Relais Group Oyj ($RELAIS)

Good afternoon, everyone, and welcome to Relais Group's Capital Markets Day. My name is Tara Anttila, and I will be your moderator today. It is my pleasure to welcome all of you here on site as well as everyone online. During this afternoon, you will hear more about Relais' strategy, business areas and financial performance before we conclude with a joint Q&A session. Joining us from Relais Group today are -- let me just find the pages and faces. So joining us from Relais Group today are President and CEO, Christian Gebauer; as well as the business area heads, Juan Garcia, Jan Popov and Johan Carlos; and CFO, Thomas Ekstrom; and Director of M&A, Sebastian Seppänen. During the webcast, you can submit questions via the chat function and we may also take questions from the audience here in the room. We will address as many questions as possible during the Q&A session after the presentations. But now it is my pleasure to introduce Relais Group's President and CEO, Christian Gebauer, who will open today's presentations with an overview of the company's strategy and investment case. Christian, the floor is yours.

Thank you so much, Tara, for that kind introduction, and very welcome to the first ever Relais Group Capital Markets Day. We are very happy to see all of you here with us in this studio in Helsinki. But also to all of you joining us online today, it's an impressive participation, and we are really happy about that. I also hope that you like our new brand image. We have updated the web page and the logo, and we think this significant shows the way forward for Relais Group. So we are now entering the era of returns. We have, in the last years, had the era of EBITA growth. We have had a very strong growth of EBITA in the group. We are now entering the era of returns. We are adding the return on capital employed to our financial targets to make sure that the EBITA that we are creating is converting into shareholder value. We will touch upon 4 questions today in this first session. We will tell you what we view, what is Relais Group. Why are our niche attractive? Why is the vehicle aftermarket an attractive place to play for a serial acquirer like Relais Group? How are we going to turn the growth into returns? And what is the next phase we are entering into? So Relais Group is a leading European serial acquirer in the vehicle aftermarket. Our business is about identifying, acquiring and developing leading niche businesses within the vehicle aftermarket. This is done through 3 cornerstones. We focus on local entrepreneurship. We want the local management teams to have the mandate and the possibilities to develop and steal their business, but with clear accountability for the returns that they are creating. We also have a strong focus on M&A, a disciplined M&A, making sure that we allocate capital to the most interesting opportunities in our market to make sure that we create a good return for our shareholders. And then finally, about the disciplined capital allocation, it comes both in the acquisition phase, but also in the lifetime when we own the companies, we want to make sure that we deploy the capital that we have in the group into the most exciting opportunities. It can be that we are reshuffling capital from one company to another company or it can be that we take away capital from some product groups in one company and put it into other product groups in the same company, but always with a mindset of where do we get best return with the capital at hand. Over the past years, Relais Group has been building an impressive portfolio of leading companies. We are today active in 8 different countries. We moved outside of the Nordics last year through the acquisition of MAR Group. We are more than 1,700 professionals in the group. As communicated earlier this year, we are dividing our business into 3 areas. We have the commercial vehicle services. There, we have our companies where everything is about keeping the vehicles on the road, making sure we have uptime on our customers' vehicles. Here, we have leading chains like Raskone in Finland, Team in Sweden and Team Verkstad in Norway. Then we have products and solutions. In the Products & Solutions business area, it's all about creating leading brands and distributing products globally. This business area have, for example, Strands Group in the portfolio, where Johan Carlos, the CEO of Strands Group and the business area Head for Products & Solutions later on will share more about this business area. And I should also mention that Jan Popov, of course, will share more about the Commercial Vehicle Services business area. Finally, the technical wholesale, led by Juan Garcia, our Head of that business area. Here, we have companies that are focusing on availability, having the right solutions in place for our customers to get quick deliveries, but at the same time, making sure that we don't have too much inventory in our company. So it's really an optimization game to make sure that we get the most out of the capital that we allocate into these companies. We talk about local niche leaders. We want to have, we want to acquire, we want to build a group of niche leaders. This is important because throughout my career, I've seen that being a leader in a market or in a certain geographical area or in a certain amount of product groups, you are able to attract the best people. I mean all of you are working for a company because you think that company is leading in the area where you are focusing on. We will be able to attract the best people. They will help us create superior customer value. By doing that, we will become the preferred partner for our customers and eventually, we will earn leading margins. We already have several of these companies in our group today. For example, Strands in the premium Lightning, Raskone, we talked about in Sweden. Some of our companies are not yet in this position, but we have a clear path to get these companies to a leading position. And when we look at acquisitions, these are the type of companies that we are looking for. We are coming from several years of strong EBITA growth. And as reported last week in the Q1, we are having an impressive growth, both on net sales and adjusted EBITA with over 40%. And we are proud to show also a significant amount of organic growth, both in net sales and especially in adjusted EBITA. The cash flow from operations is and has been strong for Relais Group during the years. We are looking today at a return on working capital of 42.5% and return on capital employed on 11.1%. As you have noticed, we have put a new target of return on capital employed of 13%. That is the first step to improve the returns of our capital and return for our shareholders. We love the vehicle aftermarket. It is a niche that is resilient and fragmented. We don't think we can find a better place to deploy capital and build company groups than this niche. Our business basically starts from when a vehicle is constructed and handed over to the first customer during the lifetime of the vehicle until it's time to -- for demolition or end of life of the vehicle. In that span, we operate. In that value chain, we create value. So fragmented markets. As you know, there are many small, medium-sized companies across the Nordics and especially in Europe, if you look beyond the Nordic countries that are built by strong entrepreneurs and that are eventually looking for a new home. And then we think we are the best player to attract and continue to develop such companies. The resilient demand goes both in good times and bad times. We see that the fleets on our roads are aging. There is more and more need for services and material to these vehicles. And even in a challenging geopolitical situation, the demand for our services are increasing. So combining the fragmented market and the resilient demand, it is an attractive niche to continue to deploy capital within. So we are entering the era of returns. So let me make concrete example of what we mean with this. So we are working with trucks, right? So let's say, I'm running my truck on a highway with a speed of 80 kilometers an hour. Depending on how this truck is configured, how the engine is optimized, how all the vehicle is, you will have a different fuel consumption to keep the speed of 80. And this fuel consumption can be seen as the return on capital employed. Now we want to increase the speed. We want to go -- we have NOK 38 million last year in EBITDA. We want to increase this. We want to have double-digit EBITDA growth, but we don't want to increase the fuel consumption in the same way. We want to reduce the fuel consumption so that the cash at hand can be used to acquire companies and develop our existing companies, so to have a higher growth with a less need for capital employed. And by doing that, we will improve our return on capital employed. Our value creation model spans from when we buy a company to the development of the company and the reallocation of capital. So for us, as important as buying the right companies, it is to step away from the opportunities that are not right for us when the valuation goes too high and we don't feel it's a strategic fit for us. We don't feel that we can add as an owner to the company, we shouldn't do that. But to be able to be selective, we need to have a high flow of acquisition opportunities. And that's why we are now introducing the business area by business area deal pipelines where the business area heads are working actively with their companies to make sure that we screen, identify, think about this in our daily work, what companies could fit in our environment, who do we want to acquire, who are the leading ones. So we get up a good deal flow from the