===== SIDA 1 ===== INTERIM REPORT JANUARY – MARCH 2023 ===== SIDA 2 ===== INTERIM REPORT JANUARY – MARCH 2023 Humble Group AB Interim Report January – March 2023 Stockholm, 4 May 2023 INTENSE FIRST QUARTER WITH FOCUS ON OPERATIONS Financial information First quarter • Net sales amounted to 1 592 MSEK (873). • EBITDA amounted to 156 MSEK (64). • Adjusted EBITDA amounted to 147 MSEK (113). • EBITA amounted to 130 MSEK (47). • Adjusted EBITA amounted to 121 MSEK (95). • EBIT amounted to 85 MSEK (14). • Adjusted EBIT amounted to 76 MSEK (62). • Adjusted EBIT per share amounted to 0,25 SEK (0,25). • Cash flow from operating activities amounted to 183 MSEK (9). • Earnings per share before and after dilution amounted to -0,01 SEK (-0,12). Significant events During the first quarter • Humble Group has completed the acquisitions of Privab Ystad, Privab Trollhättan, Privab Grossisterna AB and Napame Holding AB. After the quarter • Humble Group has given notice of the annual general meeting to be held on Friday May 19, 2023. • Peter Werme, chairman of the board, has informed the nomination committee that he is not available for re- election as either board member or chairman of the board at the annual general meeting 2023. Financial overview Last Twelve M onths Full year MSEK 2023 2022 Apr 2022 - Mar 2023 2022 Net sales 1 592 873 5 520 4 800 Gross profit 484 297 1 72 0 1 532 Gross margin 30% 34% 3 1% 32% EBITDA 15 6 64 596 504 Adjusted EBITDA 14 7 113 586 551 EBITA 13 0 47 502 4 19 Adjusted EBITA 12 1 95 492 466 EBIT 85 14 328 257 Adjusted EBIT 76 62 3 18 304 Adjusted EBIT per share before dilution (SEK) 0,25 0,25 1,0 7 1,0 7 Earnings per share before and after dilution (SEK) -0,01 - 0 ,12 -0,03 - 0 ,13 Cash flow from operating activities 18 3 9 429 255 See page 21 for definition and calculation of key ratios First quarter Humble Group is a leading FMCG Group comprising 47+ entrepreneurial driven entities, with focus on health and well-being in a sustainable way ===== SIDA 3 ===== | SUMMARY Humble Group AB Interim Report January – March 2023 3 INTENSE FIRST QUARTER WITH FOCUS ON OPERATIONS Seasonally, the first quarter is the weakest for our operations. Nevertheless, we have had a good start to the year and we have begun to see the effects of our work to improve operational efficiency in the group. We have continued to have high demand for our products and have maintained strong organic growth. We reached a net turnover of SEK 1,592 million (SEK 873 million) and an adjusted EBITDA of SEK 147 million (SEK 113 million), which corresponds to a margin of 9.2 percent. Although some of the companies have had some challenges in adapting to the tough market environment with high inflation and volatility, I am pleased with several of the group-wide initiatives that we have put in place to support our entrepreneurs. We are already starting to see the results from the work to improve cash flow and we will continue to prioritize actions that contribute to strengthening our liquidity and balance sheet. All in all, I have a positive view of 2023 and the opportunities that exist by growing the group with our attractive brands, innovations, and products. Operational focus During the quarter, we continued with the strategically important work of defending and strengthening our gross profit margins. We still have a way to go in order to reach the historically normal levels from before the shipping and inflation crisis. At the same time, I am convinced that the work we are doing will benefit us going forward and that with the right activities we have good possibilities to reach an even higher profitability margin than what has been standard for our companies in previous years. Our objective is to optimize the group's working capital structure in order to convert the group's profit generation and assets into cash flow more quickly. It is of course challenging to reduce the working capital with the strong growth that many of our businesses have, but in the long term we should be able to reduce our inventory levels and become more efficient in the dynamics between accounts receivable and accounts payable. The work to realize synergies within the operating segments continues. Quality Nutrition and Future Snacking have developed well during the quarter and we see great potential in acting on exciting business opportunities within both segments. One of the initiatives within Quality Nutrition, which we call Arena Nutrition, involves gathering the segment's commercial expertise under one and the same umbrella. In this way, it will be easier to attract new customers and offer an overall solution as a full-service supplier in sports nutrition. We are already starting to see the effect of the initiative and I am convinced that it is a model that we will be able to use in other areas of the group. Within Future Snacking, we have carried out several successful launches. Pändy is the latest example in the group, whose sugar- reduced sweets have received strong listings in Sweden and rank high in the top lists of online pharmacies. It is proof that the concepts work and are gaining wider acceptance among modern consumers. During the quarter, we completed the acquisition of a production property in Borås, which enables La Praline Scandinavia to keep long- term production within the group. We are today the owner of 15 properties that our manufacturing units produce in. Through a possible divestment of such properties, we have the flexibility to refine the group's focus and strengthen the balance sheet going forward if we desire to. The Sustainable Care segment has performed a stable quarter with continued growth in most of the subsidiaries. In some of the companies that offer premium products, we have noticed to some extent price sensitivity among the consumers. In general, however, we have managed to handle the challenges well through, among other things, strategic price and packaging adjustments. We continuously evaluate how we can strengthen the product offering and supplement with white-label and price fighters to create an attractive overall mix for our retailers. For the Nordic Distribution segment, we have noted a certain margin pressure, where the transfer of increased input prices has not been executed at the desired rate. We work continuously to ensure long- term sustainable gross margins. The segment has performed very well historically and I feel confident that we will be successful in regaining the margin in the long term. We have several exciting ongoing synergy projects where we see an opportunity to consolidate sales force and centralize resources for increased efficiency. During the quarter, we completed the previously communicated strategic acquisitions of the Privab companies and we are now fully focusing on developing the cooperation between the various units. We are also reviewing