Good morning, and welcome to the Lifco Q2 presentation. We can start as always by going into page number 2 in our investor presentation.

If we look at the second quarter, we are presenting a solid quarter overall with a sales growth of 11%. In this second quarter, we had organic growth of around 5%, acquisition contributed with around 7%, and we had a slight negative minor effect from currencies.

If we go further down, we grew the EBITA with 14%, and obviously margin increased then from 22.5% in last year's quarter to 23.1%, which is a combination of organic development and also some effect of higher-margin acquisitions coming into the group. Also the profit before tax, net profit, grew healthy with 18%, operating cash flow with 14%, and earnings per share also grew with 18%.

If we look at the first six-month period, after a little bit weaker start to the year, we grow in the first six months now with a stronger second quarter with 7% EBITA in sales, EBITA grow with 10%. I can also go back and just mention the 7% sales growth in the first six months is also a three it's a 3% organic development and 7% from acquisition and obviously a higher negative impact of 3% in the first six months.

For the six months, we grow profit before tax and net profit with around 13%. With that, we can go into page number 3, the following slide, and look into the different business areas.

Just to remind everyone, this is now the first quarter where we have splitted out two business areas, we have Environmental Technology and Transportation Products, which have been previously subdivisions under Systems Solutions. They are now sort of separated out, and the Systems Solutions that we refer to in this page is now the remaining parts of the previous Systems Solutions.

Going back to the first area, Dental, we are reporting also here solid numbers, growing in the second quarter with 5% and EBITA growing with 10%, obviously higher margin here, which is a combination of higher-margin acquisitions coming into play and also some continued effect of positive product mix that we saw also in the first quarter. Positive product mix in this area typically means that our own-manufactured or own products are gradually taking a bigger share of the dental business area.

Going back 15 years ago, we were only a distribution business. We still have those companies in the group, but we have gradually, slowly over the last 15 years, step by step, went more into own proprietary products.

If we go to the second area, Demolition & Tools, I would say the second quarter was overall quite stable, sales grow with 2% and profit with 3%, stable margins here. If we take the first six months figures in Demolition & Tools, after the first quarter, we had for that period a negative mix effect, which we also comment in our report, that demolition robots had a more difficult market conditions, especially in the first quarter, which have an impact on our margins, slightly lower margins for the first six months in Demolition & Tools.

Overall, the second quarter was quite stable and in line with previous year. If we then go into Environmental Technology, we have quite good organic growth leading to improved net sales of 10% in the second quarter.

The growth also translate into operational leverage and higher margins, we grew the EBITA with 17% in Environmental Technology. In Transportation Products, the next area, we have a combination of acquisitions that are contributing and also strong organic growth in the second quarter, we grow sales with 22% and profits or EBITA, in this case, with 26%, also with higher margins.

I'd like to make a general comment when it comes to many of our industrial companies. They had in 2025, it was probably the most difficult years for the industrial side of Lifco at least since the IPO in 2014, and this first half year has been a little bit of a comeback situation, more to normality in 2026.

It doesn't mean that everything is perfect, but the suffering we had in 2025 is at least now a bit better numbers and better situation for many of the companies in 2026. If we go to the last area, the Systems Solutions, which is now remaining three divisions, it's our Contract Manufacturing, our Infrastructure Products, and our Special Products.

Here, we had in the second quarter also a strong growth of 19%, also growing profit more, 23% growth in EBITA, which is a combination of acquisitions and also organic growth in the segment. Overall, I would say in most areas quite stable and good development.

We can then go into page number 4, which is the following slide. That's just a slide that we take very seriously because it's measuring the most important thing, our growth in cash flow per share.

Once again, the way we measure cash flow per share in this is the cash flow after capex and taxes and interest and everything. The only thing that is not included is dividend to shareholders and payments for acquisitions, it's the pure cash flow of the operations in our view.

Since the IPO in 2014, we have grown the cash flow per share with around 20% CAGR, also improving slightly in this year. Of course, cash flow can vary quite heavily between quarters, and you have to look at this in a very long-term perspective.

We can go in then to page number 5 and look a little bit more into our financial position. We have a stable situation.

We actually have a lower net debt/EBITDA of 1.8 times EBITDA. It was 1.9 a year ago.

That's the net debt including all the option debt and also the leasing liabilities. If you look at the pure interest-bearing net debt/EBITDA, it's also down from 1.3 last year to 1.2 this year.

This, as I normally say, this also leads to plenty of room for further acquisitions, and we are, as always, continue to increase our capacity, our way of finding great companies in many different geographies and different subsectors, and that work is continuing step by step. However, as I always say, the timing and how and when an acquisition materialize can vary and will vary within quarters and even six-month period.

