Björn Borg

Quarterly Report • Aug 16, 2024

Björn Borg AB ¶ Interim report January«June 2024

Very strong growth

• ¸ Group net sales amounted to SEK 213.2 million (165.6), an increase of 28.7 percent. Currency neutral, net sales increased by 28.3 percent.
• ¸ Net sales for own e-commerce increased by 8.9 percent to SEK 40.8 million (37.5), while net sales for own e-commerce and e-tailers amounted to SEK 87.9 million (76.8), an increase of 14.5 percent.
• ¸ The gross proĥ t margin amounted to 51.8 percent (55.6). Currency-neutral, the gross proĥ t margin amounted to 52.3 percent, a decrease of 3.3 percentage points.
• ¸ Operating proĥ t amounted to SEK 9.5 million (8.1), an increase of 17.5 percent. Currency-neutral, the operating proĥ t amounted to SEK 10.3 million, an increase of 27.5 percent.
• ¸ Proĥ t after tax amounted to SEK 6.5 million (4.2), an increase of 55.7 percent.

• ¸ Earnings per share before and after dilution amounted to SEK 0.26 (0.17).

• ¸ Group's net sales amounted to SEK 470.0 million (412.5), an increase of 13.9 percent. Currency neutral, net sales increased by 13.6 percent.

• ¸ Net sales for own e-commerce increased by 14.8 percent to SEK 81.4 million (70.9), while net sales for own e-commerce and e-tailers amounted to SEK 195.1 million (169.8), an increase of 14.9 percent.
• ¸ The gross proĥ t margin amounted to 52.6 percent (53.6). Currency-neutral, the gross proĥ t margin amounted to 52.7 percent, a decrease of 0.9 percentage points.
• ¸ Operating proĥ t amounted to SEK 43.0 million (39.5), an increase of 8.9 percent. Currency-neutral, operating proĥ t amounted to SEK 43.0 million, an increase of 9.0 percent.
• ¸ Proĥ t after tax amounted to SEK 27.7 million (29.0), a decrease of 4.3 percent.
• ¸ Earnings per share before and after dilution amounted to SEK 1.10 (1.15).

"As the quarter's absolute victory, we can state that the footwear product group grew by a whopping 199 percent."

SEK million	Apr-Jun 2024	Apr-Jun 2023	Jan-Jun 2024	Jan-Jun 2023	Jul 2023- Jun 2024	Full year 2023
Net sales	213.2	165.6	470.0	412.5	929.7	872.3
Gross proĥ t margin, %	51.8	55.6	52.6	53.6	53.5	54.0
Operating proĥ t	9.5	8.1	43.0	39.5	104.1	100.6
Operating margin, %	4.5	4.9	9.1	9.6	11.2	11.5
Proĥ t after tax	6.5	4.2	27.7	29.0	74.7	76.0
Earnings per share before dilution, SEK	0.26	0.17	1.10	1.15	2.97	3.02
Earnings per share after dilution, SEK	0.26	0.17	1.10	1.15	2.97	3.02

CEO comments

The strong start into 2024 continued during the second quarter where sales increased by 30 percent to SEK 220.8 million (169.9) in an environment that remained challenging. From a category perspective, the main driver of growth was footwear with a whopping increase of 199 percent due to the integration of the footwear category which began in the ĥ rst quarter triggered by the bankruptcy of our previous license partner. As importantly, sportswear continued to develop very strongly with an impressive 43 percent growth. Also bags, a product category which we integrated a few years ago, developed well with an increase of 33 percent. Underwear, our largest category, grew by a respectable 6 percent. The positive trend across all categories clearly conĥ rms that our brand as our most important asset continues to strengthen

All of our sales channels showed positive development during the quarter. Above all, our largest channel, the wholesale channel, grew by 50 percent. Within the wholesale channel we saw good development from our external e-retailers, with an increase of 20 percent. The strongest growth, however, took place within physical wholesale sales, which increased by 72 percent. Our own e-commerce continued to develop positively and grew by 9 percent. During the quarter, we increased our focus on full-price sales and reduced the sale rate on our own e-commerce. Admittedly, this slowed down the earlier strong growth in sales, but it has instead resulted in good proĥ tability. Our own comparable stores grew by 4 percent, and our distributors recovered somewhat during the quarter and grew by 4 percent.

