Hello, and welcome to the Jetpak Top Holding first quarter 2023 earnings call. Your host for today's conference will be Kenneth Marx, CEO of Jetpak Top Holding, and Håkan Mattisson, CFO of Jetpak Top Holding. My name is Laura, and I will be your coordinator for today's event. Please note that your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero, and you will be connected to an operator. I now turn the call over to Kenneth Marx, CEO of Jetpak Top Holding, to begin today's conference. Thank you. Yes, good morning, and welcome to this Q1 presentation in Jetpak Top Holding. As mentioned, the presentation will be made by Håkan Mattisson, our CFO, and Kenneth Marx, myself, CEO of the company. We will take you through the standard agenda, which has also been used during the other presentations, which will be the business highlights, first of all, then going through the financial highlights, expectations for the coming quarters, and then finalized by a Q&A session. Digging directly into the business highlight, the first quarter of the year was represented by a weakening growth compared with the same quarter last year. We achieved a growth of 2.9% organically, and that was compared with 10.2% last year, and that was impacting both segments. The operating result was also, like, on a lower level, with a margin of 9.88%, excluding the provision for the long-term incentive program, and amounting to SEK 30.7 million. The largest growth decrease was actually in the air segment, which decreased from 37% growth same quarter last year to 6.4%. Also margin was this segment negatively impacted by increased lower margin business from EU, which also has been like something that we have discussed at the previous quarterly presentations. On one hand, positive with the growth, on the other hand, I mean, it is lower margin business that we have from some of these big accounts in Europe. Air capacity was remain a challenge also during the quarter. Even though, like, the number of flights were picking up, we still see some other restrictions coming up operationally, which is due to very much due to this SAS Chapter 11 process. As you know, SAS is still the main supplier of belly-hold capacity to Jetpak Group. That is somehow challenging, but the good thing is, of course, that we are working also with backup solutions, and we are, like, providing a continued decent high-quality product. We saw a certain trade down in both Norway and in Finland on the air segment, which was partly due to less COVID-19 related business and also due to an increasing cost focus among our customers. Europe has a continuous strong growth, but as I said, they were, like, driving the lower segment margin. What we also have seen in the air segment is that there is an increased revenue volatility. It has been a high volatility month to month, which continues, and it is underlined that we are facing more challenging conditions. The road segment, they achieved a modest growth of 3.4%, which was half of the growth that we had same quarter last year, actually 6.4%. That was very much driven by the Swedish business to consumer accounts, as well as business to business accounts, and also the fact that we introduced the fuel and the sustainability surcharge. Finland was also a good growth contributor on the road segment due to the delayed luggage distribution. We were still seeing some down trading in Denmark due to the loss on larger account and also down trading on larger account. We continued to see a consolidation on some of the large road customers in Sweden. Good revenue development on these accounts. The segment margin increased slightly despite the fact that we saw an increase in cost focus from the customers, but that was due to a favorable mix development. Furthermore, during the quarter, sustainability progress remained a high priority, and we believe that both with the drones and electrical vehicles and development that we see within these areas, that cost benefits will be within reach within a foreseeable future. We have ramped up on the M&A activities. We want to take advantage of the current situation in the market, and also to see if there are good opportunities with a specific fit to the Jetpak business. As we also have mentioned before, we see that valuation should start to be at an interesting level due to the current situation in the market. We have also initiated a supplier cost efficiency program, so we are capable to mitigate any potential downturn during the coming months. That was the essence of the business highlights, and with that, I will let you work through Håkan, taking us through the financial highlights. Thank you, Kenneth. I will take you through and try to put some financial color to the financial highlights from Jetpak's first quarter 2023 interim report. As Kenneth mentioned, the consolidated total revenue for the quarter amounted to SEK 313.1 million. This represented a total revenue growth of 4.7%, equal to an increase in absolute figures by SEK 14 million, compared with the same quarter last year. Looking further into the organic