Interim Report January - September 2020

THE INTERIM PERIOD JANUARY – SEPTEMBER 2020

• Net sales decreased -16% to SEK 3,816 million (4,547)
• Operating profit amounted to SEK 158 million (296)
• Profit after financial items amounted to SEK 85 million (237)
• Profit after tax amounted to SEK 55 million (178)
• Earnings per share amounted to SEK 0.53 (1,74)
• Cash flow from operating activities amounted to SEK 511 million (240)

In 2020, non-recurring items impacted the profit after financial items by SEK -54 million (62).

• EBITDA excl. non-recurring items amounted to SEK 406 million (425)

JULY – SEPTEMBER 2020

• Net sales decreased -11% to SEK 1,258 million (1,413)
• Operating profit amounted to SEK 83 million (45)
• Profit after financial items amounted to SEK 51 million (29)
• Profit after tax amounted to SEK 33 million (22)
• Earnings per share amounted to SEK 0.30 (0.22)
• Cash flow from operating activities amounted to SEK 128 million (17)

In 2020, non-recurring items impacted the profit after financial items by SEK -12 million (-13).

• EBITDA excl. non-recurring items amounted to SEK 157 million (123)
   

• Net debt amounted to SEK 2,082 million (2,689)
• Net debt excl. lease liability amounted to SEK 1,378 million (1,951)

IMPORTANT EVENTS DURING JANUARY – SEPTEMBER 2020

• The interim period was overshadowed by the Covid-19 pandemic, where focus has been on ensuring the health and safety of our employees and customers. Extensive measures in the form of cost adjustments, redundancy notices, temporary layoffs and redundancies has been made to adapt our operations to the reduced demand caused by the pandemic (see pg. 5).
• ITAB has renegotiated terms of its credit facilities and entered into short-term shareholders’ loans (see pg. 5).
• A new CFO and a new COO has been assigned.
• ITAB and Ombori have developed the next generation of Ombori Grid, a digital platform, that together with our development partners Microsoft and Samsung will support retailers in their ambitions to create seamless multichannel experiences.
• ITAB Group has appointed adviser with respect to its financial options to transform its business and consolidate its market position as the leading retail solution provider.
• ITAB’s Board of Directors has decided to announce the intention to raise new capital in order to strengthen the company’s balance sheet and provide additional financing flexibility, as well as to invest in the One ITAB transformation plan. The funds from a capital raise will be used to both reduce current bank debt and fund the One ITAB transformation plan.

EVENTS AFTER THE REPORTING PERIOD

• ITAB Shop Concept AB’s (publ) Italian subsidiary ITAB La Fortezza s.p.a. has on October 8th, 2020 entered into an agreement with Cefla soc. coop. to acquire 81% of Cefla’s retail solutions business unit.

This information is such information that ITAB Shop Concept AB (publ) is obliged to make public under the EU’s Market Abuse Regulation. The information was submitted for publication at 1 pm October 27, 2020.