Gränges AB (publ)

Good morning, ladies and gentlemen, and welcome to this interim result presentation for the full year result of Grenges for the year 2023. I'm here together with our VP of Communications, Investor Relations, Orlando Hyllén, and also with our CFO, Oskar Hellström. And Oskar and I will together take you through today's material, which has been distributed also on Grenges' homepage and is available there. So 2023 is a year that we're quite proud of, and it also ended in a good way. So we think that the fourth quarter is a very strong finish to what is in fact a record year. Some highlights from the fourth quarter itself. is that we had stable volumes, slightly down, in what must be characterized as a hesitant market. I'll get back to the regional split in a second. And we saw, according to the customer segments, we saw stable automotive demand, but an HVAC market that was characterized by destocking a return to a normal seasonality. And right now, of course, it's winter. in the Northern Hemisphere and therefore not so much HVAC sales. As we have now in the last, I suppose, eight quarters or so, we were able in the fourth quarter of 2023 to continue to offset cost increases with price improvements and productivity improvements. in a good way, which also then helped us post a very strong operating profit, which is up 61% to 245 million SEC over 153 in the fourth quarter of 2022. We also had in the quarter good sustainability performance and also many other good points, for instance, a good cash flow. And we will highlight all those points as we go through this call today. If we zoom out to the full year of 2023, you can see in this picture the development in the various segments.

Market in automotive.

And as we are the strongest or as the largest portion of our business in Eurasia, that has a beneficial impact. effect also on Grengis' group volumes, so of 7% then. But we had, like I already alluded to, a very weak volume development in the HVAC market, which largely is driven partly, of course, by hesitant end customer demand, but mostly by the stocking in the entire HVAC value chain, including distributors and other downstream stockholders. which follows, of course, an equivalent strong upturn in restocking in 2022, right? So first we had COVID, then stock was built after COVID, and now stock has been depleted or hopefully normalized during 2023. But the effect on our volume, as you can see, is 18% for the whole group. But in total, these two effects plus effects in other segments sort of level out, and the whole group had a shrinking volume of about 3% last year. If we zoom out even further and look at some years in succession, We have on page four here the long-term development of Grenges since 2011. And as you can see, we've had since 2021, which was a strong restocking year after the COVID pandemic, had a relatively weak volume development. But we have also at the same time had a very strong EBIT development, which of course then corresponds to also a strong margin development. And that is during the years of 2021, 22, and also 23. Something firstly, that we're quite proud of. And secondly, is a strong sign, I think, of the value that Gragas delivers to our customers. Because without that value, we would not have been able to have the strong pricing performance and also the strong productivity performance that is evident in these numbers. Now, I know that many of you are very interested in the more detailed walkthrough of the Q4 results. And there I will turn over to Oskar Hellström, our CFO. So go ahead, Oskar. Thank you, Jörgen.