Hanza AB (publ) ($HANZA)

Ladies and gentlemen, shareholders, stakeholders, other interested parties. My name is Francesco and as Chairman of the Board, I have the privilege of introducing you and welcoming you to Hanza's Capital Markets Day. This afternoon will be full of facts with a glimpse of the past, but mainly a trajectory into the future, explaining the logics behind our new financial targets and finishing up with a Q&A session at the end. And I hope you're active because that's the most interesting part of the day. You can be provocative at the worst case, you will not get the answers. It will not be a monologue by our CEO, but we will have our whole lineup of management within Hanza and you will evaluate the spirit of the company if it's there or not. Erik, can you join me here? Erik does not need an introduction. He is the founder and the CEO of the company since a long time back, but he has since 3 months back, a new title, and that is the [indiscernible]. How do you like that?

I like it very much. Thank you.

You should all know that that Erik spends half of his time in Germany nowadays. So every other week, supporting not only with operational leadership, but mainly to more importantly, to influence with the Hanza culture and values. An acquisition is simple to make, but the integration is so much harder, and I think you're doing it the right way. In Germany, you would say, [Foreign Language]. Ladies and gentlemen, Erik Stenfors.

Thank you, Francesco, and a warm welcome from my side as well. It's really great to see you all here today so many people. And of course, a special welcome from those of you following us online. Today, we would like to give you a deeper understanding of Hanza, not only what we do, but also why our model works, how we built the company step by step and how we intend to build it moving forward. But before we start, let me just briefly walk you through the agenda. So I will give you a short introduction of the company, and then you will meet, as Francesco pointed out, some of our fantastic leaders. They will give you a lot of insights and details about operation, sales. We will hear from our new member of the family, [indiscernible]. We will hear about the defense program links. We will hear about how we keep it all together. HowsUnited then, of course, financial info, financial development and our new financial targets. We will take a short coffee break in the middle, and we believe plenty of room for questions at the end. So please use that opportunity to ask any questions. As an Franco said, they may be provocative, but that's okay. So let's start. And I think to understand Hanza, you must understand the complexity problem we have in our industry. Modern products, they require several different manufacturing technologies. Normally, traditionally, they are provided by 1 supplier each. You would have one for the electronics, another one for the mechanics, the third one for the cable harnesses. You may end up like this illustrated here with different technologies in -- by different suppliers in different countries. So quite complex. And it's exactly this problem we would like to solve in Hanza. That's why we started the company 17.5 years ago. And our answer is our business model. So let's have a look. Our vision, our guiding star, our compass is manufacturing made easy. We would like the procurement manager to look like the person on this slide, completely relaxed, calm and in control. So that is what we do. Manufacturing made easy. How we do it is described by this. We have built an organization which embraces several different manufacturing technologies. And it means that we can come to the customer and with a consolidated offer, so they can get 1 responsible partner for the whole manufacturing chain. That's how you simplify manufacturing. And I think this model, the easiest way to explain it is through a real-life example. Mitsubishi, a company that had a division called [indiscernible]. Next, developing manufacturing, selling, forklifts. We did a case study for a few of their products. We see a picture here. And we came up with this supply chain. Not really a surprise. This is how it looks. Again, different technologies in different countries, making it quite complex. And our proposal to Mitsubishi was this. consolidate the supply chain to simplify it. And not only do you get simplification, but you also get lower cost, you get a more robust supply chain, lower lead times, higher delivery accuracy. And on top of all this, you will also save the environment because you will remove a lot of unnecessary transports. So this is our model in a nutshell. This is, let's say, one of the features of Hanza. And another feature of Hanza is our execution model. And if you ever start a company, there's 1 thing with a business model, but trust me, you really need to look at execution. That's the key. And what we have done is to execute in steps. Since we started the company back in '08, we have had phases, each phase with a clear target to lift Hanza up 1 level when it comes to customer value. That's the most important thing to increase customer value. Now we have passed 4 of these phases, the last 1 was HANZA 2025. And today, we launched Hanza 2028, the fifth phase. And I'd like to explain then exactly what happened in '25, how we increase the customer value. This is Hanza back in '22. We have then created 5 manufacturing clusters in Europe. We also have something called gateways that's stand-alone factories not clusters. So we had 1 in China still have. What we clearly saw then was that there was an advantage of scale. And I'm sure Lars will also come into this. When we reach a certain size of our cluster, our customer value increases. We had 1 big cluster in Baltics, 700 people, and then the others were not as big. So we said, we need to scale the customers. We need to have more even distribution of our clusters. So that was what we launched back in November '22, a journey to make the clusters more even and larger. And then off we go. And what we have done then is to build factories, acquire factories and expand the clusters, all of them with the intention to find this perfect map, and this is where we are now. And I have to say we are quite satisfied with the new map. You see that all the clusters are above 700 people. Actually, we were a bit ahead of our planning. We didn't expect to reach this far. But this is the perfect map. This is exactly where we would like to be right now. Now when it comes to financial targets, you cannot just have financial targets hanging in the air. It has be based on something. So we base our financial targets on our operational targets. So if we succeed with our operational targets, we will reach our financial targets. When we then calculate it back in '22, if we succeed with 5 clusters in the same size, what would be our sales, we said we will come up to about SEK 6.5 billion. So from SEK 3.5 billion back in '22 to SEK 6.5 billion when we enter '26. Now the case became a bit larger and hence, also, we have reached SEK 10 billion in sales. But the most important thing is not sales. It is the platform we have created because that means now we can enter the next phase. And that is Hanza 2028. Again, the point of a region is to increase customer value. So in '25, which is about scaling Hanza, now it's about adding technologies. So this is very important because if you have been following us then from '25 strategy, you saw we were increasing in Poland. We were increasing in Finland. We're increasing in Germany, no surprise because it was part of HANZA 2025. Now if you keep this in mind, it will very clear the actions we're going to do in Hanza 2028. So what technology should we add? How can we increase customer value with adding technologies? It's a simple answer, ask our customers. So it's important. We are pure contract manufacturer. This is important. We don't have our own products. We believe that if we would have our own products, we would compete with our customers about the resources, we have pure contract manufacturers, but that also means we can only grow as fast or as slow as our customer base. Therefore, we spend a lot of time to design our customer base and that we will hear much more about today how the customer base looks. But this is important then. We are Connected to our customer base, we would like to increase, meaning that our customers increase, we must provide them with more tools. We must be able to more consolidate the supply chain in order for that to grow them to grow faster. So that's the whole idea behind Hanza 2028. Now this is the concept. You'll learn much more about the details from our COO, when it comes to technologies. Okay. So we have a business model. We have an execution model. What is the most important if you run a company? People, of course. So we spent a quite large part of my time and a lot of my colleagues time to make sure that we could attract, recruit, develop, keep the right competence. When we buy a company, we do HR due diligence to make sure it's the right company. We work a lot with the culture to make sure we can share resources between the factories and the clusters. So this is also a very important part of Hanza and therefore, you will hear more about this today as well. So my final slide, transparency. This has been very important since we started Hanza. So we have an open interface and 1 of the layers is, of course, the financial transparency. And you might have noticed that a year ago, we changed our interim report. And if you promise not to tell, I can share a secret, we did look at some of the best-in-class interim reports and did some copy paste in order to enhance our report. But that's just one level. Nobody would buy shares in the company based on the financial reporting. That's just a standard thing. But you need also to know the strategy, the organization and the plan for the future. And that's what we will focus on today, of course, numbers as well. But it's really important that we understand where we are heading. So that's another layer of our transparency. And the third layer, we run an open door interface. We welcome shareholders, investors, analysts to visit our factories, bypass CEO, go directly into the heart of Hanza, talk to the people. And now we have a roadshow in May 7 in our cluster in Sweden. If you have the opportunity, you can sign up by sending an e-mail to [email protected]. So [email protected], and then you will have a roadshow in Varmland, Sweden. And you will also see the latest factory we opened just 2 weeks ago. We had the honor to have the Defense Minister of Sweden to cut the ribbon because it is important with the industry in Sweden mainly because of the defense also. So highly recommended if you have a chance to use that layer of transparency and talk to the people in the factory. Now Hanza is growing, and therefore, also our information flow must grow. Today, we launched 2 new things. Customer segments upon request. You'd like to know more about where we are in the different segments. So we will talk about this today. The second thing we are launching is financial segments. Why do we do that? Well, our external reporting must reflect our internal reporting. And now what we will hear from our CEO, is that we grow together clusters into regions. And that is how we will follow up the information internally, and therefore, we should also do that externally. So that's also something we present today. But all in all, I think that our transparency has really contributed to the shareholder value that we've been able to create over the year. This is very important. And with that short introduction, I will leave the floor to our COO, Andreas Nordin talk about business development and operations. So please welcome, our COO.

