Strax — Interim / Quarterly Report 2022

Aug 25, 2022

Q2

2022

STRAX is steering reasonably well through external headwinds

• The Group's sales for the period January 1 June 30, 2022, amounted to MEUR 63.8 (54.8) with a gross margin of 17.7 (19.0) percent.
• The Group's result for the period January 1 June 30, 2022, amounted to MEUR -2.0 (-2.7) corresponding to EUR -0.02 (-0.02) per share.
• EBITDA for the period January 1 June 30, 2022, amounted to MEUR 2.4 (1.6).
• Equity as of June 30, 2022, amounted to MEUR 10.5 (16.2) corresponding to EUR 0.09 (0.13) per share.
• Covid-19 continued to have negative impact on sales of own mobile accessories and personal audio products, whilst increasing sales of lower margin health products. This unfavourable brand and product mix coupled with various global supply chain disruptions has caused a drop in gross margin for the period.
• STRAX entered a partnership with a German personal protective equipment specialist company to deliver Covid-19 tests to a regional government body in Germany.
• STRAX extended its partnership with the German personal protective equipment specialist company to deliver Covid-19 tests to another regional government body in Germany. The total value of the contract has increased and will be covering a 24-month period, where total volumes are expected to be higher with lower volumes in Q2.
• AirPop, the premium high performance face mask brand STRAX holds a five-year global exclusive distribution agreement for, recently secured key retail channels in the United States, Canada, and Australia.
• CLCKR, the mobile phone accessory brand, wholly owned by STRAX announced that their range of mobile stand and grip accessories are now available in over 10,000 stores in the US.

Significant events after the end of the period

STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced the launch of Urbanista Phoenix – the world's first true wireless, active noise cancelling earphones powered by light.

"The second quarter of 2022 was to some extent business as usual when looking back at the past couple of years. Challenging external environment stemming from various factors, such as supply chain constraints, shift in demand, strengthening of the US dollar and Covid-19 looming over us. All of these prolonging the uncertainty and creating an environment where change is somewhat the only constant. STRAX was nevertheless able to steer through the headwinds and we delivered reasonable results in the quarter".

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 August 25, 2022.

COMMENTS FROM THE CEO

The second quarter of 2022 was to some extent business as usual when looking back at the past couple of years. Challenging external environment stemming from various factors, such as supply chain constraints, shift in demand, strengthening of the US dollar and Covid-19 looming over us. All of these prolonging the uncertainty and creating an environment where change is somewhat the only constant. STRAX was nevertheless able to steer through the headwinds and we delivered reasonable results in the quarter.

More importantly however, we continued to prepare STRAX for the future in a leaner and simpler operating structure, where we will have two fully independent businesses, STRAX Distribution and Xstra Brands, previously referred to as House of Brands. We expect that the business split will ultimately provide investors with better transparency of the performance of each business, enabling them to independently value the businesses, rather than as a consolidated group. We are also hopeful that the two business segments will develop more favorably on their own and create better foundation for each part to reach their full potential.

We are tirelessly working at stabilizing our business which is forcing us to reassess the opportunities and risks ahead, as well as rearranging our priorities. In line with this we are rationalizing our own brands portfolio and as of this date it´s likely that we will reduce the number of brands and the type of businesses we engage in. Ultimately this will provide for increased focus on fewer brands that will lead to faster growth. Additional benefits are reduced operational complexity and improved transparency, both internally as well as towards all external stakeholders.

Q2 results

Sales in Q2 amounted to MEUR 23.9 (26.6), corresponding to a decrease of MEUR 2.7 or 10.3% compared to last year, stemming from MEUR 7.2 decrease in Health & Wellness sales. EBITDA during the quarter decreased to MEUR 0.9 (1.2), a decrease of 26.6% YoY. Mobile accessories and audio sales in Q2 were MEUR 21.3 (16.3) representing an increase of 26.2% YoY, whilst sales from Health & Wellness product category were MEUR 2.6 (9.7), equaling 10.8% of total sales for the period. Trailing twelve-month (TTM) sales stand at MEUR 132.7 and TTM EBITDA is MEUR 5.1.

