Rocker AB (publ) Interim Report January June 2021

Rocker AB (publ) | Interim Report January–June 2021 0

Rocker AB (publ)

Interim Report January–June 2021


Rocker AB (publ), 559046-8574, January–June 2021 Interim Report

Q2 April–June 2021 Comparative figures refer to the same period in the previous year

• The number of customers increased by 39% to 161,000 (116,000) at quarter end

• Rocker Pay’s transaction volume increased by 453% to SEK 195.2 (35.3) million

• Net sales decreased by 1% to SEK 21.8 (22.0) million

• Consolidated operating expenses increased by 96% to SEK -63.7 (-32.5) million

• Both EBT and the loss for the period were SEK -41.6 (-10.0) million

Significant events

• New generation of Rocker app launched

• Savings accounts launched with initial variable 0.95% interest and deposit insurance

• Mobile payment solutions Google Pay and Apple Pay launched

• Rocker Cashback loyalty program launched

• Subsidiary Rocker Buddy established, a new service for C2C used car transactions

• Rocker AB (publ) formed a corporate group

• Joanna Hummel elected new director at AGM Dennis Ahlsén new chairman of board

• Resolution on new stock option plan passed at AGM

Significant events after end of quarter

• No significant events occurred after the end of the quarter.

Financial ratios

Amounts in SEK thousand Apr–Jun ¹

2021 Apr–Jun ¹

2020 Jan–Jun ¹

2021 Jan–Jun ¹

2020 Jan–Dec ¹

2020

Net sales 21,769 21,992 40,100 48,825 89,074

Operating expenses -63,726 -32,538 -98,278 -95,832 -162,927

EBT -41,643 -10,085 -57,585 -46,071 -72,358

Profit/loss for the period -41,643 -10,085 -57,585 -46,071 -72,358

Earnings per share (SEK) -0.53 -0.13 -0.74 -0.59 -0.93

Equity ratio (%) 87% 93% 87% 93% 92%

Number of customers 161,000 116,000 161,000 116,000 135,000

¹ Rocker AB (publ) has had a subsidiary, Rocker Buddy AB, since 30 April 2021 and will prepare consolidated financial statements as of the 2021 financial year. To enable comparability, the

financial results reported above for periods this year, in running text and in the notes, are the Group's results for the current year. For the comparative period, the previous year, the results

reported are the Parent Company's figures. The combined financial statements are in an appendix to the interim report.


Message from the CEO

Significantly broadened offering In the second quarter of 2021, we launched a completely new generation of the Rocker app with a significantly broader product range, including our first savings services. The launch has been successful, resulting in thousands of new customers. At the same time, Rocker Pay’s transaction volume increased substantially in the growing sec-ond-hand market.

Large customer inflow after new app launch In the second quarter, our customers increased by 39% to 161,000, which resulted from the successful launch of a new generation of the Rocker app and the continuous release of new products and services in the app during the period. Substantially greater interest in and use of Rocker Pay services also contributed to the strong growth in customers. Our ongoing shift in focus for Rocker You, from marketing loans to a significantly broader product range, initially results in lower reve-nue streams but unlocks greater revenue potential over time. Net sales were stable during the quarter, totaling SEK 22 (22) million. However, operating expenses increased by 96% year-on-year, in part due to increased marketing of our new services in Rocker You, resulting in an operating loss of SEK -42 (-10) million for the period.

With the new app, we took a major and significant step towards our goal of offering a complete range of financial services for everyday life. In this respect, we are competing with the major, established banks for their personal customers in an enormous market under-going sweeping change. The new app features several new services to simplify everyday fi-nancial life for consumers, including a smart feature for saving re-ceipts, cost sharing, budgeting, and savings accounts. With the Rocker Connect service, customers can view transactions from dif-ferent banks all in one place. This gives customers an overview of their finances and enables them to manage payments, pay for pur-chases slower on credit, or share costs, regardless what banks or cards the customer originally used. This opens up further opportu-nities to innovate and develop more attractive services. Mobile payments were also launched during the period, with Google Pay and Apple Pay incorporated into our payment platform in an aim to enable customers to pay however they want.

Savings feature a big hit

We are proud of the successful launch of our new savings service, which offers customers high-interest savings accounts protected by deposit insurance. Within a short period of time, the inflow of savings increased to around SEK 300 million, which exceeded our expectations.

With the launch of the app and many new services, we also kicked off new marketing campaigns leveraging influencer collaborations, podcasts, television commercials, and sponsorship of Euro 2020 football broadcasts.

