Good afternoon, and welcome back to the DNB Carnegie Micro Cap Day. With not further ado, we now have ITAB Group with us, and Björn Borgman, Andreas Helmersson, and Mats Karlqvist, and the floor is yours. Thank you very much. Good afternoon. As we said, my name is Björn Borgman. I am the new CEO of ITAB since May, so I have four months in the role. Before that, I was the CEO of HL Display, which is a very similar business to ITAB, owned by Ratos. I spent 11 years there, these last six as a CEO. Probably the eight last years of consecutive profit growth and the 13 add-on acquisitions were things I did with HL Display, with that team, that got the attention of the ITAB board to pick me for this role. Today, focus is solemnly on ITAB. Just a little bit of checking the room. Who knows a lot about ITAB? Hands up. Who knows nothing about ITAB? Hands up. A little bit. Okay, we will try to calibrate this a little bit in that direction. ITAB, the leading European retail solution provider, helping retailers create better shopping experience, operate more efficiently, and grow profitability. What does this really mean? I am going to try to explain this in a little bit more basic way. Before that, looking at the ITAB Group, it is a group built by acquisitions. There are still a number of We will see if we get this one to work. There we go. ITAB Group, it is a group that is built partly by acquisitions, a lot of acquisitions on the ITAB side over many years. Then a year and a half ago, a real platform acquisition of HMY, doubling the size of this business to be a SEK 13 billion company with a little bit above 6% EBITDA. That is the scale of the group today. Looking at this in a little bit more basic terms, what do we actually do as a business? Not immediate. Good. Retail interior, what does this mean? It means that we are building stores for retailers. A lot of it has to do with getting shelving structures, fruit and vegetable, bakery if you are in grocery. A lot of that sits in the retail interior part. A large part of the work done now and going forward happens with how do we expand this footprint? We have a position of strength in retail tech, which for us has to do with the checkout arena and focus on loss prevention. A lot of conventional checkout, self-checkouts, and gate systems to manage how customers shop in the store in a low labor cost way and to avoid loss in the store. A little bit of retail lighting business, and then in the other direction, we stretch into solution design. How do we help retailers design the concept and the solution and their stores before it goes into an ITAB offer for how to build this from an interior perspective and add retail tech into it? As you expand this, you get more and more share of wallet with our customers. What our customers really want, which is really interesting, is that they want fewer suppliers. To be the largest player in Europe is really important as our customers look to really consolidate their supplier base. Here we expand in both directions, and then we underpin this with something that looks quite small, but it is really important here, retail services. Because when you have the position of ITAB and the scale, you can work with consolidation services, because as retailers want to have fewer suppliers and an easier way to build stores, someone who consolidates the offer for them and builds the store for them and puts their sub-suppliers under them is something that is quite attractive and that they are really looking for. That is linked to what happens in the end of a store. You build the store, the store sits there for 6 - 10 years, then you rebuild the store. As you rebuild the store, you want to reuse and recycle as much of the store as possible to come back into store. To be able to do that, you need to work with the company who really consolidated this to begin with. If you have strength here, and especially on the retail tech side, which allows you to have a service organization up and running, to actually strategically expand down here is something that is really interesting as this industry consolidates. Now we have spoken a little bit about retail in general, but who are these retailers and what do we do? The majority of the ITAB business sits here, grocery, 50%. Actually, if I would say and expand is to talk about near grocery. So grocery, a little bit of drugstores and pharmacies, a little bit of do it yourself, and then you have Circle K and the likes of service sector down to the right. Two-thirds of our business goes and is linked to grocery retail or near grocery, as we call it. These are businesses that very clearly follows the GDP development in the market. It is a quite stable customer base, and these are customers who are quite stable and who grow broadly in line with GDP. That is a little bit of introduction to what is ITAB, what do we do, and who are our customers. After that fly-in, I am going to leave for our CFO, Andreas Helmersson, to take us through a little bit of a financial overview, and then I come back and talk a little bit about being four months into this job, what are the reflections, and what are the things I am really looking forward to as we move forward on the ITAB journey. Andreas, take it away. Thanks, Björn. I have been the CFO at ITAB Group since around a year, but I have actually been