Page 1

bhg . Interim report : 1 January - 31 March 2021 Sharp growth - Strong organic development and a continued high acquisition rate • HIGHLIGHTS Net sales increased 57.7 % to SEK 2,567.8 million ( 1,628.4 ) . Organic growth was 36.5 % • Gross profit increased 66.3 % to SEK 699.3 million ( 420.5 ) , with a gross margin of 27.2 % ( 25.8 ) • Adjusted EBIT amounted to SEK 183.7 million ( 80.0 ) , corresponding to an adjusted EBIT margin of 7.2 % ( 4.9 ) • Operating income amounted to SEK 168.6 million ( 69.2 ) , corresponding to an operating margin of 6.6 % ( 4.2 ) Key events during and after the period 2021 / Q1 • Cash flow from operating activities amounted to SEK 119.5 million ( 147.9 ) • Net profit for the period amounted to SEK 115.3 million ( 46.2 ) , an increase of 149.4 % on the prior year • Earnings per share amounted to SEK 0.97 ( 0.43 ) before dilution and SEK 0.96 ( 0.43 ) after dilution • A directed share issue was completed on 3 February , generating proceeds of SEK 1.6 billion for BHG Group • Acquisition of : 51 % of IP Agency , a leading online company specialising in leisure products ( announced on 5 February ) . The acquisition further strengthened BHG's share of proprietary brands 100 % of Svenssons i Lammhult through the subsidiary Nordic Nest ( announced on 19 March and conditional upon the approval of Swedish competition authorities ) . The acquisition strengthened Nordic Nest's position in premium brands 94 % of Hafa Bathroom Group ( announced on 6 April and conditional upon the approval of Swedish competition authorities ) . The acquisition further strengthened BHG's leading position in the bathroom segment and expanded its portfolio of proprietary brands • On 4 March , it was announced that Maria Morin would assume the newly established position of Head of HR , Communications and ESG and become part of BHG Group's management team FINANCIAL SUMMARY Jan - Mar Jan - Dec SEKm ( if not otherwise stated ) Net sales Gross profit Gross margin ( % ) 2021 2020 A % 2020 2,567.8 1,628.4 57.7 8,968.2 699.3 420.5 66.3 2,330.8 27.2 25.8 1.4 p.p. 26.0 Adjusted EBIT * Adjusted EBIT margin ( % ) Operating income Operating margin ( % ) Net profit for the period 183.7 80.0 129.8 700.8 7.2 4.9 2.2 p.p. 168.6 69.2 143.6 7.8 657.8 6.6 4.2 2.3 p.p. 7.3 115.3 46.2 149.4 420.3 Earnings per share before dilution , SEK 0.97 0.43 125.6 3.87 Earnings per share after dilution , SEK 0.96 0.43 123.3 3.80 Cash flow from operating activites 119.5 147.9 -19.2 994.3 Net debt ( + ) / Net cash ( - ) 173.9 500.0 -65.2 1,796.0 Refer to " Relevant reconciliations of non - IFRS alternative performance measures ( APMs ) " on page 28 of this report for a more detailed description . BHG GROUP AB ( PUBL ) | 559077-0763 1