===== SIDA 1 ===== CLAS OHLSON THREE - MONTH REPORT 2023/24 1 *The 2023/24 financial year comprises the period from 1 May 2023 to 30 April 2024. Contact person: Niklas Carlsson, Head of Communications & IR +46 247 444 29, niklas.carlsson@clasohlson.se Q1 presentation, 6 September 9:00 a.m. CEST The report will be presented at 9:00 a.m. via a webcast teleconference. For more information, visit https://about.clasohlson.com 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 set out above, on 6 September 2023 at 7:00 a.m. (CEST). This three-month report is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern. May 2023 May 2022 Percentage Aug 2022 May 2022 - Jul 2023 - Jul 2022 change - Jul 2023 - Apr 2023 Sales, MSEK 2,193 2,044 7 9,174 9,024 Operating profit, MSEK -16 -16 4 306 305 Profit after tax, MSEK -26 -24 -9 178 181 Gross margin, % 38.2 35.1 3.1 p.p 38.2 37.5 Operating margin, % -0.7 -0.8 0.1 p.p 3.3 3.4 Return on capital employed, % – – – 9.2 8.8 Return on equity, % – – – 11.8 10.6 Cashflow from operating activities, MSEK 328 -35 1,049 1,304 941 Equity/assets ratio, % 27.6 36.6 -9.0 p.p 27.6 28.1 Net debt/EBITDA ratio – – – 1.3 1.6 Net debt/EBITDA excl. IFRS 16 ratio – – – -0.1 0.2 Earnings per share before dilution, SEK -0.42 -0.38 -9 2.81 2.85 3 Months 12 Months First quarter – 1 May to 31 July • Sales increased by 7% to 2,193 MSEK (2,044), organic growth up 8% and up 9% in comparable units • Online sales increased by 9% to 253 MSEK (232) • Operating profit, excluding costs of 170 MSEK linked to the write-down of IT systems and headcount reductions, totalled 154 MSEK (previous year 19 MSEK excluding non-recurring costs for the closure of operations in the UK). Operating loss amounted to -16 MSEK (-16) • The operating margin was -0.7% (-0.8) • Net debt/EBITDA (12 months) excluding the effect of IFRS 16 amounted to -0.1 times (-0.4) • Loss after tax totalled -26 MSEK (-24) • Earnings per share amounted to -0.42 SEK (-0.38) Events after the end of the reporting period • Sales in August increased by 14% to 860 MSEK (758), an increase of 14% organically and an increase of 14% in comparable units • Online sales in August increased by 11% to 92 MSEK (83) ORGANIC GROWTH QUARTER ORGANIC GROWTH AUGUST Three-month Report 2023/24 +14% +8% ===== SIDA 2 ===== CEO’S COMMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 2 A strong quarter with sales growth and improved gross margin With an organic growth of 8 per cent and a strengthened gross margin, the 2023/24 financial year has started off well. The positive trend continued in August with organic sales growth of 14 per cent. This, despite relatively weak demand for several typically seasonal products. I see it as a testament to the success of the whole organisation in making the customer offering relevant every month throughout the year and that customers appreciate the service and availability we offer in stores and online. We have achieved this in parallel with extensive cost-saving initiatives, and the underlying operating profit improved significantly compared to previous year. Growth for all prioritised product categories We are continueing to systematically work through our product offering and strengthen our position as the first-hand choice for all home fixing. Our performance in the first quarter shows that these efforts are yielding results. In fact, all five prioritised product categories grew during the quarter in a market characterised by cautious and price-sensitive consumers. There is great interest in products that both save money and are good for the environment, an example of this is a 21-per cent increase in sales of spare parts during the quarter compared with last year. Sales in local currency and comparable units increased by a total of 9 per cent. Online shopping continues to contribute to total growth with sales increasing 9 per cent year-on-year. Savings programmes start to generate effects The realisation of previously announced cost savings is proceeding according to plan. To make our work leaner and quicker, we have changed our way of working and organisation. During the autumn, the workforce at our offices will be reduced by 160 positions, corresponding to 25 per cent of the entire white collar organisation. This, together with an otherwise strong focus on reducing costs, has largely offset increased purchase prices resulting from unfavourable currency exchange rates and higher salaries and rent. Ensuring a competitive cost base is a priority also going forward as uncertainty remains about macroeconomic development, in particular the strong USD, which will have a negative impact on the gross margin. We are also working intensively to quickly adapt prices both up and down to retain our strong price position in each market. In addition, efficiency in the purchasing organisation and robust inventory management have created a good balance in inventory levels. The inventory value was 255 MSEK lower compared with last year. Cash flow from operating activities totalled 328 MSEK for the quarter (-35). Continued implementation of the strategy Clas Ohlson is always assessing opportunities to strengthen the core business. In addition to the development of the product range, expansion of the store network is key to profitable growth. Recently, a new Clas Ohlson store was opened in Kristiansand, Norway, and the objective is to open a net of approximately 10 new stores during this financial