===== SIDA 1 ===== CLAS OHLSON NINE - MONTH REPORT 2022/23 1 *The 2022/23 financial year comprises the period from 1 May 2022 to 30 April 2023. Contact person: Niklas Carlsson, Group Head of Communications +46 247 444 29, niklas.carlsson@clasohlson.se This is information that Clas Ohlson AB (publ) is obliged to publish pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person indicated, on 8 March 2023 at 7:00 a.m. (CET). This nine-month Report is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern. Nov 2022 Nov 2021 Percentage May 2022 May 2021 Percentage Feb 2022 May 2021 - Jan 2023 - Jan 2022 change - Jan 2023 - Jan 2022 change - Jan 2023 - Apr 2022 Sales, MSEK 2,954 2,831 4 7,248 7,004 3 9,028 8,784 Operating profit, MSEK 215 378 -43 312 729 -57 302 719 Profit after tax, MSEK 158 287 -45 204 538 -62 188 523 Gross margin, % 38.2 41.5 -3.3 p.p 37.2 41.4 -4.2 p.p 37.7 41.0 Operating margin, % 7.3 13.3 -6.1 p.p 4.3 10.4 -6.1 p.p 3.3 8.2 Return on capital employed, % – – – – – – 8.2 17.4 Return on equity, % – – – – – – 9.9 23.3 Cashflow from operating activities, MSEK 1,148 634 81 947 1,301 -27 629 986 Equity/assets ratio, % 29.2 36.1 -6.9 p.p 29.2 36.1 -6.9 p.p 29.2 37.3 Net debt/EBITDA ratio – – – – – – 1.5 0.9 Net debt/EBITDA excl. IFRS 16 ratio – – – – – – -0.1 -0.5 Earnings per share before dilution, SEK 2.50 4.53 -45 3.21 8.49 -62 2.97 8.25 3 Months 9 Months 12 Months Third quarter – 1 November to 31 January • Sales increased by 4% to 2,954 MSEK (2,831), with organic sales up 2% • Online sales increased by 4% to 343 MSEK (329) • Operating profit totalled 215 MSEK (378). Excluding previously announced non-recurring costs, operating profit amounted to 334 MSEK (378) • The operating margin was 7.3% (13.3) • Net debt/EBITDA (12 months) excluding the effect of IFRS 16 amounted to -0.1 times (-1.1) • Profit after tax totalled 158 MSEK (287) • Earnings per share amounted to 2.50 SEK (4.53) • The resolved dividend paid amounted to 412 MSEK (the second of two separate payments) Nine months – 1 May to 31 January • Sales increased by 3% to 7,248 MSEK (7,004), with organic sales up 1% • Online sales increased by 11% to 834 MSEK (750) • Operating profit totalled 312 MSEK (729). Excluding previously announced non- recurring costs and costs for the closure of operations in the UK, operating profit totalled 466 MSEK (704 MSEK excluding a non- recurring payment from Fora). • The operating margin was 4.3% (10.4) • Profit after tax totalled 204 MSEK (538) • Earnings per share amounted to 3.21 SEK (8.49) Events after the end of the reporting period • Sales in February increased by 1% to 541 MSEK (534), up 2% organically • Online sales in February decreased by 5% to 60 MSEK (63) ORGANIC GROWTH QUARTER OPERATING PROFIT QUARTER Nine-month report 2022/23 215 MSEK +2% ===== SIDA 2 ===== CEO’S COMMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 2 Continued growth and rapid pace of transformation The third quarter of the 2022/23 financial year confirmed the relevance of important parts of our business. Clas Ohlson’s position as a popular Christmas destination was confirmed with a favourable sales trend in November and December, in an otherwise weak retail market. In January, when customers wanted to start the new year with organized homes, we had the right assortment on the shelf. In total, sales increased by 4 per cent during the quarter, and organic sales growth was 2 per cent. Favourable position in the prevailing market situation Simplifying home fixing for customers remains a beneficial position as more people are choosing to take care of and repair things they already own. Demand for products and energy saving know-how, as well as products that reduce food waste and lower food costs, remains high. In addition to driving sales, this is entirely in line with our sustainability agenda and ambition to help customers save money and live more sustainable lives. Customers are also becoming increasingly positive about the Clas Ohlson experience. The already high customer satisfaction level increased further during the quarter to an NPS of 57, product reviews remained high at 4.4 on a scale of 1 to 5, and our leading price position has further improved in relation to the low-price players in the industry. Growth strategy focusing on the customer The Club Clas loyalty programme reached a new milestone having now surpassed five million members. Nine out of ten of these members are active and the most loyal of these currently account for the largest portion of our profitability and growth. The strong membership inflow in Finland is particularly gratifying, with the number of active members increasing by over 50 per cent in the past year as part of our growth plan. In addition, customer traffic and sales trends have been good in many stores, but continued to vary depending on location. Despite having five stores less year-on-year, we still managed to increase total sales during the quarter. We see this as evidence that it is wise to continue to optimise the store network to ensure that Clas Ohlson is present where the customer is, with conditions for each store to contribute to our profitability targets. Even if online growth in the quarter did not reach the desired level, it faired relatively well compared with an otherwise weak online market. Online shopping will remain an important growth driver for Clas Ohlson’s total sales in the years ahead. More simple operations driving sustainable and profitable growth We have continued to place considerable focus on profitability and the previously announced cost saving measures have been implemented according to plan. Non- recurring costs of 119 MSEK related to personnel reductions at our offices and the disposal of IT systems are thus included in operating profit, which amounted to 215 MSEK (378) in the third quarter. The operating margin was 7.3 per cent (13.3). As previously, high purchasing and transport costs and a weak SEK have negatively impacted the gross margin. Lately, global transport prices have rapidly fallen, but the uncertain economic environment and cost inflation mean that we will continue to have a strong focus on streamlining our processes and reducing costs. One example is how we, with a more cost efficient organization, expanded purchasing activities to more manufacturing markets. This work will give us even better opportunities to offer the right quality and price to our customers going forward. There is also further potential for more efficient inventory management moving forward given that the major disruptions to the global logistics chains during the pandemic has been put to end. This has allowed us to return to more normal lead times for placing orders and deliveries. THE CLUB CLAS LOYALTY PROGRAMME REACHED A NEW MILESTONE HAVING NOW SURPASSED FIVE MILLION MEMBERS ===== SIDA 3 ===== CEO’S COMMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 3 Focus on the things we can control In conclusion, I would like to highlight all good efforts from our employees who, faced with a challenging retail market, have managed to maintain their focus on the things that we can control ourselves. By consistently working with the foundations of our operations such as the customer meeting, product range, availability and value for money, we are creating customer and shareholder value for both today and tomorrow. Another important area that we can impact is the sustainability work, where we recently raised our ambitions further. Our long-term target to be climate neutral across the entire value chain by 2045 remains, but we now also have set the target of being climate neutral in our own operations in only three years, by 2026. We are now looking forward to a spring in which we will continue to strengthen our customer offering in the most important destination categories, such as lighting, tools and equipment for home fixing, both indoors and outdoors. Welcome to Clas Ohlson this spring! Kristofer Tonström President and CEO of Clas Ohlson AB Strategic focus areas • Customer offering: Own key product categories • Availability and convenience in our sales channels • Club Clas: Core customer focus • Growth in Finland Financial targets/framework • Sales will increase organically 5 per cent annually • The reported operating margin (including IFRS 16) will amount to between 7 and 9 per cent annually • The dividend is to comprise at least 50 per cent of earnings per share after tax, considering the company’s financial position • Net debt in relation to EBITDA to fall below two (2) times Investments are being planned as regards financial position, cash flow and strategic activities Focus areas Sustainability • The Planet: Climate neutral and fully circular by 2045, climate neutral in own operations by 2026 • People: A sustainable and long-term employer with happy co-workers • Society: Contributing to a fair and prosperous society for future generations Q3 presentation, 8 March 9:00 a.m. Financial calendar Contents The report will be presented at 9:00 a.m. via a webcast teleconference. For more information, visit https://about.clasohlson.com Financial information Current financial information is available at about.clasohlson.com/en/investors 8 June 2023 Year-end Report 2022/23 Financial statements 10 6 September Three-month Report 2023/24 Key ratios 15 8 September Annual General Meeting Quarterly overview 16 6 December 2023 Six-month Report 2023/24 Accounting policies 18 Alternative performance 19 Key ratio definitions 22 Glossary 24 Store overview 25 The share 26 Clas Ohlson in brief 27 ===== SIDA 4 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 4 Sales Third quarter Sales increased 4 per cent to 2,954 MSEK (2,831). Organic sales increased 2 per cent compared with the preceding year. Online sales increased by 4 per cent to 343 MSEK (329). At the end of the quarter, the total number of stores was 224, which was a decrease of a net five stores compared with the year-earlier period (a net increase of two stores in the previous year). For a store overview see page 25. Nine months Sales increased 3 per cent to 7,248 MSEK (7,004). Organic sales increased by 1 per cent compared with the preceding year. Online sales increased 11 per cent to 834 MSEK (750). The store network was reduced by a net of five stores during the nine-month period (an increase of one in the previous year). Nov 2022 Nov 2021 May 2022 May 2021 MSEK - Jan 2023 - Jan 2022 SEK organic - Jan 2023 - Jan 2022 SEK organic Sweden 1,300 1,267 3 3 3,241 3,168 2 2 Norway 1,318 1,234 7 3 3,160 3,014 5 0 Finland 336 313 7 -0 834 778 7 1 Outside the Nordics -0 17 – – 13 43 – – Total 2,954 2,831 4 2 7,248 7,004 3 1 Of which online sales 343 329 4 2 834 750 11 9 3 Months 9 Months Distribution of sales Percentage change Percentage change Distribution of sales increase 3 Months 9 Months Nov 2022 May 2022 Per cent - Jan 2023 - Jan 2023 Organic growth 2 1 Exchange-rate effects 2 2 Total 4 3 Q3 Q4 Q1 Q2 Q3 % 21/22 21/22 22/23 22/23 22/23 Sweden 0.3 -7.8 -16.0 -24.4 -24.2 Norway -5.1 -13.8 -20.9 -29.4 -27.5 Finland -1.3 -7.3 -13.9 -16.9 -16.0 *Source: Opinion AS Consumer Confidence development* Distribution per sales channel, % Distribution of sales R12, % Distribution of numbers of stores Sales, MSEK Distribution of sales, % 88 12 Q3 St ores Onl ine 88 12 R12 St ores Onl ine 0 20 40 60 80 100 Swede n Norway Fi nl an d 0 500 1000 1500 2000 2500 3000 3500 Q1 Q2 Q3 Q4 2021/22 2022/23 44 45 11 Q3 Sweden Norway Finland ===== SIDA 5 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 5 Results Third quarter The gross margin fell by 3.3 percentage points to 38.2 per cent (41.5). The gross margin was negatively impacted by macro-related factors such as increased sourcing costs and an overall negative currency effect during the quarter. This was partially offset by operational factors such as the product mix and increased retail prices. The share of selling expenses declined by 0.5 percentage points to 25.7 per cent (26.3). The share declined mainly as a result of higher sales. Administrative expenses amounted to -51 MSEK (-51). There was a continued major focus on costs. Operating profit totalled 215 MSEK (378). Excluding previously announced non-recurring costs of 119 MSEK, operating profit amounted to 334 MSEK (378). The operating margin was 7.3 per cent (13.3). Profit after financial items totalled 200 MSEK (362). Depreciation for the quarter amounted to 194 MSEK (191). Spot exchange rates for key currencies averaged 1.05 for NOK and 10.47 for USD, compared with 1.02 and 9.01, respectively, in the year-earlier period. Currency hedging was undertaken in USD and NOK. Currency hedging that fell due during the quarter had a negative impact of 5 MSEK (NOK) on earnings and a positive impact on inventory value through a decrease of 11 MSEK (USD). The company’s policy is to hedge 50 per cent of the expected flow in each currency continuously, with three- to nine-month maturities. Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Sales 2,954 2,831 7,248 7,004 9,028 8,784 Cost of goods sold -1,826 -1,657 -4,553 -4,106 -5,626 -5,179 Gross profit 1,128 1,174 2,695 2,898 3,402 3,605 Selling expenses -760 -744 -2,090 -2,037 -2,757 -2,704 Administrative expenses -51 -51 -145 -152 -193 -200 Other operating income*/expenses** -102 -1 -148 21 -150 19 Operating profit*** 215 378 312 729 302 719 Extracts from Consolidated Income Statement *Non-recurring payment of consolidation fund from FORA during Q2 last year amounted to 24.9 MSEK **Total cost for discontinuation of operations in the UK was -35.0 MSEK during the first quarter ***One-off cost related to disposal of IT system was -99.9 MSEK recognised in Other operating expenses during the third quarter (remaining costs allocated: Cost of goods sold -6.1 MSEK, Selling expenses -4.9 MSEK, Administrative expenses -5.5 MSEK, Other operating expenses -2.4 MSEK) 3 Months 9 Months 12 Months Specification of change in profits 3 Months 9 Months Nov 2022 May 2022 MSEK - Jan 2023 - Jan 2023 Operating profit corresponding period previous year 377.9 729.2 Profit from sales 36.5 55.7 Change in gross margin -96.4 -303.8 Change in administrative expenses 0.2 5.8 Change in expansion costs stores 0.4 -1.0 Change in depreciation, excl IFRS 16 -0.7 -5.1 Change in other operating income/expenses -100.9 -168.7 Accounting policy effect, IFRS 16 -1.8 -0.7 Operating profit actual period 215.2 311.5 Gross margin rolling 12 months, % Share of selling expenses, % Operating profit, MSEK Operating margin rolling 12 months, % 35.0 36.0 37.0 38.0 39.0 40.0 41.0 42.0 43.0 Q 3 20 21/2 2 Q 4 Q 1 20 22/2 3 Q 2 Q 3 0. 0 10.0 20.0 30.0 40.0 Q1 Q2 Q3 Q4 2021/22 2022/23 -150 -50 50 150 250 350 450 Q1 Q2 Q3 Q4 2021/22 2022/23 0. 0 2. 0 4. 0 6. 0 8. 0 10.0 12.0 14.0 Q 3 20 21/2 2 Q 4 Q 1 20 22/2 3 Q 2 Q 3 ===== SIDA 6 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 6 Nine months The gross margin fell by 4.2 percentage points to 37.2 per cent (41.4). The main reason is a result of macro-related factors such as increased sourcing costs and an overall negative currency effect during the period. The share of selling expenses declined by 0.3 percentage points to 28.8 per cent (29.1). The share declined mainly as a result of higher sales. Administrative expenses declined compared with the preceding year and amounted to - 145 MSEK (-152). There was a continued major focus on costs. Operating profit totalled 312 MSEK (729). Excluding previously announced non-recurring costs of 119 MSEK and costs for the closure of operations in the UK, operating profit totalled 466 MSEK. The cost of the closure of the remaining operations in the UK, which was charged to the first quarter, amounted to approximately 35 MSEK. In the previous year, the company received 25 MSEK as a non-recurring payment from Fora relating to the surplus within the collectively agreed AGS health insurance. The operating margin was 4.3 per cent (10.4). Profit after financial items totalled 265 MSEK (681). Depreciation for the period amounted to 589 MSEK (565). Spot exchange rates for key currencies averaged 1.05 for NOK and 10.46 for USD, compared with 1.00 and 8.71, respectively, in the year-earlier period. Currency hedging was undertaken in USD and NOK. Currency hedging that fell due during the period had a negative impact of 14 