Pricer

Interim / Quarterly Report • Jul 18, 2024

Interim Report

January–June 2024

The quarter April–June 2024

• Net sales amounted to SEK 644.0 M (687.2), a decrease of 6.3 percent compared to the same quarter last year.
• Operating profit increased to SEK 48.5 M (-0.3), which corresponds to an operating margin of 7.5 percent (0.0).
• Operating profit before depreciation, amortization and impairment rose to SEK 66.4 M (14.6).
• Cash flow from operating activities increased to SEK 68.9 M (19.0).
• Order intake was SEK 497.5 M (678), a decrease of 26.6 percent compared to the same quarter last year.
• Order backlog amounted to SEK 490 M (626), of which the majority is expected to be delivered in Q3 and Q4 2024.
• Profit for the quarter increased to SEK 42.3 M (-15.8).
• Earnings per share (basic) were SEK 0.26 (-0.14). Earnings per share (diluted) were SEK 0.26 (-0.14).

The period January–June 2024

• Net sales amounted to SEK 1,314.2 M (1,258.7), an increase of 4.4 percent compared to the same period last year.
• Operating profit increased to SEK 77.2 M (-14.8), which corresponds to an operating margin of 5.9 percent (-1.3).
• Operating profit before depreciation, amortization and impairment rose to SEK 111.4 M (14.9).
• Cash flow from operating activities increased to SEK 51,6 M (-78,0).
• Order intake was SEK 1,469 M (1,385), an increase of 6.1 percent compared to the same period last year.
• Profit for the period was SEK 57.4 M (-43.0).
• Earnings per share (basic) were SEK 0.35 (-0.39). Earnings per share (diluted) were SEK 0.35 (-0.39).

	Q2	Q2	6 mos.	6 mos.	Rolling	FY
Amounts in SEK M unless otherwise stated	2024	2023	2024	2023	12 mos.	2023
Order intake	498	678	1,469	1,385	2,661	2,576
Net sales	644.0	687.2	1,314.2	1,258.7	2,736.7	2,681.2
Gross profit margin, %	22.8%	16.0%	21.0%	15.9%	19.4%	17.0%
Operating profit (EBIT) 1)	48.5	-0.3	77.2	-14.8	101.8	9.8
Operating profit before depreciation, amortization and impairment (EBITDA) 1)	66.4	14.6	111.4	14.9	167.5	71.1
Items affecting comparability					34.1	34.1
Operating profit (EBIT) adjusted for items affecting comparability 1)	48.5	-0.3	77.2	-14.8	135.9	43.9
Operating profit before depreciation/amortization and impairment (EBITDA) adjusted for items affecting comparability 1)	66.4	14.6	111.4	14.9	201.6	105.2
Operating margin % 1)	7.5%	0.0%	5.9%	-1.3%	3.7%	0.4%
Operating margin adjusted for items affecting comparability % 1)	7.5%	0.0%	5.9%	-1.2%	5.1%	1.6%
Profit/loss for the period	42.3	-15.8	57.4	-43.0	52.2	-48.3
Earnings per share, SEK 2)	0.26	-0.14	0.35	-0.39	0.32	-0.35

1) Comparative items have been adjusted according to the new accounting policy. See Note 1.

2) Basic earnings per share.

Net sales in the quarter

Operating profit for the quarter

Operating margin in the quarter

Pricer in brief

Pricer is a global leader in solutions for automation and communication in physical stores with a focus on driving digitalization and changing the retail trade. With its innovative cloud-based platform Pricer Plaza, the company helps retailers streamline their operations, improve the buying experience, and increase sales. Pricer's solutions are based on electronic shelf labels and digital signage and enable retailers to communicate with their customers, employees and suppliers.

Pricer's solution is currently available in more than 25,000 stores in more than 70 countries.

Pricer was founded in Sweden in 1991 and is listed on Nasdaq Stockholm, Mid Cap.

Retail's first choice

With solutions that match customers' needs better than our competitors, and with a business model and sales strategies adapted to the retail trade of both today and tomorrow, Pricer should be retail's first choice of solutions for automation and communication in stores.

Solutions that strengthen brick-andmortar retail in a digital world

Digital solutions based on electronic shelf labels are a central part of the physical stores' digitalization strategy. By enabling real-time pricing and dynamic information, the solution not only improves the shopping experience, but also gives stores a competitive advantage by allowing them to quickly adapt to market changes. The solution also means that the stores can offer their customers a uniform experience, regardless of whether they shop in the store or online. With features such as integrated information and inventory management, in-store e-commerce order picking solutions, and automated pricing for individual stores or entire chains, employees benefit from time savings, store operations are optimized, and profitability increases.

Net sales, SEK M Operating profit, SEK M

Net sales per geographic region, 1 January–30 June 2024

22% I SEK 294 ^M Americas 13% I SEK 173 ^M Asia, Middle East and Central & Eastern Europe 64% I SEK 847 ^M Europe

A new quarter of profitability and strong cash flow from operating activities

It is very gratifying that again in the second quarter we can report that our long-term efforts to improve the company's profitability resulted in a continued improvement to the gross margin, operating profit and net profit compared with earlier quarters.

During the quarter, we also won a highly strategic contract when a large Tier 1 North American grocery retailer placed its first order for our Pricer Plaza SaaS solution and four-color labels for full-store installations at 50 of its 1,500 stores, making it the largest deployment of four-color labels in North America to date.

