Bravida Holding AB (publ)

Hi and good morning everyone and welcome to this presentation of our Q3 Interim Report in Bravida for 2026. We are today presenting improved profitability and an all-time high order backlog in a market that we consider as growing. And as usual, it's myself, Mattias Johansson and Petra Vranjes. So CFO and CEO is here to take you through this presentation. So we kick off this As you probably already have seen, we are presenting a really strong quarter this time again, I would say. We have a net sales above 7 billion compared to 6.4 last year. Organic growth at 9%, the same as in the second quarter, so we continue the path on creating value for the company and as well as you as shareholder. The margin is 6.5, up with 120 basis points. Order intake, impressive, plus 72%. And the order backlog is up 48%, coming back to those numbers later to explain it a bit more. And then the balance sheet is really, really strong. We had net debt in relation to EBITDA at 1.0. And if we exclude the leasing cost, Peter will describe that later, we are well below that number. Strong organic growth and increased margin. We are increasing or improving the profitability in all markets with higher volumes. 9% sales growth and all of that is organic. We have some currency effects but also some negative effects on the acquisition part due to the fact that we sold Abeka earlier this year. We see good demand for small and mid-sized installations and larger projects in data centers, but also in infrastructures and defense. 34% EBITDA growth in the quarter, up to 460 million. Fantastic number. And the margin was 6.5. And in those numbers, we have some negative impact of that restructuring cost in Sweden is 8 million. If we are adjusting for that, we have a margin at 6.7%. And that is the same as the margin last 12 months as well, 6.7%. So we're getting closer to our financial target at 7%. And as I said, improved EBITDA margins in all markets. Bravida is in a fantastic situation in the market. The society's transformation and that benefits Bravida's business, clearly. We see a high demand in the defense industry, industrial projects, but also regarding infrastructure and especially data centers, I would say. But when we look at the increased order intake and the order backlog. You see that the order intake is up 72 percent and we are at above 10 billion in the quarter, which is an all time high number. And the order backlog has increased with close to 50 percent to 24 billion plus. I see that some of you is commenting that a lot of this is data centers, but if you exclude or just for the big project in Norway and the big project in Finland. And we consider them ongoing data centers in Sweden, data centers as an example, and put that into the normal order backlog that we have been working with that type of project for six, seven years. We are on an all time high backlog situation, even if we just for the new market. But with that said, I think the new market is here and it's here to stay for a while. So we consider the order backlog as really high and that will support the growth going forward. It would also support the margin expansion going forward because of the type of contract and the price models we have. So we are really, really pleased with the situation we are in. And on this slide, we have some selection of new customer assignments during Q3. And I think it's important to mention the example we have in Norway, where we have signed a new frame agreement with Avinor for electrical services at Flesland Airport. in Bergen. And this is an agreement that we're winning because we have a really strong or good reputation in the area. We have been winning this contract not only price, we have been winning that also because we have the competencies and organization in place and the customer think it's a good place to place the new agreement in. Then in Finland, we see a new order coming from the partnership with... I would say that is the big contract in Finland we won in August, the big data center in Kuvola. And that is part of the new industry that is growing within the order books of Bravida and for the whole industry. In Denmark, you see that we're also building some smaller data centers as a partner to an important client. And in Sweden, we continue the collaboration with Ekodata Center, and that is also something we're focusing a lot on, to continue to serve existing customers. So we are still doing important frame agreements in the local areas. It's not only data centers. But with that said, of course, data center is an important part of our business going forward. And I take the chance another time to tell you that we have a good knowledge. We have the history of delivering data centers. We have been working with data centers in a lot smaller scale, of course, earlier. But we started in 2009 to build together with Meta in Luleå, Sweden. And we have continued to do that in Denmark as well, in other parts of Sweden, and also in Finland the last years. We have done some in Norway as well. So this has always been a part of our portfolio. We have done more than 200 megawatts in total earlier. We've been winning six new data centers in recent months. You all know the Norwegian one outside Stavanger, 4.3 billion SEK. We won the Finnish one in June to XTX, another phase. In July, we also won the new phase for the secret client we have where we have a really good collaboration and a partnership with that client that we hope that will continue as well. In Finland, we signed another big contract in July, and that is the project we are calling Finn04 at North. And then in August, we signed another deal in Sweden. to the secret client. I mixed them up. Sorry for that. The one in July was to Ekodata Center. And then we signed one in Denmark in August as well. Electrical installation, HVAC plumbing, cooling, and BMS in Esbjerg, Denmark. So this is not... some stochastic business we're winning sometimes, we see a good inflow of new possibilities coming in and we are sorting and are very selective regarding who customers we want to work with. So the demand is high, but we try to act very smart in this, try to create partnership with our clients to make sure that we can provide the right service with the right quality to customers who know what they are