Careium AB (Publ)

Welcome to this live broadcasted report presentation regarding the second quarter of 2026 with technology-enabled care company Carium. Presenting today is newly appointed CEO Tove Kristiansson and CFO David Granat. After the presentation, there will be a Q&A where we are joined by equity analysts and viewers, investors can ask their questions in the live chat. Welcome Tove and David.

Thank you.

Thank you. Tove, before the presentation, since this is your first appearance as CEO at Carium, could you please give us a short presentation of yourself?

Of course. First of all, I'm really happy to be here, happy to meet with you, but of course, very happy and motivated to now have started as a CEO for Carrium. I would like to introduce myself, but also a bit about my motivation about Carrium. Looking back, what I've done, I come from the security business. I've been working with sales around an alarm center, and I've been 10 years in the med tech sector. Last 10 years I've been the CEO for Abilia and Abilia is a company within assistive tech and together with the team we have done a good growth journey where we really found the possibility to see how we can balance the passion for the user but also add some professionalism and business acumen to the company. And that has been a very successful journey, which led to that we and I had the possibility to build the assistive tech business area within MedCap. So I've been acquiring companies and growing companies. So yes, I think now when I take a step into Carrium, it's really nice to have that with me. And then the motivation for Carrium then. Let's start with the markets. I think this kind of market and industry is something that I really like to be in and I really like it because you are there as an industry working very close with the society and working close with the society with the challenge that we have people getting older and we get more elderly in our society. That's not a challenge itself. That's something good. We live longer because we are living a healthier life. And that is especially, you can look at the woman here on the slide. This is how we want to live it. We want to be independent. We want to live free lives. And we want to be active in our lives. So that means that we would like to find some kind of support for that to make sure that we can live and stay at home and live free lives as long as possible. That's one side of it. The other side of it is the health care system and the care system. They have huge challenges to find people to really take care of all these people. And that means that we need to support and find new innovations and find a way to combine product and services to make sure to be the digital chain between the carer and the user. And that's where we want to operate. That's where we and I think it's really nice to be part of Vicarium and this journey. The other motivation is of course Carium itself, the company. I love the company with all this entrepreneurial spirit and the local presence. We have good operation in many of the main markets in Europe and we can really see that with more than 500,000 users of our products and EVEN MORE, WE HAVE MORE THAN 300,000 CONNECTIONS INTO OUR OWN ALARM RECEIVING CENTERS. THAT IS SOMETHING FANTASTIC THAT GIVES US A POSITION THAT WE CAN WORK CLOSE WITH THE CUSTOMERS AND WE CAN GROW WITH INNOVATIONS AND WE CAN FIND THE RIGHT WAY TO FIND THE BALANCE AND INNOVATIONS AROUND SERVICES AND PRODUCTS. AND THAT'S WHAT WE'RE GOING TO DO. And as you wish or wish or I wish I am at least very commercial and business driven CEO and I love to build companies and with this kind of company where we have a good base to stand on and still a good growth potential and making sure that we can improve day by day. That's what I like. So yeah, that's me.

Thank you very much Tuba and please go ahead with your presentation and see you in the Q&A session.

