Hi, welcome to Terranor's first Capital Markets Day. My name is Markus Almerud. I'm an analyst covering Terranor. I think with that, a couple of things. Maybe we keep the questions until the very end, so no questions during the event, because since we are broadcasting it, then we're also recording it. Keep the questions until the end. I think with that, I'll leave over to Mikael Berglin, who's CEO at Terranor, and I'll let you present the team. A very warm welcome again to everyone, especially the team from Terranor. With that, Mikael. Thank you very much, Markus. Thank you for hosting and moderating this session. Like Markus said, a warm, big welcome to both audience in the room with us today and everybody who is following us on link. Without further ado, this is the agenda for the day. We will, of course, start by looking at a little bit about the background of Terranor. We will use most of the time looking forward, because I think that is most interesting. We will guide a little bit more, more transparent, I would say, than we have done priorly. We will start off with me giving a first introduction. We will cover the market. We will also do a deep dive into the segments. We will finish with why we think we are better, to be honest, in doing what we are doing, and that is the operational excellence. Of course, we will also cover some of the capital allocation and finances going through. Markus will come back and help us with the Q&A session in the very end. To help me help the company cover this day, we have Inka, who is always, I would say, with me in these occasions. I'm very glad to have Per with us today, who is country manager for Sweden, representing the largest market of ours. Our Chairman, Anders Gustafsson, who will cover more of the market and the macro situation. I will start right here. Looking forward without looking back on where we have been, I think gives a poor vision of where we are going. First of all, let's look at what has made Terranor up until today. First of all, Terranor founded back in 2020, but as many of you know, a company that comes with a lot of history and experience and competence in doing this as part of a larger construction company before. Very important for this picture. Very important for the journey ahead of us. Terranor was founded with one solid single purpose, and that is to be the best in doing road operations and maintenance. I think looking at the numbers, what have taken us to where we are and where we are going in the future, that is the core essence of the company. We have never set out to be good at many things. We strive to be the best in one thing, and that is road operations and maintenance. Of course, setting out as a new contender in the market, the first years, 2022 up to, I would say 2024, when I joined the company, a lot of the focus was about market presence, gaining a market foothold to be able to utilize and use that platform for future growth. Looking at the years from 2024 and forward-looking, I would say yes, if the past were CAGRs of 15.1% over a continuous number of years, we do not expect to grow equally fast. We have a target of 8%, but what we will do now and looking forward is to be very much more focused on growing profitability. For all of you listening in and for all of you being in the room, Terranor specialized into doing one thing, of course, growing healthy companies gross, but also being the number one in profitability in doing what we are doing. That are the key takeaways going forward. Set out to be the Nordic leader in road operations and maintenance. As some of you might know, we are the only company doing what we are doing in three Nordic countries, and in that sense, being a Nordic leader. It has been a growth journey. Revenue growth, now looking at last 12 months figures, up 19%. You just heard me say we will focus on bottom line rather than top line. In a situation where the market is favorable, we will give more flavor to why it's favorable right now. Of course, we will use that momentum. As long as we can continue growing in a stable, ordinary fashion that enables us to reach the 5% EBITDA target, of course, quarter- to- quarters growth can be in high double digits. Crucial to understand when it comes to Terranor, yes, being specialized, but also being specialized meaning that we work very much towards state and municipality. Public contracts is what defines Terranor. We have a portion of private customers, but the drivers in our market is predominantly state and municipality. Looking at geographical footprint, of course, Sweden being the largest country in road network for sure, also contributes with our highest revenues. We will come back, me and Per will join me and come back and give a little bit more of a deep dive into the differences in the different markets. A quick look at what we have communicated as far as financial targets. Organic growth, 8% per annum, 5% we believe is well within reach. We will guide on how the journey will look on coming up to 5%. Looking at where we are now, of course, we are exceeding in growth. I think worth mentioning when it comes to growth, I think it's predominantly driven by our ability being a contender in a market. We are continuously doing operations better and better. We have proven that over the years now, we can combine high operational excellence with continuous growth, but also increasing margins. Of course, growth is important. We are not quite there yet when it comes to the EBITDA margin. I will right out single out here that looking at Sweden, last quarter was on a 3.7%. I will let Per come back to and guide more on the Swedish opportunities going forward. Dividends. Yes. We had the annual general meeting yesterday, and I'm very happy to be able to follow up on the promise of being a continuously dividend company by allowing a dividend of SEK 1.5 for this year. We have a target of at least returning 50% or more of net income. Leverage. Being a company that will continuously grow and addressing profitability rather than a very fast growth, I think one of the keys is to not carry a large or a heavy backpack with us. Our ability to set up shop or operations wherever we win contracts is partly due to the fact that we do not have a lot of machines, a lot of equipment, a lot of facilities on our balance sheet. The strategy is to continue running the company asset light and also debt light. It allows for future growth, and it also gives a flexibility to the entire operations that we think is favorable. Maybe this is, I wouldn't say the most important picture of the day, but it is certainly setting the stage for all of the slides that will come afterwards. You know that we have financial targets of reaching 5% with a continued growth of 8%. Well, this is how we see it will play out in the years to come up until 2028. Reaching SEK 5 billion in 2028 and also reaching 5% with an EBITDA margin, and without stealing Inka's show because she will be talking about cash flow, but the third parameter that is not in the picture is that we will do this with continuously strengthening the operational cash flows. Having all three of those is what we are aiming for. We feel confident, we feel certain that sticking to the strategy of working primarily towards state customers, secondarily moving into adjacent municipalities, those two will be the drivers of the future growth. We will give more information on the slides to come, but just keep in mind that Terranor sticking to the specialization, sticking to the unique position of being in the Nordic market where state and municipality continuously for a decade to come will invest more and more money. That is a key driver to why we are reaching these targets. Looking at what we do, what differentiates Terranor from competitors? Well, again, coming back to being specialized, personally, and this also, of course, goes to the board and the entire mindset of Terranor, it's easier to be really good at one thing rather than trying to be good at many things. With the specialization, funny word, specialization. What we get is that everybody that wants to be really, really good at doing this line of business, Terranor is the perfect fit. We get people that are motivated, competent, experienced into doing this. That drives a culture of pride, want to do good for society, in meaning that if we do not do the job, society will shut down. The can-do culture, I would say want to do culture. That is what I meet, what we meet in Terranor corridors on a day-to-day basis. Operational flexibility. I gave the example when I talked about asset sheets and being flexible, being agile. Well, that is a core competence of ours. We will tell you more about tender strategy, but for you who have followed us, you know that we bid on all state tenders. It is a key discipline of ours to be able to bid on everything with also having the ability to set up organization. I think now when we have a so strong footprint in all three Nordic countries, we really can underline the ability to go wherever we win contracts. That is the operational flexibility. Customer proximity, to me, that goes hand in hand with the entrepreneurial can-do culture, understanding the needs of our client. Being close to the customers, understanding, since we ultimately many times know the shape and form of, and especially conditions of the roads better than our clients, helping clients, helping society getting better and safer roads. That is customer proximity. Understanding the client needs before they materialize. A little bit more deep dive. State contract has from the very first day been the primary target of Terranor. State contracts, always long contracts, minimum four years, could be as long as six, eight years. They enable us to set up an organization, build the competence around that organization. It allows us to move into the number two, the adjacent market. We will give you some really good, very practical examples of what we really mean. For us, it's always state first because of the length of the contracts. It's also a product that we are very familiar with. We have proven that we can deliver high quality. We have proven with the track record of our three largest clients in all three countries, being Vejdirektoratet, Trafikverket, and Väylävirasto, we have proven that we can provide a good, solid service. From there, moving in, creating resilience