Alimak Group AB (publ)

Welcome to the Alamak Group Q32026 report presentation. For the first part of the conference call, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound 5 on their telephone keypad. Now I will hand the conference over to the speakers, CEO Ole Christian Jodahl and CFO Sylvan Gronsch. Please go ahead.

Thank you and welcome to this quarter three call 2026. And as always, I have Sylva with me here. So turning page, Alima Group, diversified global industrial company. We are a leading provider of sustainable access and working at height solutions. 3100 FTEs now, we are present all around the world. and we have some fundamental drivers supporting our success. On the global trend side, health and safety is an important driver for us of course, urbanization, the current regionalization that we see driven by geopolitics and also electrification to mention some. We do have a leading market position in the niches where we operate, which gives us a good base to drive business. We have a long history. We have machines installed all around the world, which also forms a fantastic base for our service and aftermarket business. And a relatively light model, which gives us a strong balance sheet and good cash conversion. Turning page, our strategy. This is the new height that we launched back in 2020. We renewed one and a half year ago and it's also now what we are continuing up towards 2030. It has served us very well and we will continue to drive the same strategy going forward. Turning page, our financial and sustainability targets you see here. To mention a little bit on the financial side, eight to 12% average annual revenue growth to reach a 20% adjusted the beta margin by 2028 and have a leverage of below two and a half times over time. And also this year, we also signed up and got approved our science based targets. Turning page and diving into Q3. So we saw a solid order intake growth and also resilient profit in the quarter despite a still challenging construction related market. We had order intake of 16% and the 4% organic and the four out of five divisions delivered organic growth. It's the construction piece which is still struggling on the overall business but it was and that's also affecting facade excess which again had a somewhat lower order intake. But Probel strengthens FacadeXS and the group and provide a significant margin contribution to that business, but also a broader market market exposure, making the business more diversified and resilient, which is an important strategic drive that we have had for some time to become less dependent on tall buildings. Which is currently a very challenging market. We also have not delivered fully on our profitability ambitions over the last couple of quarters. That's why we also launched some cost efficiency and reduction activities in the quarter. So we have identified 80 million SEK in annual savings, which will then have a full impact from Q2 2027. And this involves four out of five divisions and also group functions. So the only division which is not part of it is wind, where we are so lean, so it's really hardly anything to do in that sense, at least as we see it now. Short term also the leverage increased in the quarter due to Probel acquisition. So we are at 282 reported and 260 if we would include 12 months of Probel earnings. And with our good cash conversion we should be below the two and a half target by the end of the year. Turning page, order intake was then 1 billion 789 million SEK, up 16% or 4% organically. Organic increase in industrial, wind, construction and HSPS. Revenue was 1 billion 783 million SEK, up 8% or down 2% organic. And we saw organic growth in wind and industrial. adjusted the beta at 318 million sec up from the 287 giving a margin of 17.8 versus 17.3 where then as you understand Probel contributed positively to the quarterly margin and we still continue to see a very weak construction margin also this quarter which is of course disappointing and we will come a little bit back to that later, while façade access and wind improved operationally in the quarter and industrial and HSBS remained stable. And we have now then four out of five divisions reporting around 18% or better in EBITA margin. Turning page, service side, key component of course, we had order intake of 788 million SEK in the quarter, 32% up or 24% organic. The increase came from facade access, construction, HSBS and wind. The revenue was 730 million SEK, up 10% or 3% organic, with positive contribution from facade access, HSBS and wind. And we also, as you see, we had a very strong book to build in the quarter. And this is important for us, of course, that we are growing this piece of the business, which is a strategic focus in each division. Turning page facade access order intake 448 million SEK up 18% in the quarter or down 8% organically. The organic decline was primarily driven by project award delays in the Middle East and also North America. And while it's also partly offset by our focus on refurbishment, retrofit and replacement, where we saw nice growth in Europe, but also some