Duroc : 1Q 2023/24

November 05, 2023

INTERIM REPORT

JULY 2023-SEPTEMBER 2023

FRAGMENTED DEVELOPMENT BUT IMPROVED EARNINGS

First quarter July 2023 - September 2023

Net sales decreased by 16 percent to MSEK 726.8 (862.7). Organic growth** for the remaining operations was -13 percent. Falling raw material prices reduce sales, as they also reduce the price to the end customer to a significant extent.
Adjusted EBITDA* increased by 32 percent to total MSEK 20.8 (15.8), equivalent to an adjusted EBITDA* margin of 2.9 percent (1.8).
Adjusted EBIT* increased to MSEK -5.6(-12.4).
Operating profit (EBIT) totaled MSEK -5.2(-12.4).
Cash flow from operating activities totaled MSEK 23.8 (131.8).
Earnings after tax totaled MSEK -3.0(-11.1).
Adjusted earnings per share totaled SEK -0.09(-0.28).
Earnings per share totaled SEK -0.08(-0.28).
As of September 30, cash and cash equivalents totaled MSEK 28.4 (47.1), and net debt excluding lease liabilities from IFRS 16 totaled MSEK 100.2 (129.7), a reduction by MSEK 14.7 since the previous quarter. Unutilized credit facilities totaled MSEK 275.0 (271.7).
Equity totaled MSEK 1,066.3 (1,267.0) and the equity/assets ratio was 59 percent (56).
After the quarter end, on the 7th of November 2023, Duroc announced a strategical partnership with LKAB, consisting of a sale of 49 percent of the shares in Duroc Rail AB for a preliminary purchase price of 75 MSEK together with a joint initiative regarding a brand-new production facility in Luleå. This will enable increased production capacity to meet the growing demands from the industrial developments in the Northern part of Sweden.

	2023/2024	2022/2023	2023/2024	2022/2023
Group (MSEK)	Q1	Q1	R12 SEP	JUL-JUN
Net sales	726.8	862.7	3,357.2	3,493.1
EBITDA	21.3	15.8	109.5	104.0
Adjusted EBITDA*	20.8	15.8	119.1	114.0
Adjusted EBITDA*-margin, %	2.9	1.8	3.5	3.3
Operating profit/loss (EBIT)	-5.2	-12.4	-180.4	-187.6
Adjusted EBIT*	-5.6	-12.4	11.3	4.6
Profit/loss after tax	-3.0	-11.1	-229.9	-238.1
Profit per share, SEK	-0.08	-0.28	-5.90	-6.10
Adjusted profit per share, SEK*	-0.09	-0.28	-0.98	-1.17
Cashflow from operating activities	23.8	131.8	109.2	217.2
Net debt excl. lease liability from IFRS 16	100.2	159.4	100.2	115.0
Net debt incl. lease liability from IFRS 16	230.1	288.9	230.1	251.1
Net debt/Equity ratio, %	22	23	22	23

*Adjusted for items affecting comparability. A reconciliation of amounts can be found on page 20.

**Refers to growth adjusted for exchange rate fluctuations and structural changes such as the deconsolidation of Griffine.

Duroc acquires, develops and manages companies with a focus on trade and industry. Using their profound knowledge of technology and markets, the Group's companies aim to achieve leading positions in their respective industries. As the owner, Duroc actively contributes to their development. Duroc is listed on Nasdaq Stockholm (short name: DURC). www.duroc.se

D UR OC IN T E RIM RE P OR T Q 1 2 0 2 3 /2 02 4

2 ( 2 2 )

CEO'S COMMENT

The pattern from the previous year was repeated in the first quarter with good earnings in the technology trading units Duroc Machine Tool, Duroc Rail and Smaller Company Portfolio. The fragmented picture remains with weak results from the polymer companies, which are inherently cyclical.

During the quarter, the technical trading units generated MSEK 18 in operating profits, while the polymer companies burdened the Group with MSEK -21. IFG performed worse than the previous year, but in line with the industry as a whole. The fiber business in the USA recovered against the year-over-year quarter and there are now signs that the market has bottomed out.

