Björn Borg

Earnings Release • Aug 18, 2023

Björn Borg AB ¶ Interim report January«June 2023

Strengthened operating pro t and continued very strong growth in own e-commerce

• Group net sales amounted to SEK 165.6 million (161.5), an increase of 3 percent. Currency-neutral, net sales decreased by 2 percent.
• Net sales for own e-commerce and e-tailers amounted to SEK 76.5 million (52.0), an increase of 47 percent. Sales for own e-commerce increased by 39 percent to SEK 37.5 million (27.0).
• The gross proĥ t margin amounted to 55.6 percent (54.5). Currency-neutral, the gross proĥ t margin amounted to 56.7 percent, an increase of 2.2 percentage points.
• Operating proĥ t amounted to SEK 8.1 million (5.2), an increase of 55 percent. Currency-neutral, the operating proĥ t amounted to SEK 7.8 million, an increase of 50 percent.
• Proĥ t after tax amounted to SEK 4.2 million (0.3).

• Earnings per share before and after dilution amounted to SEK 0.17 (0.01).

• Group's net sales amounted to SEK 412.5 million (388.2), an increase of 6 percent. Currency-neutral, net sales increased by 2 percent.

• Net sales for own e-commerce and e-tailers amounted to SEK 169.3 million (145.5), an increase of 16 percent. Sales for own e-commerce increased by 36 percent to SEK 70.9 million (52.2).
• The gross proĥ t margin amounted to 53.6 percent (51.9). Currency-neutral, the gross proĥ t margin amounted to 55.3 percent, an increase of 3.4 percentage points.
• Operating proĥ t amounted to SEK 39.5 million (34.5), an increase of 14 percent. Currency-neutral, operating proĥ t amounted to SEK 41.5 million, an increase of 20 percent.
• Proĥ t after tax amounted to SEK 29.0 million (23.4), an increase of 24 percent.
• Earnings per share before and after dilution amounted to SEK 1.15 (0.93).

"Above all, it's our sports collection that makes me extremely proud, with an incredible development in our own e-commerce - not only during the second quarter of the year with an increase of 98 percent, but for the entire rst half of the year with an increase of 100 percent," comments CEO, Henrik Bunge.

SEK million	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jul 2022- Jun 2023	Full year 2022
Net sales	165.6	161.5	412.5	388.2	859.5	835,2
Gross proĥ t margin, %	55.6	54.5	53.6	51.9	51.7	50,8
Operating proĥ t	8.1	5.2	39.5	34.5	77.9	72,9
Operating margin, %	4.9	3.2	9.6	8.9	9.1	8,7
Proĥ t after tax	4.2	0.3	29.0	23.4	56.5	50,9
Earnings per share before dilution, SEK	0.17	0.01	1.15	0.93	2.24	2,02
Earnings per share after dilution, SEK	0.17	0.01	1.15	0.93	2.24	2,02

CEO comments

We started the year strongly, and that trend continued into the second quarter of the year when both sales and operating proĥ t increased. The fact that we managed to increase the operating proĥ t by 50 percent compared to the corresponding quarter last year was one of the many highlights of the quarter. Another was the continued strong growth for our own e-commerce, which grew by 39 percent.

Net sales during the quarter amounted to SEK 165.6 million (161.5), an increase of 3 percent compared to the previous year. Currency-neutral, our turnover decreased by 2 percent.

Our channels develop very diĤ erently in the quarter, where our wholesale channel grew by 7 percent despite high inventory levels at several customers. It is in particular our external e-tailers within the wholesale channel that develop very strongly with an increase of 57 percent. Both our own e-commerce and our own stores are developing very well, a sign of the strength of our brand, where our own e-commerce grew by 39 percent and our own comparable stores grew by 21 percent. In total, however, our own stores decline 2 percent in the quarter due to planned store closures. Our distributors decline signiĥ cantly compared to the previous year, which can be derived both from the timing of deliveries and large stocks with our distributors' customers.

When reviewing our various markets, we see a very strong recovery in Germany, which is growing by 39 percent. The Netherlands, Denmark and Finland are also developing well. At the same time, our sales in Sweden decrease slightly during the quarter, which is explained by challenges with our physical wholesale customers. Belgium also has a weak development in the quarter. There we see that several external e-tailers based mainly in Germany and the Netherlands focus on the Belgian market and successfully sell our products to Belgian consumers, which to some extent explains our strong decline of our Belgian wholesale customers.

Regarding our product areas, the sports apparel category continues to develop very well and increased by 14 percent, and bags grew by 3 percent. Both underwear and footwear decreased by 4 percent in the quarter. The decrease for underwear is solely a result of the timing of our distributor sales. Other categories grew by a total of 19 percent in the quarter. Above all, it is our sports collection that makes me extremely proud, with an incredible development in our own e-commerce, not only during the second quarter of the year with an increase of 98 percent, but for the entire ĥ rst half of the year with an increase of 100 percent.

