===== SIDA 1 ===== Third quarter 2023 Stable results and improved cash flow Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Net turnover 8,708 7,291 28,406 24,920 38,831 35,345 Operational earnings 1) 335 334 1,209 1,332 1,783 1,906 Operational margin, % 3.8 4.6 4.3 5.3 4.6 5.4 Operating profit 288 386 1,062 1,591 1,573 2,102 Operating margin, % 3.3 5.3 3.7 6.4 4.1 5.9 Profit before tax 216 359 866 1,532 1,336 2,002 Net profit for the period 169 285 682 1,264 1,040 1,622 Earnings per share, SEK 2) 1.83 3.14 7.41 13.54 11.30 17.43 1) For reconciliation of operational earnings with operating profit, see Note 3. 2) The number of shares used in the calculation is shown in the Consolidated Statement of Income and Other Comprehensive Income. Third quarter 2023 • Net turnover amounted to SEK 8,708 M (7 ,291), an increase of 19 per cent. • Operational earnings amounted to SEK 335 M (334). • Sweden and Western Europe reported higher operational earnings while Norway reported SEK 53 M lower operational earnings compared to the previous year. • Operating profit amounted to SEK 288 M (386). The previous year's operating profit included a profit from sale of operations of SEK 92 M. • Net profit for the period amounted to SEK 169 M (285). The previous year's net profit included a profit after tax from sale of operations of SEK 80 M. Earnings per share amounted to SEK 1.83 (3.14). • Operating cash flow amounted to SEK 269 M (–133). Nine months 2023 • Net turnover amounted to SEK 28,406 M (24,920), an increase of 14 per cent. • Operational earnings amounted to SEK 1,209 M (1,332). • Sweden and Western Europe reported higher operational earnings while Norway reported SEK 228 M lower operational earnings compared to the previous year. • Operating profit amounted to SEK 1,062 M (1,591). The previous year’s operating profit included a profit from sale of operations of SEK 369 M. • Net profit for the period amounted to SEK 682 M (1,264). The previous year’s net profit included a profit after tax from sale of operations of SEK 346 M. Earnings per share amounted to SEK 7.41 (13.54). • Operating cash flow amounted to SEK 480 M (461). BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 1 (30) ===== SIDA 2 ===== THE MANAGING DIRECTOR’S COMMENTS Stable operational earnings and improved cash flow Third quarter Our operational earnings for the third quarter were on a par with the previous year and amounted to SEK 335 M, with a margin of 3.8 per cent. The result for the Service Business amounted to SEK 205 M, which was higher than the previ- ous year. Operating cash flow improved and amounted to SEK 269 M, compared to SEK –133 M the previous year. Sweden and Western Europe reported higher results compared to the previous year, while Norway reported a result of SEK 23 M, compared to SEK 76 M the previous year. The lower result was attributable to the Car Busi- ness where the market situation in Norway was challeng- ing for many players. The backlog for new cars in Sweden and Western Europe remained high from a historical perspective. Good demand in the Service Business Demand for servicing was good during the third quarter and was not affected by the economic uncertainty. Our customers continue to look after their cars also in harder economic times, and turnover increased organically by 11 per cent. For 2022, the Service Business represented 22 per cent of our turnover and 58 per cent of our operational earnings. Stable order intake from business customers The order intake from fleet customers continued at a stable level, while orders from private persons remained cautious. The order intake remained weak in Norway and Sweden but was stable in Western Europe. In the third quarter, the underlying order intake for new cars was 23 per cent lower than in the previous year. Demand for used cars remained good, and we de- livered underlying 3 per cent more used cars during the third quarter compared to the previous year. New businesses join the Bilia family We are extending our collaboration with Mercedes-Benz, and during the quarter we reached an agreement to ac- quire the operation of Bilcentergruppen Sörmland AB. The business operates in a full-service facility in Nyköping with sales of new and used Mercedes-Benz cars and transport vehicles, along with related service operations. During the quarter, we established sales of new cars for XPENG in Bergen, Norway, and are now preparing to estab- lish also in Gothenburg and Malmö, Sweden. Sustainable total solutions As one of the best service companies in the industry, we offer a customer experience of sustainable, attractive, innovative total solutions, while maintaining good growth and profitability. One of our sustainability goals is to increase the per- centage of used spare parts from car dismantling at our repair workshops, thus increasing utilisation of the vehi- cle throughout its life cycle. As society’s focus on circular- ity increases, there will be greater demand for used spare parts. During the quarter, we co-located a car disman- tling and repair operation south west of Oslo, Norway so that we can better utilise used spare parts when repair- ing cars. The repair workshops are key components in our circular business model. Per Avander Managing Director and CEO “Stable result and good demand in the Service Business” Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 280 402 482 334 335 Operational earnings third quarter, SEK M BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 2 (30) ===== SIDA 3 ===== Group results Net turnover and earnings Third quarter 2023 Net turnover amounted to SEK 8,708 M (7 ,291). Adjusted for acquired and divested operations and for exchange rate fluctuations, net turnover increased by 11 per cent, mainly attributable to increased number of delivered cars. Exchange rate fluctuations had no significant impact on net turnover for the period compared to the previous year. Operating profit amounted to SEK 288 M (386). The operating profit for the third quarter of 2022 included a profit from sale of operations of SEK 92 M. Operational earnings amounted to SEK 335 M (334), and the operational margin was 3.8 per cent (4.6). Norway reported lower operational earnings attribut- able to the Car Business. Sweden and Western Europe reported higher operational earnings compared to the previous year. The Service Business reported a result of SEK 205 M, compared to SEK 192 M the previous year, despite one less working day. The Car Business reported a result of SEK 151 M, compared to SEK 155 M the previous year. The lower result was attributable to Norway. The Fuel Business reported a result of SEK 6 M which was higher than the previous year. The operation in Sweden reported a result of SEK 284 M (240). The margin was 5.0 per cent (5.5). The operation in Norway reported a result of SEK 23 M (76). The margin was 1.1 per cent (3.5). The operation in Western Europe reported a result of SEK 55 M (29). The margin was 5.2 per cent (3.9). The higher result for Swe- den was attributable to the Car Business and mainly to used cars. The lower result for Norway was attributable to the Car Business. For Western Europe, the higher result was mainly attributable to the Car Business. Net financial items amounted to SEK –71 M (–27). The higher net financial items is explained by higher interest costs. Tax amounted to SEK –48 M (–74), and the effective tax rate was 22 per cent (21). Profit for the period amounted to SEK 169 M (285). The previous year's net profit included a profit after tax from sale of operations of SEK 80 M. Earnings per share amounted to SEK 1.83 (3.14). Exchange rate fluctuations did not have a material impact on net profit for the period compared to the previous year. The number of employees decreased by 30 during the quarter and totalled 5,171. The operating result for the Parent Company during the quarter amounted to SEK –39 M (–11). Compared to the previous year, the result has been affected by central marketing costs and the revaluation of endowment in- surance for pensions, which last year improved the result. Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Net turnover SEK M Net turnover Net turnover SEK M, R/one.tf/two.tf /zero.tf /two.tf,/zero.tf/zero.tf/zero.tf /four.tf,/zero.tf/zero.tf/zero.tf /six.tf,/zero.tf/zero.tf/zero.tf /eight.tf,/zero.tf/zero.tf/zero.tf /one.tf/zero.tf,/zero.tf/zero.tf/zero.tf /one.tf/two.tf,/zero.tf/zero.tf/zero.tf /two.tf/eight.tf,/zero.tf/zero.tf/zero.tf /three.tf/zero.tf,/zero.tf/zero.tf/zero.tf /three.tf/two.tf,/zero.tf/zero.tf/zero.tf /three.tf/four.tf,/zero.tf/zero.tf/zero.tf /three.tf/six.tf,/zero.tf/zero.tf/zero.tf /three.tf/eight.tf,/zero.tf/zero.tf/zero.tf /four.tf/zero.tf,/zero.tf/zero.tf/zero.tf /zero.tf /one.tf/two.tf/zero.tf /two.tf/four.tf/zero.tf /three.tf/six.tf/zero.tf /four.tf/eight.tf/zero.tf /six.tf/zero.tf/zero.tf Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Operational earnings SEK M Operational earnings and margin Margin %, R/one.tf/two.tf /two.tf./zero.tf /three.tf./zero.tf /four.tf./zero.tf /five.tf./zero.tf /six.tf./zero.tf /seven.tf./zero.tf THE GROUP Bilia's financial targets • Total yearly growth higher than 5 per cent during a business cycle. • Operating margin of 5 per cent during a business cycle. • Net debt in relation to EBITDA, excluding IFRS 16, over time max 2.0 times. • Dividend share of at least 50 per cent of earnings per share. BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 3 (30) ===== SIDA 4 ===== Nine months 2023 Net turnover amounted to SEK 28,406 M (24,920). Adjusted for acquired and divested operations and for exchange rate fluctuations, net turnover increased by 11 per cent. Exchange rate fluctuations had no signifi- cant impact on net turnover for the period compared to the previous year. Operating profit amounted to SEK 1,062 M (1,591). The operating profit for the first nine months of 2022 included a profit from sale of operations in Sweden and Norway of SEK 369 M. Operational earnings amounted to SEK 1,209 M (1,332), and the operational margin was 4.3 per cent (5.3). Norway reported lower operational earnings at- tributable mainly to the Car Business while Sweden and Western Europe reported higher operational earnings compared to the previous year. Adjusted for divested operations, the Group’s operational earnings was slightly below the previous year. The Service Business reported a result of SEK 777 M, compared to SEK 793 M the previous year. Adjusted for divested operations in Sweden and Norway, the Service Business’s result was higher than the previous year. The Car Business reported a result of SEK 508 M, compared to SEK 583 M the previous year. The lower result was attributable to sales of used cars. The Fuel Business reported a result of SEK 18 M which was unchanged com- pared to the previous year. The operation in Sweden reported a result of SEK 1,002 M (925). The margin was 5.5 per cent (6.2). The operation in Norway reported a result of SEK 139 M (367). The margin was 1.9 per cent (4.8). The operation in Western Europe reported a result of SEK 162 M (102). The margin was 5.3 per cent (4.6). The higher result for Sweden was attributable to both the Service Business and the Car Business. The lower result for Norway was mainly attributable to the Car Business. For Western Europe, the higher result was mainly attributable to the Car Business. Net financial items amounted to SEK –197 M (–59). The higher net financial items is explained by higher interest costs and that the net financial items for the previous year was positively affected by approximately SEK 30 M from a one-off item from shares in associated companies. Tax amounted to SEK –185 M (–268), and the effective tax rate was 21 per cent (17). Adjusted for profit from the sale of operations in the previous year, the effective tax rate for previous year amounted to 20 per cent. Net profit for the period amounted to SEK 682 M (1,264). The previous year’s net profit included a profit after tax from sale of operations of SEK 346 M. Earnings per share amounted to SEK 7 .41 (13.54). Exchange rate fluctuations did not have a material impact on net profit for the period compared to the previous year. The number of employees increased by 61 compared to December 2022 and totalled 5,171. The operating result for the Parent Company during the first nine months amounted to SEK –110 M (–63). THE GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 4 (30) ===== SIDA 5 ===== Net turnover by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Sweden 5,649 4,360 18,100 14,966 24,036 20,902 Norway 2,005 2,196 7,224 7,721 10,871 11,368 Western Europe 1,047 728 3,059 2,208 3,897 3,046 Parent Company, other 7 7 23 25 27 29 Total 8,708 7,291 28,406 24,920 38,831 35,345 Operational earnings by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Sweden 284 240 1,002 925 1,381 1,304 Norway 23 76 139 367 319 547 Western Europe 55 29 162 102 214 154 Parent Company, other –27 –11 –94 –62 –131 –99 Total 335 334 1,209 1,332 1,783 1,906 Operational margin by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022Per cent 2023 2022 2023 2022 Sweden 5.0 5.5 5.5 6.2 5.7 6.2 Norway 1.1 3.5 1.9 4.8 2.9 4.8 Western Europe 5.2 3.9 5.3 4.6 5.5 5.0 Total 3.8 4.6 4.3 5.3 4.6 5.4 THE GROUP A better experience At Bilia we strive for continuous development, to be a little better each day, whatever our title or position. Working in a goal-conscious way founded on our vision, core values and customer promise creates a positive spiral, enabling us to exceed expectations and provide a better experience for cus- tomers and colleagues alike. Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 223 268 300 240 284 Operational earnings third quarter, SEK M Sweden Norway Western Europe Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 48 123 171 76 23Norway Q3 19 Q3 20 Q3 21 Q3 22 Q3 23 16 24 20 29 55 BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 5 (30) ===== SIDA 6 ===== Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Operating cash flow SEK M, R/one.tf/two.tf Operating cash flow –/five.tf/zero.tf/zero.tf /zero.tf /five.tf/zero.tf/zero.tf /one.tf,/zero.tf/zero.tf/zero.tf /one.tf,/five.tf/zero.tf/zero.tf /two.tf,/zero.tf/zero.tf/zero.tf /two.tf,/five.tf/zero.tf/zero.tf Operating cash flow Operating cash flow for the third quarter amounted to SEK 269 M (–133). After acquisitions and divestment of operations and changes in financial assets, cash flow for the quarter amounted to SEK 279 M (81). Operating cash flow for the first nine months amounted to SEK 480 M (461). After acquisitions and divestments of operations and changes in financial assets, the cash flow for the quarter amounted to SEK 486 M (1,106). The previous year’s cash flow had been positively affected by a net SEK 644 M attributable to acquisitions and divestments of operations. Financial position The balance sheet total decreased by SEK 621 M during the year and amounted to SEK 19,380 M. The decrease was mainly attributable to inventory and trade receiva- bles. Equity decreased by SEK 237 M during the period, amounting to SEK 4,650 M. During the second quarter, a dividend of SEK 809 M was decided to the shareholders, of which SEK 404 M has been paid out. The total holding of own shares as of 30 September 2023 was 4,315,709 shares. The equity/assets ratio amounted to 24 per cent (28). Net debt increased by SEK 688 M during the year and amounted to SEK 6,454 M. Excluding lease liabilities at- tributable to IFRS 16, net debt amounted to SEK 2,269 M, an increase of SEK 483 M since December 2022. The ratio of net debt to EBITDA, excluding IFRS 16, amounted to 1.1 times compared with 0.8 times at the end of 2022. At the end of the quarter, SEK 844 M of Bilia’s credit with the banks (Nordea and DNB) was utilised. The credit limit with Nordea and DNB totals SEK 2,300 M. During June, outstanding bond loans of SEK 800 M with regular maturity in October 2023 were renewed with a maturity of 5 years. Investments excluding right-of-use assets Acquisitions of non-current assets during the quarter amounted to SEK 155 M (57) excluding lease vehicles and SEK 434 M (305) including lease vehicles. By geograph- ical market, the investments amounted to SEK 111  M (244) in Sweden, SEK 273 M (7) in Norway, SEK 6 M (35) in Western Europe and SEK 44 M (19) for the Parent Compa- ny and other central operations. Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Net debt SEK M Net debt and net debt/EBITDA, excl. IFRS /one.tf/six.tf Net debt/EBITDA times, R/one.tf/two.tf /zero.tf /five.tf/zero.tf/zero.tf /one.tf,/zero.tf/zero.tf/zero.tf /one.tf,/five.tf/zero.tf/zero.tf /two.tf,/zero.tf/zero.tf/zero.tf /two.tf,/five.tf/zero.tf/zero.tf /zero.tf./zero.tf /zero.tf./five.tf /one.tf./zero.tf /one.tf./five.tf /two.tf./zero.tf /two.tf./five.tf Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Investments SEK M, R/one.tf/two.tf Investments in non-current assets, excl. IFRS /one.tf/six.tf in % of net turnover, R/one.tf/two.tf /zero.tf /five.tf/zero.tf/zero.tf /one.tf,/zero.tf/zero.tf/zero.tf /one.tf,/five.tf/zero.tf/zero.tf /two.tf,/zero.tf/zero.tf/zero.tf /zero.tf./zero.tf /two.tf./zero.tf /four.tf./zero.tf /six.tf./zero.tf /eight.tf./zero.tf THE GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 6 (30) ===== SIDA 7 ===== Events during the third quarter • On 18 September Bilia reached an agreement to acquire Bilcentergruppen Sörmland AB. The opera- tion is conducted in a strategically located facility in Nyköping. Bilcentergruppen Sörmland is a modern full-service facility for Mercedes-Benz cars and trans- port vehicles with associated sales of used cars and service operations. During 2022, Bilcentergruppen Sörmland’s turnover amounted to approximately SEK 100 M. The number of employees were 24 at the end of 2022. The acquisition is expected to be effectuated on 1 November 2023. Events during the first six months • On 23 January Bilia signed an agreement with Great Wall Motor to be an importer and dealer in Norway. Great Wall Motor is a listed company in Hong Kong which in 2021 has sold 1.3 million vehicles and is now establishing in Europe. • On 5 April Bilia announced that the collaboration with Nissan Sweden is expanding, sales and service of Nissan cars will be offered at several facilities in Sweden. From January 1, 2024, Nissan Sweden will Notable events change to an agency model. The new distribution model will be implemented with Bilia as an agent for the brand. • On 16 June Bilia announced that a repurchase had taken place of SEK 768 M of the total outstanding un- secured bond loan of SEK 800 M with regular maturity in October 2023. The repurchases took place at a price of 100.5 per cent. At the same time, a new senior unsecured bond loan was issued for an amount of SEK  800  M. The new bond loan has a variable interest rate of 3m STIBOR plus 275 bps and has a final maturi- ty in June 2028. Events after the balance sheet date • There are no significant events after the balance sheet date. THE GROUP Further information about the above mentioned events along with other press information is available at bilia.com. