Good morning. Welcome to Scanfil's Q1 2026 interim report webcast.

Together with me here are our CEO Christophe Sut, our CFO Mr. Kai Valo, and my name is Pasi Hiedanpää, I am the Director of IR, Investor Relations and Communications.

A couple of words about the practicalities: you have a chat box window in your screen, you can actually type in questions in there, and we will have the Q&A at the end of the session. Now, handing over to Christophe, please.

Thank you, Pasi. Welcome to everyone, and very happy to share today our first quarter for 2026.

First quarter, sharing a few key events, was rich in happening. As we closed the acquisition of MB Elettronica during January, and MB Elettronica is now a part of Scanfil and included in our numbers since January 22, which means that we had more or less two-thirds of a quarter with MB Elettronica.

We were happy with both getting that team on board, but also the—I will get back to it later—the development of that company during the quarter. We also, on the organic side, announced the expansion of our site in Suzhou, where we will double our capacity in order to support the customers that are asking us for more capabilities and more opportunities for business.

That's also a very positive element. Then, continuing on the development of the quarter, for the first time, you will see today our revenue in aerospace and defense carved out of the industrial segment, and we will start to report and give you a little bit more flavor on what is happening on that customer group driven by the fact that it's now reaching the critical mass of 10%.

I think that it's important that you get visibility, and growing extremely strongly, both coming from MB acquisition, but also from our existing customer and past Scanfil customers. Then finally, but not least, first quarter was also extremely active on what we call NPI, which is the new project implementation, which means that both the effort we made last year in gaining new contract is translating into activities in our factories, but also is preparing for continuous development and continuous growth.

As you can see, again, a very rich quarter in terms of organic development and activities to support our organic growth, but also on the acquired front. If we look now at key numbers for the quarter, we were pleased to reach €230 million, which gives us a gross total about 20%.

Organic gross was 6.5% in the quarter, which is definitely in range of our long-term target, I would say even above our long-term target, and we were very happy to see that it's now the third quarter in a row where we have an organic growth in the range of 6%, 7%, which is a very good number. In terms of comparable EBITA, we were at €15.6 million, which was a growth of 24% versus last year, driven by both the good performance of our acquired entity, but also the good performance of our existing site.

It's very pleasing to see the combination, after all I would say the changes that the first quarter was bringing to live, to see that both organically we bring new project, new customer, it create organic growth, there is a return on comparable EBITA, but also the acquired entity are performing well. Then obviously, it gave leverage.

Last year, we had a first quarter at 6.5% comparable EBITA, and this year 6.8%, which is again going in the right direction, which landed in a development of our earning per share, growing 17.4% up to 0.15%—€0.15, sorry. A positive development in the quarter, I would say, for all our key figures and the key metrics we're guiding on.

When we look at the revenue, I mentioned it earlier, we reached €229 million, almost 230, in the quarter, and this was both driven by organic and inorganic growth where both businesses were developing positively, as I said before, the existing part of Scanfil as well as the acquired entities. In terms of EBITA, we know that first quarter is usually a little bit weaker in margin, driven by seasonality, also some vacation in the Southern Hemisphere and Asia.

Despite that, we were coming out with 6.8%, which was definitely solid and stronger from what historically we have been able to deliver in a first quarter, and a total amount of 15.6 million, which was also a very significant amount for a first quarter. A real gap, and I would say both the development on revenue and the development on EBITA were definitely in the trend that we were expecting to reach our long-term guidance, and thus confidence in what we have iterated earlier in the year.

Now looking at the development per segment and for each of the region. America reached €17.7 million during the quarter.

Strong development of organic growth, we had 12% organic growth in the quarter. As we mentioned before, we are starting the second line of electronic manufacturing in Atlanta.

It's proceeding well. We have an unseen amount of new project getting implemented there.

I think during the first quarter, it's more than 150 products that we have been putting up live in our Atlanta site, which is a very significant amount. You might not be able to relate to that, but I can tell you it's something that is very sizable.