The gross proĥ t margin increased to 55.6 percent (54.5). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 56.7 percent, an increase of 2.2 percentage points. A result of a continued focus on proĥ tability, and reduced discounts both at the wholesale level, in our own stores and our own e-commerce. In addition, the planned closures of our own stores had a positive impact on our operating proĥ t. Other planned costs were at the level of the previous year.

Increased sales with increased gross proĥ t margin meant that we increased our operating proĥ t by 55 percent to SEK 8.1 million from SEK 5.2 million.

With the second quarter behind us, I can conclude that our strong start to 2023 has continued, with growth, increased proĥ tability and a brand that is constantly being strengthened. I am humbled by all the challenges in the world around us, but strengthened in my conviction that for our team, all our employees, nothing is impossible. During the quarter, we see in our anonymous employee survey that we who work at Björn Borg feel very good, and when we feel good, we perform well. During the quarter we saw the evidence of this high performance; a sports collection that continued to develop very well, very strong growth for own e-commerce, an improvement in earnings and the continued strengthening of the brand. Recession or not, based on our second quarter performance, I can now state that we are one step closer to our dream to build a global sports fashion brand.

So, let's go!

Head coach, Henrik Bunge

The Group's development

The second quarter of the year showed an improvement in total operating revenue, including other revenue, of 1.7 percent to SEK 169.9 million (167.0). Adjusted for currency eĤ ects, the operating revenue decreased by 2.5 percent for the quarter.

The underwear product area showed reduced sales of 4 percent for the second quarter of 2023, where primarily sales to external distributors decreased by 47 percent due to the timing of distribution between the di Ĥ erent quarters. Other channels increased by a total of 4 percent. Sportswear increased by 14 percent, where sales to own e-commerce in particular continued to grow strongly, with an increase of 98 percent.

Sales for footwear decreased by 4 percent compared to the previous year's second quarter, while bags continued to grow with an increase of 3 percent. For other product areas, sales increased by 19 percent.

The largest market, Sweden, decreased during the second quarter of the year by 6 percent. Wholesale operations decreased by 13 percent while own e-commerce increased by 28 percent. The second largest market, the Netherlands, increased by 13 percent. Here too, own e-commerce grew strongly with an increase of 50 percent. Finland increased by 12 percent and Germany increased by 39 percent due to strong development of the German

e-tailers. Denmark showed growth of 38 percent, while Belgium decreased by 7 percent. Other smaller markets decreased by a total of 19 percent.

The largest channel, the wholesale business, showed an increase of 7 percent in the second quarter of 2023, where e-tailers in the wholesale business increased by 57 percent, mainly due to the aforementioned development in the German market, while physical stores decreased by 14 percent. Own stores decreased by 2 percent compared to the previous year. Own e-commerce continued to show strong growth and increased by 39 percent. Distributors decreased by 51 percent compared to the previous year, mainly due to the timing of the distribution.

Group net sales during the second quarter amounted to SEK 165.6 million (161.5), an increase of 2.5 percent. The currency eĤ ect on sales was positive in the quarter, and adjusted for currency eĤ ects, net sales decreased by 1.9 percent.

The main explanation for the variance between the quarters was that the company experienced increased demand within its own e-commerce, which grew by 39 percent, while external distributors showed the opposite eĤ ect and decreased by 51 percent due to timing in distribution. For further details, see below under "Development by segment".

Group net sales during the ĥ rst half of the year amounted to SEK 412.5 million (388.2), an increase of 6.3 percent. The currency eĤ ect on sales was positive and, adjusted for currency eĤ ects, turnover increased by 2.3 percent.

The main explanation for the increase during the ĥ rst half of the year was that the company saw increased demand within the Consumer Direct segment, where sales in its own physical stores increased by 5 percent and its own e-commerce increased by 36 percent. For further details, see below under "Development by segment".

The gross proĥ t margin for the second quarter increased to 55.6 percent (54.5). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 56.7 percent. It was, above all, a generally greater focus on proĥ tability in its wholesale operations, and reduced discounts in own stores and in own e-commerce, that contributed to the positive eĤ ect.

Other operating income amounted to SEK 4.2 million (5.4) and mainly refers to unrealized gains on accounts receivable in foreign currency.

Operating costs in the quarter were at the same level compared to the previous year's second quarter.

Increased sales, higher gross proĥ t margins as well as planned operating costs meant that the operating proĥ t increased to SEK 8.1 million (5.2).

Net ĥ nancial items amounted to –2.7 MSEK (–0.9). The deterioration of net ĥ nancial items compared to the previous year was mainly attributable to the revaluation of ĥ nancial assets and liabilities in foreign currency.