Finally, all of our markets did well during the quarter, with some of them developing exceptionally well. The Netherlands increased by 53 percent, Belgium by 42 percent and Sweden by 40 percent. In addition, Germany, Denmark and Finland also showed good development compared to the previous year.

While sales developed very positively, the gross proĥ t margin was temporarily down to 51.8 percent (55.6) mainly due to disadvantageous currency developments, increased transport costs as well as exceptional one-oĤ discounts linked to the integration of the footwear business. Despite a lower gross proĥ t margin, we increased our operating proĥ t to SEK 9.5 million (8.1) .

We started the year with a setback when our footwear partner went into bankruptcy. But now, eight months later, I can once again state that we as a team and as a company possess an exceptional ability to deal with challenges. We can attribute this success to employees who never give up, a determined Board and patient shareholders. Nothing is impossible, and I can hardly count all the records we have broken in the recently concluded second quarter. But I know that this is just the beginning, and that we will continue to break records in the future.

Now, let's go!

Head coach, Henrik Bunge

The Group's development

The second quarter of the year showed an improvement in the total operating revenue, including other revenue, of 30 percent to SEK 220.8 million (169.9). Adjusted for currency e Ĥ ects, operating income showed an increase of 30 percent for the quarter.

For the ĥ rst six months of the year, the total operating revenue increased by 15 percent, to SEK 481.6 million (420.1). Currency neutral, the increase was 14 percent.

The underwear product area showed increased sales of 6 percent for the second quarter of 2024 where, above all, sales through own e-commerce continued to grow strongly with an increase of 12 percent. Within the wholesale business too, underwear also grew in the quarter, with an increase of 7 percent, while sales in own stores decreased by 4 percent, mainly as a result of fewer stores compared to last year's second quarter. Sales to external distributors showed a recovery, and sales in the product area underwear grew by 13 percent.

For the ĥ rst half of 2024, underwear sales grew overall by 8 percent with own e-commerce accounting for the largest increase of 13 percent.

Sports apparel continued to show strong development and increased by 43 percent in the second quarter of the year where, above all, sales in the wholesale business continued to grow strongly with an increase of 134 percent. Own e-commerce also continued to grow and increased by 29 percent. Sales to external distributors decreased

within the sports apparel product area by 51 percent, while own stores increased by 7 percent.

For the ĥ rst half of 2024 sports apparel overall grew by 31 percent, with the wholesale business showing growth of 55 percent and own e-commerce showing growth of 21 percent.

Sales of footwear recovered as planned following the previously mentioned takeover of the distribution from the third party who went bankrupt. Growth during the year's second quarter 2024 was 199 percent compared to the second quarter of the previous year. Overall, this means that the footwear product area grew by 35 percent in the year's ĥ rst six months compared to the previous year.

The product area bags also recovered during the second quarter and grew by 33 percent and thus by 10 percent for the ĥ rst half year.

Other product areas were on par with the previous year.

The largest market, Sweden, increased by 40 percent during the second quarter of the year, where wholesale operations increased by 53 percent. This was primarily due to a positive timing eĤ ect resulting from the takeover of the distribution of footwear which created delays in distribution between the ĥ rst and second quarters of 2024. Own e-commerce in Sweden continued to grow strongly and increased by 27 percent. The second largest market, the Netherlands, increased by 52 percent. Here too, footwear accounted for a large part of the growth. Germany showed an increase of 15 percent compared to last year's second quarter due to a strong sell-through at the major retailers. Finland increased in the quarter by 10 percent, here too depending on the positive timing eĤ ect within

the category footwear as mentioned above. Denmark increased by 20 percent and Belgium increased by 42 percent. Other smaller markets remained on a par with the previous year.

The largest channel, the wholesale operations, showed an increase of 50 percent in the second quarter of 2024, where e-tailers within the wholesale business increased by 20 percent, mainly due to strong development in the German and the Dutch markets. Physical stores increased by 72 percent in the quarter, with footwear accounting for the largest increase. In the ĥ rst half of 2024, wholesale operations increased by 19 percent. Own stores increased by 17 percent in the quarter and by 10 percent for the ĥ rst six months. A signiĥ cant share of the increase consisted of late, added contributions from the Dutch state in the form of a Covid grant. Overall these contributions amounted to SEK 4 million in the quarter and SEK 6 million for the half year. For comparable stores, i.e. stores that were open in both comparison quarters, and adjusted for government grants, sales increased by 4 percent in the quarter and by 2 percent for the ĥ rst half of the year. Own e-commerce showed continued strong growth and increased by 9 percent in the quarter and by 15 percent for the ĥ rst half of the year. Distributors recovered in the second quarter and grew by 4 percent although they continued to show a decrease for the ĥ rst six months of the year of 2 percent.

