Slides
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Interim Report Q2 2025 August 22nd 2025
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T oday's Presenters Göran Dahlin CEO
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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4 Online leader in a fragmented market • Pierce is a leading e -tailer in the European market for Gear, Parts and Accessories for motorcycle riding • The total European market, which was estimated to some 100 bnSEK in 2021 1 • The market is still fragmented, mainly served by traditional offline retailers while well suited for ecommerce and will likely consolidate at some point • Pierce is the clear leader in the Offroad customer category and one of the larger players in the Onroad customer category • Pierce is the only true pan -European company in the market with localized sites in 16 markets • Pierce has a uniquely attractive assortment, offering a wide range of top brands as well as the largest range of own brands in the market • Pierce has a turnover of approx. 1.5 bnSEK , HQ in Stockholm and 300 2 employees across Europe Strong private brands 1) ‘Pierce Group AB prospectus, Rights Issue 2022, page 52 . Market estimated to have declined in size since 2021, but no official market data is available. 2) Total headcount of which ap proximately 180 white -collar employees and 120 blue -collar employees. Blue -collar workers are employed in the warehouse 3) Net revenue, freight income and other fees. Pan -European company Motorcycle specialist One -stop -shop offering Net revenue split, Q2 2025 LTM THIS IS PIERCE Brand revenue split3, Q2 2025 LTM 32% Nordics 68% Outside Nordics 62% Offroad 34%Onroad 4% Other Net revenue split, Q2 2025 LTM 56% Gear 20% Parts 19% Accessories 5% Other Net revenue split, Q2 2025 LTM 61% External brands 39% Private brands
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5 A FRAGMENTED MARKET THAT IS STILL MAINLY OFFLINE The different market categories 100bn SEK market where the majority is still offline 1 Source: (1) Data from Pierce Group AB prospectus, Rights Issue 2022, pages 42 and 52 . Market estimated to have declined in size since 2021, but no official market data is available. PARTS GEAR ACCESSORIES STREETWEAR MOTORCYCLES (NOT INCLUDED IN MARKET SIZE) • Anything installed on or in the motorcycle • High wear and tear - demand dependent on intensity of riding • Ideal for online when combined with navigation tool, such as Fit - My -Bike • Motorcycle themed clothing from motocross and motorcycle brands • Popular among enthusiasts and share online characteristics with regular apparel • Protective clothing, such as helmets, boots, suits. • High wear and tear for frequent riders (especially offroad). • E.g. helmets is regulated and therefore owned by all riders • Products used with the motorcycle that are not mounted, e.g. mats, stands, tents • Standardized tools and equipment making accessories suitable for online • Pierce does not currently sell motorcycles as the value chain is very different, with lower margins and require retailers to offer service stations ~30% ~30% ~20% ~20% Online market 2021 SEK ~20bn1) Online market potential Online expected to grow faster than offline – key drivers T otal market 2021 SEK ~100bn1) ONLINE MARKET 2021 ~19% online penetration1) SELECTION, AVAILABILITY AND CONVENIENCE NICHE WELL-SUITED FOR BUYING ONLINE INCREASING BASE OF MOTORCYCLE RIDERS
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6 FRAGMENTED LANDSCAPE Competitive landscape Notes: (1) Assessed primary go -to -market Leading online retailers in Europe Brick-and-mortar Leading European omni channel retailers General / diversified online and marketplaces Direct-to-consumer Direct Competitors Player Home Go-to- market1 Ownership Comment Pierce Nordics Online Listed Nordic Champion. Pan European leader in offroad FC-Moto DE Online Private DE champion online, onroad Motoblouz FR Online Financial, Part of Polo Group FR champion online, onroad Sportsbikeshop UK Online Financial, Part of Polo Group UK champion onroad Motocard ES Omni Financial ES champion, onroad Motea DE Online Private PB Parts & Accessories onroad Polo DE Omni Financial, Part of Polo Group Offline leader with online presence. Louis DE Omni Financial Offline leader with online presence Maciag DE Online Private MX (and MTB) online challenger offroad.
