Troax Group — Call Transcript 2026

Hi, everyone, and welcome to Troax Group's interim report for the first quarter 2026. My name is Martin Nyström, and I'm the President and CEO of the Group since close to two years. Without further ado, we will dive into the report, and after my presentation, we will follow up with a Q&A session, which we will moderate. If we start with the first quarter highlights, I'm very happy and very pleased that we had a record order intake in the Group's history. This growth is driven mainly by our acquisitions. In total, we had an order intake growth of 18% in the quarter. Also, our net sales increased, but not as much. also the net sales was driven by our recent acquisitions. Our order intake decreased year-over-year. However, it improved versus the fourth quarter. Sequentially, we saw a slight uptick also in our organic order intake. During the quarter, we had declining organic invoicing, mainly due to our project to close down our Chicago facility and ramp up our new facility in Nashville. This meant that we, during the quarter, were making the move and also ramping up and down. During the quarter, we have not reached the full pace at the beginning of the quarter. For the full quarter, we were not invoicing as much as a normal quarter, so to speak. We also saw our price increases that we put through in the fourth quarter due to raw material and energy and transportation. They have also started to come in positively, both to the sales number as well as to the margin in the quarter. I will get back to that through the presentation. On the market side, I would say the markets overall remain soft, and the demand remained weak. I would also say that due to the macroeconomics and geopolitics, it's very difficult to assess. This is largely as we saw with the previous quarterly report. On the positive note, I would say that we saw the demand improving through the quarter. The year started relatively slow, but month by month, the demand improved through the quarter. March was better than January. I would say very positive after a few bleak years on the warehousing side that we now start to see activity that we had in the second half of last year, turning into orders, particularly in Europe and North America. We're now seeing the automotive challenges that we have mainly in Europe and Asia, and this now impacted Troax Group in the first quarter of this year as well. All in all, our order intake grew by 18% and our total sales grew by 6%. If I move over to the EBITDA and our profitability, our profitability came in at 10.1% Adjusted EBITDA margin. Here the main drivers for this is our low organic volume, but also the ramp-up challenges that we've had both in North America as well as in Sweden after the move of our shelving facility from Poland to Sweden. I'm very happy to see that our gross margin came back and was in line with last year, and it's also a sequential improvement versus the fourth quarter. We did have increased sales and marketing costs, but on this side, I would say all of that stems from our added businesses on acquisitions. We have now started to identify additional cost synergies as we now move through and into the acquisition integration processes along the year. On the operational side, there are many moving parts in the group. The North American factory transfer is in its most intense phase, with the move, commissioning new equipment, training teams, et cetera. We're very busy with this move for the time being, both in the first quarter and going into the second quarter. We also, as part of this process of ramping up the new facility, we started the year relatively slow with a variety or a set of issues, but we gradually, through the quarter, improved our ability to deliver to our customers, which means that we left the first quarter with a good run rate of our deliveries. During the quarter, we've also ramped up our production in Sweden, so the first mesh is off the line, so to speak, after the transition from Poland. Here we've done a lot of good work, and we reinaugurated our factory during the first quarter. Here I'd say there is still a bit more on the efficiency side, as well as adding volume to this until we're fully up and running and fully where we need and want to be longer term. We have also done a strategic review of our Commercial Partitioning business with the manufacturing in the U.K. After this strategic review, we concluded that we are not a good owner and this does not fit the Group portfolio, which means that we have closed down this product line and this assortment, and we've also closed the manufacturing of this product line during the quarter. The cost for this were taken during 2025. If I move a little bit more into then the Group, I would say it's very clear that the three recent acquisitions that we made during the fourth quarter have strengthened both the portfolio as well as the growth potential. We concluded and closed the Vichnet acquisition in January 2026 as planned, and we do see strong solid demand, both for the flexible barrier side as well as for the data center safety solutions which these three acquisitions contribute well with. It's also clear that there are opportunities not only on the sales synergy side and sales side, there are also opportunities to work with cost as well as capital synergies as we move through the integration process. The contribution of the acquisitions in the fourth quarter were 21% of the Group total. Significant contribution, both strategic as well as financially to the Group. If I then move a bit more into the transformation activities that we have, as I said, we have ramped up the production unit in Värnamo after the transfer from Poland with a promising start. There is more to do on bringing more volume into this business, as well as bringing even more efficiency into this. This is a work that has been going on through Q1 but will continue into Q3 and Q4. The Commercial Partitioning business, as said, it is continued during the first quarter. The production transfer from Chicago to Portland is progressing at high intensity. In relation to the results and the performance of our North American operations, we've also during the quarter decided to make a leadership change in Americas to secure that we have focus on sales and operational execution and performance. If we then go more into the North American side, in the picture here, you'd see our new North American facility. It's located close to Nashville in Tennessee. It will start operating and produce the first products planned in May. We've now, during the first quarter, made sure that our delivery operations, our picking and packing operations to support our customers, has been ramped up. It's been a bit more problematic than we first foresaw. We made good progress during the first quarter, which means that we move into the second quarter at pretty much full pace and where it should be. At the same time, it means that we have not invoiced as much as we should have in the first quarter, and this will then come in the following quarter. The longer-term aim with this is, of course, that we improve our competitiveness. North America is currently the only place where we're not running fully automatic, and fully automatic in our business means more automation, less manual touchpoints, and for sure, a lot more cost efficiency into the manufacturing of our products or mesh products, I should say. The other reason why this is a very important strategic initiative for us is that we also need to bring higher capacity to our North American operations since we've outgrown our facility in Chicago. Moving over to shelving or racking the footprint optimization. We're completed with moving our machines and operations from Poland to Sweden. We've done that to improve the efficiency as well as simplify the offering and make it easier for the customers to pick and choose us. We are ramping this up and the communicated annual savings of EUR 5 million expected after ramp-up are still valid, and we're on a good way to make that come to fruition. On the picture here, you see a picture from the inauguration that we held in the first quarter where the governor of this region was cutting the ribbon. I thought that was a nice way to depict a project that we're very close or even have managed to finalize. If I then move over to the market side of this, and on the picture, you'd see the market development, and here we have depicted the organic order intakes, so the year-on-year comparison, and we have excluded FX. In total, we had -5% on the organic side, 18% in total, as I said before. If I start from a geographical point of view, Europe, 67% of our geographical exposure. We have a mixed picture between Northern Europe, which was down significantly, driven by the automotive sector directly and indirectly. Very positive to see in Northern Europe also that we have our warehousing segment growing for the first time in a quite long while. If we flip to Southern Europe, which was up 10% during the quarter, automotive was also challenged in southern part, but also here, warehousing construction was up. In total, we were up in southern part of Europe. If we move to what I think is the exclamation point of the quarter is the Americas, which is by now the smallest geographical region we have, but very strong order intake, 36% up, driven by both warehousing as well as construction, and I'd say also general industry. I would say it's a solid start of the year in Americas. Also in Americas, I would say that automotive, which is a challenge for us in Europe as well as in APAC, in Americas, automotive is flattish and not really down. Last but not least, in APAC, which is now 21% of our sales, we were down 31% in the quarter. Here, I would like you to note that we had a strong comparable quarter in the first quarter last year. Also here, the decline is driven mainly by China automotive, which after a very busy year last year, is having a slower development. If I then move into the different elements. If we look at the order intake, it grew from EUR 69.5 million to EUR 82 million in the quarter. If we look at the bridge, we had -5% of that coming from organic price volume, 25% structure. We had a negative FX effect of -2, taking us to 18% in total on order intake growth in the quarter. If I move over to sales, which had a slower development on the organic side, we moved from EUR 68.3 million to EUR 71.8 million, so an uptick of 5%. Here, the organic portion of this is -14%, mainly driven by our North American shortfall on the invoicing side, but also the fact that we, throughout last year, saw lower order and slower market in Europe. A combination of lower volumes in Europe as well as ramp-up issues in North America are the key drivers for the -14%. Here we have the structural component from our three acquisitions of 20% on the net sales side. We also here had an exchange rate effect of -2% in the quarter. If I flip over to the EBITA development, we came in at 10.1%. Here I would say that if we start with the gross margin, I think the gross margin in the quarter was fairly strong given the organic volumes. I think we're in striking distance with our informal target, despite the low volumes. I'd also say that our acquisitions contribute well to the overall group gross margin. If we then look to this from a profitability point of view, the lower volumes and the ramp-up issues also put pressure on the EBITA margin. Definitely the Americas transition add a decline to the performance. If I look specifically to Americas, we had several issues in the fourth quarter, and we reported some 300 basis points in the fourth quarter due to operational issues, transfer pricing. This gap has now shrunk to roughly 150 basis points instead of the 300. We're trending in the right direction in the first quarter. Given the low organic sales volumes, the sales and admin costs are relatively high in relation to net sales. It's pleasing to see that the underlying organic SG&A as part of this is now coming down and declining as per the savings projects that we initiated as well as concluded during the last year. If I move to operating cash flow, we had an operating free cash flow of EUR 4.5 million in the quarter. First quarter for us is usually a seasonally weak quarter for different reasons. Driving this downwards is the U.S. situation where we add some more working capital in terms of inventory to be able to complete the move. I would also say that the structural component also runs at a relatively higher working capital. This is something that we are planning and working on to getting more in line with where the Group has been historically on the structural side of this. EUR 4.5 million of free operating cash flow in the quarter. Moving over to the net debt development, here we came in at 2.7x for the quarter. The net debt increased as a consequence of the three acquisitions we made during the fourth quarter. At the same time as we have our rolling EBITDA measure coming down as the business shrunk last year. Both these two things contribute to the 2.7x performance in the first quarter. Our target remained to be below 2.5x over time on this one. If I then try to conclude the financials for the first quarter, order intake, sales, Adjusted EBITA, and net debt to EBITDA, I've already gone through. On the EPS side we came in at EUR 0.07 versus EUR 0.10 in the comparable quarter. If I then end with looking ahead, I think I'd like to reiterate that the market conditions remain uncertain. I do think we have saw some green shoots during the first quarter, and we are actively working with preparing to adapt whether this will now take off or whether we continue to be in a more challenging situation. We're actively working to prepare and adapt for either scenario. I think our strategy for profitable growth is unchanged. We are keeping the course, and I think it's a good proof point to look at the order intake in the quarter, looking at it from a total point of view. I also think it's good to see our broader portfolio focused on safety. I think that through the acquisitions, it's good to see strong demand, both on the flexible barrier side as well as the data center safety solutions that we got included from the acquisition of Vichnet. Very good start and strong solid demand on those. We are seeing the optimized factory structure starting to come through. We are seeing this in Europe, and we will, in the not-too-distant future, also see the benefits of the factory move in North America coming through as well during the second half of the year. We are continuing with our decentralized operation and continue to work on our processes and our tools to make sure that we are well-positioned now, and we're also well-positioned to grow when the market turns. With that, I would like to conclude the presentation part of this call, and we will now move into Q&A. As usual, raise your hand and we will make sure to unmute and un-mic you, and let you in. I see the first hand from Jonny Jin at SEB. Hi. Good afternoon, Martin. Hope you can hear me. Hi, Jonny. I have a couple of questions. Hi. Starting with the invoicing. We touched upon this, but the organic conversion seems to be on the low side here in the quarter. I know you mentioned— Mm-hmm —the ramp-up effect in the U.S. and the closure of business in the U.K. and such, but could you maybe elaborate the effect of these respectively, please? What was the effect of the delays in delivery in the U.S., for instance, in the quarter? Yeah. In the U.S., we moved our inventory from Chicago to Nashville. We moved that over the Christmas season. When we were planning to start ramping up, it takes some time to ramp up. The original plan was to take the backlog that we built up during the first half of the quarter and gain that back already in the quarter. Now we realized that we had some more ramp-up challenges than what we first anticipated. The impact on the sales side is somewhere between EUR 1.5 million-EUR 2 million in the quarter. Just to be clear on that, I think this is not lost sales in that sense. It's a timing and sequencing effect. As we've now ramped up our delivery capabilities, we will step by step eat that excess backlog back. Okay. EUR 1 million-EUR 2 million, that's from the U.S. What was the effect— Yes. —from the closure of U.K.? It's roughly EUR 1 million too, in the quarter. Okay. Yeah, that's clear. What was the annualized sales of the U.K. business here, which you now closed down? It's roughly EUR 10 million. Okay. Yeah, that's clear. Perfect. I want to move to the contribution from M&A. You mentioned it already, but it seems stronger than expected in the quarter. Maybe— Mm-hmm. —could you elaborate what is driving this strength from M&A? Are there any timing or such from the acquisitions you made, or is this a fair picture of the underlying performance of those acquisitions? No, I think