Hello, and welcome to the Jetpak Top Holding Earnings Call for the second quarter of 2023. My name is Karen, and I'll be your coordinator for today's event. Please note that for the duration of the call, your lines will be on listen-only mode. 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'll be connected to an operator. Today's call will be hosted by Kenneth Marx, CEO of Jetpak Top Holding, and Håkan Mattisson, CFO of Jetpak Top Holding. I will turn the call back over to Kenneth Marx. Please go ahead, sir. Yes, good morning, and welcome to the Q2 presentation in the Jetpak Top Holding. As mentioned, the presentation today will be performed by Håkan, our CFO, and myself, Kenneth Marx, CEO of the company. We will start with the business highlights, and then afterwards, we will look at the financial highlights, digging into the expectations and look a bit at the long-term targets. And then it will be finalized, I guess, by a lot of good questions, the Q&A session. So first of all, taking you into the business highlights of Q2. It has been a quite challenging Q2. We have seen, like, an increased volatility. We also have seen more down trading, which has, like, put a certain stress on the organization, but what also resulted in some good initiatives on the cost efficiency side. The total revenue reached SEK 293 million, which was equal to a negative growth of -12.6%. We managed to adjusted EBITDA SEK 3.8 million, which was with a margin of 11.5%, which was actually the improvement from same quarter last year, which was 10.2%. We have seen that the market conditions negatively have impacted revenues in both segments, but the air segment was one which decreased the most, with -15.2%, and that was essentially due to the situation in Europe, where we have lost quite a lot of the business on the spare parts logistics due to cost efficiency programs at the customer side. But anyhow, this also meant that our margins increased from 40.1 to 40.4, and that was the result of that the business in Europe is generally lower margin than our average air segment business. So that was at least the positive side of it. We had a minor decrease on the road segment with 2.4%, but margin increased to 21.99, coming from 20.1, which was very much due to an improved customer mix with more high-margin customers and business. The negative growth that was experienced by Jetpak was also experienced by many other logistics companies, and if you have been following the Q2 reports from other, companies, either size-wise comparable or bigger than Jetpak, you'll see that this is, like, a general trend in our industry for the time being, and very much driven by both, during the summer, that we have seen a lot of, customers have a lot of stock in, in their warehouses. And the other thing is also, of course, the, still that we have the macroeconomic conditions that we, that we now have been facing for several months during 2023. We still have a situation regarding the, the Road Denmark, which contributed negatively with 13%, during the quarter, due to lost contracts and, and down-trading. As I have informed you before, we have initiated a turnaround program in Denmark, and that is going according to plan. But the only thing is that, we are still struggling with the commercial upside because it's delayed through, both due to market conditions and the pipeline. So what we are achieving for the time being is, the cost efficiency measures that we have decided, but the pipeline still seems to be a bit slow. Also, for that reason, and due to increased tax, Håkan will come back on the goodwill loss, which was result of the impairment test. So, Håkan, he will put some more words on that, but the goodwill loss was SEK 1.7 million. As I also said, we have, like, successfully executed the overhead cost reduction program, and that is also what takes us to a slightly improved, adjusted EBITDA, going from SEK 33.1 to SEK 33.8, and also significantly improved margin due to the fact that we have the lower revenues. We are still working intensively with the ESG activities, and we have mentioned the growth products before. It's not, like, commercially ready for operation yet, but we are, as I also mentioned, participating in some flight tests and also doing some approaches to potential customers, but we still need the authority approval to start off. But at the same time, we're also looking into, more and more into, artificial intelligence driven solutions. We especially see, both on the traffic management side and customer service side, that we in the future could gain benefits out of that. It looks quite promising when you talk with other companies who have been dealing with this for a longer time. As you know, we have, during the last many quarters, prioritized M&As, and that was the same case in the second quarter of this year. We have previously also mentioned this Budakuten acquisition by press releases. So, which was actually a good, even though a minor acquisition in the Skåne region. But we are now in deeper discussions with a few selected targets, and we hope to be able to come back on that at a later occasion. We have been struggling with this for quite some months, and on the many network changes, and also the fact that we are like operating different aircraft types, which are not always suitable for the Jetpak frame. But one part is like the stability of the network, but the other part has also been some disagreement regarding the cost of the network. Because we have regarded the network as being at a lower quality than what we paid for. And what is good actually now is that we have managed to sort this discussion out, and we have agreed on the terms for the remainder of the contract. So I think that is very