Bravida Holding AB (publ)

Hi and good morning everyone and welcome to this presentation of the fourth quarter 2025. I'm representing Bravida. My name is Mattias Johansson and Petra Vranjes here as well. And we are the one who will take you through this presentation today. So again, a warm welcome and then I think we kick it off. As you know, Bravida are in four different countries. This is all numbers. And I think maybe the most interesting thing is that we now are 13,400 employees instead of 14,000. And that is just a sign of that we have scaled down in geographies where the market has been a bit too challenging to be able to continue to be profitable in our business. We have a sales top line at 28 billion plus. And I will now take you through the fourth quarter's highlights. Net sales stabilize and the negative organic growth is, you could say, improving or less negative. We have minus two organic growth. Net size is minus 2 and organic is minus 3. Acquisitions contribute with 3% and then we have FX, FX around 2%. Service is down 3% while installation is down 1%. We see fantastic performance in Denmark. So the turnaround we have been talking about for the last two years is something we have delivered on. And I expect Denmark to continue to improve the coming quarters as well. Norway is also adding to the improved margin for the whole group. And all in all, we are actually improving their margin with 60 basis points to 8.1% EBITDA margin in the quarter. As I said, Denmark's solid performance is of course very happy to see that we have delivered on what we have guided you on, but we are also very confident that this journey can continue another couple of quarters. So we expect 26 to be a bit better for Denmark compared to 25. Earnings per share is up 17% in the quarter. We see strong order intake in Finland and good order intake in Sweden and Denmark. Cash flow, as we've been talking about the last meetings with you guys, is improving and we had really strong cash flow. 1.2 billion almost in the quarter compared to 756 million. So now we are... almost at our target again regarding the cash conversion. It's up to 79% and I think that this will continue to improve the coming quarters as well. Cash conversion is at 1.1 so we have a strong balance sheet and it's improved sequentially also. If we look at the full year and the highlights for the full year, you all know that we have had a negative growth, minus 5%. The margin is up compared to last year, 5.9%, which I think is a very strong margin in this market condition. Order intake, all in all, up 5%, and the order backlog is and has been on very stable levels throughout the whole year, and it's also improving. Earnings per share is up 16% and the board of directors proposes a dividend of 3 kronor and 80 öre and that is an increase compared to last year and it's also equal to 63% of earnings per share. This is the slide of how the dividend has developed the year since we IPO'd in 2016. And you can see that we on average have increased the dividend with 14% and we are paying out as I said 63% of the earnings and we still have a strong balance sheet at 1.1 times EBITDA. Cash conversion improving, so we think that we have a solid or strong position going forward to continue to deliver on M&A and invest in Bravida as a company. If we look at the bridge regarding the sales, we started at 8.1 billion. We are deducting 200 million plus from organic growth. M&A is adding another 200 million. And then we have currency effect around 200 million as well. So that means that we end up in 7.9 billion. So if you adjust for the currency we are flat year over year and I think that is also a sign that the market is improving a bit. Our strategy is still focused on restricted project selection. We are focusing on margins and that has of course resulted in a lower margin but also an improved margin. And all in all, this actually is meaning or has led to that we are improving our earnings per share with 17% in the quarter and 16% for the full year. So I think we have done a really good job. I'm very proud of all the fantastic people within Bravida who has saved cost, worked with efficiency and be very close to our many loyal customers as well. if we look at the earnings you can see that it is up from 604 million to 641 million the margin is 8.1 compared to 7.5 and again a fantastic job in a very difficult market the danish business improved to 6.6 to from four percent in the quarter norway presented a 7.7 margin compared to seven and a half then you see a decrease in sweden on very high level nine point six percent and then we have finland on three point four percent and maybe finland is a bit disappointing in the 25 but myself me and the whole team is doing everything we can and we are pretty confident that finland will improve in the coming years and the coming quarters even if they will have a quite tough start of the year. But 26 will be much better year in Finland as well. If we look at the order intake and the backlog, the order intake is up 11% year-over-year. Fantastic to see that some of the higher activity is actually turning into more business. The order backlog is on stable levels and is improving 3% year-over-year and the order backlog is now In the order backlog, we have more projects that are not that long that they've had before. So we are ready to capture the growth when the market turns. And I think that is a very good position to be in. Organic growth in the order backlog is 5%. When we talk about sustainability, I'm very proud that we can present the 59% decrease in the CO2 emissions from all our vehicles. We are also improving our safety work for all our employees and it's down to 4.9. Our target is five and a half on group level. Last year we had 5.9 and I think this is one of the best in the whole industry and that is A good thing that our people in