Kvartalsrapport Q1 2023

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

Interim Report 1, 2023
 
 
› SALES totalled SEK 11,646 million (8,749) million 
 
› PROFIT AFTER NET FINANCIAL ITEMS amounted to SEK 1,654 (906) million 
 
› PROFIT AFTER TAX was SEK 1,274 (680) million 
 
› EARNINGS per share before and after dilution, based on the average 
number of shares outstanding during the period, were SEK 0.63 (SEK 0.33) 
 
› ACQUISITION OF-65% of the shares in the Canadian stove company Miles Industries Ltd (2023)

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

2 NIBE · INTERIM REPORT 1, 2023 
CEO Gerteric Lindquist’s report 
 
Strong start to the year 
 
Continued strong demand and clear improvement in supply chain situation.  
 
 
 
 
In the first three months of the year, the Group’s sales grew by 33.1% 
(28.1%), of which 27.8% (26.8%) was organic growth. The weak Swedish 
krona had a positive effect on sales growth, as did the price increases  
introduced in the past 12 months. In real terms, organic growth was well 
above the target of 10%, however.  
When comparing the first quarter of 2023 with the corresponding 
period in the previous year, it is necessary to bear in mind that, relatively 
strong growth notwithstanding, the first quarter of 2022 was charact -
erized by our sub -suppliers’ inability to supply requested quantities 
while at the same time implementing frequent, as well as steep, price 
increases.  
The continued strong growth in demand is primarily due to the tran-
sition to a more sustainable society and volatile energy prices. With re-
gard to the difficulties relating to materials and components supply, our 
sub-suppliers have for several quarters worked purposefully to adapt to 
the much higher level of demand, and we are delighted to see a signifi-
cant improvement in both supply chain capacity and supply chain se-
curity. Unfortunately, this generally positive development has been 
marred by the fact that a few strategic suppliers are still lagging behind 
in their efforts to increase capacity. This means our supply chain prob-
lems continued in the quarter just ended. We expect to be able to grad-
ually return to a more normal supply chain situation from the st art of 
the second half of the year. 
 
The business area NIBE Climate Solutions  continued to report very 
strong growth in all targeted markets in Europe and the market is also 
taking off in North America. To be able to achieve acceptable delivery 
performance, significant efforts have been made to safeguard our sub-
suppliers’ delivery capacity both in the short term and from a long-term 
perspective. We are delighted that we are now starting to see the ef-
fects of these painstaking efforts, although we are relu ctant to predict 
a return to a more normal supply chain situation until the second half of 
the year. Alongside this work, we are also implementing a very ambi-
tious investment programme to ensure that we are always at the fore-
front in terms of our development capacity, our production capacity and 
our market presence.  
The growth in sales enabled us to post a sharp increase in operating 
profit. The gradual improvement in delivery capacity among our sub -
suppliers has also boosted our productivity as it has enabled production 
to run more smoothly. Altogether, this resulted in a sharp improvement 
in operating margin. However, this should be viewed against the back-
ground that operating profit in 2022 was burdened by write -downs of 
SEK 114 million in respect of our Russian operations.  
 
The business area NIBE Stoves  also recorded continued strong 
growth, particularly in the wood -fired products category in Europe. As 
before, the supply chain situation remained challenging, due to a con-
tinued shortage of a few, absolu tely crucial, input goods. In this busi-
ness area too, supply chain capacity is not expected to return to some-
thing akin to normal until later this year. 
Our own production capacity is gradually being expanded as a result 
of an ambitious investment programme that also includes large invest-
ments in automation and robotics.  
Our major focus on development of products with lower particle 
emissions is starting to bear fruit and we have begun introducing this 
product concept.  
The strong growth in sales also boosted operating profits and com-
bined with better price balance and good cost control, the operating 
margin also improved. 
 
 
Calendar  
 
May 16, 2023  
08.00 (CEST) Interim Report 1, January – March 2023 
11.00 (CEST) Teleconference (in English):  
Presentation of Interim Report 1, 2023 and opportunity to ask  
questions.  
Registration on our website www.nibe.com is required in order to  
access the presentation images and to obtain a code to be able to 
 ask questions.  
17.00 (CEST) Annual General Meeting  
August 17, 2023  
Interim Report 2, January – June 2023  
November 15, 2023  
Interim Report 3, January – September 2023

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

NIBE · INTERIM REPORT 1, 2023 3 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The business area NIBE Element reported mostly strong demand, par-
ticularly in product areas associated with sustainability. Pure consumer 
goods performed less well, however. Demand in the semiconductor in-
dustry has also declined since the fourth quarter of 2022, when the USA 
introduced restrictions on trade with China in respect of certain high 
technology equipment. However, this is expected to be a temporary dip 
as semiconductor production capacity is now being expanded in both 
North America and Europe. 
This business area too was unabl e to escape supply chain disrup-
tions, which have greatly tested the organization in terms of adaption 
and unconventional solutions in order to maintain a decent level of sup-
ply chain security as far as possible. The assessment is that a return to 
a more stable supply chain situation should hopefully take place in the 
second half of the year. 
The increase in sales together with good cost control and agility and 
adaptability resulted in an improved operating profit, while the operat-
ing margin declined slightly, primarily as a result of a change in produc-
tivity. 
 
 
Investments  
 
Investments in our existing businesses amounted to SEK 639 million in 
the first quarter, compared with SEK 478 million in the previous year. 
Excluding leases, depreciation amounted to SEK 288 million, compared 
with SEK 260 million in the first quarter of 2022. In view of the expected 
continued good market conditions in all three business areas, together 
with further automation, rationalizations and sustainable development, 
the rate of investment in our existing businesses will remain high. In the 
next three to four years alone, accumulated investments are expected 
to amount to around SEK 10 billion, of which around half will comprise 
increased production capacity.  
Profit  
 
Operating profit in the first quarter improved by 86.5% compared with 
the corresponding period in the previous year and the operating margin 
rose from 10.8% to 15.1%. 
Profit after net financial items improved by 82.6% in the first quarter, 
while the profit margin rose to 14.2% from 10.4% in the previous year.  
Excluding the effect of one-off write-downs of SEK 114 million in re-
spect of our Russian operations in the first quarter of 2022, the operat-
ing margin in the first quarter of the previous year was 12.1% and the 
profit margin was 11.7%.  
 
