Chat with Filing

Ask questions about this document
Please log in or register to use the chat feature. Please register first.
IP - Solid performance in the second quarter - Attachment: Europris_ASA_Q2_2025_presentation.pdf

Company: Europris Date: 2025-07-10 Language: English Register to download
Loading document preview...
Document Preview Not Available

The file type (.pdf) cannot be displayed directly here.
Open Original File
Error loading document preview. Please try the 'Open Original File' link.
You're One Click Away From The Full Filing

Instantly access this document—and 2.8M more—for free. Select your preferred method:
Continue with Google Continue with Microsoft Continue with Facebook Continue with Amazon
# Q2 2025 presentation

10 July 2025

CEO Espen Eldal CFO Stina Byre

![](_page_0_Picture_3.jpeg)

## Disclaimer

![](_page_1_Picture_1.jpeg)

This presentation has been produced by Europris ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is the result of an effort of the Company to present certain information which the Company has deemed relevant in accessible format. This Presentation is not intended to contain an exhaustive overview of the Company's present or future financial condition and there are several other facts and circumstances relevant to the Company and its present and future financial condition that not been included in this Presentation. This Presentation may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without prior written consent of the Company.

This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates or intends to operate. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation to update any forward-looking statements or to conform these forward-looking statements to our actual results. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

By reviewing this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial reports of the Company and the disclosures therein. The distribution of this Presentation in certain jurisdictions may be restricted by law. Persons in possession of this Presentation are required to inform themselves about, and to observe, any such restrictions. No action has been taken or will be taken in any jurisdiction by the Company that would permit the possession or distribution of this Presentation in any country or jurisdiction where specific action for that purpose is required.

No shares or other securities are being offered pursuant to this Presentation. This Presentation does not constitute an offer to sell or form part of, and should not be construed as, an offer or invitation for the sale or subscription of, or a solicitation of an offer to buy or subscribe for, any shares or other securities in any jurisdiction, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company.

By reviewing this Presentation you agree to be bound by the foregoing limitations.

This Presentation speaks as of 10 July 2025. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation shall be governed by Norwegian law, and any disputes relating to hereto is subject to the sole and exclusive jurisdiction of Norwegian courts.

# The Europris group

![](_page_2_Picture_1.jpeg)

**A Nordic retail champion in the making…**

**…with strong concepts across 381 stores**

![](_page_2_Figure_4.jpeg)

# Financial highlights - second quarter

- Group sales of NOK 3.8bn, up 22.3%
	- One additional month with ÖoB this year and positive timing of Easter
	- Sales in segment Norway up by 11.7%
- Gross margin of 40.6%, down 1.3%-p
	- Dilutive impact from ÖoB and product mix from a higher share of consumables and campaigns, positive impact from unrealised currency
- Opex-to-sales ratio of 22.5%, down 1.1%-p
- Group EBIT of NOK 423 million (339)
	- EBIT of NOK 457m for segment Norway, a growth of 28.9%
	- EBIT-loss of NOK 34m for segment Sweden
- Net profit to parent of NOK 276m (266)
	- Positively impacted by accounting effects related to the acquisition of ÖoB last year, with a net effect of NOK 45 million
	- Unrealised loss on interest rate swaps of NOK 11 million (loss of 1)

![](_page_3_Picture_13.jpeg)

![](_page_3_Picture_14.jpeg)

# Financial highlights – first half

![](_page_4_Picture_1.jpeg)

- Group sales of NOK 6.7bn, up 31.3%
	- Four additional months with ÖoB this year
	- Strong development for segment Norway with 6.9% growth
- Gross margin of 39.8%, down 2.6%-p
	- Dilutive impact from ÖoB and negative impact from unrealised currency
- Opex-to-sales ratio of 26.2%, up 0.3%-p
	- Opex-to-sales declined by 0.6%-p for segment Norway
- Group EBIT of NOK 386 million (445)
	- EBIT of NOK 535m for segment Norway, a growth of 16.1%
	- EBIT-loss of NOK 149m for segment Sweden
- Net profit to parent of NOK 196m (313)
	- Positively impacted by accounting effects related to the acquisition of ÖoB last year, with a net effect of NOK 34 million
	- Unrealised loss on interest rate swaps of NOK 15 million (gain of 6)

