Good afternoon, and welcome to the Pricer second quarter 2026 investor presentation here at [Financial Hearings?] .

I'm joined today by Magnus Larsson, President and CEO, and Claes Wenthzel, CFO. Welcome.

Thank you very much.

A strong report today, there's a lot to unpack, I'll leave it to you right away.

Excellent. Thanks a lot, Hjalmar.

Thank you, everyone, for joining today's call. It's a very hot day in Stockholm today.

Let's see if we manage to make the summer heat a little bit higher after this presentation of the second quarter. I leave it up to you.

Our vision, to be the preferred partner for in-store communication and digitalization, that's what we work with, that's what we speak to our customer about, and that's actually what has been helping us with, or generating today's results. I will dive straight into the Q2 highlights.

For those of you that read the report, you can see that we have had really good commercial traction in a few of our markets. Canada, very strong, but also good growth in the US, in Scandinavia, in the Pacifics.

I will come to that a little bit more in detail. I did some digging into our archives, and I realized that this is the first quarter since 2024 where actually we demonstrate growth in both net sales and order intake.

To me, this is a very positive sign that we're moving in the right direction. Another very positive aspect of what we've done is that we can see that the net sales of Plaza, our SaaS solution, grew with 35% quarter-on-quarter, and we added actually more than 500 stores in Q2, and we were actually doing much more than 500 stores in Q1 as well.

As you could see from the previous slide, now I flip through it very fast, we have added more than 1,000 stores only this half-year, it's been quite a success. From a financial point of view, we are zooming in on historically high Pricer levels of gross margin.

Our gross margin reached 28.1%, compared to 19% in Q2 last year, it's been a major growth. It's actually a major growth versus Q1 this year, and Claes will speak a little bit more about the gross margin later on in the presentation.

We continue to show strong cash flow. We have a net cash position, we're not in debt.

The adjusted EBIT margin at 7.1% versus -2.8% in Q2 last year. All in all, a very strong financial performance.

Another thing that I really want to speak about is innovation. We have spent a lot of time, actually more time than money, on innovation, where Avenue and the way that we wanted to reshape ESL and the way you look at ESL as the first step.

It's been a success. We have had the first commercial orders of Pricer Avenue in the quarter.

We have done independent A/B testing that really shows that Pricer Avenue generate shopper attention, shopper interest, and above all, it actually does increase sales when you do promotion. All in all, it's a Q2 that we're extremely happy with.

Of course, we see that there are always things that we want more of, actually most of it, but at large, we're super happy with this report. If we dip a little bit more into the order intake, we had a growth of 13%.

We landed at 568 million SEK this quarter. We have a growing backlog.

We have a positive book-to-bill, which means that we can see that the company is growing from an order point of view, from a backlog point of view. The performance in America, we had a lot of orders from Sobeys for the phase two installations.

We have also started to install, but we'll see that will be quite intense work during autumn. We receive continuous orders for IBM Federal for the DeCA, the army stores.

We also start to receive small, but tangible increase in orders from new customers. It's with some of the announced partners that we have, like MDI, but it's also some new ones.

We have a small, but new customer in Alaska, Alaska Hardware. We'll see more of this.

I think above all, we start to see a mindset change on the market. We start to have more discussions on future digitalization.

We see customers making plans, setting budget, and some also starting to invest. Of course, after a year where always in, maybe not hibernation, but it's been very slow, and after the tariff discussion, after the start of the war in Iran, it's nice to see some positive movements on the market.

This is something we definitely see on the North American market. We have a continuous commercial traction also in Scandinavia.

The move from partner-led sales to direct sales has been very good. We had good traction, actually way better than last year, but also better than compared to our own plans, it's been very positive.

We have had success on the field sales in Sweden. We have had success on key account management.

Above all, we are working much closer now to the large retail customers that we have on this market. Pacific market was really slow last year, but we now see a rebound.

We had good order intake and also invoicing on the Pacific market, and we see an increased interest both in Australia and in New Zealand. At large, it's actually very positive development.

The order intake trend is now moving in the right direction, as you can see from the graph. What else is happening?

Retail industry insights and macro trends. I wanted to focus on the one that's been highlighted: market growth and strategic digitalization, but also tech transformation and personalization.

I will speak about Avenue, and I will speak about AI. The first one.

