Clemondo Group AB (publ)

And a warm welcome to this report interview with Lemondo. Lemondo released his Q2 report for 2024 here this morning. And now we have the great honor to be able to talk to CEO Jesper Svensson and CFO Jesper Friis Jespersen. A warm welcome Jesper and Jesper. Thank you very much. Thank you very much. You will start with a presentation about Q2 and Clemondo, and then we will end with a Q&A that consists of partly my questions and then questions from your owners that they have sent in to me here during the week. So with that I hand over words and pictures to you.

Thanks so much, Hugo. Thanks so much. Vi har släppt en rapport nu på morgongen som pratar dels om en tuff marknad, men också att vi ser där de effekterna vi vidtar får effekt. Lite olika på olika affärsområden, men vi kommer tillbaka till det. En agenda där vi går igenom lite om Tremondo, vår vision och strategi, vår marknadsområde, viktiga händelser, nyckeltal, finansiella resultat och summering. Jag hoppar direkt in på Clemondo för nya lyssnare. Vi gör hållbara rengöringslösningar. Vi har tre marknadsområden. Vi har fordon där vi gör rengöringsmöjlighet till tvättar bilar och fordon och båtar. Vi har industri där man tvättar industrimaskiner och vi har hygien som riktar sig till vården, rengöring av människor och sjukvårdsutrustning. A few years ago, we released our new brand Greenium, which is a completely plant-based cleaning series that helps our customers achieve their sustainability goals. We are moving from being a chemical company to becoming a sustainability company. On this journey, we rest in our It means zero emissions to the air, zero impact on the working environment. It is both here in our factory and in the customers' business. Zero water pollution and zero land emissions. It is based on our sustainability ambition. We did it. Clemondo was early out with sustainability work, but we have accelerated that strength since 2021. I'm not going to go through all the things on this list, but we keep a high pace when it comes to being the best at being able to keep clean without polluting nature. I was going to go through a little background on why we are where we are and understand the environment. Climonde has a history of being unprofitable for many years. We set up a new management in 2019, and in the next five years we have made a turnaround. We have made it successful, but over time we have also had a pandemic that has been challenging, and we have had a raw material shortage and hyperinflation of our materials. So 2024 is the year that we go from profitability to profitable growth, and we are in the middle of that transition and that journey we are in. If you look at the chemistry industry in general in Sweden, it is still in a decline of between 15 and 5 percent. That is the environment we are facing, a significantly smaller market this year than it has been in previous years. When you look at our top line, I think you should have that in your calculation and evaluate it. If we look at Q2 and our three market areas, vehicles, hygiene and industry, I'm going to go through the respective business areas and start with vehicles. It is in those business areas where we have a problem. It is partly a tough market in transition. En marknad i absolut Sverige toppnar när det gäller konkurser. Jag tror ni har läst Hedin Bils årsredovisning med kraftiga minusresultat. Vi har Bilia som skyller sina siffror där det inte ser så bra ut på sin verksamhet just i Sverige. Det är den kunden som står för 60% av vår omsättning. Så det är den marknaden vi verkar i. Vi håller på med ett intensivt förbättringsarbete. Det går från att korrigera prisbilder både upp och ner, men hitta rätt i det. Vi var också tydliga i rapporten att det tappet vi ser är hänförde till ett mindre antal kunder, och där pågår såklart ett intensivt arbete i att förstå varför vi tappar, och förhoppningsvis då också kunna återgå till de volymerna vi hade tidigare. What is nice is that we see that the first marks on the work we put down, that it starts to break. And it can be said that the market has continued to go down during Q2 in general. During the same time, we have slowed down our loss. All the other same means that in a smaller market, we perform a little better. And that means that we have become better than we were before. Vi håller samtidigt på med en strategiöversyn. Den kommer presenteras under kvartal tre. Jag hoppas vi får göra något tillsammans med dig, Hugo, och presentera det lite längre fram. Så detta är ju här vi har våra problem på fordon. Tittar vi på våra andra affärsområden däremot, tittar vi på hygien, här ligger vi, de senaste fem åren har vi haft över 200% tillväxt. We have 7% growth in the quarter, which is strong in the current economy. Growth is increasing in this quarter compared to the previous quarter. It is also a business that depends on the economy. People, unfortunately, get sick even in bad times. About half of our contracts are publicly traded and half are through different types of resellers. But what recognises all of our contracts is that they are often long contracts that run for three, four and five years. So it's a very nice business to rest against and have at the bottom. So we are very satisfied with the quarter. Relatively strong growth, one can say, one grows essentially much higher than the market in large. Same thing with our industrial business, where we started a investment during October last fall. We are now up to 8% growth there. That's 2% more than what we had during quarter one. Since we have received evidence that our investment is breaking, we have also expanded the investment and employed more resources. We have done running. The last resource that came here to us actually came as late as last week. What you can say is that when you invest in sales capacity, you have about a delay period där du inte får någon extra intäkt de första sex månaderna, utan det kommer där bortom. Så det är en inbyggd förseningsmekanism med ungefär sex månader. Givet det så är vi väldigt glada för den tillväxten vi klarar att uppvisa i kvartalet. Och sen ska Jeppe ta över och presentera vårt hållbarhetsarbete.

