Panostaja Oyj : Half Year Report Q2 2021

PANOSTAJA Half-year Report Q2 2

PANOSTAJA OYJ HALF-YEAR REPORT

Easing of the pandemic reflected by outlook

February 1, 2021-April 30, 2021 (3 months)

• Net sales increased in two of the six segments. Net sales for the Group as a whole weakened by 7% to MEUR 36.3 (MEUR 39.1).
• EBIT improved in one of the six segments. The entire Group's EBIT declined from the reference period, standing at MEUR -0.5 (MEUR 0.9).
• Grano's net sales for the review period declined by 6% from the reference period in the previous year. EBIT totaled MEUR 0.8 (MEUR 1.2).
• Earnings per share (undiluted) were -4.1 cents (-1.3 cents).
• In the review period, Panostaja made an agreement on selling the share capital of Suomen Helakeskus Oy to HTF Group Oy. Panostaja Group recorded a sales loss of about MEUR 1.0 for the trade.

November 1, 2020-April 30, 2021 (6 months)

• Net sales increased in two of the six segments. Net sales for the Group as a whole weakened by 9% to MEUR 73.0 (MEUR 80.0).
• EBIT improved in two of the six segments. The entire Group's EBIT declined from the reference period, standing at MEUR -1.8 (MEUR 0.3).
• Grano's net sales for the review period declined by 6% from the reference period in the previous year. EBIT totaled MEUR 0.7 (MEUR 0.8).
• Earnings per share (undiluted) were -7.5 cents (-3.2 cents).

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PANOSTAJA Half-year Report Q2 3

CEO Tapio Tommila:

"During the three-month review period, the total net sales of the segments dropped by 7% from the reference period. The impacts of the coronavirus pandemic remained clearly evident in each segment's operating environment and net sales continued to decline, especially for Carrot and CoreHW. Grano's net sales, too, were 6% lower than in the reference period. On the other hand, Hygga continued its strong increase in net sales as a result of the outsourcing services provided in Helsinki. Due to the decline in net sales, EBIT for the review period weakened from the reference period to MEUR -0.5 (MEUR 0.9).

Panostaja affiliate Gugguu's abnormal financial period for 2021 ended during the review period in March. Over the course of the past financial period, Gugguu increased its net sales to MEUR 4.6 and continued its active development efforts aiming for internationalization. Among other things, the company developed international online trade and opened local websites for target countries. During the year, Gugguu also conducted an international market survey and initiated active digital and influencer marketing efforts in the target countries and Finland. The product categories were also further expanded.

The corporate acquisitions market remained active in the period under review, and the availability of new opportunities has been high. During the period under review, we also sold the entire share capital of Suomen Helakeskus Oy to HTF Group Oy. Panostaja has been the owner of Suomen Helakeskus for a long time, and this divestment is in line with our strategy and supports the goal of actively developing our portfolio.

The impacts of the, so far, year-long coronavirus pandemic persisted through the past review period. The easing of the pandemic after the review period has resulted in increased activity and an improved outlook for Grano, for example."

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PANOSTAJA Half-year Report Q2 4

Segments 3 months

Grano

Grano is Finland's leading content and marketing services company

Grano's net sales for the review period were MEUR 26.9, which was 6% below the reference period level (MEUR 28.5). Grano's EBIT for the review period stood at MEUR 0.8, which is a decrease of MEUR 0.4 from the reference period (MEUR 1.2).

Demand in the review period varied substantially between business areas. The impacts of the coronavirus pandemic were still evident in the product lines with the highest net sales, such as sheet printing and large-scale prints. On the other hand, the demand for asset management solutions, packaging business, printing services for construction and translation services remained good.

The decline in net sales during the review period weakened the profit/loss compared to the reference period. The result is improved by the sales profit of MEUR 0.3 from property, plant and equipment.

Toward the end of the review period, there was an increase in activity and demand. The demand has remained at the same level even after the review period.

MEUR	3 months	3 months	6 months	6 months	12 months
	2/21-4/21	2/20-4/2011/20-4/2111/19-4/20	11/19-10/20
Net sales, MEUR	26.9	28.5	54.2	57.8	109.9
EBIT, MEUR	0.8	1.2	0.7	0.8	4.8
Interest-bearing net
54.9	67.2	54.9	67.2	60.6
liabilities
Panostaja's holding	55.2%

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PANOSTAJA Half-year Report Q2 5

Hygga

Hygga provides dental care and health care ERP services with a new operating concept

Hygga's net sales of MEUR 2.1 for the review period were MEUR 1.1 higher than in the reference period (MEUR 1.0). The increase in net sales came from the clinic business, which began providing outsourced services to the City of Helsinki starting from November 1. EBIT stood at MEUR -0.1, which was at the level of the reference period.

As regards Hygga's own private clinic business, demand varied during the review period in accordance with the changing coronavirus situation. Operational development efforts were continued during the review period for outsourced services in Helsinki.

For the licensing business, the acquisition of new customers has slowed down significantly in the Finnish and international markets as a result of the coronavirus outbreak. However, one new oral health care customer relationship was established in the review period. There is interest for Hygga's solutions but customers are currently unable to take the necessary steps.

After the review period, demand has remained at the level of the end of the review period for both the clinic and licensing business.

MEUR	3 months	3 months	6 months	6 months	12 months
	2/21-4/21	2/20-4/20	11/20-4/2111/19-4/20	11/19-10/20
Net sales, MEUR	2.1	1.0	4.0	2.1	4.1
EBIT, MEUR	-0.1	-0.1	-0.4	-0.1	-0.3
Interest-bearing net liabilities	8.8	7.8	8.8	7.8	7.6
Panostaja's holding	79.8%

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