Nolato B — Call Transcript 2026

Hello, welcome to today's presentation with Nolato, where CEO Christer Wahlquist and CFO Per-Ola Holmström will present the report for the first quarter of 2026. After the presentation, there will be a Q&A, if you're calling in and want to ask a question, please press star nine to raise your hand then star six to unmute yourself when handed the word. You can also send in questions via the form to the right. With that said, I hand over the word to you guys. Thank you, and welcome to the presentation of Nolato's first quarter of 2026. Christer Wahlquist speaking here and starting on page two. During the first quarter of 2026, we saw growth in both our business areas, despite a very volatile geopolitical situation. The total organic growth, if we adjust for currency, ended up at 3%, and it was a little bit stronger on the medical side with 5% and 1% on the engineered side. That summarizes to an EBITA of SEK 260 million. Of course, the EBITA was strongly affected by currency headwinds, as we calculate to 7%. We kept our margins on 11% and sustaining them in a good way. Of course, our strong financial position, with very good possibilities to execute our acquisition agenda remains. Turning to page three, summarizing the Nolato group. The group consists of two business areas, the Medical Solutions at 57% of the total and the Engineered Solutions at 43%. Of course, it's two different markets, but behind the scenes we are doing similar things, of course, with some different growth drivers and different key needed things. The two business areas create synergies by combining them to the customer interface. We jump to page four, summarizing the first of the Medical Solutions. Here we can see a 20-year graph of our development, and we are, of course, continuous sustainable growth with global expansion as a target. If you look in behind the scenes on page five, we summarize the different focus product areas. Of course, then we can start with the in vitro diagnostics, which this quarter had a good growth and ended up at 18% of the total business area. This therapeutic areas is a long-term growth market that we think it's has good potential for the continuous years going ahead. The second one is cardiology, ended up also growth, 7% of the total in this area. This is, of course, the area with the toughest quality demands. We have pharma packaging, decreasing as a total of the as a share of the total, 11%. This is an area that we entered into because we wanted to build ourselves strongly into the drug deliveries area. Of course, we see the drug delivery increasing from 16%-70% of the total. This is a long-term potential with the delivery devices for the large molecules within pharma. We saw endoscopy and general surgery decreasing as a total of the total group, ending up at 20%. We saw some stock changes in that market. Continence care, it's a high volume market building for future. Jumping to page six, focusing on the performance first quarter of medical. As mentioned, we increased the sales with 5% adjusted for currency. As I mentioned before, we saw growth in in vitro diagnostics, higher proportion of new products. We saw a continuous upbeat performance of the drug delivery. We saw, as mentioned before, surgery contracted due to inventory adjustments, and other markets had stable volumes. The margin ended up at 11.8 percentage points. We saw some negative impact from the in the quarter from growth in newer products that have not yet reached the planned volumes. Of course, resources for starting up new projects have some negative impact on the margin. The expansion in Hungary linked to the large customer program within the drug delivery, is proceeding according to plan, and the validation deliveries was during the quarter according to plan. Late in the second quarter, we expect to have our first commercial volumes in that program. Jumping to page seven on the Engineered Solutions side. Of course, here we are advancing our high productivity manufacturing on a global scale, adjusting the customer base and growing in new areas. If we look on page eight, we are the focus different areas here. We saw consumer electronics grow as total of so share of the total ending up at 11%. Here, we are doing advanced products for smart homes, so strong growth in that area. The automotive was stable at 23% of the total. On the hygienic side, we saw some stock movements decreasing the total of the share of the total to 13% from 15% before. Others were also had some headwinds on the white goods side, and also some on the forest equipment. Materials had very strong growth within the quarter. This is, as mentioned, a little bit premium margins, as a share of the total, it was growing from 18%-21%. Summarizing the business areas first quarter, we saw 1% adjusted growth, very strong growth for the materials, at full 15% adjusted for currency. We saw, as mentioned before, strong growth in the consumer electronics market, where the smartphone products are growing. Lower volumes within the hygiene, affected by inventories, as mentioned, and stable volumes for automotive. The margin ended up at 10.6%, and of course, it was affected by the favorable mix with a higher proportion of materials. Good afternoon. Per-Ola Holmström, CFO, and group financial highlights on page 10. Net sales was in the quarter a 3% growth, ending up at SEK 2,357,000,000. Currency headwinds of 7%. Operating profit amounted to SEK 260 million compared to SEK 271 million last year, again affected by currency. We had an unchanged EBITDA margin of 11%. Tax rate was within expected range of 22%. Cash flow from operating activities rose to SEK 225 million compared to SEK 135 million. The change of working capital was lower than last year. Investments affecting cash flow decreased to SEK 193 million compared to SEK 271 million, mainly because last year included an operating property in Poland of SEK 69 million. Return on capital employed for the last 12 months was 14%. Net financial liabilities in relation to EBITDA on a low level, 0.5x, securing flexibility for expansion. Turning to page 11 on some development on the sustainable side. We have had a very long-lasting focus on sustainability, which we feel support our business offer to the market, so it's creating opportunities for us. We have, during 2025, operated all plants with 100% renewable electricity. We have eliminated Scope one and two emissions, meaning that Scope three now accounts for 99% of our total carbon dioxide footprint. We have also, during, launched very ambitious sustainable targets for 2030 that are guide developments in climate circularity. It's a very long-term focus, and we are ahead of our competitors and feel that this is gaining market positions and possibilities for us. If we turn to page 12, focus on the current situation for our business area first. Of course, we see on the Medical Solutions side, continuous growth strategy, very high market activity, a lot of focus on innovation, sustainability. We have, in our base, a very broad customer base with very close, long-standing customer relationship. We are expanding, so establishment of operations in Malaysia and this expansion in Poland is ongoing. On the Engineered Solutions side, we are advancing our market positioning, not least in the consumer electronics, and we are on a good way establishing positions in new product areas. We see success in new products, new technologies, mainly in data centers that is very positive for the material side. We are expanding our operations in Malaysia. On the overall, we have a very good possibility and focus on acquiring and adding new technologies to our portfolio, creating synergies to our customers. Thank you. We are now opening up for questions. Thank you so much for the presentation here. As you mentioned, we will now open up for questions. If you're calling in and want to ask a question, please raise star nine to raise your hand and then star six to unmute yourself when given the word. The first caller here is Adrian Gilani from ABG. You have the word. Yes, hello. I would like to start off on a question since you mentioned data centers in the report, which is probably the hottest theme around right now. I feel I have to ask if you can quantify the exposure you have towards data centers and perhaps how much that part contributed to with growth in Q1. Yeah, I would say that it's still very limited numbers in a group perspective. Of course, it's supporting the growth rate very much, and it's coming from almost, yeah, very limited sales in that area. It's standing for substantial part of the growth. Okay. I understand. Then on the, on the sort of, I guess, risk of rising input costs, I appreciate you move these onto customers with some lag. Just to get a picture of this, since you have a lot of petrochemicals on the input cost side, and it's always difficult to track exact prices since there are so many different grades. Can you help us with a rough indication on how much with current price levels you would expect material costs to rise going forward? Yeah. We have, exactly as you say, exposure to that. We do see a lot of changes going on right now. It's a daily change. We do anticipate that in the near time, we would see an increase of the pricing to us between 5% and 10%. That is the range we do anticipate. Okay. That's very helpful. Then if I remember my numbers from the last time in 2022 when we had an oil price spike, at the time, I think you said roughly 60% of your total material costs were linked to oil in some way, and you had roughly three to six months lag on moving this forward. Are those rules of thumb still valid or have things changed since then? I would say that that is an overestimate of the the fuel impact in our BOM. I would say it's more if we look on the things that is going on right now and what's increasing substantially, it is more SEK 1.6 billion-SEK 1.7 billion of our cost base that is subject to this 5%-10% price increase in the near time scenario. Okay. Thank you. That's very helpful. Yeah. One thing, in addition to that, Adrian, is that, as you say, this is something that we pass on to our customers, and we have been exposed to this from time to time. We can see that we have a good track record of being able to pass on this to our customers and coming out in the same shape when it comes to margins. As you say, there is a time lag, and that might be around three months, four months that we are affected by not having transferred all of that. Yeah. I understand. A final one from my end on medical, and you mentioned these new products that aren't quite reaching the planned volumes that you had expected. Can you go into a bit what the reasons are behind this and if there's any structural issues we should be afraid of, or if this is just temporary? It should be a little bit nuanciation on that. The ramping is, of course, a little bit delayed, but during a normal ramp, you see those lower volumes during a period. It's not off track. It's more, the