ByggPartner Gruppen AB (publ)

Thank you. Welcome to Byggpartnergruppen's quarterly report. We're going to go through the quarterly report. It's the last quarter of the year, so a summary of what the year has looked like. I'm Sture Nilsson, CEO of Byggpartnergruppen. On my side is Karin Mellegård, CFO. Let's get started. We'll start with... For those of you who may not have listened to us before, what is Byggpartnergruppen? In short, we are a renovated entrepreneur that today works through three larger companies and runs a locally anchored business where entrepreneurship is at the center. We are established in Mellansverige and especially in Dalarna through Byggpartner, the largest dot company. Vi har ett starkt fäste i Östergötland genom Olin Ekeroth och vi är efter västkusten genom bolaget Flodens. Vi har sammantaget nu vid årsskiftet 945 medarbetare. Vi omsatte under 2024 4,8 miljarder i omsättning. Våra fokusområden, förutom att vi är starkt lokalt förankrade och följer naturhusmarknaden på varje lokal etablering, så är vi väldigt fokuserade på att and strives to work close to the customers in what we call a form of collaboration, where we early together with our customers create conditions for our projects. We have a strong tradition in tree building and we are committed to continue to develop on the tree side. It is also an important component in our increasingly sustainable work in the entire company. It's a little short about the company, where we stand. what we are basically. So if I immediately try to summarize quarter four, then we come back to the different parts. But overall, we have had a strong end to the year and we have had a very strong focus throughout the year on restoring profitability at a higher level than before. And that means that in that tough bygdbranschen som vi nu har befunnits oss i det här året så har vi prioriterat verkligen lönsamhet i vår verksamhet före volymutveckling och varit då selektiva när det gäller nya jobb i projekt så att vi inte ska fastna i låg lönsamhet framåt här nu. Vår orderstock har därför den formella orderstocken har därför gått ner men vi har också en helt annan kvalitet i orderstocken den är sund idag And we can say that we have fresh projects in our order stock today, and that is very important. About 65% of our business is run in a form of collaboration with our customers. And there we now have an unusually strong pipeline of early stages where we have started collaboration with our customers in an early phase, a consult phase, as they say, phase 1. that have not yet resulted in order stocks. And there we now have a strong pipeline that we estimate will be able to be ordered and launched under 2025 to a total turnover of 3 billion. And that means that if we have a formal order stock of over 3 billion, and then we add this pipeline that we estimate results in 6 billion in a project base. And it is important for us to point out that by working in cooperation, order registration will come later in the process in these projects. Our result in quarter four has strengthened. We now have seven quarters in a row with positive profitability development. Our result EBITDA, which is the result of deductions, rose in the quarter to 57 million. And we now have no idea about the loss project that has lowered profitability for a long time earlier. So our margin on this result was 4.1% in the quarter. And that is the strongest so far on this journey. But as I said, a large number of quarters in a row, this with positive development has been important for us. The cash flow as The fluctuation between the quarters has been very strong during quarter four, plus 100 million in cash flow. This has made it possible for the profitability and the cash flow to have a strong financial position. We have a solidity of 28% and we have a low debt, which means that we come back to the fact that we also propose a division via the board last year. Det är sammanfattning där och om jag bara kort går in på lite projektverksamheter så skulle jag vilja lyfta fram just några påbörjade samverkansprojekt där vi jobbar i det här första konsultskedet tillsammans med rådgivare och sen där vi räknar med att under 2025 kommer vi att orderanmäla och produktionsstarta entreprenadfaserna i de här projekten. Här har vi då fyra projekt av reell storlek. Bland annat så har vi tecknat kontrakt med Hemse om att bygga två stora skolor i omkile. Vi har precis startat i samverkan med Vattenfall om att utveckla Forsmark med ett antal fastigheter. Vi har skrivit ett längre ramavtal med Håbo kommun utanför Stockholm om att samverka kring ett antal fastigheter, framför allt skolor, som kommer att byggas inom kommunen. And we have continued cooperation with Eko Data Center in Falun, where we have built four data halls and plan to continue to build more in the future. This is important to highlight, that this is a way of working that we mainly want to have. To work in an early stage that then later results in safe orders when we have worked through projects. Then we can still give examples of some ongoing projects in total in our concern. We are building today in Motala, a municipal office or office for the municipality. There is a large tree in the ground that is on the way. We have a long-term mission to renovate a residential area in Varberg that we route. We have a larger reconstruction and construction in of a high level with Bålänge. And in Linköping, we are building a larger office. And then, above all, our focus there is that it is a strong focus with us and our customer that recycling is at the center of that project, really. That's a little bit about the project base today. I was going to leave it to Karin, who goes down back to the city development.

