Slides
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Interim Report Q2 2026 August 21st 2026
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2 T oday's Presenters Göran Dahlin CEO Fredrik Kjellgren CFO
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3 Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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4 Pierce Group Europe’s #1 Online Destination for Motorcycle Gear & Equipment
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5 Everything you need when you ride a motorcycle, except the motorcycle Comprehensive offering across three outlets >1.1 million customers LTM 295 Employees Poland Central warehouse >200,000 Products in offering Company description ▪ Founded in 2008, Pierce is a leading European e-commerce platform for motorcycle and snowmobile gear, parts and accessories, operating the online stores 24MX, XLMOTO and Sledstore ▪ The company serves passionate riders through locally adapted websites in 29 European countries, as well as dedicated sites for the rest of Europe and global customers ▪ With a broad and differentiated product assortment, including several private brands, Pierce delivers a strong customer experience at attractive price points ▪ The company is actively reshaping the European motorcycle retail market through scale, digital reach and brand-led differentiation ▪ Pierce is headquartered in Stockholm and listed on Nasdaq since 2021, with a central distribution warehouse in Szczecin, Poland, and customer support operations primarily based in Barcelona Store overview, net revenue 2025 % Financial overview SEK 1.8bn Net revenue 26Q2 LTM 3.3% Adj. EBIT 26Q2 LTM Key facts Motocross Motorcycle Snowmobile 60% 35% 5%
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6 31% 69% Office Central warehouse 35% private brand 65% external brands Jackets Boots Helmets Tents Tires Gearbags Body Armour Oils & Fluids 60% Gear & protection 40% Parts & accessories Broad product catalogue with deep European reach Serving riders across Europe through a diversified, category -leading offering Broad product offering Net revenue by geography 2025, (%)
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7 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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8 [TBU | From picture -> slide] Pick & pack within 24 hours >20,000 Orders per day Own long-distance haulers BEST IN CLASS Supply chain and Logistics setup >37,000 m2 Space Stock levels >60,000 SKUs Agile Set up and cross dock
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9 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
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10 Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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11 Q2 SUMMARY Adjusted EBIT edges higher despite challenging WMS transition • In June Pierce implemented a new warehouse management system (WMS). This was a key strategic milestone. The implementation progressed largely as planned but created temporary operational challenges • Adjusted EBIT strengthen from 32 SEKm last year to 34 SEKm Continued growth • Q2 3% growth YoY, 2% in local currency. The growth in the quarter was negatively impacted by the WMS implementation Slight decrease in gross margin and increase in variable costs • Gross margin decreased slightly vs. last year with 0.6 ppt to 43.1% primarily due to commercial activities. • Variable costs increased slightly as a share of net revenue driven by an increase in customer freight as a result of the WMS transition • Together these made our contribution profit land at 118 vs. 120 last year. Decrease in OpEx in-spite of volume growth and transformation cost • Our Overhead costs decreased slightly as a percentage of sales but increased slightly in absolute terms with 1 SEKm vs. last year to 75 SEKm. • Transformation costs due to implementing new SaaS systems are not capitalized – creating a temporary cost overlap. Once this transition is completed, transformation costs will gradually decline, enabling improved operating leverage with 20-30 SEKm annualized. Solid cash position • Cash