BHG Group Stock

Good morning, everyone, and thank you for joining us today. I'm joined by our CFO, Jesper Flemme. I will walk you through the operational highlights and our strategic progress before Jesper covers the financials in more detail. I will come back to summarize, and then we will do our very best to answer your questions.

Slide 2, please. Q2 highlights. The second quarter was another step forward for BHG. We delivered accelerating organic growth, continued to see improving profitability and generated strong cash flow, while at the same time, continuing to execute on the strategic priorities we communicated on our Capital Markets Day. The quarter was characterized by three main themes.

First, our operational performance continued to improve. Organic growth accelerated to almost 10% and adjusted EBIT improved for the 11th consecutive quarter. Second, we continue to execute our strategy. We further increased our share of unique assortment, accelerated our AI initiatives and completed the first acquisition in a long time with the acquisition of Hillerstorp. And finally, we continue to see encouraging market developments. Demand improved across most of our key markets and categories, supported by stronger consumer purchasing power. Overall, we believe the quarter demonstrates that our strategy is working.

Slide 3, please. Summarizing the key numbers. The most important takeaway is that sales growth accelerated and came in at plus SEK 3 billion in the quarter, representing an organic growth of 9.6%. This being a significant growth acceleration compared to the first quarter, and we can also happily conclude that we have continued growth in all 3 business units. Adjusted EBIT in the second quarter was SEK 134 million, a growth of SEK 60 million compared to last year, an improvement in profit, in both absolute numbers and EBIT margin, but somewhat negatively affected by an unfavorable product mix in the Home Improvement business unit. Operating cash flow of plus SEK 338 million is a strong cash flow and in line with the seasonal pattern. Leverage continued to decline to just above 2x EBITDA, giving us increased financial flexibility.

Slide 4, please. Growth. We are very pleased to see that the accelerated growth that we saw at the end of the first quarter continued and accelerated during the important second quarter. The strongest contribution came from our Garden category, including Robotic Lawnmowers in combination with Furniture and Home Decoration also developing well. Importantly, growth was broad-based across our businesses with all major markets contributing positively. We continue to see strong momentum across the Nordic region, Germany and Eastern Europe. We saw growth in Finland also in this quarter, but we unchanged see Finland as the most challenging of our key markets. The improving macro environment is clearly helping, but our performance is primarily driven by our own execution, a stronger assortment and improved customer offering. Overall, we remain unchanged, positive regarding demand and market development going forward. We also expect the online market to grow faster than offline in our categories. Increased online penetration even further fueled by the current AI development, making the online shopping experience clearly surpassing the offline experience.

Slide 5, please. Profitability. We are proud to highlight that BHG has now delivered improvements in adjusted EBIT margin, both in absolute numbers and in EBIT margin over the last 11 consecutive quarters. That demonstrates that the operational improvements we have implemented over the past few years continue to deliver results. That said, profitability in the quarter was somewhat below our own ambitions. The primary reason was an unfavorable product mix, where we saw strong growth in Gardening Equipment, partly driven by Robotic Lawnmowers, a category with lower gross margins that has in the quarter diluted the total gross margin level. We unchanged, see gross margins in branded goods as a challenging area, but the gross margin effect on Home Improvement that we saw in this quarter, we see primarily as a temporary mix effect rather than a structural issue. Our long-term strategy remains unchanged, and we continue to focus our efforts on strategic initiatives to support gross margins as unique assortment and additional revenue streams. This, in combination with our focus on efficiency and cost structure.

Slide 6, please, strategic priorities. As mentioned, our strategic priorities remain the same as we communicated on our Capital Markets Day. First, we continue to increase our share of unique assortments. This strengthens differentiation while also improving our long-term margin potential. Second, AI is becoming an increasingly important tool to create competitive advantage, both for customer experience, thereby driving growth and creating efficiencies. During the quarter, we accelerated our AI initiatives together with our strategic partner, Algorithma, within key [ areas as ] improving customer service, quality, speed and efficiency, streamlining product upload and securing data quality, decision support and product information and customer guidance, helping customers find, understand and choose the right products easier and faster. We continue to execute on our strategy of build and trial and then to scale the solutions across the group where we see real measurable business value. And thirdly, we focus on executing our disciplined M&A strategy. The acquisition of Hillerstorp is an excellent example of the type of acquisitions we want to make, strengthening existing platforms with limited financial risk.

Slide 7, please. A few words on the Hillerstorp

acquisition. Hillerstorp fits extremely well into our long-term strategy. It strengthened one of our largest and most attractive product categories while adding a highly respected Swedish brand with a strong market position. The acquisition is product-focused, expands our offering, increases our share of unique assortment and creates attractive opportunities for cross-selling across several of our platforms.

Equally important, it is an asset-based low-risk bolt-on acquisition in line with the disciplined M&A framework we presented at our Capital Markets Day. We continue to evaluate similar opportunities that strengthen our existing platforms while maintaining strict financial discipline.

Slide 8, please. Let me conclude this section before I hand it over to Jesper with what is perhaps the most important message. While we cannot influence interest rates, consumer confidence or the broader macro environment, we can control how well we execute our business every single day. Our focus remains on supporting our business in being the best online retailers in our categories and markets, building the best online customer experience through the right assortment, competitive prices, the best and most relevant offering and efficient operations. The improvements we have delivered over the last several quarters are not driven by one-off actions, but by consistently executing on these fundamentals. We believe that continued operational excellence, combined with our strategic initiatives in unique assortment, AI and disciplined M&A will take us to the goal that remains unchanged and clear, to grow faster than the market while improving profitability.

And with that, I will hand it over to Jesper, who will take you through the financial performance in more detail.

Thank you, Gustaf, and please turn to Slide 9. As Gustaf already mentioned, we delivered another strong quarter with organic growth of almost 10%. Net sales increased by 10.2% to more than SEK 3 billion, while organic growth amounted to 9.6%.

Looking at our segments, what stands out this quarter is the broad-based growth across the group compared to the first quarter. Organic growth accelerated in all 3 business areas. From a geographic perspective, all of our major markets delivered growth during the quarter. The sales trend in the Nordic region remained favorable, mainly driven by Sweden and Norway. Outside the Nordics, sales growth in Germany and Eastern Europe was particularly strong.

Turning now to Slide 10 and profitability. Adjusted EBIT increased by SEK 16 million compared to last year, reaching SEK 134 million. This corresponds to an adjusted EBIT margin of 4.4%. We're pleased with the profitability improvement in Premium Living and in Value Home with both the improvement and the profitability level. In Home Improvement, profitability also improved year-over-year. However, margin development was impacted by category mix effect, which I will come back to on the next slide.

Moving on to Slide 11 and the EBIT bridge. The EBIT margin improved by 0.1 percentage points compared to last year, reaching 4.4%. Looking at the bridge, the main negative impact came from product margin, primarily within Home Improvement. As mentioned, this was driven by category mix effects. Garden, which has structurally lower margins, grew strongly during the quarter, while Bathroom, which has structurally higher margins was impacted by tough comparables. Marketing also had a negative impact compared to last year, reflecting the uneven demand across categories, mainly within Home Improvement, where this reduced marketing efficiency. At the same time, the other cost areas developed positively, most notably, organizational costs improved, reflecting continued cost discipline on operating leverage. Overall, the positive development across the cost base largely offset the pressure from product margin and marketing, resulting in a slightly higher adjusted EBIT margin year-over-year.

Moving on to Slide 12 and cash flow. Cash flow from operating activities amounted to SEK 339 million during the quarter. The strong cash flow was driven by EBITDA together with a positive contribution from working capital. Compared to last year, accounts payable developed somewhat stronger than the inventory as we deliberately maintain higher inventory levels to support the strong growth in the Garden category. Turning to the graph on the right. Liquidity increased from SEK 301 million at the beginning of the year to SEK 565 million at the end of the quarter, supported by the strong operating cash flow.

Slide 13, please. Turning to our financial position. Net debt amounts to SEK 935 million at the end of the quarter, and net debt in relation to LTM adjusted EBITDA improved to 2.0x compared with 3.0x at the same point last year. In addition, we had SEK 800 million in unutilized credit facilities at the end of the quarter.

With that, I will hand back to you, Gustaf to summarize and conclude.

Thank you very much, Jesper. Slide 14, please.

Let me conclude this with three key messages. First, our business continued to move in the right direction. We delivered our seventh consecutive quarter of organic growth and our 11th consecutive quarter of year-over-year profitability improvement. While we are not yet satisfied with our profitability level, the consistent progress over several quarters gives us confidence that our strategy is working. Second, we continue to execute on the strategic priorities that we have communicated to the market. During the quarter, we further expanded our unique assortment. We accelerated our use of AI across the businesses and completed the acquisition of Hillerstorp. These initiatives are all aimed at strengthening our competitive position and improving our long-term earnings potential in line with our financial targets.

And finally, we remain firmly focused on operational execution and becoming the best online retailer in our markets and categories. As we have said before, we cannot control the macroeconomic environment, but we can control how well we serve our customers, how efficiently we operate and how disciplined we are in allocating capital. Those are the areas where we continue to improve every quarter. Overall, we believe BHG is entering the second half of the year from a position of increasing strength. Our balance sheet is stronger, growth has accelerated and the strategic initiatives we have invested in are beginning to deliver tangible results. While market conditions remain competitive, we are confident that our strategy, our market position and the capabilities we have built over the past few years provide a solid foundation for continued profitable growth and long-term shareholder value.

Thank you very much for listening, and now happy to do our very best to answer your questions. Please.

The next question comes from Alice Beer from ABG Sundal Collier.

So Alice Beer calling in for Benjamin today from ABG. Firstly, I was wondering if you could quantify the gross margin impact from mix, please, related to the gross margin? And then also, what was the positive FX impact, if any?

I'll start with the gross margin, and I'll hand the currency over to Jesper. We haven't tried quantifying the exact effect on the mix. As we have said, it comes primarily in Home Improvement, and it comes primarily from the difference in sales between Garden and Bathroom where Garden is a high-margin -- sorry, a low-margin category. And this quarter also primarily driven by a very large sale of Robotic Lawnmowers, which is a low gross margin category. And there we had very strong sales. For Bathroom, which is a high-margin category with quite a high share of own brands, where we had a lower share of sales this quarter. So that's where it comes -- so that's where the difference comes from and the mix effect comes from, but we haven't quantified it.

And when it comes to currency, I think the effect is to be seen in the Value Home segment where we reported quite strong margins. I won't be able to quantify. But as I said, the effect is to be seen in the Value Home segment.

Okay. Moving on then your other external cost line stands-out as well as rather high, growing 18%. Could you explain this move as well, please? Is it AI tools or something else?

If you're looking in the P&L, you know that, that line includes also marketing that -- that grows in line with sales. So that explains most of the increase. If you instead look at the personnel costs, they only increased by SEK 3.6 million or 1.6% year-over-year.

I think we can add that we're very happy with our cost control when it comes to fixed costs.

[Operator Instructions] The next question comes from Daniel Schmidt from Danske Bank.

A couple of questions. And coming back to the gross margin, and I think you've been quite clear when it comes to the mix that you experienced in the quarter. But it's hard to get away from the fact that what you see the same mix in the coming quarters as well, especially on Bathroom being quite strong likely in the second half last year on the back of the hiked renovation deduction in the Swedish market?

I mean we had a strong Bathroom category development last year. That is definitely the case. But we're also quite positive looking forward into Q3 and Q4 because we have -- I think we have a very strong assortment. We have a high level of owned brands in the category. So we're still unchanged positive of how we can develop the Bathroom category. And I think the other main driver, Robotic Lawnmowers is a category that drops significantly now moving into Q3 and Q4. So the difference should be significantly lower than what we saw in Q2.

Yes. Okay. That makes sense. But if you add the U.S. dollar and freight to that, would you start to see the positive effects of the weak U.S. dollar fading in H2? And then on top of that, freight costs have gone up quite a bit. And I know there's quite a lead time, but still, how do you view those two components, if you add those to the equation?

I think you -- I mean, the direction you're speaking of is definitely the right one. The timing is hard to predict, as most of the products being sold in the Value Home segment has already been shipped or already in our inventory. So the direction is right. Timing is really, really hard to predict.

And I think we can say on freight prices, if [indiscernible] expand on that, that we have seen increases on freight prices, that is correct. And if you look percentage-wise, they're quite high increases. But be mindful that we came from very low levels, and we still view the levels of freight prices as quite reasonable.

But I'm sort of getting at, you're doing quite well now continuously on top line, and you've done quite a big journey when it comes to the cost footprint in terms of platforms and selling off businesses, trying to focus on where you're strong basically, which has worked out well, but it seems like you're flatlining a bit more now. Is there any other sort of cost measures that you want to take in the second half of this year if you don't see the gross margin turning?

I mean we're doing cost discipline all the time. And I think some of the AI initiatives we're currently implementing, we have seen the first effects on efficiency and cost reductions from them, primarily, I would say, in customer service, to some extent, but also in product upload. And I think it's also important to be mindful that we have delivered 11 consecutive quarters of profit improvement, even if the improvement was lower in Q2 that we in Q1 actually doubled our profit levels. So we are still happy that we are continuing this direction of improving our profit for such a long time, and we're confident in our plan to continue doing so.

Yes. All right. And then maybe on to more detailed questions. Hillerstorp acquisition, you haven't really given us any financial data on it. You can look it up yourself, and it looks like they had a top line of SEK 75 million, but they are quite heavily loss-making. Is that the case when you consolidate Hillerstorp?

No. As it's an asset acquisition, we only acquired the brand and the inventory. And then, of course, our ambition is to keep as much of the sales as possible, but we won't have any losses.

And it's important that we're transferring this business model, their business model of being primarily a B2B business into becoming a private label business. So what we're basically doing is acquiring an asset with a very strong brand name in a category where we have a big -- very big sales volume and where we have several platforms where we can sell this product. And based on that, we think we can deliver a high profitability from the brand in this category.

I got you. Is it going to be a fairly small add-on on top line? I don't know how much of their sales went through your platforms before this acquisition and you're also then shifting in terms of the channel that you want to approach. So what should we sort of pencil-in basically in terms of top line? Is that -- I don't know. Can you give us any guidance?

So for '26, I wouldn't add anything, to be honest, the season is over. And then for '27, we're talking a small amount. We have limited possibilities to really, really work with the assortment for next season. So it's really a long-term investment that we believe in an important category for us and strategically important, both in our ambition to grow our gross margin, but also in our ambition to differentiate our assortment and having a larger share of unique assortment.

Yes. And then just lastly for Jesper, maybe, the earn-out that you were supposed to pay now, is that going to come in Q3 instead? Or did I miss anything?

No, the updated numbers is that we will pay another SEK 30 million, 3-0 this year. And then next year, the best guess is that we will pay somewhere between SEK 50 million and SEK 60 million, and what's left will be equally split between '28 and '29.

And how much did you pay in Q2? I may have missed that.

SEK 20 million.

Okay. So that number came down quite a bit for this year compared to the latest guidance then?

Exactly. And that has to do with not only trying to assess the amount, but also timing of when put and call options are being exercised.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

We have one written question. Could you please elaborate a bit on unique assortment and how that looks like in the 3 different business units? And also if you have a target when it comes to the share of sales from unique assortment.

As we have communicated, it's a core strategic initiative for us to grow our share of sales in unique assortment. We have very different levels today. In Home Improvement, the level is roughly 20%, if I recall right. In Value Home, which is where this is part of the business model, we're talking a share of sales in excess, I think, of 85%, while in Premium Living, we are somewhere in the region of just about 5%. So the potential for increasing the share of private label is primarily within Home Improvement and Premium Living. I think we're currently doing a really good job in Home Improvement, where we sort of with the vehicle of Hafa are selling brands as Bathlife and Hafa, as you mentioned, over the platforms of Bygghemma, et cetera. And that is working really, really well.

