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Pricer

Interim / Quarterly Report Jul 20, 2021

3098_ir_2021-07-20_fe1d1ae0-a9ec-4cc9-8b7b-2da71d2c3bde.pdf

Interim / Quarterly Report

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Q2 • INTERIM REPORT • January–June 2021

SEK 389.0 M

Net sales in the quarter (+35%)

5.8%

Operating margin in the quarter

SEK 15.2 M

Net profit for the quarter

Net sales growth of 35 percent and strong profitability improvement

Q2 2021

  • Net sales amounted to SEK 389.0 M (287.6) an increase of 35 percent compared to the same period last year.
  • Operating profit amounted to SEK 22.6 M (3.5), which corresponds to an operating margin of 5.8 percent (1.2).
  • Order intake was SEK 408 M (324), an increase of 26 percent compared to the same period last year.
  • Order backlog amounted to SEK 563 M (903), of which the majority is expected to be delivered in 2021.
  • Profit for the period was SEK 15.2 M (-6.9).
  • Earnings per share (basic and diluted) were SEK 0.14 (-0.06).
  • Cash flow from operating activities was SEK -18.2 M (21.3).

H1 2021

  • Net sales amounted to SEK 781.9 M (513.6) an increase of 52 percent compared to the same period last year.
  • Operating profit amounted to SEK 39.9 M (10.8), which corresponds to an operating margin of 5.1 percent (2.1).
  • Order intake was SEK 850 M (695), an increase of 22 percent compared to the same period last year.
  • Profit for the period was SEK 32.9 M (8.0).
  • Earnings per share (basic and diluted) were SEK 0.30 (0.07).
  • Cash flow from operating activities was SEK -80.8 M (23.5).
Amounts in SEK M unless Q2 Q2 6 mths 6 mths Rolling Full year
otherwise stated 2021 2020 2021 2020 4 Q 2020
Order intake 408 324 850 695 1 744 1 588
Net sales 389,0 287,6 781,9 513,6 2 027,8 1 759,5
Gross margin, % 24,5% 22,9% 24,2% 26,6% 23,5% 24,0%
Operating profit 22,6 3,5 39,9 10,8 184,3 155,2
Operating margin, % 5,8% 1,2% 5,1% 2,1% 9,1% 8,8%
Cash flow 1) -18,2 21,3 -80,8 23,5 160,6 264,9
Net profit for the period 15,2 -6,9 32,9 8,0 152,4 127,5
Earnings per share, SEK 2) 0,14 -0,06 0,30 0,07 1,38 1,16
1) Cash flow
from operating activities

2) Basic earnings per share

Good conditions for continued high market growth in the coming years

Operating profit, SEK M

Comments from CEO Helena Holmgren

Net sales in the second quarter amounted to SEK 389 M (288), which means an increase of 35 percent compared to the same period last year. Excluding currency effects net sales grew 49 percent, and in terms of volume, during the quarter, we delivered twice as many digital labels as we did during the corresponding period the previous year. Net sales were distributed over a large number of customers with a wide geographic spread and market activity in all important markets remain high.

Paper labels are increasingly being replaced by digital labels, but despite this, the penetration rate of ESL (Electronic Shelf Label) systems remains very low from a global retail perspective. The low degree of penetration in combination with the fact that pricing of goods is one of the most central processes in store operations constitutes good conditions for continued high market growth in the coming years.

Order intake in the second quarter amounted to SEK 408 M (324), which is in line with the last three quarters and corresponds to an increase of 26 percent compared to the previous year. In addition to the steadily growing flow of small and medium-sized orders that are generated by either our local sales organizations or our global network of partners, there are regular call-off orders from the framework agreements that were communicated in recent years. With several parallel framework agreements, we have a smoother and more stable inflow of orders than we have seen historically, even though large customer projects can create lumpiness between quarters and may also do so going forward. The order backlog increased marginally during the quarter and amounted at the end of June to SEK 563 M.

The gross margin of 24.5 percent (22.9) and the operating profit of SEK 22.6 M (3.5) continue to be under pressure from high component and logistics costs. Otherwise, the gross margin is primarily a result of the product and contract mix that was invoiced in the quarter. We are continuing to invest in a strengthened market presence, which forms the basis for a closer dialogue with our customers and a broader service offering. Combined with a continued high rate of innovation in product development, this has increased the operating expenses, primarily in the form of staff and consultants.

We are in a very exciting phase of the company's now 30-year history. In addition to providing the market's most stable and high-performing ESL system, we offer our customers a broad palette of services and software-based solutions. Using our cloud-based platform Pricer Plaza as a starting point, we can assist with everything from operations and monitoring of the ESL system to analysis based on real-time information, thus ensuring efficient performance of prioritized in-store tasks. We are still in an early phase of this development, but we are already seeing results from our investments in the form of increased service and licensing revenue, albeit at continued low levels.

The cash flow is a result of timing effects between incoming and outgoing payments. The high capital tie-up at the end of the second quarter is attributable to the high rate of production and delivery, combined with longer transport times than normal. In the second quarter we also initiated investments into more scalable production solutions that we intend to continue with in the fall to meet the increased demand we are experiencing in the market. As communicated previously, we advise that cash flow should always be analyzed over time.

As country borders open and travel restrictions are lifted, we look forward to more face-to-face meetings during the second half of the year. I would like to extend once again a warm "Thank You" to our fantastic employees and partners for the endurance and problem-solving abilities that they have demonstrated since the start of the pandemic. I truly admire the work that made the company's great development to date possible, and I look forward to the exciting journey and growth that lies ahead of us.

Helena Holmgren President and CEO

Macrotrends for store digitalization continue to be strong and global

Market development

Macrotrends for store digitalization continue to be strong and global. In addition to a sharp increase in e-commerce, the pandemic has resulted changed behavioral patterns in terms of how and where consumers are shopping. Depending on the degree of lock-down in each country, the trends are unfolding at varying speeds and sometimes in different directions, but the emergence of a hybrid model between physical and digital channels is common to all markets. The new reality means that retail is facing a major transformation as the capacity for ecommerce needs to be expanded, while at the same time the attractiveness of the physical store needs to increase.

Consumers' online shopping experience with regards to, for example, availability, convenience and flexibility is increasingly impacting the expectations of what constitutes a good shopping experience in stores. By offering well-stocked shelves, synchronized prices across channels, and increased availability of store staff for personal service, physical stores are trying to attract consumers to come back to the store. This in turn increases the need for system support, such as an ESL system, to automate and streamline processes as well as the flow of data.

The tradition among retailers to design their own technology solutions combined with an increased expectation on use-cases to be supported by the ESL system result in increasingly complex procurement processes and integration projects. In addition to the increased technical complexity, requirements on data security, sustainability and quality are also becoming higher. A consequence of this development is that it raises the bar for 'good enough' ESL-solutions, thus making it increasingly difficult for new market players to establish themselves on a global basis.

