Welcome back to the DNB Carnegie Micro Cap Day. My name is Linus. I cover investment companies here at DNB Carnegie, and I am happy to present the next speaker from Byggmästaren, Deputy CEO, Frida Åkerblom. I will let you start off with your presentation. Thank you. Hello. Byggmästaren is an investment company founded in 2013, and we have been listed at First North since 2014. in 2024, we changed list and are listed on Nasdaq Mid Cap. We have a market cap of approximately SEK 1.5 billion, and our net asset value is around SEK 1.9 billion. We are a quite small company, and we work with a very focused portfolio of six listings, two listed and four unlisted. We work with an active ownership model, and with that also comes that we prefer to be the significant owner. We are usually number one or number two in the cap table. We like buy and build cases. It does not have to be, but we think that is a very good way to create growth and profitability. We have a long investment horizon. We can own companies forever. It does not mean that we actually do, but we are not restricted by any ownership periods. If we look a bit since 2014, we have had an annual net asset value growth of around 13%. The return of the stock has been 14% over the same period. If we look at our portfolio there, you can see that our third biggest asset is cash currently. If you look historically of the white little bars there, you can see that we have had cash along the way and still managed to create this return. We usually do not work with debt in our investment company. Of course, our portfolio company does, but we think that there is a good option value in sitting on cash so we can act fast and provide liquidity to our portfolio companies or if we have new opportunities. If we should look a bit at the portfolio, the top three companies here are our core holdings, and I will get back to those a bit later. If we look at the three bottom ones, we have Infrea and Martin, the CEO of Infrea, will join me later to talk a bit about the upcoming merger with Netel. Then we have Team Olivia that we own together with Procuritas. Procuritas is the main owner, and they are a private equity firm, so they have a limit on their holdings. This is the company that we have been selling off in bits and pieces. in June, we sold the Danish part of the business that will close in Q3 or Q4. So what is left is the Swedish part that does personal service care. We have Fasticon, which is a staffing and recruitment company focused on the real estate market. If we look a bit about our investment strategy and how we invest, we have what we call a 4M filter that we apply on everything that we look at, but also at the holdings that we have. This is then the 4 Ms. We have man, which is the management and the owners and the people leading the company. We are owners and not operational staff, so we really need to have good people that run the companies. That's maybe our most important part. We have moat. We look at what does the company have that protects their margins long term. Is it patents? Is this a niche position? What is it that makes them be durable over time in terms of profitability? Of course, we look at the money. How's the profitability of the company? We do not invest in early stage like venture or such, and we don't invest in turnarounds or companies that make operational losses. We invest in quite as early as they start to earn money and the business model is proven. We like to put in money to invest or grow or buy and build our factories or such. We look at the market. Is this a global market? Is this a growing market that this company can thrive on? We give the points and it needs to be over 15 points for us to qualify. Also, as I said, we look at the holdings that we have. Maybe sometimes the company has a better owner or something else that makes us look at a divestment. We want an IRR of 20%. Our ticket size is around SEK 50 million to SEK 300 million. We like to invest in tranches, maybe come in at SEK 50 million and add on as the company needs the cash. We work, of course, with value creation, what we call the capture, create, and crystallize. Capture is the investment moment. We feel that we capture some value. We work with the create phase, which is the longest one, where we develop the company, we do add-on investments or such. Crystallize is some kind of, it could be a liquidity event. It doesn't need an exit, but it could be an IPO, or it could be that the company starts to generate dividends, or it's something that really proves to the market that it exists. We put our portfolio through this, and we have then found our three core holdings. We divested GT Media, which is the Mitt i magazines to Bonnier News earlier this year. We try to find different solutions or situations in the other ones, and Infrea and Netel is one that we find very interesting and is a great fan of that. If we look like why do we like these three companies that are our core holdings? Safe Life is a buy and build, and they are a distributor of defibrillators. We invested 2020. They had done two acquisitions, and now they have done 51 acquisitions. Last year, we were the main owner until last year when we sold to Bridgepoint because Safe Life has been growing rapidly, and they outgrown us. So this is kind