Boozt

Earnings Release • Nov 14, 2019

Q3 report

JANUARY 1 – SEPTEMBER 30 2019

					Net revenue growth of 22% (local currency 22%) in the third quarter with 19% growth in Boozt.com and 90% growth in
Booztlet.com. The adjusted EBIT margin improved to -3.6% (-4.0%). For the first nine months net revenue growth was 26%
(local currency 25%) with an adjusted EBIT margin of 0.3% (0.3%).
	Jul 1 - Sep 30,	Jul 1 - Sep 30,		Jan 1 - Sep 30,	Jan 1 - Sep 30,
SEK million unless otherwise indicated	2019	2018	Change	2019	2018	Change
GROUP
Net revenue	764.1	625.0	22.3%	2,375.2	1,891.5	25.6%
Gross profit	273.0	228.9	19.2%	907.0	745.4	21.7%
EBIT	-40.8	-28.8	-41.8%	-12.8	-1.0	-1,129%
Adjusted EBIT	-27.6	-25.0	-10.6%	8.2	5.8	39.5%
Result for the period	-35.6	-22.7	-57.1%	-22.7	-9.8	-132%
Earnings per share (SEK)	-0.62	-0.40	-55.6%	-0.40	-0.17	-130%
Earnings per share after dilution (SEK)	-0.62	-0.40	-55.6%	-0.40	-0.17	-130%
Cash flow for the period	-39.5	-156.3	74.7%	-72.6	-64.8	-12.0%
Organic growth, %	22.3%	37.4%	-15.1 pp	25.6%	37.8%	-12.3 pp
Gross margin, %	35.6%	36.6%	-1.1 pp	38.2%	39.4%	-1.2 pp
EBIT margin, %	-5.3%	-4.6%	-0.7 pp	-0.5%	-0.1%	-0.5 pp
Adjusted EBIT margin, %	-3.6%	-4.0%	0.4 pp	0.3%	0.3%	0.0 pp

CEO Hermann Haraldsson says: "The softening of the apparel market, especially in Sweden and Denmark, increased over the summer which is reflected in the 19% growth of Boozt.com in the quarter. Booztlet.com however continued the strong trajectory with a 90% growth in the quarter. We are pleased that we were able to execute strongly on our main key performance indicators; Customer satisfaction stays very high, average order value is on par with last year, and the new customer intake is still increasing year over year. Our balance sheet is strong with a healthy inventory, giving us flexibility to respond to the many opportunities that arise in a challenging market."

"After a declining gross margin trend over the last couple of seasons, we have witnessed a slightly increasing gross margin in the beginning of the current Autumn/Winter season compared to last year. This is encouraging. For the quarter, however, the reported gross margin was down due to a different sales mix and an early write down of prior season Boozt.com stock. This stock can achieve a better margin on Booztlet.com during the current season, more than offsetting the negative impact from the write down. Despite the lower gross margin, the adjusted EBIT margin improved driven by scale effects within marketing and administration & other costs."

"In October we made changes to the agreement structure with a large brand partner. We entered into a consignment-like agreement with the brand partner owning the inventory in our warehouse, which has the effect that only our consignment fee will be recorded as revenue. This impacts net revenue negatively, but also improves our net working capital ratio with approximately 1 percentage point. This change together with the fact we are entering more cautiously into the fourth quarter due to softer apparel markets in Denmark and Sweden, leads us to adjust our full year outlook on net revenue growth from previously above 27% to now between 23% and 26%. The outlook for the adjusted EBIT margin is upgraded from previously above 2.3% to now above 2.5% due to operational improvements. These improvements are a small first step in a number of operational improvement initiatives we have identified. These initiatives will play out over the coming years and allow for a continued high investment in growth simultaneously with reaching our mid term EBIT margin target of 6%." Net revenue growth 38.1% Above 27% Between 23-26% Adjusted EBIT margin 2.3% Improved from 2018 Above 2.5%

Outlook for 2019	Realized 2018	Prior guidance	Guidance on 14 November 2019

*The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year.

Group - Key performance indicators (KPIs)

Jul 1 - Sep 30, Jul 1 - Sep 30, Jan 1 - Sep 30, Jan 1 - Sep 30, SEK million unless otherwise indicated 2019 2018 Change 2019 2018 Change GROUP Net revenue 764.1 625.0 22.3% 2,375.2 1,891.5 25.6% Net revenue growth (%) 22.3% 37.4% -15.1 pp 25.6% 37.8% -12.3 pp Gross margin (%) 35.6% 36.6% -1.1 pp 38.2% 39.4% -1.2 pp Fulfilment cost ratio (%) -14.4% -14.6% 0.2 pp -14.3% -13.8% -0.5 pp Marketing cost ratio (%) -11.4% -13.0% 1.7 pp -10.0% -13.1% 3.1 pp Admin & other cost ratio (%) -11.7% -11.6% -0.1 pp -11.1% -10.7% -0.4 pp Depreciation cost ratio (%) -3.4% -2.0% -1.4 pp -3.3% -1.8% -1.5 pp Adjusted admin & other -10.0% -11.0% 1.0 pp -10.4% -10.4% -0.0 pp cost ratio (%) EBIT -40.8 -28.8 -41.8% -12.8 -1.0 -1,129% EBIT margin (%) -5.3% -4.6% -0.7 pp -0.5% -0.1% -0.5 pp Adjusted EBIT -27.6 -25.0 -10.6% 8.2 5.8 39.5% Adjusted EBIT margin (%) -3.6% -4.0% 0.4 pp 0.3% 0.3% 0.0 pp	Rolling 12 months 3,267.7 28.9% 39.0% -14.1% -10.1% -10.2%
	-2.9% -10.1%
	56.3
	1.7%
	65.5
	2.0%
Earnings for the period -35.6 -22.7 -12.9 -22.7 -9.8 -12.9	29.7
Earnings per share (SEK)* -0.62 -0.40 -0.22 -0.40 -0.17 -0.22	0.52
Earnings per share after dilution (SEK)* -0.62 -0.40 -0.22 -0.40 -0.17 -0.22	0.51
Cash flow from operating activities -24.3 -164.7 140.4 20.6 -38.5 59.2	45.4
Net working capital* 365.9 268.2 97.7 365.9 268.2 97.7	365.9
Cash flow from investments -73.0 -11.5 -61.5 -113.4 -36.8 -76.6	-168.5
Net debt / -net cash* 291.3 -288.3 579.6 291.3 -288.3 579.6	291.3
Equity / asset ratio (%)* 35.4% 47.1% -11.7 pp 35.4% 47.1% -11.7 pp	35.4%
Number of employees end of period 348 298 50 348 298 50	348

Segment - Key performance indicators (KPIs)

SEK million unless otherwise indicated	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change	Rolling 12 months
Boozt.com
Net revenue	691.2	583.5	18.5%	2,183.4	1,798.8	21.4%	3,043.7
EBIT	-44.1	-25.6	-72.2%	-13.6	2.4	n.m.	60.1
EBIT margin (%)	-6.4%	-4.4%	-2.0 pp	-0.6%	0.1%	-0.8 pp	2.0%
Adjusted EBIT*	-32.0	-22.1	-45.2%	1.3	9.0	-85.7%	63.6
Adjusted EBIT margin (%)*	-4.6%	-3.8%	-0.9 pp	0.1%	0.5%	-0.4 pp	2.1%
Site visits (000)*	32,594	26,044	25.1%	96,061	77,564	23.8%	127,636
No. of orders (000)*	860	736	16.7%	2,755	2,244	22.8%	3,800
Conversion rate (%)*	2.64%	2.83%	-0.19 pp	2.87%	2.89%	-0.02 pp	2.98%
True frequency*	8.0	7.8	2.8%	8.0	7.8	2.8%	8.0
Average order value (SEK)*	801	794	0.9%	793	805	-1.5%	802
Active customers (000)*	1,557	1,242	25.4%	1,557	1,242	25.4%	1,557
No. of orders per active customer*	2.44	2.44	0.0%	2.44	2.44	0.0%	2.4
Booztlet.com
Net revenue	68.0	35.9	89.7%	171.5	80.8	112%	196.6
EBIT	6.9	3.0	133%	18.0	9.2	94.7%	20.9
EBIT margin (%)	10.2%	8.3%	1.9 pp	10.5%	11.4%	-0.9 pp	10.6%
Adjusted EBIT*	8.0	3.2	151%	19.2	9.5	101%	21.8
Adjusted EBIT margin (%)*	11.8%	8.9%	2.9 pp	11.2%	11.8%	-0.6 pp	11.1%
Site visits (000)*	4,153	1,896	119%	10,820	5,333	103%	12,685
No. of orders (000)*	105	53	98.3%	271	123	121%	314
Conversion rate (%)*	2.53%	2.79%	-0.2 pp	2.51%	2.30%	0.21 pp	2.48%
Average order value (SEK)*	654	681	-3.9%	639	664	-3.8%	632
Other
Net revenue	5.0	5.6	-11%	20.3	11.9	70%	27.4
EBIT	-3.6	-6.1	40.9%	-17.2	-12.7	-35.6%	-24.7
EBIT margin (%)	-72.8%	-109%	36.5 pp	-85.0%	-107%	21.8 pp	-90.3%
Adjusted EBIT*	-3.6	-6.1	40.9%	-12.3	-12.7	2.9%	-19.8
Adjusted EBIT margin (%)*	-72.8%	-109%	36.5 pp	-60.9%	-107%	45.9 pp	-72.4%

Group Development

Net revenue

Net revenue in the third quarter increased with 22.3% to SEK 764.1 million (625.0). Currency had a neutral impact on net revenue growth in the quarter.

The net revenue increase was supported by 18.5% growth for Boozt.com and 89.7% growth for Booztlet.com. The structural growth towards online continued in the Nordics, despite the overall apparel market struggling with weaker consumer sentiment in especially Sweden and Denmark.

Other net revenue (included in net revenue) increased to SEK 10.2 million (9.4) in the third quarter driven by higher marketing income compared to the same period last year. Other net revenue increased to SEK 29.7 million (27.4) in the first nine months driven by higher marketing income, partly offset by lower revenue from breakage of gift cards. Breakage from gift cards was re-estimated in the first quarter of 2018 also taking into account breakage revenue from previous years.

Net revenue geographical split

The largest markets Sweden and Denmark grew respectively 16.0% and 11.8%. Both countries were impacted by weaker consumer sentiment. Finland grew 48.1% while Norway grew 29.1%. The increase in Rest of Europe of 67.8% was driven by an increasing consumer appetite towards Nordic fashion brands and an increase in online marketing spending compared to the year-earlier period. There has been no change in the marketing strategy outside the Nordics, as it remains online marketing only.