[Audio Gap] want to develop the relationship that we have with our existing customers. And when that comes to operations afterwards that we need to provide good deliveries to our customers with good quality. But we talked -- Erik mentioned about technologies. So what are we going to do during this strategy period. We have a technology road map here. We have the 6 main technologies within Hanza today. and we can start with the heavy mechanics. So what is heavy mechanics. You can think about products, steel of centimeters, products with steel of centimeters. And we're going to machining, you have grinding milling, turning of steel sheet metals also products, but here with millimeters instead. Electronics, it can be boards, can be boards built into a box that we call box build, cable harnesses, it can be 1 cable, but you can also put cables into a harness. And then we have a complex assembly. We can take all the parts from what we saw and put it into the final module or a sub module that we deliver to the customer. So those are the 6 technologies that we have today or the 6 capabilities that we have today. But in order to stay relevant, we also need to look into is this what the customer needs. So as Erik said, we are here for our customers. So do customers want to continue with these. They want this. Yes, that's 1 question we need to answer. The next one, do they want to add something? That is also something that we're going to analyze during this period and see if we're going to add some technology. But is it also so that we have some sub technologies within these main technologies that we need to develop. That is also what we are going to look into during this strategy period. And once we have set that plan, we know what to do. Of course, we're going to do the development plan to bring them into Hanza in a good way. And when all this is done, we also need to produce in a good way, and we do that. We have a lot today. For those of you who have been around and seen our factories. We have a lot of automation, a lot of robots working in our factories, but we are going to increase that further. And we have also some initiatives on the AI to see what can that support us more with. But let's have a look now on our manufacturing clusters that we have today. So in the -- it's purple dots. You see the clusters. And in the brown-orange dots, those are the gateways that Erik talked about. But if we look now on the focus for this time on the clusters, and we can start with Sweden. We can see here that we have the complex assembly. And you see, again, the 6 technologies down there that I just talked about in the previous slide. And then you can see how we are now putting them where they are present in the clusters. So in Sweden, we have complex assembly, sheet metal, electronics and machining. And when we move to the east in Finland. We have complex assembly, sheet metal, machining and wire harnesses. We go a bit further south into Baltics, complex assembly, sheet metal, machining, wire harnesses and heavy mechanics. Around the heavy mechanics was the thick part. Central Europe, complex assembly, sheet metal, electronics and wire harnesses. And Central Europe is here a cluster that is combining Czech Republic and Poland. And then in Germany, complex assembly and electronics and Sweden that we have already talked about. So this is what we have today. And this is what you're also going to analyze. Are we going to add some capabilities in the clusters. Are we going to remove some capabilities in the clusters. But this is also going to be analyzed during this period. Besides this, with technologies, we also need to ensure that we have good investments of machines so that we can produce well to our customers. And how do we invest in machines, either we invest in machines by replacing old machines that need to be replaced so that we can. The worst thing that we can have is an unplanned problem with the machine. And then we cannot deliver customers not satisfied. So that we need to ensure that we have the right level of machines in all our clusters and factories. And then we also -- but we also have customers that they want something and a special thing, and then we are also investing and buying machines to support that customer. But everything is done with a clear return on investment case that we are preparing, taking a discussion on and then taking the decision on to move on. To summarize these 2 then, you saw that in the clusters that I show that we have different capabilities in each cluster. There is not a strategy today that they should look exactly the same. Because some of the technologies that we saw, they benefit from putting together group them, group it and use scale and some of them, they are better close to where the customers are. And we also look into our customers constantly, customers, products to see, okay, where do we need to continue our investments. And we try to keep that stable over the years, so we don't get peaks in investment. We try to keep them steadily. A lot when we are a -- like Erik said, a contract manufacturer, we don't have own products, we buy a lot. We buy a lot either we buy steel that we work with to make a ton into a product. But you can also buy other things that we are putting into an assembly make this complex assembly or we can buy products just to send together with what we have produced for the customer to do the installation. So here is also an important part that we work together and some here as well is benefiting from working -- putting together. We can have a benefit when we negotiate with our suppliers. And some of it is better out in the regions where they know what to buy. Important here also to eliminate risk is that we do have a contingency plan for suppliers, for products, components. So we don't end up in a situation where we are not getting a supply. We can always have a single source, then we need to have a strategy for how single source is. We can be in a place in the world where we also need to be a bit more careful on how are we going to source that material. So there is also a contingency plan with actions on what do we do if something happens in that part of the world or with that specific supplier? And of course, very important that they sign our code of conduct. So the clusters we have. They are still the cornerstone of Hanza and the main building block of Hanza. Now we are turning this. We are not moving into region. We are just grouping the clusters into region, but the clusters, there are still the main cornerstones that reflects the business idea that Erik talked about. But how have we done that now? We think about from a customer point of view, how do we serve the customers today and how do we talk to the customers today. And you can see, in many cases, we are serving the same customer from different factories and different clusters. And that's why we see that the strength of the region is in Region North, basically, we can see that it's a copy of Sweden. So cluster Sweden is also Region North. Region East, the 2 main classes in Region East is Finland and Baltics. We are serving the same customers there. Many customers are the same. So we see that there is a benefit of grouping this into region, and we can buy then address the customers in a good way. And then we have Region Center, where we have Cluster Central Europe, Czech Republic, Poland, together with Germany. And we have also grouped the gateways that Erik talked about here. So we can see that the gateway in Israel is in center. Gateway in China and Abu Dhabi is in real East. Again, classes are still the main part regions is how we are putting it together to serve the customers. Just to reflect here the same what I just said. We have the 3 regions. We still see the clusters in the regions, and we have some support functions into this. Important here also, we made a lot of acquisitions the last years, and like Francesco said here about Erik being half of his time in Germany. And that is really important. It's a big acquisition that we made and everything around the integration is very important. And that's why we have said that [indiscernible] and BMK are run separate during this year. It can be so that they will be placing back into this organization at some point in time earlier than the end of this year. But we have not set a time limit just that it should be done before end of December 2026. And then we have also the governance around that is, of course, we have targets. We have KPIs with these guys, and I have with the region and with the cluster, I do a weekly follow-up, I do a monthly follow-up with them. And these are both financial targets and operational targets. Now we move into customer base. So how do we choose the customers here. We are here for our customers. And at the same time, there is a risk, right? If we have 1 customer, Hanza is 1 customer. Of course, there is a big risk if something happens. We need to choose our customers wisely. And then we are grouping them into segments that we will see on the coming slide. But here, the diverse customer base. So no customers should exceed 10% of our turnover. Our turnover is SEK 10 billion, so it shouldn't be more than SEK 1 billion. The pen largest customer should together account for less than 50%. And then the second one here is the total cost of ownership. How do we move the customer from just being a production part to the customer to part production plus [indiscernible] into a total cost of ownership. How can we work with the customers to check the pain points they have in their supply chain. And then we can support them by rewiring those supply chains. Business development. So we have a lot of customers that come in for and you will talk about that with BMK. A lot of customers coming in to answer. So how can we benefit from that. There are customers that can buy things from electronics, from BMK, but how can we also bring them into the rest of Hanza other capabilities? So how can we cross-sell the other factories, of course, very important. And we are also prepared in our customers to discuss tailored solutions. So if there is something that they'd like to have for them to be produced in a certain way at a certain place. We are also there to discuss that, not whatever conditions, but then it's a good win for both of us. Yes. So let's go into the segments. We sent it out in the press release today as well, but I'll just go through them a little bit more today. And I know that you have been asking for that for a long time. And finally, we have now released that. But how have we chosen these segments? And how have we grouped it is mainly where the product that we deliver where the end market is for that product. So we have chosen 5 segments. We're the first one, electrification and energy system. That is products and systems that are used in electrification and energy infrastructure, such as, for example, power generation and distribution, energy storage and so on. The second segment, Defense and Security. So products and systems used in defense and security applications. This goes -- you'll see what that is. That's military, civil security and other mission-critical environments. The third is heavy equipment. So it's mobile heavy-duty machinery. Industry vehicles used in, for instance, the mining, construction, forestry, agriculture, the fourth one, industrial and professional products. Those are products that are in stand-alone equipment used in commercial and specialized industrial environment. And the fifth is Industrial Machinery and Systems. And they are used in automation, manufacturing, other material flow systems. So those are the 5 segments that we have gathered all our customers into. And the size of those, they are like this. Again, on the same order as we saw on the previous slide, and the biggest one in our size is the Industrial and Professional Products of slightly over SEK 3 billion, followed by the electrification and energy system of SEK 2.4 billion, Industrial machinery system, SEK 2.1 billion; heavy equipment, SEK 1.4 billion and defense SEK 0.8 million. Good. With that, I hand over to BMK and Florian.

