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Press release 21 October 2022, at: 08:08

Interim report July – September 2022 - Teqnion AB

Quick Report TEQ 2022 Q3 It's

been a long time since we've seen each other but now it's here knocking again, the recession. We see a noticeable
slowdown in the single-family house industry and a wait-and-see behavior in other industry niches. In electrification and
defence, on the contrary, there is high activity and great demand for what we offer. Our breadth makes us resilient, but
the margins have been squeezed somewhat. Growth and poor delivery times have driven our inventory build-up, which
impairs cash flow. It must be fixed. Turnover is up 31% compared to the comparison period, of which 9% is organic
growth, EBITA is approx. 6% better and earnings per share approx. 3% up. Our acquisition list is fine and our balance
sheet is healthy. We move forward.
/ Johan Steene, CEO and founder

Events during the first quarter (1 July – 30 September 2022)

- Belle Coachworks in England is acquired in August
- Reward Catering in Ireland is acquired in September
- Carina Strid is recruited as CFO and takes office no later than February 2023

Events after the end of the quarter

- Nothing significant

3m 6m 12 m

The group in summary, 2022 2021 2022 2021 2022 2021

Msec Q3 Q3 ÿ% Q1-Q3 Q1-Q3 ÿ% R12 Whole year

Net sales 286.9 218.6 31.3% 936.7 621.1 50.8% 1 235.9 920.2

EBITA 27.4 26.0 5.7% 100.0 63.8 56.7% 141.8 105.6

EBITA margin, % 9.6 11.9 Nah 10.7 10.3 Nah 11.5 11.5

Profit before tax 26.7 25.3 5.6% 97.8 61.7 58.5% 139.1 103.0

The result of the period 20.9 20.4 2.8% 77.6 50.6 53.5% 106.8 79.8

Earnings per share

before dilution, SEK 1.30 1.26 2.8% 4.81 3.13 53.5% 6.62 4.95

Earnings per share after

dilution, SEK 1.29 1.25 2.8% 4.77 3.11 53.5% 6.56 4.90

Cash flow from current

operations 6.9 15.4 -55.6% 29.7 48.8 -39.2% 100.5 119.6

Return on working capital, % 85.1% 60.1% na 85.1% 60.1% na 85.1% 73.4%

Return on equity, % 28.5% 22.2% na 28.5% 22.2% na 28.5% 26.5%

Equity ratio, % 40.3% 44.5% na 40.3% 44.5% na 40.3% 42.4%

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Johan's thoughts

Hey techies!
I still think that the financial crisis of 2008 was a clearer opponent than it is now for something we are heading into this time. Then it
said boom crash and then the demand in the industry disappeared. The banks trembled. It went fast. Clear and terrifying. It was
something to sink your teeth into and start working towards. Now, with continued good demand, we face a viciously spinning death
spiral, consisting of galloping inflation, rising interest rates, sky-high energy prices and pandemic-stopping supply chains, which are
flanked on all sides by a pitifully weak krone exchange rate, geopolitical uncertainty and war in Europe. How do you attack such a
sticky mess. It's like the difference between Game of Thrones where I was clearly shown which characters were good and which
were evil, versus the new House of the Dragon drivel where I'm given no clues as to who to root for. And to add to the confusion,
they change the ensemble after six episodes, do a time jump and pretend nothing happened. Unfair, just like the situation we have
in the economy. But we can take a quote from the new series and Lord Corly's Velaryon: "To elude a storm, you can either sail into
it or around it. But you must never await its coming.”

The superpower diversification

Of course we made mistakes sometimes, but never that we just stood still and waited for something to pass. In the impending
recession, some of our companies will have to go right in and breast what is thrown at us, while others can dodge the worst of the
waves. Some will be able to quietly slip on the edge of the storm with very little disruption to operations.

Several subsidiaries continue to grow with super fine margins, others grow but with poorer profitability and some slow down. The
strength of being a group of companies operating in many small industry niches is shown once again.
The whole becomes extremely durable, it is greater than the sum of its parts.

