Okay, hi everyone and welcome to our quarter report, the Q1 for RevolutionRace. The second quarter as a listed company. First I would like to talk a bit about that we have reached the milestone today. It's a historic moment for RevolutionRace and the team of RevolutionRace. SEK 1 billion in running 12 months is a huge achievement for us as a company. Who could have thought that when we, me and Niklas started in a garage eight years ago? We have built a strong brand together with our customers on social media, and we have caught their need and expectation of us as a brand. I want to show you a short movie that reflects who we are. Please enjoy. Okay. I got goosebumps now. I hope you can feel the energy of RevolutionRace. I just want to say hello to all the amazing workers at headquarters Borås. What an achievement, both the eight years achievement and the quarter. I want to go over and discuss about the quarter now. I'm very, very proud to present 95% growth and with that said, improved EBIT margin, 124% improved EBIT margin in this quarter. We are growing in all regions, even in the more mature regions, Nordic countries still growing by 53%. You can see that we are actually building a very strong brand. We are very focused on the customers' needs, and by skipping the middle man, we can give the customers better experience with our brand and at the same time, high quality products at reasonable prices. That is pretty much the direct to consumer business model. We have over 300,000 unique product reviews and the score is good, 4.6, and Trustpilot, they have 4.2, and we are constantly achieving to improve these numbers also. We are increasing numbers both when it comes to average order value, SEK 793 million, that is an improvement of 3.6% comparing to last year, and the reason for that is, better product mix and also that we are selling more in the European countries and rest of the world than last year. You can see that DACH is a very strong region for RevolutionRace. We grow by 156% and recently we added Switzerland, but in this quarter, the effect of Switzerland launch weren't that high because we launched very late in September, but we had a great start, actually better than expected. All the P&L numbers show great strength, both operational and brand strength. 28% in this quarter, EBIT margin, and last year we had 24.3%. In the situation we are with all the trouble with the supply, I think that's very good showing you guys that RevolutionRace focus on building the company with expertise in-house is one of the biggest advantage that we have as a company. When you're comparing the numbers, the EBIT margin is improved. The growth is 95%, but if you talk about local currency, it would have been 98%. We can go further. Yeah. As you see, they reach milestone SEK 1 billion in net sales, 1,021, and we are growing rapidly and this quarter has been struggling for us as the rest of the world, but we have handling very good. I don't think we need to discuss this so much because I've talked about it already. The EBIT margin improvement 124%, like I said, SEK 72.7 million, and last year 2022, 32.4. That's a great improvement. When you're building a global brand and be that customer centric that we actually are, we grew by 95% and EBIT improvement 124%. Yeah, these numbers I've talked about also, so we can skip that one. The supply. I know it's a very struggling time for all of us because the supply is very slow. Actually, we kind of thought about that because we have been in this situation so long time now, so we predicted and we decided to be proactive. We understand that the supply would take longer time, so we are very well prepared to handle the high season this quarter with both Black Week and Christmas sales coming up. I think Team RevolutionRace did an amazing job with the supply because it's hard for us as well, but we have handled it very, very well. For example, for the European customers, we have ramped up the logistics hub in Germany. Before we had over 90% from the Swedish center, but now we have 30%, and we have improved even further to handle the high season of this quarter. That's a major impact for this quarter. We have also handling marketing part and brand building part very well. We have a lot of tools and expertise because the knowledge is in-house of RevolutionRace. Market development, yeah, we are growing still in every region. Rest of the world is growing by 155% and DACH 156% and Sweden and the Nordic countries still growing 53%. As a share of net sales, we have in this quarter 42% for the DACH, 45% for the Nordic countries, and the rest of the world is 14%. As you can see, we are building a healthy company and satisfy customers and growing in every single region. Average order value, I have already discussed it, but I can maybe put some more context. A lot of new products were planned for this quarter, but that actually impact us with the supply. Many new product launches in existing categories in this quarter instead. The product mix has been much better in this quarter than last year, so we are selling a lot of jackets, for example, and the mix, country mix is also contribute in a great way with this increasing average order value. As I see it, I'm very pleased with the financial target for RevolutionRace, and in my opinion, the two billion still stands, but we are delivering a bit better than I expected. With that said, the number is in three years from now, at least SEK 2 billion in net sales and with an EBIT margin of at least 25%. As you can see, we have reached SEK 1 billion in net sales, and we have the EBIT margin of 28.2%, and we are planning to do a dividend. Jesper, do you want to tell them a bit more about the dividend, please? Absolutely. Thank you, Pernilla. We have our AGM upcoming Wednesday this week, and the proposed dividend is SEK 0.64 per share for a payout ratio of 42%. The expected payout date is next week, November 