Continued organic growth by consistent strategy execution

1 JULY–30 SEPTEMBER 2024

Net sales increased to SEK 1,559 million (1,450), up 7.6 percent. Organic growth totalled 9.5 percent (7.0)
Net sales from spectacles subscriptions increased 11.0 percent (13.7)
The gross margin was 73.9 percent (74.9)
EBITDA¹ increased to SEK 381 million (373) and the EBITDA margin was 24.1 percent (25.2)
EBITA amounted to SEK 220 million (222) and the EBITA margin was 13.9 percent (15.0)
EBIT increased to SEK 187 million (184) and the EBIT margin was 11.8 percent (12.4)
Cash flow from operating activities increased to SEK 238 million (104)
Net debt amounted to SEK 2,733 million (2,953) at the end of the period, compared with SEK 2,720 million at year-end 2023
Profit after tax amounted to SEK 66 million (90)
Earnings per share before and after dilution totalled SEK 0.44 (0.61)

1 JANUARY–30 SEPTEMBER 2024

Net sales increased to SEK 4,804 million (4,427), up 8.5 percent. Organic growth totalled 8.9 percent (11.4)
Net sales from spectacles subscriptions increased 12.6 percent (18.1)
The gross margin was 74.6 percent (75.1)
EBITDA¹ increased to SEK 1,208 million (1,092) and the EBITDA margin increased to 24.9 percent (24.3)
EBITA increased to SEK 738 million (650) and the EBITA margin increased to 15.2 percent (14.5)
EBIT increased to SEK 633 million (535) and the EBIT margin increased to 13.0 percent (11.9)
Cash flow from operating activities increased to SEK 890 million (746)
Profit after tax increased to SEK 290 million (249)
Earnings per share before and after dilution increased to SEK 1.96 (1.67)

Organic growth, quarter¹ EBITDA margin, Organic growth, LTM¹ EBITDA margin, LTM¹ +9.5% +24.1% +8.6% +24.5%

¹ Refer to the Group's financial targets on page 19. Since no items affecting comparability were reported for 2024 or the preceding year, adjusted EBITDA corresponds with EBITDA, and the related margins also correspond with each other.

FINANCIAL PERFORMANCE MEASURES

		Q3			Jan-Sep			Oct-Sep Jan-Dec
MSEK	2024	2023	Δ%	2024	2023	Δ%	23/24	2023
Net sales	1,559	1,450	7.6	4,804	4,427	8.5	6,283	5,905
Organic growth, %¹	9.5	7.0		8.9	11.4		8.6	10.3
Gross margin, %¹	73.9	74.9		74.6	75.1		75.1	75.5
EBITDA¹	381	373	2.1	1,208	1,092	10.6	1,556	1,440
EBITDA margin, %¹	24.1	25.2		24.9	24.3		24.5	24.1
EBITA¹	220	222	-0.9	738	650	13.5	938	850
EBITA margin, %¹	13.9	15.0		15.2	14.5		14.7	14.2
EBIT	187	184	1.8	633	535	18.2	793	696
EBIT margin, %	11.8	12.4		13.0	11.9		12.5	11.6
Profit after tax	66	90	-27.5	290	249	16.2	351	311
Earnings per share before and after dilution, SEK²	0.44	0.61	-26.9	1.96	1.67	17.2	2.37	2.08
Cash flow from operating activities	238	104	129.7	890	746	19.4	1,295	1,150
Cash flow from operating activities/Adjusted EBITDA, %¹	62.4	27.7		73.7	68.3		83.2	79.9
Net debt/Adjusted EBITDA¹	n/a	n/a		1.76	2.16		1.76	1.89

¹For information on the calculation of these alternative performance measures, refer to pages 31-37. The performance measure net debt/Adjusted EBITDA is calculated based on a rolling 12-month basis for January-September. Since no items affecting comparability were reported for 2024 or the preceding year, adjusted EBITDA corresponds with EBITDA, and the related margins also correspond with each other.

NET SALES AND ADJUSTED EBITDA MARGIN PER QUARTER

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 29-30.

Household purchasing power has fallen drastically in recent years, and although consumers now have a more positive view of the future, their purchasing habits remain highly cautious. We are also seeing that competition for consumers is generally more challenging while the market for optical retail and eye health in the Nordics remains competitive and campaign-driven.

In this challenging market, we are consistently executing our strategy and making tactical decisions, also in terms of rate of establishment, to drive growth. In this quarter, our tactical choices have negatively affected the gross margin and also operating costs in the short term, with a negative impact on the EBITDA margin. But our improved market position and growing customer base will have positive effects going forward.

Thanks to our strategy and actions, Synsam achieved organic growth of 9.5 percent in the third quarter, despite the prevailing market situation, and thereby a continued positive customer inflow. Price sensitivity has been an important factor for customers in this market, and campaigns to drive growth reduced the gross margin in the quarter. EBITDA increased to SEK 381 million (373) during the quarter and the EBITDA margin was 24.1 percent (25.2), with a higher rate of establishment impacting the margin. For the nine-month period, EBITDA rose to SEK 1,208 million (1,092) and the EBITDA margin increased to 24.9 percent (24.3).

Continued positive trend in subscriptions

Net sales from Synsam Lifestyle spectacles subscriptions increased 11 percent to SEK 809 million (729) during the quarter. The churn rate remained stable at 2.60 percent, compared with 2.51 percent in the preceding quarter, and the number of Lifestyle customers amounted to approximately 683,000 (approximately 595,000) at the end of the quarter. As of 30 September 2024, the total number of subscription customers (those who either have a Lifestyle subscription or who have a contact lens subscription) amounted to approximately 817,000, net sales from the cash business increased 4 percent to SEK 750 million (721) during the quarter.

High rate of establishment. Plan for 2024–2026 remains firm

Our goal for 2024–2026 is to establish 90 new stores, and Synsam established 32 new stores during the first nine months of 2024, 10 of which were established during the quarter. Between 14 and 16 new stores will be established in the fourth quarter, bringing the total number of stores established in 2024 to between 46 and 48, which means that we are deliberately well ahead of schedule. The recession has created more opportunities to establish stores, which we have acted on in 2024. Our new stores are quickly achieving profitability thanks to our strong concepts and our effective analysis and method for establishments. Through our focus on establishing a greater presence in smaller towns, we are also achieving strong demand directly and benefiting from lower rents.

Upgrades and relocations are also an essential part of our establishment strategy and for example, in the third quarter we launched Sweden's first spectacles center at Westfield Mall of Scandinavia in Solna outside Stockholm. The store is an eye health destination with full access to clinical services from early morning to late into the evening. The store is the first in Sweden to offer eye examinations until 9:00 p.m.

