Bonava AB (publ)

Good morning, everyone, and a very warm welcome to the first quarter of Bonava. 2026. My name is Anna Falk-Fidlund and I am head of investor relations here at Bonava, standing here in a sunny Stockholm together with our CEO Peter Wallin and our CFO Jonsson. They will take you through the highlight of this report and afterwards we will end up with a Q&A and you can start already now to type in your questions. So with that, Peter.

Thank you very much, Anna. And good morning, everyone. Looking forward to take you through the Q1 here. So if we take on the top MQ1, looking at the markets, we are recording stable sales, even though we have a lot of uncertainties kicking around in market. We are seeing the same trends as usual. We have seen for quite some time that the consumer segment is improving, and it's improving based on that we're seeing higher disposable income, maintaining a low level of unemployment and pent up demand for housing, given that we have built so few sustainable new homes over the past three years in the markets. If I dig a little bit deeper, we are seeing a very high sales across our Baltic cities that we are active in. And we are also seeing a building reservation rate in Germany. So we started up a little bit weaker in the quarter, but then ending up at the same level more or less as at the end of last year. So we see a good booking situation. And then Sweden, we are seeing an improving market conditions. And Finland remains to be a quite slowish, sluggish market. In all our markets, we are seeing increasing activity in transactions. So the investor segment is improving and we have a very nice pipeline of investor projects to come. And then we are all thinking what is happening around us in the world. And the latest part now with the conflict in Iran is not the first one in the quarter. It's one of many things that has happened. And still we are seeing an improvement across our segments. So it seems to be a quite resilient market situation despite uncertainty. If we dig into our P&L, we improved the EBIT margin to 4.8% in the quarter and the rolling 12-month 6.8%. This should, of course, be viewed across on the guidance we're giving for the full year of between 8% and 9%. We are growing net sales by 11% adjusted by currency. And we are doing that despite of implications of productions due to the cold weather that we had during the first quarter, especially in Germany. And that is actually accounting for as much in growth. So around 200 million second impact of revenue. We have increased ongoing projects to 4,220, which is more or less a 30% increase over last year, and at a very good stable sales rate at 60%. And we only report binding agreements on the sales side. So in addition to that, we also have reservations. Looking into the balance sheet, we still have a very solid financial position. We are decreasing the central debt and we are increasing project-related debt. So according to plan, the boring statement according to plan. Taking a little bit look around our core markets now, looking up on the left-hand side, you see our investor project in Finland of 61 units in Turku, Solina 13. Going over to the right-hand side, we have Inlangen outside Frankfurt, a very nice project for consumers. Continuing down on the left bottom side, we also have Hartmans in Riga, a very strong market for Bonava. And last but not least, another strong market for Bonava in Lake Town in Vilnius. So with that, I would like to hand over to you, John.

