CTEK Ab

Thank you very much and welcome everybody to today's call. Today's presenter is me, Henrik Fregenius, and I also have Tom Bathisen, CFO at CTEK. Just a brief description of CTEK for the new participants. We are We were founded by inventor Bengt Wahlqvist 25 years ago in Veikmansyttan in Dalarna. We are developing, designing and testing all our products in Sweden. We have research centers in Veikmansyttan, Sweden, Norrköping, Sweden and Shenzhen, China. We have mainly two technologies which one is EVSE that is chargers for electrical cars and hybrids and low voltage which is mainly 12 volts up to 48 volts chargers to some different segments. Last year we did a slight reorganization and we have now two divisions. One is called professional where we serve our big B2B customers, both client brand for low voltage and EVSE for big parking operators and others. And then we have our consumer segment where we sell to consumers and to retailers. So let's talk about Q2 results. The revenue ended up in 212 million, the gross margin of almost 53%, coming to an adjusted EBITDA of 15 million SEK. We had an operating cash flow of 22 million, and the EVS share of the net sales was 21%, and our net debt is two times. I'm very happy to see that we are growing the company for the first time in one and a half year. We have an organic growth of 6%. We increased the EBITDA margin with 5.7% this point to 7.1%. And we see a very strong increase in the consumer division. We grow with 26%. And thus is due to focus sales activities and we also have launched this CS1 in Australia with a very positive result. When we come to the EVSE, we see some slight positive trends for the EVSE North America, though from very low levels. And we delivered our first CC3 to customers in UK in July with a very positive outcome. If we talk a little bit more about the very important segment of low voltage, this is the fourth sequential quarter that we have growth. And as I mentioned before, we are strengthening the sales organization in the consumer division. We will continue to do so. We see a stable sales in the client brand. And as I mentioned, we are launching new products. And with that, we are also shifting a bit of our focus now when we have finished the CC3 EVS charger, so we will focus more on low voltage development going forward. With that, I'll leave the word to you, Tom.

Thank you, Henrik. So some number crunching for the 42. We had the overall key financials for quarter two. I just highlight here the, as Henrik already mentioned, the net sales growth of 6% adjusted for currency. We have an increase in gross margin, mainly coming from another mix with higher share of the high margin low voltage segment. And those two together means also an increased EBITDA from 3 million comparable quarter last year to 50 million this quarter, driven by volumes and mix, but also lower OPEX than same quarter last year. I continue then to some words from the divisions, the consumer division, that is our largest division, having around 65% of our volumes, where we did a high increase compared to last same quarter last year, 26% increase. And with that follows, of course, higher EBITDA number wise, but also slightly higher margin wise, 38.4% versus 36.1% last year. So in the graph on the lower side of the slide, you can see that we have stable and good EBITDA levels and also quarter-on-quarter, an increase over the last one and a half year. Going over the professional division, here standing for around 40% of the volumes. We can see also that the share of EVSE is somewhat higher than last quarter. It's 56% and 44% from low voltage. lower volumes comes from the edsc part and the mainly actually from the big north american customer where we had higher volumes comparable quarter last year on the lower hand side you can see that we we have now stabilized the volumes in this division we have a slight decrease in the margin but going We know now that the cost base is under control. We now need the volumes to grow the margins and turn them to the positive numbers. Cash flow and capex. I would say cash flow is, of course, a main topic for us to continue to work with. We continue now to create both positive operating cash flow, but also operate positive net cash flow after investments. That is really important. We have the higher continuous EBITDA levels and the reduced net debt leading us to an improved net debt ratio, now down to two compared to 3.4 times same quarter last year. As you see on the graph below, we are still on the same level of capex compared to net sales, 9% as we had last year. We are working both with more efficient capex and we have also finalized some large CapEx projects. So we continue to work on that, reduce consultants and going down somewhat in order to create more cash flow. And in the same time, also, of course, working with networking capital as we have done before to create even more positive cash. So with that, I think I lead back to you, Henrik. Thank you, Tom.

And just as a summary then, I'm very happy to see that we are having organic growth in the quarter and with increased profitability. Also very important is that we are continuing to lower our net debt ratio, now reaching two. And of course, the strong increase in the consumer division with increased focus on sales and also launching products in Australia. And then we see some slight positive EVSE trends. We see a very good welcome of our now new CC3 products now when we are installing it at customer and see a big interest on that. We are continuing to follow our strategy. As I mentioned last call, we have left phase one and are now coming into phase two, where we will focus on organic growth. And we are continuing to strengthen our sales organization, especially in the consumer side. And we are increasing the focus on development of new products in low voltage. And we look positive on the outro of the new EVSE charger CC3. So with that I hand it back to the operator.