Delayed orders impact order intake

The order intake for the quarter amounted to SEK 498 M (678). The lower order intake is an effect of expected orders from two of our largest customers being delayed until after summer. We have ongoing discussions with both and expect a good order intake during the autumn as both customers need for continued, or accelerated, store digitization remains.

Compared with last year, we can see that the order intake in France and Sweden has slowed slightly, which was offset by a higher order intake in North America, the Nordics and Italy.

Net sales of SEK 644 M (687) for the quarter indicated a 6-percent decline compared with the year-earlier quarter. Like the order intake, net sales were also impacted by order delays, although this could be offset by high sales in several markets. Six different sales areas can be found among our top ten customers in terms of sales, with Oceania growing significantly as a result of successful sales efforts and widespread interest in our SaaS solution Pricer Plaza and four-color labels.

Market growth as retailers move from words to action

In the North American market, we can see how interest in and the need for in-store digitalization is continuing to rise. Major players in the market are moving from words to action. The strategic orders in the second quarter described above are a clear sign of this.

The changes we have made in our North American organization have started to gain traction quicker than expected but need more time to reach their full effect. In the UK, we attended a fantastic trade fair in April and a large number of leading chains have initiated strategic activities to evaluate, plan and budget for digitalizing their stores over the next few years. We can also see that large volumes of four-color labels are in demand in an increasing number of markets since they provide our customers with better opportunities to generate interest and capture awareness in stores. For us, this means a more advantageous product mix and the possibility to strengthen the gross profit margin.

We will also start producing four-color labels in Germany in the autumn in order to meet the needs for such labels in Europe and North America, and we are looking forward to delivering volumes of these "made in Germany" labels in the fourth quarter.

Third highest operating and net profit in the Group's history

Despite experiencing what we consider to be a short-term decline in order intake and sales, our long-term efforts to strengthen profitability are clearly continuing to bear fruit. Operating profit for the quarter rose to SEK 48.5 M (-0.3), representing a sharp improvement compared with the same

"In the North American market, we can see how interest in and the need for in-store digitalization is continuing to rise."

quarter last year. The same is true for net profit, which increased to SEK 42.3 M (-15.8).

The improved profitability this quarter was attributable to effective cost control and the continued improvement in the gross margin, which rose to 22.8 percent (16.0) in the quarter. The rising gross margin is the result of the long-term efforts that we initiated in 2022 and that have continued in 2024, and the margin was also positively impacted by an advantageous customer and product mix in the quarter.

Well on our way to long-term competitiveness and profitable growth

Our internal transformation project is progressing well and as part of our journey of change we have reorganized the operations to clarify areas of responsibility, roles and mandates. The new organization also has a well-defined structure and ownership for our internal activities related to processes and automation so as to ensure growth without costs increasing at the same rate. In addition, our cost savings program is continuing according to plan and the full effects will be achieved early in the third quarter.

We have continued to deliver a strong cash flow during the quarter and are now on our way to establishing a stable platform to enable us to attain our long-term financial goals: annual growth in net sales on par with the market or at least 15 percent, and an operating margin in excess of 8 percent.

Retail's first choice

We have the privilege of operating on a market with the favorable combination of a low degree of penetration and a high rate of growth. A constantly increasing number of retailers, large and small, in both existing and new markets and segments, believe that the digitalization of their chains is critical for them to tackle the challenges they face, such as staff shortages, inflation and competition.

Our solutions are a strategic part of an investment in store digitalization and help our customers to boost their profitability through greater efficiency, improved control and monitoring, increased sales and an enhanced in-store customer experience.

As one of the leaders in solutions for store communication, I see particularly good opportunities for us to create long-term competitiveness, profitable growth and become retail's first choice in the future.

Magnus Larsson President and CEO

Market trends and overview

Market growth

The market for digital labels and displays is experiencing a strong phase of growth, although growth to date has come from a limited number of markets, which means that the degree of penetration globally remains low, estimated at about 10 percent. With around one billion labels and displays installed, the global addressable market is about 10 billion units.

Pricer is a leader in the global market having delivered well over 300 million labels to 25,000 stores, of which 3,500 to date are connected to the company's SaaS solution Pricer Plaza.

Growth factors

The foundation of the strong growth seen in retail tech and solutions for digital labels and displays is retailers' aims to digitalize their physical stores. The reason for this is to streamline, thereby reducing costs and increasing the size of customer baskets and enhancing the in-store customer experience to increase revenue and profitability. There is also a desire to leverage in-store digitalization to build a platform that offers new insight into customer behavior, similar to online stores.

Factors that impact growth in a specific market are inflation, access to labor, salary levels, competition and an increasing pace of sustainability. Markets with a low degree of penetration usually display robust growth after the first leading chain takes its first steps and leads the way by digitalizing a large number of its stores.

Markets and segments

Pricer has divided the market into established and strategic markets. On an established market, the company has the resources it needs to maintain or increase its market share without making large investments. Examples of established markets are the Nordics and Baltics, France, Benelux, Italy and Canada.

Strategic markets offer high growth potential, relevant customer segments and complement the company's customer proposition, but also require investments of varying degrees to address the market and capture customers. The markets that Pricer currently considers to be strategic are the US, UK, Spain, Germany and Australia.

The company also divides the market into different customer segments, such as grocery, DIY, consumer electronics, pharmacy and general retail, with grocery representing the largest segment.

Trends in technology and customer solutions

Rapid growth in in-store digitalization imposes both stringent and partially new requirements on the solutions and technology that are currently used. The store environment is complex for the products that are installed there, and is more comparable with an industrial rather than an office environment. Store solutions must be durable, easy to handle, require minimal maintenance and be continuously available. Pricer's technical platform meets these requirements better than competing solutions in demanding environments.

