Scanfil Oyj Ord

Good morning. Welcome to Scanfilx Q3 2026 Interim Report Call. Together with me here is our CEO, Mr. Christophe Sut, and our CFO, Iiris Heiskanen. As usually, you can ask questions through the chat box, so type in the questions and we will take the questions at the end of the presentation in the Q&A section. Now, handing over to Christophe, please.

Thank you, Pasi. Welcome to Scanfield Q3 and let's get started. Starting with a couple of news related to what happened during the quarter. We continue our expansion with new customer and customer contract, which is also driving the expansion of our facilities. And we were pleased during the quarter to announce that we will increase the size of our facilities in Poland, in Myslovice. and expansion will actually bring the overall size of the factory to 36,000 square meters, which will make it our biggest operation in Europe. This site is focusing on system integration and adaption on a very consistent basis, strong performance and we've been rewarded by our customers and confidence and trust from our customers. So very pleased that we can support the growth of our customers in that operation. In the same time, I felt it was good timing to update you on the progress we are doing in Sucu. We announced in the spring the need we had for an expansion of our Sucu operation to support and our customers in China. And as you can see on the picture, this is going well and moving forward. We are now in full speed at preparing for the go-live date. At least the building is growing and building up. The plan is to have the building ready by mid next year. So moving forward as planned and as expected. On another note, when it comes to news in Q3, we had the capital market day where we adjusted our long-term target and two adjustments were made. towards the long-term target. One was the growth number that we moved up to 15%, as well as the debt level where we modified to have a corridor between one and two in order to support our growth and continue our expansion. So, as you can see, driven by customer acquisition, quite a few number of projects going on in Scanfield to continue to prepare the future. But let's go back to what happened and how Q3 unfolded. Q3 was a very strong quarter for Scanfield. We landed at 252.2 million euros, which was a growth of about 32%, which was including an organic growth of 8.5%, which was definitely a strong number and showing a very positive trend and development. In terms of profitability, EBITDA was 17.8 million, growing 26% and at 7.1% within the corridor we are aiming for. So a continuous positive development. And then finally, our earnings per share also strong, growing 25% at 0.18, which was the outcome of, I would say, a solid quarter. When we look at the revenue trend, we continue the expansion driven by both a mix of organic and acquisitive growth. We'll get back to it a bit later, but we continue to see in Q3 a strong performance from the acquired entity, which contributed to the growth, as we were also ramping up projects that on that side contributed to the organic growth. When it comes to the profitability, profitability was obviously benefiting from the growth, moving up to the range of almost 18 million, which was in line with what we were expecting from the quarter. Looking now at the different regions, America's region is continuing to gain speed, reaching soon 10% of the total revenue of Scanfield. We had a record quarter with a growth of 74% of the overall revenue, 5% of it being organic, We have in North America a strong development of our eco-identity at Co and also a strong development of two customer segments, aerospace and defense that is developing very nicely as well as energy and cleantech that is also seeing a positive development. What was also pleasing to see is that we continue to deliver consistent good level of margin, the third quarter, 8.7, which was the outcome of all those new projects that we had launched end of last year that are now getting in maturity and contributing positively. to the profitability of the region. So all in all, following the growth trajectory we have drawn for Americas and positive. APAC region knew a very strong growth in the quarters. We are talking about above 16% of growth in the quarter. And it was a lot of happening in that quarter for APAC. As you saw in the picture, first of all, we are fully busy expanding Suchu, which can create some disturbances on the operational but moving forward at least in a very good speed. In the same times we have also a significant amount of projects that are ramping up in Suchu which was positive to revenue but negative to the margin which is quite common and we had the same story a few quarters ago with North America and then it unfolded in a very nice way. So here we are at the same step. A lot of new projects coming in Suchu operation. In the same time, another area where we had also the same type of happening is our SRX operation, where we have a quite strong change of mix in those factories, which also was having a negative impact on profitability, but all in all a positive impact on revenue. So I would say this quarter was... in many ways pleasing for EPAC because those new projects that are coming in and that are building the speed and the momentum of the growth will pay back in the coming quarters. And as we have seen before for America, as we foresee already that Q4, We will see a continuous development and growth of the region but return to normality on profit level. So good development in EPAC. Central Europe also saw a positive development. We had in Central Europe a development of 57% versus last year. which was driven both by a continued good performance from acquired entity MB Elettronica in Italy but also by a strong organic growth above 8% in the quarter. which obviously was positive. I think we should remember that now Central Europe is the biggest region in Scanfield, almost 40% of the total revenue, and that quarter is a quarter that is disturbed by a vacation period. I mean all our operations in that region are between to a month of closing and therefore delivering this level of profitability and this level of growth during that quarter was a very good surprise in the sense that it means that they managed the situation and did a good work. What was also pleasing to see is that now we have gone out of the restructuring time in VUTA, we have an operation that is healthy again and that can from that new point grow and contribute to the overall group. So overall a positive picture for Central Europe but also paving the way for Q4. Because as you can imagine, to deliver this quarter with vacation period in July and August, it meant that the quarter ended at a very strong speed. Finally, closing on Northern Europe. Northern Europe was, I would say, in line with what we see on that market, a little bit slower growth, 2%. At least Aerospace and Defence is the one driving the positive momentum in the region, when other customers are more flattish. We were still having very consistent delivery when it comes to margins in the range of 6.7, which is more or less where they have been for many quarters already for the last three quarters. So continuing to deliver at a good level. below the comparable of last year, but last year it was some one-off that we mentioned at the time that bumped that quarter in the region. So I would say seven is a level that we can expect from that region. So I would say no drama, consistent delivery was the sign of this quarter and of this region that has now become the third region of Scanfield behind Central Europe, behind APAC. When it comes to our customer portfolio, we continue to rebalance the customer portfolio. I would say now the first customer is in the range of 10-11% still, when the 10 following customers are in the quarter waiting only 42%. And what it means, it means that our portfolio becomes more diverse and the 10 to 20 is significant and has a very positive development. So I think it's a It's pleasing to see that and to see how that rebalances the risk of the company. Then, energy and cleantech remain the biggest, I would say, specific customer group we have, if you consider industrial being much broader in its definition. and remain very strong, very pleased to see quarter after quarter our aerospace and defense gaining speed. It's now 11% if you look at the year-to-date performance of the company. And then MedTech and Life Science, where we also see a very positive development, but a positive development to come as well. I will get back to that a bit later. Aerospace and defense, we can see obviously a very strong momentum. We have now moved to a revenue in the quarter of 30.9 million euros, which was characteristic of both organic growth, obviously, but also the required entity. I mean, we continue to have a strong development on that segment and a strong momentum. Energy and Clean Tech had a very solid quarter, growing 14% in the quarter, which is the outcome of the project we have won. I mean, we mentioned that many times, that we were seeing development and new projects to come live during Q3 and Q4. And this is what has happened during that quarter already, where we can see that the projects we won in the past are now gaining manufacturing, beginning the stage of manufacturing. And that also, I mean, this segment has a growth that is above market average very clearly. So, in line, I would say in line with our expectations. And then finally, industrial. And industrial development was mainly supported by acquisition. Obviously, in the acquired entity, we have also industrial customers, and they are growing. The level of sales was still significant below last quarter, but still significant. But it's a customer group where the expectations of growth are slightly lower than overall. Finally, medtech and life science, where we are reaching new levels in sales, passing 46 million, and we continue to gain customer projects. This quarter it was another 11 million that came up, I mean, we have seen between 11 and 15 for quite many quarters now. That's positive. We can see that most of the customers are having a positive dynamic in that segment. The good news, however, is most of the growth is not captured yet because many of those new projects we have won in the last four or five quarters are just starting to kick in. I mean, quite a few of them were just starting to move to manufacturing during the last part of the quarter. So I will say on that one, the growth is in front of us. Thank you. I will hand over to Iiris for the financials.

