Projektengagemang Sweden AB (publ)

Good morning and warm welcome to the presentation of the book-end communiqué for project engagement and the result for the fourth quarter of the year 2024. I, as a welcome host, is Andreas Hattigiorgo and I am the CEO of VEDO. I have been in the role for almost six months and with me I have Finance Director Lislot Haglind. This presentation contains ten pictures divided into three parts. First three pictures about market outlook, three pictures about the business segment, two pictures about our financial position and finally a picture that summarizes our focus now and forward. The building on the photo you see in front of you is from Kulturstråket in Uddevalla, a project I am very proud of that we are a part of and contribute to. It is an architectural project. We have related equipment of three existing buildings. The project aims to create a hub for cultural life, for the union life, the visiting environment and for society. This fantastic vision that we are working on is expected to be completed in the summer of 2026. We start, as I said, with a market outlook. Here I note that it is still a This is a very important part of the project. It is a very important part of the project. Will it grow before the tax cuts have an effect on the market? The impact on our services is enormous, not least in the background of all the big and complex challenges that society is facing. You have certainly seen the latest report that came as late as yesterday from the EU climate service Copernicus, which shows that January 2025 is the hottest January ever. To overcome the climate challenge, it needs to be built smarter and more sustainable, and the Swedish property stock needs to be restored. Here is our combined competence and our experience with our engineers, architects and experts, completely determined to succeed. It is not only the climate challenge that drives the long-term demand for our services. We also see regulatory requirements that create great needs for our customers to invest and rebuild, to develop existing buildings and neighborhoods instead of simply just tearing down and rebuilding new ones. We also see that the industry is changing to fossil-free solutions and the energy needs are increasing there as well. It requires quick investments in solar, wind and water power. We also see what is happening in our environment almost daily, with the current geopolitical uncertainty. This requires national resistance, civil readiness, resilience and special properties of various types that need to be invested massively in. There is a growing demand for smart, effective and sustainable technical solutions for intelligent, energy-effective buildings. We have an AI revolution right now, and the digitalization that has been intensified powerfully in recent years looks like it is increasing even more in power and speed. Finally, regarding the long-term underlying needs that will drive the demand, there is also a great need for circular solutions for sustainable buildings and neighborhoods in cities and in society in general and also in the industry. With that I would like to sum up that we have the experience, the competence and the ability to make a difference together with our customers. Project engagement is a perfect partner in this work. When we summarize our fourth quarter for 2024, we see that we have an impact on the continuing market. We delivered 2.8 million SEK in EBITDA results. The EBITDA result was lower in the quarter due to a weak result development in the business segment of the construction environment. I will go back even more to details on how we see that. The turnover was negatively affected by the adjustment of the staff that was made mainly during 2023 when the market situation weakened. The turnover was 196 million SEK in the quarter. We succeeded with team price increases in the quarter and achieved a somewhat better debt rate. We also saw that our cost effectiveness and our improvement program gave positive effect. Now I want to go further and look closer at the underlying business segments. We have three business segments, architecture and management, which we will look at here, construction environment and installation. The photo refers to one of our tasks within the business segment, architecture and management. We are now helping Vattenfall with project management and support by providing the properties of Vattenfall with charging infrastructure in order to electrify the fleet of company vehicles. A very exciting task that we are very proud of. Regarding the business segment, architecture and management, there was a weak will to invest in commercial properties and housing. But continued order in the community buildings, industry, logistics and defense. We improved the result by increasing the debt rate and team price increases. We delivered SEK 69 million in turnover during the quarter to an EBITDA margin of 6.3%. Regarding the task, we have also been given the opportunity to contribute to the construction and traffic management of the region of Stockholm with the construction of the tunnel track. We have also contributed to the landscape architecture of the Huddinger municipality and the interior design of the Vasa Krona and Uppsala municipalities. At the same time, we see great needs of advice and project management within the domain of community buildings, resilience in city development, safe and safe places. And of course with our expertise and our ability to identify climate risks and needs of climate adjustments in the already built environment. We move on to the business segment, construction and environment. But first regarding the image here. We have worked within this business segment with land and design and order support for the new construction of Värmlands largest solar power plant and battery plant. Under 2024, solar power plant and battery plant were installed as a lead in the Rotneros' desire to increase the amount of renewable electricity in their portfolio, but also to reduce exposure to the electricity market. The segment as such. The market has been a continue challenging one, the lack of investment will. This is especially true for the new construction, as I said, where we are affected by delays, upsets and lack of investment decisions. The results were affected by lower debits and downscores. Among other things, Särnäck is here, as we also mention in the published report. We delivered 69 million SEK in turnover during the quarter, the EBITDA margin was negative 3.6%. Now we are focusing on, in a higher extent, to take land and move forward even more in the parts of the market where the growth potential exists and the will to invest higher. For example, when it comes to urbanization, where we have a lot of experience of very complex projects. Also when it comes to sustainable new construction and we are also good advisors in the pre-cleaned areas. But we note that we must get better every day on each of the possibilities that exist. Now we are working intensively with sales and improving our processes and our ability here and also improving project support. It will have a positive effect in the coming quarter. A few words about several important missions that we have received during the quarter. Development of the entire inner city quarter, both in Stockholm when it comes to the Sturekvarter and in Gothenburg when it comes to the Johanna quarter. Another thing that I think is worth mentioning is the development and equipment of the housing estate from the 70s in a co-operation project for family housing and Skanska. Mission Cream in their aim to become fossil-free by 2035. Together with the farmers, we are creating production of protein as a development towards more sustainable food. A very exciting project. And finally a new bath house in Näsjö municipality where we are responsible for environmental and energy co-operation and perform life cycle analyses. The third business segment we will move on to now. And that is the last picture I will show about the business segment. Before I go into the numbers and the results for the quarter. The picture you see here shows the largest airport hotel in the Nordic region. And it will be at Stockholm Arland Airport. We have a task to continue the design work with VVS Design, Sprinklert, El och Tele. This project includes our task hotel room, congress hall, meeting facilities, the restaurant with more. When we look at the results we see, which I mentioned initially, also a positive development trend. Despite a weaker quarter, where we have been affected by some of the delays and upsets, which affects the efficiency. The turnover of 66 million SEK to an eternal margin of 6%. We improved the living standards, increased the degree of living and have an increasing order stock. During the quarter we have received a task in social construction with schools and sports halls in Stockholm. We have energy supplies in academic houses, facilities in Malmö and Lund. We have new buildings of 160 apartments in Klokkalund. And continued design work with hotel and congress facilities in Arlanda, which I mentioned just now. And as you can see, a vision image on the picture. In summary, when it comes to the business segment, we see a good demand and an increasing need for energy, control system, surveillance, optimization of services within community facilities. And then I will say especially safety facilities, where we are very well positioned. I have a lot of experience and a lot to show here. We continue the move from new construction projects to re-construction projects. Where we also have a very broad competence and also capital competence. And within the segment we continue to focus on supporting customers also within the energy environment and the green transformation of society. With that we leave our business segment and I hand over to finance director Liselotte Haglind to tell us about the financial overview. Thank you very

