PIERCE GROUP AB (publ)

Pierce Group AB (publ) 1

Interim report

January – June 2024

Continued improvement

April – June 2024 January – June 2024

Net revenue increased by 3%, totalling SEK 456 (441) million.
Operating profit (EBIT) amounted to SEK 17 (2) million, corresponding to an operating margin of 3.6% (0.6%). Adjusted operating profit (EBIT) was SEK 17 (6) million, and the adjusted operating margin was 3.7% (1.5%).
totalled SEK 24 (-15) million, and the adjusted operating margin was 2.9% (-1.9%).

▪ Net revenue increased by 3%, totalling SEK 812 (786) million.

▪ Operating profit (EBIT) was SEK 24 (-19) million, corresponding to an operating margin of 2.9% (-2.4%). Adjusted operating profit (EBIT)

Cash flow for the period was SEK 83 (64) million and the cash position at the end of the period was SEK 350 (179) million.
Earnings per share before and after dilution was SEK 0.17 (0.33).
Cash flow for the period was SEK 140 (31) million.
Earnings per share before and after dilution was SEK 0.49 (0.18).

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Net revenue	456	441	812	786	1,563	1,537
Growth (%)¹	3%	-2%	3%	-10%	-1%	-8%
Growth in local currencies (%)¹	2%	-7%	2%	-14%	-5%	-13%
Gross profit	201	186	364	323	648	607
Profit after variable costs¹ ²	104	88	186	142	300	256
Overhead costs¹	-69	-67	-128	-129	-266	-267
EBITDA¹	34	17	57	9	12	-36
Operating profit (EBIT)³	17	2	24	-19	-68	-111
Adjusted EBITDA¹ ⁵	35	21	58	13	34	-11
Adjusted operating profit (EBIT)¹ ³ ⁵	17	6	24	-15	-30	-69
Items affecting comparability¹	0	-4	0	-4	-38	-42
Profit/loss for the period	14	26	39	15	-72	-96
Gross margin (%)¹	44.1%	42.1%	44.8%	41.1%	41.4%	39.5%
Profit after variable costs (%)¹	22.7%	20.0%	22.9%	18.1%	19.2%	16.7%
Adjusted EBITDA (%)¹ ⁵	7.6%	4.7%	7.1%	1.7%	2.1%	-0.7%
Adjusted operating margin (EBIT) (%)¹ ⁵	3.7%	1.5%	2.9%	-1.9%	-1.9%	-4.5%
Cash flow for the period	83	64	140	31	200	91
Net debt (+) / Net cash (-)⁴	-350	-179	-350	-179	-350	-222
Earnings per share before dilution (SEK)	0.17	0.33	0.49	0.18	-0.91	-1.21
Earnings per share after dilution (SEK)	0.17	0.33	0.49	0.18	-0.91	-1.21

¹ Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements.

² Variable costs refers, in addition to cost of goods sold, to variable sales and distribution costs. These include direct marketing costs as well as other direct costs and correlates essentially with net revenue.

Other direct costs mainly consist of freight, invoicing and packaging.

³ Operating profit (EBIT) includes depreciation and amortisation. Amortisation attributable to business acquisitions¹ were SEK 21 million during the last twelve months' period and SEK 18 million in the last year, which in both periods included SEK 17 million impairment of goodwill excluded in the adjusted measure.

⁴ Net debt refers to the alternative performance measure net debt excluding IFRS 16.

^⁵ Adjusted measures in Q2 LY, YTD LY and the last year exclude, among others, costs borne for transitions to a permanent CEO.

Adjusted measures in the last twelve months' period and the last year exclude, among others, costs of organisational downsizing. Additionally, adjusted operating profit (EBIT) excludes cost of impairment of goodwill of SEK 17 million during those periods.

Significant events during the reporting period

On 13 May 2024 the Board of Directors revised the medium to long-term financial targets regarding net revenue growth and the adjusted EBIT margin to reflect the prevailing market conditions in which Pierce operates. The capital structure target and the dividend policy remain unchanged.

On 17 May 2024 the Annual General Meeting approved each of the resolutions proposed by the board and/or nomination committee including: ▪ to introduce a long-term incentive program ("LTI 2024") in the form of a performance share program for the Company's senior executives and key employees. A maximum number of 1,025,000 ordinary shares can be issued in this program.

to elect Kenneth Christensen and Niklas Jarl as new ordinary board members. Board member Mattias Feiff had declined re-election.
to elect Grant Thornton Sweden AB as new auditor.

CEO comments

Our ongoing transformation efforts combined with a continued more positive consumer sentiment, especially in the beginning of the quarter, have led to an improvement in our earnings for the second quarter. Our adjusted EBIT amounted to SEK 17 million, up from SEK 6 million last year. Net revenue increased year-over-year to SEK 456 million from SEK 441 million, representing a growth of 3 percent. We also saw an increase in our gross margin, rising to 44.1 percent from 42.1 percent.

Our overhead costs amounted to SEK 69 million up from SEK 67 million last year. The costs were negatively impacted, primarily by the underlying inflation and weakening Swedish currency, but also by costs related to our tech stack modernisation. However, we managed to mitigate most of these negative effects with the savings from the operational efficiency program, undertaken in the fourth quarter of 2023, which delivered in line with expectations.

Cash and cash equivalents at the end of the quarter stood at SEK 350 million, compared to SEK 179 million last year. The improvement is mainly attributable to the inventory, which decreased by as much as SEK 152 million. However, we expect somewhat increased stock levels going forward in support of seasonal fluctuations, the need to ensure product availability and to capture future growth opportunities.

Our vision is to become the unquestionable leading e-tailer of the European market of gear, accessories, and parts for motorcycle riding. To realise this vision, which we call Pierce 2.0, we have identified seven strategic pillars that guide our efforts.

To achieve absolute leadership in the Offroad segment and profitable growth in the Onroad segment
To have the highest customer loyalty in the industry
To create a simple and powerful go-to-market approach
To be the best in the industry in pricing and purchasing
To have market-leading value-for-money own brands
A modern and scalable tech stack
A lean, fast and agile organisation

During the quarter we took significant steps to enhance our customer offering by expanding and optimising our product assortment, bringing more items, selections and choices to our customers. We also made substantial changes in our customer care approach and laid the groundwork for the launch of our first-ever loyalty program. Providing the best shopping experience is key to achieving our strategic pillar of having the highest customer loyalty in the industry.

Additionally, we have finalised the design and ordering of an important part of our 2025 own brand collection, which will be larger and more attractive than ever before. Developing a marketleading, value-for-money own brand offering is one of our strategic pillars and we will take an important step herein when we launch the new private label assortment in the season of 2025.

We are progressing fast in our work to build a composable, cloudbased technology stack, integrating best-in-class systems to enhance our operational capabilities. This will enable us to achieve our strategic objective of creating a simpler and more powerful go-tomarket approach, and it will support the leaner, faster, and more agile organisation we established in the first quarter.

With the increasing geopolitical tensions in several parts of the world, an upcoming election in the US and general economic uncertainty as well as the volatile shipping markets, the outlook remains uncertain. We are however keeping full focus on our operations, taking active measures in relation to what we can control, and remain fully committed to our vision and strategic objectives.

Göran Dahlin

CEO, Pierce Group AB (publ) Stockholm, 23 August 2024

Performance measures – Group

	Apr-Jun			Jan-Jun		Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jul 2023- Jun 2024	2023
Revenue measures
Net revenue per geographical area
Nordics	171	170	285	284	509	508
Outside the Nordics	285	271	527	502	1,054	1,029
Net revenue	456	441	812	786	1,563	1,537
Growth per geographical area
Nordics (%)¹	0%	-4%	0%	-12%	-4%	-10%
Outside the Nordics (%)¹	5%	-1%	5%	-8%	-0%	-7%
Growth (%)¹	3%	-2%	3%	-10%	-1%	-8%

Performance measures
Gross margin (%)¹	44.1%	42.1%	44.8%	41.1%	41.4%	39.5%
Profit after variable costs (%)¹	22.7%	20.0%	22.9%	18.1%	19.2%	16.7%
Overhead costs (%)¹	15.1%	15.3%	15.8%	16.4%	17.0%	17.4%
Adjusted EBITDA (%)¹	7.6%	4.7%	7.1%	1.7%	2.1%	-0.7%
Adjusted operating margin (EBIT) (%)¹	3.7%	1.5%	2.9%	-1.9%	-1.9%	-4.5%

Earnings per share before dilution (SEK)	0.17	0.33	0.49	0.18	-0.91	-1.21
Earnings per share after dilution (SEK)	0.17	0.33	0.49	0.18	-0.91	-1.21

Cash flow and other financial measures
Operating profit (EBIT)	17	2	24	-19	-68	-111
Investments	0	-2	-2	-3	-6	-8
Operating profit (EBIT) minus investments	16	1	22	-22	-74	-118
Changes in net working capital	57	56	93	34	165	105
Other non-cash items¹ ²	11	8	24	18	97	91
Operating cash flow¹	83	64	140	30	188	78
Paid/received blocked funds	-2	—	-2	0	-2	0
Other cash flow¹ ³	2	0	3	2	14	13
Cash flow for the period	83	64	140	31	200	91
Cash and cash equivalents⁴	350	179	350	179	350	222

Net debt excluding IFRS 16¹ ⁴ ⁶	-350	-179	-350	-179	-350	-222
Net debt/EBITDA¹ ⁵	-216.7	8.3	-216.7	8.3	-216.7	5.2

Inventory⁴	307	459	307	459	307	344
Other current operating assets¹ ⁴	27	28	27	28	27	14
Other current operating liabilities¹ ⁴	-297	-260	-297	-260	-297	-251
Net working capital¹  ⁴	37	227	37	227	37	107

Operating measures
Number of orders (thousands)¹	416	429	760	783	1,434	1,456
Average order value (AOV) (SEK)¹	1,097	1,028	1,069	1,004	1,090	1,055
Net revenue from private brands¹	185	187	327	332	635	640
Active customers last 12 months (thousands)¹	1,004	1,083	1,004	1,083	1,004	1,021

² Other non-cash items refer, in all significance, to amortisation and depreciation, excluding depreciation of right-of-use assets, and changes in current short term provisions. Amortisation in the last twelve months' periods and in the last year ¹ Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements.

was affected by goodwill impairment and amortisation of discontinued brands of total SEK 21 million and SEK 18 million, respectively. Additionally, the same periods show adjustments for non-cash items that included a provision for slow moving inventory of SEK 44 million.