Gerteric Lindquist 
            Managing Director and CEO 
Outlook for  2023  
⋅ Our corporate philosophy and our strong range of products, with 
their focus on sustainability and energy efficiency, are in tune with 
the times because the transition to a fossil-free society is 
considered to be irrevocable.  
⋅ We are well prepared to continue being proactive on acquisitions. 
⋅ Our internal efforts to enhance efficiency, combined with our 
rigorous cost control, will ensure consistently healthy margins. 
⋅ All three business areas have a good geographical spread, which 
makes us less vulnerable to local downturns in demand. 
⋅ Our decentralised organisation, based on independent units, is well 
proven and creates the conditions for greater motivation and 
flexibility. 
⋅ The pandemic effects are continuing to fade, which is a very 
significant and positive factor. 
⋅ The problems relating to sub-suppliers are expected to gradually 
improve over the year. 
⋅ The effects of the war in Ukraine, general political unrest, interest 
rate developments and high energy prices are factors that are 
difficult to predict, however. 
⋅ However, as is our habit, and based on experience, we remain 
cautiously optimistic about our full-year performance. 
 
Markaryd, May 16, 2023 
 
 
 
 
Gerteric Lindquist 
Managing Director and CEO

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

4 NIBE · INTERIM REPORT 1, 2023 
 
Sales  
The Group’s net sales totalled SEK  11,646 million (SEK 8,749 million) . This 
correspond to growth of 33.1%. Of the total increase in sales of SEK 2,897 
million, acquired sales amounted to SEK 464 million, which means that  
organic sales increased by 27.8%. 
Profit  
Profit for the year after net financial items amounted to SEK 1,654 million. 
This corresponds to an 82.6% increase in earnings compared with 2022. 
In the same period in the previous year, profit after net financial  items 
amounted to SEK  906 million. At the end of the period, net financial items 
amounted to SEK -101 million, an increase of SEK 66 million compared 
with the same period in the previous year. The increase in net financial 
costs was due the general inter est rate situation because the Group’s 
credit facilities mostly have variable interest rates. Profit for the year 
was weighed down by acquisition costs of SEK 30 (3) million . Return on 
equity, was 17.7% (15.6%). 
Acquisitions  
At the beginning of January 2023, we acquired 65% of the shares in the 
Canadian stove company Miles Industries Ltd, which has sales of around 
CAD 75 million. We have an agreement to acquire the outstanding sha-
res not later than in 2026. The company was consolidated into NIBE 
Stoves as of January 2023. The acquisition balance sheet is still provis-
ional. 
Investments  
During the year, the Group invested a total of SEK 1,341 (492) million. A 
total of SEK 702 (14) million of the investments related to acquisitions 
of operations. The remaining SEK 639 (478) million mainly comprised in-
vestments in machinery and equipment and buildings in existing oper-
ations. The investment amount relating to acquisitions is based on both 
initial considerations and an estimate of additional considerations to be 
paid. 
Cash flow and financial position  
Cash flow from operating activities before changes in working capital 
amounted to SEK 1,419 (939) million. Cash flow after changes in working 
capital amounted to SEK 392 (-145) million. The increase in working ca-
pital was primarily due to stockbuilding ahead of peak season. 
Interest-bearing liabilities at the end of the period amounted to SEK 
11,701 million. At the start of the year, the corresponding figure was SEK 
11,357 million. At the end of March, the Gr oup had cash and cash equi-
valents of SEK 4,543 million, as against SEK 5,441 million at the start of 
the year. The equity/assets ratio at the end of the period was 52.3%, 
compared with 51.8% at the start of the year and 50.3% at the corre-
sponding time in the previous year.  
Parent  
Parent activities comprise Group executive management functions, 
certain shared Group functions and financing. Sales for the year totalled 
SEK 15 (16) million and profit after financial items was SEK 12 ( -29) 
million
    
 
NIBE Group 
 
 
 
 
 
 
 
Key figures  
Q1 
2023 
Q1 
2022 
Past 12  
months 
Full 
year 
2022 
Net sales SEK m 11,646 8,749 42,968 40,071 
Growth % 33.1 28.1 31.2 30.0 
of which acquired % 5.3 1.3 4.4 3.5 
Operating profit SEK m 1,755 941 6,677 5,863 
Operating margin % 15.1 10.8 15.5 14.6 
Profit after net financial items SEK m 1,654 906 6,423 5,675 
Profit margin % 14.2 10.4 14.9 14.2 
Equity/assets ratio % 52.3 50.3 52.3 51.8 
Return on equity % 17.7 15.6 19.5 18.1 
 
Group sales by geographical region 
 
 
 
    Net sales 
Past nine quarters (in millions of SEK) 
 
Profit after financial items 
Past nine quarters (in millions of SEK)

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

NIBE · INTERIM REPORT 1, 2023 5 
Business area trends 
 
Quarterly data 
Consolidated income statement    2023     2022     2021 
(SEK million) Q1  Q1 Q2 Q3 Q4  Q1 Q2 Q3 Q4 
Net sales 11,646  8,749 9,656 9,999 11,667  6,831 7,790 7,823 8,388 
Operating expenses -9,891  -7,808 -8,087 -8,534 -9,779  -5,966 -6,568 -6,621 -7,209 
Operating profit 1,755  941 1,569 1,465 1,888  865 1,222 1,202 1,179 
Net financial items -101  -35 -22 -14 -117  -32 -51 -31 -36 
Profit after net financial items 1,654  906 1,547 1,451 1,771  833 1,171 1,171 1,143 
Tax -380  -226 -310 -343 -401  -188 -259 -260 -233 
Net profit 1,274  680 1,237 1,108 1,370  645 912 911 910 
            