Most chains are interested in the option of advertising and running in-store campaigns, and the additional sales and high profitability generated by this. Developments in Retail Media and Digital Signage, combined with the new business models this offers, are expected to generate new revenue for both chains and suppliers. Four-color labels and displays are a step on this path and are used by an increasing number of retailers to generate additional sales and added value.

In-store digitalization is also accelerating interest in different types of IoT solutions in the forms of gauges, sensors and actuators such as thermometers, motion detectors and electronic locks. This is driving standardization of a homogenous digital infrastructure.

Sustainability is the key to success

Digital solutions that minimize impact on the environment and support the stores' sustainability strategy are becoming increasingly important from the perspective of offering a competitive advantage, and in some markets are also a legal requirement. This is a key aspect in Pricer's product development since new technology and new materials can be used to minimize both the company's carbon footprint and that of its customers.

In the past year, we have worked intensively and closely with our customers to demonstrate the value, capacity and scalability of Pricer's technology and the implementation solutions we offer.

Diego Mazzone, President and CEO of Pricer's partner JRTech Solutions, which signed an agreement in the second quarter of the year with a large Tier 1 North American grocery retailer for the cloud-based platform Pricer Plaza that will allow for in-store automation and communication, initially in 50 of the chain's stores.

Financial information

Order intake

Second quarter

Order intake for the second quarter amounted to SEK 498 M (678), a decrease of 26.6 percent compared to the same quarter last year. Adjusted for exchange rate fluctuations, order intake fell 26.1 percent. Order intake is spread across a large number of customers on several geographic markets, with Canada, France and Finland as the largest individual countries. The lower order intake is an effect of expected orders from two of our largest customers being delayed until after summer. The order intake also tends to vary more from quarter to quarter than net sales, and thus the trend should be analyzed over time.

Order backlog on June 30, 2024 amounted to SEK 490 M (626), of which the majority is expected to be delivered in Q3 and Q4 2024.

Order intake by geographic region

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	Rolling 12 mos.	FY 2023
Europe	269	447	878	844	1,594	1,559
Americas	199	153	388	395	744	751
Asia, Middle East & Central & Eastern Europe	30	78	203	146	323	266
Total order intake	498	678	1,469	1,385	2,661	2,576

Net sales and profit/loss

Net sales per geographic region

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	Rolling 12 mos.	FY 2023
Europe	395.1	423.4	847.0	761.7	1,717.3	1,632.0
Americas	136.8	207.0	294.0	400.2	683.6	789.8
Asia, Middle East & Central & Eastern Europe	112.1	56.8	173.3	96.8	335.8	259.4
Total net sales	644.0	687.2	1,314.2	1,258.7	2,736.7	2,681.2

Net sales and profit/loss

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	Rolling 12 mos.	FY 2023
Net sales	644.0	687.2	1,314.2	1,258.7	2,736.7	2,681.2
Cost of goods sold	-496.8	-577.0	-1,038.9	-1,058.4	-2,207.0	-2,226.5
Gross profit	147.1	110.2	275.3	200.3	529.7	454.6
Gross profit margin	22.8%	16.0%	21.0%	15.9%	19.4%	17.0%
Operating expenses	-94.8	-108.2	-189.9	-215.1	-419.6	-444.8
Other income and expenses	-3.9	-2.3	-8.2	–	-8.1	–
Operating profit/loss	48.5	-0.3	77.2	-14.8	102.0	9.8
Operating margin	7.5%	-0.0%	5.9%	-1.2%	3.7%	0.4%

Net sales and profit/loss

Net sales for the quarter amounted to SEK 644.0 M (687.2), a decrease of 6.3 percent compared to the same quarter last year. The reason for the decline in sales was partly due to lower sales to two of Pricer's largest customers. However, this situation is expected to change in the second half of the year. Adjusted for exchange rate fluctuations, net sales fell 7.0 percent. Net sales in Q2 2024 were spread across a large number of customers.

Of net sales, SEK 22.9 M (15.5) refers to recurring revenue, an increase of 48 percent.

Gross profit amounted to SEK 147.1 M (110.2), and the gross margin amounted to 22.8 percent (16.0). The accounting policy for cost of goods sold is unaltered compared to previous years, the item includes production, purchases, toll and freight costs, and depreciation/amortization. SEK 15.7 M of the depreciation/amortization refers to capitalized expenditure for development projects and an additional SEK 9.8 M refers to machinery and tools. The company's work to reduce production costs and harmonize the product portfolio had a clear effect on the gross margin in the quarter.

The majority of the company's costs for goods sold are in USD, while net sales is primarily in USD and EUR.

Operating expenses decreased to SEK 94.8 M (108.2) for the quarter, down 12.4 percent compared to the same quarter last year. The cost reduction is an effect of the completed cost savings program. Operating expenses are primarily in SEK, but they are also in EUR and USD.

Other income and expenses amounted to SEK -3.9 M (-2.3). Operating profit amounted to SEK 48.5 M (-0.3), which

corresponded to an operating margin of 7.5 percent (-0.0). Financial items consisting of interest income of SEK 4.3 M, interest expenses of SEK -8.6 M and factoring expenses of SEK -0.5 M amounted to a total of SEK -4.9 M (-13.7).

Tax for the quarter amounted to SEK -1.3 M (-1.8), of which SEK 0.0 M (0.3) referred to deferred tax and SEK -1.3 M (-2.1) to current tax. Deferred tax assets related to capitalized losses carried forward amounted in the balance sheet on June 30, 2024, to SEK 67.4 M (68.1). Profit for the period was SEK 42.3 M (-15.8).

