Good morning, ladies and gentlemen, and welcome to the presentation of the second quarter results for TCM Group. As most of you will know, I took over as CEO of TCM Group on August 1st, succeeding Torben Paulin.

I'm happy to have joined TCM Group and returned to the kitchen industry. I've actually followed TCM Group from the sidelines since my time at Kvik started back in 2013.

Presenters today are our interim CFO, Hans Barslund, and myself, Jens-Peter Poulsen, as CEO, and we'll comment on the business and the financial results, after which we'll hand over to the operator for the Q&A session. Let's start the presentation and turn to page 2 for the business update.

I don't see the presentation.

No, but it's there, you can just continue. Sales in the second quarter developed broadly in line with our expectations.

Total revenue for the quarter increased 7.4% year-on-year to 375 million Danish, corresponding to an organic growth of 0.6%. Revenue was negatively impacted by lower order intake at the end of Q1 and the start of Q2.

Order intake regained momentum during the last two months of the quarter. Revenue in Norway increased by 22.7% compared to Q2 2025, reaching 80 million Danish, driven by an improvement in trading conditions following a period of very low activity in the market.

We also managed to renegotiate our agreement with Optimera, our exclusive Aubo partner in Norway, extending the term from 3 to 5 years. Overall, order intake in the quarter was significantly higher than last year in both B2B and B2C.

A sales price increase effective from 1st of July brought some orders forward, and we enter the second half of the year with a strong order book. Gross margin was broadly stable at 23.8%, up from 23.7% in Q2 last year.

Please turn to page 3. Some financial headlines for the quarter: reported revenue was 375 million Danish, corresponding to a revenue growth of 7.4%, here of 0.6% organic.

Adjusted EBITA was 32.2 million Danish compared to 36.1 million Danish in Q2 last year. Adjusted EBITA margin was 8.6% compared to 10.3% in Q2 last year.

Net working capital ratio was -2.3% compared to -0.7% last year. Cash conversion was 107%, and we'll now dive into the numbers in the coming slides.

Please turn to page 4. As mentioned, revenue in Q2 increased organically by 0.6% with a year-on-year increase of 7.4%, driven by the addition of Celebert and the retail stores.

Revenue in Denmark, our main market, at 78.1% of group revenue, increased by 4.2% year-on-year, though with an organic decline of 4.1%, reflecting the softer order intake at the end of Q1 and the start of Q2. The Danish market regained though traction towards the end of the quarter.

Revenue in Norway increased by 22.7% to 80 million Danish against a weak reference period last year. The share of lower-margin third-party sales increased to 25% in Q2, up from 23% in Q1.

I'll now hand over to Hans Barslund. Please turn to page 5.

Thank you, Jens-Peter. Gross margin was 23.8% in Q2, a minor improvement to the 23.7% in Q2 last year.

The gross margin ratio is affected by two opposing effects. Rising oil prices increase the cost of raw materials and freight, which has a negative effect on the margin.

This was offset by a higher B2C share and our ongoing internal efficiency projects with a positive effect on the margin. Year to date, gross margin increased to 23.5% compared to 22.5% last year.

Operating expenses increased 23% to 62.8 million or 16.8% of the revenue, up from 14.7% last year. This is primarily a consequence of the inclusion of Celebert and the retail stores acquired during the last year, as well as additional overhead related to organizational upgrades and marketing platform enhancements in Celebert as we move towards a more self-service model there.

In addition to that, we have had extra costs in relation to the ongoing ERP project. Adjusted EBITA in Q2 was 32.2 million compared to 36.1 million in the same period last year, corresponding to an adjusted EBITA margin of 8.6% against 10.3% last year.

Adjusted EBITA year to date was 58.4 million compared to 55.7 million last year. We recorded non-recurring items of 1.5 million in the quarter relating to the change in management.

There was no non-recurring items in the same period last year. Please turn to page 6.

Net working capital at the end of Q2 was -31.5 million compared to -9.3 million last year, corresponding to a net working capital ratio of -2.3% against -0.7% last year. If you break it down, then inventories increased by 11 million from acquisition of Celebert and one retail store, combined with higher factory inventories to support increased demand.

Trade and other receivables actually decreased despite the higher revenue. Operating liabilities increased by 29 million, primarily due to higher trade payables, partly a timing effect around the quarter end and therefore not a permanent nature.

Net interest-bearing debt amounted to 397 million at the end of Q2 compared to 343 million last year. The increase is primarily a consequence of the Celebert acquisition at the end of last year.