Duroc has recently announced a new strategic partnership with LKAB and Duroc Rail, with the purpose of jointly developing the offering within maintenance of railway wheels and related components. LKAB will acquire 49 percent of Rail and will construct a new production facility. The transaction strengthens Duroc's already strong financial position, and the group is now in all material aspects, debt-free, which enables additional potential ventures.

First quarter July-September 2023

Sales and earnings in the Technology Trading companies: Duroc Machine Tool, Smaller Company Portfolio and Duroc Rail developed according to expectations, in a market characterized by continued good demand and few signs of impending recession. DMT entered the quarter with a strong order book and saw a significantly stronger year-over-year quarter. The market was favorable, and the mechanical engineering industry continued to invest in new capacity. Order intake in Q1 developed according to expectations and order levels remain good as we enter the next quarter.

Rail showed a strong development in the quarter and as previously announced, Duroc has entered into a strategic partnership with LKAB which aims to jointly develop the maintenance capacity and the offering for railway wheels in a future market tinged with demand of large structural industrial efforts in the northern part of Sweden, where the railway will play an important role in the green industrial transformation. The partnership entails a sale of 49 percent of the shares in Duroc Rail to LKAB and a joint initiative to build a new modern production facility in Luleå. The new facility, which will be owned by LKAB and is expected to be completed at the end of 2025, will enable increased flexibility and productivity, and will have increased capacity to produce larger volumes. I am very content with this joint future-oriented initiative within railway wheel maintenance, an area which Duroc has been in since the end of the 90's.

Smaller Company Portfolio noted a number of new machine orders for Herber, while DLC and UPN developed according to expectations.

Compared to the previous year, the quarter for IFG was worse, and the entire industry was characterized by low volumes and overcapacity, with severe price pressure as a result. IFG noted lower volumes in every segment except automotive, where demand was good. Drake Extrusion enjoyed a better quarter than the previous year, albeit well below expectations. Certain signs of better times ahead and a tendency toward increased yarn volumes could be discerned at the end of the quarter. By comparison, both Cresco and Plastibert underperformed, even though Cresco saw growth for the most important and profitable product group and is now entering the next quarter with strong order levels of around MSEK 100.

Outlook

We note a continued wait-and-see attitude for the polymer companies, and it's difficult to predict when the turnaround will

take place. In my view, there will be a slow but gradual improvement in this cyclical business, especially in the USA, where there are signs that the bottom has been reached and a turnaround is imminent. IFG and Plastibert will continue to face challenges in hard-hit industries. However, cost pressure for such things as energy is expected to decrease compared to the previous year, compensating for subdued volumes. In our assessment, the market for Cresco has bottomed out and the order situation will gradually improve moving forward.

The mechanical engineering industry is negatively affected by the high interest rates. This results in greater uncertainty than before regarding the capital-intensive investments that machinery from i. e. DMT entails, and decisions are expected to take longer than normal.

As a result of the transaction with LKAB, Duroc has strengthened its already strong financial position. The strategy going forward will result in an increased focus on developing the technical trade business units, which has almost doubled in size in combination with a substantial improvement in earnings, and at the same time reducing the dependence on the capital-heavypolymer-based units. Duroc is once again in a good position to influence developments regardless of the prevailing financial climate. In recent years, we have plotted a very cautious course, and this was beneficial for the Group during these very difficult economic times. Potentially, additional capital can be released from the polymer group through e.g., participations in structural transactions and by inviting partnerships in JV constellations. Thus, we're in a very good position today to invest in value- creating growth, both organically and through strategic acquisitions.

John Häger

CEO

D UR OC IN T E RIM RE P OR T Q 1 2 0 2 3 /2 02 4

3 ( 2 2 )

DEVELOPMENTS IN DUROC PORTFOLIO COMPANIES

Duroc's portfolio companies consist of International Fibres Group (IFG), Drake Extrusion, Cresco, Plastibert, Duroc Machine Tool (DMT), Duroc Rail and Smaller Company Portfolio (SCP), which comprises Universal Power Nordic (UPN), Herber and Duroc Laser Coating (DLC). Set forth below are each individual portfolio company's share of net sales and adjusted EBIT for the past 12-month period, October 2022 - September 2023. Read more about developments company by company on pages 4-10 and in Duroc's segment report on page 19.