of a dream scenario for us that they are needing more and a bigger partner, and we could continue to tag along, and Bridgepoint is now driving and putting more cash, and it is doing an exceptional job. Then we have DP Patterning, much smaller. I will show you a bit what they do, but they have had an incredible growth. When we invested, they had a turnover of SEK 12 million, and now the first half of the year, it is SEK 122 million. So they were just at the verge of profitability, and we saw the market, the customers, and then they came along. Green Landscaping, listed. We have been with them for many years, since 2018. They have had a really tough year, and it is of course very frustrating. But our CEO, Tomas, is now the chairman of the board, and we are now changing the CEO and really focusing on improving both growth and margins and cash flows. DP Patterning. Now is the movie working? Let us see. They are doing flexible PCBs. Instead of usually this is done with a chemical process, which is not very good for the environment and quite a hassle. So this is an invention in Norrköping from a person there that is also the CEO of the company. So instead of the chemical etching, they are "Fräser," "Torr," dry phased, so it is like a "Svarv." It is very impressive, and they have gone from 17 to 120 million. So they have really the growing market with them, and they had strong development on their customer side. So this is really one of our latest proud investments. Our focus going forward is our core investments and our cash. So that is also 76% our net assets. So we feel that this is where we should put our focus. Of course, DP Patterning, supporting them in their growth journey. Green Landscaping, we have addressed and are doing some changes there. We are looking for a fourth core holding, which is really at our top list, and then streamline the portfolio with our other holdings. I think with that, I will also invite Martin, who is the CEO of Infrea that is going to merge with Netel. Thank you. Excellent opportunity. Thank you, Frida. Yes, as you said, not a core holding for Byggmästaren, but we have been very well united in the process leading up to this discussion with Netel, and that is that one had to be slightly bigger than both Infrea and Netel has been on our own, both from an industrial point of view, but also from a sort of share point of view. We are too small, simply. Infrea's core business is paving and infrastructure work in Sweden, while Netel comes with also telecom and the power side, which is growing a lot right now. Netel is active also in Germany and Norway on top of Sweden. So the rationale for the merger is simply to get the size that we believe both companies need and to address and invest in this very interesting segment. From a financial point of view, of course, we increased the diversification of the total group with partly the segments that we operate in, but also diversification in terms of what kind of contracts do we have, service contract, frame agreements, and pure projects. It will become quite a good balanced portfolio, we believe. So Frida, is it the green button? Yes. Going into this, we discussed because, of course, we need to get to know each other, really, and we discussed what are the trends that drive our industries, and we were very much united in those. It's a lot about the maintenance of roads and the train transportation system. It is the power sector that has a big need, and it's the digitalization. For Netel, who was previously a fiber installation company, digitalization in 2026 is also about fiber, but it's also about AI and data centers, et cetera. We, of course, see the big in the local infrastructure the damage that a storm or this heavy rain can cause is tremendous. Then, of course, NATO and the military build-up and the resilience in the society. These are really megatrends that will be here for a long time. We believe we have the knowledge in these areas. We have fantastic large companies. Below these big companies, there are thousands of local companies, which is really our everyday relation. We believe a little bit more unique maybe is that we, in the intersection between these areas, we believe there is business opportunities to be extracted for us. With this merge, we have a good geographical reach. We reach through 60 offices. We reach a lot of these customers geographically and, of course, 1,200 employees, so that will be a fantastic opportunity, we believe. What is now being done is that there is a directed share issue being released as of Thursday in Netel because while Infrea had a little bit of a catch-up in profitability the last years, Netel has had some problems with their balance sheet. We sold a big segment, so we are basically debt-free in Infrea in combination with Netel's balance sheets, but good profitability, I would say. This match is quite good, we believe, but we need to reduce the overall debt. So they are doing this share issue now, in the coming week, and then we hope to lower the debt with some SEK 200 million for the total company. The merge will be formally done first week November, is the plan currently. Very exciting. Was this my last slide? Yes, it was. Yes. Can I just ask Yeah while you are up here, you have talked about some SEK 50 million, I think, in