Healthy trend in Denmark. Weaker earnings performance in Sweden. Stable organic growth in Norway and Finland

Denmark continues to display a positive trend and posted organic growth of 5.6 percent in the quarter and a strengthened gross margin and EBITDA margin. The measures that have been taken have positively impacted Denmark.

In the quarter, Sweden has slightly lower organic growth than previous quarters, but has further improved market shares, and Norway, in comparison, has a higher growth. The subscription business was the most important driver of growth in both Sweden and Norway. Organic growth remained strong in Finland, which has a highly competitive market.

The EBITDA margin in all countries except Denmark was negatively impacted by a lower gross margin due to planned campaigns to drive growth, by new establishments, as well as costs for rolling out Synsam EyeView in Sweden and Norway.

Continued focus on cost

The cost programmes introduced in 2023 have had a positive effect, and a third cost programme has now been launched with the aim of reducing the cost base for operating expenses and offsetting any inflationdriven cost increases. The total annual effect amounts to SEK 75 million, the majority of which is to be realised in 2025.

Consistent strategy execution

Our strategy – based on making the right types of establishments, focusing on Synsam Lifestyle, an efficient organization with a cost focus, being highly innovative and having a strong service offering – has strengthened Synsam's position. During the quarter, we continued our investments in new establishments, rollout of Synsam EyeView and training programs, and decided on continued cost programs to secure our margins for the future.

We can also see that both Synsam and our industry will be positively impacted by the forthcoming interest-rate cuts that will result in greater consumer willingness to opt for higher price points.

In addition to the fact that we are getting older and living longer, we also see a clear trend of visual defects becoming more common among younger people. We therefore have an important role to play in supporting and improving eye health – not only to ensure that people can see well, but also look good.

Backed by Synsam's strategy, which focuses on increasing accessibility through our stores and integrating technological tools, we are well equipped to tackle these challenges. Our aim is to raise awareness about eye health and to offer solutions that provide a better quality of life for everyone, regardless of age. By making it easier for people to access eye care and high-quality products, we will ensure profitable growth for many years to come. Synsam's journey has only just begun.

Håkan Lundstedt President and CEO

Financial performance

Group net sales

1 JULY–30 SEPTEMBER 2024

Net sales increased 7.6 percent to SEK 1,559 million (1,450). Organic growth amounted to 9.5 percent (7.0) and like-for-like growth to 6.3 percent (3.9). Acquisitions impacted sales in the quarter by SEK 7 million, corresponding to 0.4 percentage points. Currency translation effects impacted net sales negatively by SEK -34 million, corresponding to -2.3 percentage points.

The active customer base for Synsam Lifestyle subscriptions increased by approximately 16,000 customers during the quarter to 683,000 customers (595,000), up 15 percent compared with the year-earlier period and up 10 percent since year-end 2023. 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 third quarter was 2.60 percent (2.04).

Net sales from the Synsam Lifestyle spectacles subscription increased 11 percent to SEK 809 million (729), with an increase noted in every segment.

Net sales from the cash business increased 4 percent to SEK 750 million (721), of which net sales from Synsam Group's contact lens subscriptions amounted to SEK 106 million (106) and net sales from Synsam Group's online sales increased to SEK 55 million (41). The active customer base for Synsam Group's contact lens subscriptions amounted to approximately 197,000 customers on 30 September 2024 compared with approximately 173,000 on 30 September 2023, up 14 percent.

1 JANUARY–30 SEPTEMBER 2024

Net sales increased 8.5 percent to SEK 4,804 million (4,427). Organic growth was 8.9 percent (11.4) and like-for-like growth was 6.1 percent (8.1). The effect of acquisitions is deemed to have had an impact of about SEK 21 million on sales, corresponding to 0.5 percentage points. Currency translation effects impacted net sales negatively by SEK -36 million, corresponding to -0.8 percentage points.

Net sales from Synsam Lifestyle spectacles subscriptions increased 13 percent to SEK 2,508 million (2,228), with the Sweden, Norway and Finland segments contributing to this increase.

Net sales from the cash business increased 4 percent to SEK 2,295 million (2,199), of which net sales from Synsam Group's contact lens subscriptions increased to SEK 317 million (276) and net sales from Synsam Group's online sales increased to SEK 173 million (138).

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, LTM Q3 2024, Synsam Lifestyle

Total net sales

External net sales per segment and Other and central functions

		Q3				Jan-Dec
Breakdown, MSEK	2024	2023	Δ%	2024	2023	Δ%	2023
Synsam Sweden	715	676	5.8	2,284	2,097	8.9	2,835
Synsam Denmark	290	284	2.2	911	904	0.8	1,181
Synsam Norway	316	308	2.7	944	898	5.1	1,175
Synsam Finland	180	155	16.4	529	436	21.3	590
Other and central functions	58	27	111.5	136	91	48.7	124
Group, total	1,559	1,450	7.6	4,804	4,427	8.5	5,905

Like-for-like growth¹

%	Sweden	Denmark	Norway	Finland	Group
Jul-Sep 2024	2.3	5.1	6.3	8.4	6.3
Jan-Sep 2024	5.8	1.3	5.9	9.3	6.1

¹For information on the calculation of alternative performance measures, refer to pages 31-37.

Growth¹

		Q3	Jan-Sep
2024	%	MSEK	%	MSEK
Organic growth	9.5	138	8.9	395
Acquisitions	0.4	7	0.5	21
Currency	-2.3	-34	-0.8	-36
Franchise	-0.1	-1	-0.1	-4
Total growth	7.6	110	8.5	377

¹For information on the calculation of alternative performance measures, refer to pages 31-37.

Lifestyle sales (%-share) per quarter

Organic growth (%) per quarter

Group earnings

1 JULY–30 SEPTEMBER 2024

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

EBITDA rose SEK 8 million to SEK 381 million (373), corresponding to an EBITDA margin of 24.1 percent (25.2). The earnings performance for the quarter was a result of the effects impacting the gross margin as well as a large number of new establishments.

Gross profit

The gross margin for the third quarter was 73.9 percent (74.9). The gross margin decreased in the third quarter of 2024 compared with the year-earlier quarter, partially as a result of an efficient campaign strategy and sales mix.

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

EBITA amounted to SEK 220 million (222) and the EBITA margin was 13.9 percent (15.0). The decline in earnings was due to the same factors that impacted EBITDA. Depreciation for the quarter increased slightly as a result of a higher pace of greenfield expansion.

Additional earnings information

EBIT increased to SEK 187 million (184) as a result of the same factors that impacted EBITA. The EBIT margin was 11.8 percent (12.4).