We continue and have many interesting discussions as always ongoing, and the timing is always difficult to predict, as we are extremely focused on buying really good companies for reasonable valuations. With that, we can move a bit further down to page number 13, which is a little bit lifting the high-level picture of Lifco again.

I just want to remind everyone how we work and also especially give a huge credit to the entire Lifco team and all the great people that are working around Lifco. This is a slide that we've had for many years describing how we work, and before we even get to this page, everything starts with selecting highly differentiated companies to acquire that have a sustainable business model and very interesting subsectors that we believe can be interesting to develop over long periods of time in the future.

Then the second point is that we have a very good team of senior, experienced former or current managing directors in our subsidiaries that gradually take the coordination role and the cultural leadership role in all our different subsidiaries that we have. The job of these people is the most important job is to recruit and coach new MDs into each and every subsidiary, we have a potential for very good growth of these highly differentiated companies.

Then obviously we come into this slide. Then number one is that we have to have very motivated managers, and we work very hard to ensure we have that.

Once we have them and the coaching has taken place, we let great people have a lot of responsibility in different subsidiaries. We've seen over now several decades that that can lead to very good results, both in terms of growth and margins.

The second point here is extremely important for us. As I mentioned, we focus on highly differentiated companies, and we try to make them even more differentiated over time.

We focus on customers and product areas where there is a potential for sustainable profit growth, and we also are willing to sacrifice situations where there's more competition or where we cannot be as special as we want to be, and there we sometimes shrink out of these segments and continue focusing on the areas where we can make the biggest difference. I'd like to emphasize how important this is.

In a decentralized model like Lifco, an industrial conglomerate like us, it's very, very important that we focus on areas where we can make a huge difference and not go into segments where volume is the only way to make margin. That's very important for us.

Then we have a situation where we can have this decentralized models and really work efficiently and have very simple, efficient, and entrepreneurial companies. We try to have in each and every company a very strong focus on sales, on product development, and assembly.

The people that are doing this job should be the shining stars in our model and not have a borkers level in between. We try to outsource as much as we possibly can, which leads to an asset-light business group.

Most of the companies we acquire, they are already outsourced from day one. If they have some insourcing, we try to over decades, step by step, make them more efficient.

The focus that that creates is very important because you can spend more time in the company developing new products that are better and more value for customers, and you can also think more about how to do global sales expansion of the products that you have developed instead of focusing too much on what machinery that is going to be installed in the production. Then we have a very strong focus on cash flow.

We have different measures to implement that and also incentives in the system for that. Maybe the last point, the most important, we are doing this as a multi-decade project, even though we focus very much on the profits every month, we also invest time step by step in activities to create long-term growth in all our companies.

With that, I would like to open up for any questions. Thank you very much.

Hi, good morning, Per. Good morning, Therése.

Thanks for taking my question. Maybe three from my end.

Firstly, on Systems Solutions, at least based on how it was previously reported, growth was quite solid across the three segments. Do you mind just sort of giving a bit more detail on what's driving that?

Maybe what's driving that in Environmental Technology and under the various subsegments? Secondly, on Demolition & Tools, sort of organic growth seems to be sort of low single digit.

Could you kind of go through how that trend versus expectations and sort of forward-looking outlook for the rest of the year? Then just lastly, on mix, margins seems to positively surprise.

Could you just go through Dental that's had sort of positive mix for a few quarters now, anything surprising there? Also maybe the same question for Demolition & Tools, just because again mix is a headwind to margin, maybe any thoughts on that?

Thank you very much.

Thank you. There were quite a number of questions, and I'm not sure I really got all of them, but I'll try my best.

I think the first question was regarding Systems Solutions, and I think for this quarter, it was pretty solid across the board. Maybe I could mention, I don't know if you specifically asked for it, there is a reason we didn't mention for the first time in quite a while anything about Contract Manufacturing because we had quite stable development over there.

In this specific quarter, when it comes to Contract Manufacturing, we had actually quite good growth, quite stable development in the areas that had strong growth since now almost two years. That was more of a normal quarter, but other areas had quite good growth in this quarter.

Just to remind everyone, this can vary between quarters depending on how deliveries play out and so forth, but in this quarter, it was pretty good across the board. The question around Demolition & Tools, I think I can only repeat what we said in Q2.

It's been overall, the Demolition & Tools area peaked around '23 level and then had a very difficult '24. We saw somewhat of a comeback in '25, and then we had maybe a bit surprisingly to many observers a bit weaker start in Q1 2026.

In this quarter, I would say overall stable. Given the uncertainty in the global economy and especially the areas where we have more capex-related products, there's still a lot of uncertainty around those areas.

The machinery sales, for example, although this quarter was quite stable, it's still very difficult to predict what will happen there going forward. Then the last question was regarding mix effect if we go specifically into Dental.

