Boozt AB (publ) (BOOZT) Earnings Call Transcript & Summary

Good morning, everyone. I hope you can hear me. The room is not so big. Welcome to the Boozt Capital Markets Day. We're witnessing history here today. It's the first one we ever had. So really exciting. You see that the space in here, it's neither too big or too small. I think maybe this is a learning for next time. We could actually bring a little bit of a bigger room into play. But this would be a really nice cozy and intimate for the ones who are here physically. We will be around 30 external participants and then a lot of Boozters here also on the site. We also have people listening in online. The ones online, you are also able to ask questions during the day. You will, I think, find it relatively intuitive how to do it. And I will take the questions here and ask them to the speakers. We have some dedicated Q&A sessions throughout the day. So I really urge you guys to take notes during the presentation. Prepare your best questions because we've brought some of the sharpest minds in Boozt for this day. So it's going to be really interesting. For the ones attending physically here, in the front, if you really want to try the Boozt experience, we have actually placed a few discount vouchers. And as an extraordinary service, we can actually do same-day delivery to those attending the warehouse to a later. We might even be able to make you pick the order yourself if you want to. So we have the best selection in the Nordics. You can test it out and see if it's true. So go ahead, help yourself. I also want to say that this day is about the future of Boozt. It's the long-term view on the company. For those who are extremely interested in current trading, we will announce our numbers next month. We will do that on the 27th of April. So at that point in time, we can talk about current trading because we don't discuss current trading today. I think we will go to the agenda here. It has changed maybe slightly just to optimize how the day will flow. We will start with Hermann going through the strategy of the company. Then the commercial part of the organization takes over. Peter [ J ]. will come and talk about the Nordic department store. Mads will take the buying and merchandising. Then we will have a Q&A session and then a break. I will not go through the entire agenda. You have it. It's also online. I just want to tell you later today, after the presentations are done, we are going to the warehouse, the Boozt fulfillment center. Sven has promised to show us around. I think Sandra and Hermann will also participate and might be a few more from Boozt. So a good opportunity to see the actual, physical operation. We have a bus. It's not full. So if you want to go, you changed your mind, you are more than welcome to join. With that said, I would like to hand it over to the first speaker of the day, our CEO and Co-Founder, Hermann Haraldsson.

Thank you, Ronni. Let's -- now it's not working. Go like this. I just want to start with just presenting today's presenters. So instead of them kind of talking about who they are, I just would like to give some brief words on the people presenting today. And the first one is Jesper, our Chief Technology Officer. Jesper was one of the guys who have kind of founded the company. Jesper has a background from that company as a [ duly ] partner and PSD in multivariate analytics, right, so analysis. And he's kind of the outstanding tech guy that has built our platform. And together with Peter, he was one of the founders of the company. Peter, an old friend and colleague from the past, Chief Commercial Officer with background from being the Chief Marketing Officer of Telenor in Denmark. And then before that, some 8 to 10 years in media. Then Mads, he joined shortly after. He's technically not a co-founder, but basically, when Jon Bjornsson who is a Board member joined the Board very early in our journey, he said you have to get a hold of Mads who had been the guy leading Magasin in Denmark, the big department store, their kind of turnaround transition, and he was the one introducing kind of the U.K. merchandising tradition into Denmark. So I said, okay, because we were five guys that didn't know anything about fashion because [ Alan ] and Niels also were part of the founding team. So Jon said, you have to have someone who knows something about fashion. So we got Mads on board who built basically our buying and merchandise team. And then I have Sandra, who joined in '16 from Deloitte. Sandra joined us as kind of as a business transformation manager, helping in getting us ready for the IPO. And then she took over as CFO in '19. And then the latest addition is Sven, who joined us from a German company 1 year ago. Before you meet the other guys, because you have met basically Sandra and me several times. I think it's important just to give a recap of our strategy. And we did the IPO in Stockholm back in May 2017. And in 2019, we said, okay, maybe we should revisit the strategy. We had built Boozt.com since we launched it in August 2011, focusing mainly on fashion starting with women's fashion then adding men's fashion. And we said, okay, less -- in '19, said, okay, let's kind of look at the strategy again and see we kind of reassess what we're doing and take a bit more longer view. And a big part of that was to see, okay, kind of where are we heading? Where is the industry heading? And we took a lot of inspiration from the development of Amazon in the U.S., of course. Because when Amazon launched, they were this web shop selling books and have been gradually evolving into a kind of firstly, an e-com platform then trying to kind of be an e-com ecosystem, having the web shop, which is both selling on board stuff. Marketplace is also Amazon fulfillment services, web services, retail marketing, et cetera, et cetera. And what we saw there was that things are developing, and you're going kind of further on. So not only being a platform, but more kind of taking control of the entire e-com ecosystem. So we said that -- this is something that we need to look at. So it's maybe, it might not be enough to be just an online web shop or platform. You should look at the whole ecosystem. And also with this is also what we're seeing is taking place today because whether you're in payments, you want to control the whole kind of the ecosystem or you're end distribution, what's controller. So it's very much a game today of controlling the ecosystem. And personally, I have no doubt that some states, we are no longer talking about e-com ecosystem. It's going to be the commerce ecosystem. So meaning that it will be a full system with both physical and online retail. It probably won't be within the next 5 years, but in 20 years, most likely. Another thing we kind of revisit was what does it take to be successful in this market? What are the kind of the customer expectations? And when we were launching Boozt, and kind of in the early years, our early venture investors, who were kind of a bit frustrated by us loosing money in the beginning, they were always talk about what is the silver bullet. What is the one thing you have to be good at to be successful in e-commerce? And what we found out is that basically, it's not enough to be good at one thing. But basically because what we believe is that it's about ease and speed, relevance and price. And you have to basically mark all four disciplines to be a champion in the market. So you have to be relevant to the customers with a relevant selection. We believe very much in being curated. So from the beginning, we said we don't want to carry everything, even though there was a lot of talk about the long tail. But it's very tempting to basically have a long tail. The thing is that you lose control of your inventory. So we want to be curated and we want to focus on Nordics. It has to be easy. So basically, very early on, we built a mobile experience app and the customer journey should basically be able to travel across platforms. We have two platform agnostic. It has to be very convenient to return and also convenient delivery, meaning you have to have a lot of delivery options. So we didn't opt for one carrier across the region, but have different strong carriers in every single country. The price -- we are price takers. We cannot -- we don't need to be cheaper than the rest, but we also cannot take more than the rest. So we are price takers and we follow the market. And I think that's why we're saying you have to pay the right price. And then speed. The site has to be fast. You have to be fast delivery. So once you deliver within 1 to 2 days. It has to be easy and fast return. And then if they have a problem, they could call us kind of and get a quick response. So when we said, okay, well, how does that look in a kind of Boozt context because we had this Boozt store and we had very much inspired by the big Danish department store. You have to remember that we were five guys that did not know anything about fashion. So we basically walked into that store and said, okay, what's basically with a copy of that just online? And we said, okay, how would it look? How kind of -- what kind of departments could you add? We had the women's, men's, we had also started kids, sport. Also launch beauty and we'll talk about to also do the home part. And then, of course, the interesting part also was what about the vertical. Because the horizontal was given because that was quite easy to say, but it was the kind of the vertical from the marketing services, payment solutions, fulfillment, brand sourcing. That was kind of the path where we also need to look into and see kind of what would our position be. And then we said, okay, if we want to succeed in this market, and this is back in '19, and little did we know that half year later, you would have the corona crisis, which first started as a crisis, then turned into an opportunity. But we said, okay, you have to be relevant and important, relevant for the customers and to be important to the brands. In the beginning, it was very difficult for us to onboard brands. And we also saw that during corona, there was a lot of talk about D2C, that the brands should move to D2C. Most of the big consulting firms were advising the brands to basically jump over the wholesale part and go right to the consumers. So luckily, being folks in Nordics, being top 3 customers of most of our brands in the Nordics, we had the strength to basically to be still an important part and be relevant to the brands. And I think in the current situation, we are even more important to the brands than ever before. We wanted to secure a very strong position in the value chain. We want to own the customer relation, and that's kind of the big fight that is going on. Now is who owns the customer relation? Who kind of -- who can control the gateway to the consumer? And there's a struggle where you see the payment providers or the payment apps are trying to get that -- a lot of the new distributors are also trying to get that access, but we want to own the [ duration ]. We want to be the dominant player in the value chain, and we want to take control of it. And also there is kind of for certain value in the value chain. We are getting the customers and they're buying with us. And of course, we want to take the biggest part of the value chain. We don't believe that there is room in the value chain or that too many parties have profits in different parts of the value chain as why we are taking more and more control of our own destiny. And then finally, as from the beginning, we did not have much money and did not have access to a lot of funds. So quite early on, and we said, okay, we have to be able to finance our own growth. And we have to make sure that we got all times can ensure financing. So we need to be profitable. We need to generate free cash flow, be cash rich and be bankable. And I think, in these times, thank God that we kind of stuck to our guns and never attempted to grow at all costs and disregards unit economics or profitability. So that's why I think that we are kind of in a strong position. And in all modesty, we have been able to put kind of checkmarks to most of our parts. We believe that we're in a strong position with a relevant selection. We are controlling a bigger part of the ecosystem. We are important to the brands. We own the customer relations, and we're taking bigger and bigger share of the value chain. We kind of -- we phrased -- we wanted -- in '19, we said we want to be the largest online department store in the Nordics, supported by strong category expense specialists, control relevant parts of e-com ecosystem. And I think that kind of the only place where we have deviated is kind of the part of -- supported by strong category specialists because we thought, okay, our learnings from when we launched Beauty, which was a kind of a bumpy start. Our idea was to kind of maybe we should acquire some category specialists who could help us build category expertise within different categories. The problem was that we just couldn't find anyone that made sense to buy and the price was just the way, way too high. So we decided to build it ourselves. So that is kind of the -- I think kind of that is what our destiny is that we always end up building ourselves because we believe we can do it better than anyone else. And so far, we've got to do that and luckily so because prices at that time were just almost ridiculous. This is kind of a proof point saying that we've been profitable since 2016. And also we have been kind of the fastest-growing shop in -- amongst our peers. So we are quite kind of -- so we think that kind of -- if we kind of put a status on what we intended in '19, we can put a lot of checkmarks, and we believe that we're in very, very strong position going forward. But what does that mean for kind of our strategy going forward? I believe back in 2021, we came out and said, okay, if we want to be the leading Nordic department store. For us, it was a big thing because when we launched Boozt.com, that was the idea from the beginning. We want to be a department store. Our investors said to us never ever tell anyone that you want to be a department store because no one wants to invest in a department store. No one wants to invest in a store that has an escalator, right? So we said okay, but this is what we want to do. And we believe that this is kind of the right thing because the concept of a department store is the right thing because people want to go into one place where they can kind of be quite sure that if they buy something, it's an okay buy, and we have made kind of the initial preselection. So it took us a while to kind of get it out in the open and make it also clear to you guys, what is our intention? And we said, we want to be a Nordic department store with a big emphasis on Nordic. Our ecosystem, we want to kind of -- want to stay on course. We have now believe that we are strong in all the categories. Mads will come back to the categories. And then you have Boozlet and you can all debate you because in the beginning, Boozlet was very far apart from the Boozt. We try to kind of keep customers away to Boozt and Boozlet customers, away from each other as much as possible. But over the last couple of years, they're getting closer. And now kind of we make no secret about that Boozlet is the outlet of Boozt.com. Mads sometimes says, it's the seventh floor of our department store. You're going to say is kind of -- is the house next door where people can buy off price. But Boozlet, of course, and the -- is a big part of kind of our horizontal system. And then we have kind of our vertical part where we have BooztPay, our payment system let me say so, our brands, Boozt partnership and Boozt intelligence. And this is kind of, for us, the core, and this is something we are kind of building on and we just started to build on. We believe that our positioning is quite strong. We set out we want to be in the mid- to premium segment. And the reason why was that in an e-commerce market where you have free shipping and returns, you just have to have a high market size. Then we said, we can't beat all of them in Europe but we can become world champions in the Nordics. I can give you a smart answer I guess, I was in Central -- I went in the U.S. 3 weeks ago and met a manager from one of very large fund. And he had been discussing with his analysts because they were very much into kind of e-commerce, both in Europe and also globally and said, he said to us, you guys, we believe that you are in the sweet spot because if you look at the enterprise level, you don't want to be there because. It's blood red. And now with Shein or shine or Shein coming in, it's going to get even worse with low basket size, low margins and nobody is going to make money. If you look at the luxury segments, the thing is that, in their view, if you want to buy the luxury brands, it could be good to you, Prada, Louis Vuitton, Hermes, you want to kind of engage with the brands and the brand owners. Of course, they have third-party marketplaces or shops, but they give kind of a limited access. So -- and they have the control and they own the customers. So it's also going to be very difficult to be profitable in that segment. But you guys, you're in the Nordics. Your brands are small to medium size while you are the biggest customers. So basically meaning that you have the basket use economics, plus you have a kind of a strong position vis-à-vis the brands, and they don't have the muscles to go full out in a DTC strategy. So in their view, we have placed ourselves in a sweet spot and kind of -- I said yes. And of course, we agree and we intend to stay there. And also I think that the biggest proof point is our basket size, and we've updated with our 2022 numbers. And we have our European peers with '21 numbers. And actually, all of our peers, the basket size has come down. And we are comparing basket size ex-VAT and after returns. And we can see that our basket size is some 80% higher than our peers, and this is where the money is because our kind of cost structure, be it fulfillment costs or distribution costs, Sven will come into that later, are pretty much the same. So in the end, it's all about what is the absolute margin to fund. And this also fund kind of the rest. And this is also why we believe that we are the most profitable e-commerce business in Europe. And there's also a wise credit that we'll continue to do that because it's extremely difficult. Once you have placed yourself in a market or in a position with a low basket size, it's extremely difficult to get that basket size up again. Also, there's a lot of talk about after COVID return of the physical store. It's now kind of yes, guys, you had some tailwind went during COVID, but now the consumers are going back to the physical stores and you will find out that kind of it was a windfall thing and now kind of the empire strikes back. That might not be the case, but we can see that we don't see that the physical store is getting more competitive. It's very difficult for us to get reliable data here in the Nordics and Europe. So we just took some U.S. numbers because the U.S. also is some months or years ahead of Europe and the Nordics. And if you look at U.S. retail, and it's also including grocery stores, we can see that, yes, there was a big spike in penetration during COVID. Then it went back. But if you know you don't have to be a big mathematician to see that kind of the -- is the same and the same. So we still believe that basically, we're on the track and it's just a matter of time before online will be bigger than offline. And if you look at the Nordics, our estimate is that the forces that have been driving the online penetration so far, that could be the selection. It could be the convenience, pricing and then cost structure because we can deliver a garment to a customer at a lower cost than anyone in this region. This will all push this field of course. We can take some of the profits from that we can take ourselves but a lot of it will be given back to the consumers. And this will price e-commerce penetration. And our kind of -- in our view is that at the latest, in 2030, it will be 50-50 in this market. So 50% of the fashion apparel lifestyle market in the Nordics is online and in 2040, it's 60%. And so we believe it's just a matter of question of time when the online market is bigger than the offline market. And this, it might be sooner because we don't know what happens when things accelerate. We can see that, for instance, if you look at the stores, if economics in a physical store, and we have a lot of small, medium-sized stores in this region, they don't have the money. So they can't buy upfront. So the selection gets worse. And the thing is that -- has taught consumers that you have huge selection and you just don't want to go into a shop anymore and they don't have the item that you want in the size that you want. So you go online. So -- and it's more or less almost as convenient to buy online. So I think that this will push consumers more towards online retail. And this also -- and a lot of you have seen this before, the market potential is still big. We've estimated in '22 that our -- the -- on Nordic on market was around SEK 110 billion. And our market share of that was around 6% online. And if in '30, you have a 50% online penetration, that means that the market is at least SEK 200 billion. And of course, we want to have an even bigger share of the market. And then we just show kind of also kind of in Europe because we have -- we are now less than -- around 6% of the Nordic online market. I think we have 0.01% of the European market, and we have no plans on getting to Europe, but we might do some kind of targeted parts of Europe, especially maybe with Boozlet. So there's a lot of room for us still to grow and especially in the Nordics, where one wants to stays. So this was for us to say that there's ample growth opportunities, the market will continue growing, and we will continue to take market share. So this was my final slide, and I think now Peter will tell us how we will do this.

