Lindex Oyj : Half-year Financial Report 2025 Presentation

‌Interim Report January-June 2025

Susanne Ehnbåge, CEO Henrik Henriksson, CFO 18 July 2025

1

‌Agenda

• Business update

• Financial update

• Way forward

  2

• Q&A

‌Business update

3

‌Consumer confidence remained low in all Lindex Group's

main markets

Jul 2024 Aug 2024 Sep 2024 Oct 2024 Nov 2024 Dec 2024 Jan 2025 Feb 2025 Mar 2025 Apr 2025 May 2025 Jun 2025

5

0

-5

-10

-15

-20

-25

Sources: Eurostat and Opinion Norway

Sweden Finland Norway

‌Key messages

The Group over-performed the fashion market despite the prevailing volatility Stockmann division: consistent profitability improvement continued

The Group's

full-year guidance maintained

Lindex division's omnichannel distribution centre ramp-up phase progressing well

The restructuring programme nearing its completion Strategic assessment continues,

expected to be finalised in H2 2025

5

‌REVENUE, M€

300.0

250.0

200.0

150.0

100.0

0.9%

251.6 253.9

Q2 2024 Q2 2025

Lindex Group's Q2 impacted by market volatility and cautious consumer sentiment, Stockmann continued to improve

Group's revenue increased

• The Group's revenue increased by 0.2% in local currencies

• The revenue of both divisions was impacted by the fashion market volatility and delayed and cold onset of summer season

• Lindex division's revenue increased by 0.4% in local

  ADJUSTED OPERATING RESULT, M€

  currencies

  30.0

  20.0

  10.0

  29.5

  -7.3 M€

  • Stockmann division's revenue was on par with the

    comparison period

    Group's adjusted operating result decreased

  • Lindex division's adjusted operating result declined mainly

    due to decreased gross margin

  • Stockmann division's adjusted operating result improved

0.0

22.2

Q2 2024 Q2 2025

due to efficient cost control

‌Lindex division, Q2 2025

• Strong digital sales growth in all categories and increased digital share 20.3% (18.2)

• Kidswear best performing category

• Launched Delicate Lingerie

• The ramp-up of new, highly automated omnichannel warehouse continues at full speed

• Continued progress in digital and circular

  transformation, driving Lindex's growth journey

  • Digital store programme in final implementation stage

  • Transparency and traceability developed throughout the supply chain

  • Further steps towards more circular assortment: 75% of our products partly contain recycled fibres (58% 2024)

• Strengthened women's empowerment through focus

on menstrual health and strategic partnership

‌Stockmann division, Q2 2025

• Result improved for the 5th consecutive quarter due to continued successful efficiency measures

• Enhanced competitiveness of omnichannel operations generated results - Stockmann over-performed the market

  • Digital sales growth continued

  • Baltics' revenue increased

  • Exclusive launch of Chanel Beauty in Stockmann's e-com

  • Crazy Day's e-com awarded among top 3 Online Stores

• Helsinki flagship's position reinforced as inspiring retail

  destination driving increased traffic

• Differentiation through curated offering by new brands, collections and strategic partnerships

• Number of active and new loyal customers and their share

  of revenue continued to increase clearly

• Crazy Days campaign on the previous year's level

• Stockmann Itis department store in Helsinki was closed in end June 2025. No material impact on the profitability or financial position of the division or Lindex Group.

‌Guidance 2025 (unchanged)

In 2025, Lindex Group expects its revenue to increase by 0−4% in local currencies compared to 2024. The Group's adjusted operating result is estimated to be

EUR 70−90 million.

Foreign exchange rate fluctuations may have a significant effect on the adjusted operating result.

