Welcome to the Fractal Gaming Group Q2 2025 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 five on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now, I will hand the conference over to speakers CEO Jonas Holst and CFO Karin Ingemarson. Please go ahead. Hi everyone, and welcome to today's presentation of the Q2 2025 report for Fractal Gaming. In this call, we'll walk you through the key highlights from the quarter, focusing on our business status, our financial performance, and the strategic progress that we have made so far this year. We are pleased to report that Fractal has maintained strong momentum throughout the second quarter, resulting in the strongest half-year in our history. At the same time, we continue to navigate an uncertain macroeconomic environment, but we have a clear plan in place to mitigate the effects. Today, we'll talk both about our achievements and the challenges that we are facing, and as always, we're happy to answer your questions at the end of the call or individually afterwards. Starting by looking at the highlights, Q2 was another standout quarter for Fractal. It was marked by continued strong performance driven by our strategic initiatives in combination with an increased end-consumer demand. We are really pleased with the results, proud over the momentum that we've built, and how we are able to strengthen our global presence during the year. Our total net sales reached SEK 215 million, which is an increase of 50% year-on-year, with an organic growth in U.S. dollars of 66%. Looking at USD sales, it is the third consecutive quarter that we are reporting the second highest net sales figure in a single quarter in our history. All regions contribute to the strong growth, but Americas stands out with over 60% growth, driven by strong consumer demand, record sales on Amazon, and successful product launches. Sales out to end-consumers grew by 40% in the quarter, with robust performance across all regions. This was fueled by consumer demand, particularly following the spring launch of new GPUs, which accelerated the upgrade cycle amongst gamers. Our strategic initiatives, with the successful launches of Scape and Meshify 3, combined with a sharpened focus on channel management and disciplined price management in the American market, also boosted this development. Further, we worked hard to replenish the low inventory levels that we saw at the end of Q1. This contributed further to our strong top-line growth and positioned us well for the fall. All in all, these achievements underscore the effectiveness of our strategy and our ability to adapt to market opportunities and operational challenges. EBITDA rose to SEK 20 million, with a margin just over 9% compared to SEK 7 million and just below 5% in the same quarter last year. Our product margin for the quarter was 36%, impacted by external headwinds from tariffs, higher freight costs, and currency fluctuations. We aim to improve these margins in the coming quarters as the measures we put in place to address the macroeconomic challenges begin to deliver results. Finally, we closed the quarter with a strong net cash position of SEK 66 million, and we continue to invest in future growth by driving innovation, winning design, and international expansion. In Q2, we introduced several important additions to our product portfolio, and they have already made a significant impact on both brand and financial results. The launch of Meshify 3 marked the next chapter for this important series, and it has quickly earned praise from the media for its exceptional airflow, thoughtful engineering, and ease of assembly. Meshify 3 is reinforcing our leadership in the high-performance case segment. We've integrated subtle lighting directly into the case, and the series is offering a range of configurations, lighting options, and colors that cater to a wide spectrum of gamers. In combination with our new high-performance momentum fans, it enhances cooling performance and allows users to personalize their builds. We've also launched Adjust Pro and Adjust Pro Hub, a combined software and hardware solution that enables users to control lighting and fan settings on various Fractal products through a web-based tool without any installation. These products strengthen our position as a leader in the market. It's setting a standard for what a modern gaming setup can be, and it ensures that Fractal remains the brand of choice for today's gamers who increasingly value both performance and design. The quarter also marked a major milestone for Fractal as we entered the audio category with the launch of our first gaming headset, Scape. With Scape, we brought our Scandinavian design philosophy and focus on core functionality into yet another product segment. It is designed to blend into modern gaming setups, offering minimalist aesthetics, discrete lighting, and wireless charging dock. Scape was developed in collaboration with our community, and the market response has been outstanding. It quickly became a top seller at major retailers, reaching the number one spot at Newegg in the U.S. and ENET here in the Nordics. It has received excellent reviews from both media and early adopters. With Scape, we are reinforcing our commitment to enhance the entire gaming experience. It demonstrates, just as Refine did last year, our ability to challenge norms in the market and to deliver products that resonate with both enthusiasts and mainstream gamers around the world. Now, let's also take a look at the broader market development. In this quarter, we saw a clear lift in demand thanks to the launch of new, more affordable graphics cards. These new GPUs have made advanced features accessible