Nolato B — Call Transcript 2026

Hello, and welcome to today's presentation with Nolato, who is going to present the report for the fourth quarter of 2025. With us here to present today is CEO Christer Wahlquist, and CFO Per-Ola Holmström. After the presentation, there will be a Q&A, so if you're calling in and want to ask a question, please press star nine to raise your hand, and then star six to unmute yourself when handed the word. You can also send in questions via the form to the right. And with that said, I hand over the word to you guys. Thank you, and welcome to the presentation of Nolato's fourth quarter of 2025. Starting on page two, we had sales, the total just shy of SEK 2.3 billion in the quarter, which gives a growth of approximately 2% adjusted for currency. We saw an increased growth rate for the Medical Solutions business area at 5%. We saw a decrease of approximately 1% for Engineered Solutions, adjusted for currency. We had some headwinds on the sales in the last part of the quarter due to Christmas holidays and during that time. Our operating profit ended up at SEK 236 million, in comparison to 240. This was strongly affected by currency headwinds of 6%. The margin rose to 10.4%, so we saw improved margins in both areas, but sequentially lower due to somewhat weaker volumes during the Christmas break, and also some startup costs for the new programs in United States. If we focus on the full year of 2025, we ended up at close to SEK 9.5 billion in sales. That was corresponding to a 2% increase, adjusted for currency. We saw an operating profit increase 11%, even though we had a strong currency headwind. The margin improved and ended up at 11.3%, corresponding to 9.9%. So we saw a full point, 1.4 percentage points increase on margin. The earnings per share ended up at 2.88 SEK per share, and we have a very strong financial position, enabling us to execute on our increased acquisition strategy. The dividend proposal is 1.7 SEK, in comparison to 1.5 SEK per share, and that's a current payout ratio of 59% in comparison to 61% last year. If we jump to page 5, starting with Medical Solutions, here we are on the growth and global expansion journey, and this business area now corresponds to 58% of group sales in the fourth quarter. On page 6, we see our focused product areas. We feel that we are very well positioned with leading global customers and positioned in very interesting product areas. If we go through them a little quickly, we see the In Vitro Diagnostics with the long-term growth potential, and we have a very strong position in this, therapeutic area. Cardiology, of course, high-end market, a lot of lifetime implants and very high demands on the products, delivered. Drug Delivery, a growth market area, where we have a very strong position, and well-positioned for continuous growth. , it's a changing market. It's Endoscopy and General Surgery interesting with the new sort of more robotic surgery that are coming in. Continence Care, of course, high volume market with, huge volumes. If we then jump into the fourth quarter for medical solutions, we ended up just above SEK 1.3 billion in sales, which corresponds to a 5% adjusted currency growth. We see that the drug delivery market continued to exhibit growth within the auto-injector and pen injector systems. We saw a positive development for the in vitro diagnostic during the year, with a slow start last year, and then increasing volumes. If we look on the margin side, we ended up at 11.6% margin for the business area. That is an improvement of 0.4 percentage points compared to 2024. We had, during the quarter, a negative impact due to temporary higher cost for the startups, as mentioned before, and also some volume headwinds during the Christmas breaks. Our expansions are going according to plan, both in Hungary, Poland, and Malaysia. Jumping into Engineered Solutions, which is a sales level of close to SEK 1 billion and 42% of group sales in the fourth quarter. In this area, we are focusing on the different product areas, of course, the Consumer Electronics, where we see potentials. Hygiene, good potentials, and Automotive, of course, a little bit slow right now, as we explained in previous quarters. As a little bit different market, the Materials, where we see strong growth, but also affected during this quarter by the increased cost of precious materials. Jumping to the next page, and then summarizing Engineered Solutions for the fourth quarter. As mentioned, strong growth for Materials, 10% increase if we adjust for the currency. We saw sustained performance for Consumer Electronics, particularly in Asia. After a positive performance during the year, volumes decreased for Hygiene in the last quarter due to an inventory adjustments ahead of year-end. The total business area ended up at the margin of 9.9 in comparison to 9.2. We saw, of course, favorable product mix, but if we compare to the previous quarters of 2025, we had negative impact of the lower volumes and sharply increased precious metal prices, as mentioned. Good afternoon. Per-Ola Holmström, CFO, and group financial highlights on page 11. Net sales was 2,272 million SEK in the quarter, a 2% growth, given currency headwinds of 7%. Operating profit, EBITDA, amounted to 236 million SEK, slightly below last year, but with currency headwinds of 6%, representing an accelerating negative effect of about 14 million SEK in the fourth quarter. The EBITDA margin for the full year 2025 improved by 1.4 percentage points, driven by pricing, cost adjustments, and efforts in the entire supply chain. The quarter improved 0.3 percentage points to 10.4%. The declined margin compared to previous quarters, 2025, was negatively affected by, one, temporarily higher cost for startup of the new products in the US. The Medical margin was negatively affected by that, by 0.5 percentage points. Two, slightly lower volumes within mainly Engineered due to holidays at year-end. Three, sharply increased prices for precious metals within materials in business area Engineered. Summarizing these two effects for Engineered, the total negative effect is 1.0 percentage points for the business area. Four, group cost was on the high side in Q4, and in comparison to Q3, that had one-offs of +7 million SEK in addition. Effects from M&A activities in Q4, giving a delta of 10 million SEK compared to Q3. Summarizing these four items, the temporary negative effect is in the range of 25-30 million SEK compared to Q3. Parts of these will influence the first quarter 2026, as well. Cash flow from operating activities was SEK 310 million, a good level in the quarter, but last year was very positive from improved working capital. Net investments, we did see a shift in trends. CapEx declined compared to the comparative quarter last year to SEK 146 million. The full year 2026 is expected to be between SEK 650 million-SEK 700 million, where one hundred approximately still is left for the Hungarian project. Return on capital employed for the full year improved to 14.2%. Turning to page thirteen, no, sorry, jumping, turning to page twelve, sorry. Sustainable development. We have had a very positive development of our all kinds of measurements