Yes. Yes. Thank you very much. As Erik introduced, I'm Florian. I'm here from Germany, and I want to inform you a little bit about who is [indiscernible] and why is BMK and Hanza together a dynamite for the manufacturing industry. So some key messages, which I want to show you, at first, it's BMK's development and the market position. I think of you you checked about who is BMK, but I will give you some details. Then most important, the core business, core capabilities we have and our USPs as one of the biggest DMS companies in Germany. Then I brought some showcases because this is always the best to introduce what we are doing. I cannot show or I'm not allowed to show all, but I have 2 examples. And in the end, I will give a short outlook about BMK and Hanza now together and how we want to disrupt the German manufacturing industry together. So all of these 3 guys, you don't know so the founders of BMK, Mr. Bauer, Mr. Miller and Mr. [indiscernible], and they founded the company in South of Germany in [indiscernible] about more than 30 years ago. It was 1994. It was a management buyout of a company in Germany, which wanted to close the electronic production and the 3 guys in the age of 30 plus. They said, okay, let's give it a try. I think electronic manufacturing can still have a future in Germany. So they started with having business for a few weeks out of the previous company and then started to do the sales and the business development. Yes, you would say it's a start-up company without business angles, and they started with about 25 people and moved up to the year 2025 with around about 1,500 people, round about EUR 300 million revenue. I think it's [ SEK 3.3 billion ] and around about 80,000 square meters production and shop floor. And you see over the time, we opened up different facilities, different companies. I will explain a little bit more about it, what is our footprint now. So here we go. You can see BMK in Germany, our main production in Germany, we have in [indiscernible]. We have a plant, which is only for production in the Czech Republic. It's very new, great building. We just expanded it by another 2,000 square meters last year. There you can see our local for local entity in Israel. And here is another one in [indiscernible], which is doing after sales services, just to name the most biggest one. What are we doing? And what are we offering to our customers. Electronics and EMS sounds easy, and it's putting some parts on a green board, so-called PCB board, but we do much more and BMCs only delivering to industrial customers. We do not do any consumer goods, and we focus on the most complex electronic manufacturing because this is where we can make a difference for the customer and where we can help him to solve issues. Erik showed the toolbox about what Hanza is doing. I would like to have the same picture, but I try to do it like this. Customers can select whatever they want. We can do just a part of that. But for sure, we try to give him the whole portfolio, starting with the development. What means customers can come to us with the specification with the product idea and just say I need someone who does the development for the electronics or he comes because his capacity is very limited to find good engineers in Germany can be hard as the outsourcing of some parts of his engineering team to us. We can further go with the layouting, we can do industrialization work. So this is really if you come with a problem and we need to start in the very beginning. Our backbone, our core business is then the electronic manufacturing. So really just due to produce products. And there, we start with a very successful new business unit we founded 3 years ago for fast prototyping. Every engineer needs prototypes. He has a development cycle. He needs a few prototypes every now and then. So we said this is the best time to step in, not talking to the buyers, talking to the engineers sitting in the development department, and we opened also up our BMK [indiscernible] what is online shop where you can just upload his data, like you can do the configuration of a car and your car dealers' website and you get a pricing in order and this is perfectly for our business as an enabler to come into different markets and customer segments. Then supply chain management, very important. Like Andreas also said, it's getting more and more important, especially after the allocation, which out of the last few years in the newspapers. This can kill you, you can be as good as you want to, but if you don't have the parts to produce your lost, so this is what we are focusing on, and we invested a lot of time to think how we can help customers to at least minimize that risk. Then we have the assembly. We can do everything what you can imagine, as Erik said, just come by and visit us normally, I do that not in front of investors. I do that in front of customers. And for me, it's always to keep the presentation short and to bring them into the factory because we really can show them what we can do there. We have a big team for debt development. It's very important doing the tests through the whole production cycle to avoid that in the end, you invested EUR 500 and then the long time for production, and you have a failure in the electricity, which you could have avoided by testing, so that's getting more and more important, and we are promoting that to our customers. But this is also USP [indiscernible] we have because many other competitors do not have so much knowledge about testing all the different test as you can imagine. We also have cold chambers where you can put the electricity inside and we just pull it down and warm it up and do some stress test. So really cool and then a lot of things you can do there. Then we also heard from Andreas [indiscernible]. So our focus is not just going with PCBA, so with assembling parts to BCB. We want to do the whole product. And this is also the examples I brought to you. Testing, as I mentioned, racketizing also more and more important. Racketizing means everything you can do to make electronic robust for example, we produce for 1 of the main the biggest companies offering or large airbag systems. If you go free skiing, you have this airbag in your back, and this is now with electricity. And yes, you can imagine if you go up and you're lucky and you find some place you can go in and then have a cup of coffee, then you have a humidity going into the backpack and the electricity is getting red. So by painting it, by coating it, you can avoid that it is a trouble. So this is what we can do. And we have our aftersales service department. This is all you can imagine after the product is done and out in the market. If we need to repair something if we need to exchange some parts, we even do that for competitors they have built electronics. But in the end, they have a problem and they need some rework or whatever. Some years ago, we did the repair work for Nintendo in Germany. So everything you can imagine to repair instead of to throw away and to build new, we can offer with our service department. I brought some pictures so that you also can see some insights from BMK, and I wanted to just highlight a few of the USPs we have I need to make it short because it's a limited time, and I don't want to go into details about the technique. But just to pick out some, we have round about 30 engineers in this development department, which I mentioned, where we can do hardware and software development for customers. We are, I would say, the only at least German, maybe even Europe, EMS company offering any mix, any volume. You can see we go up from lot size 1,000 to 50,000 for production batches what is really unique because you need to handle that in the logistics and also from the setup of the machines. We have over 400,000 produced systems each month with a really high quality, which can go down to 5 ppm. So it's parts per million. This is really, really not that easy. We have 5 to 10 NPIs. So new products we introduced into our production every day. We have an in-house tool construction -- we have our own analysis laboratory. So 3, 4 years ago, whenever you have a defect and you need to make, for example, grinding a part and look what is inside or you cut the PCB and see the lamination. So is there any problem from the PCB supplier, you need to go to an external partner. You have 3 weeks waiting time. We said, no, it's not an option we build up our own laboratory, and now we offer that service to our customers. We have our own robotics team. You can see here a robot who is serving a tester. So this is the testing which I mentioned. You need