AB Traction : 22Q1

Interim Report

January - March 2022

Period January - March

• Profit after taxes amounted to MSEK -19 (501), distributed as follows: o Active listed holdings MSEK 26 (305)
  o Unlisted holdings MSEK 0 (50)
  o Financial investments MSEK -43 (148)
• Earnings per share amounted to SEK -1.30 (33.86)
• Net asset value per share amounted to SEK 285 (286)
• Net asset value per share was unchanged (+17) percent
• The return on active listed holdings was approximately 1 percent
• The return on other listed shares was approximately -6 percent

Events after the end of the period

• The change in value, including dividend income on listed holdings since 31 March amounts to MSEK -57 as of 4 May 2022, whereof active listed holdings amount to MSEK -62 and other listed shares MSEK 5.

Traction in brief

Traction is an investment company with active ownership interest in listed and unlisted small- and medium-sized companies. Traction is also engaged in investment activities for the purpose of obtaining a good yield on the Company's capital through financial investments, mainly in other listed companies and interest-bearing assets. Traction's role as owner is based on an active and long-term engagement in close cooperation with other active owners, entrepreneurs and corporate management groups. Traction does not focus on singular industries. Traction instead is engaged in development and transformation work applicable to all companies intending to prioritize business sense, a long-term approach and sound business principles. Traction's shares are traded on NASDAQ Stockholm (the Mid Cap list). More information is availableat www.traction.se.

P a g e | 2

Traction's net asset value

The table below shows Traction's net asset value as of 31 March 2022.

	Number	Price	Percentage	Percentage	Market	Percentage	SEK/
Holdings	of shares	per	of	of	value	of
share
	thousands	share	capital	votes	MSEK	total
Active listed holdings
BE Group	3,178	172.00	24%	24%	547	13%	37
Drillcon	24,000	6.18	54%	54%	148	4%	10
Driver Group Plc	10,753	3.70	21%	21%	40	1%	3
Hifab Group	32,944	2.70	54%	55%	89	2%	6
Nilörngruppen	3,000	99.60	26%	58%	299	7%	20
OEM International	2,228	163.20	3%	10%	364	9%	25
Softronic	11,589	25.75	22%	20%	298	7%	20
Total					1,784	42%	121
Unlisted holdings
Unlisted holdings					317	8%	21
Due from unlisted holdings					29	1%	2
Total					346	8%	23
Total active listed and unlisted holdings				2,130	51%	144
Financial investments, cash and cash equivalents
Other listed shares¹					786	19%	53
Interest-bearing investments2					1,014	24%	69
Cash and cash equivalents					286	7%	19
Total					2,085	49%	141
TOTAL					4,215	100%	285

¹Other listed shares where Traction's ownership exceeds four percent of the shares outstanding:

	Number of	Percentage	Market value
Holding	shares	of capital	MSEK
	thousands
Duroc	3,025	8%	75
Poolia	2,920	6%	55
Portmeirion Plc	610	4%	46
TOTAL			176

2Including interest-bearing investments with a maturity of less than one year in the amount of MSEK 516.5 and other net asset/liabilities in the amount of MSEK -0.9.

Interim Report January-March 2022

P a g e | 3

President's Statement

Traction's profit for the first quarter of 2022 amounts to MSEK -19, which means a marginal decrease in net asset value during the period in which the Stockholm Stock Exchange fell by 14 percent. The active listed holdings contributed positively with MSEK 26, while the other listed shares charged the result with MSEK 42, corresponding to a negative return of approximately 6 percent.

Most of Traction's active listed holdings continue to show strong development, and in particular BE Group, Nilörngruppen, OEM International and Softronic, all of which exceed previous earnings records.

Russia's military attack on Ukraine, with its far-reaching economic and geopolitical consequences coupled with China's persistent shutdown policy, to reduce the spread of Covid -19, poses significant uncertainty and economic challenges that are likely to persist for a long time to come. In addition, the effects of the Riksbank's monetary policy and the simultaneous lack of political initiatives to curb asset inflation that this policy has entailed are significant factors of uncertainty. It is reasonable to assume that long-term necessary interest rate hikes will result in relatively sharp price declines on properties with sad consequences for many highly indebted households whose consumption space is already affected by generally rising prices; especially for necessities such as electricity, fuel and food. Traction tries to parry all these challenges and take advantage of the business opportunities that may also arise in a generally weaker and more turbulent external climate.

PERIOD JANUARY - MARCH

Summary

Profit after tax amounted to MSEK -19 (501), which includes changes in value of MSEK -36

1. and dividend income of MSEK 11 (6). Financial income amounted to MSEK 9 (8).

Active listed holdings

Active listed holdings contributed MSEK 26 (305), equivalent to a return of approximately 1 percent. Changes in value amounted to MSEK 25 (305) and dividend income was MSEK 1 (1). The major contributors to the result were BE Group which contributed MSEK 126 and Nilörngruppen MSEK 52. Hifab Group also contributed positively to the result. During the period, shares amounting to MSEK 21 have been divested in OEM International, at SEK 205.5 per share.

	Changes in value1 (MSEK)		2022
		Q1
	BE Group	126
	Drillcon	-48
	Driver Group Plc	-24
	Hifab Group	7
	Nilörngruppen	52
	OEM International	-47
	Softronic	-39
	Profit active listed holdings		26

1Including dividends as amounted to MSEK 1.

