Welcome to the Rebelle Audiocast with Teleconference Q1 2022. For the first part of this call, all participants will be in listen-only mode, so there's no need to mute your own individual lines. Afterwards, there'll be a question and answer session. Today, I'm pleased to present Cécile Wickmann, founder and CCO, and Alexander Uhlenberg, CFO. Please begin your meeting. Hello, everyone, and welcome to the presentation of our Q1 numbers 2022. With me on the call is Dr. Alexander Uhlenberg, our CFO, and me, Cécile Wickmann. I'm the founder and Chief Communication Officer here at Rebelle, and we are happy that you all took the time. Referring to the slide number four, I'm happy to guide you through our key developments over the last quarter. As probably many of you know, Rebelle was listed on Nasdaq First North Growth Market at the end of February this year, and we found ourselves in quite a challenging situation globally. We listed the company one day after the war broke out, and we still see that there's, like, it's quite, let's say, a tricky time. We managed nevertheless to raise SEK 200 million via a capital increase from existing and also new shareholders, and no secondary shares have been sold within this IPO process. In Q1, and I think that's a very good news, we uploaded a record number of new products onto our site. In a few moments, I will, for those who are not that deeply into the Rebelle business model, explain how the marketplace is working. As a marketplace, obviously we always look on two sides, on the sourcing and on the selling side. On the sourcing side, the quarter went extremely well with roughly 120,000 new products being uploaded to rebelle.com. Thus, it also topped the quarter, the Q1 in 2021 by roughly 17%. Also, the development of our average basket sizes is very positive. It amounted to EUR 294 in Q1 2022, which represents a 7% increase versus the same quarter last year. This was mainly driven by an increasing number of commercial seller products. Also for those of you who are not aware of this, Rebelle's portfolio reflects as well private products listed by private individuals, as well as commercial seller products by professional luxury second-hand shops and others. Especially these commercial sellers normally list very attractive and high-priced products onto our website. On the right-hand side of slide number four, you see, like, some, like, a small summary of our numbers. Alex Uhlenberg is here also to guide you through it a little bit more in depth in a couple of minutes. To mention the most important figures, it's the net sales, which is our net transaction value onto our marketplace, which amounted to EUR 6.33 million, which is less than the same quarter last year, where we saw net sales of EUR 7.3 million. The revenues amounted to EUR 1.7 million, and the adjusted operational loss amounted to around EUR 1.5 million. Now I would just as a remark and also a reminder maybe for those of you who haven't been in touch with the Rebelle business model over the last weeks to guide you like very briefly onto like our operational setup and also what the Rebelle business model generally is about. Here I'm referring to slide number six. When we are talking about Rebelle, we are really looking onto a truly sustainable high-end fashion model. It's all based on the idea of circularity in fashion. We are always talking about huge products when we're looking into our product portfolio, and it's a managed consumer online marketplace which is existing in currently five different European languages for around 3,000 different high-end and premium designer brands. By offering this marketplace, we are not only providing the technical platform, but also a very intense value-added service where we assure every single product authenticity, quality, and the right price. On slide number seven, it's just a summary that whatever you look at Rebelle, it's 100% second-hand goods, like always following a 100% circular approach, and the digital channel is our one and only trading channel, so we are a pure e-com company. Referring to slide number eight, like we just summarized a little bit, the market situation here when it comes to the fashion industry, which is currently responsible for around about 4% of global greenhouse gas emissions, like, really one of the dirtiest industry in the world. This also, like, really led us to the idea to come up with a very sustainable alternative. By 2023, the fashion industry will need to cut its emissions by roughly 50%, and therefore, we came up with, like, the very simple approach to say, whenever we all manage to kind of just wear products longer or just keep the products longer in the life cycle, we would be always there. It would be much easier to meet this target. For now, I would really say that it becomes just so much more interesting also for the consumer point of view, to kind of shop sustainable products in the fashion industry just because there's, like, the offer is so much bigger. In terms of second-hand, there's like really also many players out there and also services, which makes it very easy and also from the hygienic point of view, like a completely different game than when we started back in 2013. We see that sustainability