As a reminder, the dividend of 46 million approved at our annual general meeting in April was paid out during the quarter and is reflected in the net interest-bearing debt development. The leverage ratio increased to 2.7 times at the end of Q2 compared to 2.5 times in the same period last year and remains well within our covenants.

Please turn to page 7. Free cash flow in Q2 was 32 million, essentially in line with Q2 last year.

For the first half of the year, free cash flow was 80 million, a significant improvement compared to 29 million in the same period last year, benefiting from the positive development in the net working capital. CapEx ratio was 1.1% of revenue compared to 1.2% last year.

Year to date, investments amount to 26 million, down from 34 million last year. The investment is primarily related to the ongoing ERP project.

Cash conversion measured over the last 12 months was 107%. I'll now hand back to Jens-Peter.

Please turn to page 8.

The results for the first half of 2026, together with a positive development in order intake during the second quarter, provide a positive backdrop for the remainder of the year. That said, we remain mindful of the potential impact of ongoing geopolitical uncertainty, including the situation around the Strait of Hormuz on consumer sentiment and demand.

Taking this into account, we maintain our current guidance for 2026 and TCM Group thus expects full-year revenue in the range of 1.4 to 1.5 million Danish in sales and adjusted EBITA of between 120 and 140 million Danish. Before we conclude our presentation, I'd like to inform you that our new CFO, Esben Triolo Lund, will join TCM as of September 1st.

This concludes our presentation and we'll hand over to the operator for the Q&A session. Please turn to page 9.

Yes, thank you, and of course, welcome to you, Jens-Peter. Looking forward to the dialogue.

A couple of questions from my side. As I understand your description of the order pattern, it was weak in March and April and then strong in May and June.

Just curious on what your sort of interpretation of this volatility is. Why do you think it picked up in May and June?

Of course, the strength and the momentum in May and June, did that continue in July?

Thank you, Kristian, for the warm welcome. I'm very sure that a big impact on the growth in order intake at the end of Q2 was driven by the announced price increase.

We don't know exactly how big a chunk of the increase was attributed to the price increase, but my assessment is it's a big chunk of it. If we look at the market, both B2C and B2B, that has not improved in the period.

The interest development definitely does not support a stronger B2B market. If we look at the development on consumer confidence, especially in Denmark, that remains at a double-digit negative.

Even though it's improved a little bit, it's still hugely negative. It's not the market that's bringing the uplift in the order intake during the quarter, it is mostly the price increase.

Having said that, there's always, of course, movements in our ability to win orders in both segments, B2C and B2B.

That makes sense. Have you then seen orders slow down in July cuz price increases took effect from July 1st, right?

Yes. We are seeing a softer July both because it's the seasonal pattern, of course, but also relative to last year.

I do expect some impact during Q3 as it definitely moved orders in the pipeline forward. I do expect some impact.

However, on the other hand side, there are also here and there positive signals of us winning still in a difficult market during Q3. It's really hard to assess the net impact in Q3.

That makes sense. That brings me to my next question, which is your guidance.

If we look at the implicit guidance for the second half of the year, it implies revenue growth of 7% to 23%. The 7%, I guess, is more or less sort of a continuation of the momentum you had in the first half, but obviously, 23% revenue growth would mean a substantial step-up.

Given that the order strength you refer to more seems like a phasing due to price increases, what brings you any confidence that you can deliver more than 20% growth?

We have not related to the upper end of the spectrum right now, but in the dialogues with the dealers that we have, we have everything from dealers that see a moderate single-digit development to dealers having a strong double-digit development. That's why we maintain the spread on the top-line guidance here, Kristian.

It's really hard to gauge that one.

Okay. One thing is the revenue guidance, obviously, the other thing is the earnings guidance.

Again, if we look at the first half of the year, revenue increased by 80 million, but your adjusted EBITA only increased by 3 million, sort of implying an incremental margin of only 3%. I guess the reason for that low number is a substantial increase in your OPEX.

If you do the same calculation for your implicit guidance for the second half of the year, you would need a incremental margin of 18% to 19%. Obviously, quite a meaningful improvement.

Can you maybe just help me understand the mathematics through the year and especially what you are assuming on the OPEX within your guidance?

Hans, will you pick that up?

It's correct that your calculation, I can confirm that, but we also have to look into that we have some one-off costs or extraordinary costs here in the first half of the year. Then, of course, the addition of Celebert of course will also be a part of the second half of the year.

What you also will see is that our gross margin in the first half year were heavily influenced by the input cost increase. Of course, that will continue into the second part, but there we will see some effects from our sales price increase, we expect our gross margin to improve in the second half of the year.