Pay volume doubled in one quarter

During the COVID-19 pandemic, the circular economy broke new records in Sweden. Increased trade in used goods and the fact that our services are being discovered by more and more Blocket users are driving transaction volumes. Volumes for Rocker Pay were up 111% (SEK 103 million) from the previous quarter and 453% (SEK 160 million) from last year.

We continue to innovate at Rocker Pay to give consumers the same experience and security when buying used goods directly from each other as they would with an e-commerce checkout. In Sweden alone, the market for used goods and vehicles is valued at SEK 240 billion. Our latest innovation to be launched is Rocker Buddy, a service that offers simpler, more secure and more affordable C2C car transac-tions, improves the buyer and seller experience, and challenges the established car dealership industry. In parallel, we are developing a service with an open API that will be available to all consumers regardless which marketplace they use. The service includes the capability to pay by invoice or in instalments and positions us to grow broadly into all kinds of C2C transactions. In parallel, Rocker is preparing for international expansion, initially in Germany, the Netherlands and Spain, along with the rest of the Nordics. An IPO is one of several possible options for funding geo-graphic expansion, continued customer growth, and further prod-uct broadening and this is an option we are actively exploring. Hanna Neidenmark CEO


22

21

19

18

22

Q22020

Q32020

Q42020

Q12021

Q22021

Nettoomsättning (MSEK)

-10-6

-20-16

-42

Q22020

Q32020

Q42020

Q12021

Q22021

Resultat före skatt, EBT (MSEK)

116 123135 134

161

Q22020

Q32020

Q42020

Q12021

Q22021

Antal kunder (tusental)

Q2 2021

Cash flow and investments

Despite significantly lower earnings, cash flow from operating activ-ities was unchanged year-on-year, totaling SEK -15 (-15) million. The primary reason for this is a positive change in working capital at-tributable to the Group selling loan receivables previously recog-nized on its own balance sheet to an external party. Cash flow from investing activities amounted to SEK -1 (0) million. The Group’s policy is to charge all internally generated development expenditure to expense, which is why this type of expenditure is in-cluded in operating profit or loss and, accordingly, in cash flow from operating activities. The change in financing activities is attributable to issued option premiums. For the Group’s credit-related and lending-related operations, the Company has a practice that essentially involves only brokering loans to other banks, which means that the Group is not a lender and thus does not recognize underlying loan receivables on its own balance sheet.

Liquidity

Consolidated cash and cash equivalents at 30 June 2021 totaled SEK 162 (261) million. Additionally, the Group has other liquid assets re-ported in the financial statements as

Current assets excluding cash and cash equivalents, which were transferred to other banks and payment institutions to streamline various parts of the Company’s operating activities. These assets can be redeemed without preconditions and paid back immediately if desired. Including these assets, liquidity amounted to SEK 219 (270) million at 30 June 2021. The Group does not have any interest-bear-ing liabilities.

Equity and equity ratio

Equity at 30 June 2021 totaled SEK 231 (305) million. The equity ra-tio was 87% (93%). Apart from the loss for the period, the change in equity from the start of the year is attributable to issued stock op-tions. Rocker has stock option plans for the board, senior executives and other key personnel. The participants acquired the options at mar-ket value, which was calculated using the Black-Scholes pricing model. The total number of stock options outstanding at 30 June 2021 was 6,269,500 and each option entitles the holder to subscribe for one new share in the Company, If all options are exercised, dilution would be approximately 8% of the total number of shares.

Number of customers

In the second quarter of 2021, the number of active customers in the Group increased by 39% to 161,000. The increase in customers reflected the impact of the launch and marketing of the new generation of the Rocker app for Rocker You and the significant increase in the use of Rocker Pay services. The transaction volume for Rocker Pay increased by 453% to SEK 195 (35) million.

Revenue

Net sales amounted to SEK 22 (22) million for the quarter. Sequentially, net sales were up 19% from the first quarter. Net sales for Rocker You decreased by SEK 8 million year-on-year, which is mainly a result of lower fee and commission income from brokered unsecured loans. The primary reason is the ongoing shift toward a broader product range with significantly lower marketing investments in loans over the past quarters, which initially causes revenue to decrease but unlocks greater revenue potential over time. Revenue was also impacted negatively by higher credit losses on underlying brokered loans in the quarter. Net sales for Rocker Pay increased from SEK 0 to SEK 8 million year-on-year. This increase is attributable to the establishment of Rocker Buddy with initial car transactions and increased use of the checkout service on Blocket with growing volumes.

