Lifco — Call Transcript 2026

Welcome to Lifco Q1 report for 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing pound five on their telephone keypad. Now I will hand the conference over to CEO Per Waldemarson and CFO Therése Hoffman. Please go ahead. Thank you, and good morning, and welcome to the Lifco Q1 conference call. We can start with moving in directly into slide or page number 2 in our investor presentation and take a look at the overall performance in the quarter. If we look at Lifco overall, we are presenting a stable quarter with 4% growth in sales, 6% growth in EBITDA, and 8% growth in net profit. In the quarter, acquisition contributed with around 8% to our sales growth. We had a negative effect from exchange rates of around 5%, and organically, we grew with around 1% in the quarter. I think here, talking about organic growth, we should also take into consideration the record-high sales we had in quarter one 2025 that we now had to meet, and we could not meet those numbers, and that has to be taken into consideration that we are having a decline in our sales in the Contract Manufacturing, which basically means that many companies in our industrial side had a better start to 2026 than the start they had in 2025. We will come back to that a little bit more later. We can then move into page number 3 and look into the different areas. If we start with the Dental field, we had overall a stable development in sales and despite the negative foreign exchange rate also there. We have in the quarter a positive mix effect, where higher-margin companies with own manufactured products developing stronger than the distribution companies, and this leads to better margins than last year. It's basically a product mix effect. Also, acquisitions that we have carried out during 2025 and early 2026 are contributing with slightly better margins. That's the explanation for the EBITDA margin ending up at 23%. If we then go further down to Demolition & Tools, sales was overall stable on the high level for the business area. We have obviously here also a negative foreign exchange effect on the sales levels. We had a slight decline of 3.6% overall in sales. I would like to highlight here, also here we had in Q1 2025 very strong margins in this area. In Q1 2026, the current quarter margin is lower, in particular due to weak market conditions in our demolition robot segment, which is resulting in a negative product mix in this area. I would also like to, as I usually do, highlight that the margins in this area tends to be quite volatile between quarters. We have seen that historically, but the key point here is that we had a weaker market development in Demolition & Tools, meaning that it was overall quite stable in sales for the other parts of this segment. In Systems Solutions, we have, despite also the negative foreign exchange effect, some strong growth of 9% in sales due to acquisitions and organic growth in all subdivisions except for the Contract Manufacturing that I mentioned previously. Once again, Contract Manufacturing had somewhat of a record quarter one year ago. We have now seen from the last, I would say 12 months, somewhat weakening from the record levels we had. This was also the case in Q1 2026. I can already now mention that unfortunately, we have limited visibility in this area, so we have to take a cautious approach going further into the year for this segment. If we go further looking at other segments in Systems Solutions, we had very strong development or strong development in Transportation Products, Environmental Products in the first quarter, which is very nice to see after some, I would say, weaker development during the whole 2025. We had some good start there. Infrastructure and Special Products had overall stable development, but both of these segments had contribution from acquisitions, making them grow. If we just end up the overall picture for Systems Solutions, if we exclude the effect from the volatility in deliveries in contract manufacturing, we're very pleased to see that the vast majority of the Systems Solutions companies had a better start of 2026 compared to 2025. We can then go further into page number 4 and just make a short statement on the information that was presented in our report this morning. From the next quarter onwards, we will organize ourselves into five business areas instead of three. This means that Environmental Technology and Transportation Products that have formerly been divisions within Systems Solutions will now be reported as business areas as of the interim report for the second quarter of 2026. Just a few comments. The change that we now are reporting five business areas comes after many years of strong growth in Systems Solutions, both through acquisitions and organic growth. Within Systems Solutions, the two divisions that we have currently, environmental technology, and transportation products, have become so material that they were reported and monitored internally in a new way. We will actually lift them up like this. I would just also like to highlight that the Dental and Demolition & Tools segments will not be affected by this change. The outcome of this is that Systems Solutions, obviously going forward, will consist of Contract Manufacturing, Infrastructure Products, and Special Products. Then we can go into slide number 8 and look very briefly at our financial position. The financial position remains very strong. Interest-bearing net debt EBITDA is at 1.1x, which is the same level as one year ago, despite a large number of acquisitions during the last 12 months. Total net debt EBITDA is also stable at 1.7x. In that number, we also include the debt for future option payments of minority holdings. This financial position means that we have plenty of room to continue doing further acquisitions. We are continuously increasing our capacity to both search and take care of new companies. The inflow of new ideas continues to be high, and I think it's increasing every year. The exact timing of when acquisitions can materialize will be a bit volatile. We have seen that historically, and we continue to see that. We are working very hard, but we also remain very disciplined in terms of the quality of the companies we want to bring into Lifco, which is way more important for the next decade than optimizing acquisition short-term. It's always a balancing act in this matter. We can go into page number 23, and given that we will, from next quarter onwards, report Systems Solutions a bit differently with two new business areas, I think it would be nice to look at page 23 now after 11, 12 years as a listed company. At the time of the IPO in 2014, Systems Solutions was a very small part of Lifco with, at the time, some low-margin operations that were, to be frank, struggling going into the IPO. The original company has done a tremendous job of improving their business, their market positions, and their margins, so we have seen some very good organic development. On top of that, maybe even more importantly, we have during the last 11 years, acquired a large number of very strong niche companies into the five different subdivisions that we have so far. Two of those divisions have now developed so strongly that we from next quarter onwards then will report them as business areas. Both Transportation Products, Environmental Products, are now areas with close to SEK 1 billion in profits, EBITDA, and with margins way above 20%. As we will look into further on when we start reporting them more granularly from next quarter, you will also learn that we have some, especially environmental technologies, some global market leading positions in many of those operations. Also the remaining part of Systems Solutions, which means infrastructure, special products, and contract manufacturing, have developed also very well over time and will together form the parts of the remaining Systems Solutions going forward. With that final remark, I would like to open up for any questions. Thank you. 