on the sustainable side. If we focus first on our Scope 1 and 2 emission, we have reduced this by 96% in absolute terms from our base year 2025 versus our target of 70% for 2020. So it's an impressive journey on that side. If we talk about Scope 3, upstream emissions, we have reduced that by 30% in absolute terms from the same base year versus our target of 25. So we are well ahead of our near-term targets on path towards 2030. We're also delivering fast result on our science-based target initiatives, and our net zero targets for 2045 is approved by Science Based Targets initiative in January of this year. Turning to page 13, focusing on our current situation. Overall, we see very favorable financial position that enables intensified M&A agenda. And focusing on Medical Solutions, we have a continuous growth strategy. We see very high market activity. We have a very strong, broad customer base, with long-standing close customer relationships, enabling us to continue our growth journey. Our establishments of operation in Malaysia and an expansion in Poland and as well as in Hungary, are creating excellent opportunities for us. Within the Engineered Solutions business area, we are advancing our market positions. We have established position in new product areas, and successful in new products and technology areas, mainly data center, is very positive for materials. Also the expansion of our operations in Malaysia, creating opportunities. We are now handing over for questions. Thank you so much for the presentation, Gentleman. As you mentioned, we'll now carry on with some questions. So if you're calling in and want to ask a question, press star nine to raise your hand and then star six to unmute yourself when handed the word. The first caller here is Carl Ragnerstam from Nordea. You have the word. Hi. Hi, it's Carl here from Nordea. Sorry for a slow unmuting. A couple of questions here. It is, of course, a lot of dynamics in this report, so I hope to unpack some of them. You mentioned 100 basis points in Engineered owing to shutdowns, as well as the precious material thing. So firstly, I wonder, what materials are we talking about? And secondly, yeah, how do you view that topic specifically for Q1 and Q2? Yeah, we could say that the pricing we are talking about, that is affecting materials. As you know, we are compounding a material which is including metal particles. Some of these materials within that part is based on silver particles. As you have seen, pricing of that has skyrocketed during the fourth quarter, and it has continued in the beginning of January as well. That is a part where we have a quite short actions to change the pricing to our customers, and we are, of course, in the process of doing that. It's more standard materials which we are handling, and that will give effect. But of course, there is a timing effect, and as you have seen, pricing have continued up in the beginning of January as well, however, now declining. So we are in the middle of a very dynamic pricing because of the silver materials, mainly. So that is affecting that part. And what portion of the 100 basis points was the metal or material thing compared to the customer order shutdowns? That is, the larger part of the 1%. What did you say about Q1? Is it same effect or less effect or ballpark? Yeah, we do see that that will continue in Q1 as well, but, it's slowing down a bit, during the end of the quarter. That is our assumption, based on pricing activities that we have done. Then, of course, we don't know, the ongoing, pricing dynamics, for the silver pricing going forward. But as far as we can see right now, there will be, an effect which is slowing down during the rest of the quarter. Now, that's very clear. Jumping into Medical, you mentioned the production ramp-up in the US, the 50 basis points impact. How long is that ramp, and is it a multi-product facility, or what are you ramping? It's a multi things. There are different programs ramping at the same time, and we are expecting that to continue a little bit into the first quarter, and then, of course, be more steady state. Good. And the final question, if I may, is on the Medical organic growth. Did the new auto-injector contract that you're manufacturing in Hungary contribute with a similar magnitude as in Q3? And if so, what is the main delta behind the acceleration of the organic growth in Medical? ... It's continuing, the new program in Hungary is continuing on the same level as in the third quarter, and it also expected to continue on the same level in the first quarter of 2026. So that's... Then, it's a general thing. We have a growth in different areas, all kinds, all over the place, more or less. Okay. Oh, oh, sorry, final one. In terms of the M&A cost you touched upon, it seems a little bit, it is a little bit on the high side, given your history of doing due diligence. Is it fair to assume that it's a bigger transaction, or is it several small ones you're looking into? Well, yeah, I mean, the delta of SEK 10 million is coming from seven from the one-time positive effect in Q3, and then the rest is mainly coming from these activities. So, well- Okay. Yeah. Fair enough. Large or not large- Okay ... but, yeah. Nothing- I understand that. Extra large. Very good. Thank you. All for me. Thank you. Thank you so much for the questions. The next caller here is Oscar Rönnkvist from SEB. You have the word. Hello. Hello, sorry, wasn't able to mute myself. So, yeah, I just had one question on the volumes. So, assuming that there were, you know, earlier shutdowns in Q4, do you expect to see a catch-up effect in Q1, or is it more of a normalized quarter? I think we would see the first quarter as a more normalized quarter. All right. I see. And then just on the start-up costs there in the US, any particular reason why you sort of highlight that as a temporary cost? I suppose that, I mean, you're looking to expand most of the time. Yeah, it was just an explanation to... that we have several things running, and it was more than normal. All right. I see. And then, just, I think a follow-up on Carl's question before, but just a clarification on the pricing adjustments in materials, in specific. So how would you handle the dynamics of price increases when we have so volatile precious metal prices? Yes, it's a continuous... Of course, if you have an upward trend, it's something that then you have to adjust and do it the right timing. And, it's always a dynamic process, and you can't really go back to a customer every day. So then you might lose some temporarily on the upgoing if it's a continuous upward trend. All right. But have you done any price increases thus far, based on, you know, the higher material prices that we saw in, especially in Q4? Yes. We have. All right. Perfect. That was all. Thanks. Thank you. Thank you. And just a final shout-out here, if somebody want to ask a question, please press star nine to raise your hand. We'll give you a couple seconds here to see if anyone else want to ask a question. It seems that that was all the questions we had. So thank you so much, Nolato, for presenting here today, and thank you all for tuning in. I wish you a pleasant day. Thank you.