The pandemic is continuing in many areas around the world, even if the restrictions have been lifted in several of our most important markets. The largest impact during the second quarter continues to be in the supply and logistics chains. The absence of air traffic has resulted in temporary increases in transport times and shipping costs for both air and sea transports. There also continues to be a global shortage of a number of standard components, which makes production planning difficult and results in higher manufacturing costs. Pricer works with long forecasts in its supply chain, which has made it easier to maintain a good rate of production even if the lead times to customers are several weeks longer than normal.

Why invest in Pricer?

  • Strong underlying growth in a market with a low penetration rate of ESL systems. Digitalization of physical stores is viewed as necessary in order to maintain a competitive edge.
  • Best system in the market. Unique functionality and a technological solution that is difficult to copy. Based on reliable, scalable, energy-efficient and interference-free communication.
  • Blink functionality of the labels combined with dynamic positioning of products in the store enables not only cost reductions but also increased sales and improved customer satisfaction.
  • Long-standing track record of producing solutions that work well in retail.
  • Strong balance sheet enables continued innovative strength.
  • Global presence with a large installed base.

Europe, Middle East & Africa

Americas

Asia & the Pacific

Order intake Q2 and H1 2021

Q2 2021

Order intake for the second quarter amounted to SEK 408 M (324), an increase of 26 percent compared to the same quarter last year. Adjusted for exchange rate fluctuations, order intake rose 38 percent. Order intake is spread across a large number of customers on several geographic markets, with Canada, France and Norway the largest individual contributors. Order intake for the quarter includes an order from a leading Canadian retail chain of SEK 57 M. Pricer's Norwegian retailer StrongPoint AS signed a new framework agreement in the quarter with Coop Norway with an estimated value for Pricer of around SEK 140 M. Orders under this agreement will be placed and delivered until December 2022, which means that the agreement did not have a material impact on the order intake for the second quarter.

Order backlog as per June 30, 2021, amounted to SEK 563 M (903), of which the majority is expected to be delivered in Q3 and Q4 2021.

H1 2021

Order intake amounted to SEK 850 M (695) for the first six months, an increase of 22 percent compared to the same period last year. Adjusted for exchange rate fluctuations, order intake rose 35 percent. Canada, France, and Norway comprise the largest countries. The order intake has a wide geographic spread and includes several new customers that signed during the year.

Net sales and profit in Q2 and H1 2021

NET SALES BY GEOGRAPHICAL REGION

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2021 2020 2021 2020 2020
Europe, Middle East & Africa 239,2 114,4 481,3 309,9 839,5
Americas 127,8 164,5 257,5 193,6 883,0
Asia & the Pacific 22,0 8,9 43,1 10,0 37,0
Total net sales 389,0 287,6 781,9 513,6 1 759,5

NET SALES AND PROFIT

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2021 2020 2021 2020 2020
Net sales 389,0 287,6 781,9 513,6 1 759,5
Cost of goods sold -293,8 -221,8 -592,7 -376,8 -1 336,4
Gross profit 95,1 65,9 189,2 136,7 423,1
Gross margin, % 24,5% 22,9% 24,2% 26,6% 24,0%
Operating expenses -74,2 -62,1 -148,6 -127,6 -282,1
Other income and expenses 1,7 -0,2 -0,7 1,8 14,2
Operating profit 22,6 3,5 39,9 10,8 155,2
Operating margin, % 5,8% 1,2% 5,1% 2,1% 8,8%

ADJUSTED FOR F/X

Reported
current Reported Adjusted
Amount in SEK M unless otherwise stated period change for F/X
Second quarter compared with the same period last year
Net sales 389,0 35% 49%
Cost of goods sold -293,8 32% 48%
Gross profit 95,1 44% 53%
Operating expenses -74,2 19% 23%
Other income and expenses 1,7 - -
Operating profit 22,6 548% 659%
January - June compared with the same period last year
Net sales 781,9 52% 67%
Cost of goods sold -592,7 57% 76%
Gross profit 189,2 38% 42%
Operating expenses -148,6 16% 19%
Other income and expenses -0,7 - -
Operating profit 39,9 268% 286%

Q2 2021

Net sales amounted to SEK 389.0 M (287.6) in the quarter, an increase of 35 percent compared to the same quarter last year. Adjusted for exchange rate fluctuations, net sales increased by 49 percent. Net sales in Q2 2021 were spread across a large number of customers. The majority of the sales occurred in Canada, France and Norway.

Gross profit amounted to SEK 95.1 M (65.9), and the gross margin amounted to 24.5 percent (22.9) for the quarter. The change in the gross margin continued to be primarily an effect of the product and contract mix. Access to shipping solutions, both air and sea, has continued to be a challenge in the second quarter, which, combined with the shortage of some standard components that are used in several industries, has impacted both lead times and prices. The majority of the company's costs for goods sold were in USD, while net sales were generated primarily in USD and EUR. The currency effects had a negative impact on gross profit compared to last year.

Operating expenses increased to SEK -74.2 M (-62.1) in the quarter, an increase of 19 percent compared to the same quarter last year. The increase was primarily a result of increased costs for staff and consultants related to investments in product development, an enhanced market presence to enable a broader customer service offer, and IT infrastructure. The increase is offset somewhat by lower costs for share-based compensation during the quarter. Operating expenses are primarily in SEK, but they are also in EUR and USD.

Other income and expenses amounted to SEK 1.7 M (-0.2) and consisted of the net effect of realized and unrealized currency revaluations of trade receivables and trade payables.

Operating profit amounted to SEK 22.6 M (3.5), which corresponded to an operating margin of 5.8 percent (1.2). An increase in the gross profit led to an increase in both the operating profit and the operating margin.

Financial items, primarily consisting of currency revaluation of balance sheet items such as cash and cash equivalents, had a negative impact on the quarter and amounted to SEK -3.2 M (-9.7), which was largely due to negative translation effects on currency accounts in USD.

Tax for the quarter amounted to SEK -4.2 M (-0.7), of which SEK -3.4 M (0.2) refers to deferred tax and SEK -0.7 M (-0.9) to current tax. The current tax rate amounted to -4 percent (+14), and the reported total tax rate amounted to -22 percent (+11). A deferred tax asset is reported for all of the parent company's tax loss carry-forwards from the end of 2020; therefore, the reported total tax rate for 2021 will be higher than in previous years. Deferred tax assets related to capitalized losses carried forward amounted in the balance sheet on June 30, 2021, to SEK 57.5 M (70.4).