it's fair to say that the demand for both wire trays data centers and barriers is robust. I don't think there is anything in the quarter here that stands out in a very positive way or in a very negative way. I think it's a fair reflection of a Q1 outcome, you could say. Yeah, well, I would probably take this to the bank and not put sugar or salt to it, so to speak. Okay. Yeah. Okay. Interesting. Just one on the OpEx cost side. I know we touched upon this also, but it seems to be on the higher side, even if we adjust for the one-offs. Mm-hmm. Is there something special that happened on the operating expense side in this quarter, or would you say that this is sort of the expected fair run rate we could expect for the coming quarter as well on the operating expense side? Yeah, I do think we are still on the high side. We plan to conclude one phase of our digitalization project by late 2025. This has proven to be more complicated than what we thought, which means that we're also carrying costs for this project in the first quarter here as well, and we will continue to carry some of these costs also into the second quarter, and aim for finalization on this. I would say the work to put some key digital tools here are also key to be able to make more cost savings on the SG&A side going forward and as a next step. We're still carrying a bit of extra weight compared to the original plan here in the first quarter. Could you try to quantify the extra weight a little bit closer? We're talking a few hundred thousand euros. Okay, that's fair. Just one final on outlook and demand. I know you mentioned reports some signs of improvement at the end of the quarter, and you talked about they picked up momentum throughout the quarter, I think as well. How should we interpret this? Are you seeing better orders already now at the start of Q2? Or is this—what are you basing those comments on? Yeah, I think we saw a gradual improvement throughout quarter one, and we haven't seen anything beginning of April that's different to the end of quarter one. That would be one reflection from my end. The second reflection, I think, is also if we look at the composition of that order intake. We've had a couple of really tough years on the warehousing side 2022, 2023, sorry—2023, 2024, and 2025. We do see some things starting to move here. We had more activity in the second half of last year. We think we see—we have more of order intake in that segment now in the first quarter. That's good news, of course, for us since this is the largest segment for us. Yeah, I understand. Just one final question, sorry to squeeze in. I saw a lot of questions, but just in North America, you mentioned strong order momentum there, and I think you said also it's driven by warehouse, but also general industry. There have been some other companies here reporting, stating that industrial CapEx is a little bit worse here, sentiment after the Middle East crisis and such. Mm-hmm. Is this something you also mention overseeing or is there a few customers that drive this momentum or what is driving that, would you say? Yeah, I would say, I think on the warehousing side, Q1 was more robust in a sense that we had a more broad-based, you could say, activity as well as orders. On the general side, I think it's likely more our customer mix than something that is broad-based in describing the market. Okay. Yeah, that's fair. We'll see. Thank you. That was all from me. Thanks, Jonny. Anna Widström is next. Yes. Hi, Martin. I hope you can hear me as well. Hi, Anna. Loud and clear. Perfect. My first question is just if you could give us some details on the price component in the order intake, if you have that for the whole Group or if you could give us some details per region. Yeah. Overall, you could look at it as Europe and Asia fairly stable as price component in the order intake. In the U.S., we're looking at the double-digit number to compensate for material transportation, et cetera. If you weigh that together, you'll get a few percentage point on the order intake. Okay, perfect. Just going back to the M&A contribution, as stated previously, it's very solid. Could we get some assessment of how much of the invoicing or orders that are specifically from Vichnet? Yeah. Vichnet would be a little bit north of between 50% and 60%. Okay, perfect. Thank you. Just going into, because as it has a Chinese exposure, it's rather fair to maybe assume that it has a different kind of seasonality than— Mm-hmm. —the remaining parts of Troax. Mm-hmm. So just how should we think about Vichnet's activity going into second quarter and the remaining parts? Maybe also, if we can go into the details on how the acquisitions affected the operating margin. You said that they had a positive contribution on the gross margin. Mm-hmm. How does it look on the operating margin as well? Yeah. If we start with the seasonality question, and I would think, obviously with Vichnet, a lot more of that business is an APAC business. That follows more the Chinese annual cycle, if you will. That, at least from how we used to know it, as Q1 is usually a little weaker than the other quarters. If we look at Europe as at the other end of the scale, the pattern is slightly different. Usually the first quarter in APAC is the weakest one from a volume and profitability point of view. I think we probably need a few more quarters under the belt with Vichnet to see whether the business is performing or behaving just like that. Mm-hmm. I think it's probably a fair assumption to say that it will behave like we know other APAC businesses or Chinese businesses. On the operating margin side, it's true that our acquisitions are stronger in relative terms on the gross margin side. At the same time, all these three are growth cases, which means that the proportional SG&A might still be on the high side. In the specific quarter, the structural component was over average compared to the Group. It's been— Mm-hmm. —accretive, if you will. Okay, perfect. Maybe you could give us some details on how the growth momentum, both for Vichnet but also your own data center exposure? Yeah, no, I'm happy to do that. I think we've had some good progress the last couple of years. We are relatively new into this. I think the data center business, both on racks as well as on wire trays, is one of the growth drivers for Vichnet. I think the development, the momentum in this business is good, and it's good in our structural part, and it's also quite good on the organic side. From that point of view, it's a good growth potential and also a growth driver, even though it's from a low base still. Okay, perfect. Just thinking about the backlog then that you have in the U.S. As you seem to be quite confident that the delivery issues are fixed into Q2, should we be able to see full delivery on the backlog, or should this maybe be viewed as gradually throughout the second and the third quarter? Yeah, I think we should be delivering what the customers have ordered from us. We will eat that backlog mainly in Q2. Perhaps something will then be squeezed and move into Q3. We should be able to see that invoicing coming through during the course of the year. Okay, perfect. Just the final one from my side on the warehousing exposure. The increased activity that you're seeing, is this relating to sort of base business within small and mid-sized orders, or has activity on larger orders increased as well? It's a bit of both, I would say. The pipeline on warehousing is a mix of, I think what we haven't seen in the past couple of years has been the large projects. We now see them come back, but I would also say that small, medium, as well as mid-sized, is also more active. I'd say it's in all three categories, if you will. Okay, perfect. That's all my questions. Thank you. Thanks, Anna. We go with Gustav Berneblad. Yes, good afternoon. It's Gustav here from Nordea. Good afternoon, Gustav. Good afternoon. I thought maybe just to start off on the backlog story just for Northern Europe in conjunction with the facility consolidation. Are there any backlogs to talk about there, given that you say that hopefully you are out to direct the facility towards more volumes, et cetera? There was a bit of backlog that we decided not to produce in Poland and start ramping up in Sweden. There is a bit of backlog from that. I wouldn't say we carry a big backlog in this. This is win the orders and produce it, and I'd say this, hence we have a lower invoicing than what you could say is normalized in this business. This impacted Q1 slightly as well. That's perfect. Just thinking about if you could reason a bit on the margin and the cost. How should we think sequentially from Q1 into Q2, in terms of what type of costs will ease? You will close down, if you just take North America, you'll likely close down and you have less personnel there. You will have eventually dual rents, et cetera. Are there anything to do in other areas that are worth highlighting? I think you nailed the two big ones. For sure, we are having our most intense months here now, so we've had a very intense quarter one. We'll continue to drive a very intense work to get not only the logistics in North America, but also the machinery and the equipment. At one point, we can move from running a dual operation, which we have currently in the U.S., into one more optimal, and that will happen during the second half of the second quarter. Of course, with that, some of the double costs will naturally decrease as our employees in Chicago will not have a factory to come to in that sense. That will be, I would say, the main difference here in the second quarter. Yeah. Okay, perfect. That's great. Just on your comments in the report regarding cost synergies in terms of the acquisitions, are these material and how should we think about the timing? Best guess, I guess. I think I'll probably have to get back on this topic with the second quarter report. We're one quarter into the integration work, but I think at first glance, there are a few areas of overlap. Obviously, we can look at the company structure, we can look at admin structures, we can look at how we treat, for example, inventories on the capital side. I wouldn't dare to quantify how much this is today. I'll promise you to get back on this when we have a bit more firm view and data on this, Gustav. Oh, that's fair. Thank you. Just one last clarifying question, just on the Commercial Partitioning here. Did it have any negative impact in the quarter at all? It has negative impact in, you could say, in two ways. The first one is that we obviously stopped taking orders. So which means that when you compare organic order intake, you will have an artificial effect of that the order intake is not really measuring this apples to apples. You can use the annual figure and divide by four. You get a rough idea what that order intake impact is. The second one is on the results and sales. Since we stopped taking orders somewhere late last year, it also means that we have less volume to invoice during the first quarter here. As we move into the second quarter when we've discontinued the operation, obviously, you will have that effect as lower order intake and lower sales organically. However, this business was diluted to the Group average, which means that it should also be seen as a positive thing to the Group result, if you look at the margin. Yeah, yeah, perfect. We saw that positive impact from 1st of January, basically. No, you will see that impact from the second quarter. Okay. That's very clear. Thank you very much. Thank you. Daniel Lindkvist, please go ahead. Thank you, Martin. I've had most of my questions answered by this point, but just a few ones from my side. If we look at the timeframe in your order book, we've gotten used now to conversion in the upcoming quarter, more or less, for quite some time. I'm in particular interested in the U.S. order intake and delivery structure for that one, and also on the acquired units in particular. Yeah. If we look at the U.S., in the first quarter, we had a few larger projects. If you look at usually you convert with a quarter's delay or something, it means that the order intake in the first quarter will have a somewhat longer conversion rate, which then impacts second, third quarter. If we look at the structural part, the business that relates to the data center business also runs at a slightly longer conversion cycle than the, you could say, the bread-and-butter business that you're used to. Okay, cool. If we just then add how much is left roughly of the backlog from the U.S. now? Stemming from the move quarter four, quarter one, it's roughly EUR 2 million. Roughly EUR 2 million. Perfect. If we just look at them, the acquisitions really surprised me in Q1, and it seems like these are bigger operations than we in the market perceived. At the same time, in Q1 we had the Chinese New Year. One would guess that the flexible barrier side would have been the stronger part in Q1 and maybe then in the opposite situation in Q2. Is that a fair assumption? Is there any difference between the gross margins in the plastic barriers and in Vichnet just to bring with us going forward? I think conceptually you are right with the quarterly sequencing on barriers and on the Vichnet acquisition. In theory, you're right. I think we're only one quarter into this acquisition, so I'd like to be a little careful on that. Conceptually, I'd agree with you, Daniel, on that. On the gross margin side, all three acquisitions are delivering what I consider to be healthy gross margins and healthy gross profit. I think it's also an outcome of the fact that we're delivering solid value to our customers. They're all bringing value products to the customer. They are all accretive to, you could say, Group average on the gross margin from a gross margin point of view. Okay, Vichnet is also a higher gross margin business than the average? Yeah. Okay. Yes. Cool. Just on the automotive side, I mean, you've delivered on old projects for some time, but the market has in general been weak. Or should we read it as the market has become weaker now? What's the split between the projects you've had and delivered on and the market becoming weaker or the opposite? Yeah. I think what we are now experiencing at our end is we are pretty late into the cycle. Obviously, a lot of the car makers and other suppliers to the car industry might have suffered a bit earlier than we have. I think on the order intake side, we're now seeing kind of the reality of where automotive is. From that point of view, this is one of the first quarters where we're not filling the pipeline with larger new projects. I wouldn't say necessarily that the market might have gone a lot worse in Q1 versus Q4, but I think now it appears at our end, what that looks like in terms of investment into our product niches. Okay, cool. On the gross margin side, are there any effects from the cost savings from Natom that are visible in Q1, or should we expect those going forward in conjunction with higher volumes? If we look at the fixed costs that we have taken out of Poland, they are part of this, and they are also visible in the result. However, it's not to the full swing yet, since the volumes are not completely ramped up. Obviously this is also a volume game, so some of those run rate savings will also come with more volume. That impact is not seen yet in the first quarter. That's still to come, but we're on a good way to get there. Perfect. Just finally, there are many out there that discuss this in terms of a company that should have a normalization or getting closer to it by 2027. Just from your side, is there anything that contradicts this report or from what you see now with things going on? It's very difficult to predict the future, I've learned. I think the big defining parameter here will be what happens in the Middle East if this gets prolonged and whether the world economy gets dragged into something that is slower for longer. I guess my crystal ball on this is just as clear or as cloudy as yours. I'm not sure I'd like to make any statements on this one, but nothing I would say from the first quarter specifically contradicts, you could say, your narrative. Yeah. I guess from my side, it's you have an insight in the projects and the projects that are postponed and so on, and the project sizes that we're discussing. In that sense, has there been many postponements? To date, we've seen very little of any change in that comparing to how we've been trending the last, well, three to six months, depending on segment. Perfect. Thank you so much, Martin. That's all from my side. Thanks, Daniel. Okay. I don't see any more hands in the air, which means that we will bring this interim presentation and earnings call to an end. Thanks a lot everyone for listening in, and if I don't see you before, I'll see you in a quarter's time. Thank you and bye-bye.