Exactly. And if you look at the diagrams that show our order entry, you can see a very clear trend with a lower order entry quarter for the quarter of 2024. And when we closed the fourth quarter, it went up to 764 million kronor. And this is essentially much lower than the 1.3 billion we had in Q4 last year. Byggbranschen präglas ju av stora projekt som orderregistreras vid ett visst datum, som du var inne på tidigare också, Sture, och det här gör ju också att det är svårt att bedöma och dra slutsats egentligen av ett enskilt kvartal. Men när vi summerar den totala orderingången för 2024 så ser vi att den uppgick till 3,4 miljarder, och det måste vi jämföra med 4,9 miljarder 2023. Det här är ju en minskning A conscious strategy that we have, since our focus is profitability, which means that we prioritize profitability before volume, and we are still very selective with new jobs, since we don't want to have the wrong project in our project portfolio. We see that it is still a tough market, and as we have commented earlier this quarter, there are many actors who continue to leave offers at unfairly low price levels just to create a problem. And that is also the reason why we are very selective and disciplined in our approach to the choice of project. The order volume shows our future production volume in confirmed orders. And due to a lower order level, the order volume has also decreased. In the quarter, it rises to 3.2 billion, which is almost 1.4 billion lower compared to the start of 2023. Den här nedgången är kopplad till vårt selektiva förhållningssätt vid val och projekt, men också till följd av, som vi tidigare kommunicerat, att vi har minskat vår verksamhet i Mälardalen. What is important to remember, and which was just mentioned by Sture, and which is not visible in these figures, is that a large part of our ongoing projects are so-called phase 1 projects, where we work in early design with the goal of being able to draw a final entrepreneurial contract for the large work that will be carried out in the next step. And this for us means that the total underlying pipeline that we have is still reassuring, but we do not see it in the diagram in that way. But if you take a look at the phase 1 project, it means that together with the order stack, we have a total project base of about 6 billion. In summary, we can see that our selective attitude is still a tough market in combination with the fact that we prioritize collaboration projects. means that our current project base has a higher and more healthy profitability potential, as well as a lower risk level compared to earlier, since we have also completed the loss projects that were previously taken to a fixed price in the middle of the day. The distribution of our order stock shows that we still have an overwhelming proportion of social housing, but we also have a very strong position in commercial and industrial housing. Sture just mentioned several new projects that we are working on in collaboration, and we also have several ongoing building nations and exciting school projects in the Dalarna as well as on the west coast. In Östergötland, there is now a great focus on the office project. Vår omsättning i kvartalet uppgick till närmare 1,4 miljarder och det är i paritet med utfallet kvartal 4 föregående år. Summerar vi helåret 2024 så landar vi på en omsättning på 4,8 miljarder och det ska jämföras med 4,9 miljarder 2023. Omsättningen i vårt största segment byggpartner är fortsatt stabil. Som vi nämnt tidigare så Our segment in Östergötland, Olino-Ekerot, has a still tough market situation, where the housing market has disappeared quite abruptly. But we have managed to show stability, despite the fact that they are acting on a market where projects are taken with prices at unsanitary low levels. In our segment, Flodén, there is a continuous transition to a more collaborative project. And once again, our focus is on continuous profitability in terms of volume, and we see that in the graphs to the right when we look at our moving results. And we look at EBITDA, which is the moving result before declines. We are continuing to successfully improve and stabilize profitability. For the seventh quarter in a row, we are preparing a positive result, which we are very pleased with. In the quarter, the movement results for the reduction to 57 million and it involves a margin of 4.1%. Quarter 4 should be a strong quarter when projects often end in this period, and this is also the case in our largest segment, Building Partners, where we have a strong underlying result both in the quarter and throughout the year, where project results positively affect the result. Kvartalets resultat är även belastat med ett negativt resultat i Flodens på 5 miljoner och det här är till följd av en slutuppgörelse i ett enskilt projekt. När vi summerar 2024 så har vi en lönsamhet på 165 miljoner och en marginal på 3,5%. This is essentially a much better outcome compared to the year 2023, when we landed at minus 92. So we are on the right track, but we also have a bit left to our long-term goal, which is 5% in the spring. Our financial position continued to improve during the quarter, and we had cash flows from a running business that amounted to 101 million kronor, and the solidity ended at 28%. The cash flow is due to changes in the capital movement, and in construction companies, it is characterized by variations during the quarter and is affected by both the degree of employment as a type of project. But our assessment is that the cash flow should continue to develop positively, and we have a reduced exposure to surplus projects. To sum up, the cash flow from the current business to 82 million was raised throughout the year. And the solidity that I mentioned earlier, It ended at 28 percent, which means that we are still above our financial target of 25 percent. With the background of our increased stability and positive financial development, the board will provide a share of 50 euros per share. With these positive news, I will leave it back to you.