Other net revenue is revenue not directly linked to the customer such as marketing income from Boozt Media Partnership and breakage from gift cards.			in online marketing spending compared to the year-earlier period. There has been no change in the marketing strategy outside the Nordics, as it remains online marketing only.
For the first nine months of 2019 net revenue increased with 25.6% to SEK 2,375.2 million (1,891.5). Currency had a positive impact of around 1 percentage point on net revenue growth relating to the strengthening of DKK, EUR and NOK compared to SEK. Net revenue – geographical split			of Europe was 89.5%.	For the first nine months net revenue growth in Denmark was 21.2%, while Sweden grew 20.0% negatively impacted by consumers holding back on spending. Finland grew 33.4% and Norway grew 21.9% impacted by Booztlet.com not selling in Norway. The increase in Rest
	Jul 1 - Sep 30,	Jul 1 - Sep 30,		Jan 1 - Sep 30,	Jan 1 - Sep 30,
SEK million	2019	2018	Change	2019	2018	Change
Sweden	268.2	231.1	16.0%	821.2	684.6	20.0%
Denmark	237.5	212.5	11.8%	792.5	653.8	21.2%
Norway	116.2	90.0	29.1%	356.7	292.6	21.9%
Finland Rest of Europe	82.7 59.6	55.9 35.5	48.1% 67.8%	211.3 193.5	158.5 102.1	33.4% 89.5%
TOTAL Net revenue	764.1	625.0	22.3%	2,375.2	1,891.5	25.6%

Net revenue – geographical split

Gross profit

The gross profit increased with 19.2% to SEK 273.0 million (228.9) during the quarter. The gross margin decreased to 35.6% (36.6%).

The decrease in gross margin was primarily driven by a different sales mix with less consignment sales, which have a 100% gross margin, and an early write down of prior season Boozt.com stock, which has subsequently been moved to Booztlet.com. The written down stock can achieve a better margin on Booztlet.com during the current Autumn/Winter season, more than offsetting the negative impact from the write down. The trading gross margin for the quarter improved compared to last year due to higher margin during the first part of the Autumn/Winter season as the season started without the delay experienced last year.

For the first nine months gross profit increased with 21.7% to SEK 907.0 million (745.3). The gross margin decreased to 38.2% (39.4%).

The decrease in gross margin was primarily driven by elevated promotional activities to ensure a continuously healthy stock composition in a market affected by high inventory levels. The first quarter was impacted by late start to the autumn/winter 2018 season which continued to impact the market throughout the winter months, while the second quarter was negatively impacted by a late start to the summer in the Nordics compared to last year. The third quarter was negatively impacted by sales mix with less consignment sales and an early write down of prior season Boozt.com stock, which has subsequently been moved to Booztlet.com. This was partly offset by higher gross margin when the Autumn/Winter season started compared to last year.

EBIT

EBIT decreased to SEK -40.8 million (-28.8) in the third quarter, while the EBIT margin decreased 0.7 percentage point to -5.3% (-4.6%).

The decline in the gross margin was partly offset by a lower marketing cost ratio. The marketing cost ratio decreased to 11.4% (13.0%) driven by leverage on offline marketing spend.

The fulfilment cost ratio decreased to 14.4% (14.6%). Excluding IFRS 16 depreciation impact the fulfilment cost ratio increased around 0.6 percentage point. The increase was driven by costs related to the ongoing implementation of our new internally developed robot management system, which will improve the control of the robots in the fulfilment centre compared to the existing system. Further, a slight inflation on overall distribution costs impacted the fulfilment cost ratio.

The admin & other cost ratio increased to 11.7% (11.6%). Excluding IFRS 16 depreciation impact the admin & other cost ratio increased around 0.9 percentage point. The increase was driven by higher social charges and sharebased compensation related to the Group's long-term incentive programs. Admin & other costs were negatively impacted by higher personnel costs driven by a strengthening of the personnel teams around Booztlet.com and the categories Beauty, Sports and Kids as well as increased rent following the HQ move in the second quarter 2019. These higher costs were offset by general scale effects and a lower loss in the physical stores.

For the first nine months EBIT decreased to SEK -12.8 million (-1.0), while the EBIT margin decreased 0.5 percentage point to -0.5% (-0.1%). The decrease can be explained by a higher loss in the loss-making Beauty by Boozt store as well as higher social charges and sharebased compensation related to the Group's long-term incentive programs. Compared to last year the EBIT margin was negatively by impacted by 0.4 percentage point (SEK 8.8 million) from the loss-making Beauty by Boozt physical stores.

Adjusted EBIT

Adjusted EBIT amounted to SEK -27.6 million (-25.0) in the third quarter. The adjusted EBIT margin improved 0.4 percentage point to -3.6% (-4.0%) driven by the adjusted admin & other cost ratio which improved to 10.0% (11.0%). Excluding IFRS 16 depreciation impact the adjusted admin & other cost ratio improved around 0.2 percentage point.

The adjustment consists of social charges related to the Group's warrant program 2015/2025 and LTI program 2019/2022 of SEK -7.7 million (-3.4). The reserve for social charges fluctuates between periods since it, among other things, is affected by the share price of the company and the probability of number of vested warrants. Included in this adjustment is also IFRS 2 costs for share-based payments related to the warrant program 2015/2025 and LTI program 2019/2022 of SEK -5.4 million (-0.4).

For the first nine months adjusted EBIT amounted to SEK 8.2 million (5.8). The adjusted EBIT margin was 0.3% (0.3%). Compared to last year the adjusted EBIT margin was negatively impacted by 0.2 percentage point (SEK 3.9 million) from the loss-making Beauty by Boozt physical stores.

The adjustment consists of social charges related to the Group's warrant program 2015/2025 of SEK -10.3 million (-5.4) and IFRS 2 costs for share-based payments related to the warrant program 2015/2025 and LTI program 2019/2022 of SEK -5.8 million (-1.5). The adjustment also consists of one-off costs affecting comparability related to the closure of the smaller Beauty by Boozt store in Roskilde in Q2 of SEK 4.9 million.

IFRS 16 implementation

Following implementation of IFRS 16 the operating cost and depreciation ratios are compiled differently from last year as leased assets are reported on the balance sheet as right-of-use assets and lease liabilities. More information can be found in the 2018 Annual Report (note 2).

The Group has signed an agreement to extend its current warehouse facilities as of Q4 2020. The agreement will have substantial IFRS 16 impact when the facility is handed over to the Group. The expected IFRS 16 impact is approximately 154 million in right-of-use assets and lease liabilities as the agreement length is set to 12 years.

Financial items

The Group's financial costs amounted to SEK -2.8 million (-0.6) and financial income amounted to SEK -0.0 million (2.3) in the quarter. The third quarter last year was impacted by changes in fair value of the Group's derivatives, while no derivatives were held this year.

The financial items are attributable to interests on interest bearing liabilities as well as changes in fair value of the Group's derivatives.

Net financial items amounted to SEK -2.8 million (-1.7).

For the first nine months financial costs amounted to SEK -7.8 million (-10.2) and financial income amounted to SEK -0.0 million (3.8). Net financial items amounted to SEK -7.8 million (-6.4).

See note 3 for information on IFRS 16 impact on financial items.

Tax

Tax amounted to SEK 7.9 million compared to SEK 4.4 million in the third quarter last year. Tax for the period consisted of an increase in the deferred tax asset related to tax losses carried forward. Deferred tax assets for tax losses carried forward are reported to the extent that it is likely they will be utilised.

For the first nine months tax amounted to SEK -2.0 million compared to SEK -2.3 million last year.

The Group expects to utilise the deferred tax assets recognised within the coming three years. There is no time limitation for the deferred tax asset relating to tax losses carried forward.

Net profit

The net result for the quarter totalled SEK -35.6 million (-22.7). Earnings per share before and after dilution amounted to SEK -0.62 (-0.40).

For the first nine months the net result totalled SEK -22.7 million (-9.8). Earnings per share before and after dilution amounted to SEK -0.40 (-0.17).

Working capital

The Group realised a net working capital of SEK 365.9 million (268.2) equivalent to 11.2% (10.6%) of the net revenue for the last twelve months. The increase in net working capital was primarily driven by lower accounts payable partly offset by lower inventory growth and higher accrued expenses and prepaid income from increased level of reservations for returns. Also, the Group has accrued income of approximately SEK 35 million in reverse customs from returns in Norway. Lower accounts payable was driven by a higher maturity of the campaign goods as less campaign stock was bought during the Spring/Summer 2019 season compared to last year. This means a lower share of the current inventory is financed by our suppliers.

Cash flow

Cash flow from operating activities amounted to SEK -24.3 million (-164.7). The improvement compared with last year was driven by the limited growth in working capital compared to the same quarter last year. Cash flow from changes in working capital amounted to SEK -18.8 million (-141.7) impacted by lower inventory growth. Further, the operating profit after adjustment for non-cash items increased by 19.8 million compared to the same quarter last year, which also contributed to the improved cash flow from operating activities.

Cash flow from investing activities amounted to SEK -73.0 million (-11.5) driven by the build-out of the phase 3 AutoStore expansion in the fulfilment centre.

Cash flow from financing activities amounted to SEK 57.8 million (19.9) in the quarter and was attributable to a new loan to the phase 3 AutoStore expansion partly offset by repayments according to plan related to the automation of the fulfilment centre and a change in the lease liability from implementation of IFRS 16.

Cash flow for the quarter amounted to SEK –39.5 million (-156.3).

For the first nine months cash flow amounted to SEK -72.6 million (-64.8). Cash flow from operating activities increased to SEK 20.6 million (-38.5) driven by lower growth in working capital and improved operating profit after adjustments for non-cash items.

Financial position

Total assets increased to SEK 2,440.3 million (1,735.5) driven by higher fixed assets from implementation of IFRS 16 but also a 22% increase in inventory value.

Fixed assets increased to SEK 661.9 million (141.5). The increase was driven by the implementation of IFRS 16 resulting in a right of use asset of SEK 433.0 million (and corresponding lease liabilities) and the phase 3 expansion of AutoStore in the fulfilment centre. The right of use asset is primarily made up of leasing contracts relating to the premises for the fulfilment centre in Ängelholm (equivalent to around 70% of the total lease liability), the headquarter in Hyllie and the physical retail stores. In addition, the Group has accounted for other essential lease agreements regarding cars, trucks and machines. Equipment increased compared to last year due to investments made in the Group's fulfilment centre.

Deferred tax assets decreased to SEK 71.4 million (90.1) and consist of capitalised tax losses carried forward.

Inventory increased with 22%, slightly less than the revenue growth, driven by a lower up-front buy compared to last year.

Total equity and liabilities increased to SEK 2,440.3 million (1,735.5) driven primarily by non-current liabilities from implementation of IFRS 16 and higher accrued expenses and prepaid income from higher reservations for returns.

Development by segment

Boozt.com

	Q3 report – January 1 – September 30, 2019
Boozt.com
SEK million unless otherwise indicated	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change	Rolling 12 months
Net revenue	691.2	583.5	18.5%	2,183.4	1,798.8	21.4%	3,043.7
EBIT	-44.1	-25.6	-72.2%	-13.6	2.4	n.m.	60.1
EBIT margin (%)	-6.4%	-4.4%	-2.0 pp	-0.6%	0.1%	-0.8 pp	2.0%
Adjusted EBIT	-32.0	-22.1	-45.2%	1.3	9.0	-85.7%	63.6
Adjusted EBIT margin (%)	-4.6%	-3.8%	-0.9 pp	0.1%	0.5%	-0.4 pp	2.1%
Site visits (000)	32,594	26,044	25.1%	96,061	77,564	23.8%	127,636
No. of orders (000)	860	736	16.7%	2,755	2,244	22.8%	3,800
Conversion rate (%)	2.64%	2.83%	-0.19 pp	2.87%	2.89%	-0.02 pp	2.98%
True frequency	8.0	7.8	2.8%	8.0	7.8	2.8%	8.0
Average order value (SEK)	801	794	0.9%	793	805	-1.5%	802
Active customers (000)	1,557		1,242 25.4%	1,557		1,242 25.4%	1,557
No. of orders per active customer	2.44	2.44	0.0%	2.44	2.44	0.0%	2.44

Rounding differences may affect the summations. See Note 2 for additional information.

