Systemair AB (publ)

to everybody. Thank you very much for calling in to our Q1 presentation. Me and Roland are sitting here today in Skinskatteberg in the beautiful weather. We can almost promise that when we are hosting also our annual general meeting here today at 3 o'clock. Maybe next year you will be able to participate. You will find a presentation then on the investor relations web page under reports and presentation, of course. So by that, I hand over to Roland.

Thank you very much, Anders. And hello and welcome everyone to our quarter one report. Without further ado, let me just jump into the report by switching to the second page of the report that you will find on the web page with the agenda. I'll start with a short systematic in brief, followed by the first quarter summary. followed by Anders with the Q1 financials. And we have as the fourth point, we have the first quarter acquisitions and project highlights. And we will end with the Q&A. Switching to the next slide, system air and brief. As you know, we are operating based on our core values of simplicity, reliability. We manufacture and market energy efficient, high quality ventilation products. With our customer focus, our emphasis is on delivery reliability, availability, sustainability, and quality. Systemair as a company was established in Skinskatteberg here in Sweden 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. And Systemair has been listed on the Nasdaq Nordic Stock Exchange market since October 2007. And today, we proudly operate our own sales companies in 51 countries, together with 26 factories in 19 countries. With our about 6,600 employees in System Air, we are today present and sell to more than 135 countries around the world. Switching to next slide, slide number four, and looking at the highlights of the first quarter. So the organic growth of sales in quarter one was closely in line with the previous year. You see this as a sign of strength, given that we're still dealing with relatively tough like-for-like figures in an uncertain market. We did also finalize the acquisition of the HQ manufacturer FAM in Kuala Lumpur in Malaysia. And we also continued our capacity investments in Lithuania, in Italy, Canada, and Germany, where we are building new facilities and invest in modern machinery. Those will all be finalized during our second quarter. At the same time, we started an expansion also of our production facilities in Dahl in Norway. As in all systems, we like to highlight important product launches. And here we are following up our successful launch of our Genius AHU and this side-by-side version, but also on our updated integrated and full reversible heat pumps with our next generation excess control systems that we have on our air hand units. We're also glad to report, as you know, that we have finalized the move and the relocation of the Managa production from Germany to Slovenia in our first quarter, according to the plan. And finally, of course, we want to highlight that This year, 2024, actually in October, we celebrate our 50 years anniversary for the company. But that's switching to the next slide, slide number five, and looking at the different markets and their shares. So let's have a look at the markets in the quarter. As you know, we have a global and quite diversified customer base, which provides us with a solid foundation for profitable growth. Looking at the different regions, starting with the Nordic, which represents 14% of our total turnover in the quarter and stable. Western Europe has a 45% share and is thereby compared to the same quarter last year in a slight decrease from 46% to 45%. Eastern Europe, stable at 13% share, and North America has become a 13% share today. Other markets, which, as you know, incorporate North Africa, Turkey, Middle East, and Asia, is continuing its growth path, and increases from 14% to 15% of our total sales in the quarter. By that, we continue with a closer look at the financial outcome in the quarter, and I hand over to Anders to the next slide.

Thank you, Roland. I will start off talking about net sales then. Net sales in the quarter amounted to 3,111,000,000 compared to 3,175,000,000 last year. This is a decrease in sales of minus 2%. However, it should be noted that in the comparison that last year's figures were very strong due to the recovery of the earlier supply chain problems that led to an organic growth last year of 10.7%. In Q1, we are reporting a smaller negative organic growth of 0.3%. can currently see that the previous negative trend in declining organic growth is starting to flatten out to give a bit more flavor on the net sales we saw organic growth in eastern europe north america middle east asia and africa the acquisition of femme in malaysia contributed to sales by 0.5 percent And then finally, currency effects negative by minus 2.2% coming from the strengthened Swedish krona during the quarter, where the biggest effect is from the Euro-SEC conversion. Then we come to the geographic breakdown, and I will focus on the organic growth rates for each region. Starting off with the Nordics, where all major markets in the region contracted during the quarter, leading to a negative organic growth of minus 4.1%. This is mainly due down to the reduced activity in the residential sector that we experienced for some while. In Western Europe, we saw an organic sales decline of the same number of minus 4.1%. Within the region, we can see both positive and negative signs. We had a positive development in Italy, Spain, and France, but continued negative development in our biggest market, Germany. In Eastern Europe, the organic growth was positive with plus 3.7%. Positive development in Azerbaijan, Serbia, and Czech Republic, while markets were slower in Slovakia, Slovenia, and Poland. In North America, the organic growth rate was 1.8% plus, which was split up in a very positive Canadian market while the U.S. market contracted in the period. In Middle East Asia, Australia, and Africa, we had good growth of 10.7% organically, driven mainly by the markets in Malaysia, India, and Singapore. So all in all, the organic growth in total amounted to minus 0.3%. We are proud of our gross margin for the quarter. It was strong and ended up on 36.0% compared to 34.6% in the previous year. The increase is affected by previous price increases, a change in product mix, but also positive effects from the divested AC business. Our operating profit margin amounted to 9.8% compared to 10.5% in the previous year. The operating margin is lower than last year, as you hear, but however, last year was exceptional. And in comparison with the previous years, 21, 22, 22, 23, we can confirm that we are gradually improving the margin with our profit improvement actions. It is, of course, possible to improve the margin even further in a better market situation. Selling and admin expenses in comparable units increased by 3% or 24.6 million. Profit of the tax amounted to 210 million compared to 242 last year. We had a negative effects from net financial of minus 16.8 million compared to minus 18 last year, where currency effects on loans and bank balances amounted to minus 0.4 million. and the interest expenses amounted to minus 15.6 million. By reducing our net debt significantly, the interest expenses is 5.3 million lower than the same period last year. The tax rate for the period amounted to 27.1% or 78.3 million. And then finally, the cash flow for the quarter. Our working capital increased leading to a decrease in the cash flow by minus 190.9 million, and this was mainly due to the increased trade receivables, decreased trade payables, but also smaller effect than from increasing inventories. This led to a free cash flow of 91.3 million compared to 177 last year. Our deaths then are significantly lower than last year, amounted to 1 billion 56 million compared to 1.4 billion the one year ago. Net debt to adjusted EBITDA amounts to the very low 0.71 compared to 0.9 last year. And by that, I hand it back to you, Roland.