Hanza AB (publ)

Welcome to Hansa Q1 Report 2026 presentation. During the Q&A session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to the speaker's CEO and President Eric Stenfers and CFO Lars Akerblom. Please go ahead.

Thank you. Good morning and welcome to our presentation of Hansa's Q1 2026 results. This is Erik Stenfors, CEO and founder of Hansa. With me, as usual, is our CFO, Lars Åkerblom. This morning we released Q1, our strongest quarter to date. We see organic growth, high margins and a strong cash flow. But still, this should not come as a surprise. If we view this in context, it's rather a confirmation of a consistent execution of a solid business model. that's the key message today and to explain this properly we have an agenda which follows a clear logic we will start with the hansa concept because that's where everything begins then we show how this model was executed in q1 next how this execution translates into financial performance and finally how we will move forward And of course, we'll wrap up with a Q&A session. Please use this to ask any questions you may have. Hansa. Hansa was founded, like all companies, on to solve a challenge. In our case, to solve a challenge in the manufacturing industry complexity. And why? Because contract manufacturing is fragmented. You see it on this slide. There are too many suppliers, too many interfaces and across far too many locations. And this complexity creates costs, delays and risk, and also it makes it difficult to scale. Therefore, we started the company with the vision manufacturing made easier. The idea is to remove complexity from our customer supply chain. And when you do that, when you reduce the complexity, instead you unlock efficiency and scalability. So that's our vision. And if you look at our business model, under the slogan, all you need is one. One partner, full responsibility, less complexity. So in Hansa, we have combined multiple manufacturing technologies in one company. And that's how we are able to provide a better way to structure our customer's supply chain. So then when it comes to execution, I can tell you we have never believed in shortcuts. Instead, we have built Hansa with a long-term perspective. And since the start, now we turn 18 this year, we started in August 2008, we have developed a company step by step, face by face, each phase adding new capabilities. And this is important because the strong concept, it drives growth. But the structured execution, it also drives margin and cash flow. And this quarter, we also launched the next phase, which is Hansa 2028. And in short, our plan is to keep our current geography, but we're going to expand our manufacturing technologies, all with the idea to further increase customer value. If you want to get a deeper understanding and view of this, please visit our website. There you can see the full capital market base presentation, and you can also hear a lot of the good reps from Hansa tell you more about this. But the main idea is then to work with the manufacturing technologies. That's what you're going to see in Hansa moving forward. Let's now have a look at Q1. It contains several highlights. Firstly, so of course, in connection with the launch of Hansa 2028, we had a look at our financial targets and the board of directors decided to raise them. So in 2028, sales should reach at least 14 billion SEK and an operating margin of at least 9%. You can find a more detailed description of the goals on our website. But of course, we have been able to fulfill our previous goals, so we intend to do it this time as well. Secondly, we completed the BPMK acquisition. This fantastic company you see up in the right corner, we are now in the integration phase, it's proceeding according to plan and that should be expected. Acquisitions are one of Hansa's core competences, so identifying the right companies, integrating them systematically and improving performance. And actually the real work you do before the acquisition, we always do a full HR due diligence. So we check the company culture. And if you do that pre-work, then the integration will run smoothly. And also it's really good. I've been spending time there. I've been acting manager director for this company actually also, and spending a lot of time with the customers. It's really, really nice. We get a great customer feedback. And not only that, we are increasing the order intake already. And you have seen that from previous acquisitions that the company inside Hansa many times offers, gives a wider offer and that increases the order intake. And that's also very important because order intake today is revenue tomorrow. And then to the real highlight of the beginning of 26, we got two supplier of the year awards and from very important companies and customers 3M and Saab. And this is of course very good external validation of our model and our execution. I had the pleasure to visit Saab in April in Gothenburg and 3M earlier this year on a very memorable trip to Minneapolis. And then finally expansion in Sweden. At the last call we talked about that we're just about to inaugurate a new factory in Sweden and this shows how with an increased capacity to meet customer demand and we also are ready to do tailor-made solution in this case among other things we support Siemens Energy with the manufacturing solutions that we see on this picture in the middle reps from Hansa and Siemens and also our defense minister Paul Jonsson who was attending the inauguration and of course really glad for that. It is important with factories in Sweden, we need to increase our capacity, we have moved too much out of Sweden. But to sum up, first quarter had several highlights, but it's not about isolated events, rather it is about this consistent execution in line with our business plan. And now for something new. For the first time, we are presenting our customer segments. We launched them at this CMD earlier this year. And here you will see our customer segments illustrated by the development in the first quarter. And these segments also, they also show the focus areas of Hamsa. So they are quite important. You see that demand also is not concentrated, is diversified across segments in a way that gives a good foundation for growth. And if you go through them one by one, we saw electrification, energy systems. So strong demand driven by power generation, power distribution, of course, the data centers are booming. Defense security. this is uh and here we have to separate a bit because in old hansa before bmk we were running about 10 on defense we have solving power for customers for example in bmk it was zero so they have not been used to working with the defense industry now we have launched a program we have a program called lynx a special program for the defense industry we have applied that also in bmk we have already secured the first orders from the defense industry we have a very high hope that this will be a big part of the BMK portfolio as well. Heavy equipment, then we see mining, for instance, doing really well and we have a positive order intake. Number four and five, they should be separated like this, that we are talking about industrial products, but in number four, it's primarily standalone equipment, whereas in item five, we talk about integrated systems. So that's the split. In number four, just a stable demand. In number five, we had a really strong activity from some automation and material handling systems. So that was a strong segment in Q1. Okay, so that's what we saw in terms of demand in the first quarter. And with that, I will hand it over to you, Lars.

