Troax Group AB (publ)

Hi everyone and welcome to Trovaks quarter four report. My name is Martin Nyström and as always I have Anders our CFO with me here today and we'll go through the quarter four result and key events. After the presentation we'll open up for a Q&A session and by that let's dive into the quarter. The fourth quarter was for Trovax a mixed bag of outcomes. In total, we report a minus 3% order intake growth organically, and in the minus 3, we have excluded the FX effect. We reported 10.8% EBITDA margin, excluding the one-off effects, which I will come back to, and netted a 1.7%. If I start with the market and the market conditions, I think we can conclude that in the fourth quarter, the markets continue to trend softly, largely as we've seen throughout 2025. In Europe, we continued largely as in the third quarter. We had some signs of recovery in the warehousing segment, as well as in the general industry segment. But at the same time, we also continue to see the automotive demand being soft. In the Americas, we saw a continued decline, and here it's a two-sided story. We do have a lot of activity and a lot of quoting activity with our American customers, but at the same time, there is still hesitation to make decisions, which makes us not come back to growth. APAC, our APAC region has had a fantastic 2025 overall with significant growth. Towards the end of the year, we saw the order intake softening a little bit in the quarter. Although I would like to say that the pipeline and the activity remains strong and high in APAC. Also, I think when we look at the order intake and at the market, we still had a negative impact in this quarter, roughly by 2 million euros due to the factory move that we've had during the autumn between Poland and Sweden. So if we compare to the third quarter, we had less of a negative impact from this. now we're completed with the with the factory movement we will start taking on orders again beginning of 2026. uh the other uh key topic here is our lower ebta in the quarter uh we we are now starting to feel really low volumes in our in our highly automated manufacturing uh so that's is one thing that pulls our profitability down for the quarter and we've also two that had some two specific issues in the quarter the first one is our north american operations Due to the low order intake we saw in Q3 we now in Q4 have low volumes in our manufacturing facility which drive our profitability down. We saw we had delayed pricing implementation in Q3. This is something we have adjusted so in the order intake numbers we do have some pricing impact. But this has not yet hit the P&L yet. To that, we have operational challenges in our old facility with old equipment, unstable equipment, a different make-buy mix. And all in all, this in total diluted our EBITDA margin by roughly three percentage points or 300 bps in the fourth quarter. The other specific challenge that we had in the quarter was our commercial partitioning business, which suffers from low margin, low volumes, and also a profitability problem. And that in the quarter contributed with 1.3 percentage points or roughly 130 bits. If I move over to our supply chain optimization initiatives, we are making very good progress. We do have run off impacts from this. So in the fourth quarter, it's very pleasing to see that our factory transfer from Poland to Sweden has been completed. We have completed this on time and within the budget during the fourth quarter. So we're going into 2026 in a much better shape. We're also having the factory transfer from Chicago to Nashville in the US, which is moving according to the plan. And we plan to finalize that moving close down Chicago towards the end of the second quarter this year. Combined with these projects, then combined, we have a related one-off costs. And in the quarter, we took 4.2 million euros covering the additional cost for this. It's double rent. double set of people as we ramp down, ramp up, as well as we've looked over our assets, which means that we have written off some inventory, etc. And then going forward to guide a little bit for the remaining part of the move in the US, we estimate that we will have in addition 2.2 million euros in the first and second quarter of 2026. up until we have finalized our American move. And we will report that as these costs occur. Finally, in the fourth quarter, I think we have concluded three very important strategic acquisitions. It's the platform acquisition of Vishnet, which provides market leadership in China as well as in Asia. And then we have our Deflex and Stompy acquisitions, making us a platform for flexible barriers and a very needed product portfolio. And I'll come back to this in the next coming slides. If I start with Vishnet, in the beginning of January, we closed this deal, which we announced during the fourth quarter. In practice, this means that we are now the leading player for machine guarding. And we also have more attractive players. Portfolio and exposure towards the data centers globally through the wire trace or cable management systems and in 2024 we vision it had 26 million euros roughly at the profitability that that is the same as throw X group for 2025 and starting from January quarter one this year vision it is part of the choice group. The second area where we made acquisitions, and we've made two acquisitions here, we now have a complete and very strong offering for flexible barriers. So for logistics purposes, we have Deflex, which has been part of of Danish-German Dankop before. So we have a strong product offering in the flexible barriers for intra logistics, which go very well hand in hand with the core machine guarding offering that we have in the group. And secondly, we also acquired Stompy, which has a unique technology for this, mainly targeting the food and BEV as well as pharmaceutical segments. So we're very pleased to have all these three acquisitions and companies on board into the Troax Group. Then if I come back also to our North American expansion, we are aiming and we will improve our efficiency and expand our capacity in North America. We have done good progress, as I said. We will see when we're through this move, we will see higher competitiveness in the U.S. We will bring this to the 21st century when it comes to automation, best practices and also a better, more cost effective location in the southern part of U.S. During the fourth quarter, we started to move our inventory and we're also busy commissioning and installing machines, which will then be completed during the first and the second quarter. then i'd like to say and i think this is this is something that we the team should feel very proud of we have now also optimized our our european footprint which means that our racking portfolio has now been streamlined we have moved our operations from poland to sweden as planned during the fourth quarter and we'll now going forward enjoy both the order intake and the orders and sales coming back and we will also enjoy the the cost efficiency and the savings that were attached to this program i'll then flip to the market development in the quarter and it's largely a you could say a continuation of what we saw during during 2025 If we look organically excluding FX, we came in at minus 3%. So that is sequential and improvement to the third quarter where we had minus 7%. If we then look at this from a geographical point of view with Northern and Southern Europe, we came in at minus four and minus one respectively. We see automotive driving this downwards while we do in fact now also see some coming back in the warehousing segment. It's still early days for this, but surely a positive development which bodes well for 2026 and onwards. In Americas, we came in at minus four. Automotive also here is driving this downwards, and we do see some positive signs in the other industries segments as well. An APAC came in flat in the quarter. So very much a continued continuation of what we saw in Q3. But with the difference here that automotive is now trending slightly downwards while we have warehousing and general industry moving slightly upwards. And with that, I'd like to hand over to you Anders to walk us through the financials of the quarter.

