Puuilo Oyj — Interim / Quarterly Report 2021

Sep 9, 2021

Puuilo Plc

HISTORICAL FINANCIAL INFORMATION 1 FEBRUARY 2020 – 31 JANUARY 2021

This historical financial information of Puuilo Group for the half-year periods 1 February – 31 July 2020 and 1 August 2020 – 31 January 2021 has been prepared in accordance with the same accounting principles as the Consolidated Financial Statements on 31 January 2021. The information for the half-year periods is unaudited. Figures are in millions of euros unless otherwise stated. The figures presented here are rounded, so the sum total of the individual figures may differ from the sum figure shown.

Consolidated Statement of Comprehensive Income

EUR million	1 Feb 2020 - 31 Jul 2020	1 Aug 2020 - 31 Jan 2021	1 Feb 2020 - 31 Jan 2021
Net sales	123.9	114.8	238.7
Other operating income	0.0	0.5	0.6
Materials and services	-78.4	-73.2	-151.6
Personnel expenses	-11.3	-11.3	-22.7
Other operating expenses	-6.9	-6.9	-13.8
Depreciation, amortization and impairments	-4.7	-5.0	-9.7
Operating profit	22.6	18.9	41.5
Finance income	0.0	0.0	0.0
Finance costs	-2.8	-2.8	-5.5
Total finance income and costs	-2.8	-2.8	-5.5
Profit before taxes	19.8	16.1	36.0
Current income tax	-3.9	-3.6	-7.5
Deferred income tax	-0.1	0.4	0.3
Total income tax expense	-4.0	-3.2	-7.2
Profit for the period	15.9	12.9	28.8
Total comprehensive income for the period	15.9	12.9	28.8
Profit for the period attributable to:
Owners of the parent	15.9	12.9	28.8
Profit for the period	15.9	12.9	28.8
Total comprehensive income attributable to:
Owners of the parent	15.9	12.9	28.8
Earnings per share for net profit attributable to owners of the parent
Basic and diluted earnings per share (EUR)	0.20	0.16	0.36

Earnings per share has been calculated taking into account the free-of-charge share issue executed during the reporting period.

CLASSIFICATION: CONFIDENTIAL

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Consolidated Balance Sheet

EUR million	31 Jul 2020	31 Jan 2021
ASSETS
Non-current assets
Goodwill	33.5	33.5
Intangible assets	18.3	18.2
Property, plant and equipment	2.2	2.2
Right-of-use assets	40.4	43.9
Deferred tax assets	0.4	0.6
Total non-current assets	94.8	98.5
Current assets
Inventories	54.7	58.5
Trade receivables	2.9	4.2
Other receivables	1.4	1.1
Cash and cash equivalents	26.2	11.2
Total current assets	85.2	74.9
Total assets	180.0	173.4
EUR million	31 Jul 2020	31 Jan 2021
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Equity and liabilities
Equity
Share capital	0.0	0.0
Reserve for invested unrestricted equity	2.0	0.0
Retained earnings	-7.8	-21.1
Profit for the period	15.9	28.1
Total equity attributable to owners of the parent	10.0	6.9
Total equity	10.0	6.9
Liabilities
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Non-current liabilities
Loans from financial institutions	85.2	79.9
Lease liabilities	32.9	35.8
Provisions	0.6	0.6
Deferred tax liabilities	3.8	3.6
Total non-current liabilities	122.4	119.9
Current liabilities
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Loans from financial institutions	9.0	10.0
Lease liabilities	6.4	7.2
Trade payables	17.1	15.2
Advances received	0.1	0.2
Income tax liabilities	4.4	3.5
Other current liabilities	10.6	10.5
Total current liabilities	47.6	46.6
Total liabilities	170.1	166.5
Total equity and liabilities	180.0	173.4

CLASSIFICATION: CONFIDENTIAL

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Consolidated Statement of Cash Flows

