Letter from the CEO - february 2022

Soon the spring is here and then the first butterflies of the season will appear. THiS’s logotype symbolizes a living and "sustainable" butterfly with two wings consisting of "health and wealth". What distinguishes our brand from the image of an "ordinary" butterfly is the dot below the butterfly. It stands for the original ideas that are the starting point for our competence and financing alliance in global health and lifestyle.

Continued M&A negotiations
THiS continues to have several dialogues with interesting companies, some of which we have had a long historical relationship with. Dialogues regarding potential mergers are going as planned and we are looking into how their competence can be consolidated into the Group. We have conducted both digital and physical meetings with large and small enterprises. The potential objects have shown great interest in our M&A model and in the Group as a whole. Soon I look forward to presenting some of them together with several other interesting news. Primary focus right now is on brand owners, distributors and high-tech and innovative ideas. The total turnover for all companies that are currently in the M&A pipeline amounts to SEK 700 million with a total valuation of approximately SEK 2.3 billion.

Strengthened organizational structure for global growth
Our management team has implemented a new method for measuring and quantifying results within the Group. We are entrepreneurs in a profit- and culture-driven Group that has recently recruited additional competence partners in the fields of both HR and finance. Together, we use OKR (Objective and Key Results), which is an effective tool to set up important goals and helps us synchronize internal management in an efficient manner. Through OKR, the results that must be met and the resources needed to achieve our common goal are communicated. The advantage of the method is not only that all goals are measurable and verifiable, but also to form a strong corporate culture to share resources and experiences. The OKR method is used today by some of the world's most successful companies. Through our elaborated acquisition strategy, we remain larger and more sustainable and with our passion for change, we aim to achieve our goals quickly and efficiently.

Our M&A partner, Karuu, continues with cross-border e-commerce and provides China and HongKong with multiple Nordic brands. We have succeeded in integrating digital payment solutions to carry out international transactions. We have also developed additional distribution channels and relationships with partners who operate within various media channels. As a result, we have been able to distribute innovative consumer products from Sweden and Finland to China and HongKong.

Digital solution and system mapping have been implemented for IT infrastructure
Our four integrated business areas consist of product, distribution, communication and IT infrastructure. An API system was mapped by our data and competence team, to stream apps in social environments with humor, joy of life and knowledge dissemination, shopping and networking.

Dialogue with international investment banks
An initial dialogue has been conducted with investment banks that have shown interest in our innovative business model, which is primarily based on bringing together international entrepreneurs and consolidating their expertise in our Group. In addition to this, the investment banks have also understood how expertise in the form of intellectual capital accumulates within the Group over time, which is then reflected in the balance sheet. We have also received positive reactions to our valuation model, which forms the basis for our existing and future M&A strategy.

The Board is currently evaluating various proposals for future capital raising, we are reviewing the possibility of offering a strategic investment bank to invest and thus become a long-term anchor investor. Together with a selection of other strategic investors, it will lay the foundation for the planned international expansion.

In my next CEO letter at the end of March, I look forward to presenting additional information regarding the raising of capital and more about our upcoming acquisitions. The board currently has a task to make a number of strategic decisions on this. Until then, I wish you a wonderful start to the spring that soon will be here. Hopefully we can soon also see our business model "take its first wings for the season".

If you do not follow us on social media, you are warmly welcome to do so @THiS Group

Lucy Dahlgren,
CEO, THiS Less-is-more Group AB (publ)