Thank you, and good morning and welcome, everyone, to the Q4 2025 earnings call for Lifco. We will start with the overall summary on page number 2 in our presentation.

We can start looking at the quarterly numbers where we can conclude that Lifco Group then had a sales growth of 6%, of which organic growth was 4%, acquisition growth 7%, and then we had, like many others this quarter, a negative exchange rate effect. In our case, the negative effect was 5% on sales in the quarter.

If we go further down, we had an EBITA growth of 5%, net profit growth of 7%. In this quarter, we had a strong growth in operating cash flow with an increase of 23% thanks to our increased results and also some release of working capital.

Earnings per share grow in the quarter with 7%. If we then look at the right-hand side of the graph and and take the full-year figures, we had a sales growth of 8% in '25, of which organic growth was 4% growth, acquisition contributed with 7%, and we had for the full year a negative exchange rate effect of 4%.

EBITA grew for the whole year with 7%, and net profit growth was 10%. Also for the full year, we had a solid operating cash flow of growing 11%.

Our earnings per share grew for the full-year numbers with 10%. I'd also like to just highlight that the Lifco board has proposed a dividend of 2.7 Swedish krona per share, which is an increase of last year's 2.4 Swedish krona per share.

This, of course, proposal that will be finalized as a decision on the annual meeting. If we then go further to page number 3 in our investor presentation, we can have a bit more deeper look at the different business areas.

If we start then with Dental, we had overall a stable underlying organic development during the full year 2025 and also in the last quarter the same pattern. For the full year, sorry, both in the quarter especially and also for the full year, we had negative effects from currency, which then overall led to moderate increase in profit of 2% for the full-year numbers and 1% in the quarter.

Quite stable underlying development in this area. In Demolition & Tools, we have during the whole 2025 seen a slightly improving market conditions with some organic growth.

This is then following quite difficult year in 2024 when the markets were very weak in in most part of the Demolition & Tools area. The organic growth continued also in the last quarter, but was offset by even more negative exchange rate effect when we translate our numbers into Swedish krona.

During the Q4, we also the margin in Demolition & Tools was slightly lower than previous year due to some product mix effect. I would also like to highlight that we had the opposite situation in Q3.

This is an area where we have and and has always had some volatility in margin between different quarters depending on on product what products are are are taking a bigger share of the total in the area. For the full year in 2025, Demolition & Tools grew the EBITA with 9% despite quite strong negative foreign exchange effects, and the margin over for the full-year period increased with 1 percentage point.

If we then go further down and look at our Systems Solutions area, we have now mentioned throughout the year that it's been a somewhat challenging year for for many parts of Systems Solutions, especially in the Transportation Products and Special Products area. They they have actually faced more difficult market conditions compared to previous years.

The lower sales volumes in in parts of these areas led to slightly lower EBITA margins. If we then talk a little bit about other areas, Infrastructure Products saw some improvements in 2025, both for for the full year and in the quarter.

That tags to the same trend that we saw Demolition & Tools, a slightly improving construction markets and infrastructure markets is making this area coming back organically. Environmental Products had a stable development during '25.

As you all know, Contract Manufacturing had very strong growth in the first 9 months and more stable development in the last quarter of 2025. During the last quarter, Systems Solutions improved EBITA with 10% despite also here negative foreign exchange, but also, of course, helped by a number of acquisitions that contributed to this growth.

Margin was slightly lower than previous year due to also here we have some negative product mix effects that areas with with slightly lower margin is is having a better organic development in this area. If we go further to page number 4, we can then take a little bit of a step back and take look at the longer perspective of Lifco.

Before we do that, we can then also give some information on how the EBITA growth for Lifco in 20 20 2025 was split. We had another year with strong contribution from acquisitions of 10% in '25.

As you can see here, we had flat organic EBITA development in throughout the year. This is then mainly due to to the weak market conditions in parts of Systems Solutions that that has led to lower sales volumes and then, yeah, shrinking organic profits in some parts of this.

Then foreign exchange had a negative impact of 3% for the full year on EBITA level. If we then look at at a longer time period of Lifco, we can then conclude that for the last 11 years, we have had an average growth from acquisitions of 12% per year.

The average organic EBITA growth has been 6%, and I think now we have also had a couple of years with tougher market conditions, so even with those years included in the in the data, we we have been able to to grow on average 6% per year throughout the last 11 years. If we go further down on on this slide, you can see then also the split of the average organic EBITA growth on different business areas.

Dental, quite stable development with 1% growth on average per year. Demolition & Tools having a higher growth of 9% per year, and Systems Solutions then have had on average 11% organic growth over the last 11 years.

Then we can go further into page number 5, also a long-term perspective graph, and here we can just see that Lifco has grown the EBITA, and now we talk about CAGRs, compounded average growth rates, of 18% from 2015 to '25. Earnings per share has grown 16%.