![](_page_4_Picture_15.jpeg)

# Segment Norway continuing the positive trend

- Higher footfall to stores
- Strong execution of seasons and campaigns
- Good start for the upgraded the home & interior category
- Operational improvements
	- Enhanced service levels and well-stocked stores
	- Improved efficiency in the value chain
- Two new store openings, in Larvik and Holmlia (Oslo)
- Outperforming the market growth through May (June figures not yet available)

Market growth based on figures for shopping centres (Norsk Retail Hub) and broad variety retail (Statistics Norway)

![](_page_5_Picture_10.jpeg)

![](_page_5_Picture_11.jpeg)

# ÖoB integration progressing to plan – several milestones achieved

- Three category upgrades; kitchen, home & interior and DIY
	- Conceptual and visual elements
	- Spacing
	- Gradual introduction of Europris' non-food product range
- Customers responding well with uplift in sales in the categories and positive mix impact on the gross margin, although total average basket size remains overall unchanged
- Planning for revitalisation of ÖoB as a more attractive shopping destination, with full remodelling and upgrades of stores to attract new customers
- Successful go live with new ERP system

![](_page_6_Picture_8.jpeg)

![](_page_6_Picture_9.jpeg)

# Opened first fully remodelled ÖoB store

![](_page_7_Picture_1.jpeg)

- Opened the first fully remodelled store in Uddevalla 18 June
	- Significant conceptual upgrade
	- Aligned with Europris' store concept
	- Close to full harmonisation of non-food product range
- Very positive feedback from existing and new customers
- Too early to conclude but the results so far provides confidence in the turnaround plan
	- Higher sales from increase in both footfall and basket value
	- Improved margin from product mix as a result of growth in non-food sales
- Three more test stores to be remodelled in 2025, before accelerating implementation across the store portfolio in 2026 and 2027

![](_page_7_Picture_11.jpeg)

# Maintaining our high ambitions: grow ÖoB revenues to **SEK 5bn** by 2028, with **5% EBIT margin**

# **SEK 5bn 5% EBIT**

![](_page_8_Picture_2.jpeg)

**Category harmonisation and joint sourcing**

![](_page_8_Picture_4.jpeg)

**Improve customer experience**

![](_page_8_Picture_6.jpeg)

**Strengthen execution across the value chain**

# Financials

CFO Stina C Byre

![](_page_9_Picture_2.jpeg)

# Segment Norway – second quarter

![](_page_10_Picture_1.jpeg)

- Sales increase of 11.7%
	- The Europris chain had a like-for-like sales growth of 11.8%, positively impacted by a later Easter this year
	- Sales for pure play companies of NOK 127m up 2.3% adjusted for the divestment of Lunehjem
- Gross margin down 1.0%-p, excl. unrealised currency
	- Negative mix from higher share of sales of consumables and campaigns, impacted by timing of Easter
- Opex-to-sales ratio improved by 1.7%-p
	- Positive scale effects from timing of Easter and good cost control
- EBIT up by 28.9%

![](_page_10_Figure_10.jpeg)

2024

# Segment Norway – first half

## **Highlights Norway**

- Sales increase of 6.9%
	- The Europris chain had a like-for-like sales growth of 6.1%, mainly from higher footfall
	- Sales growth both for consumables and non-food, with a somewhat higher share of sales from consumables
	- Sales for pure play companies of NOK 271m up 2.8% adjusted for the divestment of Lunehjem
- Gross margin up 0.5%-p, excluding unrealised currency
- Opex-to-sales ratio improved by 0.6%-p
	- Operational improvements in the value chain
- Solid first half, with EBIT growth of 16.1%
- EBIT margin up 0.9%-p to 11.4%

![](_page_11_Figure_11.jpeg)

![](_page_11_Picture_12.jpeg)

## Segment Sweden – second quarter

![](_page_12_Picture_1.jpeg)

2024

2025

**Highlights Sweden**

- Sales of NOK 1.1bn
	- One additional month this year in reported group figures
- Like-for-like sales increase of 4.7% in local currency for the entire second quarter both years
	- Positive timing effects from a later Easter, and strengthened execution of sales and promotional activities
	- Still early days, but positive signs from upgraded categories and the pilot store
- Gross margin of 30.7%
- Finalised clearance sale of obsolete stock, with limited margin impact
- EBIT-loss of NOK 34m in the second quarter this year