The period's proĥ t after tax increased to SEK 4.2 million (0.3).

The gross proĥ t margin for the ĥ rst half of the year increased to 53.6 percent (51.9). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 55.3 percent. It was, above all, a generally greater focus on proĥ tability in wholesale operations, and reduced discounts in own stores and in own e-commerce, that contributed to the positive eĤ ect.

Other operating income amounted to SEK 7.6 million (15.4) and mainly refers to unrealized gains on accounts receivables in foreign currency.

Operating costs increased as planned for the ĥ rst half of the year by SEK 6.9 million compared to the previous year's ĥ rst half-year, primarily through increased marketing activities. However, lower personnel costs had the opposite positive eĤ ect on operating costs.

Increased sales, higher gross proĥ t margins as well as planned increased operating costs compared to the previous year, resulted in the operating proĥ t increasing to SEK 39.5 million (34.5).

Net ĥ nancial items amounted to SEK –3.4 million (–1.0). The deterioration of net ĥ nancial items compared to the previous year was mainly attributable to the revaluation of ĥ nancial assets and liabilities in foreign currency.

The period's proĥ t after tax increased to SEK 29.0 million (23.4).

Björn Borg's segment reporting consists of the company's main revenue streams, which are divided into Wholesale, Own e-commerce, Own stores, Distributors and Licensing, which is also how the business is monitored internally in the Group.

The segment's external operating income amounted to SEK 272.9 million (262.8), which was an increase of 4 percent. One explanation for the increase was that the company experienced increased demand from e-tailers within the segment, players who primarily sell online, where growth for the ĥ rst half of the year was 5 percent, up to SEK 99 million (95). Physical stores within the segment also showed growth and increased by 3 percent, amounting to SEK 174 million (168). Within wholesale operations, Sweden, the largest market, showed a decrease of 3 percent while the second largest market, the Netherlands, showed corresponding growth of 3 percent. The Finnish market increased by 13 percent, while Germany decreased by 2 percent.

Operating proĥ t amounted to SEK 26.1 million (31.7), a decrease of 17 percent. The deterioration in operating proĥ t was primarily due to higher operating costs compared to the previous year, in the form of higher reserves for possible customer losses.

Own e-commerce continued to grow strongly. During the ĥ rst half of the year, own e-commerce increased by 36 percent to SEK 70.9 million (52.2). The increase was mainly due to strong growth in the sports apparel product area, which was up 100 percent compared to the previous year's ĥ rst half-year. The underwear product area also increased strongly and grew by 16 percent. Bags continued to show strong momentum and grew by 56 percent.

The operating proĥ t for the ĥ rst half of 2023 amounted to SEK 11.2 million (6.8), an increase of 65 percent. The improvement came primarily from signiĥ cantly increased sales combined with unchanged high gross margins.

Our own physical stores developed strongly compared to the ĥ rst half of last year. In total, the increase was 5 percent despite the company choosing to close ĥ ve stores in accordance with the company's strategy to close unproĥ table stores. This was oĤ set by the fact that the stores in the Netherlands were closed for parts of the ĥ rst half of last year because of the pandemic. For comparable stores, i.e., stores that were also open in the corresponding period of the previous year, the increase was 27 percent.

In the Netherlands, sales in own stores increased by 20 percent, mainly because the stores were closed for part of the ĥ rst half of 2022. In Sweden, sales in own stores increased by 5 percent in connection with the increased traħ c to the stores, and also the fact that the average receipt was higher than in previous years. Sales in Finland and Belgium were down by 9 and 13 percent respectively as a result of the fewer number of stores this year compared to last year's ĥ rst quarter. For comparable stores, Finland and Belgium increased by 53 and 8 percent respectively.

The operating proĥ t for the ĥ rst half of 2023 amounted to –6.9 MSEK (–15.6). The improvement in operating proĥ t was mainly explained by the increased sales and signiĥ cantly improved gross proĥ t margins, as well as reduced operating costs resulting from fewer stores.

The segment's external operating income decreased during the ĥ rst half of the year 2023 compared to 2022, and amounted to SEK 23.1 million (38.8). Sales to the two major distributor markets, Norway and Great Britain, decreased compared to the previous year by 30 and 56 percent respectively, mainly due to the timing of the distribution. For the other distributor markets, sales decreased by a total of 46 percent.

Operating proĥ t decreased to SEK 2.9 million (7.1) as a result of the lower sales.

		Operating income, SEK thousands January-June		Operating proĥ t, SEK thousands January-June		Operating margin,% January-June
Segment	Revenue type	2023	2022	2023	2022	2023	2022
Wholesale	Products	272,919	262,786	26,114	31,650	10	12
Own e-commerce	Products	70,890	52,156	11,162	6,759	16
Own stores	Products	46,252	44,150	–6,852	–15,586	–15	–35
Distributors	Products	23,058	38,786	2,947	7,096	13	18
Licensing	Royalties	6,971	5,654	6,116	4,624	88	82

The segment's external operating income increased slightly during the ĥ rst half of the year 2023 compared to 2022, and amounted to SEK 7.0 million (5.7). It was, above all, within the footwear category that royalty income increased during the ĥ rst half of the year.

