Hanza AB (publ)

Thank you. A warm welcome to this presentation of Hansa's first quarter 2025. I'm Erik Stenfors, the CEO of the company and I will be glad to give you this update together with our CFO Lars Åkerblom. So as we all know we are in a turbulent period of the global economy and therefore we are pleased to present a solid report but also a clear roadmap for the future and to provide a better understanding where we are right now and where we are heading we will start with a short general overview So for many years, the traditional routes for global manufacturing have been blocked one by one for various reasons. We see some examples on this slide. And it was the pandemic who opened the eyes how fragile the global supply chains are. And now this year, with the new administration in the US, it's become even more complicated with global manufacturing. They are imposing these new tariffs and the question is then where is Hansa in all this in this new manufacturing landscape? Where are we? Well, from the start we have had our concept to have local and complete manufacturing. There's a feature of Hansa we have combined different kind of manufacturing technologies. You see some of them on this slide so we can offer both mechanics and electronics and cable harness is a good advantage for our customers. And now we're up to about 3,200 colleagues. We have 25 factories grouped into what we call manufacturing clusters. You see on this map, the five manufacturing clusters we have in Europe. And we also have in China, not a cluster, but a single unit. And that is, we call it the gateway, that is to help our customers to relocate manufacturing. to China for manufacturing in China for China and also back to Europe. Another feature of Hansa is that we have something called MIG we help our customers to rewire the supply chain to optimize it to move manufacturing and all in all this means that actually Hansa has very low exposure to trade barriers being a European manufacturer producing in Europe for Europe also We could even have a small advantage when it comes to customers who want to relocate the manufacturing. And if we look at. Also, this is our business model, but also if we look at our expansion model, we have built Hansa in steps in defined phases. We put the milestone two three years ahead with defined operational and financial targets. We have passed three milestones so far. We're heading for number four. This is important. It's called Hansa 2025. You will hear a lot about this during this presentation. And we can actually grow in three dimensions. grow with more technologies, manufacturing technologies, we can grow with more geographies and we can grow with more capacity. And this Hansa 2025 is about increasing capacity on existing geographies, existing manufacturing technologies. And what's interesting, if you look at the sales graph up to the right corner, So this is the sales for the first quarter for a five year period. In 21, we were close to half a billion second sales. Two years later, in 23, we were up to a billion second sales. And this quarter, if you include leden for the full quarter, we are over 1.5 billion second sales. So it means that our business model combined with our expansion model ensures a steady growth. under different economic conditions as has been the case for these five years in strong economy we can really help our customers to have a better solution with our all you need is one concept the different technologies and in slower economies we can help with rewiring supply chain and also building on our company So with this short introduction, I think we are ready for the progress report when it comes to operations, sustainability and finances. And we will also end with a look at the future and of course a Q&A session. If there's anything you would like to have further explained, please use that moment to ask any questions you like. The quarter. The main event of the quarter was, of course, that we closed the deal with Leden. So the deal we announced in December last year. It was a bit delayed because we had to wait for approvals from the authorities. But it's part of Hansa as of March. And what a nice quarter it has been. I've been traveling around the APA line and you see... his photo here up to the right meeting the new colleagues meeting new customers we've got very interesting new customers like Eaton if you know the energy management company and Danfoss they are into let's say smart motor controls we also got more ABB in Finland for Finland very nice and they also have a brand new facility they open in January this year in Olainen You see a picture from that factory actually from a customer meeting next to the photo of Jukka. A fantastic street metal mechanics factory. So it's been a very pleasant first quarter to get closer to this company. And okay, we could not enter the company until March, but we had a little bit of a quiet start before then. So I would say the integration is running smoothly and it should. Because we do a lot of work before an acquisition with our due diligence of the HR and the company culture. So we are on full speed with integration running very, very smoothly. We have also separated the business according to our cluster concept. So Jukka, who used to be CEO of Leden, is now cluster president for Finland. He has our old units. You see them on the map, three of them, and the units from Leden. And in Estonia, we put the Talen unit to Livarkongi, who is the president of Baltics. So this has also been a very good separation. I believe very much in this. It's clear that the people also appreciate to be part of the same geography and the same culture and the same language. In this unit that we got in Tallinn, we also got a minor part of non-core business, product owning business. It's not according to our strategy. It's a very nice business, however, running at a bit lower margin. And we are now evaluating our long-term strategy concerning this unit. We will come back to you about this later on. And talking about a very nice quarter, this was also a highlight. We opened a new factory in Töxfors, Värmland, Sweden in February. Very good day at work. Nice opening ceremony and a very nice dinner with partners and investors and customers and suppliers. Very nice. We were running before this opening because of demand. We had to use an old grocery store. This is a final assembly unit we have built. And now, because of the new building, of course, we can move the assembly to this building. It is adjacent to the sheet metal mechanics, and that's the way it should be. So when you have made a box, you should fill it with something without transportation. We can do it now. It improves our efficiency. Then also, there are a number of other projects going on in Hamza. Worth mentioning is the one in Poland, the integration of Prabuty. It's a unit. in poland we got with the acquisition a year ago the orbit one acquisition after that we've been working to streamline and optimize where to have customers and where to have different technologies this is a work ongoing and will go on It will be ready before the end of the year, but it will still take some time to finish this. It will be really good at the end. That's a large project. We also have other similar smaller projects, but all of them should then be ready by the end of this strategy ANSA 2025, according to our plan. Then also we started something we call Lynx. it's a market program what we see now we talk about the turbulence the new situation in the world it's not for the best all the time but we also see that it has brought strength to some certain market segments and we also see in germany that they are open now to change the supply chain previously they have been rather conservative at least compared to The Scandinavian countries, we have been more into outsourcing, but now this is changing. And it means that we also have a chance to take a bigger stake of the operations of the manufacturing in Germany. So these new areas to take advantage of them, we have launched a market program links. I'm sure it will show some good results already this year. And I will come back and we will present more of course when we have some results. But this is something to keep your eyes on. And with that, I will leave the floor to Lars.