year. At the time of writing, a further eight new store contracts have been signed and are scheduled to open before 2024/25. We will also grow profitably online. In this work, our primary focus is to devote all resources to giving customers visiting our own e-commerce, clasohlson.com, the best possible experience. Therefore, in line with the previous decision to end the cooperation with Amazon, we are now choosing to end the partnerships with the e-commerce platforms Mathem and Oda. The Clas Ohlson customer is also the centre point of Club Clas. The number of members has continued to increase, particularly in Norway and Finland, and member sales are becoming an increasingly important part of total sales. Through customised offerings and cost- IN ADDITION TO THE DEVELOPMENT OF THE PRODUCT RANGE, EXPANSION OF THE STORE NETWORK IS KEY TO PROFITABLE GROWTH . THE OBJECTIVE IS TO OPEN A NET OF APPROXIMATELY 10 NEW STORES DURING THIS FINANCIAL YEAR. ===== SIDA 3 ===== CEO’S COMMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 3 efficient communication, Club Clas will continue to strengthen relationships with customers and Clas Ohlson’s position in the market moving forward. Prepared for the autumn season As we now enter the autumn, there is still great uncertainty about the economic situation and how this will impact consumer purchasing behaviour. We are concentrating on what we influence ourselves – delivering on our focus areas for profitable growth and quickly adapting to changes in the market. Preparations for the important Christmas shopping season are also in full swing. With many exciting new products and motivated co-workers, I am convinced that we can successfully create value for customers and shareholders. We look forward to seeing you in our stores and online this autumn. Contents Kristofer Tonström President and CEO of Clas Ohlson AB Financial statements 9 Key ratios 14 Accounting policies 17 Alternative performance measures 18 Key ratio definitions 21 Glossary 22 The share 23 Clas Ohlson in brief 24 Hundreds of customers were present when Clas Ohlson opened a new store in Kristiansand, Norway, in August. ===== SIDA 4 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 4 Sal es First quarter Sales increased 7 per cent to 2,193 MSEK (2,044). Organic sales increased 8 per cent compared with the preceding year. Online sales increased by 9 per cent to 253 MSEK (232). At the end of the quarter, the total number of stores was 221, which was a decrease of a net four stores compared with the year-earlier period (a net decrease of three stores in the previous year). For more information about the store network, refer to page 24. CCI is an indicator calculated as an average of consumer assessments of the following four components; 1) household’s financial situation now and 2) expected financial situation for the next 12 months, 3) expected economic situation for the country for the next 12 months and 4) expected major purchases over the next 12 months. The quarterly value in the diagram above is a weighted average of the monthly outcomes during the quarter. Since Q2 2022/23 a slight recovery have occurred in Sweden, Norway and Finland despite an uncertain economic climate. May 2023 May 2022 MSEK - Jul 2023 - Jul 2022 SEK organic Sweden 1,014 930 9 9 Norway 934 870 7 11 Finland 246 231 6 -3 Outside the Nordics 0 12 – – Total 2,193 2,044 7 8 Of which online sales 253 232 9 10 Distribution of sales 3 Months Percentage change Distribution of sales increase May 2023 Per cent - Jul 2023 Comparable units in local currency 9 Change in store network -1 Exchange-rate effects -1 Total 7 -35.0 -30.0 -25.0 -20.0 -15.0 -10.0 -5.0 0. 0 5. 0 10.0 Q2 21/22 Q3 21/22 Q4 21/22 Q1 22/23 Q2 22/23 Q3 22/23 Q4 22/23 Q1 23/24 Sw eden Norway Finland Consumer Confidence development* *Source: Opinion AS Sales, MSEK Distribution of sales R12, % Distribution of sales, % Distribution of numbers of stores 0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3, 500 Q1 Q2 Q3 Q4 2022/23 2023/24 88 12R12 Stores Onli ne 46 43 11 Q1 Sweden Norway Finland 0 20 40 60 80 100 Swede n Norway Fi nl an d ===== SIDA 5 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 5 Results First quarter The gross margin increased by 3.1 percentage points to 38.2 per cent (35.1). The gross margin was positively impacted by an improved product and price mix, reduced sourcing costs and the effects of hedging (NOK). This was largely offset by a weaker SEK in relation to the purchasing currency (USD). The share of selling expenses declined by 2.0 percentage points to 29.7 per cent (31.7). The share declined mainly as a result of higher sales and cost savings related to previously announced activities in 2022/23. Administrative expenses amounted to -46 MSEK (-44). There was a continued major focus on costs. Operating loss amounted to -16 MSEK (-16) Excluding previously announced write-down of IT systems and costs for headcount reductions of 170 MSEK, operating profit totalled 154 MSEK (previous year 19 MSEK, excluding costs for the closure of operations in the UK of 35 MSEK). The operating margin was -0.7 (-0.8). Loss after financial items totalled - 32 MSEK (- 31). Depreciation for the quarter amounted to 184 MSEK (190). May 2023 May 2022 Aug 2022 May 2022 MSEK - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Sales 2,193.1 2,043.6 9,173.9 9,024.3 Cost of goods sold -1,356.3 -1,325.3 -5,671.7 -5,640.6 Gross profit 