MSEK (NOK) on earnings and a positive impact on inventory value through a decrease of 63 MSEK (USD). The company’s policy is to hedge 50 per cent of the expected flow in each currency continuously, with three- to nine-month maturities. Investment s Investments during the nine-month period amounted to 101 MSEK (116). Of this amount, investments in new or refurbished stores accounted for 34 MSEK (41). Investments in IT systems for the period amounted to 36 MSEK (37). The shares in Mathem were measured at fair value amounting to 59 MSEK, unchanged during the quarter and a decrease of 99 MSEK during the nine-month period. During the quarter, measures were taken to streamline the company’s IT systems to better reflect the company’s strategy and simplified work processes. This has resulted in disposals and impairment of 100 MSEK. ===== SIDA 7 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 7 Financing and liquidity Cash flow from operating activities during the nine-month period totalled 947 MSEK (1,301). Cash flow for the period, after investing and financing activities, was - 377 MSEK (412). The resolved dividend was paid out in two separate payments of 6.50 SEK per share each (September and January). Payments made during the nine-month period amounted to 824 MSEK. The average 12-month value of inventories was 2,394 MSEK (1,875). Over a rolling 12- month period, the stock turnover rate at the distribution centre was 4.5 times (5.7). At the end of the quarter, the inventory value was 2,125 MSEK (1,950). During the current financial year, the inventory value was impacted by external factors, such as increased costs for the purchase of products related to such factors as a weaker SEK in relation to the purchasing currency (USD) and higher costs for incoming transports. Compared with the end of second quarter, inventory value has reduced considerably as a consequence of efficient inventory control and increased sales. The Group’s net debt at the end of the period, meaning interest-bearing liabilities less cash and cash equivalents, amounted to 1,626 MSEK (975). Excluding the effect of IFRS 16, net debt in relation to EBITDA was -0.1 times (-1.1), which is in accordance with the company’s financial framework. Credits granted and loan commitments amounted to 800 MSEK, of which 12 MSEK had been utilised at the end of the period. The company’s financial position remains strong. The equity/assets ratio was 29 per cent (36). Employees The number of employees in the Group was approximately 4,900. Recalculated to (rolling 12-month average) full-time equivalents (FTEs), this corresponds to an average of 3,152 (3,099). Sustainability During the quarter, the proportion of suppliers audited to be free of critical deviations was 99.0 per cent (99.4% Q2 22/23). The number of environmental assessments carried out increased somewhat in the third quarter compared with the previous quarter to 169 (165 Q2 22/23), corresponding to 85 per cent of our purchasing volume. Work on product assessments according to the Product Sustainability Assessment Model (PSAM) continued. At the end of the quarter, over 50 per cent of the sales volume of our own brands was assessed according to PSAM. Work is continually being carried out to make the assortment more sustainable, for example, by changing to more local suppliers, increased use of recycled plastic and a broader offering of spare parts in more stores. During the quarter, it was confirmed that Clas Ohlson received the score “B” in CDP’s annual Climate Change global ranking for the seventh year in a row. Clas Ohlson has a long-term target of being climate neutral across the entire value chain by 2045 and the company has now supplemented this target with a target of becoming climate neutral in own operations by 2026. Cash flow, MSEK* *From operating activities Suppliers free from critical findings, % Environmental assessments, completed Share of products in relation to sales volume (own brand) assessed according to PSAM, % -500 0 500 1000 1500 Q1 Q2 Q3 Q4 2021/22 2022/23 0. 0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100. 0 Q 4 20 21/2 2 Q 1 20 22/2 3 Q 2 Q 3 0 20 40 60 80 100 120 140 160 180 Q 4 20 21/2 2 Q 1 20 22/2 3 Q 2 Q 3 20.0 25.0 30.0 35.0 40.0 45.0 50.0 Q 4 20 21/2 2 Q 1 20 22/2 3 Q 2 Q 3 ===== SIDA 8 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 8 Seasonal fluctuations Clas Ohlson’s market and operations are influenced by consumer purchasing behaviour. The company’s product range is particularly well suited to Christmas preparations and Christmas shopping, which means that the third quarter (November-January) is generally the strongest quarter of the financial year. This is followed by the second and first quarters and, finally, the fourth quarter, which is the weakest in terms of sales and profit. Parent Company Parent Company sales in the nine-month period amounted to 5,944 MSEK (5,460) and profit after financial items amounted to 120 MSEK (217). Investments for the period amounted to 70 MSEK (74). Contingent liabilities for the Parent Company amounted to 172 MSEK (192). Cost savings Clas Ohlson has intensified efforts to simplify and streamline the organisation. Within the context of this, the company is reducing the workforce by approximately 85 full-time employees. Measures are also being taken to rationalise the IT system and reduce office space. All of the changes are being made to better reflect the company’s strategy and simplified work processes. The actions are expected to deliver cost savings and reduced depreciation totalling approximately 110 MSEK with full effect in the 2023/24 financial year. The actions also entail non-recurring costs of approximately 119 MSEK recognised in the third quarter of 2022/23. These comprise 100 MSEK of disposals of IT systems and the remaining 19 MSEK is primarily costs for headcount reductions. The above costs have had a minor impact on cash flow. Events after the end of the reporting period Sales in February Sales in February increased by 1 per cent to 541 MSEK (534). Organic sales increased by 2 per cent compared with the preceding year. Online sales decreased by 5 per cent to 60 MSEK (63). Compared with the same month of the preceding year, the store portfolio was reduced by a net of five stores (unchanged in the preceding year). The total number of stores at the end of the period was 224 (229). For a store overview see page 25. Total sales in the first ten months of the financial year (May-February) increased by 3 per cent to 7,789 MSEK (7,537). Organic sales increased by 1 per cent compared with the preceding year. Online sales increased by 10 per cent to 894 MSEK (813). Distribution of sales MSEK Feb 2023 Feb 2022 SEK organic May-Feb 2023 May-Feb 2022 SEK organic Sweden 250 244 3 3 3,492 3,412 2 2 Norway 229 227 1 3 3,389 3,241 5 1 Finland 62 59 5 -1 896 837 7 1 Outside the Nordics 0 4 – – 13 47 – – Total 541 534 1 2 7,789 7,537 3 1 Of which online sales 60 63 -5 -5 894 813 10 8 Percentage change Month Accumulated Percentage change ===== SIDA 9 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 9 Risks and uncertainties To develop an attractive and relevant customer offering and to ensure our competitiveness, we must understand how our business environment is changing. The operations that Clas Ohlson conduct entail risks that could negatively impact the Group to varying extents. These risks are divided into strategic, operational and financial risks. When managed correctly, risks may lead to opportunities and add value to the business. We work continuously to update the Group’s risk situation through a systematic process in which risks are identified, evaluated, managed and reported. Priority is assigned to the risks assessed as having the greatest negative impact in terms of probability and conceivable effects on operations. This work contributes to the strategic and operational management of the company. Risks of a strategic character primarily comprise risks associated with changes in the business environment and increased competition, shifts in technology and in customers’ purchasing habits, market positioning, and product range