Kjell Group AB

Good morning and welcome to this Q1 presentation for the first quarter of 2025 from Shell Group. In normal order, it is me, Andreas, together with our CFO, Thomas Persson, who will go through today's presentation. And similarly, we have a relatively short agenda with En kort uppdatering om kvartalet innan Thomas går igenom lite mer siffrorna i detalj. Och så avslutar vi med en Q&A. If we look at the first quarter, we can see that sales in the quarter went up to 561 million compared to 591 in previous years. The gross margin was improved somewhat with 0.2 points to 42.1, which led to a gross profit in the quarter of 236 million. Even the adjusted results in the quarter were improved somewhat and fell to minus 2.3 compared to minus 5.6 per year. If we look at the quarter in general, we are affected on all markets by an increased concern in the consumer leadership. The lighting we saw at the end of 2024 and the beginning of January this year has changed dramatically, and we saw consumer confidence during the month of March, especially in Sweden and Denmark, have fallen sharply. Osäkerheten hos konsumenterna har relaterat för vår del i lägre andel trafik till våra kanaler, främst då i Sverige och Norge, medan trafiken i de norska delarna av verksamheten är relativt oförändrad jämfört med föregående år. We see that we now, in the future, will have to deal with a greater uncertainty in the market, which makes it even more important for us as a company to be close to the consumer and focus on the things we ourselves can influence. During the beginning of the quarter, we have continued with the work and the initiatives that we have previously presented, where we focus on the things we can influence. connected to a lot of costs, but above all to develop assortment and offers to be close to the customer we have in the market. We look forward to more efficient cost base, it is incredibly important to come back to growth and find new customers, but above all to find profitable customers. In the meantime, the gross margin has had a negative trend, and for our part, it has been a great focus to turn back and find a stronger gross margin. Over time, we see that we will come back to the figures we have historically had of over 45%, and the joy that we see in the quarter is a reversal of the gross margin, and the positive work we have done within the assortment, but also pricing, gives results. Even in the future, it is back to what I just mentioned, to work with the assortment and get a more positive mix in the assortment in order to strengthen the margins further. And when it comes to pricing, just in an uncertain market that we see at the moment, pricing is incredibly important for our part to catch the consumers in the mentality that the customer is at the moment. And continue to work hard to continue to strengthen the gross margin forward. Then you can also say and comment a little about the margin in the future. And unlike many other companies, we may benefit from selling some of a stronger Swedish crown in the future. The majority of what we buy, and especially home electronics, comes from China. and is traded for the absolute largest part in USD. And as our business looks, we have a majority of our sales in SEC and NOC, which have been relatively weak for some time. We have seen here now, actually after the quarter's start, levels on SEC and USD, which are back on levels from 2020, which over time is a positive impact for för oss om den bibehåller den delen även framåt. Så vi är glädjande att se att bruttomarginalen vänder uppåt igen också. During the quarter, we have also carried out a priority emission. Even if it was a guaranteed emission from the start, the interest was great and something that we are grateful for. And the trust from both larger owners and from the rest of the stock market has been fun to see and something that gives us great confidence in our initiatives. It also gives us a turning point in strengthening our balance sheet, being able to focus on new opportunities. Because it is not only in an uncertain market that there are negative parts, but there are also great opportunities. And we see that with a strong balance sheet, we also give ourselves the opportunity to operate on new opportunities in the market that is given. Our new central warehouse is, of course, a clear example of this and an important piece of the puzzle for our future growth and profitability. During the quarter, we have started building both warehouses and automation, and it also creates great joy and faith in the organization, something that is important for us to continue to grow. If we look forward and at the initiatives we have previously communicated to drive up profitability in large, then it is just the assortment where we focus on the content in the assortment, adjust it to the consumer, pricing, but also the availability in the store, the availability of the right things when the consumer's mindset changes, something that is a major priority. The new central storage will give us the opportunity to become even more efficient through the entire supply chain and be more relevant to consumers with faster and better availability. We also see, if not that we have already made a lot of efficiencies in the central direction and in our stores, the possibility to continue screwing and above all create a better base when we come back to increased growth, we can also see a greater emphasis on the initiatives we have previously carried out. Internally, we also work a lot with processes to create an organization that is more effective moving forward. And finally, regardless of whether the market is worried at the moment, we see digitalization as a trend that will continue regardless of the market situation. The technology in everyday life is something that successively also becomes more difficult and more challenging for many consumers. There we see a clear way for Kjell to continue to work in this and drive development in home technology for people as a key for continued growth as well. And with that introduction, I think I'll hand it over to Thomas, and Thomas will go through the figures for the quarter in a little more detail.

