ITAB Shop Concept AB (publ)

Welcome to ETAB Shop Concept Q1 Report 2026 presentation. During the Q&A session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the speakers. Interim CEO and President Glauco Froscaroli and CFO Andreas Helmerson, please go ahead.

Good morning, good morning, everyone. We are here today to present our Q1 2026. I just want to give you some information for the people that doesn't know ETAP. So I want just to tell you about our production facilities. We have around 22 production facilities in 16 countries. We are operating in more than 30 countries with around 5,300 employees. Our net sales is around 13 billion SEC with our ADK around 835 million SEC. Our BDA margin is 6.3%. We, our division are a grocery that is around 51% of our sales. Then we have fashion that is around 3% of our net sales. And then we have DIY home improvement around 10%. And then we have health and beauty 6% and then other customer groups that is around 21% where we have consumer electronics, travel details, sport and leisure, services, stations, hotels, offices and brand industries. Our solutions are retail interior, retail technology, retail lighting, retail services. We think for sure what we, our brand, our strong brand is Rethink Retail Together. So we create a retail experience that connects people with the brands they love. I want to just give you some highlights of the Q1 2026. We had the solid start of the year in the commercial market. Our Q1 net sales are around 2.9 billion SEC, that is around 7% currency adjusted. minus 7%. Adjusted EBITDA is around 164 million SEC, 192 million SEC was the previous year, excluding non-recurring items, amortization of acquisition related to immaterial assets. Net profit is 70 million SEC, is higher comparing to last year, to last quarter 2025, Q1 2025. Our cash flow operation is 214 million SEC. We improved margins with purchasing synergies and lower SG&A expenses with a strong cash flow and profitable growth in focus. Here I want to underline that I think that in one, We have done a great job because I think we have to be positive on what we have done in Wuhan because all of us know that we are facing a difficult situation in the economy worldwide due to the war in Iran. and other and other things that are not helping us a lot but i think we really are proud of what we have done we can do better for sure in the future but we are we are positive what we have done if we look to the role in 12 months net sales are 12.8 billion sec comparing to 13.2 billion SEC in 2025. Our adjusted BTA is around 800 million SEC comparing to 835 million SEC in 2025. We have our plan of 30 million EUR in synergies that we have to complete by end of 2027 and we are working and we are also positive on that. Saying this, I pass the word to Andreas Hermes, our CFO.

Thank you, Glauco. To give a representative view of the development of the group, we have, as usual, focused on the performer development in this presentation. In the interim report published, you will, of course, find all the details, including reported figures with HNY consolidated from February 2025. In the historical performance overview, we are comparing EBITDA development over time. And this is very similar to the EBIT figure that we previously showed during 2025, where we also excluded amortization of acquisition-related intangible assets, which is more an accounting term than it's not an actual cash flow or cost in a sense. So we will look more at EBITDA onwards. Adjusted EBITDA in Q1 came in at 164 million SEC relative to 204 last year. Q1 is normally a softer quarter for us due to seasonality of store operations. And this year, we also see a general slowdown across sectors. So it's not in one country or in one sector, but across many sectors. And at the same time, we have managed to sustain margins due to synergy execution and initiatives. Q1 performance sales development of minus 12, but if excluding currency effect, it's minus 7%. And this is the main sort of driver of the drop in EBITDA for the quarter. In the report, you can also see that our net profit was 70 million SEK, and this is higher than last year, coming in at 41, driven by lower adjustments of non-recurring costs, but also an improved tax rate. Net debt was also further lowered in Q1, and is now at 2.1 billion SEK, down from 2.3 end of 2025. Looking at the quarterly development over time, we can see that despite an organic sales decline of minus 7%, gross margin was actually sustained and also a beta margin if adjusting for extraordinary costs and provisions affecting comparability. And this, the impact from the sales decline is mitigated by impact of synergy execution, where we estimate to be circa one third into the program from a TNL perspective. Zooming in on the sales development, our organic growth rate currency adjusted now, we see that sales were lower across most of the sectors, reflecting a hesitant market where projects have been either put on hold or pushed into Q2 or Q3. And we don't see signals of losing market share. That doesn't happen very quickly and very often at all in this industry. But we do see a weak general market temperature. Our largest sector grocery is holding up somewhat better. This is normally what we see when uncertainty increases in the economy. Grocery is still a bit stronger and less cyclical. The US-Iran conflict is, of course, impacting the decision power of our customers in general through higher transport costs and inflation and uncertainty, general uncertainty about the outlook of and the impact in our economy. And at the same time efficiency and loss prevention solutions are really driving growth for us also in q1 and it remains a pocket of of growth and we see this strong interest especially in gynosing gates and self checkouts and not the least as a result of a participation at the euro shop where we saw a strong interest in this part of our offering and in general those product segments were of highest interest across the visitors we had at the Euroshop. From a geographic standpoint, we saw a mixed development in Q1 with strong growth in some regions, such as the Nordics, where we can also see that underlying growth in the market is very strong. While Southern Europe is down 9% here, we actually saw a mixed picture also there where Spain and France were very strong, with France being due to some local market dynamics through acquisitions, especially in the grocery market where they are rebranding stores, and also the fact that we are sort of gaining some market share due to very local production facilities, but also strong relations in this sector. So that's been great to see. And Spain has also been very strong, while Italy has been very weak. And it's not just one sector, but it's across customers and across sectors. And then Eastern Europe is down quite significantly here, 35%. But it's mainly driven by a few larger customers, where the rollouts have slowed down compared to last year. On the contrary, we see growth in Australia, driving the rest of the world market, where we continue to grow our portfolio of customers, which is great to see. And at the same time, also increasing the depth of these relations. So we're buying more products and a wider part of our portfolio, and especially in the retail tech segment. Looking at the development of EBIT A a bit closer and comparing it to the quarter one last year, we see that sales volume is impacting us negatively with circa 59 million SEK, while margin and mix is holding up despite lower volume in the factories. And SG&A is also neutral despite inflation and some extraordinary costs in this quarter. And actually, our result is in line with last year if we adjust for extraordinary cost and items affecting comparability. And we see this as a signal that our synergies are being realized and that we're on the right path towards continued execution of the synergies, which will prepare us to capitalize on the market when the growth returns. Our operating cash flow for Q1 came in at 240 million SEC and rolling 12 at 973 million. This is impacted positively by working capital development, where we have continued to see a release of account receivables and a strong focus on inventory management and payment terms generally across the group. Our net debt is also down in the quarter, now at 2.1 million SEK versus 2.3 in Q4. And this is driven by our profitability, lower non-recurring costs, and improved working capital, as we saw in the last slide. In Q1, we estimate that we are circa one third into the execution of a synergy program as previously stated. The total synergy potential remains where we have communicated 30 million euros per year with full effect in 2027. Synergies come 20 million from cost efficiency and 10 million from commercial synergies. Cost overlaps, as well as some of the larger procurement categories, has been the low-hanging fruit that we prioritized so far. And in parallel, we have assessed our manufacturing and logistics network to make sure we can capture opportunities. And we've also spent time building the foundation for commercial synergies by investing in Salesforce training, showrooms, and cross-selling plans. Of course, we're looking forward to continuing updating you on this progress and our general business performance onwards. And with that, I hand over to you, Glauco Fasca-Årlegen.