Good morning, everyone. Again, can you hear me? Goes through? Good. Let's see how this works. Okay. Good to have you here, and good with the people online. Like Hermann said, I will try to take you through some of the commercial area today, and you have a session. So like Ronni said, take some notes, and then please feel free to ask once we get to that. I think it's been an amazing ride that we've been on is fun. I could tell long stories about why I chose to join. Hermann is one of them. Another one is actually breaking free of bureaucratic big organization coming into something that is agile and small and starting something up from the beginning along with actually doing the commerce, e-commerce or whatever you call it, instead of reading about it. So I think that's some of the things that I took with me coming into this. And that's also what I actually see 10 years-plus later, that the organization is still eager to get when we onboard new people. But turning in, I think, the 11 numbers back in time, around SEK 1 million, something like that. We didn't really know if it was gross or net. We have trained a lot since then, and then turning in Sandra and the team recently the result from last year, close to SEK 7 billion. I think we have come extremely far, but I also think that there's faraway room for us to grow. And I will try to take you through some of these things. I probably have brought too much, so -- but let's see how that goes. So yes, I think if Hermann just touched on it, I will just briefly do it again, but I think our vision is crystal clear, and it's there from the beginning, visiting -- saying, okay, we want to do that just online. So that is crystal clear. We haven't moved away from that at all. And at the same time, I think taking each category by category, that's also the journey that we are on. We want to make every single category a champion within its own, so competing against pure players. So when we take fashion, this is where we are the closest to be the destination as we want it to be. We can still tweak some things. And if you take Sports, Kids, Beauty and Home, I think we have a lot of room and things to do will go on. So staying focused on building champions and destinations, and Mads will talk more about that. And at the same time, we also see an opportunity in our strategy to do the verticals and do more with having customers, having data and having built a lot of tools and models that can enable us to make money. And I think just like we announced this morning that if we see far ahead on the long term, I think we can do a big share of the market, 10 plus. We also believe that we can make money and I think the vertical act as a big part of that. But if you take fashion, I think this is our core. This is women and men deciding on buying something for the convenience, for the speed and for the Nordic curation. We have had around 6 million into our business buying 1x or more since we started. It is the core of who we are, and it is and will be to the very end. Also, if you look at the market in general, I think somewhere around 50% of the household spend lies within women's and men's fashion. So we want to stay and grow and make sure that we built this area. And Mads will talk a little bit more about that when he comes on the stage. Kids as well. I think Mads and the team have done amazingly good in building a strong Kids department. I think, in the very beginning, we discussed quite a lot, should we have Kids or shouldn't have Kids. And the more we kind of saw into the data, we could see it makes a lot of sense. There's something around the average order value that gets higher, kids return is lower. You're not that into the size if it really fits our kids. So something worth there, and we've built on to it. I think we still have a lot of room in this area to grow. So we have eternity, so pre-born and then we have born. And then we have born and then we have all the way up to actually buying into the women's and the men's category. So this segment is interesting. It is actually quite difficult, but we will do it probably and we're buying into it. Same thing with Sports. Sports also a good area and complements fashion in many sense and have done that over the last couple of years. I think in this area, we have turned just around 1.8 million customers over the period. And again, a very interesting category, and we want to be a champion, especially within running, fitness, outdoor, hiking and a few things around team sports. Mads will touch on that later. But again, I think a big opportunity to give all the Nordic people easy access to good sport brands. And the good sport brands really is the key here as we see it. Same thing as we have done within women's and men's fashion, we believe we can strengthen within the sports segments. And we have come far I think we have good room to grow here over the years. Beauty as well, interesting category, complements our core again a lot. And we have also here, turned more than 1 million customers into this category. The good thing about this category is that again actually lifts our average order value as a combination of buying into both fashion and beauty at the same time. I think the recent numbers indicate around 75% now that is buying something else and Beauty. That means a lot because if you look at the Beauty, the item price is relatively low. There's a lot more to sell a dress at SEK 1,000 or a lipstick at SEK 100 or SEK 200, but the combination actually kicks the value for the customer, which is again strong. And we have done a lot to make sure that the department kind of cross-sell Beauty together with the other things instead of running a beauty store and competing one-to-one in the digital arena and online performance because that's tough. But having a department place and then building on top of this category makes a lot of sense. And recently, we launched the Pleasure section within the Beauty area, which we also believe will do us good and as well actually enlarging the portfolio. So Beauty is for the whole family. Home, the newest born in our family. It's been in our heads also from the very beginning, but something about Home and Home assess and then Home bigger size item. But we also believe that this is key to our departments, though also because we live in the Nordics and we spend, as household, a lot more money in actually this area than the rest of Europe. So really an opportunity for us to accelerate this within the coming years for each of the different rooms, even room outside. But I think Mads will also touch a little bit about this later on. Booztlet, not least, I think you have seen it in many of our things previously, but Boozlet is really key to our business. So Boozters, the department store with all the new things to the season, Boozlet than the destination where you get the good offer. I will come back to that later on in the presentation, but the two companies together really goes hand-in-hand. So on our way to building this department store, we've never really done. We have a lot of things to make sure that we optimize as we go. So putting in new categories and subcategories into our store across the different devices means that we need to make sure that Jesper and the team, which they do constantly develop the structure of our backbone, enabling us to present it in a proper and easy way to shop. It's kind of key. So you want to make sure that when we get someone to the website, they can see this is about as Kids, Sports, Beauty and Home. And if you're into Sports, you want to make sure that you drill down to Sports and the categories quite fast. Same thing goes with this area that we work in, we need to help, we need to guide. And this goes for the -- for the occasion or it can go for the running shoe with pronation. So constantly, trying to work with content that enables us to sell and guide our customers even more. This is also an area that touches the vertical access and our ability to earn more or make other revenue streams, obviously, tailoring these types of things to our brand partners and then showing us showing them to our end customers. Last, but not least, in building this brand, we have done a lot, and we still do in the Nordic market because it is key for us to be extremely relevant across the Nordics. It's not the same market. It is actually quite difficult. It's relatively small when you look at it. The greater Nordic, probably around 30%. If you got down to a target around 20%, you want to handle all these activities as local as you can, both on the assortment, both the curation, how you present the different styles within the different subcategories gets a little nerdy but it's key to the conversion. You also want to make sure that you come out and build a household brand and a part of the society and part of the community. And there, we have invested quite a lot, started out in Denmark. We have been part of Knaek Cancer association, and we have moved into the sports arena because that meets a lot for the population. So we have done soccer. We had done handball. We are doing running different tracks. And we're doing some of the same things in Sweden with the Handball Federation both for women and men. And -- which I think is one of the biggest ones in Europe. The cool thing about this is actually our teams are capable of activating these initiatives with the partners and making money at the same time, simply because you sign up, you get some ticket or you get a package, so we deliver it fast. So it's true to what we actually want to do. And then when you're done, we celebrate and there's an opportunity to sell more. And I think all these things thought into the machine room, which works. Then I have brought something, which goes way back. Back in the days when we started, we didn't really have any customers. So it was all theory but I think really well time spent where we are today. It is our segmentation model and it's quite basic. So if you look at the vertical axis, you see three segments of value. If you look at the horizontal axis, you see five segments of behavior. It gives you 15 segments. And what we do here is that we calculate the value every single day. So you buy something, you return something. You buy at discount or you buy at full price. You mark your favorite brands or you leave something in the basket. Everything is stored on that customer ID and then stored in the backbone. So Jesper have enabled us to build unbelievable system and ecosystem for the rest of our channels internally. So we shoot it to the customer service, so they know who they're talking to, how they can prioritize, both links and calls to respond as fast as possible, especially to the top tiers, which is our most valuable customers. It also serves for the CRM kind of what goes without mentioning, but if you have good customers and they lapse buying into the normal frequency of buying, we will do something to win them back. So that's all set up in systems and they work with that every single day. It's also for the media buying team, where you can say, okay, you have bought something that doesn't make sense. They don't create value. So the question mark customers at the bottom, don't buy them again. So kind of actually working with these segments, so you don't buy them in Facebook, YouTube, Google, et cetera, where you actually can apply those rules. Then out of this model, obviously, comes other ideas and one of them being with Hermann and the media agency, we thought we can do a Boozt media partnership, something similar to the media partnership that Hermann was doing previously when I joined. We did that back in the '14, '15, had these initial ideas. And everything we have done and do ourselves with the segmentation model, how we can approach different segments is actually the foundation for Boozt media partnership. So we used the same methodology, we used the same models and we executed on site in -- offsite and make money on that. Besides that, we looked at the data behind and say, okay, some customers, we can't make money on. Back in the days, it was a larger chunk. Now the chunk is smaller. But that was the initial idea is actually for opening the Boozlet. So again, back in '14, '15, saying, okay, how can we actually approach customers that buys with a lot of discount returns a lot and that -- is having that profile, okay? We can do an outlet, and we can put in all the clear stock so Boozt is fresh, and then we can introduce a fee of actually for getting a good price. So you get a good price and you pay for the shipping then the model works, and then we can make money, and that's what we're doing today. Out of that also came some customers that actually cost quite a lot and calls customer service quite a lot and is also having a lot of claims. That's what we call non-fair usage. And that's a very, very small part of our business. But they pollute the rest. So it cost a lot to handle these. And then we decided back in 2019, prior to the Q4 and to the black days, we simply blocked them. We need to block them because it's not good for our business. All the other good customers suffer because of these. So we blocked around 10,000 customers. And today, I think we have blocked around 40,000. And some of them we have to open, some of them will be blocked forever. But it makes a lot of sense, and we save a lot of money. Further, I'll touch on it later, we'll do the club. So that's out in the open, and that obviously also ties into the segmentation. So we have some customer that really is high value, and we want to work with them. This one here, many of you might have seen before. It is the single most important thing for our business. When we look at the customers, we want to make sure that we move customers from left to right. So moving them from buying a single category to actually buying into -- Kids, Sport, Beauty and Home to buying all our categories. And if you take numbers from the last 12 months, if you have a woman buying into the fashion category, we will get SEK 1,000. But if you have another woman that actually buys into all categories, you get 20x that. So you get SEK 20,000. This is also giving us good hopes for the future because within this live penetration supercharge thinking. So when you buy into more categories, you end up buying more from the individual categories. So the women here that buying into all categories will buy for SEK 7,000 in fashion instead of one category SEK 1,000. So the hard journey is for us to move them across the whole business into the department store. And I think this one gives you maybe a little bit more insights even though it might be a little difficult to read. I think on the axis you -- on the vertical axis, you have the recognition to our different departments. On the horizontal, you have the number of people that have trialed the different department one time. And if you look at the Nordics again and believe there's 20 million plus out there to capture and to trials, and if you believe that you also can get a level of recognition as a power brand in the Nordics of around 90%, then there's lots of room to grow. So if you take home, for instance, our youngest member of the family, we have had around 0.5 million trying us and we have a recognition in the market around 15%, 20% depending on if Sweden, Denmark, Norway or Finland. And then you mature and then you get to the Beauty stage and then you mature even more and you get to the area where we would hope to create a destination, and we are not there yet on Kids and Sports, but we are far. And then women and men are up there. We can still do some things. But at the end of the day, moving the awareness, moving the trial, that will enable us to deliver on our long-term hopes and projections. And I think again, this one proves that there is potential out there because this one indicates that a Nordic household will spend around SEK 40,000 a year on the categories that we have on Boozt. So they have around SEK 500,000, SEK 40,000 of which are spent into Fashion, Sports, Kids, Beauty and Home. And if you recall, the SEK 20,000 that we have on our customer that buys into all categories, it's half of what they're spending. So literally taking share of wallet of 50% on the ones that spend the most with us. So lots of room to grow. This one tells you a little bit more about last year, the composition of audit department. So you see the ones that are buying into our -- all categories is around a couple of percentages. So lots of room to move people the way over. And then you could ask, have we moved some? And I can tell you we have. So it's good to see that these curves are moving up and that we are moving people into 2, 3, 4, 5 departments. So moving just below 200,000 last year into more categories. So these are the cohorts that we constantly work with. And when we do and when we get them to buy combined, this is an example I've taken Sports, and Sports is the area where you actually have the least single revenue when you buy Sports alone and also margins that are lower than average. It just tells us that when we combine Sports with women or with men, we make more combined. And we make more also due to the fact that the return is lower. So all in all, it works. This combo effect also works when we look at both Boozt and Boozlet because, like Hermann said, it is our outlet store. So some of our customers find it interesting to get things on a good price, even though it's not the current season. And the latest number is that we have around 12% of our customers that have shopped and Boozt shops. Again, here, we can see the value net-wise in a year at double, so around SEK 2,000 for Boozt alone, if you shop in both Boozt shops do and more than 4x if you only shop in Boozlet. So I think big potential also here to make sure that they don't go somewhere else to buy something that is inexpensive. They rather get the good brands that have -- that have been on Boozt, but now it's in Boozlet. Then I will just spend a few minutes on things that are in the making. So they're not live just to disclose that. It's not on the side, and it will not be for a while, but it will be later this year. And I think this area is obviously to build more loyalty and to drive more multi-buyers. That's the whole purpose of the club. But the club also gives us some opportunities in a market that gets more tough to operate in if you are e-commerce. Google makes it tough. Facebook makes it tough. Payment providers makes it tough. Everyone wants a piece of the cake and GDPR and price regulation makes it tough to be a marketer or commercial person like Mads and me. But this club enables us actually to differentiate the pricing towards the relevant customers and it also gives the opportunity to be in dialogue with our customers in another way simply because the app will entail a wallet and it will also entail inbox. So the dialogue will be in the Boozt and in the app, and that means a lot. So we launched a club. It will have the model segmentation model underneath. So we will use all the tips and tricks that we have done in the past. We will have the most valuable customers in there. You will be born with benefits. And I think that's some of the annoying things if you look at clubs in general, you always see this sign up for this club and get this great offer. And then you sit back and say, okay, I've been shopping there for years, what do I get? We will turn it around, and we will offer the best conditions for our best customers. So you will be born with the benefits. You just have to pick the things that you believe that you want yourself. Is it services? Or is it prices that you want to have throughout the year on your favorite items, favorite brands. So we believe that makes a lot of sense. And it all stacks up. So you will as you buy, you will get more. So I think we want to make sure that turning you from 1 to 2 to 3 all the way through the partner store will lift your benefits and will give you more services. And on the service dimension, they will be offered something like you do today, even though we have 1 to 2 days in general. We will also make sure, together with Sven, that if you really want us to pack a fast track, that's what we will do for you along with other relevant services. This is very nerdish, but it is very important, and it is simply because Google, Apple mails, it worked 10 years ago. It still does. It doesn't work as well. iOS and Apple pollutes all data around the performance on mails. Some of them actually disappeared. Many of them are open, so you don't have the same data. We will, with an inbox and a wallet in this actually be able to control our data much better. And you probably also know yourself, if you get an SMS, you look at it 99%. Same thing with a notification. If you get an e-mail, it's not 90%. So I think that whole behavior is going towards away from mail and into some of these areas. And Jesper and the team are building something that is very strong for us to utilize across masses and my team. Then I will just touch shortly on our vertical strategy, and that is BNP, and that has been part of our journey for the years and still is and the different models. And the segments that we have are being used by a small team that serves all our brand partners. And the cool thing about this is that you can have the opportunity as a brand to introduce the new style to the customers that love your brand -- that loves your brand the most or you can just like we do, say, the ones that haven't bought with us for a while, let's get them back. So you have the opportunity to actually work with your customer base at Boozt very, very well. We have a lot of campaigns through the system. I think somewhere between 15 and 20. It's good traction, and it's constantly increasing. That's nice because it's a win-win thing. If they see opportunities and we can flip this together, they were they will see that Mads will buy more, and we will sell more. And at the same time, there's a lot of profit for us, obviously, monetizing on the data, on the exposures that we then offer to our brand partners. Same thing goes for the newest born vertical idea that we also have had for years and have worked for. This is, again, giving our brand partners the ability to work very professionally with the teams, Mads team, my team, and see what is actually happening. So you can see your sales down to SKU level, down to country, down to regions, you will be able to see what performs. You will also be able to measure yourself up against the peer set. You will not be able to see the nearest competitors, but you'll be able to see that you actually have an opportunity to grow a business either in Sweden or within jackets that you have lost attraction on. So this data really enables our partners to act. And once again, we have built it, we have the data, we have the customers they obviously have to pay to use this. And we launched it last year. I think we had plus 20 brands using it for the fourth quarter. And they liked it. And then we launched it early this year, and we have trained a lot of brands already. So I think good promises on this end. I know we have guided this area within our last chapter. I think we are very positive in regard to making other revenue stream in this area. We really see good traction. So to conclude some of the things that we are focusing on, and these are the most important ones. We want to continue to build the normal department store. We are nowhere near. We want to make category channels. At the same time, we want to make sure that the single buyers turn into more buyers and multi-buyer at the end of the day. Remember, not even 2% setting all the over to the right around 50% of the share of wallet. So a lot of potential still there. And then we want to keep on finding good ideas and doing systems and building vertical remedy teams. And we already have a couple of other great ideas that we will materialize within the next year or 2. So yes. Mads, over to you.

