CTEK Ab

Please go ahead.

Thank you, operator. And once again, warm welcome to the Q4 presentation from CTEK. Today's presenters is myself and I also have CFO Tom Mathisen here with me. Before we start to jump into the results, I'm just going to give you a brief presentation of CTEK. CTEK was founded in 1997 by Bengt Wahlqvist, the inventor of the first ever battery charger to use electronic pulse technology. We are designing, developing and testing all our products in Sweden. We have competence centers in Vikmansyttan, Norrköping and Shenzhen. And we are producing in mainly Asia and Mexico. CTEK has a big business with client brand and we are chosen by the best. We have customers like you can see here in the picture, Lamborghini, we also have Porsche, Bugatti, Rolls Royce, BMW and 50 other premium brands. I'm very proud to have a CTEK name at the same product as the Lamborghini. Lamborghini powered by CTEK. I think that speaks loads of how strong our brand recognition is. We have mainly two technologies. We have the EVSE, which is chargers for electrical cars. And we have our low voltage, mainly 12 volts, chargers for the normal car battery. And we have different segments that we are serving. Many of our customers are using our products in many different applications. And we have products that are applicable for both Elec EV and plug-in hybrid. There we can use, of course, our EVSE charger, but also our 12-volt charger and the workshop chargers. For combustion engines, it's the 12-volt chargers and the workshop chargers. And we also have chargers that can be used in recreation vehicle and leisure. Motorcycle is a big growing business for us. And we also have chargers for the industrial sector. When we are going to market in mainly two divisions, the first one, professional, is our B2B channel. There we are selling our destination chargers to parking operators. And we also have our client brand, where we are selling to Porsche, Lamborghini, Corvette, and a lot of different other premium brands. In our consumer division, we are selling in retail through distributors, pure e-tailers and also to importers. So jumping into the Q4 result, we have a sales of 279 million SEK. The gross margin ended up at 49.8 adjusted EBITDA 25 million and we have a strong cash flow of 59 million SEK. The share of EVSE was 23% in the quarter and altogether we managed to lower our net debt ratio to 1.8. If we look at the quarter, we had a one-time buy from General Motors that affected our figures. And if we adjust for that, our organic growth was 5%. The gross margin adjusted from this one time order was increasing to 54.6%. The adjusted EBITDA was ending up at 10.2%, a little bit lower than the comparison quarter, mainly has to do with credit loss. and that some of our performance costs that we're paying to the onliners are not evenly distributed quarter to quarter so you can see the q3 we had a stronger result but there we had a little bit less of these performer costs but if you take it over a year it's on the same level as last year I'm very happy to see the continuous strong momentum in the consumer division. It was the sixth quarter in a row where we showed growth, organical growth. This quarter we had 7% organical growth and it was quite a strong comparison quarter as well. So I'm happy to see that we are increasing our market share and doing a good job there. We can also mention that we see a good demand for our workshop chargers, but we're mainly selling to workshops and they are used for when they're servicing both EV vehicles and combustion engines. Challenging marketing conditions for the professional division. My belief is that we have seen the bottom of the EVSE for CTEK. We are now introducing the CC3 with positive comments from our customers and we are opening up markets like UK and hopefully in the end of the year also Germany. So we are well into delivering on our strategy and we will happily invite you to a capital market day on May the 22nd in order to explain our next steps. So with that, I leave the word to you, Tom.

Yes. So we continue with some overall comments on the financials and the first bullets that did a bit of repetition from what Henrik already said. We have an organic growth of 5% excluding the GM last time by. We have increased the gross margins as well, and we had adjusted EBITDA margin that is around 10.2%, lower than last year, as Henrik mentioned. But if you see all the year, it's more or less Quarterly, how we split the cost of the performance cost, how we receive that costs, that is not fully even over the year. The full year result is 3% below last year, 9.8 versus 6.7. We have a little bit higher share of EVSE products in this quarter if you compare with the GM numbers, but without the GM numbers, it's basically on the same level as last quarter for 16% versus 15%. As you have seen, we have a quite large item affecting comparability, 90 million, related to the ended collaboration with General Motors. I would like to mention that this is a conservative approach and potential upsides in the final negotiations with GM will be reported as positive items affecting comparability. If you take a look at the respective division, start with the professional division that stands for two thirds of other net sales and mainly with the low voltage products. We can see, as Henrik mentioned, the 7% organic growth from a strong quarter four last year to an even stronger quarter this year. The adjusted EBITDA is a bit lower in this slide than on last year, but that is again related to performance cost coming not evenly over the year and the underlying margins, both gross margin and EBITDA margin are stable. Professional division. bit more of a challenge than in the consumer division. It's one third of our turnover. It was an increase organically with 95 million, but impacted on the last time buy from GM. The adjusted EBITDA number wise is on the same level as last year and a less bad result than quarter four last year. However, we would like to say that this quarter was impacted by this low-margin sell to GM. It was also impacted by that we are selling out slow movers, some of the variants of the CC2. That is obviously better than scrapping them. And we have also taken the provision for credit loss, as Henrik mentioned as well. So we see that we will come back on the blue line in the lower graph. That should turn upwards again and hopefully pass the zero line during the next year. Then some words around our cash flow and capex. Again, on the full year, we can say that we have a net cash that is the most important because it's money we have left after the investments is on full year level 54 versus 53 last year. It was also strong improvement during quarter four with a positive net cash of 42 million. We have... Cash in the bank account on 142 versus 192 last year. But during the 2024, we have amortized 100 million. So it's in fact an improved cash position. And again, our leverage has decreased from 2.7 to 1.8. This is well below the financial targets of three. CapEx level, as we have shown over the quarters, is now going steadily back to more normal levels. 8% is a peak of 12%. And we expect that to continue to be on these levels of 6% to 8% over the years to come. So with that, I hand over back to you, Henrik. Thank you, Tom.