RVRC Holding — Earnings Release 2022

Feb 8, 2022

RVRC HOLDING AB (publ)

Interim report, second quarter 2021/22

The interim report relates to the Group in which RVRC Holding AB (559129-4623) is the parent company, which in the report is called RevolutionRace. The interim report relates to October-December 2021 and the first six months 2021/22.

Second quarter (Oct-Dec 2021)

• Net sales for the period increased by 58 percent to SEK 391.7 (248.3) million.
• Operating profit (EBIT) increased by 76 percent and amounted to SEK 117.5 (66.8) million, corresponding to an EBIT margin of 28.9 (26.6) percent. Adjusted operating profit (EBIT) amounted to SEK 117.5 (67.9) million, corresponding to an adjusted EBIT margin of 28.9 (27.0) percent.
• Average net order value (AOV) was SEK 791 (773). The increase is primarily explained by a favourable market mix.
• Earnings per share before dilution amounted to SEK 0.82 (0.47) and after dilution SEK 0.82 (0.46).

Highlights during the quarter

• The strongest individual quarter in the company's history – net sales and profit.
• The launch in Switzerland in October exceeds expectations – now a total of 17 markets with local online shops.
• Launch of a, for the company, new product category in December – hiking shoes, sold out within two days and with very positive product reviews.
• Secured flow of goods and planned inventory ramp up, despite global supply strains.

Financial overview

	Oct-Dec	Oct-Dec		Jul-Dec	Jul-Dec		Jul-Jun	Jan-Dec
SEKm	21/22	20/21	Δ	21/22	20/21	Δ	20/21	2021
Net sales	391,7	248,3	58%	645,9	378,9	70%	897,1	1 164,1
Average order value (AOV), (SEK)*	791	773	2,4%	792	770	2,8%	763	776
Gross profit*	280,3	178,4	57%	464,2	270,5	72%	648,3	842,0
EBIT	117,5	66,8	76%	190,2	99,3	92%	230,4	321,4
Adjusted EBIT*	117,5	67,9	73%	190,2	100,4	90%	252,2	342,1
Result for the period	92,3	50,7	82%	148,8	74,7	99%	171,6	245,6
Earnings per share before dilution, SEK	0,82	0,47	74%	1,32	0,70	89%	1,59	-
Earnings per share after dilution, SEK	0,82	0,46	78%	1,32	0,68	94%	1,59	-
Gross profit margin*	71,6%		71,9% -0,3 pp	71,9%		71,4% 0,5 pp	72,3%	72,3%
EBIT margin	28,9%		26,6% 2,3 pp	28,6%	25,8% 2,8 pp		25,2%	26,9%
Adjusted EBIT margin*	28,9%	27,0%	1,9 pp	28,6%		26,1% 2,5 pp	27,6%	28,7%

RevolutionRace's financial year is July-June.

*Alternative performance measures, see pages 20-22.

Comment from the CEO RevolutionRace reports its strongest quarter yet. Growing by 58% and increasing EBIT to 117 MSEK.

I am happy and proud to be able to report the greatest individual quarter in the history of the company. Net sales for the quarter increased by 58% to 392 MSEK and adjusted EBIT increased by 73% to 117 MSEK. We have a continued very strong momentum with great sales growth, record high operating profit, improved adjusted operating margin, and increased average order value. This despite the continued pandemic related challenges. I can only be proud, and when we summarize the first six months, I notice that RevolutionRace delivered above expectations on all points. The company is better positioned than ever to continue capturing market shares and we are developing well in relation to the long-term financial targets.

RevolutionRace has built a strong brand that engages customers with an active lifestyle all over the world and we continue to exceed customer expectations with high quality products at reasonable prices. Our scalable business model, with direct sales to the end consumer, enables us not only to launch our products faster, but also at a lower cost than our competitors. The competitive price for the end consumer is one of several reasons to choose RevolutionRace, but above all else the consumers value the first-class design of our multi-functional clothes. In addition, we have built a committed community through unique communications that spotlight the content on our social and digital platforms. RevolutionRace's internal know-how is at the absolute cutting edge when it comes to generating informative, entertaining content, and mastering the everchanging digital landscape. Knowledge that is proven quarter by quarter.

First half-year – above the expectations

During the first six months we have substantially improved relevant KPIs. Net sales increased by 70%, gross profit by 72%, operating profit by 92% and average net order value by 3%. The adjusted EBIT margin increased by 2.5 percentage points to 28.6%. Also, the gross margin increased by 0.5 percentage points to 71.9%, despite disruptions in supply and logistics chain with increased freight prices as a consequence.

A continued very strong demand for the company´s multifunctional products, in established as well as in new markets, is the basis for a

fantastic first half-year which has exceeded our expectations.

Q2 – individually the strongest quarter so far

Net sales in the second quarter increased by 58% to SEK 392 million. Operating profit amounted to SEK 117 million and passed for the first time the milestone of hundred million in an individual quarter. Also, the adjusted EBIT margin was improved with 1.9 percentage points to 28.9% as a result of successful optimization of marketing campaigns, good operational efficiency, and cost control.

The substantial growth of 58% in Q2 follows a good sales development in general. During the quarter we also experienced a favourable trend in sales through Amazon and, in January, we relaunched a

limited product range on Amazon UK, a sales channel that previously was paused because of Brexit. The strategic choice of sales channel in the UK also brings an increased average net order value.