Speaker 5: Hi, everyone, and welcome to Troax Group's interim report for the first quarter 2026. My name is Martin Nyström, and I'm the President and CEO of the Group since close to two years. Without further ado, we will dive into the report, and after my presentation, we will follow up with a Q&A session, which we will moderate. If we start with the first quarter highlights, I'm very happy and very pleased that we had a record order intake in the Group's history. This growth is driven mainly by our acquisitions. In total, we had an order intake growth of 18% in the quarter. Also, our net sales increased, but not as much. also the net sales was driven by our recent acquisitions. Our order intake decreased year-over-year. However, it improved versus the fourth quarter. Hi, everyone, and welcome to Troax Group's interim report for the first quarter 2026. hi everyone and welcome to troax group's interim report for the first quarter 2026 My name is Martin Nyström, and I'm the President and CEO of the Group since close to two years. my name is martin nyström and i'm the president and ceo of the group since close to two years Without further ado, we will dive into the report, and after my presentation, we will follow up with a Q&A session, which we will moderate. without further ado we will dive into the report and after my presentation we will follow up with a q&a session which we will moderate If we start with the first quarter highlights, I'm very happy and very pleased that we had a record order intake in the Group's history. if we start with the first quarter highlights i'm very happy and very pleased that we had a record order intake in the group's history This growth is driven mainly by our acquisitions. this growth is driven mainly by our acquisitions In total, we had an order intake growth of 18% in the quarter. in total we had an order intake growth of 18% in the quarter Also, our net sales increased, but not as much. also the net sales was driven by our recent acquisitions. also our net sales increased but not as much also the net sales was driven by our recent acquisitions Our order intake decreased year-over-year. our order intake decreased year-over-year However, it improved versus the fourth quarter. however it improved versus the fourth quarter Sequentially, we saw a slight uptick also in our organic order intake. During the quarter, we had declining organic invoicing, mainly due to our project to close down our Chicago facility and ramp up our new facility in Nashville. This meant that we, during the quarter, were making the move and also ramping up and down. During the quarter, we have not reached the full pace at the beginning of the quarter. For the full quarter, we were not invoicing as much as a normal quarter, so to speak. We also saw our price increases that we put through in the fourth quarter due to raw material and energy and transportation. They have also started to come in positively, both to the sales number as well as to the margin in the quarter. I will get back to that through the presentation. Sequentially, we saw a slight uptick also in our organic order intake. sequentially we saw a slight uptick also in our organic order intake During the quarter, we had declining organic invoicing, mainly due to our project to close down our Chicago facility and ramp up our new facility in Nashville. during the quarter we had declining organic invoicing mainly due to our project to close down our chicago facility and ramp up our new facility in nashville This meant that we, during the quarter, were making the move and also ramping up and down. this meant that we during the quarter were making the move and also ramping up and down During the quarter, we have not reached the full pace at the beginning of the quarter. during the quarter we have not reached the full pace at the beginning of the quarter For the full quarter, we were not invoicing as much as a normal quarter, so to speak. for the full quarter we were not invoicing as much as a normal quarter so to speak We also saw our price increases that we put through in the fourth quarter due to raw material and energy and transportation. we also saw our price increases that we put through in the fourth quarter due to raw material and energy and transportation They have also started to come in positively, both to the sales number as well as to the margin in the quarter. they have also started to come in positively both to the sales number as well as to the margin in the quarter I will get back to that through the presentation. i will get back to that through the presentation On the market side, I would say the markets overall remain soft, and the demand remained weak. I would also say that due to the macroeconomics and geopolitics, it's very difficult to assess. This is largely as we saw with the previous quarterly report. On the positive note, I would say that we saw the demand improving through the quarter. The year started relatively slow, but month by month, the demand improved through the quarter. March was better than January. I would say very positive after a few bleak years on the warehousing side that we now start to see activity that we had in the second half of last year, turning into orders, particularly in Europe and North America. On the market side, I would say the markets overall remain soft, and the demand remained weak. on the market side i would say the markets overall remain soft and the demand remained weak I would also say that due to the macroeconomics and geopolitics, it's very difficult to assess. i would also say that due to the macroeconomics and geopolitics it's very difficult to assess This is largely as we saw with the previous quarterly report. this is largely as we saw with the previous quarterly report On the positive note, I would say that we saw the demand improving through the quarter. on the positive note i would say that we saw the demand improving through the quarter The year started relatively slow, but month by month, the demand improved through the quarter. the year started relatively slow but month by month the demand improved through the quarter March was better than January. march was better than january I would say very positive after a few bleak years on the warehousing side that we now start to see activity that we had in the second half of last year, turning into orders, particularly in Europe and North America. i would say very positive after a few bleak years on the warehousing side that we now start to see activity that we had in the second half of last year turning into orders particularly in europe and north america We're now seeing the automotive challenges that we have mainly in Europe and Asia, and this now impacted Troax Group in the first quarter of this year as well. All in all, our order intake grew by 18% and our total sales grew by 6%. If I move over to the EBITDA and our profitability, our profitability came in at 10.1% Adjusted EBITDA margin. Here the main drivers for this is our low organic volume, but also the ramp-up challenges that we've had both in North America as well as in Sweden after the move of our shelving facility from Poland to Sweden. I'm very happy to see that our gross margin came back and was in line with last year, and it's also a sequential improvement versus the fourth quarter. We're now seeing the automotive challenges that we have mainly in Europe and Asia, and this now impacted Troax Group in the first quarter of this year as well. we're now seeing the automotive challenges that we have mainly in europe and asia and this now impacted troax group in the first quarter of this year as well All in all, our order intake grew by 18% and our total sales grew by 6%. all in all our order intake grew by 18% and our total sales grew by 6% If I move over to the EBITDA and our profitability, our profitability came in at 10.1% Adjusted EBITDA margin. if i move over to the ebitda and our profitability our profitability came in at 10.1% adjusted ebitda margin Here the main drivers for this is our low organic volume, but also the ramp-up challenges that we've had both in North America as well as in Sweden after the move of our shelving facility from Poland to Sweden. here the main drivers for this is our low organic volume but also the ramp-up challenges that we've had both in north america as well as in sweden after the move of our shelving facility from poland to sweden I'm very happy to see that our gross margin came back and was in line with last year, and it's also a sequential improvement versus the fourth quarter. i'm very happy to see that our gross margin came back and was in line with last year and it's also a sequential improvement versus the fourth quarter We did have increased sales and marketing costs, but on this side, I would say all of that stems from our added businesses on acquisitions. We have now started to identify additional cost synergies as we now move through and into the acquisition integration processes along the year. On the operational side, there are many moving parts in the group. The North American factory transfer is in its most intense phase, with the move, commissioning new equipment, training teams, et cetera. We're very busy with this move for the time being, both in the first quarter and going into the second quarter. We did have increased sales and marketing costs, but on this side, I would say all of that stems from our added businesses on acquisitions. we did have increased sales and marketing costs but on this side i would say all of that stems from our added businesses on acquisitions We have now started to identify additional cost synergies as we now move through and into the acquisition integration processes along the year. we have now started to identify additional cost synergies as we now move through and into the acquisition integration processes along the year On the operational side, there are many moving parts in the group. on the operational side there are many moving parts in the group The North American factory transfer is in its most intense phase, with the move, commissioning new equipment, training teams, et cetera. the north american factory transfer is in its most intense phase with the move commissioning new equipment training teams et cetera We're very busy with this move for the time being, both in the first quarter and going into the second quarter. we're very busy with this move for the time being both in the first quarter and going into the second quarter We also, as part of this process of ramping up the new facility, we started the year relatively slow with a variety or a set of issues, but we gradually, through the quarter, improved our ability to deliver to our customers, which means that we left the first quarter with a good run rate of our deliveries. During the quarter, we've also ramped up our production in Sweden, so the first mesh is off the line, so to speak, after the transition from Poland. Here we've done a lot of good work, and we reinaugurated our factory during the first quarter. Here I'd say there is still a bit more on the efficiency side, as well as adding volume to this until we're fully up and running and fully where we need and want to be longer term. We also, as part of this process of ramping up the new facility, we started the year relatively slow with a variety or a set of issues, but we gradually, through the quarter, improved our ability to deliver to our customers, which means that we left the first quarter with a good run rate of our deliveries. we also as part of this process of ramping up the new facility we started the year relatively slow with a variety or a set of issues but we gradually through the quarter improved our ability to deliver to our customers which means that we left the first quarter with a good run rate of our deliveries During the quarter, we've also ramped up our production in Sweden, so the first mesh is off the line, so to speak, after the transition from Poland. during the quarter we've also ramped up our production in sweden so the first mesh is off the line so to speak after the transition from poland Here we've done a lot of good work, and we reinaugurated our factory during the first quarter. here we've done a lot of good work and we reinaugurated our factory during the first quarter Here I'd say there is still a bit more on the efficiency side, as well as adding volume to this until we're fully up and running and fully where we need and want to be longer term. here i'd say there is still a bit more on the efficiency side as well as adding volume to this until we're fully up and running and fully where we need and want to be longer term We have also done a strategic review of our Commercial Partitioning business with the manufacturing in the U.K. After this strategic review, we concluded that we are not a good owner and this does not fit the Group portfolio, which means that we have closed down this product line and this assortment, and we've also closed the manufacturing of this product line during the quarter. The cost for this were taken during 2025. If I move a little bit more into then the Group, I would say it's very clear that the three recent acquisitions that we made during the fourth quarter have strengthened both the portfolio as well as the growth potential. We have also done a strategic review of our Commercial Partitioning business with the manufacturing in the U.K. we have also done a strategic review of our commercial partitioning business with the manufacturing in the u.k After this strategic review, we concluded that we are not a good owner and this does not fit the Group portfolio, which means that we have closed down this product line and this assortment, and we've also closed the manufacturing of this product line during the quarter. The cost for this were taken during 2025. after this strategic review we concluded that we are not a good owner and this does not fit the group portfolio which means that we have closed down this product line and this assortment and we've also closed the manufacturing of this product line during the quarter. the cost for this were taken during 2025 If I move a little bit more into then the Group, I would say it's very clear that the three recent acquisitions that we made during the fourth quarter have strengthened both the portfolio as well as the growth potential. if i move a little bit more into then the group i would say it's very clear that the three recent acquisitions that we made during the fourth quarter have strengthened both the portfolio as well as the growth potential We concluded and closed the Vichnet acquisition in January 2026 as planned, and we do see strong solid demand, both for the flexible barrier side as well as for the data center safety solutions which these three acquisitions contribute well with. It's also clear that there are opportunities not only on the sales synergy side and sales side, there are also opportunities to work with cost as well as capital synergies as we move through the integration process. The contribution of the acquisitions in the fourth quarter were 21% of the Group total. Significant contribution, both strategic as well as financially to the Group. If I then move a bit more into the transformation activities that we have, as I said, we have ramped up the production unit in Värnamo after the transfer from Poland with a promising start. We concluded and closed the Vichnet acquisition in January 2026 as planned, and we do see strong solid demand, both for the flexible barrier side as well as for the data center safety solutions which these three acquisitions contribute well with. we concluded and closed the vichnet acquisition in january 2026 as planned and we do see strong solid demand both for the flexible barrier side as well as for the data center safety solutions which these three acquisitions contribute well with It's also clear that there are opportunities not only on the sales synergy side and sales side, there are also opportunities to work with cost as well as capital synergies as we move through the integration process. it's also clear that there are opportunities not only on the sales synergy side and sales side there are also opportunities to work with cost as well as capital synergies as we move through the integration process The contribution of the acquisitions in the fourth quarter were 21% of the Group total. the contribution of the acquisitions in the fourth quarter were 21% of the group total Significant contribution, both strategic as well as financially to the Group. significant contribution both strategic as well as financially to the group If I then move a bit more into the transformation activities that we have, as I said, we have ramped up the production unit in Värnamo after the transfer from Poland with a promising start. if i then move a bit more into the transformation activities that we have as i said we have ramped up the production unit in värnamo after the transfer from poland with a promising start There is more to do on bringing more volume into this business, as well as bringing even more efficiency into this. This is a work that has been going on through Q1 but will continue into Q3 and Q4. The Commercial Partitioning business, as said, it is continued during the first quarter. The production transfer from Chicago to Portland is progressing at high intensity. In relation to the results and the performance of our North American operations, we've also during the quarter decided to make a leadership change in Americas to secure that we have focus on sales and operational execution and performance. If we then go more into the North American side, in the picture here, you'd see our new North American facility. It's located close to Nashville in Tennessee. It will start operating and produce the first products planned in May. There is more to do on bringing more volume into this business, as well as bringing even more efficiency into this. there is more to do on bringing more volume into this business as well as bringing even more efficiency into this This is a work that has been going on through Q1 but will continue into Q3 and Q4. this is a work that has been going on through q1 but will continue into q3 and q4 The Commercial Partitioning business, as said, it is continued during the first quarter. the commercial partitioning business as said it is continued during the first quarter The production transfer from Chicago to Portland is progressing at high intensity. the production transfer from chicago to portland is progressing at high intensity In relation to the results and the performance of our North American operations, we've also during the quarter decided to make a leadership change in Americas to secure that we have focus on sales and operational execution and performance. in relation to the results and the performance of our north american operations we've also during the quarter decided to make a leadership change in americas to secure that we have focus on sales and operational execution and performance If we then go more into the North American side, in the picture here, you'd see our new North American facility. if we then go more into the north american side in the picture here you'd see our new north american facility It's located close to Nashville in Tennessee. it's located close to nashville in tennessee It will start operating and produce the first products planned in May. it will start operating and produce the first products planned in may We've now, during the first quarter, made sure that our delivery operations, our picking and packing operations to support our customers, has been ramped up. It's been a bit more problematic than we first foresaw. We made good progress during the first quarter, which means that we move into the second quarter at pretty much full pace and where it should be. At the same time, it means that we have not invoiced as much as we should have in the first quarter, and this will then come in the following quarter. The longer-term aim with this is, of course, that we improve our competitiveness. We've now, during the first quarter, made sure that our delivery operations, our picking and packing operations to support our customers, has been ramped up. we've now during the first quarter made sure that our delivery operations our picking and packing operations to support our customers has been ramped up It's been a bit more problematic than we first foresaw. it's been a bit more problematic than we first foresaw We made good progress during the first quarter, which means that we move into the second quarter at pretty much full pace and where it should be. we made good progress during the first quarter which means that we move into the second quarter at pretty much full pace and where it should be At the same time, it means that we have not invoiced as much as we should have in the first quarter, and this will then come in the following quarter. at the same time it means that we have not invoiced as much as we should have in the first quarter and this will then come in the following quarter The longer-term aim with this is, of course, that we improve our competitiveness. the longer-term aim with this is of course that we improve our competitiveness North America is currently the only place where we're not running fully automatic, and fully automatic in our business means more automation, less manual touchpoints, and for sure, a lot more cost efficiency into the manufacturing of our products or mesh products, I should say. The other reason why this is a very important strategic initiative for us is that we also need to bring higher capacity to our North American operations since we've outgrown our facility in Chicago. Moving over to shelving or racking the footprint optimization. We're completed with moving our machines and operations from Poland to Sweden. We've done that to improve the efficiency as well as simplify the offering and make it easier for the customers to pick and choose us. North America is currently the only place where we're not running fully automatic, and fully automatic in our business means more automation, less manual touchpoints, and for sure, a lot more cost efficiency into the manufacturing of our products or mesh products, I should say. north america is currently the only place where we're not running fully automatic and fully automatic in our