Bergman & Beving AB (publ)

Welcome to the Bergman Beving Q2 2026 Report Presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now I will hand the conference over to speakers CEO Magnus Söderlin and CFO Peter Schoen. Please go ahead.

Good morning everyone and welcome to our financial report for April-September 2026. My name is Magnus Söderlin, I'm the CEO and on my side here I have Peter Schoen, our CFO. Hello everyone. So let's dig into the highlight of the quarter. Startinging with the market conditions, we perceived still that the market within the construction and industry is recovering, but it's not in a kind of exponential way. It goes slowly but surely upwards. However, the summer was actually quite slow for many of our companies, but we had visible pickup in September. So overall, it was kind of an increase in the quarter, but despite a very tough start of the quarter and such. We talked about it in the previous quarter, and that's also affecting this quarter. We have still increased costs in many of our companies in terms of raw material, energy and freight. and also one quite new component in the CBAM that is affecting some of our companies. It's not cost that is cash out, but we have made reservation for the expected cost in the CBAM area in the coming future. However, we have been able to compensate for the cost increases both in terms of the CBAM and other costs. So as you can see on the gross margin, we have maintained the current level such and I don't expect any impact on the gross margin going forward based on this as we have been able to compensate for the price increases. Financially, we continue to increase earnings, margins and returns, and also the earnings per share. The turnover increase for this quarter was 8%, whereas the organic growth adjusted for currency change was 0%. I'll come back to that. The adjusted EBITDA was up 9%, and we now have 27 consecutive quarters with improved profits. And we also increased the ABTA margin 0.1% units to 11.9%. And we continue to improve our working capital efficiency in combination with profit expansion. So we increased our profit over working capital with 2%. It's now 38%. And actually, this is an increase from the previous quarter. And if we look at the Q2 last year, it's an improvement of 5% units. Earnings per chair adjusted improved to $8.85 compared with $8.30 after dilution. So overall I think it was a decent quarter. Acquisition is an integrated part of our business model. This is the acquisitions, five acquisitions we made the last 12 months. We made one acquisition in the Q2 quarter, Hova Skyltar, that is an add-on acquisition to a company within the safety technology division named Kolinder, and that's part of our signage cluster. As you can see on the right slide, we continue to acquire highly profitable companies with good returns. So this is a company well above 15% profit margin and well above a profitable working capital of 45%. If we look at the fiscal year, this is the second acquisition we have done, and both of those acquisitions have been quite small companies, and both of them are add-on acquisitions. You shouldn't see this as a sign that we have lowered our ambition in terms of acquisitions. going forward is more a result that we really focus to make sure we buy high quality companies within the multiple range we have set. And so the main reason for not having more than those two acquisition is that we've not been able to close high quality deals within the multiple range that we have set. I mentioned initially we now have 27 consecutive quarters with increased EBTA and as you can see also the red line here is the EBTA margin is also going upwards and our ambition is of course to continue this path in the next coming quarters. The net sales, I briefly talked that organically it was a zero. However, all our division had an organic growth, except one of the divisions, the PPE and utilities, that actually had a decline. And I will come back to that later on in the presentation. But overall, we had an 8% growth in top line, whereas 6% was then acquisition related growth. The gross margin remains on a good level. We are now around the 50%. I communicated earlier that we had done a lot of work, as you can see, historically to increase the gross margin. It's close to 10% units since Q1 2021-22. The main reason for this improvement is that we have phased out low margin businesses in terms of low margin products, low margin customers. The majority of that work has been concluded. Acquisition has been a minor kind of contributed to the improved gross margin, even if all the companies we acquired had a profit margin of about 50%. Per definition, that doesn't imply that they actually have a gross margin of about 50% and by that helped to increase the average margin on the group level. So we're quite happy with remaining this 50% gross margin level on a group level, despite all the cost increases that our companies has been facing during the last quarters. If we look at the key kind of key target levels, we continue to improve in all these areas. The profit working capital, as mentioned, is heading for the 45, even if I'd hoped and expected the path to be a little bit more higher speed than we have. However, the rolling free figure is higher than this rolling 12 figure. So we have a positive momentum in the improvement of profit working capital. The EBIT level, we set the EBIT in absolute terms to 500 million. We are now just around 430 million, rolling 12. So we continue to aim for the 500. And also the EBIT margin is improving. We are still behind the 10%, but we are moving towards that target as well. So we haven't changed anything in the targets. So I will then hand over to Peter talking about the earnings per share and some other topics.

Thank you, Magnus. And if we look at the earnings per share, it's been a steady improvement and also in this quarter. So yeah, quite a large improvement, even though we were a bit helped by lower financial costs. So according to plan, more or less, when it comes to inventory level, We do have some organic increase in inventory levels. It's around 50 million SEK and it's mainly within companies that are starting to see a market upturn. So yeah, trying to make sure that they can take advantage of a stronger market going forward. And as you see, the ITO still are increasing. That's a good sign as well. The cash flow from operating activity was slightly above plan, so it was a very good cash flow. Next quarter will, however, be a bit slower, partly due to the increase in inventory and also some other supplier payments that we have to do. So a bit slower cash flow for the next quarter. But on the long term, it's a good cash flow situation. And the net debt increased mainly due to the dividend, of course. And we had some small acquisitions in the quarter as well. So it's now 1.6 billion. And net debt EBITDA is 2.6. So it's steady around that level. Important to say the acquisition target remains intact here as well, even though we haven't made any acquisitions this quarter, it's been more like Magnus said, it's a timing question. Yeah, good.