Thank you. Good morning, and thank you for joining us.

Today we are hosting this audiocast from a sunny Årjäng in Sweden, where we will later this afternoon open a new factory, another important step forward for our group. First, of course, we will present the year-end report '25.

This is a report that shows record results, that we've been able to execute our HANZA 2025 strategy as according to plan, and also that we now enter the next phase, HANZA 2028, on a stronger position, even stronger than we originally anticipated. Let's begin then with our business model.

It remains unchanged, and it's increasingly relevant. Our model is to create these manufacturing clusters.

It means that we are not just offering manufacturing, but we're also offering our customers, the product-owning companies, to consolidate their suppliers. This gives a number of advantages, of course cost-wise, but also quality and delivery accuracy.

We also see now in this world, which is clearly marked by the geopolitical uncertainty, that there is a need for supply chain restructuring, and that's where our model has proven really strong. The business model is one thing, but execution is the name of the game.

We have a very clear execution plan. We do it phase by phase.

Since start, we have developed in these phases you see on this slide. Each phase has had a clear operational and financial target.

The idea is when we enter the next phase, we should do it on a certain higher level. That's the goal of a phase.

'25 was all about balance and scale and building this robust European platform, and we will soon then launch HANZA 2028, which will be next step on our journey. If we then look at the agenda, we will run the normal disposition.

We will have the progress report. Lars Åkerblom, our CFO, will talk about ESG and financial development.

We will have some outlook and, of course, the Q&A session. Please use it for any questions you like.

Progress reports, the highlights of '25, actually. This was a year, another year of structured execution.

One year ago, we also, when we launched Q4 '24, we were also sitting here opening a factory in Töcksfors, it's about 20 km from Årjäng, and that has been really important, a new assembly building. Then in March, we completed our Leden acquisition.

That's a company with units in Finland and Estonia. It also led to an increase in sales.

When we buy companies, not only can we find cost synergies, but many times also sales synergies. That was the case with this acquisition, that led to an, a bit unexpected, increase in sales and also a strain on the profitability, which we reported last year.

It was good. This acquisition came with a number of nice factories.

We see one, a brand-new sheet metal factory in Oulainen, a fantastic unit. Then in March, we launched our defense program, Lynx, supporting the defense industry while safeguarding then the capacity for our other customers.

As a part of that, we also acquired a company called Milectria. Signed the deal in July and waited for the approvals from the authorities and were able to close the deal in October.

A big part of '25 has been about establishing this dedicated defense platform. Moving on in the year, just a couple of weeks after closing Milectria, we did a truly great acquisition.

We bought a company called BMK. I would rank this as one of the, or maybe the, best EMS company in Europe.

We've been chasing them for many years, and finally we could agree. It's a company with the main unit in Augsburg, you see it on the picture up to the right.

The sales is about 3.3 billion SEK. Normally when you have an EMS company that size, it's scattered over many different kind of factories.

In this case, it was a main unit, which really give advantages. In November, then we had to respond to this increased demand I mentioned, we added a new factory of 10,000 square meters in Oulainen, next to the one you saw in the previous picture.

December, we were done with a factory that we're going to inaugurate this afternoon, the official opening today. January, we were able to close the deal with BMK, got to all the approvals in time, and also we got a very nice recognition.

We were awarded Supplier of the Year by 3M among more than 6,000 other suppliers, a really good nice proof of our operational reliability. I was then allowed to go to Minnesota to receive this award, and it's not because of me, but the fantastic people we have in HANZA, but a really good validation of our execution quality.

With that, I will leave the floor to you, Lars, to talk about ESG.

Thank you, Erik. Starting with the ESG and the main activities that we have done in 2025, and of course, mainly focus on the CSRD reporting that we will do for the first time, including an audit for those figures now for 2025.

Also to integrate the acquired companies Leden, Milectria and starting up with BMK now to involve in the ESG, and then not only on the climate, but also on all the other aspects on ESG, making sure that we have the same follow-up and ways for working with the acquired companies as we have within sort of the old HANZA. We are also focusing on cyber security, of course very important, especially when we are entering into the defense sector and with the Lynx project that Erik talked about.

You see the KPIs on the right. The accidents or incidents are on a stable level, going down a little bit.

Increase in waste, hazardous waste and energy is mainly due to in hazardous waste that we closed down a factory and had the one-time effect, and the energy is due to Leden acquisition, which the type of production they have have a higher use of energy. Looking into the figures, as Erik said, we have a really strong quarter that we are reporting now and a strong 2025.

I'd like to start with sort of the overview of where HANZA is right now and the development. We are right now on 1.8 billion SEK in sales.