Given the positive development on Amazon in the quarter, we believe it will be possible to continue growing profitably on the platform.

Strong sales development in all regions

The sales in region DACH, including Germany, Austria and, since early in the quarter, also Switzerland, accounted for about half of our sales with growth of 98%. The whole region continues to develop very strongly with Germany as the engine. The launch in Switzerland exceeded expectations and has progressed to become one of RevolutionRace's strongest launches to date. The region has a somewhat higher price level than the average, contributing to the company's profitability trend. October's launch of the local online store in Switzerland means that RevolutionRace is now represented through local online shops in 17 markets, with sales in more than 35 countries in total.

The Nordic region accounted for slightly more than 30% of total sales and continues to grow at a double-digit rate, although at a slower pace than previously, which is partly a natural trend given that the Nordic region is the company's most mature market. It is worth noting that the region's growth rate at the start of the third quarter was higher than in the second quarter. The return to higher levels is in line with our long-term expectations for the region.

The Rest of the World region is growing as a share of total net sales and accounted for almost 20% of net sales in the second quarter, with a very good growth of 84%. The launch of our own Brand Store on Amazon in the US continues to develop well and is progressing as planned. The region includes several other markets that are relatively new for RevolutionRace and many of these are showing good development and are starting to make a meaningful contribution to total net sales.

Operational efficiency

In recent years, RevolutionRace has faced several challenges, including Brexit and the ongoing pandemic. The repercussions on the global supply and logistics chains remain complicated, with both long lead times and more expensive transports. RevolutionRace is also affected, and we believe the current situation will persist, at least during the third quarter of the company's financial year. If there is one thing of which I am particularly proud as CEO, it is how our organisation tackles the prevailing circumstances and adapts to them. Through hard work and timely efforts, the process of building up inventories continues to progress at our two warehousing and logistics centres. When issuing this report, we have good availability of the products in the online stores, with only individual more seasonal products being sold out. Despite these challenges, we improved both our operating profit and margin for the quarter by means of strong sales and good cost control in general.

Expansion through new product categories

We had the great pleasure, during the quarter, of introducing a completely new product category – shoes, which were an immediate success with the first delivery being sold out within two days. The interest and response from our customers have been tremendous with positive product reviews, bolstering our resolve to continue the investment. More shoes, in terms of both volume and models, will be available for sale as of the third quarter.

Growing through new product categories is part of RevolutionRace's overall growth strategy and, halfway through the third quarter, we will be launching another long-awaited product category – bags. The launch will progress in accordance with a previously proven model with lower initial volumes, to then be scaled up if the reception and reviews are favourable. Of course, the same demands apply for the category of bags as for all our products – multi-functionality at unmatched value.

Outleisure – a segment with several competitive advantages

RevolutionRace operates in the outleisure clothing segment – a combination of outdoor clothing and sports-inspired clothing. In 2020, the global market was valued at EUR 86.4 billion according to Euromonitor International. The Outleisure segment has several favourable attributes that make it attractive for direct online sales. In part, outdoor clothing is characterised by lower fashion risk, with many customer types being able to use the products, regardless of gender and age. Seasonal variations are also limited as garments are primarily used for a particular purpose, rather than usage being determined by the time of year in which an activity takes place. Combined with our full control of the brand, this entails lower risk in our business compared with many of our competitors, as we can both stock products for longer periods and adapt them to our customers' needs and wishes.

A Responsible Race

RevolutionRace's sustainability efforts are continuing, and we have formulated a clear sustainability strategy – "A Responsible Race". In October, we published our first formal sustainability report, which is available on our website. A key part of this is our focus on durable, high-quality products that last a long time and that can be used on a variety of occasions. Our business model also allows us to safeguard production entirely in line with demand, resulting in a uniquely low level of overproduction for the industry – benefiting both

the environment and our own profitability.

Strengthened prospects

RevolutionRace is well-positioned to continue capturing market shares and we are developing well in relation to the long-term financial targets for 2023/24, with sales of at least SEK 2 billion and an EBIT margin of at least 25 percent. Despite continued challenges related to the pandemic, we have emerged stronger from the second quarter and are seeing continued strong growth in net sales at the beginning of the third quarter, which seasonally is normally weaker than the second quarter.

In conclusion, I would like to take this opportunity to thank our employees, customers, partners, and shareholders, who all contribute to our success. Together, we are continuing our journey towards becoming the world's most recommended brand!

Pernilla Nyrensten, CEO and co-founder of RevolutionRace

Financial development

Second quarter (Oct-Dec 2021)

Operating income

Net sales for the fourth quarter amounted to SEK 391.7 (248.3) million, an increase by 58 (59 in local currency) percent. Total revenues for the period amounted to SEK 406.7 (251.6) million, the difference between net sales and operating income is attributable to exchange gains.

The growth in all regions is attributable to continued good demand for the company's multifunctional products, in established as well as in new markets, together with a strengthened inventory and a successful optimization of marketing campaigns.

Graph: Regions share of net sales in the second quarter

Net sales in the Nordic region increased by 13 percent to SEK 124.5 (110.7) million, in the DACH region (Germany, Austria and Switzerland) by 98 percent to SEK 191.9 (96.7) million and in the rest of the world by 84 percent to SEK 75.3 (40.9) million. The strong growth in the DACH region is driven by a very good development in the company's largest market, Germany.

