SonicShares Global Shipping ETF Price & Performance (BOAT)

Thank you. And I want actually to start with a very first picture, a very colorful one and it's showing our new [indiscernible] The last boat in that totally new series. And of course, we have great expectation of that one. Already sold, there's so much that we actually need to increase the production volume, which is, of course, very good. If you don't switch think you all know us, but Janjik Lindstrom, CEO. Some key takeaways then from 24 since it's the quarter 4 we're talking about. We have continued the execution of our strategic plan and that we have done then by our focus on the premium products. And among other things, we have then entered an additional premium segment with our larger boat to 4.95 which we have then actually sold more than 1 year's production It was launched in Kann during the autumn of 'twenty 4. On the other side of the coin, we have also initiated the closing of the our own valuable production in Finland. And that is then, of course, to be able to fully focus on the premium boats. Traded boats is important, where value boats is important, and we will then use them as traded boats for our own [indiscernible] Which we'll ourselves done.

We continue the North American expansion. We have established partnerships with several key distributors during the year. And big ones, which we are, of course, proud of. That they want to sell our products, but also that we find the ways to make these deals. A milestone then, you may say, we have also started the production of the very first Nimbus branded boats in our own factory in U. S. And that happened actually already during quarter 2. [indiscernible] We have continued to develop the concept with our Flex [indiscernible] due to the softer market this year have actually had a scale down then, slightly about 30%. But that figure also includes then the valuables. Already mentioned anyway, we have densified the dealer network but we have also then continued the expansion outside North America. So that is actually then a global [indiscernible] We have set up our new organization structure to support the operational structure. Basically, we're talking about one business model with some key activities that supports this model then. I will not go into deep to that, but we have talked before about the differences between value boat sales and premium boat sales, which means that we have more or less had 2 business models inside our organization.

Which of course gives us some inefficiency and things like that. We have also done and I will usually say that this is one of our absolute cornerstones, the brand and product portfolio has had some development And we have had the during the year then, we have the prelaunch of the AquaGuard [indiscernible] HT Yes. I and that happened in November, and that was a lot of journalists and it was also a lot of dealers there, which makes us proud, of course. This great interest. We had the name this 495 in Cannes, and we have also then initiated the update of the product portfolio. And we will start actually launching a couple of them during 2025, also excited to see what happens there, of course. Also a key takeaway of course, then, is the new market opportunities. With the Allergan 400,000,000 order from the Swedish Armed Forces. Great. Expectations on that too. I will come back to that one. If we switch the page to a question. And some business update then. For the Q4. For us then still, a small quarter. But it is impossible to not start then with the increased order intake during the quarter 4.

Actually then year over year plus 53%. And if we add to that the year over year figure from the quarter 3, which was 18%, you all understand that things starts to happen sale amounted to SEK274,000,000 [indiscernible] by 25% 24%, sorry, for the quarter, but also please the full year was 15%, also important that bring that with you. [indiscernible] due to, of course, lower volume And then we had during the quarter, we had the tough decision then to actually close the factory in Karpio after finalizing the union negotiations. We, of course, try to sell, but the present business climate did not support that thought. So this was what we had to do. Simple as that. Current sales then do not fully leverage our investment in business model, meaning that we are prepared for a normalization and you may even say a normalization with plus And that is what we need then to actually utilize our resources. We had the right issue, €356,000,000 to mainly then, you should say, support the growth strategy that we have in our business plan, but also then in general, so strengthen our financials and that was then successfully completed in January. 'twenty five, so just recently, in the beginning of January.

Already mentioned then the Alcon order, which gives us then this which happened then during the quarter 4 and of course gives us interesting business opportunities. In this for us then. I should not say new segment because we have done it before, but in the Nordics, which is important. [indiscernible] And then we also mentioned here because a lot of effort a lot of work was done during 2024 with the launch of the AquaGuard and, of course, the premier at the Dusseldorf Boat Show. And also Nivas 495, which actually then get awarded the powerboat of the year 2025. A lot of proud in that one, of course. Also happened then during this month. Short summing up then of who we are. Founded in 1968, meaning that we have a lot of experience, an old company, We are now talking about the Nimbus brand, which is the key then in the Nimbus group or the initiator. We have a long history of international trade, which is then of course always important, but maybe especially now then. Taking into consideration how the world actually looks [indiscernible] We have a true house of well known brands, and now we are then again focusing on our premium brands.

