Autostore Hldgs Reg S

Good morning and welcome to Autostore's third quarter 2025 presentation. My name is Iva Florskjell and I'm the investor relations officer at Autostore. Our CEO Mats Havlandvikse and our CFO Paul Harrison are standing ready to talk to you about this quarter and subsequently answer your questions. I'll be moderating today's session. As usual, we would like to remind you of our disclaimer with regards to forward-looking statements. It can be read here at your own convenience. Now, moving on to our agenda, Mats will begin with an overview of our operational performance and strategic progress, including some exciting insights into this fall's product announcement. Paul will then present the financial results in detail. will follow with a live Q&A session. And you can submit written questions via the webcast player or raise your hand in the Microsoft Teams to ask your questions directly. The link to the Teams meeting is available on our website and the invitation published about a week ago. After the Q&A, Mats will round off with some final remarks. And as a reminder, all financial figures are stated in US dollars. So with that, let's get started. Mats, over to you.

Thank you, Hiva, and good morning. When we met in August, we noted a more stable market environment compared to the peak uncertainty earlier this year. That stability was maintained into Q3, where the positive backlog conversion trend continued. And what we're experiencing here is a market that is still impacted by the global uncertainties, but where customers are making more progress with their plans. In this market, our strategy of becoming closer to customers is yielding results. More than half of revenues was generated from existing customers also this quarter. At the same time, we signed up around 50 new customers, further strengthening the land and expand opportunity. Europe continues to be a stronghold for us, representing more than 70% of revenues in the quarter, but we also see positive momentum in the US, which is expected to be an important growth market for us over time. Moving on to the financials, Q3 revenue was 139 million, up 4% sequentially, showing steady development from Q2, but still down 4% year over year. Order intake was 152 million, which is stable sequentially and up 6% year over year. Looking at profitability, gross margin was 73%, which is consistent with levels that we've seen over the past year, whilst our adjusted EBITDA margin came in at 47%, again in line with historical levels. And Paul will provide more details on the financials later. But now let me touch on some exciting key developments in the business this quarter. we had our fall product announcement where we announced seven new products and features designed to improve our overall value proposition, make deployments of the systems easier, and expanding on our capabilities. And these were all built in close collaboration with customers to solve real operational challenges and open up new use cases. And I'll come back to the highlights in a moment. Also, building on our successful experience with our grocery customer Rolik, we have signed VLOC as a partner. V-Log, which is part of the Rolik Group, is a new AI-driven global solutions provider for grocery. Together, we're able to offer an end-to-end solution for the grocery market, which is one of many end markets where we have an attractive value proposition. This familiar slide illustrates the strong foundations of our business and why we're uniquely positioned to lead. It highlights our value proposition, our competitive strengths, and financial profile. To date, we've delivered around 1,850 systems with 82,500 robots across 63 countries, serving 1,250 unique customers. Within cubic storage, no other player has an install base of this scale. It's a clear advantage that just reinforces the strength of our solution and provides us with a substantial platform for our land and expand strategy. And this is a site that you're also familiar with. And here are the names of a small selection of our over 1,250 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's also worth noting that Europe remains our largest region, representing over two thirds of our business. And over the past few quarters, B2B segments like industrials and healthcare have remained resilient. We've also seen strength in 3PL, and leading indicators are improving across e-commerce and retail. And now in October, we had our fall product announcement, introducing seven new products and features. These products have been very well received by our customers, and there's particularly two of the products that I would like to call out. First is AutoCase, which unlocks the combination of case and piece handling in one automated flow. This opens up a new market and new use cases that we couldn't previously offer to our customers. The second is FlexBins, and this enables mixed bin sizes within a single grid, which then increases storage density and offer more flexibility to our customers. And this customer-led innovation shows good progress on our overall product strategy. We continue to improve on our core, which is further strengthening our leading position. And we're also expanding our capabilities and solving for new use cases, which then expands our overall market opportunity. And I always like to end with a customer story. And this time, it's an existing customer who started with a high throughput system a few years ago. Since then, Alsace added several extensions, and recently, they just expanded their site again. Next year, they will install their second site, which is a great example of our land and expense strategy and how repeat purchases typically follow once the value is proven. So before Paul takes us through the financials of this quarter, please have a look at this.

ALSA was established in 1994. We are the largest online retail in Czech Republic and Slovakia. What makes us unique is the market-leading service where you can order by midnight and you will get it next day morning. Behind me you can see the AutoStore system which contains 300,000 bins and 580 robots operating right now. a combination of speed, accuracy, and density. In the autostore, there is sometimes more than 150,000 unique SKUs. There is Cartoon Erectors and Cartoon Closers, about five kilometers of conveyors, robotic sorting system, interlock sorting system.