Record sales and EBIT in 2023

Significant increase in the EBIT margin

1 OCTOBER–31 DECEMBER 2023

Net sales amounted to SEK 1,479 million (1,373), up 7.7 percent. Organic growth totalled 7.4 percent (6.8)
Net sales from spectacles subscriptions increased 7.2 percent (21.3)
The gross margin was 76.6 percent (76.7)
EBITDA¹ rose to SEK 348 million (273) and the EBITDA margin was 23.2 percent (19.6)
EBITA increased to SEK 200 million (127) and the EBITA margin was 13.3 percent (9.1)
EBIT increased to SEK 161 million (90) and the EBIT margin was 10.7 percent (6.5)
Cash flow from operating activities increased to SEK 404 million (185)
Net debt amounted to SEK 2,720 million at the end of the period, compared with SEK 2,969 million at year-end 2022
Profit after tax increased to SEK 61 million (51)
Earnings per share before and after dilution increased to SEK 0.41 (0.34)

1 JANUARY–31 DECEMBER 2023

Net sales amounted to SEK 5,905 million (5,277), up 11.9 percent. Organic growth totalled 10.3 percent (10.6)
Net sales from spectacles subscriptions increased 15.1 percent (22.4)
The gross margin was 75.5 percent (75.8)
EBITDA¹ rose to SEK 1,440 million (1,217) and the EBITDA margin was 24.1 percent (22.8)
EBITA increased to SEK 850 million (698) and the EBITA margin was 14.2 percent (13.1)
EBIT increased to SEK 696 million (552) and the EBIT margin was 11.6 percent (10.3)
Cash flow from operating activities increased to SEK 1,150 million (690)
Profit after tax amounted to SEK 311 million (328)
Earnings per share before and after dilution totalled SEK 2.08 (2.19)
The Board of Directors proposes a dividend of SEK 1.80 (1.70) per share

Organic growth, quarter EBITDA-margin, Organic growth, full year EBITDA-margin, full year¹ +7.4% +23.2% +10.3% +24.1%

¹Since no items affecting comparability were reported for the year or the preceding year, adjusted EBITDA corresponds with EBITDA, and the related margins also correspond with each other.

FINANCIAL PERFORMANCE MEASURES

		Q4			Jan-Dec
MSEK	2023	2022	Δ%	2023	2022	Δ%
Net sales	1,479	1,373	7.7	5,905	5,277	11.9
Organic growth, %¹	7.4	6.8		10.3	10.6
Gross margin, %¹	76.6	76.7		75.5	75.8
EBITDA¹	348	273	27.3	1,440	1,217	18.4
EBITDA margin, %¹	23.2	19.6		24.1	22.8
EBITA¹	200	127	56.5	850	698	21.7
EBITA margin, %¹	13.3	9.1		14.2	13.1
EBIT	161	90	78.6	696	552	26.0
EBIT margin, %	10.7	6.5		11.6	10.3
Profit after tax	61	51	19.3	311	328	-5.3
Earnings per share before and after dilution, SEK²	0.41	0.34	19.6	2.08	2.19	-4.8
Cash flow from operating activities	404	185	118.9	1,150	690	66.7
Cash flow from operating activities/Adjusted EBITDA, %¹	116.2	67.6		79.9	56.7
Net debt/Adjusted EBITDA¹	n/a	n/a		1.89	2.44

¹For information on the calculation of these alternative performance measures, refer to pages 31-36.

NET SALES AND ADJUSTED EBITDA MARGIN PER QUARTER1

¹ The adjusted EBITDA margin for all quarters starting in 2019 was impacted by the implementation of IFRS 16 Leases. Previous comparative quarters have not been restated.

²For information on the change in the number of shares and the average number of shares, refer to the section "Other financial information" on page 30.

2023 was a record year for Synsam, with strong growth, increased profitability, and an improved market position. Synsam generated organic growth of 10 percent and like-for-like growth of 7 percent in 2023 in a market in which consumers have generally refrained from spending. Earnings improved in 2023, with EBITDA up 18 percent and EBIT up 26 percent. The EBITDA margin and EBIT margin also improved considerably and amounted to 24.1 percent (22.8) and 11.6 percent (10.3), respectively. EBITDA increased 27 percent in the fourth quarter, and our increase in EBIT was significantly higher than our sales growth for both full-year 2023 and the fourth quarter. Our strategy – based on establishing the right types of stores, focusing on Synsam Lifestyle, an efficient organisation and having a strong service offering – is yielding results.

Subscription business reaches SEK 3 billion in sales

Synsam's spectacles subscription, Synsam Lifestyle, posted a 15 percent increase in sales in 2023 and reached SEK 3 billion in sales. The active customer base increased by 109 thousand customers during the year and by 24 thousand customers in the fourth quarter. We also see that sales from subscription renewals are becoming increasingly important compared with revenue from new sales. The churn rate (a measure used to express the share of customers who terminated their spectacles subscriptions) was stable in the fourth quarter at 2.28 percent. The business provides added value for our customers, in particular during these times of economic uncertainty, since the service provides customers with options at several price levels and

predictable monthly fees, enabling costs to be spread out over time. Synsam Group's contact lens subscription was also successful, with strong growth and net sales of SEK 375 million (223) in 2023.

Synsam's goal is for the total number of subscription customers (those who either have a Lifestyle subscription or who only subscribe for contact lenses) to amount to one million by the end of 2025. As of 31 December 2023, this figure was about 745 thousand.

High rate of establishment

Synsam established 22 new stores in 2023 and has thus established 85 new stores during the 2021– 2023 period, in line with our previously communicated target. Our new stores are quickly becoming profitable thanks to our strong concepts and our effective analyses and establishment methods. We also saw an increase in in-store traffic in the fourth quarter of 2023 and the full year. As of 31 December 2023, Synsam had 547 stores. In the first quarter of 2024, Synsam will establish between eight and ten new stores and the goal is to establish 90 new stores during the 2024–2026 period. Synsam sees great potential to continue increasing the number of stores in existing markets in the Nordics, which will also include continued investments in Synsam Hearing, with more than ten new hearing units opened in 2024 as part of our continued assessment of this business as a complement to our optical retail business.

Continued strong performance in Sweden and Finland. New management team in Norway and results beginning to emerge. Measures being taken in Denmark

In Sweden, Synsam further increased its market share with organic growth of 11 percent and a stronger EBITDA margin in 2023.

Synsam's strong growth in Finland continued in 2023 at the same time as its profitability improved. During the 2021–2023 period, 26 new stores were established in Finland. Synsam has a successful concept that is appreciated by customers. This was the foundation for the strong organic growth in Finland, where we are capturing significant market share.

Norway posted organic growth of 9 percent in 2023, but the EBITDA margin declined as a result of a lower gross margin. We strengthened our market position in 2023 and are now focusing on improving our efficiency. A new management has been in place for a year and the results of this are beginning to emerge.

Organic growth in Denmark was negative in the fourth quarter, in a deeply competitive and weaker consumer market. The Danish Credit Agreement Act was amended in the third quarter, impacting credit rating assessments for customers of the Danish Lifestyle offering, which negatively impacted sales both directly and indirectly during the second half of 2023. As a result of the weaker sales trend combined with cost increases due to inflation, the EBITDA margin was lower. Measures have been taken and are expected to have an effect over both the short and long term, such as the introduction of Lifestyle Cash, where the customer receives the benefits of the Lifestyle solution without making partial payments. The measures taken have started to have a positive impact in Denmark.

Strong customer offering

In our stores, customers should always be able to find frames that suit their look and style. We are constantly improving our stores and concepts to enhance our availability and customer service. Synsam's own House Brands also play an important role in differentiating and strengthening our customer offering, attract new customers with unique products, creating attractive prices at various price points, and helping to improve the profitability as well as conversion rate of the Synsam Lifestyle subscription service. Since 2022, we also have our own production operations in Sweden for certain House Brand frames, Jämtö and Oscar Eide, which means that we can offer locally produced frames to our customers in the Nordic market. Moving part of

our production from Asia and closer to the end customer in this way is an important part of Synsam's sustainability strategy. It also shortens lead times, which makes it possible to meet customer needs and demands more quickly.

Continued focus on efficiency

Our stronger EBITDA margin, despite continued cost inflation, is partly a result of the cost and restructuring programme initiated ahead of 2023. As previously announced, the aim of this programme is to reduce the cost base for operating expenses by SEK 102 million in 2023 and by SEK 129 million in 2024, compared with 2022. A new cost programme is now being implemented in order to counteract cost increases as a result of inflation and is expected to have an additional annual effect of SEK 106 million, of which an effect of SEK 94 million on full-year 2024. In the fourth quarter of 2023, EBITDA was charged with SEK 10 million in extra costs due to the implementation of the new cost programme.

