Arctic Falls (ARFA) investor relations material

Executive summary

• Achieved revenue levels matching the previous year's record third quarter despite market uncertainty and challenging weather conditions.

• Operating profit for Q3 was 24,608 TSEK, with a margin of 42.2%, down from 49.2% last year due to higher costs.

• Net income for the quarter was 18,306 TSEK, compared to 20,764 TSEK last year.

• Maintained strong customer engagement and satisfaction, supported by favorable winter conditions but impacted by higher energy costs and reduced demand for track preparation.

• Focused on business development, new service offerings, and achieved or is expecting TISAX certification to strengthen information security.

Financial highlights

• Net sales for the rolling 12 months increased by 3%, with Q3 net revenue at 58,321 TSEK, nearly unchanged year-over-year.

• Revenue for the nine-month period increased by 4.3% to 127,829 TSEK.

• EBIT margin for the quarter was 42.2%, down from 49.2% the previous year, due to higher electricity and organizational development costs.

• Cash flow from operations for the quarter was 10,550 TSEK, significantly lower than 28,732 TSEK last year, mainly due to temporary buildup of receivables.

• Cash and cash equivalents at quarter-end were 18,233 TSEK.

Outlook and guidance

• Entering the final quarter with 4.6% growth and a focus on long-term growth and strengthened competitiveness.

• Financial targets include annual growth of 10–20%, EBIT margin around 40% mid-term, net debt/EBITDA below 3x, and dividend payout of 30–50% of net income.