Profit before tax amounted to SEK 91 million (115) and profit after tax to SEK 66 million (90).

Net financial items amounted to SEK -96 million (-68) for the third quarter. For further information about net financial items, refer to Note 3 Financial income and expenses on page 26.

The Group's tax expense totalled SEK -26 million (-25), corresponding to an effective tax rate of 28 percent (21). Non-capitalised loss carryforwards and non-deductible interest expense had a negative impact on tax in the quarter.

1 JANUARY–30 SEPTEMBER 2024

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

EBITDA rose SEK 116 million to SEK 1,208 million (1,092), corresponding to an EBITDA margin of 24.9 percent (24.3). The increase in earnings was largely due to increased sales and the cost programmes. 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 and two of the ongoing cost and restructuring programmes.

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

EBITA increased to SEK 738 million (650) and the EBITA margin increased to 15.2 percent (14.5). The increase in earnings was due to the same factors that impacted EBITDA. Depreciation increased slightly as a result of a higher pace of greenfield expansion.

Earnings per share per quarter, SEK

Additional earnings information

EBIT increased to SEK 633 million (535) as a result of the same factors that impacted EBITA. The EBIT margin increased to 13.0 percent (11.9).

Profit before tax increased to SEK 381 million (324) and profit after tax increased to SEK 290 million (249).

Net financial items amounted to SEK -252 million (-212). For further information about net financial items, refer to Note 3 Financial income and expenses on page 26.

The Group's tax expense totalled SEK -91 million (-74), corresponding to an effective tax rate of 24 percent (23). Non-capitalised loss carryforwards and non-deductible interest expense had a negative impact on tax.

		Q3			Jan-Sep	Jan-Dec
MSEK	2024	2023	Δ%	2024	2023	Δ%	2023
EBITDA per segment
Synsam Sweden	222	223	0.0	720	643	12.0	895
Synsam Denmark	74	69	6.5	233	230	1.6	281
Synsam Norway	53	61	-12.7	193	188	2.5	236
Synsam Finland	20	25	-19.5	62	60	2.5	75
Other and central functions	11	-5	333.3	0	-29	101.2	-46
Total EBITDA	381	373	2.1	1,208	1,092	10.6	1,440
Depreciation of tangible non
current assets	-161	-151		-470	-442		-591
Total EBITA	220	222	-0.9	738	650	13.5	850
Amortisation of intangible non
current assets	-33	-39		-105	-115		-154
EBIT	187	184	1.8	633	535	18.2	696
Net financial items	-96	-68		-252	-212		-281
Profit before tax	91	115	-20.7	381	324	17.7	415
Income tax PROFIT/LOSS FOR THE	-26	-25		-91	-74		-105
PERIOD	66	90	-27.5	290	249	16.2	311

Net sales and adjusted EBITDA margin per quarter

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 39. The churn rate for the third quarter was 2.60 percent (2.04). The annual churn rate for 2023 was 9.09 percent (9.45).

Synsam Group's quarterly churn rate, Synsam Lifestyle

Cash flow

OPERATING ACTIVITIES

Cash flow from operating activities increased to SEK 238 million (104) for the third quarter and SEK 890 million (746) for the nine-month period. Income taxes paid totalled SEK -17 million (-18) for the quarter and SEK -90 million (-113) for the nine-month period.

INVESTING ACTIVITIES

Investments in tangible and intangible non-current assets amounted to SEK 92 million (48) for the third quarter and SEK 267 million (173) for the nine-month period. The increase in investments in the third quarter was primarily due to a higher rate of store establishments compared with the year-earlier period. Refer to "Other financial information" on page 29 and "Reconciliation of alternative performance measures" on pages 31–37. Businesses were acquired for a total of SEK - million (0) during the quarter and SEK 8 million (17) during the first nine months of the year; refer to the section "Acquisitions and establishments".

FINANCING ACTIVITIES

Cash and cash equivalents totalled SEK 567 million (446) at the end of the period. Cash and cash equivalents on 31 December 2023 totalled SEK 582 million. Exchange rate differences in cash and cash equivalents amounted to SEK -23 million (5) for the quarter. 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 nine-month period. During the nine-month period, own shares were repurchased for SEK 36 million (-) and a dividend of SEK 266 million (253) was paid to Synsam's shareholders.

FINANCIAL POSITION

Loans from financial institutions amounted to SEK 2,513 million (2,520), of which SEK 468 million (-) were current liabilities, compared with SEK 2,493 million on 31 December 2023, of which SEK 464 million were current liabilities. Unutilised credit lines amounted to SEK 940 million (940). Lease liabilities totalled SEK 778 million (865) on 30 September 2024, compared with SEK 762 million on 31 December 2023. Net debt totalled SEK 2,733 million (2,953) at the end of the period and SEK 2,720 million at the end of the year.

Share repurchases of SEK 36 million (-) took place during the ninemonth period without impacting net debt since a corresponding amount was pledged and reversed in the calculation of net debt as of 31 December 2023.

Currency effects on loans from financial institutions had a positive impact of SEK 4 million (22) on net debt during the quarter.

Net debt was also negatively impacted in the nine-month period by a dividend of SEK 266 million (253) paid to Synsam's shareholders.

If net debt had been calculated not taking IFRS 16 Leases into account, it would have amounted to SEK 1,967 million (2,101) and to SEK 1,971 million on 31 December 2023.

Acquisitions and establishments

THIRD QUARTER

10 directly owned stores were opened during the third quarter. Two stores were also combined during the period.

Synsam Sweden opened two new stores during the quarter, Synsam Hemse and Synsam Sunne. At the same time, Kista Outlet was merged with the Kista Mega store.

In Synsam Denmark, a new store opened in Svedborg during the third quarter.

Synsam Norway opened five new stores during the quarter: Synsam Bergen Laksevåg; Synsam Sortland; Synsam Os; Synsam Arendal and Synsam Løren.

Synsam Finland opened two new stores: one in Jakobstad and one in Jyväskylä.

In Other and central functions, there were no changes in the store portfolio during the third quarter.

SECOND QUARTER

13 directly owned stores were opened during the second quarter, of which two were audiologist clinics. Two stores were also combined during the period.

During the quarter, Synsam Sweden opened seven new stores: Synsam Mariefred, Synsam Hammarby Sjöstad, Synsam Norra Djurgårdsstaden, Synsam Alvik, Synsam Hultsfred, Synsam Skurup and Synsam Växjö Outlet. Two smaller stores in Växjö were also combined into a large megastore.

In Synsam Norway, a new store opened in Hønefoss during the second quarter.

In Synsam Finland, three new stores opened in Jyväskylä, Ekenäs and Imatra.