how we can further develop the group's distribution and channel strategy from a strategic perspective to become a comprehensive partner for both our internal and external brands. The goal is for us to be the preferred partner for brands to collaborate with in order to achieve successful distribution in the Nordics. Outlook Consolidation of the operations is proceeding according to plan. With the slower pace of acquisitions, we can dedicate additional resources to optimize value creation for all our companies. In general, we have noted a change in behaviour among some of our suppliers in recent weeks, where many of the price increases that characterized the entire 2022 are now conspicuous by their absence. To the contrary, we see potential for a reverse development in the market with reduced purchase prices. This would mean that we can maintain a stable price position with our customers and at the same time be able to strengthen profitability going forward. The work on the list change is progressing well and we have several exciting projects at group level to further enhance our sustainability development and follow-up. The challenging market climate is of course difficult to navigate, but we continue to work intensively towards our goal of growing Humble into the FMCG group of the future. Simon Petrén CEO Humble Group Stockholm, May 4, 2023. ===== SIDA 4 ===== | CONSOLIDATED DEVELOPMENT Humble Group AB Interim Report January – March 2023 3 HUMBLE GROUP’S FINANCIAL DEVELOPMENT FIRST QUARTER REVENUES Net sales Net sales for the quarter amounted to 1 592 MSEK (873), an increase of 82 % compared to the corresponding period last year. The change is attributable to completed business acquisitions of 67 %, organic growth for the wholly owned companies in both periods of 14 % and currency impact was 2 %. Net sales proforma increased with 21 %, where organic growth proforma amounted to 20 % and currency impact was 1 %. EXPENSES Other external expenses Other external expenses for the quarter amounted to -208 MSEK (-114), which corresponded to 13 % (13) of net sales. Other external expenses were positively impacted by IFRS 16 Leasing with MSEK 15. Acquisition related costs for the quarter amounted to -3 MSEK (-0). Personnel expenses Personnel expenses for the quarter amounted to -183 MSEK were (-141), which corresponded to 11 % (16) of net sales. Personnel expenses was negatively impacted by employment-linked consideration (stay-on-bonuses and lock-in penalties) of -12 MSEK (-38). Remaining increase is mainly explained by additional employees in the Group through the acquired subsidiaries. For more details, please refer to Note 5 Items affecting comparability. Depreciation and amortisation Total depreciation and amortisation for the quarter amounted to - 71 MSEK (-50), which corresponded to a change of 42 % compared with the corresponding period last year. Depreciation of right-of- use assets amounted to -14 MSEK (-10) for the quarter. Amortisation of intangible assets related from acquisitions, whereof vast majority related to customer relations, amounted to -36 MSEK (-28). RESULTS EBITA EBITA for the quarter amounted to 130 MSEK (47), which corresponded to a change of MSEK 83 compared with the corresponding period last year. The impact on EBITA from depreciation of right-of-use assets amounted to -14 MSEK (-10). EBITA was also positively impacted by revaluation of contingent considerations of total 31 MSEK (1). Adjusted EBITA amounted to 121 MSEK (95). For more details, please refer to Note 5 Items affecting comparability. EBIT EBIT for the quarter amounted to 85 MSEK (14), which corresponded to a change of 508 % compared with the corresponding period last year. Net effect from IFRS 16 Leasing to EBIT for the quarter amounted to 1 MSEK (1). CASH FLOW Cash flow from operating activities Cash flow from operating activities amounted to 183 MSEK (9). Cash flow from operations was positively impacted by net working capital release of 82 MSEK (-60). The Group has during the quarter continued the work with several strategic initiatives to optimize the net working capital usage going forward. FINANCIAL POSITION Financial expenses Interest expenses for the period amounted to -84 MSEK (-51). Of the total interest expenses, -52 MSEK (-33 MSEK) is related to bond financing. Interest expense related to unwinding of discounting effect of contingent considerations presented at fair value amounted to -18 MSEK (3). Such interest expense has no cash effect in the quarterly result. CHANGE IN NET SALES MSEK 2023 2022 Organic Growth Currency Acquisitions Total change Consolidated net sales 1 592 873 118 14 587 719 Change in % 14 % 2% 67% 82% Proforma net sales (all companies) 1 828 1 508 299 21 - 320 Change in % 20% 1% - 2 1% First quarter whereof change attributable to ===== SIDA 5 ===== | SEGMENT INFORMATION Humble Group AB Interim Report January – March 2023 5 SEGMENT REPORT - FUTURE SNACKING SEGMENT OVERVIEW Future Snacking strives to offer cutting edge, healthier and sustainable food & snacking products that challenge traditional foods and snacks. Our Future Snacking companies are driven by the passion for innovative concepts and aim to contribute to a more sustainable consumer society where health and well-being is at the centre without compromising taste, quality or feel. Humble Groups functional food and “Better-for-you” products include sugar- and calorie reduced, vegan and vitamin enriched products that benefit the consumer. Global megatrends with shifting demographics, changing lifestyles, the food industry environmental impact, politics and digitalisation drive the shift in consumer awareness and behaviours. Humble Groups mission is clear, to become the frontrunner in delivering high-quality food & snacking products that align with the future consumers demands. SALES AND PROFITABILITY Net sales for the Future Snacking segment amounted to 238 MSEK (148) during the quarter, a total increase of 61 % compared to the corresponding period last year. The growth among the brands in the segment was mainly driven by new product launches and innovations as well as continued international and domestic expansion of existing brands. True Gum had a strong organic growth and gained market positions through new listings at major retailers in Germany. Moreover, the brands have gained stronger distribution with retailers thanks to partnership with the Nordic Distribution segment. The production companies have continued to expand their product offering with their own brands and via additional contract manufacturing to external parties. EBITDA for the quarter amounted to 23 MSEK (10), with an EBITDA margin of 9 % (7). For further financial information of the Group, refer to Note 4 Segment information and disclosure of revenue. Companies included in the segment can be found in Note 31 in the Annual