becomes like really a number of key reasons for especially the younger generation to shop second-hand products. Referring to slide nine, we show a market trend and a market development. We are targeting a huge EUR 400 billion global primary market, of course, with like the European market having like a huge influence in terms of luxury products. We see that the second-hand segment especially is really outgrowing the market with an estimated CAGR of around 50% in the coming years. It really is not a niche, but a really big mega trend, which I see we will all see growing, in the coming years. Why Rebelle is so much focused on the high-end segment has several reasons, and we really stick to this since the very beginning. It's first because designer items, obviously, there's a very high demand for it. This demand is, like, quite similar in every single country. When we talking about luxury brands, we are really referring to brands such as Prada, Gucci, Chanel, Hermès, Louis Vuitton, et cetera. So like the most luxury fashion brands in the world, which would probably also cross on your mind when you think of luxury goods. This also means that especially these brands themselves, they have very limited distribution policies, so also the competition is not that big in the space. Of course, these products remain super valuable even though they have signs of use. Talking about the managed marketplace, now I'm referring to slide number 10. As I said, has the target of two different user groups, the buyers and the sellers. For these two different user groups, a service like ours obviously also needs to focus on two different USPs. For the sell side, the most important thing is to offer a very time-efficient, all-inclusive consignment service, which we are doing, and not so many other competitors are in a position where they can offer this, also due to a very complex operations set up you would need. Of course, also to ensure the right pricing data, as also this is one of the key questions from the sell side. For the buyer, on the other hand, the most important point, like paired with a high-end shopping experience, is of course a guaranteed authenticity. Because you can imagine with a basket of roughly EUR 300, on average, we are also trading a lot of volumes in the very high-end space where you pay several thousand euros for a new watch or like an Hermès bag. Authenticity is really a key part of our service. Now, I would like to hand over to Alexander, who guides you through some more financials. Yeah. Hello from me. We're now on page 12. Of course, the key event for us, and you can imagine that it was a huge event for us, was the IPO at Nasdaq First North Growth Market when we rang the bell on 25th of February. It was an emotional highlight and a weird situation at the same time because one day before the Ukrainian war had broken out and, so, yeah, a very strange coincidence for us. That's the way it was. Let's look at some development of the company in this quarter, which is also to some extent overshadowed by the situation. As Cécile already mentioned, we saw a very strong development on the inbound side, which is always good in the long run because of course the more inventory we have, the more we can sell in the long run. On the selling side, it has been a difficult environment. If we're looking at the performance within the quarter, we saw that we had a slow start in January. Our core market in terms of selling, where we sell goods to is Germany, where we're having more than 60% of our customers that are buying on Rebelle. In Germany, we saw that January had a slow start as the COVID situation dragged on longer than everyone had expected. That eased considerably in the beginning of February when we saw a significant pickup in the business, but only for like, for about, I would say, the first 10 days or so. When it became clear that the war was really not only a fear, but actually something that was going to happen. Pretty much in parallel with the development of the stock markets, which became more and more volatile, we also saw that our customers became more and more hesitant to buy, and we had a significant drop in order volumes. We're obviously not satisfied with the numbers that we're going to go through in a second. Of course, we are doing quite a few things to boost the performance and accelerate our growth once again. As of today, we have to say that still the situation is overshadowed by the Ukrainian situation, where here in Germany, we can feel it at every corner. There's a big direct impact because we have a lot of refugees here in the country and so on. Also it's very big indirect impact that energy prices are going up, inflation is going up very significantly, and people are just much more hesitant to buy. At the moment, we're having the worst consumer confidence index for the last few years. Nevertheless, of course, we are thinking in the long run, so we're working on a number of measures to boost our performance. Also we have started a few growth initiatives that were enabled with the capital raise from the IPO, and that is especially the ramp-up of our marketing team. Everything in our business that we do is technology. I meant with our technology team. Everything