contract assets 203,6 144,8 177,1
Current tax receivables 18,1 35,1 15,4
Other current receivables 27,9 25,1 22,4
Cash and cash equivalents 49,1 16,4 2,8
Total current assets 593,7 437,7 407,2
TOTAL ASSETS 1 697,8 1 310,5 1 267,2
EQUITY AND LIABILITIES
Equity
Share capital 138,1 131,5 131,5
Other capital contributions 449,9 406,3 406,3
Reserves 18,5 9,4 11,6
Retained earnings, incl. profit for year 190,2 197,5 196,7
Equity attributable to Parent Company’s shareholders 796,7 744,8 746,1
Non-controlling interest 4,6 1,1 1,8
TOTAL EQUITY 801,3 745,9 748,0
LIABILITIES
Non-current liabilities
Liabilities to credit institutions 343,5 123,8 174,2
Leasing liabilities 49,4 60,1 51,2
Other non-current liabilities 71,4 18,7 1,4
Deferred tax liabilities 38,4 43,4 41,7
Total non-current liabilities 502,7 246,1 268,5
Current liabilities
Liabilities to credit institutions 15,7 0,4 -
Leasing liabilities 17,3 18,7 19,0
Contract liabilities 41,1 84,0 50,0
Accounts payables 160,3 118,9 91,0
Current tax liabilities 1,3 1,6 0,8
Other current liabilities 68,7 29,4 28,5
Accrued expenses and prepaid income 89,6 65,6 61,4
Total current liabilities 393,8 318,5 250,7
TOTAL EQUITY AND LIABILITIES 1 697,8 1 310,5 1 267,2

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

11  |  Balco Group Interim Report  1 January - 31 March 2024 
Consolidated changes in Shareholders’ Equity 
 
 
  
MSEK 
Share 
Capital 
Additional 
paid-in 
capital Reserves 
Retained 
earnings 
including 
comprehensive 
income for the 
Non-
controlling 
interest 
Total 
equity 
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:
Total transactions with Company owners - - - - - -
Closing balance 31 Mar 2023 131,5 406,3 9,4 197,5 1,2 745,9
       
Opening balance 1 Jan 2024 131,5 406,3 11,6 196,7 1,8 748,0
Comprehensive income for the period
Profit for the period - - - 1,5 0,8 2,3
Other comprehensive income for the period - - 6,9 - - 6,9
Total comprehensive income for the period - - 6,9 1,5 0,8 9,2
Acquisitiom of non-controlling interest - - - - 2,0 2,0
Transactions with shareholders:
New shares issue 6,7 43,5 - -8,1 - 42,1
New warrants issue - - - - - -
Total transactions with Company owners 6,7 43,5 - -8,1 - 42,1
Closing balance 31 Mar 2024 138,1 449,9 18,5 190,2 4,6 801,3

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

12  |  Balco Group Interim Report  1 January - 31 March 2024 
Consolidated Cash Flow Statements in summary 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2024 2023 2023/24 2023
Operating activities
Operating profit (EBIT) 11,0 21,6 59,7 70,4
Adjustment for non-cash items 5,4 14,0 30,3 38,9
Interest received 1,0 0,9 3,8 3,7
Interest paid -5,8 -3,7 -18,6 -16,5
Income tax paid -4,3 -19,0 8,9 -5,8
Cash flow from operating activities before changes in working capital 7,2 13,8 84,1 90,7
Changes in working capital
Increase (-)/Decrease (+) in inventories -4,7 -3,1 5,7 7,4
Increase (-)/Decrease (+) in current assets -17,7 17,0 -30,4 4,3
Increase (+)/Decrease (-) in current liabilities 28,4 -62,8 -37,3 -128,5
Cash flow from operating activities 13,2 -35,1 22,2 -26,1
Cash flow from investing activities
Investments in intangible fixed assets -0,9 -2,2 -4,4 -5,6
Investments in tangible fixed assets -1,4 -2,1 -7,0 -7,7
Acquisitions of operations -79,7 -39,5 -79,7 -39,5
Cash flow from investing activities -82,0 -43,8 -91,2 -52,9
Cash flow from financing activities
Changes in bank loans 123,5 49,5 159,8 85,8
Changes in leasing -5,1 -6,3 -22,1 -23,4
Distributed dividend - - -32,9 -32,9
Cash flow from financing activities 118,4 43,2 104,9 29,6
Cash flow for the period 49,6 -35,7 35,9 -49,4
Cash and cash equivalents at beginning of the period 2,8 51,9 16,4 51,9
Exchange rate differential cash and cash equivalents -3,3 0,2 -3,2 0,4
Cash and cash equivalents at end of the period 49,1 16,4 49,1 2,8

