TCM Group A/S

Interim Report April-June 2022

August 19, 2022

Business update Q2 2022

  • Organic like-for-like growth (core business) of 11%
  • Strong growth in the Norwegian business
  • Supply situation has normalized
  • Higher input costs, though mitigated, impact earnings temporarily
  • High uncertainty regarding future demand, however solid order book going into Q3
  • Number of branded stores was 94 (91). New Svane Køkkenet store opened in Frederikstad (NO)

2

Revenue growth in Q2 of 11.7%

Revenue

325 mDKK

(291 mDKK)

Cash conversion

11.7%

49.5%

revenue growth

(71.5%)

NWC ratio

Adjusted EBIT

-2.6%

39 DKK

(-7.0%)

(44 mDKK)

Adjusted

EBIT margin

12.0%

(15.2%)

3

Q2 revenue growth driven by the DIY segment and Svane Køkkenet in DK and strong growth in Norway

2022

2021

2022

2021

Apr-Jun

Apr-Jun

Jan-Jun

Jan-Jun

Net revenue (mDKK)

325

291

606

572

- Organic growth

11.7%

6.0%

Q2 comments:

  • Reported revenue growth in Denmark was 10.5% - organic like-for-like growth excluding third party revenue (core business) in Denmark was 9%.
  • Growth in Denmark driven by our DIY segment (Nettoline and e-commerce) and Svane Køkkenet.
  • Revenue outside Denmark increased by 23.5%, driven by growth in sales to the Norwegian market, both organic growth and growth from new stores.

10.5% growth in DK revenue

23.5% growth

in revenue outside DK

4

P&L highlights

2022

2021

2022

2021

Apr-Jun

Apr-Jun

Jan-Jun

Jan-Jun

Net revenue (mDKK)

325

291

606

572

- Gross Margin

21.3%

25.7%

21.3%

24.6%

Adjusted EBIT (mDKK)

39

44

65

77

- Adjusted EBIT margin

12.0%

15.2%

10.7%

13.5%

Q2 comments:

  • The merge of the e-commerce activities in kitchn.dk and Celebert had a technical negative impact on gross margin of in total 0.6%-point in the quarter.
  • In addition gross margin was negatively affected by further increased costs on raw material and energy following the Russian invasion of Ukraine. Mitigation from further sales price increases comes with some delay.
  • Operating expenses decreased by 0.3mDKK primarily due to the merge of the e- commerce activities in kitchn.dk and Celebert.
  • Non-recurringgain of 3.6mDKK in Q2 2022 compared to non-recurring costs in Q2 LY of 1.5mDKK.

5

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TCM Group A/S published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 07:43:14 UTC.