EUR million	1 Feb 2020 - 31 Jul 2020	1 Aug 2020 - 31 Jan 2021	1 Feb 2020 - 31 Jan 2021
Cash flows from operating activities
Profit for the period	15.9	12.9	28.8
Adjustments for:
Depreciation, amortization and impairments	4.7	5.0	9.7
Gains/losses on disposal of tangible assets	0.0	-0.3	-0.3
Finance income and costs	2.8	2.8	5.5
Income tax expense	4.0	3.2	7.2
Changes in working capital
Change in trade and other receivables	-1.3	-0.9	-2.2
Change in inventories	-4.5	-3.8	-8.3
Change in trade and other current non-interest-bearing liabilities	9.4	-1.9	7.5
Interests paid	-1.6	-1.7	-3.3
Interests of lease liabilities	-0.6	-0.6	-1.2
Interests received	0.0	0.0	0.0
Arrangement fees for loans from financial institutions and other financial costs	-1.7	-0.3	-2.0
Income taxes paid	0.0	-4.6	-4.6
Net cash flows generated from operating activities	27.0	10.0	37.0
Cash flows from investing activities
Payments of property, plant and equipment	-1.4	-0.7	-2.1
Payments of intangible assets	-0.1	-0.8	-0.9
Proceeds from sale of property, plant and equipment	0.0	0.3	0.3
Net cash used in investing activities	-1.4	-1.2	-2.6
Cash flows from financing activities
Proceeds from loans from financial institutions	100.0	0.0	100.0
Repayments of loans from financial institutions	-69.8	-4.5	-74.3
Principal elements of lease liabilities	-3.1	-3.3	-6.4
Dividends	-36.1	-14.0	-50.1
Return of capital	0.0	-2.0	-2.0
Net cash used in financing activities	-9.1	-23.8	-32.9
Net increase (+)/(-) decrease in cash and cash equivalents	16.5	-15.0	1.5
Cash and cash equivalents at the beginning of the period	9.7	26.2	9.7
Cash and cash equivalents at the end of period	26.2	11.2	11.2

CLASSIFICATION: CONFIDENTIAL

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Key Figures

EUR million	1 Feb 2020 - 30 Apr 2020	1 May 2020 - 31 Jul 2020	1 Aug 2020 - 31 Oct 2020	1 Nov 2020 - 31 Jan 2021	1 Feb 2020 - 31 Jan 2021
Net sales	48.1	75.8	60.7	54.1	238.7
Net sales development (%)	43.0 %	49.8 %	33.6 %	32.5 %	40.0 %
Like-for-like store net sales development (%)	24.5 %	33.1 %	19.0 %	19.4 %	24.4 %
Online store net sales development (%)	202.8 %	108.9 %	89.0 %	132.0 %	127.5 %
Gross Profit	17.8	27.7	22.1	19.5	87.1
Gross Margin (%)	37.0 %	36.5 %	36.5 %	36.0 %	36.5 %
Adjusted EBITA*	7.5	16.1	11.2	8.5	43.2
Adjusted EBITA margin (%)	15.6 %	21.2 %	18.4 %	15.7 %	18.1 %
EBITA	7.3	15.9	11.1	8.4	42.6
EBITA margin (%)	15.1 %	21.0 %	18.2 %	15.6 %	17.9 %
EBIT	7.0	15.6	10.8	8.1	41.5
EBIT margin (%)	14.5 %	20.6 %	17.7 %	15.0 %	17.4 %
Net income	4.6	11.2	7.6	5.4	28.8
EPS (EUR)	0.06	0.14	0.09	0.07	0.36
Operating free cash flow	6.6	19.6	4.0	8.5	38.8
Net debt / adjusted EBITDA	3.4	2.4	2.2	2.4	2.4
Number of stores	29	29	29	30	30
Number of personnel converted into full-time employees (FTE)	536	650	603	589	595

• Operating profit before the amortization of Puuilo trademark

Earnings per share has been calculated taking into account the free-of-charge share issue executed during the reporting period.

Calculation of Key Figures

Puuilo uses alternative performance measures to reflect the business performance and profitability. These indicators should be examined together with the IFRS-compliant performance indicators.

Like-for-like store net sales development is used to reflect changes in Puuilo's business volume between periods. The indicator reflects the change in net sales excluding the impact of new stores. Comparable stores include the stores that have existed during both the review period and the comparison period.

Performance indicators reflecting comparable profit and profitability are used to improve the comparability of operational performance between periods. Items affecting comparability include unusual material items outside the ordinary course of the business. These unusual expenses relate to listing expenses, strategic development projects and administration.

