Inwido AB

Hello and welcome to today's webcast where InVido will present its financial results for the third quarter of 2026. Joining us today are President and CEO Fredrik Müller as well as CFO and Deputy CEO Peter Wellin. At the end of the call we will have a Q&A so you are welcome to submit questions using the form located to the right of the webcast and if you are calling in and want to ask a question please press star 9 to raise your hand and star 6 to unmute line when you have been handed a word. With that said, I will hand over to you, Fredrik and Peter. Please go ahead.

Thank you very much. Good morning, everyone, and a warm welcome to this webcast covering InVido's third quarter of 2026. My name is Fredrik Möller. I'm the president and CEO of InVido. And next to me here in Stockholm today is Peter Wellin, our group CFO and deputy CEO. We will follow the schedule in today's call, starting off with key group messages, followed by a deep dive into the business areas and our financials. And then, as usual, towards the end, we will wrap up with an outlook and a Q&A session. As usual, the presentation material is also available on our website invido.com. The strength and market conditions that we saw already in Q2 largely followed suit also in the months of July through September. There are signs of light on the horizon, best exemplified by the Scandinavian market and the project segment. Recovery is so far not fast, but it is happening. Also, at last, the Green Deal is starting to be implemented across the EU, offering some tailwind to the energy efficiency theme and order intake. It's, of course, no surprise to anyone that the Middle East conflict has continued to put a wet blanket on the supply chain in particular and on demand in general. which is also now driving some fears about inflation and interest rates going forward. Looking at M&A, the M&A market has been impacted as well. Valuations are a bit trickier at the moment, as many year-to-date figures are softer for many of the targets that we're looking at, while at the same time, sellers' expectations on valuation can still be quite high. As for InVido, well, we continue to improve our performance, growing organically in both order intake and in sales, and we reached our highest operating EBITDA to date for a single quarter. I think it's a sign of strength also to record organic growth in the order intake, as well as a higher operating EBITDA margin across all four of our business areas. Three of them also grew sales organically in the quarter. We have stuck to a recipe of profitability before growth, where the key ingredients are volume, pricing, operational efficiency and cost control. And if you think that sounds simple, it's everything but because the competition out there still remains razor sharp. Last but not least, our cash flow was strong once again, reducing our gearing and meaning in turn that we can be proactive and opportunistic when acquisition opportunities do arise. We've had reasons for some extra celebrations this past quarter. I'm very proud over these milestone achievements in three dimensions across the entire value chain, actually. First, InVido had one of the highest upgrades in Nordea's ESG rating to a single A. Second, SPA Vindua Our e-commerce business in Denmark exceeded some 10,000 Trustpilot reviews. And worth noting is that more than 90% of those had a score of four or five. And third, Elite Fönster was ever recognized for its professional sourcing and manufacturing work with aluminum. So well done, everyone. Keep it up. Now it's time to look at our four business areas. So I'll go through them one by one. We have one slide on each and in order of size, meaning that we will start with Scandinavia. This was again a strong quarter by Mads and his team building on the momentum from Q2 and growing top line organically while also seeing a healthy race to the bottom line. I think it's great to see that the operating EBITDA margin is now close to 17%. Sentiment is improving in Denmark and Sweden, and so far mostly within the project segment. Norway is also doing a bit better. We did get some tailwind from something called Villa Effekten in Sweden, which is a newly launched government incentive program for energy efficiency renovation, where some 300 million SEK has been allocated per annum up until 2030. And I think this is a concrete positive example of the much needed EPBD directive now beginning to be rolled out in all of the EU member states. Moving on to BA West, as you can see, Jonna's business is growing rapidly. Integration of our newly acquired entities is proceeding nicely, including Sovereign Group that we took on in Q2. Profit climbed higher in both absolute and relative terms, driven by Ireland and Scotland in particular. In England, the consumer segment remains tough with both consolidation and price pressure prevailing still. Worth noting, though, is that both energy awareness and renovation of social housing is on the rise. And I think the new Labour government looks rather promising, actually. Antti and his team keep fighting the fierce headwind blowing across BA East, primarily in Finland, where everyone is lacking volume, possibly with the exception of the project segment. Order intake, profit and margin were all up, and we saw a nice contribution coming from our recent acquisitions. Market-wise, Poland and Croatia are quite strong, with Slovenia a bit softish from the recent government change. And to conclude this BA run-through, let's turn our focus on BA e-commerce. I know I'm beginning to sound like an old vinyl record, but Bo and his team keep pushing, raising profitability in yet another quarter, reaching 10% in Q3 and almost 11% on the latest 12-month basis, and with a strong organic top-line growth as well. And here we're seeing a successful mix of volume, pricing, efficiencies, and cost management. And now for more flavor on NVIDIA's consolidated Q3 financials, I'm handing over to you, Peter, please.

