Projektengagemang Sweden AB (publ)

Good morning and a warm welcome to the presentation of the project engagement results for the first quarter of 2025. My name is Andreas Attegiorgio and I am the head of the board of directors. With me I also have financial director Malin Ekstrand who started with us in March and whom I warmly welcome.

Thank you, Andreas.

This presentation contains ten pictures, three pictures of the market view, three pictures of our business segment, two pictures of our financial position and finally a picture that summarizes our focus now and forward, and of course after that you open up for questions and answers. The building here in the photo that you see in front of you I think it is very exciting and therefore I just want to say something short about it. It is from the quarter model 4. This is a project that we have been involved in and that actually during the quarter received the prestigious award for the year's building 2025 in the category of housing. And this is something that we are extremely proud of and that is a quota for the knowledge and quality and creativity we deliver. Huset har bytts på en befintlig innergård i Vasastan i Stockholm med trästomme. Vi vet att projektet som sådant har bidragit till ett lägre klimatavtryck än vad det annars hade gjort om det hade bytts med mer traditionella metoder. Vi har ansvarat för konstruktionen här, vi har levererat bygghandlingar och vi har Bidragen med kompetens också inom VVS och landskapsarkitektur, EL, VA. Med andra ord ett multidisciplinärt projekt, samverkansprojekt som vi gärna gör mer av och har ambitionen att göra mer av framgent. Vi inleder med en marknadsutblick och konstaterar att det fortfarande är en avvaktande marknad och en tvekande investeringsvilja. This affects our revenue and our results even in the first quarter of 2025. Commercial properties have shown a weak development and housing construction continues to be on relatively low levels, which primarily affects our business segment, construction and environment. And I will return to that, of course. We see that demand in industry, energy and safety properties är relativt sett något bättre. Det finns stora möjligheter framåt. Vi vet att det är ett långsiktigt underliggande behov för vår expertis och våra tjänster. Samhällsutmaningarna, som vi alla vet, är enorma. För att kunna hantera de här utmaningarna så krävs det stora investeringar. Klimatutmaningen kräver att det byggs smartare och mer hållbart. And we know that we need to change that. If we are going to succeed with climate change. And here is our combined competence and experience with our existing engineers, architects and experts. It is crucial to succeed. And that is what I mean by the fact that there is a long-term strong demand for our knowledge and our services. Det är inte bara klimatutmaningen som driver på den långsiktiga efterfrågan på vår kunskap och våra tjänster. Regulatoriska krav skapar till exempel behov hos våra kunder att utveckla befintliga byggnader och deras närmiljöer istället för att riva byggandet ut. Regler ändras dessutom, som nu med omnibus, vilket gör att det är mycket att hålla reda på för fastighetsägare och här kan vi hjälpa till. We also know that the industry is switching to fossil-free solutions and the energy needs are increasing. This requires rapid investments in fossil-free energy. We also see that the geopolitical uncertainty in the world continues, but this places major demands on national resistance, civil readiness and resilience. We are also helping our customers and society to get better. We have a growing demand for smart, effective and sustainable solutions for intelligent and energy-efficient buildings that take full advantage of the potential in digitalization, modern technology and AI. Och slutligen så stora behov av cirkulära lösningar för hållbara byggnader och närmiljöer som inte bara möter krav utan också skapar trivsel, attraktivitet och gynnar hälsovälmående i våra städer och i vårt samhälle. Så sammantaget, vi har expertisen, vi har erfarenheten och vi har kreativiteten att göra skillnad tillsammans med våra kunder. PE, vi är en bra partner i det här arbetet. If we go over to the result for the first quarter, when we sum it up, we see that we are affected by a lagging market. The turnover became 195 million kronor in the first quarter of 2025. It is lower than the first quarter last year, resulting in fewer employees. We delivered 5.6 million kronor in EBITDA results, also lower than the first quarter last year, mainly due to a weak result development in the business segment, construction and environment, and reservations for unsafe feedings linked to the competition by the customer Cortus. We achieved a debiting rate that corresponded to the first quarter last year, but with variations between segments. We also managed to achieve higher hourly prices in the quarter and we also saw that our cost efficiencies gave effect. Now I want to go on and look closer at the underlying business segments. Our three business segments are architecture and management, construction and environment, as well as installation. The picture here, by the way, refers to a very exciting and nice project within architecture and management, an interior architect project for the customer Söderberg & Partners, which we completed during the quarter when they wanted to create a modern and attractive head office in Stockholm. For this segment, architecture and management, there was still a weak desire to invest in commercial properties and housing. But we see a relatively stable order stock in the segment. 