Hanza AB (publ)

Thank you. Good morning and thank you for joining us. Today we are hosting this order cast from Sunny Årgäng in Sweden, where we will later this afternoon open a new factory, another important step forward for our group. But first, of course, we'll present the year end report 25. Now, this is a report that shows record results, that we've been able to execute our Hansa 2025 strategy according to plan, and also that we now enter the next phase, Hansa 2028, on a stronger position, even stronger than we originally anticipated. But let's begin then with our business model. It remains unchanged. And it's increasingly relevant. Our model is to create these manufacturing clusters. It means that we are not just offering manufacturing, but we are also offering our customers, the product-owning companies, to consolidate their suppliers. This gives a number of advantages, of course, cost-wise, but also quality and delivery accuracy. And we also see now in this world, which is clearly marked by the geopolitical uncertainty, And that there is a need for supply chain restructuring, and that's where our model have proven really strong. And. The business model is one thing, but execution is the aim of the game. We have a very clear. Execution plan we do it face by face and since start we have developed in these phases you see on this slide. Each phase has had a clear operational and financial targets. And the idea is when we enter the next phase, we should do it on a certain higher level. That's the goal of a phase. 2025 was all about balance and scale and building this robust European platform. And we will soon then launch Hansa 2028, which will be the next step on our journey. So if you then look at the agenda, We will run the normal disposition, so we will have the progress report. Lars Åkerblom, our CFO, will talk about ESG and financial development. We will have some outlook and of course the Q&A session. Please use it for any questions you like. Progress reports, the highlights of 25 actually. So this was a year, another year of structured execution. One year ago, we also, when we launched the Q424, we're also sitting here opening a factory in Töksvård. It's about 20 kilometers from Årjäng. And that has been really important, a new assembly building. And then in March, we completed our Leden acquisition. That's a company with units in Finland and Estonia. It also led to an increase in sales. When we buy companies, not only can we find cost synergies, but many times also sales synergies. And that was the case with this acquisition that led to an unexpected increase in sales and also a strain on the profitability, which we reported last year. But it was good. This acquisition came with a number of nice factories. We see one, a brand new sheet metal factory in Oulainen. a fantastic unit. And then in March, we launched our defense program Lynx, supporting the defense industry while safeguarding them the capacity for our other customers. And as a part of that, we also acquired a company called Melectria, signed the deal in July and waited for the approvals from the authorities and were able to close the deal in October. So a big part of 25 has been about establishing this dedicated defense platform. Moving on in the year. So just a couple of weeks after closing Melecta, we did a truly great acquisition. We bought the company called BMK. I would rank this as one of the or maybe the best EMS company in Europe. We've been chasing them for many years and finally we could agree. It's a company with a main unit in Augsburg. You see in the picture up to the right, the sales is about 3.3 billion SEK. And normally when you have an EMS company that size, it's scattered over many different kinds of factories. In this case, it was a main unit, which really gave advantages. In November, then we had to respond to this increased demand I mentioned. So we added a new factory of 10,000 square meters in Oläinen. So next to the one you saw in the previous picture. December, we were done with the factory that we're going to inaugurate this afternoon, the official opening today. January, we were able to close the deal with BNK, got all the approvals in time, and also we got a very nice recognition. We were awarded supplier of the year by 3M among more than 6,000 other suppliers. A really good nice proof of our operational reliability i was then allowed to go to to minnesota to receive this award and it's not because of me but the fantastic people we have in hamster but the really good validation of our execution quality and with that i will leave the floor to you large to talk about esg

