BHG Group AB (publ)

And good morning, everyone. Moving to slide two, please. We further strengthened our position, growing considerably faster than the market, and so continuing to gain market share during the quarter. Our model, combining organic initiatives with M&A and unlocking synergies, is a strength in all markets, and perhaps especially so in more challenging market conditions. Slide three, please. I'll start this morning's presentation by reviewing the Q1 highlights and providing a business update Jesper will then cover the financial section before I conclude and we launch into the Q&A session. And slide four, please. On to slide five for the Q1 highlights. Our markets have stabilized on a new and higher level than before the outbreak of the pandemic. Furthermore, our focus on price leadership throughout our portfolio, from the value to the premium range, puts us in good stead, as consumers' disposable incomes are likely to be under pressure for some time to come, and post-pandemic service consumption has normalized. In a temporarily contracting overall market, and despite tough comparative figures, net sales in the quarter reached 3.1 billion SEC, up 21%, corresponding to perform organic growth of 3%, and organic growth of just under 1%. Adjusted EBIT amounted to 134 million, corresponding to an adjusted EBIT margin of 4.3%, a delivery which should be viewed in light of a complicated supply situation and a temporarily weaker market in which consumer prices do not yet fully reflect cost increases. Nevertheless, profitability improved gradually during the quarter as a result of the measures we took to respond to the complications. Cash flow from operating activities at 122 million was unusually strong for the first quarter as a result of improvements to working capital. Importantly, our product availability is good. We've secured the inventory we need to counteract the risks of continued supply chain disruptions as we've now entered the important outdoor season. Our performance in the quarter, as well as over the longer term, provides confirmation that we continue strengthening our competitive position and gaining market share. More on which shortly. Slide six, please. Zooming in on organic and perform organic growth, we did well in the quarter given our high comparative figures and the decline in the overall market. Note that we grew organically by 37% in the corresponding quarter last year. Against this base, organic growth amounted to 1% and like for like on the pro forma basis, our units grew by 3%. Slide 7, please. Taking a broader perspective on growth. To the left, the group's net sales have increased by 155% over the past three years, a period in which pro forma organic growth amounted to 22% per annum. Our three-year pure organic CAGR, i.e. fully normalizing for the pandemic, stands at 15%. Turning to the middle of the slide, the group's share of net sales from outside of the Nordics has increased by 11 percentage points since early 2019, and Germany cemented its position as our third largest geography in the quarter. And over to the right, our growth in the quarter, just as our longer-term growth trajectory, confirms that we continue to strengthen our position. The total home improvement market is larger than in pre-pandemic times, although it did contract somewhat in the quarter from its pandemic peak of last year. However, the growth trajectory of our underlying markets remains intact. Slide eight, please, for a quick reminder on our total addressable market opportunity. Although pandemic effects have temporarily made year-over-year comparisons more difficult, the underlying pre-pandemic direction remains intact, if not actually accentuated, because of the pandemic's lasting impact on consumers' focus on their homes. We estimate the total Nordic market offline and online to be worth some 300 billion SEK per annum, a large market indeed, however, eclipsed by the orders of magnitude larger European one. This is the backdrop against which we revised our medium-term financial targets last year, including that we're going for 20 billion SEK in net sales on the next leg of our journey. A temporarily weaker market offers a leader like BHG opportunities to further extend our lead, including by continuing our still nascent foray into mainland Europe. Slide 9, please. Moving to the business update. Slide 10, please. Our recipe combines organic initiatives and M&A with the synergy possibilities created between the two. The organic strategy remains focused on our four cornerstones of assortment, scale and own brands, an unrivaled digital experience and supporting infrastructure. In addition to benefiting from the secular trend of rising online penetration, we keep adding product categories and we keep adding geographies. In the quarter, we continue to invest in our technology platform, both to further improve our ability to effortlessly maximize the breadth of our assortment through all our sales channels and to drive customer centricity. We also continued simplifying our tick footprint by leveraging the Big Hema setup for additional group units. Further, customer satisfaction continued on its path to higher levels, and we took steps towards consolidating warehousing for key suppliers and also finalized the consolidation of a majority of our own DIY brands. Turning to the middle section of the slide, we're also further industrializing our approach to M&A, We've got the organizational capabilities, we have the proven track record and the deal flow, and our markets are still fragmented. In the quarter, we evaluated a large number of targets, we completed the bolt-on acquisition of Hemi, and we initiated an in-depth mapping of the German M&A landscape, which will be completed shortly. And over to the right, we continue refining our post-merger integration playbook. In the quarter, we strengthened our integration team