Welcome to the Bergman & Beving Q1 2025 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the question-and-answer session, participants are able to ask questions by pressing the pound key 5 on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now, I will hand the conference over to Magnus Söderlind [CEO] (Bergman & Beving) and Peter Schön [CFO] (Bergman & Beving). Please go ahead. Good morning, everyone. This is Magnus Söderlind, and welcome to our financial report for the first quarter presentation. Together with me on this call, I also have our CFO, Peter Schön. We will, as always, have a Q&A session at the end. You also have the opportunity to submit some live questions, which we will address after the presentation. On an aggregated level, organically, we had a small decline in the quarter, reflecting the market conditions. Despite this, we increased EBITDA by 9%, marking 22 consecutive quarters of improved profits. We also strengthened the EBITDA margin to 9.9%, compared with 9.5% in the previous Q1 quarter. That, together with the increased EBITDA, has raised the profitable working capital ratio by 5%. We are now at 32% and on track to reach the 45% target for the next fiscal year. Earnings per share, adjusted for the goodwill we took last quarter, improved to SEK 8.3 compared with SEK 7.4, before dilution. There is variation across the different subsegments, but on an aggregated level, we unfortunately do not see any signs that either the construction or industrial sector is picking up. It remains more of a steady-state situation. As we have communicated before, we are not heavily exposed to new housing construction. There is some pickup in that sector, but it does not significantly affect the underlying markets our companies operate in. We have continued to acquire companies in line with our acquisition strategy and targets. So far this year, we have made four acquisitions — three during Q1 and one just yesterday. Together, these four acquisitions represent annual sales of SEK 300 million. We see no reason why we should not be able to deliver on our target of SEK 50–80 million in annual earnings from acquisition volumes. We are well on track to achieve that. They are developing systems in which the software component plays an important role, providing measurement and documentation for the transportation of liquids — typically those that are fire- or explosion-sensitive. They have built an excellent system and established a strong position in the Finnish market, with major chemical companies as their main customer base. They are well above that range. Raintide is a leading manufacturer of PVC-laminated steel products used in roofing applications such as guttering and similar installations. These are typically applied in large commercial buildings, warehouses, and stadiums — for example, Raintide has supplied products to the Wimbledon Stadium. This business primarily serves the large commercial building segment and has integrated very well into the group so far. The pipeline for this company also looks very promising. As mentioned earlier, we encourage many of our highly profitable companies to pursue growth both organically and through add-on acquisitions. One example is our group company Gaden, which last year acquired Sandberg and has now acquired Mann & Co. Together, they now hold a leading position across Sweden in supplying hoses and couplings for fluid handling applications — a very niche market with solid profitability. This acquisition further strengthens Gaden’s market position in Sweden. These customers include companies in the food and pharmaceutical industries, where heat exchangers are typically installed in production or warehouse areas. Each unit is tailor-made for its specific application. This is a highly specialized company with a strong position in the UK market for customized heat exchangers. This period mostly covers the COVID era and the challenging market conditions we have faced in the Nordics and other European countries over the past three years. Despite that, we have continued to increase profits quarter by quarter, and that remains our ambition going forward. We see no reason why we should not be able to continue this positive trajectory going forward—both through acquisitions that will enhance margins and absolute EBITDA, and over time through organic growth in both profit and profit margin. That, I would say, is the main explanation when looking at the group’s organic development. We set a target to reach 75% owned products in this fiscal year, and we have already achieved that in Q1. This has been a key factor in improving our gross margin over time. Even though the EBITDA margin is above 15%, some other companies have a gross margin below the group average, which has affected the overall gross margin negatively. However, at the EBITDA level, we had a positive impact. As communicated earlier, we do not expect a significant increase in the gross margin from current levels going forward; instead, we anticipate continued improvement in the EBITDA margin. As stated in the report, we are now divesting Skydda Nordic, which will result in a loss of SEK 45 million. This will make it challenging to reach SEK 500 million in EBITDA during this fiscal year and will also affect our EBITDA margin targets. We now expect to achieve those targets, but a few quarters later than the end of this fiscal year. Thank you, Magnus. If we look at earnings per share, it amounted to SEK 2.10 in the quarter — an improvement compared with last year, but a slight decrease from Q4, which was SEK 2.30. The decline was mainly due to slightly higher finance costs. If we look at cash flow, it was strong — seasonally high for this quarter, as expected. It was slightly below last year, mainly due to a more positive impact from reduced working capital in the prior year. As mentioned earlier, the pace of inventory reduction has slowed, which is also visible in the rolling 12-month cash flow trend, showing a slight decline. We have already achieved the easier inventory reductions, but further improvements will continue at a slower pace. In the quarter, it increased from SEK 1.278 billion to SEK 1.412 billion, mainly acquisition-driven, with SEK 260 million added during the quarter — quite an active acquisition period. Net debt to EBITDA is now at 2.5, which we