Profit for the period was SEK 15.2 M (-6.9). The increase compared to the last year can be attributable to an increase in operating profit.

Translation differences in other comprehensive income of SEK -4.9 M (-19.8) consisted of currency revaluation of net assets in foreign operations.

H1 2021

Net sales amounted to SEK 781.9 M (513.6) in H1, an increase of 52 percent compared to the same period last year. Adjusted for exchange rate fluctuations, net sales increased by 67 percent. Net sales were spread across a large number of customers. The majority of the sales occurred in France, Canada, Norway and the USA.

Gross profit amounted to SEK 189.2 M (136.7), and the gross margin amounted to 24.2 percent (26.6) for the period. The change in the gross margin continued to be primarily a consequence of the product and contract mix as well as the increased component and logistics costs. The majority of the company's costs for goods sold were in USD, while net sales were generated primarily in USD and EUR. The currency effects on gross profit were negative compared to last year.

Operating expenses increased to SEK -148.6 M (-127.6) in the period, an increase of 16 percent compared to the same period last year. The increase was primarily a result of increased costs for staff and consultants related to product development, an enhanced market presence, and investments in a broader customer service offer.

Other income and expenses amounted to SEK -0.7 M (1.8) for the period and consisted of the net effect of realized and unrealized currency revaluations of trade receivables and trade payables.

Operating profit amounted to SEK 39.9 M (10.8), which corresponded to an operating margin of 5.1 percent (2.1). An increase in the gross profit led to an increase in the operating profit and the operating margin.

Financial items, which consist primarily of currency revaluation of balance sheet items such as cash and cash equivalents, impacted the period positively and amounted to SEK 1.5 M (-1.5).

Tax for the period amounted to SEK -8.5 M (-1.4), of which SEK -6.6 M (0.3) refers to deferred tax and SEK -1.9 M (-1.7) to current tax. The current tax rate amounted to -5 percent (-18), and the reported total tax rate amounted to -21 percent (-15). A deferred tax asset is reported for all of the parent company's tax loss carry-forwards from the end of 2020; therefore, the reported total tax rate for 2021 will be higher than in previous years.

Profit for the period was SEK 32.9 M (8.0). The increase compared to last year can be attributable to an increase in operating profit.

Translation differences in other comprehensive income of SEK 4.7 M (1.3) consisted of currency revaluation of net assets in foreign operations.

Cash flow, investments and financial position

Q2 2021

Cash flow from operating activities amounted to SEK -18.2 M (21.3) for Q2. The change in working capital during the quarter had a negative impact on cash flow from operating activities of SEK -51.3 M (8.6). The high production rate to deliver the order backlog combined with longer lead times for transport resulted in increased inventory and receivables from suppliers (for component purchases that are re-invoiced). Trade payables attributable to production also increased during the quarter. Since there is a major timing effect from operating activities, the cash flow should be analyzed over time.

Cash flow from investing activities amounted to SEK -26.1 M (-15.9) in the second quarter and consisted primarily of capitalized development expenditures of SEK -13.6 M (-14.0) for continued investments in product development and investments in property, plant and equipment of SEK -12.5 M (-2.0) attributable primarily to production equipment and investments in enhanced production capacity.

Cash flow from financing activities amounted to SEK -56.0 M (-44.7) during the second quarter and referred to the dividend of SEK -55.0 M (-44.1), amortization of lease liabilities of SEK -3.0 M (-2.8) and a decrease in treasury shares of SEK 2.1 M (2.1). According to a resolution by the Annual General Meeting, the dividend was divided into two payouts of SEK 0.50 (0.40) per share each, which are paid in May and November 2021.

Exchange rate differences in cash and cash equivalents amounted to SEK -3.5 M (-7.9), which was a result of negative translation effects on currency accounts in USD and EUR.

Cash and cash equivalents amounted to SEK 86.1 M (132.9) on June 30, 2021. In addition to cash and cash equivalents, the company had on June 30, 2021, an unutilized overdraft facility of SEK 50 M (50).

H1 2021

Cash flow from operating activities amounted to SEK -80.8 M (23.5) for the period. The change in working capital had a negative impact of SEK -140.8 M (-10.4) on cash flow from operating activities, primarily due to an increase in inventory, which reduced cash flow, and an increase in trade payables, which improved cash flow. Trade payables were also paid during the year for large deliveries that occurred in Q4 2020, where customer payments were made before the end of the year.

Cash flow from investing activities amounted to SEK -39.3 M (-37.2) during the first six months and consisted primarily of capitalized development expenditures of SEK -25.3 M (-28.6) and investments in property, plant and equipment of SEK -14.0 M (-8.6) attributable to production equipment.

Cash flow from financing activities amounted to SEK -58.9 M (-47.6) during the first six months and referred to the dividend of SEK -55.0 M (-44.1), amortization of lease liabilities of SEK -6.0 M (-5.6), and a decrease in treasury shares of SEK 2.1 M (2.1).

Exchange rate differences in cash and cash equivalents amounted to SEK 2.7 M (-0.1).

Equity

ISSUED AND OUTSTANDING SHARES
Stated in thousands of shares Class A Class B Total
Outstanding shares at the beginning of the year 226 110 746 110 972
Issued and converted shares in the year - - -
Issued at the end of the period 226 110 746 110 972
Treasury shares - -648 -648
Outstanding shares at end of period 226 110 098 110 324
Class A share carries five votes and class B share carries one vote
From the 2018 performance-based share plan, 228,858 Class B shares were transferred free of
charge in June 2021 to the participants. Due to the fulfillment of the performance-based share
plan, Pricer decreased its treasury shares by 228,858 Class B shares.
Pricer's holdings of treasury shares amounted on June 30, 2021, to 648,278 (477,136) Class B
shares. These shares are held to be able to meet obligations on matching and performance
shares under the outstanding performance-based share plans.
Transferred free of
Performance Maximum of charge to the
share plan (LTI)
LTI 2019
shares
240 000
Vesting period
Jun 2019 - May 2022
participants
Jun 2022
LTI 2020 330 000 Jun 2020 - May 2023 Jun 2023
LTI 2021 279 000 Jun 2021 - May 2024 Jun 2024
Employees
The average number of employees during the second quarter was 169 (145), and the number of
employees at the end of the period was 173 (147). The average number including hired staff
and consultants was 203 (171) in the second quarter and 207 (174) at the end of the period.
The organization was strengthened in several areas, such as customer project management,
support, product development, and sales. We have strengthened our presence in a number of
geographic markets with the aim of managing both the increased demand and the growing
installed customer base.
Parent Company
The Parent Company's net sales amounted to SEK 789.0 M (579.9), and the profit for the period
amounted to SEK 32.1 M (-2.3). The Parent Company's cash and cash equivalents amounted to
SEK 40.8 M (108.9) 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 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
Transferred free of
Performance Maximum of charge to the
share plan (LTI) shares Vesting period participants
LTI 2019 240 000 Jun 2019 - May 2022 Jun 2022
LTI 2020 330 000 Jun 2020 - May 2023 Jun 2023
LTI 2021 279 000 Jun 2021 - May 2024 Jun 2024

Employees

Parent Company

Risks and uncertainty factors

installations or large fluctuations in exchange rates can have a significant effect in any given quarter. More information regarding risks is available in the 2020 Annual Report; see page 32 and Note 20.

