Railcare Group AB (publ)

This morning we released our report for the first quarter. It is a quarter that is highly influenced by the fact that we are now taking steps to achieve our goals until 2027 and that we still have it very heavy in the business in Great Britain. I'm going to start by giving a short picture of our business and how the market looks. Railcar-concern is mainly operated in three different business areas. We have entrepreneurship, where we carry out rail maintenance with self-developed machines as well as dewatering equipment. Transportation operations, where we carry out goods, entrepreneurship and special transport with our own locomotives and drivers. And through technology, the development and transformation of both locomotives and machines as well as service and maintenance takes place. When it comes to our market, the market on the railways is very interesting. The debt on Swedish railways is very large and the need for a well-functioning and sustainable railway infrastructure is crucial for Swedish industry competitiveness. Transport on the railways is expected to increase by 50% by 2040. This means that maintenance needs to be made more efficient in order to minimize the impact on the railways traffic. The partnership with NATO also places increased demands on the railway's robustness and reliability. The railway is in focus and therefore simple and natural explanations. During the quarter, we have submitted a contract to the Trafikverket for snow removal. This contract applies for four years with an option of an additional one plus one year. The value goes up annually to 59 million. which means a total value of SEK 355 million for the contract for all years, including the option year. We are of course happy to be contributing to this important contract, not only because it contributes to economic stability for Reykjavik, but also for the important task we have to make the railway more accessible even in challenging weather conditions. During the quarter, we have also received an order from Norske Baneservice on a new maintenance machine, a so-called Railvac, worth 30 million SEK. The diesel-powered machine will be built in the workshop in Skelleftehamn in 2025 and in early 2026. The maintenance needs on the railways are also large in Norway and we are of course proud that Banu Service chooses to invest in machines from just us. If we look at the first quarter, we can see that net revenues decreased by 4.9% to SEK 123 million compared to approximately SEK 129 million a year ago. The movement result was 4.4 compared to 15 in the first quarter of last year. The first quarter is mainly affected by the planned expansion of the organization for future projects, as well as the fact that operations in the UK continue to have problems with low volumes. This means that the movement margin is lower than what we normally have. But as previously communicated, this expansion and adjustment of our organization is a necessary step for us and our opportunities for continued growth. We expect that the margin will gradually improve in the future and that there will be good opportunities to achieve our financial goals for 2027. As I said, our goal is to achieve a turnover of 1 billion SEK with a turnover margin of 13% and it is always stuck. As we previously communicated, we are now taking the necessary steps to achieve these goals. In practice, this means that we build an organization and take costs for future projects. One example is the preparation project, but we also see a great potential in our other businesses. If we look at our segments, we have since the beginning of 2025 made a change in the segment reporting. Entrepreneurship Sweden and Entrepreneurship abroad will be reported together within the segment Entrepreneurship. Transport Scandinavia will be reported in the segment Transport. Lokverkstan i Långsele, which has previously been reported to the transport segment, comes from M25 to be reported within the segment technology, which we previously referred to as machine technology. And to start with entrepreneurship, the net turnover during the first quarter has risen to 42.5 million, which is equivalent to a decrease of 16.7% compared to the previous year. The result decreased compared to the previous year is also built up to minus 5 million compared to plus 3 million the year before. The decrease in turnover during the first quarter is largely due to decreased volumes of entrepreneurial activities in the United Kingdom. The low volume also means that we have an overcapacity of resources in the segment that weighs the result. The business in Great Britain is still going heavy and we are now in a situation where we are looking at alternative opportunities for the machines to be able to increase the use rate, either in Great Britain or on other markets. In Sweden, however, the placement has been good, but the type of assignment has caused both the turnover and the margin to decrease somewhat. The volume of work in the lining business has been slightly higher than in the previous year. If we then go over to the transport segment, the net turnover has increased by 11.5% in the first quarter compared to the previous year and went up to 77.5 million. The turnover was somewhat lower than the previous quarter and rose to approximately 9 million, compared to approximately 10 million the year before. The increase in turnover is due to the preparation assignments that were started at the change of year, as well as the increased volume of transport assignments. The turnover is still due to the increased cost due to the fact that the company has now adapted for further new assignments and to enable continued growth in the coming years. Finally, in terms of technology, the net turnover has decreased during the first quarter compared to the previous year and went up to 29 million. The moving results were also slightly lower than the previous year and went up to minus one million. The lower turnover is mainly due to the fact that the internal value of local machines has decreased. Looking forward, we can see that our increased focus on external sales of machines has, as I said, given results to the Norwegian Railway Service in mid-February this year on a new railway to a value of SEK 30 million. And we have a continued focus on machine sales, partly to be able to sell our self-developed vacuum machines, but also the value that we have built up in the form of experience and competence related to battery technology in general. Railcare, we are now aiming to achieve our goals for 2027, which means that the planned expansion of the organization for future missions is in full swing. This applies not only within the transport segment, but also within the entrepreneurship and technology segment, where we see an increased demand. Since the organization is built to enable this growth, the margin is lower than normal, but we expect that it will gradually improve in the future. Trots oro i omvärlden så ser vi ingen nämnvärd negativ effekt på Railcare idag utan säkerhetsläget har snarare inneburit ökat fokus på vikten av en robust och tillförlitlig järnväg. Satsningarna på järnvägen ökar och vi är väl positionerade för att ta tillvara på dessa nya affärsmöjligheter under de kommande åren. And with this, I would like to thank you for your interest in this presentation. If you want to read the report in its entirety, you can find it on our website, railcare.se. Thank you very much.