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Pricer

Interim / Quarterly Report Jul 21, 2020

3098_ir_2020-07-21_dc71fe19-d6da-478e-b660-2f3bc5d98eb2.pdf

Interim / Quarterly Report

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Q2 • INTERIM REPORT • January–June 2020

SEK 287.6 M

Net sales in the quarter

1.2%

Operating margin in the quarter

SEK -6.9 M

Net profit for the quarter

High order intake – increased demand on several markets

COVID-19: delayed net sales, negative impact on gross margin and profit

Q2 2020

  • Net sales amounted to SEK 287.6 M (270.7), an increase of 6 percent compared to the same period last year.
  • Operating profit amounted to SEK 3.5 M (34.1), which corresponds to an operating margin of 1.2 percent (12.6).
  • Order intake was SEK 324 M (230), an increase of 41 percent compared to the same period last year.
  • Order backlog amounted to SEK 903 M (131), of which the majority is expected to be delivered in 2020.
  • Profit for the period was SEK -6.9 M (32.2).
  • Earnings per share (basic and diluted) were SEK -0.06 (0.29).
  • Cash flow from operating activities was SEK 21.3 M (-28.1).

H1 2020

  • Net sales amounted to SEK 513.6 M (532.6), a decrease of 4 percent compared to the same period last year.
  • Operating profit amounted to SEK 10.8 M (51.6), which corresponds to an operating margin of 2.1 percent (9.7).
  • Order intake was SEK 695 M (438), an increase of 59 percent compared to the same period last year.
  • Profit for the period was SEK 8.0 M (51.6).
  • Earnings per share (basic and diluted) were SEK 0.07 (0.47 and 0.46, respectively).
  • Cash flow from operating activities was SEK 23.5 M (24.3).
Amounts in SEK M unless otherwise Q2 Q2 6 mths 6 mths Rolling Full year
stated 2020 2019 2020 2019 4 Q 2019
Order intake 324 230 695 438 1 761 1 504
Net sales 287,6 270,7 513,6 532,6 983,9 1 002,9
Gross margin, % 22,9% 33,2% 26,6% 31,2% 30,6% 33,0%
Operating profit 3,5 34,1 10,8 51,6 59,7 100,4
Operating margin, % 1,2% 12,6% 2,1% 9,7% 6,1% 10,0%
Cash flow 1) 21,3 -28,1 23,5 24,3 144,5 145,3
Net profit for the period -6,9 32,2 8,0 51,6 54,1 97,7
Earnings per share, SEK 2) -0,06 0,29 0,07 0,47 0,49 0,89
1) Cash flow
from operating activities

2) Basic earnings per share

High order backlog and demand are cause for optimism for strong organic growth

Comments from CEO Helena Holmgren

As expected, the start of the second quarter was tough due to COVID-19. Restrictions during primarily April and part of May that limited people's mobility and new temporary rules on store operations had a major impact on retailers around the world. For Pricer, this meant postponed deliveries and store installations while waiting for staff to once again become available and stores to open. The recovery in June was strong, with unusually high delivery activity, but, despite this, some of the net sales were pushed into the third quarter and the profit for the second quarter was a disappointment. However, the high order backlog of just over SEK 900 M at the end of the second quarter is cause for optimism in terms of the full year.

Our cloud-based platform, Pricer Plaza, which was launched during the first quarter of the year has been well received by the market. We are seeing a growing interest in purchasing our system as a cloud service. Having business-critical systems connected to the cloud is highly relevant since it decreases the need for physical presence in the store and simplifies the flow of data between different systems. The modularity of the offer makes it easy to add new functionality as the need arises, which is particularly attractive for customers who intend to use the system as an integrated part of several different store processes.

Order intake in the second quarter amounted to SEK 324 M, which is an increase of 41 per cent compared to the same period last year. A large proportion of the order intake was generated by customers who have chosen Pricer Plaza, including both new and existing customers. The business model in this situation is different compared to the traditional business. The initial hardware delivery with related installation services remains unchanged, but a recurring revenue component related to the management of the system and the applications the customer chooses to implement will be added.

A number of factors have had a negative impact on the gross margin and profit during the quarter. The product mix, with a high percentage of large labels, and the contract mix, with a high percentage of large customer projects, have had a negative impact on the gross margin in the quarter compared to the same period last year. In addition, the appreciation of the Swedish krona in the second quarter, primarily against the US dollar, coincided with high transaction volumes and impacted negatively.

The current situation with the coronavirus has had a negative impact on profitability in a number of areas. Beside the operational challenges to conduct business efficiently, access to logistics solutions has been a particular challenge and resulted in a significant increase in freight costs. In addition, the spring's supply chain challenges in Asia has impacted availability of components which has caused some difficulties in optimizing production flows. Although we see some improvements, indications are that component supply and logistics will remain challenging for some time. We will continue to mitigate the risks and secure our flows.

The times we have just been through, and that we are in part still going through, have been challenging for many people both professionally and in their private lives. It is impressive how the Pricer team has demonstrated loyalty, flexibility, and decisiveness to find new solutions and paths forward with the goal of strengthening our offer and customer relationships. We view order intake and the high demand for our solutions as a sign that we are on the right path. We will continue to prepare Pricer for strong organic growth, in the form of both staff reinforcements and other investments intended to strengthen our position in the market.

