Projektengagemang Sweden AB (publ)

Good morning and welcome to the presentation of the project engagement results for the third quarter of the year, 2024. My name is Andreas Attegiorgio, I am the new CEO of the company since August 19, 2024. With me is my financial director, Liselotte Haglind.

Good morning.

First, a little bit about myself. I came last from the role as the CEO of the Stockholm Chamber of Commerce. I have also been an affiliate researcher at the School for Architecture and Social Development, KTH. I have been in charge of the foundation Affärsvärden and some others. A red thread in my career has been precisely urban development. Hur skapar vi morgondagens framgångsrika, hållbara, resilienta, innovativa, attraktiva stad och samhälle? and is very inspired to take on project engagement as CEO and CEO. I also work at the State Department, the World Bank's headquarters in Washington D.C. and have a doctorate in national economy at Lund University and have also studied and taught at the University of Michigan. This presentation today has ten pictures. Three images will cover the market and outlook. Three images will cover our three business segments. Two images will cover our financial position. The final image will cover focus, now and in the future. Of course, there will be time for questions. The building above the picture you see is from the Falköping City Building Award 2024, where we are proudly nominated. We have then shaped the building and the outdoor environment here as an architect. We start with a market outlook and here I want to note that it is still a waiting market. and a watchful desire to invest. This watchful desire to invest and the market situation is in its third quarter. Commercial properties continue to show a weak development and housing construction is still on low levels and this has affected us. Here we also know that there is a deterioration before a less straining monetary policy, that is to say, these interest rate cuts that have been carried out, can get a positive effect on the market. And just as we have said earlier, then these The effects of a somewhat more expansive policy will have a certain delay before we can see the effects. But what is positive in the long term is that we have a growing need for our expertise and our services. For those of you who saw the UNEP report last night, you can see that the world is going towards 3 degrees of warming during this century. And we know that the Paris Agreement says that we can achieve a maximum of 1.5% in heating to overcome the climate crisis, so all countries need to do a lot more. But what is hopeful, I think, is that it is still said in this fresh report that energy and technology make it possible to reach the 1.5 degree goal. And from our perspective, and what project engagement can deliver, it is precis vad världen nu behöver i form av en omställning inom energi. Vi ser också ett underliggande starkt behov av våra tjänster inom industri, försvar, stadsutveckling och så vidare. Det här kan vi återkomma till. Summa summarum, det är komplexa utmaningar som samhället ställs inför. Vår kompetens hos våra konstruktörer, installatörer, miljöspecialister, projektledare, arkitekter och andra experter behövs verkligen. As we talked about earlier, the green transition has affected the market, but also the transition into security, resilience and resistance. We also see that we have strong regulatory requirements coming from the EU, but also from other countries, which increases the need for our customers to develop existing buildings and their close environment. Sometimes, instead of tearing and building new ones, And when these changes occur, the complexity of these projects also increases. And then we see that we can really be a strategic partner for companies that want to change. Vi vet också att industrin ställer om till fossilfria lösningar, energibehoven ökar, det krävs snabba satsningar på solvind, vatten, NATO-inträdet för vår nation kopplat till underhåll av befintlig infrastruktur men också nya krav på nationell motståndskraft och civilberedskap. So, continued good demand and increasing needs in control systems, data collection, supervision, optimization of operations, for example in safety facilities and in general in buildings and their close environment. So, from outlook to insight. Our third quarter for 2024, we deliver an improved margin in a monitoring market. Despite the fact that the third quarter is the weakest seasonally for us, due to the high number of vacations, both with our consultants and with our customers, we increased the EBITDA margin to minus 4.6% versus minus 12% in the previous year. The underlying result, the exclusive cost of local adjustments that took place in the third quarter of 2023, is the result in line with the previous year. Under 2023, the company's staff strength decreased as an adjustment to a weaker market, which affects the turnover during the quarter, which is now 145 million. This is somewhat lower than expected due to a weak start rate after the summer. Partly due to delayed start-ups, the level of activity increased in September, which was good. The effect of the lagging market has affected the rate of debiting. This effect is compensated by increased tim prices and the good effects of our cost and efficiency programs. Two out of three segments show better margins. Vi fortsätter givetvis att rekrytera aktivt inom områden där vi ser bra tillväxtmöjligheter, bland annat inom fastighetsautomation, skydd och säkerhet, energi och miljö. Så, när vi avslutar kvartal 3 2024, då har vi, tack vare våra kostnadseffektiviseringar, en ackumulerad marginal om 4,8% och ett ackumulerat EBITDA-resultat om 27 miljoner. Now I want to move on and look at our three underlying business segments. We have three business segments. It is architecture and management. It is construction and environment, as well as installation. We start with architecture and management. There is still a weak desire to invest in commercial properties and housing, but a positive demand in industry, logistics and defense. Vi ser ett förbättrat resultat drivet av bättre kostnadseffektivitet och timprisökningar. Omsättningen hamnar på 48 miljoner och evita marginalen på minus 5%. When it comes to assignments, we have, among other things, gained trust from the region of Skåne for appointment assignments for Skånes University Hospital in Lund, as you can see here in the picture. Climate risk and vulnerability analysis to MKB Fastighets AB, which is Malmö's municipal housing company. arkitekturuppdrag för nybyggnation av gruppboende åt Orust kommun och ett vunnet anbud för utformningen av inredning av Försäkringskassans lokaler i hela Sverige. Vi styr verksamheten mot att tillvarata de behov som finns kopplat till hållbarhet, resiliens i stadsutveckling och att identifiera klimatrisker och behov av klimatanpassning av redan byggd miljö. Moving on to construction and the environment. Here, the market is still challenging, especially when it comes to new buildings. We see both delays and delayed investment decisions. The result is affected by a lower rate of debiting and slightly higher reservations in the form of project declines. Omsättningen slutar på 53 miljoner med en ebitda marginal om minus 8%. Vi fokuserar nu i högre utsträckning på de delar av marknaden där det finns tillväxtpotential och investeringsvilja, till exempel inom ombyggnation, hållbar nybyggnation samt rådgivning inom exempelvis förorenade områden. Vi tar initiativ för förbättrad projektstyrning. Under kvartalet har vi exempelvis fått uppdrag för ombyggnation av takytor och fasader på norra Älvsborgs länssjukhus. Utveckling av JMs nya koncept för flerbostadshus med trästomme i södra Stockholm. Projecting of the Valgärdet school in Karlstad, as you can see in the picture. And invitation with focus on circularity, soil environment survey and more. For Stockholm's water and waste relocation of Sätra recycling center. Finally, the segment installation. Here we see a continuous positive result development despite a lagging market. Omsättningen var 48 miljoner kronor och EBITDA-marginalen minus 5% i kvartalet. Kvartalet visar också en fortsatt förbättrat resultat drivet av kostnadseffektivitet, högre debiteringsgrad och timprisökningar. During the quarter, we have, for example, received an assignment on the renovation of several housing units for young people in Lund for IKARNO housing. For academic housing, we have received an assignment on energy measures and planned reconstruction of schools and preschools in Uppsala. We see an increasing need, among other things, for energy, control systems, supervision and optimization of operations within social housing. So, with these three pictures we leave our three business segments and I want to hand over to the financial director Liselotte Haglin who will tell more about the financial overview.