momox Holding SE (formerly momox Holding AG), domiciled in Germany , is the parent company of the momox   Group. The company momox Holding GmbH was entered in the commercial register of the Berlin-Charlottenburg  Local Court (HRB 210838 B) on October 4, 2019. The registered office and headquarters of the company are at   Schreiberhauer Straße 30, 10317 Berlin, Germany. The company was converted into an Aktiengesellschaft (AG –  stock corporation) by shareholder resolution of November 17, 2021. The corresponding entry in the commercial  register of the Berlin-Charlottenburg Local Court (HRB 236301 B) was made on December 2, 2021. The company  was converted into a European Company ( Societas Europaea, in short: SE ) by shareholder resolution of  December 5, 2022. The corresponding entry in the commercial register of the Berlin-Charlottenburg Local Court  (HRB 248174 B) was made on December 13, 2022.  

The momox Group is a major retailer of used articles from private sellers. The key focus of the momox Group   here is articles such as books, media, and fashion, which are purchased (“inbound”) through its own purchasing  platform (www.momox.de, www.momox.at, www.momox.fr) and sold (“outbound”) through a variety of sales  channels such as its own platforms (www.medimops.de, www.momox-shop.fr, www.momoxfashion.com) and  third-party platforms such as Amazon and eBay.  

The consolidated financial statements were prepared in accordance with the International Financial Reporting   Standards as adopted in the European Union and in accordance with the regulations additionally applicable  pursuant to Section 315e para. 1 HGB in conjunction Art. 61 EU CR 2157/2001. The consolidated financial  statements have been prepared on a going concern basis and give a true and fair view of the assets, liabilities,  financial position and profit or loss of the group.  

The consolidated financial statements are prepared in euro, the functional currency of momox Holding SE and   the Group’s presentation currency.  

Current and non-current assets and liabilities are presented separately in the statement of financial position.   According to this, all matters that are generally realized or fulfilled within a normal business cycle of a maximum  of one year are current. All other assets and liabilities are regarded as non-current.  

The consolidated financial statements contain the financial statements of the parent company (momox Holding   SE) and of the companies it controls. Control is gained here when:  

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power of disposal can be exercised over the investee;  

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variable returns result from the equity interest; and  

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the power of disposal can be used to influence the amount of the returns.  

The consolidated financial statements include momox Holding SE and its subsidiaries over which control is   exercised within the meaning of IFRS 10. The number of subsidiaries included in the consolidated group did not  change in the fiscal year 2022. momox AG was, however, converted into momox SE upon registration on  December 13, 2022 (see Section 7).  

Acquisitions of subsidiaries  

The acquisition of business units is presented using the acquisition method. The consideration transferred in a   business combination is measured at fair value. This is calculated as the total of the fair values, as of the acquisition  date, of the assets transferred, the liabilities assumed from the former owners of the acquiree and the equity  instruments issued by the Group in exchange for the control of the acquiree. Transaction costs associated with  the business combination are recognized in profit or loss when incurred.  

The identifiable assets acquired and the liabilities assumed are measured at their fair values. The following   exceptions apply:  

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Deferred tax assets or deferred tax liabilities and assets or liabilities related to employee benefit   arrangements are measured and recognized in accordance with IAS 12 Income Taxes and IAS 19 Employee  Benefits;  

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Debt or equity instruments that relate to share-based payments or to the settlement of share-based   payments by the Group are measured on the date of acquisition in accordance with IFRS 2 Share-based  Payment (see Section 10.11).  

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Assets (or disposal groups) classified as held for sale in accordance with IFRS 5 Non-current Assets Held for   Sale and Discontinued Operations are measured in accordance with this IFRS.  

Goodwill is the excess of the sum of the consideration transferred, the amount of all non-controlling interests in   the acquiree and the fair value of the equity interest previously held by the acquirer in the acquiree over the fair  value of the identifiable assets acquired and liabilities assumed as of the acquisition date.  

Non-controlling interests in companies in the consolidated group are presented separately from the Group’s   equity. Non-controlling interests of this kind, which currently convey title and grant the holder the right in the  event of liquidation to receive a proportionate share of the company’s net assets, are measured initially either at  the fair value or at the proportionate share of the identifiable net assets. This option can be exercised again during  every business combination. Other components of non-controlling interests are measured at their fair value or  based on measures arising from other standards. Following the acquisition, the carrying amount of the non-  

controlling interests is produced from the value of the shares upon initial recognition plus the share of the non-   controlling interest in the subsequent changes in equity.  

If the consideration transferred is a contingent consideration, it is measured at the fair value applicable at the   time of the acquisition. Changes in the fair value of the contingent consideration within the measurement period  are corrected retrospectively and accordingly set off against goodwill. Corrections during a measurement periods  are adjustments to reflect additional information about facts and circumstances that arose at the time of  acquisition. However, the measurement period shall not exceed one year from the acquisition date.  

Changes in the fair value of the contingent consideration that do not represent adjustments in the measurement   period are accounted for based on how the contingent consideration has to be classified. If the contingent  consideration is equity, no subsequent measurement is made on subsequent reporting dates; its fulfillment is  accounted for in equity. Where it is not equity, contingent consideration is measured on subsequent reporting  dates at fair value and any gain or loss that results is recognized in the consolidated statement of profit and loss.  

In the case of a gradual business combination, the equity interest previously held by the company in the acquired   enterprise is remeasured at fair value at the acquisition date. A gain or loss resulting from this is recognized in  profit or loss.  

Changes in value in the equity interests previously held in the acquired enterprise that are recognized in other   comprehensive income before the acquisition date are transferred to the consolidated statement of profit and  loss when control of the acquired enterprise is gained.  

If the initial accounting for a business combination is incomplete by the end of a fiscal year, provisional amounts   are reported for the items. If new information becomes available within the measurement period that sheds light  on the circumstances at the acquisition date, the amounts that have been provisionally recognized are corrected  and additional assets or liability are recognized if necessary.  

Changes to the Group’s ownership interests in existing subsidiaries  

Changes to the Group’s ownership interests in a subsidiary that do not result in a loss of control over this   subsidiary are reported as equity transactions. The carrying amounts of the controlling interests held by the Group  and of the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary.  Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the  consideration paid or received is directly recognized in equity and attributed to the shareholders of the parent.  

When control over a subsidiary is lost, the deconsolidation gain or loss is recognized in profit or loss. This is   calculated from the difference between  

I. The total amount of the fair value of the consideration received and the fair value of the interest   retained and  

II. The carrying amount of the assets (including any goodwill), the liabilities of the subsidiary, and all non-   controlling interests.  

All amounts recognized in other comprehensive income in connection with the subsidiary are accounted for as   would be the case in a sale of the assets, i.e. reclassified to the consolidated statement of profit and loss or  transferred directly to the retained earnings.  

If investments in the former subsidiary are retained, these are recognized at the fair value established at the time   when control is lost. This value represents the acquisition costs of the interests, which are subsequently measured  in accordance with IFRS 9 Financial Instruments or in accordance with the regulations governing associate  companies or joint ventures depending on the degree of control.  

  

Monetary items in a currency other than the functional currency used by the companies of the momox Group   are translated at the applicable closing rate, while non-monetary items in foreign currency are translated at  historical rates. Income and expenses of integrated companies are recognized at the rates at the time of the  business transactions and translated at average annual rates for the preparation of the consolidated financial  statements. Relevant exchange differences are recognized in profit or loss in the other operating expenses or  other operating income.  

For the preparation of the consolidated financial statements, the assets and liability of foreign independent   operations of the momox Group are translated into the Group’s functional currency in euro, where the exchange  rates applicable on the reporting date are used. Income and expenses are translated at the average rate of the  period. The exchange differences arising from the translation of foreign independent business operations to the  Group currency are recognized in other comprehensive income, whereas the exchange differences arising from  the translation of foreign integrated business operations are recognized in profit or loss.  

