Björn Borg

Quarterly Report • Nov 15, 2019

BJÖRN BORG (

BJÖRN BORG AB INTERIM REPORT JANUARY-SEPTEMBER 2019

STRONG SALES GROWTH

JULY 1 - SEPTEMBER 30, 2019

• The Group's net sales increased 13.5 percent to SEK 230.6 million (203.1). Excluding currency effects, sales rose 11.5 percent.
• · Net sales for own e-commerce and e-tailers amounted to SEK 57.8 million (49.5), an increase of 16.9 percent.
• The gross profit margin was 52.5 percent (57.7).
• Operating profit amounted to SEK 33.1 million (37.0).
• Profit after tax amounted to SEK 27.0 million (29.0).
• Earnings per share before and after dilution amounted to SEK 1.07 (1.15).

JANUARY 1 - SEPTEMBER 30, 2019

• · The Group's net sales increased 9.3 percent to SEK 560.4 million (512.7). Excluding currency effects, sales rose 6.3 percent.
• · Net sales for own e-commerce and e-tailers amounted to SEK 143.0 million (116.3), an increase of 23.0 percent.
• · The gross profit margin was 54.7 percent (58.1).
• · Operating profit amounted to SEK 49.9 million (55.0).
• Profit after tax amounted to SEK 41.6 million (45.3).
• Earnings per share before and after dilution amounted to SEK 1.66 (1.81).

QUOTE FROM THE CEO

"It is mainly our sports apparel collection that is driving growth, and I would add that our fall collection has been fantastically received by consumers," commented CEO Henrik Bunge.

SEK million	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
Net sales	230.6	203.1	560.4	512.7	757.3	709.6
Gross profit margin, %	52.5	57.7	54.7	58.1	54.9	57.4
Operating profit	33.1	37.0	49.9	55.0	66.0	71.0
Operating margin, %	14.3	18.2	8.9	10.7	8.7	10.0
Profit after tax	27.0	29.0	41.6	45.3	56.2	59.9
Earnings per share before dilution, SEK	1.07	1.15	1.66	1.81	2.24	2.39
Earnings per share after dilution, SEK	1.07	1.15	1.66	1.81	2.24	2.39
Brand sales*	490	444	1.236	1.149	1.690	1.603

* Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported sales at the wholesale level.

CEO'S COMMENT

The world needs more brands that touch and inspire you and me, brands that make us want to be better. I am proud that Björn Borg is such a brand. During the quarter we again ran a campaign with the goal to help people understand that they can achieve more and that exercise is the activity that gives the most in return. Together with a composer and trainer in unique settings, we delivered the message that exercising to music makes you smarter. A little closer to our vision to be a global sports fashion brand.

Net sales in the quarter were SEK 230.6 million, an increase of 13.5 percent compared with the previous year. Never before have we sold so much. We have seen very good sales growth at the wholesale level in the Netherlands, which is up 60 percent on a currency neutral basis. Sweden, Germany and England also reported good growth. In Finland we are back at last year's level after a big drop in the second quarter. This was a result of our decision to terminate the collaborations with several customers whose work has not aligned with the brand's future direction. Our own comparable stores in Sweden, England, the Netherlands and Belgium grew yearover-year. The Swedish stores in particular had a very strong quarter, with comparable stores growing 8 percent. Our own e-commerce grew 32 percent in the quarter. It is mainly our sports apparel collection that is driving growth, but also underwear shows strong growth, and I would add that our fall collection has been fantastically received by consumers.

The gross profit margin fell to 52.5 percent (57.7), but adjusted for currency effects, with the krona weakening against both the EUR and USD, the margin would have been 54.3 percent. Part of the revenue increase in the quarter is due to discounted sales of old inventory prior to a warehouse move, which is one reason for the lower margin. Our expenses rose and were driven mainly by currency effects, increased variable expenses tied to the strong sales, and higher staff costs as planned. Higher revenue but with a lower gross profit margin and increased expenses reduced our operating profit to SEK 33.1 million (37.0).

The Björn Borg brand is, together with our employees, by far our most important asset. I was more focused in the quarter on our communications. Building a strong sports fashion brand isn't quick or easy, and patience combined with courage are the most important ingredients. We are constantly moving forward. and the most important proof is that more consumers than ever are deciding to buy our sports apparel.

In conclusion, we had a very strong quarter in terms of sales. A weak krona and increasing discounts at the same time are a reality that we have to be even better at handling, so that quarterly profitability can increase.

Let's go!

Head coach, Henrik Bunge

OPERATIONS

BRAND SALES

Brand sales are a calculation of the total sales value of Björn Borg products at the consumer level excluding VAT. In the third quarter brand sales improved. The increase was mainly in sports apparel and underwear, while footwear saw a slight decrease. In total, brand sales rose 11 percent to SEK 490 million (444). Adjusted for currency effects, brand sales increased 9 percent in the quarter. For the first nine months of the year brand sales increased to SEK 1,236 million (1,149), up 8 percent. Excluding currency effects, brand sales rose 5 percent.

PRODUCT AREAS FIRST NINE MONTHS OF 2019

Brand sales in the underwear product area improved 5 percent in the first nine months of 2019, while sports apparel rose 29 percent. Underwear accounted for 55 percent (57) of brand sales.

Brand sales of footwear increased 6 percent compared with the first nine months of 2018, while other licensed products dropped 3 percent. In total, brand sales of licensed products rose 4 percent in the first nine months.

MARKETS FIRST NINE MONTHS OF 2019

Among large markets, the Netherlands and Sweden saw strong growth, while Belgium, Norway, Denmark and Finland declined year-over-year. Smaller markets combined for an increase of 15 percent.

BRAND SALES* OF BJÖRN BORG PRODUCTS JANUARY-SEPTEMBER 2019. TOTAL SEK 1,236 MILLION (1,149) Country Product area**

• * Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported sales at the wholesale level.
• ** Other product areas: Bags, eyewear and homewear.

BJÖRN BORG STORES

One Björn Borg store was closed in Sweden and a new one was opened in Finland. As of September 30, 2019, the total number of Björn Borg stores was 34 (34), of which 30 (30) are Group-owned.