in doing more in the locations that we have set up. Once we are in that position, of course, we want to scoop up everything that is going on in the area. For instance, if there is a private owner of roads, if there is a bus stop, if there is anything that is either on the road or adjacent to the road, Terranor is there to provide service for everybody who wants something done. That is the can-do, want to do more mentality. Which bridges perfectly fine into the specialized organization. I started saying that Terranor of course started in 2020, but looking at the colleagues in our company, there is experience and competence that goes way back. I cannot underline enough what pride and culture does to a company. In our company, this is the only thing we do. We put a lot of pride into doing it. Entrepreneurial can-do culture. Well, my background is, or rather I would say that my experience in doing this type of business, I've been in construction most part of my life, you need people in the organization that fixes the problems close to the origin of the problems. What we are setting up in Terranor is short decision paths. From me all the way out to the road, we cannot have too long of a distance, but we also need to empower and enable the local organizations to be entrepreneurial. That is something we constantly are discussing. Are we building support functions or HQ functions that is enabling that or disabling it? This is something that is very much top of mind, creating the ability for the organization to actually provide services in the manner that we want them to provide. Looking at the middle, of course, local presence is everything. We cannot do our services from remote. We need to be where the roads are. Local presence is everything and giving the right conditions for the people to be all they can be, supporting the clients in whatever they need done. On the right side, a couple of examples that is not within the base contracts. I think that is also very crucial to understand because when we target, first of all, the state and the municipality contracts, those are the base contracts. Those are the 365 per year, 24/7, the things that are necessary to keep roads open and safe. On top of that, we do have a lot of things that goes back to an underspending, a deficit in roads being too poor for whatever needs are today. There is also a lot of adjacent things. This is a couple of examples on what we are talking about when we mean doing more wherever we are established. Success factors. Well, you heard me talking about the colleagues, the employees. That is the big difference. Having an organization that knows the local market, that have the strength from the bigger organization behind it. Of course, Terranor now trending towards SEK 4 billion in revenues, close to 650 employees. That is a big company. We want to drive it as having all of the pros, all of the positive things that comes with the stability, the know-how, the lessons learned, sharing over the company. First and foremost, it's about giving the right prerequisites for the guys and the men and women doing the actual work. Established supplier network. Well, Terranor, being agile and being flexible and being able to move, key to that is also utilizing or using subcontractors to a high degree. I would say that it varies a little bit. I can come back and comment it on the different countries, but some 65%-90%, perhaps over in Finland, of cost is from subcontractors. Tying subcontractors to us that mirrors our way of doing business towards the client is a key. We put a lot of efforts in finding the right subcontractors and using suppliers that delivers the same high quality that Terranor wants to be known for. Data-driven tendering process. We will spend some time today talking about tendering process. Of course, being in a highly price competitive driven market, it's easy to gain market shares by simply dropping the prices. What defines Terranor is the ability to combine winning tenders, but winning tenders on the right prices that also enables us to move towards 5% EBITDA margin. I think early on when we took the decision to invest in a central tender department, that has been a key, but even more important is the collaboration that happens in the tender process between the central tender department and the local know-how and competence. That is where you create responsibility, you create commitment, and ultimately it's our local teams that needs to be able to provide the services. If we simply calculate the lowest price and cannot deliver on it's a default situation. We now have continuously over a couple of years proven that new contracts are providing, producing margins that are either on tender margin or better. Local customers, of course, like I said, state contracts moving into municipalities. I will not steal that slide. Per will come back and talk of the examples in Sweden. I will talk to some extent about Denmark and Finland. Moral hazard. Well, moral hazard in this context is when you become too emotionally engaged in contracts. Being in this line of business means that you have to give away some contracts if the price is wrong. That is the entire discipline. Looking at the two last seasons for tenders in Sweden and Finland, I think Terranor has proven that we have the discipline. We also have the ability to ramp up and ramp down. That is a key component in our success going forward. Like I said, it's all public tendering, meaning that we have a very high visibility in what tenders are coming out. This is especially for the state contracts. We already now know what contracts are coming out in 2027. We had a meeting last week talking to the central tender department for me understanding where are we regarding the 2027 contracts. We have already started calculating it. To me, that is thinking ahead. That is being planned. That is being strategic in what tenders we really want and what tenders we will bid, but we will only bid them to the right price. What we want to show with this is that it's a long process tendering these contracts, because ultimately you will be stuck in contracts for four, six, maybe eight years. If you tender them in a manner that also enables the operations to thrive and to be profitable, well, then you will have not easy. It's not easy what we are doing, you will have a good journey. The client will have a good journey together with us. For us, it's very much about tendering the right price that also allows the right conditions for us, for our colleagues on the road to do the operations. We participated in 100% of the state tenders in Sweden this year. We won 31%. When we talk about these numbers, we do not really want to talk about contract per contract because the volume in the contract varies. There is a big difference between a large urban contracts in contract volume-wise and smaller urban one. Sorry, countryside contract. Talking about 31%, we always talk about volume. Ultimately, volume is where we want to end up in the revenues. We do not calculate contract by contract. We know that there is an increase of 46% in annual revenues through awarded contracts. This provides visibility and transparency going forward. I think this is also something that is very significant for our line of business in the road operations and maintenance, being the high transparency. We have a backlog now that supersedes SEK 6 billion, and it spans over four years going forward. That foundation gives us stability and strength in moving forward. High visibility, high transparency. The contracts we won this year, well, they are all across the nation, it might seem, but to us, this has been a huge success because we have strengthened the strongholds where Terranor exceeds in their strategy. Having a can-do, want-to-do mentality, you want to be in contracts with high density, high volume. I think that is what is represented in the middle map. Portfolio is improving, I would say, because of two things. We have been successful in tendering. Yes, we have a robust, very professional, very focused tender process. We have also been good in utilizing the foothold that we get from the state contracts in targeting adjacent markets. Portfolio is now, I would say, not perhaps the first time, but starting from 2024, coming into 2025, we really see the traction that comes with being present in the market, utilizing, I would say, more or higher utilizing the operation and the locations that we have that spreads out into municipalities and local markets. A couple of things about what I think we think is competitive advantages differentiating Terranor from others. I would never claim that the other companies doesn't have a data-driven tender strategy, but I dare to say that I do not think that anybody has put in as much effort as we have in really crunching the numbers. Bear in mind that in a market like this, all of the data points for I think we have had Mjölby in a prior company before we became Terranor. We have had that contract for decades. Of course, we know it inside and out, but we also know the contracts next to Mjölby because all of it is publicly available information. What has the competition bid on? Who has bid on it? We come from a situation with few competitors. Large ones, yes. The history of this line of business was that for many of the contracts, you would end up with just having one company bidding on the contracts. Terranor set out very early with the strategy to bid on everything, simply to be disruptive and break that chain or wheel where some companies could benefit from putting in ridiculous prices into some contracts and underbidding others. Holding the line, being data-driven, being disciplined, that is a key competence of Terranor. Specialized, you heard me talking about, to me, to the core of my leadership or my reasoning about this, it gives culture. It gives purpose, it gives culture, it gives meaning. Being in a company where you are allowed to be really good at one thing. It also allows us to, I wouldn't say question support functions. I'm a big supporter of having support functions into the line of business, but only if they actually provide and enables the operations to be better at what they are doing. It's easier in our line of company where controllers, HR, IT, everybody's focused towards road operations and maintenance. They need to understand what we are doing