business areas as well as working on structural processes that is coming from outside. And then together, we will have good opportunities and do good acquisitions. Once we acquired the company, the job starts. So we acquired them because they have had a good development because they have showed attractive financials. We want the companies, of course, to continue the organic growth after the acquisition. We want to buy companies with management teams and entrepreneurs that are motivated to continue the journey. We should have focus on organic growth to be able to realize a high return on the capital that we deploy. The business area heads will tell you more about that, how we operate with this in different business areas. We have our playbooks by business area. We have our playbook centrally, how we want to work with value creation, and this is central in our model. Then the reallocation of capital, we talked about it. We take away cash from the companies that don't deliver high enough return, and we put it into opportunities. It can be acquisitions or it can be organic opportunities in another country -- company in the group. Being successful on this journey requires a strong culture in the group. We need to enforce and emphasize and build this culture over time. And these are the pillars of our culture. So we have local entrepreneurship. It goes with the situation where we want to acquire a company and we want the local management team to continue to drive the value creation and the EBITA growth. The local management teams are the ones closest to the customers. They know what the market wants. They know what the competitors are doing. They can take the decisions and are best suited to take the daily decisions on how to develop their business. But that comes with accountability. If you are deciding yourself what to do, you also are accountable for the results, right? So this is a fundamental pillar in our model. And we need the management teams that want to take this responsibility and that we think we have in our companies today. Commercial sharpness is the daily business of our companies, making sure that we work with pricing, the mix of product assortment that we are doing what we can day by day to drive profit growth and EBITA development in our businesses. For us, cash flow is like a religion. We are thinking about cash flow in everything we do, whether being about driving an agreement with a customer or a supplier, about how we run our companies with inventory levels. Cash flow is critical and will remain critical to be able to get the efficient usage of the cash and continue to grow by acquisitions and organic investments. And then speed and simplicity. The risk in a company like ours when we are growing is that we are also growing the bureaucracy, the administration, it gets heavy to work in our system. This we cannot allow. That means we will reduce the bureaucracy. We will free up time for the management teams to focus on what creates value for their customers, what creates value for the shareholders. And we will have easy processes, good systems, use AI to make sure that we are focusing on the right things. So we are now entering into the new era of Relais Group. We are entering into the era of shareholder return. We have been delivering an impressive EBITA growth during the last years. The fuel consumption has been quite stable, right, coming in at 11.1% in the first quarter of 2026. This is now going to increase. That's why we have put a financial target on return on capital employed to balance the growth, making sure that the quality of growth is high. So why do return on capital employed matters? I think all of you know this, and we talked about the fuel consumption, but it's actually about -- we don't want to grow EBITA for the sake of growing EBITA. That doesn't create shareholder value. It only creates shareholder value if the returns are high enough. First of all, the returns have to be above the cost of capital for the group. But the bigger the delta between cost of capital and return on capital employed is the more value we will create for our shareholders. This will be done through focus on organic profit growth in our companies, focusing on allocating capital right, focusing on finding the right acquisition opportunities that have attractive parameters. So there are also some things that we will do more and some things we might do less. So what we are reinforcing in the group is the clear EBITA growth and return on operating net working capital targets at each group company. So all our local MDs today have a target on EBITA growth and return on operating net working capital on their KPI card on the top. And when we are talking with the companies monthly, following up the performance, we focus on EBITA growth and return on operating net working capital. And once -- if we have any deviations, we like to have deviations where we are doing better than our targets, but should we have any situation where we are not reaching our target, we are quick on taking actions. The business area heads are very close to the companies, taking the actions required to get back on track. So we have also clarified that organic growth is essential for us to deliver the best possible returns. We have gone through what should the responsibilities be on the group, what should sit in the BA, what should sit in the companies, making sure that it's clear who is responsible for what. And for me, it's clear that the group are responsible for acting as a catalyst and an enabler for the local management teams to create value. I talked about the M&A. So we have a strong M&A process, and we have Sebastian, who is working on M&A at the group level. We have had a lot of processes coming into us from banks and people that are working with selling companies. For us to reach to the right return levels, for us to really get the benefit of being present in the vehicle aftermarket, knowing what's going on, knowing the great companies, we have to use that advantage to increase the flow from bottom-up about acquisition opportunities. And this we are now introducing in each business area to make sure that we get enough opportunities that we are identifying the companies earlier than a private equity would be able to do because we are in the business. We have built relationships. And when they are ready to sell, we are the preferred home. And that leads me to the next page. And we understand that we have to be a good place for entrepreneurs to come. If they join us, they will join a group of niche leaders. If you are a good football player, I'm sure you want to play with Real Madrid or Barcelona or Manchester United. If you are a good company and the entrepreneur in the vehicle aftermarket, you want to come to Relais because then you will play with the stars. They get the freedom to continue running their business in the way they have done it before. We are promising a simple and pragmatic way of working, even though we are listed, it shouldn't burden the companies to lose focus on the value creation. They keep the local brand and the culture that has been creating the value before acquisition. We are very active in our ownership. So we work closely with the management teams. We put the right boards in place. We have MD days. Next week, we have MD Day where we collect, gather all our MDs across the group. We are making sure that we give the companies the best possible conditions to succeed and reach their full potential. We only ask for one thing from our companies. Please continue the profitable growth that you have been doing so far, and please be careful with the capital that you deploy. We have been working a lot in the Nordics up to today. We have been acquiring many great companies across the Nordics in the 3 business areas. Last year, we did the first acquisition outside of kind of the Nordics and Baltics in Benelux with Matro Group. If you look at the size of the market outside of the Nordics, we've taken Finland here as the kind of 0 place or the baseline and then look into the other markets across Europe, how big are they? And as you see, we have huge markets across Europe. For us, going to another geography for the sake of doing it doesn't make sense. It doesn't create any value. But like Matro Group, we are open for opportunities when we identify a company in a certain market. We are ready to do the acquisition if the fit is right and if we feel that we are the right owner and it can add value to our ecosystem and to the group. Our financial targets released this morning. We are continuing on our strong EBITA growth. We now put a target of double-digit EBITA growth rate. We are going to focus as well on the returns to make sure that the EBITA that we are delivering and growing with are of good quality. We put 30% as the first target to reach. With regards to the dividend policy, we say that 30% of fully diluted EPS is our dividend policy. So during the coming years, we will work a bit parallel in these steps, but it's about building the foundation, building a strong floor, a strong foundation for the further growth of the group. It is about improving quality of growth, improving quality of earnings by improving the return components. And then it's about scaling the model with a solid base, with the processes and culture in place, the sky is the limit. Finally, if you are investing in Relais Group, you get allocation to a decentralized platform of local niche leaders. We are operating in an attractive market. It's fragmented. It has a resilient demand. We are working with a proven model for value creation. We are fine-tuning it now to make sure that we get even more returns out of our growth model. And that is the next phase, the era of shareholder return. Thank you.

