Wästbygg Gruppen AB (publ)

Hej och välkomna till den här presentationen av Vesbygruppens bokslutskommuniqué för 2024. Vi som är här idag att ta dig igenom rapporten är jag, Jonas Jönnehall, VD och koncernchef för Vesbygruppen och med mig har vi min CFO, Lars Just. Vi drar igång och går in och tittar på väsentliga händelser under 2024 och fjärde kvartalet. We can see that the results for the fourth quarter show a continued challenge in the market, not least in business areas and housing. But all three business areas show negative figures. The end regulation has taken place in a larger market competition within logistics and industry, and it is burdening the results for the fourth quarter. In addition, a few projects som stått för en stor del av de resultatinskrivningar som har gjorts att avslutas under början av 2025 och vi fortsätter arbetet med att minska vår kostnadsmassa genomföra ytterligare anpassningar i organisationen nu här i början av 2025. Vi har också jobbat selektivt med vilka projekt vi lämnar anbud så att vi kan säkerställa att vi levererar både rätt kvalitet och önskade marginaler framåt. Two strategic decisions have also been made here now in early 2025. We see a limited chance for the company to be able to work further on its own with our fine and extensive housing portfolio. We have therefore signed a plan with a larger actor to eliminate the project development business within Affärsamrådet Bostad. And to liberate means and resources and to invest in project development within commercial and logistics and industry, where we have experience and know that the chances of higher margins are greater. The board has also made a decision to implement a new mission under the pretext of a positive decision on the extra stock market on March 3. The company's larger shareholder, M2 Holding, Gårdarike & Fino Förvaltning, has expressed support and has, together with members of the company's board and management group, agreed to sign its prerogative. Trade with thinking rights at Nasdaq Stockholm will be introduced on March 10. A number of members of the management group have also spoken. This is the first report that the new CFO of the Westby Group, Lars Just, is presenting. Lars started at the turn of the year and quickly got into the business and became a key person in the journey forward to recreate profitability. At the turn of the year, Torbjörn Nilsarve also started as the new CEO of the company Logistikkontraktor. He has great experience working across national borders and with key international actors in complex projects. We see good opportunities for a very interesting development for LC in the future. And with that, we'll take a closer look at the figures for the quarter. And I'll hand it over to you, Lars.

