Bravida Holding AB (publ)

is up it's up in Norway Denmark and Finland it decreased in Sweden but you should remember that last year we had a really big contract coming into the books in in q124 that was the underground in Stockholm and the order backlog increased in all countries and the order backlog is only containing the business regarding the installation and not the service business ESG, we want to be the market leader in this segment. And today we have close to 40% of all our 8,800 vehicles electrical driven. And that, of course, gives a really solid improvement in the CO2 emissions from vehicles, down 15% the last 12 months. And if we compare to 2020 as a base and also take into consideration the high growth we have had since that, the improvement is actually 38%. The injuries LTIFR is close to our group target now at five and a half. Sweden and Finland is improving a lot. Norway are already on low numbers. So we hope that we can improve this in Denmark the coming quarter so we on group level can reach our target. Because it's of course very important for us to have a safe environment for all our employees as well as the customers we're working together with. Acquisitions, it has been a slow quarter in Q1, but last year we did 10 acquisitions, slightly less than we normally do in a normal year, but that is not depending on the low amount of opportunities we're having. We still have a really strong pipeline, but we are very thorough about what acquisitions we are doing. And we have started Q2 by doing one quite large acquisition, adding close to 350 million in the second quarter. And we think that we can continue to use our balance sheet going forward. because of the strong pipeline and the momentum we have due to our model of doing acquisitions as well, because we see that our way of doing acquisition is seen as a more favorable one than some of the other players in the market are using. In Denmark, we haven't focused on acquisition so far. We have focused on improving our own profitability, but now we are opening up for discussions, starting to work in Denmark with acquisitions as well. And Norway had been a bit of blocked as well for internal reasons because of the integration of Tunestvet which is going due to plan in Q1. They actually were merged into our ERP system and it is still in line with what we have expected. Opportunities are many, pipeline is strong and we still see that the price levels are very stable. So with that, I hand over to Jossa and let you present the different segments.

Thank you. Then I will take you through the countries. And as usual, we will start with Sweden, where we had a decrease in sales of 6%, ending up at 3.3 billion. And this is explained by the soft market that we have in the southern part of Sweden and also our strict project selection due to that decrease. The southern part of Sweden had a volume decrease of 250 million year on year. So we had a sales, a service sales that was down minus 10 percent and installation was down minus three. The organic growth was eight percent negative and we had some decline. some growth from acquisitions of 1%. EBITDA was 165 versus 172. But even though we had a soft market and decreased sales, we managed to defend and also increase slightly our margin to 5.1% compared to 5.2%. Last year, the order intake was 10% minus year on year. And if you look at last year, we had two larger orders coming into the books in Q1. We had an order backlog that increased during the quarter in Sweden. Moving on to Norway, net sales was down 12% to 1.4 billion. This is due to decreasing sales in the installation business. And last year, we had a couple of projects, mainly hospitals, with high production in the first quarter. So the comps were pretty tough. The organic growth was negative 10% and there was a negative effect of FX also on 2%. But I can say that installation growth was actually down 25% due to this high comps that we had last year. EBITDA, 74% versus 79%. And also here we managed to improve the EBITDA margin significantly. despite the lower sales to 5.2% compared to 4.9%. And the margin improvement is coming from the installation business. The order intake in Norway was plus 8%. And the order intake is coming from installation that was up 37% in the quarter. And we're happy to see that. We're also happy to see that it's healthy projects that we are getting into the order backlog. And the order backlog increased by 173 million in the quarter. Denmark. Happy to see that Denmark is continuing to improve as planned. And in Denmark, we have a growth in sales of 5%, so ending up at 1.7 billion. And this is due to a strong growth in the service business, plus 5%. We also have organic growth in Denmark on 5%. EBITDA is 60 versus 16 last year. So we are really happy to see that this improvement is continuing. And the EBITDA margin improved to 3.5% versus 1% last year. And it's due to better performance in both installation and the service business. Order intake is up 4%. This is coming from the service business. And the order backlog increased by 142 million in the quarter. Then Finland. Finland is a tough market. The sales growth was down 4% and the growth in the installation business was minus 10% and the growth in service business was plus 11%. Net sales ended up at 548 million. It was a negative organic growth of minus 17. We've done some acquisitions in Finland, so the growth of acquisitions was plus 13%. EBITDA 8 versus 7 last year, and also here the EBITDA margin improved. We managed to defend the margin in this tough market also, and the improved margin is coming from the installation business. Order intake increased by 20% year on year, and this is also a strong order intake from installation, which is improving by 43%. in local currency. Order backlog increased by 150 million in the quarter. So that was the countries. And to summarize that, just to stress what Mattias said, that we have, even though that the sales is decreasing in all countries except for Denmark, we have managed to defend the margin in this very tough market and also improve margin in all countries. And we have a growing order backlog with healthy projects. By that, we will move into the financial position, which is continuing to be strong. If you look at the chart in the middle, you see the operating cash flow. It's still on a strong level, 280 versus 399 last year. And the difference here is actually subliminal. supplementary tax payment that we did in Denmark this quarter. That's the main difference here between these quarters. Looking at the financial position on the left-hand side, you can see that we have a cash balance of 608. We have a debt of 1.3 and we have a term loan and we are using commercial papers. We're not drawing anything from the RCF right now. And the leasing according to IFRS 16 is 1.4. This leads to net debt of 2.2 billion. And with the LTM EBITDA also on 2.1 million, we have a net debt EBITDA LTM EBITDA ratio of 1. Cash conversion improved, as Mattias said, to 201% versus 90% last year. We still have two large unpaid receivables, one in Denmark, one in Norway, that we expect to be resolved in the end of this year, so last quarter. And then we still have... one additional large unpaid receivable in Denmark that hasn't changed anything since the last quarter. We don't expect it to be resolved until 2028. But to summarize, low net debt, strong cash flow. By that, Mattias, I will hand it back to you.