The operating proĥ t amounted to SEK 6.1 million (4.6) for the ĥ rst half of 2023.

Intra-Group sales for the ĥ rst half of 2023 amounted to SEK 274.2 million (225.8).

The Björn Borg Group operates in an industry with seasonal variations. The diĤ erent quarters vary in terms of sales and proĥ ts. See diagram on 'Quarterly net sales and operating proĥ t' on page 5.

The cash Ħ ow from the ongoing operations in the Group during the ĥ rst half of 2023 amounted to SEK 50.5 million (53.1).

Cash Ħ ow from investment activities was negative at SEK –5.4 million (–4.6). The larger investments related to the remodeling of the head oħ ce's showroom. Cash Ħ ow from ĥ nancing activities amounted to SEK –54.0 million (–134.7). The improvement compared to the previous year was due to the net eĤ ect of increased utilization rate of bank facilities, lower loan repayments, and lower distribution to shareholders –50.3 MSEK (–62.9).

The Björn Borg Group's cash and cash equivalents at the end of the period amounted to SEK 10.1 million (14.4), plus unused bank facilities of SEK 114.1 million (131.2). At the end of the second quarter of the year, the company had a net debt, excluding lease liabilities, of SEK 25.8 million (4.4). The company continued to have strong liquidity due mainly to increased earnings and reduced long-term debt. Total interest-bearing liabilities amounted to SEK 82.3 million (65.3), where the total leasing debt amounted to SEK 46.4 million (46.5), of which SEK 27.1 million was the long-term share and SEK 19.3 million was the short-term share.

The Björn Borg Group has SEK 150 million in bank facilities, of which SEK 35.9 million was utilized as of June 30, 2023. The fair value of ĥ nancial instruments corresponded in all material respects to the book value.

As a commitment to the overdraft facility, the company has undertaken to ensure that the ratio of the Group's net debt and 12-month rolling operating proĥ t before depreciation, as of the last day of each quarter, does not exceed 3.00. Furthermore, the Group must at all times maintain an equity ratio of at least 35 percent.

As of June 30, 2023, the ratio was 0.29 (0.04) and the equity ratio amounted to 53.5 percent (53.3).

There have been no signiĥ cant changes in collateral and contingent liabilities compared to 31 December 2022.

The average number of employees in the Group for the twelve-month period ending June 30, 2023, was 151 (157), of which 68 percent (66) were women. The reduction in personnel compared to the previous year was due to store closures.

Following a decision at the annual general meeting, the Björn Borg Group has introduced an incentive program under which the company oĤ ers persons in group management and certain additional key persons within the Group, the opportunity to acquire warrants in the company at market value. The incentive program involves the issue of a total of 300,000 warrants, where each warrant entitles the holder to subscribe for one new share in the company. A total of 290,000 warrants were subscribed, remaining 10,000 warrents are kept for future key persons. For further information on the incentive program and its design, please refer to the company's website and the documentation regarding the 2023 annual general meeting.

In addition to the customary remuneration (salary, fees and other beneĥ ts) to the CEO, senior executives and the Board of Directors, as well as Intro-Group sales, no transactions with related parties were carried out during the period.

Through its operations, the Björn Borg Group is exposed to risks and uncertainties. Information about the Group's risks and uncertainties is given on page 61 of the Annual Report for 2022.

The company notes, however, that Russia's war against Ukraine continues. It is currently diħ cult to determine how the war will aĤ ect the Björn Borg Group's operations ĥ nancially. The fact that the company does not do business in either Russia or Ukraine will minimize any risk of business impact, although declining consumer conĥ dence in the future may have an indirect, negative eĤ ect.

Furthermore, the company notes that inĦ ation in the markets in which the Björn Borg Group operates continues to be at high levels, that interest rates on bank loans have risen sharply, and that the currencies in which the company trades have had an unfavorable development. Taken together, these macro-economic eĤ ects could have a further impact on consumer purchasing behavior.

Björn Borg AB (publ) mainly conducts Intra-Group operations. As of June 30, 2023, the company owned 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc, Björn Borg Services AB, Björn Borg Ltd, Baseline BV, Belgian Brand Management BVBA, Björn Borg Finland Oy and Björn Borg Denmark ApS. Furthermore, the company owned 75 percent of the shares in Bjorn Borg (China) Ltd.

The parent company's net sales for the ĥ rst half of 2023 amounted to SEK 50.5 million (50.3).