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. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead. Good morning, Per, and thanks for taking our questions. I would like to start off in the Demolition & Tools business area. You said now that you've seen some weaker market developments in the quarter. I'm wondering if you could elaborate a bit more on what you're seeing and what the drivers behind the weaker markets are. Thank you, Zino. Well, if we talk specifically for the quarter, we see a relatively better performance in our attachment side compared to the machinery side, which typically is indication of a sentiment change in the market. Meaning that customers are still willing to invest in lower-ticket items, but more hesitant to invest in more expensive CapEx investment for them, for the customer perspective. That's what we see now. Obviously, the situation has been now for years and continues to be very difficult now with the global situation that we are facing and the uncertainty that continues to be high in this area. We also see if you go back to the last three years, there's been some volatility up and down in this segment, and it continues the uncertainty, you can say, given the situation we have now and geopolitics, et cetera. In the quarter, just to be clear, overall sales for the area was quite okay, but the mix effect in this quarter was the key thing. The next question comes from Dan Heimer from SEB. Please go ahead. Good morning, Per. A couple of questions from my side. Maybe starting a bit on the motivation to break out Environmental Technology and Transportation Products out of System Solutions. I suppose it's more of a way to increase external transparency rather than changing anything on how you operate internally. Is that a correct way to read it there? Thank you. Yes and no. I would say, as you know, you have been following us for quite some years. We are operating with a number of senior leaders in Lifco that are taking care of the governance of the portfolio companies, and that will not change at all because of this. It has partly to do with the external reporting, but also we have to acknowledge that these areas, and now looking back, we have now been able to find very interesting add-on opportunities in these areas. It's also part of the motivation that we can also internally monitor how we are developing a bit clearer when we report like this. You're right, it won't change how we operate internally from next quarter onwards. Same people will be doing a great job like they've been doing in the past. Yes. The next question comes from Gustav Berneblad from Nordea. Please go ahead. Yes, good morning. It's Gustav here from Nordea. I thought maybe just to ask a question here on the margin uplift in Dental, if we look year-over-year. Is it possible to give any more color on what is the contribution from just a previously announced M&A here, and what is the contribution from the mix effect? Then also, I guess you don't want to guide, but is there anything in terms of the mix that points towards a more negative mix going forward? Well, if you take the first part of the question, we see the effect is strong both organic margin because of the product mix effect and the acquisitions. It's a combination of both, I would say. Then you're right, we don't guide going forward. This is one quarter. Hopefully, we can continue to see increasing margin in the future, but we don't celebrate victory from one good quarter. Time will tell. In general, like in this regard, just mention that over the last decade, we have gradually, step by step, increased our exposure to own manufactured products, own proprietary solutions. We kept our distribution business, and they've been doing a great job in their markets, but the mix effect has been gradually changing like this. Now in this quarter, it became a little bigger effect maybe than normally, but that trend has been there for years, and we continue to have a higher appetite for more differentiated type of companies in all areas, but also in Dental. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead. Yes, one more question from my side. When I'm looking at the tables on Transportation Products and Environmental Technology, there seems to be some variations in the margin, and I'm wondering if you have anything you want to send our way that could be helpful around how to think about the margins in this business area? Can you be a bit more specific? Sorry, Zino, just so I know that I'm answering the question in the correct way. Sorry, could you repeat that back? Zino, can you just explain what variation are you referring to, just so I can answer it more specifically what you're looking for? Yes. The quarterly variations in the new business areas where you have highlighted or shown the EBITDA margins on a quarterly basis. No, but this is true in general for Lifco, that when it comes to quarterly margins, our companies, they are operating without thinking about the quarters. That can be varying, and then, of course, then on top of that, you also have some acquisition effects that can come in in different quarters as well. In some areas, like in Environmental Products- Technology, for example, in certain areas, we have some more deliveries with larger size that can also move around between quarters and impact the quarterly margins. If you look over time and take the annualized situation, then if there is a variation margin, then it has more to do with if the market has had a more tougher year. Like in 2025, for example, we had a slightly more difficult year for many of our Systems Solutions company, including, I would say, Environmental Technology and Transportation Products. Between quarters, it can be volatility. Yes, that's correct. The next question comes from Dan Heimer from SEB. Please go ahead. [audio distortion] Yeah. Hi, Per. Another question as well, maybe touching a bit on Contract Manufacturing, which we have touched upon for many quarters now, but now, of course, have very difficult comparisons. Q2, we had a little bit of easy comparisons, but would you say the level you're at right now on the sales level is that sort of representable, although I acknowledge that it can vary a bit between quarters there. It's a very difficult question, Dan, because as you know, it went up, I think, summer of 2024, then it sort of peaked first quarter 2025, and then it was a bit up and down on a little bit weaker level end of 2025, and now we're starting a bit weaker, but it's very difficult for us to give a forecast. Maybe we can say that the peak levels that we saw a year ago, we don't expect to see in the next few quarters, basically. Does it mean that it can improve or go down a little bit from where we are now? We don't know. That's the best estimate we have right now. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Yes, I'd like to thank everyone for listening, and thank you for the questions, and I wish everyone a nice Friday. Thank you.