³Other cash flow mainly regards paid/received tax, paid financial net and new share issues and issue of warrants excluding paid issue costs.

⁴ Measures correspond to each period end.

⁵ Net debt refers to the alternative performance measure net debt excluding IFRS 16, and EBITDA refers to the measure adjusted EBITDA excluding IFRS 16.

⁶ Positive values refer to net debt, whereas negative values refer to net asset. The net debt/EBITDA ratio is positive due to the combination of both negative net debt and EBITDA.

Pierce – Riders in eCommerce

Pierce is a leading e-commerce Company that sells motorcycle and snowmobile gear, parts and accessories to riders across Europe. The Company has a unique and wide range of products, which includes a significant range of own brands. Sales are conducted through locally adapted websites that are divided in three segments: Offroad, Onroad, and Other. Offroad targets motocross and enduro riders through the website 24MX while Onroad targets customers who ride on traffic-filled roads through the website XLMOTO. The Other segment primarily targets snowmobile riders through the website Sledstore. Pierce is a European Company with headquarters in Stockholm, a centralised warehouse in Szczecin, where it also has an office with IT, Finance and Marketing expert teams, and a customer care function in Barcelona. The Company employs approximately 330 people.

Comments to the Group's profit/loss for the period

(Figures in parentheses refer to the equivalent period last year)

April – June 2024

Net revenue

Net revenue increased by 3 percent to SEK 456 (441) million. In local currencies the increase was 2 percent. Net revenue for the Offroad and Onroad segments increased by 6 percent and 2 respectively. Net revenue for the Other segment (which is highly seasonal and smaller than the other two segments) declined by 40 percent. The decrease is partly explained by the closure of Pierce's physical store in Stockholm at the end of 2023.

Gross profit and gross margin

Gross profit amounted to SEK 201 (186) million, equivalent to a gross margin of 44.1 (42.1) percent. The positive development of 2.0 percentage points was mainly achieved by increased prices to customers and reduced in-freight costs.

Gross profit also included a net positive effect of SEK 3 million (0.8 percent of net revenue), mainly as a result of the reversal of the obsolescence provision, which is a result of the increased focus on slow-moving stock.

Shipping costs for purchase of goods of SEK -18 (-21) million correspond to 3.9 (4.9) percent of revenue. The ratio of shipping costs as a percentage of revenue decreased by 1.0 percentage points versus the same quarter last year. Ongoing disruptions within the Red Sea region since December 2023 (among other geopolitical factors) are causing global supply chain challenges, necessitating vessel diversions around Africa and exacerbating capacity constraints. Asian exports, particularly to Europe via the Suez Canal, and Oceania networks are significantly affected by port congestion and delays, influencing global trade routes beyond the Red Sea region. These matters and other uncertainties such as the US economy and election as well as the general geopolitical climate may have a material impact in the coming quarters on freight prices. In-freight shipping market rates have generally been higher in 2024 vs end 2023, especially in the second quarter. They have also been more volatile, also considering normal seasonality. While the current outlook is uncertain, there is a risk that shipping rates will continue to be volatile and (on average for the Company, like its competitors) higher. In consequence, the Company is taking active measures to reduce the potential impact on margins. However, it is possible that higher average freight costs may increase the cost of goods sold and constrain margin growth, to the extent that these costs cannot be passed on or other measures do not succeed.

Operating costs

Sales and distribution costs amounted to SEK -137 (-136) million, equivalent to 30.1 (30.8) percent of net revenue, an improvement in ratio of 0.6 percentage points. Lower variable costs, mainly for marketing and personnel, partially offset an increase in freight costs to customers and amortisation expenses.

Administration costs were SEK -47 (-49) million, which included SEK -2 million of accelerated amortisation of trademarks to be discontinued.

Out of the above, Overhead costs were SEK -69 (-67) million. They were negatively affected by underlying increases, mainly from the prevailing inflationary trends and the negative impact of exchange rates. Additionally, the tech stack modernisation work entailed increased costs in the quarter, besides normal cost fluctuations.

The outcome from the operational efficiency program undertaken in the fourth quarter of 2023 was in line with expectations, which mitigated most of the abovementioned cost increases.

Adjusted EBIT and EBIT

Adjusted operating profit (EBIT) was SEK 17 (6) million, equivalent to a margin of 3.7 (1.5) percent.

Items affecting comparability totalled SEK 0 (-4) million.

Operating profit (EBIT) totalled SEK 17 (2) million.

Financial items

Financial income was SEK 3 (27) million from interest income on deposits. Aside from interest income on deposits, last year's financial income included a positive impact from the revaluation of financial balance sheet items of SEK 22 million and gains from the revaluation of currency derivatives of SEK 4 million.

Financial expenses were SEK -5 (-2) million and in both periods included leasing expenses and credit facility fees. In the current quarter, financial expenses also included a negative effect from the revaluation of financial balance sheet items of SEK -4 million and losses from the revaluation of currency derivatives of SEK -1 million.

Taxes and result for the period

Tax totalled SEK -1 (-1) million and the result for the period was SEK 14 (26) million.

January – June 2024 Net revenue

Net revenue increased by 3 percent to SEK 812 (786) million. In local currencies, the growth was 2 percent. Increase within the main segments Offroad and Onroad was 6 percent and 3 percent, respectively. Net revenue for the Other segment (which is highly seasonal and smaller than the other two segments) declined by 15 percent. The decrease is partly explained by the closure of Pierce's physical store in Stockholm at the end of 2023.

Gross profit and gross margin

Gross profit amounted to SEK 364 (323) million, equivalent to a margin of 44.8 (41.1) percent. The positive development of 3.7 percentage points was mainly achieved by increased prices to customers, reduced in-freight costs and a reversal of the obsolescence provision.

Our focus on slow moving stock over the last few quarters successfully resulted in a positive effect of SEK 12 million (1.5 percent of net revenue), primarily due to reversal of obsolescence provision.

Shipping costs for purchase of goods totalled SEK -32 (-41) million. The reduction improved the ratio of shipping costs to net revenue by 1.3 percentage points, although this is not considered a permanent improvement. Ongoing disruptions within the Red Sea region since December 2023 (among other geopolitical factors) are causing global supply chain challenges, necessitating vessel diversions around Africa and exacerbating capacity constraints. Asian exports, particularly to Europe via the Suez Canal, and Oceania networks are significantly affected by port congestion and delays, influencing global trade routes beyond the Red Sea region. These matters and other uncertainties such as the US economy and election as well as the general geopolitical climate may have a material impact in the coming quarters on freight prices. In-freight shipping market rates have generally been higher in 2024 vs end 2023, especially in the second quarter. They have also been more volatile, also considering normal seasonality. While the current outlook is uncertain, there is a risk that shipping rates will continue to be volatile and (on average for the Company, like its competitors) higher. In consequence, the Company is taking active measures to reduce the potential impact on margins. However, it is possible that higher average freight costs may increase the cost of goods sold and constrain margin growth, to the extent that these costs cannot be passed on or other measures do not succeed.

Operating costs

Sales and distribution costs amounted to SEK -253 (-254) million, equivalent to 31.2 (32.3) percent of net revenue, an improvement in ratio of 1.1 percentage points. Lower variable costs, mainly for marketing and personnel, partially offset increased costs for the warehouse, located in Poland, as the PLN has strengthened significantly compared to SEK.

Administration costs were SEK -90 (-90) million. Excluding items affecting comparability, these costs totalled SEK -90 (-86) million.

Out of the above, Overhead costs were SEK -128 (-129). They were negatively affected primarily due to prevailing inflationary trends and negative exchange rate impacts. Costs associated with the tech stack modernisation also impacted the Overhead costs together with normal cost fluctuations. These cost increases were mitigated by the savings achieved by the operational efficiency program undertaken in the fourth quarter of 2023.

Adjusted EBIT and EBIT

Adjusted operating profit (EBIT) amounted to SEK 24 (-15) million, equivalent to a margin of 2.9 (-1.9) percent. The increase in gross margin was impacted positively by a reversal of the obsolescence provision.

Operating profit (EBIT) amounted to SEK 24 (-19) million and was impacted by items affecting comparability totalling SEK 0 (-4) million. Last year these were related mainly to transition of CEO.

Operating profit was affected negatively by exchange rate fluctuations compared with the same period 2023. The Company utilised currency derivatives to reduce risks related to these fluctuations, and the effect from these currency derivatives was SEK 3 (8) million and is reported as a financial item.

