A warm welcome to the presentation of Tongen's report for the second quarter 2026. It's the first quarter as a listed company, it's a milestone for for us.

I'm Nina Bergman, and I'm CEO of Tongen, and with me today, I have Per Andersson, our CFO. As said before, after the presentation, we will leave room for questions.

All right. Let's Okay.

Before we go into the second-quarter financial result, a brief introduction to Tongen. Tongen is a acquisition-driven Nordic industrial group.

We are investing in companies in the three business areas that you see on the right hand. It's We invest in solid, profitable companies with a strong value proposition.

The businesses is characterized by regulatory environment leading to high barriers of entry and recurring revenue. The businesses is also pushed by underlying spending, such as public sector spending, including defense, infrastructure, but also trends of reshoring and stricter regulations.

We source company to a great majority in-house, and that creates long-terms relationship building for the future and also attractive valuations. Important for us is to have a steady phase of acquisitions throughout the years, and we aim to acquire four to six companies per year.

The focus is profitable growth in combination with strong cash conversion and and that in combination with a low leverage and and a strong cash position that will ensure that we will be able to invest in great companies in all times going forward. All right.

Then this the the second-quarter highlights. We must say that we are really proud of how the businesses is performing and the continue the great development for the from the first quarter.

We continue the positive trend from the beginning of the year. It's a strong organic growth, both top-lined and in profitability, but also new companies being acquired during the year also has strengthened their sales and profitability.

It's also a dedicated work to increase the profitability and cost control. All business areas deliver overall in line with expectations, and businesses towards infrastructure, container services, and emission control, those delivers beyond expectation and receive strong demand in markets also including defense and public sector.

Really important, we have a high cash conversion and that in combination with the primary in IPO, Tongen is now in a net cash position. To have a strong balance sheet and to be self-funded, that is key for us in all ways to always stem strong and to be able to do acquisitions in a steady phase.

In the second quarter, we acquired one company, MT Smidesteknik, a niche company that will strengthen the business area Services. In addition, we have a really strong M&A pipeline that will be executed in the second half of the year, and that is through all the business areas.

Okay. Looking at the figures overall for the second quarter, we have a revenue of 647 million.

It's a growth of 60% compared to last year. EBITA 88 million SEK and corresponding to a margin of 13.6%, and it's a total growth of 116%.

The growth is a combination of organic growth, acquired company, and increased profitability in some companies taking actions and also via dedicated work to increase margins. Overall, businesses are performing better compared to prior year.

We see that last year, the last year's second quarter were impacted by a waiting industry and such as celebration day. Cash conversion continuous strong cash flow, 65 million for the quarter, slightly lower than the the first quarter due to revenues higher in June.

Given the cash flow and the historic low depth and also the primary in IPO, we are now in a net cash position. We have also done a refinancing in connection with the IPO.

Right. If we look at the development of the the 12-month full years and also taking into consideration the if we acquisition-adjusted figures as we were the owners for 12 months, we are now in a revenue of 2.4 billion SEK, and that's 359 million SEK and and almost 15% profitability.

Now looking more into the details, Per.

Thank you, Nina. Let's now look more closely into the organic growth for the quarter.

First, we're really happy to follow up a very strong first quarter with a solid second quarter when it comes to organic sales and EBITA growth. In Q2, net sales increased from 403 million to 647 million SEK, corresponding to a total growth of 60%.

45% of this growth came from acquisitions, while we had 14% organic sales growth with several companies in the portfolio delivered solid growth numbers. The main growth came from the business area Service Solutions that continues to grow at a high pace in this quarter as well.

The currency impact was about 1%. In total, our currency exposure is quite limited, with the operations in Finland and Norway being mostly exposed to other currencies than SEK.

EBITA increased even more than sales in the quarter and grew 116% up to 88 million. During this quarter, we have adjusted for 9 million in IPO expenses that have been added back.

Acquired EBITA grew 101%, which is obviously more than sales growth. The EBITA margin in the acquired companies have in general been higher than what the previous average has been, which explains the higher EBITA growth compared to sales.