0,7 1,1 **Sales, NOK bn** 32,4 30,7 **Gross margin, %** -16 -34 **EBIT, NOKm** 26,7 25,9 **Opex-to-sales, %**

**Key figures Sweden, second quarter**

# Segment Sweden – first half

**Highlights Sweden**

- Sales of NOK 2.0bn
	- Four additional months this year in reported group figures
- Like-for-like sales decline of 0.9% in local currency for the entire first half both years
	- Lower footfall
	- Higher campaign sales but at the expense of other sales and relatively stable basket size
- Gross margin of 29.9%
	- Negative impact from a higher share of sales from campaigns and clearance of obsolete stock that cannibalised on other sales
- EBIT-loss of NOK 149m for the first half this year

![](_page_13_Figure_10.jpeg)

2024

# Group financials – second quarter highlights

![](_page_14_Picture_1.jpeg)

## **Key figures Group, second quarter 2025**

| Sales NOK 3.8bn               | •<br>Sales increase of 22.3% -<br>positive impact from timing of Easter<br>•<br>One additional month with ÖoB this year                                                            |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gross margin 40.6%            | •<br>Gross margin decline of 1.3%-p<br>•<br>Dilutive impact from one additional month with ÖoB and product mix<br>•<br>Unrealised<br>gain from currency of NOK 10m (loss of 17)    |
| Opex-to-sales 22.5%           | •<br>Improvement of 1.1%-p<br>•<br>Scale effects from timing of Easter and good cost control                                                                                       |
| EBIT NOK 423m                 | •<br>Up NOK 84m (+24.8%)<br>•<br>Segment Norway up NOK 103m (+28.9%)<br>•<br>Segment Sweden had an EBIT-loss of NOK 34m in the quarter                                             |
| Net profit to parent NOK 276m | •<br>Increase of NOK 10m<br>•<br>Last year positively impacted by ÖoB transaction -<br>net effect of NOK 45m<br>•<br>NOK 11m unrealised<br>loss on interest rate swaps (loss of 1) |

# Group financials – first half highlights

![](_page_15_Picture_1.jpeg)

## **Key figures Group, first half 2025**

| Sales NOK 6.8bn               | •<br>Sales increase of 31.3%<br>•<br>Four additional months with ÖoB this year<br>•<br>Solid development for segment Norway with growth of 6.9%                                    |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Gross margin 39.8%            | •<br>Gross margin decline of 2.6%-p<br>•<br>Dilutive impact from four additional months with ÖoB this year<br>•<br>Unrealised<br>loss from currency of NOK 24m (gain of 9)         |
| Opex-to-sales 26.2%           | •<br>Up of 0.3%-p<br>•<br>Dilutive impact from segment Sweden offset by improved ratio for segment<br>Norway                                                                       |
| EBIT NOK 386m                 | •<br>Down NOK 59m (-13.4%)<br>•<br>Segment Norway up NOK 74m (+16.1%)<br>•<br>Segment Sweden had an EBIT-loss of NOK 149m for the first half                                       |
| Net profit to parent NOK 196m | •<br>Decline of NOK 117m<br>•<br>Last year positively impacted by ÖoB transaction -<br>net effect of NOK 34m<br>•<br>NOK 15m unrealised<br>loss on interest rate swaps (gain of 6) |

## Group – cash, debt and liquidity

![](_page_16_Picture_1.jpeg)

