Q2 2026 Investment AB Latour Earnings Release

August 19, 2026

Speaker #2: Your line is muted.

Speaker #3: Call recording is on.

Speaker #4: Good morning, and welcome to the presentation of Investmentaktiebolaget Latour's interim report for the second quarter of 2026. The first part of the presentation will be in listen-only mode, and we will then open up for questions.

Katarina Rautenberg: Good morning, and welcome to the presentation of Investment AB Latour's interim report for Q2 2026. The first part of the presentation will be in listen-only mode, and we then open up for questions. To ask a question, dial star five on your telephone keypad or use the chat window. With that, I hand over to CEO Johan Hjertonsson and CFO Mikael Johnsson Albrektsson.

Speaker #4: To ask a question, dial *5 on your telephone keypad or use the chat window. And with that, I hand over to CEO Johan Hjertonsson and CFO Mikael Jonsson Albrektsson.

Speaker #5: Thank you very much, Katarina. Welcome. This is Johan Hjertonsson, and welcome to our presentation of the Q2 report. I'm here together with our CFO, Mikael Jonsson Albrektsson.

Johan Hjertonsson: Thank you very much, Katarina. Welcome. This is Johan Hjertonsson, and welcome to our presentation of the Q2 report. I am here together with our CFO, Mikael Johnsson Albrektsson. The presentation is divided into two sections. Firstly, we will walk you through the Latour Group's development in Q2, commenting on the development for the investment portfolio and the wholly owned operations. Then we open up for questions together with Mikael. Then we have a second part where we will make a deep dive into Nord-Lock Group, one of Latour's seven wholly owned operations. There we will invite Daniel Westberg, CEO of Nord-Lock Group, for this section. Finally, we will have a Q&A session all together with Daniel on the Nord-Lock Group presentation.

Speaker #5: The presentation is divided into two sections. Firstly, we will walk you through Latour Group's development in Q2, commenting on the development of the investment portfolio and the wholly owned operations.

Speaker #5: And then we open up for questions together with Mikael. After that, we have a second part where we will make a deep dive into Nord-Lock Group, which is one of Latour's seven wholly-owned operations.

Speaker #5: And there we will invite Daniel Vesper, CEO of Nord-Lock Group, for this section. And finally, we'll have a Q&A session all together with Daniel on the Nord-Lock Group presentation.

Speaker #5: So if we go to the first slide, I would say, in commenting overall, you know, solid second-quarter performance, supported by positive market developments, especially toward the end of the quarter.

Johan Hjertonsson: If we go to the first slide, I would say on commenting overall, solid Q2 performance supported by positive market developments, especially toward the end of the quarter. Order intake grew organically by 13% and net sales by 4%. Adjusted EBIT amounted to SEK 999 million with a margin of 13.8%. The order backlog increased to just over SEK 8 billion, which provides a solid foundation for continued growth in net sales going forward for the remainder of the year. As you all know, geopolitical uncertainty remains with delays in some project startups as one effect. Our assessment is that no business has been lost, rather deliveries and revenues that have been postponed to upcoming quarters. The turmoil in the Middle East unfortunately continues. However, Latour has limited exposure to the region and no material negative impact has been identified or recorded to date.

Speaker #5: Order intake grew organically by 13%, and net sales by 4%. Adjusted EBIT amounted to SEK 999 million, with a margin of 13.8%. The order backlog increased to just over SEK 8 billion, which provides a solid foundation for continued growth in net sales going forward for the remainder of the year.

Speaker #5: As you all know, geopolitical uncertainty remains, with delays in some project startups as one effect. Our assessment is that no business has been lost; rather, deliveries and revenues have been postponed to upcoming quarters.

Speaker #5: The turmoil in the Middle East, unfortunately, continues. However, Latour has limited exposure to the region, and no material negative impact has been identified or recorded to date.

Speaker #5: I will comment more on the financial outcome in detail later in this presentation. The investment portfolio has seen some activity during the quarter.

Johan Hjertonsson: I will comment more on the financial outcome in details later in this presentation. The investment portfolio has seen some activities during the quarter. In May, we made a partial divestment of our holdings in ASSA ABLOY and in Securitas. This is something that we do not do often, and it is important to emphasize that we remain as the largest shareholder in both companies with full support for the respective long-term strategies. By realizing a small portion of the value created in ASSA ABLOY and Securitas, we can continue to develop and expand our wholly-owned operations as we communicated earlier. The acquisitions activity in the wholly-owned operations has been high during the quarter with five completed acquisitions. I would like to hand over to Mikael to comment on our net asset value development. Over to you, Mikael.

Speaker #5: In May, we made a partial investment of our holdings in Assa Abloy and in Securitas. This is something that we don't do often, and it's important to emphasize that we remain the largest shareholder in both companies.

Speaker #5: With full support for the respective long-term strategies. By realizing a small portion of the value created in ASSA ABLOY and Securitas, we can continue to develop and expand our wholly owned operations, as we communicated earlier.

Speaker #5: The acquisitions activity in the wholly owned operations has been high during the quarter, with five completed acquisitions. And thereby, I'd like to hand over to Mikael to comment on our asset value development.

Speaker #5: So over to you, Mikael.

Speaker #6: Thank you very much, Johan. And when summarizing the first half of the year in figures, we can conclude that the net asset value decreased by 3.7% during the six months, and this is adjusted for dividend.

Mikael Johnsson Albrektsson: Thank you very much, Johan. When summarizing the H1 of the year in figures, we can conclude that the net asset value decreased by 3.7% during the six months. This is adjusted for dividend, and amounted to SEK 203 per share, to be compared to the SIXRX that increased by 8.1%. The share price at the end of June was SEK 193, which means that there was a discount of 5% compared to how we present the net asset value. As of yesterday, the net asset value was SEK 204 per share, and the share price on the same day closed at SEK 188, which gives a discount to our way of describing the net asset value of about 8%. The consolidated net debt decreased during the quarter from SEK 15.3 billion to SEK 12.3 billion.

Speaker #6: And amounted to SEK 203 per share, to be compared to the SIXRX that increased by 8.1%. And the share price at the end of June was SEK 193, which means that there was a discount of 5% compared to how we present the net asset value.

Speaker #6: And as of yesterday, the net asset value was SEK 204 per share, and the share price on the same day closed at SEK 188, which gives a discount to our way of describing the net asset value of about 8%.

Speaker #6: The consolidated net debt decreased during the quarter from SEK 15.3 billion to SEK 12.3 billion, and this is driven by proceeds from divestments in the investment portfolio, partly offset by dividend payments.

Mikael Johnsson Albrektsson: This is driven by proceeds from divestment in the investment portfolio and partly offset by dividend payments. The net debt corresponds to about 9% of the market value of our investments, leaving headroom for further acquisition as we go forward. With that, I hand over back to you, Johan.

Speaker #6: And the net debt corresponds to about 9% of the market value of our investments, leaving headroom for further acquisitions as we go forward. And with that, I hand back to you, Johan.

Speaker #5: Thank you, Mikael. And then we would like to continue by commenting on the entire investment portfolio. As I said at the beginning of this presentation, we made a partial divestment of our holdings in Assa Abloy and Securitas in May.

Johan Hjertonsson: Thank you, Mikael. We would like to continue by commenting on the investment portfolio. As I said in the beginning of this presentation, we made a partial divestment of our holdings in ASSA ABLOY and Securitas in May. Following the divestment, we hold 29% of the voting rights in ASSA ABLOY and 27.6% of the voting rights in Securitas and remain, as I said, the principal owner of both companies. The stock market improved slightly in Q2, while volatility remained elevated due to the geopolitical tensions and trade uncertainty. Adjusted to dividends and portfolio changes, the value development of our portfolio of listed holdings amounted to -8.8% during the H1 of the year, whereas SIXRX was +8.1%. Some of our holdings have shown weaker stock market performance, while others have been better.

Speaker #5: Following the divestment, we hold 29% of the voting rights in Assa Abloy and 27.6% of the voting rights in Securitas, and remain, as I said, the principal owner of both companies.

Speaker #5: The stock market improved slightly in Q2, while volatility remained elevated due to geopolitical tensions and trade uncertainty. Adjusted for dividends and portfolio changes, the value development of our portfolio of listed holdings amounted to minus 8.8% during the first half of the year.

Speaker #5: We're at 6RX, which was plus 8.1. Some of our performance has been better, while others have lagged. Until yesterday, August 18, the portfolio value was SEK 75 billion, and the total return amounted to minus 7.9% so far this year, whereas the 6RX is plus 10.6.

Johan Hjertonsson: Until yesterday, 18 August, the portfolio value was 75 billion SEK, and the total return amounted to -7.9% so far this year, whereas the SIXRX is +10.6. The comment on the holdings results that are reported are mixed, but the majority of the companies continue to show positive underlying performance and are adapting well to the changing market conditions. As in the wholly owned operations, market conditions improved towards the end of the quarter, and several companies reported strong demand in their key segments during their Q2 reports. Over the past decade, our holdings have demonstrated strong underlying growth and earnings development, despite the more challenging market conditions in recent years. We believe we own high-quality companies and continue to act as active principal owners in all our holdings, providing strong support for their long-term strategies.

Speaker #5: And if we go to the next slide, the holdings— to comment on the holdings, results that are reported are mixed. But the majority of the companies continue to show positive underlying performance and are adapting well to the changing market conditions.

Speaker #5: As in the wholly owned operations, market conditions improved towards the end of the quarter, and several companies reported strong demand in their key segments during their Q2 reports.

Speaker #5: Over the past decade, our holdings have demonstrated strong underlying growth and earnings development, despite more challenging market conditions in recent years. We believe we own high-quality companies and continue to act as active principal owners in all our holdings, providing strong support for their long-term strategies.

Speaker #5: And then we go to comments on the wholly-owned operations. Market conditions continue to improve, although the picture remains mixed across regions and sectors. Within the construction industry, demand is particularly strong within the building renovation, energy efficiency in an industrial infrastructure sectors, which benefit from several which benefits to several of our companies.

