Schouw & Co Aktie

Good morning, everybody, and welcome to Schouw & Company's Capital Markets Day. We are extremely delighted to see so many here in the room. It's a pleasure. It's been 4 years since we last had a Capital Markets Day, and we are looking very much forward to this day.

I have the pleasure of being -- keeping track of time and being the moderator in this. I will also talk a little bit during the presentation. We have 6 interesting speakers lined up for today. Jens, the CEO of Schouw & Company for more than 25 years, will do a bit of talking.

I am responsible for Investments and Investor Relations. And Thomas Hansen, our CFO, joined 2 years ago, will talk a little bit when it comes to capital allocation and the consequences of how we spend our money. Then we have 3 of our CEOs from 3 of the most interesting companies in our portfolio: GPV, HydraSpecma and Spectre.

These 3 CEOs will give a presentation of each of their businesses. We have a very interesting program, and I can honestly say that it will not be an issue of coming up with good points or keeping the energy in the room, but we might have an issue of keeping time. So we will do what we can to stick to the agenda. We will speak the first hour about Schouw & Company, then we'll have a short break, and then we will have the 3 businesses on the stage.

We will talk about 3 things today mainly. After the IPO of BioMar, which we believe was very successful, we will give a little bit of reflection on the conglomerate model that has created or led to the IPO, how that has worked in the past and how it will continue to work in the future.

We will talk about how we will invest the money, how we will look into CapEx to investments to acquisitions. Then when it comes to the 3 businesses, they will look into the outlook, the growth, the margin and how they see the future. And lastly, we will not wait until the end, but we will also give a little bit of insight in how our ambitions for the medium term or long term until 2030 will play out.

Before we start, I will just try to take a step back and look at what we said when we had the last Capital Markets Day in 2022. When we reflected over the program, we had 7 points that was the consequences or the result of the Capital Markets Day.

We introduced our purpose that Schouw & Company is all about enabling growth through transformation. So a lot about how this transformation agenda is underpinning everything we do. We were on the back of COVID, had a presentation of how the conglomerate was risk minimizing, diversified and the non cyclicality in our businesses.

We introduced ESG as a strategic priority. We had a rather ambitious presentation of Carlos Diaz, the CEO of BioMar. I at least see some in the room here said that it was maybe of even bold and very, very ambitious. But nonetheless, Carlos talked about the future for BioMar.

GPV has just finalized an acquisition of Enics and stood as in a position of a consolidator in the EMS industry. And then we had, at that time, some long-term targets, DKK 35 billion in sales in last year and DKK 3 billion in EBITDA. We confirm also our leverage and dividend policy.

And to try to look into what then happened, I think the transformation that the IPO of BioMar has led to is by far the most fundamental thing we could imagine in Schouw & Company. Schouw has been transformed. BioMar has been transformed and the purpose that we live after is really transformation of businesses.

We have also not expected war continues, raw material volatility and price uncertainty, blocking of the Strait of Hormuz and so on. But I think our businesses have definitely shown strong pricing power and very strong resilience.

So I think the message we sent in '22 was indeed confirmed. We have lowered our ESG -- our CO2 emissions. ESG is now a part of everything we do. BioMar did actually manage to deliver on the ambitious plan. BioMar doubled its EBIT from 2021 to 2025. So despite some of you, not mentioning any names here in this room, of course, but some of you said this was close to crazy. This was actually how BioMar succeeded and what we saw.

GPV has very successfully integrated Enics, will talk about that. We did, however, have one near miss in this list, and that is our financial ambitions. We were damn close to it, but we did miss with DKK 500 million or DKK 600 million on the sales and around DKK 70 million on our EBITDA. But I think it's fair to say that we almost managed it.

Leverage has in the entire time, been stable within our band and dividends have increased 13%. So with that, we have a strong history. Now it's up to make sure that we also will have a strong future. And with that, I will hand over to Jens, who will tell a little bit about how Schouw & Company is today and what the future might look like. Jens?

Thank you very much, Kasper. Let's hope that what we are presenting also later this day, we can -- when we look back in 4 years, have the same momentum as we have had. So I've really also been looking very much forward to this Capital Markets Day.

Welcome to everybody. Nice to see that so many of you will spend a few hours together with us. As Kasper also mentioned, a lot has happened since the last Capital Market Day. In fact, I would say the world has been volatile or even kind of crazy, but we have worked our way through it. And today, I would say we don't think new normal. We think this is normal. This is the environment we need to conduct our businesses in.

Also say that don't expect a big revolution today. We are Schouw and we continue to be Schouw, but we'll present ambitious growth plans. I think also when you see and listen to our 3 exciting companies we have brought here, we also see there's a lot of momentum within Schouw. So I think a lot of good things will materialize over the coming hours here.

I will just spend a little time on elaborating on who we are, what we do, how we do our business and so on. I'm looking down here, I know some of you have been following us for many, many years. So you more or less know our structure and things out and in, but also new faces. I think it's also in its place to just elaborate a little bit on who we are.

Let me just start with this one, just to setting the scene so at a glance. We are what we call industrial conglomerates. We have 7 very relevant businesses in our portfolio. And these 7 businesses, they have around 80 factories around the globe. So a truly global industrial company.

We have operations in 35 countries, and we have 20,000 employees working every day to create value for shareholders and for Schouw & Company. And these 7 leading companies, they turn -- make a turnover of around DKK 35 billion to DKK 37 billion, strong operational profits. I think we are, as we speak, in a very good position.

I haven't seen the share price starting up this morning, but otherwise, I would say we are standing on a position of all-time high share price, all-time high operating profit, solid balance sheet and then a very relevant and attractive portfolio of industrial business-to-business companies within Schouw & Company.

And as Kasper also mentioned, we are transformers. We continue to try to build and transform on our companies. Let me also just mention that in the Schouw ecosystem as well, we have one main shareholder, Givesco, is a family foundation.

They have been with us for 40 years and not rocking the boat. We call them the invisible hand. They're sitting there. They have been supporting the way we have developed Schouw & Company over many, many years, never sold a share, of course, hopefully been very satisfied with the shareholding, having dividends over the last 40 years.

But I think part of the way Schouw thinks, part of the way we operate also is coming from having such a longevity with our main shareholder. I think it's very important for us also, and I think it's a super good thing to have. So let me just give a small look into how do we do business. We are standing on or not standing, we can't stand on that, but we call it the circle, the strategic circle, 5 levers, it's our modus operandi.

And the most important thing is -- we are Schouw, we are a diversified portfolio. We have a diversified portfolio of companies. And that's the way we think, that's the way we act. And we have today, as I said, 7 diverse -- very diverse companies within our portfolio, but still, they are standing on the same platform. They are all business to business. They are all suppliers to big global companies.

So there's a lot of similarities in the portfolio we're having. Then we also -- it's important for Schouw & Company that we ensure that we have a strong capital allocation, capital in place to support our companies. Most important maybe and most fundamental within Schouw & Company is that we are active owners.

We practice active ownership, and I'll elaborate a little bit on that later on how do we really do our active ownership. Then also very important, and I think Kasper alluded a little bit on that, operating responsible businesses. Last Capital Markets Day, we introduced our ESG strategy, the way we want to work, being responsible, being trustworthy.

And it's super interesting is if I discuss with some of the old guys back in time on how have Schouw & Company done business, is there anything new in that? We always try to do our business in a responsible way, being trustworthy and so on. But now it's more into a frame.

And then last but not least, securing financial versatility as meaning that we have freedom to operate and take right decisions at the right time. I think that's very, very important nowadays. Several banks in this room here, but we are really very, very careful of not being too dependent on our financing and capabilities and so we want the freedom to operate. Also therefore, we have a very clear band on our financial targets.

Then just a glance into also what I call our organizational ecosystem standing on 3 pillars. We have, of course, the Board of Schouw & Company. Won't elaborate too much on that. Then we have the Schouw & Company management, we call it GET Group executive team.

Kasper already introduced us, but let me just take us through. We have Thomas, our CFO, still very, very young in Schouw & Company, a lot to learn. When you've only been 2 years with the company, then you're young, if you look at how long time Kasper and I have been altogether, but a seasoned management team that has been along for quite a long time.

Then we have our 7 CEOs fundamental for creating value and driving the businesses in Schouw & Company. And we really put them on also because they are creating -- running the businesses and also a very precise strategy on that.

We always say management hold the key and it's a mantra and it's fundamental for Schouw & Company. So then together, the GET team from Schouw and the 7 CEOs, we form what we call ExCo, our Executive Committee, meeting occasionally or with a high frequency, painting the bigger picture together, discussing exchanging things, inspiring each other, et cetera, and also all of them standing on a common platform. So there's a lot of inspiration to gather from each other within the company.

So it's a very strong and very well-proven organizational structure we have, and we feel really confident on that. And I think you can see all -- everyone has been around for quite a long time. Of course, Lars, he will present later on he's new kid in town.

In fact, we haven't seen the first monthly report yet from Spectre that new it is. So really looking forward after the meeting here to see what has been happening in Spectre the last month. Good. Then just a few words on the group, the headquarter where Kasper, Thomas and I reside and where we have our daily workplace. What do we do there? What is the purpose of having a group function?

We have within Schouw, really built Schouw and our companies on this lean philosophy. We are business to business. Every cent count, you need to be lean, you need to be efficient in the way you run your businesses. And that also starts with Schouw & Company.