Speaker 3: Welcome to Lifco Q1 report for 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answer session, participants are able to ask questions by dialing pound five on their telephone keypad. Now I will hand the conference over to CEO Per Waldemarson and CFO Therése Hoffman. Please go ahead. Welcome to Lifco Q1 report for 2026. welcome to lifco q1 report for 2026 For the first part of the conference call, the participants will be in listen-only mode. for the first part of the conference call the participants will be in listen-only mode During the questions and answer session, participants are able to ask questions by dialing pound five on their telephone keypad. during the questions and answer session participants are able to ask questions by dialing pound five on their telephone keypad Now I will hand the conference over to CEO Per Waldemarson and CFO Therése Hoffman. now i will hand the conference over to ceo per waldemarson and cfo therése hoffman Please go ahead. please go ahead

Speaker 4: Thank you, and good morning, and welcome to the Lifco Q1 conference call. We can start with moving in directly into slide or page number 2 in our investor presentation and take a look at the overall performance in the quarter. If we look at Lifco overall, we are presenting a stable quarter with 4% growth in sales, 6% growth in EBITDA, and 8% growth in net profit. In the quarter, acquisition contributed with around 8% to our sales growth. We had a negative effect from exchange rates of around 5%, and organically, we grew with around 1% in the quarter. Thank you, and good morning, and welcome to the Lifco Q1 conference call. thank you and good morning and welcome to the lifco q1 conference call We can start with moving in directly into slide or page number 2 in our investor presentation and take a look at the overall performance in the quarter. we can start with moving in directly into slide or page number 2 in our investor presentation and take a look at the overall performance in the quarter If we look at Lifco overall, we are presenting a stable quarter with 4% growth in sales, 6% growth in EBITDA, and 8% growth in net profit. if we look at lifco overall we are presenting a stable quarter with 4% growth in sales 6% growth in ebitda and 8% growth in net profit In the quarter, acquisition contributed with around 8% to our sales growth. in the quarter acquisition contributed with around 8% to our sales growth We had a negative effect from exchange rates of around 5%, and organically, we grew with around 1% in the quarter. we had a negative effect from exchange rates of around 5% and organically we grew with around 1% in the quarter I think here, talking about organic growth, we should also take into consideration the record-high sales we had in quarter one 2025 that we now had to meet, and we could not meet those numbers, and that has to be taken into consideration that we are having a decline in our sales in the Contract Manufacturing, which basically means that many companies in our industrial side had a better start to 2026 than the start they had in 2025. We will come back to that a little bit more later. We can then move into page number 3 and look into the different areas. If we start with the Dental field, we had overall a stable development in sales and despite the negative foreign exchange rate also there. I think here, talking about organic growth, we should also take into consideration the record-high sales we had in quarter one 2025 that we now had to meet, and we could not meet those numbers, and that has to be taken into consideration that we are having a decline in our sales in the Contract Manufacturing, which basically means that many companies in our industrial side had a better start to 2026 than the start they had in 2025. i think here talking about organic growth we should also take into consideration the record-high sales we had in quarter one 2025 that we now had to meet and we could not meet those numbers and that has to be taken into consideration that we are having a decline in our sales in the contract manufacturing which basically means that many companies in our industrial side had a better start to 2026 than the start they had in 2025 We will come back to that a little bit more later. we will come back to that a little bit more later We can then move into page number 3 and look into the different areas. we can then move into page number 3 and look into the different areas If we start with the Dental field, we had overall a stable development in sales and despite the negative foreign exchange rate also there. if we start with the dental field we had overall a stable development in sales and despite the negative foreign exchange rate also there We have in the quarter a positive mix effect, where higher-margin companies with own manufactured products developing stronger than the distribution companies, and this leads to better margins than last year. It's basically a product mix effect. Also, acquisitions that we have carried out during 2025 and early 2026 are contributing with slightly better margins. That's the explanation for the EBITDA margin ending up at 23%. If we then go further down to Demolition & Tools, sales was overall stable on the high level for the business area. We have obviously here also a negative foreign exchange effect on the sales levels. We had a slight decline of 3.6% overall in sales. I would like to highlight here, also here we had in Q1 2025 very strong margins in this area. We have in the quarter a positive mix effect, where higher-margin companies with own manufactured products developing stronger than the distribution companies, and this leads to better margins than last year. we have in the quarter a positive mix effect where higher-margin companies with own manufactured products developing stronger than the distribution companies and this leads to better margins than last year It's basically a product mix effect. it's basically a product mix effect Also, acquisitions that we have carried out during 2025 and early 2026 are contributing with slightly better margins. also acquisitions that we have carried out during 2025 and early 2026 are contributing with slightly better margins That's the explanation for the EBITDA margin ending up at 23%. that's the explanation for the ebitda margin ending up at 23% If we then go further down to Demolition & Tools, sales was overall stable on the high level for the business area. if we then go further down to demolition & tools sales was overall stable on the high level for the business area We have obviously here also a negative foreign exchange effect on the sales levels. we have obviously here also a negative foreign exchange effect on the sales levels We had a slight decline of 3.6% overall in sales. we had a slight decline of 3.6% overall in sales I would like to highlight here, also here we had in Q1 2025 very strong margins in this area. i would like to highlight here also here we had in q1 2025 very strong margins in this area In Q1 2026, the current quarter margin is lower, in particular due to weak market conditions in our demolition robot segment, which is resulting in a negative product mix in this area. I would also like to, as I usually do, highlight that the margins in this area tends to be quite volatile between quarters. We have seen that historically, but the key point here is that we had a weaker market development in Demolition & Tools, meaning that it was overall quite stable in sales for the other parts of this segment. In Systems Solutions, we have, despite also the negative foreign exchange effect, some strong growth of 9% in sales due to acquisitions and organic growth in all subdivisions except for the Contract Manufacturing that I mentioned previously. Once again, Contract Manufacturing had somewhat of a record quarter one year ago. In Q1 2026, the current quarter margin is lower, in particular due to weak market conditions in our demolition robot segment, which is resulting in a negative product mix in this area. in q1 2026 the current