speaker
Susanna Hillesko
CEO and Group CEO

Hej och välkomna till denna presentation av Lammholtz Design Groups andra kvartal 2024. Mitt namn är Susanna Hillesko och jag är vd och koncernchef i Lammholtz Design Group. Och vid min sida har jag Jesper Langebro, vår nya CFO.

speaker
Jesper Langebro
CFO

Tack Susanna. Ja, Jesper Langebro heter jag. Jag har varit här i lite mer än en månad och ser fram emot att vara Susannas parhäst. in the future.

speaker
Susanna Hillesko
CEO and Group CEO

Great. And then we go into the first picture, which briefly presents the group here. You who follow us know who we are. We work in the furniture industry, design furniture, 280 employees. We work with two business areas and eight brands. Om vi går vidare till första halvåret i 2024 så kan vi bara konstatera att vi har både ett väldigt svagt kvartal och även halvår bakom oss med ett resultat som vi verkligen inte är nöjda med på något sätt. Samtidigt så konstaterar vi att vi gör väldigt mycket ute i verksamheten för både resultatförbättring och tillväxt framåt. These activities, initiatives and measures actually include all parts of the business. Here in the picture you can see examples of what we address. Both the revenue side, with revenue from sales, makes us relevant to the customers. The cost side, both OPEX, but also the way to work and buy in production. We aim for marginal improvements that we have already seen in the last few quarters. We work a lot on working capital, supply chain production. We look at the organization. We are dealing with digitalization issues with targeted efforts with the customer in focus. And we also look at how we present ourselves on the market. With these words, I would like to say that we follow the plan that we have set up to aim for a result improvement during 2025 and then create the conditions to reach our goals during 2026. And then the question is, what happens in the business when we say that a lot is happening and maybe not so much is visible in the figures yet? Then we give some examples of the larger issues that we address and that we have carried out or that are ongoing. We went out with a reduction in production capacity in land-holding furniture for an adjustment to today's sales act. We did that here during the spring after Q1. We now also state that we finally have a complete consent in place per June, here when Jesper started June 1st. This means that Beatrice Skottne-Hendriksson, who started in February as CSO in the group, came in here during the first half of the year. Beatrice has also had a double role here during June, which you have probably seen in the press releases, where she comes in as the executive director of Lammholtz-Möbel. We have Heidi Nist on site, who started in March, will soon be from Vitra, and is now the director of Floraform in Norway. We have Jesper, who was presented here in the presentation, who started the first of June as CFO for the corporation. With that, we feel quite complete and feel that we can move forward with focus on the improvement and change measures that we have addressed. We have also, here during the month of June, carried out a WD change on lamppost furniture. Due to that, we have så har vi då också utnämnt Mattias Ekberg som interim försäljningschef för Namnhus. Vi håller på med effektiviseringar inom produktion, LIN här liksom, och produktionsadministrationseffektiviseringar med hjälp av mjukvara IMOS på Ragnas. Dessa åtgärder är pågående och har kommit en bra bit på vägen och syftet är att vi ska framför allt skapa more production capacity for future investments. We have also carried out a branding strategy project at Ragnas, which we have been working on since last autumn, and it creates conditions for Ragnas to improve its position as a premium brand on the international premium market. Vi håller på även med riktade insatser inom digitalisering där vi har kunden i fokus hela tiden. Det är ett område som vi tyvärr ligger lite efter på och känner att vi här under kort tid behöver komma i kapp rejält vad gäller att göra oss relevanta, lättillgängliga och snabbt fotade när vi är i försäljningsprocesser mot kund som är både återförsäljare och arkitekter. Vi kommer att jobba med Picon, vi håller på med Revit-filar och vi som sagt förbättrar effektiviteten i er beredningar på IMOS med hjälp av IMOS på Ragnars. Och detta är alla insatser som kommer stötta oss på vår väg mot ökad tillgänglighet, effektivitet och försäljning. Vi håller på också med ett affärssystemsbyte inom Affärsområdet Library och det är då is also linked to the inner efficiency that will benefit the customer. And apart from these measures, which are a bit more in-depth, which are done behind the scenes, but which create conditions for growth and results improvement in the future, we have seen in many contexts, both at trade fairs and various events around the world. It has been a very tough six months when it comes to marketing. We see that in terms of cost time. But it's something that needs to be taken into account with the measures we make on the efficiency side. And with that, I'll leave the floor to Jesper here to come up with some figures.