Group net sales during the second quarter amounted to SEK 213.2 million (165.6), an increase of 28.7 percent. The currency eĤ ect on sales in the quarter was positive, and adjusted for currency eĤ ects, net sales increased by 28.3 percent.

The main explanation for the increase between the quarters was the result of the takeover of the distribution of footwear which partly created a positive timing eĤ ect due to the delay in distribution between the ĥ rst and second quarters 2024, as well as the distribution of footwear into what were new markets for the company. Furthermore, the sports apparel product area showed continued strong development with a growth of 43 percent. For further details, see below under "Development by segment."

Group net sales for the ĥ rst half year amounted to SEK 470.0 million (412.5), an increase of 13.9 percent. The currency eĤ ect on turnover in the quarter was positive, and adjusted for currency eĤ ects, net sales increased by 13.6 percent.

The main explanation for the increase during the ĥ rst half of the year was the distribution of footwear into what were new markets for the company, and that sports apparel continued to show strong growth with an increase of 31 percent. For further details, see below under "Development by segment."

The gross proĥ t margin for the second quarter decreased to 51.8 percent (55.6). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 52.3 percent. The decrease was mainly the result of the increased shortterm discounts for footwear which in turn could be linked to the takeover of the footwear business from the former third party who went bankrupt. A generally greater focus on proĥ tability in the wholesale business together with reduced discounts within sales directly to consumers, however, led to the opposite positive eĤ ect.

Other operating income amounted to SEK 7.6 million (4.2) and mainly referred to unrealized gains on accounts receivable in foreign currency as well as governmental Covid-contributions from the Netherlands.

Operating costs in the quarter increased by SEK 20 million compared to the previous year's second quarter, above all through increased marketing activities.

Increased sales with lower gross proĥ t margins, and increased operating costs meant that the operating proĥ t increased to SEK 9.5 million (8.1).

Net ĥ nancial items amounted to –0.4 MSEK (-2.7). The change in 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 6.5 million (4.2).

The gross proĥ t margin for the ĥ rst half of the year decreased to 52.6 percent (53.6). Adjusted for currency eĤ ects, the gross proĥ t margin would have been 52.7 percent. It was, above all, the increased short-term discounts for footwear, which in turn could be linked to the takeover of the footwear business from the previous third party who went bankrupt, which caused the decrease. A generally greater focus on proĥ tability in wholesale operations as well as reduced discounts within direct sales to the consumer, however, led to the opposite positive eĤ ect.

Other operating income amounted to SEK 11.6 million (7.6) and mainly referred to unrealized gains on accounts receivable in foreign currency as well as governmental Covid-contributions from the Netherlands.

Planned operating costs increased by SEK 27 million compared to the previous year's ĥ rst half year primarily through increased marketing activities.

Increased sales with lower gross proĥ t margins, as well as slightly increased operating costs meant that overall operating proĥ t increased to SEK 43.0 million (39.5).

Net ĥ nancial items amounted to –7.0 MSEK (–3.4). The change in net ĥ nancial items compared to the previous year was mainly attributable to revaluation of ĥ nancial assets and liabilities in foreign currency.

The period's result after tax decreased to SEK 27.7 million (29.0).

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 followed up internally in the Group.

The segment's external operating income amounted during the year's ĥ rst six months to SEK 325.3 million (272.9) which was an increase of 19 percent. One explanation for the increase was the expanded distribution of footwear in new markets, and also that sports apparel continued to show strong growth with an increase of 55 percent. Furthermore, the company saw increased demand from e-tailers within the segment, players who primarily sell online, where growth for the ĥ rst half of the year was 15 percent, up to 114 MSEK (99). Physical stores in the segment grew by 22 percent and amounted to SEK 212 million (174). Within the wholesale business, the largest market, Sweden, showed an overall increase of 15 percent. The increase was mainly due to strong growth in the sports apparel product area Which grew by 90 percent in the ĥ rst half of the year. The next largest market, the Netherlands, increased in the segment by 27 percent and the distribution of footwear now constitutes an essential part of their business. The Finnish market was on par with last year. Germany increased by 13 percent due to a strong sell-through at the larger retailers.