Financial items

Financial income totalled SEK 18 (37) million, of which SEK 10 (27) million referred to exchange rate differences related to the revaluation of financial balance sheet items, and SEK 3 (8) million was attributable to gains from exchange rate effects from currency derivatives, and lastly SEK 5 (1) million was income from short-term bank deposits.

Financial expenses of SEK -2 (-3) million in both periods consisted of leasing expenses and credit facility fees.

Taxes and results for the period

Tax totalled SEK -1 (0) million and the result for the period was SEK 39 (15) million.

Comments to the Group's cash flow

(Figures in parentheses refer to the equivalent period last year) April – June 2024

Cash flow from operating activities was SEK 93 (73) million. Compared with the same period in 2023, the improvement mainly originated from operating profit (EBIT) of SEK 17 (2) million.

Changes in net working capital was SEK 57 (56) million.

Cash flow from investments at the end of the quarter totalled SEK -3 (-2) million and referred to a security deposits and to the purchase of equipment for the distribution warehouse, while in the same reporting period in 2023 this figure was related to investments in IT systems.

Cash flow from financing activities was SEK -7 (-7) million and consisted of leasing payments in both periods.

Cash flow for the period was SEK 83 (64) million and cash equivalents at the end of the period totalled SEK 350 (179) million.

Comments to the Group's financial position

(Figures in parentheses refer to the equivalent period last year)

Net working capital

Net working capital at the end of the period was SEK 37 (227) million, which is a significant improvement. The continuous efforts over recent quarters to optimise inventory levels and stock management, as well as the change in the assumptions for the provision of slow-moving stock, are the main drivers that have resulted in a decrease in inventory of SEK 152 million compared to the previous year.

Net working capital was further, compared to the same period last year, positively affected by favorably higher balance of accounts payables, and an increase of accrued costs that should be presented in the second quarter.

Net working capital at the end of the quarter was at a historically low level and is expected to increase in the coming quarters.

Right-of-use assets and leasing liabilities

Right-of-use assets amounted to SEK 47 (67) million. The change was a result of depreciation for the period netted against new lease contracts. Leasing liabilities amounted to SEK 46 (68) million.

January – June 2024

Cash flow from operating activities was SEK 158 (48) million. The improvement between the comparative periods originated mainly from operating profit of SEK 24 (-19) million and from changes in net working capital of SEK 93 (34) million, indicating that the measures taken to optimise inventory levels and forecasting are operating well and continue to yield positive results.

Cash flow from investments totalled SEK -4 (-3) million and referred to a paid security deposit and to the purchase of equipment for the distribution warehouse, and last year to investments in IT systems.

Cash flow from financing activities was SEK -14 (-14) million and consisted solely of leasing payments in the current period.

Cash flow for year to date was SEK 140 (31) million. Including exchange rate differences, which totalled SEK -12 (12) million, cash and cash equivalents at the end of the period amounted to SEK 350 (179) million.

Operating cash flow during the last twelve months amounted to SEK 188 (4) million.

Net debt / net asset and credit facility

The net cash position at the end of the period equaled cash and cash equivalents and amounted to SEK 350 (179) million. Pierce has a credit facility of up to SEK 150 million that had not been utilised at the end of the period. The credit facility is subject to, amongst other things, certain financial covenants regarding the Group's leverage ratio and interest coverage ratio. As of 30 June 2024, Pierce was not in breach of the covenants in accordance with the current agreements for the credit facility. Pierce has a sufficient cash balance and is not utilising the credit facility, but there is a risk that in the future Pierce will not be able to comply with the covenants and therefore not be able to utilise the credit facility. Covenants are reported quarterly.

Equity

The Group's equity at the end of the period amounted to SEK 668 (739) million. The SEK 71 million decrease in equity is explained primarily by the losses incurred in the last twelve month period, of SEK 72 million, and by adding back of the positive effect of the translation reserve of SEK 1 million.

Development per segment

(Figures in parentheses refer to the equivalent period last year)

Pierce's operations are, in all essential aspects, carried out in Europe and primarily within the segments Offroad and Onroad. Offroad refers to sales to motocross and enduro riders, and these products are sold under the store brand 24MX. Onroad refers to sales to motorcycle riders primarily using high roads, and the products are sold under the store brand XLMOTO. Within Offroad, Pierce has significantly larger market shares compared to Onroad. The Company's addressable market within Onroad is significantly larger and more exposed to competition compared to Offroad. Pierce's sales consist of gear, parts and accessories. Pierce has one additional smaller segment, Other, which primarily focuses on sales to snowmobile riders in the Nordics and is naturally highly seasonal and e.g. dependent on snowfall. The Other segment also previously included sales made through Pierce's physical store in Stockholm, at which operations were discontinued at the end of 2023.

Overall summary

		Apr-Jun		Jan-Jun		Jan-Dec
SEKm	2024	2023	2024	2023	Jun 2024	2023
Offroad	264	248	481	456	977	952
Onroad	186	183	293	285	504	496
Other	6	10	38	45	82	89
Net revenue	456	441	812	786	1,563	1,537
Offroad	124	111	228	197	424	393
Onroad	76	71	118	108	188	178
Other	3	4	18	18	37	37
Intra-group costs¹	-1	0	-1	0	-1	-1
Gross profit	201	186	364	323	648	607
Offroad	69	59	125	98	215	188
Onroad	34	28	52	39	69	55
Other	1	2	9	5	17	14
Intra-group costs¹	-1	0	-1	0	-1	-1
Profit after variable costs² ³	104	88	186	142	300	256

¹ Intra-group costs, consist of exchange rate revaluation of net working capital items which are not divided between segments. These amounted in Q3 2023 SEK -1 (-2) million, Q4 2023 SEK 0 (2) million, Q1 2024 SEK 0 (0) million and Q2 2024

SEK -1 (0) million.

² Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements.

³ Variable costs refers, in addition to cost of goods sold, to variable sales and distribution costs. These include direct marketing costs as well as other direct costs and correlates essentially with net revenue.

For more information about the segment, see Note 4. Other direct costs mainly consist of freight, invoicing and packaging.

Offroad

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Net revenue	264	248	481	456	977	952
Growth (%)¹	6%	2%	6%	-6%	1%	-5%
Gross profit	124	111	228	197	424	393
Gross margin (%)¹	46.9%	44.8%	47.4%	43.3%	43.4%	41.3%
Profit after variable costs¹ ²	69	59	125	98	215	188
Profit after variable costs (%)¹	26.2%	23.7%	26.0%	21.6%	22.0%	19.8%
Number of orders (thousands)¹	238	231	446	437	877	868
Average order value (AOV) (SEK)¹	1,109	1,077	1,080	1,044	1,114	1,096
Active customers last 12 months (thousands)¹	595	611	595	611	595	585

¹ Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements.

Other direct costs mainly consist of freight, invoicing and packaging. For more information about the segment, see Note 4.

April – June 2024

Net revenue increased by 6 percent to SEK 264 (248) million. In local currencies revenue improved by 4 percent. Net revenue outside the Nordics increased by 8 percent, and by 5 percent in local currencies. Net revenue in the Nordics increased by 1 percent, 0 percent in local currencies.

Profit after variable costs amounted to SEK 69 (59) million, which was equivalent to a margin of 26.2 (23.7) percent.

January – June 2024

Net revenue increased by 6 percent, totalling SEK 481 (456) million. In local currencies the increase was 4 percent. Net revenue in the Nordics decreased by 0 percent and outside the Nordics it increased by 7 percent. In local currencies, the decrease was 0 and 5 percent, respectively.

Profit after variable costs amounted to SEK 125 (98) million, equivalent to a margin of 26.0 (21.6) percent. The rise in margins during the quarter and January – June period primarily resulted from higher customer prices, higher gross margin and reduced overall expenses in variable costs.

Onroad

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Net revenue	186	183	293	285	504	496
Growth (%)¹	2%	-7%	3%	-14%	-4%	-13%
Gross profit	76	71	118	108	188	178
Gross margin (%)¹	40.6%	38.9%	40.3%	37.8%	37.4%	35.9%
Profit after variable costs¹ ²	34	28	52	39	69	55
Profit after variable costs (%)¹	18.4%	15.4%	17.8%	13.5%	13.7%	11.2%
Number of orders (thousands)¹	172	191	279	305	486	511
Average order value (AOV) (SEK)¹	1,081	956	1,049	934	1,037	969
Active customers last 12 months (thousands)¹	356	411	356	411	356	378

¹ Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements. ² Variable costs refers, in addition to cost of goods sold, to variable sales and distribution costs. These include direct marketing costs as well as other direct costs and correlates essentially with net revenue.

Other direct costs mainly consist of freight, invoicing and packaging.

For more information about the segment, see Note 4.

April – June 2024

Net revenue increased by 2 percent to SEK 186 (183) million. The change to last year in local currencies was approximately 0 percent. The growth in the Nordics and outside the Nordics was 4 and 0 percent respectively. In local currencies the change was 3 and -3 percent respectively.

Profit after variable costs, SEK 34 (28) million, was equivalent to a margin of 18.4 (15.4) percent.

January – June 2024

Net revenue increased by 3 percent, totalling SEK 293 (285) million. The increase in local currencies was approximately 1 percent. Growth in the Nordics and outside the Nordics amounted to 6 and 0 percent respectively. In local currencies the change was 6 and -3 percent, respectively.

Profit after variable costs amounted to SEK 52 (39) million, equivalent to a margin of 17.8 (13.5) percent. The rise in margins during the quarter and January – June period primarily resulted from higher customer prices, a higher gross margin and reduced overall expenses in variable costs.

