Strax — Interim / Quarterly Report 2023

May 25, 2023

STRAX – The year is off to a relatively good start when it comes to sales and gross margin development of our core mobile accessories products

• The Group's sales for the period January 1 March 31, 2023, amounted to MEUR 19.3 (31.9) with a gross margin of 32.1 (19.2) percent.
• The Group's result for the period January 1 March 31, 2023, amounted to MEUR -3.3 (-0.7) corresponding to EUR -0.03 (-0.01) per share.
• EBITDA from remaining operations for the period January 1 March 31, 2023, amounted to MEUR 0.2 (1.3).
• Equity as of March 31, 2023, amounted to MEUR -9.5 (13.3) corresponding to EUR -0.08 (0.11) per share.

Significant events after the end of the period

There were no significant events after the end of the period.

"The year is off to a relatively good start when it comes to sales and gross margin development of our core accessories and audio products and during the first quarter, we were focused on the ongoing plan to strengthen our balance sheet and improve liquidity. We have continued to grow the retail footprint of Urbanista, Clckr and Planet Buddies in North America and are at the same time gaining momentum with several private label opportunities in that geographic market."

Gudmundur Palmason, CEO

This information is information that STRAX AB is obliged to make public pursuant to the EU Market Abuse Regulations. The information was submitted for publication, through the agency of the contact person set out above, at 08:55 CET on May 25, 2023.

COMMENTS FROM THE CEO

The year is off to a good start when it comes to sales and gross margin development of our core accessories and audio products. During the first quarter, we were focused on the ongoing plan to strengthen our balance sheet and improve liquidity. We have continued to grow the retail footprint of Urbanista, Clckr and Planet Buddies in North America and are at the same time gaining momentum with several private label opportunities in that geographic market.

As a reminder, our broad tactical plan involves divesting the parts of our business that no longer fit into the future STRAX, with those being Health & Wellness and the licensing business operated under Telecom Lifestyle Fashion. We have already exited our two digital native audio brands, grell and Dóttir. We will also divest the majority of the European distribution business and sell a minority stake in Clckr. The outcome will be a more focused and profitable STRAX consisting of own brands Urbanista, Clckr, RichmondFinch and Planet Buddies, as well as private label for major customers in North America.

Q1 in numbers

Sales in Q1 amounted to MEUR 19.3 (31.9), corresponding to a decrease of MEUR 12.6 or 39.5% compared to last year, largely because of a MEUR 13.7 drop in sales of Covid-19 antigen tests. Gross margin for the period rose to 32.1% (19.2) as a result of improved brand and product mix, reduced freight costs and more favorable foreign exchange rates. EBITDA during the quarter decreased to MEUR 0.2 (1.3), a decrease of 84% YoY. Accessories and audio sales in Q1 were MEUR 18.0 (16.9), representing an increase of 6.5% YoY, whilst sales from Health & Wellness product category were MEUR 1.4 (15.0), equaling 7.0% of total sales for the period.

We expect that continued growth of own brands and cost savings along with improved macro conditions will cause our margins to strengthen further going forward.

Plan to resolve debt levels and liquidity

Our high interest-bearing debt coupled with continuous and ongoing increase in interest rates has exposed STRAX. However, we are fortunate since we have solid assets allowing us to address these challenges. The trade debt of MUSD 20 is planned to be repaid through the divestment of the Health & Wellness business and a proportion of the MEUR 30 loan facility will be repaid through the sale of the majority ownership in our European distribution business and subsequent refinancing of that business. This transaction and the sale of minority stake in Clckr will furthermore significantly improve our liquidity. Discussions for both transactions are under way and our goal is to complete the distribution transaction in the second quarter this year and Clckr in the third quarter.

We have already sold grell and Dóttir has been phased out. At the same time, we're engaged with strategic buyers for both Health & Wellness and Telecom Lifestyle Fashion (licensing business) where our goal is to complete both transactions in the second quarter this year.

