Inwido AB

Hello and welcome to today's webcast with InVido, where President and CEO Fredrik Møller and Peter Wellin, CFO and Deputy CEO, will present a report for the second quarter of 2026. After the presentation, there will be a Q&A, so if you're calling in and want to ask a question, please press star 9 to raise your hand and then star 6 to unmute yourself when handed the word. You can also send in questions via the form to the right. And with that said, I hand over the word to you guys.

Thank you very much. Good morning and welcome everyone to today's webcast covering a video second quarter of 2026. My name is Fredrik Möller. I'm the president and CEO in Vito and the next to me here at our Malmö Sweden in Vito head office is Mr. Peter Berlin, our group CFO and deputy CEO. And this is today's schedule. We will start off with a couple of key group messages, followed by deep dive into our business areas and our financials. Towards the end, we will wrap up with an outlook and a Q&A. And of course, as always, this material is also available on our website. In the months of April through June, InVido bounces back nicely from what was a challenging start to the year. Step by step, month by month, we improve our performance, resulting in our highest operating EBITDA to date for a second quarter. I think to raise profitability, to grow organically in both net sales and order intake, and to make another two acquisitions in the period, I think that really underlines the fact that our model and our strategy work really, really well. Because let's not forget that our market generally remains far from normalized. The ongoing Middle East conflict is de facto a wet blanket, hampering both demand and supply. So while fighting off raw materials surcharges and trying to pass on these costs to consumers, customers via price increases, we are, of course, benefiting from higher volumes. We have seen more operational efficiencies in our factories where we also leverage the investments that we made before, and we retain still a very healthy cost control across the group. The record-sized project order for Sidi Solutions in Scotland, of course, boosted our order backlog. which is now at an all-time high, and I think importantly worth noting as the consumer order intake also grew by 3% in the quarter. Our M&A activities continue to bear fruit. In Q2, we added another two companies to the other four we did recently, this time in the UK and in Croatia, the latter being yet another new market for InVido, making it 15 in total. Last but not least, cash flow was strong in the quarter, meaning gearing is at a good level, I think, 1.8 times on a pro forma basis, providing us with a solid war chest for further acquisitions and investments. and staying on that topic as you are aware in anticipation of organic growth bouncing back we are actively and successfully pursuing acquisitions in both existing and new markets now very pleased with our developments here adding six fine companies across two new markets and with 1.5 billion second edition top line without paying too much in terms of multiples. I'm very pleased with that and glad that our activities over the last 12 months are bearing fruit. At the moment, though, we still see, I mean, on the one hand, we see a healthy activity level across the markets that we're interested in, and we have a solid case pipeline. as the industry consolidation continues to offer opportunities for us. Still, with the prevailing market uncertainty, valuation gets kind of tricky because basically everyone has faced a very challenging Q1 this year and then a lot of the sellers are indicating some kind of hockey stick for the months to come. where we haven't seen the full impact of the Middle East conflict yet. So we are a little bit more selective than usual. And in the meantime, we, of course, also prioritize integration of the latest new family members that we have. And let's look at one of them, namely Marleks in northern Croatia, which is geographically also very close to our AJM business unit in Slovenia, i.e. this offers collaboration opportunities for these to be used. Marleks is a very fine company, ticking all the relevant boxes for us, being number one in its field, having a broad offering, a strong brand. proven track record, good profitability and offering very solid synergy potential. In short, I think it's it's an it's an exciting new acquisition. And I want to welcome them to the invito family. If we then go into the four business areas in order and we look at them in order of size, meaning we will start with Scandinavia. Well, it's a strong quarter by mass and his team building on the momentum that we saw towards the end of the first quarter. AB AB AB AB AB AB We have been fighting hard to balance the raw material energy transport surcharges linked to the Middle East conflict, balancing that with pricing, account by account, where very few, if any of our peers, have been following us. This is far from over. We have yet to see the full impact of the Middle East conflict. At the same time, we have yet to see the full impact from our price increases. But what is clear is that we prioritize profitability here, meaning that we sometimes walk away from projects, bids, tenders, where we see or feel that pricing as at a silly level. I think it's great to see