17th, subject to approval at the AGM. Moving over to some of the more financial slides, a lot has been covered already, but as we can see here, rolling 12 months, we're in excess of SEK 1 billion, which is a big milestone for us. For the quarter, we reached net sales of SEK 254 million compared to SEK 131 million year-on-year, which is a growth of 97% or in local currencies, 98%. What are the reasons for this high growth? Well, successful optimization of marketing activities and broadening of the product offering is one of the key contributors. As Pernilla mentioned, we have had some delays in our new product launches, and that has to some extent affected net sales slightly negatively. Moving on to gross profit and margin, well, we see a very strong development also here with 100% growth in gross profit year on year for a rolling 12-month number of SEK 740 million. For the quarter, SEK 184 million, which is a gross margin of a very healthy 72.4%. Pernilla also mentioned that we're experiencing the same issues with the global supply chains as everyone else. We have managed it very well, we believe. We do experience the same cost increase in sea freight, and that will obviously continue impacting us a bit going forward. We have also managed to handle it with some tools. Absolutely, yes. Okay, operational expenses. The left graph shows the personnel expenses and share of net sales. The quarter came in at 5.9% of net sales, which is an increase compared to most of the quarters last year, which was also discussed at the year-end presentation, that we were slightly understaffed, and that we now have achieved a better balance. When it comes to other external expenses, which are marketing, logistics and the likes, we show a very steady level around 38%. The quarter is 38.2%, but we're in a very tight corridor over the last five quarters. Obviously, personnel expenses, there is the seasonal effect of vacation pay effects that has affected the quarter as well. Adjusted EBIT for the rolling 12 months, SEK 292 million, and a margin of 28.2%. Bear in mind here, we talk about adjusted EBIT, but in this quarter, we do not have any items affecting comparability, which means that the adjusted EBIT and the EBIT are the same, but we have historical data that is affected by one-offs. The quarter 28% EBIT margin, a very strong margin, we believe, and for a result of close to SEK 73 million. The balance sheet shows little change from previous quarter, save for net working capital, and I'll get back to that in the next few slides. We can note that we have negative net debt, which means that we have net cash position of around SEK 47 million at the end of the quarter. Moving into net working capital development, we're coming from extremely low levels, as we've discussed in the past. We're now building our inventory very much planned, and that has an effect on net working capital. We're now pretty much at zero. The reason is the inventory buildup, but there is some offsetting by VAT payments and a changed payment schedule on that. Inventory development. Well, due to the very long lead times, we have a lot of inventory or goods in transit. That is roughly half the total inventory. In this quarter? In this quarter. Yeah. At the very end of the quarter. The SEK 112 million goods in transit are arriving as we speak, arrived in October, arriving now in November, which means that we will be very well prepared for the upcoming high season. The inventory buildup, we've discussed it in the past. It is very much planned. We're restocking. We come from extremely low levels, and we're also setting up to, or have set up two fully operational logistics centers, which has affected inventory. It's according to plan, and we have a lot of running assortment, so it's a very low risk to build up the goods. My last slide is on cash flow. We have had a slightly negative cash flow for the quarter, which is due to income taxes being paid and change in working capital. We do remain at a net cash position and a healthy cash position of SEK 282 million at the end of the quarter. That's over and out for me, and back to you, Pernilla. Yeah. To summarize this quarter, amazing job for the team RevolutionRace. I think we show our strengths as operational skills, because we have handled all the situation in front of us in a very good way, and I believe that the internal knowledge shows off the quarter strength in my opinion. 3.7% improvement in EBIT margin from 24.3% to 28.2%, it's a great achievement. At the same time, we are growing rapidly in all regions. We want to grow in existing for next quarter as well, and we want to grow in new. Recently launched in Switzerland, as I told you about, starting off really well, way above our expectation. It all looks good. Also the customer satisfaction is quite high. The only market that we are struggling a bit is about Brexit, as the same as all others. The customers are really, really happy with our brand, but some struggling according to Brexit. We are planning to fix that in the near future, but with that said, we still grow rapidly in U.K. Everything looks very good. We have ramped up both logistics centers. We have a lot of goods in place for the high season, and we have a lot of satisfied customers, and that's our main focus. We are going to have a nice quarter. We started strongly in October, so it all look good. Yeah, that's pretty much it for me as well. Going forward, yeah, I baked that in also, I believe. I want to be efficient so you guys can have some question time also for the Q&A. If we miss something, please ask question. With that, we conclude our presentation and open up to any questions that you may have. Thank you. If you wish to ask a question, please press zero one on your telephone keypad now. If you wish to withdraw your question, you may do so by pressing zero two to cancel. There will be a brief pause while questions are being registered. The