Lindab International AB (publ)

Welcome to the Lindab Q3 presentation for 2025. During the questions and answers session, participants are able to ask questions by dialing star 5 on their telephone keypad. Now I will hand the conference over to the President and CEO Ola Ringdahl and CFO Lars Inner. Please go ahead.

Good morning and welcome to this presentation of Lindab's Q3 report. I'm Ola Ringdahl, President and CEO of Lindab Group and next to me I have our CFO Lars Ynne. We will begin by presenting the results for the quarter and after that we will take a closer look at our key focus areas and end with a market outlook. Following the presentation there will be a Q&A session. Now let's start with some highlights. Our largest business area, ventilation systems, showed strength and achieved the highest sales and results ever for a third quarter. The adjusted operating margin reached 10.6% for ventilation systems and 9.7% for the group overall. Thanks to efficiency improvement and structural measures, both our gross margin and operating margin have strengthened. In many markets we could see good sales growth, but in Germany and Sweden we are still affected by low market activity. Our smaller business area profile systems continues to be negatively impacted by low activity for larger building projects, and this is particularly evident in Sweden. Since development is still hard to predict, we focus on measures within our own control to improve profitability. Now let's take a closer look at our sales development. In ventilation systems, sales increased by 2% compared to the same period in 2024. Sales in comparable units was down by 1%, a smaller decline than we have seen in over two years. Many important markets for Lindab, such as France, the UK and the Netherlands, experienced positive organic sales growth. In Germany and Sweden, however, market activity remained low, influencing sales negatively. Acquisitions contributed positively with 6% and currency affected sales negatively by 3% within ventilation systems. For the business area profile systems with its higher exposure to the struggling Swedish construction market, there was a decline in sales. Activity for larger building projects has not yet gained momentum. What is positive though is that sales through builders merchants is continuing to increase and actually showed double digit growth in the quarter. The negative organic growth was significant, but it should be mentioned that around half of that effect comes from active decisions by Lindab to close businesses or discontinue businesses in both Eastern Europe and in Sweden. Now let's have a look at the operating profit. Ventilation systems delivered the highest results for a third quarter ever, with an adjusted operating margin of 10.6%. If we adjust for negative currency effects, the adjusted operating profit increased by 17%, a significant achievement. And I thank my colleagues for a very good job. Continued efficiency actions and structural measures to reduce our cost base have contributed to the strong results. Our cost reduction program, which we announced at the end of 24, reached full effect in July. Further structural measures are underway to optimize operations even more. In profile systems, the adjusted operating margin of 7% was negatively influenced by low sales volumes and continued low capacity utilization. This has been partly compensated by lower costs thanks to structured measures. I am not satisfied with the results in profile systems and we plan additional efficiency actions and structured measures to improve profitability in the business area. The group improved results as well as operating margin. And when you read the report, you will notice some one-time effects that we adjust for. And let me make a few comments on that. One of items in the quarter have a positive net effect of 176 million. This is primarily due to a reduction of the earn-out consideration for Airmaster that was acquired at the beginning of 24. Airmaster continues to deliver high profitability according to our expectations. However, the company has not met the ambitious sales targets that were part of the earn-out mechanism. The one-off items have no impact on our cash flow. Now I hand over to Lars Ynner for a look at our cash flow and the financial position.

Thank you, Ola. Linda delivered a strong cash flow in the third quarter, with cash flow from operating activities increasing to 335 million SEK. Net debt remained stable at 4 billion 411 million SEK, which is in line with previous levels. Lindab's target for net debt to EBITDA is that it should be below three times. In Q3, this ratio stood at 2.7, unchanged from the previous. The financial net debt to EBITDA ratio was 2.1 at the end of September, also unchanged compared to the previous quarter. Ola, now back to you and a look at our focus areas for you.