Lammhults Design Group AB

Good morning and welcome to this presentation of Lammhuls Design Group's fourth quarter 2025. My name is Susanna Hilles-Skoge. I am CEO and CEO of Lammhuls Design Group. And on my side I also have today Jesper Langebro. Hello everyone. CFO. Great. But let's get started. Vi börjar med lite allmän sammanfattning. Vi konstaterar att vi avslutade året på ett ganska stabilt sätt. Vi har fortsatt ett svagt marknadsläge. But we see that our strength in width and height in our portfolio has contributed to stability during this quarter. The turnover was in principle in line with the fourth quarter of last year after we frustrated for negative currency effects in the quarter, which was then born of a stronger Swedish krona. On the positive side, we see an increase in the order intake that landed at about 3.5% and an order stock that was higher with 13% than at the beginning of the previous year. We also see a positive development when it comes to the adjusted gross margin, which has now risen to 37.9%, which corresponds to a further improvement even in this quarter with 0.4%. At the same time, we have a adjusted turnover of 19.8 million SEK per quarter, which corresponds to an adjusted turnover margin of 7.9%. The free cash flow, including leasing, went up to 42.3%, an improvement from the corresponding period earlier this year. If we look at the business itself, we note that the business area Library Interiors ended the year in a very strong and positive way, with increased turnover and good sales. We have the business area Office Interiors, which continues its efficiency and change journey even during the past quarter. We have improved the adjusted results with higher order intake despite a still weak market. And we continue on our journey of change, mainly related to the Office Interiors business area. But in both business areas, we see high activity and a lot of activity, both in efficiency, investments and changes. When it comes to the assessment program, we are approximately halfway through the program that was initiated at the end of 2024. We see a full implementation effect at the end of 2026. But in the fourth quarter of 2025, we will end the economic burden of the assessment program. When it comes to how we present ourselves on the market and our business concept, we continue to work with our Scandinavian Design Multiplied, a concept where which is central to our transformation process and where we strengthen the collaboration between our brands and make ourselves more positive towards our customers and the market through a broader offer and greater relevance in the project. And we note that by the end of the year, we are in a better position than at the beginning of the year, with a constant focus on what we ourselves can influence, given that the market is still weak, especially when it comes to den sidan som Office Interiors agerar på. Och vi fortsätter som sagt vår långsiktiga vision mot tillväxt och en ebit marginal på åtta till tio procent. Det var lite generellt i stort högt och lågt och då går vi över även till det som händer ute på marknaden. Vi är som sagt i en bransch där det gäller att to be seen, to be inspired and to meet customers, like many others. But this is perhaps extra important. Here we have activities related to libraries. A congress in Nantes in France. We have another activity in Antwerp. We have Dublin in the country, when it comes to office, or when it comes to the library website. And when it comes to the office, we had an event in Oslo for architects and resellers called Beaujolais Niveau, connected to the launch of Beaujolais Niveau. But it is a very inspiring event that we usually organize in return together with other suppliers in the industry. Går vi vidare så är den stora händelsen egentligen under hösten och eskalerat här under fjärde kvartalet var vår invigning av vårt nya showroom i Stockholm. Vi har ju nämnt det tidigare i vår kommunikation, vi har flyttat i Stockholm till en ännu mer centralt belägen och exponerad placering, nära studieplan på en relevant plats med en lokal som skapar möjligheter And we really haven't been able to do that. A big investment, both when it comes to energy, but also time and money, of course. But we think this is a very right and relevant approach to our journey, to get closer to our end customers, end customer support. It's a little easier to work with architects, offices, resellers and other partners. En plats som ska inspirera och inspireras och det samarbeten utvecklas. Det har varit en väldigt hög aktivitet i showroomet under hösten och fortsatte även här in på det nya året med Stockholm Design Days som genomfördes här vecka sex med besök från internationella journalister och många andra kunder. Vi är väldigt glada för den här förflyttningen som vi har gjort i Stockholm. And with those words, we'll leave it to the number part, which Jesper usually stands for.

