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1 Interim Report for Nilörngruppen AB (publ) ar , y - M anuar ch 2019 1 Q J M y J anuar ar ch Period - Order bookings amounted to MSEK • (20 2 ) . 195 • Consolidated revenue in SEK increased by 17 p e r cent t o MSEK 1 78 ( 52 ) . 1 • Adjusted for currency effects, revenue amounted to MSEK 165 (152), equivalent to underlying organic growth of e rcent . 9 p 1 • Operating profit amounted to MSEK 15 . ( 1 3 . 4 ) . . • . 0 ( 9 11 3 ) . Profit for the period amounted to MSEK Earnings per share amounted to SEK 0 . 97 ( 0 . 82 ) . • 4 Cash flow from o perating ac t ivities amounted to MSEK 24 . • ( − 5 . 4 ) . Significant events during the quarter Currency effects affected revenue positively by MSEK • 3 during the quarter. 1 • A positive calend a r effect due to the Easter holidays. • Accounting according to IFRS 16 has a certain effect on the balance sheet total and profit. detailed description of these effects. Refer to Note 3 for a 1

2 PRESIDENT’S STATEMENT existing customers, we are focusing on attra cting new customers Dear Shareholders , and we The year has started well for the business and we see increases in several of our markets. Revenue increased by 17 percent to MSEK have several interestin g projects under development, even though , adjusted for currency effects , and 178 the underlying organic the decision . making process in some cases is slow - Since the Easter holiday was later this year growth was . rcent e p 9 than last, we are likely to have seen a calendar effect. Nilörn is continuing its efforts in RFID and several customers have the ambition of transitioning to RFID. We see continuing in Great Britain, at the same time as the unrest German market is showing strong development. The development P ction operations in Bangladesh continue to do well, with rodu in Scandinavia, our home market, was also positive, as well as in increased demand , and as previously announced we will invest in Italy and Spain, where we have attracted some major trademarks more looms and a ne , w printing press in order to increase capacity during the quarter. Despite a somewhat uncertain overall market, and with the ambition of creating a higher level of service in this this augurs for a fine development going forward. market. in some markets pricing pressure in certain am observing I due to Nilörn us c fo on sustainability continues. This has given us an ’ s tougher market conditions. During the quarter we accepted a of additional competitive advantage, where an increasing number of and this had a negative effect on our prices, few orders at lower customers are realising the importance of choosing sustainable gross margin. We are also happy to report that our efforts to This has to a solutions in terms of materials and structure. led capture new customers are paying off and it is my clear conviction a e we are attr situation wher cting a growing number of ”outdoor” oncept c ’ Nilörn hat t . s stands strong customers, many of whom have been prioritising environment and sustainab . lity for a long time i Nilörn has continued to invest in our IT integr ated solutions and a owing number of customers appreciate a simple, automated r g We are well have a , d trong offer and even though we positione s to become more efficient and to lower ordering process in order can see a more challenging market climate going forward, we have . costs during the good prospects for creating profitable growth . remainder of the year Our growth with existing customers is continuing as many of them from Nilörn, which creates synergie s both in buy whole concept terms of lead times and costs. Aside from taking care of our Claes af Wetterstedt President and CEO 2