Simplified STRAX for the future – mobile accessories and personal audio

With the completion of transactions related to our discontinued operations and the sale of the majority ownership of STRAX Distribution we ultimately end up as a house of brands company, where our minority ownership in STRAX Distribution will be accounted for at equity. The remaining brands will be Urbanista, Clckr, Planet Buddies and RichmondFinch, in addition to private label mobile accessories business. This will provide for a much leaner and simpler operating structure and improved transparency. This outcome will furthermore give management the possibility to focus on the parts of the business that have strong underlying growth potential.

As we are now shaping the new STRAX we see good sales improvements with all own brands paving the way for stronger gross margin and ultimately increased profitability. Urbanista turned the corner already in 2022 with incremental YoY growth and EBITDA profit where Q1 continued on the same path. The collaboration with Exeger has increased Urbanista's brand awareness and we have a strong product portfolio as well as an exciting product roadmap. Clckr products are now listed in approximately 12,000 retail stores globally with the expectation to be in 20,000 stores before the end of this year. The brand has furthermore entered a partnership with G-Form, an impact protection brand, and we'll be announcing a new significant product category for Clckr in the second quarter.

Planet Buddies continues to improve its sustainability positioning and is steadily increasing its retail store footprint. All the brands have furthermore significant growth potential via online marketplaces, where they are supported by Brandvault, our online marketplace and content specialist business unit.

What´s next – completion of our recovery plan

Our core business was disrupted for three consecutive years by events that were completely unforeseen. We have accepted the fact that we must fundamentally change our group structure and business model to fix our key challenges, with those being profitability, debt level and liquidity. We have already started to execute a recovery plan to address all of these that will be fully implemented within 2023. The outcome will be a simpler and more dynamic STRAX, operating as a house of brands, owning Urbanista, Clckr, Planet Buddies and RichmondFinch, all of which are well positioned for growth and opportunistic private label business in North America.

Once and again, I want to thank everyone at STRAX for their continuous hard work and resilience allowing us to drive the business forward. I remain very proud of every one of our people and look forward to our future successes, albeit somewhat in a different format than originally envisioned. At last, I would like to thank our broad stakeholders as well for their patience and ongoing collaboration whilst we improve STRAX.

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. Own brands are Urbanista, Clckr, Planet Buddies and RichmondFinch. 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. 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.

Discontinued operations include Health & Wellness, own brands Dóttir and grell, and licensed brand portfolio of adidas and Diesel.

Office and warehouse in Troisdorf, Germany

OWN BRANDS - MOBILE ACCESSORIES

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.

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 3M-adhesive which will not leave residue.

DISCONTINUED - OWN BRANDS

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.

DISCONTINUED - LICENCED 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

DISCONTINUED - HEALTH & WELLNESS

DISTINGUISHED DEVICE CASES

A small yet distinguished collection of device cases for which the licence 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.

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 submit the interim report for the period January 1 – March 31, 2023

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, 2023

The Group's net sales for the period January 1 – March 31, 2023, amounted to 19 346 (31 942). Gross profit amounted to 6 209 (6 120) and gross margin amounted to 32.1 (19.2) percent. Operating profit amounted to -261 (872).

Result for the period from continuing operations amounted to -1 953 (-725) and the result for the period amounted to -3 301 (-683). The result included gross profit 6 209 (6 120) selling expenses -3 731 (-4 112), administrative expenses -1 249 (-1 800), other operating expenses -1 885 (-4 567), other operating income 395 (5 230), net financial items -1 544 (-1 524) and tax -148 (-73).

As of March 31, 2023, total assets amounted to 93 402 (109 718), of which equity totaled -9 488 (13 329), corresponding to equity/assets ratio of -10.2 (12.1) percent. Interest-bearing liabilities as of March 31, 2023, amounted to 49 728 (49 312). The group's cash and cash equivalents amounted to 2 753 (3 020).