Thank you. And I then get the opportunity to talk about the market. First, I think I want to say that service activity continues to be very stable. And that is... Big reason why we can be as stable as we are today. Close to 50% of the revenue is service, as you know. The challenges in the installation business is probably going to continue for a while. There are big differences between different geographies. It is some areas where we have normal markets, some areas where we actually have a quite good market and then we have areas where the market is really, really tough. So again, that is what you get when you invest in Bravida. We don't have low demand in all places at the same time, but we still see that there will be some challenges going forward. We saw after in the end of Q4, beginning of Q1, there were positive discussions with customers and there still are in some areas. We are actually a bit positive regarding the underlying demand in the market. As I said in the report, it seems like some customers have paused the decision a bit because of the uncertainty in the global environment for the moment. So we are a bit positive at the same time as we really don't know when it starts to kick in. But we can probably say that 25 will be... Difficult year. Not tougher. I think it has bottomed out, definitely. We will have some easier comps going forward. But the orders we are winning now or the coming quarters won't start until 26th. there are some areas where there are very favorable market conditions. And that is, for example, in infrastructure, industry, defense facilities and civil engineering. And that gives us business opportunities. And we, Bravida, is a solid, strong, competent partner to our clients in those type of projects. So we think that we are in... a good position to actually win these type of contracts. We have the knowledge, we have the financial stability, and we also hear from the organization now that we are not winning projects on price. And as I said, the orders we have been winning is actually a decent or good margin in those projects, and that is because customers are... very interesting in buying from a financial stable partner and that's us. We will maintain our project selective strategy because that is the only way to go through this type of cycle in the market. We will focus on margin before volume and I think we have proven that in the first quarter when the revenue is down 5% and we still are improving the margin and have strong cash flows. And then on top of that we still see an attractive pipeline of possible acquisitions to do and we have a balance sheet that supports that action and we will do acquisitions going forward. Shortly about the financial targets. You all know that we have a margin target at above 7% which we won't reach this year. That is a target over the cycle. We will get closer to it for every year now. We have a strong cash conversion. We have reached that target for many, many years. Debt level is below target. Sales growth for the moment is not met. And the dividend, I think it's paid out tomorrow. And that is well above the target of 50%. So if we should summarize the quarter, top line is down 5%, and that is mainly due to the installation business. Service business is really, really stable. We are growing from acquisitions with 2%. We have increased order intake in Denmark, Norway, and Finland year on year. We have increased order backlog with good margins in those contracts in all countries compared to last quarter. And we see improved margin in all countries. Stable cash conversion and good cash flow and the ESG KPIs like LTIFR and the CO2 emissions is improving a lot. So before we take questions, just want to mention that we have the next report in beginning of July and then we have the third quarter in 24th of October. Seems quite distance now because we have a lot of work to do before that. But with that, we open up for questions, please.