to put the PCB inside, you close it, you press Start and then sometimes it runs 5 seconds, sometimes it's 25 seconds. And the operator needs to wait if you have a certain volume, you can automize it. It's very, very economic. And we do the whole construction layout in and then the setup of this robotic sales by ourselves. So just to mention a few of that, and we are not just good in technique. We are overall not so bad. So I wanted to show some awards. We've got in the last few years, like 1 of the best companies in Bavaria we have some resource efficiency prices, especially with this aftersales unit where we have -- so I think green don't throw away reuse it. We have a lot of supplier awards like here from IDS to 1 of our big customers. So this is really something we're also proud of because it shows that we do a good job in the daily business. Two examples. On the right side, you see from the company Kobus, it's a German company, and they produce industrial PC, which is based on the raspberry pie. They run into problems. They produced that in Germany, and they needed to think about, okay, either I invest a lot in building up a new production with new machines and so on or outsource. -- then they looked around and they found a few MS companies, they could outsource that. But then by accident, we met on a fair and we introduced BMK. They didn't know us so far because they never had EMS business going on. And then we said, "Oh, we can do that, but we cannot just do the PCBA, we do not just do the electronics, we will do everything, we will do the sourcing, we will do the production, and we will do the logistics." They have customers ordering 1 piece, 5, 10 piece or 1,000 pieces. And whenever they ordered online, they think they are -- but in the end, they ordered at BMC and Oxbord. And we do then the packaging. We do the logistics, and we put it in the package with a [indiscernible] tape around and we ship it out to the customer, and we can do everything out of [indiscernible]. You see a little bit about what is the services we do there. The supply chain, we have a lot of components, about 700 components. It's in total, 72 different variants. So we built up 1,000 from the base, and then we can do the individual variance after that and we take care of about 43 suppliers. So exactly what Hanza is doing with mechanics and electronics, we are doing here with the box build of electronics. Another example is [indiscernible] by the company Techno [indiscernible]. Some may know it. Especially in Germany, we are rid of snow. So we need a lot of snow guns. It's a cool company from the area of South Tyrol. And we started there, so we do not build a snow guns maybe it's a business case for the future, but so far, BMK was focusing on electronics. And yes, they asked us if we can start with the development. So what they need is some losses in the front of that snow gun where the water comes out. And they asked us if we can do the development of these losses and of this controller of the losses because it's really high rocket science. You need to have the right combination of different factors to have the perfect snowflake in the end. And therefore, the losses and controller is very, very important. So we did the development and the end we built these notes with about 30,000 pieces a year, ending up in great now for us to ski. So here, you can see some customers we have. We are not allowed to show all, but what you see is really that this customer base is out of every industry. There is some big global players. There are some midsized companies. There's a lot of hidden champions in there. And of different industry segments you can imagine. And I would say the good thing is, looking at the Hanza portfolio of customers after that merge, I think it was 2 or 3 customers where we both act. But all others, we can just put together now. So it's really not a lot of correlation. Okay. So why is BMK the right partner for Hanza. I would say, Erik, is the best 1 to explain, but we talked a lot, and we've also been together now visiting some of our customers to introduce Hanza in BMK. And I think it's really a great fit and especially in the current situation. So the German market, for sure, is 1 of the most important industrial markets you have, especially in Europe. For sure, we have some problems. And I think Germany has even more problems than other European countries. But I also see a little bit of an upside effect now starting 2026, and hopefully, it will continue, but everything changed. It will not be like it was 6 years ago. So the demand is becoming much more selective. And this ends up that really the technical capability the flexibility and also the way you look at customers has changed. It's much more selective now. But the good thing is that BMK gives Hanza really a strong local platform in that market. We have around 400 customers. We have around 150 customers where we really have key account partnership. The other customers. This is, for example, in the prototyping business or in the aftersales business. But we have many, many contexts. And maybe some of these customers, we have not delivered a lot of electronic products so far because they don't have the demand. They may have a huge opportunity and business potential to go there now with the Hanza portfolio. And this makes it really totally different. So together, we have best of electronics and the best manufacturing concept. And we have that, I would say, globally, but at least in Europe, that big footprint. And as Andrea said, this is really absolutely great for doing now cross-selling. We can go to all of our customers, and this is what we do now in the next month to introduce the portfolio we have as you go in to our customers, as you've seen, we really have some customers they are delivering globally maybe they look for someone who is in Sweden or whatever. So it's totally new, and this is really great for the German manufacturing industry, but also to support the German customers to be much more present and much more effective in Europe. Yes. And for sure, we will hear that later, but what we also do now is that we started to go into the defense market. In Germany, we have some, let's say, defense companies with a long history, but we also have many new startups, especially in Bavaria and this is what we already started some actions. And together with Hanza, it's great to expand in that business area, too. And then we heard that integration is very important. So for me, it was really -- as I think it was last year in summertime, I heard that we will merge together with another company and the reason why the 3 gentlemen, they do not have problems, but they just got older, and they said we want to have BMK continuing the business and we want that the MK at least stays with the values, and it stays as a company as it is. And this was my first question is [indiscernible], the CEO and owner told me about that. And I said, okay, is it a Chinese company? Is it some private equity company just squeezing out money. We need to look for a new position because this is not what I want to and then I read some articles about Hanza and I met the gentleman, and that's why I'm still here. So it's really a fit -- it was from the culture, from the targets, it was a fit. It was not a big Chinese EMS company, taking over BMK to have a depends in Germany. It's something together merging the best of electronics, it's the best manufacturing concept to make something big out of it. And yes, I think this is also the feeling our colleagues have. So the integration is really accordingly to the plan, which has started a few weeks ago, beginning of January, the closing was done. So we have a good team of a few managers and Lars and Erik there in Germany very frequently. So everything is on track. We work close together. And as you can see, the ambition is now to grow with the existing customer base, but especially in Germany, I would say, we do some cherry picking and then we also selectively at customers who fit to us. On the picture, you see this guy here, Hubert [indiscernible] he is the Bavarian Minister of Economic Affairs. We've been to him last week also to introduce the concept and to introduce what Hanza and BMK together is doing, also building up now the relationships into the politics to just be aware and also to have the network into that as a base to to grow in Germany. Okay. so far so good. I hope that gave you an impression about what we are doing and what plans we have. Now I invite you to have a coffee break about 15 minutes. What means at 5 after 2, we will meet again here and we continue. Thank you very much. [Break]

