Clavister Holding AB (publ.)

Good morning, everyone. Welcome to Clavister's Q2 interim report presentation. My name is Kate Linwood and I will be your host for today's webinar. And joining me today are John Westberg, our CEO, and David Nordstrom, our CFO. So we will begin with an overview of the Q2 report. John will share key business insights and David will walk us through the financial details. And after the presentation, we will open a session for questions and answers. So please feel free to submit your questions you have throughout the presentation in the Q&A box that you can find on the top right. And then we will answer the questions after. So yeah, with that, I would like to hand over to you, John.

Thank you very much, Kate. And again, welcome. Our second quarter for the year and starting with what we see as the key highlights of the quarter. I think it's quite clear that we will rank the net sales growth in the quarter as one of the absolute key highlights, so it is a record high growth. But as important is of course that we've been able to convert that growth into an improved profitability, which we'll of course come back to. Even though we have as well our substantial order backlog with us at the sales pipeline, which is really extensive and that brings us a lot of visibility for the future. But starting with the growth and the profitability. So this quarter, again, we saw a record 63% net sales growth. So clearly a milestone for Clevister. that resulted in a net sales of 89 million SEK, so quarterly high there. If we look at the underlying drivers for this growth, the majority of it comes from increased defense delivery. So we're rapidly increasing our conversion in terms of deliveries to our defense customers, defense projects. This includes the large Norwegian defense material administration contract that we won in the first quarter this year. So that project is now up in full swing. We're delivering on it. And as a reminder, that contract runs for approximately 24 months. If we look at our gross margin, as a reminder, our target has been for a long while to have a gross margin around 80%. You might remember that we've also communicated that in periods of high growth we've typically seen a negative impact on gross margin coming mainly from hardware intensive deliveries in periods of high growth. This quarter is actually a nice exception to that. We have definitely a lot of hardware intensive deliveries to the defense sector but we have been able to see a really sound product mix which balances hardware-intensive deliveries with software-only deliveries on a level that still makes the gross margin not only robust but a few percentage points above our set target. If we then look further down the P&L, this growth has been able to flow down through the P&L resulting in that all our other profit metrics EBITDA EBITDA and even net profit has seen a very very strong improvement turning some of them from negative numbers to relatively strong numbers if we look at the EBITDA margin the adjusted EBITDA margin that is actually reaching a 30% margin a new record again so it's a bit of a record quarter the adjustments in the quarter is quite limited so adjusted and the reported EBITDA is fairly accurate. If we move ahead then to the order backlog you've seen when you've been following us that we've subsequently and and incrementally building quite a strong order backlog. So at the end of this quarter, our order backlog amounted to 642 million. So that's obviously a big ramp up from the 375 million last year. this order backlog the the visibility is you know according to the current project plans roughly 226 million out of that backlog is expected to be delivered in the next 12 months period so that clearly gives us a very good long-term you know a visibility for the future and that allows us to you know plan ahead, do proper resource allotments and procurement and delivery planning, but also being able to comfortably invest in both sales and delivery capacity to fuel further growth. If we look at the order intake individually in the quarter, it was somewhat lower than the comparison quarter. main reason for this is that in the second quarter of last year we had a number of multi-year contracts uh that were recorded as order intake then we didn't see such you know multi-year contracts this period which which is which is a you know a clear reason for that if we on the other hand look at the trailing 12 months the order intake is 503 million so bit more representative measure if we look at the swing that can actually happen between the quarters. I'd like to have David walk us through this slide, which is a bit more on the working capital and the financing part.

Thanks, John. I saw from the chat the comment that there seems to be a problem with the sounds, with some attendees not hearing anything. If I just talk a little bit now, it would be good to get some feedback from some in the audience, just knowing, do you actually hear what we're saying or do we have an issue here? So sorry for that, but I think it would be getting some thumbs up. That seems to be working.