Röko AB (publ)

Good morning and welcome. To summarize LOEKO in 2025, we are not satisfied with the profit growth in the year, in particular due to the slower second half. 2025 was a challenging year with political uncertainty impacting operating companies, currency markets and of course M&A. Organically the main issues have been company specific and part some companies. In the UK, an introduced tax increase on pickup trucks have had a negative impact on the demand for 4x4 products and the US trade tariffs, not the least on goods manufactured in China, have impacted demand negatively for some of our companies and in particular Danfarm. Both of these companies have had a negative profit development in the year. On the positive side, we can see that many of our companies have worked well with improving or protecting their margins and three companies stand out with strong improvements in the year. Renovotech, Rocket Medical and Brownell, all of them are based in the UK. Total EBITDA growth for the year was 9%, mainly driven by acquisitions and with 4% organic EBITDA growth. On acquisitions, there is a mixed picture. We still see plenty of opportunities, more quality companies than we have done in recent years. I'm happy that we have completed our first acquisition in Italy in December. However, we would have liked to achieve higher organic and higher acquired growth for the year. Going forward, we continue to see strong inflow of opportunities across markets. We remain optimistic in our efforts to complete attractive acquisitions. In the year, we acquired three companies with an aggregate 465 million Swedish of net sales, which represent 8% growth through acquisitions if they would have been consolidated 1st of January. The companies have above average EBITDA margin for the group, evidencing their attractive operating models and strong market positions. Leverage continued to decrease, decreased with 0.2%. to two times EBITDA. It's important to note here that in the 12 months period since the end of 2024, we have invested 946 million Swedish in acquisitions. If we continue to page three, start to look at the quarter, net sales was flat, but with significant exchange rate headwinds. Organic net sales was flat. EBITDA grew 5% with improved margins and also coming from a pretty strong fourth quarter in 2024. The slower EBITDA growth can really be attributed to exchange rate differences and some political challenges that have impacted some companies, as mentioned before. Operating cash flow grew ahead of EBITDA, evidencing margin improvement and focus on working capital across companies. As mentioned, we acquired one company in the quarter and similar to in Q4 last year when we entered France, this was our first acquisition in Italy. It's not a requirement to buy companies in new markets, but when we find niche companies with good margins and strong market positions, who also happen to be in new geographies, this is icing on the cake. For the full year, EBITDA increased 9% with sales growth of 4%. The higher growth in EBITDA relates to margin improvement and recent acquisitions being margin accretive. As seen, the margin improvement of approximately one percentage point was driven by higher margin acquisitions. So this was the main driver. And that's then acquisitions completed both during 2024 and 2025. The 2024 ones having full year impact first in 2025. And a beta margin improvement in the companies on a like for like basis. Margin was partly offset due to negative mix effect as well as some increased HQ costs largely following the IPO. Operating cash flow decreased versus last year on a full year basis. But if we exclude the costs relating to the IPO, cash flow grew with 2%. Since we have the lion's share of our business outside of Sweden, I want to mention currency. The Swedish Krona has appreciated quite significantly during 2025 and have actually continued to do so in the beginning of 2026. We don't have a view as to where the Krona will go, but we can recognize that the current development is negative for us on a reported basis. If the current foreign exchange rates will last for the remaining part of 2026 and all else being equal, we will continue to have negative exchange rate differences. in line with what they were in Q4 for the beginning and then tapering off towards the end of the year. If we then continue to page four, we can see the highlights of the group's financial performance over a longer period of time. We start this period in 2022, as that was the last full year when we still had equity commitments from our original investors. Similarly to 2024, we had organic sales growth of 2% in local currency, EBITDA margin improvement of 1 percentage point to now reaching 21%, and we reduced the leverage with 0.1 turns to 2 times EBITDA. Over the long term, we have achieved continuous margin improvement, return on capital employed has improved year over year, and we have reduced our leverage. The reduced leverage is not only positive, I should say, as it means that we could have had a higher pace on acquisitions. We're not stressed to be less disciplined in acquisitions. It's important to note, but we are a little bit stressed to work harder to find good companies to acquire. Turning to page five, we go through cash flow and return rates. Cash flow declined 2% in the year as mentioned before. Cash conversion was 75%. If we exclude the transaction costs relating to the IPO, cash flow increased 2% and cash conversion was 78%. Last year, we had a high release of working capital, which has not really been the same in 2025. And on top of that, our pay tax has increased slightly. We monitor the development of inventory and trade receivables closely and are always working with our local management teams to improve cash flows. Return on capital employed improved, as mentioned, from 14.4% last year to 14.8%. And while not mentioned on this slide, but mentioned before, this was the fourth consecutive year with increased return on capital employed for Röko, up more than two percentage points since 2022. However, it still remains relatively low compared with peers as we are a younger company. And the acquisition of ITV in Italy was completed towards the end of the year. The timing effect of such an acquisition on return on capital employees is adverse. Return on capital employed excluding intangibles from acquisitions was 186% evidenced in our asset life group of companies. Moving on to page six, this is a little bit of a summary on acquisitions that we have done. So we continue to grow through acquisitions. Since we started, we have completed since we started in 2019, I should say, we have completed more than 30 acquisitions at an average EBITDA multiple below eight times. EBITDA growth was 17% in 2024, driven by strong organic EBITDA growth of 9% with acquired growth of 8%. In 2025, the companies achieved an organic EBITDA growth of 4% and acquisitions contributed with 10% growth. However, we had negative exchange rate differences in 2025, as mentioned, of 4% on EBITDA. With that, I will hand the conference back to Etu who will moderate the Q&A session if there are any questions. I just want to say at the last interim report we had some issues with the chat and just in case we experienced the same today, I would urge you to ask your questions verbally. Thank you.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Jakob Marken from Danske Bank. Please go ahead.

Hello, good morning and thank you for taking my question. So I'll start on the margin in the different segments. So you talked about it briefly, but I mean, could you talk a bit more about the Q4 and how we should think about that going into 2026? of course, a very good profit development in B2B and quite weak one in the B2C segment. And of course, as you said, you know, you had acquired companies with better margins. So I guess, you know, if you can