Good morning and welcome to the presentation of Investment AB Latour's year-end report for 2025. The first part of the presentation will be in listen-only mode, and we then open up for questions.

To ask a question, dial *5 on your telephone keypad or use the chat window. With that, I hand over to CEO Johan Hjertonsson and CFO Mikael Jonson Albrektsson.

Thank you very much, Katarina. Welcome, everybody.

I'm here together with Mikael. Today the presentation will be divided into two sections.

The first part is the usual one we've always done. We'll walk through the Latour Group's development in Q4 and the full year, and we will be commenting on the development of the investment portfolio and the wholly owned operations.

Then we will open up for questions. Then we have a new thing, a second part, where this time we will make a deep dive into Latour Industries, which is one of our seven wholly owned operations.

We will then later rotate our seven wholly owned operations on the quarterly reports, you will meet more colleagues later on. Today, we're inviting Tina Hultkvist, who is the CEO of Latour Industries, for this section.

Finally, after Tina's presentation, we will have a Q&A session together on Latour Industries. Thus, two Q&A sessions today.

Good. Let's go into Latour Group key highlights.

We finished the year on a very positive note, delivering a record quarterly results with improved profitability. Continued strong performance across our operations despite the challenging business climate.

We had an organic order intake growth in both Q4 and the full year, which indicates a positive underlying demand, although it does vary between industries and regions. On the one hand, we're facing a weak market environment driven by increasing geopolitical instability.

On the other hand, we own companies operating in sectors shaped by global megatrends such as energy efficiency, accessibility, and automation, which provide strong prospects for growth going forward. I will comment more on the financial outcome more in detail later in this presentation.

Finally, the acquisition activity has been quite high during the quarter. We signed an agreement to acquire Alstor to Latour Industries and divested two companies within Latour Industries' Mobility division, AAT and Batec.

In addition, Latour Future Solutions made a minority investment in Nuak. It is rewarding to see that all the efforts of our M&A teams, both centrally and within our businesses, are paying off.

Summarizing the year, we have completed seven acquisitions, adding 1.8 billion in annual revenue, a solid foundation as we enter into 2026. Here, I would like quickly to hand over to Mikael to present our net asset value.

Over to you, Mikael.

Thank you very much, Johan. If looking on the net asset value development during the year, we can conclude that it increased by 2.4%, adjusted for dividends during the year, and amounted to 216 SEK per share, compared to SIXRX that increased by 12.7%.

The share price at the end of December was 225 SEK, which means that there is a premium of 4%, compared to how we present net asset value. As of yesterday, the net asset value was 218 SEK per share, and the share price on the same day closed at 229 SEK, which gives a premium to our way of describing the net asset value of about 5%.

The consolidated net debt decreased during the quarter from 16.8 billion SEK to 15 billion SEK, supported by a strong cash flow. The net debt corresponds to about 10% of the market value of our investments, leaving headroom for further acquisitions going forward.

With that, I hand back over to you, Johan.

Thank you, Mikael. Then we have the dividend here.

We have a good profit development in our holdings and a strong financial position, the board of directors proposes an increased dividend to SEK 5.10 per share, which is an increase of 10.9%. The proposal is in line with the dividend policy, which you can see here on the slide.

Thus, we have a strong historic trend of increased dividends, as you can see on this slide that shows at least the last 10 years. If we move on then into the investment portfolio, there's no major changes within the listed portfolio during the quarter.

Earlier in the year, however, we increased our holdings in CTEK to 35.3%. Value development during the year was 1.2%, whereas SIXRX was 12.7%.

Some of our holdings have shown weaker stock market performance, while others have been strong. Until yesterday, February 10th, the portfolio value was 89.2 billion SEK, and the total returns amount to 1.4% so far this year, and the SIXRX was 5.4%.

If we go to the next slide, looking at the underlying performance, it is clear that the greater part of our holdings have demonstrated positive growth and profitability over the years, also especially these last couple of years that has been quite tough business-wise. The majority of our companies have reported the Q4 results, and performance has been strong for most of them, despite challenging market conditions.

