Nimbus Group AB (Publ)

Yes, thank you and again welcome. Business update, third quarter. A tough quarter of course. We have an ongoing recession and we also have a quite unstable new political environment or surrounding. It means that it's quite tricky to read and it's not as predictable as we wish then of course. At the same time, this score goes more or less than for everyone, and especially the companies that are exporting. For the month then, sales amounted to 378 million SEK, down by 20%. Important, if we look at the industry's development, this is actually still a good figure. And if we look at the year so far, it's down 13%. And that is even very good if we compare it then with our peers. And our peers is then, of course, similar companies as us. And that is working then on the same market as we do. And we actually stand out then on the positive side. The EBITDA then, as a consequence, we have a minus 11 million SEC compared with a positive figure of 13. The cost levels they are affected by our lower production volumes and of course then we are decreasing capacity to this lower level or low demand I should say and the ongoing process then in Finland is among other things then is a consequence then. The value boats still then on the negative side. So far we have, or for the last 12 months, we have lost 40 million, which is a quite high figure. But it is a soft market. It is tough. Also, if we look market-wise, the European market is very soft. We have year-over-year 61% down for the sale. and Europe is an important market but remember that despite this decrease we are actually then holding up quite well and that is of course thanks to the fact that we are a global player and we are not depending on a single market anymore. We will come back to this in Europe because it's also interesting things happening there. On the positive side, we have an increased order intake in quarter three of 18% year-over-year. During the quarter, we'll also have the official launch of our new biggest ship, we can say, the new Nimbus 495, and that was in Cannes during September. And so far, we have 10 orders done for production during the full year 2025 that is already on board. And that is a very good figure, very good figure. We have also started the production pre-series of the Aquador 400. And that is, of course, important for us. That means that we now have the complete three boat series, and the Aquador brand then will be sold globally. And I have talked about this before during previous presentations. We know what we have been here so long now, so we know what works and the Accord will be perfect for the global or our global network, I should say. We have also then received the order, the Alekhine order, through Alekhine, I should say, from FMV with a potential value of up to 400 million SEK. And this is a really interesting business opportunity for us, of course. We have experience from that professional market before. We have sold boats to the police, Coast Guard, fire brigade and things like that. But we have never received an order from FMV and we have never received as big order as this. So that is promising for the future. A short reminder, Nimbus Group, founded in 1968, so we have been around for a while. We have a very long history of international trade. Already 1970, we started the exports, so that is something that is daily business more or less for us. We have our true house of well-known global brands, and we score high in all these different brand awareness in the investigations that is done frequently then. We're always at the top. And I will not repeat everything that this slide says. It's a lot of North America. And that, of course, is not that strange. North America is more than 50% of the world market. And if you want to be a player in our industry, you need to be present in the US. As you can see at the bottom, US today is actually our single biggest market. Then go to the next slide. A little bit about the order book development. The order book amounted to 508 millions, and that is actually the same as last quarter. And that is also then another sign that we now can see that the market is leveling off. And also interesting, if you look at the relation to the last 12 months, you can see that we now are on 28%, same as last month. And actually then if we look at the chart on the right side, you can see that it started then. We start here at 43.19, the last normal year. And what is normal today? That is of course a question, but as we see it, the last normal year. And then we had the same, 28%. And this is normal for us. We will not see long order books as we saw during if I think that we will have slightly higher ratio than we have today. It's still that we don't have that long order books in our industry. Same as the car industry, for example. And as I said before, the order intake in Q3 increased 18% year over year. And interesting then is that Europe actually stands for a big part of it. And I know that Rasmus will get back to that later on. But that's interesting and, of course, also very important for us. The indication in Q2 then that we had the shift towards short order book timeframe then has been then more or less confirmed. And you can say that we now see the normalized picture from that perspective. Of course, positive effects from Nimbus 495 and Olokin. And it should be like that. News sells in our business and product development is one exactly as we want to see it. Only confirmed orders in the order book as before. And it's prepayment, of course. And if we do the same comparison that I did before and look at the 4319, same level or same ratio, I should say, but softer quality, because at that time we didn't have that rule when we looked at the order. And the order from FMV is not included. It's only the pre-series or the prototype, you can say, that is included. And with that, I leave this to Rasmus.