growth for the quarter, that amounted to 2.9%. As you know, during this quarter, the figures had no acquired growth effect. Net wise, Jetpak continued to benefit from an FX tailwind, which amounted to SEK 5.5 million. That tailwind came from both a strengthened Euro and the Danish kroner, with the Norwegian kroner this quarter, partly offsetting this tailwind as it decreased during the quarter. Again, compared to the same quarter last year and versus Jetpak's reporting currency in Swedish kroner. I often mention that it's however, worthwhile noticing that the individual Jetpak countries, may it be Sweden, Norway, Finland, Denmark, all those countries have a high degree of natural currency hedging, since most of each Jetpak country's revenue is matched by operating costs in the same currency. Looking further into the segments, Express Air, the net revenue growth within that segment amounted to 6.4. We also here had some FX tailwind, of course. The underlying organic growth for the Express Air segment was then close to 2% units lower or 4.5%. Here we saw Jetpak Europe, which consists of our operations in Belgium and in the Netherlands, as the main organic growth contributor within this air segment. These two countries reported a combined revenue of more than SEK 43 million, and that was equal to a revenue increase of SEK 8.8 million from those two countries. Shifting gears into the Express Road segment, they had a reported growth by 3.2%. Actually, exactly 50% of the growth of Express Air. After adjustment for foreign currency effects, the underlying organic growth for the road segment amounted to 1.4%. As Kenneth mentioned, larger Swedish customers contributed to the growth, further supported by Jetpak Finland within Road, in the form of delayed air luggage distribution. The segment's overall growth was then partly offset by 7%, 7.4% drop for the Danish Road business due to some lost customers. This Danish Road segment revenue drop amounted to SEK 3 million in absolute terms. The total consolidated gross margin for the quarter then came in at 30.6%, corresponding to a gross profit of SEK 95.8 million, and that was equal to an increase by SEK 2.4 million between the years. Looking further down into the income statement, to the indirect cost side of the income statement, that is mainly related to personnel cost, which is not allocated to our direct production costs. Those personnel costs amounted to SEK 45.8 million, and that was 4% or SEK 1.8 million higher than last year. This subtotal also included the cost accrual for the 2021-2023 long-term incentive program, which for this quarter were back to what I may say, normal levels and amounted to SEK 2.2 million for the quarter, and that was flat with last year. The second biggest driver of Jetpak's indirect cost is depreciation, and that amounted to SEK 9.9 million or SEK 400,000 more than last year. Out of this subtotal, 75% related to right-of-use depreciations in accordance with IFRS 16 leasing. The remainder being first depreciation of acquired customer relation, amounting to an additional SEK 0.9 million, plus what one might say, the classic or normal depreciation of tangible and intangible fixed assets, including the company's business system, Jena, which then totally amounted to SEK 1.7 million. That takes us to the operating profit for the quarter, which amounted to SEK 30.7 million. The operating margin for the quarter amounted to very, very close to 10%, but 9.8%. The long-term incentive program affected this quarter's operating profit negatively by 0.7 percentage points. Net income, or profit and loss after tax for the period amounted to SEK 24.7 million. Basic earnings per share for the quarter amounted to SEK 2.03, that was the same, that's the same figure as the diluted earnings per share as we have no dilution effect, profit per share. Looking into the cash flow, cash flow from operations amount to minus SEK 2.7 million. That is actually the first time since the outbreak of COVID-19 in Q1 2020, where we had a quarter with a negative operational cash flow. This situation was mainly driven by increased working capital relating to Jetpak Europe, in turn, due to increased accounts receivables and current receivables. We, however, consider this to be a temporary situation, which will be reversed back already during the second quarter, so that Jetpak on a half year basis is back to what we may say, historically normal cash conversion levels. Despite this hit on operational cash flow, the cash position improved and amounted by the end of the quarter to SEK 153 million. That was a liquidity net increase by SEK 26 million between the years. Keeping in mind that Jetpak since last year have amortized the loans and refinanced the group. As such, Jetpak has a net debt position of SEK 64 million, and that is equal to 0.4x the adjusted EBITDA on a rolling twelve-month basis. That actually concludes this quarter's financial highlight walkthrough. Without further ado, I hand the word back to Kenneth for a further comment on the market and overall business trends for the