Beijer Ref AB (publ)

Hi, everyone. Thanks for dialing in. Krister and Joel here. So we'll start the presentation and then we'll finish up with some Q&A in the end, as always. So going straight into it, good quarter. I would say in almost all territories, all segments of the business, total growth of 12%, even including a negative currency of 3%. Organic sales increasing by 3%, pretty stable across the board. And also acquisition continues to be a nice tailwind, which of course is a strong part of the business model that we expect to continue going forward. So we'll come back a little bit to the segments and the regions later on in this presentation, but a good development here in Q3. On the margin side, very solid, I would say. Good margins also across the board in all our regions and also segments. 11.4% versus last year, 11.3%. So we continue to do very good on the margins and a nice EBITDA growth of 13%, which we're very happy with. The cash flow comes in solid. We'll go a little bit more into detail on that later. We start, of course, our seasonality Q3 to flush out accounts receivable. And then, of course, in Q4, moving into the inventory and expect an even stronger cash flow in Q4. And, of course, very proud of the EPS growth, 17%, which, of course, is very good. So we'll continue to work on that. on the the profit growth in the business all in all a little bit i would describe it a stable quarter of good profitability um so i would say in in the times we are we continue to improve the business we did add a nice acquisition in the quarter gear group uh one of the market leaders in spain and will continue to uh develop well with bayref and is focused on the private label strategy that's well developed in Bayer. So we look forward to welcoming GIA Group in our business. Okay, next slide. So looking into the different segments, we could start with our strongest segment that continues to be the OEM, which we are also very happy about. It's a natural refrigerant. It's an environmentally friendly solution that will continue to see double digit growth. uh across the board um i think if you follow us we continue to have very good success with our with our energy uh natural refrigerant heat pumps now we're also highlighting we got a first order in germany and germany is going to be a huge market over the next five to ten years so we're happy that we started to penetrate uh that market We're also launching now a CO2-based heat pump, which has a lot of interest in the commercial segment. There will be a new segment for us. So we continue to be very positive and active in the OEM segment. Also seeing a lot of interest, as I said before, in the U.S. As well, our first orders there, we're investing in expanding in the U.S. And it'll be a very big market over the next five, 10 years in the U.S. as well. So I'm happy to see the growth, happy to see the activities. And also, of course, good for the environment as you transition into these type of solutions. HVAC plus 3% continue to be stable. The last couple of quarters, a little bit higher activity this year than the last quarter, but in general, a good stable activity across the board. We'll come in a little bit later on the regions. On the refrigeration in line with last year, there's some ups and downs in this segment underlying i would say it was a little bit stronger than the zero percent but but a stable development in that segment as well so a good solid quarter and also some good signals going forward and we'll talk about that a little bit later Then moving into EMEA, I would describe it as a stable quarter, but different pictures across the region. Of course, it is a big region for us, spanning from all over Europe down to Africa. But I think also it shows the strength of the business model where you are present in so many different regions. You have some that's up and some that's down. I mean, Southern Europe has not been strong this year. It is a big market for us, but we compensate that in different parts of Europe in there. So all in all, a solid performance on the HVAC side, stable on refrigeration, and then OEM continues to grow double digits if you adjust the currency effects. And there's a lot of things happening on the OEM side and good margin development continues to be stable in the region. So despite a weak Southern Europe market, we continue to grow in EMEA. And of course, we believe that market will come back and be better next year. So all in all, we're happy with the performance in EMEA this quarter as well. If you look at APAC, I would say a good quarter growth across the board, supported by acquisition, but also good development in general, especially in our largest region, which is Australia. So looking at the market data, they will continue to take market share on the HVAC side, driving good growth. And you all know that we're working on margin improvement in that region, and you can see that continue developing according to to our plan. So we are doing very well in this region, have a good plan, good growth and good margin development. So very happy how it develops. And of course, now a market, especially in Australia and part of Southeast Asia is moving into high season. So of course, growth there on October and in Q4 is their high season. So good development in APAC and we expect that to continue going forward. Then the U.S., I would say probably one of the best performance, especially on the margin side and solid across the board, but also because we're doing so many things in the U.S. and you can see that we grew 26% in the quarter, of course, driven by acquisition, but that's a lot of part of our strategy in the U.S. on the acquisition side that will continue for us. Good margin development within heritage, the original, but also in the acquisitions. A lot of activities there that I'm extremely satisfied with. And then a lot of activities. We're opening branches. They'll be good for the future and that will accelerate next year. Good plan for that. Also starting to add refrigeration into the branches. across the U.S. and also the spare part business that we have a very strong foundation within. So a very solid quarter in the market, stable. Good start to quarter, a little bit tough in the end with the hurricane. Pretty close, closed down quite a lot of branches, more in proportion in Tennessee and Alabama for the hurricane. So all in all, I would say very solid quarter. Porter in the US with a lot of activities, also e-commerce being ramped up in the business and acquisition pipeline continues to be very, very good. So summarizing different regions, we're very happy with the development on the margin side. We'll come back to the cash flow side a little bit later on and organic growth, notching up a little bit here in Q3 versus Q2. And the market in general, stable market and some markets are stronger than others. But in general, it's a very good picture out there for us. So then moving on, you can see the sales development. uh on there uh comparing here at 12 growth compared to uh q3 last year with 42 growth um so we continue to develop well uh sequential a little bit uh higher uh a little bit headwind of course on the currency right now but in general you know a solid uh development and we look forward to moving in here now in Q4, but also in 2025 with the business model we have. So in general, a very good development. You can follow that, of course, also on the margin side. A good quarter for us, 11.4%. And we can see now, of course, that the higher level of margins that we've been running in the last couple of years is stabilizing at a good level. But that's across the board. APAC is improving. U.S. is solid despite diluted acquisition. And the mayor is holding a very good position on profitability. A nice development there over the years, and we can see that now being at a good level, and we expect that to continue as we move forward. And there you can see, of course, 13% EBITDA growth in the quarter, 11% year-to-date, so solid numbers, I would say. And then finishing off my slides for the quarter, 12% total growth, 3% organic, EBJ grown by 13%, and then also a very solid EPS growth of 17%. So all in all, I would say a good quarter in questionable times maybe out there, but of course, a business model focused on aftermarket service repair and good growth drivers everything from environmental to electrification, we feel very good about the market position. All right, Johan, I'll hand it over for some more details on the financials.

