Nimbus Group AB (Publ)

Okay then, again welcome to this presentation of our quarter one report and I will actually take the opportunity then to talk a little bit about our seasonality. We will now present actually our weakest quarter that is number one and it's closely followed by the quarter four which are the weakest meaning then also that the next following quarter the number two and the number three will or are the best ones that we have And you that follow us knows that we recent years has put in a lot of efforts to balance our business here as much as possible. And actually then today we have reached a much better level timing wise and also or maybe I should say because of our geographical balance. So now we are becoming true global and that is actually then what when we talk about sales, but the picture will improve. This is extremely important for us. And if we then look at the highlights of the first quarter, 2024, then sales increase 13 percent. And it's actually a close call that I could announce a new all time high. We are actually in par with the last one that happened last year. And we did this despite the situation then in the world, which we are proud of, of course. So it's a high level, very high level. Ibiza amounted to minus 13.9 compared to last year, quite a huge number that differs. But then please remember that we are negatively impacted And it's actually done 23 million due to this temporarily reduced production of Edgewater boats. And why did we do that? Well, when we bought Edgewater in May last year, of course, the seller, they did exactly what we have done. They tried to get as much as possible out of it, of course. So what they did, they produced a lot and they filled up the inventory levels at the dealers. And in the US, you can say model-wise that it's good to have roughly a half a year's production in inventory. And at that time, we actually had almost one year. And when is the best timing to do these activities to reduce the production? Well, you can always debate around that, but we decided that this was the time. And at the same time, we also then invested quite a lot then in the production unit itself. We're talking about maintenance, traditional maintenance. We're talking about sustainability issues. We are talking about working environment, and we are talking about lean production. And of course, the latter one, lean production, we want to improve. We want to be more efficient. As we say, one of our values is always improve, which is then continuous improvement if you are talking about lean from that perspective. And this gives us then actually, if we compare apples to apples, the adjusted EBITDA excluding the unedged water, which is the new one, the new thing, we get actually an outcome that is in line with the last year. So we are in par. And this again then, despite the soft market and the smaller boats, meaning then that the premium boats actually can handle the soft market from that perspective. We have also one of the things that gives us this position is that we have gradually improved the gross margin and in line then with what we have said before and the story behind it I think you remember but it was the exchange rate that moved quite rapidly and since we at that time had a long order book which is not that common in our industry it's good to have a long order book but you also get There are risks to have that you get exposed to risk when, for example, then, as in this case, the exchange rates moves rapidly. Today, we have the right price list, so to say, for the cost in our order book. EBITDA margin ended up in four percent. We have the order book that is on and I will come back to that. It is on the level of seven hundred and eighty nine, which is actually higher than quarter four. And to this, we have to add in-for-out sales, the traditional one from, for example, our own dealers that will then sell used boats, service, things like that, spare parts, and also then, of course, new boats. And then especially the closer you get to the season, the boats get smaller, so to say. The decision is taking much more rapidly. And that's the way it is in our industry. We have a strong order intake of premium boats. And maybe to add, smaller boats are still on the soft side. But what we see then, which is promising, is that we see an increasing activity. The interest has been on a very high level, definitely. So the interests are there. But what we see now is that it's more people that visit us in the showrooms and looking and starting, so to say, the process. Will this happen 2024? Well, I should say impossible to say, but we will for sure see more activity 2024 than we saw 2023. We have also press released that we withdrawn the bond issue that we were looking at. And to make it short, it was simply too expensive for us, according to us at least. We wanted to have the money for expansion, of course. But what I can say about that is that there are always other ways to find ways to stay forward. And again, then taking the opportunity when we're on this picture or this slide, the picture you see there is Nimbus V11, you can see. And that is actually one of our latest launches we have done from the Nimbus design team. And our product development will for sure then not be affected of the fact that we withdrawn this bond. So our product development will continue then in the same pace as before. And for example, then we have launched or about to launch, I should say, the 50 feet dirt, the biggest limbers we have done. And we also have the Aquador line with their biggest one, the Aquador 380. So they are still to come and much more on the doing. This will not be affected. If we take the next slide. I will keep it short. This is the history, but for you that is listening for the first time, Founded 68, so long experience. And we have a long history of international trade, already 1970, export to the first boat. And we are then a true house of, and with well-known brands, with a very high brand awareness And why is this good then? Well, we can work then with many segments, much more segments that we had before. We can work on many geographical markets, which makes us less dependent. And of course, it's always summer somewhere on the earth. And we can also get more dealers and more dealers. It's growth, simple as that. So this is important through House of Brands. I will not go into details here, but the last one there acquisition of the air-water power boats. Well, of course, a game changer for us because that makes us actually to be able to look upon North America as a home market. It is in fact a home market, which is important. The North American market is about 50% of the world market. If we then look at the drivers, I have talked about this also before, keep it short, but the overall wealth is increasing. We have more than two times more money in our pockets to spend if we look at the recent 20 years. We can see this trend that started way before the pandemic that we tend then to use the staycation. We tend to have our recreational time caravans it could be motorcycles summer houses and then of course boats which is good for us and with this money again then we are we are since we work a lot as I say we are also prepared to spend money to get this quality on the recreational time if we look at the industry itself it's a fact and that we have an aging boat fleet most of it absolute majority of it is older than 20 years and that definitely means that it has missed the technical development that we have seen on the last century which has been rapid but also then aiming at things that we need to have in the boating industry before it was the automotive industry that was the driver. And I can give you a very short example. I was actually out with our new 50-feeter, which is doing the seat drive for the moment, and I did the test drive. And it's absolutely stunning that I could actually handle it all by myself. We have the docking support, you have the maneuverability, et cetera, et cetera. And this, of course, makes the journey for the captain, but also for the passengers, less stressful. And that is important because our products should give you these relaxing moments, the enjoyment, because that is actually our mission is to provide you with tools to recharge your batteries. And then my final slide for this, the order book development. Down 17%, and we can then say it has normalized in size, but the premium part of it is 88%, which then gives us that the rest is then 12%. Among that is the smaller boats, and actually including also the traded boats. So the premium boats, the size is all-time high in all. It is, as I said, the order book is geographically well balanced in relations to the world market. In our order book, North America is representing 51%. And that is also worth mentioning that it's actually 66% increase year over year. But in total, the order book is more or less a picture of the world market. And of course, then finally, we only have confirmed orders in order book. That means that everything is in order. We have a production slot and we have the signing fee paid, etc. And with that, I give the word to Rasmus.