Thank you, Jan-Erik. Then we move on with the sales development per market and start with North America. The North America dropped by 3% to 201 million, and the drop was driven by lower sales from the Edgewater brand due to the market situation. On the other hand, the Nimbus brand increased the sales by 42% in the quarter year over year, which is very strong, we think. The US market as a whole went down by about 10% to 15% in the retail segment to end customers in the same period. The Nordics dropped by 5%, but the signals tell us that the markets now seem to bottom out due to the fact that we see that the order intake has increased year over year. Sales in Europe came out as a disappointment with a sales drop of 61% year-over-year in relation to our expectations in front of the summer season. This was a drop by around 100 million, having of course big impact on both our P&L and the inventory. But important here to mention is also that the order intake in Europe actually has increased compared with last year, which means that last year's sales was therefore mostly driven by an older order book. Other markets went down from 19 to 8 million, but of course on low levels. On LTM basis, other markets correspond to less than 4% of the total sales. On LTM basis, we also see that North America continues to grow by 36% year over year. And the data in Nordics and Europe has dropped by 21 respectively, 34%. Also, the market has increased by 21%. Net sales in the quarter amounted to 378 million, which is down 20% year-over-year. And as I said before, the drop here is driven by the European market, which has had a soft situation. Sale from owned dealers has remained on the same level as last year and amounted to 114 million compared with 112 last year. So it's slightly higher. Sales to external dealers and direct sales, including spare parts, went up to 264 million, which was down 27% year over year. And this is also driven by this European slowdown that I mentioned. On LTM basis, the net sales ended up at 1,706,000,000, which is now down by 9% year over year. And then we come to the EBITDA. The EBITDA in the third quarter amounted to minus 69 million compared with plus 13 last year. And the difference is driven by this restructuring provision of 55 million related to the finished production. and from also lower sales volumes of course having a big impact on our gross profit by around 20 million. On 12 months basis the losses from the valuable business amounts to about 40 million which means that an adjusted beta on LTM basis without the valuable would have reached about 56 million, including taking into account the restructuring provision, and an EBITDA margin of 3.3%. On top of this, it's also important to have in mind that the temporary production stop was made in the first quarter in Edgewater in order to reduce dealer inventory levels. This had a negative impact for the first and the second quarter of 36 million. Since the second quarter, the gross margin has been recovered from the former negative currency effects that affected mostly 2023, but partly also the first quarter, 2024. These margins are now restored with the correct price lists and which are reflected in the order book. But however, this effect has been offset by the customer absorption. effect from lower production, which makes the gross margin flat in total. Cash flow and working capital. The net working capital increased in the third quarter and ended up at 563 million, which is up 50 million since the second quarter. The networking capital is, of course, affected by those higher levels of finished boats, mostly due to this soft European market with less in-for-out sales than what we anticipated in front of the season. Operating cash flow in the period amounted to minus 69, mostly driven by less prepayments since the second quarter. And the networking capital in relation to LTM sales amounted to 33% versus 27% last year. And with that, I leave the word to you, Jan-Erik.

Thank you. Financial targets then. And then we actually stick to the very same meaning that we want to have or we are aiming at the growth above 10% on mid-term going forward. The EBITDA margin, 10% then. And for us, it's to reach it again. The capital structure will be no financial debt, and we have no financial debt, and we are only allowed, so to say, to have it when it's related to property. And we want to be a company that use dividend as one of the tools, so we have a dividend policy that we will have 30% of the result as dividend. If we then look forward before we go to the Q&A, the financial calendar, the Q4 report will then be presented the 4th of February 2025. And with that, I leave to questions and to Gunilla.

Do we have any questions from the telephone conference? So, operator, are there no questions from the telephone conference?

There's no questions. No.

Okay. Thank you very much. And we don't have any questions from the web either. So with that, I thank you all for listening in and welcome back in February. Thank you.

Thank you.