Thank you, Eric. And for you, and that's been following Hansa for a while, you see that the interim report that we released today has a new format, a little bit change in the layout and in the way we present the information and figures. We hope it will be more easy to take on and more visual in how we present the development of Hansa. Starting with sustainability and the main thing happening in the beginning of 2025 was of course the release of the sustainability report for 2024 together with the annual report that was according to the European sustainability reporting standards and major step towards the CSRD. We also started the integration of Leden to be able to report the Leden figures. They are not included in the figures you see to the right and then we have in the waste one-time effect due to washing fluid that we always in the first quarter are replacing so that's a one-time effect on a little bit higher KPI on the other hand on energy juice we are having a one-time effect in the positive way we are taking away the gas consumption to adopt the scope two way of measuring the energy use. So that's how we're going to present it going forward. We see the injuries are on a stable and quite low level. And we also been working with cybersecurity and bringing more factors into Ecovodis Looking into the financials, as Erik said, we had Lea Dan joining the group in the beginning of March. We have only one month of the quarter that leden is included. On the other hand, it has a full effect on the balance sheet. So that brings the KPIs a little bit to, you need to adjust for the fact that leden, which is a quite big acquisition is done, included one month, but the full for the balance sheet. We also speak about the old Hansa comparison units and that is now together with Orbit 1 that we acquired and integrated from beginning of January 2024. The market is not that strong. We have increased the sales by 6% and that is due to the acquisition of Leaden. We actually have negative organic growth of 3% in Hansa overall. Proforma, including Lede, we are under 1.5 billion, so on a yearly base on 6 billion SEK. And we have an organic growth in the end of the quarter in the old Hansa. We continue to have sequence in increase of the margin. We reached 7.3% compared to 7.1% in Q4. And going back one year, we were on 5.3. So we continue on the development of the margin towards the 8%, which is our financial margin. financial goal. And Lea then came in the same level as what we call Hansa, a little bit above 7% in March. But of course, one month is quite short period to make any general assumptions on where Leaden is on the margin level. But it's a good start for Leaden. The EPS is increased compared to last year on 1.14 if we adjust for one-time items. And we have one-time items. Erik talked about the integration of Leaden, the new opening ceremony and the move from the old grocery store in Teksfors, and the continuous project to integrate the Orbit factory in Poland. And also we've been working with the ERP system and adjusting some values on the stock. So the one-time cost in the quarter amounted to 11 million SEK. Cash flow, we continue to have Positive cash flow, not as strong as in the end of 2024 when we saw the effect of the work we did with the working capital in Orbit 1. We are starting up and working with the working capital also in Ledon. And we strive to see a similar effect on a positive cash flow effect also when we are able to work with the working capital in Leven. On the rolling 12, the cash flow from operations is above 600 million SEK. And that also led to that net debt. of course increased with bringing on the net debt in Leden and paying for the shares in Leden. But if we deduct for those increased of the net debt, we actually decreased the net debt by 86 million SEK. The equity to asset ratio is of course decreased when we add leden, but we are still well above the financial target of 30%. We are on 34%. and also the net debt compared to the EBITDA. We said when we did the acquisition of Ledon that we might be above the financial target on 2.5, but since we have such a strong cash flow, we are now on 2.3, so below the financial target, and we expect the net debt compared to EBITDA to continue to decrease. Looking into the segments, we continue to have a stronger margin in main markets compared to other markets. We see and calendar effect in in other markets that led to that we actually decreased the margin a little bit from q4 where we saw that calendar effect we see in other markets that we actually have an organic growth of two percent and We have, on the other hand, negative organic growth in main markets. And the reason for that is the weak market in Germany that affects both the sales, but also the margin in a negative way. So we continue to see the increase in profitability and margin. And again, we are reaching and on a solid way on to the 8% or above 8% during 2025. The ownership and development of shares. We did a share issue to the sellers of Ledan of 2.9 million shares, which lead to that we have at the end of the period close to 44 million shares. The board proposed the dividends of 0.80 crowns per share compared to 120 a year ago. And that is approximately 35 million SEK. And the AGM will be held on May 13 a week from now. And we see some changes in the ownership schedule. Håkan Allén, which was the main owner, is not on the main owners list anymore. And Erik continued to increase his shareholding in Q1 and is now owning 1.4% of the shares in Hansa. And by that I lead over to you Erik and the summary.

Thank you Lars. So a very quick summary and I look for the future. We had a very strong start to an important year, and we finalized all these very important activities. We saw a sequential increase in the operating margin. For old Hamsa, we saw Lelen coming in at a very good margin. Now we will work together to increase it further. And all this, that's what makes us confident in repeating our financial goals. We also launched this new market program, Lynx. and again i keep an eye on this i'm sure it will deliver some results already this year and then we are closing up to the launch pad of hansa 2028 as soon as we are done with 25 we will start 28. So expect new operational and financial targets to come as soon as we have reached the current and most likely we will present that during a capital market date somewhere late this year. So with that we open up for questions.