Strax — Interim / Quarterly Report 2021

May 26, 2021

STRAX delivers strong growth despite continued Covid-19 lockdowns

• The Group's sales for the period January 1 March 31, 2021, amounted to MEUR 28.1 (22.2), with a gross margin of 18.5 (26.7) percent.
• The Group's result for the period January 1 March 31, 2021, amounted to MEUR -1.4 (-2) corresponding to EUR -0.01 (-0.02) per share.
• EBITDA for the period January 1 March 31, 2021, amounted to MEUR 0.3 (0.3).
• Equity as of March 31, 2021 amounted to MEUR 17.8 (18.2) corresponding to EUR 0.15 (0.15) per share.
• A bid for all outstanding shares in ZAGG shares was approved on February 18, 2021. The bid level was at the current share price so will not have an effect for the P&L but will contribute with approximately 2.5 MEUR in cash, with a potential upside of USD 0.25 per share if certain conditions are met corresponding to an additional USD 159.4 thousands.

Significant events after the end of the period

STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced Urbanista Los Angeles, the world's first self-charging, wireless active noise cancelling headphones, powered by Powerfoyle™ solar cell material. Using advanced green technology, Los Angeles converts all forms of light, outdoor and indoor, into energy to deliver virtually infinite playtime.

"Our strong sales growth in Q1 was driven by the Health & Wellness product category and we also experienced positive development in accessories and audio products relative to 2020. All our markets were affected by some form of lockdown or social restrictions due to the COVID-19 pandemic during the quarter, which negatively impacted sell-through with our brick-and-mortar customers."

Gudmundur Palmason, CEO

This information is information that STRAX AB 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 08:55 CET on May 26, 2021.

WE INNOVATE, WE CREATE, WE INSPIRE, WE DELIVER

STRAX is a global leader in accessories that empower mobile lifestyles. Our portfolio of accessories brands targets broad channel scope as well as different customer demographic and covers all major mobile product categories: Protection, Power, Personal Audio and Connectivity. In response to the ongoing pandemic, STRAX pivoted into Health & Wellness products, with an initial focus on personal protection equipment, such as face masks, gloves and sanitizers. Our success lies in a strong offline and online distribution network and best-in-class customer service, delivered by a stellar team.

We develop and grow brands through an omnichannel approach, and we operate two complementary businesses: Own brands – including Urbanista, Clckr, Richmond & Finch, Planet Buddies, xqisit, AVO+, and licensed brands such as adidas, Bugatti, Diesel, SuperDry and WeSC – and Distribution (traditional retail, enterprises, and online marketplaces). In addition to own and licensed brands, STRAX distributes over 40 major mobile accessory brands and several Health & Wellness brands with an initial focus on personal protection equipment. We sell into all key sales channels ranging from telecom operators, mass merchants and consumer electronics to lifestyle retailers, large enterprises and direct to consumers online.

Founded in Miami and Hong Kong in 1995, STRAX has since expanded worldwide. Today, we have over 200 employees in 13 countries, with our operational HQ and logistics center in Germany. STRAX is listed on the Nasdaq Stockholm stock exchange.

OWN BRANDS – MOBILE ACCESSORIES

INNOVATIVE PROTECTION, AUDIO, POWER & CHARGING SOLUTIONS

With an extensive product portfolio ranging from protection to audio and power, XQISIT brings mid-priced innovative, quality design and functionality to value-conscious consumers.

HIP AUDIO ACCESSORIES WITH SCANDINAVIAN DESIGN

Based in Stockholm, Urbanista is a market leader in its region, combining avant-garde design with the latest in audio technology. The products are designed for a life in motion and built to inspire and endure.

PREMIUM STRENGTH GLASS SCREEN PROTECTION DESIGNED FOR A SEAMLESS FIT

Responding to the growing market demand for tempered glass protection, THOR is a higher quality, premium product, priding itself on being meticulously designed to fit any phone perfectly.

A UNIVERSAL PHONE GRIP AND STAND

A patented universal and multi-functional phone grip that helps prevent users dropping their phone, enables better quality selfies and a more enhanced mobile video watching experience. A thin and stylish design, Clckr is easy to apply using 3Madhesive which will not leave residue.

PREMIUM LIFESTYLE BRAND Richmond & Finch is a Scandinavian tech accessories brand. Richmond & Finch designs and produces contemporary mobile phone and travel accessories. The unisex lifestyle brand creates unique designs which reflect current fashion trends.