ramp is ongoing and not on the profitable volumes yet. There is no structure, no change in that. Okay. Anything on why it's slower than expected, or is that just, you know, always an uncertainty? Is it within normal estimate risk, so to say? I think it's close to according to plan. Yeah. Okay So it's more linked to, the sort of, introduction to the final markets. Okay. Understand. In that case, that's all for me. Thank you. Thank you. Thank you so much for the questions. The next caller here is the cell phone number that end with one zero zero eight. You have the word. Thank you. This is Oscar Rönnkvist from SEB. My first question, just want to continue on Adrian's question on the potential, you know, margin pressure in the near term. First of all, I think you said three to four months. I mean, Q2 obviously will naturally have, you know, like a lag effect where you don't have a lot of price increases. Is that how to interpret it? You should see, you know, Q3 more of sort of a normalized effect on the EBITA level. Yeah, I think, the timing would be more that, the effects during April is very limited actually, and that we will see a spillover into Q3 instead. That is more the timing we would see. All right. Also just to clarify the 5%-10% price increases, how should we interpret that? Is that across the board or is that a number sort of or a share of your total sales that you're going to push the 5%-10% price increases to customers? The 5%-10% price increases, that is what we are facing from our suppliers of the actual raw materials we are buying it by the fuel pricing. That is an average. It's of course different percentages, high ones, lower ones. That is our estimated average we do see going forward the next coming months. When you refer to SEK 1.6 billion-SEK 1.7 billion, that would be the plastic raw mats, I suppose, and you're going to increase or that you have an increase of like 5%-10%, and those will be passed through to your customers. Is that how to interpret? Right. Exactly. All right. Perfect. Thank you. I just had a question on the GLP-1 ramp up from late Q2. I think you previously mentioned that you were sort of break even when you started with the validation sales. Just wondered if you could add some comments to the incremental margin profile of the commercial volume. Will you have, you know, a very high drop through or does, you know, cost increase a lot when these commercial volumes are shipped? Yeah, like we have explained earlier, we don't see any large negative effects going forward. Of course, we won't have the margins expected at more full scale operation. We don't see that the margins would turn down dramatically based on that startup. That project is of course, one that we're explaining the margin in this Q1 as well, because we already have most of the cost base we are going to use to produce that in larger volumes as well. There is a certain negative effect in the start, but we don't see that to be any substantial negative effects going forward. Got it. That's helpful. Thanks. Just, finally, sort of broad question, I suppose, but, given that you have, you know, very broad exposure in terms of offering and, also geographically, just want to hear your thoughts on the geopolitical uncertainty. Has this caused, you know, a big shift in demand from your customers, which, you know, could potentially affect volumes near term? Or do you feel like you're resilient in even in the Engineered segment? It's interesting. We've seen some volatility over time from different segments and markets. Some are in some periods a little bit cautious. Short time later, they are sort of afraid of some lack of supply, they increase. As an overall, I think it's been volatile but stable underlying. Looking forward, it could also affect maybe single quarters with some stronger or some weaker sales. There will be some volatility connected to this geopolitical situation. All right. Perfect. That was all for me. Thank you very much. Thank you. Thank you for the questions. We go ahead to the next caller, which is cell phone number that ends with eight eight six. Please go ahead. Okay. Can you hear me? Sorry about that. Yes. Perfect. Hi. It's Anders at Nordea. I wanted to ask Christer, Per-Ola some questions. Firstly, on sort of the materials exposure that we discussed. I mean, with quite solid growth in the quarter, it would be interesting to hear you elaborate a bit more on sort of the durability of this growth. I mean, is it mainly a result looking specifically maybe at data centers that, you know, mainly a result of specific customer programs or should we view it as more broad-based exposure in, you know, sort of this end market? Yes. I think it's a good question, and I think it's a situation where we are going into and have been going into new markets for some time, and it's not connected to a single customer. It's a broad growth across different sectors. Of course, we talked a little bit about data centers, but it's also. Some defense, it's across different customers and different markets. We feel that, of course, it was a very strong growth on a high level this quarter, but we see good potential for continuous growth within this area. Okay. Very good. Thank you. Sort of just taking data centers as an example, are you able to share anything sort of in terms of how many customers you're selling into in that sort of vertical? We have numerous customer, numerous different smaller projects that adds up to this. Okay. Thank you. In sort of surgery, you mentioned some inventory adjustments, particularly early in the quarter, as I understood it. Verify a bit sort of if we should view this, if you think we should view this mainly as sort of channel inventory normalization or, I mean, is there any sort of end demand softness here? Well, we think it's volatility in the supply chain still going on. Why do you how do you arrive at that sort of view? Just so we understand that. Yeah, of course, we monitor the sort of end market movements and what kind of end products our deliveries are going into, and then we monitor them, and then we compare that with our deliveries, and then we see volatility. In some period, we are delivering more volumes than the end market is the sell out to the end market. In some periods, we are selling less than the end market movements. Then, of course, that is movement in the, in the supply chain. All right. You're doing your homework, in other words. I mean, to sort of question that more, sort of the rationale. Yeah. We understood that comment. Thank you. Finally, I wanted to ask a bit on sort of you talking about the IVD growth and sort of newer products taking larger share. We discussed sort of the Novo ramp up in Europe, but with some volumes not yet at commercial levels. I mean, could you break down a bit more what you're seeing, not just in terms of the previous discussion, but by end market sort of IVD, drug delivery, surgery, and what needs to happen for the new product ramps to move from sort of margin dilution to supporting the margins over the next couple of quarters? Is it mainly a factor of volumes, or is there anything else sort of in that ramp up that's important to consider? Of course, during the early volumes in the new program, we have some additional costs because we are then of course, making sure that the quality is working in all levels. We have some extra costs to make sure that we are not delivering anything out of specification. Gradually, when volumes and time elapses, then we can reduce our cost base of producing. Of course, we get some efficiency of volumes. That's a normal thing. Now we have quite large programs that are expected to ramp. Of course, it's hitting in this quarter. Okay. Very good. I appreciate the answers. Have a good afternoon. Thank you. Thank you. Thank you for the questions. We will now go ahead with the next caller, who is Mikael Laséen from Carnegie. Yeah. Can you hear me? Yes. Okay, great. Thanks for taking my question. Yeah, I also have a follow-up on this surgery market area, the inventory adjustments. You've had that quite some time. Would be great if you can talk to us a bit more about this volatility, and maybe comment on the product pipeline quality and the underlying market growth, what you're seeing there, and also your market position in this area to get an understanding of the, of the underlying factory. Starting in, we entered into this market some years ago with the view that there is changes coming in the market, more robotic surgery coming, and so on and so forth. That change has been a little bit slower on than we expected at that time. Of course, we think that change is something that is positive. That's why we entered. The volatility, it's very long supply chains in the surgical market. Then you can have swings with different inventories in different levels in the supply chain. It's been more volatile than we expected. We foresee that for some time coming as well. Okay. All right. We have to accept that, I guess, going forward as well. One thing about the silver input cost that you had struggled with a bit in Q4, how did that develop, and have you taken care of it on the current silver prices? Yeah, I think, you could say that, it's been handled with a lot of work during the first quarter. We did see effects of that in the beginning of the quarter. At the end, we do think that most of that has been taken care of either by adjusting pricing or by having a discussion with the customers of changing materials to other metals that are not that involved in the pricing of the silver materials. Okay. I'm just curious about the materials area. How much is volume and price and mix effects in that 15% growth that you talked about? Yeah, of course, there are some effects coming from the price effects. I would say that the larger part of the 15% is definitely coming from volumes. Okay, good. My final one is on CapEx. If you can update us on what to expect for 2026 and maybe also for 2027. Yes. We commented that after Q4 being SEK 650 million-SEK 700 million for the full year 2026. We are still at that expectation, so SEK 650 million-SEK 700 million. Okay. Good to know. Thank you. Thank you. Thank you for the questions there. They were all the callers we had. We have also had a question sent into us. Can you clarify what impact higher input material prices had on Q1 profitability? What magnitude of impact should we expect in Q2 and onwards? How does the impact differ between engineered and medical? Yeah. We have explained the math behind it and our best assumptions. The effects during Q1 were very limited, and it's an onward effect. We did say most of that is during Q2, and some will spill over into Q3 if it stands where it is right now. I think that is the explanation we can give in uncertain areas. Thank you for that. That was all the questions we had. Thank you to Nolato for presenting here today, and thank you all for tuning in and sending in questions and calling in. Thank you all for your interest in Nolato. Thank you.

