Welcome to Röko's earnings call for the third quarter. The good pace on acquisitions since end of last year continued in the third quarter and attributing to the year-to-date growth in adjusted EBITA of 30% together with organic growth.

Note that the net debt to EBITDA ratio has increased 0.5 times to 2.6. The leverage metric is impacted by the pace of acquisitions that are phased into the EBITDA metric, and since the end of September last year we have completed six acquisitions.

In the third quarter of 2026, net sales increased 44% and adjusted EBITA increased 57%. The growth was predominantly driven by acquisitions, as we have completed six acquisitions since September last year, and organic growth of 9%.

In addition, we had positive exchange rate differences in the quarter. The global demand driven by AI and data center investments have resulted in a supply shortage of memory, which benefits one of our companies, E2B Technologies.

The company's development has increased throughout the year and the growth was very strong in Q3. E2B accounted for 6 percentage points of the organic growth in the quarter, and the other companies grew organically with around 3%.

I can add that some companies in the group experience challenges relating to the memory supply shortage, but the effects are not material enough to report. The political issues impacting the group performance in 2025 were introduced in the second quarter, and hence the effect was also impacting the comparison figures for the third quarter last year.

We still experience some market uncertainty for companies selling large systems and installations in the US market. Apart from this and a continued weak construction market in UK, there are no specific market phenomena that are relevant, but rather company-specific factors that determine the performance.

Several of our companies are handling the situation well and are improving their margins both in the quarter and nine-month period. For the year-to-date period, the reported margin was flat, but underlying margin increased for the comparable companies, both like-for-like and with a positive mix, however offset by recent acquisitions that have a below-average EBITA margin.

For the nine-month period, net sales increased 27% and EBITA 30%, and organic net sales growth was 6%. In the year-to-date period, it was partly offset by negative exchange rate differences of 2% relating predominantly to the first quarter.

Free cash flow after capex can be a bit volatile in the quarters in our group, but for the nine-month period it increased with 34% as a result of margin improvement in comparable companies. Despite organic growth of 6%, the working capital development has been controlled.

Note that last year we had costs for the IPO that impacted cash flow negatively with 41 million Swedish in the nine-month period. Looking back at some of the recent quarterly reports, I have mentioned an improved market for acquisitions, and in the nine-month period we have acquired five companies across a variety of industries.

The companies have market-leading positions in their respective niche markets. The acquisitions have a combined annual turnover of more than 1.5 billion Swedish, adding approximately 24% growth in net sales for the group on an annual basis.

The timing of acquisitions is not a straight line, as and the activity in the first nine months of this year is a result of improved markets and diligent work by the team at Röko, where several of the companies have been known to us for many years. The team is very dedicated and is working hard to source and assess acquisitions, and I think the pipeline continues to be at a better level than in previous years.

Turning to page 4, growth in EBITA was, as mentioned, 30% in the first nine months. It says 20 on the page here given that we show the LTM number.

If we look at the CAGR since the end of 2023, adjusted EBITA has increased with 17% per annum, despite negative FX of -2%. The net debt to EBITDA ratio increased, as mentioned, to 2.6 times, explained by the acquisitions and net investments for this totaling 2 billion Swedish so far this year.

While the reported net debt to EBITDA is now 2.6 times, it's important to highlight that the phasing of acquisitions will have a deleveraging effect, all else equal, and also that we are comfortable up to three times leverage over the longer term. Can also mention that the leverage split is becoming a bit more balanced as net interest-bearing debt increases and put/call liability decrease, all else equal.

We have a modest leverage in relation to the covenants in our bank agreements, approximately 60% of the covenant threshold. Over the long term, I think it's clear on this page that we have shown organic growth for most of the years, despite 2023, with improved margins across the board and also improved return on capital employed, as you will see.

We focus on acquiring companies with good market positions in their niche markets and with evidence in the financial performance through solid EBITA margins and good cash conversion. The pace of M&A has been good in the first nine months of this year, resulting in increased net debt to EBITDA, which is expected as acquisitions have a direct impact on the balance sheet, but not on the P&L.

Despite this, I think it's very good to highlight that the return on capital employed has improved with one percentage points, one percentage point during the year-to-date period compared to the same period last year. Return on capital employed increases over time, driven by organic growth in the companies, amortizations of intangibles, and by being disciplined on acquisitions.

Turning then to page 6, our free cash flow increased in the quarter and cash conversion was in line with last year or even a little bit better, but remember that we had IPO-related costs in 2025. We're always working with our management teams to improve cash flows, and currently we monitor potential extensions in delivery times closely.

Return on capital employed increased, as mentioned, to 15.5%, driven by profit increases in the comparable companies, however partly offset by recent acquisitions. The ratio can fluctuate a little bit due to the timing of acquisitions, but we aim to increase it over time through organic developments and disciplined acquisitions, as mentioned.

I urge to look at the development over longer time. The return on capital employed, excluding intangibles, remain at a high level, evidencing the asset-light group of companies.

It declined a bit due to some of the recent acquisitions having been companies with more in-house production and hence a little bit more asset-heavy businesses. Acquisitions in line with our investment criteria and disciplined valuations are attractive for us, and we don't pass on them even if they have a negative impact on return on capital employed in the short term.

Röko is a group of niche companies that predominantly grow through acquisitions. Since 2019, we have completed more than 40 acquisitions and five so far this year.

We're sector agnostic, but strict in our criteria, and therefore the timing of acquisitions is not linear, but we have now managed to acquire approximately five companies per year on average and added high quality niche companies to the group at an average EBITA multiple below eight times. I can say quick on the five acquisitions this year that we believe they all have strong market positions in their respective niche markets and financial performance that evidence that.

With that, I will hand back to [Vena?] , who will moderate the Q&A session if there are any questions.

We ask that you please ask your questions verbally. Thank you all for listening in.

Hi, congrats on a great quarter. I was wondering a bit, given the strong growth for the quarter and 6 percentage points from E2B, how should one interpret this and what is a sustainable growth rate, and what should we expect regarding this?

Thanks.

Thank you, Alex. What I can comment in relation to E2B is I guess the AI development is no news to anyone on this call.

Many of us experience the benefits from various models daily, and the investments to support the technological development are vast. Several of the best performing companies I guess on a global basis in recent years are companies that supply various products for the AI infrastructure.

E2B is well placed. They're doing a great job, and we are just happy with the development.

There's no possibility for us to say how long this will continue at this level, but I think what is important to also bear in mind is that the group, apart from E2B, is also growing organically.

Thank you.

Thank you all for listening in. Have a great day.