Gross profit

Gross profit increased by 57 percent to SEK 280.3 (178.4) million, giving a decrease in gross margin of 0.3 percentage points to 71.6 (71.9) percent. The gross margin is positively affected by a favourable market mix and negatively by a larger share of sales with price reductions, compared to previous year. During the remaining part of 2021/22, the company is expected to be affected by high sea freight prices and disruptions in the flow, and the use of alternative modes of transport is expected to continue.

Operating profit (EBIT)

Operating profit (EBIT) increased by 76 percent to SEK 117.5 (66.8) million, corresponding to an EBIT margin of 28.9 (26.6) percent. The improvement in operating profit is mainly explained by continued high sales growth combined with lower expenses as a share of sales. Goods for resale increased to SEK -114.4 (-69.9) million driven by increased net sales. Personnel expenses amounted to SEK -19.0 (-11.1) million during the quarter.

Earnings and earnings per share for the period

Profit before tax amounted to SEK 116.6 (64.8) million. Profit for the period was SEK 92.3 (50.7) million. Basic earnings per share amounted to SEK 0.82 (0.47) and after dilution SEK 0.82 (0.46) SEK. Growth in earnings per share was 74 percent before dilution and 78 percent after dilution.

Cash flow

Cash flow from operating activities decreased and amounted to SEK 34.4 (61.7) million. The decrease is mainly attributable to an increase in inventories, which is according to plan. Cash flow from investment activities amounted to SEK -0.7 (-1.4) million. Cash flow from financing activities was SEK -72.6 (-108.9) million, whereof SEK -72.3 (- 110.0) million is attributable to dividend paid. Cash flow for the period amounted to SEK -38.9 (-48.5) million.

Financial position

Net debt amounted to SEK -8.1 (109.1) million, mainly driven by cash-flow from operating activities.

Cash and cash equivalents amounted to SEK 242.8 (127.1) million.

The interest-bearing debt of SEK 234.7 (236.2) consist of liabilities to credit institutions in the form of a bank loan of SEK 228.7 (230.0) million and lease liabilities of SEK 6.0 (6.2). During the latter part of the fourth quarter the terms of the bank loan were renegotiated.

Net working capital

Net working capital amounted to SEK 57.6 (-68.2) million. The change is mainly attributable to buildup of inventory.

Investments

Investments affecting cash flow amounted to SEK 0.7 (1.4) million during the period. Investments in intangible fixed assets amounted to SEK 0.5 (1.3) million and are mainly attributable to activation of expenditures related to software development. Investments in property, plant and equipment amounted to SEK 0.1 (0.1) million.

Personnel

The number of employees at the end of the period was 104 (61). The average number of employees during the period was 103 (58). The increase in the number of employees is explained by the company's continued growth.

Six months (Jul-Dec 2021)

Operating income

Net sales for the fourth quarter amounted to SEK 254.2 (130.5) million, an increase of 95 (98 in local currency) percent. Total revenues for the period amounted to SEK 259.5 (130.5) million, the difference between net sales and operating income is attributable to exchange gains. The increase in net sales is attributable to good demand for the company's multifunctional clothing as a result of successful optimization of marketing campaigns in different channels and to different target groups as well as a broadening of the product range, which has driven strong growth in all regions.

Net sales in the Nordic region increased by 53 percent to SEK 115.1 (75.3) million, in the DACH region (Germany, Austria and Switzerland) by 151 percent to SEK 104.9 (41.7) million and in the rest of the world by 155 percent to SEK 34.2 (13.5) million. The strong growth in the DACH region is driven by a very good development in the company's largest market, Germany.

Gross profit

Gross profit increased by 100 percent to SEK 183.9 (92.0) million, giving an increase in gross margin of 1.9 percentage points to 72.4 (70.5) percent. The gross margin is positively affected by a favourable market mix, compared to previous year. During the remaining part of 2021/22, the company is expected to be affected by high sea freight prices and disruptions in the flow, and the use of alternative modes of transport is expected to continue.

Operating profit (EBIT)

Operating profit (EBIT) increased by 92 percent to SEK 190.2 (99.3) million, corresponding to an EBIT margin of 28.6 (25.8) percent. The improvement in operating profit is mainly explained by continued high sales growth combined with lower expenses as a share of sales. Goods for resale increased to SEK -181.7 (-108.4) million driven by increased net sales. Personnel expenses amounted to SEK -34.1 (-) million during the quarter.

Earnings and earnings per share for the period

Profit before tax amounted to SEK 188.3 (95.4) million. Profit for the period was SEK 148.8 (74.7) million. Basic earnings per share amounted to SEK 1.32 (0.70) and after dilution SEK 1.32 (0.68) SEK. Growth in earnings per share was 89 percent before dilution and 94 percent after dilution.

Cash flow

Cash flow from operating activities amounted to SEK 21.5 (121.7) million. The decrease is mainly attributable to an increase in inventories, which is according to plan. Cash flow from investment activities amounted to SEK -1.3 (-2.2) million. Cash flow from financing activities was SEK -73.8 (-109.1) million, whereof SEK -72.3 (- 110.0) million is attributable to dividend paid. Cash flow for the period amounted to SEK -53.6 (10.3) million.

Financial position

Net debt amounted to SEK -8.1 (109.1) million, mainly driven by cash-flow from operating activities.