Effects from the coronavirus

Pricer, like other global companies, is affected by pandemics, and during the years 2020–2021 the company was affected by COVID-19. Access to standard components that are used by several different industries is restricted, which has affected both lead times and prices. Access to logistics solutions has also been significantly reduced due to the ongoing pandemic.

Uncertainty about the course of the pandemic is still high. Pricer is continuing to follow the guidelines and recommendations set up in each country where the company is active. The health of the staff has continued to be Pricer's top priority.

Forecast

No forecast is provided for 2021.

New accounting principles

The same accounting principles and bases for calculation were applied for the Group and the Parent Company as in the latest annual report.

Events during the second quarter

Pricer AB's Annual General Meeting (AGM) was held on April 29, 2021. Given the extraordinary situation caused by the COVID-19 pandemic, the meeting was held solely via absentee ballot, without physical participation. The AGM resolved on the re-election of Board members Knut Faremo, Hans Granberg, Jonas Guldstrand and Jenni Virnes and the new-election of Göran Sundholm. Knut Faremo was re-elected Chair of the Board of Directors. For more detailed information on the content of the decisions, please refer to the complete notification of the AGM and the complete proposals on the company's website, www.pricer.com.

Events after the end of the reporting period

On July 8, 2021, Pricer signed a temporary credit agreement with Nordea for an additional SEK 50 M, increasing the total credit facility to SEK 100 M. The agreement is valid until December 31, 2021, and has primarily been signed to manage working capital needs driven by high demand combined with temporarily longer lead times as a result of limited access to shipping and some standard components.

Otherwise, no significant events occurred after the end of the reporting period.

The next interim report will be published on October 22, 2021

Financial Calendar

October 22, 2021 Interim Report January–September 2021 February 11, 2022 Year-End Report 2021

The undersigned hereby certify that semi-annual report for the Parent Company and the Group provides a true and fair view of the results of the operations, financial position and performance of the Group and describes the risks and significant uncertainties to which the Parent Company and other companies in the Group are exposed.

Stockholm, July 20, 2021

Pricer AB (publ)

Knut Faremo Chair

Hans Granberg Jenni Virnes

Jonas Guldstrand Göran Sundholm

Helena Holmgren President and CEO

This report has not been subject to an audit.

Every care has been taken in the translation of this document. In the event of discrepancies, the Swedish original will supersede the English translation.

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 persons mentioned below for publication on July 20, 2021, at 8:30 AM CET.

For more information, please contact: Helena Holmgren, President and CEO Tel: +46 (0)702 870 068 Email: [email protected]

Financial Reporting

CONSOLIDATED INCOME STATEMENT IN SUMMARY

Amounts in SEK M Q2
2021
Q2
2020
6 mths
2021
6 mths
2020
Full year
2020
Net sales 389,0 287,6 781,9 513,6 1 759,5
Cost of goods sold -293,8 -221,8 -592,7 -376,8 -1 336,4
Gross profit 95,1 65,9 189,2 136,7 423,1
Selling expenses -39,0 -32,8 -75,1 -71,5 -148,7
Administrative expenses -19,5 -16,6 -42,9 -33,7 -78,0
Research and development costs -15,8 -12,7 -30,5 -22,4 -55,4
Other income and expenses 1,7 -0,2 -0,7 1,8 14,2
Operating profit 22,6 3,5 39,9 10,8 155,2
Net financial items -3,2 -9,7 1,5 -1,5 -21,5
Net profit before tax 19,4 -6,2 41,4 9,4 133,6
Income tax -4,2 -0,7 -8,5 -1,4 -6,2
Net profit for the period 15,2 -6,9 32,9 8,0 127,5
Net profit for the period attributable to:
Owners of the Parent Company 15,2 -6,9 32,9 8,0 127,5
EARNINGS PER SHARE
Q2 Q2 6 mths 6 mths Full year
2021 2020 2021 2020 2020
Basic earnings per share, SEK 0,14 -0,06 0,30 0,07 1,16
Diluted earnings per share, SEK 0,14 -0,06 0,30 0,07 1,15
Number of shares before dilution, millions 110,2 110,3 110,1 110,4 110,3
Diluted number of shares, millions 111,0 111,4 111,0 111,4 111,2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Amounts in SEK M Q2
2021
Q2
2020
6 mths
2021
6 mths
2020
Full year
2020
Net profit for the period 15,2 -6,9 32,9 8,0 127,5
Items that are or may be reclassified to profit or loss for the period
Translation differences -4,9 -19,8 4,7 1,3 -19,1
Other comprehensive income for the period -4,9 -19,8 4,7 1,3 -19,1
Net comprehensive income for the period 10,3 -26,6 37,6 9,3 108,4
Net comprehensive income for the period attributable to:

CONSOLIDATED BALANCE SHEET IN SUMMARY

Amounts in SEK M Jun 30
2021
Mar 31
2021
Dec 31
2020
Sep 30
2020
Jun 30
2020
ASSETS
Intangible assets 349,3 346,6 338,0 352,3 346,5
Property, plant and equipment 40,9 30,5 30,3 30,0 28,7
Right-of-use assets 40,0 43,3 43,7 46,3 48,5
Deferred tax assets 68,4 71,8 75,0 77,4 76,7
Total non-current assets 498,6 492,2 487,0 506,0 500,4
Inventories 444,3 274,2 301,5 464,3 413,9
Trade receivables 295,1 263,2 235,6 312,6 155,2
Prepaid expenses and accrued income 17,6 13,3 9,5 13,4 17,2
Other current receivables 269,5 133,8 98,5 200,9 335,0
Cash and cash equivalents 86,1 189,9 262,4 150,5 132,9
Total current assets 1 112,6 874,4 907,5 1 141,8 1 054,2
TOTAL ASSETS 1 611,2 1 366,6 1 394,5 1 647,7 1 554,6
EQUITY AND LIABILITIES
EQUITY
Share capital 111,0 111,0 111,0 111,0 111,0
Other capital contributions 392,8 394,9 393,2 408,3 405,5
Reserves 20,5 25,4 15,8 36,7 36,2
Accumulated profits including profit for the year 221,8 316,8 299,1 249,0 179,7
Shareholder's equity attributable to the Parent Company's
shareholders 746,1 848,1 819,0 805,0 732,4
LIABILITIES
Non-current provisions 26,6 25,6 24,0 18,7 17,0
Non-current lease liabilities 29,5 32,9 33,5 36,0 38,1
Total non-current liabilities 56,1 58,5 57,6 54,7 55,1
Advances from customer 16,1 12,6 6,4 9,8 7,5
Trade payables 602,0 309,7 384,4 609,8 603,9
Current lease liabilities 12,3 12,2 11,8 11,8 11,7
Other current liabilites 70,6 14,6 19,5 57,2 55,4
Accrued expense and deferred income 81,7 86,7 73,0 79,8 70,5
Current provisions 26,2 24,3 22,8 19,7 18,0
Total current liabilities 808,9 460,1 517,9 788,1 767,1
Total liabilities 865,1 518,6 575,5 842,8 822,2
TOTAL EQUITY AND LIABILITIES 1 611,2 1 366,6 1 394,5 1 647,7 1 554,6
Basic shareholders' equity per share, SEK 6,78 7,70 7,44 7,29 6,63
Diluted shareholders' equity per share, SEK 6,72 7,64 7,37 7,21 6,58