Increased optician capacity – Synsam EyeView

Optician capacity has been a limiting factor for growth and availability in our industry for a long time. The introduction of Synsam EyeView in Synsam's stores creates the prerequisites for further growth, increased availability and more satisfied customers. The project to introduce Synsam EyeView continued throughout 2023, and the success of this project has been evident in the stores where the solution has been introduced, where it has been very positively received by our customers.

We achieved our growth target in 2023 and closed in on our medium-term profitability target of an EBITDA margin of 25 percent or higher. We are never satisfied and are focusing on creating profitable growth through innovative solutions and meeting our customers' needs while ensuring efficiency. Thanks to the outstanding work of our employees, Synsam is strengthening its position in the market.

Håkan Lundstedt President and CEO

Financial performance

Group net sales

1 OCTOBER–31 DECEMBER 2023

Net sales increased 7.7 percent to SEK 1,479 million (1,373). Organic growth amounted to 7.4 percent (6.8) and like-for-like growth to 4.3 percent (4.0). Acquisitions impacted sales in the quarter by SEK 6 million (-). Currency translation effects impacted net sales by SEK 0 million (38), corresponding to 0.0 percentage points (3.1).

The active customer base for Synsam Lifestyle subscriptions increased by 24 thousand customers in the quarter. Synsam Group's quarterly churn rate, Synsam Lifestyle is a measure used to express the share of customers who terminated their spectacles subscriptions. The churn rate for the fourth quarter was 2.28 percent (2.11)

Net sales from spectacles subscriptions increased 7.2 percent to SEK 780 million (728), with the Sweden and Finland segments contributing to this increase as well as the Norway segment in local currency.

Net sales from Synsam Group's contact lens subscriptions in the fourth quarter of 2023 increased to SEK 99 million (57), corresponding to 73 percent, with an active customer base of 182 thousand customers (129 thousand) on 31 December 2023, an increase of 40 percent.

Synsam Group's net sales online increased to SEK 36 million (27) for the fourth quarter of 2023, corresponding to 34 percent.

1 JANUARY–31 DECEMBER 2023

Net sales increased 11.9 percent to SEK 5,905 million (5,277). Organic growth was 10.3 percent (10.6) and like-for-like growth was 7.1 percent (6.7). The net effect of acquisitions is estimated to have had an impact on sales of SEK 11 million (2), equivalent to 0.2 of a percentage point (0.0). Currency translation effects had a positive impact of SEK 74 million (126) on net sales, corresponding to 1.4 percentage points (2.7).

The active customer base for Synsam Lifestyle subscriptions increased 21 percent to 620 thousand customers (511 thousand) compared with 31 December 2022. The annual churn rate for 2023 declined to 9.09 percent (9.45).

Net sales from spectacles subscriptions rose 15.1 percent to SEK 3,008 million (2,614), an increase attributable to all segments.

Net sales from Synsam Group's contact lens subscriptions increased to SEK 375 million (223), equivalent to growth of 68 percent. The introduction of contact lens subscriptions in Denmark is having a positive impact on growth. Synsam Group's contact lens subscription is a recurring purchase agreement with the right to cancel at least one week before the next delivery.

Synsam Group's net sales online increased to SEK 174 million (149), corresponding to 17 percent.

Share of net sales per segment and Other and central functions during the quarter

Active customer base Synsam Lifestyle (thousands), at the end of the period

Share of total net sales in 2023, Synsam Lifestyle

Total net sales

External net sales per segment and Other and central functions

		Q4			Jan-Dec
Breakdown, MSEK	2023	2022	Δ%	2023	2022	Δ%
Synsam Sweden	739	682	8.3	2,835	2,534	11.9
Synsam Denmark	277	267	3.9	1,181	1,093	8.1
Synsam Norway	276	284	-2.7	1,175	1,128	4.1
Synsam Finland	154	108	42.9	590	393	50.2
Other and central functions	33	33	-1.0	124	129	-3.9
Group, total	1,479	1,373	7.7	5,905	5,277	11.9

Like-for-like growth¹

%	Sweden	Denmark	Norway	Finland	Group
Oct-Dec 2023	5.6	-0.4	1.2	18.9	4.3
Jan-Dec 2023	8.9	0.2	5.9	22.3	7.1

¹For information on the calculation of alternative performance measures, refer to pages 31-36.

Growth¹

		Q4	Jan-Dec
2023	%	MSEK	%	MSEK
Organic growth	7.4	101	10.3	544
Acquisitions	0.4	6	0.2	11
Currency	0.0	0	1.4	74
Franchise	-0.1	-1	0.0	-1
Total growth	7.7	105	11.9	628

¹For information on the calculation of alternative performance measures, refer to pages 31-36.

Lifestyle sales (% share) per quarter

Organic growth (%) per quarter¹

Organic growth¹ is measured against the corresponding period last year. 2021 is excluded from the diagram since the comparison in the first half of 2021 was strongly impacted by the effects of the COVID19 pandemic on the corresponding period in 2020. Organic growth 2021: Q1 17%, Q2 44%, Q3 21% and Q4 14%.

Group earnings

1 OCTOBER–31 DECEMBER 2023

EBIT before depreciation and amortisation of tangible and intangible non-current assets (EBITDA)

EBITDA rose SEK 75 million to SEK 348 million (273), corresponding to an EBITDA margin of 23.2 percent (19.6). The increase in earnings was largely due to increased sales. Synsam's comprehensive offering including its attractive store concepts, own House Brands and Synsam Lifestyle subscriptions contributed positively to the increase in sales. Earnings were also positively impacted by phase one of the ongoing cost and restructuring programme.

Gross profit

The gross margin for the fourth quarter was 76.6 percent (76.7) despite high inflation. Measures taken since autumn 2022 contributed to the gross margin being in line with the year-earlier period.

EBIT before amortisation of intangible non-current assets (EBITA)

EBITA increased to SEK 200 million (127) and the EBITA margin was 13.3 percent (9.1). The increase in profit is based on the effects that have impacted EBITDA. Depreciation for the quarter has stabilized as a result of lower investment levels in 2023 compared to 2022.

Additional earnings information

EBIT increased to SEK 161 million (90) as a result of the same factors that impacted EBITDA.

Profit before tax increased to SEK 92 million (59) and profit after tax increased to SEK 61 million (51).

Net financial items amounted to SEK -69 million (-31) in the fourth quarter and were impacted positively by exchange rate changes of SEK 7 million (9). The Group recognises exchange rate adjustments for accounts receivable and accounts payable in net financial items. Interest income from Synsam Lifestyle amounted to SEK 67 million (46) and credit costs linked to Synsam Lifestyle totalled SEK 95 million (68). Interest expenses (including costs associated with raising loans) from bank loans amounted to SEK 47 million (27) and interest expenses linked to lease liabilities totalled SEK 9 million (-4) in the quarter.

The Group's expense for income taxes totalled SEK 30 million (8), corresponding to an effective tax rate of 33 percent (13). During the quarter, a decision from the Swedish Tax Agency resulted in a positive effect on tax of SEK 5 million (15). Non-deductible interest expense had a negative impact on tax in the quarter.

		Q4			Jan-Dec
MSEK	2023	2022	Δ%	2023	2022	Δ%
EBITDA per segment
Synsam Sweden	252	213	18.3	895	758	18.1
Synsam Denmark	51	58	-12.7	281	277	1.4
Synsam Norway	48	53	-8.9	236	239	-1.1
Synsam Finland	14	5	176.1	75	35	112.7
Other and central functions	-18	-56	68.7	-46	-92	49.7
Total EBITDA	348	273	27.3	1,440	1,217	18.4
Depreciation of tangible non
current assets	-148	-146		-591	-519
Total EBITA	200	127	56.5	850	698	21.7
Amortisation of intangible
non-current assets	-39	-37		-154	-146
EBIT	161	90	78.6	696	552	26.0
Net financial items	-69	-31		-281	-137
Profit before tax	92	59	55.5	415	415	0.1
Income tax	-30	-8		-105	-87
PROFIT FOR THE PERIOD	61	51	19.3	311	328	-5.3

-0.40 -0.20 0.00 0.20 0.40 0.60 0.80 1.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023

1 JANUARY–31 DECEMBER 2023

EBIT before depreciation and amortisation of tangible and intangible non-current assets (EBITDA)

EBITDA rose to SEK 1,440 million (1,217) and the EBITDA margin was 24.1 percent (22.8). This increase in earnings was largely a result of higher sales supported by Synsam's comprehensive offering including its attractive store concepts, own House Brands, digital solutions and Synsam Lifestyle subscriptions. The gross margin was somewhat lower compared with the year-earlier period due to increased purchase prices. Earnings were positively impacted by phase one of the ongoing cost and restructuring programme.