Thank you, Jonas. And if we look at the outfall for the fourth quarter of 2024, we have an income of just over 1 billion. And that is in parity with the corresponding period last year. We have continued to work off the strong annual stock we had at the beginning of the year evenly. Income has mainly come from business areas, logistics and industry, as well as commercially. Much due to a still weak market for business areas with housing. Movement results for the fourth quarter rose to minus 207 million kronor. There is a delay in the savings measures that have been carried out since this year, why these have not yet had full effect. If we look closer at the whole year, we have revenues of approximately SEK 4.3 billion, which is almost SEK 500 million less than the corresponding period last year. The revenues have mainly come from business areas, logistics and industry, as well as commercially. The trend for the whole year is the same as for the fourth quarter, it is a weak market for business areas and housing. Due to delays in the beginning of the year in the big projects Stegra and Alcell-Norge, income has been affected in the future, especially when it comes to Stegra. For 2024, we ended up with a turnover of 333 million negative last year, compared to 505 million negative last year. This year, we have prioritized delivery to customers, which is an important part of trust capital. A few projects within the housing sector, which are now closed, have become more expensive to carry out than expected, just like a commercial project that is in its final phase. At the same time, there have been some major competitions in the entrepreneurial field in critical stages, which has meant that we have had to take increased costs in some projects. And we have also taken costs of initial character related to the organizational changes that have been made. At the same time, there has also been a certain sluggishness in the work with adapting the organization to the existing volume, since we do not want to adventure ongoing production and delivery. If we take a closer look at the various business areas, starting with housing, we see that we are acting on a continuous challenging market. As of last December, there were about 600 apartments in production and 400 have been completed during the quarter. No self-developed projects are underway for the present. The last one started in early 2022 and the last one ended during the fourth quarter of 2024. Svag orderinggång har medfört att volymerna minskat i takt med att pågående projekt färdigställs. Bland de pågående bostadsprojekten finns i nuläget en tydlig övervikt mot hyresrätter med i huvudsak kommunala bostadsbolag som beställare. Sett till antal lägenheter i produktion så står den kategorin för 75%. Den minskade volymen slår igenom i samtliga nyckeltal inom affärsområdet. Åderstocken per den 31 december summerat till 380 miljoner. Det ska jämföras då med 853 miljoner motsvarande tid föregående år. During the period, the revenue of the business area rose to 179 million SEK, in parallel with 2023. In the whole year, the revenue rose to 811 million SEK, compared to just under 1.4 billion SEK in the previous year. The result was negative, 160 million SEK for the fourth quarter, and negative 245 million SEK for the whole year. Något bättre än föregående år, men långt ifrån önskat läge. Som jag sa tidigare, några bostadsprojekt som vi haft med oss sedan 2023 har tagit sitt annat marknadsläge, men är i allt väsentligt avslutade nu. En svag positiv signal är att försäljningen av egenutvecklade bostadsrätter ökat under fjärde kvartalet. even if it is far to a market with strong demand. During the fourth quarter, we have acquired unsold apartments in two self-developed housing rights projects in accordance with the agreement we have with the respective BRF. These are now included in the company's stock. If we then look commercially, we have a total of about 107,000 square meters in production at the start of the fourth quarter. And about 27,000 square meters have ended. Among other things, a larger reconstruction and construction of Hudiksvalls Hospital. On the market as a whole, the need for social and special facilities is still relatively large. Public orderers are active in developing new projects. In the business area, four new entrepreneurial contracts have been signed as of the fourth quarter. All of them are social housing. For the fourth quarter, revenues were announced at 410 million. This is somewhat lower than the corresponding period last year. Rörelseresultatet för det fjärde kvartalet är negativt med minus 25 miljoner och för helåret då negativt 87 miljoner. Båda de siffrorna är i paritet med föregående år. En stor del av det negativa resultatet för både kvartalet och helåret är hänföljt till nedskrivningar i ett specifikt projekt på grund av såväl ökade omkostnader som förseningskostnader. Projektet kommer att avslutas under första kvartalet 2025. Affärsområdet har även belastats av omstruktureringskostnader. It is a joy with a strong order entry consisting of projects with healthy margins and in general reasonable conditions, which lays a stable foundation for the coming year. During the quarter, the order entry rose to 420 million and accumulated to a little stiff 1.4 billion. It is an increase of 25% compared to last year. By 2025, the business sector will take a stock of 1.4 billion in total. If we then move on to logistics and industry, we still had 360,000 square meters in production by the end of the year. No projects were left over during the fourth quarter. But immediately after the new year, we have completed the new logistics center in Hallsberg as well as the construction of a home tech facility in Borås. A total of about 90,000 square meters. Under the end of the year, we have seen a certain recovery on the logistics market, which resulted in two new agreements and several ongoing discussions for LC in early 2025. Even in Norway, there are interesting business opportunities that have opened up, not least thanks to our ongoing development project in AIDS violence for ALS-L. It is Norway's largest logistics facility, built in one stage, and both the size and the fact that we install extensive solar cells and mountain heating solutions has raised great interest in the industry. Income for the quarter goes up to 457 million. It is an increase of almost 40% compared to last year. And for the whole year, the income rose to 1.9 billion, a little bit. An increase of 14%. The progress on Stegra has gradually increased during the autumn, and this is a big explanation for the difference. The turnover for the quarter is negative with 24 million, compared with 10 million positive for 2023. During the fourth quarter, the end regulation has taken place after the larger competition with a market entrepreneur that took place earlier this year, an actor who was hired in two of our projects. For the whole year, the business area has a positive result of SEK 33 million, compared to negative SEK 55 million last year. After a year, when the only order entry is made up of more sales in previous projects, the order entry for the whole year stops at just under SEK 400 million. The business area's order stock is at about SEK 2 billion at the end of the year, but has been filled in at the beginning of 2025. Intensive marketing work is underway to secure new businesses in the future. If we go over and sum up the total order volume for the fourth quarter and the order volume at the end of the year, we see that the order volume for the quarter is summed up to 353 million, which includes a total order volume of about 3.8 billion. At the beginning of the year, it was just over 6 billion. Judging from how the market has developed over the past few years, the volumes we see ahead are also lower. And as we have said before, we have adapted the organization according to the needs of the company today and in the foreseeable future. For both the fourth quarter and the year as a whole, we see a lower order volume compared to last year. However, the increase in the order volume for Q4 2023 makes it difficult to compare with the previous year. Vår ambition har varit att bygga en trygg orderstock för framtiden där vi har prioriterat framtida lönsamhet framför omsättning. Bostadsmarknaden har varit svag under hela året och även på logistik- och industrimarknaden har det varit begränsad aktivitet. För logistik och industri har vi dock sett en svängning under slutet av året som gör att vi ser positivt på utvecklingen in i 2025. Kommersiellt har det haft en stabil orderingång under hela året. The share of business areas and housing has continued to decrease. Logistics and industry stand for more than half. If we look at what it looks like from our financial goals, we see, despite the results, a strong position with a solidity of 31%. It is well above our target of 25%. This gives us stability in the future. And with that said, Jonas summarizes the quarter and the way forward.