We did this A/B testing. It was done by an independent third party, company called Retail Academics.

This is what they do. They investigate behavior in stores.

That's really what they focus on. We were working across three UK stores.

We had 23 unique brands. We had Coop [UK's?

England's] own brand, but then we had quite a few well-known brands. Pringles is one of them.

We had 66 different products. The real question was: what is the impact of Pricer Avenue versus the traditional ESLs when you do promotion?

In two stores, we had Avenue, and in one store, we had our regular ESLs. Of course, we got full access to the sales data, or Retail Academics got it, but they also did interviews with shoppers.

It was on a level where you can say that the statistics is correct from a statistical point of view. What is the result?

Shopper identify promotions 43% faster with Pricer Avenue. That's the entire idea.

You make a promotion, you want people to see it. 90% of the people that were interviewed, they stated that the promotion and the setup with Avenue actually increased their interest to purchase.

Of course, the best part was that we could see tangible and statistically verified sales increases. When we looked at all the 23 brands and the 66 products, we could see 2.2% sales increase.

It doesn't sound like an awful much, does it? The thing is, if you're in this world, if you're actually selling what we call fast-moving consumer goods, depending on the assortment, depending on the product that you sell, an increase of 2/10 of a percent might actually be fantastic result.

If it's something else, it could be that you want 3% or 4%. Regardless, when we look at it this way, it is really good.

It's something that we bring this to our retail customers, they will say, "Yes, thank you. This is what we want."

If we then say, if we took it from more like a general picture with a price, or Avenue price, if we had an inspirational picture, this figure raised to 3.8%. If we added the brand logo, like you can see here in the Pringles picture, it was almost 5% sales increase.

These figures are something that our retail customers want. This will be an immense help when we go out and sell Avenue.

We can tell them, with Avenue, you get all the benefits from the traditional ESL, but we will also, unlike anyone else on the market, help you with real sales uplift when you do campaigning. This has also led to a situation where we're now engaged to a different way than before with the fast-moving consumer goods companies, because we have something that can help them sell more in the same store, same setup, but just sell more.

This has been really good, and the fact that we now have the test done by an independent third party will also be extremely helpful. Something we've also been working a lot with is our own AI platform.

We call it Pricer AI. We've been working with AI since 2024.

More recently, our team has now spent a lot of time basically building our own tools and our own way of working. You could say that we have an internal platform that is now custom-built.

We built it applied AI infrastructure. It's agnostic from an agent point of view, which means that we can work with Gemini, or we can work with Anthropic and Claude, or we can work with pretty much any agent we want.

If we want capacity, we can actually use the agent that adds most capacity. If we want low cost, we can use that one.

Something that actually impressed me quite a lot is that we have built our own way of training the AI. It learns through self-reflection, but it also adds to external multimodal data.

Whatever that means, that actually means that we can train it with YouTube. There is a lot of clips from really skilled engineers where we can actually take that and use that as a part of the process to train our AI.

When now look at the projects on the software side that we actually done since we started to implement this Pricer AI, we've seen that we now go up to more than 10 times the capacity in development. As a next step, what we're doing now is actually we take this platform, we will also use it on our internal processes to see how can we improve corporate functions.

Same logic. We have same kind of interfaces, but the agents will help us to be more efficient internally.

The next step is we have 60 million ESLs connected. How can we actually use that in a different way?

How can we give more power to our customers to adopt the way they work with Plaza? Here, one potential will be to see how can we use now our platform to actually embed it in our tools and our products that we have customer-facing.

That will be also part of the future setup. We think with this platform that the team has built, and they've done fantastic work, we have something Pricer-specific that we can use to improve internally, but also that we can have to improve the customer experience and the way our products are being used.

I think you will hear more and see more about what we're going to do with Pricer AI into the future. I think I'm done with the shameless selling, Claes, will you take the facts?

Okay. Let's look at our P&L then.

As you can see, our sales grew 8.5%, but if we exclude the currency effect, it was close to 10%. It was 9.9%.

What also is very impressive for this quarter is, of course, the very strong gross margin, and that is driven by three things. It's lower production cost, and it's also the customer mix and the product mix, but it's also strong increase in Plaza sales.

We also took a one-off cost of 9 million in this quarter, which will save on an annual basis, which start now in July, 17 million per year. Adjusted for the one-off cost, we have an EBIT of 34.5 million in the quarter, which is a margin of 7.1%.

