BHG Group AB (publ)

Thank you all for joining, and can you please take me to slide two? My name is Gustav Vorn, and I'm the CEO of BSG since November last year. I'm here together with Jesper Flemme, our CFO, to do a short presentation of the Q4 report and do our very best to also answer your questions. Please take me to slide three. Today's agenda, in short, we will first take you to the financial highlights of the quarter, and then a few words about the market, Then we will do an update on the actions we are taking to act upon the challenging market environment. Then Jesper will do a financial update, and I will then, in the end, do my very best to summarize. And we will both be available for the Q&A. Slide five, please. Short about the financial highlights. Q4 was another tough quarter. Sales came in at 3.3 billion, a decline of 5.1 percentage points in a weak market. We see that as decent considering the market circumstances, and we estimate that we still did better than the overall market and that we continued to take market share. Both of our segments, do-it-yourself and home furnishing, had a similar development with a decline of about 5% in the last quarter. Profitability was weak in the quarter. Jesper will talk more about that. But the main reason is weak demand in combination with too much inventory in the market.

This in combination leading to price pressure in the market. Highlighting the positives in the quarter. We are very pleased that cash flow improved. We're also very pleased that the inventory reduction was successful and that we over-delivered against our set and communicated targets.

Also, of course, happy that we strengthened our balance sheet with the directed share issue. And we also start to see results of our cost-saving efforts. We will come back and cover all these points in a minute. Slide five, please. A slide highlighting the extremely turbulent market conditions of the last three years. Here you can see our organic growth development from 2019. Hitting the pandemic in the first quarter of 2020, with a massive growth in demand, plus 30 and at times above plus 40% of organic growth, and as you all know, the supply chain disruptions following. and then straight from the pandemic to the outbreak of the war in the first quarter of 2022. Rent increases, inflation, energy crisis, and as a consequence, softening demand. As a consequence of this, and as you all know, we are now in a contracting market after the massive changes to the market conditions of last year. It is challenging times, and we expect a challenging 2023, especially in the first half of the year.