Press release

FNG Nordic AB (publ) Interim report January - March 2022

The interim report for FNG Nordic AB (Ellos Group) is published today.

THE FIRST QUARTER 2022
* Net sales increased by 3.5 % to SEK 859.3 (830.3) million. Currency effects had a positive effect on
growth of 2.0 %.
* The gross margin increased to 51.4 (50.8) %.
* Adjusted EBITA amounted to SEK 15.0 (31.4) million. The adjusted EBITA margin stood at 1.7 (3.8) %.
* The operating profit/loss amounted to SEK -23.2 (7.5) million. The operating margin was -2.7 (0.9) %.
* Cash flow from operating activities amounted to SEK -103.8 (-86.5) million.
* Cash and cash equivalents amounted to SEK 158.1 (205.6) million.

Comment from the CEO of FNG Nordic AB (publ)

ELLOS GROUP MAINTAINS LAST YEAR'S SALE LEVEL DESPITE AN UNCERTAIN WORLD

Ellos Group continued to grow during the year’s first quarter. Sales reached SEK 859 million, which corresponds to a growth of 3.5 per cent. This means that we have established a new, historically high sales level for the first quarter, where sales are approximately 35 per cent higher than the first quarter of 2020. Development is positive, despite some market shift towards brick-and-mortar shopping as Covid-19 restrictions have eased.

We strongly condemn Russia’s war against Ukraine and our sympathy is with the Ukrainian people. We did not
experience any direct effects from the war, but the difficult security policy situation has had some effect on consumer demand during the quarter. We also see that the indirect effects can be significant, and that higher
inflation and the announced interest rate hikes may continue to have some dampening effect on demand.

Despite this, we have seen growth in virtually all of our markets. Home furnishings continued to grow. This is
particularly gratifying in light of the very strong 2021 comparative quarter, although demand for home furnishings
was somewhat weaker than we expected. On the other hand, we are now seeing increased interest in our fashion
offering as restrictions have eased and demand for clothing for social occasions is on the rise. We also note that the returns increased compared to a low volume trend during the Covid-19 pandemic.

We continued to experience high price inflation in digital marketing, as the rest of the industry does. Due to our successful efficiency improvements, our marketing costs in relation to sales decreased as compared with Q1 2021. We anticipate continued price inflation pressure in digital channel marketing.

During the quarter we continued to strengthen our customer offer and made advances in our sustainability journey. Ellos launched a swimwear collection in recycled materials, with all products included in Ellos’s “A Better Choice” programme focused on increasing the use of sustainable materials. Ellos also launched several successful collaborations under the “Made by Women” initiative, including a bedding collection with Marie Olsson Nylander
and a line of dresses with Johanna Toftby, both of which have been major commercial successes.

We have meanwhile increased our inventory as compared with the 2021 comparative period. This makes us less
dependent on the global freight market, which remains challenging, and allows us to maintain a comprehensive,
attractive offer for our customers. The current situation in China, with new Covid-19 outbreaks and lockdowns, is
expected to continue and cause disruptions in production and supply chains. We are closely monitoring this
development.

At the close of the first quarter, we announced that Ellos Group is sharpening its strategy, with greater focus on profitable growth, by increasing focus on our core customers – women in mid-life. We see enormous potential in capitalising on innovation and creativity to create a more attractive, sustainable, and comprehensive fashion and home offer to our core customers, with whom we enjoy a historically long relationship, strong position, and close dialogue. We therefore took the strategic decision to wind up Stayhard this year in August.

As we previously communicated, Nordic Capital will very likely be our owner once again. This is positive for Ellos Group. We have a good relationship with Nordic Capital, and together we are well placed to continue capitalising on growth and online demand.

We remain humble before the challenges in our world and sincerely hope that we will soon see an end to Russia's
war against Ukraine. In the meanwhile, we have donated funds to the UNHCR and products to the refugee reception centre in Borås City. We remain focused on monitoring developments closely and still look positively to the future where we are well positioned in the market.

Hans Ohlsson, CEO

For more information:
Johan Stigson, CFO, Telephone. +46 (0)33 16 08 05

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This information is information that FNG Nordic AB (publ) is legally obliged to disclose in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. Through the agency of the contact persons shown above, the information was released for publication on 23rd of November 2021 at 08.30 CET.

ABOUT ELLOS GROUP
The Ellos Group, which includes Ellos, Jotex, Stayhard, and Homeroom, is the Nordic region’s leading e-commerce group. Working closely with our millions of customers, we are constantly striving to develop and offer attractive and sustainable fashion and household items for the entire family. Our focus is always on the customer. We continuously work to develop our business through innovation, creativity, and sustainability. The Ellos Group, headquartered in Borås, and with operations in all Nordic countries, has around 550 employees and sales of around SEK 3.2 billion. www.ellosgroup.com