quarter margin is lower in particular due to weak market conditions in our demolition robot segment which is resulting in a negative product mix in this area I would also like to, as I usually do, highlight that the margins in this area tends to be quite volatile between quarters. i would also like to as i usually do highlight that the margins in this area tends to be quite volatile between quarters We have seen that historically, but the key point here is that we had a weaker market development in Demolition & T ools, meaning that it was overall quite stable in sales for the other parts of this segment. we have seen that historically but the key point here is that we had a weaker market development in demolition & t ools meaning that it was overall quite stable in sales for the other parts of this segment In Systems Solutions, we have, despite also the negative foreign exchange effect, some strong growth of 9% in sales due to acquisitions and organic growth in all subdivisions except for the Contract Manufacturing that I mentioned previously. in systems solutions we have despite also the negative foreign exchange effect some strong growth of 9% in sales due to acquisitions and organic growth in all subdivisions except for the contract manufacturing that i mentioned previously Once again, Contract Manufacturing had somewhat of a record quarter one year ago. once again contract manufacturing had somewhat of a record quarter one year ago We have now seen from the last, I would say 12 months, somewhat weakening from the record levels we had. This was also the case in Q1 2026. I can already now mention that unfortunately, we have limited visibility in this area, so we have to take a cautious approach going further into the year for this segment. If we go further looking at other segments in Systems Solutions, we had very strong development or strong development in Transportation Products, Environmental Products in the first quarter, which is very nice to see after some, I would say, weaker development during the whole 2025. We had some good start there. Infrastructure and Special Products had overall stable development, but both of these segments had contribution from acquisitions, making them grow. We have now seen from the last, I would say 12 months, somewhat weakening from the record levels we had. we have now seen from the last i would say 12 months somewhat weakening from the record levels we had This was also the case in Q1 2026. this was also the case in q1 2026 I can already now mention that unfortunately, we have limited visibility in this area, so we have to take a cautious approach going further into the year for this segment. i can already now mention that unfortunately we have limited visibility in this area so we have to take a cautious approach going further into the year for this segment If we go further looking at other segments in Systems Solutions, we had very strong development or strong development in Transportation Products, Environmental Products in the first quarter, which is very nice to see after some, I would say, weaker development during the whole 2025. if we go further looking at other segments in systems solutions we had very strong development or strong development in transportation products environmental products in the first quarter which is very nice to see after some i would say weaker development during the whole 2025 We had some good start there. we had some good start there Infrastructure and Special Products had overall stable development, but both of these segments had contribution from acquisitions, making them grow. infrastructure and special products had overall stable development but both of these segments had contribution from acquisitions making them grow If we just end up the overall picture for Systems Solutions, if we exclude the effect from the volatility in deliveries in contract manufacturing, we're very pleased to see that the vast majority of the Systems Solutions companies had a better start of 2026 compared to 2025. We can then go further into page number 4 and just make a short statement on the information that was presented in our report this morning. From the next quarter onwards, we will organize ourselves into five business areas instead of three. This means that Environmental Technology and Transportation Products that have formerly been divisions within Systems Solutions will now be reported as business areas as of the interim report for the second quarter of 2026. Just a few comments. If we just end up the overall picture for Systems Solutions, if we exclude the effect from the volatility in deliveries in contract manufacturing, we're very pleased to see that the vast majority of the Systems Solutions companies had a better start of 2026 compared to 2025. if we just end up the overall picture for systems solutions if we exclude the effect from the volatility in deliveries in contract manufacturing we're very pleased to see that the vast majority of the systems solutions companies had a better start of 2026 compared to 2025 We can then go further into page number 4 and just make a short statement on the information that was presented in our report this morning. we can then go further into page number 4 and just make a short statement on the information that was presented in our report this morning From the next quarter onwards, we will organize ourselves into five business areas instead of three. from the next quarter onwards we will organize ourselves into five business areas instead of three This means that Environmental Technology and Transportation Products that have formerly been divisions within Systems Solutions will now be reported as business areas as of the interim report for the second quarter of 2026. this means that environmental technology and transportation products that have formerly been divisions within systems solutions will now be reported as business areas as of the interim report for the second quarter of 2026 Just a few comments. just a few comments The change that we now are reporting five business areas comes after many years of strong growth in Systems Solutions, both through acquisitions and organic growth. Within Systems Solutions, the two divisions that we have currently, environmental technology, and transportation products, have become so material that they were reported and monitored internally in a new way. We will actually lift them up like this. I would just also like to highlight that the Dental and Demolition & Tools segments will not be affected by this change. The outcome of this is that Systems Solutions, obviously going forward, will consist of Contract Manufacturing, Infrastructure Products, and Special Products. Then we can go into slide number 8 and look very briefly at our financial position. The financial position remains very strong. The change that we now are reporting five business areas comes after many years of strong growth in Systems Solutions, both through acquisitions and organic growth. the change that we now are reporting five business areas comes after many years of strong growth in systems solutions both through acquisitions and organic growth Within Systems Solutions, the two divisions that we have currently, environmental technology, and transportation products, have become so material that they were reported and monitored internally in a new way. within systems solutions the two divisions that we have currently environmental technology and transportation products have become so material that they were reported and monitored internally in a new way We will actually lift them up like this. we will actually lift them up like this I would just also like to highlight that the Dental and Demolition & Tools segments will not be affected by this change. i would just also like to highlight that the dental and demolition & tools segments will not be affected by this change The outcome of this is that Systems Solutions, obviously going forward, will consist of Contract Manufacturing, Infrastructure Products, and Special Products. the outcome of this