We have 20 employees running the group, only doing things that we think create value. Active ownership, as I said, very, very important for us. We are allocating capital to our companies, participating in setting the strategic direction, meaning target setting for each of our company.

And then very important, all M&A activities driven out of Schouw & Company. I think now we see the CEOs here, they think, of course, M&A is very, very interesting and want to go into it. And of course, we do it in cooperation with the companies where we have a long experience in working on the M&A side with a lot of facilities and things we can put into that.

And then we have one common platform, and that's funding and treasury is made from Filtenborg from the house here. So we have a common treasury and financing, everything comes out of that, and that has really created significant value for Schouw & Company over the years, something, I think, 10 years ago, 15 years ago, we started to do.

Otherwise, we don't really do anything IT, HR and things together because it doesn't make sense. We have a saying only intelligence value-creating activities will be conducted out of Filtenborg. Also very important, we do all the reporting to our shareholders, to the stock market, and we always say we are very fond on -- it's very important for us to have an open and transparent reporting to our shareholders and to the market.

I think we always think we are saying what we see. And that's very important for us always really, okay, we are seeing this and we are saying and telling it to the market. Then just a little bit into how do we actually own why -- what are the principles for own companies.

And then I think Kasper was also into that, we transform, we own to transform and unlock value. That's part of the strategy, having this small holding company and then finding attractive companies and taking them into the Schouw & Company model.

So the model we are working on, you can see up here is we -- I think very important today is we understand how to own and navigate independent large companies because it really takes something when you have given the keys to management, when it's large independent companies, you have to approach them in a very delicate way because they are running the business. But our ownership model really builds on we buy to hold.

Everyone frequently -- I'm frequently asked, why don't you sell more? Why don't you exit? Because we buy to hold and transform and Schouw is Schouw. That's our model. We transform. We empower management, as I said, and then, of course, also always facilitating, participating if consolidation is going on in the market. So long-term value creation always in focus with Schouw & Company. Of course, we need to report to the market every quarter, but it's always with the longer view in mind that we do and run our business.

I think also we can say that we bring stability into our operating companies. Hopefully, some of the CEOs will elaborate a little bit on that later. But just standing there having a solid owner then on a rainy day, we are there, we can support them. That means a lot, of course.

Also we have what we call a best owner philosophy. What does that really mean? It means that the company have to create value, have to be able to transform itself, deliver and we also have to be in a position where we can allocate sufficient resources and capital to the company so it can continue to grow. If that stops, then we are not the best owner any longer.

You can see up there on the screen, what I call the ownership wheel. We acquire a company and then it gets into the wheel. We develop, we transform, we grow and then we are spinning the wheel and continue to spin it as long as it can grow and transform and so on. It's a strong company within Schouw & Company. And of course, things can happen so we can participate or will participate in structural changes, mergers or whatever.

Then I'll also allow myself just to raise the question, has our strategy over the last years created value? Looking back 25 years back, we have been growing year-by-year. We have continuously developed our portfolio and companies. We have had 5 very important focus areas, and that's to deliver operational growth. It's to deliver shareholder return over a period, also develop and have a relevant portfolio of companies.

And you'll see up there that we have really been active on especially bolt-on acquisitions. People think, do you not sell and exit and do things, but we have been very, very active on acquiring bolt -- strong bolt-on companies for each of our portfolio companies.

Then also very strong focus on having a solid balance sheet and then running a responsible business. And that's a new kid in town that we're much more focused on being responsible. We are a global player today, factories, as I said, in 80 countries, meaning also there are some countries, some areas where we really need to have strong focus on ESG and responsibility, other areas where it's not as important today, but I'm 100% sure that it's something that has come to stay.

Then also just showing that in -- since we created this diversification strategy, building an industrial conglomerate back in 1989, we have only, I'm doing like this, had 13 companies within our holding. And 7 -- 6 of them, they are not with us any longer, and then we have the strong platform of 7 very, very relevant and interesting companies.

I think also we can be proud from Schouw & Company that we have participated in developing what I call really world-class companies. We've been with the wind turbine since 1993 and participated in mergers, et cetera, was the biggest shareholder in Vestas and then we delivered Vestas to the markets.

Now #1 global wind turbine company really with Schouw & Company as one of the key facilitators in that. And then also looking at another company, Kramp up there. Maybe it's not a household name here, but it came out of our first acquisition, Grene in the western part of Jutland was a small company doing spare parts for agriculture.

We merged and did a lot of things. And today, Kramp is the #1 in the global agro aftermarket and really, really solid, strong company, Dutch-based. We had a share hold of 90% after mergers, consolidations on and then we sold it out. So 2 very, very strong companies coming out of the Schouw operating model, you could say.

Of course, also all of you know Schulstad, we've been in Schulstad, a lot of things won't go into that. But just to tell you, that's the way we work with companies. If things should happen, if consolidation is going, if it's necessary, then we are there, and we are positive to facilitate and work on that.

Then also a little bit, I'll take one of the companies out here just to show our transformation strategy. As I say, we do buy companies to transform, to grow. Looking to BioMar, I think we are a company we are very proud of having been part of, I call it, a transformation showcase. We came into BioMar in 2005. And then we have done a lot of bold moves over the last 20 years, entered into Latin America, entered into new species into Asia, done a lot of things.

And now we IPO-ed BioMar and prepared it for the next level journey they are on. We have unlocked value also to show to our shareholders that there's a lot of value within Schouw, and we unlocked value of DKK 2.6 billion in the recent IPO. But looking at -- I like -- I have to say a little bit, I like the box down there, looking on the numbers and the figures from BioMar. Together with dividends and the actual IPO, we have unlocked DKK 7.3 billion from BioMar.

So it's a really super example or showcase on how do we work and transform company. We could have done the same with Vestas and so on. So it's a big part of the DNA within Schouw & Co. Of course, also, it's not always everything really goes after the plan. We make mistakes, even I don't believe it, but we do, of course, we do.

And we -- when we acquire companies, of course, we always acquire a company because we have a strong belief in that it's a good fit for Schouw & Co., can transform it and we can do. What happens then if it doesn't play out the way as expected? Then, of course, we need to start up our active ownership strategy and just an example, Borg Automotive acquired back in 2017 had all fundamentals in place, circular economy, reman, sustainability, European-based production facilities in low-cost countries and so on, super good. Still a good company, but a lot of things played out the wrong way.

We had to close down our big Russian market, withdraw from that. We had the COVID coming up. We have strong pressure from products coming into China. Something needed to be done. New management team in place came up with a plan. We call it Refine for Future. It's at work now, a lot of footprint decisions taken, closing down factories, et cetera, et cetera.

And I can say that the plan is working. They are regaining momentum. Of course, a long way to go. It's a 3-year plan we are working on. But what we need here is to get this company back at the return on invested capital target we have. And then -- and then we will see what are we going to do with that company, is part of consolidation or things like that.

But really get it back in place, and we have a strong belief in that. So with that in mind, then let me just hand over to Thomas, who will also tell a little bit about our capital discipline. And I know it's something Klaus has been looking very much forward to, unfortunately, not too much on working capital today, Klaus. But we have -- let's see what Thomas is coming up with. So welcome Thomas on stage here.

Thank you, Jens, and thank you for calling me young. It's not every day I hear that anymore, unfortunately. And it's very nice to see a lot of familiar faces, also a couple of new ones, and I'm really pleased to meet you all today.

Before we talk capital allocation, I just want to touch on one thing that is actually making this topic even more important for Schouw. And that's, of course, the IPO of BioMar. Jens just showed that we unlocked DKK 2.6 billion in proceeds from that transaction. And that's, of course, really, really important to Schouw.

But to be completely honest, that is not the sole reason why we did the IPO. We did the IPO for multiple reasons. The first reason was actually to make sure that we were able to show that's my [indiscernible], no we did it to put spotlight on what's actually the value of BioMar within Schouw.

And that's actually what we believe we have managed and also part of the reason why we're seeing what we're seeing today. We also believe that it's extremely important in the conglomerate to have a balanced portfolio. And with the IPO, we are getting a slightly more balanced, even though very much skewed to BioMar still, but a more balanced portfolio, which we also believe is extremely important.

We still retain full control. We're still able to fully consolidate. I'll get back to that a little bit on what it actually means to the financials of having BioMar listed. But we're still able to retain control of the company, fully capitalize on their revenue and EBITDA into our numbers. So that's not a bad thing.

And of course, the proceeds then give us enough power to execute on the growth strategy that we have for Schouw & Co. So all in all, it's not just the money, but a lot of aspects that this IPO is contributing with for Schouw & Co. And with that, we, of course, know that capital allocation is key in our company.

We believe we have a very clear prioritization when it comes to capital allocation. As you can see here on the slide to the left, the future capital allocation priorities are listed here. The first three one is around protecting the current businesses that we have today. We have named the first one, keeping the business running, and that basically means with 80 factories around the globe, there's a need to make sure that our machinery is fully up to date in order for us to be relevant and competitive to our customers.

And that is extremely important. And you can also see we've tried to look at the last 5-plus years, what have we actually spent in this area. And that is where we are spending the most of our money. And that is to make sure that all the factories that you'll hear some of the CEOs talk to that as well, they have up-to-date machinery to be competitive, to make sure we don't have breakdowns because in a fairly low-margin company, breakdown is crucial to profitability. So that cannot happen.

The second one of our priorities is expansion CapEx in our current businesses. And the reason for that is that we want to make sure that our assets besides the machinery sweat as much as possible. And it is still cheaper to do expansion, if possible, in current factories than it is to build bolt-ons or new investments. So that's the second priority.

