Clas Ohlson AB — Interim / Quarterly Report 2024

Sep 4, 2024

"Continued strong sales and earnings performance"

Kristofer Tonström, President and CEO

First quarter

• Net sales amounted to 2,623 MSEK (2,193), an increase of 20%, of which 10% relates to organic growth, 0% to currency effects and 10% to sales in Spares Group
• Online sales amounted to 494 MSEK (253). Excluding Spares Group, online sales amounted to 283 MSEK (253), an increase of 12%
• Operating profit amounted to 203 MSEK (-16*)
• Profit after tax totalled 146 MSEK (-26)
• Earnings per share was SEK 2.30 (-0.42)

Events after the end of the reporting period

• Net sales in August amounted to 968 MSEK (860), an increase of 13%, of which 7% relates to organic growth, -3% to currency effects and 9% to sales in Spares Group
• * Adjusted operating profit in Q1 previous year totalled 155 MSEK, excluding non-recurring items of 170 MSEK

Strong organic growth quarter

+10%

Operating result quarter

203 MSEK

Organic growth August

+7%

Key ratios

	3 Months		LTM	Full year
	May 2024	May 2023	Aug 2023	May 2023
MSEK (unless otherwise stated)	- Jul 2024	- Jul 2023	- Jul 2024	- Apr 2024
Net sales	2,623	2,193	10,662	10,232
Gross margin, %	37.5	38.2	39.0	39.2
EBITA	206	-16	945	724
Adjusted operating profit	203	155	969	921
Operating profit	203	-16	935	717
Operating margin, %	7.7	-0.7	8.8	7.0
Profit after tax	146	-26	681	509
Earnings per share before dilution, SEK	2.30	-0.42	10.75	8.03
Cash flow from operating activities	413	328	1,574	1,489
Free cashflow	247	184	458	395
Number of stores at period end	233	221	233	230
Number of Club Clas members (millions)	5.5	5.1	5.5	5.4
			31 Jul 2024	31 Jul 2023
Net debt/EBITDA ratio			0.8	1.3
Net debt/EBITDA ratio, excl IFRS 16			-0.4	-0.1
Equity/assets ratio, %			32.3	27.6

Continued strong sales and earnings performance

We have continued to deliver on the plan to renew the assortment in selected product niches, further strengthen the brand and drive high customer satisfaction during the first quarter of the financial year. With successes across the core assortment and continued high pace in assortment renewal, we reached new levels of sales and profitability in the first quarter of 2024/25. Net sales amounted to 2,623 MSEK. The organic sales growth was 10 per cent and operating profit improved to SEK 203 million, which results in an operating margin of 7.7 per cent. The ability to deliver favourable results in an uncertain market gives us additional energy in our efforts to build a stronger Clas Ohlson for the future.

Growth in all sales channels and in all markets

We opened three new stores in the first quarter and have four more store openings to look forward to in the second quarter, including our 100th store in Sweden. With a strong development in comparable units, +7 per cent in the first quarter, I am convinced that the investments we are making in the physical store is the right way forward. While new stores are a concrete way to increase availability and create growth, the rebuilds, relocations and closures we are doing are equally important tools to create a robust store network. In parallel with the development of the store network, we continue to optimise logistics, assortment and customer experience in our digital store, www.clasohlson.com. Online sales growth in the quarter was 12 per cent, excluding Spares, and the expectation remains that e-commerce will grow faster than total sales in the coming years. The online business is also further strengthened by the acquisition of Spares, where we saw good development during the past quarter.

Work to create a more sustainable business model continues

Our overall goal is to create sustainable and profitable growth. It is therefore gratifying that Clas Ohlson has reduced carbon dioxide emissions in Scope 1 and 2 by 38 per cent during 2023, according to data completed during the first quarter of the financial year. Sales of spare parts also continue to develop well. Helping customers repair what they already have is a clear example of how we want to create a more sustainable business model. During the quarter, Clas Ohlson's sustainability efforts were recognised by both the Financial Times, which named Clas Ohlson a leading company in sustainability, and the Norwegian Sustainability Barometer 2024, which once again ranked Clas Ohlson as the best company in the industry.

Focus on delivering on the growth strategy

To summarise, we have closed a good first quarter, but we are also humble about the fact that the results could never have been achieved without the major changes we have implemented in recent years to work faster, simpler and more cost-effectively. In the current uncertain environment, including the unrest in the Red Sea, it is of the utmost importance to maintain cost focus at all levels of the business in order to provide customers with attractive offers and defend our strong market position.

Kristofer Tonström

" With a strong development in comparable units, +7 per cent in the first quarter, I am convinced that the investments we are making in the physical store is the right way forward. "

I am convinced that our plan for sustainable and profitable growth and customer focus of our co-workers enable us to manage a challenging market. Customers will always need practical and affordable products for the home, and our task is to meet customer needs in the defined niches where we want to be the first choice. In doing so, we also create shareholder value over time.

We are now looking forward to an exciting and intense period with several important sales months. Organic sales growth in August was strong in all markets. Overall, organic sales increased by 7 per cent in August, driven by growth in all prioritised product niches, giving us good momentum going into the autumn.

Looking forward to seeing you in the stores and online!

Kristofer Tonström, President and CEO

Clas Ohlson in brief

Clas Ohlson's overall purpose is to make home fixing available, sustainable and enjoyable for everyone. Today, Clas Ohlson is one of the strongest retail brands in the Nordic region, with sales through more than 230 stores and e-commerce in Sweden,

Norway and Finland, approximately 5,000 co-workers and net sales of approximately 10 billion SEK. Clas Ohlson's offering is based on five prioritised product niches that together build Clas Ohlson's position as a home fixing destination:

Tidy up your home Light up your home Create a conscious home environment

Connect and enjoy your home

Fix your home

Spares Group, with sales channels Teknikdelar, Batteriexperten and Zand Parts, which primarily strengthens the customer offering within the Connect and enjoy your home niche, is part of the Clas Ohlson Group.

