Nexam Chemical Holding AB (publ)

Good morning and a warm welcome to today's Q3 presentation with cleantech company Nexam Chemical. Joining us today are CEO Ronny Törnqvist and CFO Marcus Nyberg, who will take us through key developments and financial performance. Following the presentation, we'll also move into a Q&A session where we'll be joined by ABG analyst Lara Mukhtadi. And a quick reminder to everyone watching this morning, you can submit your questions if you're joining us live in the chat box, and we'll try to get to those at the end of the Q&A session. All right, with that, I'll hand it over to you, Ronny and Markus, please go ahead.

Thank you, Joachim. Good morning, everybody. We're here to present our third quarter of Make Sam Chemical together, me and Marcus. Brief overview of this quarter is that after the record quarter that we had in the second quarter, Q3 was quite weak on the top line in comparison. and in comparison to what we wanted. This was mainly due to low sales in two-hour segments, high temperature and lightweight, where there were some stock adjustments happening for some of the biggest accounts. However, this quarter was also another really strong quarter in the sales development in recycling. and it was a quarter full of enormously much more activity in terms of business development as you will see more during this presentation. So everything is running at high rate at Nexam although this quarter had a little bit lower sales. But the underlying engine is running at very, very high RPMs right now. I would like to hand over directly here to Marcus for some more financial details. Please, Marcus, go ahead.

Thank you, Ronny. As Ronny mentioned, it was kind of weak on the top line, but we also have some really positive results, and that's also a bit what we will focus on in this presentation. We had a record in gross margin, 49%. We are getting closer and closer to the 50%. One thing that is really driving our margin is the recycling business. We have invested many millions in this business during the last year. And this is our growing part of the business and also where we have the highest margins. We had a record in terms of recycling. We had 9.3 million SEK during this quarter. That is compared to the third quarter last year, is 66% higher. And actually, on rolling 12, we actually doubled the recycling business. And as always, during the third quarter, we have lots of vacation period at our customers. So that's a little bit the seasonality is not in our favor during the third quarter. For the fourth quarter, of course, it looks different and much better. We can also mention that our base business, the Calla Master Batch, is really stable and continues to be so, and that's really good for us. And here you can see a few comments on our four different business segments. We have the aesthetics, that's very much related to color, to the plastic industry. We have many hundreds of or customers. It's a very stable business. We saw that Eastern Europe is picking up actually. During the spring, the Nordics were growing, but the Eastern European was a little bit weak. Now we can see that Eastern Europe is picking up. For lightweight and high temperature, as Ronny just mentioned before, we had kind of weak waters after our record during spring. And then we had recycling, where we are putting lots of resources. We're out on exhibitions. We are meetings and meetings and meetings. And this is a truly interesting part of our business that we really are focused on without But continue to also run the other parts. Here you can also see what I just mentioned. This is the status for recycling and development. And now we are 9.3. Of course, we are looking to come up to a new record for the fourth quarter. There is no doubt what we're aiming for. And also saying that we actually doubled the business on the rolling 12 months in this part. Here are also some small numbers related to this. What is happening before we get orders and before we get the revenue. We actually had 86 samples that we send out. But this is also samples in the other areas. But the majority of those are related to recycling. And that's where we have lots of interest from from our current customers, potential and potential customers, and also that we have been focusing quite a lot on also doing internal trials, making this so we are getting more and more knowledge in what applications our additives should be used in. And then I hand over and hand back to you Ronny again.