If you take that times four, you are a little bit about 7 billion SEK in sales, and we reached 9% margin in Q4. If we look from the pro forma figures that we also had as a financial target, including the companies that we acquired during 2025, we are about 6.5 billion SEK and with an 8.3% margin.

I also like to highlight what you see up to the right, the development of the profitability within what we call Old HANZA, excluding the acquired companies, and we see the downturn in the beginning. We bought Orbit One, had a little bit lower margin in the beginning, and then we were able to increase the profitability.

We also had an effect on the economy in 2023. We really proud and now to see that we reach close to 10% in the Old HANZA without the acquisitions.

By that, we can conclude that we've fulfilled all the financial goals that was set for HANZA 2025, and we go into the HANZA 2026 with a really strong profitability and a strong company. More details looking into sales: we grow by 40%, and organically we grow by 10% in the fourth quarter.

Again, as I said, the sales in 2025 were 6 billion SEK, an increase of 24%, and organic growth of 3%. The earnings: 9%, comparable units close to 10%, a quite rapid and strong increase of profitability.

Financial net, a little bit higher cost compared to last year, and that is of course due to that we have a higher interest-bearing debt. Earnings per share increased to 1.65, and for the year we reached 5.38 in profitability or earnings per share.

Looking into the cash flow and we continue to have a strong cash flow. What you see in the graph to the right, you can see that we have an effect when we do acquisitions.

We've been able to increase or improve the working capital, and a year ago in Q4, we saw the effect of the Orbit One acquisition, and now we see an effect on the Leden acquisition. CapEx is continue to be on a lower level compared to a couple of years ago.

If we continue to have this strong organic growth, we will of course need to continue to invest and maybe increase the CapEx a little bit. We decreased the net debt if we take away the effect of the acquired companies, and we are on a quite good level if we compare the net debt towards the EBITDA.

We are on 1.9. We have set a financial target to not be above 2.5, we are well below that target.

The board of directors, they propose an higher dividends. They propose 1.50 SEK per share.

One comment there is that based on the today's number of shares, that will be approximately 94 million SEK in dividends, but the owners of BMK that owns 27% of HANZA today, they have an obligation to pay back the dividends as a shareholder contribution, the net dividend will then be 69 million SEK, which is approximately 28% of the net result in HANZA. Our dividend policy is to pay out dividends of approximately 30% of the net results, we are on that level that we have in the policy.

Looking into the different segments, we have Main Markets, which is approximately on the same level or in organic growth. The growth is due to acquisitions.

Here we have one customer in Germany that, compared to the quarter four last year, have decreased a lot in sales. If we exclude that customer and that effect, we actually have an organic growth as well in the Main Markets.

We reach 7.1%, and for comparable units, 7.8%. Then we go into the Other Markets, and here we see really strong organic growth and quite substantial increased of profitability.

If we go back to what we said in Q2 and in Q3, we said that we saw an increased order intake and expected to see on organic growth in Q4. This is what we see right now.

The sectors that we've been choosing to focus on, energy, defense and those kind of sectors, are growing. We also have a minor effect that we sold some components that we had in stock that increased the sales.

A strong quarter both in both market, but especially then in Other Markets. By that, also the ownership structure and the biggest change in January is, of course, that the three owners of BMK received their shares and are now on the list of the biggest shareholders.

I also like to highlight the fact that both Erik, the CEO, and other top management have shares in HANZA, 1% of Erik, and in total, 1.5% of the owner belongs to the top management. Now I leave back to you, Erik, for the summary.

Thank you, Lars. Let's have a quick summary then.

We have now created this European platform that we were aiming for. You see it illustrated to the left.

HANZA is about manufacturing in Europe for Europe. We have five clusters, you see on the map here in Europe, but we also have some stand-alone units, we call them Gateways.

These are specific factories for specific customer needs. The clusters are located then in Europe.

About 5,000 people in total. Now our original ambition for this phase was to enter HANZA 2028 at the 6.5 billion SEK level, but we see now that we enter at approximately 10 billion SEK, including BMK, which is then over our own expectation.

We've done this, Lars explained this, that we have our financial discipline intact, really important to do this quick growth with a strong cash flow and a good strong balance sheet. We also see that the structured trends, they are supporting our direction and the Lynx program, which is important not only for HANZA, but that it's really important to support the defense and security situation is going really well.

We started that in the Nordic countries, and now we are expanding that in Germany. On the March 10th, we will have our Capital Markets Day, and then we will outline how HANZA 2028 will accelerate profitable growth from this new level.

I hope that you will be able to attend then. With that, we are ready to take your questions.