Other

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Net revenue	6	10	38	45	82	89
Growth (%)¹	-40%	-4%	-15%	-19%	-11%	-13%
Gross profit	3	4	18	18	37	37
Gross margin (%)¹	44.7%	40.6%	48.0%	40.2%	44.8%	41.1%
Profit after variable costs¹ ²	1	2	9	5	17	14
Profit after variable costs (%)¹	18.2%	17.6%	23.8%	11.5%	21.3%	15.2%
Number of orders (thousands)¹	6	7	35	41	71	77
Average order value (AOV) (SEK)¹	1,060	1,362	1,084	1,096	1,161	1,162
Active customers last 12 months (thousands)¹	53	61	53	61	53	58
¹ Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements.

Other direct costs mainly consist of freight, invoicing and packaging.

For more information about the segment, see Note 4.

April – June 2024

Net revenue decreased by 40 percent to SEK 6 (10) million compared with the previous year. In local currencies the decrease was 40 percent. The decrease is partly explained by the closure of Pierce's physical store in Stockholm at the end of 2023.

Profit after variable costs, SEK 1 (2) million, was equivalent to a margin of 18.2 (17.6) percent.

January – June 2024

Net revenue decreased by 15 percent to SEK 38 (45) million compared with the previous year. In local currencies the decrease was 14 percent. The decrease is partly explained by the closure of Pierce's physical store in Stockholm at the end of 2023.

Profit after variable costs amounted to SEK 9 (5) million, equivalent to a margin of 23.8 (11.5) percent.

The Pierce Share

The Pierce share is listed on the Nasdaq Stockholm Small Cap and trades under the ticker symbol PIERCE and ISIN code SE0015658364.

On 14 March 2024 a total of 950,000 series C shares were registered through a directed share issue to ensure the delivery of performance shares to participants in LTIP 2023/2026 performance-based share program. The series C shares carry one-tenth of a vote per share and do not entitle the holder to dividends. As the Company holds all issued series C shares in treasury, the 95,000 votes they carry cannot be represented at any General Meeting.

As of 30 June 2024, the share capital consisted of 79,374,100 ordinary shares with one vote per share and 950,000 series C shares with onetenth of a vote per share, totalling 80,324,100 shares and 79,469,100 votes, equivalent to a quota value of SEK 0.02.

The share price at the beginning of the year was SEK 6.5 and was SEK 9.5 on the last trading day of the period. The number of shareholders was 1,533, of which the largest were Verdane Capital (29.5%), Procuritas (25.1%), Fourth AP fund (Sw. Fjärde AP-fonden) (6.0%), Eric Thysell (5.1%) and Adrigo Asset Management (4.4%).

The Company has three ongoing long-term incentive programs – LTIP, for CEO, Group Management and key employees. See the additional information provided below.

LTIP 2021/2024

LTIP 2021/2024 was issued in March 2021 as a part of an incentive program for certain senior executives and key employees of the Group. The program comprises 376,443 warrants, all of which were subscribed to as of 31 March 2021. The warrants were subscribed at market value, calculated applying the Black & Scholes model, equivalent to SEK 4 million. Each warrant entitles the holder to subscribe to 1.03 ordinary shares in the Company.

The warrants can be exercised from the day after publication of the interim report for the period 1 January – 31 March 2024 however, not earlier than on 1 April 2024, up to and including 31 August 2024, at an updated predetermined share price of SEK 71.2. With the full subscription of the warrants, the Company's share capital can increase with a maximum of SEK 7,528.9, based on the current quota value.

The Company has reserved the right to repurchase warrants if, amongst other circumstances, the Participant's employment with the Company is terminated.

LTIP 2023/2026

LTIP 2023/2026 was approved by the Annual General Shareholders' Meeting on 16 May 2023, as part of an incentive program in the form of a performance-based share program for the CEO, Group Management and key employees. The program is accounted for in accordance with IFRS 2 which stipulates that the right to receive performance shares shall be expensed as a personnel cost over the vesting period. Provided that specific targets are met, a maximum of 950,000 ordinary shares can be issued to the participants for a subscription price of SEK 0.00. The vesting period ends on 16 May 2026 and participants will be awarded ordinary shares in accordance with the Terms and Conditions of the LTIP 2023/2026.

LTIP 2024/2027

LTIP 2024/2027 was approved by the Annual General Shareholders' Meeting on 17 May 2024, as part of an incentive program in the form of a performance-based share program for the CEO, Group Management and key employees. The program is accounted for in accordance with

IFRS 2 which stipulates that the right to receive performance shares shall be expensed as a personnel cost over the vesting period. Provided that specific targets are met, a maximum of 1,025,000 ordinary shares can be issued to the participants for a subscription price of SEK 0.00. The vesting period ends on 17 May 2027 and participants will be awarded ordinary shares in accordance with the Terms and Conditions of the LTIP 2024/2027.

Significant events during the reporting period

On 13 May 2024 the Board of Directors revised the medium to long term financial targets regarding the net revenue growth and the adjusted EBIT margin to reflect the prevailing conditions in the market where Pierce operates. The capital structure target and the dividend policy remain unchanged.

On 17 May 2024 the Annual General Meeting approved to introduce a long-term incentive program ("LTI 2024") in the form of a performance share program for the Company's senior executives and key employees. A maximum of 1,025,000 ordinary shares can be issued in this program.

On 17 May 2024 the Annual General Meeting resolved to elect Kenneth Christensen and Niklas Jarl as new ordinary board members. Board member Mattias Feiff had declined re-election.

On 17 May 2024 the Annual General Meeting elected Grant Thornton Sweden AB as new auditor.

Significant events after the end of the reporting period

No significant events took place after the end of the reporting period.

Impact of currency effects

In all material aspects, net revenue and the sum of total costs and investments are equivalent to payments received and payments made. Payments received during the last 12-month period in EUR, SEK and NOK accounted for 56, 14 and 10 percent respectively. With regards to payments made, EUR, SEK, USD and PLN accounted for 47, 24, 14 and 9 percent respectively. In order to reduce exposure to effects on earnings and cash flow due to exchange rate fluctuations, the Group utilised currency derivatives for certain currencies, including EUR, PLN and USD.

Furthermore, operating assets and operating liabilities in foreign currency are revalued at the end of each month. This revaluation refers primarily to operating liabilities including trade payables. Exchange rate fluctuations arising from revaluations of operating balance sheet items are reported net, primarily as a part of the cost of goods sold.

If leasing agreements have been signed in a currency other than the functional currency of each Group company, the leasing liability is revalued at each month-end close. These revaluation effects, as well as the revaluation of financial balance sheet items, are reported in financial net.

Employees

The average number of employees during the quarter amounted to 329 (403). Of these, 115 (137) worked at the distribution warehouse in Poland and 202 (256) were white collar workers in Sweden, Poland and Spain.

Excluding customer services personnel and certain production staff, the number of white-collar workers was 156 (195).

Seasonal variations

As the peak of the Offroad and Onroad motorcycle season occur in the second quarter, this time of the year generates the highest net revenue level of about 30 percent of total sales. The fourth quarter however, usually present the second highest level of net revenue, due to "Black week" and Christmas sales, while the first quarter have the lowest impact on total net revenue, slightly exceeding 20 percent of total sales.

Parent Company

Pierce Group AB (publ), Corp. ID Number 556967-4392, is the Parent Company in the Pierce Group, and is a public company with registered offices in Stockholm, Sweden. Since 26 March 2021, Pierce Group AB (publ) is listed on the Nasdaq Stockholm Small Cap.

The object of the Parent Company's business is to own and manage real property and movable property and directly or indirectly, through subsidiaries, carry out sales of equipment, accessories, and spare parts for motorcycles and other vehicles, and carry out other operations consistent therewith.

During the quarter, net revenue totalled SEK 5 (5) million and was fully attributable to sales to Group companies. Financial net consisted of interest income from an intercompany loan. Net result before tax for the quarter was SEK 5 (2) million.

The Parent Company's equity at the end of the period was SEK 750 (747) million.

The CEO and CFO are employed in the Parent Company.

Risks and factors of uncertainty

The Group's operations and results are affected by a number of external factors. The Pierce Group is primarily exposed to operational risks which are largely comprised of competition and market developments in local markets, quality of delivered goods mainly from Asia, inventory and product assortment risks, IT-related risks, and dependency on key individuals. A more detailed description of risks and risk management can be found in Pierce's Annual Report for 2023.

As in previous periods, inflation and the prevailing economic climate affect consumer behavior and demand and continue to be factors of uncertainty.

On 24 February 2022, the conflict between Russia and Ukraine started and has continued since. On 7 October 2023, an armed conflict between Israel and Hamas-led Palestinian militant groups has been taking place chiefly in and around the Gaza Strip. The conflict has also spread locally and impacted some neighboring countries as well as the Red Sea area.

The general geo-political instability and the specifically mentioned conflicts might imply a major impact on prices, exchange rates, import and export restrictions, availability of raw materials and goods and resources where Russia, Belarus and/or Ukraine as well as Israel and other countries in the Middle East are involved.

