Thank you uh and good morning, everyone. Uh welcome to this second quarter um report uh call.

Um We uh start with uh the first page, where we want to do a couple of highlights. Um I'd like to comment that I mean this is the second quarter uh where we are executing on a new strategy.

The number one priority when we introduced our strategy was how to improve the leverage and the balance sheet of the company. Uh and as you all know, uh a a huge amount of work has been dedicated to do exactly so in Q2 with the capital raise uh and the 2.4 billion portfolio sale.

Um And we have also seen the effects of that uh by Standard & Poor's and Moody's improving our credit ratings. Um The operation, sorry, the service leverage ratio on a pro forma basis has moved from 6.2 to 4 4.3.

The long-term target is 3.0. We also see that our operation transformation uh is continuing to pay off.

Uh our costs are developing according to plan. When looking at the FTEs, which is one of the things that we are working with, making our processes automated or AI-fied or just more efficient, has reduced by 8% year on year.

Our total costs are currently at the 11.9 on a rolling 12-month base uh uh 12 months basis, and the target in 2030 is 10 to 11 depending on our servicing income. Um The growth that we have in our traditional markets, we see the fourth quarter of growth.

We see actually higher growth in this quarter than previous quarters uh, but it's not sufficient to offset the decline that we have in the specialized markets. Therefore, uh given that we had a negative growth in Q1 as well, even though it was higher than Q2, we do see that it's going to be more challenging to achieve the largely flat servicing income that we want to achieve in 2026.

Uh The servicing EBIT margin remains at 25 and the target is 30% to 35%. Stable margins on the servicing.

We are now at 25. We've been at 25 for, I think, the third quarter in a row.

Um and we have uh good organic growth in the traditional markets. Uh We maintain the strong cost discipline, but we will now accelerate on the cost side.

We will accelerate our progress uh or sorry, our our operational excellence program uh, and we will include more countries going forward. We have five countries right now that operates under it, and we will uh see how many countries we will have by the end of the year, but it will be a material increase versus today.

To illustrate a little bit more the dynamics around our external servicing servicing income, um you can see here that first of all, the Servihabitat consolidation, it moves basically external income to internal income. We have a minus negative one there on a uh year-on-year comparison.

The specialized markets, they go down 4%, of which organic growth is six. The traditional markets, they help 2% up on a total basis with an organic growth of 5%.

Um The decline, as we discussed many times before, is in particular in Greece and Spain and partially in Italy. Then UK has a performer that is impacted by slower and delayed new sales.

It's actually slightly different dynamics depending on which country you look at. In the traditional markets, which is 45% of the income, we have organic growth of 5% uh, and most of them are growing.

We have a couple of top top contributors. We do, however, see um a challenge right now in Germany, where we have had issues both with onboarding of new clients, which has been taking much longer than expected.

We also have a bit of uh performance challenges with the exis- some of the existing uh clients. We're doing a transformation to get this fully in line, and there's um could be more potential on how we stabilize that going forward.

On the operational excellence program, uh we launched this in Q1. Um It is essentially a group-led program where we um execute locally.

Uh and we move the traditional bespoke model into the next gen, which is much more standardized, which is automated and where we have a lot of AI support to make it as efficient and effective as possible. Um We have an ambition to significantly increase the efficiency.

We have on the FT-based cost base in scope a 30 to four- 35% to 40% ambition over the next three years. Um We utilize all the new technologies, but we also use all the technologies uh to make sure that we get the best possible outcome.

We spend a balanced amount versus the outcome that we expect. Performance management is obviously very important when we then start tracking our lower cost to collect.

Uh The good thing is that the the the the identified savings uh are actually exceeding the ambition, we see that the impact could be bigger than we anticipated from the beginning. Uh But we will now, as said, accelerate this, expand it, and do more countries in parallel.

Um We center this, and I think we talked about this in Q1. There are three different buckets that are material and that's where we focus.

It's document management. It's email management or email automation.

It's uh also around how we deal with calls. Um and everything not everything, but a lot of things that we try to build are things that we can then scale across the different markets that we have.

We don't build a bespoke solution. We build generic solutions, we implement them locally, and then we export them to the next country to get the scale and the synergies uh in the group.