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

In Other and central functions, two audiologist clinics opened in Falun and Visby.

FIRST QUARTER

During the first quarter, nine directly owned stores were opened, the operations of a former franchisee were acquired, two franchise stores were closed, one store merged with another store and one store was converted from the Synsam Outlet concept to a regular store.

Synsam Sweden opened four new stores during the quarter: Synsam Fagersta, Synsam Malung, Synsam Barkaby and Synsam Vara. The former franchise store Synsam Örnsköldsvik was purchased and became a wholly owned Synsam store during the quarter. One store merged with Synsam Odenplan, which at the same time was converted from the Synsam Outlet concept to a regular store. The franchise stores in Fagersta and Malung were closed.

In Synsam Norway, a new store opened in Porsgrunn during the first quarter.

In Synsam Finland, four new stores opened in Lahti, Vantaa, Salo and Kouvola.

In Other and central functions and in Synsam Denmark, there were no changes in the store portfolio during the first quarter.

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

For information about the number of stores per segment, refer to pages 26 and 30.

Number of stores and omniconcept

The total number of stores at the end of the quarter was 574 (542), of which 547 (511) were directly owned stores.

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

THIRD QUARTER

• On 4 July, Synsam launched a new innovative concept: Sweden's first spectacles center at Westfield Mall of Scandinavia (MOS) in Solna. With over 600 square metres and more than 5,000 unique frames and the market's latest technological equipment for vision correction, Synsam now offers customers an entirely new experience. The store is also the first in Sweden to offer eye examinations until 9:00 p.m.

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

INTERIM REPORT Q3 2024 11 (41)

SECOND QUARTER

Former hockey star Peter Forsberg launched his first eyewear collection together with Synsam under the name Peter Forsberg™. It promises an elegant design that is always in season, primarily targeted at men who wear spectacles.
Synsam's Annual General Meeting was held on 26 April 2024. The Annual General Meeting resolved to reelect Peter Törnquist, Kenneth Bengtsson, Ann Hellenius, Terje List, Håkan Lundstedt, Gustaf Martin-Löf, Christoffer Sjøqvist and Anna Omstedt, and to elect Petra Axdorff as a new Board member. Helena Johnson had declined reelection. Peter Törnquist was also reelected as Chairman of the Board. The Meeting resolved, in accordance with the proposal from the Nomination Committee and the recommendation from the Audit Committee, to reelect Deloitte AB as the company's auditor.

A dividend of SEK 1.80 per share was also approved. The Annual General Meeting also resolved to introduce a new long-term incentive programme (LTIP 2024) for the company's Group management and other selected key individuals, as per the Board's proposal.

For other resolutions and documentation from the 2024 Annual General Meeting, refer to www.synsamgroup.com.
A total of 223,748 shares were allocated for LTIP 2022 on 10 June 2024.

FIRST QUARTER

Swedish consumers consider Synsam to be Sweden's most sustainable brand in the optical retail sector, according to the annual Sustainable Brand Index™.
Voted by customers as having Denmark's best store employees in the Retail Institute's Employee Awards in Denmark.
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.

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

The sales increase for the third quarter was primarily due to Synsam Lifestyle subscriptions. Synsam Sweden has further improved market shares. In Sweden, two new stores were established in the third quarter and 13 new stores were established in the January to September period.

The gross margin decreased slightly in the third quarter of 2024 compared with the year-earlier quarter, partially as a result of enhanced campaigns and sales mix. The EBITDA margin was negatively impacted by the reduced gross margin and by new establishments to date this year. The introduction of technological solutions in the form of Synsam EyeView gave rise to costs that have not yet been offset by lower optician consultant costs.

During the third quarter, the churn rate for Synsam Lifestyle amounted to 2.37 percent (1.81).

Net sales for the quarter increased 5.8 percent. Organic growth was 5.0 percent (10.4) and like-forlike growth was 2.3 percent (8.0). EBITDA amounted to SEK 222 million (223).

Growth	Q3		Jan-Sep
2024	%	MSEK	%	MSEK
Organic growth	5.0	34	8.1	169
Acquisitions	1.0	7	1.0	21
Currency	-	-	-	-
Franchise	-0.2	-1	-0.2	-3
Total growth	5.8	39	8.9	187

		Q3			Jan-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	Δ%	2024	2023	Δ%	23/24	2023
Net sales, Synsam Lifestyle	395	370		1,315	1,151		1,750	1,586
Net sales, Cash	320	306		970	946		1,273	1,250
Net sales, external	715	676	5.8	2,284	2,097	8.9	3,023	2,835
Organic growth, %	5.0	10.4		8.1	12.9		8.0	11.5
Gross profit	543	518	4.9	1,735	1,614	7.5	2,316	2,194
Gross margin, %	75.0	76.3		75.4	76.6		76.1	77.0
EBITDA	222	223	0.0	720	643	12.0	973	895
EBITDA margin, %	30.8	32.8		31.4	30.5		32.0	31.5
Number of stores/of which, directly owned	258 / 235	246 / 219		258 / 235	246 / 219		258 / 235	250 / 224

Net sales and adjusted EBITDA margin 0% 5% 10% 15% 20% 25% 30% 35% 40% 100 200 300 400 500 600 700 900 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Net Sales, MSEK Adjusted EBITDA margin, %

Number of stores per quarter Sweden

Directly owned Franchise

Synsam Denmark

The sales increase for the third quarter was primarily due to Synsam Lifestyle subscriptions. Organic growth was positive in the third quarter compared with the year-earlier quarter. This growth was generated 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 has negatively impacted sales both directly and indirectly since the second half of 2023. Measures have been taken and have yielded results, such as the introduction of Lifestyle Cash in the second half of 2023, which offers customers the benefits of the Lifestyle solution without making partial payments.

The gross margin improved slightly in the quarter, partly as a result of the sales mix.

During the third quarter, the churn rate for Synsam Lifestyle amounted to 3.78 percent (2.90).

Net sales for the quarter increased 2.2 percent. Organic growth amounted to 5.6 percent (-9.6) and like-for-like growth to 5.1 percent (-9.7). DKK currency effects had a negative impact of SEK -10 million on net sales in the quarter. EBITDA for the quarter increased to SEK 74 million (69).