with ITAB since 2020, and that was a point in time which really triggered a new direction for ITAB as a group. Before, ITAB had grown actively through acquisitions. Previously to 2014 as well, 15 years of acquisition-driven growth. You can see profitability was quite high and net debt was also quite high. In 2018, this changed, and it was partially driven by some strategic initiatives by ITAB, but majority of that was a shift in the market. We could see a market shift going from new stores being the main driver of growth for our customers into the square meter for each store becoming more important. They invested more in each square meter, but they did not really grow 100 stores each year, and it was less predictable to be ITAB and the likes of ITAB. We had to stay really close to ITAB, to our customers, and listen to their needs to take an active role into making them more cost-efficient and making the stores more attractive instead of rolling out new stores. This was a strategic shift, and it happened a point in time where ITAB had quite high debt. We spent, since I came in 2020 - 2024, to reshape this and gradually build up profitability again, up to north of 8% at one point, and then pay down our debt. Following 2024, in 2025, ITAB was once again in a position to start thinking about acquisitions. We had the opportunity to acquire HMY, which was more of a transformational acquisition. It was one of those things you do not very often, but we had the opportunity to do that in 2025. Overnight, ITAB Group became twice as big. The acquisition was built on both strategic attractiveness and financial attractiveness, underpinned by operational cost synergies from procurement operations and cost efficiency, fixed cost mainly, but also on commercial logic, as HMY had very little retail tech sales in their portfolio, and ITAB was in a position of strength there. However, profitability also went from the 8% I talked about down to 6%, because Legacy HMY had focused on growth from a private equity ownership in the recent years. ITAB had grown, as you saw, with a large focus on profitability. These are one thing that me and Björn and others in ITAB Group are thinking a lot about now. How do we not only execute on the synergies that the acquisition was built upon, but also how do we get the profitability mindset across the group and learn from the One ITAB journey? Looking into Q2, we can get a sense for where we are. We have spent majority of 2025 and the first half of 2026 to execute on the first waves of synergies. But we also spent those time to really execute or to create the common view on the future across Legacy ITAB and Legacy HMY. It is not that type of acquisition where you integrate very quickly and then just keep running as normal, because you need to get to know each other, you need to build a stable ground with this new acquisition. That's what we spent 18 months doing. From a synergy execution perspective, we are halfway into that. We promised around SEK 300 million in synergies going across the four levers as I introduced, and we're sort of halfway into that. You cannot see the full synergies at bottom line because it's been two years with high interest rates, with some uncertainty in the market. This year has been driven by the Middle East crisis, where we have some exposure through our business in the Middle East and Turkey. It's quite small, but we can see influence in the near area, and we can see some freight costs going up and electricity costs going up and gas prices going up. There is some delay in adjusting that from a business perspective. But we believe we are sort of halfway into that. We have spent the last six months to really execute or build the plans for the next wave of the synergies. In addition to reaching the synergies and becoming more profitable together with HMY, we have focused a lot on capital efficiency. On the right-hand side, you can see that for the last three, four years, and if I would draw that out for 10 years, you can see that ITAB Group is quite a capital-efficient company. The CapEx is 2%-3%, and the net working capital around 10%-15%. So we're normally above 80%, and that's where we've been for the last 10 years. On the left-hand side, you can see that net working capital is obviously one of the biggest levers to improve on capital efficiency. We've gone from around 20% to 11%, partially with the introduction of HMY, which leaves us with a higher exposure to Southern Europe, so that helps us, but we've also focused a lot on this, and this is something we know that we can take the next step here as well and become even better. What can you expect from ITAB going forward? These are the financial targets that we've had pre the acquisition of HMY. In addition to the 80% of capital efficiency that I talked about, you can also see that we have an ambition and a target to grow over a business cycle, 4%-8%, 4% being organic and 8% with acquisitions. Looking to the five years we're coming from, we've reached the growth target with acquisition of HMY. Our target is to grow with 7%-9% in EBIT margin, and as long as we don't do transformational acquisitions, that will leave us with a dividend policy of 30% of net profit. I think that's what you can expect, and that's what we are highly focused on delivering on. Hand back to you again. Thank