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Jetpak Top Holding AB (publ):Year-end Report 1 January – 31 December 2021

Fourth quarter: 1 October – 31 December 2021

· Total revenue increased by 9,6 % to 275 319 (251 276) TSEK
· Organic growth amounted to 8,5 % (3,9 %)
· Gross margin amounted to 31,3 % (30,9 %)
· Operating profit amounted to 31 698 (27 795) TSEK
· Adjusted EBITA amounted to 31 698 (28 503) TSEK
· Net income amounted to 22 828 (16 652) TSEK
· Basic earnings per share amounted to 1,90 (1,39) SEK
· Diluted earnings per share amounted to 1,89 (1,38) SEK
· Cash flow from operations amounted to 32 326 (33 082) TSEK
· Cash and cash equivalents amounted to 131 666 (87 230) TSEK
· Net debt in relation to adjusted EBITDA R12: 0,9 (1,6)

Full year: 1 January – 31 December 2021

· Total revenue increased by 13,2 % to 1032 615 (912 395) TSEK
· Organic growth amounted to 13,6 % (-7,0 %)
· Gross margin amounted to 30,5 % (30,6 %)
· Operating profit amounted to 102 751 (73 816) TSEK
· Adjusted EBITA amounted to 102 751 (76 649) TSEK
· Net income amounted to 70 212 (44 299) TSEK
· Basic earnings per share amounted to 5,85 (3,69) SEK
· Diluted earnings per share amounted to 5,80 (3,68) SEK
· Cash flow from operations amounted to 89 854 (84 412) TSEK
· The Board of Directors proposes that no dividend will be paid for the financial year 2021

CEO comments

Jetpak reached a fourth quarter total revenue of 275 319 TSEK, equal to a currency adjusted organic growth of 8,5 %. The operating profit and adjusted EBITA for the period amounted to 31 698 TSEK, corresponding to an operating margin of 11,5 %. This quarter’s profit was affected by provisions for the long-term incentive program amounting to 2171 TSEK, thus affecting the quarter’s operating profit by 0,8 percentage points.

The full year 2021 reached a record revenue level, as we for the first time reached a revenue above 1 billion, with a total of 1032615 TSEK. Also profit-wise 2021 turned out to be a record year as we reached an operating profit above 100 million, with 102751 TSEK.

The Express Air segment grew by 15,4 %, driven by logistic accounts and slightly improved service offering. Continued supply chain disruptions provided some volume and demand fluctuations within the Air segment during the quarter. Semiconductor supply shortage continued to impact some industries negatively, but increased demand from logistic customers offset the negative impact from global supply chain disruptions.

The gross margin for the Express Air segment amounted to 40,5 %, which was 2,9 percentage points lower than last year, driven by changes in customer and product mix.

Our market position within the Air segment remained stable during the quarter, even though we experienced a continued changed price competition for systemized services, which we successfully handled with our flexibility and high quality. We maintained a continued strong position for our Air ad-hoc services.

The Express Road segment grew during the quarter by 6,1 %, as the segment continued to benefit from increasing revenue from existing large distribution accounts focusing on the B2B segment, as well as B2C home deliveries. Growth within this segment was satisfactory considering that last year’s comparable figure was positively impacted by the acquisition of 3D Logistik.

The gross margin for the Express Road segment increased by 1,9 percentage points up to 19,9 %, thanks to improved product mix.

The price competition within the Road segment continued, especially on courier logistic services – driven by increasing e-commerce B2C volumes. Nevertheless, we managed to maintain our current market position thanks to our niche focus and high delivery quality.

Vaccine and test distribution continued to generate solid revenues and contribution during the quarter. Continued vaccine programs in the Nordics are currently not decided, something which potentially can lower this activity for the coming quarters.

During the quarter, we noticed increased fuel costs, which we anticipate will continue into 2022. Increasing demands for CO2 reduction is expected to lead a higher consumption of environmentally friendly HVO diesel, generating higher cost, which will be compensated by introduction of fuel and sustainability surcharge within our Road segment.

Despite an increased inflationary pressure during the quarter, we maintained a tight cost control. The cost ratio developed satisfactory, despite provisions to the incentive program and last year’s temporarily short-term covid-19 layoff effects. We constantly work with supplier negotiations with the objective to strengthen our competitiveness and enabling further growth for both segments.