Earnings

Operating expenses increased to SEK -64 (-33) million in the quarter. Much of the increase was a result of higher marketing expenses, which totaled SEK -20 (-5) million for the quarter, driven by marketing campaigns for the new app and other marketing investments to increase Rocker’s brand awareness. The establishment of Rocker Buddy as a part of Rocker Pay had an SEK -7 (0) million impact on direct operating expenses during the quarter. In addition, operat-ing expenses increased as a result of the Group's focus on broadening its product range and preparing for expansion to new markets. The Group charges all internally generated develop-ment expenditure to expense. Operating expenses include non-recurring expenses totaling SEK 6 million. The loss for the period before and after tax was SEK -42 (-10) million.


Rocker You Rocker You offers financial services for planning and managing everyday finances, including account information services, payment services, savings services and loans. Its business model includes cross sales for loans and sales of fee-based services. The business area was renamed from Save & Spend to Rocker You in Q2 2021. As of Q2, the business area also includes loans.

1 OPX Partners

Market outlook

The personal banking market is undergoing a structural change as a result of heavy pressure from underlying market trends, which opens up the traditional value chain for banking and payment ser-vices to new challengers winning market share. The market is driven in part by the digitalization of services and commerce, new consumer behaviors with increased mobility and a greater inclina-tion to choose several different suppliers, and changes in the regu-lation of financial services. In total, the outstanding amount for personal loans without collat-eral in 2020 amounted to approximately SEK 150 billion in Sweden. The market for loan brokers has experienced strong growth, and loan brokers are expected to continue taking market share. The growth rate for brokers is expected to be 6–8% between 2020–2025. The market for revolving loans, including increased credit lim-its for credit cards, amounted to SEK 100 billion in Sweden and is forecast to grow by around 14% between 2020–2025. This growth is primarily driven by the increasingly widespread use of invoice pur-chases via “buy now, pay later” services. Almost all personal cus-tomers in Sweden, around 8.4 million, have a bank account and a bank card, which reflects continuing great potential for financial ser-vices in relation to bank cards, including fee-based or subscription-based services.1

Financial performance

Net sales for Rocker You amounted to SEK 14 (22) million in Q2 2021, a 38% year-on-year decrease. The number of active Rocker You cus-tomers increased by 8% from last year to 94,000 in the period. The number of active customers is defined as a customer who had an active exposure and/or interacted with one or more of the Group’s services in the last 12 months, which means that 8% is a net increase of new customers and a loss of former customers. Rocker You’s fi-nancial performance reflected its shift to a broader product range, which initially causes revenue to decrease but unlocks greater reve-nue potential over time. The business area's revenue was impacted by lower marketing investments for loans over the past quarters and lower fee and commission income as a result of higher credit losses on underlying brokered loans.

Apr–Jun 2021

Apr–Jun 2020

Net sales, SEK thousand 13,508 21,729

Number of customers 94,000 87,000

Events in the period The new generation of the Rocker app was launched to the general public during the quarter following testing with existing customer groups in the first quarter. The app has a new design, a significantly improved user experience and includes several new services to sim-plify everyday financial life for consumers. The app has features for budgeting, saving receipts digitally, sharing costs with friends, and taking out a loan, while also including “buy now, pay later” features to finance purchases. With the new account information service Rocker Connect, customers can view transaction data from different banks in one place, get an overview of their finances and manage transactions including paying for purchases slower regardless what banks or cards the customer originally used. A savings service with Rocker was launched during the quarter, in-cluding savings accounts with the option to choose variable or fixed interest at competitive rates, initially 0.95% with variable interest, with deposit insurance. The launch resulted in a large inflow of new savings customers and savings. The underlying savings accounts are provided by Erik Penser Bank. In the second quarter, Rocker introduced mobile payments as a part of the Company's strategy to offer smart payment solutions on sev-eral different platforms. In April, Rocker customers were given ac-cess to Google Pay, and Apple Pay was introduced in June. The third major mobile payment platform, Samsung Pay, is slated for lunch later in the year. The Rocker Cashback loyalty program was launched at the end of the period. The service gives card users from 0.5% up to 10% cash back on purchases made with the Rocker card. With the launch of the new app and associated services, new mar-keting campaigns were kicked off that leveraged influencer collabo-rations, podcasts and television commercials, including sponsor-ships of the Ice Hockey World Championship, Euro 2020 football and the Olympics.


