Fasadgruppen Group AB (publ)

Good morning all and welcome to this presentation of our results for the first quarter here at Fasadgruppen. In the room we have our CEO Martin Jakobsson and our CFO Kasper Tam and myself Magnus Blomberg. With that being said I hand over the word to Martin. Please go ahead.

Thank you Magnus and good morning also from me. Thank you all for joining this 2026 Q1 results call. So let me start with the headline. Q1 2026 was a cold quarter. In the Nordics, we saw some of the coldest weather in, I would say, several decades, which, of course, materially restricted our production. And in the UK, we saw continued regulatory delays, as we have spoken about several times now, from the building safety regulator, which we denominate BSR. And they adjusted a bit. They came in at roughly 5 million, I guess, 77 million a year ago. That said, the underlying business is in a stronger position than these headlines numbers suggest, I would like to say. Our organic order backlog grew by almost 15%, mainly driven by the UK and Norway. And we've also successfully completed our rights issue. And we have gotten roughly 488 million net proceeds. It was oversubscribed as well to roughly 142%. And we take that as a very strong vote of confidence from our shareholders. So a tough quarter on the P&L. But however, on the leading indicators such as the backlog and the balance sheets, we are going the right way. Then taking a look on the rolling 12 months here for Q1 numbers, you see an increase in both sales and the adjusted EBITDA levels as well on the margin. backlog is also significantly higher than the same period last year, as well as cash flow and cash conversion. So even though Q1 was cold, we see improvements in the last one month. Then taking a look on the net sales here in the first quarter, we saw a total sales of 994 million, which was a decrease by roughly 15% compared to the same period last year. And on an organic growth level, that came in at roughly 12% below organically. As I mentioned, it's mainly the cold that has struck hard in the Nordics and has, of course, affected our productivity on these kind of projects that we do mainly on the outside of a building. And regarding BSR, we will talk about Clearland separately in the coming slide. I would also like to highlight here that In a market where new production is lower, which mainly has been in the last couple of years, we have been more tilted to renovation. And I would like to say that renovation is more important. Seasonal in that sense that most of the renovation projects are done during the warmer months. So with a lower new production levels, we become more seasonally affected. Then taking a look on different segments, we see here the total solutions decreased by roughly 10% down to 519 million compared to 574 last year. On the specialist solutions, we saw the sales go down by roughly 15% to 361 compared to 425 last year. And then Clearline, our UK business, decreased by roughly 34% in Q1, down to 150 million compared to 174 last year. Here, the BSR effects loops. Next slide, please. As we mentioned, the adjusted EBITDA was significantly lower compared to last year. Taking a look on the various segments, we can see that We are down compared to last year in all segments. But of course, both total solutions and specialist solutions are negative in the quarter. And to remind people about this, The last year, the conditions temperature wise and also on the weather side was much more beneficial for us compared to this year. Then looking on the clear line, we also saw that the result was down there. The margin came in at roughly 30% compared to 35% a year ago. This is, of course, as I've mentioned several times, mainly connected to the delays that we will talk about. We saw some adjustments of roughly 10 million in the quarter, mainly comprising with earn-out revisions. Then on the order backlog side, we came in at 4.5 billion here at the end of the quarter. And we saw a total 12.4% growth compared to last year. Organically, the increase was roughly 15%, as I mentioned, where the majority of this, of course, comes from Clearline, which you see have almost 80% higher order backlog compared to last year. So it's partially good demand, but also, of course, driven by the delays. If you just look on the total solutions and specialty solutions, it's no major changes in those two order backlogs. But I want to highlight here that our customers are signing our contracts. They trust us to deliver. The work is there. And the question for 2026 is execution, not demand, I would like to say. Next slide, please. Then our cash flow, we see business ramping up following the seasonal pattern, and the working capital improvements that we do continues. And if you just take a look on the 12-month basis, as I mentioned prior, compared to a lot one year ago, it's roughly 200 million increase compared to last year. Next slide, please. Now, then, on the Clearline situation, I'd like to spend a moment here, because I know this is on a lot of your minds, regarding BSR Gateway 2, which is just for you to understand regarding this kind of gateway, so you know what this means is. There are three gateways. It's the first gateway one is regarding to planning. Gateway two is when the project actually starts and then project three is in the finalization. And it's been statutory that in these renovation projects, the time for these projects should take at maximum eight weeks. But now on average, they are on 36 weeks to get the approval. However, as you remember, in December we sent out a press release stating we've gotten some approvals. I would say most of them will start in Q2 this year. And regarding BSR, they also sent out a statement here in April with an action plan where they target to decrease this average processing time from 36 weeks to 12 weeks by December 2026. So that is, of course, very good news for us. And they have also then mentioned concrete measures, the BSR. They have this dedicated multidisciplinary team with account managers doing a recruitment drive. And they're also doing something what they call a mechanism approval with requirements. That allows projects to start safely, but still remaining to having some technical questions to be resolved. But it's very important for you to understand that no projects have been cancelled and the underlying demand is strong. I would like to highlight here that Claremont is very well positioned for when these processing times normalize. And we have more visibility forward, I would like to say, than we had, let's say, six months ago. Next slide, please. Some concluding remarks then before we open up for questions. First then about... Q1, it was a cold quarter and BSR delays continued. Secondly, underlying business is intact and the order backlog is growing. That means that the fundamentals in our operations work. Thirdly, I would like to highlight here that our balance sheet is stronger than prior to the rights issue. This gives us room to act long term, to say yes to the right projects and no to the wrong ones, and to be ready when the right M&A opportunities come along. And that's how we've built Fasolgruppen since 2016. This is our 10-year anniversary and how we intend to continue going forward. And then lastly, now we're in the middle of the peak season, I would say, here in production. And we are doing that with more agile organization. It was implemented last year. I'm pleased with the performance of that so far. And we have a platform model that has proven itself across borders here. With that said, I'd like to give a special thanks to our employees who delivered quality and reliability to our customers during these difficult conditions. And I'd also like to thank our shareholders for the broad support behind the rights issue. With that, I think we open up for questions.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Max Baco from Seb. Please go ahead.