The start-up phase of production at Synsam Group's production and innovation centre in Östersund had a negative effect of SEK 19 million (27) on EBITDA.

EBIT before amortisation of intangible non-current assets (EBITA)

EBITA rose to SEK 850 million (698), corresponding to an EBITA margin of 14.2 percent (13.1). The increase in earnings was due to the same factors that impacted EBITDA, which were partially counteracted by higher depreciation and amortisation as a result of accumulated higher investments in the last few years.

Additional earnings informations

EBIT increased to SEK 696 million (552) for full-year 2023.

Profit before tax was SEK 415 million (415) and profit after tax was SEK 311 million (328), of which tax amounted to SEK -105 million (- 87), corresponding to an effective tax rate of 25 percent (21). A decision from the Swedish Tax Agency resulted in a positive effect on tax of SEK 7 million (15). Non-deductible interest expense had a negative impact on tax.

Net financial items amounted to SEK -281 million (-137) for the full year. Exchange rate changes impacted net financial items by SEK -2

million compared with a positive impact of SEK 38 million in the yearearlier period. The Group recognises exchange rate adjustments for accounts receivable and accounts payable in net financial items. Interest income from Synsam Lifestyle amounted to SEK 249 million (135) and related credit costs amounted to SEK 352 million (206).

Net sales and adjusted EBITDA-margin per quarter1

Synsam Group´s quarterly churn rate

Synsam Group's quarterly churn rate, Synsam Lifestyle is a measure used to express the share of customers who terminated their spectacles subscriptions. This measure is calculated as the number of customers in Synsam Group who terminated their Lifestyle subscriptions during the quarter divided by the active customer base in Synsam Group at the beginning of the quarter. For definitions, refer to page 38. The churn rate for the fourth quarter was 2.28 percent (2.11). The annual churn rate for 2023 declined to 9.09 percent (9.45).

YEAR-END REPORT 2023 9 (40)

Synsam Group´s quarterly churn rate - Synsam Lifestyle

¹ The adjusted EBITDA margin for all quarters starting in 2019 was impacted by the implementation of IFRS 16 Leases. Previous comparative quarters have not been restated.

Cash flow

OPERATING ACTIVITIES

Cash flow from operating activities amounted to SEK 404 million (185) for the fourth quarter and SEK 1,150 million (690) for the full year. Income taxes paid totalled SEK -31 million (8) for the quarter and SEK -144 million (-153) for the full year.

INVESTING ACTIVITIES

Investments in tangible and intangible non-current assets amounted to SEK 74 million (106) for the fourth quarter and SEK 247 million (382) for the full year. Refer to "Other financial information" on page 29 and "Reconciliation of alternative performance measures" on pages 31–36.

FINANCING ACTIVITIES

Cash and cash equivalents totalled SEK 582 million (444) at the end of the year. Exchange rate differences in cash and cash equivalents amounted to SEK -11 million (4) for the quarter and SEK -30 million (14) for the full year. The existing bank loans, which were raised in connection with the Group's refinancing during the fourth quarter of 2021, are payable in full upon maturity and run for three and five years, respectively. No new bank loans were raised and no repayments took place during the year. In 2023, a dividend of SEK 253 million (255) was paid to Synsam's shareholders. In the fourth quarter, own shares were repurchased for SEK 30 million (47).

Financial position

Loans from financial institutions amounted to SEK 2,493 million (2,488) on 31 December 2023, of which current liabilities amounted to SEK 464 million (-). Unutilised credit lines amounted to SEK 940 million (940). Lease liabilities totalled SEK 762 million (909) on 31 December 2023. Net debt totalled SEK 2,720 million1 (2,969) at year-end.

In 2023, a dividend of SEK 253 million (255) was paid to Synsam's shareholders, which negatively impacted net debt. The repurchase of shares of SEK 30 million (47) negatively impacted net debt while currency effects on loans from financial institutions had a positive impact this year of SEK 2 million (-65) due to certain loans being raised in a currency other than SEK.

If net debt had been calculated not taking IFRS 16 in account, it would have amounted to SEK 1,971 million¹ (2,073) on 31 December 2023.

¹ As of the balance sheet date, cash and cash equivalents linked to holding accounts with financial institutions for the repurchase of shares as collateral for LTIP 2023 were pledged in an amount of SEK 37 million (-) and were therefore added back in the calculation of net debt.

Acquisitions and establishments

FOURTH QUARTER

Synsam Sweden opened four new stores during the quarter, Synsam Frösön, Synsam Sigtuna, Synsam Åre and Synsam Askersund. The former franchise store Synsam Lysekil was purchased and became a wholly owned Synsam store during the quarter.

In Synsam Denmark, Profil Optik Kolding merged with Profil Optik Optikjær.

In Synsam Norway, two new stores were opened in the fourth quarter in Kristiansund and Narvik. Synsam Alta Brillehuset merged with Synsam Alta.

Synsam Finland opened two new stores in the fourth quarter, Synsam Myyrmanni in Helsinki and Synsam Zeppelin in Oulu, and Synsam Outlet Itis merged with Synsam Optilook Itäkeskus.

In Other and central functions, no changes occurred during the quarter.

One minor acquisition was completed, but this only had a marginal impact on the Group's sales and earnings.

THIRD QUARTER

Synsam Sweden opened two new stores during the quarter, Synsam Hyllinge and Synsam Giraffen, Kalmar. Synsam Giraffen is the first Synsam store to offer a Synsam Outlet range in addition to the regular Synsam range.

In Synsam Denmark, the franchise store Profil Optik Akureyri closed.

In Synsam Norway, a new store opened in Egersund during the third quarter.

Synsam Finland opened two new stores during the quarter, Synsam Maxinge in Turku and Synsam Skanssi in Jomala, Åland.

Two new audiologist clinics opened under Other and central functions in Sweden: one in Östersund and one in Luleå.

SECOND QUARTER

On 1 April 2023, Synsam acquired the operations of a former franchisee: the Synsam store at Järntorget in Gothenburg.

Synsam Sweden opened one new store in Tidaholm during the quarter, while Synsam Helsingborg Söder and Synsam Uppsala Trend merged with one store in each location.

Synsam Finland opened one new store – Synsam Kaari.

In Other and central functions, one Ai store in Sweden merged with another Synsam store.

The acquisition had a marginal impact on the Group's sales and earnings.

FIRST QUARTER

During the first quarter, five directly owned stores were opened, four stores merged with other stores and one store was converted from the Synsam Outlet concept to a regular store.

Synsam Sweden opened a new store in Söderköping in the first quarter. At the same time, two stores merged with other stores: one in Hallunda Centrum and the Synsam Outlet on Drottninggatan in Stockholm.

Synsam Norway opened two new stores in the first quarter: one in Trondheim (Sirkus) and one in Molde.

Synsam Finland opened two new stores: one in Järvenpää and one in Riihimiäki. Synsam Erottaja merged with another store at the beginning of the year, while the store Synsam Ideapark Lempäälä was converted from the Synsam Outlet to a regular store.

In Other and central functions, one Ai store in Sweden merged with another store.

No changes were made to the store portfolio in Synsam Denmark in the first quarter.

For information on the number of stores, refer to pages 26 and 30.

Number of stores and omniconcept

The total number of stores at the end of the quarter was 547 (536), of which 517 (503) were directly owned stores.

Synsam opened a total of 22 new stores in 2023, bringing the total number of new stores opened during the three-year period 2021–2023 to 85.

Synsam has created an integrated omni-concept that weaves together Synsam's digital and physical sales and service channels to provide the best product and service offering and purchasing and service experience for customers.

Important events during the year1

FOURTH QUARTER

In accordance with the decision from the Board of Directors of Synsam AB (publ), with the support of the authorisation granted by the Annual General Meeting held on 25 April 2023, 686,323 own shares in Synsam were purchased to ensure delivery of shares under LTIP 2023. Own shares were purchased through Nasdaq Stockholm from 15 to 29 December 2023 for an amount of SEK 30 million.
The production plant's second collection, Oscar Eide, a locally produced alternative offered to customers in the Nordic market, was launched for sale in stores.
In October, Synsam placed first in the category "Optical Retail & Accessories" at the Swedish Market Awards for the second year in a row! The jury made the following statement: "This year's winner has continued to expand, adding new stores, new innovative concepts and first-class customer service. The results of its ambitious and deliberate work are reflected in its performance measures, which are impressive in this turbulent time for retail. Congratulations, Synsam!".

