Autostore Hldgs Reg S

My name is Hiva Florskjær and I'm the investor relations officer at Autostor. Our CEO Mats Havland-Viksen and our CFO Paul Harrison are standing ready to talk to you about this quarter and subsequently answer any questions you have. I'll be moderating today's session. As usual, we would like to remind you of the disclaimer in regards to forward-looking statements. It can be read here at your own convenience. Moving on to our agenda. Mats will begin with an overview of the operational performance and strategic progress. Paul will then follow up with presenting the financial results in more detail. We'll follow up with a live Q&A session and you can submit your written questions in the webcast player or raise your hand in the Microsoft Teams to ask questions directly. The link to the Microsoft Teams meeting is available on our website and in the invitation that we published a couple of weeks ago. After the Q&A, Matt will round off with some final remarks. And as a reminder, all our figures are stated in US dollars. So let's get started. Matt, over to you.

Thank you, Hiva, and good morning. When I last spoke with you, we were at the peak of market uncertainty. Q1 had been volatile, and that uncertainty also continued into Q2. But as the quarter progressed, we were able to identify and utilise some pockets of resilience. First, we doubled down on the opportunity that lies within our customer base, which accounted for around 60% of our revenues in the quarter. Secondly, Europe continued to be strong, representing 70% of revenue. Thirdly, we also see early positive signs with regards to demand in North America, reflected in order intake, but not fully in revenue. As we've talked about before, we strive to be closer to deals and customers, and the development in second quarter shows that this is producing positive results. Q2 revenue was 134 million, which is up 56% sequentially, marking a recovery from the unusually soft Q1. However, compared to the same period last year, revenue was down 13%. And this shows that caution and hesitation still exist, which is fully understandable given the uncertain and volatile market backdrop. But in this market and with the actions that we've taken, order intake was 150 million in the quarter. This represents a 6% increase both sequentially and year over year. And adjusting for the currency tailwinds, the development is roughly flat. What we're seeing so far in the third quarter are similar market dynamics in general, but I'm happy to see how we're able to stay even closer to our customers and the opportunities that are out there. So moving to profitability, our gross margin was 69%. And included in this number is the $8.5 million write-down tied to the B1 robot. If we exclude for that, the gross margin was 75%. For adjusted EBITDA margin, we report 48%, which is back to our historical levels. And Paul will come more back to this later. So if we move on to key developments in our business, we'll see that during the quarter, we signed another contract with our auto store as a service model, and this time with the European 3PL. And while still early days, this model is coming up in more and more conversations. And as we've talked about before, it's a model that resonates particularly well in the 3PL market. So far in 2025, we've shipped products to secure 34 million future as a service revenue. Looking ahead, we're preparing for our fall product release, which will include both software and hardware updates, and it will be an exciting step forward, so stay tuned for more details soon. So looking at it, I think these results reflect not only our operational execution, but also us making progress on our strategy, which I'll now walk you through. And our foundation is strong. We've built this platform with a large customer base across a wide variety of end markets and system types with a high degree of repeat purchases. Our technology is leading and our solution is highly competitive with a strong ROI. And with changing market dynamics, we have taken action and we've realized $10 million of annualized cost savings and we've reallocated investments towards high growth initiatives. Looking further out, we're focused around three themes. Firstly, we have a product strategy that sees us continuing to optimize and expand our core, increasing our addressable market for adding new capabilities, and further developing the AutoStore software platform. Against this, we're making good progress. In under 12 months, we've launched 10 new products and features, and we can now do thousands of robots in a site versus hundreds a few years ago. And we're also seeing strong adoption of our essential software package, which offers the complete suite of software with smart routing, real-time analytics, and intelligent reporting. And with another major release planned in October, we're continuing to improve our offering and increase our market opportunity. Secondly, under our new commercial strategy, we have sharpened our go-to-market focus and reallocated resources towards high potential areas. And this shift is already paying off. Since our capital markets day in September of 24, we've added around 100 new logos, including several strategic accounts with long-term potential, fueling our land and expand strategy. At the same time, deeper engagement in cross-app install base is supporting higher account penetration and reinforcing a customer-first approach, which is leading now to 60% of orders this quarter coming from existing customers. And then enabled by these two growth engines, we're broadening our recurring revenue streams from both software, as well as these new flexible solutions, such as PO, and more recently, Autosource as a Service. And we see these solutions appealing to customers we would otherwise not land, and they also create more visibility and stronger customer intimacy. But now let's take a step back and this familiar slide is a good visualisation of that strong foundation that I just talked about. And it highlights our strong value proposition to customers, our long-term competitive strength and our superior financial profile. It summarises the strength of our platform and why we're so uniquely positioned to lead. We have now delivered 1,750 systems with 79,500 robots in 60 countries. We have a total of 1,200 unique customers, and within the cubic storage space, we're the only player with such a significant install base, providing us with great advantages. And not only does this speak to the strength of our solutions, it also represents a substantial base for our land and expand strategy. And this is a slide that you're also familiar with. And here we can see a small selection of our over 1,200 customers. And as you can see, we have a broad customer portfolio across a diverse set of end markets. Around half of our revenues come from existing customers, and this growing customer base represents a massive opportunity. It is also worth noting that Europe remains our largest region, representing over two thirds of our business. And then during the last few quarters, we've seen B2B segments like industrials and healthcare stay strong, but we've also seen leading indicators improve across e-com and retail segments. And I always like to give the last words to our customers. You've heard me talk about evolving how we work with strategic accounts and 3PLs. And today we're highlighting Rhenus, a global logistics service provider operating in over 70 countries with 1,330 sites. And Rhenus runs a high throughput site with AutoStore in Germany. And as you will hear, AutoStore is a key part of their future strategy, thanks to the flexible and standardised approach we can offer. So, before Paul takes us through the financials of this quarter, please have a look at this.

Renus is a global logistics service provider and a family-owned company. We operate in more than 70 countries, 1,330 sites. We have 41,000 employees and achieved last year 8.2 billion of turnover.