Translation differences in other comprehensive income of SEK -6.4 M (22.1) consisted of currency revaluation of net assets in foreign operations.

Cash flow, investments and net debt

Second quarter

Cash flow from operating activities amounted to SEK 68.9 M (19.0) in the second quarter. The change in working capital during the quarter positively affected the cash flow from operating activities by SEK 22.3 M (7.7), mainly due to increased focus on trade receivables and improved payment terms from customers.

Cash flow from investing activities amounted to SEK -18.5 M (-17.1) and consisted primarily of capitalized development expenditure of SEK -11.1 M (-15.3) regarding product development and investments in property, plant and equipment of SEK -7.4 M (-1.8).

Cash flow from financing activities amounted to SEK -12.4 M (-7.0) for the second quarter and referred to amortization of lease liabilities of SEK -4.1 M (-3.6), interest on the bond loan of SEK -7.1 M (-10.0), and factoring expenses of SEK -1.2 M (-2.2).

Exchange rate differences in cash and cash equivalents amounted to SEK 2 M (3.7).

Cash and cash equivalents amounted to SEK 254.9 M (95.3) on June 30, 2024. In addition to cash and cash equivalents, the company had bank overdraft facilities of SEK 48 M (48), of which SEK 0 M (0) was utilized. At the end of the period, the Group had a net debt of SEK 14.4 M, calculated on interest-bearing liabilities of SEK 250 M, lease liabilities of SEK 19.3 M, and cash and cash equivalents of SEK 254.9 M.

Equity

Issued and outstanding shares, June 30, 2024

Denominated in 000s of shares	Class A	Class B	Total
Issued at beginning of year	226	163,740	163,966
Issued & converted shares during the year	–	–	–
Issued at end of year	226	163,740	163,966
Of which treasury shares	–	588	588
Shares outstanding at end of period	226	163,152	163,378

Class A shares have five votes and Class B shares have one vote.

Pricer's holdings of treasury shares amounted on June 30, 2024, to 588,384 (606,634) Class B shares. These shares are held to be able to meet obligations on matching and performance shares under the outstanding performance share plans. The value of the promise is expensed during the vesting period.

For more information about the performance share plans, please refer to Note 4 of the annual report for 2023.

Outstanding performance share plan (LTI)

	Maximum number of shares	Vesting period	Transferred free of charge to the participants
LTI 2022	148,800	June 2022–May 2025	June 2025

Employees

The average number of employees during the second quarter was 200 (196), and the number of employees at the end of the period was 196 (197). The average number, including hired staff and consultants, was 216 (219) in the second quarter and 212 (221) at the end of the period. As a consequence of the company's cost savings program decided in the fourth quarter of 2023, the number of employees and hired consultants has decreased in the current year.

Parent Company

The Parent Company's net sales amounted to SEK 1,168.5 M (1,116.3), and the profit for the period amounted to SEK 45.2 M (-60.0). The Parent Company's cash and cash equivalents amounted to SEK 150 M (27.0) at the end of the period.

Risks and uncertainty factors

Pricer's earnings and financial position are affected by various risk factors that must be considered when assessing the Group and the Parent Company and their future potential. These risks apply primarily to the development of the market for not only digital shelf edge labels and systems and large currency fluctuations but also to political factors affecting trade such as import duties. In view of the client structure and the scope of the agreement, a delay in the installations or large fluctuations in exchange rates can have a significant effect in any given quarter. More information regarding risks is available in the 2023 Annual Report; see page 33 and Note 20.

Pricer is carefully following the global uncertainty as a result of the war in Ukraine and the conflict in Israel. However, Pricer has very limited exposure to affected markets and is experiencing no direct impact on its operations. The company is also following the uncertainties in the Red Sea.

The Board of Directors and CEO hereby certify that this interim report provides a true and fair view of the results of the operations, financial position and performance for the Parent Company and the Group and describes the significant risks and uncertainties to which the Parent Company and other companies in the Group are exposed.

This interim report for Pricer AB (publ) was submitted on the authorization of the Board of Directors.

Stockholm, July 17, 2024 Pricer AB (publ)

Bernt Ingman Chairman of the Board Jenni Virnes Ole Mikael Jensen Torbjörn Möller Emil Ahlberg Linda Pimmeshofer Forecast

No forecast is provided for 2024.

Significant events in the second quarter

• The Annual General Meeting of Pricer AB was held on May 7. The Annual General Meeting resolved, in accordance with the Board's proposal, to introduce an incentive program in the form of warrants for certain employees in the Pricer Group, and that the Board shall be composed of six directors with no deputies.
• Pricer signed an agreement with a North American grocery retailer at a value of SEK 90 M. The customer is one of the largest grocery chains in North America with over 1,500 grocery and pharmacy stores.

Significant events after the end of the reporting period

No significant events occurred after the end of the reporting period.

Financial calendar

Interim Report January–September 2024 October 24, 2024

This interim report report has not been subject to an audit.

This information is information that Pricer AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted through the agency of the contact person mentioned below for publication on July 18, 2024, at 7:00 a.m. CEST.