Helena Holmgren President and CEO

16 Order intake per region in Q2 2020, SEK M

  • Europe, Middle East & Africa Americas
  • Asia & the Pacific

200 400 600 800 1 000

Order intake, SEK M

Q2 Q3 Q4 Q1 Q2 2019 2020

Quarter Rolling 4 quarters

0

Market development

The impact of the coronavirus on the retail industry differs across geographies and retail verticals. One thing that many retail chains around the world have had in common is a strong increase in the number of e-commerce orders and a need for flexible delivery models. In addition, the expectations have changed for what constitutes a safe and secure environment in stores for both employees and consumers. The availability of labor has also been affected, and the share of temporary staffing has increased sharply. As a result, demand for digital solutions to optimize the flow in the store, in terms of both products and consumers, has gained increased strategic importance, which is positive for Pricer. The acceleration of market growth should be viewed both in the short term and the medium term. Alongside the high order intake in the second quarter is noted greater activity on several markets with a large number of new customer requests.

European retail has been highly affected by lockdowns and other restrictions during the first half of the second quarter. Store visits have not been possible during the period, and basically all store installations were postponed. The underlying flow of small and medium-sized customer projects in primarily France but also in Italy and Belgium constitute the largest negative impact of the coronavirus in terms of net sales in the quarter compared to the previous year. Late in the second quarter large parts of the operations resumed, and the high order backlog indicates that a recovery during the second half of the year is highly possible.

The large US customer project is progressing according to the revised plan that was communicated in April. In the Netherlands, the project to install Pricer's system in all PLUS Retail stores began on a smaller scale in the second quarter. The project is primarily planned to run from fall 2020 until the end of Q1 2021. Deliveries to Carrefour in France will also take place during the fall 2020.

Order intake Q2 and H1 2020

Order intake for the second quarter amounted to SEK 324 M (230), an increase of 41 percent compared to the same quarter last year. Adjusted for exchange rate fluctuations, order intake increased by 40 percent. Order intake is spread across a large number of customers on several geographic markets, with the Netherlands and France as the largest individual contributors. Large customer contracts included in the quarter's order intake are PLUS Retail in the Netherlands for approximately SEK 100 M and Carrefour in France for approximately SEK 50 M.

Order intake amounted to SEK 695 M (438) for the first six months, an increase of 59 percent compared to the same period last year. Adjusted for exchange rate fluctuations, order intake rose 56 percent. The USA, France, and the Netherlands 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 2020

NET SALES BY GEOGRAPHICAL REGION

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2020 2019 2020 2019 2019
Europe, Middle East & Africa 114,3 213,1 309,9 434,9 807,7
Americas 164,5 32,2 193,6 52,9 122,7
Asia & the Pacific 8,9 25,4 10,0 44,8 72,5
Total net sales 287,5 270,7 513,6 532,6 1 002,9

NET SALES AND PROFIT, SEK M

Q2 Q2 6 mths 6 mths Full year
2020 2019 2020 2019 2019
Net sales 287,6 270,7 513,6 532,6 1 002,9
Cost of goods sold -221,8 -180,8 -376,8 -366,4 -672,0
Gross profit 65,9 89,9 136,7 166,1 331,0
Gross margin 22,9% 33,2% 26,6% 31,2% 33,0%
Operating expenses -62,1 -57,1 -127,6 -115,1 -227,2
Other income and expenses -0,2 1,3 1,8 0,6 -3,3
Operating profit 3,5 34,1 10,8 51,6 100,4
Operating margin 1,2% 12,6% 2,1% 9,7% 10,0%

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 287,6 6% 6%
Cost of goods sold -221,8 23% 22%
Gross profit 65,9 -18% -18%
Operating expenses -62,1 9% 9%
Other income and expenses -0,2 - -
Operating profit 3,5 -90% -88%
January - June compared with the same period last year
Net sales 513,6 -4% -5%
Cost of goods sold -376,8 3% 1%
Gross profit 136,7 -18% -18%
Operating expenses -127,6 11% 10%
Other income and expenses 1,8 - -
Operating profit 10,8 -79% -78%

Q2 2020

Net sales amounted to SEK 287.6 M (270.7) in the quarter, an increase of 6 percent compared to the same quarter last year even after adjustments for exchange rate fluctuations. Net sales in Q2 2020 were spread across a large number of customers, a significant part of which was related to the large US customer project. A number of store installations were delayed, primarily in southern Europe, as a result of temporary government restrictions, which had a negative impact on net sales in April and May, but these sales were recovered to some extent in June.

Gross profit amounted to SEK 65.9 M (89.9), and the gross margin amounted to 22.9 percent (33.2) for the quarter. The change in the gross margin continued to be primarily an effect of the

product and contract mix, where the majority of sales came from large customer projects. Freight supply during the quarter has been limited due to the coronavirus, which resulted in a sharp increase in the cost of air freight. Freight expenses have been significantly higher than normal by around SEK 6 M, which corresponds to an impact on the gross margin of approximately 2 percentage points. Most of the company's costs for goods sold were in USD, while net sales were generated primarily in USD and EUR. There were no currency effects on gross profit in the quarter compared with same period last year. However, lagging effects from this year's currency fluctuations had a negative impact on the gross margin in the second quarter, since purchases of goods that were made while the Swedish krona was weak were delivered and invoiced to customers when the Swedish krona was stronger.

Operating expenses increased to SEK -62.1 M (-57.1) in the quarter, an increase of 9 percent compared to the same quarter last year even after adjustments for exchange rate fluctuations. The increase is primarily due to staff and consultants related to investments to expand the customer service offer, product development, and enhanced market presence on several geographic markets, including the USA. Operating expenses are primarily in SEK, but they are also in EUR and USD.

Other income and expenses amounted to SEK -0.2 M (1.3) and consisted of the net effect of realized and unrealized currency revaluations of trade receivables and trade payables.

Operating profit amounted to SEK 3.5 M (34.1), which corresponded to an operating margin of 1.2 percent (12.6). Lower gross profit combined with an increase in operating expenses resulted in a decrease in the operating profit and the operating margin.