3 ch anuar - M ar J y Period Order bookings . (20 2 ) bookings amounted to MSEK 195 Order ) Profit for the period . 3 ( .3 3 Taxes amounted to MSEK 0 . 3) 11 amounted to MSEK . 0 (9 . and earnings per share came in Net revenue 97 (0 . 0 at SEK . 82). Revenue Revenue increased by 17 percent to MSEK 178 (152). usted for currency effects amounted to MSEK 165 (152), j ad Cash flow, capital investments, financing and liquidity 9 p equival e nt to underlying organic growth of e rcent. HKD . Cash flow from operating activities amounted to MSEK 24 4 against rcent e 17 p strengthened by - ative to the year re SEK l − The introduction of IFRS 16 has affected positively by 4). . 5 ( ago period. This had a major effect on revenue since a SEK 3.9 million for the period . significant portion of ’ revenue is denominated in Nilörn s TRY weakened by 17 percent, but the HKD. At the same tim activities amounted to MSEK − Cash flow from invest 7 . 9 ment denominated effect thereof is smaller due to lower TRY - t in a new is attributable to invest m e n ( − 1,6 ) , where MSEK − 1 . 5 revenue. The introduction of IFRS 16 has affected enterprise system. negatively . 6 by SEK 3. million for the period Since the Group is relatively well balanced in terms of currencies in other respects, this had a marginal effect on 46 debt at the end of the period amounted to MSEK Net of 1, . earnings. 16, which transition to the new leasing standard, IFRS MSEK by liabilities bearing - interest increased . 61 5 . Starting in 2019, Nilörn recognizes discounts to customers as Comparable numbers, not including new accounting treatment lower revenue, rather than as Other operating expense in prior according to IFRS 16, is net cash and cash equivalents of MSEK years. The numbers for prior years have been recalculated to 4 (2 7). . 15 . ensure correct comparability. The effect hereof during the first adjustment of revenue by MSEK 4.1, quarter was a downward E quity while Other operating expense is MSEK 4.1 lower than than 96 Consolidated equity amounts to MSEK 1 . 4 and has increased previously reported. For the full year 2018 the adjustment was . by MSEK 6 since the turn of the year . 5 The increa s e is 1 MSEK 17.2 for revenue as well as other external expenses. attributable to the p 11 . 0 and the riod’s profit of MSEK e ted in the s Prior years have also been adju table of quarterly translation difference for the period of MSEK 4 . 6 . The income statements . slation difference is the net effect of recalculating equity in n tra - Swedish subsidiaries to SEK and was affected the non Gross margin . positively by the weaker Swedish krona ) p . 41 The gross margin was ( 4 4 , 2 e rcent . The gross profit 7 margin was negatively affected by customer and product mix Person nel in a quarter with normally lower revenue. Also increased 4 number of employees in the Group was g e ) ( 96 The aver a 482 pricing pressure from economically vulnerable customers, ( were women ) 2 10 relative to the situation at the of whom 2 14 ( most of which are retail chains. one percent of the total number of - Fifty ). turn of the year employees, 252 persons, are engaged in production and and depreciation Costs storage. External costs decreased by MSEK of 3 9 MSEK , ) 4 . 18 ( 6 . . 14 which is attributable to changed accounting treatment of operating leases in accordance with Person . IFRS16 nel costs Transa ctions with closely related parties . , affected negatively in the increased to MSEK 39 . 2 (34 1) No transactions between the Nilörn Group and closely related amount of MSEK 1.1 by changes in currency rates and by an parties occurred during the period under review that had an increase in the number of employees. effect on The Group’s profit and financial position. The Parent Company’s transactions with subsidiaries refer to design, Most of the increase 5 Depreciation increased to MSEK . 