Karnell Group AB ser. B

Good morning and welcome to Canell's Q2 2026 earnings presentation.

I am Petter Malenius, the CEO of Canell and joined by our CFO, Niklas Svensson. Q2 2026 is a quarter we will look back to as a milestone in Canell's development. For the first time, our quarterly EBIT A exceeds 100 million SEK. And on a rolling 12-month basis, our EBITDA margin has now reached 15.4%. And by that, surpassing the financial target we set out at the time of the IPO in March 2024. As usual, I'll begin with an overview of the quarter and the progress we've made. Niklas will then take you through the segmentation's performance and financials in more detail. including cash flow and leverage. I'll then return and discuss our latest acquisition and close with some key takeaways. And for those of you who are joining us for the first time, Canell is an active and long term industrial owner. We acquire and develop small to medium sized industrial technology companies with strong position in their respective niches. We operate in a fully decentralized model, Our companies run their own businesses supported by a lean central team focused on M&A, capital allocation and ownership. Today, Canell comprises of 20 companies across Sweden, Finland, the UK and Italy, employing around 900 people. And with that, let's turn to the quarter. As I mentioned, Q2 marks a significant milestone for Canel. EBIT A crossed 100 million SEK for the first time on a net sales of 584 million SEK. The EBIT A margin for the quarter was 17.1% compared to 14.6% a year ago. On a rolling 12 month basis, our EBIT A margin is now 15.4% and we have thereby achieved the financial target of at least 15%. A target we communicated to our investors ahead of the IPO and said that we would reach it in a medium term. That commitment has now been met. But I should also note that our target is defined of our business cycle. Getting there is one step. Staying there is the goal, and we believe that the quality of our businesses supports that goal. Two other numbers that stands out to me this quarter, the operating cash flow, 62 million. It's up 210% from the same quarter last year. And if you look at the net debt to EBITDA, it stands at 1.9 times, which is within our stated target. It would also be worth noting that both 2026 acquisitions are not fully reflected in the LTM EBITDA, so the ratio will naturally compress as they contribute to a full year of earnings. To summarize, strong earnings, improved cash flow and a solid balance sheet. The chart on this slide shows the consistent margin improvements. Since our IPO, our rolling 12 months EBIT A margin has moved from around 11% to the 15.4% that we see here today. This has been driven by our operational development across our companies and the quality of our acquisitions. I want to give some specific attention to the cash flow. H1 operating cash flow of 121 million SEK compared to 33 million in the first half of 2025. That improvement reflects higher earnings, of course, but also structural change in the seasonality profile of our business. Our geographical expansion, particularly the UK and Italy, has introduced companies with lower seasonality variations and together with target measures within the Group, we have also gradually shifted away from previous patterns where a large majority of our annual cash flow was concentrated in the second half of the year. Two additional metrics that I would like to highlight is the return on capital employed stands at 13.6%. That's a number that's essentially flat year on year. But I also think it reflects the pace of our M&A activity. Capital deployed hits the balance sheet immediately while earnings builds over time. I'd also like to stress that we remain very disciplined on valuation and which you can verify in the purchase price allocation in the notes of the report. And for a group like ours, I personally think probably that EBIT A per share is a more meaningful measure of value creation than reported EPS, since EPS to a large extent is influenced by non-cash items and acquisition accounting. But with that said, looking at the earnings per share after dilutions for the quarter, we now stand at one krona per share versus 0.68 a year ago.

That's a 47% increase per share. And with that, I'll hand over to Niklas.