Yes, thank you. Hi and welcome, everyone, to this presentation then of Alligo's second quarter results for 2026.

Last time you met Alligo in this context, it was, I think, the 51st consecutive report by my predecessor, Clein Ullenvik. I just want to start by thanking Clein for a long-lasting, fantastic effort to form this company Alligo, and it was so for handing over a well-managed company for the rest of us now to continue to develop.

My name is Samuel Alteborg, new then CEO obviously from 1st of June. Today, I will present the second quarter together with our CFO and Deputy CEO, Irene Wisenborn Bellander.

Let's get going. As always, what we will do, we will give a brief on Alligo as a company and then some highlights for the second quarter, an update on a few specific initiatives that we are running before Irene takes us to the financials more in detail, and then we sum up with an outlook for the remainder of the year.

To start then, Alligo, as I believe most of us know, a leading player in workwear, personal protection, tools and supplies across the Nordic region. We do roughly or slightly below 10 billion SEK revenue.

We employ around 2,500 employees and currently operate from 234 stores. Anyone with a good memory may remember that when we reported Q1, we talked about 239 stores.

Since then, we have closed two stores in Finland as part of the efficiency program that we are running there, and we have also combined a few stores in big cities in Sweden. This is more you could say an ongoing, natural evolution of the footprint that we have.

Revenue-wise, majority of course coming from Sweden, even more so the profit where Sweden is very strong. There is one key driver to keep in focus here when you look on the revenue, and that's the share of own brands that we sell to our customers.

We are currently at roughly 18%, and this is the main driver for profit in our business. That's about Alligo.

Then we normally talk about Alligo as an integrated Nordic business with roughly 80% of our sales is coming from one common platform and shared functions across that platform. This is an effort that has been done in many years to combine a lot of entities into this platform, and then we now operate on the same IT systems, ERP systems, BI, etc.

We have really glued together, you could say, all of our backbone, which brings us a lot of opportunities both through the data transparency, we can now see everything across and we can learn from each other and spread best practice, and of course it also generates a lot of efficiencies. Where we are now, I would say this is a lot about just leveraging all the opportunities fully that comes from the integrated business that we now run.

Sales channels, also important. As you can see on the right side, within the integrated business, we have roughly 32% of our sales from our stores and our store network and roughly 30% from our various digital channels.

Then in addition, we are operating a few we call them industry stores. Those are more or less more pop-up stores at industry location, construction sites, etc., where something temporarily is happening and where it makes sense to be present locally, but it's also a store we will close down whenever that project or whatever it is is completed.

In addition to the integrated business, we also have a number of non-integrated companies, and they represent roughly 22% of our sales. I think it's around 35 companies right now, and we have acquired them over time in selected you could say product and technology niches or areas where they come with strong expertise.

For me, this is a perfect mix. We have a strong core with the integrated companies that we then build on and add these selected technology areas, which are adjacent in the sense that some parts of the product range may overlap, but they also come with a much stronger and broader product range in their niche.

Some customers may overlap, but they also come with a new customer base. Of course, they bring a lot of expertise to us.

All in all, it really strengthens our position on the market, makes us even more relevant, and it also enables us to leverage our platform again, where we can find both cost synergies, procurement synergies, and an ability to cross-sell. A really good mix of a strong core in the integrated business and with some flavors then from this non-integrated companies.

We try to operate these companies in groups. Currently, we run a few groups then that are bigger.

Product media, you know about. Welding, we have built quite recently, eight companies now.

We are also strong within batteries, and we have another set of companies as well that is performing really well for us. Let's move on, and then we're going to talk about some highlights for this second quarter.

If we start with macroeconomics, and we are all aware of the exciting geopolitical situation that of course brings uncertainty to many companies. We have said before that it has limited direct impact on Alligo, and that statement still stands.

My reflection coming in new is that we have probably learned well over time how to maneuver risks in the supply chain and fluctuations in raw material prices, etc., in a really good way, because what we see now is very few or very low impact from this situation, and that's very positive of course for us overall. If we look on the market, we call the market in the Nordics right now stable, but we also see that it's uneven across the segments or the countries.

Starting with Sweden, it's definitely a stable market overall in the sense that it's not declining any longer, which it has done for a few years as we all know, but it's not growing rapidly either. It's really kind of on par month by month or with maybe a little positive signs going into some type of a positive trend.

