Coor Service Management Holding AB

Welcome to Coors Q1 presentation for 2026. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to President and CEO Ola Klingenborg and CFO and IR Director Daniel Warnholz. Please go ahead.

Good morning everyone and welcome to course Q1 report. The agenda for today is first I will go through a short CEO update and summary of the Q1 quarter and then hand over to Daniel to go through some of the financials. Then we'll summarize with key takeaways and end up with a Q&A session. You see some of the key numbers here on the right of this slide, where we have an organic growth in the quarter of 0.4%. We're happy to see an EBITDA margin of 5.5% up from previous quarters and a continued solid cash conversion. So a short summary of the quarter. It remains a high activity in the market in all of our different geographic regions. We won a new contract with Helsingborg. We made an expansion of our contract with Saab and extended our contract with Alema. All of these in Sweden. In Norway, we signed a new contract with Jutun and extended our large contract with Ekinoplant. There's a lot of activity in the Norwegian market. And then in Denmark, we see the effects from the earlier communicated contract losses where it affects the top line primarily. Other than that, we have an organic growth in Sweden of 4% to 5%, the same in Norway and in Finland. So really strong growth numbers there from those markets, but burdened a bit by a negative development in Denmark as previously communicated. We see continued improvement in the EBITDA margins, as I said, up to 5.5%. Strong cash conversion also this quarter above our target of 90. And we see a reduced leverage down to 2.3 times EBITDA, which is a level that we haven't seen before. as low in a while. Also on our environmental targets, we make a lot of progress. And in the quarter, we were awarded a gold medal for our carbon emission initiatives. And that's an important part of our triple bottom line efforts. We also held a capital markets day in March where We reconfirmed our financial targets and also outlined a lot more about what we're doing now to make sure that we reach those targets. So that's a short summary of the quarter. Handing over to you, Daniel, to take us through the numbers.

Thank you, Ola. And if we then turn to an overview of the key business KPIs. In the first quarter, organic growth is 0.4% for the group. Importantly, Sweden, Norway and Finland were all growing well from an organic point of view and roughly in the 4 to 5% range. But we have negative organic growth of minus 12% in Denmark due to the previously communicated contract losses. EBITDA margin for Q1 is 5.5. That is an improvement compared with last year that ended at 4.7%. Margins continue to improve with strong results in Sweden, driving the margin improvements for the group. Cash conversion, as Ola commented, continues to be solid at 92% on an last 12-month basis. And leverage, also an LTM number, is at 2.3 times adjusted EBITDA, and that continues to decrease. Turning down to the P&L, net sales ended at 3 billion Swedish krona, that is 1.3% below last year. But as said, organic growth was positive 0.4 and we had a negative impact of 1.7% from foreign exchange. Adjusted EBITDA amounted to 167 million Swedish kronors, which gives us an adjusted EBITDA margin in the quarter of 5.5%. And both EBITDA in absolute and margin is an improvement compared to same period last year. Items affecting comparability during the quarter amounted to 24 million and mainly come from restructuring costs, M&A transaction costs for contemplated but not materialized M&A, as well as integration costs for the newly started contracts in Norway. Net income is 69 million, and adjusted net income when we add back amortization amounts to 77 million Swedish kronor, both improving as well versus last year, same period. On the LTM numbers, we see that net sales is now 12 billion, 442 million Swedish kronors. And organic growth is 2.6%. And FX was negative over that period with 2.0%. In total, slightly lower net sales versus full year 2025. The last 12 months adjusted EBITDA level is 625 million, which gives us an LTM EBITDA margin of 5.0 versus 4.8% for the full year 2025. Adjusted net income finally for the LTM period is 287 million versus 274 million for the full year 2025. Moving then into our segment and looking at the Q1 period, starting with Sweden. Organic growth was strong at close to 4% in the quarter, primarily a result of favorable activity level across all of our different businesses, but in particular high variable income in integrated facility management and property services. Adjusted EBITDA and margins are improving with strong performance across all of our different businesses in Sweden. And as we mentioned, Kors signed a new contract with Helsingborg municipality and extended a contract with Alema in Sweden. An overall good activity level in the Swedish market. Turning then to Denmark. During the quarter, sales in the Danish operations declined due to negative organic growth of minus 12%. and negative for an exchange effect of minus 4%. The negative organic growth was due to the previously communicated ended contracts, which are estimated to also negatively impact coming quarters. This also negatively affected adjusted EBITDA for the quarter that amounted to 22 million Swedish krona versus last year, 34 million. and adjusted EBITDA margin 3.7% versus last year 4.8%. Although we benefited from lower cost as an effect of the cost reduction done last year, we were not able to fully compensate for the loss of sales in the quarter. Activity in the market remained high with a number of large contracts up for tender in the near future, both in our own portfolio and in the market in general. Turning to Norway, during the first quarter, sales in our Norwegian operations increased by a total of 3%, with organic growth of over 5% and foreign exchange effects of minus 3%. Organic growth was due to startup of the newly won contracts, Variable volumes were lower than last year as expected and we expect to see a continued normalization compared to previous year during the coming quarters, where in particular Q2 and Q3 2025 saw unusually high levels of variable volumes. Operating profit, adjusted EBITDA for the quarter amounted to 20 million, same level as last year. The operating margin remained at 3.7%. KOR extended its important contract with the Equinor plants and won also a new contract with Jyto. The next six months will see a continued ramp up of several new contracts in Norway, such as with Avinor for cleaning services at Oslo Gardermoen Airport and Sjage Egendom with Kål acting as a Toyota provider for Skøyen Atrum. Starting up new contracts may have a slightly negative short-term impact on the margin for the Norwegian operations. And then finally turning to Finland, during the quarter sales declined by 1% in Finland compared to the year earlier period. However, organic growth was positive and amounted to close to 4%, while foreign exchange effects were negative and amounted to minus 5%. Operating profit amounted to SEK minus 1 million, compared to zero last year. The operating margin adjusted to the beta margin was a negative 0.8, so this is a positive 0.3% last year. If we then turn to cash flow and balance sheet, we continue to see solid cash conversion at 92% on an LTM basis. Working capital is a negative minus 8.4%, which is in line with the seasonal pattern in prior years. And leverage continues to decrease and is at 2.3 times every time. During the quarter, Cora announced that we had completed the placement of new senior unsecured bonds amounting to 750 million Swedish krona. The new bonds have a five-year maturity and carry a floating interest rate of 3 million STIBOR plus 2.05% per annum. The bond issue was well received and was oversubscribed by a healthy margin. That also means that with that we have retired the outstanding three-year bond that amounted to 500 million. which matured in 2027, and that one was redeemed in full in March. And accordingly, Core has no loan maturities until 2028. And with that, I hand it back over to you, Ola, to sum up the quarter.