Hello and welcome to the Jetpak Top Holding Year-end Report Conference call. My name is Natalie, and I will be your coordinator for today's event. Please note, for the duration of the call, 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 questions. If you require assistance at any point, please press star zero and you will be connected to an operator. I will now hand you over to your host, Mr. Kenneth Marx, CEO, and Mr. Håkan Mattisson, CFO, to begin today's conference. Thank you. Yes, good morning and welcome to this Q4 presentation in Jetpak Top Holding. From Jetpak's side, presenters are Håkan Mattisson, our CFO, and myself, Kenneth Marx, CEO of the company. The topics for today are like the same as we have done before, starting with business highlights, going to the financial highlights, talking about expectations and focus areas, and then followed by a Q&A session. Digging directly into the business highlights, as you all know, it has been somehow challenging during 2023. So the last two quarters has not like been the easiest ones. But I think all in all, we have provided satisfactory results both in the Q4 and also full year, despite a continued low demand and volumes. Market conditions remained difficult during the quarter, and we have seen a great volatility. Compared with Q1, Q2, we had some further downturn in the last two quarters of the year. The revenue was SEK 297 million. We had a negative growth of 7.4%, full year -5.5%. Looking at the adjusted EBITDA, it was at SEK 33 million, which was equal to a margin of 11.1%, and an improvement compared with same quarter last year. Revenue deviation of around SEK 24 million was mainly from Denmark, Europe, and Norway. Sweden was, of course, on the safe side based on also the acquisitions of the companies, BudAB and Budakuten, during the year. The main pain was, of course, still the negative development from Europe, which where we have this ongoing turnaround program in place. Yeah, segment revenue decreased the most, between the segments with 14.6%, and it was very much driven by network issues, especially with SAS now changing cut-off times, also the fact that we have, like, now a changed handling concept in Norway, which makes transfer of shipments more complicated. And that was also network issues also in combination with a lower demand in general, also price competition, substitutions for more deferred transport modes, and especially also lower margins in Europe. The road segment increased modestly with 1.9%, of course, very much fueled by the M&A process around BudAB and Budakuten. The margins increased from 21.3% to almost 23%. And the margin increase was very much related to optimization of current contract and then cancellation of two very low-margin contracts, which did not provide value to the company. We have, during the quarter and also during the full year, benefited from a continued strong cost control, also the fact that we have very more leased products than other logistic companies in some of our segments, and a very variable, scalable production model with which is both asset-light and based on a high variable cost. So that has really supported us during the year. We have also seen that more commoditized, large logistic companies have reported significant negative growth, mainly due to capacity and price issues. And in that way, we are in a much better position compared with these companies. The turnaround program in both Denmark and Europe is continuing. Denmark is actually ramping up, showing improving results during the last months. In general, I have to say, for most markets, we have a pretty slow pipeline, a pretty slow conversion still, which really reflect the continued difficult market conditions. We see that on the trade, but also on the general trade and on the pipeline that it is like we are struggling, and we have been doing that for the full year, but especially Q3, Q4. Overhead cost reduction program was successfully executed during Q4, and we have established a strong platform for growth. So we are, like, able to adopt more business, which we expect to achieve, not the first or second quarter in 2024, or in best case, by the end of the second quarter. We have a strong platform for growth, definitely. ESG activities remain a high priority, and we see, like, increasing demand from our customers for electric vehicles. So we are in the process of like evaluating possibilities, making analysis of range versus distribution areas and so on. So you can expect to see an increased amount of Jetpak electric vehicles on the roads during 2024. And also still drones and AI is focus areas for Jetpak, and we especially in a shorter-term perspective see some benefits from AI where we can automate some manual processes today. As you know, we have successfully by the end of Q4 acquired Kvalitetstransport. And we see with the Kvalitetstransport that we will have like a full integration of the company during the first half year of 2024. We do expect substantial synergies in Norway based on this acquisition, also due to the fact that the companies are, like, door-to-door at Gardermoen