SHARE OF NET SALES (R12) PROFORMA*

Duroc Rail	Smaller
5%	Comp Portf
	6%
DMT Group	IFG
36%
20%

Plastibert
5%
Cresco	Drake
9%	Extrusion
	19%

*Proportion of net sales and adjusted EBIT per portfolio company.

ADJUSTED EBIT PER PORTFOLIO COMPANY (R12) PROFORMA*

60

50

40

30

20

10

0
IFG	Drake	Cresco Plastibert DMT	Duroc Rail Smaller
- 10
	Extrusion	Group	Comp
				Portf
- 20

- 30

First quarter July 2023 - September 2023

Net sales decreased by 16 percent to MSEK 726.8 (862.7). Organic growth stood at -13 percent, mainly due to price mechanisms in agreements in the polymer-related companies, where lower purchase prices led to lower customer sales prices.
Adjusted EBITDA totaled MSEK 20.8 (15.8) and the adjusted EBITDA margin totaled 2.9 percent (1.8) driven by a higher gross margin. Adjusted EBITDA in the comparison quarter also included earnings from Griffine, where a negative EBITDA of MSEK -3.7 burdened the previous year's EBITDA.
DMT, Drake Extrusion and Duroc Rail reported a higher adjusted EBITDA than in the previous year. In the case of DMT and Duroc Rail, the increase was mainly attributable to higher sales, while Drake Extrusion saw an improved gross margin.
Adjusted EBIT totaled MSEK -5.6(-12.4) and operating income totaled MSEK -5.2(-12.4).
Earnings after tax totaled MSEK -3.0(-11.1).

DEVELOPMENT OF DUROC'S NET SALES PROFORMA* PER QUARTER / ROLLING 12 MONTHS

MSEK
1,000											4,000
900											3,500

800											3,000
700

600											2,500

500											2,000
400											1,500

300											1,000
200

100											500

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

*Duroc Group development excluding Griffine Enduction S.A.

DEVELOPMENT OF DUROC'S OPERATING PROFIT PROFORMA* PER QUARTER / ROLLING 12 MONTHS

MSEK
100												200
50												100
0												0
	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
- 50	2020/2021		2021/2022			2022/2023	2023/2024- 100
- 100												- 200
- 150												- 300
- 200												- 400

Q3 2020/2021 was affected by restructuring costs totaling MSEK 35.5. Q2 2022/2023 was affected by a group-related impairment of assets totaling MSEK 179.3 related to Griffine Enduction S.A.

D UR O C IN T E RIM RE P O R T Q 1 2 02 3 / 20 2 4

Duroc Machine Tool (DMT) is one of the biggest suppliers of machine tools, tools, machine service and support to mechanical engineering companies in the Nordics and Baltics. Its customers can be found in e.g., forestry, the automotive industry, construction machinery and power generation. Its most important products are processing machines from DN Solutions, one of the market's world leading brands. The DMT Group represents more than 60 internationally renowned brands and is alone in its activity in seven markets: Sweden, Norway, Denmark, Finland, Estonia, Latvia, and Lithuania.

4 ( 2 2 )

Share of Duroc's sales (R12)

20%

Net sales totaled MSEK 144.4 (119.9), an increase of 20 percent. Organic growth was 13 percent, mainly attributable to increased sales of DNS machines. Sales in the Danish, Norwegian and Finnish markets remained strong, but we noted that interest rates were discouraging the willingness to invest in Sweden and the Baltics.
EBITDA totaled MSEK 15.8 (8.2) and the EBITDA margin was 11 percent (7). Strategic initiatives necessary for managing strong growth drove costs up in the form of investments to increase the workforce.
Thanks to competitive products, a good service offering and a successful organization in general, DMT succeeded in taking market share during the year. Demand continued to be strong throughout the region.
Order intake remained good, and we are entering the next quarter with stable order levels.
Net cash decreased due to internal inventory build-up to meet future demand and a dividend pay out to Duroc amounting to MSEK 24.5.