CHANGES IN CONSOLIDATED EQUITY IN SUMMARY

6 mths 3 mths Full year 9 mths 6 mths
Amounts in SEK M 2021 2021 2020 2020 2020
Equity at the beginning of the period 819,0 819,0 810,2 810,2 810,2
Net profit for the period 32,9 17,7 127,5 77,3 8,0
Other comprehensive income for the period 4,7 9,6 -19,1 1,8 1,3
Net comprehensive income for the period 37,6 27,3 108,4 79,1 9,3
Repurchase of own shares - - -16,0 - -
Decreased number of treasury shares 2,1 - 2,1 2,1 2,1
Dividend -110,2 - -88,3 -88,2 -88,2
Share based payments, equity settled -2,4 1,7 2,6 1,7 -1,1
Total transactions with owners of the Group -110,5 1,7 -99,6 -84,3 -87,1
Equity at the end of the period 746,1 848,1 819,0 805,0 732,4
Attributable to:
- Owners of the parent company 746,1 848,1 819,0 805,0 732,4

CONSOLIDATED CASH FLOW STATEMENTS IN SUMMARY

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2021 2020 2021 2020 2020
OPERATING ACTIVITIES
Operating profit 22,6 3,5 39,9 10,8 155,2
Adjustment for non-cash items 11,7 10,4 22,7 25,5 54,1
- of which depreciations and amortizations 14,1 9,7 28,1 19,5 45,5
- whereof other non-cash items -2,4 0,7 -5,4 6,0 8,6
Interest received 0,0 - 0,0 0,1 0,2
Interest paid -0,3 -0,3 -0,6 -0,7 -1,3
Paid income tax -0,9 -1,0 -2,0 -1,9 -4,6
Cash flow from operating activities before changes in working
capital 33,1 12,7 60,0 33,9 203,6
Cash flow from changes in working capital
Increase(-)/decrease(+) inventories -173,6 -229,1 -141,4 -195,2 -87,3
Increase(-)/decrease(+) trade receivables -33,1 36,7 -65,5 -8,5 -77,0
Increase(-)/decrease(+) other current receivables -140,1 -197,2 -179,3 -271,6 -28,7
Increase(+)/decrease(-) trade payables 291,7 398,2 235,1 445,8 217,6
Increase(+)/decrease(-) other current liabilites 3,8 0,0 10,3 19,0 36,6
Cash flow from changes in working capital -51,3 8,6 -140,8 -10,4 61,2
Cash flow from operating activities -18,2 21,3 -80,8 23,5 264,9
INVESTING ACTIVITIES
Acquisition of intangible assets -13,7 -14,0 -25,4 -28,6 -45,6
Acquisition of tangible assets -12,4 -2,0 -13,9 -8,6 -16,3
Cash flow from investing activities -26,1 -15,9 -39,3 -37,2 -61,9
FINANCING ACTIVITIES
Amortization of lease liabilities -3,0 -2,8 -6,0 -5,6 -11,0
Dividend paid -55,0 -44,1 -55,0 -44,1 -88,3
Decreased number of treasury shares 2,1 2,1 2,1 2,1 2,1
Repurchase of treasury shares - - - - -16,0
Net cash used in financing activities -56,0 -44,7 -58,9 -47,6 -113,2
Net cash flow for the period -100,3 -39,4 -179,1 -61,3 89,7
Cash and cash equivalents at beginning of period 189,9 180,1 262,4 194,2 194,2
Exchange rate losses/gains in cash and cash equivalents -3,5 -7,9 2,7 -0,1 -21,5
Cash and cash equivalents at end of period 86,1 132,9 86,1 132,9 262,4
Unutilized bank overdraft facility 50,0 50,0 50,0 50,0 50,0
Available funds at end of period 136,1 182,9 136,1 182,9 312,4

PARENT COMPANY INCOME STATEMENT IN SUMMARY

6 mths 6 mths Full year
Amounts in SEK M 2021 2020 2020
Net sales 789,0 579,9 1 672,1
Cost of goods sold -658,0 -507,5 -1 392,2
Gross profit 131,0 72,4 279,8
Selling expenses -34,2 -32,3 -65,1
Administrative expenses -27,3 -22,0 -54,3
Research and development costs -30,5 -22,4 -55,4
Other income and expenses -0,7 1,8 14,3
Operating profit 38,3 -2,4 119,3
Result from financial items:
Interest income and similar profit/loss items 2,2 0,4 0,2
Interest expenses and similar profit/loss items -0,1 -0,9 -20,6
Profit/loss before tax 40,4 -2,9 99,0
Income tax -8,3 0,6 -1,5
Net profit for the period 32,1 -2,3 97,4

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME

6 mths 6 mths Full year
Amounts in SEK M 2021 2020 2020
Net profit for the period 32,1 -2,3 97,4
Comprehensive income for the period
Items that are or may be reclassified to profit or loss for the period
Comprehensive income for the period - - -
Net comprehensive income for the period 32,1 -2,3 97,4