What we do see, it's some areas or what we call them pockets of growth in various sectors. Defense industry is obvious, and there we have succeeded well historically.

Data center is also a pocket of growth that we can tap into. There are such areas, which is positive even if market overall is still stable.

If we look in Norway, we could apply the same kind of stability as in Sweden, but you could almost argue that there are pocket of growth that is instead pockets of decline, which is of course a bit tough, oil and gas being the most obvious one. A few years ago, there was a lot of incentives by the state in Norway to build out energy capabilities around oil and gas, and several investment projects started.

Of course, we and many others have benefited from good business in those projects over the years, and now they are more or less completed, coming back a bit to normal levels. Therefore, we see overall then a decline in the oil and gas market.

If we go to Finland, a bit more positive, definitely a continued recovery. It's supported by manufacturing and small and mid-sized customers, and here we see a market which has probably left the bottom and is now gradually moving upwards, so that is positive.

Overall, customers remain cautious. Basket size are limited, they buy only what they plan to buy, and of course that puts also somewhat a pressure on our sales.

Given this macroeconomic situation and the market situation, of course you have to apply a very proactive management, and I think Alligo has done that for many years now. This proactivity stretches from everything but sales and pricing to all cost elements.

We will continue to do that in the same way as we have done in the past, maybe even with some new flavors that we will talk about as we move along. Finally then, our delivery capacity or capability.

Again, we don't see any big impact right now from the uncertainty in the geopolitics. If we look in our supply chain and deliveries, there are no major disruptions.

Hardly any disruptions, to be honest. Surprisingly strong and really a limited impact so far from the situation in the Middle East, which is again very positive for us.

Now moving into the actual results for the second quarter. Starting to say, we are very happy with the quarter that we're now reporting based on a revenue growth of 5.7%.

It comes from various drivers, and Irene will talk a bit more about this, but it's a mix of organic growth, acquisition-driven, also some FX effect, and a positive calendar. Add an improving gross margin to this growth, and of course you get a very nice effect on EBITA.

This is a scale business, and then we can see 30% improvement in EBITA, which we're of course very satisfied with. That brings up the margin heavily as you can see, up to 7.2%, and the operating cash flow is more than twice than Q2 last year.

Overall, again, we think there are many positives in our second quarter, and of course as always, there are also things that we want to work on and improve even further. If we take some highlights, from a sales perspective, we talked about defense still driving a lot of sales in a positive way, and we have also seen a stabilization over time in our store traffic, majority then coming from small and mid-sized customers.

This is very good for us. We see positively that our share of own brand is increasing.

If you look on the total picture here with the non-integrated companies taking a bit of a bigger share of the total business, you could think that the own brands would actually decrease. That would be kind of the expectation.

We are succeeding well, specifically with workwear, and therefore we see a higher share of our own brands, which is a good driver for profit. If we look into operations, we have executed cost reductions in the second quarter in Finland as part of the restructuring program we are running there, and they have fallen out well.

We also, as always, I should say, continue to optimize our assortment and pricing strategy. We need to stay relevant to customers in relation to price level, but of course also secure our own profitability, and that we do continuously.

Then we have also been working throughout the year on an area of improvement for us, which is the capital efficiency. We have reduced inventory levels according to our plan and see positive developments also there.

On the acquisition side, we actually talked already in the Q1 presentation on two new acquisitions, but they took place in the second quarter. We're happy to welcome Svets & Robotteknik i Småland AB and Svets & Skärteknik i Kalmar AB now to our portfolio of Svets companies, and we are also now completing the footprint you can say in the southern part of Sweden in a very nice way with good then geographical coverage.

The two companies combine an annual revenue of slightly above 50 million SEK. Now into the updates, and we said that we will look a bit more in detail on two things, starting with Tools Finland.

I know you have seen this update before. It relates to the efficiency program that we are running in Finland, and we are happy to see good progress in many aspects of this program.

During the quarter, we have closed two stores, and we have also at least completed the phaseout of two quite large customers. Luckily also, then been able to replace those customers and that revenue with other customers instead, which has been a very positive development for our margin.

You can see the numbers on the right side: the EBITA margin going up in Finland, and the share of own brands developing well. Again, overall very happy with the work the team has done with Håkan in lead, and we look forward to continue to monitor their progress as we move along.