and offering as well as growth. Operational risks are mainly risks associated with purchasing and products, sustainability, IT systems, logistics, key individuals, leases, shrinkage and regulatory risks, while risks of a financial nature consist primarily of risks associated with changes in the economy, currency exposure, transport costs, raw material prices and salary inflation. For a detailed description of the Group’s significant risks and risk management, refer to pages 63-67 of the 2021/22 Annual Report. Risks and uncertainties associated with COVID-19 and the developments in Ukraine, the effects of these and potential impact on the Group’s operations and earnings are routinely evaluated and monitored. The same applies to the macro situation at large with increased inflation and higher interest-rates. Nomination Committee and the 2023 Annual General Meeting The members of the Nomination Committee were appointed based on the ownership structure at 30 September 2022. Malin Persson, nominated by the Haid owner family, is Chairman of the Nomination Committee. The other members are Kenneth Bengtsson, Chairman of the Board of Clas Ohlson AB, Johan Ståhl, nominated by the Tidstrand owner family, Ricard Wennerklint, nominated by If Skadeförsäkring AB and Richard Torgerson, nominated by Nordea Funds. The Annual General Meeting will be held on 8 September 2023. For more information, visit https://about.clasohlson.com/en/corporate-governance/nomination-committee/ Audit This report is unaudited. Clas Ohlson AB (publ) Insjön, 8 March 2023 Kristofer Tonström President and CEO ===== SIDA 10 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 10 Financial statements Consolidated Income Statement Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Sales 2,954.2 2,831.3 7,248.0 7,003.6 9,028.0 8,783.7 Cost of goods sold -1,825.8 -1,657.2 -4,553.0 -4,105.9 -5,626.0 -5,178.9 Gross profit 1,128.4 1,174.0 2,695.0 2,897.7 3,402.1 3,604.8 Selling expenses -760.4 -743.7 -2,090.3 -2,037.5 -2,756.7 -2,703.9 Administrative expenses -50.6 -51.2 -145.2 -151.7 -193.4 -199.9 Other operating income*/expenses** -102.1 -1.2 -148.0 20.7 -150.2 18.5 Operating profit*** 215.2 377.9 311.5 729.2 301.7 719.4 Financial income 1.2 0.5 2.9 1.0 3.9 2.0 Financial expenses -16.5 -16.4 -49.5 -49.3 -65.3 -65.1 Profit after financial items 199.9 362.0 264.8 680.9 240.3 656.4 Income tax**** -41.5 -75.3 -61.2 -142.9 -52.3 -133.9 Profit for the period 158.3 286.7 203.7 538.1 188.0 522.5 ***One-off cost related to disposal of IT system was -99.9 MSEK, recognised in Other operating expenses during the third quarter (remaining costs allocated: Cost of goods sold -6.1 MSEK, Selling expenses -4.9 MSEK, Administrative expenses -5.5 MSEK, Other operating expenses -2.4 MSEK) ****Deferred tax asset amounting to 6.5 MSEK was reversed during the second quarter as cost due to discontinuation of operations in the UK *Non-recurring payment of consolidation fund from FORA during Q2 last year amounted to 24.9 MSEK 3 Months 9 Months 12 Months **Total cost for discontinuation of operations in the UK was -35.0 MSEK during the first quarter Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Profit for the period 158.3 286.7 203.7 538.1 188.0 522.5 Other comprehensive income, net of tax: Items that later can be reversed back to the Consolidated income statement: Exchange rate differences 1.8 32.2 11.3 26.6 -0.1 15.2 Cash flow hedging -17.5 11.9 -12.9 21.8 0.6 35.4 Total -15.7 44.1 -1.6 48.4 0.5 50.6 Items that later can not be reversed back to the Consolidated income statement: Change in fair value of financial assets 0.0 -22.1 -99.1 -48.6 -198.3 -147.8 Total 0.0 -22.1 -99.1 -48.6 -198.3 -147.8 Total other comprehensive income, net of tax -15.7 22.0 -100.7 -0.1 -197.8 -97.2 Total comprehensive income for the period 142.6 308.7 102.9 537.9 -9.8 425.3 Profit for the period attributable to: Parent Company shareholders 158.3 286.7 203.7 538.1 188.0 522.5 Non-controlling interests 0.0 0.0 0.0 0.0 0.0 0.0 Comprehensive income attributable to: Parent Company shareholders 142.6 308.7 102.9 537.9 -9.8 425.3 Non-controlling interests 0.0 0.0 0.0 0.0 0.0 0.0 3 Months 9 Months 12 Months Consolidated Comprehensive Income Statement ===== SIDA 11 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 11 Data per share Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Number of shares before dilution 63,356,565 63,351,333 63,356,527 63,351,269 63,355,261 63,351,284 Number of shares after dilution 63,357,238 63,358,615 63,357,209 63,358,405 63,355,944 63,358,847 Number of shares at end of period 63,356,565 63,351,333 63,356,565 63,351,333 63,356,565 63,351,333 Earnings per share before dilution, SEK 2.50 4.53 3.21 8.49 2.97 8.25 Earnings per share after dilution, SEK 2.50 4.52 3.21 8.49 2.97 8.25 Comprehensive income per share, SEK 2.25 4.87 1.62 8.49 -0.15 6.71 3 Months 9 Months 12 Months Consolidated Balance Sheet 31 Jan 31 Jan 30 Apr MSEK 2023 2022 2022 Assets Intangible assets 337.4 498.1 486.4 Tangible assets 691.7 752.1 737.7 Right-of-use assets 1,600.6 1,801.6 1,678.8 Securities held as fixed assets 58.9 257.3 158.0 Non-current receivables 86.7 101.2 94.7 Inventories 2,125.3 1,949.7 2,198.6 Other receivables 156.6 151.1 137.8 Cash and cash equivalents 81.4 948.9 456.6 Total assets 5,138.6 6,460.0 5,948.6 Equity and liabilities Equity 1,502.5 2,335.0 2,221.6 Long-term lease liabilities, interest bearing 1,167.6 1,371.4 1,255.3 Long-term liabilities, non-interest bearing 201.9 216.2 209.2 Current lease liabilities, interest bearing 528.1 552.3 534.4 Current liabilities, interest bearing 11.8 0.0 0.0 Current liabilities, non-interest bearing 1,726.6 1,985.0 1,728.1 Total equity and liabilities 5,138.6 6,460.0 5,948.6 ===== SIDA 12 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 12 Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Operating profit 215.2 377.9 311.5 729.2 301.7 719.4 Adjustment for items not included in cash flow 324.0 203.2 718.9 577.4 901.7 760.2 Interest received 1.2 0.5 2.9 1.0 3.9 2.0 Interest paid -16.5 -16.4 -49.5 -49.3 -65.3 -65.1 Tax paid -8.4 -19.6 -103.6 -67.9 -157.0 -121.2 Cash flow from operating activities before changes in working capital 515.5 545.5 880.1 1,190.5 985.0 1,295.4 Change in working capital 632.6 88.9 66.8 110.9 -356.2 -309.3 Cash flow from operating activities 1,148.1 634.4 946.8 1,301.4 628.8 986.1 Investments in intangible assets -4.8 -13.1 -35.6 -37.5 -51.2 -53.0 Investments in tangible assets -18.0 -19.3 -65.3 -72.2 -92.4 -99.4 Investments in securities held as fixed assets 0.0 0.0 0.0 -6.3 0.0 -6.2 Change in current investments 0.0 0.0 0.0 0.1 0.8 0.9 Cash flow from investing activities -22.7 -32.4 -100.9 -115.8 -142.8 -157.7 Change in current liabilities, interest-bearing -590.1 0.0 11.8 0.0 11.8 0.0 Repayment of lease liabilities -134.5 -123.1 -410.8 -378.3 -543.9 -514.1 Change in non-current receivable 0.0 0.0 0.0 0.8 0.1 0.9 Dividend to shareholders -411.8 -197.7 -823.6 -395.9 -823.6 -395.9 Cash flow from financing activities -1,136.4 -320.8 -1,222.6 -773.4 -1,355.6 -909.2 Cash flow for the period -11.1 281.3 -376.7 412.1 -869.6 -80.8 Cash and cash equivalents at the start of the period 92.1 665.1 456.6 533.8 948.9 533.8 Exchange rate differencs in cash and cash equivalents 0.4 2.5 1.5 3.0 2.2 3.7 Cash and cash equivalents at the end of the period 81.4 948.9 81.4 948.9 81.4 456.6 3 Months 9 Months 12 Months Consolidated Cash Flow ===== SIDA 13 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 13 Sales by segment Nov 2022 Nov 2021 May 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 Sweden 1,299.9 1,267.4 3,241.1 3,168.0 Norway 1,318.0 1,234.0 3,160.4 3,014.1 Finland 336.2 313.2 833.9 778.1 Outside Nordic countries 0.0 16.7 12.6 43.4 Group functions 999.1 841.6 2,703.1 2,292.5 Elimination of sales to other segments -999.1 -841.6 -2,703.1 -2,292.5 Total 2,954.2 2,831.3 7,248.0 7,003.6 3 Months 9 Months Operating profit by segment Nov 2022 Nov 2021 May 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 Sweden 54.2 52.0 135.1 130.1 Norway 56.3 50.9 134.9 127.1 Finland 11.0 8.6 27.3 25.0 Outside Nordic countries 0.0 0.3 0.4 1.5 Group functions 