business means more automation less manual touchpoints and for sure a lot more cost efficiency into the manufacturing of our products or mesh products i should say The other reason why this is a very important strategic initiative for us is that we also need to bring higher capacity to our North American operations since we've outgrown our facility in Chicago. the other reason why this is a very important strategic initiative for us is that we also need to bring higher capacity to our north american operations since we've outgrown our facility in chicago Moving over to shelving or racking the footprint optimization. moving over to shelving or racking the footprint optimization We're completed with moving our machines and operations from Poland to Sweden. we're completed with moving our machines and operations from poland to sweden We've done that to improve the efficiency as well as simplify the offering and make it easier for the customers to pick and choose us. we've done that to improve the efficiency as well as simplify the offering and make it easier for the customers to pick and choose us We are ramping this up and the communicated annual savings of EUR 5 million expected after ramp-up are still valid, and we're on a good way to make that come to fruition. On the picture here, you see a picture from the inauguration that we held in the first quarter where the governor of this region was cutting the ribbon. I thought that was a nice way to depict a project that we're very close or even have managed to finalize. If I then move over to the market side of this, and on the picture, you'd see the market development, and here we have depicted the organic order intakes, so the year-on-year comparison, and we have excluded FX. In total, we had -5% on the organic side, 18% in total, as I said before. We are ramping this up and the communicated annual savings of EUR 5 million expected after ramp-up are still valid, and we're on a good way to make that come to fruition. we are ramping this up and the communicated annual savings of eur 5 million expected after ramp-up are still valid and we're on a good way to make that come to fruition On the picture here, you see a picture from the inauguration that we held in the first quarter where the governor of this region was cutting the ribbon. on the picture here you see a picture from the inauguration that we held in the first quarter where the governor of this region was cutting the ribbon I thought that was a nice way to depict a project that we're very close or even have managed to finalize. i thought that was a nice way to depict a project that we're very close or even have managed to finalize If I then move over to the market side of this, and on the picture, you'd see the market development, and here we have depicted the organic order intakes, so the year-on-year comparison, and we have excluded FX. if i then move over to the market side of this and on the picture you'd see the market development and here we have depicted the organic order intakes so the year-on-year comparison and we have excluded fx In total, we had -5% on the organic side, 18% in total, as I said before. in total we had -5% on the organic side 18% in total as i said before If I start from a geographical point of view, Europe, 67% of our geographical exposure. We have a mixed picture between Northern Europe, which was down significantly, driven by the automotive sector directly and indirectly. Very positive to see in Northern Europe also that we have our warehousing segment growing for the first time in a quite long while. If we flip to Southern Europe, which was up 10% during the quarter, automotive was also challenged in southern part, but also here, warehousing construction was up. In total, we were up in southern part of Europe. If we move to what I think is the exclamation point of the quarter is the Americas, which is by now the smallest geographical region we have, but very strong order intake, 36% up, driven by both warehousing as well as construction, and I'd say also general industry. If I start from a geographical point of view, Europe, 67% of our geographical exposure. if i start from a geographical point of view europe 67% of our geographical exposure We have a mixed picture between Northern Europe, which was down significantly, driven by the automotive sector directly and indirectly. we have a mixed picture between northern europe which was down significantly driven by the automotive sector directly and indirectly Very positive to see in Northern Europe also that we have our warehousing segment growing for the first time in a quite long while. very positive to see in northern europe also that we have our warehousing segment growing for the first time in a quite long while If we flip to Southern Europe, which was up 10% during the quarter, automotive was also challenged in southern part, but also here, warehousing construction was up. if we flip to southern europe which was up 10% during the quarter automotive was also challenged in southern part but also here warehousing construction was up In total, we were up in southern part of Europe. in total we were up in southern part of europe If we move to what I think is the exclamation point of the quarter is the Americas, which is by now the smallest geographical region we have, but very strong order intake, 36% up, driven by both warehousing as well as construction, and I'd say also general industry. if we move to what i think is the exclamation point of the quarter is the americas which is by now the smallest geographical region we have but very strong order intake 36% up driven by both warehousing as well as construction and i'd say also general industry I would say it's a solid start of the year in Americas. Also in Americas, I would say that automotive, which is a challenge for us in Europe as well as in APAC, in Americas, automotive is flattish and not really down. Last but not least, in APAC, which is now 21% of our sales, we were down 31% in the quarter. Here, I would like you to note that we had a strong comparable quarter in the first quarter last year. Also here, the decline is driven mainly by China automotive, which after a very busy year last year, is having a slower development. If I then move into the different elements. If we look at the order intake, it grew from EUR 69.5 million to EUR 82 million in the quarter. I would say it's a solid start of the year in Americas. i would say it's a solid start of the year in americas Also in Americas, I would say that automotive, which is a challenge for us in Europe as well as in APAC, in Americas, automotive is flattish and not really down. also in americas i would say that automotive which is a challenge for us in europe as well as in apac in americas automotive is flattish and not really down Last but not least, in APAC, which is now 21% of our sales, we were down 31% in the quarter. last but not least in apac which is now 21% of our sales we were down 31% in the quarter Here, I would like you to note that we had a strong comparable quarter in the first quarter last year. here i would like you to note that we had a strong comparable quarter in the first quarter last year Also here, the decline is driven mainly by China automotive, which after a very busy year last year, is having a slower development. also here the decline is driven mainly by china automotive which after a very busy year last year is having a slower development If I then move into the different elements. if i then move into the different elements If we look at the order intake, it grew from EUR 69.5 million to EUR 82 million in the quarter. if we look at the order intake it grew from eur 69.5 million to eur 82 million in the quarter If we look at the bridge, we had -5% of that coming from organic price volume, 25% structure. We had a negative FX effect of -2, taking us to 18% in total on order intake growth in the quarter. If I move over to sales, which had a slower development on the organic side, we moved from EUR 68.3 million to EUR 71.8 million, so an uptick of 5%. Here, the organic portion of this is -14%, mainly driven by our North American shortfall on the invoicing side, but also the fact that we, throughout last year, saw lower order and slower market in Europe. A combination of lower volumes in Europe as well as ramp-up issues in North America are the key drivers for the -14%. Here we have the structural component from our three acquisitions of 20% on the net sales side. If we look at the bridge, we had -5% of that coming from organic price volume, 25% structure. if we look at the bridge we had -5% of that coming from organic price volume 25% structure We had a negative FX effect of -2, taking us to 18% in total on order intake growth in the quarter. we had a negative fx effect of -2 taking us to 18% in total on order intake growth in the quarter If I move over to sales, which had a slower development on the organic side, we moved from EUR 68.3 million to EUR 71.8 million, so an uptick of 5%. if i move over to sales which had a slower development on the organic side we moved from eur 68.3 million to eur 71.8 million so an uptick of 5% Here, the organic portion of this is -14%, mainly driven by our North American shortfall on the invoicing side, but also the fact that we, throughout last year, saw lower order and slower market in Europe. here the organic portion of this is -14% mainly driven by our north american shortfall on the invoicing side but also the fact that we throughout last year saw lower order and slower market in europe A combination of lower volumes in Europe as well as ramp-up issues in North America are the key drivers for the -14%. a combination of lower volumes in europe as well as ramp-up issues in north america are the key drivers for the -14% Here we have the structural component from our three acquisitions of 20% on the net sales side. here we have the structural component from our three acquisitions of 20% on the net sales side We also here had an exchange rate effect of -2% in the quarter. If I flip over to the EBITA development, we came in at 10.1%. Here I would say that if we start with the gross margin, I think the gross margin in the quarter was fairly strong given the organic volumes. I think we're in striking distance with our informal target, despite the low volumes. I'd also say that our acquisitions contribute well to the overall group gross margin. If we then look to this from a profitability point of view, the lower volumes and the ramp-up issues also put pressure on the EBITA margin. Definitely the Americas transition add a decline to the performance. We also here had an exchange rate effect of -2% in the quarter. we also here had an exchange rate effect of -2% in the quarter If I flip over to the EBITA development, we came in at 10.1%. if i flip over to the ebita development we came in at 10.1% Here I would say that if we start with the gross margin, I think the gross margin in the quarter was fairly strong given the organic volumes. here i would say that if we start with the gross margin i think the gross margin in the quarter was fairly strong given the organic volumes I think we're in striking distance with our informal target, despite the low volumes. i think we're in striking distance with our informal target despite the low volumes I'd also say that our acquisitions contribute well to the overall group gross margin. i'd also say that our acquisitions contribute well to the overall group gross margin If we then look to this from a profitability point of view, the lower volumes and the ramp-up issues also put pressure on the EBITA margin. if we then look to this from a profitability point of view the lower volumes and the ramp-up issues also put pressure on the ebita margin Definitely the Americas transition add a decline to the performance. definitely the americas transition add a decline to the performance If I look specifically to Americas, we had several issues in the fourth quarter, and we reported some 300 basis points in the fourth quarter due to operational issues, transfer pricing. This gap has now shrunk to roughly 150 basis points instead of the 300. We're trending in the right direction in the first quarter. Given the low organic sales volumes, the sales and admin costs are relatively high in relation to net sales. It's pleasing to see that the underlying organic SG&A as part of this is now coming down and declining as per the savings projects that we initiated as well as concluded during the last year. If I move to operating cash flow, we had an operating free cash flow of EUR 4.5 million in the quarter. First quarter for us is usually a seasonally weak quarter for different reasons. If I look specifically to Americas, we had several issues in the fourth quarter, and we reported some 300 basis points in the fourth quarter due to operational issues, transfer pricing. if i look specifically to americas we had several issues in the fourth quarter and we reported some 300 basis points in the fourth quarter due to operational issues transfer pricing This gap has now shrunk to roughly 150 basis points instead of the 300. this gap has now shrunk to roughly 150 basis points instead of the 300 We're trending in the right direction in the first quarter. we're trending in the right direction in the first quarter Given the low organic sales volumes, the sales and admin costs are relatively high in relation to net sales. given the low organic sales volumes the sales and admin costs are relatively high in relation to net sales It's pleasing to see that the underlying organic SG&A as part of this is now coming down and declining as per the savings projects that we initiated as well as concluded during the last year. it's pleasing to see that the underlying organic sg&a as part of this is now coming down and declining as per the savings projects that we initiated as well as concluded during the last year If I move to operating cash flow, we had an operating free cash flow of EUR 4.5 million in the quarter. if i move to operating cash flow we had an operating free cash flow of eur 4.5 million in the quarter First quarter for us is usually a seasonally weak quarter for different reasons. first quarter for us is usually a seasonally weak quarter for different reasons Driving this downwards is the U.S. situation where we add some more working capital in terms of inventory to be able to complete the move. I would also say that the structural component also runs at a relatively higher working capital. This is something that we are planning and working on to getting more in line with where the Group has been historically on the structural side of this. EUR 4.5 million of free operating cash flow in the quarter. Moving over to the net debt development, here we came in at 2.7x for the quarter. The net debt increased as a consequence of the three acquisitions we made during the fourth quarter. At the same time as we have our rolling EBITDA measure coming down as the business shrunk last year. Driving this downwards is the U.S. situation where we add some more working capital in terms of inventory to be able to complete the move. driving this downwards is the u.s situation where we add some more working capital in terms of inventory to be able to complete the move I would also say that the structural component also runs at a relatively higher working capital. i would also say that the structural component also runs at a relatively higher working capital This is something that we are planning and working on to getting more in line with where the Group has been historically on the structural side of this. this is something that we are planning and working on to getting more in line with where the group has been historically on the structural side of this EUR 4.5 million of free operating cash flow in the quarter. eur 4.5 million of free operating cash flow in the quarter Moving over to the net debt development, here we came in at 2.7x for the quarter. moving over to the net debt development here we came in at 2.7x for the quarter The net debt increased as a consequence of the three acquisitions we made during the fourth quarter. the net debt increased as a consequence of the three acquisitions we made during the fourth quarter At the same time as we have our rolling EBITDA measure coming down as the business shrunk last year. at the same time as we have our rolling ebitda measure coming down as the business shrunk last year Both these two things contribute to the 2.7x performance in the first quarter. Our target remained to be below 2.5x over time on this one. If I then try to conclude the financials for the first quarter, order intake, sales, Adjusted EBITA, and net debt to EBITDA, I've already gone through. On the EPS side we came in at EUR 0.07 versus EUR 0.10 in the comparable quarter. If I then end with looking ahead, I think I'd like to reiterate that the market conditions remain uncertain. I do think we have saw some green shoots during the first quarter, and we are actively working with preparing to adapt whether this will now take off or whether we continue to be in a more challenging situation. We're actively working to prepare and adapt for either scenario. I think our strategy for profitable growth is unchanged. Both these two things contribute to the 2.7x performance in the first quarter. both these two things contribute to the 2.7x performance in the first quarter Our target remained to be below 2.5x over time on this one. our target remained to be below 2.5x over time on this one If I then try to conclude the financials for the first quarter, order intake, sales, Adjusted EBITA, and net debt to EBITDA, I've already gone through. if i then try to conclude the financials for the first quarter order intake sales adjusted ebita and net debt to ebitda i've already gone through On the EPS side we came in at EUR 0.07 versus EUR 0.10 in the comparable quarter. on the eps side we came in at eur 0.07 versus eur 0.10 in the comparable quarter If I then end with looking ahead, I think I'd like to reiterate that the market conditions remain uncertain. if i then end with looking ahead i think i'd like to reiterate that the market conditions remain uncertain I do think we have saw some green shoots during the first quarter, and we are actively working with preparing to adapt whether this will now take off or whether we continue to be in a more challenging situation. i do think we have saw some green shoots during the first quarter and we are actively working with preparing to adapt whether this will now take off or whether we continue to be in a more challenging situation We're actively working to prepare and adapt for either scenario. we're actively working to prepare and adapt for either scenario I think our strategy for profitable growth is unchanged. i think our strategy for profitable growth is unchanged We are keeping the course, and I think it's a good proof point to look at the order intake in the quarter, looking at it from a total point of view. I also think it's good to see our broader portfolio focused on safety. I think that through the acquisitions, it's good to see strong demand, both on the flexible barrier side as well as the data center safety solutions that we got included from the acquisition of Vichnet. Very good start and strong solid demand on those. We are seeing the optimized factory structure starting to come through. We are seeing this in Europe, and we will, in the not-too-distant future, also see the benefits of the factory move in North America coming through as well during the second half of the year. We are keeping the course, and I think it's a good proof point to look at the order intake in the quarter, looking at it from a total point of view. we are keeping the course and i think it's a good proof point to look at the order intake in the quarter looking at it from a total point of view I also think it's good to see our broader portfolio focused on safety. i also think it's good to see our broader portfolio focused on safety I think that through the acquisitions, it's good to see strong demand, both on the flexible barrier side as well as the data center safety solutions that we got included from the acquisition of Vichnet. i think that through the acquisitions it's good to see strong demand both on the flexible barrier side as well as the data center safety solutions that we got included from the acquisition of vichnet Very good start and strong solid demand on those. very good start and strong solid demand on those We are seeing the optimized factory structure starting to come through. we are seeing the optimized factory structure starting to come through We are seeing this in Europe, and we will, in the not-too-distant future, also see the benefits of the factory move in North America coming through as well during the second half of the year. we are seeing this in europe and we will in the not-too-distant future also see the benefits of the factory move in north america coming through as well during the second half of the year We are continuing with our decentralized operation and continue to work on our processes and our tools to make sure that we are well-positioned now, and we're also well-positioned to grow when the market turns. With that, I would like to conclude the presentation part of this call, and we will now move into Q&A. As usual, raise your hand and we will make sure to unmute and un-mic you, and let you in. I see the first hand from Jonny Jin at SEB. We are continuing with our decentralized operation and continue to work on our processes and our tools to make sure that we are well-positioned now, and we're also well-positioned to grow when the market turns. we are continuing with our decentralized operation and continue to work on our processes and our tools to make sure that we are well-positioned now and we're also well-positioned to grow when the market turns With that, I would like to conclude the presentation part of this call, and we will now move into Q&A. with that i would like to conclude the presentation part of this call and we will now move into q&a As usual, raise your hand and we will make sure to unmute and un-mic you, and let you in. as usual raise your hand and we will make sure to unmute and un-mic you and let you in I see the first hand from Jonny Jin at SEB. i see the first hand from jonny jin at seb