Thank you, Andreas. Then we start with the sales, which increased to 5.61 million in the quarter, which is a decrease of 5.1% compared to the previous year. The sales and turnover are in line with the previous year, with a decrease of only 1%. Segment distribution of sales in the quarter corresponds to Sweden by 72%, Norway by 17% and Denmark by 11%. Compared to the same quarter last year, Sweden maintained its share, while Norway increased by 3% at the expense of Denmark, which is corresponding. Channel distribution for the group remains relatively unchanged compared to last year, where service points increased by 2% at the expense of online and other channels. The adjusted EBITDA quarter goes up to negative 2.3 million, which is 3.3 million better compared to the previous year's negative 5.6 million. The margin increased in the quarter by 0.5 percentage points, among other things due to the better gross margin. Comparison and increasing postage, which adjusts EBITDA, goes up to 4.9 million for the quarter. This is due to restructuring costs, reform of personnel changes and emission costs. We see a positive currency effect, as Andreas mentioned, of about 12 million when compared to the same quarter last year. The effect is explained by a strongly stronger currency and a stronger quarter. If we go over and see how our segment has performed, we see that Sweden decreased sales by 3.9% to 407 million. The decrease is primarily driven by fewer transactions in our service points, which is compensated by an increased average rate. Den justerade bitamarginalen förbättrades med 2,4 procentenheter. Norge ökade starkt med 8,8 procent till 94 miljoner. Tillväxten förklarades av ett ökat snittkvitto jämfört med föregående år, vilken delvis motverkade av marginell minskning av transaktioner. Den justerade bitamarginalen försvagades med 4,1 procentenheter. Segment Danmark minskade med 25,6 procent och uppgick till 61 miljoner i kvartalet. The reduction is explained by the low number of transactions, which is partly compensated by a higher average rate. The adjusted beta margin was weakened by 1.8 percent. The segment is still an integration to the Swedish organization, which has led to a temporary negative impact on the turnover. In the long term, however, we see opportunities for increased traffic acquisition and improved learning. The quarter was lower at the end of the year as well as the share of net revenue compared to the previous year. The cash flow from running businesses improved by 14 million compared to the previous year. The net debt increased by 28 million compared to the previous year. The financial net debt relation to the rolling 12 adjusted EBITDA after leasing rose to 4.7 from last year's 3.7 due to lower adjusted EBITDA after lease. Efter kvartalets slut, som Andreas nämnde, så förändrades vår fullt garanterade företagsemission. Totalt tecknade 27,8 miljoner aktier, motsvarande ungefär 99,2 procent av erbjudandet med stöd av täckningsrätter. Resterande aktier tilldelades investerare som tecknat utan stöd av täckningsrätter. Genom emissionen tillförs Shell Group 199,1 miljoner kronor för emissionskostnad. Detta stärker vår finansiella ställning och nettoskuldsättningen förväntas förbättras under kommande kvartal. Det var den finansiella delen, så går vi tillbaka till Andreas.

Tack så mycket Thomas. Bara kort summerar jag det jag sa innan, det är ju verkligen för källsdel och vårt laserfokus just nu ligger ju i We are close to the customer, understand the customer in this type of market with great uncertainty and our ability to adapt our offer to be relevant in it. As I said, we still see a underlying demand for electronics and the belief that it will continue to be strong is something that we are completely convinced of. Another focus for the business is profitability and to be more effective in what we do. We see opportunities to reduce costs, but above all to be more effective in the organization in general, and consequently to get a better margin the more we sell forward. So, as we mentioned two times now, one capital contribution also gives us an increased future faith, or above all increased turning point for us in the way forward. And the faith from the owner and staff in it is something that also gives us great strength in the work ahead. And we see with En försiktig positivitet på året framåt och framför allt kanske senare delar av året som vi hoppas vi kan få igenom ännu mer av de initiativen som påbörjats att ge effekt. Så det var en kort uppdatering av kvartal 1 från vår del och med det så lämnar vi över och tar emot de frågor som finns.