Okay. So welcome back. Now we will have the second part of this journey. And then we start with no less than Matthias, who is our manager of links program and more and has a background in the Army.

Close to.

Close to an old office.

Naval forces.

An officer and a gentleman. Please go ahead.

Thank you, Erik. And maybe as a second reflection, also reflecting on Hanza, reflecting on some of the words from Florida, 2 years ago, I was here presenting Orbit 1, who then was the latest acquisition. Two years later, we have made 3 more acquisitions and during that period, I have had 3 jobs basically, focusing on the mix, making sure that we do large supply chain integrations, then doing a couple of acquisitions and now taking care of the Lynx program. So what is the Lynx program? It's Hanza's defense initiative. It's how we refocus on the market. Hanza has been in the defense industry for more than 10 years. Please note that this is not something new. But like -- just like Erik mentioned that we like to do things in steps, we also like to focus and creating an initiative, a program like Lynx enables us to focus, which typically gives good results. So what's happening I mean we don't have to talk about the global political security stage. We know that it's chaos pretty much. From an industrial side, there is great funding available at the moment. More importantly, from whatever you call it, customer clients and market perspective, there is a great need and from a Hanza perspective, we talk a lot about this. This is not only business, this is not money. This is heart and sold. This is about contributing to the future of Europe and helping our comrades and colleagues in the Ukraine. And why is Hanza such a great recipe for the defense market. We focus on regional manufacturing. If you go back and look at most of the current defense giants, they have a regional manufacturing network. We can supply that. We are, as Andreas mentioned, vertically integrated. We have all the technologies needed. And if we don't have the right technologies, we go get that technology. We have dedicated operations. Currently, I would say we have 4 sites that are only focusing on the defense industry. If there's a need for more sites, then we will add more sites. And we have, through the acquisition of Melectia, we have offset capability, meaning we can help companies and countries to set up an operation to fulfill an offset obligation. On top of that, we have the traditional manufacturing company capabilities to help industrialize to help scale to provide compliance, good quality. And last but not least, we have the financial resources to do this. So I think to paint the picture on why we needed links, and why Hanza fits the picture so well, that's quite easy. So what have we done? 12 months ago, we also President Zelinski getting humiliated in the White House. That was actually the starting point of our Lynx journey. Erik called me, "Hey, didn't you have a connection in Finland, a good defense company, [indiscernible] that we ended up acquiring", was actually a part of the process when we acquired Liden. So we had quite good knowledge of these people. And it all ended up in the grand opening in October. So 6 months from decision until we have a fully integrated company within our company, focusing only on the defense industry. So the mission of Lynx Again, coming back to the heart and soul, Ukraine. That's a particular thing that we need to focus on, and we're doing our best, and I'll come back to that in a second. But the defense industry in Europe, helping Europe to build a strong industrial defense base. That's a significant portion of what we try to do. Of course, this needs to be done in line with, let's say, the market expectations. And this is a market that is changing. If you talk to the defense industry today, they will reflect on the past where they did a handful of products per month or in some cases per year. Now it's 10x that is the requirement. And they have the politicians stating that if you're not able to supply, I will go somewhere else. So we need to be there and help the defense. I was in Finland last week attending a defense seminar. And they all talked about the fact that currently, they're building the order book, and the next phase, which starts in 2027 is going to be about delivering the order book. And they didn't say it out loud, but you can read between the lines, they don't really know how to do this. They don't really know how to do this. So we need to help them. Of course, with the addition of Florian and his teammates in Germany. Now we can really focus on the German market. And the defense market in Germany is tremendous. But you need a strong footprint, a bridgehead as we used to save some 25 years ago to get into Germany. And now we have that [indiscernible]. Capabilities and technologies. We talked about that. If there's something that we're lacking, Andreas will go get it. So in the end, what we are aiming for is -- and it's not a secret that our 2 current stepping stones are sub and Patria. [indiscernible] enhance acquisition 10, 12 years ago, [indiscernible] to the acquisition of Elektra. Those are the stepping stones, but we are now actively looking to develop another 4, 5 more of those strategic partnerships, don't quote me on the number. But -- and I spoke to somebody during the break, this market is not about finding opportunities, it's about finding the right opportunities because this is probably the hottest market right now. And the selection for your future partnership is quite great, I would say. There's a lot of companies. And this is also something that is kind of adding a new flavor to to the traditional manufacturing industry. This is a market that is somehow saturated by partnerships and joint ventures. Everybody is somehow connected to everybody. which also put some new requirements on us as a manufacturing partner to these product owning companies. So where are we right now? What's the status as of today. So we have established quite a few, more than I expected, let's say, governmental and institutional contacts in the Ukraine, working on trying to find something that we can do for the Ukraine now not in 2027 or 2028, but next month. We have been to the Ukraine. It's a difficult market. There are so many companies and the manufacturing footprint is so diversified, but it's also very much based on basement kind of manufacturing. But could a company like Hanza go in and provide support and aid and help them industrialize and scale up, absolutely. But again, you need to find the right partner. Drones. Drones is probably the hottest thing that everybody should produce. We have a few active drone programs, both in this country and in the country south of us. So we are manufacturing drones, just like everybody else is announcing. There's quite a few more drone opportunities in the pipeline. Again, the amount of drone manufacturing companies is hundreds. How do you pick the right ones. That's the critical thing. We think we have picked the right ones. Existing defense customers. We talked about Saab and Patria. Tremendous collaboration, good partnership, good pipeline, we continue to develop. And now with the, let's say, the cross-selling and upselling that comes with buying a new company goes both ways. So whatever we did for Patria, with [indiscernible] we can now do for the rest of Hanza and vice versa. So continue to develop on that. There are a lot of joint ventures around Europe, and 1 of those is focusing on missile manufacturing. So we have a significant opportunity here. We have been able to get through the German market through the acquisition of BMK we have been able to get quite far into this. And hopefully, we can share some more information or at least you will see it in the numbers and coming back to the German market. Again, there are so many opportunities. It's not about finding one. It's about finding the right one. But I think with the bandwidth of BMK, the amount of feet on the ground, we will be quite successful in that region. So to try and summarize, it's a steadily but slowly growing market segment. This is not something that goes from tens to hundreds and thousands in a year or a month. It takes a couple of years. Reflecting on the market segment split that Andreas showed, we only have 8% today, but it's 8% of SEK 10 billion, meaning it's SEK 800 million. That puts us quite -- if you compare us to our colleagues in the business, you will find that we are quite far up even though the percentage is quite low. And it's also the segment that has an opportunity to really create a base for long-term growth. On the right side, we talked about cross-selling and up-selling. These are 3 milectria customers that are now customers of Hanza. And just looking at the profile of these, the upper 1 is an unmanned-guided vehicle. It's like a robot for delivery of food or ammunition or bringing out wounded soldiers from the battlefield. Reflecting on that product or the launch pad or launch vehicle, whatever you want to call it, for different types of drones or of course, the [indiscernible] 6x6, the armored personnel carrier, just reflecting on the capabilities that Hanza had looking at these end products. I mean, our goal in terms of upselling and cross-selling with these guys is quite significant. Thank you. And then I leave over to Andreas.

Thank you very much, Yes. So unfortunately, Diana couldn't be here today. So I will present this part. So we heard now a lot of our technology, about customers, about defense opportunities. But Erik mentioned something in his presentation that, that cannot be done without people. We have to have people going in the same direction led by good leaders so that we can walk in the same direction towards 1 common goal. And Mattias also mentioned here that you were here 2 years ago as Orbit One and now you are here as many other things that you are doing. And we have gotten many new colleagues in Hanza. So how do we do that? How do we integrate that? And how do we make them feel welcome and answer, but also us that were enhance,what can we learn from the ones that are coming in. But at some point, we need to get United. We need to work together in order for us to have this tremendous and good growth that we are trying to obtain. Again, So again what I talked about that we are continuing -- will continue to grow like this. This is in our DNA. For those of you who have followed us for a long time, you see that the growth of Hanza and what we are doing is we are on a constant move. So this is here and it's going to be here forever and we need to find a way to do that. We have also -- when we acquire companies, it's different cultures, it's different countries, it's different type of companies. And but there is a strong potential also if we can integrate this and when we have the diversity that will also make us strong. So what we say here, Hanza United that the next one is very important. We are a global company, but with the local heart. So what we think is that everything that we can decentralized we should do. Of course, there needs to be some kind of a framework as well, but we believe that it's better decisions are better made out there in the regions and the clusters that I talked about before rather than by us sitting some floors up here in [indiscernible]. But there must be some standardization where it makes sense, of course. And there is a framework, of course, cannot go out and buy companies or set companies out in the -- in the factories that is taken by us. But generally, the philosophy is that we should have the decisions out in the region. We have 5 value words that we are working with, and that is what is guiding us and that is what we are also talking to and living. And I think for those of you who have been around the factories, I think you can see that we are living those 5 value words that we are focused, talked about that focus of the Lynx initiative. We take ownership for what we do. We are easy. Manufacturing remain easy that is Hanza. So we are easy. We are a team player. We work together, and of course, we communicate. And again, about this with the communication is that we also feel that it's so important now to have the leaders communicating in a good way. when we have new colleagues coming in. And we have been some leaders in Hanza that we have been doing a communication leadership training for almost 2 years. So I think that is also a good thing that we communicate, and you know that. But communication is something that you don't do just once. You need to communicate and talk about things several times and maybe for the fifth for the seventh time when it really stuck into the head. Very important also with all the acquisitions that we are doing, I would say that we are. The only company that would do these HR diligence that we are saying that we are -- you see Diana here, she is the -- our responsible here. So CHRO and she is out there doing -- checking the company. So she went to BMK before the acquisition, looking Florian in his eye and say, "Yes, this looks good, and we have the same values, more or less and so on." And this is also what she is doing all the acquisitions that we are doing. We're going out there to feel that this is something that is something that really will fit in to answer besides that pays a good company from a technology point of view, from a customer point of view. And that is the first thing. Will it fit Hanza's business concept. And then it is both about the people that they need to fit as well into houses on. So very important that she is out personally to do these due diligence. And then also to invent it. Sometimes, it can be risk in red flags, but we may say that we go ahead anyways. But at least we know. And that means that the integration module is easier. We talk before what we want in this company, and we act as team players after the acquisition is made, and we start the integration. And here, we can see Lars also, our CFO, will talk soon. And this is in [indiscernible] during the Orbit One acquisition. And on the upper picture here, we can see Avi, the middle head of the factory in Israel, or the gateway in Israel. But important is now when we go out there and we do in the integration model, then we start to know when Erik now in Germany to make his own picture of how are the people there, what are good leaders, what is potential new leaders. And that is so important. You need to be on site to do that. And then to work together with the team that you have newly acquired so that they feel welcome, they feel positive to come into Hanza. This is a nice company to work on. And they also have many good things in these companies that we can run from. So that we also coming from Hanza don't say, this is the way we do it. That's the best way you need to listen because we are strong in together, right. And I think by having this mutual respect for each other, we can always improve. If we listen to each other, we respect each other, then we can improve. And here, you can see, we gather every year, the leaders in Hanza about 50, 60 people. I think now with -- and this was before BMK and now with BMK, maybe it will be up to 17, but let's see what it is. But this was -- last year in November, we gathered the people in the biggest factory that came with the [indiscernible] Group acquisition up in all [indiscernible], that up in Uleaboy really in northern art of Finland. And there we talk about things that is ongoing in hand, things that we will do in coming years, depending on where we are in the strategy period as well, by launching a new strategy for executing on a strategy. But it's very good as we together can meet all the leaders and we can talk. So it's also not just a monologue from Erik. All of us we speak and also we get people in and we have workshops and so on. So I think this is a very well -- people they like this and of course, the network not just the official meeting, but also to get together in the evening. But that is important because we want the handset culture. That is what it is. It's Hanza culture. We are not acquiring companies, and we are not having them individually. No, they are coming in and we are one Hanza. We have Hanza culture Hanza united and that's it. Those are the values we live and we live those. And then again, we need to have our leaders. Leaders need to be good. The leaders need to be feel empowered. The need to feel that they are here to be able to decide what is best and that is also the decentralization that I talked about and then communicate and communicate again and do it several times, repeat. Erik does that very well. He repeats the things. And I think that's good because we need to repeat now where we come from all the time because then we know where we are going as well. By that, Lars