Net sales, business areas            
NIBE Climate Solutions 7,736  5,583 6,367 6,344 7,782  4,310 5,199 5,142 5,476 
NIBE Element 3,013  2,474 2,672 2,842 2,937  2,001 2,082 2,125 2,214 
NIBE Stoves 1,250  900 830 1,042 1,239  705 696 746 904 
Elimination of Group transactions -353  -208 -213 -229 -291  -185 -187 -190 -206 
Group total 11,646  8,749 9,656 9,999 11,667  6,831 7,790 7,823 8,388 
            
Operating profit, business areas            
NIBE Climate Solutions 1,353  612 1,204 1,022 1,500  579 900 907 852 
NIBE Element 280  250 299 325 249  216 223 213 224 
NIBE Stoves 165  103 95 137 216  85 82 103 143 
Elimination of Group transactions -43  -24 -29 -19 -77  -15 17 -21 -40 
Group total 1,755  941 1,569 1,465 1,888  865 1,222 1,202 1,179 
            
 
 
Sales per business area, last nine quarters (SEK million) Each business area’s share of total sales 
(Q1, 2023) 
  
  
Operating profit per business area, last nine quarters (SEK million) Each business area’s share of total profit 
(Q1, 2023)

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

6 NIBE · INTERIM REPORT 1, 2023 
 
Market  
 
We see continued significant interest among end -consumers in both 
saving energy and finding fossil-free alternatives to natural gas and oil. 
This is driving the transition to a society that is less dependent on fossil 
fuels. We have long been convinced that heat pump technology is the 
best solution for energy-efficient and environmentally-friendly climate 
control of both small and large properties. Now the International Energy 
Agency (IEA) has confirmed this in a report stating that heat pumps are 
the best option for reduced climate impact. 
Heat pumps are now rapidly becoming established as the solution to re-
ducing energy consumption related to climate control of properties and to 
reducing emissions of carbon dioxide throughout Europe. We are therefore 
continuing to see very strong demand for all our heat pump solutions. The 
North American market has also been influenced by the development in  
Europe, and this is boosting demand for alternatives to current climate con-
trol products, which are primarily based on fossil fuels. 
Although we have sharply increased our production capacity, our 
delivery capability continues to be adversely affected by external cir-
cumstances such as shortages of a number of critical components. The 
majority of our sub -suppliers have seen a substantial improvement in 
delivery capability, however. 
To solve the climate change issue, in which climate control of prop-
erties is a major factor, and speed up the transition to a more sustaina-
ble society, the clear objective in a growing number of countries is that 
products that use fossil fuels such as oil and gas should be phased out 
in the long term, which is something that benefits our sector both in the 
short and long term. 
All our targeted markets in Europe continue to show very good 
growth. In the Netherlands, which has made a lot of progress in the 
transition to fossil-free fuels, the market development for heat pumps 
remains strong. The German market, which is important to us, is also 
showing very strong growth. This is an effect both of fa vourable state 
subsidies offered to encourage the replacement of existing oil and gas 
boilers with energy-efficient and environmentally-friendly heat pumps, 
and the urgent need to become less dependent on Russian oil and gas. 
All the Nordic markets are also growing, which benefits us as the market 
leader in all the Nordic countries. 
All our units in Eastern Europe are also reporting strong expan-
sion. Several of these markets, where we are well represented both 
through our own production of water heaters and  sales of heat 
pumps, are growing very rapidly as result of efforts to reduce de-
pendence on coal, gas and oil.  
The rate of growth in the Swedish domestic market for heat pumps 
increased slightly in the first quarter thanks to supply chain capacity in 
the industry as regards heat pumps having improved. Underlying de-
mand remains strong in the replacement products market, while new 
production of single -family houses has slowed down markedly. Our 
market position in both segments remains strong, which means we are 
well placed to adapt to changes in the market 
Operations  
 
We have remained fully focused on securing access to raw materials 
and components while also increasing capacity in our production units, 
which has resulted in significantly improved delivery capability. We have 
also seen a positive change in North America, where low unemployment 
has been a challenge when it comes to finding and retaining workers. 
During the first few months of the year we carried out major mar-
keting initiatives. In  February, we attended one of the world’s biggest 
international trade fairs, AHR Expo in Atlanta, USA. In March, we partic-
ipated in the international trade fair ISH in Frankfurt in Germany, where 
heat pumps and the R290 refrigerant were a recurring theme, really re-
inforcing the commitment to the ongoing transition to environmentally-
friendly and fossil -free climate control. Our participation boosts our 
profile as a market leader in energy-efficient, environmentally sustain-
able and intelligent product soluti ons for indoor comfort based on re-
newable energy.  
Demand is expected to continue to show strong growth and to meet 
this we are carrying out large investments in capacity at several of our 
European operations. At NIBE in Markaryd an additional new production 
line for air/water heat pumps has come on stream, doubling our pro-
duction capacity in this rapidly growing segment in Europe. In Germany, 
AIT has built a new heat pump plant to meet demand for heat pump 
production capacity. Alongside this, we are also expanding our capacity 
for production of pressure vessels, which are an important component 
in heat pump installations.  
We are continuously focusing major resources on product develop-
ment and the introduction of high-performance products in all applica-
tion areas. This is one of the basic requirements for continued expan-
sion. We have already launched the natural refrigerant R290 for two of 
our three heat pump product families and are ahead of EU requirements 
in this respect.  
Our brand new innovation center in Markaryd has partially come on 
stream, with more operations moving in gradually during the spring. The 
center will enable us to safeguard the quality of our future product de-
velopment and attract new development engineers. 
Operating profit improved shar ply as result of volume growth and 
improved materials supply, together with a continued cautious ap-
proach to fixed costs. Exchange rates also had a positive impact, while 
our own price increases have now taken almost full effect. In total, this 
means the operating margin improved significantly. 
 