first question is coming from Adela Dashian from Handelsbanken. Your line is now open. Yes. Good morning and congratulations on a very strong quarter. My first question is just a clarification on the supply chain disruptions that you're experiencing, because you stated in the report that deliveries have not been affected and that you've increased your inventory, yet the product launches are delayed. Could you please add some color on that and help us understand the discrepancy? Yeah, sure. You're absolutely right. Some of our new product launches are delayed, so, in some way, we are affected. When we said that we are not affected, it's because the new products that are coming in are not affecting the total net sales in the same way that the running assortment, because we are ordering smaller batches of new products. That's what we mean, pretty much. All right. Got it. Onto your expansion into the U.S. You've recently launched your Amazon site, or it was launched a couple of months ago. Is it still very early days for your progression in the U.S.? Or when do you expect the ramp up to begin to gain some solid traction? Yeah. First of all, we need to build up the inventory levels, before we can actually start investing in U.S. more. With that said, everything goes according to plan this quarter, but we have seen stronger result than expected in October. If you want some- Right. Yeah. We are planning to ramp up and invest more in marketing when we have all the goods in place, and it all looks very good there also. Got it. Bear in mind it's still, even if it's a large country, we are always a bit conservative in the start because we are calibrating the offer at that specific market, and we want to have a clear understanding, which product offers on that specific market and, make sure that we have the right inventory in place in U.S. Amazon, before we push the button even further. But we are going to increase. We are planning to build up in Germany. So if you look at Germany year one, that's what we are trying. Mm-hmm. To copy for the U.S. market. Right. Okay. That's understandable. Has your, you know, initial launch been by any means delayed because of the supply chain disruptions that you've experienced throughout the first quarter? Some of the products are delayed in U.S. as well because it's affecting the total situation. As a new market, that's the one that suffers the most because it's more important with the existing. With that said, it's a few products that have been affected. Yeah. Okay. Finally, I mean, you now enter three quarters of very tough comparable figures. How should we think about that? Could you please remind us of the seasonality that you're experiencing throughout the year? Because it's obviously a bit difficult to dissect after the extreme growth that you experienced during the pandemic year. Got it. We have a financial target of at least SEK 2 billion. In my opinion, we are above that both when it come to top line and the EBIT margin. More on the EBIT margin part, and all our regions grow as we are expected or better, and also new markets deliver better than expected. The issue we have now is somehow the supply with new products, because we need the data to predict next orders. In that way, we are affected by the situation, but we are not one of the COVID winners. I have to say we are building a very strong brand and the customer buy us because they like RevolutionRace multifunctional products and we are very good to go for the future and the comparable number. Sure, as I told you in the start, 132%, quarter two, we grew this quarter. Sure, it's tougher number to beat because last quarter was a SEK 130 million in net sales, and this quarter's comparable numbers are the same numbers that we actually had in the Q1, so sure. When we talk about the financial target of RevolutionRace, we are above in both top line and bottom line. Okay. Just a comment on the seasonality that we should bake into our model. Yeah. Actually we are selling a running assortment with a lot of products in the assortment used for everyday use year round. With that said, our quarter that are the strongest are quarter two and quarter four, and that means the quarter we are in now is stronger than Q1, the one we are reporting today. Also the quarter four for RevolutionRace is a bit stronger. It's because of average order value is mostly lower when you are selling like shorts and T-shirt in Q1. Also, January, February, March is not the strongest month of the year. These two quarters are somehow lower, but I believe many other companies have more. We have quite equal quarters, but some effects. Do you want to add something here, Jesper? No, very little. Yeah. Or nothing even. Excellent. Mm. Yeah. Thank you so much. Thank you. The next question comes from Johan Brown at ABG. Your line is now open. Thank you. Hi, Pernilla and Jesper. I hope you can hear me. I'll take my questions one by one. Starting off with you're mentioning that jackets have been affecting both volumes and the gross margin positively here. Is it possible to give some indication about the category growth here and maybe how large a share this category corresponds to as a percent of sales now? We are not deep in that, deep in all percentage of each one of them. But we want to increase jackets because many times the average order value is higher and we also increasing sales in the statement category, and that's the most expensive category for RevolutionRace because it's higher quality or more function. We have high quality on each one of them, but we have more function on the statement category. That is our plan and we are delivering according to plan to reduce the gaps between the jacket category, the pants category, and yeah, base layers and mid layers category. We are delivering according to plan. Great. Thank you. Also continuing on the gross margin, and you're mentioning the positive currency and