Unidentified Speaker 1: Welcome to follow DT's fourth quarter results announcement. I'm pleased to be presenting to you.

Fourth quarter net sales reached €29.7 million, a -6%, EBITDA was 3.7 and EBITDA percentage 12.4%, some couple millions below what we or €1.5 million what we achieved last year. The biggest reason for the sales decline was the currency exchange rate, which represents about 5%, without that, the sales would be very much flattish.

We'll be explaining a bit closer what took place. If we look the applications point of view, the sales in Medical developed quite well, but then in Security, it declined.

Industrial sales was 7% negative, but very strong growth in flat panels TFT was even 50% for the quarter and actually for the full year 60% growth, and that was driven especially by battery inspection in APAC, and then line scan sales was declining. Medical sales, +19%, very strong growth driven by CT, and also the healthcare reform in China is in action, and that is then also driving the growth in China.

Security, -29%, looks a bit harsh big number, but actually this is very much an outcome of certain one-time events, and also we must remember that the fourth quarter in '24 was fairly high, exceptionally high in Security, as well as in '23, there's a little bit of this kind of seasonality explaining. The biggest single item for decline in Security was the European 100 ml effect that still was affecting fourth quarter.

Now it's past. Then also we had fairly sizable inventories with couple customers, and that's now also past.

Then also relating to Security, the market was very soft especially in China. By quarter, fourth quarter typically is the best, but this year then '25 was -6 6% to the previous, which then also results into the profitability, so that with smaller sales and especially the sales very much focusing on Medical, where the profitability is less, then as an outcome, we had 12.4% EBITDA.

On market's point of view, Americas was flattish, APAC a little bit decline, -4.4%, despite that the Medical was strong there, but then on the other side Security and Industrial were weaker, and then Europe down 12%, clearly driven by the Security point. A thing worth to note here is that we have quite precisely 2/3 of our sales are in APAC, and actually the economies in APAC grow actually double compared to what typically in the Western world, this is a good position to have.

Then from application point of view, Industrial down, Medical up 19, and Security down almost 30%. Here clearly you can see that the Medical is representing 50% of sales, and that's exceptional for if you look also in our history.

Full year, €101 million, 6% down, and 9.6% 9.6 million EBITDA and almost the same 9.5 5% in percentages. The net sales change, -6%.

Actually, the biggest impact there is the currency exchange rate that affects clearly more than half of this decline. Full year, Americas -22%, APAC flat, EMEA -16%, and both EMEA and Americas, by the way, are driven by the weak Security performance.

Looking then more closer into the finances, EBITDA 3.7 versus last year 5.2, 12.4 versus last year 16.3. We did not have any non-recurring items, this is clean from that point of view, and also want to highlight that we are actually recognizing all R&D as cost.

The full R&D spending, which clearly is an investment, but it's not capitalized, so as a cost was 2.8, and full year was 11.3, representing 11.2% of our sales. Cash flow was down quite sizably, and the reason there is that on purpose we have been increasing our inventories to be ready for supporting the growth in the challenging global markets where actually there are sudden shortages of materials, for example.

Investments were quite sort of reasonable, €900,000 for the quarter and €2.3 million for the full year, and then return on investments still quite okay, 9.2%, and the earnings per share 22 euro cents for the quarter. We just launched our DT 2030 strategy in November in our Capital Markets Day as a reminder, our target is to outgrow the market.

The market grows 3%, we aim to have 10% market, and providing higher value-added data-generating X-ray detectors through outstanding interface to our customers, outstanding usability and services to our customers. Markets are driven by aging population, security concerns, quality and efficiency, eco and circular economies, shortage of raw materials, and then overall machine learning, AI, and digitalization is driving the use of detectors.

You can learn much more what's going on through clever use of AI. Out of the markets, clearly biggest by application is Healthcare, 70%, and then Security and Industrial a bit over 10% of the markets.

By technology, DT is strongest in line scan and CT, which is the fast and very precise scanning. We are market leaders there.

Then the TFT panels, and that digital X-ray market and more static part, is representing 40%, which is the biggest, almost €1.5 billion out of the €3 billion estimated market for 2030. We have now, I think, a very good position.

Our business for the future will be more balanced because we have good products for all of these various technologies and applications. Strategy in a nutshell, we are building on top of the high-performing people through excellent customer interface, and the four cornerstones are the improvements in operations, R&D being faster, being more productive, increased productivity, going out and marketing, selling, building TFT panels not only in China, so far our growth clearly is out, but then also globally, adding value to our products, being active with customers, finding ways how we can also build up software capabilities with them.

All is typically built on top of our hardware, and then we are looking for the new technology like photon counting for the 2030 and beyond. As an example, we are looking back last year, what did we achieve, the big things.

