Alligo AB (publ)

Good day and thank you for standing by. Welcome to the ILLEGO Interloom Report Q2 2025 conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one and one again. Alternatively, you may also submit your questions on the webcast at any time by typing them in the question box and click Submit. Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Mr. Klein Ullenvik, CEO. Please go ahead, sir.

Thank you, Raz. Welcome to Allegro Q2 Report 2025. Presenters, as always, will be our CFO, Irene Wissam Holbelander, and myself. We usually have a slide with us too on it, but it has gone missing. We will try to focus only on the highlights. It's a report-heavy day today, and we try to have different themes to be as transparent as possible and to educate you guys on what we are doing. Last time we talked about re-care and the efforts we're doing in Finland and this time we will talk a little bit about our platform and as you can see the CEO section of the report and the headline is that we one final time will talk about our integration that we now can leave that finally behind us. We will not use that as any explanation going forward for any shortcomings. that is done and it's also a signal to ourselves and to our organization that we leave the integration process behind us and focus fully on going forward. So looking at the the map 241 shops it looks like we are heading backwards in own brands but as you know that is due to the fact that we do acquisitions and they mathematically of course have zero percent of brands when they are included. Sweden dependent, that's why we are suffering a bit when the market is slow in Sweden, both in volume and in EBITDA. So Sweden is our super profitable country, and that's why we are suffering a bit when the market is not really with us. One busy slide, but just to take you through a few highlights, you know, we have the two concept brands, Viroland Tools, but we perhaps not talk so much about that. We are a true Nordic I don't know of any actually, but there probably are some. But we have a true Nordic organization. I will show you a slide later on where all the functions are Nordic functions and the countries are focusing on sales. So that's a bit of a twist in our setup. The non-integrated businesses are becoming an increasingly big part of our group. Now 20% of sales. We have our lovely 13 product media companies. You saw two add-on acquisitions done recently. We have our six welding businesses. The battery lagers acquisitions completed this year. And then we have some other companies, but not other sounds diminishing, but it's super well run businesses. And they did two HTP and RTP in Finland that we acquired a year ago. But looking at this slide, we can also reflect that when we say that something is market-driven or not market-driven, we have so many contacts facing the market from different daughter companies or the integrated business. And when we see similarities in the development, for example, in the welding, six welding companies, as we do in the integrated business, then it's fair to assume that it's market that is developing in that way. That's the extra good part of having these businesses. It gives us a reality check to what's market-driven or potentially not market-driven development-wise. Acquisition, yes. We have done a couple of acquisitions, battery logging being the biggest one, and two, actually, add-on businesses, one 13, one 14 million business. But it's add-on business to already acquired product media businesses. Highlights, market situation, it's challenging, but we dare to say it's stable. We had times during the last two years when it's been steadily downwards, but we feel that it's much more stable now than it has been. We've signaled before that what we hear is more positive, but the customers are still very cautious. We as a management team focus on what we can focus on, driving sales to the greatest extent. We are very afraid of being caught being too late. So we are always early on adapting with cost. Irene will show a slide later on that I think proves that we are fairly good at that. And still we haven't seen the big effects of the plan Z that we launched Q1. We are continuing to do acquisitions. We are constantly working with inventory levels, launching new private labels, own brands, and trying to find the right balance between external strong brands. That's the beauty of our offer, the good mix between external brands and our own brands. And to do price adjustments and in all openness, we suffered a bit in Norway when we launched the Jeeves system in February this year. That's exactly when you normally do your price adjustments in our countries. So Norway has a little bit of a backlog catching up, because there are always disturbances when you implement a new ERP system. But they are progressing nicely. Delivery capacity is good throughout the group. It's best to be having a little bit of a backlog in incoming goods at the moment. But besides that, everything is good. And the macroeconomic, it is what it is. So Q2 in brief, revenue grew by 1.6%. Oil and gas, Norway, being stable. Organically, unfortunately, 4.3% down. But if you adjust for two things, defense-related orders, which were very high Q2 last year, and also Northvolt for obvious reasons, then Irene, if I say the right number now, is at 1.3%.

It's 1.3.