CTEK Ab

Thank you, operator, and a very warm welcome and good morning to CTEK's Q1 report earnings. Today doing the presentation is me, Henrik Freienius. I'm the CEO. And together with me, I have Tom Mathisen, CFO. And as usually, I will start with a brief recap of what CTEK is before we drill into the numbers. So CTEK was founded more than 25 years ago in a small village called Vikmansyttan in Dalarna by the Swedish inventor Bengt Wahlqvist, who made the first smart battery chargers. So that's where we have built our company on those inventions. We have today two different technologies. We have our low voltage technology and we are selling that in the consumer segment, in client brand segment, in professional for workshops and also in power solution. And the other technology that we have is for EVSE, that's for charging of electrical cars. And we're mainly selling that into destination chargers We have divided our company in two divisions, the consumer divisions that are responsible for the sales to a lot of different channels like e-commerce, Amazon and normal retailers and wholesalers. And we are targeting globally markets. The other divisions is professional division, where we are focusing on our B2B business. That is mainly our OEMs, big sport car manufacturer and car manufacturers, and also for the electrical car chargers, parking operators and destination. That's also a global market for us when it comes to client brand. We are very proud that we have been chosen by more than 50 of the world's biggest and most prestigious car manufacturers. They are using our chargers and put their brands on it. Here you can see that we are in the premium segments and a lot of our products are sold to the same customer segments. And chargers and boosters are sold in a range of different segments. And then our new adjacent power solution is sold also to some of the same customers. And EVSC destination chargers is mainly focusing on parking operators and destination charging parking garage. So digging a little bit deeper into the first quarter of 2026, despite a lowering revenue, we increased our gross margin and our profitability. And we have a very healthy cash flow, which helped our financial situation and our net debt ratio is going down to 0.8. We have also in this report said that we are doing a strategic review of our EVSE business. The background to that is that, as we mentioned in the Capital Market Day last year, we are moving into two adjacent segments in the low voltage business. That is premium boosters and power solutions. Now, after a while, when we have been working in that, we see that there is large potential for us in those segments. And we want to focus our limited resources into that. At the same time, we see, despite the leading EVSE product portfolio, we see a weakening sales development. our main market is sweden and that is at the moment a bit saturated and there is needed to focus more in germany and uk and we believe that our focus could be better spent in the low voltage segment so we are starting a strategic overview and We believe that we as a company can create high long-term value by fully focusing on our low voltage business. And with the financial stable situation that we have now, we are fully prepared to invest both organically and through M&A into this field. If we look into the quarter one, we had a very good profitability and especially cross margin. That comes from Bigger sales, larger sales in the premium charger in the consumer segment. The consumer division growth with 9% organically, which I think is good for the market condition that is today. We see that our new products that we have introduced are very warmly welcomed by our customers, and we continue to invest in the consumer division. In the professional division, we saw lower sales. depending on a weaker EVSE performance, but also very strong comparative quarter for the low voltage client brand, where last Q1, we have the first deliveries to a new motorcycle company. But we see a lot of interest into the new products like our CS1 Generation 2 with Wi-Fi for our client brand customers. So long term, it looks good there as well. With that, I leave the word to you, Tom.

Yes. And so digging a little bit deeper into the financials, I first go through the divisions. And our largest division is the consumer, now standing for 76% of the net sales. And here we managed, as Henrik just mentioned, to increase organically with 9%, driven by the new product launches and the positive development across several regions around the globe. We continue with high adjusted EBITDA, which amounted to... 57 million or just about 40%. And that is driven by both a good product mix, including the good margins on new product launches and also a good geographical mix. And on top of that, good cost control and relatively low OPEX. Continuing with professional division, standing for 24% of our turnover this quarter. It declined organically as the reasons as Hendrik just mentioned. The continuous week EBS market, but also the strong comparison quote for the low voltage part of the professional division. So by that much lower turnover, we cannot manage to keep the positive EBITDA. But the negative EBITDA is purely related to the lower revenues. Then one of our major focus areas for now and back in time as well is the cash flow and capex going forward. And we had strong cash flow this quarter. We had operating cash flow of plus 61 and also after the capex still 54. million in positive cash flow, net cash flow. The capex, as you see in the graph on the lower part of the slide, is pretty low in the quarter. And that stems from that we just finalized at the end of last year, two large product development projects and now are in startup phase where we don't capitalize in this first quarter and going into new product development projects. So the 4% is not a representative value. I believe we will go to the 6, 7% as from quarter two and onwards. But the strong cash flow has also meant both in quarter four and now in quarter one that we have increased our available cash and also did another amortization of 50 million SEC in the quarter. And again, with a low net debt ratio now below 0.8, we feel that you are in a good financial situation and well prepared for all M&A activities going forward. So with that, I hand over to you again, Henrik.

Thank you, Tom. So just to conclude the Q1, despite a continued challenging market environment and lower revenue, we managed to keep up the gross margin and our profitability. And we also grow 9% in our very important consumer division. We had a lot of successful product launches and we look forward to seeing them developing. and we also then released that we will do a strategic review of the EVSE business in order to better be able to focus our resources on our core low voltage business. With the strong financial situation we have, we are prepared to invest both organically and in M&A's to increase our focus there. And we are following our strategic path towards our financial targets. And with that operator, I open up for questions.