Speaker 4: Hi. Good afternoon, Martin. Hope you can hear me. Hi. hi Good afternoon, Martin. good afternoon martin Hope you can hear me. hope you can hear me

Speaker 5: Hi, Jonny. Hi, Jonny. hi jonny

Speaker 4: I have a couple of questions. Hi. Starting with the invoicing. We touched upon this, but the organic conversion seems to be on the low side here in the quarter. I know you mentioned— I have a couple of questions. i have a couple of questions Hi. hi Starting with the invoicing. starting with the invoicing We touched upon this, but the organic conversion seems to be on the low side here in the quarter. we touched upon this but the organic conversion seems to be on the low side here in the quarter I know you mentioned— i know you mentioned—

Speaker 5: Mm-hmm Mm-hmm mm-hmm

Speaker 4: —the ramp-up effect in the U.S. and the closure of business in the U.K. and such, but could you maybe elaborate the effect of these respectively, please? What was the effect of the delays in delivery in the U.S., for instance, in the quarter? —the ramp-up effect in the U.S. and the closure of business in the U.K. and such, but could you maybe elaborate the effect of these respectively, please? —the ramp-up effect in the u.s and the closure of business in the u.k and such but could you maybe elaborate the effect of these respectively please What was the effect of the delays in delivery in the U.S., for instance, in the quarter? what was the effect of the delays in delivery in the u.s for instance in the quarter

Speaker 5: Yeah. In the U.S., we moved our inventory from Chicago to Nashville. We moved that over the Christmas season. When we were planning to start ramping up, it takes some time to ramp up. The original plan was to take the backlog that we built up during the first half of the quarter and gain that back already in the quarter. Now we realized that we had some more ramp-up challenges than what we first anticipated. The impact on the sales side is somewhere between EUR 1.5 million-EUR 2 million in the quarter. Just to be clear on that, I think this is not lost sales in that sense. It's a timing and sequencing effect. As we've now ramped up our delivery capabilities, we will step by step eat that excess backlog back. Yeah. yeah In the U.S., we moved our inventory from Chicago to Nashville. in the u.s we moved our inventory from chicago to nashville We moved that over the Christmas season. we moved that over the christmas season When we were planning to start ramping up, it takes some time to ramp up. when we were planning to start ramping up it takes some time to ramp up The original plan was to take the backlog that we built up during the first half of the quarter and gain that back already in the quarter. the original plan was to take the backlog that we built up during the first half of the quarter and gain that back already in the quarter Now we realized that we had some more ramp-up challenges than what we first anticipated. now we realized that we had some more ramp-up challenges than what we first anticipated The impact on the sales side is somewhere between EUR 1.5 million-EUR 2 million in the quarter. the impact on the sales side is somewhere between eur 1.5 million-eur 2 million in the quarter Just to be clear on that, I think this is not lost sales in that sense. just to be clear on that i think this is not lost sales in that sense It's a timing and sequencing effect. it's a timing and sequencing effect As we've now ramped up our delivery capabilities, we will step by step eat that excess backlog back. as we've now ramped up our delivery capabilities we will step by step eat that excess backlog back

Speaker 4: Okay. EUR 1 million-EUR 2 million, that's from the U.S. What was the effect— Okay. EUR 1 million-EUR 2 million, that's from the U.S. okay. eur 1 million-eur 2 million that's from the u.s What was the effect— what was the effect—

Speaker 5: Yes. Yes. yes

Speaker 4: —from the closure of U.K.? —from the closure of U.K.? —from the closure of u.k

Speaker 5: It's roughly EUR 1 million too, in the quarter. It's roughly EUR 1 million too, in the quarter. it's roughly eur 1 million too in the quarter

Speaker 4: Okay. Yeah, that's clear. What was the annualized sales of the U.K. business here, which you now closed down? Okay. okay Yeah, that's clear. yeah that's clear What was the annualized sales of the U.K. business here, which you now closed down? what was the annualized sales of the u.k business here which you now closed down

Speaker 5: It's roughly EUR 10 million. It's roughly EUR 10 million. it's roughly eur 10 million

Speaker 4: Okay. Yeah, that's clear. Perfect. I want to move to the contribution from M&A. You mentioned it already, but it seems stronger than expected in the quarter. Maybe— Okay. okay Yeah, that's clear. yeah that's clear Perfect. perfect I want to move to the contribution from M&A. i want to move to the contribution from m&a You mentioned it already, but it seems stronger than expected in the quarter. you mentioned it already but it seems stronger than expected in the quarter Maybe— maybe—

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 4: —could you elaborate what is driving this strength from M&A? Are there any timing or such from the acquisitions you made, or is this a fair picture of the underlying performance of those acquisitions? —could you elaborate what is driving this strength from M&A? —could you elaborate what is driving this strength from m&a Are there any timing or such from the acquisitions you made, or is this a fair picture of the underlying performance of those acquisitions? are there any timing or such from the acquisitions you made or is this a fair picture of the underlying performance of those acquisitions

Speaker 5: No, I think it's fair to say that the demand for both wire trays data centers and barriers is robust. I don't think there is anything in the quarter here that stands out in a very positive way or in a very negative way. I think it's a fair reflection of a Q1 outcome, you could say. Yeah, well, I would probably take this to the bank and not put sugar or salt to it, so to speak. No, I think it's fair to say that the demand for both wire trays data centers and barriers is robust. no i think it's fair to say that the demand for both wire trays data centers and barriers is robust I don't think there is anything in the quarter here that stands out in a very positive way or in a very negative way. i don't think there is anything in the quarter here that stands out in a very positive way or in a very negative way I think it's a fair reflection of a Q1 outcome, you could say. i think it's a fair reflection of a q1 outcome you could say Yeah, well, I would probably take this to the bank and not put sugar or salt to it, so to speak. yeah well i would probably take this to the bank and not put sugar or salt to it so to speak

