Profoto Holding AB (publ)

Hi and welcome to Profoto's Q3 presentation. My name is Amanda Åström and I am Head of Investor Relations. Today I have with me our CEO Anders Hederberg and our Acting CFO Linus Malmstedt. I will first hand over to Anders who will start off by giving you some highlights for the quarter.

Welcome everyone. Thank you for joining. As you saw in our presentation, we say that we still have a cautious market climate or business climate, or that the customers are actually hesitating, still hesitating to take the decisions to buy new flash, new lighting equipment. We are continuing, though, our work on investing hard in or a lot in product development, and this shows in the figures. Our net sales. we dropped by 4%, but organically the sales decreased with 1%. The difference here is the currency, the value of the currency over the period has changed. Our adjusted EBIT was 30 million crowns, which is down 5 million from 35, corresponding to an EBIT margin of 18%. One of you that are following Profoto, you know that our Our target is 25 to 30%. I would like to say this is just a quarter. This is not for the full year. EBIT was 39 million after some changes from the adjusted EBIT, which is 24% of sales. Our return on operating capital was 32%. Okay. As I said, we are continuing to increase or change or make our investments in new products. We are focusing mainly on three areas. Number one, we are launching new products. We are developing new products for our core. That is live or professional still photography. One example was not during this quarter, but during last quarter when we had a successful launch at the end of that quarter. Second, we are continuing to enhance our offering in workflow solutions for large studios, large content creation studios, mainly for e-commerce. Thirdly, we are investing in light for film production. And we launched or we showed our L1600D Cinegear in the end or in June this summer. We will start to ship that product in the end of the quarter, in the second half, actually, of December. We will have minor shipments, which will affect the fourth quarter somewhat, but not a lot. During the quarter, next slide, please. During the quarter, we have focused a lot on bringing new accessories, new light shaping tools to the market. We launched some of the products called Magnum, Reflector White, a series of white reflectors, Magnum Telezoom and Zoom reflectors. In addition to this, next slide, please, we launched soft boxes, two types of soft boxes, one octa silver and one three by four foot silver box. And you see some example of that in the image to the right. Lastly, we also launched a new kit for the A2, which has been very successful. A2 combined with a connect so that it's easier for the customer to buy that kind of product. Then you could jump to the next slide and I will hand over to you, Linus. Welcome, Linus.

Thank you. Thank you. This is the slide we have presented before. As you can see, during the last quarter of years, the number of major launches has been somewhat lower than the long-term trend. As you know, we are investing heavily in R&D with an expected number of launches during the coming period. On the next slide, this is a very important slide, as you can see. The R&D spend has more than doubled during the last years. And what we now expect is to see a level of stabilizing this level in general spend. Next slide, please. And in general, you can see that we have seen a cautious market with an underlying organic growth of minus 1%. We just commented on the margin. Sorry. We were talking about the margin and the general market trend and the margin development.