Wästbygg Gruppen AB (publ)

Welcome to this presentation of the report for the third quarter of 2024. Today I am Jonas Gjernahall, the CEO of the Vestby Group, who will present and guide you through. Unfortunately, our CEO Peter Brynge is not present, because he is currently ill due to an implanted operation. I will take you through the report and I think we will start by going straight in and summarizing the outcome for the first nine months and the third quarter. We can see that we are still living with the challenging housing market. We have also carried out restructuring in the company during the third quarter to adapt to a smaller production volume in 2025. These are the factors that affect the result. Restructuring of the cost, linked to personal savings and a continuing challenging housing market, weigh the results for the third quarter. If we look at our business order, we see that logistics and industry show positive results. As we have communicated before, we are now in the process of increasing production supply in the table by building their production supply for green steel. We have also communicated that the production start has been pushed forward this year and that the majority of the order stock we have on that project will be released in 2025. We are positive that we are in the process and it is an important contribution to the green environment. We see a lot of progress in order to drive and carry out this project together with the customers. We look at our order in the third quarter, it is about 600 million. Historically, we have had a weaker order in the third quarter, linked to the fact that it is a large part of the quarter that goes to the semester. We also see the strength to have a broad three-business area in our business. When we work on a volatile market and the different business areas go in different cycles, we see that clearly when we look at our order. We see that it is mainly commercial that has contributed to the order start in the third quarter. What is also pleasing is that we have a number of phase 1 agreements that we signed earlier this year and at the end of last year, which have now also passed in phase 2. This shows that structured work on the calculation and a good dialogue with the order to create conditions to get new projects even in a tougher market situation. We also have new green obligations in the third quarter, which is a forward-looking approach and a step in the work to recreate loneliness and environment in new business when the market turns. The interest was much greater and we see positively that we have continued confidence from our investors. In the context of the implementation of the obligation, we also launched an updated green framework. By following our green framework, we ensure that the west group is still a relevant and attractive choice while we are on the way to our new climate goal, to achieve climate neutrality throughout the entire climate crisis 2045. We have also recruited a new CFO for the west group, Lars Just. Lars comes closest from the municipal housing company in the future and I look forward to welcoming him to the concern. He joined his service at the year shift and takes place in the concern management. The interim CFO Peter Bryng is still there and ensures that Lars is in place. Let's take a closer look at the numbers for the quarter. When it comes to the outcome of the third quarter 2024, we land on revenues of 1.1 billion crowns, which is in parity with the corresponding period previous year. The revenues came mainly from business and logistics and industry, as well as commercially, much due to the still weak market on business housing. During the first quarter, we landed on a moving result of minus 47 million crowns, mainly due to the cost of restructuring due to the personnel and the challenges we have faced on the cost side in some housing projects that are terminated in due time. Let's take a closer look at the results for the first nine months. We have a revenue of about 3.3 billion crowns, which is just under 500 million crowns lower than the corresponding period previous year. The revenues came mainly from business, logistics and industry, as well as commercially. The trend for the first three quarters is the same as for Q3, weak market for business and housing and lower than expected processing in our large industrial projects. During the first three quarters, we land on an accumulated result of minus 125 million crowns. This is, as I mentioned earlier, largely due to the advanced processing pace in some large projects, increased project costs and concessions under entrepreneurs which have affected the project in the emotional sector earlier this year. Let's take a closer look at the different business sectors starting with housing. We see that we continue to act on a challenging market. In the last September, there were about 1,000 apartments in production and 50 have been completed during the quarter. During the ongoing housing project, there is currently a clear overweight against rental properties with a main community housing company that we are hiring. If we look at the number of apartments in production, this category is half. Despite a continued challenging situation in the housing market, we have a number of agreements with the municipal housing company Lulebo on an extensive renovation of a housing complex with 36 apartments. In addition, we have acquired a central housing complex in Malmö where we plan to develop and build 80 apartments. The order summed up to 534 million crowns and to be compared with the previous year, which was 900 million crowns. Business income during the period rose to 206 million crowns, to the full of the continued reduced volume. The result rose to minus 32 million for the second quarter and accumulated for the year to minus 85. Some of the projects we have had economic challenges in 2023 are still in production. There are lower margins than what can be created before and we remain until it is handed over, which will happen during the fourth quarter of 2024. In addition, the results of the renovation cost are also charged for the housing. We see a carefully increased interest among the housing industry, even if the sales of