Slides
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Interim Report Q3 2025 November 12th 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 170 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, Q3 2025 LTM THIS IS PIERCE Brand revenue split3, Q3 2025 LTM 31% Nordics 69% Outside Nordics 62% Offroad 34%Onroad 4% Other Net revenue split, Q3 2025 LTM 56% Gear 19% Parts 20% Accessories 5% Other Net revenue split, Q3 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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INVESTMENT CASE MID-RANGE GOALS EXPAND EXPANSION-READY MODELENHANCE Pierce is the undisputed leader in Europe’s online market for motorcycle gear, accessories, and parts The total accessible market in Europe is 100 BSEK with some 20% online penetration while it is highly favourable for e-commerce, leaving untapped growth potential from continuous online migration, especially in southern and eastern Europe The market remains fragmented and is ripe for consolidation and as the largest and only pan-European e-commerce retailer, Pierce is uniquely positioned to drive such consolidation and lead the industry transformation Pierce has recently demonstrated strong momentum in growth, profitability and scalability upon overcoming post-Covid challenges Pierce has significantly enhanced the customer experience by broadening and deepening its product offering, reducing lead times, and elevating service levels — yielding stronger customer acquisition, higher satisfaction, and improved retention Pierce is undertaking a major transformation of its IT platform to significantly enhance performance and scalability. Pierce has achieved a 67% increase in sales per FTE over the past two years, highlighting the strong scalability of its business model. Pierce is expanding its presence from 16 to 28 markets by adding 12 new local markets previously served by the .eu domain Pierce has an ambition to grow its own brand sales by expanding and improving the assortment rapidly Pierce is expanding its offering into the Mountain bike and Moped/Scooter segments to untap further growth potential Grow faster than the market Profitability of 5-8% Net debt / EBITDA ≤ 2.0x Pierce fuel growth first. We reinvest to expand our reach and strengthen market leadership PIERCE HAS A UNIQUE POSITION RIPE FOR CONSOLIDATION Pierce is the largest and only listed online retailer in the market Pierce is the only pan-European player with localized sites in 20 (soon 28) markets Pierce has a unique assortment with the largest sales share (40%) of own brands paired with one of the widest selection of external brands in the market The direct competitors are local champions with a large share of their sales in their home markets. Three of the largest players have financial owners which should facilitate market consolidation There are significant economies of scale to be gained both in top line, gross margin and opex to be gained ACTIVE OWNERS Active ownership from major shareholders like Verdane, SIBA Invest and Garn Invest in addition to institutions and individuals including CEO, top management and Board of Directors
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8 Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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9 Q3 SUMMARY SEKm Q3 2025 Q3 2024 Q3 2025 LTM Net Revenue 427 365 1,803 Growth, Year over Year % 17% -1% 16% Gross Profit 171 166 765 Gross Margin % 40.1% 45.5% 42.5% Variable Costs -87 -84 -392 Variable costs % 20.3% 23.0% -21.8% Profit after variable costs 84 82 373 Profit after variable costs % 19.7% 22.5% 20.7% Overhead costs -61 -65 -283 Overhead costs % 14.2% 18.0% -15.7% Adjusted EBITDA 24 17 90 Adjusted EBITDA % 5.5% 4.6% 5.0% Depreciation & Amortization -12 -17 -56 Depreciation & Amortization % 2.9% 4.6% -3.1% Adjusted EBIT 11 0 34 Adjusted EBIT % 2.7% 0.0% 1.9% Inventory 490 400 490 Cash 161 261 161 Cash Flow -22 -105 -97 Continued strong growth • Q3 17% growth YoY, 20% in local currency. Growth primarily driven by improved stock availability of external brands. • LTM growth has been very strong totalling 16% • The quarter started very strong. Sales growth abated slightly towards the end of the quarter. Decrease in gross margin and decreasing variable costs • Gross margin decreased vs. last year with 5.5 ppt to 40.1% primarily due to obsolescence effects versus last year and a focus to sell out slow moving stock. • Variable costs decreased as a share of net revenue which was 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 decreased with 5 SEKm vs. last year to 61 SEKm in-spite of 6 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 0 SEKm last year to 11 SEKm, in spite of high obsolescence of 13 SEKm, transformation cost of 6 SEKm and brand depreciation of 2 SEKm. Solid cash position • Cash end of Q3 was 161 SEKm, a decline from an exceptionally high cash level during 2024, but still a very solid level. • Inventory levels were slightly lower than last quarter but higher than last year and will likely stay at similar levels going forward to capture growth opportunities in line with our strategy. • Cash flow was negative, mainly due to temporary prepayments to large suppliers to secure stock as we exceeded certain supplier credit limits.