93.8 266.1 13.8 445.5 Total 215.2 377.9 311.5 729.2 3 Months 9 Months Change in equity May 2022 May 2021 MSEK - Jan 2023 - Jan 2022 Equity brought forward 2,221.6 2,195.2 Dividend to shareholders -823.6 -395.9 Acquired non-controlling interest 0.0 -6.2 Paid-in option premiums: Value of employee services 1.6 4.1 Total comprehensive income 102.9 537.9 Equity carried forward 1,502.5 2,335.0 9 Months ===== SIDA 14 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 14 31 Jan 31 Jan MSEK 2023 2022 Securities held as fixed assets, valued at fair value at the beginning of the year 158.0 305.8 Change in fair value -99.1 -48.6 Securities held as fixed assets, valued at fair value at the end of the period 58.9 257.3 The assessed valuation takes into account Mathem's future capital needs. Mathem is valued at a discount of 35 percent compared to the multiple referenced from a peer group of inventory-holding e- commerce retailers. Equity value of 58.9 MSEK. A +/- 10% change in the multiple would have affected the value by +/- 5.9 MSEK. Value changes are accounted for in other comprehensive income. Valuation method for securities held as fixed assets, level 3: Company: MatHem, 5% shareholding Valuation Method: The assessed valuation implies a multiple of 0.6 times the company's revenues per 30th September 2022 and is based on latest available rolling twelve months revenue. Securities held as fixed assets, valued at fair value The table below indicates fair value for financial assets in the Group. The financial instruments are categorized on three levels: Level 1: Fair value established based on listed prices in an active market for the same instrument. Level 2: Fair value established based on valuation techniques with observable market data, either directly (as a price) or indirectly (derived from a price) and not included in Level 1. Level 3: Fair value established using valuation techniques, with significant input from data that is not observable in the market. Forward contracts 31 Jan 31 Jan MSEK 2023 2022 Sell/buy NOK/SEK 2.0 -8.9 NOK/USD -2.6 7.5 Total -0.6 -1.4 As per balance-sheet date, outstanding cash-flow hedging existed according to the following table per currency pair (carrying amount and fair value) Forward contracts belong to the derivative category, which is used for hedging purposes. All derivatives are measured at fair value, established by using forward contract prices on balance-sheet date, meaning, level 2 in the fair value hierarchy according to IFRS 13. As per 31 January 2023 there are positive and negative market values in the currency pairs. Forward contracts with negative market value totalled 6.0 MSEK (9.5), which was recognized in the item Current liabilities, non-interest bearing. Forward contracts with positive market values amounted to 5.4 MSEK (8.1), which is recognized in the item Other receivables. The company hedge the expected flow in each currency every month, with three to nine-month maturities. A deferred tax asset of 0.1 MSEK (0,3) was taken into account and the remaining fair value of -0.5 MSEK (-1,1) was recognized in the hedging reserve within equity. The amount for forward contracts NOK/USD of -2.6 MSEK (7.5) is allocated on the currency pair NOK/SEK with 3,0 MSEK (-11,0) and on the currency pair SEK/USD with - 5,6 MSEK (18.5). ===== SIDA 15 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 15 Key ratios Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Sales growth, % 4.3 7.4 3.5 3.8 5.7 6.0 Gross margin, % 38.2 41.5 37.2 41.4 37.7 41.0 Operating margin, % 7.3 13.3 4.3 10.4 3.3 8.2 Return on capital employed, % – – – – 8.2 17.4 Return on equity, % – – – – 9.9 23.3 Equity/assets ratio, % 29.2 36.1 29.2 36.1 29.2 37.3 Net debt/EBITDA – – – – 1.5 0.9 Sales per sq.m in stores, SEK thousand 10.6 10.1 25.3 25.2 31.4 30.7 Number of stores at period end 224 229 224 229 224 229 Average number of employees 3,105 3,159 3,165 3,159 3,152 3,147 Data per share Number of shares before dilution 63,356,565 63,351,333 63,356,527 63,351,269 63,355,261 63,351,284 Number of shares after dilution 63,357,238 63,358,615 63,357,209 63,358,405 63,355,944 63,358,847 Number of shares at period end 63,356,565 63,351,333 63,356,565 63,351,333 63,356,565 63,351,333 Earnings per share before dilution, SEK 2.50 4.53 3.21 8.49 2.97 8.25 Earnings per share after dilution, SEK 2.50 4.52 3.21 8.49 2.97 8.25 Comprehensive income per share, SEK 2.25 4.87 1.62 8.49 -0.15 6.71 Cash flow per share*, SEK 18.12 10.01 14.94 20.54 9.93 15.57 Equity per share, SEK 23.71 36.86 23.71 36.86 23.71 35.07 3 Months 9 Months 12 Months * From operating activities Summary of the effect of IFRS 16 Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Operating profit, MSEK 215.2 377.9 311.5 729.2 301.7 719.4 Operating profit, excl. IFRS 16, MSEK 198.4 359.4 254.9 672.0 224.7 641.9 Profit after financial items, MSEK 199.9 362.0 264.8 680.9 240.3 656.4 Profit after financial items, excl IFRS 16, MSEK 197.3 359.1 251.5 670.6 221.6 640.6 Profit for the period, MSEK 158.3 286.7 203.7 538.1 188.0 522.5 Profit for the period, excl. IFRS 16, MSEK 156.3 283.8 193.1 529.3 173.2 509.2 Equity/assets ratio, % 29.2 36.1 29.2 36.1 29.2 37.3 Equity/assets ratio, excl. IFRS 16, % 45.5 52.8 45.5 52.8 45.5 54.8 Net debt/EBITDA - - - - 1.5 0.9 Net debt/EBITDA, excl IFRS 16 - - - - -0.1 -0.5 3 mån 12 mån 12 mån ===== SIDA 16 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 16 Quarterly overview Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 MSEK 20/21 20/21 21/22 21/22 21/22 21/22 22/23 22/23 22/23 Sales 2,635.3 1,538.5 2,055.6 2,116.8 2,831.3 1,780.1 2,043.6 2,250.2 2,954.2 Of which online sales 288.2 273.8 218.8 202.0 329.0 221.5 232.0 258.3 343.5 Cost of goods sold -1,546.1 -925.2 -1,244.4 -1,204.3 -1,657.2 -1,073.0 -1,325.3 -1,401.9 -1,825.8 Gross profit 1,089.2 613.3 811.2 912.5 1,174.0 707.1 718.3 848.4 1,128.4 Selling expenses -683.3 -629.7 -614.1 -679.7 -743.7 -666.4 -648.8 -681.0 -760.4 Administrative expenses -46.8 -48.0 -49.7 -50.7 -51.2 -48.3 -44.4 -50.2 -50.6 Other operating income/expenses -0.9 0.3 -0.3 22.2 -1.2 -2.2 -41.2 -4.7 -102.1 Operating profit 358.3 -64.0 147.1 204.2 377.9 -9.8 -16.2 112.5 215.2 Financial income 0.1 0.1 0.3 0.3 0.5 1.0 1.0 0.7 1.2 Financial expenses -15.5 -15.9 -16.4 -16.5 -16.4 -15.7 -15.5 -17.5 -16.5 Profit after financial items 342.8 -79.8 131.0 188.0 362.0 -24.5 -30.6 95.6 199.9 Income tax -78.0 15.1 -27.6 -39.9 -75.3 9.0 6.5 -26.1 -41.5 Profit for the period 264.8 -64.7 103.3 148.1 286.7 -15.6 -24.1 69.5 158.3 Assets Intangible assets 546.0 538.3 527.2 511.6 498.1 486.4 475.3 460.8 337.4 Tangible assets 764.2 786.8 772.5 763.0 752.1 737.7 714.3 711.3 691.7 Right-of-use assets 1,824.2 1,915.0 1,860.6 1,828.6 1,801.6 1,678.8 1,604.4 1,573.0 1,600.6 Securities held as fixed assets 270.3 305.8 300.8 279.4 257.3 158.0 131.7 58.9 58.9 Non-current receivables 72.1 109.4 101.0 103.6 101.2 94.7 92.5 95.3 86.7 Inventories 1,574.8 1,831.7 1,793.3 2,114.1 1,949.7 2,198.6 2,475.7 2,811.3 2,125.3 Other receivables 110.0 106.6 109.3 130.1 151.1 137.8 170.1 199.9 156.6 Cash and cash equivalents 956.7 533.8 756.6 665.1 948.9 456.6 260.1 92.1 81.4 Total assets 6,118.4 6,127.4 6,221.2 6,395.4 6,460.0 5,948.6 5,924.1 6,002.7 5,138.6 Equity and liabilities Equity attributable to owners of the parent 2,212.0 2,189.4 2,315.7 2,029.7 2,335.0 2,221.6 2,168.7 1,358.5 1,502.5 Equity attributable to non-controlling interests 6.1 5.