Cash and cash equivalents amounted to SEK 242.8 (127.1) million.

The interest-bearing debt of SEK 234.7 (236.2) consist of liabilities to credit institutions in the form of a bank loan of SEK 228.7 (230.0) million and

lease liabilities of SEK 6.0 (6.2). During the latter part of the fourth quarter the terms of the bank loan were renegotiated.

Net working capital

Net working capital amounted to SEK 57.6 (-68.2) million. The change is mainly related to build-up of inventory.

Investments

Investments affecting cash flow amounted to SEK 1.3 (2.2) million during the period. Investments in

intangible fixed assets amounted to SEK 1.2 (2.1) million and are mainly attributable to activation of expenditures related to software development. Investments in property, plant and equipment amounted to SEK 0.1 (0.1) million.

Personnel

The number of employees at the end of the period was 104 (61). The average number of employees during the period was 100 (54). The increase in the number of employees is explained by the company's continued growth.

Other information

Financial goals

During the previous financial year, the Board of Directors of RVRC Holding AB established several long-term financial goals as well as a dividend policy for the company.

• Net sales during the financial year 2023/2024 shall amount to at least SEK 2 billion.
• The company shall maintain an annual EBIT margin of at least 25 percent.

• RevolutionRace intends to distribute surplus capital to shareholders after considering long-term financial stability, growth opportunities and strategic initiatives. With these considerations in mind, RevolutionRace intends to distribute 40-60 percent of profits for the year.

Significant events after the end of the period

No significant events after the end of the period.

Future prospects

RevolutionRace's strategy is to continue to capitalize on the transformation from physical in-store trading to ecommerce and strong expected market growth. The company focuses on driving continued high growth in existing and new markets combined with good profitability. The company does not provide a forecast.

Items affecting comparability

Items affecting comparability for the second quarter amounted to SEK 0 (1.1) million and for the period July-December to SEK 0 (1.1) and are attributable to listing preparations.

Parent company

RVRC Holding AB (publ), org. No. 559129–4623 is a Swedish public company with domicile in Borås, Sweden. Net sales for the second quarter of SEK 2.0 (0) million are attributable to intra-group services related to group management. The Parent Company's profit for the first quarter amounted to SEK -3.3 (108.9) million, whereof SEK 0 (110) million is attributable to dividends from group companies.

Risks and uncertainties

A full description of the risks and uncertainties associated with RevolutionRace can be found in the annual report published on 13 October 2021.

RevolutionRace is an international company and its operations as such can be affected by several risk factors in the form of both operational and financial risks. The risks related to the industry and the company include, but are not limited to, trends linked to people's interest in nature as well as increased competition. An economic downturn or change in consumer preferences could have a negative impact on the Group's net sales and profitability.

RevolutionRace is further exposed to external factors that the company cannot influence. For example, it is difficult to assess future effects of the spread of COVID-19, even though demand for the company's products has been strong so far during the pandemic.

Since RevolutionRace operates globally, the company is exposed to changes in exchange rates, which may have a negative impact on the company's revenues as they are reported in SEK but since a large proportion of net sales originate from other currencies. In addition, the company's products are produced in Asia, which

entails a currency risk also on the cost side. The company works actively to reduce currency risks by futuresproofing the Swedish krona against mainly EUR and USD.

About RevolutionRace

RevolutionRace offers high quality functional clothing for people with an active lifestyle. The company was founded in 2013 by Pernilla Nyrensten, CEO and Niclas Nyrensten, Creative Director. Since its inception, the founders have had the goal of creating multifunctional clothing with great fit, in the highest quality and at reasonable prices under the tag line "Nature is our playground". By selling clothes online, directly to consumers without unnecessary intermediaries, RevolutionRace can offer products that have an unbeatable value in terms of price, quality, and design. Together with its customers, the company has grown rapidly and is selling its products to more than 35 countries with net sales exceeding SEK 1 billion (January 2021 - December 2021). Since June 16, 2021, RevolutionRace is listed on Nasdaq Stockholm Midcap. For more information, please visit corporate.revolutionrace.com.

Borås 8 February 2022

Paul Fischbein Chairman of the board Jens Browaldh Board member Magnus Dimert Board member

Cecilie Elde Board member Andreas Källström Säfweräng Board member

Johan Svanström Board member

Pernilla Nyrensten Board member, CEO and co-founder

Contact details Pernilla Nyrensten, CEO and co-founder E-mail: pernilla.nyrensten@revolutionrace.se

Jesper Alm, CFO Tel: +46 70-101 09 80 E-mail: jesper.alm@revolutionrace.se

Auditor's audit

This interim report has not been subject to a review by the company's auditors.

This information is information that RVRC Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:15 CET on 8 February 2022.

