Systemair AB (publ)

Thank you very much and good morning all and very welcome to the presentation of our fourth quarter report concluding our financial year 24-25 which is also our 50th business year. We will start off with a rather short presentation and then we will open up for questions at the end. The presentation you will find on our start page on the investor relation website if you scroll down a little bit. And by that, I hand over to Roland to start with the presentation.

Thank you and good morning, everyone. Roland Kasper, CEO, and welcome to our quarter four presentation. I'll jump directly into it and go to the agenda. So what we want to cover in this short presentation would here be system error, of course, in brief, then the fourth quarter summary, and then the fourth quarter financials presented by Anders. I'll then share some sustainability highlights, projects and product launches, and then we open up for the Q&A. By that, switching then and going to Systemair in brief. So Systemair, we're operating based on our core values of simplicity and reliability. Our business concept is to develop, manufacture and market energy efficient, high quality ventilation products. And with our customers in focus, we are determined to meet their expectations on delivery reliability, availability, sustainability, and quality. Our company, as you know, was established in Kinskadeberg in 1974 by our chairman and founder, Mr. Jelle Engström. And in our last fiscal year, we achieved a total annual turnover of around about 1.1 billion euros. SystemAret was listed at the Nasdaq Nordic Stock Exchange Market in October 2007. Today, we proudly operate our own sales companies in 51 countries, together with 26 factories in 19 countries. And with our about 6,700 employees, we in Systemair are present and sell to more than 135 countries all around the world. Switching to next slide. A short strategic update on our fourth quarter. So we had a strong organic growth in all European regions. We also celebrated the inauguration of our new 19,000 square meter state of the art manufacturing facility in Hyderabad in India in the quarter. And finally, system as a mission target were approved by the science based target initiative. This is significant milestone in our sustainability work. Then on the right side here, you see the highlights within public affairs in March. We at Systemair participated on the ISH Fair Frankfurt in Germany, which is one of the biggest ventilation or HVAC fairs in the world. This year's exhibition in March, Systemair proudly hosted some of the technical and legislative discussions forums. Also for us, a successful fair, as it at the end also counted more than 166,000 visitors, which is a new record. As always, we also presented some exciting new and technical cutting edge products, especially to mention here our new air handling unit versions from Topfex and G-NUTS with integrated heat pumps, but also our new and smart, efficient air conditioning solutions. And finally, I think it's worth to mention the old technical, totally redesigned and equipped with newest possible technical solutions, Managa Compass units with CO2 as refrigerant. And I'll come back to that later in the presentation. switching then sorry short two markets and the next slide slide number five but just a short look in the markets um as you know we are a global and diversified customer based and which provides us with a solid foundation for profitable growth looking at the different regions this quarter starting with the nordic region which represents 17 percent of our total turnover and North America at the same 12%. Other markets, which, as you know, incorporates North Africa, Turkey, Middle East and Asia, is stable at 15% of our total sales in the quarter. This is actually the first time all regions are unchanged in their share of the total sales versus the same quarter the year before. And by that, we continue with a closer look at the financial outcomes in the quarter, and I hand over to Anders.

Thank you, Roland. So first of all, our net sales amounted to 3.002 billion compared to 3.069 billion last year. This corresponds to a decline in sales of minus 2.2%. This decline, however, mainly relates to currency effects. The organic growth, as mentioned by Roland, was positive by 0.5%. We can conclude that for the Third quarter in a row, we are reporting an organic growth in a relatively slow market. Slide number seven. To give a bit more details behind the net sales development, we saw organic growth in all European regions, while North America, Middle East, Asia, Australia, and Africa had negative development in this quarter. Acquisition of FEM in Malaysia had a minor effect on sales and contributed by 0.3%. And then finally, currency effect. The strengthened Swedish kronor resulted in a negative effect on sales by 3.0%. Our main currency exposure is toward euros, US and Canadian dollars and Norwegian kronor. Going to slide number eight. We come to the geographic breakdown and I will talk about the organic growth rates for each region. Starting off with the Nordics, where we saw a decent growth for the quarter in Sweden, Denmark and Finland. While the Norwegian sales declined slightly, but overall the market has been holding up quite well. All in all, a positive organic growth in this region, also in the current quarter of plus 4.5%. Going to Western Europe, we saw a growth of 5.5% for the quarter, which we think is quite strong. The region has experienced positive development in Netherlands, France and Italy, while the German market is still not back on track, along with countries such as Austria and Spain. We although are happy to see yet another quarter with positive organic growth in Western Europe. Going into West Eastern Europe, we had a solid organic growth of 11.2%. Sales increased in Czech Republic, Slovenia and Slovakia, while Poland, Lithuania and Romania declined. The sales in this region tend to be quite volatile from quarter to quarter due to a high share of project driven sales. And then over to North America, where the organic growth rate was negative by minus 8.8%. We saw a good growth in Canada while US sales contracted. The Canadian growth relates mainly to our residential products. Certainly, the ongoing tariff discussion is creating a volatile market situation in the US. As described in the report, we have a regional production strategy with factories both in the US and in Canada. So if needed for economic reasons, there are possibilities to transfer production volumes and competence from Canada to the US to mitigate these effects. We also saw boosted sales figures in the last quarter due to a change in the legislation for refrigerants implemented from January. This had a negative impact on our fourth quarter in North America as well. And then Middle East, Asia, Australia and Africa, we had an organic sales decline of minus 16.8%. This decline was mainly driven by the markets in Turkey and India. In India, we had delivery constraints while moving the production, as Roland mentioned, in Hyderabad to a completely new factory. We are now back to normal delivery capacity. And in Turkey, last year's Q4 was boosted due to a large project delivery, resulting in tough comparable figures. Most of the other countries in this region showed continued good growth. All in all, the organic growth in total amounted then to plus 0.5%. Then heading into slide number nine. Our gross margin in the quarter was again strong and amounted to 36.5% compared to 35.1% in the previous year. We are happy to see this continued positive development. This is due to a high utilization in several of our more important factories, a favorable product mix, but also the contribution from implemented cost reductions and efficiency measures made. Our adjusted operating profit amounted to 260 million for an operating profit margin of 8.7%. compared to 6.8% in Q4 last year. The adjustments for the quarter relates to bad debt losses of 13.9 million, the acquisition of the two last agents for Manerga in Germany at the price of 27.1 million. And we have also adjusted for the capital gain of 27.8 million from the divestment of Manerga's factory in Mülheim in Germany. Selling and admin expenses in comparable units increased by 50 million. Going to slide number 10. Profit after tax amounted to 118 million compared to 167 last year. The main difference here relates to negative currency effects of minus 82.3 million on receivables and bank balances. Our interest expenses amounted to minus 21.4 million compared to minus 22.9 million last year in Q4. And the tax rate for the period amounted to 28.7%, corresponding to 42.3 million in tax. And then slide number 11, my last slide. A positive cash flow development for the quarter Our working capital decreased by 89.2 million, leading to an increase in the free cash flow. This was mainly due to decreased trade receivables. Our net investments in the quarter amounted to 140.6 million relating to finalizing investments in Canada and in Sweden. And this leads to a free cash flow of 240.3 million compared to 76 million last year. Our net debt is lower than last year and amounts to 901 million compared to 1,070 million one year ago. The net debt to EBITDA amounts to the very low 0.56 and we have plenty of headroom for strategic M&A and further investments. And finally, as you might have noticed, the board of directors suggest to a dividend of 1.35 Swedish krona per share compared to 1.20 last year. The suggested dividend amounts to 41.3% of the net profit, which is above our financial target at 40%. And by that, I hand back to you again, Roland.