positive. Those were the words regarding the business highlights, and then I will hand over the words to Håkan for the financial highlights. Thank you, Kenneth. Thank you. I will take you through and try to put some flavor to the financial highlights from Jetpak second quarter 2023 interim report. The consolidated total revenue for the quarter amounted to SEK 293.6 million, as Kenneth mentioned. This represented a total revenue drop by 9.6%, compared with the same quarter last year. Looking beneath that, on the organic growth for the quarter, that amounted to -12.6%. And during this quarter, the figures had then two months of acquired growth effect coming from Budakuten in Malmö area, and they contributed with SEK 4.8 million of revenue during those two months from first of May. Additionally, Jetpak then continued to benefit from an FX tailwind, which also amounted to SEK 4.8 million, and that came in turn from a strengthened euro and Danish krone, with a Norwegian krone partly offsetting this tailwind as it decreased during the quarter. I mean, everything, when we talk about FX, is compared to same quarter last year and versus Jetpak reporting currency in Swedish krona. As I also mentioned, it is worthwhile noticing that the individual Jetpak countries, they have a high degree of what we call a natural currency hedging, since most of each Jetpak country's revenue is being matched by operating costs in the same currency. For instance, revenue streams in Norwegian krone are well met with costs in the same currency, in Norwegian krone, in this example. Turning then into segments, Kenneth mentioned that briefly, the Express Air net revenue dropped by 15.2%. When we adjust for foreign, foreign currency effects, the underlying organic revenue drop for the air segment amounted to precisely 16%. As mentioned, the main effect here came from Jetpak's European-based business out of Belgium and the Netherlands, who have had a revenue drop of 42% between the years. In turn, due to wind turbine manufacturer, who has scaled down its spare parts business with Jetpak. Turning then into the Express Road segment, they reported a net revenue drop by 2.4%. After adjustment for foreign currency and the mentioned acquisition effect from Budakuten for two months, the underlying organic revenue drop for the segment amounts to 8%. As Kenneth said, the net drop here within the segment came from Denmark with 13% revenue drop due to some lost customer contracts. Moving on down in the income statement to the consolidated gross margin for the quarter, that amounted to 31.9%, corresponding to gross profit amounting to SEK 93.8 million. The indirect cost side of the income statement is mainly related to two drivers: personnel costs, not allocated to direct production costs, and those personnel costs amounted to what? SEK 3.9 million. Then the second biggest driver of Jetpak's indirect cost is depreciation, and that amounted to SEK 9.96 million, close to SEK 10 million. Out of this subtotal, then, almost three-quarters, or 74%, related to right-of-use depreciation in accordance with the IFRS 16, the leasing recommendation then. The remainder then, of depreciation, being depreciation of acquired customer relations, amounting to an additional SEK 4.9 million, plus what you could say, the normal depreciation of tangible and intangible fixed assets, including the company's business system, JENA. And that part totally amounts to what you may take, just SEK 1.6 million out of those SEK 10 million. As Kenneth mentioned, during the latter part of the quarter, an impairment test was carried out, which showed that the Danish cash -generating unit had to take a write down, had a write down need on the group's recorded goodwill. This impairment loss amounted to SEK 61.7 million, with full impact on the second quarter. This write down mainly affected the goodwill that was created in connection with the acquisition of the Danish company, 3D Logistik A/S, which was carried out just before the outbreak of the COVID pandemic in early 2020. Reasons for this impairment write down were one, a weakened business performance and outlook for the Danish Express Road segment, in combination with an increased weighted average cost of capital. Please note that, of course, there is no cash flow effect from this impairment loss. If we adjust for this impairment, the EBITDA adjusted margin amounted for the quarter to 11.5%, and that was equal to an adjusted EBITDA of SEK 33.8 million. That is actually better than last year, this despite a lower revenue year-on-year. The operating profit, however, for the quarter includes the impairment loss and hence amounted to SEK -18.8 million. The corresponding operating margin for the quarter then to -0.4%. Further down into with net income, profit and loss after tax for the period, that amounts to SEK -25.5 million. Moving on then, leaving the income statement and moving on to the cash, we should look a little bit on the cash variations. That amounted to SEK +29 million. That was a strong pickup from Q1, and that was achieved thanks to a successful conversion of short-term receivables, including accounts receivables, mainly relating to Jetpak Europe, that was turned into cold cash during the second quarter. The cash position for the group improved and amounted to SEK 167 million by the end of the quarter. That represents a liquidity net increase by SEK 24.7 million between the years. Then keeping in mind that Jetpak since last year have amortized the loans and refinanced the group, and as such, Jetpak now has a net debt position, including the leasing liability effect, which amounts to minus 45 million SEK, and that is equal to 0.3 x the adjusted EBITDA on a rolling twelve-month basis. In