Slide 1: Interim Report Q4 2024
Interim Report Q4 2024 February 21st 2025
Slide 2: Today's Presenters
Today's Presenters Göran Dahlin CEO Fredrik Ideström CFO
Slide 3: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 4: This is Pierce
THIS IS PIERCE Online leader in a fragmented market Pan-European company Motorcycle specialist Net revenue split, Q4 2024 LTM Net revenue split, Q4 2024 LTM • Pierce is a leading e-tailer in the European market for Gear, Other Parts and Accessories for motorcycle riding 5% • The total European marke
Slide 5: The market for motorcycle gear, parts and accessories
THE MARKET FOR MOTORCYCLE GEAR, PARTS AND ACCESSORS The market for Gear, Parts and Accessories 1 100bn SEK market where the majority is still offline 1 ~30% • Protective clothing, such as helmets, boots, suits. Total market 2021 GEAR • High wear and tear for frequent riders (especially offroad). SEK
Slide 6: Fragmented landscape
FRAGMENTED LANDSCAPE Competitive landscape Direct Competitors Leading online retailers in Go-to- Europe Player Home market1 Ownership Comment Nordic Champion. Pierce Nordics Online Listed Pan European leader in offroad General / diversified online FC-Moto DE Online Private DE champion online, onroad
Slide 7: Q4 Summary
Q4 SUMMARY Net revenue +19% in local currencies, +18% in SEK Variance • Q4 showed strong growth YoY following ambitious approach vs last year SEKm Q4 2023 Q4 2024 Local • Looking ahead, the global geopolitical situation drives increasing uncertain Reported currencies consumer sentiment across Europe
Slide 8: KPI Highlights LTM
KPI HIGHLIGHTS LTM Resilient private brand revenue Stable Trustpilot score, 4.3/5.0 Net revenues, Private brand LTM (SEKm) Aggregated Trustpilot scores Net Revenue, Private brand (% of net revenue) 646 650 641 640 638 635 639 4,3 4,3 4,3 4,3 4,3 4,3 4,3 4,4 623 631 624 4,3 4,3 39% 41% 42% 41% 41% 39
Slide 9: KPI Highlights LTM (continued)
KPI HIGHLIGHTS LTM (CONTINUED) Active customer base has turned to increasing AOV on similar level as previous quarter Active customers LTM (000), end of period Average order value LTM (SEK) Number of orders LTM (000) +13% 1,163 1,165 1,070 1,090 1,088 1,084 1,106 1,055 1,083 1,070 999 1,021 1,021 1,
Slide 10: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 11: Quarterly Revenue Development
QUARTERLY REVENUE DEVELOPMENT Net Revenue Net Revenue LTM ▪ Q4 and FY 2024 has shown growth following a period of declining sales +18% ▪ Conservative approach in Q4 2023 led to -10% 500 1.0 1 900 +6% 1.0 decline which has now been more than 456 451 1 800 441 1 670 1 628 450 427 0.9 1 700 1 595 1 585
Slide 12: A Historical Perspective on Growth and Margin
A HISTORICAL PERSPECTIVE ON GROWTH AND MARGIN CAGR from 2019 which is considered the last comparison point prior to COVID Q1 Q2 Q3 Q4 C AGR + 6 % C AGR + 6 % C AGR + 6 % C AGR + 5 % 50% 550 48% 50% 550 50% 550 47% 50% 550 50% 46% 46% 46% 46% 46% 47% 45% 45% 441 456 45% 45% 45% 500 500 500 44% 43% 50
Slide 13: Group Financials
GROUP FINANCIALS Revenue growth in local currencies – profit improved YoY Net revenue (SEKm) Net revenue (SEKm) • Net revenue growth during Q4 by segment: Profit after variable costs (SEKm) Profit after variable costs (SEKm) ̵ Offroad 16% and 18% in local currencies Profit after variable costs (%) P
Slide 14: Adjusted EBIT
ADJUSTED EBIT Adjusted EBIT improved vs last year, excluding unusual items Adjusted EBIT (SEKm) Adjusted EBIT margin (%) • Items affecting Comparability in the period mainly 4 related to organizational efficiency initiatives 1 6 0.9% • Adjusted EBIT 0.3% 5 ̵ Adjusted EBIT in Q4 2024 strengthened fro
Slide 15: Gross Margin
GROSS MARGIN Gross margin development since Q4 2022 Shipping costs in relation to revenues Gross margin (%), reported In-freight (SEKm) Gross margin (%), exlcluding the effect from obsolescence & scrapping Cost in relation to Net revenue (%) 30 12 30 44.7% 45.6% 44.1% 45.5% 43.2% 27 42.1% 10 24 25 3
Slide 16: Overhead Costs Development
OVERHEAD COSTS DEVELOPMENT Overhead costs Overhead costs % of net revenue ▪ The restructuring program from Q4 2023 has mitigated underlying effects such as underlying inflationary pressure 25 76 80 ▪ 2024 has been impacted by transformation 71 72 67 69 costs, mainly related to our tech stack upgrade
Slide 17: Net Working Capital Development
NET WORKING CAPITAL DEVELOPMENT NWC at similar level as previous year Net working capital, NWC (SEKm) ▪ Net working capital (NWC) has during the fall Net working capital, % of Net Revenue, LTM (%) 2024 increased from a low point in Q2 as a result of work to improve stock and availability ▪ NWC decre
Slide 18: Financial Position