THIRD QUARTER

• Participation in LTIP 2023 was subscribed for on 26 September 2023. No cost for the programme was charged to the third quarter of 2023. To ensure delivery of shares to participants in the programme, own shares will be purchased during the fourth quarter of 2023.

SECOND QUARTER

Synsam's Annual General Meeting was held on 25 April 2023. The Annual General Meeting resolved to reelect Peter Törnquist, Kenneth Bengtsson, Ann Hellenius, Helena Johnson, Terje List, Håkan Lundstedt, Gustaf Martin-Löf and Christoffer Sjøqvist, and to elect Anna Omstedt as a new Board member. Philip Røpcke had declined reelection. Peter Törnquist was also reelected as Chairman of the Board. Deloitte AB was elected as the new auditor for the period until the end of the next Annual General Meeting, with Johan Telander as auditor in charge.
A dividend of SEK 1.70 per share was also approved. The Annual General Meeting also resolved to introduce an additional long-term incentive programme (LTIP 2023) for the company's Group management and other selected key individuals, as per the Board's proposal. No cost for LTIP 2023 was charged to the second quarter of 2023. For other resolutions and documentation from the 2023 Annual General Meeting, refer to Synsam Group's website: www.synsamgroup.com.
Synsam wins the "Store salesperson of the year 2023." The Retail Awards is the gala award ceremony for the entire Swedish retail sector and was established to promote individual efforts that rewards companies and to highlight the best role models in the industry. Lova Lindgren, store salesperson at Synsam Outlet in Umeå, won the Retail Awards' gold medal. Lova was recognised for her successful sales results combined with customer service that help improve the company's positive performance.

FIRST QUARTER

Synsam held a capital markets day on 20 January 2023, where the primary message was that Synsam is adhering to its financial targets and investing in innovation and improved efficiency.
Synsam Group was named "Business Wellness Company of the Year" for 2023. The jury highlighted Synsam's innovative power, development of new business models and customer offerings, and ability to balance commercial drivers with sustainable targets.

¹ Refer to page 19 for events after the end of the period.

Performance per segment

Synsam Group comprises four segments: Sweden, Denmark, Norway and Finland. The segments include the sales derived from the various geographic markets, excluding sales that belong to Other and central functions, and the costs directly attributable to these sales. Certain costs are decided at the Group level and are therefore not included in the individual segments, including certain marketing expenses and Other central activities and functions, such as the treasury, finance and IT functions.

These costs are recognised in Other and central functions.

Net sales from external customers come from sales of goods (primarily sales of spectacles, sunglasses and contact lenses) as well as eye examinations (services) and revenue from Synsam Lifestyle. Net sales in the segments are also specifically monitored for Synsam Lifestyle.

Synsam Sweden

Synsam has a strong brand and market position in Sweden, which was strengthened considerably in 2023. This increase in sales was a result of Synsam's comprehensive offering including its attractive store concepts, own House Brands, digital solutions and Synsam Lifestyle subscriptions. An increase in the number of new stores also contributed to growth.

The gross margin for the fourth quarter and the full year was somewhat lower than the preceding year, partially as a result of measures to ensure value for money. The mix effect in terms of gross margin was positively impacted by a higher share of Synsam Lifestyle subscription renewals but negatively affected by a higher share of online sales. The cost programme provided positive effects in 2023 and increased efficiency reduced personnel costs as a share of sales. Which was partially offset by expenses for securing optician capacity in the short and long term, with Synsam EyeView now established in more than one third of Synsam

Sweden's stores. The EBITDA margin strengthened in the fourth quarter and the full year 2023.

The churn rate for Synsam Lifestyle amounted to 2.08 percent (1.91) for the fourth quarter and 8.36 percent (8.13) for the year.

Net sales for the quarter increased 8.3 percent. Organic growth was 7.8 percent (8.7) and like-forlike growth was 5.6 percent (6.7). EBITDA rose to SEK 252 million (213).

Growth		Q4	Jan-Dec
2023	%	MSEK	%	MSEK
Organic growth	7.8	53	11.5	291
Acquisitions	0.8	6	0.4	11
Currency	-	-	-	-
Franchise	0.2	-2	0.0	-1
Total growth	8.3	57	11.9	302

		Q4			Jan-Dec
MSEK	2023	2022	Δ%	2023	2022	Δ%
Net sales, Synsam Lifestyle	435	396		1,586	1,374
Net sales, other	304	286		1,250	1,160
Net sales, external	739	682	8.3	2,835	2,534	11.9
Organic growth, %	7.8	8.7		11.5	11.6
Gross profit	580	550	5.5	2,194	1,977	11.0
Gross margin, %	78.2	80.3		77.0	77.5
EBITDA	252	213	18.3	895	758	18.1
EBITDA margin, %	34.1	31.2		31.5	29.8
Number of stores/of which, directly owned	250 / 224	246 / 218		250 / 224	246 / 218

Net sales and adjusted EBITDA margin 0% 5% 10% 15% 20% 25% 30% 35% 40% 100 200 300 400 500 700 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 Net Sales, MSEK Adjusted EBITDA margin, %

Number of stores per quarter Sweden

Directly owned Franchise

Synsam Denmark

Organic growth was negative in the fourth quarter, in an intensely competitive and weaker consumer market. The Danish Credit Agreement Act was amended on 1 July 2023, impacting credit rating assessments for customers of the Danish Lifestyle offering, which negatively impacted sales both directly and indirectly during the second half of 2023.

The gross margin for the fourth quarter and the full year was lower than in the preceding year as a result of more intense competition. As a result of the weaker sales trend combined with cost increases due to inflation, the EBITDA margin was lower in the fourth quarter and full year 2023 compared with the year-earlier periods. Measures has been taken and are expected to have an effect over both the short and long term, such as the introduction of Lifestyle Cash in the second half of the year, where the customer receives the benefits of the Lifestyle solution without making partial payments. A pilot test of Synsam EyeView has commenced in Denmark.

The churn rate for Synsam Lifestyle amounted to 3.28 percent (2.99) for the fourth quarter and 11.96 percent (13.82) for the year.

Net sales for the quarter increased 3.9 percent. Organic growth was -0.4 percent (-5.3) and like-forlike growth was -0.4 percent (-5.9). DKK currency effects had a positive impact of SEK 12 million (20) on net sales in the quarter. EBITDA for the quarter amounted to SEK 51 million (58).

Growth		Q4		Jan-Dec
2023	%	MSEK	%	MSEK
Organic growth	-0.4	-1	0.3	3
Acquisitions	-	-	-	-
Currency	4.4	12	7.8	85
Franchise	0.0	0	0.0	0
Total growth	3.9	11	8.1	88

		Q4			Jan-Dec
MSEK	2023	2022	Δ%	2023	2022	Δ%
Net sales, Synsam Lifestyle	123	126		558	495
Net sales, other	154	140		623	598
Net sales, external	277	267	3.9	1,181	1,093	8.1
Organic growth, %	-0.4	-5.3		0.3	3.9
Gross profit	209	204	2.1	892	835	6.8
Gross margin, %	75.1	76.3		75.5	76.3
EBITDA	51	58	-12.7	281	277	1.4
EBITDA margin, %	18.3	21.8		23.7	25.3
Number of stores/of which, directly owned	114 / 112	116 / 113		114 / 112	116 / 113

Synsam Norway

Sales growth was weaker in the fourth quarter than in previous quarters but was strong for full-year 2023. The action programme initiated at the start of 2023 led to reduced operating expenses as a share of sales in the fourth quarter of 2023 compared with the year-earlier period and for full-year 2023. However, a lower gross margin resulted in a lower EBITDA margin for the fourth quarter and the full year. The market position has been strengthened during 2023, and in 2024, the focus is on enhancing efficiency. A new management has been in place for a year, which is beginning to have an impact on the results. The introduction of Synsam EyeView also aims to strengthen growth through increased optician capacity.

The churn rate for Synsam Lifestyle amounted to 2.22 percent (2.01) for the fourth quarter and 9.05 percent (9.06) for the year.

