Nordrest Holding AB (publ)

Hello and welcome to today's presentation where Nordrest Concern will present the last quarter and the same period. My name is Thomas Dahlstedt and I am co-founder of the company and head of the company. And with me today is my financial manager. Hi, my name is Mattias Wikell and I will also be part of today's presentation. We have an agenda for today's presentation and it is a short description of what we are working on as a company. We will comment on the financial information that we have just left, important highlights during the quarter and the period, and then there will be about five minutes for questions primarily related to the quarter and the period. I started Udrest in 2014 with the intention of being a pioneer in the Swedish food market. The intention was to make an impression on the food market and therefore expansion has always been important. I have reasoned that it is no idea to try to mission on something that you want to be better on a market if it is not someone who sees and hears it. Therefore, we have always had as an ambition to be a little better than our competitors and above all contribute to the development of the Swedish food market. Historically in Sweden, but now we have also managed to grow outside of Sweden, where we have one business or several businesses in Finland and one business in Denmark. Otherwise, our concentration in Sweden is mainly in the Söderdalälven, where we mainly have a lot of business in the major state regions. Vi är ett renodlat måltidsbolag och det innebär att vi sysslar inte till exempel med städ, vaktmesteri, reception, utan om man lite kort och enkelt ska beskriva vad vi gör så är det något som man stoppar i munnen. Kollar vi då vad som särskiljer oss från våra konkurrenter så har vi ett antal ben. And the most primary leg with Nordest, and when our customers and investors ask what is it that makes the difference between Nordest and all the other operators, apart from the fact that we are pre-cooked in a meal service, is that we work with systematic entrepreneurship. And systematic entrepreneurship means that we have very strong local union leaders. A union leader is, for example, a restaurant manager. Henn has a great mandate to make the decisions that are required in their everyday life so that the guests, i.e. those who go out and the customers, our contractors, for example Volvo Cars or Ericsson, are satisfied with what we do. And the systematization that we have is a pure hygiene factor. To come in and do these businesses with the Defence Force or Volvo Cars and so on, så kräver de att vi har ett antal saker som vi uppfyller, GDPR policies, IT policies, HR policies, och så vidare. Kan låta rätt tråkigt, det gör ju oftast inte att maten blir särskilt mycket godare, men det är någonting som man måste ha, och i det så är det det som är den systematiseringen som Nordiskoncernen levererar, men vi försöker att ha så lite systematisering som möjligt i själva lokala genomförandet, och där ska chefen decide how and what we deliver because it is she who meets the guests on a daily basis. The second part that we like to talk about, and I will describe a little more in a later slide, is the natural guest flow. A natural guest flow for us is where we do not have to invest in the fact that the guest comes to us. Preferably we should be in some form of local monopoly, that is, it is only we who are in this quarter or only we who are in this company or only this school. Or maybe, as Pahlanda, where it is a bit more of an oligopoly, we have a number of actors, but it is the actors who are in there and we compete on equal terms. That is a natural guest flow for us. On the other hand, if there were a castle in the countryside where you would need a restaurateur, we are not the right operator. Because then we need to invest in getting the guests to come to this sales place. And we are not very strong there. We are strong in implementing where we have natural guest flows. And the third part that we like to talk about is a nice goal solution. And there we try to describe our level of ambition and we try to describe the importance of not just working with the food itself as such. And if we start with the level of ambition, we usually describe that we would like to be a 4 on a 5 degree scale. 3.8 is okay, 4.2 is good. We do not want to be 4.8, 4.9, because then the guest does not want to pay for that guest experience and then we will not make money in the business. We have said that we will be a little better than our competitors and we set the level of ambition easy to describe for ourselves on a four degree scale of five possibilities. And then we talk a lot about the goal experience itself. And there we have a model called MSM, where we also focus a lot on the environment itself, that is, the goal environment, but also the sustainable environment. And then we talk a lot about service and customer service. And if we look at the customer groups, these are the six customer groups that we also report. Defense, business, university or campus, as we call it, school, hospital, elderly care and travel. And if we look at the natural guest flows, they are easy to describe. Defense is mainly volunteer personnel, but also employees who work in these military garrisons. On companies it is employees or visitors to the workplace, but primarily it is employees who work. For example, at Ericsson, Volvo or Toyota in Mjölby. University of Higher Education, then we are often on a campus, Stockholm University, Uppsala, Södertörn, where we know that there is a natural guest flow due to the fact that there are a number of thousands of students enrolled who have lectures, seminars and so on, who come to the school to meet their friends. Skola är ju väldigt förutsägbart, det är 178 dagar per år och där får man i stort sett betalt för det antalet inskrivna eleverna som man har på just den här specifika skolan. Samma sak med sjukhus och äldreomsorg. Äldreomsorg är nog egentligen den lättaste, att ha ett naturligt gästflöde för att nästan alla äldreboende i Sverige är ju alltid max antal boende på. Så har man 100 boende, då har man 100 ätande, frukost, lunch, middag. 