Operating proĥ t amounted to SEK 25.2 million (26.1). It was, above all, the planned higher operating costs in in connection with the takeover of the distribution of footwear which caused the operating proĥ t to decrease by 4 percent.

Own e-commerce continued to grow strongly. During the ĥ rst half of 2024, own e-commerce increased by 15 percent to SEK 81.4 million (70.9). The increase was mainly due to strong growth in the sports apparel product area which grew by 21 percent compared to the previous year. The underwear product area also increased strongly and grew by 13 percent. Footwear continued to show strong momentum and grew by 79 percent, while bags grew by 81 percent.

The operating proĥ t for the ĥ rst half of 2024 amounted to SEK 11.8 million (11.2), an increase of 6 percent. The improvement came mainly from the increased sales while maintaining high margins.

		Operating income, SEK thousands January-June			Operating proĥ t, SEK thousands January-June	Operating margin,% January-June
Segment	Revenue type	2024	2023	2024	2023	2024	2023
Wholesale	Products	325,253	272,919	25,180	26,114	8	10
Own e-commerce	Products	81,405	70,890	11,792	11,162	14	16
Own stores	Products	50,682	46,252	137	–6,852	0	–15
Distributors	Products	22,561	23,058	4,425	2,947	20	13
Licensing	Royalties	1,701	6,971	1,453	6,116	85	88

Own physical stores showed overall growth of 10 percent for the ĥ rst half of 2024 which amounted to SEK 50.7 million (46.3), despite the company strategy to close down unproĥ table stores. However, a signiĥ cant proportion consisted of an increase in late contributions from the Dutch state in the form of Covid grants. Taken together, these contributed SEK 6 million for the ĥ rst half of 2024. For comparable stores, i.e. stores that were open during both comparison quarters and adjusted for the government subsidies, sales increased by 2 percent for the ĥ rst half of the year.

In the Netherlands, sales in own stores also increase by 37 percent including government contribution, and 3 percent excluding the contribution. In Sweden, sales in own stores decreased by 6 percent due to the closure of unproĥ table stores. For comparable stores in Sweden, sales increased by 4 percent Sales in Finland decreased by 4 percent in total and for comparable stores as well, while Belgium decreased by 26 percent in total and increased by 8 percent in comparable stores.

The operating proĥ t for the ĥ rst half of 2024 amounted to SEK 0.1 million (–6.9). The improvement in operating proĥ t was mainly the result of improved margins and lower operating costs due to fewer stores.

The segment's external operating income decreased by 2 percent in the ĥ rst half of 2024 compared to 2023, and amounted to SEK 22.6 million (23.1). Sales to the largest distributor market, Norway, increased by 22 percent, while Great Britain and other smaller distributors decreased by 28 percent compared to the previous year, mainly due to large stocks and thus fewer purchases from the respective markets.

However, operating proĥ t increased to SEK 4.4 million (2.9) as a result of the lower operating costs associated with the segment.

The segment's external operating income decreased during ĥ rst half of 2024 compared to 2023, and amounted to 1.7 MSEK (7.0). This was a result of the company taking over the distribution of footwear which previously accounted for a signiĥ cant part of the revenues in the segment.

The operating proĥ t amounted to SEK 1.5 million (6.1) for 2024.

Intra-Group sales for 2024 amounted to SEK 325.2 million (274.2).

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 'Net sales and operating proĥ t per quarter' on page 5.

The cash Ħ ow from the ongoing operations in the Group during the ĥ rst half of 2024 amounted to SEK 17.9 million (50.5). The deterioration compared to the previous year primarily came from increased working capital due to the integration of the footwear business.

The cash Ħ ow from investment activities was negative at –8.3 MSEK (–5.4). The larger investments primarily referred to the remodeling of the oħ ce in the Netherlands. Cash Ħ ow from ĥ nancing activities amounted to SEK –25.0 million (–54.0). The improvement, compared to the previous year, was due to the increased utilization rate of bank facilities and lower loan repayments.

