FM Mattsson Mora Group AB (publ)

God morgon allihopa och välkomna till vår presentation av tredje kvartalet 2024 här på FN Mattsson Group. Vi som presenterar idag är vanliggårdning Erik Sterp som är CEO för koncernen. Jag och Martin Gallagher som är CFO. Vi tar oss igenom ett bildspel här och lite avslutande. and it is worth recapping how we work in the company. We currently have six product brands that we run our sales and business within. This product portfolio and the brands make us a good breadth and depth to work with our customers in the Nordic market and also our international markets, especially in Western Europe. And looking at how the third quarter has gone here, I see that it has been roughly in line with what we expected and when we summed up the second quarter, and also in line with that we then saw a continued challenging market and conjecture for us. When we sum up the sales, we can now see that we have a reduced sales with a little over 4%. Then we see that there are quite big differences between our two den geografiska områden där den nordiska marknaden hade ett betydligt tuffare tredje kvartal och försäljningen minskade med 8,6 %. Medan i vår internationella affär så höll vi försäljningen uppe bättre och landade på 1,4 % upp i försäljning. Sedan har vi en påverkan på vår vita marginal som en följd av den sagade försäljningen. Vi ser där ett marginal som uppgått till knappt 90 procent jämfört med motsvarande kvartal 2023 där vi var uppe och nosade på 12 procent. Det som vi tar med oss när vi tittar på våra marginaler är att vi kan konstatera att vi i kvartalet har en bättre bruttomarginal. Vi kan också se att vi har engångsposter båda de här åren under tredje kvartalet som påverkar och Martin kommer in lite mer på det alldeles strax här. Then, of course, we are actively working with our costs to handle the lower sales volume that we have seen during the third quarter. We also think that we have a good control of the cost level. Then it is with the connectivity level we have that we continue to work actively with different forms of cost efficiency in all parts of the company. And if we look at the market situation, we see that there is a continued challenging conjecture and a warning for our customers to invest in, especially in bathrooms and kitchens. And we generally see that in all of our countries and customer segments. Then we can see some differences, but in general we see that this is a challenging market and, as we talked about earlier, a little tougher in the Swedish market, especially in the in the third quarter. And we also have a hope that a slower inflation and also a rate level that starts to come down will be able to create a little better conditions and optimism for our customers to invest in the future. But we think that we will face a relatively tough situation in the current situation, a bit into 2025. and makes us as an organization continue to work clearly and intensively with different efficiencies to improve the situation. At the same time, we want to highlight that we also want to prioritize growth opportunities. We see a number of market segment where our quarter has moved forward our positions and taken market share and we see continued opportunities linked to it under the coming quarters, and this is primarily also connected to our international business, so we are taking this into account for the future. When we sum up the third quarter, there are also some highlights and successes we want to share with you, and which are in line with our strata on the island, but also with the connection areas we are in. En viktig del är såklart vårt produkterbjudande som vi har till våra kunder under kvartalet. Här har vi lanserat en ny serie för varumärket Mora Armatur, en serie som heter Mora Lynx, som talar mycket design för de mer inredningsintresserade kunderna och med en tydlig fokus på hållbarhet i den produkten. Vi tror mycket på den för framtiden och det känns kul att kunna ha släppt den i marknaden under det tredje kvartalet. En investering vi också har jobbat med en stund här är att fortsätta vår fina utveckling för Damixa på exportmarknaden och framförallt i Benelux-länderna. Det vi nu har under tredje kvartalet är en ny Damixa Experience Center i Holland. En tydligare plats för att kunna ta emot våra kunder och visa våra produkter och föra kvalificerade affärsdiskussioner. Så det ser vi också som en. trend during the quarter, which I think we will feel good about in the coming quarter. We have also worked a lot with the cost issue during the quarter. We have a production in Mora that has also been affected when the volumes become lower, so we have worked actively with different forms of cost adjustments, both directly in production and in terms of our supply, but also with other costs that are related to the business.

Ett arbete som har börjat visa resultat och som vi fortsätter jobba med under kommande kapital. Jag släpper över till Martin som får gå igenom siffrorna mer i detalj.

