Investment case

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Fractal operates in the attractive and fast-growing global gaming market

The Company estimates that its addressable market is characterised by high growth, strong underlying growth drivers and multiple favourable consumer trends. Fractal believes that future growth will be driven by an increasing number of gamers globally, especially within the premium segment. In 2024, the number of PC gamers worldwide surpassed 1.86 billion, and this figure is projected to grow steadily through 2032.

In addition, the rise of esports, streaming, and the proliferation of gaming content on platforms such as Twitch and YouTube continues to fuel hardware upgrades and broader product adoption. The Company believes these trends contribute positively to the number of gaming products sold per gamer, particularly in the premium and design-focused segment, as viewers and aspiring players emulate the setups of professionals and influencers.

The Company has a premium brand with distinctive characteristics and a leading position within relevant communities

Fractal has developed a highly respected brand with distinctive Scandinavian design, engineering excellence, and superior product quality. The brand’s reputation is reinforced through a strong presence on platforms such as Reddit, YouTube, and Twitch.

Award-winning launches such as North XL and the Terra case during 2024, which won the Red Dot Award, continue to solidify Fractal’s design leadership and relevance within enthusiast communities.

Fractal has a strong position in the value chain and an attractive end consumer base

Fractal designs and owns its products and brands, while manufacturing is outsourced to trusted partners in China. The Company retains ownership of production tooling to ensure flexibility and quality control. Fractal’s customer base is characterised by high loyalty, design awareness, and strong purchasing power, making them an ideal demographic for premium positioning.

The company has sold over 9 million products globally and continues to focus on product longevity through robust aftersales support and a growing spare parts offering. Over 90% of sales are generated online, with an expanding presence across Amazon, Newegg, BestBuy and JD.com.

The Company has a founder-led management team with a well-documented track record

Fractal was founded by Hannes Wallin, and since January 2024 the Company is led by CEO Jonas Holst. The leadership team includes other senior figures with long experience from the gaming hardware and electronics industries. The company has driven profitable growth since its inception and has successfully expanded into new categories such as gaming chairs and headsets.

Fractal has a strong financial profile with a history of high growth and strong margins

Fractal recorded net sales of SEK 697.9 million in 2024. Despite a softer market climate, the company delivered an EBITDA margin of 12.0% and maintained strong cash generation, ending the year with a net cash position of SEK 50.6 million. Fractal continues to invest in product development and marketing, preparing for growth across new categories and markets.

Since 2010, the Company has grown organically with a focus on premium design and customer-driven innovation. Its three-year average adjusted EBITDA margin stands at 15.4%.

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The information contained in this section of Fractal’s website is restricted and is not for release, publication or distribution, directly or indirectly, in whole or in part in, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or in any jurisdiction in which such release, publication or distribution would be unlawful or would require registration or other measures besides those required under Swedish law. We apologise for any inconvenience this may cause. Click here to return to the homepage.

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Due to legal restrictions, the information on this part of the website is not directed at or accessible to certain persons. We kindly ask you to review the following information and provide the following confirmation each time you wish to access this part of the website. Please note that the terms set out below may be altered or updated and therefore it is important that you review them each time you visit this website.

The information contained in this section of Fractal Design’s website is not intended for, and must not be accessed by, or distributed or disseminated, directly or indirectly, in whole or in part, to persons resident or physically present in the United States of America (including its territories and possessions, any state of the United States and the District of Columbia, the “United States”), Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction, and does not constitute an offer to sell or the solicitation of an offer to buy or acquire, securities of Fractal Design in the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any jurisdiction where to do so might constitute a violation of the local securities laws or regulations of such jurisdiction.

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Any offer of shares in any member state of the EEA or in the United Kingdom (each a “Relevant State”) (with the exception of Sweden) will be made pursuant to an exemption under Prospectus Regulation from the requirement to publish a prospectus for offers of shares. As a consequence, the Securities may only be sold in any Relevant State pursuant to an exemption under the Prospectus Regulation. This portion of the website is directed only at persons who are “qualified investors” within the meaning of Article 2(e) of the Prospectus Regulation. For the purposes of this paragraph the expression “Prospectus Regulation” means Regulation (EU) 2017/1129 (as amended or superseded).

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Access to the information and documents contained on the following websites may be illegal in certain jurisdictions, and only certain categories of persons may be authorized to access such information and documents. All persons residing outside of Sweden who wish to have access to the documents contained on this website should first ensure that they are not subject to local laws or regulations that prohibit or restrict their right to access this website, or require registration or approval for any acquisition of Securities by them. No such registration or approval has been obtained outside Sweden. Fractal Design assumes no responsibility if there is a violation of applicable law and regulations by any person.

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