*Year-to-date comments*

- Cash from operating activities of NOK -40m (+208)
	- Change in net working capital of -568m (-297); normally negative in the first half due to seasonal fluctuations. More negative this year from timing of account payables, and planned inventory build-up to improve service level in stores and strategic purchases ahead of price increases.
- Net cash from financing activities less negative this year due to higher use of credit facilities in Sweden
	- Paid dividend of NOK 573m (523)
- Net change in cash of NOK -274m (-547)
- Net debt of NOK 5,260m (5,097)
	- NOK 1,843m excluding lease liabilities (1,520)
- Cash and liquidity reserves of NOK 1,111m (1,441)

| Group cash flow, NOK million                | Q2<br>2025 | Q2<br>2024 | YTD<br>2025 | YTD<br>2024 | FY<br>2024 |
|---------------------------------------------|------------|------------|-------------|-------------|------------|
| Cash from operating activities              | 503        | 488        | (40)        | 208         | 1,496      |
| -<br>of which change in net working capital | 13         | 94         | (568)       | (297)       | (211)      |
| Cash used in investing activities           | (25)       | (19)       | (66)        | (67)        | (119)      |
| Cash from financing activities              | (296)      | (527)      | (168)       | (688)       | (1,449)    |
| Net change in cash                          | 182        | (57)       | (274)       | (547)       | (73)       |
| Cash at beginning<br>of period              | 147        | 186        | 603         | 676         | 676        |
| Cash at end of period                       | 329        | 129        | 329         | 129         | 603        |
|                                             |            |            |             |             |            |
| Key financials                              | Q2<br>2025 | Q2<br>2024 | YTD<br>2025 | YTD<br>2024 | FY<br>2024 |
| Net debt excluding lease liabilities        | 1,843      | 1,520      | 1,843       | 1,520       | 720        |
| Cash and liquidity reserves                 | 1,111      | 1,441      | 1,111       | 1,441       | 2,244      |

# SBTi targets approved

![](_page_17_Picture_1.jpeg)

- The Science Based Targets initiative (SBTi) has approved Europris' science-based targets:
	- Net-zero greenhouse gas emissions across the value chain by 2050
	- Near-term and long-term targets for GHG and FLAG emissions
- Approval of the targets is an important step towards the group's overall ambition to provide affordable yet sustainable products for everyone
- The group actively works to prioritise products with reduced emissions and sustainable resource use
- An important next step is to develop a transition plan in line with the approved science-based targets

![](_page_17_Picture_8.jpeg)

![](_page_18_Picture_0.jpeg)

![](_page_18_Picture_1.jpeg)

# Our growth story

## Sales of **~NOK 14.6bn\***

Founded by Wiggo Erichsen

Acquired remaining 80% of ÖoB

Acquired remaining 33% of Lekekassen

Acquired 67% of Strikkemekka

Acquired 67% of Lekekassen

sourcing office (JV with Tokmanni) Listed on Acquired 20% of ÖoB

Nordic Capital

Oslo Børs

Acquired by

Opened Shanghai

\* Sales includes the Europris chain (directly operated and franchise stores), Lunehjem (consolidated as of March 2021, sold 1 January 2025), the Lekekassen group (consolidated as of August 2021), the Strikkemekka group (consolidated as of July 2022) and ÖoB (Runsvengruppen; consolidated as of May 2024) 20

Acquired by Terje Høili

Acquired by IK Investment Partners

# Celebrating 10 years on Oslo Stock Exchange

350

- Total shareholder return of 218% and average annual return of 12.3% over the first 10 years on Oslo Stock Exchange
	- Combined share price increase and attractive dividends
- OSEBX has returned 10.0% annually in the same period

![](_page_20_Figure_4.jpeg)

![](_page_20_Figure_5.jpeg)

# Outperforming in a stronger market

- Strong concept and solid market position has enabled the company to outperform the Norwegian market
- Strong consumer spending in the first half in both countries lowered interest rates and real wage growth should support a continued positive consumer sentiment
- The international geopolitical climate remains tense and uncertain – the group works to mitigate any potential adverse impacts
- Integration of ÖoB progressing according to plan with promising results so far on category upgrades and the first fully remodelled pilot store
- Remain confident in ambition to grow ÖoB sales to SEK 5 billion with 5% EBIT margin in 2028

![](_page_21_Picture_6.jpeg)

![](_page_21_Picture_7.jpeg)

![](_page_22_Picture_0.jpeg)

## Next event: Q3 presentation 30 October 2025

# Appendix

![](_page_24_Picture_0.jpeg)

![](_page_24_Picture_1.jpeg)

|  | Long-term financial and operational ambitions |  |
|--|-----------------------------------------------|--|
|  |                                               |  |

Sales days and store projects

Analytical information

Alternative Performance Measures (APM's)