836.8 718.3 3,502.2 3,383.6 Selling expenses -652.1 -648.8 -2,730.9 -2,727.6 Administrative expenses -46.0 -44.4 -186.3 -184.8 Other operating income/expenses* -154.3 -41.2 -279.4 -166.3 Operating profit** -15.5 -16.2 305.6 305.0 **Head count reductions during Q1 current year allocates: Cost of goods sold -10.1 MSEK, Selling expenses -6.8 MSEK, Administrative expenses -1.2 MSEK Head count reductions during Q3 last year allocates: Cost of goods sold -6.1 MSEK, Selling expenses -4.9 MSEK, Administrative expenses -5.5 MSEK, Other operating expenses -2.4 MSEK Extracts from Consolidated Income Statement *Write-down of IT systems during Q1 current year was -152.2 MSEK. Total cost for discontinuation of operations in the UK during Q1 last year was -35.0 MSEK Disposal of IT system during Q3 last year was -99.9 MSEK 3 Months 12 Months Specification of change in profits 3 Months May 2023 MSEK - Jul 2023 Operating profit corresponding period previous year -16.2 Profit from sales 42.2 Change in gross margin 66.0 Change in administrative expenses -1.5 Change in expansion costs stores 1.6 Change in depreciation (excl right of use assets) 11.0 Change in depreciation right of use assets -5.5 Change in other operating income/expenses -113.1 Operating profit actual period -15.5 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 Q 1 20 22/2 3 Q 2 Q 3 Q 4 Q 1 20 23/2 4 0. 0 10.0 20.0 30.0 40.0 Q1 Q2 Q3 Q4 2022/23 2023/24 -100 0 100 200 300 Q1 Q2 Q3 Q4 2022/23 2023/24 0. 0 2. 0 4. 0 6. 0 8. 0 10.0 Q 1 20 22/2 3 Q 2 Q 3 Q 4 Q 1 20 23/2 4 ===== SIDA 6 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 6 Spot exchange rates for key currencies averaged 1.00 for NOK and 10.58 for USD, compared with 1.03 and 10.11, respectively, in the year-earlier period. Currency hedging was undertaken in USD and NOK. Currency hedging that fell due during the quarter had a positive impact of 17 MSEK (NOK) on earnings and a negative impact on inventory value through an increase of 1 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. Investments Investments for the quarter amounted to 14 MSEK (32). Of this amount, investments in new or refurbished stores accounted for 5 MSEK (10). Investments in IT systems for the period amounted to 0 MSEK (17). The shares in Mathem were measured at fair value amounting to 9 MSEK, unchanged during the quarter. 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 a write- down of 152 MSEK. Financing and liquidity Cash flow from operating activities for the quarter totalled 328 MSEK (-35). Cash flow for the quarter after investing and financing activities was -37 MSEK (-197). The average 12-month value of inventories was 2,346 MSEK (2,133). Over a rolling 12-month period, the stock turnover rate at the distribution centre was 4.8 times (5.0). At the end of the quarter, the inventory value was 2,221 MSEK (2,476). 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), which were balanced by lower costs for incoming transports. The Group’s net debt at the end of the period, meaning interest-bearing liabilities less cash and cash equivalents, amounted to 1,640 MSEK (1,451). Excluding the effect of IFRS 16, the Group had net cash holdings of 85 MSEK (net cash holdings 260). Excluding the effect of IFRS 16, net debt in relation to EBITDA was -0.1 times (-0.4), which is in accordance with the company’s financial framework. Credits granted and loan commitments amounted to 800 MSEK, of which 23 MSEK had been utilised at the end of the period. The company’s financial position remains strong. The equity/assets ratio was 28 per cent (37). Employees The number of employees in the Group was approximately 5,000. Recalculated to average full-time equivalents (FTEs), this corresponds to an average of 3,142 (3,278) during the quarter. 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 for the financial year amounted to 1,853 MSEK (1,640) and loss after financial items totalled -28 MSEK (-65). Investments for the period amounted to 8 MSEK (27). Contingent liabilities for the Parent Company amounted to 172 MSEK (190). Cash flow, MSEK* *From operating activities -400 -200 0 200 400 600 800 1,000 1,200 1,400 Q1 Q2 Q3 Q4 2022/23 2023/24 ===== SIDA 7 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 7 Cost savings Clas Ohlson has continued efforts to simplify and streamline the organisation. Within the context of this and as previously announced, the company is reducing the workforce by approximately an additional 75 full-time white-collar employees. Also the previously announced evaluation of the company’s IT landscape continued and was completed during the quarter. With a more efficient organisation, a more simple way of working and a strategic direction on lowering IT costs, the company sees opportunities to consolidate and phase out additional IT systems that do not sufficiently support the business moving forward. The measures are expected to deliver cost savings and reduced depreciation totalling approximately 100 MSEK on an annual basis. The measures also entail costs of approximately 170 MSEK recognised in the quarter. The amount is split between 152 MSEK for write-down of IT systems and 18 MSEK in costs for headcount reductions. As previously communicated, approximately 15 MSEK pertaining to costs for headcount reductions is expected to be recognised in forthcoming quarters. The above costs have had a minor impact on cash flow. Events after the end of the reporting period