Hi, and welcome to DNB Carnegie and our Q1 conference call with Terranor. My name is Markus Sandberg.

I'm an analyst here at the bank. I have with me Michael Berglin and Inka Kontturi, who is CEO and CFO at Terranor.

A warm welcome.

Thank you.

Thank you.

I will leave the word to you, and then I'll come back at the end with the Q&A. Take it away.

Thank you, Markus. Thank you, everybody, who is listening in to this Terranor Q1 presentation.

With me, I have Inka, our CFO, and she and I will be doing this presentation together. Kicking it off, the quarter at a glance.

A lot of numbers and wording in this slide. I would start by saying three things about this quarter that I think is significant, that I want to come back to as we proceed with the presentation.

Yes, continuous growth. Business model and the operations are continuing to grow.

It's partly driven because we have had winter activities. Yes, there has been winter in the Nordics.

Terranor like winter. What's more important is also that we have proven that the operational model is robust, resilient.

We can handle winter climate. Good activity, high activity, but also, in my point of view, strong profitability that underlines that the operational model is functioning.

Continuous growth and strong profitability. Third, I would say, competitiveness.

Coming out of the tender season the way Terranor has done, working with state contracts, we have tender seasons in both Sweden and Finland that is exactly in the first quarter. To us, I am very proud of what our colleagues and Terranor has done in the tender season.

I think that we have proven the ability to outcompete. Of course, in a price competition, one could say it's about, yeah, putting in the cheapest price.

As Markus so adequately pointed out in his analyse, Terranor has also been very consistent in this tender season. We've been able to win, in our opinion, strong contracts that are strategically good fit towards our current operations, but also with a good price point that allows for continuous improvements, both growth-wise and profitability-wise.

Just summing everything up, and again, we will be coming back to these, these are the three pillars of this quarter one: continuous growth, proven the operational model also functioning in the winter season, strong profitability being a quarter one, and of course, tender season being a success both in Sweden, but also in Finland winning two contracts. That in a nutshell, I would say.

We need to stop for a second. We always have this picture about the market.

What I would like to say is that in April—I understand April is not first quarter, but nevertheless—government in Sweden presented the plan running up until 2036 on how investments are thought upon from the state perspective. We talked about it before, and I just want to remind everybody that, yes, there is a deficit in spending that is historical.

Now, we clearly see that funds, investments are coming in to mend that. How this in detail will affect Terranor, too early to say.

We can only say that for us, being one of the largest road operations and maintenance providers in Sweden and also being the clear growing company in gaining market shares, the additional spending will benefit our business model going forward. Looking at the markets in Denmark, I would say also high activities.

We are tendering more municipalities now. We also see more spending in the infrastructure.

Lately, there has been a lot of press about spectacular tunnels underwater, but it's not only that in Denmark. Throughout the board, we see a lot of investments, and that also affects our general business in Denmark.

We are still bullish about the market that we are operating in, and we always like to remind that the services that we do, the good for society, keeping roads open, will be needed more or less regardless of macro. Good situation going ahead from the market perspective.

Seasonality, well, Inka, I will leave this one to you, and I will come back and help you a little bit with it. Of course, quarter one is a winter quarter.

Yeah. Yes.

Thank you, Michael. Yes, our operations, they follow a clear seasonal pattern.

The operations spans usually over five quarters, and our pricing method differs from winter to summer season. During the winter season, we are tend to have more on a fixed pricing, and when we use the fixed pricing, we mitigate the risk, but also there is a less opportunities to affect the margins.

During the summer season, which is the second and the third quarter, usually we see more on a variable pricing. We can see the extra works increasing, and therefore there is also a better opportunities with the margins.

Start of the third quarter is usually a little bit of the slower here in the Nordics because of the holiday season, and towards the year-end, we close all the extra works for the maintenance year. The key message here is that when you see our first-quarter adjusted EBITDA margin at 2.2%, that's entirely aligned with the seasonal pattern.