3BClas Ohlson as an investment

• Total average annual return of approx. 15% since IPO in 1999
• Strong corporate culture and over 100 years of profitability
• An efficient business model generates stable cash flow and a solid financial position
• Very high customer satisfaction driven by
• a relevant, deep and affordable assortment in carefully selected product niches
• knowledgeable, committed and service-oriented co-workers
• Large and growing customer base. The Club Clas loyalty programme has approximately 5.5 million members in the three sales markets
• A well-established omni-structure with synergies between physical stores and e-commerce creates unique availability
• One of the strongest retail brands in the Nordics and an industry leader in sustainability

4BStrategic focus areas

• 1. Relevant assortment all year round via prioritised product niches
• 1. A growing and profitable online business
• 1. Continue building a robust store network
• 1. Efficient customer communication
• 1. A competitive cost base
• 1. A more sustainable business model

Financial targets

Growth

Sales are to increase organically by 5 per cent per year

Profitability

The operating margin is to amount to between 7-9 per cent per year

Capital structure

Net debt in relation to EBITDA (excluding the effect of IFRS 16) to be below two (2) times

Dividend policy

The dividend is to comprise at least 50 per cent of earnings per share after tax, considering the company's financial position

Sustainability targets

Planet

Climate neutral and fully circular by 2045, climate neutral in own operations by 2026. Joined the Science Based Targets initiative.

People

A sustainable and long-term employer with engaged co-workers

Society

Contribute to a fair and prosperous society for future generations

Financial development

Net sales

First quarter (1 May 2024–31 July 2024)

Net sales amounted to 2,623 MSEK (2,193), an increase of 20 per cent, of which 10 per cent relates to organic growth*, 0 per cent to currency effects and 10 per cent to sales in Spares Group. Online sales amounted to 494 MSEK (253). Excluding Spares Group, online sales amounted to 283 MSEK (253), an increase of 12 per cent. At the end of the quarter, the total number of stores was 233, which was an increase of a net 12 stores compared with the year-earlier period (a net decrease of 4 stores in the previous year). For more information on the store network, see page 22.

^* Split between increase in comparable units 7 per cent and change in store network 3 per cent.

+10 %

Distribution of net sales

		3 Months
			Percentage change
MSEK	May 2024 - Jul 2024	May 2023 - Jul 2023	SEK	organic
Sweden	1,142	1,014	13	13
Norway	1,018	934	9	10
Finland	253	246	3	4
Spares	210	0	–	–
Total*	2,623	2,193	20	10
Of which online sales**	494	253	95	12

^*Net sales excluding Spares increased by 10% to 2,413 MSEK.

^**Online sales excluding Spares increased by 12% to 283 MSEK.

Result

First quarter

Operating profit amounted to 203 MSEK (-16). Adjusted operating profit during the yearearlier period totalled 155 MSEK, excluding non-recurring items of 170 MSEK, see Note 4. Operating margin was 7.7 per cent (-0.7).

Operating margin quarter

+7.7%

Gross margin decreased by 0.7 percentage points to 37.5 per cent (38.2). Compared with the year-earlier period, gross margin has been negatively affected by currency hedging

(NOK)* and a weaker Swedish krona in relation to purchasing currency (USD). In addition, the acquired Spares Group has a structurally lower gross margin. These were largely offset by improved product and price mix and reduced sourcing costs.

The share of selling expenses declined by 1.9 percentage points to 27.8 per cent (29.7). The share declined mainly as a result of higher sales in comparable units. Administrative expenses amounted to -51 MSEK (-46). Depreciation, amortisation and write-down for the period amounted to -187 MSEK (-335).

Net financial income amounted to -15.6 MSEK (-16.1). Tax for the period amounted to -41.3 MSEK (5.2).

Profit for the period amounted to 145.8 MSEK (-26.4), where previous year was affected by non-recurring items of 170 MSEK. Earnings per share amounted to SEK 2.30 (-0.42).

* Operating profit was affected by the outcome of currency hedges during the quarter, see Note 6 for more information.

Operating profit and operating margin Earnings per share

Balance sheet and cash flow

Cash flow from operating activities during the quarter totalled 413 MSEK (328). Free cash flow, i.e. cash flow after investing activities including amortisation of lease liabilities, totalled 247 MSEK (184). Cash flow for the period, after investing and financing activities, was 247 MSEK (-37).

At the end of the period, the inventory value was 2,606 MSEK (2,221). The increase consists largely of earlier seasonal restocking due to the unrest in the Red Sea, inventory in Spares Group, more new products and new stores. The Group's net debt, meaning interestbearing liabilities less cash and cash equivalents, amounted to 1,324 MSEK (1,640). Excluding the effect of IFRS 16, the Group's net cash position was 417 MSEK (85). Excluding the effect of IFRS 16, net debt in relation to EBITDA was -0.4 times (-0.1), which is in accordance with the company's financial framework. Credits granted and loan commitments amounted to 1 110 MSEK, of which 0 MSEK had been utilised. The company's financial position remains strong. The equity/assets ratio was 32 per cent (28).

Investments

Investments during the quarter amounted to 33 MSEK (14). Of these, 26 MSEK (5) relates to investments in new or refurbished stores. Investments in IT systems during the period totalled 4 MSEK (0).

Events after the end of the reporting period

Sales in August

Net sales amounted to 968 MSEK (860), and increase of 13 per cent, of which 7 per cent relates to organic growth*, -3 per cent to currency effects and 9 per cent to sales in Spares Group. Compared with the same month of the preceding year, the store network increased by a net of 11 stores (reduction of 3 stores in the previous year). The total number of stores at the end of the period was 232. For more information about the store network, refer to page 22.

Total net sales for the period May-August 2024 amounted to 3,592 MSEK (3,053), an increase of 18 per cent compared with the corresponding period in the previous year, of which 10 per cent relates to organic growth*, -1 per cent to currency effects and 9 per cent to sales in Spares Group.

* Split between increase in comparable units 4 per cent and change in store network 3 per cent for the month of August. Split for the period May-August 2024, 6 per cent and 4 per cent respectively.

