Thank you, and welcome to the presentation of Nolato's first quarter of 2026. Christer Wahlquist speaking here and starting on page 2.

The first quarter—during the first quarter of 2026, we saw growth in both our business areas despite a very volatile geopolitical situation. The total organic growth, if we adjust for currency, ended up at 3% and was a little bit stronger on the Medical side with 5% and 1% on the Engineered side.

That summarizes to an EBITA of 260, and of course, the EBITA was strongly affected by currency headwinds, as we calculate to 7 percentage. We kept our margins on 11% and sustaining them in a good way.

Of course, our strong financial position with very good possibilities to execute our acquisition agenda remains. Turning to page 3, summarizing the Nolato Group.

The group consists of two business areas: the Medical Solutions at 57% of the total, and Engineered Solutions at 43%. Of course, it's two different markets, but behind the scenes, we are doing similar things, of course, with some different growth drivers and different key needed things.

The two business areas creates synergies by combining them to the customer interface. Then we jump to page 4, summarizing the first of the Medical Solutions.

Here we can see a 20-year graph of our development, and we are, of course, continuous sustainable growth with global expansion as a target. If we look in behind the scenes on page 5, we summarize the different focus product areas.

Of course, then we can start with the in vitro diagnostics, which this quarter had a good growth and ended up at 18% of the total business area. This therapeutic areas is a long-term growth market that we think it's has good potential for the continuous years going ahead.

The second one is cardiology, ended up also a growth, 7% of the total in this area. This is, of course, the area with the toughest quality demands.

Then we have pharma packaging, decreasing as a total of the as a share of the total, 11%, and this is an area that we entered into because we wanted to build ourselves strongly into the drug delivery area. Then, of course, we see the drug delivery increasing from 16 to 17% of the total.

This is long-term potential with delivery devices for the large molecules within pharma. Then we saw endoscopy and general surgery decreasing as a total of the of the of the total group, ending up at 20%.

We saw some some stock changes in that market. Then continence care, it's a high-volume market, building for future.

Jumping to page 6, focusing on the performance first quarter of Medical. As mentioned, we increased the the sales with 5%, adjusted for currency.

As I mentioned before, we saw growth in in vitro diagnostics, higher proportion of new products. We saw a continuous upbeat performance of the drug delivery.

We saw, as mentioned before, surgery contracted due to inventory adjustments, and other markets had stable volumes. The margin ended up at 11.8 percentage points.

We saw some negative impact from the in the quarter from growth in newer products that have not yet reached the planned volumes. Of course, resources for starting up new projects have some negative impact on the margin.

The expansion in Hungary linked to the large customer program within the drug delivery systems is proceeding according to plan. Validation deliveries was during the quarter according to plan, and late in the second quarter, we expect to have our first commercial volumes in that program.

Jumping to page 7 on the Engineered Solutions side, and of course here we are advancing our high-productivity manufacturing on a global scale, adjusting the customer base and growing in new areas. If we look on page 8, we are the focus different areas here.

We saw consumer electronics grow as a total of the as a share of the total, ending up at 11%. Here we are doing advanced products for smart homes, saw strong growth in that area.

The automotive was stable at 23% of the total. On the hygienic side, we saw some stock movements decreasing the total of the the share of the total to 13% from 15 before.

Others were also had some headwinds on the white goods side and also some on the forest equipment. Materials had very strong growth within the quarter.

This is, as mentioned, a little bit premium margins, and as a share of the total, it was growing from 18 to 21%. Summarizing the business areas first quarter, we saw 1% adjusted growth, very strong growth for the Materials at full 15%, adjusted for currency.

We saw, as mentioned before, strong growth in the consumer electronic market where the smart home products are growing, lower volumes within the hygiene affected by inventories, as mentioned, and stable volumes for automotive. The margin ended up at 10.6 percentage, and of course, was affected by the favorable mix with the higher proportion of Materials.

Good afternoon, Per-Ola Holmström, CFO, and group financial highlights on page 10. Net sales was in the quarter a 3% growth, ending up at 2 billion 357 millions.

Currency headwinds of 7%. Operating profit amounted to 260 millions compared to 271 millions last year, again affected by currency.

We had an unchanged EBITA margin of 11%. Tax rate was within expected range of 22%.

Cash flow from operating activities rose to 225 millions compared to 135. The change of working capital was lower than last year.

Net investments affecting cash flow decreased to 193 millions compared to 271, mainly because last year included an operating property in Poland of 69 millions. Return on capital employed for the last 12 months was 14%.

Net financial liabilities in relation to EBITDA on a low level, 0.5 times, securing flexibility for expansion. Turning to page 11 on some development on the sustainable side.

We have had a very long-lasting focus on sustainability, which we feel support our business offer to the market, it's creating opportunities for us. We have, during 2025, operated all plants with 100% renewable electricity.

We have then eliminated Scope 1 and 2 emissions, meaning that Scope 3 now accounts for 99% of our total carbon dioxide footprint. We have also launched very ambitious sustainable targets for 2030 that are guide developments in climate, circularity.