connection with the depreciation, I talked briefly about IFRS 16 and that and the impact of that. If you look at Jetpak's net debt position adjusted for the IFRS 16 impact, then the group is actually now negative net debt negative with minus SEK 51.7 million. Or, in other words, Jetpak is debt-free on a net or net cash positive position for Jetpak Group, excluding the IFRS 16 effect. And I think that concludes this quarter's quick financial highlights walk through. And with that, 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. Talking about expectations for the coming quarters is not the easiest issue, I would say. But nevertheless, our expectations is that, or are that we actually will see also during Q3, a continued, weak quarter. We expect it to be more or less on the same level as, what we have seen, during Q2. Of course, we'll continue with our cost efficiency programs to mitigate, from the lower revenue. That's, that's obvious. And then ahead and into the fourth quarter, during the fourth quarter, to see a slight pickup from, quarter three. And we also see some new business where we have positive indications, but it is still to be seen. So a continued weak, Q3, and then, we anticipate, a slight pickup during, Q4. We also expect that, Europe and Denmark will be ramping up based on their current pipeline and commercial, but we expect to see the full impact from, these activities before the start of, 2024 during Q1. We will, of course, carefully monitor the development, and we will also like act on any kind of negative impacts by further ramping up on our strategic initiatives. We have already mentioned our efforts to, find suitable M&A candidates, both to improve our market position, but also to obtain, which is important. And talking about M&A, I mean, we still have the focus both on the, on the Nordic countries. That means, primarily, Denmark, Norway, Sweden. But we're also looking, like, towards, Europe to, see if there's any good opportunities. We still regard the market as being favorable in terms of doing M&As. We also expect to introduce new services to ensure a continued organic growth. I mean, we have been working a lot with building the pipeline on temperature controlled products, and we are more and more successful in that. And also at the same time, we are having some interesting discussions on night logistics, which we also hope to see materialize someday in the future. We will further look into the opportunities of optimized by using new technology. And as I mentioned before, we are of course open to the well-known technologies of electrically driven vehicles. Also future the drone as options for our first mile, last mile capability. And then also enhancing our administrative setup and reducing overhead costs by using, for example, AI solutions. So I think there's a lot of interesting things ahead of us, even though, of course, the market is challenging for the time being. And with that said, we just need to mention that we are maintaining our long-term targets for organic growth, as well as a continuously improved adjustment. So, so those were the words, the expectations, and then I will hand over to Håkan regarding our long-term targets and reviews of where we are. Thank you, Kenneth. I'll do a quick recap on reminder of Jetpak's communicated long-term financial targets and where we stand in comparison to those. Regarding sales growth, we have been communicating an average annual organic sales of 5% overall. And that target, looking at 2023 Q2, we missed significantly with -12.6%, compared to last year same quarter, we were at +17.4%. And, for the full year of 2022, we reported +11.4%. So a big deviation there during this quarter compared to a little bit what you can say is the longer term or trend that we've been having. Shifting gears from revenue growth over to profitability, Jetpak has communicated a long-term adjusted EBITDA margin of 12%. Looking into this quarter, we were actually very, very close to meet that long-term financial with a reported 11.5% adjusted EBITDA. Last year same quarter, we were 10.2%, so an improvement with 1.3 percentage points. For the full year last year, we were exactly at 10.0%. I mentioned the net debt. There we have said that our net debt long-term should be less than 2.5 x net debt versus adjusted EBITDA on a rolling twelve-month basis. As I mentioned, we are almost debt free, with 0.3 x net debt adjusted versus adjusted EBITDA. And, as you know, the dividend policy to distribute our net profit, but as you know that over the last few years, there has been no dividend, which instead has been first COVID related and then, M&A, aim for M&A. And as I mentioned, the cash at hand right now, at the end of Q2, amounted to SEK 166.7 million. With that, I think I hand over the word back to Kenneth. Yes. So with Håkan's words regarding long-term targets, we have finalized the Q2 interim report presentation, and we will now be ready to answer any questions that you would have. So thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question on today's call, please press star one on your telephone keypad. A voice prompt on the phone line will indicate when your line is open. Please state your name before composing your question. Well, good. Yes, good morning. It's Anders Roslund from Pareto. Yes, I had some questions regarding the sales outlook here. You talk about this client in the Benelux area stopping or reducing its spare parts business. How does it look going forward? You mentioned that you expect about the same sales development, and I assume this situation remains then in place for forever? Like, the spare parts business. But I don't hope it will, but, you know, the spare parts business has changed in Benelux. Due