Thank you. Thank you, Peter. I joined the company in August 12 as a consultant and reasonable after talking to Hermann and Jon, it sounded interesting. After reviewing the business, it was a little bit more shady. We didn't even have season codes back then. And we had a portfolio of, I think, 20 brands primarily within the bestseller group, so affordable fashion. But after a couple of months, we had a meeting in Copenhagen, discussing our long-term dream and that was to build a department store. And with that team, we have 40 people in -- with those people, so many smart people around you. It just seems, okay, this could be a fun journey to take. And the rest is history, I would say, because we have managed to build something very unique. Just short of my department, as you know, consists of buying, merchandising and supply chain -- in-house supply chain. Buying consists of -- or take care of negotiation brand portfolio, brand relationship, which is even more important today as the world changes, all the time. Merchandising is stock management, optimizing on our current stock, taking action on the good stuff and also on the less good. And then we have supply chain, which is the data supply of goods towards the warehouse, optimizing on our processes and on our flow. We have a very -- coming out of a very strong foundation around data. Everything we do is based on data. And after 10 years, we have plenty of data, which means we can take decisions based on not only current performance, but also how the history developed in good times and less good times. We have a strong KOY for everything we do, and the organization is very much built that a lot of people got a lot of responsibility for their area. So the KOY for each and every SKU is super important in our daily operation. And we are very much day-to-day handling the business and delivering the targets, but also have a mindset that we cannot create a terminal stock issue behind us. That will lose relevance for the store and it will also make it difficult to buy into the future. We operated three seasons, the season we come out of. That is not something we forget about. It needs to be handled because that stock will be there if you don't do anything and just focus on current. So that is important. We have a goal to achieve 99.5%, sell within 18 months of a seasonal buying. Current season, the newness and making sure the site is optimized for the season, making sure that we take action on the goods. We own our stock, which means we have the mandate to act on the stock if it doesn't perform, and we do that every day. We are not waiting for a brand partner to call us and say, please discount our stock. We do it as we believe is relevant towards our customers. And as the customers now are changing their behavior monthly, where in the old days, it was probably a yearly thing. Now it is kind of every week, something new happen to the environment to the world, we need to meet the consumer, and that is what we are doing and what we are doing with great success. And then, of course, we have the coming season this time is [ AB '23 ], which we need to plan for, we need to buy, and we need to make sure it is the right portfolio. Historically, we have been buying 80% upfront and 20% open to buy. That kind of was okay. Previously, when you had a high growth or when the environment was more stable. Now we have changed to a 50-50. So we have 50% of our money to buy in season. That is for NOS. It is for reorders of seasonal buys and it's for campaign stock. That gives us the agility to meet the consumer and adjust our buy and stock levels accordingly to where the consumer. And also they are changing. Right now, we see a big change in consumers moving away from more nice-to-have items going into more need to have. And that we can then optimize as we go. 2022 was a good example. Now my first slide is coming there. That was a long introduction. I think 2022 is a very good example of how we work. We thought it would be a post-pandemic happy customer environment, back to party, back to buying whatever you need. So we had -- we came into the year with a high stock level. We also have a high commitment -- upfront commitment increase. So we thought, yes, it's good. But already in the end of January, beginning of February, we saw the first signs that something was off with the customer. In February, we activated our trading. Said, we need to do something now. We are not waiting for others to tell us what to do. We do it right now. And we managed throughout first half to bring our stock to a reasonable level. We were not happy with our sell-through for SS '22, but it came down to where we say, okay, it is not a terminal risk. We can fix this in the future. Then the next issue occurred, AB '22 was also brought up with a high growth for upfront commitment and other stock came in. Q3 was difficult. But then in some very good way Q4, Peter made an amazing commercial plan, and we managed to get our stock down to the same level as we had the year before. And for me, that is just key because you can be a success in the short term. But having a good relevant and aligned stock level is just important for the long-term profitability of the company. Looking at the bottom of the slide here, you can see the consumer sentiment in Denmark, who historically low, actually never tracked lower before. This is our journey to become the greatest within department stores. And 10 years ago plus, we sat in this tower in Copenhagen, and we said we want to be a department store. And from there on, it was a tough journey because we didn't really have money as we could have spent. But we took it step by step. We are coming out of fashion, men's and women. It is the right place to come out of. You cannot build a department store coming out of a beauty pure player or a sports pure player because the integrity is not there. And the core principles of running a retail store, stock management-wise, is just sitting in fashion. Our portfolio today is on its way. For men and women, it is super strong. We still have brands that we want to add. Of course, there are still brands that say no to us. But we don't have a critical brands we are missing. For our Kids category, we are getting there. We are the best within clothing and shoes. We are getting to become the biggest within kids' toys within a couple of seasons according to the partners. And we will be soon able to sell kids strollers, car seats, bedding and so on as a part of our strategy to be able to send out bigger items. Beauty came out of a niche. I think Hermann said it, it was -- we didn't do it right in the beginning. But looking back, we probably did because we became a niche player. The partners thinks that is a very special place to be. And from that on, we have grown now into becoming a volume partner. We are catering to the whole family and the beauty category is getting there. And as I stated in the beginning, we want to be equal or better than any pure player in the market. So if you say in Denmark, [ MHS ] is the best within beauty, we want to be equal or better than [ MHS ] within beauty. For Sports, we have tried a lot, and I think that is also the power of being a multicategory destination. You can actually try stuff within a separate category without hurting the overall business. And we have tried several things when in Sports, but come to the conclusion, we need to be the best within running, fitness, outdoor and team sport. Those are the biggest categories. That is where the biggest brands want to be best, and that's where we're going to be the best in the market. We've come far away. And I think we are there now on the portfolio, it is obvious that we are missing one brand, Nike. And we have had kind of a one-way dialogue for many years now, us contacting them in different ways. We don't get it. We have a super elevated premium cooperation with Adidas. We are the biggest partner with Adidas in some of their main categories in the Nordics. We have a good relationship. So we will continue to contact Nike. And then, at some point, they will hopefully say yes. On the Home, our news category, we have come far. I think it's a 2-year old category. We are -- we have a really nice selection right now. But we are also missing the larger items that is a part of our short-term strategy to fix that. Functionality-wise, in the beginning, we thought men-women that you can just copy two other categories, the functionality. The look and feel, you can't. You need to be specialized in each of the categories. We are doing that now together with Jesper's team. And all in all, the portfolio and the credit and the functionality is giving you a credibility towards the customer. And that is where we're getting to soon. And main part, I think, for me, but I think for any e-commerce or retailer that is stock management to be able to have the right stock at the right price at the right time. That is key. You don't want to have too much old because then you lose relevance and your margin will be hurt. At the same time, you want to be fresh and new and having the right goods, but you don't want to have too much because the environment is changing all the time. So this is a key for us. This is how we perceive the current categories. We are always pessimistic, realistic when it comes to our own success. But we definitely have a lot of potential for our categories to grow. This is how we see the future. It is an estimate. But looking at our current -- how our categories grow, and how much we -- how much potential we see in each of the categories by taking more market share and adding more brands and styles, we see that our shift going from 30% today of our new category, 70% is men and women, we think that will shift around within a future to 70% new categories and 30% men and women. Men and women will still grow. There is still growth here. We will take market share, but there's so much potential in Home, Beauty, Kids and Sports. This will, of course, mean that our return rate will go down. And we will increase the share of the wallet, which what Peter talked into. Our average order value will go up, our costs will be better and therefore, we will improve our profitability. So a strong potential for the company. Short-term wise, this is what we are focusing on. Stock management is everyday thing for 100 people looking into this, optimizing buying what we need to buy and getting rid of the stock that doesn't perform. We need to meet the customer mindset. You can't plan that an event. You need to do it every day, looking at the numbers, looking at how they act on the site, the conversion, what are they buying and then motivate them through that. We are adding on premium designers on our men-women category. We believe there is a gap in the market to take a little notch up. It is not luxury, no, but it is to have a little bit more of the premium goods in our store. We can see our customers would buy into it. And of course, it's a journey because the brands expect something different from us, and we are working on that. We believe affordable fashion is key right now. We can see there is momentum within the cheaper brands towards the customer. We have adjusted for that already during Q4 into '23. We need to retain the brands we have and get some of the brands we have lost back. But of course, D2C, marketplace, too many doors are the excuses that -- or the reasons that -- some of them left us. At size, as I mentioned, for homes and kids and then we are aiming to move more of our manual work towards the brands instead of us doing it. The brands needs to provide us with the data to enhance our product detail page. And then we need to build the four new categories into destinations, which we have done for men and women. So it takes a little bit of time, but we are on the right path.

Good. Thank you very much to Mads and Peter, also you, Hermann. We are actually -- I'm a little bit surprised. Peter was faster than expected. So we have actually a little bit extra time for Q&A. Hope you guys have some questions prepared. And then yes, Mads and Peter -- collaboration, will do their best to join the company. Just for the sake of the people online and for the people online, you are able to type in your questions, I will see them and I will ask.

Niklas Ekman from Carnegie. A couple of questions. Maybe you can talk about the department store strategy a little more on what kind of white spots do you see where you don't have a presence today? And I'm thinking in categories like jewelry. What the potential to expand more in premium or even moving up to luxury electronics? Anything else that you think could be interesting or not at all interesting.

I think that the power of the online department store is that we are able to deliver the same quality of goods as a physical. We are able to have a wide range of price points without that diluting the floor plan. And most important, we can use the e-commerce power of not being -- not having to get a floor space, meaning we can expand as much as possible as long as it makes sense for the customers. And I think fine jewelry, we are into fine jewelry. There is more potential there. Other categories could be interesting, but we are ambitious, but we also want to do that -- do now, right, because the potential is there right now. But there is -- in essence, there's no limitations on how many floors you want to add to your department store as long as it makes sense for the customer. I think coming out of fashion, it is you can expand a lot.

Another category. You talked about bulky products or bigger products. How does that go with your auto store solution? Are you looking at ways of circumventing that or just expanding to warehouses that can cover bigger products as well?

Yes. They are tough to jump up and put into the auto store okay? Something is wrong here. Does it go through. Can you hear me? Okay. Sorry. Yes. We believe that the home and the big item could be key for completing the home as an experience to the consumer, and we know that these items will have to be placed in another warehouse, and Sven is looking into that. Furthermore, we also need that bigger items cost more to ship and probably needs to be carried up, maybe, to the consumer to make a good experience. So we're looking into all these things to create the best possible experience. We have already developed features in our checkout that enables us to charge a price if the items get big and the cost of serving that item is too costly. So I think we can create a good experience around that. And back to the premium and design questions from before, I think that's where we are moving in already. So both within women and men's fashion. We have some ideas around how to do that, how to serve the brands in a way where we leave more closed garden for some of the brands to be like in a curated store that they want to be in. So I think we're on good track there.

And how big a share of your assortment today or of your orders today do not go through the auto store?

So orders through today, Sven, where are we at the moment?

5% to 10%.

5% to 10%.

Benjamin Wahlstedt, ABG. So sort of adding on to Niklas' question, what sort of capabilities would a new vertical require in terms of staffing, for example?

On the categories?

Yes. Sort of a new vertical, would that entail a new purchasing team, for example? Or how does that work?

We tend to run on a low staffing in general. I'd rather have a few people who got a lot of responsibility than many doing little. Adding on a new category is a totally new category. So another floor will, of course, demand a team -- a small team to handle that. But with our -- the way we work and the tools and the processes and kind of the whole foundation of the Peter's team, it is fairly easy to add on another category for us. It is more for the platform team to develop and for marketing, Peter's team, to promote it to the customer. But it's not a heavy headcount thing.

Could you also perhaps discuss bulk discounts? I'm sure that's highly relevant for you. And sort of as you grow going forward, is it possible to quantify the incremental positive effects from bulk discounts as your orders get larger?

And part discount meaning?

I would assume a larger purchaser gets better prices than...

So our agreements with the brands?

Yes.

Yes. I think generally, we have a strong set of agreements with our brands. We are pushing on more than just discount on the order. I think BDI, as Peter explained, BNP, other income is -- for now, when we look at our P&L is probably where we can see the upside. I think we are quite good on our purchase agreements.

Yes. And then if we sort of look back to Q4 '22, it's my understanding that your relative outperformance to the market is not only due to maybe deeper discounts than your peers, but also a more relevant assortment. This is aligned with your view of Q4? And is it possible to sort of project that going forward? What's the main difference? And what have we learned from that into 2023?

Let me take some of it. And I think to answer part of your question, I think we are not afraid of attacking. So even though we come through a year where the consumer sentiment is literally all the way down, we still saw trends in the market that could enable us to capture more during the last quarter and months. And again, back to our ability to actually move our cohorts. I think that means a lot for us that we have the tools to actually go out and expose them again and again. And I think that means quite a lot. So if you have competitors that don't dare to spend money, and you have us that dare to spend with a higher [indiscernible] enabling us to spend more money, and at the same time, can find them in media and attack the base, then it gives you, obviously, more eyeballs than competitors with a good assortment. It enabled us to come home quite strong. So, yes.

Yes. Just if I can add on because the way we are working with our SKUs, the detailed level, which, of course, is mainly done by the system, gives us super insight early. And we rather want to act early than late, and that is probably where we succeeded in '22 by acting early, putting on a small discount, seeing where did the consumer was enough increasing, decreasing depending on our performance and therefore, coming in front of our competitors. So that is probably also a reason.

So basically staying more up-to-date than the competition?

Yes. Yes.

You also mentioned this season, we'll probably see more in-season than pre-season purchasing. Could you just give us the brief rundown of what that entails for your job?

As we have grown and gotten more knowledge about our business, it's easier for us to forecast how much is the critical upfront commitment we need in order to have the foundation in place and then using our tools to do early reorders, acting on a best seller, calling the brand and say, hey, we can take 1,000 more or 5,000 more there, doing some special markup units. So taking old hero style is producing that high-margin goods and then have room to discount it if it doesn't perform. And then our NOS [ nevada ] stock program has grown into a massive well-run business where we get new goods every 2 weeks. So it's a matter of -- as the consumer gets more dynamic, you also want to have a stock that is more dynamic and don't want to be fixed. This is what I got. And also we buy our stock ourselves. So we know what we bought. We know what the plan is with the stock. We don't have other people sending stock to us, and then they need to discount it. We own it and take action as early as possible.

All right. Dan Schmidt at Danske Bank. I just wanted to ask you sort of you're at 4% margin now, and you're saying sort of long term should be double digit. And if you look at the building blocks that you sort of described today, in terms of taking a bigger share of the value chain and you talk about the mix shift of new categories versus old categories, and on top of that, of course, economies of scale, which one of those or maybe others as well is the most important for you guys to get to 10% margin or above the long term, you think?

That's a good question.

I think you're jumping a little bit ahead in terms of the agenda. We will get back to more details on how we get to 10% and what -- yes, which part of the business that will drive what. So I think it will be better to take it later on to today.

Mike Benedict from Berenberg. I have three, please. Just building on the upfront buy question firstly and the move to 50%. I wondered how that changes your brand exposure over the course of the year? Are certain bigger or stronger brands less likely to sell to you in season? Or is that not really a factor?

In general, I think we have proven that it works, that we are able to get goods in the season. We -- as I said, we have put even more emphasis on our NOS program, which is potentially delivering 15%, 20% of our turnover on a full year. And that is, of course, dynamic week and week or by weekly. Of course, the brands want more money each year. And -- but as Hermann said, I think our partner relationship, which is very much built on a win-win situation over many years where we have been the smaller part of that negotiation now we are probably equal or better. We are able to move some of the upfront commitment from regular upfront to maybe SMU. We are doing block orders, meaning we are taking upfront commitment, but we are taking it on a later stage in the season with a discount if we can't buy it on normal price. So we are trying to mitigate the quest for any brand to grow year-on-year with us. The brands that are growing upfront-wise are also the brands that we believe is taking a bigger share of the market with us.

Great. Second one, just on Boozt Media partnership. I guess, unlike some of your peers with similar businesses, you've almost always already bought the product from them. So does that impact their motivations for using these media partnerships?

I would say not. And I think when we talk to the brands and when we work with the brands, like Mads said, it is a win-win. We encourage all the brands to work detailed and granular with any other business if they could because I would do so if I was sitting on the brand side. Having a brand, being a brand owner, I would definitely be able to cater to the customers that normally buy my products or know that some other related customers could be buying my brands. So I think we turned a little bit around and encouraged them actually to ask for the same things. What we experience is that they don't get the same things. So I think we have found a niche to develop this tool. A lot more details than many, if not all, our competitors, obviously, Zalando is having LMS, which is similar. But we also dare to put value on the new customers that they get in on a campaign period, which makes a lot of sense. So you run a campaign and you sell something. You would have sold something anyway, but you sell something more and you onboard new customers. We can also give them an indication of how much revenue they will then make on that type of customers and the period after. So I think we're quite confident in the model, and we spend around 10% on marketing. So we encourage them to spend 4%. We think that's fair. Some do, some spend more, some spend less, but we think we are in a journey actually to onboarding most of our brands. So that will to Daniel's question obviously enable us to lift that area and make more money in the long term.