to a much broader group of gamers as prices have started to stabilize and availability improve. This is great news for consumers and for the industry, as it is boosting the upgrade cycle for the entire PC market. Further, major new game releases like Elden Ring Nightreign or Doom: The Dark Ages are further driving the need for next-generation hardware. As we predicted, we are also seeing a shift in what gamers want. Today's gamer is older and more design-conscious than before, and we see a trend that the direction that Fractal has been leading for years is growing. These developments reinforce our strategy, and it is proving that Fractal is well-positioned to capture the growing demand for premium, design-driven gaming gear. With that, I'm handing over to Karin to take us through the specifics and the details of the Q2 financials. Thank you, Jonas. Let's take a closer look at our second quarter performance, starting with net sales. In Q2 2025, we achieved the second highest net sales in Fractal's history at constant currency, surpassed only by Q2 2023. Net sales reached SEK 215.4 million, which is an increase of close to 50% compared to the same period last year. Organic net sales growth in U.S. dollars was strong at 66.1%, and sales out through our tracked partners increased by 39.5%. This strong performance was primarily driven by continued robust demand for our core products, our PC cases, which remain the main growth engine for the company. We also saw positive contributions from our expansion into new product categories, the launch of our first gaming headset, Scape, and the Refine Gaming Chair. It's also worth noting that we entered the quarter with low inventory levels in our channels. Throughout Q2, we actively worked to replenish channel inventory, which not only supported our strong sales performance this quarter, but also positions us well for the second half of the year. As we enter Q3, we do so with healthy and normalized inventory levels across our channels, ensuring continued momentum. Another important driver was the ongoing launch of new PC components, particularly graphics cards, which continued into Q2 and further increased consumer demand for upgrades. Sales out remains at a high level, and we have now delivered yet another quarter of strong growth in sales out to end-consumers. This is a clear sign that our products continue to be well received in the market and that underlying demand remains healthy. All these factors contributed to a very strong quarter for Fractal, and we are well positioned to build on our strong performance going forward. Let's walk through our segment and regional performance for Q2, starting with the product categories. Sales of cases amounted to SEK 192.6 million compared to SEK 128.3 million last year, a growth of 50.1% year-over-year. Cases continue to be a strong growth driver supported by the launch of Meshify 3. The other product category, which includes fans, power supply units, water cooling, and not least our new product category, chairs and headsets, contributed SEK 22.8 million, a 47.9% increase year-over-year. Looking at the product mix, cases accounted for 89% of total net sales, slightly up from last year. The other product category represented 11% with continued growth in absolute terms. We expect the other category to expand further as our new product categories gain traction. Now to regional performance. The Americas delivered the strongest year-over-year growth, with net sales increasing by 60.9%. The region's share of total revenue increased to 35.1%, up 2.4 percentage points year-over-year, driven by solid momentum. EMEA remained our largest market, contributing SEK 109 million in net sales, a 43.2% increase year-over-year. EMEA accounted for 50.6% of total revenue, down 2.4 percentage points compared to last year. APAC delivered SEK 30.8 million in net sales, representing a 49.4% growth rate. The region maintained a stable share of 14.3% of total revenue. Let's move on to the product margin. In Q2 2025, product profits amounted to SEK 76.7 million, corresponding to a product margin of 35.6%, compared to 41.4% in the same quarter last year. The decline in margin was mainly driven by external factors. U.S. tariffs reduced the margin by approximately 3.5 percentage points. To mitigate some of the impact of tariffs, we increased prices in the U.S. market starting mid-July. This did not affect the Q2 results, but they are expected to have a positive effect in the coming quarters. We have also continued our strategic relocation project to enable shifting parts of our production out of China, aiming to reduce exposure and risk. Currency fluctuations, primarily related to U.S. dollar exposure, had a negative impact of 3 percentage points, which is an effect of 100% of our sales and manufacturing costs being in U.S. dollars. Freight costs reduced margin by 1.8 percentage points. These costs are split between handling, which is recognized in the month containers arrive in the U.S., and freight, which is recorded when the goods are sold. The high number of shipments during the quarter was partly driven by increased demand, but also by a strategic inventory buildup ahead of the expiration of certain tariff exemptions, which remain uncertain. As a result, more containers were shipped than usual to the Americas. The margin impact was partly balanced by several positive effects. A stronger product mix with higher sales of premium margin cases added 1.3 percentage points. Lower sales discounts contributed 1.2 percentage points. Discount levels are typically lower in Q2 and tend to increase in Q3 and Q4, which may influence margin development in the second half of the year. While