Balco Group AB

Hello and welcome to today's presentation with Balkan Group, who will present their report for the third quarter of 2026. Today we have Johan Dyberg, Acting CEO, and Viktor Arvidsson, CFO. We have a Q&A after the presentation, and if you call in and would like to ask a question, please press star 9 to raise your hand, and star 6 to unmute yourself. You can also type in your questions using the form to the right of the broadcast. And with that said, I hand it over to you guys, and I'll be back when it's time for the Q&A. The floor is yours.

Thank you, so welcome everybody to our report, reporting of the Q3 period and also Balko Group up to today's date. Thank you for taking your time and for those who haven't been with us before, very briefly, Balko was founded in 1987. We have our head office in Växjö and we operate mainly in two segments, renovation and new build within balconies. I think without going into all those details that you probably know about, I can say that we have a very strong position with the board offering throughout different entities in the Nordics, primarily in Sweden and Norway. And we really don't see any signs of that position weakening. On the contrary, actually. A contributing part to our focus on our core business, our core markets has been that we during this quarter just continued our local operations in the Netherlands and we also consolidated our operations in Sweden while we see good growth opportunities in Germany and UK as well in the maritime business as we are quite small in UK and Germany and very strong position in the maritime. So that's actually a snapshot of the Valko Group where we are right now. From that, I'd like to jump on to Q3 highlights. We feel the order intake remains satisfactory on satisfactory levels, and we do have a strong order book. So again, as I said last quarter, the market is there. That's not our challenge at this point. We are trying to find further steps we can take to decrease time between order and revenue. And we have come a little bit on that path. We have, which you can see actually in the net sales, even though it's very early to say anything, taken a big conclusion on that. What I think is important to mention here is that we do have items affecting comparisons versus last Q3 of minus 88 million SEC. where write-downs of assets are 79 of those. I also think it's very interesting and good to announce that Charlotte Madsson now has been appointed as the new CEO and she will start sometime in Q1 27. We have, as you've seen, taken extensive measures reducing We reduced our workforce with about 60 people, about 10% of our total employment rate. We have integrated TBO Haglinds in RK Teknik, and we also integrated Stora Fasad into Balco AB. And as I mentioned, discontinued our local operations in the Netherlands. And the property that was previously owned by TBO has now been sold. and we'll see that in the figures in November. I think that's mainly what I'd like to mention on the Q3 highlights. I don't know if you want to take us on, Viktor, in the results and walk us through those.

Yeah, absolutely. Thanks, Johan. Let's look at the financials for the Q3. Net sales, as mentioned, amounted to 295 million SEK versus 277, same period last year. We had an organic growth of 6% and a currency effect of 1%. The adjusted operating result, EBITDA, amounted to 1 million SEK versus 3 million last year, corresponding to an adjusted EBITDA margin of 0.5% versus 1.1 last year. The order intake, as mentioned, amounted to 220 million SEK versus 222 last year. The order backlog was 1,571,000 SEK versus 1,377,000 the year before. The adjusted earnings per share amounted to minus 0.21 SEK versus minus 0.23 last year. Earnings per share amounted to minus 3.23 SEK versus minus 0.23 last year. And the operating cash flow amounted to minus 12 million SEK this year versus 3 million last year. If we turn to our segments and looking first on the renovation segment, in the quarter the net sales was 226 million SEK versus 206 last year. That corresponds to 77% of the total net sales versus 75 last year. The order intake in the quarter amounted to 165 million SEK versus 188 last year. That corresponds to 75% of the total order intake versus 85 last year. The adjusted operating profit in the quarter amounted to 4 million SEK versus 2 last year, corresponding to adjusted operating margin of 1.7% versus 1.2 last year. The order backlog amounted to 1,109,600,000 versus 1,107,000 last year. That corresponds to 71% of the total order backlog versus 80% last year. On the New Belt segment, the net sales in the quarter was 68 million SEK versus 70 last year, corresponding to 23% of the total net sales. Order intake in the quarter amounted to 55 million SEK versus 33 last year, corresponding to 25% of total order intake. And the adjusted operating The order backlog amounted to 462 million SEK versus 269 last year. If we turn to the financial position, at the end of the quarter, our equity amounted to 668 million SEK versus 744 last year. The equity asset ratio was 43% this year versus 44 last year. The interest bearing net debt including leasing debt in relation to adjusted EBITDA amounted to 6.7 times versus 6.8 last year. And as we reported before, we have a supplementary agreement with our principal bank which entails time limited easings of our loan terms. and I hand back to you, Johan.