consider a comfortable level. Looking at the three divisions, the Core Solutions division had a very strong quarter. ESSVE, the largest company in this division, implemented three new major customers in the Nordics. Under these agreements — which follow market standards — we essentially take back competitors’ volumes from the shelves and replace them with ESSVE products. This has had a positive impact on ESSVE’s top line. That will also support the division’s margin going forward, even though it already showed a solid margin increase this quarter — 11.9% compared with 11.6%. Underlying performance is even stronger if we exclude the take-back volumes from ESSVE. It also had a positive impact on the rolling 12-month revenue, as shown on the left side of the chart. As mentioned earlier, Hosey Coils will be part of the Core Solutions division and will continue to contribute positively to its strong development going forward. We expect a positive effect over time on our PPE product companies now that Skydda is part of the Ahlsell Group. As communicated earlier, Skydda also has an international operation, which will remain within the group. This serves as an important channel for our PPE product companies outside the Nordics, and they will continue to act as a wholesaler for our product companies in this international context. We do not yet have a forecast for the exact earnout level, but we expect to receive at least a portion of it. As communicated last quarter, we recorded a goodwill write-down of SEK 270 million and anticipated restructuring costs of roughly SEK 70 million. One quarter later, we can now confirm that figure, and it has impacted this quarter’s results. OnTech is essentially a new platform within this division. We have also made some add-on acquisitions to the SIS Group, the signage group, with the most recent being Collinder. I expect this division to be more active in the acquisition space going forward to further support its development. The EBITDA margin was relatively flat at 8.1% this quarter, compared with 8.2% in the previous quarter. They are also experiencing some challenges with general demand across their markets. We also have Polartime, which sells mobile heaters primarily to rental companies that supply construction sites. When the underlying market is weak, rental companies typically reduce their purchases, which has negatively affected Polartime. However, we are now seeing some positive indications that the market is starting to pick up, and we expect a better performance from this company going forward. I see no reason why they should not continue to perform at a very good level in the coming quarters. I also mentioned the Gaden Group, which acquired Sunbay as an add-on some quarters ago and has now acquired Mann & Co. in MADIS. This will serve as a strong add-on acquisition for Gaden going forward. One positive aspect is that the EBITDA margin increased to 10.5% compared with 10.1%, making this the division with the highest margin. With a few good acquisitions going forward, I see no reason why this margin should not continue to improve. I am now leaning toward the view that we will need to wait at least until year-end. Hopefully, at the beginning of next year, we will start to see some market recovery — but let’s see. The coming months will be very interesting. Looking at Q1, the last month of the quarter was actually the best and strongest one. Still, I don’t see that as a clear sign of a market pickup. It will be very interesting to see how the market develops in the coming months. We will continue to acquire highly profitable B2B companies with strong positions in growing niche markets. Given the current conditions, we are focusing on a few specific themes across the group. We continue to work on capital efficiency, particularly stock reduction. We are also maintaining our focus on improving inventory turnover (ITO) across many companies, which will generate additional cash over time. We are trying to maintain a balance, ensuring that we can capitalize on an improved economic situation when it comes. We are careful not to take actions now that would undermine our companies’ ability to leverage opportunities when the market picks up. We have been able to increase profit, margin, and earnings per share despite facing another quarter of challenging market conditions. We have achieved these results through effective work with the companies in our portfolio, combined with the successful completion of acquisitions that bring strong margins and opportunities for profit expansion. If you wish to ask a question, please press the pound key 5 on your telephone keypad to enter the queue. To withdraw your question, please press the pound key 6. The next question comes from Zeno Engdalen-Ricciuti from Handelsbanken. Please go ahead. Yes, good morning, and thanks for taking our questions. Starting with the Industrial Equipment segment — you mentioned that performance varies between companies. While we might not see an uptick in the near term, have you received any signals that would give you confidence that we are mostly bottoming out, or an indication of when that might happen within that segment? That’s a very good question. From what I see today, I would say the market has leveled out. It’s still uncertain what the outcome will be of the ongoing discussions between Trump and the EU regarding import taxes and the potential effects that could have on the underlying economy. Understood. Moving on to Core Solutions — could you elaborate a bit on the underlying margin if we adjust for the take-back volumes in ESSVE? How material was that impact, given that you still reported a year-over-year margin improvement? The underlying margins seem to be quite strong. Yes, we haven’t communicated the exact figures, but the take-back volumes represent a few million SEK, both in Q4 and Q1. For ESSVE, it’s not a double-digit impact on the gross margin, but there is a single-digit effect on the ESSVE margin from these take-backs. Understood. You mentioned in the report that your product companies now have better opportunities to increase their volumes following the divestment of Skydda Nordic. Could you elaborate a bit on how quickly or easily your companies can realize those volume increases after the divestment? Sorry, I didn’t catch that. Could you please repeat