Speaker 3: Hello, and welcome to today's presentation with Nolato, who is going to present the report for the fourth quarter of 2025. With us here to present today is CEO Christer Wahlquist, and CFO Per-Ola Holmström. After the presentation, there will be a Q&A, so if you're calling in and want to ask a question, please press star nine to raise your hand, and then star six to unmute yourself when handed the word. You can also send in questions via the form to the right. And with that said, I hand over the word to you guys. Hello, and welcome to today's presentation with Nolato, who is going to present the report for the fourth quarter of 2025. hello and welcome to today's presentation with nolato who is going to present the report for the fourth quarter of 2025 With us here to present today is CEO Christer Wahlquist, and CFO Per-Ola Holmström. with us here to present today is ceo christer wahlquist and cfo per-ola holmström After the presentation, there will be a Q&A, so if you're calling in and want to ask a question, please press star nine to raise your hand, and then star six to unmute yourself when handed the word. after the presentation there will be a q&a so if you're calling in and want to ask a question please press star nine to raise your hand and then star six to unmute yourself when handed the word You can also send in questions via the form to the right. you can also send in questions via the form to the right And with that said, I hand over the word to you guys. and with that said i hand over the word to you guys

Speaker 2: Thank you, and welcome to the presentation of Nolato's fourth quarter of 2025. Starting on page two, we had sales, the total just shy of SEK 2.3 billion in the quarter, which gives a growth of approximately 2% adjusted for currency. We saw an increased growth rate for the Medical Solutions business area at 5%. We saw a decrease of approximately 1% for Engineered Solutions, adjusted for currency. We had some headwinds on the sales in the last part of the quarter due to Christmas holidays and during that time. Our operating profit ended up at SEK 236 million, in comparison to 240. This was strongly affected by currency headwinds of 6%. Thank you, and welcome to the presentation of Nolato's fourth quarter of 2025. thank you and welcome to the presentation of nolato's fourth quarter of 2025 Starting on page two, we had sales, the total just shy of SEK 2.3 billion in the quarter, which gives a growth of approximately 2% adjusted for currency. starting on page two we had sales the total just shy of sek 2.3 billion in the quarter which gives a growth of approximately 2% adjusted for currency We saw an increased growth rate for the Medical Solutions business area at 5%. we saw an increased growth rate for the medical solutions business area at 5% We saw a decrease of approximately 1% for Engineered Solutions, adjusted for currency. we saw a decrease of approximately 1% for engineered solutions adjusted for currency We had some headwinds on the sales in the last part of the quarter due to Christmas holidays and during that time. we had some headwinds on the sales in the last part of the quarter due to christmas holidays and during that time Our operating profit ended up at SEK 236 million, in comparison to 240. our operating profit ended up at sek 236 million in comparison to 240 This was strongly affected by currency headwinds of 6%. this was strongly affected by currency headwinds of 6% The margin rose to 10.4%, so we saw improved margins in both areas, but sequentially lower due to somewhat weaker volumes during the Christmas break, and also some startup costs for the new programs in United States. If we focus on the full year of 2025, we ended up at close to SEK 9.5 billion in sales. That was corresponding to a 2% increase, adjusted for currency. We saw an operating profit increase 11%, even though we had a strong currency headwind. The margin improved and ended up at 11.3%, corresponding to 9.9%. So we saw a full point, 1.4 percentage points increase on margin. The margin rose to 10.4%, so we saw improved margins in both areas, but sequentially lower due to somewhat weaker volumes during the Christmas break, and also some startup costs for the new programs in United States. the margin rose to 10.4% so we saw improved margins in both areas but sequentially lower due to somewhat weaker volumes during the christmas break and also some startup costs for the new programs in united states If we focus on the full year of 2025, we ended up at close to SEK 9.5 billion in sales. if we focus on the full year of 2025 we ended up at close to sek 9.5 billion in sales That was corresponding to a 2% increase, adjusted for currency. that was corresponding to a 2% increase adjusted for currency We saw an operating profit increase 11%, even though we had a strong currency headwind. we saw an operating profit increase 11% even though we had a strong currency headwind The margin improved and ended up at 11.3%, corresponding to 9.9%. the margin improved and ended up at 11.3% corresponding to 9.9% So we saw a full point, 1.4 percentage points increase on margin. so we saw a full point 1.4 percentage points increase on margin The earnings per share ended up at 2.88 SEK per share, and we have a very strong financial position, enabling us to execute on our increased acquisition strategy. The dividend proposal is 1.7 SEK, in comparison to 1.5 SEK per share, and that's a current payout ratio of 59% in comparison to 61% last year. If we jump to page 5, starting with Medical Solutions, here we are on the growth and global expansion journey, and this business area now corresponds to 58% of group sales in the fourth quarter. On page 6, we see our focused product areas. We feel that we are very well positioned with leading global customers and positioned in very interesting product areas. The earnings per share ended up at 2.88 SEK per share, and we have a very strong financial position, enabling us to execute on our increased acquisition strategy. the earnings per share ended up at 2.88 sek per share and we have a very strong financial position enabling us to execute on our increased acquisition strategy The dividend proposal is 1.7 SEK, in comparison to 1.5 SEK per share, and that's a current payout ratio of 59% in comparison to 61% last year. the dividend proposal is 1.7 sek in comparison to 1.5 sek per share and that's a current payout ratio of 59% in comparison to 61% last year If we jump to page 5, starting with Medical Solutions, here we are on the growth and global expansion journey, and this business area now corresponds to 58% of group sales in the fourth quarter. if we jump to page 5 starting with medical solutions here we are on the growth and global expansion journey and this business area now corresponds to 58% of group sales in the fourth quarter On page 6, we see our focused product areas. on page 6 we see our focused product areas We feel that we are very well positioned with leading global customers and positioned in very interesting product areas. we feel that we are very well positioned with leading global customers and positioned in very interesting product areas If we go through them a little quickly, we see the In Vitro Diagnostics with the long-term growth potential, and we have a very strong position in this, therapeutic area. Cardiology, of course, high-end market, a lot of lifetime implants and very high demands on the products, delivered. Drug Delivery, a growth