in our business, every new idea that we're having is driven by technology. Our entire business is run by technology, and therefore, it's a key prerequisite for any business development that to have a very sizable and strong technology team. We started to boost that up, and we also started to ramp up our marketing campaigns because, of course, now we have different opportunities or different means from the capital raise in the IPO. None of these things will change the situation overnight that we're having at the moment, and of course, it will not change the market at all. But in the long run, we are quite convinced that this will help to establish Rebelle as an even stronger player in the future. We also talked a lot during our IPO about M&A, and we are starting to devote considerable resources to M&A, which is, of course, a new opportunity that we can pursue. We've moved on to page 13, please. There you see the development of our sales. In Q1 2022, we achieved sales of SEK 6.3 million. That's a considerable drop against the same period in 2021. One has to say that was a very good, extremely good period, as you can see from the chart. In Q1, we had the effect that, there was a very favorable environment for online marketing, which made it very cheap to generate traffic. It was hard to fight against that quarter in any case. Nevertheless, we would have liked, of course, to reach and exceed this quarter of the previous year. If you compare the business performance to Q4 from last year, this is a flat development. We're moving on to page 14, please, where we're just, it's showing, and I'm sure these are charts that many of you are seeing every day. That, of course, it's not only a matter of, like, feeling—a feeling of uncertainty and sort of shaky market environment—but we're seeing it also in a lot of statistics. The consumer price index has risen to a level that is unprecedented here in Germany for the last, I guess, 30 years or so, with inflation moving now in the direction of 10%, on a year-to-year basis. We're also seeing that on the right-hand side of the slide, that this is having a very direct consequence for consumer confidence. Of course, that doesn't create a bad environment actually for selling the types of products that we are selling because everyone loves our products. It's I think we are having like a huge inventory of beautiful and unique pieces, but it's nothing that one really needs if you look at your daily needs. It's a very discretionary product. Let's move on to page 15, please, where you see the development of our revenues that goes more or less hand in hand with the development of the total sales. We're also seeing if we compare the situation to Q1 of 2021, we're also seeing a drop in commission rate that is caused by an increasing share of items that we're receiving from commercial sellers. These items normally are quite expensive and high price. They will be charging a lower commission, and that's also one of the drivers behind the good development of our average shopping baskets that Cécile mentioned earlier on. At the same time, the commercial sellers are also doing more. For the commercial sellers, we typically do not take photos and we are assuming we don't store the product and so on, which is why our commission rate is also cheaper than for private sellers, where we typically do much more of the work. In terms of revenues, this of course has a detrimental impact on our take rate, but it also has a beneficial impact on our unit costs. We're moving on to page 16, where you're seeing that in Q1, we reported an operating loss of EUR 5.3 million. That is very much driven by three types of extraordinary effects that all relate to the IPO. First of all, in Q1, we converted some legacy employee stock options, also to the benefit of the management team, into ordinary shares, so that it was a pure non-cash conversion, but it still gave rise to a loss in our P&L. The second point is that, of course, we incurred significant expenses for the IPO. The third point is that the IPO gave rise to a profit participation that we had with a major German media group with their subsidiary, SevenVentures. That has been now settled with the IPO. Therefore, the real adjusted operating loss amounts to SEK 1.5 million, which compares to a break-even result that we had one year ago. That is of, on the one hand, driven by the drop in revenues that we discussed, and on the other hand, by the increasing costs for growth measures that we'll look at on the next slide. We'll move to page 17, please. Here, first of all, you see again in numbers the extraordinary effects. You see that of the extraordinary effects related to the IPO, EUR 2.6 million are the non-cash effect from the stock options, from the conversion of the stock options. You're seeing that the exit participation gave rise to charges of EUR 396,000. The third one was that we had IPO costs in the PNL of just short of EUR 800,000. Let's look at the real operational costs where we also had a significant increase, and there we are moving to the two points that I already mentioned that are marketing costs, where we had an increase by more than 100%. We had EUR 495 thousand in marketing costs in Q1 2021, and now we're at EUR 1.24 