country mix here where you have a bit higher price points. But just looking like for like in the Nordics, for example, given the circumstances in the supply chain, have you been forced to make any price adjustments, category for category, or is it just, you know, statement grabbing a share, so to say? We care about our customers. We are not willing to let them pay for our situation with the supply. With that said, we follow the inflation, so some price adjustment accordingly to that, but not accordingly, because of the supply chain. Great. Looking at the staffing levels as well, now at a balance of around 100 employees. Assume everything goes according to plan, how many employees are you in 12 months? Oh, that's a tough question. Yeah. We are very efficient in the same way at the same time. We are going to ramp up, but I think we are going to lower the net impact of the staff as a percentage quarter by quarter. Correct me if I'm wrong, Jesper, but this is how we see it. We also want to build a healthy organization that people feel good and can handle all the problems that they are facing day-to-day basis, and that's also equally important to us. We don't just want to take care of the customers, but also the employees. With that said, we are planning to decrease net percentage in some way from the levels we are seeing today. We're likely to see economies of scale in parts of the organization. Other parts is driven by customer interaction. We have a great customer service team, and that is a reflection of the number of- Branding also. Of orders. We have increases in brand, et cetera. We will see economies of scale, but not across the line. Wonderful. A last question from me as well. Looking at this 98% organic growth, did you see any heavy fluctuations during the quarter here in terms of different seasonality effects with the reopening effects and so forth? Or would you say that the seasonality effect here was quite stable? I think it's quite stable. Actually, it started off a warm month of July, but we have a delivery accordingly to plan, month by month, and increasing, delivering, August and September. We are not impacted by the seasonality in the same way as many other companies, and we are not impacted in the same way with the COVID, post-COVID situation either because we are building a strong brand, and the customer demand are still there for our multifunctional products. Great. Thank you very much. Those were all of my questions. Thank you. The next one comes from Daniel Ovin at Nordea. Your line is now open. Yes. Good morning, Pernilla and Jesper, and congratulations on a well-executed quarter. First, I have a few questions around the supply constraint and the impact on sales and also on transportation cost and impact on the margin. You mentioned that both those factors were at play in Q1, and wonder if you could give some detail on the level, and if not, perhaps you can put that into relation on what you expect for Q2, i.e., do you expect more or less of an impact from these factors in Q2 versus Q1? That's the first question. Mm-hmm. Well, transportation, I mean, we read the same papers as everyone else. We can note a significant increase in sea freight freight pricing. We believe it's around 200% increase if we compare a container now versus a year ago. Obviously, the impact of transportation cost in goods for resale will follow through when we receive the shipments, which we are doing very much now in Q2. Last quarter, this quarter also. Yeah. Yeah. We have a lot of tools in our toolbox. There are operational secrets how we handle the situation, but we have used some tools to handle the situation when it comes to price also. We have increased price like everybody else, but we have some tools to handle that also. There is obviously an effect coming, but bear in mind what kind of products we transport from Asia to Europe. It's small volume and low weight. There will be effects, but more. At the same time last year, we had to handle a low stock level. If you compare to last year, I don't believe it's going to increase cost of goods sales that much. Would you think about using air freight, for example? Could that be a factor that increase the transportation cost significantly, perhaps in Q2? Do you see the need for that? Last year we needed that, but this year we not expect to need that as much as last year. We use air freight when we really have to, but we very much want to avoid it for obvious reasons. Yeah, easy reason. We are better set now with all the goods in place. We are not planning to increase flight orders to handle this quarter that much. It's much less of a percentage than last year. Okay, great. Thank you. When it comes to supply constraints, you also mentioned that it has impacted you in Q1 and also to some extent the beginning of Q2. On a sales level, is there any noticeable impact, you would say, on a sales level, or is it more on the newer category that those has not come in yet? Or would you say that there is a noticeable impact on sales? Yeah, it's very hard to measure because maybe you sell the never out of stock goods instead. It's a very tough question to answer correctly. Yes, some impact in the quarter Q1. We are seeing a lot of new product launches this quarter. We have been impacted that the backpack is moved to Q3 instead of Q2. As I said before, it doesn't impact the net sales that much because of the volume of the placed order on new products. Okay, perfect. Just a question on the gross margin here, because I read here that it was positively then impacted by geographic mix, but you also mentioned FX here. I just wonder if you could say something about the relative size of those two. I mean, is it mainly the mix or is it mainly the FX perhaps, if you can give any information on that? I think one thing we have started to do really well with within RevolutionRace is we are looking a lot about GP Pro in the product mix. That