FM Mattsson Mora Group AB (publ)

Hej allihopa och välkomna till presentationen av första kvartalet 2024 för FN Mattsson Group. Vi som kommer gå igenom bildspelet här idag är i vanlig ordning Dag Fredrik som är vd och konsernchef och min kollega Martin.

Hej, jag är Martin och jag är CFO.

And we will start by looking at how the first quarter has gone and before that we will look at and remind you of the portfolio of brands we work with actively in our daily business and we are a corporation that consists of six product brands, which is what is most visible to our customers. and a portfolio with six brands that we take and control against different art segments and geographies, especially in the Nordic market, but also in Western Europe. And then we look at how it has gone here during the first quarter, so I can summarize the heading as if it had been a mixed start of the year with some different signals. If we look at our sales in the group for all brands, it decreases with in the first quarter of 2023. Then we see some differences between our different geographical areas. The Nordic home market lost about 10% in sales compared to 2023, while our business outside of the Nordic, which we call international, weakened sales-wise by about 4%. And here we can see some differences between the different countries where we, in the first a weaker market than it has been before. Of course, the weaker sales also affects our profitability. If we look at our EBITDA margin, it rose to 10.8% during the first quarter, which is a fairly clear decrease compared to when we landed in the first quarter of 2023, which was almost 15%, which is the company's overall profitability target. However, I think that there are some things to take with us here. We manage to keep the gross margin in line with last year. There are some variations behind the figure between different parts of the company. Several brands strengthened their gross margin, while we mainly had the most challenging in our factory here in Mora, which is affected by the lower sales and some challenges to keep productivity at the level we had earlier. During the first quarter, we also see that we have slightly higher sales costs. We have made a conscious decision to build markets in the long term and move our market positions forward. So I think that with the sales and sales situation in mind, that we deliver a good bit of margin. It is hardly under 11%. What we also take with us as something positive and is our continued strong cash flow. Then it is also so that we look at the comparison with the first quarter of 2023, then we can also note that sales- and profitability-wise it was a very strong quarter that we compared ourselves with, so we take that with us in consideration and look at what we ended last year, then we see a relatively good start for many in many aspects during the first quarter here. Then there is a lot of focus on the market situation itself, of course, with the connection we have had through our segment during 2023 and which we have also seen has been challenging here during the first quarter of 2024. And we see a tough market and There are some nuances in this as well, especially the new construction related side is something that has the most challenging and we also see a part of this more consumer related renovation project that it is more waiting. What is worth mentioning and highlighting is that we as a company have our The biggest exposure to what we call renovation and renovation and relatively little on new construction. We estimate it to be about 80-85% on the renovation side and the remaining part on new construction, which is a strength in this connectivity situation where we see that this renovation market and especially with professional actors keeps up a more stable market that we see benefits several of our brands. I also think that there are a lot more positive signals about the future, much linked to the general news flow that inflation is starting to be eliminated and that we have expectations of some interest rates drops that we think will be able to get a little more speed on the market in the long run and get a little more confidence in our customers to start up some projects again. And I also think that we As a company, we are well positioned regarding our growth opportunities. Even though the market is tough, I think we have moved forward our positions in many different local markets and that we have six product brands that are well invested for the future and are above all well positioned when the market starts to develop better. Then, of course, there is a period where we continue to work with A lot of internal efficiencies to see if our costs have continued and find improvements to meet the generally lower demand we still have in the market. There is a lot of positive things to bring with us from the first quarter. If we look at the first quarter, it has been a quarter with many trade fairs and product launches. important strategic initiatives that we have worked with in the long run to strengthen our different brands, so it just goes here. And it has been a successful effort for Aquala and Adamsys at a fair called KBB in Birmingham here during the first quarter and also launched for us a completely new product category in the company as you can see in the picture here with The solution itself behind the wall with steel frame and what is called a water cassette behind and also this track plate. So it's an exciting new product category that Aquala is getting into here and got a good first response from the customers in Great Britain and Ireland where we launch this and focus right now. So we take that with us as a good step forward here during the first quarter. We have also been in Milan at the big global interior trade fair, Salone Del Mobile, and presented Hotbeth, in order to build the future of Hotbeth as a brand, both to show up for existing customers, but above all to find new customers internationally. And in connection with this fair, we also launch our new product series, Hotbeth Ace, which we believe will be a strong addition to Hotbeth as a brand in the future. And not so long ago, we ended up in the big Nordbygg trade fair in Stockholm, for the Nordic construction market, and showed our three Scandinavian brands, together with Moda Armature for Mattsson and Damixa. Also there, I thought we had a very positive response from our customers about what we have to offer them, and we also present some news, mainly related to the brand. tillkommer, Moramix och Lynx som vi också ser mycket fram emot här för framtiden. Så flera bra saker under första kvartalet som vi tar med oss för framtiden.