Yes. Thank you, Christian. Thanks for the introduction to Relais' strategy and investment case. We will see you back on stage for closing remarks and the Q&A. I thank you -- thanks for this point. But now we are moving on to our first business area presentation. Please welcome Juan Garcia, who will speak about Technical Wholesale. Juan, the floor is yours.

Good afternoon, all of you. I have been in the automotive industry for more than 30 years. Over the years, I have had several CEO positions. And today, I'm proud to be responsible for our great business area, technical wholesale, which I would like to shortly present for you today. We are a group of 15 specialized companies focused on the automotive aftermarket, serving both commercial vehicles and passenger cars. Across the group, we have strong industry expertise and serve customers throughout the value chain from vehicle customization, workshop equipment to spare parts and accessories. Just to give you a few examples of the companies in the group, we have a company called which are specialized in fleet customization for applications such as service vans and airport vehicles. Another example of our companies is sell Tuna Dar HDD, which focuses on spare parts for trucks, trailers and buses, segments where uptime is absolutely critical. In businesses like ours, data is becoming increasingly important. We have, therefore, started to combine a large amount of proprietary data with AI-based tools to support smarter decision-making and create even stronger customer offerings. Several of the founders of the acquired companies are still active in the businesses today. And we are a trusted long-term home for entrepreneur-led companies. This makes us stable and predictable as well as a cash generating in the whole group. Our running 12 months net sales is around EUR 260 million, and the EBITDA percentage is almost 11%. However, our aim is still to increase EBITDA percentage. We operate mainly within automotive aftermarket with a focus on on-road vehicles. As long as goods and people needs to move, we believe the market will remain stable with limited seasonal fluctuations. Vehicles are becoming more and more advanced, both technically and digitally, which favor our specialized companies like our companies with deep expertise in their own respective niches. At the same time, the demand for uptime and operational reliability continues to grow. Our offering is evolving beyond product alone to include co-developed technical solutions tailored for our customer needs. I do get a lot of questions regarding EVs, electrical vehicles. And my answer is that electrification creates new opportunities for us, and we follow and adapt to the development. At the same time, we can also see a growing interest in alternative drivelines such as hydrogen, and we will continue to prepare for future technologies and changing customer needs. But the vehicle fleet changes slowly, and the average today is more than 10 years of the vehicles. Electrification has also progressed further in passenger cars compared to commercial vehicles, while city buses are currently leading the transition very much due to the predictable pattern. We see electrification and new vehicles as an opportunity. Many companies, components and systems are becoming more advanced, more expensive and subject to higher wear due to higher weight from the batteries. This increases the importance of technical competence, service and special solutions, and these are areas where we are well positioned. Our strategic priorities are centered around disciplined profitable growth and long-term value creation. We see significant potential to further improve profitability through operational excellence by sharing best practice, utilizing our combined purchasing power and our deep industry technical competencies that we have in the companies. We will continue to grow organically by expanded assortments. However, for all new expansions will be evaluated by a kind of ROONWC KPI to ensure that the capital is allocated in the most value-creating way. Finally, we will continue to pursue selective acquisitions of companies with strong local or niche market positions where it is a clear strategic and operational fit for us. To summarize, we see a clear path to continued EBITDA growth and improved capital efficiency. Through category expansion, private brands, which is very interesting, operational excellence and stricter working capital discipline, we believe there is a significant potential to further strengthen both profitability and returns. Combined with our strong market position, technical expertise and decentralized entrepreneurial culture, we are well positioned to continue creating long-term values. Thank you so much for showing interest in the business area of Technical Wholesale.

Thank you, Juan. Next, we will continue with another business area presentation. And at this point, I would like to welcome Jan Popov, who will present Commercial Vehicle Services. Jan, please.