Geopolitical instability continues to affect the markets, though the impact varies depending on market exposure and geographic presence. The acquisition activities are high in our listed holdings, and one example among several is Sweco, who acquired ASAR Architects during the quarter, thereby strengthening its position even more in Belgium.

If we take the next slide, just to show a little bit longer perspective on our listed holdings, as Latour is a long-term owner, it is worth evaluating the total return of the listed portfolio from a longer perspective, as I said. During the last 15 years, the total return amounts to about 600%, compared to SIXRX that amounts to 350%.

We see this as a confirmation that the holdings in our portfolio are contributing to the positive shareholder value creation. Then I would like to comment on the wholly owned operations.

The wholly owned operations ended the year with a very strong quarter. Order intake increased by 7%, of which 8% was organic, and net sales increased 6%, of which 5% was organic.

The organic growth indicates an underlying good demand for our companies, but the picture is mixed. The construction industry remains weak, for instance, with Hultafors facing the toughest market conditions.

At the same time, long-term drivers as energy efficiency, accessibility, automation supports growth opportunity benefiting companies like Swegon, Bemsiq, and Innovalift. Caljan also reported solid underlying demand driven by major logistic customers, and Nord-Lock Group has performed strongly throughout the year, supported by its global industrial exposure and an increasing focus on safety.

We have good cost control and profitability is increasing in the quarter. The adjusted operating result for the quarter is record high, with an operating margin of 15%.

Then to comment our wholly owned business on the full year, and our our businesses have navigated their operations well throughout the year in markets marked by the geopolitical disturbances that you all know. Total growth order order intake was 13% and net sales 9%.

Various growth initiatives combined with currency headwinds have put pressure on the operating margin. The Q4 outcome, however, indicates that we are moving in the right direction and that our investments are paying off.

Adjusted operating profit amount to 3.9 billion SEK, compared to 3.8 billion SEK the previous year, and the EBIT margin was 14%, compared to 14.6% in the previous year. Lastly, a strong cash flow generation accounting to more than 3.7 billion in positive cash flow.

Strong result, especially in a turbulent year, and we are very happy and proud for that. If I go over and comment on our acquisitions during 2025, and during the quarter, Latour Industries signed the agreement to acquire Swedish Alstor, which I mentioned, which was finalized in January of this year.

Alstor is a provider of compact forestry machinery for thinning and forest management, and with this acquisition, Latour Industries is entering a new segment, the market for forestry equipment. Latour Industries also divested AAT and Batec during the quarter, and with that, they left the Mobility division.

In addition, after the reporting period, Densiq within Latour Industries increased their services offer by the acquired Scandinavian Sealing based in Sweden. In total this year, we have finalized in last year, I should say, we have finalized seven acquisitions.

Should we include the two acquisitions finalized in January of this year, the acquisitions during the year adds to more than 2 billion SEK in net sales on an annual basis. We're very happy with our M&A performance as well during 2025.

Having said that, I hand back to Mikael to comment on our seven business areas. Over to you, Mikael.

Thank you very much, Johan. In regular fashion, we start by taking a closer look at Bemsiq Group.

Bemsiq had a continued good performance in the quarter. Order intake in line with last year, which is driven by both organic growth and acquisitions, although partly offset by negative currency effects.

The total organic growth in net sales was 12%, driven by the Building Automation division, while the Metering division is a bit slower. A strong performance overall, considering the challenging market within the real estate and construction industries.

The adjusted operating profit amounted to 94 million SEK, with a good margin of 18.4%. The margin was slightly negatively affected by growth initiatives ongoing and recent recruitments.

With that said, we then turn the page and direct the focus towards Caljan. Order intake remained strong during the quarter, increasing by 20% when adjusting for currency effects.

The order backlog is at solid levels for the coming quarters. Caljan is now increasing the production capacity to meet the strong demand.