64 million kronor was the turnover in the first quarter to an EBITDA margin of 3.9%. When it comes to tasks, we received trust in the quarter to do the design of Färladslyktan in Lund in collaboration with Peab and Lund Municipality's property company. We have drawn this in advance. The building and the project contains different elements, school, sports hall, district library, cultural school, meeting place for seniors, so it is really comprehensive. In addition to this exciting mission, our interior architects have also received several missions from the Migration Agency. On the environmental side, we have also had the opportunity to carry out additional climate risk and vulnerability analyses for, among other things, ICA properties and technical and environmental-related due diligence for the property company Emilshus. Vi ser fortsatt stora behov av rådgivning och projektledning inom samhällsbyggnad, resiliens i stadsutveckling, säkra och trygga platser och att vi är med och hjälper våra kunder att identifiera och möta klimatrisker, klimatanpassad byggnation, inte minst i redan byggd miljö. So this, together with the demand for project management services in larger infrastructure projects and social facilities, I would say that it is strong. And we also see a good opportunity and market for development of buildings in industry, energy and social facilities. From and with the 16th of April, I have been appointed as the head of business areas for architecture within the segment and we have started recruiting a new head of business areas. When it comes to the segment of building and environment, First, a short comment on the picture here. This is East 1 in Gamlestaden in Gothenburg, earlier SKF's headquarters, built in 1967. This house is being developed in a large-scale way, with, among other things, the construction of seven floors, where we have been given the task of starting this design. When it comes to the results for the segment, the market has been a continuous challenge, especially when it comes to new buildings. Preventive decisions on the start of new project projects, not least, have negatively affected the degree of debits. The segment has a weak result development during the quarter. Vi levererade 69 miljoner i omsättning och en ebitda marginal om 1,5 %. När det gäller uppdrag så har arbetet med omfattande ombyggnader och fastighetsutvecklingsprojekt samt industriprojekt fortsatt under kvartalet med flera spännande uppdrag. Jag nämnde SKFs tidigare huvudkontor här relaterat till bilden. Vi har också fått möjlighet att vara med i det så kallade Kista Square Garden som var tidigare Ericssons kontor. Där har vi fortsatt med projektering av återstående etapper, liksom ombyggnad i ett annat projekt när det gäller norra Älvsborgs länssjukhus i en fjärde etapp. Andra intressanta uppdrag som är värda att nämna är certifiering åt Castellum enligt LEED O plus M and energy coordination to Mikasa facilities. In general, we see a stability in our services in this segment related to industry facilities and development of existing buildings with tasks such as climate risk and sustainability analysis. The need for services within just reconstruction remains. And the demand for our competence when it comes to sustainable construction, tree trusses, recycling, it increases. The third segment, installation. The picture here is related to an assignment we have in this project in the first quarter regarding new lighting and equipment and existing lighting trafikkontoret och exploiteringskontoret i Stockholm. I det här segmentet så ökar vi vår omsättning under första kvartalet 2025 och levererar stabilt resultat trots en avvaktande marknad. Vår omsättning i segmentet var 70 miljoner kronor vilket motsvarar en tillväxt om cirka 4% och ebitda marginalen var 6,7%. Vi förbättrade våra arbetsnivåer, ökade vår debiteringsgrad och ökade vår orderstock under kvartalet jämfört med första kvartalet 2024. Exempel på intressanta uppdrag inom segmentet under kvartalet är bland annat projekteringen av Nordens största flygplatshotell åt Swedavia Real Estate. Ett annat uppdrag åt Jensens förskola i Uppsala åt academic buildings. Pågående uppdrag med större volymer genomförs inom områden som säkerhetsfastigheter, samhällsfastigheter, kontor, vatten- och avloppsreningsverk. Efterfrågan är god och ett växande behov finns inom energi, VA, styrsystem, övervakning, optimering av drift inom samhällsfastigheter. where we also have a strong position. And we also see that the transition from a new construction project to a reconstruction project continues, where we in the segment have a broad and large competence. With that, I will end the presentation related to the various business segments and hand it over to the financial director Malin Ekstrand who will give us the financial overview. Malin, please.

