Hello, and welcome to the presentation of Mycronic's Q3 report. My name is Sven Chetkovich, I'm the Director Investor Relations at Mycronic, and with me today, I have Mycronic's CEO Anders Lindqvist and the CFO Pierre Brorsson, who will be presenting today.

With that, I hand over to Anders. Please go ahead and present Mycronic's Q3 report.

Thank you, Sven, and welcome, everyone, to this session. Today, we will, of course, talk about the quarter three in short, and then go a little bit deeper within the different divisions that we have.

Pierre will explain everything about financials, and we will talk shortly about sustainability. As usual, we will end this session with the question and answer section.

In the material that is to be found on the website, there is also an appendix where we have collected all the market reports in an update. Start to talk about the quarter in general.

We had a very solid quarter, and it's on all counts, which meaning that all the divisions contributed very nicely to the result. We saw an order intake that increased by 10%, and this is to be compared to a very strong quarter in 2025.

Almost 2.7 billion in order intake. The greatest contribution came from High Volume division and Global Technologies division.

Sales also increased very nicely, 38%, almost up to 2.4 billion, close to. The primarily reason for that is the growth that we have within Global Technologies.

You can also see that all divisions actually had double-digit growth in the quarter. Very nice.

Also very solid gross margin, 52%. With all that together, the EBIT increased to 610 million, which equals to a margin of 26%.

Backlog is a record high on a little bit more than 5 and a half billion Swedish krona, which is the highest ever. Also, we launched new financial targets during the Capital Markets Day that we had on August 31, which also the picture that is not anymore here was from.

Pattern Generators, starting with that, and this was happening also during the Capital Markets Day that we launched two new products. One is called SLX Kite, which is a next generation semiconductor mask writer with extended and enhanced capability, and also for the semiconductor segment, a photomask inspection machine, IQX.

These are very important launches because both of them are actually expanding our available market, it's not only an upgrade of already existing equipment, it's really offering new capabilities that will enable us to grow further in the semicon market. On the business side, we saw a decrease of order intake down to 616 million.

We had three tools on order during the quarter, one Prexision 80 Evo, which is the display machine, and two SLX mask writers for the semicon industry were received. Increase of sales up to 580 million, 20%, and in that number, we have a small contribution from our recently acquired company, Cowin, that is equals to 23 million.

Gross margin stable at 59%, and EBIT also quite stable on 188. In that one, we had also a negative effect from the acquisition of Cowin with 13 million.

That corresponds to a margin of 32%. In the backlog, we have 11 systems in the order backlog, which equals to 1.741 billion krona.

Another news in the Pattern Generators division, and this is just after the quarter, but we have appointed Mikael Wahlsten as the new Senior Vice President of Pattern Generators, and that is effective from November 1, quite soon. He is replacing Charlott Samuelsson, who has decided to retire.

Charlott had 30 years with the company, very long time, and Mikael has a little bit less, but still 23 years with the company, also very senior leader that is taking over. He's recently had the position as Head of Product Strategy and Development within the Pattern Generators division, we look very much forward to welcome Mikael to the management team.

Going further with the next division, PCB Assembly Solutions, we still see that the demand is continued to be quite soft in our segment, which is the high-mix and low-volume segment. We also see some price pressure, especially from Japanese competitors, and it's quite visible in the order intake that ended on 367 million, which is a decline of 9%.

A little bit up on the sales compared to the same quarter last year, 14% up to 358. Quite strong gross margin of 41%, we were able to increase the EBIT to, I would say, a decent 42 million and a margin of 12%, which is not that bad, actually, in this environment.

Also, the backlog increased a little bit to 266 million, which is quite a good backlog, actually. See a little bit improvement on the result, although the market is still quite soft in the PCB Assembly Solutions segment.

High Volume, we see a continued momentum here, and we see a difference between the markets inside China and outside China. Outside China, we saw a very good demand, while the domestic market in China weakened a little bit.

