Mycronic AB (publ)

Hello and welcome to the presentation of Micronix Q1 report. My name is Sven Četković, I'm the Director of Investor Relations at Micronix and with me today I have Micronix CEO Anders Lindqvist and CFO Pierre Bruchon who will be presenting today. And with that I hand over to Anders, please go ahead and present Micronix Q1 report.

Thank you, Sven. And hello, everyone. Welcome. So today, of course, we'll talk about the quarter one result and then go a little bit deeper in the different divisions of the development is. Pierre Brochon will explain more about the financials. We will have a few words on sustainability and we will end with the question and answer session today. And as always, you will find in the material on the website also the market update in that part, which we will not present today. So talking about the first quarter, 2026. So first of all, we need to keep in mind that also the quarter one of last year was a very strong quarter. So we compare this quarter to an already very good quarter. But despite that, we have a strong increase on almost every row. So order intake up 23% to a little bit more than two and a half billion. Very strong and a very strong contribution from global technologies who see that when we go into the division. Also net sales following debt, almost as much, 17% up, almost up to an equal number of 2.5 billion. We've had increases from all divisions. And also a record high EBIT of quite close to a billion, 938 million. So, of course, a very strong margin of 37%. strong backlog of 4.7 billion and also during the quarter have completed two acquisitions it is dead and Cove and DST and I will talk more about those when we talk about the divisions so looking on the on the different divisions starting with pattern generators so here we closed the acquisition of Cove and DST which is a company in South Korea The acquisition was announced quite some time ago, but... We had a quite long process to receive regulatory approval from the Korean authorities. This is a strategic investment and also strategic business in South Korea. Cohen will contribute to the Tatian Nature's product portfolio, both with products that are adding to the portfolio, but also with knowledge and new capabilities that we didn't have before. So super exciting to be able to develop that business now. On the business side, very strong sales because we delivered the most expensive machine that we have ever built, a P8000, precision 8000 Evo. Was delivered in the quarter, so the sales increased 8% up to 1.3 million, more or less. Order intake close to 600 million, which is not really a bad number, but we had a very strong quarter. for last year of close to a billion. So that was down 38%. On the order index side, we got one PlayStation 8 Evo, one SLX and one MMX. So very strong gross margin, 77, extremely strong EBIT, 831 and backlog of 1.9. And in this backlog, we have 14 systems. Also notable is that after the quarter, we received a very special order for a customized SLX mask right there. That is quite customized, which you can see on the price tag. The normal price of an SLX is between $4 and $10 million. And this one was sold in a range between $27 and $30 million. And it's not a product that we will be able to sell more of. So this is a one-off event, but still a very good order. PCB assembly solutions. Stay here with struggle. We have done that for a while. So the continued. We have a continued weak market almost everywhere. We have a strong headwind in the European market in the first quarter. Also in the U.S. market was quite weak in the quarter. And we can see that there's a lot of hesitation around customers to hold orders until then they have received a firm orders commission from their customers. So this is creating quite a lot of delay on the investment side. So order intake 287 million, which is 3% down and sales 318 million, which is a little bit up, but still not very strong. Gross margin stable at 37 and EBIT at 8. So very minor EBIT and then the order backlog of 116, which is also quite a low backlog. So you can see that we struggle in this division. On the high volume side, we see a very strong market demand both in the Chinese domestic market and also from outside of China. And especially to be noted is the aerospace industry in North America which is very strong at the moment. We also have reached a milestone with the new factory that we have built in Thailand where we have the first machines both assembled and delivered. So we are able to make made in Thailand, not made in China, which is a positive thing in this geopolitical situation that we are in right now. And very strong order intake, 737 E, which is 33% up on already strong comparative number. Sales up 24% to 400, stable gross margin at 42, and EBIT at close to 40. On the EBIT, we have an impact of this employee share ownership program of minus 24 as well, included in the number. And order backlog, a little bit more than a billion. So very strong development in the high volume division. And then we come to global technologies where we had a super strong demand. I can talk first about the acquisition that we have made, which is a company called EZZ. This will not add much to the sales because this is a supplier that we have had for many years. And so this is a strategic acquisition where we reinforce and safeguard our supply chain. You can see that we have a super strong order intake, 260% up for the division, and up to 915 million. And the two business lines that are contributing most to that is the PCB test, and the ETC company is the supplier to PCB test. very large backlog, very good momentum on the orders and good situation on that one. The other strong business line is dibonding. On this one, we also have a good increase. Both these demands are very much driven by AI driven demand that we have applications that goes into AI product through product through AI and drives the investment in this area. You can see that if you had a sales of 492 million, The contribution from the recently made acquisitions is 77 million, so a little bit effect from that side as well. Gross margin, strong, 49%, and EBIT start to move now with the increased sales up to 199, no, 119 million. And we have a little bit noise from acquisitions, both positive and negative, so we had Some acquisition effect on the recently acquired businesses of minus five. And we had the re-evaluation of consideration related to the purchase price of Vanguard Automation, which was positive 22 million. So a little bit plus or minus in that one. And a super strong backlog of 1.7 billion. So very good situation here. And EBIT margin of 24% as well. I think it's very, very happy with that. So the strong order intake and our view on the market has made us to revise our outlook for 2026. So the previous outlook was 8.25 billion in sales at the end of the year. And now we see that we will have sales in the neighborhood or in the area of 8.75 billion. So quite a good change on that one as well. So... With that, I will hand over to Per Brosan to talk a little bit more about the financials.