8 (1 . 7). opment, IT and other services product devel . . is due to the effect of IFRS 16 with an impact of MSEK 3 . 6 any p Parent Com Operating profit The Parent Company’s operations largely consist of handling 3 1 Operating profit amounted to MSEK 1 5 which . 1 ( . 4 ) , - group wide functions, such as branding and design, product e . 8 ( 8 . 8 translates to an operating margin of The ) p 5 rcent . development, finances, administration, information and IT. lower operating margin for the quarter is due to the lower employees was 22 (22). The average number of operating margin. Refer to Gross profit paragraph above. 4 . 5 ( ). 2 The Net revenue for the period amounted to MSEK 6 . Net finance items, taxes and profit for the period 0,5 ( − 0 ,3 ) and the result operating result amounted to MSEK − 1 . 0) and Net finance items amounted to MSEK − 0 . 8 ( − after taxes was MSEK . . ) 7 ( . – 0 0 7 − accounting according to IFRS 16 affected financial costs by 5 MSEK - 0 . . s and uncertainty factors Risk 3

4 y end Report - Year 20 20 Given its international operations, Nilörngruppen is always F 2 1 • ebruar subject to a variety of financial risks. The significant risks and uncertainty factors facing Nilörngruppen are currency risks, The information herein is such that Nilörngruppen is under obligation to publish in accordance with the EU Market Abuse political risks in individual countries, credit risks and IT 8 y as described in Note 2 of Nilörngruppen’s 201 securit Regulation. The information herein was provided by the persons named below for publication at 8:00 a.m., 3 contact Annual Report. The risks reported are deemed to be essentially unchanged. May 2019. The President & CEO hereby confirms that this inter im report Review report provides a fair overview of the operations of the This report has not been subject to review by the Company’s position and Company’s and the Group’s operations, financial auditors. results, and describes significant risks and factors of uncertainty facing the Company and the companies in the C alendar Group. J ul y 2019 • 19 Interim Report Q2 • 25 Oc tober 2019 Interim Report Q3 , 3 May 2019 BORÅS PUBL NILÖRNGRUPPEN ) AB ( Claes af Wetterstedt Pre sident and CEO : F OR FURTHER INFORMATION CONTACT President & CEO Claes af Wetterstedt CFO Krister Magnusson Tel ephone : +46 - 33 - 700 88 30 Tel ephone : +46 - 33 - 700 88 52 Mobil e : +46 - 706 96 29 50 Mobil e : +46 - 704 85 21 14 E mail: mail: [email protected] E - - [email protected] Nilörngruppen AB Box 499 503 13 Borås SWEDEN www.nilorn.com 4

5 Summary Financial Reports Consolidated Income Statement 3 months 12 months January - March January - December 2017 2017 Amounts in SEK thousand 2018 2018 178 135 662 564 Net revenue 712 020 152 016 -396 033 -84 841 -364 600 Raw materials, supplies and g o o ds fo r resale -103 933 297 964 315 987 67 175 74 202 Gross profit 1 659 9 259 6 139 Other o perating revenue 2 505 -78 638 -82 178 -14 568 Other external c o sts -18 396 -34 142 -144 770 -133 311 -39 226 Perso nnel c o sts -5 817 -1 742 -8 362 -6 287 Deprec iatio n, amo rtisatio n and impairment c harg es -1 198 Other o perating c o sts -1 996 -4 699 -3 458 85 237 82 409 15 100 Operating profit 13 356 Net financ e items -767 -995 -1 391 -167 14 333 83 846 82 242 P rofit before taxes 12 361 -3 296 -3 037 -13 122 -17 219 Taxes 65 023 9 324 11 037 Net profit for the period 70 724 11 402 11 402 11 402 11 402 Averag e number o f shares o utstanding (tho usands) Averag e number o f shares o utstanding after dilutio n (tho usands) 11 402 11 402 11 402 11 402 5.70 Earnings per share, SEK 0.97 0.82 6.20 5.70 0.97 0.82 6.20 Earnings per share, SEK after dilution Consolidated Statement of Comprehensive Result January - March January - December Amounts in SEK thousand 2017 2017 