Cint Group AB (publ)

four of our clear focus areas for the quarter in that regard. We have rebuilt Engage, which is our new panel platform. And that panel platform is now fully integrated with the Synth Exchange. What that means for our in the new Synth Exchange to exclusive high quality panel at a larger scale and size than ever before. It's also critically important for our legacy Lucid customers who have not had direct access to this panel before. Very soon, later in July, we will launch our ScentVerified audiences as a native app in the Snowflake marketplace. This is an opportunity, of course, for our data solutions business and allows customers to purchase our verified data through the Snowflake platform. As we've been speaking, the study creator DIY product within our measurement business is growing rapidly. It's a very nice fit, especially within the European region. And we've seen substantial growth in that part of our business over the last quarter. And finally, we speak about our new measurement integration. integration into the Trade Desk. We've upgraded our API, as well as the reporting and data capabilities that our customers can achieve through the Trade Desk integration, including visualizations, AI generated reports, and also multi-touch reporting as well. So these are clear areas of innovation that we lifting of migration in the second quarter. So proud of what the R&D and product teams have been able to accomplish with a lot of things on their desk. And now I move to Niels to go through the financial elements.

Thank you, Patrick. Good morning. Starting with the first one, just a reminder of our financial targets that we announced at the end of January this year. In particular, the sales growth of 10% combined with margins of 25%. And then the leverage ratio to keep that below 2.5x. Dividend policy, no dividends. And we are following the net zero targets from Sweden as well. Going into this quarter, you can see on the left graph that we had decline of revenues of 6.6%, 2.9% in constant currency. I have to highlight that this quarter, the USD versus Euro exchange rate had a lot of movements, USD becoming weaker, and therefore the constant currency numbers are better for us because we have a lot of sales in USD. About two-thirds comes from the Americas. Underneath of this sales number, we have the same picture as we have seen before. So we have decline in Synth Exchange and then increases in media measurements. And moving to the middle graph, the gross profit improved, even though we declined in sales, which is of course great. So we now have 88.8% gross margin, which is 1.8 percentage points above last year. on a smaller basis, so that's great. It's driven by lower hosting costs and personnel costs. Then moving to the right, the full profitability to EBITDA. Also there you see a strong increase. So we arrived at 8.2 million, being a margin of 20.8%, which is 3.9 percentage points above last year. And again, also here on lower sales basis, right? So this is also a great improvement. This is driven by the cost savings that we did both in June and in December. Moving on to the net sales development. So as mentioned, Sint exchange declined. It's 9.1% in constant currency. Media measurements, 14%, one four. So that's a similar picture as we have seen before. And it's mainly driven also by the America's region. And then if you go to the right, you see the regional splits. So we have a decline in Americas and APAC and an increase for the first time in a while in the EMEA region. So that's also great to see. And then moving on to the full P&L. So we already discussed sales and gross profit. You see here the full numbers and EBITDA as well, of course. So we don't have to focus on that. Again, you can see that the cost basis is lower across the board. So this is actually the first quarter where we have a clean and new cost base for going forward after we had the cost savings last year and also the rights issue that we completed at the end of Q1. Right now, that's fully behind us. Yours fed lower interest expense. Therefore, you cannot see that here, but we will get there later. So overall, this clean and nice P&L to look at. Also, no NRIs, items affecting comparability. So there's actually a small positive effect reversal that you see there from last year. It's 0.5 million compared to last year when we still had 4.9 million that was partly for the integration between Lucid and Synth, and also that we announced cost savings in June. So that was also in there last year. So we don't have any of that this year, which is great, of course. Moving on to cash, see also similar picture. So we have good, strong cash flow from operations. The working capital cashflow was actually down this quarter. That's driven by the accounts payable side. We go into that later. Other than that, cashflow from investing, that's related to capitalized software development, where we capitalize the investments into the new platform and the new features, et cetera. So that's in line with expectations. And the bigger change that you see there is the financing part. So here I need to highlight that we had, of course, the rights issue proceeds that we received at the end of Q1. And at the beginning of Q2 in April, we paid down the loan with 35 million USD. So that's in there. And then also we had a 5 million USD down payment at the end of the quarter in June. So that is what goes in there. That's all according to plan and what we announced with the rights issue. So overall that leaves us with a net debt of 13.7 million compared to almost 80 million last year. So that's of course, or less, yeah, less year exactly. So that's a huge improvement. And the final point, the leverage ratio, we just looked at the targets, it's 2.5X, we're actually at 0.3X. So that's much better than our target actually, which is great of course, and a really strong position to act from. So we can be proud of all of this. Moving to my final slide around working capital. So you can see that the total working capital went up a little compared to the previous quarter. This is driven by accounts payable decline, as you can see there in the middle of the table. We had a strong reduction again in accounts receivable. So this is still our main focus, of course, To reduce further, but it's great to see this decline from 120 million to 97 to now 84. It's still coming from the same structural improvements that we talked about last quarter as well. So legal entity rationalization, ERP consolidation, one CRM system, and we also have more capabilities there. A lot of automation and improvements in the background. So this is really great to see as well that it's paying off now. So overall, as a percent of Total customer spent also the receivables is now lower than we have seen in a very long time. Yeah, I think that's actually it from the financial side. We can get Patrick back on the virtual stage and then we open it up for questions.

Thank you, Niels. I am back.