# Long-term financial and operational ambitions - segment Norway

![](_page_25_Picture_1.jpeg)

| Growth               | Continue to deliver like-for-like growth above the market<br>over time                                                                                                                                      |  |  |  |  |  |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|
| Number of new stores | Target to open a net average of five new stores per year, depending on availability of locations which<br>meet strict return requirements, and the potential for relocations, expansions and modernisations |  |  |  |  |  |
| EBITDA               | Increase EBITDA margin over time from improved sourcing and a more cost-effective value chain                                                                                                               |  |  |  |  |  |
| Dividend             | Dividend policy of paying out 50-60% of net profit while maintaining an efficient balance sheet                                                                                                             |  |  |  |  |  |

![](_page_26_Picture_0.jpeg)

## Sales days and store projects – segment Norway

## **Number of sales days**

| Year | Q1 | Q2 | Q3 | Q4 | Total |
|------|----|----|----|----|-------|
| 2024 | 75 | 73 | 79 | 80 | 307   |
| 2025 | 76 | 71 | 79 | 80 | 306   |
| 2026 | 76 | 72 | 79 | 80 | 307   |

## •**Number of store projects (franchise projects in brackets)**

| 2024                           | Q1 | Q2 | Q3 | Q4 | Total |
|--------------------------------|----|----|----|----|-------|
| New stores                     | -  | -  | -  | 1  | 1     |
| Store<br>closures              | -  | -  | -  | -  | -     |
| Relocations<br>/<br>expansions | 3  | 6  | 3  | 2  | 14    |
| Modernisations                 | 5  | 2  | 2  | -  | 9     |

| 2025E                          | Q1 | Q2 | Q3 | Q4 | Total |
|--------------------------------|----|----|----|----|-------|
| New stores                     | 3  | 2  | 1  | 2  | 8     |
| Store<br>closures              | 1  | -  | -  | -  | 1     |
| Relocations<br>/<br>expansions | 1  | 2  | 2  | 1  | 6     |
| Modernisations                 | 4  | 3  | -  | -  | 7     |

![](_page_27_Picture_0.jpeg)

# Sales days and store projects – segment Sweden

## **Number of sales days**

| Year | Q1 | Q2 | Q3 | Q4 | Total |
|------|----|----|----|----|-------|
| 2024 | 90 | 91 | 92 | 91 | 364   |
| 2025 | 89 | 91 | 92 | 91 | 363   |
| 2026 | 89 | 91 | 92 | 91 | 363   |

## •**Number of store projects**

| 2024                           | Q1 | Q2 | Q3 | Q4 | Total |
|--------------------------------|----|----|----|----|-------|
| New stores                     | -  | -  | -  | -  | -     |
| Store<br>closures              | -  | -  | -  | 1  | 1     |
| Relocations<br>/<br>expansions | -  | -  | -  | -  | -     |
| Modernisations                 | -  | 1  | -  | -  | 1     |

| 2025E                          | Q1 | Q2 | Q3 | Q4 | Total |
|--------------------------------|----|----|----|----|-------|
| New stores                     | -  | -  | -  | -  | -     |
| Store<br>closures              | -  | 1  | -  | -  | 1     |
| Relocations<br>/<br>expansions | -  | -  | -  | -  | -     |
| Modernisations                 | 1  | 1  | 2  | 1  | 5     |

## Analytical information<sup>1</sup>– segment Norway

![](_page_28_Picture_1.jpeg)

| Seasonality    | •<br>As a rule-of-thumb, the Easter impact is approximately NOK 65-80 million in revenue<br>and NOK 13-16 million in EBITDA                                                                                                                                                                                                                            |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Quarterly Opex | •<br>Europris stores: as a rule-of-thumb, Opex in quarter one year earlier + inflation + NOK 1.6-1.7 million<br>per extra directly operated store (DOS)                                                                                                                                                                                                |
| Capex          | •<br>New store –<br>NOK 2.4 million per store (average of five per year)<br>•<br>Relocation –<br>NOK 1.7 million per store (average of 10 per year)<br>•<br>Modernisation –<br>NOK 1.5 million per store (average of 10 per year)<br>•<br>Category development –<br>NOK 15-25 million per year<br>•<br>IT and maintenance –<br>NOK 30 million per year |
| Rent           | •<br>Majority of contracts are CPI-adjusted<br>•<br>Recognised under IFRS-16 leases                                                                                                                                                                                                                                                                    |

# Alternative performance measures (APMs)

![](_page_29_Picture_1.jpeg)

**APMs are used by Europris for annual and periodic financial reporting to provide a better understanding of the group's financial performance. APMs are considered as well-know and frequently used by users of the financial statements and are also used in internal reporting and by management to measure operating performance.** 

## **Sales**

Sales is the same as the IFRS definition of total operating income.