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7 Q2 SUMMARY SEKm Q2 2025 Q2 2024 Net Revenue 523 456 Growth, Year over Year % 15% 3% Gross Profit 229 201 Gross Margin % 43.7% 44.1% Variable Costs -109 -98 Variable costs % 20.9% 21.4% Profit after variable costs 120 104 Profit after variable costs % 22.8% 22.7% Overhead costs -74 -69 Overhead costs % 14.1% 15.2% Adjusted EBITDA 46 35 Adjusted EBITDA % 8.7% 7.6% Depreciation & Amortization -13 -18 Depreciation & Amortization % 2.6% 3.9% Adjusted EBIT 32 17 Adjusted EBIT % 6.2% 3.7% Inventory 522 307 Cash 188 350 Cash Flow 13 83 Continued strong growth in-spite of limited tailwind from the market • Q2 showed 15% growth YoY, 20% in local currency. Growth was broad-based across all customer segments, primarily driven by improved stock availability of external brands compared to last year. • Performance improved materially in March and continued to do so throughout Q2. Slight decrease in gross margin but decreasing variable costs • Priority in Q2 has been to protect gross profit in absolute terms and to continue to grow the customer base. • Gross margin decreased slightly vs. last year with 0.4 ppt to 43.7% due to obsolescence effects versus last year and a stronger growth in external brands with lower margin than own brands. • Variable costs decreased as a result of our focus to improve efficiency in our performance marketing expenditure. High overheads due to transformation partially decreased by FX • Our Overhead costs increased with 5 SEKm vs. last year to 74 SEKm, including 8 SEKm in transformation cost. • Transformation costs due to implementing new SaaS systems cannot be capitalized, we are still carrying depreciation from our legacy on-prem systems – creating a temporary cost overlap. Once this transition is completed, both transformation costs and depreciation will gradually decline, enabling improved operating leverage with 30-40 SEKm annualized. Positive Adjusted EBIT for the quarter • Adjusted EBIT strengthen from 17 SEKm last year to 32 SEKm. • Our EBIT was affected by transformation cost of 8 SEKm, items affecting comparability of 7 SEKm and brand depreciation of 2 SEKm. Solid cash position • Cash end of Q2 was 188 SEKm, is a decline from an exceptionally high cash level during 2024, but still a very solid level • Inventory levels are higher than last quarter as projected and will likely stay high going forward to capture growth opportunities in line with our strategy.
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8 KPI HIGHLIGHTS LTM Share of private brand sales declined due to exceptionally strong growth of external brand sales 623 631 641 640 638 635 624 639 638 645 39% Q1 2023 40% Q2 2023 41% Q3 2023 42% Q4 2023 41% Q1 2024 41% Q2 2024 40% Q3 2024 39% Q4 2024 38% Q1 2025 37% Q2 2025 Net revenues, Private brand LTM (SEKm) Net Revenue, Private brand (% of net revenue) Trustpilot score stable at high level: 4.4/5.0 Q1 2023Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025 4,3 4,3 4,3 4,3 4,3 4,3 4,3 4,4 4,4 4,4 Aggregated Trustpilot scores
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9 KPI HIGHLIGHTS LTM (CONTINUED) Active customer base increasing AOV stable at a good level Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 1,106 1,083 1,070 1,021 1,016 1,004 1,001 1,042 1,052 1,089 Active customers LTM (000), end of period 972 999 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 1,641 Q1 2023 1,587 1,548 1,021 1,456 1,055 1,447 1,070 1,434 1,090 1,433 1,088 1,502 1,084 1,530 1,093 1,592 1,093 +9% Average order value LTM (SEK) Number of orders LTM (000)