report 2022 and in Note 8 Business combination in this interim report. MSEK 2023 2022 Net sales 238 14 8 Raw material and consumables - 13 6 - 77 Gross profit 10 2 71 Gross margin 43% 48% EBITDA 23 10 EBITDA in relation to net sales 9% 7% EBIT 6 -1 EBIT in relation to net sales 3% 0% PROFIT AND LOSS AFTER FINANCIAL ITEM S 4 -3 Profit and loss after financial items in relation to net sales 2% - 2% First quarter ===== SIDA 6 ===== | SEGMENT INFORMATION Humble Group AB Interim Report January – March 2023 6 SEGMENT REPORT - SUSTAINABLE CARE SEGMENT OVERVIEW Sustainable Care consists of a diverse range of brands, distributors and producers of personal-care and household products. Their categories encompass skincare, oral care, haircare as well as hygiene products, among others. The companies in the segment are committed to meet the growing demand for sustainable and eco-friendly products and by doing so, contribute to an environmentally sound planet. SALES AND PROFITABILITY Net sales for the Sustainable Care segment amounted to 484 MSEK (396) during the quarter, a total increase of 22 % compared to the corresponding period last year. The growth among the brands was mainly line extensions and improved distribution in existing markets. Some of the brands have started to gain additional distribution through partnering with subsidiaries in the Nordic Distribution segments, where the full potential is far from materialised. The production companies have expanded their product offering with new innovations and where several investments have been made to secure additional growth and production capabilities. Solent continued to show a stable organic growth driven by new listings and new customer acquisitions. In general, we note an increased price sensitivity for companies with greater exposure to premium priced products, although profitability has been maintained through strategical pricing- and packaging adjustments. We are continuously evaluating how the product offering can be tailored with additional white label products and price fighters to create an attractive product portfolio mix. EBITDA for the quarter amounted to 65 MSEK (33), with an EBITDA margin of 13 % (8), which was negatively impacted by high freight prices from Asia, weak SEK and GBP, restructuring cost related to the Naty factory move, as well as raw material volatility. For further financial information of the Group, refer to Note 4 Segment information and disclosure of revenue. Companies included in the segment can be found in Note 31 in the Annual report 2022 and in Note 8 Business combination in this interim report. MSEK 2023 2022 Net sales 484 396 Raw material and consumables - 3 17 -244 Gross profit 16 7 15 3 Gross margin 34% 39% EBITDA 65 33 EBITDA in relation to net sales 13 % 8% EBIT 33 4 EBIT in relation to net sales 7% 1% PROFIT AND LOSS AFTER FINANCIAL ITEM S 32 -8 Profit and loss after financial items in relation to net sales 7% - 2% First quarter ===== SIDA 7 ===== | SEGMENT INFORMATION Humble Group AB Interim Report January – March 2023 7 SEGMENT REPORT - QUALITY NUTRITION SEGMENT OVERVIEW Quality Nutrition comprises has both brands and manufacturers of sports nutrition and ingredients. These subsidiaries are devoted to providing top-quality nutrition products and supplements that are designed to help both athletes and ordinary consumers increase performance and health in their daily lives. With the help of their research and development functions they create continuously improved products while maintaining a strong focus on sustainability. The Quality and Nutrition segment is poised to take advantage of the growing demand for sport nutrition products, while contributing to a healthier and more sustainable future. SALES AND PROFITABILITY Net sales for the Quality Nutrition Care segment amounted to 345 MSEK (134) during the quarter, an increase of 157 % compared to the corresponding period last year. The growth among the brands is mainly attributed to BodyScience, which has had a fantastic start from becoming part of the Group in August 2022. The company has grown significantly through new innovations, additional channel segments and higher distribution. The other brands in the segments have sustained strong growth through additional distribution and launches of new products as well as cooperation with the Nordic Distribution segment. The production facilities have been gathered in a group initiative “Arena Nutrition” where we on a group level are able to supply our biggest customers with a full range assortment of high quality and well tasting products. With Ewalco taking on the leading flag, we believe it will be a driver of organic growth in the coming years. EBITDA for the quarter amounted to 55 MSEK (17), with an EBITDA margin of 16 % (13). The profitability was slightly negatively affected by an increased market price volatility for some raw materials and ingredients. Even though we expect a drop in sales prices in some products going forward, the volatility in market prices enables Humble to maintain some margin before the full decrease have been transformed in the value chain. For further financial information of the Group, refer to Note 4 Segment information and disclosure of revenue. Companies included in the segment can be found in Note 31 in the Annual report 2022 and in Note 8 Business combination in this interim report. MSEK 2023 2022 Net sales 345 13 4 Raw material and consumables -253 -97 Gross profit 91 36 Gross margin 26% 27% EBITDA 55 17 EBITDA in relation to net sales 16 % 13 % EBIT 42 12 EBIT in relation to net sales 12 % 9% PROFIT AND LOSS AFTER FINANCIAL ITEM S 41 12 Profit and loss after financial items in relation to net sales 12 % 9% First quarter ===== SIDA 8 ===== | SEGMENT INFORMATION Humble Group AB Interim Report January – March 2023 8 SEGMENT REPORT - NORDIC DISTRIBUTION SEGMENT OVERVIEW Since the inception of Humble Groups journey, the core strategy has been to cover the full value chain including distribution. The Nordic Distribution segment encompasses a network of wholesalers and distributors located in the Nordic region. The companies within Nordic Distribution have a deep understanding of local markets and consumer preferences. By leveraging the strengths of these local partners, Humble Group can offer a comprehensive range of FMCG products that cater to the diverse preferences in the Nordic region. SALES AND PROFITABILITY Net sales for the Nordic Distribution segment amounted to 526 MSEK (195) during the quarter, an increase of 170 % compared to the corresponding period last year. The growth can be seen in all of the companies across the segment, increasing volume and adding new products to the stores and channels. Additionally, many of the subsidiaries have incorporated the portfolio of other Humble subsidiary brands, driving additional growth