Thank you, Erik. And I will start with sustainability and the main activities in Q1. And of course the main activity was the CSRD report, the first time that it was also audited. And integration of BMK um into the sustainability work and that is the not only the climate part it's also how we work with ethics security and mainly most important how we work with our personnel And to the right, you can see the KPIs that we believe are the most important for our business. And you can see that they are slightly down on energy use and hazard waste. and that is due to the acquisition also of bmk um that that will reduce the energy use and hazard waste going forward actually a bmk is not part of this yet so we see a decrease in in the sort of world business and then the accidents are on the on the on the same level as before. So no major changes there. Of course, we want them to decrease even more. Looking into the financials, we see that we have doubled the net sales in Hansa in Q1 compared to Q1 a year ago. and with an organic growth of 20% leading to also operating margin for old Hansa for comparable units of 9.7% compared to 7.3 a year ago. So we see this trend of increased profitability operating margin to continue. BMK, we said that the acquisition that they are on 7.3% in operating margin, and that's also what they came in with in Q1. And we see expect BMK to increase the margin over time. as we have seen with the previous acquisition that we integrate them. And then after like a year or so, we definitely see a higher margin in the acquired companies. And for the group, including BMK, we came to an operating margin of 8.6%. And I also wanted to reflect on the old Hansa and the previous financial goals we had that we finalized in 2025 of 6.5 billion with an 8% margin. We are now in Q1 having a sales of 1.8. That's approximately 7.3 on running 12 months. period with the margin of 9.7%. So we are definitely well above the financial targets that we are just ending. And looking into the balance sheet and the cash flow, we had a fantastic strong cash flow from operation of over 400 million SEC. And that is driven by this profitability, but also that we've been able to reduce the working capital. It was reduced with 176 million SEC compared to actually an increase in the Q1 last year of 14 million SEC. So that has a big impact on the cash flow and this also leads to that our net depth in correlation with the EBITDA and that is EBITDA including BMK for the time that we have not been part of the Hansa group of 1.4 and remember that we have not the financial goal but what we said is that this kpi should not be higher than 2.5 so here we have quite good headroom for um continue to invest and also do acquisition with the balance sheet as the base for for the financing uh we also see that the earnings per share increased in q1 compared to 0.9 a year ago and 1.6 in Q4. What is positive is also that we see that the acquisition of BMK and BMK running at 7.3% is contributing to the increased earnings per share. if we look into the to the segments or the the and remember that we have will change the reporting into the two regions starting from q1 next year and the reason for not starting already now is that both bnk and melectria are special projects during 2026 and will be included in the rest of the operation and into these three regions, north, central and east, and starting to report this from Q1. But we see main markets have an organic growth of 11% and an EBIT margin of 8.3% and for comparable units, 9.4%. And this is where the main markets has been running for quite a while now in this good margins. We see segment other markets have a really strong organic growth, 34%, and that is approximately where we were in Q4, a little bit lower in Q4, but it's... also showing a good profitability margin of 9.5% for comparable units, 10.7%. And that is a continuous increase of the margin that we have seen for the last, I would say more or less two years, we have seen this segment increasing the margin. But also, maybe most important is to look into the total and the fact that we have 20% organic growth. It is the total that is important and where the growth comes, that will change over time. So don't focus too much on the different segments. The main focus is on the total. Looking into the shareholding, the big change in Q1 is of course that we acquired BNK with shares. So we have the three sellers Knöfele, Bauer and Miller being included in the shareholder list now. We also see that the main owner the largest shareholder and the chairman and the CEO, they actually increased their ownership in Q1. And by that, I leave it over to you, Erik, and the summary. Thank you, Lars.