Bittium Oyj

Good morning, everyone, and welcome to this webcast on Bittium's Financial Statements 2025. My name is Karolina Malmi. I'm Head of Investor Relations, Marketing and Sustainability at Bittium. And with me here today are our CEO, Petri Toljamo, and CFO, Petri Hiljanen. A few forward-looking statements quickly. Just to mention, by their nature, they involve risk and uncertainty and may differ from actual results. And about the agenda. Quickly we start with some highlights of 2025, then CFO will walk you through our numbers from last year and then we continue with business updates and finally outlook for this year and time for Q&A at the end. However, you are able to place questions at any time by clicking the button on your screen and we will address them at the end. But without further ado, I will let our CEO Petri Toliamotu start.

Thank you, Carolina. So I'll start with the highlights of the 2025. Shortly, I think we had a pretty good year. So first, I think that we are able to say that on CMD September last year, we defined a new growth strategy where the theme is that accelerate international growth. I think this is proceeding as planned. Second, our order intake grew to 153 million, roughly from 100 million euro from previous year, and as well as the order backlog grew to around the 78 million from the 45 million euro. And this is very significant and sizable amount of the orders we managed to secure on the last year. Then the number three, I would say that the bid team's market position in defense market strengthened significantly. We have been able to make headway on the international market, and I think that we have very relevant position thanks to our advanced leadership on the technology side. And fourth, if we summarize the year, the net sales grew 40% year on year, while the operating profit was 16.3%, and EBITDA was 32 million euro, which reflects 27.2% of the net sales. Then I'll hand over to our CFO, Petri Hiljanen. He will go through in detail the final CL path, and I'll get back to then us.

Thank you, Petri. So let's first walk through the Q4 financials, the highlights there. So our Q4, we delivered record high sales. Their sales reached 54 million, and it grew about 63% year on year. And this year is clearly a breakthrough for Bithium in the international market. So we got good new customers. open up new markets, so this is a good result for us in that sense. Also, we need to keep in mind that the Q4, the comparison period 24, was already quite strong, so relatively the strengthening has been quite phenomenal here for 25. Growth was fueled by defense product sales and at the same time medical and engineering services remained about the same level as last year. As you can see from the graph there, so at least for the sales, it's typical for us that the quarterly fluctuations are quite substantial, and this is also the case for 2025. Our operating profit reached 15.4 million. There's an increase of 9.4 million from last year, quarter four, 24, and the operating margin was thus 28.6%. And then there, as mentioned earlier, so high volumes and unfavorable product mix contributed to this increase in profitability. EBITDA reached 23 million, and last year it was 8.6, so it's a hefty increase there at EBITDA level as well. Full year 25, as Petri mentioned, so it was 40% growth in topline sales. It reached 119 million. And as I said earlier, the growth was driven by product sales in defense and security segment, engineering and medical, they remained pretty much at the same level as 24. Full year operating profit, a key measurable for our business, was €19.4 million at the margin of 16.3%. And one should keep in mind that there's also close to €1 million of one-time cost included in the operating profit. This... Sales, the structure of sales, as we can see, is heavily driven by the product sales, which is very much in line with our long-term strategy. Full year EBITDA reached 32.4 million, and it's about 27% of our net sales. Some words about the R&D investments, so we continue to invest in the core technologies, however, the relative percentage fell a bit from the historical numbers and also it's a little bit less than the strategic target. It was 12.9%, but it's explained by the high sales in 25. But anyway, so we're committed to these strategic targets to develop our products and offering. Related to the investments, there's also some added higher depreciations that we took on the defense and security business products and historical development cost, and that's also explaining a bit on the increase of the R&D expenditure. Some key items, takeaways from the cash flow. Cash flow was negative for full year. It was a little bit less than €1 million negative last year, 24. It was exceptionally high. There were one-time items related to historical projects. Now, as we go forward with the growth, our growth sales grew so heavily, and it also drove the accounts receivable to quite high level, which of course then increases networking capital, decreases our cash flow. We also took measures to secure inventories for future deliveries. So those are the primary reasons for higher networking capital. Some words about balance sheet. So Bitium's balance sheet is very strong. Our equity ratio is 71%, and then it's... And also we are net debt free. So those are the key items that are providing us fuel for future growth initiatives. Then again, from business and operations side, there's definitely items related to networking capital that are, you know, have been increasing, but then again, they are supporting our short-term business activities as we go forward towards 2026. All right, so I will hand over now to Petri. Thank you, Petri.