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10 GROSS MARGIN Gross margin development since Q2 2023 • We observed a slight increase in in -freight costs in Q2 2025 vs the previous year while cost quarter over quarter decreased 0.9 ppt. • Market shipping rates from Asia for in -freight have been volatile , but we see a slight decrease since the end of 2024. • In -freight shipping prices impact cash and net working capital when inventory is purchased but are accounted for as costs of goods sold in the P&L at the point of sale - hence fluctuating shipping prices do not materialise in the P&L immediately. • We foresee continuing volatility in market freight prices (but unclear near -term trend in overall levels). We are taking active measures to limit the impact of volatility on actual (average) prices paid and manage any impact on future margins. Shipping costs in relation to revenues • Gross margin decreased slightly versus quarter two last year, but excluding effects from obsolescence, it increased slightly versus last year. • Main reason besides the effects from obsolescence is price decreases within our private brand assortment. • Looking ahead we judge that the market will remain price sensitive. • We prioritize increasing the gross profit in absolute terms by being price competitive without being the cheapest in the market. 42.1% Q2 2023 30.7% 42.8% Q3 2023 43.1% Q4 2023 45.6% 43.1% Q1 2024 44.1% 43.4% Q2 2024 Q4 2024 42.6% 45.5% 41.7% 43.2% Q1 2025 43.7% 44.7% 44.0%45.2% Q2 2025 42.0% Q3 2024 Gross margin (%), reported Gross margin (%), exlcluding the effect from obsolescence & scrapping 24 27 19 21 16 17 14 18 14 22 20 21 0 2 4 6 8 10 12 0 5 10 15 20 25 30 6.4% Q3 2022 6.2% Q4 2022 5.5% Q1 2023 4.9% Q2 2023 4.4% Q3 2023 4.4% Q4 2023 3.9% Q1 2024 3.9% Q2 2024 3.9% Q3 2024 4.8% Q4 2024 4.9% Q1 2025 4.0% Q2 2025 In-freight (SEKm) Cost in relation to Net revenue (%)
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11 ADJUSTED EBIT 17 32 42 8 Q2 2024 Q2 2025 2 Amortisation of trademarks Transformation costs Q2 2025 excl. other unusual items Adjusted EBIT Impact – Q2 2025 • Two items, not included in “Items Affecting Comparability,” impacted Adj. EBIT in Q2 2025. These are illustrated in the graph for comparability: o Amortisation of trademarks , SEK -2 m o Estimated transformation costs , SEK -8 m • Excluding these items, Adj. EBIT would have been approx. SEK 42m for Q2 2025. Transformation Costs • Amortization of trademarks relate to the decision in Q4 2023 to consolidate the smaller own brand trademarks into Proworks . • Transformation costs relate to the implementation of new SaaS systems, which cannot be capitalized. • These primarily consist of overlapping license fees and external consultant expenses linked to our transformation program. Outlook • The last amortization of trademarks will be in Q2 2026. • We expect transformation costs to decline significantly once our new technology stack is fully implemented by Q2 2026. 3.6% Adjusted EBIT margin (%) Adjusted EBIT vs last year, excluding unusual items 8.3% Adjusted EBIT (SEKm) 4.9%
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12 OVERHEAD COSTS DEVELOPMENT ▪ Cost increase of 5 SEKm ▪ 2025 Q2 has been impacted by transformation costs of 8 SEKm mainly related to our tech stack upgrade. Costs deriving from third party consultants (developers, project leaders etc.) and licensing costs on parallel systems. ▪ FX impact on cost has been approximately -2 SEKm ▪ Since the start of our transformation, we have right-sized the company by reducing our white-collar workforce by over 30%, from 256 in Q2 2023 to 176 in Q2 2025, while growing sales by 20%. ▪ Sales per white-collar FTE has thus increased by more than 70%. ▪ This has been achieved by simplifying processes, reducing bureaucracy, and empowering teams to make decisions. 67 67 72 59 69 65 76 72 74 0 5 10 15 20 25 0 10 20 30 40 50 60 70 80 15.3% Q2 2023 18.1% Q3 2023 18.8% Q4 2023 16.6% Q1 2024 15.1% Q2 2024 18.0% Q3 2024 17.0% Q4 2024 17.9% Q1 2025 14.1% Q2 2025 Overhead costs Overhead costs % of net revenue 256 257 250 198 202 202 201 189 176 147 142 138 128 128 122 119 122 127 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 White collars Blue collars
