Beijer Alma AB (publ)

Good morning, everybody. And this is my third and last quarterly report in Beiralma. So next Monday, the permanent CEO, Oscar Friedel, will join us and he will take care of this company for the future. I'm glad to say this is the best report during these three quarters and probably since many years ago also, I think. In spite of that, we have not really pushed everything to be maximum. It's a very normalized result we see after this quarter. We had a healthy growth in the period, an organic growth that was very nice. The reasons are among other things, we have for instance expanded, it's four factories within Beotech that we have expanded and two of those, well actually three of those houses during this period started to deliver from the expanded production. area and that has also caused me meant that we can actually work down the backload we have from those factories that have been too long delivery times and that is why the reason one of the reasons why we have more deliveries in this quarter and also better result And demand has improved in general, but it is normal in our case. It's a volatile market depending on where in the world and in what segments we are. Lykkefors has mixed demand and we have organic growth both in sales and bookings. And what is especially good in this quarter is Chasse Springs. that has expanded dramatically, and it's mainly Germany and the UK that are the strongest markets. In industry, Asia and Europe are growing. In Sweden, we see a very stable market, but we see large customers like ABB and Volvo Trucks are reduced, but we have others growing like Hitachi and other smaller is growing. So in total, it's a stable market in the Nordic. In the US, we see a market that is down depending on some large customers we have in industry, but also that the Dexcom project, as some of you might have heard, for the medical market, according to plan now, is on a lower level. But at the same time, one of our companies in the United States has actually got more orders to the medical market. But I can foresee a more push for sales in the United States in the future. Our problems like Alcomex, we are halfway through. We have done a lot. Not everything is finished yet. But it's going according to plan. And so probably end of this year, most of the outstanding problems are solved. And we have also taken care of the problems in Turkey and reduced costs there. In Bay Tech, there is also variations, but overall a stable demand. But we see some companies, as I said, that has expanded their capacity, has really boomed in the quarter with deliveries to customers. And it's a growing organic growth in the quarter. And of course, as you've seen, there are profitability improvements. It's a combination with mixed effects, but also some specific companies. And after the quarter, we have acquired a company, Evona in Finland. And I can say we have more coming up in the future. We have a backlog of potential acquisition targets that we are working on just now. As you can see here now, the order bookings increased by 7% to 1.7 billion Swedish crowns. And net revenue by 12%, organic to 7. And the adjusted EBITDA margin was now on the good level of 15.8%. My view is there is a potential to grow that further in the coming quarters. Of our turnover, most part comes from Lykkefors, but 34% comes from Baytech. And at this moment, it's in Baytech we are acquiring businesses, but acquisitions will come later on in Lykkefors in the future. Specifically for Horses, we have the net revenue increased by 7%. I can comment there that even though this medical project in the United States, in John Evans, has slowed down according to plan, but we are actually growing in other areas of the world to the medical sector. And we have a special sales resource working in that area. And they are working with customers worldwide. And Chasse Springs are doing very well. And they see optimistic on this year in general. And we have some plans eventually to also expand that business for the future. So the adjusted operating margin increased to 80%. So it's on the way to the long-term goal. In BayerTech, all the bookings increased by 18% to almost 600 million, and net revenue increased to 650 million. But as I said, we have now reduced the backlog, and that's a healthy reduction, because delivery times for a couple of the companies was far too long for our customers. So they were forced to say no to orders earlier. So now we can cope up with the demand from the market. And all are doing well, but of course, niche technologies are extremely well, and thus niche-oriented companies selling mainly outside the Swedish market that are doing very well. And regardless of the general market, they have their niches, so they're normally always performing very well. And the adjusted operating profit EBITDA increased to 84 million, and also the margin was slightly increasing in this area. I leave the financials to Peter.

Thank you, Johnny. Yeah, a brief look on the financials. I think we have gone through most of them. We present a fairly strong cash flow. That's a metric we haven't really discussed, driven by the good profitability, but also that we have a little bit positive effect from Chassis Springs, that the stock buildup has been a little bit slower in the quarter compared to last year, giving a positive cashflow effect compared to last year. Net debt are at 1.8, meaning the depositions that Jonja talking about, we should have had room to do without sort of say gearing up the debt too much. Yeah, that was all for me.

acquisition then was the Evona company, it's a niche company in Finland who is a nice size of business and it's a high margin business so it fits in very well to their tech portfolio of companies and in this industry when you win a project it's not only price it's also the connections you can get between the buyer and the seller. So it's very much up to the people from our side that meets the seller and they like the future ideas. And that is, I should say, more important than the exact price you pay. And in this case, obviously, we have been good in meeting the demands or wishes from the sellers. And as I said before, We see a lot of activity going on on the acquisition market at this moment. Then we'll see how many of these deals we can win, but I hope there will be a number of them during the coming months. If you look at the history, we have done 32 acquisitions since 2019. This year is will be a better year than last year. And I expect that this is the trend that will continue in the future. And we are going to put more efforts on acquisitions in the future. We have hired another person to work with acquisitions coming in the beginning of next year. And conclusion is Lykkefors, as we have reduced the overhead and we have clarified that the geographical area managers are really fully in charge of their businesses. And I think we have good people out there in the organization, very competent, many of them with very long experience. And they have full understanding of also how the market looks like, who is the customer, and how to take care of the customer. So I think we have a very good base now for future growth in the Leche Forge area, combined also with future acquisitions in other areas with similar products and not only springs. And Bayer Tech, as you've seen during last year, are performing better and better, and obviously have the ability to convince sellers that we are the best buyer. And in a week, Oscar Fredel will take over. And he has a very long experience of acquisitions. And with the setup where you leave them in like a compounder. So I think there are opportunities for the future development of Beira Alma is extremely good.