    
 
Business area NIBE Climate Solutions 
 
 
 
 
Key figures  
Q1 
2023 
Q1 
2022 
Past 12 
months 
Full 
year 
2022 
Net sales SEK m 7,736 5,583 28,228 26,076 
Growth % 38.6 29.5 31.9 29.6 
of which acquired % 3.5 1.2 4.2 3.7 
Operating profit SEK m 1,353 612 5,079 4,338 
Operating margin % 17.5 11.0 18.0 16.6 
Assets SEK m 34,535 29,484 34,535 33,813 
Liabilities SEK m 6,543 4,933 6,543 6,504 
Investments in non-current 
assets SEK m 453 320 1,569 1,436 
Amortisation/Depreciation SEK m 229 210 893 875 
 
Sales and profit  
 
Sales for the period totalled SEK 7,736 million, com-
pared with SEK 5,583 million in the corresponding pe-
riod in the previous year. Of the increase in sales of SEK 
2,153 million, acquired sales accounted for SEK 197 
million, which means that organic growth was 35.1%. 
 
Operating profit for the period totalled SEK 1,353 
million, compared with SEK 612 million in the previous 
year. This equates to an operating margin of 17.5% 
compared with 11.0% for the previous year. The oper-
ating margin for the past 12 months is thus 18.0%.

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

NIBE · INTERIM REPORT 1, 2023 7 
Large presence at international ISH fair 
After four years, the large international trade fair ISH in Frankfurt returned in March. This time, the focus of the entire event was 
the ongoing transition in Europe to a fossil-free society and climate control of properties, with particular focus on heat pumps and 
natural refrigerants. NIBE Climate Solutions was well represented, with our companies showcasing energy-efficient and environ-
mentally friendly climate control solutions across a total of 1,300 square metres of exhibition space. We were also able to r eport 
that NIBE started using R290 propane, the refrigerant everyone was talking about, as far back as 1997. 
 
NIBE AB 
 
 CTC 
 
Rhoss 
 
 Argoclima 
 
AIT 
 
 Waterkotte 
 
TIKI 
 
 DZD

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

8 NIBE · INTERIM REPORT 1, 2023 
 
Market  
 
The unprecedented growth in demand for wood-fired stove products in 
Europe continued in the first quarter of the year. Although energy prices 
have returned to more normal levels, the unsettled external environ-
ment has been a strong driver behind the trend to invest in an auxiliary 
heat source to secure heat supply ahead of next winter too. 
Underlying demand in Scandinavia remained very strong, but the 
continued supply chain challenges throughout the industry resulted in 
deliveries of products to customers not reaching the expected level,  
although we were able to increase our production volumes. While there 
is significant interest in investing in a stove product, new production of 
single family houses is falling, which is having the opposite effect on 
demand. 
In Germany, one of the markets reporting the largest growth in 2022, 
demand remains strong. It is clear that the dependence on gas needs to 
be reduced, which means interest in alternative heat sources is grow-
ing. Demand is also driven by government requirements under which 
use of older fireplaces that do not meet applicable Ecodesign require-
ments will not be permissible in future. 
In the UK too, demand for wood-fired products remains strong, with 
the high energy costs in 2022 providing an incentive to invest in mod-
ern, more efficient stoves. Demand for gas-fired and electric stoves was 
weaker. In the same way, rising pellets prices in France resulted in de-
mand for pellets -fired stoves falling, at the same time as demand for 
wood-fired products rose sharply. 
In North America, demand for gas -fired products has declined and 
the total market is now back to the more normal levels seen before the-
pandemic. Demand for wood-fired products remains good as these are 
a reliable auxiliary heat source in case of malfunction of the ordinary 
heating system in the home. 
 
Operations  
 
Extremely high inflow of orders for wood-fired products in the past few 
years has resulted in unusually large backlogs of orders throughout the 
industry, which in turn has resulted in long delivery times for new or-
ders. We are working very hard to further increase vol umes at our pro-
duction plants but the continued shortage of key components from a 
small number of sub -suppliers is making it difficult to meet customer 
demand in the short term. We expect to see a gradual improvement over 
the year, however. In North America, production capacity for gas -fired 
products has been adjusted to match prevailing market conditions.
 
The first large trade fair for stove products took place in April. It was 
held in Germany and was very well received by visitors. Several of our 
brands were represented at the fair to meet customers in person and 
launch new products. Contura, our Swedish brand, presented its brand 
new future concept, Contura Zero. This concept means that products 
can have built-in cleaning equipment that significantly reduces particle 
emissions without adversely impacting the design and flame visibility of 
the products. 
Shortly after the turn of the year, we acquired 65% of the shares in 
Miles Industries of Canada, a family -owned company whose products 
are sold under the well-known Valor brand. The company has built up a 
strong network of retailers in both Canada and the USA over several 
decades, resulting in a very strong and well-established market position 
in North America. In total, we now have a very strong platform in North 
America for continued profitable growth. 
Both our operating profit and operating margin increased in the first 
quarter of the year as a result to higher sales volumes together with 
essential price increases, favorable exchange rates and a continued 
cautious approach to fixed costs.
 