via group synergies. The EBITDA-margin has been lowering in many of the companies due to high price volatility and freight prices, which has but pressure on the profitability. The companies see strong potential to recover the margin in the coming years to normalized levels pre-2022. EBITDA for the quarter amounted to 22 MSEK (12), with an EBITDA margin of 4 % (6), which was slightly negatively affected by a margin pressure due to some delay in the transferring of increased purchase prices to customers. For further financial information of the Group, refer to Note 4 Segment information and disclosure of revenue. Companies included in the segment can be found in Note 31 in the Annual report 2022 and in Note 8 Business combination in this interim report. MSEK 2023 2022 Net sales 526 19 5 Raw material and consumables -402 - 15 9 Gross profit 12 4 36 Gross margin 24% 19 % EBITDA 22 12 EBITDA in relation to net sales 4% 6% EBIT 14 7 EBIT in relation to net sales 3% 4% PROFIT AND LOSS AFTER FINANCIAL ITEM S 11 7 Profit and loss after financial items in relation to net sales 2% 3% First quarter ===== SIDA 9 ===== | OTHER INFORMATION Humble Group AB Interim Report January – March 2023 9 OTHER INFORMATION ABOUT HUMBLE GROUP Humble Group is a leading FMCG Group with a focus on health and well-being. The Group comprises 47 operating entities at the day of this report. Humble Group has set financial targets that the Group shall reach 16 billion SEK in net sales proforma and 1.9 billion SEK in Adjusted EBITA proforma by the end of 2025. The company has an organic growth target at minimum 15% year over year and a NIBD / Adjusted EBITDA proforma below 2.5x. Read more about the Group and its composition on www.humblegroup.se STAFF AND NUMBER OF EMPLOYEES On Group level At the end of the reporting period, the number of employees in the Group was 1 067 (665). The number of full-time positions (FTE) corresponded to 1 053 (620) employees for the period. The proportion of women in the Group for the quarter was 49 % (47 %). Parent company The average number of employees in the Parent Company during the first quarter was 20 (24), with 26 % (25 %) being women. RISKS AND UNCERTAINTIES Humble Group works continuously to identify, evaluate, and manage risks and exposures that the Group companies face. The Group's financial position and earnings are affected by various risk factors that must be considered when assessing the company and its future earnings. A description of significant risks and uncertainties can be found in the Annual Report for 2022. There has been no material change in material risks and uncertainties since the annual report was published. PARENT COMPANY During the first quarter, the parent company fulfilled the acquisition of Napame Holding AB, Aktiebolaget Cool & Candy AB, Skövde Snabbgross AB and Privab Grossisterna AB. No other significant events have occurred during the first quarter. BUSINESS MARKET CONDITION UPDATE Humble Group does not have any exposures towards neither Russia nor Ukraine, and as such do not note any direct effects from the ongoing war. Even though it is difficult to quantify the exact effects, Humble notices the indirect effects from the war driven by rapidly increased inflation and market interests’ rates with a following change in consumer consumption patterns. Humble monitor the market development closely to ensure we position our product mix in best possible way to meet any potential changes in market or consumer behaviour. Further on, the increased market price volatility regarding raw material prices are monitored closely to enable transition of price increases to customers in all material aspects and to a protect stable operating margins. RELATED PARTY TRANSACTION No transactions with related parties have occurred during 2023 that had a significant impact. The minor transactions that have occurred relates to lease agreements of previous owners’ properties. Lease agreements between the parties are based on an arms length’s perspective and on market terms and conditions. FINANCIAL CALENDAR The interim report for the period April-June 2023 will be published on July 25, 2023. For financial reports and calendar, see more detailed information on our website www.humblegroup.se CERTIFIED ADVISOR FNCA Sweden AB Email: info@fnca.se AUDITORS BDO Mälardalen Auditor in Charge: Carl-Johan Kjellman, Authorised Public Accountant Email: carl-johan.kjellman@bdo.se ===== SIDA 10 ===== | THE SHARE Humble Group AB Interim Report January – March 2023 10 THE SHARE THE SHARE The company’s share with ticker HUMBLE has been listed on Nasdaq First North Growth Market since 12 November 2014. NUMBER OF SHARES At the end of the reporting period, the total number of shares was 306 550 555 (250 822 124), which entitles to one vote each. All shares are of the same share class. The number of outstanding warrants amounted to 3 320 000. For the period January - Mars 2023, the average number of shares before dilution and average number of shares after dilution amounted to 302 212 531 and 305 532 531 respectively. TRADE IN THE SHARE First quarter The total liquidity in the share during the first quarter amounted to 569 MSEK (1 845). The number of transactions for the same period amounted to 60 113 (117 246). The average volume per transaction amounted to 9 457 SEK (15 736). The average volume per trading day amounted to 9 MSEK (29). LARGEST SHAREHOLDERS The ten largest shareholders per Mars 31, 2023, are listed below: DATA PER SHARE An overview of share development, turnover and result per share is presented below. Owner Shares V otes Håkan Roos (RoosGruppen AB) 30 983 300 10 ,11% Noel Abdayem (NCPA Holding AB) 27 91 7 627 9 ,11% Neudi & C:o AB 1 8 908 001 6 ,17% Avanza Pension 1 6 81 5 794 5, 49% Thomas Petrén (Seved Invest AB) 1 2 570 000 4, 1 0% Capital Group 1 1 368 627 3 ,71% Futur Pension 7 51 3 372 2, 45% Creades AB 7 026 870 2, 29% Caldas Capital 6 572 1 29 2, 1 4% Simon Petrén 6 21 6 200 2, 03% Total top 10 1 45 891 920 47 ,59% Other shareholders 1 60 658 635 52, 41 % Total number of shares 306 550 555 1 00% Full year 2023 2022 2022 Low price (SEK) 6 ,11 1 6,00 9,01 High price (SEK) 11,4 5 28,85 28,85 Closing price previous period (SEK) 9,77 28,00 28,00 Closing price current period (SEK) 6,71 1 8,80 9,77 Share price development during period (%) - 3 1% -33% - 67% Trading volume in the share (MSEK) 569 1 845 4 223 Number of transactions in the share 6 0 113 117 2 4 6 347 1 33 Average volume per trading day (MSEK) 8,9 29,3 16 ,7 Average volume per transaction (SEK) 9 457 1 5 736 12 16 6 Number of shareholders* 23 743 23 746 24 080 Number of shares outstanding* 306 550 555 250 822 1 24 301 274 580 Average number of shares before dilution 302 21 2 531 249 950 502 284 1 51 901 Average number of shares after dilution 305 532 531 251 436 21 8 286 81 8 625 Net sales per