THE GROUP'S DEVELOPMENT

Sales increased in the third quarter, largely due to growth at the wholesale level in the Netherlands and Sweden as well as e-commerce, but also through a stronger EUR. The operating result declined year-over-year due to negative currency effects on the gross profit margin.

QUARTERLY NET SALES AND OPERATING PROFIT, 2016-2019

SALES

Third quarter, July-September 2019

The Group's net sales amounted to SEK 230.5 million (203.1) in the third quarter, an increase of 13.5 percent. Currencies positively affected sales in the quarter. Adjusted for currency effects, sales rose 11.5 percent.

The increase compared with the third quarter of 2018 is largely due to higher net sales in the Dutch wholesale business, which grew 64 percent. Adjusted for currency effects, sales in the Netherlands rose 60 percent. The Swedish wholesale business is also growing, up 49 percent compared with the third quarter of 2018. The one-time effect we saw in the Finnish wholesale business in the second quarter of 2019, driven by a decision to terminate the collaborations with several customers whose work has not aligned with the brand's future direction, has stabilized and sales for the third quarter were in line with the previous year. The German and English wholesale businesses continued to trend higher, growing 7 and 41 percent year-over-year. Growth was driven by higher sales mainly to sporting goods retailers.

Sales for the Swedish retail company increased 8 percent for comparable stores, while total sales rose 10 percent. E-commerce grew by 32 percent in the quarter, with the biggest year-over-year gains in website traffic and orders. The retail companies in the Netherlands and Belgium fell 4 percent in total against the previous year. with comparable

stores growing 2 percent. The retail company in Finland saw a total increase of 26 percent. while comparable store sales were down 1 percent compared with the previous vear. The store in England rose 4 percent compared with the previous year.

The product company's external sales rose year-overyear, mainly driven by the Norwegian market's improved performance, although other markets also reported positive development.

External royalties increased slightly in the quarter, driven by higher licensing revenue from bags.

Nine-month period, January-September 2019

The Group's net sales for the first nine months of 2019 amounted to SEK 560.4 million (512.7), an increase of 9.3 percent. Excluding currency effects, sales rose 6.3 percent.

The positive trend compared with the first nine months of 2018 is largely due to increased net sales in the wholesale footwear business, which grew 10 percent. Sweden, the Netherlands, Germany and England all saw strong growth, while the Finnish market was down 16 percent year-over-year due to our decision to terminate the collaborations with several customers whose work has not aligned with the brand's future direction. The wholesale business in Belgium was also down, by 32 percent driven by poor sell-through.

Sales for the retail company in Sweden fell 2 percent in total due to fewer stores. Comparable store sales rose 3 percent, mainly due to increased foot traffic. Net sales for the retail stores in the Netherlands and Belgium fell 6 percent in total, also due to fewer stores year-over-year. Comparable store sales in the Netherlands and Belgium were at the same level as the previous year. Adjusted for currency effects, sales for comparable stores in the Netherlands and Belgium were down 3 percent. The Finnish retail company saw a sales increase of 7 percent year-over-year, while sales for comparable stores were in line with the previous year. Sales for the retail company in England increased 10 percent. E-commerce saw growth of 20 percent, with website traffic and orders better than the previous vear.

The product companies' external sales increased year-over-year, mainly driven by a positive trend in the Norwegian market.

External royalties increased due to higher licensing revenue mainly from footwear.

PROFIT

Third quarter, July-September 2019

The gross profit margin for the third quarter decreased to 52.5 percent (57.7). A stronger USD, combined with a strong EUR, negatively affected margins. Adjusted for currency effects, the gross profit margin would have been 52.5 percent. In addition, the gross margin was adversely affected by discounted sales of merchandise from previous seasons due to the upcoming replacement of a logistics partner.

		Operating revenue, SEK thousands January-September		Operating profit, SEK thousands January-September		Operating margin, % January-September
Segment	Revenue source	2019	2018	2019	2018	2019	2018
Wholesale	Products	387.488	345.008	31.820	39.208	8	11
Consumer Direct	Products	138.878	133.999	-3.726	-4.101	-3	-3
Distributors	Products	365.789	348.115	9.654	9.492	3	3
Licensing	Royalties	68.751	59.611	12,186	10,372	18	17
Less internal sales		-384,358	-366,870
Total		576,548	519,863	49,934	54,971	9	11

Other operating revenue amounted to SEK 6.2 million (0.7) and mainly refers to unrealized gains on accounts receivable in foreign currency. which positively affects profit.

Operating expenses increased SEK 13.4 million compared with the previous year mainly due to added staff as well as unrealized losses on accounts payable, which negatively affects profit. In connection with the introduction of IFRS 16, other external expenses decreased in the quarter by approximately SEK 10 million, while depreciation increased correspondingly. Net financial items rose by approximately SEK 2.4 million.

The lower gross profit margin in connection with higher operating expenses led to a decrease in operating profit to SEK 33.1 million (37.0). The operating margin was 14.3 percent (18.2).

Net financial items amounted to SEK 1.1 million (-1.4). The improvement compared with 2018 is mainly due exchange rate gains on current receivables, while the introduction of IFRS 16 increased interest expenses in the quarter by SEK 0.9 million (0.0). Profit after tax for the period was SEK 27.0 million (29.0).

Nine-month period, January-September 2019

The gross profit margin for the first nine months of the year decreased to 54.7 percent (58.1). A stronger USD, combined with a strong EUR, negatively affected margins. Adjusted for currency effects, the gross profit margin would have been 57.1 percent.

Other operating revenue amounted to SEK 16.1 million (7.2) and mainly refers to unrealized gains on accounts receivable in foreign currency, which positively affects profit.

Operating expenses increased SEK 22.6 million, or 9.1 percent. Adiusted for currency effects, operating expenses would have risen SEK 19.7 million, or 7.9 percent.

The higher revenue coupled with the lower gross profit margin and higher operating expenses than the previous year led to a decrease in operating profit to SEK 49.9 million (55.0). The operating margin was 8.9 percent (10.7).