This is a typical cycle in the China market, where we see the majority of orders coming in the first half of the year that is supporting our customers to launch the product at this time of the year, in the autumn, more or less. All together, we saw a very nice order intake increase with 42% to a little bit above 600 million.

Also, very nice increase of sales to 569, and quite solid and normal gross margin of 41%, EBIT on 74. Here, for comparison, we have the cost of the ESOP program impacting 25 million here.

Adjusted for that, quite a good increase on EBIT as well. Margin 13%, and very strong backlog of 1.2 billion Swedish krona.

Strong performance in the High Volume. Then on Global Technologies, here, we saw all the stars being aligned for the quarter, we had an exceptionally strong quarter, both driven by volume, but also by product mix.

We'll talk about product mix when we come to the profitability. We see that the inner market conditions are still very strong.

We could see that it's driven by investments in AI infrastructure, but also investments in developing advanced packaging, and also defense, the defense segment invest quite a lot of money. Very good for us.

We increased our orders with 33%, a bit more than a billion, very nice. We had a doubling, more than a doubling of the sales, 105% up to 852.

A super strong gross margin of 60%, and we had a very favorable product mix in the quarter and volume. EBIT also very much up to 359 million.

A little bit of that is a revaluation of a consideration in Surfox that impact 15 million, or 2%, on the EBIT margin that was 42%. Also had quite low cost in the quarter because of partly the summer period is in this quarter.

Backlog, very strong backlog, 2.3 billion, more than doubled than the old one, super strong performance here, although a little bit exceptional for the quarter. All that has enabled us to again, I would say, revise our outlook for the full year.

There's only one quarter to go now, but we believe that we will end on a sales number of 9.75 billion for the full year. That is a new outlook from the Board of Directors.

With that, I will hand over to Pierre to talk a little bit more in detail about the financials.

Thank you so much, Anders, and good morning from my side as well. If we look at the numbers quarter by quarter, you can see that we are just below the very strong Q1 and Q2 in terms of sales at 2.4 billion, up versus a low quarter last year with 38%.

The aftermarket revenue was a record 606 million, and we saw good improvement across all divisions in the aftermarket, which is one of the initiatives we are driving, and in particular in Global Technologies, the increase was substantial. The EBIT margin ended at 26% in the quarter, which we consider good given the mix between the various divisions we had in this quarter.

If we look at it on a rolling 12-month basis, we are now up at 9.3 billion with an EBIT margin of 28%, and with the aftermarket continuing to grow and has now passed the 2 billion mark distinctly, constituting 24% of our net sales. If we look at the improvement that we had over last year, which was more than a doubling of the profitability, we had a good volume effect, but we also had a gross margin impact, and this was largely stemming from the Global Technologies division where we had not only record volumes, but also record gross margin in the quarter, stemming from exceptionally good product mix, high aftermarket share, software updates, et cetera.

Really, really good. We don't want to extrapolate this level going forward, but really, really good in the quarter.

We are growing the organization in all areas and especially on the R&D side, where we are investing a lot in product development across the group, not least in the Pattern Generators division. This took us in the end then to 610 million EBIT, or 26%.

If we compare with the same quarter last year, this is, of course, not the only metric, but you can see that we are improving in all divisions, and if you would exclude the 25 million ESOP costs in the High Volume division, you would see that this division would be on similar improvement as Pattern Generators and PCB Assembly Solutions. The main difference to same quarter last year is obviously coming from the Global Technologies, where we had very low results last year and great results this year.

If we look at the cash flow, we have strong cash flow from operations. I'm also happy to see that we are developing really good on our receivable collection.

Although we are growing strongly, the change in working capital is mainly stemming from a higher inventory, which is logical in a period where we have this growth. If we look at the investing activities, we have acquired in the beginning of the year ETZ and Cowin, which is then 184 million, and apart from that, the majority of the investments are actually stemming from investments in facilities.

We are building in Taiwan and in China, et cetera. Financing activities is largely the dividends that was paid out in the second quarter.