Unlisted holdings

Unlisted holdings impacted profit by MSEK 0 (50), which includes revaluation of shares by MSEK 0 (50) and revaluation of loan receivables by MSEK 0 (0) and dividend income of MSEK 0 (0).

Financial investments

Other listed holdings contributed MSEK -43 (148), divided into shares MSEK -42 (114) and interest-bearing investments MSEK -1 (34).

The change in value of other listed shares was MSEK -52 (108) and dividend income

Interim Report January-March 2022

P a g e | 4

amounted to MSEK 10 (5), of which Wallenius Wilhelmsen contributed by MSEK 20 whereas Duroc had a negative impact of MSEK 22. The top five holdings as of March 31 in terms of market cap consist of Duroc (MSEK 75), Wallenius Wilhelmsen (MSEK 66), Volkswagen (MSEK 65), Poolia (MSEK 55) and Portmeirion (MSEK 46). Shares amounting to approximately MSEK 27 have been divested in Wallenius Wilhelmsen. In total, shares have been acquired for a net MSEK 68, of which MSEK 21 relates to the conversion of previous holdings of convertibles in Arise. Changes in value of interest-bearing investments amounted to MSEK -9 (26) and interest income was MSEK 9 (8), of which changes in value of convertible bonds amounts to MSEK 1 (12).

Traction's cash position amounted to MSEK

1. (467). Interest-bearing investments as of

1. March amounted to MSEK 1,015 (876), of which MSEK 517 (369) are investments in commercial papers and similar instruments with a tenor of less than one year and MSEK

1. (507) in corporate bonds and similar instruments. Holdings in other listed shares amounted to MSEK 786 (769).

Proposed dividends from active listed holdings including redemption of shares in OEM International amounts to MSEK 82 (82) in the second quarter. The dividend proposal to Traction's shareholders amounts to SEK 4.85 (2.00) per share equivalent to MSEK 72 (30).

Equity/Net asset value

Equity amounted to MSEK 4,215 as of

31 March (4,235) equivalent to SEK 285 (286) per share. The number of shares outstanding as of 31 March was 16,000,000, of which 1,800,000 of Class A. Not including repurchased shares (1,210,153 equivalent to

8 percent), the number of shares outstanding was 14,789,847, of which 1,800,000 were Class A shares.

Parent Company

AB Traction's result for the period amounted to MSEK 31 (321). The cash position amounted to MSEK 223 (410), not including investments in short-terminterest-bearing investments with a maturity of less than one year of MSEK 443 (301). The Parent Company has no external loans.

Transactions with closely related parties

There have been no transactions between Traction and closely related parties that have significantly affected the Group's and the Parent Company's financial position during the period. There were the usual transactions between wholly and majority owned companies in the Traction Group, including loans, interest charges, repayments, dividends/Group contributions and some charges for services provided.

Risks and uncertainty factors

Traction's significant risk and uncertainty factors include business risks in the form of exposure to certain industries, or an individual holding, as well as dependency on individual key persons in the companies in which Traction has an ownership interest. In addition, there are financial risks, which primarily consist of price risks, i.e. the risk of a change in value of a financial instrument due to changes in share prices, derivatives, bonds, foreign exchange rates or interest rates. In addition to the risks described in Traction's Annual Report in general by reason of the Company's business orientation, specific reference can be made to the Report of the Board of Directors and accompanying notes for a more detailed discussion of the Group's and the Parent Company's risk exposure and risk management procedures. Beyond that, no additional significant risks are deemed to have been added.

Interim Report January-March 2022

P a g e | 5

Accounting policies

This interim report for the Group has been prepared in accordance with IAS 34 - Interim Financial Reporting and applicable provisions of the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with the Swedish Annual Accounts Act. Traction is an investment company in accordance with IFRS 10, which means that Traction applies the statutory exceptions to consolidation of subsidiaries.

In all other respects the same accounting policies and calculation methods have been applied as in the most recent annual report. Comparative data refer to the corresponding year-ago period, except in the case of balance sheet items and liquidity metrics which refer to the prior year-end.

The information in this interim report was submitted for publication, through the agency of the CEO, at

3 pm., 5 May 2022.

Stockholm, 5 May 2022

Petter Stillström

CEO

This interim report has not been subject to review by the Company's auditors.

AB Traction Box 3314

SE-103 66 Stockholm

Corporate ID number: 556029-8654

Telephone: [phone]

E-mail:[e-mail]

Proposal by the Board of Directors and Annual General Meeting

A notice for the Annual General Meeting was published on April 4, 2022. Henrik Lange, Jonas Olavi, Bengt Stillström (CoB), and Petter Stillström are proposed for re-election to the board. Further information on traction.se.

The AGM will take place on Thursday, May 5, 2022, 5 pm.

Publication dates for future financial information:

15 July 2022Interim Report January-June 2022

25 Oct 2022Interim Report January-September 2022

10 Feb 2023Year-end Report 2022

This interim report is a translation of the Swedish version. In case of any discrepancy between the Swedish or English translation, the Swedish version shall prevail.

Interim Report January-March 2022