you, Andreas. Lovely. Quite stable background, transformational acquisitions, new CEO, where are we now and what can you expect from this going forward? What do you do when you step into a business like this as a new CEO? Well, I spent my first 10 weeks getting into the markets, visiting all our major sites in Europe. I did Asia before I joined, meeting our team, looking at our operations, especially on our production footprint, but also meeting our customers and being in more than 200 stores together with the team and the customer. For me, this is based on my background, the absolute best way to understand this business. I think that has been really good. What are the impressions? We are really strong in our local markets with our local customers, and I think this is a massive strength to have because if you have this, you can build other things on the side. I think also as we started out on the strategic position is really strong. To be able to build stores and have a position of strength in retail tech, no one else has this. We have the largest scale in Europe, and we have a position of strength in retail tech, which is where there will be more investments in stores happening in the future. If you have both these areas, you are also allowed to start to drive consolidation of suppliers in this industry. It is a really interesting company as a new CEO to step into, especially coming from a long background in this industry. I think that is something we should build on. Then I think, what are the surprises? There is significant opportunity for this group to be better together, and the surprise for me stepping into this is that we are still, based on the acquisitions we build, very much locally sub-optimizing this business. We have a factory in one market, we have a business in one market, the business works to fill the factory. We take whatever business we can to get the utilization level up. Usually, what you would do as you have 22 production entities in the group, is that you have some that are large scale, long series, and you have some that is working on building customer proximity and speed. Here, everything is doing everything for everyone. There is a significant opportunity, especially in this business as it is project driven, to lower the volume we need locally and then increase the utilization rate and efficiency from a group perspective. This is one of the things clearly we look at going forward. I think the other piece is that how we structure the business, we are locally very strong, but we are not extremely strong in how do we drive this in a more profitable and more capital efficient way. Coming from an HL background and the journey with there, that was something we became really good at, and I think there is some learnings from that journey that would fit excellent in ITAB to be able to get this firstly into the range 7%-9% add the synergies on this, and this would be a good business. I think that's impressions. What will this lead to going forward? I think in the short to midterm, the focus is profitability ahead of growth. We need to get the profitability back up from the 6% to be in this 7%-9% range, and we need to establish a profitability focus in the business that allows us to consistently deliver in this area. I think that's one key element. I think the other piece we would work on is clearly how do we balance this operational footprint, which allows us to have a less choppy business, both from a volume, but especially from a profitability perspective as a group. I think that's a lot of the focus as we step into the second half. I think from a strategic point of view, the strategy in the business, the macro trends, we know them, they are really sound. We can become a little bit more focused over time, but we are here in a sound strategic position. Then lastly, where are we after having made a platform acquisition that doubled the group? Coming to mid back end of next year, we need to start to look at how do we continue to drive consolidation in this industry. What are the areas where we can make acquisitions that really helps this group to take a larger consolidating role in Europe? That's a little bit where we are as a business. I think from here we leave to questions. Excellent. Thank you very much, Björn and Andreas. A very interesting presentation and a lot of angles to it. We'll now have three buckets of potential questions, and I rely on you guys in the auditorium to be one of them. Then we just call up Carolina with the microphone so you can ask your question. Then we have an online forum that if you have sit on watching this online and want to put a question, just put it in there and I'll repeat it for Björn and Andreas. Then if there's no questions, I have a lot of them, that's for sure. That's- That's what I'm afraid of. Yeah. Maybe kick off because you left off in a very interesting situation, 100 days plus in the company now, background from a fantastic journey on HL Display. What are the key things you are taking with you from HL Display? Slightly different business, but the same market. No, but I think the biggest thing that I experienced and learned in HL was that when you look at what is the profitability level of a business like this, HL was not very profitable when I joined, and the mindset of the business was that this can be