We have now a very solid cash position above at 2.9 billion, and cash at the end of the period even above 3 billion. Really solid financial position as well.

With that quick walkthrough, I hand the word back to Anders again.

Thank you, Pierre. Short, some few words on sustainability.

We are improving our carbon emission footprint quite nicely, and the majority of that improvement comes from that we're using much more renewable energy in all our facilities that we have, and we are today now or in the first half of 2026 at 96% of all the electricity that we use are coming from renewable sources, and that is a transition that we work quite hard with. Another part of sustainability is code of conduct, and a part of that is among our suppliers.

Here, we see a decline that we have a lower percentage of suppliers that have signed the code of conduct on 87%, and high-risk suppliers down to 58%, coming from 60 and also from 95. Reason for that is that we have acquired companies that has typically quite a low percentage of that, so that's dilution.

Of course, the effort is here to bring the acquired entities also up to our normal standards, and of course, even exceeding that over time. That is an ongoing work, and yeah, we will continue to share the progress on that side.

That was the end of the formal presentation, now we are on the Q&A.

Yes, thank you Anders and thank you Pierre, and so now we are moving over to our Q&A session and we will be starting with Handelsbanken and Fredrik Lithell. Please go ahead and ask your questions, Fredrik.

Thank you very much. Thank you for taking my questions.

I think I start with one and then jump back into the queue. Anders and Pierre, maybe you could elaborate and put some color on the impressions from your customer dialogues from the new machines you have just launched, the Kite and the IQX.

How have the reception been and what are the talks about during Q3? Could you address that a little bit?

Would be interesting to hear. Thank you.

Yes, especially on the IQX, customer interest is really, really high, and we are developing that product in cooperation with some key customers really to make sure that we are ending up with the right specification and the right configuration. We will quite soon ship the first tools to customers, if not yet already happened, it's very around this time.

We continue to see good demand. Actually, the most dialogue is to accelerate deliveries at this very moment, but of course we are in parallel also developing the product, so that is.

On that, you say good reception, that's nice to hear, but you have competition here, there are already sort of equipment available in the market. What is it that sort of makes you stand out to the tune that customers are very happy that you are coming with this machine?

I think it's filling a hole or a gap in the kind of product portfolio from the competitions. We are a little bit similar to SLX.

We are more in the mature node segment with this inspection machine, and most of our competitors have focused all the development work on the small nodes actually, there is a gap in the market. Also, our tool is much more efficient.

The cost of ownership, the productivity, everything is actually much better than competition, we believe it's a better choice. Of course, there, as always, there is a switching cost if a customer is used to one product, there it's required a little bit of effort to change, of course, but it seems like it's worth to do that.

Okay. The SLX Kite, any color on those dialogues?

Not yet really to— We see a great interest for it, and obviously here it's a market with basically two large players, and we think that this will further enhance our edge in this competitive landscape. This is also the productivity increase and in particular is what the customers will go for, we believe.

Positive reception, but jury is still out there.

All right, thank you very much.

Thank you, Fredrik. Now we move over to DNB Carnegie and Mikael Laséen.

Please go ahead and ask your questions, Mikael.

Thanks a lot. Congratulations to a strong quarter first of all.

You mentioned that Global Technologies had an exceptional quarter and it should not be extrapolated. Can you clarify this, what this refers to?

Is it the gross margin primarily, or is it also the sales momentum and order intake?

No, it's more on the result side, exceptional gross margin that is record high, and it's a combination of very good utilization, low costs in high deliveries despite being in the holiday period, it's the product mix, what we have shipped to various customers, high portion of aftermarket, high portion of software, et cetera, et cetera. It's really exceptionally high, and at the same time, relatively moderate cost development.

So—

Okay. Do you see this in the order backlog that this will normalize quickly now in Q4, or is it gradual over time that this could come through, that the mix is a bit different?

I think we will already see somewhat different numbers in the fourth quarter. This is a bit of an exceptional quarter.

Okay. Can you talk to us about lead times in the Global Technologies segment for PCB test and die bonding, and which of these two have the strongest momentum right now going into 2027?