Speaker 5: Hello, welcome to today's presentation with Nolato, where CEO Christer Wahlquist and CFO Per-Ola Holmström will present the report for the first quarter of 2026. After the presentation, there will be a Q&A, if you're calling in and want to ask a question, please press star nine to raise your hand then star six to unmute yourself when handed the word. You can also send in questions via the form to the right. With that said, I hand over the word to you guys. Hello, welcome to today's presentation with Nolato, where CEO Christer Wahlquist and CFO Per-Ola Holmström will present the report for the first quarter of 2026. hello welcome to today's presentation with nolato where ceo christer wahlquist and cfo per-ola holmström will present the report for the first quarter of 2026 After the presentation, there will be a Q&A, if you're calling in and want to ask a question, please press star nine to raise your hand then star six to unmute yourself when handed the word. after the presentation there will be a q&a if you're calling in and want to ask a question please press star nine to raise your hand 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 With that said, I hand over the word to you guys. with that said i hand over the word to you guys

Speaker 3: Thank you, and welcome to the presentation of Nolato's first quarter of 2026. Christer Wahlquist speaking here and starting on page two. During the first quarter of 2026, we saw growth in both our business areas, despite a very volatile geopolitical situation. The total organic growth, if we adjust for currency, ended up at 3%, and it was a little bit stronger on the medical side with 5% and 1% on the engineered side. That summarizes to an EBITA of SEK 260 million. Of course, the EBITA was strongly affected by currency headwinds, as we calculate to 7%. We kept our margins on 11% and sustaining them in a good way. Thank you, and welcome to the presentation of Nolato's first quarter of 2026. thank you and welcome to the presentation of nolato's first quarter of 2026 Christer Wahlquist speaking here and starting on page two. christer wahlquist speaking here and starting on page two During the first quarter of 2026, we saw growth in both our business areas, despite a very volatile geopolitical situation. during the first quarter of 2026 we saw growth in both our business areas despite a very volatile geopolitical situation The total organic growth, if we adjust for currency, ended up at 3%, and it was a little bit stronger on the medical side with 5% and 1% on the engineered side. the total organic growth if we adjust for currency ended up at 3% and it was a little bit stronger on the medical side with 5% and 1% on the engineered side That summarizes to an EBITA of SEK 260 million. that summarizes to an ebita of sek 260 million Of course, the EBITA was strongly affected by currency headwinds, as we calculate to 7%. of course the ebita was strongly affected by currency headwinds as we calculate to 7% We kept our margins on 11% and sustaining them in a good way. we kept our margins on 11% and sustaining them in a good way Of course, our strong financial position, with very good possibilities to execute our acquisition agenda remains. Turning to page three, summarizing the Nolato group. The group consists of two business areas, the Medical Solutions at 57% of the total and the Engineered Solutions at 43%. Of course, it's two different markets, but behind the scenes we are doing similar things, of course, with some different growth drivers and different key needed things. The two business areas create synergies by combining them to the customer interface. We jump to page four, summarizing the first of the Medical Solutions. Here we can see a 20-year graph of our development, and we are, of course, continuous sustainable growth with global expansion as a target. Of course, our strong financial position, with very good possibilities to execute our acquisition agenda remains. of course our strong financial position with very good possibilities to execute our acquisition agenda remains Turning to page three, summarizing the Nolato group. turning to page three summarizing the nolato group The group consists of two business areas, the Medical Solutions at 57% of the total and the Engineered Solutions at 43%. the group consists of two business areas the medical solutions at 57% of the total and the engineered solutions at 43% Of course, it's two different markets, but behind the scenes we are doing similar things, of course, with some different growth drivers and different key needed things. of course it's two different markets but behind the scenes we are doing similar things of course with some different growth drivers and different key needed things The two business areas create synergies by combining them to the customer interface. the two business areas create synergies by combining them to the customer interface We jump to page four, summarizing the first of the Medical Solutions. we jump to page four summarizing the first of the medical solutions Here we can see a 20-year graph of our development, and we are, of course, continuous sustainable growth with global expansion as a target. here we can see a 20-year graph of our development and we are of course continuous sustainable growth with global expansion as a target If you look in behind the scenes on page five, we summarize the different focus product areas. Of course, then we can start with the in vitro diagnostics, which this quarter had a good growth and ended up at 18% of the total business area. This therapeutic areas is a long-term growth market that we think it's has good potential for the continuous years going ahead. The second one is cardiology, ended up also growth, 7% of the total in this area. This is, of course, the area with the toughest quality demands. We have pharma packaging, decreasing as a total of the as a share of the total, 11%. This is an area that we entered into because we wanted to build ourselves strongly into the drug deliveries area. If you look in behind the scenes on page five, we summarize the different focus product areas. if you look in behind the scenes on page five we summarize the different focus product areas Of course, then we can start with the in vitro diagnostics, which this quarter had a good growth and ended up at 18% of the total business area. of course then we can start with the in vitro diagnostics which this quarter had a good growth and ended up at 18% of the total business area This therapeutic areas is a long-term growth market that we think it's has good potential for the continuous years going ahead. this therapeutic areas is a long-term growth market that we think it's has good potential for the continuous years going ahead The second one is cardiology, ended up also growth, 7% of the total in this area. the second one is cardiology ended up also growth 7% of the total in this area This is, of course, the area with the toughest quality demands. this is of course the area with the toughest quality demands We have pharma packaging, decreasing as a total of the as a share of the total, 11%. we have pharma packaging decreasing as a total of the as a share of the total 11% This is an area that we entered into because we wanted to build ourselves strongly into the drug deliveries area. this is an area that we entered into because we wanted to build ourselves strongly into the drug deliveries area Of course, we see the drug delivery increasing from 16%-70% of the total. This is a long-term potential with the delivery devices for the large molecules within pharma. We saw endoscopy and general surgery decreasing as a total of the total group, ending up at 20%. We saw some stock changes in that market. Continence care, it's a high volume market building for future. Jumping to page six, focusing on the performance first quarter of medical. As mentioned, we increased the sales with 5% adjusted for currency. As I mentioned before, we saw growth in in vitro diagnostics, higher proportion of new products. We saw a continuous upbeat performance of the drug delivery. Of course, we see the drug delivery increasing from 16% - 70% of the total. of course we see the drug delivery increasing from 16% - 70% of the total This is a long-term potential with the delivery devices for the large molecules within pharma. this is a long-term potential with the delivery devices for the large molecules within pharma We saw endoscopy and general surgery decreasing as a total of the total group, ending up at 20%. we saw endoscopy and general surgery decreasing as a total of the total group ending up at 20% We saw some stock changes in that market. we saw some stock changes in that market Continence care, it's a high volume market building for future. continence care it's a high volume market building for future Jumping to page six, focusing on the performance first quarter of medical. jumping to page six focusing on the performance first quarter of medical As mentioned, we increased the sales with 5% adjusted for currency. as mentioned we increased the sales with 5% adjusted for currency As I mentioned before, we saw growth in in vitro diagnostics, higher proportion of new products. as i mentioned before we saw growth in in vitro diagnostics higher proportion of new products We saw a continuous upbeat performance of the drug delivery. we saw a continuous upbeat performance of the drug delivery We saw, as mentioned before, surgery contracted due to inventory adjustments, and other markets had stable volumes. The margin ended up at 11.8 percentage points. We saw some negative impact from the in the quarter from growth in newer products that have not yet reached the planned volumes. Of course, resources for starting up new projects have some negative impact on the margin. The expansion in Hungary linked to the large customer program within the drug delivery, is proceeding according to plan, and the validation deliveries was during the quarter according to plan. Late in the second quarter, we expect to have our first commercial volumes in that program. Jumping to page seven on the Engineered Solutions side. We saw, as mentioned before, surgery contracted due to inventory adjustments, and other markets had stable volumes. we saw as mentioned before surgery contracted due to inventory adjustments and other markets had stable volumes The margin ended up at 11.8 percentage points. the margin ended up at 11.8 percentage points We saw some negative impact from the in the quarter from growth in newer products that have not yet reached the planned volumes. we saw some negative impact from the in the quarter from growth in newer products that have not yet reached the planned volumes Of course, resources for starting up new projects have some negative impact on the margin. of course resources for starting up new projects have some negative impact on the margin The expansion in Hungary linked to the large customer program within the drug delivery, is proceeding according to plan, and the validation deliveries was during the quarter according to plan. the expansion in hungary linked to the large customer program within the drug delivery is proceeding according to plan and the validation deliveries was during the quarter according to plan Late in the second quarter, we expect to have our first commercial volumes in that program. late in the second quarter we expect to have our first commercial volumes in that program Jumping to page seven on the Engineered Solutions side. jumping to page seven on the engineered solutions side Of course, here we are advancing our high productivity manufacturing on a global scale, adjusting the customer base and growing in new areas. If we look on page eight, we are the focus different areas here. We saw consumer electronics grow as total of so share of the total ending up at 11%. Here, we are doing advanced products for smart homes, so strong growth in that area. The automotive was stable at 23% of the total. On the hygienic side, we saw some stock movements decreasing the total of the share of the total to 13% from 15% before. Others were also had some headwinds on the white goods side, and also some on the forest equipment. Materials had very strong growth within the quarter. Of course, here we are advancing our high productivity manufacturing on a global scale, adjusting the customer base and growing in new areas. of course here we are advancing our high productivity manufacturing on a global scale adjusting the customer base and growing in new areas If we look on page eight, we are the focus different areas here. if we look on page eight we are the focus different areas here We saw consumer electronics grow as total of so share of the total ending up at 11%. we saw consumer electronics grow as total of so share of the total ending up at 11% Here, we are doing advanced products for smart homes, so strong growth in that area. here we are doing advanced products for smart homes so strong growth in that area The automotive was stable at 23% of the total. the automotive was stable at 23% of the total On the hygienic side, we saw some stock movements decreasing the total of the share of the total to 13% from 15% before. on the hygienic side we saw some stock movements decreasing the total of the share of the total to 13% from 15% before Others were also had some headwinds on the white goods side, and also some on the forest equipment. others were also had some headwinds on the white goods side and also some on the forest equipment Materials had very strong growth within the quarter. materials had very strong growth within the quarter This is, as mentioned, a little bit premium margins, as a share of the total, it was growing from 18%-21%. Summarizing the business areas first quarter, we saw 1% adjusted growth, very strong growth for the materials, at full 15% adjusted for currency. We saw, as mentioned before, strong growth in the consumer electronics market, where the smartphone products are growing. Lower volumes within the hygiene, affected by inventories, as mentioned, and stable volumes for automotive. The margin ended up at 10.6%, and of course, it was affected by the favorable mix with a higher proportion of materials. This is, as mentioned, a little bit premium margins, as a share of the total, it was growing from 18%- 21%. this is as mentioned a little bit premium margins as a share of the total it was growing from 18%- 21% Summarizing the business areas first quarter, we saw 1% adjusted growth, very strong growth for the materials, at full 15% adjusted for currency. summarizing the business areas first quarter we saw 1% adjusted growth very strong growth for the materials at full 15% adjusted for currency We saw, as mentioned before, strong growth in the consumer electronics market, where the smartphone products are growing. we saw as mentioned before strong growth in the consumer electronics market where the smartphone products are growing Lower volumes within the hygiene, affected by inventories, as mentioned, and stable volumes for automotive. lower volumes within the hygiene affected by inventories as mentioned and stable volumes for automotive The margin ended up at 10.6%, and of course, it was affected by the favorable mix with a higher proportion of materials. the margin ended up at 10.6% and of course it was affected by the favorable mix with a higher proportion of materials