Thank you, Andreas. Sound okay? Yes. You saw me on a few slides back doing the speed camera. So don't know how to blame if you get caught speeding. It's actually my fourth time. I will guide you through Hanza financials, starting with ESG. Then Hanza financial, the development with Hanza 2025 and coming into the new financial targets and late finally, a little bit about the shares. So I will try to guide you through what Andreas and also Matthias has promised investments. And if there's anything lacking within the defense sector, we go out and get it. So I will try to guide and say that we have quite good financials and we have the capability to finance the growth that we are planning for. Starting with the sustainability, the ESG. We are struggling right now quite heavily to get the CCRD reporting in place for the annual report. You heard Andreas talking about the HR side and that is together with the code conduct and the way we do business. That's sort of the DNA of Hanza. So it is not a major thing for us working with sustainability. And what we do is, of course, environmental climate issues, safety and safety is extremely important. This kind of business is and can be dangerous. So we have always direct information up to the top level management, if there are any accidents or incidents. And then employees as Andreas said, we were working a lot with getting the personnel, the employees to have the same atmosphere, the same spirit as we have in the top management. And the focus areas right now, integrate P&K, get them to work in the same way as we do announce [indiscernible] and also report the ESG KPIs accidents, I talked about, also corruption, keep it up to 0 level. We've been proud not having any major incidents about corruption and then continue to try to reduce the ESG KPIs that we measure and present in every quarter report. Coming into the financial development. I promised to present quite impressive growth during HANZA 2025 and as Erik mentioned, in 2022, when we started Hanza 2025, we were at SEK 3.5 billion. You can see the development on the graph to the right, and now coming into Hanza 2026 with SEK 10 billion turnover. And we have organic growth in 2025 was 3%. In Q4, it was up to 10%. So we see it increasing during the year. And including acquisitions, pro forma figures, we are on SEK 6.5 billion in sales for 2025. And then we -- as mentioned before, we closed the deal with BMK in January. And with BMK of approximately SEK 3 billion, a little bit more than SEK 3 billion, we on SEK 10 billion in sales starting in 2026. We have quite amazing growth. We have during Hanza 2025 20% growth annually. The profit, when we started, HANZA 2025, we were 6% EBITDA level. And we are entering into 2026 together with BMK of approximately 8%, just doing math of what we have presented BMK being on 7.3%. Hanza being on 8.3%, 3% to 8% margin. And remember, this 8% because coming back to the financial goals. We have also, during the period, we have increased earnings per share and that is also important. When we do acquisitions, we diluted the share. It's important to keep the profit per share to increase that and give the shareholders back a better return on their investment. And return on capital employed, also important to continue to increase. We are on [ 13.5 ]% in 2025. We were a little bit close to 11% 3 years ago. We have many times talked about the fact that other markets, what we have with separate the financial segments in other markets and main markets. And we have been discussing and saying for a long time that there's really no reason for other markets to have a lower margin than main markets, but it was like that for many, many years. And the main reason for having the difference in main markets and other markets, what's the maturity and the size of the clusters that Andreas has talked about. Now we have 5 quite good on clusters, and we see that during this period, actually other markets were a little bit higher than main markets in 2025. And we expect that to continue not to see any major difference between other markets and main markets. And I will come back to you because we will divide it into regions. But there is no real reason for having a lower margin in parts of [indiscernible] higher markets and other -- higher margins in other parts of Hanza and also between the quarters, we will see that different clusters, different segments will differ in profitability. And also in sales due to the fact that we also are selling between the clusters and between the segments. So don't focus too much on 1 quarter sales or results. Financial CapEx and net debt, extremely important in our business. We have a quite big need or balance sheet. We need stock, stock that we buy for the customers. It's not for us. It's for the customers that they buy stock. But we need to have control over CapEx. We need to have control over the working capital and the net debt. And I think we've been quite good in doing that. And also depreciation, we focus on EBITA when we would talk about profitability, not EBITDA. And the reason is that we have depreciation, that's a natural part of Hanza's P&L., and we have approximately 4% in depreciation and investments were 3.3% last year. But the main sort of message is that CapEx follows organic growth. Then we have a delay and from when we order the investments until we actually get them delivered. But you can see also on the right that we have decreased CapEx during the year. We had a really strong increase in 2023. We took decision on some investments and now we've been able to decrease the CapEx. And also, we have done really good acquisitions, not needing so much CapEx. So that's also something is strong with acquisition. Net debt, we are on 1.9x the EBITDA. We have set the goal to not be about 2.5x the net debt. And you can see during this Hanza 2025 period that we've been below this target. And if you look into the details of these figures, you can see that we've been quite good in doing acquisitions, being able to squeeze out working capital, repay the loans to the bank -- have the possibility to continue to invest, to continue to do acquisitions. And that is important for us as well to have control over the balance sheet and have the capability to continue to grow organically and grow by acquisitions. And we have working capital, which is approximately 15% of the sales in 2025. And net debt-to-equity ratio is 0.7. Looking into the financial development, starting with -- to the right, the old Hanza, so to say, the Hanza without acquisition, a quite strong development close to 10%, 9.9% in Q4 2025. We are -- in Q4, we were SEK 1.8 billion in turnover with 9% margin. If you take SEK 1.8 billion times 4, we are well above the SEK 6.5 billion, which was our financial goal for Hanza 2025. And coming back to these pro forma figures, including [indiscernible], the full year, including [indiscernible] for the full year, we reached SEK 6.5 billion with 8.3% margin. So we are entering into Hanza 2026 with a quite strong performance in the end of Hanza 2025 and fulfilling all the financial goals that we set up for Hanza 2025 that we actually also increased during the period. And looking into the down to the right, I actually started in Hanza back here, not really sort of believing if someone would have shown me this graph when I started in 2009. New financial targets. Again, we are right now on SEK 10 billion turnover with 8% margin. And we've increased the earnings from 6% to 8%. So we are coming into Hanza 2026 or starting the Hanza 2028 period with a SEK 10 billion and 8% margin. We are increasing the profitability target to 9%. We are at 8% right now and the sales up to SEK 14 billion in 2028. We keep the same way of measuring sales and profitability. There is pro forma figures. So whatever acquisition we might do in Hanza 2028 will be calculated for the full year. And the reason for having this quite aggressive financial targets is that we have a business model that proven to be good working well together with also what Matthias said about the defi sector growing. We expect, together with acquisition that we will be able to reach SEK 14 billion in turnover with a profitability of 9%. A few remarks. We are heavily the euro company now with most of the sales is in euro. If the currency rate of euro was is changing, the financial goals will be either easy to fulfill or hard to fulfill. So we are measuring it towards the EUR, SEK currency level that we have today approximately SEK 11 and I also already talked about the pro forma figures. Andreas presented new organization. And he said that we combine the clusters into regions. We also have a manager for the regions. So we will, starting from 2027 report according to the new organization to the 3 segments, the 2 regions. We will continue to have a fourth segment, which is group, what you call it, business development and services to what before. Now it's going to be business development. The reason for not starting already now with reporting in these regions is what also on the asset that we will keep BMK in Malectria as special projects during 2026. We will integrate it into other operations, some are during 2026. And then we, from first quarter 2027, we will report according to the new organization. The share development been very strong during Hanza 2027. And also what's positive, we can see quite good trading in the Hanza share. We have approximately 120,000 shares traded every day and EUR 647 million close deals every day. So it's also -- we see that it's easy or possible for investors to go out of the share as well, which is important to attract owners and trading. And the market cap, you say approximately SEK 10 billion and since 2023, we had close to 300% increase of the share price or return on investment. The [indiscernible] Florian showed pictures of the 3 owners of BMK. It was a share swap, a share deal with BMK. They are now owning 9% each. So they are #2, 3 and 4 on the shareholders list. The largest shareholders is still far [indiscernible], owning close to 17%. And then we have some financial institution, and we see that we attract more and more financial institutions over time. And also important, the management owns quite large at least for us of Hanza shares in our private economy. And by that, I'll leave over to Q&A.