365 days. A little bit is the same thing with hospitals, but where it goes down on weekends and it mainly goes down in the summer and around Christmas and New Year a little bit, but it is quite easy to predict. And on travel, which is then dinners, street restaurants as a natural guest flow. We may not have built up the natural guest flow ourselves, but it has been built up as a brand for a very long time. So we have people who travel by in connection to these links. Or in Arlanda, where we have a number of businesses both outside and outside the security control, and where it becomes a natural flow of guests, given that you have 22-23 million travelers via these link points, or this link point in Arlanda. If you look at the contract, we work a lot with both negotiated contracts according to L&U, but also with contracts that we have with the big companies. And they usually stretch between three to five years, with the possibility of extension for an X number of years. And we have experience and a good track record to actually, in a large way, always get our contracts extended. We have a very small proportion that runs out that we do not get extended on, and we have a very high proportion where we get extended on our contracts. Then we will Let's talk about the financial information, Mattias.

Thank you very much. We have four financial goals for the company. One is that we will have an organic growth greater than 10 percent. We will have a profitability that is between 8 to 10 percent on the EBITDA level. And then we will share more than 50 percent. And then we will have debt. Then it is net debt compared to EBITDA by less than two times. And these are financial goals in the medium and long term. Yes, then we have come to a summary of quarter and period. We see an increase in net revenue compared to the same quarter last year. This is our highest revenue for a third quarter. We ended up with 578 million to compare with 413 million, which means an increase of about 40%, where Organis stands for about 17%. The increased organic net turnover compared to the same quarter previous year is driven by the largest part of existing businesses. The non-increased organic net turnover is mainly due to the businesses acquired in Finland and Denmark. EBITDA reached 61 million, a clear increase compared to 37 million in the same quarter last year. This means that we improved the result and reached an EBITDA margin of 10.6% compared to 9% last year. The improvement is mainly explained by a higher percentage of sales in customer group defense and especially within MRE, but also through implemented operational improvements, for example in the restaurants on Arlanda airport. The period. Even for the period, we see a clear increase compared to the previous year. We ended up at about 1,727,000,000. To compare to the previous year, we ended up at 1,373,000,000, which means an increase of 25.8% and an organic growth of 16.6%. The increased organic net turnover compared to the same period last year is also driven during the period to the largest part of existing units. The increased non-organic net turnover also occurs for the period mainly to the acquired businesses in Finland and Denmark. EBITDA rose to 178 million, also here a clear increase compared to about 118 million last year. This means that we improved the result and reached a EBITDA margin of 10.3% compared to 8.6% last year. And the improvement is also explained during the period mainly by a higher share of sales within customer group defense, and then especially within MRE, but also by implemented operational improvements, for example, before then the restaurants on Arlanda airport, but also a little bit of previous development of unprofitable contracts. Net turnover per customer group. We have had growth in all of our customer groups, both during the quarter and the period. If we look at the quarter, companies increased by about 66% of which about 45% came from organic growth and the remaining about 21% came from the Finnish restaurant business that we acquired in January this year. Organic growth was mainly driven by units that opened in 1924-1925, such as Naturskola Riksmuseet in Stockholm, Värmlands Museum and Axis Communication in Lund. Defense increased by about 67%, of which about 16% came from organic growth. The remaining 52% came from the Danish MRE business RIFO, which we acquired in May this year. The organic increase is mainly explained by the development within the MRE through the NSB agreement, but also by the continued growth within the defence power's restaurant business in Sweden. And here, as we usually say, it is important to highlight that the turnover within MRE varies between the quarter, both within the business that is linked to the NSP agreement, but also then, and RIFO's business. Since the annualization then varies over the quarter and the year. Period. Also the period has a positive growth in all customer groups. And here it affected the same factors as during the quarter to a large extent. And during the period there are many new customers, such as for example the whole business that we bought in Finland and also the business we bought in Denmark, Orifuro. And then there was also restaurant Svaland, restaurant Fyrklöven and so on. And the latest is Axis Communication. So, we have come to some key figures. And as we have previously mentioned, we have generally seen a low need for moving capital and CAPEX, which gives a good cash generation. And all three key figures, moving capital, CAPEX and cash generation, are in line with the levels we previously communicated. And this shows our financial stability and our ability to generate good cash flows over time. So, Thomas, it's time for you to tell us about important highlights during the quarter and the period.