And one more for me, if that's okay. In Hermann's presentation, there were estimates around the 50-50 online penetration split. I wondered if you could give us a bit of color on the assumptions, estimates sort of underpin that forecast? It is a number that lots of people have thrown around. Just interested to get color around that.

Yes. I think it is a long-term number. And then many are doing these predictions. It is a crystal ball. I think we have to -- they serve our right to take 50% share. I think online is on its way, make it easy, make it convenience, getting the brands that you really like. Let's see where it ends, but I think it moves in that direction. I don't know if you have...

I think we've put in -- it's a CAGR of around 7%, right? So we saw this plateau in 2022 in terms of online penetration after a few good years during the COVID and the close-down of societies. Before that, we had a CAGR of around 10% growing. We could actually see things returning to that kind of pace because some of the things that Hermann also mentioned, we believe that will push the customers towards online, especially in a period like we're in right now, where the consumer is under pressure in terms of disposable income. I don't think you will be too sentimental. You will pick the place that has the right selection and the right price, which will favor online in our way of seeing things. So not the same growth rate as historically. But as Hermann also showed, it's kind of -- there's a trend going on for the last 20 years, and we think that trend will continue. And then, of course, the big question is what is the end game. We say 60-40, around 20-40. It can be 50-50. It can also be higher. This is our best guess or estimate based on what we see today.

My name is Dan Ovin. I work for Nordea Markets. And I have one question on how you think about owning brands. So you had this acquisition of [indiscernible] a few years ago. And how do you think of that going forward? Is that part of your strategy also in the department store? And are there any risk around that perhaps in competing with external brands, et cetera?

They look at me?

No.

I think Sandra will come back to that. Yes?

We will touch upon how big of a part we see it as Boozt. I think you can comment in terms of if you see any risk with running own brands and then doing the majority of our business with third-party brands, if there are any opinions around that. Do you have a comment?

I think there's many things to that question. Obviously, looking at the potential margins you would like to do so if you can without like you asked for without polluting or destroying in relationship with our brands. So having a brand like [indiscernible] with a clear tight group, I think that can make sense but it also needs a size for us to scale it to where we want to go. So I think in the environment at the time being, there's also a lot of opportunities to grow with existing brands. I think that's what we have to balance at all times. And I think we do that and Mads team very well. And it's key. We all know that a strong brand can sell a weaker brand needs to be strengthened. And so we have to figure out how do we do that if we continue on that track. But we are a mid to premium the Nordic department store, and that's where we want to do. And that's across all our categories and that we will protect. So and that will be as vast, vast, vast majority of our business.

Okay. Perfect. And then another question is on if you take this 30% of sales that today come from other categories, I mean I know that you're probably not going to give me the exact numbers, but perhaps you can talk a little bit about what is the relative size of the other categories? Which ones are the bigger ones? Have you had more difficulties, et cetera? And if I just draw on my experience from Zalando and speaking with them, I know that they had quite a difficult time to grow the home business. They seem to have been quite successful with beauty, but home has been much more difficult. So have you also seen that? It's lower start, perhaps, et cetera. Maybe you can comment around a little bit about those individual parts.

It is actual here where Ronni would tell us, don't comment. I think we have actually commented quite a lot saying that it's -- the share is at the moment and that we see opportunities like Mads said on one of the last slides that share of the other categories, Kids, Sports, Beauty and Home, could go to 70% and that's a lot, but we think it can. And the reason for it is that simply the unit economics in some of the other categories, Beauty, low. Some of the Sports items relatively low. Home is obviously high, but making monies being a pure play in that can over time be tough. So we see really good opportunity to get out for the whole Nordics with these categories playing -- creating a champion. So a lot of growth, but we will not share more numbers individually around them unless you think that's fair?

I don't think it's a big secret that Kids and Sport. Also, as Mads said, we've come further with that. They were introduced earlier on, then you had the Beauty category coming in '17. Had some initial challenges and then you had the Home coming on in late 2020. Has been -- we kind of took the right decision from the beginning, meaning that Home today is not the same size as Beauty, but it has grown faster. So it is around Beauty and Home together, 10% and then Sports and Kids share the remaining 20%, more or less even. You got the numbers?

That's more than hope for actually. So I'm quite happy. Well, then finally, just a final question here on the repurchase agreement that you have with the brands because I -- you have grown fast versus others and continue to -- I assume, continue to close those type of agreements. And I think we're also seeing the effect of that when you look now at Q3 and Q1 margins looks much better over time. I assume it's a bit on that. So the question is where are we with that? Is there further upside on this? How many of the brands have you closed those kind of agreements with? What could be the upside from here on?

I think for the -- in our business, it seems like a line discount at some point, you reach a level of the -- the size of your purchase is at some point you -- they cap it and you cannot get more. So -- and I would say, for most of our agreements, we are having the best agreement when it comes to the actual purchase. But what is more important is how we can get other income out of the brands, and that is very much what Peter is talking about and what Jesper built, the BDI, BNP, marketing. So I think that is where we are focusing now. We are actually quite happy with our agreement. It is a combination of many things besides a volume discount, no claim discount, agreements on other stuff, marketing, data exchange. It is so it's -- it's more than just a bulky discount -- discount.

Okay. So you can say that the upside from that is already taken more or less. Now it's other things that...

Yes. But also, it's a mix for us, how we can -- one thing is your agreement, how much you get in percent, but it's also how much you end up in percent. And that is where, as you work with your goods and the way you buy, if you carry, or you care for it from day 1 and get it out on a lower discount, of course, you can make more money instead of waiting. So it's much more a dynamic game of trading and optimizing your stock. That is where the upside could be.

We'll take the last question.

Final one. So it's [ Carl Lever ] from Corning. I had a follow-up on Slide 51 or actually a few follow-ups on the mix shift, the 70%-30%. Longer term, if you could say anything on the time perspective, how far out do you expect that or the ambition? Is that 5, 10 years out? Or are we talking about? And then secondly, also, it sounds like from the discussion here that, that's primarily or the expansion in the -- if we take outside fashion, that's primarily going to be in home interior given that we're talking about higher AOVs and low returns. And I'm just curious sort of the expansion there, is that primarily going to be organically? Are you looking for adding more brands? Or do you see opportunities of doing it private label-wise? Acquisitions? Yes.

I think I can take the first part in terms of the time line and that is plus 10 years. and then you can more or less put in your -- your own assumption. So it's an endgame, so to say, for the business that we see this will be the optimal mix, the way things look today. The rest, I will let Mads and Peter deal with.

Yes. But as you saw, we are on the way to the 50-50, which I think is not far away because I think we have good traction in the other categories. And I think in regards to building more revenue, it is simply doing more of what we all really do really well in -- team. So it's about not buying 500, but 700. And I think that applies to the things that we see in the numbers. So back to some of the earlier slides saying, okay, if you have customers continuously buy into more categories, they will also buy more within the individual departments. So you get that exponential buying behavior. And I think they look somewhat similar like the old ones that are buying. So it's bigger volume, bigger commitments that will grow the business. So I think on the brand level, it will be obviously adding. Someone will fail, someone will come in. So I think that's the -- that we've been through, exchanging brands over the time. And we will do so also in the newer categories.

And maybe just a final one on the topic, given the discussion on AOVs. Could you say anything if you are at EUR 80 to EUR 85 today on the group, what are you at -- within Beauty or in Home interior, for example?

On the AOVs?

Yes, average order values.

We see -- if you take the Beauty, for instance, we see an extremely good traction. It's back to the item price, it's relatively low. So maybe around EUR 200. The other items are probably closer to EUR 600. The combination of Beauty with other orders, which is around the 75% lifted actually to a quite high level. So we live in a blended value of around EUR 500, EUR 600 on the Beauty orders within the women's fashion. So we are actually in a good spot of not getting single orders with low Beauty items, which I think is key to our business. So blending them, and it's low return. The highest return, wedding dresses, we don't have many, but sky high. We don't want to sell that mess. On the other hand, women in general is fairly okay time, especially for existing good customers that know us, they get something home to try and there's a whole idea about the Boozt, making that easy. Combining some beauty stuff into that, you get a return rate that is really nice in the mid-20s instead of plus 40s. So I think Beauty with fashion, this is extremely strong.

We will close it down with this. Thanks a lot to Mads and Peter. We will take a 15 minutes break. So, yes. Please look at your watch and be back in around 12 or 13 minutes. So you are ready to go. [Break]

I'm Jesper. I'm CTO, Head of the Computers, as my kids say. When Hermann convinced me to join Boozt 12.5 years ago, leaving the consultancy world. I was tired of working with other people's problems, other people's technologies and never seeing really how it went out. And I wanted to try to set strategy and try to execute it, and again, see how the results would be. And I think it's fair to say that I've certainly met those ambitions here in Boozt over those years. I'm representing platform here, the tech guide engineer in the room. And I think it's a very nice to meet you all. It's nice to get this airtime. I think it's rare that I do that. I think it's super important as well. We are a digital native company. We were born with the computers in the hand. We've never been through a digital transformation because we've always been here. So technology has always been a key part of how we do and what we do here. And you will hear that today. I'll try to give you a historic view of our technology development and where we are today, but also, of course, some indications of the opportunities that we have on going forward. And I hope you will also see that yet this being a technical talk, you will also see how close we are with the business. You already heard my name and my team mentioned several times from Peter and Mads because that's one of the key things is that we really try to be close together. We are not the IT team in the basement that you order some project from and then you come back 6 months later and you get something else and you are upset about it. We really, really try to be close together and that's a key thing, and that's how we've been thinking all along. All right. Let's get it started. I think I want to start with a technology. With an overview of our team, we are 190 people. All in all, mainly developers, almost all of them. We are spread on 5 locations physically. We are here in Malmo with the biggest team. And then we are in Copenhagen, where we mainly do app development, and then we are in Aarhus in Denmark where we do data science mainly. And then we are in Vilnius in Lithuania with a quite big team, more than 50 people, doing a lot of webshop-related work, also app development a lot. They've been with us since the beginning. And then we have a team in Poznan that works with some of our business systems as well. We have 15 people in Poznan, have been there for 5 years. So that's how we spread, we are decentralized, and that's a strategic decision not to be 1 big team in 1 location but spread so we can spread the risks of hirings and bottlenecks and so on and also try to feel small in the teams. We are split in 6 branches and branches are kind of divisions, but it's more dynamic. It's something that can merge or split and develop over time, and it does. We are now in 6 branches. As I said, we are web, we are app, we are logistics. We are transactional, so basically the core processes. And then we are insights, it's a lot about data. And then we have engineering team underneath it. That is a key thing for our future development and scalability. And then all in all, in those 6 branches, we have split in 30 small teams, small cross-functional teams. That's also a key thing. I'll come back to it a bit later. We like to work in small teams in general, together with the business. Right. When we launched Boozt platform, some 12 years ago, we basically sat down with 2 main purposes for why we should be there. You have it on the right here. The main 1 is that to offer a web shop -- to offer a shopping experience for our customers. It has to be easy to use. It has to be frictionless. It has to be basically no -- there shouldn't be anything to think about, just go through it. It's a webshop. It's a checkout. It's the delivery process, it's returns, it's payments, it's everything around it. It should basically just be easy. That was 1 thing. And the second thing was to build tools for our colleagues, for the business people so that they can operate the webshop, do everything that they should do. You heard a lot about it, as I mentioned, from Mads and Pete already. So the tools we take responsibility for, further on, it has also extended to the brands, to the collaboration we have with the brands. We also developed tools for them to be able to help us with the processes around the business we run. We [ early did ] our own slogan and our own logo even too. And we have the slogan power to the people and the people here are the consumers, it's the customers, it's the colleagues, it's the partners. So power to the people has been following us all along. So we are not the bottlenecks, but we give them the tools that they can operate the business with. We take control of all core processes in Boozt. And control is a key thing you'll hear about it again later and later. We hate to be dependent on others. So we really, really need to be in control of things we do. We take ownership. We control the performance, the stability, the priorities and so on, it doesn't mean we do everything, but we try to do the right things. We work, as I mentioned, in small autonomous teams that are fairly responsible for their own priorities and how they collaborate and how they meet with all the business people. And when we do that, we also have the right to ask why? So when someone comes to the project, I would like to have this done. We always reserve the right to say, why should we do that? It's not to be annoying. Sometimes we are, but it's to be sure we understand it, needs to be sure we do the right thing and we can help with that. And then we have a factor 10 mentality. So when we run into bottlenecks, we try to experience -- observe them really, really early, so we can remove them and that we can scale. So Factor 10 basically means that if we have the situation we have now multiplied by 10, can we handle that? And if you consider orders or finance the flow and so on, we've had that situation several times where we then doubled what's happened here. So it's not just an unrealistic discussion to have. And then we are working on a shared technology stack across the system. So it actually means that a lot of the different systems that we built are built on the same technologies. So we can move people around, we can move systems around. We can reuse some modules across as well. So it's a way of growing. It's a way of being efficient. And we have tried to move a full team to another branch and do something completely else for 6 months and then moving back again because we had a bottleneck we needed to fix. All right. Quickly, a historic overview of what has happened on platform over time. All the way back before we launched Boozt.com, we were completely outsourcing company. You know the story probably that the brands would outsource the e-commerce to us and then we would outsource everything we did to someone else. They would develop the systems, they would run their priorities. They would run the projects and so on. They even ran the warehouse first. And it was very monolithic. So it wasn't really in our control. So when I joined them in '10, we decided to take ownership. That was the next phase that we came to. So no outsourcing, no consultants. We build our own -- established our own warehouse. We started building our platform, the power to the people concept. We launched Boozt.com. Later, we launched Booztlet as well. We changed our strategy around to mono brand, so we only did very few very big ones where we could make a change and not having to work with hundreds of small businesses as well. And then we started the cloud journey. So that was the establishment of the -- of where we are today that we did in those years. Then we came into the next phase where we expanded it. We have kind of proven the way to go. We went into a more service-focused way of running it, mobile first, later app first, warehouse automation. We established a data warehouse, where we get most of the data that we do the decision based on. We went into this decentralized way of working together in the small teams on several occasions. And then we started up this engineering focus that's very much again a matter of scaling the business to be sure that we are well ahead, usually a year ahead of business decisions in engineering phases. And then over the last few years, we have moved to the next phase again where we have become more offensive. I would say, the department store strategy. So everything we do now, we have proven, [ we've been most of our competitors. ] We think we are really, really good, really efficient. And now it's about building the club, implementing that concept. It's about the department store, more categories, differentiating how we work it. We are moving a little bit away from having an engineering mindset to having a product-focused mindset. So the question, why do we do this? Who's the owner? How do we continue working with this? Is super important when you start differentiating what we do more and more. And then also, as Peter and Mads mentioned, we are going into some of these new areas with the revenue-generating services that has appeared for us, and I'll come back to that. Yes. This is more an evolutional graph of where we have ended up or where we are now, we would say, in the early days, if you start from the top, we have NetSuite. It was the main system. It was actually in the beginning of Boozt very early days, meant to be the only system we would use. It could do everything we needed. It was cloud-based that could scale. There's no need to do anything else. That was the thought behind Boozt in the early days. Obviously, that didn't turn out well. So then it was split out into 2. So we had the [ ERP part ] in NetSuite, and then we did a webshop. And all this was still when it was outsourced. Then we took the ownership ourselves and started building our own platform and own technologies. And then, we continued this philosophy of whenever things become a bottleneck, we split it out into multiple systems. So we added a warehouse management system that we built ourselves, then we added a content management system as well. And then again, later on, that became a bottleneck, so we added a customer service system. We added an EDI integration framework, so we could integrate automatically with all our partners. We also replaced the ERP system with our own finance system because that was basically all that we needed that we could scale up in our own control. Then, we added apps later on. We added a partner portal, and we added media services that is running the BMP and that has continued since then. So we're actually right now in a stage where we have about 40 different systems and services that we have built ourselves. And again, from the philosophy that when something becomes a bottleneck, we can split it out and then we can do something that is more optimal for scaling forward. So it's not 40 systems that you can log into. It's 40 -- maybe we have 15 systems that you can actually log into. But it's 40 services that we offer that we have split out. We have an e-mail service for instance that we send e-mails to our customers and that's used from different other systems, et cetera. So that's the philosophy that we have gone through. And we are not done. We'll probably never be done because it's a continued journey to keep on going down this road. But it has really given us power and has taken us to where we are today. Yes. Cybersecurity is one of the questions that you will ask me anyway, so we took it off here. Is cybersecurity a problem for us? Yes and no? We are hit approximately 15x today by cyber attacks of different scale. We have taken some initiatives very early in our technology choice. We're working with Cloudflare that is an -- it's a global web traffic distribution service, and they help us to protect against some of these cyber attacks. A lot of them, they cover about 20% of all Internet traffic, and they can turn up and down service and direct it to another direction if something is wrong with it. We're using Google Cloud. We've done that for the last 5 years. So all our applications are hosted by Google Cloud, and that we can scale up and down. So on an all day, we have maybe 3 or 4 web servers running. When we run Black Friday, I think we have 45 servers running simultaneously. So we can scale up and down, and we're never really, really in the risk of losing all our data because there is redundancy in all this. And then we're using partners, Rackspace and Hackerone. Hackerone is a hacking service that's actually hacking our sites and finding potential bottlenecks that they release and then we reward them for that service. So most of the choices we have done all along is something we are -- that keeps us sleeping well at night, and we don't have any single-point-of failure. We don't have any OnMetals of our own service, really, that is in the risk of being taken over by hacker services and so on. And we are working a lot internally as well. IT auditing, we are working with security training for our people and hacker security training for developers and so on and so on. So we are trying to be on top of this and we have never had any severe attacks that has taken us down. Yes. This was mentioned already by both Mads and Peter. The department store journey that we are on. We are coming from being a women's dress shop only to becoming a full department store that should be able to service all different kinds of categories and also different kinds of needs. There are a lot of different initiatives around that and some of them are listed here that we're moving from the way we are working on categories into being much more category dependent on the different journeys that we like to take through. We are working together with the brands to get more self-service from them, so they get part of the challenge for selling their own items but also an opportunity for selling more. So we are sharing that successfully with them. We're going towards a more context-based recommendation system. So if you go into the Beauty category, for instance, and you bought something a month ago. There's a big chance you want that 1 item again. If you go into a dress category and you bought a dress a month ago, there's a very low risk you want to buy that dress again. So that's just a very well understandable example that we will go through different ways of serving the customers in these situations. Shop alignment. This is very much aligning between Boozt and Booztlet. It's offering the same feature, same functionality across the shelves we have, also across the different devices we have. So being desktop, being mobile app, being mobile web, basically to be able to offer a device-agnostic service across that, also an area we're going into navigation, search and filters, all that should be different from depending on where you are in the department store. It's rational universe, [ saying, ] we are working a lot with being much more inspirational towards our customers in the way that they should read and learn about it. All that is also very, very department store dependent. Logistics, there was a question about it, what will differ there? Lots of stuff on shipping. I think Sven will come back to the way we store the odd size items, so small items and the way we pack it, will it be sent in multiple packages, will it send by multiple distributors maybe even, maybe from 2 different locations even and how you handle all that, including all the return process as well. And then not the least, the next generation of customer communication. Peter mentioned the club. It's a huge investment from us also technically, offering which text messages in the ad format in the inbox, the wallet for vouchers and discounts, et cetera. And all that is stuff we are building ourselves in platform. Yes. One question that I've had many times is that why can't we just sell our technology and offer our systems to someone else. And that is very hard to do because we normally say that we have the very best system in the whole world for ourselves, but not necessarily for others. So if we should start doing the systems and offer them to others, we would have to work on their functionality as well. We would have to offer 24/7 support to someone else. We will have to offer a release cycle that is in their interest and not necessarily in ours. So it's always been a matter of purchase that we would rather spend our energy on the internal development that we have done. What has happened instead is that we have seen the opportunity to build on top of what we already have. So BMP, that is about working on top of all the media, display that we have -- our 3 million customers or the PDI is about working with data and understanding data and offering that as an added service to our consumers. Pushpay is about lifting us up to a level where we can offer something that others can as well. And when we can do it for ourselves, we can also take that in office to others. Liveshopper is something, it makes a lot of sense for ourselves. It might be spun off to something that we can offer to others as well. So that we have these added services that we have seen on top of it. So it's not about copying our platform or taking 1 of our 40 different systems and selling that off by itself, but it's about building new services on top of what we already do. And there is a good example here. It's BMP and it's from a technical perspective that we're offering a dashboard that basically tells the brands, everything about a specific campaign that has been running. We're offering a planning tool for the internal uses of how to book these different campaigns and how to -- how to negotiate with the brands when we sell it. It's something we have built. The whole inspirational part where we include information from these brands and from the PMP campaigns in a different inspirational articles we do. We have Liveshopper as I mentioned that we're running as part of BMP. We have product placements where the brands can actually buy placements of products, can be in an e-mail, can be on site, can be on the front page, can be on a Page 2 page, et cetera. And then you sell banners as well. Banners, again in e-mails on content, all that -- and those are some examples of components we technically have built that they can go and choose and we can use in the planning system. And then we can include it in the campaigns, and then we can display afterwards measure. We have the bank as well. It's a BMP Bank that is basically a matter of -- we invoice the brands with the BMP campaigns cost? And then we draw from the bank as we go along through a year, so they can go and see how much do I have left that I can spend on different campaigns, and then we can use that information as we go along. So it's continuous instead of us sending invoices all the time, we invoice and then we draw the money from the bank as we go along. All technical components that makes BMP a possible to go live and on top of the services that we already offer. This is just a zoom in on the 1 dashboard that I showed on the previous page as well. Information about impressions, how many times have the campaign being seen by the consumers? What is the value of the campaign? How much sales did it generate? What is the return of investment calculated on a specific formula? Was the conversion rate for the campaign? What -- how much was the newsletter seen and clicked on and converting and so on and again from all the campaigns. There is a long list here of additional information that we display. It's all back to data that we have and that we can follow on and that we can show for the brands. And there's no way that they will be able to see that. This is part of a partner portal, by the way. So the brands log into the interface, you see a lot of different modules on the left side. So this is what the brands see. Yes. This is the last slide. And it's basically just to get you back on track from all the different screenshots that you just saw that -- building a path from here has been -- about being in control of the business. And again, I hope you get a feeling of this is something we do very, very close with the business people being everybody in the company, also to some degree to the external partners that we have. And then it's about being ahead, it's about scalability to be sure that we can continue this development going forward, not running into bottlenecks and being the limiting factor. I don't think we have ever been at except we need more people. That's it.