new equipment orders in Southeast Asia. To be further said on the order intake side, we have had no significant larger orders in this business this year because that market is very, very slow. That also is a very, very price pressured market currently, so we will not take business which is not supporting our margins. But as part of our strategy, we have talked about for long, you know, we want to go into lower and medium high type of buildings. And this is also then what we are doing and also what we are doing with the acquisition of Probel. Revenue was 554 million SEK, up 13%, down 10% organically. Organic decrease was due to the lower backlog. EBITDA 101 million SEK up from 64. Margin 18.3 versus 13. We continue to see improvement in the operational margin, but also of course a significant contribution from ProBel in the quarter. Turning page we continue to drive strategy and our growth initiative so the compact BMU solution that you see on the picture here for more medium height buildings is something we have been reviving and have had success with in the Benelux and we are now also creating more Europe or opportunities across Europe IDS we have been focusing for a long time continue to serve as well and we also signed some nice contracts in Dubai and Saudi Arabia in the quarter which is nice because the bigger things or main product projects in that regions has been more or less full standstill for the last six months which is also affecting the business But we also continue to focus on infrastructure, as you know, and we have now also established a dedicated team in the US for this. The ProBail integration started off very well, and the business is continuing like it were prior to acquisition, which is of course important. I just want to highlight also there is some seasonality to this business. where typically Q2 and Q3 are the stronger quarters and due to winter normally then Q4 and Q1 are slightly lower. But nothing really fundamental but some seasonality to it. We continue to also drive the operational improvements and in this group project we also identified more savings potential in façade access and that amounts to then 20 million SEK of annual savings effective from Q2 next year. Turning page to industrial, order intake was 410 million SEK up 15% or 11% organically. New equipment order intake was up against last year, supported by mining ports and also power projects in North America. While we also see that several large equipment opportunities that we have been working on, they remain in pipe, nothing really fundamentally closed lately. The service business came down also somewhat in the quarter due to timing of refurbishment projects. Revenue was 400 million SEK up 7% or 2% organic and driven by revenue growth in previous or new equipment in previous quarters. EBITDA at 99 million SEK up from 92 giving a margin of 24.6 versus 24.5. And the positive gross margin development that we saw allows us to also continue to invest in sales and product development. Turning page, the market still remains relatively strong, even though we also have some weaker pockets that we have seen throughout the year. It's strong equipment growth in Americas and Asia Pacific, especially in power, mining and heavy industries. While on the oil and gas side, we have, as you understand due to the war, seen nothing happening over the last six months. and also another effect is that we see in the oil and gas segment is that the aftermarket it's negatively affected because the sites that is then up running they run full speed which means that they don't take the time to do bigger overhauls or services so it's something which we are sure is due to come We continue also to focus on product development, and we are launching now a new competitive SE range, which is a more cost-effective machine. It's more flexible and also easier to install with lower CO2 footprint, etc. So product development remains, of course, a very important piece. Turning page to construction. Order intake was 398 million SEK, up 10% or 6% organic. We saw strong order intake in India and Australia. Australia is where we run our own rental operations. So that gives us a strong connection directly with customers. And India, we have, it's an important country, of course, which is supported by our Chinese factory. While the demand for new equipment in Europe continue to remain very, very slow. While we see good momentums for parts and service. Revenue was 318 million SEK, down 4% or 9% organic. and this is also due to some delay in project startups in the quarter that we were expecting to come so these are projects in the order book EBITA at disappointing 22 million SEK down from 44 giving a margin of 6.9 versus 13.3 and it comes down due to lower revenue, but also some operational inefficiencies. And we are working on a lot of things to improve. Turning page. The market remains challenging, as I was saying, and we also continue to see rising interest rates. So to expect a short term change in the market is not there. While at the same time, we have seen now two quarters in a row where we have order intake