Thank you, Andreas. Now we will move on to the financial development and summarize the first quarter. EBITDA was 5.6 million kronor, which means a margin of 2.9 percent against the previous year's 8.3 percent. There is no calendar effect in the quarter. The result is, as mentioned earlier, affected by a reservation for uncertain customers linked to the competition in Kortus at a total of 2.5 million kronor. There we are now fully reserved, and this reservation does not affect any individual segment, but it is under the post in general. The result of the reduction in the quarter comes primarily from the construction and environment, where the result for the segment became 7.3 million kronor less than the previous year, and this is mainly due to a lower degree of debiting and a lower number of employees. Omsättningen var 195 miljoner kronor, en minskning på närmare 11 procent mot föregående år. Det är främst på grund av färre medarbetare i samtliga segment och sedan den lägre debiteringsgraden inom bygg och miljö. Vi fortsätter att rekrytera inom områden där vi ser att marknaden är gynnsam, men för kvartalet räcker inte den rekryteringen för att visa positiva tillväxtsiffror. Våra timpriser har utvecklats positivt, vilket delvis kompenserar förminskningen i debiteringsgraden och det minskade antalet medarbetare. Vi justerar löpande våra timpriser för att kunna vara konkurrenskraftiga inom alla segment. Vår kostnadseffektivisering kopplat till lokaler och omkostnader bidrar också positivt till kvartalet resultat. Vi har nu besparingar kopplat till lokaler på cirka 20 miljoner kronor årligen i jämförelse med 2022 års kostnadsnivå. Vi kommer att fortsätta prioritera effektivitet och ha ett starkt kostnadsfokus framöver och vi kommer att agera på möjligheter till ytterligare besparingar inom detta området så snart det uppstår. Så för att summera, samtliga segment har lägre resultat i kvartalet, framförallt bygg och miljö. which gives a total EBITDA result of 5.6 million kronor and 2.9% in turnover margin. Then we will go over and look further at the financial position in the quarter. The period result on the share went up to 0.11 kronor compared to 0.51 kronor last year. The cash flow from the ongoing business was 22 million kronor compared to 42 million kronor last year. Skillnaden kommer främst från det lägre resultatet i kvartalet samt från förändringar i rörelsekapitalet. Här påverkar även en återbetalning av betalt skatt kvartalet positivt med 5,9 miljoner kronor. Vi har en positiv utveckling av vår skuldsättning. Nettolåneskuld i förhållande till ebitda har förbättrats till 2,3 gånger från 2,5 gånger föregående år. Nettoskulden har minskat till 166 miljoner kronor från 277 miljoner kronor och där ser vi att effekten av att minska kontorsytorna har bidragit positivt till skuldsättningen. Styrelsen föreslår att ingen utdelning lämnas. Med det så lämnar jag åter till dig Andrea.

Tack för det Malin. Så för att summera. Vi har fokus framåt på flexibilitet och värdeskapande. Omställningen driver på en långsiktig efterfrågan på vår kunskap och våra tjänster. Konjunkturen och omvärldsläget blev som vi alla vet osäkrade under kvartalet. Marknaden är fortsatt i vissa delar avvaktande, vilket skapade en mer återhållen investeringsvilja. De åtgärder vi vidtar, särskilt inom segmentet bygg och miljö, omfattar förbättrade affärsstyrning och ökad marknadsbearbetning, inte minst inom växande områden som industrifastigheter. Vi jobbar med vår effektivitet och utveckling av ledarskapet. Dessutom arbetar vi för We have increased cooperation in order to deliver multidisciplinary packages of services. We secure a more efficient business based on an optimized cost structure. And we recruit more engineers, architects and experts in areas where we see opportunities. Finally, our employees, our biggest access. That we have been a part of at least two projects that have been awarded in the building of the year is a clear sign of the knowledge, quality and creativity we offer. Our business segments complement each other well and we are also well positioned to meet the needs of our customers and society. With that, I conclude the presentation and open up for questions.