The Björn Borg Group's cash and cash equivalents at the end of the period amounted to SEK 9.4 million (10.1), plus unused bank facilities of SEK 139.3 million (114.1). At the end of the second quarter, the company had a net debt, excluding lease liabilities, of SEK 51.2 million (25.8). The company has continued to have strong liquidity mainly due to increased earnings. Total interest-bearing liabilities amounted to SEK 105.3 million (82.3), where total leasing debt amounted to SEK 44.6 million (46.4), of which SEK 26.9 million was the long-term share and SEK 17.7 million was the short-term share.

The Björn Borg Group has SEK 200 million in bank facilities, of which SEK 60.7 million was utilized as of June 30, 2024. The fair value of ĥ nancial instruments corresponded in all material respects to the book value.

As a commitment for the overdraft, 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 30 June, 2024, the ratio of the Group's debt was 0.45 (0.29) and the equity ratio amounted to 46.0 percent (49.6).

There have been no signiĥ cant changes in collateral and contingent liabilities compared to 31 December, 2023.

The average number of employees in the Group for the twelve-month period which ended on 30 June, 2024 was 151 (150), of which 68 percent (68) were women.

In addition to the customary remuneration (salary, fees and other beneĥ ts) to the CEO, senior executives and Board of Directors, as well as intra-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 regarding the Group's risks and uncertainties is given on page 60 of the annual report for 2023.

The company notes, however, that the geopolitical

situation in the world remains challenging. It is currently diħ cult to determine how these challenges aĤ ect the Björn Borg Group's operations ĥ nancially, but the fact that the company does not do business in Russia, Ukraine or Israel minimizes any risks which might impact the business, although declining consumer conĥ dence in the future could have an indirect, negative eĤ ect.

Furthermore, the company notes that interest rates in the markets in which the Björn Borg Group operates continue to be at high levels. Taken together, these macroeconomic eĤ ects could have a further impact on consumers' purchasing behavior.

Björn Borg AB (publ) mainly conducts intra-Group operations. As of June 30, 2024, the company owned 100 percent of the shares in Björn Borg Brands AB, Björn Borg Footwear AB, Björn Borg Inc, 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 the year 2024 amounted to SEK 53.7 million (50.5).

Proĥ t before tax amounted to –16.2 MSEK (–7.6). Cash and cash equivalents at the end of the period amounted to SEK 0 million (0).

As the company previously announced, the product category footwear has been integrated into existing operating activities. This happened because Björn Borg Group's former license partner for the product category footwear, Serve & Volley BV, went bankrupt. Thus, Björn Borg will now design, product develop and distribute products within the footwear category to all markets. Although in the short term the integration may mean certain challenges in terms of maintaining the same levels of sales and margins, the takeover of the footwear business is expected to provide signiĥ cant future growth opportunities.

The number of shares in Björn Borg amounts to 25,148,384 shares (25,148,384) i.e. no change from the previous period.

Björn Borg's long-term ĥ nancial goals for the business, which were last set in 2019 for a ĥ ve-year period to 2023, have been extended and now apply until further notice. The ĥ nancial goals are:

• ¸ Annual sales growth of at least 5 percent.
• Annual operating margin of at least 10 percent.
• An annual dividend of at least 50 percent of net proĥ t after tax.
• The equity ratio should not fall below 35 percent.

Sales growth is

expected to come from growth in, above all, sports apparel and short to mid term from the footwear business as well, although other product groups are expected to grow as well.

The Annual General Meeting held on May 16, 2024 approved on a distribution of SEK 3.00 (2.00) per share to the shareholders for the ĥ nancial year 2023. Fredrik Lövstedt, Mats H Nilsson, Heiner Olbrich, Alessandra Cama, Anette Klintfeldt, Jens Høgsted and Johanna Schottenius were re-elected to the Board of Directors. The total number of members is seven. The Meeting resolved to re-elect Heiner Olbrich as Chairman of the Board of Directors.

This interim report summary for the Group has prepared in accordance with IAS 34 and all of the applicable regulations. The interim report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, as well as RFR 2, Accounting for legal entities. The accounting principles applied in the interim report are consistent with the accounting principles that were applied when preparing the Group Annual Report 2023 (see page 56 in the Annual Report for 2023). New and amended standards and new interpretations that apply from 1 January 2024 have not had any signiĥ cant impact on the Group's ĥ nancial reports.

