Litium AB (publ)

Hello to all viewers and listeners, it's 14 o'clock and it's time to get started. My name is Martin Belenius and I'm the CEO of Leatsium. This will be my first quarterly report, when I joined in the middle of February this year. I will do my best to keep my tongue in the mouth. And with me in the studio is our even newer CEO, Petter Bliv.

Thank you, Martin. My name is Petter Bliv. My name is Petter Bliv. I've been employed in Leatsium since April 1st. Very new, as I said. I had a short period before as an interim consultant. I have a background of almost 15 years in similar roles. I have worked on the customer side in relation to Leatsium. I have worked in many different e-commerce companies. The majority of those companies have had as primary goal to grow and scale, just as we want to do here at Leatsium. I'm incredibly excited to get the chance to grow Leatsium together with Martin and the other team to new levels.

For those of you who don't know me, I'm a new CEO since two months ago. I later came from a role at the SaaS company Medius as CEO. I think this will be a bit of a repetition for some, new for others. But I think we'll start with a short description of what we do here at Leatsium and what actually makes us successful in the market. Then we'll go into the Q1 report, followed by a shorter preview.

Okay,

let's go.

What do we do at Leatsium and who are we? If you know us, you know that Leatsium is a tech company in e-commerce. We manufacture and sell soft goods for digital sales of products all over the world. Our mission, our whole purpose and existence story, is to help companies succeed with their digital sales. Our product is a so-called e-commerce platform that contains everything you need to drive advanced digital trade. It also makes our customers can sell effectively the world over, regardless of the number of markets and regardless of the complexity of the product you sell. Our vision is that Leatsium should be the self-definition choice in Europe for B2B customers when they are going to evaluate this new e-commerce platform. And in our eyes, we deliver a perfect mix between time to market and flexibility. Today we have over 200 customers who use Leatsium in more than 150 markets around the world. And we have also achieved this together with our fantastic partners. Our business model is SaaS and 100% of our income is recurring and that is something we

are very proud of. And as you can see in

this picture, there are a lot of customers who have discovered and are doing their e-commerce solutions on the Leatsium platform. I also think it is worth mentioning that through the platform, the business value flows between about 20 and 30 billion SEK a year. And as you will see later in the presentation, these customers

will only become more and more. Okay, let us jump into the report and

let us start with some highlights from Q1. Revenue is up .7% compared to the previous year's Q1. This is our best Q1 ever and better than planned, but there are still enormous opportunities to accelerate growth. The growth is still too low, but with our focus and the strategic initiative on growth that we invest in, this will come, as SaaS economy actually works, to show up later this year in Q3 and Q4. And on the subject of growth, it is also very exciting to be able to tell that we have had our best quarter ever when it comes to new customer acquisition. It is of course very satisfying that the

market really appreciates our product. If we look at ebit,

it is also better than planned. And the main reason for negative ebit is, as I write in the video, that we have been working very dedicated during the last autumn with migrating customers who are on older versions of Leatsium. When we do this, we also write about the contract to match our current SaaS model. What happens then is that here and now we get a income gap, when some of these customers are on another type of contract and business model, where they took in the assets upfront. This is of course also a very conscious choice of us and it is also a great advantage for the customers to come to our latest revision of Leatsium. At the top of all this, we also have, as you know, a VD shift and a new CFO has been recruited. Given all this, we still deliver better than planned, but thanks to increased revenues. And then, above all, as you see here in the presentation, the revenue is moving up by 124% compared to Q1 2024. Then you also have to take into account that this increase comes when the world is worried. We have an USA that talks nonsense. It is also very, very nice and a confirmation that our model works.

Finally,

I am very happy to have Petter on board. With his experience, he will contribute a lot to the journey Leatsium is now taking. But before you hear from Petter, I want to show a couple of slides. And it's not just that we have had a very nice inflow of new customers. We have also had a lot of people who have been live with our platform. I can not say enough how important it is that our customers quickly get their investment in Leatsium. Time to value will become more and more important and my perception is that patience will also be worn out more and more when it comes to too long implementation projects. What you see on this slide is an axis block of customers who have been live and customers who we have actually signed in

Q1. Finally, before I let Petter go, I

would also like to make a note of our annual report that we are carrying out here at Leatsium. Last week we released our report Nordic Digital Commerce in B2B, which shows that digitalization is now deeply rooted in the B2B market. 83% of companies use digital channels for sales and almost 70% expect continued growth. What we also see is at the same time a clear shift in focus from internal effectiveness to increased customer service, more sales and AI-driven initiatives. And I just think this confirms the strong growth potential we actually have in our market and that Leatsium is very well positioned to meet these increased needs of scalable, data-driven solutions. With that said,

I will let Petter go again.