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

13  |  Balco Group Interim Report  1 January - 31 March 2024 
Key ratios 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2024 2023 2023/24 2023
Net sales 326,4 325,7 1 215,7 1 214,9
Order intake 352,0 245,2 1 083,8 977,0
Order backlog 1 392,2 1 240,7 1 392,2 1 073,6
Gross profit 67,4 69,1 243,6 245,4
Adjusted Gross Profit 67,4 72,9 247,4 252,9
EBITDA 24,0 33,3 105,5 114,7
Adjusted EBITDA 27,3 38,5 116,2 127,4
Operating profit (EBITA) 13,0 23,2 67,0 77,1
Adjusted operating profit (EBITA) 16,3 28,4 77,7 89,8
Operating profit (EBIT) 11,0 21,6 59,7 70,4
Adjusted operating profit (EBIT) 14,2 26,9 70,4 83,0
Gross profit margin, % 20,6 21,2 20,0 20,2
Adjusted gross margin, % 20,6 22,4 20,4 20,8
EBITDA margin, % 7,4 10,2 8,7 9,4
Adjusted EBITDA margin, % 8,4 11,8 9,6 10,5
Operating profit margin (EBITA), % 4,0 7,1 6,2 7,9
Adjusted operating profit margin (EBITA), % 5,0 8,7 5,6 8,4
Operating profit margin (EBIT), % 3,4 6,6 4,9 5,8
Adjusted operating profit margin (EBIT), % 4,4 8,2 5,8 6,8
Operating cash flow 18,0 -10,8 32,3 3,6
Operating cash conversion, % 65,8 -28,0 27,8 2,8
Capital employed, average 1 080,6 883,0 1 052,4 911,2
Capital employed, excl. goodwill, average 581,5 411,5 553,3 439,7
Equity, average 771,4 737,3 770,7 738,0
Interest-bearing net debt incl leasing debt 376,7 186,6 376,7 241,6
Interest-bearing net debt excl leasing debt 310,1 107,8 310,1 171,4
Interest-bearing net debt incl. leasing/Adjusted EBITDA 12 months, times 3,2 1,2 3,2 1,9
Interest-bearing net debt excl. leasing/EBITDA (12 months), times 3,2 0,9 3,2 1,6
Return on capital employed, %, (12 months) 6,5 11,9 6,7 9,1
Return on capital employed, excl. goodwill, %, (12 months) 12,1 25,6 12,7 18,9
Return on invested capital, %, (12 months) 4,6 9,6 4,6 6,3
Equity/assets ratio, % 46,9 56,8 51,2 57,6
Number of full-time employees on the closing date 673 521 673 490
Average number of shares before dilution, thousands 22 766 21 909 22 766 21 909
Average number of shares after dilution, thousands 22 766 21 909 22 766 21 909
Equity per share, SEK 33,88 33,65 33,85 33,68

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

14  |  Balco Group Interim Report  1 January - 31 March 2024 
Parent Company, income statement in summary 
 
Parent company, balance sheet in summary 
 
 
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2024 2023 2023/24 2023
Net sales 5,9 6,1 26,2 26,4
Administrative expenses -4,6 -5,0 -24,2 -24,7
Operating profit 1,3 1,1 1,9 1,7
Interest income  and similar profit/loss items 2,8 1,0 8,7 6,9
Interest expenses  and similar profit/loss items -9,1 -4,6 -23,9 -19,4
Dividend / result from group company - 12,7 25,2 37,9
Profit/loss after financial items -4,9 10,1 12,0 27,0
Appropriations - - 47,9 47,9
Tax 1,0 0,5 -7,3 -7,7
Net profit/loss for the period -3,9 10,6 52,6 67,1
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 2024 2023 2023
ASSETS
Non-current assets
Financial assets
Shares in group companies 1 639,9 745,3 1 458,2
Other non-current assets 3,4 - 3,4
Total non-current assets 1 643,3 745,3 1 461,6
Current assets
Receivables from group companies 52,8 132,9 89,7
Other current receivables 9,6 30,1 6,2
Cash and cash equivalents 29,4 - -
Total current assets 91,8 163,0 95,8
TOTAL ASSETS 1 735,2 908,3 1 557,4
EQUITY AND LIABILITIES
Equity
Restricted equity 138,1 131,5 131,5
Non-restricted equity 415,1 351,9 375,5
Total equity 553,2 483,3 507,0
LIABILITIES
Non-current liabilities
Liabilities to credit institutions 276,8 99,1 150,0
Other non-current liabilities 32,2 17,7 10,9
Total non-current liabilities 309,0 116,8 160,9
Current liabilities
Liabilities to credit institutions - - 3,4
Liabilities to group companies 843,6 293,6 874,7
Other current liabilities 29,4 14,6 11,4
Total current liabilities 873,0 308,1 889,6
TOTAL EQUITY AND LIABILITIES 1 735,2 908,3 1 557,4

