Thank you very much. Good morning, ladies and gentlemen, and welcome to the presentation of the third quarter results for TCM Group.

Today, I, Torben Paulin, the CEO of TCM Group, will be presenting, and I will comment on the business and the financial results, after which I will hand over to the operator for the Q&A session. I would like to share that our new CFO, Jan Bønding Madsen, started in TCM Group 1st of November.

Prior to his assignment with us, he had made other arrangements, and is therefore not joining this call, but will join next time. Let us start the presentation and turn to page two for the business update.

Sales in the third quarter developed in line with our expectations, with growth in both B2B and B2C segments. Total sales in the quarter increased by 4.1% year-on-year to 289 million DKK, corresponding to organic growth of 2.7%.

Norway increased by 7.0% compared to Q3 2024, reaching 51 million DKK, continuing the positive trend from the first two quarters of the year. Order intake developed positively in B2C, and the B2B segment experienced solid growth in the quarter, mainly driven by increased orders from housebuilders, and in line with higher activity in residential new builds.

The gross margin improved in the quarter, gaining one margin point on Q3 last year, driven by higher average selling prices and efficiency gains in the supply chain. Please turn to page three.

Some financial headlines for the quarter. Reported revenue was 289 million DKK, corresponding to a revenue growth of 4.1%, hereof 2.7% organic.

Adjusted EBIT was 17 million DKK compared to 17 million in Q3 last year. Adjusted EBIT margin was 5.8% compared to 6.0% in Q3 last year.

Net working capital ratio was 0.6% compared to 0% last year. Cash conversion was 75%.

I will now go through the financial highlights. Please turn to page four.

As mentioned, revenue in Q3 increased organically by 2.7%, but with an year-on-year increase of 4.1% due to the acquisition of two Svane Køkkenet stores in Aalborg and Hjørring in January 2025. Revenue in Denmark, our main market, accounts for 82% of the group's revenue.

It increased by 3.5% year-on-year, with an organic growth of 1.8%, supported by modest growth in the B2C segment, while segments within B2B also delivered growth during the quarter. Revenue in Norway in Q3 increased by 7% compared to Q3 2024, continuing the positive trend from the first two quarters of the year.

The share of third-party sales was the same as in Q3 last year, 26%. Please turn to page five.

Gross margin rose to 21.4% in Q3 compared to 20.3% in Q3 2024, driven by higher average selling prices and efficiency gains in production and the supply chain. EBIT in Q3 2025 was 17 million compared to 17 million last year, corresponding to an EBIT margin of 5.8% compared to 6.0% in Q3 last year.

The EBIT margin decrease is primarily driven by an increase in SG&A costs due to the increase in employees from the acquisition of retail stores. Depreciation and amortization in Q3 2025 amounted to 9 million DKK, the same as last year.

Please turn to page six. Net working capital end of Q3 was 8 million DKK compared to 1 million last year.

Compared to Q3 2024, net working capital was negatively impacted by an increase in inventories due to the acquisition of the two Svane Køkkenet stores and an Aubo store in Esbjerg and a Nettoline store in Kolding. Net working capital was also negatively impacted by an increase in inventories of certain externally sourced components.

Net interest-bearing debt amounted to 349 million DKK at the end of Q3 2024, compared to 329 million in Q3 last year. The leverage ratio was 2.6 at the end of Q3 compared to 2.8 at the end of Q3 last year.

Please turn to page seven. Free cash flow in Q3 2025 was 4 million DKK compared to 6 million DKK in Q3 last year, negatively impacted by the development in net working capital.

Free cash flow was positively impacted by dividend received from Celebert of 7 million DKK in Q3 2025. Cash conversion ratio measured over 12 months was 75%.

We will now give an update on the Celebert acquisition. Please turn to page eight.

In 2021, we merged TCM Group's online activities in kitchn.dk with Celebert and acquired a 45% stake in the joint business. Now, the majority shareholder has chosen to exercise his put option, TCM Group will acquire the remaining 55%.

Celebert has been a pioneer in online retailing of kitchens, bathroom interiors, wardrobe solutions, and white goods, operating kitchn.dk, billigskabe.dk, and justwood.dk. The purchase price is 80 million DKK.

The Danish competition authorities have approved the transaction, and it is closed today, the 25th of November 2025. The acquisition give us full ownership, strengthen our digital position, and supports our multichannel growth strategy.

Please turn to page nine for the financial outlook. Considering the results for the first nine months of the year and the current trend in order intake during Q3, TCM Group is narrowing its full-year 2025 guidance.

The company now expects revenue in the range of 1 billion 260 million till 1 billion 280 million DKK, previously 1.25 to 1.3 billion DKK, and adjusted EBIT in the range of 93 till 100 million DKK, previously 90 till 110 million DKK. TCM takes full ownership of Celebert 25th of November 2025.

Celebert will be included in our consolidated figures for December month. It is assessed to have an insignificant effect on the 2025 TCM figures.

This concludes our presentation, and we will now hand over to the operator for the Q&A session.

Yes, thank you. I have a couple of questions.