2016 2018 Net profit for the period 11 037 65 023 9 324 70 724 Other c o mprehensive result that may be repo sted to net pro fit fo r the perio d Translatio n differenc es 4 599 3 332 1 723 -7 832 Items that cannot be reposted to net profit for the period Revaluatio n o f defined benefit pensio n sc heme -22 13 - - 57 169 72 460 12 656 15 636 Total profit for the period To tal pro fit fo r the perio d attributable to : 72 460 57 169 The Parent Company’s equity holders 15 636 12 656 Quarterly Income Statements 2019 2017 2016 2015 Amo unt in MS EK) 2018 Q1 Q2 Q3 Q4 Q1 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 143.0 115.3 Net revenue 178.1 152.0 202.6 171.7 185.7 154.1 188.5 144.9 175.0 116.1 167.4 141.1 168.3 106.0 148.1 Raw materials, supplies and -84.8 -94.0 -103.8 -85.7 -108.6 -76.4 -93.9 -61.4 -113.4 -77.3 -91.1 -58.2 -81.6 -62.2 -76.8 -103.9 -94.5 g o o ds fo r resale 72.9 67.2 77.7 81.9 68.4 79.9 68.5 81.1 54.7 89.2 63.8 77.2 47.8 66.5 53.1 66.2 Gro ss pro fit 74.2 41.7% 44.2% 44.0% 45.3% 44.1% 44.4% 42.4% 47.3% 46.3% 47.1% 43.5% 45.2% 45.9% 45.1% 44.9% 46.1% 46.3% Gro ss marg in 0.9 2.5 1.4 2.0 4.2 1.7 1.6 0.5 2.3 1.7 1.2 1.2 2.3 1.2 1.4 2.6 1.3 Other inc o me Operating c o sts -55.8 -54.3 -61.3 -58.5 -58.2 -51.4 -55.7 -52.0 -56.3 -44.8 -47.2 -46.6 -56.2 -43.4 -49.2 -45.9 -46.6 Deprec iatio n, amo rtisatio n -1.8 -1.2 -2.0 -2.1 -2.5 -1.2 -1.6 -1.7 -5.8 -1.3 -1.0 -1.0 -1.2 -0.9 -1.0 -1.0 -1.3 and impairment c harg es Operating profit 15.1 13.4 27.3 19.1 25.4 17.5 24.2 15.3 25.3 9.5 25.9 17.4 22.1 4.7 17.7 8.8 19.6 14.5% Operating margin 8.8% 13.5% 11.1% 13.7% 11.4% 12.8% 10.5% 8.5% 8.2% 15.5% 12.3% 13.1% 4.4% 12.0% 7.6% 13.7% 0.8 Operating profit per share 1.3 1.2 2.4 1.7 2.2 1.5 2.1 1.3 2.2 0.8 2.3 1.5 1.9 0.4 1.6 1.7 5

6 Quarterly development of : N Operating profit revenue et – 30 March 1 January – 31 December 1 January 2019 2018 2018 2017 2016 2015 2014 KEY FINANCIAL INDICATORS - 1.0 7.5 11.5 17.2 15.8 15.2 19.5 Revenue growth, % 8.5 8.8 Operating margin, % 12.0 12.1 12.3 9.6 11.3 Profit margin, % 8.0 8.1 11.8 12.1 12.1 9.5 11.2 125.6 160.2 167.3 145.9 113.8 104.6 Average equity 188.6 5.9 5.8 42.3 44.6 Return on equity, % 44.8 34.3 39.9 Equity ratio, % 46.5 48.7 53.0 50.8 48.8 53.3 49.2 32.1 Interest - bearing net cash (liabilities – ), MSEK - 46.1 2.7 - 2.5 9.2 9.7 5.0 Interest - – ), adjusted bearing net cash (liabilities 9.2 2.5 2.7 - 15.4 9.7 5.0 32.1 for IFRS 16, MSEK Earnings per share, SEK 0.97 0.82 6.20 5.70 4.93 3.42 3.66 13.50 Equity per 17.23 14.61 15.85 share, SEK 12.08 9.94 10.02 3.60 Dividend per share, SEK* - - 4.00 4.00 3.00 3.50 Average number of shares outstanding 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 outstanding at end of period 11 401 988 11 401 988 11 401 988 11 401 988 11 401 988 Number of shares 11 401 988 358 Average number of employees 496 4 70 482 446 335 301 *Suggested dividend from the board for year 2018 6

7 Consolidated Balance Sheet 2019-03 2018-12 2017-12 2018-03 Amounts in SEK thousand Assets Intang ible no n-c urrent assets 15 420 16 594 14 673 17 677 129 070 47 148 63 696 48 193 Other no n-c urrent assets 106 442 Invento ries 107 934 110 017 111 672 83 955 91 049 Trade rec eiveables 76 238 83 175 Other c urrent assets 29 501 21 838 31 885 18 658 44 837 Cash and c ash equivalents 55 726 54 818 37 935 Total assets 341 219 312 616 341 945 422 371 Equity and liabilities 196 403 166 569 180 767 153 913 Equity 47639 - - Lo ng -term interest-bearing liabilites - Lo ng -term no n-interest-bearing liabilities 2 196 1 312 2 009 1 242 Current interest-bearing liabilities 54 161 52 123 40 457 35 677 Current no n-interest-bearing liabilities 121 972 121 941 117 986 121 784 312 616 Total equity and liabilities 422 371 341 945 341 219 Changes in Consolidated Equity Other Retained earnings 