Rocker Pay Rocker Pay offers checkout solutions for C2C used goods transactions. These services enable consumers to buy used goods online as easily as new goods with safe and secure payments, shipping solutions, receipts and financing. These services are currently offered to Blocket’s customers, providing payment solutions with the option to pay in instalments or by invoice. Blocket is Sweden’s largest classifieds for used goods. Rocker also offers its newly launched service Rocker Buddy, which simplifies C2C used car transactions.

2 OPX Partners 3 PostNord e-handelsrapporten 2020

Market outlook

The market for used goods was valued at about SEK 750 billion in 2020, with vehicles accounting for SEK 220 billion of this amount and cars the most significant category, while horizontals (general used goods) accounted for SEK 20 billion. This market is forecast to experience major growth in the coming years, 10–18% for horizontals and 5% for C2C car transactions, per year through 2025. This growth is driven by growing e-commerce, increased demand for sustainable goods and sustainable com-merce, and a generational shift in consumer behavior toward the circular economy. In Sweden, digital commerce involving used goods currently ac-counts for around 80% and is expected to generate most of the growth.2 In e-commerce, consumers generally have a strong pref-erence for “buy now, pay later” solutions. 50% of Swedish consum-ers prefer to pay by invoice. 3

Financial performance

The second quarter of the year is the strongest quarter seasonally for the second-hand market and net sales for Rocker Pay increased to SEK 8 (0) million in the period. This growth was attributable to increased use of the services on Blocket, with growing volumes and the establishment of Rocker Buddy with initial car transactions. The revenue recognized for the Rocker Buddy transactions includes the value of the transactions’ underlying security. This revenue to-taled SEK 7.8 million in the quarter, and at the time of revenue recognition, resulted in direct expenses amounting to SEK 7.4 mil-lion. Transaction volumes were SEK 195 (35) million, representing a 495% year-on-year increase. Transaction volumes were up 111% from the previous quarter.

april – jun 2021

april – jun 2020

Net sales, SEK thousand 8 261 249

Transaction volume, SEK thousand 195 154 35 303

Events in period Rocker Pay’s business strategy features continuing volume growth through Blocket and expansion to more verticals with revenue streams that include both transaction fees and revenue from “buy now, pay later” options. Additional measures were implemented during the quarter to opti-mize the use of the services on Blocket. For instance, Rocker Pay introduced the option to pay by card when shopping on Blocket. A new line of business and service, Rocker Buddy, was established during the period with an offering aiming to make car transactions directly from consumer to consumer (C2C) easier, more secure and more affordable. With this new service, Rocker Pay aims to chal-lenge the established car dealership industry. Rocker Pay and logistics company Bussgods have initiated collabo-ration on secure and flexible payments for shipping services and goods shipped with Bussgods, with Rocker delivering the payment solutions. Additionally, Rocker Pay and legal tech company Swiftcourt have started a pilot project to develop a new standard for how tomorrow’s used goods transactions will work. The pilot project is a part of Rocker Pay’s ongoing development of a checkout solution with an open API that will enable consumers to use the services on their own regardless which marketplace they are on.


Other information About the company

Rocker AB (publ) is a fintech company based in Stockholm with a vision to build the market's best platform for everyday financial ser-vices and sustainable payments. Rocker’s Rocker You business area provides services for savings, payments, account information and loans in the Rocker app. The Rocker Pay business area enables secure and flexible consumer-to-consumer (C2C) used goods transactions on marketplaces including Blocket, Sweden’s largest classifieds for used goods. Rocker is licensed as a payment institution in the EU and is super-vised by the Swedish Financial Supervisory Authority.

Risks and uncertainties

Rocker is exposed to multiple significant risks as a natural result of its specific type of business and several main risk areas are stated below. The Group is subject to risks associated with its specific type of busi-ness, including technical risks and dependencies on the Group’s IT infrastructure, dependencies on partners, dependencies on the ca-pability to recruit and retain key personnel, risks related to the growth strategy devised, and the risk of credit losses on the loans the Group brokered and obtains recurring revenue from. The Group operates in an industry characterized by relatively high competition and could be affected by macroeconomic conditions. Additionally, the Group is dependent on a license to conduct its business and is subject to laws, regulations and government guide-lines. In this context, for instance, the Group is exposed to risks as-sociated with new potential laws and regulatory changes and to risks associated with money laundering, terrorism and data security. With respect to the Group’s financial position, the Group will need additional liquidity and capital to follow the growth plan devised for the coming years.