The exchange rates used for the translation are presented below:  

in EUR		Closing rate	Closing rate	Annual average	Annual average
		Dec. 31, 2021	Dec. 31, 2022	price 2021	price 2022
Pound sterling	GBP	0.84	0.89	0.86	0.85
Polish zloty	PLN	4.60	4.68	4.57	4.69
US dollar	USD	1.13	1.07	1.18	1.05
Swiss franc	CHF	1.03	0.98	1.08	1.00
Swedish krona	SEK	10.25	11.12	10.15	10.63

6.2 Goodwill  

Goodwill resulting from a business combination is recognized at acquisition cost less any impairment that may be   necessary. This is subsequently subject to an impairment test, which is carried out no less than once a year. If  there are concrete indications of an impairment, an additional impairment test has to be carried out.  

For the purpose of impairment testing, goodwill is allocated to the cash-generating unit that is expected to benefit   from the synergies of the combination, irrespective of whether other assets or liabilities of the acquired enterprise  are assigned to those units or groups of units. Accordingly, the goodwill of the sole cash-generating unit (CGU)  resulting from the purchase price allocation is assigned to momox.  

If the recoverable amount of the cash-generating unit falls below the carrying amount of this unit, an impairment   loss is recognized in the statement of profit and loss that cannot be recovered. The recoverable amount is the  higher of value in use and fair value less costs to sell.  

Further information on the impairment test can be found in Sections 6.5 and 10.1.  

6.3 Other intangible assets  

Separately purchased intangible assets  

Intangible assets acquired separately, i.e. not as parts of a business combination, are essentially software licenses.   These are capitalized at cost and depreciated on a straight-line basis over their scheduled useful life in the  subsequent periods. Possible impairments are additionally taken into account.  

All intangible assets of the momox Group that have been acquired separately have a finite useful life, which   amounts to three to six years.  

Intangible assets from business combinations  

  

Intangible assets that have been acquired as part of a business combination are recognized separately from the   goodwill and measured at fair value on the acquisition date (acquisition cost). These intangible assets are  measured in subsequent periods in the same way as individually acquired intangible assets at cost less  accumulated amortization and impairment.  

The useful life of the relevant intangible assets amounts to six to fifteen years.  

	Years
Customer relationships	10
Brands	10-15
Technology	6

6.4 Tangible assets  

Property, plant and equipment are capitalized at acquisition or production cost and depreciated systematically   on a straight-line basis over their probable useful lives. Subsequent expenses are capitalized if they lead to a  change in the intended purpose or to an increase in the value in use of the property, plant or equipment. The  useful life of the property, plant or equipment is between one and fifteen years.  

	Years
Logistics fixed assets	1-14
Computer hardware	1-7
Improvements on third-party land	3-15
Other operating and office equipment	5-15

The momox Group assesses at each reporting date whether there are any indications that an asset is impaired. If   such indications exist, the momox Group estimates the recoverable amount of the relevant asset. If the carrying  amount of the asset is higher than its recoverable amount, it is reduced to this amount in profit or loss.  

Gains or losses on the disposal of property, plant and equipment are recognized in other operating income or   expenses.  

6.5 Impairment of non-financial assets  

On each reporting date, the momox Group reviews the carrying amounts of the property, plant and equipment   and intangible assets in order to establish whether there are indications of impairment of these assets. If relevant  indications are present, the recoverable amount of the asset in question is determined in order to establish the  necessary impairment loss. The recoverable amount in this context is the higher of the fair value less costs to sell  and the value in use. If the recoverable amount of the asset in question cannot be determined, it is calculated at  the level of the cash-generating unit to which the asset is allocated.  

If the recoverable amount of an asset or a cash-generating unit is lower than the carrying amount, the carrying   amount of the asset or of the cash-generating unit is reduced to the recoverable amount. The resulting  impairment loss is recognized immediately in profit or loss. As soon as there are indications that the reasons for  the impairment carried out no longer exist, the company examines the need for a complete or partial reversal.  

  

6.6 Leases  

A lease is present if the contract conveys the right to control the use of an identified asset for a period of time in   exchange for consideration.  

For all leases where the momox Group is the lessee, it recognizes the right to use the underlying asset and also a   lease liability at the commencement of the lease. Short-term leases that have a term of a maximum of twelve  months and leases for low-value assets are excepted from this. For these leases, the momox Group applies the  exemption according to which the payments associated with these leases are recognized as expenses.  

Leases are recognized in the amount of the present value of the future lease payments. The lease payments   consist of fixed and variable lease payments. The interest rate implicit in the lease has to be used in principle for  the measurement. If that interest rate cannot be readily determined, the incremental borrowing rate is used. The  lease liability is subsequently measured at amortized cost using the effective interest method.  

The amount of the right of use corresponds at the time of initial recognition to the amount of the lease liability   plus any initial direct costs of the lessee. Adjustments can additionally be necessary on account of lease incentives  received from the lessor, for payments at or before the commencement of the lease, and for reinstatement and  comparable obligations. In the subsequent measurement, the rights of use are amortized on a straight-line basis  over the underlying lease term.  

Changes to the term of the contract or to the expected lease payments lead to a remeasurement of the liability   and of the right to use the underlying asset.  

Leases can contain extension and termination options. If the exercise of the extension options or the failure to   exercise the termination options have been classed as reasonably certain, these have been taken into  consideration in the determination of the term of the contract.  

Additionally, there are leases that have been entered into for an indefinite period and both the momox Group,   as the lessee, and the lessor have been granted the right to terminate the lease where the maximum notice  period is up to twelve months. Contract conditions of this kind are used in order to allow the Group the maximum  operating flexibility in relation to the assets that are used and have accordingly been classed as short-term leases.  

The momox Group acted as a lessor in 2021 only in the case of a contractual relationship of minor importance.   There were no more contracts in this regard in the financial year.  

6.7 Inventories  

The inventories of the momox Group are recognized in principle at acquisition cost and essentially comprise   merchandise and, to a smaller extent, packaging materials.  

At the momox Group, the acquisition costs of the purchased merchandise are determined individually for each   article and are based on the purchase price that is indicated to the customer when they fill in the sales box on the  Group’s own procurement platform. This purchase price is recalculated several times a day using a pricing  algorithm that is also responsible for determining the selling price. In addition to external data such as original  and market prices, the algorithm additionally takes into consideration internal data on the actual and forecast  stock levels, processing and shipping costs, marketing activities, sales commission, and risk discounts.  

Inventories are measured at the lower of cost and net realizable value. Net realizable value is the estimated selling   price that can be obtained in the ordinary course of business less the estimated selling costs required. Risks from  above-average storage periods and/or reduced usability are taken into account at the momox Group through  appropriate write-downs. If the reasons that have led to a write-down on the merchandise have ceased to apply,  an appropriate reversal has to be recognized.  

  

No reversals or write-ups arose in fiscal year 2022.  

6.8 Financial instruments  

A financial instrument is any contract that simultaneously gives rise to both a financial asset of one entity and a   financial liability or equity instrument of another entity.  

Financial assets and financial liabilities are recognized in the consolidated statement of financial position when   the momox Group becomes party to the contractual provisions of a financial instrument.  

Financial instruments are not netted in principle. They are netted offset only if there is a right to offset and it is   intended to settle on a net basis.  

6.8.1  

Financial assets  

The financial assets of the momox Group comprise in particular trade receivables, receivables from factoring, and   cash and cash equivalents.  

Additional information can be found in Section 10.1.  

Measurement  

Financial assets are measured initially at fair value. Trade receivables that do not contain a significant financing   component and are measured at the transaction price are an exception to this. All directly attributable transaction  costs of financial assets that are not measured at fair value through profit or loss have to be taken into  consideration in the initial measurement.  

In the subsequent measurement, financial assets are measured either  

1) At amortized cost (AC),  

2) At fair value through other comprehensive income (FVTOCI), or  

3) At fair value through profit or loss (FVTPL).  

The momox Group has only financial assets that are measured at amortized cost (AC) and at fair value through   profit or loss (FVTPL).  

Financial assets are measured at amortized cost (AC) if they are held within a business model whose objective is   to collect contractual cash flow and if the conditions of contract represent solely payments of principal and  interest on the nominal amount outstanding. Subsequent to initial recognition, these financial assets are  measured at amortized cost using the effective interest method less impairment.  

