Nimbus Group AB

Good morning, everyone. This is Johan Indan speaking. Welcome to the Nimbus Group report for the first quarter. Together with me in the room here, I have Christian Johansson, who's joining as the CFO. And Christian, this is our first quarter that we report together. Welcome to Nimbus. I'm happy to have you on my side. And maybe you should say just a word to introduce yourself.

Yeah, thank you, Johan. And good morning, everyone. It feels very good to get this opportunity to be part of your Nimbus management team, Johan, and this fantastic Powerboat group, even if it is for a limited period of being an interim. Short about myself, I'm a professional. I've worked more than 30 years, primarily enlisted in national industrial companies such as ABB, Volvo and SKF. But during the last years, also in private equity and family-owned businesses. And mostly I've had the CFO role, but sometimes also acted in

other management capacities excellent christian i'm happy to have you on my side now let's get to the core of the presentation which is of course our results for the first quarter we continue operating in a soft market it's characterized by the turbulence that we see in in global politics and it drives a cautious behavior by our dealers and by retail customers We see how this primarily influences the order book for commercial sales, which has been reduced. On the other hand, we see that our retail sales keep their order book on a good level. So I will come back to the order book just in short. For sales, we reduced by 14% as compared to first quarter 2025 and landed on 257 million SEK. Gross profit reduced to 13 million SEK as compared to 37 for the corresponding quarter last year. The reduction in gross profit is primarily volume driven, but also we see under absorption in the factory. So we are not covering the direct cost structure for our operations. In the finance section later on, Christian will break down the gross profit for you and give you some more detail. The reductions we've done on the operational expenses, which we have reported earlier in the quarters, they continue to give us a benefit, but they are not sufficient to balance the EBITDA level. So we're coming in at minus 30 million SEK as compared to minus 13 last year. And as noted in my CEO letter as part of the quarterly report, this is far from satisfactory and we continue pushing hard on our initiatives to turn the trend for the group. One of the most important areas of focus is, of course, our cash flow. And we see that the discipline we have put in reducing networking capital at the same time as sales is reducing is paying off. And we have a relative improvement between the quarters of 98 million SEC in operating cash flow, where we came in at minus 29 for first quarter 2026, as compared to minus 127 in 2025 and as you know if you have followed the group for a while quarter one is the quarter where we build inventory for sales in quarter two so being able to to manage our cash flow in this way is a good uh improvement of our balance of the business finally available cash and of quarter is uh at the level of 191 million sec as compared to 237 last year Now, let's look at the quarter trends over the last 24 months. We know that we are operating in a negative sales trend over the last 24 months. Out of the sales drop, North America contributes to the largest portion. And if you look at the sales I just reported for the quarter, the 43 million sec drop, was represented by 40 million SEC in North America. So North America stands out when it comes to the reduction of sales that we see over time, as well as for the last quarter. For the EBITDA, we see 2025 that was characterized both by our business in Bella, Finland, which was closed by the end of the year and by Edgewater. And as we reported for fourth quarter, they constitute the absolute majority of the losses. But we're still in a negative sales trend, which we see on the rolling 12 for the EBITDA. For operating cash flow, as I mentioned, we saw a relative improvement for quarter one, and we are in a positive trend when it comes to reducing our networking capital. And as mentioned, I'm happy with the discipline of the company. Now there is more to do. We are on the same relative terms of networking capital to sales. And Christian will give you a deeper view of that later. So there's more to do, but I'm happy with the progress on the cash flow. Going to the order book, I've already mentioned that we see global uncertainty. We see that through the reports of many companies, how this affects sales. When it comes to our order book, we see a reduced order intake for the first quarter as we have delivered the order book. Part of the order book during the first quarter, we see that order intake for our commercial sales, that is our business towards dealers, who in turn sells to retail customers. is reducing and we see a cautious behavior out in the market, not only by retail customers, but also by dealers. So risk management is on the dealer agenda and we see that the order intake is slower. On the other hand, for our retail sales, we see that we are holding up the order book and we are holding up our sales and i'm really proud to see how the retail organization is performing in this tough market environment keeping volumes fairly stable over the last years if we then come to some market highlights in a market like this which is tough it's hard earned There is nothing else you can do, so to say, than to be very active out in the front line with customers in order to chase every sale. So some of the things we're doing, we are or have been in the last weeks launching a Your Waters campaign for the Nimbus brand. We see that the global turbulence also affects people's pattern when it comes to vacation. We expect a short staycation trend. People will stay closer to home for their vacations. And we expect that that could have a positive influence on voting. We see that we are in the midst of the spring show season. We have had Helsinki, we have had Stockholm, we had Southampton over the weekend and we continue now through Europe with start of season activities. In North America, where we have our challenges, as you've seen on the sales side, we have started what we call a feel-the-difference tour