CHILDRENS BRAND

Planet Buddies have created a range of kids' accessories based on a variety of colorful characters who represent endangered, vulnerable, and threatened species of animals from all over the world. Their goal is to educate children about the issues that threaten animals with extinction at the same time as offering great and fun products such as headphones and speakers.

LICENSED BRANDS

FOR ACTIVE USE IN THE GYM AND OUTDOORS

adidas Sports aims to set a new bar in the fast-growing market of tech accessories. The new collection of sports cases consists of a variety of flexible armbands, smart waist straps and highly protective anti-slip and anti-shock cases. The adidas Sports cases are carefully designed to protect smartphones during intense workouts or outdoor activities.

STREET WEAR INSPIRED PROTECTION

adidas Originals continues to evolve the brand's legacy through its commitment to product innovation. Inspired by the creativity and courage found in sporting arenas, the adidas Originals smartphone cases combine contemporary youth culture design with resilient protection features.

CHIC AND REFINED PROTECTION

The bugatti brand aims to reflect the cultural and creative diversity of Europe. bugatti's handmade smartphone cases are crafted from high-quality full grain leather and come in a range of timeless colors, epitomizing elegance, and quality workmanship.

DISTINGUISHED DEVICE CASES A small yet distinguished collection of device cases for which the license was acquired from adidas in 2013. This TLF and Y-3 collaboration offers a variety of statement smartphone protection- and booklet cases. Combining adidas design, quality, and durability with the unique, eyecatching designs of Japanese fashion designer Yohji Yamamoto.

PREMIUM STREET WEAR & ACCESSORIES

TLF acquired the license for WeSC in 2020. WeSC designs, markets, and sells clothing & accessories in the premium street wear segment of the international market under the WeSC (We are the Superlative Conspiracy) brand. WeSC's shares are traded on the Nasdaq First North Growth Market and the company's Certified Adviser is G&W Fund Commission.

ICONIC AND CONTEMPORARY FASHION BRAND

TLF acquired the license for Superdry in 2020. Founded in the UK in 2003, Superdry has become an iconic and contemporary fashion brand focusing on high-quality products that fuse vintage Americana with Japaneseinspired graphics. Characterized by quality fabrics, authentic vintage washes, unique detailing, and world leading graphics, Superdry has gained exclusive appeal as well as a global celebrity following.

FOR SUCCESSFUL LIVING

The Diesel slogan for the brand's DNA from the very start. TLF acquired the licence for Diesel to launch mobile accessories in 2020.Through a long and storied history of strong, iconic, and playful campaigns Diesel has become a leader in advertising as well as in fashion.

OWN BRANDS – HEALTH & WELLNESS

AVO+ fills the void in the market for appealing, well marketed, value-oriented solutions for consumer healthcare. Understanding that consumers prefer products and packaging that has been designed for their environment and use case AVO+ has resonated with consumers in markets across the world with its bright/fresh easy to understand concept.

COMMENTS FROM THE CEO

"Our strong sales growth in Q1 was driven by the Health & Wellness product category and we also experienced positive development in accessories and audio products relative to 2020. All our markets were affected by some form of lockdown or social restrictions due to the COVID-19 pandemic during the quarter, which negatively impacted sell-through with our brick-and-mortar customers. Nonetheless, markets such as France and Switzerland delivered excellent results, while Germany and the UK continued to be challenged. The entire STRAX team is committed to riding out the storm and remains optimistic that we are well positioned to deliver accelerated growth rates in the second half of 2021 and beyond.

Sales in Q1 amounted to MEUR 28.1 (22.2), corresponding to an increase of MEUR 5.9 or 26.6% compared to last year. EBITDA during the quarter increased to MEUR 0.34 (0.28), an increase of 23.2% YoY. Mobile accessories sales were MEUR 21.4 (22.2), representing a decrease of 3.5% YoY and sales from the Health & Wellness product category were MEUR 6.7, equalling 23.8% of total sales during the quarter. Trailing twelvemonth (TTM) sales stand at MEUR 117.7 and TTM EBITDA is MEUR 8.6.

