Lammhults Design Group AB

Hej och hjärtligt välkomna till denna presentation för det tredje kvartalet 2025 för Lammhults Design Group. Mitt namn är Susanna Hilleskog och jag är vd och koncernchef i Lammhults Design Group och vid min sida har jag Jesper Langebro, jag är CFO för företaget. Just det. Då går vi rakt in på presentationen och vi sammanfattar det tredje kvartalet. to deliver strong gross margin and results improvement in a continuously weak market situation. We see an order intake that decreases compared to the third quarter of 2024, which reflects the continuously weak market that we have mentioned earlier. We see moving customer projects and waiting for decision-making in customer leads. And this happens despite the high activity on the market from our side. And as I said, something that we have to relate to. The order volume at the end of the period was slightly lower than at the corresponding time last year. And sales at the same time during the quarter increased by 8.9%, with a strong delivery from both business areas, office interiors and library interiors, which is exciting. We see the adjusted gross margin increase with 1.1% to 37.3% and the whole results in a adjusted turnover result that improves with 2.5 million kronor and goes up to 6.9 million kronor per quarter. If we start by mentioning some short words from the business perspective, we see that Library Interiors continues to deliver steadily with higher sales, stronger gross margin and improved sales results. Office Interiors continues its journey of change, unchanged, with the same focus and pace. With higher sales, improved and adjusted results, also here. The OTS program is fast-growing. We contribute to a gradual improvement in results, despite the challenging market that I mentioned initially. We also see that the collaboration over the company's business area boundaries creates synergies and increased customer value, and it feels more and more natural for every day that goes with this collaboration, which creates many new opportunities in the future. When it comes to our move, we mentioned on our website, in our brand promise and brand story, that we are moving towards a more unified Lammhus Design Group. We are talking about Scandinavian Design Multiplied, where we focus on creating synergies and opportunities with all the offers that we have in our portfolio. And that is something that we still believe in very strongly. We mentioned earlier in the presentation that we have implemented a new go-to-market model in Norway and it is also implemented in Sweden and we continue to see very positive results from this new business model. During the quarter, we have implemented updates to our existing showrooms in Oslo and Copenhagen and we have moved into a completely new showroom at a new address in Stockholm. And these showrooms, which are an important meeting place and an important part of our sales process, also underline the new way of working that we have, where we deliver holistic solutions rather than products, where we offer our entire portfolio. The digitalization journey continues in this quarter. We have a new business system in Library Interiors that is in place. And we have ongoing projects with the customer journey in focus in Office Interiors. And as we mentioned earlier, we are building an organization for the future. And our ambition and goal is to reach an EBIT margin of 8-10%. That is the goal. finns fortfarande i vår ambition och plan oförändrat. Jag nämnde showrooms. Viktig mätesplats. Väldigt viktigt forum för våra kunder och samarbetspartners att mötas och skapa affärer. Här visar vi lite smakprov från våra tre showrooms. Vi har till vänster högt upp vårt showroom i Köpenhamn. Efter uppdatering till höger Up and down, we see two pictures from our new Stockholm showroom. On the bottom picture, we also see the new digital support of the physical room, where we show the possibilities with our portfolio. As I said, the physical and the digital in harmony. To the left, we have our updated showroom in Oslo on Pilesträdet. An important event during the quarter was Designers Saturday in Oslo, which opened in September. And here we see a full house in our new showroom with customers and collaboration partners of all kinds. A very important meeting place and very fun to be able to show off this momentum that we feel we have on the Norwegian market with strong sales of all our four brands. David, let's move on to the figures in the report. I'll hand it over to Jesper.

