Slides
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Interim Report Q4 2025 February 20th 2026
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T oday's Presenters Göran Dahlin CEO Fredrik Kjellgren CFO
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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Pierce Group Europe’s #1 Online Destination for Motorcycle Gear & Equipment
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Everything that you need when you ride a motorcycle. Except the motorcycle. Pierce Group
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>1 million customers. 1.8 M followers on Social Media. Offering more than 200,000 products. Local sites in 20 countries. Central warehouse in Poland. 1.8 BSEK Sales 5% EBITDA 290 employees. Everything you need when you ride a motorcycle NASDAQ Sthlm since 2021. Pan-European e-commerce company. Founded in Stockholm 2008.
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Motocross ~60% of Sales 10 BSEK market >10% markets share Three Stores Motorcycle ~35% of Sales 90 BSEK market <1% market share Snowmobile ~5% of Sales 2 BSEK market ~5% market share
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Broad product offering Gear & Protection 60% Fashion Innovation Parts & Accessories 40% Function Wear & Tear Pan-European 35% 60% 35% private brand 65% external brands Office Central warehouse
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E-commerce penetration Superior Selection & Availability Increasing base of motorcycle riders (electrification will further drive this) Niche well suited for e-commerce Underlying growth Lower Higher Offroad Onroad Higher Lower
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11 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 FR champion online, onroad Sportsbikeshop UK Omni Financial 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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13 Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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14 Q4 SUMMARY SEKm Q4 2025 Q4 2024 2025 FY Net Revenue 464 451 1,816 Growth, Year over Year % 3% 18% 12% Gross Profit 202 195 773 Gross Margin % 43.5% 43.2% 42.6% Variable Costs -104 -102 -394 Variable costs % 22.3% 22.5% -21.7% Profit after variable costs 98 93 378 Profit after variable costs % 21.2% 20.6% 20.8% Overhead costs -75 -76 -281 Overhead costs % 16.1% 17.0% -15.5% Adjusted EBITDA 24 16 97 Adjusted EBITDA % 5.1% 3.6% 5.3% Depreciation & Amortization -11 -15 -52 Depreciation & Amortization % 2.3% 3.4% 2.8% Adjusted EBIT 13 1 45 Adjusted EBIT % 2.8% 0.3% 2.5% Inventory 451 419 451 Cash 235 297 235 Cash Flow 79 32 -50 Strong improvement in Adjusted EBIT for the quarter • Adjusted EBIT strengthen from 1 SEKm last year to 13 SEKm, in spite of high, transformation cost of 7 SEKm and brand depreciation of 1 SEKm. Continued growth • Q4 3% growth YoY, 7% in local currency. Growth primarily driven by improved stock availability of external brands and strong marketing activities. • LTM growth has been very strong totalling 14% in local currency. Slight increase in gross margin and decrease in variable costs • Gross margin increased slightly vs. last year with 0.3 ppt to 43.5% primarily due to obsolescence effects versus last year and improved purchasing terms. • Variable costs decreased slightly as a share of net revenue which was a result of our focus to improve efficiency in our performance marketing expenditure. • Together these made our contribution margin increase with 0.6 ppt. Decrease in OpEx in-spite of volume growth and transformation cost • Our Overhead costs decreased with 1 SEKm vs. last year to 75 SEKm in-spite of 7 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. Solid cash position • Cash end of Q4 was solid 235 SEKm. • 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 positive, mainly due to execution during the peak trading period, including Black Month and the holiday season, which contributed positively to cash flow from operations.