    
 
Business area NIBE Stoves 
 
 
 
Key figures  
Q1 
2023 
Q1 
2022 
Past 12 
months 
Full 
year 
2022 
Net sales SEK m 1,250 900 4,362 4,011 
Growth % 39.0 27.6 34.4 31.5 
of which acquired % 21.5 0.0 11.1 5.4 
Operating profit SEK m 165 103 613 551 
Operating margin % 13.2 11.5 14.1 13.7 
Assets SEK m 6,143 4,087 6,143 5,000 
Liabilities SEK m 1,158 661 1,158 1,042 
Investments in non-current 
assets SEK m 53 16 160 123 
Amortisation/Depreciation SEK m 44 32 162 150 
 
Sales and profit  
 
Sales for the period totalled SEK 1,250 million, com-
pared with SEK 900 million for the corresponding pe-
riod last year. Of the increase in sales of SEK 350 mil-
lion, acquired sales accounted for SEK 193 million, 
which means that organic growth was 17.5%.  
Operating profit for the period totalled SEK 165 
million, compared with SEK 103 million in the previous 
year. This equates to an operating margin of 13.2% 
compared with 11.5% for the previous year. This 
means that the operating margin for the past 12 
months is 14.1%. 
 
    
 
In April, CONTURA participated in the new trade fair – WORLD OF FIREPLACES -  
in Leipzig in Germany, which attracted more than 200 exhibitors from our indus-
try. Contura, which represents a completely new trade fair concept, launched a 
brand new product concept focusing on technology of the future. The trade fair 
was well attended and there was a wonderful atmosphere in and around 
Contura’s stand.

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

NIBE · INTERIM REPORT 1, 2023 9 
 
Market  
 
Demand in the majority of  the business area’s market segments re-
mained strong in the first quarter of the year. However, both demand 
and deliveries were still affected by the various disruptions in interna-
tional supply chains. Although this situation has improved compared 
with the previous year, it still has a significant impact on us and requires 
significant flexibility and preparedness, as well as gradual adaptation of 
operations.  
Besides the generally strong demand, we saw a strong increase in 
several of our market segments, particularly products linked to sustain-
ability, renewable energy and energy -efficient solutions for climate 
control, such as heat pumps. This applies both to products for private 
and commercial use.  
The ambition to reduce greenhouse gas emissions also means  that 
the number of industrial projects based on electric heating is growing 
steadily. Demand for various kinds of energy storage solutions is also 
growing. The majority of these solutions involve some form of electric 
heating and control. Demand for produ cts for the wind power industry 
declined as a result of a significant drop in the number of projects in 
2023, largely due to delays in permitting processes. However, the  
assessment is that this market will improve significantly next year. 
Demand for produ cts in the consumer segment, such as domestic 
appliances and direct electric heating, declined compared with the pre-
vious year. This was due to a combination of lower consumer demand 
and inventory adjustments by our customers. The market for commer-
cial products, for example catering equipment and commercial coffee 
machines, also reported continued strong demand. 
Electrification of vehicles means new business opportunities for us, 
both with regard to passenger cars and commercial vehicles. 
Demand in the semiconductor industry has fallen since the USA in-
troduced trade restrictions in respect of exports of advanced technol-
ogy to China at the end of 2022, as the same time as demand in certain 
product segments declined. Demand is expected to pick up in the long 
term, however, a trend that will be further strengthened by future in-
vestments in expansion of the semiconductor industry in both North 
America and Europe, in order to reduce dependence on Asia in this im-
portant technology area. 
Operations  
 
To meet increased demand, we have continued to increase production 
capacity at our units both through recruitment and investments in ca-
pacity in the segments reporting strong organic growth. At the same 
time, we are reducing production capacity in segments with falling de-
mand. In parallel with this, we have implemented additional investments 
in robotics and automation as well as productivity improvement 
measures in order to maintain competitiveness and keep the operating 
margin at the target level of 10%.  
Sharp increases in the price of materials, services and energy, as 
well as rising freight costs, have also forced us to introduce successive 
price rises of our own to compensate for this development. Overall, our 
customers have been understanding and have accepted these price ad-
justments. 
Exchange rates remain volatile, with a considerable effect on pricing 
and competitiveness. In this situation, our international presence with 
production units in different currency zones gives us a clear advantage. 
In general, there are labor shortages in many of the countries where we 
have production units. 
Despite falling demand in certain key product segments, overall 
growth has been strong and we have been able to increase our operat-
ing profit, thanks to good control of fixed costs and rapid adjustment of 
each business area to the prevailing demand and delivery situation. 
 
    
 
Business area NIBE Element 
 
 
Key figures  
Q1 
2023 
Q1 
2022 
Past  
12 
months 
Full 
year 
2022 
Net sales SEK m 3,013 2,474 11,464 10,925 
Growth % 21.8 23.7 28.9 29.7 
of which acquired % 3.0 1.7 2.2 1.9 
Operating profit SEK m 280 250 1,153 1,123 
Operating margin % 9.3 10.1 10.1 10.3 
Assets SEK m 14,419 11,764 14,419 14,100 
Liabilities SEK m 2,485 2,085 2,485 2,276 
Investments in non-current 
assets SEK m 131 143 597 609 
Amortisation/Depreciation SEK m 118 103 474 459 
 
Sales and profit  
 
Sales for the period totalled SEK 3,013 million, com-
pared with SEK 2,474 million in the corresponding 
period in the previous year. Of the increase in sales 
of SEK 539 million, acquired sales accounted for 
SEK 73 million, which means that organic sales in-
creased by 18.8%.  
Operating profit for the period totalled SEK 280 
million, compared with SEK 250 million in the previ-
ous year. This equates to an operating margin of 
9.3% compared with 10.1% for the previous year. 
This means that the operating margin for t he past 
12 months is 10.1%. 
 
    
 
We are seeing strong interest in electric heat solutions for industrial pro-
cesses. The demand is due to businesses wishing to make the transition from 
fossil fuels to electric heating in order to reduce their CO2 emissions. The 
heat solution shown above is a customized product by our Danish company 
JEVI for drying of raw materials within the food industry.