end of Q2 was solid 319 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 SEK 40m up from SEK 13m last year SEKm Q2 2026 Q2 2025 Q2 2026 LTM Net Revenue 537 523 1,849 Growth, Year over Year % 3% 15% 6% Gross Profit 231 229 778 Gross Margin % 43.1% 43.7% 42.1% Variable Costs -114 -109 -397 Variable costs % -21.1% -20.9% -21.5% Profit after variable costs 118 120 381 Profit after variable costs % 21.9% 22.8% 20.6% Overhead costs -75 -74 -279 Overhead costs % -14.0% -14.1% -15.1% Adjusted EBITDA 43 46 101 Adjusted EBITDA % 8.0% 8.7% 5.5% Depreciation & Amortization -9 -13 -41 Depreciation & Amortization % -1.6% -2.6% -2.2% Adjusted EBIT 34 32 61 Adjusted EBIT % 6.4% 6.2% 3.3% Inventory 505 522 505 Cash 319 188 319 Cash Flow 40 13 134
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12 KPI HIGHLIGHTS LTM Share of private brand sales declined over the year due to strong growth of external brand sales and weaker development than targeted for our private brands 638 635 624 639 638 645 665 654 651 638 41% Q1 2024 41% Q2 2024 40% Q3 2024 39% Q4 2024 38% Q1 2025 37% Q2 2025 37% Q3 2025 36% Q4 2025 35% Q1 2026Q2 2026 35% Net revenues, Private brand LTM (SEKm) Net Revenue, Private brand (% of net revenue) Trustpilot score at high level: 4.4/5.0 Q1 2024Q2 2024Q3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026 4,3 4,3 4,3 4,4 4,4 4,4 4,4 4,4 4,4 Q2 2026 4,4 Aggregated Trustpilot scores
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13 KPI HIGHLIGHTS LTM (CONTINUED) Active customer base steadily increasing AOV quite stable YoY 1,016 1,004 1,001 1,042 1,052 1,089 1,119 1,133 1,157 1,173 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Active customers LTM (000), end of period 1,070 1,090 1,088 1,084 1,093 1,093 1,101 1,098 1,089 1,085 1,447 1,434 1,433 1,502 1,530 1,592 1,637 1,654 1,686 1,704 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 -1% Average order value LTM (SEK) Number of orders LTM (000)
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14 GROSS MARGIN Gross margin development since Q2 2024 • In-freight costs Q2 2026 was at the same level as the previous year and previous quarter. • Market shipping rates from Asia for in -freight have been volatile over the years why we keep a close track of them. • 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. Shipping costs in relation to revenues • Gross margin decreased slightly vs last year primarily due to mix effects. • We aim to grow gross profit by staying price competitive, without being the cheapest in the market, and with consideration of margin levels. Q2 2024 45.5% Q3 2024 43.2% Q4 2024 42.6% Q1 2025 43.7% 40.1% Q2 2025 Q3 2025 43.5% Q4 2025 41.3% Q1 2026 Q2 2026 43.1% 44.1% Gross margin (%), reported 16 17 14 18 14 22 20 21 17 20 19 21 0 2 4 6 8 10 12 0 2 4 6 8 10 12 14 16 18 20 22 Q1 2024 3.9% Q2 2024 3.9% Q3 2024 4.8% Q4 2024 4.4% Q1 2025 4.0% Q3 2023 Q2 2025 4.0%4.4% Q3 2025 4.3% Q4 2023 Q4 2025 4.5% 3.9% Q1 2026 Q2 2026 4.0% 4.9% In-freight (SEKm) Cost in relation to Net revenue (%)
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15 ADJUSTED EBIT Adjusted EBIT Impact – Q2 202 6 • Two items, not included in “Items Affecting Comparability,” impacted Adj. EBIT in Q2 202 6. These are illustrated in the graph for comparability: o Amortisation of trademarks , SEK -1 m o Estimated transformation costs , SEK -6 m • Excluding these items, Adj. EBIT would have been approx. SEK 41m for Q 2 202 6. 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 . Adjusted EBIT margin (%) Adjusted EBIT vs last year, excluding unusual items Adjusted EBIT (SEKm) 34 41 6 Q2 2026 1 Amortisation of trademarks Transformation costs Q2 2026 excl. other unusual items 6.4% 7.7%
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16 OVERHEAD COSTS DEVELOPMENT ▪ OpEx decreased slightly Y oY ▪ 2026 Q2 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. ▪ Since the start of our transformation, we have right-sized the company by reducing our white-collar workforce by 40%, from 256 in Q2 2023 to 157 in Q2 2026, while growing net revenue by 17% ▪ Sales per white-collar FTE has thus increased by approx. 90%. ▪ This has been achieved by simplifying processes, reducing bureaucracy, and empowering our teams. 69 65 76 72 74 61 75 69 75 0 5 10 15 20 25 0 10 20 30 40 50 60 70 80 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 16.4% Q1 2026 Q2 2026 14.0% Overhead costs Overhead costs % of net revenue 202 202 201 189 176 166 159 156 157 128 122 119 111 127 127 126 124 138 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 White collars Blue collars