I think in this first six months, we have two things that come into play at the same time. We have done some super niche acquisitions in the recent 12 months that increase our margins.

Then we see the general trend that we had for some time that we have a little bit better development in our own proprietary products. On top of that, maybe we haven't had any sort of negative surprises in the last six months that also helps the margin, I think these three things plays together.

I guess the mix effect was also referring to Demolition & Tools, and I can only repeat, we have slightly higher margin in our machinery part if you compare to our attachment side. The attachment side has been more stable and developing a little bit more positively last six months, and therefore we have over the first six-month period a little bit of a negative mix effect where we have slightly slower development in our higher-margin parts.

In the second quarter, it was more stable, but for the first six-month period it was like this. I don't know if I answered all the questions there, but maybe if you have any follow-up, please feel free to.

You largely did. Maybe just one follow-up on Transport Products.

Growth there was 22%. I think you've done some M&A in that segment in previous quarters, but sort of what's driving quite strong organic growth there?

I would say that last year, I had a general comment here early on that 2025 was the most difficult years in more than a decade for our industrial companies, including Transportation Products. This year, we felt that the market were a little bit more, I wouldn't say maybe fully back to normal, but at least more friendly to us.

In general, we feel that things are coming back across the board in this year. Keep in mind that last year was very, very difficult.

Just to be very clear, the reason things looked on the top line maybe not as bad last year as it felt was that we had this extra growth from Contract Manufacturing throughout most part of 2025 that made the numbers look a bit strange. Under the hood, there was a lot of difficult situations in 2025 in many of our industrial-exposed companies.

This first six months has been a bit more friendly to us.

Great. Thanks very much.

Thank you.

Thank you. Good morning.

Follow-up there on contract just to understand if there's anything left, to say, of those one or fewer larger contracts, for lack of better words, that was really supportive. Have they now run through their course, and now it's just another kind of leg up in general product deliveries and so on?

I'm just trying to think about volatility and comparables.

I wouldn't really describe it like that. I think what happened, it started, I think, about two years ago, the growth in Contract Manufacturing that was very high for a while.

Now it's sort of stabilized on a maybe not at the peak level that we saw in some, I can't remember exactly, it was 9 or 12 months ago, but it's more stabilizing on higher level compared to how it was two years ago. Specifically in this quarter, as I mentioned before, we saw quite strong growth in many other areas in Contract Manufacturing and more stable development compared to previous year in the areas that took off two years ago.

It was a bit different type of quarter,

you

have to say. Yeah.

Right now, you can say it's very difficult to predict, but right now, we sort of grinding along in the areas that took off two years ago, and we'll see how that develops. Other areas are now, at least in this quarter, had a strong momentum, and we'll see how the future develops.

All right. My second question, correct me if I'm wrong here, but within Environmental, would it be fair to assume that the marine side of things is doing well?

Then the follow-up would be, I know that you are very agnostic in terms of M&A, but kind of just your view when you assess the marine market for M&A opportunities and, yeah.

The short answer is that without going into too much specifics, it was in general a solid quarter for the environmental areas, and they consist of quite different type of companies, but we saw quite strong growth, including the marine market. Just to keep in mind, the business we have in marine is a very much an aftermarket-driven business, it's not an area that, even though top line can vary, but from a profit development, it's very much driven by stable and continuous growth in aftermarket.

It's not coming only from one area in Environmental Products development. It's a more general increase in this quarter.

All right. Understood.

Thank you. That's all from my side.

Yep. Thank you very much.

Yes. Good morning, Per.

Just two follow-ups from my side. Maybe starting a bit on the comment you had about industrial part of your business that just a little bit better first half here.

I know a lot has happened throughout the quarter with geopolitical uncertainty in the beginning of the quarter. Did you see an impact from that increased level of uncertainty in April, and then later a catch-up in June, or was it sort of even performance throughout the full quarter and quite limited impact from, yeah, what's happening in the world?

Thank you.

Difficult question to answer. I think you're right, there's a lot of geopolitical insecurity or instability, but we sort of got used to that now the last, I would say four years.

Maybe I should say this way, this first six months has been a bit strange. I don't know if you've seen that in other companies, but I think the difference between months has been the biggest that I've ever seen in the last 20 years.

I cannot really make a good conclusion of that. There's been intra-month, but it's not so clear that it has to do with geopolitical wars, etc., etc.

I have a hard time making good conclusions. Probably you guys who are following many companies can help me better interpret what has happened in the first six months.

Just to give a little bit of flavor, I think it also has to do with the holiday shifts in Central Europe and so forth. For example, this quarter, April was okay, May was very weak, and June was good.

