Hiab Oyj Unsp/Adr

Welcome to HIAP's first quarter 2026 results call. My name is Aki Vesikallio. I'm from the investor relations team. Today's results will be presented by CEO Scott Phillips and CFO Mikko Puolakko. As a reminder, please pay attention to the disclaimer in the presentation as we will be making forward-looking statements. Before handing over to Scott and Mikko, let's take a look at the highlights of the quarter. Book-to-bill was positive in all three geographical areas. Our sales were still impacted by low order intake in the U.S. during the previous three quarters. However, our comparable operating profit margin increased sequentially to 13.5%, and we continued to deliver strong cash flow. The new operating model announced in January was successfully implemented in the beginning of April. We also specified our outlook for full year comparable operating profit margin from above 13 to above 13.5. Let's then view today's agenda. First, Scott will present the group level topics. Mikko will go through reporting segments financials in more detail, and the outlook. After Mikko, Scott will join the stage for key takeaways before the Q&A session. With that, over to you, Scott.

Thank you, Aki. Greetings, everyone, and a warm welcome to our first earnings report for 2026. I would like to start out sharing three developments highlighting our execution of our profitable growth strategy. So during third quarter earnings report, as you recall, we shared our plans to reduce our costs by 20 million euros within this year as a result of the increased uncertainty that has led to a more challenging demand environment in the U.S., as well as the overall development of the order backlog. Consequently, we have announced plans during quarter to evolve our organizational structure and our operating model targeting to create three positive outcomes. Number one is to evolve to further clarity on our end to end accountability through further decentralization by reducing layers of complexity within our overall organizational design. That should help us to attend to a few issues that occasionally come to light in terms of suboptimal customer support. And then third, overall it'll allow us and enable us to reduce our fixed costs in line with our plans, which should create much more improvement in our value creation resiliency. So core to our strategy is our aim to lead the sustainability transition for on-road load handling industry. So I'm really pleased to share the second development here in the execution of our strategy. And that's the fact that we have validation in our science-based targets to achieve our commitment to be net zero by 2050. The third development I would like to share with Pride is another example of a key outcome-based innovation co-created with our distribution partner, Mixa, together with key customers in Spain, aiming to optimize productivity for dump-over column lift tippers by developing a new Dell brand lightweight liftgate. So another great example of our focus on developing new innovations together with our customers and our partners that's purpose built to solve our customers most challenging problems. So let's get into the headline results of our group financials for the quarter. So starting off with our order intake development, I'm pleased to see that our organic order intake increased by 7% in constant currencies versus the comparison period. In actual exchange rates, order intake reached the level of 402 million euros or 419 million euros in constant currencies for an 11% positive variance. ING contributed 15 million euros in the quarter, so in line with our business plan. And all regions contributed a solidly positive book-to-bill, increasing our backlog sequentially. Now, unlike prior periods, we didn't get the advantage of large, lumpy orders, as myself and Miko and Aki have talked about in the past, but rather resulting from a number of increased activities that manifested in smaller order intake or midsize order intake. So, no real large orders of note to report within the period. So, overall, a good start to the year, despite the uncertainty in the macro environment. So let me turn your attention to the regional breakdown of our order intake profile for the quarter. Now, as you can see from the table, we had a growth in all regions with the exception of Asia Pacific. Europe, Middle East and Africa increasing from 203 million to 207 million euros or two percentage points. The Americas grew by 15% from 145 million euros to 166 million euros. And Asia remained relatively flat at 29 million euros compared to 30 million euros in the comparison period. Now, Europe continues to show signs of steady demand growth, which we do see in all businesses, but most notably our lifting solutions. The growth in the Americas is primarily driven by ING acquisition, but at the same time, we certainly did not see further declines in the U.S. Overall, the environment remains highly uncertain with ongoing trade tensions in the US and heightened geopolitical tensions in the Middle East. So let's turn our attention to the revenue results for the quarter. Our revenues were down 7% year over year due to the 114 million euros lower order book we started the period with. Now in line with our expectations that revenues were on the level of 383 million euros, as you can see on the table on the left hand side. Our rolling 12 month revenues are now converging towards our order intake level of prior periods at 1.528 billion euros. Our share of services and actual exchange rates increased the percentage point due to the decline in equipment sales. However, as Miko will explain, we had a nice increase in service sales and constant currencies. And ING contributed 13 million in sales or 3%. And currencies overall had a negative impact of 4% on group results. Now, geographically, our share of sales were impacted by the positive order intake development in the second half of 2025 in Europe, while the Americas was negatively impacted by the decline in the U.S., but partially offset by ING. Now, in addition to the increase in Europe, our Asia-Pacific region was also slightly up, improving to 26 million euros, or 7% year over year. And I'm pleased to see the development of ECHO portfolio sales as they increased by 23% to 176 million euros or 46% of sales overall. Now with our year-over-year decline in sales, our comparable operating profit was negatively impacted, so I'll guide you through the numbers. For the period, we delivered 52 million euros on sales of 383, which is 22% decline versus the comparison period, but all in all, a good start to the year. On a relative basis, the group was on a level 13.5% versus 16% last year. Now, the factors most impacting comparability were lower sales in the U.S., lower indirect costs affecting gross profit, and lower fixed costs affecting operating profit. Now, consequently, our operative return on capital employed declined due to the reduction of profit, items affecting comparability, and the ING acquisition. Now, MECO will further guide you through the bridge. Now, wrapping up on our quarterly check-in for how we were performing versus our long-range targets. Our 10-year Tager is now at 5% versus our long-range targets with 16% off comparable operating profit. Our last 12 months is at 13%. And versus our long range target of greater than 25%, we're in line at 27%, albeit a decline sequentially for the factors that I shared earlier. So with that, I would like to turn stage over to Mikko to share with you results for the reporting segments.

