Profoto Holding AB (publ)

Welcome to the Profoto Q3 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to CEO Anders Hedebark and CFO Linus Marmstad. Please go ahead.

Good morning. Welcome to our presentation for the third quarter of 2026. Thank you for listening in. So, In the third quarter, we saw a slight sales growth, but it was a totally different demand situation in different geographic regions. And I will be coming back to that. My name is Anders Hedeberg. I'm the CEO. For those that are with me here today, I have a smart step CFO. So our net sales increased by almost 8% to 128 million Swedish crowns. The organic growth slightly less. As you know, we are acting towards a time Thank you very much. going into the cinema business. First of all, studios is similar to a project business and it varies up and down quarter by quarter and month by month. But over the years it's fairly stable. Q3 is generally a weak quarter for this business and hence it was also not a very strong quarter in studio sales. We are watching this but we're not that worried because we think that it will hopefully bounce back. But as said, it remains to be seen in the end. that we are shifting back to a higher demand level. We can also see in this area that the large photographic studios are investing more in LED and leaving the investments on flash fairly stable over quarters. So that was studio. For the creator side, this is a very large customer group. And in this customer group, you can see different kinds of creators. First of all, and this is for visual content creation, by the way. So first of all, it is the photography first. Secondly, it is the video first type of creator. And a lot of both photographers and videographers, they are asked to do both. Video and still in the same production. Our focus is to follow the customers from the video and still and this is a fast-growing part of this market. Overall, this kind of creator market is stable and is growing and there's a lot of new players, new creators starting and young creators starting in this market. They are always starting being both photographers and videographers at the same time. And they are very skilled in producing both kind of assets. So we see a lot of change and we think that we are well positioned by being the main premium brand for this kind of creators. And we drive sales in this market very much through large dealers. So we have many large dealers around the world and especially in the United States where we need to be very active together with the dealers. And you can see this in the quarter. This is part of the sales growth in the United States and North America that we managed to get our partners with us to We do a lot of activities in terms of both marketing but also a lot of physical activities like demos and other kinds of venues where we get together with our main customers. Because bear in mind that creating great light in either still or video images means that you do something by hand. It is not something that you can do online. It is something that you do in real life. We also see that a lot of these creators, they are dedicated to setting light at point of capture. Yes, they're using AI to make the images better. And yes, they're using Photoshop and other tools to make this happen. But everything happens at point of creation, point of capture, when they actually do their creation. So it is an important part of our brand and our industry, and we see growth in this area. The third customer area that we are working hard to increase is Here we are doing a market entry. We have profiled the first time that we're really selling into this area. And the sales has started, the invoicing has started, as we have communicated over the quarters. What we're doing here is that we're ensuring that the gaffers and the EOP, this means the electricians that is actually settling in, making lighting possible at the set of the cinema set as well as director of photographers they know and that they are using they've tried they're aware of and that they actually love using our products so we're working with certain great gaffers in order to ensure that they are using our products and this work has just started and we already now see a demand that gaffers are talking to other gaffers and introducing a profile of the products to each other Secondly, in order to actually ensure usage, we also need to ensure that the products are available at cinematic rental companies. And we are very successful in that, especially in the UK, but also in other parts of Europe. However, work remains to be done, especially in mainland Europe, in areas like Spain or Hungary, for instance, but also in the United States and North America. But we think that we have a very good position and we see traction in terms of demand. But in sales figures, we see some effect on this quarter's sales figures. However, a lot of work remains, and we hope to expand the sales heavily in this area. In addition to this, our lead product that this is all about, especially our pro panel, is demanded in the market. But we're also working with getting that product in. and other parts into the large photographic studios that is slowly migrating from stills only to radio and still in the same bay or in the same studio. So we are working with the main studios to ensure that they test Long-term test our products and this work has just started. So we believe, we hope to see growth in this area in LED sales over the coming quarters and also into next year. The EBIT resulted, the sales growth resulted in some sort of EBIT and we managed to achieve 90. in EBIT, but it was positively impacted not only by higher sales, but also a refund of tariffs into the United States. This was a big part of the profit, approximately $15 million accounted as a possible goods sold effect. But we're working heavily internally with strong cost control and ensure that we have a stable cash flow from home. And as I just said, the Pro Panel sales continue according to plan and we have ensured that it has been used on several productions worldwide. And one of the productions was Baywatch. You can see two of the panels here on an LED set being used. So, across the regions, We see a good organic growth in America and in India, whereas AIPAC and especially China had a slow order. In the US, we saw a total change of almost 22%, whereas 1.5% was expected, but still an organic growth of 20%. Yes! We had soft comparables last year but I would also like to mention that we have new management award in the United States which has had a positive effect on the level of activities. We have much higher market activity both directly on our own but also together with the large dealers in In EMEA, we had also soft comparables, but we had a good growth of almost 15%, whereas a small part of that was currency effect. But it is based on what we do on our own that we have a much higher activity in the European market. We have dedicated resources for the large dealers and we have a good marketing and sales team working hard in the European market. to ensure that the customers are getting the hands on our product, testing our product, and that the dealers are actively selling the product. So thank you very much all dealers in Europe. Asia. We see a soft sentiment, especially in China, but also in other parts of Asia Pacific and China. This is some sort of good traction in Japan, but that is very much based on one large brand studio that could work for us. So, anyway, this is the varied performance that you can see across regions, and we are continuing to... fourth quarter with high level of activity and it remains to be seen then how the fourth quarter will play out so over to you please okay

And then if we look at it, it looks like... But it is affected by the tariff refund of approximately 50 million. So if you have a young product, it's around 4% or 4 million, or 23% margin. So it's important to have that as an underlying performance. But if you look at the same corresponding figure for last year, it was minus 10 million. So we had a good rebound in the underlying operating result, which is... And also that we have mentioned before is that we have a fairly negative effect from the capitalization slash depreciation ratio, which is going to have a negative effect on the BNB margin as such. Next slide, please. And this is a slide that we have shown in previous quarter that we have a very good cost control. And as you can see, it has been very short reduction in the underlying cost base towards the several quarters. was as you can see 66 million in the underlying cost SEVERAL FAIRS AND SO ON WHICH AFFECTED THAT QUARTER AND WITH NOT A SIMILAR EFFECT FROM FAIRS BUT WE WILL BE ACTIVE IN THE MARKETING ON THE MARKETING SIDE IN THE FIRST QUARTER the campaign season as we always see in November so that it could be, you can expect some but all in all very strong And here is, this is to be able actually to drive sales and to be very flexible in the market, to be able to support our customers, etc. It's very important to have a solid financial position. And as you can see, we have reduced the net debt quite substantially over the last year. and now the net debt is around 150 million and you can also see that the net debt ratio to ETR has reduced to 1.2 times ETR which is And of course the last quarter has been affected from the category found in two ways. One is that it has a positive effect on the EBIT, but also that we actually saw the cash in the business. So that is what is in this equation. But all in all, that is all that we have.