Sandvik AB (publ)

A warm welcome to Sandvik's presentation of the second quarter results 2026. My name is Louise Cheder, Head of Investor Relations here at Sandvik. And beside me, I have our CEO Stefan Widing and CFO Cecilia Felton. We will, as usual, start with the presentation. Stefan and Cecilia will take you through the highlights of the quarter. And after that, we go on to the Q&A session. So without further ado, over to you, Stefan.

Thank you, Louise, and welcome also from my side to the second quarter report presentation. To summarize the quarter, it was a very strong quarter with record revenues and profits. We see strong momentum across key regions and segments, as well as also good price realization, which is, of course, very important in the current environment. Total order intake grew by 17%, and organically we grew by 17% as well. Total revenues increased by 24%, but organically 23%. Adjusted EBITDA came in at 8.3 billion, up from 5.6 in the prior year period. This corresponds to a margin of 22.6%, up from 19%, and rolling 12-month EBITDA margin is now 20.4%. Adjusted profit for the period, 5.8 billion, up from 3.7, and the free operating cash flow came in at 3.6, corresponding to a cash conversion of 46%. This is on the lower side, but it's driven, of course, by our significantly higher invoicing, and we'll go through the components of that a little bit more throughout the presentation. We'll start with highlighting the acquisition we announced in the quarter, which is very strategic for us, the filter press manufacturer DiEM filtration, which is based in Italy. This means that we are entering a new market segment in mining, filtration and dewatering, and this will also form the base for a new filtration division within rock processing. We have said for a number of years that we have a strategy to grow in attractive niches in downstreams mining. We started three years ago with the acquisition of Schenk to complement our crushers with screens. And this is now these next steps we're taking as we also now go then into filtration and dewatering. This is a very attractive business. Besides the structural growth in mining, filtration is growing even faster. This business market that they are in is growing around 15% per year, driven also by regulatory trends where mine operations want to de-risk the tailing dams and also to get the permits to operate the mine. They increasingly move to filter presses instead. And you need large filter presses for this.

And in this segment, the infiltration is the market leader. They have a total addressable market of 20 billion in their core offering. If we add also adjacent