Forward-looking statements

This report contains forward-looking statements. Such statements are associated with risk and uncertainty. Actual performance and results may differ significantly from the expectations expressed by the Company due to several factors largely outside of Rocker’s con-trol.

AGM and board

Rocker’s Annual General Meeting (AGM) was held on 17 May 2021. The AGM elected Dennis Ahlsén, Ann-Sophie Hesser, Jonas Hultin, Joanna Hummel (new), Christian Krüeger, Vivianne Holm and Rich-ard Sandenskog to serve as directors. Dennis Ahlsén was appointed chairman of the board by the AGM. The AGM resolved to adopt stock option plans 2021:1 and 2021:2 in order to reward long-term commitment from Rocker’s employees and board, to ensure the Company’s long-term growth in value is reflected in the plan participants’ remuneration, to support the ca-pability to recruit and retain skilled staff and directors, and to boost alignment among the Company’s employees and shareholders.

Share information

The Company’s top ten shareholders are disclosed below. The per-centage of ownership figure includes both capital and votes.

Shares held Owner-

ship

Schibsted 24,886,000 32 %

LMK 13,673,500 17 %

Dennis Ahlsén (via bolag) 5,129,000 7 %

Jonas Hultin (via bolag) 5,129,000 7 %

Daniel Laiti (privat och via bolag) 2,867,500 4 %

Mathias Johansson (privat och via bolag) 2,412,500 3 %

Thomas Hjelm 1,894,500 2 %

Hållbar AB 1,170,000 1 %

Thomas Viklund 963,500 1 %

Johavid Invest 955,000 1 %

Other shareholders 19,210,500 25 %

Total 78,291,000 100 %

Employees

Including part-time employees, the Company’s total number of employees was 53 (50) at the end of the period.

Formation of corporate group

Rocker AB (publ) has had a subsidiary, Rocker Buddy AB, since 30 April 2021 and will prepare consolidated financial statements as of the 2021 financial year.

Prevailing language

This report is published in both Swedish and English. The Swedish text is valid for all purposes. In the event of any discrepancies be-tween the two language versions, the Swedish version shall prevail.

Review report

This interim report has been reviewed by Rocker’s auditors.

Contact information

Investerare: [email protected] Media: [email protected] Hanna Neidenmark, CEO 070-5448069 Frida Bexelius, CFO 070-6821279

mailto:[email protected]

mailto:[email protected]


Condensed Consolidated Income Statement Amounts in SEK thousand Note

2021 Apr–Jun

Net sales 2 21,769

Other operating income 284

Total operating income 22,052

Direct expenses -7,372

Other external expenses 3 -41,111

Employee benefit expenses -14,964

Depreciation, amortization and impairment losses on tangible and intangible assets -273

Other operating expenses -6

Total operating expenses -63,726

Operating profit/loss -41,675

Profit/loss from financial items

Other interest income and similar items 32

Other interest expenses and similar items -1

Total financial items 31

Profit/loss after financial items -41,643

Taxes 0

Profit/loss for the period -41,643

Basic and diluted earnings per share -0.53


Condensed Consolidated Balance Sheet

Amounts in SEK thousand Note 30/06/2021

Assets

Intangible assets 2,288

Tangible assets 816

Financial assets 4,830

Current assets excluding cash and cash equivalents 4 93,468

Cash and cash equivalents 161,820

Funds in trust 4,000

Total assets 267,222

Liabilities and equity

Equity 231,376

Current liabilities

Trade payables 4,027

Current tax liabilities 609

Other current liabilities 8,802

Accrued expenses and deferred income 22,408

Total liabilities and equity 267,222

Consolidated Statement of Changes in Equity

Amounts in SEK thousand

30/06/2021

Equity on founding of Group 272,657

Stock options issued 362

Profit/loss for the period -41,643

Equity at end of period 231,376


Condensed Consolidated Cash Flow Statement


2021 Apr–Jun

Operating activities

EBT -41,643

Non-cash items 259

Change in current receivables and inventories 16,258

Change in current liabilities 10,327

Cash flow from operating activities -14,799

Investing activities

Acquisitions of intangible assets -554

Cash flow from investing activities -554

Financing activities

Option premiums 362

Cash flow from financing activities 362

Cash flow for the period -14,991

Cash and cash equivalents on founding of Group 233,970

Cash and cash equivalents at end of period ¹ 218,979

¹ The cash and cash equivalents at end of period item above comprises balance sheet items defined as:

Cash and cash equivalents 161,820

Current assets excluding cash and cash equivalents 57,159

Total 218,979


Condensed Parent Company Income Statement Amounts in SEK thousand

Note 2021 Apr–Jun

2020 Apr–Jun

2021 Jan–Jun

2020 Jan–Jun

2020 Jan–Dec

Net sales 2 14,007 21,992 32,339 48,825 89,074

Other operating income 313 266 557 542 1,036

Total operating income 14,320 22,258 32,896 49,367 90,110

Other external expenses 3 -40,514 -18,484 -59,466 -67,625 -107,743

Employee benefit expenses -14,964 -13,783 -30,288 -27,665 -54,091

Depreciation, amortization and impairment losses on tangible and intangible assets -273 -268 -537 -523 -1,054

Other operating expenses -6 -3 -17 -19 -39

Total operating expenses -55,757 -32,538 -90,308 -95,832 -162,927

Operating profit/loss -41,437 -10,280 -57,412 -46,465 -72,817


Other interest income and similar items 76 197 110 398 466

Other interest expenses and similar items -1 -2 -1 -4 -7

Total financial items 75 195 109 394 459

Profit/loss after financial items -41,362 -10,085 -57,303 -46,071 -72,358

Taxes - - - - -



Condensed Parent Company Balance Sheet

Amounts in SEK thousand Note 30/06/2021 31/12/2020 30/06/2020

Assets

Intangible assets 2,288 2,013 2,043

Tangible assets 816 1,053 1,354

Financial assets 6,380 24,799 22,871

Current assets excluding cash and cash equivalents 4 92,238 47,108 37,963

Cash and cash equivalents 161,820 232,497 260,601

Funds in trust 4,000 3,474 1,357

Total assets 267,542 310,944 326,189


Equity 231,658 286,664 304,570

Non-current liabilities

Other non-current liabilities - - 135

Current liabilities and provisions

Provisions - 50 2,192

Trade payables 3,295 6,016 1,699

Current tax liabilities 609 803 574

Other current liabilities 9,862 5,978 5,583

Accrued expenses and deferred income 22,118 11,433 11,436

Total liabilities and equity 267,542 310,944 326,189

Parent Company Statement of Changes in Equity


2021 Jan–Jun

2020 Jan–Jun

2020 Jan–Dec

Equity at start of period 286,664 350,641 350,641

Stock options issued 2,297 - 202

New share issue via shares subscribed with options 4,086 - 4,093

New share issue in progress via shares subscribed with options -4,086 - 4,086

Profit/loss for the period -57,303 -46,071 -72,358

Equity at end of period 231,658 304,570 286,664

The share capital was SEK 3,914,550 divided into 78,291,000 shares at 30 June 2021.


Condensed Parent Company Cash Flow Statement


2021 Apr–Jun

2020 Apr–Jun

2021 Jan–Jun

2020 Jan–Jun

2020 Jan–Dec


EBT -41,362 -10,085 -57,303 -46,071 -72,358

Non-cash items 259 16 488 -723 -2,324

Change in current receivables and inventories 15,939 1,858 11,227 -9,305 -13,660

Change in current liabilities 10,365 -6,755 11,654 -4,118 890

Cash flow from operating activities -14,799 -14,966 -33,934 -60,217 -87,452


Acquisitions of tangible assets - - -22 -184 -347

Acquisitions of intangible assets 554 - -554 -20 -257

Cash flow from investing activities -554 - -576 -204 -604


Repayment of borrowings - -18 - -35 -50

New share issue via shares subscribed with options - - - - 8,179

Option premiums 362 - 2,297 - 202

Cash flow from financing activities 362 -18 2,297 -35 8,331

Cash flow for the period -14,991 -14,984 -32,213 -60,456 -79,725

Cash and cash equivalents at start of period 233,970 285,445 251,192 330,917 330,917

Cash and cash equivalents at end of period ¹ 218,979 270,461 218,979 270,461 251,192


Cash and cash equivalents 161,820 260,601 161,820 260,601 232,497

Current assets excluding cash and cash equivalents 57,159 9,860 57,159 9,860 18,695

Total 218,979 270,461 218,979 270,461 251,192


Notes to the financial statements

This interim report has been prepared in compliance with the Swedish Annual Accounts Act and the general advice of the Swedish Accounting

Standards Board in BFNAR 2012:1 Annual Reports and Consolidated Financial Statements (“K3”). These policies have not been changed since

the most recently submitted annual report. The Company reports in SEK thousand unless otherwise stated. Rounding differences may occur.

