Good morning, and welcome. We are here to present the third quarter from BHG.

I am joined today by our CFO, Jesper Flemme. I will start, and then Jesper will take over and take us through the financials.

I will summarize, and then both of us together with Jakob Nylin, Head of IR, will be available to answer your questions. We are pleased to report another strong quarter for BHG, with solid growth, improved profitability, and continued progress on our strategic priorities.

Most importantly, we are demonstrating that our business model can deliver profitable growth while maintaining tight cost control. Next slide, please.

Let me start with a key message of this quarter: our strategy is working, and the results are becoming increasingly visible. We have now delivered 12 consecutive quarters, or three full years, of year-on-year profitability improvement in every single quarter.

I must admit that we are somewhat proud of that. We are also proud to report double-digit growth and a plus 30% profitability increase in this quarter.

Importantly, all three of our segments contribute to both growth and improved earnings. What is particularly encouraging is that growth is translating into higher profitability, demonstrating the scalability of our operating model.

We continue to execute on our strategy, and it is encouraging to see that we, with our focus on AI, are making tangible progress. We have moved beyond experimentation and piloting, and are now seeing measurable benefits in both customer experience and conversion, as well as in operational efficiency.

Next slide, please. Looking at the headline financials: we delivered a strong quarter across all three key measures: sales, earnings, and cash flow.

Net sales reached 2.9 million SEK, representing reported net gross sales growth of 11.7%, of which 9.3% was organic. Adjusted EBIT increased by 32% to 122 million SEK, an improvement of almost 30 million compared with last year.

This corresponds to an adjusted EBIT margin of 4.2%, an improvement of 0.7 percentage points versus last year. We also delivered strong operating cash flow of 92 million SEK, almost 40 million higher than last year.

For us, the important point is the combination of these results: we are growing, we are improving margins, and we are generating cash. We have demonstrated that this is a structural development rather than a short-term recovery.

Next slide, please. Turning to growth: we have now delivered eight consecutive quarters of positive organic growth.

As you can see from the chart, the growth rate has remained strong, with 9.3% growth in the third quarter. What makes this particularly encouraging is the broad-based nature of the performance.

As mentioned, all three segments contributed positively, and all our major markets grew. We saw particularly strong sales development in Norway and Eastern Europe.

On market development: we unchanged believe that two underlying important drivers remain in place for future growth. First, we expect the underlying markets to continue their recovery, driven primarily by growth in disposable income.

Second, we see further structural growth from increasing online penetration, both from the continuation of the long-term shift from physical retail to online that we have seen over the last plus 20 years, this primarily driven by the convenience of buying online, and where online penetration is still low in our categories. We also believe that AI will accelerate that development by making online shopping the best alternative for buying complex products.

Already now, and with the support from AI, the best advice you will get online from AI rather than from sales staff in stores. Next slide, please.

Our strategy is working. This slide is particularly important because it illustrates the longer-term development of the group.

Looking beyond individual quarters, the trend is clear: over the past three years, we have consistently improved profitability, and our rolling 12 months adjusted EBIT margin has now reached 4.1%, and we are on a good trajectory towards our short-term financial target of 5%. There will naturally be quarterly fluctuations, but the underlying direction is encouraging.

This improvement has not come from one single initiative; it's the combined results of strengthening our commercial execution, simplifying the structure and organization, improving operational efficiency, and maintaining a strict cost discipline. Next slide, please.

One of the most important elements of our strategy is building a more scalable business model, and this slide provides a clear illustration of the progress we have made. Since we came back to growth in the fourth quarter of '24, our rolling 12 months sales have increased by 12.5%.

During the same period, our organizational costs have increased by only 1.7%. In other words, sales have grown approximately seven times faster than our organizational cost base.

This is exactly the type of operating leverage we are working super hard to achieve. We have simplified the group, we have reduced complexity, and we have established clear accountability within our platforms.

As a result, we are now able to support significantly higher sales volumes without a corresponding increase in cost. Our ambition is simple and clear: to grow faster than our cost base, consistently and sustainably.

Next slide, please. Let me briefly highlight three areas where we continue to execute on our strategic plan.