Financial assets measured at fair value through profit or loss (FVTPL) are held within a business model whose   objective is not to hold financial assets in order to collect contractual cash flow and their cash flow do not  represent solely payments of principal and interest on the nominal amount outstanding.  

Derecognition  

Financial assets are derecognized in principle at the time at which the contractual rights to principal and interest   payments from financial assets expire or the financial assets are transferred to a third party.  

Receivables, including the related impairments losses, are derecognized when they are classified as uncollectible.  

 

Transfer of receivables  

As part of a factoring agreement, the momox Group transfers part of its trade receivables in exchange for cash to   a factor that assumes the credit risk (del credere risk) of the receivables. Receivables that are transferred are no  longer reported in the trade receivables item in the statement of financial position. Instead, a financial asset is  recognized that is measured at fair value through profit or loss.  

Impairment of financial assets  

In accordance with IFRS 9, impairments for financial assets are calculated using the expected credit loss (ECL)   model. According to this, a classification into three levels is carried out, which draws a distinction in terms of the  assessment period, the risk provision and the recognition of interest. The scope of the necessary impairments  depends here on the credit quality of the financial instrument.  

The levels of the impairment model are comprised as follows:  

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Level 1: For financial instruments for which the credit risk has not increased significantly as of the reporting   date since initial recognition, impairments have to be recognized in net profit or loss using the 12-month  expected credit loss. The interest is recognized on the basis of the gross carrying amount.  

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Level 2: If there is a significant increase in the credit risk as of the reporting date, the risk provision has to be   recognized for the remaining term of the asset. The expected loss is a probability-weighted estimate here.  Interest is recognized in the same way as in Level 1.  

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Level 3: If there is objective evidence for an impairment, financial instruments have to be allocated to Level   3. The risk provision is also determined on the basis of the expected loss over the remaining term. The  interest recognition has to be adjusted in the subsequent periods on the basis of the net carrying amount.  

For trade receivables, the momox Group applies the simplified impairment model provided for in IFRS 9, where   the risk provision is determined over the term. Accordingly, the momox Group derives the expected default ratio  of receivables from historical credit loss experience, which is produced from the billing and payment matching of  the online trading platforms. No differentiation is made in relation to past due accounts, as defaults on receivables  and the related write-downs have been small in size in the past.  

For cash and cash equivalents and also other financial assets, which relate essentially to receivables from   factoring, deposits, and the receivables from the majority shareholders, the default risk is classed as not significant  in principle.  

6.8.2  

Financial liabilities  

The financial liabilities of the momox Group comprise in particular the green bond, lease liabilities, as well as trade   payables.  

Additional information can be found in Section 11.1.  

Measurement  

Financial liabilities that are measured either in accordance with the effective interest method at amortized cost   (AC) or at fair value through profit or loss (FVTPL).  

Financial liabilities are measured at fair value through profit or loss when they are held for trading (e.g.   derivatives), represent a contingent consideration of an acquirer in a business combination, or have been  voluntarily allocated to this category (fair value option). All other financial liabilities are measured at amortized  cost after initial recognition.  

  

Effective interest method  

In accordance with IFRS 9, the effective interest method is a method for calculating the amortized cost of a   financial liability and allocating interest expenses to the relevant period. The effective interest rate is the rate at  which the estimated future cash payments (including all fees, charges, and transaction costs) are discounted to  the net carrying amount over the expected life of the financial instrument or, when appropriate, a shorter period.  With a change in the market interest rate, the effective interest rate of a floating rate financial instrument must  be redetermined.  

Derecognition  

Financial liabilities are derecognized once the obligation specified in the contract is discharged or canceled or   expires. The difference between the carrying amount of the derecognized financial liability and the consideration  received or to be received is recognized in profit or loss.  

6.9 Measurement of fair value  

The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a   liability in an orderly transaction between market participants on the measurement date.  

All financial assets and liabilities for which the fair value is calculated or reported are assigned to the levels of the   fair value hierarchy described below. Observable input factors are preferable to non-observable input factors  here in principle.  

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Level 1: Measurements are produced from quoted (unadjusted) prices on active markets for identical assets   or liabilities.  

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Level 2: Measurements are produced from input factors that can either be directly observed for the asset   or liability or indirectly derived from other prices.  

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Level 3: Measurements are produced from measurement models that do not use input factors observable   on the market.  

The momox Group does not exercise either for financial assets or for financial liabilities the fair value option,   which provides that financial instruments may be measured voluntarily at fair value with recognition of the  change in value in the net profit/loss for the period (FVTPL).  

6.10 Share-based payment  

Every transaction in which a company (or a company of the Group) receives goods or services from a supplier   (including an employee), either as consideration for its equity instruments or by raising debt for amounts that are  based on the price of shares or other equity instruments of the company, is defined as a share-based payment.  

The momox Group has entered into agreements for cash-settled share-based payments. An assessment is   therefore made on the reporting date of whether and in what amount a liability has to be recognized. In principle,  cash-settled share-based payments are measured at fair value initially and as of the grant date. Until the liability  is settled, the fair value is recalculated at each reporting date and at the date of settlement. Changes in fair value  are recognized in profit or loss.  

More information on share-based remuneration can be found in Section 10.11.  

  

6.11 Provisions  

The momox Group creates provisions when the Group has a current legal or constructive obligation that results   from a past event, it is more likely than not that the settlement of the obligation will lead to an outflow of assets,  and the amount of the provision could be reliably determined.  

Provisions are estimated in due consideration of all recognizable risks related to the assumed settlement amount.   This amount represents the best estimate of the settlement amount that is required to settle the present  obligation at the balance sheet date.  

Long-term provisions are discounted on the basis of an adequate interest rate.  

Dismantling obligations  

The provision is recognized in the amount of the present value of the estimated future dismantling obligations.   These currently exist in the momox Group exclusively for property leases.  

6.12 Recognition of revenue  

Sales revenue is recognized in principle at the time when the power of disposal over the promised merchandise,   including the service of the delivery, is passed to a customer and the momox Group has thus fulfilled its  performance obligation. This normally takes place upon the delivery of the merchandise ordered.  

The merchandise is dispatched in accordance with general terms and conditions of business only after the   purchase price, including delivery costs, has been paid in full. The momox Group offers its customers various  (standard market) payment methods for this, where these do not contain any significant financing components.  The payment types are shown in the accounts as debtor accounts on which the receivables from advance  payments already made by customers to the payment service providers are shown, subdivided according to the  relevant marketplaces.  

The momox Group identifies the goods and services promised in the contract with the customer as its   performance obligations. These are normally the products ordered by the customer and their shipping. The  products and the shipping are combined in a bundle, i.e. an independently identifiable performance obligation,  for accounting purposes.  

The carrying amount of sales revenue is recognized less price discounts granted, taxes, and charges. Furthermore,   rights of return (returns) that are granted are deducted from revenues. The level of the projected returns is based  on historical return rates. The momox Group recognizes a refund liability in the amount of the estimated amounts  that have to be paid back to the customers in the statement of financial position. At the same time, the cost of  materials is corrected by the acquisition costs of the purchased goods that are expected to be returned and an  asset is recognized for the right to receive returned products in the other non-financial assets.  

Refund liabilities relate to the right of customers to return products after buying them. In principle, customers   have the option to cancel purchase agreements within the statutory period of 14 days. In addition, the momox  Group grants customers an extended right of return of 30 days for fashion products.  

For coupons and payments received in advance, the transaction prices received from the customers are   recognized as contract liabilities. In these cases, sales revenues are recognized only at the time of use or of the  delivery of goods. Coupons are normally used within twelve months after they are issued. Performance  obligations that have been paid for in advance are generally fulfilled within a few days.  

   

6.13 Income taxes  

The income tax expense consists of the current and deferred tax expense. The current and deferred tax expense   is presented in the net profit/loss for the period, unless the expenses is connected with items that are recognized  either in the other comprehensive income or directly in equity.  

