Railcare Group AB (publ)

Hi! This morning we released our report for the third quarter. This is a report that we are very pleased with. We make our best quarter ever, both in terms of turnover and results. Before we get into the report, I thought I'd start by telling you a little bit about our business. We operate Velka-koncernen in three different business areas. We do entrepreneurship, where we carry out track maintenance with self-developed machines and dewatering measures. The transport business carries out goods, entrepreneurship and special transport with our own locomotives and drivers. Through technology, development and transformation of both locomotives and machines occurs, as well as that we carry out service and maintenance. If we look at our market on the railways, it looks 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 at the same time by 50% until 2040. This means that maintenance needs to be more efficient in order to minimize the impact on the railways' traffic. The membership in NATO also increased the requirements for the railway's robustness and reliability. The railway is in focus and therefore has simple and natural explanations. Looking at our highlights for the third quarter, Trafikverket has released a proposal for a new national plan. The main focus of the plan is employment, competitive industry and strong total defense. The railway is prioritized in the plan and about 80% of the plan's listed investments are to develop mainly existing railways. Social economic benefit has been a guiding principle for the plans. In practice, it means that the methods used for the various maintenance works must be as effective as possible and contribute to long-term robustness and reliability. This sets the requirements for the processing process. The cheapest price is far from always the best long-term alternative. The focus areas in the new plan are a good opportunity for us at Railcare, since we have developed effective machines and methods for a long time. If we then go into the report itself, we can summarize the third quarter with, as I mentioned earlier, a record turnover of 196 million, compared to 169 million years ago. The movement result went up to 30 million compared to last year, when we had 20 million. This corresponds to a movement margin that also increased to 15.4%. This is our best quarter ever in terms of both net turnover and results. And it is mainly the transport business that has developed very positively thanks to the new preparation projects, but also through the seasonally high volumes of entrepreneurial transports. This gives a good boost to the margins throughout the company, as the high investment gives us the opportunity to make use of our resources in an efficient way. We have also had a high availability on our loks, thanks to a deepened collaboration between transport and technology. This is a good example of how we develop collaboration and working methods within the company and how it contributes to a stronger Railcare. If we look at our financial development, we can see that the turnover is increasing a bit. We should remember that the increase from the preparatory plow is no longer full, because this is four quarters backwards. We will see a continued increase thanks to this mission. If we then look at the moving results, we also see that it is on its way up and where we increase the result, seen both in the previous quarter and at the beginning of the year, which was a little dubious. The margins also increase and in the long term we have a goal of achieving 1 billion in revenue and 13 percent, and that is still the focus that we have in the future. If we look at the development of our respective segments and start with entrepreneurship, the net turnover increased within the entrepreneurship business in the third quarter to 72.6 million, which is 6 million more than the previous year when we had 66 million in turnover. This is an increase of 9 percent compared to the previous year. Both entrepreneurs and rental businesses have had a high inflation during the quarter, which contributes to an increasing net turnover. The turnover during the third quarter decreased compared to the same period the previous year and went up by 4 million compared to almost 6 million the year before. But then the result was weighed this year by a decline of 1.5 million, considering the footprint that we had earlier on Rail Test Nordic, which was transferred to competition during the third quarter. The operation in Great Britain was affected during the quarter by a smaller fire in one of the vacuum machines. This affected ongoing operations and caused a negative effect on both turnover and turnover. If this fire had not occurred, the English operation would have contributed to a positive turnover during the third quarter. If we look at the transport business, the net turnover has increased by 23.2 percent during the third quarter of 2025 and in the previous quarter it went up to 113 million. The increased net turnover for the third quarter is largely explained by a high volume of entrepreneurial transports as well as the new procurement contracts that have been introduced during the year. Entrepreneurial transports, which are dependent on the number of tracks, see now that they will take off here at the beginning of the fourth quarter, as more of these partners are carried out during the summer-summer season. The traffic stress rate increased compared to the previous quarter and rose to 22.8 million compared to 15 million the year before. And thanks to the good availability of products, along with a high rate of investment, it means that the turnover margin for the quarter rose to a total of 20 percent compared to 16 percent the year before. Finally, technology. The net turnover rose during the third quarter to 26 million compared to 29.5 percent the year before. And this is a reduction of 10 percent compared to that quarter. On the other hand, the turnover was higher than it was last year and went up to 3.3 million, compared to a minus-result of 1 million. Lågkvarken in Långsjö has continued to increase, which lifts the entire technology segment, and a higher degree of improvement in the workshops, combined with the earlier increase in personnel, now contributes to increased efficiency and margin. If we then look forward, the focus is now in the technology segment, the nearest time to find new external tasks, both in the workshop in Skelleftehamn, but also in Långstelle. In the long term, we strive to increase our offer, regardless of whether it is new buildings, life-time extension or running maintenance. The sales work has also been intensified in order to increase the proportion of external tasks in, above all, Skellefteham. The transport business continues to grow. And here we want to be clear with, which we have also been earlier, that if we are to achieve our goals of 1 billion, we need to get new tasks in the transport business in order to achieve that goal. And it is basically our high delivery security that makes us have good hopes of being able to carry out new tasks. In England, as you know, we have had challenges for quite a long time. There is currently a discussion with Netbook Rail to secure a basic volume in England for the coming year. And this will be decisive for how this business will look in the future. And we expect these discussions to be in place before the year changes. When we talk about our way of working within the corporation, we already see the effects of our business areas working closer to each other. During this third quarter, as I mentioned earlier, we see this above all in our high availability of our locomotives. We have had a very good collaboration between the technology segment and, in particular, the locomotive industry in Longsele and with the transport business. This has been a basic prerequisite for the high volume of entrepreneurial transports that we have carried out during the third quarter. I am very pleased that these effects have already begun to take shape. And with that, I would like to thank you for your interest in this presentation. And if you want to then read the entire presentation or the report in its entirety, you can go to our website www.railcare.se. Thank you very much.