NCAB Group AB (publ)

Welcome to the NCAB Q2 presentation for 2026. During the questions and answers session, participants are able to ask questions by dialing star 5 on their telephone keypad. Now I will hand the conference over to the CEO Peter Crook, CFO Timothy Benjamin, and Head of Investor Relations Gunala Oman. Please go ahead.

Thank you and welcome everyone to today's quarterly report. Startinging out with NCEB as a background. We are a supplier of printed circuit boards, which are the products that you see on the left here, which form the foundation in any electronic products. So our customers are typically OEM customers or EMS companies mounting electronics and creating the intelligent modules in today's modern industrial equipment. And what is unique about our business is, of course, that the PCBs are uniquely designed for the product they go into. So there are no standard components, but we provide a lot of value both in terms of engineering support as well as in the manufacturing. NCAB, we are a company with outsourced production. We have no internal manufacturing, but work with a network of factories. And our mission is to supply PCBs for demanding customers and to do this on time with zero defects and produce sustainably at the lowest total cost. And we believe very much in being local, close to the customers where we can provide the technical and quality engineering support and commercial support to our customers. We are operating in an increasingly complex world, especially in today's environment with AI putting pressure on supply chains. And our vision is to making PCBs easy, to absorb that complexity and make life easier for our customers. Beyond the factor that we are focusing on demanding customers, we are also targeting specifically the high-mix-low-volume segment of the market. So we are not active in high-volume consumer good products like mobile phones or PC markets, as an example, but typically much more in industrial applications or medical or aerospace defense applications. And typically what we see in these applications is that The PCB is a very small portion of the total bill of material, maybe only as low as 1-2%. Yet, the demands on quality are still very, very high. And for these customers, even though our customers, in many cases, are globally leading companies, Their spend on PCBs is somewhat small, and they maybe are struggling to have enough competency to manage this commodity. But also, even if they have that, they are still not having a spend significant enough to allow them to get access to the best factories and have priority there. And this is where we can add on our value by aggregating the spend of a large number of customers. And of course, having also that spend, we also have the competency to be able to provide support. And this gives us an opportunity to provide good service with competitive pricing and yet have a decent margin for the business we provide. If we look upon the global market, we can see the global market here being represented by the green bars, and 2026 is the forecasted end number for 2026. We can see how the market has, after the pandemic years or post-pandemic years in 23-24, when the market was down, has resumed growth, and this has really been driven globally by AI applications. But we can also see NCAB's ordering take curve accelerating as well in the recent times. And this is also something we can see is influencing now our second quarter. So if we move to the key takeaways in quarter two, we have a very strong growth on top line as well as on EBITDA. We can see our order intake accelerating in this market with quite significant supply chain challenges. The investments that are currently happening in data centers for AI predominantly is creating a lot of supply chain strains for PCB manufacturing globally, both in terms of manufacturing capacity, but now more and more in the ingoing constituent materials that you need, like glass fiber yarn or laminate materials. And this is both resulting in pre-buy effects as well as price increases, which is enhancing our order intake in this quarter. But beyond those two effects, there is still a good, solid, underlying double-digit growth for us. We see good progress specifically in the focused industries, like what we do for AI as well, but predominantly also in areas like medtech or aerospace and defense. But in the quarter, we overall come up with an organic order intake growth of 58% in US dollars. If we move to net sales, also here we see strong growth on the back of previous quarters of growing order intake. So our ordering net sales growth is 25% in the quarter, and we can see all regions performing well. And beyond volume demand growing up, we can also see some effects from pricing that we saw in quarter one. And I think NCAB has a strong position in this turbulent market. We have a very resilient supply chain. strong portfolio of factories where we are a priority customer and it makes us a resilient source of supply in this challenging market. We should also remember that we still have some negative impact from FX compared to prior year. And in this quarter, we had 35 million SEC of negative impact on net sales. Also, EBITDA with the growth in net sales, we see strong improvement in EBITDA versus 2025. So leveraging well this volume growth and offsetting also the negative FX headwind that we still have. And gross margins remain stable versus prior year. Also, just at the end of the quarter, we were happy to announce another acquisition. We acquired the company BoardShark PCB in the US. This is a company based in Florida. It was started in 2026, and the focus is very much on prototyping and quick turn deliveries. Their main customer base are in areas like aerospace, but also industrial and medical sectors. In 2025, their revenue was around $70 million, and they have a very good EBITDA margin, which also contributes to NCAB's performance. It's a fairly small team. It's only five employees in the company. but like also some other US companies, they're operating with an external network of regional sales reps. And they are predominantly strong for this company in the Western part of the US, which is a very good compliment to NCAB's already strong position, where our strength historically comes more from the East Coast. So this further strengthens our position on the West in the same way that our acquisition of Phase III did in 2023. And this transaction was signed and closed on June 24th. If we then take a little bit deeper look at the figures for the quarter, we can see that the order intake overall in Swedish kronor grew by 59% to 1570 million SEK versus 985 in prior year. That is a 58% organic growth in US dollar, which is the main trading currency we have. And we also have a very strong book to bill of 1.34. Net sales grew 25% to $11.68 versus $9.34 million SEC and that represents a 24% organic growth in US dollars. EBITDA grew to $138 million SEC versus $93 and represents an EBITDA margin of 11.9%. And as mentioned, the gross margin here stayed stable versus last year and also largely versus prior quarter. In the beta, we're still offsetting a negative FX impact of 10 million SEC in this quarter. So the FX impact is reducing compared to quarter one, but still represents a negative impact. Good cash flow of 116 million SEC versus 93 in prior year. Our working capital is up and we see this partly as the The lead times are somewhat longer on the supply chains, but it's actually slightly lower than what we were in quarter one. Net profit is at 84 million sec in the quarter versus 40 last year, and EPS is 0.45 versus 0.22. With that, I give the word to you, Tim.