market area, where we have a very strong position, and well-positioned for continuous growth. , it's a changing market. It's Endoscopy and General Surgery interesting with the new sort of more robotic surgery that are coming in. Continence Care, of course, high volume market with, huge volumes. If we then jump into the fourth quarter for medical solutions, we ended up just above SEK 1.3 billion in sales, which corresponds to a 5% adjusted currency growth. If we go through them a little quickly, we see the In Vitro Diagnostics with the long-term growth potential, and we have a very strong position in this, therapeutic area. if we go through them a little quickly we see the in vitro diagnostics with the long-term growth potential and we have a very strong position in this therapeutic area Cardiology, of course, high-end market, a lot of lifetime implants and very high demands on the products, delivered. cardiology of course high-end market a lot of lifetime implants and very high demands on the products delivered Drug Delivery, a growth market area, where we have a very strong position, and well-positioned for continuous growth. , it's a changing market. drug delivery a growth market area where we have a very strong position and well-positioned for continuous growth it's a changing market It's Endoscopy and General Surgery interesting with the new sort of more robotic surgery that are coming in. it's endoscopy and general surgery interesting with the new sort of more robotic surgery that are coming in Continence Care, of course, high volume market with, huge volumes. continence care of course high volume market with huge volumes If we then jump into the fourth quarter for medical solutions, we ended up just above SEK 1.3 billion in sales, which corresponds to a 5% adjusted currency growth. if we then jump into the fourth quarter for medical solutions we ended up just above sek 1.3 billion in sales which corresponds to a 5% adjusted currency growth We see that the drug delivery market continued to exhibit growth within the auto-injector and pen injector systems. We saw a positive development for the in vitro diagnostic during the year, with a slow start last year, and then increasing volumes. If we look on the margin side, we ended up at 11.6% margin for the business area. That is an improvement of 0.4 percentage points compared to 2024. We had, during the quarter, a negative impact due to temporary higher cost for the startups, as mentioned before, and also some volume headwinds during the Christmas breaks. Our expansions are going according to plan, both in Hungary, Poland, and Malaysia. We see that the drug delivery market continued to exhibit growth within the auto-injector and pen injector systems. we see that the drug delivery market continued to exhibit growth within the auto-injector and pen injector systems We saw a positive development for the in vitro diagnostic during the year, with a slow start last year, and then increasing volumes. we saw a positive development for the in vitro diagnostic during the year with a slow start last year and then increasing volumes If we look on the margin side, we ended up at 11.6% margin for the business area. if we look on the margin side we ended up at 11.6% margin for the business area That is an improvement of 0.4 percentage points compared to 2024. that is an improvement of 0.4 percentage points compared to 2024 We had, during the quarter, a negative impact due to temporary higher cost for the startups, as mentioned before, and also some volume headwinds during the Christmas breaks. we had during the quarter a negative impact due to temporary higher cost for the startups as mentioned before and also some volume headwinds during the christmas breaks Our expansions are going according to plan, both in Hungary, Poland, and Malaysia. our expansions are going according to plan both in hungary poland and malaysia Jumping into Engineered Solutions, which is a sales level of close to SEK 1 billion and 42% of group sales in the fourth quarter. In this area, we are focusing on the different product areas, of course, the Consumer Electronics, where we see potentials. Hygiene, good potentials, and Automotive, of course, a little bit slow right now, as we explained in previous quarters. As a little bit different market, the Materials, where we see strong growth, but also affected during this quarter by the increased cost of precious materials. Jumping to the next page, and then summarizing Engineered Solutions for the fourth quarter. As mentioned, strong growth for Materials, 10% increase if we adjust for the currency. We saw sustained performance for Consumer Electronics, particularly in Asia. Jumping into Engineered Solutions, which is a sales level of close to SEK 1 billion and 42% of group sales in the fourth quarter. jumping into engineered solutions which is a sales level of close to sek 1 billion and 42% of group sales in the fourth quarter In this area, we are focusing on the different product areas, of course, the Consumer Electronics, where we see potentials. in this area we are focusing on the different product areas of course the consumer electronics where we see potentials Hygiene, good potentials, and Automotive, of course, a little bit slow right now, as we explained in previous quarters. hygiene good potentials and automotive of course a little bit slow right now as we explained in previous quarters As a little bit different market, the Materials, where we see strong growth, but also affected during this quarter by the increased cost of precious materials. as a little bit different market the materials where we see strong growth but also affected during this quarter by the increased cost of precious materials Jumping to the next page, and then summarizing Engineered Solutions for the fourth quarter. jumping to the next page and then summarizing engineered solutions for the fourth quarter As mentioned, strong growth for Materials, 10% increase if we adjust for the currency. as mentioned strong growth for materials 10% increase if we adjust for the currency We saw sustained performance for Consumer Electronics, particularly in Asia. we saw sustained performance for consumer electronics particularly in asia After a positive performance during the year, volumes decreased for Hygiene in the last quarter due to an inventory adjustments ahead of year-end. The total business area ended up at the margin of 9.9 in comparison to 9.2. We saw, of course, favorable product mix, but if we compare to the previous quarters of 2025, we had negative impact of the lower volumes and sharply increased precious metal prices, as mentioned. After a positive performance during the year, volumes decreased for Hygiene in the last quarter due to an inventory adjustments ahead of year-end. after a positive performance during the year volumes decreased for hygiene in the last quarter due to an inventory adjustments ahead of year-end The total business area ended up at the margin of 9.9 in comparison to 9.2. the total business area ended up at the margin of 9.9 in comparison to 9.2 We saw, of course, favorable product mix, but if we compare to the previous quarters of 2025, we had negative impact of the lower volumes and sharply increased precious metal prices, as mentioned. we saw of course favorable product mix but if we compare to the previous quarters of 2025 we had negative impact of the lower volumes and sharply increased precious metal prices as mentioned