Yeah, thank you. Me and David will do the report together and I will start with the top line growth and then David will take the cost side and the cash flow and we will together answer on the Q&A. So let's get started. Looking at the highlights, you can really see that we are growing. We are growing in a good way. We are growing in all regions. We are growing with service sales and we are growing with product sales. We're actually growing 24% versus last year. And as you see, we now have a number of connections to our alarm receiving centers above 340,000 and it's plus 6% versus last year. Still, you can also see that we are affected in the margins. We have done a lot of good service sales, but we also have some costs related to that that is affecting our margin in a negative way. Still, we have an EBIT margin improved to 6% and we have a free cash flow increase to 4.7 million. I think we have a good report and let us dig into the details into this one. I will start with the markets. Start with the Nordics. The Nordic markets, Sweden and Norway, we are growing with 13.6%. And I would say that the main driver of this growth is the new contracts of service within Norway. And you can see that that means that we are growing with 17% with services and we have products sales of 3.8 million. Here you can see that we have the effect in the gross margin. What you see when we go from 40.7 down to 39 is the investment that we have done to make sure to grow and take on this new contract in a good way. Another thing I would like to highlight when it comes to the Nordic is of course the ADDA framework in Sweden. As you know, we signed the contract on the 12th of May. And looking at this contract, what it is, it's actually that all the municipalities has together now a possibility to use the ADDA tender as their tender framework when doing their own tenders. What you can see in the ADDA is that we have been working and operating within ADDA for many, many years. We have been one of the main vendors in this tender and you can now see that more vendors and partners or competitors are into this. tender. So what means impractical for us that is something we will of course follow and we will do our best to make sure that we continue to be the main vendor in the Swedish market. Looking then to United Kingdom to UK. In UK, we are growing with 33.4%. We are growing both with services and products. We have a couple of new service contracts that we are growing with, and we also have a product sales related to, you know, the analog to digital SWIFT that we have in the markets. Still, you can see where the sales of products to the digital SWIFT also brings an installation service with very low margin. So that's what you can see is affecting us negatively in the UK market. So it actually takes us down to 36.9 in the gross margin. But we're growing on the top with service contracts in all these markets, which is really good. Netherlands. Netherlands, as you know, is a very service driven market. That's why also very interesting then to see in this quarter we can see a nice growth in products. Product is actually growing and we can see that that takes us up in a new mix in the Netherlands. And this mix, of course, also then affects the gross margin a bit. But take and have in mind that it's a really nice margin we have in this market. Other markets, mainly Germany, the Dutch, and also the France and French markets, that is something that is very product-driven, and we are growing with products. We have nice momentum in this market. We see that they like our products, and we are growing with our products. This is very, very nice and good to see. So looking into that, we have a net sales increase of 30.4%. We are up now then on 28.1 million in these markets. So yes, it's a very nice growth and have in mind that since it's product sales, it can go up and down from quarter to quarter in this market. Still, summing up the top line growth, we see that we are growing in a very good way. Growing with service contracts and product sales in a good mix and having the service sales with recurrent revenue that is giving us a good base to stand on going forward. And that's also why I want to highlight that we have the 6% growth in the connections into our alarm receiving centers. So top line is really good, and we are some kind of negatively affected in the gross margin due to the investments that we have done in the market. And that brings us to the cost side, and I hand over to you, David.

Thank you, Tove. And now an update on the profitability for the second quarter of 2026. EBITDA amounted to 34 million compared to 26 million for the same period last year, with improved EBITDA margins. EBIT increased to 50 million in the second quarter, giving an EBIT margin of 6% compared to 4.9% last year. We see improved profit levels driven by growth, while our margins reflected continued initiatives in product development and regional costs to support our growth. Profit for the period was 10.7 million and 6.5 million last year. With that, moving on to the cash flow. Cash flow from operating activities amounted to 26 million in the second quarter compared to 20 million for the same period in 25, mainly driven by improved earnings or profit. Cash flow from investing activities amounted to 21 million compared to 19 last year. And as a result, our free cash flow increased to five million in the quarter compared to one million in the same period last year. Our cash totaled 40 million and net debt was 166. And I would like to end this with an update on the hybrid loan that we announced yesterday. So in connection with the listing in 2021, Carrion Botana hybrid loan of 50 million from its former owner Doro. Yesterday we entered into an agreement to fully settle this loan by repaying 35 million and writing off the remaining amount. This write-off will be recognized as retained earnings in the third quarter and it will have no impact on the company's results. This provides carrying with a more efficient capital structure and enable us to pay dividends without the restrictions associated with this hybrid loan. And with that, I would like to hand over to Tove for a quarterly summary and some concluding remarks.