It's not a running rate for the full year. Our medium-term target of about 5% should be assessed on a full-year basis, not only on a first quarter.

Thank you, and very correct. I will come back and I will brush up on country by country, because there are varieties.

Again, what I said before, I think that a quarter one, like Inka stated out, we always said that if you think about it, the extra money that is coming in to handle the deficit, of course, all of that work can only be done in the summertime. We will continuously see Terranor's business increasing over the year.

That is how it's set up. However, having a quarter one with high activities and proving that we uphold the margins even so is strong.

It's a strong signal that I want everybody to take with. Yes, solid growth, Inka.

Solid growth, yes, we have another growth quarter. Revenue, we had on 905 million kronor, and this is 23% of the growth from the comparable quarter.

This is well above our medium-term target of 8%. The growth is driven by the Sweden, like Michael said, good winter activities, good volumes, and then we started also the new contracts in last fall.

The good volumes which we started in fourth quarter for the whole winter season, those continued in the first quarter. Also, we had a strong order intake on 1.1 million SEK.

This reflects, of course, our successful tender season in Sweden. The strong order intake drives our backlog to 6.3 million a billion, and this is the all-time high, and that will provide a solid platform for the coming years.

The key message is here that we are growing materially faster than the market. The 23% growth is not only weather driven.

Our market share is growing, there is higher activity level, and we can see our clients investing more on the roads.

Thank you. Underlying earnings, like I said, I will talk about earnings because I think I will do it in the country page,

but

overall, Inka, perhaps a word?

Overall, our adjusted EBITDA on a 19.8 million kronor, this is up 62% to the comparable quarter. Adjusted EBITDA margin 2.2%, which is up half of the percent from the last year's first quarter.

Drivers again: strong performance in road operations and maintenance in Sweden, also improved results from the other segments compared last year's first quarter. Also we kept our fixed costs under control.

The first quarter margin at 2.2% is in line with the seasonal pattern, where the winter activities, they carry structurally more lower margins than in summer. Our medium-term target stays above 5%.

Yeah. Cash, obviously what you talked about earlier, Inka, that we have the fixed payment plans for the winter season, and that is also what we see affecting.

Of course, sometimes you have spillover effects between Q4 and Q1. Please, your comments.

Yes, we are on a negative side what it comes to the cash flow the first quarter. This is just the effect of the timing of the invoicing.

Looking at the fourth quarter in 2024, we can see that there was a spillover effect to the first quarter. This year, or actually the last year in the fourth quarter, we were on time with our invoicing, and there was no spillover effect to the first quarter.

When we are looking at the both quarters together, the first and the fourth quarter, then there we are in line with the expectations. Looking at the historical data, we can see that the second quarter always tends to drop a little bit.

This is because we are going into the summer season and then the timing of the invoicing will change. During the summer season, we are going to invoice our jobs always when they are completed.

Of course, we will focus on the cash management going forward.

We always do. Perhaps prudent to remind, but of course, over a four-quarter cycle, that is always how you need to assess our line of business since we have the seasonal differences.

Let me take a stab and try and break down, country by country, what is building up the quarter results for this year. Starting with Sweden, we see a margin of 3.7%, which is neck-to-neck with the Q1 margin from last year.

I think, coming back to what I said earlier, that this year we had winter, and of course, Terranor's business model operates under the assumption that there are winter activities. We welcome winter activities.

I think that our colleagues, the entire operations has proven in Sweden this year that we have the ability to handle winter activities. I think I do want to say also that I think the collaboration with our largest client, Trafikverket in Sweden, has been really good.

The discussions we have when we look back on the season has been a win-win situation. The public running on Swedish roads have experienced less disturbances this year.

I think the collaboration model between us and Trafikverket also is functioning. At the end of the line, every day this comes down to our colleagues doing a very good and a very professional service on the road.