The current tax expense is calculated on the basis of the taxable income and in application of the tax regulations   applicable on the reporting date. The taxable income is distinguished from the net income for the year in the  consolidated statement of profit and loss on the basis of income and expenses that are tax deductible.  

The deferred taxes are determined on the basis of temporary differences between the consolidated financial   statements and the relevant tax carrying amounts in the calculation of the taxable income. While deferred tax  liabilities are recognized for all temporary differences, the recognition of tax assets depends on how probable it  is that taxable profits will be available in the future.  

The carrying amount of deferred tax is assessed at the end of each reporting period and reduced in value if it is   no longer probable that sufficient taxable income will be available in order to realize the asset in full or in part.  

The deferred taxes are calculated on the basis of the expected tax rates and the tax laws that are expected to   apply at the time of the liability is fulfilled or the asset is realized.  

Deferred tax liabilities and deferred tax assets can be offset against each other if there is a legally enforceable   right to offset current tax refund claims against tax liabilities or when these related to income taxes that are  collected by the same tax authority and the Group intends to settle its current tax assets and liabilities on a net  basis.  

6.14 Use of assumptions and estimates  

When the consolidated financial statements are drawn up, assumptions and estimates are made in accordance   with the IFRS that have an impact on the amounts presented and the related disclosures. Although these  assumptions and estimates are based on the best knowledge available and on current events and circumstances,  deviations can arise in the amounts that are actually produced. Key assumptions and estimates are made in  particular for the following matters:  

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Goodwill impairment testing; see Section 10.1  

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Calculating write-downs on merchandise and receivables; see Section 10.6  

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Defining the expected return rates; see Section 6.12  

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Calculating the discount rate for leases; see Section 6.6  

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Recognizing and measuring provisions; see Section 6.11  

The assumptions and estimates are based on assessments on the reporting date of the Group’s expected future   business performance and take into consideration the expected development of the economic environment.  Should the general conditions change, the assumptions and estimates as well as the carrying amounts of the  recognized assets and liabilities are adjusted accordingly.  

 

7. Scope of consolidation  

The following overview shows the direct and indirect shareholdings of momox Holding SE in subsidiaries as of   December 31, 2022 (list of shareholdings in accordance with Section 313 para. 2 HGB):  

No.	companies	Registered office	Currency	Shareholding of	Shareholding in 2022	Shareholding in 2021	Shareholding in 2020
1	momox SE*	Berlin	EUR	direct	100.00%	100.00%	100.00%
2	momox Services GmbH*	Berlin	EUR	No. 1	100.00%	100.00%	100.00%
3	MOMOX Polska Sp.z o.o.	Szczecin	Polish zloty	No. 1	100.00%	100.00%	100.00%

* Use of the exemption in accordance with Section 264 para. 3 HGB  

The list of shareholdings shows all the subsidiaries included in the consolidated financial statements. There are   no subsidiaries that are not included in the consolidated financial statements, joint ventures accounted for using  the equity method, associated companies, or other equity investments.  

Details of the composition of the Group as of the balance sheet date are set out below:  

	Germany	Outside Germany	Total
Included on December 31, 2021	3	1	4
First-time consolidation	0	0	0
Included on December 31, 2022	3	1	4

momox GmbH was converted into momox AG on December 1, 2021 by shareholder resolution of November 17,   2021 and entry in the commercial register of the Berlin-Charlottenburg Local Court (HRB 236261 B). momox AG  

 

was converted into momox SE by shareholder resolution of December 5, 2022 and entry in the commercial   register of the Berlin-Charlottenburg Local Court (HRB 248162 B) on December 13, 2022.  

No business combinations within the meaning of IFRS 3 were conducted in the fiscal year 2022. There were also   no changes to the consolidated group.  

The momox Group is managed as a business unit in the area of the purchase and sale of used articles from private   sellers. The internal reporting is accordingly carried out on a regular basis to the management of momox Holding  SE, which essentially allocates resources in view of the operating activities as a re-commerce company and acts  with overall responsibility for the momox Group.  

    

9.1 Sales revenue  

The sales of the momox Group can be broken down as follows:  

In TEUR	2022	2021
Books	206,004	209,546
Other*	130,578	125,591
Total	336,582	335,137

*Sales in the media and fashion areas each accounting for a share of sales of less than 20% are listed under the item "Others"  

All sales revenues are recognized at a point in time.  

9.2 Other income  

Other income of the momox Group breaks down as follows:  

In TEUR	2022	2021
Income from currency translation	855	487
Income from returns	344	373
Reimbursements arising from the AufwendungsausgleichsG	208	286
(German Expenditure Compensation Act)
Remuneration in kind	201	191
Insurance recoveries	122	119
Income from unused coupons	1,164	197
Other	1,040	1,133
Total	3,935	2,785

The item “Income from returns” concerns income that the Group receives for the return of articles that do not   satisfy the quality requirements and that the customer would like to get back. The “Other” item essentially  contains income from the increased number of vouchers issued in the previous year that were derecognized in  the financial year as well as income from the reversal of provisions (EUR 444 thousand; previous year, in particular  income from liquidated damages from a tenancy agreement in Poland: EUR 890 thousand).  

   

Staff costs break down as follows:  

In TEUR	2022	2021
Wages and salaries	52,736	48,612
Social security, post-employment and other employee benefit costs	11,037	9,807
Total	63,774	58,419

9.5 Other expenses  

Other expenses in fiscal year 2022 comprised the following:  

in TEUR	2022	2021
Costs for the purchase and sale of merchandise	68,022	80,151
Shipping costs	54,926	55,756
Purchased services and work	3,687	3,623
Overhead costs	4,646	2,732
Administrative, legal, and consulting fees	3,092	1,286
Costs of IT, telecommunications, and media	1,342	1,225
Other	7,941	7,913
Total	143,656	152,687

The costs for the purchase and sale of goods result mainly from marketing expenses and sales commissions.  

The item “Others” includes expenses for short-term leases and leases of low-value assets (2022: EUR 595   thousand; previous year: EUR 1,300 thousand; see Section 10.4), expenses from currency translation (2022: EUR  895 thousand; previous year: EUR 519 thousand), and other expenses necessary for the business operations, each  of an individual value of under EUR 1 million.  

9.6 Write-downs  

The write-downs are composed as follows:  

In TEUR	2022	2021
Tangible assets	1,908	1,686
Intangible assets	5,130	5,128
Rights of use	3,492	2,735
Total	10,530	9,550

Please see Sections 10.2 to 10.4 for more information.  

  

9.7 Financial result  

The financial result consisted of the following:  

In TEUR	2022	2021
Interest income	146	98
Interest expenses	7,708	7,244
Financial result	7,562	7,147

The Interest expenses result essentially from the green bond (2022: EUR 6,625 thousand; previous year:   EUR 6,337 thousand) and from leases (2022: EUR 357 thousand; previous year: EUR 141 thousand).  

Current and deferred taxes assets are shown in the following overview:  

In TEUR	2022	2021
Current taxes
Tax expense of the current period	3,387	2,805
Adjustments recognized in the current period for current taxes of previous years	-29	0
Deferred taxes
Income from the addition / reversal of deferred taxes	-1,872	-1,780
Expenses from the addition / reversal of deferred taxes	28	34
Total	1,513	1,059

The material deferred tax assets and liabilities recognized by the Group and the changes to them are listed below:  

in TEUR	Deferred tax assets		Deferred tax liabilities		Total
	31.12.2021	31.12.2022	31.12.2021	31.12.2022	31.12.2021	31.12.2022
Intangible assets	18	15	11,138	9,733	11,120	9,718
Other financial assets	0	0	160	30	160	30
Provisions	219	164	0	0	-219	-164
Leasing	47	104	0	0	-47	-104
Other financial liabilities	15	0	0	0	-15	0
Other non-financial liabilities	65	0	0	0	-65	0
Financial instruments	0	0	807	614	807	614
Total	364	283	12,105	10,377	11,741	10,094

Deferred tax liabilities that are connected with the intangible assets result essentially from the purchase price   allocation.  