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13 NET WORKING CAPITAL DEVELOPMENT ▪ Net working capital (NWC) has during the fall 2024 and beginning of 2025 increased from an extra ordinary low point in Q2 2024, as a result of work to improve assortment and product availability and expansion of the private brand assortment ▪ NWC expected to stay above 2024 levels to ensure availability before and to capture growth opportunities in line with strategy ▪ Our targets are: – T o improve availability and improve customer experience even further without increasing inventory levels significantly by continuously improving our purchasing methodology – By acting early on slow moving stock, keep the stock fresh and healthy which of course is challenging as we have chosen to increase stock levels from approx. 300 to 500 MSEK NWC increased due to higher inventory levels 272 227 179 107 86 37 127 99 198 210 0 5 10 15 20 25 0 50 100 150 200 250 300 17.0% Q1 2023 14.3% Q2 2023 11.3% Q3 2023 7.0% Q4 2023 5.6% Q1 2024 2.4% Q2 2024 8.1% Q3 2024 6.1% Q4 2024 11.8% Q1 2025 12.1% Q2 2025 Net working capital, NWC (SEKm) Net working capital, % of Net Revenue, LTM (%) Extraordinary obsolescence provision 44 SEKm 464 459 377 344 332 307 400 419 490 522 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025Q1 2023 Inventory
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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15 Fuelling our growth and profits Strengthening Our Core We are expanding and refining our assortment, improving product availability, and shortening delivery times. In parallel, we are executing a major transformation of our IT landscape, replacing nearly all core systems. This is a critical step to overcome legacy tech debt and ensure long -term scala bility and performance. In Q2, we successfully launched two of our four major platforms: our Customer Data Platform (CDP) and our new Product Information Manag eme nt (PIM) system. These will enable us to increase personalization and product presentation which will improve the customer experience in an important way an d thus further fuel growth. The full roll -out of our new tech stack will be completed in the first quarter of 2026. Accelerating Geographic Expansion In 2025 and beginning of 2026, we will launch fully localized websites in 12 additional European markets – featuring local languages, payment methods, and delivery options. These markets already show above average growth via our .eu domain, and full localization is expected to unlock further potential. Scaling Adjacent Verticals We also see good growth opportunities in underpenetrated categories like mountain bike and moped/scooter. These can during th e c oming years be scaled efficiently through cross -selling and by leveraging existing infrastructure, with limited incremental investment. Positioning for Industry Consolidation The European e -commerce market for motorcycle gear and equipment is ripe for consolidation. The benefits of scale are clear, and it's a matter of when – not if – consolidation will occur. With our pan -European platform, Pierce is uniquely positioned to lead such a development. Balancing Margin and Growth We will continue to prioritize gross profit growth in absolute terms, as it is the best road to maximize both short and long -ter m profitability. While our onroad customer category – being larger and less penetrated – may grow faster than offroad, this shift may impact our margin percentage negatively. However, this growth provides leverage to negotiate better terms with suppliers. We also remain committed to expanding our high -margin private label portfolio . Leaving Negative Cost Gearing in our Rearview Mirror Our transition to a SaaS -based IT infrastructure is well underway. Although transformation costs cannot be capitalized, we are s till incurring depreciation on legacy on - premise systems – causing a temporary cost overlap. Once the migration is complete, both cost streams will taper off, enabling improved operating lever age from Q2 2026 and beyond. We expect this to yield some 30 -40 MSEK in additional EBIT on an annualized basis. We are on the right track We experienced strong headwinds in the first quarter and did a good bounce back in the second quarter . I remain fully confident in our strategic direction. 2025 will be heavily impacted by our transformation, but from this we will benefit for many years ahead.