Net revenue

Net revenue increased with 18.5% to SEK 691.2 million (583.5) in the quarter. For the first nine months net revenue increased with 21.4% to SEK 2,183.4 million (1,798.8).

The overall market for apparel in Sweden and Denmark has been challenged by weaker consumer sentiment. The categories Sport and Beauty grew the strongest in the quarter.

The first half of the quarter was impacted by elevated promotional activities due to the high inventory levels for Spring/Summer, while the second half of the quarter had a normal level of promotional activities as the Autumn/Winter season began.

Average order value increased 1% to SEK 801 (794) for the quarter. Higher gross average order value was partly offset by slightly higher returns in line with expectations as existing customers, who have a higher return rate than new customers, represent a larger share of the net revenue.

New customer intake in the quarter was higher than last year.

True frequency developed positively with an increase to 8.0 (7.8). Customer satisfaction continued at a high level as shown by a Trustpilot score of 9.2 (9.2) and a Net Promoter Score of 73 (73).

EBIT & Adjusted EBIT

EBIT decreased to SEK -44.1 million (-25.6) for the quarter, and the EBIT margin decreased 2.0 percentage point to -6.4% (-4.4%). The decrease was driven by lower gross margin from less consignment sales, which have a 100% gross margin, and an early write down of prior-season stock, which has subsequently been moved to Booztlet.com. Further, higher costs related to share based payments impacted EBIT negatively. This was partly offset by leverage on offline marketing costs.

Adjusted EBIT decreased to SEK -32.0 million (-22.1), while the adjusted EBIT margin decreased to -4.6% (-3.8%). The adjustment relates to social charges and IFRS 2 costs for share based payments related to the Group's 2015/2025 warrant program and LTI 2019/2022 program.

For the first nine months EBIT decreased to SEK -13.6 million (2.4), and the EBIT margin decreased 0.8 percentage point to -0.6% (0.1%). Adjusted EBIT decreased to SEK 1.3 million (9.0), while the adjusted EBIT margin decreased to 0.1% (0.5%). The lower adjusted EBIT margin was primarily driven by lower gross margin which was partly offset by a lower marketing cost ratio driven by leverage on offline marketing costs.

	Jul 1 - Sep 30,	Jul 1 - Sep 30,		Jan 1 - Sep 30,	Jan 1 - Sep 30,
SEK million	2019	2018	Change	2019	2018	Change
Sweden	239.8	214.1	12.0%	751.9	649.2	15.8%
Denmark	205.6	190.5	7.9%	698.7	602.3	16.0%
Norway	116.2	90.0	29.1%	356.7	292.6	21.9%
Finland	77.1	53.5	44.0%	198.9	152.8	30.2%
Rest of Europe	52.6	35.4	48.7%	177.3	101.9	74.0%
TOTAL Net revenue	691.2	583.5	18.5%	2,183.4	1,798.8	21.4%

The Boozt.com segment includes operations related to the Boozt.com site. More than 95% of the revenue comes from third party brands where the Group carries the inventory risk.

Booztlet.com

	Q3 report – January 1 – September 30, 2019
Booztlet.com
SEK million unless otherwise indicated	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change	Rolling 12 months
Net revenue	68.0	35.9	89.7%	171.5	80.8	112%	196.6
EBIT	6.9	3.0	133%	18.0	9.2	94.7%	20.9
EBIT margin (%)	10.2%	8.3%	1.9 pp	10.5%	11.4%	-0.9 pp	10.6%
Adjusted EBIT	8.0	3.2	151%	19.2	9.5	101.1%	21.8
Adjusted EBIT margin (%)	11.8%	8.9%	2.9 pp	11.2%	11.8%	-0.6 pp	11.1%
Site visits (000)	4,153	1,896	119%	10,820	5,333	102.9%	12,685
No. of orders (000)	105	53	98.3%	271	123	121%	314
Conversion rate (%)	2.53%	2.79%	-0.2 pp	2.51%	2.30%	0.21 pp	2.48%
	654	681	-3.9%	639	664	-3.8%	632

Net revenue

Net revenue increased with 89.7% to SEK 68.0 million (35.9) in the quarter and was attributable to an increased focus on attracting new customers in the off-price segment (customers with a high interest in discounted goods) as well as providing incentives for active Booztlet.com customers to increase their buying frequency.

EBIT & Adjusted EBIT

Boozt.com stock. This was partly offset by higher marketing costs as the building of the Booztlet.com brand has been accelerated compared to the same period last year.

Adjusted EBIT increased to SEK 8.0 million (3.2), while the adjusted EBIT margin increased to 11.8% (8.9%). The adjustment relates to social charges and IFRS 2 costs for share based payments related to the Group's 2015/2025 warrant program and LTI 2019/2022 program.

compared to last year Booztlet.com was also marketed outside the Nordics. For the first nine months net revenue increased with 112%						warrant program and LTI 2019/2022 program.
			For the first nine months EBIT increased to SEK 18.0 million (9.2), while the EBIT margin decreased to 10.5% (11.4%). Adjusted EBIT increased to SEK 19.2 million (9.5), while the adjusted EBIT margin decreased to 11.2% (11.8%). The decrease in the EBIT and the adjusted EBIT margin is a
to SEK 171.5 million (80.8).
EBIT & Adjusted EBIT		result of the increased relative marketing spend for Booztlet.com in order to support the accelerated growth
EBIT increased to SEK 6.9 million (3.0), while the EBIT
margin increased to 10.2% (8.3%) for the quarter. The			of this segment.
increase was driven by higher gross margin, which partly
was aided by the early write-down of prior season
SEK million	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change
Sweden	28.3	17.0	66.9%	69.3	35.3	96.1%
Denmark	27.0	16.4	64.8%	73.6	39.6	85.8%
Norway	-	-	-	-	-	-
Finland	5.7	2.4	141%	12.5	5.7	119%
Rest of Europe	7.0	0.1	4,765%	16.2	0.2	7,056%
TOTAL Net revenue	68.0	35.9	89.7%	171.5	80.8	112%

Other

					Q3 report – January 1 – September 30, 2019
Other
SEK million unless otherwise indicated	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change	Rolling 12 months
Net revenue	5.0	5.6	-11.3%	20.3	11.9	70.3%	27.4
EBIT	-3.6	-6.1	40.9%	-17.2	-12.7	-35.6%	-24.7
EBIT margin (%)	-72.8%	-109%	36.5 pp	-85.0%	-107%	21.8 pp	-90.3%
Adjusted EBIT	-3.6	-6.1	40.9%	-12.3	-12.7	2.9%	-19.8
Adjusted EBIT margin (%)	-72.8%	-109%	36.5 pp	-60.9%	-107%	45.9 pp	-72.4%
Rounding differences may affect the summations. See Note 2 for additional information.

Net revenue

Net revenue decreased with 11.3% to SEK 5.0 million (5.6) in the quarter. The decrease is driven by the closure of the Beauty by Boozt store in Roskilde in the second quarter of 2019.

For the first nine months net revenue increased with 70.3% to SEK 20.3 million (11.9). The increase is mainly attributable to the opening of the new offline Beauty by Boozt store in Copenhagen in June 2018.

EBIT and Adjusted EBIT

For the first nine months EBIT decreased to SEK -17.2 million (-12.7) and adjusted EBIT improved to SEK -12.3 million (-12.7). The adjustment consists of one-off costs including write-downs related to the closure of the Beauty by Boozt store in Roskilde, Denmark in the second quarter of 2019.

Limiting exposure to physical retail

The first Beauty by Boozt store opened in Roskilde, Denmark in December 2016 and served the purpose of strengthening the relationship with the beauty brands helping build a strong offering online on Boozt.com. As the new larger store in Copenhagen can serve that purpose alone, the store in Roskilde was closed by the end of the second quarter 2019. This resulted in one-off costs of SEK 4.9 million.

	Boozt store in Copenhagen in June 2018.		Denmark in December 2016 and served the purpose of
The Beauty by Boozt store continues to be impacted by low traffic and conversion, while the Booztlet store is showing a positive development.			strengthening the relationship with the beauty brands helping build a strong offering online on Boozt.com. As the new larger store in Copenhagen can serve that purpose alone, the store in Roskilde was closed by the
EBIT and Adjusted EBIT			end of the second quarter 2019. This resulted in one-off
EBIT and Adjusted EBIT improved to SEK -3.6 million (-6.1)		costs of SEK 4.9 million.
in the quarter. No adjustments were made in the quarter.
The positive development was driven by operational
improvements in the Booztlet store and closure of the
Beauty by Boozt store in Roskilde in Q2 2019.
SEK million	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change
Sweden	-	-	-	-	-	-
Denmark	5.0	5.6	-11.3%	20.3	11.9	70.3%
Norway	-	-	-	-	-	-
	-	-	-	-	-	-
Finland			-	-	-	-
Rest of Europe TOTAL Net revenue	- 5.0	- 5.6	-11.3%	20.3	11.9	70.3%

Other information

Significant events during the third quarter

Acquisition of Touchlogic and inauguration of Boozt Innovation Lab

Boozt AB signed an agreement to acquire 100% of the shares in Touchlogic. Touchlogic is an app and mobile web development company based out of Copenhagen, Denmark with 11 developers. Touchlogic will strengthen current front-end capabilities regarding app and mobile web and enable an acceleration of the development as well as foster further innovation regarding app usability and functionality. The offices of Touchlogic now serves as the home of the new Boozt Innovation Lab, which will be separated from the daily operations. The focus is on developing innovative tools and applications to stay in the forefront of meeting the increasing expectations from customers and partners as well as improving the internal workflows. The purchase price, that includes a three year earn-out, is expected to be around SEK 10 million. Closing of the transaction took place in October 2019. The acquisition is assessed as non-material.

Change to Group Management

After almost 9 years with Boozt, CFO and co-founder Allan Junge Jensen has decided to pursue a career outside of Boozt. Allan will leave Boozt by the end of January 2020.

Sandra Gadd was subsequently appointed as CFO and will assume her new position as of December 1, 2019. Sandra is Swedish and 36 years old. She holds an MBA degree from Lund University and has been an Authorized Public Accountant. Sandra Gadd has been with Boozt since October 2016 where she took the position as Transformation Finance Manager, responsible for the internal financial preparations for Boozt's IPO on Nasdaq Stockholm in May 2017. In January 2018, Sandra Gadd was appointed Business Development Director. Before joining Boozt, Sandra had been working with Deloitte for 8 years in the audit practice as Authorized Public Accountant and Finance Manager.

R&D partnership with AutoStore and Element Logic

Boozt has strengthened its ties to the automation partner AutoStore and the automation service partner Element Logic with a R&D partnership to ensure continued progress in increased productivity and adoption of the latest advancements within the technology. In close cooperation new technology can be developed and tested in a controlled environment limiting the potential risk of adopting new and improved technology. A key benefit for Boozt is the early access to new technology.