So I think one of our strongest vehicles, as you're pointing-out, for growing the sort of share of unique assortment is using intercompany sales, basically selling the products we have developed ourselves over more platforms. And we are currently doing that. And as I said, it's working really, really well in Home Improvement. It's a little bit more tricky in Premium Living because premium, as it says, is more of a premium platform. There is brands that we can sell or we can pick up the sales there as well. We are doing so, but the share is still very small. But some of the restrictions when it comes to target audience makes that potential somewhat lower than in Home Improvement. So in Premium Living, the main focus is to continue to develop the existing brands, one of them being Scandi Living, as you mentioned, and they're actually doing a really good job with Scandi Living. And the share of unique assortment also in Premium Living is increasing, but not so much from intercompany sales, more from developing the assortment of our own brands. Any further questions?

That was it. No more questions.

Good. Then I say thank you very much for listening in, and I wish you all a very good summer. Thank you.

Welcome, and good morning. My name is Gustaf Ohrn, CEO of BHG, and thank you for joining our Q1 earnings call. With me today is our CFO, Jesper Flemme. I'll begin with an overview of the quarter, followed by Jesper, who will take us through the financials in more detail. I will summarize the report, and then we will open up for questions.

Next slide, please. Let me start with the key takeaways. We have in the first quarter of the year delivered a strong improvement in profitability while continuing to grow and significantly reduce leverage. Adjusted EBIT year-on-year more than doubled in the quarter, driven by improved gross margins, disciplined cost control and continued organic growth, a clear indication that our strategy and focus on operational execution is driving tangible results. The profit improvement, in combination with a strong cash flow, enabled us to end the quarter with a significantly lower leverage than last year.

Next slide, please. Financial performance and looking at the key numbers. Net sales amounted to SEK 2.246 billion, corresponding to a plus 4% organic growth in the quarter. Adjusted EBIT reached SEK 44 million, a doubling of profit and a significant improvement versus last year. Cash flow from operations was minus SEK 50 million in the quarter. This follows the normal seasonal pattern for BHG with a negative cash flow in the first quarter from the inventory buildup for the larger second quarter. Cash flow improved by more than SEK 50 million year-on-year, and this is to be regarded as a very strong cash flow for the quarter.

One of the key highlights in this quarter is the improvement in gross margin, where the team has done a great job. In an unchanged price challenging market, our focus on price matching and unique assortment has driven the improvement in gross margin. We are happy to conclude that we're not only growing, we are doing so with increased profitability and strong cash flow.

Next slide, please. Commenting on sales development. This quarter had two different phases: a somewhat slower start in January and February, impacted by ROT deductions in the Swedish market and the unusually cold weather in February that had a dampening effect on demand; then finishing the quarter with a strong sales momentum in March driven by a strong start of the spring and summer assortment, enabled by a strong offering on outdoor furniture and garden products.

To us, this reinforces two things: seasonality remains important, but demand is there when the conditions normalize. In summary, a somewhat challenging quarter on top line, but where we exited the quarter with good sales momentum, giving us strong confidence going into the second quarter.

Next slide, please. A few words about our view of the market outlook. We, unchanged, have a positive outlook for the market development and expect the market to continue to improve, primarily driven by improvement in disposable income. We, unchanged, also expect the online market to grow faster than off-line in our categories, a shift further fueled by the current AI developments, making online shopping experience in areas as product information clearly surpassing the off-line experience.

Our assessment is that the current geopolitical disturbances has so far had limited effect on consumer sentiment. We have, as everybody, seen some smaller effects on certain commodity prices and on transportation, but the effects are still fairly limited. We monitor the situation closely and the limited effects we have seen so far can, of course, change in both directions depending on how the situation develops.

Next slide, please. Operational focus. In the current market environment, where recovery is gradual and consumer sentiment can shift rapidly, our approach remains consistent, a high operational focus and sharp attention to what we can control: being excellent retailers, staying close to the consumer, offering the right assortment at competitive prices, strong campaigns and customer offering and a positive experience all through the customer journey. This operational discipline and execution quality is central to drive sales and continue to improve our margins and to strengthen resilience for challenging times.

Next slide, please. Strategic overview. As we communicated on our Capital Markets Day, our growth strategy has three layers: one, operational excellence, the daily grind of being a retailer, as mentioned on the last slide, working assortment, offering, customer experience, et cetera, but also category, geo and customer segment expansion; two, strategic initiatives, securing competitive advantage and innovation currently with a key focus on unique assortment, cost structure as a strategic advantage, new revenue streams and data and AI; three, M&A, proactive, disciplined bolt-on acquisitions.

This, built on the two external layers of structural market growth where we, as mentioned, assess we are back in growth mode and increasing online penetration, further driven by AI improvements in the customer journey online. The goal remains unchanged and clear: to grow faster than the market while improving profitability.

Next slide, please. In the quarter, we continued to execute our strategy and made good progress in areas as product range development with strong development in entry-level indoor and outdoor furniture and continued range expansion on the new generation of wire-free robotic lawnmowers, improved customer satisfaction, increased share of unique assortment, crucial to support our margin expansion, and the introduction of new AI agents to drive both growth and efficiency.

Next slide, please. AI is a key focus for us, and let me take a short deep dive on some of our current key AI initiatives and AI agents. We are currently actively building and, from group co-funding, AI initiatives with focus on areas as improving customer service, both quality, speed and efficiency, streaming upload and securing data quality in product content, efficiency in decision support and growth initiatives in product information, helping customers find, understand and choose the right products both easier and faster.

We utilize the advantage of being a group and using best practices to scale the best-performing initiatives. We do this through our model, which we call build, pilot and scale, where what works, we scale across our businesses. Over time, we are confident that AI-driven initiatives will be an important contributor to customer experience, growth as well as efficiency.

Next slide, please. At our Capital Markets Day, we presented the next phase of BHG's strategic plan. In conjunction with this, we also updated our financial targets to reflect the next phase, the profitable growth phase and our raised ambitions. The new targets include: 10% to 15% annual growth over a business cycle through a combination of organic growth and acquisitions; 5% EBIT margin in the short term and 7% in the medium term; keeping leverage below 2x, measured at the end of each financial year; and dividend policy left unchanged. Dividend to be paid if cash flow exceeds investments in profitable growth, provided that the capital structure target is met.

Next slide, please. Before I hand the word over to Jesper, I would like to take one step back and put our financial improvements into perspective. This quarter marks the tenth consecutive quarter of year-on-year profit improvements and the sixth consecutive quarter of profitability improvements.

With that, I will leave it to Jesper to deep dive into the numbers.

Thank you, Gustaf. And please turn to Slide 12. As Gustaf already mentioned, the first quarter developed in two phases, a weaker start followed by a strong finish.

Net sales increased by 1.9%, reaching SEK 2.2 billion with organic growth at 4.2%. From a market perspective, performance in the Nordics was solid despite the slow start. Finland delivered the strongest growth, although we still view the market as challenging. Across our segments, Premium Living stands out on the negative side. However, we did see a clear improvement during the second half of the quarter. And finally, the outdoor season is off to a good start with strong sales in the garden category.

Turning now to Page 13 and profitability. As already mentioned, profitability has improved year-over-year for 10 consecutive quarters. In the first quarter, earnings improved by SEK 23 million and more than doubled compared to last year. Adjusted EBIT amounted to SEK 44 million in the quarter, corresponding to an EBIT margin of 2.0%. Importantly, all 3 segments improved both earnings and margins year-over-year.

Moving on to Slide 14 and the EBIT bridge. The EBIT margin improved by 1.0 percentage point year-over-year, and overall, we're satisfied with both the development and the underlying margin structure in the quarter. The improvement is primarily driven by two factors: product margin and direct selling costs.

Starting with product margin, the improvement is mainly explained by strong sales of our new entry-level furniture assortment within the Value Home segment. Looking at direct selling costs, we see continued positive development driven by efficiency improvements in both inventory handling and last mile delivery. We're also pleased with the development of our fixed costs, reflecting continued cost discipline.

All in all, our EBIT margin amounted to 2.0% in the quarter.

Slide 15 and cash flow, please. Cash flow from operating activities amounted to minus SEK 50 million, an improvement of SEK 53 million compared to last year. However, the underlying improvement was more than SEK 100 million as Q1 last year included liquidated damages of EUR 4 million related to the IP-Agency disputes. In line with our seasonal pattern, inventory buildup ahead of the outdoor season results in a negative working capital development in the quarter.

The right-hand graph showing the development in liquidity walks us through the starting period position of SEK 301 million, deducting cash flow from operations and the impact of investing activities, and finally, adding the financing activities, which are primarily related to the utilization of our revolving credit facility and amortization of leasing liabilities but also include interest payments, bringing us to the period-end of SEK 349 million of liquidity at hand.

Slide 16, please. The group's net debt amounted to SEK 1.2 billion at the end of the quarter, and net debt in relation to LTM-adjusted EBITDA ended at 2.6x. On top of our liquidity at hand, we had unutilized credit facilities at the end of the quarter of SEK 800 million.

As communicated on April 21, we have, in close collaboration with SEB and Danske Bank, refinanced our credit facilities, securing long-term financing at lower costs and providing a solid foundation to continue executing on our strategy. The agreement has a 3-year term with an option to extend for an additional 2 years and a total facility of SEK 2 billion. And finally, acquisition-related liabilities amounted to SEK 249 million at the end of the quarter, of which we assess SEK 85 million to be paid this year.

With that, I will hand back over to you, Gustaf, to summarize and conclude.

Thank you very much, Jesper. Next slide, please. Let me do my best to summarize. We are financially stronger. Growth is stable. Profitability is significantly improving. Cash flow is strong and leverage is down. We continue to execute our strategy with full focus on operational excellence, strategic initiatives including a number of co-funded initiatives in AI and selective, proactive bolt-on M&A.

We, unchanged, strive to be a super-efficient online retailer with focus on assortment and pricing, strong campaigns and customer offering and a strong and seamless customer journey. With this, we are well positioned going forward, and our ambition remains unchanged: to be the leading consumer e-commerce company in Northern Europe.

Thank you for listening, and now happy to do our best to answer your questions.

[Operator Instructions] The next question comes from Benjamin Wahlstedt from ABG Sundal Collier.

I have a couple of questions today. So first of all, you note improved demand towards the end of the quarter. And I was wondering if we could have a more quantitative comment, say, on March growth, for example, to better capture the underlying growth rate with less ROT impact, let's call it that.

Benjamin, Gustaf here. I think I'll sort of repeat what we said in the report. January was probably a bit challenging because of the ROT deductions, but that sort of leveled off early in the quarter. I would say the majority of the effect came in, in January. And then February, as we said, cold weather impacted demand.

We do not wish to quantify the growth in March, but it was a strong end of the quarter. And as we mentioned, it came from our spring and summer assortment where we saw a good start, and that's why we're optimistic going into Q2. But we do not wish to quantify our March growth.

Fair enough. If I can tell you what I see in ROT figures, and then you can just say whether you agree or disagree with my conclusions then.

So when I'm looking at ROT application figures for building, which I imagine is the most relevant category for you, what I see is growth in ROT applications in January. February, these figures sort of dropped off but it's not a drastic difference year-on-year. And then in March, we actually see ROT applications growing again.

If I claim that the negative ROT impact was very much a January, potentially a February thing and there's no significant difference year-on-year in March, would you say that's a fair assumption?

Yes. I would maybe even more emphasizing that the majority of effect we saw in January, and February was probably more impacted by weather than ROT. But yes, it's a fair assumption.

Perfect. I would like to ask you about the gross margin as well. The improvement looks driven by last mile savings as opposed to product margins. And I was wondering how sustainable you believe those better last mile terms to be.

I would say it comes from both actually. We saw improvements in product margins. They come from a number of activities we've done. One is an increased share of sales of unique assortment, but there's also other ones. And then we see also an effect on postage. I would say that the effect from product margin, I would say, is sustainable.

I would say that part at least of the effect on postage is also sustainable because it comes partly from postage revenues. And I think it's more harder to tell what will happen with the cost on postage because that's one of the areas where we see small and, I would say, limited price increases due to the geopolitical situation. But that would be my answer. I would say the majority of it is sustainable.

Perfect. A bit of a detailed question and then I'll get back in the queue. When comparing your net sales figures and your total order value figures, I note that your total order value was some 5% higher. And this is the largest difference between these figures ever reported, well, since 2023, at least with the new segment structure. Should we interpret this as a positive signal for Q2? Or how should we understand the difference between total order value and net sales, please?

I mean your assumption is perfectly right. I mean we assume that we will invoice those orders in Q2. That's the easy answer.

Yes. And I think we can say that -- I think it's good that you pointed out that our order intake was actually stronger than indicated in Q1 from what came from sales invoice. And some of it comes from in some of our businesses, we've had a little bit of shortage of products where we have taken the order, but it will be delivered in Q2.

[Operator Instructions] There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.

Then I'll just say thank you very much. Thank you for listening in. Thank you for your questions, Benjamin. And if you have any other further questions, please don't hesitate to contact us.

Thank you very much for listening. Bye.

Welcome, everyone, to BHG's Capital Markets Day 2026. Our theme today is continued profitable growth. You'll be hearing insights on our strategy today and our new targets. You'll hear presentations from our CEO and CFO as well as deep dives on important aspects of the group strategy. We will end the afternoon with a Q&A. So please do send in your questions at any time throughout the program via the question field that you see there online, and we'll be sure to get to as many as we can at the end of the program today. So we're going to start with our CEO, Gustaf Öhrn, who is going to give us a strategy overview. But while we wait for him to join us, let's take a look at behind the scenes during Black Friday 2025.

[Presentation]

It has been almost 2 years since our last Capital Markets Day in Kalmar in the spring of '24. At that time, we communicated a clear strategy focused on stabilizing the business, improving profitability and strengthening the balance sheet. I am pleased to say that we have delivered on what we set out to do. Since then, we have achieved 5 quarters of growth, 9 consecutive quarters of profitability improvements and significant group consolidation and a significantly stronger balance sheet, reaching a leverage target of 2.5x. At the same time, the external outlook is brighter today than it was 2 years ago. The market is gradually improving. Online penetration continues to increase and perhaps more importantly, AI is now creating new opportunities for digital retail. So in short, we have executed on our plan. The strategy has delivered and the outlook has improved. This is why we believe the time is right to update our financial targets and outline the next phase for BHG. Our ambitions are clear. We have raised the bar.

First, to return to sustainable growth after the restructuring period, done. Second, to clarify the path towards our profitability ambitions of first 5% and 7% EBIT. And third, with a stronger balance sheet to reactivate M&A as a growth driver. Before we go forward, let's briefly step back and remind ourselves what BHG and our strategic fundamentals are. We operate in the home and household market. We are online. Our strategy is built around category leadership executed through a multi-banner model with more than 100 online destinations. And today, we are the largest online retail group in the Nordics with more than SEK 10 billion in revenue. We're organized in 3 business units, each with a distinct customer proposition and a business model to support it. We're operating through a highly decentralized model with culture built on entrepreneurial accountability. And our focus markets are primarily in the Nordics, but also in Northern and Eastern Europe.