First, AI: this is an area where we are moving quickly, and where we already are seeing measurable business impact. We focus on AI from three perspectives: AI agents, where we now have nine agents in production, and as example of measurable improvements, I can mention at Bygghemma, our AI-powered product guidance solution that we call Fråga Bo is now delivering approximately 3.5 times higher conversion among customers using the service; and at Nordic Nest, our AI customer service agent Nestor is now handling more than 40% of all customer service tickets; and these are just two concrete examples of how AI can improve both the customer experience and operational efficiency; and we are following our strategy to trial and pilot new ideas across the group and scaling what works; but also what we call AI ways of working, how we use AI in all aspects of our daily work to take better decisions and become more efficient; if AI agents has been a focus for us in '25 and '26, AI in ways of working is super high on our agenda for '26 and '27; another area within AI that is currently of great importance to us is what we call AI visibility; we all know that search patterns online are changing at a super high pace, and being visible on the LLMs is already of high and will be of even higher importance; to accelerate and measure the progress on AI visibility across the group, we have introduced a common AI visibility progress protocol consisting of 22 defined criteria across four areas against which every company's progress is measured monthly; and as a result, we are pleased that as late as last week, Bygghemma won the 2026 Swedish SEO Award for AI search visibility, top best AI visibility across all categories in our home market of Sweden.

Second, unique assortment: we continue to focus on and continue to strengthen our differentiated product offering. The logic is straightforward: by offering a product that are unique, we reduce direct price comparison from the price-matching algorithms that are putting our gross margins under pressure.

At the same time, by working more directly with manufacturers, we can improve our product margins by taking out the middlemen. This is a super important priority for us, as it enables securing a long-term, differentiated strategic position, while at the same time also improving our long-term profitability.

Third, M&A: with a much stronger financial position, our focus remains on selective bolt-on acquisitions that strengthen our existing platforms. A good example is the acquisition of Hillerstorp, which we finalized in the third quarter.

It adds a well-known Swedish brand in a large and attractive category, and enables our ambition to increase our share of unique assortment. With that, I will leave the word to Jesper to go through the financials.

Thank you, Gustaf, and please turn to slide 8. Net sales grew by 11.7% to reach 2.9 billion SEK, with strong organic growth of 9.3%.

Value Home delivered its strongest growth so far this year at 20.5%, with strong furniture sales. Premium Living also delivered double-digit growth against strong comparison last year.

Home Improvement grew organically by 3.9% against 14.1% last year. Bathroom sales last year partly benefited from the higher ROT tax deduction, making the comparison more challenging.

Looking at geographies, all our major markets grew, with particularly strong sales growth in Eastern Europe and Norway. Our largest market, Sweden, grew by 4%.

Turning now to slide 9 and profitability. Adjusted EBIT increased by 32% to 122 million SEK, with an adjusted EBIT margin of 4.2%.

All three segments contributed to the higher profit. In Value Home, strong sales growth helped offset the pressure on product margin, and the adjusted EBIT margin improved to 6.0%.

Premium Living delivered the largest margin improvement, from 2.2% to 3.8%, supported by growth and effective cost control. In Home Improvement, earnings also increased, with a solid margin of 4.6%.

Move on to slide 10, an EBIT bridge. Our EBIT margin improved by 0.7 percentage points compared with last year.

Starting with product margin, a stronger margin in Home Improvement helped offset currency pressure in Value Home, and the group's product margin remained stable. Last mile delivery costs had a negative impact on the margin, mainly due to higher fuel prices.

At the same time, we continue to benefit from our improved cost structure and good cost control, with sales growing faster than our organizational costs. All in all, our EBIT margin reached to 4.2% in the quarter.

Moving on to slide 11 and cash flow. Cash flow from operating activities amounted to 92 million SEK in the quarter, compared with 52 million SEK last year, mainly driven by higher EBITDA.

Working capital had a negative impact of 115 million SEK, broadly in line with last year. This follows our normal seasonal pattern, as we build inventory ahead of Black Month.