a 5%, 6% EBITDA business. That is maximum in this industry. When I left, it was over 14%, and it came by just changing the mindset of what does good look like, and how do you push this by small increments all the time? I think that insight is something that I think will be relevant for ITAB as well, because it is not about finding a silver bullet. Yes, the strategy needs to be right, but you need to make sure that absolutely everyone in every organization sitting in every market knows what are the three things I am doing today to improve this business. If you succeed with that, then I think there is no upper limit to how to look at these businesses. I guess that partially answers my next question, looking at now company being an undisputed market leader in Europe within the segment, 7%-9% margin, what is the target for the old ITAB being half the size? If you see all the buckets that are out there, is not this a double-digit kind of opportunity looking at operating margins? Well, looking at my experience, you can easily draw that conclusion. I think from an ITAB perspective, we are in a position where we need to get into solid territory in the 7%-9% in the short to medium term. We need to show that we can stay there and then to build from there on into the future, of course. As you say, if you are a market leader, if you have the scale of ITAB, you should expect good profitability as well. Now when you traveled around meeting most of, I guess, of your large customers, what has the feedback on? What have they given you back, so to say, that they want you to focus on? No, but I think there are really two areas. One, they are really happy with ITAB and how customer-centric we are, and I think that is a strength in this group that as we consolidate, we need to maintain. That is absolutely critical, and we need, in some cases, to be even more agile in short series, small projects, prototype to support our customers. Then I think the other piece they say is that we have too many suppliers in here. You are our big supplier. We expect you to drive consolidation. I think to have that discussion with your customers is a fantastic position to be in from a group. When you look at that kind of handout, I guess ITAB to some extent came from more of an engineering background, if you put it like that, where everything was supposed to be engineered in-house with own solutions. Are we looking at more of a system integrator kind of future, there you are the ones controlling the shop, but maybe using independent kind of suppliers? Yeah, this is what we will see from a trend perspective. If retailers will want to have fewer suppliers, they will want consolidators in this industry. Given the footprint and the portfolio of ITAB, we are probably in the best position to take this role. When you look at HMY, obviously much more of a store fitting company as a legacy, but maybe looking more at larger volumes with larger retailers, it should be a good fit there, I guess. One of the undisputed opportunities that you also highlighted in the synergies, selling retail tech on that platform. What is the learning so far? What has worked? What has not worked? Because when I looked at this outside in, I thought sales synergies, okay, this is usually where you put the things you don't know where to stick. But really what we see so far, the HMY organization have stepped up to sell the ITAB retail tech solutions that has a little bit of a different margin expectation and a little bit different complexity in a fantastic way. I would say right now we are tracking in line with our synergy plan, but you look into the fall and you see that the order intake we have on this is already ahead of our synergy targets. My experience is that this usually takes longer time than you expect in these kind of businesses. So I'm really impressed by the HMY capabilities, and I think it's a testament to how strong their relationship are with their key customers. When you look at the general market out there for the moment, what is your feeling? It feels like it is slowly loosening up, but then you get a headwind, and then it's loosening up a headwind. Where are we in the cycle? Is the customer discussions becoming easier or it's still very difficult? No, I think anyone's guess. I think first half has been a little bit damp, but we see some markets doing really great. We see other markets affected by external factors. Andreas spoke about Middle East. We've seen subsidies in Italy swinging and having a quite significant negative effect. I think you will always have things, and I think in the world we live now, there will always be disruption. The question is, how do you manage these disruptions, and how do you build a resilient business over time? You mentioned acquisitions as a recurring kind of component, maybe in a 12 months perspective of something like that. What are the baskets you have identified that you want to do? Is it more geographies, more products, more- Yeah. ... services, whatever? What are the biggest opportunities? I think it sits in a few bucket. Part of it sits in retail tech, of course, but I think the major part of it sits in some markets, because if you're not number one, number two in key markets, it's difficult to make good money. These are two things we need to continue to work on. I think the biggest