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10 KPI HIGHLIGHTS LTM Share of private brand sales declined due to exceptionally strong growth of external brand sales 631 641 640 638 635 624 639 638 645 665 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 37% Q3 2025 Net revenues, Private brand LTM (SEKm) Net Revenue, Private brand (% of net revenue) Trustpilot score stable at high level: 4.4/5.0 Q2 2023Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025 4,3 4,3 4,3 4,3 4,3 4,3 4,4 4,4 4,4 4,4 Aggregated Trustpilot scores
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11 KPI HIGHLIGHTS LTM (CONTINUED) Active customer base increasing AOV increasing slightly Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 1,083 1,070 1,021 1,016 1,004 1,001 1,042 1,052 1,089 1,119 Active customers LTM (000), end of period 999 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 1,4561,587 1,548 1,021 Q2 2023 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 1,637 1,101 +8% Average order value LTM (SEK) Number of orders LTM (000)
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12 GROSS MARGIN Gross margin development since Q3 2023 • We observed an increase in in -freight costs in Q3 2025 vs the previous year while cost quarter over quarter remains stable. • 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 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 compared to last year . E xcluding the impact of obsolescence, the decline was smaller and mainly driven by mix effects and more aggressive pricing on overstocked products. • We aim to grow gross profit by staying price competitive, without being the cheapest in the market, and with consideration of margin levels. 42.8% Q3 2023 44.7% 43.1% Q4 2023 45.6% 30.7% 43.1% Q1 2024 44.1% 43.4% Q2 2024 45.5% 41.7% 42.0% Q1 2025 45.2% 43.2% 44.0% Q4 2024 Q2 2025 43.7% 42.6% 43.1% Q3 2024 Q3 2025 40.1% Gross margin (%), reported Gross margin (%), exlcluding the effect from obsolescence & scrapping 27 19 21 16 17 14 18 14 22 20 21 17 0 2 4 6 8 10 12 0 5 10 15 20 25 30 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 Q1 2025 Q2 2025 Q3 2025 4.9% 4.0% 4.0% In-freight (SEKm) Cost in relation to Net revenue (%)
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13 ADJUSTED EBIT 0 11 19 2 6 Q3 2024 Q3 2025 Amortisation of trademarks Transformation costs Q3 2025 excl. other unusual items Adjusted EBIT Impact – Q3 2025 • Two items, not included in “Items Affecting Comparability,” impacted Adj. EBIT in Q3 2025. These are illustrated in the graph for comparability: o Amortisation of trademarks , SEK -2 m o Estimated transformation costs , SEK -6 m • Excluding these items, Adj. EBIT would have been approx. SEK 19 m for Q 3 2025. • On top of this we made an extra ordinary obsolescence provision of SEK 13m which was related to last year’s large inventory increase. 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 end of Q1 2026. -0.0% Adjusted EBIT margin (%) Adjusted EBIT vs last year, excluding unusual items 4.5% Adjusted EBIT (SEKm) 2.7% 17 34 69 7 29 Q3 2024 LTM Q3 2025 LTM Amortisation of trademarks Transformation costs Q3 2025 LTM excl. other unusual items 1.1% Adjusted EBIT margin LTM (%) 3.9% Adjusted EBIT LTM (SEKm) 1.9%