Thank you very much, Martin. Let's start with the order intake table. The truck group reached 64.4 million euros in order intake in Q4 of this year, compared to 68 million in last year. It's a decline by 5%, of which 3% is related to organic decline, and the remaining part is related to structure and ore and FX. If we look at the full year 2025, we reached 261 million euros in order intake compared to 277 million in 2024. That's a decline by 6% or 5% organically. As Martin mentioned here earlier, we do see a sequential growth in order intake compared to Q3, and we also have a favorable book-to-bill ratio of 5% in the fourth quarter. Moving over to sales, we reached 61.2 million in sales compared to 66.7 million in last year, Q4. That's the 8% decline in sales. Looking to the full year, we reached 262 million in sales compared to 278 million in prior year, which is 6% decline in sales year over year. Going then to the EBITDA development, we reached 6.6 million euros in EBITDA for the fourth quarter, which is a 10.8% EBITDA ratio, to be compared with 11.5 million euros in Q4 of last year, or a 17.2% EBITDA ratio. Looking into the full year, we reached 36 million in EBITDA, or slightly below 14% in EBITDA ratio compared to 48 million in full year 2024 or a little bit more than 17% in EBITDA ratio. So looking at the operating cash flow, we had cash flow from operations of 4.8 million in Q4 of this year compared to 14.4 million in Q4 of last year. The ratio for this year was 73% of EBITDA versus 126% in Q4 of last year. Again, looking at full year, we reached 29.9 million in free cash flow from operations, or 82% of EBITDA, compared to 42.4 million in last year, or 88% ratio. The net depth development, we have now increased a little bit due to the acquisitions that we have made in the fourth quarter. We are still way below the target of 2.5, so we reached 1.7 in the fourth quarter, which means, of course, then we have continued firepower for future acquisitions.

And last but not least, a summary of everything I mentioned earlier.