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

10 NIBE · INTERIM REPORT 1, 2023 
Condensed income statement 
 Group  Parent 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Past 12 
months 
Full year 
2022  Jan-Mar 
2023 
Jan-Mar 
2022 
Net sales 11,646 8,749 42,968 40,071  15 16 
Cost of goods sold -7,748 -6,173 -29,037 -27,462  0 0 
Gross profit 3,898 2,576 13,931 12,609  15 16 
Selling expenses -1,505 -1,165 -5,261 -4,921  0 0 
Administrative expenses -777 -594 -2,831 -2,648  -62 -35 
Other operating income 139 124 838 823  0 0 
Operating profit 1,755 941 6,677 5,863  -47 -19 
Net financial items -101 -35 -254 -188  59 -10 
Profit after net financial items 1,654 906 6,423 5,675  12 -29 
Tax -380 -226 -1,434 -1,280  0 0 
Net profit 1,274 680 4,989 4,395  12 -29 
        
Net profit attributable to Parent         
shareholders 1,270 662 4,959 4,351  12 -29 
Net profit attributable to non-                   
controlling interest 4 18 30 44  0 0 
Net profit 1,274 680 4,989 4,395  12 -29 
Includes amortisation/depreciation     
according to plan as follows 391 345 1,530 1,484  0 0 
Net profit per share before and after     
dilution, SEK 0.63 0.33 2.46 2.16  0 0 
        
        
Statement of comprehensive income 
Net profit 1,274 680 4,989 4,395  12 -29 
Other comprehensive income        
        
Items that will not be reclassified to 
profit or loss 
       
Actuarial gains and losses in retirement 
benefit plans 
0 0 160 160  0 0 
Tax 0 0 -34 -34  0 0 
 0 0 126 126  0 0 
        
Items that may be reclassified to profit 
or loss        
Cash flow hedges -1 18 -19 0  0 0 
Hedging of net investments -21 -5 -107 -91  0 0 
Exchange differences on translation of 
foreign operations 92 436 2,779 3,123  0 0 
Tax 18 -32 -122 -172  0 0 
 88 417 2,531 2,860  0 0 
Total other comprehensive income 88 417 2,657 2,986  0 0 
Total comprehensive income 1,362 1,097 7,646 7,381  12 -29 
        
Comprehensive income attributable to 
Parent shareholders 
1,358 1,076 7,601 7,319  12 -29 
Comprehensive income attributable to 
non-controlling interest 
4 21 45 62  0 0 
Total comprehensive income 1,362 1,097 7,646 7,381  12 -29

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

NIBE · INTERIM REPORT 1, 2023 11 
Condensed balance sheet 
 Group  Parent 
(SEK million) 31 Mar 2023 31 Mar 2022 31 Dec 2022  31 Mar 2023 31 Mar 2022 31 Dec 2022 
Intangible assets 23,082 20,696 22,568  0 0 0 
Property, plant and equipment 9,002 6,422 8,273  0 0 0 
Financial assets 1,051 642 1,001  18,420 16,534 18,162 
Total non-current assets 33,135 27,760 31,842  18,420 16,534 18,162 
Inventories 11,334 7,435 10,191  0 0 0 
Current receivables 7,546 5,886 7,144  120 96 379 
Investments in securities, etc 191 164 190  0 0 0 
Cash and bank balances 3,854 4,036 4,627  0 102 0 
Total currents assets 22,925 17,521 22,152  120 198 379 
Total assets 56,060 45,281 53,994  18,540 16,732 18,541 
        
Equity 29,335 22,754 27,973  9,839 9,047 9,827 
Non-current liabilities, non-interest 
bearing 6,201 5,307 5,869  1,520 547 1,500 
Non-current liabilities, interest bearing 7,091 7,662 6,399  4,251 5,500 4,250 
Current liabilities, non-interest bearing 8,823 6,701 8,795  80 38 114 
Current liabilities, interest bearing 4,610 2,857 4,958  2,850 1,600 2,850 
Total equity and liabilities 56,060 45,281 53,994  18,540 16,732 18,541 
 
Key figures 
  Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022   
Growth % 33.1 28.1 30.0 
Operating profit SEK m 1,755 941 5,863 
Operating margin % 15.1 10.8 14.6 
Profit margin % 14.2 10.4 14.2 
Investments in non-current assets, including acquisitions SEK m 1,341 492 3,745 
Available cash and equivalents SEK m 4,543 4,624 5,441 
Working capital incl. cash and bank balances SEK m 14,102 10,820 13,357 
as share of net sales % 32.8 33.0 33.3 
Working capital excl. cash and bank balances SEK m 10,057 6,620 8,540 
as share of net sales % 23.4 20.2 21.3 
Interest-bearing liabilities/Equity % 39.9 46.2 40.6 
Equity/assets ratio % 52.3 50.3 51.8 
Return on capital employed % 17.7 14.2 17.7 
Return on equity % 17.7 15.6 18.1 
Net debt/EBITDA times 0.9 1.1 0.9 
Interest coverage ratio times 10.9 11.7 10.1 
 
Data per share 
  
Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Net earnings per share (total 2,016,066,488 shares) SEK 0.63 0.33 2.16 
Equity per share SEK 14.53 11.17 13.86 
Closing day share price SEK 117.80 105.05 97.10

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

12 NIBE · INTERIM REPORT 1, 2023 
Sales by geographical region 
(SEK million) NIBE Climate 
Solutions 
NIBE             
Element 
NIBE          
Stoves 
Eliminations Total 
  
Nordic region 2,074 517 276 -228 2,639 
Europe (excl. Nordic region) 3,828 1,129 589 -119 5,427 
North America 1,665 1,088 357 -6 3,104 
Other countries 169 279 28 0 476 
Total 7,736 3,013 1,250 -353 11,646 
 
Time of accounting for sales 
(SEK million) NIBE Climate 
Solutions 
NIBE            
Element 
NIBE            
Stoves 
Eliminations Total 
  
Deliverables taken up as revenue once 7,573 3,013 1,250 -353 11,483 
Deliverables taken up as revenue gradually 163 0 0 0 163 
Total 7,736 3,013 1,250 -353 11,646 
 
 
SERVICE CONTRACTS 
For certain products in Climate Solutions, NIBE offers customers the opportunity to sign one-year service contracts, under which NIBE undertakes to perform 
maintenance service and remedy certain defects that are not covered by the warranty provided. The sc ope of defects cannot be reliably predicted, so pricing 
is based on experience. Payment is received from customers annually in advance, so deferred income will be taken up as revenue gradually over the coming 12-
month period. 
 
