Reported second quarter April - June 2023 (compared to April - June 2022)

• Net sales were KSEK 173,115 (9,339)
• Adjusted EBITDA was KSEK 7,611 (-10,321)
• EBITA was KSEK 1,345 (-11,844)
• Net financial debt / Adjusted EBITDA was 12.18 (0.5) [2]
• Cash flow from operating activities was KSEK 79,109 (-7,739)
• ROCE was 1.6% (-13.4%)

Pro forma LTM June 2023 [3]

• Total income was KSEK 804,323
• Gross profit 3 was KSEK 168,675
• Gross margin 3 was 21.3%
• Adjusted EBITDA was 113,559
• Adjusted EBITDA margin was 14.1%
• Organic income growth was 42.1%
• Organic profit growth was 10.3%
• Net debt leverage - Bond was 5.3

“With record total income of MSEK 804 pro forma LTM [3], momentum continues strongly and for the first time, Go North delivered more than MSEK 100 in Adjusted EBITDA pro forma LTM [3]. We are keeping a sharp focus on continuing to strengthen the core business and getting the right foundations in place for continued sustainable profit growth. We will continue improving the operational platform to improve cash flow and reduce net working capital.”
Johan Hallenby, CEO/ Founder Go North Group AB

The growing profit and total income are a mix of continued growth of existing brands, two successful acquisitions, and a strategic shift during Q2. Pro forma LTM gross margin from the brands’ performance continued to be above 20%. Go North concentrated on optimizing operational efficiency and profitability, marking a transition from brand-centric to product-performance-focused strategies which is making a direct positive impact on the group's organic continued growth and on networking capital.

Key Points of Interest

• Record quarterly net sales showcase the company's robust performance.
• The Amazon marketplace and core business model demonstrate resilience despite intensifying product-level competition.
• Two successful acquisitions in the children's products, and home and kitchen segments contribute to the company's growth strategy.
• John Hefter, the previous co-founder of Thrasio, joins the team full-time as senior strategic advisor.
• Go North shifts focus from growth from acquisitions to fostering organic profitability growth.
• As part of the commitment to raise further equity (in accordance with the bond terms), the company raised MSEK 37 from existing shareholders and employees in June.
• The residual equity raise, which the company is currently in progress with, will provide ample headroom to the covenants of the senior secured bonds issued in Q1 2023.

The strategic shift from a brand-centric approach to an intricate analysis of individual product performance means that Go North now focuses on:

• Optimized Working Capital: By streamlining data collection, aligning forecasting, and integrating demand planning with business control, Go North aims to improve inventory turnover. This prevents over-ordering of slow-moving products and reduces the risk of stockouts for high-demand products.
• Supply Chain Consolidation: Go North will expedite supply chain consolidation by collaborating with larger suppliers, leading to simpler logistics and better payment terms. This consolidation drives down production costs, enhances freight terms, reduces COGS, and positively impacts cash flow from operations.
• Efficiency through Portfolio Streamlining: A focused product portfolio allows Go North to operate more efficiently with lower overhead costs.
• Strategic Sunsetting and Divestment: Products with diminishing potential will be phased out or divested, reducing operational complexity and compliance risks.
• Product Life-Cycle Analysis: Go North's decision-making process is based on intricate and data-based analysis of product life cycles. This approach enables accurate assessment of each product's potential and guides the company's strategic choices.

As Go North moves forward, the company remains dedicated to optimizing cash flow, reinforcing its core business, and laying the groundwork for sustainable profit growth at the group level. Fueled by an optimized operational framework and advanced data integration, Go North will persist in its efforts to increase operational cash flow and maximize value for shareholders.

The full report is published on Go North's website at https://gonorth.co/investor-relations/

[1] Pro forma LTM 30 June 2023 vs. LTM 30 June 2022, in SEK. For definition see page 15 in Q2 2023 Interim Report.
[2] For bond net debt covenant see pro forma income statement.
[3] Pro forma LTM 30 June 2023. For definition see page 15 in Q2 2023 Interim Report.