All right. Maybe just to understand, if I understood you correctly, when you say you had some one-off costs in the first half, does that mean, all things equal, we should expect a lower fixed cost base in the second half of the year or, asked differently, your OPEX

You should expect a lower OPEX ratio in the second part than in the first part.

Okay. That is clear.

Then to your other point around the price increases and the cost pressure. Orders taken at the end of the quarter, they would be booked as revenue in Q3, right?

You will still carry that gross margin pressure into Q3 in your P&L, is that correct?

That's correct.

All right. Excellent.

That was all for me. Thank you.

Thank you, Kristian.

Thank you very much, and hello, Jens-Peter and Hans, and thank you for taking my questions as well. I also have a few.

Going back to the gross margin, obviously, you just mentioned that you expect it to be higher in H2 compared to H1. Given the strong order intake here at the end of Q2, I would expect us to see quite an uptick in gross margin for Q3.

Can you please help elaborate a bit on how you see the gross margins coming in for the two remaining quarters of the year?

If I should answer that, the order book for here end of Q2 some of our business will be at old prices in Q3, and then we'll start to see the effect in Q4 on the price increases. We also business as Celebert and Nettoline and so on is more day-to-day business and selling off the shelves, there we'll see effect on price increases here in Q2 as well.

It's fair to assume that gross margins for Q3 and Q4 are similar, but higher than H1?

Yeah. I see Q3 on level with Q2 and an increase in Q4.

All right. Thanks a lot.

Going back to the price increases that you've implemented here from 1st of July, can you just please reiterate the magnitude of those price increases? Maybe also what the feedback has been from customers and dealers so far?

Has there been any elasticity or any pushback on the price increases?

We've taken a single-digit price increase. We have taken an increase reflecting the raw material development, the development in transportation costs that we're facing, and salary increases due to union negotiations done previously.

That the costs that we have literally faced amount to a level that is equal to the price increase that we have taken. Gauging from market reactions, people are never happy, Anders, for price increases, but I sense some understanding for why it's happening.

Of course, we'll see here and there customers trying to negotiate around it, but it is a real price increase reflecting real cost increases that we are facing, and I expect the market to increase more or less in line with the level of price increase that we have done.

Thank you very much, that was very clear. A final question for me directed to you, Jens-Peter.

I know it's still early days, but now that you've joined on as CEO, are you maybe able to share some of your focus points for the time going forward now that you've started to settle into the role?

This is my 14th day on the job, Anders, it's early days. I'm very happy to have joined.

I see a company with great potential. I'm in the process of meeting clients.

I'm with a client today in Oslo. I'm meeting also the team.

I'm getting acquainted with the factories that we operate, the product range, and all of it. Even though I've been in the industry for 12 years previously and I know quite a lot, there are still quite some differences to where I've landed.

My general feeling is very positive. In terms of things to focus on, then just to give you one idea of it, then the significant uplift in order intake at the end of Q2 of course means we need quite some attention on the supply chain right now to be able to execute this order pipeline without too long of a delivery time for our clients, as well as our partners in the stores.

Supply chain definitely one.

Thanks very much, Jens-Peter. That was all for me and looking forward to the future dialogue.

Thank you.

Yes, thanks for just a follow-up for clarification, just the commentary made on what we should expect for gross margin. You said Q3 should be in line with Q2, and then Q4 should be higher than Q3.

Is that more on like-for-like gross margin? Because there is some seasonality to a gross margin and I assume mix is a big explanation here.

Typically, your gross margin in Q3 is lower than it is in Q2. Just want to make sure that whether that commentary is more on a sort of like-for-like basis within say B2C and B2B or whether it's reported gross margin you are referring to.

It is a like-for-like because of course there is a influence from the production is stopped in July and so on. There's always some effect on that, but that'll be similar from last year.

Okay. Maybe just to follow up because it seems that you've had a positive impact on your gross margin from a mix shift towards B2C.

Based on what you can see now, should that continue in the coming quarters as well?

We see quite a level of B2B in the order pipeline relative to previously, so that will counter a little bit the development that we saw, Kristian, during Q2.

Okay. Nothing else.

Excellent. Thank you for clarifying.

You're welcome.

Thank you very much, everyone, for joining in and showing interest. Thank you for the warm welcome from you.

It's great to be back in the kitchen industry and in TCM Group, where I see a lot of potential going forward. It's not like growth will come by itself in a market that's challenged both in the B2C and B2B segment, but I keep reminding myself and the team that as we only have a certain market share, we don't necessarily need a growing market to drive growth for the group.

We just need to get our act together and perform better relative to competition. I'm happy to be here.

I see great potential and we'll work hard to do our best for the shareholders going forward. Thank you very much for joining in.

Have a great day.