Railcare Group AB (publ)

Hi! This morning we released our report for the fourth quarter. We delivered a stable quarter where our transport business acted as a trigger. Before I go into the report itself, I thought I'd start by telling you a little bit about our business. At Railcash, we operate our business in three different business areas. We have part of the entrepreneurship business where we carry out track maintenance with self-developed machines and where we also carry out irrigation measures. In our transport business, 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 that we carry out service and maintenance. If we look at the market on the railways, it still looks very interesting. The maintenance cost on Swedish railways is very large and the need for a well-functioning and sustainable railway infrastructure is crucial for the competitive power of the Swedish industry. Transport on the railways is expected to increase by 50% at the same time until 2040. This means that the entertainment needs to be optimized to minimize the impact on the traffic on the railway. Our membership in NATO also places increased demands on the robustness and reliability of the railway and that the railway is focused on therefore simple and natural explanations. During the quarter, we have, among other things, worked to strengthen our technical offer by acquiring technology for radio control of locomotives from Traverse Teknik. By owning and controlling the technology in the entire chain, we can now offer a holistic solution to our customers, from product and installation to service and support. In connection with Lokverketen in Långsjöle, we have also acquired properties with the station building and adjacent railway tracks. With these strategic acquisitions, we are working in parallel with the implementation of a possible new construction in Långsjöle. At the same time, we see that the locomotive has good conditions to be able to be developed. With its strategic position in Sweden, in close connection to several central railway lines, the place is especially suitable for quick efforts where high accessibility is also required. This is of great importance both from an infrastructure and a defense perspective. And in the beginning of the year, even the Trafikverket also chose to take advantage of its year of option for Röjningsloke in preparation for the contract that applies to the four cities in northern Sweden, and that is Långsälje, Boden, Vännäs and Kiruna. And the value of this extension, which applies throughout the year 2027, goes up to 45 million kronor. Looking at the fourth quarter, we achieved a revenue of 170 million SEK compared to 157 million SEK the year before. The turnover was 14.9 million SEK. In total, we delivered a margin of 8.8%, which is in line with the previous year. Our transport business is still doing very well. The preparation projects that have been started during the year mean that we can now match the revenue to the costs we have for that project. In addition, the business has also carried out more entrepreneurial transports compared to the same period last year, while the fixed projects are running according to plan. In the entrepreneurial business, some of our projects have been moved due to previous and severe snowfall in the southern parts of the country. These projects will now be carried out this year instead. Then we look at the whole year, the turnover landed at almost 668 million, compared to 635 years ago. The turnover result for the whole year landed at almost 68 million, which is the same level as the previous year. This corresponds to a margin of 10.1%, which is also in line with the previous year. The board has also decided to offer a share of SEK 70 per share at the end of the year. And this is also the level with the previous year. If we look at our financial development, we see that the volumes, depending on the 12, go up. And here we are clear that we want to achieve a Our goal is to achieve 1 billion in turnover. This is a goal that will require that we maintain some transport projects so that the volumes can be achieved. As for the margin, as I mentioned, we have a margin of over 10% and we have a goal of achieving 13% by 2027. We are working intensively on that goal. If we then look at the various businesses and start with entrepreneurship, then the turnover increased to 64 million compared to 74 million years ago. And this is a reduction compared to the previous year of 13 percent. And we have had partly a low inflation in the United Kingdom, as well as that we have not had any annual revenues as we had the previous year. And then, in addition, the previous winter, as I mentioned earlier, meant that some projects have moved forward to this year. However, it is a pleasure to see that the lining business, despite the weather conditions, has carried out more drum renovations than the previous year. The turnover result fell to 1.3 million, which corresponds to a margin of 2%. In the transport industry, on the other hand, we have increased the turnover by 22 percent, up to 95 million, compared to the 77 we had the year before. The new business contracts that start during the year contribute to this, but we have also had a good degree of investment in other tasks. The movement result increased compared to the previous year and went up to 12.6 million compared to four and a half years ago. This corresponds to a margin of 13 percent, which we are very happy about. If we finally look at the technology industry, the turnover increased to 29 million, which is in line with the previous year. The same is true for the result, which fell to 1.5 million compared to 1.2 million the year before. This gives a total margin of 5.4 percent compared to just under 4 percent the year before. Looking forward, we have now decided to dismantle the operating business in Great Britain. Despite the great need for maintenance, the volumes have decreased in recent years. We have made strong cost savings to compensate for the decreasing volumes, but we have not managed to increase the volumes in the way we hoped. This also applies to the projects we work with in order to secure a basic volume in the near future. The projects that are already planned will be completed at the beginning of the work with the dismantling of the business. And in that process, we will see alternatives for the machines that are now established in Great Britain, where they are either taken home to Sweden or rented out. We still believe that our machines and our method can help to meet many of the challenges that exist within the British Railway. But no matter how we handle the machines, we are now given the opportunity to adapt and better plan the Swedish business when the volumes become more predictable. If we then look at the technical exam, we focus more on new external tasks, both in Skelleftehamn and Långsele. In the long term, we strive to increase our offer regardless of whether it is new construction, life extension or ongoing maintenance. The sales work has intensified in order to increase the number of external tasks, especially in Skellefteham. The transport business continues to grow and as we have previously communicated, we need to get new jobs in the transport business in order to achieve our goal of one billion. We are now working focused and with the help of our high delivery security, we have good expectations to be able to offer new transport projects. And with that, I want to thank you for listening to this presentation. And if you want more information and read the report, it is on our website www.railcare.se. Thank you very much.