Beijer Alma AB (publ)

to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers, Acting President and CEO Johnny Alverson and CFO Peter Forslund. Please go ahead.

Hello, welcome everybody. My voice is a bit different today. It's not because it's dark time, it's because I have got a cold. And for those who don't know me, I can tell you, I have followed this company since the early nineties. I've been doing quite other businesses, but last year I was in here for a number of months as CEO. And we can start with the presentation. Together with me, there is Peter Forslund also, who has been in the company for about a year. Yeah. Good morning, everybody. And we will go through five different subjects. It's the highlights from Q4, financial performance, acquisitions, where we're going in the future, and Q&A. If we then go to the highlights for... But this is just in the beginning of a story that we lost for many, many years. Go to the highlights of the quarter. It's been a tough period, depending on the market circumstances around the world. Also, for us specifically, some cases. But in general, if you look at the markets, In the United States, it's been no change, more or less. It's a slow market, but it's no change, neither upwards or downwards. In Asia, for us, it's actually been a positive trend. We have good opportunities there. We have new customers coming in. And in Europe, it's also okay in in the nordic is more slow business when we talk about liquor force but in the niche businesses in bay tech it's it varies between different companies so there we see positive trends and as you see we had a growth of uh three percent organic to be between 24 and 25 in the quarter but the currency hit us hard And it probably will continue because we had still the dollar is on a very low level compared to one year ago. Then we can go to Lykkefors. And Lykkefors, as I said, is the same as Lykkefors, are the only business we have in the United States. They are on the slow side. The positive side is that we in Asia have new opportunities with new customers. And just as a small example, you might have heard of that the new chips for AI are supposed to be cooled by water. And we actually have no customer. They are supplying a small spring to the connectors to this cooling water to AI. And with the volumes there is in that area, it will be nice business for us as a nice example for new areas. On the other hand, in the United States, we have had very nice business in medical, but as we expected, that is going down now this year, and we're looking for new opportunities in the United States. In Europe, it's... It's rather same level, but for those who know us that the springs for door springs business has been reduced and our export to United States has more or less stopped. So that affects our volume, but all other businesses going about on the same level. And very nice is that our aftermarket business, the springs for aftermarket for cars, that accounts for about 20% of turnover is doing very well. And we are now back on levels before we stopped the business in Russia and before the pandemic also. So we had had a very nice development in that area. If we then go to Biotech, we did a couple of or actually two acquisitions during the quarter, one in Finland, Evona, and one in Sweden, Intercat. But there we also have niche businesses that has developed very well. And we invested in expanding factories last year, and they have now paid off. So we can see that in our invoicing and the results from those businesses where we did the investments. So it's been a very good development for Bayer Tech during last year. And with that, I give the word to Peter to talk about the financials. And you're welcome back with more questions later on.

Thank you, Johnny. Yeah, we go to the key ratios slide. So say you see here we have included capital efficiency. That's the first time we disclose numbers on capital efficiency. We will try to the annual report also to give you a breakdown on the different business areas with the divisions with Dershowitz and Bayer Tech. So we will get more depth in the knowledge over time. The board has also proposed a dividend of 4 SEK per share for the annual general meeting to make a decision on later in the spring. News there is that the payment will be divided in two installments, one in the spring and one roughly six months later. We'll come in a little bit on the background when we come to the financial slides and the cash flow slides. Yeah, we'll leave the other key ratios as is. I will give you a little bit more on the results and a little bit more on details when it comes to the development process. So overall, a stable performance in the quarter. When you look at the profitability levels, you will see a positive mix in Le Chasseurs. Chasseurs had a good development. And then we have had a little bit of shrinking business, mainly due to the currency effects within the industrial sector. But that gives a positive mix effect from the Chasseurs side. Top line in the Leche Forge industrial part is affected by the savings program that we launched back in June. So there is businesses where the profitability levels has not been where we expected that we have closed down. We have closed down a factory. We have sort of say stopped the export to US. We have closed the business line in Turkey. All of that gives a top line effect uh that you see in the report that the organic growth uh win within the support industry is a little bit more sluggish so both the market thing but also a decision that we made to stop some non-profitable businesses uh to make sure we we choose and pick what is really profitable and in the quarter if we take the us door business that's around 35 million sec that we lose in top line we expect the same level of drop also in Q1 and Q2. That business stopped in the later end of Q2 last year so the comparisons for the next two quarters will also be affected by those top line effects. We've talked quite a lot about Alcomex and it's an important part of the program that we've been running. Alcomex is Very stable development. I think it's wise to point out there is still work to do before we are where we want to be, profitability levels. The closing of the factory that we did was finalized in the back end of November, meaning there is still work to do on that front before we are happy with the profitability in Alchemix. Baytech, as Jonny mentioned, is performing on a high level. All business areas is chipping in. We saw the effect from the ramp up from the investments. The effect was a little bit stronger in the end of the quarter than we expected. We have especially Botech, which has performed very well when they have increased the capacity, even above our expectations. So it's been strong delivery from a couple of major tech companies. It's also worthwhile pointing out that even if transaction cost is a part of the business, so for comparable reasons in Q4 last year, we didn't have any transaction costs. And when you do transactions in Finland, you have also stamp taxes corrected to that. So a little bit higher transaction costs in the quarter compared to Q4 last year is also sort of say affecting that you don't really see that the improvement in the underlying performance. We also can mention a little bit in the BayTech side that from the fire safety companies that we have had a very strong end to the year. And this is mainly due to a one-time order that we've had in the quarter and delivered in the quarter. So it's a positive effect from that as well. Not something that we see every quarter, but that business in itself is strong. good I jumped one slide too many yeah so talking a little bit about cash flows we get through a fairly positive cash flow in the in the quarter I would say even strong and here you see a little bit of the reasoning on the dividend payment that we discussed earlier that the cash flow in the first quarter of the year generally is weaker due to the set up the chassis spring business when it comes to customer rebates, making the cash flow lower in Q1. And then to get a better flow of the cash over the year, then that's what we have proposed. The board has proposed an annual meeting to decide on splitting the dividend payment, one in the spring and one in October, November, somewhere. We expect the seasonal pattern to repeat in Q1 2026 when it comes to the cash flow. Looking at the capital efficiency, it's been a good improvement over the year. Driven by the growth that we have. You also see a bit of currency when it comes to translation of the item as well. The absolute number increase looks a little bit smaller than it actually is. It's affected also by currency. Coming into the financial position. A good news from the quarter is that we have a new financing in place with the three Nordic banks, putting on a multi-currency revolving credit facility and a number of term loans in relation to that. It's a three-year facility with the possibility to extend. We think that we have good conditions and high flexibility in the financing, making sure that we have the financing we need for the coming years. We are on a net FDBTL level of 1.7, meaning that we have a good amount of cash available to invest in growth and in acquisitions. So we should have the headroom that we need to reach the targets that we have set. Looking a little bit then on the full year, it was close but no cigar on reaching the 5 billion in Leisure Force. We will leave that for... For next year, it's a solid organic growth in electric Porsche over the year, around 3%. You have a currency effect. As Johnny said, we expect currency, if the rates stay at the current level, to be significant also in Q1. Then the longer the year goes on, the easier the currency comparisons will be of sort. But yeah, the dollar at nine, there is still currency effects to pass through. If you look at BayTech, we've had organic growth of around 5%. It's a strong performance from BayTech overall in the year. We've made five acquisitions, adding around 50% in revenue on that side. We've made acquisitions in all business area within BayTech. So we have a good spread on the acquisitions that we have done. Great, Johnny.