Bravida Holding AB (publ)

Good morning, everyone, and welcome to this presentation of our Q3 report 2024. And ours means Bravida. And as usual and always, it's myself, Mattias, CEO, who will take you through this presentation together with... Åsa Neeming, CFO. So again, warm welcome to this presentation. And we start directly with the Q3 highlights. Really, really strong cash conversion. Cash flow improves a lot in the quarter, which is fantastic. We have flat growth, which is pretty much as expected as earlier communicated. Service is growing with 8%. Organic growth is minus 3%. The order intake is down with 12%, mainly because we are very strict in our project selection, but also, of course, due to the soft market demands we see, especially in Finland and the south part of Sweden. Order backlog is still on very high levels. We are comfortable with the size and the margins in the order backlog. There are some differences if we compare some geographies, some regions, branches, etc. But that is always the case. Overall, a very strong backlog with good margins. The order backlog decreases during the quarter except for Denmark. The margin is around or is 4.5%. If we adjust for some one-off cost, we are actually at 4.8 compared to 5.4 last year. And that is primarily affected by the operational changes we're doing in Denmark and the weak demand we see in the south part of Sweden. Happy to see that both Finland and Norway are improving the margins and also that we are having a very good performance in the north part of Sweden and stable performance in the Stockholm area of Sweden as well. We have some costs for changes in the organization, one-offs, both in Denmark and south part of Sweden. They are adding up to 19 million in one-offs costs for the quarter, and that is... approximately 0.3% units on the margin. Norway's margin is up to 5.7% and that is including the big acquisition of Tunisvet that we did last year and the Tunisvet acquisition is going due to the plan as well. So positive development in Finland and also the same in Finland. So very well done from the Finnish and the Norwegian organizations. Strong cash flow, as I mentioned in the beginning, 193 million compared to minus 212 last year. An improvement with around 400 million. And cash conversion at 134%. Fantastic numbers. And also happy to say that the accidents actually leading to sick leave is declining as well. We're improving that number with 17%. The bridge, if we look at the sales last year compared to this quarter, we see, as expected, negative organic growth around 200 million minus.

We are adding some 400 million from M&A, and then we have some currency effects as well, minus 148 million, and that takes us to the 6,500,000. 75 million in sales.

continue to grow from acquisitions, a small drop in the organic, but I think that is showing stability. We also said that 8% growth is coming from the service business, which creates good stability in these market conditions, of course. If we look at the EBITDA, 4.5% this year compared to 5.4%, improved margin in Finland and Norway, as I said. We also communicated earlier this year that we will struggle the first three quarters in Denmark with the margin, and that is also the case. If we adjust for the one-offs in Denmark, we have black numbers even in the third quarter. And from now on and going forward, we will see an improvement in the margin in the Danish business as well. Cost efficiency measures is done.

Um... And we are doing that all the time.

But this quarter we have done in the south part of Sweden and Denmark, but we also continue to do that to adjust to the market conditions, but also to improve our internal efficiency. And that is something we're doing, not only to adjust to the market or improve the market conditions.

The underlying reason because we are doing this is of course to improve the margin going forward.

Next slide is showing the order intake and there is a seasonality the order intake.

Q3 is normally the weakest quarter of the year.

and we are down 12% this quarter compared to last year, and that is very much depending on loss in the installation volumes, but also that we are very selective what kind of business we are bringing into the order backlog going forward as well. Said that, the order backlog remains on high level with healthy margins, so we are confident that we can continue to deliver in the coming quarters as well, and also weight. Vehicles is now electrical driven. The change in CO2 emissions from vehicles is down 13% compared to last year. And the injuries, accidents, sick leave compared... depending on accidents and injuries, is down 17%, which is really, really good. We are now below our group target in Sweden and Norway. We have still some work to do in Denmark and Finland, but that is high on our agenda. So we hope that we can continue to improve this number going forward as well. Acquisitions still... Strong pipeline. We are a bit more cautious now because of the market conditions. of course, it's adding around a half billion in sales. And we will continue to work with M&A, of course, going forward. We have the balance sheet of doing that. But again, it's important to do the right type of acquisitions.

So by that, I hand over to Austin. who will take you through the countries. So, here you are.

Thank you, Mattias. And as we always do, we start with Sweden. The organic growth was negative, minus 3%, but that was compensated by growth from acquisitions by 3%. The EBITDA was 193 versus 208. And that means that we had an EBITDA margin declining at 6.3% versus 6.8%. That is year-to-date 5.7%. And the decline is due to, as Mattias said, a weaker market in the southern part of Sweden.

Were we adjusting now accordingly?

As Mattias also said, we have a transformation program ongoing. We are reducing personnel and we are merging branches and regions. We also have taken a restructuring cost of 10 million this quarter, and that is roughly 30 basis points on the margin. But except for the southern regions, the other part of the Swedish business performs better than last year. Ordered intake was a negative minus 28%, ending up at 2.2 billion.

As we said, due to the Swedish weaker demands, and we are being very selective now.

When we're taking on projects, we don't want to get any projects that will cause us troubles in the future. So we're being selective. We also have no larger projects this quarter as we had last year's third quarter. And some timing effect. We did have a good order intake in Q2 this year. So order backlog at plus 5% year-on-year. Moving on to Norway, where the growth in sales was minus 2% in SEC. But in local currency, we had a growth of 5%.

So we had some currency. effect there. So ending up at 1.2.