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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17 Appendix Appendix
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18 CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2023 2024 Q2 2025 LTM Net Revenue 1,537 1,628 1,740 Growth (y/y) (%) -8% 6% 11% Growth in local currencies (y/y) (%) -13% 6% 13% Growth in private brand sales (y/y) (%) -1% 0% 2% Gross Profit 607 724 760 Gross margin (%) 39.5% 44.5% 43.7% Variable sales- and distribution costs -351 -363 -389 Variable sales- and distribution costs (%) -22.8% -22.3% -22.4% Profit after variable costs 256 361 371 Profit after variable costs (%) 16.7% 22.2% 21.3% Overhead costs -267 -270 -288 Overhead costs (%) -17.4% -16.6% -16.5% Adjusted EBITDA -11 91 83 Adjusted EBITDA margin (%) -0.7% 5.6% 4.8% Depreciation, amortisation and impairment -75 -66 -61 D&A (% of net revenue) -4.9% -4.0% -3.5% Adjusted EBIT -85 25 22 Adjusted EBIT margin (%) -5.6% 1.5% 1.3% Items affecting comparability (IAC) -42 -7 -17 IAC (% of net revenue) -2.7% -0.4% -1.0%
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19 QUARTERLY CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q1 Q2 Q2 LTM Net Revenue 345 441 369 382 1,537 356 456 365 451 1,628 401 523 1,740 Growth (y/y) (%) -18% -2% -1% -10% -8% 3% 3% -1% 18% 6% 13% 15% 11% Growth in local currencies (y/y) (%) -22% -7% -9% -15% -13% 2% 2% 1% 19% 6% 12% 20% 13% Growth in private brand sales (y/y) (%) -15% 5% 7% -1% -1% -2% -2% -7% 9% 0% -1% 4% 2% Gross Profit¹ 137 186 113 171 607 162 201 166 195 724 171 229 760 Gross margin (%) 39.7% 42.1% 30.7% 44.7% 39.5% 45.6% 44.1% 45.5% 43.2% 44.5% 42.6% 43.7% 43.7% Variable sales- and distribution costs -83 -98 -79 -91 -351 -80 -98 -84 -102 -363 -95 -109 -389 Variable sales- and distribution costs (%) -24.1% -22.1% -21.4% -23.8% -22.8% -22.5% -21.4% -23.0% -22.5% -22.3% -23.6% -20.9% -22.4% Profit after variable costs 54 88 34 80 256 82 104 82 93 361 76 120 371 Profit after variable costs (%) 15.6% 20.0% 9.3% 20.9% 16.7% 23.1% 22.7% 22.5% 20.6% 22.2% 19.0% 22.8% 21.3% Overhead costs -61 -67 -67 -72 -267 -59 -69 -65 -76 -270 -72 -74 -288 Overhead costs (%) -17.7% -15.3% -18.1% -18.8% -17.4% -16.6% -15.1% -18.0% -17.0% -16.6% -17.9% -14.1% -16.5% Adjusted EBITDA -7 21 -32 8 -11 23 35 17 16 91 4 46 83 Adjusted EBITDA margin (%) -2.1% 4.7% -8.7% 2.1% -0.7% 6.5% 7.6% 4.6% 3.6% 5.6% 1.1% 8.7% 4.8% Depreciation, amortisation and impairment -14 -14 -15 -32 -75 -16 -18 -17 -15 -66 -15 -13 -61 D&A (% of net revenue) -4.0% -3.2% -3.9% -8.4% -4.9% -4.4% -3.9% -4.6% -3.4% -4.0% -3.8% -2.6% -3.5% Adjusted EBIT -21 6 -47 -7 -69 7 17 0 1 25 -11 32 22 Adjusted EBIT margin (%) -6.2% 1.5% -12.7% -1.9% -4.5% 2.0% 3.7% -0.0% 0.3% 1.5% -2.7% 6.2% 1.3% Items affecting comparability (IAC) 0 -4 -1 -38 -42 0 0 0 -6 -7 -4 -7 -17 IAC (% of net revenue) -0.0% -0.9% -0.2% 9.8% -2.7% -0.0% -0.0% -0.0% -1.4% -0.4% -0.9% -1.3% -1.0% ¹ Revaluation of working capital items 0 0 -1 0 1 -1 -1 2 -3 0 1 3 -1 Number of orders (000) 354 429 332 342 1,456 344 416 332 411 1,502 372 477 1,592 Average order value (AOV) (SEK) 974 1,028 1,110 1,119 1,055 1,034 1,097 1,100 1,098 1,084 1,078 1,096 1,093 Net revenue from private brands 145 187 148 160 640 142 185 137 175 639 141 191 645 Active customers, LTM (000) 1,106 1,083 1,070 1,021 1,021 1,016 1,004 1,001 1,042 1,042 1,052 1,089 1,089 1) Exchange rate revaluation of working capital items are included in cost of goods sold. 2023 2024 2025