Yes, thank you, David. I think it's fair to say that we are on a positive side when it comes to the report. It's always a good place to be at when you have a good top line growth. Still, of course, we also see that we have a kind of pressure on the margin. and that is something of course that also show the result bottom line. But we also see that this kind of investments to make sure that we continue to take service contracts and continue to be there taking contracts in the UK markets for the digital switch, that is of course something we will continue to do. But of course, we will also see how we can work more smart or efficient in the organization. We also have an effect of the cost base with the initiatives we have done. And I think that's fair to say, but we also see the nice effect of those one. So if it's negative or if it's something that's on the growth journey, you can see it from both sides, I would say. And that makes us when looking ahead, the prioritization. As you know, I'm quite new into the company still, and this will be something to continue to be close with the customer, continue to be out in the market, continue to work close with the team in the organization and the board to make sure that we take out the direction for the company, make sure that we have a good growth journey, both when it comes to the offering and the way of working. So yes, we have high ambition for this company. We will continue, we will take out the strategy and take the journey in that direction. And I think that's going to be a fantastic journey to do. It's not going to be easy one. If it would have been, we would have been there already. But as a team, we have good experience and good competence and we will do this together. So continuously we will work with improvements and we will go step by step into this direction. And that I think would summarize what we were aiming to say today.

Okay, thank you so much Tove and David for this presentation. The quarter looks just as bright as the sunny weather outside. And by that, let me welcome Fredrik Reuterhall, who is equity analyst with the bank SEB. Please welcome Fredrik with your questions.

Good morning, Tove and David. Thank you.

Good morning.

So, I have a few questions. I'm going to start off with the gross margin there. It's a bit lower, as you talked about. But do you expect the gross margin to be under pressure for the rest of the year?

I mean we see it as kind of stable levels we see you know we have one big installation deal that we also mentioned in the report this quarter excluding that one we are on par with last year and I mean, we don't give any guidance into the future, but we don't see any big effects. And that's why we want to highlight this kind of big installation project. And there could be more of those also since, you know, the A to D to or analog to digital switches is ongoing and will continue for the rest of the year. So, but we are not very concerned. I mean, we are on par with last year with increased growth.

So, yeah. I have a follow-up question regarding that, but first, I mean, I know we talked about before regarding transport costs and material costs coming into H2. I mean, everything that happens in the Middle East region and so on. Do you see that you're going to have higher transport costs going forward?

Yes, I mean, I think everyone is suffering from increased cost, mainly in the COGS, I would say. We don't see it affecting us so much. during the fall. I mean, what we see is more kind of towards end of 26, early 27. But again, it doesn't impact our gross margins so much. So that is something I worry too much about. But yes, of course, we are impacted as everyone else.

Yeah, okay. So, I mean, the product sales in the UK and Ireland continue to be very strong. In 2025, it was up 12%. and now 33% in the quarter. And this switch that you're seeing now from analog to digital, is it a broad base, would you say? And is it like a sense of urgency there, or is it more like a one-off?

It's a sense of urgency. They're closing down the analog network end of the year and that's what the whole country is aiming for. So it's actually a tough game out there. We are many companies into this and everybody does what they can to make it happen. So yeah, it is sense of urgency and it is something that will happen and is happening.

So you would say that this will probably continue to push growth in the UK and Ireland for H2? Yes.

Yeah.

So I'm going to talk a bit more about Germany and France. Can you give us an update on how you work to take on competition, their market position, and then of course the strong product sales for H2 as well. Is it any particular customers buying the sales or is it more broad-based?

I would say that we have a good momentum and a good position in those markets. The customer likes us, they like our product and that's why we see we're growing. That's a quick answer on that question.

Okay, and how will you continue to take market shares there?

Continue to do the work we do. I mean, we have a lot of good meetings with our customers, good dialogues, and the products are really appreciated. So we will continue what we do with good activities and good meetings and make sure that the products have and give the effect that we want them to have.

And I can add to that as well. I mean, we are growing in Germany organically. So yes, initially we started with fewer customers, but yes, we are gaining more customers and they are growing over time. But it's more the same kind of buying pattern, and it takes some time to ramp up customers. So yes, I mean, I think we are having good traction and good development. Okay, good.