Investing, we haven't talked much about uh, but we did 197 million, uh which is according to the previous uh ambition. We did it at the 19%.

We are still very disciplined in our execution. Uh and the collection um has been 102 in the quarter versus 10- 100 in Q1.

What you see on the page is the uh rolling 12 months. Um So the collection has actually improved Q-on-Q.

Um And, of course, now we need to ramp up with the capital raise. With increased financial flexibility, we have an ambition to make these volumes higher, uh and we are already working on a number of interesting deals uh, and we're are confident that they will materialize in the second half.

With that, I'll hand over to Massi to go take you through the financials.

Thank you, Johan, and uh good morning, everyone. Um I think Johan has gone through the highlights, but just to mention a couple of things.

Obviously, income is coming down, both on the back of negative growth in servicing, as well as the decay in the investment book. Uh Obviously, the plan going forward is to change trajectory on both of those by investing more and at some point, getting organic growth uh in the servicing business.

Uh I would comment on the cost side. It is down 2% year on year.

Um It was down more in Q1. Uh One thing to flag there is that the consolidation of Servihabitat um is leading to about 100 million higher costs this quarter compared to Q2 last year.

I think that's something you should expect for the full year, that it's going to be around that level um per quarter, uh which means that um the cost level, uh we are on track on the plans we have and we will try to offset parts of this. Nevertheless, moving uh Servihabitat from the JV line to the income and cost line leads to this impact on the cost side.

On the underlying development, we are fully on track with the plans and the targets we've set for the full year. Um I just mentioned also on the numbers that on the net financial expense line, we have a reversal from Q1 of about 300 million, which is helping that line.

Also, as of May, we are doing hedge accounting on the FX swings we have. In Q2 and also going forward, um the FX effect uh on our debt and the net financial expense line will be less than it has been historically.

I think if you take Q2 as an example, we've offset about 400 million of FX swings that otherwise would have materialized on this uh on this um line. On the tax expense, it's a bit elevated this quarter.

That's related to a tax uh one-off tax expense in Italy that is uh part of a tax audit uh that dealt with the previous eight years. Um So back a few years, uh that's a one-off cost of almost 100 million in the quarter.

Uh We're showing a positive net income uh, which is obviously good, um but uh the ambitions are clearly higher for the future. On the servicing side, um I mean we've gone through most of the numbers.

There is a negative uh -3% uh fully, but the organic growth is -2. Um And the Servihabitat consolidation is -1, and FX is neutral in the quarter.

Uh On the cost side, that is coming down um in line with the total income. Um So, which means that overall, year on year, if you look at the running 12 months, margins are stable at 25%.

Um Obviously, given that it's a bit more challenging on the top line on servicing uh to have the margin improvements that we're looking to get until 2030, we need to do a bit more on the cost side to keep this stable and moving in a positive trajectory. Um And as Johan said, we see growth in traditional markets.

That growth is higher than it has been in last few quarters, but it's being more than offset by the specialized markets for now. On the investing side, um same kind of trends we've had previously as we keep having less new investments compared to what is amortizing, which means that we have a headwind on the income side.

Uh Going forward, we are planning to increase the investment pace and uh at some point, offsetting that headwind. I think uh it will probably We see a better deal flow now.

We see that we are engaging in more investments, but it will take a couple of quarters before you see uh that coming into the numbers, as there is a delay between uh engaging in new investments and getting those signed and onboarded. You should expect that it will take a couple of quarters before you see the investment pace actually picking up in the numbers we report.

Um Also, obviously, due to the fact that there's been summer months and the capital raise was just um uh executed in July. Um And as Johan said, obviously, 194 million, uh 97 million of new portfolio investments, high blended IRR.

Obviously, with the higher investment pace going forward, it's very likely that the blended IRR will start to move downwards, but we will be disciplined in our execution and we will make sure that the IRR um is nevertheless uh clearly above the cost of funding that we have, specially when we take into account the co-investments we do with Brock, where we typically get servicing revenues as well and we look at consolidated IRRs, including both the investment revenues, as well as the servicing revenues. That's it from me.

I'll ask Johan to summarize the quarter before we open up for Q&A.