Own establishment in North America 2022 in Annapolis. Important milestone, the acquisition of Edgewark Powerboats which gives us, among other things, Dan, but a premium brand, of course. We also get a full functional organization to support our business in North America. And as we say here, it's enabled us to actually have this local US production which then started in quarter 2. 2024. We also had the launch then again of the €495, and in the larger premium segment there, which we haven't been before. [indiscernible] the governmental segment with orders from this Swedish Armed Forces. If we then switch yes Then if we look at the order book development, I have already been there. Order intake plus 53%, and [indiscernible] driven then mainly by the Nordics You can see that plus 102%, of course from low levels, but still important. And also Europe, plus 95%. The order book amounted to SEK574,000,000 lower than last year, SEK759,000,000 but I will come back [indiscernible] We saw a drop in our sales in Rest of the World Of course, we are investigating and [indiscernible] close to that question. But let's see what we had the same time last year was a lot of sales to dealers.

So it was not selling through at that moment. But we will come back to that, of course. Indication in Q2 then of a shift towards the shorter order book that we talked about. Has now been time wise then more or less been confirmed. So what we see then is this normalization that we have talked about. Of course, positive effects from Nimbus 4.95 and also the Allukin, but then please remember the orders from the Swedish Armed Forces are not included. It's only the pre series. I think it's 34 maybe 5 boats of that order only. Included in this one. So it's more to come. And as always, only confirmed orders in the order book. With prepayment. And if we look on the right side, you see the short there and this is then for us extremely interesting chart to follow. And if we look at the right side of it, you see that the quarter 4 then actually is bigger than both quarter 2 and 3. And that was a while ago since we lost saw that one. And that is this normalization I'm talking about. If we do a comparison with the quarter 4 2019, it's it's way back, you can say, but we had some disturbances during the pandemic and things like that with with the statistics You can be both happy and sad of the pandemic, of course, but it disturbs what we can call a normal market and what is a normal market.

But important then to bring with you is that it's not the same rule book when we look at the quarter 4 2019 where we have done this 42% of the rolling 12 already secured for the next year now. Down. It's only this only confirmed with prepayment was not used at that time. So it's a bit more orders than we would have today. And with that, I leave it to you, Rasmus. Thank you, Omerich.

Now we move on with sales per market. And Starting with the quarter, the North American sales dropped by 29% to €113,000,000 and the drop was driven by lower sales from the Edge Water brand driven by the situation over there. On the other hand, the Nimbus brand increased its sales by 4% year over year while the market as a whole was down about 8 percent during the quarter, mostly driven then by smaller boats. But still it was down The Nordics went up by 26%, then the positive signals from the Q3 has been confirmed in the 4th quarter. Even though that Q4 is a relatively small quarter, as Jon Erik mentioned before, in the Nordic region in terms of sales but we see that the market has started to recover in both increased sales and in terms of increased order intake. The Nordics was the 1st market to turn down in 2022. And now it seems to be the 1st market also to recover Sales in Europe continued to drop and went down by 25 21% in the quarter. This is due to an improvement in relation to the 3rd quarter when the sales dropped 61%. In relation to our expectations, Europe has been a disappointment during 'twenty four.

Which has had a big impact on our P and L and inventory. During the entire 24 But as indicated, we know also see some positive signs there. In terms of increased order intake in relation to last year. Other markets went down to 0, but important then to me, as Jon Erik mentioned, last year was affected by filling up stock levels at the new dealers' showrooms. And other markets only corresponds to less than 4% of our annual sales. So it is a small market for us. But still, of course, hope to improve there. On full year basis, we do see that North America has been flat. With increased sales of the Nimbus brand by 20 7%, while Hgewater dropped. The reason for this is related to somewhat pushed sales in 'twenty three, by the former owners of Edgeport. We have been working with adapting the dealer stock levels to reach preferred levels which have had a negative impact on the but also the profitability. But the efforts have given in and today we see that levels all well balanced. Model year boats in stock. Sales development in total then. Net sales in the quarter amounted to SEK 273,000,000 which is down 24% year over year.

