Systemair AB (publ)

Welcome to System Air Q4 2025-26 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the President and CEO Robert Larson and CFO Anders Ulf. Please go ahead.

Thank you very much. You are all most welcome to this presentation, where me and Anders will cover the fourth quarter for System R. As you heard, after the presentations, we open up for the Q&A. So the agenda, I think it's quite straightforward. Let's move directly into slide number three. Systemair was established in Skinskatteberg in 1974 by Mr. Gerard Engström, who today remains as the main owner and vice chairman of the board. During the years, the company has grown consistently and has now achieved annual net sales of 1.3 billion euros. Systemair was listed at Nasdaq in October 2007. We are a company operating with our core values of simplicity and reliability. We develop, manufacture, market energy efficient and high quality ventilation products, and we are proud of our wide product portfolio. And in addition, we are determined to meet our customers expectations on delivery, reliability, availability, sustainability and quality. Today, we run our own sales companies in 51 countries and our products are available in totally 135 countries. We operate 27 factories in 19 countries and we have about 7,400 employees. Slide number four. So what stands out in Q4 is the strong organic growth in the context of the current market conditions and the uncertain geopolitical situation. We see this as a sign of strength and we are encouraged to continue executing on our continuous improvement agenda. At Systemair we have since long time back had our Systemair production model that allows us to operate efficiently across all our factories. It contains a firm logic, ways of working, best practices, etc., and allow us to achieve scale of economy across many sites. Now we embark on developing and implementing our system air sales model with the same ambition. We want to offer our decentralized sales organization tools and processes to become even more successful, winning more and better business, and at the same time, gain in efficiency. It is in this context we decided to make concentrated effort in the quarter to restructure parts of our German sales and service organization. Yes, there were some one-off costs involved in this specific case, but we are convinced that it will pay off. During spring and our Q4, there were several major international fairs where we showcased new products and developed our customer relationships. And for example, at the Acrix exhibition in Mumbai, India, a new advanced air handling unit called Verox was launched. It is designed for the Asian market. It is strengthening system-wide positioning in high-growth industrial and commercial segments. And it reinforces our commitment to innovation, localization and long-term market expansion in Asia. In the quarter, we also launched a pilot program for women mentorship. We believe that diverse teams perform better, and being a growth company, expanding our talent pool is important for our long-term success. Next slide, please. Slide number five. One strength of SystemAir is a global and diverse customer base, providing us with a solid foundation for profitable growth and also high resilience. Western Europe is continuing as a largest region with 45%, with the other four regions fairly equal in size. Anders will share more details about the development in each of the regions, but you can already here conclude that there was no major shift in share between the regions during Q4. Slide number six. I did already mention it. We are very pleased with almost 10% organic growth in the quarter, given the current market conditions and uncertain geopolitical situation. The mission is to double the size of the company within seven years, which corresponds to 10% annual growth. To make this feasible, a bit more than half of the growth must be organic. So almost 10% in the quarter and slightly over 6% during the last year is just what is needed. With this, I hand over to Anders.

Thank you, Robert, and good morning to everyone. So our fourth quarter of the fiscal year, 25-26, is covering the month of February, March and April. We met pretty easy comparables in this quarter with a negative growth last year of 2%. This quarter started off a little bit slow in February, but March and April showed good growth. Total net sales amounted to 3.28 billion compared to 3.5%. billion more or less exactly last year. This corresponds to an increase in sales by 9.1%. The currency conversion effects have declined during the quarter, so the organic growth was pretty much on the same level at a positive 9.6%. We can conclude that for the seventh consecutive quarter, we are reporting an organic growth in a relatively slow but sluggish and gradually improving market. We go to slide number seven. A bit more details in the net sales development. We saw organic growth in all regions except for the Nordics during the quarter. We completed the acquisition of Nadi in India in August last year, and this has contributed with 1.3% net sales for the quarter. And then finally, currency effects. The strength in Swedish kronor resulted in a negative effect on sales by 1.8%. The effect comes from several currencies since we have operations in many countries. Going to slide number eight. We go into the geographical breakdown and I will comment on the organic growth rates for each region. Starting with the Nordics where we had close to a flat organic sales development in the quarter. The Norwegian market is suffering from low construction within the residential building segment, where we have a relatively high exposure, while the Danish market is currently in a period of lower demand on the commercial side. However, we can conclude a nice growth in sales in the Swedish market and In Western Europe, our single largest region, we are proud to report an organic growth of 9% for the quarter. Within the region, we experienced a positive development, especially in UK, Belgium and Italy. We are also happy to see continued cautious growth on the German market. In Eastern Europe, we had again very strong organic growth of 19%. Sales were especially strong in the quarter in Czech Republic, Poland and Slovakia. In North America, the organic growth rate was 17%. Our North American operation focusing on school ventilation has entered the start of the peak season with good demand in the market. We have also seen several changes in the tariff recently. From the beginning of April, the tariffs increased to 25% of the total product value. But in the start of June, they were revised down to 15% for most of our products. Our ambition, however, is to forward these tariffs to the customers. In Middle East, Asia, Australia and Africa, we had organic growth in sales of 11%. We experienced a quarter with good sales in Turkey due to some larger product deliveries, but also good growth in Australia and Middle East. All in all, total organic growth, 9.6%. Going into slide number nine. Our gross margin was strong and amounted to 36.3%. This was slightly under the 36.5% that we achieved last year, explained by product mix and price increases on components and freight. As a side note, we have communicated price increases to our customers starting from 1st of June. Overall, we are happy to see yet another quarter with strong gross margin. Our adjusted operating profit amounted to 292 million, or an operating profit margin of 8.9%, which is slightly above Q4 last year. The adjustments in the quarter relates to a provision for financial receivable from a previously disposal of a group company of 17.5 million. Further, we have taken a restructuring cost relating to the German sales and service organization of 22.9 million. Selling and admin expenses in comparable units increased by 5%. Slide number 10. Profit of the tax amounted to 214 million compared to 119 last year. Net financial items for the quarter were negative by minus 4 million compared to minus 99 million last year. Currency effects on bank balances and loans were negative and amounted to minus 9 million. Interest expenses amounted to minus 12 compared to 21 last year. We had a relatively high tax rate for the quarter at 29.8%, which is effective for not activated deferred tax assets. Going into slide 11, the cash flow development for the quarter. We achieved a free cash flow of 46 million compared to 264 million last year. Within the working capital, there was a significant increase in trade receivables of 156 million due to the high sales in the quarter. Net investments of 150 million relate mainly to the production capacity investments in India, Slovakia and Sweden that we are currently working with. Our net debt has decreased down to 888 million, which is 13 million lower than a year ago. Adjusted net debt to EBITDA amounts to 0.54, and we have a strong balance sheet that enables us to pursue further investments for organic growth. In relation to that, I would also like to highlight that we have during the quarter renewed our financing agreements of a total of 130 million euro for the coming three years with better terms than before. And then slide number 12. And we are reporting our last quarter of our financial year. Now I would like to summarize what we have achieved. We are proud to conclude an organic growth for the full year of 6.1%, which is in line with our expectations. Looking at the adjusted EBIT, we have achieved a margin that continues to increase for yet another year, taking us closer to our target of 10%. Over to you, Robert.