Good afternoon and also a warm welcome on my behalf. I joined Raskone in 2018 and following the acquisition by Relais, I have had the opportunity to help build and develop commercial vehicle services platform across the Nordics. And today, I want to give you a better understanding on the attractiveness of our market as well as our market positioning. At the core, our business is not about spare parts, workshops or maintenance hours. We are selling uptime. Our customers operate mission-critical assets, trucks, trailers, buses, vans and industrial equipment that generate revenue only when they are moving and operating safely. Road transportation is the backbone of a well-functioning country. Every hour of downtime has real economic cost for our clients, missed deliveries, idle drivers, utilization losses and contractual penalties. So that's why our value position is much broader than just repair and maintenance. We help customers maximize availability, improve safety and reduce total life cycle cost. Now what makes this attractive is that these needs are noncyclical and operationally critical. Fleets still need maintenance regardless of the economic environment because vehicles must stay compliant, safe and operational at all times. And importantly, customers increasingly prefer partners who can support their -- support multiple brands and different kind of vehicles across broad geographic footprint. Scale, network coverage and technical capability matter more every year. That positions us well in a fragmented market where reliability and responsiveness are becoming key competitive differentiators. So as I said, scale and coverage matter increasingly in the market. Today, we operate across 3 Nordic countries. We have over 60 service locations, and we have approximately 1,100 employees. Our network is supported by strong OEM authorizations across key truck and trailer brands, which is strategically important in deserving large professional fleets. Our customers want increasingly reliable service partners that can support them consistently across different regions, vehicle brands and equipment types. This is where our platform stands out. Importantly, our independent multi-brand model reflects the reality of our customer needs. Most operators run mixed fleets, and they increasingly value partners who can support all major brands and different kind of vehicles through one relationship and one network. The market itself also remains fragmented, which creates attractive opportunities for scaled operators with strong technical capability and service coverage. Now our scale creates clear operational advantages, stronger purchasing power, better technician specialization, improved workshop utilization and faster response time for our customers. Now as our platform grows, these advantages become increasingly difficult to replicate. At the same time, the long-term market fundamentals remain attractive. Commercial vehicles and transport equipment require ongoing maintenance regardless of the economic cycles and uptime requirements continue to increase as fleets come more professional and technically advanced. Therefore, we believe that our combination of scale, multi-brand capability, technical expertise and geographic coverage positions us well for the continued long-term growth. What we are demonstrating here is the earnings profile of a scalable service platform. During quarter 1, 2026, we delivered strong net sales growth while simultaneously improving our profitability. Now the growth in sales has been supported by the -- has been supported by a combination of the acquisitions we made last year, but also healthy underlying organic development across our platforms. Now importantly, this growth is supported by natural structural demand drivers rather than just short-term market timing. As said, commercial vehicles require ongoing maintenance regardless of the economic cycles and fleet operators increasingly outsource service needs to capable network partners. And at the same time, our scale is improving our operational efficiency. As volumes increase across our network, we benefit from better mechanic utilization, procurement synergies, technical specialization as well as broader customer mix, and this creates operating leverage in our business. We also continue to see opportunities from consolidation in the still fragmented market where scale and multi-brand capability are becoming increasingly valuable. So the key message here is that our growth and profitability are reinforcing each other. Now one of the most attractive characteristics of this business is the quality of earnings and cash flow generation. The workshop model naturally supports strong cash conversion. Billing cycles are short, working capital requirements are low and reinvestment needs are relatively moderate compared to many other industrial businesses. Also, inventory requirements are limited considering the scale of our operations, which, of course, support our capital efficiency. Now in addition, the underlying demand profile remains extremely resilient. Many of the end markets we serve, such as logistics, public transportation, waste management or emergency services are essential functions of a society that continue operating across different economic cycles. Now combined with our diversified customer base, this creates business profile with a relatively stable demand and good visibility. So when we think about the long-term characteristics of our platform, we see resilient earnings, strong cash generation and attractive returns on capital. Raskone is our Finnish platform in the commercial vehicle services and case Raskone is important for us because this clearly demonstrates our ability to execute operational improvement over time. The operational EBITDA in 8-year period improved from approximately negative EUR 0.3 million to around EUR 5.5 million. Now most importantly, this is not only an earnings improvement story. It's the story about the people and the change in the company's culture. So during this period, we significantly improved cash conversion, returns on capital, working capital efficiency. And currently, we are operating Raskone with negative net working capital, personal satisfaction and most importantly, of course, customer satisfaction. Now -- but the key point is here that the improvements made, they were driven by operational levers and discipline that are repeatable across the group in different countries and different companies. Raskone has built a very strong operational culture, which is focused on workshop excellence, customer service, technician productivity and utilization management. Now based on our learnings in Raskone, we have developed a workshop excellence framework with more than 100 concrete operational best practices that we can implement systematically across our platform. In Raskone, this translated into higher customer satisfaction, stronger customer relationships, improved workshop utilization, expanded technical capability and ultimately significantly improved profitability. Now it's good to bear in mind that our strategy is not based on turnaround situations, but on partnering with strong businesses and helping them to improve further by operational excellence, customer focus and scale. So we help these companies go from good to great. Now we see similar opportunities across several markets where operational maturity and profitability are still at their earlier stages. So we see case Raskone not just as a one-off success story, but as an evidence that our operating model can be replicated across the countries over time. Going forward, our focus is primarily on 3 value creation levers. First, operational excellence. So we still see -- we continue to see significant opportunities in improving workshop utilization, our technician productivity, service quality and overall operational efficiency. Now as demonstrated in the last -- previous slide, relatively small improvements when done consistently utilization and operating discipline can have a meaningful impact on the overall profitability. Second, deepening customer relationships. Both large fleet operations and smaller entrepreneurs increasingly value reliability, coverage and multi-brand capability. Now by expanding our service quality, service offerings and geographic coverage, we can increase customer stickiness and grow our share of the aftermarket spending. And third, selective consolidation. The Nordic commercial vehicle aftermarket still remains fragmented, and we believe scale advantages are becoming increasingly important. Our focus is disciplined and value-accretive M&A, where we can apply our operational capabilities and strengthen the broader platform we have. Now taken together, these initiatives support continued profitable growth and long-term value creation. Now looking ahead, we see a clear path for continued earnings and return improvement. The foundation is already in place. We have a scaled Nordic platform, strong market positions and resilient underlying demand. Now from here on, the value creation is driven by 3 primary factors: First, continued operational efficiency improvements and higher utilization across our network; second, increasing our scale benefits and synergies as we continue to build the best platform; and third, disciplined consolidation in a fragmented market where we can apply our operating model effectively. Now combined with the capital-light characteristic of our business, strong cash conversion, we believe that this creates an attractive framework for long-term EBITDA growth and improved returns on capital. Ultimately, our ambition is to continue building the leading independent commercial vehicle aftermarket platform, and we believe that this positions us well to continue compounding earnings, cash flow and shareholder value over the long term. Thank you.

Thank you, Jan. Before we move on, a quick reminder to those of you following us online, please feel free to continue to send in your questions, and we will get to them shortly. But before that, we still have 3 presentations to go. We will now move on to the next business area presentation, and I would like to welcome Johan Carlos on stage, who will talk about products and solutions. Johan, the floor is yours.