synergies. Could you talk a bit about where you see those coming from and sort of what the Yes. I often get the question, are we forward-leaning or defensive? I think we could talk about a lot of the revenue synergies that I just mentioned a few. Yeah. I think the power segment and infrastructure, very interesting, for instance. But when we say about 50 Yeah it is really about cost. Right. Part of the cost is simply we have double offices, we have group functions, we are two listed companies. Yeah of the 50, and the other is that my assessment is that both companies have opportunities in procurement. Yeah. Because none of us have really done the full homework there. You also talked about some of these megatrends, but what do you feel about sort of the near-term demand environment? I just came from another lunch. I think it is slow but in the right direction. Yeah. The megatrends, I don't think we are up on the top levels. We are in the trajectory of growth, really. In more infrastructure services, we would like a little bit more housing to be built and so on. Right That takes some of the competitors. It is a lot of people and company that works in that sector. But otherwise, I think it is steadily growing. Yeah. Thank you very much. Thank you. Thank you, Martin. To just summarize why we think Byggmästaren is a great investment opportunity, you get great access to unlisted shares. That is not possible to invest in in other ways. We are also traded at a discount currently, so you get to invest at a discount. We have a strong financial capability, so we are looking to invest. We are active owners, so we really take responsibility, and we have a structured and proven way of investing and managing our companies, and we believe we have very strong core holdings with great possibilities for growth. Thank you very much. I guess I will start with a question on, you mentioned unique access to unlisted growth. Should we take that as a hint towards what kind of companies you are looking for when it comes to listed versus unlisted, or? We look at both areas, and it's a lot of listed companies in the Nasdaq Stockholm exchange. But the probability of it being an unlisted is probably higher. Yeah But we look at both. When it comes to, you talk a lot about this finding a fourth core holding. What's the main bottleneck, do you think? I think it is our 4M filter. I think we have quite strict criteria, and we are quite disciplined in the way we invest, which means that we wait a long time until we find, and we also need to be a relevant owner to them so we can bring something to the Yeah table. It needs to be also mutual. But in this 4M, where do you typically see them not being up to your standards? I think it is a combination of Yeah things. It is not one thing that we always lack, but I think it is finding the timing. Yeah. Also with the size of, we want to be a significant owner and own a significant part of the company in terms with the size of the investment. It means that they need to be a bit early stage, but not venture early. Yeah. I think finding the right early stage. Yeah. I think that is really And maybe shifting then to your largest listed holding, Green Landscaping. You mentioned it, but could you maybe double-click a bit on what it is that you are doing from a sort of governance perspective currently and? We are owners here and not. There is we are owners, and then there is a board. Of course. And then there is a management. So as owners, we have done the changes to the board that we think it fits very well. And then Clein, which is now the current CEO until they find a new one, was one very big contribution to the board. Yeah. Tomas is now the chair. I think from an owner's perspective, that's what we do. Then, they have a great governance from the board and so on. We believe that, we have strong faith in this- Yeah holding. I think Safe Life is a super interesting investment. Remind us how big a portion of your portfolio is that now, roughly? It's our biggest. Yeah. It's 600, so it's about 30%. So it's a big portion still. Yeah. We have divested, we did an extra share dividend due to the liquidity we got in from them. We got SEK 525 last year in cash. Safelife is very much a buy and build story, but how much of that growth is organic? Now they've had some, it slowed down a bit, but it's still, that's more structural. The market is still growing, they had some issues. But we are expecting up towards 10% organic growth. But depending on the market and so on. But the market is growing. I guess a large portion of the value driver in Safe Life is moving from these AED sales towards more of a, say, subscription model and recurring revenues. Mm-hmm. Yes. How much of that work have you done? How much is left to do? The majority is left to do. Yeah. They have just started on this, introducing the renting model. Yeah. We haven't said any specific how much part, but it's in the beginning. They have just started with this one. It will come more. When I look at the margin improvements that you've done recently, I guess some of it comes from acquisitions. How much of it has been actually changing the revenue model, and how much is buying companies that already have a recurring revenue scheme? Both of course, and also you have the, in terms of the