is that systems solutions obviously going forward will consist of contract manufacturing infrastructure products and special products Then we can go into slide number 8 and look very briefly at our financial position. then we can go into slide number 8 and look very briefly at our financial position The financial position remains very strong. the financial position remains very strong Interest-bearing net debt EBITDA is at 1.1x, which is the same level as one year ago, despite a large number of acquisitions during the last 12 months. Total net debt EBITDA is also stable at 1.7x. In that number, we also include the debt for future option payments of minority holdings. This financial position means that we have plenty of room to continue doing further acquisitions. We are continuously increasing our capacity to both search and take care of new companies. The inflow of new ideas continues to be high, and I think it's increasing every year. The exact timing of when acquisitions can materialize will be a bit volatile. We have seen that historically, and we continue to see that. Interest-bearing net debt EBITDA is at 1.1x, which is the same level as one year ago, despite a large number of acquisitions during the last 12 months. interest-bearing net debt ebitda is at 1.1x which is the same level as one year ago despite a large number of acquisitions during the last 12 months Total net debt EBITDA is also stable at 1.7x. total net debt ebitda is also stable at 1.7x In that number, we also include the debt for future option payments of minority holdings. in that number we also include the debt for future option payments of minority holdings This financial position means that we have plenty of room to continue doing further acquisitions. this financial position means that we have plenty of room to continue doing further acquisitions We are continuously increasing our capacity to both search and take care of new companies. we are continuously increasing our capacity to both search and take care of new companies The inflow of new ideas continues to be high, and I think it's increasing every year. the inflow of new ideas continues to be high and i think it's increasing every year The exact timing of when acquisitions can materialize will be a bit volatile. the exact timing of when acquisitions can materialize will be a bit volatile We have seen that historically, and we continue to see that. we have seen that historically and we continue to see that We are working very hard, but we also remain very disciplined in terms of the quality of the companies we want to bring into Lifco, which is way more important for the next decade than optimizing acquisition short-term. It's always a balancing act in this matter. We can go into page number 23, and given that we will, from next quarter onwards, report Systems Solutions a bit differently with two new business areas, I think it would be nice to look at page 23 now after 11, 12 years as a listed company. At the time of the IPO in 2014, Systems Solutions was a very small part of Lifco with, at the time, some low-margin operations that were, to be frank, struggling going into the IPO. We are working very hard, but we also remain very disciplined in terms of the quality of the companies we want to bring into Lifco, which is way more important for the next decade than optimizing acquisition short-term. we are working very hard but we also remain very disciplined in terms of the quality of the companies we want to bring into lifco which is way more important for the next decade than optimizing acquisition short-term It's always a balancing act in this matter. it's always a balancing act in this matter We can go into page number 23, and given that we will, from next quarter onwards, report Systems Solutions a bit differently with two new business areas, I think it would be nice to look at page 23 now after 11, 12 years as a listed company. we can go into page number 23 and given that we will from next quarter onwards report systems solutions a bit differently with two new business areas i think it would be nice to look at page 23 now after 11 12 years as a listed company At the time of the IPO in 2014, Systems Solutions was a very small part of Lifco with, at the time, some low-margin operations that were, to be frank, struggling going into the IPO. at the time of the ipo in 2014 systems solutions was a very small part of lifco with at the time some low-margin operations that were to be frank struggling going into the ipo The original company has done a tremendous job of improving their business, their market positions, and their margins, so we have seen some very good organic development. On top of that, maybe even more importantly, we have during the last 11 years, acquired a large number of very strong niche companies into the five different subdivisions that we have so far. Two of those divisions have now developed so strongly that we from next quarter onwards then will report them as business areas. Both Transportation Products, Environmental Products, are now areas with close to SEK 1 billion in profits, EBITDA, and with margins way above 20%. As we will look into further on when we start reporting them more granularly from next quarter, you will also learn that we have some, especially environmental technologies, some global market leading positions in many of those operations. The original company has done a tremendous job of improving their business, their market positions, and their margins, so we have seen some very good organic development. the original company has done a tremendous job of improving their business their market positions and their margins so we have seen some very good organic development On top of that, maybe even more importantly, we have during the last 11 years, acquired a large number of very strong niche companies into the five different subdivisions that we have so far. on top of that maybe even more importantly we have during the last 11 years acquired a large number of very strong niche companies into the five different subdivisions that we have so far Two of those divisions have now developed so strongly that we from next quarter onwards then will report them as business areas. two of those divisions have now developed so strongly that we from next quarter onwards then will report them as business areas Both Transportation Products, Environmental Products, are now areas with close to SEK 1 billion in profits, EBITDA, and with margins way above 20%. both transportation products environmental products are now areas with close to sek 1 billion in profits ebitda and with margins way above 20% As we will look into further on when we start reporting them more granularly from next quarter, you will also learn that we have some, especially environmental technologies, some global market leading positions in many of those operations. as we will look into further on when we start reporting them more granularly from next quarter you will also learn that we have some especially environmental technologies some global market leading positions in many of those operations Also the remaining part of Systems Solutions, which means infrastructure, special products, and contract manufacturing, have developed also very well over time and will together form the parts of the remaining Systems Solutions going forward. With that final remark, I would like to open up for any questions. Thank you. Also the remaining part of Systems Solutions, which means infrastructure, special products, and contract manufacturing, have developed also very well over time and will together form the parts of the remaining Systems Solutions going forward. also the remaining part of systems solutions which means infrastructure special products and contract manufacturing have developed also very well over time and will together form the parts of the remaining systems solutions going forward With that final remark, I would like to open up for any questions. with that final remark i would like to open up for any questions Thank you. thank you