Firstly, if we look at revenue, it's up 4% year-on-year, but your selling and administrative expenses are up by 12% year-on-year, and Torben, you briefly touched upon it yourself, but can you just talk through this sort of negative impact on your leverage, and especially how to model the SG&A costs going forward?

Yeah. When when we took over the two Svane stores back in January 2025, they they are fairly big stores, especially the one in in in Aalborg, and they come both with revenue, but they also come with rent and salary cost, SG&A.

We have, since the takeover, we we have worked on exercising a turnaround in in the two stores. The retail margin is then consolidated into our figures.

That is also why the gross margin is positively impacted, but you know also those costs that are coming with the stores that we took over because they were not profitable at that time. We we have to admit that we have been struggling also to to do the turnaround during the year, and that is why that that the total result is higher revenue, higher gross margin, but lower lower profit.

When when it come to looking looking ahead, the stores are now performing a lot better than when we took them over, and and we start to see a breakeven not so far away in in the operation of the two stores. Then we took over one store, one Aubo store in Esbjerg 1st of September, and one Nettoline store in Kolding, and it's a little bit the same again, new new new management in place, and then to to work on professionalize and optimize the operation of the stores.

Both of them are significantly smaller stores than than the Svane stores in Aalborg and Hjørring. You you will see a little bit the same same picture also in the future, but hopefully soon that we we can get breakeven and and get them profitable.

Even even more, we we are working on also to to sell the stores to to new local owners again. There is dialogue going on with potential owners in in Esbjerg, there is a potential owner in place in Kolding as daily manager, and and the same in Aalborg and and Hjørring.

As it is stores that are coming out of not being profitable, of course, they need to get some confidence and comfort in that they they will be capable of of operating them profitably before they they want to take over.

Makes sense. Then in terms of the revenue impact from this Celebert acquisition, and I guess also the two smaller Aubo and Nettoline stores, can you just sort of remind us how much inorganic revenue or how much added revenue does these three acquisitions give you in 2026?

The two smaller stores will be minor because it's also consolidated into the internal turnover, a part of this internal turnover will be eliminated, so that is not a lot. For Celebert, for December month, I guess can calculate with around 10 million.

For '26 in Celebert?

We will say more about that when we present our budget for 2026. I think we have mentioned in relation to the acquisition earlier on that the yearly turnover is around 150 million.

That still holds? There's no sort of material changes to that estimate?

Nej. Then we will have to communicate about it when we present our expectations for 2026.

Fair enough. Then on your order commentary, it seems quite positive for Q3, and essentially as I read your report, you indicate that order momentum has improved during Q3.

I'm obviously just curious whether the positive momentum has continued in October and the beginning of November.

I think the most positive way to phrase it is that it's stable. It's not fantastic, but yeah, it's stable, I would say.

Now we are having a slowdown, but that's probably more seasonalities, that when we are getting so close to Christmas, then people, they have other top-of-mind things to do. It's not any big changes.

Just to understand, when you say you have a slowdown, is that relative to what you saw in Q3, or is that relative to what you saw in sort of October, November last year?

I would say it's normal. It's same level as last year.

All right. Thank you.

That was all for me.

Thank you.

Thank you very much, and good morning. Good morning, Torben, and thank you for taking my questions here.

Just to touch upon the Danish B2C sales again, is it still the higher end of the product line carrying the torch, or what is going on with the lower end of the market? Is that starting to contribute as well?

I think the right way to put it is that the order intake is developing in all areas of the market, as well the low end as the high end. Then also the housebuilders, we have seen good uplift in the beginning of the year, in the first half of the year, maybe stabilizing a little bit on that level now in the autumn.

Housebuilders are normally above the mid market, maybe a little bit more there than in the low end. All our brands are having increases.

Thank you. That's very clear.

Your positive results again for Norway here in Q3, do you have similar expectations for the Norwegian business here going forward? Do you still expect good performance in Q4, and what is your visibility on this?

Yeah. As Norway is coming from a very, very low level for a long, long period, that the increase in the order intake is also expected.

We haven't, though, not seen the interest decreasing in Norway as expected. I think also the market is right now a little bit hesitating to see what is happening on that side.

There is a huge demand in Norway for new builds and also renovations. That would normally mean that the good development should continue.

Again, it's coming from a low level, and it's still early days to say something very solid on the future.

All right, thank you. That's also very clear.

Another question on the narrowing of the full-year guidance here with just one month to go for the full year. The implied Q4 results that shows a top-to-bottom range of 20 million on revenue and on EBIT, can you please just share your assumptions behind this updated guidance, and again what would need to happen to reach either end, please?

Yeah. It's all the usual topics when we come to year's end.

It is sales mix, both between the high-margin and the low-margin segments. It is the share of the third-party products that has a very, very low margin, and then it's how we succeed to deliver in the final weeks of the year.

We have every week, every month, we have orders that are postponed to the week or the month after, and that makes no difference in our quarterly results, but when we come to the end of the quarter, and especially when we come to year's end, then it make a big difference if some orders are postponed for whatever reasons it can be. For us to reach the high end, we should have a high share of B2C, and we should get all the capacity that we are having in our four factories should then be utilized, and hopefully a little bit more than 100%.