share** 5,27 3,49 17,5 1 EBITDA per share** 0,52 0,26 1,5 3 Adjusted EBITDA per share** 0,49 0,45 1,70 EBIT per share** 0,28 0,06 0,94 Adjusted EBIT per share** 0,25 0,25 1,0 7 Earnings per share -0,01 - 0 ,12 - 0 ,13 * End of period, ** SEK before dilution First quarter ===== SIDA 11 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 11 GROUP INCOME STATEMENT Last Twelve M onths Full year Amount in MSEK N ote 2023 2022 Apr 2022 - Mar 2023 2022 Net sales 1 592 8 73 5 520 4 800 Capitalised work on own account 20 17 88 85 Other operating income 81 18 322 259 Raw materials and consumables - 1 10 8 - 576 -3 800 -3 268 Other external expenses -208 - 114 - 737 -644 Personnel expenses - 18 3 - 14 1 -667 -625 Other operating expenses -39 - 12 - 13 0 - 10 3 EBITDA 15 6 64 596 504 Items affecting comparability 5 -9 48 - 10 47 ADJ USTED EBITDA 14 7 113 586 551 Depreciation of tangible fixed assets - 12 -8 -41 -37 Depreciation of right-of-use assets - 14 - 10 -53 -48 EBITA 13 0 47 502 4 19 ADJ USTED EBITA 12 1 95 492 466 Amortization of intangible fixed assets -9 -5 -39 -35 Amortisation of fixed assets related to acquisitions -36 -28 - 13 5 - 12 8 EBIT 85 14 328 257 ADJ USTED EBIT 76 62 3 18 304 Profit from shares in associated companies 0 -2 -3 -4 Financial income 2 7 9 14 Financial expenses -84 -51 -298 -265 PROFIT AND LOSS AFTER FINANCIAL ITEM S 3 -32 36 1 Income tax -6 2 -45 -37 PROFIT AND LOSS AFTER TAX* -3 -30 -9 -36 Other comprehensive income Items that may be reclassified to profit or loss: Exchange differences in translation of foreign operations 35 7 16 2 13 5 COMPREHENSIVE INCOME FOR PERIOD* 31 -23 15 3 99 Earnings per share before dilution -0,01 - 0 ,12 -0,02 - 0 ,13 Earnings per share after dilution -0,01 - 0 ,12 -0,02 - 0 ,13 *Profit and loss after tax and Total Comprehensive Income for the period are attributable in their entirety to the shareholdes of the parent company First quarter ===== SIDA 12 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 12 GROUP BALANCE SHEET - IN SUMMARY Full year Amount in MSEK Note 2023 2022 2022 ASSETS Fixed assets Intangible assets 6 093 4 885 5 995 Tangible fixed assets 406 250 372 Financial assets 71 56 75 Total fixed assets 6 570 5 1 91 6 441 Right-of-use assets 14 0 10 3 15 1 Deferred tax assets 27 49 26 Current assets Inventory 1 031 596 982 Accounts receivables 644 453 683 Other short-term receivables 239 177 234 Cash and cash equivalents 440 262 380 Total current assets 2 354 1 488 2 279 TOTAL ASSETS 9 091 6 832 8 897 EQUITY AND LIABILITIES Equity Share capital 67 55 66 Unregistered share capital 0 0 0 Other equity contributed 4 1 69 3 347 4 1 31 Retained earnings - 12 9 -283 - 16 1 Total shareholders equity 4 1 07 3 119 4 036 Long-term liabilities Interest-bearing liabilities 9 1 9 16 1 712 1 9 16 Contingent considerations 9 407 654 433 Long-term lease liabilities 97 65 10 0 Deferred tax liabilities 5 10 409 502 Other long-term liabilities 117 65 79 Total long-term liabilities 3 047 2 905 3 029 Short-term liabilities Interest-bearing liabilities 9 678 203 621 Contingent considerations 9 384 45 347 Current lease liabilities 47 37 49 Accounts payable 607 351 550 Other current liabilities 221 171 265 Total short-term liabilities 1 937 807 1 832 TOTAL EQUITY AND LIABILITIES 9 091 6 832 8 897 March, 31 ===== SIDA 13 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Amount in MSEK Share capital Unregistered share capital Other equity contributed Exchange rate d ifferences Retained Earnings Total shareholders e quity Opening balance J anuary 1 , 2022 54 1 3 31 5 43 -302 3 110 Net income for period -30 -30 Other comprehensive income 7 7 Total comprehensive income 0 0 0 7 -30 -23 Transaction with owners in their capacity as owners: Share issue 1 -1 32 32 Ongoing share issue 0 Transaction costs -1 -1 Share-based benefits 1 1 Total transaction with owners in their capacity as owners 1 -1 31 0 0 32 Ending balance March 31 , 2022 55 0 3 347 49 - 332 3 119 Opening balance J anuary 1 , 2023 66 0 4 1 31 177 -338 4 036 Net income for period -3 -3 Other comprehensive income 35 35 Total comprehensive income 0 0 0 35 -3 31 Transaction with owners in their capacity as owners: Share issue 1 36 37 Ongoing share issue 0 Transaction costs 3 3 Share-based benefits -1 -1 Total transaction with owners in their capacity as owners 1 0 38 0 0 39 Ending balance March 31 , 2023 67 0 4 1 69 2 12 -341 4 1 07 ===== SIDA 14 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 15 GROUP CASH-FLOW STATEMENT Full year Amount in MSEK 2023 2022 2022 O PERATING ACTIVITIES Profit and loss after financial items 3 -32 1 Adjustement for non-cash items Depreciation and Amortisation 71 50 247 Other items 34 55 15 5 Paid tax -7 -5 -33 Cash flow from operating activities before change in net working capital 10 1 69 3 71 CHANGE IN WORKING CAPITAL Change in inventories (increase - / decrease + ) - 11 - 74 - 10 1 Change in short term receivables (increase - / decrease + ) 80 32 74 Change in short term liabilities (increase - / decrease + ) 14 - 18 -88 Sum of change in working capital 82 -60 - 116 Cash flow from operating activities* 18 3 9 255 INVESTING ACTIVITIES Acquisition of capitalised development costs -20 - 17 -84 Acquisition of intangible assets 0 0 -6 Acquisition of tangible assets - 13 - 10 -57 Consideration paid, net of acquired cash* -63 - 12 2 -901 Cash flow from investing activities -96 - 14 9 -1 048 FINANCING ACTIVITIES Share issue funds 0 0 530 Costs related to share and bond issues 0 0 - 12 Paid premium for share incentive program 0 0 2 Proceeds from bond 0 0 300 Paid interest -58 -40 - 15 4 New loans 46 13 1 769 Amortization of loans -4 - 10 1 -629 Amortization of lease liability - 14 - 10 -52 Cash flow from financing activities -30 -20 753 Decrease/ Increase in cash and cash equivalents 57 - 16 0 -41 Cash and cash equivalents at beginning of period 380 420 420 Exchange rate differences 3 2 -1 Cash and cash equivalents at end of period 440 262 380 *Include paid empoyee-related compensation of 76 MSEK paid in March 2022. First quarter ===== SIDA 15 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 16 INCOME STATEMENT - PARENT COMPANY Last Twelve M onths Full year Amount in MSEK 2023 2022 Apr 2022 - Mar 2023 2022 Net sales 1 1 20 21 Other operating income 3 0 4 1 Total revenue 4 1 24 22 Capitalised work on own account 0 2 6 9 Other external expenses -3 -3 -20 -20 Personnel expenses - 10 -9 -50 -48 Other operating expenses 0 0 -1 -1 EBITDA - 10 -8 -40 -38 Depreciation and amortisation of fixed tangible and intangible assets 0 0 0 0 OPERATING PROFIT (EBIT) - 10 -8 -40 -38 Profit from shares in subsidiaries and associated companies 0 0 0 0 Interest income 1 4 10 13 Interest expenses - 75 -33 - 272 -230 PROFIT AND LOSS AFTER FINANCIAL ITEM S -84 -38 -302 -256 Received dividends from subsidiaries 0 0 52 52 Year-end appropriations 0 0 10 0 10 