Hanza AB (publ)

on the clear way towards the financial targets for 2028. We see a sales growth of 70%. We have an organic growth of 9%, slightly lower than the 20% we had in Q1, but it is a little bit seasonal, but it's still a strong organic growth. Eric talked about the shortage of components. We do not see more than a minor effect on the sales in Q2. So the 9% in organic growth is not depending on the increased prices on components. We have an operating margin for the comparable units of 9.2%. 3% compared to seven a year ago. As Eric mentioned, we have BMK on seven and a half percent, a couple of percentage points or two percentage points higher than in Q1 and in line with what they had in 2025. And here we expect the margin to continue to increase quarter by quarter. We have, as an effect on the Horizon project, and in order to increase the profitability over time, we have taken one-time cost. We have reduced employees, mainly in BMK, and we have decided to wind down the operations in China and also done an MBO operation or decided on an MBO in Finland. And this will, as Erik also mentioned, be approximately 160 employees that will be reduced within the group and approximately 160 million SEK in sales that will be reduced when these actions are done in the end of the year. And this leads to that the group's adjusted operational margin is on a stable level on 8.5%, 7% a year ago. And when we see the comparable units of 9.3% and we compare it to the 9.7% in Q1, I'd like to remind you that Ledan is now part of of the comparable units for the full quarter. It was only one month out of three in Q1. So that's one of the reasons for the slightly reduction in profitability margin for comparable units. Erik spoke about the cash conversion and the financial discipline. And we can this quarter also report A strong balance sheet and a strong cash flow, 273 million SEC in operational cash flow, net debt compared to EBITDA on 1.4, and a quite good cash position of 773 million SEC, and equity to assets ratio, which is also strong, 45%. And this... is important, and we have said this many times, that having a strong balance sheet gives us the possibility to continue to invest, to expand, and also what we announced last week, do acquisitions like the Forteco carve-out deal, and without increasing the number of shares, we can do this with our own financial resources and new credits. Looking into the segments, and we see the segments in main markets and other markets, they are fluctuating depending on the type of products, the customer, what customers are increasing and decreasing. But we also see strong, stable development of both these segments and remember that we will adjust the reporting into the new organization of regions starting from the beginning of 2027. We have main markets being more or less on the same net sales level as in Q1 and a stable margin on 8.5% and for comparable units really strong margin of 9.7% segment. Other markets slightly down from Q1, but still on a stable margin, 8.5%, and for comparable units, 8.9%. Looking into the acquisition that we announced last week of the SELECTED FACTORIES FROM FORTECO. WE WILL PAY INITIALLY ON THE ENTERPRISE VALUE OF 144 MILLION EUROES. IT'S NET DEBT FREE WITH NORMALIZED WORKING CAPITAL, THIS 144 MILLION EUROES. AND THAT IS approximately eight times the rolling 12 months EBTA that we pay on the initial consideration. There is an additional purchase price capped to 56 million euros. So the total payment for this acquisition is 200 million euros. And it's based on organic growth. in sales in 2026 and 2027. So we will pay in two tranches in the beginning of 2027 and the beginning of 2028. Both the initial payment and the earn out will be paid with existing funds and the credit facilities. There are no financial conditions and the closing expected to be, I would guess, early in Q4. And it's subject to normal regulatory approvals and also approval from certain Forteco financial stakeholders. And this is how to our first half year would look if we make and perform and include the Fortico factories. We would increase from 5.2 billion to approximately 6.2 billion. So quite big company and well on the way to the 14th billion SEK that we have as financial target for Hansa 2028. The Fortaco factories we expect to, as a start, deliver on approximately 9% on EBITDA margin. We expect this to have a positive contribution on the EPS from the beginning, from the acquisition. and we will integrate this as we normally do into the Hansa cluster model and expect to increase the margin not only in the acquired companies but also in total Hansa. And the effect on the Hansa balance sheet and cash flow, we expect the net debt to continue to be below our financial target of 2.5 times the EBTA. We expect the equity to asset ratio to still be above our financial target of 30%. And just to remind you, the Hansa 20... 28 targets, net sales of 14 billion SEK, an EBTA or margin of at least 9%, and equity to assets ratio of 30%, and again, net debt to EBTA of maximum 2.5%. Looking into the shareholding structure, no major changes from end of Q1. What we have seen in Q2 is that both Erik, the chairman Francesco Francia and the board member Lars-Ola Lundqvist have increased their holding in Q2. And by that I leave back to you Erik.

Thank you Lars and let me conclude by bringing the different parts together. Q2, we delivered 9% organic growth, 9.3% operating margin in comparable units, and 273 million SEK in cash flow operations. PMK improved its margin, and we see an increased order intake, also secured the important first defense and security orders. Horizon will improve efficiency in our manufacturing processes. platform and Fortaco acquisition will strengthen the technologies. And if there are three things to remember from today, and I think it was interesting with Lars pointed out that we will still have a strong financial situation after this large acquisition. So it's really good. So if there are three things to remember, I would say that we are growing with equality that creates financial freedom. and we're using that freedom to put ANSA 2028 into action. And with that, we are happy to take your questions.

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