Margin was step-by-step recovering in the Americas from the previous quarter, driven both by good performance of ADCO, but also by those contracts starting to build volume and starting to build momentum. I believe that this trend will continue step-by-step during the coming quarters in the year, and we will also support a continue very strong organic growth as well as growth from acquired entity in that region.

Positive to it and positive to the development. APAC was once more very solid, reaching 7.4% of comparable EBITA, which was an improvement of 0.5 against last year; a solid level of revenue of €55 million, which was also an increase against last year; and having an organic growth here also in the range of 10%.

A very solid development for our APAC region. As I mentioned before, we will have to sustain this growth.

We did last year an investment in Malaysia, it's step-by-step taking speed and getting filled. The next step will be, as we mentioned in the quarter, an investment in China in Suzhou, where we have a significant amount of business and need to support those new businesses by expansion of the site.

I will say on the number, it's a solid quarter, it's a stable and solid business, and growing at a good pace. Moving now to Central Europe.

Central Europe, a lot of things happen in that region because this is where from now on MB Elettronica is consolidated, which obviously give a jump in terms of revenue. If we try to break a little bit the region, what we can see starting by the organic part of Scanfil, the region grow 3% in the quarter, which is a combination of two elements.

We continue to have a very solid development for our Polish entities. You will see later, but we can see now the rebound of the energy and clean tech business that will start and that has started and will start to have more and more effect on our Polish operation, where we produce a lot of goods for energy and clean tech.

That was a positive development in revenue and in profit for Poland. Then, German market remain challenged, and there it was a negative development, which explain this mild 3% organic growth for the overall region.

In a way, this was something that we have foreseen, and as you saw in the previous quarter, it was from restructuring costs that were already taken to prepare for that. I will say this was no surprise to us, and something that we are managing in as good way as it can be.

Then looking now at the acquisitive part, MB did start with Scanfil, as I said, it was almost a quarter, not fully, but almost a quarter that they contributed to Scanfil, and they reached a total of €21 million in revenue, which means that if we look at the comparable against what they reached last year in the period, it's a double-digit growth, and not with a one, but a bigger number than a one. It was a very strong start for MB Elettronica, solid level of margin that was in line with our expectation and what we have seen overall.

A first quarter that, if we compare to their performance previous first quarter, was extremely, extremely solid, and that was driven both by customer demand, but also very solid execution. All in all, I think that very exciting with Central Europe.

I think we have engine of growth both in Italy and in Poland that have contributed this quarter, but will continue to contribute even in a greater way as we move forward. Then last, but not least, Northern Europe had, I would say, a very solid performance.

Growth was in the range of 6% organically in the quarter, and the leverage was very positive since now we got the profit level of 6.5% comparable EBITA, which was 6.8%, sorry, comparable EBITA, which was a 1 percentage point improvement against last year. That was a very positive development.

A big part of our development is driven by our defense customers that are performing very well in the quarter and having a very positive outlook. That is supported by very solid execution.

I would say maybe Northern Europe growth was not the most exciting, but a very solid performance from that region, and we really appreciate to see the incremental development we see there. When we look now at our customer group, and now it's including the customer that have joined us after the acquisition both of MB and ADCO, we are now rebalancing our portfolio.

Our biggest customer is now just above the 10% of the total revenue, and our next top 10 customer are now 43% of the total, which means that with the two new acquisition, we have onboarded a few very valuable customers. Actually, that list of top 10 has obviously evolved in a different way.

Very nice to see that we are, in a way, spreading the risk, but also increasing the opportunity by an increased base of customer with those acquisitions. When it comes to the spread and the split per customer group, you can see that now defense and aerospace was almost reaching 10% in the quarter.

It will obviously pass the 10% when we have MB consolidating in a full quarter, and now starts to be very significant and growing at a very very high pace. Then Energy & Cleantech is also a customer group that is really taking is importance and now reaching 32% of our total revenue, which makes it very very important to us, and with a very good prospective of growth.