Net financial items amounted to SEK 1.3 million (3.0). The decrease compared with 2018 is mainly due to the introduction of IFRS 16, which led to an increase in interest expenses in the first nine months of SEK 2.8 million (0.0). Profit after tax decreased to SEK 41.6 million (45.3).

Development by segment

Björn Borg's segment reporting consists of the company's primary revenue sources, which are divided into: Licensing, Distributors, Wholesale and Consumer Direct, which is also how the business is monitored internally in the Group.

Wholesale

The segment consists of revenue and expenses associated with the Björn Borg Group's wholesale operations. The Group has wholesale businesses in Sweden. Finland, the Netherlands. Belgium and England for apparel and underwear as well as in Sweden, Finland and the Baltic countries for footwear.

The segment's operating revenue increased in the first nine months of 2019 to SEK 387.5 million (345.0). External operating revenue amounted to SEK 383.7 million (343.1), an increase of 12 percent. One reason for the increase is that the company saw growth in all markets except Finland and in the footwear business, where the Netherlands, Sweden and Germany performed very strongly compared with the previous year. Finland lost ground year-over-year as a result of the decision to terminate our collaborations with several customers whose work has not aligned with the brand's future direction. Sales to e-tailers, which primarily sell online, are growing in all markets except England.

Growth in e-tail was 24 percent for the first nine months of the year and amounted to SEK 99.1 million (79.7).

Operating profit amounted to SEK 31.8 million (39.2) compared with the previous year. The decrease is due to lower gross profit margins, which were negatively affected by currencies with a weaker SEK compared with USD and EUR.

Consumer Direct

The segment consists of revenue and expenses associated with the Björn Borg Group's direct sales to consumers. The Björn Borg Group owns and operates a total of 30 stores and factory outlets in Sweden, Finland, the Netherlands, Belgium and England with sales of underwear, sports apparel, adjacent products and other licensed products. In addition. Björn Borg sells online through www.bjornborg.com.

Operating revenue in the Consumer Direct segment increased in the first nine months of 2019 to SEK 138.9 million (134.0). External operating revenue increased in the first nine months to SEK 138.7 million (134.0), up 3 percent. The increase is mainly due to increased store traffic as well as a strong performance in e-commerce, which grew 20 percent vear-over-vear.

The Group's own stores in Sweden declined 2 percent year-over-year, while comparable stores increased 3 percent. The stores in the Netherlands and Belgium were down 6 percent in total. while comparable store sales were in line with the previous year. The Finnish stores saw an increase in total of 7 percent, while comparable stores were in line with the previous year. The store in England grew 10 percent year-over year. In total, sales for comparable stores rose 1 percent compared with the previous vear.

The operating loss for the first nine months of 2019 was SEK 3.7 million, against a vear-earlier loss of SEK 4.1 million. The slightly lower loss is due to higher sales with gross profit margins in line with previous year. External operating expenses increased slightly from the previous year, primarily due to slightly higher logistics expenses in e-commerce as a result of higher sales.

Brick-and-mortar stores play an important role for consumers when combined with a digital presence and help to create a consistent brand image. We therefore continuously reassess conditions and situations to optimize our retail holdings.

Distributors

The Distributors seament mainly consists of revenue and expenses associated with sales to external distributors of product groups developed by the company.

The segment's operating revenue amounted to SEK 365.8 million (348.1) in the first nine months of 2019. External operating revenue rose to SEK 40.2 million (31.0), up 30 percent from the previous year. The year-over-year increase in sales to our distributor for the Norwegian market was the main reason for the improvement. Smaller distributor markets also saw strong growth.

Operating profit increased to SEK 9.7 million (9.5) due to the higher external sales in the segment.

Licensing

The Licensing segment mainly consists of royalty revenue from licensees and expenses for the Group associated with the licensing operations.

The segment's operating revenue amounted to SEK 68.8 million (59.6) in the first nine months of 2019. External operating revenue rose to SEK 14.0 million (11.7). The increase is a result of higher brand sales of licensed products, with footwear and bags accounting for most of the growth. Royalties as a percentage vary between product categories, because of which there is not always an exact correlation between rovalties and brand sales.

Operating profit increased to SEK 12.2 million (10.4) for the first nine months. The improvement is a result of the higher external sales in the segment.

Intra-Group sales

Intra-Group sales for the first nine months of 2019 amounted to SEK 384.4 million (366.9).

SEASONAL VARIATIONS

The Björn Borg Group is active in an industry with seasonal variations. Sales and earnings vary by quarter. See the figure on quarterly net sales and operating profit on page 4.

INVESTMENTS AND CASH FLOW

The Group's cash flow from operating activities amounted to SEK 54.8 million (6.3) in the first nine months of 2019. The improvement from the previous year primarily came from an inventory reduction and because working capital generally increased with the introduction of IFRS 16, where we see a corresponding decrease in financing activities.

Cash flow from investing activities was negative at SEK -7.4 million (-12.9). Large investments were made in existing stores. Total investments in tangible and intangible non-current assets amounted to SEK 7.4 million (11.1) for the period.

Financing activities generated negative cash flow of SEK –85.3 million (–25.3). The negative flow mainly comes from the company's distribution to shareholders of SEK 50.3 million (50.3). The increased outflow compared with the previous period comes from the above-mentioned introduction of IFRS 16, which negatively affected financing activities by SEK 29.4 million (0), but where we see a corresponding positive flow within working capital, as well as convertible loan repayments of SEK 18.2 million (0).

FINANCIAL POSITION AND LIQUIDITY

The Björn Borg Group's cash & cash equivalents and investments amounted to SEK 0 million (22.9) at the end of the period with interest-bearing liabilities of SEK 294.5 million (168.2). The liabilities have been affected by IFRS 16. Interest-bearing net liabilities, excluding lease liabilities, amounted to SEK 162.6 million (145.3). Total lease liabilities amounted to SEK 131.9 million (0.0), of which SEK 92.1 million represents the long-term share and SEK 39.8 million the short-term share.