Across many of our categories, we already hold leading online positions, and we see strong opportunities to extend that leadership, and this is enabled by 3 key factors: First, strong market positions in our core geographies; second, a technology and data-driven operating model; and third, the structural shift that continues to benefit us, the migration from physical retail to online retail. On top of this, as we will show today, AI is accelerating the advantages of online retail, improving customer experience, conversion and operational efficiency. The home and household market is a very large European market. We have a strong position in Nordic online. But with that said, the long-term opportunity remains substantial. Over the past 12 months, we have seen a gradual market improvement, and we expect this trend to continue. In Sweden, our largest market, key drivers include increasing disposable income from fiscal policies such as tax cuts and VAT reductions on food and also a recovery in housing transactions from easing of amortization rules, both being important demand drivers for our categories.

Retail ultimately comes down to 3 things: price, choice and convenience. To win in retail, you must be superior in at least one while remaining competitive in the 2 others. Online retail has gained share because it naturally delivers advantages across all 3. Lower fixed costs, enabling better prices, unlimited digital shelf space, enabling larger assortments and improved logistics, enabling convenient home deliveries, especially important for us, delivering bulky products to your doorstep. And what is particularly interesting today is that AI strengthens all these 3 advantages. It better -- it enables better pricing through efficiencies, enabling superior cost structure. It enables better choice through simplified product selection, enabled by superior product information and through conversational search on product level, and we will show great examples of this later today. And also greater convenience through things as AI-enabled customer service, which we will also showcase later today.

Online penetration surged during the pandemic and later normalize as physical retail reopened. Today, penetration is back to the pandemic levels. It's growing again, but still remains relatively low in our categories, especially compared to other categories and maybe more importantly, to other online -- more online mature markets like the U.S. and the U.K. This gives us significantly long-term potential and several structural drivers support continued further penetration. Fast and convenient last mile deliveries and payment infrastructure continues to improve, better personalization tools, enabling the relevant offer to each consumer. a new generation of digital native consumers entering their peak spending years and the fact that virtually everything is now available online. And as mentioned, AI further enhancing the digital purchase experience. As mentioned, focus is back on growth. So what are our key growth levers? We focus on 5 levers of growth that together make up our growth ambitions and our growth projections. They're also the main structures of today's Capital Markets Day.

First, we have 2 external layers of expanding the total market and continued online penetration. This I have already mentioned, and Jesper will expand on this in a minute. Then we have 3 layers of growth that make up the structure of today's presentation. First, Mikael Hagman will together with 2 of our platform CEOs, Anders from Hafa and Emma from Bygghemma Sweden, expand on how we use the first growth layer of operational excellency, the daily grind of being a retailer as well as the growth ambitions of category, geography and customer segment to drive growth. And secondly, I will expand on the second layer of internal growth drivers, the strategic initiatives, including a deep dive on AI and how it is used to drive innovation, customer experience and growth as well as efficiency. And lastly, Mikael and Jesper will clarify how our third international growth layer of M&A is back up on the agenda and how we use it to drive growth. BHG is after the consolidation, evolving into a group of 7 key platforms.

The role of the group is to define strategy, set financial targets and ensure the best allocation of capital. It also to co-drive strategic initiatives to secure innovation and competitiveness to secure the best talent and appoint the best CEOs to our platforms and through our center of excellences, support our platforms in areas online marketing and ESG and also sourcing and support in M&A. We also support the platform CEOs with our hands-on experienced BU leads, all coming from CEO positions in retail businesses. And one of the major advantages of the group structure is the ability to pilot new initiatives in one platform and then scale them across the entire group through best practice. And this is particularly relevant today as we explore AI-driven innovation. Our 3 business units each operate with a clear and differentiated value proposition enabled by the right business model. Home improvement with Bygghemma as its main brand. The key value proposition is unbeatable range at best price.

This is enabled by a capital-light, low-cost drop-ship model where the number of SKUs can be endless and is today approaching 1.5 million with a Nordic focus. Value Home with its main brand, Chilli, a value model winning by best price and very low cost structure, enabled by the private label model, no middlemen, ensuring strong margins and uniqueness in product and thereby avoiding direct price competition, securing a high-end margin business. currently with a key focus on the Nordics and Eastern Europe. And then premium living, targeting the more affluent consumer and creating access to Scandinavian designs in the global market. This enabled by a stock-keeping business model, premium brands and best price and with a razor-sharp focus on customer experience. AI is transforming retail, and we're already using it to improve both customer experience and thereby drive growth and efficiency. AI in retail creates many advantages, both for the consumer with functions like enabled personalized guidance and product information, enabling the relevant offering and simplified purchase decisions as well as from a retailer's perspective, creating efficiency from product content to customer service. This she is being online pure player by birth, well positioned to benefit from this shift. We have, as a consequence of our background, rich and well-structured data in place across destinations. This being the fundamental for what we call AI readiness, in short, making sure that we have high visibility in LLM-based search from the ChatGPTs to Gemini and the likes. Across the group, we're currently piloting a wide range of AI tools and AI agents and scaling ones that creates the most value. Now I will let Martin Leo, our CTO, explain more about how we work with AI.

At BHG Group, we're building the destination of the future of home improvement and furniture. As an online-first company, we are uniquely positioned to capture the benefits of AI. It is no longer experimental. AI sits at the core of our strategy to drive profitable growth. Our AI strategy rests on 2 main pillars. The first is customer experience driving growth. Through advanced analytics, we are able to understand our customers better than ever before. By identifying our customers' intent, we are able to deliver personalized experiences in real time. Our AI solutions also help customers visualize their products, provide personalized recommendations as well as provide access to product expert agents as demonstrated in a separate video. By improving our customer experience, we make living easy. And by simplifying for our customers, we drive higher conversions stronger loyalty and lower return rates, supporting both margin resilience and profitable growth.

The second pillar is efficiency. Managing millions of products, we leverage AI agents to automate processes across the value chain from product onboarding, data enrichment to categorization to real-time dynamic pricing and translations across markets. AI agents also streamline our customer service, enabling us to scale volume without linear increase in resources, all while providing chat and voice support 24/7. Our group structure sets us apart as we're able to build and test multiple proprietary AI agents and scale the successful ones across the group as best practice. This enables faster time to market and creates platforms designed for profitable growth today and in the future.

Thank you, Martin, and we'll come back and show more concrete examples later today. But so to summarize and before leaving the word to Jesper, we have done our homework, and we have completed the restructuring and strengthened the business. We are ready for the next phase of value creation. We are today financially stronger. We're back to growth and profitability improvements. We have a significant stronger balance sheet with leverage down to sustainable levels. We're structurally supported by an improving macro environment, driven by disposable income and housing transaction, continued online penetration, still low in our categories and further accelerated by AI, we have an operationally scalable model with category leadership in key categories in our key markets and with AI acceleration, productivity and conversion. And finally, we are well positioned to win with above-market growth where we continue to take market share and further fueled by reactivating M&A as a proactive, disciplined growth driver. And with that, I will hand the word over to Jesper, who will take us through the financials and also present today's presented financial targets. Thank you.

Thank you, Gustaf. The financial part of our presentation will cover 3 areas: first, a few reflections on developments since our last Capital Markets Day, then on to financial profile and the market environment. And finally, I will walk you through our updated financial targets and how we plan to achieve them. Let me start by putting the last 2 years into perspective. When we met 2 years ago, we expected the market to recover gradually. That recovery took longer than expected. We have seen growth over the past 5 quarters with a clear acceleration since last summer. Still, we have taken out more costs than planned and significantly improved profitability. At the same time, leverage has improved more than expected. We have increased inventory turnover, reduced capital tied up and strengthened cash flow.

Let's take a closer look at the numbers. As the bridge shows, the EBIT margin improved by 2.9 percentage points to 3.7% in 2025. Gross margin has been under pressure, but improvements in direct selling costs and a lower fixed cost base have more than compensated. The improvement in direct selling cost is evenly split between lower inventory handling and lower last mile delivery costs. Within SG&A, about half of the improvement come from divestments, while the other half reflects cost adjustments in the remaining business. If we look at the right-hand side of the slide, leverage has decreased significantly from 4.0 to 2.4x. And by the end of last year, we were below our financial target. Let's continue with financial profile. Our business model combines scalability with capital efficiency. First, the model is scalable. We have shown that we can grow sales faster than costs, creating operating leverage and improving profitability over time. Second, we are capital efficient. Net working capital is less than 1% of sales. The model generates a strong cash flow without requiring much capital to grow.

And third, we operate in a structurally growing market, as clearly seen in the numbers on the next slide. Looking at developments in 2017, we see a clear long-term increase in online penetration. During the pandemic, the trend accelerated followed by a period of normalization. On average, penetration has increased by around 0.9 percentage points per year. And we're now back at the levels we saw during the pandemic. Our view is that this trend will continue in the coming years. Online penetration in our categories is already significantly higher in more mature markets as the U.S. and the U.K. For us, this means that even in a stable market, we as an online player can continue to grow. Finally, before we turn to the forward-looking part of the presentation, a few comments on our seasonality. Sales-wise, Q4 is our largest quarter driven by the so-called black period, which started as a single day, but has become a much longer promotional period.

This creates a clear sales peak toward the end of the year. Q2 and Q3 are larger than Q1, mainly due to seasonal demand in outdoor furniture and garden-related categories. From a cash flow perspective, Q4 is typically the strongest quarter, driven by working capital movements with inventory reductions and higher supplier payables following the sales peak. Q1 is essentially the opposite with supplier payments related to Q4 sales and inventory buildup ahead of the outdoor season. So that was the past. Let's now look at the future and starting with our updated financial targets. As we communicated yesterday, we have revised the target to create greater clarity around both our ambition and the expected time horizon. The new target reflects where we are today and the development we believe is achievable going forward. Let's take them one by one. Our ambition is to grow 10% to 15% annually over a business cycle through a combination of organic growth and acquisitions. Compared with our previous targets, we have increased our growth ambition and made M&A a clearer driver of growth.

We also aim to reach an adjusted EBIT margin of 5% in the short term and 7% in the medium term. This clarifies when we expect to reach these targets. At the same time, we will operate with net debt-to-EBITDA below 2x at the end of each financial year compared with the previous target of 2.5x. Finally, the dividend policy remains unchanged. When free cash flow exceeds available investments in profitable growth and provided that the capital structure target is met, surplus capital will be distributed to shareholders. So how do we get there? And how far are we from the target today? Over the past 2 years, we have already moved more than halfway toward our medium-term EBIT margin target of 7%. Today, we stand at 3.7%, meaning we need to improve profitability by roughly another 3 percentage points. Growth will be an important part of that journey and with annual growth of 10% to 15%, we benefit from scale. But growth alone will not get us there. To reach 7%, we also need further improvements in the business. On the next slides, I will zoom in on the initiatives that will move us toward the 7% target.

Let's start with growth. The underlying total market in our categories grows by around 3% per year. At the same time, online penetration continues to increase. And our view is that it will follow the historical trend of around 0.9 percentage points per year. Combined, this means that the online market grows by roughly 8%. And that is the structural market growth we stand on. Of course, it won't be exactly 8% every year. But over time, that's roughly how we see the market growing. On top, we have 3 internal layers that allow us to grow faster than the market. The first layer is operational excellence, where we continuously develop our assortment, geographic reach and customer base. And a good example from last year is the robotic lawnmower Mammotion. At the beginning of the year, this was not a brand either we or our consumers really had on the radar. We quickly identified the trend, made the products available to our customers and with a lower price point, the category also opens up to a broader customer group.

In '25, sales reached almost SEK 100 million and is a really good example of operational excellence in practice. Operational excellence also means gradually expanding our geographic reach, either by launching local sites in new markets or by opening up existing sites to international customers. a capital-light way to grow using the platforms we already have. The second layer consists of group-wide strategic initiatives, and we focus on 4 areas: first, unique assortment, building a more differentiated and relevant product range; second, additional revenue streams such as retail media, where suppliers can promote their products through our channels and we can further monetize our traffic. Third, improvements in cost structure, which allows a stronger and more competitive customer offering. And finally, investments in data and AI to create more relevant and personalized offers to improve both conversion and customer experience.

The third layer is M&A. Through disciplined and selective bolt-on acquisitions, we can accelerate growth and strengthen our platforms. I will not go into more details here as we will come back to M&A later today. This is how we plan to deliver our ambition of 10% to 15% annual growth. And now let's look at the initiatives that will further improve profitability. As I mentioned earlier, we are already more than halfway toward our 7% EBIT margin target. Getting the rest of the way will not come from a single initiative. It will come from improvements across the entire P&L. And the first component is product margin, and here, unique assortment is a key driver. Our ambition is to increase the share of unique assortment from around 30% of sales by roughly 10 percentage points. This assortment has structurally higher margins, increasing their share could add around 1 percentage point to gross margin or roughly 0.5 percentage points at the EBIT level. The next component is direct selling cost.

And here, we see 2 main improvement areas. The first is inventory handling, where we have invested in automation over the past few years. As volumes grow, we will capture more of the benefits from these investments. The second area is freight. We have significantly improved freight costs through group agreements and by using our scale. At the same time, we have improved our delivery offering, increasing customers' willingness to pay and lifting freight income by more than 1 percentage point. So we still see opportunities to improve the freight net. SG&A. Within SG&A, improvements will come from both scale benefits and efficiency initiatives. One area with strong potential is AI-driven automation, especially in customer service and content creation. Today, we spend just over SEK 200 million in these areas. And with today's technology, we believe this cost can be reduced by more than 20% over time. And we already see this in practice.

At Nordic Nest, the AI assistant Nestor handled more than 40% of incoming errands in February and has reduced customer service cost by 17% over the past 12 months. Finally, we also see improvements in DNA. Over the past 24 months, we have improved inventory efficiency and reduced days in stock from 66 to 57. This allows us to reduce warehouse space and lower depreciation related to warehouse infrastructure. And we are not done yet. We still see opportunities to improve efficiency. Together, these initiatives will help us to reach our 7% EBIT margin target. Finally, a brief comment on cash conversion. Our capital-light model means that a large share of earnings converts into cash. This gives us strong financial flexibility to fund growth, including acquisitions. Thank you.

Welcome, Gustaf and Jesper. Let's take a few minutes to discuss a few aspects of what we heard about in your presentations. And we'll start with you, Gustaf. If you could just reiterate why is it the right time to update the financial targets now?

We feel the timing is right. We're firmly out of the restructuring phase. We're firmly in the profitable growth phase. We have executed our strategy, and we're proud of what we achieved in the last 2 years. We have a well-defined strategy looking forward. We have defined what we want to do, and we have quantified the effects of those actions. And we also see an improving market and penetration is back to growth. So in summary, I think it's a very good time to sort of communicate our new growth ambitions and our new growth plan.

Thank you. Jesper, you mentioned for the targets a short-term and a medium-term horizon. Can you be a little more specific?

I think I can be super clear. Short term means within 24 months and medium term, 3 to 5 years.

Okay. Then also, Jesper, you have lowered the leverage targets from 2.5 to 2. Can you elaborate on why?

I think there's 3 reasons. First, it reflects a stronger financial position. And second, we're also so confident that we can reach our financial targets, both the growth and the EBIT target while operating at a lower level. And the third, given the recent history, we think this is the right and prudent level to aim for.

Okay. Let's talk more about how AI is influencing the retail industry. Gustaf, what would you say are the most important changes happening now?

There's so many things happening. It's super exciting. It's going really, really fast. But 2 things that has happened really short term that I find very interesting is one is the tailor-made AI agents. If I go back sort of 1 year or maybe 18 months, we were implementing AI solutions, but it was more that we were implementing AI-based tools for content creation, for CRM, et cetera. And what has really happened in the last 6 months is the ability to build our own tailor-made AI agents for specific purposes. And what is surprising is how fast it is to be done and at how low cost levels it can be done. So I think that is really exciting. And the other one I would mention is coding. Same thing there. is almost mind-blowing at the moment, how we get ideas and proposals from smart employees who don't really know coding, but they can produce interesting software just by the ability to today code without being an educated coder. So I would single out those 2, tailor-made AI agents and the speed of coding.