Our average blended gross margin remains under pressure due to increased freight costs, strengthening of the USD against most of our operating currencies, and relatively unfavorable brand and product mix. We are taking several measures to improve our margins, from raw product costs to other cost of goods, such as performance marketing and general operating expenses.

STRAX distribution – poised for growth

The STRAX distribution business continues to perform well on the back of its broad and diversified customer base, stretching from telecom operators to consumer electronic stores and mass retailers, as well as B2B enterprises throughout Europe. The good news is that this is not a flawless operation, which means that there are multiple areas where we can improve, leading to both increased sales and reduced costs. We currently are going through a strategic review, where automation and services is high on the agenda coupled with new product categories assessment. STRAX remains as one of the leading European based specialist distributors of tech accessories and the company is well positioned to pursue profitable growth through expanded assortment and the execution of a programmatic acquisition strategy, in due course.

Xstra Brands – shrink to grow

Within Xstra Brands we currently hold both own and licensed brands in tech accessories and personal audio products. Own brands include Urbanista, Clckr, RichmondFinch, Planet Buddies, Dottir and grell, whereas our licensed brand portfolio consists of adidas and Diesel. Xstra Brands will ultimately become a focused business developing own brands in two product categories, tech accessories and personal audio products, that are promoted and sold across multiple channels in targeted geographic markets.

We have come to terms with the fact that we have too many brands in our portfolio and that we must rapidly evaluate to divest or wind some of them down. Our ongoing analysis is centered on each brand's growth prospect and differentiation vs. continued investment and downside risk. Product category obsolescence exposure also plays an important role in the rationalization of our own brands portfolio. We strongly believe that shrinking the own brand portfolio and investing in fewer brands will pave the way for faster growth and success of remaining brands.

Urbanista and Clckr are developing well, especially in North America. Both brands are now listed in more than 10,000 retail doors and have significant upside potential in their respective product categories. We are furthermore excited about their product roadmaps, which we are confident will yield strong growth and profitability in the near future.

The Health & Wellness business will initially remain within Xstra Brands. This business provides a natural product diversification for us whilst the pandemic is ongoing, but it is obvious that this is not our core business. Hence, we are also considering divesting this business in due course.

Covid-19 antigen tests

Our supply of antigen tests into the school system in the state of North Rhein-Westphalia has restarted and all indication is that this business will continue for at least the remainder of 2022, given that the Covid-19 pandemic does not have a clear end in sight. We continue to strengthen our partnership with the PPE specialist company in Germany as we operate as their trusted logistics and fulfilment partner.

The road ahead

We are preparing STRAX for a changed future. We have already executed aggressive headcount reduction and stopped most of our lossmaking activities. We furthermore have continued to analyze the viability and material upside of each of our own brands, with a conclusion that we cannot continue investing in all of them. Some of which we will phase out, whilst others we'll divest. We have additionally concluded that Health & Wellness and/or the licensing business do not strategically fit into either STRAX Europe distribution or Xstra Brands, both of which we will consider divesting in the next 12 months.

I want to thank everyone at STRAX for their hard work and resilience that continues to drive the business forward in a challenging external environment. Your relentless dedication and firm believe that brighter days are ahead provides me with an assurance that our joint and future successes are imminent.

WE INNOVATE, WE CREATE, WE INSPIRE, WE DELIVER

STRAX is a global leader in accessories that empower mobile lifestyles. Our portfolio of branded accessories covers all major mobile accessory categories: Protection, Power, Connectivity, as well as Personal Audio. Our new Health & Wellness category offers branded Personal Protection products. Our distribution business reaches a broad customer base, through 70 000 brick and mortar stores around the globe, as well as through online marketplaces and direct-to-consumers.