Another deep dive we want to do is into our new service solution that we call ReCare. This is a solution for work clothes that includes a laundry service, the logistics around that, and also the ability to repair or reuse clothes on behalf then of our customers, and of course recycle them when they can no longer be used.

It's a clear business logic here, and I'm really happy to see that we have launched this service. Alligo is really strong in workwear, but specifically towards smaller and mid-sized customers.

Of course, our strong product range would fit really well also to big industries and big customers overall. This is the ticket that is needed to come into that type of business, because the big industries, they want to have a solution where they not only buy the clothes, but where they also can launder them and the whole logistics, getting the right kind of clothing back and forth to the user in a controlled way, and again the ability to repair and reuse the clothes.

Now we have this in place, and we're super happy then to talk with customers and open up new possibilities to expand our workwear offerings. If we look a little bit on how it's going, it's now launched across the Nordics, and we have gone from pilot projects into an established offering that is functioning well.

It's a clear demand. We have dialogue with a lot of customers around this.

The sales cycle is a bit long, it takes time before we build the customer base, but very confident that this will be a driver of growth and profit for us in the long run. We also brought a few kind of classic customer examples here: Swisslog and SS Energy are industrial companies in automation and in services, and we have another manufacturing customer in Finland that we also just signed for this solution.

As you can see, it starts somewhere when you have around 100 employees and then stretches upwards. Then it fits well, and it's a very logic thing to buy and utilize clothes in this way.

Looking forward to talk more about ReCare in the long run and how that business is developing. Now we move over to Irene and talk more about the financials.

Thank you. As Samuel mentioned, we delivered a strong quarter with organic growth, improved profitability, stronger cash flow and continued decreased leverage.

It was actually the third consecutive quarter with organic growth and the fourth quarter with improved results. Revenue increased by 5.7% in the quarter, supported by organic growth of 1.3%, acquisition-related growth of 1.4%, and one additional trading day and a positive currency effect.

The markets remained stable, but uneven across segments. We achieved organic growth in Sweden and Finland, while the demand in the oil and gas segment in Norway remained weaker.

EBITA reached 187 million, representing an improvement of 43 million or plus 30%. The increase was due to improved results in Sweden and Finland and was driven by higher volumes, improved gross margin and cost reductions.

In addition, earnings were positively impacted by a 9 million from the release of contingent consideration liabilities as certain performance targets were not achieved. The corresponding amount last year was 4 million.

The gross margin improvement compared with last year was driven by active sales and assortment management, including a higher share of own brands sales, a more favorable customer mix, and a stronger SEK against US dollars. This was partly offset by increased contribution from Finland, where the gross margin levels are lower.

This is a busy slide, but as you can see, Sweden has the highest share of SMEs and own brands, followed by Norway, while Finland has the lowest. This directly correlates with profitability in each market: the higher the share, the greater the profitability.

The lower gray boxes show the share of own brands within the integrated business. As shown, this share has increased across all countries, driven by higher sales of workwear and PPE in all countries, which positively impacted the trading gross margin.

Moving on to some highlights of each market's development in Q2. When it comes to Sweden, total revenues increased by 3.7%, driven by both organic and acquisition-related growth.

Organic growth was primarily driven by direct sales and the non-integrated business, i.e., welding and battery, while store sales remained stable. Growth in direct sales was driven by increased demand from larger manufacturing customers as well as customers in the defense industry.

EBITA improved as a result of higher volumes, a stronger gross margin and cost savings. Revenue in Norway increased, supported by currency effects and acquisition-related growth, but partly offset by negative organic growth.

The decline was mainly attributable to weaker demand in the oil and gas segment, which began to slow down during the second half of 2025. EBITA was in line with last year, as weaker oil and gas volumes were partially offset by higher-margin volumes in other customer segments.

Several initiatives are underway to increase sales activity, strengthen margins through active sales and assortment management, and improve operational efficiency. When it comes to Finland, sales continued to recover among larger industrial customers, supported by improved store sales.

This development more than offset the impact of the two larger customer relationships that have now largely been phased out. As Samuel mentioned, the efficiency program in Finland is progressing according to plan and has strengthened operational execution across the business.