Driven by the higher order intake during the year, net sales showed a very strong development in the quarter, growing organically by very strong 38%. The adjusted operating profit was very strong as well, amounting to 109 million SEK, with an operating margin of 23.9%, which is a combination by good cost control, a strong gross margin, and high volumes.

With that said, we turn the page and take a look at Hultafors Group. As Johan commented a bit earlier, the overall market conditions continues to be challenging for Hultafors Group, especially in North America.

The total net sales is organically down by 4%, compared to the corresponding quarter last year. The profit margin is lower than last year, mainly due to a combination of long-term investments for future growth, as well as lower volumes in the period.

The adjusted operating profits amounts to 301 million SEK, with a margin of 16.8%, which is good under the circumstances. We then turn page and take a look at Innovalift.

For Innovalift, we saw order intake continue to grow, supported by acquisition and a very healthy organic growth. Total net sales grew by 37%, driven by both acquisition and organic growth, and especially within the Components and Modernization segment, as well as the Direct Service and Sales segments.

The gross margin continues to improve step by step, and the cost controls remain strong, the quarterly adjusted operating profit amounted to 132 million SEK, with a margin of 13.8%, and summarizes a very good year for Innovalift. With that, we turn the page and continue with Latour Industries.

Latour Industries' business units showed a mixed development, with a sustained strong demand for REAC and MAX AGV, while the remaining units face somewhat softer market conditions. In total, order intake is growing organically by strong 12% during the quarter.

Net sales is down by 3% from last year, driven by REAC and LSAB. The adjusted operating profit amounts to 30 million SEK, with an operating margin of 6.4%.

The result is negatively affected by currency effects and a weak market climate, as well as ongoing investment for future growth. As we have commented, worth mentioning again, Latour Industries currently has an underabsorption of their fixed costs on the central level following the distribution of Innovalift, putting additional pressure on the margin for the time being.

As the heading of the picture states, the focus of Latour Industries continues to be on developing the existing holdings and to find new platform investments, which Tina will talk more about later in the presentation. To briefly recap what Johan also had said earlier, the Mobility division was divested during the quarter, and the acquisition of Alstor was signed in December and finalized in January.

We then turn page again and take a look at Nord-Lock Group that continues to develop strongly during the year and in quarter four, despite the tough business climate, reporting growth across several metrics. Order intake grew organically by a strong 19% during the quarter.

The net sales grew organically by very healthy 10%, reaching an all-time high for a single quarter. All sales units contributes to the growth, and the order backlog remains at solid levels going into the coming quarters.

The quarterly adjusted operating profit increased to 139 million SEK, with a strong operating margin of 25.5%, despite significant negative currency effects, but summarizing a very strong year for Nord-Lock Group overall. We then turn page again and look at our final business area, Swegon.

For Swegon, the market has stabilized somewhat during the quarter, and order intake strengthened during the quarter and is up 10% organically from last year. Total net sales grew organically by 4%, driven by North America and the segment Air Handling, Cooling and Heating.

Adjusted operating profit came in at 307 million SEK, with a margin of 11.4%, supported by higher volumes and an improved margin. We can also once again comment that Andreas Örjestål left his role as CEO of Swegon on February 1st and will assume the role of Chief Investment Officer of Latour in April.

Very exciting, and welcome back, Andreas, we say. We can also comment that Eva Karlsson now is serving as interim CEO for Swegon, we want to take the opportunity to congratulate Eva to that appointment and wish you all the best in that position.

Then to continue, we'll continue with the financial targets, and with that, I hand over back to you, Johan.

Thank you, Mikael. Excellent.

Our financial targets during the last 12 months, we have had a growth of 8.7%, EBIT margin of 14%, and return on operating capital of 13.9%. This is an outcome that we're good with.

The targets are to be seen over a business cycle, and we have been in some time in recession for some time now. Growth is driven by both acquisition and organic growth, but with strong currency headwinds.