Wholly owned brands include Urbanista, Clckr, RichmondFinch, Planet Buddies, xqisit, AVO+, Dóttir and grell, and licensed brands include adidas, Bugatti, Diesel, Superdry and WeSC. Our distribution business also services over 40 other major mobile accessory brands.

Founded as a trading company in 1995, STRAX has since expanded worldwide and evolved into a global brand and distribution business. Today we have over 200 employees in 13 countries. 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 RichmondFinch is a Scandinavian tech accessories brand. RichmondFinch 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.

HIGH-END PERSONALIZED LISTENING EXPERIENCES

Designed to make high-end audio quality more accessible, grell headphones offer personalized listening experience at a price that reflects the cost for quality of the sound, alone. Created by renowned headphone engineer Axel Grell, grell headphones feature a unique combination of high-end technological components, German design, and meticulous attention to detail.

HEADPHONES FOR WORLD CLASS ATHLETES

Dóttir started as an idea between friends that popped up on a stroll around London, creating a headphone for World Class athletes that allows them to train freely without outside distraction. From there it has grown into something much bigger, not only a brand that creates headphones for athletes but a brand that supports female empowerment and equality.

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.

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, eye-catching designs of Japanese fashion designer Yohji Yamamoto.

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.

The Board of Directors and the CEO of Strax AB hereby summit the interim report for the period January 1 – June 30, 2022

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 – June 30, 2022

The Group's net sales for the period January 1 – June 30, 2022, amounted to 63 796 (54 775). Gross profit amounted to 11 316 (10 433) and gross margin amounted to 17.7 (19.0) percent. Operating profit amounted to 1 104 (281).

Result for the period amounted to -2 041 (-2 699). The result included gross profit 11 316 (10 433) selling expenses -9 419 (-9 502), administrative expenses -3 681 (-2 845), other operating expenses -12 266 (-5 170), other operating income 15 153 (7 365), net financial items -2 818 (-2 099) and tax -326 (-882).

As of June 30, 2022, total assets amounted to 115 019 (111 145), of which equity totaled 10 475 (16 213), corresponding to equity/assets ratio of 9.1 (14.6) percent. Interest-bearing liabilities as of June 30, 2022, amounted to 48 937 (40 050). The group's cash and cash equivalents amounted to 2 610 (5 289).

As a result of the compressed margin and inventory write down during the second half of 2021, the group did not meet one of the financial covenants in the loan agreement with PCP as of December 31, 2021. After the end of the period a waiver for the breach was granted and this waiver was again granted for Q2 2022. The fact the waiver was granted after the end of the period has the effect under IFRS that the related interest-bearing debt is reported as current in the balance sheet as of June 30, 2022.

Significant events during the period

STRAX entered a partnership with a German personal protective equipment specialist company to deliver Covid-19 tests to a regional government body in Germany.

STRAX extended its partnership with the German personal protective equipment specialist company to deliver Covid-19 tests to another regional government body in Germany. The total value of the contract has increased and will be covering a 24 month period, where total volumes are expected to be higher with lower volumes in Q2.

AirPop, the premium high performance face mask brand STRAX holds a five-year global exclusive distribution agreement for, recently secured key retail channels in the United States, Canada, and Australia.

CLCKR, the mobile phone accessory brand, wholly owned by STRAX announced that their range of mobile stand and grip accessories are now available in over 10,000 stores in the US.

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 751 (1 179), of which investments in intangible assets amounted to 278 (309), property, plant and equipment amounted to 481 (512) and investments in subsidiaries amounted to 9 (358).

The parent company's result for the period amounted to - (-). The result included gross profit of 491 (618), administrative expenses -640 (-667) and net financial items 149 (49). As of June 30, 2022, total assets amounted to 79 125 (79 138) of which equity totaled 63 076 (63 076). Cash and cash equivalents amounted to 2 584 (2 889).