So then let's stand up and be ready to answer all the questions. Now is the time to cope the difficult questions. questions is coming. I could have [indiscernible] maybe.

Thank you. So I'd like to ask a bit firstly on the recently announced end market split, which was much appreciated. Could you elaborate a bit on what growth levers you see here across the different end markets? Obviously, defense you spoke about, but across the remaining sort of divisions with electrification and such, that would be interesting.

So the growth from the different customer segments, that's what you'd like to see. But we haven't published that. We have said that the defense segment is the smallest segment. And then you have to remember that it's close to 0 from BMK. So it's larger from old Hanza that is the one with the highest potential now like Matthias was explaining. But in general, we see good growth from different companies inside each segment. So in electrification, we have a few drivers. We -- maybe it's better for you, Andreas, to...

Yes, we have -- I would say we have -- like you say, we have a couple of customers in every segment that we believe is going to grow. We are right now also in analyzing -- we just launched these segments. So we're analyzing besides the defense segment. We're analyzing what would the potential be? And we are also setting the targets. We have the SEK 14 billion there. We are also going to set the targets. What is the growth that we have -- that we see now on these segments. Of course, we have an idea as of now, but that is the work that is ongoing. But we see customers with good growth potential in every segment.

Right. Makes sense. And on BMK, as you mentioned, Erik, I mean, following some headwinds in the German economy in recent years, I take it that you have some spare capacity in production. Could you say anything in terms of kind of what that spare capacity could relate to? What sort of customer groups you would like to fill that with? Where is the potential there?

Maybe there's a question for you, Florian, what is the spare capacity?

So yes, as we have shown also some pictures, you saw the production facilities we have. And for us, we have 2 things to grow. We can either grow in space. If we have projects and customers want to outsource something we have enough space to grow. And we can rent new also whatever this is what we did and what we can do and we can also grow by going into a third shift on night shift or whatever. So this is not a problem. Also in Oxborg. So when you come and visit us, you see we have industrial zones, but there is enough space to grow. Defense is definitely something. And we have other customers areas which recover. And as I mentioned, we have no consumer goods, and this is what we want to avoid. We have no own products like Hanza. So we are absolutely depending on the customer and what we ask them is which problem can resolve. And the good thing is really that we see an overall recovery coming in this year, but it will be very slow. And electronics product also has, let's say, about 12 months before you see finally production going out of the stock.

Florian, if I would say that BMK is a change so that can cut down any 3, what would you say about that?

I know that for sure, I say it's true. We can do whatever you want. This is what we tell to our customers.

A final question, if I may. On margins, I mean you guide for at least 9%. As you mentioned, we saw close to 10% in Q4 now. While I think we understand that BMK might weigh a bit in the near term. Could you just longer term, kind of elaborate a bit on the trade-off between top line growth, margins should 1 view 9% is conservative or prudent, that will be interesting.

Thank you. I'll leave it to you.

I think, as I said, 8% is where we're coming. We're starting right now, increasing that by 1%, up to 9%, together with a quite aggressive target also net sales development. is a fair value. And what we also see is when we talk to customers, we have an expectation from the customers on where to be in profitability. And our belief is that 9% is okay, double-digit might be too high. That's sort of the reason for adding this together and then coming into 9%.

So some of your competitors are maybe a bit too high in put in mind.

You need a mic.

Just following up on that. I mean, should one view it as kind of buying for market share gains from competitors and which maybe are a bit more aggressive on pricing, to be honest.

They do their decision on where they want to be and what they think is doable. If they believe 10%, then they believe in 10%, we believe in 9%. So -- but what is important is in the end that we grow the net result and the profitability per share. If it is with 9% or 10% or 8% still the final result is what counts.

I had a question on the implied growth rate here going forward over the next 3 years. if you could provide a rough breakdown of organic versus M&A? And then also on the organic side, increased volumes from existing customers and -- or versus new customers onboarding at Hanza.

We have not given that split. We have said historically, we've grown both organically and by acquisition, and we also believe that acquisition is feeding the organic growth because we don't buy a company to be big, but to be better. So when we add new competence, it's also easier to grow organically before the BMK acquisition were about 50-50 historically, but we haven't given any split moving forward. And on existing versus new customers? No guidance there as well.

That's fair. Thank you.

But I can comment because we say that, that was what Andrea was stating that we do believe in business development rather than sales, meaning that we believe they have a very strong customer portfolio and upselling and cross-selling that Matias was talking about is a very important part. So expect also to grow with existing customer base.

And a question maybe for Florian and Lars as well. The working capital situation at BMK versus the sort of the current level at at Hanza. Is there any large differences there? Or any synergies expected?

We haven't disclosed the balance sheet of BMK yet. We will do that with the purchase price allocation in the annual report, so you will see it there. And there is a difference in Germany towards the rest of Hana that they are not using the supply depths as much as we do in the rest of Hanza. To have this way of paying early and you get some discount. So that's something that we definitely will work on trying to get into normal supplier debt. But we also see both on the cost side being a bigger sourcing, bigger sourcing power. But we have historically been good in reducing the working capital I will not promise that we can do that in BMK, but that's definitely the goal.

Thank you for a few solid presentations there as well. I was wondering if you could spend a minute on the major obstacles for entering the Defense segment with BMK now coming in as a potential new supplier here.

I would say the biggest challenge in the Defense segment is the, as mentioned, -- they are going from tens and maybe, in some cases, hundreds to thousands and tens of thousands of the same product. So it's moving a whole industry from craftsmanship to industrial manufacturing. That's the main challenge. And coming from the EMS industry being used to working with forecasting, purchase orders, deliveries, the defense industry is more like we give you -- we allocate a frame order. We developed a product in parallel. Orders will come as soon as the product is mature enough, and we are ready to ramp up. So market maturity, I would say, is the biggest challenge we have. And that, of course, that level of maturity is different if you're in Sweden or if you're in Germany or if you're in Finland.

All right. I get that -- and you've previously said that BMK also has an extremely efficient productions with PPM under 5. What is the major success factor here? Is it the large per plant? Or is it anything else that you might be able to cut into Hanza.

So yes, as I said, it's depending a little bit on the products. But in the end, it's all about as an EMS company to really have a lot of experience to have the best-in-class machines to have experience people and to have that NPI processes. So this new product introduction. And this is what we are focusing on. And then it depends for sure if you have a product running 50,000 pieces a month or if we have one, which is just running 500 pieces a month and about the complexity of its board, but it's all about quality, and this is what we have been focusing on. So that's why we are so to say, we are not the cheapest ones, but we are the best ones. And customers visit us and they see our whole quality team, the process we have installed how we run up a production, how we prepare our production, what focus we take on the tools we use for the production. And this all together ensures that best-in-class quality and this is what the customers want to have. And for sure, we already started to work together with Hanza. We have exchanges people from Hanza plants come to Augsburg and the other way around to make workshops, and this will end up to be in best practices. We can add to that. We have just this week, we have people from Arjang -- in the factory in Arjang. You know that one, yes. And also in -- from Ranbir,so they are in Oxburg this week. And of course, like I said during my presentation as well, that we are going to not just impose what we do in Hanza. We're, of course, learning from what is good in the companies that we're acquiring. And this is typically 1 thing that we will see what they are doing and how can we move that into the Hanza factories.

Are there any specific levers that you might be able to pull?

So what was the question?

Can -- are there any specific measures here that you can take?

