CEO’S STATEMENT

STRONGER EVERY YEAR - LYKO’S GROWTH JOURNEY CONTINUES
2024 has been another year of strong growth, innovation, and success for Lyko. We continue to gain market share in the Nordics while laying a solid foundation for future expansion in Europe. Our passion for making beauty fun, our customer-centric approach, and our drive for continuous evolution make us the leading player in the industry.

A RECORD-BREAKING YEAR FOR LYKO
This year, we reached a significant milestone exceeding one billion SEK in a single quarter for the first time and achieving total revenue of over three and a half billion SEK. As volumes continue to grow, we have successfully scaled the entire
business, driving increased profitability.

Our organization is now firmly in place, and we see great potential to scale even further in the coming years. I am incredibly proud of our employees and their drive to take initiative, explore new solutions, and challenge both our business
model and infrastructure. It is this very curiosity and courage that fuel our growth!

With an organization spanning everything from product development and manufacturing to app development, logistics, and content production, we continue to push boundaries. We have proven our ability to bring a new dimension to beauty that customers love. Our Own Brands have continued to grow and now represent an increasingly important part of our business. Today, we have 15 own brands in our portfolio and have expanded our popular advent calendars by launching multiple Lyko Loveables each month.

OMNICHANNEL STRATEGY DRIVING SUCCESS
Our strategy of combining digital innovation with inspiring in-store experiences has been a key driver of our success. With more store openings and a continued focus on events and customer engagement, we have strengthened our position in the Nordics. This year, we introduced several exclusive brand launches, including Milk Makeup, e.l.f., and Omar Beauty, to name a few. We also elevated our events to new heights, attracting large crowds eager to participate.
Our brand awareness continues to grow significantly across the Nordics. Norway is quickly catching up with Sweden, where we are the market leader, while Finland has shown the fastest brand awareness growth. In markets where our brand recognition is high, we achieve greater impact with every marketing SEK spent.

INVESTMENTS IN INFRASTRUCTURE AND EFFICIENCY
Throughout the year, we made strategic investments in our logistics and launched our self-developed warehouse software Lyko GLAM before the peak period, which enabled us to pass the needle’s eye before the expansion next year.

The automation expansion in Vansbro triples our warehouse space, and capacity increases by 150% by Black Week 2025. At the same time, we successfully relocated our warehouse hub in Germany, strengthening our competitiveness in Europe.

THE FUTURE GLOWS
With a strong business model, a passionate organization, and a clear strategy, I am convinced that Lyko has the best conditions for continued growth. We look forward to another exciting year where we continue to develop and inspire
customers in beauty.

Rickard Lyko
Founder & Chief Executive Officer

Stockholm, March 2025