further and gathered it under our program management office. Our PMO organization works closely with our M&A organization, even before an acquisition is completed, in order to ensure a successful integration of the acquired operations. And we took decisive steps to fully integrate HEMI into our white goods unit, Vitox Pelton. Moving to slide 11, please. Deep diving into M&A and integration, a brief update on our premium home furnishings and furniture platform. Nordic Nest has now been part of BHG for five quarters and continues to develop well. The acquisition of the Nordic Nest platform in turn unlocked the bolt-on opportunity of Svenson's, which was acquired in late March of last year. The acquisition of Svenson's strengthened Nordic Nest's position as a destination with a complete premium range for a Scandinavian home. equal parts of the success of nordic nest group comes from a relentless focus on the customer experience as well as ensuring scalable and efficient operating model the full integration of friend zones is in its final stage of completion and for the premium platform as a whole key next steps include one driving further profitable growth including through geographic expansion NordicNest today delivers to a host of geographies around the world, with Germany its second largest. The past quarter saw the launch of dedicated Polish and Japanese language web shops, and further geographic expansion efforts are underway. Two, unlocking additional efficiencies, including through consolidating the Svensson's warehouse into the NordicNest one to enable extensive assortment sharing and automating the NordicNest warehouse to provide for an even more scalable delivery apparatus. Turning to slide 12 for an update on ESG. The process of setting clear ESG targets for the group began in earnest last year. As a starting point, we used our own materiality analysis, pinpointing the ESG areas in which we could have the greatest impact, as well as the UN Sustainable Development Goals. By deconstructing our business model and matching this against the materiality on the UN SDGs, we arrived at a tightly defined set of targets. These fall under the broad areas of how we can maximize our climate impact, how we ensure that our supply and distribution chains are sustainable, and finally, how we best ensure that our financial performance and profitable growth is truly sustainable, meaning including from a societal point of view. We now have ambitious yardsticks in place, both relatively near-term ones out to 2025 and somewhat longer-term ones out to 2030. We have included a selection of targets in the far right-hand column on this slide, and they include CO2 reductions and more actively promoting the most sustainable parts of our product offering, ensuring that we have the processes in place to work with our sourcing and logistics partners so that we can help push and develop our partners in a more sustainable direction, and securing a sound basis for driving profitable and cash-generating growth, including by being best-in-class in terms of data protection and consumer privacy. Turning to key customer metrics, slide 13, please. Traffic generation conditions resembled what we saw in the second half of last year and were more challenging than in the preceding period. Despite this, and despite meeting the demand peaks from the first year of the pandemic, we maintained our active customer base. As you can see to the left on this slide, our active customer base is 88% higher than where it stood after the first quarter of 2020, a time not yet significantly affected by the pandemic. On the top right-hand side, you can see that our key customer-related metrics remain healthy with both orders per active customer and repeat orders somewhat higher than last year and a healthy marketing ROI, ensuring a continued sound first-order profitability. Investments into gaining further insights from customer-related data across the group continue. We have now launched our customer data platform in Finland, and three of our key Swedish businesses are slated for launches during the year. More generally, driving BHG towards a higher level of customer centricity remains a key focus area for us. And in addition to investing in technology to optimize our marketing and sales approaches, we continue to make progress throughout the group in terms of customer satisfaction levels. Slide 14, please, for further flavor on our customer centricity and customer data platform investment. Our customer data platform mission statement is to put the customer first through personalized and data-driven communication, and so making our key brands the preferred customer choice, delivering cross-brand experiences and added value beyond price and assortment. Our investments are allowing us to invite customers to intelligent conversations, creating trust and a more personalized experience. They enable us to communicate proactively on the back of data insights, creating relevance across the whole customer journey. They will make our key brands the go-to place, creating brand loyalty. And through these investments, we're creating cross-brand customer journeys between our brands by leveraging data and insights. So turning to slide 15 for a snapshot of BHG today. So this is BHG today at a glance. On the left-hand side, our CAGR since 2014 exceeds 40%. In this period, EBIT has gone by more than 100% per annum. Our EBIT margin on an LTM basis stands at 5.8% and is generated by our over 100 customer-facing web properties. And now, moving over to the right-hand side, these web shops have been visited over 400 million times in the past 12 months. generating north of 5 million orders from customers in 24 countries. And finally, our leading product portfolio comprises some 1.7 million SKUs. Slide 16, please. Handing it over to Jesper, who will walk us through the financial update. Slide 17, please.