Wrapping up. Obviously, the highlight of the quarter was the capital raise and uh the portfolio sale, uh even though both of them uh finalized fully uh beginning of Q3.

Uh We have the continued headwinds in the specialized markets, and we're working there to make sure that we can protect as much of the bottom line as possible. Uh It will be more challenging, given the uh Q2 results, to achieve the largely flat servicing income in 2026.

We are accelerating our operational transformation, which is also uh I think a tool in order to improve our growth trajectory going forward, because the more competitive we become, the more attractive we become from the commercial standpoint. Um Servicing income outlook is slightly behind plan.

We have stable, adjusted EBIT margins, and the quarterly collection index is higher this quarter than before. It's above our active forecast.

The investment pace is increasing post the capital raise. I think with that, we can open up for uh questions.

Thank you, and good morning. Uh So, my question is uh regarding servicing, in particular in Greece and Spain, as you highlighted as um challenging.

Uh Could you talk about how you view these challenges as temporary or are they more structural issues that you believe can continue into 2027? Uh as we we have talked about this before, but before you have yet uh said that you expect servicing to be flat uh and in 2026.

Now now you are a little bit softer on that guidance, do you still think that this can turn around, or or how should we think about this in to going into the second half of 2026? Um I mean

the fundamentals of the business in Spain and Greece are different. In Greece, we have uh a big platform on the back of uh the Greek crisis.

We're working with one of the main banks in that country. Here in Greece, it's very much around making sure that we operate more efficiently uh and we protect the cash flow.

Uh Th- There's a limited amount of new business to be made at this point. It could change.

In Spain, uh there I think there's two dynamics. One is, we do have a big exposure towards the real estate, and we're servicing a big real estate portfolio.

We're with where the biggest real estate servicer in the country. As we all know, the real estate crisis in Spain is behind us, and the real estate market in Spain is booming, which means that we are very successful in executing on our servicing uh mission.

The more we sell, uh the less uh sales we have ahead of us. On the real estate side, it's about, again, also restructuring and right-sizing that or that operations.

Then on the NPL side, we do have room to grow. Uh but we will not be able to offset the real estate decline with the NPL growth in the short run.

Um However, um so so those basically those are the dynamics, and that's nothing new. That ha- that has been the case now for for a longer time.

That's how it looks like. Um And then and then the other markets, uh there we have definitely room to grow, and we are growing.

Um And then, as we said in the report, UK and Germany uh are two markets where we have been underperforming and we need to turn that trend around.

Thank you. Uh And then my next question would be a little bit on this investing side.

You in On the slide, you highlighted, Johan, that you saw interesting deal on the pipeline. Uh Could you elaborate uh what makes them interesting and what you are primarily focusing on when you're going to allocate this uh capital from the capital raise going further?

Are you is it portfolios or are you more focused on co-investments? Could could you give some color there, please?

Uh It's both. We will continue to uh co-invest.

Uh we are working a lot with our main partner, Brock. Uh And we also closed a deal in Q2 in Hungary with a co-investor.

We think the Hungarian market has potential. Uh after the change of government, uh we see that there are some reforms that can open up the investment space even more.

Uh But in general, we have a uh we've always had an ambition to invest, but we've had limitations in terms of prioritizing our cash flow uh and our CapEx. Now we have much more flexibility, um I wouldn't say that we are doing anything fundamentally different.

It's just that we can be a much more forward-leaning in our investment approach uh, but we will stay still stay disciplined. It'll be a mix of doing our own uh and doing with capital partners.

Uh And I think the major difference is that now we can actually do larger deals with some of our bilateral partners on a standalone basis if we think that there's an attractive return. Those are the type of deals that we try to uh sort of re-source before and keep the servicing.

Now we can actually bring them on our balance sheet.

In terms of geographical mix, are there areas where you see better opportunities versus areas where you uh do not uh want to allocate capital at the moment as the competition is too high? Anything regarding that?

Um

No, I would say there's a there's a there's a tough competition in most markets. Um Uh And we are active in all markets, no, uh as long as we're present and we have um comfort in the underwriting, we're ready to do transactions.

Thank you so much. That was all for me.

Good morning, guys. Uh Johan, in your CEO letter, you flag that you're accelerating your efficiency program given the uh the weaker top-line growth.