Tack Fredrik. Som ni kan se har vi minskad omsättning med 4,4 % eller 20 miljoner kronor och det motsvarar 2.6% organically with budget changes, part of the difference there. But we have managed to increase our budget margin. This is partly due to the product mix, how we have worked with purchasing and product savings, även att vi har sänkt våra personalkostnader i fabriken i Mora. Det har tillkommit engångskostnader om cirka 2,5 miljoner kronor under kvartalet. Men trots det har vi som sagt blivit en procentenheterförbättring på bruttomarginalen. On the other hand, for EBITDA, it is a reduction from 53 to 38 million kronor, which mainly depends on our other revenues, which were 13 million kronor last year and almost zero this year. And it was electricity support that we have helped with 2023 of 7.6 million kronor, as well as value-added profits that we did not see during this period. Absolutely, yes, that is the biggest winner there. And if we go on to look at the quarter, the estimated result, there we have 5 percent reduction in sales, both in absolute terms and organically. But we see for the whole period that we have a certain improvement in the gross margin for the same reasons that Jörg has explained, but the delivery part It came more during the third quarter, and it was the rest that we saw earlier this year. And on the cost side, in addition to these entry-level positions, there are higher costs for research and development, both of screening of launched products and arbete som har ökat samt vid vissa administrativa kostnader. Därför har vi den här utvecklingen. EBITDA som underliggande har minskat från 192 till 148 miljoner. Then, if we look at the cancer flow, this is a joy to say that there is an increase there. Again, this is the highest level if you look at the cancer flows from the current business, in parentheses, as it has been during this entire period, as you can see here. It is much thanks to our work with laws som vi har sänkt värdet på med 70 miljoner kronor i år och nu är det på en nivå som vi kan hålla ungefär med vissa säsongsvariationer under det kommande året och vi ska fortsätta på längre sikt att jobba med

of structural improvements so that we can lower the levels a little more.

And yes, it is our strong cash flow that has contributed to the reduction of net debt, as you can see here. Inräknat här är utdelningen, den andra delen av utdelningen som vi kommer att betala under november som är 53 miljoner kronor.

Men vi har fortsatt i princip fria externa skulder, det är 8 miljoner och leasing skulder som vi har.

Then, if we look at outcomes versus goals, we have the goal of growing organics by 5% per year under a conventional cycle. Now we are on a low conventional cycle and we are, of course, under the goal with, as I said, 5% minus in organic growth for the first nine months of the year, and the EBITDA margin is 9% compared to the year before, 15%. The reason is that it has survived, and the solidity continues This is our financial result and statement. I'll hand it over to Fredrik again.

Thank you, Martin. We have worked for a long time with our strategy with the five islands to move forward both in the short and long term. The goal is to drive wage growth. As we have been talking about, and organic growth. But we continue to work with our customer service. We think that we are in a position where all of our brands and production programs are well invested. It feels very good that in the third quarter we can strengthen the further expansion of our product line, which we hope will be a Nordic market. Then sustainability is also an important theme for us as we want to work with our daily business and to take new steps and an area that continues to grow in importance for our customers and, above all, for our Scandinavian customers, as we have seen in the last quarter and the last few years. So it is still an important, prioritized area for us. Likewise, when it comes to digitalization, both to work with digital tools to become more effective in our internal business, but also to be able to meet and long-term tools. Then, considering the current situation, we have a lot of focus on efficiency on our own, and this year we have worked on a dedicated way to drive different forms of cost efficiency. It feels fun that it also gives results, and that if we continue to work actively in the coming quarter, to meet the conditions we have. Of course, it is important that we have more workers and a way of working that is characterized by motivation and high engagement, and that we strive to tackle both the challenges and opportunities we have as a company. Our strategy for development is fixed and helps us move forward in the current situation. And as we start to sum up the third quarter of 2024, as we have mentioned, it is still a challenging situation that we have noticed in the third quarter and that we are a bit expecting. And our assessment is that it will continue to be quite tough. Again, with the hope that it will start to turn the picture around with positive signals from our different customers. Also a good cue to press on as a business that we lyckas hålla uppe och till den stärka bruttomarginalen under kartalet och under året. Sedan som vi var inne på så fortsätter vi att utveckla vår produktportfölj och jag tycker att vi står oss väldigt starka där och sedan fortsätter vi att se hur vi kan krydda upp det här ännu mer för framtiden. Just nu och kommande kartalet fortsatt fokus på kostnadseffektivisering som vi var inne på tidigare. Och det var de bilderna vi hade tänkt att dela med oss av idag och nu finns det möjligheter att ställa lite frågor. Så räck gärna upp handen och slå på er mikrofon så ska vi göra vårt bästa i att besvara. Jag tror vi fick en här från Mats Liss.

Får du gångligt ljud? Do you hear anything from Mats? Do you hear anything from Mats? If you can double-check your microphone. Let's see if we can get the technique to work better here so we can solve it.

Mats, if it's possible to write your question a little short in the chat until next time. We're trying to solve the sound problem here.

Vi kan svara på den. Vi har en fråga från Agnes också. Vi kan se om vi har bättre lycka med ditt ljud. We have a hard time with the audio.

Please feel free to ask any questions in the chat. just like I just thought of them.