Significant events after the end of the period

STRAX subsidiary Urbanista, the Swedish lifestyle audio brand, announced the launch of Urbanista Phoenix – the world's first true wireless, active noise cancelling earphones powered by light.

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, through indirect channels, direct brand websites and marketplaces to 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.

We expect our online sales to grow significantly, albeit from a relatively low base, with total eCommerce accounting for 30-50% of our sales in 2025. 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 through 2022 but will not alter our midto 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 mid-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.

The Covid-19 pandemic is still impacting our day-today business and many of the initial measures taken back in March 2020 remain intact. With the increase of cases related to the Omicron variant of the Covid-19 virus we expect these measures to remain in place throughout 2022.

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

Russia's military intervention in Ukraine has led to growing geopolitical uncertainty. STRAX does not conduct any operations in Russia or Ukraine and is not directly impacted from a business perspective, but is indirectly affected by, among other things, increased material prices and supply chain disruptions. STRAX is actively working to limit the negative effects of the situation that has arisen.

For further information on risks and risk management, reference is made to the 2021 annual report.

FINANCIAL CALENDAR:

November 24, 2022 Interim Report January - September 2022

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, August 25, 2022

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

Group

	2022	2021	2022	2021	2021
	(3 months)	(3 months)	(6 months)	(6 months)	(12 months)
Key ratios	Apr 1– Jun 30	Apr 1– Jun 30	Jan 1– Jun 30	Jan 1- Jun 30	Jan 1 - Dec 31
FINANCIAL KEY RATIOS
Sales growth, %	-10.3	-4.9	16.5	9.1	10.7
Gross margin, %	17.8	19.6	17.7	19.0	15.1
Equity, MEUR	10.5	16.2	10.5	16.2	14.0
Equity/asset ratio, %	9.1	14.6	9.1	14.6	12.3
DATA PER SHARE
Equity, EUR	0.09	0.13	0.09	0.13	0.12
Equity, SEK	0.93	1.35	0.93	1.35	1.19
Result, EUR	0.00	-0.01	-0.02	-0.02	-0.03
Result, SEK	0.00	-0.11	-0.18	-0.23	-0.33
Result per share prior to dilution, EUR	-0.01	-0.01	-0.02	-0.02	-0.03
Result per share after dilution, EUR	-0.01	-0.01	-0.02	-0.02	-0.03
NUMBER OF SHARES
Number of shares at the end of the period	120 592 332	120 592 332	120 592 332	120 592 332	120 592 332
Average number of shares	120 592 332	120 592 332	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	124 687 332	124 687 332
EMPLOYEES
Average number of employees	232	218	232	231	231

Calculation ratios

		3 Months			6 Months		12 Months
	2022	2021	2020	2022	2021	2020	2021	2020
	Apr 1 - Jun 30	Apr 1 - Jun 30	Apr 1 - Jun 30	Jan 1 - Jun 30	Jan 1 - Jun 30	Jan 1 - Jun 30	Jan 1 - Dec 31	Jan 1 - Dec 31
Sales
Sales	23 904	26 646	28 013	63 796	54 775	50 225	123 698	111 790
Increase (+)/decrease (-)	-2 742	-1 367		9 021	4 550		11 908
Sales growth
Increase (+)/decrease (-)	-2 742	-1 367		9 021	4 550		11 908
Value previous year	26 646	28 013		54 775	50 225		111 790
= Sales growth	-10,3%	-4,9%		16,5%	9,1%		10,7%
Gross profit
Gross profit	4 260	5 234		11 316	10 433		18 643
Sales	23 904	26 646		63 796	54 775		123 698
= Gross profit %	17,8%	19,6%		17,7%	19,0%		15,1%
Equity asset ratio
Equity	10 475	16 213		10 475	16 213		14 036
Total assets	115 019	111 145		115 019	111 145		114 354
= Equity assets ratio %	9,1%	14,6%		9,1%	14,6%		12,3%