Johan Hjertonsson: The wholly owned operations. Market conditions continue to improve, although the picture remains mixed across regions and sectors. Within the construction industry, demand is particularly strong within the building renovation, energy efficiency, and in industrial infrastructure sectors, which benefits several of our companies. Most of our holdings report solid underlying demand with healthy order intake and growing order books. As I said, some project startups have been delayed, which has somewhat impacted net sales during the quarter. However, we expect revenues to be recognized in the coming quarters and do not believe any significant orders have been lost. During the quarter, ordering increased organically by a strong 13%, and net sales increased organically by a healthy 4%. Currency headwinds continue to give negative effects compared to last year, however, somewhat lower effects now than in the beginning of the year.

Speaker #5: Most of our holdings report solid underlying demand, with healthy order intake and growing order books. And, as I said, some project startups have been delayed.

Speaker #5: This somewhat impacted net sales during the quarter. However, we expect revenues to be recognized in the coming quarters and do not believe any significant orders have been lost.

Speaker #5: And during the quarter, orders increased organically by a strong 13%, and net sales increased organically by a healthy 4%. Currently, headwinds continue to have negative effects compared to last year.

Speaker #5: However, the effects are somewhat lower now than at the beginning of the year. The adjusted operating result for the quarter amounted to SEK 999 million, with an operating margin of 13.8%.

Johan Hjertonsson: The adjusted operating result for the quarter amounted to 999 million SEK with an operating margin of 13.8%. The profit development reflects good cost control and efficiency improvements in the operations. Overall, I am pleased with the quarter. Strong organic growth, especially in order intake, but also in net sales, as I said, and improving market positions and the impact of implemented measures provide a solid platform for the H2 to come. To comment on the acquisitions and divestitures, we have had a high pace within the acquisition area. During the quarter, we completed five acquisitions across our wholly owned operations. Swegon accounted for three of these through the acquisitions of Western Airconditioning in the Netherlands, LaminAir in Switzerland, and the residential ventilation business of Dantherm in Denmark.

Speaker #5: The profit development reflects good cost control and efficiency improvements in the operations. Overall, I'm pleased with the quarter—strong organic growth, especially in order intake, but also in net sales, as I said.

Speaker #5: Improving market conditions and the impact of implemented measures provide a solid platform for the second half of the year. If we continue to comment on the acquisitions and divestitures, we have had a high pace within the acquisition area.

Speaker #5: During the quarter, we completed five acquisitions across our wholly owned operations. Swegon accounted for three of these through the acquisitions of Western Air Conditioning in the Netherlands, Laminar in Switzerland, and the residential ventilation business of Duntherm in Denmark.

Speaker #5: Talyad acquired WICO in the US, enhancing its service offering and market presence in North America. BEMSIC acquired UK-based Seathings, strengthening its presence in the energy metering market.

Johan Hjertonsson: Caljan acquired WyCo Services in the US, enhancing its service offering and market presence in North America. Bemsiq acquired UK-based cThings, strengthening its presence in the energy metering market. Two acquisitions were made in the Q1. Latour Industries completed acquisition of REAC, and Bemsiq within Latour Industries acquired Scandinavian Sealing. Both companies are based in Sweden. Finally, as mentioned in the last quarter, Swegon also streamlines its operation and has divested non-core holdings. The transactions will have a positive impact on Swegon's margins. All in all, we have added net sales of 700 million SEK on an annualized basis so far this year, and I am looking forward to see what the upcoming quarters can bring. I hand back to Mikael to comment on the performance of respective wholly owned holdings. Over to you, Mikael.

Speaker #5: Two acquisitions were made in the first quarter. Latour Industries completed the acquisition of Alstor, and Densic within Latour Industries acquired Scandinavian Ceiling. Both companies are based in Sweden.

Speaker #5: And finally, as mentioned in the last quarter, Svegon also streamlined its operations and has divested non-core holdings. These transactions will have a positive impact on Svegon's margins.

Speaker #5: All in all, we have added net sales of SEK 700 million on an annualized basis so far this year, and I'm looking forward to seeing what the upcoming quarters can bring.

Speaker #5: And then I hand back to Mikael to comment on the performance of the respective wholly owned holdings. So, over to you, Mikael.

Speaker #6: Thank you very much, Johan. We start with Bemsic Group. Bemsic had a continued positive and stable performance in the quarter. Good growth in order intake amounted to 14%, driven by organic growth and partly offset by negative currency effects.

Mikael Johnsson Albrektsson: Thank you very much, Johan. Bemsiq Group had a continued positive and stable performance in the quarter. Good growth in order intake amounted to 14%, driven by organic growth and partly offset by negative currency effects. The total organic growth in net sales was 6%, with a strong development on the North American market and within the building automation business. The metering business is somewhat slower, and this is driven by a weak demand in the Nordics. The adjusted operating profit amounted to 124 SEK million with a good margin of 21.3%. As Johan just mentioned, Bemsiq acquired cThings in the UK during the quarter, an end-to-end hardware and software solution provider, primarily focused on energy usage. The company has an annual turnover of £2.5 million with a profitability level well above Latour's financial targets.

Speaker #6: The total organic growth in net sales was 6%, with strong development in the North American market and within the building automation business. The metering business is somewhat slower, and this is driven by weak demand in the Nordics.

Speaker #6: The adjusted operative profit amounted to SEK 124 million, with a good margin of 21.3%. And as Johan just mentioned, Bemsiq acquired Seathings in the UK during the quarter, an end-to-end hardware and software solution provider primarily focused on energy usage.

Speaker #6: And the company has an annual turnover of £2.5 million, with a profitability level well above Latour's financial targets. And with that, we shift page and take a look at Kalyan.

Mikael Johnsson Albrektsson: With that, we shift page and take a look at Caljan, where we could see that the positive momentum continues during the quarter with a strong demand from the large customers. Order intake more than doubled compared to the same quarter last year and driven by larger project orders within loading and unloading. Net sales grew organically by 3%, and the order backlog is at solid levels for coming quarters. The gross margin remains at healthy level. However, adjusted operating profit for the quarter was adversely affected by approximately 20 SEK million on a net basis, and this is reflecting a provision for a previously underpaid Section 232 steel tariffs in the US and the impact of refunded IEEPA tariffs also in the US.

Speaker #6: We could see that the positive momentum continued during the quarter, with strong demand from large customers. Order intake more than doubled compared to the same quarter last year and was driven by larger project orders within loading and unloading.

Speaker #6: Net sales grew organically by 3% in Q3, and the order backlog is at solid levels for coming quarters. The gross margin remains at a healthy level; however, adjusted operating profit for the quarter was adversely affected by approximately SEK 20 million on a net basis. This reflects a provision for a previously underpaid Section 232 steel tariff in the US and the impact of refunded IEEPA tariffs, also in the US.

Speaker #6: And as mentioned just before, Kalyan acquired WICO in the US during the quarter. WICO is a premium provider of maintenance and installation services within the material handling sector.

Mikael Johnsson Albrektsson: As mentioned just before, Caljan acquired WyCo Services in the US during the quarter. WyCo Services is a premium provider of maintenance and installation services within the material handling sector. WyCo Services has an annual turnover of $23 million with a profitability level above Latour's financial targets. We then continue with Hultafors Group, where we saw that the net sales grew organically by 4%, reflecting strategic investments in product development, sustainability, and digitalization. A strong performance in the personal protective equipment with 6% year-on-year growth while the hardware division continues to face a more challenging market. Gross margin remained at a high level, which combined with good cost control, supported an increase in adjusted operating profit to 252 SEK million, corresponding to a margin of 15.2%.

Speaker #6: WICO has an annual turnover of $23 million, with a profitability level above Latour's financial targets. We then continue with Hultafors Group, where we saw that net sales grew organically by 4%, reflecting strategic investments in product development, sustainability, and digitalization.

Speaker #6: There was a strong performance in personal protective equipment, with 6% year-on-year growth, while the hardware division continues to face a more challenging market. Gross margin remained at a high level, which, combined with good cost control, supported an increase in adjusted operating profit to SEK 252 million, corresponding to a margin of 15.2%.

Speaker #6: And the adjusted operating profit was positively impacted in the quarter by SEK 13 million, following the repayment of US IEEPA tariffs that was implemented during 2025.

Mikael Johnsson Albrektsson: The adjusted operating profit was positively impacted in the quarter by 13 SEK million following the repayment of US IEEPA tariffs that was implemented during 2025. We then turn page again and take a look at Innovalift. Order intake is in line with last year, despite challenging markets in the Middle East and Asia. We see stable net sales development with positive growth when adjusted for currency effects. The gross margin continues to improve step by step, and this is driven by good price management and cost control. Adjusted operating profit amounted to 98 SEK million, corresponding to a margin of 11.4%, demonstrating resilience in the challenging market conditions and continued currency headwinds. We then continue with Latour Industries. Latour Industries saw the order intake grew by 14%, of which 5% was organic growth.

Speaker #6: We then turn the page again and take a look at Innova Lift. Order intake is in line with last year, despite challenging markets in the Middle East and Asia.

Speaker #6: We see stable net sales development, with positive growth when adjusted for currency effects. The gross margin continues to improve step by step, and this is driven by good price management and cost control.

Speaker #6: Adjusted operating profit amounted to SEK 98 million, corresponding to a margin of 11.4%, demonstrating resilience in challenging market conditions and continued currency headwinds.

Speaker #6: We then continue with Latour Industries. At Latour Industries, the order intake grew by 14%, of which 5% was organic growth. REAC and Altor continue to see good underlying demand, while the other business units operate in a more challenging market.

Mikael Johnsson Albrektsson: REAC and Altor continues to see a good underlying demand while the other business units operate in a more challenging market. Net sales increased by 9% during the quarter and driven by acquisitions, while the organic growth decreased by 1% in the quarter. The adjusted operating profit was driven by strong performance in REAC and Altor, and the margin increased to 10.3% in the quarter. As the heading of the slide states, Latour Industries remains focused on developing its existing holders while continuing to identify new platform investment opportunities for the future. We turn page and take a look at Nord-Lock. Nord-Lock continues to deliver a very strong performance. Underlying demand remains solid, although order intake was below last year's level, but this is primarily due to a SEK 100 million project order received in the corresponding quarter last year.