I think in the middle there you see the heart, that's the India, we've actually had the inauguration of the India factory in December, and now we are ready to provide locally made products for India markets. We were awarded a very important recognition.

GE Healthcare is the number one in the healthcare industry, highly reputable, and we were selected out of more than 20,000 suppliers as the supplier of the year. GE, by the way, is spending about 10 billion into their sourcing, this is a sizable recognition.

Then we've yielded out a new CT detector, photon-counting CT detector data management, and then created and developed a new low-cost product, [Auva?] , for line scan applications.

Then for sustainability, we were awarded EcoVadis bronze with a score of 63, and by the way, only about 2% of the companies applying and being awarded this reach bronze or better, this is a very good position to start. Sales expectations now for the first quarter and first half, I think we are full of now energy and positively looking because we have a quite nice outlook for the first quarter.

We see that all our applications are growing, Industrial, Medical, Security. By the way, all our regions.

Then we are guiding officially a double-digit growth not only for the first quarter, but also for the first half of this year. Regarding the dividends, the board is proposing 30 euro cent dividend, which represents 68% of the net proceedings, and the financial targets remain the same, at least 10% growth and at least 15% or better EBITDA, and the dividend percentage is between 30 to 60 of net proceedings as a guidance.

Thank you. I'm very pleased to be answering to any questions you might have.

Hello. This is Niko Kangas from SEB.

Thank you for the presentation. I have a couple of questions and I'll start with a bit technical one.

So— Sir, the microphone is not working.

The microphone is not working, just a second. A note.

Can you hear me now?

Technical question. Technology not working.

Yeah. This is Niko Kangas from SEB.

I have couple of questions and starting with a technical one after the technical problem. You are guiding double-digit sales growth now in Q1, and the FX seems to be quite negative still in Q1 if we look at the current rates.

What kind of FX impact are you baking into your guidance there?

The FX is based on today's FX. Yes, that's true if we look the comparable last year quarter, I think for us probably we would have -5% just with the same amount of sale, so that has been taken in account.

The numbers we are reporting, we are saying that we are 10%, at least 10% higher first quarter.

All right. The—

Then comparable it would be 15 above if the effect would be 5.

Good. Thank you.

Then on the business areas or applications and Medical business, your sales grew quite nicely in Medical business in Q4, but was that driven by kind of a bigger deals, clients refilling their inventories, or kind of end markets improving? I guess that similar kind of a question, what are you expecting in your guidance for Q1/H1?

Then maybe to give bit more color on that as the big Western OEMs working in China still seem to be quite cautious on China sales in '26, could you give color on maybe your different view?

We have not seen any sort of, let's say, change that some customers would be buying to inventory or so on. The behavior has been they are selling about the same amount through.

For Medical, actually China is the most important market because it's the hub in the world. Typically, companies export about 50% of their volume that they make in China.

So 50% stays in the country, 50% goes out in average, there's a lot of export out of the markets. I think now after the new processes have been in place for some time, there are some more activities going on there.

Then we see growth in that market too, but also globally.

Okay. You've said earlier that now after the reform in China, basically the business there will be a bit more lumpy, or the sales may come in bigger chunks.

Is this a case of that kind of thing, or do you kind of see just the business going on?

That's very good question. Thanks.

I think at the beginning after the market start to open up after the reform, it probably was a bit more lumpier due to the fact that also companies and customers were more careful and so on. Now when it's been going sometime, it is a little bit sort of balancing and also the customers can count that they get business.

All right. Thanks.

Then one last from me and related to the Industrial business, where you showed nice growth in TFT business, but that also indicates that the legacy business was quite much down. Can you comment that, and what kind of expectations do you have for Q1/H1 for the legacy business in Industrial?

I think we don't separate that Industrial is Industrial, but out of the fourth quarter sales, yes, TFT was positive, industrial battery was driving clearly that growth. I think food scanning also was growing.

The basic industrial line scan was not growing, especially in China. The outlook for first quarter, I think overall in Industrial is very positive.

Even should be the legacy, let's see how it moves, but most important is that we will have growth for the industrial part.

Okay. That there isn't any bigger structural problem in Industrial legacy business?

No, it's just, like I I think Industrial business in and in in China is just super competed, it it's cutthroat competition, and it's very, everybody is fighting for very, even small deals.

All right, understand. That's all for me.

Thank you.

Joonas Ilvonen from Evli. If I can come back to this 15% underlying growth you said you see in H1, can you elaborate on the components in terms of volume and pricing, how it looks from those perspectives?

Also, if possible to elaborate also from the perspective of the product application areas. How are volumes developing on the one hand and how is the pricing?

I guess within Medical, for example, there's still probably some pricing headwinds.