In addition to the revolving credit of SEK 150 million, Björn Borg has an overdraft facility of SEK 90 million from Danske Bank, of which 12,6 million (0.0) is used.

COMMITMENTS AND CONTINGENT LIABILITIES

As a commitment for the overdraft facility and three-year revolving credit, the company has pledged to ensure that the ratio between the Group's net debt and rolling 12-month operating profit before depreciation and amortization does not exceed 3.00 on the last day of each quarter. Moreover. the Group will maintain an equity/assets ratio of at least 35 percent. The commitments will be updated during the year.

As of September 30, 2019 the ratio was 2.21 (1.78) and the equity/assets ratio was 46.9 percent (47.9). The ratio according to new accounting principles was 2.77 and the equity/assets ratio was 38.1 percent.

No changes were otherwise made with regard to pledged assets and contingent liabilities compared with December 31, 2018.

PERSONNEL

The average number of employees in the Group was 212 (213) for the twelve-month period ending September 30, 2019, of whom 66 percent (68) are women.

RELATED PARTY TRANSACTIONS

There were no material transactions with related parties during the period.

SIGNIFICANT RISKS AND UNCERTAINTIES

In its operations the Björn Borg Group is exposed to risks and uncertainties. Information on the Group's risks and uncertainties can be found on pages 60-61 and in note 3 in the annual report for 2018.

PARENT COMPANY

Björn Borg AB (publ) is primarily engaged in intra-Group activities. As of September 30, 2019 the company owns 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc., Björn Borg Services AB, Björn Borg UK, Baseline and Biorn Borg Finland Ov. In addition. the company owns 75 percent of the shares in Bjorn Borg (China) Ltd.

The Parent Company's net sales for the first nine months of the year amounted to SEK 76.8 million (80.0).

The loss before tax amounted to SEK 1.6 million for the first nine months, compared with year-earlier profit of SEK 10.9 million. Cash & cash equivalents amounted to SEK 7.5 million (3.7) as of September 30, 2019.

EVENTS AFTER THE REPORTING PERIOD

There are no significant events to report after the reporting period.

NUMBER OF SHARES

Björn Borg has 25,148,384 shares outstanding.

FINANCIAL GOALS

Björn Borg's long-term financial goals for the company, which were established in 2015 for the period 2015-2019. have been updated in 2019 and are as follows:

• · Annual sales growth of minimum 5 percent
• Annual operating margin of minimum 10 percent
• · An annual dividend of at least 50 percent of net profit
• · The equity/assets ratio should not fall below 35 percent (according to previous accounting principles).

Comments to the financial objectives:

Sales growth is expected to mainly come from sports apparel. although other product groups are also expected to grow.

ANNUAL GENERAL MEETING

The Annual General Meeting held on May 14, 2019 approved a distribution of SEK 2.00 (2.00) per share for the financial year 2018. Christel Kinning, Fredrik Lövstedt, Mats H Nilsson, Heiner Olbrich, Göran Carlsson and Alessandra Cama were re-elected to the Board of Directors. Anette Klintfeldt was elected as a new Director. The total number of Directors is seven. The AGM resolved to re-elect Heiner Olbrich as Chairman of the Board.

ACCOUNTING PRINCIPLES

This condensed interim report for the Group has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable provisions of the Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with chapter 9 of the Annual Accounts Act on interim reporting and RFR 2 Accounting in Legal Entities. The accounting principles applied in the interim report conform to the accounting principles applied in the preparation of the consolidated accounts and annual report for 2018 with the exception of IFRS 16, which is applied as of January 1, 2019. The accounting principles are described on page 56 in the annual report 2018.

New and amended accounting principles IFRS 16 Leases

As of January 1, 2019 the Group applies IFRS 16. The Group's leasing contracts largely relate to leases of properties and vehicles. The transition is recognized according to the modified retrospective approach, because of which comparative amounts are not restated. The cumulative effect of applying IFRS 16 is recognized on January 1, 2019; see note 4 for further information. Lease liabilities attributable to leases that were previously classified as operating leases according to IAS 17 are measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate as of January 1, 2019. Furthermore, the Group has elected to measure right-of-use assets at an amount corresponding to the lease liability (adjusted for prepaid and accrued leasing fees). In addition to the above, the following exemptions have been applied in connection with review of leases in accordance with IFRS 16: short-term leases (which expire within 12 months of the application date) and assets of low value (less than SEK 50.000) are exempt from leasing. The Group has also elected not to separate non-lease components from lease components for property leases.

Björn Borg has determined that all leases within the Björn Borg Group are to be recognized as leases in accordance with IFRS 16. In cases where property leases within the Björn Borg Group have an extension option, a lease-by-lease assessment is made whether it is reasonably certain that the option will be exercised. This assessment considers all relevant facts and circumstances that create an economic incentive in. e.q., the lease terms for extension periods compared with market interest rates, significant leasehold improvements that have been made (or are expected to be made) during the lease term, costs that arise when the lease is terminated, e.g., negotiation costs and relocation costs, and the weight of the underlying asset in the business.

The Group as lessee (applies as of January 1, 2019) The Group determines whether a contract is or contains a lease at the contract's commencement. The Group recognizes a right-of-use asset and a corresponding lease liability for all leases in which the Group is the lessee. This does not apply, however, to short-term leases (with a term of 12 months or less) and leases where the underlying asset has a low value. For these leases the Group recognizes leasing fees as an operating expense on a straight-line basis over the lease term, unless another systematic approach better reflects how the economic benefits of the underlying asset are consumed by the lessee.

The lease liability is initially measured as the present value of leasing fees that have not been paid on the commencement date, discounted by the lease's implicit rate. If this interest rate cannot be easily determined, the Group uses the incremental borrowing rate. The incremental borrowing rate is the interest rate that a lessee would have to pay for debt financing for a corresponding period, and with corresponding collateral, for the right to use an asset in a similar economic environment.