Speaker #6: Net sales increased by 9% during the quarter, driven by acquisitions, while organic growth decreased by 1% in the quarter. The adjusted operating profit was driven by strong performance in REAC and Altor, and the margin increased to 10.3% in the quarter.

Speaker #6: And as the heading of the slide states, Latour Industries remains focused on developing its existing holdings, while continuing to identify new platform investment opportunities for the future.

Speaker #6: We turn the page and take a look at Nord-Lock. Nord-Lock continues to deliver a very strong performance. Underlying demand remains solid, although order intake was below last year's level. However, this is primarily due to a SEK 100 million project order received in the corresponding quarter last year.

Speaker #6: Net sales grew organically by 8%, and all regions contributed to the growth. The order backlog remains at a healthy level. Adjusted operating profit increased to SEK 162 million in the quarter, corresponding to a strong operating margin of 28%.

Mikael Johnsson Albrektsson: Net sales grew organically by 8%, and all regions contributed to the growth, and the order backlog remains at a healthy level. The adjusted operating profit increased to SEK 162 million in the quarter, corresponding to a strong operating margin of 28%. You will all get the opportunity to learn more about the Nord-Lock Group later in this presentation as we welcome CEO Daniel Westberg to the call in just a few minutes. But before that, we turn the page and we take a look at Swegon. For Swegon, order intake continued to develop positively during the quarter, with organic growth of healthy 20%, supported by strong demand in the Netherlands, North America, and India. Net sales was in line with last year's level, negatively affected by divestment and currency headwind, and organic growth amounted to 5%, where North America and Sweden performed well, delivering solid growth.

Speaker #6: And you will all get the opportunity to learn more about the Nord-Lock Group later in this presentation, as we welcome CEO Daniel Vesper to the call in just a few minutes.

Speaker #6: But before that, we turn the page and take a look at Swegon. For Swegon, order intake continued to develop positively during the quarter, with organic growth of a healthy 20%, supported by strong demand in the Netherlands, North America, and India.

Speaker #6: Net sales were in line with last year's level, negatively affected by divestments and currency headwinds. Organic growth amounted to 5%, with North America and Sweden performing well and delivering solid growth.

Speaker #6: The adjusted operating profit came in at SEK 268 million, with a margin of 10.4%. And as Johan mentioned earlier, Swegon completed three acquisitions during the quarter. We had Western Air Conditioning, a supplier of...

Mikael Johnsson Albrektsson: The adjusted operating profit came in at SEK 268 million with a margin of 10.4%. As Johan mentioned earlier, Swegon completed three acquisitions during the quarter. We had Western Airconditioning, a supplier of high HVAC solutions in the Netherlands, LaminAir, a Swiss distributor of room unit products for air distribution, and Dantherm's Danish residential ventilation business, strengthening Swegon's position in the residential indoor climate segment in Denmark. Swegon has also completed three strategic divestments since December 2025, and this is as part of its efforts to streamline the core business and strengthen long-term competitiveness. While these divestments have impacted growth figures compared to last year, they are expected to contribute positively to the margins going forward. That wraps up the run through of the business areas, and we change slide to our financial targets, and I hand over back to you, Johan.

Speaker #6: The HVAC solutions in the Netherlands, Laminar, a Swiss distributor of room unit products for air distribution, and Duntherm's Danish residential ventilation business, strengthening Swegon's position in the residential indoor climate segment in Denmark.

Speaker #6: And Swegon has also completed three strategic divestments since December 2025, as part of its efforts to streamline the core business and strengthen long-term competitiveness.

Speaker #6: While these divestments have impacted growth figures compared to last year, they are expected to contribute positively to the margins going forward. And that wraps up the run-through of the business areas. We now change slide to our financial targets, and I hand over back to you, Johan.

Speaker #1: Thank you, Mikael. Let’s comment on the financial targets and where we are. To summarize our financial targets: during the last 12 months, we have had growth of 3.8%, an EBIT margin of 14%, and a return on operating capital of 14%.

Johan Hjertonsson: Thank you, Mikael. The financial targets, let's comment on those and where we are. Summary of our financial targets during the last 12 months, we have had growth of 3.8%, EBIT margin of 14%, and return on operating capital of 14%. This is an outcome that we are very pleased with, and keep in mind that the targets are to be seen over a business cycle. Growth is driven both by acquisitions and organic growth, but with currency headwind. Adjusted for currency, the growth amounts to 8%. EBIT margin is on a good level, and return on operating capital is satisfying. If we comment a bit on our long-term perspective on the next slide, overall, we are pleased with the quarter and the progress made across the group.

Speaker #1: This is an outcome that we're very pleased with, and keep in mind that the targets are to be seen over a business cycle. Growth is driven both by acquisitions and organic growth, but with a currency headwind—adjusted for currency, the growth amounts to 8%.

Speaker #1: EBIT margin is at a good level, and return on operating capital is satisfying. And if we comment a bit on our long-term perspective, on the next slide—overall, we're pleased with the quarter and the progress made across the group.

Speaker #1: A strong order backlog provides a solid foundation, as I said, for revenue growth in the coming quarters. Our organizations are well positioned to capitalize on the improving market conditions.

Johan Hjertonsson: A strong order backlog provides a solid foundation, as I said, for revenue growth in the coming quarters, and our organizations are well-positioned to capitalize on the improving market conditions. As a long-term principal owner, we remain committed to supporting our holdings through both opportunities and challenges. Our focus continues to be on the long-term sustainable value creation, and we remain dedicated to creating attractive returns for our shareholders over time. With strong market positions, committed teams, and a long-term perspective, we are confident in our ability to continue creating sustainable value for our shareholders. Thank you. That was the presentation so far from Mikael and myself. Then we open up for the first Q&A session here to answer questions on the overall Q2 results, and then we will go into the Nord-Lock presentation. So open for Q&A.

Speaker #1: As a long-term principal owner, we remain committed to supporting our holdings through both opportunities and challenges. Our focus continues to be on long-term, sustainable value creation, and we remain dedicated to creating attractive returns for our shareholders over time.

Speaker #1: With strong market positions, committed teams, and a long-term perspective, we are confident in our ability to continue creating sustainable value for our shareholders. Thank you.

Speaker #1: That was the presentation so far, from Mikael and myself. Now, we will open up for the first Q&A session here to answer questions on the overall Q2 results. After that, we will continue with the Nord-Lock presentation.

Speaker #1: So open for Q&A.

Speaker #2: If you wish to ask a question, please dial #Key5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #Key6 on your telephone keypad.

Operator 2: If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad. The next question comes from Linus Sigurdsson from DNB Carnegie. Please go ahead.

Operator: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Linus Sigurdsson from DNB Carnegie. Please go ahead.

Speaker #2: The next question comes from Linus Sigurdsen from DNB Carnegie. Please go ahead.

Speaker #3: Thank you very much, and good morning. So, starting off, could you give some color on these comments about postponed project starts? What kinds of extended timelines are we talking about, and which parts of the business would you say are mainly affected?

Linus Sigurdsson: Thank you very much, and good morning. Starting off, could you give some color on these comments about postponed project starts? What kinds of extended timelines are we talking about, and which parts of the business would you say are mainly affected? Thank you.

Speaker #3: Thank you.

Speaker #1: Mikael, would you like to start to comment on that?

Johan Hjertonsson: Mikael, would you like to start to comment on that?

Speaker #4: Yeah, I can do that. In terms of timing, I mean, we are not talking about a very lengthy postponement. Rather, I mean possibly just a push forward into the coming quarter or so.

Mikael Johnsson Albrektsson: Yeah, I can do that. In terms of timing, we are not talking about very lengthy postponement, but rather, possibly a push forward into the coming quarter or so. In terms of what type of business these are reflecting to is where you see a bit of a more project orientation for the element, certain aspects of the Swegon business, and you can also see some elements of it in, for example, the Caljan business. In terms of timing, it is not an extensive timeline extension that we are looking, but more pushed from quarter to a quarter or so.

Speaker #4: And in terms of what type of business these are reflecting to is where you see a bit of a more project orientation. For example, certain aspects of the Swegon business, and you can also see some elements of it in, for example, the Kalyan business.

Speaker #4: But in terms of timing, it's not an extensive timeline extension that we're looking at, but more of a push from quarter to quarter or so.

Speaker #1: Yeah, and I could just add to that, that you have dynamics effects. I mean, I would argue that 13% order income growth organically is very strong.

Johan Hjertonsson: Yeah. I could just add to that you have dynamics effects. I would argue that 30% order income growth organically is very strong in the quarter. I would also argue that actually 4% organic growth in net sales is quite healthy in the quarter. However, there is a material difference between order income and net sales, and I think it is two effects. The lion effect of the difference is the cost of the order income is recorded in the quarter. Normally we have a kind of an average delay of 60 to 90 days from order income to sales. That is the main effect, and I think the minor effect is these postponed projects that we have seen.

Speaker #1: In the quarter, but I would also argue that actually 4% organic growth in net sales is quite healthy in the quarter. However, there is a material difference between order income and net sales.

Speaker #1: And I think it's two effects. The lion's share of the difference is because of when order income is recorded in the quarter, and normally we have kind of an average delay of 60 to 90 days from order income to sales.

Speaker #1: So that's the main effect, and I think the minor effect is this postponed project that we have seen.

Speaker #4: Correct.

Linus Sigurdsson: Correct. Okay. Yeah, that is very helpful.

Speaker #3: Okay, yeah, that's very helpful.

Speaker #1: Mikael is nodding here, so it was probably a correct answer.

Johan Hjertonsson: Mikael is nodding here, so it was probably a correct answer.

Speaker #3: And then moving to Swegon, it's positive to see the organic momentum picking up there. But just a question on the margin development. I mean, given the organic growth, and that these divested businesses were margin dilutive, if I'm not mistaken, what's driving this lower margin year over year?

