Bravida Holding AB (publ)

Good morning everyone and welcome to this presentation of our Q2 report 2025. I will start with some highlights or overall general numbers for Bravida. We are in close to 200 different places in the Nordics, 14,000 employees and we had in 2024 close to 30 billion in sales. 84,000 customers that are served by 350 branches creates a very stable business in a business model that we think is very positive. My name is Mattias Johansson, Group President and CEO of Bravida. And today, for the first time, I have Petra Vanez. Welcome to Bravida. Maybe you want to say something?

Thank you, Mattias. And yes, absolutely. So I've been here for a little bit more than a month now. And I have to say that I'm super proud to be a part of Bravida team. But the first thing that appealed to me with Bravida, it was the long term view that the business is taking. And that combined with the sustainability engagement is super important to me and especially in the marketplace that we are today which is everything else than certain so i have a long experience in the finance finance leadership and management mostly in telecom right so i've come from a long line of telecom jobs in ericsson and intelia but we also work with large projects large complex projects and services in those markets as well. And well, I've been working both in Sweden and abroad. So I've been dragging my family around into the world. We have been located in Russia, in Moscow, working with the CIS countries. really difficult to understand now when we look at what's happening in that part of the market and of the world. We've been located in US working with a big telecom operator in US and Mexico and lots of things happening in the US market as well. But this experience that I've gotten really have given me a sense that business is not that different in different locations and markets. But on the other hand, it's also very different because we also have ways of working, ways of living, we have cultures, we have all of this, which brings us strengths and opportunities. And with Bravida being present in the Nordic markets and having so many locations, the 350 branches in so many locations, that appeals to me. It appeals to me to work in the footprint and to get to understand What are our strengths and what are our opportunities? What can we do better in those markets? In this month, we've been traveling, you and I. We have been to Norway. We have been to Denmark. We have been to the southern part of Sweden. We haven't been to Finland yet. We haven't been to the northern part of Sweden. Really looking forward to getting there. But of course, I met the teams. I have met the business segment heads. I have met their teams. They have helped me to feel welcome into Bravida. They have helped me to start understanding the business. And I think, you know, what I'm seeing is a lot of professionalism, a lot of skill. We really, really have a good crew, good customer engagements, good focus on the customers, the dialogues that are happening out there. I really want to support that, right? So all the skill that we are seeing is excellent. I think we have another gear to put in when it comes to the scale though. So if we could combine the scale and skill being the entrepreneur in the local market and leveraging on the large company that we are, that's really where I want to make a difference. So as the Bravida CFO and my team, we're thinking we want to be part of creating a foundation where we can continue having this open dialogue. So supporting with information flow, with structure, so that we can help the business continue with the internal and external dialogues. And of course, we want to work with governance so that we can put the gear in and get to the scale as well. So that's really what I'm looking forward to. And I'll say like this, I feel super, super Humble, welcome and peppad, as we say in Swedish. So up and running. And I want to thank everybody for bringing me on board.

