ByggPartner Gruppen AB (publ)

Välkomna till Byggpartners presentation av Q1 2024. Med oss idag har vi vd Sture Nilsson och CFO Erik Fogberg. Under första delen av mötet är deltagarna i lyssnarläge och därefter kommer det finnas tid att ställa frågor till talarna. Under frågestunden kan deltagarna ställa frågor genom att trycka stjärna 5 på sin telefon eller använda rutan under presentationen på webbsändningen. Jag lämnar nu över ordet till vd Sture Nilsson. Varsågod.

Tack så mycket. Välkomna hörni till byggpartnergruppens första rapport för 2024 Q1.

Jag heter Sture Nilsson, koncernchef för gruppen och vid min sida har jag Erik Fogberg som är CFO. Vi tänkte att ganska kort gå igenom rapporten och vad som präglar den i det här skedet. Så att vi går in på den på en gång. It was sent out this morning. I can start by saying that the overarching headlines, the theme for this report is that we continue to improve and stabilize profitability in our company. That is the most important signal we have in this report. I will touch on our strong position towards social assets, how we work with collaboration projects, the results that are that we have a solidity that is on an acceptable and approved level again. That is the findings in this report. So, when I go into our business, for those of you who may not follow us every day, we are a company that is almost two years back in time, consisting of three locally strong companies, building partners, Linn Ekeroth and Flodens. We currently have almost 5 billion SEK if we look at the figures for 2023. We have about 1,000 employees and offices in 12 locations in the country. I will come back to a little more about respective companies later. If we look at the events during the quarter, we start by looking at how the order volume has looked during the quarter. It is at almost 900 million SEK. i kvartalet, sammantaget för koncernen, som vi är nöjda med. Och vi kan direkt säga då att, som vi har sagt förut också, att i byggbranschen och som vårt bolag, som präglas mycket av stora projekt som orderiseras en viss datum, så är det väldigt svårt att bedöma enskilda kvartal i vår utveckling. Och det gäller ju även i ett sånt här kvartal då, And that's also because we have a large number of projects that are in the early stages that are not ordered. And that makes us look more at a stable pipeline forward. But there is also another factor, which is that the market is very tough for the present in the construction industry. During the quarter, we have seen many examples of offers and orders that have been taken levels, price levels, which are often very unhealthy, low levels. And that makes many actors today feel forced to take a job at very low prices to get through and create satisfaction. And therefore we have chosen to be very selective with the orders we take during this tough period, which we hope will come out eventually. Therefore, we are very selective about what jobs we invest in in order to create profitability. This is a bit behind why we are satisfied with these 900 million in orders during the quarter. Now let's look at the order volume. Due to that order volume, it has decreased somewhat, a couple of hundred million since last quarter. We have an order volume of 4.3 billion today. And it is reassuring for us in the business, in our companies. And it should also be seen with regard to the large volume of business, as I said, we have in a so-called phase 1, where we work in early design together with the customers, which is not yet realized, so to speak. So the total pipeline we have is still reassuring. I also write here on the page that we have Today, 65% of this order stack is in the form of collaboration projects. And this is a big change we have made in the last two years, which has been successfully strengthened every quarter. To increase the proportion of collaboration projects in order to naturally reduce the risk in the continued business, but where we work much closer to our customers. And this is also evidence that we work in early stages together with our customers in to act as an advisory entrepreneur in a project that then takes place in a collaboration project where we agree on calculations and the formation of the premises. Increased collaboration and a large proportion of earlier steps beyond this order block makes us feel stable with the progress in the order stage. When it comes to the order block, I can also just show a diagram that is that we continue to increase successfully somewhat the proportion of social housing in our order block today. This is our strong position and has made us have a strong position despite the tough situation that has been, especially on the housing side. You can see here that our proportion of housing rights projects is now marginal. It is down to 1% of our order stock. So the entire share of housing has shrunk significantly in our order stock. And we have compensated for that with, above all, social housing, but also commercial housing, which goes up to 25% of our order stock. And there you can say that it is the industry, especially the industry law, that has increased, stands for the increase here now. And that also feels very important to us in this increased balance in the company we have. If I go into the respective segment, companies in the group, briefly. We have a building partner, to start with. We have a new CEO in the building partner, who joined me a few months ago, whose name is Daniel Lindén. We also have a number of counties that are drawn here on the map, as you can see, in Mellansverige. But we can say that the core, the strong core, is in Dalarna, in our company. We have, as we have described earlier, in the Mälardal regions, a larger transition that we have worked with intensively for almost a year now, in order to respond to increased profitability and reduce the risks, so to speak. So there is a strong decrease in presence in Mälardal, but a stronger presence and an increased market share position i Dalarna. Det är det jag vill säga där om byggpartner. Om man säger lite grann en flash på de projekten vi gör för närvarande i byggpartner så ser ni de här. Det är ett antal samverkansprojekt som vi lyfter fram. Vi har nästan 90% av våra projekt i byggpartner, ännu mera samverkansprojekt. De här är i produktion, samtliga förutom det längst ned till vänster, Gävle sjukhus. Det är fortsatt en samverkansfas 1, alltså projektering tillsammans med Gävle sjukhus. Produktionen där räknas komma igång under 2025. Den ligger alltså inte i vår orderstock idag. När vi pratar om projekt här så vill jag nämna, vi gick ut med ett pressmeddelande igår with our largest customer, Ekodatacenter, and it concerns facilities in Falun. We have been building large data halls in Falun for many years now, together with Ekodatacenter. And now, the facility will be greatly expanded with two large halls that will start here in the fall. And we are involved in the early stages of the design of them as well. So, there is a continuously increased and developed collaboration with Ekodata Center, which is a big customer for us today. And we can also say that this increase is still not included in the order block either, but it is in an early phase. But it strengthens the image that we have strong large businesses that are in front of us in that way. If we look at Olin Ekeroth. Olin Ekeroth is the town's builder in Östergötland who really makes up for the name to be a strong locally anchored builder that we have in our business idea. And it also turns out that despite the tough market situation that also exists in Östergötland and where mainly the housing side has largely disappeared from the market temporarily. The company's closeness to the market has been a real strength, which means that we continue to have a good relationship in our order situation. We take the business we want to take and we continue to show good profitability in the business in Ålin Ekeroth. This means a lot to our company that we have this stability, the big local anchorage. If we take a look at the projects that are taking place, one of them is an auction block in Olenäkerot. I think you've seen it before. It's basically the same project as we showed last quarter. We can also mention Toyota, which we work with in Mjölby. It's an example of a customer that we're rebuilding industrial premises for today. A customer that is not affected by our Swedish market, but is a top international market for Toyota. sell trucks and it is very interesting for us to have these industry customers who have a strong demand internationally today in our pipeline. If I go over to Flodens, it is on the west coast, has a project in Halmstad up to Allingsås. It has its weight in social housing, unlike The other two companies do not have the same background in collaboration projects, but they have previously succeeded very well in fixed-price tribunals. But in the last year, we have marked the end of a number of large fixed-price projects that had been affected by large cost-price increases, has shown that the last row of the results in the project, and also for the company, has unfortunately shown a really poor result in 2023. And here we have a position that everyone who is the CEO who joined in 2023 stands for, together with their core organization there, to switch to a new foundation, a new platform of projects. And the projects that we are working on today, as you can see here, All the projects we have in production today are taken under 2023 under the new leadership we have in the company. And we are at the end of these previous old projects that are now ending in terms of production. So this is the continued business we have at Flodens. And we see ahead of us here that we are now in a real transition in terms of profitability in Florens from last year's really bad results.

