Green Landscaping Group AB (publ)

Thank you and welcome to today's earnings call. As I mentioned, my name is Johan Ostrom and I'm also joined by our CFO, Markus Holmström, who will manage the financial section of this presentation in a few minutes. But as always, let me tell you about the most recent performance and put that into context. Now, the first quarter of 2026 showed a strong organic growth of 11%. And we also saw an improved underlying EBIT A compared to prior year with adjusted for capital gains. And we also had a stable cash flow in the quarter. Now, if we are adjusted for items for comparability, the EBIT A amounted to 27 million, and that is an increase of 29% compared to previous year. Then the performance across the group is a little bit of a mixed bag. We saw in Sweden there we delivered clear earnings improvement and that is driven by the actions we have implemented. Other Europe reported a season with stable profitability and in Norway we continue to see a weak performance in a challenging market. And of course, we are not satisfied with the overall outcome for the company, but we do remain fully focused on improving the profitability in particular in Norway. And also during the quarter, we have invested in one strong company through the acquisition of Finke Landschaftenstraße in Germany. So I think that's the perspective that it's a mixed bag. So Sweden and other Europe was performing and we had some challenges in Norway. why we overall saw an organic growth of 11% in the first quarter. So let's move into the presentation. Just a brief overview of the Green Landscaping Group. We are a leading company in the ground maintenance and landscaping industry in Europe. We operate in a very large and attractive market with structural growth in the marketplace. And also, we do have an entrepreneurial culture inside our company and that is supported by a decentralized structure that works pretty well for us as we have local customers and we're active locally, close to the customers on the ground. And then to top it off, we do see a value creation through a proven M&A strategy that we chose to invest in the best companies in the industry. So moving on to the long term performance, I think it's wise to zoom out a little bit and look upon the performance of the company for the last few years. And we can clearly see that we have had a steady growth over time, while the year 2025 was to some extent a challenging year for us in terms of growth and also in terms of profitability. But Given the first quarter where we are back to 11% growth, I think that's a pretty strong sign we are sending that we are back on track. In terms of profitability, again, 2025 was a challenging year for us. But right now we have been focusing heavily for the last one and a half, two years on improving the situation in Sweden. And we do see an improved performance in Sweden. And we do see a stable performance in the segment we accord to as Europe. while we do have some challenging market conditions in Norway, and that's what we're focusing on going forward. And next slide. So to sum up the first quarter, if we look upon the net sales, there was a total growth of 14%, amounting to close to 1.4 billion SEK. And also, as I did mention, we have an organic growth of 11% in the quarter. Profitability wise or EBITDA, there we saw a decrease of 25%. We were landed at 30 million versus 40 million a year ago. And as I did mention, we see a stable improvement of margins in Sweden and other Europe, while we do have some challenges in Norway. And also putting that in perspective, prior years EVTA included a 19 million capital gain on the property divestment we made in Lithuania. So really, when I'm comparing the underlying performance, I am reducing the 40 million by 19 million. And that's where we see the improvement in the profitability. Now, cash flow was OK. We do have a heavy cash flow because we are not that we see some room for improvement in terms of cash flow. So the cash flow for the first quarter was stable, but slightly below our own expectations. And that also means that from the financial leverage perspective, we are at 3.1. That is from our perspective on the high side, and we will focus on that one going forward so we can get it down to a more, from our perspective, acceptable level. And then, as I did mention, we are continuing our successful expansion in Germany, and we completed one investment in Finke in the beginning of the year. And then of course, the last bullet there, the divestment of Svensk Jordelit, that's a part of the program we set out one and a half year ago in order to improve situation in sweden now uh svensk yordlet is a profitable company that we choose to divest because of the way the company has the way we have developed and the way that the yordlet have developed we came to the conclusion that that company would probably be more successful outside the landscaping group so that's why we choose to divest that company in the first quarter of this year Now, looking into the Swedish market, then we saw for the role in 12 months, we see a decrease of 3% to 2.5 billion SEK, where we have an organic growth of a negative one. While profitability wise, we increased to 1% to 115 million SEK, and there we have a margin of 4.6%. Now, the first quarter performance, they actually saw an increase of revenue of 5% to 609 million. And also we saw an increase in EBITDA of 9% to 39 million. And that gives us a margin of 6.4% in the first quarter. And I think we should keep in mind that the first quarter is typically a low season for what we are doing. and having a 6.4% in the Swedish market from a historic perspective, that is actually quite a nice number. And then moving on into Norway. And as we clearly can see there that the net sales have been decreasing by 6% to 2.3 billion SEK, where organically we are a negative five. And then of course, profitability wise, we do see a significant decrease in profitability in Norway. which leaves us with a margin of 3.4, and the decrease is 60%. So we have an 80 million EBITDA margin in Norway, and that is clearly below our expectations. And then for the first quarter, we actually saw an increase in revenue in Norway of 5%, while we saw a decrease on EBITDA with a negative margin of 3.2%. So what's really going on in Norway is that we are having a difficult market situation and we have two companies who are not performing and we are working on improving the situation in Norway quite significantly. And then looking upon other Europe, So for the rolling 12 months, we can see that we have a net sales increase by close to 40%. And right now, that means they are up to 1.5 billion SEK. So it's becoming substantial to us. We have an organic growth of 2%. And then, of course, we saw an increase on EBITDA by 26% to 280 million. And that keeps us with a very strong margin of 18.2% in the other Europe segment. Then for the first quarter, equal to Sweden and Norway, that's the low season we have in the first quarter, but still we see a significant increase in net sales by 60% in the quarter, while we saw a decrease of profitability to 15 million, and that gives us a margin of 4.9. And I think here we should keep in mind that the prior year EBIT A for the segment of Europe included the sales of a property capital gain of 19 million. So one should bear that in mind when you compare the numbers. And then, of course, we completed, as I did say, one investment in the first quarter. So that's pretty much for the other Europe segment. And then just a short introduction to Finke that we closed in the beginning of the year. It's a company that was founded back in 2010. It's based in Borken in Nordrhein-Westfalen in Germany. and they do provide classic groundwork, sewer construction and landscaping services to a broad array of customers. And size-wise they are, I would say, a sweet spot company for us with about 12 million euros in annual revenue. So we do welcome Finke into the group of companies we already have. So by that, I think that concludes my part of it. And then I hand over to Marcus, who will walk you through the financials. So Marcus.