Hello, everybody. My name is Sven. As [indiscernible] introduced, I'm from Germany, just joined Boozt last year and now responsible for all topics around supply chain, especially logistics. And today, I would like to walk you through our logistics highlights. Starting off with our purpose. Logistics for us is the internal service provider that delivers the capacity and the capabilities that we need to cater our leading Nordic Department Store vision. We operate on 88,000 square meters warehouse space located close to Ängelholm, a bit north of Helsingborg right in the center of our core markets where we have close to our customers and where we can basically reach everybody within 24 hours. We handle shipping and returns locally, which also gives us faster lead times, it gives us lower costs and, of course, lower emissions. We have a customized and scalable ASRS, an automated storage and retrieval system, somebody already mentioned it, AutoStore, that is catered to our needs, and we have roughly 1.2 million bins that we have in this AutoStore and a bit more than 1,200 robots running the operations there. As Jesper mentioned, we have our own in-house developed WMS giving us a high degree of flexibility. We said it before, the fulfillment and distribution costs are at a very competitive level. You can see here that we are at the right point. You see that corrected value, SEK 121. We Were quite ambitious on the depreciation time with our technology because at that point, we didn't really have any comparable values, and we thought a system that's running 24/7 basically when we don't work the system prepares everything. We didn't know how long it will take until we need to replace the first things. But we now realized after 5 years and that we're quite good on path, and we can extend that depreciation period. And depending on the components of the system, we extended this to 10 to 15 years. And that gives us an amazing head start, I would say, to the future being positioned quite well. But of course, there are 2 things that we need to focus on to further improve, further optimize. One thing is the productivity, the other the capacity. Jumping into productivity. First, what are the key projects that we currently work on? Packaging materials, sounds quite simple, but has a huge impact on our cost, especially since raw material prices are increasing ever. And sawdust paper with our new commodity group, product portfolio mixture we see that we also need more of different types of packaging and being on top of this, making sure we have the right materials to protect the goods, but also be lean and efficient. It's key. So this is something that is strongly in focus for this half year to improve. Leverage data science create a glass FC from the [ glass citizen ] -- We need to know everything that happens in our warehouse. We need to have scans everywhere. And we're already at a good level, but I think we can always do more to understand where do we have waste, where do we have buffers, where can we be much better than we are now. And this is something we professionalize heavily in and want to identify those opportunities. Next level lean management, very basic, but it is -- it requires a lot of discipline to really set it up well and to keep it up and running. And if you run a company that has multiple warehouses, you can always see that the warehouse that is very, very disciplined on that end, actually always has the better performance, that is something we have kicked off, and we are already at a good level, but we want to take it to a much higher level and be an example in that end. And consolidation, quite technical topic. But as you may know, we have the biggest AutoStore installation in the world. And we have 3 big cubes, 2 of them in 1 building, the third 1 in another building. And with our growing product portfolio, we do not have every article in every cube. That means we need to be able to efficiently connect those cubes in order to consolidate the orders also with an increasing items per order value that will also increase those efforts, and we want to be a lot more lean and automated on that end. There is 1 slight -- yes. Capacity in the current fulfillment facility is a big topic. We want to be able to grow as long as possible in the existing facilities, leveraging economies of scale. We currently have a capacity of roughly SEK 9 billion to SEK 10 billion in net revenue, as I said, roughly 10 million to 30 million items. We want to increase the items per bin in AutoStore, how do we become more efficient in using our main technology. We want to expand and optimize the storage setup that we have outside the AutoStore, our shelving areas and other areas that we process the goods in. And we want to improve the flow of goods, be really smart about what we put where and when do we get what, which items at what pace? The goal is that we do investments in the next 3 years to get us to SEK 10 billion to SEK 11 billion in net revenue capacity. We will spend roughly SEK 100 million per year, depending a bit on when do will pull which option and implement it, but we stick in line with the previous budget planning there. Being a bit more detailed on these topics. Increased items per bin in AutoStore, how do we want to get there? First of all, we want to adjust our store strategy, knowing exactly what is the goods that we need to put in the AutoStore. It was also mentioned previously in a question, how do you deal with bigger goods? What is the right size? Where should we stop putting things into the AutoStore and what should go somewhere else? And of course, adapt the configuration of our AutoStore with the changing product before you also need to be on top of it and know how should the AutoStore be configured, how should the bins be configured. So we cater best to the needs and have the highest degree of efficiency. Extend and optimize storage for refill and large items. We do a lot on that and understanding, okay, how do we go from pallet shells, for example, to VNA, very narrow aisle, very small shells with very narrow aisles that we can basically increase our storage capacity on that end and also move from pallets to collis to cater to our needs. And then of course, we also look into the layout. Improved flow of goods. I already mentioned it, reduced buffer spaces, reuse those areas for more storage capacity and be a lot more efficient, and we need to maintain a high degree of flexibility. Since we are growing and again, as mentioned, we are not at the end yet with regards to our portfolio. So we need to be able to adapt to new needs. When Mads and his teams identify an opportunity, we need to be able to grab it. We need to be able to grab it quick. So that's why we're always looking into these topics and not get ourselves to bound to one way of doing things. The next big thing on the horizon is our BFC 2.0, our next warehouse. We started already last year planning it. We have finished the evaluation phase. So basically, we have done a very thorough data analysis on historic data and current data. We have done future workshops with our most important stakeholders to understand where we're heading in the next couple of years because it's basically a project that will go live in 2 to 3 years from now, and we need to operate it for another 8 to 10 years. So we need to think way ahead, which is difficult, especially since we're a very agile company, but we roughly know where we're heading. So that's good. And now we're in the conceptual phase, we need to set up the processes and understand what are the volumes, the items that we need to process through this warehouse. And then the next thing that we will do is so-called guided engineering, where we will sit down with automation technology providers. We will identify the best ones for our needs. We will discuss fully fledged concepts, fully integrated concepts and then choose the right company, and then we will basically implement and start construction. The building will be designed around this. So that's also a very nice part of that. We believe in the campus strategy, we do not want to spread our warehouse across the country or across countries. We believe that we are a lot fast and a lot more efficient when we are in the core of where we are. The Nordic department store. We need to expand our capabilities, bigger items, how do we deal with them, how do we send them well protected and fast and good to our customers at a low price. The modular expansion really important for us. Of course, we know that in the future, we will grow, but we will not build 1 building that already is able to cater our needs in 6, 7 years. So we think about modular growth we know, okay, we will build modular 1 or module 1. Then in the next step, when we see, okay, we grow faster, we grow slow, we can prepone, postpone the next phase. But at the end when we have built our 3 or 4 modules, we will know it's a fully integrated concept. It's highly efficient and all works with each other. And that's the really important piece that we look into. It gives us a high degree of flexibility and of course, a high degree of efficiency because we do not spend all the money right in the beginning. And then tailormade intra-logistics concept. That's the beauty of it. Also having our own WMS, we know that we can build the perfect process, the perfect intralogistics for Boozt. It's not for everybody, for us it's the perfect thing, and we can build from inside out. So at the core of everything is our processes. If you grow into a brownfield like we did in the past, then, of course, you're limited by the premises that you have, you're limited by the building, ceiling height, floor loads and so on. In this case, we can build the perfect building for our technologies now processes. Yes. So quickly summarizing the key takeaways. We have competitive logistics services with cost per order among the best in industry, clear road map to further improve our operational excellence and keep that head start that we have here. We have to require capacity until the end of 2025, secured well into '26. And we're well on track with our capacities beyond '26 with the new warehouse. Thank you.

Thank you very much, Sven.

Very well.

We'll bring -- yes, Sven to the stage also, and I promise to step up here. So again, same procedure. And we start with Niklas.

Yes, Niklas Ekman, Carnegie again. Can I ask on the last topic here, you talked about BFC 2.0. We're talking about an additional warehouse somewhere in home region but not adjacent to the current warehouse. Is that correct?

Correct.

How would you manage consolidation as you talked about here?

Yes. So of course, by being smart within the item allocation, we can reduce these consolidation efforts and then depending on our strategy, how we move over. So there will be an overlapping time, but then also, I mean, at that point when we have the second warehouse, what do we put where? We also know exactly -- we also now have a warehouse at Helsingborg dealing with the bigger items that are usually sent by themselves, we split these orders. So there is no consolidation efforts needed and by being smart with the product categories and knowing what do we put where, so we can heavily reduce this effort. And then with the short distance, it will only take an hour or 2 but not as in comparable environment, it takes -- it adds a day to the lead time because you have to drive from 1 country to another.

Okay. But we're talking about an AutoStore warehouse or...

That is open. So we love the technology. We think it's great. But of course, every technology has its sweet spot. And depending on where we are and where we will be in the future, we need to reevaluate the options that we have, a lot of competitors came up in the last years. And I think there are some super interesting systems out there, and we need to thoroughly look into it, and we will do so. So we're really open with the technology, and it will not be that 1 technology, probably will be a combination of different technologies that we aim for. And then we look who provides the best efficiency and value for money actually.

Can I also ask about the slide you showed about the fulfillment costs, the SEK 121. What exactly is included in that? I assume that is the -- that would be the warehouse, the shipping, also the returns is included in that.

Correct.

Benjamin Wahlstedt, ABG again. So you added about 70% on both bins and robots this year. And you communicated an increased capacity of roughly 40%. What are the main reasons for the diminishing returns here, please?

Say the last part again, please?

Diminishing returns. You add 70% in bins and robots, capacity is up 40% according to the annual report. So what is the reason for the diminishing returns?

For diminishing, I don't understand.

I think if you look at these numbers, I think we have always guided towards the SEK 9 billion to the SEK 10 billion in terms of items and not so much in terms of the number of bins or the number of robots. But I think if we look at it, we have added around 500,000 bins this year and some of them into this year also. So not everything was in the AutoStore at that point in time. So it is -- some of it has to do with item composition, of course, that there can be some diminishing returns on that, but the difference is not that great. But at the end of the day, it will add up to SEK 10 billion to SEK 11 billion.

And if you could perhaps highlight some key items in the pipeline for the platform and the app, respectively, perhaps not including the club that we've talked about.

Certainly, we are working a lot with the supply chain to make that even more smooth, automating a bigger part of the communication we do, especially around invoice. That's 1 thing. What -- the club has honestly taking a lot of resources over the last, say, half year, and we will continue to do so as well going forward. But overall, this whole department store switch that we are in the process of consists of hundreds of small projects that are lined up, and it's a step-by-step that we chew on this endorsements. So big, big, big projects. I think it's pretty much -- there is -- we're doing some internal refactoring with [ an PIM ] system that we will reach probably towards the end of the year, so a product information management system, which is a little bit decentralized now, but can switch between different systems. So we're going towards centralizing that as well. That is a big project, but it's not -- is not prioritized where it has a fixed deadline. So a lot of the refactoring is going on constantly to be sure we are 1 year ahead. That's basically my main concern.