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Car purchase Financing, insurance, the Bilia-card, service subscrip- tions, tyre hotels, paint shops, accessory and tyre and wheel sales. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Store Accessories, spare parts and e-commerce. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Stations Fuels and car washes. Tyre centres Tyre hotels, wheel change, tyre and wheel sales and workshop services. Rim repair Renovation of rims. We offer services for everything related to car ownership during the car’s entire life cycle, from the purchase of a new car to recycling parts from a dismantled car. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Service Original service, personal service technicians and repairs. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Car glass Glass treatment, glass repair and windscreen replacement. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Car care Reconditioning and AC-cleaning. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Damage Roadside assistance, body shop, paint shop and dent removal. Bilia är en One Stop Shop, med ett brett utbud av produkter och tjänster. Genom bilköpet knyter vi kunderna till oss. Våra anläggningar och digitala kanaler är de centrala kontaktytorna. Kundservice T elefon och online. Butik Tillbehör, reservdelar och e-handel. Glascenter Glasbehandling, glasreparation och vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning och verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker och reparationer Stationer Drivmedel och biltvätt. Bilvård Rekonditionering och AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad, buckelborttagning och bildemontering. Hyrbilar Uthyrning och Flexlease Rental cars Rentals and Flexlease. Kundservice T elefon & online. Reuse Bildemontering & bildelar 7 BIL I A Å R S R E D O VIS NING 2 0 1 9 A f f ä r s m odell o c h s t r a t e g i Butik Tillbehör, reservdelar & e-handel. Glascenter Glasbehandling, glas- reparation & vindrutebyten. Däckcenter Däckhotell, däckbyte, däck- försäljning & verkstadstjänster. Bilköp Finansiering, försäkring, biliakort, serviceabonnemang, däckhotell, lackbehandling samt tillbehörs- & däckförsäljning. Servicecenter Originalservice, personlig servicetekniker & reparationer Stationer Drivmedel & biltvätt. Bilvård Rekonditionering & AC- rengöring Skadecenter Vägassistans, plåtverkstad, lackverkstad & buckelborttagning Hyrbilar Uthyrning & Flexlease Car dismantling Dismantling, reuse and sales of used car parts. BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 7 (30) ===== SIDA 8 ===== Higher results and good growth in the Service Business Third quarter 2023 • Turnover amounted to SEK 1,933 M (1,712), an increase of 13 per cent. • Operational earnings amounted to SEK 205 M (192). • The margin was 10.6 per cent (11.2). Nine months 2023 • Turnover amounted to SEK 6,380 M (5,801), an increase of 10 per cent. • Operational earnings amounted to SEK 777 M (793). • The margin was 12.2 per cent (13.7). Turnover and earnings Third quarter 2023 During the quarter, the turnover for the Service Business increased organically by 11 per cent. In Sweden and Norway, the organic growth during the quarter was 8 and 11 per cent respectively, while Western Europe’s organic growth was as much as 29 per cent. The organic growth is adjusted for acquired and divested operations, exchange rate fluctuations and the number of working days compared to last year. For the quarter, there was one less working day in all of the countries where we operate, compared to the previous year. Growth in the Service Business Third quarter Nine months Per cent Sweden Norway Western Europe Tota l Sweden Norway Western Europe Tota l Reported growth 12.9 6.7 40.5 12.9 12.1 –0.3 35.5 10.0 Underlying growth 6.9 9.1 26.9 9.0 7.2 10.6 27.6 9.5 Calendar effect 1.5 1.5 1.6 1.5 0.5 0.5 0.0 0.5 Organic growth 8.4 10.6 28.5 10.5 7.7 11.1 27.6 10.0 SERVICE BUSINESS At the end of the quarter, the number of service subscrip- tions for our customers amounted to 117,000 (106,000 at year-end 2022) compared with our long-term target of 130,000. The number of wheels stored on behalf of our customers amounted to 388,000 (393,000 at year-end 2022) compared with our long-term target of 1,000,000. Operational earnings amounted to SEK 205 M (192). In Sweden, operational earnings amounted to SEK 170 M (171). In Norway operational earnings amounted to SEK 23 M (15). In Western Europe, opera- tional earnings amounted to SEK 12 M (6). BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 8 (30) ===== SIDA 9 ===== Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Turnover SEK M Turnover Turnover SEK M, R/one.tf/two.tf /zero.tf /five.tf/zero.tf/zero.tf /one.tf,/zero.tf/zero.tf/zero.tf /one.tf,/five.tf/zero.tf/zero.tf /two.tf,/zero.tf/zero.tf/zero.tf /two.tf,/five.tf/zero.tf/zero.tf /six.tf,/five.tf/zero.tf/zero.tf /seven.tf,/zero.tf/zero.tf/zero.tf /seven.tf,/five.tf/zero.tf/zero.tf /eight.tf,/zero.tf/zero.tf/zero.tf /eight.tf,/five.tf/zero.tf/zero.tf /nine.tf,/zero.tf/zero.tf/zero.tf /zero.tf /one.tf/zero.tf/zero.tf /two.tf/zero.tf/zero.tf /three.tf/zero.tf/zero.tf /four.tf/zero.tf/zero.tf Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Operational earnings SEK M Operational earnings and margin Margin %, R/one.tf/two.tf /four.tf./zero.tf /eight.tf./zero.tf /one.tf/two.tf./zero.tf /one.tf/six.tf./zero.tf /two.tf/zero.tf./zero.tf SERVICE BUSINESS Turnover by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Sweden 1,276 1,131 4,324 3,858 5,829 5,363 Norway 507 474 1,607 1,611 2,250 2,254 Western Europe 150 107 449 332 592 476 Total 1,933 1,712 6,380 5,801 8,671 8,093 Operational earnings by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Sweden 170 171 616 594 900 879 Norway 23 15 108 160 177 227 Western Europe 12 6 53 39 69 55 Total 205 192 777 793 1,146 1,161 Margin by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022Per cent 2023 2022 2023 2022 Sweden 13.2 15.1 14.2 15.4 15.4 16.4 Norway 4.6 3.1 6.7 9.9 7.9 10.1 Western Europe 8.3 5.8 11.8 11.8 11.6 11.5 Total 10.6 11.2 12.2 13.7 13.2 14.3 BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 9 (30) ===== SIDA 10 ===== Good demand for used cars in the Car Business Third quarter 2023 • Turnover amounted to SEK 6,920 M (5,686), an increase of 22 per cent. • Operational earnings amounted to SEK 151 M (155). • The margin was 2.2 per cent (2.7). Nine months 2023 • Turnover amounted to SEK 22,665 M (19,475), an increase of 16 per cent. • Operational earnings amounted to SEK 508 M (583). • The margin was 2.2 per cent (3.0). New cars by geographic market Deliveries Order backlog Third quarter Nine months Number of 2023 2022 2023 2022 Oct. 22– Sept. 23 Full year 2022 30 Sept. 2023 30 Sept. 2022 Sweden 1) 6,608 4,822 22,164 19,372 30,821 28,029 12,201 17,428 Norway 2) 1,571 1,651 6,235 6,264 10,010 10,039 2,409 8,712 Western Europe 3) 1,368 1,026 4,474 3,068 5,653 4,247 3,248 3,289 Total 9,547 7,499 32,873 28,704 46,484 42,315 17,858 29,429 1) Acquired operations are included in deliveries during the quarter with 846, during the first nine months with 2,389 and with 1,014 in order backlog. Divested operations are included in deliveries in the previous year, during the quarter with 30, during the first nine months with 472 and with 130 in order backlog. 2) Acquired operations are included in deliveries during the quarter with 1, during the first nine months with 42 and with 89 in order backlog. Divested operations are included in deliveries in the previous year during the first nine months with 501. 