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total equity 2,218.1 2,195.2 2,315.7 2,029.7 2,335.0 2,221.6 2,168.7 1,358.5 1,502.5 Long-term lease liabilities, interest bearing 1,446.9 1,542.7 1,483.4 1,441.2 1,371.4 1,255.3 1,198.6 1,163.4 1,167.6 Long-term liabilities, non-interest bearing 217.4 209.9 220.3 212.9 216.2 209.2 208.1 206.4 201.9 Current lease liabilities, interest bearing 470.6 498.8 499.9 509.2 552.3 534.4 512.5 509.1 528.1 Current liabilities, interest bearing 0.0 0.0 0.0 0.0 0.0 0.0 0.0 601.9 11.8 Current liabilities, non-interest bearing 1,765.3 1,680.7 1,701.9 2,202.5 1,985.0 1,728.1 1,836.3 2,163.5 1,726.6 Total equity and liabilities 6,118.4 6,127.4 6,221.2 6,395.4 6,460.0 5,948.6 5,924.1 6,002.7 5,138.6 Key ratios for the period Gross margin, % 41.3 39.9 39.5 43.1 41.5 39.7 35.1 37.7 38.2 Operating margin, % 13.6 -4.2 7.2 9.6 13.3 -0.6 -0.8 5.0 7.3 Earnings per share before dilution, SEK 4.18 -1.02 1.63 2.34 4.53 -0.25 -0.38 1.10 2.50 Earnings per share after dilution, SEK 4.18 -1.02 1.63 2.33 4.52 -0.25 -0.38 1.10 2.50 Equity per share, SEK 35.02 34.65 36.55 32.04 36.86 35.07 34.23 21.44 23.71 ===== SIDA 17 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 17 Parent Company Income Statement Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 MSEK Note - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Sales 2,299.1 2,109.1 5,944.2 5,460.5 7,671.2 7,187.5 Cost of goods sold 1 -1,645.7 -1,507.4 -4,431.5 -3,907.8 -5,618.5 -5,094.8 Gross profit 653.4 601.7 1,512.6 1,552.7 2,052.6 2,092.7 Selling expenses 1 -401.0 -437.3 -1,126.3 -1,229.0 -1,428.2 -1,530.9 Administrative expenses 1 -41.5 -41.7 -120.7 -126.9 -148.8 -155.0 Other operating income/expenses -101.6 -1.1 -138.0 22.6 -139.6 21.0 Operating profit 109.2 121.6 127.7 219.4 336.2 427.9 Dividends from group companies 0.0 0.0 0.0 0.0 177.9 177.9 Financial income 0.9 0.2 1.9 0.3 3.0 1.4 Financial expenses -4.7 -1.0 -9.8 -2.2 -10.8 -3.2 Profit after financial items 105.4 120.9 119.8 217.5 506.3 604.0 Appropriations 0.0 0.0 0.0 -0.4 2.1 1.7 Profit before tax 105.4 120.9 119.8 217.1 508.4 605.7 Income tax -21.8 -25.6 -24.3 -46.0 -69.3 -91.1 Profit for the period 83.6 95.3 95.5 171.0 439.1 514.6 3 Months 9 Months 12 Months Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 83.6 95.3 95.5 171.0 439.1 514.6 0.0 -22.1 -99.1 -48.6 -198.3 -147.8 Total 0.0 -22.1 -99.1 -48.6 -198.3 -147.8 0.0 -22.1 -99.1 -48.6 -198.3 -147.8 83.6 73.1 -3.6 122.5 240.7 366.8 Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Depreciations for the period 50.8 49.5 151.2 145.8 200.8 195.3 12 Months Total comprehensive income Parent Company Comprehensive Income Statement Items that later can not be reversed back to the Consolidated income statement: Note 1 Depreciations 3 Months 9 Months Change in fair value of financial assets Other comprehensive income, net of tax 3 Months 9 Months 12 Months Profit for the period Other comprehensive income, net of tax: ===== SIDA 18 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 18 Accounting policies Compliance with regulation and reporting standards Clas Ohlson applies the International Financial Reporting Standards (IFRS) and interpretations from the IFRS Interpretation Committee (IFRIC) adopted by the EU. This interim report has been prepared in accordance with the Swedish Annual Accounts Act, IAS 34 Interim Financial Reporting and RFR 1 Supplementary Accounting Rules for Groups. Disclosures in accordance with IAS 34 Interim Financial Reporting are provided in the notes and elsewhere in this interim report. Basis for reporting The Parent Company’s financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board’s Recommendation RFR 2. The same accounting policies are applied as for the Group, except in those cases described under the section headed “Parent Company accounting policies” in the 2021/22 Annual Report on page 92. For the consolidated financial statements, the same accounting policies and calculation methods as in the latest annual report are applied. No new or revised IFRS and interpretations applied from 1 May 2022 have had any discernible effect on the consolidated financial statements. For a more detailed description of the accounting policies applied to the Group and Parent Company in this interim report, refer to the 2021/22 Annual Report, pages 87-92. Parent Company Balance Sheet 31 Jan 31 Jan 30 Apr MSEK 2023 2022 2022 Assets Intangible assets 333.2 497.7 484.2 Tangible assets 497.4 543.4 528.8 Financial assets 109.0 309.4 210.2 Inventories 1,581.1 1,424.1 1,636.6 Other receivables 161.7 143.5 234.0 Cash and cash equivalents 17.0 893.5 375.8 Total assets 2,699.6 3,811.6 3,469.7 Equity and liabilities Equity 378.2 961.8 1,203.9 Untaxed reserves 980.6 982.7 980.6 Provisions 80.4 67.4 62.0 Current liabilities, interest bearing 11.8 0.0 0.0 Current liabilities, non-interest bearing 1,248.5 1,799.7 1,223.2 Total equity and liabilities 2,699.6 3,811.6 3,469.7 ===== SIDA 19 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 19 Alternative performance measures This section contains a reconciliation of certain alternative performance measures (APMs) with the closest reconcilable items in the financial statements. As analysis tools, APMs are limited, and must be considered in their context and not as a replacement of financial measures prepared in accordance with IFRS. APMs are presented to improve an investor’s evaluation of the operations, as an aid in forecasts of forthcoming periods, and to simplify meaningful comparisons of earnings between periods. Management uses these APMs, for example, to evaluate the operating activities compared with previous results, for internal planning and forecasts and to calculate certain performance-related remuneration. For definitions, refer to page 22. The APMs recognised in this quarterly report may differ from similarly named measures used by other companies. Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 Return on equity - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Net profit for the period, MSEK – – – – 188.0 522.5 Average equity, MSEK – – – – 1,902.6 2,238.6 Return on equity – – – – 9.9% 23.3% 3 Months 9 Months 12 Months Reason for use: Return on equity is a measure of profitability in relation to the book value of equity. Retun on equity is also a measure of how investments are used to generate increased income. Return on capital employed Operating profit, MSEK – – – – 301.7 719.4 Interest income, MSEK – – – – 3.9 2.0 Average capital employed, MSEK – – – – 3,716.5 4,142.4 Return on capital employed – – – – 8.2% 17.4% Reason for use: Return on capital employed is a measure of profitability after taking into account the amount of capital used. A higher return on capital employed indicates that capital is used more efficiently. Gross margin Gross profit, MSEK 1,128.4 1,174.0 2,695.0 2,897.7 3,402.1 3,604.8 Sales, MSEK 2,954.2 2,831.3 7,248.0 7,003.6 9,028.0 8,783.7 Gross margin 38.2% 41.5% 37.2% 41.4% 37.7% 41.0% Reason for use: Gross margin shows the difference between net sales and the cost of goods sold expressed as a percentage of net sales. Gross margin is affected by several factors, for example, product mix, price trend and cost reductions. Gross profit, MSEK Sales 2,954.2 2,831.3 7,248.0 7,003.6 9,028.0 8,783.7 Cost of goods sold -1,825.8 -1,657.2 -4,553.0 -4,105.9 -5,626.0 -5,178.9 Gross profit 1,128.4 1,174.0 2,695.0 2,897.7 3,402.1 3,604.8 Reason for use: Gross profit shows the difference between net sales and the cost of goods sold. Gross profit is affected by several factors, for example, product mix, price trend and cost reductions. Equity per share, SEK Total equity, MSEK 1,502.5 2,335.0 1,502.5 2,335.0 1,502.5 2,221.6 Number of shares at end of period (millions of share) 63.36 63.35 63.36 63.35 63.36 63.35 Equity per share 23.71 36.86 23.71 36.86 23.71 35.07 Reason for use : Equity per share measures the company´s net value per share and determines whether a company increases its shareholders capital over time. EBITDA, MSEK Operating profit 215.2 377.9 311.5 729.2 301.7 719.4 Depreciation 194.1 191.0 589.4 564.7 777.8 753.1 EBITDA 409.4 568.9 900.9 1,294.0 1,079.5 1,472.6 Reason for use: Measures the financial performance before depreciation, interest and tax. ===== SIDA 20 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 20 Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 EBITDA excl IFRS 16, MSEK - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Operating profit excl IFRS 16 198.4 359.4 254.9 672.0 224.7 641.9 Depreciation excl IFRS 16 64.2 63.4 192.5 187.4 256.4 251.2 EBITDA excl IFRS 16 262.6 422.9 447.4 859.4 481.1 893.1 Reason for use: Measures the financial performance before depreciation, interest and tax. 3 Months 9 Months 12 Months Sales growth, MSEK Sales actual period 2,954.2 2,831.3 7,248.0 7,003.6 9,028.0 8,783.7 Sales previous period 