The organic EBITA growth was 13%, and two comments on that and the reasons behind that are: first, sales growth, especially within Service Solutions, but as Service Solutions is an business area with lower margins, the EBITA growth also came from the other business areas; second, as Nina said, cost and efficiency improvements. Several companies have improved margins compared to last year due to efficiency measures, both from cost cuts, but also in terms of scalability, meaning they are growing sales with an almost fixed cost base.

The currency effects gave about a 2% contribution to EBITA growth. As I said before, we have fairly even in- and outflows in most currencies.

The only currency with an uneven flow is Chinese yuan, where the SEK strengthened compared to last year. Looking at the organic and acquired growth for the first half year, and as I said on the previous page, we are really happy to continue delivering good organic growth in the second quarter as well, which together with the first quarter gives a very strong first half year.

In total, sales grew 58% in the first half year up to 1.2 billion SEK. 42% of that was acquired, while the organic growth was 16%.

On EBITA, we saw very high growth of 130% in the first half year, ending at 171 million. For the half year, we have adjusted for in total 17 million in IPO expenses, which has been added back, while we have excluded 34 million in profit from sale of Svensk Fordonsladdning, which was a minority shareholding that was divested in the first quarter.

Of the EBITA growth, 103% was acquired, while the organic growth was 27% for the first six months. For this period, we saw organic growth in all business areas, with particular focus on Industrial Technology and Service Solutions.

One should also take into consideration that during last year, some companies were a bit negatively affected by external events that caused us to take action and to cut cost and improve efficiency, and we see quite good effect on that now, which is also a reason for the very good EBITA growth in the first half of 2026. Moving on to the EBITA development in a historical perspective, we see a gradual build-up with a steep increase in the first quarter this year that followed our four acquisitions that was completed by the end of 2025.

There is some variation between the quarters, but the underlying trend is clear and we have managed to increase both EBITA and margins substantially over time. With a portfolio of now 23 companies, we expect a steady development going forward with EBITA margins trending towards our target of 14%.

Cash conversion is a key focus area for Tongen, and when measuring cash conversion, we include both working capital changes and capital expenditures. In the second quarter of 2026, we had a cash conversion of 83% in relation to EBITDA.

For the first half year, it was 92%. Although very strong numbers, those are slightly below what we historically performed, and the reason in the second quarter is mainly that working capital had a negative impact.

The reason for that is that we had quite high portion of the total sales in June, meaning that we had some build-up of receivables by the end of the quarter, which was on higher levels than normal. Although we see very good cash flow in July thanks to that.

Growing on to capital structure, we ended Q2 with a very strong financial position and a return on capital employed of 18.5%. That was a very good improvement from the first quarter, which was 17.7%.

During this quarter, we saw a combination of strong cash flow from the operations, but obviously the proceeds of 400 million from the rights issue had a major impact that put us in a net cash position. Also worth mentioning is that we do have very good operational cash flows, and the one acquisition we did in May, which was done before the IPO, was actually paid cash.

To sum up, we know we have a very strong balance sheet together with a very good cash flow from operations, and together that gives us a lot of firepower to execute on our M&A agenda going forward. With that, I will leave over to Nina to tell you about our recent acquisitions.

Thank you. The acquisitions that was done in the second quarter is MT Smidesteknik.

It's a niche company in the BA Services. It was acquired in mid-May.

It's located in Järfälla, outside Stockholm, and it performs constructional special forging services, mainly for infrastructure and real estate projects. Customer and projects is, for example, they worked to the subway in Stockholm and and projects like Slussen.

The company has a revenue of approximately 60 million and a margin of 20%, and it started its business according to plan. In addition, we did two acquisitions in the first quarter.

It was Pommeia Plåtslageri. It's an add-on acquisition to Görfastgruppen and the BA Services and delivering sheet metal work.

Regulatory expertise strengthened by Trainor Solutions, which are providing solutions for the public transport sector. We also did divestment of three real estates in in the quarter, and that's is according to our strategy and to to focus on return on on capital.

It's a combination of a leaseback, but also real estate that is not being used. That is a strategy going forward as well.

Yeah. Now let's turn into the business areas, starting with Regulatory Expertise.

