Lindab International AB (publ)

Hello and welcome to this presentation of Lindab Group's report for the first quarter. I'm Ola Ringdahl, President and CEO of Lindab Group. And next to me, I have our CFO Lars Unno. We will begin by presenting the results for the quarter and then move over to our focus on profitable growth and an outlook. Following the presentation, there will be a Q&A session. Let's begin with some highlights. We can see a mixed picture for our two business areas where ventilation systems showed stability in the quarter and profile systems had a very challenging quarter. Sales and operating profit for profile systems were affected by a combination of external and internal factors which weighed on the group's results. For our largest business area, ventilation systems, I'm pleased to see an improved operating margin for the third consecutive quarter. That's a sign of strength in a challenging time. Now let's take a look at our sales development. Overall, group sales values decreased compared to the first quarter last year, and this was mainly due to currency effects and low sales numbers in profile systems. For ventilation systems, organic sales growth was negative by 1%, and we noticed delayed construction projects during January and February due to the tough winter, but the pace was clearly better in March. Acquisitions contributed with 2% and currency effects continue to be on high levels with an impact of minus 5%. In the Nordics, an important market for Lindab Group, the goods sales trend continued and we reached organic growth for the ventilation segment in the quarter. We also saw a continued good sales trend in important markets like the UK and Italy. In Germany, however, the market is still slow. Sales for business area profile systems was low in the quarter. Divestments reduced the sales value by 7% and currency reduced by 2%. Organic sales growth was minus 10% due to a weak project market and low sales volumes in January to February due to a harsh winter. We saw clearly better sales in March with organic growth for the business area in the month. Now let's move over to operating profit. Group operating profit was negatively affected by the weak quarter for profile systems. Adjusted operating margin was 6.3% for the quarter compared to 7.1% the previous year. Development in ventilation systems showed stability and resilience despite the tough market conditions and negative currency effects. Operating profit for the quarter was on a similar level as last year for ventilation and the operating margin increased to 9.2% from 9.0% last year. I'm pleased to report an increased operating margin for the third consecutive quarter thanks to proactive efficiency measures and good pricing discipline. For profile systems, I am far from pleased to report a negative operating profit in the quarter. There are several factors affecting the results for the business area. First of all, the low sales volume in January and February are the main explanations to the poor results. Secondly, the ramp up of sales and production volume in the sandwich panel factory in the north of Sweden has been slower than anticipated after the relocation of the factory last year. And the third factor is a poor result in our one remaining profile business in Eastern Europe. The divestment of Lindab Romania should have been completed in March, but the authorities are delayed in their administrative approval of the transaction. Now I hand over to our CFO Lars Yno who will present the cash flow development.

Cash flow in Q1 was impacted by timing effects in working capital, amounting to 45 million SEK compared to 160 million SEK last year. Net debt was 4 billion, 410 million SEK, broadly in line with previous levels, with 1 billion, 474 million SEK related to leasing. Our target for net debt to EBITDA is that it should be below three times. In Q1, the ratio was stable at 2.6, in line with the previous quarter. Financial net debt to EBITDA increased slightly to 2.2 from 2.1 at year end. Ola, back to you.

Thank you, Lars. Let me share some more information on how we continue to develop our two business areas. We start with ventilation systems. In our largest business area, there are some encouraging developments. Operating margin has increased for three consecutive quarters, and we see good opportunities to continue this positive trend and to reach an operating margin in line with our financial goals. Within our strategic focus areas, we see good progress Let's look into some of them. In technical ventilation, we are taking important steps within the distribution of air handling units, fans, and room ventilation equipment. Likewise, we see good development within the growth area of decentralized ventilation. Our acquired companies like Airmaster, Atib, and Ventia are all good examples of successful acquisitions that already contribute a lot to Lindab Group's results. For fire and smoke solutions, we see double-digit growth over the past 12 months. This product area is becoming an important business for the Lindab Group. Here, our different companies in the group have started a close cooperation, and we can target the market with a broad and strong product range from Lindab Group. During the last years, implemented structural measures have reduced our cost base within the ventilation business and gross margins have been strengthened thanks to investments in automation. This work will continue and an additional important area is synergies between the different companies in the group in areas like sales, purchasing and production. We move to some comments about business area profile systems. I'm clearly disappointed with the sales and profitability development for profile systems. The exit from Eastern Europe helps our results, but it is not enough. We must take more actions to get profile systems into shape. Therefore, at the beginning of May, we have reorganized the entire business area with the objective to improve business focus and strengthen the results as quickly as possible. We are also evaluating further structural measures. I'm determined to bring back profile systems to a profitability in line with the group's financial targets. Now some words about how the conflict in the Middle East can affect Lindab Group. First of all, I should clarify that Lindab Group has no operations in the Middle East or any significant sales to that region. So the direct consequences of the conflict are minimal for us. However, the conflict in the Middle East is causing, among other things, higher transportation costs due to increased diesel costs, etc., and increased raw material costs. In April, Linda announced price increases to fully offset the higher costs and protect our margins. If necessary, another round of price increases will be implemented during the third quarter. Now let's move to the market outlook. In these turbulent geopolitical times, it is definitely not easy to make any market predictions. We work with different scenarios and try to adjust as best we can. And we are focusing on measures within our own control to influence sales and profitability. Looking at the latest available forecasts, the European construction market is still expected to return to growth during 2026. We expect that this recovery will be slow and it will take some time. For the European ventilation market, there are indications that this market will grow slightly from today's low levels. The Nordic region has started to grow, which is encouraging. But Germany is still a slow development and a question mark for the rest of 2026. For profile systems, a gradual market stabilization is expected during 2026, although it will probably remain on low levels. In the medium and long term, we have a positive market outlook. Our ventilation systems provide energy savings for buildings and help to create a healthy indoor climate. And Lindab's position in this industry is at the very top. Thanks to efficiency measures and our implemented investment program, we have a solid platform for profitability when market demand increases. With that, I conclude this presentation, and Lars and I are now ready to take your questions.