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17 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 improved while inventory levels remained fairly stable 86 37 127 99 198 210 234 163 149 140 0 5 10 15 20 25 0 50 100 150 200 250 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 8.1% Q1 2026 Q2 2026 7.6% Net working capital, NWC (SEKm) Net working capital, % of Net Revenue, LTM (%) 332 307 400 419 490 522 490 451 485 505 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Inventory
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18 Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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19 PIERCE 2.0 –Transformation Actions • Since its start in 2008, Pierce was fast growing and profitable, but post-COVID it faced declining demand, margin pressure, and losses (SEK -69m EBIT in 2023) • New management in Q2 2023 • Launched Pierce 2.0 in Q3 2023 with two priorities: get back to profitability and get back to growth • Simplified the structure by introducing a new operating model with specialist teams, clear accountability, and strong customer focus, improving speed and execution • Simplified private label portfolio to focus investments and improve performance – reduced from 7 to 3 core brands by migrating products into core brands • Cleaned up inventory – SEK 44m write-down of obsolete and slow-moving stock • Modernizing the tech platform – replacing four core systems (incl. WMS and e- commerce) to enable scalability, improve functionality, and increase stability and security Results • Adjusted EBIT SEK 25m (2024) → SEK 45m (2025) → SEK 61m LTM • SEK 61m LTM achieved despite SEK 24m temporary transformation costs related to the new tech stack, which will reduce in the short term • 17% sales growth since program start and 40% reduction in white-collar headcount => +90% sales per employee • Also improved underlying quality: larger customer base, improved customer satisfaction retention, and significantly higher employee net promoter score Future • Now entering the next phase – with a stronger platform and cost base, ready to scale • Expanding into new markets and verticals • Actively looking at consolidation opportunities -69 10 29 24 25 45 61 2023 2024 2025 26Q2 LTM -69 MSEK 35 MSEK 74 MSEK 85 MSEK Adj EBIT Transformation costs* Adj. EBIT without transformation costs * NB: Transformation costs will not reach zero, given the continuous evolution of our IT landscape. That said, the changes made in Pierce 2.0 are foundational, and costs are expected to decrease materially once the remaining systems are fully deployed.
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20 Remaining activities in Pierce 2.0: E-com roll-out Launched beta version of localized pilot markets Migration of BE+ES as pilot for established markets Launch of rest of localized markets Black Friday sales period Migration of rest small established markets Launch of larger markets Q4 2025 Q2 2025 Aug-Sep Dec 26 – Jan 27 We need to protect strong sales period in Nov Nov
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21 Outlook & Growth Drivers Pierce 2.0 transformation Full completion targeted latest by Q1 2027 (after full roll out of our new e -com stack) Negative cost gearing comes to an end during Q2 2026, yielding 20 -30 MSEK EBIT on annualized basis. Gradual decrease of negative cost gearing expected from Q3 Focus on expanding reach across markets and verticals to sustain growth momentum Localisation of 13 markets from our pan -European site to drive long -term growth Gain momentum in mountain bike 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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22 Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