Linus Sigurdsson: Moving to Swegon. Positive to see the organic momentum picking up there, but just a question on the margin development. Given your organic growth and that these divested businesses were margin dilutive, if I am not mistaken, what is driving this lower margin year-over-year? Is it just as simple as cost inflation?

Speaker #3: Is it just as simple as cost inflation?

Speaker #1: Yeah, I can start by commenting, and then please add, Mikael. I think for the divested businesses, it was kind of non-strategic businesses. And you're correct, Linus, they were margin dilutive.

Johan Hjertonsson: I can start by commenting, and then please you add, Mikael. I think on the divestment businesses, it was non-strategic businesses. You are correct, Linus, they were margin dilutive. Just by investing those businesses, we look forward to improved margins just by that effect. In the Swegon case on the margin, it is quite volume dependent, Swegon. Swegon, it is a manufacturer and have factories and quite a lot of fixed assets in that sense. However, I think they defended the margins fairly well, even though there were volumes in earlier quarters. With increased volume and the market coming back and Swegon continuing to take market share with a good, healthy gross margin development, we look forward to a quite strong drop-through coming in the coming quarters in Swegon. That is what we expect. Mikael, would you like to add?

Speaker #1: So just by investing in those businesses, we look forward to improved margins, just by that effect. And in the Swegon case, on the margin, I mean, it is quite volume dependent.

Speaker #1: Swegon, Swegon, it's a manufacturer and has factories, and quite a lot of fixed assets in that sense. However, I think they defended the margins fairly well, even though there were lower volumes in early quarters.

Speaker #1: And with the increased volume, and the market coming back, and Swegon continuing to take market share with good, healthy gross margin development, we look forward to a quite strong drop-through coming in the coming quarters in Swegon.

Speaker #1: That's what we expect. So, Mikael, would you like to add to that?

Speaker #4: No, I can just add we have had a rather long stint of positive book-to-bill with Swegon, where order income has been coming in.

Mikael Johnsson Albrektsson: No, I can just add, we have had a rather long stint of positive book-to-bill with Swegon where order income has been coming in. Which means, of course, that we feel confident this will be funneling through to revenue over time. Of course, when you build a company, you need to take on some costs. It is very hard to do that exactly one-on-one with how the net is developed. As Johan said, as those volumes funnel through, there is no reason to believe that the fundamental profitability of the company has reduced.

Speaker #4: So, which means, of course, that we feel confident this will be funneling through to revenue over time. And, of course, when you build a company, you need to take on some costs.

Speaker #4: It's very hard to do that exactly one-on-one with how the net sales develop. But as you once said, we ask that those volumes are funneled through.

Speaker #4: There is no reason to believe that the fundamental profitability of the company has decreased, so that's fair.

Linus Sigurdsson: No, that is fair. On Hultafors, same there, positive to see good momentum in PPE in particular. Is there any kind of project or type of customer especially that is driving the improvement there in PPE?

Speaker #3: And then on Hultafors, I mean same there—positive to see good momentum in PP in particular. I mean, is there any kind of project or type of customer especially that's driving the improvement there in PP?

Speaker #1: Mikael, would you like to start?

Johan Hjertonsson: Mikael, would you like to start?

Speaker #4: Yeah, I mean, I think I would say more that Hultafors is doing a good job and moving towards the end customer. I mean, it's been very strong—I mean, the underlying organic growth in that industry, of construction, has been a bit subdued, but I would say that Hultafors has done a great job in stepping forward, working toward the end customer, being more active in the market, driving campaigns.

Mikael Johnsson Albrektsson: Yeah, I would say more that Hultafors is doing a good job in moving towards the end customer. That it's been a very strong. The underlying organic growth in that industry of construction have been a bit subdued, but I would say that Hultafors has done a great job in stepping forward, working toward the end customer, being more active in the market, driving campaigns. So I think as we see it's a receipt of well-done market activities and being close to the customers more than any specific big project. They have a really good portfolio of products, but I think they've been serving the market and being out there in a good way, which we now see the fruits of.

Speaker #4: So, I think as we see it, it’s a receipt for well-done market activities and being close to the customers, more than any specific big project.

Speaker #4: They have a really good portfolio of products, but I think they have been serving the market and being out there in a good way, which we now see the fruits of.

Speaker #1: Yeah, and I'd like to add, I think the lion's share of Hultafors' sales is to the business-to-business sector—other professionals. But there is a fairly large share also of Hultafors' sales that is more exposed to private consumption.

Johan Hjertonsson: Yeah. I'd like to add, I think the lion's share of Hultafors sales is to the business-to-business sector, other professionals. But there is a fairly large share also of the Hultafors sales that is more exposed to private consumption. That has been more subdued during the last couple of years. I think maybe we see some early signs of that coming back as well.

Speaker #1: That has been more subdued during the last couple of years, and I think maybe we're seeing some early signs of that coming back as well.

Speaker #3: Thanks for that. And then just finally on Hultafors, I mean, with the reorganizing of the segment structure, is there anything we should be aware of there?

Linus Sigurdsson: Thanks for that. Then just finally on Hultafors, the reorganizing of the segment structure, is there anything we should be aware of there? What's the rationale behind that?

Speaker #3: What's the rationale behind that?

Johan Hjertonsson: Mikael?

Speaker #1: Mikael?

Speaker #4: Yeah, no, I mean, to me, that's, I would say, just a way of presenting. It's the figures for you guys in the market, really.

Mikael Johnsson Albrektsson: Yeah. That's I would say just a way of presenting the figures for you guys in the market, really. It doesn't mean that there's a significant underlying difference in how they operate. So it makes more sense from a business content perspective to bucket it in this way. It's also a closer way of how they operate in Hultafors Group. So there is no significant change underlying that has landed in that segmentation.

Speaker #4: It doesn't there it doesn't mean that there is a significant underlying difference in how they operate. So it makes more sense from a business content perspective to bucket it in this way for and it's also a closer way of the how they operate in Hultafors.

Speaker #4: So, there is no significant change underlying that have landed in that segmentation.

Speaker #1: Yeah, I think that's the important part. What you said last there, Mikael, is a more correct way of describing the business in the quarters—how it's actually operated.

Johan Hjertonsson: Yeah. I think that's the important part with the latter thing you said there, Mikael. It's a more correct way of describing the business in the quarter is how it's operated, actually.

Speaker #4: Yes, correct.

Mikael Johnsson Albrektsson: Yes. Correct.

Speaker #3: All right, that's crystal clear. Thank you very much.

Linus Sigurdsson: All right. That's crystal clear. Thank you very much.

Speaker #1: Thank you, Linus, for your questions.

Johan Hjertonsson: Thank you, Linus, for your questions.

Speaker #2: The next question comes from Derek Lalaberte from ABG Sundal Collier. Please go ahead.

Operator 2: The next question comes from Derek Laliberte from ABG Sundal Collier. Please go ahead.

Operator: The next question comes from Derek Laliberte from ABG Sundal Collier. Please go ahead.

Speaker #5: Thank you so much, and good morning. I wanted to follow up on the order intake, which was clearly strong, while the sales and particularly EBIT growth were more muted.

Derek Laliberte: Thanks so much, and good morning. I wanted to follow up on the order intake, which was clearly strong, while the sales and particularly EBIT growth were more muted. How much would you say of this gap is timing, and how much reflects any slower conversion mix or margin pressure? Thank you.

Speaker #5: How much would you say of this gap is due to timing, and how much reflects any slower conversion mix or margin pressure? Thank you.

Speaker #1: Sorry, thank you, Derek, for the question. Sorry I dropped you in the beginning. Was it on the overall group results?

Johan Hjertonsson: Thank you, Derek, for the question. Sorry I dropped you in the beginning. Was it on the overall group results?

Speaker #5: Yes, yes, on the overall industrial operations.

Derek Laliberte: Yes. On the overall industrial operations.

Speaker #1: On the overall industrial operations: Mikael, would you like to take your first?

Johan Hjertonsson: On the overall industrial operations. Mikael, would you like to take a crack at that?

Mikael Johnsson Albrektsson: Yeah. We see them primarily as a timing effect rather than that there is a difference in more increased margin pressure on the businesses overall. As Johan commented earlier, as that order intake funnels through the system as revenue, we feel confident that that will funnel through with a good drop-through. That is why we see it more as a timing effect rather than anything else really.

Speaker #4: Yeah, I mean, we see this primarily as a timing effect, rather than there having been a difference in more increased margin pressure on the businesses overall.

Speaker #4: As you commented earlier, as the order intake funnels through the system as revenue, we feel confident that it will funnel through with a good drop-through.

Speaker #4: So that's why we see it more as a timing effect, rather than anything else, really.

Speaker #1: And just to underline again what Mikael said, we've had, for many quarters, positive book-to-bill. So we have—and I think I said in the beginning—we have an order stock of over SEK 8 billion in orders on hand, which is a record high for us.

Johan Hjertonsson: I just underline again, which Mikael said, we have had for many quarters positive book-to-bill. We have, I think I said in the beginning, we have an order stock of over SEK 8 billion orders on hand, which is record high for us.

Speaker #5: Okay, great. And that 8 billion—I think you alluded to it a bit—but we should see then, I suppose, most of that be converted into revenue at least during the second half, I would presume.

Derek Laliberte: Okay, great. That 8 billion, I think you alluded to it a bit, but we should see then, I suppose, most of that to be converted into revenue, at least during the H2, I would presume.

Speaker #1: Yeah, absolutely. I cannot promise everything will be converted in Q3, but in Q3 and Q4 together, absolutely—it should be converted.

Johan Hjertonsson: Yeah, absolutely. I cannot promise everything will be converted in Q3, but in Q3 and Q4 together, absolutely, it should be converted.

Speaker #5: Perfect. And then in the report, you describe this gradual market recovery, but also the sort of mixed construction trends. Looking at it overall here, which end markets are actually improving and where would you say that demand is still weak? If you could give some more flavor on that?

Derek Laliberte: Perfect. In the report, you describe this gradual market recovery, but also the mixed construction trends. Looking at it overall here, which end markets are actually improving and where would you say that demand is still weak, if you could give some more flavor on that?