Our net debt has actually been is lower than at the time of the IPO, we're now sitting at at 1.1 interest-bearing net debt to EBITDA. We had a strong growth in operating cash flow, and also we've been growing our dividends with around 17% CAGR.

Also on this slide, we also list how much we've spent on acquisitions in the years. Also on the bottom of this slide, you can see basically what we paid equivalent for 100% ownership of the companies that we've taken in in every year, and also the estimated profit impact of the companies that we have acquired in each and every year.

If you look into details of there, you can see that we continued to have we're adding high-margin, strong companies, and we're able, through our very hard work and very diversified screening of companies all around Europe, to find very high-quality companies at fairly reasonable valuations. If we then go further down to page number 6, which is maybe the most important part if you take a long-term perspective.

Short-term cash flow is, of course, a volatile measurement. It can vary between between months and quarters.

If you take a very long-term perspective, cash flow is the best way of measuring the underlying performance of a company, and especially when you measure it on the cash flow per share. Just to clear the data that we have here, this in this slide, we then look at the free cash flow per share after CapEx and after all the interest payment, taxes, et cetera, and the only thing we don't include is dividends and acquisitions that we view as as more decisions on the on the on the board level and annual meeting level.

If you look at that measurement, we have actually grown cash flow per share with 22% CAGR since since Lifco was listed, which basically means nine times higher cash flow per share than back to 2014. Very strong development here.

This is also a fundamental part of why we're able to to continuously grow Lifco from acquisitions without stretching our balance sheet. If we then go further down to page number 7, we can also see on a more graphical level that our net debt to EBITA ratios are very stable, you can basically it means that we are using our free cash flow in a stable way to to pay dividends and also make acquisitions.

We have net debt a total net debt including IFRS and and our option debt for future payments, it's of 1.7, down from from one year ago, and the interest-bearing net debt to EBITA is 1.1 times, which also down from one year ago despite all the acquisitions that we carried out in this year. This obviously means that we still have plenty of room to continue our growth journey, both organically and from acquisitions.

I would also like to highlight that our M&A capacity is continuously increasing. We took we take every year some steps to develop this, and we did also very good development in our capacity in 2025.

Then we can go all the way down to page number 33, when we just look at the acquisitions that we carried out in '25. In total, we announced 17 acquisitions with a total estimated sales level of 2.2 billion Swedish krona in combined turnover.

Once again, we have acquired in '25 a very good collection of companies. They have high margin, super niche, super specialized, and strong positions in their in their respective niches.

I'd also like to highlight, and this is not new for '25, but in general when we acquire these super niche, strong market companies, we also get very strong profit-oriented company cultures. Very happy to welcome these companies into to the culture that's matching Lifco in a very good way.

That's all from me, and then I'd like to open up for any questions. Thank you.

Good morning. It's Carl here from Nordea.

A couple of questions from my side. Firstly, looking at the other operating income and expenses in the quarter, 60 million, that is seemingly the highest level in ever, I think.

What is behind that, you'd say?

Hello, Carl. Good morning.

Yes, you're right. We have not had that situation before, and we can be transparent.

This comes from a fire in one of our subsidiaries that we had some time ago where we had had extra costs, obviously, relating to moving the company and setting the production up. With that, we have taken part of the insurance money that we received and put that as an operating income.

Extra other operating income.

If you take

for the full year '25, this has not been any positive effect. On the contrary, we've been a bit conservative in our bookings.

This is not material on the group. Do

you expect more to come?

There could be slight more coming in as we took a conservative approach around the full clearance of the insurance claim.

Okay. That is very clear.

The majority is '25 '25 issue, yes.

Then it's Q1 if anything, or?

Difficult to say. The way to look at this, if you want to be very detail-oriented around this topic, is that, as you can say, part of the problems we had in our profit in this company was partly offset by this other operating income.

Okay. That is very clear.

On Demolition, you touched a little bit upon the mix and the margin in the quarter. Surprised me a little bit, at least.

Obviously, we've seen volatility before. Is it solely the mix you're referring to as less special machinery sold, or is it any other mixes?

Also on that note, have you seen anything related to pricing that could also be one effect on the margin side? No,

it's relating to the mix. When we sell more super niche machinery products, we obviously have slightly higher margin compared to some of the other parts of this.

You can basically draw the conclusion that we had slightly higher part of that in Q3 and slightly lower in Q4. The margin, if you look at individual entities, we are strong in pricing.

It's not that that's the effect here.

On the mix side, is it a mix you see in the quarter that could be sustainable over more quarters ahead, or is it more of a temporary, as we've seen before, Lifco selling a few less machinery of a certain niche?

