Beijer Ref AB (publ)

We went through double digits in the quarter. SM Frigo, very good order. Backlog continued to be active, strong, especially in EMEA. Got our first or continue to get orders in the US. We continue to build the organization in the US. So very interesting for the future. and a little bit weaker in the APAC region, especially in the food retail, but still some nice opportunities also in Asia that we addressed on the OEM. So continue to be positive on the green OEMs, continue to grow double digits as we go forward. Moving on to the next slide, focusing in a little bit on EMEA. Good quarter in EMEA, 17% growth, stable on the organic side. We continue to do well here on acquisitions, good growth in Eastern Europe, and also seeing a good trend there in June and July across, I would say, all regions in EMEA. So very happy to see some higher activity levels on there. OEM, as we said, on the SEM Freedom Fender, continue to do well in the business. Record margins in the quarter driven by good strategic initiatives on the private label side, but also on purchasing. So we continue. I mean, EMEA had, I would say, a fantastic quarter here in Q2 and started well here in Q3 as well. So happy with our largest region here. Moving on to APAC. APEC, of course, now is a little bit in off season. It's a smaller quarter on there, fairly stable across the board. Some nice winds on natural refrigerant in South Korea. Also working on some bigger projects around in Southeast Asia. That looks very promising. Slow market on the OM side in Australia and New Zealand. Less investment from the food retail. Good backlog, but a little bit slower to move forward. So generally a stable quarter in APEC after having very good organic growth the last couple of quarters in high season. And the other thing we continue to work a lot with in the region is our margin. And you can see a nice continued margin development and moving for the year above those 10 that's been the target for a couple years so all in all a stable quarter but very good on the on the profit side and then moving on to uh north america a lot of things happening in north america maybe start off a little bit with a transition as some of you know that we are transitioning into a new solution based on more Lower GWP refrigerants, 454B on there. So in the quarter here, I think we're about 30 to 40% transition, and we expect to be 100% transition by the end of Q3. So I would say things developing well in that transition. For us, we had some issues with, and I think the whole industry, with missing refrigerant that has hold us back a little bit in Q2. And we also had some worse weather this year compared to last year. So we had a good momentum coming out of June and started in July. So it'd be an interesting quarter for us. We continue to open branches. We also launched our private label Sinclair in the market with very good response. So it'd be very interesting to follow that here as we go through Q3. And also on the M&A pipeline, we'll have a more back end back end heavy year here but there's a good pipeline and i would say it's actually increasing for uh for the future here so also be very interesting to see as we run through the year next year on the platform in the us so things continue to develop stable but with a lot of good opportunities going forward it's also happy with the development in the us So moving on to the next slide, you can see here we continue to grow, of course, turning a negative here on especially the currency underlying with 12% up here in Q2. Stable on the organic side, as I said, we missed the days. I would say it's similar level as Q1, but with some positive development in June and July. So hopefully that transition into a good second half of the year on the sales growth. Moving on to the record margins, as we said, it's more of a nice result on 2% organic growth and continue to expand the margin shows the strength in the business model and also the work we do as you Don't get anything for free in this type of environment. So I would say this is what I'm mostly proud of in the quarter, the margin side and development there that shows that we're, of course, on the right path in everything we do. So summering the quarter, sales goes to 5% despite the 6% currency. Organic growth around 2%. EBITDA growth eight and still despite currency double digit EPS growth. So I would say a strong Q2 and a good first half of the year with some uncertainty in the markets, but also some good trends in June and July for us. So we look forward to the second half of the year. And also Q3 is a big quarter for us starting here in July. So we'll continue to drive the business forward. So on that, I will hand over to Joel to get down into some of the details.

Not so much details, but lower in the P&L anyhow. So thank you, Christopher, and good morning, everyone. On the EBIT side, I mean, we already touched on EBITDA and all the rest of it, but good growth, 8% compared to last year. if you come to our financial net it continues to develop well both sequentially and against last year and came in 12 million below last year and there is obviously a nice tailwind for us on lower base rates here being slightly more than one percent down compared to last year in the quarter On the tax expense side, 264 million representing a effective tax rate of 25% in the quarter, slightly up from last year. But all in all, resulting in net profit of 793 million, which is up 9% compared to last year. So moving on to our EPS growth. EPS in the quarter as you have seen 1.56, translated 10% increase. I mean all in all of course we are very happy with the quarter and development on the margin side. on the interest net and so on. So very happy with the 10% growth here despite the currency headwinds. And if you look at it year to date, we are at an EPS growth of 13%. Cash flow side, we continue to deliver a solid operational cash flow in Q2, 635 million, despite the seasonal buildup of network and capital that we're having. I would say it's in line with our expectations. Cash flow in the quarter was almost 300 million higher than last year and it's the main difference here is lower networking capital tied up compared to last year which is primarily driven by our continued efforts to optimize our inventories. On the next slide here, you see our positive trend on operational cash flow. We are year to date, our cash flow amounts to 1.1 billion, which is up from 900 million last year. And as we said here before, I mean, we are coming in here in Q3 and Q4 are the bigger cash flow quarters for Bayer FSA Group. On the leverage side, very stable development, net debt to EBITDA excluding lease and pensions came in at 1.9, sequentially stable and 0.2x lower than a year ago on higher EBITDA. So all in all, we feel a really strong balance sheet, especially now we're coming into H2, which I just said is the major cash flow quarters for us. So we're really looking strong here for our future M&A pipeline and so on. So with that, I hand over back to Christopher for a summary.

Thanks, Johan. So a short summary of of the quarter and then a little bit on the long-term fundamentals that hasn't changed. But as we said, good double digit growth with 2% organic, good development in the acquisitions on here in our high season. So as we said in Q1, This is one of our most important quarters of the year, and I think it was a very good execution out there. EBITDA growth 15% and record margins across the board, I would say, and very good development, both, I would say, in EMEA and the US and APAC on the margin side. Also on the cash flow, positive for being a second quarter and now eight quarters in a row with positive cash flow and also expect know a good trend here in the third and fourth quarter and then a double-digit eps growth uh this quarter as well so based on that long term we continue to see you know transition in the us to to a 12 product we see good development of green oem in emea and we also seen in asia now more and more initiatives we're getting orders on the green solutions in the us very early days we'll continue to invest in that organization to build that up And also a lot of things happening in the US opening branches, launching private label and also on the acquisition pipeline. As I said, it'll be more back end heavy, but it looks I would say it looks stronger now than it did a quarter ago. So also very happy with that. So in general, we would summarize this as a strong quarter in uncertain times, but also with we could trends we see wrapping up the quarter and starting in here in July. So with that, we'll finish our presentation and open up for Q&A.