3) Divested operations are included in deliveries in the previous year during the first nine months with 26. Turnover and earnings Third quarter 2023 The Car Business’s deliveries of new and used cars, adjusted for acquired and divested operations, were 16 and 3 per cent higher respectively compared with the previous year. The order intake of new cars for the Group was 23 per cent lower than the previous year adjusted for acquired and divested operations, primarily attributable to Nor- way and Sweden. The order intake from fleet customers was at a stable level, while orders from private persons remained cautious due to high interest rates and high inflation. The order intake in Norway was 37 per cent lower adjusted for acquired and divested operations, as demand during the third quarter continued to be adversely affected by changes to tax regulations and price reductions for certain car brands. The rate of order cancellations during the first half of the year slowed dur- ing the third quarter. In Western Europe, the order intake decreased by 5 per cent compared to the previous year. The order backlog amounted to 17 ,858 cars, which was a lower level than the previous year but at high level historically. For Sweden and Western Europe, the CAR BUSINESS order backlog remained at a high level from a historical perspective, while the order backlog for Norway was at a somewhat low level. BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 10 (30) ===== SIDA 11 ===== CAR BUSINESS Turnover during the quarter was, adjusted for acquired and divested operations and exchange rate fluctuations, 22 per cent higher than last year. The higher turnover was attributable to more delivered cars. Operational earnings from sales of used cars re- mained on a good level and amounted to SEK 99 M (112). The lower result compared to the previous year was attributable to a lower gross profit margin. Operational earnings from sales of new cars amount- ed to SEK 52 M (44). The higher result was explained by higher turnover compared to last year and was attributable to Sweden and Western Europe. Operational earnings for the Car Business in Sweden amounted to SEK 109 M (71). The higher result was main- ly attributable to sales of used cars that amounted to SEK 90 M (64). The number of used cars in stock was assessed to be at a good level at the end of the quarter. Deliveries of used cars by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022Number of 2023 2022 2023 2022 Sweden 1) 7,144 6,600 22,946 21,214 29,633 27,901 Norway 2) 3,103 2,735 9,745 8,995 12,578 11,828 Western Europe 3) 679 720 2,264 2,236 2,877 2,849 Total 10,926 10,055 34,955 32,445 45,088 42,578 1) Acquired operations are included in deliveries during the quarter with 690 and during the first nine months with 2,105. Divested operations are included in deliveries in the previous year during the quarter with 114 and during the first nine months with 802. 2) Acquired operations are included in deliveries during the first nine months with 195. Divested operations are included in deliveries in the previous year during the first nine months with 579. 3) Divested operations are included in deliveries in the previous year during the first nine months with 106. Operational earnings for the Car Business in Norway amounted to SEK 0 M (62). The lower result was primarily attributable to lower turnover, lower gross profit margin and higher relative costs. The result from sales of used cars amounted to SEK 6 M (41). The lower result was attributable to lower gross profit margin. The market situ- ation in Norway was challenging for many players during the third quarter. The number of used cars in stock was assessed to be at a good level at the end of the quarter. Operational earnings for the Car Business in Western Europe amounted to SEK 42 M (22). The higher result was mainly explained by higher turnover and higher gross profit margin for new cars. The result from sales of used cars amounted to SEK 3 M (7). Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Turnover SEK M Turnover Turnover SEK M, R/one.tf/two.tf /zero.tf /two.tf,/zero.tf/zero.tf/zero.tf /four.tf,/zero.tf/zero.tf/zero.tf /six.tf,/zero.tf/zero.tf/zero.tf /eight.tf,/zero.tf/zero.tf/zero.tf /one.tf/zero.tf,/zero.tf/zero.tf/zero.tf /two.tf/two.tf,/zero.tf/zero.tf/zero.tf /two.tf/four.tf,/zero.tf/zero.tf/zero.tf /two.tf/six.tf,/zero.tf/zero.tf/zero.tf /two.tf/eight.tf,/zero.tf/zero.tf/zero.tf /three.tf/zero.tf,/zero.tf/zero.tf/zero.tf /three.tf/two.tf,/zero.tf/zero.tf/zero.tf /zero.tf /five.tf/zero.tf /one.tf/zero.tf/zero.tf /one.tf/five.tf/zero.tf /two.tf/zero.tf/zero.tf /two.tf/five.tf/zero.tf /three.tf/zero.tf/zero.tf Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Operational earnings SEK M Operational earnings and margin Margin %, R/one.tf/two.tf /zero.tf./zero.tf /one.tf./zero.tf /two.tf./zero.tf /three.tf./zero.tf /four.tf./zero.tf /five.tf./zero.tf /six.tf./zero.tf BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 11 (30) ===== SIDA 12 ===== CAR BUSINESS Turnover by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Sweden 4,381 3,160 13,920 10,971 18,391 15,442 Norway 1,624 1,887 6,077 6,562 9,330 9,815 Western Europe 915 639 2,668 1,942 3,382 2,656 Total 6,920 5,686 22,665 19,475 31,103 27,913 Operational earnings by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Sweden 109 71 368 313 459 404 Norway 0 62 31 208 142 320 Western Europe 42 22 109 62 146 99 Total 151 155 508 583 747 823 Margin by geographic market Third quarter Nine months Oct. 22– Sept. 23 Full year 2022Per cent 2023 2022 2023 2022 Sweden 2.5 2.2 2.6 2.9 2.5 2.6 Norway 0.0 3.3 0.5 3.2 1.5 3.3 Western Europe 4.6 3.5 4.1 3.2 4.3 3.7 Total 2.2 2.7 2.2 3.0 2.4 2.9 BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 12 (30) ===== SIDA 13 ===== /zero.tf /one.tf/zero.tf/zero.tf /two.tf/zero.tf/zero.tf /three.tf/zero.tf/zero.tf /four.tf/zero.tf/zero.tf /five.tf/zero.tf/zero.tf Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Turnover SEK M Turnover Turnover SEK M, R/one.tf/two.tf /five.tf/zero.tf/zero.tf /seven.tf/five.tf/zero.tf /one.tf,/zero.tf/zero.tf/zero.tf /one.tf,/two.tf/five.tf/zero.tf /one.tf,/five.tf/zero.tf/zero.tf /one.tf,/seven.tf/five.tf/zero.tf –/five.tf /zero.tf /five.tf /one.tf/zero.tf /one.tf/five.tf /two.tf/zero.tf Q/three.tf /two.tf/three.tfQ/two.tf /two.tf/three.tfQ/one.tf /two.tf/three.tfQ/four.tf /two.tf/two.tfQ/three.tf /two.tf/two.tfQ/two.tf /two.tf/two.tfQ/one.tf /two.tf/two.tfQ/four.tf /two.tf/one.tf Operational earnings SEK M Operational earnings and margin Margin %, R/one.tf/two.tf –/one.tf./zero.tf /zero.tf./zero.tf /one.tf./zero.tf /two.tf./zero.tf /three.tf./zero.tf /four.tf./zero.tf Higher prices in the Fuel Business Third quarter 2023 • Turnover amounted to SEK 288 M (312), a decrease of 8 per cent. • Operational earnings amounted to SEK 6 M (–2). • The margin was 2.2 per cent (–0.6). Nine months 2023 • Turnover amounted to SEK 852 M (998), a decrease of 15 per cent. • Operational earnings amounted to SEK 18 M (18). • The margin was 2.2 per cent (1.8). Turnover and earnings Third quarter 2023 The Fuel Business encompasses fuel stations and car washes and is concentrated to Sweden. The result for the quarter amounted to SEK 6 M (–2). Fuel Business Third quarter Nine months Oct. 22– Sept. 23 Full year 20222023 2022 2023 2022 Turnover, SEK M 288 312 852 998 1,159 1,305 Operational earnings, SEK M 6 –2 18 18 22 21 Margin, per cent 2.2 –0.6 2.2 1.8 1.9 1.6 FUEL BUSINESS BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 13 (30) ===== SIDA 14 ===== The automotive and transport industry is facing major challenges, for instance with the transition to non fossil- dependent vehicles. In order to reduce the impact on the climate and achieve the sustainability goals, all of society needs to help out: politicians, companies, organisations and individuals. We all have a responsibility. As a company, we have a responsibility to reduce our own impact on the climate and the planet’s resources, and to help customers reduce theirs. Our circular business model Bilia is a full-service supplier during the car’s entire life cycle. The circular business model offers the customer help with everything from buying a new or used car, insur- ance, accessories, service, damage repair and rental car, to dismantling and recycling. The focus is on the custom- ers, and the customer’s needs and demand. The focus is on developing new services relating to reuse and renovation of spare parts. As part of this strate- gy, we have acquired car dismantling companies and rim repair companies. In addition to car dismantling and reuse of spare parts, dismantled parts are also recycled. Governance Bilia works according to the UN’s global Sustainable Development Goals, in the 2030 Agenda. We use an in- tegrated management system, certified under ISO 9001 and ISO 14001. Bilia should be a company for everybody, which is why work based on the company’s Code of Con- duct and policy on equality of treatment is important. Bilia’s Code of Conduct is published at bilia.com. Activities during the quarter related to Bilia's sustainability targets The sustainability targets are the basis for specific im- provement activities in this year's action plan. Examples of activities during the third quarter were: • Sustainable growth –ongoing efforts regarding a dou- ble materiality analysis as a step in implementing CSRD reporting requirements for 2024. • Circular economy –opening of Bilia’s co-located car dismantling and repair workshop in south west Oslo, Norway. The shared location makes it easier to use spare parts in the repair workshop • Human care – a pulse survey has been introduced in Sweden in order to gauge and develop our employees’ working climate throughout the year. • Climate care – ongoing efforts for a more comprehen- sive reporting of scope 3 emissions for the 2023 Sustain- ability Report. Sustainability THE GROUP Nine key SDGs in the 2030 Agenda Bilia has four focus areas for our sustainability work: Human care, Climate care, Sustainable growth and Circular business model. The focus areas are linked to the following of the UN's global Sustainable Development Goals in the 2030 Agenda. Sustainable growth Customer satisfaction to be 3 percentage points higher than the average for each brand in their country. Circular economy Increased share of used spare parts in our repair shops. Human care Proportion of committed employees above the benchmark and annual improvement. Proportion of women in