Speaker #1: Yeah, yeah, very good question, Derek. I mean, as you know, if you follow Latour, we are fairly heavily exposed to the building construction industry at large, right?

Johan Hjertonsson: Well, very good question, Derek. As you know, since you follow Latour, we are heavily exposed to the building construction industry at large, right? That is a huge industry in most economies around the world, right? I think it is important to look deeper down into the different segments of that industry. You see segments like air quality, air handling, the indoor air climate, there is a strong demand there. There we are well-positioned with Swegon and with Bemsiq, for instance. You see big investments coming into infrastructure development, defense. Defense is, of course, not only weapon and weapon system, but it is also a lot of buildings and roads and things to be constructed. You see a segment as data centers with extremely high growth in that area. So I think it is important to look at the building industry in its different segments.

Speaker #1: But that's a huge industry in most economies around the world, right? And I think it's important to look deeper into the different segments of that industry.

Speaker #1: And you see segments like air quality, air handling, and the air climate—the indoor air climate—there is a strong demand there. And there, we're well positioned with Swegon and with Bemsiq.

Speaker #1: For instance, you see big investments coming into infrastructure, development, defense—and defense is, of course, not only weapons and weapon systems, but it's also a lot of buildings.

Speaker #1: And roads and things to be constructed—you see a segment such as data centers, with extremely high growth in that area. So I think it's important to look at the building industry in its different segments, and then you have segments like residential building.

Johan Hjertonsson: And then you have segments like residential building. I would argue strongly that is very subdued in most markets, both in the US and in Europe. So there you have some examples of good, strong expanding segments, but also an example of a subdued segment in the residential construction area.

Johan Hjertonsson: Then you have segments like residential building. I would argue strongly that is very subdued in most markets, both in the US and in Europe. So there you have some examples of good, strong expanding segments, but also an example of a subdued segment in the residential construction area.

Speaker #1: I would argue strongly that it's very subdued in most markets, both in the US and in Europe. So there you have some examples of good, strong, expanding segments, but also an example of a subdued segment in the residential construction area.

Speaker #5: All right, I appreciate the clarity there. I wanted to ask about Swegon as well. I'm not exactly sure how to look at this, but you mentioned it benefiting from data center and industry-related projects here, sort of.

Derek Laliberte: All right. Appreciate the clarity there. I wanted to ask on Swegon also, I am not sure exactly how to look at this, but you mentioned it benefiting from data center and industry-related projects here. Can we view this as this now being enough to offset any, say, remaining weakness in the commercial and residential construction areas?

Speaker #5: I mean, can we view this as now being enough to offset any, say, remaining weakness in the commercial and residential construction areas?

Speaker #1: Yes, Derek, I think you can. It's important to remember Swegon is exposed to the residential segment, but that's a small part of the Swegon business.

Johan Hjertonsson: Yes, Derek, I think you can. It is important to remember, Swegon is exposed to the residential segment, but that is a small part of the Swegon business. The absolute lion's share of the Swegon business is on business-to-business to commercial buildings and infrastructure and so on. So I would say the short answer is yes to your question.

Speaker #1: The absolute lion's share of the Swegon business is on business to business to commercial buildings and infrastructure and so on. So I would say the short answer is yes to your question.

Speaker #5: Okay, great. And finally, after this, settle down here and ask: Abloy and Securitas—I mean, can you say something about how quickly you expect to deploy this additional financial flexibility into the wholly owned industrial operations?

Derek Laliberte: Okay, great. And finally, after this sell-down here in ASSA ABLOY and Securitas, can you say something about how quickly you expect to deploy this additional financial flexibility into the wholly owned industrial operations?

Speaker #1: No, but over time we will deploy that in the wholly owned industrial operations. But I think you can expect the same pace as we have had.

Johan Hjertonsson: No, but over time, we will deploy that in the wholly owned industrial operations. I think you can expect the same pace as we have had, and maybe somewhat increased pace. It is also a way to ensure that we long term can follow and support and provide capital to our wholly owned businesses when they expand, both organically, but also inorganically via M&A going forward. So it is a long-term action that we have taken to be able to support these very fine businesses that we believe a lot in, and I think has, throughout the years, created a lot of value. We expect to continue to do that. So this has assured us that we can do this over a long period of time going forward.

Speaker #1: And maybe somewhat increased pace, but it's also a way to assure that we, long term, can follow and support and provide capital to our wholly owned businesses when they expand, both organically but also inorganically via M&A.

Speaker #1: Going forward, so it's kind of a long-term action that was taken to be able to support these very fine businesses that we believe a lot in.

Speaker #1: And I think that throughout the years, we've created a lot of value, and we expect to continue to do that. So this is a sure sign that we can do this over a long period of time going forward.

Speaker #5: Okay, perfect. Those were all my questions.

Derek Laliberte: Okay, perfect. Those were all my questions.

Speaker #1: Thank you, Derek. Great. There are no more questions there. Any written questions, Mikael?

Johan Hjertonsson: Thank you, Derek Laliberte. Great. There are no more questions there.

Johan Hjertonsson: Thank you, Derek. Great. There are no more questions there.

Mikael Johnsson Albrektsson: No, we do not.

Johan Hjertonsson: Any written questions, Mikael?

Speaker #4: No, we do not have any written questions here, so.

Mikael Johnsson Albrektsson: No, we do not have any written questions here.

Speaker #1: Good. Then we are done with the Q&A session on the overall report. Now to the highlight of today's presentation, I'd like to introduce again Daniel Westberg, CEO of Nord-Lock Group, to give us an overview of Nord-Lock.

Johan Hjertonsson: Good. Then we are done with the Q&A session on the overall report. Then to the highlight of this presentation, I would like to introduce again, Daniel Westberg, CEO of Nord-Lock Group, to give us an overview of Nord-Lock. As I said before, after Daniel's presentation, we will have a Q&A, Mikael, I, and Daniel together with all of you. By saying that, I hand over to you, Daniel. Please, you have the floor.

Speaker #1: And as I said before, after Daniel's presentation, we will have a Q&A—Mikael, I, and Daniel together—with all of you. So, with that, I hand over to you, Daniel.

Speaker #1: Please you have the floor.

Speaker #2: Thank you. Thank you,

Daniel Westberg: Thank you, Johan. My name is Daniel Westberg. I am CEO of the Nord-Lock Group, as Johan said. My ambition here, I will try to give you an overview of how we work to create both shareholder value and customer value in the Nord-Lock Group. Also by the end on my presentation here, you should understand what is behind our tagline, "Build connections that last." With that, if we can move to the next slide. The group is a truly global group today. You see on the map here, we have got presence in most industrial companies, and 95% of our sales are outside of Sweden today, although the origin is very Swedish. Being global, it is one of the things that makes Nord-Lock good. We are able to serve our customers globally, wherever they are, and follow them around the world.

Speaker #4: Johan: So my name is Daniel Westberg, and I am the CEO of the Nord-Lock Group, as Johan said. My ambition here is to give you an overview of how we work to create both shareholder value and customer value in the Nord-Lock Group.

Speaker #4: And also, by the end of my presentation here, you should understand what's behind our tagline: "Build Connections That Last." So with that, if we can move to the next slide.

Speaker #4: The group is truly a global group today. As you can see on the map here, we've got a presence in most industrial countries. And 95% of our sales are outside of Sweden today, although the origin is very Swedish.

Speaker #4: And being global, it's one of the things that makes Nord-Lock good. We're able to serve our customers globally, wherever they are, and follow them around the world.

Speaker #4: It's also a good way to fend off competition. We meet them early and make sure we're better than competitors in every part of the world.

Daniel Westberg: It is also a good way to sense competition. We meet them early and make sure we are better than competitors in every part of the world. But it is also good in terms of tariffs, high transport costs, currency fluctuations, and also not to forget, from a sustainability aspect, try to minimize tariffs. The main driver being global is absolutely being close to the customer, being able to work with the customers in local language, their time zone, et cetera. You see this as well, I will not go through all the numbers here, but the 10 tech centers we have is a good example. These are centers where we can bring in customers, we can do tests on their applications to make sure that they perform as they should.

Speaker #4: But it's also good in terms of tariffs, high transport costs, currency fluctuations, and also, not to forget from a sustainability aspect, to try to minimize tariffs.

Speaker #4: But the main driver, being global, is absolutely being close to the customer—being able to work with the customers in their local language, their time zone, et cetera.

Speaker #4: And you see this as well. I will not go through all the numbers here, but the 10 tech centers we have—this is a good example.

Speaker #4: And these are centers where we can bring in customers; we can do tests on their applications to make sure that they perform as they should.

Speaker #4: And we have this in 10 places around the world. This is something where we are significantly better than the competition today. Also, here, the geographical expansion—and I'll show you later how we've created value for Latour over time.

Daniel Westberg: We have this in 10 places around the world, and this is something where we are significantly better than competition today. Also here, the geographical expansion, and I will show you later how we have created value for Latour over time. But also now we are able to continue to expand into new geographies. At the end of last year, we opened our own sales center in Brazil. Typically, we do an investment like this, and around 24 months later, we see a positive impact from investments into new markets. We still have areas where we can grow within the countries and within regions, and I think especially Southeast Asia is an area where we can continue to be more active to grow long term. Let us move to the next slide.

Speaker #4: But also, now we're able to continue to expand into new geographies, and at the end of last year, we opened our own sales entity in Brazil.

Speaker #4: And typically, we do an investment like this, and around 24 months later we see a positive impact from investments into new markets. We still have areas where we can grow within the countries and within regions, and I think especially Southeast Asia is an area where we can continue to be more active.

Speaker #4: To grow long term. So, slide. If we look at this global perspective here from a numbers perspective, you see that we've got a healthy split here.

Daniel Westberg: If we look at this global perspective here from a numbers perspective, you see that we have got a healthy split here. Europe, Middle East and Africa, 40%, Americas, 35%, and APAC, 25%. All regions grow for us, and that is important also in a slower growth region like Europe, we are growing, and we are growing above industrial production. Fastest growing for us is as it should be. It is the APAC region. It is probably more than 50% of the relevant market for us. So that being 25% of our share today, we want to grow faster than the other regions, and we are doing that. If we look at the segment exposure, also here we have a healthy mix of segments. We sell into a lot of industries, and that is making the group very stable, over a business cycle, they kind of even out a little bit.