We had about 900 million in negative headwinds on the top line in the quarter. No, in the full year.

EBIT margin is a good level, and return on operating capital is satisfying. Then I go to the next slide here before the Q&A.

To summarize, 2025 have been yet another year marked by the global uncertainties affecting the business climate. However, we are pleased with the outcome, and we are entering 2026 with a strong order backlog and an organization well prepared to meet both opportunities and challenges.

Latour is a long-term, sustainable investment company and a responsible owner, creating value for our shareholders. We are financially strong and continue to invest in our holdings, both existing and new ones, to enable future growth and create value for our shareholders.

We have a strong corporate culture that we treasure, which is of great value while we move forward in a volatile and rapidly changing world. With that, I'd like to thank you listening in so far, and we open up for the first Q&A session here together with myself and Mikael.

Thank you and good morning. My first question is on Hultafors and the margin profile, and I agree that 16.8% margin is definitely strong in the face of these headwinds.

Could you just help us pick apart how much of this headwind comes from the FX and the negative volumes, and how much is these strategic growth investments that you are undertaking?

I can start, and then Mikael, maybe you can shed some more lights on it. I think overall, on the full year, on the Latour operations, it's about 3% negative headwind on the top line, and about the same on the EBIT.

That translates to a little bit less than a billion on the top line, and some 120 to 130 million SEK on the EBIT in total. Then over to you, Mikael, if you want to comment a bit more specifically on Hultafors.

For Hultafors, I think the most important driver for Hultafors per se is the volume. We are very confident looking at underlying margins that when volume comes, the EBIT margin profile is where we want it to be for Hultafors specifically.

Thanks. Then my second question is on Caljan, since it's been a while, if ever, since we've seen sort of normal circumstances in this company.

Should we think that this 20-plus EBIT margin level is reasonable to expect going forward if these market conditions persist?

I agree with you, Linus. It's been really a rollercoaster ride with Caljan.

That's a little bit one, it's the nature of the business. It's a very project-oriented business with very large projects.

It's also a business that is exposed to heavy CapEx-type of investments with their clients, right? Then, thirdly, I'd like to say they had an extreme peak during the pandemic when e-commerce was booming, and then they had equivalent reverse downward trend when the pandemic was over because there were overinvestments in the logistics sector.

Now those investments are coming back. I would say that last year you would see that a more normalized year.

Of course, the growth numbers are a bit crazy because you compare to very low numbers in the year before in 2024. Margin-wise, I think Caljan is a company that should operate somewhere on 20-plus EBIT margin on everything else the same over a longer period.

Yeah. Thanks.

Then my final question was on Swegon. I understand that volume growth is obviously a key driver here as well for margin improvements.

Are there any other, say, notable actions that move the needle that you're taking in Swegon on the margin or cost side?

Always. We always work with optimizing our costs.

On a positive note, we have seen strong growth indications that the market has turned in Q4 for Swegon, hopefully we will see a stronger growth going forward. Also, as a general comment, I would like to say that Swegon is very nicely positioned in the area of energy efficiency and also there is an increased interest in a healthy indoor climate.

That's exactly what Swegon works with, so that plays very well in that sense. Something you want to add, Mikael, on the margin on?

No.

No, not really. I think, as you mentioned, Johan, the increased demand for indoor air quality requires more advanced products, which plays well ahead for Swegon's offering.

Also, that type of products is also more technology-content typically offer healthy margins in that business as well.

Okay. Thank you very much.

Thank you, Linus. Great.

We do not have any written questions in the activity feed, I hand back to you, Johan.

Thank you, Mikael. That ends our first Q&A.

Now, into our new thing. We will on our quarterly report presentations do a quick deep dive into each business areas, and we will have a rolling schema coming up.

The first one is Tina Hultkvist for Latour Industries. I hand over to you, Tina, and I know that you have a presentation, and then the three of us will together take Q&A on Latour Industries after that.

Over to you, Tina, please.

Thank you, Johan. Then moving into a deep dive of Latour Industries.