Speaker 4: Okay. Yeah. Okay. Interesting. Just one on the OpEx cost side. I know we touched upon this also, but it seems to be on the higher side, even if we adjust for the one-offs. Okay. okay Yeah. yeah Okay. okay Interesting. interesting Just one on the OpEx cost side. just one on the opex cost side I know we touched upon this also, but it seems to be on the higher side, even if we adjust for the one-offs. i know we touched upon this also but it seems to be on the higher side even if we adjust for the one-offs

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 4: Is there something special that happened on the operating expense side in this quarter, or would you say that this is sort of the expected fair run rate we could expect for the coming quarter as well on the operating expense side? Is there something special that happened on the operating expense side in this quarter, or would you say that this is sort of the expected fair run rate we could expect for the coming quarter as well on the operating expense side? is there something special that happened on the operating expense side in this quarter or would you say that this is sort of the expected fair run rate we could expect for the coming quarter as well on the operating expense side

Speaker 5: Yeah, I do think we are still on the high side. We plan to conclude one phase of our digitalization project by late 2025. This has proven to be more complicated than what we thought, which means that we're also carrying costs for this project in the first quarter here as well, and we will continue to carry some of these costs also into the second quarter, and aim for finalization on this. I would say the work to put some key digital tools here are also key to be able to make more cost savings on the SG&A side going forward and as a next step. We're still carrying a bit of extra weight compared to the original plan here in the first quarter. Yeah, I do think we are still on the high side. yeah i do think we are still on the high side We plan to conclude one phase of our digitalization project by late 2025. we plan to conclude one phase of our digitalization project by late 2025 This has proven to be more complicated than what we thought, which means that we're also carrying costs for this project in the first quarter here as well, and we will continue to carry some of these costs also into the second quarter, and aim for finalization on this. this has proven to be more complicated than what we thought which means that we're also carrying costs for this project in the first quarter here as well and we will continue to carry some of these costs also into the second quarter and aim for finalization on this I would say the work to put some key digital tools here are also key to be able to make more cost savings on the SG&A side going forward and as a next step. i would say the work to put some key digital tools here are also key to be able to make more cost savings on the sg&a side going forward and as a next step We're still carrying a bit of extra weight compared to the original plan here in the first quarter. we're still carrying a bit of extra weight compared to the original plan here in the first quarter

Speaker 4: Could you try to quantify the extra weight a little bit closer? Could you try to quantify the extra weight a little bit closer? could you try to quantify the extra weight a little bit closer

Speaker 5: We're talking a few hundred thousand euros. We're talking a few hundred thousand euros. we're talking a few hundred thousand euros

Speaker 4: Okay, that's fair. Just one final on outlook and demand. I know you mentioned reports some signs of improvement at the end of the quarter, and you talked about they picked up momentum throughout the quarter, I think as well. How should we interpret this? Are you seeing better orders already now at the start of Q2? Or is this—what are you basing those comments on? Okay, that's fair. okay that's fair Just one final on outlook and demand. just one final on outlook and demand I know you mentioned reports some signs of improvement at the end of the quarter, and you talked about they picked up momentum throughout the quarter, I think as well. i know you mentioned reports some signs of improvement at the end of the quarter and you talked about they picked up momentum throughout the quarter i think as well How should we interpret this? how should we interpret this Are you seeing better orders already now at the start of Q2? are you seeing better orders already now at the start of q2 Or is this—what are you basing those comments on? or is this—what are you basing those comments on

Speaker 5: Yeah, I think we saw a gradual improvement throughout quarter one, and we haven't seen anything beginning of April that's different to the end of quarter one. That would be one reflection from my end. The second reflection, I think, is also if we look at the composition of that order intake. We've had a couple of really tough years on the warehousing side 2022, 2023, sorry—2023, 2024, and 2025. We do see some things starting to move here. We had more activity in the second half of last year. We think we see—we have more of order intake in that segment now in the first quarter. That's good news, of course, for us since this is the largest segment for us. Yeah, I think we saw a gradual improvement throughout quarter one, and we haven't seen anything beginning of April that's different to the end of quarter one. yeah i think we saw a gradual improvement throughout quarter one and we haven't seen anything beginning of april that's different to the end of quarter one That would be one reflection from my end. that would be one reflection from my end The second reflection, I think, is also if we look at the composition of that order intake. the second reflection i think is also if we look at the composition of that order intake We've had a couple of really tough years on the warehousing side 2022, 2023, sorry—2023, 2024, and 2025. we've had a couple of really tough years on the warehousing side 2022, 2023, sorry—2023 2024 and 2025 We do see some things starting to move here. we do see some things starting to move here We had more activity in the second half of last year. we had more activity in the second half of last year We think we see—we have more of order intake in that segment now in the first quarter. we think we see—we have more of order intake in that segment now in the first quarter That's good news, of course, for us since this is the largest segment for us. that's good news of course for us since this is the largest segment for us

Speaker 4: Yeah, I understand. Just one final question, sorry to squeeze in. I saw a lot of questions, but just in North America, you mentioned strong order momentum there, and I think you said also it's driven by warehouse, but also general industry. There have been some other companies here reporting, stating that industrial CapEx is a little bit worse here, sentiment after the Middle East crisis and such. Yeah, I understand. yeah i understand Just one final question, sorry to squeeze in. I saw a lot of questions, but just in North America, you mentioned strong order momentum there, and I think you said also it's driven by warehouse, but also general industry. just one final question sorry to squeeze in. i saw a lot of questions but just in north america you mentioned strong order momentum there and i think you said also it's driven by warehouse but also general industry There have been some other companies here reporting, stating that industrial CapEx is a little bit worse here, sentiment after the Middle East crisis and such. there have been some other companies here reporting stating that industrial capex is a little bit worse here sentiment after the middle east crisis and such

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 4: Is this something you also mention overseeing or is there a few customers that drive this momentum or what is driving that, would you say? Is this something you also mention overseeing or is there a few customers that drive this momentum or what is driving that, would you say? is this something you also mention overseeing or is there a few customers that drive this momentum or what is driving that would you say

Speaker 5: Yeah, I would say, I think on the warehousing side, Q1 was more robust in a sense that we had a more broad-based, you could say, activity as well as orders. On the general side, I think it's likely more our customer mix than something that is broad-based in describing the market. Yeah, I would say, I think on the warehousing side, Q1 was more robust in a sense that we had a more broad-based, you could say, activity as well as orders. yeah i would say i think on the warehousing side q1 was more robust in a sense that we had a more broad-based you could say activity as well as orders On the general side, I think it's likely more our customer mix than something that is broad-based in describing the market. on the general side i think it's likely more our customer mix than something that is broad-based in describing the market

Speaker 4: Okay. Yeah, that's fair. We'll see. Thank you. That was all from me. Okay. okay Yeah, that's fair. yeah that's fair We'll see. we'll see Thank you. thank you That was all from me. that was all from me

Speaker 5: Thanks, Jonny. Anna Widström is next. Thanks, Jonny. thanks jonny Anna Widström is next. anna widström is next

Speaker 1: Yes. Hi, Martin. I hope you can hear me as well. Yes. yes Hi, Martin. hi martin I hope you can hear me as well. i hope you can hear me as well

Speaker 5: Hi, Anna. Loud and clear. Hi, Anna. hi anna Loud and clear. loud and clear

Speaker 1: Perfect. My first question is just if you could give us some details on the price component in the order intake, if you have that for the whole Group or if you could give us some details per region. Perfect. perfect My first question is just if you could give us some details on the price component in the order intake, if you have that for the whole Group or if you could give us some details per region. my first question is just if you could give us some details on the price component in the order intake if you have that for the whole group or if you could give us some details per region

Speaker 5: Yeah. Overall, you could look at it as Europe and Asia fairly stable as price component in the order intake. In the U.S., we're looking at the double-digit number to compensate for material transportation, et cetera. If you weigh that together, you'll get a few percentage point on the order intake. Yeah. yeah Overall, you could look at it as Europe and Asia fairly stable as price component in the order intake. overall you could look at it as europe and asia fairly stable as price component in the order intake In the U.S., we're looking at the double-digit number to compensate for material transportation, et cetera. in the u.s we're looking at the double-digit number to compensate for material transportation et cetera If you weigh that together, you'll get a few percentage point on the order intake. if you weigh that together you'll get a few percentage point on the order intake

Speaker 1: Okay, perfect. Just going back to the M&A contribution, as stated previously, it's very solid. Could we get some assessment of how much of the invoicing or orders that are specifically from Vichnet? Okay, perfect. okay perfect Just going back to the M&A contribution, as stated previously, it's very solid. just going back to the m&a contribution as stated previously it's very solid Could we get some assessment of how much of the invoicing or orders that are specifically from Vichnet? could we get some assessment of how much of the invoicing or orders that are specifically from vichnet

Speaker 5: Yeah. Vichnet would be a little bit north of between 50% and 60%. Yeah. yeah Vichnet would be a little bit north of between 50% and 60%. vichnet would be a little bit north of between 50% and 60%

Speaker 1: Okay, perfect. Thank you. Just going into, because as it has a Chinese exposure, it's rather fair to maybe assume that it has a different kind of seasonality than— Okay, perfect. okay perfect Thank you. thank you Just going into, because as it has a Chinese exposure, it's rather fair to maybe assume that it has a different kind of seasonality than— just going into because as it has a chinese exposure it's rather fair to maybe assume that it has a different kind of seasonality than—

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: —the remaining parts of Troax. —the remaining parts of Troax. —the remaining parts of troax

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: So just how should we think about Vichnet's activity going into second quarter and the remaining parts? Maybe also, if we can go into the details on how the acquisitions affected the operating margin. You said that they had a positive contribution on the gross margin. So just how should we think about Vichnet's activity going into second quarter and the remaining parts? so just how should we think about vichnet's activity going into second quarter and the remaining parts Maybe also, if we can go into the details on how the acquisitions affected the operating margin. maybe also if we can go into the details on how the acquisitions affected the operating margin You said that they had a positive contribution on the gross margin. you said that they had a positive contribution on the gross margin

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 1: How does it look on the operating margin as well? How does it look on the operating margin as well? how does it look on the operating margin as well

Speaker 5: Yeah. If we start with the seasonality question, and I would think, obviously with Vichnet, a lot more of that business is an APAC business. That follows more the Chinese annual cycle, if you will. That, at least from how we used to know it, as Q1 is usually a little weaker than the other quarters. If we look at Europe as at the other end of the scale, the pattern is slightly different. Usually the first quarter in APAC is the weakest one from a volume and profitability point of view. I think we probably need a few more quarters under the belt with Vichnet to see whether the business is performing or behaving just like that. Yeah. yeah If we start with the seasonality question, and I would think, obviously with Vichnet, a lot more of that business is an APAC business. if we start with the seasonality question and i would think obviously with vichnet a lot more of that business is an apac business That follows more the Chinese annual cycle, if you will. that follows more the chinese annual cycle if you will That, at least from how we used to know it, as Q1 is usually a little weaker than the other quarters. that at least from how we used to know it as q1 is usually a little weaker than the other quarters If we look at Europe as at the other end of the scale, the pattern is slightly different. if we look at europe as at the other end of the scale the pattern is slightly different Usually the first quarter in APAC is the weakest one from a volume and profitability point of view. I think we probably need a few more quarters under the belt with Vichnet to see whether the business is performing or behaving just like that. usually the first quarter in apac is the weakest one from a volume and profitability point of view. i think we probably need a few more quarters under the belt with vichnet to see whether the business is performing or behaving just like that

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 5: I think it's probably a fair assumption to say that it will behave like we know other APAC businesses or Chinese businesses. On the operating margin side, it's true that our acquisitions are stronger in relative terms on the gross margin side. At the same time, all these three are growth cases, which means that the proportional SG&A might still be on the high side. In the specific quarter, the structural component was over average compared to the Group. It's been— I think it's probably a fair assumption to say that it will behave like we know other APAC businesses or Chinese businesses. i think it's probably a fair assumption to say that it will behave like we know other apac businesses or chinese businesses On the operating margin side, it's true that our acquisitions are stronger in relative terms on the gross margin side. on the operating margin side it's true that our acquisitions are stronger in relative terms on the gross margin side At the same time, all these three are growth cases, which means that the proportional SG&A might still be on the high side. at the same time all these three are growth cases which means that the proportional sg&a might still be on the high side In the specific quarter, the structural component was over average compared to the Group. in the specific quarter the structural component was over average compared to the group It's been— it's been—