Net sales per quarter / rolling 12 months

MSEK
200											800
180											700

160											600
140

120											500

100											400
80											300

60											200
40

20											100

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

	2023/	2022/	2023/
	2024	2023	2024
Amounts in MSEK	Q1	Q1	R12 SEP
Net Sales	144.4	119.9	624.1
Growth, Net Sales %	20.5	5.0	14.8
Organic growth %	12.8	2.0	8.8
EBITDA	15.8	8.2	59.0
EBITDA margin %	11.0	6.9	9.5
EBIT	13.9	6.7	52.1
EBIT margin %	9.6	5.6	8.3
Net Debt/Net Cash (-)	-2.7	-71.7	-2.7
of which from leasing IFRS 16	9.6	7.5	9.6
Capital employed	99.4	38.8	99.4
ROCE %	80.6	115.9	80.6

Adjusted operating profit per quarter / rolling 12 months

MSEK
20											60
18											50
16

14											40
12

10											30
8											20
6

4											10
2

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

D UR OC IN T E RIM RE P OR T Q 1 2 0 2 3 /2 02 4

Duroc Rail delivers complete, efficient, high- quality maintenance for railroad wheels for locomotives, railroad passenger cars and freight cars. Duroc Rail possess a unique competence in the area of wheel maintenance and is a key part of a larger system where Rail enables effective and predictable transports along critical infrastructure systems, such as Malmbanan. Rail's production facility is located in Luleå.

5 ( 2 2 )

Share of Duroc's sales (R12)

Duroc Rail continued to enjoy high order volumes and a sales growth of 30 percent, which meant a high degree of production capacity utilization.
The increased production volume has resulted in higher variable costs. Increased costs due to the project regarding the new production facility have also burdened the earnings.
Earnings (EBIT) totaled MSEK 4.6 (3.2) and the EBIT margin totaled 15 percent (14), driven primarily by sales.
During the quarter, Rail enjoyed a historically high production rate for the season and demand for railroad wheel maintenance continued to increase. A continued high production rate is expected in the coming quarters, which are seasonally the most intense for Rail.

Net sales per quarter / rolling 12 months

MSEK
60											180
50											160
										140

40											120
30											100
										80

20											60
10											40
										20

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

								2023/	2022/	2023/
								2024		2023	2024
Amounts in MSEK							Q1		Q1	R12 SEP
Net Sales								30.2	23.3	160.1
Growth, Net Sales %							29.5		-9.7	21.7
Organic growth %							29.5		-9.7	21.7
EBITDA								6.8		5.2	41.2
EBITDA margin %							22.5	22.4	25.7
EBIT								4.6		3.2	30.0
EBIT margin %								15.2	13.7	18.7
Adjusted EBIT								6.0		3.2	34.3
Adjusted EBIT margin %						19.9	13.7	21.4
Net Debt/Net Cash (-)							24.4	28.7	24.4
of which from leasing IFRS 16					6.4		9.3	6.4
Capital employed							40.4	43.6	40.4
ROCE %								68.4	60.9	68.4
Adjusted ROCE %							78.3	60.9	78.3
Adjusted operating profit per quarter / rolling 12 months
MSEK
18											36
16											32
14											28
12											24
10											20
8											16
6											12
4											8
2											4
0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

D UR O C IN T E RIM RE P O R T Q 1 2 02 3 / 20 2 4

Smaller Company Portfolio (SCP)

Universal Power Nordic (UPN) supplies diesel engines for industrial and marine applications in Sweden and Norway, along with associated spare parts, service, and repairs. The company represents well-known brands such as Perkins, Kubota, Kohler and Nanni.

Herber Engineering manufactures advanced bending machines for cold tube forming and profiles. It has customers worldwide in e.g., the automotive, aviation, furniture and HVAC industries.

Duroc Laser Coating (DLC) is Sweden's leading laser surface treatment company. DLC offers the renovation and new manufacture of industrial components.

6 ( 2 2 )

Share of Duroc's sales (R12)

Net sales for Smaller Company Portfolio totaled MSEK 33.2 (38.0) during the quarter, a decrease of 13 percent year-over- year.
EBIT totaled MSEK -0.8 (1.7), corresponding to an EBIT margin of -2 percent (4).
UPN's net sales decreased by 12 percent to MSEK 20.4 (23.2) during the first quarter. This was mainly due to lower sales of engines. Spare parts sales increased, which had a positive impact on gross margin. The operating loss totaled MSEK 1.2 (1.9). Personnel costs increased as part of the company's growth plan. However, other costs decreased, leading to an EBIT margin of 6 percent (8).
Herber's net sales decreased by 14 percent to MSEK 8.6 (10.1) due to slightly lower machine sales. Herber saw an increase in order intake during the quarter, which will improve sales in the quarters ahead. The company has begun a number of cost-saving initiatives that are expected to take effect in the coming quarters. EBIT totaled MSEK -1.2(-0.4).