For more information, please contact:

Magnus Larsson, President and CEO, +46 (0)704 316 851 Claes Wenthzel, acting CFO, +46 (0)708 620 122

Magnus Larsson President and CEO

Financial Reporting

Group

• Condensed consolidated income statement

	Q2	Q2	6 mos.	6 mos.	FY
Amounts in SEK M	2024	2023	2024	2023	2023
Net sales	644.0	687.2	1,314.2	1,258.7	2,681.2
Cost of goods sold	-496.8	-577.0	-1,038.9	-1,058.4	-2,226.5
Gross profit	147.1	110.2	275.3	200.3	454.6
Selling expenses	-54.1	-54.5	-107.2	-114.2	-216.9
Administrative expenses	-32.1	-39.3	-64.7	-73.7	-162.4
Research and development costs	-8.5	-14.4	-18.0	-27.2	-65.5
Other income and expenses	-3.9	-2.3	-8.2	–	–
Operating profit/loss	48.5	-0.3	77.2	-14.8	9.8
Financial items	-4.9	-13.7	-17.4	-25.2	-50.6
Profit/loss before tax	43.6	-14.0	59.8	-40.0	-40.8
Income tax	-1.3	-1.8	-2.4	-3.0	-7.5
Profit/loss for the period	42.3	-15.8	57.4	-43.0	-48.3
Net profit for the period attributable to:
Owners of the Parent Company	42.3	-15.8	57.4	-43.0	-48.3

• Earnings per share

	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	FY 2023
Earnings per share, basic, SEK	0.26	-0.14	0.35	-0.39	-0.35
Earnings per share, diluted, SEK	0.26	-0.14	0.35	-0.39	-0.35
Number of shares outstanding, basic, million	163.4	110.4	163.4	110.4	137.1
Number of shares outstanding, diluted, million	163.7	110.8	163.4	110.8	137.3

• Consolidated statement of comprehensive income

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	FY 2023
Profit/loss for the period	42.3	-15.8	42.3	-43.0	-48.3
Items that have been or can be reclassified to profit or loss for the period
Translation differences	-6.4	22.1	14.7	25.7	-7.9
Other comprehensive income for the period	-6.4	22.1	14.7	25.7	-7.9
Comprehensive income for the period	35.9	6.3	72.1	-17.3	-56.2
Comprehensive income for the period attributable to:
Owners of the Parent Company	35.9	6.3	72.1	-17.3	-56.2

• Condensed consolidated balance sheet

Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023
ASSETS
Intangible assets	412.1	425.4	398.3
Property, plant and equipment	90.1	62.1	90.6
Right-of-use asset	13.0	21.5	18.1
Deferred tax assets	67.4	68.1	67.0
Total non-current assets	586.8	577.1	574.0
Inventories	691.0	543.7	653.6
Trade receivables	315.7	318.4	287.3
Prepaid expenses and accrued income	19.8	21.5	26.8
Other current receivables	273.7	367.9	198.7
Cash and cash equivalents	254.9	95.3	255.6
Total current assets	1,555.2	1,346.8	1,421.9
TOTAL ASSETS	2,142.0	1,923.9	1,995.9
EQUITY AND LIABILITIES
Equity
Share capital	164.0	111.0	164.0
Other capital contributions	596.4	390.2	617.4
Reserves	78.3	94.6	61.1
Retained earnings including profit for the year	190.3	119.5	114.7
Equity attributable to the Parent	1,028.9	715.3	957.2
Company's shareholders
Liabilities
Non-current provisions	41.9	9.3	48.0
Non-current liabilities to credit institutions	243.5	239.0	240.1
Non-current lease liabilities	6.9	10.3	9.9
Total non-current liabilities	292.3	258.5	298.0
Liabilities to credit institutions	–	–	–
Advances from customers	20.1	25.5	7.7
Trade payables	623.2	713.6	588.2
Current lease liabilities	6.2	12.7	9.3
Other current liabilities	25.0	41.1	29.8
Accrued expenses and deferred	123.4	113.9	84.3
income
Current provisions	22.8	43.3	21.5
Total current liabilities	820.7	950.1	740.8
Total liabilities	1,113.1	1,208.7	1,038.8
TOTAL EQUITY AND LIABILITIES	2,142.0	1,923.9	1,995.9
Equity per share, basic, SEK	6.30	6.48	5.86
Equity per share, diluted, SEK	6.29	6.46	5.85

• Condensed consolidated statement of changes in equity

Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023
Equity at start of period	957.1	732.2	732.2
Profit/loss for the period	57.4	-43.0	-48.3
Other comprehensive income for the period	14.7	25.7	-7.9
Comprehensive income for the period	72.1	-17.3	-56.2
Decrease in treasury shares	–	0.5	0.8
Dividend	–	–	–
New issue	–	–	280.6
Share-based payment, equity-settled	–	-0.2	-0.3
Total transactions with owners of the Group	–	0.3	281.1
Equity at end of period	1,029.2	715.3	957.1
Attributable to:
– Owners of the Parent Company	1,029.2	715.3	957.1