The Pierce Group has no material direct operations in any of the directly involved countries which implies that the direct impact of the events is assessed as low. However, the indirect effects can prove to be significant depending on the manner in which the situation develops and the duration of the conflict. The primary effect thus far is the impact on customer demand in general in Europe as well as on shipping through the Red Sea. Since the beginning of the Ukraine conflict, the decrease in demand has had a negative effect on Pierce's sales. Ongoing disruptions within the Red Sea region since December 2023 are causing global

supply chain challenges, necessitating vessel diversions around Africa and exacerbating capacity constraints. Asian exports, particularly to Europe via the Suez Canal, and Oceania networks are significantly affected by port congestion and delays, influencing global trade routes beyond the Red Sea region. These matters and other uncertainties such as the US election may have a great impact in the coming quarters on freight prices. In-freight shipping market rates have generally been higher in 2024 vs end 2023, especially in the second quarter. They have also been more volatile, also considering normal seasonality. While the current outlook is uncertain, there is a risk that shipping rates will continue to be volatile and (on average for the Company, like its competitors) higher. In consequence, the Company is taking active measures to reduce the potential impact on margins. However, it is possible that higher average freight costs may increase the cost of goods sold and constrain margin growth, to the extent that these costs cannot be passed on or other measures do not succeed. Changes in freight prices typically have an effect on cash and working capital as the goods purchased are inbounded, the impact on profit and loss however materializes as the product is sold.

Also, like many competitors and suppliers in the market in which the Company operates, Pierce is heavily dependent (both directly and indirectly) on suppliers in China. Depending on how the geopolitical situation develops, it may become more difficult and/or costly to obtain a consistent supply of products from this market.

Furthermore, the impact on the financial and foreign exchange markets could have a negative effect on Pierce.

Financial risks include e.g., currency risks (see previous page), interest rate risks and the risk of not being able to obtain sufficient financing. Ecommerce is characterised, amongst other things, by a sharp increase in sales during certain campaign periods. If Pierce's sales do not develop in line with the Group's expectations during these periods, this may affect both the result and financial position negatively.

Pierce has a credit facility with one of the larger Swedish banks of up to SEK 150 million that had not been utilised at the end of the period. The credit facility is subject to, amongst other things, certain financial covenants regarding the Group's leverage ratio and interest coverage ratio. As of 30 June 2024, Pierce was not in breach of the covenants in accordance with the current agreements for the credit facility. Pierce has a sufficient cash balance and is not utilising the credit facility, but there is a risk that in the future Pierce will not be able to comply with the covenants and therefore not be able to utilise the credit facility.

For further information, see Note 7.

Pierce performs impairment testing for assets applying a discount rate considering the risk-free interest level. There is a risk that the risk-free interest level will increase and, as a result, the discount rate used to calculate asset values will also increase, something that could lead to the recognition of impairment of assets.

Related party transactions

During the current interim period Pierce purchased goods (for resale in its ordinary business) from O'Neal Europe GmbH & Co. KG, a company controlled by Pierce Group AB Board Member Thomas Schwarz, for a price of SEK 11 (6) million. Transactions with this supplier were performed on commercial market terms.

For further information regarding related parties see Note 6.

Medium to long term financial targets

Pierce's Board of Directors has adopted the following medium to long term financial targets1.

Net revenue growth

In the medium to long term (3-5 years), organically outgrow the European online market for motorcycle gear, accessories and parts.

Adjusted operating margin (EBIT)

In the medium to long term (3-5 years), achieve an adjusted operating margin (EBIT) of 5-8 percent.

Capital structure

Net debt/EBITDA² not exceeding 2.0x, subject to temporary flexibility for strategic initiatives.

Dividend policy

Over the next few years, free cash flows³ are planned to be used for the continued development⁴ of the Company and thus not distributed to the shareholders.

¹ The Board adopted the financial targets in May 2024.

² Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements. ³ Free cash flow refers to cash flow from operating activities and operations and investment activities.

⁴ Development of the company refers to e.g., investments in IT-hardware, IT-development, expansion of distribution warehouses, marketing, customer acquisition and business and asset acquisitions.

Other

The interim report was not subject to review by the Company's auditors.

Upcoming financial events

15 November 2024

Interim report January – September 2024

21 February 2025

Year-end report January – December 2024

21 March 2025

Annual report 2024

16 May 2025

Interim report January – March 2025

Telephone and web conference in conjunction with the publication of quarterly report

CEO Göran Dahlin and CFO Fredrik Ideström will hold a web telephone conference in English on 23 August 2024, 9.00 am CEST, in conjunction with the publication of the quarterly report.

To participate via telephone conference, please register via the link below.

https://conference.financialhearings.com/teleconference/?id=50048918.

After registration, you will be provided with a telephone number and a conference ID to access the telephone conference. You can ask questions verbally via the telephone conference.

The presentation and conference can be followed via the following web link:

https://ir.financialhearings.com/pierce-group-q2-report-2024.

The presentation material will be available prior to the start of the conference on Pierce Group's website via the following web link: https://www.piercegroup.com/en/reports-presentations/

Contact information, Pierce

Göran Dahlin, CEO, +46 72 730 31 11 Fredrik Ideström, CFO, +46 76 546 49 80

The information in this interim report comprises information which Pierce Group AB (publ) is obliged to disclose under the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication by the above mentioned contact individuals on 23 August 2024 at 08:00 CEST.

Signatures

The undersigned hereby confirm that the interim report provides a true and fair view of the Parent Company's and Group's operations, financial position and results, and that it describes the significant risks and uncertainties to which the Parent Company and the companies included in the Group are exposed.

Stockholm, 23 August 2024

Henrik Theilbjørn	Göran Dahlin
Chairman of the Board	CEO

Kenneth Christensen	Max Carlsén
Board Member	Board Member

Thomas Schwarz	Lottie Saks
Board Member	Board Member

Niklas Jarl
Board Member

Condensed consolidated statement of profit/loss

		Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	Note	2024	2023	2024	2023	Jun 2024	2023
Net revenue	3.4	456	441	812	786	1,563	1,537
Cost of goods sold		-255	-255	-448	-463	-915	-930
Gross profit	4	201	186	364	323	648	607
Sales and distribution costs		-137	-136	-253	-254	-505	-505
Administration costs		-47	-49	-90	-90	-211	-212
Other operating income and expenses		0	1	3	2	0	-1
Operating profit	4	17	2	24	-19	-68	-111
Financial net		-2	25	16	33	-5	13
Profit/loss before tax	4	14	27	40	14	-73	-98
Tax		-1	-1	-1	0	1	2
Profit/loss for the period		14	26	39	15	-72	-96
Attributable to shareholders of the parent company		14	26	39	15	-72	-96
Earnings per share
Earnings per share before dilution (SEK)		0.17	0.33	0.49	0.18	-0.91	-1.21
Earnings per share after dilution (SEK)		0.17	0.33	0.49	0.18	-0.91	-1.21
Average number of shares before dilution (thousands)		79,374	79,374	79,374	79,374	79,374	79,374
Average number of shares after dilution (thousands)		79,512	79,374	79,506	79,374	79,374	79,374

Consolidated statement of comprehensive income

		Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm	Note	2024	2023	2024	2023	Jun 2024	2023
Profit/loss for the period		14	26	39	15	-72	-96
Items that may subsequently be reclassified to income
Translation difference		2	6	2	6	1	5
Other comprehensive income for the period		2	6	2	6	1	5
Comprehensive income for the period and attributable to
shareholders of the parent company		16	32	40	20	-71	-91

Condensed consolidated statement of financial position

		Jun 30	Jun 30	Dec 31
SEKm	Note	2024	2023	2023
Assets
Non-current assets
Intangible assets		295	341	310
Property, plant and equipment		14	15	15
Right-of-use assets		47	67	53
Financial assets	7	5	4	3
Deferred tax assets		7	5	8
Total non-current assets		367	431	389
Current assets
Inventory		307	459	344
Other current assets	5	29	41	15
Cash and cash equivalents		350	179	222
Total current assets		687	678	582
Total assets		1,054	1,110	970
Equity and liabilities
Total equity attributable to shareholders of the parent company		668	739	627
Non-current liabilities
Leasing liabilities		17	38	24
Deferred tax liabilities		26	27	26
Provisions		0	0	0
Total non-current liabilities		43	65	51
Current liabilities
Leasing liabilities		30	30	30
Trade payables		99	89	81
Other current liabilities	5	214	187	181
Total current liabilities		343	306	292
Total equity and liabilities		1,054	1,110	970

Condensed consolidated statement of changes in equity

						Total equity
					Retained earnings	attributable to
			Other capital		including profit/loss	shareholders of the
SEKm	Share capital	Treasury shares		contributions Translation reserve	for the year	Parent Company
Opening balance 2023-01-01	2	—	814	5	-101	719
Profit/loss for the year	—	—	—	—	15	15
Other comprehensive income for the year	—	—	—	2	4	6
Total comprehensive income for the year	—	—	—	2	18	20
Closing balance 2023-06-30	2	—	814	7	-83	739
Opening balance 2024-01-01	2	—	814	5	-193	627
Profit/loss for the year	—	—	—	—	39	39
Other comprehensive income for the year	—	—	—	-2	3	2
Total comprehensive income for the year	—	—	—	-2	42	40
Total	—	0	0	—	—	0
Closing balance 2024-06-30	2	0	814	3	-151	668

Condensed consolidated statement of cash flow

			Apr-Jun	Jan-Jun		Jul 2023-	Jan-Dec
SEKm	Note	2024	2023	2024	2023	Jun 2024	2023
Operating activities
Operating profit		17	2	24	-19	-68	-111
Adjustments for non-cash items¹		19	15	40	34	129	122
Paid interest		-1	-1	-2	-3	-4	-5
Realised currency derivatives		1	1	2	4	7	9
Received interest		2	0	4	0	6	3
Paid/received tax		-1	-1	-2	-1	3	3
Cash flow from operating activities before changes in net
working capital		37	17	65	15	72	21
Changes in net working capital		57	56	93	34	165	105
Cash flow from operating activities		93	73	158	48	237	127
Investing activities
Investments in non-current assets		0	-2	-2	-3	-6	-8
Paid/received blocked funds		-2	—	-2	0	-2	0
Cash flow from investing activities		-3	-2	-4	-3	-8	-8
Financing activities
Share issue costs		0	—	0	—	0	—
Repayment of leasing liabilities		-7	-7	-14	-14	-29	-28
Cash flow from financing activities		-7	-7	-14	-14	-29	-28
Cash flow for the period		83	64	140	31	200	91
Cash and cash equivalents at the beginning of period		278	105	222	136	179	136
Exchange rate difference in cash and cash equivalents		-11	10	-12	12	-29	-4
Cash and cash equivalents end of period		350	179	350	179	350	222

¹ Adjustments for non-cash items refer in all significance to amortisation and depreciation and changes in current short term provisions. In the last twelve months' period and the last year the item was affected by goodwill impairment of SEK 17 million and by a provision for slow moving inventory of SEK 44 million.