Could you perhaps briefly discuss how you handle changing regulations around Internet user privacy, cookie regulations and things like that, okay?

We have a legal team in Boozt consisting of a few people that are very, very -- with the finger on the pulse of what's going on there in the different markets that we are in, and they are very close to some of the people in my team. So it's actually getting back to the business developer collaboration that happens on a day-to-day level. It's not a top-down priority. It doesn't have to be because basically, those people know that this is important, and the people know what has to be done on the other side. So it's getting down to a communication between the developers and the business people. That just happens to know the regulations there.

Mike Benedict from . Berenberg. Just 1 from me, please. On the tech side of things, I wondered if you could give a bit of color around what the key things you do better than your peers are, say, Zalando and ASOS. Where do you think you're lagging slightly versus those peers? Or how do you approach it differently just to give a bit of context.

We really trust the people. I know it sounds like a cliche, but we do -- we hate overhead. So we really, really try to put the right people in the same room and basically just fix it. And that's a balance we've had all along that we have done very, very few things that are not being used. That, to me, is a high-quality factor that the things we do are the right ones. We have very few big priority meetings where too many people sit around the table and do reports on, we should do this in 6 months and this in 12 months and so on because it's never the actual stage when you read those 6 months or 12 months later. So it's -- my job is to be sure that we do the -- the big projects were needed because they will not come out of the day-to-day collaboration between the businesses. And there, you get the 100 small tickets. And then from time to time, we say, okay, we need to be aware of this. We need to build a finance system. But otherwise, we will run into a bottleneck here and there and there we set up a new team, a new structure, something like that. I don't know if that answers it. But we are very much on the pulse of what needs to be done, and we do very little unneeded work, very little overhead. We have product owners, product managers but we don't have any project managers that is just moving tickets and papers. That's the philosophy like.

All right. Another question from me then. Daniel from Danske. It is -- then maybe a similar question actually, given your background, you came from Zalando, I think you went from -- when you came to Zalando, you went from Amazon. Correct me if I'm wrong. What are you seeing sort of coming to Boozt? Where is sort of Boozt ahead of Zalando and where did they need to catch up? What has been your main reflections?

I think it's quite difficult to compare because we're at different stages, right? And I think what Boozt does really well is as Jesper already mentioned, it's a very lean setup and a very fast-moving setup. Of course, if you become a big corporate, you're bound to a lot more complexity, and that slows you down. And that is something that we do not have. We move at a very, very high speed. And decisions are taken really fast, and I think that gives us quite a head start.

And you don't see any risk that you're building in complexity, you would sort of what you're doing with the company going forward? You're sort of quite confident that you're not going to be ending up in that situation.

We're very conscious about this. And we try to avoid it at any cost. Of course, there will be added complexity when you grow, it's unavoidable. But you can keep it at a fairly low level, and that's what we try to do every day, and we are very, very conscious about it.

I think we have 1 here from the online audience also and is to use it in terms of the BFC 2.0. Are there any considerations at this point in time in terms of size now that you talked about a modular expansion?

Well, not really because it depends a lot on how high can we build, what is the technology that we will put in. At the end, we will see what also the final stage of capacity will be in with regards to items. So will we go for 50 million, 60 million items, we do not know yet. That's the phase that we're currently in to evaluate this exactly, and then we will look at the technologies and the technologies basically dictate us what kind of a building will we need and what is the size of this building. It could be 100,000 square meters. It could be 200,000 square meters. We definitely look out for plots, and we have some that give us that freedom of choice that we grow into.

Very good. Any last questions for Jesper or for Sven, then we are closing in. We are actually more or less back on time, which is really great. So we will take a lunch break now, and we will be back at 12:20 where we will say hello to our lovely CFO, Sandra. Thank you.

Okay. So everyone is still awake if you don't say anything. Okay. Well, nice to see in person and especially a few of the voices that we hear on the earnings call to actually see you when I expect a lot of questions laid up. Very nice. So it's time to go through the financial part of this presentation. But before we're actually going to do a little dive into our sustainability performance. Because last week, we released our annual report, and most of you know us very well, so you would recognize most of the things that you see in the report. However, we spent quite a lot of time in the sustainability report, increasing the number of KPIs and data, and describing methodology. And there is a quite clear reason for that. So I will just give you a few highlights from our report. So one of the most famous initiatives we made is the fair use policy. And this policy has been good for so many reasons, first of all, and something that I'm very happy about is obviously that we save quite a lot of money. But what we have since we introduced its policy in late 2019, we have paused around 40,000 customers. That equals to around 1.6% of our customer base. So it's a fairly small number. Still, if they would all be allowed to shop on our site, last year, they would have been -- their part of the returns would be 25% of all the returns made. That's quite a lot. And that is due to them returning around 95% of everything that they buy. So by pausing these customers, and of course, this becomes a little theoretical because we didn't allow them to buy. But we just want to give you an overview of what it actually means in terms of -- both in terms of our business but also in terms of save CO2. We actually had 800,000 parcels not being sent out of the warehouse and then coming back as returns. That equals to around 791 tonnes of CO2 emissions. Just as previous years, we also reported on the CO2 intensity per parcel. If we look at the Nordic region, and here, we include Sweden, Norway, Denmark and Finland, the CO2 intensity is 0.29 kilos per parcel. It's kind of hard to find a good and relevant measure to compare or do a benchmark. We -- there have been some studies out in Europe -- Central Europe and Germany. But it's not you cannot take it for granted that is totally comparable but the average is around 1 kilo or 1.5 kilo. That's the indication that we have. So we have fair assumptions to believe that this is fairly low than our emissions. What we have been focusing during the last year is to make sure that we can measure our climate impact. And that is a lot related to the GHG emissions and especially in Scope 3. Since we now can report on more than 67% of our GHG emissions in Scope 3, we are eligible to set science-based targets, and that's what we aim to do this year by having -- we have already set the target but we will have them verified. That verification would help us to work in a very structured way going forward from -- in '24 and going forward and how to reduce those emissions. So if we dive into the emissions normally and the way we approach this is first looking inside and then outside. So looking at the Scope 1, which is our -- which is our direct emissions, these are fairly low. It is due to the way we operate that we are in this region, the way we run our business, very efficiently. Scope 2 includes the energy that we buy for our warehouse for all our offices. And since it's renewable. And as you can see in this chart, it's almost nothing out of the total emission. That means that Scope 3 is the emission that are the most relevant to take a look at going forward. This is also the hardest part. There are 15 categories of Scope 3 emissions. We have assessed that 9 of these are relevant. For last year, we reported on 4 of them. And this year, we report on all 9, but not everything in it but more than 67%. And this has -- this has been a major work but we think we made a huge process -- progress this year. But in order to take it further, we need to collaborate with others, and we have joined the SAC and some of our other big European peers to try and get to our brand partners because there's a lot of data that we need from them in terms of -- both in terms of environmental impact but also on social impact down to product level. And this takes a lot of work. It will take -- it's just a journey that we started but we -- since it's 99.8% of our -- our total emissions come from Scope 3. This is something that we need to work on in the coming years and probably a few more years on that. So there's a lot of new things in our sustainability report. Last year, we reported around 40 KPIs. This year, we are in the level of 170. With the coming regulations that are -- that are -- that we need to report on from fiscal year '24. We need to consider more than 1,000 KPIs, and then where 400 are mandatory to report on. So it will take quite a lot of work to be transparent. But our overall mission in relation to this audience is, of course, to give you the best information we have, to structure it in a way that will make it easy for you to assess our sustainability performance. Cool. So as [ M&M ] would say, let's get down to business. So today, I'm going to start by looking a little back on the promises that we made at the time of the IPO and then what you can expect from us in the future. And then finally, we'll take a look at our capital allocation priorities. So when we did the IPO in 2017, we set a midterm guidance and the midterm was 3 to 5 years. In terms of growth, we said that we were going to grow 25% to 30%. In terms of EBIT, we said that we expect an adjusted EBIT margin that would exceed 6% at the end of the period. We also said that we assume that the increases in the profitability will come on a year-by-year basis due to scale efficiencies. In terms of cash or capital allocation, we said we adopted this rather standardized policy and dividends that when we didn't have any more investments in growth to consider, we would consider dividends. But we also made it clear that during midterm, and in these 3 to 5 years, we didn't expect to do any dividends. Then what happened? In 2020, when the market went turbulent, both us and we think also your community experience that we didn't really know what to expect. So in terms of growth, we became a little less specific on the growth. We said that, well, we will outgrow the Nordic market significantly. In terms of profitability, we assume that at this stage, during this time and at this level of maturity, a profitability margin between 5% and [indiscernible] would be reasonable. And by saying that, we also said that it wouldn't probably come like this but go a little up and down depending on how the market was. So if we follow up on how it actually went, we can see that the CAGR of net revenue growth have been 30% if we go back from '17 up until 2022. So that's quite on spot and something we're very proud of. It's -- and also considering that we were -- we have been significantly outgrowing the Nordic markets. Looking at the EBIT margin, it's been a little more of a bumpy ride, you can say, and the profitability didn't come gradually in a very smooth pace but it's been up and down. So if we look at the average adjusted EBIT margin for the full period 2017 to 2022, it was 4.1%. If you look at the accumulated adjusted EBIT over the same period, it was 4.5%. If we take the latter part of the time line 2020 to 2022, we delivered an average adjusted EBIT margin of 5.6% and accumulated 5.4%. So we think that we can conclude that we've been quite on spot with what we have promised to the market and this is something that we're very proud of in our organization. But where does this put us in relation to others. And we have, throughout the day, shown a few other examples hinting that we believe that we are in the very good spot. I think this speaks for itself. If you look at the vertical axis, you see the growth. And if you look at horizontal axis, you see the EBIT margin. And it's accumulated over the period '17 to 2022. So what conclusions can you make from this? Well, we believe that there are a few where we are 1 of those that have been investing profitable growth. Is there something alike with these players, well, most of us have been around for quite some time. If you look at the other end, where the profitability is lacking, those are maybe slightly newer players. And I think it reflects both the environment that's been on the capital market to grow at all cost. But also it shows that it's quite hard to enter this market. There are quite a lot of entry barriers in the Nordic markets in our field. We have also included some of the more classical department stores and that's because we believe that we take a lot of consumers from them, and they come onto our platform instead. But yes, this is a nice for you if you work at Boozt. So what can you expect from us going forward? Well, we have guided for this year. As you know, game is not to talk about the near future here. But given how the market looks, we have made a wider range both in terms of growth, but also in terms of profitability. And we think it goes hand-in-hand. So if we end up in the higher end of the growth corridor, the EBIT will fall on vice versa. The share of fixed costs impacts the profitability here. We also expect that we will be free cash flow positive due to the investments that we made. What we won't do is set a new midterm guidance, but we will rather talk about the long-term opportunity for -- and the reason for that is, one, because it's too messy. But it's also that we've -- this is something that we learned over the last couple of years. It's very hard to guide because if you want it in the near term, you want it quite specific, but that's -- as the market has been developing, that's been very, very hard. So we want to talk about our long-term opportunities. But we will continue to guide on a year-by-year basis for your sake. So the ambition is to reach a market share of around 10%, and that includes both the online and the off-line. And we will soon go into how that will happen. But we will -- in order to do that, we obviously need to continue to grow significantly faster than the Nordic market in general. In terms of profitability, we believe that we have a very good model and that we can reach an adjusted EBIT margin exceeding 10%. And we are the most profitable among our peers, and that's what we will continue to do. And then we think it's time to start to discuss how we can return excess cash to shareholders. So here, you probably have the most busy slide of today, but we will go through it. So if we start with our core business being Boozt, the Nordic department store and Booztlet, our Nordic designer outlet we have a quite clear value proposition that my colleagues have been describing and talking about in more detail than we usually do today. Currently, we assess that our market share is around 1% to 2% if we look at the whole market, both online and off-line. If we only look at the online market, we assess our market share to be around 5% to 6%. So there's quite a lot of room to grow. We are the biggest e-commerce player in the Nordic, and we still only have 1% to 2% of the market here. So we believe that there's so much more to do. We don't have any ambition of changing the revenue model. It is own buy and a lot of the things that Mads and Peter talked about, that's the way we are in control. And I think control is one of our key messages and something that we talk a lot about internally. We want to be in control, and we are that by having as a wholesaler or own buy model. So if we start to look at the other revenue streams, we have Boozt media partnership and Boozt Data Intelligence. We see this as one area. But since BDI is rather new, we separated them here. Currently, Boozt media partnership is less than 3% of our group net revenue. And BDI, we just launched, but in a very good manner. We believe that long term, this could constitute -- this business area could constitute 4% to 5% of the group's revenue. And it's not tomorrow, it's not today, but we think we've started building Boozt media partnership a few years ago, and we see that it's really taking a big jump. And so this is not impossible by any means. Then if we start to look at the Nordic brand hub and this brand have actually have different names. But when we bought Rosemunde a few years ago, the ambition with that was that this was kind of a blind spot within our competence areas. We had a lot of offers of buying brands that were under -- that had financial issues, so we could pick them up at a very low price. But we just didn't have the capability or the knowledge around how to drive a brand and how to deliver on that. So since we worked with Rosemunde for quite some years, we knew them well. They were profitable. They were not like the most high fashion one but more focusing on essentials. We thought that this was a good fit for us to start the journey when we're trying to experiment with being a brand owner. Since then, we have bought Svea, a very small brand for a small sum that was -- they were in financial difficulties, and also we started our own brand, [indiscernible]. So we have 3 active brands and their revenue is quite low in comparison to the whole group. But we -- with the BNP, I want to talk about the opportunities, I actually want to turn it around in terms of this ambition. We are, as Peter also mentioned, first and foremost, a third-party brand. That's what we're focusing on. This is more to make sure that we use the data that we have gained over the years and that we benefit from that and also learn and that we're in control and how we can use it. But the ambition is not that this is going to be anything more than 5% to 10% of our revenue. So we're not aiming to become a brand house, but this will be a small part of our business where we can learn and fill out the gaps in the assortment where needed. And then finally, we have BooztPay. And if you look at this chart, you actually see one difference and that is that we haven't set like a revenue target for that one. And the reason for that is that the main purpose of BooztPay is to be in control in of the customer journey, and that's what started this from the beginning because we experienced that when we work with different payment partners, the customer gets -- they need to go out of the site to do their bank ID and they need to go back. And the customer experience wasn't really the best-in-class. So we really think that this is a tool for us to deliver the best-in-class customer experience. But also, and you all know that there are other players in the market that wants to benefit the data and the way our customers behave, and we don't think that's fair. We think that the value chain is too lean and the margins are too small for other businesses to make any money out of that. So we want to be in control. However, if we look at what we gained from in-sourcing -- our payment services, we have gained -- we have saved costs, and we also have a very good revenue share model that allows us to get some money on the top line as well. It's less than 1%, but it's a very important part to take the vertical -- to take ownership of the vertical. So what does this mean for our business? So if you look at the arrows at the bottom, you can kind of get a sense for it. Going forward and by expanding and building and growing the market share for our core business, we don't assume that the gross margin will go up. Actually, we need to make sure that all the benefits we get from different agreements that Mads' team is making with the brand owners in some ways, that probably will go back to the customer. But we can stay very competitive with the margins we have, and we assume the gross margin of 39% to 40% from these businesses to maintain. However, with the scale efficiencies we will get by growing the business, obviously, we expect a higher EBIT margin. When it comes to BDI and BMP, that is 100% gross margin. Therefore, we place the arrows straight up. And the EBIT impact is also positive, but obviously, we have some costs related to building its systems for Jesper's team. People in both Mads and Peter's team and there's some other cost associated with it. Brand hub is the same. It's -- they have a higher margin than we do. So therefore, it's in that range and also a higher EBIT margin. BooztPay 100% gross margin there as well and quite profitable. So we said that our long-term ambition is to have a margin that exceeds 10%. And there's different ways of going there. This is not the only true model, and this is exactly how it will be. But we've drawn this in order to show something that we think is quite reasonable. And if you noticed something we have talked about this 10% margin possibility over the years. And it's a little bit different from what we talked about before. And that is actually due to the marketing cost ratio here. But let's start at the top. So the gross margin, we expect from the scalability of the other revenue streams that there's a potential impact of around 1 percentage point. Will that be near term? No, probably not, and especially not in this climate, then we will use every tool we have to make sure we grow and the gross margin will probably remain quite flat. But going forward, having other incomes, it should increase the gross margin slightly. In terms of fulfillment, we said over the last couple of years that we believe 11% fulfillment cost ratio is a good spot. But we also have seen quite increases in average to order values we are becoming more efficient. And we also know, and I know you're very efficient then, but there's still some more room to improve. So we believe that 10% long term is not at all impossible. Admin, the same things goes there. If we double our size, we shouldn't double the number of employees. The fixed cost is relatively lower. So to decrease this by 1.2 percentage points, it's -- it shouldn't be that hard. Depreciation, fairly small change. Obviously, right now, we have overcapacity, and that will go a little up and down, but 3%, we think is fairly reasonable. So marketing 9%. Is that reasonable when you're at a mature state? Personally, I would say that it's a little too much, and we also think that it can go down. But we want to be a little prudent here and not only -- it would be quite easy to just say all savings will come from lower marketing costs and then you have a higher adjusted EBIT margin. We think that this shows and even if the marketing cost ratio would be lower. Obviously, the margin could be higher. But by showing this, we can show that even if marketing costs remain rather high, we -- there's a good road to this 10%. So finally, capital allocation. Up until now, we have prioritized building capacity, and we spent quite a lot of money on that and quite a lot of efforts as well. Inventory in terms of -- in the market that we -- or the business model that we have, where we make 2 big buys every year, we take a bet on inventory. Sometimes, we also -- Mads comes up and said that he found a really good deal, and he needs x number of millions to make sure that we can grow everything we need to, and he should be able to do that. We need to have that flexibility. We need to be able to be fast and that means that we need to have some room in our net working capital to take the deals that are on the table and also make some bets on new categories that won't work. Innovation is a lot about what Jesper said. He needs more developers, so we need to invest in more developers. We also need to invest in other type of innovation, but this is something that we've been favoring throughout our lifetime. And then finally, people. It's people who build the business. So obviously, we need to invest in people. And I think this is a side note. But we're just very proud of it. And during this time, when it's really, really tough on the market, we've never had more happy employees ever, that are right now. So investing in our people, actually, it's hard to do an ROI on this, but having the most happy employees at this time when the market is tough, I think it's a proof that we are investing in our people. Then previously, we also said in that -- when we did the dual listing in Copenhagen, we did a capital raise and we talked about the acquisition possibility. Different types of acquisitions could be relevant that we have talked about gaining category expertise. And that was one of the things when we launched home, for example, or Beauty, there was a lot of talk and we got a lot of questions around whether it would make for us to actually buy a category specialists to get a head start into that category. It's been something that we've been looking into. But -- and boiling down mostly to the average order value, we could never make sense out of that. So it always ended up us building the category itself. So this is something that we haven't done. When it comes to technology, we have invested in with -- we've been doing a few acqui hires, it's a small acquisitions, but still, we made them, and they have been very successful and growing. For example, Jesper's team in Copenhagen, we call the innovation lab, they work with the app. It's very hard to find app developers, so we managed to do acqui hire there, which has been very successful. Nordic market presence, not something that we've done some -- we've been able to manage the Nordic market quite well on our own. And then selected brands, and that's the Rosemunde acquisition that we talked about. And then we have an empty square here, and that was because it wasn't our priority back in the days. So if we look at the cash flow deployment, it's one thing with priorities, but what did we actually spend our money on. So as you can see here, we have spent quite a lot of money on our tangible CapEx, and if you look at the right-hand corner, the financial liabilities, you can actually put that on top on the tangible CapEx because the liabilities are directly connected to the auto store expansion and warehouse automation. We have financed quite a lot of those investments ourselves. And that is due to different reasons. I think one is that when we started with this, both the technique that we invested in was rather new. So the repayment period was quite short. Also, we were less mature than we are at now. I think we reach -- we are much more bankable now and we expect to remain that. But we find its quite a lot of our investments ourselves, intangible CapEx, Jesper's people basically and then we've done some M&As. And if you look on the right-hand side, we've done a few equity issues, one at the IPO in Stockholm and then the one in Copenhagen, when we listed in Copenhagen. So what is our future? Or what are our new capital allocation priorities? Well, we've changed them because we think we are at a different stage from a maturity perspective. We will continue to invest in capacity. As Sven talked about, we need to build a new warehouse. Can we finance this in a less cash flow up and down way? We think so. We have a strong balance sheet. We think we are bankable. We think that we can look at different alternatives of financing. And I can't say how that's going to look like right now, but we're obviously going to look at the most favorable one. But the assumption is that we maybe can even out the cash flow slightly. Inventory, if we're going to grow -- to have a 10% market share, obviously, we need to invest in inventory in quite a lot. So you can expect that net working capital swings will be quite high that we won't have this perfect net working capital. We need to take chances, and we need to continue to have the swings we have. But obviously, as the business matures, it will be more and more lean. Innovation is something that we -- and people is something that we need to continue to invest in. So there's nothing new there. What is new is that due to us having some excess cash and also that we expect to have positive cash flow generation in the coming years, we think it's time for us to start -- consider when to return some cash for the shareholders. And we don't see dividends as the primary way of doing it, but rather to do -- the Board asked for permission from the AGM to do share buyback. So that's the methodology, we think makes more sense. But obviously, that's not up to us. But if the shareholders agree, we think that, that would be a favorable way of doing it. And just to repeat here, fulfillment capacity we think we have up until SEK 11 billion of sales. That means that we need to invest around SEK 150 million to SEK 200 million, per year, whereof SEK 100 million is related to the warehouse and the rest innovation and other smaller things. When it comes to acquisitions, it's still an opportunity. And the opportunity would be primarily on the vertical. And I think you sense that from what I said before, that it's -- we don't see that there was too many interesting targets to buy in relation to expanding on the horizontal part but rather on the vertical, making sure that we are in control, making sure that we have the right people, that we have the right tech structure and such. So acquisitions is an opportunity, but it's not a priority. I think that's it.