I think we have good momentum in both these. We have also a good backlog, obviously, and in particular in the PCB test side, we have a bit longer lead times than we would maybe wish for.

We have a very good position. If you compare quarter on quarter where was the strongest order intake, I would say on the die bonding side rather than on the PCB test compared to what we have seen earlier in the year where PCB test has really been the strongest driver.

Is the capacity situation holding back orders in any way or is that not something that the customers are thinking about? The lead times for you to deliver.

Our view is that we haven't made any substantial losses based on lead times.

Thank you.

Thank you, Mikael. Now we move to London and Oliver Wong at Bank of America.

Please go ahead and ask your questions, Oliver.

Hey, guys, thanks for taking my question. Wanted to focus on what you mentioned on ASML and TSMC, the new 12-inch photomask, very exciting.

From my understanding, you guys focus more on the mature nodes and TSMC focuses more on the advanced nodes, yeah, just curious if you share more color on how much of an impact that you think this initiative could potentially have on your business. I think, yeah, 12-inch is

the normal photomask size is 6-inch for the semiconductors, this is double the size and that is, as you say, intended for the smaller nodes. On the smaller nodes, 75% of the photomasks used are actually laser-based written, or laser writers could be used on 75% on the photomasks.

It's only on the 25% of photomasks on the small nodes that are another technology, electric beam or electronic beam is actually needed. For us, it's quite neutral in which kind of node size that the growth is happening.

It's correct that the 12-inch is intended for the super small nodes really, and it has been discussed, yeah, during years actually now, but now finally TSMC and ASML is coming together, and also with some other players in the industry, and set that. Our position here, it's really, really good because we developed the SLX to be capable of managing 12-inch photomask already from the very beginning, for us, it's quite a small adaptation to do that.

We believe that we have a very good position to capture at least the laser-based masks for the 12-inch sizes.

Got it. This is smaller nodes anywhere up to even 2 nanometers, or—

Correct, yes.

Okay. I thought that you guys were capped at maybe 60 nanometers.

That is the resolution on the patterning, it's not linked to the node of the semicon.

Okay. Got it.

Very helpful, thanks.

Thank you Oliver. Now we move over to Anders Åkerblom at Nordea.

Please go ahead and ask your questions, Anders.

Thank you. Hi everyone.

I wanted to ask as well a bit on sort of this ASML and TSMC initiative, it was out in September, if I'm not mistaken, obviously quite long-run optionality. What you said now about sort of the SLX being able to handle 12-inch was quite interesting, I thought.

In the future, firstly, do you expect some sort of pilot sort of orders to when they're testing this and seeing if it actually works to transition to 12-inch? Secondly, should we expect sort of a meaningful ASP uplift on future SLX orders if that's on the 12-inch format, or will it be somewhat similar relative to 6-inch?

I think it's quite difficult to say when we will see orders on the 12-inch. Everything has to go in sync here, and it's not only ASML and TSMC that need to be aligned around the 12-inch, but when that happen, we will be in a super good position to capture that market.

Given that, I would be surprised the ASP should be higher, of course. I don't know really where it could be or should be and so, but it will be a unique product for that.

The installed base will have Thank you, Anders. The the installed base, all else equal, will how how should one think about replacement of of of that?

It depends on how big breakthrough— If it's successful.

If it's successful.

The whole installed base is based on 6-inch.

Yeah.

100% of them, so.

Sounds quite interesting long-term, I must say. Even if it's difficult to say now, I get that.

On Global Tech, obviously, incredible growth, but when you talk about expanding capacity, that's the focus right now, you've previously sort of alluded to meaningful about 25% capacity growth in PCB test towards year-end, does that still hold? Should we expect that to be more meaningful, or is that reasonable still?

I would say this holds as planned, so. Entire plan holds there.

I think you can see in the sales result or the sales increase also that we are able to produce more now, but the extension is not yet finished. How are we—

Okay. Sorry to interrupt you.