much, Andreas. We will look at the financial development and summarize January to December. Where we have accumulated results that have a better EBITDA result than last year. EBITDA was 30 million kronor, which means a margin of .9% compared to last year's 0.5%. Results affected by the cost of empty office and a reservation in unsafe customer service, which summed up to a total of 2.7 million kronor. The result last year was also affected by the cost of efficiency measures related to local companies. Which means that underlying results for the year in comparison are in level with each other, but with a better margin this year, that is, 2024. The turnover was 769.5 million kronor, a reduction of 13% compared to last year. Accumulated we have no calendar effect. All three segments have fewer employees than last year, but we continue to recruit in areas where we see that the market is still profitable. We have recruited just over 100 people this year, and we continue to actively seek expertise as a question of our customers. However, this year it is not enough to recruit to show positive growth figures, much linked to the adaptation we made in 2013 in the staff. However, we have a development in Q4 with a better net than before. Two of three segments have accumulated a result improvement compared to last year. Architecture and management improved their results from 3 million kronor to 11.5 million kronor. Installation improved from 6.1 to 11.5 million kronor. And the segment construction and environment, where we have a negative result development, it landed at 7.3 million kronor compared to last year's 22.4 million kronor. This result improvement mainly depends on a continued effort to make cost efficiency, linked to premises and cost-overlay. As reported earlier, this work has gone well, and we have savings linked to premises of 20 million kronor annually from this year, 2025, which is a comparison with the 22-year cost level. We will continue to focus on efficiency and have a large cost focus also forward, and I think our in-work method is well-controlled. The decreasing market has affected the behavioral rate, which accumulated is lower than last year, 71.4, but slightly better in the last quarter compared to last year, 72.1. We continue to see a potential to increase the behavioral rate. Our ambition is to return to historical levels. A percentage of the behavioral rate corresponds to about 10 million in results throughout the year, so the main focus forward is to increase the revenues. Something that is still developing positively is our team prices, which is partly compensated for our loss of behavioral rates. We see good price increases in all three segments and have, as we have said earlier, good processes to work with this question. We adjust our care levels to be competitive, and important to balance with the increase in revenue costs that we have, so we have good margins there. Summary, two of three segments have improved results accumulated in December and an average result of 30 million SEK, .9% in the movement margin. Let's look at the financial situation for the whole year. The period's results per share rose to 0.72 against minus 0.47 SEK. The cash flow from the current activity was SEK 100 million against 72 previous years. This also affects the return on tax in Q1 2023, and we also have positive effects on the cash flow, as you understand in cost reduction. Net debt EBITDA is 2.2 times 2.8 the previous year. We move as we should, down to the level of debt. The work to reduce office expenses affects this in the right direction. Here we have not reached the full liquidity effect, much depending on the length of the contract. Net debt EXCLUSIVE IFRS 16 at the beginning of the quarter is SEK 119 million, and the net debt is SEK 192 million. Finally, the Board suggests that no division should be left. With that, back to you Andreas.