The organic growth was minus 25 percent and the drop is driven by commercial sales. Commercial sales represents sales to external dealers and direct sales, including spare ports. And is a new definition that we will use going forward for this segment. Retail sales, on the other hand, which represents sales from own dealers, has improved and went up by 52% to €76,000,000 in the quarter. But important here is that the Q4 is a small quarter for our own dealers since they are heavily dominated in the Nordics. On the full year basis, the net sales ended up at €1,690,000,000 which is down 15% and the organic growth was minus 14%. Then the EBITDA development, [indiscernible] the EBITDA ended up at minus €60,000,000 compared with plus €100,000,000 last year. Then it is important to start with mentioning that it 24 was affected by some strong negative factors that will be nonrecurring in 2025. Amounting to in total about 110,000,000 [indiscernible] a production stop that was made in the Q1 in each quarter. To balance out high dealer inventory levels since 2024. And as I said before, these are related to pushed sales that happened before Nimbus took over in May 23.

By the former owners. And this affects some to minus €23,000,000 And secondly, the restructuring provision of €55,000,000 that was taken in the Q3 for closing the production in Finland. Has affected the P and L as well. And thirdly, the Finnish valuable business had driven losses of about €30,000,000 during 'twenty four. Which will also will be nonrecurring in 'twenty five as a consequence. The remaining cost side [indiscernible] 3rd quarter. And in addition to this, there's also a big strong effect from customer absorption from lower sales and production volumes. Net sales dropped by 15%, as we mentioned, year over year, but in relation to what before cost and planned for in front of 24, the sales has dropped by plus 25%, which, of course, have had a strong effect on both profitability 24 and inventory levels by the end of the year. We have reduced production capacity by 30% but timing effects when reducing the capacity has delayed impact from the taken decisions Since June 23, we have reduced our full time employees from 684 to 377. Then we move on with the cash flow. The operating cash flow in the Q4 amounted to net -26 compared with - 69 last year.

The net working capital increased a bit in the 4th quarter and then [indiscernible] ended up at 620, which is up CHF 57,000,000 since the Q3. The increase is driven by both noncash driven currency effects from the U. S. Business and increased levels of inventory. The net working capital is, of course, then affected by those higher levels of finished boats, mostly driven to the softness that we have seen on the European market, which has caused less in for outsales than expected, as mentioned before then. Net working capital in relation to LTM sales amounted to 38 percent versus 30% last year. And that I leave the word to you, Jan Erik.

Thank you. Financial targets, we don't see a point to actually change them, meaning that we see a growth above 10% during a business cycle then. We see that the EBITDA margin should be 10% or 10% plus on a midterm basis. The capital structure will be that we don't want to have any senior debt and we don't have any except then for debts related to property. And of course, we want to be a company that distributes our profits. So the dividend policy of 30% will still is still valid. Ongoing. [indiscernible] a little bit about what we are focusing on for the moment and for this coming year. We will then of course have the continued focus on the cash release as as Prasnus mentioned before, that we have 38% and that that should be down, of course. And we're still fine tuning, I should say, then in our cost out program. The major part is done during 24, but it's fine tuning to do. We will finalize then the departure from production of value both by our own we would still produce roughly a half year in Finland, but then it's all done, so to say.

So it's according to plan. We will continue then to work with our new organizational setup and that is then of course aiming to clarify responsibilities and improve the accountability And we are also then certain that this will also give us both an increased performance by this inefficiency I talked about before, more efficient but also transparency for you listening in from the outside to be actually easier for you to follow us. What is our business so to say. You may say that it's a bit opportunistic, but of course, we aim to capitalize on the market opportunities then in the weak business. That we have in this business environment. Of course, if possible, and we see some signs of that business will come back and then These opportunities may disappear, but we are aiming to to see if we can find something that is really interesting, of course. We always do that, of course. Ambition still then to fully utilize benefits from our local U. S. Production and then we're talking about our own production of course, also the outsourced capacity. And during this changing market conditions, it's getting even more important. And we are already organized to monitor risk from possible then escalated trade barriers with our present footprint [indiscernible] And with that, I actually give the word to Yunila.

Yes. And I give the word to Jess Min to see if there are any questions from the telephone.

Pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. There are no more phone questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Thank you very much. There are no written questions. So I just want to remind you that our Q1 report is due 29th April and our Annual General Meeting for 24 is on 16th May.

So thank you very much and thank you, Janirik and Rasmus. Thank you.

Thank you.