Lifco AB (publ)

Thank you and good morning and welcome everyone to the Q4 2025 earnings call for LIFCO. We will start with the overall summary on page number two in our presentation. And we can start looking at the quarterly numbers where we can conclude that LIFCO Group then had a sales growth of 6%, of which organic growth was 4%. Acquisition growth 7%. And then we had, like many others in this quarter, a negative exchange rate effect. In our case, the negative effect was 5% on sales in the quarter. If we go further down, we had an EBITDA growth of 5%, net profit growth of 7%. And in this quarter, we had a strong growth in operating cash flow with an increase of 23%, thanks to our increased results and also some release of working capital. and earnings per share grow in the quarter with 7%. If we then look at the right-hand side of the graph and take the full year figures, we had a sales growth of 8% in 25, of which organic growth was 4% growth, acquisition contributed with 7%, and we had for the full year a negative exchange rate effect of 4%. EBITDA grew for the whole year with 7%, And net profit growth was 10%. And also for the full year, we had a solid operating cash flow of growing 11%. And our earnings per share grew for the full year numbers with 10%. And I'd also like to just highlight that the LIFCO board has proposed a dividend of 2.7 Swedish kronor per share, which is an increase of last year's 2.4 Swedish kronor per share. And this, of course, a proposal that will be finalized as a decision on the annual meeting. If we then go further to page number three in our investor presentation, we can have a little more deeper look at the different business areas. And if we start down with dental, we had overall a stable underlying organic development during the full year 2025. And also in the last quarter, the same pattern. And for the full year, sorry, both in the quarter, especially, and also for the full year, we had negative effects from currency, which then overall led to a moderate increase in profits of 2% for the full year numbers and 1% in the quarter. So quite stable underlying development in this area. In demolition tools, we have during the whole 2025 seen a slightly improving market conditions with some organic growth. And this is unfolding quite difficult year in 2034 when the markets were very weak in most part of the demolition tools area. The organic growth continued also in the last quarter, but was offset by even more negative exchange rate effects. when we translate our numbers into Swedish kronor. And during the Q4, the margin in demo tubes was slightly lower than previous year due to some product mix effect. But I would also like to highlight that we had the opposite situation in Q3. And this is an area where we have and have always had some volatility in margin between different quarters, depending on what products are taking a bigger share of the total in the area. For the full year in 2035, Demolition II scrolled the EBITDA with 9%, despite quite strong negative foreign exchange effects, and the margin for the full year period increased with one percentage point. If we then go further down and look at our system solutions area, we have now mentioned throughout the year that it's been a somewhat challenging year for many parts of system solutions. especially in the transportation products and special products area. They have actually faced more difficult market conditions compared to previous years. And the lower sales volumes in parts of these areas led to slightly lower EBITDA margins. If we don't talk a little bit about other areas, infrastructure products saw some improvements in 2025, both for the full year and in the quarter. And that's thanks to the same trend that we saw with demolition tools, that's slightly improving construction markets and infrastructure markets, making this area coming back organically. Environmental products had a stable development through 2025. And as you all know, contract manufacturing had very strong growth in the first nine months and more stable development in the last quarter of 2025. And during the last quarter, Syrsa Solutions improved EBITDA with 10%, also here negative foreign exchange but also of course helped by a number of acquisitions that contributed to this growth and margin was slightly lower than previous year due to also here we have some negative product mix effects that areas with slightly lower mortgage is having a better organic development in this area so if we go further to page number four we can then take a little bit of a step back and take a look at the longer perspective on LIFCO. But before we do that, we can then also give some information on how the EBITDA growth for LIFCO in 2025 was split. We had another year with strong contribution from acquisitions of 10% in 2025. And as you can see here, we had flat organic EBITDA development throughout the year. And this is then mainly due to the weak market conditions in parts of CISO solutions that has led to lower sales volumes and then shrinking organic profits in some parts of this. And then foreign exchange had a negative impact of 3% for the full year on the beta level. If we then look at the longer time period of this growth, we can then conclude that for the last 11 years, we have had an average growth from acquisitions of 12% per year average organic EBITDA growth has been six percent and I think now we have also had a couple of years with tougher market conditions so even with those years including that in the data we are able to grow on average six percent per year throughout the last 11 years and if we go further down on this slide you can see then also the split of the average organic EBITDA growth on different business areas dental Quite stable development with 1% growth on average per year. Demolition tools having a higher growth of 9% per year, and systems solutions then have had an average 11% organic growth over the last 11 years. And then we can go further into page number five, also a long-term perspective graph. And here we can just see that LIFCO has grown the beta, and now we're talking about CAGRs, compounded average growth rates, of 18%. from 2015 to 25. Earnings per share has grown 16%. Our net debt has actually been lower than at the time of the IPO. So we're now sitting at 1.1 interest-bearing net debt to EBITDA. We had a strong growth in operating cash flow, and also we've been growing our dividends with around 70% CAGR. Also on this slide, we also list how much we've spent on acquisitions in the years. And also on the bottom of this slide, you can see basically what we paid equivalent to the 100% ownership of the companies that we've taken in every year. And also the estimated profit impact of the companies that we have acquired in each and every year. And if you look into details of there, you can see that we continue to have, we're adding high margin, strong companies, and we're able to our, very hard work and very diversified screening of companies all around Europe to find very high quality companies at fairly reasonable valuations. If we then go further down to page number six, which is maybe the most important part if you take a long-term perspective, short-term cash flow is of course a volatile measurement. It can vary between months and quarters. And if you take a very long-term perspective, cash flow is the best way of measuring the underlying performance of a company, and especially when you measure it on the cash flow per share. And just to clear the data we have here, in this slide, we are looking at the free cash flow per share after CapEx and after all interest payment taxes, et cetera. And the only thing we don't include is dividends and acquisitions that we view as more decisions on the board level and annual meeting levels. So if you look at that measurement, we have actually grown cash flow per share with 22% CAGR since LIFCO was listed, which basically means nine times higher cash flow per share than back to 2014. So very strong development here. But this is also a fundamental part of why we're able to continue to grow LIFCO from acquisitions without stretching our balance sheets. If we then go further down to page number seven, we can also see on the more graphical level that our net debt GBT ratios are very stable. Basically, it means that we are using our free cash flow in a stable way to pay dividends and also make acquisitions. We have total net debt, including IFRS and our option debt for future payments. It's 1.7. It's down from one year ago. And the interest bearing net depth EBITDA is 1.1 times, which is also down from one year ago, despite all the acquisitions that we carried out in this year. And this obviously means that we still have plenty of room to continue our growth journey, both organically and from acquisitions. And I would also like to highlight that our M&A capacity is continuously increasing. We take every year some steps to develop this, and we did also very good development in our capacity in 2025. And then we can go all the way down to page number 33, where we just look at the acquisitions that we carried out in 25. And in total, we announced 17 acquisitions with a total estimated sales level of 2.2 billion Swedish krona in combined turnover. And once again, we have acquired in 25 acquisitions. a very good collection of companies. They have high margin, super niche, super specialized and strong positions in their respective niches. And I also like to highlight, and this is not new for 25, but in general, when we acquire these super niche, strong market companies, we also get very strong profit-oriented company cultures. So we're very happy to welcome these companies into the culture that's matching with Go in a very good way. So that's all from me, and then I'd like to open up for any 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 Carl Ragnarstam from Nordia. Please go ahead.

Good morning, it's Carl here from Lodea. A couple of questions from my side. Firstly, looking at the other operating income and expenses in the quarter, 60 million, that is seemingly the highest level ever, I think. What is behind that, do you say?