the question? Opportunities to increase volumes now that Skydda Nordic has been divested — could you give a bit more nuance on that? Yes, there are several effects we expect to see. One is that we now have internal champions within the Skydda Nordic organization under Ahlsell. We have had very good cooperation between Skydda Nordic and our product companies over time, and this will help us within the Ahlsell system to promote and expand our product companies’ presence. It will now be much easier for our products to reach Alcel’s outlets, as many of our product companies are now part of their central warehousing structure. This will support further growth of our product companies within the Ahlsell system. Once again, I wouldn’t expect an immediate effect, but over time, I’m confident this will be beneficial for our PPE product companies. Yes, very clear. Just a final question from me regarding inventories — you’ve already reduced them quite a lot. When you mentioned that there are still a few companies where inventory levels need to be addressed, what is making it difficult for those companies? Is it something related to their business model or culture, or does it vary between companies? The conditions for our companies when it comes to reducing stock vary quite a lot. Some companies source products from Asia, where long delivery times typically mean larger order batches compared with those sourcing locally or within Europe. That, of course, affects their ability to reduce inventory. Very, very clear. Thank you. I'll get back in line. Thank you. The next question comes from Emanuel Jansen from Danske Bank. Please go ahead. Good morning, Magnus and Peter. I hope you can hear me. Good morning. I have a couple of questions from my side as well. Good morning. You mentioned that you’re seeing some stabilization in demand. Could you perhaps provide more color on which specific industries or customer segments showed improved demand during the final month of the Q1 quarter? I think that question needs to be answered from a few different angles. Starting with the geographical perspective — Finland has been our weakest market for several quarters, especially within the construction sector. However, we are now seeing some signs that the market there has leveled out and is starting to pick up, particularly in construction. For example, in the automotive segment — where we are also active — we currently do not see any pickup at all. In fact, that segment appears somewhat weaker compared with previous quarters. In some other industrial markets, we are seeing modest signs of improvement, but it really varies depending on the specific segment. I see. Perfect, Magnus. That’s very clear. Could you perhaps share how large your exposure is to the automotive industry? Oh, it’s very limited. I don’t have the exact figure, but I’d estimate around 1% or 2%. Yeah, okay, perfect. That’s very clear. Moving forward, with the take-back effects now complete in SV and other areas, do you think that, as the market stabilizes, your top-line organic sales growth will improve over the next three to six months? As I mentioned on the first or second slide, I currently don’t expect to see an organic pickup until year-end. For this quarter and the next, I don’t anticipate any organic top-line growth. Given that, I assume there are some positive effects on the top line but negative effects on profits. Do you think that organic sales growth could accelerate further into the next quarter? If you look at our 22 consecutive quarters of increased profit — and at the latest quarter, where we’ve faced tougher markets — profit growth has been largely acquisition-driven. I expect acquisitions to remain an important driver for us in the coming quarter as well, helping us expand EBITDA. Perfect. That’s very clear. Just one last question from my side — you mentioned that the Swedish construction industry is showing some signs of improvement. I know it’s too early to say, but do you think that’s partly driven by the RUT deduction we’ve seen in Sweden? We’ve seen some positive effects from the RUT deduction, but not to the level we expected. The general view in Sweden was that with those tax reductions under RUT, lower taxes overall, and declining interest rates, consumers would start to become more active and help drive the recovery of the broader economy. Got it. Potentially, we could see some increased effect from that going forward, then. Yeah. Great, Magnus. Thank you for taking my questions. That’s all from me for now. Thank you. Good, I think that. As a reminder, if you wish to ask a question, please press the pound key 5 on your telephone keypad. Yeah, I think that was the last of the live questions. We also have some written questions. The first one is whether we expect an increase in EBITDA quarter over quarter, even though we’ve divested Skydda Nordic. Magnus, would you like to comment on that? Yeah. We’ll have the effect of this divestment from this quarter onward. We aim to compensate for that, but it’s too early to say. We have the ambition, but it will be a challenge. If we will be able to materialize that, that is too early to say at this point in time. Good. The next question is whether we have any numbers on how employment in the industrial and construction sectors developed during the quarter. No, we don’t have those figures yet. The latest data published relates to the first quarter. We haven’t received the second-quarter numbers yet, but hopefully we’ll have them in August or September. Another question is whether we should expect the M&A pace to pick up after the Skydda Nordic proceeds come in, or if that’s unrelated since the balance sheet isn’t a bottleneck. Yeah. We’re very cautious about the quality of the companies we acquire. We don’t want to make acquisitions that aren’t a good long-term fit for the group. That’s also related to the fact that we’ve expanded our acquisition capacity. We’ve made four acquisitions so far this year, which is a higher pace than in previous fiscal years. We have a strong pipeline, but it’s always difficult to forecast when those opportunities will materialize. Good. The next question was regarding the $70 million in restructuring costs — assuming they’ll be taken in the second quarter. The main portion will indeed be taken in Q2. Thank you very much. Thank you.