coming quarters of 2023. Yes, thank you, Håkan. It is pretty difficult for the time being to be hopelessly optimistic regarding growth rates, because currently what we see in the market is that we are seeing, like, more customers starting to down trade and to buy more deferred services. We see, like, stock cost programs and so on. What we are seeing is actually, and also which is somehow hitting us, is us, also, what we are seeing from the quarterly reports that we have seen so far from some of the big logistics players, which has been hidden by that already in the first quarter. We see some indications and some sign, and we know that also this increased volatility that we have been meeting during the months, the first three months of the year, is also an indication of that something is happening in the market. Nevertheless, I mean, we are hopeful because we are, compared with many of our competitors, equipped with a very asset-light business model. I think that we are well positioned for any challenges in respect of challenging growth rates. At least it's our expectation that we will see these challenges within the coming two quarters at least, and that hopefully we will, during the last quarter, start to see its growth to reinstate at the level that we would expect. We have also seen that the GDP growth rate remains low, on low level, both in Scandinavia as well as it does in Europe. That is also impacting our business and our competitors' business. We see that we need to be prepared for protecting our profits and to initiate cost efficiency programs internally. That goes both for, you could say, supplier costs, but it also covers, you would say, optimized utilization of our organization and resources internally. We are working currently with the road supplier models because we are calibrating the model both towards the current volumes that we see in the market, but also to ensure, like, increased utilization and cost benefits. It looks promising. We expect to take out further costs on the part of the supplier side. We have also initiated new commercial initiatives. It will not like fully neutralize the impact from the lower growth, but at least it will create new opportunities both within the temperature-controlled transports segment, and also we have started with organic growth and special service segment in Scandinavia, an area which has been very successful in Europe. This initiative has actually also been So high on the agenda in Jetpak, even though we are like on a little bit both using the brake pedal and the speed at the same time, we see like a good opportunity with the M&A processes for the time being. We have acquired Budakuten, as you know. We are currently in a closer dialogue with a number of potential companies, and we hope to be able to say more about that within a few weeks or months. That is yet to be seen. It is basically within the road and courier services in Scandinavia that we are focusing, and also at companies which are like providing special services, niche services, and which are in a high margin segment. In addition, we are also looking at the forwarder air freight special service, the kind of business that they do in Europe, and that can be both in the Nordics as well as in the Benelux area. It looks actually promising, I would say. Our expectations for the coming two quarters will be that we will probably achieve a slightly negative to zero growth. I think that is a fair assessment based on what we are seeing in the marketplace for the time being. We also expect the market to stabilize in Q4, where we also have some new and higher business potential in pipeline, which will support the current situation. Nevertheless, we are maintaining the long-term targets, but as I have said many times before, our main focus is to ensure that our EBITDA is growing in actual numbers and not that much percentage-wise. That was words regarding expectations and focus areas in a challenging market, but I think we are well equipped to meet these challenges in the best possible way. From our side, we remain optimistic in a long-term perspective. Now we are ready to receive any kind of questions that we can answer, you can just shoot. Thank you. As a reminder, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Thank you. We'll take our first question. At the prompt, please state your name and company before posing a question. Your line is open. Please go ahead. Yes, good morning. Good morning. Hello? Yeah. Yes, good morning. It's Anders Roslund here from Pareto. Good morning. I would like to start off with some questions regarding your outlook, and air freight. When you are cautious, this is only sort of macro indications here, or is it still, problems with air freight capacity regarding SAS, if we talk about the Express Air business? I would say it's mainly due to the macroeconomic situation, and also the fact- Mm. -that we see like a downturn from other logistic, big logistic companies in their Q1 reports, so that makes us cautious in that respect. Mm. Looking at the capacity of SAS, you could say in