Condensed Parent Company statement of profit/loss

	Apr-Jun		Jan-Jun		Jan-Dec
SEKm	2024	2023	2024	2023	2023
Net revenue	5	5	10	10	21
Gross profit	5	5	10	10	21
Administration costs	-5	-9	-10	-14	-25
Operating profit	0	-4	0	-4	-5
Financial net	6	6	11	12	24
Profit/loss after financial items	5	2	11	8	19
Appropriations	—	—	—	—	-19
Profit/loss before tax	5	2	11	8	0
Tax	—	—	—	—	—
Profit/loss for the period	5	2	11	8	0

Profit/loss for the period equals comprehensive income for the period.

Condensed Parent Company balance sheet

	Jun 30	Jun 30	Dec 31
SEKm	2024	2023	2023
Assets
Non-current assets
Shares in group companies	409	334	409
Receivables from group companies	342	416	350
Total non-current assets	751	750	759
Current assets
Receivables from group companies	2	2	—
Other current assets	1	1	1
Cash and cash equivalents	3	3	4
Total current assets	6	6	5
Total assets	757	756	763
Equity and liabilities
Total equity	750	747	739
Current liabilities
Liabilities to group companies	—	—	16
Other current liabilities	7	9	9
Total current liabilities	7	9	24
Total equity and liabilities	757	756	763

Note 1 - Accounting principles

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU. The Group's Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting and the applicable parts of the Swedish Annual Accounts Act.

The Interim Report for the Parent Company has been prepared in accordance with Chapter 9 of the Annual Accounts Act, Interim reports, and RFR 2 Accounting for legal entities.

For the Group and the Parent Company, the same accounting principles, basis for calculations and assessments have been applied as applied in the Annual Report for 2023. For a description of the Group's applied accounting principles, see Note 1 and Note 2 in the Annual Report for 2023.

Disclosures in accordance with IAS 34.16A are shown in the financial statements and associated Notes in this information, in addition to pages 1–13 which form an integral part of this interim report.

All amounts in this report are stated in millions of Swedish kronor (SEKm) unless stated otherwise. Rounding variances may occur.

Information on future standards

A few standards and interpretations have been updated since January 1, 2024. These have had no impact on the preparation of these financial statements. None of the IFRS or IFRIC interpretations that are yet to come into force are expected to have any significant impact on the Group.

Note 2 - Estimations and assessments

The preparation of the Interim Report requires that the Company's management make assessments and estimates, as well as assumptions that affect the application of the accounting principles and the reported amounts of assets, liabilities, income and expenses. The actual outcome may differ from these estimates. Changes in estimates are recognised in the period in which the change occurs, if the change affected only that period, or in the period in which the change is made and future periods if the change affects both the current period and future periods.

Important estimations and assessments can be found in Note 2 in the 2023 Annual Report. No changes have been made to these estimations and assessments that could have a significant impact on the interim report.

Note 3 – Revenue

The Group's revenue consists of the sale of goods via the Group's websites and, until the end of 2023, a physical store (reported among other revenues under the Segment "Other, Sweden"). Revenue is reported at a given point in time due to the fact that the conditions for control being transferred over time are not met. In addition to the segments, geographical area is also an important attribute when specifying revenue, and this is presented in the table below.

		Apr-Jun	Jan-Jun		Jul 2023-	Jan-Dec
SEKm	2024	2023	2024	2023	Jun 2024	2023
Sweden	30	28	46	45	92	91
Other Nordics	30	30	47	49	99	100
Outside the Nordics	205	190	388	362	787	761
Revenue Offroad	264	248	481	456	977	952
Sweden	40	39	58	55	88	86
Other Nordics	66	63	96	90	148	142
Outside the Nordics	81	81	139	140	267	268
Revenue Onroad	186	183	293	285	504	496
Sweden	2	5	19	24	44	49
Other Nordics	3	5	20	22	38	40
Outside the Nordics	—	—	—	—	—	—
Revenue Other	6	10	38	45	82	89
Sweden	72	72	122	123	224	225
Other Nordics	99	98	163	160	285	283
Outside the Nordics	285	271	527	502	1,054	1,029
Revenue Group	456	441	812	786	1,563	1,537

Note 4 - Segment reporting

		Apr-Jun	Jan-Jun		Jul 2023-	Jan-Dec
SEKm	2024	2023	2024	2023	Jun 2024	2023
Offroad	264	248	481	456	977	952
Onroad	186	183	293	285	504	496
Other	6	10	38	45	82	89
Net revenue	456	441	812	786	1,563	1,537
Offroad	124	111	228	197	424	393
Onroad	76	71	118	108	188	178
Other	3	4	18	18	37	37
Intra-group costs	-1	0	-1	0	-1	-1
Gross profit	201	186	364	323	648	607
Offroad	-55	-52	-103	-99	-209	-205
Onroad	-41	-43	-66	-69	-119	-122
Other	-2	-2	-9	-13	-19	-23
Variable sales and distribution costs¹	-98	-98	-178	-181	-348	-351
Offroad	69	59	125	98	215	188
Onroad	34	28	52	39	69	55
Other	1	2	9	5	17	14
Intra-group costs	-1	0	-1	0	-1	-1
Profit after variable costs¹ ²	104	88	186	142	300	256
Other expenses in the operation¹ ³	-87	-86	-162	-161	-368	-367
Operating profit	17	2	24	-19	-68	-111
Financial net³	-2	25	16	33	-5	13
Pre-tax income	14	27	40	14	-73	-98

¹ Alternative performance measures (APM), see pages 23-25 for definitions and purpose of these measurements.

³ Other expenses in the operation and financial net regards intra-group costs. Other direct costs mainly consist of freight, invoicing and packaging.

Pierce sells motorcycle and snowmobile gear, parts and accessories. The operating segments into which the Group's operations are divided are:

Offroad: sales to motocross and enduro riders under the 24MX brand.
Onroad: sales to customers who ride motorcycles on high roads. Sales are under the XLMOTO brand.
Other: sales to snowmobile riders under the Sledstore brand and sales via a physical store in Stockholm.

▪ Intra-group transactions:

Intra-group transactions included under Gross profit and Profit after variable costs refer to the revaluation of net working capital items, mainly included in cost of goods sold. These items are not allocated to segments.
Intra-group costs, after Profit after variable costs, refers to expenses for group-wide functions, such as central administration, which are not allocated to segments.

No information is provided on segment assets or liabilities as no separate segmentation is performed in reporting the consolidated financial position.

Note 5 - Financial instruments, fair value

Currency derivatives are the only instruments reported at fair value through profit/loss. Other financial instruments are valued at amortised cost in the statement of financial position, and the reported values corresponded in all material respects with the fair value.

In accordance with IFRS 13, last year the asset regarding the currency derivatives was attributable to level 2 in the fair value hierarchy.

Note 6 - Related party transactions

Other related party transactions

During the current interim period Pierce purchased goods (for resale in its ordinary business) from O'Neal Europe GmbH & Co. KG, a company controlled by Pierce Group AB Board Member Thomas Schwarz, for SEK 11 (6) million. Thomas Schwarz is a Board Member since June 2022, therefore O'Neal Europe GmbH & Co. KG was recognised as a related party since the second quarter 2022.

All transactions with this supplier were performed on commercial market terms.

There were no other related party transactions in the current and previous interim periods.

See Note 29 in the Annual Report for 2023 for more information.

Note 7 - Pledged assets and contingent liabilities

In conjunction with the listing, the previous financing structure was replaced by a SEK 300 million credit facility, which was first reduced during the second quarter of 2022 to SEK 200 million in connection with new share issue. During the second quarter of 2023 the credit facility was further reduced by agreement to SEK 150 million. At the end of the interim period Pierce had not utilised the credit facility, holding a positive cash position. There is a guarantee granted for the The valuation of currency derivatives is based on official market data for exchange rates. At the end of the period, the fair value amounted to SEK 0 (4) million and these derivatives have been classified as current assets.

Warrant program

The Group has a warrant program as a part of an incentive program for certain senior executives and key employees in the Group. See page 11 for further information.

All transactions are based on market terms and conditions.

Performance-based share program

The Group has a performance-based share program as a part of an incentive program for certain senior executives and key employees in the Group. See page 11 for further information.