Good start, get pumped. So -- this is not we have to do this as well. Okay. So I want to start this slightly differently. I believe that many viewers here, we have many today and you here are thinking that our business is something kind of practical, lights, bars, sunvisers, work lights and accessories. But today, I want to show you something else. I want to show you why this can be one of the most interesting area in the whole Relais Group. And I would guess that many of you viewers or you in here do not drive a truck as a daily business or work with your vehicle on a daily base. And that's exactly why it's so easy for you to miss what is happening in the market because what may look as a simple product on the surface has something much stronger underneath. There's a shift in the market, and that is the foundation of product and solution. So let me start with the main thesis of the day. I see a market where function meets identity, where products that people need in their work also can become products that they love, that they choose and feel proud of. That is the foundation of this business area, and we are not just building more and more products. We are building premium brands that users and professional customers actively seek out. My main thesis is we take products that people need in the daily work, and we build them into products that people want to have. That is what we have done with Strands Lighting division. And that is the playbook we're now going to use more broadly across our business area. What makes our area strong is the combination of 2 forces that rarely exist together. Number one, the product solves real needs. You need work -- you need to have light to work. You need bars for protection, mounting and function. You will need accessories that makes your vehicle better, safer and more useful. Secondly, the same products they carry identity, design, image and pride. The feeling that the vehicle becomes more personal, more professional and more you. This has already happened in many other categories. Nike went from sports equipment to identity. And here in Finland, everyone knows what happened when phone went from a functional tool to a personal product and an ecosystem. Apple captured the user's heart, not only the technology. The same type of shift is now entering our world. These are not only need-to-have products. We also turn them in to want-to-have products. And that is why this category is much more interesting than it looks on the surface. It has the stability of functional-based products, but the potential of classic brand-driven items. The old market has treated these products like classic article numbers. I believe that is a fundamental mistake. The new market will be won by the brands that user actively choose. The future do not automatically belong to the biggest one. It belongs to the fastest one, the most relevant and those who dare to challenge old truth. This is not just a theory. Strength like in the vision is the living proof of this. This model has a fantastic potential. We have taken Strandsighting division from a sales of EUR 0.6 million to a sales of over EUR 30 million in less than a decade. We have gone from one market to 50 countries. We have done it organically with our own products and with strong profitability. This is not a coincidence. It's a result of a clear playbook, products, brand, user focus, speed and execution. But for me, this did not start as a strategy plan. It started in the warehouse. For about 15 years -- about 15 years ago, I walked into strand as an 18-year-old kid. I was supposed to work there for a few days, but I immediately felt there was something in the air, something in the culture, something in the energy that I wanted to be a part of. So I got the chance to go out on the road and meet the real ambassadors of our market, the haulers, the drivers, the installers and the people who not just use the product -- use the vehicle, they are living through the vehicles. Then that was a point where I understand something that has changed my whole career and was a game changer in my life. Light is not just about lumen, but or the cables. It is about how the vehicle is experienced, how it looks, how it works and how it makes the user feel. That was the gap in the market. And we decided to take that and build something different. For me, a strong brand starts with the culture, with the people and the passion and a clear vision for the product. Brand building do not start in Excel. It starts with conviction, product and user insight. But when it's done right, it will show up in your Excel, KPIs and P&Ls. But the most important thing is product, product, product. You can talk as much as you like about strategy. But in the end, the product speaks for itself. If the product doesn't give you or create real functional value, trust or desire, there are no real foundation to build upon. Strands grew because we early realized that we could not compete just selling a product. We had to sell the concept. We were not just longer selling products. We were building a brand, a sense of belonging, and we put a new standard of quality in our niche. We built a concept that gave the user better products, more freedom of choice and a stronger feeling for the vehicle, while we also gave the reseller a real brand that drive demand. Our motto is feel the passion for every driver every day. That is not just a slogan. That's our filter on how we build products, brand and customer experience. This brings us to our business model. It's very important to me to be clear. This is just not a story about passion, this is a business model. When we build premium products and brands, we gain greater control over quality, positioning, pricing and long-term value. That's what makes this really interesting is that if the user actively choose a brand, we become less interchangeable. If we become less interchangeable, we gain stronger pricing power. And if we have stronger pricing power, combined with discipline in costs and capital, we can create both growth and profitability at the same time. That is why I see the business area Products & Solutions as more in a group of companies. I see it as a platform from where we can accelerate companies, brands and people. We operated in a niche where users care so much more than the market historically have understood. This is also where the case become interesting as investment. We have strong functional demand, very important, strong functional demand. We have strong brand potential, and we have a model that can create international profitable growth. Preferences creates pricing power. Pricing power together with cost control and capital discipline creates what, margin, ROCE, and that is where passion becomes shareholder value. So where do we play and how do we win this? Our play field is very clear. We are not building a scattered portfolio. We are not chasing everything. We will own and develop companies with great brands for vehicle end users in categories where products has real functional need and emotional potential. When a product is functionally needed, creates pride, identity and desire, you can build more than sales. You can build loyalty, you can build pricing power and you can build a strong brand. That is why we are focusing on accessories, components, software and services in the aftermarket area where we can get really close to the customers and the users. But just as important as where we play is how we win this. We will develop and scale our existing companies. We will acquire complementary premium brands, and we will expand internationally through strong distributors, and we will stay disciplined at all times. For me, passion, economics and best is just not 3 nice words on a slide. It's a decision system. Passion means that we must understand the user better than everybody else, not only the customer in the chain, but the person behind the vehicle, what does the person need and what does the person want to express? And why do they actively choose us? Economics means that our passion must never become our hobby. We build strong brands, but we will do it with gross margin, cost control, capital discipline and a clear responsibility for the results. Best means that we will never accept good enough. We must have the ambition to create the most innovative and most attractive products in our niche. Not the biggest everywhere, but the best where it matters. When those three meet, we have something powerful, products that users care about, a business model that works and a culture that do not accept mediocracy. Strength, Qx, Net King are all different categories, but they share the same foundation, design, identity and premium execution. With this logic, the strategy going forward is very simple. Our strategic priorities are fundamentally based on four things. First, building brands and selling concepts, not just products. That's the difference between being interchangeable or being chooser. Second, selective M&A. We look for the hidden gems with a unique DNA, a strong niche entrepreneurial passion and a loyal user base and the potential to scale internationally with our playbook. Third, to be international. Strands has shown that it's possible to take a strong local niche to become global, and we will use our knowledge and spread it across the area. Four, the most important thing, people. These type of companies are not built by bureaucracy. It's built by entrepreneurs, product people, salesperson and teams that generally care and live the brand. I strongly believe in decentralization. We do not want to buy away the entrepreneurial spirit and power. We want to amplify it. Decentralization does not mean lack of clarity. It means that entrepreneurial power is close to the market with common direction, common principle and clear responsibilities for value creation. And for you, very important, how does this become shareholder value? If I was boil it down to value creation, it comes down to three levers: Innovation and product creation, that is the engine. We will create products that makes us the first choice for passionate users and professional customers. Scalable brand power. We will take proven concepts out to many more markets, but without killing the DNA. That's super important. You must not industrialize away the DNA of a strong brand. Premium margins and ROCE. We will grow with discipline. Growth without profitability is just action. Profitability without growth is not enough. We will do both. What I want you to take with you is that our market is much more interesting than it first appear. On the surface, it might look like easy products like bars and accessories. But underneath the surface, there's a category where function, design, user identity and brand power meets. That is where we have built strands like the division. That is where we see the opportunity in Qpex and Nedking, and that is where we believe that the future winners will be created. We are not just building products for vehicles. We are building brands for people who use the vehicle to work, create, live and express themselves. In a market that still thinks commodity, we see enormous opportunity to build strong brands and companies and create long-term shareholder value. So if you're only going to take one thing with you today, take this. We take necessary products and build them into brands that people want. That is where function meets identity. That is where passion become demand. That is where demand become pricing power, and that is where pricing power, discipline and execution become shareholder value. Thank you.

Thank you, Johan. I am sure we have all felt that passion. But now without not less passion about this, we are turning into the financial review. And please welcome Thomas Ekstrom, who will now present Relais' financials. Thomas, please go ahead.

I'm sure you know the kind of key financials and key financial characteristics of Relais Group. And first slide here is to show and it's an evidence that we had profitable growth and strong cash flow for a long time. And the Q1 report and Q1 financials shows, as Christian also already mentioned, that we had really strong net sales growth, we had really strong EBITDA growth, and we also had a fourfold increase in cash flow from operations. And these kind of levers behind this is acquired growth from acquired businesses. And also then we had organic growth, which then comes from both increased sales, but also improved operational excellence that we have stressed a lot here in the earlier sessions. So this is really a testimony that we are on the right track and we will improve in the coming years. And what is also important is that we have a really healthy financial position. Our equity ratio is almost 37%. And our leverage, which means net debt to LTM EBITDA is 3.5, and this is even after a series of strong and big acquisitions in 2025. If you take in the pro forma figures for the acquired businesses, this leverage number is slightly lower than our reported here. And we have grown into a big corporation. We have total assets of more than EUR 500 million. So really kind of a healthy financial position to build on. And as I said, we have delivered profitable long-term growth. If you look at the 2019 figures, we had net sales of EUR 100 million. Now we are going way above EUR 400 million in 2026. And also EBITDA was EUR 13 million back then. And now we actually have a pro forma run rate of about EUR 45 million, as said in connection with the Q4 report earlier this year. So really good delivered profitable growth. Then coming to net working capital, which has been mentioned many times here today. It's really a strategic asset for us. It's kind of really -- especially in technical wholesale business area, it's a balancing act between availability, have something to sell, but also capital efficiency as capital efficiency is really important for us to free up as much capital for acquisitions and also to improve the business. And as we know, we have now about 31 companies in the group. So it's really important that we have a benchmarking platform to compare these companies between each other. And this will also drive increased capital efficiency, which we now have a big focus on, as indicated in Christian's speech earlier today. Going to cash flow. As said, we have produced really strong cash flow. And here, it's really important that we have a steady, good profitable growth, and we have a predictable maintenance CapEx, and then we have really a controlled net working capital fostering. And as I said, we think that we have a lot to do still on the net working capital side. So really kind of good important cash flow here. Then looking at us, and this picture pretty much characterizes who we are as a business. We prepared the acquisitions many years, they take many years to foster and to land. So then when the acquisitions merge -- mature, we happen to do many acquisitions at the same time as we did also in 2025. And that, of course, pushes the leverage higher temporarily. But then you see from this chart that we have been able to then delever and free up lower leverage over the years and then prepare for the next kind of bigger acquisitions. So this is really a key takeaway also characterizing us as a business. I think that's it shortly.