Financial items, primarily consisting of currency revaluation of balance sheet items such as cash and cash equivalents and the Parent Company's loans to subsidiaries in foreign currency, had a negative impact on the quarter and amounted to SEK -9.7 M (-0.7), which was largely the outcome of negative translation effects on currency accounts in USD and EUR due to an appreciation in SEK during the second quarter.

Tax for the quarter amounted to SEK -0.7 M (-1.1), of which SEK 0.2 M (0.1) refers to deferred tax and SEK -0.9 M (-1.2) to current tax. The current tax rate amounted to +14 percent (-4), and the reported total tax rate amounted to +11 percent (-3). The negative current tax despite negative profit before tax is due to taxable profit in subsidiaries. For the tax-related loss in the Parent Company, another loss carryforward has not been capitalized during the quarter. Deferred tax assets related to capitalized losses carried forward amounted in the balance sheet on June 30, 2020, to SEK 70.4 M (70.4).

Profit for the period was SEK -6.9 M (32.2). The decrease compared to last year can be traced to a decrease in the operating profit and negative net financial items.

Translation differences in other comprehensive income of SEK -19.8 M (4.4) consisted of currency revaluation of net assets in foreign operations.

H1 2020

Net sales amounted to SEK 513.6 M (532.6) in the first six months, a decrease of 4 percent compared to the same period last year. Net sales were spread across a large number of customers. The majority of the sales occurred in the USA, France and Norway. The decrease in net sales compared to last year in the EMEA region, which to some extent is due to the coronavirus, was largely offset by the increase in net sales in the Americas region. Adjusted for exchange rate fluctuations, net sales decreased by 5 percent.

Gross profit amounted to SEK 136.7 M (166.1), and the gross margin amounted to 26.6 percent (31.2) for the period. The change in the gross margin is primarily a continued consequence of the product and contract mix. The majority of the company's costs for goods sold were in USD, while net sales were generated primarily in EUR and USD. There were no currency effects on gross profit compared to last year. However, the strong currency fluctuations during the period,

primarily between SEK and USD, had an overall negative impact on the gross margin in the period.

Operating expenses increased to SEK -127.6 M (-115.1) in the period, an increase of 11 percent compared to the same period last year. The increase was primarily a result of increased costs for annual marketing events and trade shows as well as for staff and consultants related to an increase in the customer service offer, product development initiatives, and enhanced market presence in a number of geographic markets.

Other income and expenses amounted to SEK 1.8 M (0.6) 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 10.8 M (51.6), which corresponded to an operating margin of 2.1 percent (9.7). Lower gross profit combined with an increase in operating expenses resulted in a decrease 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 negatively and amounted to SEK -1.5 M (1.6).

Tax for the period amounted to SEK -1.4 M (-1.7), of which SEK 0.3 M (0.7) refers to deferred tax and SEK -1.7 M (-2.3) to current tax. The current tax rate amounted to -18 percent (-5), and the reported total tax rate amounted to -15 percent (-3). The low tax rate is due to the capitalization during the period of part of the parent company's previously non-recognized tax loss carried forward.

Profit for the period was SEK 8.0 M (51.6). The decrease compared to last year can be linked to a decrease in the operating profit and negative net financial items.

Translation differences in other comprehensive income of SEK 1.3 M (10.2) consisted of currency revaluation of net assets in foreign operations.

Cash flow, investments and financial position

Q2 2020

Cash flow from operating activities amounted to SEK 21.3 M (-28.1) for Q2. The change in working capital during the quarter had a positive impact on cash flow from operating activities of SEK 8.6 M (-74.3). The ongoing ramp-up in the production rate to deliver the order backlog resulted in higher inventory levels, which had a negative impact on cash flow. This was offset by a net increase in trade payables and incoming customer payments, which had a positive impact on cash flow. Payment morale among customers has been good during the COVID-19 period. Cash flow from operating activities should be analyzed over time.

Cash flow from investing activities amounted to SEK -15.9 M (-13.0) in the second quarter and consisted primarily of capitalized development expenditure of SEK -14.0 M (-8.3) for continued investments in product development and investments in property, plant and equipment of SEK -2.0 M (-4.7) attributable to production equipment.

Cash flow from financing activities amounted to SEK -44.7 M (-68.9) during the second quarter and referred to the dividend of SEK -44.1 M (-66.2), amortization of lease liabilities of SEK -2.8 M (-2.7) and a decrease in treasury shares of SEK 2.1 M (-). According to a resolution by the Annual General Meeting, the dividend has been divided into two payouts of SEK 0.40 per share each, which will be paid in May and November 2020.

Exchange rate differences in cash and cash equivalents amounted to SEK -7.9 M (0.8), which was a result of negative translation effects on currency accounts in USD and EUR.

Cash and cash equivalents amounted to SEK 132.9 M (104.3) on June 30, 2020. In addition to cash and cash equivalents, the company has an unutilized overdraft facility of SEK 50 M (50). During the second quarter, an agreement was established to increase the credit line from

SEK 50 M to SEK 150 M during the period July 1–December 31, 2020, to secure the ramp-up in the production rate.

H1 2020

Cash flow from operating activities amounted to SEK 23.5 M (24.3) for the period. The change in working capital had a negative impact of SEK -10.4 M (-48.9) on cash flow from operating activities, primarily due to higher inventories, which decreased cash flow, and an increase in trade payables, which improved cash flow.

Cash flow from investing activities amounted to SEK -37.2 M (-23.8) during the first six months and consisted primarily of capitalized development expenditure of SEK -28.6 M (-16.1) and investments in property, plant and equipment of SEK -8.6 M (-7.6) attributable to production equipment.