And then the third one on our existing business, that is do bolt-on acquisitions. We have done that quite a lot as well. We have done it in GPV. We have done in Hydra. We have done it in BioMar over the last 5 years. And we now have what we believe sufficient capacity within our existing factories and footprint in order to cater for the growth trajectory we are on.

And then finally, at the top of the line here, you can see stable increasing dividends to shareholders. And that's because, as Kasper mentioned, we have maintained and kept our dividend policy, and that is to have either stable or increasing dividend.

And the reason for that is that we want to award the long-term investors that we have, and we believe by having that dividend policy, that's the best way of doing that. That's a lot of money we're spending on top of the line. And of course, if we have more and currently we have, we also believe that share buyback is a very good way of providing value for our shareholders.

We have spent DKK 2.3 billion on that within the last 5 years -- sorry, on dividend, plus DKK 1 billion on share buybacks. So more than DKK 3.5 billion has been paid back to our investors over the 5 years. And within just the last year, we have paid approximately DKK 800 million in dividends.

And with the recent or the latest share buyback we have for this year, that totals up to DKK 800 million. So a significant amount of money is going back in that way. New platform acquisitions, we actually haven't had any in these 5 years because this is up to Q2. But what we are trying to show here is what are we then paying for new platform.

And for Spectre, we have then paid around DKK 900 million for the 75% that we have acquired. And then Jens always say, if we can't find somewhere to put this in, if we can't find good expansions, good bolt-ons, new platforms, then of course, it has to be paid out to the shareholders in the long end. But that's not where we are right now.

So I think it's for us really, really clear how we prioritize it. And finally, I just want to touch on, as I mentioned before, what is actually the financial impact of doing the IPO on Schouw. We have had some comments on how does it actually -- what does Schouw look like? How does it actually impact your financials? And it's not like -- it's a big thing, but from a financial perspective, it's not like a lot is actually changing.

As I mentioned before, revenue and EBITDA, there's no change. There's fully consolidated into our numbers. So what the revenue and EBITDA was from BioMar going into Schouw before the IPO is still the same after the IPO. There will be a noncontrolling or minority interest in the balance sheet that will increase. And that's, of course, because now 26% is owned by somebody else. So that's what we have to account for.

And then the biggest change is actually on the net interest-bearing debt, where we, prior to the IPO, had around DKK 5 billion net on the entire group level. And now we are down to DKK 2.6 billion end of Q2 due to the proceeds coming in. It's a little bit different. You can say, well, now you don't own DKK 2.6 billion, but we are splitting it differently because BioMar has their own funding, their own leverage targets and so forth.

So when we listed the company, that was with a leverage of 2.0. And that means that BioMar needs to have around DKK 3 billion of debt in their balance sheet. That also means that in the rest of the company, as we total have DKK 2.6 billion, we have a net cash position.

The individual company still, no changes to that. So they have a debt of DKK 4.9 billion, and that basically leaves the residual cash in the parent company of DKK 5.6 billion. And that, of course, we are placing wherever it makes sense. But that's kind of -- so that's what it actually means to our financials. So not that many changes in reality. And Kasper will now talk to a little bit about on what does it then mean to the share price or the share value.

Sure. As Thomas said, one of the reasons of doing the IPO was to increase the transparency. And with the listing of BioMar, then at least it's very easy to see what is the value of the 74% of BioMar that Schouw & Company holds today.

We have the market cap. And on the chart on the left here, we can see that the value of our BioMar shares have in the period since the IPO in May been fluctuating between DKK 8 billion and DKK 10 billion. That's something we can read in the newspaper or in the Bloomberg terminal.

In that context, the other businesses, and now I'm trying to be very simple here. The other businesses are still a little bit more of a black box. Some would say Schouw was a black box before. Now we have taken half of it not being a black box. But if we take a very simple approach saying if we want to do something similar to looking up in the newspaper, what is the market cap of BioMar, try to figure, what is the net asset value or the equity value or the modeled market cap for the 6 other businesses, then these 6 businesses combined have an EBITDA of around DKK 1.5 billion.

In these 6 businesses, there's a net debt of around DKK 4.9 billion. And if we just make a simple assumption saying that they have an enterprise to EBITDA multiple of 8x, that means that there is a net asset value in the 6 remaining businesses of around DKK 7.5 billion.

Then as Thomas said that given the treasury structure we have, given that we are both owners of our businesses and also bank for our businesses, we have a capital structure, which on a group consolidated level is a net debt position. But in the parent company, right now, there is around DKK 5.6 billion in cash.

So to make this transparency model work, then it is to say we have the value of the BioMar shares, we have the value of the other businesses. We have the cash we have in the parent company. And on the chart here on the right is then trying to say this is then the sum of it. And in this highly illustrative model, that means that the market cap of the net asset value of Schouw & Company is DKK 22 billion.

And this morning, I think we were trading if you subtract these 11% treasury shares that we have, that the market cap is around DKK 18 billion. And of course, it's not our purpose here today to say that this is right or wrong or if this reflects the outlook. But at least I think Jens will now talk a little bit about what is then the outlook for the businesses. And then it's, I guess, up to the market to try to put a value on it. So Jens, please go ahead and talk about the way to 2030.

Thank you very much, Kasper. And I think after all this very technical stuff, it's good for me just to free ride a little bit on strategy and so on because there you can only speak about future, but you can't promise that future will materialize the way it does. I think quite interesting also very good, I think the capital allocation prioritization as Thomas came up, we have been working a lot on that over the last year.

I'll just show to you our new strategy plan, we call it Expand 2030. I think the words even say something that we intend to continue to grow and expand our business. It will build on our actual strategy. But also, I think we will not think -- we will definitely be more prudent and stringent on the capital allocation.

I think also we will start pushing our nonperforming companies a little bit more, showing also before on Borg, how to really work when things doesn't run the way we expect it. We will continue to have the longer view. We still think it's the most important thing for us is to really take a longer view, but push hard on daily operations.

And then, of course, very important also in the period to secure a relevant and what I call best-in-class portfolio. I think that's very important for us. So we just want to fine-tune the model and continue to operate on a daily basis, I always say to everyone, as long as we do things a little bit better every day, then it's 365x better every year. So there's a lot of things to work on in these kind of companies we have.

Let me just show the -- what we are standing on. So that's our portfolio. Kasper mentioned that we will have a presentation today of 3 very -- of the most interesting companies. I have to say we have 7 very interesting companies within our portfolio.

A lot of things happened since you saw that, and you can see from your side, yes, from here on the left side, BioMar being listed, so a new life within Schouw & Company. And then on the right side, Spectre, the new kid in the portfolio. And we have not acquired a new company since 2017. So it's the first time we acquired a new company into our company.

And of course, a lot of expectations to that, not to put pressure on Lars sitting down, he will come up later on, so then you can challenge him a little bit. But 2 very important changes to this platform in 2026. I will not make a deep dive into any of these companies.

We will have the 3 CEOs coming and then just a very, very fast flip through the 4 other companies. And I think if the CEOs of the 4 other companies knew that I'm going to speak 1 minute about each, they will be very insolid. But we have to do that because of time.

BioMar, still very strong position in our portfolio. We own BioMar to hold and participate in the long-term development of that company. We really see BioMar challenging the position as being #2 global fish feed producer within this we call high-value acquafeed for high-value species being very innovative, having full focus on innovation and been driving that for quite a long time, also accelerating into technology for farming and things like that.

So a lot of things is going on with BioMar. I won't go into it because there has been a very transparent process with the IPO, 220 pages prospectus and so on. So I think everyone knows quite a lot about BioMar. But it's in our portfolio, and we intend to keep it there.

Then we have Borg just elaborated on it earlier, Refined for Future plan is there to deliver a strong profitability uplift, footprint decisions made, closed down in U.K., reduced number of FTEs, innovation platform, a lot of things is going on.

And I'm pretty sure -- I'm not pretty -- I'm very sure that the momentum is there and we'll be back on the expected return on invested capital, and then we will see what -- how we deploy strategy after that. Then Fibertex Personal Care, a company that has been with us for a very long time since 2002, being a strong cash provider to Schouw.

We never came with any capital to Fibertex; they have financed their own investment, their own journey. They are challenged in Asia for the time being. We have overcapacity out there, came out after corona, a lot of things, a lot of competitors also installed new capacity because the market was booming.

But as we speak, 12 million babies less born in China on a yearly basis, that's really something that means a lot for a company like that. We're pushing hard on innovation. We think that innovation is the key to unlock more volume into Fibertex Personal Care. Of course, we also think that the consolidation will continue and maybe at a larger speed in this business, and we need to be there if things are happening around that company.

Last, Fibertex Nonwovens also out of -- since 2002 and the company we split Fibertex into Fibertex Personal Care and Fibertex Nonwovens. It has -- we are transforming Fibertex Nonwovens now. They have been through a tough period. And we have also, to be honest, that we invested too early on the back of very, very strong volume and things in -- during the corona period. But we have a strong plan in place. Momentum is really strong, delivering as we expect, and I also really expect a strong uplift from that company. See it as a future growth case within Schouw & Company.

And they have capacity in place. They have innovation in place to secure next level and this return on invested capital uplift. So a lot of things is going on in that company. I won't spend more time on that. Then just looking into each of our company because they are the platform for our 2030 strategy.