How are you able to produce more obviously, you're more efficient. Why is that?

It's also a mix in between divisions, it's not only the PCB test that is contributing, but it's also the whole supply chain effectiveness and how fast we can get the machines through our factory, and also in the configuration. It's, I would say, normal productivity work, and on top of that, we are expanding the factory as well.

Thank you very much. I'll get back in line and not shoot too many questions.

Thank you.

Thank you, Anders. Now over to Ina Djupsund at SEB.

Please go ahead and ask your questions, Ina.

Yes, thank you, and thank you for taking my questions as well. I have a few, but I will start with one at a time.

On these kind of display orders, it's been a little bit more quiet on the order side here, do you see that there's any macro factors kind of impacting order intake, or is it purely kind of a timing thing?

No, I think there's no macro factor. The interest for high-end display is still there, and the transition is still going on, and I think we see even more applications, new applications coming up, also with more foldable phones and more advanced displays with automatic privacy filters and stuff like that, which is driving the need of advanced masks.

From the market side, no really difference, it's more of a timing effect, and maybe more normalization effect as well, from our side, we don't see any change in the pattern, but it has this kind of long cycles.

How big share of the installed base for display mask writers do you think will have a kind of more urgent replacement need in a near-term or medium-term? Could you give some flavor on that?

I don't have that number really, but it's typically two, three machines per year, I think, isn't it, Sven? This.

If you calculate backwards, it's about that type, and we don't see a dramatic change, no. Okay.

Then

on Global Tech, I saw ASML is starting to talk that customers are willing to place order for '29, '30 already. What kind of visibility do you have on the Global Tech kind of order side?

I think you previously said you're pretty much fully booked to the beginning of '28, has the visibility kind of changed here?

Not materially changed. We don't really take orders so much beyond that in Global Technologies.

Okay. Then if you look at the other parts of Global Technologies, do you expect, not the PCB test or die bonding, but the, yeah, the other parts, do you think any of these will kind of more meaningfully pick up in order intake in the let's say next 12 months?

I think we have some very good positions. If you take our plasma solutions, it's looking very promising.

Exactly when the industry is taking the next step is a little bit hard to predict, but we think we have really good position there. We also see a greater interest in the 3D nanoprinting part, but it's still to materialize.

Thank you. For me, I get back in line here.

Thank you, Ina. Then we will move back to Fredrik Lithell again at Handelsbanken.

If you have any follow-up questions, please go ahead.

Yes, thank you. Maybe if we stay with Global Tech, and you have this capacity expansion at PCB test in Wartheim, could you elaborate on the timing on that and how the actual lift will be in terms of being able to sort of shorten the lead times for you in 2027?

We will be ready beginning of the year, and I think with some trimming towards the end of the first quarter, we will have about a 25% capacity increase. Then it will depend a little bit on how strong the order intake is and how quickly we can reduce the backlog, of course.

Okay. Can I take another question as well on your R&D that also came up in Q3?

How is that going to progress forward? Do you expect sort of the growth in R&D to mute a little bit in coming quarters and on a 12-month basis, because you have sort of passed quite large developments now, or should we expect the same kind of growth?

The growth rate is likely to decline, but the level is not going to decline.

All right. Clear.

Thank you.

Thank you, Fredrik. Now we move to Mikael Laséen at DNB Carnegie to see if you have any more questions.

Yes. I have.

I was curious here about the PCB Assembly Solutions segment. You had a good gross margin this quarter despite comments on weak demand and pricing pressure.

Can you explain the strong margin, the gross margin, and also comment maybe a bit on the restructuring program, the cost, how we should think about that, the restructuring charges and the effects of those?

Yes, if we take the margin question first, we had a little bit stronger sales in the US, where we had good margins in the quarter. This is explaining a little bit that it's not a huge jump that we do, but it's a little bit better.

If you take the restructuring program, I think we have communicated that we will have at the end around 100 million cost taken out, and there is a little bit still to do of that activities to do. We will communicate them once they are clarified.