Group

	2022	2021	2022	2021	2021
	(3 months)	(3 months)	(6 months)	(6 months)	(12 months)
Summary income statements, KEUR	Apr 1 – Jun 30	Apr 1 – Jun 30	Jan 1 – Jun 30	Jan 1 – Jun 30	Jan 1- Dec 31
Net sales	23 904	26 646	63 796	54 775	123 698
Cost of goods sold	-19 644	-21 412	-52 480	-44 342	-105 055
Gross profit	4 260	5 234	11 316	10 433	18 643
Selling expenses	-4 758	-4 849	-9 419	-9 502	-17 725
Administrative expenses (1)	-1 647	-1 082	-3 681	-2 845	-5 962
Other operating expenses	-7 492	-3 615	-12 266	-5 170	-9 728
Other operating income	9 820	5 566	15 153	7 365	16 671
Operating profit	183	535	1 104	281	1 899
Financial income	-	18	-	36	24
Financial expenses	-1 287	-1 445	-2 818	-2 135	-4 919
Net financial items	-1 287	-1 428	-2 818	-2 099	-4 895
Profit before tax	-1 105	-893	-1 715	-1 817	-2 996
Tax	-253	-402	-326	-882	-902
PROFIT OR LOSS FOR THE PERIOD (2)	-1 357	-1 295	-2 041	-2 699	-3 898
Result per share before dilution, EUR	-0.01	-0.01	-0.02	-0.02	-0,03
Result per share after dilution, EUR	-0.01	-0.01	-0.02	-0.02	-0,03
Average number of shares during the period	120 592 332	120 592 332	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	124 687 332	124 687 332
Statement of comprehensive income, KEUR
Result for the period	-1 357	-1 295	-2 041	-2 699	-3 898
Other comprehensive income, translation
gains/losses on consolidation	-1 496	-293	-1 520	741	-237
Total comprehensive income for the period	-2 853	-1 588	-3 561	-1 958	-4 135

1) Depreciation and amortization for the period January 1 – June 30, 2022, amounted to 1 282 (1 291).

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

Operating segment

HY 2022

	2022	2021	2021	2022	2021	2021	2022	2021	2021
	(6 months)	(6 months)	(12 months)	(6 months)	(6 months)	(12 months)	(6 months)	(6 months)	(12 months)
Operating Segment, KEUR	Jan 1 - Jun 30	Jan 1 - Jun 30	Jan 1 - Dec 31	Jan 1 - Jun 30	Jan 1 - Jun 30	Jan 1 - Dec 31	Jan 1 - Jun 30	Jan 1 - Jun 30	Jan 1 - Dec 31
		Distribution			Own Brands and Others			Total
Net Sales	41 803	28 478	71 831	21 993	26 297	51 867	63 796	54 775	123 698
Net COS	-32 722	-22 856	-57 397	-19 758	-21 486	-47 658	-52 480	-44 342	-105 055
Gross profit	9 081	5 622	14 434	2 235	4 811	4 209	11 316	10 433	18 643
Gross Margin	21,7%	19,7%	20,1%	10,2%	18,3%	8,1%	17,7%	19,0%	15,1%
Distribution Costs	-3 221	-3 277	-6 252	-6 197	-6 226	-11 473	-9 419	-9 502	-17 725
Administrative Expenses	-1 328	-1 976	-3 702	-2 352	-869	-2 260	-3 681	-2 845	-5 962
Other Operating Expenses	-6 268	-567	-1 268	-5 998	-4 603	-8 460	-12 266	-5 170	-9 728
Other Operating Income	3 612	1 018	1 894	11 541	6 346	14 777	15 153	7 365	16 671
EBIT	1 875	821	5 106	-772	-540	-3 207	1 103	281	1 899
Depreciations and amortizations							1 282	596	2 399
EBITDA							2 385	877	4 298
Depreciations and amortizations							-1 282	-596	-2 399
Financial Income							-	36	24
Financial Expenses							-2 818	-2 135	-4 919
Profit before tax							-1 715	-1 817	-2 996
Taxes							-326	-882	-902
Profit or loss for the period							-2 041	-2 699	-3 898