So 3.7% in a winter quarter, I don't want to be too optimistic, but of course, going into the second and third and fourth quarter, we are feeling very comfortable about the situation in Sweden. Finland, we have a backlog that is back-heavy.

We have a lot of contracts in the backlog that are taken in the years '22 and '23. We've been outspoken, saying that the margins in these contracts are challenging.

The thing when working with long contracts is that it takes time to change the dynamics of the backlog. Yes, margins are on the lower level.

We are doing a lot of things to strengthen the operations. I am acting country manager now, I feel also that I'm operationally involved.

The contracts from '22 and '23, we have directed valid claims. I think in other markets that we operate in, this has been sought amicably, between the parties.

Of course, that is our outlook even for the Finnish relationship. We won two new contracts signaling that we are in Finland to stay in Finland.

We will continue doing this. Finland is a important market for us.

We need also to have a win-win or a friendly or amicable solution and a long-term relationship with the largest client. No resolution has been made for the claims this quarter, but as I say, we are very optimistic in finding a way forward.

Looking at Denmark, I think it's important to understand that our operations in Denmark is by far a summer business, meaning that we do a lot of summer activities in the state contracts. In Denmark, you separate winter activities from summer activities in the contracts.

Terranor currently holds 80% of the summer contracts, and I would say we do have some winter contracts as well, but it's, I would say, 10% or so. In the first quarter that is affected by winter, they had snow in Denmark.

It is rare, but it happens. January, February, a lot of the summer activities that we usually do in the contracts, we couldn't.

What we did is service, repairs, maintenance, and that is usually what we use the January, February months to do. I would say that, of course, the EBITDA margin and the profitability is on the low side, but it's also what is expected for a company that is running summer activities.

This is not something that completely shakes things off. We will see activities picking up in the second quarter, third quarter simply because that is how the contracts operate.

Coming back to the financial targets, just checking where we are, and I would say, of course, revenue growth of 23%, it is high. I will not say that this level is something that we are aiming to keep.

You remember we have a target of 8%. We have hinted that we believe that Sweden will be able to grow faster than 8%, but on the other hand, looking at 8%, it's a group-wide number.

Of course, Finland and Denmark, perhaps not the same ability to grow as Sweden. Again, Sweden is the big driver here.

It's a combination of doing more in the existing contracts, because that is what Terranor wants to do. We are a yes-we-can-do operator.

It's also driven from the fact that we are continuously year-by-year picking up more contracts, a strong tender process in the bottom. Profitability, of course, 3%, 2.2% is not 5%.

If you split the markets, and we talk a lot about Sweden, but Sweden being on 3.7% and with outlook we have for the Swedish market going forward, I think that these numbers are strong. We are not there yet, we are not all by happy with the numbers, but we are trending in the right way to reach 5%.

Dividend, we have an AGM coming up, and hopefully, the AGM will vote in line with the board recommendation, and we will pay out the first dividend. That is what investors should assume from our company, being operationally strong in cash flow and also providing a solid result, and not seeing really a big investment opportunity, of course, we should be paying dividends back.

Leverage-wise, we are a little bit up from quarter four, but this is leasing. This is the equipment that we are using in the contracts.

In a quarter where also you see revenues growing, you will also see leasing growing. Of course, this is towards adjusted EBITDA, over a year, I would be surprised if this continues going up since we are expecting EBITDA also to pick up.

We feel comfortable with the leverage situation. Rounding it up, Inka, you will need to help me out here, but I will come back to where I started, and I would say that Terranor being a specialized operator in road operations and maintenance, I think we have proven that the specialization is the right way to go, because we are increasing professionality and the operational quality that we are putting on the road.

I do not think that a company that is everywhere had been able to combine growth with profitability and the cash flows. At least, I know I'm biased, but to me, that is important, and that is where Terranor will stay, being a high-quality provider.

I would say the market outlook, we see investment increasing in both Denmark, but definitely in Sweden. I think that we are very well positioned to tap into a lot of the investment going forward.