Speaker 1: Mm-hmm. Mm-hmm. mm-hmm

Speaker 5: —accretive, if you will. —accretive, if you will. —accretive if you will

Speaker 1: Okay, perfect. Maybe you could give us some details on how the growth momentum, both for Vichnet but also your own data center exposure? Okay, perfect. okay perfect Maybe you could give us some details on how the growth momentum, both for Vichnet but also your own data center exposure? maybe you could give us some details on how the growth momentum both for vichnet but also your own data center exposure

Speaker 5: Yeah, no, I'm happy to do that. I think we've had some good progress the last couple of years. We are relatively new into this. I think the data center business, both on racks as well as on wire trays, is one of the growth drivers for Vichnet. I think the development, the momentum in this business is good, and it's good in our structural part, and it's also quite good on the organic side. From that point of view, it's a good growth potential and also a growth driver, even though it's from a low base still. Yeah, no, I'm happy to do that. yeah no i'm happy to do that I think we've had some good progress the last couple of years. i think we've had some good progress the last couple of years We are relatively new into this. we are relatively new into this I think the data center business, both on racks as well as on wire trays, is one of the growth drivers for Vichnet. i think the data center business both on racks as well as on wire trays is one of the growth drivers for vichnet I think the development, the momentum in this business is good, and it's good in our structural part, and it's also quite good on the organic side. i think the development the momentum in this business is good and it's good in our structural part and it's also quite good on the organic side From that point of view, it's a good growth potential and also a growth driver, even though it's from a low base still. from that point of view it's a good growth potential and also a growth driver even though it's from a low base still

Speaker 1: Okay, perfect. Just thinking about the backlog then that you have in the U.S. As you seem to be quite confident that the delivery issues are fixed into Q2, should we be able to see full delivery on the backlog, or should this maybe be viewed as gradually throughout the second and the third quarter? Okay, perfect. okay perfect Just thinking about the backlog then that you have in the U.S. just thinking about the backlog then that you have in the u.s As you seem to be quite confident that the delivery issues are fixed into Q2, should we be able to see full delivery on the backlog, or should this maybe be viewed as gradually throughout the second and the third quarter? as you seem to be quite confident that the delivery issues are fixed into q2 should we be able to see full delivery on the backlog or should this maybe be viewed as gradually throughout the second and the third quarter

Speaker 5: Yeah, I think we should be delivering what the customers have ordered from us. We will eat that backlog mainly in Q2. Perhaps something will then be squeezed and move into Q3. We should be able to see that invoicing coming through during the course of the year. Yeah, I think we should be delivering what the customers have ordered from us. yeah i think we should be delivering what the customers have ordered from us We will eat that backlog mainly in Q2. we will eat that backlog mainly in q2 Perhaps something will then be squeezed and move into Q3. perhaps something will then be squeezed and move into q3 We should be able to see that invoicing coming through during the course of the year. we should be able to see that invoicing coming through during the course of the year

Speaker 1: Okay, perfect. Just the final one from my side on the warehousing exposure. Okay, perfect. okay perfect Just the final one from my side on the warehousing exposure. just the final one from my side on the warehousing exposure The increased activity that you're seeing, is this relating to sort of base business within small and mid-sized orders, or has activity on larger orders increased as well? The increased activity that you're seeing, is this relating to sort of base business within small and mid-sized orders, or has activity on larger orders increased as well? the increased activity that you're seeing is this relating to sort of base business within small and mid-sized orders or has activity on larger orders increased as well

Speaker 5: It's a bit of both, I would say. The pipeline on warehousing is a mix of, I think what we haven't seen in the past couple of years has been the large projects. We now see them come back, but I would also say that small, medium, as well as mid-sized, is also more active. I'd say it's in all three categories, if you will. It's a bit of both, I would say. it's a bit of both i would say The pipeline on warehousing is a mix of, I think what we haven't seen in the past couple of years has been the large projects. the pipeline on warehousing is a mix of i think what we haven't seen in the past couple of years has been the large projects We now see them come back, but I would also say that small, medium, as well as mid-sized, is also more active. we now see them come back but i would also say that small medium as well as mid-sized is also more active I'd say it's in all three categories, if you will. i'd say it's in all three categories if you will

Speaker 1: Okay, perfect. That's all my questions. Thank you. Okay, perfect. okay perfect That's all my questions. that's all my questions Thank you. thank you

Speaker 5: Thanks, Anna. We go with Gustav Berneblad. Thanks, Anna. thanks anna We go with Gustav Berneblad. we go with gustav berneblad

Speaker 3: Yes, good afternoon. It's Gustav here from Nordea. Yes, good afternoon. yes good afternoon It's Gustav here from Nordea. it's gustav here from nordea

Speaker 5: Good afternoon, Gustav. Good afternoon, Gustav. good afternoon gustav

Speaker 3: Good afternoon. I thought maybe just to start off on the backlog story just for Northern Europe in conjunction with the facility consolidation. Are there any backlogs to talk about there, given that you say that hopefully you are out to direct the facility towards more volumes, et cetera? Good afternoon. good afternoon I thought maybe just to start off on the backlog story just for Northern Europe in conjunction with the facility consolidation. i thought maybe just to start off on the backlog story just for northern europe in conjunction with the facility consolidation Are there any backlogs to talk about there, given that you say that hopefully you are out to direct the facility towards more volumes, et cetera? are there any backlogs to talk about there given that you say that hopefully you are out to direct the facility towards more volumes et cetera

Speaker 5: There was a bit of backlog that we decided not to produce in Poland and start ramping up in Sweden. There is a bit of backlog from that. I wouldn't say we carry a big backlog in this. This is win the orders and produce it, and I'd say this, hence we have a lower invoicing than what you could say is normalized in this business. This impacted Q1 slightly as well. There was a bit of backlog that we decided not to produce in Poland and start ramping up in Sweden. there was a bit of backlog that we decided not to produce in poland and start ramping up in sweden There is a bit of backlog from that. there is a bit of backlog from that I wouldn't say we carry a big backlog in this. i wouldn't say we carry a big backlog in this This is win the orders and produce it, and I'd say this, hence we have a lower invoicing than what you could say is normalized in this business. this is win the orders and produce it and i'd say this hence we have a lower invoicing than what you could say is normalized in this business This impacted Q1 slightly as well. this impacted q1 slightly as well

Speaker 3: That's perfect. Just thinking about if you could reason a bit on the margin and the cost. How should we think sequentially from Q1 into Q2, in terms of what type of costs will ease? You will close down, if you just take North America, you'll likely close down and you have less personnel there. You will have eventually dual rents, et cetera. Are there anything to do in other areas that are worth highlighting? That's perfect. that's perfect Just thinking about if you could reason a bit on the margin and the cost. just thinking about if you could reason a bit on the margin and the cost How should we think sequentially from Q1 into Q2, in terms of what type of costs will ease? how should we think sequentially from q1 into q2 in terms of what type of costs will ease You will close down, if you just take North America, you'll likely close down and you have less personnel there. you will close down if you just take north america you'll likely close down and you have less personnel there You will have eventually dual rents, et cetera. you will have eventually dual rents et cetera Are there anything to do in other areas that are worth highlighting? are there anything to do in other areas that are worth highlighting

Speaker 5: I think you nailed the two big ones. For sure, we are having our most intense months here now, so we've had a very intense quarter one. We'll continue to drive a very intense work to get not only the logistics in North America, but also the machinery and the equipment. At one point, we can move from running a dual operation, which we have currently in the U.S., into one more optimal, and that will happen during the second half of the second quarter. Of course, with that, some of the double costs will naturally decrease as our employees in Chicago will not have a factory to come to in that sense. That will be, I would say, the main difference here in the second quarter. I think you nailed the two big ones. i think you nailed the two big ones For sure, we are having our most intense months here now, so we've had a very intense quarter one. for sure we are having our most intense months here now so we've had a very intense quarter one We'll continue to drive a very intense work to get not only the logistics in North America, but also the machinery and the equipment. we'll continue to drive a very intense work to get not only the logistics in north america but also the machinery and the equipment At one point, we can move from running a dual operation, which we have currently in the U.S., into one more optimal, and that will happen during the second half of the second quarter. at one point we can move from running a dual operation which we have currently in the u.s into one more optimal and that will happen during the second half of the second quarter Of course, with that, some of the double costs will naturally decrease as our employees in Chicago will not have a factory to come to in that sense. of course with that some of the double costs will naturally decrease as our employees in chicago will not have a factory to come to in that sense That will be, I would say, the main difference here in the second quarter. that will be i would say the main difference here in the second quarter

Speaker 3: Yeah. Okay, perfect. That's great. Just on your comments in the report regarding cost synergies in terms of the acquisitions, are these material and how should we think about the timing? Best guess, I guess. Yeah. yeah Okay, perfect. okay perfect That's great. that's great Just on your comments in the report regarding cost synergies in terms of the acquisitions, are these material and how should we think about the timing? just on your comments in the report regarding cost synergies in terms of the acquisitions are these material and how should we think about the timing Best guess, I guess. best guess i guess

Speaker 5: I think I'll probably have to get back on this topic with the second quarter report. We're one quarter into the integration work, but I think at first glance, there are a few areas of overlap. Obviously, we can look at the company structure, we can look at admin structures, we can look at how we treat, for example, inventories on the capital side. I wouldn't dare to quantify how much this is today. I'll promise you to get back on this when we have a bit more firm view and data on this, Gustav. I think I'll probably have to get back on this topic with the second quarter report. i think i'll probably have to get back on this topic with the second quarter report We're one quarter into the integration work, but I think at first glance, there are a few areas of overlap. we're one quarter into the integration work but i think at first glance there are a few areas of overlap Obviously, we can look at the company structure, we can look at admin structures, we can look at how we treat, for example, inventories on the capital side. obviously we can look at the company structure we can look at admin structures we can look at how we treat for example inventories on the capital side I wouldn't dare to quantify how much this is today. i wouldn't dare to quantify how much this is today I'll promise you to get back on this when we have a bit more firm view and data on this, Gustav. i'll promise you to get back on this when we have a bit more firm view and data on this gustav

Speaker 3: Oh, that's fair. Thank you. Just one last clarifying question, just on the Commercial Partitioning here. Did it have any negative impact in the quarter at all? Oh, that's fair. oh that's fair Thank you. thank you Just one last clarifying question, just on the Commercial Partitioning here. just one last clarifying question just on the commercial partitioning here Did it have any negative impact in the quarter at all? did it have any negative impact in the quarter at all

Speaker 5: It has negative impact in, you could say, in two ways. The first one is that we obviously stopped taking orders. So which means that when you compare organic order intake, you will have an artificial effect of that the order intake is not really measuring this apples to apples. You can use the annual figure and divide by four. You get a rough idea what that order intake impact is. The second one is on the results and sales. Since we stopped taking orders somewhere late last year, it also means that we have less volume to invoice during the first quarter here. As we move into the second quarter when we've discontinued the operation, obviously, you will have that effect as lower order intake and lower sales organically. It has negative impact in, you could say, in two ways. it has negative impact in you could say in two ways The first one is that we obviously stopped taking orders. the first one is that we obviously stopped taking orders So which means that when you compare organic order intake, you will have an artificial effect of that the order intake is not really measuring this apples to apples. so which means that when you compare organic order intake you will have an artificial effect of that the order intake is not really measuring this apples to apples You can use the annual figure and divide by four. you can use the annual figure and divide by four You get a rough idea what that order intake impact is. you get a rough idea what that order intake impact is The second one is on the results and sales. the second one is on the results and sales Since we stopped taking orders somewhere late last year, it also means that we have less volume to invoice during the first quarter here. since we stopped taking orders somewhere late last year it also means that we have less volume to invoice during the first quarter here As we move into the second quarter when we've discontinued the operation, obviously, you will have that effect as lower order intake and lower sales organically. as we move into the second quarter when we've discontinued the operation obviously you will have that effect as lower order intake and lower sales organically However, this business was diluted to the Group average, which means that it should also be seen as a positive thing to the Group result, if you look at the margin. However, this business was diluted to the Group average, which means that it should also be seen as a positive thing to the Group result, i f you look at the margin. however this business was diluted to the group average which means that it should also be seen as a positive thing to the group result, i f you look at the margin

Speaker 3: Yeah, yeah, perfect. We saw that positive impact from 1st of January, basically. Yeah, yeah, perfect. yeah, yeah perfect We saw that positive impact from 1st of January, basically. we saw that positive impact from 1st of january basically