Interesting. And a final question. There is a lot of volatility in the world at the moment. How is the current geopolitical situation affecting you?

Nobody can deny that it's very relevant today. And I would say the effect on us is limited. We have no direct effects so far. We haven't seen any changes to prices. Our sort of shipping routes are unchanged and unaffected. We've sort of been going through around Africa for quite some time. So from that perspective, very little. I think if the oil prices keep on being very high, then we will see effects on our shipping cost. But with that said, that's a fairly small cost component for us, and it's also a fairly small part of our assortment that actually is shipped from Asia. So the effects are small to limited and no direct effects. But I think you should also mention that consumer sentiment is always, to some extent, affected when you get geopolitical unrest as we're getting right now. Our experience is that you get some effect, but it's very short-lived. And I can compare to last year, then it was around Liberation Day. We got some effect, but it was also very short-lived. So that would be my conclusion. We monitor it super close, of course, but we see very limited or no direct effects at the moment.

Okay. Thank you very much, Gustaf and Jesper. And now it's time for our first strategy deep dive where we're going to focus on operational excellence. Mikael Hagman, BHG's Deputy CEO and Head of the Home Improvement section, welcome to stage.

Thank you, Emalee, and good afternoon. I'm here to speak about how we create value in operational excellence today. At first glance, BHG is a collection of diverse brands in varied markets. However, beneath the surface, the operational DNA is remarkably consistent. We don't just manage a portfolio. We manage platforms with similar needs. Now some of the key points, shared challenges. Regardless of the end consumer pain points, customer acquisition costs, logistics complexity, the need for an asset-light footprint, they are all identical between our platforms. We provide an additional advantage, the BHG Advantage, where we can provide centers of excellence where needed. We benchmark best practices across the group so that a win in one company becomes a blueprint for the others. Our size also allows us to negotiate Tier 1 terms for last-mile delivery and payment processing that for a stand-alone brand are overhead cost. For BHG, there are sources of margin improvement.

This structural advantage is what allows us to consistently execute on the core drivers of e-commerce profitability. Now as many of you know, success in our sector is dictated by price, choice and convenience. But in a competitive environment, the how matters more than the what. And for us, the how is many times centered around data. If we start with competitive pricing, which we call the efficiency engine. At BHG, competitive pricing isn't about a race to the bottom. It's the result of our structural discipline. Our guiding principles are low-cost base, high efficiency, low capital employed. This lean setup is an armor. It allows us to be competitive even in adverse conditions. Coming to the data edge. We don't guess on what price to put. We use data to find the optimal level where we can maximize our margins without losing volume even under heavy market pressure. Price only matters if you have the right product. Because of our scale, we sit on many times more the customer data than our competitors. We know what they want and what they'll want tomorrow.

One key point is that we use our multi-banner strategy that includes specialists at the forefront of each category, understanding the future needs. But we'll take it even one step further. Through our partnerships with, for example, Google, we look outside our own walls to understand the search intent and the problems customers are trying to solve even before they reach our shops. We utilize operational synergy. For example, by using a shared warehouse, we make a single SKU available across multiple sales channels. This keeps our inventory lean, ensuring that the customer always sees an outstanding selection. And finally, the retention engine, which is the best shopping experience. Now the experience starts with an intuitive web shop, but always ends at the customer's front door. We focus on frictionless payments and home delivery solutions that bring people back. Looking ahead, AI will no doubt play a bigger role. We are deploying AI to personalize the journey, enhance customer care, ensuring that convenience isn't just a promise, but a constant reality.

Efficiency provides the stability, but our operational excellence is ultimately the fuel for our top line growth. Our growth strategy starts with defending and expanding our primary categories. We call this the core. This is the foundation, but it's far from the ceiling. We are successful in exporting our model into near neighbor categories like home appliances and outdoor. And these sectors mirror many of our core dynamics, allowing us to be competitive in an increasing number of categories. Coming to the geographical side, our geographical expansion is disciplined. We utilize a stage entry, often starting with a local BHG company to test the waters in a certain category with low risk. Once we prove the competitive advantage, we lean in with step-wise investments. We still see significant white spots in the Nordics.

And with Nordic Nest, we have a proven vehicle for international scale beyond our home markets. A critical component of scalability is the internal collaboration that allows us to move faster than the market. The ultimate stress test of how our model works is how well our companies collaborate. By pairing our generalist traffic brands with our specialist house brands, we create a closed-loop ecosystem. We take raw data, basket analysis or price elasticity and turn it into physical products with higher margins and better hit rates in our own sales channels. This then produces new data that we can leverage. And to give you a concrete look at this in action, I'm joined by Emma, the CEO of Bygghemma Nordics; and Anders, the CEO of Hafa. They have co-created a new bathroom assortment that perfectly illustrates how BHG captures value through vertical integration.

So today, we will share how we operate together, creating structural advantage and increased value for our customers and owners by utilizing and combining our core strengths as 2 separate business units within BHG Group. So starting with Bygghemma, we are the online home improvement player with an unbeatable range to the home improvement customer. We have the customers that buy for the small fixes to the larger renovations in more or less any part of the customer's home or gardens. And with more than 10x larger assortment than our closest competitor in the bathroom category, we are the market leader in this category specifically. And what turns our scale and size into true value is data.

Every month, more than 2.6 million customers interact with our platform. And this gives us real-time insight into customer behaviors, so we know what colors they like, the sizes they prefer, what product categories or to what price points and how they like to mix and match. And on top of this, our own in-house digital team continuously analyzes external data, which enables us to be really quick to catch trends. So in other words, we have the insights built on actual customer behavior, no service or lagging reports and we spot the trends early. So the value that we bring to Anders and Hafa is that we know what sells to what price in the total market today, and we spot what will sell tomorrow.

Thank you. Hafa, part of BHG Group has more than 60 years experience in developing battery products. Over time, we have built strong in-house capabilities with designers, engineers and product developers working together to create innovative interior solutions. We're relevant. We protect those innovations through patents and design protection, but equally important is our focus on quality, compliance and sustainability. We stay close to market trends through more than 2,000 external customers, global trend fairs and a large supply network across both Europe and Asia. This gives us a very strong understanding of design trends, but also technological development. However, what Emma just described adds something extremely powerful to that foundation. With direct insight to real customer behavior, we can identify trends earlier. We can optimize the product portfolio more precisely, for example, colors, sizes, combinations.

We could -- we can even improve our purchasing decisions. In short, we combined decades of product expertise with real-time market data. That creates value for Bygghemma, for Hafa, for our external customers and ultimately, for the end consumer. So how do we turn this strong product development into a compelling offer for the end consumer? Hafa has the same long heritage in brand building and concept development as we have in product development. Today, we manage 12 different brands, 3 of which are BHG exclusive, meaning that we have a unique assortment for those. Hafa remains our most well-known brand. But internally, one of the most successful collaborations in recent year has been Bathlife, a brand developed together with Bygghemma. Through our unique setup, we can identify high-volume product opportunities, develop them together and bring them to market at a very competitive price point. This collaboration has been very successful.

In fact, Bathlife is today the single largest bathroom brand on Bygghemma's platform. Brand building, that is something for us that's very closely related to content and visual storytelling. In addition to a strong marketing team, we operate our own state-of-the-art photo studio. We produce digital content in-house and work with a strong network of external parties to communicate our concepts to the market. Operationally, almost all our products are stocked in our central warehouse in Halmstad. And through our tailor-made drop shipment model, we deliver daily shipments across all Nordic markets. In addition to our own brands, we also distribute a wide range of products for Bygghemma, helping them securing competitive pricing and strong service levels on those. One challenge for traditional product companies like ours has been long time to market. This is something where modern go-to-market channels Bygghemma has really transformed this industry. Emma?

Thank you. Yes. And at Bygghemma, we operate a market-leading digital sales channel, and we support our online sales with showrooms for those customers in need of that physical support. We have a nationwide coverage with an impressive tailor-made logistics. There are other e-commerce players doing an okay job with the smaller or lighter deliveries. We handle full market coverage, everything from the small parcels to the heavy complex deliveries. It's reliable, it's efficient and it's smooth. And with current stable level hitting above 90% delivery to promise, we get great customer feedback, and this removes friction from the buying decision and enables larger, higher-value projects. We also operate with highly advanced price matching tools, always to secure the relevant price at that specific time.

And again, looking into the bathroom category specifically, we have over 80% shopping impression share in this category. And to put a reference to that 80% visibility, another very big player within home improvement is visible below 50% of the times and other bathrooms experts in this market, also the more digitally advanced experts. They are visible between 25% to 30% of the times. This means when you search for anything within bathroom, we will be there more than 80% of the times, and the competitors are quite far behind. So we control visibility, demand and margins in a way that traditional retailers cannot. And overall, and this combined, the result is highly efficient, a fully controlled go-to-market engine and a very powerful sales channel for all bathroom products.

And in addition to the benefits already described, our collaboration has recently enabled us to unlock very exciting new types of synergies. Through our shared approach to product development, brand building and sales, we have developed new coherent design concept across both bathroom and kitchen under the brand name Westerbergs. This is a category with high search volumes and strong consumer demand. Compared to traditional players, we have launched a broader concept built around the most commercially attractive design trends. And this becomes more unique when we combine this with the direct-to-consumer model and the Bygghemma platform.

And this is really where the strength of the BHG ecosystem becomes very clear. Together, we have a unique model where we control the entire customer proposition from product development and brand building all the way to the end consumer. And with no intermediaries, we create a structure where margins become more attractive while pricing for the consumer becomes significantly better, in many cases, 30% to 40% lower than traditional retail models. And what has historically been a slow-moving home interior market, this allows us to launch new concepts faster and with more precision than anyone else. We have seen similar transformations like this in other industries, for example, FMCG and fashion. And we believe that the home improvement market is now entering a similar phase. And with our combined capabilities, BHG is very well positioned to capture that opportunity.

Welcome to the sofa, Emma and Anders. We'll spend a few minutes to go a little deeper into what we just heard you present. We'll start with you're both sister companies in a group. What is the single biggest competitive advantage would you say in this setup as opposed to being a stand-alone company?

I would say that total value of utilizing our true core strengths and that we actually get to focus and develop within our core areas of expertise. So from my side, Bygghemma, we get direct access to the best product development and best brands with reliable deliveries directly from Anders' warehouse without us having to focus on product development or brand building or even having our own warehouse. So I'd say the biggest competitive advantage is that total value of utilizing our core strengths.

And for me, I think I need to mention what we just spent a couple of minutes talking about the strength in the product development model, how we've been able to improve that through combining all these years of experience into product -- in product development together with this customer insights, real-time customer data that enables us to make better assortment decisions. It enables us to make better purchasing decision, which adds value to everyone, then consumer, of course, but even also Bygghemma also for Hafa, but also for our external customers.

So you're talking about the value of this integrated model. So why not integrate even further then? Why should you keep the independent business?

I think, as you mentioned, we benefit a lot from the shared synergies. But I think it's very, very important to understand that for Hafa, the most important task we have is to operate as an independent partner to our 2,000 external customers. That means that we focus a lot of our efforts on synergies into areas that will benefit everyone. For -- operationally, I think it's very, very important that we maintain our stand-alone decision structure and commercial independence to serve as a strong partner to our customers.

Yes. And to build on that, for Bygghemma, we would never compromise on our customer promise. And our customer promise is greater and bigger than Hafa alone. We have an unbeatable range. We have a broad depth in our offer to our home improvement customers. And in order for us to honor and live up to that customer promise, we need to strengthen and develop our partnerships with several suppliers. So I would say that the current ecosystem that we have created suits our operating model very well.

I think you could say that today, we found a model where we can really realize group synergies without losing that important entrepreneurial focus.

Okay. Thank you. Now we've talked about strategic benefits of the group. If we can move to financial benefits. If we focus on the increased margins that you mentioned in your presentation, walk us through how the partnership adds extra value -- is it primarily by just removing the intermediaries? Or can you tell me a little more?

I can start on this one. So of course, it adds a lot of value from removing intermediaries. It enables us to lower prices for the consumer. It enables us to have stronger margins. At the same time, that is only part of the equation. For example, the cost efficiency of the go-to-market model that's another part with platforms like Bygghemma have a much lower customer acquisition cost due to the benefit of scale and also a very high amount of organic traffic. And that is something, of course, as a supplier that gives you stronger and better market access.

And to add to that, that improved speed in capturing trends fast and the commercial sharpness that we are co-creating here, although it doesn't have an immediate margin improvement per product, the improved sales growth and success rate when launching new concepts will for sure improve. So the total financial benefits are indeed the margin improvements, but also the improved sales growth.

Okay. Well, thank you both for your insights here.

Thank you.

Thank you.

And now we will move to our second deep dive focusing on BHG's strategic initiatives. Gustaf, welcome back to stage.

Thank you, Emma, and thank you, Anders. So far today, we've talked about operational excellence, the foundation of our business. I will now move on to the second internal growth layer of strategic initiatives. Strategic initiatives. Let me first put it into context. Strategic initiatives is what we from group identify and co-drive across platforms to ensure innovation, long-term competitiveness and accelerating growth. The nature of strategic initiatives evolves with the phase of the company. During the restructuring period, the focus was very much on consolidation, cost reduction and inventory discipline. Now as we have moved into the phase of profitable growth, our focus has shifted.

Today, we concentrate on 4 key initiatives: unique assortment, AI and data, cost structure and additional revenue streams. Together, these initiatives strengthen both our customer proposition and our structural competitiveness. And each of these initiatives play a distinct role in our development of BHG. First, unique assortment drives differentiation, drives pricing power and secures margins. Second, AI and data improves customer experience, growth and efficiency. Third, cost structure is what enables the best offer to the consumer and long term will be the key differentiator for success. And lastly, additional revenue streams allow us to monetize the traffic and the scale that we have already built and created. I will deep dive these 4 strategic initiatives and with the help of my colleagues, also add concrete examples.

Let me start with unique assortment. Historically, this has often been referred to as private label. But for us, it is broader than that. At its core, it's about creating a distinct and differentiating offering. This allows us to remove intermediaries and create strong entry margins. It also avoid a way to avoid direct price comparison and thereby secure high-end margins and through uniqueness, secure differentiation and brand identity. And looking ahead, this will become even more important, an increasingly AI-driven retail environment, product uniqueness will be key to visibility, relevance and brand values. Now I will let David Olhed, our CEO of Home Furnishing Nordic, expand on how they use unique assortment as a key value driver in their business.

Home Furnishing Nordic, we create an unique assortment in a structured and repeatable way. It all starts with data. We analyze what customers are searcing for, but words and images. You're seeing AI-driven tools with steady trends, demand patterns and gaps in the market. This allows us to identify opportunity early and develop products that customers are looking for. AI helps us translate large volumes of search behavior and data into product decisions. We design our products in-house and work closely with suppliers in Asia and Europe. Because we control the process and collaborate closely across the value chain, we can combine good quality, attractive design and competitive costs with short lead times.

By working directly with selected manufacturers, we secure strong healthy margins from the start. Every efficiency we create in sourcing and production strengthen our margins and enables a better price to the customer. That combination is key. The same data-driven approach also enable us to hold inventory in categories that traditionally not have been able to be online. Because our product development is based on real demand signals, we can do so with limited inventory risk. A good example is our sofa mattor. By analyzing search data, we saw a clear demand for a certain style that was mainly available at a higher price point. By developing our own version, we can now offer a comparable design, quality at a price roughly 30% lower. That creates clear value for the customer. This is not a one-off success.