Cash flow from financing activities amounted to SEK -47.6 M (-71.1) during the first six months and referred to the dividend of SEK -44.1 M (-66.2), amortization of lease liabilities of SEK -5.6 M (-4.9) and a decrease in treasury shares of SEK 2.1 M (-).

Exchange rate differences in cash and cash equivalents amounted to SEK -0.1 M (3.8).

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 - -477 -477
Outstanding shares at end of period 226 110 269 110 495

Class A share carries five votes and class B share carries one vote

Pricer's holdings of treasury shares amounted on June 30, 2020, to SEK 477 (705) thousand Class B shares. These shares are held to be able to meet the promise of matching and performance shares under the outstanding performance share plans. The value of the promise is expensed during the vesting period.

From the 2017 performance share plan, 228 thousand shares have been transferred free of charge in June 2020 to the participants. Due to the fulfillment of the performance share plan, Pricer decreased its treasury shares by 228thousand shares.

Outstanding
performance share
plan (LTI)
Maximum number
of shares, 000's
Vesting period Transferred free of
charge to the
participants
LTI 2018 409 June 2018–May 2021 June 2021
LTI 2019 316 June 2019–May 2022 June 2022
LTI 2020 525 June 2020–May 2023 June 2023

For more information about the performance share plans from 2018 and 2019, please refer to Note 4 of the 2019 Annual Report. Read more under Note 5 2020 Share Performance Plan in this interim report.

90 100 110 120 130 140 150 Number of employees

Q2 Q3 Q4 Q1 Q2 2019 2020

80

Employees

The average number of employees during the second quarter was 145 (125), and the number of employees at the end of the period was 147 (126). The average number including hired staff and consultants was 171 (144) in the second quarter and 174 (143) at the end of the period. The organization was strengthened in several areas, such as product development and sales. Due to the greater rate of innovation to respond to the new challenges in the retail industry and broaden the system's area of use, we have expanded the R&D organization. We also 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 579.9 M (461.3), and the profit for the period amounted to SEK -2.3 M (105.6). Profit from financial items decreased since the item last year also included dividends from subsidiaries of SEK 52.8 M. The Parent Company's cash and cash equivalents amounted to SEK 108.9 M (80.7) 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 2019 Annual Report; see page 22 and Note 20.

Effects from the coronavirus

Pricer, like other global companies, is affected by pandemics, and in 2020 the company will be affected by COVID-19. During the first and second quarters, net sales and profitability were impacted negatively by the combined effects of the pandemic, primarily due to postponed customer deliveries but also due to effects that are difficult to quantify and are related to delays in new procurements and investments that have been postponed for practical reasons.

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 also continued to be Pricer's top priority.

Forecast

No forecast is provided for 2020.

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

At the Annual General Meeting on May 5, Knut Faremo was elected Chair of the Board. Knut has been a Board member of Pricer since the 2019 Annual General Meeting. Knut has broad international experience with extensive industry experience form the retail trade in Europe.

Events after the end of the reporting period

Pricer's Norwegian retailer StrongPoint has received an order from NorgesGruppen to install Pricer's system for digital store communication in an additional 200 stores. The order value for Pricer is around SEK 65 M. The plan is to complete delivery before the end of 2020.

Financial Calendar

October 23, 2020 Interim Report January–September 2020

The next interim report will be published on October 23, 2020

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 21, 2020

Pricer AB (publ)

Knut Faremo Chairman

Hans Granberg Jenni Virnes

Jonas Guldstrand Thomas Krishan

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 person mentioned below for publication on July 21, 2020, at 8:30 AM CET.

For more information, please contact: Helena Holmgren, President and CEO Susanne Andersson, CFO Tel: +46 8 505 582 00 Email: [email protected]

Financial Reporting

CONSOLIDATED INCOME STATEMENT IN SUMMARY

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2020 2019 2020 2019 2019
Net sales 287,6 270,7 513,6 532,6 1 002,9
Cost of goods sold -221,8 -180,8 -376,8 -366,4 -672,0
Gross profit 65,9 89,9 136,7 166,1 331,0
Selling expenses -32,8 -31,8 -71,5 -63,8 -124,0
Administrative expenses -16,6 -16,7 -33,7 -34,2 -67,5
Research and development costs -12,7 -8,6 -22,4 -17,1 -35,8
Other income and expenses -0,2 1,3 1,8 0,6 -3,3
Operating profit 3,5 34,1 10,8 51,6 100,4
Net financial items -9,7 -0,7 -1,5 1,6 0,8
Net profit before tax -6,2 33,4 9,4 53,2 101,3
Income tax -0,7 -1,1 -1,4 -1,7 -3,5
Net profit for the period -6,9 32,2 8,0 51,6 97,7
Net profit for the period attributable to:
Owners of the Parent Company -6,9 32,2 8,0 51,6 97,7
EARNINGS PER SHARE
Q2 Q2 6 mths 6 mths Full year
2020 2019 2020 2019 2019
Basic earnings per share, SEK -0,06 0,29 0,07 0,47 0,89
Diluted earnings per share, SEK -0,06 0,29 0,07 0,46 0,88
Number of shares before dilution, millions 110,3 110,3 110,3 110,3 110,3
Diluted number of shares, millions 111,4 111,2 111,3 111,2 111,2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Amounts in SEK M Q2
2020
Q2
2019
6 mths
2020
6 mths
2019
Full year
2019
Net profit for the period -6,9 32,2 8,0 51,6 97,7
Items that are or may be reclassified to profit or loss for the period
Translation differences -19,8 4,4 1,3 10,2 6,7
Other comprehensive income for the period -19,8 4,4 1,3 10,2 6,7
Net comprehensive income for the period -26,6 36,6 9,3 61,8 104,5
Net comprehensive income for the period attributable to:

The breakdown between Selling expenses and Administrative expenses has been reviewed in 2020 and adjusted retroactively for the comparative figure for 2019 to improve comparability between the years.