Agreement with Catena to build new fulfilment centre

The existing fulfilment centre in Ängelholm is expected to be fully build out with automation during 2020. The new fulfilment centre, of approximately 23.000 m² , will be situated next to the current and is expected to be handed over and be operational by the end of 2020.

Events after the reporting date

Change to Group Management

After more than 8 years with Boozt Niels Hemmingsen left his position as Chief Operating Officer on November 1, 2019. Niels will stay on in an advisor role until mid-2020. The position as Chief Operating Officer will be split to reflect the increased complexity of the role's many responsibilities and to reflect that Boozt is entering a phase with more focus on optimizing the operational processes compared to previous years' focus on handling the high relative growth. Lars Lindgaard, previously Distribution Director, will take up the position as Head of Fulfilment Operations and report directly to CEO Hermann Haraldsson.

Appointment of Nomination Committee

The Nomination Committee has been formed in accordance with the principles adopted by the Annual General Meeting and has the following composition:

• Claus Wiinblad (representing ATP), Chairman of the Nomination Committee
• Daniel Ahlstrand (representing Verdane Capital VII K/S)
• Johannes Wingborg (representing Länsförsäkringar)

Henrik Theilbjørn, Chairman of the Board of Boozt AB (publ).

Employees

Number of employees was 348 (298) at the end of the period equivalent to an increase of 17%. The increase was driven by a strengthening of the personnel teams around the categories Sport, Beauty, Kids and Booztlet.com, partly offset by a lower number of employees in the physical stores. The average number of employees was 329 (270) for the quarter equivalent to an increase of 22%.

Seasonal variances

Seasonal variances affect the Group. However, each quarter is comparable between years. Traditionally the fourth quarter has the highest net revenue, whereas the first quarter has the lowest. Inventory levels in the industry can be affected by an early or late start to the season impacting the promotional activities needed to clear inventory. To illustrate the long-term development trend the Group reports rolling twelve months' figures, where applicable.

Parent company

Boozt AB (publ), Corp. Id. No. 556793-5183, is the parent company of the Group. Boozt AB (publ) is incorporated and registered in Sweden.

Since May 31, 2017, Boozt AB (publ) is listed on Nasdaq Stockholm Mid Cap.

The address to the head office is Hyllie Boulevard 35, 215 37 Malmö, Sweden (new address as of May 1, 2019).

Net revenue of the parent company amounted to SEK 9.5 million (15.7) during the quarter. The parent company has invoiced fees for management services in accordance with the Group's intra company agreements to other Group companies during the quarter. Costs for the period are mainly attributable to costs related to salaries for Group Management and remuneration to the Board of Directors.

The result for the quarter totalled SEK -4.9 million (-0.5). The parent company has a Group internal receivable respectively a liability to different counterparties within the Group, which together with shares in the subsidiary Boozt Fashion AB and equity constitutes the majority of the financial position of the Company.

Risks and uncertainties

Boozt has developed a risk management framework with the purpose to strengthen the structure of how risk management is carried out throughout the Group. Identified risks are reviewed by the Board of Directors continuously. There is no recognizable risk for the Group's ability to continue as a going concern. All identified risks as well as the risk management process are described in the Group's Annual Report.

A risk review has been conducted during the quarter resulting in no changes to the Group's top 20 risks.

Related party transactions

resulting in no changes to the Group's top 20 risks.
Related party transactions
In the quarter there were transactions classified as related
party transactions as management purchased shares from
the 2015/2025 warrant program totalling SEK 3.0 million.
SEK million unles otherwise stated	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30,	2018 Rolling 12 months
Management of Boozt AB (publ) (PDMR)	-	-	-	-	-
Purchase of warrants 2018/2021 program	-	-	-	6.3	-
Purchase of shares 2015/2025 program	3.0	15.9	3.0	15.9	3.0
Total value of transactions with related parties	3.0	15.9	3.0	22.2	3.0
The Boozt share
The Boozt share is traded under the ticker BOOZT and

The Boozt share

The Boozt share is traded under the ticker BOOZT and with the ISIN-code SE0009888738.

The average turnover of the Boozt share on Nasdaq Stockholm was 54,982 shares per day during the third quarter. As per September 30, 2019 the company had approximately 4,300 shareholders, whereof the largest shareholders were Sampension (9.7%), Ruane, Cunniff & Goldfarb (9.0%), ATP (8.5%), Invesco (6.6%), Ferd (6.3%) and Verdane Capital (5.4%).

The total number of shares at the end of the reporting period amounted to 57,370,853, with a quota value of SEK 0.0833 per share. From the 2015/2025 warrant program 181,465 warrants were outstanding at the end of the reporting period. Each warrant in the 2015/2025 gives a right to purchase 12 shares, meaning a total of 2,177,580 shares. From the 2018/2021 warrant program 1,137,347 warrants were outstanding at the end of the period. Each warrant in the 2018/2021 gives a right to purchase 1 share, meaning a total of 1,113,347 shares.

There is one class of shares in Boozt AB (publ). There are no shares with special rights or preferences. Beyond shares, the Company has issued warrants (right to acquire shares under specific terms and conditions).

All shares in the Company are listed.

The market value for the Company as per September 30, 2019 amounted to SEK 3,895 million.

Warrant program 2015/2025

By end of third quarter 2019 the outstanding number of warrants in program 2015/2025 was 110,851 inclusive 55 unallocated. In addition, the Group had 72,310 warrants in own portfolio, to offset any cash flow impact of the exercise of warrants. Participants leaving the program increased the number of warrants kept in own portfolio with 7,650 warrants. However, the Group has not utilized any warrants in own portfolio to offset the cash flow impact from social charges on warrants exercise.

For more information on the warrant program 2015/2025 please see the annual report 2018.

Warrant program 2018/2021

The Annual General Meeting on 27 April 2018 in Boozt AB (publ) resolved on a long-term incentive program by way of a directed issue of warrants to a wholly owned subsidiary and approval of transfer of warrants from the subsidiary to group management and key employees (the "Warrants Program 2018/2021"). In accordance with the terms and conditions for Warrants Program 2018/2021, the subsidiary has subscribed for and transferred a total of 1,137,347 warrants to group management and key employees. Each warrant in Warrants Program 2018/2021 entitles to subscription of one share in the company at a subscription price of SEK 96.31 corresponding to 126 per cent of the volume weighted average price according to Nasdaq Stockholm's official price list for shares in the company during the period as from 18 May 2018 to and including 24 May 2018. Subscription of shares by virtue of the warrants may be affected as from 1 June 2021 up to and including 14 June 2021. The transfer of the warrants to the participants in Warrants Program 2018/2021 has been made at a price per warrant of SEK 9.18, corresponding to the fair market value of a warrant as of 31 May 2018 as established by Öhrlings Pricewaterhouse Coopers AB in accordance with the Black Scholes formula. Hence no IFRS 2 cost will affect the Group, and no provisions will be made for social charges.

More information can be found on www.booztfashion.com.

LTI program 2019/2022

The Extraordinary Annual General Meeting on 24 June 2019 in Boozt AB (publ) resolved on a long-term incentive program by way of approval of transfer of performance shares to group management and key employees (the "LTI Program 2019/2022"). The LTI Program 2019/2022 entitles the company's CEO, Group Management and key employees to receive shares in the company at a subscription price of SEK 0.00 if certain performance measures are met at the end of the performance period 31 December 2021. The vesting takes place 24 June 2022, where after the performance shares can be distributed to the participants in the program. The maximum number of performance shares that can be distributed to the participants are 406,994. The LTI program 2019/2022 is classified as an IFRS 2 program, whereas the costs associated with the program will be distributed over the period from July 2019 until the end of June 2022. In addition, the Group will account for provisions for social charges during the expected lifetime of the LTI program.

By closing date Sep 30, the Group considers 93,334 performance shares to have been vested with the following IFRS2 impact: For non-market vesting conditions the IFRS2 cost is set at 61.7 SEK per performance share and for market vesting conditions the IFRS 2 cost is calculated with a Monte Carlo model setting the IFRS 2 cost to SEK 40.1 per performance share. The underlying assumptions in the Monte Carlo model are a risk free interest rate of -0.591% and a volatility of 37.7% In addition, the Group applies probabilities to the calculation of the total amount of vested performance shares per closing date taking into consideration survival rate of employees (hence performance shares), a probability of reaching the pre-determined targets for achieving a grant of performance shares in 2022 and a probability for achieving the net working capital constraints as set out in the terms and conditions of the program.

More information can be found on www.booztfashion.com.

Annual General Meeting

The Board of Directors has decided that the Annual General Meeting will be held in Malmö on May 7, 2020.

Outlook

The outlook for the Group is adjusted compared to the Q2 report. The Group now expects net revenue growth for 2019 of between 23% and 26% (previously above 27%). The adjustment is due to a softer apparel market in Denmark and Sweden and a change of agreement structure with a large brand partner negatively impacting net revenue growth. The outlook for the adjusted EBIT margin for 2019 is, however, upgraded to above 2.5% from previously above 2.3% due to operational improvements. The Other segment is expected to have a

negative impact on adjusted EBIT of around SEK 15 million in 2019 (SEK 20 million including one-off costs from closure of the Beauty by Boozt store in Roskilde as previously communicated). The outlook assumes constant currencies from the time of this announcement and for the remainder of the financial year.

The Group maintains the medium term financial targets adopted by the Board of Directors at the time of the listing of the Group.

NET REVENUE	The Group targets annual net revenue growth in
GROWTH	the range of 25-30% in the medium term
ADJUSTED EBIT MARGIN	• The Group targets an adjusted EBIT margin exceeding 6% in the medium term • The Group expects to increase the adjusted EBIT margin annually as the cost base is further leveraged by net revenue growth

Consolidated income statement
SEK million unless otherwise indicated	Note	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Rolling 12 months
OPERATING INCOME
Net revenue	2	764.1	625.0	2,375.2	1,891.5	3,267.7
Other operating income		1.2	-	-	0.1	-
Total operating income	2	765.4	625.0	2,375.2	1,891.7	3,267.7
OPERATING COSTS
Goods for resale		-492.4	-396.0	-1,468.2	-1,146.3	-1,992.9
Other external costs		-224.3	-199.7	-666.8	-590.4	-911.1
Cost of personnel		-63.4	-42.1	-172.4	-121.2	-208.3
Depreciations and impairment losses		-26.1	-12.3	-79.3	-34.8	-93.5
Other operating costs		-	-3.6	-1.3	-	-5.6
Total operating costs		-806.2	-653.7	-2,388.0	-1,892.7	-3,211.4
OPERATING PROFIT/LOSS (EBIT)	2	-40.8	-28.8	-12.8	-1.0	56.3
FINANCIAL INCOME AND EXPENSES
Financial income	3	-0.0	2.3	-0.0	3.8	0.5
Financial expenses	3	-2.8	-0.6	-7.8	-10.2	-8.4
Net financial items		-2.8	1.7	-7.8	-6.4	-7.9
PROFIT/LOSS BEFORE TAX	2	-43.5	-27.1	-20.6	-7.4	48.4
Income tax		7.9	4.4	-2.0	-2.3	-18.7
PROFIT/LOSS FOR THE PERIOD		-35.6	-22.7	-22.7	-9.8	29.7
ATTRIBUTABLE TO:
Parent company's shareholders		-35.6	-22.7	-22.7	-9.8	29.7
Average number of shares (000)		57,214	56,670	57,127	56,450	57,116
Average number of shares after dilution (000)		57,911	57,636	57,734	57,673	57,717
Earnings per share (SEK)		-0.62	-0.40	-0.40	-0.17	0.52
Earnings per share after dilution (SEK)		-0.62	-0.40	-0.40	-0.17	0.51

Consolidated income statement

Consolidated statement of comprehensive income

Rounding differences may effect the summations
Consolidated statement of comprehensive income
	Jul 1 - Sep 30,	Jul 1 - Sep 30,	Jan 1 - Sep 30,	Jan 1 - Sep 30,	Rolling 12
SEK million	2019	2018	2019	2018	months
PROFIT/LOSS FOR THE PERIOD	-35.6	-22.7	-22.7	-9.8	29.7
ITEMS THAT MAY BE RE-CLASSIFIED TO THE INCOME STATEMENT:
Translation differences
	0.0	0.0	0.0	0.1	0.1
Total earnings after tax	-35.6	-22.6	-22.6	-9.7	29.8
TOTAL COMPREHENSIVE RESULT FOR THE	-35.6	-22.6	-22.6	-9.7	29.8
PERIOD
ATTRIBUTABLE TO
Parent company's shareholders	-35.6	-22.6	-22.6	-9.7	29.8
Rounding differences may affect the summations.