9

‌Financial update

10

‌LINDEX DIVISION REVENUE, M€ 1.5%

Q2: The Lindex division's revenue

increased in challenging market

200

150

100

50

169.7 172.3

Q2 2024 Q2 2025

• Revenue increased despite the market volatility and challenges posed by a late and cold start of the summer

  • In local currencies, revenue increased by 0.4%

• Gross margin declined to 64.5% (67.5), due to

  LINDEX DIVISION ADJUSTED OPERATING RESULT, M€ -8.0 M€

  increased promotional activities responding both to the price-driven competition landscape and higher inventory levels

  • Comparable operating costs increased slightly to

40.0

30.0

20.0

10.0

0.0

30.8

22.8

Q2 2024 Q2 2025

EUR 69.6 (68.8) million, mainly impacted by goods handling costs.

• Adjusted operating result decreased to EUR 22.8 (30.8) million mainly due to a decrease in gross margin.

  ‌STOCKMANN DIVISION REVENUE, M€ -0.2%

  Q2: Stockmann improved profitability, revenue on par

  100.0

  50.0

  0.0

  81.9 81.7

  Q2 2024 Q2 2025

• Revenue was on par with the PY, affected by a late and cold start of the summer season, especially in the division's biggest category, fashion

• However, Stockmann's fashion category

  over-performed the overall fashion market that

  experienced a clear decline in the division's

  STOCKMANN DIVISION ADJUSTED OPERATING RESULT, M€

  home markets

  • Gross margin stood at 44.2% (44.4), impacted by increased promotional activities responding to the

2.0

1.0

0.0

-1.0

-2.0

-0.6

0.8 M€

0.2

cost-conscious consumer sentiment and price-driven competition landscape

• Adjusted operating result improved due to successfully implemented efficiency measures

Q2 2024 Q2 2025

‌Q2: Changes in Group revenue and adjusted operating result

CHANGES IN REVENUE, M€ CHANGES IN ADJUSTED OPERATING RESULT, M€

251.6 2.6	253.9
-0.1 Fashion Fashion market market volatility declined, but combined division with cold performed start of the better than summer market posed challenges

280

260

240

220

200

180

160

140

120

100

Q2 2024 Lindex Stockmann Q2 2025

35

29.5 -8.0 Decreased gross margin	0.8	22.2
	Successful efficiency measures continued

30

25

20

15

10

05

00

Q2 2024 Lindex Stockmann Q2 2025

‌Q2: Group key figures

REVENUE, M€ ADJUSTED OPERATING RESULT, M€

300.0

250.0

200.0

150.0

100.0

0.9%

251.6 253.9

30.0

20.0

10.0

0.0

22.2

29.5

-7.3 M€

Q2 2024 Q2 2025 Q2 2024 Q2 2025

25.5 M€

(20.3)

Operating result

13.1 M€

(7.0)

Net result

58.0%

(60.0)

Gross margin

0.08 €

(0.04)

EPS, basic

‌The divisions' profitability levels

ADJUSTED OPERATING RESULT ROLLING TWELVE MONTHS, M€

EUR mill.

120

100

80

60

40

36.2

33.5

42.9 39.6

47.1

62.1

70.8

80.3

93.3

100.0

91.3 90.0 90.0 87.3 91.0 90.3 88.9

83.5 78.4 82.9 78.4

70.4

20

0

-20

-40

-60

-1.8

-16.8 -17.8

-48.2 -49.7

-12.0

-38.7 -33.7

-9.9 -5.1 -2.5 -2.3 -5.4 -5.1 -7.0 -6.3 -8.7 -5.8 -5.5 -3.9 -1.8 -1.0

Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025

Lindex Stockmann

‌1-6 2025: Operating free cash flow and capital expenditure

OPERATING FREE CASH FLOW, M€* CAPITAL EXPENDITURE (EXCL. IFRS 16 ITEMS), M€

0.0

-5.0

-10.0

-15.0

-20.0

-25.0

-15.8 -17.3

1-6 2024 1-6 2025

20.0

15.0

10.0

5.0

0.0

16.9 15.9

1-6 2024 1-6 2025

• Inventories were EUR 183.0 (173.8) million

  * The operating free cash flow is excluding Lindex omnichannel distribution centre and IAC.