Group income statement, condensed

SEKm	Not	Oct-Dec 21/22	Oct-Dec 20/21	Jul-Dec 21/22	Jul-Dec 20/21	Jul-Jun 20/21
Operating income
Net sales	3	391.7	248.3	645.9	378.9	897.1
Other operating income		15.0	3.3	20.3	6.3	15.6
		406.7	251.6	666.2	385.2	912.7
Operating expenses
Goods for resale		-111.4	-69.9	-181.7	-108.4	-248.8
Other external expenses		-145.4	-95.6	-242.3	-145.2	-363.7
Personnel expenses		-19.0	-11.1	-34.1	-19.8	-48.6
Depreciation and amortisation of tangible and intangible assets		-1.2	-1.0	-2.2	-1.8	-3.9
Other operating expenses		-12.3	-7.2	-15.6	-10.6	-17.4
		-289.2	-184.8	-475.9	-285.9	-682.3
Operating profit (EBIT)		117.5	66.8	190.2	99.3	230.4
Financial income		0.0	0.1	0.0	0.1	0.0
Financial expenses		-0.9	-2.1	-1.9	-3.9	-12.0
		-0.9	-2.0	-1.9	-3.8	-12.0
Profit before tax		116.6	64.8	188.3	95.4	218.4
Income tax		-24.4	-14.1	-39.6	-20.7	-46.8
Profit for the period		92.3	50.7	148.8	74.7	171.6
Attributable to parent company´s shareholders		92.3	50.7	148.8	74.7	171.6
Earnings per share
Earnings per share before dilution, SEK		0.82	0.47	1.32	0.70	1.59
Earnings per share after dilution, SEK
		0.82	0.46	1.32	0.68	1.59

Group statement on other comprehensive income, condensed

	Oct-Dec	Oct-Dec	Jul-Dec	Jul-Dec	Jul-Jun
SEKm Not	21/22	20/21	21/22	20/21	20/21
Profit for the period	92.3	50.7	148.8	74.7	171.6
Other comprehensive income
Items reclassified or which may be reclassified to profit for the period
subsidiaries	0.3	-0.0	0.3	-0.0	0.2
Other comprehensive income for the period, after tax	0.3	-0.0	0.3	-0.0	0.2
Comprehensive income for the period	92.5	50.7	149.1	74.7	171.7
Attributable to parent company´s shareholders	92.5	50.7	149.1	74.7	171.7

Group statement of financial position, condensed

SEKm	2021-12-31		2020-12-31 2021-06-30
ASSETS
Non-current assets
Intangible assets
Capitalised expenditures for development work	8.8	8.9	8.8
Trademarks	171.2	171.2	171.2
Goodwill	616.8	616.8	616.8
	796.9	796.9	796.8
Tangible assets
Expenditures on third-party property	0.3	0.4	0.4
Plant and machinery	0.0	0.1	0.0
Equipment, tools and installations	1.0	1.3	1.1
Right of use assets	5.4	5.4	5.6
	6.7	7.1	7.0
Deferred tax asset	1.4	1.8	1.5
	1.4	1.8	1.5
Total non-current assets	805.1	805.8	805.4
Current assets
Goods in warehouse	204.0	32.8	82.6
Goods in transit	107.5	14.1	53.2
Right of return assets	10.4	3.8	7.1
Sum inventory	321.9	50.7	142.8
Accounts receivable	0.9	0.1	0.0
Current tax assets	0.0	1.6	2.7
Other current receivables	41.2	25.5	16.9
Derivative instrument 2	0.8	0.3	2.1
Prepaid expenses and accrued income	6.6	7.0	1.9
Cash and cash equivalents	242.8	127.1	296.3
Total current assets	614.2	212.3	462.7
Total assets	1,419.3	1,018.1	1,268.1

Group statement of financial position, condensed

SEKm	Not	2021-12-31		2020-12-31 2021-06-30
EQUITY AND LIABILITIES
Equtiy
Share capital		1.1	0.1	1.1
Other contributed capital		715.7	647.1	716.4
Reserves, translation differences		0.1	-0.3	-0.2
Retained earnings		-30.1	-128.5	-129.4
Profit for the period		148.8	74.7	171.6
Total equity		835.5	593.1	759.5
Long-term liabilities
Liabilities to credit institutions		228.7	230.0	228.5
Lease liabilities		3.9	4.8	4.6
Deferred tax liabilities		35.3	35.4	35.7
Total long-term liabilities		267.9	270.2	268.8
Current liabilities
Liabilities to credit institutions		0.0	0.0	0.0
Lease liabilities		2.1	1.4	1.5
Accounts payable		154.4	55.4	99.0
Other current liabilitites		52.1	29.5	35.1
Derivative instrument	2	1.0	1.7	0.6
Tax liabilities		26.1	29.8	36.2
Repayment liabilities		41.2	15.1	25.7
Prepaid income and accrued expenses		39.1	21.9	41.7
Total current liabilities		315.9	154.8	239.8
TOTAL EQUITY AND LIABILITIES		1,419.3	1,018.1	1,268.1