Speaker 5: No, you will see that impact from the second quarter. No, you will see that impact from the second quarter. no you will see that impact from the second quarter

Speaker 3: Okay. That's very clear. Thank you very much. Okay. okay That's very clear. that's very clear Thank you very much. thank you very much

Speaker 5: Thank you. Daniel Lindkvist, please go ahead. Thank you. thank you Daniel Lindkvist, please go ahead. daniel lindkvist please go ahead

Speaker 2: Thank you, Martin. I've had most of my questions answered by this point, but just a few ones from my side. If we look at the timeframe in your order book, we've gotten used now to conversion in the upcoming quarter, more or less, for quite some time. I'm in particular interested in the U.S. order intake and delivery structure for that one, and also on the acquired units in particular. Thank you, Martin. thank you martin I've had most of my questions answered by this point, but just a few ones from my side. i've had most of my questions answered by this point but just a few ones from my side If we look at the timeframe in your order book, we've gotten used now to conversion in the upcoming quarter, more or less, for quite some time. if we look at the timeframe in your order book we've gotten used now to conversion in the upcoming quarter more or less for quite some time I'm in particular interested in the U.S. order intake and delivery structure for that one, and also on the acquired units in particular. i'm in particular interested in the u.s order intake and delivery structure for that one and also on the acquired units in particular

Speaker 5: Yeah. If we look at the U.S., in the first quarter, we had a few larger projects. If you look at usually you convert with a quarter's delay or something, it means that the order intake in the first quarter will have a somewhat longer conversion rate, which then impacts second, third quarter. If we look at the structural part, the business that relates to the data center business also runs at a slightly longer conversion cycle than the, you could say, the bread-and-butter business that you're used to. Yeah. yeah If we look at the U.S., in the first quarter, we had a few larger projects. if we look at the u.s in the first quarter we had a few larger projects If you look at usually you convert with a quarter's delay or something, it means that the order intake in the first quarter will have a somewhat longer conversion rate, which then impacts second, third quarter. if you look at usually you convert with a quarter's delay or something it means that the order intake in the first quarter will have a somewhat longer conversion rate which then impacts second third quarter If we look at the structural part, the business that relates to the data center business also runs at a slightly longer conversion cycle than the, you could say, the bread-and-butter business that you're used to. if we look at the structural part the business that relates to the data center business also runs at a slightly longer conversion cycle than the you could say the bread-and-butter business that you're used to

Speaker 2: Okay, cool. If we just then add how much is left roughly of the backlog from the U.S. now? Okay, cool. okay cool If we just then add how much is left roughly of the backlog from the U.S. now? if we just then add how much is left roughly of the backlog from the u.s now

Speaker 5: Stemming from the move quarter four, quarter one, it's roughly EUR 2 million. Stemming from the move quarter four, quarter one, it's roughly EUR 2 million. stemming from the move quarter four quarter one it's roughly eur 2 million

Speaker 2: Roughly EUR 2 million. Perfect. If we just look at them, the acquisitions really surprised me in Q1, and it seems like these are bigger operations than we in the market perceived. At the same time, in Q1 we had the Chinese New Year. One would guess that the flexible barrier side would have been the stronger part in Q1 and maybe then in the opposite situation in Q2. Is that a fair assumption? Is there any difference between the gross margins in the plastic barriers and in Vichnet just to bring with us going forward? Roughly EUR 2 million. roughly eur 2 million Perfect. perfect If we just look at them, the acquisitions really surprised me in Q1, and it seems like these are bigger operations than we in the market perceived. if we just look at them the acquisitions really surprised me in q1 and it seems like these are bigger operations than we in the market perceived At the same time, in Q1 we had the Chinese New Year. at the same time in q1 we had the chinese new year One would guess that the flexible barrier side would have been the stronger part in Q1 and maybe then in the opposite situation in Q2. one would guess that the flexible barrier side would have been the stronger part in q1 and maybe then in the opposite situation in q2 Is that a fair assumption? is that a fair assumption Is there any difference between the gross margins in the plastic barriers and in Vichnet just to bring with us going forward? is there any difference between the gross margins in the plastic barriers and in vichnet just to bring with us going forward

Speaker 5: I think conceptually you are right with the quarterly sequencing on barriers and on the Vichnet acquisition. In theory, you're right. I think we're only one quarter into this acquisition, so I'd like to be a little careful on that. Conceptually, I'd agree with you, Daniel, on that. On the gross margin side, all three acquisitions are delivering what I consider to be healthy gross margins and healthy gross profit. I think it's also an outcome of the fact that we're delivering solid value to our customers. They're all bringing value products to the customer. They are all accretive to, you could say, Group average on the gross margin from a gross margin point of view. I think conceptually you are right with the quarterly sequencing on barriers and on the Vichnet acquisition. i think conceptually you are right with the quarterly sequencing on barriers and on the vichnet acquisition In theory, you're right. in theory you're right I think we're only one quarter into this acquisition, so I'd like to be a little careful on that. i think we're only one quarter into this acquisition so i'd like to be a little careful on that Conceptually, I'd agree with you, Daniel, on that. conceptually i'd agree with you daniel on that On the gross margin side, all three acquisitions are delivering what I consider to be healthy gross margins and healthy gross profit. on the gross margin side all three acquisitions are delivering what i consider to be healthy gross margins and healthy gross profit I think it's also an outcome of the fact that we're delivering solid value to our customers. i think it's also an outcome of the fact that we're delivering solid value to our customers They're all bringing value products to the customer. they're all bringing value products to the customer They are all accretive to, you could say, Group average on the gross margin from a gross margin point of view. they are all accretive to you could say group average on the gross margin from a gross margin point of view

Speaker 2: Okay, Vichnet is also a higher gross margin business than the average? Okay, Vichnet is also a higher gross margin business than the average? okay vichnet is also a higher gross margin business than the average

Speaker 5: Yeah. Yeah. yeah

Speaker 2: Okay. Okay. okay

Speaker 5: Yes. Yes. yes

Speaker 2: Cool. Just on the automotive side, I mean, you've delivered on old projects for some time, but the market has in general been weak. Or should we read it as the market has become weaker now? What's the split between the projects you've had and delivered on and the market becoming weaker or the opposite? Cool. cool Just on the automotive side, I mean, you've delivered on old projects for some time, but the market has in general been weak. just on the automotive side i mean, you've delivered on old projects for some time but the market has in general been weak Or should we read it as the market has become weaker now? or should we read it as the market has become weaker now What's the split between the projects you've had and delivered on and the market becoming weaker or the opposite? what's the split between the projects you've had and delivered on and the market becoming weaker or the opposite

Speaker 5: Yeah. I think what we are now experiencing at our end is we are pretty late into the cycle. Obviously, a lot of the car makers and other suppliers to the car industry might have suffered a bit earlier than we have. I think on the order intake side, we're now seeing kind of the reality of where automotive is. From that point of view, this is one of the first quarters where we're not filling the pipeline with larger new projects. I wouldn't say necessarily that the market might have gone a lot worse in Q1 versus Q4, but I think now it appears at our end, what that looks like in terms of investment into our product niches. Yeah. yeah I think what we are now experiencing at our end is we are pretty late into the cycle. i think what we are now experiencing at our end is we are pretty late into the cycle Obviously, a lot of the car makers and other suppliers to the car industry might have suffered a bit earlier than we have. obviously a lot of the car makers and other suppliers to the car industry might have suffered a bit earlier than we have I think on the order intake side, we're now seeing kind of the reality of where automotive is. i think on the order intake side we're now seeing kind of the reality of where automotive is From that point of view, this is one of the first quarters where we're not filling the pipeline with larger new projects. from that point of view this is one of the first quarters where we're not filling the pipeline with larger new projects I wouldn't say necessarily that the market might have gone a lot worse in Q1 versus Q4, but I think now it appears at our end, what that looks like in terms of investment into our product niches. i wouldn't say necessarily that the market might have gone a lot worse in q1 versus q4 but i think now it appears at our end what that looks like in terms of investment into our product niches

Speaker 2: Okay, cool. On the gross margin side, are there any effects from the cost savings from Natom that are visible in Q1, or should we expect those going forward in conjunction with higher volumes? Okay, cool. okay cool On the gross margin side, are there any effects from the cost savings from Natom that are visible in Q1, or should we expect those going forward in conjunction with higher volumes? on the gross margin side are there any effects from the cost savings from natom that are visible in q1 or should we expect those going forward in conjunction with higher volumes

Speaker 5: If we look at the fixed costs that we have taken out of Poland, they are part of this, and they are also visible in the result. However, it's not to the full swing yet, since the volumes are not completely ramped up. Obviously this is also a volume game, so some of those run rate savings will also come with more volume. That impact is not seen yet in the first quarter. That's still to come, but we're on a good way to get there. If we look at the fixed costs that we have taken out of Poland, they are part of this, and they are also visible in the result. if we look at the fixed costs that we have taken out of poland they are part of this and they are also visible in the result However, it's not to the full swing yet, since the volumes are not completely ramped up. however it's not to the full swing yet since the volumes are not completely ramped up Obviously this is also a volume game, so some of those run rate savings will also come with more volume. obviously this is also a volume game so some of those run rate savings will also come with more volume That impact is not seen yet in the first quarter. that impact is not seen yet in the first quarter That's still to come, but we're on a good way to get there. that's still to come but we're on a good way to get there

Speaker 2: Perfect. Just finally, there are many out there that discuss this in terms of a company that should have a normalization or getting closer to it by 2027. Just from your side, is there anything that contradicts this report or from what you see now with things going on? Perfect. perfect Just finally, there are many out there that discuss this in terms of a company that should have a normalization or getting closer to it by 2027. just finally there are many out there that discuss this in terms of a company that should have a normalization or getting closer to it by 2027 Just from your side, is there anything that contradicts this report or from what you see now with things going on? just from your side is there anything that contradicts this report or from what you see now with things going on

Speaker 5: It's very difficult to predict the future, I've learned. I think the big defining parameter here will be what happens in the Middle East if this gets prolonged and whether the world economy gets dragged into something that is slower for longer. I guess my crystal ball on this is just as clear or as cloudy as yours. I'm not sure I'd like to make any statements on this one, but nothing I would say from the first quarter specifically contradicts, you could say, your narrative. It's very difficult to predict the future, I've learned. it's very difficult to predict the future i've learned I think the big defining parameter here will be what happens in the Middle East if this gets prolonged and whether the world economy gets dragged into something that is slower for longer. i think the big defining parameter here will be what happens in the middle east if this gets prolonged and whether the world economy gets dragged into something that is slower for longer I guess my crystal ball on this is just as clear or as cloudy as yours. i guess my crystal ball on this is just as clear or as cloudy as yours I'm not sure I'd like to make any statements on this one, but nothing I would say from the first quarter specifically contradicts, you could say, your narrative. i'm not sure i'd like to make any statements on this one but nothing i would say from the first quarter specifically contradicts you could say your narrative

Speaker 2: Yeah. I guess from my side, it's you have an insight in the projects and the projects that are postponed and so on, and the project sizes that we're discussing. In that sense, has there been many postponements? Yeah. yeah I guess from my side, it's you have an insight in the projects and the projects that are postponed and so on, and the project sizes that we're discussing. i guess from my side it's you have an insight in the projects and the projects that are postponed and so on and the project sizes that we're discussing In that sense, has there been many postponements? in that sense has there been many postponements

Speaker 5: To date, we've seen very little of any change in that comparing to how we've been trending the last, well, three to six months, depending on segment. To date, we've seen very little of any change in that comparing to how we've been trending the last, well, three to six months, depending on segment. to date we've seen very little of any change in that comparing to how we've been trending the last well three to six months depending on segment

Speaker 2: Perfect. Thank you so much, Martin. That's all from my side. Perfect. perfect Thank you so much, Martin. thank you so much martin That's all from my side. that's all from my side

Speaker 5: Thanks, Daniel. Okay. I don't see any more hands in the air, which means that we will bring this interim presentation and earnings call to an end. Thanks a lot everyone for listening in, and if I don't see you before, I'll see you in a quarter's time. Thank you and bye-bye. Thanks, Daniel. thanks daniel Okay. okay I don't see any more hands in the air, which means that we will bring this interim presentation and earnings call to an end. i don't see any more hands in the air which means that we will bring this interim presentation and earnings call to an end Thanks a lot everyone for listening in, and if I don't see you before, I'll see you in a quarter's time. thanks a lot everyone for listening in and if i don't see you before i'll see you in a quarter's time Thank you and bye-bye. thank you and bye-bye