It's a very long-term focus, and we are ahead of our competitors and feel that this is gaining market positions and possibilities for us. If we turn to page 12, focus on the current situation per business area.

First, of course, we see on the Medical side continuous growth strategy, very high market activity, a lot of focus on innovation, sustainability. We have, in our base, a very broad customer base with very close, longstanding customer relationship.

We are expanding, establishment of operations in Malaysia and the expansion in Poland is ongoing. On the Engineered Solutions side, we are advancing our market positioning, not least in the consumer electronics, and we are on a good way establish positions in new product areas.

We see success in new products, new technologies, mainly data centers, that is very positive for the Materials side. We are expanding our operations in Malaysia.

On the overall, we have a very good possibility and focus on acquiring and adding new technologies to our portfolio, creating synergies to our customers. Thank you.

We are now opening up for questions.

Yes, hello. I would like to start off on a question since you mentioned data centers in the report, which is probably the hottest theme around right now.

I feel I have to ask if you can quantify the exposure you have towards data centers, and perhaps how much that part contributed to with growth in Q1?

I would say that it's still very limited numbers in a group perspective. Of course, it's supporting the growth rate very much, and it's coming from almost, yeah, very limited sales in that area.

It's standing for a substantial part of the growth.

Understand. Then on the sort of, I guess, risk of rising input costs, and I appreciate you move these on to customers with some lag, but just to get a picture of this since you have a lot of petrochemicals on the input cost side, and it's always difficult to track exact prices since there are so many different grades.

Can you help us with a rough indication on how much, with current price levels, you would expect material costs to rise going forward?

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

That is the range we do anticipate.

That's very helpful. Then if I remember my numbers from the last time in 2022 when we had an oil price spike, at the time I think you said roughly 60% of your total material costs were linked to oil in some way and you had roughly three to six months lag on moving this forward.

Are those rules of thumb still valid or have things changed since then?

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

Okay. Thank you, that's very helpful.

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

I understand. A final one from my end on Medical, and you mentioned these new products that aren't quite reaching the planned volumes that you had expected.

Can you go into a bit what the reasons are behind this and if there's any structural issues we should be afraid of or if this is just temporary?

It's should be a little bit nuance on that. The ramping is, of course, a little bit delayed, but during a normal ramp, you see those lower volumes during a period.

It's not off-track. It's more the ramp is ongoing and not on profitable volumes yet, there is no structure, no change in that.

Okay. Anything on why it's slower than expected or is that just always an uncertainty?

Is it within normal estimate risk, to say?

I think it's close to according to plan, it's more linked to the sort of introduction to the final markets.

Understand. In that case, that's all for me, thank you.

Thank you.

Thank you. This is Oscar Lindström from SEB.

My first question, just to continue on Adrian's question on the potential margin pressure in the near term. I think you said 3 to 4 months, Q2 obviously will naturally have a lag effect where you don't have a lot of price increases.

Is that how to interpret it? You should see in Q3 more of sort of a normalized effect on the EBITA level?

I think the timing would be more that the effects during April is very limited, actually, and that we will see a spillover into Q3 instead. That is more the timing we would see.

All right. Then just also just to clarify the 5 to 10% price increases, how should we interpret that?

Is that across the board, or is that a number sort of or a share of your total sales that you're going to push the 5 to 10% price increases to customers?

The 5 to 10% price increases, that is what we are facing from our suppliers of the actual raw materials we're buying hit by the fuel pricing. That is an average.

It's, of course, different percentages, high ones, lower ones, and that is our estimated average we do see going forward the next coming months. All right.

When you refer to 1.6 to 1.7 billion, that would be the plastic raw mat, I suppose. Of that, you have an increase of 5 to 10%, and those will be passed through to your customers.

That's how to interpret it?

Right, exactly.

All right, perfect. Thank you.

Then I just had a question on the GLP-1 ramp-up from late Q2. I think you've previously mentioned that you would sort of breakeven when you started with the validation sales.

Just wondered if you could add some comments to the incremental margin profile of the commercial volume. Will you have a very high drop-through, or does cost increase a lot when these commercial volumes are shipped?

Like we have explained earlier, we don't see any large negative effects going forward. Of course, we won't have the margins expected at a more full scale operation.

We don't see that the margins would turn down dramatically based on that startup. That project is, of course, one that we're explaining the margin in this Q1 as well because we already have most of the cost base we are going to use to produce that in larger volumes as well.

There is a certain negative effect in the start, but we don't see that to be any substantial negative effects going forward.

Got it. That's helpful, thanks.

Then just finally, sort of a broad question, I suppose, but given that you have very broad exposure in terms of offering and also geographically, just want to hear your thoughts on the geopolitical uncertainty. Has this caused a big shift in demand from your customers, which could potentially affect volumes near term?

Or do you feel like you're resilient in even in the Engineered segment?