Then if you look at the cash flow, we continue to have a strong cash flow. As Magnus said, we have no net debt.

We have 336 million in cash, which is net cash of 36, but we also have available an unused revolving credit of 150 million. We have available cash for almost half a billion at the end of this quarter.

As you also can see, the inventory has gone up with more than 100 million now in the first half of the year. That is, of course, for the upcoming sales.

We have a higher inventory level now than we normally should have, we can expect the inventory to go down during the rest of the year. Then if you look at net sales and the gross profit development, the interesting thing here, of course, the very strong increase in the rolling 12 months gross profit.

Just in this quarter, it's up more than 10% compared to last quarter rolling 12 months. All right.

Let me summarize: strong financial performance, good net sales, good order intake, or at least it's growing, it depends on what you think is good, I think it's good, I'm happy, increased gross margin, it's close to historical highs, and we have a net profitability. We have executed on the organizational changes that we spoke to in the Q1 report.

It's of course always hard when you do it in an organization like ourselves. It has a tangible impact.

Also here, I have to say that our colleagues have done it really well, and we've done our best, of course, to make sure it will be as painless as possible. It's also, of course, adds to our ability to make profit into the future, it's the right thing to do.

Looking at the geopolitical situation, we start to see, as I mentioned before, that the sentiment appears to slowly improve. We can also see that in North America, customers are planning for new investments.

They are starting to invest, and we are part of many of those discussions. Then something I just wrote a little bit about in the CEO update, but I want to end with is that we need to continue and maintain our position as thought leaders.

We managed to establish something with Avenue that we get positive feedback on a regular basis on events, from customers, from suppliers. We see that also our competitors are trying to copy us.

It's the position we need to maintain. We have a few projects, new innovative solutions, and we make significant progress on these solutions.

It's something that we look forward to speaking more about later. It's something that will keep us in the forefront of innovation and that will maybe not cement our position, but make it stronger as thought leaders.

That's pretty much it. Are we ready for the Q&A?

All right. Perfect.

Thank you. Very exciting finish there.

I guess there's something we will come back to in the future.

I hope so.

Yeah. I figured let's start with the gross margin.

We have some questions on the line regarding this, and I'm also curious because you mention, of course, this is the result of a lot of things working together. If we look at the sales mix, you mention, of course, the product mix, and then there's some market mix.

Is it safe to say that all markets are pulling evenly, or is this sort of expansion maybe concentrated towards certain geographies? Can you give us some details on this maybe, or?

We can say that historically there has been tougher competition, more price pressure on the European market, and a little bit more maybe in the South and Central Europe than in Northern Europe, and less so in North America. Yes, we can see distinction, but doesn't mean that there is no competition in North America.

There is a lot of competition, but it's been historically on a different level. Yes, we can see that we have a higher contribution from North American customers, generally speaking, than from European customers.

Do you feel that this is in some way connected to direct-to-market sales approach that you adapted across some geographies here in Europe as well, or is it just a wider shift sort of in the pricing power that you have? I think we have been,

regardless of sales method, when we move from partner-led to direct sales like in the Nordics, yes, we can see that it's been contributing to increasing our gross margins, both from a service delivery point of view, but also from a product price point of view. I think in many geographies, we've been actually quite good to maintain price and really use the pricing power that we have.

We have a good solution. We have customers that want to continue.

Of course, you can never be too high in price, but we need to make sure that we are careful about really addressing the value we deliver and to maintain our prices. I think you can see a lot of that in our general increase of our margin as well.

One other aspect also is we have a better planning now, which means that we are taking more by boat compared to plane before, and that has a huge impact on the margin as well.

Which, of course, also affect the inventory.

Yes.

Yeah. Is that what you refer to when you mentioned the production costs?

Is that shipping, or?

That's part of the production costs and our cost of goods sold, yes.

Okay.

It's actually on the production cost, of course, we are continuously working with optimizing our cost of the products. We reduce the number of products that we have, it's more effective.

We look at the way we do the transportation. It's also manufacturing cost, component cost, it's a constant negotiation to make sure we have the right cost levels.

Yeah. Okay.

Thank you so much. Of course, like you mentioned, the strong development in the Pricer Plaza contributed to this as well.

Yep.