to the customer that's chosen for part of their flow, more cost-efficient solutions. I mean, we had, like, provided express solutions for quite some time, and they simply prefer to go for more slower solutions, which is possibly understandable, but of course somehow jeopardizing our revenues in Europe. And the challenge has been that there has been like a building up concentration with a fairly large part of the revenue on few customers. So when by losing revenue on these customers, significant impact. The good thing is, of course, that we have, like, a very good and a very responsive head of Europe. Already now, I mean, he is getting a new board. I mean, we need on trade, as I also said, we hope to see some good impact from that, from 2024. So for the time being, of course, it's a challenge, but in my view, there are good initiatives on the way, and there are some side contracts which in the longer term perspective, will like counterbalance the loss that we have had in the recent months. We're continuing to be somewhat cautious about the fourth quarter, and you said that you expect it to be better than the third quarter sequentially. So usually, I would assume year-on-year will be negative, or do you mean that you even year-on-year would see? I think it would be saying too much for the time being, because currently I think it's very difficult to look into the crystal ball and have any idea about whether we should go in a zero growth or not negative growth or what would happen during Q4. The only thing I can say is that I expect a slight ramp up, and then I know that we have some interesting business prospect which will support Jetpak during Q4. But of course, we need to see that it's on board and when it starts to trade. So I hope and expect that we will improve the situation from Q2 to Q3. But reaching just a zero growth during Q4, I think, will be ambitious, but I think it's too early to tell. Yeah. But that is very interesting with the new business, is that in various areas, and I assume that new business means also a higher level going into 2024. Yeah. Yeah, yeah, it's business support in Europe, but we also into it. Okay, so road business is coming back. You do have very good, or better than expected margins in both divisions. Yes. Despite the relatively weaker demand mention in your written outlook, the overall macro amount and also on pricing. So should we expect this to be the peak margin-wise, and then you have to compete a little bit more with pricing, or how should we see it? I think that currently, I think currently the situation has stabilized on the pricing side. You know, we are like, and we are also working intensively on still being even more intelligent on our pricing in the future. I think it's the outside, I mean, where we have, like, especially in the Nordics, we still have, like, a good pricing power, and that is, you know, the segment with the highest margins. Where if you look, if you look at the road segment, there's a lot more competition, and we see a lot of commercial activities in the market, you know, with the competitors really offering low prices to get customers on board. So of course, I see a risk in the more low margin road segment that we would face an increasing price pressure due to the, but I think I will be able. Just another question about pricing. You have used sort of index-based pricing with price surcharges for fuel, et cetera. How are these price surcharges developing? Are they taken off now, or? You could say that we have, I mean, we are maintaining the surcharge levels. But of course, we also like responding to what is happening among our competitors in the marketplace. But we are like maintaining the methodology and following the index, which we have applied from the very first phase back when we had the breakout of the war in Ukraine. I'm impressed about your sort of other cost levels, and that's down to 20.4%. Is this current level a new normal or you're aiming for that? Yeah, aiming for that, and, you know, we have talked a lot about other new initiatives that we have not launched yet. Also talked about, you know, further improving our traffic management and customer service functions. And I think that would be like more projects, even though we see solutions which has been creating benefits for other companies. My experience is that it takes some time, and it is like a change process, not uncomplicated. But I mean, nevertheless, we are like pursuing the best possible cost ratio level. And I would not like put my neck in front of you and say that we will go for the 20%, but we do it as good as possible. That is definitely what we're aiming for. So what you're saying is that you may need some measures for increasing growth, is traffic management and other solutions? Yeah. Improve our competitiveness by using these kind of technologies, yes. Mm. And then the, the Danish business here, you were talking about the restructuring already initiated. Yeah. At the same time, you are very supportive regarding what do you call it, sensitive transports... Temperature control. Temperature sensitive, temperature sensitive transport. Yeah. Which is part of the Danish business, or based on the Danish business. That is also part of the Danish business, you know, but it's something that we want to broaden out also in the other countries. And then we are like successfully building pipeline, most important on that. And that has been important because that's like, it's another kind of business where you can achieve higher margins and also have, like, higher barriers of entry. The situation about the Danish business is actually that we lost some specific part of temperature control business, for example, animal transports. So that is