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14 OVERHEAD COSTS DEVELOPMENT ▪ Cost decrease of 5 SEKm ▪ 2025 Q3 has been impacted by transformation costs of 6 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 -1 SEKm ▪ Since the start of our transformation, we have right-sized the company by reducing our white-collar workforce by over 35%, from 256 in Q2 2023 to 166 in Q3 2025, while growing net revenue by 18% in local currency (LTM). ▪ Sales per white-collar FTE has thus increased by approx. 80%. ▪ This has been achieved by simplifying processes, reducing bureaucracy, and empowering teams to make decisions. 67 72 59 69 65 76 72 74 61 0 5 10 15 20 25 0 10 20 30 40 50 60 70 80 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 14.2% Q3 2025 Overhead costs Overhead costs % of net revenue 257 250 198 202 202 201 189 176 166 142 138 128 128 122 119 122 127 127 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 White collars Blue collars
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15 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 ▪ NWC increased primarily due to a temporary increase in pre-payments to secure stock as we exceeded credit limits with certain large suppliers ▪ 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 NWC increased due to higher inventory levels 227 179 107 86 37 127 99 198 210 234 0 5 10 15 20 25 0 50 100 150 200 250 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 12.0% Q2 2025 13.0% Q3 2025 Net working capital, NWC (SEKm) Net working capital, % of Net Revenue, LTM (%) Extraordinary obsolescence provision 44 SEKm 459 377 344 332 307 400 419 490 522 490 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Inventory
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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17 Outlook & Growth Drivers Pierce 2.0 transformation Enhanced fundamentals : customer experience, streamlining operations and improve scalability Has delivered very strong growth (18% LTM) and profitability improvements Completion targeted by end of Q1 2026 (final two systems live) Negative cost gearing comes to an end in Q2 2026, yielding 30 -40 MSEK EBIT annualized Growth from stronger fundamentals will moderate as we face tougher comparables Focus on expanding reach across markets and verticals to sustain momentum Localisation of 12 markets from our pan -European site to drive long -term growth Gain momentum in MTB and scooter/moped categories Gradual build -up with measured investments and cross -sales synergies Meaningful contribution expected from 2026 onward European motorcycle e -commerce remains fragmented and ripe for consolidation Scale advantages strong on a tech -enabled platform The largest , only pan -European , and only listed player Pierce is uniquely positioned to take part in market consolidation ENHANCE 2023- EXPAND 2026- OPTION: CONSOLIDATE
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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19 Appendix Appendix
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20 CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2023 2024 Q3 2025 LTM Net Revenue 1,537 1,628 1,803 Growth (y/y) (%) -8% 6% 16% Growth in local currencies (y/y) (%) -13% 6% 18% Growth in private brand sales (y/y) (%) -1% 0% 7% Gross Profit 607 724 765 Gross margin (%) 39.5% 44.5% 42.5% Variable sales- and distribution costs -351 -363 -392 Variable sales- and distribution costs (%) -22.8% -22.3% -21.8% Profit after variable costs 256 361 373 Profit after variable costs (%) 16.7% 22.2% 20.7% Overhead costs -267 -270 -283 Overhead costs (%) -17.4% -16.6% -15.7% Adjusted EBITDA -11 91 90 Adjusted EBITDA margin (%) -0.7% 5.6% 5.0% Depreciation, amortisation and impairment -75 -66 -56 D&A (% of net revenue) -4.9% -4.0% -3.1% Adjusted EBIT -85 25 34 Adjusted EBIT margin (%) -5.6% 1.5% 1.9% Items affecting comparability (IAC) -42 -7 -21 IAC (% of net revenue) -2.7% -0.4% -1.2%
