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CTEK Ab

Q22026

7/17/2026

speaker
Henrik Freeneus
CEO

Thank you, operator, and a warm welcome to CTEK's quarter two earning call. Today, it's me, Henrik Freeneus, CEO, and I also have Tom Mathisen, CFO, as presenter. And as usual, we will start with a short recap of CTEK introduction before we dig into the numbers. So CTEK was founded more than 25 years ago in a small village in Vikmanhyttan in Dalarna by Bengt Wahlqvist. We have mainly two technologies and sub-segments. The first one and our heritage one is low voltage where we are selling consumer chargers, client brand chargers and professional chargers and also power solution. The other segment is for electrical cars where we're selling destination chargers, also client brand destination chargers, load balancing and service and support. We are going to the market through two different divisions, consumer divisions where we are selling mainly low voltage projects and we are selling through A lot of different channels. Some example is Amazon, also retail chains like Klaas Olsson, Jula, GPC, and it's a global market for us. The other one is then professional division where we are selling into vehicle manufacturers, our client brand, and also to short point operators and parking operators, our destination chargers. And it's also a global market. We are happy to be chosen by more than 50 of the world's biggest and most prestigious vehicle manufacturers. including Lamborghini, Ferrari, General Motors, Porsche, and BMW, and a lot of others. I think that speaks a lot about our quality and the trust that these premium brands is putting into Seatech. We have a lot of different products, premium products, and we have a large and very attractive market. With our introduction of boosters and power solutions, we have more than tripled the addressable market for CTEK. And here you can see the segments where the different divisions are in and also the different products. So coming to the highlights then for the second quarter of 2026. Despite a somewhat weaker sales, we had a very strong quarter when it comes to profitability. The gross margin was up to 65.7%. We had a good EBITDA, a good EBITDA, and a strong cash flow. And that all resulted in a very strong financial situation within Ab Ab Ab Ab The somewhat weaker sales was coming from client brand. And it's not that the market for client brand is weakening. It's more of a ordering pattern, a change in the ordering pattern from some of our biggest customer in the client brand. And my belief is that this will be of temporary nature and it will be neutralized in the second half of the year. So it is very strong margins despite lower sales volume and the quarter two is seasonally weaker. And as I mentioned before, the order patterns within client brand has also is also part of the reduction in revenue. But despite this, we have very strong margins and the improvement in gross margin is coming from a huge part of the higher share of consumer sales. And it's also a favorable mix, both when it comes to products and geographies, which are helping the very good gross margin. And together with good cost control, it's also coming down to a higher EBIT A percentage. During the first half year, we have introduced more products than we have done during the last five years before. So we have a very strong product portfolio and a very good outlook for ahead. We are also happy to share that BMW, a long-trusted partner to us, have chosen the CS1 Generation 2 with Wi-Fi connection for their client brand going forward. We also see a positive cash flow and a very solid financial situation. The net depth of 0.7 gives us a lot of possibilities to grow both organically and through selective acquisitions. As we mentioned last quarter, the strategic review of the EVSE business is ongoing and is proceeding according to plan. And with that, I'll leave it over to you, Tom.

speaker
Tom Mathisen
CFO

Thank you. So some more digging into the numbers. And as usually, we go through the divisions a little bit more in depth, starting with consumer division, which stands for 70 to 75% of our turnover. Here we managed to have an organic growth, as Henrik mentioned before, driven quite a lot by the new products we have launched the recent half year. Also strengthened EBITDA margin compared to the same quarter last year, coming again from both good gross margins with a good product mix, geographical mix, but also continued good cost control. And in the graph, you can see what Henrik also mentioned, that the quarter twos are generally lower than the other quarters, but still keeping up the good margins. Going over to professional division, again, it's a new pattern of ordering from our client brand. Some of our client brand customers has meant a decrease in net sales. on the low voltage side of the professional division, whereas we are at same level in EVSC as we were last year's quarter two. After a little bit of a deep quarter one in the margins, we have regained and are on positive levels again, thanks to also in professional division, good cross margins and continued good cost control. So some words around cash flow and capex. I start with the graph on the below part of the slide. You see that we are down to 4% of revenues now in so far this year. We have said before that we should be in the range of 4% to 6%. And we also mentioned during quarter one's call that We ended some big development projects at the end of last year, beginning this year, and that meant that it is a little bit low on the new ongoing development projects. They will start to pick up, so you can expect somewhat higher, but within the range of 4% to 6% for the second half of the year. So as Henrik mentioned, good cash flow continued, 25%. Ab Ab Ab Ab Ab Ab Ab Ab Ab Ab Ab Ab extended our credit facility so it's now valid until September 2029. So with that I hand it over back to you Henrik.

speaker
Henrik Freeneus
CEO

Thank you very much Tom. And then to summarize the second quarter, as we mentioned, it is a seasonally weaker quarter. And also with the change of ordering patterns from client brand, it was a bit weaker than the comparable quarter. But despite this, we have shown very strong margins and good cost control and delivering a solid result. A lot of new product launches that has been very welcomed by the market make a strong partnership with BMW. Makes me believe that the second half will look very good. We have positive cash flow and a solid financial position, which create freedoms to act both in organical growth and M&A driven growth. And the strategic review of the EVSA business is proceeding according to plan. And with that, operator, I hand over for questions.

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