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23 Appendix Appendix
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24 CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2024 2025 Q2 2026 LTM Net Revenue 1,628 1,816 1,849 Growth (y/y) (%) 6% 12% 6% Growth in local currencies (y/y) (%) 6% 14% 9% Growth in private brand sales (y/y) (%) 0% 2% -1% Gross Profit 724 773 778 Gross margin (%) 44.5% 42.6% 42.1% Variable sales- and distribution costs -363 -394 -397 Variable sales- and distribution costs (%) -22.3% -21.7% -21.5% Profit after variable costs 361 378 381 Profit after variable costs (%) 22.2% 20.8% 20.6% Overhead costs -270 -281 -279 Overhead costs (%) -16.6% -15.5% -15.1% Adjusted EBITDA 91 97 101 Adjusted EBITDA margin (%) 5.6% 5.3% 5.5% Depreciation, amortisation and impairment -66 -52 -41 D&A (% of net revenue) -4.0% -2.8% -2.2% Adjusted EBIT 25 45 61 Adjusted EBIT margin (%) 1.5% 2.5% 3.3% Items affecting comparability (IAC) -7 -17 -15 IAC (% of net revenue) -0.4% -0.9% -0.8%
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25 QUARTERLY CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY24 Q1 Q2 Q3 Q4 FY25 Q1 Q2 Q2 LTM Net Revenue 356 456 365 451 1,628 401 523 427 464 1,816 421 537 1,849 Growth (y/y) (%) 3% 3% -1% 18% 6% 13% 15% 17% 3% 12% 5% 3% 6% Growth in local currencies (y/y) (%) 2% 2% 1% 19% 6% 12% 20% 20% 7% 14% 10% 2% 9% Growth in private brand sales (y/y) (%) -2% -2% -7% 9% 0% -1% 4% 15% -6% 2% -2% -5% -1% Gross Profit¹ 162 201 166 195 724 171 229 171 202 773 174 231 778 Gross margin (%) 45.6% 44.1% 45.5% 43.2% 44.5% 42.6% 43.7% 40.1% 43.5% 42.6% 41.3% 43.1% 42.1% Variable sales- and distribution costs -80 -98 -84 -102 -363 -95 -109 -87 -104 -394 -93 -114 -397 Variable sales- and distribution costs (%) -22.5% -21.4% -23.0% -22.5% -22.3% -23.6% -20.9% -20.3% -22.3% -21.7% -22.2% -21.1% -21.5% Profit after variable costs 82 104 82 93 361 76 120 84 98 378 80 118 381 Profit after variable costs (%) 23.1% 22.7% 22.5% 20.6% 22.2% 19.0% 22.8% 19.7% 21.2% 20.8% 19.1% 21.9% 20.6% Overhead costs -59 -69 -65 -76 -270 -72 -74 -61 -75 -281 -69 -75 -279 Overhead costs (%) -16.6% -15.1% -18.0% -17.0% -16.6% -17.9% -14.1% -14.2% -16.1% -15.5% -16.4% -14.0% -15.1% Adjusted EBITDA 23 35 17 16 91 4 46 24 24 97 11 43 101 Adjusted EBITDA margin (%) 6.5% 7.6% 4.6% 3.6% 5.6% 1.1% 8.7% 5.5% 5.1% 5.3% 2.7% 8.0% 5.5% Depreciation, amortisation and impairment -16 -18 -17 -15 -66 -15 -13 -12 -11 -52 -9 -9 -41 D&A (% of net revenue) -4.4% -3.9% -4.6% -3.4% -4.0% -3.8% -2.6% -2.9% -2.3% -2.8% -2.2% -1.6% -2.2% Adjusted EBIT 7 17 0 1 25 -11 32 11 13 45 2 34 61 Adjusted EBIT margin (%) 2.0% 3.7% -0.0% 0.3% 1.5% -2.7% 6.2% 2.7% 2.8% 2.5% 0.5% 6.4% 3.3% Items affecting comparability (IAC) 0 -0 -0 -6 -7 -4 -7 -4 -2 -17 -6 -2 -15 IAC (% of net revenue) -0.0% -0.0% -0.0% 1.4% -0.4% -0.9% -1.3% -1.0% -0.5% -0.9% -1.5% -0.3% -0.8% ¹ Revaluation of working capital items -1 -1 2 -3 0 1 3 -1 -1 -1 0 -1 -3 Number of orders (000) 344 416 332 411 1,502 372 477 376 427 1,654 404 496 1,704 Average order value (AOV) (SEK) 1,034 1,097 1,100 1,098 1,084 1,078 1,096 1,134 1,085 1,098 1,040 1,082 1,085 Net revenue from private brands 142 185 137 175 639 141 191 157 164 654 138 181 638 Active customers, LTM (000) 1,016 1,004 1,001 1,042 1,042 1,052 1,089 1,119 1,133 1,133 1,157 1,173 1,173 2024 2025 2026
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26 QUARTERLY CONSOLIDATED NET WORKING CAPITAL 2024 SEKm (unless stated otherwise) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Physical stock 301 385 422 422 388 398 378 Goods in transit 118 105 100 68 62 86 127 Inventory 419 490 522 490 451 485 505 Working capital assets 24 35 31 23 21 27 33 Working capital liabilities -344 -327 -343 -279 -310 -362 -398 Net working capital 99 198 210 234 163 149 140 As % of net revenue LTM 6.1% 11.8% 12.0% 13.0% 9.0% 8.1% 7.6% Stock turnover¹ 2.2x 1.9x 1.9x 2.1x 2.3x 2.2 2.1 Inventory % of net revenue LTM 25.7% 29.3% 30.0% 27.2% 24.8% 26.4% 27.3% 1 ) Defined as cost of goods sold LTM divided by end of quarter inventory. 2025 2026