Speaker 5: Good afternoon. Per-Ola Holmström, CFO, and group financial highlights on page 11. Net sales was 2,272 million SEK in the quarter, a 2% growth, given currency headwinds of 7%. Operating profit, EBITDA, amounted to 236 million SEK, slightly below last year, but with currency headwinds of 6%, representing an accelerating negative effect of about 14 million SEK in the fourth quarter. The EBITDA margin for the full year 2025 improved by 1.4 percentage points, driven by pricing, cost adjustments, and efforts in the entire supply chain. The quarter improved 0.3 percentage points to 10.4%. The declined margin compared to previous quarters, 2025, was negatively affected by, one, temporarily higher cost for startup of the new products in the US. Good afternoon. good afternoon Per-Ola Holmström, CFO, and group financial highlights on page 11. per-ola holmström cfo and group financial highlights on page 11 Net sales was 2,272 million SEK in the quarter, a 2% growth, given currency headwinds of 7%. net sales was 2,272 million sek in the quarter a 2% growth given currency headwinds of 7% Operating profit, EBITDA, amounted to 236 million SEK, slightly below last year, but with currency headwinds of 6%, representing an accelerating negative effect of about 14 million SEK in the fourth quarter. operating profit ebitda amounted to 236 million sek slightly below last year but with currency headwinds of 6% representing an accelerating negative effect of about 14 million sek in the fourth quarter The EBITDA margin for the full year 2025 improved by 1.4 percentage points, driven by pricing, cost adjustments, and efforts in the entire supply chain. the ebitda margin for the full year 2025 improved by 1.4 percentage points driven by pricing cost adjustments and efforts in the entire supply chain The quarter improved 0.3 percentage points to 10.4%. the quarter improved 0.3 percentage points to 10.4% The declined margin compared to previous quarters, 2025, was negatively affected by, one, temporarily higher cost for startup of the new products in the US. the declined margin compared to previous quarters 2025 was negatively affected by one temporarily higher cost for startup of the new products in the us The Medical margin was negatively affected by that, by 0.5 percentage points. Two, slightly lower volumes within mainly Engineered due to holidays at year-end. Three, sharply increased prices for precious metals within materials in business area Engineered. Summarizing these two effects for Engineered, the total negative effect is 1.0 percentage points for the business area. Four, group cost was on the high side in Q4, and in comparison to Q3, that had one-offs of +7 million SEK in addition. Effects from M&A activities in Q4, giving a delta of 10 million SEK compared to Q3. Summarizing these four items, the temporary negative effect is in the range of 25-30 million SEK compared to Q3. Parts of these will influence the first quarter 2026, as well. The Medical margin was negatively affected by that, by 0.5 percentage points. the medical margin was negatively affected by that by 0.5 percentage points Two, slightly lower volumes within mainly Engineered due to holidays at year-end. two slightly lower volumes within mainly engineered due to holidays at year-end Three, sharply increased prices for precious metals within materials in business area Engineered. three sharply increased prices for precious metals within materials in business area engineered Summarizing these two effects for Engineered, the total negative effect is 1.0 percentage points for the business area. summarizing these two effects for engineered the total negative effect is 1.0 percentage points for the business area Four, group cost was on the high side in Q4, and in comparison to Q3, that had one-offs of +7 million SEK in addition. four group cost was on the high side in q4 and in comparison to q3 that had one-offs of +7 million sek in addition Effects from M&A activities in Q4, giving a delta of 10 million SEK compared to Q3. effects from m&a activities in q4 giving a delta of 10 million sek compared to q3 Summarizing these four items, the temporary negative effect is in the range of 25-30 million SEK compared to Q3. summarizing these four items the temporary negative effect is in the range of 25-30 million sek compared to q3 Parts of these will influence the first quarter 2026, as well. parts of these will influence the first quarter 2026 as well Cash flow from operating activities was SEK 310 million, a good level in the quarter, but last year was very positive from improved working capital. Net investments, we did see a shift in trends. CapEx declined compared to the comparative quarter last year to SEK 146 million. The full year 2026 is expected to be between SEK 650 million-SEK 700 million, where one hundred approximately still is left for the Hungarian project. Return on capital employed for the full year improved to 14.2%. Cash flow from operating activities was SEK 310 million, a good level in the quarter, but last year was very positive from improved working capital. cash flow from operating activities was sek 310 million a good level in the quarter but last year was very positive from improved working capital Net investments, we did see a shift in trends. net investments we did see a shift in trends CapEx declined compared to the comparative quarter last year to SEK 146 million. capex declined compared to the comparative quarter last year to sek 146 million The full year 2026 is expected to be between SEK 650 million-SEK 700 million, where one hundred approximately still is left for the Hungarian project. the full year 2026 is expected to be between sek 650 million-sek 700 million where one hundred approximately still is left for the hungarian project Return on capital employed for the full year improved to 14.2%. return on capital employed for the full year improved to 14.2%

