ByggPartner Gruppen AB (publ)

Welcome to the Big Partner Group's presentation of Q2 2025. With us today we have VD Sture Nilsson and CFO Karin Mellegård-Järf. During the first part of the meeting, the participants are in listening mode and thereafter there will be time to ask questions to the speakers. During the question time, the participants can ask questions by pressing star 5 on their phone or use the window under the presentation on the web broadcast. Jag lämnar nu över ordet till vd Sture Nilsson. Varsågod.

Tack för det. Som ni hörde i introduktionen, Sture Nilsson är vd för byggpartnergruppen och jag har Karin Mellegård med mig här som CFO. Vi vill se fram emot att presentera kvartal två för er här i byggpartnergruppen. So let's get started. But before we go into the quarter, I just thought, as a short intro or repetition for you, just briefly, what the building partner group stands for. There is no change since last, it is noted that we are a clean-rooted construction entrepreneur who today works through three larger companies and runs a strong locally established business where entrepreneurship is the basis. We are established in Mellansverige through Dalarna as a base, where Byggpartner has its base, and then in Östergötland through the leading company in the county, Linnekerot, and then on the west coast through Flodens on the entire coast there. We now have a turnover of 4.8 billion, we have approximately 900 employees. When we look at the focus area, we would like to talk about collaboration. We have come back to this several times. Collaboration means that we strive to develop the conditions for a project with our customers in an early stage and then work in open collaboration during the project stage. It is very focused on working together in an early stage with our customers. Träbyggande är en viktig del av vårt erbjudande. Vi har stor erfarenhet av att jobba med trästommar och träbyggnationer. Vi har också en samlad spetskompetens i en särskild enhet som heter Dahlhusgruppen. I vårt hållbarhetsarbete som vi jobbar med på alla plan egentligen kan man säga så är ju trä en viktig komponent för att jobba med det. Då tänkte jag att jag går in i I would like to say that I am very pleased with our development in the second quarter. We have continued to develop in a positive trend that we have had for a long time, but often it is confirmed during the quarter. So positive signs can be seen directly in the quarter. If I start with the volume, we have greatly strengthened our project base during the quarter. We have received, if we start with that, several new larger cooperation agreements, where we work in a first phase, in a design phase. And these larger jobs that you have started up in trust, if we then continue as the plan is in phase 2, where we have written an entrepreneurial agreement, then I expect that it will happen in the coming years in these projects. The potential order value in these first phase 1 projects that we have now started up, we estimate around 2 billion in revenue. It is incredibly positive in the long term that we have started up these collaboration agreements. Then you go into the order entry. It fluctuates a lot between quarters, but now we have actually found that we have the second quarter in a row with a record order entry for us at 1.8 billion. This means that we have strengthened the order stock as well over time. So even if we have many new businesses, we continue to be very selective in our expansion. So profitability is foremost when it comes to our growth, that we have those criteria. The turnover is unchanged compared to earlier. But when it comes to the result, we continue to improve our result. We have an EBITDA of 51 million, which means 4% in margin. This is our highest result both in kronor och marginal hittills i konserven. Det är vi otroligt glada för. Dessutom är vi glada för att alla tre segmenten, alla tre huvudbolagen, visar förbättringar. Det här gör ju att vi har en stabil finansiell ställning med en låg belåning idag i bolaget. So that's the introduction I wanted to take from the beginning. And then I thought I'd go into, before Karin goes into the numbers here more, to go into some of our projects that you have held during the period. Reconstruction and construction of Gävle Hospital. It means for us a renewed trust that in a first phase of cooperation, work together with the region of Gävleborg. Under the spring, the customer has made a new change in their handling of this project. We have previously worked in Phase 1 and now we have made a change from the customer, where we have been given the confidence to continue working in Phase 1. This change was made because the project has been greatly developed in terms of scope and from the customer's perspective, there is a budget of around 1 billion for this project. Vi hoppas på att jobba vidare i den här fas 1 ett halvår till så att vi någon gång runt årsskiftet hoppas på en produktionsstart och då innebär det också en orderingregistrering i samband med det. Det här känner vi oss väldigt glada för att fortsätta jobba med den här planeringsfasen i Gävleborg. Ett annat stort samverkansprojekt där vi också har startat i en första fas 1 It is in Linköping, in an official meeting, where the quality criteria were crucial for us to maintain this project. So we have started a phase 1 design now of a completely new multi-sport hall in Linköping. And even there, it is not in order yet, but we calculate the same here that a production start occurs around, or shortly after the change of year. And then it renders in that case an anti-virus contract. Det här är MLA och fastigheter, det kommunala fastighetsbolaget i Linköping. Vi gör den här affären med och det är en helt ny multisportarena med över 13 000 kvadratmeter yta som vi ska bygga i det här. Det känns väldigt spännande. Om de här två nu samverkansprojekten så kan vi också berömma att här däremot så har vi en fast order och det är Vallåskolan i Halmstad. There we have an order registration, an agreement for production, and the production will start up here now in the fall. We have in Flodéns, as this one who has taken this job, great experience working with school projects. And specifically also in Halmstad, where we have a project in place since earlier, which takes on this big project now with the Valdeskolan. We see that in the future as well. Then I can just touch on the fact that tree building is an important part of our work. This is an example of a couple of ongoing projects, both in Motala, a municipal office building, and also in a large sports facility in Pålänge, where we build with tree troughs. There is also a new project in Gothenburg, Skräbro, which is a nursing home. with high ambitions about the sustainability factor, but it is also a large, advanced tree trunk that is the basis of that project. So I want to continue to work on trees, because it is an important part of our offer and our expansion today. Another example of a project where sustainability is at the top of the agenda, with high ambitions about recycling and choice of materials. I brought up a few examples here, both in Fager kommun, we build a school, renovate, Vi har ny produktion av en förskola i Laholm och även en lokalrenovering i Linköping och Lundbergs. I de här projekten också som många andra, men här präglas det av en stor ambition från kundernas sida att lyfta hållbarhetsperspektiven ytterligare. Det är för oss otroligt viktigt i vår utveckling att vi har också krävande kunder inom det här området. It's a bit of a new project and intro, so I think I'll hand it over to Karin, who will tell us a bit more about how things have gone in economic terms as well.