The group delivered a solid performance during the quarter despite the challenging brick-and-mortar retail environment for mobile accessories and audio products. We continued to improve our capabilities in the Health & Wellness sector and delivered products globally. We expect this development – coupled with the positive sales trend for our core accessories and audio – to continue for the foreseeable future. Given the current Health & Wellness product range and composition of our customer base in this business area, our gross margin is lower than in our traditional accessories business, resulting in lower average blended gross margin for the STRAX group. To address this, our Health & Wellness team continuously explores opportunities to further develop AVO+, while reviewing new brands for distribution to our vast customer base, both avenues that will improve our blended margins in this segment.

We are experiencing a similar development in our online sales activities, namely strong growth amid compressed margins, with the important difference here being a shorter-term impact. We eventually expect to achieve growth at margins equivalent to those in our traditional B2B markets. While our e-commerce learning curve has been quite steep, with some missteps along the way, I believe that we have now established the right mix of in-house and external resources to achieve scalable and profitable growth for our own brands across all online sales channels.

Our overarching value creation strategy of own brands and broad distribution reach remains intact. All our own brands continue to improve their product range and marketing assets and are ready to seize the opportunities in a post Covid-19 world. We are already seeing an increase in sales for Urbanista, Richmond & Finch and Planet Buddies, and we expect to deliver strong YoY growth across the entire own brands portfolio in 2021. Furthermore, we are developing two unique digital native audio brands, which will be launched now in Q2.

To safeguard STRAX during the pandemic we kept on several companywide cost saving measures from last year and took advantage of the state backed programs that were available to us. Our plan is to continue to operate at these reduced operating expense levels until we see demand for accessories and audio products return to pre-pandemic volume in traditional retail, which we now anticipate being one to two quarters out.

We continue to see ongoing lockdowns in several of our key markets. However, given the successful Covid-19 vaccine rollout in Europe and North America our expectation is that the situation will gradually improve and that we may possibly experience full market recovery for accessories and audio products by the end of Q2. What is more, our expansion into Health & Wellness products has put us in a much better position to navigate this period of uncertainty. Despite ongoing market disruptions related to Covid-19, we still expect modest growth in the first half of 2021, with accelerated growth in the second half of the year, during which all of our traditional accessories and audio product categories should have returned to 'normal' trading levels, although demand for PPE products is expected to recede.

Last but not least, I would like to reiterate that I am confident STRAX is a stronger company today having successfully navigated the COVID-19 pandemic. I remain proud of the entire STRAX team for showing such resilience and agility throughout these challenging times."

The Board of Directors and the CEO of Strax AB hereby summit the interim report for the period January 1 – March 31, 2021

All amounts are provided in EUR thousands unless otherwise stated. Figures in parentheses refer to the corresponding period the previous financial year. Information provided refers to the group and the parent company unless otherwise stated.

Result and financial position January 1 – March 31, 2021

The Group's net sales for the period January 1 – March 31, 2021 amounted to 28 129 (22 212). Gross profit amounted to 5 199 (5 936) and gross margin amounted to 18.5 (26.7) percent. Operating profit amounted to -253 (-171).

Result for the period amounted to -1 404 (-1 929). The result included gross profit 5 199 (5 936) selling expenses -4 653 (-4 911), administrative expenses -1 042 (-1 461), other operating expenses -1 554 (-2 315), other operating income 1 798 (2 580), net financial items -671 (-3 129) and tax -480 (1 371).

As of March 31, 2021, total assets amounted to 96 310 (84 308), of which equity totaled 17 801 (18 171), corresponding to equity/assets ratio of 18.5 (21.6) percent. Interest-bearing liabilities as of March 31, 2021, amounted to 1 197 (18 425). The group's cash and cash equivalents amounted to 4 057 (2 576).

Significant events during the period

A bid for all outstanding shares in ZAGG shares was approved February 18, 2021.

The bid level was at the current share price so will not have an effect for the P&L but will contribute with approximately 2.5 MEUR in cash, with a potential upside of USD 0.25 per share if certain conditions are met corresponding to an additional USD 159.4 thousands.

Seasonal and phone launch fluctuations

STRAX operations have defined fluctuations between seasons, whereby the strongest period is September-November. This means the greater part of the STRAX result is generated during the second half of the year provided the trends from the last five years continue. Timing and supply of hero smartphone launches, e.g. iPhone and Samsung Galaxy, also impacts STRAX results, with these being hard to predict and sometimes challenging to manage.

Investments

Investments during the period amounted to a total of -677 (-335), of which investments in intangible assets amounted to -189 (263), property, plant and equipment amounted to -232 (-72) and investments in subsidiaries amounted to -256 (-).