piece sit at the bottom on the service sector. To change your model from selling product to selling solutions and being a consolidator, it's a quite difficult step to take as a business, and I think this is probably in the area where we need to make a few acquisition to internalize that competence from a group. If we're going to look at this for the back end of next year, that's probably an area where we're going to spend a lot of time looking. Is that moving slightly away? I guess ITAB is largely a CapEx-driven company looking at the relations with retailers. Would that imply that you're also, again, going to add more of an OpEx kind of relation to the clients? Yes, and I think that over time, we look to make this a little bit more capital light business. We need to have a little bit less of the production in-house to manage the fluctuation. But also when you get into these kind of services, of course, it comes with a shift from CapEx to OpEx. Now traveling around in the franchise, if you take, say, your view on the next 12 months, what do you see is the biggest opportunity and the worst risk that you see out there? No, but I think getting good stability on the top line, getting the second half of the year to deliver in line with our expectation, getting this profitability up within this range, puts us in an excellent position to be able to accelerate growth, to be able to look at acquisitions. I think we need to spend another six to nine months to stabilize the base of the HMY acquisition, and then it's full speed forward. Excellent. That was quicker than I thought. I thought I was going to get that kind of answer now when I maybe ask you as a final question, if you try to be the visionary, where do you think you can take this company in a three- to five-year view? That's the million-dollar question, of course, and I think there's a lot of things I will still discover in this business. But I think the foundation is there to make something really strong and good and even better out of the ITAB franchise. But there is no silver bullet. There is no new CEO who will come and fix this. I think back to where we started, it's about getting the daily increments to happen every day. This is how you create strong businesses. This is how you create ownership in the markets close to customers where we need to be. I think to establish that usually takes a little bit longer time than winning a new customer or a new project. I'm hoping that this is going to be a gradual journey and that we're going to continue to build on the strong foundation that's already in place. Fantastic. Any questions in the auditorium? I am running quite short here on my own now, and I appreciate your straight answers to most of the questions. Normally, you are getting the more woolliest kind of answer, but here, quite straight on where you want to take the company and what we are looking for. I get a little bit concerned when you say that because this is not my area of expertise, so probably there is a learning curve here. You are talking about changing- A second. ... footprint. Could you be a little bit more specific in what time frame? I am not going to get extremely specific, but clearly we have 22 production sites today, many of them with fairly low utilization. At some point, you need to consolidate in this footprint. Is this going to be a massive change? No, it will not be. It will be increments. You will start to combine two of them. You will start to look at what are the capabilities we need in this place? How do we consolidate these capabilities to be more efficient, having better utilization? I do not expect revolution, but I expect us to be really, really targeted from an evolutionary perspective to make sure that we get more stable business, more stable profitability, and the way to go there is to be less project-dependent and less utilization-dependent in our footprint. Since you are the biggest player in Europe, do you aim to consolidate more in Europe, or do you have other markets that you are looking into? I think there is still a lot of consolidation opportunities in Europe, but if you look at the product expertise we have, especially on the retail tech and loss prevention side, having worked a little bit in North America, I spent a lot of time in Canada in a previous company as well. I think the market demands on loss prevention and the ITAB portfolio is a perfect match that we do not fully utilize today. How to navigate that? I do not know at this point, but Europe is number one. It is our strategic focus to be the undisputed leader to continue to drive consolidation is priority one, but this North America opportunity is quite intriguing. Do you see most of your guided growth coming from your current core clients or from expanding your client group? No, I think core clients. Looking at the customer penetration of the ITAB Group in Europe, virtually all big retailers work with ITAB. You do not build a checkout zone in a grocery store in Europe without ITAB to a large extent. Our challenge is: how do we expand our footprint, share of wallet, strategic importance to become more of a consolidator for these customers? Excellent. Thank you very much, Björn, Andreas, and Mats, and all the best out there. It is going to be an interesting 12 months to follow you. We are going to need it. Thank you.