building. That was about data centers, but we also have another type of advanced projects. And you know Bravida, still close to 50% of our sales is service. IF YOU ADD REVENUE FROM RENOVATION AND MAINTENANCE, WE GET ABOVE 60%. AND THAT IS STILL VERY IMPORTANT. BUT THE MARKET CHANGES. ALREADY IN 2016, 2017, WE IN BRAVIDA STARTED TO BUILD AN ORGANIZATION AND COMPETENCE TO BE ABLE TO DELIVER THESE MORE COMPLEX AND LARGE PROJECTS. WE WON THE BYPASS STOCKHOLM IN 2017. We have been building to Meta since 2009. So that altogether means that we have an organization with a historical track record that we are now using on other large contracts because that is how the market has been developing. Today, the base business, the base market is developing slightly positive compared to last year. It's still not a fantastic market, but it's better than last year. So all in relative terms, that market is improving. But it is important for us in Bravida to participate and deliver the large project as well. And the customers sees us as a very natural partner because we have the resources, we have the size, we have the competencies, and we also have the financial stability that they want to see from a supplier. On this slide, you see 12 example on another type of projects that is really important in our portfolio. We have a factory in Finland. We have hospitals in Finland. We have airports in Norway. We have expansion of Stockholm Metro, Novo Nordisk Foundation, the headquarter. We have the service agreement at Great Belt and Öresund Link in Denmark. We have a science park in Hama. We are building to Hitachi, the science park. They're quite complex building as well. and this is a big part of the market and Bravida is well positioned to use our position in the market to drive growth and profitability from this market. Acquisitions, we have done one acquisition in the quarter. We have acquired Åslunds El, a fantastic company that will strengthen our position in the area around Uppsala and Stockholm. The pipeline and the discussion is good, but we are very selective. We are very thorough in our way of doing the due diligence. If they don't have the right quality in the order backlog or the right margin development throughout the last couple of years, which has been tough, we don't think they're good enough to acquire. So we have been struggling to find good enough targets. So Oslooms Eel is a fantastic example of a company with strong management and good profitability, even in tough market conditions. M&A acquisitions is still the highest priority within Bravida. We have a strong balance sheet. And the first thing we want to use the money to is, of course, to continue to do acquisitions. But still organic growth at 9%. We're delivering a very good growth this quarter, even if we have been not good enough on the acquisition side. But that will come, and that is for sure. So with that, I hand over to Petra and the financials.

Thank you, Mattias. So, looking a little bit deeper on the financials, we are going to go to Sweden and see how we close the third quarter in Sweden. And here we can see that we had a growth, organic growth of 9%. That growth is somewhat offset by the divestment of ABECA, which was mentioned earlier by Mattias. We do have Åslands El as an acquisition, but the ABECA divestment is of course a little bit bigger, so giving a negative 3% growth on the Swedish market. So we closed on 3 billion, 47 million in Sweden, and that is then up 6% in total, including the divestment. Sweden has a good demand in the northern part of Sweden, so now we can also see that the southern part is gradually improving. We will still have a gradual improvement at that part, so that's to be expected, but it's now showing an improvement. And with a 53% installation to service sales ratio, we are bringing Sweden to 6.1% EBITDA margin. In that EBITDA margin, we have a small restructuring charge, which is a one-off, of 8 million SEK. That's the last restructuring charge for the transformation that we have done in Sweden. And now we land on 68 million totally year to date of restructuring in the margins. If I adjust for the small restructuring charge, the Swedish EBITDA margin lands on 6.4%, just as a comparison. IF WE THEN LOOK AT THE ORDER INTAKE, WE SEE THAT SWEDEN IS GROWING 47% YEAR OVER YEAR AND IS REPORTING AN ORDER INTAKE OF CLOSE TO 4.3 BILLION SEK. VERY STRONG ORDER BOOKING AND OF COURSE HERE AS WELL WE DO HAVE DATA CENTERS WITH CUSTOMERS WE HAVE WORKED FOR A LONG TIME WITH BUT WE ALSO HAVE YOU MIGHT HAVE READ ABOUT CITY LINK FOR INSTANCE CAME OUT THE OTHER DAY SO THERE ARE LOTS OF OTHER BUSINESSES and not to forget all the small and mid-sized businesses which we don't announce always. So with that, Sweden is landing a backlog of close to 9 billion. In the backlog, you also have a negative effect of the ABECA divestment with approximately 500 million. And then if we go to Denmark, you will see that we have closed Denmark on 1,929,000,000, which is on par a little bit stronger with the 1% growth year over year compared to the same quarter last year. And then we should remember that Denmark had a very strong Q3 in 25 with a 23% organic growth in that quarter. So strong results also this quarter. And with a 55% installation to service sales, Denmark is closing the quarter with a 7.5% EBITDA margin. And this is due to the very good selection of business where Denmark is focusing on good margin business, but also the turnaround that they have been doing or we have been doing for the last almost two years now. And on the order intake side, we have a 30% increase of the order intake and Denmark is landing on 1.853 billion in Swedish crowns then on the order. Very good uptake on the order intake as well and a strong backlog on close to 4.6 billion SEK. looking at Norway. Norway is increasing the sales with 19% of which 11% is the organic growth and then we have a currency effect of 7%. 