Uh Should we view this that are you changing the 2028 potential targets or are you rather steepening the curve paths to reach those targets?

Hi, Björn. Um I think I can take that one.

Um if you look at the long-term target we have on the cost side, we do say it's going to be somewhere between 10 and 11 billion, and we set that interval based on obviously, having a this is a very long-term target and not knowing exactly how the income is going to develop until then. We, at that point, said that if income is higher, we'll probably be closer to the 11 billion, and income is lower, it's going to be closer to 10 billion.

Now, when we've had a couple of quarters where income is bit behind plan uh and we now see it's challenging to reach the target or the guidance we've given for the full year, uh then obviously, that means that to to any extent we change now in our trajectory, we're more moving towards the lower end of that target. Uh But that's by 2030.

Exactly how the trajectory will look like until then, it depends on uh business momentum some to some extent, because the more income we generate, the more variable costs we'll have associated with that. Um But I think you would you should sort of see that as indications that the slightly softer top line means that we will need to have a trajectory towards the lower end of that target.

Then, um in the next quarter or second half of the year, we'll come back on the cost trajectory for next year and what we see in front of us. Here and now, what we're saying is that we're accelerating the program.

I don't think you should expect any implications on the cost for '26 on that acceleration. It's really just moving in more markets than we had planned into the transformational program um earlier than we had planned.

Therefore, we should see a benefit of that post this year uh rather than already this year. Exactly what the benefit will be and how fast that will come, we'll come back with.

Uh

Okay, thanks. Are there redundancy costs associated with this?

Should we expect this to actually have a sort of a negative impact in on '26 numbers, I guess slightly, or?

Uh That's possible. Um And I think we've said that on the back on the capital raise, that um if the capital raise uh with the financial flexibility that that gives us, uh we will look into whether we can accelerate any of the plans that we had, and it is possible that that acceleration both leads to some investments, but also to get the efficiencies faster, it could lead to redundancy costs.

Um But that's something we will then potentially come back with when that uh is more clarified.

Clear. Uh And on the investing side, uh your amortization rate jumped to 43%.

I guess it's it's reflects the maturing portfolio, but but should we expect the to go like to stay at this level or should it continue north, or how should we view this trend? The more

if we can increase the pace of investments, that will obviously have an impact on the amortization curve depending on what type of um portfolios we buy and how they pay back. Uh I think the biggest impact in this quarter is probably on the back of Servihabitat, uh which has had an impact on uh the overall amortization rate.

Okay. Thanks.

Thank you very much. Uh I I just want to come back to the servicing dynamics between your uh between Greece and Spain and and kind of the rest of the group.

If I look at your '25 annual report, Spain and Greece are a little bit more than a third of your uh external revenues. Ca- Can you help us dimension the slide you provided today on a forward-looking basis?

Whether it's next 12 months or by '28 or, how much further headwind should we expect from Spain and Greece um so that we can kind of try and see how that has developed, cuz I think that slide is helpful, but it would be really useful to see kind of how that's developed over time, if the headwind block is getting smaller and when when do you expect that to finish?

I can try to answer that, and maybe we can give you a bit more disclosure in the future. Um It is correct uh that, that's the dynamic you have.

I I don't think you should expect any change in that headwind, especially in Spain. I think that headwind will continue.

Uh And what we have and the task is to show organic growth that is really driven by not to a large extent sort of reducing the headwind in Spain, is more offsetting that headwind with stronger growth in the traditional markets than we've had historically. That's really the task we have.

Um That's one dimension. The other dimension is obviously that assuming that Spain continues to decay, which it will, it will become a smaller and smaller share of the total revenues.

Um So what we need to do in the traditional markets, in terms of growth, becomes sort of less and less moving forward, and it's going to be less in '28 than it is in '26. From that perspective, even though, obviously, it will be better to have a Spanish business that grows, uh we don't it doesn't require as much growth in the traditional market to offset that.

I think Greece is more stable. Um It will probably also have a slightly negative growth rate, but it's not to the extent that you have in Spain.

The dynamics there are quite quite a bit different. Um And in UK is very different in the sense that we aren't doing extremely well in the UK today, I don't see that as a specialized markets in the same kind of way you would look at Spain.