CONSOLIDATED BALANCE SHEET IN SUMMARY

Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
Amounts in SEK M 2020 2020 2019 2019 2019
ASSETS
Intangible assets 346,5 352,3 325,8 325,1 314,8
Property, plant and equipment 28,7 29,0 24,3 23,3 23,2
Right-of-use assets 48,5 53,0 53,8 53,7 54,5
Deferred tax assets 76,7 76,5 76,3 76,7 76,7
Total non-current assets 500,4 510,7 480,2 478,7 469,2
Inventories 413,9 188,4 218,7 269,2 263,0
Trade receivables 155,2 193,2 147,6 204,9 239,7
Prepaid expenses and accrued income 17,2 13,1 12,2 26,5 22,7
Other current receivables 335,0 142,5 68,1 41,8 67,8
Cash and cash equivalents 132,9 180,1 194,2 89,6 104,3
Total current assets 1054,2 717,4 640,8 632,0 697,5
TOTAL ASSETS 1 554,6 1 228,1 1 121,0 1 110,6 1 166,7
EQUITY AND LIABILITIES
EQUITY
Share capital 111,0 111,0 111,0 111,0 111,0
Other capital contributions 405,5 404,8 404,4 404,0 403,2
Reserves 36,2 56,0 34,9 44,9 38,3
Accumulated profits including profit for the year 179,7 274,8 259,9 240,7 213,7
Shareholder's equity attributable to the Parent Company's
shareholders 732,4 846,6 810,2 800,6 766,2
LIABILITIES
Non-current provisions 17,0 16,3 15,4 16,5 15,9
Non-current lease liabilities 38,1 42,2 43,1 43,3 44,2
Total non-current liabilities 55,1 58,5 58,5 59,8 60,1
Advances from customer 7,5 9,1 8,3 20,0 4,1
Trade payables 603,9 199,6 155,5 130,5 223,4
Current lease liabilities 11,7 11,9 11,5 11,1 10,6
Other current liabilites 55,4 11,9 9,0 7,8 13,5
Accrued expense and deferred income 70,5 73,6 51,7 62,4 70,5
Current provisions 18,0 16,8 16,2 18,5 18,2
Total current liabilities 767,1 322,9 252,2 250,2 340,4
Total liabilities 822,2 381,5 310,8 310,0 400,5
TOTAL EQUITY AND LIABILITIES 1 554,6 1 228,1 1 121,0 1 110,6 1 166,7
Basic shareholders' equity per share, SEK 6,64 7,68 7,35 7,26 6,95
Diluted shareholders' equity per share, SEK 6,58 7,61 7,29 7,20 6,89

CHANGES IN CONSOLIDATED EQUITY IN SUMMARY

6 mths 3 mths Full year 9 mths 6 mths
Amounts in SEK M 2020 2020 2019 2019 2019
Equity at the beginning of the period 810,2 810,2 769,3 769,3 769,3
Net profit for the period 8,0 14,8 97,7 78,6 51,6
Other comprehensive income for the period 1,3 21,1 6,7 16,7 10,2
Net comprehensive income for the period 9,3 35,9 104,5 95,3 61,8
Decreased number of treasury shares 2,1 - - - -
Dividend -88,2 - -66,2 -66,2 -66,2
Share based payments, equity settled -1,1 0,4 2,6 2,2 1,3
Total transactions with owners of the Group -87,1 0,4 -63,6 -64,0 -64,8
Equity at the end of the period 732,4 846,6 810,2 800,6 766,2
Attributable to:
- Owners of the parent company 732,4 846,6 810,2 800,6 766,2

CONSOLIDATED CASH FLOW STATEMENTS IN SUMMARY

Q2 Q2 6 mths 6 mths Full year
Amounts in SEK M 2020 2019 2020 2019 2019
OPERATING ACTIVITIES
Operating profit 3,5 34,1 10,8 51,6 100,4
Adjustment for non-cash items 10,4 12,3 25,5 23,0 39,3
- of which depreciations and amortizations 9,7 8,4 19,5 18,8 37,7
- whereof other non-cash items 0,7 3,9 6,0 4,2 1,6
Interest received - 0,0 0,1 0,0 0,6
Interest paid -0,3 -0,3 -0,7 -0,5 -1,3
Paid income tax -1,0 0,1 -1,9 -1,0 -2,8
Cash flow from operating activities before changes in
working capital 12,7 46,2 33,9 73,1 136,1
Cash flow from changes in working capital
Increase(-)/decrease(+) inventories -229,1 -47,5 -195,2 -70,8 -28,5
Increase(-)/decrease(+) trade receivables 36,7 -30,1 -8,5 37,7 129,6
Increase(-)/decrease(+) other current receivables -197,2 18,6 -271,6 -1,5 6,7
Increase(+)/decrease(-) trade payables 398,2 5,7 445,8 9,1 -56,9
Increase(+)/decrease(-) other current liabilites 0,0 -20,9 19,0 -23,3 -41,7
Cash flow from changes in working capital 8,6 -74,3 -10,4 -48,9 9,2
Cash flow from operating activities 21,3 -28,1 23,5 24,3 145,3
INVESTING ACTIVITIES
Acquisition of intangible assets -14,0 -8,3 -28,6 -16,1 -39,0
Acquisition of tangible assets -2,0 -4,7 -8,6 -7,6 -11,0
Cash flow from investing activities -15,9 -13,0 -37,2 -23,8 -50,0
FINANCING ACTIVITIES
Amortization of lease liabilities -2,8 -2,7 -5,6 -4,9 -10,1
Dividend paid -44,1 -66,2 -44,1 -66,2 -66,2
Decreased number of treasury shares 2,1 - 2,1 - -
Net cash used in financing activities -44,7 -68,9 -47,6 -71,1 -76,3
Net cash flow for the period -39,4 -109,9 -61,3 -70,6 19,1
Cash and cash equivalents at beginning of period 180,1 213,5 194,2 171,0 171,0
Exchange rate losses/gains in cash and cash equivalents -7,9 0,8 -0,1 3,8 4,1
Cash and cash equivalents at end of period 132,9 104,3 132,9 104,3 194,2
Unutilized bank overdraft facility 50,0 50,0 50,0 50,0 50,0
Available funds at end of period 182,9 154,3 182,9 154,3 244,2