As we have said before, we have applied for a restaurant business in Finland from the change of year. There we see that we have a good demand for us as suppliers. There is an interest in the Finnish market for an upgrade and we have a number of ongoing discussions with potential customers. We have also said that we basically do not intend to grow anything during 2025 on the Finnish market, but we have a fairly good growth during this year. Vi ser också över organisationen för att få den nordvestifierad som möjligt. Vi förvärvade också en verksamhet i Danmark, Orifo, någonstans kring maj i år för att bredda vårt MRE-erbjudande. Vi ser också att den verksamheten fortsätter att rulla på enligt den plan som vi satte upp i samband med förvärvet. Vi ser också en stark efterfrågan kring den här typen av produkter i och med att den europeiska försvarsmarknaden överlag är stark, vilket vi också har refererat till tidigare. About a year ago, Outmills moved into a new production facility in Varberg and in connection with that we had two production lines. As you can see, we have had a strong demand for this type of product and we have now also decided to invest in production line 4. Production line 3 we set up here during this year of operation. But in this regard, we also need to see if we need additional production capacity. And we have a ongoing dialogue with Valbergs kommun. In September, we carried out our annual kick-off with all our staff. And this year, about half of our employees came, which was 750 people. It was really fun. And we put a lot of weight on communicating our values and our way of working, the systematized entrepreneurship. In connection with this, we also took the opportunity to launch our vision, which we have now chosen to introduce in the company, and it is called Horizon 10. A vision is something that we aim for, but that we do not target. We aim to invest 10 billion in the European market, but without, as I said, any kind of time horizon at the moment. But it is above all because we want to have something to gather around and be able to to tighten the bow a little more than our communicated target. If we look at the contract side, we have also mentioned and press release that we have extended the contract with the Swedish Defence Forces until March 31, 2028. There is another year of option for the Swedish Defence Forces to extend to March 31, 2029. We have just recently also received a renewed agreement. We have previously run the Karolinska Institute and they carried out a new negotiation according to LOU, which they were forced to, and in that negotiation we got renewed confidence to run the business, which we are very happy about. We have also submitted an offer to Svedavia about the operation of four cafes, one in Arlanda, one in Luleå, one in Visby and one at Sturups airport. which we have just recently won and which will start in later part of 2026. And since earlier, we have also had a renewed contract with Volvo Cars, which we are very happy about. And it's really the first time. I usually have it as an example of how we work with the systematized entrepreneurship and where a customer chooses to actually choose us once again, where you have historically always changed suppliers. So we have had a renewed contract with Volvo Cars, which we are also very happy and proud of. Then it was time for questions. Yes, we have received some questions here. One question is how Orifo is being developed and if it is according to a plan. I can say this, we do not go in and supervise our customer groups at all, but we are satisfied with the acquisition of Orifo and it goes completely according to a plan and according to the goals that we have as a company. Har vi påbörjat försäljning till Danmark genom Orifo? Där är det ju så att Orifo fick ju ett avtal med Danska Försvaret här någon gång under början av året som det har startats att leverera i, så det sker i dagsläget. Har Orifo haft positiv inverkan på gruppens marginal under kvartalet? Ja, generellt så har ju MRE-verksamheten en bättre och vi har också ett högre krav på den avkastningen och det är klart då att Overall, you can see that the entire customer group has grown and this also generates a positive impact on the group's margin. Vilka kontrakt ligger främst bakom den starka organiska tillväxten inom företag? Ja, vi var inne på det lite granna, bland annat Naturhistoriska, Axis i Lund och... Värmlandsmuseum. Värmlandsmuseum. Tack för det, Mattias. Den finska verksamheten Garam verkar utvecklas starkt. Är det nya enheter som ligger bakom eller vad driver utvecklingen? Jag skulle inte vilja påstå att den utvecklas starkt, och vi har inte haft det som ambition att den ska utvecklas starkt, utan egentligen att etablera oss under 2025 på den finska marknaden. Sen är det så att vi har ju vunnit några avtal i Finland, men det är ju fortfarande så att den finska verksamheten i totalen, alltså den total omsättningen av den finska verksamheten av totalt det vi gör i koncernen, är ju fortfarande en väldigt marginell verksamhet, både