We have clear targets here. We show you the targets on the operational profitability and EBITDA levels. I won't go into each, you can see there, there's a clear target for each of them, and that's what we expect our companies to deliver on. And if they don't deliver, we need to see plans and actions to secure that we can deliver on this.

Of course, there are other targets than just a simple EBITDA target. But that's what we are measuring the companies after. We have a lot of firing power in place. They are all -- and I really have to say they are all very well invested, newest equipment, a lot of capacity. They are running very solid commercial excellence plans. I think also very important here that all our companies solution providers, stickiness with global customers, been with our customers for a long time.

We have -- we see now scale effect from our big footprint decisions and so on. And all of them really run and operate a very clear strategy. So standing on these 7 strong relevant companies, then let's just show you our one page on our Expand 2030 strategy.

And as I say, it's an expand, it's an offensive growth strategy we are having. The model is not changed at all. We are squeezing in on some things, but we expect at organic to grow 5% to 7% year-by-year. And all of you and most of you also know turnover within Schouw & Company can be quite difficult because we are operating a big raw material platform and raw materials fluctuates up and down, proteins for BioMar or polypropylene or whatever, but still 5% to 7% organic growth expected. This 5% to 7% organic growth is expected to deliver DKK 4.5 billion EBITDA in 2030, around 10% EBITDA margin. We will continue to drive and develop our portfolio.

We had a structure -- this plan was developed in January this year where we said we think 1 to 2 structural changes will happen within our portfolio. We also expect to see 1 to 2 new platform investments. One is already made, Spectre; one structural change already made, BioMar IPO-ed. So -- but also just to tell you, we know that the portfolio is dynamic. A lot of things is happening, and we need to be open on that.

Then we will keep our actual capital structure, 1.0 to 2.5 as leverage, feel we call it our comfort zone. We like to be in that comfort zone. And still, we have a lot of room there. Won't go much more into the rest, but also, of course, focus on generating strong free cash flow.

And maybe the reader that can read what is small down there in the note that return on invested capital, we have moved our return on invested capital target from a return on invested capital exclusive goodwill into a return on invested capital, including goodwill, 15%. We keep the 15% level, but changed the goodwill way there.

So I think that's important message also that we are going to push even harder into our portfolio companies that we want the return on invested capital, including goodwill to be delivered at the level of 15%.

Okay. Is that just something we have pulled out of the sky? Or how do we really intend to deliver the 4.5%? I showed you the requirements we have on each of our portfolio companies and then try to bridge it here. This year, we expect DKK 3.1 billion to DKK 3.3 billion in EBITDA. And then how are we then expecting to come down to the DKK 4.5 billion? BioMar is going to deliver other businesses and then Spectre in as the new company.

Key levers, as I already elaborated a little bit on, we have capacity in place. We don't need many investments to do this. We have a very, very strong customer portfolio. I can't remember we have had an order backlog, long-term order backlog as strong as we have for the time being, also meaning that global customers really want to work together with a strong company.

We have -- we are solid, we are responsible. And then also, I think our solution provider strategy is super good, building on innovation and then, of course, also strong leverage from our scale and footprint decisions.

So with that, just finishing off saying that the Expand 2030 EBITDA target, DKK 4.5 billion is based on organic growth on the present platform. No acquisitions, nothing in that plan. Do you then intend to do acquisitions? Yes, we do, but we can, of course, not say if it materializes because we are not committing ourselves to acquisitions that are not margin enhancing or value creating.

Two types of investments you will see. The one platform acquisition, I said maybe one new platform acquisition in [ Expand ]. Don't know if it will materialize. very, very clear criteria for how are we going to do that, which we are going to acquire a new company. And then bolt-on acquisitions, we are very eager on bolt-on acquisitions because that we can put into a company we know. It's well proven. So a good way to do that. Also a clear focus on how do we do that.

So all in all, we have a lot like that or we have sufficient firing power within also our capital allocation priority strategy to continue to be acquisitive and to be in the market. And I say we are merchants and we are ready to take an opportunity if it shows up. But of course, it has to create value always with that in mind. So -- but I think also -- and Thomas introduced our new capital allocation priorities, and we are going to stick to them and to be very loyal to that.

So finishing off saying we are proud owners of leading business-to-business companies, and I think there's a safe and strong home within a strong company for companies like that to create value for shareholders also in the coming years.

So on that note, I think we will hand over to Kasper.

Yes. And we will now open up for questions. We will have questions in four sets. There will be the opportunity to ask questions to what's just been said now. And then also after each of the 3 CEOs, we will have a short Q&A session. And the good news is we are on time. So there is around 10 minutes now for questions. [Operator Instructions].

Claus Almer from Nordea. So the first question goes to the CapEx. You said you're very disciplined and you also have this long list of things you want to do, but there was no numbers. In the past, you had some return criteria for CapEx. So have you skipped that? Or what is actually your disciplined approach to M&A and inorganic CapEx?

Thomas, maybe you can elaborate a little bit on that first.

Yes. So of course, it's difficult to say exactly what's the exact target because the targets are different from the companies to the companies. The overall targets we have up here is what we believe we should be. And as Jens mentioned, whenever we invest, we believe we should have at least 15% ROIC on our investments, now including goodwill, which basically elaborates to 17%, that was previously 15%. So we have increased that with approximately 2%.

The individual bolt-ons or the individual CapEx expansions, whatever we do will be dependent on in which company it is and within what segment or within what product type it is. So it's a little bit difficult to say it's just one number. But the individual companies have their own strategy plans with their own targets. So for the next 4 years, they will have their own.

And you would say also, Thomas, maybe we'll get a little bit into it later on. But of course, every investment CapEx M&A, whatever, especially CapEx investments, et cetera; will, of course, be based on very solid business plans, and they need to deliver on the return on invested capital.

We also know and you know also, Claus, that big CapEx investments that like in a staircase and you can't fill up the volume immediately. So you need to step the stairs before you full up and then you will deliver the return on [ risk ] capital.

But to be honest, I don't -- and that's very dangerous to say now, but I don't see very big CapEx investments in this Expand 2030 period. Of course, if something very attractive, interesting coming up, we look into it. But we are prudent on payback times and so on.

Yes. So that was actually my next question. Given significant CapEx over the last 5 years, you must have ample available capacity and up-to-date production lines across the portfolio. So CapEx must be limited in up to 2030 from what we can see today.

You're right. I would say where we have ample capacity mostly, Fibertex Personal Care, Asia. Fibertex Nonwovens, we had in U.S., we are starting to fill it up. Really, we are setting a new line in work late 2026 in the Czech Republic. As I also said, we have, I think, the strongest order backlog we've ever seen across the board.

So of course, we are -- we have capacity. But if you look at the other companies, I think [ HydraSpecma ] will tell a little bit about they are also running at full steam, GPV, the same. Spectre just build a new factory. They opened a new factory #4. I won't take the glory from Lars, will tell on that. But we have, of course, capacity. I don't expect big capacity investments in the period.

Other questions?

[indiscernible] shareholders. Your target for capital gearing, net interest-bearing debt over EBITDA is between 1 and 2.5. That seems to have been the same target for years. What is the reason you're immune to the movements of the interest market? So whether we had negative interest levels or we have positive interest levels, it's still the same gearing you have and interest levels are coming up fairly quickly.

As we speak, yes, it's the same level. And I think it's very healthy to have that level, and we call it our comfort zone also because then you can't just go out in a very, very big investments and leverage yourself too much. We have tried that many years back, and I think we have lessons learned.

But also, as I say, we -- one of the key issues in our ownership wheel is that we can allocate capital whenever needed and to who needs it. Of course, it needs to be right good priority for business, but we need to be able to allocate capital, and that's why we have that band. I don't know on the interest rates and so on. Thomas, how...

You can also say on the range we have, it is a wider range, 1% to 2.5%. There's quite a lot of big amounts in that spread. And for a couple of years, we have been closer to the 2.5 than the 1, which has made it a little bit impossible to do the big add-ons, right? And now we are lucky in hopefully in a good position to be able to go up. So I think it's a fairly broad span, and it gives us the possibility to be if you want to be in the lower range or in the upper range, depending on the interest, I would say.

And honest, for the time being, we are below the level and sometimes we'll be in top, of course. And when we are below the level, that was also why we started our share buyback thing. So it goes hand in hand.

And being long term mean that you have something that holds for many years. Emil also has a question.

Emil Haargaard from DNB Carnegie. So on the organic revenue growth target of 5% to 10% on average towards 2030, can you elaborate a bit on how much of this target is based on the underlying end market growth across the portfolio companies versus your expectations for market share gains?

Yes. Just to -- somebody [ said ], it's 5% to 7%. Of course, market share gains is difficult to say. We are on a good journey with all companies and working also for more share of wallet in a lot of the big companies where we are, we can not easy, but sometimes easier to go in and could we have a larger share of wallet with you and so on.

So -- and as I said, order backlog, very strong. Bo will also elaborate on that for GPV. Sometimes we are looking 2, 3 years ahead. So it's based on not actual order, but on requests from customers and saying we are not taking a lot of market share, to be honest. We're building on the customers we are having, but also looking into new. And there's a lot of new customers also wanting to work with us.

And the 3 companies coming to present later will elaborate on that.

Ulrik?

Ulrik Bak, Danske Bank. Also a question on your revenue growth of the 5% to 7%. What assumptions have you made in terms of pricing? Because as you said, there is a lot of pass-through in some of these companies.