In addition, financial performance indicators for the Group have been presented as alternative performance measures. The management uses these indicators to monitor and analyse business performance, profitability and financial position.

Key figure	Definition
Like-for-like store net sales development (%)	Like-for-like store net sales development is calculated as the net sales development of the like-for-like stores that are not seen as new stores on a net basis.

CLASSIFICATION: CONFIDENTIAL

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CLASSIFICATION: CONFIDENTIAL

	According to Puuilo's definition a store is considered as a new store during the opening year and the following financial year after the opening. As per net basis Puuilo deducts the stores that are closed during the financial year from the new stores.
Online net sales development (%)	Change in online store net sales for the period divided by online store net sales for the previous period
Gross profit	Net sales – materials and services
Gross margin (%)	Gross profit as percentage of net sales
EBITA	Operating profit before the amortization of Puuilo trademark
EBITA margin (%)	EBITA as percentage of net sales
Adjusted EBITA	EBITA before items affecting comparability
Adjusted EBITA margin (%)	Adjusted EBITA as percentage of net sales
EBIT (operating profit)	Profit before income taxes, finance income and finance costs (operating profit)
EBIT margin (%)	EBIT as percentage of net sales
Earnings per share (basic and diluted) (EUR)	Earnings per share have been calculated by dividing the profit for the financial year according to the consolidated income statement by the weighted average number of shares issued. The number of shares used in the calculation of earnings per share includes the shares issued in the free-of-charge share issue executed during the financial year 2021.
Operating free cash flow	Adjusted EBITDA – depreciation of right-of-use assets – change in net working capital in cash flow statement – net capital expenditure
Net debt / Adj. EBITDA	Interest-bearing liabilities (loans from financial institutions + lease liabilities) – cash and cash equivalents divided by annualised adjusted EBITDA
EBITDA	Operating profit before depreciation, amortisation and impairment
Adjusted EBITDA	EBITDA before items affecting comparability, rolling 12 months

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Reconciliation of certain alternative performance measures

EUR million	1 Feb 2020 - 30 Apr 2020	1 May 2020 - 31 Jul 2020	1 Aug 2020 - 31 Oct 2020	1 Nov 2020 - 31 Jan 2021	1 Feb 2020 - 31 Jan 2021
Items affecting comparability
Strategic projects	0,2	0,1	0,1	0,1	0,5
Administration fees	0,0	0,0	0,0	0,0	0,1
Items affecting comparability	0,2	0,1	0,1	0,1	0,6
Gross Profit
Net sales	48,1	75,8	60,7	54,1	238,7
Materials and services	30,3	48,1	38,6	34,6	151,6
Gross Profit	17,8	27,7	22,1	19,5	87,1
EBITA and adjusted EBITA
Operating profit	7,0	15,6	10,8	8,1	41,5
Trademark depreciations	0,3	0,3	0,3	0,3	1,1
EBITA	7,3	15,9	11,1	8,4	42,6
Items affecting comparability	0,2	0,1	0,1	0,1	0,6
Adjusted EBITA	7,5	16,1	11,2	8,5	43,2
Operating free cash flow
Adjusted EBITDA	9,4	18,2	13,3	10,8	51,8
Net capital expenditure	-0,8	-0,6	-0,7	-0,5	-2,6
Depreciation of right-of-use assets	-1,7	-1,9	-1,9	-1,9	-7,4
Changes in working capital	-0,3	3,9	-6,8	0,2	-3,0
Operating free cash flow	6,6	19,6	4,0	8,5	38,8
Net debt / Adj. EBITDA
Net debt	124,6	107,3	106,7	121,8	121,8
Adjusted EBITDA	37,0	44,3	49,0	51,8	51,8
Net debt / Adj. EBITDA	3,37	2,43	2,18	2,35	2,35
EBITDA and Adjusted EBITDA
Operating profit	7,0	15,6	10,8	8,1	41,5
Depreciation, amortization and impairments	2,3	2,5	2,5	2,6	9,7
EBITDA	9,2	18,1	13,2	10,7	51,2
Items affecting comparability	0,2	0,1	0,1	0,1	0,6
Adjusted EBITDA	9,4	18,2	13,3	10,8	51,8

CLASSIFICATION: CONFIDENTIAL