Thank you, Peter. And Q1 is indeed a smaller quarter on the back of a strong Q4, and that's very traditional for Bonava. And it comes with a seasonality effect in particular in Germany, which is our biggest market. And I will come back to what it means and what you can expect in the coming quarters from that perspective. If we start with the ongoing production, as Peter said, close to 30% growth versus last year, 28% to be precise, and a stable sales rate. We have a sales rate excluding reservation, as Peter also mentioned, of 60%. And that is average in the group. But we can say that Germany and Sweden are well above 60%. Finland tracking around 50%. And then Baltic around 40%. And as I've said in previous telcos, Baltic has a specific market conditions where pre-sales is not so common. It's more like when the building is... ready, that's when the real sales of the units start. So we do expect this to continue up both sales rate and also ongoing production to reach our targets and the guidance for the full year. If we continue then with the P&L, as Peter mentioned, we have 11% organic growth in the quarter versus last year and 37% growth in EBIT in absolute numbers, including currency that was 7% in the quarter. So we, of course, have a big Euro-SEC effect as most of our sales is in Euro and only a smaller portion in SEC. But all our other markets report in Euro and that is a translation effect we adjust for. We can see that the sales and admin expenses partly by currency, but also because we are still very cost cautious and stable sales and admin expenses. And what is most important is that the 12-month trend continues upwards now to 6.8, and it will steadily go up to this range between 8 and 9 for the full year, we estimate. And it's also important to highlight that in Bonava, we gradually built up the EBIT rate, across the year so the trend you could see on last year's quarter you can expect a similar trending also for 2026 with the buildup of the result and sales and the rolling 12 is of course on 6.8 as i mentioned which is an improvement If we deep dive into the different segments, we see that Germany and the Baltics are still the main contributors to the profit. We do expect Sweden to grow rapidly this year into good, positive numbers. And with Finland, we repeat also the message that because of a slightly weaker market, we will be cost and cash neutral. So you can expect a break-even result on EBIT also for this year in Finland. If we discuss a little bit the other, that is the group functions and also our guarantee business in Denmark. And that remains stable and on a low level. And as we grow, that will further improve the margins across the year. So we will have this volume kicker coming in as we grow net sales as expected. If we then talk about Germany and we talk about the seasonality, so there are three effects which impacts why Q1 is a little bit lower. But bear in mind, that's still an improvement versus last year. But the three effects we're talking about is the facing of the investor deals, which is traditionally in the end of the year. We have a lot of interest in investor deals. But we do expect them to close them in the later part of the year, which is more traditional in Germany to do so in our business. The second one is the sales conversions, which after a very strong Q4 in Germany, it took some time to build up the reservation rates. But we are now back on track also with the reservation trend. So we think that that will catch up now in the coming quarter. And the last effect, which Peter also mentioned, is the weather. The cold and long winter really did have an impact on the construction pace in Germany. But also here, we are back already in April, May. with the construction plan, you could say. So we are catching up with the sales in construction and the investor is coming later. So we are therefore very certain of the development in the coming quarters for Germany. There is also a high sales rate. I mentioned it's 67% of the ongoing production. So we don't have an issue with the sales speed either in Germany and an improved margin, as you can see. see in the EBIT margin versus last year as well, and they're stable on the rolling 12 of 10%. If we continue with Sweden, this is where we expect the biggest growth percentage-wise this year, and we see an improved market situation, and we gradually have an ongoing production, which is much higher than last year, 836 now in ongoing production versus the 368. That will generate in itself a good result the coming quarters, together, of course, with the high sales rate, which is around 62% adjusted for reservation. So no reservations included in those numbers. So high sales rate, high ongoing production, a lot of promising signs on the Swedish market. We should also mention Mention that in comparison with last year, there was a sale of land impacting in Q1 last year of plus 15 million, which was not repeated this year. And that is a reason why Q1 isolated looks a little bit stronger last year. But it's timing of those items which can impact. And again, we believe that Sweden will have a strong growth in the coming quarters. Finland, I mentioned, we have challenging market conditions still. Specific point out that we only start projects with good profitability and good locations with high interest. And that has proven to be successful so that we stay cost and cash neutral in a difficult market situation. We had one good investor deal in Turku during the quarter. And another thing which is worth to mention is that we have reduced the completed unsold to very low levels now in Finland. So we are ready there also when the market returns to start. We don't have a legacy of old units. And I can also mention for the full group is that we now have a completed unsold of 208, which is a further reduction versus Q4. And we expect this to continue also. So it's about starting projects, which is important in all the markets with the high sales rate we have, and that will generate the sales and profit. Baltics is a specific shout out in the quarter. As you can see, fantastic growth and really strong margins. I think that we further solidify our leading position in these three markets. We are market leader and we further solidify that position with these numbers. I think that the number of starts, number of sold and also the margins and the growth. It's fantastic. It's tremendous. We really have a unique offer there, which is attractive. And we will continue this. Also mentioned is that we, since we have a high occupancy rate in the B2M, built to manage projects, we decided to start another one now, this time in Lithuania. And the occupancy rates is above 95% and the yields are still good. on these markets. So we further explore those opportunities in the Baltic markets. If we look at the building rights, that has grown a little bit in the quarter and we continue to optimize the portfolio so that we have the right mix of on and off balance and give us optionality in timing is particularly important in this aspect so that we are ready when we need them. And right now we are ready in 26, 27 to be above this 3,500 units in the two years combined. This will be a gradual growth and we won't fully reach there in 2026, but as previously communicated, but that won't impact, it rather solidify our full year estimate of the year. And then we are ready when the market returns to recover the full If we look at the net profit, we see that the 12 month trend continue to grow versus last year. And that is not only because of the EBIT, which is stronger, but it's also because we continue to reduce the net financial items. And net financial items is this time impacted by lower net debt in combination with lower interest rates, but also a one-time item last year because we renewed the green bond last year in Q1. So there was a one-time effect distorting the picture a little bit in the quarter. But nevertheless, the long-term trend is reducing net financial items, and we expect that to continue down. If we go into the cash flow, and we previously called this operating cash flow, and now it's cash flow before financing and tax. So it's a different terminology, but the only difference is that we now adjust for the currency effect. So it gives a more true picture of the cash generation in the company. And this is also how we follow the business internally, because we follow it in local currency. So it gives a more accurate picture than before in the cash flow. But it's only the currency which has changed compared to the numbers we have shown before. And we see that this is the first quarter in a while. We actually have negative. And the reason for that is the high production we have ongoing right now, which requires, of course, working capital in the build-up phase. So there will be a need for this increased liquidity and working capital to support our ongoing projects with high sales rate. And that is fully expected. If we go into the net that Peter mentioned that we have increased it, and that is due to the high activity again on the project. So it's project finance related, very much linked to the active projects we are running. And therefore, you see this increase in the green activity. field here in particular. And we still have available liquidity of close to one billion SEK and the market conditions for project financing have improved a lot. We also have mature and good discussions regarding refinancing of the central debt, which will happen this year. And we will come back as soon as we have more news on that one. But it's ongoing and good discussions. If we dive a little bit into the balance sheet, I want to highlight a couple of things here. One is that the shareholder equity is now much stronger than the properties held for future development, and that allows us to invest more in land. and also still keep the good ratios and we see a lot of potential now in acquiring land in all markets actually on and off balance sheet as I mentioned before and we also discuss payments so that it fits with the construction start in an optimal way. and we keep the equity ratio net product asset value well above the financial framework but as mentioned with the seasonality you could also see the same trend on on those curves going up from q1 up to q4 and that that is also what you should expect for 2026 and that type of trends and because q1 is lower and q4 is our strongest quarter in bonava And with that, I hand over back to you, Peter.