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20 QUARTERLY CONSOLIDATED NET WORKING CAPITAL 1) Defined as cost of goods sold LTM divided by end of quarter inventory. 2023 SEKm (unless stated otherwise) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Physical stock 283 274 233 280 301 385 422 Goods in transit 61 58 74 121 118 105 100 Inventory 344 332 307 400 419 490 522 Working capital assets 14 25 27 26 24 35 31 Working capital liabilities -251 -270 -297 -299 -344 -327 -343 Net working capital 107 86 37 127 99 198 210 As % of net revenue LTM 7.0% 5.6% 2.4% 8.1% 6.1% 11.8% 12.0% Stock turnover¹ 2.7x 2.8x 3x 2.1x 2.2x 1.9x 1.9x Inventory % of net revenue LTM 22.4% 21.5% 19.7% 25.7% 25.7% 29.3% 30.0% 2024 2025
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21 CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS Jul 2024- Jan-Dec SEKm 2025 2024 2025 2024 Jun 2025 2024 Net revenue 523 456 925 812 1,740 1,628 Cost of goods sold -295 -255 -525 -448 -980 -903 Gross profit 229 201 400 364 760 724 Sales and distribution costs -148 -137 -280 -253 -541 -515 Administration costs -58 -47 -110 -90 -217 -196 Other operating income- and expenses 2 0 1 3 1 5 Operating profit 26 17 11 24 6 18 Financial net -3 -2 -21 16 -14 24 Profit/loss before tax 23 14 -10 40 -8 42 Tax 0 -1 -1 -1 -6 -6 Profit/loss for the period 23 14 -11 39 -14 36 Apr-Jun Jan-Jun
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22 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 30 Jun 2025 30 Jun 2024 31 Dec 2024 Intangible assets 273 295 281 Property, plant and equipment 12 14 15 Right-of-use assets 139 47 54 Financial assets 19 5 6 Deferred tax assets 2 7 2 Total non-current assets 444 367 358 Inventory 522 307 419 Other current assets 33 29 29 Cash and cash equivalents 188 350 297 Total current assets 742 687 745 Total assets 1,186 1,054 1,103 Total equity 658 668 666 Leasing liabilities 104 17 25 Deferred tax liabilities 24 26 25 Provisions 0 0 0 Total non-current liabilities 128 43 50 Leasing liabilities 32 30 27 Trade payables 113 99 111 Other current liabilities 255 214 248 Total current liabilities 400 343 386 Total equity and liabilities 1,186 1,054 1,103
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23 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Jul 2024- Jan-Dec SEKm NOTE 2025 2024 2025 2024 Jun 2025 2024 Operating profit A 26 17 11 24 6 18 Adjustments for non-cash items B 13 19 35 40 65 69 Paid interest -2 -1 -4 -2 -5 -4 Received interest 1 2 1 4 5 8 Realised currency derivatives -2 1 -2 2 0 4 Paid/received tax -1 -1 -2 -2 -4 -4 Cash flow from operating activities before changes in net working capital 34 37 39 65 66 92 Changes in net working capital C 0 57 -115 93 -195 13 Cash flow from operating activities 34 93 -75 158 -129 105 Investing activities Investments in non-current assets D -1 0 -4 -2 -9 -6 Paid/received blocked funds -14 -2 -14 -2 -14 -2 Cash flow from investing activities -15 -3 -18 -4 -23 -8 Financing activities Share issue costs 0 0 0 0 0 0 Change in utilised credit facility - - - - - - Repayment of liabilities to credit institutions¹ - - - - - - Repayment of leasing liabilities E -7 -7 -14 -14 -29 -29 Cash flow from financing activities -7 -7 -14 -14 -29 -29 Cash flow for the period 13 83 -108 140 -180 68 Cash and cash equivalents at the beginning of period 175 278 297 222 350 222 Exchange rate difference 0 -11 -2 -12 18 7 Cash and cash equivalents end of period 188 350 188 350 188 297 Operating cash flow before IFRS 16 interest A+B+C+D+E 31 84 -87 141 -162 66 Interest IFRS 16 -2 -1 -3 -1 -4 -2 Operating cash flow 29 83 -90 140 -166 63 1) Including capitalised interest expenses. Apr-Jun Jan-Jun
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24 RECONCILIATION OF ADJUSTED FINANCIALS Jul 2024- Jan-Dec SEKm 2025 2024 2025 2024 Jun 2025 2024 Net revenue 523 456 925 812 1,740 1,628 Cost of goods sold -295 -255 -525 -448 -980 -903 Variable sales- and distribution costs -109 -98 -204 -178 -389 -363 Other costs¹ -94 -87 -185 -162 -365 -342 EBIT 26 17 11 24 6 18 Reconciliation of adj. EBIT and adj. EBITDA EBIT 26 17 11 24 6 18 IAC related to: IPO-costs - - - - - - Restructuring expenses 0 0 0 0 0 0 Share-based payments 0 0 -1 0 -1 -1 Share-based payments (social costs) 0 0 0 0 0 0 Goodwill impairment - - - - - - Other costs (XO) -6 - -9 - -15 -5 Adjusted EBIT 32 17 21 24 22 25 Adjusted EBIT margin (%) 6.2% 3.7% 2.3% 2.9% 1.3% 1.5% Depreciation -9 -9 -18 -17 -36 -35 Amortisation -4 -9 -11 -17 -25 -31 Goodwill impairment - - - - - - (of which PPA amortisations included in adjusted EBIT) -2 -2 -3 -3 -7 -7 Adjusted EBITDA 46 35 50 58 83 91 Adjusted EBITDA margin (%) 8.7% 7.6% 5.4% 7.1% 4.8% 5.6% 1) Other costs mainly consist of non-variable sales- and distribution costs, administration costs and other operating expenses/income. Jan-JunApr-Jun
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25 Pierce Group's mid to long term financial targets Financial targets • Net revenue growth: In the medium to long term (3 -5 years), organically outgrow the European online market for motorcycle gear, accessories and parts. • Adjusted EBIT margin: In the medium to long term (3 -5 years), achieve an adjusted EBIT margin of 5 -8%. • Capital structure: Net debt/ EBITDA * not exceeding 2.0x, subject to temporary flexibility for strategic initiatives. • Dividend policy: Over the next few years, the Company plans to use free cashflows** for continued development*** and does not intend to pay dividends to shareholders. * Net debt in relation to last twelve month adjusted EBITDA, excluding IFRS 16 effects. ** Free cashflow refers to cashflow from ongoing operations and investment activities. *** Development means investments in, for instance, IT -hardware, IT -development, expansion of distribution warehouse, marketing, customer acquisitions, business acquisitions and acquisitions of net assets.