i omsättning och i resultat. Så att vi ser väl och hoppas nu att det vi har gjort under 2025 kommer ge bra effekt under 2026 och framåt. Vilka förbättringsåtgärder har ni gjort inom Travel? Ja det är enligt tidigare då. För det första så ser vi ju nu då hur food marketen och konsumtionsmönstren på Arlanda faktiskt stabiliseras. Man börjar hitta till sina restauranger. Vi har också We now know approximately how much revenue we can forecast per day and month, and then we have to manage correctly. I think we are on the right track right now, and there are of course always improvement measures. We are looking at La Giraffe and its furniture in the current situation, as a small detail that can only be mentioned here, but for example to increase revenue there. MRE has continued to deliver. How do you see it in quarter four? We are not leaving any forecasts. We maintain our understanding that we have our financial goals, which we rather under-promise and over-deliver. But as we said earlier, it is a market that fluctuates over the quarter, but not over the periods. If you look at it from a year's perspective. And we also see an incredibly strong growth overall in the defence segment, but also in the civil readiness in the current situation. And I don't mean specifically for our market, but what we see in the defence strategy that the whole of Europe is doing in the current situation. Har ni vunnit några större kontrakt under det gångna kvartalet eller i början av Q4? Ja, Swedavia var ju ett sådant kontrakt bland annat. KI nämnde vi också. Och sen så har vi lämnat en del anbud där vi väntar på att den slutliga tilldelningen ska bli klar och då kommer vi kanske inte pressmeddela det enligt marknadsregelverket utan mer egentligen att bli glada av att ha vunnit de här kontrakten. Vi får se. If nothing else, I will mention them when we leave the whole year. Can you say anything about the start of Q4? Not more than that it is continuing according to the plan and we are moving towards our financial goals. Then we will continue here. Are the ambitions to continue with acquisitions within the defence or are you satisfied with the presence of exposure to the defence? To answer this half-critically, we are never satisfied. You can interpret it however you want. Then we have a question about EBITDA margins and related to defense. We don't want to show the different ones, but as I said earlier, especially the MRE and travel segment has a higher requirement for issuance, because they also have other financial structures, including investments and storage. Går det säga något om Försvarsmakten restaurangverksamhet växt organiskt? Nej, vi kommenterar inte det, men som jag sagt tidigare så växer ju Försvarsmakten generellt i Sverige på grund av att vänpliktsvolymerna ökar. Kan ni ge en inblick i den finska och danska marknaden? Dessa marknader liknar svenska av sin fragmentering och tillväxtmöjligheter. Ja, men generellt skulle jag vilja påstå det. Jag skulle nog vilja påstå att i alla fall större delen av den nordeuropeiska marknaden ser ungefär ut som den svenska. That means a number of multinational big corporations that have the big contracts, a few middlemen and then a very fragmented market with many local restaurants. How does the key of Nordjet's ice card look like? I can't answer that. I don't have the data. We'll have to bring it with us next time. Give some details about horizon 10 in terms of time. Are you talking about 2035 or 2040 as a vision? Yes, that's exactly what I said. A vision is not set in time, because then it suddenly becomes a goal. But we have reasoned that we will grow with more than 10% organically per year. And after that, there is also acquisition in this. That is the basis. But to tighten the bow a little harder, I feel that we need to have an ambition level that is a little more ambitious, and therefore we have launched this And in that, we want to reach 10 billion in revenue. But as I said, we haven't set the time yet. But we are working to try to reach our vision as soon as possible. But we keep our financial goals. Are there any big military exercises planned in the future? Det är inte som Aurora 2023 i dagsläget. Däremot så ligger Försvarsmaktens övningsplan på Försvarsmaktens hemsida så den kan man gå in och kolla för de närmaste 24 månaderna framåt. Ja, hade du fått in någon annan fråga via mail Mattias?

Nej, ingen som inte vi har fått upp här så jag tror faktiskt att vi har gått igenom alla frågor som har kommit in den här gången.

Vi kan väl nämna det också att nästa gång så kommer vi ha en lite kortare företagsintroduktion och gå mer pang på siffrorna och de som intresserar då att läsa på sig mer om bolaget, antingen så finns det en rätt så bra podd på Spotify där jag blir intervjuad, den är ungefär 50 minuter, där det berättas rätt much about the company and how we think. But then you can also go back and listen to earlier presentations that we have had. Yes, we thank you for us. We thank you for us. That's all for today. Have a nice week. Goodbye. Goodbye.