That's right, I'll continue. And as usual, we'll go a little bit up and down on our results calculation and other interesting financial posts. And if we start with the order entry and the order block, we've had a positive development in the quarter. The order volume increased by 3.5%. And if we also talk about the effects from the currency, we estimate them to be about 3%. So we're talking about a 6-7% increase in the quarter. The order volume has also increased by 27 million in the quarter, as you can see in the diagram to the right. is positive for the first and second quarter during this year, 2026. Both Office, or mainly Office, had its increase in order intake and therefore also the order block. You who follow us may notice that it fluctuates from quarter to quarter. Sometimes it's a little bigger business that comes in and if I remember correctly last quarter it was actually Library that stood positively. But now in the fourth quarter it is Office that has a strong order entry. A good and strong order stock for this year. Library increased or decreased And again, if we now think that we have a currency effect of around 4% on libraries, we actually have an underlying increase in the library business area. The business area is largely a euro business area, based in Denmark, but as you know, the Danish krona is pegged to the euro. So if we are to think about currency effects for libraries, it is in principle euro effects against SEC. All in all, strong order stock before the first quarter and the second quarter in both business areas. If we move on to the turnover, as Susanna said, we have a small decrease, but in principle the same level as the same quarter last year. when we clean up for the effects of the currency. And the effects of the currency, like many other companies this quarter, are mainly related to a strong Swedish krona and not so much any individual foreign currency that is weakened. The turnover went up to 250 million. As I said, a few percent down, but actually below the same level. It is mainly in Office that we see a small weakening and that is also where we have a lower currency effect. In Office, it is basically our Norwegian business with the base in FORA form that is affected by, if you say so, a stronger crown. But it is also the export or international business that mainly abstracts have outside of Scandinavia and to Denmark that are affected. But compared to LBRY, LBRY is about 4%, Office 2.5%. So we have a decrease in the quarter. But we are actually quite satisfied. The fourth quarter is a strong quarter for us. And we also see that in our turnover results, which we will see soon. It is worth noting that the strength we have seen in Norway in the last quarter, which we dare to say comes from our own work with the common platform, with our four brands that we work actively with, where all four brands' sales have strengthened in the quarter. It continues. Så vi är väldigt glada för den tillväxten vi ser i Norge och vi arbetar vidare framför allt i Sverige och delvis Danmark för att ha samma resa detta året. For Library, the increase is 4.8% and, as I said earlier, actually even more underlying if we look at it as a euro business. A little more than 9%. Strong development, strong order entry, good order book. We are very pleased with Library's position here in the fourth quarter. And those of you who follow us may also know that it's a bit up and down which country is developing better or which market is developing better when compared to previous years. Sometimes it's Great Britain, sometimes it's Denmark, sometimes it's Sweden, sometimes it's France. But is there anything you remember anyway, is that France is the largest market, the most important market for us in LIBRARY. And then we have Från kvartal till kvartal har vi Storbritannien, Tyskland, Sverige och Danmark som viktiga länder If we move on to the adjusted turnover result, we have almost made it all the way, but we are actually very happy with the almost 20 million that we report this quarter. We do not write this, but if we are to talk about a adjusted for the currency, I would say that we have 1.5 million with us. It is primarily the library and then the form and export businesses that are affected. And then we are actually not at all far from the same figure in money calculated and the same figure definitely in percentage when it comes to our adjusted movement margin. Vi arbetar vidare med våra program, åtgärder och initiativ. Det är inte allt som ryms inom vårt åtgärdsprogram. Vi har en något förstärkt bruttomarginal. Vi har gjort marknadssatsningar i library, framförallt i det här kvartalet. Det syns i alla fall vad gäller omkostnader jämfört med föregående år. We also have a lot of joint investments. We are talking about a journey and a company culture journey that also requires a little effort to build and build something new and build something strong. And then, like many other companies, we have also sat with a lot of governance initiatives such as CSRD and EUDR. Fortunately, some of them have ended during the quarter, but still driven resources. So the increase that we have seen in the fourth quarter, we will not have with us next year, where we see a lower turnover in the joint activities of the companies and at the level of mother companies. To be brief on the business areas, Office is coming in a little stronger than last year, 5.8 million. It is not at the percentage level we want, but it is still quite nice considering the turnover and the market situation we are in. And if we look at the library, we have a good strong quarter, 19.2 million. As I said, a little higher, maybe 1 million if we were to do it comparable to previous year's currency rates. och en rörelsemarginal på hela 20%. Nu är ju detta ett starkt kvartal för både Office och Library, så det är inte den här nivån vi ligger framåt. Men vi tar, som ni ser, förbättringssteg, vi ökar rörelsemarginalen, vi ökar bruttomarginalen hela tiden i båda affärsområdena. Och det är ändå ett styrketecken för