Amounts and figures in parentheses are comparative figures for the same period in the previous year. Rocker AB (publ) has had a subsidiary,

Rocker Buddy AB, since 30 April 2021 and will prepare consolidated financial statements as of the 2021 financial year. To enable comparability,

the results reported for this year are consolidated figures. Unless otherwise stated, figures in parentheses refer to the corresponding values for

the same period in the previous year, but only the Parent Company’s results.

Amounts in SEK thousand 2021

Apr–Jun 2020

Apr–Jun 2021

Jan–Jun 2020

Jan–Jun 2020

Jan–Dec

Rocker You 13,508 21,729 31,273 48,541 87,983

Rocker Pay ¹ 8,261 249 8,827 285 1,091

Total net sales 21,769 21,992 40,100 48,825 89,074

¹ SEK 7,761 (0) thousand of the revenue was attributable to transactions that generated SEK -7,372 (0) thousand in direct expenses at the time of revenue recogni-

tion.

Amounts in SEK thousand 2021

Apr–Jun 2020

Apr–Jun 2021

Jan–Jun 2020

Jan–Jun 2020

Jan–Dec

Marketing expenses -19,736 -4,665 -24,336 -38,391 -52,768

Other external expenses -21,375 -13,819 -35,738 -29,234 -54,975

Total other external expenses -41,111 -18,484 -60,074 -67,625 -107,743

SEK 57,159 (9,860) of the Company’s other receivables comprise cash and cash equivalents that were transferred to other banks and payment

institutions to streamline various parts of the Company’s operating activities. These assets can be redeemed without preconditions and paid

back to the Company immediately if desired.

Amounts in SEK thousand 30/06/2021 31/12/2020 30/06/2020

Pledged assets

Assets subject to retention of title - - 205

Pledged bank deposits 15,000 15,000 15,000

Other obligations

Credit limits granted but not utilized 351 16,426 14,379

Net sales NOTE 2

Pledged assets and contingent liabilities

NOTE 5

NOTE 4 Current assets excluding cash and cash equivalents

NOTE 1 Accounting policies

Other external expenses

NOTE 3


All transactions with related parties have been made on market terms.

There were not any significant events after the balance sheet date.

NOTE 6 Transactions with related parties

NOTE 7 Events after the balance sheet date


Definitions of financial ratios

Several of the Group’s alternative financial ratios used in this interim report are listed and defined below. These are used in the report to help investors understand the Group’s performance.

Financial ratios Definition

Number of customers The number of customers who had an active exposure and/or interacted with one or more of the Group’s ser-vices in the last 12 months, rounded to the nearest thousand.

Rocker Pay – Transaction volume Total completed purchase volume in the Group’s checkout service

Net sales For the Group’s credit-related business, fee and commission income is received regularly based on the under-lying portfolio results of brokered loans. The Group recognizes this fee and commission income on a net basis, which means that underlying credit losses are included in net sales.

Earnings per share Earnings after tax divided by average number of shares in the period

Equity ratio Equity as a percentage of total assets


Signatures and assurance

The board of directors and CEO assure that this interim report provides a true and fair view of the Group and Parent Company’s business, finan-cial position and financial performance and discloses significant risks and uncertainties to which the Group and Parent Company are exposed.

Stockholm 2021-

Dennis Ahlsén

Chairman

Hanna Neidenmark CEO

Jonas Hultin Director Vivianne Holm Director

Richard Sandenskog Director Ann-Sophie Hesser

Director

Christian Krüeger Director Joanna Hummel Director


Appendix – Pro Forma Financial Statements Rocker AB (publ) has had a subsidiary, Rocker Buddy AB, since 30 April 2021 and will prepare consolidated financial statements as of the 2021

financial year. To enable comparability, this appendix presents pro forma financial statements with the figures for this year referring to the Group’s

results while comparative figures refer to the Parent Company’s results.

Pro Forma Condensed Income Statement


2021 Apr–Jun

2020 Apr–Jun

2021 Jan–Jun

2020 Jan–Jun

2020 Jan–Dec

Net sales 21,769 21,992 40,101 48,825 89,074

Other operating income 284 266 528 542 1,036

Total operating income 22,052 22,258 40,628 49,367 90,110

Direct expenses -7,372 - -7,372 - -

Other external expenses -41,111 -18,484 -60,074 -67,625 -107,743

Employee benefit expenses -14,964 -13,783 -30,289 -27,665 -54,091

Depreciation, amortization and impairment losses on tangible and intangible assets -273 -268 -537 -523 -1,054