is helping us keeping up the gross margin. When we you can go more into details when it comes to how much impact. Yeah. Bear in mind, gross margin is a consequence of a number of factors. We do our purchasing in U.S. dollars, which is a key contributor, obviously. We have slightly different pricing strategies in our markets, and we have obviously unique product gross margins. All those combined takes us to the 72.4%, but it's extremely difficult to pinpoint the one factor out of those. The weakening of the dollar versus the SEK has had a good impact for us. When it comes to cost of goods sold, but at the same time, we lost sales here 3% because we are selling so much outside. Maybe it's cost of goods sold going up when a dollar increase comparing to SEK, but at the same time, the net sales, you should expect increase when that happens also. Okay, great. Maybe one more question, if I may, and that's on the German logistics hubs. If I read it correctly, you have already 30% of goods handling through that hub. I wonder this means, I guess, getting close to the customer, shorter lead times, et cetera. Does that also have any noticeable impact on the margin, or is it more that it's a better customer experience that you get your goods faster? I think it's better customer experience and better for the environmental part, ESG. We are not expecting reduced prices for the moment, but not increased either. Okay, perfect. That's all my questions. Thank you very much. The next question is coming from Carl Deijenberg at Carnegie. Your line is now open. Thank you very much, good morning, Pernilla and Jesper. First, a question here on the U.K. Could you elaborate a bit on the Brexit disturbances that you're seeing or mentioning, Pernilla? Is that mainly related to constraints of moving inventory into the country? Or are there any other sort of external factors that we should be aware of here? No, actually, lead time to U.K. is good for the customer, and the experience there is very good. At the same time, the Brexit situation, the customer are not used to the situation either with the handling when you're making returns. It's the returns part that we are struggling the most with, but we are not struggling more than other companies when it comes to that. That is something we need to fix to have higher customer experience. They are very into a RevolutionRace, and the sales are quite good still in that country. We are not slowing down, but we are not pushing it further because we need to solve that specific problem, and we are soon solving it. It's weeks from now that we are going to handle the situation better. Okay. Very well. A follow-up question on that. I mean, very strong growth here in all your geographical regions, rest of world here, now around 13% of sales here in the quarter. Could you say anything, share with us sort of how large is the U.K. in the rest of world market? Would that be possible to sort of give an indication there? It's the biggest market in the rest of world category, and it's growing really well. We want it to become the new Germany, obviously. It all looks good there. It's only the specific part with the returns part. Otherwise, it's looking very good. Many other countries that contribute now, Switzerland is starting off really well and a lot of other mid-size countries. If we can start to invest more money in the marketing part, because for every single krona that we invest in that specific market, we're getting more kronas back, and that helps us build up the rest of the world category. Region. Okay. Very well. Sorry. That's very clear. Perfect. Now I have a question to you, Jesper, and maybe you mentioned it earlier. I came in a bit late here. Could you remind us a bit on the discrepancy here in the paid tax and the cash flows and the reported tax in the P&L. Sort of the reason for the discrepancy here in the quarter and what to expect there going forward? Well, let's put it this way. We concluded our financial year at end of June, and post that you make, to be honest, I don't know what the English word is for it, but you make the tax payment to satisfy the difference between your preliminary tax payments and your final tax payment, and that payment was made in Q1. Okay. It sounds going forward, the discrepancy is going to be more marginal than it sounds like. Yes. This is maybe more seasonality related. A-absolutely. Yeah. Okay. Okay. It is- Okay. Done. It is seasonality related due to our financial year looking a bit different from other companies. Yeah, understood. Then my final question here on new markets. You launched in Switzerland here recently and seem to be off to a very good start. I'm just curious, do you have any more sort of countries that you have in the pipeline without sort of mention them in specific? Should we expect of further geographical expansion here in the near term within this year? Are there any more sort of European countries that you're not local in today that you're planning to launch in? Not for the moment. We need to focus on the existing ones for now, but we are telling that we are planning to do 2-4, and we have done U.S. and Switzerland so far. We are going to focus on the existing one with these two great add-ons. We have a lot to adjust and focus on for now. We are planning European later in maybe Q4 or something. Okay, very well. Thank you very much, Pernilla, Jesper that was all my questions. Thank you. Do we have any remaining questions? Otherwise, we're. Yeah, I wanted to. There are no more questions at the moment. No, I just want to end. Thank you all for listening. RevolutionRace is revolutionized outdoor industry. For now we are the underdog, but we are planning to become the top dog. We also want to send a message to you. Last quarter, I told you about a rookie that didn't deliver rookie numbers. Now I want to tell you that we are aiming to become Rookie of the Year. Thank you. Thank you, everyone.