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15 KPI HIGHLIGHTS LTM Share of private brand sales declined slightly over the year due to exceptionally strong growth of external brand sales 641 640 638 635 624 639 638 645 665 654 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 36% Q4 2025 Net revenues, Private brand LTM (SEKm) Net Revenue, Private brand (% of net revenue) Trustpilot score stable at high level: 4.4/5.0 Q3 2023Q4 2023Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025 4,3 4,3 4,3 4,3 4,3 4,4 4,4 4,4 4,4 4,4 Aggregated Trustpilot scores
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16 KPI HIGHLIGHTS LTM (CONTINUED) Active customer base increasing AOV increasing slightly YoY Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 1,070 1,021 1,016 1,004 1,001 1,042 1,052 1,089 1,119 1,133 Active customers LTM (000), end of period Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 1,055 1,548 1,021 1,456 Q3 2023 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 1,654 1,098 +4% Average order value LTM (SEK) Number of orders LTM (000)
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17 GROSS MARGIN Gross margin development since Q4 2023 • We observed a decrease in in -freight costs in Q4 2025 vs the previous year while cost quarter over quarter increased. • 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 increased compared to last year. The increase was mainly driven by reversal of obsolescence reserve and lower in freight costs, • We aim to grow gross profit by staying price competitive, without being the cheapest in the market, and with consideration of margin levels. 43.1% Q4 2023 45.6% 43.1% Q1 2024 44.1% 43.4% Q2 2024 45.5% 45.2% Q3 2024 43.2% 42.0% 42.6% Q1 2025 43.7% Q4 2024 44.0% 41.7% Q2 2025 40.1% 43.1% Q3 2025 43.5% 41.9% Q4 2025 44.7% Gross margin (%), reported Gross margin (%), exlcluding the effect from obsolescence & scrapping 19 21 16 17 14 18 14 22 20 21 17 20 0 2 4 6 8 10 12 0 2 4 6 8 10 12 14 16 18 20 22 3.9% Q1 2024 3.9% Q2 2024 3.9% Q3 2024 5.5% Q4 2024 4.9% Q1 2025 4.0% Q2 2025 4.0% Q1 2023 Q3 2025 4.3% Q4 2025 4.9% Q2 2023 4.4% Q3 2023 4.4% Q4 2023 4.8% In-freight (SEKm) Cost in relation to Net revenue (%)
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18 ADJUSTED EBIT 1 13 21 7 Q4 2024 Q4 2025 1 Amortisation of trademarks Transformation costs Q4 2025 excl. other unusual items Adjusted EBIT Impact – Q4 2025 • Two items, not included in “Items Affecting Comparability,” impacted Adj. EBIT in Q4 2025. These are illustrated in the graph for comparability: o Amortisation of trademarks , SEK -1 m o Estimated transformation costs , SEK -7 m • Excluding these items, Adj. EBIT would have been approx. SEK 21 m for Q 4 2025 and 81 MSEK 2025 YTD . 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 during H1 2026 . 0.3% Adjusted EBIT margin (%) Adjusted EBIT vs last year, excluding unusual items 4.5% Adjusted EBIT (SEKm) 2.8% 25 45 81 6 29 2024 YTD 2025 YTD Amortisation of trademarks Transformation costs 2025 YTD excl. other unusual items 1.5% Adjusted EBIT margin YTD (%) 4.4% Adjusted EBIT YTD (SEKm) 2.5%
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19 OVERHEAD COSTS DEVELOPMENT ▪ OpEx decreased slightly Y oY ▪ 2025 Q4 has been impacted by transformation costs of 7 SEKm mainly related to our tech stack upgrade. Costs deriving from third party consultants (developers, project leaders etc.) and licensing costs on parallel systems. ▪ Since the start of our transformation, we have right-sized the company by reducing our white-collar workforce by 38%, from 256 in Q2 2023 to 159 in Q4 2025, while growing net revenue by 15% in local currency. ▪ Sales per white-collar FTE has thus increased by approx. 84%. ▪ This has been achieved by simplifying processes, reducing bureaucracy, and empowering our teams. 72 59 69 65 76 72 74 61 75 0 5 10 15 20 25 0 10 20 30 40 50 60 70 80 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 16.1% Q4 2025 Overhead costs Overhead costs % of net revenue 250 198 202 202 201 189 176 166 159 138 128 128 122 119 111 127 127 126 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 White collars Blue collars