EBITA improved during the quarter, driven by higher volumes and the ongoing realization of cost savings. Operating cash flow improved compared with last year, driven by higher EBITDA and lower working capital.

Inventory levels continued to decline following strong sales of workwear and PPE during the quarter. While our capital efficiency initiatives continued to contribute positively in Q2, there is still room for improvement.

Our ambition is to reduce net working capital as percentage of sales from the current 28% to 24%, which was the level achieved in 2022. When it comes to investing activities during the quarter, that mainly related to organic investments, the acquisition of the two welding companies and also earn-out payments.

The capex to depreciation ratio was 0.8 on a rolling 12-month basis. Financing activities primarily related to amortization of the revolving credit facility and leasing liabilities, and also dividend payment.

When it comes to leasing amortization, that was higher than the normal level in Q2 and lower than normal level in Q1, due to some lease payments being deferred from Q1 to Q2. However, for the first half of the year, the total leasing amortization remains at a normal level.

Net debt decreased further during the second quarter, as strong operating cash flow more than offset the recent acquisitions of the two welding companies as well as dividend and earn-out payments during the period. Leverage continued to improve in Q2, supported by both higher EBITDA and lower net debt.

The net debt to EBITDA ratio was 2.1 at the end of the quarter, compared to 2.5 at year-end, which is well below our financial target. Our covenants relate to interest coverage and equity-asset ratio.

All these covenants were fulfilled at the end of the period, with good headroom before reaching the thresholds. As mentioned earlier, we also recently refinanced the business and currently have available cash and unutilized credit facilities of close to 2 billion SEK.

Combined with healthy operating cash flow, this provides us with a strong financial position and the capacity to continue investing in organic growth and capitalize on attractive acquisition opportunities. Handing over to you, Samuel, for summary and outlook.

Yes, thank you. To summarize, again saying this was for us a positive quarter.

We are happy with the 30% uplift in EBITA, the stronger cash flow and also that we continue to grow organically. We're also happy with the recovery progressing well in Finland.

We are doing all of this despite then that our customers still remain cautious and the demand focus on their daily needs. Positive Q2.

If we then look a little bit ahead for the second half, it's important to remind ourselves of our leading market position supported by this compelling offer that we have, which we very much believe is relevant also as we move along. This is a sales-focused industry and a sales-focused company, and we will continue to be so.

Sales will very much be focusing on both broadening the customer base, bringing in new customers to us, but also cross-sell all of our products across all the companies and the entities we have. This has always been a focus for Alligo, and it will definitely continue, and then we will add a few more flavors to it as we move along.

There is also a potential in Alligo to enhance execution both in how we drive cost initiatives and growth initiatives and part of our acquisitions, and we will work on this as we move along during the second half. Then, of course, important to mention, we will also shift a bit focus in our common efforts towards Norway, which has a little bit less of growth and improvement than the rest of the countries.

Focus of Norway here in the coming months. That's it from us now.

Now we shift over to questions.

Yes, good morning, Samuel and Irene, and thank you for the extensive start-up of this call. A couple of questions to follow up on that.

Finland obviously stands out in the quarter when you're looking at the margin improvement. Do you see that we are now reestablishing that operation on a sustainably higher level, or was there some sort of additional things that helped you in Q2 there?

If we look to Finland, as you say, we're very positive about the progress we have had in the efficiency program and how it's developing. There is always some element you could say of one-off or bigger customer deals or whatever that impact a quarter.

On the other hand, we actually see quite strong momentum across the customer base. I would not say that it's kind of linked to one-offs as a whole, it's rather a good progress overall.

Nothing really exceptional standing out. Looking at Patria, is that now up to what you would see as a normal kind of take rate during a quarter?

Yes. I think so.

It fluctuates monthly, but that business is growing continuously. We will grow together with Patria in the future.

Excellent.

Norway, I noticed that the small acquisition you did had a negative contribution in the quarter. Is that seasonality in that operation, or is something else happening there?

Noticed, there is a strong seasonality in that acquisition. It's pretty much based on very high sale around the Christmas season.

This has been the pattern of that company before, and it's obviously the pattern also this year.

When you look at the Swedish operation, you still talk about say good traffic, but maybe not getting the basket size up. Do you feel that say more recent sales initiatives are starting to gain more traction, because it feels like there is more of a general kind of positive feeling in the Swedish market at least?