• Condensed consolidated cash flow

Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023
OPERATING ACTIVITIES
Operating profit/loss	77.2	-14.8	9.8
Adjustments for non-cash items	45.5	48.0	77.6
– of which depreciation and amortization	34.1	29.8	60.3
– of which impairment	0.0	18.3	11.7
– of which accrued cost for employee stock options	0.2	–	–
– of which Exchange rate differences/ translation differences	7.3	–	–
– of which Profit/loss on sale of assets	–	–	–
– of which change in provisions	4.0	–	–
Interest received	4.3	0.0	3.5
Interest paid	0.3	-18.8	-1.8
Income tax paid	-4.3	-3.6	-8.4
Cash flow from operating activities before changes in working capital	123.1	10.8	84.2
Cash flow from changes in working capital
Increase(-)/decrease(+) inventories	-29.2	134.3	9.6
Increase(-)/decrease(+) trade receivables	-14.5	4.7	4.8
Increase(-)/decrease(+) other current receivables	-70.8	-92.9	68.2
Increase(+)/decrease(-) trade payables	13.8	-150.5	-241.1
Increase(+)/decrease(-) other current liabilities	29.2	15.6	-2.4
Cash flow from changes in working capital	-71.5	-88.8	-160.4
Cash flow from operating activities	51.6	-78.0	-76.1
INVESTING ACTIVITIES
Acquisition of intangible assets	-23.0	-28.7	-47.8
Acquisition of property, plant and equipment	-10.3	-5.1	-43.0
Increase(-)/decrease(+) in non-current receivables from Group companies	–	–	–
Cash flow from investing activities	-33.3	-33.8	-90.8
FINANCING ACTIVITIES
Amortization of lease liabilities	-8.1	-7.0	-14.2
Non-current liabilities	–	-3.5	-5.9
Interest paid	-14.5	–	–
Factoring expenses	-4.1	-3.8	-10.0
Dividend paid
New issue	-0.6	–	300.9
Transaction costs	–	–	-20.4
Decrease in treasury shares	0.3	0.5	0.5
Net change overdraft facilities	–	–	–
Cash flow from financing activities	-26.9	-13.8	251.0
Cash flow for the period	-8.7	-125.6	44.2
Cash and cash equivalents at start of period	255.6	217.5	217.5
Exchange rate differences in cash and cash equivalents	8.1	3.4	-6.2
Cash and cash equivalents at end of period	254.9	95.3	255.6
Unutilized bank facilities	48.0	48.0	48.0
Available funds at end of period	302.9	143.3	303.6

* From 2024 onwards, interest paid to credit institutions is recognized under financing activities.

• Condensed Parent Company income statement

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	FY 2023
Net sales	586.3	543.1	1168.5	1,116.3	2,304.2
Cost of goods sold	-491.3	-495.2	-998.6	-1,032.6	-2,084.7
Gross profit	95.0	47.9	169.9	83.7	219.6
Selling expenses	-20.8	-21.2	-41.6	-51.2	-94.5
Administrative expenses	-21.3	-27.5	-41.1	-50.9	-92.7
Research and development costs	-10.1	-13.3	-20.8	-26.1	-64.2
Other income and expenses	-3.3	4.1	-7.4	–	8.8
Operating profit/loss	39.5	-18.2	59.0	-44.5	-23.0
Net financial income/expense	-4.7	-7.6	-14.2	-16.3	-40.1
Profit/loss before tax	34.8	-25.8	44.8	-60.8	-63.1
Income tax	0.1	0.4	0.4	0.8	-0.6
Profit/loss for the period	34.9	-25.4	45.2	-60.0	-63.7

• Parent Company Statement of Comprehensive Income

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	FY 2023
Profit/loss for the period	34.9	-25.4	45.2	-60.0	-63.7
Other comprehensive income for the period
Items that have been or can be reclassified to profit or loss for the period
Other comprehensive income for the period	–	–	–	–	–
Comprehensive income for the period	34.9	-25.4	45.2	-60.0	-63.7

• Condensed Parent Company balance sheet

Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023
ASSETS
Non-current assets
Intangible assets	125.5	127.8	118.2
Property, plant and equipment	87.1	58.6	87.3
Financial assets
Participations in Group companies	14.8	10.0	10.5
Receivables from Group companies		6.4	–
Deferred tax asset	65.7	66.5	65.4
Total financial assets	80.6	82.9	75.8
Total non-current assets	293.1	269.2	281.4
Current assets
Inventories	477.9	301.5	463.8
Current receivables
Trade receivables	178.5	103.7	111.5
Receivables from Group companies	140.1	229.9	166.7
Other current receivables	230.4	312.7	160.7
Prepaid expenses and accrued	14.4	13.5	15.3
income
Total current receivables	563.3	659.8	454.2
Non-current receivables from Group	184.4	180.5	186.0
companies
Total non-current receivables	184.4	180.5	186.0
Cash and bank balances	150.0	27.0	168.8
Total current assets	1,375.6	1,168.9	1,272.8
TOTAL ASSETS	1,668.7	1,438.1	1,554.2
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	164.0	111.0	164.0
Statutory reserve	104.8	104.8	104.8
Legal reserve for internally generated development expenditure	69.8	145.7	132.6
Total restricted equity	338.6	361.5	401.4
Non-restricted equity
Share premium reserve	193.6	193.0	193.1
Retained earnings	140.0	-99.1	141.5
Net profit for the year	45.2	-60.0	-63.7
Total non-restricted equity	378.7	33.9	270.9
Total equity	717.4	395.4	672.3
PROVISIONS
Provisions	41.0	37.8	38.1
Total provisions	41.0	37.8	38.1
NON-CURRENT LIABILITIES
Non-current liabilities to credit institutions	243.5	239.0	240.1
Non-current liabilities to Group	0.1	0.1	0.1
companies Total non-current liabilities	243.6	239.1	240.2
CURRENT LIABILITIES
Advances from customers	0.1	0.3	–
Trade payables	609.9	696.4	570.6
Liabilities to Group companies	17.6	17.6	22.4
Other current liabilities	-0.4	0.3	-7.6
Accrued expenses and deferred income	39.4	51.2	18.0
Total current liabilities	666.7	765.8	603.6
TOTAL EQUITY AND LIABILITIES	1,668.7	1,438.1	1,554.2