Proĥ t before tax amounted to –7.6 MSEK (–5.1) for the ĥ rst half of 2023. Cash and cash equivalents at the end of the period amounted to 0 MSEK (0).

There have been no signiĥ cant events to report since the end of the reporting period.

The number of shares in Björn Borg amounts to 25,148,384 shares.

Björn Borg's long-term ĥ nancial goals for the business, which were most recently established in 2019 for a ĥ ve-year period until 2023, are:

• Annual sales growth of at least 5 percent.
• An annual operating margin of at least 10 percent.
• An annual dividend of at least 50 percent of net proĥ t after tax.
• An equity/assets ratio of not less than 35 percent.

The company retains the above goals despite the ongoing unrest in the outside world.

Comments on the ĥ nancial targets: The growth in sales is expected to come mainly from growth in sports apparel, although other product groups are also expected to grow.

The annual general meeting held on 17 May 2023 decided on a distribution of 2.00 (2.50) per share to the shareholders for the ĥ nancial year 2022. Fredrik Lövstedt, Mats H Nilsson, Heiner Olbrich, Alessandra Cama, Anette Klintfeldt, Jens Høgsted and Johanna Schottenius were re-elected to the Board. The total number of members is seven. The meeting decided that Heiner Olbrich should be re-elected as the Board's Chair.

The meeting also adopted the Board's proposal for a long-term incentive program including the issuance of warrants. For further information on the incentive program, see above under "Transactions with related parties".

This interim report in summary for the Group has been prepared in accordance with IAS 34 and applicable regulations in the . The interim report for the parent company has been prepared in accordance with 9 chapters, and RFR 2 . The accounting principles applied in the interim report are consistent with the accounting principles that were applied when preparing the Group and Annual Report for 2022 (see page 56 of the Annual Report for 2022). New and amended standards and new interpretations that apply from 1 January 2023 have not had any signiĥ cant impact on the Group's ĥ nancial reports. Changes in RFR 2 that apply from 1 January 2023 have not had any signiĥ cant impact on the parent company's ĥ nancial reports.

When preparing an interim report, management is required to make judgments and assessments regarding the assumptions that aĤ ect the application of the Group's (and the parent company's) accounting principles, as well as the reported amounts for assets, liabilities, income, and expenses. The eĤ ects of the negative ĥ nancial impact of the Corona virus have been taken into account, as have any possible negative ĥ nancial eĤ ects relating to the war in Ukraine. The outcomes of these judgements and assessments have not had any signiĥ cant impact on the Group's ĥ nancial reports. Important judgments and assessments appear in the Annual Report for 2022. No other signiĥ cantly changed assessments or judgments have taken place compared to the Annual Report for 2022.

This interim report has not been the subject of a general review by the company's auditors.

The company's policy is not to provide forecasts.

Consolidated income statement

Note SEK thousands	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jul 2022- Jun 2023	Full year 2022
Net sales	1 165,631	161,544	412,523	388,164	859,532	835,173
Other operating revenue	4,239	5,419	7,568	15,368	18,035	25,835
Goods for resale	–73,576	–73,575	–191,536	–186,809	–415,387	–410,660
Other external expenses	2 –41,218	–37,204	–96,237	–78,028	–199,620	–181,411
Personnel costs	–33,952	–37,878	–67,910	–72,836	–136,521	–141,447
Depreciation/amortization of tangible/
intangible non-current assets	–8,182	–8,835	–16,805	–17,600	–33,944	–34,739
Other operating expenses	–4,842	–4,238	–8,117	–13,716	–14,243	–19,842
Net ĥ nancial items	–2,699	–889	–3,420	–1,032	–4,852	–2,465
Tax	–1,212	–4,082	–7,092	–10,117	–16,545	–19,571
Parent Company shareholders	4,189	262	28,974	23,394	56,455	50,873
Non-controlling interests	–	–	–	–	–	–
Earnings per share before dilution, SEK	0.17	0.01	1.15	0.93	2.24	2.02
Earnings per share after dilution, SEK	0.17	0.01	1.15	0.93	2.24	2.02
Number of shares	25,148,384	25,148,384	25,148,384	25,148,384	25,148,384	25,148,384

Consolidated statement of comprehensive income

SEK thousands	Note	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jul 2022- Jun 2023	Full year 2022
Translation diĤ erence for the period		5,591	1,495	7,297	1,678	8,392	2,590
Parent Company shareholders Non-controlling interests		9,780 –	1,757 –	36,271 –	25,072 –	64,847 –	53,463 –

