Balco Group AB

Hello and welcome to today's presentation with Balco Group where CEO Camilla Ekdal and CFO Viktor Arvidsson will present a report for the first quarter of 2026. After the presentation there will be a Q&A so if you're calling in and want to ask a question please press star 9 to raise your hand and then star 6 to unmute yourself when handed the word. You can also submit in questions via the form to the right and with that said I hand over the floor to you guys.

Thank you. Welcome to our quarter one report. And first of all, for our new listeners, we start with a very short snapshot of Balko Group. Balko Group consists of balcony and facade companies. The head office is in Växjö, and we have about 500 employees. We operate in two main segments, renovation and new build, and our core expertise is to supply glazed balconies and balcony solutions, primarily on the renovation market and to tenant-owned associations. Bakugroup is the market leader in the Nordics with the key markets being Sweden, Denmark, Norway and Finland. And we also have a strong challenger position on other European markets. So let us go over to the quarter one highlights. The order intake in the quarter was in line with the corresponding period last year and amounted to 270 million SEK versus 275. Here I want to point out that the order intake for Barco Group must be seen over a longer period than just a quarter, since larger projects can affect heavily in a specific quarter when we get it in. During the first quarter, we didn't book any big projects, but we have some up for discussions. The order backlog increased with 21% by the end of Q1 2026 versus 2025. We had a solid operating cash flow amounted to 32 million SEK. The net sale decreased by 5% and here we have a currency effect of minus 2% and the net sale amounted to 299 million SEK. The profitability is below our target and here especially we can see that the new bed segment had a negative result in the quarter, but also the renovation segment was affected by lower volumes in some companies and also downward revisions of contribution margins in individual projects. It's important to highlight that the project can still be profitable, but when you have late revisions in a project and you're using the percentage of completion as we are doing, there is a hit on the result in the actual period. We have taken extensive actions during 2025 on cost savings. But even though we have done so, the result is not good enough. And we are of course not satisfied with the existing profit level that we now show in this quarter. And therefore we also continue with our cost savings measures and also the structural measures. We work with it during the first quarter and we continue to work with it also onwards. So let's go over to the market update. We start with the Nordic markets and here we can see that the trend of increased activity in the renovation segment in Sweden and Norway remains. But we are concerned that the investment decisions might be affected by increased macro uncertainty. However, we know that the underlying demand for renovation still remains. We can't see a clear market recovery for the Finnish market, and that's mainly linked to that the new bid segment remains on a low level in Finland. The total order intake increased actually for Baku Group for the renovation segment, if you look on the first quarter 2026 versus 2025. The Danish market remains challenging for us. We can't see a clear market change in the market, even though also here the order intake increased. But we can't see a clear change on the market yet. If you look outside the Nordic market, we see that the potential in the UK new-build market remains substantial. We have strong competition on especially big projects in the London area where we can see some price pressure following it. But here we actually focus on other projects and also focus now outside the London area. The renovation market in Germany continues to show good underlying demand and we have a good result here that we implemented the Ricoh glazing into the market for expanding our offering for the premium brand Balco. We have taken new orders with Ricoh Glazing during the first quarter, and there are more projects under discussion. Our view of the maritime segment remains positive. The current order backlog at the shipyard indicates potential for additional orders to bulk go ahead. If you look on the new-build segment, especially here in Sweden, we have seen some smaller positive signals, but that is from a very low level. So I hand over to you, Victor, for the figures.

Thank you, Camilla. If we look at the quarter one and start with the net sales, it amounted to 299 million SEK versus 316 last year. Organic growth was minus 3% and currency effect was minus 2%. Adjusted operating result amounted to zero million SEK versus minus three last year and the year's figure corresponds to an adjusted EBITDA margin of 0.1 percent versus minus 0.9 last year. Border intake amounted to 270 million SEK versus 275 last year. The order backlog increased by 21% to 1,493,000,000 SEK versus 1,238,000,000 last year. Adjusted earnings per share amounted to 0.01 SEK versus minus 0.24 last year. Earnings per share amounted to minus 0.03 SEK versus minus 1.31 last year. And the operating cash flow amounted to 32 million SEK versus 1 million last year. And if we turn to the operating segments and start with the renovation segment, the net sales in the quarter amounted to 229 million SEK versus 236 last year, corresponding to 77% of the total net sales versus 75% last year. Order intake in the quarter amounted to 211 million SEK versus 208 last year, corresponding to 78% versus 76 last year of the total order intake. Adjusted operating result in the quarter amounted to 3 million SEK versus minus 5 last year. That corresponds to an adjusted operating margin of 1.2% versus minus 1.9 last year. The order backlog amounted to 1,048,000 SEK versus 991 last year, corresponding to 70% of the total order backlog versus 80% last year. Turning to the new build segment, net sales in the quarter amounted to 70,000,000 SEK versus 79 last year, corresponding to 23% versus 25% of total net sales last year. Water intake in the quarter amounted to 60 million SEK versus 67, corresponding to 22% versus 24% last year. Adjusted operating result in the quarter amounted to minus 2 million SEK versus 2 million last year corresponding to an adjusted operating margin of minus 3% this year versus 2.8 last year. The order backlog amounted to 445 million SEK versus 247 last year corresponding to 30% of total order backlog versus 20% last year. Look at some more financial figures. At the end of the quarter, the group's equity amounted to 738 million SEK versus 757 last year. Equity asset ratio was 44% versus 47 last year. The interest-bearing net debt, including leasing debt in relation to adjusted EBITDA, amounted to 5.5 times, down from 6.0 times in the end of last year. A reminder, in December 2025, a waiver was obtained together with an amendment to the existing credit agreement. The covenants are within this agreement. I hand back to you, Camilla.