Yes, and then I was just going to briefly touch on the different, our three segments here that Karin has been in on earlier. We start with a building partner, which is the largest part here, so here we have the largest result improvement compared to previous years. We have now cleaned and completed the loss project that has influenced both 2022 and 2023 in the building partner. And we have the strong base in Dalarna, which then has Together with a restored situation in Mälardalen, we have achieved that in the last two quarters, we have accumulated 5% in profitability in the last row in Byggpartner. We are very pleased to have restored them. Here we have a reduced supply, as we have been talking about, but here we also have the largest part of the collaboration project in Byggpartner, which will result in new production starts and ordering under 2025. So we have a safe base for 2025 in Byggpartner with us. And that's the most important thing. This change has meant a lot to the entire company, that we have a strong base in Byggpartner. Then we look at Åhlén Ekeroth, which is our strong market leader company in Östergötland. There we have slightly increased turnover, but we have a weaker ordering rate, also here. This is characterized by our selective view of not going into the wrong project when it comes to solutions. So the margin is somewhat lower, characterized by the tough market, but we still see a stable business in Olin Ekeroth in the market that we are in. We feel that we stand strong with a stable company in a market that we see When it comes to our third segment, Flodens, we have reduced the turnover by 24%. At the same time, we see a very active market on the west coast, especially in our main segment, which is schools and other public buildings, which gives us opportunities for growth in the future. The most important message is that after two tough years of change, We had a problem with the cost development. Now we have a transition that is strongly ongoing in the company, which means that we expect a positive result in 2025 in the business. As Karin said, we have a quarter's result in Q4 that is still negative, but it is influenced by the last end regulation of the project. So there are three things that we need to do. segment. To sum up this presentation, we want to highlight what has been our absolute focus, which is to strengthen profitability in the long term. That we have the seventh quarter in a row with a successively strong profitability, that has been our absolute focus. That we have an order stack with higher profitability potential has had the consequence that it is lower than before, but stronger as I said. In addition to the order stack of about 3 billion, and collaboration projects at the same level. About 3 billion, which we expect to start in 2025. So overall, we have a strong trend forward. And as Karin said, a strong improved cash flow, and it gives us stability, which also allows us to resume a division in the company. If we look forward, it is a constant step in our business. Continue to work hard with profitability, to get a constant stability in our business. And we do that by focusing on meeting our customers where we can in collaboration. It means clearly to work in early stages together with our customers to reduce the risk for us as entrepreneurs and also ensure the safety of our customers. So collaboration is the focus for us. We continue to develop our tree segment, which is our big competence to develop further. And that means that all the more focus that we also have on sustainability within the business is much influenced by the fact that we have a strong commitment and believe that tree building is a very important foundation in the sustainability part. We have a bit left to our profitability of 5% in the entire company. It influences our work, as I said, forward. We believe in growth forward, but continue with limited risk. Det är vår huvudsakliga budskap här nu och framåt. Ja, vi passar på att påminna också om att man årstammar i Falun den 12 maj. Och med det så lämnar vi över till frågor.