Yes and no. Definitely lots have been done in the sales arena to both, of course, generate new and more customers, but also, of course, creating assortment and campaigns, etc., to fill the basket even more.

I think we are doing a lot of good activities, but from our perspective, customers are still cautious. They are quite specific on their needs, and they tend to fill only them.

That is probably the same as it has been for quite some time.

Sounds very similar. Irene, looking at the earn-outs in the quarter, is that higher speed or is that the annual adjustment that we saw coming through normally in Q2 or is this a high rate coming through in the rest of the year as well?

Yes. We had a positive effect in Q2 last year of 4 million, and it turned out to be 9 million in this quarter.

Oh,

sorry, I need to rephrase that. I thought more about the cash flow impact, the 22 million that went out in payments.

That was earn-out payments that was actually paid out.

Exactly. Then looking forward into the next couple of quarters, are there similar amounts coming, or is this the annual impact coming through in Q2?

Yeah. We have some more earn-out payments, but it will be on a lower level.

Samuel, just looking at say your first view coming into the company, it's a good description already, but when you compare to your previous employer and the kind of same size type of decentralized setup, do you see any low-hanging fruits that could be implemented in the Alligo model compared to what you are used to? A

good question, obviously. I've taken the opportunity as new to travel around and been both to Norway and Sweden, visiting stores, customers, our logistic centers, etc.

Of course, meeting a lot of people. Really really nice and positive, with high energy across.

As you say, there are many similarities, even if the business model as such is a bit different, but the decentralized setup as a whole. We touched on it a little bit, you can steer sales in many different ways in this type of context.

I think here we will add some new flavors as we move along to how we prioritize and how we steer our sales efforts. You can also optimize a lot how you work with execution and how you get benefits out from various initiatives in this type of decentralized organization, and that we will also work on as we move along.

I think we can improve a few steps there. Then it's all about a lot in these companies about winning the local market, being best in town and the one the customers in that specific city wants to buy their inventories from.

Of course, we can always also develop that model and strengthen ourselves even further. That we will work on as we move along.

Just to get a feel for it, when you now traveled around and how many cities would you feel where you have met say management teams that have already established that kind of position and how many are work in progress?

Just to be honest now, it's a mix, but to be honest, I've seen many places where I'm confident that we have a lot of ingredients in place. Where we really have a strong position locally, we know the customers really well, and we are appreciated for what we do in our services.

I think we have a lot of good examples where we want to be, and then of course there are a few as well that we can improve. That's the real situation.

Fair enough.

No, I guess I wouldn't get a number out of you, so that's fair. Then just one of the things that obviously has been a key part of the Alligo growth story going back has been the acquisition-based growth and building up the non-integrated business to a large extent.

Do you see the same potential for that, and do you see say an acquisition pipeline that could support it in the near term?

If you take the broader picture, I definitely see a potential, as we talked about, and strengthening our position with these technology areas, where we have this nice kind of partly overlap of products and customers, but we also add a lot of product range and customers that we can cross-sell on. We can utilize our scale and synergies across the group, super positive on that way to complement our core business.

Then in terms of pipeline, I don't think we comment on ongoing discussions in that sense, but definitely there are opportunities on the market, and we will continue to pursue them and maybe accelerate that a little bit as we move along.

Sounds very good, and good luck, both, and all the best.

Thank you.

Thank you.

Hi, this is Henric at ABG. I was wondering if I could maybe get your view on the bridge and timeline to get the 10% margin target that the group has.

I think I hand that question over to Irene. Yeah.

Of course,

the financial targets are still there, and we're progressing and moving in the right direction. Of course, it's difficult to say when we will reach the financial target.

We need the market to recover a little bit, but as you have seen in this quarter, we have a strong operating leverage. When we gain volumes, we will have a good impact on the EBITDA margin.

If we get a little bit help from the market, we will reach the financial target at some point in time. That also means that Sweden need to be at a 12% margin, and Norway and Finland need to be around 7 and 7% to 8% to add up to 10 to a 10% margin, which is our financial target.

With some more volumes and market recover, we will be there, and we were almost there in 2023 when we reached 9%.

