Nimbus Group AB

Thank you and again welcome then to our presentation of the quarter two report. First picture actually we stopped there a little bit where you see there is actually then the 495 our newest model and actually then for us a new segment which is very interesting and that particular boat you see is actually down and doing some service now during the Bostad Grand Prix here in Sweden in tennis. A lot of expectation but I will come back to that lovely picture. If we switch page then of course it's me and my companion Rasmus that will take care of that. If we have any new listeners who am I? I have been CEO and at Nimbus for 14 years meaning then that I have quite a lot of experience and of course I have seen a lot of different things and among other things of course the worst downturn that we have seen in our industry and that was actually then connected to the Lehman Brothers crash and that was then something completely different that we see today that was a financial meltdown And what we see today is maybe best described as a mild recession. And I think that's important to take with them when you're listening to this presentation. Next page. We have done some slight changes in our presentation. I hope you like that. So we will actually more Focused on the first part of it, I will describe it in more general picture, less figures, and the figures then will come on Rasmus' part of the presentation, where we focus more on them. But still, we need to mention some figures and start to meet them with the sales that amounted to 623 million. And then that is actually then a drop by year over year, a drop by 18%. 17 percent of that is organic. If we look at the first half year same picture we have a decrease of nine percent and that is also one thing that you have to keep in mind that if we look at our peers we actually then have a far better outcome than our peers and I have talked a lot during these presentations that we have a momentum and the only way I can see it at this point is that this momentum actually still is there. We had EBITDA of 45 million last year, then same period, 83 million. And the difference then, as we say here, mainly due to temporary effects in the finish operations and edgewater. And we have talked about that before. I will not go into that again. But what's important for me is that what we have promised that we will step by step increase our gross margin in our core business. That has actually happened. So important also. So we are strengthening our core business, the underlying core business. On the negative side, the market in Europe is actually weaker than we anticipated. And it's down 25% for our business. And that is not our performance. We expected more, and let's see now what will come for the future. A lot of different reasons, and we talk about that in the report. You can read the report there to get some more flavor on it. The 405 again, we have had the press event for the international press, the boat trade press, and that was a success. So now in all the magazines, around the world. We have a lot of PR for this product, which is, of course, very good, very good for us. And we have then actually delivered during the quarter the very first end customer sold 495. And it's more to come. We're producing it in full speed here in Sweden. And what that means then is what I said in the beginning, that we actually then officially has opened this new segment for us. And we are confident that this will be very good. And maybe then remember that we haven't had the official launch of this boat yet. That will be in the Cannes boat show during September. During the quarter we have also started production again then in Edgewater, and it's gradually then ramped up, and we're actually running full speed from June this year. And as you remember, or hopefully remember, we stopped the production due to, as we saw it, unhealthy inventory stock levels. We have also started the production again in Finland, and that is then what we call the value boats. And what we have produced is, of course, ordered boats to fulfill orders. But we have also produced some of these high volume models that we stopped at the first stage. And there is only then to fulfill the batches. But the major part is actually ordered boats. and good for us and hopefully for you too. The very first Nimbus has then been built in the US and will be followed of many more and is then to be delivered here in July or is actually delivered today. A short flashback of us then. Found in 68, a long history of international trade. I usually tell you that we started actually already the year after with the international trade and has done so since then. We have our true House of Well-Known Brands and again we do it for our dealers. We want to be a big part of our dealers business and that's important and then you have to have a certain number of models depending on what voting is in their particular district. We have then here we only mentioned the last things starting in 2022 a lot of other things has of course happened but what we can say is that the three out of four is actually related to US and as I point out here at the bottom that US is today our single biggest market counterwise And as you probably know, North America is actually 50% of the world market. So this is big. And this is something that we, of course, will gain from for many years to come. We can switch the page again. Yes. Something about the order book development. The order book amounted to 508 million compared to over 1 billion last year. And then it's important that you have some background to analyze that figure. Normally, it is a seasonality in our industry, and especially for us, depending on which market we are active on. And the biggest order stock we had in Q3. And if you look at Q2, the year that we compare with, we actually have a higher figure in quarter two than we had in quarter three. And that is depending on a couple of things. And I mentioned here that we, of course, bought Edgewater and then we bought the order stock, which is important to keep in mind. And then also at that time, we get a lot of new dealers and they, of course, did their initial orders, which is bigger than their normal order, so to say, the normal factory So that is affecting the quarter two and then of course we have the pandemic during a couple of years and we should not compare to that one because that was not what we call the normalized picture. So if we for example look at the quarter two 2020 then you see a normal figure it's 189 that year ended up in roughly 1 billion Swedish kronor. And that is more, so to say, the normal one. And the normal one, we say that we have a clear indication then that the pre-pandemic order book pattern, as we say here, with shorter timeframe and then the possible order intake for quarter three is what we actually see now then. But since it not has happened, we have to then say possible order intake. But keep that in mind, the normal seasonality. And then, of course, it's making it slightly less predictable, actually, than now. And again, that's normal for our industry, planning for the production schedules and things like that. In order book, we have premium boats. Then at the stable figure today, actually, so now we are well above 90%. And this time, 94% is then related to what we say then is our core business, meaning premium boats. And of course, only confirmed orders in the order book. And again, then depending on what market, the majority of them is then prepaid as according to our business model. And with that, I leave to you, Rasmus, for a while.

