Fasadgruppen Group AB (publ)

and welcome to Fasadgruppen's second quarter result presentation. Here in the room, we have our CEO, Martin Jakobsson, our CFO, Kasper Tang, and myself, Magnus Blomberg, head of investment relations. With that being said, I hand over the word to Martin, so go ahead.

Thank you, Magnus, and good morning also from me. First of all, I would like to highlight that we had a tragic accident here during the summer where a colleague actually passed away during the line of duty in one of our subsidiaries. Tragic loss that has affected the entire organization. Our thoughts are, of course, with the deceased family, his friends and colleagues. We are actively working to minimize the risk of this ever happening again. With that said, I want to dive into today's presentation. So, some highlights for the second quarter then. We saw continued decline in the organic sales, which was mainly then continued affecting from new build and we also saw here in q2 that the results increased the adjusted EBITDA up to 132 up from 81 the same quarter last year the margin also increased by roughly 300 basis points up to 9.2 percent in the quarter so we saw rather flat organic development in the order backlog we'll get back to this later and in england we saw some delays from something called the building safety regulator but at the same time we saw an increase in the order backlog for clearline we'll get back to this later in the presentation Then looking on the important covenant fixtures, we saw that the net debt to adjusted EBTA pro forma came in at 3.36, up somewhat compared to Q1, still a continued focus to take leverage back down to 2.5. We also updated our agreement with our banks here, so we managed to push the covenant step down two quarters. We'll get back to that. Then looking on the net sales, in total there was an increase of 10% compared to last year. It was mainly on the positive side from acquisitions, roughly 18%. And organically, we saw a decrease of roughly 6%. It was mainly Sweden and Norway that stood out on the weak side. And Denmark and Finland stood out on the positive side. But in general, we saw continued low activity within new build, as I mentioned, especially in Sweden. Taking a look at our segments, the total solutions segment saw a decrease organically by roughly 12%. In total, it was down roughly 9%. Specialist solutions actually saw a total increase of 7.4%, but a small negative organic drop here by roughly 1%. and clear line sales came in at roughly 162 million somewhat affected by the bsr which i mentioned here initially so the bsr is the building safety regulator which is an authority in england that you could say more or less gives out building permits it's quite a new concept from 2022 And that authority has had extremely busy times and affected project starts for Clearline. Then looking on the adjusted EBITDA, as I mentioned initially, we came in at 132 million. Strong development compared to last year. Margin was also up. So I'm very glad to see the positive development of the results. Taking a look at the various segments, we saw margin decrease here for total solutions down to 6.6% compared to 8.4% last year. And a total adjusted EBITDA for the quarter of 48 million roughly. And for specialist solutions, we saw an adjusted EBITDA of roughly 51 million. But here we saw the different side where we saw an increase in the margin up to 9.4% compared to 6.4% last year. And Clearline came in on an adjusted beta level of 48 million roughly, a margin of close to 30%. In the quarter also we had some adjustments of roughly 11 million, which was mainly related to the earn-out revisions. On the order backlog side, we saw roughly a flat organic development. It was somewhat down then to 0.8%. We saw a continued healthy demand from housing associations and the public sector. The order backlog came in at all-time high, 4.3 billion, following especially a strong development for Clearline. In the various countries, we saw strong development in Sweden and actually negative development for the rest of Norway, Denmark and Finland. But in Sweden, which we've had some struggles with during the last couple of quarters, I'm very glad to see that development. And it's a team effort into being able to land all of these orders, which I'm very glad to see. We've also seen some indirect effects of the Swedish tax authorities that had a tax reduction incentive program started here in May, which is going through the full year of 2025. And when I say indirectly, it's mainly then because it's related to smaller villas, which is not our focus areas, but to some smaller competitors could focus more on that than leaving more for us, so to speak. We also saw that the order backlog margin increased compared to Q1 2025. That was especially then following the strong contribution from Clearline. and going into our segment segments we saw an decrease for total solutions was down roughly 6.2 percent organically on the order backlog site that is and then on the specialist solution side we saw a different development that increased roughly 5.4 percent organically and of course a strong order backlog for for clear Moving on to cash flow, we saw strong cash flow following a negative Q1. And I would say that it's following the seasonal pattern, more or less, where we see usually a ramp up from the start of the year until finalized at the end of the year. But we've also seen working capital improvements throughout the company, but especially in Sweden. So I'm very proud of the work that has been done in Sweden regarding capital development. Then looking on the financial capacity and the net debt, we saw that our average interest rate here in the first six months of 2025 decreased somewhat compared to the same period last year. We still have an interest rate period of one to three months, which is nothing unusual. And then on the important covenant we saw and somewhat uptick from 3.25 in q1 up to 3.36 here in q2 and as you can see on the bars in the bottom left corner here you could see that the new orange dotted line is the new agreed level meaning that the carbonate level is then pushed to quarters compared to what it was before. Then I want to stress once more our priorities. and the focus for 2025 here is profitability and the leverage until we give the full focus to growth once again so it's it's a re-affirmation of our priorities then moving on to some concluding remarks before we open up for questions so We have an all-time high order backlog, but I want to stress once more that there are still issues in the market, and I am cautiously optimistic, but the Swedish market is still having some struggles. Yes, we can see that on the modernization side it's improving, but on the new build side it's still very low activity. Then I want to highlight that once again, we saw some delays from the building safety regulator. There are still delays in the system going forward as well. This is not only for Clearline, it's a systematic problem for the full sector in England, not only on renovation, but also on new build. But at the same time, we saw strong demand for Clearline and the order backlog was clearly up. We had a covenant step down push to quarters, as I mentioned. We are also focusing on profitability improvements and deleveraging, as I mentioned. So to sum it up, we have a lot to be proud of, but much left to prove. I think with that, we open up for questions.

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