Systemair AB (publ)

Good morning everyone Anders Ulf here and we're welcome to the presentation of Systemware's second quarter report for the financial year 2025-26. This will be the last report presented by our CEO Roland Kasper and I would like to take the opportunity to thank Roland for a very good cooperation over the years. We will now start off with a short presentation of our second quarter and then we will open up for questions. presentation you will find as usual on our investor relations website and by that I hand over to Roland.

Thank you Anders and good morning everyone welcome to our second quarter report. Let's dive into the report right away by that switching to our second slide which is a little bit of the agenda. We'll start off with a short summary of system area in brief then a summary of the first quarter Then we go into the Q2 financials, follow highlights out of the ongoing quarter and some product launches. And by that, we will then conclude into some Q&A at the end. And let us go directly into the next slide. Slide number three. System Air in brief. System Air, we are operating based on our core values of simplicity and reliability. The business concept is to develop manufacturer and market energy efficient, high quality ventilation products. With our customers in focus, we are determined to meet their expectations on delivery reliability, availability, sustainability, and quality. As you know, the company was established in Skinskatteberg in 1974 by our ex-chairman and our founder, Mr. Gerald Engström. In our last fiscal year, we achieved a total annual turnover of around about 1.1 billion euros. Systemair was listed on the Nasdaq Nordic Stock Exchange market in October 2007, and today we proudly operate our own sales companies in 51 countries out of 26 factories in 19 countries. With our about 7,200 employees in Systemair, we are present and sell to more than 135 countries around the world. Switching to next slide. And here's some updates of our statistics. So a short strategic update for our second quarter. And a nice moment to start with. In the reported quarter, we have an all-time high in sales and operating profit. We see a positive growth trend in all markets in the quarter, which is an encouraging development in Central Europe. And we expect also recovery from current lower levels moving forward. In our second quarter, we moved into our new manufacturing facility in Saudi. This is a continuation of expanding our capabilities in the important market with Made in Saudi products. Moving over to some recent highlights here, Ashok Das, our mentioned director of System Air in India, was elected new AMCA president. Ashok Das' presidency will focus on aligning AMCA's initiatives with major industry megatrends. Also Bertrand Poirier, Our PA officer in North America, out of Canada, has been elected chairman of the board at the Home Ventilating Institute, HVI. Now with Ashok Das MD as president and Amca International, and Raul Corradera sharing Eurovent, and Bertrand now leading HVI, Systemair's ambassadors will help shape better certification standards worldwide. We are proud to contribute to more than 50 industry associations worldwide. Also to highlight in the quarter, we finalized the acquisition of Nadi in India, a market leading manufacturer of industrial fans. Finally, I also want to mention some product highlights. In the quarter, Managa was rewarded for its CO2 Compass air hand units with integrated heat pump at the Atmosphere Europe Summit. I will come back on that later. But also in Asia, systemized air hand units were a major highlight. at the recent Marbex exhibition in Malaysia, where they received the prestigious Product Excellence Awards. We are proud of these achievements. Next slide, slide number five. So let's have a look at our markets in the quarter. As you know, we have a global and diversified customer base, which provides us with a solid foundation for profitable growth. Looking at the different regions, starting with the Nordic here, which represents 16% of our total turnover, the quarter unchanged western europe has 45 percent share and is thereby compared to the same quarter last year and increased from 45 to 44 to 45 percent share eastern europe stable at 13 share and north america shows a smaller decline from 12 to 11 percent share in the quarter other markets which as you know incorporates north africa turkey middle east and southeast asia is continuing its growth path and shows a stable 15 share for total sales in the quarter By that we continue with a closer look at the financial outcome and the quarter and I hand over to Anders.

Thank you Roland. We are happy to summarize our second quarter that from seasonality normally is the best during the year. This quarter we achieved a sales record with 3.271 billion. Start of the quarter was rather slow but it has been picking up month by month and October was really good. Our increase in sales amounted to 4%, but we have had rather high negative effects from currency conversion. So the organic growth was 8.2%. We can conclude that for the fifth quarter in a row, we are reporting an organic growth in a relatively slow but recovering market. We go to slide number seven. We give a bit more details behind the net sales development. We saw organic growth in all our regions during the quarter. As Roland stated, we have completed also the acquisition of Nadi in August, and that contributes with 1.4% to net sales. And then finally, currency effects. The strengthened Swedish krona resulted in a negative effect on sales by minus 5.6%. It comes from the conversion of Canadian and US also euros. Heading to slide number eight. Then we come to the geographic break to focus on the organic growth rates for each region, starting with the Nordics, where we saw growth and continued positive development in the quarter in Sweden, Finland and Denmark. However, the Norwegian market declined in this quarter. All in all, a continued positive organic growth in this region of plus 4.2%. Going to Western Europe where we had an organic growth of 11.1%. Within the region we experienced a positive development in Germany, Italy and Netherlands. We are happy to see positive signals from a low level on the German market. The sales development in UK and Spain was negative for the quarter. All in all, the organic growth in Western Europe was really good, but we need to remember that we are facing rather weak comparables. In Eastern Europe, we had an organic growth of 5%. Sales increased in Czech Republic, Poland and Slovenia, while Azerbaijan and Hungary declined in sales. In North America, the organic growth rate was 5.1%, but the signals in the market is currently mixed. Part of the sales increase relates to price increases as a consequence of the implemented tariffs. In Middle East, Asia, Australia and Africa, we had an organic growth of 10.1%. This increase was mainly driven by increased sales in Saudi Arabia, Australia, Malaysia, while sales in Morocco decreased. All in all, as stated before, the total organic growth amounted to 8.2% for the group. Going to slide number nine. The gross volume for the quarter was again strong and improved to 37.7% compared to 37.3% last year for the same quarter. We are happy to see this continued positive development. This is due to the contribution from implemented restructurings and cost reductions, but also from the good organic growth. Our operating profit amounted to 390 million or an operating profit margin of 11.9% compared to 11.0% last year. Selling and admin expenses in comparable units increased by 9 million. Slide number 10, profit after tax amounted to 265 million compared to 236 last year. Net financial items for the quarter were negative by 37.4. Currency effects on bank balances and loans was negative and contributed with minus 16.3 million. Interest expenses amounted to 18.8 million compared to 19.2 last year. Tax rate amounted to 24.8%, which was 2% lower than last year, which was on the higher side. Slide number 11, the cash flow development for the quarter. We achieved a free cash flow of 188 million. Within working capital, there were a significant increase in trade receivables of 180 million, mainly due to increased sales at the end of the quarter. Net investments of 140 million relates to a larger extent to the production capacity investments Czech Republic, Sweden and Saudi Arabia. Net debt has increased mainly due to investments in our factories and the acquisition of NADI. The adjusted net debt to EBITDA amounts to 0.73 and we have headroom for further strategic M&A and investments for further organic growth. And by that, back to you, Roland.