Yes, good morning. Thank you for taking my questions.

Firstly, I'd like to ask a bit on organic growth in the respective segments. In Main Markets, you stated that it was mainly due to one customer behind the somewhat slower organic growth, and then in Other Markets, you mentioned the component price impact.

Could you quantify that and what it mainly related to? Thank you.

I can start, Erik. Hello, Anders.

The impact on the one customer in Germany wouldn't mean that we would have the same organic growth in Main Markets as we have in Other Markets. Also, the component that you mentioned does not have big impact.

The major impact on organic growth is order intake, new customers and existing customers that are increasing the volumes. That's the main driver for the organic growth in Other Markets.

I can also add to this, Anders, and thank you for calling in. For us, it's also a bit complicated that we are also transferring orders between the clusters in a certain way according to the customer's expectation.

We have seen that we need to further explain this, and that's why I'm writing in the CEO letter that on the Capital Markets Days, we will increase our financial presentation a bit, you will get more information how this works internally because we understand it can be a bit confusing. I think that the main thing is in this report the top-line, the growth.

Yeah. No, makes sense.

I'd also like to ask a bit on that theme. You allude to it, but just to have it clear and transparent, the sort of margin development between the two segments, quite diverging, obviously.

The strong performance in Other Markets, simply operating leverage or something else here that we should consider to a greater extent, such as the sort of component comment you made, or something like that?

It's connected to this, and we will really go through this on our Capital Markets Day to explain more how this works. We need to give you more information package, but what we see and what I think is important is Lars mentioned that the comparable units, that we have been growing then from when it was down to 5% in Q1 last year to 8% in Q3, and then we saw up to 9.9%.

That's a combination, of course, of our programs increasing the margin and the organic growth. There are two components here driving the margin in the fourth quarter.

We would have increased the growth even if it was flat sales, but these two things combined makes the good margin in the fourth quarter.

Makes sense. A final question from my end, if I may, on defense.

Could you give any update with regards to how large share of group sales is from the defense industry now?

A very clear answer: no.

Please,

please come on our Capital Markets Day, because this is also a request we get many times about the customer segment. We will do something about it.

That's also what I'm indicating in the report. You will get more information the 10th of March, in just two weeks.

I'll be there. Thank you.

Thank you.

Thank you, and good morning from Årjäng. Just to clarify on this question on the margin, if correct understanding, there is no sort of extraordinary effect that is boosting the other market margin in the quarter?

That's correct. As you see, we always take both positive and negative one-time costs, we disclose them and take them off the adjusted EBITDA that we report.

No one-time effects on the margin.

Perfect. This is sort of a margin level that you target going forward?

There's no unusually high mix effects or a normalization to expect going forward?

We are not giving any forecast. What we also say in the report is that don't sort of focus too much on the different segments.

It can be up one quarter and maybe a little bit down the next quarter. The most important is to view the HANZA overall margin.

We have deliveries within the segments that has an impact of the both sales and margin in one quarter. I think that the most important message is that we see quite strong organic growth in HANZA overall, and we see better margin in HANZA as well.

I can also make a comment on that, and that's the effect that Lars talked about with Orbit One that we acquired, and that was exactly at the same time as the recession in the beginning of '24, it downloaded the whole group's margin, and then we came back to 9.9%. Now we've done this large acquisition of BMK, and we said that they are running a bit above 7%.

That will also have an impact on the group, but we are also sure that we will be able to raise that margin quite substantially. That's what we're going to talk about also on the financial targets that we will present on our Capital Markets Day the 10th of March.

Thank you. That's very clear.

Just lastly, if you could give some more color on the main growth drivers for this quarter, customer segments, and yeah, that would be very helpful.

Then we're back to the previous question. Unfortunately, we're not able to do this right now.

We can only talk in general stating that, of course, defense is an important part, energy is an important part, and there are other parts as well. Stay with us and do visit our Capital Markets Day.

Then we will talk much more about our different segments and customers.

That sounds good. Thank you.

That's all for me.

See you later. Thank you.

Good morning, guys. Hope you can hear me well.

Of course, I'm interested in hearing all your comments on the margin development and the outlook for the organic growth, but I guess we will come back to that during the Capital Markets Day. I guess my first question will be regarding you've done some heavy lifting, especially in Poland, over the last year.

Are you through with this restructuring program currently? Are you happy with the current sort of plant set-up that you have?

Yeah. HANZA is not and will never be ready, but we are satisfied.

The fantastic management in that area has done a fantastic job, we are really happy with that. Also, saying that we'll never be ready, now with the BMK acquisition, we've got another really nice unit in Czech Republic, which needs to be integrated then in the Central Europe cluster.