The model has driven over 30% growth in sofa and bed categories over the past year, demonstrating how well the model works in practice. It's a repeatable way of building competitive advantage. And because we develop our own products, our products are not directly comparable. We therefore avoid direct price competition and can protect our margins over time while also maintaining higher margins due to the uniqueness of our assortment. In short, our model allows us to create products customers want, keep prices attractive and build stronger margins. At Home Furnishing Nordic, unique assortment is not just a concept. It is a data-driven and scalable way of creating long-term value. In addition, our model is AI-enabled from identifying demand signals to support design and developing our ability to scale a new and unique assortment efficiently.

Thank you, David. Our second initiative is AI and data. This is an area we're currently very active and where we see significant upside. As a digital native business, we have a strong starting point, large volumes of structured data across multiple platforms. We are using this to drive value across several areas with our current key focus on. In customer service, we are implementing AI solutions to improve both efficiency and customer experience, and we'll show more of a concrete example of this in a minute. In automation, we are using AI agents for tasks as supplier onboarding and product content creation. Conversion optimization, one of the most exciting AI enablers for driving growth. by enabling better and more accurate product information and conversational information on product level.

This, to me, is one of the areas where AI can enable product information and guidance now superior to the physical channel and one of the things that I believe will drive continued and increased online penetration. And in analytics, we are improving decision-making, particularly in areas like demand forecasting, where even small improvements can have a significant impact on both sales and margins. We're also investing in what we call AI readiness, ensuring that our content and data are optimized for visibility in LLM-based search environments. This is already becoming increasingly important traffic source for us. Finally, over time, we see strong potential in leveraging our data across platforms for hyper-personalization marketing supported by AI-enabled deeper understanding of the customer journeys. And now I will let Alexander Ljung, BHG's Marketing Manager, show a very powerful tool of AI-enabled product information.

Most online shoppers land directly on a product page. That means they do not start at the home page, browse through the store, they land on a specific product with a clear purchase intent. And that is where they decide, do I buy this or not? And also there is where the question arise, it could be a simple question like does this bathtub fit my bathroom or more technical one like 60 decibel, what does that even sound like? If customers don't get an answer, their leads, let me stay open up the new tab, start a new search, comparing sources and contacting customer service and every additional step creates friction and friction reduces conversion. How our product question agents asked a product expert directly on the page, it's the conversation of on price page itself, integrated with purchase decision happens. It explains complex specification in very simple terms, for example 60 decibel sounds like a normal conversation, but it doesn't stop information already shown.

The agents are just not only information available on our site including manual, some product data sheets, but also retrieves validated information from supplier specifications when needed. It clearly shows where the information comes from. This allows us to provide verified answers to questions that used to drive customers away. Instead forcing customers to leave, the product page to find answers, we bring all relevant information into the same environment where the purchase decision happens, visually and interactively on the product page. In physical retail, knowledgable staff staff have traditionally provided this level of expertise at shelf. With AI, we can now offer the same product knowledge digitally consistently and at scale. This is how we eliminate friction of uncertainty. By putting an expert on every digital shelf, we ensure that customers that land on our page, they don't just find the product, they find the confidence to buy.

Thank you, Alex. Super exciting and will be launched within short in selected categories. One of the key advantages of being a group is how we work with innovation. We can pilot new tools in one platform. We can test their impact and we can scale what works across the group. This, what we call pilot trial and scale approach allows us to move quickly while managing risk and cost efficiently. We're already applying this model across several AI initiatives. The third initiative is cost structure. Cost has always been important in retail. But in a world of increasing price transparency, it becomes a huge strategic differentiator. A superior cost structure is what enables us to offer competitive prices while maintaining sustainable margins and what enables flexibility in challenging times.

And examples of key initiatives in cost structure is, for example, automating customer service through AI, consolidating warehouses and fulfillment automation and reducing administrative costs through automation and AI agents. This is about building a structurally efficient business, not just reducing cost in the short term. To give some perspective, customer service is a significant cost base for the group. We today spend around SEK 200 million annually on customer service. And by applying AI, we can reduce both cost and improve service levels. We believe that we can reduce costs by approximately 20% short term. And with these new agents and long term, the potential is even higher. We can respond faster, we can scale more easily. And during peak periods, we can reduce backlogs, all of which directly improves the customer experience. And now I will let Bank Bergström, CEO of Nordic Nest, show a concrete example of using AI in automating customer service.

Hi, and a warm welcome to Nordic Nest Group's customer service team. In this office, our amazing team members are helping customers around our 70 markets globally. But one of our team members aren't visible here in the office. It's our colleague, Nestor. Our journey with Nestor started 2 years ago, learning, adapting and slowly improving. Today, Nestor stands for 44% of the incoming tickets. That's a huge improvement compared to just a year ago where we were at 15%. It means that Nestor is helping us taking out a chunk of the daily workload. But most importantly, we still remain on the high customer satisfaction levels as before. If you were to see it side by side, whether it's a human agent or Nestor helping the customer, you would see that the outcome is still the same, a clear, helpful support that solves the customer's problem.

There's no compromise in quality, just faster responses and a seamless experience. Nestor is just not a tool. It represents a structural way on how we can scale customer care, allowing us to grow globally without increasing cost at the same pace. One of the key reasons behind the success of Nestor is how the project was set up. It was led by our Head of Customer Care and driven together with our customer care team. Our approach is very clear. All AI projects should be driven from the business, ensuring the level of customer satisfaction that we need and meeting our business targets. Technology should be an enabler, not a starting point. And then we have the business impact.

With the help of Nestor, we have been able to reduce cost by 30% with our current sales volume that translates to SEK 7 million in yearly saving. The results are very clear. We have been able to increase efficiency and at the same time, protecting our high level of customer satisfaction. Nestor isn't here to replace people. It will help us with repetitive tasks, freeing up time for more complex topics where human expertise really brings value to the customer. And this is just the beginning where starting customer care is becoming a blueprint for how we can scale AI across the group. By combining business ownership, human expertise and smart technology, we can scale sustainably, improve our margins and enhance customer experience across every part of our organization.

Thank you, Bank. The final strategic initiative on our key priority list is additional revenue streams. Across our platforms, we generate more than 250 million visits annually. This creates an opportunity to monetize traffic beyond traditional product sales. And our current focus areas include postage and logistics services, retail media, where we sell advertising primarily to our suppliers and also, over time, additional platform-based revenue opportunities. These are typically high-margin revenues built on the infrastructure and the traffic that we have already created. So to summarize, our strategic initiatives are designed to drive innovation to strengthen our competitiveness, to improve our customer offering and to unlock new sources of growth and profitability. Together with operational excellence and M&A, they are the foundation of our growth strategy going forward. Martin, please join me and Emalee for continued discussions on strategic initiatives.

So welcome, Gustaf and then Martin Leo, Group CTO in person. Nice to see you. So we'll start with you, Gustaf. You mentioned that a certain assortment, unique assortment is critical. Can you expand on what concrete actions you're doing to achieve this and if anything else is needed?

Yes, happy to. On a general level, as always, when we say something is critical and we name it as a strategic initiative, we put a higher focus on it. We set targets, we follow up and we make sure that we develop. But what we also do on unique assortment is adding resources and adding competence. And then I'm talking about both resources and competence, both in product development and in buying these type of products. So those are 2 concrete things. And on top of that, with our M&A strategy, which you will hear more about from Jesper and Mikael, we will also be looking for potential targets to acquire, both that could be private label brands or private label businesses that fit into our platforms to expand the level and our share of unique assortment in our total business.

Thank you. Now moving to AI. If you could summarize where you see the biggest potential in AI improvements.

I think some of the samples we've seen sums it fairly well. And if I were to single out 2 as I think, examples with big potential. And if I started in where I see the biggest potential in what we call customer experience and growth, then I would start on this product information. I think the ability to sort of have a conversational discussion with a product, getting access to all the questions you want to ask is, to me, a big, big step, removing a lot of the historical friction for online buying and is super exciting. So that would be my key one, I think, on experience and growth. And if I were to single out one on efficiencies, it will be the one Bank spoke about, automating customer service. First, because it's a big cost that we can build efficiencies in, but also because you can get good answers, high-quality answers, timely and also reduce and create the flexibility that we sometimes lack because one of the big challenges in retail in general is the changes in capacity and being able to scale up in peak selling seasons and make sure that we can handle all consumers also in those seasons, that is critical. So super excited about that as well.

Martin, how will we make this happen in practice? What are some of the challenges there?

Well, obviously, it's exciting times to work in BHG and to work in tech. New technology is allowing us to now build proprietary agents across our group, utilizing different LLMs for different purposes. And in the near future, I would say that we will see a case for managing as many AI agents as we will have staff members across our business, not least in the areas that Gustaf mentioned, such as product data management as well as in customer service. So I think those are key in many aspects. And I think in order to manage that many agents, we will also build as we are building now, agentic frameworks that allows us to manage, monitor and ensure that we get the performance and the results out of our agents that we deploy.

And how are you in terms of competitive position on this?

I think I briefly mentioned it in the video. I think we get the best of 2 worlds in BHG. We are able to get the speed and the nimbleness out of our platforms while providing the scale and the vast amount of data that the group can provide. So I mean, innovation as such happens close to the customer in our platforms, and we're able to test a number of initiatives in parallel and being able to scale the successful ones as best practice across the group. So if I summarize it, I think we're in a sweet spot. We have the speed through our platforms and the ability to scale through our group structure. I think that's what sets us apart.

Great. Thank you very much.

Thank you.

Thank you.

Thank you. And now time for our third and last deep dive, which is on M&A, and we will welcome back Mikael Hagman and Jesper Flemme.

Thank you, Emalee. Jesper and I will talk to our M&A strategy. At BHG, we just don't buy companies. We make them better. BHG was built on bringing great companies together. For us, the deal is just the start. Our real strength is in developing companies we buy to make them grow faster than they could do on their own. One important aspect is keeping the talent. We make sure that the founders and leaders stay with us. We aren't just buying warehouses and websites. We're keeping the entrepreneurial spirit and the expertise that made those businesses successful in the first place. Now that we are better organized as a group, we have gotten much better at our ability to add new companies to our system. We have the plumbing, so a new business can plug in and start growing immediately. Because we have this solid system in place, we can be much more selective and surgical about the specific types of companies that we bring onboard next.

We are not looking to buy new massive platforms right now. We're looking for add-on companies that can help us improve our margins and revenues immediately in our platforms. Around this, we have created 3 core pillars that we devise our M&A strategy on. It's product choice. And the core question here is, can this give us a better range of products faster than we could build it ourselves. Our own brand, our unique offering, we focus on companies that have our own unique offering. This is a major advantage because it protects our profit and fortifies our position in the category. And finally, they need to fit the system. The new company must be able to integrate into our platform and not become isolated islands. This is where we save money and create value.

To see how this strategically actually creates a market-leading position, let's look at how we built our #1 position in the bathroom category online. We started with one site, Bygghemma, but we added layers to protect our lead over time. We bought companies to cover all of the Nordic countries. This gives us a pan-Nordic footprint that today is the foundation of Bygghemma Nordics. In addition, we bought several different websites and shopping windows so that when a customer searches on Google, they find us no matter which link they click. We call this owning the shopping street. We bought Hafa to get our own high-quality brand in the category, and we bought Golvpoolen to get the high-end brands that we have been unable to secure in the future before. The result is that today, we are the clear leader. No one else has the same variety or depth, whether a customer wants a bargain or a specialist service they're buying from a BHG company. So this is a blueprint for us. We're doing the same thing across more categories, and it is the key to our future success. Jesper?

Thank you, Mikael. So how do we approach M&A? We run a proactive group-led process to identify bolt-on acquisitions that can build on existing platforms. Discipline is key, both strategically and financially. And to stay disciplined, we follow a clear set of criteria. And to echo what Mikael just said, strategically, we look for companies based in the Nordics that can strengthen us from a category perspective. If they also bring unique assortment, that's a big plus. Financially, we focus on growing and profitable businesses with clear synergies. And operationally, we prefer online or online-first businesses that can benefit from our platforms and have come with strong management teams to build on.

So let's look at how the model has evolved over time. As Mikael said, M&A is a part of who we are and has played an important role in building this group. The objective has always been to support growth and create scale. It started with geographic expansion, then moved into category expansion and followed by larger platform acquisitions. More recently, we have returned to focusing on bolt-ons and assortment. And over the years, we have learned from both successes and mistakes and refined our playbook. Today, we believe that the best way to create value is by focusing on smaller businesses with strong niche positions and lower integration complexity. And our latest acquisition, KitchenTime is a really good example of what we're looking at. So with that, I will hand it back over to you, Emalee, to continue the discussion.

Welcome to the sofa, and we have Bank Bergström in person joining us who we saw on the film. You're the Head of Premium Living and CEO of Nordic Nest and also Mikael Hagman back. So let's take some time just to delve in a few elements of the M&A strategy that we heard about. Mikael, if we start off with the strategy as a whole, why do we actually have to do acquisitions and why not just expand organically?

That's a good question. And I think one has to start with sort of bursting the bubble on the organic myth. It does take resources. It does take time, and it takes a lot of complexity within an organization. So sometimes it's actually faster to purchase something from the outside. And I think importantly, we are now able to add value almost immediately to any company that comes into our system. We have better processes. We understand the market better through our data, and we have collective agreements, which they can utilize from the beginning. And speed is often a factor.

Any good examples of -- to illustrate this value?

I think Jesper mentioned KitchenTime, which is the last -- latest acquisition within Nordic Nest Group, and we acquired KitchenTime in 2024. And already in 2021, we set a target to increase the focus on kitchen and cookware, and we were really struggling. And in 2023, before the acquisition, we reached 6.4% in sales share in kitchen and cooking. And 2025, a year after the acquisition, we have doubled the sales share in the category. And I think that exemplifies where we can actually accelerate with an acquisition.

Good example. Do you have any takeaways, key learnings from the shift in the M&A strategy?

I think so because in the beginning, we were actually building the house. The house is now ready. It's ready for upgrades and additions. So I think that infrastructure is in place. The other thing is that now we don't feel the same pressure to buy volume. We can be more surgically precise in what is interesting for us. And again, it's one tool in the box that we utilize. So I feel we have more tools in our hands right now than we did before.

And not all M&As are successful, right? If we continue with learnings, what have you learned from past experience to take forward?

Thanks for pointing that out. No, that's right. Not everyone is a home run, of course. That's true. But I think we put in place some key measures in order for that not to happen in the future. And one is sort of the geography scope where we focus on our home markets of the Nordics. The second is the support infrastructure that we built in our platform. And as Jesper mentioned, we have some strict sort of filters in there as well on what we are actually buying. Battle scars has its advantage. We were many who were -- has been here for a long time, and we've been here through the good times and the bad times, and we've learned from that. So I think that's a good experience.

And I think if I may add, I think one thing we should never underestimate is that the work it takes to consolidate not only the business, but the team. And the bigger the company that we acquired, the bigger also the team and different cultures and different ways of working will slow down the possibility to get the synergies out.

Okay. Thank you. And Bank, as Head of your business unit and as you mentioned, CEO of Nordic Nest, are there any dream targets that you have or categories that you have your eyes on?

I have a short list for sure, but I think I will just avoid to mention any names here in the studio. But what we're looking for is either geographical expansion or category expansion. And there are a lot of great opportunities out there. But for us, being very strict, make sure that we are increasing profitability with the acquisition we do is, I would say, the main pillar.

Okay. And Mikael, what's your top priority going forward?

I think going forward, one should see us strengthening our core, strengthening our core in terms of geography and category. We've heard many times unique assortment. So that will probably be a big part of our playbook as well. And again, geography, keeping it close to home in the Nordic market, I think, will be a key to our future success.