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

15  |  Balco Group Interim Report  1 January - 31 March 2024 
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 accordance 
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 2023 Annual Report, which was prepared in accord-
ance 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 financial report. 
Note 2 Financial instruments 
The financial instruments measured at fair value are forward exchange contracts. Financial assets at fair value amounted to 0.0 MSEK 
(0.5) at the end of the period while financial liabilities at fair value amounted to 0.0 MSEK (1.3). The fair values of financial instruments 
are determined using valuation techniques. Market information is used as far as possible when available, while company-specific infor-
mation is used as little as possible. If all key inputs required for the fair value measurement of an instrument are observable, the in-
strument is categorized in level 2. Reported value of trade receivables, other receivables, 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 conjunction with the construction of apartment buildings and balcony solutio ns in 
the maritime area. The segment is driven mainly by the rate of new residential construction.  
 
 
 
Note 4 Reconciliation with IFRS financial statements  
Balco’s financial statements include alternative performance measures, which complement the measures that are defined or specified 
in applicable rules for financial reporting. Alternative performance measures are presented since, as in their context, they provide 
clearer or more in-depth information than the measures defined in applicable rules for financial reporting. The alternative perfor-
mance measures are derived from the Company’s consolidated financial reporting and are not measured in accordance with IFRS. 
 
Jan-Mar
MSEK 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
Net sales – External revenue 222,0 299,2 104,4 26,4 - - - - 326,4 325,7
Net sales – Internal revenue - - - - 5,9 6,1 -5,9 -6,1 - -
Total sales 222,0 299,2 104,4 26,4 5,9 6,1 -5,9 -6,1 326,4 325,7
Operating profit (EBIT) 8,7 19,6 5,6 1,3 -3,3 0,8 - - 11,0 21,6
Depreciation included with 11,1 11,1 2,0 0,6 - - - - 13,1 11,6
of which amortization 2,1 1,5 - 0,1 - - - - 2,1 1,6
Items affecting comparison - 4,6 - - 3,3 0,6 - - 3,3 5,2
Adjusted operating profit (EBITA) 10,7 25,7 5,6 1,4 - 1,4 - - 16,3 28,4
Adjusted operating margin 4,8% 8,6% 5,3% 5,2% 5,0% 8,7%
Operating profit (EBIT) 8,7 19,6 5,6 1,3 -3,3 0,8 - - 11,0 21,6
Finance income - - - - 2,0 0,9 - - 2,0 0,9
Finance cost - - - - -10,8 -4,2 - - -10,8 -4,2
Profit before tax 8,7 19,6 5,6 1,3 -12,0 -2,5 - - 2,2 18,4
TotalRenovation New Build Group-wide Eliminations

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

16  |  Balco Group Interim Report  1 January - 31 March 2024 
 
 
 