• Condensed Parent Company statement of changes in equity

Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023
Equity at start of period	672.3	454.7	454.7
Comprehensive income for the period	10.2	-63.7	-34.6
Decrease in treasury shares	–	0.5	–
New issue	-0.6	280.6	–
Dividend	–	–	–
Share-based payment, equity-settled	-0.4	0.2	–
Equity at end of period	681.5	672.3	420.6

Note 1 Accounting policies

This interim report for the Group was prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Annual Accounts Act. The interim report for the Parent Company was prepared in accordance with the Annual Accounts Act, Chapter 9 and RFR 2, Accounting for Legal Entities, which has been issued by the Swedish Corporate Reporting Board. The same accounting policies and bases for calculation were applied for the Group and the Parent Company as in the latest annual report, except for the changed accounting policies described below.

New accounting policies

Currency revaluations for trade receivables and payables were previously recognized under financial items but from the second quarter are recognized under operating expenses. Comparative figures have been adjusted to this new accounting policy.

Note 2 Revenue from contracts with customers

Breakdown of Revenue

Amounts in SEK M	Q2 2024	Q2 2023	6 mos. 2024	6 mos. 2023	FY 2023
Revenue from goods	588.3	631.1	1,213.4	1,159.0	2,463.8
Revenue from services	40.4	42.3	71.0	73.9	169.6
Revenue from licensees	15.3	13.8	29.8	25.7	47.7
Total	644.0	687.2	1,314.2	1,258.7	2,681.2

The company has allocated discounts proportionally for all performance obligations in the agreement except for when there is observable proof that the entire discount refers to one or several, but not all, performance obligations.

Note 3 Financial instruments

For financial instruments measured at amortized cost – trade receivables, other current receivables and cash and cash equivalents, liabilities to credit institutions, trade payables, lease liabilities, and other current interest-free liabilities – the fair value is assessed to correspond to the carrying amount. The fair values of other non-current and current liabilities are not assessed to deviate substantially from their carrying amounts.

Liabilities to credit institutions refer to a bond loan of SEK 250 M via Ture Invest AB. The bond has a four-year term with a variable interest rate (equivalent to STIBOR 3m + 6.875%). Under the terms of the bond, the Parent Company has undertaken to ensure that certain financial ratios related to gross margin, profit and balance sheet ratios are maintained for the Group. These commitments are to be met on a calendar quarterly basis. The conditions limit the Group's ability to incur additional financial debt and to dispose of assets. Pricer also has a credit facility via Nordea of SEK 50 M.

Financial instruments measured at amortized cost

Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023
Loan and trade receivables	842.1	774.6	738.9
Total financial assets	842.1	774.6	738.9
Liabilities to credit institutions	243.5	239.0	240.1
Lease liabilities	13.1	22.9	19.1
Other financial liabilities	626.4	715.6	590.3
Total financial liabilities	883.0	977.6	849.5

Note 4 Incentive Program 2024

At the Annual General Meeting on May 7, 2024, a decision was made on the introduction of a long-term incentive program in the form of an option program covering certain senior executives and key personnel. The program entails that employees within the Pricer Group are offered to acquire warrants at market value calculated according to the Black-Scholes valuation model. Each warrant entitles the warrant holder to subscribe to one new B share in the company at a subscription price corresponding to 130 percent of the volume-weighted average price of the company's B share on Nasdaq Stockholm.

Note ⁵ Related party transactions

Significant related party transactions are described in Note 23 of the consolidated financial statements in the 2023 Annual Report. No related party relationships changed, and no significant transactions took place with related parties that materially affect the Group's or Parent Company's financial position or earnings compared to the description in the 2023 Annual Report.

Note ⁶ Pledged assets and contingent liabilities

Floating charges (chattel mortgages) are a type of general collateral in the form of an undertaking to the bank. Pledged assets refer primarily to pledged shares in Pricer Inc., Pricer SRL and Pricer SAS for bond loans in 2022 that fall due in 2026. According to the bond loan with Ture Invest AB, the Parent Company

has undertaken to ensure that certain financial ratios related to gross margin, profit and balance sheet ratios are maintained for the Group. These commitments are to be met on a calendar quarterly basis. The Parent Company guarantees are issued to customs authorities and landlords.

Pledged assets and contingent liabilities

	Group			Parent Company
Amounts in SEK M	Jun 30 2024	Jun 30 2023	Dec 31 2023	Jun 30 2024	Jun 30 2023	Dec 31 2023
Pledged assets
Floating charge	300.0	300.0	300.0	300.0	300.0	300.0
Pledged shares in subsidiaries	246.3	221.7	221.0	–	–	–
Pledged receivables	–		10.5	–	9.9	10.5
Total	546.3	521.7	531.5	300.0	309.9	310.5
Contingent liabilities
Customs services	6.7	6.8	6.3	0.3	0.3	0.3
Rent guarantee	1.7	1.7	1.7	1.7	1.7	1.7
Total	8.4	8.5	8.0	2.0	2.0	2.0

Earnings per share

	Q2	Q1	Q4	Q3	Q2
Amounts in SEK M	2024	2024	2023	2023	2023
Earnings per share, basic, SEK	0.26	0.09	0.02	-0.17	-0.14
Earnings per share, diluted, SEK	0.26	0.09	0.02	-0.17	-0.14
Number of shares outstanding, basic, million	163.4	163.4	163.4	163.4	110.4
Number of shares outstanding, diluted, million	163.7	163.6	163.6	163.7	110.8

