Very good afternoon. Welcome to the Robit Q3 2026 results presentation.

I'm joined today by our group CFO, Ari Suokas, and we will go through our figures and numbers for the past quarter. All in all, we are happy to present numbers that really sort of promote and show that we were able to continue the growth on our net sales side.

We were able to gain double-digit growth on our net sales, reaching a positive €22.5 million net sales during the past quarter. Our EBIT was only €200,000.

Arto will give a more background information on the reasons behind that one. On a positive note, our orders grew by 13%, roughly 13%, into €22.2 million.

Our operating cash flow continued to be on the negative side, and we will come back to that one also later in the presentations. When we look at the first three quarters, we came out during the second quarter informing that we had been successful in winning multiple contracts around the world.

During the last quarter, we were able to start delivering those contracts, and that was naturally visible then in our top-line figures. All in all, when we look at the first three three quarters of the year, we're proud to say that we've really been able to get that turnaround in our net sales and are back on a growth track.

We've been able to acquire so far a positive 12.3% growth on our net sales, and when looking at the EBITDA level, we've been able to increase it from the last year's three quarters by close to 30%, reaching a €5 million EBITDA level. The operating cash flow has been negative through the year, and there are naturally multiple reasons behind that, and we'll give comments on that shortly.

If we look at the product groups where we operate, Top Hammer has always been really the prime driver of our revenue growth, and that has not changed. During the third quarter, Top Hammer performed really well, giving a massive increase of close to 36% from the previous quarters, last year's third quarter figures.

On the Geotechnical side, which is project-based business, our revenue decreased from the previous year's quarter, reaching €3.5 million. Like said, it is project-based business, which then means that in the figures where we operate, delivering a project or not delivering project has a significant impact on the revenue turn.

On the Down the Hole side, our revenue has increased from 2026 third quarter by roughly 16%, though the net increase in itself in euros is not that massive, but still it is a positive development that it has been a growth from the previous quarter. When we look at the regions, the positive momentum that we've had throughout the year in the Americas has continued, although it's fair to say that the growth figures that we are presenting currently for the third quarter also in Australia of close to 30% are naturally, from the percentage perspective, big increases.

It is a fundamental fact that a €3 million, or over €3 million growth in the Americas year-on-year is really a magnificent achievement. Of course, this is not purely based on project business, it's also based on the new contracts we've been acquired, on the changes we have done in the organization, and really have been able to get a really good drive and momentum in the Americas region.

When we look at the Asian region, that is, especially on the Asian side, it has been more stable. On the EMEA region, we've seen a decrease from last year's third quarter.

In absolute value, not a significant drop, but then again, a drop is always a drop, and of course, something that we really have to sort of work on to improve during the next quarters.

Thank you, Mikko. I will continue here with the financial figures.

Like Mikko highlighted, we had a double-digit growth in net sales. Our net sales was €22.5 million, and during the Q3, we saw a ramp-up of the mining contracts that we announced during the Q2.

As you might remember, those mining contracts were in North America, South Africa, and Australia. The ramp-up has been impacting the net sales, but also the following figures that which come back to later on.

EBITDA percentage was 4.2%, EBIT percentage 0.7%, and result of the period €0.3 million. When it comes to the profitability, we saw a significant impact from the currencies, and especially from South Korean won.

A second reason is the impact of the tungsten prices that we utilize in our carbide bits. Now the tungsten has had its peak in the springtime, and now it has stabilized, but the level it has stabilized is four to five times higher than what we saw, for example, last year in a similar time period.

Moving on, our inventories grew significantly due to the ramp-up of our mining contracts and the tungsten prices. Our net working capital was €50.8 million.

Our inventories were €49 million, which were compared to last year €13 million up. Receivables, €21.8 million; payables, €20.1 million; and net working capital to last 12 months as a percentage, 59%.

The ramp-up of mining contracts was majority done during the Q3, and we expect the inventories to be decreasing significantly during the Q4 and Q1. We will still have an impact of the tungsten price still during the Q4, especially at the beginning of Q4, but that should fade away if we continue having a stable but high tungsten price environment going forward.

Cash flow before net working capital, €1.8 million, and then again, our operating cash flow was negative, -€2.7 million. Investing cash flow, €0.0 million, and this is according to our investment plans.