Sales in August Sales in August increased by 14 per cent to 860 MSEK (758). Organic sales increased by 14 per cent compared with the preceding year. Sales in comparable units and local currency increased by 14 per cent. Online sales increased by 11 per cent to 92 MSEK (83). Compared with the same month of the preceding year, the store portfolio was reduced by a net of three stores (reduction of four store in the preceding year). The total number of stores at the end of the period was 221 (224). For more information about the store network, refer to page 24. Total sales during the May-Aug 2023 period increased by 9 per cent to 3,053 MSEK (2,801). Organic sales increased by 14 per cent compared with the preceding year. Sales in comparable units and local currency increased by 11 per cent compared with the preceding year. Online sales for the period increased by 10 per cent to 345 MSEK (315). 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. Distribution of sales MSEK Aug 2023 Aug 2022 SEK organic May-Aug 2023 May-Aug 2022 SEK organic Sweden 381 330 15 15 1,394 1,260 11 11 Norway 379 344 10 14 1,312 1,214 8 12 Finland 101 83 21 8 347 314 10 -0 Outside the Nordics 0 1 – – 0 13 – – Total 860 758 14 14 3,053 2,801 9 9 Of which online sales 92 83 11 11 345 315 10 10 Percentage change Month Accumulated Percentage change ===== SIDA 8 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 8 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 20-24 of the 2022/23 Annual Report. Risks and uncertainties associated with 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. Audit This report is unaudited. Clas Ohlson AB (publ) Insjön, 6 September 2023 Kristofer Tonström President and CEO ===== SIDA 9 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 9 Financial statements Consolidated Income Statement May 2023 May 2022 Aug 2022 May 2022 MSEK - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Sales 2,193.1 2,043.6 9,173.9 9,024.3 Cost of goods sold -1,356.3 -1,325.3 -5,671.7 -5,640.6 Gross profit 836.8 718.3 3,502.2 3,383.6 Selling expenses -652.1 -648.8 -2,730.9 -2,727.6 Administrative expenses -46.0 -44.4 -186.3 -184.8 Other operatioing income 4.3 4.0 18.7 18.4 Other operating expenses* -158.6 -45.2 -298.1 -184.7 Operating profit** -15.5 -16.2 305.6 305.0 Financial income 0.5 1.0 2.9 3.4 Financial expenses -16.6 -15.5 -67.1 -65.9 Profit after financial items -31.6 -30.6 241.5 242.4 Income tax 5.2 6.5 -63.1 -61.8 Profit for the period -26.4 -24.1 178.3 180.6 3 Months 12 Months *Write-down of IT systems during Q1 current year was -152.2 MSEK. Total cost for discontinuation of operations in the UK during Q1 last year was -35.0 MSEK Disposal of IT system during Q3 last year was -99.9 MSEK **Head count reductions during Q1 current year allocates: Cost of goods sold -10.1 MSEK, Selling expenses -6.8 MSEK, Administrative expenses -1.2 MSEK Head count reductions during Q3 last year allocates: Cost of goods sold -6.1 MSEK, Selling expenses -4.9 MSEK, Administrative expenses -5.5 MSEK, Other operating expenses -2.4 MSEK Consolidated Comprehensive Income Statement May 2023 May 2022 Aug 2022 May 2022 MSEK - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Profit for the period -26.4 -24.1 178.3 180.6 Other comprehensive income, net of tax: Items that later can be reversed back to the Consolidated income statement: Exchange rate differences 21.7 -2.3 12.7 -11.2 Cash flow hedging -45.9 0.5 -29.3 17.1 Total -24.2 -1.8 -16.6 5.9 Items that later can not be reversed back to the Consolidated income statement: Change in fair value of financial assets 0.0 -26.3 -122.3 -148.6 Total 0.0 -26.3 -122.3 -148.6 Total other comprehensive income, net of tax -24.2 -28.1 -138.8 -142.7 Total comprehensive income for the period -50.6 -52.3 39.5 37.9 Profit for the period attributable to: Parent Company shareholders -26.4 -24.1 178.3 180.6 Non-controlling interests 0.0 0.0 0.0 0.0 Comprehensive income attributable to: Parent Company shareholders -50.6 -52.3 39.5 37.9 Non-controlling interests 0.0 0.0 0.0 0.0 3 Months 12 Months ===== SIDA 10 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 10 Data per share May 2023 May 2022 Aug 2022 May 2022 - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Number of shares before dilution 63,357,273 63,356,451 63,356,744 63,356,536 Number of shares after dilution 63,357,273 63,358,973 63,356,744 63,357,260 Number of shares at end of period 63,357,289 63,356,565 63,357,289 63,356,565 Earnings per share before dilution, SEK -0.42 -0.38 2.81 2.85 Earnings per share after dilution, SEK -0.42 -0.38 2.81 2.85 Comprehensive income per share, SEK -0.80 -0.82 0.62 0.60 3 Months 12 Months Consolidated Balance Sheet 31 Jul 31 Jul 30 Apr MSEK 2023 2022 2023 Assets IT and software costs 138.0 475.3 307.5 Tangible assets 651.1 714.3 662.0 Right-of use assets 1,644.7 1,604.4 1,553.6 Securities held as fixed assets 9.5 131.7 9.5 Deferred tax assets 74.5 68.4 71.3 Other non-current receivables 12.3 24.1 15.6 Total non-current assets 2,529.9 3,018.2 2,619.5 Inventories 2,221.3 2,475.7 2,177.1 Accounts receivable 41.5 43.6 51.1 Tax assets 31.2 22.7 28.7 Other receivables 14.6 14.9 16.5 Prepaid expenses and accrued income 80.9 89.0 73.8 Cash and cash equivalents 108.9 260.1 143.1 Total current assets 2,498.4 2,905.9 2,490.2 Total assets 5,028.2 5,924.1 5,109.7 Equity and liabilities Capital and reserves attributable to Parent Company shareholders Share capital 82.0 82.0 