Airport, and they are having, like, very complementary services. So when we see, like, a demand for more deferred solutions going from air to road, we also have this on the pallet now with the acquisition of Kvalitetstransport. So I think all in all, that is very good and promising for the future in Norway. And with these words, I will hand over to Håkan for the financial highlights. Thank you, Kenneth. I will take you through and try to put some color to the financial highlights from Jetpak's year-end 2023 report. The consolidated total revenue for the quarter amounted to SEK 297.1 million. This represented a total revenue drop of 7.4% compared with the same quarter last year. Digging into the organic underlying growth for the quarter, which amounted to -12.6%. And we had an acquired growth effect coming from Budakuten i Malmö AB, which was acquired in May last year, and also from the fourth quarter, BudAB, who jointly contributed with SEK 17.5 million of revenue. This quarter, Jetpak actually had a small FX headwind with -SEK 380,000 after a lengthy period of FX tailwind. And that was, of course, as you all know, due to a historically weak Swedish krona for the last one to 1.5 years. It is, however, worthwhile noticing that the individual Jetpak countries have a high degree of what I call a natural currency hedging, since most of each Jetpak country, country's revenue is matched by operating costs in the same currency. For instance, revenue streams in Norwegian kroner are well met, with costs, operating costs in Norwegian kroner. And the same goes for Denmark, Finland, and Sweden. Segment-wise, Express Air's net revenue dropped by 14.6%. If we then adjust for foreign currency effects, the underlying organic revenue drop for the air segment amounted to 14.5%. That is on the same level, and we didn't have any acquisition effects in, within the Express Air segment. Switching over then to Express Road segment, which, Kenneth touched upon, the revenue actually increased by almost 2% or 1.9%. But when we adjust for the acquisition effects for BudAB and Budakuten, the underlying organic revenue drop for the road segment amounted to -10.7%. As Kenneth said, the net drop within the segment mainly came from Norway, Denmark, and Finland with a combined -8.1% revenue decrease. Going over then to the consolidated gross margin for the quarter, which amounted to 30.1%, and that corresponded to a gross profit amounting to SEK 89.3 million. Further down into the P&L, the indirect cost side of the income statement is mainly related to personnel costs, not allocated to direct production costs. Those personnel costs amounted to SEK 38.2 million. The three-year long-term incentive program, which is part of the personnel costs, came to an end by year-end 2023. The provision for this program on the balance sheet was set to SEK 13.3 million. We are then, hence fully provided for this LTIP program and no effect on the 2024 P&L. The second biggest driver of Jetpak's indirect cost is depreciation, which totally, according to IFRS, amounted to SEK 10.9 million. Out of this subtotal, as much as 70% related to right-of-use depreciation in accordance with this IFRS 16 Leases standard. The remainder the 30% remaining part of the depreciation relates to acquired customer relations amounting to an additional SEK 1.6 million, plus the what I would say the normal depreciation of tangible and intangible fixed assets, including the company's business system, JENA, and that totally amounted to just SEK 1.6 million or 15% of the total recorded depreciation sum. So not much is related to the underlying normal depreciation, if you may say. The operating profit then for the quarter amounted to SEK 31.4 million, and they adjusted the EBITDA to SEK 33 million. The depreciation of acquired customer relationships, which I mentioned of -SEK 1.6 million, is then added back in this alternative performance measure, which we report on, adjusted EBITDA. Profit and loss after tax for the period then amounted to SEK 24.9 million. Our effective tax rate affecting the consolidated figures amounted to 11.8%. The relatively low tax rate for the group total was achieved through the usage of previous tax losses carried forward. Basic earnings per share for the quarter amounted to just about SEK 2, SEK 2.04 to be very precise, and that is the same figure for diluted earnings per share as we no longer have any dilution effect on the profit per share KPI. Shifting then into gears into cash and cash flow. What we measure is here is cash flow from operations. During the quarter, that line amounted to SEK 40.9 million. So we have continued very good level of cash conversion. The cash position obviously then improved and amounted to SEK 227 million by the end of the quarter. And that represented a liquidity net increase by SEK 48 million between the years. Then keep in mind that Jetpak since last year have acquired two companies for own cash. And on top of this now, for the second quarter in a row as a listed company, Jetpak had a continued negative net debt position, including the leasing liability effects according to IFRS 