Just to clarify on Finland, you had a much-improved margin in the quarter, and I think, in general, H1 of Finland has turned out better than we sort of expected and what you communicated before that. I'm just wondering, just to clarify, is this a reasonable margin level to expect in the near term or is there anything that maybe means we shouldn't extrapolate it?

If I should comment on that, as we have said, the program is progressing as it should and they are doing really well, and we also see the Finnish market a bit more positively than the others right now, it's a bit ahead of the curve. With that said, yeah, I think there is reason to believe that we will continue to deliver quite strong in Finland.

Then exactly what that means, let's see how we move along.

Very good. In Norway, we may have maybe the opposite development, that it's come in a bit weaker than we hoped for.

I'm just wondering if you could mention any specific actions that are being taken to reverse that trend. I would say

it's an interesting situation in Norway. Obviously, as we said, oil and gas have been a big source of business for last couple of years, in I think the Norwegian society overall.

We knew, of course, also that some of those projects would come to an end and face out. We've been working heavily in parallel to broaden that customer base, to work with smaller construction companies and also bigger construction companies, etc., and been running quite some initiatives.

We have actually mitigated quite a bit of the drop from oil and gas with other customers. It is positive if you look on everything but oil and gas, and that's a good start.

Anyway then, the market is, as we said, stable. It doesn't bring us any additional benefits.

We have to sort of say solve it ourselves by winning market and winning market share. I think the team is progressing well with a lot of initiatives, but we definitely need to make sure that continues to fall out well, so that we regain momentum as a whole.

Okay. Thank you.

Just one small, detailed question on the numbers. In the adjusted EBITA figure, do you adjust for the revalued contingent additional purchase considerations or not?

No, it's not included there.

Thank you.

we have actually three questions from Emanuel Jansson at Danske Bank. We'll start with the first one.

And, "Store sales in Sweden are described as stable, but not growing. What are the specific initiatives to transform stability into positive organic growth, particularly within the SME segment?"

So.

Starting there. It's right, and this is a lot of the core, you could say, in our business and also in our profitability.

Very much focused on the SME customers and to the store channel in Sweden. To be specific, this is all about sales and how we meet with the customers and how we secure that we are relevant in terms of assortment and pricing and also to some extent the campaigns we run.

There is a number of initiatives currently ongoing, which is a bit targeted then to various segment groups. That could be industry or constructions, etc., and where we try to be as relevant as possible, both getting our own brands out with clothes and workwear and protection, but also the full portfolio to that customer base.

More or less repeating what we said before, it's two things that needs to happen. One is, of course, to broaden the customer base, to get more customers in, and secondly to cross-sell on existing customers so that they really utilize the full assortment, and there are initiatives ongoing for both those two opportunities.

Thank you. The next question from Emanuel is regarding Finland, where two larger customer relationships have been phased out and the cost structure has been adapted.

How much volume was lost in those relationships?

I think that we have communicated that it's around €10 million on an annual basis.

Yeah. Whereof roughly a bit more than half is phased out now during the first half of the year.

Yeah.

Still some remains, but the majority is phased out and has been then recovered by other customer relationships.

Yes, and then the final question from Emanuel: "What is your general view of organic sales growth possibilities in the near term? Impressive earnings growth despite low volume."

If we start with the general view of organic sales growth in the short term, it's all about hard work. We don't see that the market will help us, and to be frank, we should have a model where we win market share and win business, to say, regardless of where the market is going.

Then it's always nice if it's going upwards rather than downwards, but the focus for us is to always be more relevant than before to our customers. That takes time.

It's a big effort, especially when we talk about small customers that we generate in, and even if we do that well, of course, you build that base gradually. In the short perspective, continuing as is and of course pushing as much as possible, but we should also be honest and say that it is a gradual uplift of the customer base that we should expect.

Then the second part there about the earnings, I take that more as a comment.

Exactly. I think so.

Can only agree.

Yeah. That were all the questions from the online written questions.

Samuel, please go ahead with your remarks. Okay.

Then

let's summarize and I think the key thing here to remember, which we also bring with us, it's a positive quarter overall. We are happy again with the development of our EBITA, we are happy with how our cash flow is developing very strongly, and that we still have organic growth despite the stable market conditions that we face.

We bring that with us and continue to push into the second half of the year. With that said, I only want to also take the opportunity to wish everyone a nice summer holiday and look forward to see you again back in August.

Okay. Thanks for today.