Net sales for the quarter decreased -2.7 percent. Organic growth amounted to 3.8 percent (5.6) and like-for-like growth to 1.2 percent (4.2). NOK currency effects had a negative impact of SEK -19 million (10) on net sales in the quarter. EBITDA amounted to SEK 48 million (53).

Growth		Q4		Jan-Dec
2023	%	MSEK	%	MSEK
Organic growth	3.8	11	8.9	101
Acquisitions	-	-	-	-
Currency	-6.7	-19	-4.9	-55
Franchise	0.2	1	0.1	1
Total growth	-2.7	-8	4.1	46

		Q4			Jan-Dec
MSEK	2023	2022	Δ%	2023	2022	Δ%
Net sales, Synsam Lifestyle	139	143		546	507
Net sales, other	137	141		629	622
Net sales, external	276	284	-2.7	1,175	1,128	4.1
Organic growth, %	3.8	5.6		8.9	4.9
Gross profit	210	224	-6.3	861	848	1.6
Gross margin, %	75.8	78.4		73.1	74.8
EBITDA	48	53	-8.9	236	239	-1.1
EBITDA margin, %	17.4	18.5		20.1	21.1
Number of stores/of which, directly owned	120 / 118	116 / 114		120 / 118	116 / 114

Net sales and adjusted EBITDA margin

Number of stores per quarter Norway

Synsam Finland

Synsam Finland experienced very strong growth in 2023 and in the fourth quarter and captured significant market share during the year. Synsam Finland continued to capture significant market shares in 2023 after climbing to fourth place in the Finnish market in 2022. This increase in sales was a result of Synsam's comprehensive offering including its attractive store concepts, own House Brands, digital solutions and Synsam Lifestyle subscriptions. Store expansion in 2022 and new establishments in 2023 resulted in a higher cost base. However, increased sales resulted in benefits of scale, leading to a higher year-on-year EBITDA margin.

The churn rate for Synsam Lifestyle amounted to 1.67 percent (1.53) for the fourth quarter and 7.64 percent (7.82) for the year.

Net sales for the quarter increased 42.9 percent. Organic growth was 35.9 percent (32.6). Like-for-like growth in the quarter was 18.9 percent (10.1). EUR currency effects had a positive impact of SEK 8 million (8) on net sales in the quarter. EBITDA rose to SEK 14 million (5).

Growth		Q4	Jan-Dec
2023	%	MSEK	%	MSEK
Organic growth	35.9	39	39.1	154
Acquisitions	-	-	-	-
Currency	7.0	8	11.1	43
Franchise	-	-	-	-
Total growth	42.9	46	50.2	197

		Q4		Jan-Dec
MSEK	2023	2022	Δ%	2023	2022	Δ%
Net sales, Synsam Lifestyle	80	55		290	187
Net sales, other	74	52		299	206
Net sales, external	154	108	42.9	590	393	50.2
Organic growth, %	35.9	32.6		39.1	41.0
Gross profit	108	77	40.0	408	275	48.1
Gross margin, %	70.3	71.7		69.1	70.0
EBITDA	14	5	176.1	75	35	112.7
EBITDA margin, %	9.2	4.8		12.6	8.9
Number of stores/of which, directly owned	55 / 55	50 / 50		55 / 55	50 / 50

Directly owned Franchise

Other information

Material risks and uncertainties

The company has reviewed and assessed its operational and financial risks as well as uncertainties, which are presented in the 2022 Annual Report. For a complete report on the risks deemed to impact the Group, refer to the 2022 Annual Report.

RISKS RELATED TO THE CURRENT GEOPOLITICAL SITUATION

Synsam has no direct or indirect exposure to Russia or Ukraine. Aside from the impact the war has had on the business environment in general, it has not had any material financial impact on Synsam. Synsam is monitoring the geopolitical and international security situation.

The ongoing Red Sea conflict will not significantly affect Synsam in the short or medium term.

INFLATION

The rising inflation around the world has impacted Synsam in the form of higher costs. Synsam is continuing to take action to ensure profitability.

Parent Company

Synsam AB (publ), corporate identity number 556946-3358, is the Parent Company of the Group. The Parent Company's operations comprise the ownership and management of shares in subsidiaries and certain management activities. The Parent Company's revenue for the fourth quarter amounted to SEK 6 million (6). The Parent Company posted a loss after net financial items of SEK -12 million (-53) for the quarter.

For full-year 2023, revenue totalled SEK 16 million (15) and the loss after net financial items was SEK -166 million (-177). Net financial items in 2023 were charged with higher interest expenses compared with the previous year, which was at the same time offset by positive currency effects.

Other and central functions

External net sales for Other and central functions primarily comprise sales in the Ai webshop, Synsam Hearing stores, sales of goods from the central warehouse to Synsam's franchise stores and a central component of sales for Synsam Lifestyle. External net sales for Other and central functions amounted to SEK 33 million (33) for the fourth quarter and to SEK 124 million (129) for the full year.

EBITDA for Other and central functions totalled SEK -18 million (-56) for the quarter and EBITDA amounted to SEK -46 million (-92) for full-year 2023. The EBITDA improvement within Other and Central Functions for the full year 2023 is explained by almost equal parts of efficiency enhancements and increased cost coverage for central services to the segments. Internal inventory gains for the central warehouse and the production unit are recognised in Other and central functions and had furthermore a negative impact of SEK 2 million (8) on EBITDA for the quarter and SEK 40 million (14) for the year.

Refer to the accounting policies for more information concerning the recognition of the central warehouse and segments.

Financial targets

Profitability Synsam Group targets an
Dividend policy Synsam Group aims to pay

Employees

The average number of full-time equivalent employees during the quarter was 3,466, of whom 2,831 were women (3,262, of whom 2,629 were women). The corresponding figure for full-year 2023 was 3,413, of whom 2,776 were women (3,145, of whom 2,539 were women).

Stockholm, 21 Februari 2024 Synsam AB (publ) 556946-3358

Håkan Lundstedt President and CEO

This report has not been reviewed by the company's auditors.

Events after the end of the period

In accordance with the decision from the Board of Directors of Synsam AB (publ), with the support of the authorisation granted by the Annual General Meeting held on 25 April 2023, 768,677 own shares in Synsam were purchased to ensure delivery of shares under LTIP 2023. Own shares were purchased through Nasdaq Stockholm from 2 to 17 January 2024 for an amount of SEK 36 million.

Dividend

The Board of Directors proposes a dividend of SEK 1.80 (1.70) per share.

Financial statements

Condensed consolidated income statement and statement of other comprehensive income

		Q4	Jan-Dec
MSEK	2023	2022	2023	2022
Net sales	1,479	1,373	5,905	5,277
Other operating income	18	21	79	72
Total revenue	1,497	1,395	5,985	5,349
Goods for resale	-345	-319	-1,447	-1,279
Other external expenses	-173	-179	-682	-667
Personnel costs	-631	-624	-2,415	-2,186
EBITDA	348	273	1,440	1,217
Depreciation of tangible
non-current assets	-148	-146	-591	-519
EBITA	200	127	850	698
Amortisation of intangible
non-current assets	-39	-37	-154	-146
EBIT	161	90	696	552
Financial income	75	60	273	184
Financial expenses	-144	-91	-554	-322
Profit before tax	92	59	415	415
Income tax	-30	-8	-105	-87
PROFIT FOR THE PERIOD	61	51	311	328
Other comprehensive income
Items that have been or may be
reclassified to profit/loss for the period:
-Translation differences for the period,
foreign subsidiaries	-78	24	-95	75
COMPREHENSIVE INCOME FOR THE PERIOD	-17	75	215	402
Profit for the period attributable to Parent Company shareholders	61	51	311	328
Comprehensive income for the period attributable to Parent Company shareholders	-17	75	215	402
Earnings per share before and after dilution, SEK¹	0.41	0.34	2.08	2.19

¹For information on the change in the number of shares and the average number of shares during the quarter and full year, refer to the section "Performance measures" on page 30.