Thank you, Eric. And starting with the ESG and the main activities that we have done in 2025. And of course, mainly focus on the CSRD reporting that we will do for the first time, including an audit for those figures now for 2025. Also to integrate the acquired companies, Leden, Melectria, and starting up with BMK now to involve in the ESG. And then not only in the climate, but also on all the other aspects on ESG, making sure that we have the same follow-up and ways of working with the acquired companies as we have within sort of the old Hansa. We are also focusing on cybersecurity, of course, very important, especially when we are entering into the defense sector and with the LINCS project that Erik talked about. You see the KPIs on the right, the accidents or incidents are on a stable level, going down a little bit. The waste, the increase in waste, hazard waste and energy emissions. is mainly due to um uh in it has ways that we we closed down a factory and had a one-time effect and the energy is due to lead and acquisition with which the type of of technology they have reduction they have has have a higher use of energy Looking into the figures, as I said, we have a really strong quarter that we are reporting now in a strong 2025. And I like to start with sort of the overview of where Hansa is right now and the development. We are right now on 1.8 billion second in sales. If you take that times four, you're a little bit above 7 billion second sales. And we reached a 9% margin in Q4. If we look from the performer figures that we also have as a financial target, including the the companies that we acquired during 2025 we are about 6.5 billion sec and with an 8.3% margin. And I also like to highlight what you see up to the right, the development of the profitability within what we call old Hansa excluding the acquired companies. And we see the downtime in the beginning, we bought Orbit one, we had a little bit lower margin in the beginning and then we were able to increase the profitability uh we also had an effect on the economy in in 2023 so we're really proud and and now to see that we reach close to 10 percent in uh the old hansa um without the the acquisitions and by that we can conclude that we fulfilled all the financial goals that we set for for hansa 2025 And we go into the Hansa 2026 with a really strong profitability and strong company. More details, looking into sales, we grow by 40% and organically we grow by 10% in the fourth quarter. And again, as I said, the sales in 2025 were 6 billion SEK, an increase of 24% and organic growth of 3%. And the earnings, 9%. Comparable units, close to 10%. So a quite rapid and strong increase of profitability. Financial net, a little bit higher cost compared to last year, and that is of course due to that we have a higher interest-bearing debt. Earnings per share increased to 1.65 and for the year we reached 5.38 in profitability or earnings per share. Looking into the cash flow and We continue to have a strong cash flow and what you see in the graph to the right, you can see that we have an effect when we do acquisitions. We've been able to increase or improve the working capital and a year ago in Q4, we saw the effect of the Orbit 1 acquisition and now we see an effect on the Ledon acquisition. CapEx has continued to be on a lower level compared to a couple of years ago. If we continue to have this strong organic growth, we will of course need to continue to invest and maybe increase the CapEx a little bit. We decreased the net debt if we take away the effect of the acquired companies and we are on a quite good level if we compare the net up towards the ebta we are on 1.9 we have set the financial target to not be above 2.5 so we are well above below that target and the board of directors they propose in higher dividends they propose 150 sec per share and one comment there is that in based on the on the today's number of shares that will be approximately 94 million sec in dividends but the the owners of bmco um that owns 27 of of hansa today they have an obligation to pay back the dividends as a shareholder contribution so the net dividend will then be 69 million sec which is uh probably of the net result in hansa and our dividend policy is to pay out dividends of approximately 30 percent of the net results so we are on that level that we have in in the policy um looking into to the the different segments we have main markets which is approximately on on the same level in organic growth the the growth is due to acquisitions here we have one customer in germany that uh compared to to the quarter four last year have decreased a lot in sales so if we exclude that customer and that effect we actually have an organic growth as well in in the main markets We reached 7.1% for comparable units, 7.8%. And then we go into the other markets and here we see really strong organic growth and quite substantial increase of profitability. And if we go back to what we said in Q2 and Q3, we said that increased water intake and expected to see an organic growth in Q4. And this is what we see right now. And the sectors that we've been choosing to focus on, energy, defense, and those kinds of sectors are growing. We also have a minor factor that we sold some components that increase the sales, but a strong quarter, both in both market, but especially then in other markets. And by that also the ownership structure and the biggest change in January is of course that the three owners of BMK received their shares and are now on the list of the biggest. shareholders. And I also like to highlight the fact that both Eric, the CEO and other top management have shares in Hansa 1% of Eric and in total one and a half percent of the owner belongs to the top management. And now I leave back to you Eric for the summary.

Thank you, Lars. And let's have a quick summary then. First of all, we have now created this European platform that we were aiming for. You see it illustrated to the left. Hansa is about manufacturing in Europe for Europe. We also have, so we have five clusters you see on the map here in Europe, but we also have some standalone units. We call them gateways. These are specific factories for specific customer needs, but the clusters are located then in Europe. So about 5,000 people in total, and now our original ambition for this phase was to enter Hansa 2028 at the 6.5 billion sec level. But we see now that we enter at approximately 10 billion sec, including BMK, which is then over our own expectation. And we've done this keeping the Lars explained this, that we have our financial discipline intact, really important to do this quick growth with a strong cash flow and a good strong balance sheet. We also see that the structural trends, they are supporting our direction and the links program, which is important not only for Hansa, but it's really important to support the defense and security situation is going really well. We started that in the Nordic countries and now we are expanding that in Germany. So on the March 10, we will have our capital markets day, and then we will outline how Hamsa 2028 will accelerate profitable growth from this new level. And I hope that you will be able to attend them. And with that, we are ready to take your questions.