1% impact also positive on acquisitions with Nitech bought last year were acquired. And with that Norway's landing on one 1,388,000,000, so 90% up year over year. Good growth, but also good margin increase. Norway's reporting 6.2% EBITDA margin and has been working a lot on the cost side and is now also benefiting from the uptake on the revenue side. On the order intake, we have a 47% increase in Norway. So also increasing quite heavily. And with that, Norway's landing on 1 billion 462 million. And here we should remember that the large data center contract was booked in Q2. So that one we can see in the backlog of 7 billion Swedish crowns, which is up almost 5 billion year over year. And as our last market, maybe the least, but definitely improving, is Finland. And here we can see Finland is reporting a net sales of 701 million. That is up 33% year-over-year, and it's all organic growth, so very strong numbers from Finland. The operations is positive in the underlying business. We have good progress and demand in a lot of branches in Finland, but we want to mention inner Finland and Ostra Botnia region as the strong ones. And of course, we do have data centers also in Finland driving sales. With now 70% installation to service ratio, Finland is closing at 5.1% EBITDA margin. And some of you might remember that we did have a one-off in Q3 in 2025. haven't really adjusted for that margin, but that would land somewhere on four, just north of 4%, so a very strong margin this quarter this year as well. And in the order intake side, Finland is up 2 billion SEK. And in Finland, we did book the large data center order in Q3. So that's part of it, but also good intake from other businesses, small and midsize contracts. On the backlog side, Finland is closing at 3,665,000,000 promising a lot of ramp up going forward. So those were the markets. If we then look at our balance sheet items, we have a very stable cash position, a very stable financial position. It gives us a lot of possibilities for the future for investments. And just looking at the operating cash flow for the quarter, which was in 800 million, and with that the cash conversion came in at 110%. We have a revolving credit facility of 2.5 billion. And with that, we also have a common commercial paper program of 1,850,000,000 plus a 50,000,000 Euro program. And on top of that, there is a three-year term loan of 750 million. And when we look at our cash balances, short and long-term loans, and the leasing, according to IFRS 16, will land on a net debt of 2,564,000,000 or one. times net debt to EBITDA ratio as Mattias was mentioning. Excluding the leasing, we are at 0.45 times net debt to EBITDA ratio at this moment. So you probably read yesterday that we are launching our third share buyback program in Q3. Bravida has repurchased 705,200 owned ordinary shares at an average price of 141.79 crowns and in total that makes 100 million. Yesterday the board decided to carry on the third buyback program and we will be buying back shares during Q4 and before the Q4 interim report at the maximum of 100 million Swedish crowns. So with that said, I will go to the ESG, so our sustainability efforts. We do want to see all our employees going home safe and healthy after the workday, and we are reporting an LTIFR at 4.9 in the quarter, which is below our target of 5.5. We do have an increase in our electrical vehicles for the for the climate. And right now we are at 51% electrical vehicles up from 42 in the same quarter of last year. And this gives us a part of that is then driving the CO2 emission decrease, which is down 33% compared to the base year of 2023. and also the tons are then changing compared to net sales and going down 34% also compared to the 2023 base numbers. And with that, I will welcome back Mattias and he will do some conclusions for us.

Thank you, Petra, and thank you for presenting the strong balance sheet. The third quarter in key metrics, 9% organic growth, which is fantastic and the same as in Q2. So we're now entering a new phase, growth phase, you can say, and we expect to continue growing in the next quarter. The margin is up to 6.5% and the EPS is increasing a lot from 1.19 to 1.70. I think the result after taxes etc. is up more than 30%. Cash conversion as we have guided earlier We have had a bit of a lower cash conversion before, but that is something we have been knowing the reason behind, and we have been very confident that it will come back. And this quarter we are presenting 110% cash conversion, which is expected and a really, really strong number. Net debt, as Peter told you, is low. One time, the rate is one. And the injuries, the LTIFR for our employees is also below the target and improved since last year at 4.9. So I think we are presenting a quarter today with improved numbers all over the field, you can say. which is something we are really proud of, of course. So, solid and exciting platform for long-term value creation. We have a strong organic growth and improved margin development throughout all countries. And that is combination with really strong order intake and a record high order backlog. And in the order backlog, you also have the adjustment you need to do with 500 million approximately due to the divestment of ABECA so really really strong and we as a company Ravida is an enabler of the AI driven digital transformation at the same time as we're benefiting from a workforce that cannot be automated as I see it at least We are the solution of the digitalization and the AI transformation and our services is some kind of AI secured. High customer trust and attractiveness as an employer. A lot of people is searching apply for job in Bravida and customers see us as the very clear supplier in projects where you need competencies that are a bit different and a big number of resources. And we are also in their eyes a very stable financial partner. So we see that our attractiveness is stronger than ever in the market as well. And that is, as I said, due to the stable financial position that also gives us not only the opportunity to win good contracts and create good relations with the customers. It also gives us the capacity to invest in continued growth and doing acquisitions and payout dividend. And also, as you said, do some buybacks. Yeah. And last but not least, our market position and balanced project mix provides a solid and exciting platform for long-term value creation. So with that, before we open up for some questions, I just want to say that our next report is in the 10th of February and I guess that will be the same time as usual, 9.30. So schedule that in your calendar and then we open up for questions. Thank you so much for listening.