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.