Speaker 7: Good afternoon. Per-Ola Holmström, CFO, and group financial highlights on page 10. Net sales was in the quarter a 3% growth, ending up at SEK 2,357,000,000. Currency headwinds of 7%. Operating profit amounted to SEK 260 million compared to SEK 271 million last year, again affected by currency. We had an unchanged EBITDA margin of 11%. Tax rate was within expected range of 22%. Cash flow from operating activities rose to SEK 225 million compared to SEK 135 million. The change of working capital was lower than last year. Investments affecting cash flow decreased to SEK 193 million compared to SEK 271 million, mainly because last year included an operating property in Poland of SEK 69 million. Good afternoon. good afternoon Per-Ola Holmstr ö m, CFO, and group financial highlights on page 10. per-ola holmstr ö m cfo and group financial highlights on page 10 Net sales was in the quarter a 3% growth, ending up at SEK 2,357,000,000 . net sales was in the quarter a 3% growth ending up at sek 2,357,000,000 Currency headwinds of 7%. currency headwinds of 7% Operating profit amounted to SEK 260 million compared to SEK 271 million last year, again affected by currency. operating profit amounted to sek 260 million compared to sek 271 million last year again affected by currency We had an unchanged EBITDA margin of 11%. we had an unchanged ebitda margin of 11% Tax rate was within expected range of 22%. tax rate was within expected range of 22% Cash flow from operating activities rose to SEK 225 million compared to SEK 135 million. cash flow from operating activities rose to sek 225 million compared to sek 135 million The change of working capital was lower than last year. the change of working capital was lower than last year Investments affecting cash flow decreased to SEK 193 million compared to SEK 271 million, mainly because last year included an operating property in Poland of SEK 69 million. investments affecting cash flow decreased to sek 193 million compared to sek 271 million mainly because last year included an operating property in poland of sek 69 million Return on capital employed for the last 12 months was 14%. Net financial liabilities in relation to EBITDA on a low level, 0.5x, securing flexibility for expansion. Return on capital employed for the last 12 months was 14%. return on capital employed for the last 12 months was 14% Net financial liabilities in relation to EBITDA on a low level, 0.5 x, securing flexibility for expansion. net financial liabilities in relation to ebitda on a low level 0.5 x securing flexibility for expansion Turning to page 11 on some development on the sustainable side. We have had a very long-lasting focus on sustainability, which we feel support our business offer to the market, so it's creating opportunities for us. We have, during 2025, operated all plants with 100% renewable electricity. We have eliminated Scope one and two emissions, meaning that Scope three now accounts for 99% of our total carbon dioxide footprint. We have also, during, launched very ambitious sustainable targets for 2030 that are guide developments in climate circularity. It's a very long-term focus, and we are ahead of our competitors and feel that this is gaining market positions and possibilities for us. If we turn to page 12, focus on the current situation for our business area first. Turning to page 11 on some development on the sustainable side. turning to page 11 on some development on the sustainable side We have had a very long-lasting focus on sustainability, which we feel support our business offer to the market, so it's creating opportunities for us. we have had a very long-lasting focus on sustainability which we feel support our business offer to the market so it's creating opportunities for us We have, during 2025, operated all plants with 100% renewable electricity. we have during 2025 operated all plants with 100% renewable electricity We have eliminated Scope one and two emissions, meaning that Scope three now accounts for 99% of our total carbon dioxide footprint. we have eliminated scope one and two emissions meaning that scope three now accounts for 99% of our total carbon dioxide footprint We have also, during, launched very ambitious sustainable targets for 2030 that are guide developments in climate circularity. we have also during launched very ambitious sustainable targets for 2030 that are guide developments in climate circularity It's a very long-term focus, and we are ahead of our competitors and feel that this is gaining market positions and possibilities for us. it's a very long-term focus and we are ahead of our competitors and feel that this is gaining market positions and possibilities for us If we turn to page 12, focus on the current situation for our business area first. if we turn to page 12 focus on the current situation for our business area first Of course, we see on the Medical Solutions side, continuous growth strategy, very high market activity, a lot of focus on innovation, sustainability. We have, in our base, a very broad customer base with very close, long-standing customer relationship. We are expanding, so establishment of operations in Malaysia and this expansion in Poland is ongoing. On the Engineered Solutions side, we are advancing our market positioning, not least in the consumer electronics, and we are on a good way establishing positions in new product areas. We see success in new products, new technologies, mainly in data centers that is very positive for the material side. We are expanding our operations in Malaysia. On the overall, we have a very good possibility and focus on acquiring and adding new technologies to our portfolio, creating synergies to our customers. Thank you. Of course, we see on the Medical Solutions side, continuous growth strategy, very high market activity, a lot of focus on innovation, sustainability. of course we see on the medical solutions side continuous growth strategy very high market activity a lot of focus on innovation sustainability We have, in our base, a very broad customer base with very close, long-standing customer relationship. we have in our base a very broad customer base with very close long-standing customer relationship We are expanding, so establishment of operations in Malaysia and this expansion in Poland is ongoing. we are expanding so establishment of operations in malaysia and this expansion in poland is ongoing On the Engineered Solutions side, we are advancing our market positioning, not least in the consumer electronics, and we are on a good way establishing positions in new product areas. on the engineered solutions side we are advancing our market positioning not least in the consumer electronics and we are on a good way establishing positions in new product areas We see success in new products, new technologies, mainly in data centers that is very positive for the material side. we see success in new products new technologies mainly in data centers that is very positive for the material side We are expanding our operations in Malaysia. we are expanding our operations in malaysia On the overall, we have a very good possibility and focus on acquiring and adding new technologies to our portfolio, creating synergies to our customers. on the overall we have a very good possibility and focus on acquiring and adding new technologies to our portfolio creating synergies to our customers Thank you. thank you We are now opening up for questions. We are now opening up for questions. we are now opening up for questions

