Prevas AB

So looking into the second quarter of 2026 for Prevas. Prevas delivered a stable revenue performance in a quite cautious market. We delivered 405.1 million SEK versus last year, 408.8. That equals a negative growth of 0.9%. The EBITDA was clearly below our ambitions. The EBITDA adjusted for restructuring was 23.1 million SEK, 5.7%. During this quarter, we have made several initiatives in the group to reach a more agile and efficient organization for future profitable growth. And we have taken restructuring costs of a total of 8 million SEK during the quarter. We also during this quarter had a negative EBITDA in Finland that affected the EBITDA, of course. And that was due to the restructuring costs we have taken for a change program, which I will come back to later on in the presentation. We had postponed projects in Finland and also low utilization. Excluding Finland, Prevas as a group delivered improved EBITDA versus last year. We delivered, excluding Finland, 6.6% in EBITDA for the second quarter. The reported EBITDA was 3.7% equals to 15.1 million SEK. The operating cash flow continued to be strong. We've delivered 42 million SEK in operative cash flow for the quarter compared to last year of 49.6. EPS 0.5 SEK versus last year 0.73. But all in all, if we look into the second quarter, it was clearly below our ambitions. And to be honest, I'm not satisfied with what we are delivering. The quarter was mainly impacted by Finland and the restructuring cost of 8 million SEK. We have taken necessary actions throughout the group to increase efficiency and to reach improved profitability and growth for the future. Looking into the business in Prevas as a total, we can see that the underlying business continues to improve. We have a continuous trend with increased utilization in the group, in major parts of the group, I would say. And that is driven by operational improvements that we have been doing. One example is that we are doing the first quarter and also affecting the second quarter. We had three business units in Malmö Lund area that we merged into two focus units. We also closed an unprofitable unit in Malmö. We have worked with adaptions to demand in several units in order to adapt the workforce towards actual demands in order to increase the efficiency of Prevas as such. But that is one part, the operational improvements. Another important part is that we are growing as well. We are growing in several areas in Prevas, like in AI-based vision system, a clear niche where we have a strong position. The core of Prevas embedded systems software development is growing in Prevas in total. We are growing in defense, we are growing in enterprise asset management systems, we're growing in smart production. So we have many areas in Prevas that actually are growing. So if you combine the operational improvements and action we are taking in that area, combine that with the growth we see, That drives increased utilization that we also see in major parts in Prevas for the second quarter. Looking into Denmark, as it previously informed, we had a slowdown in demand in the life science sector that affected our Danish unit. So we have reduced the number of employees in Denmark taking those kinds of actions. We have also focused on sales and growth, especially in cybersecurity area and industrial Linux in Denmark. What we see now is that the actions and the focus we have taken gives effect. We see a trend that is positive in Denmark, We had a positive EBITDA in June, which proves once again that we are going in the right direction in Denmark. Another positive thing is that we see a slow recovery in the life science demand, which affects Denmark in a positive way. But all in all, the underlying business in Prevas is improving, and we see increased EBITDA for the second quarter in for the group excluding Finland. And looking into Finland and my team, we already look forward to the autumn to show and to prove what we really can do in Prevas. So with this, we move on to the Q&A session and I hope and look forward to interesting questions this time as we normally have. Thank you very much.

Thank you, Magnus, for this presentation. We go further to the questions from the audience. What does management turnover in Finland look like? Is the challenging performance related to a significant number of senior managers having left the company?

No, actually it is like this. The turnover in our management team in Finland is very, very low. The core team that came in through the acquisition remains, and they are also shareholders. We have a very stable management team in Finland. And the challenge we have in Finland is related to the market development as such, not to what can happen in the consultancy industry that you acquire a company and that the team that managed the company disappears. And that is not the case in Finland. We have a strong management team, very committed.

You mentioned that conditions are improving in the life science sector. What share of your revenue comes from life science and how do you expect that to develop going forward?