16, amounting to -0.1x the adjusted EBITDA on a rolling 12-month basis. And that concludes this quarter financial highlight walkthrough. With that, I hand the word back to Kenneth for further comment on the market and overall business trends for the coming quarters. Okay. Thank you, Håkan. So talking about expectations and focus areas for the coming quarters, we still foresee that the coming two quarters will provide some challenges. Hopefully, we'll see a ramp-up by the end of Q2. But this current revenue volatility and downtrading, we do expect to continue. You also have to take into consideration looking at the comparison figures for the coming quarters that we had actually a pretty decent Q1, Q2 in 2023 where we were meeting, like, a weaker Q3, Q4. That is what we are bringing into the first quarter of the year. Europe has remained an issue during Q1, or will remain an issue during Q1, and we continue with the cost and revenue initiatives. But we do expect that we will by the end of Q1 be on a level which is acceptable. And then we'll start heading towards what we have expected budget-wise afterwards. The good thing is that Denmark was concerned during last year and actually, based on a number of initiatives, especially on the cost side, but also the fact that we are bringing new customers on board and that we have, like, rearranged our network, both in Jutland and Zealand has brought us into a lot more positive development. So we expect to see, like, decent, good results from this company during the year. We have talked a bit about Kvalitetstransport, which will be a full integration. The Kvalitetstransport name will, of course, disappear during the year. But currently, this integration is ongoing. We see, due to the location of the companies, the location of the majority of staff, due to the comparison and also complementary products that we see and the way that we can further professionalize the processes in Kvalitetstransport, we see quite a big operational benefit. But we also see, like, a commercial benefit. But the operational benefit will be, like, I think we will reach the level expected from mid-year. And then, of course, we'll do some further summarization on what's for the last two quarters. Regarding the commercial benefits, we expect to see that during Q4. In the meantime, main focus will be on the integration process. Looking at what we will get in Norway is also the fact that we'll get, like, a much more extended product portfolio, and we will provide one-stop shopping to our customers, which will also, like, partly neutralize these network issues that we have been meeting, especially with SAS, for the last many months with reduced cut-off times and reduced flexibility in terms of our air product solutions. It's also good to note that the acquisition of CTS previously in Denmark, BudAB in Stockholm and Kvalitetstransport will enable us to establish, like, a Scandinavian-wide airport and forwarder solution that we will introduce during this year. And we are quite hopeful regarding the impact on both revenue and also contribution based on this concept, even though we will not quantify it for time being. We have continued work with supplier models and IT solutions, and we expect that also to benefit our operational costs from the second quarter in 2023 or 2024, sorry. And we see that the further introduction of electric vehicles will provide both environmental but also co-commercial benefits for Jetpak and for our customers. We expect to see an increased share of special service solutions and spare parts and temperature-controlled logistics during the year. That's one of our commercial focus areas. And then we have been working intensively with our sales efforts and our product development, which is key areas to neutralize the current rather negative revenue development, organic revenue development. It's important to say that, even though we are very eager to make more acquisitions, good acquisitions also in the future, we will put acquisitions on hold for the next three months because we are spending a lot of energy and quite many resources on the integration of Kvalitetstransport in Norway. It is almost doubling the size of the Norwegian organization. So, as you can understand, putting two companies together with a full, full, integration to one is something which needs a steady hand. We need to be in control of what we are doing so that it will be the main priority for the next three months. We do expect to see a continued weak organic development in Q1 and also part of Q2. I would not surprise if I was seeing like organic in the last year revenue figures in line with the previous two quarters. But I think it's very uncertain for the time being. But most indications and reports are pointing towards an improved situation from Q3. But we will be much more clever after Q1 and Q2. So finally, we are maintaining the long-term targets for organic growth and continuously improved adjusted EBITDA. So that was the finalization from my side on the expectation and focus areas. And then, as usual, you will have the opportunity to ask any questions when we are like entering the next part with the Q&A session. Thank you. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star one on your telephone keypad. At the prompt, please state your name and company before posing your questions. If you wish to withdraw your question, please press star two. Thank you. We will now take our first question. Your line is open. Please go ahead. Yes. Good morning. Good morning, Anders. It's Anders Roslund from Pareto here. Yeah. I would like to start off with some questions regarding the growth scenario for this year. You mentioned that you expect organic fall of almost the same size as you've seen during the last two quarters. I mean, major part of the volume loss last year was, I would call it, lost business in Europe and also lost business in Denmark. But for the coming quarters, is it more an overall demand decline or a weakening demand? I mean, what sort of this almost double-digit or if we talk about some 10% organic fall, is it a broad-based downturn, or is it even lower sales in Europe and what sort of how do you see this sort of negative scenario for? I think there's various things that you need to take into consideration. I mean, looking at Europe for the first quarter of 2023 was very strong. I mean, very strong performance during first quarter and also partly during second quarter. But you know, they lost, or had major downtrade on these big contracts, by the end of first quarter. But and then looking at the comparison figures and the revenues for Q1, Q2 was still pretty decently strong. But you know, in Q4, we were severely hit by the European situation. Then in the meantime, we've been struggling in Europe to create, you know, more revenue and opportunities and so on. But of course, we carry this with us into the first quarter this year. Europe was a big blow on the revenue side. Also in addition to that, you can say we have actually decided to go out of two larger contracts on the roadside, which was not like profitable for us. But in terms of revenue, I mean, it was probably around 3% of our total revenue. So you know, Anders, Q1, Q2 last year was strong. We are like into these quarters coming from not at that strong Q3, Q4. And that is actually what we need to deal with in the first quarters. So, I'm more. I prefer to be conservative and a little bit pessimistic around this and say that I would not be surprised if during Q1, we will meet the same negative organic growth figures as we have seen during the last two quarters. But on the other hand, I also. It's very difficult to predict for the time being. I mean, we are hearing the same things also from our competitors and customers. And we still see, like, especially on the road accounts, we see on some of our old media accounts, we still see a general downtrade. So it's not like we have lost business or anything. But we see, like, that these accounts are, like, also struggling with the demand from their customers. So it's more. Yeah. Like a tendency that we also, like, bringing into to, you know, our expectations. But and I'm mainly concerned about, you know, how we provide a decent, good, acceptable EBITDA result. And that's also why it's so important with these acquisitions and getting out the synergies and so on. And of course, stating that the acquisitions is on hold now does not mean that we'll not do acquisitions for the future because I think there's a lot of interesting opportunities due to the current pricing. But it's just to say that the most important thing for me for the time being is to protect and improve our results. And that will especially now also be based on what we're doing in Norway with the Kvalitetstransport. Oh, it's excellent. You last year, you talked about possibly new business coming on board in the fourth quarter. How do you see about the possibility of gaining new business in this year? I think we have seen, like, this slowdown. We didn't get to gain the business that we expected during the fourth quarter. You know, decision process and that was Norwegian business, especially, was simply so slow. And it turned out that it was too complicated for this big company which wanted to make this contract to, you know, sort out their internal process around this. So they decided not to make the change for time being. So we didn't get that business. And I think that, looking at pipeline I mean, we still have a strong pipeline development, but I see it takes longer time to close the business. So what we're doing now and what I'm really pushing with the sales organization is that we need to also improve, you know, our lead generation, our pipeline assessment and so on to, like, be even more sharper in the future on running after the right type of businesses to, like, compensate for the current situation. And at the same time, we have also, like, established what we call as sales boost product internally, which means that part of management and myself meet with the operational and sales key persons to discuss, like, product development, discuss, like, sales performance, and discuss ramp up on sales organization. We do that two times a month because