Ladies and gentlemen, welcome to the GARO Interim Report January-September 2023 conference call. I would like to remind you that all participants will be listen-only mode, and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for question at any time by pressing star one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Mr. Patrik Andersson, CEO. Please go ahead. Thank you, and welcome everyone to the presentation of GARO's report for quarter 3 2023. My name is Patrik Andersson, and I'm the CEO of GARO Group. With me today, I have Helena Claesson, our CFO, to present the financial performance. Next slide, please. Let's start with an introduction. GARO is a company founded in 1939 that develops, manufactures, and sells innovative products and systems for electrical installation under own brand in the European markets. Developing products that are at the forefront has always been a significant aspect of our success. Our focus is on developing user-friendliness and safe products with a modern design and long service life. There is market demand for products and solutions to assist the establishment of a fossil-free society, in which growing number of people are becoming conscious of the environmental impact. This makes the sustainability aspect a crucial factor in the choice of product and service. Next slide, please. We have two business areas, GARO E-mobility, which consists of the E-mobility product area, and the GARO Electrification, which includes the electrical distribution products, project business, and temporary power. We have operations in Sweden, Norway, Ireland, Finland, Poland, U.K., and Germany, and we also sell into European countries where we don't have own subsidiaries. We have production facilities in Gnosjö and Hillerstorp in Sweden, where we relocated during the first quarter this year, and in Szczecin in Poland, where we moved into new production and logistics facilities during this summer to meet the demand for E-mobility products in the coming years. We are approximately 500 employees in the group. Next slide, please. In the E-mobility product area, we develop and market all types of chargers for rechargeable vehicles. We have product and turnkey solutions for destination charging for various locations, including at home, in public, at working places, and along the highway. To make the E-mobility business even more complete, we also offer service agreement to assist our customers with annual service, updates, et cetera. We believe it's important to make it easy for the user and to make it possible to charge in location where people live and work. This area accounted for 32% of the total sales in the quarter. Next slide, please. The largest product area in the GARO Electrification business is electrical distribution products, which consist of approximately 3,500 product and turnkey solutions for the electrical installation markets. Examples of products are components, safety switches, meter cabinets, outlet boxes, plugs and sockets, which are products used daily in different applications, such as new buildings, renovation, marina, camping sites, industry, and E-mobility solutions. This product area contributed 42% of the group sales in the quarter. Our project business provides complete and customized solutions for all types of power supply for apartment, single homes, industry, and E-mobility solutions, and accounted for 22% of the total sales. The temporary power product area, which has product portfolio consisting of temporary electricity, lighting, heating, and charging, as well as products used on construction sites and events, accounted for 4%. These four product areas make GARO's offer unique and easy for the customer. An example of this is when the customer requires a charging solutions with different chargers for E-mobility, and also requires power supply from projects, as well as safety and installation product from electrical distribution products. This make it easy and simple for the customer and end users. Now over to Helena for some financial updates. Next slide, please. Thank you, Patrik. I would like to start by looking at the financial summary for the third quarter. Net sales amounted to SEK 304 million, a decrease of 4% compared to the same quarter last year. Sales within GARO Electrification decreased by 7% as a result of a weaker economy in the market in general, while GARO E-mobility recorded a modest increase in sales of 3%. Operating profit for the quarter came in at SEK 5 million, compared to SEK 37 million for the same quarter last year. This gives us an operating margin for the quarter of 1.7%. The lower operating profit is explained by lower sales, combined with a low gross margin, where a weak Swedish krona against the euro has continued to negatively impact our material purchases. This, together with an organization built for growth, results in the lower operating profit. GARO always try to adjust price towards customers correspondingly, even though this might happen with a delay in time. The ongoing change of the sales organization in Norway resulted in additionally non-recurring costs of SEK 3 million in the quarter, now amounting to SEK 5 million for the period January to September. Our new production and logistics facility in Poland is completed, and we have relocated production to the new place. For the quarter, this has resulted in certain non-recurring costs as well as initially lower productivity. Material flows have been fine-tuned, and volumes in production have gradually increased during the quarter. The process to sell off the old property has begun, where the market value for this property is estimated for SEK 45 million. Now over to you, Patrik, for some operational highlights. Next slide, please. Thank you, Helena, and we go further on with operational highlights, and let's start with GARO E-mobility. The delivery start of GARO Entity Compact signaled the completion of the development project of the new platform for destination charging. However, in order to meet the market expectation, continuing maintenance and the development of future functionality will be