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20 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 ▪ Our targets is to improve availability and improve customer experience even further without increasing inventory levels significantly by continuously improving our purchasing methodology NWC increased due to higher inventory levels 179 107 86 37 127 99 198 210 234 163 0 5 10 15 20 25 0 50 100 150 200 250 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 9.0% Q4 2025 Net working capital, NWC (SEKm) Net working capital, % of Net Revenue, LTM (%) 377 344 332 307 400 419 490 522 490 451 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Inventory
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Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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22 Outlook & Growth Drivers Pierce 2.0 transformation Enhanced fundamentals : customer experience, streamlining operations and improve scalability Has delivered very strong growth (14% LTM) and profitability improvements Completion targeted by first half year 2026 (final two systems live) Negative cost gearing comes to an end during Q2 2026, yielding 30 -40 MSEK EBIT on annualized basis 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 Will take time to scale but will be important contributor to long term growth 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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24 Appendix Appendix
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25 CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2023 2024 2025 Net Revenue 1,537 1,628 1,816 Growth (y/y) (%) -8% 6% 12% Growth in local currencies (y/y) (%) -13% 6% 14% Growth in private brand sales (y/y) (%) -1% 0% 2% Gross Profit 607 724 773 Gross margin (%) 39.5% 44.5% 42.6% Variable sales- and distribution costs -351 -363 -394 Variable sales- and distribution costs (%) -22.8% -22.3% -21.7% Profit after variable costs 256 361 378 Profit after variable costs (%) 16.7% 22.2% 20.8% Overhead costs -267 -270 -281 Overhead costs (%) -17.4% -16.6% -15.5% Adjusted EBITDA -11 91 97 Adjusted EBITDA margin (%) -0.7% 5.6% 5.3% Depreciation, amortisation and impairment -75 -66 -52 D&A (% of net revenue) -4.9% -4.0% -2.8% Adjusted EBIT -85 25 45 Adjusted EBIT margin (%) -5.6% 1.5% 2.5% Items affecting comparability (IAC) -42 -7 -17 IAC (% of net revenue) -2.7% -0.4% -0.9%
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26 QUARTERLY CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Q1 Q2 Q3 Q4 FY25 Net Revenue 345 441 369 382 1,537 356 456 365 451 1,628 401 523 427 464 1,816 Growth (y/y) (%) -18% -2% -1% -10% -8% 3% 3% -1% 18% 6% 13% 15% 17% 3% 12% Growth in local currencies (y/y) (%) -22% -7% -9% -15% -13% 2% 2% 1% 19% 6% 12% 20% 20% 7% 14% Growth in private brand sales (y/y) (%) -15% 5% 7% -1% -1% -2% -2% -7% 9% 0% -1% 4% 15% -6% 2% Gross Profit¹ 137 186 113 171 607 162 201 166 195 724 171 229 171 202 773 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% 43.5% 42.6% Variable sales- and distribution costs -83 -98 -79 -91 -351 -80 -98 -84 -102 -363 -95 -109 -87 -104 -394 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% -22.3% -21.7% Profit after variable costs 54 88 34 80 256 82 104 82 93 361 76 120 84 98 378 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% 21.2% 20.8% Overhead costs -61 -67 -67 -72 -267 -59 -69 -65 -76 -270 -72 -74 -61 -75 -281 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% -16.1% -15.5% Adjusted EBITDA -7 21 -32 8 -11 23 35 17 16 91 4 46 24 24 97 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% 5.1% 5.3% Depreciation, amortisation and impairment -14 -14 -15 -32 -75 -16 -18 -17 -15 -66 -15 -13 -12 -11 -52 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% -2.3% -2.8% Adjusted EBIT -21 6 -47 -7 -69 7 17 0 1 25 -11 32 11 13 45 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% 2.8% 2.5% Items affecting comparability (IAC) 0 -4 -1 -38 -42 0 0 0 -6 -7 -4 -7 -4 -2 -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% -0.5% -0.9% ¹ Revaluation of working capital items 0 0 -1 0 1 -1 -1 2 -3 0 1 3 -1 -1 2 Number of orders (000) 354 429 332 342 1,456 344 416 332 411 1,502 372 477 376 427 1,654 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 1,085 1,098 Net revenue from private brands 145 187 148 160 640 142 185 137 175 639 141 191 157 164 654 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 1,133 1,133 1) Exchange rate revaluation of working capital items are included in cost of goods sold. 2023 2024 2025