Thank you so much, Fredrik. We start with this page, the income statement. To the left, you can see the development in the third quarter. In the middle, you can see the year-to-date. And to the right, later 12 months, as well as full year for last year. Starting with the quarter, sales is plus 22%. Organically, it's plus 5%. We have a negative net impact from increased material prices in the quarter. And this has then been offset by improved volume and improved operational efficiency. And thereby the gross margin is more or less on the same level as last year. The operating EBITDA margin has been improved from 12% to 12.3%. And then we have also then efficiency when it comes to expenses and thereby an improved operating EBITDA margins. The operating beta has been improved by 25%, from 268 million last year to 334 million this year, a record so far for a quarter. Looking further down the income statements, we can see that profit after tax is plus 36% compared to last year, and the earnings per share is plus 32% compared to last year, 265 to 349. Looking at the year to date, January to September, sales is plus 15%. Organically, it's plus 2%. So we have now organic growth in the year after a slow start in Q1. The operating EBTA margin is above last year, and the operating EBITDA margin is on the same level as last year, 9.8%. However, in SEC, we have an improvement by 15%, or more or less 100 million Swedish crowns compared to last year. Further down in the income statement, we can see that profit after tax is plus 21% compared to last year, and the earnings per share has been improved by 1.07, from 6 kronor to 7.07. For the latest 12 months, we are just below 10 billion Swedish crowns, or 9.968 billion. We have an operating EBITDA margin of 10.4, and the earnings per share is just below 10.996 kronor. On this page, we can see the development in the third quarter from Q3 last year to Q3 this year. To the left, you can see the development on sales, then divided between the different business areas. And to the right, we can see the development in operating in beta. All business areas have improved in the quarter, both when it comes to results, both in SEC as well as in margins. All business has growth in a quarter, but not organic growth. Indido East has a negative organic growth in the quarter. And for the group in total, we have then reached the highest operating EBITDA so far in a single quarter with an operating EBITDA result of 334 million. This graph is showing the sales as well as operating in beta margin in the third quarter from 2020 until 2026. The results in the third quarter was in SEC. We have the highest operating in beta ever in SEC, but not the highest margin ever. However, the margin has been improved compared to last year, 12.3% this year compared to 12% last year. We have made acquisitions and we have six acquisitions this year in the third quarter, which we didn't own in Q3 last year. All acquisitions, they have developed well and had good contributions to the profits. However, the combined profitability is below the rest of the group, and thereby they have diluted the operating EBITDA margin in the quarter when comparing to last year. So excluding acquisitions, we have a higher operating EBITDA margin than the 12.3. On this page, we are showing the cash flow before financial activities, excluding financial assets and acquisitions. And to the right, you can see the development when it comes to our capex. We have improved cash flow in the quarter. We have a higher contribution from operating activities and improved results and also lower tax payments in the quarter this year compared to last year. working capital has increased more this year compared to last year and we have somewhat higher capex this year compared to last year but in total we have improved cash flow of 56 million this year compared to q3 last year and the improved cash flow it means then we have then reduced the net debt that this pace is showing the net debt and the net depth in relation to operating EBITDA from Q3 2023 until Q3 2026. We can see that we have a good leverage. The leverage remains healthy and we still have headroom when it comes to M&A. Net debt in relation to operating EBITDA is 1.9, excluding IFR 16. And if we then calculate on a pro forma basis from the latest acquisitions in this year and last year, we are 1.8. When it comes to net debt, including IFR 16, we are 2.1. So still good headroom compared to the covenants and also good headroom compared to the target of maximum 2.5. Return on operating capital has also been improved. This page is showing the return on operating capital development from Q3 2022 until Q3 2026. We have improved return on operating capital during the last two quarters from 11.7 in Q1 to 12% in Q3. We can see an increased operating capital and the increase is related to acquisitions during the last 12 months. Looking at the order intake, the total order intake has been improved in the quarter. The organic order intake of the group is plus 7% and we have growth in all business areas. Scandinavia plus 7%, East plus 4%, West plus 10% and e-commerce plus 6%. The growth is mainly within product markets, but the consumer segment has also slightly growth of 1% in the quarter. And thanks to the improved order intake and acquisitions, we have then reached the highest order backlog ever with the order backlog of close to 3.5 billion Swedish crowns end of September this year. If we then divide the order intake a little bit differently, and this page is then showing the order intake for each market, so not bisher, so markets. And this is then showing the organic order intake for the consumer markets. The largest sales consumer markets of InVido is Denmark, stands for 40% of the consumer sales, followed by Sweden with 24%. So in total, they're two 64%. And this graph then showing the organic oil intake development compared to previous years from Q3 2025 until Q3 2026. And as you can see, we still have a growth. We have a growth in Denmark and we have a growth in Sweden in a quarter. Sweden is then followed by UK. UK stands for 50% of consumer market, and then Finland, 7% of the consumer market. And combined, those two have 22% of our consumer sales in the latest 12 months. And here we have continued decline. So the consumer market in UK and in consumer markets in Finland is still a challenging market. And as you can see, the percentage is actually more declined in Q3 compared to Q2. So still challenging market for UK and Finland. And then the rest is also slightly growth. The rest stands for 14%. And the rest that is Norway, Ireland, Germany, Poland, Slovenia and Croatia. If we then look at the same thing for the product markets, and then I must say the product market is much more volatile compared to the consumer markets. On previous page, when I showed the consumer market, the scale of the graph was up to 20%. Here is a scale up to 300%, just indicating that there's a higher volatility in the product market when it comes to order intake, not when it comes to sales. This is when it relates to order intake. Finland is the largest product market of NVIDIA, stands for 30%, or second largest, 30%. UK, together with Ireland, is the largest market. So Finland has there we have a slightly growth in the quarter and we have the highest growth in Ireland in percentage. So in total a growth of 18% for the product markets in the quarter compared to last year.