This is with a steady -- with the world we know now. So if raw materials goes up like in BioMar, then it will hike. If there will be allocation in GPV, then it will increase. So this is how we -- the world we know now is the foundation for that.

It's much more based on also volume. The world we know and then volume, as I said, we expect volume to grow, but it's difficult sometimes to really put it into turnover figures. You will also see with GPV 2 years back, they had DKK 10.4 billion turnover, and that was based on pass-through pricing and things like that. So it's a little bit difficult within Schouw & Co. to get a specific number, but volume will grow.

And then another one on the EBITDA margins that you showed on the slide. If I use the 5% to 7% revenue growth and the EBITDA margins per portfolio company, I get to an EBITDA closer to DKK 5 billion versus the DKK 4.5 billion. Is there anything I'm missing in my math? Or -- because I also saw that the EBITDA margin targets, it didn't say a specific year. So is it that beyond 2030? Or how should we look at it?

I think that's your calculation. And we also know how we calculate. So maybe we have two different calculators. But yes. I feel very comfortable on that number.

Sindre Sorbye From Arctic in Oslo. Just without alluding too much into near-term developments, but your answer now said that these revenue targets were on current conditions. But isn't it so that -- I mean, if it goes from '26 to '27 with current -- under current circumstances, you will have a large gain in the top line from pricing cost, I mean, everything what happens in the fish feed industry and also in GPVs market with all this tightness on PCBs and semiconductor and components.

So I guess I'm just taking the current prices at last year's turnover, you would have actually maybe 10%, 15% kind of artificial uplift. So is it based on, let's say, last year's prices or...

Current price level as it is.

Okay. So we will have some windfall, of course, not in margins, but...

You know also a lot about proteins and things like that, how it fluctuates. We have an El Nino for the time being really going -- some proteins going crazy, but then you need to substitute. And honestly, of course, revenue is very important, but it's something where we say we cannot be too firm on that. We can be firm on volume and development and business growing on volume, and then let's see what happens on that.

Okay. So 5% to 7% is mainly volume?

It's volume, yes.

Yes. Okay. Fine. And then on the platform investments and the evaluation of the platforms, I mean, you mentioned Borg, but a couple of your other businesses haven't really, let's say, performed that well over time. And you specifically mentioned FPC that you thought consolidation would come. Should we think of you as the consolidator or the seller?

That's a very precise question. I said we are always willing and open to participate or drive consolidation if it makes sense and create value. So we'll be there if something happens.

Okay. And secondly, 1 to 2 platform investments, but this is the first one in close to 10 years with Spectre. So I mean, should we expect you to, let's say, integrate Spectre successfully and see what happens there before we could expect to spend even more of the BioMar revenues on another platform near term?

It's also a good question. I think I said also, we are merchants. If a great opportunity comes, then we will consider it and then we'll see what to do. We are not locked in a governance box. We need also to see what creates most value for us and for our shareholders. And so we are open-minded on that.

But we are not, to be honest, actually pursuing a new platform investment for the time being. Now we first need to see what happens with the one we have. But things happen. A lot of -- the world is moving fast for the time being, yes.

And the last question for this session, I'm the timekeeper. So Yiwei, please go ahead. Yiwei from SEB.

Also on CapEx, could you maybe talk about your current manufacturing setup in terms of automation? I'm a bit surprised that you mentioned that you indicate the big CapEx is behind you. I mean the largest competitor now to Europe, China. I mean we see a lot of Chinese companies now entering into the next phase of manufacturing, a lot of digital platform, a lot of smart manufacturing. So what status on your portfolio companies?

And maybe I can just overall say, you also -- CapEx, we see that as capacity -- as a big capacity extension. We also saw that Thomas showed was it DKK 2.8 billion or something we spend to run the company on a yearly basis, I think our maintenance and maintenance is just screw and bolts and so it's, of course, also digitalization and a lot of that close to DKK 1 billion.

So we will -- we continuously invest in automation, in digitalization, use of AI, et cetera. Maybe also the 3 companies coming will elaborate a little bit on that. But -- so you are right, but we are also on the ball on that.

So I think we will stop for questions now. There will be plenty of opportunities for further questions later. We will have a 10 minutes break, opportunity to get more coffee. Also use the break to see the exhibitions from our businesses. We have a selection of what the 3 businesses here are doing and should be fairly easy to look for yourself and -- but also feel free to ask any of us from [ Scotland ] for the businesses. But let's meet again at 10:45.

[Break]

Now we will hand the word over to one of our CEOs, actually the newest kid in town. Lars, just in from Spectre from our newest acquisition. Lars, fairly new CEO in Spectre, fairly new to Schouw & Co. So a lot of expectation. Lars, please go ahead.

Thank you. Thank you very much, and thank you for allowing me this opportunity to present Spectre today. Actually, I have a question, how do I change the slides? Thank you. Before I get really into the case, and let me tell you a bit about what Spectre actually do.

So we are developers and manufacturers of technical outdoor garments for the active lifestyle. And what we do is just a couple of examples here. We work with your base layer. We work with the mid layer and we work with the outer layer. We are especially good in the mid-layer and the outer layers and examples here of the products.

This is an example of a highly technical Gor-Tex jacket that we create. And you will find when you look through it that there are many, many details in this. Actually, we use 17 different machines and 96 people to create products like this.

In the other end, also actually an outer layer, but for a very different purpose for trail running, for really elite runners, you have something like this here, also a very technical product. If you feel it in the [ break ], you see there -- you can hardly feel the fabric. It is so, so light and you can imagine sitting in a production trying to put this together.

This is actually taken just this week from our newest factory in Vietnam, where you can see the team working on this style. It takes a lot of partnership, it takes a lot of skills to be able to put this together in a very nice way, lots of technical skills in the back.

Might be difficult to see from a distance, but we have laser cutted the brand logo in the back of the shirt here. So if you wear a white T-shirt under, it will stand out. So you find in many, many details in the products and maybe many capabilities needed to do the products.

So to tell you a bit about why we believe that we have an interesting future ahead of us in Spectre, we have an interesting market we operate in. We are building our business on long-term partnerships, and we have built basically the platform to deliver on our 2030 targets.

So today, I'll tell you more about why we have been chosen by the brands, how we will grow towards 2030 and what we prioritize to get there. And if you have questions along the way, you can ask questions in the end, but you're also allowed to just break in, just raise your hand if there's questions, then I will answer to the best of my abilities.

Spectre at a glance, we are actually a company with quite a long legacy, almost 80 years old, established in Ikast, in Denmark, where we are still headquartered. I have a fantastic team around me in Ikast. It's a rather small team. We have 40 people only in Ikast, where we focus on sales, customer relations. We have senior management, and we have supply chain capabilities, which is very important in our industry, very important for how we interact with our customers.

Then we have 5,500 colleagues in Vietnam. We operate 4 factories. And with the new ownership in scope, we are changing our fiscal year from something April, March to calendar year. And when we look then at the 2026 calendar year, we expect to do DKK 1 billion revenue with this EBITDA margin of 15% to 17%.

Introducing our market, if you look at the total global apparel market, it is huge. And within that market, there is a niche of functional apparel. And within that niche, there is a function of premium outdoor apparel, and that's where we mostly operate.

We see that our niche is a growth rate that has been stronger than the general apparel market. And we also believe that, that trend is going to continue because we've seen surveys that more and more people engage in outdoor activities, and we also see that more and more people identify themselves with this active lifestyle and wearing sportswear also many other settings than on the mountains.

I think many of our Gor-Tex [ jagers ] will never make it to the top of Everest, but then they might make it to a [indiscernible] in Tokyo.

Our segments, we serve 4 segments. And when I say 4 segments, it is with a very heavy weight on the outdoor and mountain segment. This is our core. This is where we are coming from. This is where we're really strong and have by far the most of our business. One of our fantastic brand partners here is Arc'teryx.

Then we have high-intensity sports is really growing for us. We see a lot of trail running, a lot of running around the world growing with focus on intensity and performance. So this segment is growing quite significantly for us, and we also see ASICS as a real winner in this market.

Hunting and fishing is a smaller niche with smaller players, but we see more and more people wanting to have dedicated apparels for exactly their sports.

And then we have something very small in workwear and it's not a big part of our 2030 strategy, but it's just to show one of the examples of where we could perhaps also grow longer term because there is a lot of similarities in something like workwear to what we actually do in this high-performance outdoor clothing.

Our place in the value chain, you will find in one side of us, you have the people doing the fibers and doing the textiles. And in the other side of spectrum, you will have the brands, the ones being passionate about creating the product and designing these fantastic products for the outdoor people. Those are our customers, of course.

And they engage with someone like us. We do a lot of co-development with the brands. So that means that basically, you can imagine that a brand comes with a product and say, I have this idea of this fantastic product that we have to bring to the outdoor and they have a design for it and they have some technicalities specified for it.

And then they use someone like us to codevelop the product, turn it into an actual product, finding out how do we make it, where should we so and where should we cue and how should we put the product together.

And once it's done, we take care of the manufacturing. We have a long legacy with our partners, 13 years of average cooperation with our partners, more than 20 years with our longest-standing partners because we build these close cooperations where we get to know each other and we improve together how we work on the products.

We are largely protected from material cost deviations because a big part of the materials is the fabric. So for example, this one here is a Gor-Tex fabric that is made of, and that fabric will then be nominated by our customer. And that means we still handle it. We still sell the full product as an FOB price for the full product, but the pricing of the of the fabric is done by the brand. So that largely passes through.