Yes, thank you Lars. Yes, as we have described, we have done and we continue to make adjustments to our business and organization after a determined market situation. Where we, even if we see some light spots, think that the challenging situation will remain for a while. We know that the connection cycle will continue and that there are variations between our business areas. And as we have mentioned earlier, we have also worked very hard to be selective in our business experiences under 2024 to ensure a solution in the future. And through that, we have a stable order stock in 2025 and with a project that fits our organization and where we can deliver nice, qualitative end results. By increasingly seeking cooperation with large customers within the supplier's sub-entrepreneurial network, we reduce our risk exposure further. We have taken strategic decisions to cancel our project development within Bostad and strengthen the company's liquidity and balance sheet with a new emission. Kapitaltillskott ska användas till en ökad projektutveckling inom affärsområdet kommersiellt samt logistik och industriområden där vi historiskt och där vi också ser framåt större möjligheter till större vinstmarginaler. Efter omstruktureringen ska vi ytterligare vässa våra koncernbolags erbjudanden och skapa konkurrenskraft genom att prioritera stark lokal närvaro och förstärka specialkompetens hos vår organisation inom sina respektive verksamhetsområden. Vi har minskat såväl kostnadsmassa och skuldsättningen väsentligt under 2024 genom omorganisationer och avyttring av tillgångar. The work on recreating solutions has been the largest imaginable focus and we will continue to work and create value for both companies and for the shareholders in the future. And when I now hand over the baton to Patrik to take the company to the next step, I am convinced that the hard work and the restructuring and changes we have made during 2024 This means that the company is now in a good starting position to turn the development forward. And with that, I thank you for me and us and open up for questions.

During the Q&A session, participants can ask questions by pressing square 5 on their phone. If you want to withdraw your question, press square 6. The next question comes from Jan Irfeldt from Kepler-Chevreux.

Hello, good morning. I have a couple of questions here. And I was thinking about this new emission that you are announcing. How have you come to this sum of 150 million?

It's a balanced assessment of what the company sees for possibilities in investments, but also to be able to strengthen the company both in terms of balance and liquidity, and create conditions for the businesses that are on the table and potentially new businesses.

Have you looked at any particular key figures that you want to take up with this?

Vi har ju våra finansiella mål och vår strategi är framåt för att nå dem och den planen vi nu har lagt och det är utifrån det som bedömningar har gjorts på vilka verktyg vi ska använda för att komma dit.

Okej, och sen tänkte jag höra, ni har gjort nedskrivningar här på 340 miljoner. Is there anything more that can be characterized as extraordinary in what you have done in 2024?

What can I sum up? 2024 has been an incredibly challenging year for us and for the industry in general. It is closely linked to the project we have with us from 2023, which has now also ended during 2024, and where both the final regulations with the orderers and sub-entrepreneurs have been made, which has also resulted. At the same time, we have also been able to write down and take active decisions to clean up the business by selling off supplies, and that has also had results this year. But all in order to create a return to profitability, to focus on our core business and create conditions for 2025.

