Kjell Group AB (publ)

Good afternoon and welcome to this presentation of the Q2 report for Shell Group. In addition to myself, our CFO Thomas Persson is with us today during the presentation. In normal order, we will have a short summary of the quarter before we move on to a short question time. If we jump into the report, we can see that we have had a challenging quarter behind us, where sales during Q2 decreased by over 10%. At the same time, we saw that gross marginals improved by 1.5%. till 42,2 procent vilket vi såklart ser positivt på. Det justerade resultatet för kvartalet landade på minus 9,2 jämfört med 0,3 föregående år och resultatet för kvartalet landade på minus 20,9 jämfört med 18,4 tidigare år. To briefly summarize the quarter, there are two things that stand out. First, AV cables and a very weak sales in the quarter, but let me get back to that. And partly a weak cash flow, where we see a temporary deviation under Q2 that affects the outfall in the negative quarter. cash flow, it is of course affected by a lower sales than we had expected in the quarter. And partly by a larger increase in storage before the summer season, where we see, among other things, that we are selling expensive egg brands in the form of robot grass clippers, among other things, but also more expensive robot vacuum cleaners. Vi har också en hel linje med nya produkter av egna varumärken som har kommit in under kvartalet och påverkar kassaflödet. Vår bedömning är att denna uppgång i lagret är tillfällig och vi förväntar oss en positiv återhämtning av det under Q3 och fortsatt över slutet av året. In line with what we have previously presented, investments continue in the new central storage outside Malmö's plan, which also affects the cash flow in the quarter. If we then move on to the segment, and as mentioned, we can see that the big challenge with the Danish business in the quarter, where sales are falling by almost 50%, and is the big reason behind the company's sales drop in the quarter. Sales in Denmark are mainly explained by lower traffic and worse conversion in Sweden. The reason behind this, of course, has been several different parts, where the challenge with accessibility in relation to the integration we are doing to the central business of the subsidiary company in Denmark, also shows that the effects from the change of e-commerce platforms that were done earlier during the year have not yet fully received the effect we expected. In combination with the Danish market, we continue to see a rather pessimistic consumer, where price pressure from competition of low-price actors from foreign low-price actors also affects. Further initiatives have been initiated to improve both e-commerce platforms and ensure good accessibility. Our hope is that the Danish business will be more positive during the rest of the year. Moving on to Norway, we see a stable sales. that the Norwegian consumer is more positive, especially in categories such as smart homes and robotization, which we see working very well. Despite the hard competition on the Norwegian market, we assess that we continue to take the market to Norway. Challenges for us are still the relatively weak Norwegian currency, something that we work with with pricing to further strengthen the margins in Norway. The Swedish market for home electronics continues to be quite wait-and-seek, and it primarily affects visitors, both in digital channels, but especially in physical stores. At the same time, we see that when consumers buy, they are willing to spend more money, something that is seen through an increase in the average. The Swedish industry also sees a very positive sista delen, framför allt i kvartalet. Någonting som vi såklart ser väldigt hoppfullt på framöver. Given the weak development in the quarter, we are of course still serious about the situation and together with the board during the quarter expanded the initiatives that have already been initiated and to ensure that all parts of the company ensure that we quickly return to the previous profitability and reach our long-term goals. I would like to mention some of the initiatives that som tidigare har presenterats och redan är igång, så har vi bland annat, som vi kommenterat, en ny vd som kommer in här med start i september. Vi har igång med byggnationen av ett nytt automatiserat centrallager som kommer att få stor positiv effekt på vår effektivitet genom hela supply-kedjan. Under the quarter, we have launched a new program for more in-depth sortiment oversight, where, among other things, negotiations with suppliers, rental values and the like have been launched in the quarter. And the same thing, that we continue to be very close to the Danish business to evaluate that we are coming back to a good solution. And together with the board, as I said, we are very close to see if we need to expand these initiatives further forward. At the same time, we see that the initiatives that we have previously launched are beginning to give positive effects. We can, as I said, happily see that the growth rate will improve in the quarter to 42.2%. At the same time, we see that a lot of work remains, and above all that there is a lot of potential left to deliver on when it comes to the margins. Even on the cost side, we see positive indications, where the cost per share has dropped by over 10%. And the same thing as with the margins, we see here as well, en stor potential i arbetet framåt, att vi kan fortsätta förbättra effektiviteten i verksamheten. Och för att gå in ännu djupare i siffrorna så tänker jag med det att jag lämnar över till Thomas för en mer djupgående finansiell genomgång.