Thank you, Thomas, for walking us through the financials. So now to conclude the presentation section for today, I would like to invite Christian back on stage for the closing remarks. And after that, we will get to the Q&A session.

Thank you very much to the business area heads and to Thomas for their presentations. It becomes quite obvious when you listen to the business area heads that they have been through development journeys with 4 companies within their respective field and delivered impressive value in their respective companies. That makes me comfortable that the companies that we have acquired and are going to acquire in the future in these business areas are going to be taken care of and are going to reach their full potentials. And I think that's what is unique with Relais Group. Talking about us as an investment, we are having the characteristics that you see from a serial acquirer, and there are several of them and the ability to create value has been proven over and over again. But what they don't have and what we have is Juan, Jan, Johan, our companies, our expertise in the area where we are operating. We are the best suited to identify the best companies to acquire. After the acquisition, no one can beat us on the value creation of the companies that we have acquired. And this combination, I think, is a real strength for Relais Group. And that is basically the investment thesis that I would like to share with you today. We have been creating substantial shareholder value up until today. We have outperformed Helsinki OMX by some 1.3x since the IPO. And if you put in EUR 1 in the IPO back in 2019, I think it was, you have EUR 2.36 today. We have introduced new financial targets. In essence, it means we will continue on a strong EBITA growth but we will only do that when we are certain that the quality of the EBITA that we are creating is good that we get the right returns from the capital we deploy into our company. The dividend policy has been presented 30% of diluted earnings per share. So the final slide, I hope it has become clear for all of you joining us today that we have a clear direction. We have a clear accountability throughout the group, and we have a clear performance and we will continue growing. And with that, it's time for Q&A. And for this session, I would like to welcome up on stage the business area heads, Thomas and Sebastian. And we hope that you have submitted your questions online and you in the audience have your questions ready to deliver to us live here in the studio. Welcome.

Good. Thank you, Christian, and thank you, everyone, for the presentations today. We have already received a whole lot of questions, and we will, of course, try to cover as many of those as possible. But I'm pretty sure that we will still need to leave some for the next time. But again, I remind you that if you have questions here in the room, please raise your hand, and we will bring you a microphone so that everyone online will also hear the questions. And let's start with a few questions here in the room. So if we can get the mic here to the front row first, and then we will move on to the questions online.

If I start with more generic questions regarding your financial targets, and then I'll save some questions for the business leaders later. Yes, my name is Pia Rosqvist. I represent DNB Carnegie. I start by asking about your double-digit EBITDA growth ambition. Can you specify how much of this growth would come from organic improvements and how much is driven by M&A?

Thank you, Pia. Organic growth will be essential for us in the coming years. After the acquisitions, we need to ensure that the companies are continue growing, and that is essential to get -- to be able to get the return on capital employed to increase. So organic growth, very important. We will fuel that by acquisitions. How much will come from organic growth and how much from acquisitions will vary over time. But both of them are required and will be in focus for the next strategy period.

Then regarding your maybe geographical focus, you didn't specifically mention your ambition now during the next 3 years. Is your ambition to strengthen your presence also outside of the Nordics? How do you view this?

My ambition and the management team's ambition are to deliver on the financial targets and create strong shareholder value. We will continue to do that in the Nordics. If the right opportunities arise for our shareholders where we can create a lot of value in other countries outside of the existing zones, we will go there. But we won't go there for the sake of expanding geographically. So I don't know if that was the answer, but first of all, it's about creating shareholder value, and we will navigate in the different markets depending on what opportunities comes up.

And if I still can continue with a few questions. Regarding your -- you have now set an ambition regarding EBITDA growth. But how would you describe the sustainable profitability level for Relais in its current form and business split? So do you have some kind of EBITA margin ambition, which do you think is sustainable?

Yes, I have one and the business areas that we're not going to share with you today. But let me put it like this. When we do benchmarking across our business areas, we see a quite wide range of similar type of companies operating in a similar market, same conditions where one is clearly above the other one in the margin. And that for me signals opportunity. That's the potential to bring and raise the bar overall for all the companies to get them to the Raskone level when it comes to yarn, to get them to Strand level. So we have an opportunity to increase the overall margin, and we will do that by improving the whole kind of group reach to the best practices.

If I saw correctly, I think was there a raised hand also in the back. So would it be okay if we take one question from there and then come back.

Stefan Knutsson from Redeye. I want to talk a little bit about acquisition targets. So -- and you do have some internal recruits, so maybe we will have good answers. But how does the typical acquisition target look like? Why do they want to sell? And also, what is usually the first action you take after an acquisition is done?

To open up here, maybe Sebastian, would you like to -- because Sebastian is our Head of M&A, would you like to elaborate a bit on this?

Yes. I think we see some specific characteristics of acquisition targets. So we have situations where you have an entrepreneur who has built his company or her company to some specific level and then they feel that, hey, now I need support to take it to the next level. Then we, of course, have experienced people in the group. We have the benchmarking, we have the tools. We have the kind of experience to help them do that. The other one, of course, is you have built a company for your whole life and you are nearing retirement and you are worried about what happens to my employees, what happens to my customers, and then they try to find a good home for the company. And that is also what we can do. What's the second part to the question?

Yes. What is usually the first action you do post acquisition?

Post acquisition, we have a kind of realized onboarding initiative, 100. So we have a 100-day onboarding initiative in order to get the company up and running in the process. reporting and stuff. Then we have, of course, in every situation, every acquisition, we have a value creation plan, which we start to roll out immediately. In some parts of the value creation plan, you can do it overnight. Some part take months or even over a year to get the full effect out. But we do have a plan in every single case.

And also to follow up, you have done some sizable acquisitions, mainly in commercial vehicle services of late. How does the growth runway look like in the Nordics for that type of the business?

Jan, would you like to take that?

Yes, sure. Well, as Christian just told there, I mean, we see still a clear possibility for improvement in the profitability and also improving the the working capital we have in the company so that we can also get the other platforms to the level that Rusccone currently is sitting at. We acquired from Norway team Verste last year. I mean, so far, we have been very -- we have a clear plan what we are trying to achieve with the team there. And so far, we have been very happy with their progress. And I mean, they are going according to plan we have. And also the consolidation in the market. So I mean in all 3 Nordic countries, we see possibilities for further consolidation.

