Bilia AB (publ)

Thank you for the introduction and welcome to BILIA's first quarter result presentation with CEO Per Ravander, CFO Kristina Fransén and I, Carl Fredrik Ewerts. We also have our Deputy CEO Stefan Nordström with us today. We're happy to present another solid result and a strong cash flow in the quarter. And the agenda, you recognize, Per will start to go through the current situation in the car industry, followed by Q1 numbers. Then Kristina will go through the financial situation and I will conclude with an outlook. So let's start, and I'll leave the word to Per and Ander.

Thank you, Carl Fredrik. And next slide, yes. There is good demand in the service business in Norway and Western Europe with good booking times. In Sweden, we have seen a little bit weaker demand, especially in body and pensions. But now we are in the middle of the important tire season, and we have much better booking times. The fleet business has still a stable demand for new cars in Sweden with the market share around 60%. Many brands started in the end of last year, strong campaigns, big discounts and attractive private leasing offers. In quarter one, the demand and the order intake from private consumers has been much better. In Norway, we see and feel signs of a better business climate. The consumer index, you can say the household's confidence is on a better level, but in April, it drops again. The demand for new cars is growing, good booking times in workshops, and our brands have more, well, 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. In the same time we see lower prices of fully electrical used cars and it takes longer times to sell them. The stock of used cars is on a good level in all our countries. There has been A lot of discussion of different business models. Four or five years ago, it was really popular to test subscription, car sharing, agency model. One example is Lincoln Co. They only sold the cars through a subscription model. Now they are going over to traditional wholesale model. We have now an agreement for the Lincoln Co. in five of our locations and start to sell them in quarter two. Still, we see agency models from some manufacturers, but the feeling is more that we are going back to what we had in the past. Some manufacturers hesitating and pushed the introduction of agency model into the future. Next slide, please. Net turnover increased organically by 1%, explained by higher deliveries of new used cars and growth in the service business. We reported a result of 344 million with a margin of 3.5%. We had better earnings in the service business with a higher margin. We had lower profitability for new cars, especially in Sweden and Norway. Next, please. On this waterfall chart, you can see the different business areas. All the earnings improvement is coming from the service business and less result both new and used cars. Next slide. On this slide, you can see the quarter one profitability from 2019 to 2025 in each country. And in the middle, we have Norway and there you can see some improvements. On the right hand side, you can see Western Europe delivering at a really strong level. Sweden deliver lower earnings due to the car business. Next, please. We are moving over to the important service business. As I mentioned, there is a still stable demand in the service business in all countries, except body and paint shops in Sweden. We have a an organic growth for the group of 5% in the quarter, in Norway as much as 16%. We report a profitability of 310 million. It is 81% of the group earnings. We improved the margin from 11.9% last year to 12.2% this year. As you can see on the right hand side, it's 29 million better than last year. There are several reasons why we report a higher result. One is good booking times, especially in Norway and Western Europe. Another much better efficiency and solid improvements in the Norwegian workshops. And this higher result comes despite one working day less in Sweden and Western Europe for the quarter. Next, please. Deliveries of new and used cars adjusted for acquired operations were 2% higher for new cars and 8% higher for used cars compared to 2021 last year. For the car business, we reported a result of 57 million compared to 76 million last year. And the profitability for new cars in Sweden and Norway were on a low and negative level. The main explanation for that is lower gross profit margin and less bonus from the different manufacturers. For used cars, we report a profitability of 55 million compared to 69 million last year. In a historical perspective, it's a good level. As I mentioned in the beginning, the stock of used car is on a good level in all our countries. We started in the beginning of this year some campaigns, so we have reused the stock of used cars in the quarter, especially in Sweden and Norway. In historical perspective, we are now in the strong period for used cars. Our customers are more active and often change used cars in the spring. The order intake of new cars, adjusted for acquired and divested operations, were 31% higher compared to last year. As I mentioned, we have seen a little bit better activities in all our countries. We have in the quarter increased the backlog of new cars with 3,000 units since the end of quarter four. Now we have a more normalized level with a little bit over 14,000 new cars and it's the same level as quarter one last year. Go over to Kristina.

Thank you, Per. So some words about our financial position. During the quarter, we had continued to have a high focus on cash flow, and we generated an operating cash flow of around 450 million kronor, which is equal to some 1.6 billion kronor on a 12-month rolling basis, which means that we are basically in line with last year's generated cash flow. Per just mentioned that we, as of December 2024, consider the inventory of used cars to be on a high level. So during the first quarter, we have decreased our inventory of used cars and we do now consider the inventory to be on good levels in all our countries. So that we are very pleased with. During this quarter, we have also made the fourth and final payment of last year's dividend of 660 kronor per share. That means that we have made a payment of 165 kronor per share or some 150 million kronor. We have also acquired a new BMW operation in Varberg in Sweden for a payment of some 60 million kronors. Our net debt excluding IFRS 16 debts are at the end of the quarter amounting to just below 2.8 billion kronor, which was some 120 million kronor below our net debt as per December 2024. Our ratio of net debt in relation to EBITDA excluding IFRS 16 was 1.4 times which is unchanged compared to December 2024. And therefore, we are also in line with our financial targets to have a ratio below 2.0 times. During this quarter, we did issue a new bond amounting to 800 million kronor with a maturity term of five years. This bond was raised to refinance our bond loan of 500 million kronor, which is maturing in October this year. But we will also use it for general corporate purposes, which includes day to day business, but also acquisition and investments for continued growth for the future. After the new bond issue, we did utilize some 860 million kronor of our total credit facilities with the banks amounting to 2.3 billion kronor. And then finally this afternoon we will arrange our annual general meeting and one of the agenda points for that meeting is to decide about the proposed dividend for 2024 amounting to 5.60 kr per share to be paid in four installments. So I think that was some words about our financial position and with that I will leave the word to you Carl Fredrik.