2019 Total Share contributed including net profit Amounts in SEK thousand capital capital Reserves equity for the period Total 138 723 180 767 2 850 180 767 OP ENING EQUITY 2019-01-01 43 231 -4 037 Net pro fit fo r the perio d 11 037 11 037 11 037 Other total profit 4 599 4 599 4 599 Translatio n differenc es during the perio d Transactions with shareholders CLOSING EQUITY 2019-03-31 2 850 196 403 149 760 562 43 231 196 403 2018 Retained earnings Other Share contributed Amounts in SEK thousand including net profit Total Total equity capital capital Reserves for the period OP ENING EQUITY 2018-01-01 2 850 43 231 -5 760 113 592 153 913 153 913 9 324 Net pro fit fo r the perio d 9 324 9 324 Other total profit 3 332 3 332 3 332 Translatio n differenc es during the perio d Transactions with shareholders CLOSING EQUITY 2018-03-31 166 569 166 569 122 916 -2 428 43 231 2 850 7

8 ch anuar - M J y January – December ar Consolidated Cash Flow Statement 2019 Amounts in SEK thousand 2018 2017 2018 Operating activities , 100 13 , 356 Operating profit , 237 82 , 409 15 85 Adjustment for items not included in cash flow 5 , 817 1 , 742 Depreciation, amortisation and impairment charges , 362 6 , 287 8 - 80 481 Profit/loss from sales of fixed assets - 171 566 - - 3 , 070 2 , Other non cash generated items , 21 088 14 , 177 90 609 91 , 743 , 267 188 590 1 Interest income 051 , Interest expense − 1 , 034 − 1 , 183 − 1 , 981 − 1 , 218 − , 634 − 2 , 136 − 15 , 373 − 19 , 831 3 Paid taxes Cash flow from operating activities before changes in working , 687 11 , 046 16 , 845 71 , 745 capital 73 Cash flow from changes in working capital , 082 121 Inventories 4 , 911 − 28 , 513 4 577 , 754 − 11 , 919 − 3 , Trade receivables − 10 , 267 2 Other short 2 , 385 − 3 , 203 term receivables − 10 , 930 6 , 634 - 277 Trade payables − 10 , 872 − 12 , 964 5 , 462 18 , Other liabilities , 395 11 , 534 − 14 , 082 8 , 352 9 629 activities 24 Cash flow from operating 431 − 5 , 385 55 , 66 , 228 , Investment activities Acquisition of intangible non - current assets − 1 , 457 − 1 , 467 − 4 , 994 − 12 , 493 − Acquisition of intangible non − 6 , 232 − 29 current assets 15 , 505 − 10 , 844 - Sales of fixed assets - - 423 − Change in long term receivable − 192 − 40 - − 4 , 041 − 223 Cash flow from investment activities − 7 , 913 117 − 1 , 554 − 24 , − 22 , 660 Financing activities 177 16 , 446 5 , 546 10 , Repayment/raising loans 40 606 Paid dividend - − 45 , - − 41 , 047 Cash flow from financing activities 40 16 , 446 − 40 , 060 − 30 , 870 − Cash flow for the year , 558 9 , 507 16 8 , 548 12 , 698 Cash and cash equivalents at beginning of period 37 , 935 44 , 837 44 , 837 35 , 210 1 Translation difference in cash and cash equivalents 1 , 233 474 , 646 − 3 , 071 837 Cash and cash equivalents at end of period 55 , 726 54 , 818 37 , 935 44 , 8

9 3 months 12 months Parent Company Income Statement January - March January - December Amounts in SEK thousand 2018 2019 2017 2018 20 716 21 635 5 424 6 242 Net revenue 1 950 6 906 7 907 Other o perating inc o me 1 780 Total revenue 7 204 29 542 27 622 8 192 -3 025 Other external c o sts -10 960 -13 636 -2 367 -20 688 Perso nnel c o sts -5 243 -4 910 -19 186 -663 -440 Deprec iatio n, amo rtisatio n and impairment c harg es -208 -1 458 -7 365 Operating profit -516 -281 -2 062 51 094 -202 Net financ e items -371 52 462 43 729 50 400 -652 P rofit after finance items -718 7 840 Year-end appro priatio ns - - 7 500 -58 27 Taxes -14 -1 430 56 810 -732 51 256 Net profit for the period -710 Since there a re no comprehensive profit items, comprehensive income coincides with the period's results. Parent Company Balance Sheet 2018-03 2017-12 2018-12 2019-03 Amounts in SEK thousand Assets 8 857 14 044 Intang ible no n-c urrent assets 12 892 9 521 1 560 1940 Tang ible no n-c urrent assets 1 413 1879 124 031 124 101 Financ ial no n-c urrent assets 98 905 98 904 107 492 119 237 97 213 S ho rt-term rec eivables 101 259 - - Cash and c ash equivalents - - 245 975 206 914 229 542 240 817 Total assets Equity and liabilities 87 464 76 234 88 196 Equity 76 993 2 186 2 186 Untaxed reserves 4 196 4 186 - - Lo ng -term liabilities - - Current liabilities 153 583 127 735 151 122 149 167 245 975 229 542 240 817 Total equity and liabilities 206 914 s Note Accounting policies 1. 