that operating EBIT margin is about 15%. There's organic growth and a solid order book that now offers cautious optimism for the second half. But it really stands and falls with consumer behavior, which is still a bit subdued. We've had some negative FX translation effects from Danish krona to SEC, but at the same time, it was a bit positive from Norwegian krona. So net-net, not that much. Then moving across the North Sea to BA West, which includes the UK and Ireland. As you will recall, a lot of positives also here for Jonna and her team. Strong top line growth, both organic and via new acquisitions, where we added Sovereign Group in the second quarter, another really nice company, fine acquisition. in absolute terms we have a high profit here although the mix has been somewhat against us taking down the margin a little little bit the icing on the cake of course in the quarter is Saidi solutions 50 million pound order invito's largest to date which provides a really nice base load for the factory up in scotland over the coming five years and we're manufacturing and invoicing started now this month in the month of july England offers a tough market still. There's lots of consolidation going on and lots of price pressure, particularly in the consumer segment. It's a lot of political turmoil, as you all will have seen and read about with a new prime minister at some stage coming into office. And I think a win tonight and a win then in the final in the World Cup would be a huge boost for the entire nation. I'm particularly pleased over the collaboration and the synergy pursuit across the BU boundaries here. We have a nice critical mass in this part of Europe at the moment and some really nice companies working together, which bodes really well for the future. Moving to BA East, which is now Finland, Poland, Slovenia and Croatia. All of the Croatian numbers are not in here yet. They will be consolidated on a P&L and balance sheet basis from the third quarter and onwards. Antti and his team are still fighting a bit of an uphill battle across the BA, primarily in Finland. AB AB AB AB AB We get a broader exposure now through the Marleks acquisition, meaning we also have less dependency on Finland, which I think is good. It mitigates our risk exposure a bit. So to conclude this BA run-through, let's turn our focus on BA e-commerce, our online business, where Bo and his team continue on a very positive trajectory, again raising profitability, now actually for the fourth quarter in a row. making their margin trending up on a double digit basis on a rolling 12 month basis, which I think is really impressive. And it's really a combination of pricing, increased efficiencies and cost downs. A lean mean machine that is doing really well. As an anecdote, I visited the Copenhagen marketing office of this business recently, It's really a high-tech think tank, lots of exciting and promising AI stuff cooking in their kitchen, not only within marketing. And yes, it made me feel like a true dinosaur, but I had a great time there. So well done, guys. Now, for some more flavor on InVito's consolidated Q2 financials, I will hand over to you, Peter, please.

Thank you so much, Fredrik. I'll start with this page. This page is showing the income statement. To the left, you can see the Q2 in the middle, year-to-date, and to the right, last 12 months as well as last year. Starting with the quarter, sales is plus 16% compared to last year. Organically, it's plus 4%. We have a material price inflation in the quarter, but that has been compensated by growth, efficiency, as well as sales price increases. Thereby, the operating EBTA margin is plus 0.1% compared to last year, and operating EBITDA is plus 0.2% compared to last year. For the first time ever, the operating EBITDA in the second quarter is above 300 million. Between operating EBITDA and EBITDA, we have non-recurring items of 11 million, whereof 8 million are acquisition costs. Profit after tax is plus 27% compared to last year, and the EPS is plus 26% compared to last year, ending up to 340 kronor per share. Look at the year to date. The year started slower compared to last year with a slower performance in Q1, but then thanks to the organic growth of 4% in Q2, we have now an organic growth year to date of 1% compared to last year. The operating EBITDA margin as well as the operating EBITDA margin is below last year, but in SIG is above last year. And not only the operating EBITDA and also the EPS has been improved and is now above last year, also on year-to-date. Looking at latest 12 months, the sales is now on 9.5 billion. The operating EBITDA is 970 million and the money is 10.2% and we have an EPS of 911. This page is showing the development in sales as well as operating EBITDA compared to last year for Q2 divided between the business areas. We have organic growth in Scandinavia and the West and e-commerce, whereas we still have decline in East. East and then mainly Finland is still challenging. But worth noting, and also Frank noted, said that the result or the profit for operating beta for East is positive in the quarter as well as year-to-date. In West, the consumer market in UK is still challenging, but nevertheless, West has improved the result by 22 million compared to last year. And we have added two acquisitions in West when