Speaker 5: Thank you so much for the presentation here. As you mentioned, we will now open up for questions. If you're calling in and want to ask a question, please raise star nine to raise your hand and then star six to unmute yourself when given the word. The first caller here is Adrian Gilani from ABG. You have the word. Thank you so much for the presentation here. thank you so much for the presentation here As you mentioned, we will now open up for questions. as you mentioned we will now open up for questions If you're calling in and want to ask a question, please raise star nine to raise your hand and then star six to unmute yourself when given the word. if you're calling in and want to ask a question please raise star nine to raise your hand and then star six to unmute yourself when given the word The first caller here is Adrian Gilani from ABG. the first caller here is adrian gilani from abg You have the word. you have the word

Speaker 1: Yes, hello. I would like to start off on a question since you mentioned data centers in the report, which is probably the hottest theme around right now. I feel I have to ask if you can quantify the exposure you have towards data centers and perhaps how much that part contributed to with growth in Q1. Yes, hello. yes hello I would like to start off on a question since you mentioned data centers in the report, which is probably the hottest theme around right now. i would like to start off on a question since you mentioned data centers in the report which is probably the hottest theme around right now I feel I have to ask if you can quantify the exposure you have towards data centers and perhaps how much that part contributed to with growth in Q1. i feel i have to ask if you can quantify the exposure you have towards data centers and perhaps how much that part contributed to with growth in q1

Speaker 7: Yeah, I would say that it's still very limited numbers in a group perspective. Of course, it's supporting the growth rate very much, and it's coming from almost, yeah, very limited sales in that area. It's standing for substantial part of the growth. Yeah, I would say that it's still very limited numbers in a group perspective. yeah i would say that it's still very limited numbers in a group perspective Of course, it's supporting the growth rate very much, and it's coming from almost, yeah, very limited sales in that area. of course it's supporting the growth rate very much and it's coming from almost yeah very limited sales in that area It's standing for substantial part of the growth. it's standing for substantial part of the growth

Speaker 1: Okay. I understand. Then on the, on the sort of, I guess, risk of rising input costs, I appreciate you move these onto customers with some lag. Just to get a picture of this, since you have a lot of petrochemicals on the input cost side, and it's always difficult to track exact prices since there are so many different grades. Can you help us with a rough indication on how much with current price levels you would expect material costs to rise going forward? Okay. okay I understand. i understand Then on the, on the sort of, I guess, risk of rising input costs, I appreciate you move these onto customers with some lag. then on the on the sort of i guess risk of rising input costs i appreciate you move these onto customers with some lag Just to get a picture of this, since you have a lot of petrochemicals on the input cost side, and it's always difficult to track exact prices since there are so many different grades. just to get a picture of this since you have a lot of petrochemicals on the input cost side and it's always difficult to track exact prices since there are so many different grades Can you help us with a rough indication on how much with current price levels you would expect material costs to rise going forward? can you help us with a rough indication on how much with current price levels you would expect material costs to rise going forward

Speaker 7: Yeah. We have, exactly as you say, exposure to that. We do see a lot of changes going on right now. It's a daily change. We do anticipate that in the near time, we would see an increase of the pricing to us between 5% and 10%. That is the range we do anticipate. Yeah. yeah We have, exactly as you say, exposure to that. we have exactly as you say exposure to that We do see a lot of changes going on right now. we do see a lot of changes going on right now It's a daily change. it's a daily change We do anticipate that in the near time, we would see an increase of the pricing to us between 5% and 10%. we do anticipate that in the near time we would see an increase of the pricing to us between 5% and 10% That is the range we do anticipate. that is the range we do anticipate

Speaker 1: Okay. That's very helpful. Then if I remember my numbers from the last time in 2022 when we had an oil price spike, at the time, I think you said roughly 60% of your total material costs were linked to oil in some way, and you had roughly three to six months lag on moving this forward. Are those rules of thumb still valid or have things changed since then? Okay. okay That's very helpful. that's very helpful Then if I remember my numbers from the last time in 2022 when we had an oil price spike, at the time, I think you said roughly 60% of your total material costs were linked to oil in some way, and you had roughly three to six months lag on moving this forward. then if i remember my numbers from the last time in 2022 when we had an oil price spike at the time i think you said roughly 60% of your total material costs were linked to oil in some way and you had roughly three to six months lag on moving this forward Are those rules of thumb still valid or have things changed since then? are those rules of thumb still valid or have things changed since then

Speaker 7: I would say that that is an overestimate of the the fuel impact in our BOM. I would say it's more if we look on the things that is going on right now and what's increasing substantially, it is more SEK 1.6 billion-SEK 1.7 billion of our cost base that is subject to this 5%-10% price increase in the near time scenario. I would say that that is an overestimate of the the fuel impact in our BOM. i would say that that is an overestimate of the the fuel impact in our bom I would say it's more if we look on the things that is going on right now and what's increasing substantially, it is more SEK 1.6 billion-SEK 1.7 billion of our cost base that is subject to this 5%-10% price increase in the near time scenario. i would say it's more if we look on the things that is going on right now and what's increasing substantially it is more sek 1.6 billion-sek 1.7 billion of our cost base that is subject to this 5%-10% price increase in the near time scenario

Speaker 1: Okay. Thank you. That's very helpful. Okay. okay Thank you. thank you That's very helpful. that's very helpful

Speaker 7: Yeah. One thing, in addition to that, Adrian, is that, as you say, this is something that we pass on to our customers, and we have been exposed to this from time to time. We can see that we have a good track record of being able to pass on this to our customers and coming out in the same shape when it comes to margins. As you say, there is a time lag, and that might be around three months, four months that we are affected by not having transferred all of that. Yeah. yeah One thing, in addition to that, Adrian, is that, as you say, this is something that we pass on to our customers, and we have been exposed to this from time to time. one thing in addition to that adrian is that as you say this is something that we pass on to our customers and we have been exposed to this from time to time We can see that we have a good track record of being able to pass on this to our customers and coming out in the same shape when it comes to margins. we can see that we have a good track record of being able to pass on this to our customers and coming out in the same shape when it comes to margins As you say, there is a time lag, and that might be around three months, four months that we are affected by not having transferred all of that. as you say there is a time lag and that might be around three months four months that we are affected by not having transferred all of that

Speaker 1: Yeah. I understand. A final one from my end on medical, and you mentioned these new products that aren't quite reaching the planned volumes that you had expected. Can you go into a bit what the reasons are behind this and if there's any structural issues we should be afraid of, or if this is just temporary? Yeah. yeah I understand. i understand A final one from my end on medical, and you mentioned these new products that aren't quite reaching the planned volumes that you had expected. a final one from my end on medical and you mentioned these new products that aren't quite reaching the planned volumes that you had expected Can you go into a bit what the reasons are behind this and if there's any structural issues we should be afraid of, or if this is just temporary? can you go into a bit what the reasons are behind this and if there's any structural issues we should be afraid of or if this is just temporary

Speaker 3: It should be a little bit nuanciation on that. The ramping is, of course, a little bit delayed, but during a normal ramp, you see those lower volumes during a period. It's not off track. It's more, the ramp is ongoing and not on the profitable volumes yet. There is no structure, no change in that. It should be a little bit nuanciation on that. it should be a little bit nuanciation on that The ramping is, of course, a little bit delayed, but during a normal ramp, you see those lower volumes during a period. the ramping is of course a little bit delayed but during a normal ramp you see those lower volumes during a period It's not off track. it's not off track It's more, the ramp is ongoing and not on the profitable volumes yet. it's more the ramp is ongoing and not on the profitable volumes yet There is no structure, no change in that. there is no structure no change in that

