Alligo AB (publ)

Welcome to Aligo Q1 Report 2026. This is my 51st quarterly report and my last. Presenters are, as always, Iria Minseborn-Blander, our brilliant CFO and Deputy CEO, and myself, Kleiner David, CEO. As always, we keep the presentation fairly short. You can read most of it on your own. And we have, as you know, some specific topics. This time it's actually three specific topics. Welding, Eurologistics expansion and tools Finland. So this is Aligo. We are getting closer slowly, slowly to 10 billion SEC turnover. Sweden being the largest country. 2,400, a little shy of 2,500 employees. And 240 stores approximately. And we have a little less than 20% of own brands. It's 18 now. And as we acquire companies, that figure is being diluted a little bit. So then you have to start picking up again. But it's 18% as it is today. But in the quarter, all countries increased their own share of all brands. The integrated business, we normally say it's 80%, but it's actually 79 this quarter. And that part of our business is fully integrated ERP, logistics, finance, HR, everything. It's fully, fully, fully integrated. And we make acquisitions in that part, but then you are always fully integrated. And then we have our other part, which is the non-integrated companies, group of companies, which today amounts to 21% of our sales. So it's product media, 17, 18 companies, welding, which now are up on eight after last week's two acquisitions. Our wonderful Batterilagret and some other companies where we normally highlight HDP being a big and very profitable part of those. Highlighting Q1, macroeconomics. It's hard for anybody to get away from all this flow of information, what's happening. And we are not affected directly we can see price increases but we are very limited affected but of course it could affect the market situation if interest rates are increased or the trust for the future is getting down so the consumption goes down that then of course we will be affected as well but we as a team are unfortunately in one sense or luckily in another sense well trained in maneuvering in tough conditions. We built this entire group, Aligo, in extremely tough environments, starting our journey with COVID and then freight disasters and superinflation and currency turbulence. So we are unfortunately in a way very used to navigating uncertain and tough environments. Delivery capacity is good and stable. All central warehouses and all those flows are working nicely. So Q1 in brief, revenue 5.6% up. It should have been 7.5 if the NOC and the euro hasn't affected us negatively. What is especially good is that the organic growth is 4.9%. I would have hoped it would have been 5.0. It is actually 4.92%. We're at 300% from rounding it to five, but it is what it is. Cash flow, it's a weak quarter normally. We had minus 38 million last year. We have plus 209 million this year. Adjusted EBITDA up 53% from 74 million to 113 million. A good jump. So the adjusted EBITDA margin goes from 3.3 to 4.8, and the gross margin is Highlights, we have been pushing for sales like forever and we continue to push for sales. And as long as there is a market to fight for, we will fight in that market. And I think we can, in part of our organization, see already now that that gives results for sure. We are very good at managing price and it's also good to know if there will be price increases following this Mideast turmoil. And we increase the share of all brands in all three countries. Sustainability, I think we mentioned it already last time, but we are awarded platinum by Ecovades. Puts us for top 1% of all the companies, 50,000 companies, I think, around the world. And that's very good for us when we tend to large customers or to the defense sector and so forth. And operationally, the new bank agreement refinancing is in place. We are developing continuously. Capital efficiency, you can see in the cash flow, is well underway. And yesterday we decided to actually buy the neighbor plot in a lot in Örebro and to start building there. So update. Welding just to show on the map that they are becoming, quite a few of them now, eight, two of them in Finland. and the rest in Sweden. And we are very proud of this group. There are more to be acquired, but we already have a good foothold in Sweden relating to welding. So 450 million and plus 100 employees. And it's good also when we, more and more going forward, will be able to even through those businesses offer things we have. We have the small service solution, we have workplace equipment, we have other things that the welding customers could need. So we will boost also those companies with offers we have. And also recare, of course, could be offered to the welding company's customers in that sense. Logistics expansion in Örebro could fail. Why do you talk about that? But it's more important than it feels. In our central warehouse in Örebro, we have a road on two sides of our building. There were two free plots on either of the remaining two sides originally. And some years back, we bought one of them when we did the latest expansion. And for the last 12 years, I've been looking at the bigger plot, which our neighbor had an option to buy for many, many years. But it's important for us to buy that to keep all those open for expansion. So for anybody else to build something there and lock us up would not be good. So we have been having long discussions with Örebro municipality and we have come to the conclusion that we can buy that slot and it's 40,000 square meters and we will build an extension to our central warehouse. Because last time we extended outside the warehouse, we actually did that after the acquisition of Gråns. And after that, we already included the tools business. So we are one extension behind in a way. But it's a limited investment. Super good to have all doors open for the future, logistic-wise. And Örebro is a Nordic hub. It's not only for Sweden. It's very much of a Nordic hub for us logistically. And that's just the picture. how it will be, and it's plenty of space for future expansion. So we will need to grow and acquire a lot to fill up the remaining square meters where we could build. Finland, it's running very nicely, even a little bit ahead of time schedule, actually. 40-plus persons have left us. We're close to a couple of shops. They're phasing out two reasonably fair-sized customers, but still we have an organic growth in the quarter of 11.1%. So the Finnish team with Håkan at the helm is doing a brilliant job, and they also had a good EBITDA development in the quarter. So it looks good and stable in the Finnish business. Financial, Siriann.