Turning to the graph on the right, operating cash flow for the first nine months amounted to 380 million SEK. This covered both investing and financing activities, and our cash balance increased from 301 million SEK at the beginning of the year to 454 million SEK at the end of September.

Slide 12, please. Turning to our financial position, our leverage ratio was 2.1 times at the end of September, compared with 3.4 times at the same point last year.

Net debt amounted to 1.0 billion SEK, down from 1.2 billion SEK a year ago. Both lower net debt and higher earnings contributed to the improvement in leverage.

We also had 800 million SEK in unutilized credit facilities at the end of the quarter. With that, I will hand back over to you, Gustaf, to summarize and conclude.

Thank you very much, Jesper. Next slide, please.

Let me conclude this by summarizing four key messages. First, profitable growth: we delivered another strong quarter with growth and improved adjusted EBIT in all three segments.

We have now achieved three years of consecutive year-on-year profitability improvements in every single quarter. Second, operating leverage: sales are growing significantly faster than cost, and growth translates into higher margins.

This confirms that the strategic work we have done to simplify and strengthen the group is delivering. Third, we are executing on our strategy, and we are making tangible progress on AI, where measurable results in conversion, customer service, and operational efficiency.

We are confident that we are still in the early stages of realizing the full potential of AI improvements. Finally, looking ahead: we are now entering Black Month, which marks the beginning of one of our most important trading periods of the year.

Our teams are well prepared, and we are confident in our ability to execute. Overall, we are pleased with the progress we have made, but we remain focused on the opportunities ahead.

Our priorities are clear: maintain growth momentum, continuing improving profitability, and building an even stronger and more competitive BHG. Thank you very much, and we will now collectively do our very best to answer your questions.

Thank you.

Yes, good morning, Gustaf and Jesper, couple of questions from me. Maybe starting off with the gross margin, the reported gross margin is down slightly, but the product margin is flat.

You state headwinds when it comes to sort of purchasing, when it comes to the dollar. You talk about last mile.

You didn't mention freight, but I assume that's also a headwind. All those three continue to be quite bad in the near term.

How does that stack up against an even more unique assortment? Can that neutralize the negative effects from macro, to speak?

Ooh, that was a lot of components, Daniel, but we'll do our best. I will start, and Jesper will fill in.

On general level, yes, US dollar had some effect. Last mile, fuel prices had some effect.

You're probably right that also freight has an effect, but they're not huge, and I think we balance them quite well. There is effects, and of the ones mentioned, I would say that the US dollar is fairly big in Value Home, so that is to be taken into account as we mentioned in the report.

Also across the segment, last mile deliveries has a little bit of an uptick, but nothing crazy. Can you expand on that, Jesper?

I think timing is the hardest one to explain, but in this quarter especially, the biggest effect comes from revaluating goods in transit, so that's a one-time effect. Then the effect in the Value Home segment where the US dollar is the greatest, it's important to remember that that effect is the biggest in Q2.

As you say, of course, a strong US dollar will affect purchasing prices. It affects the segments differently.

Value Home is hit the hardest, and that effect will arise mostly in Q2 next year.

That's related to outdoor furniture.

Yes, the big season for Value Home, which is basically to a large extent in Q2, and that is primarily where we're buying from the Far East, which is buying in US dollars.

Yeah. All right, okay.

We'll see when we get there. I assume there's some lead time also, I guess you're sort of currently making those purchases, or soon at least.

Just so, going back to top line, and strong top line, I have to say, despite the fact that you do face headwinds when it comes to deductibility in Sweden, and I guess that's the reason why Swedish growth is quite sluggish in the quarter, and you seem to be doing extremely well in the rest of the Nordics, maybe not Finland that much, but decent. Norway especially has been on a quite winning streak now for a couple of quarters.

Any particular reason that you want to shed some light on why?

Gustaf here. You're absolutely right.

We're very proud of top line, I should say. I think we've done a really good job, as you mention, especially I would say considering the tough comps.

Coming to the markets, as you say, happy with Nordics in general, also Europe on a general level, Eastern Europe the strongest, and as you say, Finland probably the toughest, but we have positive growth also there. Coming back to Norway and to some extent also euro currencies, there we have a little bit of a pricing advantage because of the euro development, and I think that partly is the explanation of why we have a good development on those markets.