Speaker 2: Turning to page thirteen, no, sorry, jumping, turning to page twelve, sorry. Sustainable development. We have had a very positive development of our all kinds of measurements on the sustainable side. If we focus first on our Scope 1 and 2 emission, we have reduced this by 96% in absolute terms from our base year 2025 versus our target of 70% for 2020. So it's an impressive journey on that side. If we talk about Scope 3, upstream emissions, we have reduced that by 30% in absolute terms from the same base year versus our target of 25. So we are well ahead of our near-term targets on path towards 2030. Turning to page thirteen, no, sorry, jumping, turning to page twelve, sorry. turning to page thirteen no sorry jumping turning to page twelve sorry Sustainable development. sustainable development We have had a very positive development of our all kinds of measurements on the sustainable side. we have had a very positive development of our all kinds of measurements on the sustainable side If we focus first on our Scope 1 and 2 emission, we have reduced this by 96% in absolute terms from our base year 2025 versus our target of 70% for 2020. if we focus first on our scope 1 and 2 emission we have reduced this by 96% in absolute terms from our base year 2025 versus our target of 70% for 2020 So it's an impressive journey on that side. so it's an impressive journey on that side If we talk about Scope 3, upstream emissions, we have reduced that by 30% in absolute terms from the same base year versus our target of 25. if we talk about scope 3 upstream emissions we have reduced that by 30% in absolute terms from the same base year versus our target of 25 So we are well ahead of our near-term targets on path towards 2030. so we are well ahead of our near-term targets on path towards 2030 We're also delivering fast result on our science-based target initiatives, and our net zero targets for 2045 is approved by Science Based Targets initiative in January of this year. Turning to page 13, focusing on our current situation. Overall, we see very favorable financial position that enables intensified M&A agenda. And focusing on Medical Solutions, we have a continuous growth strategy. We see very high market activity. We have a very strong, broad customer base, with long-standing close customer relationships, enabling us to continue our growth journey. Our establishments of operation in Malaysia and an expansion in Poland and as well as in Hungary, are creating excellent opportunities for us. Within the Engineered Solutions business area, we are advancing our market positions. We're also delivering fast result on our science-based target initiatives, and our net zero targets for 2045 is approved by Science Based Targets initiative in January of this year. we're also delivering fast result on our science-based target initiatives and our net zero targets for 2045 is approved by science based targets initiative in january of this year Turning to page 13, focusing on our current situation. turning to page 13 focusing on our current situation Overall, we see very favorable financial position that enables intensified M&A agenda. overall we see very favorable financial position that enables intensified m&a agenda And focusing on Medical Solutions, we have a continuous growth strategy. and focusing on medical solutions we have a continuous growth strategy We see very high market activity. we see very high market activity We have a very strong, broad customer base, with long-standing close customer relationships, enabling us to continue our growth journey. we have a very strong broad customer base with long-standing close customer relationships enabling us to continue our growth journey Our establishments of operation in Malaysia and an expansion in Poland and as well as in Hungary, are creating excellent opportunities for us. our establishments of operation in malaysia and an expansion in poland and as well as in hungary are creating excellent opportunities for us Within the Engineered Solutions business area, we are advancing our market positions. within the engineered solutions business area we are advancing our market positions We have established position in new product areas, and successful in new products and technology areas, mainly data center, is very positive for materials. Also the expansion of our operations in Malaysia, creating opportunities. We are now handing over for questions. We have established position in new product areas, and successful in new products and technology areas, mainly data center, is very positive for materials. we have established position in new product areas and successful in new products and technology areas mainly data center is very positive for materials Also the expansion of our operations in Malaysia, creating opportunities. also the expansion of our operations in malaysia creating opportunities We are now handing over for questions. we are now handing over for questions

Speaker 3: Thank you so much for the presentation, Gentleman. As you mentioned, we'll now carry on with some questions. So if you're calling in and want to ask a question, press star nine to raise your hand and then star six to unmute yourself when handed the word. The first caller here is Carl Ragnerstam from Nordea. You have the word. Thank you so much for the presentation, Gentleman. thank you so much for the presentation gentleman As you mentioned, we'll now carry on with some questions. as you mentioned we'll now carry on with some questions So if you're calling in and want to ask a question, press star nine to raise your hand and then star six to unmute yourself when handed the word. so if you're calling in and want to ask a question press star nine to raise your hand and then star six to unmute yourself when handed the word The first caller here is Carl Ragnerstam from Nordea. the first caller here is carl ragnerstam from nordea You have the word. you have the word

Speaker 1: Hi. Hi, it's Carl here from Nordea. Sorry for a slow unmuting. A couple of questions here. It is, of course, a lot of dynamics in this report, so I hope to unpack some of them. You mentioned 100 basis points in Engineered owing to shutdowns, as well as the precious material thing. So firstly, I wonder, what materials are we talking about? And secondly, yeah, how do you view that topic specifically for Q1 and Q2? Hi. hi Hi, it's Carl here from Nordea. hi it's carl here from nordea Sorry for a slow unmuting. sorry for a slow unmuting A couple of questions here. a couple of questions here It is, of course, a lot of dynamics in this report, so I hope to unpack some of them. it is of course a lot of dynamics in this report so i hope to unpack some of them You mentioned 100 basis points in Engineered owing to shutdowns, as well as the precious material thing. you mentioned 100 basis points in engineered owing to shutdowns as well as the precious material thing So firstly, I wonder, what materials are we talking about? so firstly i wonder what materials are we talking about And secondly, yeah, how do you view that topic specifically for Q1 and Q2? and secondly yeah how do you view that topic specifically for q1 and q2