2,831.3 2,635.3 7,003.6 6,745.9 8,542.1 8,284.4 Sales growth 4.3% 7.4% 3.5% 3.8% 5.7% 6.0% Reason for use : The change in sales reflects the company´s realised sales growth over time. Average inventory value, MSEK Average inventory value – – – – 2,394.1 1,985.9 Reason for use: Shows average inventory value over the past 12 months. Cash flow from operating activities per share, SEK Cash flow from operating activities, MSEK 1,148.1 634.4 946.8 1,301.4 628.8 986.1 Number of shares before the dilution (millions of share) 63.36 63.35 63.36 63.35 63.36 63.35 Cash flow from operating activities per share 18.12 10.01 14.94 20.54 9.93 15.57 Reason for use: Cash flow from operating activities per share measures the cash flow that the company generates per share before capital investments and cash flows attributable to the company’s financing . Net debt, MSEK Interest bearing liabilities – – - - 1,707.6 1,789.7 Cash and cash equivalents – – - - 81.4 456.6 Total Net debt – – - - 1,626.1 1,333.1 Reason for use: Net debt shows the company's indebtedness over time. Net debt excl IFRS 16, MSEK Interest bearing liabilities excl lease liabilities – – - - 11.8 0.0 Cash and cash equivalents – – - - 81.4 456.6 Total Net debt excl IFRS 16 – – - - -69.7 -456.6 Reason for use: Net debt shows the company's indebtedness over time. Profit after financial items excl IFRS 16, MSEK Profit after financial items 199.9 362.0 264.8 680.9 240.3 656.4 IFRS 16 effect -2.6 -2.9 -13.3 -10.4 -18.7 -15.8 Profit after financial items excl IFRS 16 197.3 359.1 251.5 670.6 221.6 640.6 Reason for use: To create comparability in analyses where years prior to IFRS 16 are included. Profit for the period, excl IFRS 16, MSEK Profit for the period 158.3 286.7 203.7 538.1 188.0 522.5 IFRS 16 effect -2.0 -2.9 -10.5 -8.8 -14.8 -13.3 Profit for the period excl IFRS 16 156.3 283.8 193.1 529.3 173.2 509.2 Reason for use: To create comparability in analyses where years prior to IFRS 16 are included. Working capital, MSEK Total current assets 2,363.3 3,049.7 2,363.3 3,049.7 2,363.3 2,793.0 -Cash and cash equivalents -81.4 -948.9 -81.4 -948.9 -81.4 -456.6 -Current non-interest bearing liabilities -1,726.6 -1,985.0 -1,726.6 -1,985.0 -1,726.6 -1,728.1 Working capital 555.2 115.8 555.2 115.8 555.2 608.3 Reason for use : Working capital is used to measure the company ’s ability to meet short-term capital requirements . Operating margin Operating profit, MSEK 215.2 377.9 311.5 729.2 301.7 719.4 Sales, MSEK 2,954.2 2,831.3 7,248.0 7,003.6 9,028.0 8,783.7 Operating margin 7.3% 13.3% 4.3% 10.4% 3.3% 8.2% Reason for use: The operating margin shows operating profit as a percentage of net sales and shows operational profitability. ===== SIDA 21 ===== FINANCIAL STATEMENTS CLAS OHLSON NINE - MONTH REPORT 2022/23 21 Nov 2022 Nov 2021 May 2022 May 2021 Feb 2022 May 2021 Operating profit excl IFRS 16 - Jan 2023 - Jan 2022 - Jan 2023 - Jan 2022 - Jan 2023 - Apr 2022 Operating profit, MSEK 215.2 377.9 311.5 729.2 301.7 719.4 IFRS 16-effect -16.8 -18.5 -56.6 -57.2 -77.0 -77.5 Operating profit excl IFRS 16 198.4 359.4 254.9 672.0 224.7 641.9 Reason for use: To create comparability in analyses where years prior to IFRS 16 are included. 3 Months 9 Months 12 Months Equity/assets ratio Total equity, MSEK 1,502.5 2,335.0 1,502.5 2,335.0 1,502.5 2,221.6 Total assets, MSEK 5,138.6 6,460.0 5,138.6 6,460.0 5,138.6 5,948.6 Equity/Assets ratio 29.2% 36.1% 29.2% 36.1% 29.2% 37.3% Reason for use: A high equity/assets ratio provides the financial scope and independence required for conducting the operations and managing variations in the need for working capital and for capitalising on business opportunities. Equity/assets ratio excl IFRS 16 Total equity excl IFRS 16, MSEK 1,617.4 2,462.2 1,617.4 2,462.2 1,617.4 2,344.2 Total assets excl IFRS 16, MSEK 3,557.7 4,663.5 3,557.7 4,663.5 3,557.7 4,281.5 Equity/assets ratio excl IFRS 16 45.5% 52.8% 45.5% 52.8% 45.5% 54.8% Reason for use: A high equity/assets ratio provides the financial scope and independence required for conducting the operations and managing variations in the need for working capital and for capitalising on business opportunities. Capital employed, MSEK Total assets 5,138.6 6,460.0 5,138.6 6,460.0 5,138.6 5,948.6 Long-term non-interest bearing liabilities -201.9 -216.2 -201.9 -216.2 -201.9 -209.2 Current non-interest bearing liabilities -1,726.6 -1,985.0 -1,726.6 -1,985.0 -1,726.6 -1,728.1 Capital employed 3,210.0 4,258.7 3,210.0 4,258.7 3,210.0 4,011.2 Reason for use : Capital employed measures the company ’s ability, in addition to cash balances and cash equivalents , to meet the needs of the operations . Comprehensive income per share, SEK Comprehensive income for the period, MSEK 142.6 308.7 102.9 537.9 -9.8 425.3 Average number of shares before dilution (millions of share) 63.36 63.35 63.36 63.35 63.36 63.35 Comprehensive income per share 2.25 4.87 1.62 8.49 -0.15 6.71 Reason for use: Measures the comprehensive income in relation to average number of shares before dilution. Earnings per share (before and after dilution), SEK* Net profit for the period, MSEK 158.3 286.7 203.7 538.1 188.0 522.5 Number of shares before dilution (millions of share) 63.36 63.35 63.36 63.35 63.36 63.35 Number of shares after dilution (millions of share) 63.36 63.36 63.36 63.36 63.36 63.36 Number of shares before dilution 2.50 4.53 3.21 8.49 2.97 8.25 Number of shares after dilution 2.50 4.52 3.21 8.49 2.97 8.25 *Defined in accordance with IFRS ===== SIDA 22 ===== KEY RATIO DEFINITIONS CLAS OHLSON NINE - MONTH REPORT 2022/23 22 Key ratio definitions Clas Ohlson uses certain financial measures in this interim report that are not defined in accordance with IFRS. Clas Ohlson believes that these key ratios are relevant to users of the financial report as a supplement for assessing Clas Ohlson’s performance. These financial measures are not always comparable with the measures used by other companies since not all companies calculate such financial measures in the same way. Accordingly, these financial measures are not to be regarded as a replacement for measures defined according to IFRS. The measures not defined according to IFRS are presented below, unless otherwise stated. Return on equity Net profit for the period expressed as a percentage of average equity. Average equity is calculated as the total equity for the most recent 12 months divided by 12. Return on capital employed Operating profit plus financial income expressed as a percentage of average capital employed. Average capital employed is calculated as the total capital employed for the most recent 12 months divided by 12. Gross margin Gross profit divided by sales for the period. Gross profit Gross profit is calculated as the total of sales less cost of goods sold. Dividend yield Dividend per share divided by the year-end share price. EBITDA Operating profit/loss before interest, tax, depreciation and amortisation. EBITDA excl IFRS 16 Operating profit/loss before interest, tax, impairment, depreciation and amortisation excl effect on operating expenses according to IFRS 16. Equity per share Equity divided by the number of shares outstanding at the end of the period. Share of selling expenses, % Selling expenses in relation to sales. Sales growth Sales in relation to sales during the year-earlier period. Average inventory value Average inventory value is calculated as the total inventories for the most recent 12 months divided by 12. Cash flow from operating activities Operating profit adjusted for items not included in cash flow, interest, paid tax and change in working capital. Cash flow from operating activities per share Cash flow from operating activities divided by the average number of shares before dilution. Net debt Interest-bearing liabilities less cash and cash equivalents. Net debt excl IFRS 16 Interest-bearing liabilities excl interest-bearing lease liabilities less cash and cash equivalents. Net debt/EBITDA Net debt divided by EBITDA for the last 12 months. Organic growth Sales growth in local currencies, excluding acquisitions. P/E ratio Share price at year-end divided by earnings per share before dilution. Profit