Good morning. My name is Tuomas Kahri, and I am the CEO of Boreo since beginning of April this year.

Welcome, and thank you for joining us today. Today, we will walk you through Boreo's first-quarter results of 2026, and we will put the performance into the context of a serial acquirer business model.

Q1 marks a strong start for the year, continuing the positive trajectory we've seen over the past six quarters. We delivered strong solid growth, we improved our profitability, we had a strong cash generation, and we strengthened our balance sheet.

With that, maybe it's a good time to introduce the the rest of the team. We are three persons from Boreo in this call this morning.

I'm joined today by by Rafael Osmanov, who is our Head of M&A and Financing, and our VP of Finance, Sami Hanerva. Rafael will will dive deeper into our financial financing situation and our M&A activities, and Sami will cover the business areas.

Sami also is the man with the with the historical background on on Boreo, since Rafael and myself still have a fairly short experience of of of Boreo. Before we jump into the into the numbers, just few words about my background and maybe some few first observations from Boreo.

I have worked for over 30 years in various businesses with the focus on on growth, strategy strategy development, M&A, and achieving high operational results. During the past 10 years, I've spent time as a CEO, as a partner at McKinsey & Company, and as an operating partner with a Finnish private equity buyout fund called Intera Partners.

The first weeks with Boreo have given me a confidence that Boreo's business model is sound. The company is in a very good shape to continue both organic and inorganic growth, and that is enabled by the efficient capital allocation practices that the company has in in place.

A very nice place to start calling the the leadership of the of the company. Then if we go and look at the quarter one, quarter one 2026 was very strong quarter operationally.

Our net sales increased by 16% versus the comparison period in in '25, and they amounted to €39.5 million. The organic growth was 9%.

This was the sixth consecutive quarter of organic growth. Operational EBIT increased by 28% and was €1.7 million, which corresponds to 4.3% margin.

The EBIT for the quarter was €0.9 million, which was a little bit below '25 comparison period, but it is worth mentioning that in the in the '25 period, we had a positive non-recurring items of €0.6 million. Our cash flow was €2.1 million, and the cash conversion was very strong at 116%.

Also, our balance sheet strengthened further. The net debt to operational EBITDA was 2.2x, which compares to 3.1 in the first quarter of of 2025.

Our return on capital employed was at 9.1%, and the return on trade net working return on trade working capital was 28%, which also increased from the from the previous previous year. Then maybe finally a little bit more on the order books.

The order book books still grew compared to quarter one 2025 and to quarter four compared to quarter four last year. The order growth was driven by by improving demand that we saw especially in our industrial and defense-related businesses.

We still see that the construction business remains quite subdued, but also there we see some cautious improvement happening. Then if we look at the the positive our how to continue the positive development this year, there are three key focus areas for the for the management.

The first one being accelerating M&A activities, and those will be now focusing 2026 into our our existing businesses. We are continuing to to strengthen our cluster thinking, meaning that companies operating in a similar industries would be kind of handled a little bit more like a like a cluster, and then we invest into the operating companies within those clusters that we feel are have the best opportunities to to meet our financial targets.

The second focus area is is is to review the role and the status of each operating company, and there we really want to make sure that we understand clearly where do we have the the largest potential for both organic and inorganic growth, and how do we then drive the capital allocation decisions that we make as a management. Thirdly, we continue to to strengthen our balance sheet to make sure that we can support the M&A and growth activities going forward.

A little bit more in a kind of concrete level, we see that in '26, the earnings improvement potential is supported by by kind of systematic development of organic growth, as well as our our development of the operating models. In order to to accelerate the organic growth, we will drive the cooperation within the kind of the clusters where the the companies operating with a similar industry will be sharing more and more best practices, especially in the in the in the customer interface.

Also for the operating model, the big item of course is the the five ERP system renewal projects we have ongoing. Out of those, the first one is now completed, and the four still ongoing projects are progressing according to the plan.

These projects will improve our efficiency and reduce fixed cost in the coming years, and the implementation costs for these ongoing ERP projects have been adjusted in our operational EBIT. Then if we look at the our our performance against the long-term strategic targets or target setting, the Q1 represents again a a a step, clear step forward or to the right direction according to to meet our our strategic targets.

Operational EBIT growth was 10%, and that was largely driven by the organic growth, once the M&A activity grows, this should impact also also the growth further. Also, capital efficiency is developing well; however, there we still are behind our strategic target.

Finally, deleveraging continues, with a senior debt reduced roughly by by €5 million year on year, and I will I will let Rafael in in a few minutes talk more about the the financing and our our our balance sheet. To continue with with some of the key KPIs, the first one being sales growth.

