Beijer Ref AB (publ)

Welcome, everyone. Christopher and Joel here. Looking forward to present the full year in Q4, and of course, some questions. So I guess we'll get straight into the numbers. Thanks. So just wanted to start a little bit talking about the year as well, and then we'll dig into the quarter. But all in all, We're very happy with the year. We're highlighting here on the slide a fantastic cash flow, which we surely will come back to. But we see the improvements coming through here during the year on the things we worked on for quite some time. It's very satisfactory. And of course, on the cash flow, it puts us in a very good position. continue on the m&a activity and we'll come back to that as well also very happy about the margin very good margins throughout the year despite you know limited growth in the business we'll continue to see progress and all the initiatives we're doing on the margin side and also in a solid year three percent organic growth and of course we expect that when The markets have proved a little bit to come back at a higher level, which puts us in a very good position, I would say. It's also done the record margin 10.7%, so solid margin developed for the year. We also have 4.4 billion of cash flow, which I think is 110, 110% cash conversion. So it's very good, which puts us in a strong balance sheet with a net debt of 1.7, you know, including all acquisitions there that we announced in Q4. So I think it looks very good. And then we have finally the dividend proposal of a growth of 7% at 1.50. So all in all, I mean, we continue to grow. The model continues to develop and we see a solid 2025 behind us and look forward to moving into 2026. So then looking into a little bit on Q4, and I think it's the same story as we had all year long on the business. Remember, also Q4 is our smallest quarter of the year, and we turn into more heating and other products. It's not a massive quarter for us, but the way we see the quarter stable across the board, we do have quite some high comps in US and APEC. US growing 11%. Thank you for last year and APEC 10%. And I think in the US, especially a lot of residential project that we saw in Q4 last year that we didn't see this year, but some other good development in the US that we'll talk about. And then also we lose the trading day in the quarter in most of our big regions, which does have a negative effect. on our business. We'll come back. I think Q1, it's going to be the same amount of trading days. So that's, of course, better than minus one. And then we almost had 7% organic growth in Q4 last year. So all in all, when we look at the Q4, it came in at a stable level, similar to how we've been trading during the year on the sales side. We do have, as I said before, nice development acquisition, four in Q4, two more. announced and then a very good pipeline moving in here to 2026 and a nice rollover so very positive on on that side uh you all talk a little bit on on the restructuring program uh also every day came in uh very good underlying margin nine and a half percent so solid uh quarter and we did have 25 million of acquisition cost of the acquisition we announced that what we're working on so a very active quarter on that side, but underlying solid performance across the group and very good, especially in the US and APAC. And we'll come back to that. The cash flow I had highlighted, I think it's worth highlighting again, because we're very nice to see that the flash through and an important part of our growth journey going forward. And we talked about the acquisition. So all in all, we're happy with the development in Q4 as well. If you go in a little bit more on the product groups, I think nothing revolutionary there. Fairly stable across the board. And we did see, as we said, starting to see an uptick on the OEM side, especially driven by our green OEM, which makes us happy because that's a signal we're going to grow. Strong development in our SM Frigo refrigeration side and also a nice growth in Fenergy and also Good pipeline going forward. So also a better position, I would say, in going into 2026 and 25. So very satisfying on that. HVAC, of course, more affected in the quarter of the trading days and also in the commercial industrial refrigeration. So I think the highlight here is stable underlying business for the year and quarter and also a nice little uptick starting to show in the OEM segment. If you then move in a little bit to the segments, starting with EMEA, a lot of things happening in the quarter. But if you start on the year, 3% organic growth versus zero the year before, so slight improvement. And again, in a stable market. Of course, EMEA spans across so many regions. from Southeast, West, North, down in Africa. So you have some ups and downs. But in general, a stable year, solid on the margin, good