Thank you, Christophe, and good morning on my behalf as well. If I start with turnover and comparable EBITDA, so our turnover increased 31.8% to 252.2 million euros. It was a strong contribution from acquisitions, 40 million euros in the quarter. and also organic growth which was 8.5 percent so 16 million positive across all of our regions and we also had a positive impact from exchange rate of 4 million mainly in our APAC region. Then comparable EBITDA increased 26.1% to 17.8 million. Margin was 7.1% compared to last year 7.4%. And as we can see, it was the largest contribution from Central Europe and also Americas, and both of them had solid margins. Then with APAC, the higher volumes kept Epita broadly stable year on year, despite their having a lower margin level. And in Northern Europe, it was a strong prior year comparison, but they have had very stable performance quarter to quarter. Then turning on to cash flow and net working capital, our operating cash flow was 10 million euros January-September and then in the third quarter 4.1 million compared to 7.4 previous year. And we have a strong revenue growth and that is increasing our working capital. Our working capital increased to 254 million. It was 180 last year, and that increase is explained by the acquisitions. And then quarter to quarter, the increase is coming from higher inventories. We have higher business volumes, receivables. We continue to focus on our working capital management and non-cash generation going forward. Then on our financial position our net debt was at 141 million at the end of the third quarter compared to 10 million last year and that increase is coming of course from the acquisition financing and then quarter to quarter some movement from working capital increases. Net Depth Epita was 1.5, so right in the middle of our corridor, 1 to 2. And we have a strong financial position, available liquidity, strong over 150 million in unused credit limits and loan facilities, so we do have financial flexibility also going forward. And then a couple of words about key figures on balance sheet and shareholder returns. Equity ratio was 41.3 last year, 55%, and net gearing 42.2 last year, 3.5, so that is showing the higher leverage as we discussed in the previous slide. and then return on equity increasing to 13.3 last year 12.7 and then earnings per share now 18 cents compared to 14 last year showing steady development. With that I think I will now hand over back to you Christophe.