CTEK Ab

Thank you so much, Operator, and warm welcome to today's presentation of the Q3 report on CTEK. So I will start with some overall information about CTEK. CTEK was founded more than 25 years ago by this happy man and entrepreneur Bengt Wahlqvist in Vikmanshyttan, Dalarna. We are doing all our product development, design, and testing in Sweden. And then we have production in Asia and Mexico. We are chosen by the best. We have almost all premium car manufacturers as our customers. And here you can see a nice Lamborghini co-branded with CTEK. We are mainly having two technologies. One is the EVSE, which is chargers for electrical vehicles, and the other is low voltage, where we are having chargers for consumer, we have chargers for workshops, and as I mentioned before, for client brand, and also integrated solution that could be in recreational vehicles or in blue light. Here we have tried and show you where we have addressable market for our different products. If we start with the electrical vehicles and the plug-in hybrids where we can sell our EVSE chargers, but it's also demand for our pro chargers for the workshops and also every EV and plug-in hybrid has also a 12-volt battery that might needs to be taken care of. For the combustion engines, we have our 12 volt chargers, both the consumer version and the client brand and the workshop. Then we have two other segments where we have more or less only dipped our toes so far. It's the recreational vehicle and leisure, a segment I know from my previous work at Dometic. And there we have today different products, but there is much more addressable market to go into. and then we have industrial that could be material handling or robots where we also have products today and so far quite a small footprint there is more addressable markets to gain if we look at the way how we go to the market we have two divisions one is the professional that are catering to the B2B. It's the client brand low voltage chargers and it's also our EVSE chargers. Customers could be the big OEM premium car manufacturers like Ferrari, Lamborghini, Porsche and also for the EVSE it could be parking operators, CPOs like Vattenfall, APCOA and others. Our biggest segment or division is when consumer, where we sell our consumer products in the low voltage. And their typical customers is e-tailers like Amazon. It could be distributors and also retail chains like Hyla and Mekonorme. And there we are having sales in more than 70 different countries. So if we then walk into the figures for Q3, It's a very stable quarter. We saw an organic growth of 15%. We increased our gross margin with 4.8% units to 56.4%. Adjusted EBITDA, 30 million. That was an increase to 13.6%. Q3 is our seasonally lowest when it comes to cash flow. We ended up in just minus 3 million compared to minus 14 million last year. EVSC share is 15% and we have a solid financial situation with a net debt ratio of two times. So I'm happy to see that we are following our strategy. And in phase two, we are focusing on organical growth. This is the second quarter in a row that we can show organic growth for the group. And the organic growth was, as I mentioned, 15%. We increased our profitability and we also saw the best ever third quarter for the consumer division. If we talk a little bit more about low voltage, this was the fifth consecutive quarter with organical growth and the four latest with double digits. The reason to that is that we have seen higher sales in our pro chargers for the workshop. We also see that our premium charger CS1 is selling very well. We see also that we're growing in client brand by the OEM. And we see that the focus sales activities are paying off. We are gaining new customers. We are growing with existing customers and we are taking market share among others by the e-tailers. So Tom, I leave it to you.

Yes. So some financials for the quarter. So I come to this very crowded slide with a lot of numbers and I repeat a little bit of what Henrik just said. We are happy to see the 15% organic growth on the net sales up to 222 million SEK for the quarter. And also, of course, happy to see that it has paid off in both higher gross margins, but also higher adjusted EBITDA from 18 to 30 million, which compares to 13.6% versus 9.1% same quarter last year. We have an item affecting comparability of 4.7 million, and that is only related to what we announced in last quarter, that we are moving our head office from Wikmansyttan to Falun. We still have it in Dalarna, but on another place. Coming to some more information from the divisions, as Henrik mentioned, we have a very strong quarter again for the consumer division, which stands for two-thirds of our net sales. Now coming up to 150 million for this quarter in net sales and a good adjusted EBITDA of 40% plus for the period. And again, continuous growth quarter on quarter. Coming to the professional division, obviously then standing for the one third or the other part of the net sales. It is an organic growth, even on a lower pace for this quarter. We are still, of course, not happy with that. We have a loss on the EBITDA level. But worth to mention here is that, as you recall, we did this reorganization to two divisions and formed a professional division in the middle of quarter three quarter four last year and as you can see on the graph on the bottom part of the slide you can see that they have a constantly improving margin from low levels but even so better without having any help from the volumes so with higher volumes on in the professional division we will turn these to positive numbers going forward Some words about cash flow and capex. Obviously, very important for us to keep under tight control. As Henrik mentioned, quarter three is a seasonally tough quarter for the cash. We are, however, improving from minus 14 last quarter three to minus three this quarter. You can see that we have cash and cash equivalents going from 144 to 98. That is actually just because we have amortized 100 million SEC earlier this year. It's number by number actually an improvement. I say and that also shows that we have now refinanced during quarter fee our credit facility with Swedbank and that is on this in the same amount as before 600 million sec we were free plus one plus one year validity on the down graph you can see that the capex as we have said before we have been on very very high levels we are going back now to more normal levels that will probably maybe continue to go down another percentage or so going forward but it's still high it should be high because we are a company that is have to develop new products all over time So by that, I hand it over back to you, Henrik.

Thank you, Tom. So as I mentioned, a stable quarter, second consecutive quarter of organic growth for the group, increased margins and a solid net debt ratio, strongest third quarter ever for the consumer division, and first quarter with organic growth for the professional division. And that makes the fifth consecutive quarter of organic growth for the low voltage business. So this picture I've shown a number of times before, this is our three phases that we're following. The first was stability, where we got our cost under control. And now we are moving within the phase two, where we have a focus on profitable growth. And this is the second quarter that we show organic growth. So we are well into that phase. And then later on, we will enter phase three with more accelerated growth geographically and product expansion and also investigate M&A possibilities and moving into other segments. So with that, I open up for questions.