Speaker 3: 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. 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. 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 The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. the next question comes from zino engdalen ricciuti from handelsbanken Please go ahead. please go ahead

Speaker 5: Good morning, Per, and thanks for taking our questions. I would like to start off in the Demolition & Tools business area. You said now that you've seen some weaker market developments in the quarter. I'm wondering if you could elaborate a bit more on what you're seeing and what the drivers behind the weaker markets are. Good morning, Per, and thanks for taking our questions. good morning per and thanks for taking our questions I would like to start off in the Demolition & Tools business area. i would like to start off in the demolition & tools business area You said now that you've seen some weaker market developments in the quarter. you said now that you've seen some weaker market developments in the quarter I'm wondering if you could elaborate a bit more on what you're seeing and what the drivers behind the weaker markets are. i'm wondering if you could elaborate a bit more on what you're seeing and what the drivers behind the weaker markets are

Speaker 4: Thank you, Zino. Well, if we talk specifically for the quarter, we see a relatively better performance in our attachment side compared to the machinery side, which typically is indication of a sentiment change in the market. Meaning that customers are still willing to invest in lower-ticket items, but more hesitant to invest in more expensive CapEx investment for them, for the customer perspective. That's what we see now. Obviously, the situation has been now for years and continues to be very difficult now with the global situation that we are facing and the uncertainty that continues to be high in this area. We also see if you go back to the last three years, there's been some volatility up and down in this segment, and it continues the uncertainty, you can say, given the situation we have now and geopolitics, et cetera. Thank you, Zino. thank you zino Well, if we talk specifically for the quarter, we see a relatively better performance in our attachment side compared to the machinery side, which typically is indication of a sentiment change in the market. well if we talk specifically for the quarter we see a relatively better performance in our attachment side compared to the machinery side which typically is indication of a sentiment change in the market Meaning that customers are still willing to invest in lower-ticket items, but more hesitant to invest in more expensive CapEx investment for them, for the customer perspective. meaning that customers are still willing to invest in lower-ticket items but more hesitant to invest in more expensive capex investment for them for the customer perspective That's what we see now. that's what we see now Obviously, the situation has been now for years and continues to be very difficult now with the global situation that we are facing and the uncertainty that continues to be high in this area. obviously the situation has been now for years and continues to be very difficult now with the global situation that we are facing and the uncertainty that continues to be high in this area We also see if you go back to the last three years, there's been some volatility up and down in this segment, and it continues the uncertainty, you can say, given the situation we have now and geopolitics, et cetera. we also see if you go back to the last three years there's been some volatility up and down in this segment and it continues the uncertainty you can say given the situation we have now and geopolitics et cetera In the quarter, just to be clear, overall sales for the area was quite okay, but the mix effect in this quarter was the key thing. In the quarter, just to be clear, overall sales for the area was quite okay, but the mix effect in this quarter was the key thing. in the quarter just to be clear overall sales for the area was quite okay but the mix effect in this quarter was the key thing

Speaker 3: The next question comes from Dan Heimer from SEB. Please go ahead. The next question comes from Dan Heimer from SEB. the next question comes from dan heimer from seb Please go ahead. please go ahead

Speaker 1: Good morning, Per. A couple of questions from my side. Maybe starting a bit on the motivation to break out Environmental Technology and Transportation Products out of System Solutions. I suppose it's more of a way to increase external transparency rather than changing anything on how you operate internally. Is that a correct way to read it there? Thank you. Good morning, Per. good morning per A couple of questions from my side. a couple of questions from my side Maybe starting a bit on the motivation to break out Environmental Technology and Transportation Products out of System Solutions. maybe starting a bit on the motivation to break out environmental technology and transportation products out of system solutions I suppose it's more of a way to increase external transparency rather than changing anything on how you operate internally. i suppose it's more of a way to increase external transparency rather than changing anything on how you operate internally Is that a correct way to read it there? is that a correct way to read it there Thank you. thank you