0 PROFIT AND LOSS BEFORE TAX -84 -38 - 15 0 - 10 4 Current taxes 0 0 - 16 - 16 PROFIT AND LOSS AFTER TAX -84 -38 - 16 7 - 12 0 In the parent company, there are no items that are reported as other comprehensive income, which is why total comprehensive income corresponds to the year's result. First quarter ===== SIDA 16 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 17 PARENT COMPANY BALANCE SHEET – IN SUMMARY Full year Amount in MSEK 2023 2022 2022 ASSETS Fixed assets Intangible fixed assets 1 1 1 Tangible fixed assets 1 1 1 Financial fixed assets 6 967 5 499 6 920 Total fixed assets 6 969 5 500 6 922 Current assets Inventory 0 0 0 Accounts receivables 0 0 0 Receivables with group companies 240 85 287 Other short-term receivables 11 10 13 Cash and cash equivalents 10 7 1 Total current assets 261 10 3 301 TOTAL ASSETS 7 230 5 603 7 222 EQUITY AND LIABILITIES Equity Restricted equity 67 55 66 Unrestricted equity 3 839 3 176 3 880 Total shareholders equity 3 907 3 231 3 946 Provisions 791 699 786 Long term liabilities Interest-bearing liabilities 1 823 1 5 10 1 826 Other long-term liabilities 28 29 33 Total long-term liabilities 1 851 1 539 1 859 Short-term liabilities Interest-bearing liabilities 594 119 571 Accounts payable 3 6 7 Liabilities to group companies 54 6 24 Other liabilities 31 3 29 Total short-term liabilities 682 13 4 631 TOTAL EQUITY AND LIABILITIES 7 230 5 603 7 222 March, 31 ===== SIDA 17 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 16 NOTES AND PERFORMANCE MEASUREMENTS NOTE 1 – ACCOUNTING PRINCIPLES The consolidated financial statements have been prepared in accordance with the Swedish Annual Accounts Act, RFR 1 Supplementary Accounting Rules for Groups and International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRS IC) as adopted by the EU. The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The financial statements have been prepared according to cost method except from certain financial assets and liabilities measured at fair value through profit and loss. The accounting policies adopted are consistent with those of the Annual report for the year ended December 31, 2022. New or amended IFRS standards, effective from January 1, 2023, have no impact on the result and financial position of the Group. NOTE 2 - SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS The Group makes estimates and assumptions about the future. The estimates for accounting purposes that result from these will, by definition, rarely correspond to the actual result. The estimates and assumptions that entail a significant risk of significant adjustments in reported values for assets and liabilities in this interim report correspond to those describe in Note 3 in the Annual report 2022. No significant new assessments and estimates have been made during the first quarter of 2023 that have entailed any significant changes in reported items. NOTE 3 – SUBSEQUENT EVENTS Humble Group has given notice of the annual general meeting to be held on Friday May 19, 2023. Peter Werme, chairman of the board, has informed the nomination committee that he is not available for re-election as either board member or chairman of the board at the annual general meeting 2023. ===== SIDA 18 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 17 NOTE 4 – SEGMENT INFORMATION AND DISCLOSURE OF REVENUE The Group's chief operating decision maker is the chief executive officer (CEO), who primarily uses a measure of earnings before interest, tax, depreciation and amortisation (EBITDA) to assess the performance of the operating segments. The CEO does not follow up the segments' assets or liabilities for allocation of resources or assessment of results. For further information regarding the segments, please refer to page 5-8. The Group financials consists of below combined segments: 2023, MSEK Future Snacking Sustainable Care Quality Nutrition Nordic Distribution Other* Total Net sales Revenue from sales to external customers 238 484 345 526 1 592 Raw material and consumables - 13 6 - 3 17 -253 -402 - 1 10 8 Gross profit 10 2 16 7 91 12 4 484 Gross margin, % 43% 34% 26% 24% 30% EBITDA 23 65 55 22 -9 15 6 EBITDA in relation to net sales 9% 13 % 16 % 4% 10 % EBIT 6 33 42 14 - 11 85 EBIT in relation to net sales 3% 7% 12 % 3% 5% PROFIT AND LOSS AFTER FINANCIAL ITEM S 4 32 41 11 -84 3 P&L after financial items in relation to net sales 2% 7% 12 % 2% 0% * Other refers to Parent company and minor administrative entities 2022, MSEK Future Snacking Sustainable Care Quality Nutrition Nordic Distribution Other* Total Net sales Revenue from sales to external customers 14 8 396 13 4 19 5 873 Raw material and consumables - 77 -244 -97 - 15 9 - 576 Gross profit 71 15 3 36 36 0 297 Gross margin, % 48% 39% 27% 19 % 34% EBITDA 10 33 17 12 -8 64 EBITDA in relation to net sales 7% 8% 13 % 6% 7% EBIT -1 4 12 7 -9 14 EBIT in relation to net sales 0% 1% 9% 4% 2% PROFIT AND LOSS AFTER FINANCIAL ITEM S -3 -8 12 7 -38 -32 P&L after financial items in relation to net sales -2% -2% 9% 3% -4% * Other refers to Parent company and minor administrative entities ===== SIDA 19 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 18 NOTE 5 – ITEMS AFFECTING COMPARABILITY Humble Group recognises items affecting comparability to EBITDA to visualise comparable figures that are adjusted for the items that occur in historical numbers for various reasons. Explanation of what the items affecting comparability mainly refer to are presented in Note 10 in the Annual report 2022. Humble has not adjusted for any items related to extraordinary freight costs during 2023. The main adjustment item during the period was related to revaluation of contingent considerations of MSEK -31 and employee-related compensation and lock-in penalties of MSEK 12. NOTE 6 – PROFORMA FINANCIALS Humble Group is a fast-growing FMCG group with an adopted strategy to grow both organically and through acquisitions. To illustrate the Group's scope at the date of publication of this interim report, Humble present a proforma on the key financials from the income statement. The proforma financials have not been adjusted for intercompany sales. Such transactions would theoretically have occurred if the subsidiary would have been part of Humble Group for the presented periods. The purpose is to visualise how the Group's financial position and results would have looked like on Mars 31 2023, if the companies acquired during the year, or where acquisition agreements have been communicated, would have been consolidated with the existing part of the Group. Besides the subsidiaries where Humble Group have completed the closing of the acquisitions and where full consolidation of accounts take place, below proforma financials include during the quarter completed acquisitions of Privab Trollhättan, Privab Ystad, Privab Grossisterna and Napame Holding AB. The