ITAB Shop Concept AB (publ)

Hi, good morning. Good morning to everyone. I just want to give you some information about myself. I stepped in as interim CEO on January 7 to replace Andrea Selgard and I will be interim CEO until end of April when Björn Borna will step in. Just a few words about myself. I started in this industry in 1979. So I have a 47-year experience until I was CEO at La Fortezza when in 2016 we sold to ETAB. Then I stayed in ETAB. I started as a CBO, Chief Business Officer for South Europe. Then from 2019, I was Senior Vice President South Europe. And then from 2023, I was Senior Advisor. And then from January, as I say, I am now Interim CEO and President. I just want to give some information about ETAP Group because I don't know if everybody knows about us. After the acquisition of HMY, now we have around 24 production facilities in 17 countries. We have around 40 operations plus in different countries and we have around 5,300 employees. Our net sale, our revenue is 13 billion SEC with 847 million adjusted EBIT that is around 6.4 adjusted EBIT margin on our revenue. Our main customer groups are grocery, where it is the major one, where we have around 51% of our sales. Then we have DIY and home improvement, where we have around 10%. Then we have fashion, apparel, 12%, health and beauty. It is around 6%. Then we have other customer groups that makes around 21%. Our solutions are in retail interior, that is our major brand. We have retail technology, retail lighting, retail services. In Intab, for sure, what we say is that we try to rethink retail together with our customers. So we try to work with them. We try to understand how to deliver what they want, what is their expectation. And I think today with our portfolio is so intensive, so wide that we really can help them in many, many different solutions. So now I end to Andreas Ellerson.

Thank you, Gladko. Good morning, everybody. Looking at the highlights from the Q4 report, I would like to put some focus on stable sales, some growth in Q4, and also a stable earnings trend in relation to last year. We see an extraordinary strong cash flow in Q4, which is also something we've been indicating, especially driven by accounts receivables releasing. We have a continued focus on synergy execution with year-on-year operating expenses being reduced as well as procurement synergies becoming more difficult. We also have a clear plan for the future and next steps of the synergy plan are being planned and will be launched starting this year with full impact of the synergies in 2027. As always, to give a representative view of the development of the group, we have mainly focused on the performer development in this presentation. In the interim report, of course, published now, you will also see all the details, including reported figures with HNY consolidated from 1st of February. If we zoom out and look at the historical performance, we can see that 2025 has been a stable year with regards to sales growth. Despite significant currency headwind, we have 5% growth excluding currency. And focus has been on business continuity for us due to this very significant acquisition. And we've also executed on the low hanging fruit with regards to synergies. And we've laid the foundation for future synergies as a new group together. Profitability in 25 has been stable, slightly behind 24 when we had some extraordinary projects, especially in Spain, but also Middle East. In Q4, EBIT adjusted for non-recurring costs and amortization of acquisition-related intangible assets amounted to 199 million SEK, in line with last year's performance. Looking at the financial highlights for Q4, we can see that net sales is down 6%, but significant currency effect from the euro to SEK, and if excluding that, it's actually up 3%. At the same time, adjusted EBIT is stable, impacted positively by product mix. Our loss prevention rollouts in both Europe and Australia has helped us, as well as early synergies on productivity and procurement scale. It's worth mentioning also that Q4 is normally somewhat weaker than Q3 with the grocery volume. We have a December month with Christmas, where it's difficult for us to be in the stores. Given the slightly lower volume, that's always sort of part of our seasonality effect on gross margin. Focus onwards is to continue execute on synergies. Majority of the synergy realization is expected for 26 and 27. Improving our cost efficiency, where we have several initiatives planned for the first half of 26. and to continue with the turnaround activities in France and Turkey, which is a real driver for Yebit, but also to become more tax-efficient, if possible. In 2025, we have set the foundation for synergies, as well as executed on some within a special organizational efficiency in procurement. And for 26, the execution will continue, of course, to both those initiatives. But at the same time, we will increase focus on cross-selling, 2025, the cross-selling initiative built the foundation where we train each other on our portfolios and also built joint showrooms across the group. We will also plan for the next steps of the Synergy execution, which is soon launched. We'll focus on select markets such as France and Turkey, where potential is high. If we look at our net sales by customer groups, we can see that our largest sector, grocery, shows slight growth, excluding currency effect, and that home improvement due to sales continues to grow double digits if excluding currency effect. This is especially driven by our clients in Southern Europe. Fashion was stable in Q4, if excluding currency effects, but we had a decline in the health segment, where we had exceptionally strong Q4 last year with some one-off projects. The other segment showed a larger decline as we had exclusivity on a few larger international rollouts last year due to design and development work. Looking at our geographies, we see that Q4, we had strong development in both Central Europe, Southern Europe, and also UK and Ireland. So it's good to see the UK and Ireland really being back on track and showing growth again. Eastern Europe and Northern Europe declined, partially due to strong comparisons, but also lower activity in specific key accounts, and especially Eastern Europe. The rest of the world declined due to large amount of projects in Q4, especially in the latest. Our operating cash flow for Q4 came in at 821 million and rolling 12 at 785 million. Obviously, we have not shown performer numbers here for cash flow, but just showing it. And it was impacted positively by NetWin Capital development, as we also indicated in the last earnings course. We saw a release of account receivables driven by of course the strong increase we saw in Q1 and Q3 and then normal seasonality where we do see a peak in September, October and those payments normally come in around Christmas and then And then December is a week a month since we're not really allowed in the stores due to the Christmas shopping. So that's our normal seasonality. And we've also had select initiatives focusing on both factoring and improving payment terms. Now we're twice the size and we're becoming larger and improving our purchasing power and also our power with our customers. During 2026, we will continue to leverage pockets of best practice across the organization with regards to capital efficiency, where we see that the strength of our new group will help us through procurement power, financial market attractiveness, and consolidation of both inventory and supply chains. Zooming out a bit from the Q4 result and returning to what we have previously said about our plans and merger implementation-wise. During 2023, Legacy ITAB had adjusted EBIT margin of around 7% and Legacy HNY around 5%. This was then leading us to a combined margin of around 6%. We are now at 6.4%. This is around 11 million euros up versus the 2023 baseline. As we have said and guided for the synergies, we expect a full effect starting from 2027. There is a strong strategic rationale for this acquisition, as well as it being financially attractive. With synergies identified at 30 million euros, increasing our net income with 90%, with only 16% share dilution, all other equal, it indicates significant earnings per share growth. And with that, I hand the word back to Glocko Fassbord.