Then Medtech & Life Science, 18%, is also a very strong performance for that customer group, where, you will see later, we have high ambition and a very high level of traction currently. Finally, Industrial remain our biggest customer group, but only 41% after we have now extracted defense from that group.

Looking now at the different customer group, Aerospace & Defense was €21 million in the quarter, and it's driven, as I said, by two elements. Obviously, a very strong growth against the 9 million of '25, driven by two elements.

We have some revenue from MB, at least two months that are consolidated in those elements, but also a very strong growth of our existing customers. We are very active currently with the pipeline and potential deals.

It was nothing material that came into that quarters in terms of new deals, but obviously strong pipeline and strong level of activity and a very strong order book with long-term customers. For the one of you that have had the chance to be a bit exposed to MB, some of our customer there in the aerospace and satellite business have a very long-term outlook.

Obviously, those business are planned for years in advance. On Energy & Cleantech, we had a very solid quarter, €73 million against 62 last year for that segment, mainly driven by organic growth and our organic portfolio where we have a very strong penetration and a very strong development and partnership with our Energy & Cleantech customer.

You can see that also on the win deals, we were slightly below the record Q4, but kept above €20 million in acquired deals. This is very positive to us.

I think that we can see that the partnership we have established with some of those international leaders is paying forward, and they are also the one driving us to make those long-term investment that you have seen in our factories. Very pleased with the development of that segment, where we have built solid partnership, and I believe we contribute and enjoy contributing to developing the business of those partner.

The Industrial segment, as I mentioned before, is now corrected from the defense business. We had a solid development in revenue, €93 million against 82.

In order, the level of order was pretty much in line with what we have seen over the last year. There it's obviously a more difficult business to comment, it's many different type of businesses, and a business where we expect slightly lower growth, but we have a good holding of that business, and also good partnership and good development.

Then, last but not least, Medtech & Life Science that reached a record level of €42 million sales in the quarter. Obviously, also some contribution of some of our acquired entities that has some business in that field.

What is mainly pleasing to see in that business is the level of project won and deal won that was once again above €10 million, which is a new level for Scanfil that we have now reached the last three quarters. As I have mentioned before, the very interesting part of it is it's very long-term partnership and long-term business that take time to get up alive, but they are area where we bring added value and where we build added value.

Having this level of acquisition is good, knowing also that many of those come with new major leader in their field. Our portfolio is diversifying in terms of customers, and the number of deal is growing, it's showing a very good trend and very good development.

That was for me, Kai, if you want to continue.

Thank you, and good morning. I will dive a bit deeper in the financials, and here is the breakdown of the P&L changes year-on-year.

On the left side is '25, and on the right side '26. Like mentioned, the organic growth was 6.5%, strong growth organically.

Turnover coming from the acquisition was 14.1% more, €27 million in euro. When consolidating the local currency P&Ls to the group level, then we have some loss in translation, €3.2 million and 1.7% in exchange rate, which basically cannot do anything, this is just mathematics.

Also, the inventories were growing €2 million, in a way the total production volume was even a bit further higher. Cost, expenses, depreciations well in line with the volume, and then therefore we have a 6.8% of comparable EBITA in comparison to previous year 6.5%, and €3 million increase in the comparable EBITA level.

Here is the balance sheet. If put it on the nutshell, on the asset side, we have goodwill and increase of goodwill and customer relations, it's about €90 million.

We have higher working capital also following the acquisitions, €110 million, some impact organically, but mainly from the acquisitions. Then €10 million more fixed asset.

Totally, the balance sheet increases a bit over €200 million in comparison to the last year same time. On the liability side, we have €80 million more debt, €70 million in working capital in practice then like trade payables, and then we have €25 million more equity, and there is another €30 million liability related to this acquisition, MB acquisition specifically.

