Slide 1: Q4 Result Presentation
Q4 RESULT PRESENTATION 20 February 2025
Slide 2: Agenda
AGENDA Q4 highlights Business update Financial update Q4 Summary Q&A 2
Slide 3: Q4 Highlights: Lower sales but improved profitability
Q4 HIGHLIGHTS Lower sales but improved profitability • Net sales decreased by 8.6% to SEK 268.8 million • Decrease due to low purchasing power in markets outside the Nordics • Adjusted EBITA margin rose to 20.1% (12.8%), amounting to SEK 54.1 million (37.7) • Favourable product mix • Cost ratio for
Slide 4: Q4 Highlights: Improved cash position
Q4 HIGHLIGHTS Improved cash position • Operating cash flow improved, from SEK 29.6 million in Q4 2023 to SEK 48.4 million in Q4 2024 • Tax paid amounted to positive SEK 13.4 (5.9) million and refers to repayments of preliminary tax for 2024 • Inventory increased by SEK 10.2 million • Changes in curr
Slide 5: Q4 Highlights: Restructuring of bonds and capital structure
Q4 HIGHLIGHTS On 24 December, Desenio Group entered into a term sheet for the restructuring of its bonds and capital structure • Debt-for-equity swap implying 75% write-down of the bonds and 95% dilution of the shareholders • Written procedure to request existing bondholders approval of the restruct
Slide 6: In Summary Q4 2024
IN SUMMARY Q4 2024 -8.6% 87.0% 20.1% 48.1 MSEK 269 MSEK (84.2%) (12.8%) (29.6) NET SALES GROSS MARGIN Adj. EBITA OPERATIONAL CASH FLOW 6
Slide 7: EBITA margin bridge
EBITA margin bridge 25 20 15 10 5 0 7
Slide 8: Agenda
AGENDA Q4 highlights Business update Financial update Q4 Summary Q&A 8
Slide 9: Sales stronger than overall market search trends
SALES STRONGER THAN OVERALL MARKET SEARCH TRENDS DE GROUP* PERFORMANCE UK GROUP* PERFORMANCE 9
Slide 10: Search share of voice positive in DE and negative in the UK
0% 10% 20% 30% 40% 50% 60% 80% 90% 100% 70% 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11 2020-01 2020-03 2020-05 2020-07 2020-09 2020-11 2021-01 Desenio Group 2021-03 2021-05 2021-07 2021-09 Juniqe 2021-11 2022-01 2022-03 2022-05 2022-07 Posterlounge 2022-09 2022-11 2023-01 DE BRAND SEARCH SHARE
Slide 11: Search share of voice Sweden stable since end of 2021
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11 2020-01 2020-03 2020-05 2020-07 2020-09 2020-11 2021-01 Desenio Group 2021-03 2021-05 2021-07 2021-09 Gallerix 2021-11 2022-01 2022-03 2022-05 2022-07 Posterlounge 2022-09 2022-11 2023-01 SE BRAND SEARCH SHAR
Slide 12: Search share of voice increasing in the US
0% 10% 30% 40% 50% 60% 70% 80% 90% 100% 20% 2019-01 2019-03 2019-05 2019-07 2019-09 2019-11 2020-01 2020-03 2020-05 2020-07 Desenio 2020-09 2020-11 2021-01 Postery 2021-03 2021-05 2021-07 2021-09 2021-11 2022-01 Fineartamerica 2022-03 2022-05 2022-07 2022-09 Allposters 2022-11 2023-01 US BRAND SEARC
Slide 13: 2024 Gross Order Intake
2024 GROSS ORDER INTAKE 250 DESENIO GROUP GROSS ORDER INTAKE* Q4 200 150 100 50 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022 2023 2024 13
Slide 14: Q4 YoY growth per segment
Q4 YOY GROWTH PER SEGMENT NET SALES PER SEGMENT (SEKm) 14
Slide 15: Customer Highlights
CUSTOMER HIGHLIGHTS ACTIVE CUSTOMERS* (thousands) ORDERS (thousands) 15
Slide 16: Agenda
AGENDA Q4 highlights Business update Financial update Q4 Summary Q&A 16
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS NET SALES (SEK million) GROSS MARGIN Adj. EBITA (SEK million) 17
Slide 18: Cash Flow Highlights
CASH FLOW HIGHLIGHTS CAPEX* (SEK million) NET WORKING CAPITAL (SEK million) OPERATIONAL CASH FLOW (SEK million) 60 50 3.0 40 30 20 10 0 -2.0 18
Slide 19: Operating Cash Flow Break Down
OPERATING CASH FLOW BREAK DOWN Q4 2024 (SEKm) 19
Slide 20: New Capital Structure
NEW CAPITAL STRUCTURE Legal structure and financing New maturity profile Following the restructuring SEKm up to 1/3 of the shares will New shareholder structure be listed 1 100 Original maturity 16 Dec Bonds converted Bonds converted Existing 2024. to Private Shares to Listed Shares shareholders >70
Slide 21: Reduction of Interest Cost
REDUCTION OF INTEREST COST Interest expense overview 2024 pro-forma cash flow SEKm SEKm SEK 69m reduction 133 7.75% fixed rate 12.50% fixed rate Desenio has a cash 103 - 8.75% cash conversion of >95% 107 - 3.75% PIK and expects a similar or higher cash build 12 for the coming year 22 73 34 1 2 3 202
Slide 22: Agenda
AGENDA Q4 highlights Business update Financial update Q4 Summary Q&A 22
Slide 23: Q4 2024 Summary
Q4 2024 SUMMARY • Increasing operational efficiency and lower cost base • Adjusted EBITA margin almost doubled in weak market • Strong operating cash flow • Still a tough market with weak consumer purchasing power • Agreed term sheet for the restructuring of Desenio Group’s bonds and capital structu
Slide 24: Desenio Group
DESENIO GROUP . _