The parent company's result for the period amounted to - (-). The result included gross profit of 230 (253), administrative expenses -303 (-268) and net financial items 73 (15). As of March 31, 2021, total assets amounted to 77 214 (80 296) of which equity totaled 63 076 (63 076). Cash and cash equivalents amounted to 911 (3 976).

Significant events after the end of the period

STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced Urbanista Los Angeles, the world's first self-charging, wireless active noise cancelling headphones, powered by Powerfoyle™ solar cell material. Using advanced green technology, Los Angeles converts all forms of light, outdoor and indoor, into energy to deliver virtually infinite playtime.

Future development

STRAX will play an active role in shaping the mobile accessories industry both offline and online in all its targeted geographic markets. We will continue to grow our businesses within the strategic framework that we launched in 2016 and refined in 2019, while simultaneously strengthening our operating platform. This will enable us to drive our own brand growth strategy through offline and online sales channels globally with fewer resources. While retaining market share in western Europe, STRAX will at the same time invest and grow at an accelerated rate in North America, and strategic markets in the rest of the world. STRAX will furthermore invest in eCommerce sales channels, both direct brand websites and marketplaces, to improve margins, diversify its traditional retail customer base and secure growth. STRAX has enjoyed positive developments in sales in recent years, except for the heavily impacted Covid-19 pandemic year of 2020. We expect continued organic growth, driven specifically by own brands and improvements in our profitability. We have completed the acquisition of Brandvault, the global online marketplace experts, and established an inhouse digital marketing team. We expect our online sales to grow significantly, albeit from a relatively low base, with eCommerce accounting for 50% of our sales in 3 years. STRAX furthermore intends to play an active role in the ongoing consolidation of our industry through acquisitions, divestments, and partnerships. Reduced overall demand for mobile accessories, stemming from the Covid-19 pandemic, is expected to continue into mid-2021 but will not alter our mid- to longer-term plans in the product category. STRAX entered the health & wellness product category with promising results. To a large extent we utilize our existing resources, infrastructure and distribution competence. Although still being in a relatively early stage of addressing existing customers and developing new customer relationships, we feel strongly about the potential and long-term sustainability of the product category, given that changes in behavior, as a result of Covid-19, are most likely permanent. This applies to the usage of face masks, gloves and various sanitizing products. The new health & wellness category furthermore provides diversification and can reduce our seasonality stemming from the mobile accessories industry.

Risks and uncertainties

Risk assessment, i.e. the identification and evaluation of the company's risks is an annual process at STRAX. Risk assessment is done in the form of self-evaluation and includes establishing action plans to mitigate identified risks. The primary risks present in STRAX business activities are commercial risk, operative risk, financial risk relating to outstanding receivables, obsolete inventory, and currency risk. Other risks that impact the company's financial operations are liquidity, interest rate and credit risk. The company is to some extent dependent on a key number of senior executives and other key personnel to run its operations, and is dependent on a functioning distribution chain, logistics and warehousing.

As a result of the Covid-19 virus, sales started decreasing from second week of March 2020. Relative weakness in mobile accessories sales was prevalent throughout 2020 and is expected to remain until Q2 2021. Measures have been taken in all parts of the business to mitigate the impact of the coronavirus, including in the following areas:

• Adjustments to product purchasing plans • Reduction of operating expenses through reduced working hours or direct salary reductions, and reductions of rent, marketing and travel expenditures

• Credit facilities are being expanded to strengthen liquidity

• Increased activities in online channels

• Distribution of medical products, such as face

masks, gloves and hand sanitizers

For further information on risks and risk management, reference is made to the 2020 annual report.

FINANCIAL CALENDAR:

May 26, 2021 Annual General Meeting

August 25, 2021 Interim report January – June 2021

November 25, 2021 Interim Report January – September 2021 For further information contact:

Gudmundur Palmason (CEO) Johan Heijbel (CFO)

STRAX AB (publ) Mäster Samuelsgatan 10 111 44 Stockholm Sweden Corp.id: 556539-7709 Tel: +46 (0)8-545 017 50 ir@strax.com www.strax.com

The Board is registered in Stockholm, Sweden.

The report has been prepared in Swedish and translated into English. In the event of any discrepancies between the Swedish and English translation, the former shall have precedence.

The undersigned declare that the interim report provides a true and fair overview of the parent company's and the group's operations, financial position, performance and result and describes material risks and uncertainties facing the parent company and other companies in the group.