Exactly.

And as we have just mentioned, we can see here when we look at our annual income that it is on a record level now in quarter two and goes up to 1.8 billion. If we compare that with what we had for inflation for quarter two last year, it is a doubling. When you look back at the rolling 12, our order entry totaled 5.2 billion, which we will compare with the order entry we had in 2024, which actually went up to 3.4 billion. Vår marknadsefterfrågan inom vårt segment har under kvartalet stärkts lite och det såg ni precis på när Sture berättade om de projekten som vi också har erhållit. Men vi ser att samtidigt så är prisnivåerna fortsatt pressade och det innebär att vi måste fortsätta att vara selektiva i vår inställning till nya anbud. Men det är också därför extra roligt att i de samverkansuppdrag som vi har erhållit i kvartalet så är det kvalitet och referenser som har varit avgörande. Vår orderstock visar i vår framtida produktionsvolym i bekräftade åtaganden och till följd av den höga orderingången som vi hade både i detta kvartal men även i föregående kvartal så har den ökat. När vi stänger kvartal två så ser vi här att den uppgår till närmare 4,3 miljarder vilket ska jämföras med 3,2 miljarder som vi hade vid årsskiftet. I vår orderstock så finns det en stor andel med fas 1-projekt. And that means that we are working in an early phase of planning with a goal that in the future we will be able to draw a final entrepreneurial contract for the major work that will be carried out in the next step. These missions, which I would also like to mention, are registered first when the entrepreneurial agreement is signed. And that means for us that the total and underlying pipeline is not visible in these diagrams, but together with what we have ordered, with the reported order block, it makes it a stable platform for us for the future. In summary, we note that our selective attitude in combination with the fact that we prioritize collaboration projects means that our current project base has a high potential for profitability and a lower risk level. If we then look at the distribution of our order stock, how it is distributed percentually, we know that the building partner group historically has had an overwhelming share of society. And we see that also in this quarter. We have won and have been able to sign projects such as Vallåskolan and Skräbro, which of course affects. But the proportion of social housing goes up to 57%, the commercial goes up to 35% and the exposure to rental rights goes down to 7%. Our turnover in the quarter goes up to almost 1.3 billion, which is in line with previous years. The turnover in our segment is stable and they are also in line with our expectations. We have previously talked about the tough market situation in Östergötland. We can now see that it has eased some things and our segment that is active there, Ollino-Ekero, has a positive growth in the quarter. Our result continues to be successfully improved and profitability stabilised. And of course, it's great to see a positive result in the new quarter in a row, which we are very pleased with. And in the same way as our order entry, our result in the quarter is also on a record level. This means that the result in quarter two goes up to 51 million, which is a margin of 4%. If we compare this with the fallout in Q2 2024, we had a result of 34 million and a salary of 2.6%. What you do not see here, but which the board will come back to, is that the entire segment improves its results in the quarter. Our financial position continues to be strengthened even in this quarter. Kassaflödet utvecklas positivt och slutade med plus 21 miljoner. Vår bedömning är att kassaflödet från löpande verksamheten bör fortsätta att utvecklas positivt och följa vår resultatutveckling. Solidariteten förbättrades under kvartalet och slutade på 29,8 procent. Vår nettoskuld i förhållande till EBITDA minskade till 1,1. So with that, Sture, I'll hand it over to you to tell us a little more about how the segment has gone.

