Elanders AB (publ)

Hello, and welcome to the air-handlers of the conference hall. My name is George. I'll be your coordinator for today's event. Please note, this conference is being recorded, and for the duration of the call, you guys will be in the listen-only mode. However, you have the opportunity to ask questions towards the end of the presentation, and this can be done by pressing star 1 on your tablet keypad to ask your question. If you require assistance at any point, please press star 0, and you will be connected to an operator. to begin today's conference. Please go ahead. Thank you, Josh.

Welcome, everyone, to the Lambos conference call. Together with me here, I also have Elstar Wilson, the Group CFO, and I'm also having Florian Beck here that will take over as CEO for the Lambos Group, 1st of September. And now I will go directly to slide number five in our presentation and talk about the second quarter. In the second quarter, we could see that the positive trend with improved demand continued, and we could show an organic growth of 3%. And if you adjust for RNC, the organic growth was 2%. And organic growth came mainly from Asia. but also Europe and North America showed growth, which was a very positive indication for us, and which makes us, it makes things look better when we go into the second half of the year. Also, adjusted EBITDA results continues to improve, and it increased to 181 million crowns compared to 167 the year before, and this was an improvement with 8%. and our adjusted EBITDA margin improved to 6.2% compared to 5.5 the year before. In Quarto, we also managed to renegotiate a huge large, sorry, a large lease agreement in the U.S. which combined with the opportunity to exit two other lease agreements in the U.K. in the beginning of the next year will give us the possibility to lower our cost base in 2027 with around 80 million crowns. If we then go to slide number six and look at our cash conversion, you can see that we showed a very strong cash conversion of 113%, which resulted in us bringing up around, bringing up 92 million crowns from our working capital, which helped us to lower our net debt, excluding IRA 16 with 19 million crowns. despite that we made a dividend of 24 million crowns, and we also had a negative currency effect of 56 million crowns on the net debt in the quarter. If we then go to slide number seven, look at supply chain solutions, we can show a strong organic growth of 4%, and if we just see it was still positive with 3%, Asia continues to be the main driver, but as mentioned before, very positive in the quarter was also that both Europe and North America could show organic growth. And if you look at the result, we can show continued positive development with both improved EBITDA margin and EBITDA result. And our adjusted EBITDA margin came in at 7% compared to 5.8% last year. and adjusted EBITDA result was 166 million crowns compared to 144, which was actually an improvement with 15%. If we then go to slide number eight to look at minimum packaging solutions, you can see that we had a challenging portal, which resulted in negative organic growth of 3%. and this had a negative effect on our adjusted EBITDA margin, which came in at 4.2% compared to 5.4% last year. The negative growth comes mainly from our German operations that has a very high exposure towards the German car manufacturers, which know that all of them are struggling with their sales, and that, of course, results in lower volumes of manuals. But on top of that, they're also doing cost saving programs that affect the number of pages in the manuals,

which have an extra negative effect for us.