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21 QUARTERLY CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q1 Q2 Q3 Q3 LTM Net Revenue 345 441 369 382 1,537 356 456 365 451 1,628 401 523 427 1,803 Growth (y/y) (%) -18% -2% -1% -10% -8% 3% 3% -1% 18% 6% 13% 15% 17% 16% Growth in local currencies (y/y) (%) -22% -7% -9% -15% -13% 2% 2% 1% 19% 6% 12% 20% 20% 18% Growth in private brand sales (y/y) (%) -15% 5% 7% -1% -1% -2% -2% -7% 9% 0% -1% 4% 15% 7% Gross Profit¹ 137 186 113 171 607 162 201 166 195 724 171 229 171 765 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% 40.1% 42.5% Variable sales- and distribution costs -83 -98 -79 -91 -351 -80 -98 -84 -102 -363 -95 -109 -87 -392 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% -20.3% -21.8% Profit after variable costs 54 88 34 80 256 82 104 82 93 361 76 120 84 373 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% 19.7% 20.7% Overhead costs -61 -67 -67 -72 -267 -59 -69 -65 -76 -270 -72 -74 -61 -283 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% -14.2% -15.7% Adjusted EBITDA -7 21 -32 8 -11 23 35 17 16 91 4 46 24 90 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% 5.5% 5.0% Depreciation, amortisation and impairment -14 -14 -15 -32 -75 -16 -18 -17 -15 -66 -15 -13 -12 -56 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% -2.9% -3.1% Adjusted EBIT -21 6 -47 -7 -69 7 17 0 1 25 -11 32 11 34 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% 2.7% 1.9% Items affecting comparability (IAC) 0 -4 -1 -38 -42 0 0 0 -6 -7 -4 -7 -4 -21 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% -1.2% ¹ Revaluation of working capital items 0 0 -1 0 1 -1 -1 2 -3 0 1 3 -1 -1 Number of orders (000) 354 429 332 342 1,456 344 416 332 411 1,502 372 477 376 1,637 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 1,134 1,101 Net revenue from private brands 145 187 148 160 640 142 185 137 175 639 141 191 157 665 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 1,119 1,119 1) Exchange rate revaluation of working capital items are included in cost of goods sold. 20252023 2024
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22 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 Q3 Physical stock 283 274 233 280 301 385 422 422 Goods in transit 61 58 74 121 118 105 100 68 Inventory 344 332 307 400 419 490 522 490 Working capital assets 14 25 27 26 24 35 31 23 Working capital liabilities -251 -270 -297 -299 -344 -327 -343 -279 Net working capital 107 86 37 127 99 198 210 234 As % of net revenue LTM 7.0% 5.6% 2.4% 8.1% 6.1% 11.8% 12.0% 13.0% Stock turnover¹ 2.7x 2.8x 3x 2.1x 2.2x 1.9x 1.9x 2.1x Inventory % of net revenue LTM 22.4% 21.5% 19.7% 25.7% 25.7% 29.3% 30.0% 27.2% 2024 2025
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23 CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS Oct 2024- Jan-Dec SEKm 2025 2024 2025 2024 Sep 2025 2024 Net revenue 427 365 1,352 1,177 1,803 1,628 Cost of goods sold -256 -199 -781 -647 -1,037 -903 Gross profit 171 166 571 530 765 724 Sales and distribution costs -120 -120 -400 -373 -541 -515 Administration costs -45 -47 -155 -137 -215 -196 Other operating income- and expenses 1 1 2 4 3 5 Operating profit 7 0 18 23 13 18 Financial net -5 -1 -26 15 -17 24 Profit/loss before tax 2 -1 -8 38 -4 42 Tax 0 -1 0 -1 -5 -6 Profit/loss for the period 2 -2 -9 37 -9 36 Jul-Sep Jan-Sep