We have done the investments back in the days, and there is no sudden investment needs in near future. Financing cash flow, €0.2 million.

The operating cash flow was very much impacted by the inventories, and we expect the operating cash flow also to be on a positive side going forward as we start to move on a more stable environment. However, having that said, we still continue to work with trials on the mining sites and ensure that we aim to capture more sales going forward from the minings with these multi-year contracts.

Our financial position: total assets, €94.6 million; total equity, €47.5 million; cash and equivalents, €4.9 million, impacted very much the tungsten and the inventories, like highlighted; and interest-bearing debt, €27.1 million. Our net debt was end of Q3 €22.2 million.

Net debt/EBITDA for the last 12 months, we have the covenant test point twice a year, and that's end of June and end of December. Previously, we had 2.64 at the end of June, our covenant net debt/EBITDA.

Our equity ratio is 49.9%, that has remained on a same level pretty much. Loans outstanding, €24.2 million end of Q3.

Semi-annual loan repayments we have twice a year at end of June and at end of December, both €1.5 million. We have also €10 million interest rate swap protecting us from the interest rate volatility.

If we then go into the outlook and continue on the focus for the remaining part of the year. Nothing has changed from the last time we went through the numbers.

I think the actions we've taken in the background, the momentum we've been able to gain with our organization is something that we just have to continue also pushing during the coming months and coming quarters. Like has been said, and like is the case, the key driver for our growth in the future is through the distributorship.

We need to be able to penetrate to the markets through the distributors and give that support that they need in order to be able to gain that momentum in multiple markets, as it is virtually impossible for the size of our company to penetrate into all markets with direct sales. That's the reason why the sales channel strategy is a key driver for our growth in the future.

The other thing is that, of course, we need to really be strong in those markets where we act. We need to be sure that we have the right products for the market.

We focus on testing, trialing, proving the capability of our products, and through that are able to convince the end users to convert the existing tools and consumables into Robit's products. We've been able to show during this year that that work pays out, but it's, of course, something that as a sort of minor, small player in the market in a massive market, it's something that we have to prove and continuously sort of work on to make sure that we are able to win that market share and gain, through that, the growth of Robit to continue also in the coming quarters and coming years.

Then, on the other side of the business is, of course, how to mitigate those challenges that the market brings in. Over the last years, there've been multiple disturbances in the market which have affected the businesses, and during the last 12 months, of course, we've been heavily impacted by the challenges that the tungsten has had on the market circumstances.

We hope that the worst is behind in terms of the volatility, but, of course, the price level itself remains really high compared to the past, but that's the past. For us, what it means is that we have to find ways how we mitigate those risks which are coming related to raw material, related to tariffs, or whether it's logistical or any other type of challenges that the market might bring into our environment.

The key driver to be successful in the business is that we have to be strong in that sales strategy that we have. On a daily basis, we have to be able to prove our products to the end users and through that get the conversion from the existing supply to Robit and win the market that way.

We've seen it works, we just have to continue that same work. Looking at the last part of the year, looking at the guidance, looking at the financial targets, nothing has changed.

We still expect the net sales to increase, and we still expect the comparable EBIT in euros to improve from last year.

Thank you, Mikko. Now moving on to questions and answers, and we have several questions here.

I will read these questions aloud, and then let's pick up which one we'll answer. First one coming from Aapeli from Inderes: How has the sales pipeline developed in the recent months?

The sales pipeline itself has developed in the larger picture it has developed pretty positively. We have continuously possibilities to prove our product in the market.

We get those possibilities to penetrate to the market and give really proof that our product works. The conversion then from the trial to actually winning business is, of course, then another step that needs to be done.

That continuous work in the background regarding the proving of our products, working together with our distributors to bring that added value into the market, of course, is something that has to continue and will continue.

Thank you, Mikko. Second question: EBIT was clearly burdened by exchange rates.

Could you walk us through again how those impact P&L, and is there anything you could try to do to mitigate those swings going forward as they are quite large compared to your figures? I can pick this one up.

Traditionally the USD has had its biggest impact to Robit, and then again these are usually coming from payables and receivables. Robit has traditionally utilized natural hedging here, which has been very much our way to mitigate the impact coming from exchange rates.