The following leasing fees are included in the calculation of the lease liability:

• · Fixed fees (including in substance fixed fees), after deducting any economic benefits,
• · Variable leasing fees that are linked to an index or a price, initially measured with the help of an index or price on the commencement date.
• · Amount expected to be paid by the lessee for residual value guarantees,
• The exercise price of an option to buy if the lessee is reasonably certain to exercise such an option, and
• · Termination penalties if the lease term reflects that the lessee will exercise an option to terminate the lease.

The lease liability is presented on a separate line in the Group's statement of financial position.

After first-time adoption the lease liability is measured by increasing the carrying value to reflect the interest rate on the lease liability (applying the effective interest method) and by reducing the carrying value to reflect paid leasing fees.

The Group remeasures the lease liability (and makes a corresponding adjustment to the associated right-of-use asset) if:

• · The lease term has changed or if there is a change in the assessment of an option to buy the underlying asset. In these cases, the lease liability is remeasured by discounting the revised leasing fees by a revised discount rate.
• · The leasing fees change due to changes in an index or price or a change in the amount that is expected to be paid out according to a residual value quarantee. In these cases, the lease liability is remeasured by discounting the revised leasing fees by the initial discount rate (provided the changes in the leasing fees are not due to a revised variable interest rate, in which case the revised discount rate is used instead).
• · A lease is revised and the change is not recognized as a separate lease. In these cases, the lease liability is remeasured by discounting the revised leasing fees by a revised discount rate.

On the acquisition date the right-of-use assets are recognized at the value of the corresponding lease liability, leasing fees paid on or before the commencement date and any initial direct costs. In subsequent periods they are measured at cost after deducting accumulated depreciation and impairment.

Right-of-use assets are depreciated over the estimated period of use or over the lease term, whichever is shorter. If a lease transfers ownership of the underlying asset at the end of the lease term or if the cost of the right-of-use asset reflects that the Group expects to exercise a call option, the underlying asset is depreciated over the period of use. Depreciation begins on the lease's commencement date.

Right-of-use assets are presented on a separate line in the consolidated statement of financial position.

The Group applies IAS 36 Impairment of Assets to test right-of-use assets for impairment and recognizes any impairment losses it identifies in accordance with the description in the section Impairment in the annual report 2018.

Variable leasing fees that are not linked to an index or price are not included in the measurement of the lease liability and right-of-use asset. Such leasing fees are expensed in the period when thev arise and are included on the line Other external expenses in the consolidated income statement.

IFRS 16 allows, as a practical implication, a lessee not to separate non-lease components from lease components and instead recognize each lease component and associated nonlease components as s single lease component. The Group has elected to apply this exemption for property leases.

AUDIT REPORT

This interim report has been reviewed by the company's auditors. The review report can be found on page 16.

OUTLOOK 2019

As a policy, the company does not issue earnings forecasts.

CONSOLIDATED INCOME STATEMENT CONDENSED

SEK thousands Note	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
1 Net sales	230,585	203.132	560,445	512,678	757.343	709.576
Other operating revenue	6,216	727	16,103	7,185	16,123	7,205
Operating revenue	236,801	203,859	576,548	519,863	773,466	716,781
Goods for resale	-109,437	-85.944	-254.010	-214.926	-341.638	-302.555
2 Other external expenses	-41,311	-45,783	-111,390	-135.946	-167.605	-192.161
Staff costs	-35,181	-31,396	-112,276	-103,193	-145,844	-136,761
Depreciation/amortization of tangible/
intangible non-current assets	-12,451	-2.163	-38.164	-6.676	-40.366	-8.877
Other operating expenses	-5.356	-1.574	-10.774	-4.151	-12.048	-5.424
Operating profit	33,065	36,999	49,934	54,971	65,965	71,003
Net financial items	1,075	-1,365	1,326	2,977	1,374	3,025
Profit before tax	34,140	35,634	51,260	57,948	67,339	74.028
Tax	-7.134	-6,680	-9,634	-12,662	-11,114	-14,142
Profit for the period	27,006	28,954	41,626	45,286	56,225	59,886
Profit for the period attributable to
Parent Company's shareholders	27.006	28.965	41,626	45.517	56,236	60,128
Non-controlling interests		-11		-231	-11	-242
Earnings per share before dilution, SEK	1.07	1.15	1.66	1.81	2.24	2.39
Earnings per share after dilution, SEK	1.07	1.15	1.66	1.81	2.24	2.39
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 CONDENSED

SEK thousands	Jul-Sep 2019 Note	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
Net profit for the period	27,006	28,954	41,626	45,286	56,225	59,886
OTHER COMPREHENSIVE INCOME Components that may be reclassified to profit or loss
Translation difference for the period	-1,298	-1,355	-3,899	-705	-2,905	-2,312
Total other comprehensive income for the period	-1,298	-1,355	-3,899	-705	-2,905	-2,312
Total comprehensive income for the period	25,708	27,599	37,727	44,581	53,320	57,574
Total comprehensive income attributable to
Parent Company's shareholders	25,708	27,496	37,727	45.087	53,875	58,635
Non-controlling interests	-	103	-	-506	-555	-1,061

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED

SEK thousands Note	Sep 30 2019	Sep 30 2018	Dec 31 2018
Non-current assets
Goodwill	35,688	34,820	34,746
Trademarks	187,532	187,532	187,532
Other intangible assets	10,122	8,565	9,956
Tangible non-current assets	16,029	16,293	15,390
Deferred tax assets	20,828	22,033	23,228
3 Right-of-use assets	130,905
Total non-current assets	401,104	269,243	270,852
Current assets
Inventory	134,704	135,051	139,564
Accounts receivable	155,614	115,732	130,487
Other current receivables	15,219	17,466	13,625
Cash & cash equivalents		22,891	36,388
Total current assets	305,537	291,140	320,064
Total assets	706,641	560,383	590,916
Equity and liabilities
Equity	269,135	268,712	281,705
Deferred tax liabilities	40,329	42,580	42,892
Non-current liabilities credit institutions	150,000	150,000	150,000
3 Long-term lease liability	92,099
Other non-current liabilities		3,832	3,824
Current liabilities to credit institutions	12,561
Accounts payable	37,416	23.436	37,646
3 Short-term lease liability	39,838
Other current liabilities	65,263	71,823	74,849
Total equity and liabilities	706.641	560,383	590,916