Nu får vi kolla lite mer på siffrorna. As Fredrik said, we have a lower turnover than the previous quarter. And the change is minus 7.5% there, but we have a Bruttomarginal, which is in line with last year. And there we have a product mix that has involved improvements that we have made with the purchase of products. At the same time, we have a negative effect from the lower volume, especially in Sweden, where we have our production. And then there are both higher costs in relation to sales, which has affected EBITDA and the EBITDA margin, which is just under 11%. development, especially sales costs have increased. We have more sales and higher marketing activity. But if we look at a more Long-term trend, we look forward to 2022, where we had good growth and then we had a stable turnover. trots den tuffe marknaden. En sak som är väldigt glädjande är att vi har haft ett så starkt kassaflöde under denna period. Man ser 2022 att det inte var lika starkt. Då byggde vi lager på grund av leveranssvårigheter. Men vi har lyckats få ner lagernivån igen till en mer vanlig nivå och det har hjälpt oss att leverera ett starkt kassaflöde och som innebär att vi har minskat vår nettoskuld också successivt de senaste två åren. So it's only minus 105 million in net debt. And basically no bank debts. And also a stable solidity. And we have some financial goals that we follow. Den organiska tillväxten var ungefär i linje med den totala på minus åtta procent. När vi kollar på ebitda marginal på rullande tolvårsmås, nu är vi strax över tio procent. um har vi råd att betala samma utdelning som förra året så det blir 72 % av resultatet för 2023 som kommer att betalas ut i två steg i maj och november And as I said, we have strong solidity as well, strong will and clear over our goals.

Thank you, Martin, for the closer look at the figures. And if we look forward, we will continue to follow the strategy we have worked on for a few years and which we think is a good support and a clear direction for us forward. It feels even more important, of course, when we have a 2023 that became more challenging in terms of connectivity than we thought. And also here, a tough start to 2024 and probably will continue for a while at least. But we continue to work with our strategy to drive towards profitable growth. And our five different building blocks in our strategy, which is a lot about what we offer our customers, to be far ahead on the sustainability side, to come up with improvements in terms of digitalization opportunities, efficiency, of course, and then that we are a good employer and a good team internally to work with all our employees and the culture we have within the company. So we will continue to work with this. Then, of course, based on situation and the development we see, there will be a little more focus on efficiency continued forward here to be more precise when it comes to our costs and how we use the money in a smart way here in the future. And should we go in here and start summarizing the first quarter, it is of course very much linked to the sales situation and the general situation has been A challenging start to the first year, as we see in our figures, especially in the Nordic region, and especially the Swedish business, which is a large part of our total sales. It looks a little different, as I said, between some different segments, but we still think that we can see and hope for some light flashes here in the future, even if we assume that it will continue to be tough in the coming quarter. And that also means that we continue to work actively with cost efficiency as a focus area in the entire business. However, we continue to invest in our brands and our product programs. There are six brands that we think are very strong and we have invested very well in over the past few years and are well positioned to to take place in the market and when it starts to draw to be able to be part of the growth that we believe is underlying in the market and actually in all different customer segments and In the countries we are in, we see that there is a great underlying need in all those segments and countries to both build new and renovate existing bathrooms and kitchens. And of course, we want to be part of the process with our offers for attractive design and sustainable solutions for our customers. And next week is the year's vote here in Mora. Then we have in this forum two additional occasions for 2024 to look forward to two more reporting occasions. And then when we're in 2025, it's a little bit about what the calendar looks like when it comes to the financial reporting. And that was our last picture for today. And with that, we're going to hand it over to Frågestund for those of you who have listened.