sales operations should exceed 30 per cent. Climate care Contribute to lower climate impact among our customers when using the products and services we provide. Global SDGs Bilia Focus areas Human care Human care Climate care Sustainable growth Climate care Global SDGs Bilia Focus areas Climate care Circular economy Sustainable growth All four areas BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 14 (30) ===== SIDA 15 ===== Risks and opportunities Risks and risk takings are a natural part of Bilia’s business operations. A good understanding of the risks togeth- er with an efficient way of identifying, evaluating and managing the risks are important for Bilia’s short-term and long-term success. Bilia has a formal yearly process at Group level to identify, plan and reduce identified risks in the business. Please refer to the Annual Report for a description of the risks and Bilia’s risk management. With the exception of the general economic environ- ment, high inflation and rising interest rates, the events that have transpired in the wider world since publication of the annual report are not judged to entail any new material risks or changes in working methods compared with the de- scription in the Annual Report for 2022. It is not possible to estimate the impact of the general economic environment, high inflation and rising interest rates on Bilia’s future opera- tions, but a future negative impact cannot be ruled out. Related party transactions For a description of related party transactions, see page 97 , “Note 30” of the 2022 Annual Report. Seasonal variations and number of working days Bilia’s business and operating profit are affected by sea- sonal variations to a limited extent. The number of working days for the reporting periods is affected by when national holidays fall in different years. Business and operating prof- it in mainly the Service Business, but also the Car Business, are affected by the number of working days. Parent Company Bilia AB is responsible for the Group’s management, strategic planning, purchasing, public relations, business development, legal, marketing, HR, real estate activities, accounting and financing. Annual General Meeting 2023 The Annual General Meeting was held on 26 April 2023. The Board decided on a dividend of SEK 8.80 (8.00) per share, to be paid in four instalments of SEK 2.20 per share. The proposed dividend is in line with Bilia’s policy that the dividend should be at least 50 per cent of earnings per share. Other information THE GROUP   VISION AND BUSINESS IDEA   CULTURE AND CORE VALUES   CUSTOMER PROMISE A better experience. Our general goal is to create an experience that exceeds the customer’s ex- pectations, and adds value that distinguishes Bilia from its competitors. Dedication, Competence, Genuine, Respect. At Bilia we are engaged in the meeting with customers, with each other and with suppliers. Competence gives solutions and suggestions that benefit the customer the most. Being genuine and showing respect build confidence in Bilia and our employees. The best service company in the business – through considera- tion for customers, colleagues and the world we live in. Bilia will create a sustainable business through consideration and pride by offering attractive and innovative solutions for the mobile human being.   OUR CAR BRANDS BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 15 (30) ===== SIDA 16 ===== Consolidated Statement of Income and Other Comprehensive Income Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Net turnover 8,708 7,291 28,406 24,920 38,831 35,345 Costs of goods sold –7,342 –6,038 –23,914 –20,583 –32,618 –29,287 Gross profit 1,366 1,253 4,492 4,337 6,213 6,058 Other operating income 3 97 35 413 37 415 Selling and administrative expenses –1,080 –960 –3,452 –3,140 –4,640 –4,328 Other operating expenses –1 –4 –13 –19 –37 –43 Operating profit 1) 288 386 1,062 1,591 1,573 2,102 Financial income 10 2 13 3 14 4 Financial expenses –103 –44 –272 –133 –332 –193 Profit from shares in associated companies 22 15 62 71 80 89 Profit before tax 216 359 866 1,532 1,336 2,002 Tax –48 –74 –185 –268 –297 –380 Net profit for the period 169 285 682 1,264 1,040 1,622 Other comprehensive income Items that can be reclassified to profit or loss Translation differences attributable to foreign operations –6 24 –24 60 6 90 Change in fair value of cash flow hedges, net after tax –18 — –58 — –9 49 Other comprehensive income after tax –24 24 –82 60 –3 139 Comprehensive income for the period 145 309 600 1,324 1,037 1,761 Net profit attributable to: - Parent Company's shareholders 169 285 682 1,264 1,040 1,622 - Non-controlling interests 0 0 0 0 0 0 Comprehensive income attributable to: - Parent Company's shareholders 145 309 600 1,324 1,037 1,761 - Non-controlling interests 0 0 0 0 0 0 Basic earnings per share, SEK 1.83 3.14 7.41 13.54 11.30 17.43 Diluted earnings per share, SEK 1.83 3.12 7.40 13.52 11.29 17.41 Average number of shares, '000 91,984 91,984 91,984 93,365 91,984 93,017 Average number of shares, after dilution, '000 92,260 92,091 92,176 93,476 92,111 93,126 1) Amortisation and depreciation according to plan by asset class: – Intellectual property –53 –45 –156 –132 –204 –180 – Land and buildings –26 –18 –67 –55 –85 –73 – Equipment, tools, fixtures and fittings –29 –34 –104 –103 –141 –140 –  Leased vehicles –81 –87 –294 –305 –376 –387 – Right-of-use assets –149 –131 –444 –398 –577 –531 Total –337 –315 –1,066 –993 –1,384 –1,311 ACCOUNTS – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 16 (30) ===== SIDA 17 ===== Consolidated Statement of Financial Position, Summary SEK M 30 September 2023 31 December 2022 30 September 2022 Assets Non-current assets Intangible assets Intellectual property 1,017 1,157 941 Goodwill 1,519 1,520 1,269 2,536 2,677 2,210 Property, plant and equipment Leased vehicles 2,536 2,390 2,266 Right-of-use assets 4,018 3,855 3,227 Other tangible assets 1,868 1,784 1,706 8,422 8,029 7,199 Financial assets 706 700 590 Deferred tax assets 178 172 177 Total non-current assets 11,842 11,578 10,176 Current assets Inventories 4,968 5,247 3,712 Other receivables 2,236 2,720 1,873 Cash and cash equivalents 333 456 428 Total current assets 7,537 8,423 6,013 TOTAL ASSETS 19,380 20,001 16,189 Equity and liabilities Equity 4,650 4,887 4,475 Non-current liabilities Bond issue 1,294 498 1,297 Interest-bearing liabilities 37 47 215 Lease liabilities 3,681 3,529 2,831 Other liabilities and provisions 2,399 2,272 1,978 7,411 6,346 6,321 Current liabilities Bond issue 32 800 — Interest-bearing liabilities 1,652 1,328 253 Lease liabilities 809 737 537 Other liabilities and provisions 4,826 5,903 4,603 7,319 8,768 5,393 TOTAL EQUITY AND LIABILITIES 19,380 20,001 16,189 Statement of Changes in Group Equity, Summary SEK M Nine months 2023 Full year 2022 Nine months 2022 Opening balance 4,887 4,417 4,417 Decided dividend –809 –740 –740 Incentive programme 3 6 5 Buy-back of own shares — –525 –525 Revaluation of put option –31 –32 –6 Comprehensive income for the period 600 1,761 1,324 Equity at end of period 4,650 4,887 4,475 Equity attributable to: - Parent Company's shareholders 4,650 4,887 4,475 - Non-controlling interests 0 0 0 ACCOUNTS – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 17 (30) ===== SIDA 18 ===== Consolidated Statement of Cash Flows Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Operating activities Profit before tax 216 359 866 1,532 1,336 2,002 Depreciation and impairment losses 337 314 1,066 993 1,426 1,353 Other items not affecting cash –35 –122 –147 –482 –157 –492 Tax paid –68 –80 –364 –320 –535 –491 Change in inventories 33 –147 142 –129 –719 –990 Change in operating receivables 153 –74 467 –138 –413 –1,018 Change in operating liabilities –64 –263 –873 –945 385 312 Cash flow from operating activities 573 –13 1,157 511 1,322 676 Investing activities Acquisition of non-current assets (intangible and tangible) –155 –57 –320 –289 –421 –390 Disposal of non-current assets (intangible and tangible) 16 0 41 19 41 19 Acquisition of leased vehicles –279 –248 –920 –725 –1,343 –1,148 Disposal of leased vehicles 114 185 522 945 765 1,188 Operating cash flow 269 –133 480 461 365 345 Investment in financial assets — 0 –2 –2 –2 –1 Disposal of financial assets 9 1 15 3 15 3 Acquisition of subsidiary/operation, net 1 –43 –7 –153 –666 –811 Disposal of subsidiary/operation, net — 256 — 797 0 797 Cash flow from investing activities –293 94 –672 595 –1,610 –343 Financing activities Borrowings 16 — 840 62 889 111 Repayment of loans –4 –32 –779 –32 –747 0 Repayment of lease liabilities –134 –244 –442 –456 –603 –618 Net change in short-term credit facilities 45 –10 356 –121 1,412 935 Buy-back of own shares — –7 — –525 0 –525 Dividend paid to the company's shareholders –202 –184 –589 –372 –773 –556 Cash flow from financing activities –280 –477 –614 –1,444 178 –653 Change in cash and cash equivalents, excluding translation differences 0 –396 –128 –338 –110 –320 Exchange difference in cash and cash equivalents –4 4 5 12 14 22 Change in cash and cash equivalents –4 –392 –123 –326 –96 –298 Cash and cash equivalents at start of period 337 820 456 754 428 754 Cash and cash equivalents at end of period 333 428 333 428 333 456 ACCOUNTS – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 18 (30) ===== SIDA 