Stockholm, May 26, 2021

Bertil Villard Chairman

Director Director/CEO

Anders Lönnqvist Gudmundur Palmason

Ingvi T. Tomasson Pia Anderberg Director Director

This report has not been subject to an audit by the company auditor

	2021	2020	2020
	(3 months)	(3 months)	(12 months)
Key ratios	Jan 1– Mar 31	Jan 1- Mar 31	Jan 1 - Dec 31
FINANCIAL KEY RATIOS
Sales growth, %	26.6	-1.5	0.7
Gross margin, %	18.5	26.7	26.3
Equity, MEUR	17.8	18.2	18.2
Equity/asset ratio, %	18.5	21.6	18.3
DATA PER SHARE
Equity, EUR	0.15	0.15	0.15
Equity, SEK	1.50	1.66	1.50
Result, EUR	-0.01	-0.02	0.01
Result, SEK	-0.21	-0.21	0.06
Result per share prior to dilution, EUR	-0.01	-0.02	0.01
Result per share after dilution, EUR	-0.01	-0.02	0.01
NUMBER OF SHARES
Number of shares at the end of the period	120 592 332	120 592 332	120 592 332
Average number of shares	120 592 332	120 592 332	120 592 332
Average number of shares during the period after dilution	124 687 332	124 687 332	124 687 332
EMPLOYEES
Average number of employees	231	218	224

	2021	2020	2020
	(3 months)	(3 months)	(3 months)
Summary income statements, KEUR	Jan 1 – Mar 31	Jan 1 – Mar 31	Jan 1- Dec 31
Net sales	28 129	22 212	111 790
Cost of goods sold	-22 930	-16 276	-83 272
Gross profit	5 199	5 936	28 518
Selling expenses	-4 653	-4 911	-17 817
Administrative expenses (1)	-1 042	-1 461	-3 924
Other operating expenses	-1 554	-2 315	-12 121
Other operating income	1 798	2 580	12 117
Operating profit	-253	-171	6 774
Financial income	2 584	-	-
Financial expenses	-3 255	-3 129	-5 931
Net financial items	-671	-3 129	-5 931
Profit before tax	-924	-3 300	843
Tax	-480	1 371	-174
PROFIT OR LOSS FOR THE PERIOD (2)	-1 404	-1 929	669
Result per share before dilution, EUR	-0.01	-0.02	0.01
Result per share after dilution, EUR	-0.01	-0.02	0.01
Average number of shares during the period	120 592 332	120 592 332	120 592 332
Average number of shares during the	124 687 332	124 687 332	124 687 332
period after dilution
Statement of comprehensive income,
KEUR
Result for the period	-1 404	-1 929	669
Other comprehensive income, translation
gains/losses on consolidation	1 034	-	-2 597
Total comprehensive income for the period	-370	-1 929	-1 928

1) Depreciation and amortization for the period January 1 – March 31, 2021, amounted to 596 (450).

2) The result for the period, respectively the total comprehensive income is attributed to the parent company's shareholders.

Operating segment

		DISTRIBUTION				OWN BRANDS				OTHER				TOTAL
		Q1 2021 YTD Q1 2021 Q1 2020 YTD Q1 2020 1 Q1 2021 YTD Q1 2021 Q1 2020 YTD Q1 2020 Q1 2021 YTD Q1 2021										Q1 2020 YTD Q1 2020 Q1 2021 YTD Q1 2021				Q1 2020 YTD Q1 2020
Net Sales	14 443	14 443	15 742	15 742	13 685	13 685	6 470	6 470	-	-	-	-	28 129	28 129	22 212	22 212
Net COS	-11 418	-11 418	-11 695	-11 695	-11 512	-11 512	-4 582	-4 582	-	-	-	-	-22 930	-22 930	-16 276	-16 276
Gross profit	3 026	3 026	4 047	4 047	2 173	2 173	1 888	1 888	-	-	-	-	5 199	5 199	5 936	5 936
Gross Margin	21%	21%	26%	26%	16%	16%	29%	29%					18%	18%	27%	27%
Distribution Costs	-1 701	-1 701	-2 395	-2 395	-2 868	-2 868	-2 517	-2 517	-85	-85	-	-	-4 653	-4 653	-4 911	-4 911
Administrative Expenses	-494	-494	-328	-328	-428	-428	-1 133	-1 133	-120	-120	-	-	-1 042	-1 042	-1 461	-1 461
Other Operating Expenses	-748	-748	-1 522	-1 522	-806	-806	-793	-793	-	-	-	-	-1 554	-1 554	-2 315	-2 315
Other Operating Income	865	865	1 234	1 234	933	933	1 346	1 346	-	-	-	-	1 798	1 798	2 580	2 580
EBIT	948	948	1 036	1 036	-997	-997	-1 208	-1 208	-205	-205	-	-	-253	-253	-172	-172

