Bilia AB (publ)

During the questions and answers session, participants are able to ask questions by dialing pound five on their telephone keypad. Now I will hand the conference over to IR Carl Frederick-Ewits. Please go ahead.

Thank you very much for the introduction and welcome to Bilja's third quarter result presentation with CEO Per Ravander, CFO Kristina Fransén and I, Carl Fredrik Evertz. We also have our Deputy CEO Stefan Norsson with us today. We're happy to present a solid result with higher order intake for new cars, positive cash flow and a solid financial position. I will come back to the outlook in the end of this presentation. Here's our agenda. Per will start with the current situation in the industry, followed by Q3 numbers. Kristina will go through the financial situation, and I will conclude with our outlook. So let's start, and I'll leave the word to Per.

Thank you, Carl Fredrik. In Sweden, we see signs of better interest in new cars from private customers. In Norway, we see good demand from private customers driven by good campaigns and new taxations of cars from the government. In Western Europe, the demand for private customers remains stable. In the important fleet business, we see a little bit higher activity in all our countries. Most of our brands have strong campaigns, big discounts, attractive private leasing offers, and there is a high supply of cars for the manufacturers. The demand for used cars is on a good level in our countries and we see stable prices for all cars except fully electrical vehicles. At the same time, we know that in end of quarter four in Sweden, we see a lot of electrical vehicles three years old. All brands coming back from customers due to the government incentives was terminated approximately three years ago. In Bilja, the stock of used cars is on a low level in Sweden and on a balanced level in our other countries. There is a good and strong demand in the service business in Norway and Western Europe with good booking times. In Sweden, we see better activities, but still somewhat lower booking times. Part of the explanation is some years of lower new car sales and export of young used cars. The total car market in Sweden 2024 was almost 20% lower compared to an average market the last 10 years. During the last three years, there is a shift in the car population to more older cars. Net turnover was better than last year. We reported an operational earnings of 310 million Swedish crowns with a margin of 3.2% compared to 280 million last year. We had higher profitability in Sweden related to both service and car business. Our operating profit was 284 million compared to 260 million last year and included a profit of 35 million related to divested properties in Sweden. Therefore, earnings per share was 2.07 crowns per share compared to 1.15 crowns last year. On this slide, you can see the quarter three profitability from 2019 to 2025 in each country. And on the left hand side, you can see Sweden and the improvement of 28 million. In the middle, we have Norway, and there you can see some small improvements. On the right hand side, you can see Western Europe delivering slightly lower results due to underlying less new car deliveries. On this waterfall chart, you can see the different business areas. We improved earnings in the new car business and the service business, but dropped a little bit in the used car business. We are moving over to the important service business, representing 72% of the earnings. In all our countries, we see a positive organic growth with an average of 4.1%. One reason is 10% higher deliveries of new cars, impacting our delivery workshops positively. There are the same number of working days in Sweden, Norway and Luxembourg, but one day less in value. We report earnings of 233 million, which was 12 million higher than last year. There are several reasons why we report a higher result. As I mentioned, higher delivery is a new course. Another is in general better activity in our workshop. And a third is higher organic growth. The order intake of new cars adjusted for acquired and divested operation was 20% higher compared to Q3 last year. As I mentioned, we have seen a little bit better activities in all our countries, especially in September. For the car business, we reported a result of 81 million compared to 73 million last year, coming mainly from Sweden. The profitability for cars in Norway and Western Europe was on a slightly lower level. For used cars, we reported earnings of 61 million compared to 96 million last year. In a historical perspective, it's a good level. As I mentioned in the beginning, the stock of used cars is on a low level in Sweden and at the balanced level in Norway and Western Europe. The reason for the lower earnings was price pressure on used fully electrical cars. We have increased our underlying backlog of new cars in 900 units. For many different brands and models, we have really short delivery times. So by that, we think 1,500 new cars is a good level. This means we often can sell and deliver a car in the same quarter. Yes. Kristina, it's your time.