As a result of the compressed margin and inventory write down during the second half of 2022, the group did not meet one of the financial covenants in the loan agreement with PCP as of December 31, 2022. After the end of the period a waiver for the breach was granted and this waiver was again granted for Q4 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 December 31, 2022. The loss in 2022 and the weakened balance sheet as a consequence has also raised the question regarding going concern for the Group. The Board and the management have taken significant actions to ensure the remaining business returns to profitability as well as taking actions on loss making operations being discontinued. This is in combination with the contemplated transactions described in this report leads to the conclusion that liquidity is secured for the coming 12 months.

Significant events during the period

STRAX subsidiary Urbanista, received two awards at CES 2023 in Las Vegas, the most influential tech event in the world. Urbanista Phoenix – the world's first true wireless, noise cancelling earphones powered by light – was awarded best of CES by technology magazines TWICE and MakeUseOf (MUO).

STRAX reached an agreement with lenders and implementation of plan to strengthen the balance sheet and liquidity. STRAX has for the past six quarters received waivers concerning breach of certain conditions in the loan agreement with its lenders. The communication and relationship with P Capital (PCP) as main lender has been constructive throughout this period. As communicated in the Q4 report for 2022 published February 23, 2023, STRAX has worked out a tactical plan involving divesting certain assets to strengthen the liquidity and balance sheet. As a part of that, PCP has also agreed to restate the covenants for Q1, Q2 and Q3 of 2023 to adjust for the current situation. STRAX thereby returns to being in compliance with the loan agreement. STRAX is now executing the plan and expects to considerably lower the debt level of the Group during 2023 and in particular repay significant parts of the outstanding amounts under the loan agreement.

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 2 986 (781), of which investments in software amounted to 1 974 (591), property, plant and equipment amounted to 1 012 (182) and investments in subsidiaries amounted to - (8).

The parent company's result for the period amounted to -505 (-). The result included administrative expenses -473 (-295) and net financial items -32 (-10). As of March 31, 2023, total assets amounted to 79 086 (78 876) of which equity totaled 62 572 (63 076). Cash and cash equivalents amounted to 2 494 (2 433).

Significant events after the end of the period

There were no significant events after the end of the period.

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.

Subject to acceptable profitability threshold STRAX will invest in eCommerce sales channels, through indirect channels, direct brand websites and marketplaces to diversify its traditional retail customer base and secure growth.

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 overall online sales to grow significantly, albeit from a relatively low base, with total eCommerce accounting for 20-30% 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, initially stemming from the Covid-19 pandemic, now high inflation, is expected to continue through most of 2023 but will not alter our mid- to longer-term plans in the product category.

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 continues to impact our day-to-day business and some of the initial measures taken back in March 2020 remain intact. We expect these measures to remain in place throughout 2023.

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 2022 annual report.

FINANCIAL CALENDAR:

May 25, 2023 Interim report January – March 2023

May 25, 2023 Annual General Meeting

August 23, 2023 Interim report January – June 2023 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 25, 2023

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

	2023	2022	2022
	(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, %	-39.4	58.3	2.6
Gross margin, %	32.1	19.2	16.7
Equity, MEUR	-9.5	13.3	-6.5
Equity/asset ratio, %	-10.2	12.1	-6.5
DATA PER SHARE
Equity, EUR	-0.08	0.11	-0.05
Equity, SEK	-0.89	1.14	-0.25
Result continuing operations, EUR	-0.02	-0.01	-0.09
Result continuing operations, SEK	-0.18	-0.06	-0.42
Result from discontinued operations, EUR	-0.01	0.00	-0.07
Result from discontinued operations, SEK	-0.13	0.00	-0.34
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	206	232	203