required, which is why GARO will have conscious development expenditure moving forward. In the market for home charging, which is currently price sensitive, high sales of volume in a broader market are required to achieve economies of scale and improved profitability. This is especially the case for GARO with our product program in large parts direct to the premium segments. During the quarter, GARO Entity Pro was third-party certified according to the international charging standard of TÜV SÜD in Germany. This ensures that the product is quality assured and that it adheres to the current directives, laws, and standards in accordance with the stringent testing carried out during product development. In July, GARO signed a framework agreement with E.ON Drive Infrastructure. The agreement covers the sales of product in public charging for countries in Europe and runs until 2027, with the option of an extension. E.ON's choice of GARO as a supplier confirms that products maintain a high level of quality and safety, that we have good delivery capacity and have established operations with support and aftermarket. Several of GARO's charging stations for public charging were approved in accordance with the Eichrecht regulation and are now available for sale in public charging in Germany. This represents a milestone for GARO since the German market requires public charging stations to comply with the Eichrecht regulations. Lars Frieg was recruited as COO of our new established market company in Germany. Lars' most recent position was at Elli, part of Volkswagen Group, which is a supplier of energy charging infrastructure solutions. GARO Electrification. Not surprisingly, demand for products related to the new construction of single homes and apartments is down sharply, particularly in the Nordic region. Forecast shows that it will continue to impact the rate of production of housing for years ahead. Continued demand has been noted for new construction in the commercial and industrial sector in parallel with need for renovation and increased energy efficiency in properties. This market continues to energy efficiency, and green transition is assessed to be stable. However, these volumes do not fully compensate the lower volumes in new construction. The project business, which is late in the construction cycle, continues to show good sales with a growth of 3% compared with the year-earlier quarter. GARO is seeing a continuing healthy demand with a high delivery capacity, combined with large and more complex projects, and they have a load that benefits the company. However, the decline in new construction in general will impact the sales in the product area moving forward... With our two business areas that complement one another, we are meeting an increasing demand for complete solutions for large charging installations and even for more complex projects from power supply to connected charging stations. During the quarter, sales commenced in Sweden and Finland of new car heater, the GARO Entity Heat, which is built from the same platform as the wallbox GARO Entity. Deliveries to customers commenced during the end of the quarter and are expected to lead to positive synergies effects between business area with their simply expandable concepts. We go further on with growth and profitability. In September, an action and efficiency program was launched, primarily in GARO Electrification, leading to approximately 45 redundancies in the group. In addition, all temporary positions were also terminated. The efficiency program is expected to cut personnel expenses by SEK 30 million, and also includes several measures to strengthen the gross margin. In addition, we have continued to focus considerable on cost control. The next price adjustment window will take place in the first quarter, 2024, when we will implement additional price increases in all of our markets. The supply of components is currently healthy and predictable in both business area, which means that we have essentially returned to delivery times in line with our internal objectives. Prices for the majority of the raw material have stabilized. Production in Poland was relocated in July to the new production and logistics facility, which is crucial to have the capacity to meet the demand on the European market for a long-term expansion. This has led to some non-recurring relocation costs and lower initial productivity. Material flows were then fine-tuned and production volume gradually ramped up. The divestment of the old facility has begun and is expected to be completed in the fourth quarter. The building is assessed to have a market value of SEK 45 million. We believe that GARO E-mobility will post a strong growth in the fourth quarter, both sequentially and year-on-year, while GARO Electrification is expected to grow sequentially but report negative year-on-year growth. Overall, the group net sales for the first quarter are expected to be in line with the last year. And now over to Helena for financial performance. Next slide, please. Yes, and I will now continue with the two business areas separately, starting with GARO E-mobility. Net sales amounted to SEK 94 million in the quarter, giving us a modest growth of 3% compared to last year's, as said before. The restrained growth in the business was partly due to delayed starts of the delivery of GARO Entity Compact, where deliveries now have commenced in October. Also, some of our major contract customers have had high volumes of GARO's products in their inventory since summer. This is a result of our previous delivery problems and low lead times from GARO, forcing our customers to ensure their delivery capacity to end customers. We believe that these inventory effects will essentially lessen at the end of the fourth quarter. Sales in Sweden were lower compared with the same quarter in 2022, while we saw good growth for both the Nordics and the other markets in Europe. In parallel, we are also noticing a doubling of sales within DC charging, even if it is from low volumes. The demand for public charging is the main factor driving growth