growth. And also three quarters where we have had a positive book to bill. So there are signs that we might have seen the worst when it comes to order intake. We also see that the infrastructure projects, you know, there are quite a bit happening still, of course, as you know, in the construction sector. And that was particularly good for us in Australia. And again, there we have our own rental setup which gives us the possibility to be close and get that business. So some pluses in our business currently it's our own rental that holds up well even though we also face a tough price pressure in that business. The aftermarket is important and good for us. What we have done on light machinery over the last years to develop that range is providing us sales these days. Special machines you know for special bigger projects that's something we are good at and we get. And of course, the China setup that we have servicing APAC Eastern Europe, Latin America, Asia Pacific, etc. is good for us and also the used. It is the new sales in Europe and US, which is under on very low levels. We are doing cost reduction activities. Karin has also been here now for around six months. Lots of focus on making the organization more efficient and performance driven. She has done quite a lot of changes to the organization. And also we are reviewing business models to see how we can actually get even closer to customers and more in control of the market. We continue to invest, of course, so that's still a fundamental piece, something we do not stop, because the market will also come back one day, and we work on improving the position, so we work with the product portfolio, we work with the digital, we work with safety, etc. Turning page, height safety productivity solutions, order intake was 359 million SEK, up 18% or 5% organic. We saw good momentum continuing with the elevator customers and also Middle East India. Significant orders with lifting solutions for the energy sector and also the construction market is affecting this business and that continues to be soft and especially affecting some European and US parts. Revenue was 318 million SEK, up 3% or down 2% organic. and the strong deliveries to elevator customers was offset by some weaker performance in North America. EBITA 57 million SEK same as last year giving a margin of 18 versus 18.5 last year and the positive growth margin development also here which we are also using to invest in selling and R&D to ensure profitable growth. and turning page and our profitable growth plan and the transformation continues. We invest in product development. We are launching a new self-retracting lifeline as you can see here. Also continuing on organizational changes. We have done some streamlining in France and in the US. We continue to build on our service capability because one fundamental piece of this business is that we try to do more direct to also get more in control. We will continue the distribution business but also more direct and then service is an essential piece that we can grow and need to develop connected to that. But also to leveraging on our special application competence and we have had some very nice wins in the energy sector in Europe last quarter. Turning page to wind order intake was 179 million sec up 14% or 10% organic. We saw a growth in the new equipment in Northern Europe and the US, while China was somewhat softer compared to previous quarter. But also we need to note that China was extremely strong in 2025. Revenue was 202 million SEK, 26% up or 23% organic and driven by, of course, a strong backlog. EBITA ranged 39 million SEK up from 30, giving a margin of 19.2 versus 18.6. Higher sales volumes and good performance, I would say almost always, offset by a slightly unfavorable product mix in the quarter. Turning page, the Western OEMs had a strong order intake in Q3, which also points to more business for us on turbine installations from 2027. So that's good. Offshore, it was unchanged in the quarter, but still look very strong medium to long term for both Asia and Europe. We see some skill shortages in this industry which is giving us a nice opportunity to train more people good for our training business and also the repowering which I mentioned last time that there are also now turbines that starts to be rebuilt which cause you know that they redo everything inside and also driving new lifts and the good business for us. We continue to drive our strategy in India. We have expanded with a new facility. We get start to get the first business there. And we have also established a new training center in UK. From an innovation and product side, we have launched a new fall arrest device, which has kicked off very well. And we are also launching or we are getting into this service because when we designed the first lifts, which is now around 20 years ago, They were having a defined life of 20 years, which means that if you want to go further, they need a full overhaul by us. So that's also a nice off the market business, which is coming up. Then we are with the more financials and I leave the floor for Sylva.

