Coor Service Management Holding AB

Welcome to Coors Q2 presentation for 2026. During the questions and answer 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 Patrik Scholland. Please go ahead.

Hello everyone. Good morning. Welcome to our Q2 report. The agenda for the day is first I'll make a short update of the current trading and account business. Then we'll go through the financial numbers with Patrik and then we'll summarize with some key takeaways. And then we will open up for questions. We'll skip right into the CEO update here. We see a continued market activities with a lot of things going on throughout our markets and we have made some good extensions. We have a good retention work in our Swedish, but also in our other markets. Particularly in our cleaning segment, we've signed a lot of medium and small-sized contracts in the Swedish market. In Norway, we've had quite a bit of success in the public space. And in Denmark, we prolonged our important and large IFM contract with DSB. and there is a lot of tenders where we are present and where we are working with some really large tenders. The growth in Sweden and Finland continues to be strong, and we work at 3-4% growth there. While in Norway, we have a negative growth in the quarter, which we communicated earlier is due to fluctuations in the oil and gas business, where we had a really, really strong quarter last year. Denmark continues to be a challenge, and we are decreasing versus last year. Our EBITDA margins continues to develop towards our financial targets and we hit 5.5% in Q2 and our cash conversion remains in line with our financial targets. The leverage is at 2.5, which is stable, which is very strong, I think, given that we have also made dividends during the period. We had a capital markets day a couple of months ago where we presented our strategy, and we are working now with all those initiatives outlined during that day. And they are progressing well. In Denmark, we do a lot of improvement activities to get the market back on track and I think they're doing a good job there to handle the decreased volumes. We've also had some changes in the management where Patrik has joined as a CFO. We've had a new HR communications director and in line with what we discussed at the Capital Markets Day, we have strengthened our leadership within our property technical maintenance business with a new manager for that area. With that, let's turn our eyes to Q2 numbers and I hand over to Patrik.

Thank you, Ola. We will start with an overview of the business KPIs. In the second quarter, organic growth is at minus 3.3%. Sweden and Finland grow at 3-4% organically, but we are having a negative growth of 15% in Denmark due to previous communicated contract losses. And in Norway, we see a negative growth of 10% due to, as also already indicated, high variable volumes starting in Q2 last year, which kind of affect that. Strong quarter, the EBITDA margin of Q2 is 5.5%, which is an improvement comparing with last year that ended at 5.2%. Margins continue to improve with strong results in Sweden, driving margin improvements combined with stable margins in Norway with lower revenues versus last year, which is a good indicator. In Finland, we see an improvement from 1.7% to 2.6%. Cash conversion continues to be solid at 90% on the last 12 months basis. And as Ola said, strong. And with that said, we also did the dividend lately. Leverage also an LDN number at 2.5 multiple continues to be stable. On the P&L Net sales ended at 3.1 billion SEK. That is 2.5% below last year. Organic growth was negative with 3.3% and FX positive with 0.8%. Adjusted EBITDA amounted to 170 million, which gives us an adjusted EBITDA margin in the quarter of 5.5%. Both EBITDA in absolute numbers and margin percent is an improvement compared to last year, despite lower net sales. Items affecting comparability during the quarter amounted to 13 million compared to 22 million last year, which mainly relates to restructuring costs in Denmark and to some extent startup costs in other contracts in the Nordic region. Net income is 87 million and adjusted net income when added back amortization amounts to 95 million SEK, both improving well versus last year. On the LTE-M numbers, we see that net sales is at 12,361,000,000 SEK. Organic growth is 0.9% and FX negative with 1.1% in the total over net sales versus full year 2025. The LTM adjusted EBITDA level is 630 million SEK, which gives us an LTM EBITDA margin of 5.1% versus 4.8% for the full year 2025. Adjusted net income for the LTM is 302 million SEK versus 274 million SEK full year 2025. Looking at Q2 country by country, we start with Sweden. Organic growth of 3% in a quarter primarily relates to a favorable activity level and higher income in all three areas, EFM, cleaning and property services. Adjusted EBITDA and margins are improving with strong performance across all businesses in Sweden. CORE signed extension contracts with Skanska and Boralis and Göteborgs hamn and Stockholm live but also we can see that a number of customers within the small and medium segment for cleaning was also signed if we Move on to Denmark. During the second quarter, sales in the Danish operations declined with 15% due to the negative organic growth of minus 14.5% and a negative forex exchange effect of 0.7%. This negative organic growth was due to previously communicated ending contracts, which are estimated to also negatively impact coming quarters in the year. This also negatively affected adjusted EBITDA for the quarter that amounted to 16 million SEK compared to last year, which was 27 million SEK. An adjusted EBITDA margin of 2.7% versus last year, 4.0%. The work with decreasing the cost base is ongoing, but with still lack of revenues, the adjusted EBITDA negative compared to last year. Activity in the market remained high and Denmark are participating in a number of tenders and will be participating in future tenders both in our own portfolio and in the market in general. In the second quarter, Core signed an EFM agreement and extension with DSP for three years and also Fredrik Berg's Multimunicipality. Denmark continuously work to adjust their business with a lower volumes with a balance to position themselves for future growth. On July 7 in this year, Core received a final arbitral awards in a long-term running arbitration proceedings with a customer that has been pending since 2022. Awards was in favor of the customer, which have a financial impact of 20 to 25 million in the Danish company, which will be recognized in Q3. This will be treated as a non-recurring item as it does not have anything to do with the present Danish performance and business. For Norway, during the second quarter, the organic growth was negative of 10% and foreign exchange effects of 4.7% positive. The negative organic growth was due to the variable costs from last year from Q2 and onwards. We are now during 2026 can see a normalization of the level of variable volumes. Operating profit adjusted EBITDA for the quarter amounted to 35 million compared to 37 million last year. The operating margin remained at 5.4%, which is in line with the last year. Hence, the contract portfolio develops well. The earlier one contracts with Juton and Avinor is progressing successfully. In the second quarter, Norway also signed cleaning contracts with Gertrum and Drammen Kommune. Turning to Finland. During the second quarter, sales was 3% higher in Finland compared with the second quarter last year, due to the contract started in Q1. Organic growth was positive and amounted to 4%, while foreign exchange effects were negative and amounted to 0.9%. Adjusted EBITDA amounted to 4 million SEK compared to 3 million SEK last year. The operating margin was positive with 2.6% compared to last year, 1.7%. The activity in the market is high and there are several tenders in the market in the quarter and upcoming quarters which Finland will participate in. If we go to cash flow and balance sheet, we can see that we have a continued solid cash conversion with 90%. Working capital is negative with minus 7.6%, which is in line with the seasonal pattern in prior years. The leverage continues to be stable and strong at 2.5 times EVDA. We are also considering that we have done a dividend, which kind of includes in the cash conversion of 90%. And with that, I hand it back to you Ola to summarize.