It's a market where we can grow going forward. It's just a different type of business.

Do Do you think Spain will be in in line with most of your countries are kind of half a billion to a billion in revenues. Spain is 2.5 or or was 2.5 last year almost.

I- Is that where we're heading, or is Spain structurally a much larger market even with the current dynamics?

Spain will become uh less of a income contributor in the future than it's been in the past, that's clear. Uh But that will also then make the um the headwind will have less of an impact overall.

Uh

So we're basically rebuilding Spain and Spain will not have as profound impact uh or part of the overall income as it had in the past. There are different dynamics.

If you take Greece, Greece is a strong contributor to the group in terms of both income, as well as margin and profit. Whereas Spain is a big contributor on on the income side, but not on the margin side.

It's actually a negative effect on the margin side. A smaller Spain is clearly negative on the income side, but it doesn't have the same kind of magnitude on EBIT, for example, as as Greece would have.

Yeah. Secondly, uh Bloomberg reports this morning you've launched tenders on your '27 and '28 bonds.

Can Can you update us on what you're doing and and how we should think about kind of the refinancing story over the next next six to 12 months?

Yeah. Uh this is very much in line with the refinancing strategy that we have.

We have obviously refinanced the 1.5 liens uh for '27, that's done and extended to 2031. We have the second-lien bonds outstanding and we're planning to with the tender we are doing today, to reduce that outstanding amount.

Um And uh um and we will use some of the some of the liquidity we have today to do that, and we will use the remainder to buy back '28s uh the second-lien as well. That will help us uh from an interest expense perspective uh because the obviously the coupon we're paying on those bonds is higher than the interest we get on deposits when we have liquidity, or the interest we pay on the RCF when we draw on that one.

We will this is a way of reducing the interest expense, but also a way of managing the shorter maturities. You should expect these kind of actions to come uh in the next uh six to 12 months in addition to the discussions we will have with banks on uh the RCF.

That is something that is ongoing and we'll continue to work on that as well. Um So the priorities now is to um minimize the shorter-term maturities, especially the '27, um and then uh obviously refinance the RCF at some point.

Thank you.

Good morning. Thanks for taking my questions.

Um So, you mentioned the 35% to 40% FTE cost base reduction in target operations. Could you quantify that more like in relation to the total FTE base or something to get a a better sense of how much [indiscernible] to take out please?

Uh the best guidance we can give you, this is uh this program and what we're doing in the program is in line with the cost target we've given for 2030. Um So, I think uh you can on the sort of back of the envelope calculate what it requires in terms of FTE reduction to get to that level.

Obviously, there are other factors you have to put into account here. One is salary inflation for the FTEs we will have at that point in time until then, and you have also some investments we'll have to do.

Uh But we've talked about uh the automation we need to do in operations. It will mean that we will be fewer FTEs in the operations business, um clearly fewer, I would say, by 2030 than we are today.

Uh In actual numbers, um don't want to give any clear some numbers on it, but it's it's a large share of the the part of the operations um that this is targeting. In total, we have about 6,000 people in operations today, and automating those processes will lead to that um that FTE number coming down uh fairly significantly.

Got it. On the more short term, you highlighted how Servihabitat has increased the the cost base by, I think you said, 100 million.

Um The full-year guidance you have for costs down 5%, th- that still stands, though, even including Servihabitat, or is that changed?

The underlying cost, that clearly still stands. Um We have an ambition to uh offset some of that sort of technical increase that we get from Servihabitat now being consolidated.

Um Not completely sure that we'll be able to offset the full amount. Um I think for us, it's really the underlying cost development that we look into and what kind of underlying cost base we go into in 2027 that we look at.

Uh But that change in accounting um could be uh difficult to fully offset uh in 2026.

Got it. Then, I I see that is one of the markets you started uh an operational excellence program.

You also mentioned you've had some um some performance challenges there.

Sorry, where? Germany?

Yes.

Is that in any way connected? Like, is there a risk that this excellence initiatives are actually going to hurt your your collections?

Um

No. Uh I think that the operational excellence program is actually a way for us to improve the processes locally.