PARENT COMPANY INCOME STATEMENT IN SUMMARY

6 mths 6 mths Full year
Amounts in SEK M 2020 2019 2019
Net sales 579,9 461,3 848,7
Cost of goods sold -507,5 -345,7 -620,1
Gross profit 72,4 115,6 228,7
Selling expenses -32,3 -25,8 -51,8
Administrative expenses -22,0 -22,9 -46,1
Research and development costs -22,4 -17,1 -35,8
Other income and expenses 1,8 0,7 -3,3
Operating profit -2,4 50,5 91,7
Result from financial items:
Result from participations in group companies - 52,8 50,0
Interest income and similar profit/loss items 0,4 2,2 2,4
Interest expenses and similar profit/loss items -0,9 -0,1 -0,2
Profit/loss before tax -2,9 105,4 143,9
Income tax 0,6 0,3 -0,6
Net profit for the period -2,3 105,6 143,3

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME

6 mths 6 mths Full year
Amounts in SEK M 2020 2019 2019
Net profit for the period -2,3 105,6 143,3
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 -2,3 105,6 143,3

The breakdown between Selling expenses and Administrative expenses has been reviewed in 2020 and adjusted retroactively for the comparative figure for 2019 to improve comparability between the years.

PARENT COMPANY BALANCE SHEET IN SUMMARY

Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
Amounts in SEK M 2020 2020 2019 2019 2019
ASSETS
Non-current assets
Intangible assets 82,0 72,5 62,5 54,3 48,3
Property, plant and equipment 26,0 26,2 21,6 20,1 20,5
Financial assets
Participations in group companies 186,2 187,1 186,9 186,7 186,5
Recevables from group companies 9,6 6,6 6,3 8,3 7,0
Deferred tax assets 75,8 75,4 75,3 76,2 76,1
Total financial assets 271,6 269,1 268,5 271,2 269,5
Total non-current assets 379,6 367,8 352,6 345,6 338,3
Current assets
Inventories, etc. 227,1 114,3 170,8 211,1 202,4
Current receivables
Trade receivables 63,5 98,5 56,7 79,4 91,8
Receivables from current group companies 179,2 98,6 65,4 116,2 127,0
Other current receivables 322,8 137,5 62,9 35,9 62,5
Prepaid expenses and accrued income 10,3 7,6 7,6 20,1 15,6
Total current receivables 575,7 342,1 192,6 251,5 297,0
Cash and cash equivalents 108,9 125,1 167,9 66,9 80,7
Total current assets 911,8 581,4 531,3 529,5 580,1
TOTAL ASSETS 1 291,4 949,2 883,8 875,0 918,4

PARENT COMPANY BALANCE SHEET IN SUMMARY

Jun 30 Mar 31 Dec 31 Sep 30 Jun 30
Amounts in SEK M 2020 2020 2019 2019 2019
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 79,8 69,9 59,4 50,9 34,9
Total restricted equtiy 295,6 285,7 275,3 266,7 250,8
Non-restricted equity
Share premium reserve 208,5 207,9 207,4 207,0 206,2
Retained earnings 74,3 172,4 207,4 207,0 206,2
Net profit for the year -2,3 13,3 39,6 48,1 64,1
Total non-restricted equity 280,5 393,6 390,4 382,3 375,9
Total equity 576,1 679,4 665,6 649,0 626,7
PROVISIONS
Provisions 26,3 24,4 23,6 26,5 26,1
Total provisions 26,3 24,4 23,6 26,5 26,1
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 - - - 13,5 -
Trade payables 601,1 195,6 151,7 127,3 218,3
Liabilities to group companies 8,1 10,2 12,9 23,1 10,0
Other current liabilities 48,5 2,5 2,6 2,4 2,8
Accrued expenses and deferred income 31,1 37,0 27,3 33,1 34,4
Total current liabilities 688,8 245,3 194,6 199,4 265,5
TOTAL EQUITY AND LIABILITIES 1 291,4 949,2 883,8 875,0 918,4

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY IN SUMMARY

6 mths 3 mths Full year 9 mths 6 mths
Amounts in SEK M 2020 2020 2019 2019 2019
Equity at the beginning of the period 665,6 665,6 585,9 585,8 585,8
Net comprehensive income for the period -2,3 13,3 143,3 127,1 105,6
Decreased number of treasury shares
Dividend
2,1
-88,2
- -66,2 -66,2 -66,2
Share based payments, equity settled -1,1 0,4 2,6 2,2 1,3
Equity at the end of the period 576,1 679,4 665,6 649,0 626,7