on a day-to-day basis on the road. Operational excellence. With few layers or levels in our organization. We strongly believe that having the lessons learned when things go wrong and having the good examples spread out throughout the organization, it's easier. We do not have a lot of layers, levels. Things do not have to move constantly up and down. We are fast, we are agile. We can spread information faster than competitors simply because culture-driven and being a slimmed organization. Business-focused and efficient governance. Well, aiming to reach 5% in EBITDA margin, of course we cannot be fat in overhead. If we are putting in support functions, it's always questioned, does this really provide better services on the road towards our clients? Efficient governance is definitely not hindering entrepreneurial drive. It's quite the opposite. Efficient governance is securing us being prudent, us having sufficient control in the processes that need sufficient control. If you tie people, our employees, their entrepreneurial drive, if you hinder that goes towards the foundation of our culture. We want to be entrepreneurially driven. That is being business-focused and that is having efficient governance, not over-efficient governance. With that, please welcome Anders Gustafsson, my boss and the Chairman of Terranor Group. Welcome, Anders. Thank you, Mikael. Thank you. Mikael. Thank you. Nice words. Thank you. Thank you. A short brief about the market, of course. Myself, my name is Anders Gustafsson, and I am the Chairman of the Board of Terranor Group. A few words about the market. I think Terranor stepping in a huge market related to road operation and maintenance. We can see a high demand to build and of course maintain critical infrastructure across Nordics and of course even in Sweden, Finland and Denmark, the key markets of Terranor. If you look at some key market drivers that require maintenance, first in all three countries, again, Sweden, Finland and Denmark, we see a maintenance deficit. Other drivers that support increased maintenance is of course traffic volumes. A lot of traffics and increased traffics require specialized operations related to maintenance. We also see increased complexity of the infrastructure. More complex infrastructure require also more specialized maintenance of this infrastructure and of course high focus on sustainable infrastructure and of course increased safety requirements across Nordics. A little about the market. Terranor is stepping in a huge market with a platform of 2024. We forecast this market to SEK 76 billion. If we look a little bit on first Sweden, we expect this market per year increase with 48% compared to help Sweden come back to that market. Of course again we see increased level in the national transportation plans even in Denmark and Finland. As Mikael mentions, I think Terranor is the only company just now in the Nordics, only 100% specialized in road operation and maintenance. Of course, we see other companies large and mid-size operating in the maintenance sectors, but as one of several business areas. Of course, I think the key that support profitable growth during this strategy period to 2028 is to stay as a specialized company related to maintenance, a little bit of the resilient and the stable market. We start with contract constructions, and I think we see long-term contracts from four to six years that support stable revenues and of course support profitable growth. We also see indexation mechanism related to materials, fuel and other costs and of course that decrease the risks during this contract and during this contract period. Also a stable market. We need infrastructure and of course we need to continuously maintain this infrastructure. To sum up this short brief, I think to stay as, again, a specialized company related to maintenance is a key factor for success for Terranor Group and also a quite difficult market to enter because of these higher barriers to enter this market. The market's supported with increasing national transportation plan during this strategy period, and especially the key market, Sweden. We see an increasing level of 48% per year related to road operation and maintenance. Of course, these long-term contracts and the form of these contracts support also stable revenue and stable profitability. Of course, the market we always need to sustain critical and of course, maintain critical infrastructure. A short brief about the market, this stable and increasing market. With that, it's time to you, Per, to guide us a little bit about Sweden and the operation in Sweden. Welcome. Thank you. Thank you, Anders. We will do this together, Per. Yeah. Yeah. That's good. Like we usually do it. Yeah. Okay. With us today, I was thinking about it, listening to Anders, high market entry barriers. Doing what we do is difficult. It's even more difficult to do with profitability. That is the entire trick of doing what we are doing. With that being said, I am so glad that Ivan should have been here. He's the country manager of Denmark. You, Per, you have so much experience of doing this line of business. I can't say now because Ivan is not here, so I will talk about Denmark. I will talk about Denmark, and I will also cover Finland. We celebrated Ivan's 25 years in this company or the prior company. Both you and Ivan comes with a lot of experience, and that to me is a great support. Yeah. Okay. I will just give you a few words moving into Sweden, Finland, and Denmark. Sweden, of course, we always refer to Sweden as being the driver, the motor of Terranor going forward. That doesn't mean that the other countries are less important or more insignificant. Quite the contrary. I think the strength of Terranor is being the unique, the only provider of doing this throughout the Nordics. It adds to the knowhow and the expertise, definitely. There are many overlaps. It adds to culture being part of a company of our size. Of course, Sweden is growing faster simply because more money is coming into Sweden. You will talk about this, Per. Operational leverage, of course, Sweden has been growing faster but has also been able to build a more solid foundation for growth than perhaps the two other countries. Cluster expansion, you will talk about. Finland. We have a situation that I will come back to when it comes to Finland. For this slide, I will say that looking at the Finnish market, we do not see the same level of investments coming into Finland as perhaps in Sweden and Denmark, making it more important for us to choose the path in Finland strategically. More selective bidding. It's more important for us to secure the margins in Finland rather than prioritizing growth right now. Risk mitigation, yes, for sure. We will remain long-term in Finland, but we will only remain long-term in Finland if the conditions are there to meet the group's long-term targets. Denmark, fragmented market because they differ between winter contracts, summer contracts. In Denmark, we are the market leader when it comes to summer contracts. I think utilizing the fact that we have 80% of the summer contracts in Denmark moving more and more into large municipalities, that is the way forward. I think Denmark has good ability to soon be on the 5% profitability level, but also adding to the continuous growth. A little bit different scenarios in the three countries, and we will do a deep dive starting with Sweden. Per. Thank you. Take this one. Yes, thank you. It is exactly as Mikael and Anders informed that we have a very strong market now in Sweden. I want to talk about how we scale our business in Sweden. We are in a very good position. We have a growing revenue with 80% the last five years, only for this year, we have an order intake for almost SEK 2.2 billion and SEK 1.6 billion of them come from Trafikverket. We have municipality and the smaller infra business. Q1, now in April and May, we have won five new municipality contract in Sweden, total new for Terranor. Three in Helsingborg and two in Falun. I will come back to that a little bit later. We have a target to growing on the market share. We have today 23 ongoing contract with Trafikverket, and we have also a target to be a local density expansion in Sweden. Now we use the municipality contract for that. It is important contract for Terranor because this is the same type of competence we use in the state and in the municipality contract. With the municipality, we can find the cluster with more than Trafikverket. We can build up a cluster with municipality and also with smaller infra project. The third one, discipline execution. With more contract with the cluster, we can use our resources in a better way. We get higher utilization for personal resources, but also for the subcontractors and the heavy machines, trucks, and equipment. With the build up a strong relation with our customers, we get the extra jobs from them because they believe in Terranor. Our tender strategy, we have a centralized bidding organization, and they secure the quality of our bids. Them, together with local competence, give us competitive bids to send in to Trafikverket with attractive margins. Our strategy when we working with these bids, that is, as Mikael said, we bid on all contract in Trafikverket with attractive margin, and that give us a broad participation in Sweden from up in north until the south of Sweden. When we have this broad platform and we can add more municipality contracts, we find the cluster, and that give us synergies in the end of lower costs. We can have a joint location, use the same salt, halls, and like that. If you look at the customer share, it is quite clear that Trafikverket is the most important thing, that is the core business for Terranor and also the municipality. If we look at the future, I think we will grow in all these type of customers, especially, I think we will grow more in state and also in the municipality because we are more active with municipality tendering. Can I? Absolutely. Thank you, Per. Looking at Finland, Per was talking about the need of handling a deficit of maintenance in Sweden, driving more investments into Sweden. We do not really see the same trend in Finland. We're talking about the state market. We have been a little bit reluctant or hesitant in the last couple of years on the tender strategies for Finland on the state side. In Sweden we