Thank you. Good question. The share of revenue to life science was 13% in the second quarter. So it is an important segment for us at Prevas. Regarding the future development, of course, it's quite hard for me to judge. But as I mentioned in the presentation, we see positive signs. We see that our customers take decisions for new R&D related projects, which is positive for Prevas. And we also see that funding for startups is coming back again in this area. So all in all, we see positive signals, but as I said, it's difficult to judge the future in that sense.

Why did the telecom segment grew by 38% during the quarter?

Yeah, it's not a big segment for Prevas, so the percentage changes are quite big. The reason for that was that we had a large order that we delivered on for automation to a data center project in Sweden.

Thank you. You mentioned that you plan to recruit. Which areas or competencies are you recruiting for?

We are actually recruiting in many parts of Prevas right now, and not all of the competencies we have, but many of the different competencies we have in Prevas. Specifically, we see demands in cybersecurity, in embedded systems. We have a very strong position in AI vision systems. We look for engineers with those kinds of experience as well. Automation, electrical and power engineering and design. So in quite many areas, we see needs to recruit in Prevas right now.

Okay, thank you. NMAC had an EBIT margin of minus 16%. What happened with the turnaround in Finland? Could this become even worse?

So take the question again.

NMAC had EBIT margin of minus 16%. What happened with the turnaround in Finland? Could this become even worse?

I put it like this. The turnaround in Finland, as I said in the presentation, in 2024 when we came in, there was one kind of market situation. And then we had a very big change in the dynamics in Finland, which has affected our Finnish operation in that sense. and after that we have been working quite hard to turn around the company and we have also for six consecutive quarters delivered positive EBITDA but what we have seen in Finland that we have not reached the profitability levels that we want to have in Prevas so we decided to make a change program in Prevas in order to set the structure for long-term profitability in Finland and looking into the second half of the year we come into the second half with a new and lean and efficient organization and a very high order stock as well so in that sense it's a very good foundation to come back to profitability ASAP in Finland. So I don't see this as a free fall. I see this as a necessary investment we do in order to put Finland back on track for long term.

Thank you. One other question about Finland. How quickly do you expect the new changes to have an effect and the 55 million in new orders signed in Finland in June? What is the typical lead time from signed order to recognized revenue?

The typical lead time for orders like that can be quite short, actually. In these cases, we will see effect directly after the vacation period. So we will come back to a situation in Finland where we have work to do. So the team will start up with new projects. So that will affect the situation immediately after the vacation period. There were two questions. What was the first question?

The first question was how quickly do you expect the new changes to have effect in Finland?

The changes will start to effect immediately after vacation period and then of course gradually during the second half of the year. But I expect that we will have a good progress rapidly in Finland after vacation.

Thank you. Can you give more detail on the lack of revenue growth? Defense has been strong and Finland is relatively small percentage of sales. So where has the other weaknesses been?

It's actually a consequence that we have made decisions to optimize our organization. So we have reduced with, for example, in the southern parts of Sweden, where we have closed one unprofitable unit and merged three units into two units. And as an effect of that, we also discontinued some business with very low or net, not negative margins, but very low margins. So that affects the revenue growth for this second quarter as well.

Thank you. And one last question before summer holiday, Magnus. Have all restructuring costs now been recognized or should we expect additional restructuring costs going forward?

we will not see the same magnitude of restructuring costs moving forward into the second half of 2026. Although in Prevas, this is an integrated part of what we do, so we will always work with efficiency in our organization, but I don't foresee restructuring costs for the second half of the year at the same magnitude as we had in the first half of the year. So in that sense, we have taken the absolute majority in that sense of the restructuring costs.

Thank you, Magnus. And please, have you any final remarks for the audience for this quarter result?

The final part, I think, from my point of view, what we have done is that we have now worked for the first half of the year with optimizing three of us. We have set up a more lean organization, an efficient organization, combining that also with that we see that the market activity starts to move. And especially in Finland, we come in the second half with a strong order stock, which, of course, will influence our ability to make good progress in the second half of the year. And one final