	2021	2020	2020
Summary balance sheets, KEUR	Mar 31	Mar 31	Dec 31
ASSETS
NON-CURRENT ASSETS
Goodwill	28 176	28 175	28 176
Other intangible assets	3 814	3 871	4 021
Property, Plant & Equipment	1 095	1 020	1 063
Other assets	1 153	641	1 655
Deferred tax assets	1 013	54	1 016
Total non-current assets	35 251	33 761	35 931
CURRENT ASSETS
Inventories	30 195	18 431	27 560
Tax receivables	1 112	1 325	1 058
Accounts receivable	14 181	16 812	19 149
Other assets	11 513	11 403	8 021
Cash and cash equivalents	4 057	2 576	7 379
Total current assets	61 059	50 547	63 168
TOTAL ASSETS	96 310	84 308	99 099
EQUITY AND LIABILITIES
Equity	17 801	18 171	18 171
NON-CURRENT LIABILITIES:
Tax liabilities	3	2 853	3
Other liabilities	8 006	8 749	8 662
Interest-bearing liabilities	32 809	-	32 918
Deferred tax liabilities	1 350	629	1 350
Total non-current liabilities	42 168	12 232	42 934
Current liabilities:
Provisions	563	1 082	654
Interest-bearing liabilities	1 197	18 425	1 031
Accounts payable	12 337	17 605	15 801
Tax liabilities	5 913	1 904	6 050
Other liabilities	16 331	14 888	14 457
Total current liabilities	36 341	53 904	37 993
Total liabilities	78 509	66 137	80 928
TOTAL EQUITY AND LIABILITIES	96 310	84 308	99 099
Summary of changes in equity, KEUR
Equity as of December 31, 2019		20 100
Comprehensive income January 1 – December 2020		-1 929
Equity as of December 31, 2020		18 171
Comprehensive income January 1 - March 31, 2021		-370
Equity as of March 31, 2021		17 801

	2021 (3 months)	2020 (3 months)	2020 (12 months)
Summary cash flow statements, KEUR	Jan 1- Mar 31	Jan 1- Mar 31	Jan 1 - Dec 31
OPERATING ACTIVITIES
Result before tax	-924	-3 300	843
Adjustment for items not included in cash flow from
operations or items not affecting cash flow	1 298	3 446	7 687
Paid taxes	-429	-101	-429
Cash flow from operations prior to changes in working capital	-55	45	8 101
Cash flow from changes in working capital: Increase (-)/decrease (+) in inventories	-2 635	-1 000	-10 130
Increase (-)/decrease (+) current receivables	2 486	8 355	14 468
Increase (-)/decrease (+) in non-current receivables	519	238	-1 740
Increase (+)/decrease (-) current liabilities	-658	-280	-2 258
Increase (+)/decrease (-) in current liabilities	-1 580	-7 075	-11 981
Cash flow from operations	-1 923	282	-3 540
INVESTMENT ACTIVITIES
Investments in intangible assets	-189	-263	-1 344
Investments in tangible assets	-232	-72	- 547
Investments in subsidiaries	-256	-	-326
Cash flow from investment activities	-677	-335	-2 217
FINANCING ACTIVITIES
Interest-bearing liabilities	-108	-750	34 000
Amortization of interest-bearing liabilities	166	-	-21 313
Paid interest and other expenses	-779	-266	-3 195
Cash flow from financing activities	-722	-1 016	9 493
Cash flow for the period	-3 322	-1 068	3 735
Cash and cash equivalents at the beginning of the period	7 379	3 645	3 644
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	4 058	2 576	7 379

NOTE 1 REFERENCES

• Seasonal and phone launch fluctuations, see page 7
• Reporting per operating segment see page 11
• For further information on accounting principles reference is made to the 2020 annual report
• For events after the end of the period see page 7

NOTE 2 ACCOUNTING PRINCIPLES

As of the financial year 2017 the currency of the Parent Company is Euro (EUR), which is also the reporting currency of the parent company and the Group.

