Welcome to MEKO Q2 Report 2026 Presentation. During the Q&A session, participants are able to ask questions by dialing pound key five on their telephone keypad. We kindly ask you to mute yourself after having asked your question. Now, I will hand the conference over to the speakers, President and CEO Pehr Oscarson and CFO Christer Johansson. Please go ahead. Thank you, and thank you all for joining us this morning. I will start with an overview of our second quarter before handing over to Christer, who will elaborate on our financial performance. As many of you know, we have for some time focused on optimization and efficiency measures as part of our initiative, Building a Stronger MEKO. Part of this work has included supplier optimization and cost savings. During 2026, we have also implemented targeted measures in Poland. The aim has been to achieve profitability in this market by the end of 2026. During the second quarter, we continued to see the results of these initiatives. Costs continued to decline, and our gross margin improved. We achieved profitability in both Poland and Finland, and that means that all our business areas were profitable in the quarter. Our adjusted EBIT increased by 32%, and we improved the adjusted EBIT margin to 5%. We also continued to reduce our leverage, which remains a priority for us. Our leverage ratio was 3.4x at the end of the second quarter, down from 3.6x three months earlier. At the same time, market conditions remained mixed. We delivered healthy organic growth in Finland, Poland, and the Baltics, while we reported negative growth in Sweden, Norway and certain budget. Overall sales was unchanged year-on-year, and performance that we definitely want to improve. We, therefore, continue to execute a number of initiatives to drive sustainable long-term growth as the automotive aftermarket continues to evolve. With that, let's take a closer look at this on slide three. In general, the industry is moving towards more electric vehicles, increased digitalization, expanding e-commerce, and an aging car fleet, and a growing focus on sustainability. We are addressing these trends through a strategy aimed at strengthening our position. One example is our e-commerce business, Mekster, our online platform for car owners. Mekster has expanded significantly during the first half of the year and have now been launched in both Finland and Denmark, and the product range has expanded by 130% to around 160,000 different products. This is an important step towards establishing Mekster as a leading online destination for consumers in the Nordics. At the same time, we continue to strengthen our skills and spare parts offering to support the growing number of electric vehicles. We're also expanding our portfolio of good quality spare parts at competitive prices under our own brands, making it more attractive and affordable to repair older vehicles. In addition, we continue to develop user-friendly digital booking services for car owners and launch new AI solutions to improve workshop productivity and service. These initiatives are examples of how we work to strengthen MEKO's leading position and deliver long-term growth as the market continues to evolve. We do this as we continue to build on our modern logistic platform and our extensive network of strong workshop chains located close to the car owners. Before handing over to Christer, I would like to highlight a couple of other important events during the second quarter. Let's move to slide four. In April, we published our annual sustainability report, which is more comprehensive than previous editions. In this year's report, we not only provide greater insight into our business strategy and market trends, but also describe in greater depth how we work with sustainability. As a leader in our market, we see it natural to help drive our industry forward in this area. Among other things, we want to reduce our climate footprint. We also want to improve, again, gender balance among managers in an industry that has traditionally been very heavily male-dominated. As we reported in connection with our full-year results for 2025, we are moving into the right direction, although there is still much more to do. I encourage you to read more about our work in the report. During the quarter, MEKO's Board of Directors was also strengthened at the Annual General Meeting. Camilla Monefeldt Kirstein and Louise Mortimer Undén were elected as new Board members. Camilla has an extensive experience in areas such as strategy and large-scale transformation. Louise also adds broad expertise in areas including digital transformation and aftermarket business models. We would like to extend a warm welcome to both Camilla and Louise. With that said, I will now hand over to Christer. Thanks, Pehr. In many ways, Q2 constitutes an improvement in financial performance, this quarter is, as it should be, much better than Q2 last year. It is also better than Q1 of 2026. As Pehr mentioned, net sales remained unchanged, measured at constant FX rates. We do aim higher, but it is encouraging that these level of sales came at noticeably improved margins. It's also so that costs are down following earlier cost-cutting and investment in automation. This is a good combination, there is nothing further down the P&L to dilute this. Hence, earnings per share is recovering nicely, reaching SEK 1.4 per share in Q2. I'll go into some more details on the profitability improvement in a minute, but first I wanted to touch on our financial position, which is also improving. The context here is one where leverage has been higher than desirable. We came into 2026 with a leverage ratio at 4x compared to our target range of 2x to 3x. Our actions to address this, they have been effective, and you can say that we are halfway by half year. Currently net debt sits at 3.4x rolling 12-month EBITA. Our financial position has also been improved in other ways. To give two examples, we have in the quarter extended the term loan of close to SEK 2 billion, which now matures in 2028. And we have fully amortized the revolving credit facility, which adds flexibility and lowers