We should also say, as we've said before, that we have a huge focus on geo-expansion, and we have focus on that for a long time. Many of our businesses have opened in these markets, and have also strengthened their business in these markets.

I would say it's a combination of those two: we're doing a better job with more businesses, and also that we have a pricing advantage from the currency effect.

Okay. Good.

Then maybe sort of you touched upon it was quite good chart that you showed on our organizational cost, and clearly that has giving you operating leverage in the past couple of quarters, and I think you wrote it was up 1.7% on a CAGR basis. Is that a sort of a reasonable number to assume in terms of organizational cost growth going forward, or is there any you've been holding back on massively where you need to invest a bit more in the coming quarters?

I think it's a fairly good indication on what we're aiming for. On a general level, we've always said that cost will increase roughly with inflation.

I think that now the ambition is even higher because we are becoming more efficient from some of the new tools, including AI. I think it's a fairly good proxy of what we're aiming for long term, and then of course there will be fluctuations, but long term I think it's a decent direction.

If we can hold that, I think we should be very proud.

Okay. In addition to that, marketing cost or spend, how do you view that currently?

Sorry, say that again?

Sorry, if you add marketing spend to the mix, how do you view that currently?

I think on a general level, it's challenging. I think we're doing a good job.

The organic traffic on a general level, I would say, is going down, and that is putting pressure on online marketing. I think most of our businesses are handling that really well, to be honest, and putting a lot of focus on it.

We have identified the drivers of how we can compensate on organic traffic, and one of them is delivering good content, so that we put a lot of focus on. Many of our businesses can fully compensate for that, some of our businesses not fully yet, but it's an area we have under focus.

It's a tough area where I think we're doing a really good job.

Okay. We talked during the latter part of the summer that the fact that the Chinese are on the defensive is alleviating some pressure on marketing and search.

Is that maybe not that meaningful of a change?

It's always hard to measure. We said in the past that it had a fairly limited effect on us, and I think it goes the same in the other direction right now, that it has a quite limited effect on our numbers, because we've never really competed on the bulky items where they never have been big.

Of course there is categories where that could affect us, but it's not something we have tried to quantify, and we see it as fairly limited.

Okay. Good.

Then just maybe a last question for Jesper. Could you just give an updated guidance on earn-out/deferred payments and the plan for the coming quarters, and what was the earn-out payment in this quarter?

Yes, of course. Earn-out payment this quarter was 32 million related to us acquiring half of the minority in Nordic Nest.

We now have 204 million on our balance sheet, and forecast is that we will pay 50 million in '27, and the remaining 150 million will be evenly split between 2028 and 2029.

Thank you. That's all for me.

Thank you very much.

Hello, I'm calling in for Benjamin from ABG. I have two questions for you.

You mentioned freight headwinds in the report. Is it possible at this stage to give us any indication of the magnitude of this near term, whether you expect a large or smaller impact in Q4?

I wish I could give you a number, but we don't. On a general level, yes, there is freight increases, but they're quite handlable.

I think all this year, it's been going up and down a little bit, but there's not been any major price increases, and I think that's what we're currently seeing as well.

Just going back also to the answer we gave on the currency question, that remember the timing, that Q2 is the most important for sourcing from Asia. End of Q1, early Q2.

Thank you. There you also note that you're well prepared for the last quarter of the year.

What does this mean in more concrete terms? Is this comment on the inventory quality, or anything else?

It's of course a comment on inventory quality, and of course one of our biggest focuses is making sure that we have an attractive offering, and that we really negotiate that down on product level, on price on product level. That's been a huge focus, and that's something we've been preparing basically since Q1.

Now very much it comes to campaign planning: how do you play the different dates, what do you offer in different periods, how do you communicate? It's a big focus for us, and many of our companies spend a large part of the year preparing for what is coming up now.

It actually to some extent already starts in October because you need to work on your pricing to be within compliance for November. It's a very important sales period, both November and then also the beginning of December, which is basically holiday season.

