Pierce Group updates financial targets

The board of directors of Pierce Group AB (publ) has decided to revise the mid to long term financial targets regarding the net revenue growth and the adjusted EBIT margin to reflect the prevailing conditions in the market where Pierce operates. The capital structure target and the dividend policy remain unchanged. The previous targets were adopted in connection with Pierce's IPO in March 2021.

The updated targets are as follows (the previous target, if applicable, is stated within brackets):

Net revenue growth: In the medium to long term (3-5 years), organically outgrow the European online market for motorcycle gear, accessories and parts.

(Previously the target read: In the medium to long term (3-5 years), grow net revenue by 15-20% annually.)

Adjusted operating margin (EBIT): In the medium to long term (3-5 years), achieve an adjusted operating margin (EBIT) of 5-8%.

(Previously the target read: In the medium to long term (3-5 years), reach an Adjusted operating margin (EBIT) of around 8%.)

Capital structure: Net debt/ EBITDA* not exceeding 2.0x, subject to temporary flexibility for strategic initiatives.

Dividend policy: Over the next few years, the Company plans to use free cash flows** for continued development*** and does not intend to pay dividends to shareholders.

* Net debt in relation to last twelve month adjusted EBITDA, excluding IFRS 16 effects.

** Free cash flow refers to cash flow from ongoing operations and investment activities.

*** Development of the company refers to e.g., investments in IT-hardware, IT-development, expansion of distribution warehouse, marketing, customer acquisition, and business and asset acquisitions.