19 ===== Note 1 Accounting principles This interim report has been prepared in accordance with International Financial Accounting Standards (IFRSs) IAS 34 and applicable provisions of the Annual Accounts Act. The interim report for the Parent Compa- ny has been prepared in accordance with Chapter 9 of the Annual Accounts Act, “Interim Reports”. The same accounting policies and calculation methods have been applied for the Group and the Parent Company as in the most recent Annual Report. New accounting policies from 1 January 2023 New or revised IFRS to be used in future are not expected to have any material effect on the consolidated financial statements. Disclosures in accordance with IAS 34, paragraph 16, are made not only in the financial statements and related notes, but also in other parts of this interim report. Note 2 Fair value of financial instruments Valuation principles and classifications of Bilia's financial instruments as described in the annual report for 2022 have been applied consistently during the reporting period. To hedge electricity costs, Bilia has decided to use electricity derivatives to even out price variations on the electricity market. Bilia hedges gradually up to five years and builds up the volume of electricity contracts for each delivery date. The hedges meet the requirements for effectiveness, which means that the changes in value are recognised in other comprehensive income. The forward agreements used to hedge contracted purchas- es of electricity are classified as cash flow hedges and amounted to a debt of SEK 11 M. Bilia's financial instruments in the form of currency derivatives are valued at fair value over the statement of income and are valued according to valuation level 2. The value of the currency derivatives was not material and did not constitute a significant item in the state- ment of financial position for the Group. Valuation of the currency derivatives at fair value has resulted in a cost of SEK 3 M, which was matched by a cost for the revaluation of assets in foreign currency. The effect on the Group's result was therefore SEK 0 M. Bilia's financial instruments valued at fair value over equity consist of put/call options issued in connection with acquisitions and are valued at fair value based on future exercise price according to valuation level 3. The options are reported as provisions in the statement of financial position and amounted to SEK 156 M. Note 3 Revenues and costs that affect comparability Acquisition-related expenses and value adjustments relate to costs for acquiring operations. Result from sale of operations in the previous year includes profit from the divestment of Volvo and Renault facilities in Sweden and Norway. Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Operational earnings 335 334 1,209 1,332 1,783 1,906 – Result from sale of operations — 92 — 369 –2 368 – Structural costs etc. — 0 –7 8 –24 –9 – Acquisition-related costs and value adjustments — –1 — –3 –2 –5 – Amortisation of surplus values –47 –39 –140 –115 –183 –158 Operating profit 288 386 1,062 1,591 1,573 2,102 ADDITIONAL DISCLOSURES – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 19 (30) ===== SIDA 20 ===== Note 4 Group's operating segments Third quarter 2023 SEK M Service Car Fuel Tota l Segment reconciliation Group Net turnover External sales 1,493 6,920 288 8,701 7 8,708 Internal sales 440 — — 440 –440 — Total net turnover 1,933 6,920 288 9,141 –433 8,708 Depreciation/amortisation –134 –185 –1 –320 –17 –337 Operational earnings/Operating profit 205 151 6 362 –74 288 Revenue and costs that affect comparability: – Structural costs etc — — — — — — – Acquisition-related costs and value adjustments — — — — — — – Amortisation of surplus values –25 –22 — –47 — –47 Total –25 –22 — –47 — –47 Service Car SEK M Sweden Norway Western Europe Sweden Norway Western Europe Net turnover External sales 981 381 131 4,381 1,624 915 Internal sales 295 126 19 — — — Total net turnover 1,276 507 150 4,381 1,624 915 Depreciation/amortisation –90 –31 –13 –133 –41 –11 Operational earnings 170 23 12 109 0 42 Revenue and costs that affect comparability: – Structural costs etc — — — — — — – Acquisition-related costs and value adjustments — — — — — — – Amortisation of surplus values –13 –5 –7 –11 –5 –6 Total –13 –5 –7 –11 –5 –6 Third quarter 2022 SEK M Service Car Fuel Tota l Segment reconciliation Group Net turnover External sales 1,286 5,686 312 7,284 7 7,291 Internal sales 426 — — 426 –426 — Total net turnover 1,712 5,686 312 7,710 –419 7,291 Depreciation/amortisation –126 –172 –1 –299 –16 –315 Operational earnings/Operating profit 192 155 –2 345 41 386 Revenue and costs that affect comparability: – Result from sale of operations 46 46 — 92 — 92 – Structural costs etc. 0 0 — 0 — 0 – Acquisition-related costs and value adjustments –1 0 — –1 — –1 – Amortisation of surplus values –18 –21 — –39 — –39 Total 27 25 — 52 — 52 Service Car SEK M Sweden Norway Western Europe Sweden Norway Western Europe Net turnover External sales 888 309 89 3,160 1,887 639 Internal sales 243 165 18 — — — Total net turnover 1,131 474 107 3,160 1,887 639 Depreciation/amortisation –76 –38 –12 –124 –36 –12 Operational earnings 171 15 6 71 62 22 Revenue and costs that affect comparability: – Result from sale of operations –2 48 — –2 48 — – Structural costs etc. 0 0 — 0 0 — – Acquisition-related costs and value adjustments 0 –1 — 0 0 — – Amortisation of surplus values –8 –5 –5 –9 –6 –6 Total –10 42 –5 –11 42 –6 ADDITIONAL DISCLOSURES – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 20 (30) ===== SIDA 21 ===== Nine months 2023 SEK M Service Car Fuel Tota l Segment reconciliation Group Net turnover External sales 4,866 22,665 852 28,383 23 28,406 Internal sales 1,514 — — 1,514 –1,514 — Total net turnover 6,380 22,665 852 29,897 –1,491 28,406 Depreciation/amortisation –414 –595 –4 –1,013 –53 –1,066 Operational earnings/Operating profit 777 508 18 1,303 –241 1,062 Revenue and costs that affect comparability: – Structural costs etc –3 –2 — –5 –2 –7 – Acquisition-related costs and value adjustments — — — — — — – Amortisation of surplus values –75 –65 — –140 — –140 Total –78 –67 — –145 –2 –147 Service Car SEK M Sweden Norway Western Europe Sweden Norway Western Europe Net turnover External sales 3,328 1,147 391 13,920 6,077 2,668 Internal sales 996 460 58 — — — Total net turnover 4,324 1,607 449 13,920 6,077 2,668 Depreciation/amortisation –269 –107 –38 –397 –164 –34 Operational earnings 616 108 53 368 31 109 Revenue and costs that affect comparability: – Structural costs etc –2 — –1 –2 — — – Acquisition-related costs and value adjustments — — — — — — – Amortisation of surplus values –39 –16 –20 –33 –15 –17 Total –41 –16 –21 –35 –15 –17 Nine months 2022 SEK M Service Car Fuel Tota l Segment reconciliation Group Net turnover External sales 4,422 19,475 998 24,895 25 24,920 Internal sales 1,379 — — 1,379 –1,379 — Total net turnover 5,801 19,475 998 26,274 –1,354 24,920 Depreciation/amortisation –376 –565 –3 –944 –49 –993 Operational earnings/Operating profit 793 583 18 1,394 197 1,591 Revenue and costs that affect comparability: – Result from sale of operations 101 216 52 369 — 369 – Structural costs etc. 5 4 — 9 –1 8 – Acquisition-related costs and value adjustments –3 0 — –3 — –3 – Amortisation of surplus values –57 –58 — –115 — –115 Total 46 162 52 260 –1 259 Service Car SEK M Sweden Norway Western Europe Sweden Norway Western Europe Net turnover External sales 2,997 1,159 266 10,971 6,562 1,942 Internal sales 861 452 66 — — — Total net turnover 3,858 1,611 332 10,971 6,562 1,942 Depreciation/amortisation –229 –110 –37 –378 –151 –36 Operational earnings 594 160 39 313 208 62 Revenue and costs that affect comparability: – Result from sale of operations 53 48 — 168 48 — – Structural costs etc. — 5 — — 4 — – Acquisition-related costs and value adjustments –1 –2 — 0 –1 1 – Amortisation of surplus values –26 –14 –17 –26 –15 –17 Total 26 37 –17 142 36 –16 ADDITIONAL DISCLOSURES – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 21 (30) ===== SIDA 22 ===== Note 5 Acquisitions and divestments of operations Acquisitions and divestments in 2023 There have been no acquisitions or divestments during 2023. Acquisitions in 2022 On 1 June Bilia acquired AS Insignia in Norway, which conducts sales and service operations for the car brands Jaguar, Land Rover and Morgan. The acquired operation had a turnover of approximately NOK 450 M for 2021 and reported an operating loss of NOK 5 M. The number of employees is 43 people. Acquisition-related expenses attributable to the acquisition amounted to NOK 1 M and relate to fees to consultants in connection with due diligence and have been reported as other operating expenses. Acquired customer relations and distribution rights of NOK 17 M respectively NOK 22 M are reported as intangible assets and are amortised over 10 respec- tively 5 years. On 1 July Bilia acquired 50.1 per cent of Bil1Din Hold- ing AS in Norway which conducts car dismantling oper- ations. Bilia has committed to buy another 49.9 per cent of the shares. The obligation is recognised as a financial liability, which replaces the item Non-controlling interests within equity. The business acquired reported a turnover of about NOK 55 M for 2021, with an operating margin of 1.7 per