Speaker #4: Europe, Middle East, and Africa 40%; Americas 35%; and APEC 25%. And, good here, all regions grow for us, and that is important. Also, in a slower-growth region like Europe, we are growing, and we're growing above industrial production.

Speaker #4: The fastest growing region for us, as it should be, is the APEC region. It's probably more than 50% of the relevant market for us. So with that being 25% of our share today, we want to grow faster than the other regions, and we're doing that.

Daniel Westberg: It is probably more than 50% of the relevant market for us. So that being 25% of our share today, we want to grow faster than the other regions, and we are doing that. If we look at the segment exposure, also here we have a healthy mix of segments. We sell into a lot of industries, and that is making the group very stable, over a business cycle, they kind of even out a little bit.

Speaker #4: If we look at the segment exposure, we also have a healthy mix of segments. We sell into a lot of industries, and that's making the Group very stable.

Speaker #4: Over a business cycle, they kind of even out a little bit. But also, when we look at where we are right now, we're active in some industries that are attractive to be in—like power generation, of course, is an attractive area to be.

Daniel Westberg: Also when we look where we are right now, we are active in some industries that are attractive to be in, like power generation, of course, is an attractive area to be. It is our largest segment. Mining is an area where we are very active as well and growing in. Also in the others part here, we see rapid growth in the defense side for all our product lines, basically. So we are quite pleased with the exposure we have, and we are continuously playing that to try to maximize our growth. Let us move to the next one. The Nord-Lock Group today, all our activities are based on five product lines and five brands. It is important for us that we have these five brands because we tailor our go to market per brand.

Speaker #4: It's our largest segment. Mining is an area where we're very active as well and growing in. And also, in the "Others" part here, we see rapid growth on the defense side for all our product lines, basically.

Speaker #4: So we're quite pleased with the exposure we have, and we're continuously working to maximize our growth. Let's move to the next one.

Speaker #4: So, the Nord-Lock Group today, all our activities are based on five product lines and five brands. It's important for us to have these five brands because we tailor our go-to-market per brand.

Speaker #4: And this is one of the things that is accelerating the growth, I think, a little bit in the last two years where we've really been emphasizing this.

Daniel Westberg: This is one of the things that is accelerating the growth, I think, a little bit in the last 2 years, where we are really emphasizing that we make sure we sell each product in the best way we can. As an example, the well-known Nord-Lock original wedge-locking washers, the origin of the group, we serve primarily via distribution. We work with OEMs and end users to get them specced in, but we supply via distribution. Whilst on the mechanical tensioning side and the hydraulic tensioning with the Superbolt and Boltight brands, it is very engineered, so there is an engineer from our side involved in almost every sale. Here we sell directly to OEMs and end users and normally do not go via distribution. It is important to have this tailored approach to make sure we are as good as we can for every customer.

Speaker #4: Make sure we sell each product in the best way we can. And as an example, the well-known Nord-Lock washers, the origin of the group, we serve primarily via distribution.

Speaker #4: We work with OEMs and end users to get them specced in, but we supply via distribution. Whilst on the mechanical tensioning side and the hydraulic tensioning with the Superbolt and Bolt-Up brand, it's very engineered.

Speaker #4: So there's an engineer from our side involved in almost every sale. We sell directly to OEMs and end users, and normally don't go via distribution.

Speaker #4: So it's important to have this tailored approach to make sure we're as good as we can be for every customer. And as you see on the right, we are always looking at, okay, what more can we do?

Daniel Westberg: As you see on the right here, we are always looking at, okay, what can we do more? What brands can we add and so forth. That leads us to the next slide. When we look at how we shall develop our company, we are very strict on where we want to be strategically. If we look at the market as a pyramid, as quite a traditional way to look at the market, we are in the top of the pyramid. This is an area where we want to be. This is where we have a lot of application challenges. This is where it is really safety critical. The cost of failure is high when something goes wrong. There is a lot of engineering often needed, and this is also where the customers are prepared to pay more.

Speaker #4: What brands can we add, and so forth? That leads us to the next slide. When we look at how we shall develop our company, we're very strict on where we want to be strategically.

Speaker #4: So, if we look at the market as a pyramid—which is quite a traditional way to look at the market—we are at the top of the pyramid.

Speaker #4: And this is an area where we want to be. This is where we have a lot of application challenges. This is where it's really safety-critical.

Speaker #4: The cost of failures is high when something goes wrong. There's a lot of engineering often needed, and this is also where the customers are prepared to pay more.

Speaker #4: And this is where we are today. And this is also where we will stay. We don't want to become a commodity supplier. Also as you can see here, one of the reasons why we're growing well and have been over a long time is that we're able to convert applications that are using what we believe is less good solutions, more commodity type of solutions into our premium solutions that are more safe.

Daniel Westberg: This is where we are today, and this is also where we will stay. We do not want to become a commodity supplier. As you can see here, one of the reasons why we are growing well and have been over a long time is that we are able to convert applications that are using what we believe is less good solutions, more commodity type of solutions into our premium solutions that are more safe. This is fueling growth, and this is something that we have been able to industrialize on a global basis, finding the applications around the world that we want to turn to Nord-Lock solutions. I believe we have a solid idea where we are and where we want to be also in the future, and also what will continue to drive growth for us over time. Let us move to the next one, Katarina.

Speaker #4: And this is fueling growth, and this is something that we've been able to industrialize on a global basis—finding the applications around the world where we want to turn to Nord-Lock solutions.

Speaker #4: So, I believe we have a solid idea of where we are, and where we want to be in the future, as well as what will continue to drive growth for us over time.

Speaker #4: So let's move to the next one, Katarina. Another important aspect in claiming to be leaders—it's easy to claim, but you also need to make sure you're a leader in every aspect.

Daniel Westberg: Another important aspect, claiming to be leaders, it is easy to claim, but you also need to make sure you are a leader in every aspect. We also need to follow the customers through their full journey. We are very active in the pre-design phase. As I mentioned before, we have got engineers out in most industrial companies working with the customers, answering their specific questions. We help with product verification. We can do on-site assessments. We do a lot of testing and validation. Then of course, we manufacture, we supply, we invoice, and that is where we make the money. But we need to be there through the whole lifetime of the design and assembly process as well.

Speaker #4: So we also need to follow the customers through their full journey. So we're very active in the pre-design phase. As I mentioned before, we've got engineers out in most industrial companies, working with the customers and answering their specific questions.

Speaker #4: We help with product verification. We can do on-site assessments. We do a lot of testing and validation. And then, of course, we manufacture. We supply.

Speaker #4: We invoice, and that's where we make the money. But we need to be there throughout the whole lifetime of the design and assembly process as well.

Speaker #4: And this, as well, is something where we are well ahead of the competition and making it quite difficult for smaller companies to come in and start competing on a global basis.

Daniel Westberg: And this as well is something where we are well ahead of competition, making it quite difficult for smaller companies to come in and start competing on a global basis because this takes time to build up. If we move to the next one, we can see what has this resulted in over the years. As you see here, there has been a phenomenal growth. Here I just show the valuation since 2009. Latour has owned Nord-Lock longer than that. You see an average growth here of around 13%, organically and via acquisitions, then also including currency effect. If we look at where we are right now, we are in a good period right now. If I exclude currency effects and M&A effects, we grew by just over 10% last year, and so far this year, 12.6%.

Daniel Westberg: This as well is something where we are well ahead of competition, making it quite difficult for smaller companies to come in and start competing on a global basis because this takes time to build up. If we move to the next one, we can see what has this resulted in over the years. As you see here, there has been a phenomenal growth. Here I just show the valuation since 2009. Latour has owned Nord-Lock longer than that. You see an average growth here of around 13%, organically and via acquisitions, then also including currency effect. If we look at where we are right now, we are in a good period right now. If I exclude currency effects and M&A effects, we grew by just over 10% last year, and so far this year, 12.6%.

Speaker #4: Because this takes time to build up, we move to the next one. We can see what this has resulted in over the years.

Speaker #4: And as you see here, I mean, there’s been a phenomenal growth. And here I just show the value creation since 2009. Latour has owned Nord-Lock longer than that.

Speaker #4: But you see an average growth here of around 13%, both organically and via acquisitions, and then also including currency effects. If we look at where we are right now, we're in a good period.

Speaker #4: If I exclude currency effects and M&A effects, we grew by just over 10% last year, and so far this year, 12.6%. And this is, of course, the result of everything we're doing.

Daniel Westberg: This is of course the result of everything we are doing around the world and not becoming complacent as a leader and continuing to have high ambitions. Conversion, that is probably the main one. This, as I said, identifying the right applications, driving growth globally, and also this workflow service that we try to provide, engineering, but also availability, quality. We offer a lifetime warranty on all our products, among others. There is a lot of things behind this fantastic financial development that is very sustainable as well over time. With that, Katarina, I think we are down to the last slide here. When safety really matters, that is when we want customers to work with Nord-Lock. Here you see a picture of Öresundsbron. Our solutions keep the cables in place. I hope you can feel quite safe next time you pass the Öresundsbron.

Speaker #4: Around the world, and not becoming complacent as a leader, we continue to have high ambitions. Conversion, I mean, that's probably the main one. And as I said, identifying the right applications, driving growth globally, and also this world-class service that we try to provide—engineering, but also availability and quality. We offer a lifetime warranty on all our products.

Speaker #4: Among others. So, there are a lot of things behind this fantastic financial development that is very sustainable as well over time. So with that, Katarina, I think we're down to the last slide here.

Daniel Westberg: With that, Katarina, I think we are down to the last slide here. When safety really matters, that is when we want customers to work with Nord-Lock. Here you see a picture of Öresundsbron. Our solutions keep the cables in place. I hope you can feel quite safe next time you pass the Öresundsbron. With that is all I had and I am open for questions. I believe you are.

Speaker #4: So when safety really matters, that's when we want customers to work with Nord-Lock. And here you see a picture of Öresundsbron. So our solutions keep the cables in place.