financing costs going forward. With that said, let's return to the factors behind the EBIT improvement, starting with gross margin on page seven. Here we see an increase of roughly 1 percentage point. One part stems from optimizing purchasing cost and sales price. That's the first bar here. The other part stems from currency movement. Now we cannot take credit for FX rates moving up or down, but what I can say is that we've been fairly successful in navigating that ever-changing environment in the quarter. One of the markets where we have achieved healthier gross margin is Poland, and you can see the result thereof in the EBIT bridge on page eight. As illustrated here, the positive development in Poland and Baltics and Finland matter a lot. These are both business areas which were loss-making in 2025 as a whole, and in Q2 2026 they are both in positive EBIT territory. Now, at 2%-3% EBIT margin we are not content, but it is rewarding to see that the hard work put in by the teams in 2025 is now finally translating into a clear uplift in performance. Let's now have a quick look at the various business areas, starting with Denmark on page nine. Here performance is stable at a reasonably attractive level. Similar to the group at large, the development has been characterized by improvement in gross margins and improvements in cost efficiency. We still have some fine-tuning to do in warehouse operations, but we are getting there step by step. Moving to page 10 on Finland, there's a clear uplift in performance. One can note that in the first six months of 2026 we operate at a positive EBIT margin compared to a - 5 percentage point margin in the same period of 2025. As widely communicated, Sanna and the rest of our local team, they have changed many things in Finland over the last two years, and the platform is now more competitive. We're also growing 5% organic growth in Q2 and even a bit more for the first six months. Turning to Poland and the Baltics on page 11, there are some similarities to Finland. Also here a clear uplift in performance on the back of a growing top line, improved margins and improved cost efficiency. In fact, operations in the Baltics have also reached new highs, but the large improvement factor here is Poland, where I wish to mention two things. Firstly, the integration between our preexisting Polish business Inter-Team and the parts acquired from Elit Polska two years ago is now completed, that's good. Secondly, as described on a previous call, we have set out to reduce staffing in Poland by roughly 200 FTEs. As of now, the reduction amounts to 160 FTEs. All in all, a significant improvement in Poland. Turning to page 12, profitability in Sweden, Norway remains stable at a good level. We are, however, far from satisfied with negative organic growth, and it is not visible in the results yet, but the actions we are taking certainly reflect a higher growth ambition, and we will elaborate more on this in a later call. Finally then, Sørensen og Balchen on page 13. Here we have, since the comparison period, implemented extensive changes in how we run supply chain and warehouse operations, and we have no doubt whatsoever that this is more efficient for the future. But as commented on also in the Q1 call, it has not been without challenges, and this includes issues in IT integrations and other supply chain-related processes, which ultimately must work to guarantee full availability. And where they do not, this affects top line. We are working intensively to solve these issues. We are making progress, but we were not quite there by end of Q2. At EBIT level, I also want to mention that the comparison to last year is affected by warehouse-related cost allocations, and this explains half of the reduced EBIT, so it is neutral to the group, with a positive effect sitting in the other parts of our region business. Before handing back to Pehr, I would, on page 14, also like to mention an upcoming change in our reporting. We have earlier mentioned that our operations in Norway is being gathered under one joint leadership. In light of this change, we have also reassessed the existing operating segments, and we have concluded that it is now more appropriate to separate the Sweden-Norway segment into two, and instead report Norway and Sørensen og Balchen on a combined basis. Sweden and Norway are large markets in themselves, and based on discussions with investors, we believe the new segments to be more helpful to the reader. This change would apply from July 1st of 2026, and it has no implications on our consolidated results or our financial standing as such. Neither does it change the way we run operations or how we use our brands in the marketplace. Q3 will be the first report to incorporate these new segments, and we will publish a restatement of historical financials on the homepage well ahead of the Q3 release date, which is over in November. With that said, back to you, Pehr. Thank you, Christer. Yeah, a few final words from me. During the second quarter, we continued to see clear results from our efforts to improve profitability. Our costs continued to decline, and our gross margin increased. We achieved profitability in both Poland and Finland, meaning that all our business areas were profitable during the quarter. Our adjusted EBIT increased by 32%, and we reached an adjusted EBIT margin of 5%. We also continued to reduce our leverage, which remains a priority for us. At the same time, overall sales were unchanged, a performance that we want to improve. We therefore continue to work with a number of focused initiatives to drive long-term growth. We do this with a strong foundation on our modern logistic platform, our well-known brands, close to the car owners, and continued digital innovation. Our ambition is clear. MEKO should strengthen its leading position as the automotive aftermarket continues to evolve. With that said, thank you for listening, and we will now open up for questions. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. We kindly ask you to mute your phone after having asked your question. The next question comes from Mats Liss from Kepler Cheuvreux. Please go ahead. Hi. Thank you. A couple of questions. First, you talked about the measures there to improve. Sales in Sweden was a bit subdued compared to Bilia, for instance, which generated organic growth. Could you say something there about, first, the measures you will implement or have implemented now, and also maybe something about the performance during the quarter, April, May, June, please? Happy to do so. When it comes to Sweden, we also have some challenges with new actors coming into the market, so the competition has been quite strong. Stronger than ever, I would say. We have communicated, of course, our initiatives of tires, e-commerce, and the exclusive brands. Exclusive brands, for example, the product is now coming into stock, so that will start to sail here after the summer. I think the biggest effort from the Swedish organization, that is back to the core business. Last year was a year of a lot of integrations, mergers of stores, and those kind of things, and now it's full focus on deliver a good service to the workshops. Also, I would say in Sweden, we have good traction on the fleet sales also, which will support also growth in Sweden. There's a lot of initiatives and a full focus on the Swedish market. Should I interpret this answer as you keep your market position by and large? Bilia maybe benefit somewhat from their new car. It's a bit difficult for you, of course, to comment on Bilia's performance. The difference between us and Bilia, just to make that clear, is that they have, I would say if you look at the market, they are Their customers are usually owners of cars, let's say zero to five, six, seven years old, while we have 5- 15 years old. That is the difference. Of course, that shifts also in how the market development and so on. That's why it's not completely comparable. The new competition, which I talked about, that is in our area, it's not on the newer cars. Now I lost your question. No worry. I guess they have some increase there in new car deliveries which have implemented some sort of the service also. Could you just say, during the development during the quarter, I mean, April to June, is there any sort of change in momentum or is it? I would say it's nothing extraordinary in the quarter other than hard work for deliver long-term growth. Okay. Well, Denmark is sort of you're trying hard there as well, but maybe a bit weaker than I expected. Is it more to come there regarding the implementation of the new logistical structure that will help you going forward or continue to help you going forward? Yeah, I think that we will expect some more efficiency out of the warehouse. We also reduced, compared to last year, we closed down several of the smaller branches. If you would like to just measure sales per branch, that is actually increasing in Denmark thanks to that. It was very small branches, so maybe not important. There is still efficiency to gain in the, let's say, warehouse and logistics projects. Yeah, great. Poland, Baltics, it's a pretty solid performance there compared to, well, the current year and year-over-year. The trend seem to be developing in the right direction still, given the reduction in manpower and so on. There are more to come, I guess. Yeah. As I think Christer mentioned, the plan was to reduce with 200 FTEs. We have this 160 that has left, so there is still more to come. Long term, our ambition is that we should leave the year with profitability in Poland. There is still more work to be done. Long term, we want to be as good as our competitors. There is still room for improvement on a longer term. Finally, maybe cash flow was slightly weaker there. Any sort of change in trend going forward there? Yeah. No, maybe let me comment on the cash flow. If you look at cash flow from operations before changes in working capital, it's actually still strong. We did have some changes in working capital during the quarter. They actually do not relate to inventory. Inventory continued to reduce also in the quarter and for the first six months in total, quite nicely. The changes relate to other components of working capital. This is where, as you may recall from the Q1 call, we described that we had accelerated some processes, specifically relating to bonuses compared to last year. That doesn't change anything for the first six months as a whole, but it did change things in between the quarters. I wouldn't read too much into those effects. Maybe if you look at the first six months on a combined basis, that's an easier number to relate to. I think overall, the working capital is at a good level. Thank you. Very clear. Okay, I'll step back in line. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. Please mute your phone after you have asked your question. The next question comes from Anton Lund from SB1 Markets. Please go ahead. Hey, guys. Good morning. Gross margin coming in at the best level in quite some time. Is there more work to do in terms of supplier renegotiations here? There is still room for improvement, yes. On the other hand, also, there's a competitive market. If that will reflect on more, let's say, competitive power or actually more increased gross margin, that is to be seen. There is always room for improvement. Thank you. Is it mainly Poland driving the development here, or how should we think about that? I would say the improvement is actually broad-based. We're seeing improvement in most of our markets, but maybe Poland is the one where the starting point was the lowest, so that's where it also helps the most, in a sense. Clear. I just got one question on cash flow as well. It's up year-over-year on a rolling 12-month basis. You're deleveraging quite fast now. Do you believe that you will reach your target range between 2x and 3x by year end this year? How do you prioritize between the different allocation options once you get there? Maybe I can start, and you can add on, Pehr. I think if you look at the various components of cash flow, we went through a phase where the investment was quite high. That has now come down, and you shouldn't expect it to come back up anytime soon. If you're looking