During the fourth quarter Jetpak conducted an employee survey addressing motivation and leadership index. Despite covid-19, business and organizational disruption ratings were above expectations and industry average.
Customer satisfaction remained on a stable high level during the year, despite supply chain disruption and capacity challenges.

Sustainability work within the framework of the UN’s Global Compact Program is an integrated part of our daily work and during 2021 we have intensified our initiatives within CSR/ESG, including to move Jetpak towards a CO2 neutral future.

HVO fuel is now gradually being introduced among our franchisees and electric vehicle distribution is evaluated together with some of our largest customers. Increased costs and limited range remain an issue, which must be resolved, both drive-plan wise and commercially. Drones are also being evaluated as a part of our future distribution and linehaul capacity, but range and capacity is currently limited and necessary air authority approvals are pending.

Acquisitions have during recent years added to our growth and provided synergies. Especially our acquisition in Europe showed strong development during 2021.
Our most recent acquisition, CTS Express in Denmark, is expected to add further value during the coming year, as it is an important part of our strategy of strengthening our presence within the Danish air business.

We will be striving for further accelerated growth during coming years. We will revisit our M&A strategy and criteria – in addition to securing available funding for such a growth path. A successful outcome here will further strengthen our market position and provide synergies, which in turn will improve value creation and increase Jetpak’s market cap.

Our expectations for coming quarters are affected by fluctuations in the available air capacity. Current situation is expected to continue into the start of 2022, which potentially will have a negative impact on our air-based services. We however expect this to be counterbalanced by an increasing customer demand within both our Air and Road segments – which can support a continued growth during coming quarters.

We are continuously striving for increasing our organic growth and profitability through our prioritized strategic focus areas, which i.e. includes accelerated sales activities as well as enhanced price management and optimized margins. Further cost efficiency will be pursued within the Air and Road segment, as we will be revisiting our business model and organizational setup.

Based on current market conditions and defined initiatives we expect a continued strong organic growth, but continued air capacity volatility remains a risk and a normalization is still not foreseeable within the coming quarters.

Our performance for the quarter was in line with our expectations and we reconfirm our long-term financial targets, which will be balanced with our ambition of continuously increasing our operating profit in absolute terms.

Based on our ambition of an M&A accelerated growth, the company’s Board of Directors do not propose any dividend to the Annual General Meeting in June 2022.

Kenneth Marx,

Chief Executive Officer

Conference call
At 10:00 CET today, Kenneth Marx, CEO and Håkan Mattisson, CFO, will be presenting Jetpak’s result for the quarter. The presentation will be held in English.
Please use one of the phone numbers listed below to join the conference call:
Sweden: +46 (0) 8 5051 0086
Norway: +47 2 156 3319
Denmark: +45 3272 9274
Finland: +358 9 2319 5436
Germany: +49 (0) 30 3001 90613
Belgium: +32 (0) 3303 9933
Netherlands: +31 (0) 20708 5074
USA: +1 646 843 4609
UK: +44 (0) 33 0551 0205
PIN code (same code for all the above numbers): 95 39356 #

Please make sure you are connected to the conference call by calling in circa 5 minutes before the conference begins.

The company’s certified advisor is FNCA Sweden AB, e-mail: info@fnca.se, telephone:
+46(0) 8 5280 03 99.

The information was submitted for publication, through the contact person mentioned below, on 24 February 2022 at 06:30 CET.
This constitutes information that Jetpak Top Holding AB (publ) is required to publish under the EU Market Abuse Regulation.

Kenneth Marx, CEO
Phone: +46 (0) 73 368 54 00
e-mail: ir@jetpak.com
About Jetpak
Jetpak is the simplest and fastest option for prioritized door-to-door deliveries.
We offer solutions for both spontaneous transport needs and customized logistics.
Jetpak is represented in more than 170 locations around the Nordic region and Europe.
The Jetpak Top Holding AB share is listed on the Nasdaq First North Premier Growth Market.
The share is traded with the ISIN code SE0012012508 under the short name JETPAK.
Please visit: https://jetpakgroup.com