number of frequencies, they are more or less back to the old level, so pre-COVID. Looking at the actual capacity they're providing compared with the, with the last, you could say, normal months before COVID, capacity-wise, they're not up on the same available cargo capacity. Then in addition to that, talking about SAS, I mean, we also see some operational changes which potentially can impact our product and the quality of our services, because they're like having a huge cost focus for the time being. The good thing is actually, Anders, that we have like good alternative suppliers. You know, we still have this close partnership with SAS, and we are like, we are intensifying the dialogue between our companies to ensure we find the best possible solutions for the customers. The main thing about the current situation and the slowing growth rate on the air segment is actually for macroeconomic reasons. Mm. The macroeconomic reason also means that we have customers looking for more deferred services. You know, that we try also to mitigate by having a clever M&A strategy. We are like also in the future, broadening our, you would say, product and service portfolio, also to meet the demand for deferred solutions. Okay. Just continuing on the air freight business again, you have been very successful in the Netherlands and Belgium, and that was very positive last year, and it seems to continue, also in this year. How do you see upon that business? Is this going to be stable or growing or? No, it's always difficult to predict. Sometimes you can be hidden by your own success on next quarters and so on. That's, we're not saying no to business, but we're also getting more dependent on large accounts, you know, and that is always a challenge. What, of course, we see, like in general, and what we also expect to see in Europe is that it's a cost focus. I mean, you know, it will go more and more for lowering their cost, and that could, of course, be to the disadvantage of our service. I'm not like, I'm not optimistic, but I think like in a full year perspective in Europe, we will manage to continue on a good level. Of course, I also see a risk on some of these larger accounts. That, and that means if this risk materialize, then we just need to run, faster in other geographies. That's the way it is. Have been very successful, still is, but it's also like, it could become a challenge, of course. Okay, you are somewhat optimistic about the fourth quarter. Is that any particular reason you talk about the business potential there? I assume it's not the macro climate you're talking about. I assume that it must be. I think none of us know when we will see the ramp up. Talking with colleagues in the industry and so on, we're all hopeful about seeing ramp up during Q4, hopefully. You would also say, logically, we expect to see higher GDP numbers in the Nordics next year. For that reason, I mean, we must expect to see a ramp up before the end of the year, because just not start on high level from first of January next year. Mm. That's one part of it. The other part is actually that we have some, we have had a quite slow pipeline, you could say, and then we have customers a bit more reluctant to make decisions, even though the pipeline looks good, then it's more likely being postponed decision-wise. We have a couple of very good opportunities, coming up for decision in the beginning of the fourth quarter, which could support us, if we are successful, even though, even if we still should be facing growth challenges. Looking at it- Okay. In perspective, I mean, that looks, that could actually be good. Then, and we, at the same time, also should do like a certain clean up of some of our less profitable accounts. That is something completely else. Looking at it, like from a net point of view, then I think it, the fourth quarter could be good with the pipeline that we have available time being. Excellent. Going into the Express Road business, you mentioned you lost some customer contracts in Denmark. Yeah. You're going also to address some of that problems. Will you see better growth from Denmark? Because it seems to have held up relatively well in Sweden and Finland, in the road area. I think that the challenges, of course, in Denmark, that we have, like, this company we acquired in Denmark for a couple of years ago, I mean, is having some a few larger accounts. What we are like trying to do now is that we are trying to spreaden the customer portfolio out in Denmark. We have like, we have strength our sales organization in Denmark, appointed sales managers and account managers and so on. We are, like, increasing the activity level, and that should provide a result. Because, I mean, only going for cost efficiency programs is not like the way that we want to go ahead in Denmark in the future. We need to create a decent profitability, and then we need to build a broader customer portfolio. There are, like, interesting opportunities in Denmark. We just need to bring ourselves in position to ensure the future growth. Yeah, because you will now continue to