Consolidated statement of nancial position

Note SEK thousands	Jun 30, 2023	Jun 30, 2022	Dec 31, 2022
	37,813	35,591	36,486
Goodwill	187,532	187,532	187,532
Trademarks	7,003	9,408	7,561
Other intangible assets
Tangible non-current assets	18,250	16,726	16,195
Deferred tax assets	13,139	11,707	12,575
Right-of-use assets	46,537	46,201	52,571
Inventory	182,399	167,561	201,136
Accounts receivable	101,276	87,686	104,212
Other current receivables	24,506	24,812	19,094
Cash and cash equivalents	10,115	14,365	16,032
Equity	311,686	296,417	324,809
Deferred tax liabilities	39,747	39,593	39,877
Other non-current liabilities	–	7,851	–
Long-term lease liabilities	27,064	28,694	32,386
Current liability to credit institution	35,897	18,793	30,000
Accounts payable	127,828	117,529	106,021
Short-term lease liabilities	19,315	17,800	19,265
Other current liabilities	67,033	74,913	101,036

Consolidated statement of changes in equity

SEK thousands	Note	Equity attributable to the parent company's shareholders	Possession without controlling inĦ uence	Total equity
Total comprehensive income for the period		25,713	–641	25,072
Distribution for 2021		–62,871	–	–62,871
Total comprehensive income for the period		54,198	–735	53,463
Distribution for 2021		–62,871	–	–62,871
Total comprehensive income for the period		36,424	–153	36,271
Distribution for 2022		–50,297	–	–50,297
Warrant premium		903	–	903

Consolidated statement of cash ows

SEK thousands	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Full year 2022
Before changes in working capital	12,091	17,104	31,179	55,339	108,024
Changes in working capital	65,495	93,128	19,342	–2,218	–47,524
Investments in intangible non-current assets	–679	–	–679	–311	–265
Investments in tangible non-current assets	–1,983	–2,483	–4,672	–4,263	–8,059
Distribution	–50,297	–62,871	–50,297	–62,871	–62,871
Warrant premium	903	–	903	–
Amortization of loans	–	–49,000	–30,000	–80,000	–80,000
Amortization of lease liabilities	–4,851	–5,183	–10,458	–10,578	–23,068
Newly-raised loans	–	–	–	–	30,000
Overdraft facility	–22,401	8,166	35,897	18,793	–
Cash and cash equivalents at the beginning of the period	10,244	13,499	16,032	96,743	96,743
Translation diĤ erence in cash and cash equivalents	1,593	2,005	2,868	3,731	3,052

Key gures

SEK thousands	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jul 2022- Jun 2023	Full year 2022
Gross proĥ t margin,% *	55.6	54.5	53.6	51.9	51.7	50.8
Operating margin,%	4.9	3.2	9.6	8.9	9.1	8.7
Proĥ t margin,%	3.3	2.7	8.7	8.6	8.5	8.,4
Return on capital employed,%	20.8	24.8	20.8	24.8	20.8	17.1
Return on average equity,%	18.6	25.7	18.6	25.7	18.6	15.4
Proĥ t attributable to the Parent Company's
shareholders	4,189	262	28,974	23,394	56,455	50,873
Equity/assets ratio,% *	53.5	53.3	53.5	53.3	53.5	54.0
Equity per share, SEK	12.39	11.79	12.39	11.79	12.39	12.92
Investments in intangible non-current assets	679	–	679	311	679	265
Investments tangible non-current assets	1,983	2,483	4,672	4,263	8,422	8,059
Depreciation, amortization and impairment
losses for the period	–8,182	–8,835	–16,805	–17,600	–33,944	–34,739
Average number of employees	150	157	151	157	151	151

* The ĥ gure is an alternative performance measure (APM) and not (IFRS). It is described under deĥ nitions and explained on page 15.

Summary per segment

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul 2022-	Full year
SEK thousands	2023	2022	2023	2022	Jun 2023	2022
External revenue	90,748	85,075	272,919	262,786	550,007	539,871
Internal revenue	16,702	876	18,598	1,891	21,578	4,870
External revenue	37,487	27,021	70,890	52,156	132,146	113,411
Internal revenue	9	291	1,148	291	1,106	250
External revenue	25,378	25,877	46,252	44,150	108,667	106,566
Internal revenue	–	–229	–	–	128	128
External revenue	13,692	27,738	23,058	38,786	76,569	92,298
Internal revenue	83,863	72,512	239,643	189,434	529,984	479,774
External revenue	2,565	1,253	6,971	5,654	10,178	8,862
Internal revenue	4,617	13,709	14,820	34,215	13,891	33,286
Less internal sales	–105,191	–87,160	–274,208	–225,831	–566,687	–518,309
Wholesale business	980	–880	26,114	31,650	47,288	52,824
Own e-commerce	4,244	4,131	11,162	6,759	22,072	17,669
Own stores	–1,037	–4,258	–6,852	–15,586	–15,590	–24,324
Distributors	1,681	5,397	2,947	7,096	15,409	19,558
Licensing	2,232	843	6,115	4,624	8,673	7,182

The diĤ erence between operating proĥ t for segments for which information must be provided SEK 8,100 thousand (5,233) and proĥ t before tax SEK 5,401 thousand (4,344) are ĥ nancial net items, SEK –2,699 thousand (–889).

