2020-08-27: STRAX: INTERIM REPORT NO 2 FOR THE FINANCIAL YEAR 2020

Q2

2020

STRAX AB

INTERIM REPORT JANUARY - JUNE 2020

1

STRAX DELIVERS STRONG QUARTER THROUGH E-COMMERCE GROWTH AND LAUNCH OF NEW HEALTH & WELLNESS PRODUCT CATEGORY

• The Group's sales for the period January 1 - June 30, 2020, amounted to MEUR 50.2 (44.6), with a gross margin of 23.7 (24.6) percent.
• The Group's result for the period January 1 - June 30, 2020, amounted to MEUR -2.8(-3.2) corresponding to EUR -0.02(-0.02) per share. The result for the period was negatively affected by MEUR 2.8 (1.8) related to the decline in value of the Zagg shares.
• EBITDA for the period January 1 - June 30, 2020, amounted to MEUR 1.4 (2.1).
• Equity as of June 30, 2020 amounted to MEUR 17.3 (18.3) corresponding to EUR 0.15 (0.17) per share.
• STRAX entered the health & wellness product category and started delivering facemasks,
  gloves and disinfectants to existing as well as new customers, including branches within the United Nations and hospitals in Q2 2020.
• STRAX launched a new brand, Planet Buddies, offering a range of children's headphones, speakers and holders based on a variety of colorful characters of endangered and threatened species.
• Urbanista, a STRAX brand, launched a limited-edition Bluetooth speaker in collaboration with H&M Home.
• STRAX renewed its contract with mobilcom-debitel for another four years, where STRAX will supply approximately 550 stores and the online shop www.mobilcom-debitel.de with a broad range of products from its extensive portfolio of brands, including mobilcom-debitel's own freenet brand´.
• STRAX signed a five-year global exclusive distribution agreement with Aetheris to accelerate sales of their established and intelligent face mask brand, Airpop. The Airpop product range will be brought to market by STRAX in Q3 2020.

Significant events after the end of the period

• STRAX signed a senior secured loan facility in the amount of MEUR 30 with Proventus Capital Partners.

"STRAX performed very well in the second quarter, a period of unprecedented market conditions, during which a large portion of our traditional retail customers closed their physical stores and almost everything online-related progressed exponentially. We rolled out an entirely new product category of health & wellness products and stepped up our investment in e-commerce, where we achieved 200% growth year to date.

The entire STRAX organization deserves massive praise for demonstrating resilience and agility since the outbreak of the Covid-19 pandemic."

Gudmundur Palmason, CEO

This information is information that STRAX AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:55 CET on August 27, 2020.

STRAX AB

INTERIM REPORT JANUARY - JUNE 2020

2

WE INNOVATE,

WE CREATE, WE INSPIRE, WE DELIVER

STRAX is a global company specializing in mobile accessories. STRAX develops and grows brands through an omnichannel approach. STRAX operates two complimentary businesses - Own brands and Distribution (retail and online marketplaces) - where the lifestyle audio brand Urbanista is the flagship along with our licensed brand adidas. Through its retail distribution platform in Europe STRAX represents over 40 major mobile accessory brands, whilst Brandvault, focuses on online marketplace distribution globally. STRAX sells into all key channels ranging from telecom operators, mass merchants and consumer electronics to lifestyle retailers and direct to consumers online. STRAX was founded in Miami and Hong Kong in 1995 and has since grown across the world. Today, STRAX has over 200 employees in 12 countries with its operational HQ and logistics center based in Germany. STRAX is listed on the Nasdaq Stockholm Stock Exchange.

OWN BRANDS - MOBILE ACCESSORIES

INNOVATIVE PROTECTION, AUDIO, POWER & CHARGING SOLUTIONS.

With an extensive product portfolio ranging from protection to audio and power, XQISIT brings mid-priced innovative, quality design and functionality to value-conscious consumers.

HIP AUDIO ACCESSORIES WITH SCANDINAVIAN DESIGN.

Based in Stockholm, Urbanista is a market leader in its region, combining avant-garde design with the latest in audio technology. The products are designed for a life in motion and built to inspire and endure.

PREMIUM STRENGTH GLASS SCREEN PROTECTION DESIGNED FOR A SEAMLESS FIT.

Responding to the growing market demand for tempered glass protection, THOR is a higher quality, premium product, priding itself on being meticulously designed to fit any phone perfectly.

STRAX AB

INTERIM REPORT JANUARY - JUNE 2020

3

A UNIVERSAL PHONE GRIP AND STAND

A patented universal and multi- functional phone grip that helps prevent users dropping their phone, enables better quality selfies and a more enhanced mobile video watching experience. A thin and stylish design, Clckr is easy to apply using 3M- adhesive which will not leave residue.

PREMIUM LIFESTYLE BRAND

Richmond & Finch is a Scandinavian tech accessories brand. Richmond & Finch designs and produces contemporary mobile phone and travel accessories. The unisex lifestyle brand creates unique designs which reflect current fashion trends.

CHILDRENS BRAND

Planet Buddies have created a range of kids' accessories based on a variety of colorful characters who represent endangered, vulnerable, and threatened species of animals from all over the world. Their goal is to educate children about the issues that threaten animals with extinction at the same time as offering great and fun products such as headphones and speakers.

LICENSED BRANDS

FOR ACTIVE USE IN THE GYM AND OUTDOORS

adidas Sports aims to set a new bar in the fast-growing market of tech accessories. The new collection of sports cases consists of a variety of flexible armbands, smart waist straps and highly protective anti-slip and anti-shock cases. The adidas Sports cases are carefully designed to protect smartphones during intense workouts or outdoor activities.

STREET WEAR INSPIRED

PROTECTION

adidas Originals continues to evolve the brand's legacy through its commitment to product innovation. Inspired by the creativity and courage found in sporting arenas, the adidas Originals smartphone cases combine contemporary youth culture design with resilient protection features.

CHIC AND REFINED

PROTECTION

The bugatti brand aims to reflect the cultural and creative diversity of Europe. bugatti's handmade smartphone cases are crafted from high-quality full grain leather and come in a range of timeless colors, epitomizing elegance, and quality workmanship.