compared to last year, Victorian as well as Sovereign Group. And then e-commerce is continuing to improve the profitability. Sales is plus 9 million SEK and the operating beta is plus 11 million SEK compared to last year. If you don't look at the more long term trend for the second quarter, this page is showing sales as well as the operating beta margins for a second quarter from 2020 until 2026. We have the highest result in sick this year with the first time is about 300 million when it comes to operating in beta, but it's not the highest margin. We had higher margins in the second quarter during the pandemic. due to a higher degree of consumer sales during these years. However, the margin of this year is above last year and is also the highest for the latest three years with 11.5%. Pricing, efficiency improvements and cost control had a positive margin impact in a quarter compared to last year and has compensated the material inflation in the quarter compared to last year. This page is showing the cash flow and the cash flow generations. To the left you can see the cash flow generations and to the right you can see the capex as well as the capex in relation to sales. The cash flow has been improved in the quarter thanks to cash flow from operating activities, meaning better results compared to last year. but we are also positive impact when compared to last year's related to working capital. And that's mainly due to less increase in operating receivables in the quarter compared to Q2 last year. Looking at capex level, the capex level has been increased and it's now on a late 12 months basis, 3.4% of sales and a year to date on 3.2% of sales. So we are investing more in our facilities, in our operations to improve efficiency as well as in some cases also when it comes to capacity. Then looking at the balance sheet and then specifically looking at the net debt, this page is showing the net debt including IFR 16 and also net debt in relation to operating EBITDA. Net debt has been increased during the last quarters and mainly due to acquisitions and then of course we also paid a dividend now in the second quarter of this year. The net debt includes RFA16 debt of about 475 million. Looking at net debt in relation to operating EBITDA, we are on 2.2 including RFA16 and 2.1 excluding RFA16. If we then recalculate the running 12 months operating EBITDA and include and the latest acquisitions, we have a pro forma. Then we are on 1.8, excluding IFR 16, meaning we have comfortable headroom to the target of maximum 2.5. When it comes to our financial target on return property capital, we have a target of 15%. operating capital has been increased during the last quarters mainly due to acquisitions and now in the second quarter we have also improved the return operating capital by 0.1 percent units from 11.7 to 11.8 mainly thanks to improved result in the quarter compared to last year then looking at the order intake and the backlog Starting to the right, the order intake. The order intake has been increased by 23% organically in the quarter compared to last year. And glad we can see the consumer is plus 3% and then product is plus 58%. Of course, we have a positive impact from the record order in Scotland of 15 million sterling. And thanks to the higher order intake in the quarter compared to last year, we have also a record high order backlog of 3.3 billion. Product is plus 90% compared to last year and consumer is plus 12% compared to last year. If we then dig a little bit deeper into the order intake and we start with the consumer. This page is showing the organic oil intake growth in consumer for the latest four quarters from Q2 2025 until Q2 2026. If we start to the left, we can see the group development. 25 we have minus 4% then was minus 2% in Q3 was plus 2% in Q4. It was minus 2% in Q1 and then now in the second quarter this year is plus 3%. And then you can see that the pot developments in this quarter is mainly due to Denmark as well as in Sweden. The consumer order intake is still declining in UK and in Finland. However, the decline has eased compared to recent quarters. So the driver of the consumer markets and the positive order intake is related to Denmark and Sweden, which is also the largest consumer markets of Invidium. So in total, plus 3% in a quarter compared to last year. If we then do the same thing and we look at the product orders and first thing I would like you to notice is the scale of this diagram. The scale is now up to plus 300% and the consumer was plus 20%. So the volatility is so much higher on the product markets compared to consumer markets, and thereby we divide the order intake between project and consumer. And looking at this quarter, we have, of course, the high order intake in UK connected to the order of Scotland, and they are then driving the total order intake. We have the highest product sales and most prices in Finland. It was slightly decline and UK big growth due to or thanks to the big order in Scotland. Sweden will have also slightly growth compared to last year and the other markets. They only consists of about 30% of the total product sales within NVIDIA and there we have a little bit decline in Denmark. We have a growth in Ireland and also some growth in Norway. Now I then hand over back to Fredrik for the conclusions and summary.