the product margin was lower than last year, it demonstrates our ability to manage a challenging external environment. We are advancing several initiatives, including price adjustments and relocating parts of our production that are expected to support margin recovery going forward. EBITDA increased to SEK 19.8 million during the quarter, with a margin of 9.2%, representing a year-over-year improvement of 4.4%. As previously mentioned, the product margin in Q2 was negatively affected by external factors, which put pressure on overall profitability. In addition, operating expenses increased compared to the previous year. First, kickbacks increased in absolute terms, primarily driven by strong sales growth. Second, warehousing and storage costs increased due to elevated inventory levels. To summarize, the EBITDA margin reflects a combination of pressured product margins and higher operating expenses linked to our growth and inventory strategy. Underlying profitability remains solid, although the quarter was impacted by both external and strategic factors. Turning to operating cash flow, we saw a decrease compared to Q2 2024. This was primarily the result of our strategic decision to increase inventory in preparation for anticipated tariff and cost changes. While this inventory buildup had a temporary negative impact on cash flow for the quarter, it was a proactive measure to secure our supply chain and ensure our ability to meet customer demand going forward. As inventory levels normalize, we expect operating cash flow to recover. Our financial position remains very strong, with net cash of SEK 65.7 million, even after paying our first-ever dividend of about SEK 40 million in Q1. This shows that we are able to return value to shareholders while still maintaining the financial flexibility to invest in future growth and innovation. Moving on to the income statement. In Q2, total revenue reached SEK 221 million, representing a strong 50% increase year-over-year. This growth was driven by continued high demand and successful product launches. Goods for resale were negatively impacted by higher tariffs, currency effects, and freight costs. However, this was partly offset by improved margins within cases, which contributed positively to the overall product margin. Operating expenses increased mainly due to higher kickback costs related to our strong sales growth, but also costs related to maintaining higher inventory levels as we proactively built up stock to secure our supply chain. Personnel expenses increased as a result of strategic hires and annual salary adjustments, supporting our long-term growth ambitions. Net financials were negatively impacted by the U.S. dollar SEK exchange rate, but our interest expenses remained low as we maintained a strong net cash position and did not utilize our credit facility. Despite these effects on margins and costs, our underlying profitability and financial position remain solid. This gives us the flexibility to continue investing in future growth and to deliver value to our shareholders. With that, I hand over to Jonas again. Thank you, Karin. As we now wrap up the Q2 report, we are proud to conclude that we continue our strong momentum with another standout quarter. It is the second strongest organic sales in our history, and with a growth of 66% year-over-year. Net sales in SEK grew by 50%, and sales out from tracked partners increased by 40%. This growth was driven by increased consumer demand and strong results from our strategic initiatives, in combination with successful efforts to replenish low inventory levels from Q1, ensuring we could meet rising demand across all regions. Our EBITDA margin landed at 9.2% and our product margin at 35.6%, both impacted by external headwinds, including freight costs, tariffs, and currency fluctuations. We believe that we can gain back margin during the coming quarters as our mitigating actions take effect. On the product side, the Refine Gaming Chair, along with the launches of Scape and Meshify 3, played a major role in expanding our brand footprint and strengthening our position in the global gaming market. Financially, we remain in a strong cash position, which enables us to continue investing in strategic initiatives and long-term growth. While we do see continued uncertainty in the global business environment, particularly around the U.S. tariffs, we are actively managing these risks through pricing strategies and supply chain adjustments. Looking ahead, we are confident in our ability to drive profitable growth through innovation, design leadership, and international expansion. Our updated financial targets towards 2030 reflect this ambition, and we remain committed to creating long-term value for our customers, partners, and shareholders. With that, we conclude the presentation today and are moving over to the Q&A. Thank you. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Jacob Benon from Redeye. Please go ahead. Yes, hi, Jonas and Karin, and thanks for taking my questions. Of course. I would like to start with a question about sales in the other category. In U.S. dollars, sales in the other category seem to be down by some 20% if you look quarter-over-quarter. It seems like an organic decline here despite the release of Scape during the quarter as well. Firstly, is this development according to your expectations? Secondly, can you explain a bit more about the dynamics here, like what is happening under the hood if we look on a quarter-over-quarter basis? That is a result of multiple factors. First of all, if we remember, we did a quite big push in Q1 to sell out all the inventory when it comes to water cooling and power supply units and others. That then is also under other categories. That same level of sales was then not repeated in Q2. There you have a significant portion of the difference coming just by that point. Scape then is also launched quite late in the quarter. Even though it had a big impact, especially in the absolute last part of Q2, it's not sort of a full quarter effect for that product either. Finally, we had a fairly good sales in of Refine in the beginning of the year, allowing us to have a quite stable and good sales development out of that product through both Q1 and now Q2. It's a combination of factors that is playing in, and it's not something that is surprising us, but especially the drop in sales of the old categories, which is definitely planned. That's the big reason. Thank you. Did you say also that there were maybe some channel inventory-related effects when it comes to Refine that impacted the net sales of shares in Q2 compared to Q1? Not dramatically or so, but I mean, we had the situation all through the end of last year, as we recall, with the Refine being out of stock. We had a channel fill-up in the beginning of the year of that product that we had not had to repeat here in Q2. From that point of view. Okay, thank you very much. Is it possible to talk a little bit about sales dynamics and how your sales from a new category develop after launch? For example, first you produce and sell launch quantities for a selected number of resellers, and you do a lot of marketing activities that drive demand at launch. After that, is it expected to see kind of a slight drop-off in demand for a couple of quarters before sales pick up again? How should you think about it in general terms? Without going too much into details of that, of course, we have always a launch surge coming when launching a product. Sales can slightly go down a bit before it gradually increases again with the long-term demand coming into effect. There are these dynamics, and we talked about that before with Refine, I think, in these calls. Of course, it's similar when we're seeing other products. The interest of products at launch is, of course, driving immediate interest, especially when it comes to the selling effect, which is both to have that stock available in the channel, but also then for the coming weeks and months before we have inventory replenishment coming in. Sales out and sales in dynamics are slightly different. Okay, perfect. Thank you. I have to ask a little bit about the Scape as well. To me, it seems like a huge success when you look at reviews and also sales data from resellers. Can you give us some more color on the reception so far? Was this in line with your already high expectations or? We are very satisfied and happy with the reception of Scape. We were hoping for this. We've seen indications of that previously when it comes to reactions all since COMPUTEX last year. Now that the product is hitting the market and we're seeing the end-consumers and the reviews coming in, you know, in line with those early on, that early on hope is fantastic to see. We are super satisfied with Scape. It's been a great launch. How we want to enter a category, just as we did with Refine, is coming in, reshaping how a gaming headset is seen and what it should be. Yeah, proving that the mix of design and functionality that we bring to the table is something different. We're really happy with that. Yeah, that seems very encouraging. What is the plan with Scape for the remainder of your... Is it possible to talk a bit about that? Like, what is the next phase and steps in growing sales from Scape? Now, we do see with Scape, just as early on with the Refine, that we are selling out in many channels and that we need to work on replenishing and getting new stock into the market. That's number one priority in getting the quantities that we need in. We're still in the early stages, meaning that we're focusing on the launch partners. We know, just as with Refine and other parties, that we can broaden our channel network with a product like this. We have opportunities to look much broader than where we are today. That's later on. Second half 2025 and early 2026, we should see that coming. Okay, perfect. If we look at the other category as a whole, I think gross margin in the quarter amounted to 29%. Correct me if I'm wrong here, but I think you have previously stated that the new product categories, which I believe is starting to make up the bulk of the other category, will have product margins that are roughly in line with the overall group. What work needs to be done to increase the product margin here towards the group average? Karin, you want to start or should I? Yeah, what I can say is that, yes, Jacob, you're right. We are having slightly lower margins on our new product categories. We are, of course, continuously working to improve profitability across the portfolio. The average margin of our business is the most important. Of course, we want to grow the margins on our new product categories. I think we talked about this before when it comes to new product categories. In this case, Scape and Refine, there are a lot to do regarding margins going forward. These are new products, first time we sell them. There will be a possibility to negotiate with suppliers, find better ways to do things, et cetera, et cetera. Value engineering, more or less. Okay, I see. How long after launch of a new product category like this do you expect it to take before a category is generating your desired margin? Is it maybe a year, two years, or is it even a longer work than that? No, it's very hard to say. I can't comment on that, but that's the continuous work we're doing. I mean, our