				Percentage change			Percentage change
MSEK	Aug 2024	Aug 2023	SEK	organic	May-Aug 2024	May-Aug 2023	SEK	organic
Sweden	407	381	7	7	1,549	1,394	11	11
Norway	384	379	1	8	1,402	1,312	7	9
Finland	104	101	4	7	358	347	3	5
Spares	73	–	–	–	283	–	–	–
Total*	968	860	13	7	3,592	3,053	18	10

^*Net sales excluding Spares increased by 4% to 895 MSEK in August and by 8% to 3,308 MSEK for the period May-Aug 2024

Other information

Parent company

Parent Company sales for the period amounted to 1,983 MSEK (1,853) and profit after financial items amounted to 141 MSEK (-28). Investments during the period amounted to 22 MSEK (8).

Employees

The number of employees in the Group was approximately 5,100. Recalculated to average full-time equivalents (FTEs) in the quarter, this corresponds to an average of 3,232 (3,142). The difference compared to the previous year is mainly related to the acquired Spares Group and new stores.

Seasonal fluctuations

Clas Ohlson's market and operations are influenced by consumer purchasing behaviour. The company's product range is particularly well suited to Christmas preparations and Christmas shopping, which means that the third quarter (November-January) is generally the strongest quarter of the financial year. This is followed by the second and first quarters and, finally, the fourth quarter, which is the weakest in terms of sales and profit.

Audit

This report is unaudited.

Clas Ohlson AB (publ)

Insjön, 4 September 2024

Kristofer Tonström

President and CEO

Group income statement

		3 Months		LTM	Full year
		May 2024	May 2023	Aug 2023	May 2023
MSEK	Note	- Jul 2024	- Jul 2023	- Jul 2024	- Apr 2024
Net sales	3	2,623.2	2,193.1	10,662.0	10,231.9
Cost of goods sold		-1,639.0	-1,356.3	-6,498.6	-6,215.9
Gross profit		984.2	836.8	4,163.4	4,016.0
Selling expenses		-730.4	-652.1	-2,994.5	-2,916.1
Administrative expenses		-51.1	-46.0	-193.3	-188.2
Other operating income		0.1	4.3	14.1	18.3
Other operating expenses		-0.0	-158.6	-54.7	-213.3
Operating profit	4	202.8	-15.5	935.0	716.8
Financial income		2.2	0.5	7.7	6.0
Financial expenses		-17.8	-16.6	-71.2	-69.9
Profit after financial items		187.1	-31.6	871.5	652.8
Income tax		-41.3	5.2	-190.7	-144.2
Profit for the period		145.8	-26.4	680.9	508.6
Profit for the period attributable to:
Parent Company shareholders		145.8	-26.4	680.9	508.6
Non-controlling interests		0.0	0.0	0.0	0.0

Group comprehensive income statement

		3 Months		LTM	Full year
		May 2024	May 2023	Aug 2023	May 2023
MSEK	Note	- Jul 2024	- Jul 2023	- Jul 2024	- Apr 2024
Profit for the period		145.8	-26.4	680.9	508.6
Other comprehensive income, net of tax:
Items that later can be reversed back to the income statement:
Exchange rate differences		-6.5	21.7	-14.2	13.9
Cash flow hedging	6	-0.6	-45.9	25.3	-20.1
Total		-7.0	-24.2	11.1	-6.1
Items that later can not be reversed back to the income statement:
Change in fair value of financial assets	6	-4.0	0.0	-7.2	-3.1
Total		-4.0	0.0	-7.2	-3.1
Total other comprehensive income, net of tax		-11.1	-24.2	3.9	-9.3
Total comprehensive income for the period		134.8	-50.6	684.8	499.3
Comprehensive income attributable to:
Parent Company shareholders		134.8	-50.6	684.8	499.3
Non-controlling interests		0.0	0.0	0.0	0.0

CLAS OHLSON INTERIM REPORT Q1 2024/25 8

Group balance sheet

	31 Jul	31 Jul	30 Apr
MSEK Note	2024	2023	2024
Assets
Goodwill 5	400.4	-	400.4
Trademarks	30.8	-	32.6
Customer relationships	21.0	-	22.6
IT- and software costs	82.0	138.0	89.7
Land and buildings	216.4	241.5	223.0
Equipment, tools, fixtures and fittings	417.3	409.5	417.7
Right-of use assets	1,685.5	1,644.7	1,784.1
Securities held as fixed assets 6	2.3	9.5	6.3
Deferred tax assets	72.1	74.5	73.1
Other non-current receivables	0.8	12.3	1.9
Total non-current assets	2,928.5	2,529.9	3,051.4
Inventories	2,606.0	2,221.3	2,448.3
Accounts receivable	40.3	41.5	69.2
Tax assets	10.7	31.2	11.2
Other receivables	19.2	14.6	23.1
Prepaid expenses and accrued income 6	126.5	80.9	76.7
Cash and cash equivalents	417.4	108.9	170.7
Total current assets	3,220.2	2,498.4	2,799.2
Total assets	6,148.7	5,028.2	5,850.6
Equity and liabilities
Share capital	82.0	82.0	82.0
Other contributed capital	90.4	90.4	90.4
Other reserves	-53.9	-63.4	-46.9
Profit brought forward including profit for the year	1,868.2	1,279.4	1,723.8
Equity attributable to non-controlling interests	0.0	0.0	0.0
Total equity	1,986.7	1,388.4	1,849.3
Long-term lease liabilities, interest bearing	1,199.5	1,182.5	1,269.7
Deferred tax liabilities	160.4	164.0	161.2
Other non-current liabilities	40.2	0.0	40.2
Total non-current liabilities	1,400.0	1,346.5	1,471.1
Current lease liabilities, interest bearing	542.1	542.5	568.9
Accounts payable	1,137.9	757.0	937.7
Tax liability	59.6	44.2	51.5
Other current liabilities	353.9	324.6	234.9
Borrowings	0.0	23.5	0.0
Accrued expenses and prepaid income	594.6 6	518.4	663.3
Contract liabilities	73.9	83.1	73.9
Total current liabilities	2,762.0	2,293.3	2,530.2
Total equity and liabilities	6,148.7	5,028.2	5,850.6