All transactions are based on market terms and conditions.

	Jun 30	Jun 30	Dec 31
SEKm	2024	2023	2023
To credit institutions for the Group's own liabilities and provisions
Deposits for fulfillment of payments	3	3	3
Paid blocked funds	2	—	—
Total pledged assets	5	3	3
¹ Utilised credit facility refers to utilised overdraft, which does not include obtained loan or capitalised loan and interest expenses.

credit facility to credit institutions provided by the Parent Company, Pierce Group AB, for the liabilities of its subsidiary, Pierce AB.

The credit facility includes certain financial covenants. See more information under the "Risks and factors of uncertainty" section, page 12.

Pledged assets at the end of the quarter referred to deposits paid.

Note 8 - Significant events after the end of the reporting period

No significant events took place after the end of the reporting period.

Alternative Performance Measures

Financial measures not defined in accordance with IFRS

Pierce applies financial measurements in its interim reports which are not defined in accordance with IFRS. The Company believes that these measurements provide valuable supplementary information to investors and the Company's management. As not all companies calculate Alternative Performance Measures in the same manner, these measures are not always comparable with measures used by other companies. These financial measurements should, therefore, not be seen to comprise a replacement for measures defined according to IFRS. Following a review of the alternative performance measures in the first quarter of 2024, the Company updated the definition of "Items affecting comparability" while also reclassifying an impairment of goodwill recognised in 2023 as an item affecting comparability. These changes were made to improve period-toperiod comparability, with a focus on better describing operational measures for Pierce.

Definitions

The interim report contains financial performance measures in accordance with the applied framework for financial reporting, which is based on IFRS. In addition, there are other performance measures and indicators which are used as a supplement to the financial information. These performance measures are applied to provide the Group's stakeholders with financial information for the purpose of analysing the Group's operations and goals. The various performance measures applied which are not defined according to IFRS are described below.

Financial Performance Measures – Group

Performance measure	Definition	Purpose
Adjusted EBITDA	EBITDA, excluding items affecting comparability.	This measure is used to measure the profit from the ongoing operations, excluding items affecting comparability, amortisation, depreciation and impairment.
Adjusted EBITDA (%)	Adjusted EBITDA in relation to net revenue.	The performance measure is used to assess the profitability generated by the ongoing operations, excluding items affecting comparability, amortisation, depreciation and impairment.
Adjusted EBITDA excluding IFRS 16	Operating profit (EBIT) excluding depreciation, amortisation and items affecting comparability, less rental costs for leasing agreements reported in the statement of financial position.	The measure aims to measure the profit generated by the ongoing operations, including expenses for office rent but excluding items affecting comparability, amortisation, depreciation and impairment.
	Rental costs essentially correspond to depreciation on right-of-use assets and interest expenses on leasing liabilities.
Adjusted operating margin (EBIT) (%)	Adjusted operating profit (EBIT) in relation to net revenue.	The performance measure is used to monitor the Company's profitability generated by the operating activities, including depreciation and amortisation, but excluding items affecting comparability.
Adjusted operating profit (EBIT)	Operating profit (EBIT) excluding items affecting comparability.	This measure is used to measure the profit generated by the ongoing operations, including amortisation, depreciation, and impairment, but excluding items affecting comparability.
Amortisation related to business acquisitions	Amortisation less amortisation excluding business acquisitions.	The purpose is to measure the performance measure's impact on operating profit (EBIT).
EBITDA	Operating profit (EBIT), excluding amortisation, depreciation, and impairment.	The measure is used to measure the profit generated by ongoing operations before amortisation, depreciation and impairment.
CAGR	Compound annual growth rate in percent over a given period.	The measure shows the Company's growth over time.
	The formula to calculate CAGR is: (ending value/starting value) ^ (1/number of years between the ending value and starting value)-1.
Gross margin (%)	Gross profit in relation to net revenue.	This measure is used to measure profitability after deduction of cost of goods sold.
Growth (%)	Net revenue for the period compared with net revenue during the corresponding period last year.	This performance measure makes it possible to analyse the Group's and the segments' growth in net revenue.

Performance measure	Definition	Purpose
Growth in local currencies (%)	Change in net revenue, adjusted for exchange rate changes and business acquisitions, in comparison with the corresponding period last year.	This measure enables follow-up of the development of net revenue excluding exchange rate effects and business acquisitions.
Growth per geographical area (%)	Net revenue for the period for a geographical area compared to net revenue for the same geographical area during the corresponding period last year.	This measure makes it possible to analyse net revenue growth for the Group specified according to geographical area.
Items affecting comparability	Items affecting comparability refers to material transactions lacking a clear connection to the ordinary operations, and which are not expected to occur regularly. These transactions include, for instance, advisory and integration costs in conjunction with business acquisitions, advisory and directly attributable costs in conjunction with essential restructuring or efficiency programs/projects, significant impairments or non-recurring value adjustments of assets, and share-based payments costs including related taxes (recognised under IFRS 2 and settled via issuing of shares).	This measure is excluded in calculating adjusted measures which are used to monitor the Company's underlying earnings trend over time.
Net debt/EBITDA	Net debt excluding IFRS 16 in relation to adjusted EBITDA excluding IFRS, during the last twelve months.	This measure is used to measure the debt/equity ratio and to follow up on Pierce's financial targets on capital structure.
Net debt excluding IFRS 16	Liabilities to credit institutions, decreased by cash and cash equivalents at the end of the period. Pierce's assessment of the Groups' actual net debt corresponds to liabilities to credit institutions, and that is why leasing liabilities are excluded.	This measure is used to monitor the indebtedness, financial flexibility, and capital structure.
Net working capital	Inventory and other operating assets less other operating liabilities.	This measure is used to analyse the Company's short term tied up capital.
Net working capital (%)	Net working capital in relation to net revenue.	This measure is a measure of how efficiently working capital is managed.
Operating cash flow	Cash flow from the ongoing operations, excluding paid interest, realised currency derivatives and tax paid/received, with deduction for investments in non-current assets, repayment of leasing liabilities and interest expenses on leasing liabilities.	This measure shows the underlying cash flow generated from the operating activities.
Other cash flow	Cash flow from financing activities, excluding net changes in loans and repayment of leasing liabilities, less realised currency derivatives, and tax paid/received as well as interest, less interest expenses on leasing liabilities.	This measure is used, together with operating cash flow, received/paid blocked funds and net changes in loans, to calculate the cash flow for the period.
Other non-cash items	Non-cash items less repayment of leasing liabilities and interest expenses on leasing liabilities.	This measure excludes other non-cash flow impacting items and is used to calculate the operating cash flow.
Other operating costs	Overhead costs, amortisation, depreciation, impairment and items affecting comparability.	This measure shows the costs for intra-Group functions such as central administration costs which are not distributed over segments.
Overhead costs	Operating costs, excluding variable sales and distribution costs, amortisation, depreciation, impairment and items affecting comparability. Operating costs refer to sales and distribution costs, administration costs, and other operating revenue and costs.	Costs that are not allocated to segments, but which each segment contributes to cover. These costs are largely fixed and semi-fixed. The measure is used to calculate the scalability of this part of the cost mass, see overhead costs (%) below for more information.
Overhead costs (%)	Overhead costs in relation to net revenue.	This measure shows the scalability of the Company's semi-fixed and fixed cost structure.
Profit after variable costs	Gross profit less variable sales and distribution costs.	The measure is used to measure contribution after all variable costs.

Performance measure	Definition	Purpose
Profit after variable costs (%)	Profit after variable costs in relation to net revenue.	This measure is used to illustrate profitability after deduction of all variable costs.
Variable sales and distribution costs	Sales and distribution costs less non-variable sales and distribution costs. Variable sales and distribution costs refer to direct marketing costs and other direct costs. Other direct costs essentially include costs for shipping to end customer, invoicing and packaging.	This measure is monitored at Group and segment level in order to calculate results after variable costs.

Operating performance measures – Group

Performance measure	Definition	Purpose
Active customers during the last 12 months	Number of customers making purchases on at least one occasion during the last 12 months in one of the online stores.	This measure is primarily relevant at segment level and illustrates the number of individual customers choosing to order goods on several occasions, which shows the
	One customer can be counted several times if they make purchases in different stores or use different personal identifiers.	Company's capability to attract customers.
Average order value (AOV)	Net revenue for the period divided by number of orders.	This measure is used as an indicator of revenue generation per customer.
Net revenue from private brands	Net revenue for the period less net revenue for the period from external brands and net revenue not attributable to brands such as revenue from freight and accrued income.	Interesting to follow over time as these products are unique and can often be sold at attractive prices and at a relatively high gross margin.
Number of orders	Number of orders handled during the period.	This measure is used to measure customer activity generating sales.

