Bonava AB (publ)

Good morning, everyone, and a very warm welcome to the presentation of Bonava's Q2 report, an eventful quarter with improved profitability, and we did a refinancing in the beginning of July. My name is Anna-Falk Silund, and I'm head of investor relations here at Bonava, and with me here today, we have our CEO, Peter Wallin, and our CFO, John Johnson. They will take you through the highlight of this report, and we will end with a Q&A session. And you can start already now to type in your questions, and I will read them out at the end. And with that, I leave the word over to you, Peter.

Thank you very much, Anna. And good morning on this fantastic, beautiful summer day. We also have a very beautiful project in front of you, which is Klockaren in Uppsala. which we started in the second quarter. So, let me start by walking you through the market development. We have the quite boring title, perhaps, stable market development as a headline here, but underneath that is sort of a threshold hidden in terms of continued strong market in the Baltics and an improved market in Sweden. where we see both increases in activity levels as well as prices. And overall, in all our markets, this is of course thanks to the support that we get from high disposable income and a pent-up demand for housing. But then in Germany, we have a little bit of hard to analyze the market right now, and it's partially because it's impacted by higher long-term interest rates. And this is because the inflationary impulses has increased the long-term interest rates in the wake of the Iran conflict. And for the German investors, which are consumers, which are normally, they are borrowing less money and they are borrowing much longer durations than what is typically done in the Nordic markets. And that means that the long-term interest rate is very important for the consumers when they buy and invest in new homes. So, it's been weeks with strong sales and weeks with softer sales. So, all in all, it's a little bit of a mixed picture. And as before, Berlin market and the Northern Westfalen with Dortmund, Düsseldorf and Cologne are the strongest markets in our German portfolio. And after the close of the second quarter, the German government also presented a stimulus package for the market. over time this will support the segment that we are active in. Then finally also the Finnish market is continued with quite slow development of the market with softer prices and not so much activity level. One underscoring thing in a very important segment for Monava is the investor market, the rental projects, and we are seeing an increased activity in all the markets we are active in this segment in. And you also saw us publish a bigger deal in the period, but we have not started a project yet, but it's 500 B2B projects in Stockholm. If we take a look at the construction cost, it remains to be stable at the high level, of course, but it doesn't grow as much despite that we have the Iran conflict. But we're keeping a sort of a close check on that. So leaving the market and moving over to Bonava. As Anna said, we have an improved profitability, and this is because the controlled growth part that we are into now. And we more than doubled the EBIT 166 million. And you can clearly see the turnaround of the business in Sweden. And this will be more profound as we go along in the quarters in this year. We posted an EBIT margin of 7.9% in the quarter and 7.6% for the role in 12 months. This should be compared to the guidance we are given of 8 to 9%.

We grew the net sales by 14%.