Group statement on cash flow, condensed

SEKm	Oct-Dec 21/22	Oct-Dec 20/21	Jul-Dec 21/22	Jul-Dec 20/21
Operating activities
Operating profit (EBIT)	117.5	66.8	190.2	99.3
Adjustment for non-cash items
Depreciation and amortisation	1.2	1.0	2.2	1.8
Interest paid	-0.7	-1.5	-1.7	-3.0
Paid income tax	-7.4	-1.3	-47.2	-5.6
Cash flow from operating activities before changes in working capital	110.6	65.0	143.6	92.6
Increase (-)/Decrease(+) in inventory	-90.7	-25.5	-178.7	-23.9
Increase (-)/Decrease(+) in operating receivables	13.1	-20.7	-28.2	-27.0
Increase (+)/Decrease(-) in operating liabilities	1.3	42.9	84.8	80.0
Cash flow from operating activities	34.4	61.7	21.5	121.7
Investing activities
Acquisition of tangible assets	-0.1	-0.1	-0.1	-0.1
Acquisition of intangible assets	-0.5	-1.3	-1.2	-2.1
Cash flow from investing activities	-0.7	-1.4	-1.3	-2.2
Financing activities
Amortisation of lease liabilities	-0.4	-0.3	-0.9	-0.5
Fees related to borrowings	0.2	0.0	0.2	0.0
Dividend paid	-72.3	-110.0	-72.3	-110.0
New issue	0.0	1.4	0.0	1.4
Warrants, program 2021/24	0.0	0.0	-0.8	0.0
Cash flow from financing activities	-72.6	-108.9	-73.8	-109.1
Cash flow for the period	-38.9	-48.5	-53.6	10.3
Cash and cash equivalents at start of period	281.7	175.4	296.3	116.7
Exchange rate differences in cash and cash equivalents	0.0	0.2	0.1	0.1
Cash and cash equivalents at end of period	242.8	127.1	242.8	127.1

		Other	Reserves,		Profit
	Share	contributed	translation	Retained	for the	Total
SEKm	capital	capital	differences	earnings	period	equity
Opening balance, 1 July 2020	0.1	645.8	-0.3	-78.2	59.7	627.1
						0.0
Transfer of profits for the previous period	-	-	-	59.7	-59.7	-
Profit for the period	-	-	-	-	74.7	74.7
Other comprehensive income	-	-	-0.0	-	-	-0.0
Comprehensive profit/loss for the year	0.0	0.0	-0.0	59.7	15.0	74.7
Closing balance, 31 December 2020	0.1	647.1	-0.3	-128.5	74.7	593.1
Opening balance, 1 July 2021	1.1	716.4	-0.2	-129.4	171.6	759.5
Transfer of profits for the previous period				171.6	-171.6	-
Profit for the period	-	-	-	-	148.8	148.8
Other comprehensive income	-	-	0.3	-	-	0.3
Comprehensive profit/loss for the year	0.0	0.0	0.3	171.6	-22.8	149.1
Transactions with owners
Dividend	0.0	0.0	0.0	-72.3	0.0	-72.3
Warrants, program 2021/24*	-	-0.8	-	-	-	-0.8
Total	0.0	-0.8	0.0	-72.3	0.0	-73.1
Closing balance, 31 December 2021	1.1	715.7	0.1	-30.1	148.8	835.5

Group statement on changes in equity, condensed

*Relates to a buy-back of warrants.

Parent company

Parent company income statement, condensed

SEKm	Oct-Dec Oct-Dec 21/22	20/21	Jul-Dec 21/22	Jul-Dec 20/21	Jul-Jun 20/21
Operating income
Net sales	2,0	0,0	3,2	0,0	1,1
	2,0	0,0	3,2	0,0	1,1
Operating costs
Other operating expenses	-2,4	-1,1	-4,5	-1,1	-22,9
Personnel expenses	-2,1	0,0	-3,4	0,0	-2,1
	-4,6	-1,1	-7,9	-1,1	-25,0
Operating profit (EBIT)	-2,5	-1,1	-4,7	-1,1	-23,9
Financial income and expenses
Profit from participations in group companies	0,0	110,0	0,0	110,0	110,0
Interest expenses and equivalents	-0,8	0,0	-1,7	0,0	-0,1
	-0,8	110,0	-1,7	110,0	109,9
Appropriations
Group contribution received	0,0	0,0	0,0	0,0	24,5
	0,0	0,0	0,0	0,0	24,5
Profit or loss before tax	-3,3	108,9	-6,4	108,9	110,5
Income tax
	0,0	0,0	0,0	0,0	-0,1
Profit/Loss for the period	-3,3	108,9	-6,4	108,9	110,4

Parent company statement of financial position, condensed

SEKm		2021-12-31 2020-12-31 2021-06-30
ASSETS
Non-current assets
Financial assets
Participations in group companies	644.3	644.3	644.3
Receivables from group companies	230.0	0.0	230.0
Total financial assets	874.3	644.3	874.3
Total non-current assets	874.3	644.3	874.3
Current assets
Receivables from group companies	0.0	0.1	24.9
Other receivables	5.0	0.0	0.0
Prepaid expenses and accrued income	0.5	0.0	0.1
Total current receivables	5.6	0.1	27.5
Cash and cash equivalents
Cash and cash equivalents	1.5	1.5	68.6
Total cash and cash equivalents	1.5	1.5	68.6
Total current assets	7.1	1.6	96.1
TOTAL ASSETS	881.4	645.9	970.3

Parent company statement of financial position, condensed

SEKm		2021-12-31 2020-12-31 2021-06-30
EQUITY AND LIABILITIES
Equity
Restricted equity
Share capital	1.1	0.1	1.1
	1.1	0.1	1.1
Unrestricted equity
Share premium reserve
Retained earnings	433.3	361.6	433.3
Profit for the period	211.3	284.2	173.2
	-6.4	-	110.4
	638.3	645.8	717.0
Total equity	639.4	645.9	718.1
Non-current liabilities
Liabilities to credit institutions	228.7	0.0	228.5
Total non-current liabilities	228.7	0.0	228.5
Current liabilities
Accounts payable	0.3	0.0	1.2
Prepaid income and accrued expenses	1.9	0.0	11.6
Liabilities to Group companies	10.5	0.0	10.4
Tax liabilities	0.0	0.0	0.1
Other liabilities	0.6	0.0	0.5
Total current liabilities	13.3	0.0	23.8
TOTAL EQUITY AND LIABILITIES	881.4	645.9	970.3

Definitions

Items affecting comparability

Items affecting comparability refer to events of a material nature that make it difficult for the company to achieve good transparency and comparability over time in the financial statements.