The sales grew by €5.5 million or 16% compared to Q1 2025. 9% of that came from from organic growth, reflecting the the improved market demand, and 7% is the impact of of acquisitions completed in in in '25.

The two acquisitions that were completed were the Spetsel Elektronik and Elfadistrelec operations, and together these two contributed roughly €2.5 million to our sales. On the business areas, Electronics overall level was was was stable, but there was a very good development of of of Milcon that serves defense-related related businesses.

Also in Technical Trade, we had a strong strong growth, and that was specially supported by machinery and Putzmeister businesses. Then if we go forward to the gross margins, the gross margin level remained stable at 29%, and that is a good achievement taking into account that the sales mix changed quite a lot, as you saw from the from the sales.

The lower margins of the of the heavy equipment sales were offset by other businesses, both in the in the Technical Trade as well as in in the Electronics business. Overall, we see that the sales margin development was was healthy during the period.

Then on cash flow, cash flow generation of course is a is a core pillar of the of the serial acquirer model, and we will continue to to focus very much on the on the working capital, as well as of course on the on the return to drive the capital efficiency. Our working capital decreased slightly at the end of quarter one, roughly by by €0.1 million, and the cash conversion on the rolling basis was 103%.

On the on the main measurement on the capital efficiency, return on trade working capital, we it was at that 28%, roughly stable compared to year on year. Again, as said, we will continue to focus on the working capital, but really we see that the the big improvement in this KPI will come from the from the improved profitability going forward.

I will now turn turn it over to Rafael to review our our financing status, and and then over to Sami for the business area updates.

Thank you, Tuomas, and hello from my part as well. At the end of Q1 '26, the company stood at a solid financial position.

We had a good level of liquidity available to us at €19 million, which was roughly €5 million more than year before. Our total financial facilities were roughly €74 million, of which we had used €57 million.

Breakdown of this is term loan facility is roughly €18 million, €19 million, and acquisition loan facility €12 million, of which we still have €4 million unused. Then we have our hybrid instruments and RCF facility, which is at the moment currently unused, we have a good capacity for, for example, small M&A.

Going to debt maturity structure, we amortize our senior loan at €5 million annually, and we still have €2.5 million to amortize during the rest of the year. In '27, we have a reset date for our hybrid bond, and in '28, our senior debt package expires.

Keeping that in mind, we have been mapping different financing alternatives with our priority to strengthen the balance sheet in order to support our M&A and organic growth activities. Our criteria for long-term ownership are unchanged.

We want to own asset-light industrial businesses with strong cash flow profiles. Currently, we are analyzing the current portfolio to identify organic and inorganic growth opportunities to drive our future capital allocation priorities.

One of the focus areas for this year is accelerating M&A activities, and we take a highly disciplined approach, currently focusing on target companies that expand our existing businesses. Currently, we see that the M&A market is favorable for us.

We have a good deal flow of potential targets, and we see that there are more sellers than buyers, and because of that, the valuation levels are reasonable. Thank you.

Over to Sami then.

Yes, then we jump into the business area highlights. First, for the Electronics business area, in overall, good quarter, first quarter of the year, improved margins and growth, Milcon especially driving the performance in the Electronics for the Q1.

Sales increased by 10%. It was mainly driven by the inorganic growth of YRS and the Elfadistrelec acquisition we made last year.

Operational EBIT increased to €1.3 million compared to €1.0 million Q1 '25. EBIT margin increased to 7.7% compared 6.4% at the comparison period.

Return on trade working capital on a rolling 12-month basis was on a 48% level, decreased compared to comparison period mainly due to the decrease in profits. As mentioned, we measure it on a rolling 12-month basis, and in the Q1 '25, we had a really strong Q4 '24 when our Electronics made €1.7 million operational EBIT, so that's impacting there.

On a company level, we would like to highlight Milcon with the continuing solid performance and with the strong earnings capability for the future. Related to Milcon, we would like to highlight that the company received so-called AQAP, Allied Quality Assurance Publications certificate, during the quarter, which is a NATO certificate.

The certificate opened doors for Milcon to participate in the NATO tenders, we see that as an interesting opportunity for the future growth. The short-term outlook for the business area is in overall stable.

We still see some uncertainties in the operating environment, so that hasn't changed compared to previous quarters. At the end of Q1, the order book decreased slightly compared to previous quarter end, to Q4 '24, but the order books are on a higher level compared to situation a year ago.

The order intake for the Q1 for Electronics was on a reasonable level, the reason for the decrease is mainly the deliveries maybe made during the quarter. Then we jump to the Technical Trade.