82.0 Other contributed capital 90.4 90.4 90.4 Other reserves -63.4 -48.4 -40.7 Profit brought forward including profit for the year 1,279.4 2,044.7 1,305.6 Total equity 1,388.4 2,168.7 1,437.4 Long-term lease liabilities, interest bearing 1,182.5 1,198.6 1,111.2 Deferred tax liabilities 164.0 204.6 175.9 Other non-current provisions 0.0 3.4 0.0 Total non-current liabilities 1,346.5 1,406.6 1,287.1 Current lease liabilities, interest bearing 542.5 512.5 521.2 Accounts payable 757.0 840.9 752.7 Tax liability 44.2 53.6 41.2 Other current liabilities 324.6 298.3 212.7 Overdraft facilities 23.5 0.0 244.4 Accrued expenses and prepaid income 518.4 530.4 517.7 Contract liabilities 83.1 113.0 95.3 Total current liabilities 2,293.3 2,348.8 2,385.2 Total equity and liabilities 5,028.2 5,924.1 5,109.7 ===== SIDA 11 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 11 Consolidated Cash Flow May 2023 May 2022 Aug 2022 May 2022 MSEK - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Operating profit -15.5 -16.2 305.6 305.0 Adjustment for items not included in cash flow 325.1 221.8 1,009.7 906.5 Interest received 0.5 1.0 2.9 3.4 Interest paid -16.6 -15.5 -67.1 -65.9 Tax paid -43.8 -69.8 -122.1 -148.1 Cash flow from operating activities before changes in working capital 249.7 121.4 1,129.1 1,000.7 Change in working capital 78.6 -156.0 174.7 -59.9 Cash flow from operating activities 328.3 -34.6 1,303.7 940.8 Investments in intangible assets 0,0 -16.9 -19.0 -35.9 Investments in tangible assets -14.1 -15.5 -86.1 -87.5 Investments in securities held as fixed assets 0.0 0.0 0,0 0,0 Change in current investments 0.0 0,0 0.0 0.0 Cash flow from investing activities -14.1 -32.4 -105.0 -123.4 Change in current liabilities, interest-bearing -220.9 0.0 23.5 244.4 Repayment of lease liabilities -130.1 -129.6 -550.0 -549.5 Change in non-current receivable 0.0 0.0 -0.0 0,0 Dividend to shareholders 0.0 0.0 -823.6 -823.6 Cash flow from financing activities -351.0 -129.5 -1,350.2 -1,128.7 Cash flow for the period -36.8 -196.5 -151.5 -311.2 Cash and cash equivalents at the start of the period 143.1 456.6 260.1 456.6 Exchange rate differencs in cash and cash equivalents 2.6 -0.0 0.3 -2.3 Cash and cash equivalents at the end of the period 108.9 260.1 108.9 143.1 3 Months 12 Months ===== SIDA 12 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 12 Sales by segment* May 2023 May 2022 MSEK - Jul 2023 - Jul 2022 Total sales 2,193.1 2,043.6 Net sales by geographic markets: Sweden 1,013.8 930.4 Norway 933.6 870.2 Finland 245.7 231.0 Outside the Nordics - 12.1 Depreciation intangiable and tangiable assets -52.7 -63.7 Depreciation right-of use assets -131.6 -126.1 EBIT -15.5 -16.2 Net financial items -16.1 -14.5 Result after financial items -31.6 -30.6 Tax 5.2 6.5 Profit for the period -26.4 -24.1 Assets Non-current assets 2,529.9 3,018.2 Current assets 2,498.4 2,905.9 Investments Intagible assets - -16.9 Tangible assets -14.1 -15.5 *The Group’s operations are divided into segments based on how the Group’s senior executives follows up performance and assigns resources. As of financial year 23/24, Clas Ohlson Group comprises one retail segment. The categorization reflects the Group’s organization and shared processes such as purchasing, logistics, sales, etc. Internal monthly follow-up focuses on the Group as a whole, with complementary geographic sales information. The performance measures presented represents the main performance measure by which the operations are evaluated. Detaljhandel Segment 3 Months Change in equity May 2023 May 2022 MSEK - Jul 2023 - Jul 2022 Equity brought forward 1,437.4 2,221.6 Paid-in option premiums: Value of employee services 1.7 -0.6 Total comprehensive income -50.6 -52.3 Equity carried forward 1,388.4 2,168.7 3 Months ===== SIDA 13 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 13 31 Jul 31 Jul MSEK 2023 2022 Securities held as fixed assets, valued at fair value at the beginning of the year 9.5 158.0 Change in fair value 0.0 -26.3 Securities held as fixed assets, valued at fair value at the end of the period 9.5 131.7 The assessed valuation takes into account Mathem's future capital needs. Mathem is valued at a discount of 19 percent compared to the multiple referenced from a peer group of inventory-holding e- commerce retailers. Equity value of 9.5 MSEK. A +/- 10% change in the multiple would have affected the value by +/- 0.9 MSEK. Value changes are accounted for in total comprehensive income. Investment in Mathem’s equity instrument is not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the directors of the Company have elected to designate the investment in equity instrument as at FVTOCI (Fair Value Through the statement of Other Comprehensive Income) as they believe that recognising short-term fluctuations in the investment’s fair value in profit or loss would not be consistent with the Group’s strategy of holding the investment for long-term purposes and realising their performance potential in the long run. No dividends was received from equity investment designated as at FVTOCI. Valuation method for securities held as fixed assets, level 3: Company: MatHem, 5% shareholding Valuation Method: The assessed valuation implies a multiple of 0.5 times the company's revenues per 31st March 2023 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 Jul 31 Jul MSEK 2023 2022 Sell/buy NOK/SEK -12.3 -1.1 NOK/USD -8.3 17.3 Total -20.6 16.3 Deferred tax