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27 CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS Jul 2025- Jan-Dec SEKm 2026 2025 2026 2025 Jun 2026 2025 Net revenue 537 523 958 925 1,849 1,816 Cost of goods sold -306 -295 -553 -525 -1,071 -1,043 Gross profit 231 229 405 400 778 773 Sales and distribution costs -148 -148 -273 -280 -531 -538 Administration costs -52 -58 -106 -110 -204 -208 Other operating income- and expenses 1 2 2 1 3 2 Operating profit 32 26 28 11 46 28 Financial net 4 -3 2 -21 -5 -28 Profit/loss before tax 36 23 31 -10 41 0 Tax -1 0 -2 -1 -2 -1 Profit/loss for the period 35 23 29 -11 39 -0 Apr-Jun Jan-Jun
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28 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 30-Jun-26 30-Jun-25 31-Dec-25 Intangible assets 266 273 268 Property, plant and equipment 11 12 11 Right-of-use assets 94 139 119 Financial assets 5 19 19 Deferred tax assets 2 2 2 Total non-current assets 379 444 418 Inventory 505 522 451 Other current assets 33 33 22 Cash and cash equivalents 319 188 235 Total current assets 858 742 708 Total assets 1,237 1,186 1,126 Total equity 700 658 663 Leasing liabilities 67 104 87 Deferred tax liabilities 23 24 23 Provisions 1 0 1 Total non-current liabilities 91 128 111 Leasing liabilities 27 32 30 Liabilities to credit institutions 4 0 0 Trade payables 118 113 145 Other current liabilities 298 255 176 Total current liabilities 447 400 352 Total equity and liabilities 1,237 1,186 1,126
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29 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Jul 2025- Jan-Dec SEKm NOTE 2026 2025 2026 2025 Jun 2026 2025 Operating profit A 32 26 28 11 46 28 Adjustments for non-cash items B -7 13 2 35 21 54 Paid interest -1 -2 -4 -4 -7 -7 Received interest 2 1 3 1 3 2 Realised currency derivatives 0 -2 -2 -2 -6 -6 Paid/received tax -1 -1 -2 -2 -3 -4 Cash flow from operating activities before changes in net working capital 25 34 25 39 54 68 Changes in net working capital C 21 0 49 -115 93 -70 Cash flow from operating activities 46 34 74 -75 147 -3 Investing activities Investments in non-current assets D -2 -1 -3 -4 -6 -7 Paid/received blocked funds 0 -14 13 -14 13 -14 Cash flow from investing activities -2 -15 10 -18 8 -21 Financing activities Share issue costs 0 0 0 0 0 0 Issue of warrants including issue costs - - 0 - 1 1 Change in utilised credit facility - - - - - - Repayment of liabilities to credit institutions¹ 2 - 3 - 4 0 Repayment of leasing liabilities E -6 -7 -12 -14 -26 -27 Cash flow from financing activities -4 -7 -9 -14 -21 -26 Cash flow for the period 40 13 76 -108 134 -50 Cash and cash equivalents at the beginning of period 273 175 235 297 319 297 Exchange rate difference 7 0 8 -2 -2 -12 Cash and cash equivalents end of period 319 188 319 188 319 235 Operating cash flow before IFRS 16 interest A+B+C+D+E 38 31 64 -87 129 -22 Interest IFRS 16 -1 -2 -2 -3 -5 -6 Operating cash flow 37 29 62 -90 123 -28 Apr-Jun Jan-Jun
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30 RECONCILIATION OF ADJUSTED FINANCIALS Jul 2025- Jan-Dec SEKm 2026 2025 2026 2025 Jun 2026 2025 Net revenue 537 523 958 925 1,849 1,816 Cost of goods sold -306 -295 -553 -525 -1,071 -1,043 Variable sales- and distribution costs -114 -109 -207 -204 -397 -394 Other costs¹ -86 -94 -170 -185 -335 -350 EBIT 32 26 28 11 46 28 Reconciliation of adj. EBIT and adj. EBITDA EBIT 32 26 28 11 46 28 IAC related to: IPO-costs - - - - - - Restructuring expenses - 0 0 0 0 0 Share-based payments 0 0 -1 -1 -3 -2 Share-based payments (social costs) 0 0 -1 0 -2 -1 Goodwill impairment - - - - - - Other costs (XO) -1 -6 -6 -9 -11 -14 Adjusted EBIT 34 32 36 21 61 45 Adjusted EBIT margin (%) 6.4% 6.2% 3.8% 2.3% 3.3% 2.5% Depreciation -8 -9 -15 -18 -33 -36 Amortisation -1 -4 -3 -11 -8 -16 Goodwill impairment - - - - - - (of which PPA amortisations included in adjusted EBIT) -1 -2 -2 -3 -5 -6 Adjusted EBITDA 43 46 54 50 101 97 Adjusted EBITDA margin (%) 8.0% 8.7% 5.7% 5.4% 5.5% 5.3% Jan-JunApr-Jun 1 ) Other costs mainly consist of non-variable sales- and distribution costs, administration costs and other operating expenses/income.
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31 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.