buying power, they have been buying a lot. Now they have started to consolidate, put in the central functions, purchasing, and doing those type of purchasing together. It is really a mix of different things here driving the profitability. That journey has also started. They had invested a lot in the headquarters and in building this as not just a group of companies, but really Yeah as one company and with ERP. It is really an investing year to be able to get all the renting to Right improve margins going forward. And if I am not mistaken, it was right after Bridgepoint came in that they did their first investment over in Asia. Was that sort of what you meant by them outgrowing you guys? Or you needed No, I think of the Asia and Bridgepoint, I don't think it is anything that you should put together. Yeah. But I think, we have a limited balance sheet, and Bridgepoint is of course, and they are very professional. So, we needed to put in more cash in order to continue this growth, and we saw that there is still a lot of land grab opportunity to buy and build, and speed is of essence. So then we really needed a partner, and I think we really found a great one in Bridgepoint. On that topic, sort of the M&A growth runway, how much of it is going into new geographies? How many companies do you need to buy in a certain geography to sort of- Depending on the size of the company. I cannot say what- Yeah, okay. number we need to buy. They have a big pipeline. Yeah. Moving maybe to DP Patterning is another interesting one. Yeah. It's scaling very rapidly right now. You're opening a new factory, I think you said, in a couple of weeks? Yes. It's open, but we have the- Right What is it? The celebration. Yeah. The new factory. How much more production capacity does that mean? You could probably be there up until billion SEK in turnover because it is the space of the factory. Then we build more machines. Yeah. We have significant capacity now. The capacity was a bit of a struggle last year, now we are- Is it fair to say that has sort of been the limiting factor in growth, or? Last year, yes. Yeah. But this year, no. Yeah. There is one large customer, I believe, that is driving a lot of the growth. Yes. You are not telling us who this customer is. No But maybe you could talk about what type of customer this is. What kind of growth drivers are? It's within communication. It's an American customer, and I think that's about what we're allowed to say. Not due to the customer, I should say. Yeah. That they're very This sort of advantage, you talked about the environmental advantage There's also a cost element. Yes to this. It is better for the environment, and it is cheaper, and that is usually a very powerful combination. But only being better for the environment is not usually enough to get people to buy a product. Yeah. Not on a big scale. What does the customer pipeline look like currently? Now we are doing. We have added, it is not only scaling the factory, it is also scaling the organization. So now we have a lot of more people in place, so we really see. We had a board meeting there on Friday, and really see that the pipeline is growing rapidly, and we have a lot of test pilots with new customers and with good interest. Yeah We feel. It is a long, if you change some of the flexible PCBs and something, it is a process. They do not change it every week. So it is a long sales process, but we Right. Are you working directly with the customer? Or are you working with distributors, or how does that Not distributors as of now. Yeah. Directly with the producing company, or it could be a factory or such. Yeah. We do not work with distributors now, but might do in the future. Okay. In terms of your overall philosophy for how you do these kinds of investments, should we think about DP Patterning as sort of being an IPO candidate for some time way off in the future? Or would you like to hold on to it for as long as it is possible? I think it is too early to say. Yeah. We don't exclude any options. It depends on where the company's going and what is best for the company and to create most value, I think. That's what we try to, we try to create value and evaluate. We're not restricted in anything that we need to do an IPO or we don't need or so. Yeah. We evaluate what's best for the company. What do you think is the main sort of risk to DP Patterning becoming that success story? Of course, now it's the customer concentration. It's our short term biggest risk. But even though we don't have that many new customer, we see that the product is working, it's profitable. We see the interest from the market, so we believe that that would be very tough, of course, in short term- but we feel that we will get new customers sooner or later. And just on your capital allocation framework, you pay a dividend. Is this supposed to be funded through just cash flows from the companies, or do you need exits to do dividends? Or what's sort of the- Cash has never really been an issue for us. No. We, of course, monitor our cash carefully. We have some dividends from our portfolio company, Infrea. It's not much, but a little, and Fasticon is also. So there is a mix usually from exits, dividends, and such. Yeah. I think we're running out of time, but thank you very much for today. Thank you.