Yes, I'll take a little short about our three main segments here. Our largest company, Byggpartner, continues to show good profitability. We have been up around 5% in profitability during the autumn and winter. And we now have a margin of 4.6% in the quarter. But to be around 5% there, we are very pleased with profitability in Byggpartner. In addition to the order flow, which is in balance in the quarter, the big thing when it comes to the pipeline in the partner building is that the large collaborative projects that have started in phase 1, which is not visible in the stack here, but that is what makes it really strong in the pipeline in the future, that we have so many phase 1 projects in a partner building. Byggpartner has a very high proportion of collaborative projects at all, so basically all the volume in Byggpartner starts with phase one before we get the order in. So we are still happy with the development of Byggpartner. And Linnékerot, even there we have the greatest success in the quarter, is actually the multi-sport arena, that we have started up projects with it in Linköping. Lönsamheten och Säpernivå motsvarar förväntningarna det här året. Lönsamheten är på 3,8 % nu jämfört med 2,6 % förra året. Den är något lägre som helhet jämfört med Ålin Ekerots historiska nivåer som varit högre. Med den orderstock vi har idag så ser jag att 3,8 % är enligt förväntan det här året. Sen kan vi lägga till, som inte vi säger i rapporten, att efter periodens utgång, efter kvartalsutgång, så har vi i Olin-Ekro tecknat ett rejält stort samverkansavtal, ytterligare i en fas 1, som vi tyvärr inte kan offentliggöra ännu. Men det kommer också att komma in i vår paragraf framåt här. Det känns som en väldigt positiv utveckling med två större samverkansavtal som vi har fått in under kvartal 2 i början på kvartal 3 nu. We are starting to see an opening in the market for Olin Ekeroth, which feels promising. Clodens, unlike the other two companies, has a high real order volume already in the quarter. We have received two large projects in Halmstad and Vårdbolet in Gothenburg. So we have a very strong order block registered at 1.2 billion now in the company. Then it is joyful after these tough years we have had in Flodens with profitability that we now have a pipeline and a ongoing project base that makes us show positive results now for the second quarter in a row in Flodens. And it is decisive for us that we successively come back to profitability in the company. It was about the three companies. To sum up the first half or quarter, it is natural to say that we have strengthened our pipeline for the future. We have new cooperation agreements that we have talked about here now, which gives a long-term security that we have received. And then we have a record high order entry. If we look at the whole first quarter, as Karin said, we have nearly doubled the order entry compared to last year. And that is also very important for us in the short term. We show a margin of 4%, while we show that we do not have a uniform salary in all three segments. So we have continued potential to reach our 5% which is the target. Men 4% i kvartalet var en viktig delsteg för oss som vi är väldigt nöjda med. Så med den kvartals sammanfattning så säger jag att vi går vidare och tittar framåt nu. Vi fortsätter att jobba med våra strategier, samverkan, erbjuda trälösning för våra kunder. Vi har en bit kvar till våra 5%, men målet är tydligt. Lönsamheten ska fortsätta och vara fokus för oss. Men vi tycker att vi är på rätt väg. Tillväxten, även om det var en stark tillväxt i kvartalet, så är det fortsatt med en fokus på att det är med begränsade risker vi jobbar med tillväxten. Det är det som är en summering som jag tycker vi har summerat tillsammans kvartalet. Med det så lämnar vi över till antal frågor.