Regulatory Expertise is our largest business area, consisting of companies that operate on markets with a high degree of regulatory frameworks. That can be, for instance, the airline industry, fire and hazardous environments, and critical communication.

In Q2, we saw good growth in both sales and profitability, with EBITA margins expanding from 15.4 to 17%. Looking at the first six months of the year, the development was even better, with the EBITA margins above 18%.

Within this business area, we had mixed development between the companies. Companies exposed towards the market for emission control, data centers, critical communication, as well as the energy sectors, are experiencing high demand, while other sectors like lighting products, as well as some connected vehicles, showed some slower sales.

Given the very strong first quarter we had, that was not a surprise to us. Although we saw some mixed development in sales, EBITA and the margins developed very well.

That was due to positive mix effects, as well as some additions from the acquisitions made in last year. In total, a very good financial performance for our most important business area in the quarter and in the first six months, really showing the strength of our diversified portfolio that can really handle different developments on different markets while still growing margins.

Going into Service Solutions, which is our business area for specialized professional services to different industrial customers. Service Solutions followed up a very strong first quarter with an even better second quarter.

The development of the KPIs were solid, both organically and through acquisitions. Revenues in the quarter increased from 144 to 236 million, which was almost entirely organic growth.

The growth is coming from all companies in this business area, which is the same as in last quarter, while, as I said before, Görfast is growing at a highest pace. Görfast last year entered into some new contracts with public housing companies in the Gothenburg region, which they are now growing into.

As I said, the other companies also delivered very good organic growth. Looking into EBITA margin, it developed very well in the quarter, growing from 3.3% up to 9.7%.

We have actively worked to improve margins in this business area, and in addition to Görfast, the other companies are contributing very well to this improvement. One example of this is the company Elfcon, which is a niche company that provides container and repair services.

They had about 10% sales growth and managed to fully scale that on their cost base, which really contributed to a very good EBITA margin both for Elfcon and also for the BU as well. In total, we are very happy with the financial development of Service Solutions compared to last year.

We believe that although the growth might slow up a little bit when Görfast is growing into the new contracts, we believe that, not at least with the new acquisitions we've done, that this business area will continue to operate on EBITA margins in the range of about 10% going forward. Looking at our third business area, Industrial Technology, that contains niche industrial companies with strong positions in their respective markets.

In this business area, we had also a solid development in sales, EBITA, and EBITA margin for the quarter and the first half year. The EBITA margin increased from 13.6 to 17.2%.

Compared to last year, this business area has grown from one to three companies with the acquisitions of Wästcomp and Svemeko last year. The development in the number here is to a large extent driven by these acquisitions.

However, all companies are actually performing very well in the period, and the organic development for all companies has been very good. In general, the second quarter is very strong for NSI and Svemeko due to some seasonality impact, and we consider Q2 as a peak in EBITA margins seen in a larger perspective.

To conclude the financial performance in the quarter, I will go through our financial target. Just to start with, and as we said before, Tongen developed very well in this quarter.

Return on capital employed was 18.5%, which is above our target of 18%. By end of the first quarter, return on capital employed was 17.7%, and the improvement is due to combination of higher EBITA and a lower debt.

The EBITA growth was very high in the quarter, 116%. Our target of about 20% EBITA growth is set to reflect an average growth over time, meaning we will eventually grow into this target.

The EBITA margin was 13.6%, which is not very far away from the target of 14%. The EBITA margin normally varies a little bit between quarters, and our main focus is to gradually lift the margin to be above 14%.

Last, we target to be below a leverage of two times acquisition-adjusted EBITDA. As per end of June, we had a net cash position and no debt.

Over time, we obviously we will deploy the liquidity in acquisitions, but we will always apply a very disciplined approach to that capital allocation. Looking a bit ahead, we are fairly positive.

We believe in continued growth, both organic and through acquisitions, although organic growth will not be on the levels we've seen in the previous quarter. Our long-term goal is to grow organically at a rate above GDP, and we do that by operating on markets where we see a good long-term underlying demand.

That said, our total sales and EBITA will continue to grow at a high pace, and our M&A pipeline looks very good. We have completed three acquisitions so far this year, and we are quite certain that we will complete another two to four acquisitions during the fall.