I think if you look at the full-year numbers, we're increasing our margins. If you look at Q3, we had very strong margins compared to previous year, and now we have a little bit the opposite effect in Q4.

I think it's way too early to draw any major conclusion around this. I think we've seen this If you go back over the last 10 years, we have this 1 percentage point margin difference between quarters, I would say, quite normal in this area.

It's on a high level, and we have to look at a little bit longer time periods here to draw more conclusions. The main message for this area is that we saw some comeback in 2025.

We're not on booming levels. It's not a heydays that we're seeing at all, but it's coming back from quite depressed situation in '24.

For sure.

Okay. Very clear.

The final one, if I may, is on Contract Manufacturing. Sorry for bringing that up.

I know that you're not super willing to talk too deep by subsidiary or subsegments, but entering Q1, I think comps will be even tougher to some extent, should we see that you keep this level flat year-over-year? Should we see that also coming up in Q1 here as well or how should we look at the volatility we've seen historically and also how you manage your procurement with the, I guess, budgets you have for that segment in order to minimize the risk of over- or procuring too little?

We've talked about this a few times in the last 15 months here, and we had sort of a hiccup in Q2. In Q3, Q4, we've seen a more stable development.

That's where we stand right now, and that's what we can see right now. Based on that, it looks stable, but as it's changed quite quickly during Q2, we had temporary slower development in Q2.

All we can see now is that it's quite stable. Then when it comes to the material, I think we have, based on what happened in Q2, we have stepped up in many of our operations in being prepared for this.

Of course, if demand change very quickly, it will have a short-term impact on maybe cash flow and that situation. We manage that quite well.

If you look at how we end up '25, we know we have a very strong cash flow also in this part of the operations.

As you view 2026 right now, do you see quite flattish sequential development of this business, or is it cyclicality we should consider entering '26 in this quarterly?

Okay. If you take the first quarter in '25, we had very strong development last year.

We also had now quite strong development in doing the fall, and we're matching our Q4 for '24 numbers quite well. I think that's the best estimate.

I can't give you any better estimate than than following the trend that we're seeing right now. The visibility is maybe in theory quite longer, but in reality we saw in Q2 that we have to be very careful in predicting too far ahead in this area.

Right now, we see stability. That's the best guess.

That's very clear. Thank you.

Yes. Thank you.

Thank you. Good morning.

On Dental there, anything worth highlighting in terms of similar question really on the other segments in terms of mix or anything like that on the margin then?

No, I think, in general, in Dental, we have maybe to answer this question more long-term perspective, we have had now for a number of years an increasing trend where we are becoming more and more of a manufacturer, partly through acquisitions and partly also through the organic development of the companies we have. I think we saw that trend also in '25 where we had slightly more difficulty in our distribution companies.

They are becoming less and less important part of our profits in this area. I think that's also the trend we saw in '25.

As I mentioned, probably a year ago, hopefully, we are now reaching a point where the sort of transition of Lifco Dental group into a company with own products and own R&D and unique proprietary products is reaching a point where we can hopefully see some higher growth in coming years. It's too early to say whether that's in this year or it takes another year or so before we're at that point.

Then on the M&A side, the past, if I look at this correctly now, the past three years, the margin of acquired units has been even above 25% and in some cases even closer to 30%, I understand that is not on its own a focus area for you, but just how far can you go in terms of finding these very high-margin companies and thereby have a clearly still margin-accretive effect on the group?

We don't really look at it like that. Our target is not to get margin-accretive acquisition.

Our target is to get really good companies that we can own forever and that are super specialized and they suit the model of having independence within the Lifco Group in a very entrepreneurial and decentralized manner. We have learned over the last 20 years that companies with strong margins over many years and very specialized product offering is very suitable to gradually continue to develop within the Lifco system.

That's why we probably end up having a higher appetite for those types of companies. Having said that, whether the companies have a margin of 22% or 30%, yeah, that's difficult to predict what it will be in the coming years.

Because we can also accept companies with high margins and not super high margins. We tend to really feel more safe about the corporate culture and especially the position of the company when we've seen a long history of high margins, so that we don't only see great products, we also see great execution.

We will see. It's my normal answer to this.

We cannot promise that they will always be accretive, and I think that's not so important. The important thing is how we increase our free cash flow per share in a very good way.

High-margin companies is one way of doing that.

Sure. My final one is just on the growth excluding currency and acquisitions inside Systems.

Without giving any direct number, would it be fair to assume that that number was positive during the second half?

I don't have six months figures here in front of me, but I can say that it became better in the last quarter, the growth in Systems Solutions. As I always say, we don't celebrate victory.

You have to see some longer-term perspective. It felt a little bit better in the, yeah, in the second half, or maybe in this last quarter.