Strong quarter also for Technical Trade, strong growth and improved EBIT; however, the margins were impacted by the sales mix. In Technical Trade for Q1, the sales growth was 21%, from which roughly 15% was organic and 6% inorganic.

Operational EBIT increased to €1.0 million compared to €0.9 million at Q1 '25, and the EBIT margin decreased slightly, and it was mainly due to the sales mix, as mentioned. Return on trade working capital increased to 30%, and the increase was driven by the better profitability.

On a company level, we would like to highlight for the Q1 the performance of machinery and the Putzmeister businesses when comparing Q1 '26 to Q1 '25, and also that the companies serving the process, mining, and manufacturing industries performed well in the first quarter of the year. In Technical Trade, order books grew compared to Q1 '25 and also compared to the year-end situation, and here we still would like to highlight or mention that some large deliveries are expected to be delivered in the latter part of '26, in Q3 and in Q4.

The short-term outlook remains overall solid for the business area with some gradual improvements supported with the stronger order book. Yes, then back to Tuomas.

Yes, thank you, Sami, and to conclude our story from today, the Q1 demonstrates that Boreo delivers profitable growth, strong cash flow, and improving capital efficiency. With the disciplined ownership model and long-term perspective, Boreo is well positioned to grow and prosper.

We'd like to thank you for your attention, and happy to take any questions at this point.

We have received certain questions from the listeners. Let's start with Technical Trade question.

Technical Trade saw impressive growth of 21% in Q1, yet you state that order books are being more weighted towards the latter part of '26. Should we view this as a strong outlook for the rest of the year, or were the comparables especially easy in Q1?

I think this is maybe Sami's question.

Thank you. I think that the Q1 growth reflects the improved execution, as well as some support from the comparables.

The order book, particularly towards the latter part of the year, supports the continued development, but still, I would say that the market remains somewhat mixed, and we expect gradual rather than linear improvement for the Technical Trade business.

Going to the next question. You had a €2.5 million contribution from acquisitions in the quarter.

It was lower than I expected. Can you give some more details on that, especially regarding contribution from Elfadistrelec, as your original PM stated yearly sales of €15 million for that business?

Again, I give this to Sami.

Thank you. I would say that this contribution reflects maybe the timing and the ramp-up phase, which is still ongoing for the Elfadistrelec and the YRS business.

For the Q1, the YRS as a whole was a bit below for our expectations, but we expect that the contribution will increase gradually over the time.

Thank you, Sami. Then there's a question, how do you view the financial stability, especially as you have some hybrid debt that are not classified as debt in your reporting?

This is something I could take. What we see is that the company has had a good cash flow, and we expect to decrease our leverage during this year.

We have good liquidity position, in that sense, we view that we have a solid position, we have options, and we have full support from our financial partners. Then there are questions regarding Delfin, how it has developed.

I give this to Tuomas.

Okay. Delfin has gone through the development of the new platform, which has been more or less completed at this point.

Of course, that still impacts kind of the future outlook of the business, where we see the scientific business growing nicely and developing nicely, and at the same time, we are still looking at the medical business opportunities, especially in the US. All in all, that business still is developing nicely; however, the investment that needs to be made for continued growth is somewhat impacting the result.

Thank you, Tuomas. More company-specific questions: Has the YRS business developed according to management's expectations?

I give this to Tuomas again.

The YRS business has developed a little bit slower than what was expected. This is due to some let's say, kind of uptake by the customers who have transferred to the new business.

However, we still have a very positive feeling that these customers will return and the business will continue to grow as expected.

Thank you, Tuomas. One more operating company question: Had the SSN weaker than expected Q1, or can we assume that this development will continue?

Tuomas, please.

Yeah. SSN is more of a question of actually a kind of a delay of some of the deals that the company has made, we don't see kind of these being kind of a change in the trend of that business.

Thank you, Tuomas. Then there's still one question.

You talk about both accelerating M&A activities and strengthening the balance sheet as main focus area. Can you describe that dynamic a bit more?

Yes, I'm gonna take this one. As mentioned earlier, we are paying down our debt during this year, and we are exploring different financing alternatives by the reset date of hybrid bond.

How we see is that we have opportunity to make small add-on acquisitions at this stage, and when our balance sheet is a bit more stronger with deleveraging continuing, we can take on bigger and bigger targets. Also what we mean by accelerating M&A activities is that we see that we want to be disciplined and gather a deep enough pipeline of potential targets to be very selective.

There is obviously a certain lead time between accelerating and execution. I hope this opened this item a bit.

This were all the questions that we received so far.

At this point, we'd like to thank you, and Vantaa is logging out. Thank you very much, and looking forward to continuing the discussion.

Thank you.

Thank you.