Yes, thank you. Priority, I want to talk a little about priority for the future, but I want also to underline that, as Andreas mentioned before, that for us the acquisition of HMIs has been very strategic. And I think that we have a lot of opportunities in the future together. because they can bring to us a lot of competence and we can bring to them the same. So we can be really very strong together. And I think we have a very strong team to take care about this integration. So what we want to do for sure is to sustain the existing business with customers, as I say, but also improving our portfolio, our possibility to be more attractive for our customer. and also establishing common financial reporting and securing the legal compliance. We want also to establish a common organization. So we want to establish organizing structure, exploring wanted leadership and cultural behaviors. Also, I want to underline here that for us, people are the most important things because we give a lot of attention to them. And I think only thanks to the people you can grow in the business. deliver, we want to start to deliver, continue to deliver the synergies, starting to realize procurement, commercial and SG&A synergies, developing also common strategy priorities. Our main priorities also is anyways to, as we say, better together, better together means to be together, to work together and also have a common way of working and try to be performant as much as possible. So this is our strategy for the future. As I say also, we want to continue to be focused on the integration because we have to realize, as Andrea Sermon said before, 30 million expected in 2027 to finalize these synergies. We want to measure to improve our profitability continuously, assessing the implemented if needed in all parts of the group. Efforts also to reduce our tied up capital and debts and also launch of shared values and cultures, way of working and strategic teams and priorities for ETA group in 2026. Presentation of the group joint expertise and solution to the retail market on Euroshop on 2026 from 22nd to 26th of February. that for us will be very important because it's a very important exhibition and the first time that we'll be together with hny so i we end our presentation if there are any questions