Slide 1: Pricer AB (publ) Second quarter 2020
Pricer AB (publ) Second quarter 2020 Helena Holmgren President & CEO Stockholm, July 21, 2020
Slide 2: Q2 2020; High Order Intake - Increased Demand
Q2 2020; High Order Intake - Increased Demand Order intake Net sales Operating profit Operating margin 324 288 3.5 1.2 SEK M SEK M SEK M % (230) (271) (34.1) (12.6) COVID-19: Delayed sales, negative effect on gross margin and result 2 ©2019 Pricer
Slide 3: Jan-Jun 2020; Order Backlog 903 MSEK per June 30, 2020
Jan-Jun 2020; Order Backlog 903 MSEK per June 30, 2020 Order intake Net sales Operating profit Operating margin 695 514 10.8 2.1 SEK M SEK M SEK M % (438) (533) (51.6) (9.7) 3 ©2019 Pricer
Slide 4: High Activity on Several Geographical Markets
High Activity on Several Geographical Markets • Order intake of SEK 324 M for Q2 2020, an increase of 41% YoY. • Order intake includes two large orders in the quarter: • PLUS Retail, The Netherlands, SEK 100 M • Carrefour, France, SEK 50 M • Order backlog of SEK 903 M per June 30, of which the major
Slide 5: Tough Start in the Quarter – Strong Recovery in June
Tough Start in the Quarter – Strong Recovery in June • Net sales of SEK 288 M (271), an increase of 6% YoY. • Tough start in the second quarter due to COVID-19, primarily within small- and medium sized customer projects. Strong recovery in June, but some delay in net sales to Q3. • High order backlo
Slide 6: Change in Product and Contract Mix impacts the Gross Margin negatively
Change in Product and Contract Mix impacts the Gross Margin negatively • Gross margin has been negatively impacted by multiple factors in the quarter: • Product mix; high proportion of large labels and low proportion of services sales. • Contract mix; majority of deliveries consisted of large custom
Slide 7: Temporary loss of profitability mainly due to COVID-19 effects and unfavorable currency movements
Temporary loss of profitability mainly due to COVID-19 effects and unfavorable currency movements Tough comparison to second quarter 2019 due to: • Change in product- and contract mix impacting the gross margin. • Reversed currency impact; positive impact in 2019 - negative impact in 2020. • Increas
Slide 8: Positive Cash Flow; Increased Capital Tie-up Expected
Positive Cash Flow; Increased Capital Tie-up Expected in line with Ramp-up of Production and Delivery Activities • Positive cash flow from operating activities of SEK 21.3 M. • Increased capital tie-up related to the large order backlog is expected going forward. The cash flow should be viewed over
Slide 9: Summary
Summary • COVID-19 impacted sales and profitability negatively, mainly in April and May, with strong recovery in June. • Profitability in the quarter was disappointing, several factors impacted negatively. • Large customer projects in the USA and the Netherlands have progressed according to plan, de
Slide 10: Pricer's customer offering
Pricer’s customer offering • We provide a digital communication system for the physical retail trade. • We provide the market’s fastest, most stable, scalable and energy- efficient ESL system that improves the efficiency of several resource intense in-store processes, such as • price updates, • in-s
Slide 11: Why Invest in Pricer?
Why Invest in Pricer? • Strong underlying market growth; digitalization of physical retail considered necessary for maintaining competitiveness. • Best system on market → Unique and hard to copy technical solution; based on reliable, scalable, energy-efficient and interference-free communication. •
Slide 12: PRICER
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