Growth		Q3		Jan-Sep
2024	%	MSEK	%	MSEK
Organic growth	5.6	16	1.5	13
Acquisitions	-	-	-	-
Currency	-3.4	-10	-0.7	-6
Franchise	0.0	0	0.0	0
Total growth	2.2	6	0.8	7

		Q3			Jan-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	Δ%	2024	2023	Δ%	23/24	2023
Net sales, Synsam Lifestyle	139	133		424	435		546	558
Net sales, Cash	152	150		487	469		641	623
Net sales, external	290	284	2.2	911	904	0.8	1,188	1,181
Organic growth, %	5.6	-9.6		1.5	0.5		1.0	0.3
Gross profit	219	214	2.5	688	684	0.6	897	892
Gross margin, %	75.5	75.2		75.4	75.6		75.4	75.5
EBITDA	74	69	6.5	233	230	1.6	284	281
EBITDA margin, %	25.5	24.5		25.6	25.4		23.9	23.7
Number of stores/of which, directly owned	115 / 113	115 / 113		115 / 113	115 / 113		115 / 113	114 / 112

Net sales and adjusted EBITDA margin 0% 5% 10% 15% 20% 25% 30% 35% 40% 50 100 150 200 250 300 350 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Net Sales, MSEK Adjusted EBITDA margin, %

Synsam Norway

The sales increase for the third quarter was the result of Synsam Lifestyle subscriptions. An increase in the number of new stores also contributed to growth, with five new stores established in Norway in the third quarter and seven new stores established in the January to September period.

The gross margin decreased slightly in the third quarter of 2024 compared with the year-earlier quarter, partially as a result of enhanced campaigns and sales mix.

The EBITDA margin was negatively impacted by the reduced gross margin and by new establishments to date this year. The introduction of technological solutions in the form of Synsam EyeView gave rise to costs that have not yet been offset by lower optician consultant costs.

During the third quarter, the churn rate for Synsam Lifestyle amounted to 2.51 percent (2.04).

Net sales for the quarter increased 2.7 percent. Organic growth amounted to 8.8 percent (8.1) and like-for-like growth to 6.3 percent (5.2). NOK currency effects had a negative impact of SEK -19 million on net sales in the quarter. EBITDA amounted to SEK 53 million (61).

Growth		Q3	Jan-Sep
2024	%	MSEK	%	MSEK
Organic growth	8.8	27	8.0	72
Acquisitions	-	-	-	-
Currency	-6.2	-19	-2.9	-26
Franchise	0.1	0	0.0	0
Total growth	2.7	8	5.1	46

		Q3			Jan-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	Δ%	2024	2023	Δ%	23/24	2023
Net sales, Synsam Lifestyle	152	142		454	407		593	546
Net sales, Cash	164	166		490	491		627	629
Net sales, external	316	308	2.7	944	898	5.1	1,221	1,175
Organic growth, %	8.8	8.1		8.0	10.6		7.0	8.9
Gross profit	229	227	1.0	677	651	4.0	887	861
Gross margin, %	71.9	73.6		71.5	72.3		72.5	73.1
EBITDA	53	61	-12.7	193	188	2.5	241	236
EBITDA margin, %	16.6	19.6		20.4	20.9		19.7	20.1
Number of stores/of which, directly owned	127 / 125	119 / 117		127 / 125	119 / 117		127 / 125	120 / 118

Net sales and adjusted EBITDA margin 0% 5% 10% 15% 20% 25% 30% 35% 40% 100 150 200 250 300 350 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2021 2022 2023 2024 Net Sales, MSEK Adjusted EBITDA margin, %

Number of stores per quarter Norway

Synsam Finland

The 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. Two new stores opened in the quarter and nine new stores were established in the January to September period.

The gross margin decreased in the third quarter of 2024 compared with the year-earlier quarter, partially as a result of enhanced campaigns and sales mix in the quarter.

The EBITDA margin was negatively impacted by the reduced gross margin and by new establishments to date this year.

During the third quarter, the churn rate for Synsam Lifestyle amounted to 2.11 percent (1.73).

Net sales for the quarter increased 16.4 percent. Organic growth was 19.6 percent (34.2). Like-for-like growth in the quarter was 8.4 percent (17.6). EUR currency effects had a negative impact of SEK -5 million on net sales in the quarter. EBITDA amounted to SEK 20 million (25).

Growth		Q3	Jan-Sep
2024	%	MSEK	%	MSEK
Organic growth	19.6	30	21.9	96
Acquisitions	-	-	-	-
Currency	-3.2	-5	-0.7	-3
Franchise	-	-	-	-
Total growth	16.4	25	21.3	93

		Q3			Jan-Sep		Oct-Sep	Jan-Dec
MSEK	2024	2023	Δ%	2024	2023	Δ%	23/24	2023
Net sales, Synsam Lifestyle	88	79		255	211		334	290
Net sales, Cash	93	76		274	226		348	299
Net sales, external	180	155	16.4	529	436	21.3	683	590
Organic growth, %	19.6	34.2		21.9	40.3		24.8	39.1
Gross profit	120	108	10.5	358	300	19.3	466	408
Gross margin, %	65.6	69.9		67.5	68.7		68.1	69.1
EBITDA	20	25	-19.5	62	60	2.5	76	75
EBITDA margin, %	11.3	16.4		11.7	13.8		11.1	12.6
Number of stores/of which, directly owned	64 / 64	54 / 54		64 / 64	54 / 54		64 / 64	55 / 55

Number of stores per quarter Finland

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 2023 Annual Report. For a complete report on the risks deemed to impact the Group, refer to the 2023 Annual Report.

RISKS RELATED TO THE CURRENT GEOPOLITICAL SITUATION

Synsam has no direct or indirect exposure to Russia or Ukraine. Aside from the impact this conflict 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.

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 third quarter amounted to SEK 3 million (4). The Parent Company posted a loss after net financial items of SEK -35 million (-31) for the quarter.

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 for the third quarter amounted to SEK 58 million (27).

EBITDA for Other and central functions totalled SEK 11 million (-5) for the quarter. Internal inventory gains for the central warehouse and the production unit are recognised in Other and central functions and had an impact of SEK 0 million (-19) on EBITDA for the quarter.

Financial targets

Dividend policy Synsam Group aims to pay

Employees

The average number of full-time equivalent employees during the quarter was 3,819, of whom 3,125 were women (3,476, of whom 2,829 were women). The corresponding figure for full-year 2023 was 3,413, of whom 2,776 were women.

Events after the end of the period

For the third year in a row, Synsam was awarded the gold medal in the "Optical Retail & Accessories" category at the prestigious Market Awards, which are arranged by Market magazine in collaboration with the Center for Retailing at Stockholm School of Economics.
In November 2024, the three-year bank loans raised in connection with the refinancing in 2021 were repaid, SEK 470 million. At the same time, an essentially equivalent amount of the company's long-term revolving credit facility was utilised.