what we had a lot of in, also in the past in Denmark. And this we have more or less lost. And then we had some other customers which were not, like, temperature control related. And these customers are, you know, the situation with Denmark is that we have like, a more. We are still asset light, but we have like a more fixed network serving a lot of, repetitive customers, each day in and day out. And this network is asset more like fixed by nature compared with the other parts of our business. Then when we are losing business, you know, you're more or less having the same cost. If you imagine the two-thirds of the network is like fixed cost, and one-third is variable. And that means that what we really need to do, in addition to, of course, also cutting costs in other areas in Denmark, is to get new business on board. So just fill up the network. Yeah. That also means that we are actually capable of also offering very competitive prices just to fill up the network and which will also provide an okay margin for us. The problem that I'm trying to describe is that, you know, with the current market conditions, it's one thing is building the pipeline, which is doable. But, you know, getting the customers on board and make other decisions on for their logistics, it's taking more time. I would say we are successful on the part talk about cost efficiency, not exactly on this part of the network where we have like the challenge, but in all the other parts of the Danish business and also reducing overhead costs and so on. But we need to win some more contracts to the level where we want to be. That is the reason that we are saying that actually we are delayed in this turnaround process, but it's going in the right direction, and I think we will also be hopefully supported by the market within a few quarters. But nevertheless, I mean, we see improvements, and that's the most important thing. But the new business you're talking about, is it within Denmark or is it in the other Nordic areas? That is, that is in the other Nordic areas, but we also have some business and pipeline in Denmark, which could prove to be valuable for Jetpak. But we are not that close to this business yet. Okay. So when we look into the end of this year or next year, do you expect some new businesses in the air segment, and you expect some new businesses in road transportation, and you also see a relatively weak macro climate? Yeah, exactly. Exactly. But I think that we have also been forced to adapt ourselves to this new situation and also, like, find more cost-efficient solutions, even though we're spending time on especially in the road segment, the air segment is like more fixed, you could say, because we have these long-term contracts. But we are like really exploring other ways of making our systems work on the road side, which also means that we can ship in on the perhaps business that we would not have shipped in on in the past. Okay. So, yeah, it's look like an interesting future. I just have one final question. You mentioned, also a couple of quarters ago that you had a long-term plan with international carriers. Yeah. How is that progressing? Slowly. Unfortunately, it has been, and that is very much related to Europe, where we have wanted to start up like direct network as we have in the Nordics, and where we have a very strong network. You know, the challenge about Europe is to get the major airlines on board. And, you know, we have been in talks with really major airline in Europe, and currently they are on hold as far as our direct network concerned. So what we're finding is like smaller airlines will not provide the same strength to the network. So we are not like, we are not where I would like to be, but we need to work. About SAS and other carrier, but sort of important decisions taken here, or is it a gradual process with SAS? We have a contract with SAS, and SAS remains an important supplier to Jetpak. I mean, we have been forced to gradually use other carriers more and more, especially because SAS, like, reduce the flexibility, you know, so we're not, like, allowed as we were before, to get to the aircraft in last minute and before. So we have transferred some business to other airlines, which provides the flexibility that we need, especially in the weekend. SAS has been an important carrier for us on that, in that respect. But the SAS will also be important for the future. And then we have had some quite tough discussions with SAS in recent months. We have had some discussions also regarding what we are paying for. I mean, because we didn't think that the provided capacity that really was a part of the agreement. And that has, of course, been a risk if we could not agree on how it should be for the remainder of the contract period. But fortunately, we have managed to do that, and they have accepted that, you know, it is not the same quality network. They don't provide the same capacity. So that means, the best case scenario for me is that our unit cost is, you could say, not changed. So when we're utilizing less, we are also paying less, and that was a part of the risk in the way the contract was made before. Okay, excellent. I have no further questions. Thank you. Okay. Thank you, Anders. Yep. We have no further questions in the queue. As a final reminder, ladies and gentlemen, if you would like to ask a question, press star one on your keypad now. There are no further questions, so I will hand you back over to Kenneth Marx. Okay. From the CA conference. Yes. Okay, so thank you to all of you for listening in today at the Q2 presentation, and, we hope to meet you again at the Q3 presentation. So have a... Thank you. Thank you. Thank you for joining today's call. You may now disconnect.