• CAPEX, excluding the Lindex omnichannel distribution centre EUR 12.7 (14.4) million

  By the end of June, EUR 99.5 million of the total omnichannel distribution centre investment of EUR 110 million has been paid

• Omnichannel distribution centre EUR 3.2 (2.5) million

‌Changes in cash position

CHANGES IN CASH POSITION PER ITEM, M€

85.0 M€

(103.1)

2025

1-6

200

150

100

50

00

114.7

64.8

-10.7

-58.5

-16.0 -12.0

0.5

-2.8

cash

5.1 85.0

Adjusted Lease Paid/refund Other adj. Ending

EBITDA payments of taxes cash 30.6.2025

Opening Change CAPEX Proceeds from Currency

cash 1.1.2025 in NWC loans diffs.

Opening

cash 1.1.2025

Adjusted

EBITDA

Change

in NWC

Lease

payments

CAPEX Paid/refund

of taxes

Proceeds

from loans

Other

adjustments

Currency

differences

Ending cash

30.6.2025

2024

1-6

200

73.1

-19.5

137.5

-55.2

-16.7

-9.5

103.1

-3.5

-3.1

150

100

50

00

Opening

cash 1.1.2024

Adjusted

EBITDA

Change

in NWC

Lease

payments

CAPEX Paid/refund

of taxes

Other adj. Currency

diffs.

Ending

cash 30.6.2024

‌Lindex Group's financial position

NET DEBT EXCL. IFRS 16 ITEMS, M€

Conversion of unsecured debt to senior secured bonds

Divestment of the property in Tallinn

73

100

61

66

11

30

-7

1

-313

-274

-234

-325

-278

Divestment of the property in Helsinki

-32

32

36

36

119

EUR mill.

200

100

0

-100

-200

-300

-400

Divestment of the property in Riga

-500

Q1/202 1 Q2/2021 Q3/202 1 Q4/202 1 Q1/202 2 Q2/202 2 Q3/202 2 Q4/202 2 Q1/2023 Q2/202 3 Q3/202 3 Q4/202 3 Q1/202 4 Q2/202 4 Q3/202 4 Q4/202 4 Q1/202 5 Q2/202 5

62.2%

(60.5)

Equity ratio

(excl. IFRS 16)

30.3%

(28.6)

Equity ratio

598.3 M€

(614.1)

Lease liabilities

83.8 M€

(73.1)

Interest-bearing liabilities (excl. IFRS 16)

‌Financial highlights

Revenue increased despite the challenging market environment

Lindex division's revenue improved towards the end of the quarter, and grew compared to PY

Adjusted operating result improved

due to successful cost efficiency measures

19

‌Way forward

20

‌Lindex: Clear strategy for value creation

Accelerate growth Transform to a sustainable business

Decouple cost from growth

‌Lindex division

- 2025, Geared for growth

• Progressing towards full operation of

  the new omnichannel warehouse ensuring

  implementation of long-term growth plans

• Continue driving growth in current markets and expanding Lindex business into new markets, growing with new partnerships

• Finalising Digital Store Programme

• Continue digitalising the supply chain

• Driving sustainability transformation

‌Stockmann: Customer-centric strategy to ensure profitability and future growth

Elevate offering: Increase focus on premium and luxury

Grow and leverage

loyal customer base

Optimise omnichannel performance

Improve operational efficiency

‌Stockmann division

- 2025, Systematic strategy execution with focus on profitability

• Secure systematic progress of operational and cost efficiency measures to improve profitability

• Focus on offering differentiation with new brands and profitability through inventory and supplier management

• Accelerate automation and personalization to further activate loyal customers

• Enhance eCom role to fuel omnichannel growth - improve customer experience across all channels

• Launch important partnerships aimed to increase excitement and profitability - Vepsäläinen in multiple locations and Crème de la Crème

in Tallinn

‌Q&A

Further information

lindex-group.com [e-mail]

25