8 , the As was the case with the Annual Accounts for 201 ew accounting policies for N 2019 Consolidated Financial Statements have been prepared in Fr es IFRS 16 Leas applies 2019 Nilörngruppen . y anuar J 1 om accordance with International Financial Reporting Standards The Group has applied the simplified transition method and (IFRS) as adopted by EU, recommendation No 1 (RFR 1) of the has thus not recalculated comparative data. The simplification Swedish Financial Reporting Board. As was the case with the - rule, that the right - of lent to the lease use asset shall be equiv a Annual Accounts for 2017, the Parent Company prepares its liability, has been applied in the transition. No transition effect financial statements in accordance with the Annual Accounts is therefore reported in equity. A complete description of the Act and recommendation No 2 (RFR 2) of the Swedish i lic po accounting es for leases will be found in the 2018 Annual - Financial Reporting Board. The Year end Report is prepared in lso refer to Note 3 for the effect of IFRS 16 on the Report. A accordance with IAS 34 and the Swedish Annual Accounts quarter. Act. The Parent Company has chosen to apply the exemption rules in RFR 2, which means that all leases will also in the future be al. repo r ted as operation 9

10 Information by geogra phic area 2. Other Intra Nordic Period January - March 2019 Asia Total Group Europe region Revenue , 588 52 , 523 111 14 024 - 178 , 135 External revenue , 14 , 588 52 , 523 111 Total revenue 024 0 178 , 135 , Profit 654 036 2 , 936 10 , , − 526 15 , 100 Operating profit 2 267 267 Interest income Interest expense − 1 , 034 − 1 , 034 296 Taxes on the on the period’s profit − 3 , − 3 , 296 037 Net profit for the period 2 , 036 2 , 936 10 , 654 − 4 , 589 11 , Period January - March 2018 Revenue 16 , 288 46 , 887 88 , 841 - 152 , 016 External revenue , , 893 218 , 752 392 68 743 Total revenue 0 680 , 388 Profit Operating profit , 344 4 , 492 7 , 800 − 280 1 13 , 356 Interest income 188 188 Interest expense − 1 , 183 − 1 , 183 , Taxes on the profit for the year − 3 037 − 3 , 037 Net profit for the year 1 , 344 4 , 492 7 , 800 − 4 , 312 9 , 324 10

11 IFRS 16 Leas es 3. es IFRS 16 Leas Of which effect 31 March 2019 not incl. March 31 IFRS 16 R eport of financial position 2019 effect of IFRS 16 of current assets 129 , 070 62 , 694 66 , 376 Other non - 360 29 501 − 1 , , 30 , 861 Other current assets quity ( profit for the year ) 196 , 403 − 171 196 , E 574 L - term interest - bearing liabilities 47 , 639 47 , 639 - ong , - bearing liabilities 54 , 161 13 - 866 40 , 295 Short term interest effe t an - M ar ch Of which J c J an - March 2019 not eport of effects on profit 2019 R of IFRS 16 incl. effect of IFRS 16 427 Other external cost − 14 , 568 3 , 859 − 18 , 222 Depreciation, amortisation and impairment 5 , 817 − 3 , 595 − 2 , − Net finance items − 767 − − 287 480 Taxes − 3 , 296 45 − 3 , 341 171 Total 24 , 448 − − − 24 , 277 M March 2019 not - J an - ar ch Jan Of which effect of IFRS 16 2019 Key financial indicators incl. effect of IFRS 16 margin 8.5 − 0.2 8.3 Operating cash and cash equivalents ( Net − ), MSEK − 46.1 61.5 15.4 liabilities Equity ratio , % 46.5 − 8.1 54.6 Definition s of alternativ 4. key financial indicators e ESMA (The European Securities