Björn Borg AB (publ)

good morning and welcome to our q4 2024 presentation and with that also the closure of 2024 and looking back you know for us it's been a great year so when we were here the last time announcing our q3 and also of course just prior to that we updated our long-term financial goals and we clearly told the world that we are now ready to start growing and looking at what has happened since that is exactly what we have done We have identified a number of growth initiatives, of which two are strong categories in footwear and sports apparel, and those are doing an exceptionally strong development currently, which is absolutely great, of course. We've also said that we want to grow more in Germany, and that's been our number one growth market, and here we see also good progress. together with, of course, all the other categories, all the other markets, continuing to slowly, of course, add to our top-line growth. But looking at 2024, I think clearly the highlights are divided into two things. One, an ongoing, very, very strong development for our sports apparel collection. Looking back, I think now we have 10 or 11 quarters in a row with double-digit sports apparel growth, but also of course, integrating footwear. So a year ago, our licensed partner went bankrupt and it more or less just landed in our lap. thanks to an incredible team in stockholm and out in the markets we managed to capture and take care of the chaos that all of a sudden just appeared and now looking at that i think the way that we handle it is our biggest success for 2024. we did it still managing to increase our profit full year. And of course we did it and also continued then to grow our footwear. And for footwear, we believe that this is by far our number one growth opportunity. This we can do a lot, lot better. Some of the highlights in the quarter is that we're growing 90% almost to 235. Looking at all the channels, we saw a very, very strong development for our wholesale division. So that's, again, the stadium, the XXL. Very, very good momentum. At the same time, our e-commerce continued to grow at 10%, a bit lower than what we're used to, much thanks to that we're reducing our discounts. So we want to sell more products to full price. And, of course, we can do that because the brand is getting stronger and stronger. but with that said you know 10 growth is still strong but of course not the high 20 that we've been used to looking at the other years looking for full year we're still growing you know almost twice the space of what we did in q4 retail stores of course as you already know i've been talking about this for many many quarters we want to close down our full price stores we want to keep our outlet stores and instead we want to invest that money into online growth but also then building branded space with leading retailers and one of those examples was a shopping shop at ulster house in hamburg due to that of course retail will continue to decline looking at the comp store so stores versus stores that was open we still see an increase As I said, you know, the product groups are developing nicely. All of them are growing very, very good in Q4. And of course, the full year victories, of course, footwear, but also, of course, a very, very strong sports apparel growth. And here we see that, you know, after many, many, many, many years of just focusing on moving the brand from only being underwear into becoming sports apparel and sports fashion is really now working. So good, good opportunity, good momentum. And I'm really, really proud over all the work that we've done so far. Gross margin in the quarter is declining a bit, down to 53.3 versus last year. It's partly due to currency, but not so much, actually. Most of it relates to integrating footwear. So, of course, as you can imagine, you have a partner that goes bankrupt. You need to retrieve products in harbors, in boats, sold in by someone else to customers that you potentially have not called. And, of course, in all of that work, In order for them to still take those products that are most of the time, of course, also very late, we had to give one-off discounts. And that has been impacting us for the last probably six or perhaps even nine months in terms of gross margin dilution versus how it was last year. Looking at our operating profit, then we in the quarter are decreasing again, thanks to, on one hand, of course, the footwear margin, also investment into the team, and also us continuing to invest into the brand to make it even stronger. Both those investments, of course, is essential to enable us to continue to grow. Looking at full year, still, of course, our profit is higher than last year. long-term vision is exactly the same so we're not changing here you know we're here to build a sports fashion brand for those who wants to feel active and attractive and the whole idea again is to build that sports brand that inspires you that you should move you should train not to become an athlete not to take part in any competitions you can do that too if you want but actually to live longer to be a bit happier And we believe that even in a world that is, well, a bit shaky, that's exactly what the consumers are looking for and also exactly what they need. You know, take control of what you can take control over. And one thing, of course, by doing a bit of exercise every day, moving a bit, that day will be a better day for you. Looking at then the brand heat, and of course we know that one of the things that makes us completely unique is of course the brand. And our job here is to fuel that brand with as much value as we can. And here we can see that the brand is getting stronger and stronger. And of course we measure that every week in all of our markets by asking end consumers. And some of the highlights this quarter has been around her. So both, you know, purchase intent in Sweden and Holland is increasing dramatically. and aided awareness in him in Germany is also increasing. So, of course, in Germany, as I said, one of our focus markets, the deal here is really to build a brand that people recognize. So, of course, it's going to be a long road before we are as strong as we are in Sweden and the Netherlands. But the work has really started, and we see promising signs of the brand actually getting stronger and stronger every quarter here as well. Underwear Hymn, we're maintaining a very strong position. The trick here is to move into a new arena where the potential is bigger, but without, of course, losing the category ownership in underwear for Hymn. And we're managing to do that. So not only does the brand in around underwear become stronger, but also, of course, the revenue. So we've never sold more underwear than what we did last year. So I think that's a very, very strong sign that the... whole idea of moving into a bigger arena building a different brand still enables you to continue to drive high growth in your core category apparel and person intent is also slowly increasing meaning of course that we're getting more and more traction within consumers in all of our markets simply wanting to buy our stuff The top line again, so of course, looking at the quarter, record quarter, we've never done it anymore. And of course, we're far, far above our second best quarter. So 19% growth, absolutely incredible. Yes, one part of that is due to footwear, but we should remember here that we also did footwear in Sweden and online, for example, last year. so there's no non-comparable impacts here the only thing that we did was we added sales in europe that we didn't have last year so here of course we have a bit of an upside but overall the major growth actually is driven from footwear but also in the markets where we already had footwear which of course showcased that when we take it in-house when we take control we can have a fantastic momentum Also, of course, sports apparel is driving the growth here, but a record quarter and also with that a record full year. So we're super, super proud of the top line development and very happy then to tell all of you that we are well above the financial trust that we communicated to you guys in August. So 19% growth in the quarter, 14% growth full year. Absolutely fantastic. It's spread across most of the markets. I think Sweden has done a fantastic job in Q4, but full year we see a strong growth across the board. Looking at the different channels, you know, wholesale, as I said, did, you know, something incredible in Q4. So very, very strong momentum. Ecom continued to have a strong growth. Retail declining a bit. However, of course, comp store development is still plus 5%. And last, then distributors. So a smaller and smaller part of our business is still, you know, growing, which of course is good. And not showcasing that we have a very good momentum in all of the different markets. But again, you know, small part of the business and not our focus. We simply again believe that where we can make the biggest difference is where we talk directly to consumers and where we can take ownership of the full sort of supply chain creation to a customer buying our product. Look at that online development. So this is something we start tracking back in 2018 and we continue to do so. We see that a big share of our business is done through online. However, what we've seen probably the last year and a half and has really been accelerating during Q4 is an increased traction in physical stores. amongst our wholesale partners. So very, very strong development. We see that a lot of consumers are shopping at the shop floor, not online. And we believe that one of our strengths is that we can manage, you know, different channels and different way of going to market within what we're doing here. So both OwnEcom, of course, both strong corporation with strong e-tailers such as Boost and Zalando, but also, of course, a very strong partnership with customers that had a mixed go-to-market with both own e-com and physical stores. And that has been working really, really good in the quarter. And of course, we should continue focusing on that. Again, of course, with a record quarter, everything is looking good from a sales perspective. Looking at our categories, underwear is plus 14%, so absolutely fantastic. Also strong full-year growth numbers. Apparel, 44%, bags, 30%, and footwear, then plus 57%, of which our own e-commerce is driving a very, very strong growth momentum, almost 100% growth since last year. So very, very proud of that. So with that said, of course, again, bottom line, struggling a bit, but I just wanted to remember that full year, of course, we're still making more money than last year, despite, of course, doing a lot of stuff that will drive growth for the future. But again, who better to run this through than our fantastic CFO, Jens. So welcome on stage, Jens, and you just fire away.

