The Managing Director’s comments

Higher result for both the Service Business and the Car Business

First quarter

Our operational earnings for the quarter amounted to MSEK 382, which was MSEK 38 higher compared with the previous year. The margin increased from 3.5 per cent in the previous year to 4.0 per cent this year. The higher operational earnings for the quarter were attributable to both the Service Business and the Car Business, which reported earnings of MSEK 328 and MSEK 65, respectively. The higher result for the Service Business was attributable to Sweden and explained by high efficiency. The higher result for the Car Business was attributable to new car sales. Underlying order intake for new cars was 14 per cent higher compared with the previous year. The order backlog for new cars amounted to approximately 17,600 cars at the end of the quarter, which represents a solid order backlog from a historical perspective. Net debt in relation to EBITDA amounted to 1.4 times, which is well below our target of a maximum of 2.0 times.

Focus on profitability and capital efficiency

Our Service Business and Car Business are operations that together form the foundation of our strategy to be a full‑service provider throughout the car’s life cycle. Through our financial targets, we establish a clear framework for long‑term value creation.
The Service Business is a stable operation that is relatively unaffected by changes in the external environment. During the first quarter, operational earnings in the Service Business amounted to MSEK 328. This represented 79 per cent of the Group’s total earnings and was the highest result reported for a first quarter. The margin increased from 12.2 per cent to 12.4 per cent.

Demand within the Service Business was stable across all operating countries and organic growth during the first quarter amounted to 3 per cent, primarily attributable to Norway, also operations in Sweden and Western Europe reported positive organic growth. To achieve our objective of profitable growth, we continuously work to improve profitability in our Service Business. Our Business Excellence team works together with the operations
to identify the most efficient processes and implement them at facilities where there is potential for improvement.

The Car Business is an operation that combines a focus on capital employed and profitability. Our objective is to maintain a high inventory turnover, particularly for used cars. A high inventory turnover contributes to lower capital employed and an up‑to‑date and relevant cars in inventory for our customers.

Uncertain external environment

Geopolitical uncertainty has resulted in a challenging market environment during the quarter, nevertheless, we reported
order intake that was 14 per cent higher compared with the previous year.

In Sweden, we have seen increased interest from private customers in electric vehicles, particularly new electric car models with longer range.

In Norway, demand for new cars was somewhat lower at the beginning of the quarter, as new tax regulations led to high deliveries in the fourth quarter of 2025. Towards the end of the quarter, however, demand and order intake
in Norway were higher than in the previous year.

In Belgium and Luxembourg, demand remained strong during the quarter. Sales of used cars during the quarter were characterised by a certain degree of customer caution, primarily related to higher‑priced used electric vehicles in Sweden, Belgium and Luxembourg.

Our inventory of used cars is at a solid level. We expect continued stable demand within the Service Business in the coming quarter. We have a strong financial position and a clear strategy for continued growth in the Service Business and for creating long‑term value for our customers and shareholders.

Per Avander, Managing Director and CEO