Fasadgruppen Group AB (publ)

Good morning everyone and welcome to Fasadgruppen presentation of the second quarter 2026. My name is Magnus Blomberg, Acting CFO and with me here in the room we have our CEO Martin Jakobsson. So Martin, will you please walk us through the report and after the report we will open up for some questions. So with that being said, Martin please go ahead.

Thank you, Magnus, and a very warm welcome and a good morning for me as well. And let's move to the first slide directly. And let me give you a quarter here in short. By our own standards, the earnings were weak. But a weak quarter and a weak business, I would say, are two different things. And we will show that today. So when I'm just at a beta level, we came in at roughly 108 million against 132 last year, which is down 19%. And I won't dress that number up. Remember here, we took Roughly 2000 colleagues in our organization took this business from we had minus 12 if you remember organic growth in Q1 up to broadly flat now here in Q2. And the margin came in at roughly 7.6%. And that's just a statement and I'm proud of the colleagues that did this. And I would say that the decline in the result is not widespread, it is concentrated. This is mainly in our Nordic contracting business and that's essentially in Norway. And I'll walk through the reasons later in the presentation. But every other part of the group I would say held its ground or improved. And that distinction matters because concentrated problems can be fixed. The other headlines we have here in the first slide is of course the organic order backlog, which was up 6.6% compared to last year, mainly driven then by Norway, Finland and the UK. Very strong increase in the Norway is noteworthy. And of course, we welcome new colleagues into the group here. We finalized this acquisition in August with Kro Rakene. So a very warm welcome to Kro Rakene. They are a roofing specialist, mainly focusing on industrial customers and also data centers. With that, we can move on. So if we just look on a rolling 12-month basis here, on our numbers. We see net sales of roughly 5.2 billion. We're at an adjusted EBITDA level of roughly 350 million with somewhat lower margin compared to the same period last year. And it's also noteworthy the cash conversion here is roughly 100%. So whatever else this year has thrown at us, we could say the business still converts earnings to cash. So, moving on. Looking at the net sales, it was down 1.8% in total. And of that, it was a broadly flat organic growth, minus 0.5. But remember here we had a divestment of Alnova that came in last year. And that also affected the quarter here. Then looking at our segments, I would say that the total solutions decreased by roughly 2.2%. And our specialist solutions increased by roughly 1%. And Clearline, our business in the UK, decreased by roughly 9%. But it's noteworthy here that if you remember, coming back to the organic growth, it was minus 12, as I said in the Q1, and now it's broadly flat. That's an important number for us that we are on the right path. I'd like to give an example. This is broadly like a hotel. The rooms that we had during the winter time cost money whether someone sleeps in them or not. And of course, now that the rooms have been starting to fill up again, we're making money in that instance. And as we see it, the earnings from those rooms arrive a quarter or two behind the guests. But with that said, Of course a number that stands out here is of course the decrease in clear line that's still affected by what we've told you before the building safety regulator delays still there. But that means that it's a queued demand and not a lost demand. And now we can extend just one last thing on the sales. I would like to stress here also In Sweden, we've seen housing cooperatives, property owners that have postponed façade renovations throughout the last couple of years are very active again. As we say, a façade doesn't care about interest rates. And what we've seen now is that with the With the lower interest rates level and a more, I would say, more confident market, we're seeing there's more projects to calculate on. And hopefully we'll see that in the numbers in the future as well, that Sweden is on the right path. With that, we can move on to the next one, please. Then looking on the adjusted EBITA, the earnings slide, I would say the one that matters most today. Looking at the segments and you see exactly where the problem lies. You see that total solutions more than came in at 3.3% compared to 6.6%. And I would say that this is mainly then focused on our businesses in Norway, which are A lot of them are in the total solution segments. And I would say that the two forces that have affected this, and I want to separate them. First, the market is weak. I would say that hand was dealt to us. But part of the decline is also self-inflicted, you could say. We've changed management. in several of our Norwegian companies in the last year or so. I would say different phases in a cycle demand different leadership. And a turnaround has its own requirements and we acted on that. So I want to be clear upon that. And changes like those always cost tempo and volume in this transition. But I would say that with the changes that we've made, we're confident in the future in Norway. So I mentioned earlier that the order backlog grew significantly in Norway, and that leads the way. So that's what we're going to keep track of ourselves, the volume increase, and with that, the margin will