Correction due to incorrect reference to MAR

Fram Skandinavien AB (publ) announces today that the annual report and consolidated financial statements for the financial year 2023 is available on the company's website, https://investors.fram.asia.

The annual report is also attached in its entirely to this press release.

Key highlights

As of the 31st of December 2023, the estimated total net asset value for Fram B shareholders amounted to 247 mSEK, which corresponds to approximately 68 SEK per share. As of the same date, the closing price for the B share was 29.7 SEK per share.

The NAV per share was approximately 130% above the closing price of the Fram B share on the same day and represented a decrease of -12% compared to 31st of December 2022. As of the year end, the closing price per share resulted in a discount of approximately -57% compared to the NAV/share.

During the year 2023, Fram prioritized enhancing the profitability of its portfolio companies, improving capital efficiency by implementing cost reduction measures, both in the ventures and on the group level. The effect of these measures will not be fully visible until the final month of Q1 2024.

For DragonLend, the local auditors of its operating company in Vietnam preferred to make a year-end provision/write-off of ca. 2/3rds of all receivables in DragonLend (ca. 14 mSEK). This booking was made despite most of these clients only being a few days late on payments (which is common in this client group) and the clients in question still paying back the loan receivables on an extended timeline based on signed payment plans. This local audit practice is conservative, but has no immediate cash effects or effects on the NAV. Furthermore, the Group also sees no impact from this on the ongoing potential divestiture dialogues. The Group’s internal estimates of receivables potentially at risk is less than one fourth of the amount provisioned/written off.