When drawing up an interim report, it is required that the company management make judgments and estimates regarding assumptions that aĤ ect the application of the Group's (and the Parent Company's) accounting principles as well as reported amounts for assets, liabilities, revenue and costs. The eĤ ects of the current geopolitical situation and its possible negative ĥ nancial impact have been considered. The outcome of the said assessments has not made any signiĥ cant impact on the Group 's ĥ nancial reports. Important estimates and judgments appear in the Annual Report for 2023. No signiĥ cant changes to the estimates or judgments have occurred compared to the 2023 Annual Report.

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 2024	Apr-Jun 2023	Jan-Jun 2024	Jan-Jun 2023	Jul 2023- Jun 2024	Full year 2023
1 Net sales	213,205	165,631	469,993	412,523	929,731	872,261
Other operating revenue	7,586	4,239	11,609	7,568	23,571	19,530
Goods for resale	–102,832	–73,576	–222,771	–191,536	–432,367	–401,132
2 Other external expenses	–58,238	–41,218	–117,912	–96,237	–227,981	–206,307
Personnel costs	–38,202	–33,952	–75,097	–67,910	–142,216	–135,029
Depreciation/amortization of tangible/
intangible non-current assets	–8,060	–8,182	–16,210	–16,805	–82,420	–33,015
Other operating expenses	–3,942	–4,842	–6,625	–8,117	–14,265	–15,758
Net ĥ nancial items	–444	–2,699	–6,960	–3,420	–6,399	–2,859
Tax	–2,551	–1,212	–8,294	–7,092	–22,924	–21,722
Parent Company shareholders	6,522	4,189	27,733	28,974	74,730	75,969
Non-controlling interests	–	–	–	–	–	–
Earnings per share before dilution, SEK	0.26	0.17	1.10	1.15	2.97	3.02
Earnings per share after dilution, SEK	0.26	0.17	1.10	1.15	2.97	3.02
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 2024	Apr-Jun 2023	Jan-Jun 2024	Jan-Jun 2023	Jul 2023- Jun 2024	Full year 2023
Translation diĤ erence for the period		–1,940	5,591	2,805	7,297	–5,059	–567
Parent Company shareholders		4,552	9,933	30,856	36,424	69,537	75,103
Non-controlling interests		30	–213	–318	–153	134	299

Consolidated statement of nancial position

	Jun 30,	Jun 30,	Dec 31,
Note SEK thousands	2024	2023	2023
Goodwill	36,949	37,813	36,422
Trademarks	187,532	187,532	187,532
Other intangible assets	6,084	7,003	6,401
Tangible non-current assets	20,981	18,250	17,663
Deferred tax assets	10,467	13,139	12,310
Right-of-use assets	45,838	46,537	43,942
Inventory	194,372	182,399	184,361
Accounts receivable	124,475	101,276	99,379
Other current receivables	29,067	24,506	16,869
Cash and cash equivalents	9,449	10,115	26,646
Equity	305,909	311,686	350,817
Deferred tax liabilities	39,605	39,747	39,701
Long-term lease liabilities	26,906	27,064	25,470
Current liability to credit institution	60,663	35,897	–
Accounts payable	143,204	127,828	135,792
Short-term lease liabilities	17,732	19,315	17,379
Other current liabilities	71,195	67,033	62,366

Consolidated statement of changes in equity

						IN SUMMARY
--	--	--	--	--	--	------------	--	--

		Equity attributable to the parent company's	Possession without controlling	Total
SEK thousands	Note	shareholders	inĦ uence	equity
Total comprehensive income for the period		36,424	–153	36,271
Distribution for 2022		–50,297	–	–50,297
Warrant premium		903	–	903
Total comprehensive income for the period		75,103	299	75,402
Distribution for 2022		–50,297	–	–50,297
Warrant premium		903	–	903
		30,855
Total comprehensive income for the period Distribution for 2023		–75,445	–318 –	30,537 –75,445