Group condensed cash flow statement

		3 Months		LTM	Full year
MSEK	Note	May 2024 - Jul 2024	May 2023 - Jul 2023	Aug 2023 - Jul 2024	May 2023 - Apr 2024
Operating profit		202.8	-15.5	935.0	716.8
Adjustment for items not included in cash flow	4	190.1	325.1	746.1	881.0
Interest received		2.2	0.5	7.7	6.0
Interest paid		-17.8	-16.6	-71.2	-69.9
Tax paid		-31.2	-43.8	-169.9	-182.5
Cash flow from operating activities before changes in working capital		346.1	249.7	1,447.8	1,351.4
Change in working capital		67.1	78.6	125.8	137.3
Cash flow from operating activities		413.2	328.3	1,573.6	1,488.6
Investments in intangible assets		-3.5	0,0	-6.1	-2.6
Investments in tangible assets		-29.6	-14.1	-132.0	-116.4
Acquisition of subsidiaries	5	0.0	0.0	-436.2	-436.2
Change in current investments		0.1	0,0	1.5	1.4
Cash flow from investing activities		-33.1	-14.1	-572.9	-553.8
Change in current liabilities, interest-bearing		0.0	-220.9	-23.5	-244.4
Repayment of lease liabilities		-132.7	-130.1	-542.7	-540.1
Change in long-term debt		0,0	0.0	-29.7	-29.7
Dividend to shareholders		0.0	0.0	-95.0	-95.0
Cash flow from financing activities		-132.7	-351.0	-690.9	-909.2
Cash flow for the period		247.4	-36.8	309.8	25.6
Cash and cash equivalents at the start of the period		170.7	143.1	108.9	143.1
Exchange rate differences in cash and cash equivalents		-0.7	2.6	-1.3	2.1
Cash and cash equivalents at the end of the period		417.4	108.9	417.4	170.7

Group statement of changes in equity

MSEK	May 2024 - Jul 2024	May 2023 - Jul 2023
Equity brought forward	1,849.3	1,437.4
Paid-in option premiums:
Value of employee services	2.6	1.7
Total comprehensive income	134.8	-50.6
Equity carried forward	1,986.7	1,388.4
Of which equity attributable to non-controlling interests	0.0	0,0

Parent Company income statement and comprehensive income

		3 Months	LTM	Full year
	May 2024 - Jul 2024	May 2023 - Jul 2023	Aug 2023 - Jul 2024	May 2023 - Apr 2024
MSEK Net sales	1,982.5	1,852.6	8,327.5	8,197.7
Cost of goods sold	-1,437.5	-1,341.3	-6,050.6	-5,954.4
Gross profit	545.0	511.3	2,276.9	2,243.3
Selling expenses	-362.5	-342.6	-1,479.7	-1,459.8
Administrative expenses	-40.3	-39.5	-145.1	-144.3
Other operating income	0.0	4.3	14.0	18.3
Other operating expenses	-0.0	-158.6	-29.4	-188.0
Operating profit	142.2	-25.2	636.7	469.4
Results from participation in group companies	0.0	0.2	128.5	128.7
Financial income	2.8	0.3	10.0	7.6
Financial expenses	-3.8	-3.3	-22.9	-22.5
Profit after financial items	141.1	-27.9	752.2	583.2
Appropriations	0.0	0.0	69.1	69.1
Profit before tax	141.1	-27.9	821.3	652.3
Income tax	-30.7	5.8	-147.7	-111.1
Profit for the period	110.4	-22.1	673.6	541.1
Parent Company Comprehensive Income Statement
Items that later can be reversed back to the income statement:
Change in fair value of financial assets	-4.0	0.0	-7.2	-3.1
Other comprehensive income, net of tax	-4.0	0,0	-7.1	-3.1
Total comprehensive income	106.4	-22.1	666.5	538.0

Parent Company condensed balance sheet

	31 Jul	31 Jul	30 Apr
MSEK	2024	2023	2024
Assets
Intangible assets	77.5	134.0	85.5
Tangible assets	442.8	468.5	445.0
Financial assets	533.5	58.9	537.1
Inventories	1,846.7	1,591.5	1,663.7
Current receivables	229.0	290.3	335.2
Cash and cash equivalents	344.5	30.2	105.3
Total assets	3,474.0	2,573.5	3,171.8
Equity and liabilities
Equity	1,083.9	504.1	974.9
Untaxed reserves	708.4	805.5	708.4
Long-term liabilities	40.1	0.0	40.1
Current liabilities	1,641.7	1,264.0	1,448.4
Total equity and liabilities	3,474.0	2,573.5	3,171.8

Key ratios

	3 Months		LTM Full year
	May 2024 - Jul 2024	May 2023 - Jul 2023	Aug 2023 - Jul 2024	May 2023 - Apr 2024
Sales growth, %	19.6	7.3	16.2	13.4
Organic growth, %	10.4	7.9	11.4	10.9
Gross margin, %	37.5	38.2	39.0	39.2
Operating margin, %	7.7	-0.7	8.8	7.0
EBITA, MSEK	206.2	-15.5	945.4	723.6
Return on capital employed, %	–	–	26.3	20.9
Return on equity, %	–	–	39.3	31.5
Equity/assets ratio, %	32.3	27.6	32.3	31.6
Equity/assets ratio, excl IFRS 16, %	46.2	43.8	46.2	47.4
Net debt/EBITDA	–	–	0.8	1.0
Net debt/EBITDA, excl IFRS 16	–	–	-0.4	-0.2
Average number of employees	3,232	3,142	3,066	3,044
Number of Club Clas members (millions)	5.5	5.1	5.5	5.4
Share of Online sales, %	18.8	11.5	16.8	15.2
Store network
Share of sales Sweden, %	43.5	46.2	43.8	45.5
Share of sales Norway, %	38.8	42.6	40.2	43.1
Share of sales Finland, %	9.7	11.2	10.7	11.4
Share of sales Spares, %	8.0	-	5.2	-
Sales per sq.m in stores, SEK thousand	8.6	8.0	36.4	36.0
Number of stores at period end	233	221	233	230
Data per share
Number of shares before dilution	63,357,289	63,357,273	63,357,289	63,357,287
Number of shares after dilution	63,480,295	63,357,273	63,480,295	63,472,584
Number of shares at period end	63,357,289	63,357,289	63,357,289	63,357,289
Earnings per share before dilution, SEK	2.30	-0.42	10.75	8.03
Earnings per share after dilution, SEK	2.30	-0.42	10.73	8.01
Comprehensive income per share, SEK	2.13	-0.80	10.81	7.88
Cash flow per share*, SEK	6.52	5.18	24.84	23.50
Equity per share, SEK	31.36	21.91	31.36	29.19