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. Nästa fråga kommer från Oliver Ucitalo från Aktiespararna. Varsågod.

God morgon, du och Karin. Jag tänkte börja fråga kring orderingången som fortsätter minska, men... Ja, det är en effekt av att ni prioriterar lönsamma kontrakt. Men på vilken nivå tror ni att orderingången kommer att börja stabiliseras? Tänker ni att orderingången fortsatt kommer att minska kommande kvartal eller hur ser ni på nivåerna?

Vi kommer inte att ändra synsätt när det gäller att vara selektiva med projekt. Men vi ser ju en marknad som försiktigt går åt rätt håll så att vi ser ingen fortsatt minskning av orderingången utan som sagt vår omsättning bedömer vi inte ska minska. Det är ju resultatet av att de här samverkansprojekten kommer att bidra till att vi har en fortsatt stabil omsättning i bolaget.

Just det, just det. You mentioned that you have set a margin goal of 5%. That has been the goal for Marginal before. Despite the improvements that you have made over the years, it is still a bit far. How are we going to interpret this margin goal from the market side? Do you think you will be able to make it here in the coming year?

The most obvious example is that our largest segment, building partners, in the last two quarters have fallen by 5% in profitability. And a big part of how we will be able to lift this in the short term is primarily that Flodens turns up from a loss that was marked and kept down in the margin in 2024 to be positive figures this year. And that will mean a lot for the combined result. We still believe that... We see the possibility of these 5%, but we also have a market that... That has limited us so far, in a way.

A quick follow-up question. Do you think it's enough to upload to a normal level of profitability for the entire company

What we have is that Byggpartner has now shown that they are at 5% and can hopefully remain at that level in the future. And Olin Ekeroth has a history of having been at these levels before, but has then been influenced by the tough market that we are in. So we see a successful utvecklingen hos Olein Ekeroth mot den här nivån. Även det kommer ta en viss tid framåt. Och med Flodén som återger plussiffror så kommer vi att successivt närma oss den här nivån. Men hur snabbt, det är svårt att säga, men det viktiga för oss är att vi successivt kommer framåt. Att det går åt rätt håll. Det är det vi har fokuserat på nu under, som vi sa, under två år egentligen, att successivt ta de här stegen. Vi räknar med att den trappan fortsätter.

Yes, thank you for clarifying. I have a question about your phase 1 pipe that you are now preparing a little easily. It's nice to say that it is well filled, so to speak. And you are also aware that the conversion to the order block will start now in 2025. Do you have any feelings about how How much will you be able to convert in 2025?

The difficulty with that is to know exactly when the production starts in these projects. The total volume that we are lifting in these project volumes is the 3 billion. But how much of it exactly will generate revenue 2025, it is still difficult for us to say exactly. But our best assessment is that our combined turnover in the company will not go down during 2025, but will remain stable. And then the start of these projects will be decisive that it happens, so to speak. But exactly how much of the 3 billion seen 2025 Det beror väldigt mycket på dialogen med våra kunder om när uppstarten kan ske.

Ja, jag förstår. Det var intressant att få en inblick i det där, icke desto mindre. Sista frågan då, då tänker jag, har ni någon statusuppdatering vad gäller projektet Vallåskolan?

Vi fick ju en tilldelning för ett par veckor sedan i Vallåskolan och sen så blev den ju I understand. Well, that's all I had.

It's nice to see that you're starting to split up again. Lycka till och med allt ni tar er för framåt.

Tack för det. Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Men då, Karin, då tar vi och tackar för oss. Hoppas att ni har fått en hyfsad bild över vårt läge, det positiva läget i byggpartnergruppen. Så tack för oss, så hörs vi vidare under våren. Tack så mycket.