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27 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 Q4 Physical stock 283 274 233 280 301 385 422 422 388 Goods in transit 61 58 74 121 118 105 100 68 62 Inventory 344 332 307 400 419 490 522 490 451 Working capital assets 14 25 27 26 24 35 31 23 21 Working capital liabilities -251 -270 -297 -299 -344 -327 -343 -279 -310 Net working capital 107 86 37 127 99 198 210 234 163 As % of net revenue LTM 7.0% 5.6% 2.4% 8.1% 6.1% 11.8% 12.0% 13.0% 9.0% Stock turnover¹ 2.7x 2.8x 3x 2.1x 2.2x 1.9x 1.9x 2.1x 2.3x Inventory % of net revenue LTM 22.4% 21.5% 19.7% 25.7% 25.7% 29.3% 30.0% 27.2% 24.8% 2024 2025
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28 CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS SEKm 2025 2024 2025 2024 Net revenue 464 451 1,816 1,628 Cost of goods sold -262 -256 -1,043 -903 Gross profit 202 195 773 724 Sales and distribution costs -138 -141 -538 -515 Administration costs -53 -60 -208 -196 Other operating income- and expenses 0 1 2 5 Operating profit 10 -5 28 18 Financial net -2 9 -28 24 Profit/loss before tax 8 4 0 42 Tax 0 -5 -1 -6 Profit/loss for the period 8 -1 0 36 Oct-Dec Jan-Dec
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29 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 31 Dec 2025 31 Dec 2024 Intangible assets 268 281 Property, plant and equipment 11 15 Right-of-use assets 119 54 Financial assets 19 6 Deferred tax assets 2 2 Total non-current assets 418 358 Inventory 451 419 Other current assets 22 29 Cash and cash equivalents 235 297 Total current assets 708 745 Total assets 1,126 1,103 Total equity 663 666 Leasing liabilities 87 25 Deferred tax liabilities 23 25 Provisions 1 0 Total non-current liabilities 111 50 Leasing liabilities 30 27 Trade payables 145 111 Other current liabilities 176 248 Total current liabilities 352 386 Total equity and liabilities 1,126 1,103
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30 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW SEKm NOTE 2025 2024 2025 2024 Operating profit A 10 -5 28 18 Adjustments for non-cash items B 14 18 54 69 Paid interest -2 -1 -7 -4 Received interest 1 2 2 8 Realised currency derivatives -2 1 -6 4 Paid/received tax -1 -1 -4 -4 Cash flow from operating activities before changes in net working capital 21 15 68 92 Changes in net working capital C 68 28 -70 13 Cash flow from operating activities 89 43 -3 105 Investing activities Investments in non-current assets D -1 -3 -7 -6 Paid/received blocked funds 0 0 -14 -2 Cash flow from investing activities -1 -2 -21 -8 Financing activities Share issue costs - - 0 0 Issue of warrants including issue costs - - 1 - Change in utilised credit facility - - - - Repayment of liabilities to credit institutions¹ -1 - 0 - Repayment of leasing liabilities E -7 -8 -27 -29 Cash flow from financing activities -8 -8 -26 -29 Cash flow for the period 79 32 -50 68 Cash and cash equivalents at the beginning of period 161 261 297 222 Exchange rate difference -5 3 -12 7 Cash and cash equivalents end of period 235 297 235 297 Operating cash flow before IFRS 16 interest A+B+C+D+E 84 31 -22 66 Interest IFRS 16 -1 0 -6 -2 Operating cash flow 83 30 -28 63 1) Including capitalised interest expenses. Oct-Dec Jan-Dec
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31 RECONCILIATION OF ADJUSTED FINANCIALS SEKm 2025 2024 2025 2024 Net revenue 464 451 1,816 1,628 Cost of goods sold -262 -256 -1,043 -903 Variable sales- and distribution costs -104 -102 -394 -363 Other costs¹ -88 -98 -350 -342 EBIT 10 -5 28 18 Reconciliation of adj. EBIT and adj. EBITDA EBIT 10 -5 28 18 IAC related to: IPO-costs - - - - Restructuring expenses - 0 0 0 Share-based payments -1 0 -2 -1 Share-based payments (social costs) -1 0 -1 0 Goodwill impairment - - - - Other costs (XO) -1 -5 -14 -5 Adjusted EBIT 13 1 45 25 Adjusted EBIT margin (%) 2.8% 0.3% 2.5% 1.5% Depreciation -9 -9 -36 -35 Amortisation -2 -6 -16 -31 Goodwill impairment - - - - (of which PPA amortisations included in adjusted EBIT) -1 -2 -6 -7 Adjusted EBITDA 24 16 97 91 Adjusted EBITDA margin (%) 5.1% 3.6% 5.3% 5.6% 1) Other costs mainly consist of non-variable sales- and distribution costs, administration costs and other operating expenses/income. Jan-DecOct-Dec
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32 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.