after financial items excl IFRS 16 Profit after financial items excluding the effects attributable to IFRS 16. Profit after tax excl IFRS 16 Profit after tax excluding the effects attributable to IFRS 16. Working capital The total of current assets, minus cash and cash equivalents (inventories and current receivables), less current non-interest bearing liabilities. Operating margin Operating profit divided by sales for the period. Operating profit Operating profit comprises profit before financial items and tax. Operating profit excl IFRS 16 Operating profit comprises profit before financial items and tax excl effects on operating expenses according to IFRS 16. Equity/assets ratio Equity at the end of the period divided by the balance-sheet total (total assets). ===== SIDA 23 ===== KEY RATIO DEFINITIONS CLAS OHLSON NINE - MONTH REPORT 2022/23 23 Equity/assets ratio excl IFRS 16 Equity at the end of the period divided by the balance-sheet total (total assets) excl effects relating to equity and interest-bearing lease assets according to IFRS 16. Capital employed Balance-sheet total (total assets) less current liabilities and non- current liabilities, non-interest-bearing liabilities. Comprehensive income per share Comprehensive income divided by average number of shares before dilution. Payout ratio Dividend divided by earnings per share before dilution. Earnings per share (before and after dilution)* Profit for the period divided by the number of shares (before and after dilution). *Defined in accordance with IFRS. ===== SIDA 24 ===== GLOSSARY CLAS OHLSON NINE - MONTH REPORT 2022/23 24 Glossary Clas Office Our concept that facilitates purchases for our corporate customers. Club Clas Our loyalty programme, our loyalty club. Online sales Sales whereby the customers shops via digital channels from Clas Ohlson or external partners. Sales per square metre Store sales in relation to the effective retail space. For new stores, a conversion has been made in relation to how long the store has been open. GRI The Global Reporting Initiative, a global standard for sustainability reporting. Conversion rate The percentage of visitors who make a purchase. Cost of goods sold Cost for purchases of goods and transport costs, customs and handling costs until the goods are displayed in a store or delivered to the customer. Omni-channel A shopping experience where customers perceive a seamless interaction between physical stores, the online store and telephone sales. Products for a more sustainable lifestyle Products with a positive, or significantly lower, environmental impact throughout their life cycle than a standard product. Average receipt Average amount per purchase. Store traffic Number of visitors. Code of Conduct The standards we set for ourselves, and the suppliers of our products and services, regarding working conditions, workplace health and safety and the environment. ===== SIDA 25 ===== STORE OVERVIEW CLAS OHLSON NINE - MONTH REPORT 2022/23 25 Store overview Update on store network Clas Ohlson’s ongoing review of the store network takes into consideration the market conditions, new customer behaviour patterns, demand projections and contracts signed with property owners. Geographic location, testing new store concepts and store sizes are continuously evaluated. On the reporting date, the number of contracted forthcoming store openings was zero, and the total number of stores was 222 (229). Stores closed • Sweden, Stockholm – Sveavägen, closed 27 January 2023 • Sweden, Uddevalla – City Gallerian, closed 3 March 2023 • Sweden, Gothenburg – Backaplan, closed 3 March 2023 Events after the end of the reporting date • Sweden, Kalmar – Baronen, scheduled to close summer 2023 For more information, refer to the detailed list on the website about.clasohlson.com/en/about-us/stores-markets-sales-channels/our- stores/ SWEDEN 1,300 MSEK 95 NORWAY 1,318 MSEK 92 FINLAND 336 MSEK 37 Sales Q3 2022/23 Stores per 31 January 2023 Total: 224 About 40% of our purchases are made directly via in-house purchasers. CHINA VIETNAM POLAND ===== SIDA 26 ===== THE SHARE CLAS OHLSON NINE - MONTH REPORT 2022/23 26 The share Clas Ohlson Series B shares have been listed on Nasdaq Stockholm since 1999 and are included in the Consumer Services sector index. At 31 January 2023, the share price was SEK 69.60 and the total market capitalisation amounted to 4,410 MSEK. Number of shares The number of registered shares totalled 65,600,000 (5,760,000 Series A shares and 59,840,000 Series B shares), unchanged from the preceding year. On 31 January 2023, the company held 2,243,435 shares (2,248,667), corresponding to 3.4 per cent of the total number of registered shares. At the end of the period, the number of shares outstanding, net after buy-back, was 63,356,565 (63,351,333). Dividend policy Clas Ohlson’s dividend policy is that the dividend is to comprise at least 50 per cent of earnings per share after tax, taking into account the company’s financial position. The AGM on 9 September 2022 approved the proposed dividend of 13 SEK per share, of which 6.75 SEK per share pertains to an ordinary dividend and 6.25 SEK per share pertains to an extraordinary dividend. The dividend was paid out in two separate payments of 6.50 SEK per share each. The record date for the first payment was set as 16 September 2022 and the second payment as 17 January 2023. Owner CLAS A CLAS B Capital Votes Haid family 3,023,880 12,029,103 23.0% 36.0% Tidstrand family 2,736,120 7,079,828 15.0% 29.3% Nordea Fonder 5,283,178 8.1% 4.5% If Skadeförsäkring AB 2,427,530 3.7% 2.1% Vanguard 1,334,768 2.0% 1.1% Norges Bank 957,145 1.5% 0.8% Dimensional Fund Advisors 870,275 1.3% 0.7% Avanza Pension 860,669 1.3% 0.7% Fidelity International (FIL) 728,173 1.1% 0.6% SHB Fonder & Liv 690,917 1.1% 0.6% Acadian Asset Management 647,082 1.0% 0.6% BlackRock 595,451 0.9% 0.5% SEB Fonder & Liv 389,494 0.6% 0.3% American Century Investment Management 351,426 0.5% 0.3% WisdomTree Asset Management 323,348 0.5% 0.3% Total top 15 5,760,000 34,568,387 61.5% 78.5% Other shareholders 25,271,613 38.5% 21.5% Total 5,760,000 59,840,000 100.0% 100.0% Shares owned by Clas Ohlson 2,243,435 3.4% 1.9% The largest shareholders per 31 January 2023 Share data Listing Nasdaq Stockholm Mid Cap Ticker Clas B Industry Consumer Services ISIN code SE0000584948 Earnings per share, SEK Dividend per share, SEK -2.00 -1.00 0. 00 1. 00 2. 00 3. 00 4. 00 5. 00 Q1 Q2 Q3 Q4 2021/22 2022/23 0. 00 1. 00 2. 00 3. 00 4. 00 5. 00 6. 00 7. 00 *Ordinary dividend **Extra dividend ===== SIDA 27 ===== CLAS OHLSON IN BRIEF CLAS OHLSON NINE - MONTH REPORT 2022/23 27 Clas Ohlson in brief Our mission is to help and inspire people to improve their everyday lives by offering smart, simple, practical solutions at attractive prices. Clas Ohlson was founded in 1918 as a mail order business based in Insjön, Dalarna, Sweden. Today, we are a retail company with customers in three markets, approximately 5,000 employees, and sales of approximately 8.8 billion SEK. Our share is listed on Nasdaq Stockholm. We will grow in the Nordic market, focusing on simplifying people’s everyday lives at home through a combination of products, guidance and supplementary services. A developed online business model, unique offering, world-class service and simplified, streamlined operations are critical parts of our growth strategy. Leveraging the strength of our large, loyal customer base, we will play a greater and more important role in every home. Read more about us and our passion about simplifying life in every home at about.clasohlson.com. Operations Clas Ohlson works to help and inspire people to improve their everyday lives by offering smart, simple, practical solutions at attractive prices. Our customer offering comprises a base of hardware, electrical, multimedia, home and leisure products as well as a supplementary offering of services that simplify customers’ daily lives at home. Operations are conducted via stores and online shopping in Sweden, Norway and Finland. www.clasohlson.com Clas Ohlson AB | SE-793 85 Insjön, Sweden | Telephone +46 (0)247 444 00 | Corp. Reg. No. 556035 -8672