Thank you Ole. Good morning to everybody on this call. And so we saw in the quarter that adjusted EBITDA increased by 11%, whilst revenue increased by 8%. So that obviously implies an adjusted EBITDA margin expansion, which is coming from the high margin of the Probel Group of companies. Excluding Probel, the margin was 16.8% in the quarter versus 17.3% in Q3 2025. and the reduction, as explained by Houlle, is mainly due to the construction division. As always, I will provide more details regarding gross margin and SG&A on the next slide. Items affecting comparability amounted to 18 million SEC in the quarter, and most of them related to the restructuring costs, 15 million SEC out of 18. The total runoff cost of our cost program is expected to be around 40 million SEC and most of the balance will be recognized in Q4 2026. As far as the quarterly amortization is concerned, the increase is due to the ProBel acquisition. It is based on the preliminary purchase price allocation. And looking forward, we should see quarterly amortization charge of slightly above 50 million SEC. Finance net in the quarter was close to our expectations at 43 million SEC. And the increase is due to the higher borings implied by the Probel acquisition. Looking at the next few quarters, we should be around 40 million SEK per quarter. Taxation rate was up in the quarter, 27.7% versus 24.9% in Q3 2025, that is due to country mix effects. This is consistent with what I communicated in July, and then we see the lower earnings in Sweden, and we see the growing share of the Canadian earnings in the total group earnings. With the current country mixed, we should continue to be around 28% as far as the taxation rate is concerned. So overall in the quarter, net earnings went up by 13% and the main driver for that increase was the higher EBITDA. Next, the gross margin increase in the quarter and excluding items affecting comparability, it expanded by 250 basis points. with Probel contributing 60 basis points to that increase. All divisions expanded organically in the quarter with the exception of construction affected in particular by the low revenue. So we see that we have been managing quite well the inflationary pressures implied by the war in the Middle East. That's a focus area and will continue to be a focus area for us in the coming months and quarters. Regarding operating expenses, as a percentage of revenue, excluding items affecting comparabilities, they went up this quarter. This is partially driven by some investments in R&D, sales and marketing, primarily in industrial and HSPS, and those investments are gradually being off. If you look at the organic worth of those two divisions, we see the impact. But beyond those investments, we have seen the cost base, which is too high, in particular in the construction division. And that's led to the cost program mentioned by Ulleh. In construction division, most cost activities have already taken place. Operating expenses will start to come down in Q4 2026 with the full annual effect from Q1 2027 onwards. And as you know, we have identified additional efficient gaze outside of construction in other divisions and the total annual savings for the group will be 80 million SEC with full effect from Q2 2027 onwards. Facade access will be the second largest contributor to those cost savings after construction. Moving to the next page. The result for the period was 150 million SEC versus 133 million SEC in Q3 2025. This is a 13% increase. Excluding items affecting comparability, the result for the period was 167 million SEC versus 173. This is a 3% decrease. EPS was 1.42 SEC versus 1.2025 in Q3 2025. That's a 13% increase adjusted for ISE and acquisition related amortization. EPS was 1.88 SEC versus 1.78. This is a 5% increase. Moving to cash flow. Overall, I'm satisfied with the operating cash flows in the quarter. It's 196 million SEC, same as last year. If you look at the reporting numbers, we increased working capital by 57 million SEC. But this increase is due to two very well identified effects. First, the impact of the mechanics of the Probel acquisition. We acquired Probel with a working capital below normative working capital. So it's affecting cash flow from operations, but it doesn't really reflect any operational issue. The second impact is a phasing of the revenue. Within the quarter, we had a strong September in terms of revenue with a higher share of the September revenue of the total quarter versus previous Q3s. And of course, this is affected negatively. outside of those two impacts working capital would have been stable which is more where we want to see so you know it's well understood where we are there and you know we are positive for q4 and we'll continue to to focus highly on cash generation in q4 in the coming quarters moving to the Next slide. The net debt was 3.8 billion SEC at the end of Q3 versus 2.6 at the end of Q2. And of course, the increase is primarily due to the financing of the ProBel acquisition. More marginally, we had some adverse forex effects due to the weakening SEC. And this was, of course, partially compensated by our operational cash flows. Leverage was 2.82 reported, including 12 months of probate earning. It was 2.60 versus 2 at the end of Q2. And it's, of course, a high priority for us to reduce debt and deleverage. And it's our number one capital allocation priority. Beyond that, we'll continue to invest in organic roles, in particular with R&D, sales and marketing expenses. I refer to what we are doing in particular in industrial and HSPS divisions. We continue to be active on our potential acquisitions in a selective way. And of course, at the same time, we are mindful of the leverage target. And finally, we are committed to delivering our dividend according to the policy, knowing that, of course, in the end, it's a board proposal and AGM decision. Finally, one comment regarding grossi, which increased in the quarter thanks to the impact of the Probel margin. it increased to 22.9% excluding Goodwill and 9.3% including Goodwill versus 22.7% and 9.2% respectively in Q2 2026. On that, I will hand over to Oule.