Bittium Oyj

Good morning, everyone, and welcome to this webcast. My name is Karoliina Malmi and I'm Head of Communications and Sustainability at Pittium. And with me here are our CEO, Petri Toljamo, and CFO, Petri Hiljanen. Today we are going to talk about our financial development of the second quarter of this year and the first half of this year and of course the main events resulting to the results. And at the end of the presentation, we have reserved some time for the Q&A. So anytime, if you have questions, you can place them through that Q&A button on your screen. And at the end, we will go through your questions. And before we start today about forward-looking statements, they may have risks and uncertainties and may occur differently. So bear that in mind. But without further ado, I will let Petri you to start.

All right, thank you Karoliina. So I'll start with the highlights for the second quarter 26. So first our net sales grew 60%, EBITDA was 27.5% and operating profit was 22.2% of the net sales. Our operating cash flow was 8.8 million euro, our new orders Order intake was 46.3 million euros and we have personnel at the end of the Q2 575 employees. Let's then look at the first half. Net sales growth was 37.2%, EBITDA 22.3% of the net sales, operating profit 16.6% of the net sales. Operating cash flow 36.9 million euro, new orders 81 million euros and our order book 102.2 million euros. And I'll summarize this briefly, the first half. I think that our final sale performance was excellent, both on the net sales and operational results. We were within company's strategic long-term final sale goals. Also the technology leadership and future investments through the new product launches and strategic partnerships. I think that we are progressing pretty well. Our second half was very active announcing new different investments and announcement on the product size. Also, we have put emphasis on the scaling the operations to ensure fast deliveries, also investing in process development and data driven systems continued as well. The main driver for the good results at PIT team was the defense and security business segments, driving the growth 67.8% on the first half and also very strong order intake. Medical turns profitable and restructuring start to pay off. Engineering service side is still a challenge. The market is not very positive at the moment and we are doing a turnaround there. Our ICP sector reclassified to defense, which is enabling us to access to international defense ETFs as well. Strong cash flow, significantly strengthened financial position and record order backlog. We believe it's provide a strong platform for the strategy implementation and future growth. And I'll now hand over our CFO, Petri Hiljanen, to cover the financial parts.

Thank you, Petri. Good morning, everybody. My name is Petri Hiljanen. I'm the CFO for Bitium. Let's review some key financials for the Last quarter and then first half. Our sales reached 36.6 million, which were heavily leaning towards the defense and security deliveries. Product deliveries especially went up. The service sales was flat comparing to previous quarters, so most of the Growth was contributed by product sales and deliveries. Quarterly operating result for second quarter was 8.1 million and it was an increase to EBIT of 22.2%. There was especially good performance at the defense and security, which then, of course, offset the other segments a little bit less, a little bit poor performance, especially engineering services was negative during the second quarter. As mentioned earlier, for second quarter and also for the first half, the sales growth was contributed mostly by defense and security product deliveries. Medical grew a bit, some 6.3%, but then again, as mentioned earlier, the performance with engineering services was not at the level that we are happy with. Top line went down there. And now as we can see that momentarily we have been exceeding even the long-term target range for sales, but that's then again heavily related to the cycle legality of the deliveries and the quarterly sales has been fluctuating during the past years and then past quarters. So that of course is explaining that part. And now the margins for the first half. It gives us a solid base to go forward and to develop further our strategy, especially in the defence and security area. But fluctuations, as you can see here, are quite high between the quarters and first half, especially has been lower than second half. But that's, again, something that we are not going to be considering as a change here from the previous years. Investments for future growth, we invested more than 10 million to R&D. Of course, percentage-wise, it was a little bit less than earlier, but then again, our sales went up so much that it's explaining the little bit lower percentage. Our investments and capitalizations were something like 3 million during the first half. And that's especially supporting our growth going forward. Our long-term financial goals here, as we can see, we are confirming them that the annual growth target is between 20 to 30%, and an operating result target is between 10 to 20% of sales. Order book reached also historically high number and then it was more than 100 million. The order book has been contributed mostly by the defense and security and it's concentrated there. Our customer base also has been mostly there. Our confidence of course is that Confidence for the outlook is still there, so we keep our outlook for this year sales 140 million to 155 million and estimate that the operating profit will be in the bracket of 26 to 32 million. That's about the outlook. Cash flow was extremely good, and now we can see and confirm that we are Net debt free company, so operating cash flow was 36.9. We were able to convert a huge amount of networking capital to cash during the first half. Operating cash, as mentioned, it was close to 37 million, and it leaves us a good base to continue with our development path forward. We informed this morning also that in addition to earlier paid dividend, we're paying an additional dividend of 0.15 euros, 15 cents, and then it will be paid shortly. So there was a stock exchange release this morning. You can refer to that. And balance sheet here as a final note. So we're in a good position to go forward and continue our growth and then even look for additional items that will help us grow. Key items, of course, are the capacity investments in production and development also. And then, of course, as I mentioned earlier in the strategy, Communication that of course we're looking and we're interested in other companies and working closely with certain partners and those kind of things. So healthy cash flow, healthy cash position, and that's a good basis for our future growth. And now, Petri, please.