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONDENSED

		Equity attributable to
SEK thousands	Note	Parent Company's shareholders	Non-controlling interests	Total equity
Opening balance, January 1, 2018		276,907	491	277,398
Total comprehensive income for the period		45,087	-506	44,581
Distribution for 2017		-50,297		-50,297
Acquisition of non-controlling interest		-2,531	-439	–2,970
Closing balance, September 30, 2018		269,166	-454	268,712
Opening balance, January 1, 2018		276,907	491	277,398
Total comprehensive income for the period		58,635	-1,061	57.574
Correction of minority share		4,026	-4,026	-
Distribution for 2017		-50,297		-50,297
Acquisition of non-controlling interest		-1,704	-1,266	-2,970
Closing balance, December 31, 2018		287,567	-5,862	281,705
Opening balance, January 1, 2019		287,567	-5,862	281,705
Total comprehensive income for the period		38.027	-300	37,727
Distribution for 2018		-50,297		-50,297
Closing balance, September 30, 2019		275,297	-6,162	269,135

CONSOLIDATED STATEMENT OF CASH FLOWS

CONDENSED

SEK thousands	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Full-year 2018
Cash flow from operating activities
Before changes in working capital	44.684	37.131	78,873	59.696	76,686
Changes in working capital	-29,289	-48.599	-24,094	-53,433	-53,923
Cash flow from operating activities	15,395	-11,468	54,779	6,263	22,763
Acquisition of minority share				-2.970	-2.970
Investments in intangible non-current assets	-435	-2,823	-3,005	-5.253	-7,264
Investments in tangible non-current assets	-1,936	-3,435	-4,365	-5,824	-6,486
Investments/sale of investments		1.112		1,112	1,112
Cash flow from investing activities	-2,371	-5,146	-7,370	-12,935	-15,608
Distribution		-	-50,297	-50,297	-50,297
Amortization of loans		-		-25,000	-25,000
Amortization of lease liability	-9,783	-	-29,436
Repayment of convertible loan	-18,153	-	-18,153
Newly raised loan		-		50,000	50,000
Overdraft facility	12,561	-	12,561
Cash flow from financing activities	-15,375	-	-85,325	-25,297	-25,297
Cash flow for the period	-2,351	-16,614	-37,916	-31,969	-18,142
Cash & cash equivalents at beginning of year	2.170	39.710	36,388	52,620	52,620
Translation difference in cash & cash equivalents	181	-205	1,528	2,240	1,910
Cash & cash equivalents at end of the period	-	22,891	-	22,891	36,388

KEY FIGURES

GROUP

SEK thousands	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
Gross profit margin, %	52.5	57.6	54.7	58.0	54.9	57.4
Operating margin, %	14.3	18.2	8.9	10.7	8.7	10.0
Profit margin, %	14.8	17.5	9.1	11.3	8.9	10.4
Return on capital employed, %	15.7	17.9	15.7	17.9	15.7	18.4
Return on average equity, %	20.9	21.1	20.9	21.1	20.9	21.5
Profit attributable to Parent Company's
shareholders	27.006	28,965	41,626	45.517	56,236	60,128
Equity/assets ratio, % *	38.1	47.9	38.1	47.9	38.1	47.7
Equity per share, SEK	10.70	10.69	10.70	10.69	10.70	11.20
Investments in intangible non-current assets	435	2,823	3,005	5,253	5,016	7.264
Investments in tangible non-current assets	1,936	3,435	4,365	5,824	5,027	6,486
Business acquisition				2.970		2.970
Depreciation, amortization and impairment
losses for the period	-12,451	-2,163	-38,164	-6,676	-40,365	-8,877
Average number of employees	212	211	212	211	213	213

* The key ratio has been affected by the introduction of IFRS16 "Leasing" as of January 1, 2019. The key ratio according to previous accounting principles can be found on page 6.

SUMMARY BY SEGMENT

GROUP

	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Oct 2018-	Full-year
SEK thousands	2019	2018	2019	2018	Sep 2019	2018
Operating revenue
Wholesale
External revenue	162,100	133,856	383,695	343,106	507,074	466,485
Internal revenue	1.749	785	3,793	1,902	4,028	2,136
	163,849	134,641	387,488	345,008	511,102	468,621
Consumer Direct
External revenue	57,150	50,028	138,659	133,992	190,455	185,787
Internal revenue	164		219	7	225	13
	57,314	50,028	138,878	133,999	190,680	185,800
Distributors
External revenue	12,110	15,761	40.175	31,015	58,263	49,102
Internal revenue	133,299	128,847	325,614	317,100	453,421	444,908
	145,409	144,608	365,789	348,115	511,684	494,010
Licensing
External revenue	5,443	4,215	14,018	11,749	17,674	15,406
Internal revenue	22,948	22,219	54,733	47,862	75,234	68,363
	28,391	26,434	68,751	59,611	92,908	83,769
Less internal sales	-158,162	-151,852	-384,358	-366,870	-532,908	-515,419
Operating revenue	236,801	20,859	576,548	519,863	773,466	716,781
Operating profit
Wholesale	21,717	23,608	31,820	39,208	38,256	45,646
Consumer Direct	3,079	4,189	-3,726	-4,101	-2,490	-2,866
Distributors	3,372	5,329	9,654	9,492	14,959	14,797
Licensing	4,897	3,873	12,186	10,372	15,240	13,426
Operating profit	33.065	36.999	49.934	54.971	65.965	71,003

Reconciliation between operating profit and profit before tax

The difference between operating profit for segments for which information must be disclosed, SEK 33,065 thousand (36,999), and the result before tax, SEK 34,140 thousand (35,634), is net financial items, SEK 1,075 thousand (–1,365).