All right, thank you, Christopher, and good morning, everyone. I will jump straight to our reported EBIT of 1,033,000,000, which is 13% up versus last year. As seen in our report, we had some quite significant FX headwind on our sales. That is obviously also translating to our EBITDA, and the FX effect in EBITDA versus last year It's 26 million negative. Below EBIT, it's a pretty clean quarter again, in line with expectations. We have a financial net of 153 million and we have tax expense in the quarter of 250, which is representing an effective tax rate of 24%, slightly lower than last year. All in all, resulting in a net profit of 666 million, which is 17% up compared to last year. Moving over to EPS. EPS in the quarter amounted to 1.3 sec per share, which then again translates to a 17% increase compared to last year. And on a year-to-date basis and adjusted for the same number of shares, EPS has now turned positive and we have a growth of 3% today. Cash flow, continuous strong cash flow in Q3, 1.2 billion, supported by a seasonality driven release of working capital of 200 million. And if you look on our year to date, operating cash flow now amounts to 2.2 billion, which is 1.5 billion ahead of last year, then supported by higher EBITDA and 1.1 billion lower additional capital tied up compared to last year. On an LPM basis, we have now generated a cash flow of very close to 4 billion, which is very good. Finally, moving over to our net debt, which is 1.1 billion higher compared to Q3 last year than driven by acquisition-related activities. And our net debt in relation to EBITDA of 2.01 is stable year over year and sequentially on the back of our strong operating cash flow. By that, I hand back over to Christopher.

All right, I'll try and wrap this up. No big news in my summary slide. A solid quarter, as I said. Organic growth across all regions and segments. Nice EBJ growth with solid margins. Cash flow in line with seasonality and, as I said, should continue to increase in Q4. EPS, I think, is standing out very, very strong, plus 17%. And then we're happy to have the GIA Group joining us here in Q2 as a very nice acquisition. And if you look at the long-term growth drivers, they're still there as present and always. We see, of course, regulation in EU that will continue to drive the growth in the OEM segment. Of course, also very happy with the possibilities on the heating side with Fenergy. A lot of things happening, and as I mentioned, also moving into Germany. uh that will be a very very big market as we continue this journey in the us a lot of activities on transitioning into a2l uh for next year and i'm sure we'll have some question discussion around that plan but also co2 activity across the board from pretty much all big contractors and food retail change in the us a lot of discussions happening there and also as i said uh very maybe happy is not the word crowd strong with the us platform coming together in a very very good good way both on that plant but also that all the platform building that we're building this plane and it's flying very well as we continue to develop it so another solid quarter from the from the us team and we'll continue with our activities in the us as i went over And then also, last but not least, the acquisition pipeline continues to be active, especially in the U.S., but also across the board with add-on acquisition in APAC and also some nice opportunities continuing in Maya. So all in all, solid border and good expectations going forward. So with that, we'll hand over for Q&A. Thank you very much for listening.