across key markets. This tour is together with dealers, where we send our team in North America together with dealers. They make VIP invites for boat testing on the water, and this will continue now for a number of years. weekends coming now. We're starting actually last week and that will commence over the next months. So it's all about activating the customers. For a highlight, we've also delivered now and sold our 18th 495 fly. As you know, it's been on the market now for one and a half year. So during 18 months, we have produced and sold 18 boats. And I'm really happy to see that we are also now starting to move some volume in North America. We mentioned earlier in Q4 that we launched the 495 fly in Fort Lauderdale. The unit which was presented in Fort Lauderdale is now retail sold and there are three new units coming across to North America. We hope to continue the good success, not the successor, but the complement, the 495 Coupe, which we start to deliver in early 2027. And then finally, on the European season opening, a very important boat show coming this weekend. It's the Palma Boat Show, which kicks off the Mediterranean season. Now, back to our performance. I already mentioned that we are not happy with the performance in the group. I've covered that in the last quarter as well. And we have a group of initiatives that we've already started. I promised in earlier quarters that I would come back to one or two of those in each of the reports. And to just summarize which the five initiatives are, I will then take you through a couple of deep dives. First of all, we have our Nimbus brand in the Nimbus group. That's our flagship. That's a large portion and our premium brand in the group. And we are now doubling down on strengthening the Nimbus brand. The Home Waters campaign is part of that, but there is more things coming on, making sure that we make the most of this fantastic brand with a strong history and legacy. We're working hard to turn the trend in North America, specific focus on Edgewater. And I will give you a bit of a deep dive on what we're doing in Edgewater. We are improving our commercial capacity and performance. We already, during Q4, launched a new organization. We are adapting the way we work with our dealers to get them closer to us. And we're also looking to add a few specific competencies to increase our commercial performance. We're expanding our business in work boats and defense was reported during Q4. And of course, this is spearheaded by our MSNB 200 boats towards the Swedish defense. And we're improving our operational excellence and cost efficiency. So a couple of notes on first of all, then turning the trend in North America. So Edgewater, we talk about Edgewater, we wanted to give you just a touch of what is Edgewater as a brand and where are they operating. So Edgewater competes in the saltwater sport fish segment, typically called center consoles, and it's the largest boating segment in North America when it comes to larger boats. It's a very specific sport fish vessel, typically used around the Florida coast, but also across North America. Segment is highly competitive, attractive, and market volume has reduced significantly from 2023 to 2025, which is then part of the period where we have owned Edgewater and we are chasing them lower to get the business in balance and actions we are taking them to improve the results. We have made a capacity reduction in Edgewater in early January 2026 that is executed. We are reducing and have been reducing the overhead expenses. If you compare last first quarter, first quarter 2025 to this year, we have made a significant reduction in the overhead. We are overseeing... Being the product range, so the number of product offered, we're looking at the product cost and we're doing the price review to make sure we get the cross profit right for the business. And then the marine market is also about renewal. You need to show new product and you need to be on the trends. So we have launched the Edgewater 250cc during the autumn, which is the first new product launch since 2020. Results so far, if we look at both cash flow and operating results from PACE in Q4 2025 to Q1 2026, we have seen an improvement in both cash flow and the reduced losses for the business. However, not yet sufficient to balance the business, especially when you add the fact that we are keeping or we see continued reduced sales for the business. So we are doubling down, we are looking at further actions, but also expect payoff from the already initiated actions here during the next period. Next then, second deep dive. Last quarter I reported that we see the workload and governmental segment as a strong opportunity for Nimbus Group. We have success with our MSNB 200 and we see a lot of interest around that product, but there are broader opportunities that we can capture and we have been adding resources now to the group in order to be able to address these opportunities. I got a few follow-on questions last time asking, what is your competitive angle and what gives you a competitive advantage towards the sector? And I just wanted to highlight a few things here. First of all, we have serial production capability. We are used to producing 50, 100, 150 boats, several hundred boats on a yearly basis. This segment is typically dominated by yards. who are more project-based, one or five or maybe 10 boats in series. So serial production capability gives us speed in delivery, but also a completely different cost base than you see in a yard environment. We have the technical and the project capability to run these type of projects. We're used to designing boats for demanding customers, but we're also used to doing that on a tight timeline. When we design a boat, we know that there is a factory waiting for the boat to be ready, all the parts to be purchased. And if we are late in the project, it becomes a very expensive exercise. So keeping a timely delivery is one of our core competencies, and we see that's appreciated in this segment. And finally, we're a Swedish public company with a global reach in terms of both supply chain and deliveries and distribution. So these are all attractive features towards this segment. Now, Christian, over to you to run us through some details on the numbers.