cent. The number of employees is about 30 people. Acquisition-related expenses attributable to the acquisition amounted to NOK 1 M and relate to fees to consultants in connection with due diligence and have been reported as other operating expenses. Reported goodwill amounts to NOK 49 M. On 1 November Bilia acquired M Bilar Group AB, which conducts sales and service operations for the car brands BMW and MINI. The acquired operation had a turnover of approximately SEK 1,3 Bn for 2021 with an average operating margin for the past three years of 4.5 per cent. The number of employees was 101 people by the end of 2021. Acquisition-related expenses attributable to the acquisition amounted to SEK 1 M and relate to fees to consultants in connection with due diligence and have been reported as other operating expenses. Acquired customer relations of SEK 141 M are reported as intan- gible assets and are amortised over 10 years. Acquired goodwill amounts to SEK 147 M. On 15 December Bilia acquired Söderbergs Person- bilar i Norrköping AB, which conducts sales and service operations for the car brands Volkswagen, Audi, Skoda, Seat and Cupra cars as well as Volkswagen transport vehicles. The acquired operation had a turnover of approximately SEK 1 Bn for 2021 and reported an oper- ating margin of 3.3 per cent. The number of employees was 210 people by the end of 2021. Acquisition-related expenses attributable to the acquisition amounted to SEK 1 M and relate to fees to consultants in connection with due diligence and have been reported as other oper- ating expenses. Acquired customer relations and distribu- tion rights of SEK 52 M respectively SEK 37 M are reported as intangible assets and are amortised over 10 respec- tively 5 years. Acquired goodwill amounts to SEK 86 M. The acquisitions of LB´s Lastbilar AB and Kokstad Autosenter AS, DäckAtt AB, Hellgrens Lastvagnsservice AB, Skellefteå Billackering AB and Holmgrens Truck- Motor AB have not had any significant impact on the Group's financial position. All acquisition analyses are preliminary pending final completion of the financial statements for the day of taking possession. Divestments in 2022 During the year, eleven facilities in Sweden that sell new cars, used cars and service operations for Volvo and Renault and three facilities in Norway that sell new cars, used cars and service operations for Volvo have been divested. On 1 February, Bilia sold four facilities in Skaraborg to Bröderna Brandt Personbilar AB. On 1 May, Bilia sold five facilities in Bergslagen to Bilkompaniet i Dalarna AB. On 1 June, Bilia sold a facility in Stenungsund to Stendahls Bil AB. On 30 September, Bilia sold one facil- ity in Uppsala to Bilbolaget Invest Sundsvall AB. On 1 July, Bilia sold three facilities in Oslo to Volvo Car Stor- Oslo AS. The divested operations have reported turnover in the region of SEK 4 Bn and an operational profit of approx- imately SEK 325 M yearly for the past two years. The divestments resulted in a gain of SEK 222 M, reported in the first quarter, SEK 55 M in the second quarter, SEK 92 M in the third quarter and a loss of SEK 1 M in the fourth quarter which is reported as Other operating income. On 1 February, Bilia sold the remaining four BMW and MINI facilities in Germany to Autohaus Krah + Enders GmbH & Co. KG. The divested operation in Germany reported turnover in the region of SEK 800 M and an operational loss of approximately SEK 30 M yearly for the past two years. The divestment resulted in a loss of ap- proximately SEK 30 M, which was reported in the fourth quarter of 2021 when the agreement to sell the facilities was made. ADDITIONAL DISCLOSURES – GROUP BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 22 (30) ===== SIDA 23 ===== ADDITIONAL DISCLOSURES – GROUP Note 6 Specification of interest-bearing net debt and EBITDA Specification of interest-bearing net debt SEK M 30 September 2023 31 December 2022 30 September 2022 Current interest-bearing liabilities 1,846 2,261 252 Non-current interest-bearing liabilities 1,480 700 1,515 Lease liabilities IFRS 16 4,184 3,980 3,369 Cash and cash equivalents –333 –456 –428 Interest-bearing assets –86 –129 –8 Shares in associated companies –639 –590 –573 Net debt at end of the period 6,454 5,766 4,127 Net debt at end of the period, excluding IFRS 16 2,269 1,786 758 The ratio of net debt to EBITDA SEK M Oct. 22– Sept. 23 Full year 2022 Oct. 21– Sept. 22 Operating profit 1,573 2,102 2,038 Result from sale of operations, structural costs, acquisition costs and impairment losses 29 –353 –302 Total depreciation and amortisation 1,385 1,311 1,360 – depreciation of leased vehicles with repurchase agreements –289 –301 –349 EBITDA 2,697 2,759 2,747 Net debt to EBITDA ratio, times 2.4 2.1 1.5 Operating profit excluding IFRS 16 1,555 2,031 1,968 Result from sale of operations, structural costs, acquisition costs and impairment losses 29 –353 –302 Total depreciation and amortisation 1,385 1,311 1,360 – depreciation of leased vehicles with repurchase agreements –289 –301 –349 – depreciation of right-of-use assets –577 –531 –532 EBITDA excluding IFRS 16 2,103 2,157 2,145 Net debt to EBITDA ratio excluding IFRS 16, times 1.1 0.8 0.4 BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 23 (30) ===== SIDA 24 ===== Income Statement for Parent Company Third quarter Nine months Oct. 22– Sept. 23 Full year 2022SEK M 2023 2022 2023 2022 Net turnover 193 171 588 515 760 687 Administrative expenses –231 –182 –698 –578 –908 –788 Operating result 1) –39 –11 –110 –63 –149 –101 Result from financial items Profit from shares in Group companies — — — 368 –11 357 Interest income from Group companies 31 12 90 32 111 53 Other interest income and similar line items 4 1 5 1 5 1 Interest expenses to Group companies –6 –1 –9 –1 –12 –5 Interest expenses and similar line items –49 –13 –115 –38 –135 –58 Result after financial items –60 –12 –139 299 –191 247 Appropriations — — 2 — 1,050 1,048 Result before tax –60 –12 –137 299 858 1,295 Tax 4 –5 1 –10 –196 –207 Net result for the period –56 –17 –136 289 663 1,088 1) Amortisation and depreciation according to plan by asset class: - Intellectual property — — — — — — - Buildings  –6 –4 –18 –18 –25 –24 - Equipment, tools, fixtures and fittings –1 –2 –2 –2 –2 –2 Total –7 –6 –20 –20 –27 –26 ACCOUNTS – PARENT COMPANY BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 24 (30) ===== SIDA 25 ===== Balance Sheet for Parent Company, Summary SEK M 30 September 2023 31 December 2022 30 September 2022 Assets Non-current assets Property, plant and equipment 202 193 178 Shares in Group companies 3,139 3,136 2,423 Other non-current assets 70 69 76 Total non-current assets 3,411 3,398 2,677 Current assets Receivables from Group companies 1,288 2,145 423 Other receivables 298 189 278 Cash and cash equivalents 11 65 631 Total current assets 1,597 2,399 1,332 TOTAL ASSETS 5,008 5,797 4,009 Equity and liabilities Equity 470 1,413 612 Untaxed reserves 1,417 1,418 1,218 Provisions Deferred tax liability 10 10 14 10 10 14 Non-current liabilities Bond issue 1,294 498 1,297 Other liabilities 148 156 165 1,442 654 1,462 Current liabilities Bond issue 32 800 — Short-term interest bearing liabilities 845 703 — Liabilities to Group companies 144 240 95 Other liabilities 648 559 608 1,669 2,302 703 TOTAL EQUITY AND LIABILITIES 5,008 5,797 4,009 ACCOUNTS – PARENT COMPANY BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 25 (30) ===== SIDA 26 ===== The Group Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Net turnover, SEK M 8,634 8,684 8,945 7,291 10,425 9,871 9,826 8,708 EBITDA, SEK M 776 715 709 547 788 670 677 562 EBITDA excl. IFRS 16, SEK M 626 559 561 399 638 503 550 412 Operational earnings, SEK M 558 500 498 334 574 431 444 335 Operational margin, % 6.5 5.8 5.6 4.6 5.5 4.4 4.5 3.8 Operating profit, SEK M 447 684 521 386 511 380 394 288 Operating margin, % 5.2 7.9 5.8 5.3 4.9 3.8 4.0 3.3 Profit before tax, SEK M 424 682 491 359 470 320 330 216 Profit/loss for the period, SEK M 349 594 385 285 358 251 262 169 The ratio of net debt to EBITDA excl. IFRS 16, times 1) 0.2 0.1 0.2 0.4 0.8 1.1 1.1 1.1 Return on capital employed, % 1) 20.5 22.0 21.9 21.4 21.5 17.4 15.7 14.3 Return on equity, % 1) 33.8 37.4 37.1 35.8 36.2 27.8 25.5 22.4 Equity/assets ratio, % 26 28 25 28 24 26 23 24 Earnings per share, SEK 3.60 6.25 4.15 3.14 3.89 2.73 2.85 1.83 Equity per share, SEK 46 52 45 49 53 55 49 51 Average number of shares, '000 96,894 95,170 92,976 91,984 91,984 91,984 91,984 91,984 Number of shares, '000 95,777 93,947 91,984 91,984 91,984 91,984 91,984 91,984 Holdings of own shares, '000 2) 7,023 8,853 4,316 4,316 4,316 4,316 4,316 4,316 1) Rolling 12 months. 