Calculation ratios

		3 Months			12 Months
	2023	2022	2021	2022	2021
	Jan 1 - Mar 31	Jan 1 - Mar 31	Jan 1 - Mar 31	Jan 1 - Dec 31	Jan 1 - Dec 31
Sales
Sales	19 346	31 942	20 179	104 392	101 795
Increase (+)/decrease (-)	-12 596	11 763		2 597
Sales growth
Increase (+)/decrease (-)	-12 596	11 763		2 597
Value previous year	31 942	20 179		101 795
= Sales growth	-39.4%	58.3%		2.6%
Gross profit
Gross profit	6 209	6 120		17 425
Sales	19 346	31 942		104 392
= Gross profit %	32.1%	19.2%		16.7%
Equity assets ratio
Equity	-9 488	13 329		-6 480
Total assets	93 402	109 718		99 595
= Equity assets ratio %	-10.2%	12.1%		-6.5%

	2023	2022	2022
	(3 months)	(3 months)	(12 months)
Summary income statements, KEUR	Jan 1 – Mar 31	Jan 1 – Mar 31	Jan 1- Dec 31
Net sales	19 346	31 942	104 392
Cost of goods sold	-13 137	-25 822	-86 967
Gross profit	6 209	6 120	17 425
Selling expenses	-3 731	-4 112	-17 532
Administrative expenses (1)	-1 249	-1 800	-4 512
Other operating expenses	-1 885	-4 567	-23 637
Other operating income	395	5 230	25 702
Operating profit	-261	872	-2 554
Financial income	26	-	2
Financial expenses	-1 570	-1 524	-7 076
Net financial items	-1 544	-1 524	-7 074
Profit before tax	-1 805	-652	-9 628
Tax	-148	-73	-1 202
Profit or loss from continuing	-1 953	-725	-10 829
operations after tax Profit or loss from discontinued operations
after tax	-1 348	42	-8 798
PROFIT OR LOSS FOR THE PERIOD (2)	-3 301	-683	-19 627
Basic earnings per share continuing	-0.02	-0.01	-0.09
operations, EUR
Diluted earnings per share continuing operations, EUR	-0.02	-0.01	-0.09
Basic earnings per share discontinued operations, EUR	-0.01	0.00	-0.07
Diluted earnings per share discontinued	-0.01	0.00	-0.07
operations, EUR Weighted average number of shares	120 592 332	120 592 332	120 592 332
during the period
Weighted average number of shares during the period after dilution	124 687 332	124 687 332	124 687 332
Statement of comprehensive income, KEUR
Result for the period	-3 301	-683	-19 627
Other comprehensive income, translation
gains/losses on consolidation	293	-24	-890
Total comprehensive income for the period	-3 008	-707	-20 517

1) Depreciation and amortization for the period January 1 – March 31, 2023, amounted to 477 (471).

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

Operating segment

Q1 2023

	2023	2022	2022	2023	2022	2022	2023	2022	2022
	(3 months)	(3 months)	(12 months)	(3 months)	(3 months)	(12 months)	(3 months)	(3 months)	(12 months)
Operating Segment KEUR	Jan 1 - Mar 31		Jan 1 - Mar 31 Jan 1 - Dec 31 Jan 1 - Mar 31		Jan 1 - Mar 31		Jan 1 - Dec 31 Jan 1 - Mar 31 Jan 1 - Mar 31 Jan 1 - Dec 31
		Distribution			Own Brands and Others			Total
Net Sales	11 536	27 697	70 168	7 810	4 245	34 225	19 346	31 942	104 392
Net COS	-8 938	-22 546	-56 513	-4 199	-3 276	-30 453	-13 137	-25 822	-86 967
Gross profit	2 599	5 151	13 654	3 611	969	3 771	6 209	6 120	17 425
Gross Margin	22.5%	18.6%	19.5%	46.2%	22.8%	11.0%	32.1%	19.2%	16.7%
Distribution Costs	-1 190	-1 687	-6 589	-2 541	-2 425	-10 942	-3 731	-4 112	-17 532
Administrative Expenses	-603	-650	-2 654	-646	-1 150	-1 857	-1 249	-1 800	-4 512
Other Operating Expenses	461	-2 175	-865	-2 347	-2 392	-22 772	-1 885	-4 567	-23 637
Other Operating Income	155	1 549	3 386	240	3 681	22 316	395	5 230	25 702
EBIT	1 421	2 188	6 931	-1 682	-1 316	-9 484	-261	872	-2 554
Depreciation and amortization							477	471	1 624
EBITDA							216	1 343	-930
Depreciation and amortization							-477	-471	-1 624
Financial Income							26	-	2
Financial Expenses							-1 570	-1 524	-7 076
Profit before tax							-1 805	-652	-9 628
Taxes							-148	-73	-1 202
Profit or loss from continuing operations after tax							-1 953	-725	-10 829
Profit or loss from discontinued operations after tax							-1 348	42	-8 798
Profit or loss for the period							-3 301	-683	-19 627