With that, I will leave over to Nina to summarize the second quarter.

To wrap up, we are really proud of the financial performance and development of our businesses, and now looking ahead to execute on the coming acquisitions for the rest of the year, as Per said. Besides that, the focus is to continue to develop our companies, to drive profitability and cash flow together with the continuous organic growth and to continue to strive to the financial targets.

With that, we are really eager to start up the fall and continue the development of Tongen. With that, we hand over for questions from the audience.

Thank you everyone for listening, and I'm sure we have some questions.

Hi, and good morning, Nina and Per, and congrats on a strong first quarter here.

Thank you.

If we maybe start off in the Service Solutions here, very impressive figures. You mentioned a bit of the new contracts in Görfast, but can you maybe elaborate a bit more on the sort of driving forces here in the quarter and what you are seeing going forward in this area?

Yeah. One company is driven by the new contracts that they will so to say be into in the last half of the year.

This is a new normal level. We also see growth in the container service area, and we also see a positive development of the industrial services with the increased profitability.

What we are expecting is a continuous growth, but not the double-digit figures.

I think you can say that the development in the quarter comes from good sales growth in actually all companies in these business areas. Then we have two companies that have really improved their efficiency, which has contributed very well on the margin as well despite the high growth in Görfast.

Yeah.

Okay. That's very clear.

Sounds promising. On the same note on the sort of improved profitability in the area, assume Kundtorp is quite a big part of this.

How far have you come in sort of the profitability improvement here? Is there still scope for sort of further improvements in the coming quarters?

It is, so that's a still ongoing work to continue to develop that profitability. We must comment on Elfcon is in the container services, well, with the same fixed cost, to say, they are able to expand and grow on top line.

That will be straight line to the profit level.

I think looking a bit more on the composition in that business area, it previously consisted of three companies, two platform companies and one more of an Elfcon, a niche company. Now we acquired MT Smidesteknik, which is also more of a niche company with a higher margin.

Going forward, when looking at that business area, I think one way to also improve the margins here is to also look at these niche companies with normally a higher margin so we can build a good portfolio in that area.

Yeah. Okay.

Nice. That's very clear.

If we sort of move on to Regulatory Expertise, overall quite solid momentum here, but you mentioned some sort of softer demand, maybe particularly in the lighting fixtures here. Can you provide a bit more color on this and sort of the momentum here in the business going into H2?

Yeah. Just to start with, this is our biggest business area and obviously, this is more of a diversified portfolio than the other ones, meaning that some companies are performing well and some are not performing that well for the moment.

What we can see is that we have certain markets with very good demand, and as was said, lighting products, that's in particular some companies that are exposed to some markets when it comes to industrial lighting that has grown a lot before, now we see a bit slower demand. It could be various reasons.

Both that we come from quite a strong last year in that area and for some areas we also see some uncertainty among the customers. It's important to point out that with the companies we have with that type of products, like Olssons i Ellös and Molex, it differs a lot between the different customer groups.

For instance, the oil and gas sector is very hot, while it could be more of the construction sector that has a slower pace. It's not a product issue.

It's more of a different market characteristics, one could say.

Some degree of project that occurs in some quarter and can be recurring, but not every year or quarter, it can be a bit impacted by that as well.

Yeah. Okay.

That's very clear. A bit on the same note here, if we sort of look at the seasonality and the comparable effect here going into both Q3 and Q4 perhaps, could you please just remind us a bit of this and if there is sort of any specific things you want to highlight?

In terms of seasonality in the Industrial Technology, we have cleaning and coating, it's NSI that is performing best during the summer time, they have a strong Q2 and also going into the Q3, but then slowing off. It's also in the Industrial Technology, Svemeko, for road maintenance machines, obviously that is high season now for the summer, so that's the businesses is more seasonal, to say.

I think as I said, Industrial Technology had a margin of 17% in this quarter, and I believe that is a peak if you compare to the other quarters for that business area.

Okay. That's fair.

Sort of one final from me here for now at least. Of these five acquisitions you made here during H2 '25 and practically the sort of three you've done this year, what are you seeing in terms of organic growth in these sort of companies that we're not seeing sort of in your reported numbers here?