Reconciliation of Alternative Performance Measures from statement of profit/loss

		Apr-Jun	Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Gross profit	201	186	364	323	648	607
Variable sales and distribution costs	-98	-98	-178	-181	-348	-351
Profit after variable costs	104	88	186	142	300	256

Operating profit (EBIT)	17	2	24	-19	-68	-111
Reversal of depreciation and amortisation	18	14	34	28	64	58
Reversal of items affecting comparability below EBITDA	—	—	—	—	17	17
EBITDA	34	17	57	9	12	-36

Reversal of items affecting comparability	0	4	0	4	22	26
Adjusted EBITDA	35	21	58	13	34	-11

Operating profit (EBIT), past twelve months	-68	-65	-68	-65	-68	-111
Reversal of depreciation and amortisation, past twelve months	64	53	64	53	64	58
Reversal of items affecting comparability, past twelve months	21	18	21	18	21	26
Reversal of items affecting comparability below EBITDA, past twelve months	17	—	17	—	17	17
Rental costs, past twelve months, regarding leasing agreements reported	-32	-28	-32	-28	-32	-32
in the statement of financial position¹
Adjusted EBITDA excluding IFRS 16 ¹ Refers in all significance to depreciation of right-of-use assets and interest expenses on leasing liabilities.	2	-22	2	-22	2	-42

Operating profit (EBIT)	17	2	24	-19	-68	-111
Reversal of items affecting comparability	0	4	0	4	38	42
Adjusted operating profit (EBIT)	17	6	24	-15	-30	-69

Sales and distribution costs	-137	-136	-253	-254	-505	-505
Reversal of non-variable sales and distribution costs	40	38	75	73	157	155
Variable sales and distribution costs	-98	-98	-178	-181	-348	-351

Sales and distribution costs	-137	-136	-253	-254	-505	-505
Administration costs	-47	-49	-90	-90	-211	-212
Other operating income and expenses	0	1	3	2	0	-1
Operating costs	-185	-183	-340	-342	-716	-718
Reversal of variable sales and distribution costs	98	98	178	181	348	351
Other expenses in the operation	-87	-86	-162	-161	-367	-367
Reversal of depreciation and amortisation	18	14	34	28	64	58
Reversal of items affecting comparability	0	4	0	4	22	26
Reversal of items affecting comparability below EBITDA	—	—	—	—	17	17
Overhead costs	-69	-67	-128	-129	-266	-267

Amortisation	-9	-6	-17	-12	-30	-25
Reversal of amortisation excluding business acquisitions	7	6	13	11	9	7
Amortisation related to business acquisitions	-2	0	-3	0	-21	-18

Restructuring expenses	0	-3	0	-3	-21	-25
Share-based payments	0	-1	0	-1	0	-1
Share-based payments (social costs)	0	—	0	—	0	0
Other	—	0	—	0	—	0
Items affecting comparability	0	-4	0	-4	-22	-26
Goodwill amortisation					-17	-17
Items affecting comparability below EBITDA	— —	— —	— —	— —	-17	-17

Reconciliation of Alternative Performance Measures from statement of financial position

		Apr-Jun		Jan-Jun		Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Inventory	307	459	307	459	307	344
Other current assets	29	41	29	41	29	15
Current tax receivables	-2	-8	-2	-8	-2	-1
Current investments	0	-4	0	-4	0	—
Other current operating assets	27	28	27	28	27	14
Trade payables	-99	-89	-99	-89	-99	-81
Other current liabilities	-214	-187	-214	-187	-214	-181
Reversal of:
Current tax liabilities	2	2	2	2	2	2
Current provisions	14	13	14	13	14	8
Other current operating liabilities	-297	-260	-297	-260	-297	-251
Net working capital	37	227	37	227	37	107
Cash and cash equivalents	-350	-179	-350	-179	-350	-222
Net debt excluding IFRS 16¹	-350	-179	-350	-179	-350	-222
Net debt excluding IFRS 16 (A)¹	-350	-179	-350	-179	-350	-222
Adjusted EBITDA excluding IFRS 16, past twelve months (B)	2	-22	2	-22	2	-42
Net debt/EBITDA (A) / (B)	-216.7	8.3	-216.7	8.3	-216.7	5.2

¹Positive values refer to net debt, whereas negative values refer to net asset

Reconciliation of Alternative Performance Measures from statement of cash flow

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Cash flow from operating activities	93	73	158	48	237	127
Investments in non-current assets	0	-2	-2	-3	-6	-8
Repayment of leasing liabilities	-7	-7	-14	-14	-29	-28
Interest expenses on leasing liabilities	-1	-1	-1	-2	-3	-3
Reversal of:
Paid interest	1	1	2	3	4	5
Realised currency derivatives	-1	-1	-2	-4	-7	-9
Received interest	-2	0	-4	0	-6	-3
Paid/received tax	1	1	2	1	-3	-3
Operating cash flow	83	64	140	30	188	78
Adjustments for non-cash items¹	19	15	40	34	129	122
Repayment of leasing liabilities	-7	-7	-14	-14	-29	-28
Interest expenses on leasing liabilities	-1	-1	-1	-2	-3	-3
Other non-cash items	11	8	24	18	97	91
Cash flow from financing activities	-7	-7	-14	-14	-29	-28
Paid interest	-1	-1	-2	-3	-4	-5
Realised currency derivatives	1	1	2	4	7	9
Received interest	2	0	4	0	6	3
Paid/received tax	-1	-1	-2	-1	3	3
Reversal of:
Interest expenses on leasing liabilities	1	1	1	2	3	3
Repayment of leasing liabilities	7	7	14	14	29	28
Other cash flow	2	0	3	2	14	13

Reconciliation of other Alternative Performance Measures

	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Net revenue (A)	456	441	812	786	1,563	1,537
Number of orders (thousands) (B)	416	429	760	783	1,434	1,456
Average order value (AOV) (SEK) (A) / ((B) / 1,000)	1,097	1,028	1,069	1,004	1,090	1,055
Net revenue	456	441	812	786	1,563	1,537
Reversal of net revenue from external brands	-257	-235	-464	-426	-857	-818
Non-branded net revenue	-15	-19	-21	-28	-71	-78
Net revenues from private brands	185	187	327	332	635	640
Reconciliation of Alternative Performance Measures concerning growth
	Apr-Jun		Jan-Jun		Jul 2023-	Jan-Dec

Reconciliation of Alternative Performance Measures concerning growth

Apr-Jun		Jan-Jun
SEKm (unless stated otherwise)	2024	2023	2024	2023	Jun 2024	2023
Net revenue for the period (A)	456	441	812	786	1,563	1,537
Net revenue for the period previous year (B)	441	450	786	870	1,585	1,670
Growth (%) (A) / (B) -1	3%	-2%	3%	-10%	-1%	-8%
Net revenue for the period in local currencies¹ (A)	449	420	801	748	1,504	1,453
Net revenue for the period previous year (B)	441	450	786	870	1,585	1,670
Growth in local currencies (%) (A) / (B) -1 ¹ Net revenue for both the period and the period last year in local currencies, converted to SEK using previous year's exchange rates.	2%	-7%	2%	-14%	-5%	-13%
Net revenue Nordics for the period (A)	171	170	285	284	509	508
Net revenue Nordics for the period previous year (B)	170	177	284	323	528	567
Growth Nordics (%) (A)/(B) -1	0%	-4%	0%	-12%	-4%	-10%
Net revenue outside the Nordics for the period (A)	285	271	527	502	1,054	1,029
Net revenue outside the Nordics for the period previous year (B)	271	273	502	548	1,057	1,103
Growth outside the Nordics (%) (A) / (B) -1	5%	-1%	5%	-8%	-0%	-7%
Net revenue (A)	456	441	812	786	1,563	1,537
Net revenue, 2 years ago (B)	450	451	870	820	1,645	1,594
Number of years calculated (C)	2	2	2	2	2	2
CAGR (%) ((A) / (B)) ^(1 / (C)) -1	1%	-1%	-3%	-2%	-3%	-2%

Corp. ID number: 556967–4392 Elektravägen 22 | 126 30 Hägersten | Sweden www.piercegroup.com

AI Terminal

Pierce Group

3096_ir_2024-08-23_c9affe50-609e-4c60-b732-f832432365d6.pdf

PIERCE GROUP AB (publ)

Continued improvement

April – June 2024 January – June 2024

Significant events during the reporting period

CEO comments

Performance measures – Group

Pierce – Riders in eCommerce

Comments to the Group's profit/loss for the period

April – June 2024

Net revenue

Gross profit and gross margin

Operating costs

Adjusted EBIT and EBIT

Financial items

Taxes and result for the period

January – June 2024 Net revenue

Gross profit and gross margin

Operating costs

Adjusted EBIT and EBIT

Financial items

Taxes and results for the period

Comments to the Group's cash flow

Comments to the Group's financial position

Net working capital

Right-of-use assets and leasing liabilities

January – June 2024

Net debt / net asset and credit facility

Equity

Development per segment

(Figures in parentheses refer to the equivalent period last year)

Overall summary

Offroad

April – June 2024

January – June 2024

Onroad

April – June 2024

January – June 2024

Other

April – June 2024

January – June 2024

The Pierce Share

LTIP 2021/2024

LTIP 2023/2026

LTIP 2024/2027

Significant events during the reporting period

Significant events after the end of the reporting period

Impact of currency effects

Employees

Seasonal variations

Parent Company

Risks and factors of uncertainty

Related party transactions

Medium to long term financial targets

Net revenue growth

Adjusted operating margin (EBIT)

Capital structure

Dividend policy

Other

21 February 2025

16 May 2025

Telephone and web conference in conjunction with the publication of quarterly report

Contact information, Pierce

Signatures

Condensed consolidated statement of profit/loss

Consolidated statement of comprehensive income

Condensed consolidated statement of financial position

Condensed consolidated statement of changes in equity

Condensed consolidated statement of cash flow

Condensed Parent Company statement of profit/loss

Condensed Parent Company balance sheet

Note 1 - Accounting principles

Information on future standards

Note 2 - Estimations and assessments

Note 3 – Revenue

Note 4 - Segment reporting

▪ Intra-group transactions:

Note 5 - Financial instruments, fair value