Speaker 5: Yeah, we could say that the pricing we are talking about, that is affecting materials. As you know, we are compounding a material which is including metal particles. Some of these materials within that part is based on silver particles. As you have seen, pricing of that has skyrocketed during the fourth quarter, and it has continued in the beginning of January as well. That is a part where we have a quite short actions to change the pricing to our customers, and we are, of course, in the process of doing that. It's more standard materials which we are handling, and that will give effect. Yeah, we could say that the pricing we are talking about, that is affecting materials. yeah we could say that the pricing we are talking about that is affecting materials As you know, we are compounding a material which is including metal particles. as you know we are compounding a material which is including metal particles Some of these materials within that part is based on silver particles. some of these materials within that part is based on silver particles As you have seen, pricing of that has skyrocketed during the fourth quarter, and it has continued in the beginning of January as well. as you have seen pricing of that has skyrocketed during the fourth quarter and it has continued in the beginning of january as well That is a part where we have a quite short actions to change the pricing to our customers, and we are, of course, in the process of doing that. that is a part where we have a quite short actions to change the pricing to our customers and we are of course in the process of doing that It's more standard materials which we are handling, and that will give effect. it's more standard materials which we are handling and that will give effect But of course, there is a timing effect, and as you have seen, pricing have continued up in the beginning of January as well, however, now declining. So we are in the middle of a very dynamic pricing because of the silver materials, mainly. So that is affecting that part. But of course, there is a timing effect, and as you have seen, pricing have continued up in the beginning of January as well, however, now declining. but of course there is a timing effect and as you have seen pricing have continued up in the beginning of january as well however now declining So we are in the middle of a very dynamic pricing because of the silver materials, mainly. so we are in the middle of a very dynamic pricing because of the silver materials mainly So that is affecting that part. so that is affecting that part

Speaker 1: And what portion of the 100 basis points was the metal or material thing compared to the customer order shutdowns? And what portion of the 100 basis points was the metal or material thing compared to the customer order shutdowns? and what portion of the 100 basis points was the metal or material thing compared to the customer order shutdowns

Speaker 5: That is, the larger part of the 1%. That is, the larger part of the 1%. that is the larger part of the 1%

Speaker 1: What did you say about Q1? Is it same effect or less effect or ballpark? What did you say about Q1? what did you say about q1 Is it same effect or less effect or ballpark? is it same effect or less effect or ballpark

Speaker 5: Yeah, we do see that that will continue in Q1 as well, but, it's slowing down a bit, during the end of the quarter. That is our assumption, based on pricing activities that we have done. Then, of course, we don't know, the ongoing, pricing dynamics, for the silver pricing going forward. But as far as we can see right now, there will be, an effect which is slowing down during the rest of the quarter. Yeah, we do see that that will continue in Q1 as well, but, it's slowing down a bit, during the end of the quarter. yeah we do see that that will continue in q1 as well but it's slowing down a bit during the end of the quarter That is our assumption, based on pricing activities that we have done. that is our assumption based on pricing activities that we have done Then, of course, we don't know, the ongoing, pricing dynamics, for the silver pricing going forward. then of course we don't know the ongoing pricing dynamics for the silver pricing going forward But as far as we can see right now, there will be, an effect which is slowing down during the rest of the quarter. but as far as we can see right now there will be an effect which is slowing down during the rest of the quarter

Speaker 1: Now, that's very clear. Jumping into Medical, you mentioned the production ramp-up in the US, the 50 basis points impact. How long is that ramp, and is it a multi-product facility, or what are you ramping? Now, that's very clear. now that's very clear Jumping into Medical, you mentioned the production ramp-up in the US, the 50 basis points impact. jumping into medical you mentioned the production ramp-up in the us the 50 basis points impact How long is that ramp, and is it a multi-product facility, or what are you ramping? how long is that ramp and is it a multi-product facility or what are you ramping

Speaker 2: It's a multi things. There are different programs ramping at the same time, and we are expecting that to continue a little bit into the first quarter, and then, of course, be more steady state. It's a multi things. it's a multi things There are different programs ramping at the same time, and we are expecting that to continue a little bit into the first quarter, and then, of course, be more steady state. there are different programs ramping at the same time and we are expecting that to continue a little bit into the first quarter and then of course be more steady state

Speaker 1: Good. And the final question, if I may, is on the Medical organic growth. Did the new auto-injector contract that you're manufacturing in Hungary contribute with a similar magnitude as in Q3? And if so, what is the main delta behind the acceleration of the organic growth in Medical? Good. good And the final question, if I may, is on the Medical organic growth. and the final question if i may is on the medical organic growth Did the new auto-injector contract that you're manufacturing in Hungary contribute with a similar magnitude as in Q3? did the new auto-injector contract that you're manufacturing in hungary contribute with a similar magnitude as in q3 And if so, what is the main delta behind the acceleration of the organic growth in Medical? and if so what is the main delta behind the acceleration of the organic growth in medical

Speaker 2: ... It's continuing, the new program in Hungary is continuing on the same level as in the third quarter, and it also expected to continue on the same level in the first quarter of 2026. So that's... Then, it's a general thing. We have a growth in different areas, all kinds, all over the place, more or less. ... It's continuing, the new program in Hungary is continuing on the same level as in the third quarter, and it also expected to continue on the same level in the first quarter of 2026. it's continuing the new program in hungary is continuing on the same level as in the third quarter and it also expected to continue on the same level in the first quarter of 2026 So that's... so that's Then, it's a general thing. then it's a general thing We have a growth in different areas, all kinds, all over the place, more or less. we have a growth in different areas all kinds all over the place more or less

Speaker 1: Okay. Oh, oh, sorry, final one. In terms of the M&A cost you touched upon, it seems a little bit, it is a little bit on the high side, given your history of doing due diligence. Is it fair to assume that it's a bigger transaction, or is it several small ones you're looking into? Okay. okay Oh, oh, sorry, final one. oh oh sorry final one In terms of the M&A cost you touched upon, it seems a little bit, it is a little bit on the high side, given your history of doing due diligence. in terms of the m&a cost you touched upon it seems a little bit it is a little bit on the high side given your history of doing due diligence Is it fair to assume that it's a bigger transaction, or is it several small ones you're looking into? is it fair to assume that it's a bigger transaction or is it several small ones you're looking into