Om du vill ställa en fråga, tryck stjärna 5. Good morning Karin, I hope you can hear me.

Yes, that's good.

Congratulations to start with for a good report. I was going to start with the order entry, which was of course strong during the quarter. A lot of this can be attributed to Flodens. With the knowledge that this segment has been weaker in recent years, can you say anything about the margin in these new contracts? Can you imagine that they are in line with orders from, for example, Lekko datacenter? Can you develop a little about that?

Yes, it is true that we have a much weaker history in Flodens than the other companies. But with the business plan and the goal we have, that even in Flodens we reach 5% in profitability. So these projects we are now taking in, De ger möjliggör att vi ska ta steg mot våra 5% i lönsamhet. Absolut. Sen kan jag inte kommentera om det är exakt samma lönsamhet som i andra projekt som du frågar om. Men det är en sund förutsättning för att skapa våra lönsamhetsmål i de här projekten ändå.

... ... ... ... ... ... ... ... ... Strävar efter eller behöver nå för att kunna nå till ett mål vad gäller rörelsemarginalen?

Det är ju bruttomarginalen som är det avgörande för att nå våra 5%. Det som saknas för att nå våra 5% det är ju på bruttomarginalen det ska upp. Så är det ju. Det är där vi ser skillnaden nu mellan våra olika segment. I byggpartner har vi en högre bruttomarginal compared to Olin Ekeroth. That is where we see potential to increase it forward. It is important to say that the pipeline we have enables an increased gross margin, of course.

And then you mention somewhere along the lines a positive market development here. But in general, my impression is still that the market is Quite slowly, despite different stimulus measures from the Riksbank, etc., it doesn't seem to change much. What do you think is needed to lift the general construction market?

What we don't talk much about here in our pipeline is housing, since we have such a low exposure to housing today. Of course, as an industry, it is still the great nightmare that housing construction will not start. And even if we have a lower inflation, cost increases in recent years have been significant for housing construction. And we don't really see that in our perspective, how quickly it will start. Then we think that on the industrial side, where we have, and also social facilities, there is still a positive view on the future of construction. But if we look back at the last year, there has been incredibly high competition that causes price pressure in the market, because many actors have been forced to adjust their goals for profitability in order to stay on the track in the future. And that is why it has been so important for us to be selective, not to go into wrong projects. Men tillbaka till, vi ser ändå inom de segment vi är en begynnande positiv utveckling i marknaden redan nu.

Det gör vi faktiskt. Vill du höra?

Tack för svar. Det var det jag hade för nu. Ja, tack. Det finns inga frågor på telefon, så jag lämnar över ordet till talarna för eventuella frågor från webben.

Precis, och på webben har vi fått in några frågor, så jag läser dem i den ordningen som de har kommit in, Sture. Och då är den första frågan, kommer ni att behöva öka personalkostnaderna eller ryms de framtida projekten inom existerande organisation? Ja.

The answer to that is that the more fixed costs for the administrative structure and leadership, we are ready for with the setup we have today. It is our mobile personnel costs, our professional workers and our project management team. It is a mobile cost that will increase with increased volume. And so it is, it is always a mobile part in our industry. Men den fasta strukturkostnaden, den kan vi, den är stabil.

Sen har det också kommit en fråga, kan du beskriva lite mer hur du ser på samarbetet med Ekodatacenter framåt?