We have a long planning horizon, and this is a little busy slide, I'm sorry, but this is basically just to tell you that it is not about that someone just comes and say, "Hey, I have this product. Can you show that tomorrow?" And then 5 days later, I pick it up and "Thank you, that's my product." No, no, when we have a new product that we start with, then we have this -- this is actually an example and you see on the table.

This is a tech pack. This is 70 pages of technicalities that the brand has done, and this is the product they want. But coming from this to this, there is a way. So we translate this into something that can be actually shown. We do a prototype. We will often have workshops with our partners. They will come and visit us in Vietnam.

And we go through the prototype, we take corrections, then we make another round, we do samples perhaps. And that means that from the start of products until we are actually delivering the bulk production, it will often be 1.5 years. That gives us a fairly long running, but it also gives us a good visibility on what we do.

And then on top of that, we have something that the fashion industry doesn't have because we have 60% to 70% of what we do is carryover styles. So a lot of the styles we do, they carry on season after season, and we can optimize it together with the brand, and that creates the stickiness in the relations that we very much like and value.

So looking more towards the actual business, and I'll show you some numbers also in a minute. The reasons why customers choose to work with Spectre, we do believe that there is something about us being close to the brands. So most of our brand partners, they are Western companies. And we are headquartered here in Denmark, where we also have affinity in Germany and in Latvia.

Our main competitors, they are all Asian companies. And of course, they are good at what they do. And of course, there's a strong competition. So -- but we have something about being close in mind and culture and geography to the brands. That's something where we can build relations and we can work closely together there.

We are known for very high quality and very strong technical capabilities that together with this co-development also kind of lock in the brands that if you want to do new complex styles, then we are definitely a preferred partner.

And then we are frontrunner on responsibility. Responsibility has been a core part of Spectre. Spectre used to be family-owned, right? And it has been part of the family's DNA for so many years that we want to do things in the right way. And also in this industry, we want to be the ones who change how and improve how apparel is made. And I'll come a bit back to that later because we do believe that, that gives us a specific edge.

This strategy has improved the business quite long -- quite well over the past years, strong growth even if you go 10 or 20 years back in time, and here is just the most recent years. We've seen a big COVID peak and then a market-wide decline afterwards. But in general, we see 22% annual revenue growth. And with this EBITDA margin, 15%, 16% is where we are able to perform.

In the past year, we have made the foundation for our future growth from this new base. We have implemented a new ERP system. So we now believe that we have the state-of-the-art ERP system for our type of business. We have D365FO implemented. So we have that platform in place. Then we built a new large, our most modern and largest factory in Vietnam. And that means that we have the capacity also to deliver on our 2030 ambition.

And then we secured this wonderful new long-term owner, and we're extremely happy to be here today with the link to Schouw & Co. We see a great cultural fit in this relation, and that gives us both strategic advice, gives us someone to talk to about our thoughts about how we want to grow the company, and it gives us some more muscle also to target new opportunities and perhaps even bolder opportunities when we move ahead.

So our 4 factories that we have today, the first factory in Vietnam was from 2016. That's our headquarter in Vietnam today. Also, and that's where we have our development team. I didn't mention that, but actually, this team developing the close here, it is 100 white collars just involved in preproduction, as we call development that we have here, very specialized people.

Then we have another factory that came online in 2021. And actually, this year, we extended that factory to double size. That's the only factory that we don't own ourselves. This is a rented factory. So -- but that was extended. So we have opportunities to grow there.

We have a large factory in the south of Vietnam. And then we have this new factory that came online in July and the pictures before of the nice colleagues making this was from this new factory here. It is scaled for 3,000 employees. We opened it in July. We opened the first line. And last week, when I was there, we have 500 colleagues now working there. So I think that that's a scaling that we could not do in many places in the world.

The ambition towards 2030, I said this year, we expect DKK 1 billion, and then we are looking into something in the direction of doubling towards 2030. We say DKK 1.7 billion to 2.0. That is kind of our target range we are shooting at. And of course, how to get there driving growth is very important, and I'll tell you in a minute a bit more about where that growth is going to come from.

Still increasing competitiveness is very high on our agenda, and we look more and more towards digitalization, but also automation in the factories. And this new factory that we built will be kind of our flagship factory to showcase what we can do step-by-step in automation, then building team and culture and keeping our lead in responsibility.

Looking at where the growth will come from, we have -- most of our growth and the most important part of our growth is from these long-standing partnerships. So we think that there's a really good base in that.

We believe that 60% of our growth towards 2030 will come from partners that we work with for many years, and we know each other very well with several of them, we have this kind of joint business plan we call them, but we try together with the brand and envision where will the brand be in 2030, how will we be a part of getting to that point and then doing a joint forecast. Of course, there's some dependency on the brand actually performs, but it gives us a very, very good planning horizon.

Then in recent years, we have onboarded 8 new brands. And they are now in this ramp-up phase that you saw before. We believe 25% of the growth is going to come from these brands.

And then only 15% of the growth is going to come from all new brands that we don't serve today. So that's not so big a part, but we have a funnel here to work with these brands and try to get in the next right brands. And it's a very important task for us in terms of securing the growth also after 2030 because that's where these ones should be the one kicking in and come over here.

Then with our new ownership on top of that, we will also be curious on M&A opportunities. We don't have to do M&A. We do have a lot of organic growth opportunities, but we do see some interesting opportunities that we -- that could be interesting to explore further on the M&A.

When talking about growth, it's very important for us also to remain focusing on what we call responsible growth. And that actually means that we also have some demands on the partners that we onboard because we truly believe that standing out as a responsible company in our industry means something. So we would like that the companies we work with, they also share this ambition of being responsible.

And I'll not take you through all of this, but we work across people, environment and then really trying to be the ones leading the changes in the industry. And we use renewable electricity. We have LEED Gold-certified factories. We reuse our waste.

And when it comes to people, then there's something about paying living wages, not a minimum wage, but paying living wages. We are 93% that gets the living wage. Of course, we wanted to be 100%. The trick is when we onboard so many new people to get them ramped up, but the industry standard, that is 30%.

Then our factories are fair trade certified, and that means that a lot of the revenue we do also accumulate a certain bonus amount that we then allocate for societies, for our colleagues and for their families, societies and do events where we kind of pay back to the communities that we work in.

We would like that the brands we work with also want to take part, if not in all of it, and at least some of it, and they can really benefit from working with us in terms of building their own credibility and their story to tell how they are going to make sure that the ones going in the outdoors enjoying nature is also supporting nature with the products that they buy.

Looking at risk, we are focused on customer risk. We only serve 20 brands today. And for us, that's a wonderful way of keeping complexity at a reasonable level, so we can really focus working closely with our partners. Of course, there is some kind of risk then, as I said, to the brand's performance, and we mitigate that by integrating very deeply with the brands. And then, of course, we have this growth strategy that we would like to add more significant brands in the years to come.

We also have just one production country that is Vietnam. We try to mitigate that by making sure that we have global shipments. So in terms of geopolitical risk, we ship to so many countries that we are not too exposed to one country. We have around 20% shipments to U.S. So there's a limit to how much we can be hurt by specific countries initiatives.

Our factories are spread across North and South Vietnam. So that also gives us some range there. Ideally, in time, we would love to have more geographies added. Paying attention to scaling the organization and never fail as we grow is a core focus as well.

So in summary, we believe in Spectre that we operate in an attractive niche. You can see we have 1% to 2% market share, we believe. So we have a lot of white space. We have a lot of opportunities around us. We believe that we are in the right place of the value chain where we have the brands on one end and the textiles on the other end, and we work with some of the most technical products that you'll find there. And that's where we see -- you can also do the best business in this area because it is highly technical.

And then we believe that we have the platform to support it with the right partners and with this full service model, our own very new factories. Remember, our oldest factory is 10 years old. So it is very new factories that we operate, and you'll see that when -- if you ever visit them. We are frontrunner and responsible business, and we are building on this good revenue development, and we have also with that, a good visibility for the years to come. Thank you.

I think we will open up for questions to Lars. And again, state your name and where you come from.

Yiwei from SEB. Two questions from my side. Firstly, could you talk about if you have lost any customers in the past?

Yes. We have lost very, very few customers. We have offboarded a few customers that we onboarded that we thought was then too small or the fit was not right. So that can be kind of a natural part of that. I think we lost one customer during the COVID time during this extremely high boom that was there where probably it was hard to satisfy everyone in the right way. But there is -- that's basically what we have seen. So in general, we do not tend to lose customers.

Okay. And how often does the brand partners shifting their partners like you? And what is the motivation for them to do? I get it's a very competitive market you mentioned. And I guess the cost of changing partners is quite expensive.

Exactly exactly. It's a good question. And that's -- it's both good and bad actually because the brands tend to be very, very loyal to the ones they work with. They are actually also many of them reporting on not changing partners because they also feel that there is some loyalty in working with the same partners and improving like that. So we find brands like [ Petragoni ] and many other brands strategically, they do not seek to change partners. So in that way, it is very, very stable.

What we normally see is that when we have the opportunity then to onboard someone new because that's also that could be hard, right, because people are not looking for new partners. Then it is especially with the brands that is growing or expect a lot of growth that needs new partners. That's where we have the best opportunity to come in. And it's an important part of our task is to kind of choose the right partners because there are winners and losers on the brand side.

Claus Almer from Nordea. So as you said, it's difficult to attract and lose clients, but you also mentioned one of the slides that you want to grow the share of wallet. But I guess that's equally difficult to do that as these volumes are being produced by one of your competitors.