Thank you very much. Good morning Andreas and Malin. I only have a few questions.

The first one is about Thank you for the question.

The order situation is stable and even somewhat improved. And then you should also add that since we are fewer employees, the order situation is considerably better per employee. It is within the installation that we have seen a positive development of the order block and in general it is relatively stable. So it is mainly the installation that drives that development.

Thank you very much. Can you tell us what is specific about the installation? Are there a few specific customers or is it more extensive?

Jag nämnde exempelvis projekteringen och utvecklingen av Nordens största flygplatshotell, Skywalker. Det är ett väldigt spännande, omfattande projekt som vi är väldigt stolta att vi har fått förtroendet att vara med i. Jag förstår.

Tack. Sen har jag en fråga på kostnadssidan. Ni har pratat lite grann om den här nu och ni har implementerat de här kostnadsbesparingarna. My question is, do you think there is more to do here, and can you anticipate a little bit, how much more do you think there is to do at the cost of time? Or do you think it takes more market from here to raise the margins?

Yes, Jonny, I think and think like this. There are further measures to be taken, and we are working with the issue actively as soon as possible, yes. But in the order of magnitude that we have seen so far, We have achieved that result, so it will not be in that order. But there are some additional... Yes, I understand.

Thank you. One last question, regarding the Tim Arvod prices. You mentioned that they are up in the year-over-year quarter. But at the same time, I assume that salaries will rise as well. So my question is how do you see this balance moving forward? Do you think that you can match the magnitude of the increase in prices at the gas stations? Or how do you think we should look at it?

Yes, but it is our assessment that this is a balance act that we will be able to handle relatively well. And we managed to increase our hourly rates overall. We also kept the degree of debiting during the first quarter at the same level as the first quarter last year. So we are working all the time Next question is from Stefan Knutsson from ABG.

Good morning Andreas and Malin. I have a few questions. First of all, I think we have seen from quite a few companies that there is a certain insecurity that has spread due to the stock market chaos that the US has started. Have you seen any direct impact on your customers or is it more that you see that you are waiting a little with investment decisions here?

Hi Stefan, thank you for the question. It is the case that we do not have any direct impact of the Tull War and the concerns that exist on the market related to international trade disturbances. Rather, as you point out here at the end of your question, it is more of a generally more and in some ways a gloomy sentiment that we feel. It can be a delaying investment decision or something that you have decided to move on with, but where the customer may choose to wait against the background of the environment. So it's rather the latter that we see and of course need to handle.

Perfect. Then I was also going to follow up a little bit on building. I'm a little surprised about the relative weakness. When you look at market reports here, you expect that the market will stabilize in Sweden from lower levels. But how do you see your building exposure and where the market is there?

Vi behöver bli bättre på att fånga möjligheter som finns i den delen av marknaden som faktiskt har en investeringsvilja och förmåga att växa och utvecklas. De åtgärder som vi sätter in har fullt fokus på det. Vi är verkligen på bollen här och vi tar åtgärder. Under kvartalet har vi sett att Just those parts of the market where there is more of an investment will, there we are also well positioned, but we need to move the positions further. So we really work with that.

Great, and then maybe I missed, but how big was the credit loss you took in the building environment?

2.5 million in short.

Great, thank you. That's all for me. Thank you.

There are no more questions at the moment, so I'll hand over the floor to the speakers for any written questions or closing comments.

I see that there are no more questions. I would like to conclude by saying that despite the market situation and that it continues to be challenging and that the macroeconomic uncertainty has increased in the quarter, I see a strong potential for our business in the future and have great confidence in the difference we can make with the help of our emerging engineers, architects and experts. In the short term, we are facing challenges, but as I said, Stortill tror till våra förutsättningar för lönsam tillväxt över tid här. PE har en bred och djup expertis inom byggnation, arkitektur, design, projekt och stadsutveckling där innovation och hållbarhet är centrala parametrar. Tack alla ni som har deltagit och lyssnat in och tack för ert intresse. Ha en fortsatt trevlig och fin dag.