Latour Industries is one of the seven companies in Latour's wholly owned portfolio. The main mission for Latour Industries is to build new company platforms.

We are the home where good companies are young, grow as teenagers, and ultimately move away, becoming new company groups in the Latour wholly owned portfolio. Actually, three out of six sister companies have grown within Latour Industries and then moved out, forming new company groups.

That's Nord-Lock, which was quite a few years ago; then Bemsiq; and last, Innovalift roughly two years ago. If combining us, around 10 billion out of the current wholly owned operation of Latour comes from previous Latour Industries companies.

All together, we've made around 60 acquisitions and stands for around 30% of the value of the wholly owned portfolio. This is just to show how building the new platforms has played out over time, forming the 10 billion.

The grey part is the portfolio currently reported as Latour Industries, and within here, we continue nurturing companies that have the potential to form new platforms, and we also develop companies that may be more relevant on a stand-alone basis. When Latour Industries as such is small, we are most successful because by then, we have most probably recently let one of our company groups move away from home, and our work starts all over again.

Creating new business areas is our main mission. We do this by proactively establishing and nurturing contacts with good companies.

This is an area we have strengthened the last two years, and of course, we also engage in structured processes as they come out. By active business development to support growth and add-on acquisitions, we take the steps towards forming a new business area.

Guiding stars in the acquisition process is, of course, the Latour investment criteria, focusing on acquiring good companies with good growth potential. As mentioned, we have intensified the actions in proactive deal sourcing lately and are spending quite some time in building and growing relations with good companies.

The current portfolio we have is a quite wide range of companies. With respect of time, I will just mention the last two acquisitions.

The most recent one then being Alstor. Alstor designs and manufactures compact forest machines for customers ranging all the way from professional players to self-employed forest owners.

Then before that, it was MAX AGV, and MAX AGV designs and manufactures automated guided vehicles combined with in-house developed software solutions for various kinds of industrial use cases. Coming back to what Mikael showed, what you see on the five-year perspective to the right is the development of the companies still within Latour Industries' portfolio.

The two new business areas built during those five years are excluded here and reported separately, but have, of course, been a major part of the efforts made within Latour Industries. We have a quite widespread operations in the portfolio, and the performance differs between the companies that we have today.

As two companies that we had has been divested during the quarter. In addition to that, the underlying demand is good in REAC and MAX AGV, but we are exposed to currency fluctuations, and we do have some headwind in other parts of the portfolio.

When looking ahead, we are striving for high level of acquisitions. Historically, the pace of platform builds has been around two platforms in roughly five years, and this is a quite good indicator of the pace that we are aiming for going forward.

We hope this has given a clear view of who we are in Latour Industries and what our value for the Latour Group is. With that, we open up for questions.

Thank you, Tina, for an excellent and to the point and clear presentation. Therefore, we open up for the Q&A session with Tina and Mikael and myself.

Hello again. Thank you for being on.

I had two quick questions. The first one being, I understand, of course, that there's lower pressure on the companies within Latour Industries to sort of show immediate, say, profitability improvements, et cetera.

Where do you draw the line where you would decide that you would divest a business in Latour Industries?

It's a good question. I can take a first cut on that, and then Mikael and Tina, please join in.

I would say, we have the same pressure and expectation on Latour Industry companies as also all our companies. Naturally, we take a slightly higher risk in parts of Latour Industries when we enter a new segment and so on.

It can also be that when we come into a new segment, we learn a lot about the segment and we learn about that industry and we see things we like, and then we continue and we build and we see that our initial hypothesis was correct. Sometimes we see that it was tougher than expected and we see that maybe it doesn't fit us in that sense.

The Mobility division was an example where we said, we can't add value. There's more other interesting opportunities, and then we go out.

It's not that we have a fixed EBIT margin that we say you come below it, it's then when we feel that this is not long-term viable in that sense. That's when we exit.

Do you want to add to that, Tina, or Mikael?