EXTENDED WARRANTY PERIOD CONTRACTS 
For certain products in Climate Solutions, NIBE offers customers the opportunity to sign contracts for warranty periods that exceed those provided as standard. 
Standard warranty periods depend both on the type of product and the market in question. The longest contracts expire within six years. The scope of defects 
cannot be reliably predicted, so pricing is based on experience. Payment is received from customers on delivery of goods. Deferred income will be taken up  up 
as revenue gradually over the coming six-year period. 
 
 
Financial instrument measured at fair value 
(SEK million) 31 Mar 
2023 
31 Mar 
2022 
31 Dec 
2022 
Current receivables    
Currency futures 3 13 10 
Commodity futures 0 7 3 
Total 3 20 13 
    
Current liabilities and provisions, 
non-interest bearing    
Currency futures 0 0 11 
Commodity futures 2 0 0 
Total 2 0 11 
 
No instruments have been offset in the statement of financial position, so all 
instruments are recognised at their gross value. For a detailed account of the 
measurement process, see Note 29 in the Annual Report for 2022. For other 
consolidated financial assets and liabilities, the carrying amounts represen t 
a reasonable approximation of their fair value. A specification of the financial 
assets and liabilities involved is given in Note 29 in the Annual Report for 
2022. 
 
Condensed cash flow statement 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Cash flow from operating activities 1,419 939 5,800 
Change in working capital -1,027 -1,084 -3,186 
Investing activities -1,066 -492 -2,778 
Financing activities -105 34 -151 
Exchange difference in cash and 
equivalents 7 57 386 
Change in cash and equivalents -772 -546 71 
 
Change in equity – summaries 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Opening equity 27,973 21,657 21,657 
Effect of applying IAS29* 0 0 186 
Adjusted opening equity 27,973 21,657 21,843 
Shareholders’ dividend 0 0 -1,008 
Dividend to non-controlling interest 0 0 -1 
Change in non-controlling interest 0 0 -242 
Comprehensive income for the     
period 1,362 1,097 7,381 
Closing equity 29,335 22,754 27,973 
*IAS 29 has been implemented - for more information , see Accounting 
policies.

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

NIBE · INTERIM REPORT 1, 2023 13 
Alternative performance 
measures 
 
 
Alternative performance measures are financial measures that 
are used by the company’s management and by investors to 
evaluate the Group’s profit and financial position using calcula-
tions that cannot be directly derived from the financial state-
ments. The alternative performance measures provided in this 
report may be calculated using methods  that differ from those 
used to produce similar measures that are used by other com-
panies. 
 
Net investments in non-current assets 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Acquisition of non-current 
assets 1,350 498 3,767 
Disposal of non-current     
assets -9 -6 -22 
Net investments in non-
current assets, including 
acquisitions 
1,341 492 3,745 
 
Available cash and cash equivalents 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Cash and bank balances 3,854 4,036 4,627 
Investments in securities, 
etc. 191 164 190 
Unutilised overdraft facilities 498 424 624 
Available cash and cash 
equivalents 4,543 4,624 5,441 
 
Working capital, including cash and bank balances 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Total current assets 22,925 17,521 22,152 
Current liablities and provi-
sions, non-interest bearing 
-8,823 -6,701 -8,795 
Working capital, including 
cash and bank balances 14,102 10,820 13,357 
Net sales, past 12 months 42,968 32,750 40,071 
Working capital, including 
cash and bank balances, in 
relation to net sales, % 
32.8 33.0 33.3 
 
 
Working capital, excluding cash and bank balances 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Inventories 11,334 7,435 10,191 
Current receivables 7,546 5,886 7,144 
Current liablities and provisions, non-interest 
bearing -8,823 -6,701 -8,795 
Working capital, excluding cash and bank 
balances 
10,057 6,620 8,540 
Net sales, past 12 months 42,968 32,750 40,071 
Working capital, excluding cash and bank 
balances, in relation to net sales, % 
23.4 20.2 21.3 
 
Return on capital employed    
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Profit after net financial items, past 12 
months 6,423 4,391 5,675 
Financial expenses, past 12 months 708 238 626 
Profit before financial expenses 7,131 4,629 6,301 
Capital employed at start of period 39,330 31,977 31,977 
Capital employed at end of period 41,037 33,273 39,330 
Average capital employed 40,184 32,625 35,654 
Return on capital employed, % 17.7 14.2 17.7 
 
Return on equity 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Profit after net financial items, past 12 
months 6,423 4,391 5,675 
Standard tax rate, % 20.6 20.6 20.6 
Profit after net financial items, after tax 5,100 3,486 4,506 
Of which attributable to Parent shareholders 5,070 3,421 4,462 
Equity at start of period 27,935 21,438 21,438 
Equity at end of period 29,293 22,514 27,935 
Average equity 28,614 21,976 24,687 
Return on equity, % 17.7 15.6 18.1