speaker
Jesper Langebro
CFO

Yes, I'll take you through this journey. A little bit like Susanna mentioned, we have a result or rather a turnover that is slightly lower than the previous year. Vi nådde 212 miljoner på hela koncernen, ner 8 procent. Om vi tittar på de olika affärsområdena– –så är det fördelat på 151 miljoner för Office– –och 61 miljoner för Library. Där har vi tyvärr en lite större minskning i Library– –än vad vi hade sett framför oss. And that's a trend we see in the library, that it takes a little longer to get orders that we're working with. And we saw that already in Q1, and it has continued in Q2. However, in Office, where the decrease is not as big, However, it is the same pattern from Q1 that almost all of the reduction lies in lamppost furniture and especially in the Swedish market. In Q1, there was a big drop from Q4 earlier this year. We do not see exactly the same pattern. If you look at the diagram, you can see that Q2 is in line with Q1. Det är ett gott tecken, men det är i alla fall så att den minskning vi har sett inte har fortsatt lika drastiskt som under Q1. Går vi vidare i presentationen och tittar på orderingång, så är det även där en minskning. Den uppgick till 241 miljoner, en minskning med nästan 3%. However, here we see a small change for Office, which is implementing an increase of 4% to 162 million. And it is Abstracta that is doing very well in the last few months. And again, Lammhuls Möbel, which has a weaker development. On Library, as we mentioned at the beginning of the order, there is a slower pace, a certain uncertainty on the market that makes the decision take longer time and what we register as orders. And there we decrease with 14 percentage units. Again, we are working on these issues and are looking forward to implementing more orders in the next quarter. Let's take a quick look at the order stack. For Office, it is also an increase, just like the order entry, and goes up to 120 million. And for Library, we have this decrease we are talking about, also at the start of the quarter, and we are up to 69 million. All in all, a development that we are not really happy with, quite simply. If we move on to the result, unfortunately we end up with minus 13.6 million. This is in line with the same quarter last year, but of course in no way something we are happy with. If we look at some things, it is actually that the gross margin is improved. And if we look at Office, we have an increase of 3.2 percent, which we are very happy about, because it gives us a good place to stand when we are working to increase sales. And of course, the volume drop is what affects us the most. And it results in us reaching 9.3 million minus for Office. A small improvement compared to the previous quarter. If we look at the library, we also have a small improvement in gross margin. But just Library has had a tougher quarter of sales, a greater decrease, and unfortunately, they are just below zero in turnover. If we move on, we come to the cash flow. Det är ju inte heller någonting som vi är riktigt nöjda med, för att vara helt ärliga. Det är ju uppdelat i tre delar kan man säga. Vad gäller den löpande verksamheten, när vi har ett dåligt rörelseresultat, så ger det också en tyvärr negativt kassaflöde från den löpande verksamheten. It is basically the result and a slightly reduced supplier cost that affects us. A little better actually than the same quarter last year, but it is still not something that we are happy about. When it comes to the investment business, we have not either had as big investments as the same period last year. It is in principle and mainly an installation of solar cells. When it comes to financing the business, we have We will continue to do the amortizations we will do on our bank loans and the share shares during the second quarter, which are the major influencing factors. All in all, this leads to a cash flow of minus 41 million kronor. If you look at the numbers historically, you'd think that we're falling behind after Q2. We're focusing on our liquidity and other requirements, as Susanna mentioned, such as moving capital and the like, to ensure a better cash flow during the second half of the year. To sum up the quarter, unfortunately, we have a negative growth of minus 8%. We have an improved gross margin of 2.3%, a little more in office and a little less in library. And when it comes to the movement margin, we have the positive gross margin with us, we have a little lower costs, but the drop in sales is too much and we end up at minus 6.4 in the moving margin. The net margin after financial deposits and taxes is minus 7.5 percent, a little less than the same period the previous year, and även på avkastningen negativa siffror. Minus 10 procent på eget kapital och minus 6 på det sysselsatta kapitalet. Inte så jättestora förändringar mot föregående års andra kvartal. To sum up the whole first half of the year, we had a low order entry already in Q4 last year, which we knew, but we suspected that the sales in Q1 would be worsened. And when we had the same lower order entry in Q1, it also affected sales in Q2. So all in all, we have a sales that is 14% lower during the first half of the year. And as mentioned, some price increases and other improvements in the supply chain have led to the growth of the gross margin, not just for Q2, but for the entire first half of the year, and increased by 1.7 percent. Den positiva bruttomarginalen, som vi har nämnt även i Q2, motverkades av en negativ volymeffekt och även till viss del ökade omkostnader, vilket har lett oss till en negativ rörelsemarginal på 5,5 %. Och igen, lite sämre nettomarginal, minus 6,6 %. And the rejection of both private and social capital is therefore also negative. I think that was the last side of the financial.

speaker
Susanna Hillesko
CEO and Group CEO

Exactly. And then we come to a summary, then we would like to bring with us that we are fully aware that we have a sales-wise weak and at the same time costly quarter. which results in a result that we are absolutely not satisfied with. But at the same time, we want to mention that we are doing a lot of operations in the business for both result improvement and growth in the future. The brutto margin is further strengthened in this quarter, which we are happy about, and it also creates conditions for a revenue effect in the future when sales go up. We note higher order entry in the Office Interiors business area, which we are happy about. Vi har genomfört vissa organisatoriska förändringar då vi har tre personer på plats här under andra halvåret. Det är Jesper som är CFO, Beatrice som är tillförordnad vd på Lammholtz Möbel kombinerat med Sinira som är CSO i koncernen och Mattias Egberg som fokuserar fullt ut på sälj på Lammholtz Möbel där vi också, som Jesper sa, har lidit mycket här under den senaste tiden. Lammholtz-Värmö stands for the biggest deviation in terms of sales. We are doing a balancing act between gas and brake in a still weak market. We focus on the measures that we can influence. We feel that the changes, activities and initiatives that we do in line with our plan lead to a result improvement that we definitely aim for in 2025. We also want to create opportunities to achieve our goals by 2026, in line with what we previously communicated. We are committed to our ambitions of 80-10% EBIT margin by 2026. I think we are now at the end of the presentation and open up for questions. Please. Nej, det verkar inte komma några frågor. Då avslutar vi här med presentationen av andra kvartalet 2024 och tackar för intresset och uppmärksamheten och önskar er alla en glad semester och sommar när det är dags. Tack för oss. Tack.

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