Nederman Holding AB (publ)

Welcome to the Netterman Holding Q1 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to speaker CEO Sven Christensen and CFO Matthew Cusick. Please go ahead.

Good morning, ladies and gentlemen, and welcome to this presentation of Q1 for Netherlands. Our headline has been resilience in the volatile market because it's been an eventual quarter again, and what we can see is that we are still strengthening our position in the world, although it remains very turbulent. The first quarter, we continued to advance the position in a very volatile market. There is high activity across all divisions. They're all having good pipelines, less good order intake. Because we had lower orders received, although the activity picked up at the latter part of Q1 and continued in here in April, and we will see what that means. We are strengthening our presence in the structurally growing industry, and by that we mean that we are entering new fields like food, farmer and life science related, et cetera, and resulting in a lower sales and EBIT or profit margin.

If I move on to some of the key financials, then, if we go on to... On orders received, as Sven mentioned, for the quarter as a whole, orders received were weaker than the very strong Q1 last year, it must be mentioned. Three of four divisions in Q1 last year are... I'll leave it at two of four divisions in Q1 last year had their record quarters for order intake. I don't want to get us into a debate on currency rates, but... Like Sven mentioned, all the activity clearly picked up, particularly during the second half of March. Negative currency impact, that's something that you and your analysts listening will have heard and will be hearing from lots of companies. It's around 9% quarter on quarter for us in Q1 this year. Orders ultimately were 1.267 billion versus just over 1.5 billion Swedish Krona Q1 last year. That's 6.7% down currency neutral, 9.2% organic. The chart that we see on this slide for orders received, you can see that basically half of the drop in ordering is currency related. On the next slide, sales. Lower than Q1 2025, I've put a comment in there in line with Q3 2025's order intake, which gives a little indication on the sort of lead times. It's not the same lead times across all four divisions, but 1.257 billion was approximately in line with Q3. Again, currency impact minus 9% also on sales. Currency-neutral order sales were down 2%, so less of a drop than on the order intake, and it's purely looking comparative-wise, organically minus 5.5. Profitability, these lower sales volumes are apparent. We did have very strong gross profit margins. Something that's quite pleasing is the increased productivity in our factories, We had rather good utilization in the factories in the ENFT division during Q1, which Sven can come back to. Unfortunately, currencies also affect profitability. Approximately 12 million kroner of the drop in EBITDA is pure currency effects, largely due to the US dollar, which was down quarter on quarter, nearly 15% compared to Q1 last year. Ultimately, what that meant was that the EBITDA for Q1 was 117 million versus 143 million last year. The EBITDA margin 9.3% versus 10.1. Earnings per share 1.31 crown versus 1.69 in Q1 last year. Cash flow from operations. Very slightly negative. It's a typical quarter one, I would say, in an Edmund. Well, typically what we see in quarter one is that we've received some orders just before the year ends and we've received down payments on those orders and we start executing on those. So the working capital development is usually less favourable in the first quarter. We are still lacking some larger orders for which we receive down payments. Once those start coming in, that will boost the cash flow from operations rather well. On the net debt front, very little movement, we could say, since the year end. Division by division, Sven. We start with ENFT.