Bilia AB (publ)

Thank you for the introduction and welcome to Bilja's third quarter result presentation with CEO Paravander, CFO Kristina Franzén and I, Carl Fredrik Evertz. We also have our Deputy CEO Stefan Nordström here today. The agenda is that Paravander will start going through the current situation in the car industry, followed by Q3 numbers. Then Kristina will go through the financial situation and I will conclude with an outlook for Q4. So by that, I'll leave the word to Per Avander.

Thank you very much Carl Fredrik. And we start with the current market situation. There is a strong demand in the service business with quite long booking times. Our customers take care of the cars, both for service and repairs. And right now, we are in the important tire season. The fleet business has still a stable demand for new cars in Sweden with a market share around 60% of the total sales. The private consumers are still in wait and see, but we can see some better activities when we measure, for example, floor traffic in the showrooms. Many brands have started strong campaigns with big discounts and attractive private leasing offers. In Norway, we see signs and can feel a better business climate. The demand for new cars is growing, good booking times in workshops, and the consumer index is at a stable level. Our brands have, for the moment, strong campaigns in the Norwegian market. The demand for used cars are on a good level in Sweden and Norway, and we see stable prices for all cars, except fully electrical vehicles. The stock of used cars is at a good level in all our countries. There have been a lot of discussion regarding different business models during the last years. A few years ago, it was really popular to try car sharing, subscription and agency models. Still, we see some manufacturers using agency models, but other manufacturers hesitating adopting to this. We now see Clearly, we are going back to traditional business models we had in the past. Please go to the next slide. Net turnover increased organically by 3% explained by higher deliveries for use cost and growth in the service business. We report the result of 281 million crowns with a margin of 3.1%. We have better earnings in the service business and the used car business was at the same level as last year. We see lower profitability for new cars. On this slide, we explain the lower profitability compared to the quarter three last year. As you can see, the big red here is the difference coming from the new car business. Go to the next. On this slide, you can see the quarter three profitability between 2020 to 2024 in each country. And in the middle, we have Norway, and here you can see some improvements. On the right hand side, you can see Western Europe delivering at a stable level. Sweden delivers lower earnings due to the car business that we showed on the previous slide. We are moving to the important service business. As I mentioned, there is still good demand in the service business in all our countries, especially for body and paint jobs. We have an organic growth for the group of 6% and in Norway as much as 10%. We report the profitability of 221 million crowns. This is 74% of the group earnings. As you can see on the right hand side, it's 60 million crowns better than last year. There are several reasons why we report a higher result. One is we had a strong underlying growth and a better profitability in the Swedish body and paint shops. Another is good booking times in all our countries. And the third is we had one working day more in the quarter, except Valium, there we had two more. The car business. Deliveries of new and used cars adjusted for acquired and closed operations were 4% lower for new and 50% higher for used compared to 43 last year. For the car business, we report the result of 73 million crowns compared to 151 million crowns last year. And the profitability for new cars in all our countries were on the lower level. The main explanation for that is lower turnover. For used car, we report profitability at the same level as last year. The demand is good and we have a stable and good margin, especially in Sweden and Norway. The stock of used car is at the normal level. The ordering take on new cars adjusted for acquired and closed operations was 11% higher compared to the last year. As I mentioned, we see a little bit better activity in all our countries. The order backlog of new cars is a bit on the weak side, especially in Sweden.

Thank you, Per. So let's then move into our financial position. Starting with cash flow, which continues to be one of our focus areas, and we did during the third quarter generate an operational cash flow of 480 million kronor. Thereby, we have for the first nine months generated some 1.3 billion SEK compared to around 500 SEK last year. We will continue to work on inventory management, including the turnover rate of new and used cars. But we do also focus on other parts of working capital to be as efficient as possible in this time where financing costs are higher than in the past. During the third quarter, we have also paid out our second installment of the dividend of in total 6.6 kronor per share, which means that we have paid around 150 million kronor to our shareholders. There are two remaining installments where one has been paid in October and the last one will be paid to our shareholders in January next year. We have not made any payments for acquisitions during the third quarter, while we for the first nine months have made such payments for almost 400 million kronor in total. However, as of October the 1st, we have taken over a BMW dealer in Luxembourg, Carlos Schmitz, whereby we are now running our operations from two facilities in Luxembourg. And the payment for this acquisition was partly made in cash and partly in Belia shares. During this quarter, we have also announced that we have entered into an agreement to acquire another BMW dealer, this time in Sweden, which are operating through one facility. We do expect this acquisition to be concluded the first or the second quarter between February and May next year. and payments will to a smaller piece also be done via BDR shares. At the end of the third quarter, we utilized just below 1.3 billion SEK out of our total credit limit of 2.3 billion SEK. This credit limit was renewed during the first quarter this year and matures in March, 2029. Our financial net was 83 million SEK for the quarter, which was higher than last year, but in line with the previous quarters during the year. And the higher financial net compared to last year is due to higher interest costs. Our net debt at the end of the third quarter amounted to 2.5 billion SEK, which was 80 million kronor higher than December, but some 200 million kronor lower than at the end of June. Our target is to have a ratio for our net debt in relation to EBITDA excluding IFRS 16 below 2.0 times. Looking at this ratio at the end of the third quarter, the ratio was 1.5 times versus 1.6 times per June and 1.3 times as per December 2023. So in summary, the ratio remains on a stable level, well below our target of 2.0 time. So I think that summarized our financial position.