Stockholm, 19 November 2024 Synsam AB (publ) 556946-3358

Håkan Lundstedt President and CEO

Review Report

To the Board of Directors of Synsam AB (publ.) Corp. Id. 556946-3358

Introduction

We have reviewed the interim report for Synsam AB (publ) for the period January 1 - September 30, 2024. The Board of Directors and the President are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with ISA and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, November 19, 2024

Deloitte AB

Signature on Swedish original

Johan Telander Authorized Public Accountant

Financial statements

Condensed consolidated income statement and statement of other comprehensive income

	Q3			Jan-Sep
MSEK	2024	2023	2024	2023	2023
Net sales	1,559	1,450	4,804	4,427	5,905
Other operating income	24	29	59	61	79
Total revenue	1,583	1,479	4,863	4,487	5,985
Goods for resale	-407	-364	-1,220	-1,102	-1,447
Other external expenses	-174	-164	-525	-509	-682
Personnel costs	-621	-577	-1,909	-1,785	-2,415
EBITDA	381	373	1,208	1,092	1,440
Depreciation of tangible
non-current assets	-161	-151	-470	-442	-591
EBITA	220	222	738	650	850
Amortisation of intangible
non-current assets	-33	-39	-105	-115	-154
EBIT	187	184	633	535	696
Financial income	77	69	240	198	273
Financial expenses	-172	-137	-492	-409	-554
Profit before tax	91	115	381	324	415
Income tax	-26	-25	-91	-74	-105
PROFIT FOR THE PERIOD	66	90	290	249	311

Other comprehensive income
Items that have been or may be
reclassified to profit/loss for the period:
-Translation differences for the period,
foreign subsidiaries	-39	-10	-8	-17	-95
COMPREHENSIVE INCOME FOR THE PERIOD	26	81	282	232	215

Profit for the period attributable to Parent Company
shareholders	66	90	290	249	311
Comprehensive income for the period attributable to Parent
Company shareholders	26	81	282	232	215

Earnings per share before and after dilution, SEK¹	0.44	0.61	1.96	1.67	2.08

¹For information on the change in the number of shares and the average number of shares, refer to the section "Other financial information" on page 29-30.

Condensed consolidated statement of financial position

MSEK 2024 2023 ASSETS Intangible non-current assets 4,482 4,652 Tangible non-current assets 743 681 Right-of-use assets 797 823 Financial non-current assets 36 35 Deferred tax assets 73 70 Total non-current assets 6,131 6,262 Inventories 768 719 Accounts receivable 495 446 Current receivables 182 210 Cash and cash equivalents 567 446 Total current assets 2,012 1,822 TOTAL ASSETS 8,143 8,084 EQUITY AND LIABILITIES Equity¹ 2,507 2,558 Non-current loans from financial institutions 2,046 2,520 Non-current lease liabilities 418 518 Other non-current liabilities, interest-bearing 45 44 Deferred tax liabilities 499 498 Non-current liabilities, non interest-bearing 10 6 Total non-current liabilities 3,018 3,586 Current loans from financial institutions 468 - Current lease liabilities 360 346 Other current liabilities, interest-bearing 0 0 Accounts payable 960 781 Other current liabilities, non-interest-bearing 830 812 Total current liabilities 2,619 1,940 TOTAL EQUITY AND LIABILITIES 8,143 8,084	30 Sep	31 Dec
			2023

			4,541
			680
			779
			32
			72
			6,104
			707
			486
			158
			582
			1,932
			8,036

			2,516
			2,029
			440
			44
			513
			6
			3,032
			464
			322
			0
			892
			811
			2,489
			8,036

Condensed consolidated statement of changes in equity

	30 Sep
MSEK	2024	2023	2023
Equity at beginning of year	2,516	2,584	2,584
Dividends	-266	-253	-253
Share savings program	10	7	11
Repurchase of own shares	-36	-	-30
Recalculation IFRS 16	-	-12	-12
Comprehensive income for the period	282	232	215
EQUITY AT END OF PERIOD¹	2,507	2,558	2,516

¹At the end of the reporting period on 30 September 2024, 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 88 million (173) and retained losses including the results for the period to SEK -1,887 million (-1,922). Equity is entirely attributable to Parent Company shareholders.

Condensed consolidated statement of cash flows

	Q3		Jan-Sep		Jan-Dec
MSEK	2024	2023	2024	2023	2023
Operating activities
Profit before tax	91	115	381	324	415
Adjustments for other non-cash items	30	-7	52	62	60
Depreciation and amortisation	194	190	576	557	744
Income taxes paid	-17	-18	-90	-113	-144
Cash flow from operating activities
before changes in working capital	298	280	918	830	1,076
Cash flow from changes in working capital:
Change in inventories	10	-20	-60	-119	-118
Change in operating receivables	35	2	-32	-59	-53
Change in operating liabilities	-106	-158	64	93	246
Increased (-) / Decreased (+) funds tied up in working capital	-61	-176	-28	-84	74
Cash flow from
operating activities	238	104	890	746	1,150
Investments in intangible non-current assets	-5	-8	-32	-24	-32
Investments in tangible non-current assets	-87	-40	-235	-149	-216
Other investing activities	-3	1	-14	-19	-23
Cash flow from
investing activities	-95	-47	-282	-192	-270
Repurchase of own shares	-	-	-36	-	-30
Amortisation of leasing liabilities	-95	-94	-300	-279	-429
Dividends	-	-	-266	-253	-253
Cash flow from
financing activities	-95	-94	-602	-533	-712
CASH FLOW FOR THE PERIOD	47	-38	7	22	168
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	543	479	582	444	444
Exchange rate differences in cash and cash equivalents	-23	5	-22	-19	-30
CASH AND CASH EQUIVALENTS AT END OF PERIOD	567	446	567	446	582

Condensed Parent Company income statement

		Q3		Jan-Sep
MSEK	2024	2023	2024	2023	2023
Operating income	3	4	12	10	16
Operating expenses	-7	-10	-26	-25	-35
EBIT	-4	-6	-14	-14	-19
Financial items	-31	-25	-146	-140	-147
Loss after financial items	-35	-31	-161	-154	-166
Appropriations	-	-	-	-	21
Loss before tax	-35	-31	-161	-154	-145
Income tax	-	-	-	-	-4
LOSS FOR THE PERIOD	-35	-31	-161	-154	-149

Parent Company comprehensive income statement

		Q3	Jan-Sep	Jan-Dec
MSEK	2024	2023	2024	2023	2023
Loss for the period	-35	-31	-161	-154	-149
COMPREHENSIVE INCOME FOR THE PERIOD	-35	-31	-161	-154	-149