bid on all contracts, we have been very much more selective. This year, we won two contracts in Finland on the state side. One of them is a contract that we have been running for the last five years, and the other contract we won is the neighboring contract. I think that tells you something about what we're looking for in Finland. We're looking for contracts where we do not guess to be able to provide services with profitability. We want to lean more on the know side whenever we enter into contracts. I think also it's fair describing the Finnish situation, especially on the state side, I think it's fair to say that when we compare prices in Sweden and Denmark, they have been increasing more, so more money is being spent. In Finland, the price competition is more fierce, so prices are rather putting continuously lower and lower, which also makes us a little bit hesitant. What we are aiming for when it comes to Finland and order intake is now municipalities. We have really strong, good examples of municipality market being strong in Finland. I think the way for Finland to recover up to 5% margins from the position they are in goes towards two things. First of all, we need to handle project portfolio, which is very back heavy. Finland took on a large portion of their backlog in the years 2021, 2022, and 2023. Those contracts were exposed very much to a high degree towards price inflation. Price inflation in Finland, to a high extent driven by the Ukraine War and the sanctions that followed upon it. We have talked about the claims we have directed on all the contracts. Let me shed some more light on what the claims are about. First and foremost, yes, there are roof prices in these contracts, but in the same breath, one also has to recognize that their target roof and target price, because there is a roof price and there is a target price beneath it, are supposed to move. We cannot estimate, we cannot fix a sum for every year, not being able to know how much snow, how much cold, how much slippery, how much activities needs to happen in the contracts. Every year, we need to come to an agreement with the client about what this year's roof price and consequently target price will be. For these contracts going back to 2021, we have not been able to reach that agreement. We talked earlier a lot about culture being close, the proximity to the client. It is the core of Terranor. We are always striving to find a mutual understanding, solution-oriented on all levels of our organization. The core is to find solutions to problems, because everyday problems arises. I am confident that we will find a joint mutual solution also with this situation in Finland. In the same breath, it is also fair to say that Terranor has always set up the country entities to function on a standalone basis. We have never set out to allow any of the business divisions to be failing, to be losing money, where we would end up in a situation where other parts of the business would make up for a loss-making business. This is important to understand out of two perspectives. First of all, I am a strong believer that we will find a mutual agreement with the client regarding these old contracts that allows for the Finnish operations to be equally profitable and to meet the long-term targets. Secondly, if we, this is definitely not what we are looking for, this is not what we are anticipating, but if we were to end up in a situation where we cannot recover the situation in the old contracts, yes, we have been outspoken, and we have said that the only intra-group relations that is between Finland and or Denmark or Sweden, for that example as well, to the rest of the group, is performance guarantees. We have singled out the number that ties Finland to the rest of the group, meaning that in a very worst-case scenario, that is what the liability would be for the remaining group, for the rest of the group. I cannot stress enough or underline enough that, of course, we are on a day-to-day basis providing good quality services. That is what we are aiming to do today, tomorrow, and for years to come in Finland. The grim outlook or the grim scenario is definitely not on the table, but it would not be prudent for me in my shoes to at least not consider or make an analysis of it. That is why we have also chosen to be outspoken about how such a scenario would reflect the rest of the group. Two things when it comes to Finland. We will remain cautious when it comes to bidding on contracts where we don't see profitability being more or less certain. We will move more and more into the market of municipalities if we don't find the right preconditions in the state contracts. We will need to come to an understanding with the client. That is a win-win situation if you ask me, because in a market is the same in Finland as Sweden, Denmark, there are not many contractors doing this. I strongly believe that also our client sees the benefit of having Terranor in the market. Finland is important. For us being a Nordic company, Finland is important. We have contracts in Finland throughout the country. The contracts we won are towards Sweden. It's up in the northwest. There is the contract Kemi, and we now won the adjacent Ii contract. Like I said, I am now acting CEO of Finland. That is a temporary solution. My focus long term will, of course, be needed elsewhere. Having the situation with the older contracts and the claims that now have been disclosed to the client, we thought ultimately the board decisions and my opinion as well is that it makes sense for me to have a lot of time spent in Finland. Long term, we will find a country manager that will continuously drive the Finnish operations forward. As it is right now, I will remain until that situation is resolved. Denmark, again, I really wish Ivan Pedersen could have been here because he would probably have done it better than I can. I would tell you what I said earlier about a more fragmented market. Yes, we have 80% of the state summer contracts and yes, we have a new state contract cycle. What we mean with this is that starting back in 2021, Terranor in Denmark won 100% of the summer contracts. We ran 100% of the state contracts for four years, and they were taken in a time of Terranor's history where, of course, going to market and winning contracts was more important. Yes, margins were challenging. We were able to win four out of five of those contracts starting from January 1st this year, 80%. There was a limit to how many we could win, so it was a home run. We won 4 out of 5. What we want to convey, what we want to say is that, of course, the expected profitability in those four are higher. That way we can also say that looking at EBITDA margin going forward in Denmark, yes, we expect them within this timeframe that we are talking about up until 2028. We are guiding for the entire group until 2028. Denmark will reach a 5% EBITDA margin, and they will, in that sense, be contributing to the overall group. Denmark is also very interesting because municipalities put a lot of money. In the municipality market, you will see full-year contracts. In that way, that market is not quite as big as the state market, but it's definitely bigger than in municipalities for Sweden. Ability for Denmark to grow into municipality contracts. Also looking at different contracts like defense contracts. We are not moving out of the scope from road operations and maintenance. We are merely finding out different clients or different verticals to do the same line of working. Having different clients, of course. We are less dependent on one in each of these contracts. We can, like Per mentioned, the cluster scenario. We have a really good position in the north of Jylland, and we just recently announced that we re-won the Ikast municipality, which is right in the middle of Jylland. That is a very good example of using the state contracts. You see how much of the green that we are currently in, that is the state contracts. Also moving into municipalities is what we are targeting for Denmark. Looking at the pie chart, you see what I already mentioned. Municipalities carry a higher portion than what you would see in Sweden and Finland. Yes. Yes. Per, operational excellence. Why are we doing this better than the others? Yes. We have these three success factors we focus on. I would say that we stand out if we compare Terranor to our competitors with these three factors. For Terranor Group, Sweden take the lead and develop these factors, and then we will implement this to the rest of the group. Best in class in tendering. We want to grow, and we want to calculate that we want to do swellings in the contract and want to do the extra jobs in the contract. Operational entrepreneurship is a can-do mentality. We will build up a strong local organization with local ownership. The third one, leverage on new technology. We want to be the lead of this business and also be the lead of the new technology. I will talk a little bit more about these three factors. This is the result about a successful tendering process. You see we are strongly located where the people live, where we see the biggest transport corridors, where all the traffic goes, and where the jobs are, and where we can find the extra job. Västergötland, it's a government. You see we are very strong there. We're running seven state contracts and five big municipality contracts. That gives us direct synergies with the joint location, subcontractors synergies, and personnel and equipment synergies. We can also have a higher profit because we use the same type of resources. Östergötland, there we have a strong platform of a municipality contract. That gives us a good position to also be strong on calculation when the state contract comes. Up in north, Västerbotten, this is the result of the strategy we have in the north. Before, we have had a lot of contract in the countryside, but we see the revenue is quite low, not so much of extra jobs and swellings. Now we have go to the coastline where the biggest road are, and where the people live. Now we have established more new contracts. We have four state contracts, all are adjacent together. We have also start up a municipality contract, and Umeå is the biggest city in north. To running this contract, it is complex. Also to tendering, it is complex. There is a lot of procurement document so we need to