Bravida is coming home from their daily job every day in a safe way. We especially see the improved LTIFR in Denmark and Finland, which is very good because they have been a bit worse or a lot worse than Sweden and Norway before. So it's good that they are keeping up the competition and improving this and that is depending on increased focus and good work, of course. Norway and Sweden are better than the group target that is on 5.5. On acquisitions, which is one way we can use the balance sheet and create value for us as a company and for you as a shareholder. We will continue through acquisitions. It's an important part of our strategy. We know that we have done maybe too few acquisitions in your perspective, but there is a reason for that because we haven't been able to find good enough targets that we have been willing to invest in. And when we sometime have found targets that we see has been very stable in the downturn of the market, they haven't really been willing to sell yet. But we have an active pipeline. We are focusing a lot on this and we hope and think that the 26 will be a better year regarding these acquisitions. The pipeline is strong. And the discussions are many and active. There are slightly longer lead times. We also have divested one part of Bravida. We have been selling Abeca and that is actually turning into the closing of this deal will be somewhere late Q1 or early Q2. They had an annual sale of 472 million and had an earnings of 30 million plus. We own 87.5% of this company. So when you are doing your analysis going forward, you need to deduct this from the total sales and earnings going forward i think this is a good deal for us this is a fantastic company and abeka will get better owners in the perspective so they can in the perspective of scale advantages knowledge etc so they can continue their journey and improve as a company We still think that the high voltage market is interesting, but we want to be in another part of that segment where you have more technique and maybe less excavators, etc. But we wish Abeka good luck and the new owners good luck as well and hope that they can continue the journey they have started within Bravida. With that, I hand over to you, Petra.

Thank you, Mattias. Let's look into our divisions or segments. We will start with Sweden, as usual. We can see that Sweden closed Q4 on flat numbers to the Q4 in 2024, so closing on SEK 3.9 billion. With an EBITDA margin of 9.1%, slightly lower or 0.5 percentage points lower year over year, we are seeing a reduction in services sales and an increase in installation sales. The reduction in services sales is mainly attributed to the conscious decision we have taken to close down some branches in southern part of Sweden and to focus on margin over sales during 2025. Looking at the full year numbers, Sweden is down 8% on organic level. It is helped by the acquisition done that Mattias was mentioning as well. So we have two acquisitions in Sweden that will generate approximately 360 million on a yearly basis. And this comes in during the 2025 with 3% increase on the sales numbers. On the EBITDA margin, strong execution in Sweden and closing the full year margins on 6.7%. Order intake improved during the year somewhat, and we are closing the order intake for the quarter with 12% increase year over year. The backlog is slightly down, but on par with earlier year's numbers. Sweden, we are doing an organizational change, and that organization came into force in Q1 this year, so in January 1st. And as you know, we have taken 20 million in restructuring charges, so one-off charges in Q4. And we will also see a continuation on some one-offs into 2026 with approximately 70 to 90 million in the year. The organizational change is expected to deliver approximately 65 million on a yearly saving and that will start ticking off in 2026, not with the full effect, but continue in subsequent years. If we then look at Denmark, Denmark had a very good quarter three and they continue into quarter four, closing on approximately two billion, which is slightly lower year over year when we look at the growth. However, Denmark is delivering a organical growth that is positive. So in the quarter two percent and they are also delivering a strong full year organic growth. Denmark is continuing their turnaround story and they are doing it very well, executing with pride. And the EBITDA margin is delivered in the quarter with 130 million or 6.6%. And on full year, the expected 5% EBITDA margin is delivered and landing on 370 million in Swedish crowns. Denmark is also increasing the service sales somewhat, so going up in the quarter to 50% of their sales in service sales. On a full year basis, it's 47%. Also on the order intake, Denmark is proceeding well and in the quarter they're delivering a 90% increase in the order intake and the backlog is then increasing to 4.5 billion going into 2026. Norway has a 9% negative growth year-over-year in the quarter and landing on 1.5 billion. Norway is coming from a 2024 with quite a good execution on primarily some of the hospitals, but also other projects. So a decline in Q4 in this year and also a decline year-over-year on the full year numbers, closing on 5.2%. And now I can see 4%, 5.4 billion. So down a bit. EBITDA margin Norway is executing very well on. They have been focusing on reducing cost and sizing to the volumes and are delivering an EBITDA margin of 7.7% in the quarter and 6.2% in the full year compared to the 5.9% that they delivered in 2024. Primarily, the driver is a lower administrative cost in Norway. Order intake is down 11% in the quarter. But if we look at the order backlog, we will see that Norway is stable on the backlog for the full year, slightly up, but very stable numbers. So going into 2026, they are carrying approximately the same backlog as into 2025. And then