Condensed Parent Company balance sheet

	30 Sep	31 Dec
MSEK	2024	2023	2023
ASSETS
Financial non-current assets	6,927	6,927	6,927
Current receivables	17	18	48
Cash and cash equivalents	0	0	37
TOTAL ASSETS	6,944	6,945	7,012

EQUITY AND LIABILITIES
Restricted equity	1	1	1
Non-restricted equity	3,031	3,503	3,483
Total equity	3,032	3,504	3,484
Untaxed reserves	9	3	9
Non-current liabilities	2,456	2,923	2,429
Other current liabilities	1,436	503	1,074
Accrued expenses and deferred income	11	12	16
TOTAL EQUITY AND LIABILITIES	6,944	6,945	7,012

Notes

Note 1 Accounting policies

Synsam Group applies the International Financial Reporting Standards (IFRS) adopted by the EU. This interim 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 2023 Annual Report have been applied. No new standards, changes or interpretations of existing standards applied from 1 January 2024 are assessed to have had any material impact on the Group's earnings or financial position. This interim report consists of pages 1–41 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.

Note 2 Segment information

QUARTERLY DATA, SEGMENTS AND OTHER AND CENTRAL FUNCTIONS

		2024				2023			2022
MSEK	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
NET SALES
Synsam Sweden	715	820	750	2,835	739	676	751	670	2,534	682	610	681	561
Synsam Denmark	290	329	292	1,181	277	284	322	298	1,093	267	283	286	257
Synsam Norway	316	342	287	1,175	276	308	307	284	1,128	284	292	295	257
Synsam Finland	180	195	154	590	154	155	156	125	393	108	104	100	81
Other and central
functions	58	38	39	124	33	27	30	34	129	33	30	36	30
GROUP	1,559	1,723	1,521	5,905	1,479	1,450	1,566	1,411	5,277	1,373	1,319	1,399	1,186
Of which, Synsam
Lifestyle
Synsam Sweden	395	468	452	1,586	435	370	403	378	1,374	396	321	359	298
Synsam Denmark	139	144	141	558	123	133	150	152	495	126	125	125	118
Synsam Norway	152	159	143	546	139	142	130	135	507	143	131	121	111
Synsam Finland	88	89	78	290	80	79	70	62	187	55	52	43	37
Other and central
functions	36	14	12	28	4	4	8	12	52	6	12	18	16
GROUP	809	875	824	3,008	780	729	760	739	2,614	728	641	666	580
EBITDA
Synsam Sweden	222	241	257	895	252	223	224	196	758	213	191	202	152
Synsam Denmark	74	89	70	281	51	69	81	79	277	58	80	78	61
Synsam Norway	53	92	47	236	48	61	83	45	239	53	55	79	52
Synsam Finland	20	29	13	75	14	25	22	13	35	5	14	8	8
Other and central
functions	11	18	-28	-46	-18	-5	-8	-15	-92	-56	-38	-20	21
Total EBITDA Depreciation and	381	469	358	1,440	348	373	401	318	1,217	273	303	347	293
amortisation of tangible
and intangible non-current assets	-194	-194	-188	-744	-187	-190	-183	-185	-665	-183	-170	-159	-152
EBIT	187	275	171	696	161	184	218	133	552	90	133	188	142
Net financial items	-96	-63	-93	-281	-69	-68	-55	-89	-137	-31	-34	-59	-13
Profit before tax	91	212	77	415	92	115	164	45	415	59	98	129	129

<-- PDF CHUNK SEPARATOR -->

QUARTERLY DATA, SEGMENTS AND OTHER AND CENTRAL FUNCTIONS CONT.

		2024				2023					2022
MSEK	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
EBITDA margin, %
Synsam Sweden	30.8	29.4	34.1	31.5	34.1	32.8	29.7	29.2	29.8	31.2	31.2	29.5	26.9
Synsam Denmark	25.5	27.1	23.9	23.7	18.3	24.5	25.1	26.5	25.3	21.8	28.2	27.1	23.7
Synsam Norway	16.6	27.1	16.5	20.1	17.4	19.6	26.9	15.7	21.1	18.5	18.9	26.7	20.0
Synsam Finland	11.3	14.7	8.3	12.6	9.2	16.4	14.0	10.4	8.9	4.8	13.4	8.3	9.5
GROUP	24.1	26.9	23.3	24.1	23.2	25.2	25.3	22.3	22.8	19.6	22.7	24.5	24.4
Number of stores per quarter, Group
Directly owned stores	547	538	526		517	511	504	504		503	487	487	476
Franchise stores	27	27	27		30	31	32	33		33	33	33	33
Total	574	565	553		547	542	536	537		536	520	520	509

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

Note 3 Financial income and expenses

	Q3		Jan-Sep		Jan-Dec
MSEK	2024	2023	2024	2023	2023
Financial income
Exchange rate gains¹	-	3	-	-	-
Interest income, Synsam Lifestyle Leasing	66	62	211	181	249
Interest income, other external	10	7	29	16	25
Total	77	72	240	198	273
Financial expenses
Exchange rate losses¹	-25	-	-29	-9	-2
Interest expenses, credit institution	-42	-39	-127	-105	-149
Credit expenses, Synsam Lifestyle Leasing	-92	-88	-296	-256	-352
Interest expenses, IFRS 16 Leases	-10	-10	-30	-29	-38
Other financial expenses	-3	-4	-10	-10	-14
Total	-172	-140	-492	-409	-554
Net financial items	-96	-68	-252	-212	-281

¹The group's currency exchange differences regarding accounts receivable and accounts payable are reported in the financial net.

Note 4 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 16 of the 2023 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 third quarter, contingent considerations amounted to SEK - million (-1).

The main methods and assumptions used to determine the fair value of the financial instruments are described in Note 16 of the 2023 Annual Report. The existing financial instruments are of the same character as those described in the 2023 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

		30 Sep
MSEK	2024	2023	2023
CONTINGENT CONSIDERATION
Opening balance	0	3	3
Settled liabilities	0	-3	-3
Reversals	-	0	0
TOTAL	-	1	0

THE GROUP'S FINANCIAL ASSETS AND LIABILITIES BY MEASUREMENT CATEGORY, 30 SEPTEMBER 2024

			Fair value through other
		Fair value through	comprehensive	Total carrying
MSEK	Amortised cost	profit or loss	income	amount
FINANCIAL ASSETS
Financial non-current assets	36			36
Accounts receivable	495			495
Receivables for goods delivered but not invoiced	26			26
Cash and cash equivalents	567			567
TOTAL	1,125	-	-	1,125
FINANCIAL LIABILITIES
Interest-bearing non-current liabilities¹	2,463			2,463
Interest-bearing current liabilities¹	829			829
Non-interest-bearing current liabilities	960	-		960
TOTAL	4,252	-	-	4,252