I feel a drive and an entrepreneurial drive in the company that is very forward leaning, and I feel a lot of good momentum in the company. Inka, anything I missed out on?

Yeah. No, you're totally correct there, and what it comes to the specialization, it goes all the way to the support functions.

We have the controlling in place, HR is supporting, everybody is towards the road maintenance and operations, and that is also the key factor for the success, I would say. Good.

Because

that also gives a need for me to underline that from owners through board, as a CEO, I feel great support from having the entire operations from board all the way out to the roads being focused on doing this. Lastly, a word about the client.

I do believe that the client relationship in at least Denmark and Sweden, we believe Finland will pick up since we're under discussions, but we would not be able to do this if we didn't have a good relationships. Again, what we've seen in the first quarter, no disturbances on Swedish roads, it's a joint collaboration between us and the largest client.

I will leave you with that. I think this is a strong quarter.

We are very happy with the trend where we're going. We're not all there yet by the numbers.

We have challenges, but all in all, I think this is a strong quarter.

All right. Maybe we'll drill in some of these factors, maybe starting with the growth.

29% growth, which is obviously very strong, 37% in Sweden. Can you talk a little bit, there is two factors here.

There is the winter, which is generally strong revenue-wise, and you had new contracts. Can you talk a little bit about the distribution of these in terms of drivers?

What is what?

I can start off, and Inka will help me out. I do not have down on the decimal, but I would say it's a 50/50 split, because we see significantly higher activities.

This is not simply in this quarter. We've been talking about it before, we've seen it happening, always starting '24 going into '25, the trend continues.

For me, it comes back to the mentality or the idea of being a provider of services, like I said earlier, yes-we-can-do mentality. When we tender, we tender in a manner that we can absorb whatever services our clients need.

I think that is also very strong for us, and it pays off in activities, and it also brings culture and entrepreneurial drive to the company that never should be downplayed. I think that is very strong.

You come to Terranor because you want to be in this line of business, and you want to do good for the roads. Mhm.

Secondly, of course, the tender process. We invested in a central tender department, and now I've been able to first-hand witness how this operates for two tender seasons.

I strongly believe that the combination of using the local know-how, and again, I look around in the company, I see experience, I see competence, combining that local expertise with the central department and all of the data figures that we have, since everything is publicly known, we know a lot about where the contracts have been before and so on. That combination, being consistent and being the only company that actually tenders on all contracts in Sweden—nobody else does that—so we have a clear strategy going in.

Sometimes you win contracts that perhaps was not the premiere that you went in for, but to offset and to be a part in this market that want to do contracts, I think that is what we have proven in this tender season, or actually over a couple of tender seasons now. I feel confident going forward.

Looking at this tendering season in particular, you're happy with it and you express that in the presentation. Is it in line with your expectation, better than expectations?

Oh, you're never happy. It was nerve-wrecking and heartbreaking at the same time.

If you would have followed, like I know Markus has followed it very thoroughly, we had five near misses. Near misses in our line of business is when the deviation is less than 2%, we were within 2% of the price to the winner.

Of course, it could have been even better. It's about finding the right pace where also the company can absorb, ramp up these contract, mobilize them in a way that also supports the long-time trend of reaching 5% and being stable on a 5% EBITDA level.

Yes, in that sense, we are very happy with the outcome.

You do have a strategy which you're also expressing in the report where you want to focus on high traffic areas where you have major transport corridors. Were you successful in this, you think, in this tendering season or

Short, yes. Uh-huh.

Then again, there were some contracts that we lost I, personally, would have wanted to keep them because we have strong organizations. Then again, that's the discipline for you.

If somebody undertenders you in a contract, regardless of how good your operations and your colleagues and you're attached to them, the wrong price means you cannot be there. The discipline of it also means changing contracts.