closing of these four acquisitions took take place during March 2023. NOTE 7 - NET INTEREST-BEARING DEBT Humble Group's net interest-bearing debt as of March 31, 2023, is presented in table to the right. Adjusted EBITDA Proforma amounted to 669 MSEK. Net Interest-bearing debt in relation to Adjusted EBITDA proforma amounts to 3,4x at the end of this reporting period. MSEK 2023 2022 Acqusition related cost 5 3 Revaluation of earn-outs -31 -1 Employee-related compensation and lock-in penalties 12 38 Surplus value in inventory 0 3 Donations 0 2 Restructuring 5 4 Total adjustment items -9 48 First quarter March, 31 March, 31 MS EK 2023 2022 Interest-bearing liabilities Bond financing debt 1 823 15 10 Liability to credit institutions 771 405 Lease liabilities 14 4 10 2 Total interest-bearing liabilities 2 738 2 01 7 Cash and cash equivalents -440 -262 Net Interest Bearing Debt (NIBD) 2 298 1 75 5 MSEK Proforma 2023 Proforma 2022 Proforma 2021 Proforma Q1 2023 Proforma FY 2022 Proforma Q1 2022 Net sales 1 828 1 508 1 18 3 7 048 6 728 5 799 EBITDA (Swedish GAAP) 15 5 13 4 94 576 555 544 Items affecting comparability (Swedish GAAP) -24 20 29 26 69 14 4 ADJUSTED EBITDA (Swedish GAAP) 13 1 15 4 12 3 602 624 688 Change in Items Affecting Comparability due to IFRS 16 15 14 67 67 54 ADJUSTED EBITDA (IFRS) 14 7 16 9 13 7 669 691 742 First quarter Last Twelve M onths ===== SIDA 20 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 19 NOTE 8 – BUSINESS COMBINATIONS BUSINESS COMBINATIONS 2023 The acquisitions are presented on an aggregated level, as the relative amounts of the individual acquisitions are not deemed to be material. Acquisitions During first quarter of 2023, the parent company acquired 100% of four subsidiaries. The subsidiaries have operations within distribution and manufacturing. Identified excess values are linked to Customer relationship and listing of 11 MSEK, Trademark and brands of 20 MSEK, and Deferred tax liability of 26 MSEK. Significant estimate: contingent consideration Two of the total acquisitions made during 2023 have an agreement of contingent considerations of total 32 MSEK. These considerations are due to payment within 0-3 years. The potential undiscounted amount payable under the agreements amount to 52 MSEK for cumulative EBITDA. The fair value of the contingent consideration was 32 MSEK at the initial recognition and is estimated by calculating the present value of the future expected cash flows at the end of the accounting period. The estimates are based on a weighted average cost of capital as discount rate of 11,02 %. Employment linked consideration No employment linked consideration is related to the acquisitions carried out during 2023. Revenue and profit contribution The acquisition of the subsidiaries contributed with net sales of 60 MSEK to the Group for the period from the acquisition date to end of March 2023. The subsidiaries also contributed with an EBITDA of 2 MSEK during the same period. If the subsidiaries would have been consolidated from January 1, 2023, the Group's income statement would present additional net sales of 135 MSEK and EBITDA of 8 MSEK. Acquisition-related costs Acquisition-related costs of 3 MSEK are included in the statement of profit and loss and in operating cash flows in the statement of cash flows. Summary of distribution of purchase price, PPA – IFRS Subsidiary Acquisition date Sh ares and votes Segment Vertical Country Napame Holding AB 2023-03-01 1 00%Future snacking Distribution Sweden Aktiebolaget Cool & Candy AB 2023-03-1 5 1 00%Nordic Distribution Distribution Sweden Skövde Snabbgross AB 2023-03-1 5 1 00%Nordic Distribution Distribution Sweden Privab Grossisterna AB 2023-03-1 5 1 00%Nordic Distribution Distribution Sweden MSEK Total acquisition Q1 , 2023 Goodwill 0 Customer relationships and listings 11 Trademarks and brands 20 Other fixed assets 0 Total fixed assets 15 1 Inventory 39 Accounts receivable 27 Liquid funds 20 Other current receivables 0 Total current assets 93 TOTAL ASSETS 245 Deferred taxes 26 Other provisions 0 Total provisions 26 Total long term liabilities 19 Accounts payable 41 Other current liabilities 0 Total current liabilities 53 TOTAL LIABILITIES 98 NET ASSETS 14 6 Cash 75 Share issue 40 Contingent consideration 32 Deferred payment 0 Total Purchase price 14 6 ===== SIDA 21 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 20 NOTE 9 – FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE The levels in the fair value hierarchy are defined as follows: Financial instrument level 1 Quoted market prices (unadjusted) in active markets for identical assets or liabilities. Financial instrument level 2 Observable data for the asset or liability other than quoted prices included in level 1, either directly (i.e. as price quotations) or indirectly (i.e. derived from price quotations). Financial instrument level 3 When one or more of the significant inputs is not based on observable market data. The Group's financial assets measured at fair value through profit and loss consists of Other long-term securities, which are classified as level 1 in the fair value hierarchy. The Group's financial liabilities measured at fair value through profit and loss consists of Contingent consideration, which are classified as level 3 in the fair value hierarchy. There have been no transfers between fair value hierarchy levels during the reporting period. FAIR VALUE DISCLOSURE OF BOND LOANS The Group also has financial instruments in the form of two senior bond loans with a total credit line of 2,000 MSEK that are not measured at fair value in the balance sheet: - 300 MSEK was issued on January 5, 2021 (2021-2024), has a fixed interest rate of 9.50 % - 1,500 MSEK was issued on July 21, 2021 (2021-2025), has a variable interest rate (STIBOR 3m + 8.25 %) For the bond loan 2021-2025, the measurement at amortised cost corresponds in all essentials to its fair value because the interest rate is variable and as the credit risk has not changed significantly. The fair value of the bond loan 2021-2024 has been calculated by using cash flows discounted at a current interest rate. The bond loan is classified as level 3 in the fair value hierarchy as unobservable data has been used, including own credit risk. The carrying amount of the bond loan 2021-2024 for 2023 are 300 MSEK (300 MEK), whereas the fair value of the loan amount to 276 MSEK (260 MSEK). CONTINGENT CONSIDERATIONS The total contingent consideration to be paid are generally conditioned by significant financial performance improvements, which usually is measured to certain pre-determined EBITDA- levels by the subsidiary to be reached. The nature of the payments is generally a subject for Humble Group to decide, with a majority to be paid in cash but can also be paid with newly issued shares. This has a potential positive impact of the