Garo Aktiebolag (publ)

Welcome everyone to the presentation of GARU's report for Q3 2024. My name is Patrick Andersson and I'm the CEO of GARU and with me today I have Helena Kleisson, our CFO, to present the financial performance. Next slide please. Let's start with an introduction. GARU is a company founded in 1939 that develops, manufactures and sells innovative products and systems for electrical installation and their own brand in European markets. Developing products that are at the forefront has always been a significant aspect of our success. Our focus is on developing user friendly and safe products with a modern design and long service life. Next slide please. We have two business areas, GARU Immobility, which consists of the Immobility product area and GARU Electrification, which includes electrical distribution products, project business and temporary power. As you can see on the chart, we have operations in several countries on the European market to meet the demand and to serve the customer in the best way. We also sell in other European countries where we do not have own subsidies. We have production facilities in Gnorsjö and Hillestock in Sweden and in Poland where we have invested the last years to meet the long term demand for both GARU Electrification and Immobility. And we are approximately 400 employees in the group. Next slide please. In the Immobility product area, we develop and market all types of vehicles. We have product and turnkey solutions for destination charging for various locations, including at home, in public, at workplace and along the highway. To make the Immobility business even more complete, we also offer a service agreement to assist our customer in a good way. We believe it's important to make life easy for the user to make it possible to charge in locations where people live and work. This area accounted for 28% of the total sales. Next slide please. The largest product area in GARU Electrification business area is electrical distribution products, which consist of approximately 3,500 products as well as turnkey solutions for the electrical installations markets. Product use daily in different applications such as new buildings, renovations, marina, camping sites, industry and Immobility solutions. This product area contributed for 46% of the total sales. Our product business area provides complete and customized solutions for all types of power supplies for apartments, single family homes, industry and Immobility solutions and accounted for 23% of the sales. The temporary power product area, which has a product portfolio consisting of temporary electricity, lightning, heating and charging products used on construction sites and events accounted for 3% of the sales. These four product areas make GARU's offer unique and easy for the customer. An example is when the customers require charging solutions with different charges and load balancing from Immobility and also requires power supply from the project business as well as safety installation products from electrical distribution products. This makes it easy, simple and safe for the customer and end user. Now over to Helena for some financial updates. Next slide please.

Thank you Patrick. I will start by looking at the financial summary for the third quarter. Net sales amounted to 270 million, a decrease of 11% compared with the same quarter last year. Sales within GARU electrification decreased by 4% while GARU Immobility posted a 26% increase in sales. The markets of both business areas continue to remain cautious where the lower sales in the quarter were mainly due to the cool market within Immobility. The adjusted operating profit amounted to 0.4 million compared with 5 million for the same quarter last year. During this quarter we have made a write down of 48 million for slow moving inventory. The write down was mainly attributable to the business area GARU Immobility and pertains to previous generation charging boxes and development costs for an older outgoing DC range. Quarter on quarter however adjusted EBIT for the third quarter of 2024 improved with approximately 5 million. Operating profit for the quarter came in at negative 48 million. And now over to you Patrick for some operational highlights and other news. Next slide please.

Thank you Helena and before the operational highlights we also announced this morning through a press release that we have recruited Jonas Klaren as a new president and CEO for the Infratech Group. Jonas has also extensive experience from the energy and power supply industry and successfully developed Infratech within Vinci energies. He has also worked at ABB earlier in his career. Jonas will assume the position as president and CEO as soon as possible but in the six months at latest. Next slide please. And operational highlights and let's start with the GARU Immobility. Overall sales in the field of new technology encompasses product and service for example solar batteries immobility where there is a considerable need in the Nordic region and in the European transition to the new technology. The prevailing macroeconomic situation has led to a considerable slower transition than expected leading to us taking significant actions which I will return to later in this presentation. However we have chosen to focus on the business available in the require we'll create the conditions for our customers and GARU to generate business. Demand for public charging points drives sales in the business area. GARU Entity Pro accounted for half of the sales noted in the business area during the quarter which clearly clearly indicates that GARU's new platform is appreciated in the markets. In order to strengthen our offering for the home market GARU launched a new version of Entity, GARU Entity Home which is fitting complete complement to our previous version of Entity Pro and Compacts. The wall box is specially developed for the home market and for the connected homes and customized functionality and it's cost efficient charging which we have compromised on safety and has been well received of the markets. In addition GARU also launched a payment terminal creating a complete range for the customers need to comply with the requirement of AFIR regulations. GARU's effort to achieve an ICHREST approval GARU Entity's platform as well as certification of the production facility in Poland to meet the demand for ICHREST requirements are continuing according to plan and is a part of the establishment of the German markets. We go further on with GARU electrification. The construction of new housing in the Nordic region has declined considerably and new production of single family homes and apartments is expected to be weak throughout 2024. Positive signs such a lower inflation and falling interest rates are expected to lead to a gradual recovering in housing construction during 2025 which means that we know assess that the bottom has been reached and GARU's housing related products. In Ireland which is an important market for GARU both the market and GARU performed strongly during the quarter. This was a result of the success of the market initiatives and an expanded product range. We are noting continuing healthy demand in the public sector commercial properties industry and infrastructure combined with the investment for renovation and energy and chasements and the market connected to the electrification of society is also assessed to be stable. Sales has now stabilized and GARU noted several positive signs in discussion with customers that strength our assessment that the market has bottomed out. We expect the market situation to improve moving forward. Growth and profitability. In September we announced that GARU would expand its action program in GARU immobility business with annual savings of approximately 40 million SEC. In October we complete the trade union negotiation reducing the number of employees in the group by 28 which primarily involved white collar employees. The savings from personal expenses achieve full effect in the first quarter of 2025. In addition to the organization changes we also implemented a number of other cost saving measures larger involving the considerable reduction of purchased consulting services. During the quarter GARU has incurred 48.4 million SEC non-recurring costs primarily related to GARU immobility business area. This right down mainly pertains to components and inventories for earlier generations of wallbox and outgoing DC range. Heal and I will return to this for more respective business area. The three product areas including electrification together with immobility create a major synergy effect and provide a stable foundation for GARU operation which is particularly important during time of sluggish demand in some product areas. And now over to Helena. Next slide please.