Petter?

Thank you Martin. If we start the financial part of the presentation with looking at our annual revenue, our ARR, in this report and the graphs we show, this is a back-looking key figure. It is the last 12 months of revenue. So this fine new knowledge collection that Martin mentioned, which we are very happy about, they therefore have a reduction of up to 12 months to get effect when we look at these numbers. With that said, we are also very happy that we have an ARR that has gone up every quarter for a very long time, as you can see in this graph. In the Q1 we went over 73 million, we reached 73.3 million and the last quarter it has a growth in ARR of .1% compared to the same quarter last year. We have a great focus on growth, as we mentioned in the previous presentation, and a very fine new knowledge collection in the last few months. We have a very strong belief that the ARR development will be much better than the 3% we have in the report quarter. But as I said, with a certain reduction in the effect on these key figures. Next to total revenues and gross margin, the blue staples describe our revenues, Q1 last year to the left and Q1 this year to the right. The yellow dots mark the gross margin for the period. The net turnover, as Martin mentioned, has gone up by 7% by 2024. All our turnover is recurring. .6% is fixed revenues. As I mentioned, we have a very good growth on our gross revenues, which went up 124% compared to the previous year. We have a strong belief that the gross revenues will continue to increase, just like the fixed revenues. The gross margin goes down a bit compared to the previous year. .3% in the quarter compared to .9% in 2024. These fluctuate a bit between the quarters. But what we see here, if you look forward, is that our new serverless technology will be much more cost effective. We will lower our operating costs very clearly. This will start to give effect in time with migrating more customers to our latest platform. But also when we get new customers, which is our latest solution, with significantly better margin. So forward, we expect a positive trend here over the coming years and that we will work up to higher levels than we have seen historically in

the company. As for the other

costs, our OPEX and EBITDA, we have the blue staples that show OPEX and the yellow dots are EBITDA. The total costs increased somewhat in the quarter compared to last year. Martin has already been on the occasion behind it. We have a change that will cost us up to the third quarter of the year. But above that, we have a cost level that has dropped significantly in recent years. It is now very stable and we see that we are on a good foundation and have a very good potential to scale the company forward. EBITDA will land at just under 4 million or about 20%. It is a small reduction compared to last year, but the reason is the change in OPEX that has already been mentioned. If you look at it in a total way, we see that the underlying profitability, regardless of the entry costs, increases in the underlying profitability in daily business

continuously.

The

last slide for me regarding

investments and cash flows. The blue dots are the investments in our product and the green represents the company's cash. We see that we are increasing the investments a little towards the previous year. We continue to invest in our product development and we will continue to do so. And what we primarily invest in is functionality and the useability of the product. Positive cash flow in the quarter at about 600,000 SEK. It is a clear improvement compared to the previous year, when we had a negative cash flow in the same quarter at about the same amount. And we go out of the quarter with a cash flow of just under 8 million. That was all for me regarding the financial statements, so I will go back to you Martin for a summary. Thank you for me.

Thank you Peter. I have a

slide left

to

talk about. If we look at the slide, we feel a strong optimism, despite the uncertainty on the market, created by the previous mentioned jitters and concern in the environment. And some reasons for my optimism are that we have a state of the art product that we will continue to invest heavily in, as Petter just mentioned. We will primarily invest in AI and useability to make the product even better.

According to me, we also have a very

attractive business model. We grow together with our customers. If it goes well for our customers, it goes well for Lithium. Last but not least, for those of you who have not read our latest report, Diesel Commerce in B2B, there is a great opportunity for us at Lithium here. We have a very good product fit and the trend of digitalizing our sales is only increasing and we see that it will continue to be so. Here we see a great opportunity to take over leadership. In summary, if I should summarize this presentation, Lithium has a very strong foundation to stand on and we have a good quarter in the back. We will focus on growth. We just got from our best quarter ever, from the new knowledge creation. Time to value. This is very warm to my heart. I am completely convinced that it is more likely that customers will be satisfied if they get a quick ROI from using our products. Our product investments will largely be prioritized for this goal. Finally, our mission is to make the choice in Europe for B2B customers when they are looking at a new e-commerce platform. It's a long way to go and the journey has just begun, but I am 100% convinced

that we will reach our goal. With that said,

I would like to thank you for showing interest and commitment to all of you who have questions about the presentation, so do not hesitate to contact us and feel free to contact us at IR at Lithium. Then we will take up the thread there. I would also recommend following Lithium on LinkedIn and following our investment channel on the web. It is the best way to get the latest and the greatest from us at Lithium. Big thanks!