acquisition growth, good pipeline also in the acquisition going into 26. I think worth mentioning here also there's good OEM in SDM free energy that we talked about. We, of course, have some nice project growing in Q4 and orders. in there and then uh we are i guess you're all pretty much done from the strategic consolidation according to plan um so moving nicely also integrating airwave nice acquisition for us in in the baltics that we're going to continue to to leverage in our uh strategy around uh hvac um so all in all also a stable quarter on the margin side uh the year a little bit improvement compared to to the previous year and also highlighting the very good development on the green OEM side. If you move into APAC, of course, on the margin side, one of our stars for quite some time now, and it's very satisfying to see the margin development driven by our strategic initiatives. You can see in the quarter for the year, the margins are up in a nice way, continue to drive. I don't know if you remember, but we started three or four years ago saying we want to go over the 10% for the year in APAC. And it has step by step gone in that direction. And you can see now 10.6% in 2025. So I would say better than we expected and faster. So done a fantastic job in that region. Also, you know, a strong Q4 last year, plus 10%. So we lost the trading day and came in flat. So I would say it's still a good development in the APAC region. And also of course, Q4 is one of the key quarters as you have summer in Australia and New Zealand. So a lot of good activity in that region. We do have a little bit still challenging on the OEM side. We see nice project in South Korea. And the Asian market is very promising because it's not driven by regulation. It's driven by interest to switching over to this type of solution, which also means we're building up a training center now in South Korea to further leverage on that. And we see quoting activity in Australia and New Zealand picking up. So it'll be interesting to follow this during 2026. Also, of course, did some acquisitions there, strategic, and we also announced an acquisition in new zealand that's going through the competition authorities as we speak then moving over to north america also see here we start with it with a full year a nice year i think our organic growth of three percent uh is very solid in an uncertain market in the us so extremely happy how they delivered and executed during the year. Also starting to see the improvements here on the strategic side on the work we're doing on the margin side, despite having diluting M&A and branch openings. And also signing and closing two acquisitions in Q4 with a continued very good pipeline going into 26. So it looks very, very promising on that side. We do have, if you look in Q4, minus 4%, but it's also compared to 11% growth in Q4. last year. So still a solid underlying growth and I'm sure we'll talk about it, but a lot of project, presidential projects in Q4 last year that we didn't see this year, but on the other side, stable replacement and good activity on the repair side, which is part of explaining the very nice margin development in Q4 as we make more money, but less sales dollars. So the repair side for us, and of course it's creating pent up demand, uh in the market so also uh will be nice when i start moving forward on the replacement and also the uh the project business so all in all a very solid quarter and we continue to expand our branches and have a plan to further expand that in in 2026 uh private label continue to expand and it's also a key point as we move these into our new acquisitions uh going forward so I would say all in all a very good year in an uncertain market in the U.S. and a solid Q4 with good potentials as we move here in 2026. Here's a lot of numbers over the quarters. I think it's just worth highlighting is as we move into 2026, we'll start seeing a nicer tailwind from that. From the acquisition, so we expect this to pick up as we move into 26 as well as a nice rollover plus a good pipeline here in the beginning of 26. Then on the margin side, you can see here a similar margin as the last quarter, but if you look at adjusting for the M&A, it's a nice pickup despite one minus in organic and driven by the development we set in APAC in North America. So I think it's a very solid Q4. And of course, on the last couple of years, you can see the development on the margin side. So wrapping that up before I hand over to Joel, you can see the total sales growth just for the currency, 2% in Q4, organic minus one, EBITDA plus three and four on the EPS. But I think if you look at the full year, it's very solid year. I would say 9% growth, organic three, 11% EBITDA growth and 15% EPS growth. So putting all that together, we're happy with the year. and look forward as we transition into 2026.