Yeah. Previously you had a recurring sales target for the Plaza.

Can you give us maybe some soft values or what you see for the type of potential for keep upselling the Plaza platform and the recurring revenue?

I see good opportunities. We have worked a lot with Plaza.

We actually have a number of larger customers that are still on an on-prem version that are planning to move over to Plaza because they see the benefits. The customers we have, they are really happy, and we are spending probably the same amount of money developing Plaza, but now we don't develop Plaza, we develop the add-on functionalities.

Some of them will be to make sure we maintain a really good base level. Some of them are functionality that we will charge for, that we can see there's a clear value-add, that will be a clear price for this functionality as well.

You could say we moved a lot of the development from the maintaining the platform to actually building new functionality, which has also been fueled basically by the AI advancements that we've done.

All right. Perfect.

Thank you so much. If we move on then to the sales and the order intake, could you elaborate a bit on the Sobeys, the framework agreement that you have, the latest one, at least?

Was this strongly contributing to the order intake in this quarter? Did you start the deliveries?

I believe you mentioned sometime around May that you anticipated the deliveries to start. What was this?

Yes, it has all materialized.

It's materialized.

We can see that, yes, we have had a lot of order intake. It's a big contributor, but we have started deployment in May according to plan.

We see that we said that we will deliver over six quarters. We're trying to squeeze, and it's actually Sobeys that say want to do it as soon as they can.

It's actually, together with Sobeys and our partner, is planned store by store. We really try, when we get an order now, we know it will be delivered fairly soon.

It's not unlike 2024 when we got this very large order and it would be spread across basically six quarters.

Okay.

Or four quarters at that time. Now every single order we get is something we plan to deploy quite fast.

Okay. Quite a little bit different delivery approach this time, which is something I guess to bear in mind here.

I can say also that the volumes will depend, they have a lot of different formats. They have their own Sobeys formats, but then they have a few others, and they are of different sizes.

You can see that volumes might depend on actually which format they prioritize the deployment of.

Thank you. I believe maybe you addressed this, but it was a very interesting comment, maybe we could deep dive into it a bit further.

You mentioned that you're noticing activity, or digitalization activity in the North American market. Could you describe maybe what you are referring to?

Is it mainly among your existing collaborations? Is it also new customers running evaluations?

It's both. Of course, from our point of view, we want to serve our existing customers.

We have, with the large ones, we have very good dialogue and good discussions on what are the next steps, how do they want to transform from what they have now until next generation of ESL, Avenue. We have Avenue discussions with quite a few of the really large retail customers we have in North America, how can it be utilized to push their promotions and help them sell more.

Then it's also new customers, and, of course, and new opportunities, and there is sales also to some of the partner agreements that we signed last year.

Yep.

Of course, it's exciting to see what's going to happen with the new opportunities. Of course, at the end, they're binary, but we can see that there are opportunities.

We can see that there are interest and that they actually plan to do the investments.

Yeah. Yeah.

I think one interesting partner that you work with in the region is the MDI, and you referred to that earlier. Do you have any more sort of clarity regarding the scope of this deal, or what's to be the potential of that deal?

This deal is that

they have a huge number of stores. I can't recall the exact number right now, it's 500 or 600.

They're a distributor of foods, but they also distributor of IT services to their stores. Here we're working together with them.

We go to their events. We discuss when they make promotions.

Of course, we reach out to the stores associated with MDI. It's something typically with this kind of partnerships, you could see that you need to win the first stores, and then you start to build traction, and then you can see that the speed will just basically speed up and go faster and faster.

It's a combination of you need to bring the message out to the market, you need to show that there are a few first movers, then they will be a lot of internal talking. We've seen it with quite a few retail chains that it can start slow, and then it gains momentum.

All right. Perfect.

Thank you. Then we have some questions on the line as well.

A lot of them are actually about the gross margins as well. If you don't mind, maybe we jump back into that.

Regarding the product mix, could you elaborate a bit on this? Maybe aside from the Plaza versus remainder of sales, if we disregard Plaza, for example, the remainder of the product mix, how does that impact the gross margin, maybe on a wider level and maybe specifically for Q2 as well, if you can give us some bit of information on this?

What else should we say, Claes? What would be your take?

The product mix is more we have fewer products, which means that it's easier for us to plan. That also means that we have been able to reduce our cost to produce the products we have now compared to one year ago.

