Coor Service Management Holding AB

Welcome to Coors Q3 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 Patrik Sjöland. Please go ahead.

Hello everyone and welcome to Coors Q3 report 2026. The agenda for today, I will be going through the first CEO update from me, then Patrick will take us through the financials. We'll then summarize with some key takeaways and finish off with a Q&A session. So summarizing Q3, we had a top line, which is largely flat versus last year, slightly negative. And that decrease is driven by previously communicated contract losses in Denmark. Sweden and Finland are growing. And Norway is flat versus Q3 last year. And this is quite good work, I think, as we were comparing to 2025 with very high variable volumes in Norway in Q3. So good work from Norway there. Looking at EBITDA, we continue to improve our EBITDA by 12%. and our margin improves from 4.5% to 5%. This represents for Sweden an all-time high EBITDA for a Q3. So it's a strong performance on the EBITDA side. and we're improving our earnings in Sweden, Norway and Finland. So good work, I think. Turning to the commercial and operations side, we appointed a new commercial director where we appointed Stine Solheim, who has been the Norwegian director the head of our Norwegian business, into a commercial role at the group level. We've had quite a bit of success with our sales in Norway, so we think that that will be an interesting choice that will propel us to the next level of growth. We made a customer satisfaction survey, which showed that we increased our customer satisfaction index to an all-time high level as well. And the same with our customer net promoter score. So we're doing some good work out with our customers, it seems. That is proven also by the fact that we extended quite a few of big contracts including ABB, CGI, the student housing of Oslo, part of Kaulinska and UPP Vele in Denmark. and we are participating in a lot of tenders. There's many things going on in the market and we are actively participating. To do that and to realize our strategy, we've also strengthened our sales force and recruited quite a bit new sales people, both on the central level, but also in our markets. Part of our strategy has also been, or is, to strengthen our property business, which is our technical maintenance services. And one example of that is that during the quarter we launched Core Connect, which is a newly launched 24-7 monitoring center that will enable us to provide new digital services for our property customers. We're also, as we have previously communicated and described, a quite comprehensive program for operational efficiency. And as you see in the margin numbers, that seems to be paying off. Particularly on the AI side, we are working with an agents program that we're rolling out across our business. And as a fun fact, yesterday we won an innovation award from the International Facility Management Association for our AI agents. And I think AI is a good opportunity for productivity and service development within our industry. If we look a little bit forward, we continue to see high market activity, a lot of things going on in the market, and we are focusing on what we previously communicated, cross-selling opportunities, efficiency improvements, margin enhancement, and growth where we're putting in more resources to produce organic growth. We see positive development in Sweden, Finland, Norway and we're expecting that to continue and in Denmark we continue to work on our stabilization efforts. And as a highlight for Denmark, I think we have lost some revenue. But if we look at the bottom line effect, there is actually a particularly smaller effect on the bottom line than you perhaps could expect with such a loss of revenue. So really good work from the Danish business to maintain profitability. With that introduction, I'd like to hand over to my CFO Patrik.

Thank you. And we start with an overview of the business KPIs. In the third quarter, organic growth is minus 1.5%. Importantly, Sweden and Finland grow 3-4% organically, while Norway is having a slightly negative organic growth of 0.9%. We are having a negative organic growth of 15% in Denmark due to the previous communicated contract losses. The EBITDA margin for the Q3 is 5% which is an improvement comparing to last year's third quarter. Margins continue to improve with improvements primarily in Sweden and Norway driving the margin improvements. Cash conversion continues to be solid at 87% on the LTM basis. Leverage on the last 12 months numbers are also in favor. 2.3 times EBITDA continues to be stable. On the P&L, net sales ended at 3 billion SEK, which is in line with last year. Organic growth was negative with minus 1.5% and FX positive with 1.6%. Adjusted EBITDA amounted to 149 million SEK, which gives an adjusted EBITDA margin in the quarter of 5%, which is an improvement from last year's 4.5%. This leads to that the EBITDA in absolute numbers compared to last year's increase. Items affecting comparatively during the quarter amounted to 40 million versus 21 million last year. 27 million relates to the arbitration decision regarding a customer case in Denmark from 2022, as mentioned in quarter two that it will be booked in quarter three, which is this quarter. Net income is 48 million SEK and adjusted net income when adding back amortizations amounted to 56 million SEK. On the LTM numbers, we see that the net sales is at 12,363,000,000 SEK. Organic growth is 0.7% and FX negative with 0.4%. The LTM adjusted EBITDA level is 646 million SEK which gives us an LTM EBITDA margin of 5.2% versus 4.8% for the full year 2025. Adjusted net income for the LTM is 264 million SEK versus 280 million SEK full year 2025. Looking at Q3 country by country, we start with Sweden. Organic growth of 3.5% in the quarter, primarily a result of favorable activity level and higher income in all three areas, IFM, cleaning and property services. Adjacent EBITDA and margins are improving with strong performance across all our business in Sweden. During the third quarter sales in Denmark declined with 15% versus last year. The negative organic growth is minus 15% was due to previous communicated ended contracts which are estimated to also have negatively impact upcoming quarters. This affected the EBITDA negatively for the quarter that amounted to 17 million SEK versus last year 21 million SEK. The EBITDA margin is 3.0% versus last year's 3.2%. We can see in the quarter that the measurements being executed to size the business to, for the time being, a lower revenue are having an effect, as the EBITDA margin 3% is almost in line with last year's percent, despite the lower sales. As mentioned earlier, an ERC to the amount of 27 million related to the arbitration decision related to a customer case in Denmark from 2022 is accounted for in the Q43. Denmark continues to work to adjust their businesses with the lower volumes with a balance to position themselves to future growth. Turning to Norway, during the quarter the organic growth was slightly negative with 0.9%. The negative growth was due to the high variable volumes from last year in Q3. We are now during Q3 year 2026 can see a normalization of the level of variable volumes. The new contracts have continued to have a positive impact on the volumes and profitability. During the quarter, these contracts largely offset the decline in variable volumes compared with last year. when variable volumes were unusually high. This resulted in a more balanced contract portfolio in Norway for the time being. Adjacent EBITDA for the quarter amounted to 36 million to be compared to 29 million last year. The EBITDA margin increased to 5.4% versus 4.6% in last year. Turning to Finland, organic growth was positive and amounted to 4% and the foreign exchange effects were very 0.1%, very immaterial. Operating profit adjusted EBITDA amounted to 11 million to be compared to 10 million in last year. EBITDA margin was reported to positive 6.2% which is exactly in line with last year. Finland continue to focus on increasing their organic growth. Moving on to cash flow and balance sheet. Continued solid cash conversion at 87% on the LTM basis. Working capital is minus 7.8%, which is in line with the seasonal pattern in prior years. And leverage continues to be stable for the time being in the quarter reported 2.3 times EBITDA in leverage. And with that, I hand it back to you Ola to summarize.