Regulatory

Profoto Q2, 2021

Interim Report for Profoto Holding AB January 1–June 30, 2021

Financial summary April –June 2021

  • Net sales increased to SEK 172m (81), an increase of 113.3 percent. Adjusted for currency effects, net sales increased by 131.3 percent.
  • EBIT amounted to SEK 36m (-23) and the EBIT margin to 20.9 percent (-28.6).
  • Adjusted EBIT1 improved to SEK 53m (-30). Adjustments for the quarter related to resetting of IPO expenses of SEK 17m. Adjustment for the second quarter 2020 related to received government grants of SEK 6m.
  • Adjusted EBIT margin1 for the quarter was 30.7 percent (-36.6).
  • Profit for the period increased to SEK 22m (-21).
  • Cash flow from operating activities totaled SEK 54m (5).
  • Earnings per share (before and after dilution) 2 amounted to SEK 0.56 (-0.53).

Financial summary January – June 2021

  • Net sales increased to SEK 325m (229), an increase of 42.0 percent. Adjusted for currency effects, net sales increased by 55.2 percent.
  • EBIT amounted to SEK 76m (-10) and the EBIT margin to 23.3 percent (-4.4).
  • Adjusted EBIT1 improved to SEK 100m (-16). Adjustments for the six-month period related to resetting of IPO expenses of SEK 25m. Adjustments for the six-month period previous year related mainly to received government grants of SEK 6m.
  • Adjusted EBIT margin1 for the six-month period was 30.9 percent (-6.9).
  • Profit for the period increased to SEK 54m (-11).
  • Cash flow from operating activities amounted to SEK 96m (44).
  • Earnings per share (before and after dilution) 2 amounted to SEK 1.34 (-0.27).

Significant events April – June 2021

  • The Board of Directors decided on financial targets3: A constant currency annual organ- ic growth rate of 10 percent, an EBIT margin of 25-30 percent and a dividend payout ratio exceeding 50 percent of net profit.
  • On the Annual General Meeting on May 7 it was resolved to pay a total dividend of SEK 156m to the owner, Profoto Invest AB. The dividend was also paid during the reporting period.
  • The Parent Company (Profoto Holding AB (publ)) has made a bonus issue in which the share capital was increased to SEK 0.5m.
  • The Parent Company (Profoto Holding AB (publ)) carried out a share split, increasing the number of shares to 40,000,000.
  • In June the Parent Company (Profoto Holding AB (publ)) entered into a loan agreement for a RCF loan with a total credit limit of SEK 250m. The conditions for using the credit facility have been met in July.

Significant events after the end of the period

  • The Parent Company Profoto Holding AB (publ) has been listed on Nasdaq Stockholm’s Mid-cap list with its first trading day on July 1, 2021.
  • The former parent company Profoto Invest AB has exchanged all of its shares in Profoto Holding AB (publ) to its owners on July 5, 2021.
  1. For information and explanations regarding alternative performance measures, see pages 19-20.
  2. Calculated based on 40,000,000 ordinary shares before and after dilution (retroactive adjustment for periods prior to the second quarter of 2021).
  3. The financial targets are presented in detail on page 6.

This is a translation of the original Swedish interim report. In the event of a difference between the English translation and the Swedish original, the Swedish interim report shall prevail.

Key ratios
Group
2021
April – June
2020
April – June
∆% 2021
January – June
2020
January – June
∆% 2020
full year
Net sales, SEKm 172 81 113,3 325 229 42 528
EBIT*, SEKm 36 -23 76 -10 -12
EBIT margin, % 20,9 -28,6 23,3 -4,4 -2,2
Adjusted EBIT*1, SEKm 53 -30 100 -16 56
Adjusted EBIT ­margin1, % 30,7 -36,6 30,9 -6,9 10,7
Net profit for the period*, SEKm 22 -21 54 -11 -17
Cash flow from operating
activities, SEKm
54 5 970,6 96 44 117,8 153
Net debt4, SEKm -14 -3 416,7 -14 -3 416,7 -91
Net debt/EBITDA -0,09 -0,02 -0,09 -0,02 -1,2
Earnings per share*2 0,56 -0,53 1,34 -0,27 -0,44

All amounts are in millions of SEK (SEKm) unless otherwise stated. Rounding differences of SEKm +/-1 may occur when adding up figures. Where an underlying figure is SEK 0m when rounded, it will be reported as 0. Figures in parentheses represent the same period last year.