understand. To be successful in this, we need to understand how this affect on the local conditions, because the documents are the same almost, up in north and in the south. When we do the calculation, we need to understand that. We also need to understand how local markets, where we tendering. Is it some other contract we are interested in, some municipality contract or anything else, so we can find the synergies and build up the perfect organization for running the contract. What we do in the tendering, we of course use the public procurement documents and combine that with our own data from history contracts, and also check the price level of the subcontractors. With all this data, we can have a high-quality bid with an attractive margin. When we win a new contract, we are well-prepared to take care of the contract and start the mobilization, because we have full control of the subcontractor's cost, because we have checked that in the tender phase. We have also a clear plan how we will run the contract with a tactic. In our tender strategy, we want to job in the contract. We want to have swellings, we want to have extra jobs. The factor of operational entrepreneurship, for us, that is local ownership. We will build up a good relation with our customer, so we understand the needs the customer have. We want to be proactive and always have job proposal to present to our customers, so that make it easy for them. Then have an organization who is very focused on the operational. They have the ownership to run the contract and take the decision about the contract. Just to give you an example how we work, with a local organization, with a local contract, we try to understand as far as possible the customer needs, and then present job proposals for the customer to improve the roads or the municipality facilities. Do that extra job or swellings with the organization. We get high revenue and higher utilization and better profit. When we do this job with a high quality and on right time, we get a stronger relationship with the customers, then give us more opportunities, we make the job more easy for the customer. Outcomes, yes, value to the customer, better road, safer road, and that give us also higher profitability in the contract. These are two good examples about operational entrepreneurship. The first one is from our contract in Kungsbacka in the west part of Sweden. Trafikverket come to us and ask if we can repair serious damage in an adjacent contract who are running with another contractor. We take a visit and making a job proposal for Trafikverket, they order it. This is very good entrepreneurship for us, that we go in, Terranor, into our competitor's contract and making money in that contract. The other example is when we do the weekly road inspection, the driver find a defect on the asphalt surface he hadn't seen before. He start to thinking, w hat can happen here? The organization take a decision, we need to do a root cause analysis here. We find the problem, and the problem was 14 m under the surface. Also here, we present a job proposal with a good time plan for the customers, and we can plan the job in a good way, and they order it from us, and that give us extra job for SEK 14 million in this case. Then we have a lot of other examples of extra jobs we do. As Mikael showed this before, but this is just some example. It can be bus stops and other things also, private roads, road drains, or like that. Where we have the competence, we do jobs. The third one, new technology. I just talk about the road inspections. Today we do the road inspection very manually. We sit in a car, and when we look at the right side, we see defects on the right side and missing on the left side. With this new technology, we're using a camera in the front of the window, and they find the defaults, deviations on the road and get the photo and a geotag where it is and send it in to the supervisor so they can plan the work in a better way so we can do a cluster of job when we are on the road. It be more efficient operations. We also find deviations before it be a bigger problem and disrupting the traffic. The safety on the road will be also better. The last one about new technology is about the winter season. Winter season in Sweden is three to six months. We all know that we can't influence the weather yet. What we do now that, yes, we have a lot of demands in the contract about the friction and snowplowing and like that, but today we have our own and a new decision support system, and it's a forecasting model adjusted with local condition. We can have a special forecast for Umeå and where we know exactly where it's a little bit colder or where it's a little bit warmer like that. We're using salt equipment, so we can calculate for how long the salt gives effect on the roads. Another new thing is an infrared camera in the front of the salt spreader. When the truck drives on the road, the infrared camera scans the surface and finds, here it is slippery. Then it sends a signal to the salt spreader just to put the salt where it is slippery. With this gives us lower salt consumption and lower cost, of course, and I would say also higher quality on the road. High quality about winter maintenance means also the road safety is better. No. No. Not yet. Not yet. Thank you, Per. Very good. Thank you. Of course, Per is country manager for Sweden, so all of these examples you're giving, especially on how we use new technology, that is, the examples are from Sweden. This is also the benefit or the strength of working in a group company, that we can use the good examples in Denmark, in Finland, and also the other way around. Absolutely. Yeah. Yep. Yeah, just want to underline that. Yeah, of course. This goes out through all the operations. Why I was hindering you is that we have been holding people now for 50, 60, 70 minutes. We need a break. We could need a break. Yep. I think we will be back at 2:30 P.M., and we will allow Inka then to talk more about the finances, and we will also have a Q&A session. Yep. 2:30 P.M. and a break now. Thank you so much. Thank you. Thank you. Okay. Welcome back, everybody. I hope you enjoyed the break. We who are in the room certainly did. Returning to Terranor and this Capital Markets Day, I will leave the scene to Inka Kontturi, our CFO, to talk a little bit about capital allocation and finance issues. Inka, please go ahead. Thank you, Mikael. The name is Inka Kontturi, and for those who doesn't know me, my background is in operational finance. Have been working 20+ years in infra business. Started with the power grids, then I have done tele and mobile networks, and now securing the road infra. I think it has become super clear already that for us, this is all about operations. Only the operations can actually secure the cash by running an efficient and profitable business. Our support functions, they have been specialized to support operations to achieve this target. We are here to add the value for the operations. The aim is to build the processes that supports the financial management of the projects, and also to provide the KPIs for the operations. Our finances are quite stable, meaning that we have long contracts with the customers with the zero credit risk. We do road maintenance, so same service year after year, and nothing sudden will happen over the night. It gets a bit more exciting when we are looking into the seasons. The seasonality, we do have two seasons: winter season and the summer season. During the winter season, we use more on a fixed pricing to mitigate the risk. There is less opportunities to affect the margin. When it comes to the summer season, we have more variable pricing, but also the increasing amount of the extra works, and therefore also better opportunities for the margin. Looking at the historical revenue share per quarter here. Three first quarters, they are quite stable, and the Q4 is always a little bit higher than the first three quarters. When it comes to the adjusted EBITA margin here in the below graph, you can see that profitability is increasing towards the year-end with the variables and with the increasing volume of the extra works. The seasons, they will affect also the cash flow profile. Here we can see the historical numbers in past three years. Adjusted EBITDA, like EBITA, is increasing towards the year-end with the closing of the variable and the extra works. Cash profile looks a bit different. What we can see here in the historical numbers 2023, 2024, at the year end, we can see the spillover effect from Q1 to Q1. This year, meaning 2025, we were a bit more on time with our invoicing. Also when we see the quarter- by- quarter, we can see the Q2 always tripping a little bit, and this is when the season is changing. The cash profile, or actually the timing of the invoicing, will change. The variable works and the extra works will be always invoiced when the job is completed. Towards the year end in the Q4, we can see the cash flow increasing when we are completing all the jobs. The target here is to have the more steady cash flow between the quarters here. This is by shortening the lead times and therefore also the cash cycle will be faster, and this will help us with the seasonal lows. Here we have the historical financial profile, our top line growing year by year. Today, we are having the record high order backlog, standing on SEK 6.3 billion at the end of the Q1. After the Q1, we have already secured the order intake on SEK 1 billion on top of that SEK 6.3 billion. Thinking of our growth target, 8% here, we see the most of the potential in Sweden. Mikael already showed you the forward-looking numbers being SEK 4, then SEK 4.5, up to SEK 5 billion. With the margins, 3.9%, then 4.5%, and finally to 5%. When we are looking at our base business as today, we already are on a really good level with most of our segments here. On the right side, we can see the cash profile. We already looked into the cash by quarters. The target here is just to have the faster cash cycle within the year. When it comes to the CapEx, we run the business CapEx light. Yeah, like I said, the business is CapEx light. Instead of CapEx, we do leasing. Our leasing agreements are always connected to the customer agreements and to the growth. Typical leasing is around 5% of the contract cost. Then on top of that, in addition to leasing, we do have