Yes, the measures -- I think the measures we can take, I think that is something that we are going to work on and the benchmark and to be -- and now we are in that space, more of the analysis phase, where we are visiting each other and getting a good understanding and from that one, we are going to work with that. And of course, 1 of the goals that we have with the factories is the quality. We have the delivery precision. We have the quality, of course, as operational targets, and that is something that we are to work together, and we are following it up in my team on a monthly basis as well.

And maybe also mention that this is what you've done also on the mechanic side with the [indiscernible] and [indiscernible].

Exactly. So we are doing -- we are creating forums. We have a forum electronics forum, where we have all the factories within -- that are producing the electronics. We have the factories producing the sheet metal, the one a couple of millimeters in all lines and in Tartu and in Turks force, the big ones. They are collaborating. They are working. They are doing benchmarks. And by that, something good will happen, continuous improvements and we are starting it up also for machining. So we have those forums in order to get the collaboration between the factors in an organized way.

Yes. All right. And just 1 last question from my end. It would be great if you could tell us anything about the backlog for BMK. Last, you said SEK 300 million. And will you be able to defend that based on the current market situation and I know you don't like this question, Erik, but perhaps you can say something.

So this but we started at EUR 300 million level and then we go upwards.

One question. There was, I guess, a bit of speculation heading into today that you might be launching a new market, perhaps North America or India, large and top markets. you didn't today. Could you maybe talk a bit about how you see those markets?

Yes, we have gone the other way. We believe in manufacturing in Europe for Europe. We see there is a big need for that, and that's where we would like to be in this phase. So yes, it's true. It could have been a geographic expansion due to geopolitics, it was not. We decided to stay in Europe and further develop our operations here. But there will be a next phase also if you come again in 3 years. Maybe there will be a geographic expansion.

And could you maybe just say something about your exposure to North America? -- how big share of sales has started.

It's -- we have said this is a minor part because we believe in local manufacturing to produce locally and not shipping so much abroad. And that also means that should we take market shares in the U.S., we need to be present there.

And finally, maybe on the Lynx pipeline, large orders. The last one I've seen is the drone order from last autumn. Yes, any comments on that?

We are working with the pipeline like everybody else. And as soon as we can communicate something in terms of realization, we will do so.

I could ask a final one since we have time. On BMK, I mean, given that it's a single, very large site, mainly in terms of kind of adapting this to your cluster model, I know you're spending a lot of time there, but what's kind of the main aspects you're focusing on, the main potential bottlenecks in terms of kind of transitioning BMK to [indiscernible] the cluster model that you have elsewhere?

So that's exactly Hanza 2028 to grow it into a cluster. And I think we have given the directions, but we will not give any details Andreas, would you add something? How we will do this? How much can we say?

No. But I can say that we have, of course, respect -- and that's, I think, to answer your question as well. We have respect of the size of BMK and not just okay from day after acquisition, we put it into the current structure, and we just do something else. It is so important that we get that in a good way so that we are not destroying the good company that BMK is today. I'm not saying that we're going to destroy it, but it can easily be [indiscernible] that we can lose talent, we can lose people that are very important in this integration. And as I showed here, it's very much in to do it slowly, identify the leaders, the leaders in BMK that will then also drive the integration in a good way with Hanza. So I think the way that we have chosen to do this now, we're having a special project run it separately. We will find out more and learn more about the company. And by that, we can put it in in Hanza in a structured can and controlled way. Floren, I don't know if you would like to add something.

I can add something from, let's say, elect protective because Minetta is a similar case even though we are significantly smaller. The market does not want the defense industry to consume all the capacity. So we listen to that and we have special factories. To enable focus on those special traits, we agreed to run it as a separate initiative for 1 year or or whatever it takes. So it's all about listening to the market. I think that's a key message here.

Very good. Thank you. Okay. Let's read on post from the webcast chat. We have gotten some questions. Some of them are already -- might have been already covered in your answers, but I will read them for you. First, from a shareholder -- as shareholders, we would like to understand Hanza strategic road map regarding next-generation manufacturing technologies, specifically specifically IA, automation and robotics. What concrete investments are planned over what time frame? And how will these initiatives impact competitiveness and long-term value creation.

Very valid question, and we spend a lot of time on that. Andreas, what can you reveal.

What I can say is just a bit repeating on what I said at the time during my presentation, it is, of course, extremely important in automation and robotization. And I think if you go to Hanza factory today, you will see that we have come very far when it comes to automation and robotization. And this is what we're going to leverage and take on the next step. I know in BMK you also are very far when it comes to automation in your production. So I think that combining these 2 and work with that. And we also have a forum with automation, how can we improve automation in Hanza. But that's also part of the program that we're going to do during these years now, 2028. So where we are, and I would say I would evaluate that we are in a good position where we are today. But together now, we are going to move it into even better position. AI, I think that AI is we need to be careful not that, that becomes a buzzword. So what is AI? AI is something, but we need to see what are the concrete cases and what are the concrete use cases that we can apply AI on so that we are not getting the just an AI like that. We need to identify what is the problem that we would like to solve and how do we solve it today? Have we solved it is a lot of manual hours that cost a lot. And that is what we're going to apply AI on, not just the other way around. We have AI and what can we do.

Thank you. And -- here is the next one, a long one. So the next phase, it's about ad technologies to the existing clusters. Does it mean that the big M&A period is over and that the next future 2028 investments will be coming via CapEx expansions, machine robots. Will there not be any other cluster creation in a different geography, U.S.A., South America, would it be possible that the gateways become future clusters with ad acquisitions or expansions. Thanks a lot for the presentation. Please let me know if I should repeat some of that ...

A lot of questions. But first of all, we will not add geographies. Secondly, we will not build classes out of the gateways. We will still evaluate acquisition depending on what is best. So make or buy. Some of the technologies take a very long time to create the competence. Some of the technologies is easy for us to implement, so that's a trade-off that you are working with if we should buy a company or if you do it organically. And again, to repeat on that one, that the clusters, there is no strategy that they should look exactly the same. -- the classes they are there to serve the customers that they have in the clusters and then we should have the best setup of technologies in that cluster for the customers we have there. And if there is a new customer potential that could come in. I also mentioned here that we are prepared to set up tailored solution to produce those at a tailored sites to produce for those, but always with the return on investment thinking.

I think there was a question about CapEx. And CapEx, as I said, it's natural part, a normal part of our ongoing business. So we need to invest in both new buildings and new machines to replace old machines but also to invest in robotization optimizations, and that will continue as well.

Thanks. Next one about customers. How much lower costs and potentially lower net working capital can you promise to customers, in general, if they consolidate their supply chain to a what does prevent or hinder customers to change more traditional setup to Hanza's consolidated model.

Would you give a number, Lars?

No. But what we know is reducing the number of suppliers, having a more secure supply chain, of course, releases the need of stock and working capital for the customer. that one, we can really show the customers when we negotiate and discuss with them. I cannot give any numbers, of course.

So I think the key talent in consolidating or rewiring a supply chain is to find the ample type to focus together with a product owning company. because typically, markets evolve and move in such a pace that it's difficult to take that time and really step back and look at your current supply chain and then work together to figure out the most optimal supply chain. We can improve in convincing the customer that they need to do this, but I would also challenge some product opening companies and say, "Hey, maybe sometimes we need to listen a bit as well and not only push forward forward." You can do things better if you do it in a different way.

Good. And one last question so far. What is optimal size of manufacturing cluster in your thinking?

Optimally, it cannot be too big. It can only be too small. And we found out and Lars talked about this as about EUR 100 million or 700 people, that's the size we like to have to be efficient. But then we can continue to grow and add technologies, there's no upper limit.

Thank you. That's all questions from the chat.

Okay. If there are no more questions, maybe I could end the day by just highlighting a few of our key messages. So we talked about our business model that we consolidate suppliers, and that's been highly appreciated by the market. We talked about our execution model that we build step by step. And right now, today, we launched Hanza 2028. We talked about how important it is to design a customer base. The customer base consisting of leading companies or different industries and that we now also will aim to increase the part of defense. We talked about people and culture, extremely important for us to make sure that the companies we bring into Hanza are process with a [indiscernible] dividends, that we keep a culture so we can exchange people between the factories between the clusters and we talked about how important it is to be transparent to not only give you numbers, but also talk about our strategy, our plans and also invite you to our factories. That's really important. And by that, thank you so much for joining us today, both in the room and online, and I hope you learned a little bit more about Hanza today. Thank you.