have some year-on-year negative effects, still from those lost contracts. Yeah. Hopefully, you know, that will improve within a quarter or two, so. Mm. Even though the market conditions are difficult, I mean, we just need to intensify our activity level, and that is the way we need to counteract on what is happening in the marketplace for the time being. Because you had those problems in last year, I assume the quarter-on-quarter effect will sort of disappear. Yeah. here within a quarter or so. Yeah, that is both our hope and expectation, I would say. Finally, the cost part, it seems to be in, on a healthy level, 20.8%, and that's where you would like to have it, I assume. Yeah, definitely. I always like it to be as low as possible with the best qualified staff, but, you know, I think it's on a decent level, so. Yeah. Excellent. Finally, the interesting area of acquisitions here. You mentioned both potentially in the road business, but also in the air freight business. I assume that air freight would be an international angle then, like in Belgium and Holland? Yeah, that is what we are aiming for. As I have to be honest and say it is more difficult to find the right targets on the air freight side than on the road side. it doesn't change. Yeah. the targets are existing, so we just need to be more clever in identifying them. Especially on the road side, there's also a lot of good, strong opportunities, I think, which can both like, you know, provide interesting commercial potential, by we can provide new products, new services, and new transport modes. That's one part of it. The other part of it is, as long as we are, like, in our own geography in the Nordics, I mean, Mm. The Nordics are not that big, despite all. I mean, then we also have, like, interesting opportunities of having cost synergies, which will also can make the cases strong. Currently, we have, like, a good pipeline, and the fact that we also are starting to act on the market and that we acquired Budakuten, even though it was not the biggest acquisition on earth, that still create- Mm. more interest, among other companies. I have to say that, the phone is not ringing all the time, but it's ringing. Mm. Frequently. That's good. When you talk about new market opportunities, is this like in Denmark, when you entered this temperature-sensitive-? Yeah. freight opportunities? Yeah, I think we have, like, broadened that out. We have made a Nordic approach now on temperature-controlled transports. We are, like, running campaigns with the customers on temperature-controlled transports. Mm. We are getting more interest. I mean, I think my barrier with this temperature-controlled transports was that we have always seen it as something which was more difficult than it, than it is in reality. I mean, we have a strong brand, and we just need to convince the customers that we are, we are capable of providing a good, decent service on temperature-controlled transports. Mm. Either it's starting really to build a pipeline, so I hope that will materialize in some good high margin, long-term business for the future. If I end up with this, your I call it your outlook, but you have three different sentences here, and one talking about new services. Yeah. Could you elaborate a little bit on what is new services? When we are talking about these new services, what I'm like thinking of is that we are, like, providing, you could say new initiatives, commercially. For example, we could see ourselves getting into other kind of transport modes, which is not necessarily in the air. We are not, like, planning to go into freight operations or anything like that. We could, for example, consider going into like, distribution concepts, not only based on courier vans, but also based on larger vehicles. That is. Okay. the kind where we see, like, a possibility of, you know, supporting our customers and also providing more deferred, lower-cost solutions than air freight. At the same time. Okay. -provide like, more one-stop shopping concepts than what we have done in the past. I think, even though there's a lot of truck holders, in the market, you know, there is not that many with the kind of quality that we as that service and services concept as Jetpak would be able to provide. Mm. That is some of we're looking into. Excellent. Yeah, I think that's all questions for me. Okay, that was great. Thank you. Thank you. Mm-hmm. Thank you. Thank you. Once again, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Thank you. There are no further questions in queue. I'm now handing it back over to your host for any closing remarks. Thank you. Okay. Thank you to all of you for listening to this Q1 presentation. We hope to not to see you, but at least that most of you will participate also next time. We also hope to be able to provide more interesting insights to some of the most important activities going on in Jetpak for the time being. Thank you, and, have a great day. Thank you. Ladies and gentlemen, this concludes today's call. Thank you for your participation. Stay safe. You may now disconnect.