Perfect. Thank you, Johan. And I will cover the main financials. First quarter showed net sales growth of 14%, totaling at 1.4 billion and bringing our rolling 12 months sales to 6.4%. For the quarter, organic growth was, as Johan said, 11%. Structural effects contributed with 4%, and impact from exchange rates was negative with 2%. As Johan also mentioned, all segments delivered organic growth in the quarter, largely driven by higher demand of winter services in Sweden and Norway, while colder weather had negative impact on demand for landscaping services. Also reflecting on structural growth in the quarter, as we usually, or for the first time, have divested company, and it's not the strategy shift we have, but looking at structural growth 4%, putting it down to, we had 7% contribution from acquired entities, and the sales of Udelit impacted negatively 3% in the quarter. Reported EBITDA was 30 million, a decrease primarily due to the comparison period included a capital gain of 19 million. But adjusting for this one, we had underlying organic improvement in our EBITDA numbers of 29%. EBITDA margin came in at 2.2% and rolling 12 months 6.8%. And we are of course not satisfied with this number and we are strongly focused on executing on the actions we have implemented in Norway and continuing to deliver the positive trend we have in Sweden. I will go into more details on cash flow in next slides, but operating activities amounted to positively 137, broadly in line with last year, and financial leverage sequentially increased to 3.1. And here we're also heavily focused on delivering the cash home in order to be able to deleverage in the coming quarters. The order backlog amounted to 7.7 billion, which is higher than last year. And the increase is actually noted in all regions. But it's important to know that the order book fluctuates between quarters and should not be viewed as short-term leading indicators. Earnings per share in Q1 declined to minus 1%. 0.36 compared to 0.33 last year, mainly due to lower EBITDA in the period, while lower cost of funding had a positive effect. Looking at cash flow, in line with seasonality, operating cash flow contributed heavily positively in the quarter at 137 million, Following the negative development in 2025, we're not fully satisfied with our outcome and have a high focus on delivering reduced working time, delivering on our action to tire less working capital. Progress have been remained, but it made in the forecast, but it may remain a focus area for us. Rolling 12 months cash flow from operating activities amounted to $340 million. Looking at the cash flow bridge for total free cash flow in the quarter, operating activities contributes with 137. Then we completed acquisition, totaling of cash consideration 112 million in the investment on Finke, Landschaft and Strave in Germany. which Johan also presented earlier. And then we also had a small portion of earn-out payment in the quarter, including in that number. We also divested Svensk Odelid, which was divested, and it had an annual revenue of 117 million. And the divestment strengthens the group's focus on our core operation within maintenance and landscaping for public customers. That brought in plus 37 in our total cash flow. So the net from acquisition and divestment was negatively 75 million. Then we had the capex totaling, including lease amortization at minus 18. And we did not repurchase any shares in the period, totaling the free cash flow from the period at negative minus 15. and as i mentioned earlier working capital development and cash flow generation continue as always to be a focus area for us and we're committed to deliver on our actions Financial leverage increased sequentially in light of our net debt being at 2.5 billion and leverage at 3.1, which is above our financial target. And our ambition remains to return to the target, driven by improved operational cash flow and, of course, improved earnings. However, I would like also to underline that we maintain good headroom to meet our financial confidence in the funding. And our maturity profile for our financing. We did a lot of activities in this area during last year. We broadened our financing base with issuing a bond, and we also refinanced the bank debt to much more favorable terms and conditions compared to the previous ones, which helps us lowering funding costs going forward. And we're very pleased with how we were received in the capital market of the bond issue. And it signals the strong confidence the credit market has in us. Concluding my part of the presentation, looking at our financial target, leaving 2025 at the negative growth numbers. We're pleased to see that we're turning a shift here and have been rolling 12 months now, plus three. And on the EBITDA margin side, very positive with the development we see in all the task orders in Sweden and the stability in earnings in other Europe. And we're focused and committed to turn the trend in Norway Rolling 12 months EBITDA margin ended up at 6.8. And finally, the leverage at 3.1. We also have a fourth financial target, which is dividends. And in conjunction with the Q4 report, the board proposes to the annual meeting that no dividend should be distributed for the fiscal year of 2025, which is in line with the recommendation and decisions from previous years. And our AGM will be held at the 7th of May in next week. And with that, I will hand back to you for a few closing remarks before we open up for questions.

Yes. Thank you very much, Marcus. And as I said, it was a mixed bag in terms of the performance. We are back on growth. That is very good to see. And in terms of the local markets, look upon the performance of Sweden, Finland, Lithuania, Germany. I'm quite happy with the performance and the activities we had done there. We do have some challenges in Norway and we are addressing those in a diligent way, I would say, where we actually have a new management, new country structure in place. So we have some new players there and made some significant changes to the structure in Norway and in order to improve going forward in the Norwegian market. So by that, I think we open up for the Q&A.