Breakdown of net sales by operating segment

	2023		2022
Net sales per segment, KEUR	Jan 1 - Mar 31	%	Jan 1 - Mar 31	%
Distribution	11 536	59.6%	27 697	86.7%
Own brands	7 810	40.4%	4 245	13.3%
Total	19 346	100%	31 942	100%

Breakdown of net sales by product category

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

	2023		2022
Net sales per product category, KEUR	Jan 1 - Mar 31	%	Jan 1 - Mar 31	%
Accessories	12 495	65%	11 808	37%
Audio	5 489	28%	5 119	16%
Health and Wellness	1 362	7%	15 015	47%
Total	19 346	100%	31 942	100%
	2023		2022
Distribution net sales, KEUR	Jan 1 - Mar 31	%	Jan 1 - Mar 31	%
Accessories	9 269	80%	10 727	39%
Audio	2 193	19%	2 078	8%
Health and Wellness	74	1%	14 892	54%
Total	11 536	100%	27 697	100%
	2023		2022
Own brands net sales, KEUR	Jan 1 - Mar 31	%	Jan 1 - Mar 31	%
Accessories	3 226	41%	831	20%
Audio	3 296	42%	2 291	54%
Health and Wellness	1 288	16%	1 123	26%
Total	7 810	100%	4 245	100%

Geographic market and regions

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

		Q1 2023			Q 1 2022
Geographic market and regions, KEUR	Total	Distribution	Own Brands	Total	Distribution	Own Brands
Western Europe
Denmark	23	4	20	19	4	16
France	2 746	2 431	315	1 421	1 673	- 253
Germany	3 785	3 248	537	18 888	18 537	351
Netherlands	506	448	58	543	640	- 97
Switzerland	2 709	2 393	316	2 213	2 680	- 467
Austria	50	38	12	32	20	11
Norway	54	48	6	104	120	- 16
Poland	333	297	36	461	558	- 97
Sweden	1 330	1 074	256	1 327	1 438	- 111
UK	746	459	287	1 137	689	447
Spain	248	-	248	41	-	41
Belgium	665	594	71	231	272	- 41
Italy	515	-	515	218	-	218
Finland	149	13	136	227	282	- 55
North America	4 189	-	4 189	3 966	-	3 966
Rest of the world	1 296	489	807	1 115	782	333
Total	19 346	11 536	7 810	31 942	27 697	4 245