Condensed consolidated statement of financial position

	31 Dec
MSEK	2023	2022
ASSETS
Intangible non-current assets	4,541	4,712
Tangible non-current assets	680	699
Right-of-use assets	779	878
Financial non-current assets	32	27
Deferred tax assets	72	60
Total non-current assets	6,104	6,375
Inventories	707	597
Accounts receivable	486	414
Current receivables	158	189
Cash and cash equivalents	582	444
Total current assets	1,932	1,644
TOTAL ASSETS	8,036	8,019
EQUITY AND LIABILITIES
Equity¹	2,516	2,584
Non-current loans from financial institutions	2,029	2,488
Non-current lease liabilities	440	592
Other non-current liabilities, interest-bearing	44	41
Deferred tax liabilities	513	514
Non-current liabilities, non interest-bearing	6	6
Total non-current liabilities	3,032	3,641
Current loans from financial institutions	464	-
Current lease liabilities	322	317
Other current liabilities, interest-bearing	0	1
Accounts payable	892	728
Other current liabilities, non-interest-bearing	811	748
Total current liabilities	2,489	1,794
TOTAL EQUITY AND LIABILITIES	8,036	8,019

Condensed consolidated statement of changes in equity

		31 Dec
MSEK	2023	2022
Equity at beginning of year	2,584	2,479
Dividends	-253	-255
Share savings program	11	5
Repurchase of own shares	-30	-47
Recalculation IFRS16	-12	-
Comprehensive income for the period	215	402
EQUITY AT END OF PERIOD¹	2,516	2,584

¹At the end of the reporting period on 31 December 2023, the share capital amounted to SEK 1 million (1), additional paid-in capital to SEK 4,306 million (4,306), the translation reserve to SEK 95 million (191) and retained losses including the loss for the period to SEK -1,886 million (-1,913). Equity is entirely attributable to Parent Company shareholders.

Condensed consolidated statement of cash flows

	Q4		Jan-Dec
MSEK	2023	2022	2023	2022
Operating activities
Profit before tax	92	59	415	415
Adjustments for other non-cash items	-2	-4	60	-34
Depreciation and amortisation	187	183	744	665
Income taxes paid	-31	8	-144	-153
Cash flow from operating activities
before changes in working capital	246	246	1,076	893
Cash flow from changes in working capital:
Change in inventories	0	3	-118	-148
Change in operating receivables	6	21	-53	20
Change in operating liabilities	153	-85	246	-75
Increased (-) / Decreased (+) funds tied up in working capital	158	-61	74	-203
Cash flow from
operating activities	404	185	1,150	690
Investments in intangible non-current assets	-7	-11	-32	-30
Investments in tangible non-current assets	-67	-96	-216	-352
Other investing activities	-4	0	-23	-3
Cash flow from
Investing activities	-79	-107	-270	-385
Repurchase of own shares	-30	-47	-30	-47
Amortisation of leasing liabilities	-149	-100	-429	-328
Dividends	-	-	-253	-255
Cash flow from
financing activities	-179	-147	-712	-631
CASH FLOW FOR THE PERIOD	147	-69	168	-326

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	446	508	444	755
Exchange rate differences in cash and cash equivalents	-11	4	-30	14
CASH AND CASH EQUIVALENTS AT END OF PERIOD	582	444	582	444

Condensed Parent Company income statement

		Q4
MSEK	2023	2022	2023	2022
Operating income	6	6	16	15
Operating expenses	-10	-13	-35	-36
EBIT	-5	-6	-19	-21
Financial items	-7	-46	-147	-155
Profit/loss after financial items	-12	-53	-166	-177
Appropriations	21	98	21	100
Profit/loss before tax	9	45	-145	-77
Income tax	-4	-1	-4	-1
PROFIT/LOSS FOR THE PERIOD	5	44	-149	-78

Parent Company comprehensive income statement

	Q4		Jan-Dec
MSEK	2023	2022	2023	2022
Profit/loss for the period	5	44	-149	-78
COMPREHENSIVE INCOME FOR THE PERIOD	5	44	-149	-78

Condensed Parent Company balance sheet

	31 Dec
MSEK	2023	2022
ASSETS
Financial non-current assets	6,927	6,927
Current receivables	48	111
Cash and cash equivalents	37	0
TOTAL ASSETS	7,012	7,038

EQUITY AND LIABILITIES
Restricted equity	1	1
Non-restricted equity	3,483	3,903
Total equity	3,484	3,904
Untaxed reserves	9	3
Non-current liabilities	2,429	2,886
Other current liabilities	1,074	229
Accrued expenses and deferred income	16	16
TOTAL EQUITY AND LIABILITIES	7,012	7,038

Notes

Note 1 Accounting policies

Synsam Group applies the International Financial Reporting Standards (IFRS) adopted by the EU. This year-end report has been prepared pursuant to IFRS, applying IAS 34 Interim Financial Reporting. The same accounting policies and calculation methods that were used for the 2022 Annual Report have been applied. No new standards, changes or interpretations of existing standards applied from 1 January 2023 are assessed to have had any material impact on the Group's earnings or financial position. This year-end report consists of pages 1–40 and should be read in its entirety. Disclosures according to IAS 34.16A are also presented in other sections of this interim report in addition to the financial statements and associated notes.

The Parent Company prepares its accounts in accordance with the Swedish Annual Accounts Act and RFR 2 and applies the same accounting policies and valuation methods as in the most recent Annual Report. The Parent Company does not apply IFRS 16 Leases in accordance with the exception in RFR 2.

Clarification concerning reporting of the Synsam Lifestyle subscription service Revenue from Synsam Lifestyle is calculated at present value and recognised after the agreement is entered into in conjunction with the customer receiving the spectacles ordered. For Synsam Lifestyle, revenue calculated at present value for the entire contract period is recognised when the customer receives their spectacles. In cases where a customer receives spectacles on multiple occasions, the revenue calculated at present value for the entire contract period is recognised for each pair as the customer receives them. Synsam has entered into agreements with external credit companies to sell the receivables from customers that arise as a result of the agreements. Agreements sold to external credit companies are not recognised in the company's own accounts after payment has been received.

A contact lens subscription can also be included as a product in Synsam Lifestyle. This contact lens

subscription is recognised under contact lens subscriptions, meaning that revenue is recognised upon the delivery of contact lenses, which takes place over time. Revenue from contact lens subscriptions is not included in revenue from Synsam Lifestyle. For further information, refer to Synsam AB's (publ) 2022 Annual Report, Note 1 Accounting policies and valuation principles.

Lifestyle Cash

Since 1 July 2023, Synsam Lifestyle subscriptions are also sold in Denmark without installment payments, known as 'Lifestyle Cash'. Revenues from Lifestyle Cash are recognized as regular merchandise sales.

Clarification of reporting between segments and Other and central functions

Synsam Group has been establishing central warehouse operations since the beginning of 2018. The majority of the Group's purchasing of frames is carried out by the central warehouse, which then sells the frames on to all stores in Sweden, Denmark, Norway and Finland. The central warehouse is a part of Other and central functions. The segments continuously utilise about 96 percent of the central warehouse's profit to reduce the cost of goods for resale based on the segments' actual purchasing volumes for the period. The warehouse's internal profit that arises from sales to the stores is recognised in Other and central functions. The central warehouse is operated as a separate profit centre, but is not sufficiently material to be presented as a separate segment in the financial statements and is not continuously monitored by the chief operating decision maker.

Note 2 Segment information

activities and functions, such as the treasury, finance and IT functions. These costs are recognised in Other and central functions. Net sales from external customers come from sales of goods (primarily sales of spectacles, sunglasses and contact lenses) as well as eye examinations (services) and revenue from Synsam Lifestyle. Net sales in the segments are also specifically monitored for Synsam Lifestyle.

QUARTERLY DATA, SEGMENTS AND OTHER AND CENTRAL FUNCTIONS

	2023 2022					2021
MSEK	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
NET SALES
Synsam Sweden	2,835	739	676	751	670	2,534	682	610	681	561	2,266	622	551	585	508
Synsam Denmark	1,181	277	284	322	298	1,093	267	283	286	257	1,018	261	268	273	216
Synsam Norway	1,175	276	308	307	284	1,128	284	292	295	257	1,020	259	263	267	231
Synsam Finland	590	154	155	156	125	393	108	104	100	81	266	75	70	64	58
Other and central
functions	124	33	27	30	34	129	33	30	36	30	98	28	25	25	21
GROUP	5,905	1,479	1,450	1,566	1,411	5,277	1,373	1,319	1,399	1,186	4,669	1,245	1,176	1,213	1,034
Of which, Synsam
Lifestyle
Synsam Sweden	1,586	435	370	403	378	1,374	396	321	359	298	1,120	315	257	282	265
Synsam Denmark	558	123	133	150	152	495	126	125	125	118	430	112	117	106	94
Synsam Norway	546	139	142	130	135	507	143	131	121	111	409	116	100	97	96
Synsam Finland	290	80	79	70	62	187	55	52	43	37	121	40	31	27	23
Other and central
functions	28	4	4	8	12	52	6	12	18	16	56	16	14	13	12
GROUP	3,008	780	729	760	739	2,614	728	641	666	580	2,136	600	520	526	491
EBITDA
Synsam Sweden	895	252	223	224	196	758	213	191	202	152	758	209	202	179	168
Synsam Denmark	281	51	69	81	79	277	58	80	78	61	280	74	78	80	48
Synsam Norway	236	48	61	83	45	239	53	55	79	52	274	62	67	90	54
Synsam Finland	75	14	25	22	13	35	5	14	8	8	37	7	12	9	9
Other and central
functions	-46	-18	-5	-8	-15	-92	-56	-38	-20	21	-161	-57	-45	-18	-41
Total EBITDA	1,440	348	373	401	318	1,217	273	303	347	293	1,189	296	314	340	239
Depreciation and
amortisation of tangible
and intangible non-current
assets	-744	-187	-190	-183	-185	-665	-183	-170	-159	-152	-555	-145	-142	-137	-132
EBIT	696	161	184	218	133	552	90	133	188	142	633	151	171	203	107
Net financial items	-281	-69	-68	-55	-89	-137	-31	-34	-59	-13	-470	-60	-141	-165	-104
Profit before tax	415	92	115	164	45	415	59	98	129	129	163	91	31	39	3