Duroc Laser Coating reduced its sales by 13 percent to MSEK 4.2 (4.8). This is mainly due to a temporary disruption in the delivery of certain materials, which delayed deliveries to customers. Order levels continued to grow during the quarter. A temporary cost increase related to the above challenges together with training initiatives, burdened operating earnings during the quarter, which came in at MSEK -0.8 (0.2).

	2023/	2022/	2023/
	2024	2023	2024
Amounts in MSEK	Q1	Q1	R12 SEP
Net Sales	33.2	38.0	188.9
Growth, Net Sales %	-12.7	25.5	8.6
Organic growth %	-12.7	25.5	8.6
EBITDA	1.8	3.9	21.1
EBITDA margin %	5.5	10.3	11.2
EBIT	-0.8	1.7	10.5
EBIT margin %	-2.4	4.4	5.6
Net Debt/Net Cash (-)	42.6	34.2	42.6
of which from leasing IFRS 16	22.9	25.8	22.9
Capital employed	68.5	56.8	68.5
ROCE %	17.5	24.2	17.5

Net sales per quarter / rolling 12 months					Adjusted operating profit per quarter / rolling 12 months
MSEK												MSEK

70											200	6												18


60												5												15
50											150	4												12

40												3												9

30											100	2												6
											1												3

20											50	0												0
											Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
10												- 1	-3

0											0	- 2	2020/2021		2021/2022			2022/2023	2023/2024-6
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	- 3												-9

2020/2021		2021/2022			2022/2023	2023/2024

D UR OC IN T E RIM RE P OR T Q 1 2 0 2 3 /2 02 4

International Fibres Group (IFG) is one of Europe's leading manufacturers of polypropylene-based staple fibers, an input product with reinforcing, insulating, separating, or draining properties. The fiber is used in the production of e.g., flooring, rugs, furniture, filters, foodstuff packaging, car interiors and nonwoven fabrics, which means a diversified customer portfolio. IFG has production facilities in Belgium, the United Kingdom and Austria.

7 ( 2 2 )

Share of Duroc's sales (R12)

36%

Net sales decreased by -17 percent year-over-year. Organic growth stood at -25 percent, compared to the first quarter in the previous year, mainly due to lower prices for input goods*. On the other hand, volumes increased by 4 percent compared to the year-over-year quarter. The automotive, furniture, floors, floor coverings and geotextiles segment saw an increased order intake, while filters and paper decreased.
EBIT totaled MSEK -13.2(-6.4), which was mainly due to increased personnel costs as a result of large wage increases and a lower year-over-year gross margin. However, other external costs decreased as both energy and transport costs were significantly lower than the comparison quarter.
The company has initiated a cost-saving program to reduce both fixed and variable costs. While compulsory pay rises in Belgium and Austria were partially offset by layoffs and reduced labor forces, they still had a negative effect on operating income.
Net debt remained low and totaled MSEK 75.6 (68.8) excluding IFRS 16 effects.

	2023/	2022/	2023/
	2024	2023	2024
Amounts in MSEK	Q1	Q1	R12 SEP
Net Sales	262.3	315.0	1,148.7
Growth, Net Sales %	-16.7	-7.0	-15.6
Organic growth %	-24.8	-10.7	-21.8
EBITDA	-4.9	0.5	7.3
EBITDA margin %	-1.9	0.2	0.6
EBIT	-13.2	-6.4	-22.0
EBIT margin %	-5.0	-2.0	-1.9
Net Debt/Net Cash (-)	99.4	65.9	99.4
of which from leasing IFRS 16	75.6	68.8	75.6
Capital employed	442.4	467.6	442.4
ROCE %	-4.8	11.6	-4.8

*Price mechanisms in customer agreements for polypropylene mean that sales increase as raw materials prices rise and decrease as prices fall. Because raw materials prices affect both the sales price and raw materials costs, gross profit remains unchanged, but with a certain lag.