Q2 2022

	2022	2021	2022	2021	2022	2021
	(3 months)	(3 months)	(3 months)	(3 months)	(3 months)	(3 months)
Operating Segment, KEUR	Apr 1 - Jun 30	Apr 1 - Jun 30	Apr 1 - Jun 30	Apr 1 - Jun 30	Apr 1 - Jun 30	Apr 1 - Jun 30
	Distribution		Own Brands and Others		Total
Net Sales	14 106	14 035	9 798	12 612	23 904	26 647
Net COS	-10 176	-11 438	-9 468	-9 974	-19 644	-21 412
Gross profit	3 930	2 597	330	2 638	4 260	5 235
Gross Margin	27,9%	18,5%	3,4%	20,9%	17,8%	19,6%
Distribution Costs	-1 534	-1 576	-3 223	-3 273	-4 758	-4 849
Administrative Expenses	-679	-1 482	-969	-320	-1 647	-1 802
Other Operating Expenses	-4 093	181	-3 399	-3 796	-7 492	-3 615
Other Operating Income	2 064	153	7 756	5 413	9 820	5 566
EBIT	-312	-127	495	662	182	535
Depreciations and amortizations					721	695
EBITDA					903	1 230
Depreciations and amortizations					-721	-695
Financial Income					-	18
Financial Expenses					-1 287	-1 445
Profit before tax					-1 105	-893
Taxes					-253	-402
Profit or loss for the period					-1 358	-1 295

Breakdown of net sales by operating segment

	2022		2021
Net sales per segment, KEUR	Jan 1 - Jun 30	%	Jan 1 - Jun 30	%
Distribution	41 803	65,5%	28 478	52,0%
Ow n brands	21 993	34,5%	26 297	48,0%
Total	63 796	100%	54 775	100%

Breakdown of net sales by product category

The tables below show net sales by product category in total and operating segment:

	2022		2021
Net sales per product category, KEUR	Jan 1 - Jun 30	%	Jan 1 - Jun 30	%
Accessories	26 847	42%	28 864	52,7%
Audio	10 786	17%	9 441	17,2%
Health and Wellness	26 163	41%	16 470	30,1%
Total	63 796	100%	54 775	100%

	2022		2021
Distribution net sales, KEUR	Jan 1 - Jun 30	%	Jan 1 - Jun 30	%
Accessories	20 625	49%	20 748	73%
Audio	5 229	13%	5 388	19%
Health and Wellness	15 949	38%	2 342	8%
Total	41 803	100%	28 478	100%

	2022		2021
Own brands net sales, KEUR	Jan 1 - Jun 30	%	Jan 1 - Jun 30	%
Accessories	6 222	28%	7 708	29%
Audio	5 557	25%	4 053	15%
Health and Wellness	10 214	46%	14 536	55%
Total	21 993	100%	26 297	100%

	2022		2021
Net sales per product category, KEUR	Apr 1 - Jun 30	%	Apr 1 - Jun 30	%
Accessories	15 730	45%	11 494	52,7%
Audio	5 603	17%	5 411	17,2%
Health and Wellness	2 571	38%	9 741	30,1%
Total	23 904	100%	26 646	100%
	2022		2021
Distribution net sales, KEUR	Apr 1 - Jun 30	%	Apr 1 - Jun 30	%
Accessories	10 657	55%	9 703	73%
Audio	2 589	13%	2 892	19%
Health and Wellness	860	32%	1 440	8%
Total	14 106	100%	14 035	100%
	2022		2021
Own brands net sales, KEUR	Apr 1 - Jun 30	%	Apr 1 - Jun 30	%
Accessories	5 073	26%	1 383	31%
Audio	3 014	25%	2 519	15%
Health and Wellness	1 711	49%	8 709	54%
Total	9 798	100%	12 611	100%