Uh The challenges we've had are more of a uh IT infrastructure uh basis, we are also running a migration in Germany, uh and that migration has taken longer than we expected. That has an implication then on how we can uh optimize our processes.

The idea is to move from a more unstable environment uh uh with a lot of specialized process and bespoke solutions to a standardized and stable uh environment.

Last question just on Germany, that you say that it's been longer onboardings. Li- Like should we read into that in any sense that you have a backlog of clients or contracts that you will be able to on onboard when that's done?

That should accelerate uh the organic development there, or is it more when you've done the the program then you've been able to to go out and win contracts, but be more competitive? We We We

we do have a number of clients that we are working with. Uh uh The question is, I mean uh and and and we have a continued growth ambition.

When we see that the platform is not as stable as we would want it to be, we have kind of lower ambition on onboarding of clients cuz we don't want to sort of take too much on and then not be able to deliver. I think to answer your question, uh there is pipeline, but right now the pipeline is not being filled up because we're being careful to take on uh new clients additional new clients as long as we we're in the stabilization phase.

We think there is a big potential in Germany, generally.

Got it. Thank you.

Good morning, everyone. Um A couple of debt-related questions, please.

Um So just on those tenders that were announced um this morning, uh what sort of size are you thinking of for the debt element? Then um how much uh earmarked for the RCF um redemption?

Then, would you mind just going back through what you were talking about with the FX hedges and how that's affecting the the interest costs, please? Thank you.

Um

Yeah. Um I don't know what the release this morning said, but you will see that when that comes out, um the when it comes to nominal amounts.

We are doing a tender on the '27s at a fixed amount, and then we're doing a tender on the '28s for the remaining part. We We will have to see what the uptake is when it comes to that.

This is the first one we do with the using the proceeds from the Orange sale, really, to do this tender. Um So, we'll see what the uptake is on the prices that we feel comfortable uh buying back at.

Um And then, yeah, we'll see what where that goes. Then we will probably do several of these tenders going forward as well with the liquidity that we generate.

Um You'll be updated on the RCF and um the sizing of it when we come to our Q3 report at as that is something that we've done in July with the capital raise proceeds as well as the Orange sale. Um So, that's something we don't uh disclose here now.

Um Annie, do you want to take the FX hedges? Uh

Yes. In terms of the FX, sorry, did you just want to have to know uh what kind of thing that uh we did?

Can you just repeat that question?

I'm interested in the interplay between that and the interest. I think you said interest, quarterly interest costs came down because of the hedges.

Just wanting to understand how they're working and play in the P&L, please. Uh-huh.

Yes. That was actually the financial net uh and the FX uh uh impact.

That's the interplay rather than the interest cost as such. Um But essentially, what we've used is our euro net investments in uh subsidiaries and match that with our external euro loans.

Therefore, uh we have taken down that uh FX exposure uh meaningfully and significantly. Then what's remaining really is our um exposure to non-euro currencies.

If I can just ask one follow-up question. Um On the Servihabitat joint venture, are there any plans to do the same with other JVs?

Uh

There are no plans at the moment.

Thank you.

Hi. Just a short follow-up.

Uh I note uh that the presentation material and all the uh appendix information has been removed in the Q2 presentation. Is the a reasoning behind this?

Uh Will they be released somewhere else? Uh could we expect this going forward as well?

No, that's uh just the mistake. We will we'll add that back in.

Probably when we uh PDF it.

Thank you.

Good morning and thank you for taking my question. Just one more follow-up on the tender offers and going forward.

Will you need some sort of new consent from from any of the creditors to do more tender offers above par?

No. Not when it comes to the tenders we're doing in the in the way we're doing it.

Okay. Will the focus then be on on tender offers rather than RCF repayment?

Sorry, can you repeat that, please?

Will the focus in the coming months be on tender offers of the short-term bonds rather than paying down the the RCF?

Uh we will do more tenders uh and how we deal with the RCF, that's something we'll do at the same time. We will not um exactly sort of say how we deal with the different parts.

Um That's something we want to have some flexibility when it comes to how we deal with it and at what timing.

Okay. Thank you.

thank you for the questions. Thank you for taking the time, um and uh thank you for listening this morning.

Uh We will keep in touch. Have a lovely Friday.

Thank you. Bye.