	2023	2022	2022
Summary balance sheets, KEUR	March 31	March 31	December 31
ASSETS
NON-CURRENT ASSETS
Goodwill	22 774	28 176	22 774
Other intangible assets	4 947	3 165	4 317
Property, Plant & Equipment	766	1 252	886
Other assets	1 668	4 078	1 707
Deferred tax assets	470	287	513
Total non-current assets	30 625	36 958	30 197
CURRENT ASSETS
Inventories	24 425	32 944	26 644
Tax receivables	1 191	971	1 170
Accounts receivable	20 612	23 598	18 661
Other assets	3 516	12 227	8 646
Cash and cash equivalents	2 753	3 020	2 909
Assets held for sale	10 279	-	11 368
Total current assets	62 777	72 760	69 398
TOTAL ASSETS	93 402	109 718	99 595
EQUITY AND LIABILITIES
Equity	-9 488	13 329	-6 480
NON-CURRENT LIABILITIES:
Tax liabilities	3	3	3
Other liabilities	3 493	2 690	3 630
Interest-bearing liabilities	1 734	1 778	1 742
Deferred tax liabilities	1 536	941	1 536
Total non-current liabilities	6 766	5 412	6 911
Current liabilities:
Provisions	685	409	714
Interest-bearing liabilities	47 994	47 534	48 094
Accounts payable	22 221	22 186	26 720
Tax liabilities	4 815	4 309	4 711
Other liabilities	17 744	16 539	16 334
Liabilities associated with assets held for sale	2 664	-	2 591
Total current liabilities	96 124	90 977	99 164
Total liabilities	102 890	96 389	106 075
TOTAL EQUITY AND LIABILITIES	93 402	109 718	99 595
Summary of changes in equity, KEUR
Equity as of December 31, 2021 Comprehensive income January 1 – March 31 2022		14 036 -707
Equity as of March 31, 2022		13 329
Comprehensive income April 1 – December 31, 2022		-19 809
Equity as of December 31, 2022		-6 480
Comprehensive income January 1 – March 31, 2023		-3 008
Equity as of March 31, 2023		-9 488

	2023	2022	2022
	(3 months)	(3 months)	(12 months)
Summary cash flow statements, KEUR	Jan 1- Mar 31	Jan 1- Mar 31	Jan 1- Dec 31
OPERATING ACTIVITIES
Result before tax, continuing operations Adjustment for items not included in cash flow from	-1 805	-652	-9 628
operations or items not affecting cash flow	2 021	1 995	8 699
Paid taxes	-7	-60	-2 099
Cash flow from continuing operations prior to changes in working capital	209	1 283	-3 027
Cash flow from changes in working capital:
Increase (-)/decrease (+) in inventories	582	-4 019	784
Increase (-)/decrease (+) current receivables	1 844	4 410	2 026
Increase (-)/decrease (+) in non-current receivables	-72	36	12 428
Increase (+)/decrease (-) current liabilities	1 764	55	385
Increase (+)/decrease (-) in current liabilities	-3 193	-6 872	3 091
Cash flow from operating activities continuing operations	1 134	-5 107	15 686
Cash flow from operating activities discontinued operations	-148	2 656	-6 805
Cash flow from operations	986	-2 451	8 881
INVESTMENT ACTIVITIES
Investments in software	1 974	591	-1 922
Investments in property, plant & equipment Investments in subsidiaries	1 012 -	182 8	-106 -
Cash flow from investing activities of continuing
operations	2 986	781	-2 028
Cash flow from investing activities of discontinued operations	-1 889	-961	-3 672
Cash flow from investment activities	1 097	-180	-5 700
FINANCING ACTIVITIES
Interest-bearing liabilities	-39	4 921	5 995
Amortization of interest-bearing liabilities	-8	-	-98
Repayment Leasing liabilities	-441	-340	-1 476
Paid interest and other expenses Cash flow from financing activities of continuing	-1 544	-1 524	-7 076
operations	-2 033	3 057	-2 655
Cash flow from financing activities of discontinued operations	-206	-7	-218
Cash flow from financing activities	-2 239	3 050	-2 873
Cash flow for the period	-156	419	308
Cash and cash equivalents at the beginning of the period	2 909	2 601	2 601
Cash and cash equivalents at the end of the period	2 753	3 020	2 909
Less cash and cash equivalents end of period held for sale	-2 244	1 688	-10 696
Cash and cash equivalents end of period from continuing operations	4 997	1 332	13 605

• Seasonal and phone launch fluctuations, see page 7
• Reporting per operating segment see pages 12-14
• For further information on accounting principles reference is made to the 2022 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 2022.

