Nordrest Holding AB (publ)

Välkommen till Nordwest Bokslutskommuniqué 2024. Jag som pratar heter Thomas Dahlstedt. Förutom att jag är vd och koncernchef för bolaget så är jag också grundare av bolaget. Jag startade bolaget för ungefär elva år sedan, lite drygt i dagsläget. Åren går ju. Jag har tagit bolaget nu sen förra året, i maj förra året, till First North Growth.

Mattias Ekehlet and I are CFOs at the company, and have been back for almost 30 years.

Today's agenda is a short presentation about Nordrest. Even though we have talked about it so many times, it is good for those of you who have not been with us before to listen to how we describe Nordrest. We will go through the financial information for the period, quarter and the whole year. Important highlights during the quarter and also a little bit for the period. The plan or the board's proposal for allocation and then there will be time for questions. There are usually about 7-8 minutes and they send you in and then we pick them up and read as we can. Let's get started! The reason why we went to the Stock Exchange in May was to create credibility, especially when we want to continue this journey outside of Sweden. Until the change of year, we have only been in Sweden and have built a business mainly based on Swedish sales. We have one that is MRE, Meals Ready to Eat, which we will also describe a little more in more detail later on. where we sell to NATO's purchasing organization, NSPA. But in general, our business is based in Sweden. We want to be a challenger. Now we are relatively big ourselves, so it is difficult to define ourselves as a challenger. But the DNA and the feeling that should be in the company is that we want to be a little hungrier and a little better than our competitors. And that is also that we win businesses that our competitors are not hungry enough for in the current situation. When it comes to customer groups, we have very long agreements and or rental agreements with ownership protection. And our primary limitation on the meal market, because we work with ready meals for guests. It can be a hospital, elderly, school, company restaurants, personnel or defence forces, hospital I mentioned. Arlanda and Dinners, it is important that we have a natural flow of guests. With a natural flow of guests, it is like a monopoly or oligopoly in the area. This means that when we are in a business complex, it is mainly us who are the suppliers, or when we are on the road, or if we take Arlanda, there are a few suppliers. It is in that competition that we compete. Vi har inte verksamheter mitt i stan där vi konkurrerar med allting annat. Det är inte säkert att just gästerna kommer till oss eller inte. If we look at our business idea, it is to serve a nice meal experience. And here are some things that we emphasize, and we also communicate that as a part of what we stand for. And nice is for us to be a little more uplifting, the term as such. It also sets the level of ambition a little bit. We define nice as a four. We want to be a little better than medium. But we don't want to be a five either, because that's not what our employers and customers want to pay for, but we think it's a good level, and then we're a little hungrier and a little better. We also work with a meal experience, not food, but an experience. And in the experience itself, we have a model called MSM, where we have the meal that is primary, but also the service and the environment. And the environment is divided into two parts. One is the sustainable part, and the other is the meal experience itself. And where we talk a lot about Du kan gå till en hur bra restaurang som helst som har fantastisk mat, men är if the staff is unpleasant or smells bad at the restaurant, you will still not think that it was a nice meal experience. And in the same way, even if the food on the other side may not be 100 percent, you can with a fantastic service and a fantastic meal environment actually think that it was quite nice anyway. And what we are trying to strive for is to make all these parts as good as possible, and in this way we increase the experience and become nice. We have a business model. And that is how we work. And there we work to maintain a systematic entrepreneurship. And what is a systematic entrepreneurship? When we started to grow, we were in the middle of an hourglass. Our market looks like an hourglass with maybe 25,000 restaurants at the bottom and a few large multinational actors at the top. At the top, you deliver a very systematic solution. You have a management system, you have GDPR policies, you have purchasing policies, you have IT policies, but you also have a very centralized lunch delivery, where you may have controlled menus, you have a concept that tells exactly how things should be. While entrepreneurship is out in the city, where the local restaurateurs every day get to do a little better job and fight a little harder to actually get the guests to come out of the natural guest flow Because in the natural guest flows, for example companies or hospitals, you will not get in if you have this systematization. And there the entrepreneur must do an even better job to get the employee or guest to step out of the hospital area or the company area and actually choose to pay a little more. Because they don't have the scale and size divisions that we have when we get up to these volumes. And what