Slides
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Q4 report 12 June 2025 Kristofer T onström President & CEO Pernilla Walfridsson CFO 1
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Agenda • Business update • Financial development • Events after the reporting period • Strategy update and summary • Q&A 2
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3 Highlights Q4 and FY 2024/25 ✓ Q4 total sales 2,343 MSEK ✓ Organic +10% ✓ Online sales growth +19% ✓ Q4 operating profit at 109 MSEK, operating margin at 4.6% ✓ FY 2024/25 total sales 11,627 MSEK ✓ FY operating profit at 1,171 MSEK, operating margin 10.1% ✓ Operating cash flow FY 1,830 MSEK (1,489) ✓ Solid financial position: net debt/EBITDA -0.8* ✓ EPS: 13.91 SEK (8.03) ✓ Proposed dividend 7.00 SEK (4.25) ✓ Solid start to 2024/25 with +8% organic growth in May *Excl IFRS 16
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4 Business update
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Strategic position 5 • • • Createa conscious home environment.Light up your home. Tidy up your home. Connect & enjoy your home. Fix your home. • • • Competitive advantages Leveraging competitive advantages
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6 5% Clas Ohlson targets to achieve an organic sales growth of 5% per year Sales * i.e incl IFRS16 Financial targets and framework 7-9% The company is targeting a reported operating margin* of 7-9% per year Operating margin >50% Dividends are to comprise at least 50% of earnings per share after tax, with consideration for the company’ s financial position Dividend policy Net debt in relation to EBITDA is to be below two times. Investments are to be made in line with the company’ s financial position, cash flow and credit facility Net debt/EBITDA* <2x *excl IFRS 16
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Strategy execution – overview Q4 24/25 7 A profitable and growing online business. Make assortment relevant 12 months/year . Build a robust store network. Sustainability ✓ All prioritised niches driving growth ✓ All-weather product portfolio creates flexibility and relevance ✓ Continued high pace in launching product news ✓ Online sales growth 19% ✓ Online sales 21% of total sales in Q4 ✓ Strong LFL development ✓ Three new stores in Q4 ✓ Ambition for new stores 25/26 in line with two preceding years Efficient customer communication. - Improved brand/niche association across all markets A competitive cost base. - More efficient organisation enables growth initiatives Execution on our sustainability agenda. - Industry winner , Sustainable Brand Index 2025. Sales of spare parts up 26% in FY
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Customer relevance and satisfaction 8 Q: How affordable do you think the following brands are? Source: Clas Ohlson survey, January 2024Q: How affordable do you think the following brands are? Source: Clas Ohlson surveys, April 2025 6% 4% 54% 64% 40% 32% Low price competitors average Clas Ohlson Not affordable Neither affordable nor expensive Affordable 0 50000 100000 150000 200000 3 3,5 4 4,5 5 No of reviews Score 1-5 Product reviews Affordability Net promoter score 40 45 50 55 60 NPS
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9 All prioritised niches are growing Createa conscious home environment. Light up your home. Tidy up your home. Connect & enjoy your home. Fix your home. Spare parts Adjacent product segments
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10 Financial development
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11 Continued strong sales development Total sales, MSEK • T otal sales up 8% to 2,343 MSEK, of which 10% organic and -2% currency effects • Online sales up 19% to 493 MSEK Online sales, MSEK Online share of total sales (R12), % Q4 • T otal sales up 14% to 11,627 MSEK, of which 10% organic and -1% currency effects • Online sales 2,231 MSEK • The store network increased by 11 stores during FY 2024/25 FY 2024/25
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Positive development in all markets 12 Sweden Norway Finland Organic growth: Q4: +9% Q1-Q4: +12% Q4: +12% Q1-Q4: +11% Q4: +3% Q1-Q4: +4%
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13 Macro trends with business impact 9.14 9.79 8 8,5 9 9,5 10 10,5 11 11,5 2022 2023 2024 2025 USD/SEK* 92.7 80 85 90 95 100 105 110 2022 2023 2024 2025 NOK/SEK* 103.4 Factors impacting Clas Ohlson: • Container shipping costs and raw material and commodity prices • T ranslation/transaction effects - sales instant effects and purchasing with a time lag • Hedging policy/effects • Pricing effects * Monthly average, The Riksbank/Nasdaq Proactive measures: • Pricing – continuously optimising prices • Sourcing – diversified sourcing strategy • Flexible freight contracts • Optimise sales mix – private label, product and category mix • Products and packaging * Shanghai Containerised Freight Index Spot prices for 40t containers from Asia to Gothenburg $- $2 000 $4 000 $6 000 $8 000 $10 000 $12 000 $14 000 $16 000 $18 000
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39.4% 39.5% Sourcing and transportation Currency effects, incl. hedging Product/price mix Gross margin increased vs last year 14 Q4 2023/24 Q4 2024/25