Speaker #4: So I hope you can feel quite safe next time you pass the Öresundsbron. So with that, that's all I had, and I'm open for questions. I believe you want to ask something.

Daniel Westberg: With that is all I had and I am open for questions. I believe you are.

Speaker #1: Yes. Thank you, Daniel. Excellent overview—flying over the Nord-Lock Group. Fantastic. So, we'll open up for the Q&A session. So, it's Mikael, myself, and Daniel.

Johan Hjertonsson: Yes. Thank you, Daniel. Excellent overview flying over the Nord-Lock Group. Fantastic. We open up for the Q&A session. Mikael, myself, and Daniel, we will try and answer the questions you have on Nord-Lock. No questions.

Speaker #1: We'll try and answer the questions you have on Nord-Lock. No questions.

Speaker #2: The next question comes from Linus Sigurdsson from DNB Carnegie. Please go ahead.

Operator 2: The next question comes from Linus Sigurdsson from DNB Carnegie. Please go ahead.

Operator: The next question comes from Linus Sigurdsson from DNB Carnegie. Please go ahead.

Speaker #3: Hi again. Thank you, Daniel, for being on this morning. First off, a question on APAC, and I assume China is obviously a big market opportunity for you.

Linus Sigurdsson: Hi again. Thank you, Daniel, for being on this morning. First off, a question on, APAC and I assume China is obviously a big market opportunity for you, but what do you see as the main challenges to grow in that region?

Speaker #3: But what do you see as the main challenges to grow in that region?

Daniel Westberg: We see this regionalization very clearly and China has been driving the Made in China 2025. They started that a long time ago, and there is a strong push in China for having it domestically produced. We are moving in that direction as well. We have good presence in China today, and if we look on the mechanical tensioning side, we are doing that locally now in China to support the goals. If we look on the washer side, we are supplying that out of Europe still. We have enormous advantages of scale, and it is massive investments to duplicate that. Today, we see this trend clearly, and we are trying to navigate this actively in the group.

Speaker #4: We see this regionalization very clearly, and China has been driving the Made in China 2025 initiative. They started that a long time ago, and there is a strong push in China for having domestically produced goods. We are moving in that direction as well.

Speaker #4: We have a good presence in China today, and if we look at the mechanical tensioning side, we're doing that locally now in China to support the growth.

Speaker #4: If we look on the washer side, we are still supplying that out of Europe. We've got enormous advantages of scale, and it would require massive investments to duplicate that.

Speaker #4: But today, we see this clearly, and we're trying to navigate these actively in the group.

Speaker #1: Yeah, no, but it's impressive. I think Nord-Lock, as you alluded to, Daniel, has been present in China for a very long time. And we've been taking part in the growth in China over a long period.

Johan Hjertonsson: Yeah. No, but it is impressive. I think Nord-Lock, as you alluded to, Daniel, has been present in China during a very long time. We have been taking part of the growth in China over a long time, and we have many great examples of customers and infrastructure projects in China where we have provided our solutions, and I think we are well-positioned to continue the growth also the coming years in China with Nord-Lock. So we have very good contacts, very good local team. We have a very strong presence in China.

Speaker #1: And we have many great examples of customers and infrastructure projects in China where we have provided our solutions. I think we're well positioned to continue the growth also in the coming years.

Speaker #1: In China with Nord-Lock, we have very good contacts, a very strong local team, and a strong presence in China.

Speaker #4: So, APAC is a region, but it is split up. We develop as well in China as we do in the other parts of APAC.

Daniel Westberg: APAC is a region, and if you split it up, we develop as well in China as we do in the other part of APAC.

Speaker #4: So I don't see a situation where we're now losing China due to the regionalization and tariffs and so forth. We're on track.

Johan Hjertonsson: Yes.

Daniel Westberg: I don't see a situation where we're now losing China due to the regionalization and tariffs and so forth. We're on track.

Speaker #3: Okay, thank you very much. And then, if you could talk about this opportunity that you see in specialty bolting, and how this area can command the same kinds of margins that you have in the legacy washer business.

Linus Sigurdsson: Okay. Thank you very much. If you could talk a bit about this opportunity that you see in specialty bolting and how this area can command the same kinds of margins that you have in sort of the legacy washer business.

Speaker #4: That's a good question. Because specialty bolting—it's an area where it's typically bolts and nuts manufactured to customer specs, where you have a lot of certifications around it.

Daniel Westberg: That's a good question, because specialty bolting is an area where it's typically bolts and nuts manufactured to customer specs, where you have a lot of certifications around it. It could be for different energy applications, could be for nuclear, could be defense certifications, et cetera. Typically, what we supply, it's a machine product that is not that complicated, but it's fully traceable down to an individual level. The full manufacturing process is documented. There's normally a lot of coatings on it, a lot of non-destructive, so they're often ultrasonically tested so that you don't have cracks in them and often in quite unique materials to withstand corrosion materials, et cetera. The paperwork and that aspect often has a higher value and cost than the product in itself.

Speaker #4: It could be for different energy applications, could be for, like, nuclear, could be defense certifications, et cetera. So typically what we supply, it's a machined product that is not all that complicated, but it's fully traceable down to an individual level.

Speaker #4: The full manufacturing process is documented. There's normally a lot of coatings on it, a lot of non-destructive things. So they're often ultrasonically tested.

Speaker #4: So you don't have cracks in them, and often in quite unique materials to withstand corrosive substances, et cetera, and so forth. So the paperwork and that aspect often has a higher value and cost than the product itself.

Linus Sigurdsson: Yeah.

Speaker #4: And so it's quite difficult for a local machine shop to replicate this, because they don't have that infrastructure in place. And this is a large market.

Daniel Westberg: It is quite difficult for a local machine shop to replicate this because they do not have that infrastructure in place. This is a large market. We estimate it is between SEK 10 billion and SEK 30 billion if we look at this from a global spec. It is quite an attractive area for us to enter as a group.

Speaker #4: We estimate it's between 10 and 30 billion SEK if we look at this from a global spec. So it's quite an attractive area for us to enter as a group.

Speaker #1: That's a very interesting new growth segment for Nord-Lock in the coming years. I agree, Daniel.

Johan Hjertonsson: It is a very interesting new growth segment for Nord-Lock in the coming years. I agree with Daniel.

Speaker #3: Yeah, thanks for that. And then, could you explain a bit more how you work strategically with distribution? I mean, we've seen you buying some distribution businesses in the past.

Linus Sigurdsson: Yeah, thanks for that. Could you explain a bit more how you work strategically with distribution? We have seen you buying some distribution businesses in the past, and I assume this is something we could see more of going forward.

Speaker #3: And I assume this is something we could see more of going forward.

Speaker #4: So yeah, we've been—typically, Nord-Lock has been buying the distribution companies in a specific country, and that's been a very successful way to grow the group.

Daniel Westberg: Typically, Nord-Lock has been buying the distribution companies in a specific country, and that has been a very successful way to grow the group. When we look at distribution today, they are our main channel to market for the washers, and we try to stay very loyal to our distributors. More than 90% of our products, all the washers we supply, go via distribution. The way we work is we try to create the market in every country, working with OEMs and end users. These are C items supplied in high volume, often going together with other C item components. We have this great synergy between Nord-Lock as the engineering partner and the product owner, and then the distributor that makes sure that they can get the right quantity at the right time, when they need it.

Speaker #4: When we look at distribution today, there are main channels to market for the washers, and we try to stay very loyal to our distributors.

Speaker #4: And more than 90% of our products—all the washers we supply—go via distribution. So the way we work is we try to create the market in every country, working with OEMs and end users.

Speaker #4: But these are C items, supplied in high volume, often going together with other C item components. So we have this great synergy between Nord-Lock as the engineering partner and the product owner.

Daniel Westberg: These are C items supplied in high volume, often going together with other C item components. We have this great synergy between Nord-Lock as the engineering partner and the product owner, and then the distributor that makes sure that they can get the right quantity at the right time, when they need it. This is an ecosystem that is serving us extremely well on the Nord-Lock side. But as I explained before, we have got the different dynamics on the more engineered part of the group. Did that answer your question?

Speaker #4: And then the distributor makes sure that they can get the right quantity at the right time when they need it. So, this is an ecosystem that is serving us extremely well on the Nord-Lock side.

Daniel Westberg: This is an ecosystem that is serving us extremely well on the Nord-Lock side. But as I explained before, we have got the different dynamics on the more engineered part of the group. Did that answer your question?

Speaker #4: As I explained before, we've got a different dynamic on the more engineered part of the group. Did that answer your question?

Speaker #3: Yeah, that's helpful. And then I had a final question, more broadly, on M&A and the opportunity there, and what your pipeline looks like currently.

Linus Sigurdsson: Yeah, that is helpful. Then I had a final question more broadly on M&A and the opportunity there and what your pipeline looks like currently.

Speaker #4: So we have a pipeline. I think, naturally, I cannot go into more details, but of course we have both dimensions of growth that are important to us.

Daniel Westberg: We have a pipeline. I think naturally I cannot go into more details than that, but of course, we have both dimensions of growth that are important to us. Always foremost is organic growth. We should grow organically about 10% every year. That is very important for us. Then we can absolutely grow via acquisitions as well. We want to do both.

Speaker #4: Always, foremost, is organic growth. I mean, we should grow organically above 10% every year. That is very important for us. And then we can absolutely grow via acquisitions as well.

Speaker #4: So, we want to do both.

Speaker #1: Yeah, I think we could add, Daniel, that we look for acquisition opportunities in all of the product segments, which Daniel alluded to. But especially, I would say there are quite interesting acquisition opportunities in this new energy bolting segment also going forward, right?

Johan Hjertonsson: Yeah. I think we can add, Daniel, that we look for acquisition opportunities in all of the product segments, which Daniel alluded to. But especially, I would say there is quite interesting acquisitions opportunities in this new Energy Bolting segment, also going forward, right?

Speaker #4: That's correct, Johan.

Daniel Westberg: That's correct, Johan.

Speaker #3: Okay. Thank you very much.