that is simply, you know, to get it and push it even more in the future and to neutralize what we have seen as the negative impact from, you know, the low growth rates that we're meeting for the time being. Excellent. Yeah. Going over to the margin development, there are two things that stick out: the impressively high margin in Express Road and the overall lower central costs. So how sustainable are this mixed development you mentioned in the road business? Is it something that is, on a higher margin now going forward given the mix you have? Or, or is it, mix effect that are a little bit, one-time effects or? You know, it's a difficult question, Anders, because when we acquired this Kvalitetstransport in Norway, which is purely a road business, we acquired a company which was having revenue around NOK 100 million and a company having NOK 3.5 million-NOK 4 million on bottom line. So that means it was on a much lower level than what Jetpak has in general. And that was also, like, reflected in the price and so on. My ambition regarding this project with Kvalitetstransport is to take out sufficient synergies to bring them up to what I would regard as being the normal Jetpak EBITDA margin, you know. So that is the ambition. That does not mean that we then would be improving the overall margin of the road. But it means that we will bring in absolute figures of better contribution. And because I think it would be wrong of me to say that we expect to further improve the margin because we need to realize that we get quite a big amount of business on board, low-margin business, but a decent price. We bought the company, and we see a lot of synergy potential. And we will realize that. And if we can protect the current margin percentage I mean, all other things being equal, based on this with Kvalitetstransport, then I think that would be very good because then we have made a very good acquisition. If in addition to that, we will be even more successful in the future with these, you know, more niche products on temperature control and special service and so on, that is the type of products that could further improve the margins also on the road business. Talk about, you know, our overhead cost and how sustainable we see that for the future. I think that overhead cost ratio-wise, it will be sustainable, possibly if you take the current revenue level on a lower level because I think that we will have to invest in the organization and also to, like, make some patchwork on the things where we know we have been weak for the last months because we have taken out a lot of savings. So that's important. But I think that, with the expected revenue increase during the second half of 2024, I think we will still have an attractive overhead cost ratio but possibly not as low as it is for the time being. No, but I mean, the margins you have in the Express Road business in the fourth quarter, even if it's diluted by acquisition, it's still. Yeah. Far higher than I expected. I mean, it's a new higher level for that business, Yeah. The existing business. Yeah. And that's good. That's also, like you would say, that's also partly fueled by the fact that, Bud, the company I acquired, have, like, quite good margins. And the same goes for BudAB that we acquired in Malmö. So I'm just flagging. We took over, like, Kvalitetstransport in Norway, which is really a big business in terms of revenue and employees. In terms of results, we took that over from start of January. And that can, Partly dilute the margins for some time until we by mid-year has, like, made the full realization of synergies. Yeah. That's very interesting. While you have improving your Express Road business, it looks like the Express Air business is a little bit weaker. But given the weak volumes, I guess that's, Yeah. How do you see the Express Air gross margin development? I think that it's very much, you know, a number scale in terms of revenue and also because we have some cost allocations internally, you know, from warehouses and all other kind of things which are more or less fixed, not as variable as it is with our subcontractors. So when revenue is getting lower as it has been, I mean, then we are like then we're getting dependency on the margin. But I hope to see that with the pickup of revenue expected during second half of 2024, then we will also see improved margin on the air segment. I think we have been struggling a bit with changes from SAS, change cut-off times and so on in addition to also what we did with the network. I mean, starting with COVID-19, the network is. Not the same now. And it will not be the same. But I think we have performed decently despite that. And we're also utilizing other carriers. But I think that if we see this pickup on revenue during second half of 2024 and in addition, we will be successful with this sales boost and the investment we're doing in digital marketing campaign now, I think it would be acceptable that we'll see an improved long sale on the air segment and an improved long sale, meaning also more direct business which is, like, our crown jewel and the high-margin product