It's interesting. We've seen some volatility over time from different segments and markets.

Some are in some periods a little bit cautious. Then again, short time later, they are sort of afraid of some lack of supply, then they increase.

As an overall, I think it's been volatile but stable underlying. It could be, looking forward, it could also affect maybe single quarters with some stronger or some weaker sales.

There will be some volatility connected to this geopolitical situation.

All right. Perfect.

That was all for me. Thank you very much.

Thank you.

Okay. Can you hear me?

Sorry about that.

Yes.

Perfect. Hi, it's Anders at Nordea.

I wanted to ask Christer and Per-Ola some questions. Firstly, on sort of the Materials exposure that we discussed.

With quite solid growth in the quarter, it would be interesting to hear you elaborate a bit more on sort of durability of this growth. Is it mainly a result looking specifically maybe at data centers, mainly a result of specific customer programs or should we view it as more broad-based exposure in sort of this end market?

Yes, I think it's a good question, and I think it's a situation where we are going into and have been going into new markets for some time, and it's not connected to a single customer. It's a broad growth across different sectors.

Of course, we talk a little bit about data centers, but it's also some defense, it's across different customers and different markets. We feel that of course, it was a very strong growth on a high level this quarter, but we see good potential for continuous growth within this area.

Very good. Thank you.

Sort of just taking data centers as an example, are you able to share anything sort of in terms of how many customers you're selling into in that sort of vertical?

We have numerous customer, numerous different smaller projects that adds up to this.

Okay. Thank you.

In sort of surgery, you mentioned some inventory adjustments particularly early in the quarter, as I understood it. Could clarify a bit sort of if you think we should view this mainly as sort of channel inventory normalization or is there any sort of end demand softness here?

We think it's volatility in the supply chain still going on.

How do you arrive at that sort of view? Just so we understand that.

Of course, we monitor the sort of end market movements and what kind of end products our deliveries are going into, and then we monitor them, and then we compare that with our deliveries. Then we see volatility.

In some period, we are delivering more volumes than the sell-out to the end market, and in some periods, we are selling less than the end market movements. Then, of course, that is movement in the supply chain.

All right. You're doing your homework, in other words.

That wasn't meant to sort of question that, more sort of the rationale

so

we understood that comment. Thank you.

Finally, I wanted to ask a bit on sort of, you're talking about the IVD growth and sort of newer products taking larger share. We discussed sort of the Novo ramp-up in Europe, but with some volumes not yet at commercial levels, could you break down a bit more what you're seeing, not just in terms of the previous discussion, but by end market, sort of IVD, drug delivery, surgery, and what needs to happen for the new product ramps to move from sort of margin dilution to supporting the margins over the next couple of quarters?

Is it mainly a factor of volumes, or is there anything else sort of in that ramp-up that's important to consider?

Of course, during the early volumes in a new program, we have some additional costs because we are then, of course, making sure that the quality is working in all levels. We have some extra costs to make sure that we are not delivering anything out of specification.

Then gradually, when volumes and time elapses, then we can reduce our cost base of producing. Of course, we get some efficiency of volumes.

That's normal thing, and now we have quite large programs that are expected to ramp, of course, it's hitting in this quarter.

Yeah. Very good.

Appreciate the answers. Have a good afternoon.

Thank you.

Thank you.

Can you hear me?

Yes.

Great. Thanks.

Taking my question. I also have a follow-up on this surgery market area and the inventory adjustments.

You have had that quite some time. It would be great if you can talk to us a bit more about this volatility and maybe comment on the product pipeline quality and the underlying market growth, what you're seeing there, and also your market position in this area to get an understanding of the underlying trajectory.

We entered into this market some years ago with the view that there is changes coming in the market, more robotic surgery coming, and so on and so forth. That change has been a little bit slower than we expected at that time.

Of course, we think that change is something that is positive, and that's why we entered. The volatility, it's very long supply chains in the surgical market, and then you can have swings with different inventories in different levels in the supply chain.

It's been more volatile than we expected, and we foresee that for some time coming as well.

Okay. All right.

We have to accept that, I guess, going forward as well. One thing about the silver input cost that you had struggled with a bit in Q4.

How did that develop, and have you taken care of it on current silver prices?

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

Okay. I'm just curious about the Materials area.

How much is volume and price and mix effects in that 15% growth that you talk about?

Of course, there are some effects coming from the price effects, but I would say that the larger part of the 15% is definitely coming from volumes.

Good. My final one is on capex, if you can update us on what to expect for '26 and maybe also for '27.

Yes, we commented that after Q4, being 650 to 700 millions for the full year 2026. We are still at that expectation, 650 to 700.

Good to know. Thank you.

Thank you.

We have explained the maths behind it and our best assumptions. The effects during Q1 were very limited, and it's an onward effect, and we did say most of that is during Q2, and some will spill over into Q3 if it stands where it is right now.

I think that is the explanation we can give in uncertain areas.

Thank you all for your interest in Nolato. Thank you.