Consolidated statement of financial position

SEK million	Note	Sep 30, 2019	Sep 30, 2018	Dec 31, 2018
ASSETS
Non-current assets
Intangible assets
Web platform	4	57.2	34.2	40.4
		57.2	34.2	40.4
Tangible assets
Right of use asset		433.0	-	-
Machinery and equipment	4	228.9	141.5	176.2
		661.9	141.5	176.2
Financial assets
Deposits	3	12.4	12.3	12.3
Deferred tax asset		71.4	90.1	73.4
		83.8	102.4	85.7
Total non-current assets		802.9	278.1	302.2
Current assets
Inventory		1,169.8	962.4	984.9
Accounts receivable	3	4.8	6.3	26.6
Other receivables	3	96.1	80.9	110.8
Current tax assets		0.9	0.5	0.6
Prepaid expenses and accrued income		69.9	42.4	40.1
Cash and cash equivalents	3	296.0	364.9	368.3
Total current assets		1,637.4	1,457.4	1,531.2
TOTAL ASSETS		2,440.3	1,735.5	1,833.5
EQUITY AND LIABILITIES
Equity
Share capital		4.8	4.8	4.8
Other capital contributions		1,177.2	1,160.9	1,161.1
Reserves		0.4	0.2	0.3
Retained earnings including profit for the period		-318.4	-348.1	-295.7
Equity attributable to parent company shareholders		863.9	817.8	870.4
Non-current liabilities
Interest bearing liabilities	3	123.2	57.2	75.0
Lease liabilities	3	394.3	-	-
Other provisions		13.6	16.2	4.3
Total non-current liabilities		531.1	73.4	79.3
Current liabilities
Interest bearing liabilities	3	26.0	19.4	35.5
Lease liabilities	3	43.8	-	-
Accounts payable	3	529.6	565.7	521.2
Other liabilities	3	96.7	71.0	86.8
Derivatives	3	-	0.5	-
Accrued expenses and prepaid income		349.2	187.5	240.3
		1,045.3	844.2	883.8
Total current liabilities Total liabilities		1,576.4	917.7	963.0

Consolidated statement of changes in equity

Q3 report – January 1 – September 30, 2019
Consolidated statement of changes in equity
				Profit brought forward	Total equity attributable
		Other capital		incl. period's	to parent company
SEK million	Share capital	contributions	Reserves	profit/loss for the year	shareholders
Equity brought forward Jan 1, 2018	4.7	1,124.3	0.1	-338.3	790.8
Profit for the period	-	-	-	-9.8	-9.8
Other comprehensive income	-	-	0.1	-	0.1
COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD	-	-	0.1	-9.8	-9.7
Share capital increases	0.1	24.6	-	-	24.7
Sell of shares in own portfolio	-	10.4	-	-	10.4
Share based compensation	-	1.5	-	-	1.5
Total transactions with owners	0.1	36.6	-	-	36.6
Equity carried forward Sep 30, 2018		4.8 1,160.9	0.2	-348.1	817.8
Rounding differences may effect the summations.

Rounding differences may effect the summations.
				Profit brought forward	Total equity attributable
		Other capital		incl. period's	to parent company
SEK million	Share capital	contributions	Reserves	profit/loss for the year	shareholders
Equity brought forward Jan 1, 2019	4.8	1,161.1	0.3	-295.7	870.4
Profit for the period	-	-	-	-22.7	-22.7
Other comprehensive income	-	-	0.0	-	0.0
COMPREHENSIVE PROFIT/LOSS FOR
THE PERIOD	-	-	0.0	-22.7	-22.6
Share capital increases	-	10.3	-	-	10.3
Share based compensation	-	5.8	-	-	5.8
Total transactions with owners	-	16.1	-	-	16.1
Equity carried forward Sep 30, 2019		4.8 1,177.2	0.4	-318.4	863.9
Rounding differences may effect the summations.

Consolidated statement of cash flow

Consolidated statement of cash flow
SEK million	Note	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Rolling 12 months
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL
Operating profit		-40.8	-28.8	-12.8	-1.0	56.3
Adjustments for non-cash items:
Non-cash remuneration from share based payments (social charges)		6.7	-6.9	9.3	-4.9	-2.6
Non-cash remuneration from share based payments		5.4	0.4	5.8	1.5	6.0
Depreciation		26.1	12.3	79.3	34.8	93.5
Other items not included in cash flow		0.1	0.7	0.2	0.5	0.4
Interest paid		-2.8	-0.6	-7.8	-1.8	-8.4
Paid income tax		-0.2	-0.1	-0.4	-0.0	-0.4
CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL		-5.5	-23.0	73.6	29.1	144.7
CASH FLOW FROM CHANGES IN WORKING CAPITAL
Changes in inventory		-222.1	-227.0	-184.9	-335.7	-207.4
Changes in current assets		-34.5	-68.3	4.7	-30.6	-43.2
Changes in current liabilities		237.8	153.6	127.2	298.6	151.2
Cash flow from changes working capital		-18.8	-141.7	-53.0	-67.7	-99.4
CASH FLOW FROM OPERATING ACTIVITIES		-24.3	-164.7	20.6	-38.5	45.4
CASH FLOW FROM INVESTING ACTIVITIES
Investments in fixed assets
Change in financial assets	4 4	-64.4 0.2	-3.7 0.2	-86.5 -0.1	-15.5 -0.8	-132.8 -0.1
Investments in intangible assets	4	-8.8	-7.9	-26.8	-20.5	-35.6
CASH FLOW FROM INVESTING ACTIVITIES	4	-73.0	-11.5	-113.4	-36.8	-168.5
CASH FLOW FROM FINANCING ACTIVITIES
Share capital increases		10.3	24.7	10.3	35.1	10.3
New loans		63.0	-	70.0	-	121.6
Repayments of loans		-6.3	-4.8	-31.3	-24.6	-49.0
Change in lease liability		-9.3	-	-28.9	-	-28.9
CASH FLOW FROM FINANCING ACTIVITIES		57.8	19.9	20.2	10.6	54.1
Cash flow for the period		-39.5	-156.3	-72.6	-64.8	-69.0
Currency exchange gains/losses in cash and cash equivalents		0.2	-0.6	0.2	0.0	0.1
Cash and cash equivalents beginning of period		335.3	521.8	368.3	429.7	364.9
CASH AND CASH EQUIVALENTS END OF PERIOD		296.0	364.9	296.0	364.9	296.0

Note 1 - Accounting principles

The report is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. Information required by IAS 34 p.16 A is provided in notes and other sections in the interim report. The complete accounting principles will be disclosed in the annual report of 2019.

The accounting and measurement policies, as well as the assessment bases, applied in the 2018 Annual Report have also been applied in this quarterly report, with exception of what is described below

New or amended accounting standards that come into force in 2019 or later

IFRS 16 Leasing replaced IAS 17 as of January 1, 2019. Under the new standard, the majority of leased assets are reported in the balance sheet. The only exceptions are short-term and low-value leases. For the Group the implementation of IFRS 16 affected the financial statements as all leases in the Group are capitalized, i.e. an asset (the right to use the leased item) and a financial liability to pay rent are recognised. This have an effect on the total balance sheet and key ratios such as solidity. The contracts that have the greatest impact are leasing contracts relating to the premises for the fulfilment centre in Ängelholm (approximately 70% of the Group's lease liability), the headquarter in Hyllie and the physical retail stores. In addition, the Group has identified smaller lease agreements with cars, trucks and minor machines which also are accounted under IFRS 16. For the third quarter in 2019, the value of the Group's "right use of asset" is SEK 433.0 Million.

Important estimates and assessments

Effect on implementation of IFRS 16

expected to fulfil the terms and conditions that gives them a right to exercise the issued warrants is performed at each reporting date. The assessment is thereby a factor in the calculation of the liability (social charges) and IFRS 2 cost for share based payments to employees for the period.

In IFRS 15 the accrual for customer returns is based on 90% of the realised returns (approximately 20 days into the month after closing) and an estimate to the last 10% of the total accrual.

The depreciation period for the automated warehouse system AutoStore has been changed from January 1, 2019. The residual value as per January 1, 2019 will be linearly depreciated resulting in a total depreciation period of 10 years from the first day of capitalisation. Aluminium grid and boxes are depreciated over 10 years and the remaining components over 5 years. The operation of AutoStore until today has shown that the durability and service lif

of aluminium grid and boxes is very good and exceeds the original assessment of 5 years. For robots and other components, the depreciation period of 5 years is retained.

Parent Company

For the Parent Company Boozt AB (publ), the financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

The reporting currency is SEK and all figures in the interim report are rounded to the nearest million with one decimal point.

		report are rounded to the nearest million with one decimal
Important estimates and assessments		point.
For warrant program 2015/2025 and LTI 2019/2022, a
probability assessment of the proportion of warrant holders
Effect on implementation of IFRS 16
SEK million unless otherwise indicated	Opening balance Jan 1. 2019 and new lease agreements added since Jan 1	Change YTD	Closing balance Sep 30. 2019	Change Q3	Reference	Explanation to change
Right of use asset	468.8	-35.8	433.0	-12.0	A	Depreciations
Lease liabilities (non current & current)	468.8	-30.7	438.1	-11.1	B	Lease installments
Financial expense - Interests (IFRS 16)	-	-5.1	-5.1	-1.6	C	Financial expense
Distributed fixed lease payments*	-36.3	36.3	-	12.8	D	External costs
Total Q3 effect on Operating proft (EBIT) (A+D)		0.6		0.7	E
Total Q3 effect on Result for the period (A+C+D)		-4.5		-0.4	F
Total Q3 effect on Lease liabilities (-D-C)		-31.2		-11.7	G
Total Q3 effect on Right of use asset (A)		-35.8		-12.0	H
Reconciliation (F+G-H)		-
To calculate the Total effect on the Group's concolidated financial statement please use the reference letter. *Distributed fixed lease payments opening balance consist of leasing fees according to contract during Q3 2019.