There's always something new to do, but so far the work we did, both in Finland, Estonia, and Poland, has been really, really good.

All right. In terms of integration of both Leden and Milectria, are you through with this currently?

I would say that when it comes to Leden, we are done, and the dot over the 'i' was the acquisition of the second building in Oulainen. When it comes to Milectria, we are still running this as a certain project because, yeah, it's a bit technical, but in order to have a good offer for the defense industry, we keep these units separately as a platform for that growth, and we will do that for a time this year, but by the end of the year, that will be integrated into the rest of the group.

That's on purpose that we keep it as a special vehicle for the defense industry.

Yes, fair enough. Previously, we have seen that Leden is falling a bit behind on the margins.

What are the situation in Q4?

We said in the Q3 report, and that still is the message, that Leden is improving margin, and we expect Leden to be on the same level as the other sites in HANZA from 2026. In Q4, you have an impact on the profitability due to Leden, but it's continuing and progressing as we planned.

All right. Do you think that you might be able to reach the legacy HANZA margin level for Leden during 2026, or at what point in time do you think you might be able to reach this 8% or 9%, or whatever?

We have said during 2025 that this move of the factory and the increased level of orders from customers, taking care of that, led to a decrease in profitability. We took the decision to sort of take that cost in order to be able to deliver and satisfy the customer.

We also said that this is during 2025. From 2026, we expect that effect to go away, and we shall be back on normal figures.

If that is 8% or 9%, I will not comment.

All right. Fair enough.

I think my last question: previously, I think we've discussed that Milectria are running on a bit higher margin than the legacy HANZA. Can we assume that Milectria are running on a double-digit margin?

Do you think that's a fair assumption?

You're always trying to make us do forecasts, Oliver, but we cannot do that. We can say that the defense industry normally has a much stronger margin than the rest of the industry, and that's why it's so important also because the defense industry becomes the one that's pushing away other customers.

That's why it's so important, because they're paying better, to keep them as a separate part of HANZA, not jeopardizing the rest of our customer group, which is also really important. It's true, it's a higher margin, but you will not get any figures from that.

All right, fair enough. Thank you so much, guys.

Thank you.

Thank you. Just a final one from my end now that everyone's done.

I wanted to ask earlier about BMK. I know you don't like to do forecasts, but in terms of sort of the run-rate profitability of BMK, what's your expectation of your ability to scale up volumes in BMK and what would be the sort of potential timing of that, and could you share anything in terms of sort of the incremental margin contribution from that?

While Lars thinking on an answer not giving a forecast, I can give you some general picture on this.

I've

spent a lot of time now in Germany, and it's fantastic. It's really good engineers, and I spend a lot of time with the customers of BMK, and they have really received this in a good way.

We see, like we normally do, a push from the customers because they see that there are some advantages, of course, BMK being part of HANZA. That's the sales synergy that we also talked about in Leden.

That's one thing, and of course increased sales normally gives a better margin. Secondly, we do have, even though this is a very big company, we do have some synergies on the electronics and the purchasing side.

That should also help to do that. In general, what we always do is that we make sure that we get it up to our standard margin on 8%, and then we go for our long-term financial target, which you will hear in two weeks from now.

Lars, what would you add on this?

No, you spent a lot of time there, I spent a lot of time there, and we are satisfied with the acquisition and what we have seen so far. It's going to work well, I think.

Maybe also mention, Lars, that what you were talking about before, that the reporting system and all that is really progressing in this and all acquisitions.

You talk about the ESG reporting or the financial reporting? Both are of course important and a major part of the integration to get that up and working.

We expect to be able to present the opening balance and purchase price allocation, etc., in Q1.

I think also, Lars, that our auditors gave you some compliments the other day about how fast and how good you implement this in the financial reporting system.

They are satisfied with the work we do and how we integrate the acquired companies into the financial reporting. That is, of course, important to understand and get a understanding of the acquired companies and make sure we have internal control and control over the financial figures that they report, and then we report out to the market.

Very good. Thank you.

Thank you both. Have a good day.

Thank you.

Thank you. As there are no further questions, we will now move forward with the inauguration of our new factory here in Årjäng.

A remark: we have arranged a tour of the sites here in Värmland, and for those who are interested in visiting our cluster, we will have this guided tour on May 7th, and you can register by sending an email to [email protected], so that's [email protected], tour on May 7th. It is quite worth taking the time.

It is a very nice cluster, and we are opening again a very nice factory today. Thank you so much for your attention, and I wish you a good day.