that we have. Then that will have a positive spin-off on the overall margin on the air segment. Yeah. Coming finally to the acquisitions. They have been entirely now, for a couple of years in the road business. Yeah. You mentioned here that you will sort of consolidate now for, for the coming month. Do you mean months or quarters? No, no. I mean, for the next three months, I will fully concentrate on this, Kvalitetstransport. I mean, I'm quite frequently in Norway and, part of my organization's quite frequently. Norway. And it's so important that we're doing this in the right way because it's still a substantial amount of money for the Norwegian organization. So we need to take out these synergies that we have to find. So. But I mean. Yeah. Yeah. Excellent. Yeah. Yeah. We will not stop the process, Anders. It's, it's just a matter of we're not, like, a big, big organization. We are now around 300 FTEs in total. But, but I think that, it is clever to do, the right things at the right time. And, and, and we know there is a good pipeline on, on, further possibilities on, on M&As. But it is also as, as you just said, I mean, it's, it's mainly on the roadside. We would also like to see more on the air side. But it's, it's more difficult to find because then we're getting more into, like, normal border business. And that is, not really our home turf unless it's, it's, it's a kind of special forwarding. And that is not that easy to, to find in, Northern Scandinavia nor in, in Europe. Yeah. Okay. I mean, three months is a very short time. I, I would be I thought maybe you meant that you will sort of stay out of acquisitions for the coming year. But, Oh. Okay. That, I mean, from my perspective, no. But of course, that will be the issue for the board also to discuss with me and for shareholders and so on. But for me, I would like to continue this path if we find, like, good cases because to grow Jetpak also in the future. I mean, cannot only organically. That also needs to happen based on acquisitions. And you know, three months, I'm not, like, that patient. So I don't think we can spend the full year integrating a company which is 40 employees in Norway. I think we need to. No, no. Make it very focused and do it. And there is a deadline for this. And that is, the 1st of July. Everything should be finished. And I expect, like, by the end of May that I can, like, draw myself a little bit out of this process and spend more time on new opportunities on the M&A side. And then you have the choice to go for new areas like temperature-sensitive business or. Yeah. Geo-geographical footprint. Yeah. And then it should be, I guess, more air-oriented. Yeah. That is, that is what we're hoping for at least. But, you know, still. It's also the right targets on the roadside with high-margin business, what we found with Budakuten and BudAB. I mean, then we will also, of course, get into that. Just to understand a bit. Those three acquisitions you made in connection to the big airports, Arlanda, Kastrup, Gardermoen, are they sort of pushing also the air freight business? Or is it more consolidating costs? Or what is the rationale behind those three? You could say it's, with that business, it's not like pushing Jetpak air business. It's more like, you could say, an extended arm for the forwarders. So the forwarders are, like, deciding on the airline haul themselves. But we are providing all services around that. But what it in the way that it could push the air business is that these companies also have, like, forwarder customers which is, like, also starting to utilize our air network more than what they did before because now they have, like, a broader pallet to sell. But their specific business is not pushing air business. It's more like this one-stop shopping philosophy which can push business. Okay. Excellent. I had just a nitty-gritty question here regarding the incentive program. Did you take any charges in this fourth quarter for this incentive program? No. Actually, we did a re-release in order to align the program as it ended by the year-end. And as I mentioned, right now we have SEK 13.3 million on our balance sheet in order to have it aligned and not having any impact on, How. On 2024. Sorry. How big was this release then? It amounted to SEK 8.9 million. Yeah. But how much was that in the fourth quarter? SEK 8.9 million. Okay. Good. Yeah. I think that was all the questions for me. Okay. Excellent, Anders. Thank you. Thank you. We currently have no questions coming through. As a final reminder, if you would like to ask a question, please press star one now. There are no further questions. So I'll hand this back to Mr. Kenneth Marx to conclude today's conference. Okay. So, thank you to all of you for attending this call. So, I think it's always good to be challenged by questions on our performance. And hopefully, you got some more valuable insight to what is happening and what our expectations are. So, thank you to all of you. And then, we'll meet again on the line after Q1. So, have a great day. This concludes today's call. Thank you for your participation. You may now disconnect.