Key performance measures

Some key measures that management and analysts use to assess the Group's performance are not defined by IFRS (alternative performance measures – "APM". The following table follows definitions and a description of the purpose of all key measures. The Company applies ESMA's guidelines for alternative performance measures.

Key measure	Definition	Purpose
Adjusted EBIT1	Operating profit (EBIT) adjusted by items affecting comparability.	Adjusted EBIT is used to maintain the clarity and comparability of the profit of the day-to-day operations.
Adjusted EBIT margin1	Adjusted EBIT as a percentage of operating income. Operating income = Net sales + Other operating income.	Adjusted EBIT margin is used to show the deegre of profitability, excluding items affecting comparability.
Average net order value (AOV) 1	Net sales for the period divided by number of orders for the period.	Average net order value (AOV) is used to analyse the profitability per order.
Cash flow from operations	Cash flow attributable to operations, investment and financial activities not included.	KPI defined by IFRS.
Earnings per share before dilution (SEK)	Net profit for the period attributable to holders of ordinary shares of the parent company, before dilution.	KPI defined by IFRS.
Earnings per share after dilution (SEK)	Net profit for the period attributable to holders of ordinary shares of the parent company, after dilution.	KPI defined by IFRS.
EBIT margin	Earnings before interest and taxes divided by operating income. Operating income = Net sales + Other operating income.	EBIT margin is used to analyse the degree of profitability of the operating business.
EBT	Earnings before taxes.	KPI defined by IFRS.

Key measure	Definition	Purpose
Gross profit 1	Net sales less direct costs related to purchase of goods including freight and customs to warehouse.	Gross profit is used to analyse the profitability of the sale of goods.
Gross profit margin1	Gross profit divided by net sales.	Gross profit margin is used to show the degree of profitability of the sale of goods.
Net sales	Total sales less exchange gains related to operational assets and liabilities.	Net sales is used to analyse sales less exchange rate gains.
Net debt 1	Interest-bearing current and long term liabilities reduced by interest-bearing assets, cash and cash equivalents.	Net debt is used to determine if the company will be able to fulfil its financial commitments.
Net working capital 1	Current assets reduced by cash and cash equivalents minus non interest bearing current liabilities.	Net working capital is used to analyse the condition of the company to finance the day-to day operations.
Number of orders1	Number of orders before cancellations and returns in the period.	Number of orders is used to measure the level of customer activity and to calculate the average net order value (AOV).
Operating profit (EBIT)	Earnings before interest and taxes	Operating profit (EBIT) is used to analyse the profitability of the operating business.
Result for the period	Result for the period.	KPI defined by IFRS.

1) Alternative performance measures according to the guidelines of ESMA.

Reconciliation tables, alternative performance measures

		Oct-Dec Oct-Dec		Jul-Dec	Jul-Dec	Jul-Jun	Jan-Dec
Gross profit	Not	21/22	20/21	21/22	20/21	20/21	2021
Net sales		391.7	248.3	645.9	378.9	897.1	1,164.1
Goods for resale		-111.4	-69.9	-181.7	-108.4	-248.8	-322.1
Gross profit		280.3	178.4	464.2	270.5	648.3	842.0
EBIT and adjusted EBIT
Operating profit (EBIT) as reported		117.5	66.8	190.2	99.3	230.4	321.4
Other external expenses, related to listing preparations (+)		0.0	1.1	0.0	1.1	21.8	20.7
Adjusted EBIT		117.5	67.9	190.2	100.4	252.2	342.1
Net working capital
Current assets		614.2	212.3	614.2	212.3	462.7	614.2
Cash and cash equivalents (-)		-242.8	-127.1	-242.8	-127.1	-296.3	-242.8
Current liabilities (-)		-315.9	-154.8	-315.9	-154.8	-239.8	-315.9
Current interest-bearing liabilities (+)		2.1	1.4	2.1	1.4	1.5	2.1
Net working capital		57.6	-68.2	57.6	-68.2	-71.9	57.6
Interest-bearing current liabilities are attributable to lease liabilities.
Net debt
Interest-bearing debt		234.7	236.2	234.7	236.2	234.6	234.7
Interest-bearing assets (-)		0.0	0.0	0.0	0.0	0.0	0.0
Cash and cash equivalents (-)		-242.8	-127.1	-242.8	-127.1	-296.3	-242.8
Net debt		-8.1	109.1	-8.1	109.1	-61.6	-8.1
Number of orders and average order value (AOV)
Number of orders ('000)		495	321	816	492	1,176	1,500
Net sales		391.7	248.3	645.9	378.9	897.1	1,164.1
Average order value (AOV); (SEK)		791	773	792	770	763	776

Notes

All amounts in the report in SEK million (SEKm), unless otherwise stated. Amounts are rounded to one decimal.

