Slides
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Financial Hearings Audiocast Q4
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We help brands grow and partners increase sales online 2007 Founded 2021 First international office (Finland) 2014 Listed on Nasdaq First North
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 2025
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The short story Q4 and 2024 Weak market, negative growth for Adtraction (Nordics) Adtraction remains profitable Strong cashflows Dividend of SEK 2 per share Acquisition of Adrecord on October 1 Divestment of Klara Lån still impacts GP growth Focus, back to growth - growth currently expected Q2 20255
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Growth Profitability Cashflows
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Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
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Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
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Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
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Q4 Growth rates Q4 Sales 344,3 MSEK, -8% Gross profit 65,8 MSEK, -8% Profitability Q4 EBITA of SEK 18,4 MSEK, -28% growth Margin of 5,3% Cash Flow from operations SEK 30,5 million Dividend SEK 2, to be paid in 2 tranches
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2024
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A bigger picture, sales KSEK
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Long term gross profit (MSEK) GP Klara Lån (divested Q2-Q4 2023)
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2024 Financials Gross profit 231 MSEK Net sales 1 203 MSEK EBITA 51 MSEK Operating CF 52 MSEK
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2024 Financials Gross profit 231 MSEK Net sales 1 203 MSEK EBITA 51 MSEK Operating CF 52 MSEK
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Net sales 1 203 MSEK 2024 Financials Gross profit 231 MSEK EBITA 51 MSEK Operating CF 52 MSEK
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Net sales 1 203 MSEK 2024 Financials Gross profit 231 MSEK EBITA 51 MSEK Operating CF 52 MSEK
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Many brands rely too heavily on the big platforms
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Partner marketing is needed
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60%
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Example of traffic sources Behaves like monopolist; pricing, closed accounts & verticals Google is a monopolist, 90% market share
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Reduce risk, spend more on partner marketing
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Privacy
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Facebook/Meta (lack of) privacy
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Partner marketing is complex and optimisation is needed
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Adtraction is needed
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Why partner marketing? Expand your reach Pay only for sales
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Three things to consider Distribution Quality Optimisation
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Why Adtraction? Active partnership management Quality partners Local presence, European reach
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Why Adtraction? Active partnership management Quality partners Local presence, European reach
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Why Adtraction? Quality partners Local presence, European reach Active partnership management
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Financial goals Net sales growth EBITA margin goal Dividend > 7% > 20% 30-60%
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Sales growth
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Negative gross profit growth in Q4 Divestment, -5% Geographical expansion Growth in existing markets, -8% M&A, +5%
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Number of employees
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Cost base per quarter Restructuring cost of SEK 2,7 million in Q4, Adrecord SEK 2 million
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EBITA margin
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Q4 2024 ● -8% growth Net sales Gross profit EBITA Adj. net result/share -8% ● -8% growth ● -3% core bis ● Stable gross margin ● EBITA decrease 28% ● EBITA margin 5,3% ● Costs stable + Adrecord ● One off items 2,7 msek ● Decrease to 0,93
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Q4 2024 ● -8% growth ● -8% growth ● -3% core bis ● Stable gross margin ● EBITA decrease 28% ● EBITA margin 5,3% ● Costs stable + Adrecord ● One off items 2,7 msek ● Decrease to 0,93 Net sales Gross profit EBITA Adj. net result/share -8%
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Q4 2024 ● -8% growth ● -8% growth ● -3% core bis ● Stable gross margin ● EBITA decrease 28% ● EBITA margin 5,3% ● Costs stable + Adrecord ● One off items 2,7 msek ● Decrease to 0,93 Net sales Gross profit EBITA Adj. net result/share -28%
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Q4 2024 ● -8% growth ● -8% growth ● -3% core bis ● Stable gross margin ● EBITA decrease 28% ● EBITA margin 5,3% ● Costs stable + Adrecord ● One off items 2,7 msek ● Decrease to 0,93 Net sales Gross profit EBITA Adj. net result/share -27%
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Q4 2024 - Verticals ● 0% growth ● 9% Adrecord ● Growth on 7/12 markets ● -8% growth ● Growth on 2/12 markets ● Klara lån divested E-commerce Finance Other 0%
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Q4 2024 - Verticals ● 0% growth ● 9% Adrecord ● Growth on 7/12 markets ● -8% growth ● Growth on 2/12 markets ● Klara lån divested E-commerce Finance Other -8%
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Q4 2024 - Verticals ● 0% growth ● 9% Adrecord ● Growth on 7/12 markets ● -8% growth ● Growth on 2/12 markets ● Klara lån divested E-commerce Finance Other -92%
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Q4 2024 - Geographies ● -11% growth ● -5% core bis ● 2/4 markets grow ● 3% growth ● 3/8 markets grow Nordics Europe -11%
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Q4 2024 - Geographies ● -11% growth ● -5% core bis ● 2/4 markets grow ● 3% growth ● 3/8 markets grow Nordics Europe 3%
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Q4 2024 - Cashflow ● Strong quarter ● Working capital fluctuate ○ Process improvement Q3 ○ Work in progress for Q1
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Q4 2024 - Cashflow Investing activities -23.7 MSEK (-2.6) Okt - Dec 2024 Financing activities -14.6 MSEK (0.0) Okt - Dec 2024 Operating cashflow 30.5 MSEK (34.4) Okt - Dec 2024 Total cashflow -7.9 MSEK (31.8) Okt - Dec 2024 Net cash 107.1 MSEK (116.0) 31 Dec 2024 ● Strong quarter ● Acquisition of Adrecord ● Dividend ● Strong net cash position
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Klara Lån EBITA Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Adtraction 9 367 14 665 23 867 25 842 10 387 Klara Lån 352 237 505 -281 225 Combined 9 719 14 902 24 372 25 561 10 612
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New regulation - consumer credits SE Already law ● January 2025, interest deduction, gradually phased out ● March 2025, interest rate cap 20%, cost cap Proposed law ● July 2025, everyone needs to be a bank (clearly a completely disproportionate measure)
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M&A? Maybe not now ● Few sellers on the back of 2024 numbers ● Multiple arbitrage? ● We expect more opportunities when the market recovers
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What’s happening now? Q1 and Q2 ● Q1 2024 the last quarter with Klara Lån numbers ● Adrecord migration in Q1 ● Broader advertiser portfolio and service offering ● Back to Growth is the main goal for 2025 ● Q1 growth in line with Q4 ● Back to growth in Q2
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Q&A