  1. For information and explanations regarding alternative performance measures, see pages 19–20.
  2. Calculated based on 40,000,000 ordinary shares before and after dilution (retroactive adjustment for periods prior to the second quarter of 2021).
  3. The financial targets are presented in detail on page 6.
  4. A negative amount indicates a positive net cash position.

*Percentage change when changing the sign is not stated.

CEO comment

Gradually a re-opened world – good for Profoto too

The second quarter of 2021 has seen a gradual reopening of the economies in the US and Europe. This is gratifying and is clearly visible in our sales, which increased to SEK 172m (81) during the quarter. In APAC, however, the picture is more mixed. There was an opening up internally within regions or within countries, but quarantine regulations for travelers have continued in many countries. Both China and Japan have had some local outbreaks that have led to restrictions and affected market activity and our sales. In India and Indonesia, the pandemic is a major problem and restrictions are severe.

Nevertheless, it bodes well to see that as soon as restrictions are eased, we see a return in demand for our products, which was directly reflected in sales, especially to our larger customers, dealers and rental companies. Perhaps when the long-awaited wedding can finally happen, it will be all the more important to immortalize it?

The gradual reopening of society has also meant that we can travel and meet customers in person, which is important and a true pleasure. Both we and our dealers have increased our customer activities. Our products that are used for e-commerce photography have performed well throughout the period.

During the first quarter, we launched the Pro-11, a further development of our flagship product, the Pro-10. We see continued strong interest in it, especially from rental companies. During the second quarter, Profoto Camera was launched, a camera app for smartphones. Profoto Camera makes your smartphone into a professional camera. The Profoto Camera enables you to use your smartphone with the Profoto professional light shaping system to create great images. The light is the essence of every image!

However, not everything has been bright during the period. Like many other companies, we have seen component shortages and logistics problems, which have led to delays and, in some cases, non-delivery. The problems are not over, but we are putting a lot of effort to plan and find new solutions.

Nevertheless, it has been a useful time in many ways. We have learned many new ways to work more efficiently, which is reflected in the results and margins we deliver. The adjusted EBIT result amounted to SEK 53m (-30) with a margin of 31 percent, which I am proud of. We wil focus on growth in the future and therefore have set our financial marginal target at 25-30 percent.

Just after the end of the period, on July 1, we were finally able to make our debut on the Nasdaq Stockholm stock exchange. It has been an intense but very rewarding period, meeting investors from all over the world. I am very pleased and proud of the great interest Profoto has received from strong and highly respected institutions and a number of private individuals. Thank you! Now it’s up to us to shoulder the responsibility to deliver. Growth, earn- ings and dividends.

Anders Hedebark
President and CEO

About Profoto

Profoto was founded more than 50 years ago and since then has been the world leader in lighting products for professional photographers, driving innovation and awareness of how to create better images through light. Light makes the difference between a good image and a great image. The customers include the world’s leading photographers and Profoto is currently represented in over 50 markets worldwide. Net sales in 2020 amounted to SEK 528m. In all, 97 employees work at the headquarters in Stockholm and in subsidiaries in the United States, Japan, China, Germany, France and the United Kingdom.

Conference call

Profoto Holding AB (publ) will publish its interim report for the second quarter of 2021 on Tuesday, August 10, at 08:00 CET. At 10:00 a.m. the same day, a webcast teleconference will be held where President and CEO Anders Hedebark will present the report together with CFO Petter Sylvan. The presentation will be followed by a question and answer session. The presentation will be held in English. Those wishing to participate in the conference call in conjunction with the pres- entation should call the following numbers from Sweden: +46850558373 , UK: +443333009270, US: +16467224957. You can also follow and listen to the presentation and the conference at the following web link: https://tv.streamfabriken.com/profoto-q2-2021

For further information, please contact

Petter Sylvan, CFO petter.sylvan@profoto.com
+46 (0) 703 08 8060
Gunilla Öhman, Investor Relations
gunilla.ohman@profoto.com
+46 (0) 707 63 8125