	Q3 report – January 1 – September 30, 2019
Note 2 -	Segment reporting
SEK million	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Change	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Change	Rolling 12 months
NET REVENUE
Boozt.com	691.2	583.5	107.7	2,183.4	1,798.8	384.6	3,043.7
Booztlet.com	68.0	35.9	32.2	171.5	80.8	90.7	196.6
Other	5.0	5.6	-0.6	20.3	11.9	8.4	27.4
TOTAL NET REVENUE	764.1	625.0	139.2	2,375.2	1,891.5	483.6	3,267.7
EBIT
Boozt.com	-44.1	-25.6	-18.5	-13.6	2.4	-16.0	60.1
Booztlet.com	6.9	3.0	4.0	18.0	9.2	8.7	20.9
Other	-3.6	-6.1	2.5	-17.2	-12.7	-4.5	-24.7
TOTAL OPERATING PROFIT/LOSS	-40.8	-28.8	-12.0	-12.8	-1.0	-11.8	56.3
PROFIT/LOSS BEFORE TAX
Boozt.com	-46.6	-24.0	-22.6	-20.8	-3.7	-17.1	52.8
Booztlet.com	6.7	3.1	3.6	17.4	8.9	8.4	20.4
Other	-3.6	-6.1	2.5	-17.2	-12.7	-4.5	-24.7
		-43.5 -27.1	-16.5	-20.6	-7.4	-13.2	48.4

Note 2 - Segment reporting

The Group reports operating segments in accordance with IFRS 8. The Group's operations are divided into three segments, which constitute 100% of the revenue generated. The Group reports net revenue, EBIT and Operating profit before tax for each of the operating segments. No information on segment assets or liabilities is provided, as the two major segments share the assets and liabilities.

Note 3 - Financial instruments

	Q3 report – January 1 – September 30, 2019
Note 3 - Financial instruments
Sep 30, 2018	Accounts receivable and loans receivable	Other financial liabilitites	Financial assets measured at fair value via income statement	Total carrying amount	Fair value
Financial assets
Deposits	12.3	-	-	12.3	12.3
Accounts receivables	6.3	-	-	6.3	6.3
Other receivables	80.9	-	-	80.9	80.9
Cash and cash equivalents	364.9	-	-	364.9	364.9
Total financial assets	464.3	-	-	464.3	464.3
Financial liabilities
Liabilities to credit institutions	-	76.6	-	76.6	76.6
Accounts payables	-	565.7	-	565.7	565.7
Other liabilities	-	71.0	-	71.0	71.0
Derivatives	-	-	0.5	0.5	0.5
Total financial liabilities	-	713.4	0.5	713.9	713.9

	Accounts		Financial assets measured at fair
	receivable and	Other financial	value via income	Total carrying
Sep 30, 2019	loans receivable	liabilitites	statement	amount	Fair value
Financial assets
Deposits	12.4	-	-	12.4	12.4
Accounts receivables	4.8	-	-	4.8	4.8
Other receivables	96.1	-	-	96.1	96.1
Cash and cash equivalents	296.0	-	-	296.0	296.0
Total financial assets	409.3	-	-	409.3	409.3
Financial liabilities
Liabilities to credit institutions	-	149.2	-	149.2	149.2
Accounts payables	-	529.6	-	529.6	529.6
Lease liabilities	-	438.1	-	438.1	438.1
Other liabilities	-	96.7	-	96.7	96.7
Total financial liabilities	-	1,213.6	-	1,213.6	1,213.6
Rounding differences may affect the summations.

Calculation of fair value

Derivative instruments

For the current financial year, the fair value of financial assets and liabilities is considered to be close to the carrying amount,
after which the carrying amount is estimated to be the same as the fair value. For more detailed description of the Group's
classification and valuation of financial instruments please see the Group's Annual Report.
Derivative instruments
The fair value is calculated as defined for level 2 in IFRS 7. As per Q3 2019 the Group has no active derivative contracts.
SEK million unles otherwise stated	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Rolling 12 months
Interest income	-0.0	-0.0	-0.0	0.0	-0.0
Financial income - derivatives	-	2.3	-	3.8	0.5
Interest expense	-1.1	-0.6	-2.7	-1.8	-3.3
Interest expense IFRS 16	-1.7	-	-5.1	-	-5.1
Financial costs - derivatives	-	0.0	-	-8.5	-
NET FINANCIAL ITEMS	-2.8	1.7	-7.8	-6.4	-7.9

Note 4 - Investments

Note 4 - Investments Jul 1 - Sep 30, Jul 1 - Sep 30, Jan 1 - Sep 30, Jan 1 - Sep 30,
Rolling 12
SEK million 2019 2018 2019 2018 months
Acquisition of fixed assets (other capex) -0.8 -3.2 35.0 -14.0 -12.8
Acquisition of fixed assets (warehouse automation capex) -63.1 -0.3 -116.4 -1.0 -115.4
Acquisition of fixed assets (warehouse capex) -0.5 -0.2 -5.1 -0.5 -4.6
-64.4 -3.7 -86.5 -15.5 -132.8
Change in financial assets 0.2 0.2 -0.1 -0.8 -0.1
0.2 0.2 -0.1 -0.8 -0.1
Acquisition of intangible assets (capitalised development costs) -3.9 -3.9 -12.2 -9.8 -16.5
Acquisition of intangible assets (other) -4.9 -4.1 -14.6 -10.7 -19.1
-8.8 -7.9 -26.8 -20.5 -35.6
CASH FLOW FROM INVESTMENTS -73.0 -11.5 -113.4 -36.8 -168.5
Rounding differences may affect the summations.

The acquisition of fixed assets (warehouse automation capex) have increased with SEK 116.4 million in 2019. Whereof SEK 70 million are related to phase 3.1. The remaining phase 3.2 and 3.3 will expectedly be adopted in the Group's Q4 report 2019. The SEK 70 million is recognized as a provision for the asset as the Group has not by closing date Sep 30 received loan documents covering phase 3.1 through 3.3. The loan documents and physical handover of the entire phase 3 will expectedly take place in Q4 2019.

Parent company income statement

	Q3 report – January 1 – September 30, 2019
Parent company income statement
	Jul 1 - Sep 30,	Jul 1 - Sep 30,	Jan 1 - Sep 30,	Jan 1 - Sep 30,
SEK million	2019	2018	2019	2018
OPERATING INCOME
Net revenue	9.5	15.7	25.6	38.8
Total operating income	9.5	15.7	25.6	38.8
OPERATING COSTS
General expenses	-1.1	-1.0	-4.5	-4.7
Personnel costs	-14.6	-15.2	-34.9	-37.0
Total operating costs	-15.7	-16.3	-39.4	-41.6
OPERATING PROFIT	-6.2	-0.6	-13.8	-2.8
FNANCIAL INCOME AND EXPENSES
Financial income	-	-	-	-
Financial expenses	0.0	-	0.0	0.0
Net financial items	0.0	-	0.0	-
RESULT BEFORE TAX	-6.2	-0.6	-13.8	-2.8
Income tax	1.3	0.1	2.9	0.2
PROFIT/LOSS FOR THE PERIOD	-4.9	-0.5	-10.8	-2.6

Parent company financial position

SEK million	Sep 30, 2019	Sep 30, 2018	Dec 31, 2018
ASSETS
Non-current assets
Financial assets
Shares in Group companies	747.3	747.3	747.3
Deferred tax asset	16.6	13.6	13.7
Total non-current assets	763.8	760.9	760.9
Current assets
Short term receivables
Other receivables	0.0	-	-
Receivables from Group companies	50.6	40.5	53.4
Current tax assets	0.1	-	-
Prepaid expenses and accrued income	0.2	0.1	0.1
Cash and cash equivalents	8.2	14.4	3.8
Total current assets	59.1	55.0	57.2
TOTAL ASSETS	822.9	815.9	818.2
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	4.8	4.8	4.8
	4.8	4.8	4.8
Unrestricted equity
Share premium reserve	1,119.6	1,106.4	1,106.6
Retained earnings	-345.9	-343.1	-343.1
Net income for the period	-10.8	-2.7	-2.8
	762.8	760.7	760.6
Total equity	767.6	765.4	765.4
LIABILITIES
Non-current liabilities
Other provisions	8.2	-	2.4
Total non-current liabilities	8.2	-	2.4
Current liabilities
Accounts payable	0.3	0.2	0.3
Liabilities to Group companies	37.8	37.8	37.8
Other liabilities	1.8	3.7	2.6
Accrued expenses and prepaid income
Total current liabilities	7.3	8.9	9.7
TOTAL EQUITY AND LIABILITIES	47.1	50.5 815.9	50.3 818.2

Parent company changes in equity

	Q3 report – January 1 – September 30, 2019
Parent company changes in equity
SEK million	Share capital	Share premium reserve	Profit/loss brought forward	Total equity
Equity brought forward Jan 1, 2018	4.7	1,081.8	-343.1	743.4
Profit for the period	-	-	-2.7	-2.7
COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD	-	-	-2.7	-2.7
Share capital increases	0.1	24.6	-	24.7
Total transactions with owners	0.1	24.6	-	24.7
Equity carried forward Sep 30, 2018	4.8	1,106.4	-345.8	765.4

Rounding differences may affect the summations.
SEK million	Share capital	Share premium reserve	Profit/loss brought forward	Total equity
Equity brought forward Jan 1, 2019	4.8	1,106.6	-345.9	765.4
Profit for the period	-	-	-10.8	-10.8
COMPREHENSIVE PROFIT/LOSS FOR THE PERIOD	-	-	-10.8	-10.8
Share capital increases	-	10.3	-	10.3
Share based compensation	-	2.7	-	2.7
Total transactions with owners	-	13.1	-	13.1
		1,119.6	-356.8	767.6

Audit

This report has been the subject of a summary audit by the Group's auditors.

Signatures

The undersigned certify that this interim report gives a true and fair overview of the Parent Company's and the Group's operations, financial position, performance and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.