Good morning from my side as well. I'm happy to stand here and have a good quarter with us and presenting that. First of all, looking at this graph, you see the strong sales level that we have had. We have been above 2 billion a couple of times, but not in the neighborhood of 2.5 billion, which also happens to be a quarter of our long-term financial target. And this quarter, we hit that in revenues, and we also hit it on the orders received side. Off-the-market revenue contributing with 525 million, which is a good level, and in volume actually higher than the number we had a year ago. But given that we also have a bit of headwind with the exchange rates, we were just below the level of last year. A record EBIT margin at 37%, reflecting that this sales also had a positive mix between the various businesses that we have, with a strong sales in particular in patent generators, as Anders explained. If we look how this looks on a rolling 12-month basis, we hit 8.3 billion in the quarter, which was just above the mark we had in our previous outlook for the year. But we have now revised that one to 8.75 as Anders just mentioned. The EDIT margin is on a good level at 25%. And we are closing in on the 2 billion in our aftermarket, which is a key focus area for us to continue to grow this one. And we are growing it in volume, but numbers take a little bit of time with the headwind we see on the FX side at the moment. If we cut our total profit and loss statement by cost category, you can see that we moved the EBIT from 7.75 to 9.38. And this was largely driven by a higher volume in the quarter than what we had last year, keeping more or less the same gross margin overall, which is a high level for us. On the R&D side, we continue to spend in particular on pattern generators. So about half of this increase is attributable to pattern generators. And for the rest, it's mainly related to the newly acquired companies in combination with some ESOP costs and some increased spend in the high volume division. On the marketing and sales and G&A side, it's also largely related to that we have added businesses to our baseline. On other, we had a very negative impact of revaluation of FX last year. So this year is slightly positive, and this supports then the delta, as well as the about 25 million that we had to reverse for the earn-out liability in the Vanguard case. Ending on a 938, 37%, extremely good level. If we cut it the other way around, you can see that we had, despite the very strong Q1 last year in patent generators, we had an increase, 80 million almost. We also managed to improve the situation for PCB assembly solutions. This is a small profit generated in the quarter, so we are continuously working to get that up to a higher level, but we also know that we start the year relatively slow, typically in PCB assembly solutions. High volume, you see a minus 20 here. And I would say that this is not really displaying the performance of the division. We have in these numbers 24 million of costs for the ESOP program. And we also had fantastic ordering take in the first quarter. So with a little bit delay on the revenue side, yes. But really good performance there. On the global technology side, very solid profit improvement. And this is stemming from the business lines which we have been owning for some time. So the business lines PCB test and the business line die bonding. This has been fueled by the demand in AI infrastructure investments, and it's really doing well at the moment. The group function side, this is revaluation of cash and internal loans to a degree, and the cost base is more or less similar as before. Ending the quarter on 938, so 37%. Cash flow wise, of course, the result contributed very well in the quarter. And similar to last year, we had negative impact on the working capital. And here we can sometimes contribute from large orders in pattern generators with advances, which we did not have to a very high degree. And at the same time, with strong invoicing, we also had a buildup of the trade receivables. On the investing side, the highlights for the quarter was the acquisitions of ETZ and Coen DSC, which accounted for two-thirds of that. Still, we remain in a strong cash situation. And on top of this, as many of you who follow us well know, we also have 2 billion revolving credit facilities at hand, should we need to. And with that quick overview, I hand the word back to Anders to speak a bit about sustainability.