Railcare Group AB (publ)

Hi! Today we have released our report for the first quarter and we are starting the year very strongly and this is a report that we are very, very pleased with. Before we go into the report itself, I thought I'd tell you a little bit about our business. At Raidcare, we mainly operate in three different areas. We have entrepreneurship, where we carry out rail maintenance with self-developed machines, as well as irrigation. In transportation, we carry out goods, entrepreneurship and special transport with our own locomotives and locomotives. In technology, we develop and transform both locomotives and machines, as well as we carry out service and maintenance. Vår marknad på järnvägen ser väldigt intressant ut. Underhållsskulden på svensk järnväg är väldigt stor och behovet av en väl fungerande och hållbar järnvägsinfrastruktur är avgörande för svensk industris konkurrenskraft. Transporterna på järnvägen förespåls samtidigt öka med 50% fram till år 2040. Det innebär att underhållet behöver effektiviseras för att minimera påverkan på trafiken på järnvägen. The membership in NATO also places increased demands on the railway's robustness and reliability. The fact that the railway is in focus therefore has simple and natural explanations. If we look at the report, as I mentioned earlier, we start the year very strongly. This is the best movement result we have ever had for the first quarter. And it is above all the entrepreneurship business that stands out during the first quarter. The new contract for snow removal has been in force since March, which is an extension of two weeks compared to the old contract. The Q4 report informed us that some of the work had to be shot in the future due to the early winter. Now, instead, spring has come early and a large part of these jobs have been able to be carried out during the first quarter. Combinations of an extended contract for snow removal and an early start on the entrepreneurial work gives a good assessment and confidence in both results and margins. The transport business delivers a stable quarter, where the new business blocks largely compensate for the lower volume of entrepreneurial transports. Last year, we had an early start on entrepreneurial transports due to the slip transports we had on Malmbanan. If we then look at the figures, we see that we are increasing The volume, our net turnover with almost 24% and we have a significantly higher result and margin. The net turnover went up to 152 million compared to the 123 million corresponding quarter last year. And the turnover increased significantly from the 4 million we had then, which was certainly a weaker quarter, up to the record level of 19.2 million for the first quarter. And if we also look at the margin, it is actually at a level with our long-term goals, and it landed at 12.6%. As is well known, the goal is to achieve 13%, so we are very close there now. It is still a big concern in our environment with war both in Ukraine and Iran. We still see no significant effect on Railcare, but we follow the development carefully and are prepared to take measures if necessary. For example, the increased oil price over time has a limited effect on us, since our customers largely support that cost. If we look at our financial development over the period of 12 months, we see that the turnover increases. And the turnover increase, this current rolling 12 compared to a year ago, we see a net turnover increase of about 70 million. And even the margin increases. And from the periods that we showed in the diagram, the margin dropped in Q1 last year, when it rose to 9 percent. We have now, in Q1 this year, reached a level of 12% for this year. If we look at our respective segments and start with the entrepreneurial business, the net turnover increased to just under 54 million, which is an increase of 27% compared to the 42.5 million we had in the previous year. The increase is explained by the extended agreement for snow removal, in combination with the fact that the entrepreneurial work has started earlier this year. Even the business in England has gone better than last year and the work on dismantling the business is ongoing. The result increased significantly compared to the same period last year and went up to 8.9 million, compared to minus 5 for the previous quarter last year. and the margin fell to 16.5%. In the transport industry, the net turnover has increased by 22% compared to the previous quarter last year, and rose to 90 million. Entrepreneurial transport has decreased comparatively with the quarter last year, when we drove sluice transports, but the flow rate has largely compensated for the decrease in volume of entrepreneurial transports. The result went up to 8.2 million compared to 9.3 a year earlier, which is basically the same level. The margin went up to 9 percent compared to 12 percent last year. If we finally look at the technology business, the net turnover has increased to 28.8 million, which is in line with the previous year. We have had some more external projects in Skellefteham, and we have also carried out tests on the railway that sold its Norwegian railway service with good results. Now there are a lot of smaller buildings left, and approval within the machine can be delivered to customers. And we continue to have a high investment in the loom industry in the longer term. And the detailed plan work for an eventual expansion is ongoing all the time. And the turnover result increased from minus one million to plus two and a half, which also strengthened the margin from minus three to over eight percent. If we look forward, we see a slightly lower volume of entrepreneurial activity this year. This is due to the fact that some of the pre-prepared work, i.e. what we do at Railcare, has moved forward for the coming year. The reason for this is that this year a lot of track changes have been planned, which are carried out by many of the major actors on the market. Track change, on the other hand, means that we will have more entrepreneurial transports within segment transport during the year. And we are currently seeing high volumes from the other half of Q2 to the middle of Q4. As is well known, there is a lot of concern and unpredictability in our environment. We don't see any major effects on Railcar today, but the development is difficult to foresee and we are prepared to take measures if necessary. With the first quarter behind us, we continue to work towards our goals. As we said earlier, we see short-term opportunities to grow in the transport business. Vi har uppslag på nya transportuppdrag med allt från korta till långa uppstartstider. Vi har goda förhoppningar att kunna erhålla nya transportuppdrag under året. Med det så vill jag tacka för intresset för den här presentationen. Vill ni ha mer information så går hela rapporten att läsa på vår hemsida www.railcare.se. Tack så mycket!