asset/liability 4.2 -3.4 Forward contracts valued at fair value at the end of the period -16.4 12.9 The amount for forward contracts NOK/USD are allocated as follows: NOK/SEK -13.2 -1.4 SEK/USD 4.9 18.8 Total -8.3 17.3 The currency pairs recognized in the balance sheet are as follows: Current assets 3.5 23.5 Current liabilities 24.1 7.2 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. The company hedge the expected flow in each currency every month, with three to nine-month maturities. Forward contracts with negative market value are recognized in the item Current liabilities, non-interest bearing. Forward contracts with positive market values are recognized in the item Other receivables. ===== SIDA 14 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 14 The quarterly overview is available on https://about.clasohlson.com/en/investors/financial-data/. Key ratios May 2023 May 2022 Aug 2022 May 2022 - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Sales growth, % 7.3 -0.6 4.6 2.7 Gross margin, % 38.2 35.1 38.2 37.5 Operating margin, % -0.7 -0.8 3.3 3.4 Return on capital employed, % – – 9.2 8.8 Return on equity, % – – 11.8 10.6 Equity/assets ratio, % 27.6 36.6 27.6 28.1 Equity/assets ratio, excl IFRS 16, % 43.8 52.8 43.8 43.0 Net debt/EBITDA – – 1.3 1.6 Net debt/EBITDA, excl IFRS 16 – – -0.1 0.2 Sales per sq.m in stores, SEK thousand 8.0 7.1 32.6 31.7 Number of stores at period end 221 225 221 222 Average number of employees 3,142 3,278 3,093 3,128 Number of Club Clas members 5,104,807 4,467,043 5,104,807 5,025,512 Data per share Number of shares before dilution 63,357,273 63,356,451 63,356,744 63,356,536 Number of shares after dilution 63,357,273 63,358,973 63,356,744 63,357,260 Number of shares at period end 63,357,289 63,356,565 63,357,289 63,356,565 Earnings per share before dilution, SEK -0.42 -0.38 2.81 2.85 Earnings per share after dilution, SEK -0.42 -0.38 2.81 2.85 Comprehensive income per share, SEK -0.80 -0.82 0.62 0.60 Cash flow per share*, SEK 5.18 -0.55 20.58 14.85 Equity per share, SEK 21.91 34.23 21.91 22.69 3 Months 12 Months * From operating activities ===== SIDA 15 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 15 Parent Company Income Statement May 2023 May 2022 Aug 2022 May 2022 MSEK Note - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Sales 1,852.6 1,640.2 7,637.6 7,425.2 Cost of goods sold 1 -1,341.3 -1,253.1 -5,669.6 -5,581.4 Gross profit 511.3 387.2 1,968.0 1,843.8 Selling expenses 1 -342.6 -380.6 -1,453.5 -1,491.5 Administrative expenses 1 -39.5 -38.3 -143.9 -142.7 Other operating income 4.3 4.0 18.8 18.5 Other operating expenses -158.6 -37.2 -295.8 -174.4 Operating profit -25.2 -64.8 93.6 53.9 Dividends from group companies 0.2 0.0 121.8 121.5 Financial income 0.3 0.5 3.1 3.3 Financial expenses -3.3 -1.1 -15.7 -13.4 Profit after financial items -27.9 -65.5 202.8 165.3 Appropriations 0.0 0.0 175.2 175.2 Profit before tax -27.9 -65.5 378.0 340.4 Income tax 5.8 13.6 -56.9 -49.1 Profit for the period -22.1 -51.9 321.1 291.3 3 Months 12 Months Parent Company Comprehensive Income Statement May 2023 May 2022 Aug 2022 May 2022 MSEK - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 -22.1 -51.9 321.1 291.3 - -26.3 -122.3 -148.6 - -26.3 -122.3 -148.6 -22.1 -78.2 198.9 142.7 May 2023 May 2022 Aug 2022 May 2022 - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Depreciations for the period 40.0 49.9 182.5 192.4 3 Months 12 Months Profit for the period Other comprehensive income, net of tax: Other comprehensive income, net of tax Total comprehensive income Note 1 Depreciations 3 Months Items that later can not be reversed back to the Consolidated income statement: Change in fair value of financial assets 12 Months ===== SIDA 16 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 16 Parent Company Balance Sheet 31 Jul 31 Jul 30 Apr MSEK 2023 2022 2023 Assets IT and software costs 134.0 472.2 303.4 Tangible assets 468.5 517.5 483.2 Securities held as fixed assets 9.5 131.7 9.5 Deferred tax assets 3.7 4.1 3.6 Non-current receivables from Group Companies 0.3 0.2 0.2 Other non-current receivables 0.0 2.3 0.0 Participation in Group Companies 45.5 45.5 45.5 Total non-current assets 661.4 1,173.6 845.5 Merchandise 1,591.5 1,937.6 1,599.1 Accounts receivable 20.4 24.6 33.1 Tax assets 31.1 15.2 26.5 Receivables from Group Companies 117.9 36.1 193.7 Other receivables 0.3 1.3 1.1 Prepaid expenses and accrued income 120.7 107.8 89.6 Cash and cash equivalents 30.2 184.2 52.4 Total current assets 1,912.1 2,306.9 1,995.5 Total assets 2,573.5 3,480.5 2,840.9 31 Jul 31 Jul 30 Apr MSEK 2023 2022 2023 Equity and liabilities Share capital, 65,600,000 shares with a quotient value of 1.25 SEK 82.0 82.0 82.0 Statutory reserve 106.8 106.8 106.8 Development fund 11.5 28.2 16.1 Total restricted equity 200.3 217.1 204.9 Profit brought forward 568.7 1,080.5 271.0 Fair value fund -242.9 -120.6 -242.9 Profit for the year -22.1 -51.9 291.3 Total non-restricted equity 303.7 908.0 319.4 Total equity 504.1 1,125.0 524.4 Untaxed reserves 805.5 980.6 805.5 Accounts payable 743.7 815.5 722.8 Tax liabilites 0.0 1.6 0.0 Liabilities to Group companies 27.0 66.4 69.2 Current liabilities, intereset-bearing 23.5 0.0 244.4 Contract liabilities 60.0 57.7 73.1 Other current liabilities 57.9 53.7 65.4 Accrued expenses and prepaid income 351.9 379.8 336.2 Total current liabilites 1,264.0 1,374.8 1,511.1 Total equity and liabilities 2,573.5 3,480.5 2,840.9 ===== SIDA 17 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 17 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 2022/23 Annual Report on page 49. 