¹Includes SEK 778 million 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 MEASUREMENT CATEGORY, 30 SEPTEMBER 2023

			Fair value through other
MSEK	Amortised cost	Fair value through profit or loss	comprehensive income	Total carrying amount
FINANCIAL ASSETS
Financial non-current assets	35			35
Accounts receivable	446			446
Receivables for goods delivered but not invoiced	10			10
Cash and cash equivalents	446			446
TOTAL	938	-	-	938
FINANCIAL LIABILITIES
Interest-bearing non-current liabilities¹	3,038			3,038
Non-interest-bearing current liabilities	-			-
Interest-bearing current liabilities¹	346			346
Non-interest-bearing current liabilities	781	1		782
TOTAL	4,166	1	-	4,166

¹Includes SEK 865 million 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 MEASUREMENT CATEGORY, 31 DECEMBER 2023

			other
		Fair value through	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 liabilities ¹	2,469			2,469
Interest-bearing current liabilities ¹	786			786
Non-interest-bearing current liabilities	892	0		893
TOTAL	4,147	0	-	4,147

^<sup>1Includes SEK 762 million 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 5 Related-party transactions

The long-term incentive programme established in 2024 (LTIP 2024) has terms that are essentially the same as previous programmes. The nature and scope of other related-party transactions that took place during the period are also in line with the description in the 2023 Annual Report.

Note 6 Events after the end of the period

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

Fair value through

Note 7 Acquisitions and establishments

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

Note 8 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 the third quarter of 2024, 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 2.8 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 guarter of 2023. In July 2023, Synsam submitted an appeal of the decision to the Tax Agency. The Group has made a provision of SEK 2.2 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 1.2 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 1.8 million.

Other financial information

QUARTERLY DATA

		2024				2023					2022
MSEK	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1	FY	Q4	Q3	Q2	Q1
Total revenue	1,583	1,744	1,536	5,985	1,497	1,479	1,584	1,425	5,349	1,395	1,335	1,415	1,204
EBITDA	381	469	358	1,440	348	373	401	318	1,217	273	303	347	293
EBITA	220	312	205	850	200	222	257	171	698	127	169	224	178
EBIT	187	275	171	696	161	184	218	133	552	90	133	188	142
Net financial items	-96	-63	-93	-281	-69	-68	-55	-89	-137	-31	-34	-59	-13
Profit after financial items	91	212	77	415	92	115	164	45	415	59	98	129	129
Income tax	-26	-44	-21	-105	-30	-25	-24	-25	-87	-8	-18	-31	-30
Profit for the period	66	168	56	311	61	90	140	19	328	51	80	97	99
EBITDA margin, %	24.1	26.9	23.3	24.1	23.2	25.2	25.3	22.3	22.8	19.6	22.7	24.5	24.4
EBITA margin, %	13.9	17.9	13.4	14.2	13.3	15.0	16.2	12.0	13.1	9.1	12.7	15.8	14.7
EBIT margin, %	11.8	15.8	11.1	11.6	10.7	12.4	13.8	9.4	10.3	6.5	9.9	13.3	11.8
Investments, excluding acquisitions ¹	94	106	73	259	76	49	54	79	389	110	51	132	96
Maintenance investments	52	54	37	166	48	24	45	50	194	61	39	49	44
Expansion investments	40	38	31	75	25	20	6	24	128	43	14	33	39
Strategic investments	1	13	4	18	4	5	3	5	66	6	-2	49	12
Earnings per share, SEK ²	0.44	1.14	0.38	2.08	0.41	0.61	0.94	0.13	2.19	0.34	0.53	0.65	0.66

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

	Q	3	Jan-	Sep	Jan-Dec
MSEK	2024	2023	2024	2023	2023
Sales measures
Net sales	1,559	1,450	4,804	4,427	5,905
Net sales growth, %	7.6	9.9	8.5	13.4	11.9
Organic growth, %	9.5	7.0	8.9	11.4	10.3
Earnings measures
EBIT	187	184	633	535	696
EBITA	220	222	738	650	850
EBITDA	381	373	1,208	1,092	1,440
Margin measures
Gross margin, %	73.9	74.9	74.6	75.1	75.5
EBIT margin, %	11.8	12.4	13.0	11.9	11.6
EBITDA margin, %	24.1	25.2	24.9	24.3	24.1
EBITA margin, %	13.9	15.0	15.2	14.5	14.2
Cash flow measures
Cash flow from operating activities	238	104	890	746	1,150
Cash flow from operating activities / EBITDA, %	62.4	27.7	73.7	68.3	79.9
Capital structure
Net debt	2,733	2,953	2,733	2,953	2,720
Net debt/Adjusted EBITDA ²	n/a	n/a	1.76	2.16	1.89
Equity/assets ratio, %	30.8	31.6	30.8	31.6	31.3
Return
Return on equity, % ²	n/a	n/a	13.9	11.8	12.2
The share
Number of shares at end of period ¹	147,823,748	149,055,000	147,823,748	149,055,000	148,368,677
Average number of shares during the period ¹	147,823,748	149,055,000	147,735,921	149,055,000	149,027,561
Earnings per share before and after dilution, SEK ¹	0.44	0.61	1.96	1.67	2.08

^<sup>1The total number of shares at the end of the period amounts to 150,000,000, of which 2,176,252 are repurchased shares in own costody, of which 1,455,000 are repurchased shares for the purpose of ensuring the delivery of shares under LTIP 2023. A total of 223,748 shares were allocated for LTIP 2022 during the second

NUMBER OF STORES

	Swed 30 S		Denn 30 S		Norv 30 S	•	Finla 30 S		Oth 30 S		Gro	•
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023

Directly owned	235	219	113	113	125	117	64	54	10	8	547	511
Franchise	23	27	2	2	2	2	-	-	-	-	27	31
Total	258	246	115	115	127	119	64	54	10	8	574	542

AVERAGE NUMBER OF EMPLOYEES

	Q	3	Q	3
		of whom,		of whom,
	2024	women	2023	women
Synsam Sweden	1,848	1,570	1,682	1,442
Synsam Denmark	564	455	572	461
Synsam Norway	775	627	674	533
Synsam Finland	358	310	296	253
Other and central functions	274	162	252	141
Total	3,819	3,125	3,476	2,829

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

^<sup>2The performance measures net debt/Adjusted EBITDA and Return on equity is calculated based on a rolling 12-month basis for January-September. Since no items affecting comparability were reported for 2024 or the preceding year, adjusted EBITDA corresponds with EBITDA.

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.