Should I hand it over to you, Erik? Thank you. If we look at the Q1 summary, we see a turnover of about 1.1 billion. It is a small increase compared to previous years. Rörelseresultatet före avskrivningar uppgick till 36 miljoner och rörelseresultatet efter avskrivningar fick till 16 miljoner. Det är en betydande förbättring jämfört med föregående år som innehöll stora projekt nedskrivningar. Kassaflödet från löpande verksamheten uppgick till minus 47 miljoner i kvartalet och det beror på förändringar i rörelsekapitalet. Rörelsekapitalet i en byggverksamhet is characterized by large variations between quarters and is affected, among other things, by the degree of improvement and type of project. We have a solidity of 26.3 percent at the start of the quarter and thus reach our financial goal of at least 25 percent. The net debt, exclusively IFR 16, increased at the start of the quarter to 154 million. Det är nästan en halvering mot föregående år. Jag kan nämna här också att disponibla likvida medel, inklusive räkningskredit, uppbyggt till 208 miljoner vid kvartalets utgång. Tittar vi på de senaste tolv månaderna så har vi ett rörelseresultat före avskrivningen om 128 miljoner. Motsvarande marginal om 2,6 procent. Moving on to the revenue, we see that Byggpartner stands for over 50%, 56% of the revenue, and LIN stands for about 30%, and Florens for 15%. We see here that Byggpartner and LIN had a slightly higher revenue than last year, while Florens is slightly lower. If we look at the results, we see that just like in quarter two, three and four 2023, we have a positive movement result. And even in quarter one this year, we see a successive improvement in the results. And this big negative result, Q1 2023, is due to the large project descriptions. The movement result before declines goes up to SEK 6 million and after declines to SEK 16 million. The movement margin has improved further during Q1 and the EBITDA margin goes up to 3.2% and the EBITDA margin 1.4%. Based on the segment's development in the quarter, Order-in-Gång och Orderstock har styrrekommenderat. Nattomsättningen gick jag nyss igenom, så vi hoppar direkt på resultatet. Byggpartner har ett rörelseresultat på 14 miljoner och en rörelsemarginal på 2,2. Man är fortsatt till del påverkad av projekten i Mälardalen. LIN har ett rörelseresultat på 12 miljoner och en rörelsemarginal på 3,6. and Flordens is close to a zero result, showing a loss of SEK 1 million per quarter. But we can see that all companies have improved their results compared to the previous year. If we look at the past 12 months, we see that Rokalin is close to 64, respectively 65, Thank you, Erik. Back to