Thank you, Susanna. As usual, we'll start with the order entry and the order block. As Susanna said earlier, we've had a slightly weaker order entry. It decreased by 15.5% compared to the same period last year. It went up to 165 million. The order stack, however, did not decrease as much, but we have had a good development on the order entry and order stack earlier, and we have also mentioned how it will be delivered and invoiced, and that is what has happened most of the time here under Q3, which we also see in the increase in turnover, which we will soon get into. But in short, per business area, we have a weaker order entry at Office and also with the order stack from those deliveries. It is mainly within Office. At Library, we also have a reduced order entry, but the order stack is on a satisfactory level and higher than the same period last year. So again, the net is a 6 million lower order stock before Q4. And that's really what we're going to relate to. On the diagram, we can see a little a curve that goes down, but we don't see it as a trend break, but it's a little hack in the curve here in Q3, which is a special quarter with semester months. And as I said, the order stock is almost on the same level as the previous year. If we then talk a little about the turnover, as I said, there was an increase of almost 9% during the year and our turnover went up to 205 million. It is an increase both in Office and in Library. And within Office it is actually now stable that Norway is our strongest market. Should we talk about the fact that the market may not be completely dampened, then it may be in Norway where we see signals to strength signs, while it is still weak in Sweden and Denmark. As for the library, it is a stable development, quarter after quarter, an increase in invoicing and shipping of installations and products. In LIBRARY, it can slightly change from market to market, which one is better or worse compared to previous years. But what is worth remembering is that France is our individual strongest and most important market when it comes to LIBRARY. If we talk about adjusted movement results, it went up to almost SEK 7 million, an improvement of SEK 2.5 million during the quarter. We are pleased with the increase in revenue and the development of our gross margin, an increase of 1.1% compared to last year. However, there are some effects during the quarter. We do not classify them as restructuring costs, but we have made extra investments on Showroom, on other market investments that have cost a little more than usual. And we have also had a periodizing effect on the joint venture we own, a library company in Norway. Vi uppskattade till kanske effekter på 2,5 miljoner som har påverkat resultatet under kvartalet. Igen, inte en omstrukturering men något av en engångshändelse som man ska komma ihåg. Så vi hade haft ett lite högre resultat annars. Vårt omstruktureringsprogram fortsätter och vi uppskattar dem till lite lägre det här kvartalet än föregående kvartal, runt 4 miljoner. Det hänger ihop med just att det är semestermånader så är det mindre aktivitet i allmänhet under det tredje kvartalet, vilket också gör att det finns mindre potential till vissa besparingar. And we already had relatively low costs last year in Q3, which is part of why we don't see the same increase and improvement as in previous quarters. But that doesn't stop us from believing that we have a good journey into Q4. Again, if we talk a little between the business areas, we have a small improvement on Office. And it is again both revenue and gross marginals despite these market investments. And in the library, we are increasing and reaching almost 8 million in adjusted turnover results and a good margin. And then it is still that we still have some, what shall we call them, after-implementation costs when it comes to ERP systems and so on. But on the whole, an improved, adjusted movement result with something we can call one-time effects of 2.5 million included in it. Kassaflödet är intressant. Vi har en förbättrad underliggande verksamhet och den vinsten tillsammans med 5 miljoner bättre utveckling på rörelseresultatet gör att vi har med oss nästan 12 miljoner från den löpande verksamheten. Our investments are not that big. It is ultimately about product development that is being activated and the implementation of the business system at the library, which has risen to 2.4 million under the quarter. And with those two positions, plus what we call amortization of leasing debt, we have a free cash flow of 6 million under the quarter. Which is almost 9-10 million better than the previous year. Which we are still quite pleased with. When we have the increase in sales during the quarter compared to Q2, we bind capital that we release during the fourth quarter. So the cash flow should look better then. In summary, from the financial point of view, some of the key figures. A good increase in revenue during the quarter and, as I said, expected, given that we have had a strong order book that we have now delivered. Skönt eller trevligt att få säga att rörelsemarginalen har ökat och att det i sin tur beror på delvis bruttomarginalen som har konstant under året utvecklats positivt. Soliditeten är något sämre än motsvarande period föregående år men det har att göra med att vi gjorde nedskrivningar i Q4 föregående år So when we get there, we don't have a comparative posture. As for the net debt, it is lower than the same period the previous year. And that basically has to do with the fact that we have a positive cash flow during the year. Then we have a division, but the underlying cash flow is positive. And when we then come to the number of employees, the average number in the group, we are almost on the same level as the previous quarter this year, 264 compared to 265. However, 30 people less than the same period last year. And it is mainly within the Office Interiors business area that we have implemented the plans that we have laid out and continue to work with in the action program. And with that I hand over to Susanna again.

Thank you Jesper. We are here with a summary and we deliver here the third quarter with an improved adjusted turnover result of 2.5 million kronor and thus up to 6.9 million kronor. And the improvement of the results is in both business areas. We see an increase in the adjusted gross margin with 1.1 percent unit. Sales increase in the quarter by 8.9% compared to the previous year. This occurs both in office interiors and library interiors. If we look at order inputs, we see a weaker order input as a result of a fairly dampened market, especially in the Swedish and Danish markets that Jesper mentioned here, while we have a strong momentum in Norway. Åtgärdsprogrammet fortsätter med oförändrad ambition och takt. Vi förändrar framför allt inom affärsområdet Office Interiors och vi samordnar över bolagsgränserna till en mer funktionsindelad struktur. Ressourcen har förstärkts i kvantalet inom design och produktutveckling samtidigt som vi har insatser för att skapa förutsättningar för en ökad inre effektivitet och en effektivitet i produktionsorganisationen. Och som vi har sagt tidigare, det här är inte ett läge som vi kan eller vill spara oss utifrån utan vi satsar We want to strengthen our market position in the face of a future market recovery, which we really hope will take place in the short term for the best of the industry. i allmänhet. Vår ambition och mål att både uppnå tillväxt och en ebit-marginal på 8-10% under 2026, den kvarstår, som vi har sagt tidigare. Därmed har vi väl kommit till slutet på i alla fall själva presentationsdragningen och då öppnar vi upp för frågor och svar. And then we see some questions pop in here. Ska vi försöka ta det här uppifrån ner, som vi ser det i alla fall. Då har vi en fråga, kan ni förklara lite om den ökande opväxten? Kom en fråga från en investerare.