Looking at where we are positioned now in Sweden, we're talking about urban contracts, high-activity contracts, stronghold in Stockholm, stronghold in Gothenburg, now also in Malmö. Yes, following the large roads, and especially the highways where you have a lot of activity, that has proven to be good for us.

It also means a good ability to move into adjacent municipalities. I think the strategy has paid out well.

Then again, I don't want to be totally cold about it, because some of the contracts I actually would have want to keep, naturally. Then

maybe finally before moving on to next there, to Finland, about Norvia in particular, what's the latest there? Is the restructuring done, etc.?

No, I wouldn't say that the restructuring is done. Finland is a turnaround case.

We need to do parallel things. Of course, we need to change the dynamics of the order book.

Now, it's a little bit back tilted, meaning we have more contracts that were taken earlier. All that reflects that we have been hesitant.

Like I said, we tender everything in Sweden, we do not tender everything on the state side in Finland. Our backlog also reflects that position of ours.

That is one thing that needs to change. We need to get more new contracts into the system.

Winning two state contracts contributes, of course, this year. We also see good momentum on the municipality side, I think that will happen.

Secondly, operational-wise, that is what we can affect, and we are affecting it on a day-by-day operations. Supporting processes, supporting what we actually can do in the contracts, that is happening.

Thirdly, I'm not saying that we don't have a good relationship with the client, but we need to have a collaboration seeing the win-win situation here also from the client. That is why we have presented what we see as very valid, very just and fair claims.

There were unforeseen incidents in the old contracts. We think definitely it's fair that we also receive higher compensation.

It's not yet resolved. We understand that these are complicated, complex matters.

It will take time. Coming back to your question, is everything done and dusted in Finland?

No, it's not. On these three pillars or activities, we see progress.

We are optimistic, but it will not go away in one quarter. We will not see Finland contributing on 5% EBITDA margin in this year, not even next year.

A turnaround in Finland will take longer.

Before we come back to Finland, because we will come back to Finland, just Norvia, is Norvia restructuring done and is any contribution positive, negative from Norvia in the quarter?

I would say operationally, more or less all done. What we do have is a runoff, since we are downsizing the business.

The idea was to have a smaller business that we can run more efficiently. That is happening.

The runoff that we are still in is that we couldn't sell off the trucks in the pace that we were hoping. In the first quarter, yes, we have a spillover of adjusting the operations.

Trucks are being sold down, and also personnel is downsized. That is spillover into quarter one.

Has the effect been material on the operations? No, I wouldn't say.

Norvia is inside the segment Sweden, Sweden is producing 3.7%, I think you have the proof there.

On Finland, the first question on Finland, it's a question from audience as well, is on pricing between the municipal and state contracts. Is it kind of the same pricing mechanism?

Is it profitability-wise the same, or do they differ?

It varies. I would say that the municipalities is more fractured.

You would see some municipalities with high prices, in some municipalities because the thresholds of entering into the municipality market is lower. Generally, you would see more competitors, every now and then, you would see a local competitor coming in on very low prices.

In general, we feel that we are competitive, and we focus a lot on the municipalities. We have really strong examples in the municipalities that we are currently running: one municipality in the Helsinki area, another one in the middle area of Finland that are delivering strong, solid margins.

State-wise, looking at the tender season, it's easy for me to compare the tender season in Sweden and Finland because it's the same time of the year. I would say that overall, price increase is not on the level in Finland as we see in Sweden.

Prices are rather on the conservative or on the low side, and that is also why we are very selective in what we are bidding. I think the two contracts that we won, Kemi and Ii, We felt secure that we can provide these services and to these prices.

To your question, I think overall in Finland, it's a tough market situation. I know that they are coming out of a economically tough period, '23, '24, but it hasn't turned around, if you ask me, for Finland as a whole.

About the price ceilings in Finland, because you do have the issue with the price ceilings, and we know that there are at least two contracts which are above the price ceilings. You also give a figure here about performance guarantees.