Okay, but these 340, as you say, for example, these investments in certain projects, does that fit into this sum or how should we interpret it?

Yes, it does.

So this is like a total sum that Ja. Som ni tar fram här då på. Ja. Det som kan prioritiseras som extraordinärt. Och av de här 340, hur mycket belöper på Q4 och hur mycket belöper på de första tre kvartalen? Jag förstår inte frågan. Ja, ni säger att 340 miljoner som har påverkat. Det står under kommentarerna till januari, december. Och då har ni nedskrivningar då på totalt 340 miljoner. Om jag ställer de frågorna, var allt det i fjärde kvartalet eller?

Nej, det var det inte. Det har akkumulerat över året och vi har ju också i tidiga rapporter specifying the effects that have been, respectively. So 340 is a total figure accumulated last year, linked to the result.

Can you just remind us, what have you said earlier then, Q1 to Q3, how big have the declines been then?

Yes, we can return to you, Jan, with the exact figures in each, but we have specified them, as I said, in each part. But it is clear that it is a larger part we take, considering the result in Q4, but we have also taken parts during the year connected to it. So we will return to that.

Yes, please. Otherwise it will be difficult to evaluate the results here. And then I was going to hear about A little distribution between the business areas, can you say something about these 340, how it has fallen between the business areas?

Yes, but it is housing that is the one that has been most affected. But we also have impacts within the other two. But the majority is within the housing sector and it is visible in the results. Then we have individual events that have affected both commercial and logistics industry. If you look at logistics industry, we had than this competition of a land firm on two projects in a critical situation that has affected the result. And if we look commercially, there is one project in the north that we have had problems with and that we have also reported about before, linked to delays and costs.

And can you say anything about the distribution between project and entrepreneurial activities when it comes to Nedskrivningen?

Nedskrivningen är kopplat till entreprenadverksamheten i största del. Sedan har vi specificerat vissa delar kring när vi skriver ner tillgångar. Vi har också tidigare år avyttrat fastigheter och annat som också fått en påverkan. Majoriteten är kopplat till projekt som vi haft med oss in och tagit under So most of it is against entrepreneurial companies.

Okay. With entrepreneurial, you mean not your own developed projects, but it as an assignment to others, right?

Yes, that's what we're talking about. Then we've also naturally had an impact on our own developed projects with cost increases. in them as well, but the main part is on, since we also have the main part of our business and our revenue comes from external entrepreneurs and has increased all the time thanks to the fact that we have also reduced the proportion of project development related to the market. So it is so that entrepreneurs are on the external market and then we have absolutely also had an impact on our own projects during this time.

Okay. Tack så mycket.

Tack. Den nästa frågan kommer från David Flemmig från Nordea. Varsågod.

Tack så mycket. God morgon. Good morning. I was going to follow up on Eloit. I was a bit late in the call, so I don't know if you talked about it in the beginning. But it's Eloit that I signed and then the exclusion of the project development business within Bostad. Can you say something more about that? How much capital do you bind within the project development business in Bostad?

No, we can't go into those details yet, but we have an opinion statement to go on with an actor who has shown interest in our fine portfolio. And based on that, we have entered an LOI to continue working on that part. But we have our project portfolio specified in the report. Now it's the parts that are, so to speak, but we can't leave out such details in this case.

So I assume you haven't started discussing prices yet? No. Have you made any overview of building rights and the like within the portfolio and market-adapted value on building rights?

We do that all the time. Then we have a mix in our portfolio of both building rights that we have acquired, but also a large part is options for future building rights. Men vi anpassar ju, och det ligger ju en del i vår ordinarie verksamhet att titta över och anpassa värdena hela tiden. Men som sagt, det är ju en mix i vår portfölj av förvärvade och framtida optioner.

Yes. Then I'm thinking about the new financial goal of reaching 5%- -"management margin over time". You mention that the challenging situation will remain for one more time.