We saw a similar effect actually in the first quarter, which it's a bit strange because you would argue that March should in theory have been a weak quarter given what happened in the Middle East in the beginning or late February, beginning of March. I have a hard time making very good conclusions around this, but I can only mention that is how it's been looking for us around this.

Yeah. Fully understood.

Maybe on the organic growth in the quarter of 5%, a bit of a catch-up from Q1, and I know there's a little bit of different comps in Q1 and Q2, but still in terms of pricing, are you pushing more price increases now when you have a little bit higher transportation cost and fueling prices, or is it sort of a good mix between volume and pricing in this quarter?

I think if you're referring to extraordinary price increases due to short-term price hikes in the value chain, that takes normally a little bit of time in some companies. In general, we are, every year, no matter how the market condition is, we are inspiring and we are ensuring that our companies are gradually adapting their pricing and developing better products with higher value for customers step by step.

It's a constant work in Lifco. I think the short-term impact takes some time, but some companies can be also, of course, very quick depending on the situation, how you work with order books and deliveries, etc.

I think in general, so far, it's more of a general grind that took place in this year. If you compare to how things were when the inflation really peaked some years ago, that it was much more dramatic.

Now, of course, we are also implementing some extraordinary price increases in specific sectors where raw material has a more clear relevance for us. Other than that, we normally do our normal price adjustments as we go along.

Very clear. Maybe just finishing on acquisitions, you've done four so far this year.

Pipeline, is that at normal levels, and you have a lot to work on going into the second half of the year, or yeah, can you just give a few words on that as well? Thank you.

Yes, we have a lot of things to work on for the second half of the year. No, we are very quality oriented, and we try to stay very disciplined, and sometimes you get a release, and everything comes into play, and maybe you make five deals in one month, and then suddenly you make only four, five deals in six months, so that can vary a lot.

If you go under the hood of what's going on, the activity level continues to be extremely high. Of course, higher than ever as it grows every year, we have more discussions than we ever had, but that's normal for us.

We grow a little bit every year in how we look at things. All the stars has to be aligned to make a deal happen.

We have to continue to work very hard, and hopefully we get some more closings and transactions in the second half, but very difficult to predict. We should not predict that.

I think it's very dangerous to put targets, or we should always be willing to walk away if we don't feel comfortable for the consequences, because when we buy a company, we're going to keep it forever, and it's a big obligation from our side. The short answer is yes, we are very active in looking for new opportunities.

Fully understood. I think that was all from my side.

Thank you very much, Per.

Thank you.

good morning, Per. It's Gustav here from Nordea.

I thought maybe just to come back here to the Contract Manufacturing part of the business, just wondering if you are experiencing any sort of worsening component shortage related to the business, particularly I guess related to electronics parts or the EMS business, if you can say anything regarding that, and if you have seen any preordering in the quarter as well?

I think we quite into details here, but yes, I think there is a component difficulties. We're quite used to that now in this recent history, we had situations like this coming quite frequently.

Yes, that is the situation. We're handling that quite well, but in some areas, we would like of course to have quicker deliveries and more supply.

Overall, it's not a major problem on the Lifco group level like this. In specific situations, yes, that can be a problem.

Okay. Perfect.

That's clear. Then just to come back a bit to Demolition & Tools, it sounds like overall, H1 was a bit weaker, particularly I guess Q1.

If you just look at the demolition robots, are you seeing any trend shift in that market? Maybe it sounds a bit better in Q2.

Has it sort of increased gradually during the quarter or rather stable throughout?

Yeah. I guess we can say first quarter was tough, and it was a bit better in second quarter.

I think that's the short answer. We're quite far away from a good momentum, especially when it comes to more construction-related use of the machinery.

If you compare to how things were three years ago, we're quite far off from that level still. That doesn't mean that we think that will come in next quarter or in even the next six months, we take as always a very conservative approach on the future.

Long term, we hope that one day, things will be very good for this segment as well. We just don't know when.

That's fair. Just finally on the Environmental Technology, maybe you said this before or sorry for that, but just on the margin side, is there anything that is pushing margins up here?

I think it's quite impressive, or should we assume that this is a good reference point also going forward?

I think many of these companies, we have high-margin companies with high margin on product sales and also some of them in aftermarket sales, but when you get organic decline, it's very difficult to protect margins. Vice versa, when you get some positive organic development, it's quite easy to have an operational leverage normally.

I think that's the simple explanation that we have organizations with product developers and sales force, etc., etc. When we have a better leverage on those organizations, we tend to get better margins.

That's what we saw in this quarter.

That's very clear. Thank you very much for taking my questions.

Thank you.

Okay. I'd like to thank everyone for dialing in and also for the good questions.

We look forward to continue developing Lifco and see all of you in the next quarter report in October. Thank you very much.