Yes, but that's less difficult at least. That's difficult at least because they have plenty of new styles that they come out with every year. So as long as you can attract your fair share of those, then you have a good opportunity. Then we have also seen and probably still seeing an out of China movement that also hit the industry very much in Vietnam and also help Spectre, and there's also still some momentum in that.

And then with now 4 new -- 4 factories, wouldn't it be smart to have one big and then you could automate? Or automation is not really your thing, is too complicated?

You must remember that these factories, the new one here is 3,000 people. And when you see these areas in Vietnam where we would like to attract people, then it's not in the middle of a big city. So actually finding 3,000 people that is in a fairly good commuting distance, that's kind of a limitation.

So they come in on scooters every morning. We have these huge, huge, huge [ spike ] ships for 3,000 scooters. So if you club everything together and say, okay, we want 10,000 people in one location, we would have to attract from such a big range that it wouldn't be optimal.

So that also means you can't automate reducing the number of employees being involved in production?

Not like 50% or something like that. What we can do and what we are looking a lot on now is on the whole warehousing side, having automated warehousing systems with also placing rolls and picking rolls and transport through the factories. And so those are the things we are looking at now.

You can consider many kinds of various transportation of garments and pieces of garments, cut panels, we call them. And so -- but to automate a big chunk of the zoning, that's hard. We have it. And you will see on some of the products over here, you will have auto selling for some operations, you have auto [ piercing ] and so. But we are still at a level where that's maybe 5% of the zoning activity.

And that will not jump to 50% like that. So jumping to a level where you can just say one big factory, that's too early. I think then we will need [ humanoids ] in the factories.

Okay. Just last one. shipments, that's on the cost of your customers, hopefully.

Yes, we deliver FOB.

Ulrik Bak, Danske Bank. Just a question on the customer concentration. So the top 5 customers, how much of revenue do they make? And what's the duration of these customer contracts?

Top 5, I'm not sure that I have the exact number in my head, but it's at least more than 50% coming from the top 5. And the duration of the contracts, the contracts is actually a partnership. So basically, if a brand would want to offboard very, very fast, then legally, they could do so. But with the volumes that we do and with the complexity size we do for those brands, it will also take a long time then to take it somewhere else, right? So we try to base it on partnerships.

And there's a lot of trust and partnerships in this. And that's more how the whole industry operates than what you've seen in many other industries where you see much, much, much more legal contracts about and who then price to what. We really work as partners where we talk about things, and it has worked very well.

Yes, perhaps on that, the customer contracts, are they exclusive for the entire product portfolio of these customers? Or is it product specific?

And the companies, they will probably normally use 5 to 15 producers for their portfolio. So they have several and some are good for some things, some are good for other things, and they also derisk with [ that ], and they use multiple countries and so for that. So depending on the size of the company, we have some smaller-sized customers where we are doing almost everything that they have, and we have wonderful cooperations on that. And then we have others that are very big, but we do maybe 5% of what they do.

Yes, Sindre from Arctic. It would be interesting to hear a little thoughts about, let's say, what's the capital intensity in your business, the reinvestment needs. But my main question is more about -- you have expanded into -- or you're in Vietnam, you have just made a probably a big investment in a new factory. Whereas when we look forward, I mean, Optimus is coming or robotization, real wages are likely growing faster in Vietnam than, let's say, at least in the Western countries.

So -- and you have -- well, when they're full employed, close to 10,000 employees, how should we expect you to, let's say, keep ahead of competition as a reshoring tariff wars, even though Vietnam is not specifically much hit yet? I mean it's kind of maybe a more difficult landscape to navigate in the future than it has been for the last 20 years.

Yes. I think you're right. There was multiple questions in that. I'll try to answer as good as I can. When you talk about capital intensity, we are around 25% net working capital of revenue. So we do have some inventories, of course, that we have to fund. When you look at the investments in the factories, I think we have an advantage that the factories, they are not that expensive, at least maybe not as you would expect, a factory like this that is 25,000 square meters and is set up for 3,000 people, that's around DKK 200 million investment, including machines in the first go. Then, okay, in time, we want to add more sophisticated warehousing solutions. And so that will add more. But it's not like it's DKK 1 billion investment to do a factory like this.

In terms of competition, I think that's why I said also that we focus a lot on increasing competitiveness. And that is, of course, a demand. We are basically OEM producers also, right? So we have to really stay on top of our game. We have to look into what can we automize, I'm saying, how can we use digital solutions with our new ERP system, can we get more into some also automated AI solutions in how we operate. We have 500 white collars with a computer in Vietnam. So that's also a lot. And even though many of them are sitting very close to production and maybe registering things, it's still a lot of white collars that -- potentially we could look at how can we make more efficient as we grow. And we are lucky that we have the growth, so we can support this in a good way.

So -- but I think in terms of when we look at the countries, we still see that Vietnam is the right country to be in. We don't see salaries going out of bounds right now in Vietnam, and it is a very efficient production country. The efficiency of the lines and the factories is very, very good.

Otherwise, then I would be so happy that we are right on time. So thank you, Lars.

Next up is GPV. GPV has, in our ownership, undergone an extreme transformation. We acquired GPV in 2016. At that time, the revenue was around DKK 850 million for the year. Now it is around DKK 850 million per month. Bo has been with the company the entire time and been heading GPV through this tremendous growth, and Bo will talk a little bit about GPV. Go ahead.

Thank you, Kasper. Hello, everyone. It's nice to be back, and I'm happy to give you an update on GPV. My name is Bo Lybaek, and I'm the CEO of GPV, and I've been that since 2008. When we participated in the Capital Markets Day 4 years ago in 2016 -- in 2022, sorry, GPV was entering a new very exciting period. Since then, we have completed a significant transformation of GPV and built a much stronger platform.

GPV is the second largest European headquartered EMS company, and we have a global strong position in industrial EMS. Today, I would like to explain to you where GPV stands, how we have developed, and why we believe that there is a strong value creation ahead of us. There are 3 main messages that I would like you to take away from today. First, we have a strong foundation in place after a successful integration of CCS Group and Enics. Second, we have a balanced customer portfolio well positioned to capture market share in attractive segments and geographies. And third, we are prepared to take part in the consolidation in the EMS industry. I firmly believe that together, these elements provide a big and good basis for future profitable growth for GPV.

Let me briefly introduce GPV and put it in perspective. In 2025, we reported sales or revenue of DKK 8.7 billion. We are around 7,500 people working around the globe to serve our customers. We're having sites across Europe, in Asia and in China and in Americas. And we are selling or delivering products to our customers into 62 countries. We're producing and we're delivering around 39 million products to our customers every year. We are known in the market for having a very good service offering. And that includes -- and I'm on the top left part here, electronics, cable harness, mechanics, test development, product application design and aftersales service and often box build products, meaning semi-finished or fully finished products.

Our core focus, and I'm on the top -- on the bottom left is high-mix manufacturing of EMS products and quite often mission-critical applications. So we typically manufacture complex products with demanding requirements to quality, to reliability and to flexibility. We are also recognized by our customers. Earlier this year, we were awarded Supplier of the Year 2025 by Grundfos. A few weeks ago, we, from Schneider Electric, got the Sustainability Excellence Award 2026. And I'm very happy about also these recognitions from our customers. So in short, GPV has a scale, and we are strong and specialized with industrial capabilities.

At the Market Capital Day back in '22, we presented a set of priorities. We wanted to develop -- and I'm here on the left-hand side, we wanted to develop global key accounts, growth with attractive customers, further standardize our business platform, optimize our operational footprint and drive operational excellence. Overall, we have delivered on the main elements in this plan, although that the journey has not been entirely straightforward.

In the market, we have been affected by stop for new business and reduction in demand from a few larger accounts related to the Enics performance before the merger. This has affected our reported growth. At the same time, we have won significant new business, as well as gained new sweet spot customers, what we earlier typically named hidden champions. So these customers, they have a size, they have a business potential, they have a segment profile and a geography requirements fitting well to what we are good at, our footprint and our capabilities.

Internally, the Enics integration has been completed in line with the merger plan. We have created a new organization. We have streamlined the footprint. We have strengthened efficiency and productivity, and we have initiated a OneERP journey. On ESG, we have exceeded the original target we set for reducing greenhouse gas intensity, and we have a world-class LTI or lost time injury rate below our target when we're talking workplace safety.

On the financial side, top line has more or less been in line with the ambition. However, profitability and return on invested capital has not yet reached the full ambition level, partly because of the stop for new business that I just mentioned and also because we have had some underperforming selected sites. But targeted actions have been put in place, and we are progressing in the right direction.

If we zoom further in on the key financials and look at a longer perspective, also here, the development has been quite significant. Since Schouw & Co became an owner of GPV, actually, it's 10 years ago, it was in 2016, we have completed 2 transformative acquisitions. The CCS integration progressed relatively smoothly and shown also good tracking on the financial development. The Enics integration was more demanding. The merger happened at the same time as the global supply chain crisis was at its peak, and we were under pressure to deliver Enics past due orders.

Following the merger, we reported, I think Jens also mentioned it, in 2023, a record high sales of DKK 10.4 billion. But in that nice figure, that was also included a significant amount of extraordinary material costs, which we passed through to our customers and of course, also the delivery of the past due orders from the Enics. That is the DKK 1.4 billion at the top. So ordinary activities, they were lower. And as these FX normalized, our reported revenue was declining. But despite these challenges, the combined business today is standing much stronger than before, and we have a super market position.