Thanks, Peter. And here you can see our gross margins over a longer period of time. You can see we were in the low 30s back some years ago. We invested quite a bit in having a strong supply chain and a strong engineering base. We've been able to add additional value for our customers, especially in market situations like this. And that's given us a good margin at a stable level over the past few quarters, closer to 35% in a nice stable situation. If we take a look through the order intake, you heard from Peter, around 59% up and in comparable units, US dollars, 58%. That growth is comprised of approximately 20% on the pricing side, and then around 20% pre-orders for delivery in 2027. And we see that as you heard from Peter that with this market situation, the lead times are moving out. So around 20% of the orders that we took this quarter are scheduled to be delivered in 27. Net sales up 25% to 1168 and in comparable units around 24%. That gave us a book to bill of 1.34. We also saw a positive pricing impact starting to be translated through from the backlog, from the quarter one orders. And we also saw positive trends coming through in EV charging, aerospace and defense, as well as industrial sectors, which we were happy to see positivity there. When we look at the EBITDA result, around 139 million SEC compared with 94 million SEC last year. And that's despite an additional FX, a negative impact from FX of around 10 million sec. And we also had 7.3 million sec of transactional cost per board shark, which you saw represented in the North America segment of around 7.3 million sec. So despite those two things, we had a little bit of additional help from M&A as well. So we had BNB that we acquired last year, Multitech, and now BoardShark. But the biggest driver here has been strong operational leverage on the higher volumes that have come through. So that pushed us up to an EBITDA margin of 11.9 versus 10% last year. And you heard that gross margin has been stable over the past few quarters. But with that, I hand it to you, Peter.