Quarterly data

GROUP
-------	--

SEK thousands	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021
Net sales	165,631	246,893	198,420	248,590	161,544	226,620	180,576	240,141
Gross proĥ t margin,%	55.6	52.2	52.1	48.2	54.5	50.0	53.1	54.4
Operating proĥ t/loss	8,100	31,385	7,770	30,597	5,233	29,309	10,020	52,357
Operating margin,%	4.9	12.7	3.9	12.3	3.2	12.9	5.5	21.8
Proĥ t/loss after net ĥ nancial items	5,401	30,665	6,389	30,545	4,344	29,166	12,030	50,937
Proĥ t margin,%	3.3	12.4	3.2	12.3	2.7	12.9	6.7	21.2
Earnings per share,
before dilution, SEK	0.17	0.99	0.21	0.88	0.01	0.92	0.44	1.59
Earnings per share, after dilution, SEK	0.17	0.99	0.21	0.88	0.01	0.92	0.44	1.59
Number of Björn Borg retail stores
at the end of the period	17	19	19	19	24	26	26	27
of which Group-owned
Björn Borg retail stores	16	18	18	18	21	23	23	24

Parent company income statement

SEK thousands	Note	Apr-Jun 2023	Apr-Jun 2022	Jan-Jun 2023	Jan-Jun 2022	Jul 2022- Jun 2023	Full year 2022
Net sales		25,426	25,168	50,528	50,338	101,395	101,205
Other operating revenue		421	445	569	1,010	733	1,174
Goods for resale		–	–153	–	–153	–	–153
Other external expenses	2	–12,322	–13,353	–28,764	–26,481	–58,540	–56,256
Personnel costs		–10,779	–14,528	–21,342	–26,505	–46,343	–51,506
Depreciation/amortization of intangible
and tangible non-current assets		–739	–611	–1,382	–1,240	–2,628	–2,486
Other operating expenses		–91	–162	–140	–663	–345	–869
Result from shares in subsidiaries		–	–	–	–	4,493	4,493
Net ĥ nancial items		–4,357	–3,396	–7,099	–1,435	–11,614	–5,950
Group contributions received/paid		–	–	–	–	52,538	52,538
Appropriations		–	–	–	–	–360	–360
Tax		–	–	–	–	–9,512	–9,512
Other comprehensive income		–	–	–	–	–	–

Parent company balance sheet

Note SEK thousands	Jun 30, 2023	Jun 30, 2022	Dec 31, 2022
Intangible assets	1,499	3,146	2,323
Tangible non-current assets	4,595	2,149	2,510
Deferred tax	–	4	–
Shares in Group companies	371,813	279,956	371,813
Receivables from Group companies	435,372	1,031,101	891,508
Current receivables	6,079	5,473	3,669
Cash and cash equivalents	–	–	1,558
Equity	79,215	88,029	136,239
Untaxed reserves	1,616	1,256	1,616
Other non-current liabilities	–	7,851	–
Current liabilities credit institutions	35,897	18,793	30,000
Due to Group companies	681,401	1,175,929	1,049,151
Accounts payable	9,449	6,346	9,782
Other current liabilities	11,780	23,625	46,593

Parent company statement of changes in equity

SEK thousands	Jan-Jun 2023	Jan-Jun 2022	Full year 2022
Distribution	–50,297	–62,871	–62,871
Warrant premium	903	–	–
Total comprehensive income for the period	–7,630	–5,129	32,318

Supplementary disclosures

The Group's net sales consist of sales of products and royalties for the use of the company's brand. Transfers of goods/royalties are made at ĥ xed points in time. Listed in the table below are markets with a net sales above 10 percent of the total.

	The group
	Jan-Jun	Jan-Jun
SEK thousands	2023	2022
Sweden	136,621	136,856
Netherlands	98,688	83,710
Finland	56,115	49,791
Germany	42,769	44,272
Others	78,330	73,535

	The group		Parent Company
	Jan-Jun	Jan-Jun	Jan-Jun	Jan-Jun
SEK thousands	2023	2022	2023	2022
Cost of premises	5,02	5,971	3,344	3,489
Sales expenses	31,196	27,372	622	2,364
Marketing expenses	35,958	30,016	17,084	13,058
Administrative
expenses	20 ,168	12,042	7,186	7,188
Other	3,613	2,627	528	382

De nitions

The company presents certain ĥ nancial measures in this year-end report that are not deĥ ned in accordance with IFRS. The company considers these measures to be valuable complementary information for investors and the company's management. Since not all companies calculate ĥ nancial measures in the same way, they are not always comparable with measures used by other companies. Consequently, these ĥ nancial measures should not be seen as a substitute for measures deĥ ned in accordance with IFRS. For more on the calculation of these key ĥ gures see:

https://corporate.bjornborg.com/en/section/investors/ interim-reports/

https://corporate.bjornborg.com/en/ĥ nancial-deĥ nitions/ https://corporate.bjornborg.com/en/ĥ nancial-data/

Total assets less non-interest-bearing liabilities and provisions.