What do you mean by that comment? The challenge situation will... The point is that we see that it is- positive signals of recovery, but we see that it has moved forward to the end of 2025 at least and into 2026. We also see what is happening on the market with several actors in our industry who have problems, so we still believe that it will go in the right direction, but that it will take time before we are fully back on the market. That's what I'm aiming for in that part. And then we have adapted our business and I assess that we are very well prepared for that. And we have also adapted the organization from how we believe that the market will develop forward. But what is is that we see and I see that it will take some time before we are fully back in the market in total, both within housing and other parts.

Gäller det mer marknaden och volymer på anbud och liknande eller är det Västbygg specifikt?

Nej, jag skulle säga att det är mer generellt marknaden i stort och de signalerna vi ser.

Ja, och om vi backar bandet ett år till Q4-rapporten förra året så pratade ni om att ni You calculated with stabilizing and carefully positive development on marginals. We have seen the opposite during 2024. Should we believe that this trend continues into 2025 so that the market does not turn? And that applies to all segments.

No, I wouldn't say that. We have worked during 2024, both to follow the market and adapt the business according to the latest prognoses that we have received from both Riksbank and other institutes. We have also seen that it has been pushed forward, both the effects of interest cuts and inflation development. And then we have worked intensively all the time to adapt and see what we can do better to manage internal processes and also to reduce the debt in the company. So I would say, and as I conclude in the summary, that the hard work we have done and the adjustments that make the company stand i ett läge där vi har anpassat oss inför 2025. Vi har också avslutat, och håller på att avsluta, många av de utmanande projekten som vi haft under 2023 och 2024. Så vår bedömning är att vi står i ett bra läge, och som jag säger när jag nu lämnar över tackpinnen till Patrik, att vi har skapat en grund för en stabilitet framåt.

What would you say is the most important factor behind avoiding this profitability volatility within the project? I mean, what measures have you taken, purely practically, to avoid this in the future?

Well, as we describe, we have talked about it before, we have brought up a lot of internal processes around the offer. Then we also have, as we describe here now, been selective with which offers we go into and on which margins. We see that it has been an incredibly tough competition and that there has been a lot of volatility in the offers that come in as well. And that means that we have been very careful when we go in and make sure that we have a solution in those projects and can implement them. I absolutely mean that we have a competitive price, but it should be profitable and there should be a prerequisite to implement the project. And there are many parts we have worked with there and that has also been an important part of the work during 2024 to create a stable order stack that we now have with us in 2025.

Hur ser ni på möjligheten att driva orderingång under 2025 under de premisserna? Tittar vi på orderingången här under 2024 så har den varit relativt svag. Ser ni några förändringar där som skulle kunna förbättra era förutsättningar att driva orderingång under de premisserna du nämner eller räknar ni med en fortsatt låg orderingång under 2025?

What we see is that we see positive signals on the market and they are a little different in the different business areas. If we look at commercial, we have had a stable order income throughout the year. If we look at logistics and industry, we see that it has been tough. There have been many projects out there that have not been cancelled, but now things are starting to happen. Then we still believe that it will Det tar lite tid, men vi ser klart mycket bättre förutsättningar för att lämna bra anbud och att skapa fler projekt ute och räkna på. Men det tar lång tid att komma till beslut, märker vi. But the signals are there, but we are carefully positive about the fact that we think it will take a little longer before it's full gas, so to speak. But we only see on logistics, for example, we have linked two projects to us after the change of year and we have worked with them intensively during 2024. And we have also linked commercial after. We still see a positive future, but with a certain caution. And we also see that marketing with the number of EUs available also creates opportunities.

Top. Do you have higher offer margins in what you have won in the end? Or is it more about ensuring that you do not count away and ensure that you have the right organization and the like in place? to avoid these crashes? Or do you have a high revenue margin to raise for miscalculations?

We work with the margins that we work with, but it's about doing a good basic work and a good preparation and being clear about having a strategy for each individual project and make an evaluation of the possibilities and risks that exist in each individual project. It's about to work strategically and take projects that we see have good conditions to be carried out in a good way.

Great, thank you very much.

Thank you. As a reminder, if you want to ask a question, press square five on your phone Det finns inga fler frågor just nu, så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Då vill vi tacka för visat intresse och önska er en fortsatt trevlig dag.