KEY FIGURES

Q2 Q1 Q4 Q3 Q2
Amounts in SEK M 2020 2020 2019 2019 2019
Order intake 324 371 843 222 230
Order intake - rolling 4 quarters 1 761 1 667 1 504 934 998
Net sales 287,6 225,9 237,8 232,5 270,7
Net sales - rolling 4 quarters 983,9 967,0 1 002,9 1 151,6 1 325,1
Operating profit 3,5 7,3 24,0 24,8 34,1
Operating profit - rolling 4 quarters 59,7 90,2 100,4 105,4 111,6
Net profit for the period -6,9 14,8 19,2 27,0 32,2
Cash flow from operating activities 21,3 2,2 125,9 -4,8 -28,1
Cash flow from operating activities - rolling 4 quarters 144,5 95,2 145,3 78,6 30,9
Number of employees, end of period 147 141 135 129 126
Equity/assets ratio 47% 69% 72% 72% 66%

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 2020 2019 2020 2019 2019
Revenue from goods 271,6 247,4 481,2 491,4 924,3
Revenue from services 13,1 19,9 26,3 33,4 64,3
Revenue from licenses 2,9 3,3 6,1 7,8 14,3
Total 287,6 270,7 513,6 532,6 1 002,9

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
2020 2019 2020 2019 2019
Direct customers 74% 45% 62% 45% 47%
Resellers 26% 55% 38% 55% 53%
Total 100% 100% 100% 100% 100%

Note 3 — Leases

RIGHT-OF-USE ASSET

Jun 30 Jun 30 Dec 31
Amounts in SEK M 2020 2019 2019
Premises 45,5 56,3 50,8
Cars 3,0 1,6 3,0
Total 48,5 57,9 53,8

LEASE LIABILITY

Jun 30 Jun 30 Dec 31
Amounts in SEK M 2020 2019 2019
Within one year 11,7 10,7 11,5
Between one and five years 34,9 41,4 38,6
More than five years 3,2 6,2 4,5
Total 49,8 58,3 54,6

Note 3 — Leases (cont'd)

COST AND CASH FLOW INFORMATION

Q2 Q2 Full year
Amounts in SEK M 2020 2019 2019
Depreciation of right-of use assets 2,9 2,8 11,0
(of which premises) 2,6 2,5 9,9
(of which cars) 0,3 0,3 1,1
Interest expense for lease liabilities 0,3 0,2 1,1
Amortization of lease liabilities 2,7 2,7 10,1

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

Amounts in SEK M Jun 30
2020
Jun 30
2019
Dec 31
2019
Loan and trade receivables 485,0 407,6 406,0
Total financial assets 485,0 407,6 406,0
Lease liabilities 49,8 58,3 54,6
Other financial liabilities 648,0 224,6 176,5
Total financial liabilities 697,8 282,9 231,2

Note 5 – 2020 Share Performance Plan

The Annual General Meeting on May 6, 2020, resolved to establish an incentive program in the form of a share performance plan (LTI 2020) 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 2020 performance share plan, a maximum of 525,000 shares can be transferred free of charge to the participants in June 2023 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 2019 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 2019 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, landlords and advance payments from customers. Blocked funds in the companies' bank accounts are available for bank guarantees.

PLEDGED ASSETS AND CONTINGENT LIABILITIES

Parent company Group
Jun 30 Jun 30 Dec 31 Jun 30 Jun 30 Dec 31
Amounts in SEK M 2020 2019 2019 2020 2019 2019
Pledged assets
Floating charges 59,6 59,6 59,6 59,6 59,6 59,6
Blocked funds - 13,1 - 0,9 14,0 0,9
Total 59,6 72,7 59,6 60,5 73,6 60,5
Contingent liabilities
Bank guarantee - - - 0,9 0,9 0,9
Customs authorities 0,1 0,1 0,1 5,8 5,7 5,7
Landlords 1,7 1,7 1,7 1,7 1,7 1,7
Prepayment gurantee - 13,1 - - 13,1 -
Total 1,8 15,0 1,8 8,4 21,4 8,3

CONSOLIDATED INCOME STATEMENT IN SUMMARY

Net sales
261,9
270,7
232,5
237,8
225,9
287,6
Cost of goods sold
-185,6
-180,8
-154,1
-151,4
-155,1
-221,8
Gross profit
76,2
89,9
78,4
86,4
70,9
65,9
Gross margin, %
29,1%
33,2%
33,7%
36,3%
31,4%
22,9%
Selling expenses
-32,0
-31,8
-28,5
-31,7
-38,7
-32,8
Administrative expenses
-17,5
-16,7
-14,7
-18,6
-17,1
-16,6
Research and development costs
-8,5
-8,6
-9,3
-9,3
-9,7
-12,7
Other income and expenses
-0,7
1,3
-1,1
-2,8
2,0
-0,2
Operating profit
17,6
34,1
24,8
24,0
7,3
3,5
Operating margin, %
6,7%
12,6%
10,7%
10,1%
3,3%
1,2%
Net financial items
2,3
-0,7
3,2
-4,0
8,2
-9,7
Net profit before tax
19,9
33,4
28,0
20,0
15,6
-6,2
Income tax
-0,5
-1,1
-1,0
-0,9
-0,7
-0,7
Net profit for the period
19,3
32,2
27,0
19,2
14,8
-6,9
Net profit for the period attributable to:
Owners of the Parent Company
19,3
32,2
27,0
19,2
14,8
-6,9
EARNINGS PER SHARE
Q1
Q2
Q3
Q4
Q1
Q2
2019
2019
2019
2019
2020
2020
Basic earnings per share, SEK
0,18
0,29
0,25
0,17
0,13
-0,06
Diluted earnings per share, SEK
0,17
0,29
0,24
0,17
0,13
-0,06
Number of shares before dilution, millions
110,3
110,3
110,3
110,3
110,3
110,3
Diluted number of shares, millions
110,9
111,2
111,2
111,2
111,2
111,4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Q1
Q2
Q3
Q4
Q1
Q2
Amounts in SEK M
2019
2019
2019
2019
2020
2020
Net profit for the period
19,3
32,2
27,0
19,2
14,8
-6,9
Items that are or may be reclassified to profit or loss for the period
Translation differences
5,8
4,4
6,5
-10,0
21,1
-19,8
Other comprehensive income for the period
5,8
4,4
6,5
-10,0
21,1
-19,8
Net comprehensive income for the period
25,1
36,6
33,6
9,1
35,9
-26,6
Net comprehensive income for the period attributable to:
Owners of the Parent Company
25,1
36,6
33,6
9,1
35,9
-26,6
Amounts in SEK M Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020

The breakdown between Selling expenses and Administrative expenses has been reviewed in 2020 and adjusted retroactively for the comparative figure for 2019 to improve comparability between the years.