Cash flow was very close to zero, slightly negative in the quarter. The reason is that during the last two quarters, we have been growing roughly €20 million per quarter, then there is strong growth organically, and that's increasing also the working capital, €17 million, which is then bringing the cash flow negative.

The free cash flow after investment was then €88 million. This is including, of course, the acquisitions.

Net debt, in total, €130 million. Now the interest-bearing liabilities are more than €150 million in total.

Now the debt ratio is 1.57, totally in line with our long-term target and where we expected to be landing after this acquisitions. Liquidity is still strong.

We have signed and made another facility agreement during the Q1, and then we have €200 million of liquidity available. Key figures, expectedly equity ratio is now lower, 43%, still on a good level in comparison to previous year.

Then return on equity, we are now improving, but have not having the full effect in Q1, probably 12.2% in 1% better than a year ago. Gearing, naturally growing, now 39%.

Then earnings per share, €0.02 higher than in '25, €0.15. Still reminding, growing dividends since 2012, and expected to be decided and paid €0.25 from the last year quite soon.

Thank you. I will hand over back to Christophe.

Thank you, Kai. Getting back to the outlook, I hinted a little bit into that, we reiterate our guidance of €940 to €1 billion 60 revenue, and a comparable EBITA between 64 and 78.

I would say that two element drove us to continue with those guidance is first, we had a strong quarter both in the outcome and operational outcome of the quarter, which was absolutely in line with our expectation, and a very strong development of customer activities gives us a confidence in the future and in the development and in the target we have. All in all, I would say we are after first quarter even stronger into those guidance.

What was pleasing to see is a strong contribution from both acquisitions, ADCO and MB, having a good start in the first quarter, which is pleasing because it is something sizable for us. We also keep driving a good momentum organically, both in the number we deliver, but I can also see in the background all the customer activity and discussion we are having are heading in the good long-term direction.

Then we are supporting that with both our continuous improvement in our operation, but also in investing our existing manufacturing tools and space. All in all, I think that a positive quarter confirming the expectation and the ambition we had for Scanfil, and a good first milestone for 2026 year.

With that, I will hand over to you, Pasi, for Q&A.

Thank you. Thank you, Christophe.

Thank you, Kai. Now heading to the Q&A.

Starting with a question about the Aerospace & Defense. In Aerospace & Defense, new customer projects won were €0.9 million in Q1.

Do you expect new wins to fluctuate significantly between quarters in this business area?

Yeah. Absolutely.

I think that's a business group where we will see fluctuation in deals, because they're usually very long term. You get a new deal and a new win, and then you carry it for a very long time.

That's definitely something you are going to see. In the numbers you saw, it was no restatement of the won deals for the acquired entity previous years, but if we will look at that, we will see, okay, there is fluctuation, there is very massive deal, they come in, and then they carry on for years, actually.

Thank you. About working capital requirements, according to the report, organic revenue growth increased working capital requirements.

In some area, delivery chains may again create challenges like memories. Have you made any decisions during Q1 to increase working capital due to these potential challenges?

No, in the first quarter we don't have such decision. Basically, it was natural increase what we have in the working capital because of the volume, and mainly coming through from the accounts receivables side.

Thank you. Markus from DNB Carnegie, two questions: "You highlighted that MB was accretive to margins from the start.

Can you also comment on ADCO's margin level today and whether ADCO was positive or negative to the group margins in the quarter?"

Yeah. As you said, I think two questions, I guess the first one is also related to MB?

We'll answer. Absolutely MB had a strong development in the quarter with a, I would say, positive development in revenue and margin above what you could expect from the seasonality.

We were extremely pleased with that. I think I have done many acquisition in my life, but very few start like rockets, which MB did.

That was very pleasing, to say the least. When it comes to ADCO, there is a seasonality effect, and there is more fluctuation of demand.

If we look at the quarter, they had a lower level of revenue that we could expect on an average quarter year-on-year, but which was normal because of the seasonality and that is driving fluctuation in demand. Then they were in the range of the US profit, which is the level they should be in a first quarter.

