Wästbygg Gruppen AB (publ)

Yes, hello and welcome to this presentation of the Westby Group's report for the third quarter of 2024. Today it is me, Jonas Gjernahall, CEO of the Westby Group, who will present and guide you through it. Unfortunately, our CFO Peter Bryn is not present as he is currently sick due to an unplanned operation. But I'm going to take you through the report here, and I think we'll start by directly going in and summarizing the outcome for the first nine months and for the third quarter. And we can see that we are still living with the challenging housing market. We have also implemented during the third quarter restructuring in the company in order to adapt to a smaller production volume 2025. These are factors that affect the result. Restructuring of costs linked to personnel savings and also a continued challenging housing market, weigh the results for the third quarter. Tittar vi på våra affärsområden så ser vi att logistik och industri visar positivt resultat. Som vi har kommunicerat innan så är vi nu igång på Stegras produktionsanläggning i Boden med att bygga deras produktionsanläggning för grönt stål. Men vi har också kommunicerat att produktionsstarten sköts framåt i år och att större delen av den orderstock som vi har på det projektet kommer vi få utfall på under 2025. Men vi ser positivt på att vi är igång och det är ett viktigt bidrag till den gröna omställningen och att få driva och genomföra det här projektet tillsammans med beställaren ser vi mycket fram emot. Tittar vi på vår orderingång för tredje kvartalet så landar den på drygt 600 miljoner. Tittar vi historiskt så är det så oftast att vi har en have had and often have a weaker order entry in the third quarter, connected to the fact that it is a large part of the quarter that goes to vacation times. But we also see the strength here now to have a breadth with three business areas in our company when we work on a volatile market and the different business areas go in different cycles. And we see that clearly when we also look at our order entry. And then we see there that it is mainly commercial that has contributed to the year-end in the third quarter. And what is also exciting is that we have a number of FOS-1 agreements that we signed earlier this year and at the end of last year, which have now also passed in FOS-2. And that shows that a structured calculation work and a good dialogue with the orderers create conditions to get new projects even in a tougher market situation. During the third quarter, we have also issued new green bonds, which is a forward-looking approach and a step in the work to create profitability and encourage new businesses when the market turns. The interest was greatly appreciated and we see positively that we have continued trust from our investors. In connection with the fact that we issued the bonds, we also launched an updated green framework. Genom att följa vårt gröna ramverk säkerställer vi att Väsbygruppen fortsatt är en relevant och attraktivt val samtidigt som vi hjälper oss på vägen till vårt nya klimatmål att uppnå klimatneutralitet i hela värdekärran 2045. Vi har också under 300-talet rekryterat en ny CFO för Väsbygruppen, Lars Just. Lars kommer närmast från det kommunala fastighetsbolaget Framtiden och jag ser mycket fram emot att få välkomna honom här to the board. He applied for his service at the turn of the year and then takes place in the board management. Interim CFO Peter Bryng is still there and ensures an orderly transfer until Lars is in place. Let's take a closer look at the figures for the quarter. Now we can see that when it comes to the outfall for the third quarter of 2024, we end up with revenues of 1.1 billion kronor, which is in parity with the corresponding period last year. The revenues have mainly come from the business sector, logistics and industry, as well as commercially. Much due to the still weak market for business sector housing. During the first quarter, we ended up with a turnover of minus 47 million kronor. Främst på grund av omstruktureringskostnad till full av det personalingenjörerna som har genomförts, samtidigt som det har fortsatt funnits utmaningar på kostnadssidan i några bostadsprojekt vilka avslutas i närtid. Tittar vi närmare på utfallet för de första nio månaderna, så ser vi att vi har en intäkt på drygt 3,3 miljarder kronor, vilket är knappt 500 miljoner kronor lägre än motsvarande period föregående år. Even here, the main income comes from business areas, logistics and industry, as well as commercial. The trend for the first three quarters is the same as for Q3. We have a weak market for business areas and housing, and lower than expected employment in our large industrial projects. During the first three quarters, we landed on an accumulated turnover of minus 125 million kronor. This is, as mentioned earlier, largely due to the advanced employment pace in some large projects, ökade projektkostnader samt konkurser hos underentreprenörer, vilket har drabbat projekten i känslaskedjan tidigare i år. Tittar vi närmare på de olika affärsområdena och börjar med bostad så ser vi här då att vi fortsatt agerar på en utmanande marknad. För den sista september var det cirka 1000 lägenheter i produktion och 50 stycken har färdigställts under kvartalet. Bland det pågående bostadsprojekten finns i nuläget en tydlig övervikt mot hyresrätter med huvudsak kommunala bostadsbolag som beställare. Sett till antal lägenheter i produktion står denna kategori för hälften. Trots en fortsatt utmanande läge på bostadsmarknaden har vi under kvartalet ett avtal tecknats med kommunala Det kommunala bostadsbolag Lulebo om en omfattande renovering av ett bostadshus med 36 lägenheter. Utöver det har vi förvärvat ett centralt belägentomt i Malmö där vi planerat att utveckla och bygga ett 80-tal lägenheter. Orderstocken summerar till 534 miljoner kronor och att jämföra med 900 miljoner kronor motsvarande period föregående år. The turnover during the period went up to 206 million due to the continued decreased volume. The result went up to minus 32 million for the second quarter and accumulated last year to minus 85. Some of the projects that we have had economic challenges under 2023 are still in production, where lower margins than what was originally calculated for is and it remains until