Thank you, Adam. The first quarter of the year was characterized by growth, strong cash regeneration, and gradually improved, while still unsatisfactory profitability. Net sales increased 21% to reach 3.1 billion SEK. Pro-form organic growth reached 3%. And organic growth reached 0.6%. Organic growth for the group was impacted by high comparative figures and an overall market contracted during the quarter. Adjusted EBIT amounted to 134 million SEK. corresponding to an EBIT margin of 4.3%. The EBIT margin improved sequentially during the quarter as a result of the measures that were continually taken to respond to the complicated market situation. I will get back to the EBIT margin compared to last year in a while. Slide 18 and the segment view. Both our segments grew in the quarter, despite the overall market declining. Net sales in the due-to-sale segment grew by 20%, to reach 1.7 billion SEK, while the whole furnishings segment grew by 22.8%, and net sales amounted to 1.5 billion SEK. Adjusted EBIT amounted to 66 million SEK in the due-to-sale segment, corresponding to an EBIT margin of 4.0%, and to 80 million SEK in the home furnishing segment, corresponding to an EBIT margin of 5.5%. Price increases completely compensated for high shipping and inventory costs in the home furnishing segment, while that was not the case within the do-it-yourself segment. However, The price scenario in the do-it-yourself market improved gradually during the quarter, a development that we believe will continue as a consequence of higher cost levels. Let's now turn to slide 19 and a closer look at our EBIT margin compared to last year. Comparing our EBIT margin in the quarter to last year, we can conclude that the Q1 2021 EBIT margin of 7.2% is a tough comparison as it was favorable affected by COVID-related market factors. As the last few quarters, the profitability this quarter was impacted by supply-side disruptions, and despite significant price rises for large parts of the rain, the EBIT margin was negatively impacted by higher shipping, product, fulfillment, and traffic generation costs. Fulfillment costs are expected to decrease in the beginning of the second half of the year. The increase in organizational costs is partly explained by the date on which AH Trading was consolidated, as the company is focused on outdoor furniture and therefore highly seasonal, and partly by continued long-term investments to drive customer centricity as well as a higher share of own brands. Finally, increase in depreciation and amortization was primarily driven by continued tech investments. All in all, our EBIT margin amounted to 4.3% in the first quarter. Let us turn to cash flow, slide 20, please. Cash flow from operating activities amounted to 122 million SEK, mainly driven by the group's EBITDA, but also thanks to improved working capital. The right-hand graph showing the development in liquidity walks us through the starting period position of 274 million SEK, adding the cash flow from operations, deducting the impact of investing activities, the majority of which is M&A related, and finally the financing activities, which are primarily related to the utilization of our revolving credit facility but also include amortization of leasing liabilities bringing us to the period and 504 million sec of liquidity at hand slide 21 please The group's net debt amounted to 2.3 billion SEK at the end of the quarter, and net debt in relation to LTM-adjusted EBITDA ended at 2.6 times, just outside the medium-term financial target range. Our possibility to restore leverage within our target range are good, given the fact that our inventory position is fully secured for the outdoor season and the seasonally high business volumes we typically see in the current and coming quarters. Both speak to healthy near-term cash generation prospects. On top of our liquidity at hand, we had unutilized credit facilities at the end of the quarter of 500 million SEK. Handing it back over to you, Adam, to summarize and conclude.

Thank you, Jesper. Turning to slide 23, please. As we've reviewed, our trajectory from pre-pandemic times to today has been strong. Although the environment in which we currently operate is complex, we continue to advance our position. Furthermore, our size and approach of combining organic initiatives with acquisitions and leveraging synergies provides us with a major advantage in prevailing markets. We don't hedge currencies. However, our ability to dynamically change pricing frequently and a high degree of natural currency matching as a result of our geographic expansion leave us less exposed to currency fluctuations than in the past. Our inventory is well supplied as we've now entered the outdoor season with products procured at lower costs than those prevailing in the market today. Thanks to our focus on price leadership and the breadth of our range, we can always target our customers with relevant offers, We also have a lower fixed cost base than many of our competitors. Finally, thanks to our ability to continuously consolidate our markets through acquisitions, we can continue to strengthen our business under all market conditions. Turning to slide 24 to summarize and to conclude. So summarizing the quarter. On the back of combining organic initiatives with M&A, our growth journey continued, and LTM net sales amounts to 13.2 billion SECs. While facing tough comparative figures, we continued to strengthen our Nordic position and we took further steps on the European continent. Supply disruptions and demand complications were similar to what we saw in the second half of 2021. Although the environment will continue to be complicated in the short run, we see that our mitigating actions are having desired effects and believe that peak complications are behind us. The host of organic initiatives, which sort under the headings assortment, delivery, and data slash automation, are in advanced motion. 2021 was a record M&A year for us. We're currently focused on integrating the acquired businesses and stand ready to act as new relevant opportunities at attractive deal terms materialize. We updated our financial targets last year, and we're progressing well towards reaching these, with LTM pro forma sales now exceeding 14 billion SEC. And finally, we continue on our quest to create the undisputed European online home improvement platform. Moving to slide 25, this concludes our presentation. Operator, we're now ready to take questions.