There we go. We will kick off the last Q&A session of today. So now it's the time to get all the good questions out. And I can see we will start with Michael.

If you suspect here.

Mike Benedict from Berenberg. My first one, you used to talk a lot about the commission model or a commission type model making up a sizable proportion of your business in the medium, longer term. Clearly, that's no longer the plan. I guess what's changed over the last few years? .

When we talked about the commission model, Mike, was that we said, okay, looking at department stores in the past, at a mature state, they started to kind of to do a commission model where the brands owned the inventory and the brands were responsible. The problem with a model like that, and you see that with -- also with traditional department store is that they tend to become lazy. If you don't own the stock, you become lazy. So meaning that you don't care if you have the right stock at the right time. And having met the guys, we're all about control. So I think that we will delay probably after what I'm sitting in a retirement home to do that part because it's just basically that -- it's one 1 of a big face that you become lazy. If you look at to the EBITDA of department stores, if you don't own the stock, don't care if you have the item in the right color or the right size. And that's kind of the route to be relevant. So I think that kind of -- we will wait as long as possible to go down the commission. I know that investors like the idea of having a lean balance sheet. And we've been hammered over 5 years, why don't you do a marketplace model, what we also have seen is that the marketplace point is a lose, lose, lose proposition. The brand owner loses, the retailer loses and the customer loses on that proposition. So kind of we stick to our guns, and we want to continue to own the stock, take responsibility and be able to match the stock and be in control of kind of the customer experience. Long answer to a short question, Mike, sorry.

No, very helpful. My second one is on the fulfillment ratio. Is the current ratio not as efficient as it's likely to get given you've got 1 fully utilized warehouse or close to fully utilized. And in the future, clearly, you're going to have 2. There will be split orders, et cetera. So I guess what gives you confidence that there's more leverage to come.

Well going into our operations, listening to Sven and looking at the opportunities we have in terms of making things more lean. So it's all about productivity. We have been the first runners on the technology we use, and we've been growing a lot. So it's been a lot, as you know, making sure that we just had the capacity. I think there's a lot to do with how we can do things smarter and a few of the things Sven already mentioned, how do we place things in the bins and how do we use it more efficiently. There's just a lot of fine-tuning that we haven't even begun with. So it's not that we're unsatisfied. I think being around 11% at this stage when we're growing a lot when we're expanding a lot, makes a lot of sense. But obviously, there's always some 10% to cut.

Can I add something to this one. Previously, we thought that we would have -- we would need a new warehouse in '24. So with all the measures we've done, we now probably have extended that for another year. So we actually kind of -- we are not at full capacity to say so. We have still a lot of space. So there is still kind of a lot of -- as Sandra is saying we are -- there's a lot of come first in what we're doing. So as you learn, you get more efficient.

And then also looking at the technology we have, and we're developing it all the time, there's a lot of things that -- and we built a scalable technology. So I think there's quite a lot to get from that as well being -- doing things smarter.

Great. And last one for me, sorry, as a fulfillment follow-up. Just in the medium term, as you launch and ramp up that second DC, do you think there's enough sort of efficiency savings to hold the ratio flattish? Is it like, it'll go up? Or...

Obviously, depending on where the market is, but around 11%, I think that's where we -- if we're around 11%, and that could be 11.3%, it could be 11%, it would be 10.9%, we think that's a fair place to be at this time. Daniel?

Daniel from Danske. Just speaking about sort of the scrolls, when it comes to the other revenue streams, you've come some way in some of them and some of them are quite new. And if you look at the ones that you've had for some time and clearly BooztPay goes right saying that it's some cyclicality to it, given that it's dependent on the frequency of own conversion and orders and stuff like that. But if you look at media partnership, which is, of course, also in structural growth, do you see any sort of cyclicality to that business as we speak right now?

It's actually a difficult question, Daniel, because of course, a part of the Boozt media partnership is linked to a buy, that's kind of -- so that's kind of -- that's the whole essence of retail meter. Is that kind of path. And then what our team has been very good at in the past is getting brands to buy more. Additional campaigns not linked to the buying. We're coming out of 2, maybe 3 exceptional good years for the brands. So it has been easier. And now we're going into maybe a phase where the brands will have difficulties. What we are seeing now is that in general, when you have maybe tough times, brands that tend to go more for performance marketing. And the retail media is kind of the ultimate performance marketing tool. So what I would think as an old media, after all, I was 16 years as a media planner buyer and advisory, they tend to kind of -- to turned down the offline marketing and combined kind of the one that gives ROI immediately. So actually we don't expect them to kind of turn it down. It might even be an opportunity, but kind of -- but it hasn't given us any reasons to believe that there would be a slightly downturn on Boozt media partnership. So if anything, with all the data that the guys can provide, it's kind of -- it should be kind of a happy days for a brand to know exactly what we're doing with countries with styles, so performance towards peers. So having -- when I was a media advisor, we talked about 50% of your marketing spend is wasted, but you don't know which half now, you can be extremely targeted. So I think that kind of -- I would say that it should be quite a cyclicality resilient? Can you say -- is there a word that you can say? So I don't see a reason why we should expect it to turn down.

You think it's going to be sort of a quite of a good buffer for you guys as the entire market experienced increased pressure on product margins?

Yes, that's where the best part of the brands. Now with a lot of our competitors going in for the marketplace model. So the brands don't even get cash on delivery or get cash. So us, we pay in cash and offer them a unique marketing opportunity. I think that's a very strong proposition in the market that might be in turbulence going forward.

And if we can use that to gain market share, that's what we will do.

And maybe a second question as well, coming back to sort of the long term, and I think you, Sandra mentioned it that when you went to the market in -- or you did have these targets, but you also said long term that this should be a double-digit margin business. And that's also, of course, what you're saying today, 6 years out. And I think Ronni sort of maybe answered the question when we talked about mix and how long it's going to take to get from 30% to 70% with new products and you said, plus 10 years, is that also how you should -- how we should view the sort of the long-term target ambition? Is that a plus 10 years? Or is that going to happen before? Or how do you see it? .

On EBIT?

Exactly.

I think we said that when we grow in line with the market, that kind of is the -- not to end the game, but that's when we reach that level of maturity.

And that's some time out simply .

That's some time out, but it also -- looking at the individual numbers, it can come before. I don't see why it couldn't, but I'm not promising anything.

Daniel at Nordea this time.

It's fun that you're all under one roof.

Yes, exactly, exactly. All right. So a question here on the market share on this reaching 10% in the Nordic region. So I've been trying to track that back, et cetera. And one question I have here is if you would split that down, if you look only on your apparel side of the business, what market share, would you say that you have in just that store at the moment? And perhaps also the online market share would be interesting to know. .

We actually have -- we have looked at the full business and not dig down into that part. But obviously, if we -- you can do the math and try and...

We don't really know actually.

And this is -- to be honest, it's 1% to 2%. It is what we assume. We don't know exactly. But we look at it as a full plate. And also going into the 10%, we haven't said that Boozt should be this part and Booztlet should be this part. But together, and I think you can see that in the recent quarters also were we used Booztlets to help a Boozt. Like that will be whatever makes sense for the full business, we will drive on. And if Booztlet has momentum, we will drive that one faster and if Boozt has a better momentum that we will drive.

Because I think I was a bit surprised that it was only 1% to 2%, but I think it's basically adding the other categories where you're very small.

Yes, yes. Exactly.

So I mean I just calculated on the apparel side, and I came to like 15% online market share, and that's 30% of this as a total to maybe 4, 5. Is it only -- is that sounds high? Or...

Yes, it sounds a little high, but...

I'm looking at them, they are not higher than 10%.

Not higher than 10%. Okay. Okay. That's a good indication.

But there's a lot of players not disclosing their numbers. So it's not totally easy to sort of get it.

But I think it's kind of -- obviously, 10% is not a science-based target. It's like -- it's -- we didn't say 9.9%. So it's kind of -- it's an ambition. We think it's realistic because historically, you haven't had any department store kind of being a regional power player. So you have had local champions in every country now. Denmark has [ Catalan ], Sweden, Norway and Finland. We think now is kind of we are the first ones to be truly regional and we're still small, and it makes a lot of sense if you look at the total ecosystem. So I think that kind of -- in our categories, it's quite realistic that you will have 1 or 2 very dominant players that will probably combine maybe have 20% or 30% market share of the total market. So which is why we said, okay. So our ambition is kind of to start by having 10% of the online market and then 10% of the total market. And if that's -- the first part is in 10 years and second part in 20, then it's a 20 and 20, but this is kind of what we believe is that there's a huge opportunity to grow still in Nordic because you tend to get very impatient and say, no, we cannot go in the Nordic, more or less, conquer the world. And we said that would be the biggest mistake with this because there's still a lot of growth in the Nordics and we just started. So this is why we say that we will have 10% market share. When it will be? We don't know.

And that's also key to the profitability, having -- at some point, you can't invest in more offline marketing in a geographical market. So you will get scale efficiencies on that. You have 1 warehouse, you get scale efficiencies from not having distribution all over the world. So it goes both for the market share and for the profitability.

Yes. Yes, because it seems like just that you were into that it tends to be like 1 or 2 players take the entire market. And you seem to be the players in the apparel space, then I think I saw some data a few years ago, then the estimate that you were like 10% of the Nordic and Zalando is like 20%, and that's a few years back and it should be higher now. But I just think on the other categories because then you have other players that has caught much of that market already. So I'm just thinking that it might be more difficult to get to the same kind of levels in those categories.

Yes. But you -- as Peter mentioned, this is like an add-on. So we're never going to be better than the best Beauty specialist, probably it's the add-on effect that gives us the extra value. But of course, we're looking at them. So we're trying -- because I know Mads will be upset with me if I said we're not going to be as good as them because we will try. But it is the mix effects that will give like the extraordinary...

Okay. Great. Then just a follow-up question on the margin side also. So reaching 10%. I mean it seems fully realistic. But I was a bit surprised when I saw the marketing and the fulfillment cost because I thought fulfillment cost will be a bit higher and the marketing a bit lower probably. I think that's the trend you have seen in other online players has been a few years ahead or a bit larger. So if I start with the marketing side there, so the -- was it 10%, 9%? So how do you -- I mean, what is -- would that be? How much would be to keep top of mind awareness and how much of that would then be like performance marketing investment. Can you -- how do you think about -- how do you come to that number?

It's a good question. I think we -- again, to go back, we were in the U.S. 3, 4 weeks ago and meeting U.S. investors. What they -- in their view, what they thought what had been the most disappointing thing about e-commerce is that all the promises made where that eventually marketing would come down to close to 0 because you had bought the customers and then profitability will come on its own. And they were all disappoint to say that marketing has not come down. And we've seen that marketing has not come down. So you cannot rely a business on marketing given all the savings. And thank god that we have -- so it's a high basket size and that we have low complexity our business. So our business model is not relying on marketing -- to giving all the gains. Obviously, being an old marketer myself. When I was advising brands, and I have been the adviser for McDonald's, not here, et cetera, see, et cetera, Jesper know, they tend to send maybe 2% to 3% of their revenues on marketing just to maintain the brand. And obviously, now we will kind of say, okay, that might be the case. But in a dream scenario, it's down to 5% to 7%, but I think it's just too optimistic to dare that it will come down now. So you should not bet your horses on that marketing savings will get you all the way. Of course, if marketing ends up at 5%, then, of course, the investors will be happy because then EBIT is above 10%, we're fairly perfect. But I think that kind of for now that marketing probably will stay at a relatively elevated level because especially in dire times with performance marketing and the build for model of Google and Facebook where the buyers basically beat the price up. So that's why you just cannot depend on marketing to give all the saving scenario and also, I think this is why you have seen this disappointments from most e-commerce players because they're just not able to deliver profitability because marketing costs are still way too high.

