Addnode Group AB (publ)

Welcome to the Adnode Group Q1 2025 presentation. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the CEO Johan Andersen and CFO Christina Elfstrom-McIntosh. Please go ahead.

Hello everyone and welcome to the presentation of the Adnall Group Q1 report for 2025. I'm CEO Johan Andersson and with me I have also the CFO Kristina Elström-McIntosh. The agenda for today's meeting is that we will go through the interim report for Q1 2025 in some in-depth details. We will end up with a Q&A and I would also like to highlight that in the presentation we'll find an appendix with further material. So just to remind you, Adnord Group, our purpose is all about digitalization for a better society. For innovation and continuous development in close collaboration with our customers, we create digital solutions for specific needs. The software and digital solutions that we provide design buildings, infrastructure and cities, and also the products that we all use every day, like cars and all the way to life science. When things have been designed and built, it needs to be maintained with a lifecycle perspective, and the public sector has a responsibility for rules and regulations. Our digital solutions make it possible. Starting off with the business conditions, Q1. In Undergroup, we have diversified operations in several different segments with underlying structural growth. The digital solutions we deliver to architects, technical consultants, the manufacturing industry, defense industry, and the public sector in both Europe and the US has a stable demand. Looking at the different geographies, have had stable business in all geographies we operate in with the exception of the german market where market conditions continue to decline our business model with a high share of recurring revenue provides a secure foundation in times of greater uncertainty our services are also to a high degree of what we would could be labeling as recurring nature with that as a starting point i would like to hand over to our cefo christina who will guide you through the Q1 financial figures.

Thank you, Johan. Yeah, I will take you through the highlights of Q1. And we think this is a stable results quarter and also cost initiatives that we have made. I'm going to present a little bit more about that. But if we start from the net sales mounted in the quarter to about 1.5 billion SEK compared to 2.4 billion SEK last year, And this is as we anticipated, a decrease. It's 39% and just a decrease was minus 41%. And as we have been speaking about the last 18 months, the changes in the new transaction model within design management from Autodesk has made the change, the decrease. And if we look at the same principles that we had in Q1 last year, net sales would have amounted to 2.5 billion SEK. And that is approximately a currency-adjusted organic growth of 3%. And net sales was solid both in the US and in Europe, with the exception of Germany. And in Germany, the market conditions continue to deteriorate. And sales were considerably weaker than in the previous period, particularly in the automotive industry. And as a result thereof, the division PLM has introduced a cost adjustment program. And in the results for the Q1 this year, approximately 25 million SEK has been taken as the program cost for the program. And after the costs taken for the restructuring, EBITDA amounted to 217 million SEK compared to 253 last year. And the margin, EBITDA margin improved to 14.9% compared to 10.5 last year. And adjusted for the restructuring cost, EBITDA would have been 241 million SEK and the margin of 16.5%. And going down the information line, cash flow from operations amounted to 203 million SEK compared to 381 last year. And the major changes is mainly due to working capital. And I'm going to go through in more detail where this comes from. later on in the presentation and we also continue to do acquisition and year to date we have acquired three companies and Coggera, Railit and Pisceskog and Johan will talk more about those newly acquired companies going forward and I'll hand over to Johan to speak about that.