Speaker 4: Yes and no. I would say, as you know, you have been following us for quite some years. We are operating with a number of senior leaders in Lifco that are taking care of the governance of the portfolio companies, and that will not change at all because of this. It has partly to do with the external reporting, but also we have to acknowledge that these areas, and now looking back, we have now been able to find very interesting add-on opportunities in these areas. It's also part of the motivation that we can also internally monitor how we are developing a bit clearer when we report like this. You're right, it won't change how we operate internally from next quarter onwards. Same people will be doing a great job like they've been doing in the past. Yes. Yes and no. yes and no I would say, as you know, you have been following us for quite some years. i would say as you know you have been following us for quite some years We are operating with a number of senior leaders in Lifco that are taking care of the governance of the portfolio companies, and that will not change at all because of this. we are operating with a number of senior leaders in lifco that are taking care of the governance of the portfolio companies and that will not change at all because of this It has partly to do with the external reporting, but also we have to acknowledge that these areas, and now looking back, we have now been able to find very interesting add-on opportunities in these areas. it has partly to do with the external reporting but also we have to acknowledge that these areas and now looking back we have now been able to find very interesting add-on opportunities in these areas It's also part of the motivation that we can also internally monitor how we are developing a bit clearer when we report like this. it's also part of the motivation that we can also internally monitor how we are developing a bit clearer when we report like this You're right, it won't change how we operate internally from next quarter onwards. you're right it won't change how we operate internally from next quarter onwards Same people will be doing a great job like they've been doing in the past. same people will be doing a great job like they've been doing in the past Yes. yes

Speaker 3: The next question comes from Gustav Berneblad from Nordea. Please go ahead. The next question comes from Gustav Berneblad from Nordea. the next question comes from gustav berneblad from nordea Please go ahead. please go ahead

Speaker 2: Yes, good morning. It's Gustav here from Nordea. I thought maybe just to ask a question here on the margin uplift in Dental, if we look year-over-year. Is it possible to give any more color on what is the contribution from just a previously announced M&A here, and what is the contribution from the mix effect? Then also, I guess you don't want to guide, but is there anything in terms of the mix that points towards a more negative mix going forward? Yes, good morning. yes good morning It's Gustav here from Nordea. it's gustav here from nordea I thought maybe just to ask a question here on the margin uplift in Dental, if we look year-over-year. i thought maybe just to ask a question here on the margin uplift in dental if we look year-over-year Is it possible to give any more color on what is the contribution from just a previously announced M&A here, and what is the contribution from the mix effect? is it possible to give any more color on what is the contribution from just a previously announced m&a here and what is the contribution from the mix effect Then also, I guess you don't want to guide, but is there anything in terms of the mix that points towards a more negative mix going forward? then also i guess you don't want to guide but is there anything in terms of the mix that points towards a more negative mix going forward

Speaker 4: Well, if you take the first part of the question, we see the effect is strong both organic margin because of the product mix effect and the acquisitions. It's a combination of both, I would say. Then you're right, we don't guide going forward. This is one quarter. Hopefully, we can continue to see increasing margin in the future, but we don't celebrate victory from one good quarter. Time will tell. In general, like in this regard, just mention that over the last decade, we have gradually, step by step, increased our exposure to own manufactured products, own proprietary solutions. We kept our distribution business, and they've been doing a great job in their markets, but the mix effect has been gradually changing like this. Well, if you take the first part of the question, we see the effect is strong both organic margin because of the product mix effect and the acquisitions. well if you take the first part of the question we see the effect is strong both organic margin because of the product mix effect and the acquisitions It's a combination of both, I would say. it's a combination of both i would say Then you're right, we don't guide going forward. then you're right we don't guide going forward This is one quarter. this is one quarter Hopefully, we can continue to see increasing margin in the future, but we don't celebrate victory from one good quarter. hopefully we can continue to see increasing margin in the future but we don't celebrate victory from one good quarter Time will tell. time will tell In general, like in this regard, just mention that over the last decade, we have gradually, step by step, increased our exposure to own manufactured products, own proprietary solutions. in general like in this regard just mention that over the last decade we have gradually step by step increased our exposure to own manufactured products own proprietary solutions We kept our distribution business, and they've been doing a great job in their markets, but the mix effect has been gradually changing like this. we kept our distribution business and they've been doing a great job in their markets but the mix effect has been gradually changing like this Now in this quarter, it became a little bigger effect maybe than normally, but that trend has been there for years, and we continue to have a higher appetite for more differentiated type of companies in all areas, but also in Dental. Now in this quarter, it became a little bigger effect maybe than normally, but that trend has been there for years, and we continue to have a higher appetite for more differentiated type of companies in all areas, but also in Dental. now in this quarter it became a little bigger effect maybe than normally but that trend has been there for years and we continue to have a higher appetite for more differentiated type of companies in all areas but also in dental

Speaker 3: The next question comes from Zino Engdalen Ricciuti from Handelsbanken. Please go ahead. The next question comes from Zino Engdalen Ricciuti from Handelsbanken. the next question comes from zino engdalen ricciuti from handelsbanken Please go ahead. please go ahead

Speaker 5: Yes, one more question from my side. When I'm looking at the tables on Transportation Products and Environmental Technology, there seems to be some variations in the margin, and I'm wondering if you have anything you want to send our way that could be helpful around how to think about the margins in this business area? Yes, one more question from my side. yes one more question from my side When I'm looking at the tables on Transportation Products and Environmental Technology, there seems to be some variations in the margin, and I'm wondering if you have anything you want to send our way that could be helpful around how to think about the margins in this business area? when i'm looking at the tables on transportation products and environmental technology there seems to be some variations in the margin and i'm wondering if you have anything you want to send our way that could be helpful around how to think about the margins in this business area

Speaker 4: Can you be a bit more specific? Sorry, Zino, just so I know that I'm answering the question in the correct way. Can you be a bit more specific? can you be a bit more specific Sorry, Zino, just so I know that I'm answering the question in the correct way. sorry zino just so i know that i'm answering the question in the correct way

Speaker 5: Sorry, could you repeat that back? Sorry, could you repeat that back? sorry could you repeat that back