Geographic market and regions

Below geographic information reflects net sales per geographical market and by region:

		2022			2021
Geographic market and regions, KEUR	Total	Distribution	Own Brands	Total	Distribution	Own Brands
Western Europe
Denmark	50	5	45	1 557	27	1 530
France	4 935	4 513	422	6 015	6 003	6 127
Germany	25 277	22 219	2 973	4 594	3 656	938
Netherlands	1 355	1 233	122	1 106	980	127
Switzerland	5 940	5 540	485	9 887	10 089	124
Austria	105	60	45	317	298	20
Norway	248	186	62	201	194	7
Poland	979	913	65	802	820	15
Sweden	3 256	2 733	524	3 693	2 441	1 252
UK	5 226	1 651	3 575	3 294	2 210	1 084
Spain	104	- 11	115	163	14	149
North America	9 955	33	9 922	13 105	4	13 101
Rest of the world	6 366	2 728	3 638	10 039	1 741	7 845
Total	63 796	41 803	21 993	54 775	28 478	26 297

Group

	2022	2021	2021
Summary balance sheets, KEUR	June 30	June 30	December 31
ASSETS
NON-CURRENT ASSETS
Goodwill	28 176	28 176	28 176
Other intangible assets	2 915	3 443	3 436
Property, Plant & Equipment	1 370	1 170	1 362
Other assets	4 133	1 214	4 178
Deferred tax assets	277	913	287
Total non-current assets	36 871	34 916	37 439
CURRENT ASSETS
Inventories	34 719	30 218	30 708
Tax receivables	1 017	811	913
Accounts receivable	26 075	23 415	29 124
Other assets	13 727	16 496	13 569
Cash and cash equivalents	2 610	5 289	2 601
Total current assets	78 148	76 229	76 915
TOTAL ASSETS	115 019	111 145	114 354
EQUITY AND LIABILITIES
Equity	10 475	16 213	14 036
NON-CURRENT LIABILITIES:
Tax liabilities	3	3	3
Other liabilities	3 550	6 362	2 314
Interest-bearing liabilities	1 758	39 175	1 840
Deferred tax liabilities	941	1 350	941
Total non-current liabilities	6 252	46 891	5 098
Current liabilities:
Provisions	488	398	640
Interest-bearing liabilities	47 179	875	42 551
Accounts payable	21 503	22 667	28 998
Tax liabilities	4 356	6 031	4 339
Other liabilities	24 765	18 070	18 691
Total current liabilities	98 291	48 041	95 219
Total liabilities	104 543	94 932	100 317
TOTAL EQUITY AND LIABILITIES	115 019	111 145	114 354
Summary of changes in equity, KEUR
Equity as of December 31, 2020		18 171
Comprehensive income January 1 – December 31 2021		-4 135
Equity as of December 31, 2021		14 036
Comprehensive income January 1 – June 30, 2022		-3 561
Equity as of June 30, 2022		10 475