Malmö, November 14, 2019

Hermann Haraldsson Group CEO In accordance with authorisation given by the Board of Directors

Review Report

BOOZT AB (PUBL), CORP. ID: 556793-5183

Introduction

We have reviewed the interim report for Boozt AB (publ) for the period January 1 - September 30, 2019. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Malmö, November 14, 2019

Deloitte AB

Didrik Roos

Authorized Public Accountant

Additional information

Information by quarter

Net revenue and EBIT by segment

Net revenue and EBIT by segment
SEK million unless otherwise indicated	Q3 2019	Q2 2019	Q1 2019	Q4 2018	Q3 2018	Q2 2018	Q1 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	Q4 2016
NET REVENUE
Boozt.com	691.2	831.7	660.6	860.3	583.5	688.3	527.0	626.4	440.6	481.9	397.4	447.2
Booztlet.com		68.0 58.0	45.5	25.1	35.9	22.7	22.3	14.2	12.1	11.9	10.9	7.9
Other	5.0	9.0	6.3	7.1	5.6	3.7	2.6	3.5	2.3	2.3	12.9	12.2
NET REVENUE	764.1	898.7	712.4	892.5	625.0	714.7	551.9	644.2	454.9	496.1	421.1	467.3
OPERATING PROFIT/LOSS (EBIT)
Boozt.com	-44.1	50.1	-19.5	73.7	-25.6	36.6	-8.5	50.8	-13.4	-80.0	-29.0	45.7
Booztlet.com		6.9 7.4	3.6	2.9	3.0	2.4	3.8	1.2	2.2	-2.0	0.7	0.5
Other	-3.6	-8.6	-5.0	-7.5	-6.1	-4.9	-1.7	-0.9	-0.6	-0.9	2.2	-0.5
OPERATING PROFIT/LOSS (EBIT)	-40.8	48.9	-21.0	69.1	-28.8	34.1	-6.4	51.1	-11.8	-82.9	-26.1	45.8
OPERATING PROFIT/LOSS (EBIT) %
Boozt.com	-6.4%	6.0%	-3.0%	8.6%	-4.4%	5.3%	-1.6%	8.1%	-3.0%	-16.6%	-7.3%	10.2%
Booztlet.com	10.2%	12.8%	7.9%	11.6%	8.3%	10.6%	17.2%	8.3%	18.1%	-16.4%	6.1%	6.5%
Other	-72.8%	-95.2%	-80%	-105%	-109%	-131%	-66.3%	-25.1%	-25.9%	-41.0%	17.0%	-3.7%
OPERATING PROFIT/LOSS (EBIT) %	-5.3%	5.4%	-2.9%	7.7%	-4.6%	4.8%	-1.2%	7.9%	-2.6%	-16.7%	-6.2%	9.8%
EARNINGS BEFORE TAX
Boozt.com	-46.6	47.6	-21.8	73.6	-24.0	35.9	-15.5	51.6	-17.3	-78.1	-26.2	45.5
Booztlet.com		6.7 7.3	3.4	2.9	3.1	2.4	3.6	1.2	2.1	-1.9	0.7	0.5
Other	-3.6	-8.6	-5.0	-7.5	-6.1	-4.9	-1.7	-0.9	-0.6	-0.9	2.2	-0.5
EARNINGS BEFORE TAX	-43.5	46.3	-23.4	69.0	-27.1	33.4	-13.7	51.9	-15.9	-80.9	-23.3	45.5
ADJUSTED EBIT
Boozt.com	-32.0	43.8	-10.4	62.3	-22.1	37.4	-6.3	52.0	-14.0	12.0	-6.0	47.6
Booztlet.com		8.0 7.0	4.2	2.6	3.2	2.4	3.9	1.2	2.2	0.4	1.3	0.6
Other	-3.6	-3.7	-5.0	-7.5	-6.1	-4.9	-1.7	-0.9	-0.6	-1.6	2.2	0.1
ADJUSTED EBIT	-27.6	47.1	-11.3	57.4	-25.0	35.0	-4.1	52.3	-12.5	10.9	-2.5	48.3
ADJUSTED EBIT %
Boozt.com	-4.6%	5.3%	-1.6%	7.2%	-3.8%	5.4%	-1.2%	8.3%	-3.2%	2.5%	-1.5%	10.6%
Booztlet.com		11.8% 12.1%	9.1%	10.3%	8.9%	10.7%	17.6%	8.6%	18.0%	3.7%	11.6%	7.3%
Other	-72.8%	-40.8%	-80%	-105%	-109%	-131%	-66.3%	-25.1%	-25.9%	-70.7%	17.0%	0.6%
ADJUSTED EBIT %	-3.6%	5.2%	-1.6%	6.4%	-4.0%	4.9%	-0.7%	8.1%	-2.7%	2.2%	-0.6%	10.3%

Information by quarter

											Additional information
Information by quarter
SEK million unless otherwise indicated	Q3 2019	Q2 2019	Q1 2019	Q4 2018	Q3 2018	Q2 2018	Q1 2018	Q4 2017	Q3 2017	Q2 2017	Q1 2017	Q4 2016
EBIT MARGIN (%)
Gross margin (%)	35.6%	40.7%	37.9%	41.2%	36.6%	42.0%	39.1%	43.1%	38.8%	44.4%	44.4%	45.2%
Fulfillment cost ratio (%)	-14.4%	-13.7%	-14.8%	-13.7%	-14.6%	-13.4%	-13.5%	-12.7%	-14.8%	-15.5%	-20.5%	-14.1%
Marketing cost ratio (%)	-11.4%	-8.6%	-10.3%	-10.3%	-13.0%	-12.7%	-13.7%	-11.1%	-13.3%	-13.3%	-15.1%	-11.3%
Admin & other cost ratio (%)	-11.7%	-9.7%	-12.3%	-7.9%	-11.6%	-9.6%	-11.1%	-9.8%	-11.3%	-30.5%	-14.3%	-9.0%
Depreciation (%)	-3.4%	-3.2%	-3.4%	-1.6%	-2.0%	-1.6%	-2.0%	-1.5%	-2.0%	-1.8%	-0.7%	-1.0%
EBIT MARGIN (%)	-5.3%	5.4%	-2.9%	7.7%	-4.6%	4.8%	-1.2%	7.9%	-2.6%	-16.7%	-6.2%	9.8%
Adjusted fulfillment cost ratio (%)	-14.4%	-13.2%	-14.8%	-13.7%	-14.6%	-13.4%	-13.5%	-12.7%	-14.8%	-15.2%	-16.0%	-14.1%
Adjusted admin & other cost ratio (%)	-10.0%	-10.4%	-11.0%	-9.2%	-11.0%	-9.5%	-10.7%	-9.6%	-11.4%	-12.0%	-13.2%	-8.5%
Net working capital - percent of LTM net revenue	11.2%	11.2%	12.9%	11.3%	10.6%	5.3%	10.0%	9.9%	12.0%	5.1%	11.0%	6.8%
BOOZT.COM
Site visits (000)	32,594	32,438	31,029	31,575	26,044	26,560	24,959	26,966	20,747	21,056	19,737	18,798
No. of orders (000)	860	1,042	854	1,045	736	869	638	786	572	641	510	558
Conversion rate %	2.64%	3.21%	2.75%	3.31%	2.83%	3.27%	2.56%	2.91%	2.76%	3.05%	2.58%	2.97%
True frequency	8.0	7.7	7.8	6.8	7.8	7.2	7.2	6.3	6.6	6.1	5.9	5.2
Average order value (SEK)	801	801	774	827	794	801	824	810	780	765	788	822
Active customers (000)	1,557	1,512	1,460	1,363	1,242	1,185	1,104	1,057	967	916	862	820
No. of orders per active customer	2.44	2.43	2.40	2.41	2.44	2.42	2.39	2.37	2.36	2.30	2.23	2.15
BOOZTLET.COM
Site visits (000)	4,153	3,777	2,889	1,866	1,896	1,861	1,576
No. of orders (000)	105	96	71	43	53	37	33
Conversion rate %	2.53%	2.53%	2.44%	2.30%	2.79%	1.99%	2.08%
Average order value (SEK)	654	615	649	588	681	619	689
NET REVENUE - GEOGRAPHICAL SPLIT
Sweden	268.2	315.2	237.8	303.2	231.1	255.7	197.8	241.8	180.2	184.8	149.5	172.0
Denmark	237.5	317.8	237.2	338.1	212.5	260.3	180.9	239.0	148.5	176.8	130.6	162.1
Norway	116.2	130.3	110.3	125.3	90.0	110.3	92.4	86.2	69.0	78.0	68.5	58.8
Finland	82.7	67.2	61.4	63.3	55.9	52.9	49.7	42.9	36.8	37.6	36.3	36.5
Rest of Europe	59.6	68.3	65.6	62.6	35.5	35.5	31.1	34.2	20.4	18.9	36.2	37.8
TOTAL NET REVENUE	764.1	898.7	712.4	892.5	625.0	714.7	551.9	644.2	454.9	496.1	421.1	467.3

Definitions and rationale for the use of certain Alternative Performance Measures (APM)

Explanation	APM / IFRS	Definition	Rationale
Active customers	APM	Number of customers which made at least one order during the last 12 months.	The measure is to display, together with historical figures, how the number of active customers have developed in absolute figures.
Adjusted Admin & Other cost ratio	APM	Total operating costs less items affecting comparability, less share based compensations, less fulfilment costs, less marketing costs, less goods for resale less depreciation plus other operating income divided by net revenue.	The aim of the figure is to demonstrate the development of administation & other costs without the effect of one time events, as well as costs linked to the share price development of Boozt AB (publ).
Adjusted EBIT	APM	Profit/loss before interest, tax, share based payments related to employees and items affecting comparability.	The aim of the figure is to display the operating profit excluding non-recurring items and share based compensation related to employees and items affecting comparability are excluded from this metric.
Adjusted EBIT margin	APM	Adjusted EBIT divided by net revenue.	The aim of the figure is to display the Group's effectiveness in profit creation excluding impact from share price dependent costs.
Adjusted fulfilment cost ratio	APM	Fulfilment and distribution cost less items affecting comparability divided by net revenue.	The aim is to group the costs which is related to pick, pack, returnhandling, indeliveries and all distribution costs associated with shipping parcels to and from customers as well as business to business distribution costs less any cost items, which might affect the trend being one time by nature, and then evaluate these costs against net revenue created.
Adjusted net debt/net cash	APM	Interest bearing liabilities excluding interest bearing lease liabilities (IFRS 16) less cash and cash equivalents.	The aim is to display the cash and cash equivalent available after having theoretical settled all interest bearing liabilities be it current or non-current (excluding interest bearing lease liabilities).
Admin & Other cost ratio	APM	Total operating costs less fulfilment costs, less marketing costs, less goods for resale, less depreciation plus other operating income divided by net revenue.	The aim of the figure is to demonstrate the development of admin & other costs and then evaluate these costs against net revenue created.
Average order value	APM	Transactional net revenue divided by no. of orders.	The aim of the figure is to show the average consumer monetary value per basket excluding VAT, which again is very important to determine and understand the unit economics of each basket of the Group's operation.
BFC	APM Boozt Fulfilment Centre.		The location of the Group's warehouse.
Conversion rate	APM Total number of orders divided by total number of site visits.		The aim is to understand how traffic sent to the Group's websites are converting into monetary orders.
Depreciation cost ratio	APM	Depreciation and amortizations divided by net revenue.	The aim of the figure is to track the development of depreciation / amortization costs and then evaluate these costs against net revenue created.
Earnings per share	IFRS	Profit/loss for the period divided by weighted average number of shares outstanding during the period.	The aim is to distribute the company's profit to each share.
Earnings per share after dilution	IFRS	Profit/loss for the period divided by the diluted weighted average number of shares outstanding during the period. The number of ordinary shares shall be the weighted average number of shares, used when per share, plus the weighted average number of shares that would be issued measuring basic earnings on the conversion of all the dilutive potential shares into ordinary shares. Potential ordinary shares shall be treated as dilutive when, and only when, their conversion to ordinary shares would decrease earnings per share or increase loss per share.	The aim is to distribute the company's profit to each share including the net non registered shares (i.e. warrants or similar).