### **Gross profit / gross margin**

Gross profit is defined as Total operating income minus the cost of goods sold (COGS). The gross profit represents revenue that the group retains after incurring the direct costs associated with the purchase of the goods. Gross margin is defined as gross profit divided by total revenue and is useful for benchmarking direct costs associated with the purchase of the goods vs total revenues.

### **Opex / Opex-to-sales ratio**

Operating expenses (Opex) is the sum of employee benefits expense and other operating expenses. It is useful to look at cost of these two components combined, as they compose a large part of the fixed operating costs. The Opexto-sales ratio divides the Opex by Total operating income and is useful for benchmarking this cost base vs the development in sales.

### **EBITDA / EBITDA margin**

EBITDA is earnings before interests, tax, depreciation of property, plant and equipment and right-of-use assets and amortisation of other intangibles. EBITDA is a well-known and widely used term among users of the financial statements and is useful when evaluating operational efficiency on a more variable cost basis as they exclude amortisation and depreciation expense related to capital expenditure. EBITDA margin is EBITDA divided by Total operating income and is useful for benchmarking this profitability parameter vs the development in sales.

## **EBIT / EBIT margin**

EBIT is earnings before interest and taxes and is the same as the IFRS definition of operating profit. EBIT is a wellknown and widely used term among the users of the financial statements and is useful when evaluating operational profitability. EBIT margin is EBIT divided by Total operating income, and thus the same as Operating profit divided by Total operating income.

### **Working capital**

Net change in working capital is the sum of change in inventories and trade receivables and change in other receivables less the sum of change in accounts payable and other current liabilities. Net change in working capital is a well-known and widely used term among the users of the financial statements and is useful for measuring the group's liquidity, operational efficiency and short-term financial conditions.

### **Capital expenditure**

Capital expenditure (Capex) is the sum of purchases of fixed assets and intangible assets as used in the cash flow. Capex is a well-known and widely used term among the users of the financial statements and is a useful measure of investments made in the operations when evaluating the capital intensity.

### **Financial debt / net debt**

Financial debt is the sum of borrowings and lease liabilities. Financial debt is useful to see total debt as defined by IFRS. Net debt is financial debt less cash.

### **Cash and liquidity reserves**

Cash and liquidity reserves is defined as available cash plus available liquidity through overdraft and credit facilities. This measure is useful to see total funds available short term.

### **Europris: Total chain sales**

Total chain sales are sales from all chain stores, that is both directly operated and franchise stores. This KPI is an important measure of the performance of the total Europris chain and considered useful in order to understand the development of the entire chain, regardless of ownership structure of stores.

### **Segment Norway**

The Norway segment includes Europris and the pure play companies Lekekassen and Strikkemekka.

## **Segment Sweden**

The Sweden segment includes the ÖoB chain.

## **Pure play**

Pure play includes the Lekekassen group and the Strikkemekka group.

### **Directly operated store**

Directly operated store means a store owned and directly operated by the group.

### **Franchise store**

Franchise store means a store operated by a franchisee under a franchise agreement with the group.

## **Chain**

Chain means the sum of all stores under the brand name Europris and ÖoB. Europris has both directly operated stores and franchise stores while ÖoB only has directly operated stores.

### **Like-for-like (LFL) sales growth**

LFL growth is defined as the growth in total chain sales for stores that have been open for every month of both the previous and the current calendar year. LFL is calculated in constant currency.

## **Organic growth**

Organic growth is defined as the growth excluding any significant structural changes (acquisitions or sale of companies).

## **Constant currency**

Constant currency is the exchange rate which the group uses to eliminate the effect of exchange rates fluctuations when calculating financial performance numbers.