Net sales per quarter / rolling 12 months				Adjusted operating profit per quarter / rolling 12 months
MSEK					MSEK
450				1,800	40												80
400				1,600
			30													60
350				1,400

300				1,200	20												40
250				1,000	10												20

200				800	0												0
150				600
				Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
100				400	-10	-20
				2020/2021			2021/2022			2022/2023		2023/2024
50				200	-20							-40


0				0	-30												-60
Q2 Q3 Q4	Q1 Q2 Q3 Q4 Q1	Q2 Q3	Q4 Q1
2020/2021	2021/2022	2022/2023	2023/2024		-40												-80

D UR O C IN T E RIM RE P O R T Q 1 2 02 3 / 20 2 4

Drake Extrusion is North America's leading producer of polypropylene-based colored filament yarn and staple fiber. Filament yarn is used mostly by customers who produce fabrics for the furniture industry. Staple fiber is used for production in a variety of areas including flooring, rugs, furniture, technical filters, car interiors and nonwoven fabrics. The business is located in Virginia, USA.

8 ( 2 2 )

Share of Duroc's sales (R12)

19%

Net sales decreased by 13 percent in relation to the year- over-year quarter and organic growth was -15 percent. This was mainly due to a drop in volumes by 5 percent and where price mechanisms in contracts lead to a reduction in sales prices.
Demand for staple fibers declined and sales volumes decreased by 29 percent compared to the same quarter during the previous year. By contrast, demand for filament yarn increased, rising by 171 percent. Changes in customer order patterns, with more cautious order placement and restraint at the end of the quarters, had a negative impact on sales. However, the company saw that customer inventories have reached rock-bottom levels, and a rapid improvement in order entries could be noted.
The operating loss improved to MSEK -3.3(-7.5), mainly due to a higher year-over-year gross margin. Because the company's production was at a higher level year-over-year, costs for energy and personnel increased.
Drake saw a volatile but rising demand where the worst market downturn is considered to be over. The ongoing strike in the American automotive industry may have an impact on order intake over the long term, but no negative effects were noted during the quarter.

Net sales per quarter / rolling 12 months

MSEK
250											700

200											600
150											500
										400

100											300
50											200
										100

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

	2023/	2022/	2023/
	2024	2023	2024
Amounts in MSEK	Q1	Q1	R12 SEP
Net Sales	145.4	167.2	602.0
Growth, Net Sales %	-13.1	-12.4	-16.7
Organic growth %	-15.2	-28.2	-24.7
EBITDA	5.1	1.9	7.2
EBITDA margin %	3.5	1.1	1.2
Adjusted EBITDA	3.2	1.9	14.2
Adjusted EBITDA-margin, %	2.2	1.1	2.4
EBIT	-3.3	-7.5	-28.2
EBIT margin %	-2.3	-4.5	-4.7
Net Debt/Net Cash (-)	14.6	25.4	14.6
of which from leasing IFRS 16	6.6	10.9	6.6
Capital employed	292.7	341.7	292.7
ROCE %	-9.2	-3.9	-9.2
Adjusted ROCE %	-6.9	-3.9	-6.9

Adjusted operating profit per quarter / rolling 12 months

MSEK
10													40
													30
5													20
													10
0													0
	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	-10

- 5	2020/2021		2021/2022			2022/2023	2023/2024-20
													-30
- 10													-40
													-50
- 15													-60

D UR OC IN T E RIM RE P OR T Q 1 2 0 2 3 /2 02 4

Cresco develops, produces, and sells textile- based solutions for the professional cultivation of crops and is one of the leading players on the global market. The products contribute to favorable environments in greenhouses, mushroom farms, and composting installations. The most important product is a climate screen for greenhouses that controls the cultivation climate, contributing to a more efficient process with lower energy consumption. Cresco's production facility is in Belgium.