Speaker 1: Okay. Anything on why it's slower than expected, or is that just, you know, always an uncertainty? Is it within normal estimate risk, so to say? Okay. okay Anything on why it's slower than expected, or is that just, you know, always an uncertainty? anything on why it's slower than expected or is that just you know always an uncertainty Is it within normal estimate risk, so to say? is it within normal estimate risk so to say

Speaker 3: I think it's close to according to plan. I think it's close to according to plan. i think it's close to according to plan

Speaker 1: Yeah. Okay Yeah. yeah okay Okay okay

Speaker 3: So it's more linked to, the sort of, introduction to the final markets. So it's more linked to, the sort of, introduction to the final markets. so it's more linked to the sort of introduction to the final markets

Speaker 1: Okay. Understand. In that case, that's all for me. Thank you. Okay. okay Understand. understand In that case, that's all for me. in that case that's all for me Thank you. thank you

Speaker 3: Thank you. Thank you. thank you

Speaker 5: Thank you so much for the questions. The next caller here is the cell phone number that end with one zero zero eight. You have the word. Thank you so much for the questions. thank you so much for the questions The next caller here is the cell phone number that end with one zero zero eight. the next caller here is the cell phone number that end with one zero zero eight You have the word. you have the word

Speaker 6: Thank you. This is Oscar Rönnkvist from SEB. My first question, just want to continue on Adrian's question on the potential, you know, margin pressure in the near term. First of all, I think you said three to four months. I mean, Q2 obviously will naturally have, you know, like a lag effect where you don't have a lot of price increases. Is that how to interpret it? You should see, you know, Q3 more of sort of a normalized effect on the EBITA level. Thank you. thank you This is Oscar Rönnkvist from SEB. this is oscar rönnkvist from seb My first question, just want to continue on Adrian's question on the potential, you know, margin pressure in the near term. my first question just want to continue on adrian's question on the potential you know margin pressure in the near term First of all, I think you said three to four months. first of all i think you said three to four months I mean, Q2 obviously will naturally have, you know, like a lag effect where you don't have a lot of price increases. i mean q2 obviously will naturally have you know like a lag effect where you don't have a lot of price increases Is that how to interpret it? is that how to interpret it You should see, you know, Q3 more of sort of a normalized effect on the EBITA level. you should see you know q3 more of sort of a normalized effect on the ebita level

Speaker 7: Yeah, I think, the timing would be more that, the effects during April is very limited actually, and that we will see a spillover into Q3 instead. That is more the timing we would see. Yeah, I think, the timing would be more that, the effects during April is very limited actually, and that we will see a spillover into Q3 instead. yeah i think the timing would be more that the effects during april is very limited actually and that we will see a spillover into q3 instead That is more the timing we would see. that is more the timing we would see

Speaker 6: All right. Also just to clarify the 5%-10% price increases, how should we interpret that? Is that across the board or is that a number sort of or a share of your total sales that you're going to push the 5%-10% price increases to customers? All right. all right Also just to clarify the 5%-10% price increases, how should we interpret that? also just to clarify the 5%-10% price increases how should we interpret that Is that across the board or is that a number sort of or a share of your total sales that you're going to push the 5%-10% price increases to customers? is that across the board or is that a number sort of or a share of your total sales that you're going to push the 5%-10% price increases to customers

Speaker 7: The 5%-10% price increases, that is what we are facing from our suppliers of the actual raw materials we are buying it by the fuel pricing. That is an average. It's of course different percentages, high ones, lower ones. That is our estimated average we do see going forward the next coming months. The 5%-10% price increases, that is what we are facing from our suppliers of the actual raw materials we are buying it by the fuel pricing. the 5%-10% price increases that is what we are facing from our suppliers of the actual raw materials we are buying it by the fuel pricing That is an average. that is an average It's of course different percentages, high ones, lower ones. it's of course different percentages high ones lower ones That is our estimated average we do see going forward the next coming months. that is our estimated average we do see going forward the next coming months

Speaker 6: When you refer to SEK 1.6 billion-SEK 1.7 billion, that would be the plastic raw mats, I suppose, and you're going to increase or that you have an increase of like 5%-10%, and those will be passed through to your customers. Is that how to interpret? When you refer to SEK 1.6 billion-SEK 1.7 billion, that would be the plastic raw mats, I suppose, and you're going to increase or that you have an increase of like 5%-10%, and those will be passed through to your customers. when you refer to sek 1.6 billion-sek 1.7 billion that would be the plastic raw mats i suppose and you're going to increase or that you have an increase of like 5%-10% and those will be passed through to your customers Is that how to interpret? is that how to interpret

Speaker 7: Right. Exactly. Right. right Exactly. exactly

Speaker 6: All right. Perfect. Thank you. I just had a question on the GLP-1 ramp up from late Q2. I think you previously mentioned that you were sort of break even when you started with the validation sales. Just wondered if you could add some comments to the incremental margin profile of the commercial volume. Will you have, you know, a very high drop through or does, you know, cost increase a lot when these commercial volumes are shipped? All right. all right Perfect. perfect Thank you. thank you I just had a question on the GLP-1 ramp up from late Q2. i just had a question on the glp-1 ramp up from late q2 I think you previously mentioned that you were sort of break even when you started with the validation sales. i think you previously mentioned that you were sort of break even when you started with the validation sales Just wondered if you could add some comments to the incremental margin profile of the commercial volume. just wondered if you could add some comments to the incremental margin profile of the commercial volume Will you have, you know, a very high drop through or does, you know, cost increase a lot when these commercial volumes are shipped? will you have you know a very high drop through or does you know cost increase a lot when these commercial volumes are shipped

Speaker 7: Yeah, like we have explained earlier, we don't see any large negative effects going forward. Of course, we won't have the margins expected at more full scale operation. We don't see that the margins would turn down dramatically based on that startup. That project is of course, one that we're explaining the margin in this Q1 as well, because we already have most of the cost base we are going to use to produce that in larger volumes as well. There is a certain negative effect in the start, but we don't see that to be any substantial negative effects going forward. Yeah, like we have explained earlier, we don't see any large negative effects going forward. yeah like we have explained earlier we don't see any large negative effects going forward Of course, we won't have the margins expected at more full scale operation. of course we won't have the margins expected at more full scale operation We don't see that the margins would turn down dramatically based on that startup. we don't see that the margins would turn down dramatically based on that startup That project is of course, one that we're explaining the margin in this Q1 as well, because we already have most of the cost base we are going to use to produce that in larger volumes as well. that project is of course one that we're explaining the margin in this q1 as well because we already have most of the cost base we are going to use to produce that in larger volumes as well There is a certain negative effect in the start, but we don't see that to be any substantial negative effects going forward. there is a certain negative effect in the start but we don't see that to be any substantial negative effects going forward

Speaker 6: Got it. That's helpful. Thanks. Just, finally, sort of broad question, I suppose, but, given that you have, you know, very broad exposure in terms of offering and, also geographically, just want to hear your thoughts on the geopolitical uncertainty. Has this caused, you know, a big shift in demand from your customers, which, you know, could potentially affect volumes near term? Or do you feel like you're resilient in even in the Engineered segment? Got it. got it That's helpful. that's helpful Thanks. thanks Just, finally, sort of broad question, I suppose, but, given that you have, you know, very broad exposure in terms of offering and, also geographically, just want to hear your thoughts on the geopolitical uncertainty. just finally sort of broad question i suppose but given that you have you know very broad exposure in terms of offering and also geographically just want to hear your thoughts on the geopolitical uncertainty Has this caused, you know, a big shift in demand from your customers, which, you know, could potentially affect volumes near term? has this caused you know a big shift in demand from your customers which you know could potentially affect volumes near term Or do you feel like you're resilient in even in the Engineered segment? or do you feel like you're resilient in even in the engineered segment

Speaker 7: It's interesting. We've seen some volatility over time from different segments and markets. Some are in some periods a little bit cautious. Short time later, they are sort of afraid of some lack of supply, they increase. As an overall, I think it's been volatile but stable underlying. Looking forward, it could also affect maybe single quarters with some stronger or some weaker sales. There will be some volatility connected to this geopolitical situation. It's interesting. it's interesting We've seen some volatility over time from different segments and markets. we've seen some volatility over time from different segments and markets Some are in some periods a little bit cautious. some are in some periods a little bit cautious Short time later, they are sort of afraid of some lack of supply, they increase. short time later they are sort of afraid of some lack of supply they increase As an overall, I think it's been volatile but stable underlying. as an overall i think it's been volatile but stable underlying Looking forward, it could also affect maybe single quarters with some stronger or some weaker sales. looking forward it could also affect maybe single quarters with some stronger or some weaker sales There will be some volatility connected to this geopolitical situation. there will be some volatility connected to this geopolitical situation

