Bilia AB (publ)

Thank you for the introduction and welcome all to BILIA's first quarter results presentation with CEO Per Havander, CFO Christina Fransén and I, Carl Fredrik Jeves. In addition to releasing our Q1 report today, we're also holding our annual general meeting this afternoon, and therefore we have the pleasure of having both our Jeopardy CEO Stefan Nordström and our managing director of our Norwegian operation, Frode Hebnes. joining us today for the Q&A session. We're happy to present a good result and a solid financial position. And here is our agenda. Per will start with the current situation in the industry, followed by Q1 numbers. Then Kristina will go through the financial situation and I will conclude with our outlook. So by that, I leave the word to our CEO, Per Havande.

Thank you, Carl Fredrik. The quarter started with low demand of new cars in Sweden, but improved later in the quarter. We also saw signs of better interest in new cars from private customers. In Norway, we had a strong finish in quarter four due to the changes of the tax situation. January and February this year had a weak order intake of new cars, while March was much better. In Western Europe, the demand remained stable throughout the quarter. Currently, many of our brands have strong campaigns, big discounts and attractive private leasing offers in all our countries. The demand for used car in our countries was slow in the beginning of the quarter. But we saw signs in March of slightly better activity. Prices for used electrical cars have stabilized on a slightly lower level, and therefore we saw better demand in Sweden for fully electrical used cars. As I have mentioned in the last two reports, the Swedish government terminated all incentives for electrical vehicles approximately three years ago, and we expected a huge number of incoming used electrical vehicles in quarter four and quarter one. Now we have passed the peak and we can conclude we have handled the situation in a good way. In Bilja, the stock of used car is on a good and balanced level in our countries. When it comes to the service business, this quarter is similar to the previous quarter. There was a good and strong demand in the service business in Norway and Western Europe. with good booking times. In Sweden, we saw slightly weaker activities with 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 2025 was almost 20% lower compared to an average market the last 10 years. During this period, there has been a shift in the car population to more older cars. Next slide, please. Net turnover was somewhat lower compared to last year. We reported a result of 382 million with a margin of 4% compared to 344 million last year. We had higher profitability in Sweden and Norway. In Western Europe, touched lower results related to the service business, but still a good margin of 6.1%. The main reason for the high results in Sweden relates to the service business and for Norway, the new car business. Earnings per share were 2.11 crowns compared to 1.61 last year. Next slide please. On this slide, you can see the quarter one profitability from 2020 to 2026 in each country. On the left hand side, you can see the strong performance in Sweden. And on the right hand side, you can see Western Europe still on a very strong level. In the middle, you can see Norway performing better since a couple of years ago. Next slide, please. On this waterfall chart, you can see the different business areas. We improved the earnings in the service business and within the new car business. I would also like to mention the improvement in the fuel business, which relates to quick change in the oil price during the period. Next slide, please. We are moving over to the important service business. Our service business represented 79% of the earnings in the quarter and we improved the result and the margin. This was the best quarter one ever in the history. We reported a result of 328 million compared to 310 million in the same period last year, and the margin increased from 12.2% to 12.4%. The main reason for this is Sweden, with an improvement of profitability and with a high margin of 14.2%. We also had a positive organic growth in the group driven by Norway. There were some same number of working days in all our countries during the quarter. There are several reasons why we report a higher result. One is higher efficiency. Another is more deliveries of new cars. And the third is better performance for our tire and wheel storage operation. Next one. The order intake of new cars adjusted for acquired and divested operations was 14% higher compared to Q1 last year. As I mentioned, we have seen a slightly better activity in all our countries, especially towards the end of the quarter. For the car business, we reported a result of 65 million compared to 57 last year. The profitability for cars was related mainly to Western Europe, and Norway had the best improvement in the quarter. For used cars, we report earnings of 38 million compared to 55 million last year. As I mentioned in the beginning, the stock of used cars is on a good and balanced level in all our countries. The reason for the lower earnings was due to lower deliveries of used cars during the quarter. Prices of fully electric cars have stabilized and we could see an increased demand going forward. We have increased our underlying backlog on new cars by approximately 3,000 units. And today we have 17,500. This is a historic perspective in a high level. As we mentioned in quarter four, some of our brands have launched interesting new electrical models with long range, attracting lots of interest from our customers. Just be nice.

Thank you, Per. So during the quarter, we reported a lower than normal operating cash flow of 20 million kronor. This lower cash flow was explained by an increase in inventory of new cars and an increase of trade receivables compared to year-end. We consider this increase to be a normal fluctuation in working capital for our businesses and expect that operational cash flow for the coming quarters will be on a normalized level again. Looking at the past six months, the operating cash flow was in line with last year, amounting to just below 700 million kronor compared to around 750 million kronor last year. As said in previous quarters, cash flow is a key focus area for us and will continue to be so for the future as well. In November last year, the board of directors took a decision to repurchase own shares to a maximum of 1,250,000 shares at the maximum value of 150 million kronor. During this first quarter, around 470,000 shares at the value of 59 million kroner has been repurchased. For the program in total, we have reached 917,500 shares at the total value of 106 million kroners, which equals around 126 kroner per shares. And with that, we are also concluding the program, which ends before the annual January meeting. At the end of this quarter, we utilized around 1 billion kronor of our credit facilities, which in total amounts to 2.3 billion kronor. Our financial net amounted to 78 million kronor, which was 22 million kronor lower compared to last year. This improvement related to lower interest expenses attributable to interest bearing debt. At the end of the quarter, our net debt, excluding IFRS 16, amounted to just below 2.6 billion kronor, which was some 300 million kronor above our net debt at the end of last year. This increase relates to the increase in inventory of new cars and trade receivable, as I talked about earlier. Still, our ratio of net debt in relation to EBITDA, excluding IFRS 16, was 1.4 times compared to 1.3 times at December 2025. Consequently, that means that we are well in line with our financial target to have a ratio not exceeding 2.0 times. And we do have a stable financial position at the end of the quarter and going forward. During this quarter, we have made the fourth and last payment in relation to the dividend for 2025, which was 5.60 kr per share. The dividend has been paid in four installments, where the final fourth installment was made in January. In this afternoon, we will, as Carl Fredrik mentioned in the beginning, have the annual general meeting for BEAB. The financial target for the group is to distribute at least 50% of the earnings per share to the shareholders. And the proposal from our board of directors to the annual general meeting is to have a dividend of 6 kronor per share. for 2026, that is an increase with 7% compared to the dividend proposed paid for last year. And the proposed dividend comprised of 73% of the earnings per share for 2025. And likewise last year, its proposal is that it should be paid in full installment for the last day. So let's see what the decision will be from the annual general meeting in the afternoon. So I believe that summarizes our financial position. And I will leave the word to you then, Carl Fredrik.