QUARTERLY DATA GROUP

SEK thousands	03 2019	02 2019	01 2019	04 2018	03 2018	02 2018	01 2018	04 2017
Net sales	230,585	141,705	188,155	196,898	203,132	140,341	169,204	170,269
Gross profit margin, %	52.5	55.4	56.8	55.5	57.7	59.9	57.1	58.3
Operating profit/loss	33,065	–1,678	18,545	16,033	36,999	2,888	15,085	16,905
Operating margin, %	14.3	-1.2	ರಿ. 9. 9	8.1	18.2	2.1	8.9	9.9
Profit/loss after financial items	34,140	–2,828	19,946	16,081	35,634	3,216	19,099	15,683
Profit margin, %	14.8	-2.0	10.6	8.2	17.5	2.3	11.3	9.2
Earnings per share before dilution, SEK	1.07	-0.09	0.67	0.58	1.15	0.06	0.60	0.43
Earnings per share after dilution, SEK	1.07	-0.09	0.67	0.58	1.15	0.06	0.60	0.43
Number of Björn Borg stores
at end of period	34	34	34	34	34	38	39	41
of which Group-owned
Björn Borg stores	30	30	30	30	30	34	34	35
Brand sales	490.491	272,185	473.112	453,784	443.527	294,022	411.661	359,775

PARENT COMPANY INCOME STATEMENT CONDENSED

SEK thousands	Note	Jul-Sep 2019	Jul-Sep 2018	Jan-Sep 2019	Jan-Sep 2018	Oct 2018- Sep 2019	Full-year 2018
Net sales		25,658	26.544	76,836	79.964	103,378	106,506
Other operating revenue		458	138	1,997	769	2.043	815
Operating revenue		26,116	26,682	78,833	80,733	105,421	107,321
Goods for resale			-1	-2	-4	-3	-5
Other external expenses	2	-15,771	-13,758	-44,131	-39,346	-67,056	-62,271
Staff costs		-8,654	-7,166	-30,623	-27,197	-38,901	-35,475
Depreciation/amortization of tangible/
intangible non-current assets		-542	-452	-1.555	-1,360	-1,936	-1,741
Other operating expenses		-252	-6	-790	-346	-1.073	-629
Operating profit/loss		897	5,299	1,732	12,480	-3,548	7,200
Result from shares in subsidiaries						50,300	50,300
Net financial items		-815	-354	-3,355	-1,541	-3,281	-1,467
Profit/loss after financial items		82	4,945	-1,623	10,939	43,471	56,033
Group contributions received						58.458	58,458
Appropriations						-609	-609
Profit before tax		82	4,945	-1,623	10.939	101,320	113,882
Tax				-293		-13,700	-13,407
Profit/loss for the period		82	4,945	-1,916	10,939	87,620	100,475
Other comprehensive income
Total comprehensive income
for the period		82	4,945	-1,916	10,939	87,620	100,475

PARENT COMPANY BALANCE SHEET CONDENSED

SEK thousands Note	Sep 30 2019	Sep 30 2018	Dec 31 2018
Non-current assets
Intangible assets	6,743	4,134	5,610
Tangible non-current assets	1,055	644	481
Deferred tax	16	316	16
Shares in Group companies	344,106	344,106	344,106
Total non-current assets	351,920	349,200	350,213
Current assets
Receivables from Group companies	714,926	609,261	684,330
Current receivables	6,687	4,079	5.794
Cash & cash equivalents	7,455	3,677	2,143
Total current assets	729,068	617,017	692,267
Total assets	1,080,988	966,217	1,042,480
Equity and liabilities
Equity	149,075	111,752	201,288
Untaxed reserves	609		609
Non-current liabilities credit institutions	150,000	150,000	150,000
Other non-current liabilities		3,832	3.824
Due to Group companies	753.355	671,164	640,514
Accounts payable	8,413	4,295	8,570
Other current liabilities	19,536	25,174	37,675
Total equity and liabilities	1,080,988	966,217	1,042,480

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY CONDENSED

SEK thousands	Jan-Sep	Jan-Sep	Full-year
	2019	2018	2018
Opening balance	201,288	151.110	151.110
Distribution	-50.297	-50,297	-50.297
Total comprehensive income for the period	-1,916	10.939	100.475
Closing balance	149,075	111,752	201.288

SUPPLEMENTARY DISCLOSURES NOTE 1 NET SALES

The Group's net sales consist of sales of products and royalties for usage of the company's brand. Transfers of goods/royalties are made at fixed points in time.

		Group
SEK thousands	Jan-Sep 2019	Jan-Sep 2018
Sweden	208.091	186.481
Netherlands	147.032	125.709
Finland	82.185	91.574
Other	123.137	108.914
Total	560,445	512,678

NOTE 2 OTHER EXTERNAL EXPENSES

	Group		Parent Company
	Jan-Sep	Jan-Sep	Jan-Sep	Jan-Sep
SEK thousands	2019	2018	2019	2018
Cost of premises	5.896	36.746	8.364	7.634
Selling expenses	34.586	32.925	2.835	2.120
Marketing expenses	40.077	39.072	19.730	18.396
Administrative
expenses	23.171	19.376	11.286	8.679
Other	7.660	7,827	1.916	2.517
Total	111,390	135.946	44.131	39.346

* The difference of SEK 30.9 million in Cost of premises refers to SEK 30.5 million due to a change of accounting principle regarding leasing agreements, where the leasing fee is no longer recognized as an operating expense but the payment of the leasing fee is reported as interest and amortization. Similarly, Selling expenses were affected by SEK 2.1 million. As a result, Other external expenses decreased by a total of SEK 32.6 million compared with the previous year.