We see very very good growth in companies in the Regulatory Expertise, Däckmarine, for example, and also in Svemeko. The others are performing according to plan.

That's right as well, that the higher margin and expanding sales is also from the acquisitions that is not included in the organic growth, but all are performing accordance to plan or above.

Okay. Very good.

Sounds promising. That's all for me for now at least, I'll get back in the queue.

Thanks a lot.

Okay. Thank you.

Hello, Nina and Per, and congratulations on the impressive figures. A few follow-ups questions here from my side as well if I may.

Just starting off with EBITA margins here, you mention in the report that full-year EBITA margins is expected to be in line with your target and that's to be above 14%. Just should we interpret that as that it's expected to be landing around the 14% or are you rather expecting, I guess, meaningfully above that level given that the target is above 14% and not 14% specifically?

We are aiming for the 14%. That is the best view that we have now.

That's clear. Just a bit of a follow-up on a previous question here about the strong organic growth.

It seemed to be in Service Solutions and your comment that that is expected to gradually flow in the second half. Is it possible to pinpoint the timing of that when that large, to speak, was taken and in which quarter that starts meeting the tougher comparisons if you understand my question?

Also to just be clear, we see really good organic growth in businesses in all business area, but it's specific in the Services. That specific contract, that was won during the fall 2025, it's gradually in end of Q3 starting in Q4.

Just

to be clear on that, it's not just one contract, I believe it was a couple of four contracts that are over three to four years, and they started at different periods, it's not just one contract starting at one point of time.

That's clear. Thanks.

I know you don't break this out specifically, but if we look at the business area level and talk about organic growth, both on the sales level and on EBITA, is it fair to assume then that you had organic both sales and profit growth in both Industrial Technology and Service Solutions, whereas Regulatory Expertise saw negative development year-over-year?

That's correct on an overall level, but as I said before, some businesses in the Regulatory Expertise is growing as well. It's a combination, but I think that's the strength of the business model, right, as well, that some companies is performing beyond and some is meeting strong expectations.

Then it's a strength that we can balance out.

Yeah. That's clear.

Just a question on your comment during the, I guess, cash flow section of the report on working capital and your comments that there was a bit of working capital built due to high deliveries at the end of the quarter. Should we read that as demand strengthened in the latter parts of the quarter or was that more of a timing effect?

No, I think it was more timing and it was also linked to, as I said, Industrial Technology, which has their peak season. So

Yeah.

I guess you can read it as those companies were performing very well, although not included in organic growth.

Okay. Got it.

Just yeah, lastly from my side on the acquisition of Skövde Redovisningsbyrå. Is it fair to assume that that company won't contribute meaningfully to any external sales, I guess given its focus on providing, yeah, accounting services to your own subsidiaries, or should we model some external sales there?

That's right, but it's revenues of approximately 10 million and profits of 1 million, it will contribute a bit, but it's mostly to support us in providing services to our companies. It's a mix on that.

Also having a really good firm that delivers high quality support in accounting and payroll services.

That's super helpful. Just thought of one smaller additional question.

On the net financial items outlook there, I guess now, yeah, given the IPO proceeds and so on and the current net cash position, is it fair to assume that you will have a, yeah, I guess positive net financials in the P&L from the quarters ahead?

More or less, yes.

That's I assume we will have some positive interest income, however, in that item, we also have, for instance, we have

FX and

stuff like that,

so. That's helpful.

Thank you so much. That was all from me.

Thank you.

Thank you.

We had one more question from Rasmus Persson, and I can read it: "Could you elaborate on how the uncertainties within the supply chain are playing out?" We have that as an open because in some companies can be electronic components or other components that is a bit delayed in the supply chain, and that can impact the delivery or project delivery in a certain quarter.

We don't believe that it should impact the full year, but we see that it can be Q2 or Q3 that is a bit hard to predict. Okay.

It doesn't seem that it's no more questions, the next report will be the Q3 report, and that will be released on October 29. Then the year-end report is February 5.

Thank you all for listening in, and look forward to hear from you again next quarter.

Thank you.

Thank you.