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QUARTERLY DATA, SEGMENTS AND OTHER AND CENTRAL FUNCTIONS, CONT.

			2023					2022					2021
MSEK	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
EBITDA margin, %
Synsam Sweden	31.5	34.1	32.8	29.7	29.2	29.8	31.2	31.2	29.5	26.9	33.3	33.5	36.5	30.4	32.9
Synsam Denmark	23.7	18.3	24.5	25.1	26.5	25.3	21.8	28.2	27.1	23.7	27.5	28.3	29.0	29.3	22.3
Synsam Norway	20.1	17.4	19.6	26.9	15.7	21.1	18.5	18.9	26.7	20.0	26.8	24.0	25.6	33.7	23.4
Synsam Finland	12.6	9.2	16.4	14.0	10.4	8.9	4.8	13.4	8.3	9.5	14.0	9.8	16.6	14.8	15.7
GROUP	24.1	23.2	25.2	25.3	22.3	22.8	19.6	22.7	24.5	24.4	25.1	23.5	26.3	27.6	22.8
Adjusted EBITDA
Synsam Sweden	895	252	223	224	196	758	213	191	202	152	758	209	202	179	168
Synsam Denmark	281	51	69	81	79	277	58	80	78	61	280	74	78	80	48
Synsam Norway	236	48	61	83	45	239	53	55	79	52	274	62	67	90	54
Synsam Finland	75	14	25	22	13	35	5	14	8	8	37	7	12	9	9
Other and central functions	-46	-18	-5	-8	-15	-92	-56	-38	-20	21	-76	-19	-22	-3	-31
GROUP	1,440	348	373	401	318	1,217	273	303	347	293	1,274	333	337	356	248
Adjusted EBITDA margin, %
Synsam Sweden	31.5	34.1	32.8	29.7	29.2	29.8	31.2	31.2	29.5	26.9	33.3	33.5	36.5	30.4	32.9
Synsam Denmark	23.7	18.3	24.5	25.1	26.5	25.3	21.8	28.2	27.1	23.7	27.5	28.3	29.0	29.3	22.3
Synsam Norway	20.1	17.4	19.6	26.9	15.7	21.1	18.5	18.9	26.7	20.0	26.8	24.0	25.6	33.7	23.4
Synsam Finland	12.6	9.2	16.4	14.0	10.4	8.9	4.8	13.4	8.3	9.5	14.0	9.8	16.6	14.8	15.7
GROUP	24.1	23.2	25.2	25.3	22.3	22.8	19.6	22.7	24.5	24.4	26.9	26.5	28.3	28.9	23.7
Number of stores per quarter, Group
Directly owned stores		517	511	504	504		503	487	487	476		467	456	451	446
Franchise stores		30	31	32	33		33	33	33	33		33	39	39	38
Total		547	542	536	537		536	520	520	509		500	495	490	484

For further information about the segments, refer to pages 13-17.

Note 3 Financial instruments

Disclosures on financial instruments measured at fair value

The Synsam Group's financial instruments are recognised and measured at amortised cost or at fair value through profit or loss. Measurement at fair value takes place by dividing the measurements into three levels, which are described in Note 17 of the 2022 Annual Report. The company's financial instruments measured at fair value are included in Level 3 and pertain to contingent considerations. At the end of the fourth quarter of 2023, contingent considerations amounted to SEK 0 million (-3) and pertained to acquisitions that took place during 2021.

The main methods and assumptions used to determine the fair value of the financial instruments are described in Note 17 of the 2022 Annual Report.

The existing financial instruments are of the same character as those described in the 2022 Annual Report. The fair value of financial instruments essentially corresponds to the carrying amount since they either have short maturities or, in the case of financial instruments with longer maturities, variable interest or other terms that enable the repayment of liabilities without additional fees. No hedge accounting is applied. The carrying amount of accounts receivable, other receivables, cash and cash equivalents, accounts payable and other liabilities constitutes a reasonable approximation of the fair value.

CHANGE LEVEL 3

	31 Dec
MSEK	2023	2022
CONTINGENT CONSIDERATION
Opening balance	3	8
Settled liabilities	-3	-
Reversals	0	-5
TOTAL	0	3

THE GROUP´S FINANCIAL ASSETS AND LIABILITIES BY MEASURESMENT CATEGORY 31 DECEMBER 2023

			Fair value through
		Fair value through	other comprehensive	Total carrying
MSEK	Amortised cost	profit or loss	income	amount
FINANCIAL ASSETS
Financial non-current assets	32			32
Accounts receivable	486			486
Receivables for goods delivered but not invoiced	23			23
Cash and cash equivalents	582			582
TOTAL	1,123	-	-	1,123
FINANCIAL LIABILITIES
Interest-bearing non-current liabilities¹	2,469			2,469
Interest-bearing current liabilities¹	786			786
Non-interest-bearing current liabilities	892	0		893
TOTAL	4,147	0	-	4,147

¹Includes SEK 762 million in lease liabilities that are recognised in accordance with IFRS 16 Leases and not in accordance with IFRS 9 Financial Instruments. Recognised as financial liability.

THE GROUP´S FINANCIAL ASSETS AND LIABILITIES BY MEASURESMENT CATEGORY 31 DECEMBER 2022

			Fair value through
		Fair value through	other comprehensive	Total carrying
MSEK	Amortised cost	profit or loss	income	amount
FINANCIAL ASSETS
Financial non-current assets	27			27
Accounts receivable	414			414
Receivables for goods delivered but not invoiced	17			17
Cash and cash equivalents	444			444
TOTAL	902	-	-	902
FINANCIAL LIABILITIES
Interest-bearing non-current liabilities¹	3,080			3,080
Non-interest-bearing non-current liabilities	-	1		1
Interest-bearing current liabilities¹	317			317
Non-interest-bearing current liabilities	728	3		731
TOTAL	4,125	3	-	4,129

¹Includes SEK 909 million in lease liabilities that are recognised in accordance with IFRS 16 Leases and not in accordance with IFRS 9 Financial Instruments. Recognised as financial liability.

Note 4 Related-party transactions

The nature and amounts of the related-party transactions that took place during the period are in line with the description in the 2022 Annual Report.

Note 5 Events after the end of the period

For information on events after the end of the period, refer to page 19.

Note 6 Acquisitions and establishments

For information on acquisitions and establishments during the period, refer to page 11.

Note 7 Provision for tax dispute

One of the subsidiaries in the Group has an ongoing tax dispute with the Swedish Tax Agency related to the deductibility of intra-Group interest for the 2014 and 2015 income-tax returns. At the end of 2023, a provision corresponding to the reconsideration decision was reserved for a total of SEK 52.8 million, plus penalty interest. The legal process is ongoing, and Synsam's assessment is that the provision is sufficient to fully cover the dispute and the remaining risk pertains to a possible liquidity flow in the event that the subsidiary loses the tax dispute.

The Group is also engaged in a tax dispute in Finland regarding VAT and arrears of an amount totalling approximately SEK 2.7 million for the tax years 2015 and 2016. The Finnish subsidiary appealed the Finnish tax authority's decision to the administrative court, but the appeal was rejected on 9 June 2021.