Explanation	APM / IFRS	Definition	Rationale
EBIT (Operating profit)	IFRS	Profit/loss before interest and tax.	The aim of this figure is to display the profit/loss before interests and tax
Equity / asset ratio	APM	Total equity divided by total assets.	To what degree are the Group's assets funded by capital ultimately owned by the Group's shareholders.
Fulfilment cost ratio	APM	Fulfilment and distribution cost divided by net revenue.	The aim is to group the costs which is related to pick, pack, returnhandling, indeliveries and all distribution costs associated with shipping parcels to and from customers as well as business to business distribution costs and then evaluate these costs against net revenue created.
Gross profit	APM	Net revenue decreased with cost of goods for resale.	The aim is to show the contribution left after cost of goods for resale, implying the amount of funds available for the remaining costs and profit.
Gross margin	APM	Gross profit (excluding other operating income) as a percentage of net revenue.	The aim is to analyse gross profit over time, expressed as percent of net revneue.
Growth in local currency	APM	Growth in local currency weighted with the local currency's share of net revenue in SEK in the reporting quarter.	To illustrate the growth adjusted for the impact of translating foreign currency to SEK.
Items affecting comparability	APM	Items that are not related with the operations and are the type of items that are not expected to re-occur often or regularly and that are items of significant value.	The aim is to isolate events, that cannot be characterised as normal operational costs or non-recurring.
Lease liabilities	IFRS	The Group's lease liabilities taking into consideration the Group's borrowing interest rate and lenght of lease agreements, options etc.	The Group's lease liabilities considered as a loan with amortizations and interest.
Marketing cost ratio	APM	Marketing cost divided by net revenue.	The aim is to group the costs which is related to production, media airtime, online exposures, analytics concerning monitoring of sales, CRM activities and then evaluate these costs against net revenue created.
Net working capital	APM	Current assets, excluding cash and cash equivalents, less non-interest bearing current liabilities.	The purpose of displaying net working capital is to display short-term financial health since the measure indicate if the company has enough short-term assets to cover its short term debt. Net working capital can be put in relation to net revenues to understand efficiency of net working capital tied up in operations.
Net debt / net cash	APM	Interest bearing liabilities less cash and cash equivalents.	The aim is to display the cash and cash equivalent available after having theoretical settled all interest bearing liabilities be it current or non-current.
Net revenue	IFRS	Transactional net revenue less fees paid to consignment partners plus other revenue.	This is the IFRS net revenue measurement taking into consideration that only the commission share of a transaction can be recognised as revenue, and even to include revenue which does not come from transactions with customers.
No. of orders	APM	Number of orders placed by customers during the period, irrespective of cancellations or returns	Number of orders is a parameter in measuring the average order value.
No. of orders per active customer (order frequency)	APM	Number of orders during the last 12 months divided by the total number of active customers end of period.	This number illustrates the frequency for an isolated cohort (active customers). It helps the reader in understanding to what extend the customers are coming back and the frequency at which they have shopped during the last 12 months, irrespective of whether they have been active from the start of the 12 months or are new customers who have been active in less than 12 months.
Right of use asset	IFRS	Present value of the Group's lease assets taking into consideration the Group's borrowing interest rate.	To clarify the Group's contingent assets which will have to be considered in combination with the Group's contingent lease liabilities.
Site visits	APM	Number of visits to a site or group of sites, irrespective of device used.	This number is relevant to understand the conversion rate.
Share based payments	APM Costs of the Group which are settled via issuing of shares.		The aim is to isolate all costs associated with share based payments be it IFRS 2 costs and taxes associated with share based payments. Since these costs to a large extend will fluctuate with the share price development or employee turnover, it can assist the reader in evaluating the Group's performance excluding these share based payment costs.

Explanation	APM / IFRS	Definition	Rationale
Transactional net revenue	APM	Gross sales (incl. shipping and invoice income) less discounts and returns, excl. VAT.	"The aim of the figure is to display the total consumer value of the orders processed less returns and excluding VAT. Transactional net revenue less fee to consignment partners plus other revenue not related to consumer orders equals net revenue. The transactional net revenue can be calculated as average order value (AOV) multiplied with no. of orders."
True frequency	APM	Order frequency for customers that have been with Boozt.com during last 12 months, hence not impacted by orders from new customers.	This figure isolates the co-hort which purchased with the Group 12 months ago, and then looks at this co-hort's behavior for the proceeding 12 months in terms of frequency (how many orders do they place on average). This will give the reader an understanding about the co horts frequency behavior once they mature.

Reconciliation of total operating income

Reconciliation of total operating income
	Jul 1 - Sep 30,	Jul 1 - Sep 30,	Jan 1 - Sep 30,	Jan 1 - Sep 30,	Rolling 12
SEK million unless otherwise indicated	2019	2018	2019	2018	months
GROUP
Transactional net revenue	762.5	626.5	2,377.9	1,899.7	3,274.6
Less consignment sales	-8.6	-11.0	-32.5	-35.6	-47.6
Other revenue	10.2	9.4	29.7	27.4	40.7
Net revenue	764.1	625.0	2,375.2	1,891.5	3,267.7
Other operating income	1.2	-	-	0.1	-
Total operating income	765.4	625.0	2,375.2	1,891.7	3,267.7
BOOZT.COM
Transactional net revenue	688.9	584.9	2,184.4	1,806.3	3,048.6
Less consignment sales	-7.9	-10.8	-30.7	-34.9	-45.6
Other revenue	10.2	9.4	29.7	27.4	40.7
Net revenue	691.2	583.5	2,183.4	1,798.8	3,043.7
Other operating income	1.2	-	-	0.1	-
Total operating income	692.4	583.5	2,183.4	1,798.9	3,043.7
BOOZTLET.COM
Transactional net revenue	68.7	36.0	173.3	81.5	198.6
Less consignment sales	-0.7	-0.2	-1.8	-0.7	-2.0
Other revenue	-	-	-	-	-
Net revenue	68.0	35.9	171.5	80.8	196.6
Other operating income	-	-	-	-	-
Total operating income	68.0	35.9	171.5	80.8	196.6
OTHER
Transactional net revenue	5.0	5.6	20.3	11.9	27.4
Less consignment sales	-	-	-	-	-
Other revenue	-	-	-	-	-
Net revenue	5.0	5.6	20.3	11.9	27.4
Other operating income	-	-	-	-	-
Total operating income	5.0	5.6	20.3	11.9	27.4

Reconciliation of adjusted EBIT

Reconciliation of adjusted EBIT
SEK million	Jul 1 - Sep 30, 2019	Jul 1 - Sep 30, 2018	Jan 1 - Sep 30, 2019	Jan 1 - Sep 30, 2018	Rolling 12 months
(EBIT)	-40.8	-28.8	-12.8	-1.0	56.3
Share based payments related to employees (social charges)	7.7	3.4	10.3	5.4	-1.7
Share-based payments related to employees	5.4	0.4	5.8	1.5	6.0
Non-recurring items affecting comparability	-	-	4.9	-	4.9
Adjusted EBIT	-27.6	-25.0	8.2	5.8	65.5
Rounding differences may affect the summations.
Non-recurring items affecting comparability are related to the closing of the Beauty by Boozt store in Roskilde.

Reconciliation with financial statements according to IFRS

Reconciliation with financial statements according to IFRS
	Jul 1 - Sep 30,	Jul 1 - Sep 30,	Jan 1 - Sep 30,	Jan 1 - Sep 30,	Rolling 12
SEK million unless otherwise indicated	2019	2018	2019	2018	months
Cash and cash equivalents	-296.0	-364.9	-296.0	-364.9	-296.0
Interest bearing liabilities (current and non-current)	149.2	76.6	149.2	76.6	149.2
Interest bearing lease liabilities	438.1	-	438.1	-	438.1
Net debt / -net cash	291.3	-288.3	291.3	-288.3	291.3
Total equity	863.9	817.8	863.9	817.8	863.9
Total assets	2,440.3	1,735.5	2,440.3	1,735.5	2,440.3
Equity / asset ratio	35.4%	47.1%	35.4%	47.1%	35.4%
No. of orders (000) (A)	860	736	2,755	2,244	3,800
Site visits (000) (B)	32,594	26,044	96,061	77,564	127,636
Boozt.com - Conversion rate (A) / (B)	2.64%	2.83%	2.87%	2.89%	2.98%
Transactional net revenue - Boozt.com (A)	688.9	584.9	2,184.4	1,806.3	3,048.6
No. of orders (000) (B)	860	736	2,755	2,244	3,800
Average order value (SEK) (A) / (B)	801.4	794.2	792.7	805.1	802.2
No. of orders (000) (LTM) (A)	3,800	3,029	3,800	3,029	3,800
Active customers (000) (B)	1,557	1,242	1,557	1,242	1,557
No. of orders per active customer (A) / (B)	2.44	2.44	2.44	2.44	2.44
Inventory	1,169.8	962.4	1,169.8	962.4	1,169.8
Accounts receivables	4.8	6.3	4.8	6.3	4.8
Other receivables	96.1	80.9	96.1	80.9	96.1
Current tax assets	0.9	0.5	0.9	0.5	0.9
Prepaid expenses and accrued income	69.9	42.4	69.9	42.4	69.9
Accounts payables	-529.6	-565.7	-529.6	-565.7	-529.6
Other liabilities	-96.7	-71.0	-96.7	-71.0	-96.7
Accrued expenses and prepaid income	-349.2	-187.5	-349.2	-187.5	-349.2
Net working capital	365.9	268.2	365.9	268.2	365.9
Net working capital - percent of LTM net revenue rolling 12 months	11.2%	10.6%	11.2%	10.6%	11.2%
Gross margin (%)	35.6%	36.6%	38.2%	39.4%	39.0%
Fulfilment cost ratio (%)	-14.4%	-14.6%	-14.3%	-13.8%	-14.1%
Marketing cost ratio (%)	-11.4%	-13.0%	-10.0%	-13.1%	-10.1%
Admin & other cost ratio (%)	-11.7%	-11.6%	-11.1%	-10.7%	-10.2%
Depreciation cost ratio (%)	-3.4%	-2.0%	-3.3%	-1.8%	-2.9%
EBIT margin (%)	-5.3%	-4.6%	-0.5%	-0.1%	1.7%

Some of the key ratios such as gross margin, earnings per share and EBIT margin may be easily calculated from the financial statements. Such metrics are regarded as reconciled and are not presented above. In addition the two metrics conversion rate and average order value for Booztlet.com can be easily calculated using the same methodology as for Boozt.com displayed above.

Financial calendar

February 21, 2020 Interim report January – December 2019, Q4 2019

April 6, 2020 Annual Report 2019

May 7, 2020 Annual General Meeting

May 14, 2020 Interim report January – March 2020, Q1 2020

August 21, 2020 Interim report January – June 2020, Q2 2020

November 18, 2020 Interim report January – September 2020, Q3 2020

Financial reports

Consolidated financial statements are available at www.booztfashion.com. Boozt AB (publ) is a public limited company. In case of enquiries or questions to the Group, please contact:

Anders Enevoldsen, Head of IR & Corporate Communication

anen@boozt.com / +45 53 50 14 53

or

Allan Junge-Jensen, Group CFO

ajj@boozt.com / +45 41 19 70 60

The interim report is such information as Boozt AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on November 14 2019.

This report may contain forward-looking information that is based on the present expectations of Boozt's management. No assurance may be given that these expectations will prove to be correct. Actual outcomes may deviate significantly from what is reflected in the forward-looking information due to changed conditions relating to the economy, market or competition, changes in legal requirements and other political measures, fluctuations in exchange rates and other factors outside of Boozt's control.

Adress: Hyllie Boulevard 35 215 37 Malmö, Sverige

Telefon: +46 40 12 80 05 E-mail: info@boozt.com www.booztfashion.com

Org. nr: 556793-5183 Malmö VAT nr SE556793518301