Ja, vi har faktiskt, vi har jobbat nu i många år tillsammans i Falun med vår anläggning där och som vi har kommunicerat tidigare så har vi då signed an agreement for a fifth and sixth hall in Falun to complete the investment in that facility. And they are now taking place, the migrations. At the same time, it is known that EKDC has acquired a facility in Kvarnsveden, Bålänge, with the intention of continuing to develop its data hall business there. And we have lived for many years with a cooperation agreement with Ekodatacenter för att kunna långsiktigt planera fortsättningen. Det avtalet har vi nu under sommaren förlängt så att vi har ett långsiktigt samarbetsavtal framåt för att fortsätta att kunna jobba med planering inte minst i kvarsedeln. När det är dags för konkreta order och annat återkommer vi med det men vi har ett fortsatt och förlängt samarbete djupt med Ekodatacenter.

Kan man läsa mellan raden att ni upplevt en förbättring av förutsättningar och efterfrågan i slutet av kvartalet? Och har detta också upplevts fortsätta in i Q3-perioden?

I siffrorna kan vi inte säga att vi har haft någon påverkan av den här kortsiktiga senaste signalen. Men vi kan säga att inför sommaren så fick vi påfallande fler förfrågningar från kunder And also around the summer than what we had earlier this year. So we have noticed that it is an increased activity in our segment where we work, which was clearly visible before the summer. It gets a long-term effect for us, that there is no short-term effect we see on it. But it is positive.

And can you describe a little more how you experienced or experience how price discussions with customers have developed?

Where price is a larger component in the handling, it is still very pressing. We see many projects now that we are interested in, but we choose to give up or put ourselves on a level where the end result is often margins and price levels that we are not interested in. It is still a risk in the market that many projects are still taken at very low prices. That's what we're trying to avoid. However, when we're in a phase one agreement with the customers, we notice that many customers need to lower their budgets and get a different cost frame for their buildings. That's where we can really add something, that we're with and project and control a desired budget in a different way than being there early. Yes.

I'll continue here. In Olino and Ekeroth, they have shown a continued discipline and changed positions that have affected order entry and order book, but at the same time, they have an increase in revenue of about 5 million and the result has increased by 5 million. Would you say that it feels like this company in the group can now accelerate its expansion and profitability development?

Yes, if I answer again around Olin Ekeroth, it has been a very stable company for a long time. We have general control over our projects, so the fact that the margins have gone down is an effect of a very price-pressed market in Östergötland, where we have chosen to abstain from many projects, just as we have said before. But we are well equipped for that growth and careful lighting Vi har ändå anledning att se var förhoppningsfullare en bolagets utveckling där framme. Men det ligger i naturen i vårt bolag att vara försiktiga med tillväxten, utan den ska vara med lönsamhet.

Efter flera tuffa år har Flodéns, nu så som nu beskrivet, vänt kurvan efter omstrukturering till lönsamhet, givet målet för gruppen om en marginal på 5%, så hoppas vi på betydande potential i lönsamhetshänseende i denna del av gruppen. Har Flodéns positiva trend i bred mening fortsatt in i detta kvartal?

That's too early to say. This quarter, quarter three, has started with a semester period and there has been very low activity. Nothing has changed, but the image we give of Q2 is the one that we think is relevant when we look forward. We assess our projects forward-oriented all the time and nothing dramatic has happened lately.

The last question here is that you are in broad sense a project company, which will of course affect the cash flow between the quarters. Have you considered developing a goal of solidity to prove the stability and growth with limited risk that you want to maintain over a cycle?

When it comes to cash flow, as we have said earlier, we do not bind capital to our own project development. So over time, our vision is that cash flow should reflect the results we have. That is the first thing. Our goal has been to strengthen solidity for several years, and it is now up around 30%. due to the debt, to go over to another goal, which is net debt in relation to EBITDA. But the bottom line is that we are very much in favor of restoring that stability. And that the stability is at 30% is very important for us. We have that level. That's all I can say about that.

And that was all the questions.

Yes, now we've had a bit of a show, just the two of us and Karin and I, but then we're done with the questions on the web and we've heard your questions. We thank you for listening this time and hope you look forward to listening to us again in November when we come back with the next quarter's report. Have a nice day. Thank you very much for being with us. Bye.