Thank you, Scott, and good morning also from my side. Let's start first with the equipment segment performance in quarter one. So the equipment orders were 284 million euros during the quarter. This is 10% increase year on year. But if we exclude the currency impact, the growth would have been 14%, so in constant currencies. Lifting equipment grew very nicely. Growth came mainly from Americas like elaborated already by Scott, very much driven by the ING claims acquisitions. The delivery equipment orders were flat year on year. I would say that taking into account the market situation in the US and the fact that we did not book any major key account or defense orders during the quarter, I would say that the equipment segment performed well in terms of orders during quarter one. Sales were 266 million euros. This is minus 9% year on year. And again, if we exclude the currency impact, the decline would have been minus 6%. Lifting equipment actually grew in all three geographies and the decline in sales is coming solely from our delivery equipment, especially in the U.S. market. The U.S. decline is very much due to the past quarters below one book-to-bill caused by the volatile tariff environment and the delayed decision-making by the U.S. customers. Equipment comparable operating profit was 32 million euros or the margin 12.1%. And the biggest driver for the lower profitability was the decline in the delivery equipment sales in the U.S. Like I mentioned earlier, equipment profitability was very much impacted by the lower sales as can be seen in the bridge on the right-hand side. Lower sales affected the cross-profit margin as the cross-profit margin includes also fixed production overheads, so the factory overheads. We had a slight positive impact coming from the lower SG&A costs. But I would say that the cost savings from the early announced 20 million euros cost savings program are not yet visible in our quarter one results. Then let's have a look on service performance. And I would say that currencies had a significant impact on services orders and sales during quarter one. Service orders were 119 million euros with constant currencies, actually service orders would have grown 4%. Sales was 117 million euros. And again, with constant currencies growth would be plus 5%. So in absolute terms and in constant currency services for one revenues would be 123 million euros. Really nice development in our recurring services like spare parts and maintenance. Those sales grew in quarter one. However, installation services sales declined. So I would say that the recurring services growth was able to offset really nicely both the currency headwinds as well as the decline in the installation services. The number of connected equipment and maintenance contracts also continue to grow in quarter one. So really nice performance in executing also the services strategy. Services profitability was stable at 28 million euros or the margin 23.6%. If we look the services bridge, on the right hand side, services sales growth would have been actually 6 million euros with constant currencies instead of 1 million decline as we have reported. Recurring services growth very much offsetting the decline in installation services. And then the negative effects impact mainly coming from the weaker US dollars offsets the volume growth. Next, let's have a look on Hayat's total financials. The overall Hayat profitability decline came from equipment volumes as you were able to see from the previous bridges. Low volumes affected the cross-profit margin as the cross-profit includes fixed production overheads. Our SG&A costs were stable in constant currencies Like mentioned, the cost savings program effects are not yet visible in quarter one. Those start to be more visible in the second half of this year. Currencies had a notable impact on quarter one profitability, mostly stemming from the weaker US dollar. We booked 11 million euros restructuring costs during quarter one. as items affecting comparability. So this is below the comparable operating profit. These items affecting comparability, they are related to the ongoing 20 million euros cost savings program, headcount reduction, including also the ZEPRO daily production move from Sweden to Poland. And our core one tax rate was 26%. Our cash generation continued on a very good level, in total 75 million euros in quarter one. The cash conversion was really high, 186%. Our inventories decreased slightly, but I would say that the main contribution to our cash flow was coming from the networking capital, like accounts receivable decline and the VAT receivables collection. So those were the main contributors to quarter one cash flow. IAF has a very, very strong balance sheet with the net cash of 219 million euros at the end of March. Our gearing was stable at minus 23% and thinking the target to keep our gearing below the 50% threshold, this would allow us to raise more than 700 million euros debt. So really strong balance sheet to execute inorganic growth strategy. We paid the 75 million euros dividend in April the 2nd. So this is not yet, the dividend payment is not yet visible in our quarter one numbers. And then on the right hand side chart, you can see that we have only one major debt item. That's the 150 million euros bond, which is maturing in quarter three this year. And today we have also revised or specified our outlook for the 2026 based on a very good start for the year. So we estimate that the comparable operating profit margin for this year exceeds 13.5%. This is up from the earlier above 13% what we announced in February. The key assumptions that behind this outlook are more or less unchanged what we said in February. We expect EMEA to continue to grow, USA not further declining from the previous quarters. However, the customer decision making continues to be still slow and difficult to predict. 2026 has started with 114 million Euro slow order book Also the March 26 order book was almost 40 million euros lower than what we had a year ago. We have factored in the outlook also the 20 million euros cost savings materializing in 2026 as mentioned mainly effective from second half onwards. And then our group admin underlying costs would be more or less on 2025 level, plus then approximately 5 million euros investments in process and systems development, mostly in the second half this year. So with those words, then I would hand the word back to Scott, please.