PARENT COMPANY BALANCE SHEET IN SUMMARY

Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
Amounts in SEK M 2021 2021 2020 2020 2020
ASSETS
Non-current assets
Intangible assets 93,7 88,2 84,7 86,2 82,0
Property, plant and equipment 39,1 28,7 28,5 27,6 26,0
Financial assets
Participations in group companies 190,3 191,2 190,9 186,7 186,2
Recevables from group companies 10,0 9,3 11,7 10,6 9,6
Deferred tax assets 65,4 70,1 73,8 76,4 75,8
Total financial assets 265,8 270,6 276,4 273,7 271,6
Total non-current assets 398,6 387,5 389,6 387,5 379,6
Current assets
Inventories, etc. 228,5 138,2 184,8 184,9 227,1
Current receivables
Trade receivables 148,4 106,7 79,9 158,2 63,5
Receivables from current group companies 242,1 166,8 153,2 299,0 179,2
Other current receivables 267,3 129,5 91,7 194,9 322,8
Prepaid expenses and accrued income 13,7 8,8 7,0 8,8 10,3
Total current receivables 671,4 411,8 331,9 660,9 575,7
Cash and cash equivalents 40,8 147,0 225,1 134,6 108,9
Total current assets 940,7 697,0 741,7 980,4 911,8
TOTAL ASSETS 1 339,3 1 084,5 1 131,3 1 367,9 1 291,4
L II

L L
$\tilde{\phantom{a}}$
BRINGING TRUST TO RETAIL
Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
Amounts in SEK M 2021 2021 2020 2020 2020
EQUITY AND LIABILITIES
Shareholders' equity
Restricted equity
Share capital 111,0 111,0 111,0 111,0 111,0
Statutory reserve 104,8 104,8 104,8 104,8 104,8
Legal reserve for internally generated development expenditure 92,1 86,9 83,7 84,4 79,8
Total restricted equtiy 307,9 302,7 299,5 300,2 295,6
Non-restricted equity
Share premium reserve 195,9 197,9 196,2 211,3 208,5
Retained earnings 49,2 164,6 70,4 69,8 74,3
Net profit for the year 32,1 16,3 97,4 61,9 -2,3
Total non-restricted equity 277,2 378,8 364,0 343,0 280,5
Total equity 585,0 681,5 663,5 643,2 576,1
PROVISIONS
Provisions 38,6 35,7 33,5 28,9 26,3
Total provisions 38,6 35,7 33,5 28,9 26,3
NON-CURRENT LIABILITES
Non-current liabilities 0,1 0,1 0,1 0,1 0,1
Total non-current liabilites 0,1 0,1 0,1 0,1 0,1
CURRENT LIABILITES
Advances from customer 1,1 5,0 0,5 - -
Trade payables 598,6 305,2 378,2 605,3 601,1
Liabilities to group companies 13,4 12,0 18,1 9,2 8,1
Other current liabilities 60,2 2,8 3,1 45,7 48,5
Accrued expenses and deferred income 42,4 42,1 34,4 35,6 31,1
Total current liabilities 715,6 367,2 434,3 695,8 688,8
TOTAL EQUITY AND LIABILITIES 1 339,3 1 084,5 1 131,3 1 367,9 1 291,4

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY IN SUMMARY

6 mths 3 mths Full year 9 mths 6 mths
Amounts in SEK M 2021 2020 2020 2020 2020
Equity at the beginning of the period 663,5 663,5 665,6 665,6 665,6
Net comprehensive income for the period 32,1 16,3 97,4 61,9 -2,3
Repurchase of own shares - - -16,0 - -
Decreased number of treasury shares 2,1 - 2,1 2,1 2,1
Dividend -110,2 - -88,3 -88,2 -88,2
Share based payments, equity settled -2,4 1,7 2,6 1,7 -1,1
Equity at the end of the period 585,0 681,5 663,5 643,2 576,1

KEY FIGURES

Q2 Q1 Q4 Q3 Q2
Amounts in SEK M 2021 2021 2020 2020 2020
Order intake 408 443 454 440 324
Order intake - rolling 4 quarters 1 744 1 660 1 588 1 978 1 761
Net sales 389,0 392,9 680,3 565,7 287,6
Net sales - rolling 4 quarters 2 027,8 1 926,5 1 759,5 1 317,0 983,9
Operating profit 22,6 17,3 69,3 75,1 3,5
Operating profit - rolling 4 quarters 184,3 165,2 155,2 109,9 59,7
Net profit for the period 15,2 17,7 50,2 69,3 -6,9
Cash flow from operating activities -18,2 -62,6 203,1 38,2 21,3
Cash flow from operating activities - rolling 4 quarters 160,6 200,1 264,9 187,6 144,5
Number of employees, end of period 173 163 150 147 147
Equity/assets ratio 46% 62% 59% 49% 47%

Note 1 — Accounting Principles

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 Chapter 9 of the Annual Accounts Act and RFR 2, Accounting for Legal Entities, issued by the Swedish Financial Reporting Council. The same accounting principles and bases for calculation were applied for the Group and the Parent Company as in the latest annual report.

Note 2 — Revenue from contracts with customers

BREAKDOWN OF REVENUE

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2021 2020 2021 2020 2020
Revenue from goods 362,8 271,6 730,6 481,2 1 670,4
Revenue from services 19,7 13,1 38,7 26,3 72,5
Revenue from licenses 6,5 2,9 12,6 6,1 16,6
Total 389,0 287,6 781,9 513,6 1 759,5

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.

NET SALES BY SALES CHANNEL

Q2 Q2 6 mths 6 mths Full year
2021 2020 2021 2020 2020
Direct customers 50% 74% 56% 62% 72%
Resellers 50% 26% 44% 38% 28%
Total 100% 100% 100% 100% 100%

Note 3 — Leases

RIGHT-OF-USE ASSET

Jun 30 Jun 30 Dec 31
Amounts in SEK M 2021 2020 2020
Premises 35,4 45,5 40,4
Cars 4,6 3,0 3,3
Total 40,0 48,5 43,7

LEASE LIABILITY

Jun 30 Jun 30 Dec 31
Amounts in SEK M 2021 2020 2020
Within one year 12,3 11,7 11,8
Between one and five years 28,8 34,9 31,4
More than five years 0,7 3,2 2,1
Total 41,8 49,8 45,3

Note 3 — Leases (cont'd)

COST AND CASH FLOW INFORMATION

Q2 Q2 Full year
Amounts in SEK M 2021 2020 2020
Depreciation of right-of use assets 3,1 2,9 11,8
(of which premises) 2,7 2,6 10,4
(of which cars) 0,4 0,3 1,3
Interest expense for lease liabilities 0,3 0,3 1,1
Amortization of lease liabilities 3,0 2,7 11,0

Note 4 — Financial instruments

For financial instruments measured at amortized cost — trade receivables, other current receivables and cash and cash equivalents, trade payables, lease debt, 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.

