Teqnion AB (publ)

Hello, everyone. Welcome to Technion 2025 Q2 Q&A, the start of our large montada. Thank you, everyone, for taking your time from your busy schedules and vacation to read our quarterly report that was released this Saturday and for joining us in this call today. We will, as always, alternate between the questions that were sent in to qa.technion.se and the ones that we get live here in the Q&A function. Before we start the actual Q&A session, I would like to hand it over to you, Johan, for a quick overview of the quarter.

Yes, thank you. Hello, everyone, and welcome to our office here in Solna, out of Stockholm. And Q2 Q&A for 2025. This is my friend Daniel, who works with acquisitions and is the deputy CEO of Technion. My name is Johan Stianne. I'm the CEO of the company group. since 2009. Talking a little bit about the first half of the year, we see that the market is rather slow. It's been difficult to generate orders and we need to work harder to get sales. This is in the process of doing a lot of changes on the organization level and how we measure ourselves within the group. We are on on the road to doing something that will be the new technion we have the uh the group has grown quite a bit we have uh as we talked to you about in going out to 2024 we had a lot of acquisitions on the way in we have finalized those we have seven new companies in the group now which is fantastic we're strengthening our uh our position in the UK with five new acquisitions there, and we have two more in Sweden, which is really fun. It was several years since we acquired something in Sweden when we have two great companies here. The operational earnings as presented in the quarterly report is weak. We are very dissatisfied with that. Compared to 2024, we see that it's more or less flat. I pointed out that you should disregard the positive effects of the earnouts. And if you compare that to the positive effect of the earnings in 2024, you see that the operational underlying earnings is more or less flat, which is not fun. Still, maybe not as bad as you can read. We have, as mentioned in the report as well, reached a level or plateau in Technio now where we need to reorganize how we operate. And we have done that during the spring. by adjusting how we measure the subsidiaries and how active we are when it comes to supporting them. I mean, the key for us as a group is, of course, to keep the subsidiaries autonomous. They should have all the decisions made out there up to the point where they show a trend which is not good enough or is trending downwards. Then we know early on now that they are in need of support and we will demand from them to turn that trend around. much more quickly than we have done previously. And one way of doing this is that we introduced a new type of role, so to speak. We have called our co-workers that work closely with subsidiaries before CEO coaches. We still have a few of those, but now we will introduce regional managers and now we have a UK manager responsible for making sure that the UK companies or the international subsidiaries perform on the right level and are trending in the right direction. And he's now based, he's been with us for a little bit over a month. Everything looks really, really well. To just put some words on what that is, it's more of a super CEO coach, maybe, that follow up more closely on the metrics and make sure that we implement actions as soon as we see the trends turning in the wrong direction or is flattening out. So a new way of working, not introducing a new level of organization, but more of one point of responsibility and a more heavy skill sets in that type of individuals. We will probably, not probably, we will introduce the similar role in Sweden, hopefully during the fall or in the winter. We have a plan for that and we see that the UK will stand as an example on how we should organize ourselves now that we reach this level of volume. We have, maybe I'm repeating myself, but that is what it is. I have, as also explained, a frustration over that things take time. We have implemented quite a lot of changes and a few new colleagues over the last six months and we see that the things that we have done and that we are continuously doing is changing to the better our performance. Of course, it's frustrating when you see that the underlying performance of the operations is generating better orders, less costs and all of that, but it hasn't filtered through into the real numbers yet. I'm trying to I'm trying not to be a negative person, but maybe that's my personality, but right now I'm actually feeling a great deal of hope going into the fall. All the things that's been implemented and are being implemented is actually showing that if you work harder and more effectively, it actually gives effect. It's always a surprise in a rather strange way to many people, but if you actually do a lot of things, that will give you some effect. And I see that now, unfortunately, it's frustrating that it hasn't filtered through into the numbers. But that's maybe how I would reflect on the last quarter and the last six months.

All right. Let's jump into the questions then. The first email we got from regarding the Q&A is from David, who is wondering which businesses have exposure to the US, what level exposure and what is the impact of tariffs?