31-mar 31-mar 31-dec
MSEK 2024 2023 2023
Interest-bearing net debt incl leasing debt
Non-current interest-bearing liabilities 392,9 184,0 225,4
Current interest-bearing liabilities 32,9 19,0 19,0
Cash and cash equivalents -49,1 -16,4 -2,8
Interest-bearing net debt incl leasing debt 376,7 186,6 241,6
Adjusted EBITDA (R12) 116,2 149,4 127,4
Interest-bearing net debt/EBITDA (R12), times 3,2 1,2 1,9
Interest-bearing net debt excl leasing debt
Interest-bearing net debt incl leasing debt 376,7 186,6 241,6
Leasing liabilities non-current -49,4 -60,1 -51,2
Leasing liabilities current -17,3 -18,7 -19,0
Interest-bearing net debt excl leasing debt 310,1 107,8 171,4
Interest-bearing net debt/EBITDA excl leasing (R12), times
Adjusted EBITDA (R12) 116,2 149,4 127,4
Leasing depreciations (R12) -19,1 -26,2 -20,2
Adjusted EBITDA (R12) excl leasing depreciations 97,1 123,3 107,1
Interest-bearing net debt/EBITDA excl leasing (R12), times 3,2 0,9 1,6
Return on capital employed
Equity 796,7 744,8 746,1
Interest-bearing net debt 376,7 186,6 241,6
Average capital employed 1 052,4 916,5 911,2
Adjusted operating profit (EBIT), (R12) 70,4 105,4 83,0
Return on capital employed, % 6,7 11,5 9,1
Equity/assets ratio
Equity attributable to owners of the parent company 796,7 744,8 746,1
Total assets 1 697,8 1 310,5 1 267,2
Equity/assets ratio, % 46,9 56,8 58,9

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

17  |  Balco Group Interim Report  1 January - 31 March 2024 
 
 
 
  
Jan-Mar Jan-Mar Apr-Mar Jan-Dec
MSEK 2024 2023 2023/24 2023
Adjusted operating profit (EBIT)
Operating profit (EBIT 11,0 21,6 59,7 70,4
Items affecting comparison
Re-structuring costs 0,1 4,6 6,3 10,7
Acquisition costs 3,1 0,6 4,4 1,9
Adjusted operating profit (EBIT) 14,2 26,9 70,4 83,0
Operating profit (EBITA)
Operating profit (EBIT) 11,0 21,6 59,7 70,4
Amortization 2,1 1,6 7,3 6,8
Operating profit (EBITA) 13,0 23,2 67,0 77,1
Adjusted operating profit (EBITA)
Adjusted operating profit (EBIT) 14,2 26,9 70,4 83,0
Amortization 2,1 1,6 7,3 6,8
Adjusted operating profit (EBITA) 16,3 28,4 77,7 89,8
EBITDA
Operating profit (EBIT) 11,0 21,6 59,7 70,4
Depreciation and amortization 13,1 11,6 45,7 44,3
EBITDA 24,0 33,3 105,5 114,7
Adjusted EBITDA
Adjusted operating profit (EBIT) 14,2 26,9 70,4 83,0
Depreciation and amortization 13,1 11,6 45,7 44,3
Adjusted EBITDA 27,3 38,5 116,2 127,4
Investments, excluding expansion investments
Investments in intangible fixed assets -0,9 -2,2 -4,4 -5,6
Investments in tangible fixed assets -1,4 -2,1 -7,0 -7,7
of which expansion investments 1,9 2,6 6,3 7,0
Investments, excluding expansion investments -0,4 -1,6 -5,2 -6,4
Operating cash flow
Adjusted EBITDA 27,3 38,5 116,2 127,4
Changes in working capital -8,9 -47,7 -78,7 -117,4
Investments, excluding expansion investments -0,4 -1,6 -5,2 -6,4
Operating cash flow 18,0 -10,8 32,3 3,6
Net Sales excluding acquisitions
Net Sales 326,4 325,7 1 215,7 1 214,9
Acquired net sales -100,9 -9,5 -156,0 -64,6
Net Sales excluding acquisitions 225,6 316,2 1 059,7 1 150,3

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

18  |  Balco Group Interim Report  1 January - 31 March 2024 
Note 5 Acquisition 
On January 22, Balco Group entered into an agreement on and completed the acquisition of all shares in Riikku Group Oy, one of 
Finland's leading companies in balcony glazing. The acquisition is consolidated from 1 January 2024 and is expected to contribute 
positively to earnings per share during the full year 2024.Through the acquisition, Balco Group establishes a strong position in the 
Finnish balcony market and strengthens the range in the new construction segment. The acquisition also strengthens Balco Group's 
market position in the Nordics, in line with the group's long-term strategy. 
Riikku Group Oy was founded in 2005 and is one of Finland's two largest balcony glazing companies. The company mainly works with 
new build, but also sells in the renovation segment. Riikku's head office is in Alavus, Finland and has sales offices in several Finnish 
cities as well as subsidiaries in Sweden, Norway and Finland. The Riikku Group had a turnover of approximately 40 MEUR in 2023 with 
an operating margin that was slightly lower than Balco Group's. Riikku has a modern and well-invested production facility of approxi-
mately 7,500 m2 in Alavus. Riikku and its subsidiaries will continue to be run by the current management with Joakim Petersen-Dy-
ggve as Managing Director.  
The agreed purchase price amounts to 15 MEUR on a cash and debt-free basis. 3 MEUR will be paid with newly issued shares to Riik-
ku's former owners. The remaining 12 MEUR is financed with own cash and was paid half upon entry and half over the next four years 
with a quarter per year. The acquisition calculation is preliminary. 
 