it is handed over, which happens during the fourth quarter of 2024. In addition, the results of housing are also burdened by the cost of restructuring. We now see a carefully increased interest in housing purchases, even if the sale of self-developed housing rights is not yet in line 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. And if we go over to commercial, we see that we now have a total of about 118,000 square meters of production at the start of the second quarter. and about 24,000 square meters were closed during the quarter. On the market as a whole, the need for social and special facilities is still relatively large, and public orders are active with the introduction of new projects. For the third quarter, revenues of 308 million kronor were provided, which is somewhat less than the corresponding period last year. The movement result for the third quarter goes up to minus 16. A large part of the negative results, compared to the decline, is a specific project due to both increased turnover as well as supply costs and restructuring costs. Moreover, the business area is in a phase when new collaboration projects have been launched, which initially happens when a new cost reduction is changed for a specified time. The order entry during the quarter went up to 489 million kronor and we have thus an order volume of about 1.4 billion from the third quarter. Finally, we move on to logistics and industry. We have almost 360,000 square meters of production at the start of the third quarter and 15,000 square meters completed during the period. The logistics market in Sweden is not as strong as it was before. As we have previously communicated, we see a careful attitude from investors, since there is a relatively large supply of vacant logistics locations in Sweden, which have been built on speculation by various actors in the industry. This causes and causes the effect that it takes longer to rent out logistics locations. which means that it also takes longer to make decisions about new buildings. At the same time, we still see that there are several projects to be calculated and that we are in discussions, but as I said earlier, it takes longer to achieve goals and get signed contracts. Income for the quarter. It went up to 576 million kronor, which is close to 200 million more than the corresponding period in the previous year. The turnover for the quarter went up to 20 million. The result has brought back some of the increased costs in a couple of projects after a larger market entrepreneur went bankrupt at the beginning of the year, while the pace of improvement in our Stegra project in Boden still hasn't reached its peak. For the period from January to September, the accumulated revenue amounted to 57 million kronor compared to the previous year's minus 65 million kronor. The turnover during the quarter went up to 67 million kronor, but the business area's turnover is still strong with about 2.5 billion kronor. An intensive marketing work is underway to secure new businesses in the future. If we go over and sum up the total order volume at the start of the third quarter, we see that the order volume for the quarter is summed up to 611 million kronor, which means a total order volume of 4.5 billion kronor, which is in line with the same period the previous year. We still see an increase in the turnover of logistics and industry in the order volume, while the turnover of housing continues to decrease somewhat. We see that within commercial trade as well as logistics and industry, there is still relatively high activity on the market. But the number of supply chains within the housing sector is still low, even if we see some positive signals and some increased activity here in the fall, especially from public orders, even within the housing sector. If we go over and look at what it looks like based on our financial goals, Tillväxten efter intäktsnedgång under fjärde kvartal 2023 och vidare under 2024 landar under målsättningen om 10% kager över tid. Lönsamheten ligger såväl under kvartalet som på rullantagen långt under vårt mål och det är därför vårt fortsatta vårt fortsatt vårt absolut huvudfokus. Där vi har vidtagit åtgärder och fortsätter att vidta åtgärder. Despite the low profitability, the solitude landed at 31%, which is well above the target of 25%. This gives us a stability forward. It can be commented that the solitude for the period is affected somewhat negatively to some timing issues, where the customer satisfaction side is somewhat higher than normal. And we also see that on the residence date så hade vi fortfarande inlösen av vår gamla obligation inte färdigställts, vilket gör att balansomslutningen boostas tillfälligt över kvartalsslutet av detta, vilket då påverkar soliditeten. Och med det är det dags att sammanfatta kvartalet och vår väg framåt. Som vi har varit inne på tidigare, fullt fokus är att återskapa lönsamhet 2025. Under the quarter, we have implemented measures to adapt the organization to a new market situation and a lower production volume. We see that there will always be a supply cycle, but the experience has taught us that the cycles differ between our business areas. In addition to the additional strengths we have implemented, we work strategically with sales and marketing work. to develop our products and processes. Sometimes we have made agreements with new partners to find more business opportunities. We also focus even more on what has been the key to our success through 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 this work now in the third quarter, where we have several phases that have gone into phase three. We continue to work with companies and debtors to work with supervision of the distribution of our assets, and the solidity is still well above our goals in helping us in a challenging market. Expected interest rates and inflation that has so far stopped ger en förhoppning om en mer positiv marknadsutveckling 2025, även om vi ser att den kanske dröjer något. Vi är fast övertygade om vår långsiktiga strategi. Den verksamheten inom tre affärsråden som utgör vår kärnverksamhet kommer att generera både god lönsamhet och hållbar tillväxt över tid. Med det vill jag tacka för att ni har lyssnat. Då öppnar vi upp för frågor.

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