Profoto Holding AB (publ)

good morning and welcome to pro photos q2 report my name is amanda ostrom and i am head of investor relations today i have with me our ceo anna schedeberg and our acting cfo linus marmstadt we'll start off by handing over to anders who will give you some highlights for the quarter good morning and hello everyone

Today we are reporting the second quarter 2025 and we are reporting from a challenging content creator market. Our net sales decreased with 13% down to 171 million Swedish crowns. And half of that was organic negative growth and half of it was explained by currency effects, mainly a lower dollar and Swedish crown exchange rate. As I said, the market is tough and we see that the customers are hesitating to take decisions to buy big decisions to buy. And this has also affected our EBIT, which is down to 18 million Swedish crown and 11% EBIT over sales ratio. Of course, this is explained by the lower sales, but it's also explained by product mix and somewhat increased cost for launch of our new LED products. And I will cover that more later in the presentation. We launched, though, a lot of new products. First of all, we launched the B20 and B30, which are two new flash products. And we also launched and renewed our line of LED products. More of that later. One of the other things that is, of course, affecting everything is the development regarding tariffs into the United States. And we're working heavily with that and following the situation closely. So sales decline of 13%. And that looks dramatic, but as I said, half of that is currency effects and half of it is organic growth. And if you look in two regions, we first see the Americas, which is not showing a decline, but mainly in local currencies. So the organic growth was slightly up. But given the currency effects, we are not down 9%. We are also seeing a decline both in organic and currency effects in Europe as well as in Asia Pacific. And the the the down size of organic growth is though explained of that we have very good product launches in this quarter this year, but we have actually even better product launches last year in the same quarter. Last year we launched the Pro D3 and this year we launched the B20 and the B30 products. And But I would like to explain also what we have done into the LED product market. We launched at the Cinegear Expo in the beginning of June. We launched our full line of LED products, the LP2000C, which is a large panel used especially in cinema production. The L600 color and the daylight versions, which are used both in cinema but also in the content creator market. The initial reaction was very good, especially to our large panel, because we were at Cinegear and the interest was huge for that kind of product. But we have not started to ship yet, so we're taking costs for launching the products, but we have not started to ship yet. We expect to get the production going so that we will start shipments towards the end of the year during Q4. So we hope to see figures for that in the fourth quarter. In addition to the LED launches, we also launched the B20 and the B30, which is a replacement of the B10. And the reaction from the market was very good. So now over the last 12 months, we have updated our Flash product line. So we have brand new, very great products selling into the photography market. We also have a very good lineup for professional products into the LED market, both to the cinema market as well as to the content creator market. And this results in that we have the possibility to approach a greater addressable market. And we see that the addressable market is increasing with three, four times from the 3.5 billion to 14, 15 billion Swedish crowns. We see that the flash market is rather flat and it is not increasing, and we can see that the content creator market, especially for still photography, is flat. However, we also have now products, especially for the film and cinema markets, which all our products are positioned towards that market, as well as to the dealers and large studios and content creator economy market. We see that large still photography studios are investing in not only in flash, but also a lot into LED for shooting small, shorter films to be used in, in both e commerce, but also for for driving sales of different brands. And that market is actually very attractive at the moment. So thank you very much. I will leave the word to you leaders.

Okay. Thank you, Anders. As Anders mentioned, we see no major changes in the underlying sentiment. The customers are still a little bit affected by the cautious market environment. And this means that we actually see them decline in the top line of 13%, of which half is explained by currency effects. And also the strong launch last year compared to this year in terms of the B series this year. And I think it looks really dramatic when you see the sharp drop of 50% in the EBIT. And that is, of course, partly explained by the sales decline, but also the product mix. But also there is an accounting effect as we now start to not decrease but we're not capitalized as much as we have done in the past given the current r d portfolio and where we are and i will revert to that a little bit later so all in all is disappointed result but we are taking actions and we are seeing the first sign of our earlier communicated the cost reduction program So we see not the full effect yet, but we start to see the signs of it. And And the next slide is not really my favorite slide. As you see, it's a declining trend. And I mean, it is a tough market and it has been for quite a while. But we are really acting hard to increase and improve the top line, but also, as I mentioned, the cost side of it. So we are really motivated and have a clear target to really reverse this negative trend. We communicated that we launched the cost reduction program earlier this year and now we're starting to see the effects and during the quarter we haven't really seen it on the personal expenses yet. that is about to come during the second half of the year. But as you can see, we have run a very tight cost shift during the quarter and especially on the other external expenses. So during the quarter compared to last year, we actually saw a decline of 15% so we are on track to reduce the total cost base with 20% and we will see the full effect in the fourth quarter of this year. So that's positive and that we really have full control of our costs. And this is also despite the fact, as Anders mentioned, that we actually had some costs related to the major launches during the quarter. So despite that we continue to invest in new launches, we see the total cost base actually to decline. And this is the R&D portfolio in terms of the ratio compared to sales. And I think we have stated for a couple of quarters that now we have a really solid product portfolio. So we can reduce the R&D spend both in absolute terms, but also in relation to sales. So, we are on target to reach the 10% of sales, and that will be... You see the full effect during the fourth quarter, as this is mainly driven by reduction in personnel, which takes a few quarters to have the full impact of. And of course, we hope to see signs of improved sales during the second half of the fall. So that hopefully will help us to reach the target. But we are full control of our cost base, so we will achieve it anyway. That's basically it from my end. Over to you, Anders.