Railcare Group AB (publ)

Hi! This morning we released our report for the second quarter at Railcare. A good report that means that we have a very high turnover and improved turnover margin. I was going to start a little short by telling you about our business. At Railcare, we operate the business mainly in three different business areas. We have partly entrepreneurship, where we carry out maintenance with self-developed machines, as well as that we in our mining business also work with dewatering measures. The transport business carries out goods and entrepreneurship and special transport with its own locomotives and drivers. In technology, development and transformation of both locomotives and machines occurs, as well as that we carry out a whole lot of service maintenance for external customers, but also our own machines. If we then look at the market, it looks very interesting right now on the railway. The maintenance debt has never been greater and the need for a well-functioning, sustainable railway infrastructure is crucial for Swedish industry's competitiveness. Transport on the railway is expected at the same time to increase by 50 percent by 2040. This means that maintenance needs to be more efficient in order to minimize the impact on the traffic on the railway. The membership to NATO also placed increased demands on the railway's robustness and reliability. And that the railway is in focus, it has simple and natural explanations. If we then look at some highlights from the second quarter, we have under the second quarter established two more calculations in readiness within the readiness mission that we have for the Traffic Agency. It is in great anxiety that you can now see our brand new FF Chantelok, which is ready to be pushed out. At the end of October, the project in Borlänge was established and then in January 2026 the project in Hallsberg was started. And we have, in addition to these places, also rowing paddocks in Närsjö, Älmhults, Långsele, Vännäs, Boden and Kiruna. And this now means that from the beginning of next year we will have a total of 10 paddocks that we operate in Railcare and a total of 14 that are on the market. If we then look at the report for the second quarter, the turnover landed at 178 million, compared to last year's record quarter of 180 million. And we deliver a very strong second quarter in total, as I was talking about initially, with this turnover being very high historically, and it is actually our highest turnover result ever in these 18 million for a second quarter. And then you should of course remember that we compared with a very strong quarter last year and that we, in parallel with this, develop organizations to enable future projects. The turnover in the entrepreneurial business, a chance that waited if we had not had any larger entrepreneurial projects as we had last year. But the increase in turnover in both transport and the technology segment is largely due to the reduction in the entrepreneurial business. Vi har en bra position inom alla våra verksamhetsområden. Det stora underhållsbehovet på järnvägen ger stora möjligheter för oss de kommande åren i och med att volymen av underhållsgärder som har planerats är väldigt hög. If we then look at the financial development for rolling 12, we see that we are on a level with a turnover that is a bit over 600 million. Here we should then remember that we have initiated these new preparedness missions first this year, so therefore there will be a certain delay when we look a whole year back. The same applies to our operational movement results, where we see that now these two quarters Ligger på en nivå på strax under 60 miljoner för för de senaste rullande tal. Som jag nämnde inledningsvis så har marginalen ökat något under det här kvartalet och vi hoppas, och vilket vi också har sagt tidigare, att den här marginalen ska kunna fortsätta öka. Vi har ju som bekant ett mål att vi 20 27 ska omsätta en miljard med en marginal på 13 procent, och det är det vi tar sikte på här och nu. If we then look at the different segments and start with entrepreneurship, then the revenue decreased to 69 million compared to 87 million a quarter a year before. This is a reduction of about 20 percent and it has a great deal to do with the fact that we had a very large project last year where we made a lot of money and hired a whole lot of entrepreneurs to be able to do the project. So it also means that we further invoiced a lot of resources to the traffic agency. If we then look at our lining business, we have a better year this far this year compared to last year, and the volumes continue to be higher than what we had during the previous year. So despite the fact that we reduce the turnover so much, we still have a result in terms of the previous year, so the placement of our own work is still very good. We also have in the business area, of course, the business in Great Britain, and there the volumes have not risen, even if we have handled the results better in Q2 than in Q1. But the fixed costs are still heavy. As I said, we are working very intensively to get the arms around England and see how we will develop that business in the future, whether we will remain or how we can somehow drive it further with profitability. If we then look at the transport business, the turnover increased by over 13 percent during the second quarter compared to the same period last year, and went up to 95 million. This increase in turnover is largely due to the preparation contracts that are started during the year, while we have also had an even higher volume of entrepreneurial transport this year. The good result was slightly lower than last year, 10 million compared to almost 12, and we still weigh a certain part of the costs that we now take so that the business can be developed, adapted for new projects and so that we can make it possible for growth through the transport segment. Finally, if we look at technology, the turnover increased by 33 percent in the second quarter compared to last year and rose to just under 37 million compared to 27 years ago. The turnover was also higher and fell to 2.5 million plus compared to a loss of just under a million years ago. And here we are working in Skellefteham with the the final assembly of the third sub-roll machine with electricity and battery operation, where we, through power companies, enable both operation and charging of the battery. And we plan to have the machine ready at the beginning of the fourth quarter. And in parallel with that, the work with the last years of a RailVac machine for Norwegian railway service and we hope to be able to have it approved and ready for the first half of next year. In the Långsäl geological factory, we have completed a number of ETCS installations during the second quarter and we have a lot of projects that we work with in Långsäl and the facilities are still very high. If we then look forward, the focus lies in the technology segment in the near future to finish just this MPV machine that I just mentioned, while we carry out a number of external tasks in the workshops, both in Skelleftehamn and Långsele. If we look a little further in the long term, we strive to increase our offer, regardless of whether it is new construction, lifetime extension or ongoing maintenance. And we have also intensified our sales work to increase the proportion of external tasks in Skellefteham. Now, when we have completed the construction of our own MPV machines. The transport business continues to grow and that is much thanks to our high delivery security, which is excellent in the industry and gives us good hopes to be able to maintain new transport projects in the coming years. And if we are to achieve the goals for 2027 with a billion in revenue and 13 percent, new transport contracts are necessary for us. In the business in the United Kingdom, the volumes have been low. We have been talking about this for a long time and this has been so since the pandemic broke out and when the United Kingdom also left the EU. And in the same way as the Swedish business, we have a framework agreement with Netbook Rail. Och det här om avtalet ger oss inga volymgarantier utan det reglerar ersättningen per shift. Nuvarande avtal gick ut den sista juli i år och vi har just nu pågående diskussioner med Netbook Rail om ett nytt ramavtal. Sedan diskuterar vi i tillägg till det även andra alternativa upplägg för att säkra en grundvolym i Storbritannien. Utfallet av de här diskussionerna kommer att vara avgörande för verksamhetens framtid. Even this summer, the challenges on the railway have been great. Frustrations are growing, not least from a political point of view. And then you add climate change, which means faster climate change and large amounts of waste on its part. These are factors that we will have to take into account now, both in terms of maintenance and presence, but also in the construction of new infrastructure. And that we need an efficient nuclear power plant, where both machine methods and employees collaborate, we are all agreed on. And we at Railcar have a very good reputation in the industry and are connected with new ideas and problem solving. And we do what we can to take our responsibility for contributing to a robust and reliable nuclear power plant. And with this, I would like to thank you for your interest in this presentation. And if you want to read the entire presentation, it is on our website, www.railcare.se.