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Financial overview 15 4.6% (3.0%) EBIT-margin, Q4 32.8% (34.0%) Share of selling expenses, Q4 48MSEK (42 MSEK) Administrative expenses, Q4 Q4 Q4 Q1-Q4 Q1-Q4 MSEK 24/25 23/24 24/25 23/24 Operating profit excl. one- off items One-off items Operating profit 109 0 109 65 0 65 1,171 0 1,171 921 -205 717 Profit after financial items 97 51 1,118 653 Profit for the period 80 41 882 509 EPS before dilution, SEK 1.26 0.64 13.91 8.03
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16 Efficient and well-balanced inventory • Inventory level: 2,415 MSEK (2,448) at the end of the period
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Q1-Q4 Q1-Q4 MSEK 24/25 23/24 Cash flow from operating activities, before change in working capital 1,716 1,351 Change in working capital 114 137 Cash flow from operating activities 1,830 1,489 Cash flow from investing activities -157 -554 Cash flow from financing activities -829 -909 Cash flow for the period 845 26 17 Solid cash flow and financial position -0.8x (-0.2x) Net debt/EBITDA excl. IFRS 16 1,008MSEK Of which utilised 0 MSEK Approved credit facilities 1, 114MSEK (395 MSEK) Free cash flow Q1-Q4
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FY 2024/25 • T otal investments 157 MSEK (554) • New stores and refurbishments 99 MSEK (80) • IT systems 31 MSEK (3) Outlook 2025/26 • Investments in new stores, store refurbishments logistics and IT • T otal investments in 2025/26 expected to amount to approx. 250 MSEK Investments 18 123 554 157 22/23 23/24 24/25
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19 Events after the reporting period
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20 • ✓ ✓ ✓ Changes to our reporting as from Q1 2025/26
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21 • Up to and including Q4 2024/25, costs related to handling and distributing products at DC, in stores and at HQ have been included in cost of goods sold As from Q1 2025/26, these costs will be allocated to: o personnel expenses o other external expenses o depreciation/amortisation of tangible and intangible assets Impact on gross margin
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22 May sales development • T otal sales up 4% to 883 MSEK, of which 8% organic and currency effects -3% ‒ Sweden +7% organic ‒ Norway +16% organic ‒ Finland +3% organic ‒ Other markets -47% organic • Store network increased by 9 stores compared to end of May last year MSEK Total
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23 Proposed dividend • Proposed dividend 7.00 SEK per share (4.25) to be distributed as two separate payments of 3.50 SEK • Strong EPS development enables increased dividend • Dividend in line with dividend policy At least 50 per cent of earnings per share after tax, with consideration for the financial position SEK 1.50 4.25 7.00* 22/23 23/24 24/25 *proposed dividend
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24 Strategy update and summary
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Strategic position 25 • • • Createa conscious home environment.Light up your home. Tidy up your home. Connect & enjoy your home. Fix your home. • • • Competitive advantages Leveraging competitive advantages
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26 We see great growth opportunities in core our business Createa conscious home environment. Light up your home. Tidy up your home. Connect & enjoy your home. Fix your home. Spare parts Adjacent product segments
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Clas Ohlson’ s current market opportunity: ~340 BSEK*, and growing 27 ~3.4% market share ~ 86% brand awareness ~ 340 bnSEK T AM ~22m population ~5.9m Club Clas members * source: Eidra Consulting (formerly Cupole)
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Focus on defined growth drivers also in 2025/26 28 A profitable and growing online business. A relevant assortment all year round via prioritised niches. Building and operating a robust store network. Efficient customer communication. A competitive cost base. A strong organisation and sustainability integrated into the business model.
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Clear path to continued growth and value creation 29 Needs-driven product assortment and high customer satisfaction. Well positioned in large and growing product niches. Central store locations, full-scale e-commerce and effective marketing. Strong financial position and focus on increasing earnings per share over time. ~340 BSEK market size ~86% brand awareness ~30% annual assortment renewal 57 NPS (scale -100 to 100) 4.3 average product reviews score (scale 1-5) 241 stores 19% share of online sales 16% annual online growth* since 2022/23 (CAGR) 268* 395** 1 114 22/23 23/24 24/25 8,8 20,9 30,7 22/23 23/24 24/25 2,85 8,03 13,91 22/23 23/24 24/25 Free cash flow Return on capital employed, % Earnings per share/ dividend per share, SEK *) free cash flow affected by one-off costs of SEK -154m **) free cash flow affected by one-off costs of SEK -205 million and acquisition of Spares of SEK -436 million*) excluding Spares
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30 Q&A
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