Yeah, great. Welcome to Petra. And we are super excited as well. You will hear more from Petra in a few minutes. Thank you, Petra. And I can tell you that Petra will add another dimension to me, to the management team, to the whole Bravida, to help us develop Bravida to the next level. So really looking forward to that. So with that, going into the Q2 highlights. As you all probably have seen already we are still facing a quite tough market and that means that we are presenting a lower sales the net sale is down nine percent and we have communicated and said in the report that this is a balance we need to have because we want to have a balance between the margin and the risk exposure coming back to that later The order intake increased though with 9% and the order backlog increased with close to 1.3 billion in the quarter and fantastic to see that the margin improved to 5.4%. Being able to improve the margin when you are declining the top line is very good as I see it and is a result of our restrictive project selectiveness, cost control, better production and mix between different types of projects and customers. Cash flow is negatively 80% cash conversion and we see a net debt at 1.4 times EBITDA in the second quarter, the last 12 months. Happy to announce that the LTIFR is decreasing with 12% and the decrease in that number is good. We are improving the numbers to 5.2 and it's mainly driven by Sweden and Norway already well below the group target and in total we are below the group target as well. And we also have reduced the CO2 emissions in the last 12 months with 15% close to. You can see a big drop in the installation sales compared to the service sales, which is as expected. If we look at the bridge regarding the sales, you see that we have some currency effects now. A pity when Denmark is improving that the currency is impacted negatively, but that is just how it is. We see that M&A adds 92 million in sales, and then you see 612 million in negative organic growth, and that is divided from, you could say, 100 million is coming from closing down different cost units and branches in the south part of Sweden. We also had some tough comps in Norway. We had very high production last year in this quarter. But of course, the market is impacting this as or in combination with our own selectiveness regarding what type of projects customers were choosing to work with. On the other hand, that is giving a better margin. Talking about the margin and EBITDA, you see that we have increased the margin from 4.5% to 5.4%. And again, I think this is impressive to be able to do that improvement in this type of market when we're losing volumes. The main part is coming from the improvement in Denmark that we have been communicating a lot around. But it's also of course very, it's good to see that we are meeting the things we have said and planned internally in Denmark. The Danish team are working hard and we can also see the result of this. The other part of this is that we have been selecting what type of customers we are working together with, but also what type of projects and the pricing we have set in the orders we have been winning for the last 12 months. We see that the margins in the orders we have won the previous quarters is on okay level or quite good level so we've been able to improve the margins in the order backlog the last quarter despite the fact that we have a decline in the market and that is again back to the focus on margin over volume. Other things that is impacting the margin is, of course, that we have had really good cost control. We have been able to lower the cost both in absolute numbers as well as in relative terms compared to the top line, which is really, really good for everyone, from everyone in the organization. And then we can see some better productivity in the execution we are, in the produce we're delivering to the customers as well. All in all you see the biggest basis points improvements in Denmark. We have some small improvement in Sweden and slightly more in Norway. Then we are struggling in Finland and the Finnish market is still probably the toughest market we have in the Nordics and it will be the same the coming quarters I think. But we are very selective. We are saying no thank you to projects because there are too low prices. But there is some increased activity in the market where we see some more discussions with customers. and external forecasts regarding the markets in all countries say that it will be a bit unstable in the last part of 2025 but will most likely be improved in 2026 and 2027. If we look a bit at the order intake as well you can see that the order intake increased nine percent year over year. The order intake increased in Denmark but decreased in all other countries. To the left you can see that we had an order intake 8.1 billion and actually that is the second highest order intake in any single quarter we have had in Bravida if we look you know as we have a seasonality in this industry and this business as well so if we just look at the second quarter this is actually the highest order intake we have had in the second quarter which seems to be part of some kind of turnaround in the market because we can see that the margins in the new orders we have taken is at the same level as previous quarters or actually slightly a bit bit better. we look at the order backlog it increased with close to 1.3 billion in the quarter mainly driven by denmark but also norway is adding to that we are still struggling in sweden and finland activity is high or not high it's better it is improved i take away it's not high it's better than before so maybe that is the first sign of a change in the market. But let's see what's happening in the coming quarters. But order backlog, as we have said many quarters before, the margin in order backlog is okay or slightly better than before. Of course, we wanted to have some somewhat higher order backlog, but the market is what it is. And again, we want to have a balance between the risk exposure and the new orders we are winning. ESG, today 40% of all 8,500 vehicles are electrical driven. That is something we have worked with for many, many years, and that also shows in the numbers. The LTM numbers for the CO2 emissions is down 15%, and if we compare to 2020 and adjust for the growth we've had, we're actually down 40%, which I think is fantastic. And also a thing that customers more and more are looking at going forward. As I said before, decreasing number of injuries, which is really good for all our employees. And we are now at 5.2. We see an improvement in Finland as well as in Sweden. Sweden and Norway has quite low numbers from before but now we see some improvement in Finland as well. And Finland and Denmark is the countries that we need to improve to get even lower on this KPI. Science based targets has approved Bravida emission reduction targets. The climate targets are absolute emission targets for scope one and two and an engagement targets for Bravida scope three emissions. And that is something we press released a couple of weeks ago as well. Regarding acquisitions, we have done one acquisition in the second quarter, adding close to 350 million in annual sales. In the beginning of Q3, we have done another acquisition in Finland, adding 45 million annually. And there are interesting M&A discussions ongoing. But I think it's fair to say that when we are discussing with targets, we can see that it's demanding to find good enough targets because the market we are impacted by is also have also impacted companies we want to buy and quite often a lot lot more we see in some cases that the earnings is going down or that the order backlog is not healthy enough for us to buy so Again, we have discussions ongoing, a bit more tricky to find targets we want to buy. We have the balance sheet to support future acquisition, and we will do it when we think it's a smart idea to do it. So by that, I hand over to Petra, who will take you through the different countries.