Johan? All right. Thank you, Christopher. Good morning, everyone. As always, I will jump into our reported EBITDA, this time excluding items of comparability, which is amounting to 758 million. which reportedly is down 6% compared to last year. However, it is very important to keep in mind here that our EBITDA excluding items effect and comparability is impacted by 25 million of acquisition costs following, as Christopher said, the high acquisition pace here in Q4. In addition, as you know, we faced a pretty significant FX headwind in Q4 of 8%. So if you look at this on a currency neutral basis and also adjusting for the M&A costs or underlying, Q4 EBITDA is actually growing by 6% here in the quarter with an underlying margin of 9.5%. Our financial net continues to develop very well. It's another benefit of our strong cash flow generation and financial net came in at 106 million, which is 24 million below last year. And if you exclude currency effects and so on, I would say that the underlying interest costs remain around 35 million lower in the quarter compared to last year. Tax expenses excluding items affecting comparability of 151, which is an effective tax rate of 25%, slightly below last year. All in all, Q4 report net profit excluding items affecting comparability of 445 million, down 3% versus last year. But then again, adjusting for the FX translation headwind, the net profit is up 4%. Moving over to our EPS. EPS in the quarter of 0.87 reported down 2% compared to last year. But as already mentioned, on a currency neutral basis, it's an increase of 4%. And for the full year, reported plus 10, which is a good number despite the tough currency headwind. And if you adjust for that, our EPS grew by 15% during 2025. Moving over to cash flow, we continue to develop a very strong cash flow in Q4, 1.7 billion. Cash flow this year is around 400 million higher than last year, and the absolute majority of that is driven by lower working capital tied up as a result of our inventory and capital efficiency programs across the group. And for a full year, we print a record of 4.4 billion SEK, which is driven by the same development in inventory and capital efficiency in general. so over to the next slide i i don't have that many more comments on this slide i would say i think it's a great visualization of the path we're on in terms of cash cash generation and capital efficiency so a very nice development here for the last couple of years Moving over to leverage. Thanks to this strong cash flow, of course, our net debt measured against the EBITDA, excluding leasing and pension, is stable in the quarter despite the high M&A activity. And we end the year at 1.7, which is leaving us with a very strong balance sheet to continue to execute on our fantastic M&A pipeline. So with that, hand over back to Christopher.

All right, let's try and summarize this. Nothing new on this slide. I think it's somewhere in 25 with a stable growth, 9% with acquisition, good EVTA development, 11% growth, and also a record margin for us, despite not being strong markets out there. So I think that's also a sentiment to what we're doing. Cash flow gives us a nice, nice firepower as well moving into 26. And you can hear we're fairly, I guess, very positive on how we're going to use this money in 26 to continue to improve the business model. It goes hand in hand with the balance sheet. I think also if you We'll get the EPS growth in a year very solid, and even if you adjust for your currency, plus 15%, which I think is a nice development for the year. Seven-year acquisition integrated into the business and also set a good rollover moving into 26. So then summarizing Q4, I think we went through all of this. To be honest, I'll move more into a little bit how we see the general market out there and some updates. We are pretty much, well, we are down with our A2L transition in the portfolio in the US. That's business as usual now in there. We also believe that, or we see that our platform continues to develop in the US, both on opening new branches, launching private label, building the acquisition platform and capabilities is around there. So we're very happy with the trend there. And of course, also some uncertainty in the market, as you can see, if you follow the OEMs and other things. But I think we perform extremely well in these times. And of course, as the market picks up again, it'll be very strong development from our side. We talked about pipeline. in there that also looks very good in the U.S. and also in EMEA for 2026. I think one caveat I had, I just want to share here and I'm sure we'll get it on the Q&A, is I don't know how closely you follow some of us for the business, but knowing in the U.S., we have 120 branches that continues to grow. But we were completely shut down for two days with this winter storm running through with snow and ice down in Alabama and Tennessee as well. So we lost two full days of business. And we also have to continue to have branches shut down because of power outages in the business and also you have a lot of things to clean up. So we expect in January, we might lose three to four days of sales because of this. Hopefully we'll see it pick up as we move into the rest of the quarter. But right now, at least you should think about three to four days of shut time because of that. And I'm sure I get more questions and I can develop it. So with that, we would like to open up for Q&A. Thank you for listening in on the presentation.