Other operating expenses -6 -3 -6 -19 -39

Total operating expenses -63,726 -32,538 -98,277 -95,832 -162,927

Operating profit/loss -41,675 -10,280 -57,650 -46,465 -72,817


Other interest income and similar items 32 197 66 398 466

Other interest expenses and similar items -1 -2 -1 -4 -7

Total financial items 31 195 64 394 459

Profit/loss after financial items -41,643 -10,085 -57,585 -46,071 -72,358

Taxes - - - - -


Basic and diluted earnings per share -0.53 -0.13 -0.74 -0.59 -0.93


Pro Forma Condensed Balance Sheet

Amounts in SEK thousand 30/06/2021 31/12/2020 30/06/2020

Assets

Intangible assets 2,288 2,013 2,043

Tangible assets 816 1,053 1,354

Financial assets 4,830 24,799 22,871

Current assets excluding cash and cash equivalents 93,468 47,108 37,963

Cash and cash equivalents 161,820 232,497 260,601

Funds in trust 4,000 3,474 1,357

Total assets 267,222 310,944 326,189


Equity 231,376 286,664 304,570

Non-current liabilities

Other non-current liabilities - - 135

Current liabilities and provisions

Provisions - 50 2,192

Trade payables 4,027 6,016 1,699

Current tax liabilities 609 803 574

Other current liabilities 8,802 5,978 5,583

Accrued expenses and deferred income 22,408 11,433 11,436

Total liabilities and equity 267,222 310,944 326,189


Pro Forma Condensed Cash Flow Statement


2021 Apr–Jun

2020 Apr–Jun

2021 Jan–Jun

2020 Jan–Jun

2020 Jan–Dec


EBT -41,643 -10,085 -57,585 -46,071 -72,358

Non-cash items 259 16 487 -723 -2,324

Change in current receivables and inventories 16,258 1,858 11,548 -9,305 -13,660

Change in current liabilities 10,327 -6,755 11,616 -4,118 890

Cash flow from operating activities -14,799 -14,966 -33,934 -60,217 -87,452


Acquisitions of tangible assets - - -22 -184 -347

Acquisitions of intangible assets -554 - -554 -20 -257

Cash flow from investing activities -554 - -576 -204 -604


Repayment of borrowings - -18 - -35 -50

New share issue via shares subscribed with options - - - - 8,179

Option premiums 362 - 2,297 - 202

Cash flow from financing activities 362 -18 2,297 -35 8,331

Cash flow for the period -14,991 -14,984 -32,213 -60,456 -79,725

Cash and cash equivalents at start of period 233,970 285,445 251,192 330,917 330,917

Cash and cash equivalents at end of period ¹ 218,979 270,461 218,979 270,461 251,192


Cash and cash equivalents 161,820 260,601 161,820 260,601 232,497

Current assets excluding cash and cash equivalents 57,159 9,860 57,159 9,860 18,695

Total 218,979 270,461 218,979 270,461 251,192


Auditor's review report

Rocker AB (publ), org.nr 559046–8574 Introduction We have reviewed the condensed interim financial information (interim report) of Rocker AB (publ) at 30 June 2021 and the six-month period ended on that date. The board of directors and CEO are responsible for the preparation and presentation of this interim report in compliance with the Annual Accounts Act. It is our responsibility to express an opinion on this interim report based on our review engagement. Focus and extent of review engagement We have conducted our review engagement in accordance with the International Standard on Review Engagements ISRE 2410 Review of In-terim Financial Information Performed by the Independent Auditor of the Entity. A review engagement involves making inquiries, mainly to those responsible for financial and accounting issues, performing an analytical review and taking other review engagement measures. A review engagement has a different focus and is significantly smaller in scale in comparison to the focus and extent of an audit in accordance with the International Standards on Auditing and generally accepted auditing standards. The review procedures performed within the scope of a review engagement do not enable us to obtain assurance that we are aware of all ma-terial circumstances that might have been identified if an audit had been conducted. Consequently, the opinion expressed on the basis of a review engagement does not have the same level of certainty as the opinion expressed on the basis of an audit. Opinion On the basis of our review engagement, we have not found any circumstances that give us reason to believe that the interim report has not been prepared in all material respects in compliance with the Annual Accounts Act for the Group and in compliance with the Annual Accounts Act for the Parent Company. Örebro, date stated in our electronic signature Ernst & Young AB Jens Bertling Authorized Public Accountant

Rocker AB (publ) Interim Report January June 2021

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Transcript of Rocker AB (publ) Interim Report January June 2021