I-Tech AB

It is early afternoon and we continue to dive deeper into today's reports release. And now we shift our focus towards iTech, who during this morning published their report for the first quarter of 2026. And standing next to me is Marcus Jansson, who is the company's CEO. Welcome. Thank you very much, Mike. Great to be back. It is good to have you back. So you will give us a short presentation and then I'll return to ask a few questions.

Indeed. So firstly then, for those of you who are experiencing or meeting iTech for the first time, just a brief introduction before we jump into the numbers and sort of the outlook going forward. So the space that iTech is operating in is today a marine transport. So our sort of innovation space, you could say, is this statement here. What if one third of the global fleet of 110 commercial vessels were using 36% more fuel than needed, even just for one day. What would that actually mean for operating costs and emissions? And the fact of the matter is, it is this bad, right? This is actually our data when in docking ships coming in after five years of service. They are using too much fuel. And it's the effect really of biofouling on the ship's hulls. So essentially, you know, when a ship is submerged under water, organisms start to grow on the ship hull. And in the beginning, it's typically slime. Later on, there could be weed and also then different hard fouling species like barnacles, for instance. and this significantly increases ships fuel consumption and of course that is impacting you could say operating costs but also then in elevating so the emissions of of co2 and ghg gases and so really having good biofouling control is an important topic and that's then where itech and our product selectop comes in right and we help the the ship owners and ship operators to reduce their emissions to air We help to predict marine ecosystems because biofouling on ship's hulls is actually seen today or viewed as the number one source for transfer of invasive aquatic species. And we need to protect our sensitive coastal environments. And lastly, what is also important is that we want to reduce the emissions to the sea, to the oceans. And here also Selecto presents a very sort of great innovation in terms of how much chemicals are actually emitted to the ocean. So briefly on iTech today then. We believe we have a very scalable business with plenty of additional potential. So we have a unique technology and we possess sort of intellectual property in terms of patents, but also you could say know-how in terms of formulations and coding developments, etc. We are an asset-light company, so our production is outsourced. So the company today mainly focuses on sales and marketing and innovation. In terms of market penetration, then we estimate that Select Hope is today present on around 3,500 ships out of a global fleet and of around 110,000 commercial vessels, as we said in the beginning. So plenty of room for continuous growth. And this is the development that iTech has had since the IPO back in 2018. So a really solid growth journey, and we see that also is continuing for now, right? So without further ado, then let's dive into the Q1 results. And hereby, I will hand over to our CFO and Head of Operations, Magnus Henell.

Hello everyone. Yes, it's nice to be here again and it's also nice to be here presenting a good result. And before Markus continues to discuss the outlook further on, I will dig in a little bit through the numbers. as you as marcus said before we have had quite interesting growth from ipo until 2025 with a small hiccup during 2025 with some lower volumes and as you can see on this graph up here three out of four quarters during 2025 was actually Significantly lower or at par with the previous quarters the year before. So it's really good now to see that we can come back with actually a growth both in terms of volume and in terms of currency adjusted revenues. We are losing 7% on the top line in Swedish krona, but that is mainly the exchange rate. Well, it's in fact only exchange rate. Sorry. And the growth and the base that we are working on with our customers, it is solid. Amongst our largest customers, we have a very solid base and we have significant growth with the smaller ones. And as we discussed last year, we had one customer that took significantly lower volumes than the year before. They are now back on a more normal level for this quarter, which then means, as I said before, on the top line, we lose 7%, but we gain equally much in Swedish krona on the gross margin. because that is also significantly improved. And that is the main effect of the gross margin is the continuous work with our producers, but also the customer mix. It's a little bit more of the more higher revenue customers for this quarter than for the previous ones, which then coming back, coming down to the sort of the more main profit EBITDA and EBIT, we are strengthening them. a little bit, one million up on the EBIT level, significantly on the margin level. We are going from 35% to 39% for this quarter. So very good quarter financially. What we can point out is actually what you see in front of you as well, that the operating cash flow is significantly lower than last year. One main effect is that now When we used all our tax benefits, we're actually starting to pay the taxes. So the main effect here is that we had almost 10 million in a tax payment effect from previous year coming into this year. So it's a little bit more normalized cash flow. But on the other hand, also, we had quite much more revenue coming from Korea, which I will talk about. The next slide where we have a little bit longer payment terms with our distributor there than we have in the rest of the world. So that is also one effect for the cash flow this quarter. And coming into the geographical spread, you can see that Korea's share has increased quite significantly. It's both due to the second largest customer, but also to our main customer, CNP, who has also higher sales in Korea than previous quarter last year. The other regions are a little bit lower in terms of volume, but I would say that there's mainly a distribution in time effect over the year. It's been a positive development also for these regions, but I think Korea is really sticking out on this quarter. And now we also look into the small highlights, if you say so, from the financial part. Of course, the growth. Being back on a growth path again is really wonderful to stand here and present for you. The diversification amongst our customers is also very interesting, that we are continuing to diversify the customer base and with the strong sales in Korea and, of course, our margins. We should have high margins. We're having high margins and hopefully we can continue to have high margins. On the grass margin, Marcus will come back to some issues that might soften that a little bit in the coming periods. But in general, it's been a very nice development for the quarter. So then I'm leaving over for Marcus again to take on the outlook.