Ladies and gentlemen, welcome to the Coor Service Management Q1 report for 2023. For the first part of this call, all participants will be in a listen-only mode. Afterwards, there'll be a question and answer session. Today, I am pleased to present President and CEO, AnnaCarin Grandin, and CFO and IR Director, Andreas Engdahl. Please go ahead.
Thank you and welcome. Thank you for listening to our Q1 report at Coor. I will start by giving you a summary of the first quarter, including a market update, and then continue to present our triple bottom line results. I will hand over to Andreas to present some more details around financial performance before we sum up and have a Q&A. As I said, I will start with some highlights in the first quarter. There has been high business activity in Q1. In Denmark, we continue to allocate resources to start up the large contract with Danish Building and Property Agency. Startup activities have also been a focus in Norway with a new contract with Technopolis, Gjøvik Municipality. I briefly mentioned our latest acquisition, Skaraborgs Städ, on the previous slide.
Before going through that acquisition a bit more, I would like to mention a few words on our M&A approach. We are always looking for value-adding acquisitions, but with a clear approach. Strategic fit to our operation is key. We continue to focus on the Nordics. We also continue to focus on our 2 largest service areas, cleaning and property services, that accounts for 70% of our total revenue. On top of that, we believe an acquisition must bring some new value to Coor besides just volume. That could be a variety of both values, such as the new geography or increased density in a service area. An example of that from the past is the acquisition of Norrlands Miljövård in 2019 that gave us density and increased coverage of cleaning services in the northern part of Sweden.
Another example is the acquisition of Skaraborgs Städ last year that gave us increased density in the southern part of Sweden. A reason to acquire a company could also be to strengthen a competence. A good example of that is the acquisition of Veolia in 2021 that brought some 250 highly skilled property technicians to Coor, and those have been hard to find in the market. Well, solid financials is also important, and we are only looking for well-managed companies. We believe the effort is meant to take on and turnover invested spend on developing our own business. At Coor, all acquisitions are fully integrated. By doing that, we can realize synergies and utilize competencies across the organization in a much more efficient way.
We also create opportunities for cross-selling services between Coor and the acquired company. To do that, it becomes important to find targets we believe can be managed independent of the existing owner. We see many values with our acquisitions. Having said that, it is also important to say that organic growth is our number one priority. As I mentioned, I would like to give you some more details on Skaraborgs Städ. Skaraborgs Städ has been in the business for more than 50 years with a strong presence in the mid Sweden. The acquisition brings density to some areas we already cover, but also new geographies in Sweden. Skaraborgs Städ is a well-managed company run by three brothers and 800 engaged and motivated employees, delivering services to many interesting customers.
We expect the transaction to be completed in the second quarter following the customary review by the Swedish competition authorities. Moving on to triple bottom line results for Q1. Starting with business sustainability and some of the key financial metrics in Q1. Organic growth is more or less flat in the quarter, and we continue to see large swings on country levels. More on that later on. Acquired growth is limited in the quarter, fully related to Sweden and the acquisition of Skaraborgs Städ. The EBITDA margin for Q1 is 5.1%, a small improvement from the previous quarter. In the first quarter, indexation and executed mitigating activities continue to reduce negative inflation impact that we saw of the summer last year.
Compared to the COVID period, we continue to see effects of normalized volume mix, as well as expected effects of starting up large contracts. Cash conversion is an LTM number, it continues to be strong at 95%, and that's well in line with our target to staying above 90%. Leverage is also an LTM number. With 1.9, we are in line with our previous quarter and well in line with our target of staying below 3. Moving on with our performance in social and environmental sustainability, we see that we continue to improve our TRIR level. As of Q1, TRIR is down to 7.0 compared to 8.1 last year. I'm happy to see a steady improvement, but there are still work to be done in order to reach the target being below 3.5.
Gender balance continues to be stable at around 50/50. On the environmental KPIs, we continue to see a steady positive development in Scope 3 emissions from our food and beverage operations. The CO2 emissions are down compared to last year, and the share of clients aligned to science-based targets has increased from 4% last quarter to 5% in Q1. We also see a small positive development on Scope 1 CO2 emissions from our vehicle fleet. An example of that of the green transition is the 250 electric vehicles ordered for the Swedish operations with delivery during the year. Nevertheless, we are not on track compared to our target. This is partly due to the strong growth in our company, delivery time of electric vehicles, and some challenges in the infrastructure.
We recognize that we need to do even more from an internal perspective. With that, I will hand over to Andreas to continue with some details on the financials.