Thank you, Jan-Erik. Then I start with the sales development per market. In the second quarter, the sales in North America dropped by 14 million. 238 million. The drop was driven by lower sales from Edgewater. Sales from the Nimbus brand has remained flat, which is positive since the U.S. market has dropped about 20 percent. Positive is also that the number of end-consumer-sold boats has increased from 50 percent in the quarter year-over-year. The first boat the Edgewater brand. The Nordics has continued to be soft and the sales dropped by 50% year-over-year to 343 million. But there are signs indicating that we now might have the soft period behind us. In the second quarter we saw that the order intake year-over-year uh increased and that the sales drop was significantly lower than in the previous quarters the first quarter fourth quarter and the third quarter sales in europe dropped by 25 compared with last year and came out as a disappointment as john eric mentioned with almost zero in for out sales in the period which we would have expected to see because of the quite soft order pattern since autumn 2023. Other markets went down from 20 to 5 million but from low levels. On LTM basis other markets corresponds to seven percent of the sales. On LTM basis it's also worth to mention that North America has increased from 287 million to 690 million. corresponding to an increase of 116% year over year and an organic growth of plus 40%. Then we move to sales development in total. The net sales amounted to 623 million, which is down 80% year over year. The change is driven by a softer market situation than last year. Sales to external dealers and direct sales, including spare parts, amounted to 338 million, which is down 22% year-over-year. The sales from our own dealers went down by 11% from 320 to 285. On LTM basis, the net sales ended up at 1,806,000, which is flat year-over-year. The EBITDA, the EBITDA The second quarter amounted to 45 million, corresponding to an EBITDA margin of 7.2% versus 83 million, and an EBITDA margin of 11% last year. In relation to last year, the EBITDA was negatively impacted from Edgewater, and in the quarter that figure amounted to 13 million, coming from the stock production in the first quarter. Since June the production is now running again with normal speed and going forward we therefore expect that Edgewood will deliver in a positive way to Nimbus Group. The finished production of value boats has also started in small series during the second quarter and had a negative impact of 25 million in relation to last year. On a full year basis, I would like to mention that the EBITDA in the second quarter has been affected negatively by approximately 50 million from both the age water and the valuable business. On the positive side, we see that the gross margin has recovered from the former negative circular currency effect that affected 2023 and partly also the first quarter this year. The margins are now restored with updated price lists reflected in the order book. On year-over-year basis, the EBITDA amounted to 39 million. And the EBITDA margin ended up at 2.2%. Then we move to Networking Capital. And the Networking Capital improved in the second quarter and ended up at 548 million. which is down 78 million since the first quarter. Networking capital in relation to LTM sales amounted to 30% versus 25% last year and 32% in the first quarter. In relation to last year, the difference is mostly driven by higher levels of inventory due to both timing effects in boats in transit to US and a weak European market with less in-for-out sales than expected, which Jan-Erik talked about earlier. And then I leave the word back to you, Jan-Erik.

Thank you, Rasmus. And then short about the financial targets. The simple way to put it is that they stand. We keep them exactly the same way as we have done. Of course, we have some gaps to fulfill. But we then have as a target growth during a business cycle then of above 10%. And we have achieved that before. But now we can then say that it's a new start of that journey. The beta margin 10% on a midterm basis. And that is our target. That is what we want to achieve in that perspective then. The capital structure that no financial debt and we have no senior debt and we should not have that. And the only allowed one is then except property. But we have none today. And of course, the dividend policy, 30 percent of the net result. And we then at that point, we take some consideration of the current cash flow, of course. But otherwise, this is done. the same financial targets and we continue to have them as a financial target. And with that we have had this presentation. I think I'll leave the word quick to Gunilla to talk about the last picture.