You have some performance guarantees of 48 million which is referring to Finland. Can you explain a little bit about these, what's happening with the price ceilings, and then how do these performance guarantees work?

Of course. Starting with roof price and the target price.

In all contracts, yes, there is a roof price and a target price, and whatever is in between is getting split between us and the client. That's the mechanisms.

The mechanism is also that, for instance, we cannot affect weather. Sometimes it will snow more, some years it will snow less.

Both the target and the roof, the entire structure is that these are moving items depending on how activities are within the contracts and also other circumstances. Like we point out, if something totally unforeseen happens, we strongly believe that this is something that would affect both the roof and the target price.

It's easy to think that if you have a roof price, it's fixed. It's not.

It's supposed to change for whatever happens in the contracts. This is an ongoing discussion with us and the client.

Just to say, this is not totally unusual. This is the same discussion that we also have in the Swedish contract, and we have it in Danish contracts.

This is the client and the contractor working together. Yes, this is what we ordered extra, or this activities went up, accordingly, we need to adjust the prices.

That is standard. It's about getting to a joint understanding on, year by year, where the correct level should be.

We have pointed out that when it comes to the old contracts, we feel that the client's opinion of where the roof price should be is on the lower side. We think it should be on the upper side.

That's a discussion that needs to be held. In our opinion, much better to have the discussion and come to an understanding before the contracts expire.

We simply just want to be active and prudent and say, "Hey, this is how we see it. This is the situation, we need to handle it."

I think that I'm a firm believer that both sides see the benefit of sorting this situation.

A couple of follow-ups. The first one is regarding the timing of the legal process that you're in.

Is it possible to give any indication on when you think you will have seen an outcome of these negotiations?

I think it's very important to be careful about the wording here. I understand why you say legal process.

To me, this is not a legal process. Yes, we have sought legal guidance times two from very reputable, highly reputable Finnish law firms.

I have 30 years in construction business. These discussions is what you have on not on a day-to-day basis because perhaps this one is a little bit larger, but you have these discussions.

Sometimes you seek legal guidance. That is what we have done.

There is no law process in the sense that we have decided that this is a dispute now. I know that the phrasing of it has led the mind to, yeah, there is this full-blown legal situation.

This is an ongoing discussion. We have directed claims.

Yes, we have legal advisors. Again, I think our claims are very fair, and I see that both sides see the win-win situation and this will be sorted.

When, however, I cannot answer. Clearly, it didn't happen in quarter one.

Do I believe it will happen in 2026? Yes, hopefully, for sure, because the contracts are expiring in 2027 and we do not want to move all the way there.

Yeah. The performance guarantees, the 48 million, and you're mentioning it refers to 19 contracts.

How does this work? The performance guarantees and then with regards to the 19 contracts.

Yeah. Again, this is for somebody that is perhaps outside of the business, performance guarantees is what you would see in all standard contracts throughout the Nordics.

I'm not that familiar with European, but definitely when you see standard contracts in the Nordic region, there is performance guarantee in place. It is in place to ensure the client that the contractor will provide under the obligations of the contract.

If there is a decided situation where the contractor doesn't fulfill its obligations and the client needs to replace the contractor, that is why you have the performance guarantees. Usually in my experience, you could see the performance guarantees being backed by bank guarantees, parent company guarantees.

What is predominantly most usual in the Nordic market is an insurance solutions like the ones we have. You basically buy an insurance that under specific circumstances, the beneficiary will be the client.

Allow me to be very, very clear here: nobody expects these performance guarantees to fall out, because first of all, Terranor needs to default on its obligations. It cannot only be the client thinking so.

It's not a demand. Client can never call upon these guarantees.

They are paid out under three very, very strict circumstances: one being Terranor saying, "Yes, you should pay out." Secondly, you should pay out because there is a court ruling that says Terranor has not done.

Under no circumstances can the client simply call for them. There has been questions, how are the group tied up internally?