 
 
On March 6, Balco Group entered into an agreement and completed the acquisition of sixty percent of the shares in Suomen 
ohutlevyasennus Oy, a Finnish general contracting and facade company. The acquisition is consolidated from 1 March 2024 and is 
expected to contribute positively to earnings per share during the full year 2024. 
Through the acquisition, Balco Group further strengthens its position on the Finnish market and expands the offer in the renovation 
segment as well as in turnkey and green transformation. Balco Group's latest acquisition Riikku is a major supplier to Suomen Ohutle-
vyasennus and together the two acquisitions lead to the group establishing itself as a leading player in Finland. 
Suomen ohutlevyasennus Oy was founded in 1984 and is a turnkey company with facade renovation as an area of expertise. The pro-
jects mainly include facade renovation with additional insulation and often installation of balcony glazing. Over 90 percent of the 
company's turnover comes from the renovation segment, and the customers are tenant-owned associations and construction compa-
nies. The company is located in Turku, Finland and had a turnover of just over 11 MEUR in 2023 with a higher operating margin than 
Balco Group's for several years. Suomen ohutlevyasennus will continue to be run by co-owners Jukka Stam and Mikko Jokinen. 
The agreed purchase price amounts to 5.4 MEUR for 60 percent of the shares on a cash and debt-free basis. 1.4 MEUR is paid with 
newly issued shares to Suomen ohutlevyasennus’ previous owners. The remaining EUR 4 million is financed with own cash and the 
access was paid. The acquisition calculation is preliminary. 
 
  
The purchase price comprises the following components (MSEK)
Cash payment 78,5
Present value calculated future payments 39,2
Aquired net assets -117,7
Goodwill -
The following assets and liabilities were included in the acquisition (M
Cash and cash equivalents 2,2
Tangible fixed assets 64,3
Intangible assets 104,6
Inventories 15,9
Receivables 84,3
Liabilities -133,8
Deferred tax liabilities -19,8
Acquired net assets 117,7
The purchase price comprises the following components (MSEK)
Cash payment 60,9
Aquired net assets -34,8
Goodwill 26,1
The following assets and liabilities were included in the acquisition (M
Cash and cash equivalents 4,3
Tangible fixed assets 9,8
Intangible assets 44,3
Receivables 11,1
Liabilities -25,4
Deferred tax liabilities -9,3
Acquired net assets 34,8

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

19  |  Balco Group Interim Report  1 January - 31 March 2024 
Alternative performance measures 
This interim report contains references to a number of performance measures. Some of these measures are defined in IFRS, while oth-
ers are alternative measures and are not reported in accordance with applicable financial reporting frameworks or other legislation. 
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 generated 
on the shareholders’ capital that is invested in the 
company. 
 
Return on capital employed Adjusted EBITA as a percentage of average cap-
ital employed for the period. Average calculated 
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 re-
lates to the capital efficiency of the company.
 
Return on capital employed exclud-
ing goodwill 
Adjusted EBITA as a percentage of average cap-
ital employed for the period excluding goodwill. 
Average calculated as the average of the open-
ing balance and the closing balance for the pe-
riod. 
Balco believes that return on capital employed ex-
cluding goodwill together with return on capital 
employed shows a complete picture of Balco's capi-
tal 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 effective-
ness 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 meas-
ure 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 2024 
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 comparing 
cash flow with operating profit. 
Operating cash flow  Adjusted EBITDA increased/decreased with 
changes in net working capital less investments, 
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 cho-
sen 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 measure 
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.
 
673 employees 
 
Balco Group was established in 1987 and is a group 
consisting of producing and selling companies. The 
group is the market leader in the Nordics and operates 
in several markets in northern Europe. The head office 
is in Växjö, and the group has approximately 700 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 sales process.  
7 markets 
1,216 MSEK net sales R12 
35,000 sqm total production area