I don't have the specific six months figures in front of me right now, but the feeling we have, and I'm sure about the fourth quarter, it was a better. It was a difficult year in '25, but at least if anything, it's better to have a little bit better feeling in Q4, but it's a little bit too early to celebrate victory that the markets are coming back across the line.

Yeah. Always nice to be optimistic ahead of a full year.

That's all from my side. Thanks.

Yep. Thank you.

Hi, good morning, Per. Thanks for taking my question.

Maybe just two. On the others, do you mind sort of going into the other segments in Systems Solutions, what you're seeing there and maybe margin outlook on the other segments other than Contract Manufacturing?

Excuse me, the line wasn't very very good for me there. Could you please repeat that question?

Sorry, I couldn't hear.

Could you hear me?

Yes, the line is not perfect, please speak slowly so I can follow you. Thanks.

Okay. I was just wondering, do you mind going into a bit of detail on the other businesses in Systems Solutions other than Contract Manufacturing in terms of trends you're seeing there and then maybe margin outlook and margin contribution from those businesses?

We don't communicate margins on these divisional levels, but I can give you a little bit of a flavor how last year was overall. As I mentioned, we saw the strongest development obviously in Contract Manufacturing, which we've discussed in previous calls.

Then we had a stable development in Environmental Products overall. Then in Infrastructure Products, we saw, as I mentioned in the call here, we saw throughout the year a slight improvement from a relatively tough '24.

That is a little bit the same trend that you can see in Demolition & Tools area, '24 was a very difficult year for many construction- and infrastructure-exposed companies, and '25 then was a slightly better. Then if you look at the more difficult areas, which was in Transportation Products and Special Products.

There in Transportation Products, we saw a slight improvement actually from the weak situation we had throughout the year in Q4, whereas in Special Products, we still see some weaker market conditions for some companies also in Q4. That's basically the summary of the trend in those areas.

Okay. No, that's very clear.

Just on margins, I think, sort of Q3, Q2, you kind of talked that sort of costs were maybe a bit too high in some business areas due to growth investments. When thinking of margins in Q4, was sort of any margin improvement driven by sort of some of those costs coming out, and so when we look at margins going forward, is there still scope to boost margins by sort of taking costs out as well?

Sorry, the line is not great. Can you please repeat that again?

You referred to something in Q2, Q3 which I couldn't really hear, so.

Apologies. It's maybe just thinking of margins and cost-out.

You talked about costs were maybe a bit too high in certain parts of the business in H1. Is there still scope to take those costs out in H1 this year, or that was largely done in H2 last year?

If you look at our cost reductions in Lifco, basically, all our portfolio companies, they act when they see a change in market demand. In '24, the majority of our cost reduction, of course, took place in the Demolition & Tools area where we had the very weak market situation.

They are now improving in '25. Then in Systems Solutions, obviously, we have companies then addressing the weaker market conditions throughout 2025, especially then in Transportation and Special Products.

Having said that, some companies have very high margins and very little fixed costs, they can do only so much to compensate in this. Others have, of course, more opportunity where you can say, in general, the lower the margin, the more you have to address and more things you can do to fix it.

In Lifco, we are built on a culture where we have very action-oriented managers, and we continuously work very hard on the management level in Lifco to ensure that we have that in all our companies. They do a really good job in addressing the market situations locally.

That happens immediately. It's not a centralized steering project around this.

I think can also highlight that I'm very happy about how different managers are executing this in Lifco way. It's not like we sit here with a plan and now Lifco will do this and that.

Instead, we see continuous things happening in our portfolio companies.

Okay. Great.

Thanks very much for taking my questions.

Thank you.

Hello, and good morning, Per, and thank you for taking my question. Just a short one on the demand side.

If you can help us to get some more understanding of where you see demand picking up. As you spoke about, how do you see that in the different geographies, North America versus Europe and the rest of the world, if you can help us, and especially maybe on the Demolition & Tools part and the infrastructure parts?

I think in Demolition & Tools, we've had now, of course, we are quite In all our areas, quite exposed to Europe. Demolition & Tools, of course, a more global exposure than the others.

In 2024, it was especially difficult, I think, in Europe. In '25 US, North America was holding up a bit better in '24.

'25, we we have a mixed picture when it comes to North America. We have some some areas holding up quite well despite tariffs and and the situation there, whereas others have seen more more situation.

We haven't really understood, why this is is is. It's still possible to grow in in North America in '25 for some companies, but but not so clear.

In Europe, we saw a slight improvement in '25. I think one of the more difficult markets, maybe not so much related to Demolition & Tools, but in general, was UK during 2025.

I can only go, historical when I give I don't give any predictions about how the market will go going forward. It's been pretty much, yeah, pretty similar for us in around Europe.

Okay. Perfect.

Thank you.

Thank you.

Okay. Thank you very much for listening and thank you for the questions, and I wish everyone a nice Friday.

Thank you.