And then a short question on Holland. I mean, of course, the service sales continue to be stable there, but the product sales, as you mentioned in the presentation, jumped up to 6 million SEK. I mean, still small, but the large delta there. Is this the new run rate that we should model on, or is it more or less a good quarter?

I mean, again, I mean, we don't really comment on the future, but we have worked on getting into the product sales in the Netherlands for some time. Now we are seeing some traction and I mean, we have spent some time on it and we are getting through and we have no kind of visual on that. It will stop, so to say.

Good. And then regarding the other framework, maybe this is a tough question too, but my question is, how long does it take from, you know, you got a lead up until signing a new order within the frame agreement? Is it weeks or months or how does it work?

Do you mean ADDA or which one are you referring to?

Yeah, the ADDA framework in Sweden.

ADDA is actually a framework that you have over several couple of years and it goes back to municipality per municipality in which phase there are. So it's not going to be something that quickly runs into changing all contracts. It's going to be one contract by a contract and so Yeah, that's a boring question or boring answer. I think it's tough to say. It's a contract and it's a frame contract and we have more competitors in it, but we also have a lot of good municipalities that are happy with having Carium as a vendor. So let us take it step by step during the next couple of years.

My question was more like how long does it take for the client to decide, so to speak, within the frame agreement. What I'm after is like, is it a fast onboarding or is it taking time?

It depends on if I continue to go with the same vendor or if I decide to change to another vendor. so are able to do their own tendering outside ADA. So it's really different from customer to customer. It's extremely difficult to answer that in a straightforward way.

Yeah. And also you touched upon the competition within the agreement, quite a few companies in there. Would you say, I mean, how do you see on the competition there? Do you think it's going to be tougher to get contracts? I mean, you have a large market share in Sweden.

of course they're going to challenge us. That's their role, isn't it? Still I would say that we have a lot of customers that are very happy with Carrium and that will be something we will lean on and make sure that they continue to be happy with having us as a vendor and seeing us as a partner going forward. How tough it will be will of course be something we will learn and get insights of during the whole way going through the contract.

Yeah, okay.

So my last question is regarding the cash flow. It was on the low side, I mean, because of the increase in working capital. I saw that the count receivables are up roughly 21 million year to date, and a large part is the increase this quarter. And of course, I guess it was due to the strong product sales in UK and the onboarding of the large Norwegian customer. But can you talk us through how you will keep the working capital in check INCREASE CASH FLOW EVEN WHEN YOU'RE GROWING GOING FORWARD.

I mean we are working with all the parameters in the working capital of course. I would say that we are on the higher end. I mean we are having some deals where I mean it's a tough competition in the market and sometimes we need to invest something in the working capital to win some deals. It could be kind of payment terms and so on so I'm not that worried about us maintaining the levels of the working capital, but of course Sometimes we do need to make some investments in the working capital to grow our business as well Okay, good great.

Thank you very much. That was all for me.

Thank you. I

Thank you Fredrik Reuterhull at SEB. And let's welcome Alice Baer who works at ABG Sundal Collier. Please welcome with your questions Alice.

Thank you. Good morning Tove and David. I have a couple of questions and follow-ups. So starting just with the Norway onboarding clients. You said that the technical integration of this large client is complete and the Nordic gross margin is 39%. Now that onboarding is behind you, do you expect this cross margin to recover to historical levers? Is that a Q3 event or is it more gradual over H2?

I mean, the gross margin we're reporting is on the Nordic level, so it's a little bit difficult to guide on what is Sweden and what is Norway. We see some effects on the gross margin due to we have less financial lease, and I don't want to get into that kind of discussion again. What we see is that the technical integration is completed. We have had some one-off costs from the period of Q4 to Q2, I would say, Q4-25 to Q2-26. And that is completed. And now it's about getting efficient operations in our contract in Norway. So yes, there are some one-off costs that we have had during that period, which we don't have related to this contract going forward.