An application for leave to appeal as well as the appeal was then submitted to the Supreme Administrative Court of Finland on 5 August 2021. In November 2022, the Supreme Administrative Court of Finland handed down a judgement, leading the Tax Agency to submit questions to Synsam in December 2022 that the company was asked to answer. Synsam submitted its answers to the Tax Agency in January 2023. In March 2023, Synsam received a proposed decision from the Tax Agency in which Synsam received a certain degree of support for its reasoning. Synsam submitted its answers to the Tax Agency in May 2023. Also in May, Synsam received a decision from the Tax Agency that did not differ from the proposed decision. The decision led to a decline in exposure for the second quarter of 2023. In July 2023, Synsam submitted an appeal of the decision to the Tax Agency. The Group has made a provision of SEK 2.1 million in the accounts for 2015 and 2016, including interest on overdue payments.

In addition, the Group has made a provision of SEK 0.7 million in the accounts for 2017 and onwards, including interest on overdue payments. The Finnish subsidiary has adjusted its VAT reporting for 2017 and the following years according to the Group's interpretation of the tax authority's new guidelines on the matter pertaining to the VAT audit of the 2015 and 2016 financial years. The subsidiary's adjustment is in line with the position advocated for by the vision and eye health sector organisation in Finland (NÄE ry). If the subsidiary were to adjust its VAT reporting for 2017 and the following years according to the tax authority's interpretation of these guidelines, for example due to a disadvantageous outcome in the aforementioned tax dispute in Finland, this could have a negative effect of SEK 1.1 million on the Group's profit or loss. The total possible negative effect on the Group's income statement, including 2015 and 2016, amounts to SEK 1.7 million.

Other financial information

QUARTERLY DATA

			2023					2022					2021
MSEK	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
Total revenue	5,985	1,497	1,479	1,584	1,425	5,349	1,395	1,335	1,415	1,204	4,728	1,260	1,191	1,231	1,045
EBITDA	1,440	348	373	401	318	1,217	273	303	347	293	1,189	296	314	340	239
EBITA	850	200	222	257	171	698	127	169	224	178	773	186	206	238	143
EBIT	696	161	184	218	133	552	90	133	188	142	633	151	171	203	107
Net financial items	-281	-69	-68	-55	-89	-137	-31	-34	-59	-13	-470	-60	-141	-165	-104
Profit before tax	415	92	115	164	45	415	59	98	129	129	163	91	31	39	3
Income tax (expense)	-105	-30	-25	-24	-25	-87	-8	-18	-31	-30	-112	-44	-29	-25	-15
Profit/loss for the period	311	61	90	140	19	328	51	80	97	99	51	47	2	14	-12
EBITDA margin, %	24.1	23.2	25.2	25.3	22.3	22.8	19.6	22.7	24.5	24.4	25.1	23.5	26.3	27.6	22.8
EBITA margin, %	14.2	13.3	15.0	16.2	12.0	13.1	9.1	12.7	15.8	14.7	16.3	14.8	17.3	19.4	13.6
EBIT margin, %	11.6	10.7	12.4	13.8	9.4	10.3	6.5	9.9	13.3	11.8	13.4	12.0	14.4	16.5	10.3
Investments, excluding acquisitions ¹	259	76	49	54	79	389	110	51	132	96	275	114	59	60	43
Maintenance investments	166	48	24	45	50	194	61	39	49	44	166	70	30	37	30
Expansion investments	75	25	20	6	24	128	43	14	33	39	89	37	21	20	11
Strategic investments	18	4	5	3	5	66	6	-2	49	12	21	7	8	4	2
Earnings per share, SEK ²	2.08	0.41	0.61	0.94	0.13	2.19	0.34	0.53	0.65	0.66	0.60	0.38	0.02	0.19	-0.17

¹Investments in this table include leases for tangible non-current assets, such as cars and optical equipment. However, these have not been included in the Group's cash flow as cash flow from investing activities.

²For information on the change in the number of shares and the average number of shares, refer to the following table "Performance measures."

PERFORMANCE MEASURES

		Q4		Jan-Dec
MSEK	2023	2022	2023	2022
Sales measures
Net sales	1,479	1,373	5,905	5,277
Net sales growth, %	7.7	10.3	11.9	13.0
Organic growth, %	7.4	6.8	10.3	10.6
Earnings measures
EBIT	161	90	696	552
EBITA	200	127	850	698
EBITDA	348	273	1,440	1,217
Margin measures
Gross margin, %	76.6	76.7	75.5	75.8
EBIT margin, %	10.7	6.5	11.6	10.3
EBITDA margin, %	23.2	19.6	24.1	22.8
EBITA margin, %	13.3	9.1	14.2	13.1
Cash flow measures
Cash flow from operating activities	404	185	1,150	690
Cash flow from operating activities / EBITDA, %	116.2	67.6	79.9	56.7
Capital structure
Net debt²	2,720	2,969	2,720	2,969
Net debt / EBITDA ²	n/a	n/a	1.89	2.44
Equity/assets ratio, %	31.3	32.2	31.3	32.2
Return
Return on equity, %	n/a	n/a	12.2	12.9
The share
Number of shares at end of period ¹	148,368,677	149,055,000	148,368,677	149,055,000
Average number of shares during the period ¹	148,946,139	149,342,888	149,027,561	149,834,372
Earnings per share before and after dilution, SEK ¹	0.41	0.34	2.08	2.19

¹The total number of shares amounts to 150,000,000, of which 1,631,323 are shares in own custody at the end of the period. Buyback of 686,323 own shares took place during the fourth quarter 2023 and buyback of 945,000 own shares took place during the fourth quarter 2022 in order to ensure delivery of shares under LTIP 2023 and LTIP 2022.

NUMBER OF STORES

	Sweden		Denmark		Norway		Finland		Other		Group
	31 Dec		31 Dec		31 Dec 31 Dec			31 Dec		31 Dec
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022

Directly owned	224	218	112	113	118	114	55	50	8	8	517	503
Franchise	26	28	2	3	2	2	-	-	-	-	30	33
Total	250	246	114	116	120	116	55	50	8	8	547	536

AVERAGE NUMBER OF EMPLOYEES

	Q4		Q4			Jan-Dec	Jan-Dec
	of whom,			of whom,		of whom,		of whom,
	2023	women	2022	women	2023	women	2022	women
Synsam Sweden	1,669	1,428	1,593	1,339	1,646	1,407	1,533	1,295
Synsam Denmark	566	456	578	455	569	458	564	448
Synsam Norway	656	527	642	504	662	524	632	499
Synsam Finland	322	277	259	221	298	255	228	191
Other and central functions	254	142	190	109	238	132	187	107
Total	3,466	2,831	3,262	2,629	3,413	2,776	3,145	2,539

Average number of employees during the period, full-time equivalents (FTEs).

²As of the balance sheet date, cash and cash equivalents linked to holding accounts with financial institutions for the repurchase of shares as collateral for LTIP 2023 were pledged and were therefore added back in the calculation of net debt.

Reconciliation of alternative performance measures

Synsam applies the ESMA Alternative Performance Measures Guidelines. An alternative performance measure is a financial measure of a company's past or future earnings performance, financial position or cash flow that is not defined in accordance with IFRS. Detailed calculations of the following alternative performance measures are presented below: organic growth, like-for-like growth, EBITDA, adjusted EBITDA, EBITDA margin, adjusted EBITDA margin, EBITA, adjusted EBITA, EBITA margin, adjusted EBITA margin, gross profit, gross margin, the churn rate for Synsam Lifestyle, net debt and investments. These alternative performance measures are used by the management to monitor the Group's operations. Synsam is of the opinion that these performance measures provide valuable supplementary information to enable management, investors and other stakeholders to assess the company's performance. EBIT provides information about the Group's operating profitability. EBITDA and EBITA also provide information about the Group's operating profitability but before the non-cash items of depreciation and amortisation of tangible and intangible non-current assets with respect to

EBITDA and before amortisation of intangible noncurrent assets with respect to EBITA. Adjusted EBITDA and Adjusted EBITA provide better information about the Group's capacity to generate earnings than EBITDA and EBITA since the adjusted measures do not include items affecting comparability. Gross profit is a performance measure that shows the Group's profit in the form of total revenue less costs for goods for resale. Organic growth provides information about the Group's capacity to generate growth through its concepts, excluding acquisitions, currency effects and franchise sales, but including the opening of new stores. Like-for-like growth provides information about the Group's capacity to generate growth in comparable stores. Churn rate, Synsam Lifestyle is an important tool for measuring customer loyalty in the subscription business. Net debt provides the most relevant information concerning the Group's financial position and is also included as a component of the Group's financial target. Investments provide information about the types of investments the Group makes and a reconciliation against cash flow.