Linus Sigurdsson: Okay. Thank you very much.

Speaker #1: Thank you, Linus. Let's see if we have somebody else who would like to ask some questions.

Johan Hjertonsson: Thank you, Linus. Let's see if we have somebody else who would like to ask some questions.

Speaker #2: The next question comes from Derek Lalaberte from ABG Sundal Collier. Please go ahead.

Operator 2: The next question comes from Derek Laliberte from ABG Sundal Collier. Please go ahead.

Operator: The next question comes from Derek Laliberte from ABG Sundal Collier. Please go ahead.

Speaker #3: Thank you, and great presentation. I wanted to ask about your fantastic high-quality products here, and looking over time, whether pricing power has remained intact and whether customers are still accepting premium pricing in the safety-critical applications.

Derek Laliberte: Thank you, and great presentation. I wanted to ask on your fantastic high-quality products here and looking over time whether pricing power has remained intact and whether customers are still accepting premium pricing in the safety-critical applications.

Speaker #1: Good, interesting question, Derek. And I'm sure Daniel can answer it.

Johan Hjertonsson: Good, interesting question, Derek Laliberte, and I am sure Daniel Westberg can answer it.

Daniel Westberg: It is a difficult question to answer because, of course, there is price competition, and there are competing products on the market. We then actively need to work out how do we defend our position? I alluded to some of the aspects that are making us great. It is the absolute service levels we have and the proximity to customers, being able to solve their problems, and I think moving forward, also being able to support our customer digitally in a superior way. It is important. We are also working quite hard to make sure that we are perceived as a leader as well, and the brand is very important for us here. When you look at safety critical applications and safety critical product, there is a reluctance to take risk, and this is benefiting us quite well.

Speaker #4: So, it's a difficult question to answer, of course, because there's price competition and there are competing products on the market. And we then actively network.

Speaker #4: How do we defend our position? And I alluded to some of the aspects that are making us great. I mean, it is the absolute service levels we have, and the proximity to customers.

Speaker #4: Being able to solve their problems. And I think, moving forward, also being able to support our customers digitally, in a superior way, is important.

Speaker #4: We're also working quite hard to make sure that we are perceived as a leader as well, and the brand is very important for us here.

Speaker #4: And when you look at safety-critical applications and safety-critical products, there is a reluctance to take risk. And this is benefiting us quite well.

Daniel Westberg: If it fails, it could result in massive asset damages with large costs, personal damage, environmental damage, et cetera. The willingness in a lot of cases is, okay, it is not worth it. We know it works, it is proven, et cetera. I think it is a large cocktail of activities that positions us where we are. Anything to add from Mikael Johnsson Albrektsson or you, Niklas?

Speaker #4: When, if it fails, it could result in massive asset damages—with large costs, personal damage, environmental damage, et cetera. So the willingness in a lot of cases is, okay, it's not worth it.

Speaker #4: We want with Nord-Lock—we know it works, it's proven, et cetera. So I think it's a large cocktail of activities that positions us where we are.

Speaker #4: And yeah, anything to add from Mikael or you?

Speaker #1: Yeah. Mikael would like to add.

Johan Hjertonsson: Niklas, I would like to add.

Speaker #2: Yeah, I think in that, I mean, assessment, I think it's also important to add that the Nord-Lock product, in the applications that they go into, is a very, very small part of the total customer material for the applications.

Mikael Johnsson Albrektsson: Yeah, I think in that assessment, I think it is also important to add that the Nord-Lock product in the applications that they go into is a very, very small part of the total cost of material for the applications. Which means back to the comment that Daniel had, to take risk on that, is that where you want to save the extra cent? It is a typically very good position also to be a very small part of the total solution, but very safety critical, which helps in maintaining an argument for that price position over time.

Speaker #2: Which means, back to the comment that Daniel had—to take risk on that. Is that where you want to save the extra cent? And so it’s a typically very good position, also to be a very small part of the total solution.

Speaker #2: But it's very safety-critical, which helps in maintaining and arguing for that price position over time.

Speaker #1: I think Daniel's example with the Øresund Bridge is a pretty good one, right? That's a massive investment to build that bridge. But it's quite important that those bolts for the cables hold up, right?

Johan Hjertonsson: I think Daniel's example with the Øresund Bridge is a pretty good example. Massive investment to build that bridge, but quite important that those bolts for the cables hold up. But still a comparatively small part of the whole investment of the bridge. I think it is just important to underline, yeah, we sell the best product, but we also sell knowledge in this area. The engineers building the bridge, they want a knowledge partner that are really experts on secure bolting. I think that is important as well to remember. It is a knowledge business as well, Daniel. Right, Daniel?

Speaker #1: But still, it's a comparatively small part of the whole investment in the bridge. And I think it's an important point to underline. Yeah, we sell the best product.

Speaker #1: But we also sell knowledge in this area. And the engineers building the bridge want a knowledge partner that's really an expert on secure bolting.

Speaker #1: And I think that's important as well to remember. It's a knowledge business as well, right, Daniel?

Speaker #4: Absolutely. And I think we can—so, coming back to the margin question, I think if we look at the last two years, I mean, we’ve been able to increase margins, actually.

Daniel Westberg: Absolutely. Coming back to the margin question, I think if we look in the last two years, we were able to increase margins, actually. I think when we see margin development, it will be more mix effect. Portfolio rather than margin dilution. That I do not see, at least not in the next few coming years. We will be able to maintain that.

Speaker #4: So I think when we see margin development, it will be more of a mix effect—so, portfolio—rather than margin dilution. That I don't see, at least not in the next few coming years.

Speaker #4: We will be able to maintain that.

Speaker #3: Yeah, I got it. That's a very interesting point there, I really appreciate it. Finally, I was wondering if you could also give some flavor on whether there's anything to say about how much of Nord-Lock's demand you would consider structural versus cycle-driven, particularly in the infrastructure, energy, and, I suppose, industrial applications.

Derek Laliberte: Yep, I got it. It is very interesting points there. I really appreciate it. Finally, I was wondering if you could give also some flavor on something to say about how much of Nord-Lock's demand you would say is structural versus cycle driven, particularly in the infrastructure, energy, and I suppose industrial applications.

Speaker #1: Daniel?

Johan Hjertonsson: Daniel?

Speaker #4: Yeah, I think most applications actually are exposed to the business cycle and follow the demand like any other industrial product. The big difference, if you would compare—I come from SKF, for example—and if you look at the growth we have compared to SKF, I mean, it's a lot higher all the time.

Daniel Westberg: Yeah. I think most of our applications actually are exposed to the business cycle and follow the demand like any other industrial product. The big difference, if you would compare, I come from SKF, for example, and if you look on the growth we have compared to SKF, it is a lot higher all the time and it is a lot smoother. It is because we have this constant inflow of new customers all the time. We are able to convert customers to the Nord-Lock solutions. So the business cycle doesn't really matter. It should never be an excuse for us for not doing well. But of course, it will maybe be a difference, do we grow by 11% or 14%? That is the business cycle. We are affected by the business cycle in every industry and follow that.

Speaker #4: And there's a lot smoother. It's because we have this constant inflow of new customers all the time. We're able to convert customers to the Nord-Lock solutions.

Speaker #4: So the business cycle doesn't really matter. It should never be an excuse for us for not doing well. But of course, there may be a difference—do we grow by 11% or 14%?

Speaker #4: That is the business cycle, and that is where we are affected by the business cycle in every industry and follow that. But you don't really see it.

Derek Laliberte: Yep.

Daniel Westberg: But you don't really see it, and I don't think you will see it, if we do a good job.

Daniel Westberg: You don't really see it, and I don't think you will see it, if we do a good job.

Speaker #4: And I don't think you will see it if we do a good job.

Speaker #1: Yeah. And having said that, Daniel, as you said in the beginning of your presentation, we are in quite a few industrial segments. I mean, one is energy, for instance.

Johan Hjertonsson: Yeah. Having said that, Daniel, as you said in the beginning of your presentation, we are in quite many industrial segments. One is energy, for instance, and energy has its cycle, depending on oil price and other things. Infrastructure has its cycle. These cycles are not necessarily always in tune and are in the same, so they also even out throughout the year. So you could say we limit our cycle exposure in that sense, that we are in different segments, if you understand.

Speaker #1: And energy has its cycles, depending on oil prices and other things. And infrastructure has its cycle. These cycles are not necessarily always in tune or the same.

Speaker #1: So they also even out throughout the year. So you can say we limit our cycle exposure in that sense, since we are in different segments.

Speaker #1: If you understand.

Speaker #4: Absolutely. And also the regional exposure—I mean, also.

Daniel Westberg: Absolutely. Also the regional exposure, also

Johan Hjertonsson: as well, on top of that.

Johan Hjertonsson: As well, on top of that.

Speaker #1: As well, on top of that.

Speaker #3: Perfect. Thank you very much.

Derek Laliberte: Perfect. Thank you very much.

Speaker #1: Thank you, Derek. And then, just to check if there are any other questions—no? And no written ones, Mikael?

Johan Hjertonsson: Thank you, Derek. Then just to check if there is any other questions. No? No written ones, Niklas?

Speaker #2: No written questions recorded. No.

Mikael Johnsson Albrektsson: No written questions recorded, no.

Speaker #1: Great. So, thank you so much, Daniel, for the presentation of Nord-Lock Group. And thank you all for listening in to both the presentation of Latour's Q2 report and the deep dive into Nord-Lock.

Johan Hjertonsson: Great. Thank you so much, Daniel, for the presentation of Nord-Lock Group, and thank you all for listening in to both the presentation of Latour's Q2 report and the deep dive into Nord-Lock. We look forward to speak to you again, when we release our Q3 reports later this autumn. That concludes the whole session, and we would like to, from Mikael and Daniel and myself, thank you very much for listening in. Thank you.

Speaker #1: And we look forward to speaking to you again when we release our Q3 reports later this autumn. So, that concludes the whole session. We would like to, from Mikael, Daniel, and myself, thank you very much for listening in.

Speaker #1: Thank you.

Operator: The host has ended this call. Goodbye.

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