in the business area, and GARO sales to contract customers are increasing steadily, and they are becoming a bigger part of our year-on-year of total sales. EBIT amounted to -SEK 15 million, where low sales, a weak gross margin, and an organization for built for growth explains the negative operating results. In addition, during the quarter, GARO has started campaign activities for the charging box, GLB, built on the previous platform, where sales takes place at significantly lower volumes. Sorry, margins. Next slide, please. And now we will focus on GARO Electrification business area. Net sales declined with 7% and amounted to SEK 210 million, compared to SEK 225 million in the same quarter last year. The demand for products related to house manufacturers, new construction, was down sharply as a result of a weaker economy with rising interest rates. In general, the market has slowed down, it is our opinion that the market now is more cautious, with a reduced number of project starts for new housing in Sweden and also for the rest of the Nordic region. At the same time, we notice continued demand for new construction in the public sector, commercial properties, and for the industry. Also, there is the healthy demand for products related to renovation and energy efficiency of buildings. The market connected to the green transition is also considered to be favorable, which is driving sales in certain product groups. EBIT amounted to SEK 20 million, compared to SEK 37 million in the same quarter last year, giving us an EBIT margin of 9.8%, down from 16.5% in the same quarter last year. The lower EBIT in the quarter is the result of lower sales, combined with some product inefficiency and higher purchase prices. The change of the sales organization in Norway that began in the second quarter has led to additional non-recurring costs of SEK 3 million in the quarter and now amounts to SEK 5 million for the period of January to September. Next slide, please. Now, looking into cash flow and balance sheet. The cash flow from operating activities amounted to SEK 41 million in the quarter, compared to SEK 32 million in the same quarter last year. This is mainly explained by lower results in combination with changes within customer receivables and payables. Working capital tied up in component inventories remains high. We have invested SEK 14 million in the quarter, of which six were related to product development. The total investment for our new facility in Poland amounts to SEK 100 million. As Patrik mentioned before, we have started the process of selling off the old property with a carrying amount of SEK 28 million, corresponding borrowing of SEK 11 million. The facility is assessed to have a market value of SEK 45 million. Our net debt position amounts to SEK 293 million, compared with SEK 45 million in September last year, where GARO is utilizing a large part of its credit facilities right now. Our net debt position, excluding the effects of IFRS 16, that is lease contracts, amounted to SEK 220 million, compared to SEK 8 million in the preceding year. During the quarter, the first dividend payment of SEK 20 million was distributed to the shareholders. The second and the remaining payment of another SEK 20 million will be paid now in November. We have an equity asset ratio of 49.4%, and available liquidity, including overdraft facilities, of SEK 108 million. Now back to you, Patrik. Next slide, please. Thank you, Helena, and we'll go further on with GARO's outlook. In Sweden and the rest of the Nordic region, the construction of housing has declined, and new production of single-family homes and apartments is expected to be weak for several quarters moving forward. Demand for the commercial and public construction, combined with the renovation requirements and energy efficiency, remains favorable. As Helena previously mentioned, demand for charging stations for larger projects and commercial properties, public places, and tenant owners association is high and is currently main growth driver in the GARO E-mobility business area. The current market situation with high interest rates means that the many households are postponing their investments, which affecting the sales of home chargers to private individuals, primarily in Sweden. We believe that GARO E-mobility will post strong growth in the fourth quarter, both sequentially and year-over-year, while GARO Electrification is expected to grow sequentially, but report negative year-over-year growth. Overall, the group net sales for the fourth quarter are expected to be in line with last year. All in all, we have a positive long-term view on the market condition and the investment we have done, mainly driven by growth in charging infrastructure and its requirements for power supply. Next slide, please. Thank you for listening, everyone, and me and Helena is ready for questions. We will now begin the question and answer session. Anyone wish to ask a question may press star and one on their touchtone telephone. You will hear a tone to confirm that you have entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use only handsets while asking a question. Anyone who has a question may press star and one at this time. The first question is from Johan Skoglund with DNB. Please go ahead. Good morning, Patrik. Good morning, Helena. This is J ohan from DNB. I have a few questions. So for my first one is related to Germany and E-mobility. Could you give us some more color how the push is coming along there following the new certification? And if you have any more color on the E.ON program, how big that would be in terms of volumes? If we start with the Germany, as we mentioned, we have established the sales company. We have on board our CEO, which is an introduction as we speak, and we also signed a sales guy. So we will start the sales in Germany from that sales company in first of January. Of course, we are already doing sales to Germany, but not through the company at this stage, and that's through retailers and the customers handling from Sweden. When it come to E.ON, we have, of course, estimated