Speaker 4: Zino, can you just explain what variation are you referring to, just so I can answer it more specifically what you're looking for? Zino, can you just explain what variation are you referring to, just so I can answer it more specifically what you're looking for? zino can you just explain what variation are you referring to just so i can answer it more specifically what you're looking for

Speaker 5: Yes. The quarterly variations in the new business areas where you have highlighted or shown the EBITDA margins on a quarterly basis. Yes. yes The quarterly variations in the new business areas where you have highlighted or shown the EBITDA margins on a quarterly basis. the quarterly variations in the new business areas where you have highlighted or shown the ebitda margins on a quarterly basis

Speaker 4: No, but this is true in general for Lifco, that when it comes to quarterly margins, our companies, they are operating without thinking about the quarters. That can be varying, and then, of course, then on top of that, you also have some acquisition effects that can come in in different quarters as well. In some areas, like in Environmental Products- Technology, for example, in certain areas, we have some more deliveries with larger size that can also move around between quarters and impact the quarterly margins. If you look over time and take the annualized situation, then if there is a variation margin, then it has more to do with if the market has had a more tougher year. No, but this is true in general for Lifco, that when it comes to quarterly margins, our companies, they are operating without thinking about the quarters. no but this is true in general for lifco that when it comes to quarterly margins our companies they are operating without thinking about the quarters That can be varying, and then, of course, then on top of that, you also have some acquisition effects that can come in in different quarters as well. that can be varying and then of course then on top of that you also have some acquisition effects that can come in in different quarters as well In some areas, like in Environmental Products- T echnology, for example, in certain areas, we have some more deliveries with larger size that can also move around between quarters and impact the quarterly margins. in some areas like in environmental products- t echnology for example in certain areas we have some more deliveries with larger size that can also move around between quarters and impact the quarterly margins If you look over time and take the annualized situation, then if there is a variation margin, then it has more to do with if the market has had a more tougher year. if you look over time and take the annualized situation then if there is a variation margin then it has more to do with if the market has had a more tougher year Like in 2025, for example, we had a slightly more difficult year for many of our Systems Solutions company, including, I would say, Environmental Technology and Transportation Products. Between quarters, it can be volatility. Yes, that's correct. Like in 2025, for example, we had a slightly more difficult year for many of our Systems Solutions company, including, I would say, Environmental Technology and Transportation Products. like in 2025 for example we had a slightly more difficult year for many of our systems solutions company including i would say environmental technology and transportation products Between quarters, it can be volatility. between quarters it can be volatility Yes, that's correct. yes that's correct

Speaker 3: The next question comes from Dan Heimer from SEB. Please go ahead. The next question comes from Dan Heimer from SEB. the next question comes from dan heimer from seb Please go ahead. please go ahead

Speaker 4: [audio distortion] [audio distortion] [audio distortion]

Speaker 1: Yeah. Hi, Per. Another question as well, maybe touching a bit on Contract Manufacturing, which we have touched upon for many quarters now, but now, of course, have very difficult comparisons. Q2, we had a little bit of easy comparisons, but would you say the level you're at right now on the sales level is that sort of representable, although I acknowledge that it can vary a bit between quarters there. Yeah. yeah Hi, Per. hi per Another question as well, maybe touching a bit on Contract Manufacturing, which we have touched upon for many quarters now, but now, of course, have very difficult comparisons. another question as well maybe touching a bit on contract manufacturing which we have touched upon for many quarters now but now of course have very difficult comparisons Q2, we had a little bit of easy comparisons, but would you say the level you're at right now on the sales level is that sort of representable, although I acknowledge that it can vary a bit between quarters there. q2 we had a little bit of easy comparisons but would you say the level you're at right now on the sales level is that sort of representable although i acknowledge that it can vary a bit between quarters there

Speaker 4: It's a very difficult question, Dan, because as you know, it went up, I think, summer of 2024, then it sort of peaked first quarter 2025, and then it was a bit up and down on a little bit weaker level end of 2025, and now we're starting a bit weaker, but it's very difficult for us to give a forecast. Maybe we can say that the peak levels that we saw a year ago, we don't expect to see in the next few quarters, basically. Does it mean that it can improve or go down a little bit from where we are now? We don't know. That's the best estimate we have right now. It's a very difficult question, Dan, because as you know, it went up, I think, summer of 2024, then it sort of peaked first quarter 2025, and then it was a bit up and down on a little bit weaker level end of 2025, and now we're starting a bit weaker, but it's very difficult for us to give a forecast. it's a very difficult question dan because as you know it went up i think summer of 2024 then it sort of peaked first quarter 2025 and then it was a bit up and down on a little bit weaker level end of 2025 and now we're starting a bit weaker but it's very difficult for us to give a forecast Maybe we can say that the peak levels that we saw a year ago, we don't expect to see in the next few quarters, basically. maybe we can say that the peak levels that we saw a year ago we don't expect to see in the next few quarters basically Does it mean that it can improve or go down a little bit from where we are now? does it mean that it can improve or go down a little bit from where we are now We don't know. we don't know That's the best estimate we have right now. that's the best estimate we have right now

Speaker 3: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. there are no more questions at this time so i hand the conference back to the speakers for any closing comments

Speaker 4: Yes, I'd like to thank everyone for listening, and thank you for the questions, and I wish everyone a nice Friday. Thank you. Yes, I'd like to thank everyone for listening, and thank you for the questions, and I wish everyone a nice Friday. yes i'd like to thank everyone for listening and thank you for the questions and i wish everyone a nice friday Thank you. thank you