Deferred tax assets and liabilities are netted and recognized for lease liabilities and right of use assets and relate   to deferred tax assets totaling EUR 10,437 thousand (previous year: EUR 4,715 thousand) and deferred tax  liabilities totaling EUR 10,333 thousand (previous year: EUR 4,668 thousand).  

Income tax liabilities totaling EUR 2,188 thousand (December 31, 2021: EUR 188 thousand) existed on December   31, 2022; these relate to trade taxes (EUR 1,057 thousand; December 31, 2021: EUR 0 thousand) and corporation  taxes (EUR 1,130 thousand; December 31, 2021: EUR 188 thousand). In addition, income tax receivables totaling  EUR 62 thousand (December 31, 2021: EUR 1,163 thousand), which result primarily from trade taxes (EUR 0  thousand; December 31, 2021: EUR 424 thousand) and excess corporation taxes (EUR 62 thousand; December  31, 2021: EUR 739 thousand) were present on the reporting date.  

  

10.1  

Goodwill  

The goodwill of the momox Group in the amount of EUR 108,327 thousand results from the acquisition of momox   SE (formerly momox AG) in December 2019 and was allocated in full to the momox cash-generating unit.  

The annual impairment test of the cash-generating unit was carried out on the balance sheet date. The value in   use of the cash-generating unit is calculated as the recoverable amount. The plans approved by the company  management and the relevant cash flow for the next five years, which reflect the performance of the momox  Group as well as the best estimate of the management in relation to the future development, are used here. A  terminal value is calculated for the period of the detailed planning phase in continuation of the last detailed  planning year. A growth rate of 1% is assumed here.  

The weighted average cost of capital used for discounting the net cash flow is calculated using the capital asset   pricing model (CAPM) on the basis of a risk-free interest rate, a market risk premium, and an allowance for the  credit risk (spread) as well as of the capital structure, the average tax rate, and the beta factor. A peer group of  listed companies is used to determine the systematic risk of the cash-generating unit. The weighted average cost  of capital after tax for the impairment test as of December 31, 2022 is 11.48%.  

No need for impairment resulted from the impairment test. Indications that possible changes to the key   assumptions could mean that the carrying amount of the momox cash-generating unit will exceed the  recoverable amount were not present as of December 31, 2022.  

The assumptions underlying the following calculations contain estimation uncertainties:  

•

Growth rates: The estimated growth rates are based on past experience as well as on product and   country-specific growth assumptions of the target markets. Estimated growth also takes the  internationalization strategy of the momox Group into consideration.  

•

EBITDA margins: The EBITDA margins are based on past values and give greater weight to current values.   Adjustments that take management's better understanding especially of cost drivers and increases in  efficiency into account are made for the detailed planning period.  

•

Discount rates: The discount rates represent the market forecasts concerning the specific risks to be   assigned to the cash-generating unit. The calculation of the discount rate takes into consideration the  specific circumstances of the business model here.  

We conducted a sensitivity analysis in which we separately assumed a 10% reduction in the future cash flow in the   last planning year, a 10% increase in the weighted cost of capital, or a reduction in the long-term growth rate of half  a percentage point. The result on this basis was, in the previous year, that the carrying amount of the assets exceeds  the recoverable amount of the reporting unit.  

 

10.2  

Other intangible assets  

The development of the other intangible assets can be represented as follows:  

In TEUR	Customer relationships	Brands	Technology	Total
Acquisition and production costs
As of the beginning of the 2021 period	8,098	23,770	14,502	46,370
Additions	0	0	14	14
Disposals	0	0	-1	-1
As of Dec. 31, 2021 / Jan. 1, 2022	8,098	23,770	14,515	46,383
Additions	0	0	36	36
Disposals	0	0	0	0
As of Dec. 31, 2022	8,098	23,770	14,551	46,419
Write-downs
As of Dec. 31, 2020 / Jan. 1, 2021	810	1,892	2,425	5,127
Additions	810	1,893	2,427	5,130
Disposals	0	0	-1	-1
As of Dec. 31, 2021 / Jan. 1, 2022	1,620	3,785	4,851	10,256
Additions	810	1,893	2,427	5,130
Disposals	0	0	0	0
As of Dec. 31, 2022	2,430	5,678	7,278	15,386
Carrying amounts
As of Dec. 31, 2020	7,288	21,878	12,077	41,243
As of Dec. 31, 2021	6,478	19,985	9,664	36,127
As of Dec. 31, 2022	5,668	18,092	7,273	31,033

The brands essentially include the brands momox (EUR 11,628 thousand; December 31, 2021: EUR 12,597   thousand) and medimops (EUR 5,548 thousand; December 31, 2021: EUR 6,237 thousand) with a remaining  useful life of 12 and 7 years respectively.  

 

10.3  

Property, plant and equipment  

The property, plant and equipment of the momox Group developed as follows:  

In TEUR	Other fixtures, fittings, and equipment	Advance payments and construction in progress	Total
Acquisition and production costs
As of the beginning of the 2021 period	3,096	3,785	6,882
Additions	2,759	7,312	10,071
Disposals	-448	0	-448
Reclassifications	8,765	-8,765	0
As of Dec. 31, 2021 / Jan. 1, 2022	14,172	2,332	16,504
Additions	1,003	1,328	2,331
Disposals	-186	0	-186
Reclassifications	3,648	-3,648	0
As of Dec. 31, 2022	18,637	12	18,649
Write-downs
As of Dec. 31, 2020 / Jan. 1, 2021	919	0	920
Additions	1,685	0	1,685
Disposals	-236	0	-236
As of Dec. 31, 2021 / Jan. 1, 2022	2,368	0	2,368
Additions	1,908	0	1,908
Disposals	-69	0	-69
As of Dec. 31, 2022	4,207	0	4,207
Carrying amounts
As of Dec. 31, 2020	2,177	3,785	5,963
As of Dec. 31, 2021	11,804	2,332	14,137
As of Dec. 31, 2022	14,430	12	14,442

The “Other equipment, operating and office equipment” item primarily comprises logistics fixed assets and, to a   smaller extent, computer hardware, installations, and office equipment. The “Payments on account and assets  under construction” involve in particular reclassifications for the logistics site in Leipzig, at which new warehouse  space has been rented and a new high-bay racking system has been established. In this connection, other financial  obligations totaling EUR 0.4 million (December 31, 2021: EUR 3.7 million) existed as of December 31, 2022.  

 

10.4  

Leases  

The leases of the momox Group, for which rights of use and lease liabilities are recognized, relate exclusively to   buildings (office and warehouse premises as well as logistics centers). There are currently no options to extend.  These contracts include extension options and, in some cases, options to terminate the contract. In addition,  some of these contracts include variable payments that depend on the development of consumer price indices.  

The rights of use amounted to EUR 36,925 thousand in total as of December 31, 2022 (previous year: EUR 18,924   thousand). The additions in the fiscal year 2022 primarily concern the amendments to existing leases (EUR 17,814  thousand) and the renting of additional space at the logistics centers in Leipzig and Stettin (EUR 3,805 thousand).  

The development of the rights of use can be presented as follows:  

In TEUR
Acquisition and production costs
As of the beginning of the 2021 period	19,032
Additions	4,920
Disposals	0
As of Dec. 31, 2021 / Jan. 1, 2022	23,953
Additions	21,619
Disposals	-126
As of Dec. 31, 2022	45,446
Write-downs
As of Dec. 31, 2020 / Jan. 1, 2021	2,294
Additions	2,735
Disposals	0
As of Dec. 31, 2021 / Jan. 1, 2022	5,029
Additions	3,492
Disposals	0
As of Dec. 31, 2022	8,521
Carrying amounts
As of Dec. 31, 2020	16,739
As of Dec. 31, 2021	18,924
As of Dec. 31, 2022	36,925

The contractually agreed undiscounted lease liabilities are broken down by their maturity as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Due in less than 1 year	4,011	3,276
Due in 1 to 5 years	15,297	12,688
Due in more than 5 years	26,543	3,523
Total	45,851	19,487

The interest expenses for lease liabilities amounted in the fiscal year 2022 to EUR 357 thousand (previous year:   EUR 141 thousand) and are reported in cash flow from operating activities. The repayments of lease liabilities  totaled EUR 3,670 thousand (previous year: EUR 2,815 thousand) and are presented in cash flow from financing  activities.  