Thank you, Liselott. We have a focus forward on strengthening our ability. It is not enough to underline that it is not about our ability to sell and continue to deliver quality in our tasks. We will also move forward with the position on the market where the transition drives the demand. For the whole year 2024, we improve our profitability in two of three business segments. In the business segment where we do not see improvements, i.e. the business segment of construction and environment, we are now working intensively with increased sales, better ability, better control and higher efficiency. We continue to work with cost control and we have a positive result effect from the optimization of the office units, which now goes up to SEK 20 million from 2025. The market continues to be on the lookout, the recovery will continue to take some time. We also see this in various conductive reports that are coming. The focus now and forward for us is to deliver the highest possible quality in our tasks regardless of the situation. We have good relations with our customers and we will continue to be close to them and also now to more new customers to help them with their challenges and capture the opportunities that actually exist. Because there I am convinced that the possibilities are more than the challenges. We will intensify sales, increase the effectiveness of profitable growth forward and then we need to actively recruit within all areas where we see growth potential. There we want to recruit more competent and competent employees with high potential. Finally, on that topic, and this cannot be fully emphasized, our greatest success is our employees. I am only five months, soon six months on the job and I must say that I am incredibly proud and impressed by the competence, experience and creativity that our engineers, architects and experts possess. When I visit projects around the country, whether it is infrastructure related projects, new construction projects or other types of reconstruction projects or analysis for that part, design, architecture, I am so incredibly proud and that is why I say that I feel a sense of future faith and I will also be careful to thank all employees for their efforts during the year. I also want to thank our brave customers, partners, shareholder and look forward to continue together for the new society in 2025 with sustainable and innovative solutions and the expertise we can offer. With that, I conclude the presentation and look forward to opening up for questions. Thank you.

If you want to return your question, kindly press square six. The next question comes from Julia Sundvall from ABG Sundal Collier. Please go ahead.

Hello, thank you for your questions. I would like to start with a question about the better position in the architecture industry. I would like to know, what do you see in the future? Is there a turning point in the internet or do you have another picture?

Thank you for your question, Julia. It is absolutely right that you say that we see light in this business segment. It is interesting for several reasons. We know from historical experience that services within architecture are not often early in a construction cycle in general and a construction cycle more specifically connected to the construction structure. We are hopeful about these signals, but it is too early to talk about a definitive turning point. We also see in the industry analysis that the architecture sector is a little brighter in general. It is a time to say that there is a definitive turning point. The recovery will take place gradually.

Further, in the construction environment, we see that it is a little tougher. How do you assess the market conditions there?

There will be a successively improvement in the market. The Institute for Construction and Construction published a report on the situation in the Swedish economy and specifically on the construction sector. There, the recovery will take place gradually, but perhaps later this year than earlier. We can only say that it is a We have a lot to build on, but we can also get better when it comes to efficiency, ability, sales, control and all that I have mentioned to create conditions for sustainable growth forward.

On the topic, you have talked about 2025, that you will focus on sales and recruitment. What would you say is your highest priority in 2025?

It is to move forward the positions and focus on the segments where we see that there is growth potential. There is good potential in parts of the market, industry. We fill up the order logs when it comes to those segments. We are also thinking about security related projects, special properties, parts of the social construction sector that move buildings and the environment around things that are actually needed to handle the challenges of society. We will put full force into that. Then it is also about that we plan to switch up when it comes to recruitment. We have recruited a lot during 2024. We have a more stable staff turnover now, but of course we will ensure that we get an even lower staff turnover and that we manage to attract and keep up with the employees who want to be part of our company and renew and improve society.

Great, that was all from me.

Thank you very much. Thank you, Julia.

Thank you. We have no questions in the file.

I would like to conclude by saying that despite the challenging market situation, there is great enthusiasm and faith in the future. I see that we have started a new chapter in the company's journey. We are building further on our strengths. We will focus on buildings and their environment as the strategy says. We work every day step by step to improve our ability to move forward in the market position. We will also improve our ability to be valuable and do what we do best. A final comment and reflection. For me, project engagement for innovation and leading competence in construction, design and architecture is important. We will build on the creativity and intensify the transition to a sustainable, resilient and attractive society. I am convinced that we will be able to make project engagement more effective, profitable and attractive and lead the company as a self-confident partner in the renewal of society. Thank you for being with us today and for your interest.