^*From operating activities

The quarterly overview is available on about.clasohlson.com/en/investors/financial-data/

Notes to consolidated financial statements

Note 1 Accounting policies

Clas Ohlson applies International Financial Reporting Standards (IFRS) as well as interpretations from the IFRS Interpretations Committee (IFRIC) adopted by the EU. This interim report has been prepared in accordance with the Swedish Annual Accounts Act, IAS 34 Interim Financial Reporting, and RFR 1 Supplementary Accounting Rules for Groups. Disclosures according to IAS 34 Interim Financial Reporting are provided both in notes and elsewhere in the interim report. The parent company's reporting is prepared according to the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2, accounting for legal entities. The same accounting principles as for the group are applied except in cases specified under the section "Parent Company's Accounting Principles" in the Annual and Sustainability Report for 2023/24.

For the group's financial statements, the same accounting principles and calculation methods are applied as in the Annual and Sustainability Report for 2023/24. No new or revised IFRS standards and interpretations that apply from May 1, 2024, have had any significant effect on the group's financial reports.

Note 2 Risks and uncertainties

Clas Ohlson's operations involve exposure to risks that, to varying degrees, can negatively impact the group. These risks are categorized as strategic, operational, financial, and sustainability risks. The risk landscape can change rapidly, and work is continuously being done to update risk assessments and ensure effective management. Through proactive risk management, risks can be transformed into opportunities and contribute value to the business.

For a detailed description of the group's significant risk and uncertainty factors, please refer to the section 'Risks and Uncertainties' in the Annual and Sustainability Report for 2023/24, pages 20-25. During the quarter, no significant changes have occurred in the group's risk profile.

Note 3 Segment reporting and distribution of sales

The Group's operations are divided into segments based on how the Group's senior executives monitor business performance and allocate resources. As of financial year 2023/24, Clas Ohlson Group comprises one retail segment. The categorization reflects the Group's organization and shared processes such as purchasing, logistics, sales, etc. Monthly internal reporting focuses on the Group as a whole, with additional geographic sales information. The performance measures presented represent the key performance measures by which the operations are evaluated.

	3 Months
	Segment
	Retail
	May 2024	May 2023
MSEK	- Jul 2024	- Jul 2023
Total sales	2,623.2	2,193.1
Net sales by geographic markets:
Sweden	1,142.0	1,013.8
Norway	1,018.0	933.6
Finland	253.2	245.7
Spares	210.1	-
Net sales by stores and onlie:
Stores	2,129.6	1,940.0
Online	493.6	253.1
Depreciation, amortisation and write-down: intangible and tangible assets	-49.0	-203.7
Depreciation: right-of use assets	-138.3	-131.6
Operating profit	202.8	-15.5
Net financial items	-15.6	-16.1
Profit after financial items	187.1	-31.6
Tax	-41.3	5.2
Profit for the period	145.8	-26.4
Assets
Non-current assets	2,928.5	2,529.9
Current assets	3,220.2	2,498.4
Investments
Intangible assets	-3.5	-
Tangible assets	-29.6	-14.1

Note 4 Non-recurring items

The following items related to acquisition costs, write-downs, and headcount reductions have affected the operating profit during the relevant quarters. Since these are non-recurring items, they have been added back and reported in the adjusted operating profit.

	2024/25		2023/24
MSEK	Q1	Q4	Q3	Q2	Q1
Acquisition-related costs	0.0	0.0	-0.7	-20.6	0.0
Write-down of IT-systems	0.0	0.0	0.0	0.0	-152.2
Headcount reductions
Cost of goods sold	0.0	0.0	-0.8	-5.6	-10.1
Selling expenses	0.0	0.0	-1.2	-4.1	-6.8
Administrative expenses	0.0	0.0	-0.1	-1.1	-1.2
Total	0.0	0.0	-2.8	-31.4	-170.3

Note 5 Business acquisitions

No acquisitions were made during the first quarter. In the previous financial year, Spares Europe AB and its subsidiaries were acquired.

The estimated purchase consideration related to the acquisition of Spares Europe AB and its subsidiaries is still evaluated to be SEK 0, as detailed in Note 6. This evaluation is based on the outcome of specific growth and profitability targets over a twelve-month period ending no later than July 31, 2024.

At the acquisition date, 91.4% of the shares in Spares Europe AB were acquired. A call and put option for the remaining shares has been agreed upon, which can be exercised by either Clas Ohlson or other shareholders. Consequently, a liability to the other shareholders amounting to 40.1 MSEK has been recognized, as detailed in Note 6.

Note 6 Financial Instruments

The Group's financial assets and liabilities measured at fair value consist of equity holdings, derivatives, and hedging instruments. The reported values are considered to be a reasonable approximation of the assets' and liabilities' fair values.

The valuation at fair value is determined based on the valuation levels in IFRS 13: Level 1 (quoted market prices), Level 2 (observable data), and Level 3 (unobservable inputs).

Financial assets and liabilities valued at fair value

MSEK	Level	31 Jul 2024	31 Jul 2023
Financial assets
Shares Mathem	3	2.3	9.5
Derivatives and hedging instruments	2	12.9	3.5
Financial liabilities
Call and put option*	3	40.1	0.0
Purchase consideration*	3	0.0	0.0
Derivatives and hedging instruments	2	1.6	24.1
*The acqusition of the Spares Group

Derivatives and hedging instruments

Derivatives and hedging instruments consist entirely of forward contracts used for hedging purposes. All derivatives are measured at fair value, determined by using the exchange rate for currency forwards on the balance sheet date (Level 2). Forward contracts are continuously entered into with a maturity of three to nine months. The company hedges half of the expected flow in each currency on an ongoing basis. Forward contracts with negative market values are reported under current liabilities, while forward contracts with positive market values are reported under current assets.

