Saga Furs Oyj : Financial Statements Bulletin 1.11.2021–31.10.2022 (Summary)

Saga Furs Oyj financial statements bulletin 1.11.2021-31.10.2022 (translation)

This is a translated summary of the financial statements bulletin published in Finnish and Swedish by Saga Furs Oyj (ltd) on 26 January 2023 at 13.15 EET. The full report is available at www.sagafurs.com in Finnish and in Swedish.

Pre-tax profit remained positive despite a sharp decline in brokerage sales at the beginning of the financial period

• Due to the decrease in the amount of brokered pelts and the price level of the pelts, the value of Saga Furs' brokerage sales decreased by 30 per cent compared to the previous financial year to EUR 273 million (2020/2021: EUR 392 million)
• The group's turnover decreased by 24 per cent to EUR 39 million (EUR 51 million)
• Operating costs were at the level of the comparison period at EUR 43 million (EUR 43 million)
• The group's operating result decreased to a loss of EUR 0,3 million (EUR 11 million)
• The group's net financial income decreased to EUR 1.4 million (EUR 5.6 million)
• The group's pre-tax profit was EUR 1,2 million (EUR 17 million)
• Earnings per share were EUR 0,29 (EUR 3,63)
• The Board of Directors proposes to the Annual General Meeting that a total dividend of EUR 0,14 per A share and EUR 0,14 per C share shall be paid

Half-year period from 1 May to 31 October 2022

• During the six-month period from 1 May to 31 October 2022, the value of the company's brokerage sales increased to EUR 229 million, but remained below the comparison period (EUR 248 million)
• The group's turnover fell by 1 % to EUR 30 million (EUR 30 million)
• Operating costs increased to EUR 28 million (EUR 25 million)
• The group's operating result decreased to EUR 2.1 million (EUR 7.2 million)
• The group's pre-tax profit decreased to EUR 2.8 million (EUR 9.0 million)

Key figures

5/22-10/22	11/21-10/22	5/21-10/21	11/20-10/21
6 mo	12 mo	6 mo	12 mo

Brokerage sales, MEUR	228.9	272.7	247.8	391.9
Brokered pelts, million pcs	8.1	9.3	6.2	10.0
Turnover, MEUR	29.5	38.8	29.9	51.0
Operating result, MEUR	2.1	-0.3	7.2	11.0
Pre-tax profit, MEUR	2.8	1.2	9.0	16.6
Earnings per share, EUR	1.15	0.29	1.90	3.63
Return on equity, (ROE) %	4.9 %	1.2 %	7.7 %	15.3 %
Return on investment, (ROI) %	3.0 %	1.9 %	8.6 %	13.5 %

Business outlook

In the increasingly competitive market, Saga Furs Oyj has a strong position in the brokering of fur pelts. During the financial period of 2022/2023, the company will host auctions in March, June and September.

The company estimates that it will offer 14 million mink, 1.3 million fox and 70000 Finnraccoon pelts in the auctions held during the financial period. The quantities include 4.8 million mink, 660,000 fox and 36,000 Finnraccoon pelts already graded in the previous financial period of 2021/2022. In addition, the company will offer 130,000 sheep skins. From the start of financial period 2022/2023, North American black mink pelts will be marketed under the name Royal Black instead of the previously used BLACKGLAMA.

The group's personnel costs are expected to increase as the deferral of the grading costs occurs when the pelts are sold. The increase in energy prices and the overall cost level is expected to lead to an increase in other operating costs. The decline in the volume of financing is likely to continue, leading to further decline in the group's net financial income. The result for the financial period depends on the outcome of future auctions, which are impossible to estimate in the prevailing uncertain market conditions.

Board of Directors' proposal for distribution of profits

The Board of Directors proposes to the Annual General Meeting that a total dividend of EUR 0,14 per A share and EUR 0,14 per C share shall be paid.

Vantaa 26 January 2023

SAGA FURS OYJ

BOARD OF DIRECTORS

For further information, please contact:

Deputy CEO Juha Huttunen, tel [phone], [e-mail]