Very good. And one last from me for Juan. Really nice story on Strand. How many product categories outside of lighting do you see similar potentially?

I would say the potential is very big. If you see the market, you just need to identify where we have a functional product that can be turned in as well to want to have item, as I had an example of the phones went from functional to a personal item. We have lighting, we have accessories, we have car. There's a broad spectra. Everything that is used on car on a daily base or trucks, we can turn in if it's the right mix. But it's mostly about the person and the brand behind it to see that they have the potential or if we can use our playbook to scale it or build the brand from already a bigger platform of products.

If I then take a couple of questions from online or Christian, did you want to -- yes. So -- and then I saw a hand here. So if we can then move the mic back to the front again. But a couple of questions from online. When will we see focus on EPS?

I mean we don't have EPS as a financial target. But if we deliver and when we deliver on our financial targets of EBITA growth and return on capital employed improvements, it will trickle down to an EPS increase. So even though we don't have it as a target, it will benefit from the focus that we are now putting in.

And then another one, is there a risk that you will run out of acquisition targets in the Nordics? Are you forced to look into new countries?

No, it's not a risk. And by the way, we are not forced. We like other geographies as well. So we will continue to acquire companies in the Nordics. There are many left to be looked at and identified and acquired. And then we will look in the broader European arena as well.

And maybe one last question from online. At this point, you did not speak about your general principles of financing acquisitions. Do you always prefer to use cash and new debt instead of your own shares?

We will use -- we have a toolbox, and we will use the means of found that is best fitting for our shareholders to create shareholder value. It can be by paying by cash and using debt. It can be by using our own shares. to get the entrepreneurs on board on the ownership side, so to say, and be joining us in the value creation journey. So it will be case by case.

Do we already get the mic to the front? Thank you.

Joni Sandvall from Nordea. Maybe starting first maybe to Christian. Following the, let's say, acquisitions pre last year, you were speaking more about synergy benefits at that time. Any update on that front?

We -- so about synergies. So we are not -- we don't work with forcing our companies to cooperate or buy from each other or -- but we do that on a win-win basis between the companies we have in the group. Synergies is also learning that you can learn from each other in the group. We can learn from how Raskone are doing things and take that to Norway to T Vera. So we are getting a lot of soft synergies, if we want out of the acquisitions that we have done. We are progressing according to the plan that we have had, and we believe that together, our companies become stronger.

Okay. Then maybe on the M&A, Relais has been expanding during the past year. So where is the current focus in M&A? Is it fully driven by ROCE? Or do you have any more color on what is the current focus area to grow in?

I mean, simple said and Sebastian was into, we're looking for the diamonds, right? The business area heads are now developing a pipeline of the leading companies that they want to acquire and that they would like to attract to our group. We do this across the Nordics, but we also do this in several other countries within Europe as we speak. We want to have the top players. I think Juan talked about that. They want to play with us in Champions League. Yes. Is that a good answer for...

Maybe then a question also to Juan, not to let you out of lease yet. You were speaking about expanding product categories or to adjuent categories. How well this plays with the target to reduce the working capital and what categories you are, let's say, underpresented currently?

The goal is not to reduce the working capital itself. It comes together with the profitability of the products that we sell. So when we see a product line that we, on one side, see a market demand for, it could be on the electrical side, diagnostics systems, et cetera. And we can see that the profitability aligns with the inventory value for it, then it makes sense. Of course, the market demand has to be there as well. I give the floor for...

Mika Karppinen from Danske Bank. Concerning the sort of capital reallocation for how big part of your current capital employed you are looking for new home, so better returns. Is there some areas where you have a really sizable problems compared to average in this capital employed area? Are you planning to use part of that reallocated capital to pay back debt? And then what kind of firepower you have left for M&A?

Thank you. So we have put targets in the business areas on each company on what are the returns that we are expecting from each of our companies. And then we have to deep dive and double click to see how is this spread across the assortment and the categories that we have in the companies. Starks is an example where that we announced in the Q1 report where we are now freeing up cash, reducing the assortment because we have seen that the expansion did not pay off in the return that we wanted to have. So now it's kind of back to excellence and back to the core assortment that we know is valued by the customers and where we get a good enough return. So I don't have an exact amount, but it is where we -- where we don't reach our thresholds simply. So we are doing screenings in all our companies about where do we have the capital and where does it bring enough value. I think the capital that we free up should be used in organic growth initiatives. So this should probably be priority 1. Priority 2 would be acquisitions. And then, of course, we have to make sure that we are having a balance of distribution to shareholders and reinvestments in our kind of growth engine, if you want. And I guess there, our new dividend policy will kind of help us get the right levels.

M&A firepower.

M&A, sorry, pipeline?

M&A firepower.

Firepower. Yes. After the acquisitions in 2025, of course, the debt level has increased. This doesn't impact the ambition that we have, but it can impact the pace of our acquisitions. We are continuing to look at acquisitions. We have a strong pipeline. We have ongoing dialogues. -- whether they materialize this year or next year, let's see. We are not actively looking for the larger acquisitions at this moment, but they might come anyway, and then we have to decide should we execute or not, right? So we have dry powder if the right opportunities are there.

Let's again take a few questions from here, and then I promise you, we will get back to your questions. You currently have an adjusted EBITDA margin of 11% in Technical Wholesale. Are you satisfied with this level? Or is it possible to improve?

Yes. We are partly satisfied, but we still believe there is room for improvement. We are doing a lot of activities to make that happen. So I wouldn't be surprised if we can see a nice increase in the near future.

And again, for the business areas, maybe more, you talked about the improvement playbook in commercial vehicle services with over 100 concrete measure. Can you give examples of the most important ones? Can you also give some color on the lower margin compared to other business areas?

Without giving away any secrets to our competitors, of course.

Yes, then probably not. But no, customer service and operational capabilities is at the core of our operational excellence playbook. We are in the business of selling uptime. So if we do our job right, meaning we get our customers' vehicles quickly back on the road, which means that they are unable to earn money. And if we do that job right, I mean, they place their trust on us, which means that they trust their fleet on our hands, which ultimately drives better utilization and better utilization then, of course, is the -- it drives better margins. So actually, the logic is quite simple, great service, happy customers, better utilization and better margins. So ultimately, all the measures we take ultimately serves that purpose. And there was another question...

Let me check. I already -- I was...

EBITA margins on the business area. Yes. I mean -- yes, that's true. I mean we have been very transparent about that, that commercial vehicle services structurally have lower profitability than other business areas, but it's not the right lens to look at this. So in addition to the EBITDA percentage, I mean, we can drive the business with very low net working capital. Also, this business area converts earnings to cash very effectively. So I mean, that we believe that creates this business area that creates value and has great returns. So we run this business not for -- we run this business for cash flow and returns on capital, not just the headline EBITDA percentage.