Variable payments relate to rent payments that depend on the development of consumer price indices. In   principle, adjustments have been made once a year since the 2022 financial year as necessary. In the 2022  

  

financial year, the rent payable changed by approximately 6.6% due to the underlying index. The additional   payments for these index-based rent adjustments thus totalled EUR 0.1 million (previous year: EUR 0 million).  

There are currently renewal options for the warehouse space in Poland. These options to extend leases are   material from the Group's perspective and range from 1 to 5 years. Exercising all of these options could lead to  an additional cash outflow totalling EUR 5.5 million (previous year: EUR 4.1 million).  

In addition, momox has entered into a lease agreement in which additional rental space in Germany is still   currently unused. The lease agreement begins in April 2023 and leads to additional payments (including all  options to extend) totalling up to EUR 0.8 million (four comparable items in the previous year: EUR 3.1 million).  

In fiscal year 2022, the expenses for short-term leases amounted to EUR 487 thousand (previous year: EUR 1,224   thousand) and the expenses for leases for low-value assets amounted to EUR 108 thousand (previous year: EUR  76 thousand). No material changes in the portfolio of short-term leases arose in the fiscal year.  

Cash outflows from leases (including payments for short-term leases and leases for low-value assets) comprised   a total of EUR 4,265 thousand in the fiscal year (previous year: EUR 4,104 thousand).  

In the reporting period, there were changes to existing leases due to the above-mentioned variable interest   payments and extension of rental agreements in Germany, which resulted in a revaluation of the rights of use by  EUR 17.8 million or lease liabilities by EUR 17.4 million.  

10.5  

Inventories  

Inventories are composed as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Raw materials, consumables, and supplies	511	354
Finished goods and merchandise	16,386	16,620
Advance payments made	9	0
Total	16,906	16,973

The write-down of the goods to the net realizable value amounts to EUR 7,935 thousand (previous year: EUR   4,994 thousand) and the changes from the previous year were recognized as an expense of EUR 2,941 thousand  in the fiscal year 2022 and are included in the item Cost of materials.  

No write-downs resulted on the two reporting dates in relation to the raw materials, consumables, and supplies   and the payments on account.  

10.6  

Trade receivables  

The trade receivables totaled EUR 4,677 thousand as of December 31, 2022 (previous year: EUR 8,232 thousand)   and resulted essentially from receivables from the online trading platforms on which the Books & Media as well  as Fashion products are sold to the end customers.  

The net inventory of the trade receivables can be presented as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Gross amount of trade receivables	4,764	8,370
Write-downs implemented	-87	-138
Net amount of trade receivables	4,677	8,232

  

The momox Group applies the simplified approach in accordance with IFRS 9 in order to measure the expected   credit losses. The expected default rate amounts here to 2% on an assessment base modified for this calculation  and is based on historical empirical data adjusted by forward-looking expectations. The proportionately low  default rate can be attributed among other things to the terms of payment that are offered as well as the  assignment of receivables as part of a factoring agreement.  

An assessment continues to be made on each reporting date of whether there are objective indications for write-   downs of individual receivables. A Level-3 write-down is made if there are objective indications of a credit default.  This was not the case either as of December 31, 2021 or as of December 31, 2022  

Write-downs on trade receivables totaled EUR 87 thousand as of the reporting date (previous year: EUR   138 thousand). The decline in the write-down is based on the fact that, as of December 31, 2022, the outstanding  receivables were significantly lower than the previous year’s level – while the risk assessment remained the same.  

The trade receivables are essentially not past due (EUR 4,749 thousand; previous year: EUR 8,362 thousand).  

10.7  

Other financial assets  

The non-current financial assets of the momox Group break down as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Deposits	2,726	2,886
Receivables from shareholders	2,147	2,045
Total	4,874	4,931

The decrease is mainly due to the decrease in deposits.  

The receivables from shareholders, which result from the SARs (Stock Appreciation Rights) agreements that   momox Holding SE acquired, but the rights of which it has assigned by contract to the shareholders (see Section  10.11), include interest of EUR 102 thousand (previous year: EUR 97 thousand).  

As of December 31, 2022, the other non-current financial assets totaled EUR 1,118 thousand (previous year:   EUR 1,586 thousand) and included among others receivables from factoring at EUR 306 thousand (previous year:  EUR 465 thousand) and receivables from liquidated damages at EUR 0 thousand (previous year: EUR 840  thousand).  

The other current non-financial assets break down as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Right to receive returned products	949	910
Prepaid expenses	343	268
Value added tax receivables	279	411
Other	24	41
Total	1,594	1,630

  

Cash and cash equivalents of the momox Group include cash on hand, account balances at banks that are   available on call, and other current highly liquid financial assets that have a maximum term of three months at  the time of acquisition.  

Cash and cash equivalents break down as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Cash on hand	5	11
Money in transit	0	1,500
Cash in bank	38,051	25,589
Total	38,056	27,100

10.10 Equity  

The share capital totaled EUR 120,168.00 as of December 31, 2022 (December 31, 2021: EUR 120,168.00). The   share capital of EUR 120,168.00 is divided into 19,288 A-class shares and 100,880 B-class shares. The shares have  a nominal value of EUR 1.00 each and the share capital is fully paid up.  

Class of shares	Number of shares	Nominal amount in EUR
Ordinary shares Class A	19,288	19,288
Preference shares Class B	100,880	100,880
Total	120,168	120,168

The A-class shares are ordinary shares with full voting rights. The B-class shares are preference shares with a   specific preferred return and also full voting rights.  

The A-class shares do not in principle give their holders any right to the distribution of profits, other distributions,   payments as part of a distribution of assets following the dissolution of the company or any other payments from  the company until the holders of the B-class shares have received in full the preferred returns that they are  entitled to.  

The performance in the fiscal year 2022 is presented against the background of the conversion of momox Holding   AG into momox Holding SE by conversion resolution of December 5, 2022 and entry in the commercial register  on December 13, 2022 as follows:  

	Number of shares	Share capital in EUR
As of January 1, 2022	120,168	120,168
Disposals	0	0
Additions	0	0
Issuance of new shares	0	0
Share repurchases	0	0
As of December 31, 2022	120,168	120,168

Capital reserves totaling EUR 61,269 thousand (December 31, 2021: EUR 61,269 thousand) result from shares   contributed by the shareholders of momox SE (formerly momox AG) and other contributions.  

  

The retained profits increased from EUR 12,167 thousand of December 31, 2021 to EUR 13,944 thousand as of   December 31, 2022. A capital adjustment was made in the retained profits in the fiscal year as a result of the  recognition of deferred taxes totaling EUR 203 thousand directly in equity of the change in the tax rate at group  level as part of the calculation of the PPA and other adjustments in the individual financial statements of MOMOX  Polska Sp.z o.o..  

The total comprehensive income of the momox Group amounted to EUR 2,557 thousand for the fiscal year 2022.  

10.11 Share-based payment  

momox SE (formerly momox AG) entered into agreements on stock appreciation rights (SARs) with certain   members of the management between 2013 and 2019. These agreements provided that compensation  payments will be paid in cash to the managers when certain maturity events occur provided the beneficiaries  fulfill the contractually agreed conditions stipulating they serve four or five years.  

In the course of successive business combinations, momox Holding SE (formerly momox Holding AG) bought from   the SAR beneficiaries all or parts (50% in most cases) of their SARs with effect from January 20, 2020 at a price of  EUR 1,924 thousand in total, which remain in force as of the balance sheet date.  

No liability for these SAR agreements was recognized as of December 31, 2022, as the probability that a maturity   event will occur before the SARs lapse in 2032 cannot be assessed.  

Please see Section 11.3 for more information.  