Speaker 6: All right. Perfect. That was all for me. Thank you very much. All right. all right Perfect. perfect That was all for me. that was all for me Thank you very much. thank you very much

Speaker 7: Thank you. Thank you. thank you

Speaker 5: Thank you for the questions. We go ahead to the next caller, which is cell phone number that ends with eight eight six. Please go ahead. Thank you for the questions. thank you for the questions We go ahead to the next caller, which is cell phone number that ends with eight eight six. we go ahead to the next caller which is cell phone number that ends with eight eight six Please go ahead. please go ahead

Speaker 2: Okay. Can you hear me? Sorry about that. Okay. okay Can you hear me? can you hear me Sorry about that. sorry about that

Speaker 7: Yes. Yes. yes

Speaker 2: Perfect. Hi. It's Anders at Nordea. I wanted to ask Christer, Per-Ola some questions. Firstly, on sort of the materials exposure that we discussed. I mean, with quite solid growth in the quarter, it would be interesting to hear you elaborate a bit more on sort of the durability of this growth. I mean, is it mainly a result looking specifically maybe at data centers that, you know, mainly a result of specific customer programs or should we view it as more broad-based exposure in, you know, sort of this end market? Perfect. perfect Hi. hi It's Anders at Nordea. it's anders at nordea I wanted to ask Christer, Per-Ola some questions. i wanted to ask christer per-ola some questions Firstly, on sort of the materials exposure that we discussed. firstly on sort of the materials exposure that we discussed I mean, with quite solid growth in the quarter, it would be interesting to hear you elaborate a bit more on sort of the durability of this growth. i mean with quite solid growth in the quarter it would be interesting to hear you elaborate a bit more on sort of the durability of this growth I mean, is it mainly a result looking specifically maybe at data centers that, you know, mainly a result of specific customer programs or should we view it as more broad-based exposure in, you know, sort of this end market? i mean is it mainly a result looking specifically maybe at data centers that you know mainly a result of specific customer programs or should we view it as more broad-based exposure in you know sort of this end market

Speaker 7: Yes. I think it's a good question, and I think it's a situation where we are going into and have been going into new markets for some time, and it's not connected to a single customer. It's a broad growth across different sectors. Of course, we talked a little bit about data centers, but it's also. Yes. yes I think it's a good question, and I think it's a situation where we are going into and have been going into new markets for some time, and it's not connected to a single customer. i think it's a good question and i think it's a situation where we are going into and have been going into new markets for some time and it's not connected to a single customer It's a broad growth across different sectors. it's a broad growth across different sectors Of course, we talked a little bit about data centers, but it's also. of course we talked a little bit about data centers but it's also Some defense, it's across different customers and different markets. We feel that, of course, it was a very strong growth on a high level this quarter, but we see good potential for continuous growth within this area. Some defense, it's across different customers and different markets. some defense it's across different customers and different markets We feel that, of course, it was a very strong growth on a high level this quarter, but we see good potential for continuous growth within this area. we feel that of course it was a very strong growth on a high level this quarter but we see good potential for continuous growth within this area

Speaker 2: Okay. Very good. Thank you. Sort of just taking data centers as an example, are you able to share anything sort of in terms of how many customers you're selling into in that sort of vertical? Okay. okay Very good. very good Thank you. thank you Sort of just taking data centers as an example, are you able to share anything sort of in terms of how many customers you're selling into in that sort of vertical? sort of just taking data centers as an example are you able to share anything sort of in terms of how many customers you're selling into in that sort of vertical

Speaker 7: We have numerous customer, numerous different smaller projects that adds up to this. We have numerous customer, numerous different smaller projects that adds up to this. we have numerous customer numerous different smaller projects that adds up to this

Speaker 2: Okay. Thank you. In sort of surgery, you mentioned some inventory adjustments, particularly early in the quarter, as I understood it. Verify a bit sort of if we should view this, if you think we should view this mainly as sort of channel inventory normalization or, I mean, is there any sort of end demand softness here? Okay. okay Thank you. thank you In sort of surgery, you mentioned some inventory adjustments, particularly early in the quarter, as I understood it. in sort of surgery you mentioned some inventory adjustments particularly early in the quarter as i understood it Verify a bit sort of if we should view this, if you think we should view this mainly as sort of channel inventory normalization or, I mean, is there any sort of end demand softness here? verify a bit sort of if we should view this if you think we should view this mainly as sort of channel inventory normalization or i mean is there any sort of end demand softness here

Speaker 7: Well, we think it's volatility in the supply chain still going on. Well, we think it's volatility in the supply chain still going on. well we think it's volatility in the supply chain still going on

Speaker 2: Why do you how do you arrive at that sort of view? Just so we understand that. Why do you how do you arrive at that sort of view? why do you how do you arrive at that sort of view Just so we understand that. just so we understand that

Speaker 7: Yeah, of course, we monitor the sort of end market movements and what kind of end products our deliveries are going into, and then we monitor them, and then we compare that with our deliveries, and then we see volatility. In some period, we are delivering more volumes than the end market is the sell out to the end market. In some periods, we are selling less than the end market movements. Then, of course, that is movement in the, in the supply chain. Yeah, of course, we monitor the sort of end market movements and what kind of end products our deliveries are going into, and then we monitor them, and then we compare that with our deliveries, and then we see volatility. yeah of course we monitor the sort of end market movements and what kind of end products our deliveries are going into and then we monitor them and then we compare that with our deliveries and then we see volatility In some period, we are delivering more volumes than the end market is the sell out to the end market. in some period we are delivering more volumes than the end market is the sell out to the end market In some periods, we are selling less than the end market movements. in some periods we are selling less than the end market movements Then, of course, that is movement in the, in the supply chain. then of course that is movement in the in the supply chain

Speaker 2: All right. You're doing your homework, in other words. I mean, to sort of question that more, sort of the rationale. All right. all right You're doing your homework, in other words. you're doing your homework in other words I mean, to sort of question that more, sort of the rationale. i mean to sort of question that more sort of the rationale

Speaker 7: Yeah. Yeah. yeah

Speaker 2: We understood that comment. Thank you. Finally, I wanted to ask a bit on sort of you talking about the IVD growth and sort of newer products taking larger share. We discussed sort of the Novo ramp up in Europe, but with some volumes not yet at commercial levels. I mean, could you break down a bit more what you're seeing, not just in terms of the previous discussion, but by end market sort of IVD, drug delivery, surgery, and what needs to happen for the new product ramps to move from sort of margin dilution to supporting the margins over the next couple of quarters? Is it mainly a factor of volumes, or is there anything else sort of in that ramp up that's important to consider? We understood that comment. we understood that comment Thank you. thank you Finally, I wanted to ask a bit on sort of you talking about the IVD growth and sort of newer products taking larger share. finally i wanted to ask a bit on sort of you talking about the ivd growth and sort of newer products taking larger share We discussed sort of the Novo ramp up in Europe, but with some volumes not yet at commercial levels. we discussed sort of the novo ramp up in europe but with some volumes not yet at commercial levels I mean, could you break down a bit more what you're seeing, not just in terms of the previous discussion, but by end market sort of IVD, drug delivery, surgery, and what needs to happen for the new product ramps to move from sort of margin dilution to supporting the margins over the next couple of quarters? i mean could you break down a bit more what you're seeing not just in terms of the previous discussion but by end market sort of ivd drug delivery surgery and what needs to happen for the new product ramps to move from sort of margin dilution to supporting the margins over the next couple of quarters Is it mainly a factor of volumes, or is there anything else sort of in that ramp up that's important to consider? is it mainly a factor of volumes or is there anything else sort of in that ramp up that's important to consider