finally, looking at the Finland numbers, Finland is somewhat up in the quarter, so 2% growth, of which 1% is attributed to their organic growth and 1% to the acquisition made in Finland during the year. On the full year numbers, we are seeing a decline in Finland, so 2.3 billion, and this is due to a tough first half in Finland. We have seen on the orders booked that Finland booked quite significant orders both in Q3 and continuing in Q4 to also increase the order intake. and thus increasing their backlog to 1.2 billion starting off 2026 with a strong backlog. On the margin side, Finland closed on 3.4% in the quarter compared to the 6.4% earlier quarter last year. This is attributed mainly to the two projects in one region that we took some write downs in Q3 and those projects are continuing to closure will bring some not so good margins with them for the finalization of the projects. So that was on the segments or divisions. If we then look at the cash flow and net debt as well. So Mattias just mentioned that we had a strong cash balance, cash turnover in the cash conversion, sorry. in the quarter, and the quarter actually delivered more than a billion in cash conversion. This brings us to a net debt to EBITDA level of 1.1 times the EBITDA then. And if we exclude the leases, we are down on 0.7 to EBITDA, which is very, very low numbers. So a very good and strong cash conversion, and it landed on 79% for the full year. We are well funded and I'm not going to go through all the commercial papers and loans. These are as they have been earlier quarters, but well funded as we stand. And with that, I hand back to Mattias to take you through the summary and some takeaways.

Thank you, Petra. Summary of the quarter. It's worth to mention again, I think, that we are improving the margin in the quarter to 8.1%. And it's driven mainly by Denmark, but also that Norway is contributing. Sweden has a high margin, as you know, are lowering that a bit, but on a very high level. EPS increased 17%, which I think is fantastic. Sales growth is stabilizing on the negative side, but we see some trends in the orders activity in the market, but it's down with 2% throughout the year. And with that in perspective, you all understand that the margin improvement is fantastic. I think it's well managed and well done for many in the organization. Installation and service are both down a bit. We have growth from acquisitions with 3% and then we have a negative impact from the currency when the SEC has strengthened against the other currencies. We see increased order intake in Sweden, Denmark and especially in Finland. Cash flow, as Petra just mentioned, fantastic in the quarter and the net debt is improving. And the board of directors has also proposed a dividend of 380 per share. You probably have read that we have a new organization in Sweden starting in the beginning of 2026. You see this gentleman Lars Toiber on the slide. He will be head of Sweden. And this is actually three Swedish divisions that are merged into the new Swedish organization. And that is because we want to take out or reach some scale advantages, synergies, be more cost efficient, but is also a way to ensuring a uniform range of services in all the different parts of Bravida. So we think that that will improve our ability to capture the growth and gain some market share when the market comes back. The history of Lars is that he started some years ago and he led the turnaround at that time in center, at that time it was called Division Stockholm. He has managed and improved that division together with his team and then lately he also led the turnaround in the south part of Sweden. I'm very happy that Lars will accept and tackle this new challenge. I think he is perfect for this role. The new structure is also meaning that we have a one-off cost in the last year in Q4 at 20 million and we will see some more one-off cost in this year 26 around 70 to 90 million and that will create some savings around 65 million annually. So I'm very happy that Lars is in charge of the new Swedish organization and I'm very confident that this will be an important part of the next step of the Bravidas history going forward. Or creating the new history, you can say. What about the market? I think you all are very interested. We think that the service activity will continue to be stable. There will be some challenges in the installation in the coming quarters as well, but there are variations between geographies. External prognosis forecast an annual growth in installation around 4% and stable service demand. And I think that hasn't really started yet, but the forecast is a third part forecast. So we have good hope that this will happen in 26 at least. So the sooner the better. We also see a very high activity in the market, even if it hasn't really turned into new orders yet. There are some favorable market conditions and I have to mention infrastructure, industry defense facilities and data centers and that these segments that is close to tailor made for a company like Bravida because we have the competencies, we have the resources and we have the footprint to be able to use this potential it doesn't really matter where this is going to be built because we are there and we will be there and competing about this. We will though maintain our project selectivity and also our selectivity regarding what customers we are working with. So continued focus on margin, cost control across all projects will drive the margin up and that will be our focus but we are also ready to focus more on the growth when the market is supporting that move. so with that i have some upcoming events to to talk about agm 28th of april and then the next quarter report is uh my may 5th so you're very welcome to join those sessions and then you have one meeting in july and one in october with that we can open up for q a