FINANCIAL INSTRUMENTS

Jun 30 Jun 30 Dec 31
Amounts in SEK M 2021 2020 2020
Loan and trade receivables 641,9 617,8 589,6
Total financial assets 641,9 617,8 589,6
Lease liabilities 41,8 49,8 45,3
Other financial liabilities 657,8 648,0 400,9
Total financial liabilities 699,6 697,8 446,2

Note 5 – 2021 Share Performance Plan

The Annual General Meeting on April 29, 2021, resolved to establish an incentive program in the form of a share performance plan (LTI 2021) for certain senior executives and key employees, whereupon the participants, after an initial investment in Pricer's Class B shares, receive one matching share right and one performance-based share right per invested Class B share. Following the vesting period of three years, the share rights entitle the participants to receive one matching share and up to five performance shares depending on the outcome of the performance conditions. From the 2021 performance share plan, a maximum of 279,000 shares can be transferred free of charge to the participants in June 2024 in the event the predefined performance targets are fully met. The value of the promise is expensed during the vesting period.

Note 6 — Related party transactions

Significant related party transactions are described in Note 23 of the consolidated financial statements in the 2020 Annual Report. No related party relationships changed, and no significant transactions took place with related parties that significantly affect the Group's or Parent Company's financial position or earnings compared to the description in the 2020 Annual Report.

Note 7 — Pledged assets and contingent liabilities

Floating charges (chattel mortgages) are a type of general collateral in the form of an undertaking to the bank. In the case of the Parent Company, guarantees are issued to customs authorities and landlords.

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Parent company Group
Jun 30 Jun 30 Dec 31 Jun 30 Jun 30 Dec 31
Amounts in SEK M 2021 2020 2020 2021 2020 2020
Pledged assets
Floating charges 59,6 59,6 59,6 59,6 59,6 59,6
Blocked funds - - - - 0,9 -
Total 59,6 59,6 59,6 59,6 60,5 59,6
Contingent liabilities
Bank guarantee - - - - 0,9 -
Customs authorities 0,1 0,1 0,1 5,3 5,8 5,1
Landlords 1,7 1,7 1,7 1,7 1,7 1,7
Total 1,8 1,8 1,8 7,0 8,4 6,8

CONSOLIDATED INCOME STATEMENT IN SUMMARY

Amounts in SEK M Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Net sales 225,9 287,6 565,7 680,3 392,9 389,0
Cost of goods sold -155,1 -221,8 -432,0 -527,5 -298,9 -293,8
Gross profit 70,9 65,9 133,7 152,7 94,0 95,1
Gross margin, % 31,4% 22,9% 23,6% 22,5% 23,9% 24,5%
Selling expenses -38,7 -32,8 -32,6 -44,6 -36,2 -39,0
Administrative expenses -17,1 -16,6 -21,2 -23,1 -23,4 -19,5
Research and development costs -9,7 -12,7 -11,3 -21,7 -14,7 -15,8
Other income and expenses 2,0 -0,2 6,4 6,0 -2,4 1,7
Operating profit 7,3 3,5 75,1 69,3 17,3 22,6
Operating margin, % 3,3% 1,2% 13,3% 10,2% 4,4% 5,8%
Net financial items 8,2 -9,7 -5,2 -14,9 4,7 -3,2
Net profit before tax 15,6 -6,2 69,9 54,4 22,0 19,4
Income tax -0,7 -0,7 -0,6 -4,2 -4,3 -4,2
Net profit for the period 14,8 -6,9 69,3 50,2 17,7 15,2
Net profit for the period attributable to:
Owners of the Parent Company 14,8 -6,9 69,3 50,2 17,7 15,2
EARNINGS PER SHARE
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Basic earnings per share, SEK 0,13 -0,06 0,63 0,46 0,16 0,14
Diluted earnings per share, SEK 0,13 -0,06 0,62 0,45 0,16 0,14
Number of shares before dilution, millions 110,3 110,3 110,5 110,2 110,1 110,2
Diluted number of shares, millions 111,2 111,4 111,7 111,1 111,0 111,0
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1 Q2 Q3 Q4 Q1 Q2
Amounts in SEK M 2020 2020 2020 2020 2021 2021
Net profit for the period
Items that are or may be reclassified to profit or
loss for the period
14,8 -6,9 69,3 50,2 17,7 15,2
Translation differences 21,1 -19,8 0,5 -20,9 9,6 -4,9
Other comprehensive income for the period 21,1 -19,8 0,5 -20,9 9,6 -4,9
Net comprehensive income for the period 35,9 -26,6 69,8 29,3 27,3 10,3
Net comprehensive income for the period attributable to:
Owners of the Parent Company 35,9 -26,6 69,8 29,3 27,3 10,3

CONSOLIDATED CASH FLOW STATEMENTS IN SUMMARY

Q1 Q2 Q3 Q4 Q1 Q2
Amounts in SEK M 2020 2020 2020 2020 2021 2021
OPERATING ACTIVITIES
Operating profit 7,3 3,5 75,1 69,3 17,3 22,6
Adjustment for non-cash items 15,2 10,4 10,3 18,3 11,0 11,7
- of which depreciations and amortizations 9,8 9,7 12,9 13,1 14,0 14,1
- whereof other non-cash items 5,4 0,7 -2,6 5,2 -3,0 -2,4
Interest received - - - 0,1 - 0,0
Interest paid -0,4 -0,3 -0,3 -0,2 -0,3 -0,3
Paid income tax -0,9 -1,0 -1,8 -0,9 -1,1 -0,9
Cash flow from operating activities before
changes in working capital 21,2 12,7 83,2 86,5 26,9 33,1
Cash flow from changes in working capital
Increase(-)/decrease(+) inventories 33,9 -229,1 -51,7 159,6 32,2 -173,6
Increase(-)/decrease(+) trade receivables -45,1 36,7 -161,0 92,5 -32,4 -33,1
Increase(-)/decrease(+) other current receivables -74,4 -197,2 138,2 104,7 -39,2 -140,1
Increase(+)/decrease(-) trade payables 47,6 398,2 16,4 -244,6 -56,6 291,7
Increase(+)/decrease(-) other current liabilites 19,0 0,0 13,2 4,5 6,5 3,8
Cash flow from changes in working capital -19,0 8,6 -45,0 116,6 -89,5 -51,3
Cash flow from operating activities 2,2 21,3 38,2 203,1 -62,6 -18,2
INVESTING ACTIVITIES
Acquisition of intangible assets -14,6 -14,0 -10,9 -6,1 -11,7 -13,7
Acquisition of tangible assets -6,6 -2,0 -4,3 -3,4 -1,5 -12,4
Cash flow from investing activities -21,2 -15,9 -15,2 -9,6 -13,2 -26,1
FINANCING ACTIVITIES
Amortization of lease liabilities -2,9 -2,8 -2,8 -2,6 -3,0 -3,0
Dividend paid - -44,1 - -44,2 - -55,0
Decreased number of treasury shares - 2,1 - - - 2,1
Increased number of treasury shares - - - -16,0 - -
Cash flow from financing activities -2,9 -44,7 -2,8 -62,8 -3,0 -56,0
Net cash flow for the period -21,9 -39,4 20,2 130,8 -78,8 -100,3
Cash and cash equivalents at beginning of period 194,2 180,1 132,9 150,5 262,4 189,9
Exchange rate losses/gains in cash and cash
equivalents 7,8 -7,9 -2,5 -18,9 6,2 -3,5
Cash and cash equivalents at end of period 180,1 132,9 150,5 262,4 189,9 86,1
Unutilized bank overdraft facility 50,0 50,0 150,0 50,0 50,0 50,0
Available funds at end of period 230,1 182,9 300,5 312,4 239,9 136,1