we have tried to do is to combine this by having a local delivery, but also having a framework where we deliver everything that our customers want in the form of systematization. For example, IT policy or HR policy, HR manuals and so on, management systems. But we work with very strong local managers and we call them a bit of entrepreneurs. They are employed and they do not have any financial incentives, but they have a passion and a sense of being able to stand and be responsible for what you want every day. And you should remember that in this industry, many of the people who work here are more in the art sector. You are driven by what you actually get perform in the form of what the guests like about the plate and not just go to work and open a box or flatten together or bake or boil or what you now get for central menu recommendations that you should do. If we look at the strategy, it is the natural guest flow. But what we also have, given that we are as large as we are in the current situation, centralized solutions for marketing, IT platforms, cash systems, which then gives scale divisions. And we also have large volume of purchase, which means that we can press our purchase prices and end up in the end price at the same levels as our competitors who work cleanly systematized. Guest flows are these customer groups that we also report in connection to quarters and periods. And if we go a little short in the different ones, I think I'll start from the bottom this time, and then it's travel. It consists of two parts. One is the business that we have at Arland. At the time, there were five restaurants, or four restaurants and one café. The last one opened just a few months ago. What we have submitted an offer for a few years ago is now open. We are now working to trim the business and get the profitability we want. We can also comment that we have a higher expectation of rejection in this segment, precisely because we have to invest in these businesses. In all the other businesses, you actually step into kitchens and restaurants where contractors, for example the hospital or the security forces or Volvo Cars, stands for the infrastructure itself. But in Arlanda we have been forced to invest. This also includes dinners and road restaurants that we acquired the last part of during the spring of 2024. Vi har sjukhus och äldreomsorg, där vi bland annat är leverantör till region Gävleborg, Gävle, Hudik, Bollnäs, Sandviken. Vi har ett antal äldreboende, bland annat Stockholms sjukhem, enskild eventör och några privata. Här är det väldigt långa avtal och väldigt förutsägbar volym i form av att You have a number of care facilities and you fill them out mainly every day, a little less in the summer, a little less in the weekends, but in general it is full. In the elderly, it is almost always full. If you have 100 places, it is 100 meals, breakfast, lunch and dinner. In terms of volume, it is the same at school. If you have 1,000 students as the next customer group, then you have 1,000 meals or 1,000 ordered lunches. However, the volume is not the same on a yearly basis, since you only eat 178 days a year. Then there is some free time and so on, and there are some additional volumes. And it's just lunch, but it's a very predictable volume. We have a university, And there we are at 11 places, I think, or 12 in the current situation. And that is a subscription of high school restaurants that we did in 2019. We see that we have had a little drop after Covid here, but we have worked it up now with working with catering and external volume. So we see how that business still grows, both in the number of sites that we take, but also in the business as such, or at least stabilizes. In the main, all other businesses have We haven't lost much after Covid, just a little bit on the company side. Mattias will comment on that as well, in the form that we have made some changes after the budget. But on the campus side, or university and university, we have very long hiring contracts, mainly, and protection. On the company side, I was talking about Volvo Cars, Ericsson, for example. There we are in some form of monopole as long as you are within the scope of protection. We have long contracts. We don't have guaranteed volumes, but we count on key numbers and see how much we can reach from the employees who work at a certain workplace. And we think we have a good penetration there. And since we have a nice time experience, we also tend to have a better penetration than our competitors. And there we can count the business home sometimes a little easier. Finally, defense. It is a customer group that consists of two parts. The first is the operation of half of the Swedish defense's military and camp restaurants. They are in the south of Mälardalen. There we have long agreements. It is a volume that is constantly growing over time due to the changed security situation against Russia and what is happening in Ukraine. I will comment on it a little later. And then we have the MRE business, which is Meals Ready to Eat. And these are ready-to-eat solutions in the field that we produce in a facility in Varberg, where we have a framework agreement with NATO's purchasing organization, the NSBA. One of our customers is the Swedish Defence Force, but there are also several European Defence Forces that buy from us. And for us, it is also a nice time experience in the field.