The production cost is down, and that is mainly the bigger part, and maybe the mix between the products, if we exclude Plaza.

Yeah. Then,

as I said, the freight has an impact here as well.

Maybe it's actually more customer mix than product mix.

Yes.

We can see we have the positive contribution from Plaza, where also we made changes to the software, actually

Yes, we have reduced the cost.

so we have less cloud costs with the new software. Then also we have the non-recurring services, where we have a lot of installation services that's also contributing to the gross margin.

All right.

It's a combination.

That's very clear. Thank you.

Then on the Avenue, there's a question on the line here whether you could give some additional details to potential orders here, maybe on the sort of financial profile that you're expecting. Would this be dilutive to the margin, or could it be even accretive?

What is your best hope for the pricing of this?

My hope is, of course, that if we show that we can deliver additional value, and now we showed it in the A/B testing, that we take part of it. If anything, I would expect that we make more money out of it.

I do not expect that we will do full stores with Avenue, but I see that Avenue will be a complement for high-impact zones, basically zones where you have product with high gross margin, or product that you want to campaign, or product where you have a very high churn. Where you see that this, if we put it here and we increase the sales, that will have a really good impact on the overall profitability and sales in the store.

That's my expectation. I think this is also now opening a door for us to start new dialogues with companies like Pringles or Coca-Cola or Lego.

When we do this campaign, as I mentioned, we had a number of brands that we were working together with, we are reaching out to them and say, "Okay, would you want to do this at a larger scale? How can we help you make more?"

Many of these customers, the FMCG companies, the local teams have a relatively high degree of freedom to actually choose the way they do their local promotions. I think this is an area where we will spend more and more time, because we believe that could be a very rapid way of getting Avenue into stores.

Then it's a new product, retailers are quite conservative. I'm sure that I'm an optimistic guy, I want it to go fast, but it will probably not go as fast as I have in my mind.

Introducing new technology, even though it's great technology, typically takes some time.

Yeah. Yeah.

Yes, I do expect it to contribute positively to margin. I expect it to contribute positively to the profitability of our customers,

and

we should take part of that.

Yeah. Considering the tests that you've been running and the results you've been getting now, what conclusions can we draw regarding the timeline maybe looking forward towards a more sort of wider scale product launch?

I think so. From our point of view now, we have products, we are selling, but it will probably take some time.

We shouldn't expect any volumes this year, but I'm carefully optimistic for next year.

Yeah. Then we have a question regarding the Plaza.

Could you provide us maybe a little bit more on the sort of pricing that you have for this service? Is it a sort of a subscription fee?

What does the customer pay for? What is sort of driving the growth?

It's a pure subscription fee, and the fee is basically based on several parameters: what is the size of your store, what is the functionality you want to be included. That's the base.

Then we're working more on now the added functionality, which also will be then subscription-based, but then on top of what we have. We see that with installed base of 7,000 stores, we have a pretty good market to actually do upsells and further upsells.

That sounds good. Thank you.

Then we have a question on the inventory. Is it some sort of maybe inventory effect reflected in the gross margin that we see now in Q2, considering, I guess FX on purchase pricing?

I guess what most of these questions boil down to is whether you feel that the current level of gross margin is sustainable going forward, maybe?

It depends what you mean with sustainable. One quarter can be higher margins than the other quarter, but of course we have significantly higher margin than we had last year, and that will continue.

All right. Super.

Thank you very much. Then I guess on the cost savings, of course you have communicated the scope of these, and we saw the one-off here in the second quarter.

Could we expect the full sort of run rate of this savings to start now in the second half, or is there sort of a ramp-up process towards?

No, it's what we said. The savings on that is related to the one-off cost of 9 million, that's going to be 17 million on a yearly basis.

That will have effect from the 1st of July, because these people will not get any more salary, and we have taken the cost.

Okay. Super, that's very clear.

Thank you so much. I believe we have addressed most of the questions that we have on the line now.

Yes, I believe that's everything for now, I'll leave it to you for any concluding remarks.

All right. Thank you for having us, Hjalmar.

Thanks, everyone, for joining today's call. I certainly hope that we managed to increase the summer temperature a little bit with this presentation and the report.

I look forward to our next presentation, and until then, I wish you a very pleasant summer. Bye.