I think there it was no surprise, and a solid start, but maybe less explosive than we had in MB.

Thank you. About the net working capital, this might go to Kai.

Second question relates to cash flow: "Can you please comment further on the net working capital in the quarter and the main drivers behind it?"

I think I mainly commented that already that when looking the cash flow then mainly driven by the organic growth, and like said that then there's growth of inventories and accounts payables and then the receivables, and they are more or less in line with the recent growth, and that is explaining it. Of course, overall, if looking the balance sheet, then there is much larger growth in the working capital, which is coming from the acquisition, but that's another thing.

The share impacting to the cash flow is coming from this growth.

Yes, thank you. Follow-up on that: "Was there any effect related to precautionary inventory build-up or other measures linked to the Middle East situation?"

Going back

to actually the previous question, but it was no.

No.

Antti from Inderes: "Are challenges driven by macro in Germany, or do you have some customer-specific or internal challenges as well?"

No, I think the German market is, in general, right now, more challenges in the sense that automotive industry is not in his best shape, which challenge the overall sector on the region. A slightly lower demand in that region, and probably a bit harder to have customer acquisition in that region and in others.

I think that's mainly the macro, and that we have seen and anticipated for long time, and that why we have acted upon it.

Yes, thank you. Antti continues: "Have you seen any changes in customer behavior or forecasts since the beginning of the war in Iran in March?"

I think that two things. We see very few changes related to that.

I think that it seems like whatever geopolitical happenings, our customer follow their plan and are quite solid. We have seen very few fluctuation.

There is one element that is building up now, but I don't think it's related to that, is the development of energy, cleantech sectors, which you could believe can be driven by that. We have a very good momentum in that one.

You could hope that it come from there. I actually think that it's a long-term trend that is just revitalized, and that's not got yet an impact of what's happening in the Middle East.

It would make sense that electrification accelerate again. I actually think that it was foreseen before that, and we saw that before the Middle East events.

The answer would be actually little impact to the development of our customer if you look at it from macro perspective.

Thank you. Now, Pasi from Nordea: "Have you seen any postponements or cancellations of orders in Q1 due to the overall economic uncertainty?"

As I said before, we have not seen any change. I think that, I would say, the delivery has been solid.

It has been a quarter, I would say, unfolding really much as expected from a customer standpoint, both in terms of keeping the demand as it was supposed to be, but also placing the demand forward as it should be. The market situation we face right now is very solid for us.

Customer changes are little, and the one we see are usually on the positive side.

Thank you. We still have time for questions, type in the chat box window if you have any questions.

Let's wait for a bit. If you do not have any questions to the chat, you can also approach us via email or give us a call.

Now handing back over to Christophe for the closing.

Thank you. The key takeaways for this quarter, I believe that we started with this quarter with a new chapter for Scanfil.

We are obviously much bigger company now that we were ending the years, both in terms of number of entities. We say two companies, but in reality it's six, because it was five in Italy.

Also we are a bigger company in terms of revenue, in terms of diversification of our portfolio with a strong position in aerospace and defense. From my perspective, it was very pleasing to see things in the quarter unfolding so well, I would say, with organic growth staying strong in the range of 6%, 7%, with acquired entity performing well and good interaction starting with those new customers, and all in all delivering a solid comparable EBITA of 6.8%, which was 0.3% above what we delivered last year, which was already a strong first quarter in terms of managing the profit.

Last, very strong level of activities in implementing new products. It's something that continue, and we need that if we want to continue to travel at this level of organic growth, but also a very strong level of discussion with our partner on how we help them to continue their journey, which is growth as well, and how we take part of it.

All in all, a solid development in the quarter that I would say, and I have said it before, and I will reiterate it again, makes us feel even more comfortable in the guidance we gave earlier in the year. With that, I want to thank you for listening to us, and wish you a good day.