main focus is profitability and right now increasing our margins. It's definitely on the table. Okay, I understand. My final question is regarding APAC. I believe on the Capital Markets Day, you noted that you see APAC as a strong growth region for Fractal. How is your work ongoing to get a stronger foothold here, and what initiatives are you taking in the region specifically? We are doing quite a lot when it comes to our presence in the APAC market, just as, of course, with other regions. It should be stated that it's also a long-term ambition to grow APAC and not something that you would see an immediate effect of. We have different setups in the different markets down there, ensuring that we have the right relations with our partners and both existing and especially new ones in certain markets. Even the actions that we're already taking are having effect. We're seeing our market shares and our position grow in the key markets in the regions already. The APAC region is definitely a long-term growth engine for Fractal, even though you might not see it already in a quarter like this, just as AMEA and Namur are seeing these extremely strong growth rates. Perfect. That was all for me. Thank you very much for the answers. Thanks for all the questions. Thank you. The next question comes from Simon Granath from ABG. Please go ahead. Hi, Jonas and Karin, and thank you for the presentation and congrats on the strong results. I'd like to start on the gross margin outlook going into H2. Could you talk about some of the takes and puts for the coming quarters versus Q2? Thank you. Yes, when it comes to margins, we have talked about that a lot. We had a Q2 that was negatively affected by external factors. Tariffs and currency together were 6.5%. What we are doing to improve this and how we are looking at margins ahead, as I said previously, we have implemented price increases in the U.S. market starting mid-July, and they are expected to give us positive effects in the coming quarters. We are continuing with our strategic relocation project to move some parts of our production out of China, and this project is progressing well. That will also give effect on the margin. Of course, when it comes to gross margin, we are having ongoing negotiations with both existing and new suppliers to secure that we have the optimal pricing and value. What we have done now in 2025 to further reduce tariff exposure is that we have built up tariff stock in our regional U.S. warehouse during the spring, which will help us during fall. That is when it comes to tariffs, how we will handle that and improve margin. When it comes to product mix, as I said before, we saw that cases were the strongest category, of course. We can say that we expect cases to remain our core category and represent approximately 85% of sales for the remainder of the year. It will be our core product. Of course, our new category will take place as well and grow in absolute terms. We expect the margin to improve over time, but we have had an extremely tough time when it comes to external factors this quarter. very much indeed. Thank you for a very colorful answer. I'd like to continue with one more question on the price increases. Could you describe in rough terms what magnitudes we are talking about? Some market players have talked about some 10% increases in rough terms. Is that a reasonable level to expect? Another question is on the move of U.S.-related sales to other markets than China. Are there any costs associated with that that we should be aware of? Thank you. Could you repeat the second question, Simon? Should there be any extraordinary costs relating to the move of production to other facilities than China? Yeah. Okay, so first on the price increase, yeah, I mean, that's open. You can check where our prices are up approximately 10% in the U.S. market since July 15. For the end-consumer side, we're working on our relations with the channels, of course, to make sure that we can get as much as possible to recover our margins. Of course, it's one of the effects to mitigate the tariffs or one of the actions, not all. It's an important aspect for Fractal as well to maintain the value for the consumers and to our community. It's a constant work understanding where we are, what kind of tariffs we are facing or will be facing. Also, as Karin Ingemarson has mentioned before, when it comes to the increased inventory levels, especially in the U.S., it has allowed us a bit of stability now, knowing where we will be for a couple of months at least when it comes to our inventory costs and cost for our products. So 10% up approximately today. On the out-of-China sort of production initiatives, is it associated with any particular costs that will be material in that sense? We are doing these kinds of activities all the time. As we talked about during our Capital Markets Day, we have a very broad network of suppliers today. Moving production, switching factories if that's needed, and so on is something that we do regularly. It's not something that is out of the ordinary for us. Of course, setting it up in a new location is one new thing, but not so much for us, but more for the partner that we're doing it with. That is not material in that sense. Crystal clear. Thank you. I do appreciate that this might be a hard question to answer, but demand for your cases has naturally seen a tailwind from recent GPU launches and the subsequent PC upgrades. Historically, however, there has been cyclicality in the demand uplift from such events. I'm curious on where sort of on the demand curve we currently are. Are we in the middle stage or closer to the upper limit, considering the currently robust