STRAX prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) and with the restrictions which apply due to the Swedish national legislative when preparing the parent company's financial statements.

The Interim report for the group has been prepared in accordance with IAS 34" Interim Reporting" and applicable sections of the Annual Accounts Act.

The section of the report applicable to the parent company has been prepared in accordance with Annual Accounts Act, Chapter 9.

The same accounting principles are applied as in the annual report for 2020.

Accounting and valuation of shares and participations

Shares and participations in subsidiaries and associated companies are in the parent company accounted for at acquisition cost with the fair value of the earlier holding in STRAX at the time of acquisition comprised of fair value to the part to which it relates.

NOTE 3 FAIR VALUE: FINANCIAL ASSETS AND LIABILITIES

Since the group's interest-bearing liabilities consist of variable rate loans and the margin in the contracts are expected to be the same if the group should raise equivalent loans at the reporting date, the fair value of the loans is expected to be in all material respects equal to their carrying amount. The groups other financial assets and liabilities mainly comprises of receivables which are current assets and current liabilities. As the duration of these are short-term, the carrying amount and fair value are in all material respects equal.

Definitions

Key ratio	Calculation	What it measures or represents
Equity/Asset ratio	Equity as a percentage of the total assets.	This measure reflects the financial position and the long term solvency and resistance to periods of economic downturn.
Equity per share	Equity in relation to the number of shares at the end of the period.	Measures development of equity in relation to number of outstanding shares at the end of the period, captures both changes in equity and changes in number of outstanding shares.
Number of shares at the end of the period	The number of shares at the end of each period adjusted for bonus issue and share buy-back etc.	Calculation bases for all balance sheet per shares based key ratios.
Items affecting comparability	The number of shares at the end of each period adjusted for bonus issue and share buy-back etc.	Calculation bases for all balance sheet per shares based key ratios.
Gross profit	Sales less the cost of goods sold.	Measures how well prices to customers in relation to cost of goods sold are maintained including costs to deliver sold goods.
Gross margin	Gross profit in relation to sales expressed as a percentage.	Gross profit in relation to Sales, efficiency measure presented in percentage.
Operating profit/loss	Operating income minus operating costs for the specified period before financial items and taxes.	Measures overall profitability from operations and ongoing business activities including depreciation and amortization.
EBITDA	Operating profit/loss plus depreciations.	Measures overall profitability from operations and ongoing business activities including depreciation and amortization.

	2021	2020	2020
	(3 months)	(3 months)	(12 months)
Bridge to EBITDA, KEUR	Jan 1- Mar 31	Jan 1- Mar 31	Jan 1- Dec 31
EBITDA
Operating profit	-253	-171	6 774
+ Depreciation & amortization	596	450	1 756
EBITDA	343	279	8 530

Parent Company

	2021	2020	2020
	(3 months)	(3 months)	(12 months)
Summary income statements, KEUR	Jan 1 – Mar 31	Jan 1 - Mar 31	Jan 1 - Dec 31
INVESTMENT ACTIVITIES
Net Sales	230	253	1 036
Gross profit	230	253	1 036
Administrative expenses	-303	-268	-976
Operating income	-73	-15	60
Net financial items	73	15	-60
Result after financial items	-	-	-
Current taxes	-	-	-
RESULT FOR THE PERIOD	-	-	-
Statement of comprehensive income, KEUR
Result for the period	-	-	-
Other comprehensive income	-	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-	-	-
	2021	2020	2020
Summary balance sheets, KEUR	Mar 31	Mar 31	Dec 31
ASSETS
Non-current assets	132	134	132
Non-current financial assets	75 693	75 693	75 693
Total non-current assets	75 825	75 827	75 825
Current receivables	478	440	495
Cash and bank balances	911	-	3 976
Total current assets	1 389	440	4 471
TOTAL ASSETS	77 214	76 267	80 296
EQUITY AND LIABILITIES
Equity	63 076	63 076	63 076
Current liabilities	14 138	13 191	17 220
Total liabilities	14 138	13 191	17 220
TOTAL EQUITY AND LIABILITIES	77 214	76 267	80 296
Summary of changes in equity, KEUR
Equity as of December 31, 2019			63 076
Comprehensive income Jan 1 - Dec 31, 2020			-
Equity as of December 31, 2020			63 076
Comprehensive income Jan 1 – Mar 31, 2021			-
Equity as of March 31, 2021			63 076