CONSOLIDATED CASH FLOW STATEMENTS IN SUMMARY

Q1 Q2 Q3 Q4 Q1 Q2
Amounts in SEK M 2019 2019 2019 2019 2020 2020
OPERATING ACTIVITIES
Operating profit 17,6 34,1 24,8 24,0 7,3 3,5
Adjustment for non-cash items 10,7 12,3 8,8 7,5 15,2 10,4
- of which depreciations and amortizations 10,4 8,4 9,0 9,9 9,8 9,7
- whereof other non-cash items 0,4 3,9 -0,3 -2,4 5,4 0,7
Interest received - 0,0 - 0,6 - -
Interest paid -0,2 -0,3 -0,4 -0,4 -0,4 -0,3
Paid income tax -1,1 0,1 -0,9 -1,0 -0,9 -1,0
Cash flow from operating activities before changes in
working capital 27,0 46,2 32,3 30,7 21,2 12,7
Cash flow from changes in working capital
Increase(-)/decrease(+) inventories -23,3 -47,5 -5,1 47,4 33,9 -229,1
Increase(-)/decrease(+) trade receivables 67,9 -30,1 39,1 52,8 -45,1 36,7
Increase(-)/decrease(+) other current receivables -20,1 18,6 21,9 -13,7 -74,4 -197,2
Increase(+)/decrease(-) trade payables 3,4 5,7 -87,6 21,6 47,6 398,2
Increase(+)/decrease(-) other current liabilites -2,5 -20,9 -5,4 -13,0 19,0 0,0
Cash flow from changes in working capital 25,4 -74,3 -37,1 95,2 -19,0 8,6
Cash flow from operating activities 52,3 -28,1 -4,8 125,9 2,2 21,3
INVESTING ACTIVITIES
Acquisition of intangible assets -7,8 -8,3 -10,2 -12,7 -14,6 -14,0
Acquisition of tangible assets -2,9 -4,7 -1,1 -2,3 -6,6 -2,0
Cash flow from investing activities -10,7 -13,0 -11,3 -14,9 -21,2 -15,9
FINANCING ACTIVITIES
Amortization of lease liabilities -2,2 -2,7 -2,1 -3,1 -2,9 -2,8
Dividend paid - -66,2 - - - -44,1
Decreased number of treasury shares - - - - - 2,1
Cash flow from financing activities -2,2 -68,9 -2,1 -3,1 -2,9 -44,7
Net cash flow for the period 39,4 -109,9 -18,2 107,9 -21,9 -39,4
Cash and cash equivalents at beginning of period 171,0 213,5 104,3 89,6 194,2 180,1
Exchange rate losses/gains in cash and cash equivalents 3,1 0,8 3,5 -3,2 7,8 -7,9
Cash and cash equivalents at end of period 213,5 104,3 89,6 194,2 180,1 132,9
Unutilized bank overdraft facility 50,0 50,0 50,0 50,0 50,0 50,0
Available funds at end of period 263,5 154,3 139,6 244,2 230,1 182,9

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 2020 2019 2019
PERFORMANCE MEASURE
Operating expenses
Selling expenses -71,5 -63,8 -124,0
Administrative expenses -33,7 -34,2 -67,5
Research and development costs -22,4 -17,1 -35,8
Operating expenses -127,6 -115,1 -227,2
Operating expenses adjusted for items affecting comparability
Operating expenses -127,6 -115,1 -227,2
Operating expenses adjusted for items affecting -127,6 -115,1 -227,2
MARGIN RATIOS
Net Sales 513,6 532,6 1 002,9
Gross Profit 136,7 166,1 331,0
Gross profit margin, % 26,6% 31,2% 33,0%
Operating profit 10,8 51,6 100,4
Operating margin, % 2,1% 9,7% 10,0%
CAPITAL AND FINANCIAL RATIOS
Equity/assets ratio
Total assets 1 554,6 1 166,7 1 121,0
Equity 732,4 766,2 810,2
Equity/assets ratio, % 47% 66% 72%
RETURN RATIOS
Equtiy per share basic/diluted
Number of outstanding shares, million 110,3 110,3 110,3
Dilution, million 1,0 1,0 1,0
Equity 732,4 766,2 810,2
Equity per share basic, SEK 6,64 6,95 7,35
Equity per share diluted, SEK 6,58 6,89 7,29
Earnings per share, before and after dilution
Avarage number of outstanding shares, million 110,3 110,3 110,3
Dilution, million 1,0 1,0 1,0
Net profit 8,0 51,6 97,7
Earnings per share, before dilution, SEK 0,07 0,47 0,89
Earnings per share, after dilution, SEK 0,07 0,46 0,88
ALTERNATIVE KEY RATIOS DEFINITION REASON FOR USE
PERFORMANCE MEASURE
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 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
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
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 electronic shelf-edge labels, 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 50 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 Small Cap. On December 31, 2019, the Pricer Group had 135 employees.

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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