I think we've done a good job. We've reached out to all the companies, we've had separate sittings with all the businesses, we have had common sittings with all the businesses, and I think we have done what we can to be well prepared, and my feeling is that we're better prepared than ever.

Perfect. Thank you.

One last question: you grew significantly better outside of Sweden this quarter, have you made any changes to the marketing strategy or anything else that could explain this?

No, not really. I think, as I mentioned, there's two factors.

One is our focus on geo-expansion; many of the businesses have opened up these markets, and some of them have put more pressure on it because we've been there for some time. That is one explanation.

The other explanation comes from currency, and a bit of a pricing advantage in the euro-based and also Norwegian krone-based markets.

Thank you. That's all I had.

Thank you.

All right, it's me again. I might as well continue.

Can you say anything about the trend in Sweden during the quarter, just sort of thinking about the renovation deductibility being less this year, and it's really sort of took off in Q3, Q4 for you guys last year?

You're absolutely right. The comps from last year is very tough, and part of that comes from Home Improvement, which had a very strong third and fourth quarter.

With that considering, I think we're doing a really good job in the third quarter, holding up against those high comps. Of course, we had some tailwinds last year from the ROT, but as mentioned, I think we're holding up really, really well, and we expect to be able to do that also in the fourth quarter.

On general, growth was higher at the end of the quarter than in the beginning.

That's a good point. Aha.

Would you say that sort of bathroom renovation-related sales were down in Q3?

We don't comment on particular categories, but as I said, I think we did a really good job in holding up against the tougher comps in these categories.

Yeah. Of course

below group growth, of course.

Below group growth, yes.

Yeah. Value Home grew quite significantly, to say the least, in an environment where IKEA is lowering prices quite a bit.

Are you seeing any impact of their actions?

No, can't say that we do. I think we're doing a tremendous job, just as you said.

We have two of our businesses in Value Home that is doing a really good job in growing the business and maintaining the cost levels, and getting that leverage of profitability.

Also there, sort of rest of the Nordics grew quite strongly from very low bases, of course, but still, any comments on that?

Very much of that comes from Eastern Europe, where we have a large business within Value Home, and they're doing a really, really good job.

Okay. All right.

See if there's anything more. Just also for Jesper, what is a reasonable tax rate?

It's been jumping up and down quite a lot.

Yes. I think you should assume somewhere between 21% and 22%.

That should be a reasonable tax rate going forward. The reason for the tax rate being strange in this quarter is of course the effect in the P&L from us liquidating a company where we had to reclassify translation differences from equity to the P&L.

Yeah. Maybe also lastly on consolidated platforms quite massively from 25 down to eight, if I'm remembering things right.

You still have the Bygghemma platform to go. Could you shed some light on what is happening there?

Yes, you're absolutely right. We've done a big job on consolidations.

The one we still have left to finalize, or we have done a significant part of it, is the Bygghemma Nordics consolidation. Big part of it is consolidated.

Now it's mainly consolidating Finland into the Nordic group, which has been done to some extent on organizational level, but has not been done fully on IT platform level. We have purposely actually put a hold on that, because we're going into a very important sales period right now, as mentioned, and we don't want to lose commercial focus.

That is the balance that we've been talking about for quite some time, of finding the right time to do it, not losing commercial pressure. It's a voluntary decision, but we should also be clear that it has taken longer than we anticipated.

When is the right time? Is that January then, or is that really the low, low season?

We haven't really decided. We have just said that now we focus on the fourth quarter, and then we decide if we want to do it before the important sales period, mid next year, or if we decide to do it after that.

Our focus is continue to growing growth, and not losing that commercial pressure.

All right, understand. Guys, that's all for me.

Thank you.

Thank you very much.

All right, we have one written question here. Could you please elaborate on what other income consists of?

Other income in this quarter is the gain from us liquidating a company. As I said, we then reclassified translation differences from equity to the P&L.

It's a non-cash transaction with no impact on underlying performance. That was all.

Then we just say thank you very much. Thank you very much for listening in, and if you have any further questions, please don't hesitate to contact us.

Thank you very much.