FINANCIAL POSITION Debt-free, net cash positive and a solid equity position 31 Dec 31 Dec SEKm (unless stated otherwise) 2023 2024 Interest-bearing liabilities¹ - - ▪ Cash positive since new share issue in 2022. Cash and cash equivalents 222 297 Net debt excl. IFRS 16 -222 -297 ▪ Solid equity positi
Slide 19: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 20: Pierce 2.0 - Strategic goals
Pierce 2.0 - Strategic goals Becoming “The undisputed leader in e-commerce for motorcycle equipment and accessories across the European market” Strategic Goal Progress 2024 • Increased the number of MX-riders in our organization to improve our technical assortment where we have lost some To achieve
Slide 21: Agenda
Agenda 1. Pierce in Brief 2. Financial update 3. Looking forward 4. Q&A
Slide 22: Appendix
Appendix 22
Slide 23: Q4 Summary – Profit and Loss
Q4 SUMMARY – PROFIT AND LOSS Q4 2023 Q4 2024 SEKm (unless stated otherwise) Offroad Onroad Other Intra-group Total Offroad Onroad Other Intra-group Total costs¹ costs¹ Net Revenue 258 87 37 - 382 300 114 37 - 451 Growth (y/y) (%) -9% -19% -1% -% -10% 16% 30% -1% -% 18% Gross Profit 120 34 17 0 171 1
Slide 24: Consolidated Financial Information
CONSOLIDATED FINANCIAL INFORMATION SEKm (unless stated otherwise) 2022 2023 2024 Net Revenue 1,670 1,537 1,628 Growth (y/y) (%) 5% -8% 6% Growth in local currencies (y/y) (%) 1% -13% 6% Growth in private brand sales (y/y) (%) 7% -1% 0% Gross Profit 657 607 724 Gross margin (%) 39.3% 39.5% 44.5% Vari
Slide 25: Segment Financial Information
SEGMENT FINANCIAL INFORMATION SEKm (unless stated otherwise) 2022 2023 2024 Offroad Net Revenue 999 952 1,017 Growth (y/y) (%) 3% -5% 7% Gross Profit 412 393 477 Gross margin (%) 41.2% 41.3% 46.9% Variable sales- and distribution costs -235 -205 -220 Variable sales- and distribution costs (%) -23.5%
Slide 26: Quarterly Consolidated Financial Information
QUARTERLY CONSOLIDATED FINANCIAL INFORMATION 2022 2023 2024 SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY22 Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Net Revenue 420 450 373 427 1,670 345 441 369 382 1,537 356 456 365 451 1,628 Growth (y/y) (%) 14% 0% 3% 3% 5% -18% -2% -1% -10% -8% 3% 3% -1% 18% 6% Growth i
Slide 27: Quarterly Segment Financial Information
QUARTERLY SEGMENT FINANCIAL INFORMATION 2022 2023 2024 SEKm (unless stated otherwise) Q1 Q2 Q3 Q4 FY22 Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY24 Offroad Net Revenue 241 243 233 282 999 207 248 238 258 952 217 264 236 300 1,017 Growth (y/y) (%) 9% -9% 3% 8% 3% -14% 2% 3% -9% -5% 5% 6% -1% 16% 7% Gross Profit
Slide 28: Quarterly Consolidated Net Working Capital
QUARTERLY CONSOLIDATED NET WORKING CAPITAL 2022 2023 2024 SEKm (unless stated otherwise) Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Physical stock 414 420 401 317 283 274 233 280 301 Goods in transit 74 44 58 60 61 58 74 121 118 Inventory 488 464 459 377 344 332 307 400 419 Working capital assets 20 30 28 20 14 25
Slide 29: Condensed Consolidated Statement of Profit/Loss
CONDENSED CONSOLIDATED STATEMENT OF PROFIT/LOSS Oct-Dec Jan-Dec SEKm 2024 2023 2024 2023 Net revenue 451 382 1,628 1,537 Cost of goods sold -256 -211 -903 -930 Gross profit 195 171 724 607 Sales and distribution costs -141 -137 -515 -505 Administration costs -60 -76 -196 -212 Other operating income-
Slide 30: Condensed Consolidated Statement of Financial Position
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SEKm 31 Dec 2024 31 Dec 2023 Intangible assets 281 310 Property, plant and equipment 15 15 Right-of-use assets 54 53 Financial assets 6 3 Deferred tax assets 2 8 Total non-current assets 358 389 Inventory 419 344 Other current assets 29 15 Cash
Slide 31: Condensed Consolidated Statement of Cash Flow
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW Oct-Dec Jan-Dec SEKm NOTE 2024 2023 2024 2023 Operating profit A -5 -45 18 -111 Adjustments for non-cash items B 18 36 69 122 Paid interest -1 -1 -4 -5 Received interest 2 1 8 3 Realised currency derivatives 1 4 4 9 Paid/received tax -1 5 -4 3 Cash flow
Slide 32: Reconciliation of Adjusted Financials
RECONCILIATION OF ADJUSTED FINANCIALS Oct-Dec Jan-Dec SEKm 2024 2023 2024 2023 Net revenue 451 382 1,628 1,537 Cost of goods sold -256 -211 -903 -930 Variable sales- and distribution costs -102 -91 -363 -351 Other costs¹ -98 -125 -342 -367 Operating profit (EBIT) -5 -45 18 -111 Reconciliation of adj
Slide 33: Mid to long term financial targets
Pierce Group's mid to long term financial targets Financial targets • Net revenue growth: In the medium to long term (3-5 years), organically outgrow the European online market for motorcycle gear, accessories and parts. • Adjusted operating margin (EBIT): In the medium to long term (3-5 years), ach
Slide 34: Riders in QW E-commerce
RIDERS IN QW E-COMMERCE PIERCE