Yes, thank you. And as Clay mentioned, the Q1 result exceeded last year's and cash flow improved, leading to reduced leverage. Additionally, stabilized demand across all markets and the impact of cold winter weather at the beginning of the year contributed to organic growth. Revenue increased by 5.6%. 6% in the quarter, driven by organic growth of 4.9% and growth from acquisitions of 2.5% contracted by negative FX effects. We had organic growth across all countries and our store sales benefited from the cold and snowy winter weather. EBITDA reached 113 million SEK representing an improvement of 39 million or plus 53% and the increase was due to improved results in all three countries and was driven by higher volumes, cost reductions and contributions from acquired businesses. The gross margin remained stable compared to last year as positive and negative factors offset each other. For instance, increase in sales of our own brands and lower purchase cost in U.S. dollars contributed to improving margins. On the other hand, a higher share of sales from the non-integrated business, which has structurally lower gross margin, along with customer mix effects within the integrated business negatively impacted the overall gross margin. This is a business slide, but as you can see, Sweden has the highest share of SMEs and own brands, followed by Norway, while Finland has the lowest. And this directly correlates with the profitability in each market. The higher the shares, the greater the profitability. And the lower gray boxes show the share of own brands within the integrated business. And as shown, this share has increased across all countries, driven by a 15% increase in worker MPP sales on group level, which positively impacted the trading gross margin. Moving on to some highlights of each market development in Q1. Starting with Sweden, there we had revenues that increased by 10%, driven by both organic and acquired growth. Organic growth is driven by both an increase in store sales, primarily of wind-related products, and growth in direct sales. And the increase in direct sales is related to both larger customers in the manufacturing industry and project orders to the defense industry. And the improvement in EBITDA is due to higher volumes, cost savings, and contributions from the acquired companies. Organic growth in Norway was driven by increased sales of workwear and PPE in stores, while direct sales were flashed overall, but declined in the oil and gas segment, which started to slow down in the second half of 2025. EBITDA improved due to higher volumes and cost reduction. And when it comes to Finland, SAFe continues to recover among larger industrial customers, which balances the two larger customer relationships being phased out. And as Clay mentioned, the efficiency program in Finland is progressing as planned, and the improved results in the quarter is due to high volumes and cost savings. Operating cash flow improved from last year, given by higher EBITDA, lower income taxes paid, and lower inventory levels for our own brands, following the strong sales of work for MPPE in the quarter. Even if the capital efficiency project contributed to positive effects in Q1, there is still more work to do. We aim to reduce net working capital as percentage of sales from the current 28 to 24%, which was the level in 2022. And when it comes to investing activities in the quarter, it relates to organic investments, which were lower than last year. And the capex to depreciation ratio was 0.7 on a rolling 12-month basis. And we didn't finalize any acquisitions during the quarter. However, we completed the acquisition of Patrilaget in February last year. During Q1, leverage continued to decrease due to the improved EBITDA and cash flow. And the net debt to EBITDA ratio decreased from 2.5 at year end to 2.2, which is well within the financial target range. We refinanced the business during Q1 and increased the sustainability linked facility by 500 million, bringing it to 3.1 billion SEK. And the new facility runs until February 2029 with the option to expand twice for one year each. Available cash and unutilized credit facilities total nearly 2 billion SEK at the end of Q1. Covenants relate to interest coverage and equity asset ratios. And these are fulfilled at the end of the period and there is good headroom before reaching the threshold. So in summary, we have a strong financial position, and we will continue to invest in organic growth, such as the upcoming central warehouse expansion, and of course, continue to acquire well-run businesses. And Ling, over to you, Kling, for summary and outlook.

Super. Thank you, Irene. The Q1 in summary, strong quarter, a little bit of help from the beginning of the quarter from the weather. We have efficiency programs, so we've had that throughout the group. As you all know, we have Plan B, Plan C, Plan D. So we have been very cost cautious and we've been very early on taking necessary grip to adjust our cost base. And now at the latest, we are focusing very much on Finland. So we are happy with the organic growth. We are happy with the result development. We're happy with the cash flow and it's also that it's throughout all the countries, that is what makes us especially happy. It's not one country doing extremely well and others not. So an outlook, the million dollar question, how does it look going forward? But we have proven, I think you can agree on, that we can both grow, but we can also improve profitability also in an uncertain market. So we are so fine-tuned and at such a low cost base and have such a strong offer. So with our financial position, our customer offer, and what we have done with our legal group, I'm convinced we are in a very, very good place going forward to whatever market conditions there will be. Very good. So handing back to you, Raff.