million in Q1 2022. This is, of course, exactly why we wanted to do the IPO, because in the long run, our business lives and, you know, grows via marketing. If we don't market our service, then we're just not getting any significant number of new customers. It's not something that is happening overnight. This is something, especially since we are one of the key USPs of Rebelle from a customer perspective, certainly our very strong brand. We're investing a lot of our marketing into brand online marketing, brand building. That is a journey that will continue throughout the year, that we'll invest more and more into the marketing to build the brand, increase our direct traffic in the long run, increase new customer intake, and therefore, increase in the long run our order volumes. The other thing is that you're seeing that we increased costs for wages and salaries, and that's there. The key driver I already mentioned is the expansion of our technology team, but we also use the opportunity now to boost a few other functions in the group. Also in my area, where, of course, with now being a listed company, we have additional responsibilities in terms of reporting and accounting and so on. We're moving back to page 18, please, and I would hand over to Cécile. Okay. Yeah, this was also what, like, our major goal has been over the last months to kind of grow the company to around about SEK 100 million in GMV by 2025. This is like also where the IPO laid the basis for, and what we still are very convinced of, even though that the environment is a little bit shaky right now. We see that the market is developing well and that the consumer, I mean, the consumer confidence will rise. Also, in terms of, like, the perception of the second-hand market and the importance of circularity, I think we are on a very good way. For that, we have built a robust and scalable foundation over the last years with a strong operational setup with already critical mass in terms of product, buyers, sellers. What I meant with robust operational setup is really what we call single item factory, which we needed to really process the single-piece product, which almost nobody else does. With the money of the IPO, as Alexander also said, we are intending to not only grow organically, but also look deeper into the M&A space. Moving to page 19, and also we only have two slides left, and of course, also with you wanted to close with a little bit of a positive outlook, not only on the market but also on the internal side. is to remind you that from how we see Rebelle today is that we really have a scalable and capitalized marketplace here in the second-hand luxury space. We don't have working capital involved, which makes our business model very effective. This also leads to the fact that we almost have no returns because we are ourselves not the owner and so also not the one offering the product for sale. The items we are offering remain very unique. Together with that, we see still very robust KPIs, roughly a 30% commission rate, even though this has suffered, as Alex explained a little bit earlier. Nevertheless, to have like a higher rate of or a higher degree of commercial sellers is not such a bad sign actually. We have quite nice shopping baskets with roughly a value of EUR 300 and very strong loyalty among our customers on buy side and on sell side still. In general, the business model itself by nature creates quite high entry barriers. First, of course, due to this, what I call the single item factory, this operational setup, which is like very self-made, let's say, and needed quite a lot of investment, also in terms of time, efforts and knowledge. Of course, the marketplace always needs critical mass, which we have gathered over the last years. Coming onto our last slide, like, we really want to become the first European mover in sustainable luxury re-commerce. We already managed to become the first green IPO globally on the Nasdaq. We have a very strong ESG mega trend which pushes our industry and the circular economy in general. Yeah, I think we can both say that we remain very confident for our segment and also for our company to overcome this difficult situation which we globally see right now. Thank you so much for your attention. Now, we still have time for a Q&A session. To all of you who have some remaining questions, please, like, just let us know. I think we have, like, the call being moderated, so hopefully we'll be ready to answer your questions. Thank you. If you wish to ask a question, please dial zero one on your telephone keypads now to enter the queue. Once your name's announced, you can ask your question. If you find it's answered before it's your turn to speak, you can dial zero two to cancel. There'll be a brief pause now while we register any questions. Okay. It seems currently there are no questions coming through on the phone line, so I believe Jonas would be checking if there were any questions via the web. No, no questions on the web either. Makes you able to conclude the call, Cécile. Thank you, everyone, from Alex and my side. Of course we are here in case there's some questions arising afterwards. You can always send them by email. Wishing all of you a good day. Thank you very much.