Looking at the Danish business and Swedish and the Finnish, we've always considered them to be standalone units. That is how we set them up.

The only thing that are intragroup is how we secure the performance guarantees. In order for us to get the insurance performance guarantees, we secure them with the rest of the group.

What I need to be very, very, very clear about here is that it's a long, long, long road before any of these 48 million can be collected from anything outside Finland. The entire idea of how we set up the business was to run it on a standalone.

If Finland cannot stand on its own legs, Denmark cannot stand on its own legs, then perhaps we should rethink the business model and how we operate, rather than supporting from a different entity. That has been and is the general idea.

Maybe a couple of words on the margin before we wrap up. You saw the margin expanding 50 basis points, but still very, very strong growth.

You mentioned the winter season, that's one, and you also have some startup costs from new contracts. Is there anything else which is impacting the margin?

I think, no, that is the drivers. I would say the ability for Sweden to do more activities and also, coming back, I mentioned the client, sometimes I do not this quarter, I definitely feel I need to because it has contributed.

Having a client that sees the benefit of safe roads, even when it's high winter outside, that has contributed. Of course, our relationship and the ability we have to absorb whatever services needs to be done.

We have some minor adjustments post, but rather none. I would say the big driver for the margin is the solid operations in the countries.

Then again, I would have hoped that Denmark, with the four new contracts, would have provided better. It's tough to do sweeping and collecting gravel when there's snow on the ground.

I totally understand that. I feel confident that Denmark will pick up.

We have some questions from the audience as well about the diesel prices, fuel prices, which came up a lot in March and then also have continued in Q2. What is the impact and how does it work?

Short answer: we are resilient in the short- to mid-term perspective. If prices would prevail on a very high level, then we would need to reassess.

That is not what we are seeing right now. How can I say this?

I can say this because we have indexation in more or less all contracts. We have indexation towards the client to protect our revenue.

We have at least the same back-to-back situation or better with subcontractors. In a situation where prices go heavily up, I need to be careful here to say I don't want to come off as saying we have the same indexation in all contracts because it varies.

When we do the sensitivity analysis, we do it group wide. Then we feel that if this situation that we see now, we are protected at least for the 2026 time frame.

There are levels within the Swedish contracts that if prices would remain on a very, very high level for years, well, then we need to reassess. Then again, it's not only Terranor that has a situation, then the entire society has a situation.

Coming back to relationship with the client, what we've seen before when the pandemic was, at least in Sweden and Denmark, we have seen clear evidence that we come together as a society and we help each other. Of course, it's disturbing.

We monitor this on a more or less day-to-day basis. Today, I'm not concerned about the profitability for Terranor this year.

Then

finally, maybe tendering season in Sweden, big moment is behind you. What's next?

Oh, more tendering.

More tendering?

Yes. No, but that was, of course, the first response.

The thing is, now let me rephrase it, let me say like this: with more footprint throughout Sweden and Denmark, we have now a better and better ability to also tender the adjacent market. Yes, I do see, because I look at my calendar, and I'm in more tender meetings now at this time of the year than I was last year.

We are moving into a wider market. Not doing anything else but road operations and maintenance—that is the core—but we are tendering more.

I would say that on top of my mind, and of course, continuously doing the good operations, the strong operations. That is why we are having the numbers and the trajectory we are on right now.

There is no way around it. We need to do the work on the road on a day-to-day basis.

Thirdly, I would say mobilization of the new contracts. That is also something that I'm in meetings frequently.

They are starting in Sweden 1st of September. I think so far, it looks good.

We have a solid track record, '24 and '25, showing the ability to ramp these contracts up. More tendering, focusing on the operations, focusing on the mobilization, and of course, an eye on the oil prices, and needless to say, having a very strong focus on Finland as well doing the turnaround.

Michael, Inka, time is more than up. Thank you very much for coming here to talk to us, and thank you for watching.

Thank you, Markus.

Thank you.