Thank you. As mentioned, I think we have seen positive development in all of our segments. So we start by Nordics. We can see the order intake up strong by 55%. Thank you very much. representing an organic growth of 70% in Swedish kronor or 21% in US dollars. And we continue to see the resurgence of the EV charger business that was low for some time during 24-25, but that is coming back and growing nicely. We also see the continued growth in defense plus general industry developing positively. EBITDA amounted to 42 million SEK over 23 last year, and the EBITDA margin up to 15.2% versus 10.7%, which is maybe more in line of our historical performance in the Nordic segment. Contribution from Multi-Technique, of course, helped to drive the EBITDA improvement, but there's also, as mentioned by Tim in general, a strong leverage on the net sales growth that helps drive the margin development. If you start looking at Europe segment, Also here, strong organic or strong order intake growth by 58% up to 750 million SEC over 475. Organic growth of 51% in SEC and 57 in US dollars. Only small contribution from BNB makes a difference as they came in during quarter two in last year. So we see the order intake again driven by pricing, pre-ordering, but also the continued demand, growing demand from industrial customers. All markets here are strong. We only have a few exceptions. I think Italy, where we have quite a bit of exposure to automotive pass car, where there is a more muted performance still. Net sales grew by some 22% to 536 over 440. Organically here, 17% in SEC and 21% in US dollars. and we continue to see the strong development in most of the European markets and notably Germany for us is doing quite well. EBITDA increased to around 60 million SEC over 33.6 and EBITDA margin grew from 7.6 to 11.1 and we have some negative FX in the quarter but it's being offset by the leverage of growth and also the contribution from BNB. Moving to North America, also here we continue to see strong order intake growth of 56% to 294, over 189 last year. Growth 59% in US dollars supported by some orders with extending into 2027. And we continue to see strong development in defense. Here we have the approval of CMMC2, recently for the cybersecurity, which is a mandatory requirement specifically for defense in the US, and that is helping us now to win more business in the US. We also see continued business within power solutions, where we also in earlier quarter had significant projects for some data center applications. Net sales are up 24% to 278 over 225, and it's a growth of 30% in US dollars. And here we have had deliveries of a number of larger projects helping to drive the growth in the revenue side. And we also see strong development in the vast prototyping business that we have in North America. EBITDA came down to 26.3 million over 32, but this, of course, is mainly driven by the fact that we have the transaction cost of 7.3 for board shock. Without that, the EBITDA margin would have been 12.2, which is still slightly down from last year, but in par or slightly better than Q1. And then finally over to East, where we have seen maybe the strongest development on top line, with order intake increasing 102% to 124 million over 61. Order intake growth in US dollars, 111%. And we are capitalizing very much on the market growth in high tech. Our team here is very much focused on niche applications where we are providing a lot of engineering support. And we can also see that major parts of customer base that have been trying to buy direct historically in China, given that that is the main source also of supply. They are struggling to get access and they're valuing the access through manufacturing capacity from NCAB. And this is helping us to grow our business in China, notably. Net sales are up 40% to 76 million SEC over 54. It represents a net sales increase by 46% in US dollars. EBITDA grew to 15.1 million over 9.5. and represents a margin of 19.8% versus 17.5%. And here it's really the rapid growth in net sales that creates the strong EBITDA leverage for the business in our East segment. Over to you, Jim.

Thanks, Peter. So I think you can see here that our return on equity is developing favorably with 18.9% during the quarter compared with 13.5% in prior year, driven very much by a healthy EBITDA development. The net debt to IBRA is at 1.9 versus 1.8 last year, which is below our financial targets. And that is also considering the fact that we did pay out a dividend during the quarter, as well as acquiring BoardShark. Equity to asset ratio at 35.8, considering around 40.7 last year. And then working capital up to 443 or 10.3% compared with 353 or 9.2% prior year. And part of that does come from us buffering the situation for our customers a little bit and making it a bit easier for them and adjusting to the market climate. Available liquidity a little bit over a billion versus 1.2 billion last year, but very much in a good situation with additional dry powder for additional lemonade. If we look at the pipeline, a bit over 300 identified companies. I think if you've been following us for a while now, you're a bit familiar with our criteria. If you look at the past few acquisitions that we've done over the past years, including B&B, Multitech, Ford Shark, all without own production, all profitable companies. And that's the type of company we continue to look for. Short list of around 50 target companies and good conversations ongoing. And we're happy now to have our first of the year out with Borshark. All three of these acquisitions we think at a very good timing in the market. And then if we look at the integration process, there's a lot of advantages for a company to come into the NCAB family. There's opportunities to improve and learn and grow in marketing, sales, people and culture, IT operations. And it's also an opportunity for us to learn from them. Each one of the companies that we acquire, we try to learn from. They tend to make us a little bit better globally. And they get to choose a little bit together with us which one of these synergies makes them more successful. And they get to choose those ones first. And that's how we move along. Over to you, Peter.

Yeah, so summing up again, we are a specialist company and we remain 100% focused on pretty circuit boards. Overall, the global market this year is predicted to be around 100 billion US dollars and What we are focusing on in high-mix low-volume represents maybe around 30% of that, so the worldwide market of around US$30 billion. So even though we are a clear leader, we still have a lot of market to target. So we do not have plans to extend into other product areas, but remain 100% focused on the PCBs. And we also want to continue with this asset-like model of not having in-house production, but instead leveraging a strong portfolio of partner factories to always be flexible and adaptable to have the right offering for our customers. We are still, however, investing a lot in the whole manufacturing process. We have a strong factory management team. We are also investing in technology and system support to help us provide even better service for our customers and build stronger relationships to further increase market shares in the market where we operate. We are continuously also looking to expand geographically to cover new markets or areas of new markets. And we believe that M&A is a very good method of doing this. We are very much, you say we are supplying products, but we're very much a service organization and building those customer relationships take time. And even more so if you're entering a completely new market. So M&A is a very good vehicle of establishing a foothold and then from there growing our shares in that market. And we also see still in Europe and North America especially, there are a lot of smaller, medium-sized regional players, trading companies, where we see an opportunity to consolidate this market. Many of these companies lack the kind of the muscle that NCAB has in terms of its factory management, supply base organization and its work on sustainability, etc. We can help these companies take the next step for the future. And as many of the companies were formed and started some 20, 30 years ago, there are many of these companies that are also coming up with the success and change. And here is a good opportunity for those companies to transition their ownership into NCAB and give both the company, their customers and the employees a nice future development for the future. And with that, I think we wrap up our presentation and we'll open up for questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Jacob Edler from Danske Bank. Please go ahead.