Capital employed measures capital use and eħ ciency.

Sales for own retail stores that were also open in the previous period.

To obtain comparable sales between periods for own retail stores.

Proĥ t after tax in relation to the weighted average number of shares during the period. This indicator is used to assess an investment from an owner's perspective.

Earnings per share adjusted for any dilution eĤ ect. This indicator is used to assess the investment from an owner's perspective.

Equity as a percentage of total assets adjusted for lease liabilities.

This indicator shows ĥ nancial risk, expressed as a share of the total restricted equity ĥ nanced by the owners.

Net sales less costs of goods sold divided by net sales. Gross margin is used to measure operating proĥ tability.

Net sales less cost of goods sold divided by net sales. Gross proĥ t margin before acquisitions is used to measure operating proĥ tability adjusted for acquisition eĤ ects.

Gross proĥ t margin calculated using the previous year's exchange rate.

To obtain a currency-neutral gross proĥ t margin.

Net sales calculated using the previous year's exchange rate.

To obtain comparable and currency-neutral net sales.

Interest-bearing liabilities excluding leasing liabilities less investments and cash and cash equivalents. Net debt reĦ ects the company's total debt situation.

Interest-bearing liabilities excluding lease liabilities less investments and cash and cash equivalents divided by operating proĥ t before depreciation/amortizartion. To show the company's ability to pay debts.

Financial income less ĥ nancial expenses. To describe the company's ĥ nancial activities.

Operating proĥ t as a percentage of net sales. The operating margin is used to measure operating proĥ tability.

Proĥ t before tax plus net ĥ nancial items. : This indicator facilitates comparisons of proĥ tability regardless of the company's tax rate and independent of the company's ĥ nancing structure.

Proĥ t before tax as a percentage of net sales. Proĥ t margin shows the company's proĥ t in relation to its sales.

Proĥ t before tax (per rolling 12-month period) plus ĥ nancial expenses as a percentage of average capital employed. Average capital employed is calculated by adding equity at January 1 to equity at December 31 and dividing by two. This indicator is the key measure to quantify the return on all the capital used in operations.

Proĥ t for the period/year attributable to the Parent Company's shareholders (for rolling 12 months) according to the income statement as a percentage of average equity. Average equity is calculated by adding equity at January 1 to equity at December 31 and dividing by two. This indicator shows, from an owner's perspective, the return generated on the owners' invested capital.

The Board of Directors and the CEO certify that the interim report provides a true and fair overview of the operations, ĥ nancial position and results of the Parent Company and the Group and describes the signiĥ cant risks and uncertainties faced by the Parent Company and the companies in the Group.

Stockholm, August 18,2023

Heiner Olbrich Chairman of the Board

Alessandra Cama Jens Högsted Board member Board member

Johanna Schottenius Anette Klintfeldt Board member Board member

Fredrik Lövstedt Mats H Nilsson Board member Board member

Henrik Bunge CEO

The Interim report January-September 2023 will be issued at 07:30 on November 17, 2023.

The Year-end report 2023 will be issued at 07:30 on February 23, 2024.

Financial reports can be downloaded from the company's website, www.bjornborg.com or ordered by phone +46 8 506 33 700, or by e-mail info@bjornborg.com.

Henrik Bunge, CEO Email: henrik.bunge@bjornborg.com Telephone: +46 8 506 33 700

Jens Nyström, CFO Email: jens.nystrom@bjornborg.com Telephone: +46 8 506 33 700

The Björn Borg Group owns the Björn Borg brand, and the focus of the business is sports apparel, underwear and bags. In addition, footwear and glasses are also oĤ ered via licensees. Björn Borg products are sold in around twenty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has its own operations at all levels, from brand development to consumer sales in its own Björn Borg stores. In total, the Group's net sales in 2022 amounted to SEK 835.2 million and the average number of employees was 151. Björn Borg has been listed on Nasdaq Stockholm since 2007.

The images in the interim report are taken from Björn Borg's high summer 2023 collektion.

Björn Borg AB Frösundaviks allé 1 169 70 Solna Sweden www.bjornborg.com

This information is such information that Björn Borg AB is obliged to publish in accordance with the EU Market Abuse Regulation. The information was submitted, through the care of the above contact person, for publication on August 18, 2023 kl 07.30.