The majority is— The largest portion is taken.

The largest portion is taken. I think in Q2 that you said you have charges of 100 million until 2027, the end of 2027, it's, I guess, a long-term project.

It's a long-term project, yeah.

Will it be evenly distributed or backloaded in 2027 or how should we distribute the charges?

We have taken more than half already, and the vast majority of the remaining part, I would say, is going to be taken likely in Q4.

Okay. Can I also ask about High Volume and your comment about weaker domestic demand in China, the background for this slowdown on orders and sales, and is this more seasonal that you normally have in the second half, or is it something that could be more lasting?

We have typically stronger order intake in the first half and stronger revenues in the second half of the year. It's a little bit the way the Chinese consumer electronic work, where they have this kind of pattern.

This is one thing. Then, of course, exactly how the Chinese economy is developing is another factor of this, and that's a little bit more tricky to have a call on how will it be long-term, short-term, strong or not so strong.

If we compare the third quarter with the quarters earlier in the year, we had a much better development outside China, whereas we had a strong development in China in the order intake in the first half of the year.

Okay. Thanks.

Thank you, Mikael. Now over to Bank of America and Oliver Wong for additional questions.

No further questions on my end. Thank you.

Okay. Thank you.

Then we move to Anders Åkerblom at Nordea. Do you have any more questions?

Always. I wanted to ask a bit on, obviously, seeing quite sanguine, and it's developing in a good way, sort of high level.

If we focus a bit on any potential sort of risks that you see, are you seeing sort of any sourcing issues to any extent currently?

We have not seen that many. We see that a lot of customers and a lot of peers and companies around have maybe not issues with sourcing, but at least a lot of price increases on stuff and related to that, but so far, we have managed very well the situation on our side, both from a cost increase, but also from availability viewpoint, no big effect on that.

Of course, we will likely see cost increases and freights and stuff like that, we are of course exposed to as well, and the intention is, as always, to forward that to the customers as much as possible, of course, but I would say that in the quarter or even before, no really effect.

In terms of sort of customer demand, given what you've said just now, do you think there could be any effect of pre-buys in the numbers in your order intake?

It's very difficult to say. We do ask quite a lot of downpayment that is not reversible at order cancellation, this is a security that we have.

We haven't seen any cancellation or change of delivery dates, at least not later, everyone wants everything earlier, actually, so that is, or everyone wants it early. Nothing like that.

I think the equipment that we sell, some people don't buy that for speculation, it's quite expensive,

so. Fair enough.

Thank you. Final question just from my end, and sorry to push on this every single quarter, but when we look at sort of deliveries for next year, just from your guys's viewpoint, do you think that the market is sufficiently taking consideration of the fact that order intake in your previous products at least in PG has been a bit slower recently, or do you think that the contribution from the new products will be material enough to maybe offset a bit of the recently somewhat slower order intake in PG?

In PG, I guess, relate, and I think it's, yeah, it's slower than before, but still not really low, and especially on the display side, I think we see quite stable demand on the semicon side. I think that will continue or maybe even increase, but at least continue into next year.

I think display has this cycles, and if you look on the order intake over time, it's kind of not dramatically down. I don't see a big difference in that.

If anything, maybe up, but it's quite normal, I would say.

Okay. Thank you very much for taking my questions as always.

Thank you, Anders. Finally over to Ina Djupsund at SEB.

Any more questions from you, Ina?

Yes, I have one question. Could you give some flavor on the kind of raised outlook you give here, where is the kind of incremental sales coming from?

Is it Global Tech where you see we will be able to deliver more, or what's driving this?

It's actually broad-based. I would say that except for Pattern Generators, where we have a little bit longer view on what the sales would be from quarter to quarter, I would say that we are seeing a little bit better sales for all other divisions compared to what we were doing earlier in the year.

Okay. Thanks, that was all for me.

Thank you very much. With that, we have reached the end of today's presentation of Mycronic's Q3 report.

Thank you very much for attending.

Thank you.