the small cash credit line also. On our leverage target, we are well below under the leverage target, what we have today. Keeping the leverage below the targeted level, it means that the leasing liabilities will be always connected only to the operational needs. In addition to that, we will focus on timing. We are growing organic. Mikael tends to say that no need to buy something what you can win by tendering then s ecuring the profitable operations and the efficient cash management, we can secure also the dividend for our owners. As a summary, long contract with a reliable customer, no huge CapEx needs, profitable operations, the target is to continue to pay the dividend for our owners. Thank you. Thank you, Inka. Thank you. Can I have the pointer? Yes, you can. Thank you. Of course. Moving into the final phase of the agenda for the day before we allow Markus to come back for a short Q&A. Let me try and summarize. Terranor as of today, I will start by saying that what Terranor has been able to prove over five, six-year period of time, this goes for all the three countries that we are present in. We have been able to grow continuously with profitability, perhaps not as stable profitability as we would have wanted, it has also taken us to a point which is, in our opinion, a very favorable position as of today. A first phase of Terranor, making us present throughout the Nordics, enabling us to target all of the contracts that we want to target. We have achieved that position through a very diligent and very focused tender process. I think that our colleagues have proven that the operational excellence that goes to being specialized, we have never been able to reach this position without being really strong in our delivery. The business model that Inka talked about has served us well, and we will continue operating through that business model. Yes, we have attractive growth ambitions. I would say as far as the growth ambitions goes, we have proven the ability to grow, partly due to the tender process, but also having a really competitive offering in the market. That is something we of course will continue to do, but also be very mindful going forward, not growing too fast. It's about creating a scalable platform, scalable both financially, perhaps even more important organization-wise, so that we can bring in all the people that is needed for the growth, and doing it in a suitable pace that allows us to reach the targets that we today are being confident and transparent about reaching SEK 5 billion in 2028 and 5% EBITDA margin. Coming back to why we feel so confident about it. Well, one thing is our own operations, and that is of course what we can affect on a day-to-day basis. That is the foundation of what we are doing. Secondly, I think that everybody who is looking into our line of business from the outside can agree that the need for safe and open roads in the Nordics will only increase from here and going forward. Traffic volume will increase. The need for safety will increase. The trucks will be heavier because logistics is driving that. Sweden being part of NATO will drive more heavy trucks on our road structures. In all three countries, we see an increase of more investments into road structure, road operations and maintenance. I cannot be underlining enough what it means to having a platform as strong as ours in a market that has so positive outlooks. Of course, this is a work that needs to continue day- to- day and us being humble and mindful about what we are doing. I will be forward-leaning and bullish in my personal outlook for Terranor's future. We would not have presented these numbers if we didn't feel strongly that this is clearly achievable. Looking at the timeframe up until 2026 and 2028, let me be clear that what we are talking about here is the existing markets that we are currently in. We have been given questions about what about adjacent markets? Let's be clear about, of course, Norway is interesting for us, but coming back to being humble and prudent about the operations, having the outlook and the potential that Terranor has today, we will go to Norway when it's right for us to go to Norway, and when we feel that we also can do it in a way that contributes to SEK 5 billion and 5%. It's on the table definitely. We will talk more about it in the future, but let's not forget, it took us five, six years to take us here. Now is the time looking forward where we should prosper from having invested in the operations, in the market platform, in the tender process. We will look into adjacent markets when the time is right. I think maybe that is, I don't know if it's an opening or a closing, but since we had an owner for the first five, six years, we did the IPO last year. As of yesterday, one could say, we have a new owner structure. It feels in a sense that now the next phase of the journey for Terranor really starts. That is for me personally, something that feels very positive, very challenging, and I'm very happy to have some of our new owners in the room, and I know that some of our existing and new owners are listening in. That I think is a good closing to this Capital Markets Day. We will open up for some questions. Markus. Yes. Back on the stage. Maybe I will start out on the margin target, the 5%. Yes. Maybe dig into that a little bit. What are the contributors here? I assume that Finland today is a 0%. Denmark, you say will reach 5%, but I assume that Finland in that target is still in the mix. Can you talk a little bit about the contributors to that 5%? Yep. Good. A very fair question. It is correct what you're saying, Markus. We have a more positive outlook when it comes to Sweden being very close. Bear in mind, Sweden was at 3.7% in the Q1. It ended the year for the full 25 years, Sweden were very close to 4%. Q4, close to 5%. Metrics. We feel confident that Sweden will reach 5%. Starting with Sweden, I will cover the two other countries. For Sweden, I think it's about utilizing the market presence. Let me say two things about that, what I mean. With the presence throughout Sweden, we have for a year or two now been able to utilize what we call the cluster strategy. When Per says that we are moving from countryside inland to more urban, more dense, highly trafficked areas, that is a strategic choice. We're moving Terranor into clusters where we can do more, when we really get the benefit of the can do, want to do more mentality. That in combination with more investments coming in to our largest client. This is now a political decision, but there is a vast majority, I think, across from throughout the political spectrum. Everybody agrees that now is the time to fix Swedish roads once and for all. For us, being present where we want to be present, having the cluster synergies, doing more with the same people, having higher utilization in an era that is coming with more money coming into this sector. I think that for sure will drive profitability in Sweden. Looking at Denmark, Markus. Okay. I have to mention Denmark. Having the foundation of the four summer contracts on better terms than before. Also, again, utilizing the presence of the state contracts going into municipalities and winning as we have now, both Tønder Municipality last year, Ikast Municipality just recent. That is also proof of Terranor using the market platform and doing more. I think that will be the big driver and also of course, client investments. The market needs or the society needs for what we are doing. I think that is key. We'll come back to several of these points, but maybe staying on Sweden for just a second. Yep. You've been at above 5%. You were 5.5% in 2022. Yep. Now you get this cluster strategy, you get more scale. Would you say that the target, the 5%, is for Sweden a bit conservative? How would you put it? I wouldn't say conservative. I would say that it's a target that we feel confident about. I would not call it conservative in that sense. Historically, 5% has been really tough to reach in this market. I think we are moving into, I call it an era, because an era is 10 years or more of continuous increasing investments into this. I think that presents a new scenario for companies in this line of business. I also think that the strategy of being disruptive, tendering on everything, in combination with our ability to set up organizations, being able now to attract the best people in our line of business, that is very important. Also on Finland, before we move on. Finland is now at zero-ish, a little bit above or a little bit below, depending on quarter and year, but it's around zero. Does the 5% assume that Finland will come back up, or does it assume that the others will carry Finland as well? Yeah. To be very transparent and true about the answer, in this time period, up until 2028, we have a humble low outlook when it comes to profitability in Finland. It has to do with, being in a market where you have long contracts, the positive side is you have a strong transparency visibility. You can see the contracts a long way. Inka said record high backlog of currently past SEK 7 billion. Well, all of these are good things. The downside is you cannot change the dynamics or the structure in your backlog overnight. Changing the situation, bringing Finland up to 5%, it has to come from finishing the old contracts that were taken on challenging margins, replacing them with new contracts. That will take over this timeframe. I would say, if I were to put numbers on it, we expect Finland to be continuously making money, but small numbers. Up until 2028. In that sense, you are very much correct in assuming reaching 5% on a group level means Sweden needs to be above 5%. Simple as that. Per knows this. Yes. Per and me wouldn't be agreeing, or the board wouldn't be agreeing on 5% if we didn't strongly feel that it's doable. Any questions from the floor? I will continue. Maybe a little bit on Sweden. Looking at the structural differences of the market, maybe going back again to 2022, where you had the highest margin. You still had the highest margin in Sweden, and then it was a bit lower in Finland and Denmark, and the lowest in Denmark. Is it structural? That is, are there any structural differences apart from scale which should make one market be more profitable than the other? I sense two, maybe three questions in it. I will start with the external factors. I