Consolidated statement of comprehensive income

Amounts in SEK M	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Profit/loss for the period	42.3	15.1	3.6	-8.9	-15.8
Items that have been or can be reclassified to profit or loss for the period
Translation differences	-6.4	21.1	-23.9	59.2	22.1
Other comprehensive income for the period	-6.4	21.1	-23.9	59.2	22.1
Comprehensive income for the period	35.9	36.2	20.3	26.7	6.3
Comprehensive income for the period attributable to:
Owners of the Parent Company	35.9	36.2	20.3	26.7	6.3

Alternative performance measures

Alternative perfor mance measures	Definition
PERFORMANCE RATIOS
EBITDA	Operating profit excluding depreciation on tangible and intangible assets.
Adjusted EBIT/EBITDA	EBIT/EBITDA adjusted for non-recurring items.
Change adjusted for exchange rate fluctu ations/change in local currency	Relationship between the period's profit/loss and the comparative period's profit/loss translated using the period's exchange rates.
Gross profit	Net sales less Cost of goods sold.
Operating expenses	Refers to selling expenses, administrative expenses and R&D expenses that are included in operating activities.
Items affecting com parability	Expenses of a non-recurring nature that are not part of operating activities, such as personnel costs related to restructurings.
Operating expenses adjusted for costs affecting comparability	Operating expenses minus items affecting comparability.
Operating profit/loss	Profit before financial items and tax.
Rolling twelve months	Financial KPIs and metrics based on the past twelve months.
MARGIN RATIOS

Gross profit margin	Gross profit as a percentage of net sales.
Operating margin	Operating profit as a percentage of net sales.

CAPITAL AND

FINANCIAL RATIOS
Equity/assets ratio	Equity as a percentage of total assets.
Net debt	Total borrowing and lease liabilities less cash and cash equivalents.

Alternative perfor mance measures	Definition
RETURN METRICS
Equity per share, before/after dilution	Equity attributable to owners of the Parent Company divided by the weighted number of shares before/after dilution on the balance sheet date. The dilutive effect can arise from the company's outstanding warrants or performance share plans.
Earnings per share, before/after dilution	Profit for the period attributable to owners of the Parent Company divided by the average number of shares outstanding before/after dilution during the period. The dilutive effect can arise from the company's outstanding warrants or performance share plans.
Equity per share, before/after dilution	Equity before and after dilution in relation to the average number of outstanding shares. The average number of outstanding shares is calculated as the average of the total number of shares outstanding at the end of the last four quarters. The metric shows equity in relation to the average number of outstanding shares.
OTHER METRICS
P/S ratio	Share price in relation to the company's net sales.
Net sales growth	Shows the percentage increase in the company's net sales during a given period compared to a previous period.
Order intake	The value of binding customer orders, invoiced service contracts and call-off under framework agreements. Does not include the anticipated future value of frameworks agreements.
Change in order intake adjusted for exchange rate fluctuations	Relationship between the period's order intake and the comparative period's order intake translated using the period's exchange rates.
Order backlog	The value of incoming orders that have not yet been invoiced.
Recurring revenue	Recurring revenue is the value of the provision of an ongoing contracted service or good over a contractual term, which is automatically renewed or extends beyond the next 12 months.

• Group key ratios

The Pricer Group presents some metrics that are not defined in accordance with IFRS (alternative performance measures). These metrics are used by management to assess the financial and operational development of the Group. Management believes that these alternative performance measures provide useful information about the Group's financial and operational development. However, these metrics are not necessarily comparable to similar metrics presented by other companies. The alternative performance measures thus have limitations as an analytical tool and should not be considered alone or as a substitute for the financial metrics presented in accordance with IFRS. The alternative performance measures have been taken from the Group's internal accounting and have not been audited.

Amounts in SEK M	Q2 2024	Q2 2023	FY 2023
PERFORMANCE RATIOS
Operating expenses
Selling expenses	-54.1	-54.5	-216.9
Administrative expenses	-32.1	-39.3	-162.4
Research and development costs	-8.5	-14.4	-65.5
Operating expenses	-94.7	-108.2	-444.8
MARGIN RATIOS
Net sales	644.0	687.2	2,681.2
of which recurring revenue	22.9	15.5	64.1
Gross profit	147.1	110.2	454.6
Gross margin, percent	22.8	16.0%	17.0%
Operating profit/loss	48.5	-0.3	15.4
Operating margin, percent	7.5%	0.0%	0.6%
CAPITAL AND FINANCIAL RATIOS
Equity/assets ratio
Total assets	2,142.0	1,923.9	1,995.9
Equity	1,028.9	715.3	957.2
Equity/assets ratio, percent	48%	37%	48%
RETURN METRICS
Equity per share, before/after dilution
Number of outstanding shares, millions	163.4	110.4	163.4
Dilution effect, millions	–	0.4	0.2
Equity	1,028.9	715.3	957.2
Equity per share, basic, SEK	6.30	6.48	5.86
Equity per share, diluted, SEK	6.29	6.46	5.85
Earnings per share, before/after dilution
Average number of outstanding shares, millions	163.4	110.4	137.1
Dilution effect, millions	–	0.4	0.2
Profit/loss for the period	57.4	-43.0	-48.3
Earnings per share, basic, SEK	0.35	-0.39	-0.35
Earnings per share, diluted, SEK	0.35	-0.39	-0.35

Pricer AB

Box 6302 SE-102 35 Stockholm Street address: Hälsingegatan 47 SE-113 31 Stockholm

CIN: 556427-7993 www.pricer.com