IMPROVED PROFITABILITY AMIDST LOWER VOLUMES

15 Aug 2024 09:00 CEST

Highlights

• Operating revenue of NOK 975 million, down 3% year-over-year on lower sales
volumes for Stressless® and IMG segments while Svane® improved on successful
portfolio optimizations
• Improved profitability with operating earnings (EBIT) of NOK 53 million (-31),
driven by price increases, cost reductions and positive impact from currency
forward contracts
• Operating cash flow of NOK 79 million (171) reflecting good operational
performance, strengthening financial position with cash of NOK 882 million as at
30 June 2024 (651)
• Order intake of NOK 865 million, down 8% from prior-year period reflecting
weaker consumer sentiment, leaving order reserve at NOK 451 million as at 30
June 2024
• Restructuring of management team effective from 1 September, supporting
increased flexibility, strengthened strategic focus and quicker decision-making

The furniture industry continues at a slower post-pandemic pace, with a recovery
in demand taking longer than expected. This also impacted Ekornes in the second
quarter, with lower sales volumes and a decline in the order reserve.
Development was weaker within the premium segment, resulting in lower sales of
Stressless® recliners in particular. Variations between markets persist, with
Central Europe continuing to perform relatively weaker, while sales in North
America and the Nordic region held up better.

Adapting to the lower volumes, Ekornes continued to adjust production capacity
at its facilities during the quarter while maintaining strict cost control.
Combined with effects from price increases materializing, profitability has
gradually improved during the first six months of the year.

“Throughout its 90-year history, Ekornes has demonstrated a convincing track
record of innovation and industrial growth. Having matured into a global
provider of high-quality furniture with more than 4,000 sales points in 40
countries, we are now focused on leveraging our strong position to increase the
company’s consumer and dealer appeal further. While increasing focus on brand
positioning, we are also intensifying strategic efforts to simplify operations,
maximize supply chain efficiency and modernize organizational structures and
competence to fortify the business structure for long-term sustainable growth”,
says Tine Hammernes Leopold, CEO of Ekornes.

As part of the organizational development, a restructuring of Ekornes’ executive
management team is ongoing. The company will continue to optimize operations,
reallocating resources and capital to development and modernization of its
unique brands and products.

Ekornes has a solid financial position. As sales have declined from the elevated
levels during the Covid-19 pandemic, the Group has adapted financially to lower
activity levels. This includes a debt refinancing and working capital
reductions, supporting a strong cash increase with the Group’s cash holdings at
NOK 882 million at the end of the quarter.

The complete “Financial statements for the second quarter 2024” for Ekornes QM
Holding Group is attached and is also available at
www.ekornes.com/en/investorrelations

The company will host a conference call for investors, analysts and other
stakeholders on 16 August at 8:00 a.m. CET.

To join the event, use one of the following access numbers:
NO: +47 2195 6342
DK: +45 7876 8490
UK: +44 203 769 6819
US: +1 646 787 0157
SE: +46 406 82 0620
CH: +86 10 8783 3196
Hong Kong: +852 3 018 4836

Participant code: 676485

For more information, please contact:
Fredrik Ødegård Nilsen, EVP and CFO Ekornes
fon@ekornes.com
Tel: +47 48 09 00 96

About Ekornes QM Holding Group
Ekornes QM Holding AS was founded 4 January 2018 with the purpose of acquiring
the Ekornes Group. In May 2018, an offer was made to purchase the shares of all
Ekornes shareholders. The share purchase was completed in August 2018 and the
Group was delisted from the Oslo Stock Exchange in October 2018. Norwegian
ultimate parent company Ekornes QM Holding AS is a subsidiary of Qumei Home
Furnishings Group. Qumei Group owns 94,12% of the shares in Qumei Runto S.à r.l
and Hillhouse investment owns 5,88% of the shares in Qumei Runto S.à.r.l.

Qumei Runto S.à.r.l. owns 100% of the shares in Ekornes QM Holding AS. The
Ekornes Group is the only operational part of the Ekornes QM Holding Group.
Ekornes is the largest furniture producer in Norway and owns the brand names
Ekornes®, Stressless®, Svane® and IMG. Stressless® is one of the world’s most
well-known furniture brands. Production takes place at the Group’s eight
factories, five of which are in Norway, one in the USA, one in Thailand and one
in Lithuania. Ekornes sells its products over large parts of the world, either
through its own sales companies or via importers.

More information:
Access the news on Oslo Bors NewsWeb site

625241_Ekornes QM Holding Group - Financial statements for the second quarter 2024.pdf