think for sure there are market drivers that affects the ability for any contractor to what margins can be expected. That goes towards a lot of things. I think society needs political ambitions for one, since we are predominantly working with state roads, municipalities the same way. How much funds are state and municipality willing to put into this line of business? I think that puts somewhat of a limit, or at least gives a limitation to what you can gain. Looking at Sweden and Denmark, we see higher prices continuously. We see more investments. I think Finland, the state market, we said it before, prices are challenging on the state side but m ore favorable on the municipality. I think that is one part of the answer. There are macro factors or market factors that has a limitation. Secondly, our own operations. I would say that, yes, I heard you say 2x now, so I will answer you to it. Sweden had a 5.5% margin in 2022. Why it declined? I think, being honest and just straight out, I think why it declined was a proof of an organization that perhaps wasn't quite ready for that rapid growth. Taking on contracts that proved to be more challenging, that is what you typically see when you're working with percentage of completion, you take out profit throughout the contract period. One, we're ambitious in the beginning and paid the price for it since it declined. I think what we are seeing now, the past two years in Sweden, is a very much more stable business. Taking on contracts. Delivering on the tender margin, delivering above the tender margin. If I only had one quarter to bear proof of that, I wouldn't be that confident. Now I've seen it consecutively for two years. Winning contracts, also delivering on the contracts. That was not the case in the early days for Terranor. That is my flat-out answer on the margin declining, now picking up, and why I think 5% definitely is reachable. It has to do with organizational stability and how we are more stable and steady in the operations today. Maybe staying a little bit with the contracts. You just came out of tendering season. You had a strategy. We've talked a little bit about clusters. You can have a strategy, but then you put in a price and there's a bid. Was it in line with expectations? Yes. Yes, it was. I was very happy. We were very happy. We gained a lot more in volume than we came in with. Supporting that we are actually being able to stand here today and say SEK 5 billion is within reach. The foundation for that is the volume that we are gaining in the tenders. Why I hesitated, to be honest, I was close to really angry about the near misses because we tender on everything. We felt very confident about the tender strategy. We have the cluster strategy, meaning that in some areas where we can have a higher utilization, we can also be more ambitious on the margin side because we will gain from other things. We had organization in place for some contracts where we, of course, wanted to stay. Again comes the discipline. If somebody underbids you, that is what can happen. You need to just be okay with it. We had seven near misses, five of them were within 2%. 2% is nothing in our line of business. That's like an error calculation. In that sense, we could have been even more winning in this tender season. We are where we should be, and we're not looking backwards, we're looking forward. A lot of opportunities with municipalities and the cluster strategy. Overall good. Looking forward, you've already started to work on the 2027 tender season. What do you bring back for 2026 that you will change, or will you change anything in 2027? I can't spoil everything. I know time is limited here, but I will say something about the overall tender season in Sweden. I think prices were a little bit more all over the place than it has been before. We won Malmö contract. Malmö, of course, being third largest city in Sweden, is a large contract. We were the only bidder. For us, having understanding of that competitive situation, of course, it would have been beneficial to say it like that. Understanding more about where the competitors are and coming closer to the runner-up, the second. That is definitely doable. It goes towards putting more intelligence, analysis into understanding our position versus the others. Do you feel that was price discipline kept throughout, not from you, but from the other players? Yeah. What is your feeling? I will answer you like this. A large portion of the purpose of tendering everything is game theory. If we remain true to our tender discipline, we affect what we can affect, but we cannot affect the uncertain. That is the fluke factor of somebody doing crazy stuff. We know that they will not be able to do fluke things on all contracts. For us, staying disciplined, tendering on everything, on what we think is good for us will ultimately take us to our goal. I was surprised about some prices, but that's the unknown. We cannot affect that. I get a question from the audience about When you look at the combined backlog of the work you have, so coming back to the EBITDA margin target that you have, what is the visibility? That is, because a lot of the contracts are already in the books, how certain can you be? Of course, there's assumption in here, but what is the visibility, I guess is the question. High. I will answer like this, and I will be looking at Per now if Per will come up here and need to help me. After a full year of operations, we have high visibility on the coming margins for the coming or remaining three years. The proof of concept you see after first year of operations. Now we have almost a year in this contract starting 2025. For them and the other contracts that are older, really good. Taking the same example with Denmark, four out of five of the summer contracts we continued. Of course, we feel confident because the roads fundamentally doesn't change from one year to another. The activities fundamentally don't change. You will be doing repeat. That gives a ceiling, a security. What can affect is, of course, climate over the winter, but the way we tender throughout the company, we mitigate the winter or the climate effect in how we put prices on the winter season. Really, even with the harshest of winters, we cannot be that hurt from a climate effect. On the positive side, what will have a positive effect is the amount of swellings and extra work. Looking at contracts now, we see an increase of swellings and extra work. That again goes to the can-do mentality. We have tendered all of the contracts to be able to do more in the contracts. Short answer to your question, yes, we have a good visibility when it comes to margin after the first-year cycle of operations. I have some questions actually on the swellings and the extra works. First one is maybe that you do see in the contracts that you have, you see an increase in the swellings and extra work, and I guess part of that is the budget that you're seeing. First, are you also seeing higher volumes in the base contract, especially the ones that are being tendered now on the back of this? Yes. It's an increase across the board? Yes. It doesn't necessarily show up when you are comparing, and I know that you are, Markus, comparing the tender prices compared to four years ago, there you might not see it, but if you see what we see looking at the contracts, we see definitely an increase of swellings throughout the board. I mean, for every contract. I think it's driven of an ambition, of course, of handling the maintenance deficit. That is one. I think it's very much driven of us being considered as a provider of quality services because if we weren't in that position, nobody would order additional work from us. I think we have positioned ourself in order to be chosen for having the ability of doing more in the contracts. It's a combination, our ability and the client needs. Staying on the extra works, this question, can you talk a little bit more about volume distribution? What kind of contribution margin and resource planning do you have on these extra works? I understand if you don't want to give a direct answer on the margin differences because it's sensitive, but maybe you can just talk around it a little bit. You've said before that they are higher, so we know that. I will answer like this. Again, what we can affect and what we cannot affect. Client ordering is on the client. We can put ourselves in a position where we can be chosen. What I'm saying is that for us to guide on 5%, that is on the things we know will happen. We cannot take a bet and say, Yeah, we will reach 5% if we get all of this from the clients. That is not how we tender. We tender to reach 5% on what we feel sure to happen or certain to happen rather. Again, not downplaying anything. What we have seen the last couple of years is an increase, and there are only so many contractors that is able to do this. When you are in the base contract and have proven yourself, it is natural for our largest client to utilize that base contract to also handle other things that is needed within the contract. Maybe stay on one thing that you said here, the competitive landscape, because we know in Sweden at least, that there is three big players, and then there are a couple of more. What is the competitive landscape like in Denmark and Finland? Is it similar? Kind of, starting in Denmark, few competitors, nobody in the size or in the market dominant position as in Sweden. I would say that in Denmark, Terranor is in one sense market leader since we have 80% of the summer contracts. In one way, the contracts that we are targeting in Denmark, we are actually targeting them from a market-leading position. That is not the case in Sweden. I would say if something, we are the challenger. Again, we are up against large competitors in Sweden. They have been around for a long time. I think we have an advantage of being more specialized, of simply, this is what we do. We are going to get really, really good at doing this, and we will prove that to the client so that we are the first choice for the client. That is definitely the advantage in Sweden out of a competitive landscape. You have more or less a mirror of the Swedish landscape. There is one, two really large companies. They're also into construction, infrastructure, they are diversified. It's a mix. In all three markets, I think that