Om du vill ställa en fråga, tryck fyrkant 5 på din telefon för att ställa dig i kön. Om du vill dra tillbaka din fråga, vänligen tryck fyrkant 6. Nästa fråga kommer från Mats Liss från Kepler Kevrö. Varsågod.

Tack Mats Liss, Kepler Kevrö. Ett par frågor från min sida då. Man ser hur... One factor that a lot of people talk about is the Easter, that there was a first quarter effect this year. Has that had any impact on you? Or are there more limited effects?

We can see that there is a Easter effect in the first quarter. The Easter came earlier than last year. It was a bit different from the period we compared ourselves to. We experienced that March was a bit calmer for us, but also for most people in the industry, that there was a clear Easter effect. So it's there for us too. Then it's hard to really estimate, but we can say that three or four working days disappeared when you just look quarter by quarter. Så den satte ner försäljningen något i första kvartalet för oss här i år.

Sen var du inne på att ni har varit med på en hel del mässor. Har det varit fler än Milano var första gången ni var med? Annars är det ett normalt flöde kan man säga. Eller har ni haft en större insats i år?

No, it is a relatively normal flow. We have tried to refine our presentation about these fairs. In Milan, it was actually the second time we were with Hotbeth as a brand. Otherwise, it is a trade fair that we usually participate in. Then they happen in different intervals here. They do not come so close. These are important times for us to be seen. to meet both new and existing customers, which we think has come out well this year.

So that means that we have several trade fairs this year, several major trade fairs this year, than last year, because they don't happen every year. And the costs for these are both Q1 and Q2.

But it's more long investments, so it's not like you're expecting to see a bigger effect already in the coming quarter.

It's not a trade fair where there's direct sales, but it's a lot of indirect influence that takes a little time and puts a lot of focus on presenting our news, which we see generally have a little longer in-sale, so we're not going to expect any immediate is to build both new and existing customer relations in the long run.

Then I thought, UK, there you have the platform you have created there. Do you feel that in some areas there has been a slightly improved development in the UK? Känner ni av det också eller är det försiktigare inom badrumssegmentet?

We think that we generally have a good sales development in the UK and also in Ireland, which is one of the main markets for Aquala and Adam Triss. And there we have invested a whole lot to take land, and especially in the UK we are still a very small shareholder and the work falls well out and we continue to focus on it. However, we see that in the segments that Aquala especially those who are more in retail towards the private sector. So it's a little more careful with investments. There are a little fewer people in the stores and you may not invest as much money in your different bathrooms. So we notice that, but we think we compensate quite well with the fact that we are in a situation where we are a small shareholder with room to grow and have invested in a more efficient sales core.

Jättebra. Jag har funderat lite på kassaflödet. Ni har ju rörelsekapitaleffekter. Det har minskat jämfört med förra året. Finns det mer att göra där? Har ni hittat en så bra det kan bli nivå?

Jag tycker nu är det på en A sustainable level is something that we can always continue to work with. But it is somewhat more difficult now with longer delivery times from Asia again. there has also been a certain currency impact there which means higher value if we had the same currency rate as we had at the end of last year so it has been a good development Vi ser inte att det finns lika mycket potential som det var för ett år sedan. Vi har sänkt det med cirka 80 miljoner under den perioden.

Leveranskedjan i övrigt, är lagren i balans mot de större grossisterna?

Yes, I think so. In a way, I think it's a good balance. There are some nuances in it, but on the whole, it seems like a more normal flight.

Okay. Thank you for now. I'll be back in a moment.

Thank you, Mats. As a reminder, if you have a question, Tryck fyrkant 5 på din telefon. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Ja, om det inte finns fler frågor så får Martin och jag tacka för oss för den här presentationen kring första kvartalet och hoppas att ni har uppskattat den och att vi hörs igen när det är dags för presenter det andra kvartalet som då blir 27 augusti. Så tack för nu allihopa och ha en trevlig sommar.

Tack Anna.