Speaker 2: Well, yeah, I mean, the delta of SEK 10 million is coming from seven from the one-time positive effect in Q3, and then the rest is mainly coming from these activities. So, well- Well, yeah, I mean, the delta of SEK 10 million is coming from seven from the one-time positive effect in Q3, and then the rest is mainly coming from these activities. well yeah i mean the delta of sek 10 million is coming from seven from the one-time positive effect in q3 and then the rest is mainly coming from these activities So, well- so well-

Speaker 1: Okay. Okay. okay

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Fair enough. Fair enough. fair enough

Speaker 2: Large or not large- Large or not large- large or not large-

Speaker 1: Okay Okay okay

Speaker 2: ... but, yeah. Nothing- ... but, yeah. but yeah Nothing- nothing-

Speaker 1: I understand that. I understand that. i understand that

Speaker 2: Extra large. Extra large. extra large

Speaker 1: Very good. Thank you. All for me. Very good. very good Thank you. thank you All for me. all for me

Speaker 2: Thank you. Thank you. thank you

Speaker 3: Thank you so much for the questions. The next caller here is Oscar Rönnkvist from SEB. You have the word. Thank you so much for the questions. thank you so much for the questions The next caller here is Oscar Rönnkvist from SEB. the next caller here is oscar rönnkvist from seb You have the word. you have the word

Speaker 4: Hello. Hello, sorry, wasn't able to mute myself. So, yeah, I just had one question on the volumes. So, assuming that there were, you know, earlier shutdowns in Q4, do you expect to see a catch-up effect in Q1, or is it more of a normalized quarter? Hello. hello Hello, sorry, wasn't able to mute myself. hello sorry wasn't able to mute myself So, yeah, I just had one question on the volumes. so yeah i just had one question on the volumes So, assuming that there were, you know, earlier shutdowns in Q4, do you expect to see a catch-up effect in Q1, or is it more of a normalized quarter? so assuming that there were you know earlier shutdowns in q4 do you expect to see a catch-up effect in q1 or is it more of a normalized quarter

Speaker 2: I think we would see the first quarter as a more normalized quarter. I think we would see the first quarter as a more normalized quarter. i think we would see the first quarter as a more normalized quarter

Speaker 4: All right. I see. And then just on the start-up costs there in the US, any particular reason why you sort of highlight that as a temporary cost? I suppose that, I mean, you're looking to expand most of the time. All right. all right I see. i see And then just on the start-up costs there in the US, any particular reason why you sort of highlight that as a temporary cost? and then just on the start-up costs there in the us any particular reason why you sort of highlight that as a temporary cost I suppose that, I mean, you're looking to expand most of the time. i suppose that i mean you're looking to expand most of the time

Speaker 2: Yeah, it was just an explanation to... that we have several things running, and it was more than normal. Yeah, it was just an explanation to... that we have several things running, and it was more than normal. yeah it was just an explanation to that we have several things running and it was more than normal

Speaker 4: All right. I see. And then, just, I think a follow-up on Carl's question before, but just a clarification on the pricing adjustments in materials, in specific. So how would you handle the dynamics of price increases when we have so volatile precious metal prices? All right. all right I see. i see And then, just, I think a follow-up on Carl's question before, but just a clarification on the pricing adjustments in materials, in specific. and then just i think a follow-up on carl's question before but just a clarification on the pricing adjustments in materials in specific So how would you handle the dynamics of price increases when we have so volatile precious metal prices? so how would you handle the dynamics of price increases when we have so volatile precious metal prices

Speaker 2: Yes, it's a continuous... Of course, if you have an upward trend, it's something that then you have to adjust and do it the right timing. And, it's always a dynamic process, and you can't really go back to a customer every day. So then you might lose some temporarily on the upgoing if it's a continuous upward trend. Yes, it's a continuous... yes it's a continuous Of course, if you have an upward trend, it's something that then you have to adjust and do it the right timing. of course if you have an upward trend it's something that then you have to adjust and do it the right timing And, it's always a dynamic process, and you can't really go back to a customer every day. and it's always a dynamic process and you can't really go back to a customer every day So then you might lose some temporarily on the upgoing if it's a continuous upward trend. so then you might lose some temporarily on the upgoing if it's a continuous upward trend

Speaker 4: All right. But have you done any price increases thus far, based on, you know, the higher material prices that we saw in, especially in Q4? All right. all right But have you done any price increases thus far, based on, you know, the higher material prices that we saw in, especially in Q4? but have you done any price increases thus far based on you know the higher material prices that we saw in especially in q4

Speaker 2: Yes. We have. Yes. yes We have. we have

Speaker 4: All right. Perfect. That was all. Thanks. All right. all right Perfect. perfect That was all. that was all Thanks. thanks

Speaker 2: Thank you. Thank you. thank you

Speaker 3: Thank you. And just a final shout-out here, if somebody want to ask a question, please press star nine to raise your hand. We'll give you a couple seconds here to see if anyone else want to ask a question. It seems that that was all the questions we had. So thank you so much, Nolato, for presenting here today, and thank you all for tuning in. I wish you a pleasant day. Thank you. thank you And just a final shout-out here, if somebody want to ask a question, please press star nine to raise your hand. and just a final shout-out here if somebody want to ask a question please press star nine to raise your hand We'll give you a couple seconds here to see if anyone else want to ask a question. we'll give you a couple seconds here to see if anyone else want to ask a question It seems that that was all the questions we had. it seems that that was all the questions we had So thank you so much, Nolato, for presenting here today, and thank you all for tuning in. so thank you so much nolato for presenting here today and thank you all for tuning in I wish you a pleasant day. i wish you a pleasant day

Speaker 2: Thank you. Thank you. thank you