Consolidated statement of cash ows

SEK thousands	Apr-Jun 2024	Apr-Jun 2023	Jan-Jun 2024	Jan-Jun 2023	Full year 2023
Before changes in working capital	9,501	12,091	36,120	31,179	94,361
Changes in working capital	111,643	65,495	–18,220	19,342	26,921
Investments in intangible non-current assets	–623	–679	–1,160	–679	–2,092
Investments in tangible non-current assets	–3,191	–1,983	– 7,149	–4,672	–9,049
Distribution	–75,445	–50,297	–75,445	–50,297	–50,297
Warrant premium	–	903	–	903	903
Amortization of loans	–	–	–	–30,000	–30,000
Amortization of lease liabilities	–4,883	–4,851	–10,201	–10,458	–22,157
Overdraft facility	–35,330	–22,401	60,663	35,897	–
Cash and cash equivalents at the beginning of the period	6,799	10,244	26,646	16,032	16,032
Translation diĤ erence in cash and cash equivalents	978	1,593	–1,805	2,868	2,024

Key gures

SEK thousands	Apr-Jun 2024	Apr-Jun 2023	Jan-Jun 2024	Jan-Jun 2023	Jul 2023- Jun 2024	Full year 2023
Gross proĥ t margin,% *	51.8	55.6	52.6	53.6	53.5	54.0
Operating margin,%	4.5	4.9	9.1	9.6	11.2	11.5
Proĥ t margin,%	4.3	3.3	7.7	8.7	10.5	11.2
Return on capital employed,%	26.6	21.1	26.6	21.1	26.6	25.2
Return on average equity,%	24.2	18.6	24.2	18.6	24.2	22.5
Proĥ t attributable to the Parent Company's
shareholders	6,522	4,189	27,733	28,974	74,730	75,969
Equity/assets ratio,% *	46.0	49.6	46.0	49.6	46.0	59.6
Equity per share, SEK	12.16	12.39	12.16	12.39	12.16	13.95
Investments in intangible non-current assets	623	679	1,160	679	3,252	2,092
Investments tangible non-current assets	3,191	1,983	7,149	4,672	11,526	9,049
Depreciation, amortization and impairment
losses for the period	–8,060	–8,182	–16,210	–16,805	–32,420	–33,015
Average number of employees	151	150	151	151	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 2023-	Full year
SEK thousands	2024	2023	2024	2023	Jun 2024	2023
External revenue	135,748	90,748	325,253	272,919	629,803	577,469
Internal revenue	1,652	16,702	3,037	18,598	7,762	23,323
External revenue	40,832	37,487	81,405	70,890	164,490	153,975
Internal revenue	98	9	160	1,148	166	1,154
External revenue	29,732	25,378	50, 682	46,252	109,144	104,713
Internal revenue	–	–	–	–	–	–
External revenue	14,208	13,692	22,561	23,058	46,015	46,512
Internal revenue	125,615	83,863	304,384	239,643	605,457	540,716
External revenue	271	2,565	1,701	6,971	3,851	9,122
Internal revenue	7,423	4,617	17,607	14,820	35,127	32,340
Less internal sales	–134,788	–105,191	–325,188	–274,208	–648,513	–597,533
Wholesale business	–2,921	980	25,180	26,114	59,884	60,818
Own e-commerce	6,198	4,244	11,792	11,162	29,440	28,809
Own stores	3,578	–1,037	137	–6,852	–19	–7,009
Distributors	2,451	1,681	4,425	2,947	11,326	9,848
Licensing	211	2,232	1,453	6,115	3,423	8,084
Interest income and similar income items	1,975	236	239	454	3,049	3,264
Interest expenses and similar income items	–2,419	–2,935	–7,199	–3,874	–9,448	–6,123

Quarterly data

SEK thousands	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022
Net sales	213,205	256,788	197,632	262,105	165,631	246,893	198,420	248,590
Gross proĥ t margin,%	51.8	53.3	56.8	52.6	55.6	52.2	52.1	48.2
Operating proĥ t/loss	9,517	33,470	20,172	40,893	8,100	31,385	7,770	30,597
Operating margin,%	4.5	13.0	10.2	15.6	4.9	12.7	3.9	12.3
Proĥ t/loss after net ĥ nancial items	9,073	26,954	21,073	40,552	5,401	30,665	6,389	30,545
Proĥ t margin,%	4.3	10.5	10.7	15.5	3.3	12.4	3.2	12.3
Earnings per share,
before dilution, SEK	0.26	0.84	0.59	1.27	0.17	0.99	0.21	0.88
Earnings per share, after dilution, SEK	0.26	0.84	0.59	1.27	0.17	0.99	0.21	0.88
Number of Björn Borg retail stores
at the end of the period	16	16	17	17	17	19	19	19
of which Group-owned
Björn Borg retail stores	15	15	16	16	16	18	18	18