2) On 3 May 2022, repurchased own shares amounting to 6,500,000 were withdrawn. Business area – Service Business Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Turnover, SEK M 2,257 2,056 2,033 1,712 2,291 2,257 2,190 1,933 Operational earnings, SEK M 377 315 286 192 368 297 275 205 Margin, % 16.7 15.3 14.1 11.2 16.1 13.2 12.5 10.6 Reported growth in Sweden and Norway, % 15.3 11.3 8.3 –1.5 –1.5 8.6 6.1 11.0 Organic growth in Sweden and Norway, % –4.7 –5.0 0.5 3.8 9.6 8.6 9.1 9.1 Business area – Car Business Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Turnover, SEK M 6,588 6,796 6,993 5,686 8,438 7,913 7,832 6,920 Operational earnings, SEK M 207 189 239 155 240 158 198 151 Margin, % 3.1 2.8 3.4 2.7 2.8 2.0 2.5 2.2 New cars delivered, number 11,515 10,882 10,323 7,499 13,611 11,671 11,655 9,547 Order backlog of new cars, number 22,775 27,178 29,023 29,429 26,325 23,536 19,847 17,858 Used cars delivered, number 11,682 11,174 11,216 10,055 10,133 12,300 11,729 10,926 Business area – Fuel Business Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Turnover, SEK M 349 327 359 312 307 277 287 288 Operational earnings, SEK M 8 15 5 –2 3 8 5 6 Margin, % 2.3 4.7 1.3 –0.6 1.0 2.7 1.6 2.2 QUARTERL Y REVIEW BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 26 (30) ===== SIDA 27 ===== Bilia applies guidelines from ESMA (European Securities and Markets Authority) concerning alternative perfor- mance measures (APMs). Even though these perfor- mance measures are not defined or specified by IFRSs, Bilia believes that they provide valuable information to investors and Bilia’s management as a complement to IFRSs for assessing Bilia’s performance. Acquisition-related costs and value adjustments Pertains to costs for legal consultants and other external costs associated directly with an acquisition, and value adjustments regarding acquired inventory assets, which are depreciated over the turnover rate of the asset. Amortisation of surplus values Occurs in connection with acquisitions of operations and is recognised under intangible assets. Normally these surplus values are amortised over a 10-year period. Capital employed Balance sheet total less non-interest-bearing liabilities and provisions as well as deferred tax liabilities. Comparable operations Financial information and number of units that are adjusted for operations that have been acquired or dis- posed of during one of the periods. Deliveries Cars that have been physically turned over to the customer and invoiced and are included in reported net turnover. EBITDA Operational earnings plus total depreciation/amortisa- tion less amortisation of surplus values and depreciation of leased vehicles with repurchase agreements. Equity/assets ratio Equity in relation to balance sheet total. Excluding IFRS 16 Information excluding the accounting standard IFRS 16 Leases. Gain from sale of operation Difference between purchase consideration and the operation’s consolidated carrying amount, less selling costs. Growth Increase or decrease of net turnover in relation to the preceding year. Liquidity Unutilised credit with Nordea and DNB and cash and cash equivalents. Net debt Net debt consists of interest-bearing liabilities less cash and cash equivalents, interest-bearing current and long- term receivables, interests in associated companies and leased vehicles. Operating cash flow Cash flow from operating activities plus investments in and disposals of intangible assets and property, plant and equipment. Operating margin Operating profit in relation to net turnover. Operational earnings Operating profit, excluding revenues and costs that affect comparability between accounting periods and/ or operating segments. They include, but are not limited to, acquisition-related expenses, value adjustments, restructurings and amortisation of surplus values. For the business areas operational earnings are the only result measurement. Operational margin Operational earnings in relation to net turnover. For the business areas the operational margin is called “Margin”. Order backlog New cars ordered by the customer but not yet delivered. Organic growth Net turnover is adjusted for operations that have been acquired or disposed of during one of the periods. Adjust- ment is also made for exchange rate differences and for calendar effect. Organic growth reported under Quar- terly review for the Service Business relates to Sweden and Norway. Return on capital employed Operating profit plus interest expense included in the business and financial income in relation to average capital employed. Return on equity Net profit for the year in relation to average equity. Structural costs Costs that significantly alter the thrust and/or scope of the operation. Examples of structural costs may be costs for reducing the number of employees and costs for va- cating a leased facility before the expiration of the lease. The ratio of net debt to EBITDA Net debt in relation to EBITDA. Underlying values Values that are adjusted for operations that have been acquired or disposed of during one of the periods. Ad- justment is made for exchange rate differences, where applicable. Reconciliation of performance measures can be found at bilia.com/en/investors/financial-information/ Definitions and performance measures DEFINITIONS AND PERFORMANCE MEASURES BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 27 (30) ===== SIDA 28 ===== Press and analyst meeting On Tuesday 24 October 2023 Bilia arranges press and analyst meetings via Financial Hearings, where CEO Per Avander and CFO Kristina Franzén will present the report and answer questions. The presentation starts at 09:00 CEST. If you wish to participate via webcast, please use the link below. Via the webcast you can ask written questions. https://ir.financialhearings.com/bilia-q3-2023 If you wish to participate via teleconference, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference. https://conference.financialhearings.com/teleconfer - ence/?id=5007817 Contact For further information please contact: Carl Fredrik Ewetz, Investor Relations +46 (0) 10 497 07 73, carl.fredrik.ewetz@bilia.se Per Avander, Managing Director and CEO +46 (0)10 497 70 00, per.avander@bilia.se Kristina Franzén, CFO +46 (0)10 497 73 40, kristina.franzen@bilia.se Additional disclosures Prospective information Prospective information in this report is based on management’s expectations at the time of the report. Even if the Board of Directors and management find the expectations to be reasonable, there is no guarantee that these expectations are or will turn out to be correct. Consequently, future outcomes may vary considerably compared with those foreseen in the prospective infor- mation due to such circumstances as a changed market situation for the Group’s services or more generally changed conditions relating to the economy, markets and competition, changes in legal requirements and oth- er political measures, as well as fluctuations in exchange rates. The company does not undertake to update or correct such prospective information other than what is stipulated by law. Translation This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter should prevail. ADDITIONAL DISCLOSURES Calendar Interim Report October–December 2023: 7 February 2024 Interim Report January–March 2024: 24 April 2024 Interim Report April–June 2024: 18 July 2024 Interim Report July–September 2024: 23 October 2024 This is information that Bilia AB (publ) is obliged to make public pursuant to the EU’s Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on 24 October 2023, at 08:00 CEST. BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 28 (30) ===== SIDA 29 ===== REVIEW REPORT Auditor´s Review report Bilia AB (publ) corp. id. 556112-5690 Introduction We have reviewed the condensed interim financial information (interim report) of Bilia AB as of 30 September 2022 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the prepara- tion and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial informa- tion consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act. . Göteborg 24 October 2023 PricewaterhouseCoopers AB Fredrik Göransson Authorized Public Accountant This document is a translation of the Swedish original. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail. BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 29 (30) ===== SIDA 30 ===== Bilia is one of Europe’s largest full-service suppliers for everything related to car ownership, with a leading position in servicing and sales of cars, transport vehicles and trucks. We offer the car owner service, repair, fuel, car wash, rental cars, tyres and wheels, rim repair, car accessories, car care, paint work, windscreen replacements, car dismantling and more. Bilia has about 160 facilities in Sweden, Norway, Luxembourg and Belgium plus one online auction site in Sweden. Bilia’s Service Business comprises a well-developed range of services and service concepts that are continuously developed to simplify car ownership for the customers. Bilia offers accessories and spare parts, original services and repairs, tyre hotels, rim repair, car glass repair along with other workshop services, store sales and e-commerce. Bilia’s Car Business comprises sales of new and used cars, transport vehicles and trucks, plus supplementary services such as financing and insurance. Bilia sells cars from Volvo, BMW, MINI, Toyota, Lexus, Mercedes-Benz, Porsche, Volkswagen, Audi, Skoda, Seat, Cupra, Nissan, Jaguar, Land Rover, XPENG as well as transport vehicles from Toyota, Mercedes-Benz, Volkswagen, Nissan and trucks from Mercedes- Benz. Bilia’s Fuel Business comprises fuel sales and car washes in Sweden. Bilia AB (publ) Box 9003, SE-400 91 Gothenburg, Sweden Visiting address: Norra Långebergsgatan 3, Västra Frölunda Telephone: +46 (0)10 497 70 00 bilia.com Corporate ID No.: 556112-5690 BILIA AB | INTERIM REPORT 1 JANUARY–30 SEPTEMBER 2023 30 (30)