As of the balance-sheet date, outstanding cash flow hedges existed as shown in to the following table per currency pair.

Forward contracts

Sell/buy	31 Jul 2024	31 Jul 2023
NOK/SEK	1.0	-12.3
NOK/USD	10.2	-8.3
Total	11.2	-20.6
The amount for forward contracts NOK/USD are allocated as follows:
NOK/SEK	1.0	-13.2
SEK/USD	9.2	4.9
Total	10.2	-8.3

Currency hedging results

Spot exchange rates for key currencies averaged 0.99 for NOK and 10.63 for USD compared with 1.00 and 10.57 respectively in the yearearlier period. Currency hedging that fell due during the quarter has resulted in a cost of -4 MSEK in earnings (17). Currency hedging in USD resulted in a decreased inventory value by -4 MSEK (1).

Alternative performance measures

Below is a reconciliation of alternative performance measures (APMs), which are not defined in accordance with IFRS, to the closest reconcilable items in the financial statements. Clas Ohlson believes that the APMs are relevant to the users of the financial statements as a supplement to assess Clas Ohlson's performance. Management uses these APMs to evaluate current operations compared with previous results, for internal planning and forecasting, and for calculating certain performance-related remuneration. The presentation of APMs has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial measures prepared in accordance with IFRS. The APMs presented in this quarterly report may differ from similarly titled measures used by other companies.

Key ratio	Definition	Purpose
Return on equity	Net profit for the period expressed as a percentage of average equity. Average equity is calculated as the total equity for the most recent 12 months divided by 12.	Return on equity is a measure of profitability in relation to the book value of equity. Return on equity is also a measure of how investments are used to generate increased income.
Return on capital employed	Operating profit plus financial income expressed as a percentage of average capital employed. Average capital employed is calculated as the total capital employed for the most recent 12 months divided by 12.	Return on capital employed is a measure of profitability after taking into account the amount of capital used. A higher return on capital employed indicates that capital is being used more efficiently.
Gross margin	Gross profit divided by net sales for the period.	The gross margin is affected by a number of factors, such as product mix, price developments and cost changes.
Gross profit	Gross profit is calculated as the total of net sales less cost of goods sold.	Gross profit shows the difference between net sales and cost of goods sold. Gross profit is affected by a number of factors, such as product mix, price developments and cost changes.
Equity per share	Equity divided by the number of shares outstanding at the end of the period.	Equity per share measures a company's net worth per share and determines whether a company is increasing shareholder wealth over time.
EBITDA	Operating profit/loss before interest, tax, depreciation and amortisation.	EBITDA shows profitability before depreciation, amortisation, interest and income tax.
EBITDA excl IFRS 16	Operating profit/loss before interest, tax, impairment, depreciation and amortisation excluding effect on operating expenses according to IFRS 16.	Creates comparability in analyses that include years before IFRS 16 was applied.
EBITA	Operating profit before interest, tax, impairment and amortisation of acquisition related intangible assets.	EBITA shows profitability before amortisation and impairment of acquisition-related intangible assets, interest and income tax.
Free cash flow	Cash flow after investing activities including amortisation of lease liabilities.	Free cash flow provides a measure of the current net flow from operating activities, to be used for future investments, dividends, etc.
Sales growth	Net sales in relation to net sales during the year-earlier period.	The change in net sales reflects the company's realised sales growth over time.
Online sales growth	Online net sales in relation to online net sales during the year-earlier period.	The change in online net sales reflects the company's realised online net sales growth over time.

Key ratio	Definition	Purpose
Online sales growth excl Spares	Online net sales in relation to online net sales during the year-earlier period, excluding the acquired Spares Group.	The change in online net sales reflects the company's realised online net sales growth over time excluding the acquired Spares Group.
Adjusted operating profit	Operating profit adjusted for items affecting comparability.	Adjusted operating profit aims to show the performance of the business adjusted for items affecting comparability.
Cash flow from operating activities per share	Cash flow from operating activities divided by the average number of shares before dilution.	Cash flow from operating activities per share measures the cash flow generated by the company per share before capital expenditure and cash flows attributable to the company's financing.
Net debt	Interest-bearing liabilities less cash and cash equivalents.	Net debt shows the company's indebtedness over time.
Net debt excl IFRS 16	Interest-bearing liabilities excluding interest bearing lease liabilities less cash and cash equivalents.	Creates comparability in analyses that include years before IFRS 16 was applied.
Organic growth	Sales growth in local currencies, excluding acquisitions.	Creates comparability of sales between periods.
Working capital	The total of current assets, minus cash and cash equivalents (inventories and current receivables), less current non-interest bearing liabilities.	Working capital is used to measure the firm's ability to meet short-term capital requirements.
Operating margin	Operating profit divided by net sales for the period.	The operating margin shows the operating profit as a percentage of net sales and indicates the operational profitability.
Operating margin excl IFRS 16	Operating profit divided by net sales for the period excluding effects on operating expenses according to IFRS 16.	Creates comparability in analyses that include years before IFRS 16 was applied.
Operating profit excl IFRS 16	Operating profit comprises profit before financial items and tax excluding effects on operating expenses according to IFRS 16.	Creates comparability in analyses that include years before IFRS 16 was applied.
Equity/assets ratio	Equity at the end of the period divided by the balance-sheet total (total assets).	A high equity/assets ratio provides the financial room for manoeuvre and independence needed to conduct business and manage fluctuations in working capital, as well as the ability to take advantage of business opportunities.
Equity/assets ratio excl IFRS 16	Equity at the end of the period divided by the balance-sheet total (total assets) excluding effects relating to equity and interest bearing lease assets according to IFRS 16.	Creates comparability in analyses that include years before IFRS 16 was applied.
Capital employed	Balance-sheet total (total assets) less current liabilities and non-current liabilities, non-interest-bearing liabilities.	Capital employed measures a company's ability to meet the needs of its business beyond cash and cash equivalents.
Total comprehensive income	Total comprehensive income divided by average number of shares before dilution.	Total comprehensive income per share shows the total comprehensive income in relation to the average number of shares before dilution.
Earnings per share (before and after dilution)	Profit for the period divided by the number of shares (before and after dilution).	Defined in accordance with IFRS.