Groups cash flow and long-term net debt. The mechanics behind the additional purchase prices differ between the various acquisitions and the Group's commitments also extend over a longer time horizon. The provision in the consolidated balance sheet is presented at a higher level and constitutes a valuation of management's best assessment of the expected future cash flow. This assessment is made on a subsidiary-based level and is revalued regularly. The contingent considerations are recognised at fair value and have been discounted with 11,02% discount rate. The duration to maturity is presented below. INPUT USED IN RECURRING LEVEL 3 FAIR VALUE MEASUREMENTS AND VALUATION TECHNIQUES The contingent considerations in the Group have been calculated based on the nominal value of the best estimate of the expected outcome on the date of the acquisition. The estimate is based on management's assessment of the probable amount to be paid given the terms of the share transfer agreement. The fair value of the contingent considerations has been calculated based on an interest rate corresponding to the remaining term until payment at each reporting date. During 2023, -18 MSEK (3) in interest income was recognised as finance expenses regarding expenses related to contingent considerations. Estimated payments per year Nominal value Fair value 2023 391 384 2024 288 255 2025 172 13 7 2026 20 14 Total contingent considerations 871 791 Contingent consideration, MSEK 2023 2022 Opening balance, Jan 1 780 737 New acquisitions 32 6 Payments -8 -9 Revaluation -31 -32 Interest expenses related to unwinding of discounting effect 18 0 Translation differences 0 -1 Closing balance, Mars 31 791 699 March, 31 ===== SIDA 22 ===== | FINANCIAL INFORMATION Humble Group AB Interim Report January – March 2023 21 DEFINITIONS AND CALCULATIONS ON KEY RATIO This report includes definitions and key figures that are not clearly defined in ÅRL or International Financial Reporting Standards (IFRS) but are what the company management considers to be important measures of the business's development, whereupon they are defined below. Net Sales The operation’s main income, invoiced costs, side income and income corrections. Gross Profit Net sales less raw materials and consumables. Gross Profit is calculated as 1 592 – 1 108 = 484 MSEK. Gross Margin Gross Profit in relation to net sales. Gross Margin is calculated as 484 / 1592 = 30 %. EBITDA Earnings before payment of interest and tax as well as operational depreciation and amortisation of tangible and intangible fixed assets and depreciation and amortisation on acquisition-related surplus values. Adjusted EBITDA Earnings before payment of interest and tax as well as depreciation of tangible and intangible fixed assets, adjusted for items that are deemed to be of a non-recurring nature and therefore not recurring for operating activities. Adjusted EBITDA margin is Adjusted EBITDA divided by total revenue. Adjusted EBITDA is calculated as 156 – 9 = 147 MSEK. EBITA Earnings before payment of interest and tax as well as amortisation of intangible fixed assets and amortisation on acquisition-related surplus values. EBITA-margin is EBITA in relation to net sales. Adjusted EBITA Earnings before payment of interest and tax as well as amortisation of intangible fixed assets and amortisation on acquisition-related surplus values, adjusted for items that are deemed to be of a non-recurring nature and therefore not recurring for operating activities. Adjusted EBITA margin is Adjusted EBITA divided by total revenue. Adjusted EBITA is calculated as 130 – 9 = 121 MSEK. EBIT Earnings before payment of interest and tax. Adjusted EBIT Earnings before payment of interest and tax adjusted for items that are deemed to be of a non-recurring nature and therefore not recurring for operating activities. Adjusted EBIT margin is Adjusted EBIT divided by total revenue. Adjusted EBIT is calculated as 85 - 9 = 76 MSEK. Net interest bearing debt Total interest-bearing liabilities less cash and cash equivalents. Net interest-bearing debt is calculated as 2 738 – 440 = 2 298 MSEK. Organic growth in net sales Change in net sales adjusted for exchange rate effect and net sales from acquired companies during the period. Organic growth in net sales is calculated as 118 / 873 = 14 %. Contingent consideration Deferred purchase price payments that are contingent upon future performance of an acquired subsidiary. The consideration can be paid in both cash and shares and are presented to fair value based on management’s best estimate of the occurrence of future payments. Average number of employees (FTE) Shows the average number of employees during the period and is calculated as the number of employees multiplied by the employment rate in relation to the standard time for full-time work. FMCG FMCG is an industry term and is short for Fast Moving Consumer Good. Proforma Humble Group is a fast-growing FMCG Group with an adopted strategy to grow both organically and through acquisitions. To illustrate the Group's scope at the date of publication of this interim report, Humble present a proforma on the income statement. The purpose is to visualise how the Group's financial position and results would have looked like on March 31, 2023, if the companies acquired during the year, or where acquisition agreements have been communicated, had been consolidated with the existing part of the Group. ===== SIDA 23 ===== | THE BOARD OF DIRECTORS’ APPROVAL Humble Group AB Interim Report January – March 2023 22 BOARD OF DIRECTORS’ APPROVAL The Board of Directors and the CEO assure that the interim report gives a true and fair view of the Group's and the Parent Company's operations, position and results and describes significant risks and uncertainties that the Parent Company and the companies included in the Group face. Stockholm May 4, 2023 Peter Werme Ola Cronholm Chairman of the Board Dajana Mirborn Henrik Patek Hans Skruvfors Björn Widegren Simon Petrén Chief Executive Officer This report has not been subject to review by the company's auditor. This information is such that Humble Group AB is obliged to publish in accordance with the EU regulation on market abuse. The information was submitted for publication on May 4, 2023, at 08:00 CET. ===== SIDA 24 ===== | CONTACT US Humble Group AB Year-End Report January – March 2023 Company Registration Number 556794-4797 Headquarters Klara Norra Kyrkogata 29 111 22 Stockholm info@humblegroup.se www.humblegroup.se +4608 613 28 88 Johan Lennartsson Chief Financial Officer johan.lennartsson@humblegroup.se Simon Petrén Chief Executive Officer simon.petren@humblegroup.se Noel Abdayem Vice President & COO Brands noel.abdayem@humblegroup.se Marcus Stenkil Head of Merger & Acquisitions marcus.stenkil@humblegroup.se Kristoffer Zinn Head of analytics kristoffer.zinn@humblegroup.se