Speaker 7: Of course, during the early volumes in the new program, we have some additional costs because we are then of course, making sure that the quality is working in all levels. We have some extra costs to make sure that we are not delivering anything out of specification. Gradually, when volumes and time elapses, then we can reduce our cost base of producing. Of course, we get some efficiency of volumes. That's a normal thing. Now we have quite large programs that are expected to ramp. Of course, it's hitting in this quarter. Of course, during the early volumes in the new program, we have some additional costs because we are then of course, making sure that the quality is working in all levels. of course during the early volumes in the new program we have some additional costs because we are then of course making sure that the quality is working in all levels We have some extra costs to make sure that we are not delivering anything out of specification. we have some extra costs to make sure that we are not delivering anything out of specification Gradually, when volumes and time elapses, then we can reduce our cost base of producing. gradually when volumes and time elapses then we can reduce our cost base of producing Of course, we get some efficiency of volumes. of course we get some efficiency of volumes That's a normal thing. that's a normal thing Now we have quite large programs that are expected to ramp. now we have quite large programs that are expected to ramp Of course, it's hitting in this quarter. of course it's hitting in this quarter

Speaker 2: Okay. Very good. I appreciate the answers. Have a good afternoon. Thank you. Okay. okay Very good. very good I appreciate the answers. i appreciate the answers Have a good afternoon. have a good afternoon Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 5: Thank you for the questions. We will now go ahead with the next caller, who is Mikael Laséen from Carnegie. Thank you for the questions. thank you for the questions We will now go ahead with the next caller, who is Mikael Laséen from Carnegie. we will now go ahead with the next caller who is mikael laséen from carnegie

Speaker 4: Yeah. Can you hear me? Yeah. yeah Can you hear me? can you hear me

Speaker 3: Yes. Yes. yes

Speaker 4: Okay, great. Thanks for taking my question. Yeah, I also have a follow-up on this surgery market area, the inventory adjustments. You've had that quite some time. Would be great if you can talk to us a bit more about this volatility, and maybe comment on the product pipeline quality and the underlying market growth, what you're seeing there, and also your market position in this area to get an understanding of the, of the underlying factory. Okay, great. okay great Thanks for taking my question. thanks for taking my question Yeah, I also have a follow-up on this surgery market area, the inventory adjustments. yeah i also have a follow-up on this surgery market area the inventory adjustments You've had that quite some time. you've had that quite some time Would be great if you can talk to us a bit more about this volatility, and maybe comment on the product pipeline quality and the underlying market growth, what you're seeing there, and also your market position in this area to get an understanding of the, of the underlying factory. would be great if you can talk to us a bit more about this volatility and maybe comment on the product pipeline quality and the underlying market growth what you're seeing there and also your market position in this area to get an understanding of the of the underlying factory

Speaker 3: Starting in, we entered into this market some years ago with the view that there is changes coming in the market, more robotic surgery coming, and so on and so forth. That change has been a little bit slower on than we expected at that time. Of course, we think that change is something that is positive. That's why we entered. The volatility, it's very long supply chains in the surgical market. Then you can have swings with different inventories in different levels in the supply chain. It's been more volatile than we expected. We foresee that for some time coming as well. Starting in, we entered into this market some years ago with the view that there is changes coming in the market, more robotic surgery coming, and so on and so forth. starting in we entered into this market some years ago with the view that there is changes coming in the market more robotic surgery coming and so on and so forth That change has been a little bit slower on than we expected at that time. that change has been a little bit slower on than we expected at that time Of course, we think that change is something that is positive. of course we think that change is something that is positive That's why we entered. that's why we entered The volatility, it's very long supply chains in the surgical market. the volatility it's very long supply chains in the surgical market Then you can have swings with different inventories in different levels in the supply chain. then you can have swings with different inventories in different levels in the supply chain It's been more volatile than we expected. it's been more volatile than we expected We foresee that for some time coming as well. we foresee that for some time coming as well

Speaker 4: Okay. All right. We have to accept that, I guess, going forward as well. One thing about the silver input cost that you had struggled with a bit in Q4, how did that develop, and have you taken care of it on the current silver prices? Okay. okay All right. all right We have to accept that, I guess, going forward as well. we have to accept that i guess going forward as well One thing about the silver input cost that you had struggled with a bit in Q4, how did that develop, and have you taken care of it on the current silver prices? one thing about the silver input cost that you had struggled with a bit in q4 how did that develop and have you taken care of it on the current silver prices

Speaker 3: Yeah, I think, you could say that, it's been handled with a lot of work during the first quarter. We did see effects of that in the beginning of the quarter. At the end, we do think that most of that has been taken care of either by adjusting pricing or by having a discussion with the customers of changing materials to other metals that are not that involved in the pricing of the silver materials. Yeah, I think, you could say that, it's been handled with a lot of work during t he first quarter. yeah i think you could say that it's been handled with a lot of work during t he first quarter We did see effects of that in the beginning of the quarter. we did see effects of that in the beginning of the quarter At the end, we do think that most of that has been taken care of either by adjusting pricing or by having a discussion with the customers of changing materials to other metals that are not that involved in the pricing of the silver materials. at the end we do think that most of that has been taken care of either by adjusting pricing or by having a discussion with the customers of changing materials to other metals that are not that involved in the pricing of the silver materials

Speaker 4: Okay. I'm just curious about the materials area. How much is volume and price and mix effects in that 15% growth that you talked about? Okay. okay I'm just curious about the materials area. i'm just curious about the materials area How much is volume and price and mix effects in that 15% growth that you talked about? how much is volume and price and mix effects in that 15% growth that you talked about

Speaker 7: Yeah, of course, there are some effects coming from the price effects. I would say that the larger part of the 15% is definitely coming from volumes. Yeah, of course, there are some effects coming from the price effects. yeah of course there are some effects coming from the price effects I would say that the larger part of the 15% is definitely coming from volumes. i would say that the larger part of the 15% is definitely coming from volumes

Speaker 4: Okay, good. My final one is on CapEx. If you can update us on what to expect for 2026 and maybe also for 2027. Okay, good. okay good My final one is on CapEx. my final one is on capex If you can update us on what to expect for 2026 and maybe also for 2027. if you can update us on what to expect for 2026 and maybe also for 2027

Speaker 7: Yes. We commented that after Q4 being SEK 650 million-SEK 700 million for the full year 2026. We are still at that expectation, so SEK 650 million-SEK 700 million. Yes. yes We commented that after Q4 being SEK 650 million-SEK 700 million for the full year 2026. we commented that after q4 being sek 650 million-sek 700 million for the full year 2026 We are still at that expectation, so SEK 650 million-SEK 700 million. we are still at that expectation so sek 650 million-sek 700 million

Speaker 4: Okay. Good to know. Thank you. Okay. okay Good to know. good to know Thank you. thank you

Speaker 7: Thank you. Thank you. thank you

Speaker 5: Thank you for the questions there. They were all the callers we had. We have also had a question sent into us. Can you clarify what impact higher input material prices had on Q1 profitability? What magnitude of impact should we expect in Q2 and onwards? How does the impact differ between engineered and medical? Thank you for the questions there. thank you for the questions there They were all the callers we had. they were all the callers we had We have also had a question sent into us. we have also had a question sent into us Can you clarify what impact higher input material prices had on Q1 profitability? can you clarify what impact higher input material prices had on q1 profitability What magnitude of impact should we expect in Q2 and onwards? what magnitude of impact should we expect in q2 and onwards How does the impact differ between engineered and medical? how does the impact differ between engineered and medical

Speaker 7: Yeah. We have explained the math behind it and our best assumptions. The effects during Q1 were very limited, and it's an onward effect. We did say most of that is during Q2, and some will spill over into Q3 if it stands where it is right now. I think that is the explanation we can give in uncertain areas. Yeah. yeah We have explained the math behind it and our best assumptions. we have explained the math behind it and our best assumptions The effects during Q1 were very limited, and it's an onward effect. the effects during q1 were very limited and it's an onward effect We did say most of that is during Q2, and some will spill over into Q3 if it stands where it is right now. we did say most of that is during q2 and some will spill over into q3 if it stands where it is right now I think that is the explanation we can give in uncertain areas. i think that is the explanation we can give in uncertain areas

Speaker 5: Thank you for that. That was all the questions we had. Thank you to Nolato for presenting here today, and thank you all for tuning in and sending in questions and calling in. Thank you for that. thank you for that That was all the questions we had. that was all the questions we had Thank you to Nolato for presenting here today, and thank you all for tuning in and sending in questions and calling in. thank you to nolato for presenting here today and thank you all for tuning in and sending in questions and calling in

Speaker 3: Thank you all for your interest in Nolato. Thank you. Thank you all for your interest in Nolato. thank you all for your interest in nolato Thank you. thank you