		3 Months		Full year
	May 2024	May 2023	Aug 2023	May 2023
Return on equity, %	- Jul 2024	- Jul 2023	- Jul 2024	- Apr 2024
Net profit for the period, MSEK	–	–	680.9	508.6
Average equity, MSEK	–	–	1,733.0	1,612.4
Return on equity	–	–	39.3%	31.5%
Return on capital employed, %
Operating profit, MSEK	–	–	935.0	716.8
Interest income, MSEK	–	–	7.7	6.0
Average capital employed, MSEK	–	–	3,581.9	3,464.2
Return on capital employed	–	–	26.3%	20.9%
Gross margin, %
Gross profit, MSEK	984.2	836.8	4,163.4	4,016.0
Net sales, MSEK	2,623.2	2,193.1	10,662.0	10,231.9
Gross margin	37.5%	38.2%	39.0%	39.2%
Gross profit, MSEK
Net sales	2,623.2	2,193.1	10,662.0	10,231.9
Cost of goods sold	-1,639.0	-1,356.3	-6,498.6	-6,215.9
Gross profit	984.2	836.8	4,163.4	4,016.0
Equity per share, SEK
Total equity, MSEK	1,986.7	1,388.4	1,986.7	1,849.3
Number of shares at end of period (millions of share)	63.36	63.36	63.36	63.36
Equity per share	31.36	21.91	31.36	29.19
EBITDA, MSEK
Operating profit	202.8	-15.5	935.0	716.8
Depreciation, amortisation and write-down	187.3	335.3	743.9	892.0
EBITDA	390.0	319.8	1,679.0	1,608.8
EBITDA excl IFRS 16, MSEK
Operating profit excl IFRS 16	185.6	-33.1	864.8	646.2
Depreciation, amortisation and write-down excl IFRS 16	49.0	203.7	209.1	363.8
EBITDA excl IFRS 16	234.6	170.6	1,074.0	1,010.0
EBITA, MSEK
Operating profit	202.8	-15.5	935.0	716.8
Amortisation on acquisition-related intangible assets	3.5	-	10.3	6.9
EBITA	206.2	-15.5	945.4	723.6
Free cash flow, MSEK
Cash flow from operating activities	413.2	328.3	1,573.6	1,488.6
Cash flow from investing activities	-33.1	-14.1	-572.9	-553.8
Lease payments Free cash flow	-132.7 247.4	-130.1 184.1	-542.7 458.0	-540.1 394.7
Sales growth, %
Sales actual period, MSEK	2,623.2	2,193.1	10,662.0	10,231.9
Sales previous period, MSEK	2,193.1	2,043.6	9,173.9	9,024.3
Sales growth	19.6%	7.3%	16.2%	13.4%

		3 Months		Full year
Sales growth online, %	May 2024 - Jul 2024	May 2023 - Jul 2023	Aug 2023 - Jul 2024	May 2023 - Apr 2024
Sales online actual period, MSEK	493.6	253.1	1,793.7	1,553.2
Sales online previous period, MSEK	253.1	232.0	1,075.3	1,054.2
Sales growth online	95.0%	9.1%	66.8%	47.3%
Sales growth online excl Spares, %
Sales online excl Spare actual period, MSEK	283.5	253.1	1,236.3	1,206.0
Sales online excl Spare previous period, MSEK	253.1	232.0	1,075.3	1,054.2
Sales growth online excl Spare	12.0%	9.1%	15.0%	14.4%
Adjusted operating profit, MSEK
Operating profit	202.8	-15.5	935.0	716.8
Non-recurring items	-	170.3	34.3	204.6
Adjusted operating profit	202.8	154.8	969.3	921.4
Cash flow from operating activities per share, SEK Cash flow from operating activities, MSEK	413.2	328.3	1,573.6	1,488.6
Number of shares before the dilution (millions of share) Cash flow from operating activities per share	63.36 6.52	63.36 5.18	63.36 24.84	63.36 23.50
Net debt, MSEK
Interest bearing liabilities	-	-	1,741.6	1,838.6
Cash and cash equivalents	-	-	417.4	170.7
Total Net debt	-	-	1,324.2	1,667.9
Net debt excl IFRS 16, MSEK
Interest bearing liabilities excl lease liabilities	-	-	0,0	0,0
Cash and cash equivalents	-	-	417.4	170.7
Total Net debt excl IFRS 16	-	-	-417.4	-170.7
Net debt/EBITDA ratio
Net debt, MSEK	-	-	1,324.2	1,667.9
EBITDA, MSEK	-	-	1,679.0	1,608.8
Total Net debt/EBITDA	-	-	0.8	1.0
*Q1 2023/24 see previous year quarterly report
Net debt/EBITDA excl IFRS 16 ratio
Net debt excl IFRS 16, MSEK	-	-	417.4	170.7
EBITDA excl IFRS 16, MSEK	-	-	1,074.0	1,010.0
Total Net debt/EBITDA excl IFRS 16 *Q1 2023/24 see previous year quarterly report	-	-	-0.4	-0.2
Organic growth, %
Net sales (recalculated to the previous year's exchange rate)	2,632.1	2,204.6	10,780.5	10,353.0
Acquired net sales, MSEK	210.1	-	557.4	347.2
Net sales previous period, MSEK Organic growth	2,193.1 10.4%	2,043.6 7.9%	9,173.9 11.4%	9,024.3 10.9%
Working capital, MSEK
Total current assets	3,220.2	2,498.4	3,220.2	2,799.2
-Cash and cash equivalents	-417.4	-108.9	-417.4	-170.7
-Current non-interest bearing liabilities	-2,219.9	-1,727.3	-2,219.9	-1,961.3
Working capital	582.9	662.2	582.9	667.2