If that is not the case, then we are coming towards the low end. It's all those usual things that we cannot determine before we know how December has been.

All right. Thank you very much, Torben.

That was also very, very clear. A final question from my side, and I know you have spoke a little bit about it, but congratulations on getting the approval for the acquisition of the remaining 55% of the Celebert business.

Can you just maybe put a bit more color on how Celebert has performed here in Q3, and then maybe also your thoughts on potential synergies and strategic rationale now that you own the full business prior to owning just 45%?

Yeah. We start from behind.

The main synergy in this is that a part of the assortment that Celebert is selling is manufactured by us. The more they can sell, the more revenue we will have from our production companies to Celebert.

That is the synergy that is in there. Then Celebert is also sourcing various products, for example, the Just Wood assortment that is a good part of the revenue is sourced.

Some of the sliding doors is sourced, etc. There, the synergies are less, but again, it makes the full revenue of Celebert and their potential.

Of course, the change of management from the previous owner through the last 20 years is a challenge, and we have had a long period of both the old management and the new management in the company. We have tried to, what can you say, make a safe and solid handover from the previous owner.

There's always some challenges in regards to that, and yeah, we are working. We will, from today, when we now with the approval from the competition authorities, then we are allowed to take active part in the daily management again, and we will do our utmost to continue on the same level, and also develop the web shop further.

Okay. Thank you very much, Torben.

That was all from my side.

Thank you.

Yes, thank you, and good morning. Just a few follow-ups.

Do you have a timeline for when you expect to divest the four franchise stores you've now acquired this year? Given that you already have ongoing dialogue with sort of potential owners, should we expect the two new stores that you acquired to be sold faster than the Svane stores that you've now held for almost a year?

I think it's a good question. The target is definitely to divest them as fast as absolutely possible.

As the Aubo and Nettoline stores are smaller stores, it's also a smaller amount that is needed, that could potentially go faster than the Svane stores. I would say when we are here in a year from now, we should either have divested the stores, or we should be very close doing so.

That's very clear. Then just a follow-up on Christian's question on Celebert.

The 150 million that you mentioned, is that the gross revenue or net revenue impact? Because you do have quite a bit of internal sales, as you mentioned yourself, to Celebert.

That's the revenue in the web shop.

Okay. Got it.

Gross turnover, yeah.

Just on the new lacquering facility, do you expect that to be fully ramped up for Q4 in terms of gross margin impact, or will it be more of a gradual ramp-up through Q4 and into next year?

No, it should be fully ramped up on gross margin. It's also a part of what you are seeing in Q3.

The next big step in utilizing the new facility is to insource the lacquered assortment from Aubo, that is as of today sourced outside the group. That will happen next year, that will not happen in Q4.

That's very clear. Then just...

The gross margin effect on the old business or the TCM businesses is definitely there in Q4.

That's very clear. Then just a follow-up on the B2B part, because you mentioned a stabilization, but just to be clear, because the order intake has been a bit up and down this year, you had a strong Q1, a softer Q2, and then a strong Q3.

When you mention that you're seeing it stabilize, is that at the Q1 and Q3 levels or at the Q2 level?

Now the Q4 is not over yet, and it depends on how things are working. I think the best way to put it is to say that the project market is still running on a very, very low level, and also lower than previous years.

The housebuilders has gained some momentum again, which is good to see, and then the rest of it is a little bit up and down. It's a little bit like the rest of the market, that you have some good weeks and then you have some poor weeks, and then it's fluctuating over the weeks.

When you then look at a quarter as a total, then it looks quite stable, but with a not too big increase, but still positive.

That's clear. Then just a final question from my side on the B2C segment.

In the Q2 report, you flagged that you saw sort of the second half of the quarter had a weaker momentum in B2C while it was still growing. Is that the level you saw continuing in Q3 and I guess so far in Q4, or did it actually rebound from that?

It's a little bit like when it was weak in the second half of Q2, it also continued into Q3, but then in the end of Q3, it was up again. It's like the seasonality is a little bit more higher, and higher and downs.

The holiday period, which is a low season, is getting longer and longer, and then when the market gain momentum again, then it's higher than it was before, if that makes sense.

Yes, that makes perfect sense. Just one follow-up on that.

We've seen quite a few of the construction companies in Denmark sort of flag that they're seeing more consumer cautiousness due to weak consumer confidence. Are you seeing any indications of this?

To a certain extent. I would also say it in a different way.

The housing market in Denmark, the number of houses and apartments sold is increasing month by month with high percentages. Normally, we can see a correlation from houses sold till kitchens sold a few months later.

The kitchen market is not as strong as the housing market. If that means that people, they, due to the increased housing prices, they cannot afford to change the kitchen right away, they need to do some savings before, I don't know, but normally, that the kitchen sales should follow the number of houses and apartments sold.

If that is still true, then we will see that in the future, because we cannot see it. We have not been able to see it in '25 as strong as normally.

That's very clear. That was all for me.

Thank you very much.

Thank you for your time. Thank you for your questions and listening in.

Have a nice day. Bye-bye.