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 2023 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 2022/23 Annual Report, pages 44-49. ===== SIDA 18 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 18 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 21. The APMs recognised in this quarterly report may differ from similarly named measures used by other companies. May 2023 May 2022 Aug 2022 May 2022 Return on equity - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Net profit for the period, MSEK – – 178.3 180.6 Average equity, MSEK – – 1,517.2 1,699.7 Return on equity – – 11.8% 10.6% 3 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 – – 305.6 305.0 Interest income, MSEK – – 2.9 3.4 Average capital employed, MSEK – – 3,364.1 3,504.3 Return on capital employed – – 9.2% 8.8% 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 836.8 718.3 3,502.2 3,383.6 Sales, MSEK 2,193.1 2,043.6 9,173.9 9,024.3 Gross margin 38.2% 35.1% 38.2% 37.5% 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 2,193.1 2,043.6 9,173.9 9,024.3 Cost of goods sold -1,356.3 -1,325.3 -5,671.7 -5,640.6 Gross profit 836.8 718.3 3,502.2 3,383.6 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 1,388.4 2,168.7 1,388.4 1,437.4 Number of shares at end of period (millions of share) 63.36 63.36 63.36 63.36 Equity per share 21.91 34.23 21.91 22.69 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 -15.5 -16.2 305.6 305.0 Depreciation, amortisation and write-down 335.3 189.9 942.5 797.0 EBITDA 319.8 173.7 1,248.1 1,102.0 Reason for use: Measures the financial performance before depreciation, amortisation, write-down, interest and tax. ===== SIDA 19 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 19 May 2023 May 2022 Aug 2022 May 2022 EBITDA excl IFRS 16, MSEK - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Operating profit excl IFRS 16 -33.1 -36.0 231.3 228.3 Depreciation, amortisation and write-down excl IFRS 16 203.7 63.7 410.6 270.6 EBITDA excl IFRS 16 170.6 27.7 641.9 498.9 Reason for use: Measures the financial performance before depreciation, amortisation, write-down, interest and tax. 3 Months 12 Months Sales growth, MSEK Sales actual period 2,193.1 2,043.6 9,173.9 9,024.3 Sales previous period 2,043.6 2,055.6 8,771.7 8,783.7 Sales growth 7.3% -0.6% 4.6% 2.7% Reason for use: The change in sales reflects the company´s realised sales growth over time. Average inventory value, MSEK Average inventory value – – 2,346.4 2,396.8 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 328.3 -34.6 1,303.7 940.8 Number of shares before the dilution (millions of share) 63.36 63.36 63.36 63.36 Cash flow from operating activities per share 5.18 -0.55 20.58 14.85 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 – – 1,748.4 1,876.8 Cash and cash equivalents – – 108.9 143.1 Total Net debt – – 1,639.6 1,733.7 Reason for use: Net debt shows the company's indebtedness over time. Net debt excl IFRS 16, MSEK Interest bearing liabilities excl lease liabilities – – 23.5 244.4 Cash and cash equivalents – – 108.9 143.1 Total Net debt excl IFRS 16 – – -85.4 101.3 Reason for use: Net debt shows the company's indebtedness over time. Working capital, MSEK Total current assets 2,498.4 2,905.9 2,498.4 2,490.2 -Cash and cash equivalents -108.9 -260.1 -108.9 -143.1 -Current non-interest bearing liabilities -1,727.3 -1,836.3 -1,727.3 -1,619.6 Working capital 662.2 809.5 662.2 727.5 Reason for use: Working capital is used to measure the company’s ability to meet short-term capital requirements. ===== SIDA 20 ===== FINANCIAL STATEMENTS CLAS OHLSON THREE - MONTH REPORT 2023/24 20 May 2023 May 2022 Aug 2022 May 2022 Operating margin - Jul 2023 - Jul 2022 - Jul 2023 - Apr 2023 Operating profit, MSEK -15.5 -16.2 305.6 305.0 Sales, MSEK 2,193.1 2,043.6 9,173.9 9,024.3 Operating margin -0.7% -0.8% 3.3% 3.4% Reason for use: The operating margin shows operating profit as a percentage of net sales and shows operational profitability. 3 Months 12 Months Operating profit excl IFRS 16 Operating profit, MSEK -15.5 -16.2 305.6 305.0 IFRS 16-effect -17.6 -19.9 -74.4 -76.7 Operating profit excl IFRS 16 -33.1 -36.0 231.3 228.3 Reason for use: To create comparability in analyses where years prior to IFRS 16 are included. Equity/assets ratio Total equity, MSEK 1,388.4 2,168.7 1,388.4 1,437.4 Total assets, MSEK 5,028.2 5,924.1 5,028.2 5,109.7 Equity/Assets ratio 27.6% 36.6% 27.6% 28.1% 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 1,493.5 2,289.2 1,493.5 1,540.9 Total assets excl IFRS 16, MSEK 3,408.3 4,333.6 3,408.3 3,580.8 Equity/assets ratio excl IFRS 16 43.8% 52.8% 43.8% 43.0% 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 5,028.2 5,924.1 5,028.2 5,109.7 Long-term non-interest bearing liabilities -164.0 -208.1 -164.0 -175.9 Current non-interest bearing liabilities -1,727.3 -1,836.3 -1,727.3 -1,619.6 Capital employed 3,136.9 3,879.8 3,136.9 3,314.1 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 -50.6 -52.3 39.5 37.9 Average number of shares before dilution (millions of share) 63.36 63.36 63.36 63.36 Comprehensive income per share -0.80 -0.82 0.62 0.60 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 -26.4 -24.1 178.3 180.6 Number of shares before dilution (millions of share) 63.36 63.36 63.36 63.36 Number of shares after dilution (millions of share) 63.36 63.36 63.36 63.36 Number of shares before dilution -0.42 -0.38 2.81 2.85 Number of shares after dilution -0.42 -0.38 2.81 2.85 *Defined in accordance with IFRS ===== SIDA 21 ===== KEY RATIO DEFINITIONS CLAS OHLSON THREE - MONTH REPORT 2023/24 21 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, amortisation and write-down. EBITDA excl IFRS 16 Operating profit/loss before interest, tax, depreciation, amortisation and write-down 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. 