You mean pricing from us to our customers or pricing for our materials?

Maybe both, basically, yeah. Basically, pricing from us.

Okay.

Just to be a bit more more specific, I I I think we must remember that the big currency exchange happened in March after Trump was in in and did his tariff things and so on. Actually, the currency, let's say, headwind or about 5% effect is only for first quarter.

Second quarter then, at least from today's point of view, the currencies are very much in line as they have been in before to comparable quarter. Then relating to I I I think we have, almost all our pricing is is sort of fixed for for this year, in a way, we know that.

Yes, there's, has been some challenging negotiations and so on, and those those, are in in in in we are counting those in our plans. Relating to materials and and the cost, I don't think we there has not been any big, sizable inflation type of effects and so on.

Also, we must remember that we have been able to reduce cost by bringing certain value-added to our own factory, like in Wuxi, and and that has helped us us to, to to reduce the the the costs.

To summarize, basically pricing relatively flat, it's mostly volume growth that you're expecting in Q1 and—

Yes, very much is volume growth. Yes, there are also some price reductions and so because of the competition what's going on, but volume is the key player there.

What do you think about the Security performance in Q4, because to me, it seems at least that maybe sales declined still perhaps faster than you might have expected? Can you say something more specifically about Security in Q1, what kind of recovery in revenue are you seeing?

Security in Q1 is very much driven by CT. That's good.

It was not driven by CT last year, I think on that way, we are on clear waters. The numbers look strange, I understand, but there are some one-time effects and so on, and we have not lost any sort of customer or these kind of things.

It's just sort of some delays and so on, some stocks that are affecting until it starts to pull and it sells through.

Right. Maybe still on Q4 earnings, arguably you might say that it was even relatively strong result considering the rather unfavorable product mix.

Are you happy with your gross margin still declined by some 350 basis points year-on-year because of this unfavorable product mix, but are you now happy with those margins and cost you saw in Q4—

I cannot be happy because we didn't deliver on numbers. Clearly we were behind in sales and profits.

Of course, there are reasons and explanations there and so on, but what I'm happy of last year '25, I think we were quite successful in building a good foundation how to step up. We launched 60 new products in TFTs, new products also in our sort of legacy business and so on, and we achieved certain things like the GE sort of award for supplier of the year and these kind of things.

Those clearly show that we are, as a team, we perform, we can deliver, and customers trust us, and we can move forward and build the growth.

All right. Thanks, that's all from me.

Hi, it's Patrick Campbell?] from Nordea.

I'm just going back to the inventories. You mentioned that you've increased inventories.

Could you please explain the reasoning behind this?

We practically two reasons. One is that we are having some change in some suppliers, that means that we have to sort of for the transition period, we must be sure that we have the materials until we have approvals and everything sort of clear.

Then the other side is that we are preparing also for the coming growth. We clearly see that, for example, the data centers, driven by AI, the data centers have really changed the, let's say, supply-demand picture in the world.

There's certain active components and semiconductors that were quite easy to be getting, those are now really, really hard. Luckily, we don't have memory chips in our products, which is probably one of the area that is really, really there are shortages.

We are preparing so that even if there's some headwind and some challenges on availability, that we still can support our customers and can have the materials and components to grow.

Just a follow-up on that topic. How well would you describe you're covered for the full year, and then what kind of costs are you expecting from these supplier changes?

The costs are in our plans. What we need to do is make sure that we can deliver on our target, which is minimum 10% growth, and that's something that we are preparing ourselves.

Thank you.

Yes, TFT growth, we were able to win two super important and big customers who are driving this growth, which also is then a clear sign that we are competent, competitive as a supplier meeting hard quality and also cost targets, and then this will be helping us to grow also in other areas for other customers. If you can do it in China, then also the markets in Europe and US are not that competitive.

Our products in defense sector are used in what we call industrial NDT, industrial non-destructive testing. There are customers out there making big systems who are then scanning and checking through engine blocks, cylinder blocks or aerospace engines or and then also military defense and so on.

There are possibilities to grow not only in Europe, but also as an example in US.

Gross margins, if we are talking of sort of sales, materials, and what's left, probably we will be seeing about similar performance than we had in '25. That's highly then dependent how will the product mix turn out.

Hello. This is Niko Kangas from SEB again.

I could have one additional question. You highlighted in your report that changes in your client portfolio affected your business in '25.

Are those impacts now over going into '26?

I think a little bit we were affected '25 profitability, like we had the end-of-life on the analog portfolio, and that's then behind. We don't, let's say, from today's point of view see any significant changes in that area other than that.

All right. Thanks.

Thank you. Are we done with the questions?

Thank you. I thank everybody and look forward to be delivering then on first quarter and first half with our team.

Thank you. Goodbye.