Hi, Peter, Tim, and thank you for taking my questions, and congrats on another strong quarter. I have a couple of questions, starting a bit on the order intake side and starting with pricing. Pricing was 20% up year-over-year in the orders here in Q2. However, if I look at external data, it seems that spot prices are running even higher heading into Q3 here. Do you agree with that statement? And how do you view the price development here?

I mean, that's a fair assumption, Jacob. Because, I mean, what we've seen is, of course, this has been a gradual process starting maybe some of the discussions already end of last year. and during quarter one. So in quarter one, we had price increases in say north of 10%, and now maybe we are north of 20%. And I think that has been a gradual implementation. So it's a fair assumption to say that the prices are higher now at the end of quarter two than what they were at the beginning of quarter two, for instance. And looking ahead, I mean, I think it's always hard to predict Very clear. And kind of touching a bit on that, I mean, as you explained now, but also in the report, you know, the capacity constraints are tougher than ever.

And I believe the last component crisis we had back in 21, that cycle kind of lasted for one and a half years in terms of sustained order intake growth. Based on what you can see right now, do you think that this cycle will be more prolonged, so to speak?

It is, of course, challenging to predict, but I mean, right now, what has been the main driver of this cycle has been the investments in AI. And then that, of course, has created shortages, which in its turn has created more of pre-buy, which actually amplifies the strange supply chains. But if we look at the current rate and the projected near or mid-term investments in AI, there is no real relief from the AI side in the investments. And their investments, as predicted at least, look to outpace the pace by which the industry can ramp up its capacity. So right now, it's hard to predict, but we don't right now see when things would kind of turn around.

Clear. Good. And then we just have two questions on North America. I mean, in Q1, you were talking about these bigger orders that you quantified of 20 million US dollars, which was partially towards these research centers, which may become once a year, but then you also had these, you know, auxiliary energy systems towards data centers. You mentioned energy here in North America segments, but were the magnitude of the data center orders a bit smaller here in Q2 and can we expect larger orders in H2 or how should we view that commentary here in Q2?

I think it's fair to say that. I mean, as you said, in quarter one, we had a little bit of an extraordinary assembly of those orders coming in kind of all at once. So, yes, we have had continued orders for these kind of power auxiliary supplies also here in quarter two. And I think we expect to have more opportunities going forward. If we will have that they will kind of converge in a single quarter like they did in quarter one, that's a little bit hard to judge. I think if you actually look upon our order intake numbers for quarter two, you then actually in the year-over-year comparison, then we actually were lacking one part of those kind of science orders that we then last year had in quarter two, but this year came out in quarter one. So, yeah.

Yeah, good. And then also quite exciting to see that you started to receive defense orders on the back of the CMMC 2.0 certification that you got approved for. And I guess, you know, can we expect these orders to kind of continue for the remainder of the year? And are you able to kind of quantify, you know, the magnitude within the North America segment, which is connected to defense or give any color there?

I don't think we're breaking out exactly defense for North America. I think defense for the group in 25 was around 6%. but that was predominantly then North America and Nordics. And I think this is also some general development that on the one hand, we are cementing our position in North America and hopefully extending through our commitment with the CMMC2 investment. But also we can see that the work that we initiated a few years ago to extend our sales to aerospace and defense in Europe is starting to bear fruit. We're also winning more new orders and projects in continental Europe, which is also positive for the future.

Very clear. Last question from my side before I hop into the line. But I think, you know, the gross margin guidance you've had for a couple of quarters has been 35% to 36%. And you delivered right above the low end in this quarter, which I thought was, you know, quite strong given how fast prices are moving in the market. So do you think you'll be able to kind of sustain this low end of the guidance here ahead given the market dynamics? Or how should we view it?