at cash flow from operations prior to working capital, I think the improvement stems from the improved profitability, which surely we're aiming to maintain. Working capital, as I said, okay, so there's some changes in between Q1 and Q2, but if you look at them combined, it's a pretty undramatic outcome, I would say also on working capital. As long as we can keep the business going on this pace, then the deleveraging should continue. We went from 4.0x to 3.4x in the first six months. At that pace, we would be in our target range by year end. When it comes to priorities going forward, I think clearly getting to the target range on leverage is priority number one. We're not yet there. When we're in that range, it's not so that we will aim for zero leverage. At that point, there are other options on the table. Yeah. It will be a discussion for that time. Let's see what kind of environment we are in in that moment. Last time we had those discussions when we was within the target, we had all options open. It could be back to dividend paying, extra dividend, it can be buy back shares, it could be investments in the business. It's too early to look into that now. As Christer said, now the focus is to get there first. Very clear. Thank you. Then just one final one from me. I think you previously talked about your ambitions to grow within CVs, commercial vehicles. Can you just give us an update on how you're developing there, please? Yeah, that business is growing. It's not skyrocket, it is developing in a positive way. It's a lot about making sure that you have the right availability in the right regions and so on. I would say it's a good process. It's not numbers that we disclose, it's working in the right direction. Got it. That's all from me. Thank you. Thank you. The next question comes from Mats Liss from Kepler Cheuvreux. Please go ahead. Yeah. Hi. Thank you. Given the commercial vehicle update you gave, could you say something about, it's more of a Poland Baltics strategy to move commercial vehicle service? That's my impression anyway. Did it make a meaningful contribution to Poland Baltics, the commercial vehicle service this quarter? No, I would say that we're at very early stages in those countries. Where we have the most mature sales of parts to commercial vehicles, that's actually in Norway and Sweden. It's very, let's say, flat over the whole country. That's not the reason for the improvement in Poland. No. Okay. Thank you. Thank you. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. Please mute your phone after you have asked your question. The next question comes from Nicklas Skogman from Nordea. Please go ahead. Yes, good morning, everyone. I'd just like to follow up on the comment about lower interest expenses going forward due to the new loans there. Can you give an indication as to the amount and also the breakdown of the interest expense into lease related expenses and actually loan expenses? Good morning, Nicklas. That's a very detailed question. I'm not sure if I have all of those numbers in front of me, but maybe I can describe the situation on a little bit higher level. If you look over the last couple of years, our financing, the bank financing and bonds and whatnot, has remained mostly flat. Whereas there's been a pretty significant increase in the lease liabilities, and this relates to the new warehouses, of course. If you look at the longer trend and the increase in financing costs, this is fully driven by the lease component of it. In one of our earlier calls, I think it might have been maybe three, four quarters ago, we had a split on those two components where you could see the breakdown. I don't have it in front of me here now. In essence then, you could say that the normal financing cost has remained flat. There is a component to it that is dependent on the leverage. The lower the leverage, the lower the financing cost, even at the same volume of financing. Now when we're on a downward slope, it will start to help us gradually. I don't want to give you a specific guidance for the full year. There's too many moving parts here. Gradually we should be seeing an improvement to the financing cost in absolute terms. All right, great. Thank you. Please mute your phone after you have asked your question. Could I ask another question? Yes. Maybe I missed it earlier, but could you give an update on your various efficiency programs? I think it was SEK 100 million efficiency, I guess, plus the Polish program that you had in Q1, but also the warehouse cost savings. I thought that was going to be around SEK 100 million as well on a full year basis. Sure. Where are you now? How much should we expect from cost savings in H2? Let me give you an update. A year ago, we launched a cost-saving program of SEK 100 million. That has been completed, and we're now running at full benefit from that program, that's good. Separate from that, we've also come to the conclusion that we need to reduce the staff level in Poland by 200 FTEs. We said that that's going to be up to end of Q3, and by end of Q2, we had reduced by 160 of those 200, well underway also on that front. When it comes to the automation of warehouses, this was covered in some detail on the Capital Markets Day last fall, we set out to reduce the number of FTEs by 200. Those are 200 warehouse workers made redundant as a result of the automation. As of end of Q2, we are 80% done. Still a little bit left to do on that front. I think what can really move the needle for the coming quarters if we can achieve organic growth, because the cost base is now fairly slim, I think the bigger lever here is to grow, especially now when we have capacity in these warehouses. Anything you want to add, Pehr? No. That's reasonable. Yeah. Okay. Are you confident in organic growth in H2, or is it more hoping? We're not guiding in that. We have very strong ambitions, so let's leave it to that. It's not hope. We're taking actions to get there. Yeah. Definitely. Good. Thank you very much. Yeah. Thank you. Thank you. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Well, thank you all for listening, and I wish you a good day. Bye.