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.