NOTE 3 EFFECTS OF TRANSITION TO IFRS 16 LEASING

EFFECTS ON ASSETS, LIABILITIES AND EQUITY, 1 JANUARY 2019

Total equity and liabilities	590,916	149,989	740,905
Total current liabilities	112,495	43,229	155,724
Short-term lease liability		43,229	43,229
Other current liabilities	74,849		74,849
Accounts payable	37.646		37,646
Total non-current liabilities	478,421	106,760	585,181
Long-term lease liability		106,760	106,760
Liabilities to credit institutions	153,824		153,824
Deferred tax liabilities	42.892		42,892
Equity	281,705		281,705
Equity and liabilities
Total assets	590,916	149,989	740,905
Total current assets	320,064		320,064
Total non-current assets	270,852	149,989	420,841
Right-of-use assets		149,989	149,989
Deferred tax assets	23,228		23,228
Tangible non-current assets	15,390		15,390
Intangible assets	232,234		232,234
Assets
SEK thousands	December 31, 2018	to IFRS 16	January 1, 2019
	Recognized balance sheet items	Restatement	Restated balance sheet items

DEFINITIONS

The company presents certain financial measures in this interim report that are not defined according to IFRS. The company considers these measures to be valuable complementary information for investors and the company's management. Since not all companies calculate financial measures in the same way, they are not always comparable with measures used by other companies. Consequently, these measures should not be seen as a substitute for measures defined according to IFRS. For more on the calculation of these key financial ratios, see https://corporate.bjornborg.com/en/section/investors/ interim-reports/

BRAND SALES

Estimated total sales of Björn Borg products at the consumer level, excluding VAT, based on reported wholesale sales. Purpose: Shows the sales trend measured as retail value excluding VAT.

CAPITAL EMPLOYED

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

Purpose: Capital employed measures capital use and efficiency.

COMPARARI F STORE SALES

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

Purpose: To obtain comparable sales between periods for own stores.

EARNINGS PER SHARE (DEFINED ACCORDING TO IFRS)

Profit after tax in relation to the weighted average number of shares during the period.

Purpose: This indicator is used to assess an investment from an owner's perspective.

EARNINGS PER SHARE AFTER DILUTION (DEFINED ACCORDING TO IFRS)

Earnings per share adjusted for any dilution effect. Purpose: This indicator is used to assess an investment from an owner's perspective.

EQUITY/ASSETS RATIO

Equity as a percentage of total assets. Purpose: This indicator shows financial risk, expressed as a share of total restricted equity financed by the owners.

GROSS PROFIT MARGIN

Net sales less cost of goods sold divided by net sales. Purpose: Gross marqin is used to measure operating profitability.

GROSS PROFIT MARGIN BEFORE ACQUISITIONS

Net sales less cost of goods sold divided by net sales. Purpose: Gross margin before acquisitions is used to measure operating profitability adjusted for acquisition effects.

GROUP NET SALES EXCL. CURRENCY EFFECTS

Net sales calculated using year-earlier exchange rates. Purpose: To obtain comparable and currency neutral net sales.

NET DEBT

Interest bearing liabilities less investments and cash & cash equivalents. Purpose: Net debt reflects the company's total debt situation.

NET DEBT TO EBITDA RATIO

Interest bearing liabilities less investments and cash & cash equivalents divided by operating profit before depreciation/amortization.

Purpose: This indicator shows the company's ability to pay debts.

NET FINANCIAL ITEMS

Financial income less financial expenses. Purpose: Describes the company's financial activities.

OPERATING MARGIN

Operating profit as a percentage of net sales. Purpose: The operating margin is used to measure operating profitability.

OPERATING PROFIT

Profit before tax plus net financial items. Purpose: This indicator facilitates profitability comparisons regardless of the company's tax rate and independent of its financing structure.

PROFIT MARGIN

Profit before tax as a percentage of net sales. Purpose: Profit margin shows the company's profit in relation to its sales.

RETURN ON CAPITAL EMPLOYED

Profit before tax (per rolling 12-month period) plus financial expenses as a percentage of average capital employed. Purpose: This indicator is the key measure to quantify the return on the capital used in operations.

RETURN ON EQUITY

Profit 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.

Purpose: This indicator is used to show, from an ownership 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, financial position and results of the Parent Company and the Group and describes the material risks and uncertainties faced by the Parent Company and the companies in the Group.

Stockholm, November 14, 2019

Heiner Olbrich Chairman

Alessandra Cama Board member

Göran Carlson Board member

Anette Klintfeldt Board member

Fredrik Lövstedt Board member

Christel Kinning Board member

Mats H Nilsson Board member

Henrik Bunge CFO

REVIEW REPORT

INTRODUCTION

We have reviewed the interim report for Björn Borg AB (publ) for the period January 1 to 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 is substantially less in scope than an audit conducted in accordance with the International Standards of Auditing (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 aspects, prepared in accordance with IAS 34 and the Annual Accounts Act for the Group and in accordance with the Annual Accounts Act for the Parent Company.

Stockholm, November 14, 2019 Deloitte AB

Didrik Roos Authorized Public Accountant

CALENDAR 2019

Year-end report for 2019 at 7:30 am (CET) on February 21, 2020.

Annual report 2019 in late April 2020. Annual General Meeting 2019 will be held on May 14, 2020.

FINANCIAL REPORTS

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

SHAREHOLDER CONTACT

Henrik Bunge, CEO E-mail: henrik.bunge@bjornborg.com Tel: +46 8 506 33 700

Jens Nyström, CFO E-mail: jens.nystrom@bjornborg.com Tel: +46 8 506 33 700

ABOUT THE BJÖRN BORG GROUP

The Group owns the Björn Borg trademark and its core business is sports apparel and underwear. It also offers footwear, bags and eyewear through licensees. Björn Borg products are sold in around twenty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has operations at every level from branding to consumer sales in its own Björn Borg stores. Total sales of Björn Borg products in 2018 amounted to about SEK 1.6 billion, excluding VAT, at the consumer level. Group net sales amounted to SEK 709.6 million in 2018, with an average of 213 employees. The Björn Borg share has been listed on Nasdaq Stockholm since 2007.

IMAGES IN THE INTERIM REPORT

The images in the interim report are taken from Björn Borg's fall/winter 2019 collection.

Björn Borg AB Tulegatan 11 SE-113 53 Stockholm, Sweden www.bjornborg.com

Björn Borg is required to make public this information according to the EU's Market Abuse Regulation. The information was released for publication by the above-mentioned contacts on November 15, 2019 at 7:30 am (CET).