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

14 NIBE · INTERIM REPORT 1, 2023 
 
Net debt/EBITDA 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Non-current liabilities and provisions,           
interest bearing 7,091 7,662 6,399 
Current liabilities and provisions, interest 
bearing 4,610 2,857 4,958 
Cash and bank balances -3,854 -4,036 -4,627 
Investments in securities, etc. -191 -164 -190 
Net debt 7,656 6,319 6,540 
Operating profit, past 12 months 6,677 4,544 5,863 
Depreciation/amortisation and impairment, 
past 12 months 1,561 1,427 1,597 
EBITDA 8,238 5,971 7,460 
Net debt/EBITDA excluding revaluation of 
additional considerations, multiple 0.9 1.1 0.9 
 
 
Interest coverage ratio 
(SEK million) Jan-Mar 
2023 
Jan-Mar 
2022 
Full year 
2022 
Profit after net financial 
items 1,654 906 5,675 
Financial expenses 167 85 626 
Profit before financial        
expenses 
1,821 991 6,301 
Interest coverage ratio, 
multiple 10.9 11.7 10.1 
 
  
 
The information in this report has not been reviewed by the company’s auditors.  
For further information on definitions, please refer to the company’s Annual Report for 2022. 
 
 
The interim report provides a fair review of the business, financial position and results of the Parent and the Group and describes 
the principal risks and uncertainties facing the Parent and companies in the Group.  
 
Markaryd, Sweden, May 16, 2023 
 
 Hans Linnarson 
Chairman of the Board 
Georg Brunstam 
Director 
Eva Karlsson 
Director 
Jenny Larsson 
Director 
 Gerteric Lindquist 
Managing Director and CEO 
Anders Pålsson  
Director 
Eva Thunholm 
Director 
 
 
 
Accounting policies  
 
Risks and uncertainties  
 
NIBE Industrier’s  consolidated accounts are prepared in accordance with International  
Financial Reporting Standards (IFRS). NIBE Industrier’s interim report for the first quarter 
of 2023 has been prepared in accordance with IAS 34 Interim Financial Reporting Disclo-
sures in accordance with IAS 34 16A are presented in the financial statements and related 
notes as well as in other parts of the interim report. 
For the Group, the accounting policies applied in this report are the same as those de-
scribed on pages 100–139 of the Annual Report for 2022. The Group started to apply IAS 
29 Financial Reporting in Hyperinflationary Economies in 2022 as a result of its operations 
in Turkey. Application had an effect on opening balance equity in 2022 as comparative 
figures are not restated. 
Reporting for the Parent follows the Swedish Annual Accounts Act and the Swedish 
Financial Accounting Standards Board’s recommendation RFR 2 Reporting for Legal Enti-
ties. 
Related party transactions have taken place to the same extent as in the previous year 
and the same accounting policies have been applied as those described on page 101 of 
the company’s Annual Report for 2022. 
 
NIBE Industrier is an international industrial 
group that is represented in around 40 
countries. As such, it is exposed to several 
business and financial risks. Risk manage-
ment is, therefore, an important process rel-
ative to the goals that the company has set 
up. Throughout the NIBE Group, efficient 
risk management routines are an ongoing 
process within the framework of the Group’s 
operational management and a natural part 
of the continual follow -up of activities. It is 
our opinion that no significant risks or un-
certainties have arisen in addition to those 
described in NIBE Industrier’s Annual Report 
for 2022.

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

NIBE · INTERIM REPORT 1, 2023 15 
 
Number of shares traded per trading day in thousands 
 
 
NIBE Industrier AB is obliged by Swedish law (the Securities Market Act and/or the Financial Instruments Trading Act) to publish the informat ion in 
this interim report. This information was made available to the media for publication at 08.00 (CEST) on May 16, 2023. 
 
Please email any questions to: 
Gerteric Lindquist, MD and Group CEO, gerteric.lindquist@nibe.se  
Hans Backman, CFO, hans.backman@nibe.se 
NIBE 
shares 
 
NIBE’s class B shares are listed on the NASDAQ Nordic Large Cap list in Stockholm, with 
a secondary listing on the SIX Swiss Exchange in Zurich. The NIBE share’s closing price 
on March 31, 2023 was SEK 117.80. 
During the first three months of 2023, NIBE’s share price rose by 21.3%, from SEK 
97.10 to SEK 117.80. In the same period, the OMX Stockholm PI (OMXSPI) increased by 
7.8%. 
At the end of March 2023, the market capitalization of NIBE, based on the latest price 
paid, amounted to SEK 237,493 million. 
A total of 199,344,086 NIBE shares were traded, which corresponds to a share turn-
over of 39.5% in the first quarter of 2023. 
All figures were restated following the 4:1 splits implemented in 2003, 2006, 2016 
and May 2021, and the dilution effect of the preferential rights issue in October 2016.

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

NIBE Group 
– an international Group with companies and a 
presence worldwide  
 
 
NIBE Group is an international organization that contributes to a lower carbon footprint 
and better utilization of energy. In our three business areas – Climate Solutions, Element 
and Stoves – we develop, manufacture and market a wide range of environmentally-
friendly, energy-efficient solutions for indoor climate comfort in all types of properties, 
plus components and solutions for intelligent heating and control in industry and infra-
structure.  
 
Since its beginnings in the town of Markaryd in the province of Småland 70 years ago, 
NIBE has grown into an international company with an average of 21,300 (20,400) em-
ployees and an international presence. From the very start, the company has been driven 
by a strong culture of entrepreneurship and a passion for corporate responsibility. It’s 
success factors are long-term investments in sustainable product development and 
strategic acquisitions. Combined, these factors have brought about strong, targeted 
growth, which generated sales of just over SEK 40 billion (SEK 30 billion) in 2022.  
 
NIBE has been listed under the name NIBE Industrier AB on the Nasdaq Nordic 
 Large Cap list since 1997, with a secondary listing on the SIX Swiss Exchange since 2011.  
 
 
 
NIBE Industrier AB (publ) 
Box 14, 285 21 MARKARYD 
Tel +46 433-27 30 00 
www.nibe.com 
Corporate ID no.: 55 63 74 – 8309

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