volumes, but no volumes that we can mention, and they're not, we don't know exactly how big the volumes will be. We have some estimation in the contract, so I have nothing there to mention at this stage. Okay, okay, understood. And you mentioned- Yeah. Okay. Yes, yes. Okay. So, you also mentioned a cost control program, which you press released here a few months ago, and you also measures to strengthen gross margins. I mean, outside of the personnel expense cut, could you give us some examples of any measures being taken and how large effects you would expect them to provide? We have done a lot of things. Of course, we have the cost control, but we also are working a lot with our suppliers to decrease the prices of components and raw material and that things. We also increase the prices in the market, and of course, production efficiency. That is the most part to increase the gross profits. I don't know, Helena, if you have any numbers to mention there. No, we do not communicate any numbers regarding the strengthening of the gross margin, not yet, at least. There is a work ongoing. But we have the personal cost will be approximately around SEK 30 million, Helena. Yes, for the people who will have to leave their position and also for the, in combination with the ones on, so to say, temporary employments and consultants. Yes, that's correct. Okay, understood. Thank you. And then you made a number of updates to GARO Entity. What were the main reasons for this? Do you believe it was difficult to install? Did it lack some functionality, or were there any other factors that affected this? Sorry, I missed the beginning there, Johan. Yeah. Take the question again, please. Sorry. Yes. So you made a number of updates to GARO Entity, and just curious about the main reasons for this. Difficult to install, did it lack any functionality, did the customers have any say or any other reasons that I can't think of right now? Of course, when we implement a totally new technical platform, you often, in the beginning, make some quick updates. You get some support from the market. You put on some functionality, and of course, you have always some things in the beginning you have to adjust quite quickly. So, that was due to the plan, can you say? So, no big hiccups in that place. We will continue to make these short updates all the time, and that could be also from an installation point of view. This can be from an end user point of view. It can be from an installation point of view. So, the updates will come for the future also, so to say. Okay, got it. So no major hiccups, then that, that sounds good. No. What can you tell us about price hikes? You mentioned price hikes in all markets to come. Does this also mean both business areas? Yes, it means both business area. Of course, it depends from which product. Some of the products we can increase more and some less. But yes, we will increase the prices in both business area in and in all countries. Okay, good. So finally, I just have a couple of questions on cash, which was quite okay in this quarter. So can we also expect continued working capital release in coming quarters from accounts receivables, payables? You mentioned a high inventory, et cetera. I would say yes. We are working, and the cash release will come from mainly the high inventory value, I would say. Okay, good. Do you have any further CapEx plans now, or are most of them in the rearview mirror? Not as big as the one investment we now just finalized in Poland. Mm. But then, on the other hand, as we try to explain in the report, there will always be, so to say, CapEx invested in the R&D and functionalities of GARO Entity and other products going forward, but not to the same volumes or the high amounts as of now. Okay, very good. Thank you for your questions. That was all from me, and I appreciate your answers, and good luck with the Q4. Thank you. Thank you. As a reminder, if you wish to re-register for question, please press star one on your telephone. The next question is from Anton Lund with Kepler Cheuvreux. Please go ahead. Good morning, all. Thank you for taking my question. I'm just wondering a little bit about your exposure to residential construction in the Nordics. Can you please provide any color on that? You mean in a percentage, you mean? Yes. Yeah. Oh, I don't have the exact percentage, but of course, we have a volume to this type of production. But as we have seen in this type of market situation we have been in before, our product range, so to say, when it comes to enclosures and the components, we can switch it quite quickly to, so as we mentioned, in renovation and energy efficiency, and now also the expansion in the E-mobility. But of course, we will see a decline in this area, but I don't have an exact percentage number in this. But of course, we will see some decline in this area, as we mentioned in the report. That's correct. Okay. Thank you. And then one more question. Competitors of yours have similar agreements with E.ON. I heard you say that you can't really provide any type of volumes there, but how meaningful do you think this agreement could be to you? Of course, we have had long-term relationship with E.ON, and now we have signed this agreement with E.ON Drive, which is an E.ON company. That is really important, as we say in several teams, because they are a very really skilled utility and company, which means that we can have a good development together. And it's also really important because they will build a lot of infrastructure in Europe. They will be a leader of that. So of course, it's really important for GARO to have this agreement, even if we are not have, it's not exclusive for GARO, but it's really important to be one of these agreements. Okay. That was all for me. Thank you. Thank you. Once again, to ask a question, please press star one on your telephone. Ladies and gentlemen, that was the last question. I would now like to turn the conference back to Patrik Andersson, CEO, for any closing remarks. So, me and Helena, thank you everyone for listening, and wish you a good day. Thank you.