Lifco AB (publ)

Thank you very much and welcome again. We had some technical difficulties, so we will restart the call again. And we start again at page number two and look at the overall performance of the NIFCO group. And we can then conclude that the third quarter is a solid quarter, despite some difficult market conditions in parts of our business, especially in system solutions. In the third quarter, we grew net sales with 9%, of which 5% was organic growth, 8% growth came from acquisitions, and we had a negative foreign exchange rate effect of 4% in the quarter. EBITDA grew with 10%, and the EBITDA margin of 22.6% was slightly higher than the same quarter last year. We have very solid and strong cash flow in the quarter, and then I'd like to highlight when we look at net profit, where we have a growth of 90%, that we had an impact of a one-time effect in this quarter, where of about 63 million Swedish kronor, and this has to do with a revaluation effect on deferred taxes, due to a decision in Germany that they will, in year 2028 onwards, gradually lower the German corporate tax rate. So this is one type of revaluation should affect. So there will be no further impact of this tax effect in the coming years until 2028, where we'll see gradual lowering of taxes in Germany. If we then look at the nine-month period in 2025, we grew our net sales with 9%, of which 4% was organic growth. We had 7% positive impact from acquisitions and then a negative impact of 3% from foreign exchange rates And then EBITDA grew with 7% and margin for nine month period was 22.2%, which is slightly lower than the year before due to weaker market conditions in parts of our system solutions business, which has led to an organic decline in sales and lower margins in some areas of our business. We can then go over to page number three and look into the different business areas. If we start with dental, it's overall quite stable development, which is not unusual for this area. So for the full year, we have a small growth in profit and sales. Of course, we also have some negative foreign exchange effects dragging down those numbers. In Q3, we grew the profit with 9%, and margins was a bit higher than last year. But I just want to highlight that there could always be variation between quarters, and we've seen that also in history. So I look more at the full year performance here. In demolition tools, we have improved organically now in 2025, and this has to do with a quite weak development in 2024, so we see a comeback. So this organic growth that we see in 2025 also leads us to improve margins because we have a positive operational leverage effect. When we have slightly higher volumes, we can also get normally better margins. And the beta margin of 25% for nine months is strong, but I also want to highlight that the market conditions are still not back to the levels we saw a few years back when we had our record years in this business area. If we go down further down to CSUS Solutions, we are growing with 14% for the nine-month period, but margin is slightly lower than previous year at 22.4%. And once again, the main reason for our low margin is that we are experiencing weaker market conditions throughout this year in some areas, which led to lower organic sales and then slightly lower margins organically in those companies. And this is mainly in our transportation products and special products subdivisions, but also some other areas we've experienced this, depending on what situation the companies are in. And I also want to highlight that our companies, as always, are focusing very hard to now get back the margins to normal levels, to tight, not the perfect market predictions. I just also want to remind everyone that another reason for the lower margin in consumer solutions for the nine-month period is that we, especially in the beginning of 2025, had very strong organic sales growth in contract manufacturing. which is an area we slightly lower more than the other fortresses. So we get sort of a little bit negative mixed effect in this year in the numbers. And then we can go to page number seven and take a look at our financial position. And our interest-bearing net debt to EBITDA remains at low levels at 1.3 times net debt to EBITDA. This is a number where, despite the fact that we have done quite a number of acquisitions this year and have pretty good activity, we are still having a very solid position when it comes to our opportunity to continue doing acquisitions. We will, as always, continue to look to find attractive opportunities to acquire good companies all around Europe that can contribute to the future development of our group. I would like to remind everyone we focus on acquiring very high-margin companies with strong positions in small niches. We also keep our focus on staying disciplined and finding reasonable valuations. This is always a difficult task, but we have historically done a good job. Once again, I remind everyone the timing of acquisition when they materialize is always difficult to predict, and they will be a bit lumpy. So far in 2025, we have had acquisition carried out at quite a good level. I also want to remind everyone that we are working very hard on continuously developing our organization so that we can do more acquisitions. Over the last past five to seven years, we have grown our capacity to make more acquisitions with around, I would say, 10% every year. And this, of course, is an area we will continue to work very hard on in the future so we can continue to develop LIFCO step by step. And with that comment, I would like to open up if there are any potential questions. Thank you.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Zeno England Rick Chudy from Handelsbanken. Please go ahead.

Yes, good morning, Per. Thanks for the presentation and taking on questions. I would like to start out in the emulation and tools. If you can nuance a bit in terms of, so to say, end markets, both in terms of products and geographies.