9 ( 2 2 )

Share of Duroc's sales (R12)

Net sales increased by 6 percent. Organic growth was -4 percent. While the sales volume was 5 percent higher, the product mix affected sales. The industrial segment increased by 47 percent, while the agricultural segment decreased by 8 percent.
EBIT was mainly affected by increased wage costs arising from inflation-based wage increases, as well as higher energy costs as year-over-year production was higher. Implemented cost adjustments partially compensated for the increased costs.
The market showed continuous signs of recovery and the order situation is higher year-over-year, with a certain volatility due to the recent developments abroad. Customers are deferring investment decisions due to the uncertain global situation, but replacements for deferred investments will eventually have to be made. The demand for energy- saving climate screens for greenhouses and recyclable ground cover fabric made from PLA (a biodegradable corn- based polymer) rose in the wake of a desire in many countries to increase their self-sufficiency in food products.

Net sales per quarter / rolling 12 months

MSEK
100											400
90											350

80											300
70

60											250

50											200
40											150

30											100
20

10											50

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

Moving forward, Cresco's efforts will focus on R&D, sales in new markets and continued cost adjustments.

	2023/	2022/	2023/
	2024	2023	2024
Amounts in MSEK	Q1	Q1	R12 SEP
Net Sales	78.2	73.5	283.5
Growth, Net Sales %	6.3	6.6	0.9
Organic growth %	-4.0	2.3	-7.3
EBITDA	-1.9	1.6	-1.9
EBITDA margin %	-2.4	2.2	-0.7
EBIT	-3.5	0.2	-7.9
EBIT margin %	-4.4	0.3	-2.8
Net Debt/Net Cash (-)	21.6	34.8	21.6
of which from leasing IFRS 16	6.9	4.8	6.9
Capital employed	206.6	219.7	206.6
ROCE %	-3.6	11.4	-3.6

Adjusted operating profit per quarter / rolling 12 months

MSEK
25												50
20												40
15												30
10												20
5												10
0												0
	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
- 5	2020/2021		2021/2022			2022/2023	2023/2024-10
- 10												-20

D UR O C IN T E RIM RE P O R T Q 1 2 02 3 / 20 2 4

Plastibert has been established in the international coated textiles market for more than 60 years. Its products comprise PVC and PU coated fabrics that are used in a variety of areas, including rainwear and protective clothing, PPE, furniture for public spaces, wall coverings and vehicle interiors. Plastibert's production facility is in Belgium.

*Plastibert was previously a part of Cotting Group together with French Griffine Enduction SA, but now that Griffine is no longer consolidated with Group companies, it reports as its own business area.

1 0 ( 22 )

Share of Duroc's sales (R12)

Net sales decreased by 1 percent during the quarter and organic growth stood at -9 percent, mainly due to lower volumes than in the comparison quarter. The industry as a whole was affected by lower order intake, with demand in the European market significantly lower, while demand in the US market increased, mainly in automotive.
The operating loss totaled MSEK -0.8 (0.0), and gross profit was MSEK 1.9 lower than the previous year. This was compensated by lower energy and shipping costs and various cost-saving initiatives, while increased personnel costs could be compensated by lay-offs.
The company noted a continued increase in order intake in both the furniture upholstery and automotive segments. Mattress protectors were stable, but the other segments saw a decline.
The company continued its efforts to improve capacity utilization in the factory, which is expected to have a positive effect on operating profit moving forward.

Net sales per quarter / rolling 12 months

MSEK
60											180
50											160
										140

40											120
30											100
										80

20											60
10											40
										20

0											0
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2020/2021		2021/2022			2022/2023	2023/2024

	2023/	2022/	2023/
	2024	2023	2024
Amounts in MSEK	Q1	Q1	R12 SEP
Net Sales	36.9	36.6	177.2
Growth, Net Sales %	0.8	-2.7	5.6
Organic growth %	-9.0	-6.6	-2.5
EBITDA	0.2	1.1	-8.4
EBITDA margin %	0.6	3.0	-4.7
EBIT	-0.8	0.0	-12.7
EBIT margin %	-2.3	0.1	-7.1
Net Debt/Net Cash (-)	3.7	4.9	3.7
of which from leasing IFRS 16	0.2	0.4	0.2
Capital employed	65.1	76.3	65.1
ROCE %	-17.7	-4.1	-17.7

Adjusted operating profit per quarter / rolling 12 months

MSEK
4			12
2			8
		4

0			0
Q2 Q3 Q4	Q1 Q2 Q3 Q4	Q1 Q2 Q3	Q4 Q1 -4
- 2			2023/2024-8
2020/2021	2021/2022	2022/2023
- 4			-12
- 6			-16
		-20

- 8			-24
- 10			-28
		-32

- 12			-36

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Duroc AB published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 13:17:58 UTC.