10.12 Provisions  

The development of the provisions can be presented as follows:  

in TEUR	Dec. 31, 2021 Jan. 1, 2022	Utilization / reclassification	Addition / reclassification	Reversal	Interest expense	Dec. 31, 2022
Provisions for administrative, legal and consulting costs	567	-346	0	-16	0	205
Dismantling provisions	432	0	59	0	-11	479
Provisions for marketing and sales	2,438	-2,184	0	0	0	254
Provisions for financial statements and audit	655	-383	656	-131	0	797
Personnel-related provisions	446	-307	391	-152	0	378
Provision for expected losses	0	0	28	0	0	28
Other provisions	2,319	-1,180	1,505	-146	0	2,498
Total	6,857	-4,400	2,638	-444	-11	4,639

  

The provisions developed as follows in the previous year:  

In TEUR	Dec. 31, 2020 Jan. 1, 2021	Utilization	Addition	Reversal	Interest expense	Dec. 31, 2022
Provisions for administrative, legal and consulting costs	2,026	-2,014	555	0	0	567
Dismantling provisions	629	-629	428	0	4	432
Provisions for marketing and sales	236	-236	2,438	0	0	2,438
Provisions for financial statements and audit	801	-632	486	0	0	655
Personnel-related provisions	433	-411	424	0	0	446
Other provisions	2,022	-1,978	2,272	0	3	2,319
Total	6,147	-5,901	6,604	0	7	6,857

The provisions for dismantling obligations concern existing property leases exclusively. The personnel-related   provisions include EUR 17 thousand (previous year: EUR 146 thousand) for pensions for employees of MOMOX  Poland, which are of minor significance for the momox Group, however. The other provisions essentially include  provisions for invoices where the amount and due date is not certain (EUR 2,168 thousand; previous year:  EUR 1,743 thousand), indirect purchasing expenses (EUR 303 thousand; previous year: EUR 549 thousand) and  record-keeping requirements (EUR 27 thousand; previous year: EUR 27 thousand).  

The provisions are composed as follows:  

In TEUR	Dec. 31, 2022		Dec. 31, 2021
	Current	Non-current	Current	Non-current
Other provisions	4,117	43	6,253	172
Dismantling obligations	0	479	0	432
Total	4,117	522	6,253	604

10.13 Trade payables  

Trade receivables are due within one year. As of December 31, 2022, they totaled EUR 10,847 thousand (previous   year: EUR 13,332 thousand) and include among others trade payables that had not yet been invoiced by the  reporting date.  

momox Holding SE (formerly momox Holding AG) issued a green bond for EUR 100 million with a term of five   years on July 10, 2020. This green bond serves primarily to finance the purchase price for the acquisition of shares  by momox Holding SE (formerly momox Holding AG) in momox SE (formerly momox AG). The amount is  furthermore intended to serve the distribution and redemption of capital reserves. The green bond was listed on  the Oslo Stock Exchange on July 8, 2021.  

Transaction costs totaling EUR 3,528 thousand were incurred in 2020 in connection with the green bond, which   are deferred in due consideration of the effective interest method and amortized over the term of the bond.  

The interest on the green bond is variable and linked to the 3-month EURIBOR. In accordance with the interest   rate calculation, the effective interest rate is determined on an ongoing basis based on the volatility of the 3-  month EURIBOR.  

  

10.15 Other financial liabilities  

The other current financial liabilities break down as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Refund liabilities from returns	2,855	2,610
Green bond interest liabilities	1,729	1,424
Other	0	12
Total	4,584	4,046

10.16 Other non-financial liabilities  

The other current non-financial liabilities break down as follows:  

In TEUR	Dec. 31, 2022	Dec. 31, 2021
Contract liabilities	6,677	6,794
Liabilities from wages and salaries	2,643	2,188
Value added tax liabilities	2,129	973
Other	1,019	1,018
Total	12,468	10,973

The “Other” item primarily includes liabilities from payroll and church taxes (EUR 423 thousand; previous year:   EUR 362 thousand) and social security liabilities (EUR 510 thousand; previous year: EUR 382 thousand).  

The contract liabilities of the momox Group include as of December 31, 2022 liabilities from coupons totaling   EUR 6,314 thousand (previous year: EUR 6,679 thousand) and payments received on account totaling EUR 363  thousand (previous year: EUR 115 thousand).  

The development of the contract liabilities is presented in the overview below:  

In TEUR
As of Dec. 31, 2021 / Jan. 1, 2022	6,794	5,569
Addition	4,792	2,871
Sales revenue recognized in the reporting period	-3,745	-1,477
Income from unused gift coupons	-1,164	-169
As of Dec. 31, 2022	6,677	6,794

No sales revenue from performance obligations that were fulfilled in the previous year have been recognized in   the current fiscal year.  

   

11.1 Additional disclosures on financial instruments  

11.1.1 Financial risk management  

The momox Group is exposed to credit risks, liquidity risks, and market risks (interest and currency risks) in the   course of its normal operating activities. The aim of the financial risk management is to minimize the potentially  negative impact on the Group’s financial position so that the ability to repay debts and the financial strength of  the Group will also be maintained in the future. The risks resulting for the momox Group in the course of the  operating activities are therefore constantly monitored and actively managed by the management.  

Credit risk  

The momox Group faces the risk that business partners will be unable to meet their obligations and this will result   in the loss of a financial asset. For this reason, the default risk of financial assets is continually monitored by the  management, which concerns the trade receivables in particular.  

The maximum credit and default risk of financial assets is the same as the amounts recognized in the statement   of financial position. There is furthermore no notable concentration of default risks.  

The default risk relating to receivables is reduced by a factoring agreement. Moreover, terms and conditions of   payment where the customer pays for the goods before they are dispatched are offered in the main. More  information on the development of the write-downs as well as on the maturity structure is provided in Section  10.6.  

Liquidity risk  

Liquidity risk describes the risk that the Group is unable to meet its financial obligations or can meet them only   to a limited extent. The management of the momox Group therefore constantly monitors the risk of a liquidity  bottleneck by means of the liquidity planning. The aim is to maintain a balance between continually covering the  funding requirements and ensuring flexibility by utilizing an overdraft facility where interest is charged at 2.5%  (plus the euro short-term rate starting from December 1, 2022). The credit facility of EUR 6.5 million was  completely unused as of December 31, 2021 and as of December 31, 2022.  

With the exception of the liabilities in connection with the green bond (see section 10.14) and the lease liabilities   (see section 10.4), the Group’s financial liabilities that existed at December 31, 2022 are exclusively short term in  nature, meaning they are due within 12 months.  

The tables below analyze the financial (undiscounted) liabilities of the Group in the relevant maturity ranges based   on their contractual terms.  

 

Contractual maturities of the financial liabilities in EUR thousand	Up to 12 months	Between 1–5 years	more than five years	Total	Carrying amount of liabilities
31.12.2021
Trade payables	13,332	0	0	13,332	13,332
Other current financial liabilities
of which others	4,046	0	0	4,046	4,046
Green bond	0	100,000	0	100,000	97,381
Lease liabilities	3,276	12,688	3,523	19,487	19,075
TOTAL	20,654	112,688	3,523	136,864	133,834

Contractual maturities of the financial liabilities in EUR thousand	Up to 12 months	Between 1–5 years	more than five years	Total	Carrying amount of liabilities
31.12.2022
Trade payables	10,847	0	0	10,847	10,847
Other current financial liabilities
of which others	4,584	0	0	4,584	4,584
Green bond	0	100,000	0	100,000	98,049
Lease liabilities	4,011	15,297	26,543	45,851	37,255
TOTAL	19,442	115,297	26,543	161,282	150,735

Currency risk  

As the momox Group operates internationally, risks arise from receipts and payments in foreign currencies. This   concerns transactions in pound sterling, US dollars, Canadian dollars, and Polish zloty in particular. Currency risks  from the operating business have been classed as not material in the Group up to now, as all of the purchasing  and the majority of the sales are settled in euros. In the period under review, the proportion of the sales revenue  not generated in euros amounted to less than 5% of total revenue.  

Interest rate risk  

Within the momox Group, only the green bond that was issued on July 10, 2020 for EUR 100 million with a term   of five years has a floating interest rate.  