I mean, it is our aim that we will be able to sort of manage the cost increases to our customers in a way that we are also preserving our gross margin. So that, I guess, is our ambition to still stay with that kind of guidance we've given before to be in that range, 35%, 36%.

Very clear. Thank you so much for your answers. Thank you.

The next question comes from Gustav Bernebled from Nordia. Please go ahead.

Yes good morning it's Gustav here from Nord-EM. I thought maybe just to start off with something you write here in the report regarding you know you say that deliveries for current orders are now material into 2027 so just to just a clarifying question that if I were to place an order today is it you know will I get delivery first mid-2027 or is it still possible to sort of place orders today and get delivery within 2026?

I think you can still get orders into 2026, but it is increasingly, say, it depends a little bit on which technology, etc., but you can still get orders in 2026. So it's not that it's completely closed, but we also see that, especially on the pre-ordering side, we have seen orders extending where they have visibility that stretches beyond customers are placing those orders as well. So a lot of the pre-ordering is materially pushing into next year.

And shorter delivery times also require slightly higher prices in some places because capacity utilization is so high in many of the factories that can do that.

That's very clear, thanks. And just given, I mean, given the order book you have to get today, you have quite good visibility here into H2. How confident are you in seeing sales volumes increase year-over-year here in H2, given the supply chain constraints?

I mean, right now, you have to, of course, take out the pre-buy side of things from our order intake. But I think generally we are keeping up quite well with our customers' demand increases. So we don't see, at least for the near term, major risks to our supplier opportunities. So I think we are pretty confident about how we can develop. But I think what we can see is, of course, and this is something for... Maybe for those who will be with us in 2021-2022 to see that, yes, when we have this significant order intake and with levels of pre-buy, the revenue will climb slower than what the order intake is going to do. You will not see the kind of 1,500 plus in order intake materialize in near-term revenue. It kind of gets more prolonged in its growth.

And maybe to add on to that, I mean, if you look at where the orders were originating for these different quarters, the orders for quarter three were originating largely in quarter one when the supply chain issues were not as severe as they are now. So the bigger risk in the two quarters is really more in quarter four, where we typically have a seasonality pattern in December as well, which leads into quarter one. So I would say it's more of a thing in quarter four than it is in quarter three.

That's very clear. And just on the price increases filtering through, just to help us with our estimates as well, should we expect a gradual increase in the price increases reaching roughly 20% by mid-2027 or is that a good reference point to see the 20% coming through?

Yeah, I mean, it's probably pretty fair. I mean, we talked about it in quarter one where we said, I mean, the price increase we're seeing in quarter one would predominantly be visible in the second half of the year. We've seen some positive contribution from the pricing on the net sales also in Q2, but I think we'll see the full effect of Q1 price increases will really materialize in, say, in quarter three. And likewise now, the price increase we're seeing now will be towards the end of this year and into 27. on the net sales effect.

Perfect. Yeah, that's clear. And just two small questions here on costs before I get back in line as well. Just in terms of the transaction costs that we are seeing here, just if you can elaborate a bit on why they were so large in relation to the acquisition. I mean, if we compare to the previous acquisitions, it's a quite large difference.

And then also on

on if there were any costs related to the Business Development Conference that you usually have here every second year in Q2.

Yeah, I can say that the transactional costs for BoardShark were primarily related to doing business and setting up the acquisition in the right way in the US, which is a bit more of a complicated jurisdiction, especially on the legal side. What we could see is that it was a bit more comparable to the last large acquisition that we did in the US rather than smaller, more simple acquisitions in Europe. So that's a little bit where that came from. And yeah, we did have some costs from the conference that we had in quarter two, but not a material effect of the quarter, all in all.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad.

The next question comes from Johnny Jin from Seb. Please go ahead.

Good morning Peter and Timothy. I have a couple of questions as well. I want to follow up a little bit on the pre-buy and especially tying that to your higher prices now as it sounds like prices are still climbing. So how do you reflect that sort of in the pre-buys? Do you charge a premium on those longer pre-buy orders to reflect the pricing risk or how does that work?