Market Closed - Nasdaq Stockholm Other stock markets 03:51:07 2024-04-30 am EDT			5-day change	1st Jan Change
18 ^SEK	+0.56%		-.--%	-0.83%

Feb. 20	Luossavaara-Kiirunavaara AB completed the acquisition of 49% stake in Duroc Rail AB from Duroc AB (OM:DURC B) for approximately SEK 79 million.	CI
Feb. 02	Duroc AB Reports Earnings Results for the Second Quarter and Six Months Ended December 31, 2023	CI

Luossavaara-Kiirunavaara AB completed the acquisition of 49% stake in Duroc Rail AB from Duroc AB (OM:DURC B) for approximately SEK 79 million.	Feb. 19	CI
Duroc AB Reports Earnings Results for the Second Quarter and Six Months Ended December 31, 2023	Feb. 02	CI
Duroc Enters into Strategic Partnership with LKAB	Nov. 07	CI
Duroc AB Reports Earnings Results for the First Quarter Ended September 30, 2023	Nov. 06	CI
Luossavaara-Kiirunavaara AB agreed to acquire a 49% stake in Duroc Rail AB from Duroc AB (OM:DURC B) for approximately SEK 75 million .	Nov. 06	CI
Duroc AB Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2023	23-08-18	CI
Duroc AB Reports Earnings Results for the Third Quarter and Nine Months Ended March 31, 2023	23-05-04	CI
Duroc AB Reports Earnings Results for the Second Quarter and Six Months Ended December 31, 2022	23-02-03	CI
Duroc AB Reports Earnings Results for the First Quarter Ended September 30, 2022	22-11-08	CI
Duroc AB Reports Earnings Results for the Fourth Quarter Ended June 30, 2022	22-08-19	CI
Johan Öberg Leaves the Board of Duroc AB	22-06-07	CI
Duroc AB Reports Earnings Results for the Third Quarter and Nine Months Ended March 31, 2022	22-05-06	CI
Duroc AB Provides Earnings Guidance for the Third Quarter of 2021-2022	22-04-11	CI
Duroc Appoints New CFO to Start in July	22-03-11	MT
Duroc AB Announces CFO Changes	22-03-11	CI
Duroc AB Reports Earnings Results for the Second Quarter and Six Months Ended December 31, 2021	22-02-04	CI
Duroc AB Reports Earnings Results for the First Quarter Ended September 30, 2021	21-11-09	CI
Duroc AB Publ Reports Earnings Results for the Fourth Quarter Ended June 30, 2021	21-08-20	CI
Duroc AB Provides Earnings Guidance for the Fourth Quarter of 2021	21-07-13	CI
Duroc AB Decides to Invest Approximately SEK 16 Million in a New Energy Supply Facility	21-07-06	CI
Duroc AB Provides Earnings Guidance for the Financial Year 2021-2022	21-06-21	CI
Duroc AB Publ Reports Earnings Results for the Third Quarter Ended March 31, 2021	21-05-07	CI
An unknown buyer acquired 13% stake in Carclo plc from Duroc AB (OM:DURC B) for SEK 25 million.	21-02-25	CI
International Fibres Group Reduces Production Capacity in England	21-02-17	CI
Duroc AB Publ Reports Earnings Results for the Second Quarter Ended December 31, 2020	21-02-05	CI

	1st Jan change	Capi.
DUROC AB	-0.83%	63.88M
INVESTOR AB	+16.98%	76.16B
KOÇ HOLDING	+59.45%	17.61B
INVESTMENT AB LATOUR	+2.74%	15.94B
AB INDUSTRIVÄRDEN	+8.60%	14.05B
L E LUNDBERGFÖRETAGEN AB	-0.04%	12.4B
HAL TRUST	+8.96%	12.06B
BAJAJ HOLDINGS & INVESTMENT LIMITED	+5.82%	10.89B
MERITZ FINANCIAL GROUP INC.	+34.35%	10.34B
GROUPE BRUXELLES LAMBERT SA	-1.92%	9.75B

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