Discontinued operations

During the fall of 2022 the board of directors conducted a strategic review of the groups business and as a result of that process it was decided to simplify the group structure and reduce the number of brands and types of businesses we engage in as well as operational entities in the group.

The brands Dóttir and grell will be divested as well as the licensing business by the subsidiary TLF along with the business segment Health & Wellness. The board's assessment is that a divestment can take place within the coming twelve months and as a consequence of the decision operations relating to the above-mentioned businesses will be reported separately in the income statement in accordance with IFRS 5, discontinued operations. In the balance sheet assets and liabilities attributable to the discontinued operations will be reported separately in the balance sheet as assets held for sale as well as liabilities directly related to assets held for sale.

	2023	2022	2022
	(3 months)	(3 months)	(12 months)
Income statements for discontinued operations, KEUR	Jan 1 - Mar 31	Jan 1 - Mar 31	Jan 1 - Dec 31
Net sales	1 279	7 950	7 915
Cost of goods sold	-1 591	-7 014	-11 480
Gross profit	-313	936	-3 565
Selling expenses	-324	-549	-2 473
Administrative expenses	-376	-234	-1 955
Other operating expenses	-172	-206	379
Other operating income	42	103	-963
Operating profit	-1 142	49	-8 578
Financial income	-	-	-
Financial expenses	-206	-7	-221
Net financial items	-206	-7	-221
Profit before tax	-1 348	42	-8 798
Tax	-	-	-
Profit or loss from discontinued operations after tax	-1 348	42	-8 798

	2023	2022	2022
Bridge to EBITDA	(3 months)	(3 months)	(12 months)
discontinued operations KEUR	Jan 1 - Mar 31	Jan 1 - Mar 31	Jan 1 - Dec 31
Operating profit from discontinued operations	-1 142	49	-8 578
+ Depreciation & amortization from discontinued operations	78	90	809
EBITDA from discontinued operations	-1 064	139	-7 769

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.

+ Depreciation & amortization from continuing operations	477	471	1 624
Operating profit from continuing operations	-261	872	-2 554
Bridge to EBITDA continuing operations KEUR	Jan 1 - Mar 31	Jan 1 - Mar 31	Jan 1 - Dec 31
	(3 months)	(3 months)	(12 months)
	2023	2022	2022

Parent Company

	2023	2022	2022
	(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	-	305	943
Gross profit	-	305	943
Administrative expenses Operating income	-473 -473	-295 10	-1 092 -149
Net financial items	-32	-10	149
Result after financial items	-505	-	-
Current taxes	-	-	-
RESULT FOR THE PERIOD	-505	-	-
Statement of comprehensive
income, KEUR
Result for the period	-505	-	-
Other comprehensive income	-	-	-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-505	-	-
	2023	2022	2022
Summary balance sheets, KEUR	March 31	March 31	December 31
ASSETS
Non-current assets	129	129	129
Non-current financial assets	75 755	75 745	75 755
Total non-current assets	75 884	75 874	75 884
Current receivables	228	219	206
Prepaid expenses and accrued income	480	350	450
Cash and bank balances	2 494	2 433	2 538
Total current assets	3 202	3 002	3 194
TOTAL ASSETS	79 086	78 876	79 078
EQUITY AND LIABILITIES
Equity	62 572	63 076	63 076
Current liabilities	16 514	15 800	16 002
Total liabilities	16 514	15 800	16 002
TOTAL EQUITY AND LIABILITIES	79 086	78 876	79 078
Summary of changes in equity, KEUR Equity as of December 31, 2021			63 076
Comprehensive income January 1 – March 2022			-
Equity as of March 31, 2022			63 076
Comprehensive income April 1-December 31 2022			-
Equity as of December 31, 2022			63 076
Comprehensive income January 1- March 31 2023			-505
Equity as of March 31, 2023			62 572