Smartoptics Group As

Good morning and welcome to Smart Optics Financial presentation, financial report for Q2 2026. It's great to be here. It's fantastic times for us. I hope also for you guys. Most of you should now be enjoying some sunshine. I hope you are. And thank you very much for taking the time to spend some time with us this morning. Next slide please Not only are we delivering a quarter in which I expect us to grow faster than anyone else in the market, but we are also We have also started our journey towards the next goals for smart optics for the next big things that we have ahead and and thus we want to spend a little bit of time in this presentation in this call to talk about that to introduce our thinking around the future for the company but as usual let's turn to the main happenings in the quarter and I will leave the details of the numbers with very few exceptions to Stefan's part where he will cover those in great detail in in a few minutes. We can only conclude that we're continuing to have a fantastic America's fantastic USA stellar performance by Team USA but since a few quarters we have been discussing an increased momentum and increased traction particularly around large accounts in Europe and this quarter we're seeing the result of that so also A fantastic Europe with growth in all sub-regions and fantastic growth in UK Ireland and the Nordics in particular. Our business is increasingly driven by AI and indirect hyperscaler business. And as an example, this is now happening across the globe. So it's in every region we are working with these type of opportunities. As an example, our South African partner, TransmissionCo, together with us, are building a network for a hyperscaler in Africa in the quarter. So important momentum there. We can also see that the traction from Q1 is continuing with book to bill comfortably over one in the quarter. Exactly the same scenario as in Q1. Gross margin is a little bit down in the quarter. This is related to one project, one customer in the quarter, where we can see that the difference between the lower gross margin in the quarter and a perfectly normal quarter that we've been delivering recently, all of the difference there between the two numbers is related to this case. So this is a case that has been restored, that will be restored in Q3 and onwards from a margin perspective where we are choosing to support our customer in a critical phase where we were undergoing qualification for a number of large applications. And this is a U.S. Tier 2 that is building networks across America. So a very good win and a very good proof point of our large account strategy that is resulting in short-term, a little bit lower GM. We have been talking about this for years, that we want to have the flexibility and need to have the flexibility to act In the best interest of the company and in particular our growth journey when we need to and that's the full story behind it. So no big drama around the gross margin from my perspective. Quite expected in fact. And yes, so obviously we are here in in Stockholm today from our new super nice Main office location and production and so on and so forth As you all know we were talking in Q1 about Q2 being a catch-up quarter Of course catching up towards a normal Q2 performance Versus Q1 and we can see that we are Way up there in the upper range of what what normal seasonality is So so a very good performance and in particular bearing in mind that We delivered about 11% of the revenue in the first month of the quarter. So the company was effectively shut down from a delivery standpoint for a few weeks and the team has performed really really well so thank you very much team operations for your efforts through the quarter so reminding everyone what have we done well we have moved all of our production facilities the two of them into one and going forward the work to make this even more efficient is going to start and continue for four years but clearly we're demonstrating in the last two months of the quarter that our capability is already at at the very high level right so revenue and the geographical spread as I said fantastic performance in in America and there is no doubt it's a record quarter over there. Largely driven by the results of our efforts in the large account strategy over the past several years. We can see now that large parts of our revenue, still being fairly broad, but large parts of it is now coming from The accounts that we have been talking about typically regional tier twos and tier twos and and similar both data center operators and and network provide network operators Delivering bandwidth to to the data centers In the region so very good America Percent growth Quite expected That we would see a good MEA After several quarters of having Very good Traction and very good win rate In the larger Projects that have been out there For tender and similar So All good And as I mentioned earlier Good growth in all sub-regions Dachis in Europe, Southern Europe But stellar performance in the Nordics and UK Ireland APAC is still project dependent as we point out in the headline here and we can see quite modest growth in APAC however what we are seeing in this region much like the other ones is that the larger data center AI related projects are popping up in several regions within the APAC territory and we have developed our partner landscape in the region we have of course developed our product to have a better fit going forward and we have invested in the region with more people working for and with smart optics so I'm very positive about APAC for 2027 and the second half of 2026. Timing is, of course, a little bit uncertain, but I think that we can see a much better performance from the APAC region going forward. So that's very nice to have yet another contributor to our growth. Product Mix As usual, it is the more advanced products that is sold together with our software and service offering that is leading the way. Those of you who have been with us for quite some time probably noticed that we have Shuffled around the order in this slide So and we have done that to clearly outline the fact that solutions software and service belong together nearly to 100% and So fantastic growth. This is important because It's telling us that where we are investing and we are also achieving growth So that's always comforting. It is a proof point that our product roadmap, the products we have developed are the right products for the market. The regions and customers and applications that we're going after are the regions and customers and applications where we can see growth. So very, very good proof points. As you all remember, we have since some time also put a little bit more focus on our business area optical devices with Bjorn Andersson leading those activities for us since quite some time now. We have been engaged in really upping the performance of the back end of that business Investing into our software platforms, investing into our production tools, investing into the tools that our customers are using to configure these products for their live environments. And we're seeing that much like the previous two quarters, very good growth in business area devices too. So it's no longer an anchor for the company anymore. It is yet another growth vehicle contributing to the overall revenue.

So I'm very pleased with that situation.

I will hand over to Stefan to take you through some of the details on the financials.