I think it's a good description. Maybe just adding there that we are, of course, very much looking into the potential also when looking at the profit.

Where can we go with this kind of business? That's an important metric for us.

Then to some extent, maybe we do have a little bit more patience also in developing the companies here within Latour Industries than what we usually have.

Yeah. If I can add to that, Tina, many of the Latour Industry companies are naturally slightly smaller in size, and therefore Latour Industries has a very professional central overhead, if I may say so, to support and to develop in terms of business development, M&A, strategy formulation, and so on.

Okay?

Thank you. That's helpful.

Then my second question was on if there are any sort of sectors or megatrends that you're actively working with currently, but that you don't have in the portfolio right now?

A very good question. Do you want to say something on that, Tina?

Yeah. Of course, we are continuously looking into interesting sectors, and there are a few that we are maybe more interested in others and let's see what happens with that.

I think we should not disclose that particularly here. We are open to many new sectors, as long as it is within the Latour investment criterias, we are looking broadly, of course.

Latour Industries is the area where we can enter into completely new sectors. That's why we are open to entering into anything new that is enough interesting and fits into the criterias.

I think we can mention, Tina, one acquisition that we just did as an example of how we think is Alstor in the forestry sector. We have identified that the forestry sector is a very long-term, globally interesting sector to be in.

It's an undertrend, to speak, of the whole green thinking of more where you would build more with wood, and energy, and all of that counts from our forests. Then also Linus, that has followed us a long time, we are also looking for a company with good technology that has an international potential.

Within the forestry sector, actually globally, Sweden and Finland are the technology-leading countries in the forestry industry sector. Obviously then we start with one company, and now we will learn this sector in depth.

Hopefully, we can make add-on acquisitions and build something interesting within that. I think that's the way we think, and I think Alstor is a good example of that.

Right?

Okay. Thank you so much.

This was highly appreciated.

Yeah. Thank you, Linus, for your questions.

Yes, just a quick question on the execution of acquisitions within Latour Industries. When you do acquisitions in your companies, are these the same M&A teams carrying out all of these acquisitions?

Or does Latour Industries have its own dedicated M&A team? That's my question.

A

good question. It is a mix.

Investment AB Latour has its own M&A team that works with many of our wholly owned businesses as internal consultants, you could also say, to help them with M&A. One of those business areas is Latour Industries.

Latour Industries draws its resources, to speak, from the Latour team in that sense. Other business areas might also have their own M&A teams, the precise answer to your question, there's a mix between central team and the local teams.

They all work tightly together, of course.

If I may, a follow-up question. When you look at acquisition targets for Latour Industries, are you actively thinking about businesses that could in the future be merged with your other wholly owned companies?

Or is that not really part of the consideration when selecting acquisition targets?

I can start, and then Mikael, if you want to comment. I think, no, primarily it is to find new areas.

Obviously, Latour Industries will have a lot of inbound interesting cases, but they will be funneled directly to the other business areas where it's more appropriate in that sense. I think I understand your question, I think we would not buy something that we think would fit in Swegon and keep it in Latour Industries and then transfer it.

No, then we'll ask Swegon, for instance, to do the transaction directly. Latour Industries is not a transaction vehicle for the other business areas, to be clear.

Good. It's like a stand-alone incubator, not an incubator for the other wholly owned companies.

Exactly.

Exactly. You got it.

Excellent. Great.

Thank you. Those were my two questions that I had.

Thank you, Oscar.

We do not have any written questions in the feed, I think that concludes then the final, second Q&A. I hand over to you, Johan.

Thank you.

Thank you, Mikael, and thank you, Tina, for this premiere of an in-depth in one of our business areas. That was great, Tina.

Tina, thank you for visiting us here on the call. Thank you, everybody, for listening in, and that concludes the complete presentation of the Q4 report.

Looking forward to talk to you and speak to you again when we have our Q1 presentation later on this year. From Tina and from Mikael, thank you very much.

Bye.