Parent company income statement

		Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jul 2023-	Full year
SEK thousands	Note	2024	2023	2024	2023	Jun 2024	2023
Net sales		26,780	25,426	53,715	50,528	104,379	101,192
Other operating revenue		108	421	198	569	558	930
Goods for resale		–	–	–	–	–	–
Other external expenses	2	–19,526	–12,322	–36,620	–28,764	–66,925	–59,070
Personnel costs		–12,461	–10,779	–24,696	–21,342	–46,706	–43,352
Depreciation/amortization of intangible
and tangible non-current assets		–546	–739	–1,280	–1,382	–2,881	–2,963
Other operating expenses		–115	–91	–198	–140	–499	–441
Result from shares in subsidiaries		–	–	–	–	–	–
Net ĥ nancial items		–775	–4,357	–7,318	–7,099	–7,297	–7,079
Group contributions received/paid		–	–	–	–	95,000	95,000
Appropriations		–	–	–	–	720	720
Tax		–	–	–	–	–19,184	–19,184
Other comprehensive income		–	–	–	–	–	–

Parent company balance sheet

Note SEK thousands	Jun 30, 2024	Jun 30, 2023	Dec 31, 2023
Intangible assets	531	1,499	679
Tangible non-current assets	4,869	4,595	5,431
Shares in Group companies	177,868	371,813	177,868
Receivables from Group companies	363,426	435,372	448,586
Current receivables	11,217	6,079	3,968
Cash and cash equivalents	–	–	18,414
Equity	66,004	79,215	157,648
Untaxed reserves	896	1,616	896
Current liabilities credit institutions	60,663	35,897	–
Due to Group companies	406,386	681,401	465,254
Accounts payable	8,976	9,449	7,891
Other current liabilities	14,986	11,780	23,257

Parent company statement of changes in equity

SEK thousands	Jan-Jun 2024	Jan-Jun 2023	Full year 2023
Distribution	–75,445	–50,297	–50,297
Warrant premium	–	903	903
Merger results	–	–	5,050
Total comprehensive income for the period	–16,199	–7,630	65,753

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.

Jan-Jun 2024 The group, SEK thousands	Sweden	Finland	Netherlands	Germany	Other
Wholesale business	130,145	46,039	64,553	47,982	36,533
Own e-commerce	24,388	2,453	28,013	3,096	23,456
Own stores	11,820	7,967	26,267	–	4,608
Distributors	–	–	–	–	22,561
Licensing	591	–	1,109	–	–
Of which other operating revenue	3,513	17	6,702	1,217	160
Net sales	163,431	56,462	113,240	49,861	86,998

Jan-Jun 2023 The group, SEK thousands	Sweden	Finland	Netherlands	Germany	Other
Wholesale business	102,853	48,445	50,646	42,994	27,981
Own e-commerce	21,119	2,488	23,492	2,468	21,324
Own stores	12,611	8,224	19,137	–	6,279
Distributors	–	–	–	–	23,058
Licensing	773	–	6,198	–	–
Of which other operating revenue	734	3,042	786	2,693	312
Net sales	136,622	56,115	98,687	42,769	78,330

	The group		Parent Company
SEK thousands	Jan-Jun 2024	Jan-Jun 2023	Jan-Jun 2024	Jan-Jun2023
Cost of premises	6,735	5,302	3,752	3,344
Sales expenses	42,896	31,196	686	622
Marketing expenses	44,365	35,958	22,801	17,084
Administrative expenses	19,031	20,168	8,548	7,186
Other	¨4,885	3,613	833	528

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.

Equity, including those with non-controlling interests, divided by the average number of shares. To show the share price in relation to the company's book value.

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

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 less investments and cash and cash equivalents.

Net debt reĦ ects the company's total debt situation.

Interest-bearing 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 16, 2024

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 2024 will be issued at 07:30 on November 15, 2024.

The Year-end report 2024 will be issued at 07:30 on February 21, 2025.

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 2023 amounted to SEK 872.3 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 2024 collection.

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 16, 2024 at 07.30.