Thank you, AnnaCarin. With a look at organic growth. As Anna-Karin mentioned, organic growth for Q1 is more or less flat. The past two quarters, we have low organic growth, given by ending a couple of large contracts late 2021 and in the beginning of 2022, combined with project volumes related to large maintenance stops in the Norwegian oil and gas industry that was completed Q2 last year. Most of these negative effects are phased out of some of our comparable numbers towards summer this year. Looking at organic growth over a longer period of time, organic growth has been around 4% since our IPO in 2016. Coor's total turnover of SEK 11.8 billion can be viewed in different dimensions.
From a contract type perspective, we see that the split continues to be stable with IFM contracts just under 60% and single service contracts just over 40%. Slicing the turnover by service line, we see that we continue to see a normalization of the volume mix more similar to pre-COVID. Before COVID, food and beverage accounted for 13% of Coor. That reduced to 7% during the pandemic. Now in Q1, we are back at double-digit share in that segment. Cleaning continues to be our largest service line with 38%. Somewhat lower volumes than expected compared to the COVID period that are compensated with new contracts and a continued focus on quality from our customers. On customer segment, the split remains diversified.
Returns from the past year with increase in share of public contracts and decline in share within the energy sector, reflecting recent changes in our contract portfolio has now stabilized. All in all, we see a well-balanced portfolio in all three dimensions. On EBITDA and margin, Q1 ended at SEK 162 million and 5.1% in margin. A slight margin improvement versus previous quarter. Past few quarters, we have seen a normalization of volume mix, an increased use of resources that normalizes margins compared to a pandemic period. No changes in the contract portfolio, with both ending and starting up large contracts also affects profitability. Looking at Q1 country by country, starting with Sweden. Growth is driven by the contract with Volvo Group that was ended in May last year, to a large extent compensated by new lead-based contracts and a recovery of variable volumes.
The normalization of volume mix and increased use of resources normalizes margins in Sweden with a solid 9.9% in Q1. We continue to see strong organic growth with 18% in Denmark. This is driven by starting up the contract with Danish Building and Property Agency. Startup activities are still the main focus for the Danish organization, combined with strengthening central functions to handle larger volumes. Margin in Q1 is in line with the previous quarter. In Norway, as we have described the past couple of quarters, we had high project volumes in the oil and gas industry that was completed in the second quarter last year. This negative effect is partly offset by a recovery in variable volumes as well as starting up new contracts that was won late last year.
Margins are lower compared to last year, rising effect on lower volume and scalability as well as start-up costs for new contracts. In Finland, new contract wins and return of variable volumes cannot fully offset the ended Finnish part of the contract with ABB that was ended in April last year. Margins are lower from ending this large contract and also from a winter with heavy snowfall. Moving on to cash flow, we see that our key metric cash conversion remains stable at 95% in Q1, well in line with our target of staying above 90%. As always, we have strong focus on cash flow in our organization. We continue to see stable payment patterns from our customers. On the balance sheet, net working capital as percent of net sales is stable at around negative 8%.
The normalization of our volume mix has also normalized the balance sheet compared to the pandemic period, where lower variable volumes also resulted in somewhat less working capital tied in ongoing work. Leverage ended at 1.9. This is in line with previous quarter and well in line with the target of staying below 3. With dividends being paid now in May as well as finalizing the acquisition of Skaraborgs Städ, one should expect a somewhat higher leverage compared to Q1 in the second quarter. With that, I hand it back over to you, AnnaCarin.
Thank you, Andreas. Before we go into Q&A, I would like to sum up Q1. Organic growth is more or less flat in the quarter, and we continue to see large swings on the country level. On margin, we continue to see expected effects of normalized volume mix and start-up of large contracts. We have a solid cash flow at 95% and a leverage of 1.9, well in line with our financial targets. In this quarter, we have taken another important step in our sustainability journey by committing to reach net zero by 2040. We have continued to focus on value-adding acquisitions and are now waiting for the review by Swedish Competition Authority before we complete the acquisition of Skaraborgs Städ.
In the end, I would like to extend my warm thanks to our customers for the confidence you have in us. An equal big thanks to my colleagues. Together, we are contributing by building and developing a sustainable and successful company. With that, we open up for questions.
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Okay, I just would like to thank all of you who listened into this call, and I hope that you stay safe and have a good Wednesday. Thank you.
Thank you very much. That does conclude our conference call today. Thank you all for your participation. You may now disconnect.