Systemair AB (publ)

Good morning to everyone. Thank you very much for calling in to this presentation. As usual, you will find the presentation on our investor relations webpage. And we are here to guide you through the fourth quarter and the last quarter of our financial year. And by that, I hand over to Roland to start off with the presentation.

Thank you very much, Anders. And good morning, everyone calling in. So our quarter four report, just directly jumping into our slide number two, just to give you a short agenda. So I shortly just present system air in short, move over then to the fourth quarter quick summary, and we'll then hand over to Anders to go through the financials of the quarter. I will then come back and talk about the short strategy update and close with the fourth quarter order highlights before we start the Q&A. So let me start directly to go into Systemarin short. Systemarin brief. So we are operating based on our core values of simplicity and reliability. We manufacture market energy efficient, high quality ventilation products. With our customers in focus, our emphasis is always on delivery reliability, availability, sustainability, and of course, quality. Our company was established here in Finskatteberg in 1974 by our chairman and founder, Mr. Jelle Lengström. In our last fiscal year, we achieved a total annual turnover of around 1.1 billion euros. Systemare has been listed on the Nasdaq Nordic Stock Exchange Market since October 2007. And today we proudly operate our own sales companies in 32 countries together with 26 factories in 18 countries. With about 6,600 employees, Systemair, we are present and sell to more than 135 countries all around the world. And by that, I go to the next slide, slide number four, and looking into our markets. The markets of Systemair, just a short breakdown here of our presence all around the world. As you see, starting from the left, the Nordic region is today about 17% of our total turnover, which is a slight decrease from 18%, same period the year before. Western Europe is 44%, down from 46% of our volume, while Eastern Europe represents 12% of our total today. North America is continuing on a growth path and has grown to be 12% of our sales from previous level of 11. Then other markets, which covers Africa, Turkey, Middle East and Southeast Asia, has now expanded to be 15% from earlier 13%, same quarter previous year. Then, going to the next slide, slide number five. Just to give you some highlights of our fourth quarter. The sales in the fourth quarter was in line with our previous year. We see this as a sign of strength, given that we're still dealing with relatively tough comparisons, especially in the European, at present, uncertain market conditions. Some updates on future-oriented development in the quarter. We concluded, for example, the acquisition of the company PEM in Malaysia. TAM is the producer of air units that will contribute to our product offering in Southeast Asia. We also continued our investments in Lithuania and in Germany with building expansions for extended capacity at our existing facilities. At the same time, we made necessary cost reductions when needed, still with our focus being absolutely in our strategic priorities. Systemair is, of course, always proud to also make some new important product launches, In this quarter, we launched our new Genox unit platform with side-by-side configuration. Now also available with the updated integrated full reversible heat pump configuration and the next generation of our access control system. The Managa relocation continued and the move of the Managa production from Germany to Slovenia will now be finalized in our first quarter. We consider this a real milestone in our profit improvement program. Finally, I want to take the opportunity to also highlight the 2024 is our 50th celebration year as the company was founded in 1974. Now I hand over to Anders Ulf for financial update on quarter four. Go ahead, Anders.

Thank you, Roland. To start off then with net sales, that amounted to 3,069 million compared to 3,129 million last year. This is a decline in sales of minus 1.9%. In the quarter, we were again reporting a smaller organic growth of 1.0%. And we can currently see that the previous negative trend in the declining organic growth is starting to flatten out. Then we go for the next slide. To give a bit more flavor on the net sales and the growth analyze, we saw organic growth in North America, Middle East, Asia and Africa. Acquisitions and divestments contributed negatively on sales, mainly by the divested AC segment during Q4 last year. Total effect of M&A was negative by 1.1%. In Q4 last year, we had the AC business included for the month of February in the Q4. And then finally, currency effects also negative by 1.8% coming from the strengthened Swedish krona. during the quarter where the biggest contribution comes from the EURC conversion. Then we go for the next slide. Slide number eight. We go for the geographic breakdown then, and I will focus here on the organic growth rates for each region, starting off with the Nordic stand where we saw an organic sales decline of minus 1.4%. All markets in that region, except for Sweden, had a positive development in the quarter. Our largest market in the region is Norway, and that market is still showing quite robust growth, despite the exposure towards the residential sector. In Western Europe, we saw an organic sales decline of 9.4%. But then you have to remember that last year's organic growth was impressing with 15.4%. Within the region, we can see both positive and negative signs. We had a positive development in Spain, Netherlands, and Greece, but continued negative development, unfortunately, in Germany. In Eastern Europe, the organic growth was minus 0.9%. Positive development in Estonia, Croatia, Slovenia, for example, while markets were more dull in Czech Republic, Poland, and Slovenia. And then moving over to the two remaining regions that both show positive organic growth in the quarter. In North America, the organic growth rate was 2.9%, which is more or less in the same region as previous quarter. Both the US and Canadian market grew in the quarter. And in Middle East, Asia, Australia and Africa, we had a very good growth of 45.3% organically. You have to remember that in organic growth, we also include both volume and price increases. And due to the hyperinflation in Turkey, there's a high rate of price increases in Turkish lira. If you would exclude Turkey, the organic growth in that region would be 19.7%, driven by the markets in Morocco, South Africa, Middle East, and India. All in all, the organic growth for the group then in total amounted to plus 1.0%. We can go to the next slide. And then we look at the adjusted operating profit in Q4. Start off with the gross margin then in the quarter was 35.1% compared to 34.2% in previous year. And the increase is affected by change in product mix, but also from the excluded air conditioning business that was divested last year. Our adjusted operating profit margin amounted to 6.8% compared to 8.9% in the previous year. The adjusted operating profit is affected by higher overheads than last year. There are several reasons to that, but last year we were running very high volumes while being short on personnel. That was hired later on during the year. This year, we have also higher selling expenses due to trade fairs, etc. On top of this, there is also inflation in the overheads, especially prices on, for example, IT-related services have been increasing rapidly. Selling and admin expenses increased by 57.8 million in comparable units. And we are, of course, then constantly looking into how to adjust our expenses in the markets where it's needed. We go for the next slide and then we come into the adjusted profit of the tax amounted 267 million compared to 164 last year. We had negative effects from net financials of minus 2.9 million compared to 32.7 last year. Currency effects and loans on bank balances amounted to plus 15.3 million and interest expenses amounted to 22.9 million in the quarter. And next slide. Slide number 11. We'll have a look at the cash flow then. Our cash flow for the quarter was good. even though profits were lower. Our working capital decreased the cash flow by 26.6 million, mainly due to increased trade receivables. But last year, the working capital increased by 193.3 million. So in that context, this year's figure is really good. This leads to a free cash flow of 76 million. The net debt is significantly lower than last year and amounts to 1,070 million compared to 1,523 one year ago. Our adjusted leverage amounts to 0.69 compared to 1.0 last year. And by that, we have plenty of headroom for further investments and M&A activities. And by that, back to you, Roland.