Fasadgruppen Group AB (publ)

Good morning everyone and welcome to the presentation of Fasadgruppen's second quarter 2024 results. In the room today we have our CEO Martin Jakobsson, our CFO Kasper Tam and myself, head of comms and sustainability Adrian Westman. I will hand over to Martin for the presentation and then we will conclude with a Q&A.

Martin. Okay, good morning, everyone.

So I'm pleased to announce our Q2 results this morning. Some of the headlines that we'll go through more in detail later are then that we see tough competition still, especially in Sweden. However, we've seen some glimpses of hope here, especially in the Stockholm area. We'll get back to that more in detail later. We have taken measures now, depending on the results that we announced this morning. And there we have changed some of our CEOs, and we've also taken our cooperation between the subsidiaries to another level in order to stem the results here. And we've also, for the first time in Fasaljubes, the help of great entrepreneurs. And that is also a strategy that we will delve deeper into in the coming slides here. In the Q2 results, we've also seen an increase of our important covenant of net debt to EBITDA, which is above our current target of 2.5. We are working then in order to enhance that in the coming quarters here to back to our goal and during the quarter we've also signed a lot of letters in tents which is great in in the coming quarters we also hopefully see a lot of these acquisitions being signed we'll get back to that later in the But looking then first at sales, we had a total decrease here of half a percent in the quarter compared to the same quarter last year. Organically, we saw some revenue down of 4.2%, which is then mainly then from the Swedish operation, or actually only from the Swedish operation, as Norway, Denmark and Finland are all growing organically. Looking on the adjusted EBITDA level, we saw a margin here at 6.2% in the quarter compared to 9.7% in the same period last year. And the main reason for the drop here is, as we've spoken about now for at least a year, is the increased competition situation, which is then stemming from, we say that new build sector is heavily affected in Sweden. And with that comes a lot of, you could say, market entry participants from the new sector going into our main market, which is the renovation market. And just to give some perspective here is that we've seen at least a doubling of the amount of tenders given from new companies, so to speak, in certain areas. So that's just to give some flavor to how very pressured the market is at the moment. And yeah, with that said, I mean, the new-build sector is not something that is new for that it's heavily affected. But there are a lot of positive signs in the market with the interest rate environment and several other of our customers stating that there is an opening in the coming, let's say, quarters. It's too early to tell exactly when.