Okay. Well, thank you both for your insights.

Thank you.

Thank you.

And now over to Gustaf for his final remarks.

Thank you, Mikael. Thank you, Bank. Now it's my job to do my best to wrap this up and to summarize it. And after this, I will be joined by Jesper and Mikael, and we will together do our very best to answer your questions. So a short summary of what we have tried to convey in today's Capital Markets Day. We have done our homework. We have completed the restructuring, and we have strengthened the business, and we are ready for the next phase of value creation, the profitable growth phase. We are today financially stronger. We are back to growth. We have strengthened our profitability continuously over the last 2 years.

We have a significantly stronger balance sheet with leverage down to sustainable levels. We're structurally supported by improving macro environment, driven by disposable income and housing transactions and also continued online penetration still low in our categories and now further accelerated by AI. We have an operational but scalable model with category leadership in key categories in our key markets and with AI acceleration, productivity and conversion. And finally, we are well positioned to win. We have above-market growth where we continue to take market share and now further fueled by reactivating M&A as a proactive, disciplined growth driver. Thank you. Now please, Jesper and Mikael to join me for the Q&A session.

Great. So welcome to then our Q&A. Thank you so much for sending in your questions. We've got quite a few here that have come in, so we'll jump right in. And we'll start with a question, what gives you confidence in the path to 7% EBIT?

If I may start, as I think we've said, we have delivered on what we set out to do. We feel that our strategy is working. We have seen solid profitability improvement and growth lately. We have consolidated our business, but maybe more than anything else, we have a well-defined plan with quantified actions, and we have an improving market. So we are confident in our way to take us to 7% that we have set in the financial targets.

Thank you. Okay. Next question. You've said the restructuring is behind you. What defines success in 2026?

I would say 2 things. One is growth to continue to deliver growth above the market, which means that we continue to take market share. And secondly, I would say that we are delivering on our strategy, taking us to the profitability goals we have defined and following the plan we have laid out and continue to improve on our profitability.

Okay. Thank you. Another question here. Given Middle East tensions, how exposed are you to higher freight costs? I guess that's you Jesper.

I think that's you.

I think that's -- it's a tricky one. But if we start with just emphasizing that what we're seeing right now is not even close to what we saw during the pandemic with real capacity constraints. And if we then look at '26, I think for this season, we have the products that we intend to sell either in our inventories or on the boat. So we feel -- we're not overly concerned. We feel to somewhat shielded by the agreements that we have. And if we then take a step back and trying to give you some kind of numbers, it's below 10% of the products that we sell that are directly sourced by us from Asia. So again, not overly concerned. But of course, if this continues, freight rates will go up.

Okay. Next question here. What gross margin impact do you associate with the shift to increase share of unique assortment? Would that be again, Jesper?

No. As I said in the presentation, the share of sales is roughly 30% today, and we intend to increase by 10 percentage points. And that could add 1 percentage point to the gross margin or 0.5 percentage points at the EBIT level.

Okay. Next question here. What are the biggest challenges in the current M&A market? Mikael, I guess that's for you.

Yes. There is a good deal flow. There are a number of interesting candidates. For us, we will strictly adhere to our strategy, which sort of weeds out a lot of the volume that's coming in. I think valuations are at an acceptable level right now. It's not a big hurdle. So I don't really see great challenges. It's more up to our own discipline and strategy.

Okay. Thank you. Questions come in. You target a 10 percentage point higher unique assortment share and talk about a 0.5 to 1 percentage point uplift in gross margins as part of your margin targets, implying a 5 to 10 percentage point higher gross margin for unique products versus others. Is this a fair assumption? Or what are we missing?

So I hope I got the question right, but I think the comparison is between external brands and unique assortment. And unique assortment has roughly a 10 percentage point higher gross margin than external brands. So if that was the question, I think at least I try to answer it.

So there is a fair something, good, okay. Thank you very much. So regarding M&A strategy, how confident are you that bolt-ons expand margins?

I'm very confident if we stick to our strategy. I mean that's the core target of companies that we're looking for. And we have a proven track record in that case as well. So I think -- yes, I'm very confident in that.

And I can just emphasize that we have defined the target lists and in what platforms it is relevant to do acquisitions. So just as Mikael says, if we follow that strategy, we should be doing that.

Okay. Another question. When you talk about 4% to 7% market share gains, how would you split this between M&A and organic initiatives?

If I start, please. And I don't think I can split it because it will be different throughout the years. I mean we want to have a meaningful contribution from M&A every year. But I can't give the exact split. Or can you?

No. No, no, no.

And I think what is implied in the growth strategy we are explaining is that we are being profitable. We're generating a positive cash flow, and we're using that cash flow for acquisitions.

Okay. Next question. If the market outperforms in migration to online, could we expect over 7% EBIT in a stronger market?

Sounds like a very positive problem. it could always be better. But I think we should be humble and be very clear that we are focused on our strategy. We are focused on delivering on our targets. And as I said, I'm confident that we can achieve the 7%, but that is the key focus to deliver on the strategy and deliver on the 7% we have set out to do.

All right. Next question. You've had a competitive advantage in search traffic. Could AI actually reduce your traffic by AI replacing traditional searching?

I think you have to take it one step back and look at the customer and the customer wants product or price, choice and convenience. And as long as we focus on delivering those aspects, if the vehicle is AI or if it's a traditional Google search, it won't really matter. And we have a number of initiatives, as Gustaf and Martin explained, targeting these areas, making sure that we're on top of things. And I think finally, we are online first. So that's our home turf. We will be first in that category.

Thank you. Next question, which of the 3 strategic layers in the growth strategy will be most important this year? 2026?

If I start on that one, I would say that there's no different any year. They're all super important, of course. But the most important one will always be operational excellence. I think it's super important that we never forget that we are retailers. And being a retailer is about managing price, product and the customer journey, and we have to do that well. So that is always the most important focus in our business.

And I fully agree. I mean, getting the basics right, the things we do every day, that's...

Retail fundamentals will always come first. I think that is key.

Okay. So another question. How significant are retail media revenues today? And what potential do you see medium term?

Should I go and then you can support me?

Yes.

It is a substantial part of our revenue stream today, not in all platforms, but in some platforms, we have the biggest revenues from that stream in Bygghemma Sweden. So what we're doing now is professionalizing that and also expanding it to more entities. And it's also important to keep this distinction in what we call trade marketing and retail media. Those are 2 revenue sources. And it's important that we do that is that we really create incremental revenue on top of what we've had in the past. And that's what we're trying to secure. But it is not important revenue stream, but we see potential for more.

And I think maybe even more important than the sales contribution will be the profit contribution from these activities...

Because it's a very high-margin business. So it comes on top basically. Good point.

Thank you. What is the key reason for the lowered ND EBITDA target?

No, no. As I said in the sofa earlier, I think it's 3 things. It's we have a stronger financial position. That's one. Two, we see that we can achieve the growth and the EBIT target operating at a lower level. And three, given our recent history that hasn't been without bumps in the road, we think this is the right and prudent level.

All right. Next question. It is likely that your competitors are using AI as well. Can you clarify how or why you expect to outperform the competition in AI usage specifically, which we touched a bit on the sofa, but please.

I can mention 2 things. One, as I think we said, we are digital natives. I mean we are digital from birth. So we have the data. We have the data well structured. So that's one of the points. And I think the other one, which we also mentioned is the ability to trial and scale. I think we call it pilot trial and scale. We have the ability to trial AI agents and what works, we can scale in more platforms. And I think that right now might be the biggest advantage for us.

Okay. Good. Thank you. If we move on here, how far have you come in the integration of your platforms, Project Olympia?

Should I answer that?

Please.

Yes. I think we've come very far in certain areas or with certain platforms. They're more or less complete or completed. We still have some work to do in Bygghemma Nordics, which is sort of the biggest one. And we also knew that will be the most difficult one to integrate. And when I say we have a ways to go, I'm talking more about the IT infrastructure. Work-wise, it is a company right now. They're working together. There's shared management positions, they're shared functions, they're purchasing together, et cetera. So this leverage and scale is there, but we have not yet reached the point where we can take full efficiency from that. That will come shortly.

And I can just add that it's a huge effort that has been done out in the companies. We came out of the pandemic, we were roughly 25 entities. And now we have 6 platforms fully in place. And I would say the seventh platform, as Mikael mentioned, Bygghemma Nordics, we have a lot of the advantages, but it's not fully in place. But we are very, very close to finalizing that consolidation. With that said, there's still some synergies to be taken out still in some of the other platforms as well.

Okay. Thank you. Next question. To what extent have you been able to automate your fulfillment footprint? Can you provide any numbers, total number of warehouses, for example, and what technology installed?

Hard one to answer. We have reduced the number of warehouses quite significantly. I must admit I don't have an exact number in my head today, but we have reduced -- I think we have some reductions left still to be done. There's some consolidation left to be done. We have done automation in some of them. But it's also important to be mindful that in the sort of parcel goods, it's very efficient to automate and the smaller ones. It's much, much harder to automate in the bulky products. There, it's more about working on processes and routine and building efficiencies. But some of the automation techniques we're using as in Nordic Nest is with AutoStore.

And you could add that a large portion of our business is drop ship as well, which completely reduces the need for warehouses. So that's a huge advantage as well.

And another addition is, of course, that when it comes to reducing square meters and thereby reducing costs, there are more to be done.

Yes.

Thank you. Next question. How many AI agents do you have active in your company today? And what is the split between cost saving and improved sales?

Well, that was a tricky one. To be honest, I don't know how many AI agents we have.

There a lot.

There's a lot of them. Some are bigger, some are very small. We just encourage the company and the people, the employees to be creative to come up with ideas to trial, measure and then we can expand. But I must admit that I have no idea how many trials we're currently doing. And I don't think I should because then we probably have too few.

All right. Next question. To what extent, if any, do you experience competitive pressure from Chinese direct sellers? Do you know about initiatives from EU or local countries that will relieve this pressure?

Do you want to go?

Yes, I can go. I wouldn't say we're feeling any direct pressure. I mean, to a certain degree, they are there and they sell some, but we are trusted Nordic websites predominantly, where people have a relationship and they want to continue to buy. As far as EU or any other institution trying to limit them, I only hear what I hear on the news, no insider information.

But there is some legislation coming, but it's not in place yet. So some limitations, I should probably say.

Next question. Has the market become more promotional or less as of recently?

I think the market is always price driven. It's always promotional. There was one stage after the pandemic where in some categories was a lot of excess inventory and then it became even more. I would say that has normalized probably since 2 years back. But I think it's also important to point out that the most important price driver is not promotional pressure. It's actually price matching. And price matching is crucial today. And we do it in all our businesses because we want to ensure the best offer to the consumer, and we need to ensure the best offer to the consumer. But I would say that price matching is a bigger challenge than promotional activity.

I mean if the question is related to price pressure, I think that's -- there's always going to be price pressure, and we saw that through a high efficiency, low-cost asset-light operations. And we'll just continue to do that. That's the only way to deal with it.

Okay. Thank you. Next question. Savings on customer service, if realized, equals 0.3 percentage points on the margin. What will the remaining 1.2 to 1.7 on SG&A come from?

I think -- that must be a Jesper one. Thank you. So I think savings on SG&A were in these presentations illustrated by the potential in customer service, but it doesn't end there. I mean we are constantly going through making sure that we have a best-in-class cost structure, as Mikael said, to enable the best offer to the consumer. So I don't have 3, 4, 5 and other initiatives to share right now, but it's a continuous work, and it's really illustrated by the example with customer service and content creation.

And I can just add that our key focus is unchanged profitability, unchanged profitability, but the biggest and most important driver of profitability is growth.

Okay. Thank you. And I think we've managed to cover the questions that have come in today. And I'll perhaps ask the final question here, which is, how confident are you on the strategy that's been presented today?

If I may. I am actually very confident. I think we're in a strong financial position. I think we have a well laid out plan. I think we have a team in place that I have the biggest respect for and is very confident with. So I would definitely say that I'm more confident than ever that we can deliver on this plan.

I agree, yes. And one component to the team, I think, is that we've managed to keep our entrepreneurial spirit while becoming more structured. So they're entrepreneurial within a structured environment. And that's a big benefit, I think, for our going forward.

Very good addition because I think that entrepreneurial spirit is key -- has been key to our success and will be key to our success, continue going forward.

Very good. So thank you very much for this session here. And thank you all for joining us for BHG's Capital Markets Day 2026. Please note that this entire presentation was recorded today, and you'll be able to find it on BHG's website. So with that, thank you very much, and enjoy the rest of your day. Thank you.

Thank you very much.

Thank you.

Thank you.

[Audio Gap] [Operator Instructions] Now I will hand the conference over to CEO, Gustaf Ohrn and CFO, Jesper Flemme. Please go ahead.

Hi, and welcome. My name is Gustaf Ohrn, CEO of BHG. I'm here together with Jesper Flemme, CFO, to present our Q4 and year-end report. We will also be available after the presentation to do our best to answer your questions.

Next slide, please. This time, let me first take the opportunity to summarize the full year. Super proud of the year's achievement in 2025. We have delivered on what we set out to do. Entering the year, we defined 3 core tactical focuses and now summarizing the year, I can firmly say that we have delivered on all 3 of them. One, we have taken market share in a gradually strengthening market. The market has improved during the year, but I can, with confidence, say that with plus 9% organic growth, we have grown more than the market and taken market share.

Two, we have managed to maintain our cost levels and with growth at the main lever, we have improved our profitability with more than 50% versus previous year.

And three, we have continued to improve on the customer experience across our destinations.

Next slide, please. Back to Q4, with a well-executed Bank Month as the main growth driver, we have, for the second consecutive quarter, delivered double-digit growth with a plus 10% growth in the quarter and continued growth in all 3 business units. We are confident that we have outgrown the market also in the fourth quarter.

In the quarter, we've also reported a significantly improved profitability, reporting SEK 158 million in earnings, which corresponds to a 48% improvement versus previous year. The improvement in earnings comes primarily from top line growth in combination with the strengthened product margin as well as direct selling costs and SG&A well in control.

Of course, we are very happy about the growth in the quarter, but I would also like to highlight the improvement in product margin where the team has done a great job. In an unchanged price challenging market, our focus on price matching and unique assortment has enabled an improvement in gross margin. We report a strong positive cash flow of SEK 371 million in the quarter, an improvement versus previous year and following the normal seasonal pattern. Summarizing the year, we are super proud that we have been able to reduce our inventory at the same time as we have driven 9% organic growth.

Next slide, please. Strong growth in the third quarter. Let me come back to market and the market outlook in a minute. But first, let me try to clarify where the growth comes from. From a geo perspective, the main growth comes from Sweden, being our largest market and continue to lead the way in market recovery with a 10% growth in the quarter. Disposable income is on the rise and a fairly stable housing transaction market gives positive momentum. We also, unchanged, see a strong sales development in the important markets of Norway being super strong with a 16% growth and Germany with a 6% growth. Germany, still a challenging market, but where we see positive signs and growth primarily driven by successful geographic expansion in many of our entities.

The most challenging of our key markets is unchanged Finland, which trails our other markets in recovery. Considering this, we are proud to report growth and are confident that we have taken market share also in the Finnish market. From a category perspective, the main growth comes from continued strong sales development in the Bathroom category as well as in the Furniture segment, driven primarily -- partly by our revamped entry-level assortment in HFM in combination with the well-executed campaigns in Value Home during the Black Month period.

We also, and more surprisingly, saw strong growth in the Garden category. In the Garden category, quarter experienced strong sales development and big volumes of big ticket items as automowers. Considering this was late in the fall, it is very surprising to see a strong development in this category. This driven by a tech shift in automowers from sling-based to satellite-based navigation and thereby enabling new brands, primarily from China to enter the market. The new market entrants' main sales driver being significantly lower entry-level price points. And with the new lower price points, the addressable market for this type of products expands considerably.