Hedging against potential interest rate changes was not undertaken in the fiscal year. The background to this is   the agreed minimum interest rate, which it is not possible to fall below. An increase in interest expenses has to  be recorded only when the reference interest rate (EURIBOR) is positive. Because of the settlement system of our  bond, this rate rose above 0 percentage points only from October 10, 2022. An analysis of the interest rate  sensitivity shows that a 0.5 percentage point increase in the variable interest rate would have led to higher  interest payments of EUR 115 thousand. A 0.5 percentage point decline in the interest rates would accordingly  have reduced the interest payments by EUR 115 thousand. This accounts for 1.74% of the interest expenses for  the bond, which is why the impacts for the fiscal year have been regarded as immaterial. Future potential interest  rate risks are countered by acontinual analysis of financial hedging possibilities.  11.1.2 Additional information on financial instruments  

Financial assets and liabilities are classified and recognized on the acquisition date in accordance with the   categories in IFRS 9. A financial instrument is recognized for the first time at fair value, including any transaction  costs, in principle.  

Because of the short term of cash and cash equivalents, trade receivables and trade payables, and the other   current financial assets and liabilities, it is assumed that the relevant fair value is approximately equivalent to the  carrying amount.  

The relevant fair value is also approximately equivalent to the carrying amount in the case of the non-current   financial assets, lease liabilities, and the green bond.  

The table below shows the reconciliation of the balance sheet items and the measurement categories in   accordance with IFRS 9:  

in TEUR	Measurement category	Carrying amount		Fair value
		31.12.2022	31.12.2021	31.12.2022	31.12.2021
Financial assets
Cash and cash equivalents	AC	38,056	27,100	38,056	27,100
Trade receivables	AC	4,677	8,232	4,677	8,232
Other current financial assets
of which receivables from factoring	FVTPL	306	465	306	465
of which others	AC	812	1,121	812	1,121
Non-current financial assets	AC	4,874	4,931	4,874	4,931
Financial liabilities
Trade payables	AC	10,847	13,332	10,847	13,332
Other current financial liabilities
of which call/put option	AC	0	0	0	0
of which shareholder loans	AC	0	0	0	0
of which others	AC	4,584	4,046	4,584	4,046
Green bond	AC	98,049	97,381	98,049	97,381
Other non-current financial liabilities	AC	0	0	0	0
Lease liabilities	N/A	37,255	19,075	37,255	19,075

AC: amortized cost, FVTPL: fair value through profit or loss  

Receivables from factoring are measured both in the initial and in the follow-up measurement at fair value   through profit or loss (FVTPL) and allocated to Level 1 within the fair value hierarchy. In principle, the fair value  of the receivables is equivalent to the carrying amount or the value of the transaction, which is why no significant  changes in value are recognized in the net income for the period.  

The net gains / losses from financial instruments are shown in the table below:  

In TEUR	2022	2021
Impairments of financial assets (AC)	-51	-47
Exchange rate effects on financial assets (AC)	1	-4
Net interest income from financial assets (AC)	102	97
Exchange rate effects on financial liabilities (AC)	-112	-19
Net interest income from financial liabilities (AC)	-7,649	-7,103
of which from effective interest method	-1,025	-766
Fair value adjustment to financial assets (FVTPL)	0	0
Total	-7,597	-7,053

   

11.2 Additional disclosures on the cash flow statement  

The financial liabilities developed as follows:  

			Non-cash movements
In TEUR	Dec. 31, 2020	Cash movements			Dec. 31, 2021
			New leases	Interest effects
Green bond	96,756	0	0	625	97,381
Shareholder loans	1	-1	0	0	0
Lease liabilities	16,829	-2,815	4,920	141	19,075
Total	113,586	-2,816	4,920	766	116,456

			Non-cash movements
In TEUR	Dec. 31, 2021	Cash movements			Dec. 31, 2022
			New leases	Interest effects
Green bond	97,381	0	0	668	98,049
Shareholder loans	0	0	0	0	0
Lease liabilities	19,075	-3,670	21,493	357	37,255
Total	116,456	-3,670	21,493	1,025	135,304

11.4 Related party disclosures  

Companies and persons related to momox Holding SE (formerly momox Holding AG) are identified in accordance   with IAS 24 and include the majority shareholders, Verdane Capital X (E) AB and Verdane Capital X (D) AB, as well  as the members of the management, the Management Board, the Supervisory Board, the Audit Committee, and  other key employees.  

As of December 31, 2022, there were receivables from the shareholders of momox Holding SE totaling EUR 2,147   thousand (previous year: EUR 2,045 thousand) resulting from the acquisition of SARs by eligible employees.  Verdane will reimburse momox Holding SE these expenses and pay 5% interest until the receivables are settled  (see Section 10.11). In this context, interest income of EUR 102 thousand (previous year: EUR 97 thousand) was  recognized in the fiscal year.  

Stromboli ManCo GmbH & Co. KG (MEP KG), which was founded on May 12, 2020, enables the managing   directors and selected senior executives to acquire limited partner’s shares in MEP KG through a management  equity program and thus to receive an indirect equity interest in momox Holding SE. All eligible members of the  management board and selected senior executives have acquired limited partner’s shares in the company and  thus obtained an indirect equity interest in momox Holding SE.  

Expenses totaling EUR 1,818 thousand (previous year: EUR 1,966 thousand) were recognized for the management   and members of the Management Board as well as other key employees in fiscal year 2022, while expenses  totaling EUR 184 thousand (previous year: EUR 133 thousand) were recognized for the members of the  Supervisory Board. Of this figure, EUR 0 thousand thousand (previous year: EUR 0 thousand) relates to short-term  benefits and EUR 0 thousand (previous year: EUR 0 thousand) relates to share-based payments.  

The management within the momox Group comprised the following in fiscal year 2022:  

•

Christian von Hohnhorst, businessman, member of the Management Board of momox SE and momox   Holding SE, managing director of MOMOX Polska Sp.z o.o. and also of momox Services GmbH (up to  January 14, 2022, from July 4, 2022)  

•

Heiner Kroke, businessman, member of the Management Board of momox SE and momox Holding SE,   managing director of MOMOX Polska Sp.z o.o. and also of momox Services GmbH (up to January 14,  2022)  

•

Peter Buse, businessman, managing director of momox Services GmbH (up to August 2, 2022)  

•

Tim Kellermann, businessman, managing director of momox Services GmbH (entry commercial register   January 19, 2023)  

In the course of the change of legal form of momox Holding AG to momox Holding SE and also of momox AG to   momox SE, the Management Board was reappointed and then confirmed at the constituent meeting of the  Supervisory Board on December 5, 2022.  

The managing directors performed their work as their main occupations.  

In fiscal year 2022, the Supervisory Board of momox Holding AG and momox AG and later of momox Holding SE   momox SE and momox SE following its constitution as such on December 5, 2022 comprised the following  members:  

•

Dr. Thomas Tochtermann, consultant, chair of the Supervisory Board  

•

Staffan Mörndal, professional investment consultant, deputy chair of the Supervisory Board  

•

Morwenna White, CEO of Hyperwild Associates Consulting, member of the Supervisory Board  

•

Eric Daniel Bowman, CTO at Tom Tom, member of the Supervisory Board  

•

Victor del Pozo, COO of the Veepee Group, member of the Supervisory Board (from January 14, 2022)  

•

Ursula Radeke-Pietsch, Global Senior Vice President Finance at Siemens AG, member of the Supervisory   Board (from March 16, 2022)  

In the course of the conversion into a European Company, the Audit Committee of momox Holding SE was   established by resolution of the Supervisory Board of momox Holding SE with the same composition as the Audit  Committee of momox Holding AG. The Audit Committee for the fiscal year 2022 is thus composed as follows:  

•

Ursula Radeke-Pietsch, Global Senior Vice President Finance at Siemens AG, member of the Audit   Committee (from March 20, 2022), chair of the Audit Committee (from March 22, 2022)  

•

Staffan Mörndal, professional investment consultant, deputy chair of the Audit Committee  

•

Dr. Thomas Tochtermann, consultant, chair of the Audit Committee (up to March 22, 2022), member of   the Audit Committee