Tack Andreas. Then we go into the sales. The sales increased to 530 million in the quarter, which means a decrease of about 10% compared to the previous year. The sales and rolling figures show a decrease of about 4%. Segmentsfördelningen är lik tidigare kvartal där Sverige är störst följt av Norge och Danmark. Jämfört med samma kvartal föregående år så ökar Sverige sin andel med 4 procentenheter, Norge ökar med 2 och Danmark minskar med 6 givet det stora omsättningstappet som Andreas var inne på. Kanalfördelningen för gruppen håller sig relativt oförändrad jämfört med föregående år. Storage points of Click and Collect ökar med 4,1 procentenheter på bekostnad av online, vilket även här speglar minskningen i EV cables. Justerade bitar i kvartalet uppgår till negativa 9,2 miljoner, vilket är en minskning på 8,9 miljoner jämfört med föregående år, positiva 0,3 miljoner. The EBITDA margin has decreased in the quarter with 1.8 percentages. The lower margin is explained by lower sales in Sweden and Denmark. The cost savings do not correspond to the reduced sales in full, and we evaluate open measures if the trend continues. Total value and cost effects in the quarter rose netto to minus 2.5 million, which can be compared to the same quarter previous year with positive 2.2 million. Om vi går över och ser på hur vår segment presterar. I Sverige minskade försäljningen med 6 % till 396 miljoner. Minskningen drivs av färre transaktioner i våra service points, vilket delvis kompenseras av ett ökat snittkvitto. Den justerade bitamarginalen försämrades till minus 2,4 %. Norge växte modest med 0,6 % till 93 miljoner. Tillväxten förklarades av ett ökat snittkvitto jämfört med föregående år. Den justerade bitamarginalen försvagades till 1,2 %. Segment Danmark decreased by 50% and rose to 40 million in the quarter. During the quarter, as Andreas mentioned, we have seen difficulties in the traffic acquisition due to the increased integration and competition from foreign actors. The adjusted margin was weakened to minus 1.6%. It is time to raise our faith in the plans for the segment. Despite the challenging period, we see opportunities for value creation in the segment, and during the quarter we have made large repositioning in the assortment. The mentioned temporary effects in the stock market result in higher core working capital, which at the beginning of the quarter was higher in absolute amounts, probably as part of the net turnover compared to previous years. Kassaflödet från den löpande verksamheten uppmätte negativa 136 miljoner för kvartalet. De tidigare lägre varinköpen och utbetalningar kommer medföra en god förbättring i kassaflödet under kommande halvår. Nettoskulden ökade med 34 miljoner jämfört med föregående år. Finansiell nettoskuld i relation till rullande 12 justerad EBITDA efter leasing vägde till 6,1 från förra året sträckte med 9 till följd av en lägre justerad EBITDA efter leasing. Detta är långt över vår målsättning och ambition, speciellt efter avslutad ny ambition. Vi är dock trygga i vår skuldsättning och ser att kvartalets strategiska insatser kommer att innebära en lägre skuld för hela året 2025. Innan jag avslutar så vill jag passa på att tacka dig Andreas. Det blev fem kvartalspresentationer tillsammans och vi kommer fortsätta att arbeta ihop, men stort tack och tillbaka till dig, tack.

Thank you, Thomas. To conclude, I would like to thank myself, given that this is my last quarterly report as CEO. And a really big thank you to all colleagues, customers, owners and partners we have had throughout the year. For my part, two decades, Michelle, and even though I am satisfied with the results of the report we are presenting today, I am incredibly proud of the journey we as a company have made during these two decades, from a smaller family business to a Nordic stock company. So a big, big thank you for that. Back to the source, my thoughts on that, I still see it as bright. In a society where digitalization is faster than ever, I see the need for technical guidance, smart products that are incredibly big in the future. I am convinced of the reason for the bright future of the source. Even if I see a challenging climate in the short term, which requires addressing and a good navigation to turn the trend that we now see in the company, I want to come back to the importance of what we are really standing for in building revenue, building clarity in what kind of company we are, where the assortment is the backbone. and, as always, in retail, to be relevant and to be able to win the consumer long-term. I will now hand over the lead role to Sandra Gad. Sandra is a fantastic leader and the right person to navigate the field forward. Personally, I look forward to continuing to develop the field and our offer together with Sandra. just to say that instead of a source, everything is the obvious choice for solutions within technology in the future. So with that, we conclude this presentation and then we will move on to a short question time. So feel free to send in either via chat or questions and we will answer them. Thank you very much.

Under frågestunden kan deltagarna ställa frågor genom att trycka fyrkant 5 på sin telefon. Om du vill dra tillbaka din fråga, vänligen tryck fyrkant 6.

Yes, vi kan se att vi har ganska få frågor idag. Vi misstänker att vi som de flesta känner till så är ju idag en dag där halva börsen rapporterar så att vi misstänker trycket är högt där ute på alla andra rapporter också. Men den frågeställning som kommit in är kopplat till lagret och hur sommarförsäljningen påverkar av det. Vi har ju som vi kan konstatera haft en ganska mediocre sommar i in May-June and of course that has had a certain effect on sales, especially in June, of summer products. Now we see that we are more in a summer period and just as Thomas mentioned earlier, we are positive about being able to sell those products and expect a positive outfall of lagret framåt istället, framförallt jämfört med Q3 kanske förra året. Och ja, som sagt, sista rapporten för min del så stort tack för den här tiden och får passa på att önska alla en fin fredag en fortsatt god helg när den kommer. Tack så mycket för att ni lyssnade in i dagens call och så hörs vi framåt. Ha det bra!