Next slide, please. Coming back to the market and our outlook. Our view is that the market continued to strengthen during the fourth quarter, and it has strengthened gradually during the whole year with some minor differences between the quarters. Looking forward, we have a positive outlook for the market also for the coming year. The key drivers of demand in our categories is disposable income and housing transactions. If we start with Sweden, which is our largest market, given what we know, we expect to see substantial improvements in disposable income for our key target group in 2026, primarily driven by tax income reductions, including the [indiscernible] and other tax benefits in combination with the VAT reduction on food. The result is a substantial increase in disposable income that we are confident will have a positive effect on demand in our categories.

The other key driver of demand in our category is the number of transactions in the housing market. This has developed positively in the last 2 years, and we assess that it will be further fueled in 2026 by the easing of the amortization rules in April of this year. BHG also benefits from the structural migration from off-line retail to the online channel and in our categories as well as compared to other more online mature markets, penetration is still low, and we foresee several years of the online channel growing faster than physical retail. Also, with the introduction of AI-enabled search, the advantages of buying online versus physical retail is even further improved, which we believe will continue to increase the online penetration even further. In short, we have a continued positive outlook for demand in 2026.

Next slide, please. Looking forward, we are since 1 year now out of the restructuring phase, and we are firmly executing our strategy for profitable growth. Our growth drivers is driven by 2 layers of external growth factors. As mentioned, the total market is back in growth mode. Online penetration still low in our categories and set to continue to increase. On top of these 2 external growth drivers, we have 3 layers of internal growth drivers: Operational excellence, strategic initiatives and M&A, which I will expand on in a minute.

Next slide, please. The first and most fundamental growth layer, operational excellence, the daily grind of being a retailer, the constant work of assortment, product and pricing, a tireless job being executed every day by management in our group companies. As a retailer, never to forget, you are never better than your offering to your chosen target group. Regardless of all else, without the right product and the right price, you will never win. Customer acquisition and making sure that the customer you acquire is a positive experience all through the customer journey and thereby securing customer retention.

Efficient, data-driven customer acquisition has, over the last years, been primarily about optimizing for the Google algorithm, but is now increasingly also about optimizing your business for the AI-driven language models as ChatGPT. This is something we are currently focusing a lot of our thoughts and efforts on, and we can already now see the benefits of these efforts. In this layer of growth, we also add the important growth levers of category growth and product expansion as well as geo expansion into new markets and customer segment expansion. How can we extend our target group. In all our businesses, we are driving at least 1 of these growth drivers and in many, 2 or 3 in combination.

Next slide, please. The second growth layer we call strategic initiatives. This is strategic development areas that we have identified where we, from group, try to support our businesses to secure competitiveness. These areas vary over time and during their reconstruction phase, there was, as you know, much about consolidation and inventory reduction. Now in the current phase, our main focus lies in the key priorities of unique assortment, cost structure as a strategic advantage, AI and data and additional revenue streams with a current focus on Retail Media.

Let me take a minute to expand on these 4 strategic initiatives to secure competitiveness and growth in our platforms. Unique assortment, historically often referred to as private label. Uniqueness in offering is the only way to secure not selling the exact same product as your competitors, only competing with price. Uniqueness is a key driver on pricing power as it is the only way to avoid direct price competition and secure gross margin improvements. In the changing AI landscape and with the introduction of AI agent-based buying, uniqueness in assortment also increasingly becomes strategically important to long-term secure a strong and relevant position.

Cost structure as a strategic advantage has historically been a part of how BHG sustains market leadership and has helped us to stay profitable also in challenging times. But not only seeing cost structure as a way to increase profit, but also as a way to secure strategic advantage. A superior cost structure is what enables the best offer to the consumer. And over time, this will be the strongest competitive advantage you can have. Long term, those who can afford to give the best offer to the consumer and still make a profit will be the winners.

AI and data. Between our platforms, we have vast amounts of data. And with the use of AI, we are working on how to leverage this to drive growth, efficiency and customer experience. We have already implemented several AI initiatives and have even more in the pipeline. We today use AI-powered tools for tasks such as product upload, customer service, marketing and CRM. And there's a large number of tools already available through external services that we utilize. But maybe even more exciting is the work that we are doing to develop tailor-made AI agents at surprisingly low cost levels to enhance customer experience and growth as well as driving efficiencies.

And last, additional revenue streams, basically using the traffic we have to our site to create new revenue streams. Our current focus lies within retail media, using the traffic to our sites to sell media, primarily to our existing suppliers, but also externally. This is something we are already doing primarily in the Bygghemma platform, but where we are now taking the next step to professionalize and expand this to more of our platforms.

Next slide, please. The last growth layer is M&A. M&A is and has always been a key part of driving growth and profitability for BHG. We have been less active with this through the consolidation phase, but now with a stronger financial position, it is back up in focus. Our current M&A strategy is built on the foundation of bolt-on acquisitions to fuel growth, largely through assortment expansion in our existing platforms with limited risk. This rather than larger platform acquisitions. A more proactive approach where we have done the job to define what we are looking to acquire in what platforms acquisitions are valid and what M&A targets we are looking for. Staying strategically and financially disciplined with a number of preset criterias in terms of business models and profitability levels to be in place if an acquisition is to be considered.

Thanks. And with this, I will leave it to Jesper to deep dive on the numbers.

Thank you, Gustaf, and Slide 10, please. With Q4 and therefore, the full year behind us, we can conclude that 2025 represented a significant step in the right direction towards delivering profitability in line with our financial targets. We have now improved profitability for 9 consecutive quarters and delivered growth for the past 5 quarters. For the full year, organic growth amounted to 9.4% and adjusted EBIT margin came in at 3.7%, an improvement of more than 1 percentage point. This underlines what Gustaf has already said, we have clearly entered a phase of profitable growth.

Turning now to Page 11 and sales development. We are pleased to deliver double-digit organic growth again this quarter, building on last quarter's momentum. Net sales increased by 5%, reaching SEK 3.0 billion and organic growth was 10.7%. From a market perspective, we continue to perform very well in our largest market, Sweden, where we grew 10%. Among other major markets, Norway delivered the strongest performance during the quarter. Across the segments, Value Home stands out with organic growth of 16%, driven by a very strong value proposition in sofas and beds.

Turning now to Page 12 and profitability. As already said, profitability has improved year-on-year for 9 consecutive quarters. This quarter, earnings improved by SEK 51 million or 48% year-over-year, driven by strong growth, improved gross margin and effective cost control. Adjusted EBIT amounted to SEK 158 million in the second quarter, corresponding to an EBIT margin of 5.2%. Most notably, all 3 segments improved both earnings and margin compared to last year.

Moving on to Slide 13 and the EBIT bridge. Our EBIT margin improved by 1.5 percentage points in the quarter. As has been the story throughout the year, also in this quarter, the improvement in profitability is driven by strong growth, combined with solid cost control, providing scale on fixed costs as well as by efficiency gains in direct selling costs. In addition, we saw a positive contribution from product margin this quarter. After margin headwinds in the first 3 quarters, several initiatives started to pay off, including improved planning for the Black Month campaign period and more efficient price matching. That said, gross margin management is continuous work. Price pressure will not disappear, and we remain focused on striking the right balance between growth and profitability. All in all, our EBIT margin amounted to 5.2% in the quarter.

Slide 14 and cash flow, please. Cash flow from operating activities amounted to SEK 371 million, driven by EBITDA and a positive working capital development, in turn driven by reduced inventory levels in line with our seasonal profile. The right-hand graph showing the development in liquidity walks us through the starting period position of SEK 473 million, adding the cash flow from operations and the impact of investing activities and finally, deducting the financing activities, which are primarily related to amortization of both the revolving credit facility and leasing liabilities, but also include interest payments, bringing us to the period end SEK 301 million of liquidity at hand.

Slide 15, please. The group's net debt amounted to SEK 1.0 billion at the end of the quarter and net debt in relation to LTM adjusted EBITDA ended at 2.4x, meaning that I, for the first time in many years, can add in line with our financial targets.

A quick reminder on seasonality. Our working capital position is typically strongest at the end of Q4 and then reverses in Q1, which means leverage and cash flow will temporarily move in the opposite direction. On top of our liquidity at hand, we had unutilized credit facilities at the end of the quarter of SEK 1 billion. Acquisition-related liabilities amounted to SEK 236 million at the end of the quarter, of which we assesses SEK 85 million to be paid in '26 and another SEK 26 million to be paid in 2027.

With that, I will hand it back over to Gustaf to summarize and conclude.

Thank you very much, Jesper. Next slide, please. Now let me do my best to try and summarize this. We are proud of what we have achieved in 2025. We have delivered on what we set out to do, driving 9% organic growth, maintaining our cost levels and thereby summarizing a plus 50% profitability improvement over the full year. In the quarter, we have delivered double-digit growth with growth and profitability improvements in all 3 business units and a total of 48% profitability improvement.

The market has improved in 2025, and we have a bright outlook also for the coming year, driven primarily by increased disposable income. The structural shift from offline to the online channel, we assess will continue and now further fueled by AI-based search, giving even further advantages for online-based buying. We have a clear and defined strategy in place that we are firmly executing on with focus on operational excellence, a number of defined strategic initiatives and further fueled by M&A to continue driving profitable growth. I am more confident than ever that we are on the right path to achieving our targeted profit levels of first 5% and then on to the 7% EBIT margin we have in our financial goals.

I would like to end this presentation by inviting you all to Digital Capital Markets Day on the 19th of March. There, we will have plenty of time to expand on the group strategy and the long-term development. Looking forward to see you all. Thank you very much for listening. And now with the support of Jesper and Jakob, we will do our very best to answer your questions. Thank you.

[Operator Instructions] The next question comes from Niklas Ekman from DNB Carnegie.

Can I start asking you when you talk about a positive outlook for 2026. First of all, I assume that this is also a reflection of your current trading here in January. Otherwise, you wouldn't say that. And can you elaborate a little bit on the strength of a potential sales in '26? Because now you've had strong growth for a couple of quarters on very easy comparisons, but you now start to face much tougher comparisons in the year ahead. So do you think that there is still a potential for you to continue to grow around 10%? Or are you expecting a slowdown simply based on the tough comparisons? That's my first question.

Thank you, Niklas. Gustaf here. First, I should say that I will not comment on current trading, and you know that. And as you also know, we don't do any forward-looking statements. But I think it's relevant to sort of conclude that we now have 5 quarters of growth. And we should also highlight that in the Q4 now was the first quarter where we actually were meeting growth as well. So as you say, the comps are getting tougher, but they were quite tough now also in the last quarter of 2025, and we still delivered the 10%.

So looking forward, yes, with what we see in disposable income improvements and housing transactions, which we believe will happen with the easing of the amortization, we still have a positive outlook. But as I said before, we don't give any guidance on levels of that, and it's also very hard to do. But we have an unchanged, a very positive outlook looking forward into '26, and we believe in continued growth, both in the market and our ability to continue to overdeliver in terms of taking market share.

Very good. Can I continue on margins? You mentioned here your 5% margin target from your last Capital Markets Day. I mean I'm just curious now, you've seen a margin improvement of more than 1 percentage point in '25. If that continues in '26, you should be able to reach it by the end of '26. Do you think that's likely? And is that -- would you say that, that is your ambition? Or do you think that it will take a little bit longer?

As you know, we don't give any forward-looking guidance. But I think we come back to the fact that we have now delivered profitability improvements for 9 consecutive quarters. So we are definitely on the right path to achieving the 5% and then on to the 7%. We have not defined exactly when.

Fair enough. Fair enough. Third question here on resumed M&A. As you mentioned here, you're now finally down to your target of net debt below 2.5x EBITDA. But that's in a seasonally strong quarter, I guess, from a cash flow perspective. If you resume M&A, are you willing to go temporarily above 2.5x again? Or are you assuming now a more prudent approach to M&A going forward?

I think we should start by saying that we are super happy that we are [indiscernible] capital structure goal. So happy with that. We should also say that we remain when it comes to M&A. I think we have defined a very clear strategy where we're talking about bolt-ons rather than platform acquisitions. And where we also have defined what we -- how to stay financially disciplined to make sure that we remain prudent within these levels.

And as you said, Niklas, you know that leverage will likely be higher at the end of Q1 due to seasonality.

But I think we should say that we are on a path to lower our net debt level, and we aim to continue that path. Then there could be exceptions for smaller acquisitions within that path. But the path to continue to lower it is unchanged.

Very clear. And just a final question. I note that your noncontrolling interests have been quite significant, both in Q4 and in previous quarters. It was SEK 15 million in this quarter, SEK 52 million for the full year, and that's around 1/4 of your earnings that goes to noncontrolling interest. Why is this number so high given that you have full ownership of the vast majority of assets?

Simply because of the only company being reported as a noncontrolling interest being Furniture1 have had a fantastic 2025. And it is a fantastic business that has developed from some SEK 100 million in turnover in 2018 to above SEK 1 billion last year. So it's a fantastic business. They had a fantastic '25, but their share of the group will likely come down as the rest of the group is improving faster.

The next question comes from Benjamin Wahlstedt from ABGSC..

A couple of questions from me as well. So first of all, Value Home reported the best product margin in quite some time. And I was wondering if you could give any additional flavor about this. Are we seeing a positive FX impact already? Or is this purely a higher private label share?

Gustaf here. Benjamin, I would say it's a combination of the 2. There is an FX effect from the lower U.S. dollar that has a positive effect in Value Home. But we've also, as you know, worked very hard on our unique assortments, and it's one of our key strategic initiatives going forward. And I think that work in Value Home, where we have the biggest share of unique assortment is also paying off in this quarter.

And as Gustaf said, it's roughly 0.5 percentage point in Value Home, but it's a negligible effect on the group.

So 0.5 percentage point from FX?

Yes.

Yes. Perfect. And then I was wondering if you could say anything more generally about what you've seen in terms of the competitive pressure or campaign pressure perhaps. Premium Living also reported a strong gross margin, and that's typically the most campaign-sensitive segment, right?

Price pressure is always tough. We're living in a very price competitive world. We have price transparency, if anything, increasing. So I think the result is that -- our increased product margin is a result of a really good job working price matching and working with our unique assortment. But I would not say that the price pressure has eased in any way. As we have said in the past, there was a period where there was lot of excess inventory in the market and then price pressure was higher. But I think since the normalization of price pressure -- of inventory, we have roughly had the same and high price pressure.

Perfect. And then maybe finally, I understand that it's still sort of early days, but I would like to ask for your views on AI shopping or ask you to drill down a bit into that. You've been fairly explicit in that you've previously strived to own Google Search. And now you know it's like Google Search is gradually being replaced by GPT search or AI search. And my question is, how will you win GPT search? Is it possible to win GPT search in the way you've won Google Search previously?

Yes, we believe so. And as I mentioned, we're spending quite a lot of time and resources right now on something we call AI visibility, which is basically optimizing traffic acquisition for the AI-based language model searches, both ChatGPT and others. We are doing that, and we have a number of criteria that needs to be fulfilled in order to improve on that. But we should also say that the main criteria for Google Search, which is basically having data, having well-structured data and having that well-structured data available is also valid for AI-based searching. But we have a program, which we're running through all our businesses right now of how we can improve on AI visibility. We're seeing good progress on that. And there was a small test recently where we came out on top. I think the only ones we had ahead of us were actually the pharmacies. But after that Bygghemma was the first mentioned business when it comes to AI visibility. So we're doing a lot of job on there, and there's definitely things to be done, and we have a good confidence that we could be strong also in this field just as we have been and are on Google.