Price, price and cash flows

Being in the storm can be scary but there is also a raw clarity that calls to action.
Tasks that must be prioritized and completed so that you don't get off course or worse, get smashed against the rocks. Our margins
have been somewhat eroded by the fact that we do some trading in dollars and sell in other currencies, that electricity and fuel
prices are at record highs and that we have not fully succeeded in compensating for the price increases we ourselves have
experienced. Energy prices punish our manufacturing units the hardest when they use large machines and premises. However,
most of our companies are small consumers of energy as they mainly deal with trade and simple processing. Regardless, thrift and
thrift now apply. Since it has been difficult for a long time to secure our supply chains, several companies have chosen to increase
their stocks in order to secure their customer commitments. Our beloved cash flow suffers from such fashions. It needs to be fixed.
During the summer, we received larger deliveries that are planned to be delivered in the autumn, which should start to turn things
right.

Attention

Now we remind each other of what applies. As usual, we keep it simple and understandable. Secure margins, chase receivables
and trim stocks. The values we create should end up in the till, not on the shelf.
Price, price and cash flows

We must have been prepared to endure a long time at sea in crab lake. We must understand the seriousness. A tougher economic
climate means extra hard work and not just simple decisions. However, hard times are the best school in robust business. Now it's
time to keep the money. All profitability rules are truer than usual.
In good times with strong demand and cheap capital, it is all too easy to be lulled into a state where it feels permissible to slip on
principles. It is fatal. Now we will be sharpened scalpel sharp again!
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Cheerful
Cuckoo Although I may be expressing myself as a gloomy twig here, I want to emphasize how strong we are! And how good I feel
that we have acquired Reward Catering for the group. A lovely family company that is based in Dublin and manufactures the finest
of food trucks. There is an unprecedented entrepreneurial spirit and a rarely seen drive.
Something to really be inspired by. Here at home, I note that the fashion trend of acquisition-driven companies has been reversed.
There is not as much pressure with the company brokers anymore as several of the previous buyers have changed direction.
Now the focus seems to be more on trimming the operational business and current stock. I know that it is possible to make both
trips in parallel. Because we always have. So we continue as usual, acquiring and developing our fine existing businesses.

There is an incredible amount of excitement going on in the group, but the unrest in the world makes it easy to only see the
challenges. I am never satisfied with what we do. We can always do better. That feeling is reasonably both a gift and a punishment.
My luck is that I have a team that wants as much and fights as hard as I do. We always want to be our best. We are at the beginning
of building something really big. Please join us on our journey.

Support the brave women of Iran!

Still applies, more than ever, Russia
must get out of Ukraine!

Run father, be nice!

/ Johan Steene, CEO

The report is attached to this press release and is available via the following link: www.teqnion.se/
investor-relations/finansiella-rapporter/

For more information, please contact: Johan

Steene, CEO, Phone: +46 73 333 57 33, E-mail: johan@teqnion.se Daniel Zhang, CFO,
CXO, IR... 0721-555 695, daniel@teqnion.se

Teqnion AB
Evenemangsgatan 31 A, 169 79 Solna Tel:
08-655 12 00, E-mail: info@teqnion.se, Org.No: 556713-4183

This information is such information that Teqnion AB is obliged to make public according to the EU's market abuse regulation. The
information was provided, through the care of the above contact person, for publication on October 21, 2022 at 08:08 CET.

About Teqnion
Teqnion AB is an industrial group that acquires stable niche companies with good cash flows to develop and own with an eternal
horizon. The subsidiaries are managed decentralized with support from the parent company. We operate in the majority of
industries with leading products, which gives us good resilience in the event of economic fluctuations as well as solid industrial
know-how. For us, it is central to focus on profitability and long-term sustainable business relationships.

The company's shares with the short name TEQ are traded on the Nasdaq First North Growth Market.
Redeye AB is the company's Certified Adviser.