vad vi gör för någonting varje dag i verksamheten. I think I'll go on with that and get to the cash flow, which has also developed strongly. It's a pretty natural effect of an improved movement result. It may be a little easier to look at the figures this year. We had big declines in Goodwill posts. We had a decline in laws last year. Detta året har vi inte några sådana poster utan det är ganska clean vad gäller kassaflödespåverkande. And as you can see, we have a cash flow from a running business of almost 48 million. A good underlying result and a good development of the moving capital. And that's still despite the fact that we increase sales in principle every year from the third to the fourth quarter. It binds a little more capital to customer vehicles above all. So we are happy with that development. As far as the investment business is concerned, it has not been that extensive and it is actually due to the fact that we have no larger investments behind us in fixed assets, but it is in principle our activation of product development projects. In addition, we have made some adjustments to the portfolio this year, as mentioned in the adjustment posts. This also means that a decrease here means a lower net investment. It's a bit technical. This leads us to our key statement for cash flows, which is free cash flow, including leasing. I want to clarify again that what you see as amortization of leasing debt is in principle the same as our rental expenses, if not for IFRS review rules. And that's why we take it with us, because we think it belongs at home in the operational business. And as you can see here, we have almost an improvement of 10 million in the quarter. So we have a strong, good underlying business that gives a strong, good cash flow in the quarter and for the whole year for that part. A little short about key words. We often talk about growth and a little strange to talk about minus growth, but that's how it is. However, remember that it is in principle unchanged if we had had the same currency exchange rate as last year. The adjusted turnover margin has decreased somewhat, and this is in principle an effect of a slightly lower turnover. We are still on the same cost base, both in the production business and in the usual costs. It is almost a mathematical certainty that it will be a slightly lower percentage then. The solidity has also deteriorated, but it is also a constitutional effect of the fact that the value of our own capital in our foreign subsidiaries is decreasing when the Swedish krona is strengthened. The net debt is actually much lower, and that is the positive effect of the strong cash flow during the quarter, which also strengthens our liquidity base. As for the number of employees, it is unchanged from the previous quarter, but down 17 people on average compared to previous years. This is related to the business area Office and the measures we took At this point in the previous year, but also during the first half of the year. All in all, quite strong key figures and improvements. A strong cash flow, I would say. Good gross margin improvements. Stable business in the future. I think I'll hand it over to you again, Susanna.

Thank you, Jesper. And then we have a summary of the fourth quarter and we note, as we have said here a few times, that the revenue is in principle in line with the fourth quarter of last year, if we are away from currency effects. The order entry increased somewhat. The order stock is 13% higher than at the beginning of the period compared to last year and we have a adjusted gross margin that has increased somewhat in the quarter. We see Affärsområdet Library, som avslutas starkt på mycket glädjande sätt. Office Interiors fortsätter sin effektiviseringsresa och vi redovisar ett justerat rörelseresultat på 19,8, motsvarande 7,9 procent i ett kvartal som hade väldigt starkt jämförelsekvartal förra året att möta. Kostnadsbelastningen av åtgärdsprogrammet avslutades i det här kvartalet. After Q4, we will have a summary of the year. The turnover also landed somewhere in line with the previous year, except a little higher, if we count the effects of the currency, which actually escalated towards the end of the year. The adjusted gross margin rose by 1.7% on a yearly basis, up to 37.1%. And we have the adjusted turnover that improved from 4.1 last year to 27.8 this year. Or 2025. The adjusted turnover margin therefore increased from 0.5 to 3.2%. Not in any way where we want to be. It is not the destination for our part, but we are on a journey of change. And as Jesper mentioned, we have made big investments on the inside to build a common culture. We build bridges between companies. We build bridges between positions in the different companies over country borders, over commodity and brand borders and over different functional borders. A lot is happening on the inside. We have also laid the groundwork for a common value base Both internally and externally, something we want to stand for, a common culture that also builds a team in the future. With that said, we just want to emphasize that we have the same ambitions as before, to improve steadily towards the financial goals we have and continue to aim for. to the 8-10% that we mentioned earlier. But some challenges remain in the market, as we said, but we continue to focus on what we can influence ourselves. And as we know, we tend to be seen here and there. If you have the roads past, both in Stockholm, Milan and Copenhagen, Lammhult, London or Copenhagen again, you are welcome to visit us. Here are some events, exhibitions and fairs that we participate in. Har ni vägarna förbi på Norrlandsgatan 20, bara ring på. Ni är välkomna att komma förbi och titta på vår senaste satsning och showroom i Stockholm som vi är väldigt glada för, det vi just har lanserat som vi sa tidigare. Det gemensamma konceptet att gå från fyra varumärket och enskilda produkter till att visa ett helt koncept och erbjudande till marknaden. Ja, och med det sagt så tror jag att vi är framme vid frågor.