Tack för ordet Jesper. Yes, if I start with Greenium, then we have a fine Greenium share. That is what Jesper was talking about, where we can affect our customers. It is at 42%, which is part of our range. Then we have a number of other KPIs that we measure here in our journey towards zeroing. It is partly to reduce electricity consumption by 5% per year. There we have a decrease so far this year at 3.46%. We have that we will recover 100% of our process water by 2030, and so far we are at 98.32%. And then we have zero emissions to the ground, where we also have a nice figure to follow. If we look at important financial events during Q2, we have had a renewed contract with Lyreco worth 16-20 million SEK during a two-year period. If we look at the development of that contract so far, it is a very nice development that we have on Lyreco, so it looks very promising and good on that side. Let's take a look at the key figures under Q2 2024. If we start with the top row, just as Jesper mentioned, two of our three market areas have performed well, also due to the general situation we have, where both hygiene and industry are growing by 7-8%, which we are very happy about. As Jesper also mentioned, So har vi inom fordonsidan, så har personbilsidan, den har det tufft. Våra kunder har det jobbigt. Det återspeglar över till oss deras affärssituation som de befinner sig i. Det gör att då tappar vi på en handfull kunder inom fordonsidan. Det gör att vi får total negativ tillväxt. Ser vi till vår bruttomarginal, så har den växt både i kvartalet och ackumulerat med en och en halv procent, vilket är väldigt positivt via de effektivitetsförbättringar som vi har gjort för att stärka upp våra marginaler. Det arbetet fortlöper och löper på fint i verksamheten och vi ser också att det biter här. Ser vi tyvärr rörelsekostnader, ja, där har vi också sett att vi We have decided that we are now going to seek to turn and create growth. This means that we hire consultants, we hire people at a certain pace, and this increases the costs of movement at that pace. So it follows that development according to the plan we have seen. If we look at our results, we can say that we do not reach our financial goal here with 10% EBITDA. And the main reason for that is that despite the fact that two business areas, hygiene and industry, are growing well, with the problems that exist and on the passenger car side, it cannot compensate for that loss and then it becomes a total volume loss that runs through and that affects negatively. We have had focus on profitability in the turnaround and it is clear in our solidity that it has given effect. We are now at over 60%. We have a low debt rate of 0.6%. And that gives us a sense of security when we want to invest and use that solidity to make use of the ability to create growth. If we look at our cash flow, we are pleased with the decrease in volumes. We have improved our cash flow both quarterly individually and compared to previous years. Earlier listeners recognize this diagram. The blue stacks show the sales and the red curve shows the EBITDA margin. What can be said is that compared to previous year's stacks, the Q1 and Q2 sales stacks are almost the same height. There is not much difference in turnover between the two, as it has historically done here. Otherwise, it follows quite well. The higher the volumes we get, the more often we get the possibility that our fixed costs spread out to a larger volume. Now we look at our financial goals and how we have succeeded with that. Yes, 12% growth per year of half organically. No, we can't do that thanks to the situation we have right now on the vehicle side. som vi jobbar för fullt med på vända. En EBITDA på minst 10% över en konjunkturcykel, ja, vi når 8,2%. Det är som jag sa, det är personbildsidan som är huvudsaken till att vi faller ner i kombination med att vi samtidigt aktivt har valt att stärka upp med resurser för att öka vår förmåga att skapa tillväxt. Och soliditetsmålet, ja, det klarar vi med bravur uppe på över 60%. I leave the floor to you, Jesper.