Bravida Holding AB (publ)

Good morning, everyone, and welcome to this presentation of Bravida's Q4 Report 2023. And as usual, it's myself, Mattias Johansson, CEO, and... Åsa Neving, CFO.

Good morning.

who will take you through this presentation so welcome very much and we start immediately so Bravida is the nordic leader with a broad diversified footprint we have a lot of different customers in a lot of different places in a lot of different segments And actually, Climate Smart Solutions is already in Bravida above one billion in sales, and that is mainly energy services and building automation. And in turbulent time like this, it could be worth recapping why Bravida is an attractive investment and a safe haven for you as investors. First, we have shown that we have stable and profitable growth with strong cash flows over the years. We are leader in the Nordic region, well positioned for the future, and we can capitalize on the climate and energy megatrends that are in the society. We have stable sales with good risk diversification, which I just told you about. Highly diversified business model and a footprint. And we have approved bolt-on value creation regarding M&A. So a lot of shareholder value creation is possible, and that's why we also, in challenging times, can improve the cash flow with 29%, present an increased order intake with 25%, And also for the eighth year in a row, increased the dividend to 3,50 kronor. And since we did the IPO, we have more than doubled the EBITDA and more than tripled the dividend. And I think this is the proof of the resilient business model we have regarding growth. profitability and cash generation. So into the Q4 highlights. We see strong performance in Norway and Sweden due to both organic growth as well as margin. We are minus two organically due to that the installation business is shrinking a bit, but we are growing the service business with six percent. We also see another four percent added from acquisitions. We have a margin at 7.4% impacted by the challenges we have in Denmark for the moment. We are conducting a thorough review of the Danish business and have implemented management changes and other mitigated actions to turn this around. We have an increased and a strong cash flow at 1.4 billion in the quarter. And it's very great to see that we are soon back to normal levels again. And we have seen an improved KPI regarding the cash flows. And also, of course, we are happy to see that the actions we have been taking is supporting the cash flow. If we look at the full year of 2023, the highlight is of course 12% growth. We are growing the service business. We have 4% in total from acquisitions. We have a very strong order backlog at 17 billion. We have done 17 acquisitions. And we have an LTIFR that is down with 3%, which is of course very good. And that cash flow has improved in the last period of the year. Looking at the beta, I have already spoken about the Danish turnaround and you know that we have successfully used the same playbook in 2019 when we turned around the division Stockholm at that time. So we know what to do, we are doing the same thing here. Other impact on EBITDA margin is non-recurring OPEX from IT and digital investment for sustained profitable growth. We also see that the peak of this investment has passed and we will benefit from this in the end of this year. We have also identified some other savings opportunity or cost efficiency of some central functions that will support the margin going forward as well. So the order intake and the backlog. It's quite interesting to see when we are discussing about a tricky market that we can continue to increase the order intake and also create a very stable order backlog. The order backlog is growing in the quarter with more than 500 million. We have a stable order backlog year on year and the order intake increased by 25% mainly in Sweden and in Denmark and that is because of three large infrastructure orders in total of 1.6 billion. The trend with big investments in infrastructure projects is of course very good for a company like Bravida. We are one of the few who have the competencies, the knowledge, the historical track record of delivering on this. And the customer is a type of customer that is looking for competence more than the price. So we see that the order backlog is stable and will give us good support for the coming quarters and years as well. Going into the sustainability, as I mentioned, LTIFR on group level is down with 3%. It's significantly lower and improved in Finland and Norway, but higher in Denmark. Norway is well below our target on five and a half, and they are showing the way. They are doing a really great work and the rest of the group has to learn from Norway regarding this and this is an important KPI going forward as well. Today we have 25% of all our 8,700 vehicles that are electrical driven. And this, of course, leads to a lower CO2 emission as well. I'm really proud about the work our organization has done in this. It's not a very easy thing to do, but we have actually lowered the CO2 emissions with 9% compared to the net sales now. And I think that is fantastic. We have a target that is higher, but we are well on our way to reach that target. And this will, of course, defend our position as the market driver and market leader in this segment. And this will, of course, be seen by our customers and that will also support the business going forward. So acquisitions. In 2023, we have done 17 acquisitions, adding close to 1.4 billion in sales. We still see a strong pipeline and good acquisition opportunities. You normally ask about the prices. It hasn't been very big changes, but we see that the price is going down a bit. We have a strong pipeline. We will continue to use our balance sheet in this challenging time for many others. We see opportunities and we will take the opportunities when we think it is the right timing to do it. Maybe a bit more selective due to the fact that the market condition is a bit different. So we really need to be sure and do the due diligence in a more thorough way to be sure to doing the right deals. But the pipeline is strong and we know how to do it. And this will of course be a support to our organic growth going forward as well. a good way to continue to develop shareholder value. And that is something we will be able to continue to do. So with that, I hand over to Åsa, who will take you through the different countries.