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). 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. ===== SIDA 22 ===== GLOSSARY CLAS OHLSON THREE - MONTH REPORT 2023/24 22 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. Glossary Club Clas Clas Ohlson’s loyalty programme. 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. 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. Comparable units Units that have been in operation during the current period and the entire year-earlier period. ===== SIDA 23 ===== THE SHARE CLAS OHLSON THREE - MONTH REPORT 2023/24 23 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 July 2023, the share price was SEK 85.75 and the total market capitalisation amounted to 5,433 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 July 2023, the company held 2,242,711 shares (2,243,435) 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 63,357,289 (63,356,565). 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 Board of Directors proposes that a dividend of 1.50 SEK per share be paid for the 2022/23 financial year. It is proposed that payment be made in September. Owner CLAS A CLAS B Capital Votes Haid family 3,023,880 12,029,103 22.9% 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 1,412,463 2.2% 1.2% Norges Bank 957,145 1.5% 0.8% Dimensional Fund Advisors 797,913 1.2% 0.7% SHB Fonder & Liv 793,395 1.2% 0.7% Fidelity International (FIL) 728,029 1.1% 0.6% BlackRock 644,988 1.0% 0.5% Acadian Asset Management 596,749 0.9% 0.5% American Century Investment Management 490,781 0.7% 0.4% SEB Fonder & Liv 468,002 0.7% 0.4% Nordnet Pensionsförsäkring 444,992 0.7% 0.4% Avanza Pension 356,175 0.5% 0.3% Total top 15 5,760,000 34,510,271 61.4% 78.4% Other shareholders 25,329,729 38.6% 21.6% Total 5,760,000 59,840,000 100.0% 100.0% Shares owned by Clas Ohlson 2,242,711 3.4% 1.9% The largest shareholders per 31 July 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 2022/23 2023/24 0. 00 1. 00 2. 00 3. 00 4. 00 5. 00 6. 00 7. 00 *Ordinary dividend **Extra dividend ***Proposed dividend ===== SIDA 24 ===== CLAS OHLSON IN BRIEF CLAS OHLSON THREE - MONTH REPORT 2023/24 24 Clas Ohlson in brief Clas Ohlson’s overall purpose is to make home fixing available, sustainable and enjoyable for everyone. The company was founded in 1918 as a mail order business based in Insjön, Dalarna, Sweden. Today, we are one of Nordic countries’ strongest retail brands with customers in three markets, with over 5 million members of Club Clas, approximately 5,000 co- workers, and sales of approximately 9 billion SEK. The Clas Ohlson series B share has been listed on Nasdaq Stockholm since 1999. Read more about how we help people fix their homes with practical and sustainable solutions at attractive prices at about.clasohlson.com/en/ 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. On the reporting date, the number of contracted forthcoming store openings was 9, and the total number of stores was 221 (225). Openings/closings Q1 2023/24 • Norway, Fredrikstad Torvbyen, closed 2 June 2023 Events after the end of the reporting period • Sweden, Kalmar Baronen, closed 11 August 2023 • Norway, Kristiansand, new store opened 24 August 2023 • Sweden, Stockholm Västermalmsgallerian, scheduled to open in November 2023 • Norway, Notodden, scheduled to open in November 2023 • Norway, Kolbotn, scheduled to open in November 2023 • Norway, Oslo Nygata, scheduled to open in March 2024 • Sweden, Halmstad Hallarna, scheduled to open in March 2024 • Sweden, Sundsvall city, scheduled to open in March 2024 • Sweden, Malmö Kronprinsen, scheduled to open in April 2024 • Sweden, Falkenberg, scheduled to open in April 2024 • Finland, Oulu Kaakkuri, scheduled to open in May 2024 Strategic focus areas • Relevant assortment all year around • A growing and profitable online business • Expand the store network • Efficient customer communication • A competitive cost base • Execution on our sustainability agenda Financial targets/framework • Sales are to increase organically by 5 per cent per year • The operating margin is to amount to between 7-9 per cent per year • 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, excluding the effect of IFRS 16, to be below two (2) times. Investments are to be made with regards to the company’s financial position, cash flow and strategic activities Sustainability targets • The Planet: Climate neutral and fully circular by 2045 – own operations to be climate neutral by 2026. Joined the Science Based Targets initiative. • People: A sustainable and long-term employer with happy co-workers • Society: Contributing to a fair and prosperous society for future generations Financial calendar 8 September 2023 Annual General Meeting 6 December 2023 Six-month Report 2023/24 6 March 2024 Nine-month Report 2023/24 5 June 2024 Year-end Report 2023/24 4 September 2024 Three-month Report 2024/25 4 December 2024 Six-month Report 2024/25