Okay, thanks. And then a follow-up on one of Riddick's questions. You said regarding the A2D installation projects that we might see more of these. Now this quarter is about 2% of sales. Is that a reasonable run rate going forward with installation projects, or will these increase more as we approach the A2D deadline?

I don't know, it's very hard to say and it's very kind of... We wanted to highlight that because it's basically a bigger installation project with low or limited margins. So that's why we wanted to highlight it. It's very dependent on what the order is, what the agreement is, but sometimes it's needed to win the product sales driven kind of A to D switches in the UK.

could be some could be you know it's very hard to it all depends on from deal to deal okay and then moving on to the the hybrid loan I say the associated dividend restriction was removed as you mentioned what's the board's thinking on capital allocation from here is a dividend policy something that you'd consider announcing you know after 2026 and how does that weigh against you know, funding continued growth or R&D or potential nominee?

Yeah, I mean, that's up to the board and the nomination or the general meeting to decide. We have just made sure that we don't have any restrictions regarding the dividends as of now, which we've had before. So yeah, basically, that's what we can say.

Okay. And just one more question on the loan. You said that the repayment will be mainly funded by existing cash, but that you may need to draw on the credit facility. Can you size the credit facility and what's the leverage level that you feel comfortable with?

I mean, I think we have, I mean, I'm definitely comfortable with the leverage around the two. I think our covenants is above three, or our covenants is above three. We have more than 200 million of undrawn facilities, so we have enough cash to do further investments and facilitate this deal.

All right. Great, thanks for that. Just two more. Firstly, just going back to organic growth, it was obviously very strong in the quarter, had a rather light comp. But I mean, excluding the comp, what's the underlying growth rate that you think is like sustainable across the group for H2 and into 2027? Particularly, I mean, the UK and Netherlands were quite product sales driven, which could be lumpier.

I mean, again, we don't comment on the growth going forward.

Okay. And then just a final question on margins. I mean, you previously guided that H1 margins would be pressured and normalized somewhat in H2O recover. OPEX has increased quite a bit this year. I mean, what would it take for you theoretically to get back to say 2024 levels, where H2 EBIT margin was about 10%, I think.

I mean, overall, I think before we go into the numbers, I just want to say that we are in the face of a company that we are in transformation. We are in change. So we will, of course, make sure that we do the investments we need or should take to make sure to grow. And how far we take, how quick we take down costs will be due to the strategy and the plan that we are setting later this year. So that's something we have to come back to.

Okay, perfect. Well, that was all from me. Thank you. Thank you.

Thank you, Alice, for those questions. And I have a question from a viewer, partially answered, I think. It says, previously, you mentioned the higher costs were driven by IT development and the onboarding of a larger customer. How is this progressing?

I think we have talked about today that we have a couple of good contracts that we are actually onboarding. That is a key part in our growth strategy. So that is approaching in a good way. And the investments we are doing for R&D and IT is something we will continue to do. It's going to be a need of innovations. We need to be there to find the right combination of tech and care. And so that is something we see as one of the key investments we will continue to have during the time going forward.

Thank you. If you could say one thing that is your key focus this summer.

this summer. It's actually to be really out meeting with all the markets and I think it's really about understanding the market and the business logic in the market and knowing the customer but also to understand my own organization to fully understand the in-depth experience we have and also the need we have to take the next step so It's a lot about listening during the summer and it's really about making sure that we do this together. So that's going to be my key focus now.

Okay, thank you. In society at large, there are a lot of discussion regarding technology. and that humans losing in interaction with other humans. You talk a lot about the importance of having technology working together with people. What do you see here? How will this develop going forward, do you think?

Oh, this is a fantastic area to talk about. I think this is really key spot on what's going to happen. We have to listen. We have to dare to try. We have to elaborate. What is the key balance? What is the right balance to have regarding tech and people? And it's going to be a big work for healthcare sector and care sector to transform, to find new way to work. And of course we want to be a partnership with them to understand how we can support that in a good way. But it's going to get back all the time what is the right balance.

So congratulations to a strong quarter and good luck going forward and thank you to David for today's presentation.

Thank you. Thank you everybody for listening in.