Group

	2022 (3 months)	2021 (3 months)	2022 (6 months)	2021 (6 months)	2021 (12 months)
Summary cash flow statements, KEUR	Apr 1- Jun 30	Apr 1 - Jun 30	Jan 1- Jun 30	Jan 1- Jun 30	Jan 1- Dec 31
OPERATING ACTIVITIES
Result before tax	-1 105	-893	-1 715	-1 817	-2 996
Adjustment for items not included in cash flow from	2 008	592	4 100	1 891	2 634
operations or items not affecting cash flow Paid taxes	-132	-12	-193	-441	-1 406
Cash flow from operations prior to changes in working capital	771	-314	2 193	-368	-1 768
Cash flow from changes in working capital:
Increase (-)/decrease (+) in inventories	-1 775	-23	-4 011	-2 658	-3 148
Increase (-)/decrease (+) current receivables	-5 487	-14 356	1 287	-11 870	-15 930
Increase (-)/decrease (+) in non-current receivables	-44	42	55	561	-1 794
Increase (+)/decrease (-) current liabilities	1 200	197	1 255	-121	-79
Increase (+)/decrease (-) in current liabilities	7 669	11 802	-896	10 222	16 546
Cash flow from operations	2 333	-2 652	-118	-4 234	-6 173
INVESTMENT ACTIVITIES
Investments in intangible assets	-227	-120	-278	-309	-980
Investments in tangible assets	-353	-280	-481	-512	-1 142
Investments in subsidiaries	9	-102	9	-358	-671
Cash flow from investment activities	-571	-502	-751	-1 179	-2 793
FINANCING ACTIVITIES
Interest-bearing liabilities	-20	6 366	4 901	6 258	10 443
Amortization of interest-bearing liabilities	-355	-322	-355	-156	-
Leasing liabilities	-340	-340	-680	-680	-1 360
Paid interest and other expenses	-1 457	-1 320	-2 988	-2 099	-4 895
Cash flow from financing activities	-2 172	4 385	878	3 323	4 188
Cash flow for the period	-410	1 231	9	-2 089	-4 778
Exchange rate differences in cash and cash equivalents	-	-	-	-	-
Cash and cash equivalents at the beginning of the period	3 020	4 058	2 601	7 379	7 379
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	2 610	5 289	2 610	5 289	2 601

NOTE 1 REFERENCES

• Seasonal and phone launch fluctuations, see page 9
• Reporting per operating segment see pages 14-16
• For further information on accounting principles reference is made to the 2021 annual report
• For events after the end of the period, see page 9

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 2021.

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.

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.

Group
	2022	2021	2022	2021	2021
	(3 months)	(3 months)	(6 months)	(6 months)	(12 months)
Bridge to EBITDA, KEUR	Apr 1- Jun 30	Apr 1- Jun 30	Jan 1- Jun 30	Jan 1-Jun 30	Jan 1- Dec 31
EBITDA
Operating profit	182	535	1 103	281	1 899
+ Depreciation & amortization	721	695	1 282	1 291	2 399
EBITDA	903	1 230	2 385	1 573	4 298

Parent Company

	2022	2021	2022	2021	2021
	(3 months)	(3 months)	(6 months)	(6 months)	(12 months)
Summary income statements, KEUR	Apr 1 – Jun 30	Apr 1 – Jun 30	Jan 1 – Jun 30	Jan 1 –Jun 30	Jan 1 - Dec 31
INVESTMENT ACTIVITIES
Net Sales	186	388	491	618	1 1 47
Gross profit	186	388	491	618	1 147
Administrative expenses	-345	-364	-640	-667	-1 224
Operating income	-159	24	-149	-49	-77
Net financial items	159	-24	149	49	77
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	-	-	-	-	-
			2022	2021	2021
Summary balance sheets, KEUR			June 30	June 30	December 31
ASSETS
Non-current assets			129	131	130
Non-current financial assets Total non-current assets			75 745 75 874	75 693 75 824	75 755 75 885
Current receivables			667	425	573
Cash and bank balances			2 584	2 889	673
Total current assets			3 251	3 314	1 246
TOTAL ASSETS			79 125	79 138	77 131
EQUITY AND LIABILITIES
Equity			63 076	63 076	63 076
Current liabilities			16 049	16 062	14 055
Total liabilities			16 049	16 062	14 055
TOTAL EQUITY AND LIABILITIES			79 125	79 138	77 131
Summary of changes in equity, KEUR
Equity as of December 31, 2020					63 076
Comprehensive income Jan 1 – Dec 2021					-
Equity as of December 31, 2021					63 076
Comprehensive income Jan 1 – June 30, 2022					-