and Markets Authority) has published guidelines for alternative key financial indicators for companies with securities listed on a regulated market within EU. These guidelines shall be applied to alternative key financ ial indi cators used starting 3 October 2016. Reference is made in the annual accounts to a number of non - IFRS performance metrics used to help investors as well as management to analyse the company’s operations. These financial metrics should therefore no t be seen as replacements for metrics defined according to IFRS. Since all companies do not calculate financial metrics in the same way , they are not always comparable with metrics used by other companies. These financial metrics should therefore not be seen as rep lacements for metrics defined according to IFRS. We describe below the various non - IFRS performance metrics used as a complement to the financial information reported in accordance with IFRS and how these metrics have been used. 11

12 Definitions of key financial indicators metrics not defined by IFRS – - IFRS metrics Definition Justification Non Average equity Equity at the beginning of the period, plus The metric is the difference between the Group’s equity at the end of the period, divided by assets and liabilities, which is equivalent to two. consolidated equity contributed by owners and the consolidated aggregated profit. This metric is used to report the capital attributable to the Group’s own ers. This metric is used to measure the development of Average number of employees Average number of yearly employed the Group’s workforce. Net revenue at the end of the period, minus Revenue growth This metric is used to measure the development of net revenue at the beginning of the period, the Group’s revenue over time. divided by net revenue at the beginning of the period. Return on equity used to analyse profitability over time, Period’s result according to the income This metric is statement in percent of average equity. given the resources attributable to the Parent Company’s owners. profitability metric Return on capital employed Result before taxes, plus financial expenses, in Return on capital employed is a used to gauge the result relative to the capital percent of average capital employed. required to run the business. - bearing net cash and cash Interest - bearing receivables, cash and cash Interest The metric shows the total debt financing and is used as a complement to judge the feasibility of paying reduced by interest - bearing equivalents/liabilities equivalents, liabilities. dividends, to implement strategic investments and to gauge the Group’s ability to meet its financial obligations. Operating margin Operating result in percent of net revenue. This metric is used to measure operative profitability. Equity ratio This measure shows the proportion of the company’s Equity in percent of balance sheet total. total assets financed with equity by its shareholders. A high equity ratio is an indication of financial strength. Operating margin Operating result in percent of net revenue. measure operative profitability. This metric is used to Nilörngruppen in Brief Nilörngruppen is a global company founded in the 1970s, with expertise in adding value to trade marks through branding in the form of labels, packaging and accessories, primarily for customers in the fashion and apparel industry. Nilörngruppen offers complete, creative and customised concepts in branding, design, product development and logistic solutions. The Group conduct s business via its own subsidiaries in Sweden, Denmark, Great B ritain, Germany, Belgium, Portugal, Hong Kong, India, Turkey, China, Bangladesh, Italy and Pakistan. The Group has partner companies in Tunisia and Switzerland. 12

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