The next question comes from Daniel Schmidt from Danske Bank.

Coming back maybe to the margin question earlier and your target of reaching 5%. If I remember correctly, back in May '24 when you had the last CMD, you didn't mention that you should get to 5% without the help of the market. Now we have seen market support in the past couple of quarters, and you expect that to continue to be the case for '26. So isn't it very reasonable that you should get to 5% in '26? Or am I getting anything wrong here?

I don't think you're getting anything wrong, but we don't want to give any market forward-looking guidance. As you know, I don't plan to do that now either. But we are definitely, as you say, we see market normalization, and we think we have the market now to achieve the 5% and then move on to the 7% that we have in the financial targets. But we are continuously working on improving on all numbers in our profit and loss from growth to margin, direct selling cost and SG&A in order to reach the 5%. But we are at large on plan, but we don't disclose when we are to reach the 5%.

Is there any sort of external factors that have changed a lot, you think, since May '24 in terms of competitive pressure, price pressure or anything like that, that you can't really control?

I think the only thing I can think of is AI-based search and potentially with what we see right now, price transparency that continues to develop in the direction of increased price transparency and that drives price pressure.

Okay. And then maybe just also coming back to the Swedish market, and you're right about it. And of course, we had the hike in ROT-avdrag. and now sort of that's being normalized back to 30% as of 1st of January. And you mentioned that it has had a positive impact, but not a decisive impact. How do you measure that? Is that sort of something that you're very sort of confident that, that didn't have a big impact? Or is that a guesstimate? Or how do you think about that?

It would always be a guesstimate based on data points, but this is our best guesstimate. And I think it's important to say that it has had a positive effect, but it's also important to acknowledge that we estimate that roughly 15% of our sales and assortment is valid to the ROT-avdrag. So the majority of our business is clearly unaffected. And I should also mention that the positive development we see right now is not only in Sweden, we see an even stronger positive development in the Norwegian market and also positive developments both in rest of Europe and Germany, which makes us conclude that the ROT-avdrag has an effect, but it's not material and it stands for a fairly small part of our assortment.

All right. Okay, good. And just maybe for Jesper, could you repeat, maybe I missed it, what you did and what you said about earn-outs, was it SEK 85 million, I think you wrote in '26? And then another -- what was the number for '27?

SEK 26 million for '27.

Okay. And out of the total, then that gets you to SEK 110 million or something like that, that leaves another SEK 125 million. And is that all in '28?

Most likely in '28, yes.

[Operator Instructions] The next question comes from Johan Fred from Seb.

First one on the trading in the quarter as you don't comment on any forward-looking trading update. So you stated that market conditions strengthened during Q4 and that Back Month was record-breaking. How did December trade relative to November and October?

So in the fourth quarter, we saw a good November and a somewhat smaller October and December, in line with each other.

And I think we can mention that what is happening in the market is that November is sort of stealing sales from October and December because of the very strong campaign message there. So especially, I think what we're seeing currently, and I think that's in most categories that a lot of the historical sort of Christmas shopping that was done in December has now been moved to the Black Month period of November.

Got it. And returning to Premium Living. Organic growth was the slowest out of the group. Could you elaborate on sort of the sales development for the segment during the quarter? And given the very strong margin reported in Q4, was there a trade-off between sort of higher profitability and growth?

I think we should say that the sales pattern was similar to what I just spoke about and maybe even stronger in this category where there's quite a lot of gifting where sort of sales has moved from December to November. So that same pattern is relevant here. And with that said, there's always a trade-off between margin and volume, and we always try to strike that balance right. I must say that I'm very happy with the margin development in Premium Living because that is the one business unit where we have had the toughest in the quarters before this in achieving margin levels we wanted to achieve. So very happy with achieving those margin levels and being able to sort of reverse the trend on product margin. And that always comes with some sort of effect on volume. And I think we should also remember that last year, we had a very strong development in premium living in this quarter.

Very clear. And returning to the question around margins, and you've maintained cost levels in 2025. Just sort of a housekeeping question. What do you expect for cost inflation in 2026 on personnel, logistics, marketing, et cetera? What are your base assumptions?

Our base assumption is that cost increase will be in line with inflation.

On all items, including sort of marketing.

I mean, I think roughly, it will be in that level on all items, yes. There'll be a little bit less on lease cost because that is not increasing as much and probably a little bit more on others. But what we're making sure is that we maintain the cost levels we have worked so hard to achieve and make sure that they do not grow more than inflation and thereby get leverage on profitability from growth.

Got it. Very clear. And a final one, if I may, on gross margins. So of course, the stronger SEK versus the dollar and the euro should be a tailwind in 2026, assuming, of course, the current FX rates hold. Could you, by any chance, sort of quantify the impact on gross margin year-over-year from favorable FX? And when, in terms of timing, do you expect to see this in the numbers?

I will not quantify the effect. But if I give you any numbers, the total volume purchased in U.S. dollars is roughly USD 60 million. And the effect falls into mainly Q2 and Q3.

There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

Thank you very much for listening in. Thank you for valuable questions as well. Looking forward to see you all on the Capital Markets Day. Thank you very much.

Hi, and welcome. My name is Gustaf Ohrn, CEO of BHG. I'm here together with Jesper Flemme, CFO, to present our Q3 report. We will also be available after the presentation to do our best to answer your questions. Slide 2, please. I'm happy to present another strong quarter from BHG, double-digit growth for the first time in a long time and a step-up in profitability improvement. Really pleased to summarize that we have delivered on what we set out to do.

We have taken market share in a strengthening market, maintained our cost levels and managed to leverage our fixed cost into profitability improvement, continued to improve customer satisfaction. Slide 3, please. For the fourth consecutive quarter, we continue to show organic growth this quarter with a significant step-up in growth levels, delivering a 13% organic growth and a double-digit growth in all 3 business units. We are confident that we, with this has taken market share during the quarter. We also report significantly improved profitability in the quarter, this quarter reporting SEK 92 million in earnings, which corresponds to a 76% improvement versus previous year.

The improvement in earnings comes primarily from top-line growth in combination with direct selling costs and SG&A well in control, creating leverage for top line and improving profitability and demonstrating the scalability of our model. We report a strong positive cash flow of SEK 52 million following the normal seasonal pattern. Slide 4, please. A few words about the market development and our forward-looking outlook. This slide is from the central bank of Sweden and illustrating Sweden, our largest market and the market we unchanged see leading the way in market recovery and also serving as an example of the development we expect to see in most other markets with some time lag.

Disposable income has improved during the first 3 quarters of this year, driven primarily by interest levels coming down in combination with tax subsidies such as the increased ROT-avdrag. Also, development in number of housing transactions has developed positively. Disposable income and housing transactions are 2 of the strongest drivers of demand in our categories, and our assessment is that demand has continued to improve compared to last year and that the market continued to strengthen also in the third quarter.

Our forward-looking outlook remains unchanged. We foresee continued strengthening market driven primarily by disposable income improvements as seen here on the graph. In addition to positive total market development, we assess that the long-term trend of migration from the physical channel to the digital channel continues for the foreseeable future in our categories. Slide 5, please. Looking back, we all remember the crazy pandemic growth and then the challenging times following the pandemic and the consumer downturn.

However, if we focus on the last 2 years, we have seen profit improvement for 8 consecutive quarters and growth in the last 4 quarters, this quarter with a significant increase in both growth rate and profitability. We have left what we call the restructuring phase and now execute our strategy with full focus on the profitable growth phase. Slide 6, please. Strong growth in the third quarter. Let me try to further clarify where this growth comes from.

From a geo perspective, the main growth comes from Sweden being our largest market and continues to lead the way in market recovery with disposable income on the rise and showing solid growth. We also see an unchanged strong sales development in the important markets of Norway and Germany, driven by successful geographic expansion in many of our entities.

The most challenging of our key markets is still Finland, which trails our other main markets in recovery. Considering this, we are proud to report a 7% organic growth in Finland for the quarter. From a category perspective, the main growth comes from strong sales development in the bathroom category, most likely the tax subsidy in the Swedish market of the increased ROT-avdrag has an unquantified positive effect.

With that said, we also see an even higher growth rate in the Norwegian market in the bathroom category, indicating that there is also other positive contributing factors. We also see a strong positive sales momentum in categories of indoor furnishing, driven partly by the revamped entry-level assortment in HFM and also in categories at home decoration and garden. Slide 7, please. In an effort to clarify our forward-looking growth strategy, we have defined 5 layers of growth. First, 2 external factors. The total market is back to growth after a long period of negative development, driven, as mentioned, by disposable income, housing transactions, et cetera.

And two, online penetration remains low in our categories. The online market has grown faster than the physical retail market, and we assess that it will continue to do so for a foreseeable future. On top of the external market-driven factors, we have 3 layers of international growth factors in our strategy. The first and most important layer is what we call operational excellence. The continuous work our platforms are doing every day with their operational focus, the relentless and constant work of being a retailer, working assortment and product, pricing, customer acquisition and securing customer retention through customer focus, et cetera.

In this, we also include the operational growth drivers of category, geography and customer segment expansion. The second layer, which we call strategic initiatives where we from group is very active, driving initiatives that we see as key to secure competitive advantage for our businesses. This area includes areas such as unique assortment, additional revenue streams, securing competitive cost structure and data and AI initiatives, and I will come back to this in a minute.

The last layer of growth is M&A. This has been pretty much on hold the last few years, even if we did 2 smaller acquisitions last year. But we are a company partly built from M&A, and it is unchanged and important growth tool for us. The key words of our current M&A strategy are bolt-on acquisitions to support growth in our platforms, this rather than platform acquisitions and a disciplined proactive approach, having a clear view of what we are looking to acquire, filling the white spots that we have identified and staying financially as well as strategically and structurally disciplined to our defined strategy.

Before I hand it over to Jesper, let me spend 1 minute doubling down on the second layer of strategic initiatives. This is a key part of our strategy and where we put a lot of our current focus. Let's start with our main view of the competitive landscape. We believe that price transparency will continue to drive price and gross margin pressure. As a consequence, much of our strategic and tactical focus revolves around this and how to best address it.

One, unique assortment, historically labeled private label, but comes in many shapes and forms, where the key advantage that we wish to secure is avoiding only competing on price from selling the exact same product as other vendors. Unique assortment often also having the advantage of taking out the middleman and thereby securing a higher gross margin. Two, additional revenue streams. There are several potential additional revenue streams to explore, but our current main focus is within what is often referred to as retail media.

In short, securing media revenues on the traffic we have to our sites. This being a key enabler to a strong customer offer and thereby a growth driver. Three, cost structure as a strategic advantage. If you, as we do, believe price competition is a key factor, then having a superior cost structure is what enables the best offer to the consumer and will long term be the strongest competitive advantage you can have.

We drive this with a focus on automation, efficiency and cost governance. And finally, what we call data and tech. We are a tech-driven business. There are so many ways to use AI in our business. We have a number of initiatives already implemented or in the process of being implemented in all 3 business units, driving both growth, efficiency and customer experience.

And with that, I will leave the word to Jesper.

Thank you, Gustaf. And Slide 8, please. In Q3, we delivered double-digit organic growth for the first time since Q2 2021, driven by strong performance across all 3 segments. Net sales increased 10%, reaching SEK 2.6 billion and organic growth was 13.4%. The strongest acceleration in growth compared to the previous quarter was seen in the Home Improvement and Premium Living segments. In both segments, we're seeing increased demand in our largest market, Sweden, while Premium Living also recorded a sharp growth uptick in Germany.

Turning now to Page 9 and profitability. Profitability improved for the eighth consecutive quarter. This quarter, profit improved by SEK 40 million, or 76% year-over-year, driven by improvements in all 3 segments. Adjusted EBIT amounted to SEK 92 million in the quarter, corresponding to an EBIT margin of 3.6%. Most notably, all 3 segments improved earnings by over 50% and margins by more than 1.5 percentage points.

Moving on to Slide 10 and the EBIT bridge. Our EBIT margin improved by 1.3 percentage points in the quarter. Simply put, the improvement in profitability is driven by strong growth combined with solid cost control, providing scale on fixed costs as well as by efficiency gains in direct selling costs. The negative impact on Product margin comes from the Home Improvement segment and is driven by: one, the divestment of IP-Agency; and two, clearance of seasonal products towards the end of the outer season to maintain healthy inventory levels. All in all, our EBIT margin amounted to 3.6% in the quarter.

Slide 11 and cash flow, please. Strong EBITDA, offset by a seasonal negative working capital effect resulted in a cash flow from operating activities of SEK 52 million. The development in working capital was mainly driven by supplier payments following the seasonally high sales in Q2. The right-hand graph showing the development in liquidity walks us through the starting period position of SEK 473 million, adding the cash flow from operations and the impact of investing activities and finally, deducting the financing activities, which are primarily related to amortization of leasing liabilities that also include interest payments, bringing us to the period end SEK 262 million of liquidity at hand.

Slide 12, please. The group's net debt amounted to SEK 1.2 billion at the end of quarter, and net debt in relation to LTM adjusted EBITDA ended at 3.4x. On top of our liquidity at hand, we had unutilized credit facilities at the end of the quarter of SEK 800 million. Acquisition-related liabilities amounted to SEK 204 million at the end of the quarter. Cash flow-wise, we have no more payments this year and around SEK 100 million in 2026 and 2027, respectively.

With that, I will hand back over to you, Gustaf to summarize and conclude.

Thanks very much, Jesper. Slide 13, please. Now let me try to summarize this. Growth rate accelerating, double-digit growth in all 3 business units, increasing profitability with a 76% improvement versus last year. This being the eighth consecutive quarter with earnings improvements. We have seen market recovery for the first 3 quarters of this year, and our forward-looking outlook remains unchanged. We expect the continued market recovery driven primarily by improvement in disposable income.

And finally, we have done what we set out to do. We have delivered on what we set out to do. Our focus remains unchanged to deliver profitable growth, targeting the 7% EBIT margin we have in our financial goals. Thank you very much for listening, and now happy to do our very best to answer your questions.

[Operator Instructions] The next question comes from Benjamin Wahlstedt from ABGSC.

So 3 questions, if I may. First of all, you referred to an increased market share. I was wondering if you could give us an idea of what market you're referring to and what that market grew, please?

Benjamin, Gustaf here. I'll do my best. We are trying to follow all the data points we have. And I think we're getting better and better data points trying to follow market share, both on geography level and on category level. And most of those data points that we study, we're confident that we have taken market share in this quarter.

I was wondering as well if you could specify when demand picked up? Did any one month stand out in terms of growth?

I wouldn't really say that. I think if we look back at the beginning -- since the beginning of the year, as you recall, we had a very strong first quarter. We got sort of the warmer weather quite early, and then we had a tougher beginning of spring and the second half of the second quarter was definitely an improvement. And I think through the third quarter, it has been fairly flat with no larger variations. So we're very happy that it has continued to improve and continue to stay on a high level even if there were some seasonal changes primarily in the second quarter.

Perfect. And finally, I was wondering if you could comment on any FX or shipping-related gross margin support, thinking specifically about the weak dollar perhaps in FX and when we should expect the numbers, please?

No. Yes, we're here. I don't think there's any major impact to the numbers. And to put it very simple, I mean, the products sold in Q3 has been purchased in previous periods. So FX hasn't affected the gross margin that much.

And you don't expect any support going forward either?

I mean, looking into the coming outdoor season in '26, of course, if the dollar stays on this level, I would expect a positive impact.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any written questions and closing comments.

No further questions, and we have no written questions. So with that, I say thank you very much for listening, and wish you all a great weekend. Thank you.