Beijer Alma AB (publ)

Good morning, everybody, to this. I'm actually in the archipelago of Sweden. The sun is shining and it's 25 degrees in there. The first picture you see now is just a mention. It's actually from Finlamex, one of our companies in the Arctic, which manufactures windows, the front window for buses. and that's one of the businesses that are performing very well and we actually at this moment expanding the factory because the demand is higher in our capacity so now you can see it's myself and Peter Forslund CFO who will run this presentation good morning everybody And if you look at this quarter, I think we are rather satisfied with it, and we have managed to improve the profitability at some points. If we go to the two business areas, we actually only have two business areas at this moment. So Le Sjöfors has a mixed demand, and what we can see is the Nordic market is weak, where we have all type of customers in all industries. So that's a weaker market compared to one year ago. The same goes for the United States also, where the market is much weaker, and I guess it's depending on the industrial situation we have at this moment in the United States. On the other hand, for us, Asia is performing better, and Europe is growing. And so the mix ends up in a positive development for the group. As we mentioned earlier, we have one acquisition done a few years ago, that we are struggling with, that we have improved profitability, but still we have our ongoing program to make that up to our standard. And we announced earlier the cost that we'll take for that in the second, third quarter. We also have reduced staff people in Lykkefors to have a more decentralized organization where the local MDs are taking higher responsibility and also are allowed to do that. And that's a trend we have started now. And I think there will come some further steps down the line. Baytech is a smaller business area we have with a very like a normal serial acquire as overall stable demand but we have of course variations between different companies and if we look at the Nordic and they are only working in the Nordic area so Norway is the strongest demand the weakest in Finland then we have Sweden Denmark in between We had organic growth in the quarter, but especially also we had a very nice growth from the Smeva mass acquisition we did in Q1, who has performed actually better than expectations. In the quarter, we announced earlier actually the first April we acquired a company in India and we own 51% of the shareholders and the former owner owns 49% and we have programmed them to buy him out in some years. And then we made a small acquisitions in Baytech in Rikon in Denmark. And if we looked at on the group level, so the order bookings increased by 10%. and revenue by 7%, where organically was 3% for the revenue and for the bookings was 5%. And that's, I think, in the circumstances we have in the world today, that's very good figures. Our adjusted operating profit EBITDA increased to 305 million, and that's an operating margin of 15.1% on a group level. As you can see, 65% of the turnover comes from Leche Forge and 35% from Bayer Tech. But the trends are at this moment pointing a little bit upwards. If you look specifically at Leche Forge Q2, order bookings increased by 6%, where everything was actually organically. and net revenue by 4%. And as you know, we have different types of businesses here. We have something called Chassis Springs, which is to the aftermarket for cars. And that was around the same level as last year. And the winter was rather mild. So that means if it's a tough winter, then we have more sales of Chassis Springs. And if it's a soft winter, we have less sales. Industry increased by 5%. As I mentioned earlier, that was mainly Europe and Asia. And we increased the adjusted EBITDA to 234 million Swedish crowns. Biotech organically was 2% and this when you look at bookings I mean we have very different companies in there some of them are more machine or product oriented and orders comes in one quarter maybe not the next quarter and so forth so it varies but still on the positive side and we think that the outlook mentioned from the business area manager he was he is very satisfied how it looks for the coming quarter and the operating profit increased to 83 million compared to 73 million the year before As you can see, we have three different business areas here, different types of companies. And the growth you see, especially in industrial products, comes from the acquisition of Svemas. I should mention here that we are actually four of the companies with manufacturing in BayerTech just now are increasing their production capacity by making investments because their demand is higher than they can meet. And that's also very positive for the future. If we look at the financials, we had changes at 7.3% operating profit plus 13.3%. And the EBITDA margin is now 15.1%. And we are aiming to increase this by more focus on profitability and organic growth. So I hope we can see this trend for the future. And the EBIT margin was 14% also up from 30.2. Cash flow, about the same level as last year. Will you mention anything about the cash flow, Peter, where it comes from?

No, I think it's fine. I think it's in line with what we expected.

Equity ratio is 44% and that's on the safe side. And we have net debt to EBITDA is 2.1 times. Of course, the reason is now compared to last year is acquisitions we've done, but also the dividend that we do every year. Earnings per share dropped, but that's depending on the reserves we have made for future costs in the Alcomex case and the Turkish business. Acquisitions in the period. was what I said earlier, India. We acquired the first step into India and we think that's a future market. Now to be cautious, we have an arrangement where the former owner still keeps 49% so we can in a few years now learn how the business works. before we go into more than 51% ownership. I think that's wise because there is quite different culture in the Indian market. But long term, I think it's a very interesting area to be in because we see that more and more production are moving now from China to India. And that's just the beginning of the future, I expect. In May, Baytech made an acquisition, Recon OS. It's a mining company that also adds to the Baytech business. So this is just to show you the acquisitions we've done over the years. And I must say it's a number of them are very nice companies with exports around the world. And some are working more in the But I think this by keeping the companies very self-sufficient, running their own business, that's the way to have success when you are an owner of a company. And while the conclusion is organic growth, mixed demand over the world, and we have improved profitability, and I expect that we'll continue. Stable demand. We have made two acquisitions. And even though our focus is on margin and organic growth, we will do acquisitions in the coming future as well. By this short presentation, I open up for questions.