Okay. Great. And then just finally and on the fulfillment cost side also here. So what I think tends to be the case is that the last mile cost comes down a lot because you get better deals from the providers, et cetera. And then you get a bit of leverage on the warehouse and all that, but that tends to like level up quite on high level. So I'm just thinking now, do you still see better pricing with the last-mile posting order, et cetera. Do you have volume discounts still on that? Or where does that efficiency from now on come from to get down to the level you're targeting?

So the distribution is quite stable and has been quite stable, obviously, with increasing fuel prices, there's some pressure on the cost. But looking at that is balanced quite good. So obviously, we get better deals if we have higher volumes, but -- and then there are some increases in some. So it's rather stable. We expected it to be rather stable, maybe up and down a little, so we expect the efficiency mainly to come from fulfillment. And as I said before, I think that's more than doable.

I think if I can add one thing to that. Now some of you have the great privilege to go and visit our BFC today. And I think that will also help the understanding a little bit because sometimes when you say auto store, you have an idea that the whole flow that we are -- how we are handling goods is automated. But this is only a goods-to-person solution. So you need someone feeding this technology, and you also need someone to do the packing of the shipment. And it's, of course, looking into the future. It's not unrealistic that you will get more technology that will help you with some of these processes. So investments in the future will also go into automating to a further extent what we do at the warehouse today. But I think it will be -- it's much easier when you're up there. It's impressive, but there are still things that can be automated.

Maybe just follow on to that also. I mean what you also see is that you start to compete on same-day deliveries and city that you go down that route that, that becomes a competitive weapon. I've not seen you offer that anywhere yet, but is that -- I mean, Zalando's doing that in some markets, have they started to do it in the Nordics. You've seen anything like that?

No, we believe that their deliveries are actually slower than ours. But a few years ago, we expected a pressure on that. But nowadays, it's nothing that consumer asks for. And it's something that's less talked about also in the -- talking to the distributors, right?

Yes. If you look at the basket size, comparisons we did in my slide. Imagine that you have a basket size of EUR 45. There's no way in hell that you can afford to offer same day delivery for free. And the customers that are just not willing to pay for that and next-day delivery for free, the second day is fine. And as long as you have a free delivery option, then of course, you can add, and I think there's more push towards the industry to start charging for delivery and for returns and vice versa. But we have no incentive in doing that because we are -- we -- our business model is fine. Our basket use economics are fine. So I think that with regards to kind of improved quality in distribution. We actually have the upper hand because we have much more flexibility and room to maneuver than all of our peers with a low basket size. That's why in the end, it all comes down to basket size. And if your basket size is too low, you are in [indiscernible] rates.

Benjamin Wahlstedt, ABG. So this is a bit of a nitty-gritty question. Bear with me. Looking at other companies selling similar products to your home segment. Gross margins are well below your group average. The fashion set to be about 30% of your business in the long term, you have to assume the home will grow quite significantly. So what categories will sort of counteract the dilution from the larger share of home sales. This is obviously assuming that you also see a lower gross margin in the home segment, which you may or may not do.

Well, I would say that we may not do that.

And we probably not agree that it has a lower gross margin than the rest. Basically, home and Beauty for us are quite good categories.

And actually looking further down the profit line due to the lower returns, it's very profitable.

Yes. So we have -- so yes.

Yes. Perfect. And then another nitty-gritty question. Talk a bit about the fair use policy. You mentioned a level of like 1.6% of potential customers being essentially shut off. What is a mature level here? Or am I thinking about this the wrong way? Are you sort of shutting people all up?

How many crooks are there -- out there? I don't know, but it's a fairly small group. Peter, I don't know if you have a good question or not, it's...

I think we are a little where we show that [indiscernible].

It's also very exciting. You get very upset.

We have a team of criminologist who actually kind of go into the behavior and you would be amazed how kind of our Chief Scientist became and said, "We have this person who has claims." And he said, "imagine that you would take all the sand grains in the entire world." And I said to you, Okay. I want you to pick this, find this one specific sand grain. He said, yes? Okay. This person's bad luck, there's a higher probability that you would find the sand grain then you will have his bad luck. So -- and different -- one has tried with 27 different profiles. So it's detective work, but it saved us not only [indiscernible] saved, saved a lot of money. I think that's also one of the secrets why we are more profitable is that we have the data we've been able to identify because also there's no doubt that these people trail around. They are bad customers with other shops who might not even know that they're bad customers, right.

And if we sort of zoom out on the returns question, what are some initiatives you're working on right now to reduce your returns rate? Or is that something you are working on?

Well, we don't -- fair use is probably the only magic thing you can do that have a huge effect. But looking at it, it's working with the product's description. It's working with the data. It's working with the pictures. We -- over the last couple of years, we added more on the third and fourth picture, big pictures from the brands to see the length of skirt and whatever. So we're working on all these different things, data from -- now we do a lot of online returns, then we can get more accurate data on why people do return. So it's these small incremental things, but -- we don't believe that there's one. You can read in media about -- now you can scan your body and then there's no need for returns, and they will solve all your problems, that's just not working because the brands are not at that point where they have the same measurements and the exact measurements because they're being produced in different warehouses. So there's not magic. You need to do this persistently and thoroughly and continue to do it, and that's what we do.

Niklas from Carnegie. Can I ask about your view on the medium term, the medium term because you... .

I'm not going to guide some...

Yes. No, that's the short term. But the medium term, you're not -- or you're dropping your medium-term target. Are you still targeting margins of 5% to 7%? I assume you still expect to outgrow the market, but are you still targeting margins around 6%. And when we look at the 10% margin target, is that kind of going to be back-end loaded? Or do you expect a gradual transition? Basically, do you expect margins to more or less consistently increase from here? Or do you expect when growth starts to slow then you will see a sudden pickup in operating margins. I'm trying to see where you're going on the medium term.

Do you want to start or should I?

This is normally when I look at Ronni, and he says don't say anything. But of course, we don't expect like it goes from 4% and then suddenly it's 10%. So it has to be a gradual kind of increase with the fluctuation you will see. And I think that kind of where we are now, ideally, we would kind of grow from there and grow gradually into 10%, but I can -- of course we are -- again, we have to adjust to the market there is. I can ensure you that we will be profitable. We will fund our own growth. And yes, we intend to return money back to shareholders. So we think it's kind of -- of course, we are going to grow more than the market in general. That's goes as I'm saying. And ideally, we'll make this kind of gradual growth into the 10%. So it makes sense. It doesn't make sense for us to kind of have 1 year with like 4.5%, then next year, like 9%, and then so -- it will be kind of gradual, is that Sandra, okay?

If you just look at the history, you see that it doesn't come in the perfect way. So it will -- it will depend on our own performance, our own inventory management, the market and different things and how things -- how we will scale the different categories, how fast Peter will be able to grow -- get people from 1 category to 2 to 3. So it's not going to be a straight line, but obviously not huge bumps or drops.

You'll probably be disappointed if we are not within the band that you are implying, right? Did I said to much, now?

You are right on spot Hermann. And I also -- the reason why we -- how to get to 10% the way we showed it was also leverage on other cost lines. So the kind of dynamic you're talking about, where we all of a sudden take a big jump, would more be if you have the marketing approach that one day, I spent 10%. Tomorrow, I spent 5% now on the household brand. Things are good. But here, you actually have cost lines where we assume to have leverage as we go along and we grow into a larger business.

Very good. Second question, when you talk about the Nordic brand hub, you still talk about this growing from less than 3% to 5% to 10%. But you're not talking about M&A. So are you organically looking at growing private label?

I think it's a way for us to say that it's going to be a very small part of our business. We're not going to be a first party brand business. We're going to be a third-party business. Just like it's rounded numbers, it looks good to save after 10%. So that's the case of...

It wasn't even [ McKinsey ], who did this.

So it's just to say that we really like it, and we think it's interesting, and I actually think that Rosemunde brand is a really, really good brand and it can grow. How big it can be? We don't know. It depends on us. And then we have the small things, but we are getting approach every week, but someone who has something to sell and we're not really interested. So it's...

But we would like the opportunity to win. If there's a good brand that ends up in financial difficulty, we want to be able to pick it up, but it won't be SEK 200 million acquisition, then it would be like a few million.

Yes. Okay. Makes sense. Earlier today, we talked about pre-season buying where you used to be at 80% and now you're below 50%. Is there a risk with being at that level? I think in this market, it's great because there is a lot of campaign buy opportunity. But in market like we had 1 year, 1.5 years ago, it could be bad to have low pre-season buying. Is there a risk? .

Yes. I can answer that. Yes, there's a risk. Now we have met Mads. And next year, he might be standing here and say, you have to be elegant. And that's the beauty about it because no -- we have no documents. So we are basically aligning to the market and extremely flexible and the team knows that kind of we need to adjust. We like football, and we always say that's new match tomorrow. So even though we set a new record, something was happening. So at the current moment, it's been very -- it's been extremely useful for us to have gone into the market very conservatively with 50%. In 2 years' time, Mads may come back and say, guys, I feel it in the air. It has to be like 70%, 80%. It will be it. But I think one thing is sure and is that Mads and his team, they are extremely good at matching stock base because we have never had a write-down, right? So we managed to sell 99.5%. And this is a stock issue kills all businesses, right? And because you have so much kind of a -- you have warehouse, that is filled, you have -- your mind is filled with all stuff and it just destroys our position. So that's why he has kind of -- he has the pulse of the market. And at the moment, 50% is right. It might be 60% next year. It probably won't go much below 50%, right, because then that's [indiscernible]. But it might go up again. So I don't know if Mads agrees with me, but I've been working with him for like 8 or so. So I know this is how he thinks.

One last or maybe 2 questions.

A quick one from me. It's [ Carl from Carnegie]. The first question was on the follow-up on Niklas' question on the campaign buys. I think there was quite a substantial margin contributor in 2020 at least. And I wanted to ask as a longer-term, do you plan for increasing campaign buys as the share of total? And are the opportunities for campaign buys progressing or increasing as you're growing larger? Is that something that would be margin supported longer term?

I think the answer is the same as we had to the previous question. That depends on how the market looks like. We're not buying everything we can to get the best margin ever. We need to make sure that we buy the right stuff. And how much of the right stuff that is available depends on the market situation. So that will fluctuate if we can use that to hedge our margins and maybe decrease some product margins on other things, we will do that, but that's day-to-day business adjustments.

Yes, yes. And final one from my side. So longer term, if you manage to reach your longer-term ambitions with the market shares. Do you see any need of sort of capacity expansion or fulfillment expansion for example, closer to Central Stockholm or any fulfillment expansion outside where you're present today reaching those volumes?

Ideally, not. We know we -- we like simplicity and complexity at kids business and we kind of want to reduce friction. So when you we talk about that kind of the next warehouse will be within somewhere between 500 meters and 10 kilometers and that's already give us, okay, that's going to be an issue. So not an issue, but that's going to -- we have to -- that's a task we have to manage, right? So ideally, we will stick to the campus strategy and not having the satellite because the thing is that we are selling seasonal goods. So you risk ending up having to kind of either do internal cost stocking or you have to send 2 packages, right? And that's bad economics and bad customer experience. So as long as possible. And as long as we're staying in the Nordics, we will probably have 1 warehouse in a campus strategy, right? So -- because it really -- it doesn't really make a sense to have a satellite because unless we had a satellite of maybe 20,000 square meters in Stockholm, what will we put into our warehouse? Because it's extremely difficult to demand -- to forecast demand when 90% is seasonal stuff.

[indiscernible]. We agreed we would split the last one. So I just have one question. Your competitive cost advantage longer term, how would you encourage investors to think about that? I imagine it's related to the basket size to the distribution scale advantage and to the local procurement scale advantage relative to brands, but it's hard for me as someone who know your business that well to think about those 3 elements and how important they are in longer term?

Yes. Firstly, if you have this competitive cost advantage. That means that it's extremely difficult to compete against us. And I think the first ones to suffer are the physical retailers because there's no way, there's no chance that they can kind of match our cost structure. And the second will be the subscale e-commerce players in the region. The savings we're making, to be honest, a big part of that will probably go back to the consumers. But if we manage to keep just a small part of the savings, then I think we all will be well off. So I think that -- so we have kind of -- we don't fool ourselves by thinking that all the cost savings that it will go down in our pockets because I know this is -- a lot of it ends in the consumers' pocket, right? So that is kind of -- I think that the cost savings will benefit us in having an attractive offer, and then it could also benefit the [indiscernible].

Right. Very quick question then for me. Kristian Godiksen from SEB. You touched upon the opportunity with Nike, I was just wondering what is the opportunity there? And maybe you could elaborate a bit on why they are unwilling to work with you?

I know Mads knows exactly how much revenue he would gain from Nike, but he doesn't allow me to say that. So, neither does Ronni. But -- so we know that -- I don't know what they're thinking about. We were the last ones to launch. So we came in later in the market. And when we launched Boozt.com they have started the strategy of reducing number of stores and working with selected retailers. So that is also, I think, that there are strong forces telling them not to work with Boozt. We know that there's another sports brand that was told not to work with Boozt, but came to the bright side finally. But -- so I think that kind of -- it takes up, but eventually, they will join us because we have become such a strong force in the Nordics. And I think that they will join also because what I understand is that from [indiscernible] brands who opted for the DTC strategy during corona, they're finding limitations in the DTC strategy and they need to have kind of broader platforms. And we think that we are getting into a position where they -- it's difficult to kind of avoid working with us. So a long answer to a question where the basic answer is, I don't know.

But if they would come, we will treat them as VIPs and do a lot for them.

So they are included or excluded in the long-term ambitions?

We don't assume anything. We don't know. Well, maybe we do, but not in that regard. So no, they're not included.

So that's attentional -- additional upside?

Yes.

Is it me now?

It's you.

[indiscernible].

Round it off.

Yes. Yes, I hope that as many as possible will come to the BFC. It's for those of you who've not been there, it's quite interesting to see the operation, but I hope that we've managed to come across that we believe that we're in a strong position that we are probably stronger than ever before. We think that our kind of our position in the market is strong, quite unique and that the Nordics department store is strong. There's still a lot of growth to be had in Nordics. Our tech is very strong. It's very scalable. And you can imagine, frustrations in general, if you want to grow that if you have typically third-party platforms that limit growth. We don't have that problem. And also, I think that our fulfillment infrastructure is strong and well to grown. Yes. And we have a strong organization. Finally, you meet someone else other than Sandra and myself. And I hope that it has shown you that kind of the breadth of our team, and we have many more very, very good Boozt people. I was asked during the break, what do you see as our biggest challenge. I think someone asked Sven about that, but he knows and then I was asked, what is the biggest challenge? I think our biggest challenge kind of, at least short term, is to avoid complexity and to avoid friction. Typically, as you grow and sometimes you regard yourself as being bigger than you are, and then you start to add complexity. And my main mission is to make sure that we are easy, frictionless and noncomplex. I'm a simple guy from the northern part of Iceland. So I just can't have an overview of a very complex structure. So I think that's the main thing, avoid bureaucracy and making sure that we have a very lean team. We have a policy of being one, too few. There's no -- if you want a job done, give it to a better man, and we will stick to that. Yes. And we expect to have a tempting market share when we are -- when I'm done, at least or we are done and that we would be -- have a profitability of exceeding 10%. So in general, we are optimistic. We believe in the business, believe in ourselves, have confidence to be honest. It's not all easy, right? It's going to be tough, but we have authority. But again, if it was easy, then it would be easy for the rest, so we like when it's difficult. So that was the famous last words. I hope not.

Thank you to the Boozt team. Not everyone is used to talking to the -- some of the smartest people. So this was -- this has been a pleasure for us. We have really been looking forward to this to share more insights into our business and why we are happy to come to work every day to try and create this leading Nordics department store. We hope you know a little bit more about the business now. There will probably be a few follow-up questions, I assume, also from this day. But thank you to the people here in the room also to the ones listening in online. Thank you also for respecting that we took a long-term approach today, and we didn't talk so much about current trading. So we will be back at the end of next month, and we can consider that. So thanks a lot to everyone the ones who are going to join for the tour to the warehouse. We will meet outside. You probably need to go to the restroom or pick up something. We will meet out here, gather and then we will go to the bus united, so to say. So we don't lose anyone on the way. Thank you very much.