NOTE 1 Accounting principles

RVRC Holding AB applies the International Financial Reporting Standards (IFRS) as adopted by the European Community (EC). The financial statements for the Group and the interim report have been prepared according to applicable sections of the Annual Accounts Act and IAS 34 Interim financial reporting.

The financial statements of the parent company have been prepared according to Annual Accounts Act and RFR 2.

For complete information regarding accounting and valuation principles applied by the group, please see the prospectus which was published at June 7th 2021.

New and amended standards and interpretations that have not yet been applied by the Group

There are no existing IFRS changes during July-December 2021 which are estimated having a significant effect on income statement and financial position for the group.

Note 2 Fair value of financial instruments

	2021-12-31		2020-12-31		2021-06-30
Financial assets	Reported value	Fair value	Reported value	Fair value	Reported value	Fair value
Financial assets reported at fair value via income statement
Derivative intstrument
Foreign exchange forwards	0.8	0.8	0.3	0.3	2.1	2.1
	2021-12-31		2020-12-31		2021-06-30
Financial liabilities	Reported value	Fair value	Reported value	Fair value	Reported value	Fair value
Financial liabilities reported at fair value via income statement
Derivative intstrument
Foreign exchange forwards	1.0	1.0	1.7	1.7	0.6	0.6

For other financial assets and liabilities, carrying amount represents a good approximation of fair value.

Note 3 Income from agreements with customers

The company has one operating segment and has for the breakdown of income identified one category, geographical area, for which the smallest entity is market which belongs to a region. The definition of a market relates to the site on which the sales take place, for example revolutionrace.se for Sweden and revolutionrace.de for Germany.

Below, net sales is presented per geographical market and region, respectively.

	Oct-Dec	Oct-Dec		Jul-Dec	Jul-Dec		Jul-Jun
Market	21/22	20/21	Δ	21/22	20/21	Δ	20/21
Germany	164.0	83.3	97%	259.4	120.5	115%	323.3
Sweden	58.8	55.2	6%	107.7	86.7	24%	186.3
Finland	34.3	31.5	9%	79.9	61.6	30%	115.5
Other	134.7	78.4	72%	198.8	110.0	81%	271.9
Total net sales	391.7	248.3	58%	645.9	378.9	70%	897.1

	Oct-Dec	Oct-Dec		Jul-Dec	Jul-Dec		Jul-Jun
Region	21/22	20/21	Δ	21/22	20/21	Δ	20/21
Nordics	124.5	110.7	13%	239.6	186.0	29%	401.3
DACH	191.9	96.7	98%	296.8	138.5	114%	363.8
Rest of world	75.3	40.9	84%	109.5	54.4	101%	131.9
Total net sales	391.7	248.3	58%	645.9	378.9	70%	897.1

Note 4 Related Party Transactions

The company has no transactions with related parties in the period.

Note 5 Number of shares and warrants

Number of shares

Date	Description	Change in number of shares	Total number of shares
2021-07-01	Opening balance		112,918,918
2021-12-31	Closing balance		112,918,918

Number of warrants

		Subscription	Number of shares
Description	Utlilisation period	price	per warrant	Issued	Allocated
2021/24 incentive program	2024-07-01 - 2024-12-31	96.88	1.01	1,889,677	1,726,139

RevolutionRace holds an incentive program with warrants for senior management and key personnel. All warrants have been transferred at market price.

A buy-back of 51,072 warrants has been made in the period. The company has also, in connection with the dividend and according to the terms, recalculated the subscription price and the number of shares per warrant, reflected in above table.

Note 6 Currency rates

RevolutionRace has a currency exposure mainly towards SEK, EUR, GBP, NOK and DKK for inflow and towards USD, EUR and SEK for outflow. RevolutionRace has accordingly an exposure towards these currencies. For inflow EUR is the primary currency and for outflow the primary currency is USD.

Below currency cross rates for SEK/EUR and SEK/USD for information purposes.

	Oct-Dec 21/22		Oct-Dec 20/21		Jul-Dec 21/22		Jul-Dec 20/21
Currency	AR	CR	AR	CR	AR	CR	AR	CR
SEK/EUR	10.13	10.24	10.27	10.07	10.16	10.24	10.32	10.07
SEK/USD	8.86	9.04	8.61	8.21	8.75	9.04	8.74	8.21

Source: European Central Bank

AR = average rate CR = closing rate

Financial Calendar

Interim report Jul-Mar 2021/2022: 10 May 2022 Year-end report 2021/2022: 9 August 2022 Interim report Jul-Sep 2022/2023: 8 November 2022 Interim report Jul-Dec 2022/2023: 7 February 2023

Contact

RVRC Holding AB Nils Jakobssonsgatan 5D, 504 30 Borås corporate.revolutionrace.com

In the event of discrpenacies bwteen the English and Swedish reports, the Swedish version shall govern.

This report contains forward-looking statements that reflect the company's current expectations. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot be guaranteed that expectations will prove correct as they are subject to risks and uncertainties that could cause actual results to differ materially depending on a number of factors. Such factors include, but are not limited to, changes in consumer demand, changing economic, market and competitive conditions, exchange rate fluctuations, developments in product liability disputes, regulatory environment changes and other government measures. Forward-looking statements relate only to expectations as of the date they were made, and beyond what is required by applicable law, the Company undertakes no responsibility for updating any of them in the event of new information or future events.