Now obviously tungsten has made this equation a bit more challenging. Now when it comes to the Q3, we saw a sudden, very sudden change in South Korean won, and that had also a clear impact during the Q3.

Then the next question: You expect construction industry to develop positively for the remainder of '26. At the same time, you mentioned of increased competition in geotechnical.

Could you elaborate a bit how you see the construction market for late '26 and '27?

When we talk about the development of the market, it of course looks at the broader picture of how we see the offers coming out of the market. When we look at the Nordic market on the construction sector, I think it's sort of fair to say that compared to the previous years in business, this is not a bad time of business environment.

It has been worse. We see that there are multiple large-scale projects in the market.

Some of them we have lost. In the history, we've also proven that we've been able to win large projects, and there are still tenders ongoing in the market for this large-scale project.

In that sense, still it would be difficult to sort of justify and say why the market condition or the market environment on the construction sector would not be, from the business perspective, a positive. At the same time, like said, when you are in a project business, you either win or you lose.

When you lose the business, it's gone. You have to then try to capture the next project, and that, of course, then means that it is a sort of pulsy type of business environment where you operate by winning and losing contracts.

Thank you, Mikko. Also, to building up on that, in addition to last question: How has the activity regarding data centers developed recently, and what is the outlook in the Nordics?

At least when looking at the general news which we can see here in Finland, the data center discussion seems to be really on the top of the news and the agenda. Of course, that's also visible in our business environment.

Now the question then is what is the foundation type in each data center? Are they sort of greenfield investments which are coming in or not?

Multiple things affect then the final sort of outcome of whether it is a potential project for us or not. It's clear that there are also projects in that data center market which are attractive from our business perspective.

Thank you, Mikko. Next question: How has the situation regarding tungsten price evolved from your perspective?

Any indication how you see gross margin going forward? I can pick this one up.

The tungsten price has stabilized despite the fact that it has stabilized clearly higher level what it was one year ago. Regarding the gross margins, we expect the gross margins to remain on a similar, all slightly better level on Q4 due to the reason that there is a delay from the peak prices, which we will have an impact still early part of the Q4 in our operations.

Then the next question: Is the worst behind related to networking capital, and should we expect positive cash flow from the last quarter? In the past quarter, the largest delta came from decrease in accounts payable.

Was it just timing or something more lasting effect?

If I say a few words, and then you can back me up on the latter part. I think it's facts is that we can't run our operations and our business by having a massively negative net working capital and cash flow.

I think, from that perspective, the only right answer is that it has to be better. Then when we look at the facts and when we look what the actual development is, it is better than what we have seen in the past.

It's a fact that the ramp-up of the new contracts which we have had have had an impact on our inventories, as well as, like Arto said, the tungsten has naturally had a big impact also on the development of our inventory values.

Very well put. I have no addition to this one.

Okay. [laughs] Next question coming from Heikki: Net debt/EBITDA is a lot higher now compared to the end of June.

How confident are you that you will meet the covenant at the end of the year taking into consideration the low profitability and poor cash flow? I can pick this one up.

Thank you, Heikki, very good question. If we would continue with the same high inventory levels, we would have an issue with the net debt covenant, but like Mikko highlighted in the previous answer, we expect the cash flow to improve and inventory levels go down.

The ramp-up of the mining contracts has proceeded very well. The next question coming from Sebastian: How sustainable is the growth in the Americas?

Nearly all of the Q3 revenue growth came from that region. How much of it was driven by the small number of mining contracts, and what margins are being achieved on those deliveries?

I have to say that that that of course the quarters if we would sort of look into into the differences of the Americas over the over the past three quarters, of course there's been substantial sort of difference of the composition of where the where the revenue has come from. A fact is that that the the long-term contracts that we've been able to gain gain globally have also had a positive impact on our on our North American market and our South American market, which then from that perspective it's sort of quite confident to say that that the level where we are at the moment is something of course that we we aim to sort of even increase in the further in the in the coming quarters.

That of course requires us also also to be successful in the in the project business. The fundamen there is is on a on a solid base.

Thank you, Mikko. That was the last question in our Q&A.

Big thank you, everybody on the line, for participating to our Q3 result webcast.

Thank you.