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24 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 30 Sep 2025 30 Sep 2024 31 Dec 2024 Intangible assets 270 286 281 Property, plant and equipment 12 14 15 Right-of-use assets 133 40 54 Financial assets 19 5 6 Deferred tax assets 2 7 2 Total non-current assets 436 352 358 Inventory 490 400 419 Other current assets 25 28 29 Cash and cash equivalents 161 261 297 Total current assets 676 690 745 Total assets 1,112 1,041 1,103 Total equity 660 666 666 Leasing liabilities 99 10 25 Deferred tax liabilities 24 25 25 Provisions 0 0 0 Total non-current liabilities 123 36 50 Leasing liabilities 33 29 27 Trade payables 99 119 111 Other current liabilities 195 193 248 Total current liabilities 329 340 386 Total equity and liabilities 1,112 1,041 1,103
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25 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Oct 2024- Jan-Dec SEKm NOTE 2025 2024 2025 2024 Sep 2025 2024 Operating profit A 7 -0 18 23 13 18 Adjustments for non-cash items B 6 12 40 52 58 69 Paid interest -2 -1 -6 -3 -7 -4 Received interest 0 2 1 6 3 8 Realised currency derivatives -2 0 -4 2 -2 4 Paid/received tax -1 -1 -3 -3 -4 -4 Cash flow from operating activities before changes in net working capital 8 12 47 78 61 92 Changes in net working capital C -24 -108 -138 -15 -110 13 Cash flow from operating activities -16 -96 -92 62 -49 105 Investing activities Investments in non-current assets D -1 -2 -6 -4 -8 -6 Paid/received blocked funds 0 0 -14 -2 -14 -2 Cash flow from investing activities -1 -2 -20 -6 -22 -8 Financing activities Share issue costs - - 0 0 0 0 Issue of warrants including issue costs 1 - 1 - 1 - Change in utilised credit facility - - - - - - Repayment of liabilities to credit institutions¹ 2 - 2 - 2 - Repayment of leasing liabilities E -7 -7 -21 -21 -28 -29 Cash flow from financing activities -4 -7 -18 -21 -26 -29 Cash flow for the period -22 -105 -129 35 -97 68 Cash and cash equivalents at the beginning of period 188 350 297 222 261 222 Exchange rate difference -5 16 -7 4 -4 7 Cash and cash equivalents end of period 161 261 161 261 161 297 Operating cash flow before IFRS 16 interest A+B+C+D+E -20 -106 -107 35 -76 66 Interest IFRS 16 -2 -0 -5 -2 -5 -2 Operating cash flow -21 -106 -111 33 -81 63 1) Including capitalised interest expenses. Jul-Sep Jan-Sep
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26 RECONCILIATION OF ADJUSTED FINANCIALS Oct 2024- Jan-Dec SEKm 2025 2024 2025 2024 Sep 2025 2024 Net revenue 427 365 1,352 1,177 1,803 1,628 Cost of goods sold -256 -199 -781 -647 -1,037 -903 Variable sales- and distribution costs -87 -84 -291 -262 -392 -363 Other costs¹ -77 -82 -262 -245 -360 -342 EBIT 7 -0 18 23 13 18 Reconciliation of adj. EBIT and adj. EBITDA EBIT 7 -0 18 23 13 18 IAC related to: IPO-costs - - - - - - Restructuring expenses - 0 0 0 -0 0 Share-based payments 0 0 -1 0 -2 -1 Share-based payments (social costs) 0 0 -1 0 -1 0 Goodwill impairment - - - - - - Other costs (XO) -4 - -13 - -18 -5 Adjusted EBIT 11 -0 33 24 34 25 Adjusted EBIT margin (%) 2.7% 0.0% 2.4% 2.0% 1.9% 1.5% Depreciation -9 -9 -27 -26 -36 -35 Amortisation -3 -8 -14 -25 -20 -31 Goodwill impairment - - - - - - (of which PPA amortisations included in adjusted EBIT) -2 -2 -5 -5 -7 -7 Adjusted EBITDA 24 17 73 74 90 91 Adjusted EBITDA margin (%) 5.5% 4.6% 5.4% 6.3% 5.0% 5.6% 1) Other costs mainly consist of non-variable sales- and distribution costs, administration costs and other operating expenses/income. Jan-SepJul-Sep
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27 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.