Alligo AB (publ)

Good day, and thank you for standing by. Welcome to the ILLEGO Interim Report Q42026 Conference Call and Webcast. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 101 again. If you wish to ask a question via the webcast, please type them in the question box and click submit. Please also note that today's conference is being recorded. I would now like to have the conference over to your speaker, Samuel Alterborg, President and CEO. Please go ahead.

Hello everyone and welcome to the presentation of the third quarterly report of Aligo. We are just starting up here, some technical issues, so just give me a second. But the presenters for today is me, Samuel Alterborg, CEO of Aligo, and of course together with Irene Wiesenbomberlander, our CFO and Deputy CEO of the company. And the agenda for today, we're going to give a bit of a brief of Aligo, of us as a company. Then we're going to talk some highlights of the third quarter. We will give an update on some specific developments in all our countries, more or less, and also in our logistic expansion of the logistic center in Örebro. And then, of course, deep dive into the financials and a summary and outlook for rest of the year. So that's what we have in front of us. So let's start and let's start with Aligo as a company. Probably this is familiar to most of you, but still to remind ourselves, we are a leading player in workwear, personal protection, tools and supplies, and also industrial components across the Nordics. And we operate, of course, then across Norway, Sweden, Finland, We do a revenue which is just now below 10 billion SEK and very close to it. We are roughly 2,500 employees and currently we operate through 237 stores. This number has changed upwards with three stores since last time we spoke and it's our acquisitions of welding companies on the east coast in Sweden, Kalmar and Bäcksjö and even one more store added to that count. So this is us. And then to describe ourselves, we often divide us in one part that we call an integrated Nordic business. And then we also have a non-integrated business that I will come to. But this integrated business, that's of course our big concept brands of Fedol and Tools, which I hope you are familiar with. And they are built on a platform which has been developed over time. And it spans across several areas. It starts with a common store network. which is fairly the same or more or less the same across these three countries and independent of brand. And then we have added a logistic function to that which is then homogene across the countries and serves all those three countries in the same way. We have common IT systems, ERP and even a BI platform which creates a very strong transparency across the group in all types of data and how we are performing and how we are developing ourselves, which is very strong. And then, of course, we have also built own brands and own capabilities in certain product areas, which we can also then spread across this integrated platform. So a very strong base, again, has been developed over time. And I think for us now, and we will talk more about that, it's a lot about utilizing this strong platform as we move along. Sales also split across various channels to customers. Of course, the stores are strong and important. Roughly 45% of our business is channeled through the stores. The absolute majority is in the fixed stores we have. And then we are complementing ourselves with some industry-specific stores. Those are a pop-up kind of stores that you build in an area or in a certain project temporarily. to follow that project over its lifetime and then you dismantle that store when that project is finalized. But 45% relates to store and 33% relates to various digital channels. So it can be direct sales or online or web or whatever. And then of course the 22% that is non-integrated. So let's come then to that. If we are building on this strong core that we discussed and then we have complemented ourselves with a set of companies in different technology niches. And we spoke already last time that this is a mix that I really like to build on because we have this then strong core with a strong product assortment, with a strong customer base. And then we complement ourselves with these niches somewhere in the periphery of the strong core. And what I mean then is that from a product perspective, it partly overlaps with the core, but the niches also add uniqueness, expertise and depth, of course, in those type of products. And also from a customer perspective, we partly overlap with slightly the same customer base. But again, these niche companies comes with a broader customer base and of course, new customers that we can then work on in the totality of all the things we can offer. So really happy with our product media niche, with our welding companies, with our battery capabilities, and then we have a few others as well, which are also performing strongly. And again, I think this is a strong base to complement the integrated business with these niches and to find synergies across, especially on the commercial side. We are doing that more and more and will gradually, of course, develop how we work as a whole company, the integrated and non-integrated together. But that's the way to describe who we are. And then just to finish off, we have developed ourselves with these acquisitions over time. And I think in the past five, six years, we have acquired companies to the value of 1.7 billion SEK in terms of revenue. It, of course, goes a bit up and down. That's the story when you work with M&A. So we have always had a pipeline. We try to develop ourselves and we want to find good companies of strong quality that really complement ourselves well. And of course, sometimes several of those comes in and then it can take some time before the next kind of batch comes in. So it's a bit of a catch-up kind of effect thing to do. But over time, I think we have developed ourselves nicely then through acquisitions as a complement to the strong core business. Yes. That's a short reminder of who Aligo is and how we are developing broadly. So let's come in then to the third quarter and let's talk some highlights of what has been happening here for the last couple of months. Starting with macroeconomics, obviously a factor we all need to consider and the recent year political uncertainty, we are aware of that. But the kind of effects of that is still the same as we have said before, which is very limited if you talk about direct impact. And of course, we live in the same financial climate as everyone else, and that is probably to a certain extent impacted by these geopolitics. But there is nothing in addition to that, so to say, impacting or in any way harming or disturbing for Aligo. And I think we are strong in mitigating and managing effects coming out of this uncertainty that is out there. Then, of course, we can also talk about industrial activity. We will come a bit more to the market and what's happening there. But we still see a mixed picture and overall a quite cautious market in our core countries. In Sweden obviously we've had growth for some time but we still see the market being a bit cautious or slow. We also in the third quarter had a little bit of negatives from a weaker seasonal demand. And then on the other side we also see upsides in various industry niches in some areas of the country. So it's a bit scattered, but overall slow. And the same more or less goes for Norway. It's a bit more evident there that oil and gas have been a fantastic market for many years. And we have talked about the projects that have been a strong business for us, which is good. But of course, naturally, such projects also phases out over time. We still see a potential, so to say, in the market and that good things are happening. Equally to Sweden, it's still on the slow side from what we want, of course, and what we aspire for the future.

And then comes Finland.