Thank you, Jan-Erik. Then we will move on to the sales per market. In the first quarter, the North American sales continued to develop well, and it decreased by 71 million to 160 million. The contribution from Edgewater amounted to 34 million and was negatively affected by the reduced production that Joni-Erik mentioned before. As we talked about before, the North American market is now our single lowest market on a 12-month basis. Edgewater was consolidated as from May 31, 2023. The Nordics has continued to be soft and the sales dropped by 37% to 77 million, which is slightly less than the fourth quarter and the third quarter last year. The drop continues to be mainly driven by smaller boats. In the Europe market the sales dropped by 10% compared with last year and that drop is mainly seen in the northern parts which shows similar patterns as the Nordics does. We continue to see positive development in particularly the southern parts of Europe. Other markets continue to develop well and increase from 20 to 51 million. Which is positive, of course, and means that other markets continue to become a substantially geographic market, but also with even more potential going forward. On an LTM basis, other markets correspond to 7% of the sales. On LTM basis, it's also worth to mention that North America has increased from 179 to 633 million. corresponding to a growth of plus 252% year over year. Also worth to mention that the Nordic sales has dropped 34% on an LTM basis, having a negative impact also on our own dealers. And the sales amounted to size 692 million. And as we said before, this drop is mainly driven by the smaller boats. And then we come to the sales development in total. As Jon-Erik talked before, the first quarter is among our smallest quarters on a full year basis, together with the fourth quarter. The net sales in the fourth quarter amounted to 344 million compared with 304 last year, which is an increase. by 40 million, sales of premium boats increased by 42%, including edgewater, and the sales of smaller boats and traded boats continued to be soft and decreased by 46 million, which was a drop by 63% versus last year. The organic growth, excluding edgewater and currency effects, in the first quarter was plus 2.4%. and the organic growth for premium boats only amounted to plus 25%. Sales to external dealers and direct sales, including spare parts, increased by 24% and reached 296 million, including edgewater, while the sale from own dealers went down from 66 to 48 million. On LTM basis, the net sales ended up at 19.38, which is then an increase by 10% year over year. Then we move on with the EBITDA. The EBITDA in the first quarter amounted to 40 million, corresponding to an EBITDA margin of minus 4%. In relation to last year, this is a drop by 22 million. And the drop is then driven by reduced production and productivity investments in the factory of edgewater, as Jon-Erik had mentioned, which ended up at an EBITDA impact of minus 23 million. Normally, we would have expected edgewater to contribute positively to consolidate the picture in a quarter like the first quarter. Adjusted for edgewater, the EBITDA would then have ended up at plus 3%. compared with 2.5 last year. A positive development on gross margin on premium boat is noted, with prices reflecting new ZK currency development. During the third and fourth quarter, many of the delivered boats were sold at old prices, which had a negative impact on the gross margin. since we were not able to push forward both currency and inflation costs towards the dealers. Now this has become more normalized and we expect this to be fully even out during the second quarter. When excluding Edgewater, the gross margin was actually higher in the first quarter this year than last year. Also taking into account what Jon-Erik mentioned before that we have smaller boats that is still that the production is still closed, which has a negative impact on the gross margin. So the underlying margin for premium boats is therefore higher this year than last year. On a year-over-year basis, the EBITDA amounted to 79 million and the EBITDA margin ended up at 4%. Then we move on to cash flow and working capital. The net working capital in the first quarter ended up at 663 million, which is an increase by 120 since the fourth quarter, and the same level of increase that was seen in the first quarter last year. The stock levels increased by 66 million, where 50% is related to boats in transit to the US, and the rest is related to seasonality effect. The first quarter normally contains the absolute peak in inventory of finished boats with lots of deliveries ongoing in the retail business. Cash flow in the first quarter amounted to minus 90 million, which is actually an improvement then in relation to both 2023 and 2022. Networking capital in relation to LTM sales amounted to 32% compared with 30% last year. having made then a performance assumption of 500 million. Then we come to our financial targets, and we still believe that these are relevant, even if we all know that we are a bit behind today. And we see that our ongoing initiatives will have positive impact on the business going forward and will enable us to strengthen the EBITDA module. Then I leave the word to you, Jan-Erik, again.

Yes, and then we open it up for questions. Just mention then from the financial calendar that the annual year meeting will then be the 16th of May here in Gothenburg. I think it's 3 o'clock.

3 o'clock, yes.

And the quarter two report will then be launched the 17th of July.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. There are no phone questions at this time so I hand the conference back to the speakers for written questions and any closing comments.

Thank you very much. There are no questions either on the chat.

Thank you very much for today.

Thank you.