Thank you, Henrik. Thanks for that. And good morning from myself as well. And what a Friday it is. I was just thinking this morning that how lucky am I to work at Beyond Boy? I work with colleagues such as Jessica and Kim. You're simply amazing. You make everything possible. Polina, Anna, simply superstars. I cannot wait to get back to work. See you guys soon. Anyway, so bottom line, we talked about the gross margin already, slight decline towards the end of the year due to the investments that Henrik just mentioned. So there's marketing investment to build the brand going forward. There are some investments due to the footwear integration. However, we do see some uplift in the footwear area that we have communicated earlier. So we estimate the gross margin in the footwear area to go up after the initial investments are done, let's say. In terms of the profitability, so EBITDA, as Henrik also mentioned, 102 million stronger than last year, even though the Q4 itself isolated was slightly shy of last year due to the investments just mentioned. Super proud of delivering a full year profit that is higher than last year with everything that we've done during the year. So that's fantastic. Same story on the bottom line in the net income, where we see a slight decline due to some sort of FX conversions of the cash pool, you could say. Nevertheless, super strong year in terms of profitability if you look at the full year with everything that's been going on throughout 2024. If we take a look at the balance sheet, so the equity through assets is slightly declining, but still on a strong level, around 50% where we've been all the time. So that's super strong. Remember, we had quite a high dividend during 2024, and the board will present to the AGM that comes up in May the same dividend of three crowns. per share so that we'll see if the agm accepts that obviously but that's a strong message ascent in terms of the net depth that goes a bit up and down towards end of the year but we are fairly close to being on a let's say a cash position that we were last year but nine million in net debt is quite low we're coming from a much higher debt situation so Even here, I think we see a strong position when it comes to the balance sheet. Finally, another KPI that we measure is the working capital, which obviously has quite a big impact on our business, and we want it internally to be stable around 20%. in relation of rolling 12-month gross sales. And that's where we've been for the last couple of years. So keeping the inventory mainly in the accounts receivable payables in good control, you could say, is quite a good sign for a healthy company, at least if you ask me. So with that message, I think you should close this Friday.

Yes, yes, yes. So let's wrap it up. I'm sure that Yalmar has a couple of questions as well. But just to summarize everything then. So record sales in the quarter, record sales for the full year. Thanks predominantly to one thing, and that is that we have a fantastic and a very, very strong team. Sales is not the only record we broke last year. Actually, also our internal anonymous engagement service showed record level. So it's a very, very strong team that you are investing in. And of course, a great team will accomplish great things. The brand is continuing to become stronger. Secondly, of course, we have very strong momentum in all of our channels. And last, of course, our carriers are really, really growing. And I think we've showcased since we've changed our financial targets that we are now into growth mode. And we strongly believe that we can continue to grow more than double digit. And at the same time, of course, maintain good profit levels. a strong dividend and again of course just looking at today probably a dividend yield of you know around five percent which i think is a very strong sign for the future so as you see and as you feel we're fired up we're ready to get this going been here you know many many many quarters but it's a lot of things now that is falling into place despite of course the world around us being a bit challenging but as we've always said we're still small market going down still means that we could take market shares. And looking at 2024, in Sweden, we took market shares in all of our categories. And of course, that's the intention to continue doing so. So with that said, you know, have a fantastic Friday. Don't leave us just yet. I know that Hjalmar is just, you know, eager to ask me some questions as well. So Hjalmar, I want you just to fire away.