performance that not only you are reporting, but also competitors of yours? Yeah, it seems to be reporting better numbers. As we talked about before, we believe the upgrade cycle this time is longer than before. This has already sort of been proven. It was a steeper sort of increase previously when new components have been launched. This time, it has been a gradual increase over the year with quite stable demand. Our sales outlook is really good in that sense and throughout the quarter, showing a positive trend for the fall as well. We need to look at the other macroeconomic factors playing in and if that will impact anything on the demand side. We believe that it's a longer cycle that will last through 2025 into 2026 at least. Perfect. Appreciate that. A following question from me. Looking at the positive reception of Scape and putting that into context of the fact that you are gradually expanding into new product categories, I'm curious to the sort of timing on when we might see further expansion into additional areas. No need to be specific on this, but it would be interesting to hear if you have already started such initiatives. Fractal's long-term plan here, as we've talked during Capital Markets Days and others as well, is clear. We are expanding our portfolio to cater to the gaming station and deliver a better gaming station to our community. That does include also potential new products. Investigation is ongoing, so to say. Of course, we know where we're heading, but we can't really go into details on when that will be. Now we just released Scape, meaning the second year in a row coming up with a new quarter, and we'll see how the trend will continue. Fair enough. Thanks for having my questions. No problem at all. Thank you. There are no more callers at this time, so I hand the conference back to the speakers for any written questions and closing comments. Yes, we have had a lot of comments regarding the other category. Most of those questions have already been answered, so I will not go into them now. One here is, do you plan to enter additional product segments? If yes, can you give any hints about which ones? Similar to the last question there from Simon, we can't go into detail on what kind of product categories we are looking at. Of course, it will be somewhere where we can use the strength of Fractal, which is the combination of our design and functionality performance thinking, somewhere where our Scandinavian design tech, Scandinavian gaming tech will flourish and deliver something new to the consumers. A way to impact the gaming station. Is it correctly understood that the currency effect on gross margin is mainly caused by timing and should disappear if the U.S. dollar is stable going forward and even turn positive if the U.S. dollar appreciates again? Yes, I would say that is correct. The currency effect on gross margin is primarily related to timing differences between when we purchase inventory and when we recognize revenue, as well as the impact of other things, but mainly these two. If the U.S. dollar remains stable, we expect this effect to largely disappear over time. Should the U.S. dollar strengthen again, the impact would be positive for our gross margin. After the spike in freight rates in Q2, current freight rates from China to the U.S. are down more than 50% compared to last year. Is it fair to expect this to reflect positively in your freight cost in Q3, or are timing effects, fixed rates, or similar pushing the positive effect further into the future? Yes, it's correct that the freight prices have gone down. We have seen freight prices in Q1 around or above SEK 4,000 per container. In April, May, and June, they were around SEK 2,000 -SEK 3,000. That will definitely give an effect. As I also said previously, when it comes to freight cost in Q2, we have had a lot of handling costs in the quarter. We have had a lot of containers coming in due to the stock building in the American warehouse, which will probably not affect the freight cost going forward in the same way. We expect the freight cost to go down going forward, yes. Other external expenses amounted to SEK 35 million, up by SEK 5 million year-over-year. Is there anything specific driving other external costs, and should we expect this level to persist during H2? Yes, it's correct that our OpEx has increased by approximately SEK 5 million year-over-year, and the main driver is higher kickbacks resulting from stronger sales. In addition, as I've talked about a little bit, is the warehousing cost. It has been higher due to inventory buildup in the American warehouse. What we can say is that kickbacks are what it is when it comes to, because it's connected to sales, but when it comes to warehouse costs, we expect these elevated inventory-related costs to persist a little bit over the coming quarters, but will go down when inventory goes down. Good morning to Karin. It sounded like the additional freight costs affecting gross margin have been for warehouse buildup in the U.S. Does it mean that products that will be sold in H2 already have had their freight costs now in Q2, higher gross margins in H2? Does it mean that products that will be sold in H2 already have had their freight costs now? Yes, to some extent. I mean, normally when it comes to freight costs, the actual freight cost, it comes when we sell or recognize revenue. When it comes to handling costs for all these containers coming in, that cost takes directly. It's both. Yes, some of it has already been taken in Q2. That was it. That was all the questions. Very good. We thank you all for questions and interest today, and look forward to meeting and talking to you all soon again. Thank you.