definitely Denmark, Sweden, today, we are highly competitive. Finland, for many reasons, it's tough. We need to both strengthen our own operations and also consider how fast we move in that market. Mm-hmm. Maybe staying a little bit with Denmark, because so you do have four out of five summer contracts. You had all of the summer contracts, but those are not the only state contracts. You've spoken a lot about municipalities, but what about the other types of state contracts? First of all, number one, I guess, is do you bid on everything there as well? Or do you plan to bid on everything else? No. We are more selective in Denmark because I would put it like this. In Sweden, you need to be really good at handling year throughout year operations. In Sweden, we have built the entire operations to do that. In Denmark, being really strong in summer activities, meaning that we would be reluctant to go into too much of winter activities simply because we don't have that experience, that knowledge. Some of the winter activities or winter contracts is interesting. In the municipalities, you will have winter activities as well because they are throughout the year. I think that the contracts most favorable for us in Denmark are the ones that are closest to the summer contracts, what we are doing. I think you will definitely find them. You can find them in, let's say, road barriers or defense facilities, much more similar to what we are doing in the summer contracts. I just single out two examples. There are many more in the market situation as it looks in Denmark. Should we expect for you to bid on more state contracts as well, or do you plan to focus on municipalities? A combination. Combination. Yeah. All right. Yeah, Albin. Hello, Albin Sandell, SVT Markets. Two questions. First on the Finland outlook, it seems, Mikael, you're happy with reaching a sort of solution, you were saying. When do you expect that to happen? Sooner rather than later, as always. The uncertainty is not good for the company. It is not good for anybody. Ultimately, like this, we feel we have a strong position in this. The claims we have directed, we think they are fair, we think they are just. We have legal support from two independent legal advisors supporting that. Being rushed and accepting something that is too far away from what we think is fair will not be the case. We will stand our ground. Hopefully, it will resolve itself in a short time period. If not, we will continue doing what we are doing, getting new tenders, new orders in, and it will be resolved. Yeah, that is unfortunately, Albin, I cannot affect what the other party is thinking or doing. Just underlining, this is not a case that we easily would walk away from because we strongly feel that we have a strong position. It's not like you have a firm timeline on next meeting with the counterpart or anything like that? No. Okay, the final question I have is just on the capital distribution side. I guess you're saying at least a 50% dividend payout, but you also refer to very capital light business model. I guess the question is why isn't it higher than the 50%? What is needed in the operations for the remaining part of the cash? I think that, first of all, being resilient and robust in our operations, having the seasonality within the cash flows, we need a buffer, not for investments, perhaps, or having a larger CapEx need than today, but simply just allowing the company to be self-preserved and handling the seasonality effects of the cash flow. That is one answer. Secondly, I would say being a fairly newly listed company and making promises, I think it's way much more important to deliver on those promises before we are too ambitious. The targets we have in the market today, we feel very confident that this is a level that we are fine with. A twofold answer. We feel confident that 50% is also good for the company, good for the business, and it's also something that we feel can be delivered on over time. Thank you. Maybe a follow-up to Albin's question about Finland and the dispute that you're in with Väylävirasto. Is it contract by contract? That is, the contract that expire now in 2026, are they different than the one in 2027, or will it be lump decision? There are differences. We are talking about the contracts that we took on 2021. They are expiring 2026, 2022 to 2027, 2023 to 2028. There are smaller variations in the contractual setup. Our base for the claim are essentially the same. You are 100% correct. Our claims are individually towards nine contracts. What we have directed is nine individually separate claims. Of course, that can be a one for all solution if it's suitable for us, if that is what we want to do. We are not there yet, so we are still considering it to be contract by contract claims. Yeah, the overall base for the claims are to a high degree the same. Yeah. Would you say that, we're staying in the margin target, let's say that everything works out and your claim is approved and such, and you start bidding on contract the same way. Coming back to the previous question about margin potential. Is the margin potential to go back to the levels? Will it be able, in your view, to contribute to the 5% target In Finland? -in Finland as well? It has to be. Yeah. That is the short answer, but also the very true answer. For us, the entire group needs to provide to the growth rate, the profitability, and like I said, it might sound harsh, but that's the discipline of it. All the business divisions needs to provide to the overall targets. Right. A couple of more questions from my side. Maybe going back to the contract that we've seen, especially in Sweden, because we've seen a couple of interesting changes as of late. First of all, you have different types of contracts coming in, for instance, in Sundsvall. Maybe what does that mean, and what does it mean for profitability, and what are your expectations, and will this continue? Four questions at least. I think starting from the back part, moving more into collaboration contracts is good, because in a price competition situation, a lot of risk would ultimately be put on the contractor, and we would mitigate that by putting in higher prices, but it will still be risky. I think ultimately it would be bad for safety and the road structure and for the society at large. I think going into a more collaborative business environment with the largest client is good. If, and I have some experience of this, if you have a joint understanding of what it means to be in a collaboration contract. Where we are today with Trafikverket, I have never experienced us being in a better situation with Trafikverket, better in the sense that we have, from my level, Per level, we are talking about the same things now. We are actually all parties moving towards really handling the maintenance deficit. I am in favor of more collaborations. We have one in Bräcke that has been very good for us. You asked about profitability in these contracts versus other contracts. There are two phases. First of all, the first phase. That is where you set up all of how the contract will be carried out. For Sundsvall, that work is ongoing now. It will take a year, but we will come to a situation where we feel comfortable and the client will feel comfortable. For Sundsvall, a little bit early to say exactly what the profitability will be. Ultimately it will reduce risk for us and will create, in the end, better roads for the society. You also have another type of contract. You have seen contracts being broken out. You take part of the tasks in certain contracts, you break them out nice, and you tender for those. Yeah. Do you also expect these to increase? You won a couple of those as of late. Of those types. We do believe those will increase. I am not a really big fan of talking about competitors. One part of the answer is competitors' behaviors. Per took an example where we went to an adjacent contract, not run by us, run by the market leader, not name-dropping here. If a contractor doesn't have the, "We want to do, we can do, we'll do," the client will put that out to somebody else. It goes towards, does the existing base contractor provider really want to do the extra work, the swellings? I would be disappointed if that happened in any of our contracts. What drives it is the needs of the client. Per also had an example where cracks in the surface, but the real problem were meters down below. Of course, if you don't want to just put bandage on really big problems, the client will need to go to the root causes and fix the problems there. Meaning that, yeah, they want more done from the base contract provider. It's more about, we see that as an opportunity. Just to understand, the contract that Per was referring to, did they come to you or was it a tender for that? They come to us. They came to you? Yeah. Okay. I have a final question here from the audience about the oil price. Because if you can just explain a little bit about the indexation of the oil prices and also if the oil price would come back, would then that be supportive for your margin or so does it work both ways? Short answer, it would be neutral. On a detail level, it's not a one answer fits all, the short answer is yes, we have indexes in, I would say all state and municipality contracts. That is how the contracts are set up. It works in different forms. In Sweden, you have index measured on a monthly basis, and then on a yearly basis, or is it two times per year, you get paid retroactively. In some other cases, it's done in a different way. When we do the scenario analysis, we feel that on this level where the oil prices are now, if it's not prolonged over 2026, we have sufficient protection to not deviate from the targets that we just presented. If the prices were to come down, index would come down as well. We are not expecting to make an arbitrage of having oil prices come down. Short answer, on this level, we have protection. No, we will not significantly benefit from prices dropping, but it would be good from a more macro perspective because it would take a lot of uncertainty away, of course. That's not really for our business. Any final questions from the floor? I think in that case, I want to thank you guys again for coming here and thank you very much for coming here to listen and for everybody online, thank you very much to you as well. Thank you.