self-developed housing rights are not yet in parity with the previous market situation. We also see small positive trends, especially on the public side, around new orders coming out on the housing side. So small positive signals still within the housing market. If we go over to commercial, we see that we have a total of about 118,000 square meters of production at the beginning of the second quarter and about 24,000 square meters are completed during the quarter. On the market as a whole, the need for social and special properties is still relatively large and public orders are active in bringing out new projects. The income for the third quarter was prepared at 308 million crowns, which is somewhat lower than the corresponding period last year. The movement result for the third quarter was minus 16. A large part of the negative results in the fallout of the We have a stock of about 1.4 billion crowns from the third quarter. Finally, we go over to logistics and industry. We have almost 360,000 square meters of production at the beginning of the third quarter and 15,000 square meters completed during the period. The logistics market in Sweden is not as strong as before. As we have previously communicated, we see a careful attitude towards investors, as there is a relatively large number of vacant logistics stores in Sweden, which have been built on speculation by various manufacturers in the industry. This makes it take a long time to hire out logistics stores, which also makes it take a long time to make decisions about new combinations. At the same time, we still see that there are several projects to be counted on and that we are in discussions, but as I said earlier, it takes a long time to reach the goal and get signed contracts. The income for the quarter goes up to 576 million crowns, which is almost 200 million more than the corresponding period previous year. The movement rate for the quarter goes up to 20 million. The result is a little bit of increased costs in a couple of projects, after a larger market entrepreneur went bankrupt at the beginning of the year, while the processing rate in our increasing projects in the table has not yet reached its peak. For the period from January to September, the accumulated movement rate goes up to 57 million compared to the corresponding period previous year. The order income during the quarter went up to 67 million crowns, but the order stock in the business sector is still strong, with about 2.5 billion crowns. Intensive market work is underway to ensure new business progress. If we go over and summarize the total order income at the beginning of the third quarter, we see that the order income for the quarter is summarized to 611 million crowns, which is about a total order stock of 4.5 billion crowns, which is in line with the same period previous year. We still see an increase in the business sector logistics and industry in the order stock, while the business sector and housing continue to decrease somewhat. We see that the business sector, as well as logistics and industry, continue to have relatively high activity on the market, but the number of demand layers in housing is still low, even if we then see some positive signals and some increased activity here in the fall, especially from public places, even within the housing sector. If we go over and look at what it looks like from our financial goals, we can see that the growth after the income decrease during the fourth quarter of 2023 and further during 2024 falls below the target of 10 percent loss over time. The profitability is so well during the quarter that it is far below our goal, and that is why we continue to have our absolute main focus, where we have taken measures and continue to take measures. Despite weak profitability, the solitude drops by 31 percent, which is well above the target of 25 percent. This gives a stability forward. The solitude for the period can be commented on, because the period is affected by some negative timing issues, where the customer supply side is somewhat higher than normal. We also see that on the housing data, we still had the income being an old obligation, not completed, which means that the balance of income is boosted at the time of the quarter-end of this, which then affects the solitude. With that, it is time to summarize the quarter and our way forward. As we have been in earlier, the full focus is to recreate profitability in 2025, and we have then carried out measures during the quarter to adapt the organization to a new market position and a lower production volume. We see that the condom cycle will always exist, but the experience of the educational place cycle differs between our business areas. In addition to the additional efforts we have carried out, we are working strategically with sales and marketing, as well as developing our products and processes. Among other things, we have entered into agreements with new co-operators to find more business opportunities. We are also focusing even more on what has been the key to our success over the years, long-term cooperation, where we, by being early in the project, can contribute to cost-effective solutions for the project. And where we can also see evidence of the work during the three-week period, where we have several different ways that have gone into FOSS 3. We continue to work with companies that are responsible for working with the overview and consumption of our property, and the solidity is still well above our goal in helping us in a challenging market. Expected interest rates and so far slowdown inflation give a hope for a more positive market development in 2025, even if we see that it may fall somewhat. We are still convinced of our long-term strategy, when the business within the three business orders that are responsible for our core business will generate both good profitability and sustainable growth over time. With that, I would like to thank you for listening, and then we open up for questions.

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Vi har inte heller fått in några skriftliga frågor, och med det vill jag passa på att åter gärna tacka för att ni har lyssnat in på vår presentation, och önskar er en fortsatt trevlig dag. Tack!