recover. and of course that's something that we will have a look at closely at in the future and hopefully you will do too. Then I would say it's also noteworthy here that the clear lines strong result and the margin that increased from roughly 29% to 38% is of course a very an impressive number. And Clearline is working in a very disciplined way and delivering quality products every day to our customers. So we're proud of Clearline in that matter. Of course, it's good to see that we're on the right path. But with that said, we can move on to the next slide, please. Now, looking on the order backlog, as I mentioned, it increased here organically. And this tells a bit different story than the income statement. And of course, we see that it's mainly on the specialist solutions segment and on the ClearLearn segment that we see the increase. And I would like to stress here once again that It's especially in Norway, Finland, and the UK that we've seen a very strong uptick in the order backlog. So we are eager to convert this strong order backlog into sales. But just a noteworthy here is, of course, that we're having a close look on the Danish order backlog, which had somewhat of a hit the last couple of months here. But with that said, I'd like to come back to that in the future to see where we're heading. Yes, so I think we can move on to the next slide, please. Then on the cash flow, operating cash flow of 52 million compared to 181 last year. with working capital as the swing. I would say when the production accelerated hard in April after the late start to the season, we said working capital built sharply. But it's more like a normal breathing of a project business entering high season. And I would say that it's amplified this year because the season started late and then fast. So it's more of a timing and not a leakage question obviously. And the number to double check here is of course that 98% in the rolling 12 months. So as I mentioned earlier, we're still converting a lot of earnings into cash. But remember, it's mainly in the second half that seasonally converts. All right, next slide, please. We had a net debt here of 1.6 billion down from 2.2 a year ago. Leverage of 3.3 times adjusted EBITDA. The rights issue that was concluded in the second quarter did a heavy lifting so to speak. And from here, I would say the leveraging comes the old-fashioned way, earnings and cash conversion. Next slide, please. So, as I mentioned here in the start, we welcome a new company into our world, ProRakkene. ProRakkene, a roofing specialist situated in Oulu in Finland, and was acquired through our subsidiary Rovacate. ProRackerna had a long-standing collaboration with Rovacate in the Finnish industrial and data center segment mainly, I would say. I would say that there's three things I want you to take from this deal. First, the logic. We have two established players who already work together, industrial customers. want more of a one-stop shop, we provide them with that. So demand is pulling the acquisition, not the other way around, so to speak. Secondly, it's destructured. It was financed from existing cash with part of the consideration settled through a long-term co-ownership instrument in Rovacate. So The seller becomes a co-owner in the business they're joining. And I care a great deal about this. I think it's a very, very strong signal. Because in a group of entrepreneur-led companies, the best acquisition currency isn't cash. It's a shared ownership of the outcome. And we talked about that earlier, but people water the garden they own a piece of. I think that's something to take with you. And thirdly, then the direction deepens our exposure to data centers and the industrial customer segments. And of course, data centers is especially interesting. One of a few construction segments that is in structural growth, especially in the Norwex. Then moving on, Just some examples here from ProRakkene. Shows the range of the capabilities and it's the range I want you to notice first on the left hand side. Two million kronor roof done in three months and on the right hand side 45,000 square meter data center roof done in 32 months, which is a unique expertise. And it means that we can handle all types of projects on the under roofing side. So it's very, very glad to see ProRackeli join us and we're eager to help more customers in the future. Then some concluding remarks before we open up for questions then. Backlog, stronger, 4.5 billion, and it's growing the fastest where we need it the most, so to speak. Recovery through the quarter was also gradual. We saw the end of the quarter was strong here. And the profitability focus continues, especially in Norway, where new leadership and a field order book, the high seas are now in the midst of it, have to do their work together. And of course, we added ProRaken, as I just mentioned, which is a step in the right direction for us. So from here, I would say mainly it's an execution story and judge us on that. I would say that Sweden's volumes will reach their earnings lines and that Norway's volume increases in the margin as well. And that the Danish order backlog is filling up would also be something that we're looking on to execute them. And finally, I would thank our 2,000 employees, especially. And the backlog that we built is built in a difficult market, but it's a heck of a job that's been done. Now it's up to us to execute it. will do that together. So with that, we open up for questions.

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