I think it's a mixture, and I think this is where the market is probably moving, given the fact that the market is not easing up. I think the willingness to make committed long-out pre-buys with fixed pricing is challenging. So in some cases, you could say that the pricing is built in there, but we are also facing a situation where we may be subject and we've informed our customers as well that we may be subject to what is called kind of dynamic pricing. meaning that the PCB manufacturer, if there is a pre-buy order with deliveries six months out, they, of course, do not have six months of raw material in stock. And they only right now have a pricing indication, but the raw material prices are more set on a kind of spot market currently. So there may be even, say, price adjustments to longer orders going forward.

Understood. Then just one quick follow-up on previous questions here. I mean, you flagged longer lead times very clearly, but I mean, order conversion is still very good. It seems like very healthy if you look at both this quarter and on year-to-date. So I assume it sounds like price effect was minor on the sales side in this quarter. So as you convert these higher prices, Yeah, starting in the second half of this year. And I mean, you also mentioned the supply chains are very, very tight now. So your value is also getting higher to customers. So yeah, is it fair, just to clarify, is it fair to assume that the growth margin could start to climb towards the upper end of 35 to 36% range ahead? Or can you maybe clarify that?

We don't give forward guidance on that sort of thing, but suffice to say we're not expecting immediate margin accretion. We're just trying to keep up with the market itself and what's going on in the supply chain dynamics.

I think we're also very much focusing on the customer relationships we have in terms of doing our best to protect our customers and, of course, Of course, getting compensated for the cost increase that we see, but at the same time, not profiteering, but really building the long-term business with our customers.

Okay, understood. And then just a quick one on cash flow. I mean, you grow very fast now, but I mean, going forward, as you say, supply chain is very, very tight and Do you see sort of a behavior that suppliers might ask for more upfront payment or such that could impact your working capital in the short term? Or how do you mitigate that? What do you see there?

I mean, it's a good question, Johnny, and I think we are seeing that happening, or at least we can see that as a potential issue that, say, especially for factories to be able to get raw material that they may need to pay upfront. Or just from the fact that, say, that prices are going up on raw material, it means that, say, our manufacturers, they will hit the credit limits of their raw material suppliers. and then may need to pay upfront to get anything beyond their credit limit. So in some cases, we may need to go in and support that to secure material. I think it's an opportunity and a strength we have, but it's also something where we're also in dialogue with our customers to get our customers to support that in order for us to secure material for them. So there may be some impact on our working capital going forward, but I think we can also largely offset that also from customers.

And it may not be something that some of our smaller competitors have the ability to do in the same way that we can.

Understood. That's clear. Then I have just one final one, one quick question. I mean, some companies are receiving some terrorist refunds now in the US. Is that something that you expect as well going forward or

I mean, this is a process that is progressing. So I think, yes, we may see some procedural tariffs coming back. Then again, in some cases, we'll also be there based on, say, post-hour deducted costs that we've had in association with this. There will be part of that flowing back to our customers as well. So we don't see that as a major impact on our numbers going forward.

Understood. Thank you. That was all for me, and have a great summer, Peter. Thank you very much, Johnny.

There are no more phone questions at this time, so I hand the conference back to the speakers for any written questions and closing comments.

Thank you very much. There are some questions here. We have one from Philbert Vessier. He says congrats for the result and he has two questions. First, could you disclose the share of your revenue or order intake that is directly or indirectly related to AI infrastructure investment?

I think it's not something we have reported, but I mean, what we do, we report those activities. They are predominantly related to power solutions. And I think in 2025, we reported power being around 9%, which then includes also our EV charging business. So it was in 2025, maybe a business that is potentially sub 5% of our turnover. I think we have seen continuous growth. We already had some of those projects in in the second half of 25 notably, but it's still, it's not a major part of our overall revenue.

Thanks, Peter. And the second question was, where do you see PCB prices going for H2 and 2027? Any capacity addition ongoing that may ease this crunch?

And I think as we say here, I think it's very hard to predict where the PCB prices will move in the second half. I think based though on the fact that there has been a gradual growth of the prices, We are ending quarter two with higher price than where we were entering. So that of course will be reflected in the H2 numbers. We know that there are capacity extensions happening in terms of increasing the availability of raw materials for the PCB industry, but that is still sort of takes quite a while for that to grow and it's still lagging behind the pace at which AI investments are growing. So right now we cannot say when those additions may have an impact on easing the crunch.

Okay. Thank you, Peter. So I just want to remind you our Q3 report is on October 23rd. And we sent out earlier this morning a save the date for Capital Markets Day, which we will hold on 19th of November. It's both in our offices and hybrids. So very welcome back. And thank you, Peter and Tim, for today and all of you for listening in. Thank you.

Thank you very much.