	3 Months		LTM	Full year
	May 2024	May 2023	Aug 2023	May 2023
Operating margin, %	- Jul 2024	- Jul 2023	- Jul 2024	- Apr 2024
Operating profit, MSEK	202.8	-15.5	935.0	716.8
Net sales, MSEK	2,623.2	2,193.1	10,662.0	10,231.9
Operating margin	7.7%	-0.7%	8.8%	7.0%
Operating profit excl IFRS 16, MSEK
Operating profit	202.8	-15.5	935.0	716.8
IFRS 16-effect	-17.2	-17.6	-70.2	-70.6
Operating profit excl IFRS 16	185.6	-33.1	864.8	646.2
Equity/assets ratio, %
Total equity, MSEK	1,986.7	1,388.4	1,986.7	1,849.3
Total assets, MSEK	6,148.7	5,028.2	6,148.7	5,850.6
Equity/Assets ratio	32.3%	27.6%	32.3%	31.6%
Equity/assets ratio excl IFRS 16, %
Total equity excl IFRS 16, MSEK	2,081.6	1,493.5	2,081.6	1,945.6
Total assets excl IFRS 16, MSEK	4,502.0	3,408.3	4,502.0	4,108.2
Equity/assets ratio excl IFRS 16	46.2%	43.8%	46.2%	47.4%
Capital employed, MSEK
Total assets	6,148.7	5,028.2	6,148.7	5,850.6
Long-term non-interest bearing liabilities	-200.5	-164.0	-200.5	-201.4
Current non-interest bearing liabilities	-2,219.9	-1,727.3	-2,219.9	-1,961.3
Capital employed	3,728.3	3,136.9	3,728.3	3,687.9
Total comprehensive income per share, SEK
Total comprehensive income for the period, MSEK	134.8	-50.6	684.8	499.3
Average number of shares before dilution (millions of share)	63.36	63.36	63.36	63.36
Total comprehensive income per share	2.13	-0.80	10.81	7.88
Earnings per share (before and after dilution), SEK
Net profit for the period, MSEK	145.8	-26.4	680.9	508.6
Number of shares before dilution (millions of share)	63.36	63.36	63.36	63.36
Number of shares after dilution (millions of share)	63.48	63.36	63.48	63.47
Number of shares before dilution	2.30	-0.42	10.75	8.03
Number of shares after dilution	2.30	-0.42	10.73	8.01

The share

Clas Ohlson Series B shares have been listed on Nasdaq Stockholm since 1999 and are included in the Consumer Services sector index. On 31 July 2024, the share price was SEK 169.80 and the total market capitalisation amounted to 10,758 MSEK.

Number of shares

The number of registered shares totalled 65,600,000 (5,760,000 Series A shares and 59,840,000 Series B shares), unchanged from the preceding year. On 31 July 2024, the company held 2,242,711 shares (2,242,711) corresponding to 3.4 per cent of the total number of registered shares. At the end of the period, the number of shares outstanding, net after buyback, was 63,357,289 (63,357,289).

Dividend policy

Clas Ohlson's dividend policy is that the dividend is to comprise at least 50 per cent of earnings per share after tax, taking into account the company's financial position.

The board proposes a dividend for the financial year 2023/24 of SEK 4.25 per share, divided into two payments of SEK 2.13 and SEK 2.12 respectively. Payment is proposed to take place in September and January.

⁵Largest shareholders per 31 July 2024

Owner	CLAS A	CLAS B	Capital	Votes
Haid family	3,023,880	11,887,913	22.7%	35.9%
Tidstrand family	2,736,120	7,079,828	15.0%	29.3%
Nordea Funds		6,168,044	9.4%	5.3%
If Skadeförsäkring AB		2,262,352	3.4%	1.9%
Vanguard		1,366,316	2.1%	1.2%
Total top 5	5,760,000	28,764,453	52.6%	73.5%
Other shareholders		31,075,547	47.4%	26.5%
Total	5,760,000	59,840,000	100.0%	100.0%
Shares owned by Clas Ohlson		2,242,711	3.4%	1.9%

Share data
Listing	Nasdaq Stockholm Mid Cap
Ticker	Clas B
Industry	Consumer Services
ISIN code	SE0000584948

Update on store network

Clas Ohlson's ongoing review of the store network takes into consideration the market conditions, new customer behaviour patterns, demand projections and contracts signed with property owners. On the reporting date, the number of contracted forthcoming store openings was 7, and the total number of stores was 232 (221).

Openings/closings Q1 2024/25

• Sweden, Lund, Stora Södersgatan, opened 16 May 2024
• Norway, Drammen, CC Drammen, opened 30 May 2024
• Sweden, Helsingborg, Kullagatan, opened 17 June 2024

Openings/closings after the end of the reporting period

• Sweden, Norrköping, Mirum Galleria, closed 31 August 2024
• Sweden, Stockholm Lidingö, scheduled to open in September 2024
• Norway, Tønsberg, scheduled to open in September 2024
• Sweden, Örebro Boglundsängen, scheduled to open in September 2024
• Sweden, Malmö Burlöv center, scheduled to open in September 2024
• Norway, Tynset Elfengveien, scheduled to open in October 2024
• Norway, Fredrikstad Værstetorvet, scheduled to open in November 2024
• Norway, Egersund Alti Eikunda, scheduled to open in November 2024

Stores per market on the reporting date

Sweden 98 Norway 96 Finland 38

This is information that Clas Ohlson AB (publ) is obliged to publish pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out below, on 4 September 2024 at 7:00 a.m. (CET).

This interim report is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern.

Financial calendar

Q1 presentation 4 September 09.00 CET

The report will be presented at 9:00 a.m. via a webcast teleconference. For more information, visit https://about.clasohlson.com

6 September 2024 Annual General Meeting Contact person:

4 December 2024 Interim report Q2 2024/25

12 March 2024 Interim report Q3 2024/25

12 June 2024 Year-end report Q4 2024/25

Niklas Carlsson, Head of Communications and

IR, +46 247 444 29,

niklas.carlsson@clasohlson.se