Alternative key ratios

In addition to the key financial ratios that are covered by the IFRS framework, this report also includes other key ratios and measures, so-called alternative performance measures, that Pricer considers to be important for monitoring, analyzing and managing its operations. These key ratios and measures also provide Pricer's stakeholders with useful information about the company's financial position, profit and loss and development in a consistent manner. The reconciliation and definitions of the alternative key ratios and measures used in this report and that cannot be inferred directly from the financial statements are presented below.

Jun 30 Jun 30 Dec 31
Amounts in SEK M unless otherwise stated 2021 2020 2020
PERFORMANCE MEASURE
Operating expenses
Selling expenses -75,1 -71,5 -148,7
Administrative expenses -42,9 -33,7 -78,0
Research and development costs -30,5 -22,4 -55,4
Operating expenses -148,6 -127,6 -282,1
MARGIN RATIOS
Net Sales 781,9 513,6 1 759,5
Gross Profit 189,2 136,7 423,1
Gross profit margin, % 24,2% 26,6% 24,0%
Operating profit 39,9 10,8 155,2
Operating margin, % 5,1% 2,1% 8,8%
CAPITAL AND FINANCIAL RATIOS
Equity/assets ratio
Total assets 1 611,2 1 554,6 1 394,5
Equity 746,1 732,4 819,0
Equity/assets ratio, % 46% 47% 59%
RETURN RATIOS
Equtiy per share basic/diluted
Number of outstanding shares, million 110,2 110,3 110,2
Dilution, million 0,9 1,0 0,9
Equity 746,1 732,4 819,0
Equity per share basic, SEK 6,77 6,64 7,43
Equity per share diluted, SEK 6,72 6,58 7,37
Earnings per share, before and after dilution
Avarage number of outstanding shares, million 110,1 110,4 110,3
Dilution, million 0,9 1,0 0,9
Net profit 32,9 8,0 127,5
Earnings per share, before dilution, SEK 0,30 0,07 1,16
Earnings per share, after dilution, SEK 0,30 0,07 1,15
ALTERNATIVE KEY RATIOS DEFINITION REASON FOR USE
PERFORMANCE METRIC
Change adjusted for exchange rate
fluctuations/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.
This measure is used by management to follow
underlying change in profit/loss in comparable
currencies.
Gross profit Net sales less cost of goods sold Gross profit is an important measure for
management since it is used to analyze the
company's underlying development excluding
factors such as the product mix and price changes
that can give rise to sharp fluctuations in net sales.
Operating expenses Refers to selling expenses, administrative
expenses and R&D expenses that are included in
operating activities.
Operating expenses provide an overall picture of
expenses that are charged to operating activities
and are an important internal measure that
management can influence to a large extent.
Items affecting comparability Expenses of a non-recurring nature that are not
part of the operating activities, such as personnel
costs related to restructurings.
This measure is used by management to
understand which costs are not part of the
underlying operating activities.
Operating expenses adjusted for items
affecting comparability
Operating expenses minus items affecting
comparability.
This measure is used by management to enable
comparability of operating expenses between
periods and to forecast future cost trends.
Operating profit Profit before financial items and tax. Operating profit provides an overall picture of the
total profit generation in operating activities. This is
a very important metric for internal use that
management can influence to a greater extent
than net profit.
Rolling four quarters Financial KPIs and measurements based on the
four most recent quarters.
Rolling four quarters are used to show financial
development over time adjusted for any seasonal
effects.
MARGIN RATIOS
Gross profit margin Gross profit as a percentage of net sales. The gross margin is used for both internal
evaluation and individual sales/contracts and to
monitor development over time for the company as
a whole.
Operating margin Operating profit as a percentage of net sales. Operating margin is one of management's most
important measures for performance monitoring
since it measures the company's ability to convert
net sales into operating profit.
CAPITAL AND FINANCIAL RATIOS
Equity/asset ratio Equity as a percentage of total assets. A traditional measure that gives an indication of
the company's ability to pay its debts.
RETURN RATIOS
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
based share plans.
This measure is used to show development of
equity per share over time and enable
comparability with other companies.
ALTERNATIVE KEY RATIOS DEFINITION REASON FOR USE
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
based share plans.
This measure is used to show development of
earnings per share over time and to enable
comparability with other companies.
OTHER RATIOS
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.
Order intake is used to measure demand for the
company's products and services during a specific
period. This measure is also an important indicator
of increases/decreases in demand between
periods.
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.
This measure is used by management to follow
underlying change in order intake in comparable
currencies.
Order backlog The value of incoming orders that have not yet
been invoiced.
The size of the order backlog gives an indication of
net sales development from a short to mid-term
perspective.

About Pricer

Pricer manufactures the world's most reliable system of electronic shelf labels (ESL), which help retailers all over the world resolve important challenges introduced by modernization. Pricer's digital solutions optimize employee-intensive processes, ensure price information, and improve the buying experience for the customer.

With over 200 million labels installed in over 17,000 installations in more than 60 countries, Pricer is the world-leader in digital retail solutions.

For many years, Pricer's ideas, technology and employees have changed how the grocery retail trade functions and transformed an entire industry. Pricer is today the only supplier with optical wireless communication, which creates a scalable and reliable system that is not disrupted by other Wi-Fi systems. In addition, the battery performance of Pricer's labels is the market leader, featuring significantly less energy consumption than other communication systems without sacrificing speed and flexibility.

Pricer's customers today primarily operate in the grocery retail, DIY, electronics, and pharmacy industries. Customer needs and consumer preferences are the drivers for Pricer's innovative and sustainable solutions.

Pricer was founded in 1991 in Sweden, and the company's Class B share is listed on Nasdaq Stockholm Mid Cap.

For more information, please visit www.pricer.com.

Pricer AB Website: www.pricer.com Box 215 Telephone: +46 8 505 582 00 SE-101 24 Stockholm, Sweden CIN: 556427-7993 Street address: Västra Järnvägsgatan 7 SE-111 64 Stockholm

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