And maybe to add on that. So of course, Jan has his playbook for the workshops. Johan has his playbook for the business area he is driving, right? And Juan has his playbook. So of course, we have the playbook on how to help the companies reach their full potential in each of our business areas. And as well, you can call it the playbook, the overall playbook and the culture about being decentralized and disciplined, which is framing everything. So that is just -- I want to make that clear.

And maybe I'll take one more here because it probably goes to same direction. How does electrification impact commercial vehicle services?

Well, transition to electrification, it's real, but gradual. So fleet renewal cycles are long. Infrastructure is still taking its place or it's building up and operators are also still figuring out the economics of electric trucks. So in the long term, we see also opportunities since electric trucks. I mean, they require more from their premises. They require more from the tools and they require more from our personnel. So this actually raises the bar of entry and benefits larger players such as us. So to sum up, it's gradual and also creates opportunity for those who are ready, and we intend to be.

If we then come back to questions here in the room. So thank you again.

Yes. It's Pia again. Regarding your targets, still, I'm coming back to the mentioning of a business cycle, what is the business cycle for you? I mean your business is relatively stable and defensive, not that cyclical. So what is the business cycle you referred to? And where are we in the business cycle right now?

I guess what we mean with that is that some years will be higher growth, some years will be lower growth, but over a cycle of -- to get an average value, so you can put that to 5 to 7 years maybe as a business cycle, where we are in that now. I mean, at the moment, we have 40-plus percent growth. So I guess we are in a steep increase in EBITDA at the moment due to the acquisitions that we did last year.

And a very small nitty-gritty. When I look at your targets, does your target include or exclude nonrecurring items when you set this EBITA growth?

I think I would say it's adjusted EBITA that is the basis for this target.

All right. If I can continue with a few questions still. Regarding your balance sheet, you strengthened it with a hybrid bond last year, and I can't recall now when the reset date is in '29 or yes, maybe '29. But looking now at your strategy period extending into '20, does this really -- it ties your hand? I mean, you gather capital, but it doesn't leave you much room. I'm coming back to the question on the M&A headroom you have.

Yes. We believe that we have a very good relationship with our bank. We have a strong shareholder base. We have still dry powder to make acquisitions should we decide to. Also larger ones can be done in the current -- with the current balance sheet. We are proactively looking into the future kind of funding needs and how to manage that in the best way. So we are comfortable with the situation that we have the right tools, so to say, to continue growing also through acquisitions.

Can I -- Christian can add to that? I'd just like to add that, of course, as we have a growth target, some of that is organic growth. And as profitability improves, that creates headroom for the credit metrics as well. So I think keep that in mind. And then, of course, we generate cash flow during our business.

And one question still, and then I'll move back in the line. I'm thinking about the commercial vehicle service and maintenance business, and you referred to selling uptime. Does this convert into a revenue model? I mean, do you have a profit sharing agreement with your customer or your customers?

That will be quite unordinary in this business.

Yes. Maybe a question to you, Johan. Thinking your geographical footprint, where you see best opportunities in terms of growing your business?

Where? For me, it's kind of clear. We need to move there where the market is sizable enough. So Germany, U.K., and we have just entered in the Benelux area. But I'm not seeing it just as that. I think where do we have the real lever in the company that we acquire. And then we will take them there as well. That's also key important. We can find something in the Nordics that we can bring out to Europe. And then we will have a real strong lever on the organic growth and vice versa, we can take something from Germany and bring it to the Nordics. It's just using the playbook and entering more markets is the key.

Okay. And final from my side, maybe Jan. Thinking about your utilization ratios, you were speaking that you have improved those clearly in Raskone. So how large upside you have from the utilization ratios if we are thinking acquired companies?

I mean we are not disclosing any targets for the utilization rate, but I mean, we can clearly see that there is possibility for improvement, and we are working on them.

Moving back to the topic of M&A and focusing on the deals that never get done, what are usually the main reasons for Relais not to complete an acquisition you have been negotiating on? And just to make it more interesting, let's not focus on price here.

Sebastian Ola, would you like to take that?

I mean, if I may start with valuation, of course, is a key part of that because it plays into the return on capital potential. But beyond that, it's -- we know we -- our business area heads, we know the business. So we, of course, look at the risk profile. If it feels correct, then it's okay. If it doesn't feel correct, something is off, then we often also use that as a metric. But there are -- we look into customers, we look into suppliers. We look into the market niches. This product group is really strong in a small niche, and there are barriers to entry and stuff like that. So it's a really dynamic equation that we look into and try to analyze during the process. But generally, demand-related risk seems to be a really relevant one here. Correct because, of course, our business model is dependent on us being able to create stable cash flows to acquire more companies.

And throwing one Christian's way. In your presentation, you really highlighted how you're going from an era of growth to an era of shareholder returns. How has your organization and your subsidiaries adjusted to this change of focus?

I mean we have had focus on the returns as well before, right? But now we're just kind of pushing that one step further. And I mean, even since I joined the company in January, I've heard from the business area heads and from Thomas, the importance of returns and that they are already working on this and that they are working with their companies to get good returns, but we haven't had it as a financial target, and we haven't communicated to the market in the same way that we are going to do now. So it's not a big change. And in the way it has been a change, it has been very positively received by the BA heads and also by the MDs in the companies.

But you would say it has already been part of your DNA from before.

Of course, we haven't just bought whatever, right? That's for sure.

Let me just take a few more questions from online, and then I promise we will still come back for final questions here to the room. But let's have a look. Products & Solutions sounds more consumer or lifestyle oriented. How does it fit with the vehicle aftermarket strategy?

So there is a common mistake. As I expressed for you in the presentation, we are taking functional products and make them want to have. But in real terms, north of 80% are used by professionals. You can take if you do a home, that's the drive. So we are north of 80% is professional. So this is a misunderstanding and a misinterpretation of our potential.

And then a couple more from here. How do you feel about leverage? Is current level comfortable? Or do you want to increase/decrease it?

I think we already covered that one. So probably we are comfortable with the current level.

Yes. In the previous strategy period, you communicated possible interest in transformational M&A, potentially meaning larger, more complex and riskier deals. Is this off the table going forward? And are you just focusing on smaller deals?

Smaller deals is our bread and butter that we will do every day, every quarter. Larger deal is, to some extent, more complicated and comes with a higher risk. However, if we are able to identify a platform that is attractive and is broadening our scope and putting us into a market or a niche where we are not yet present, we will still look into platforms and do platform acquisitions. But the bread and butter should be on the bolt-ons and the smaller acquisitions.

And now I think we still have time for a couple of questions if there are still some questions here in the room. Or in case we are more than satisfied for this information, then I think we are ready to close the Q&A session. And Christian, you probably want to wrap up this afternoon.

Yes, I'm not going to take any more of your time. But thank you very much to the management team for the preparation and presentations here today. Thank you all of you for joining us, both here in the studio and online. We are very much looking forward to the next phase of Relais Group, turning growth into returns. Thank you.

Thank you.

Thank you.