The headlight is to improve profitability. We are working intensively to improve profitability in our company. As you can see, we had a quarter result a year ago that was characterized by strong declines in projects. Since then, we have had four quarters with increased profitability. We are far from satisfied with the profitability we have. We have a goal of 5% in profitability in the last row. We have a good bit left. But we are working to increase it in the future. When we look at the project portfolio we have, both in early business and order stocks today, it is significantly lower risk in the order stock we have. This is due to the fact that we have a higher proportion of collaborative projects, where we have a completely different security in customer relations. It is important to emphasize that we still believe that the business ahead of us will continue to increase the result level of the company. We have further strengthened our market for social housing and increased the industry share. It is important because that is where the market is today. What our customers are asking for a lot today is to reduce the climate impact. and there the tree building is very attractive and interesting for our customers and the market. And we see ourselves as a leading actor in tree building and we build a large number of projects in trees. We continue to improve our ability there in organisational and to continue to develop our ability to early stage give our customers a really good construction on tree building. And as I said, successfully improving traffic margins, And that is mainly due to the fact that we close and close the sourdough we have had. We have had big problem projects in Mälardalen that we have under control today and that do not give further losses to the business, but go to zero results to the finished ones. And we are in the absolute final stage in Gothenburg on the loss projects we have there. And that, together with the fact that we are pushing our business, makes us We see that we are safe with the fact that we are now successfully improving the turnover margin. And that is probably the most important message we have today, that we have put things behind us for a rather worrying time for the company in a still worrying market that we have in Sweden today. But internally in our company, we have increased stability, and that is what we want to shape the report of. That's what we were going to say about the report so far. Then we'll move on to possible questions.

Om du vill ställa en fråga, tryck stjärna 5 på din telefon för att ställa dig i kön. Om du vill dra tillbaka din fråga, vänligen tryck stjärna 5 igen. Du kan även skriva din fråga i rutan under presentationen på webbsändningen. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Då tackar vi för oss att ni lyssnade och som sagt Erik lämnar CFO-rollen i samband med det här och kvarstår i bolaget i en annan tjänst delvis. Och vi har då en ny CFO vid nästa dragning som börjar nu första juni, Karin Mellegård, som vi välkomnar då. Men som sagt, tack för oss. Ha en bra sommardag och så ser vi fram emot att höras nästa kvartal igen.

Tack för oss.

Tack och tack.