For 2026, we expect on revenue between DKK 8.6 billion and DKK 9.1 billion in sales and on EBITDA between DKK 710 million and DKK 550 million (sic) [ DKK 750 million ]. That means in EBITDA ratio or margin around 8.3% and return on invested capital around 12%, and it's excluding goodwill. So it's a nice uplift compared to the last couple of years.

During '24 and '25, we have used time to carry out significant structural changes in GPV. And these changes are now paying off. We have adjusted our footprint, and I'll come back to that on the next page. We have simplified and optimized our organization. That means we have reduced white collar in group function and in selected sites. As examples, we have closed offices across Europe, and we have also closed the de facto Enics headquarter, so it is no longer there. So in total, these effects have made our business more efficient, more profitable and the financial performance is moving back in the area what you could actually expect and where GPV had its potential to deliver.

Coming back to the footprint, as I promised. We have a stronger footprint with higher efficiency and higher capacity even though that we have consolidated from 19 to 14 sites. We have consolidated primarily in high-cost Europe, and we have expanded in low-cost and best cost areas. Our productivity is significantly better today than it was, and we have a total higher capacity. This means that we have a stronger, more efficient and better invested setup, and we have a better balance between proximity, really high-cost and best-cost manufacturing.

If I should sum this up, we have a OneGPV with one operating model across the entire company. We have a stronger footprint, It's optimized and it's in good balance. We have a balanced customer base, and I'll come back to that here in the next couple of slides. We have a strong organization, which is future-ready, and we have also been working a lot with resilience. So our supply chain robustness has also increased. And we have a special task force in place also to handle the challenging situation that we have currently on supply chain. So our approach to both the CCS and the Enics integration was to move fast on the customer side. Maybe some can remember, I have said "prompt merger in the market," and then to -- upwards to work with operational integration step by step. This has given us a proven integration model that we can also use going forward for new opportunities.

Let's now turn from the internal to the market. The overall EMS market is expected to grow. The segments where GPV is operating in is expected to grow with approximately 5% per year. Within the market, there are also segments opportunities, which are very interesting. It's, for instance, CleanTech, it's Data Centers, it's Semiconductors and it's Defense. These areas are structural growth areas and they grow maybe a little bit below, maybe a little bit above 10% per year. It's also segments where there are typically high demand and requirements for reliability and durability on the electronic products produced and delivered.

If we look at our organic strategy, we have focused that in 3 dimensions. So it's our customers, it's our segment and it's our geographies. So that is where we play. We want to win new sweet spot customers. I already mentioned this with sweet spot. So that's where size, business potential and segment fits to our capabilities and our footprint. But most importantly, we also want to increase our share of wallet with existing fantastic life customers because we want to keep our very strong position in industrial EMS.

But we also want to give additional focus to segments where there's high growth potential. And it is, in particular, CleanTech, Data Centers, Semiconductor and Defense, as I mentioned also earlier. We are operating in these areas already, but let me give a couple of examples on that. Within Data Centers, we deliver to several of our larger accounts, different products, which is then at the end going into Data Centers. And this year, we have won our biggest order ever in GPV, in Data Centers, and it has the potential of more than DKK 500 million. The actual ramp-up in mass production is time-wise, not fully clear.

In Semicon, we have 5 long-standing customers, and we have seen bookings for '27 being double the level as what we average has seen in the last 3 to 4 years. So there's also a lot of things happening there. When it comes to the geography, we will follow our customers where they grow, whether it is in the main markets or in regions. We will expand when our customer pipeline and the business opportunities deem it necessary.

We have a well-balanced and very diversified customer group, and we are serving around 350 customers. No customer is above 7% of our annual revenue and top 10 is right now around 40% of our annual revenue. If I look a little bit back to this with the top 10 customers, then we have reduced that from more than 44% down to this 40% level. And that is also fully in line with what we communicated in the Enics merger plan. So this customer mix reduced the dependency and gives us a healthy mix of customers across different customers and different segments.

In addition to the existing portfolio, we also have a strong pipeline. Right now, the pipeline is at a target of -- is at 107% compared to our target. And we have 1,500 active cases, nearly always around that level, and we have around 100 must-win cases. And we are driving that very structured. It's run by one of our Swiss guys. So maybe you've heard about Swiss watches and being on time. That is what he's like to be. I would also like to say when -- in our industry, when you have a win, it takes some time for ramp-up and for mass production. Typically, it takes somewhere between 18 to 24 months before we are really in mass production. And with the current supply chain challenges, this time might even be a little bit longer. So it means that when we have a win, it does not turn into revenue the day after.

Our revenue has been flat in the recent years despite that we have been winning new business across our customer portfolio and have a sound underlying growth actually above market rate. I mentioned earlier that due to the Enics performance before the merger, 4 global accounts had actually announced stop for new business. We have been able to lift this. And of course, we are happy about that, and we can restart growth to these customers. A few large accounts has also reduced significantly. Two had decided to reduce demand before the Enics merger. We have then had to live with it. And one has decided to outsource due to internal free capacity and one has substituted our China sites with a local Chinese EMS player. It's not so that we have lost any of these customers, but they have just reduced the business, which has been hard enough.

Looking ahead of towards 2030, we expect to continue to grow above market rate as we've been underlying during the last years. And this ambition is supported by the recent wins that we have had, the potential that we have with our existing customers, the fact that these global accounts are now back on stream and we can start to work with them and the opportunities that we have in our pipeline.

During '26, we have also communicated about our strong book-to-bill. And today, we have a total backlog of DKK 14.1 billion. So if we successfully also execute on our M&A strategy on top on the organic growth, we have a potential to reach DKK 15 billion in 2030.

If we now go to the right-hand side to EBITDA. EBITDA margin was in '24 at 7%, and we are expecting in '26, the 8.3% level that I mentioned, an uplift of 17%, which I'm actually happy to see. But I'm more happy -- even more happy to see that our EBITDA margin has increased nearly 2 percent points through -- or during the last 5 quarters. That is really encouraging. So this improvement reflects the structural changes that we have been executing. And it also means that the gap or the distance to our ultimate ambition has been reduced significantly.

As revenue growth will materialize, we see a higher capacity utilization, and we see that being reflected in a higher EBITDA level and margin, which will bring us back to the 10% level, which is our ambition. The future growth that we are talking about here will not require that we rebuild our platform. Of course, the M&A is something separate. Our platform, key employees, square meters is already there and the higher capacity utilization will help us to generate a higher profitability.

We are carefully managing our inventories and will work and we do work with the entire supply chain. This discipline remains a core priority. Due to the current challenges in the supply chain, I, however, expect that we will see interim inventories increase to a certain extent. But our longer-term target for 2030, that is an ambition of 25% of annual revenue. CapEx has fluctuated as we have invested in expansion, et cetera. The long-term average CapEx we are seeing at 1.6% of annual sales and should be sufficient to fund both maintaining activities and expansion activities or investments. Return on invested capital is today expected to be at the end of the year around 12%, and we are sticking to the 2030 target to be above the 15%.

So far, I have been focusing on the organic growth case. We know from the CCS and the Enics integration that GPV has the ability to act as an integrator, as I already mentioned. We continue to look for strong cases where we can add on to our organic growth with bolt-on acquisition, selective bolt-on acquisition and also customer site takeovers. Every opportunity we evaluate against a clear value creation requirement. And I can also tell you that in the last 2 years, we have been looking at several cases within segments like Defense and MedTech, but also cases where we have seen potential to strengthen our core further.

We have remained focused on our long-term requirements, but the cases have at the end, not lived up to our expectations for value creation. That does not mean that we are not continuing to be looking around for good cases. And if the right opportunities remain, we are also ready to go for it. But we will remain selective and also disciplined.

Let me conclude and come back to the 3 messages I gave at the beginning. First, we have a strong foundation in place. We have an optimized footprint, and we have one operating model across all of GPV. Second, we are well positioned for growth. We have a balanced customer portfolio. We have a good position to increase share of wallet with our customers, and we have good traction on winning new business. And third, GPV is future-ready to take part in the consolidation of the EMS market. Thank you very much.

Strong message, Bo, and we will now open up for questions, if any. Claus is always faster than everybody else.

First question regarding you taking market share. You're also not that well positioned in the Defense and the Data Center area. So taking market share growing faster than the overall market. Is that because you're going for the white spots? Or are you going to really dig into these higher growth segments? That will be the first one.

Thank you for the questions. I think I'll start a slightly different say, our market share is very low. So -- but of course, if you win something, then you win market share. But it's actually the actual wins, which are super important for us. And we have decided to put more focus on these 4 sectors that I mentioned and also the 2 that you're mentioning, Data Centers and Defense. I do not agree with you that we do not have a position in Data Centers because we are actually delivering to many of our big customers, different products going into Data Centers.

Defense, you know GPV's legacy. When I entered into GPV, we had a lot more Defense than we have today. So we are building back. So actually, in Finland and in Denmark, we are doing quite well. In the rest of Europe because Defense for us is a European game. The rest of Europe there, we are still searching for our way in.

So you growing faster than market is because you are tapping into the faster-growing segments? Or is it all of the above?

It's everything together. It's also the traditional core focus on our business, where we have been growing above market rate.

And then just a final one on the 2030 target, DKK 15 billion, including M&A. Is that important for your margin target? Or why is it so important to have it in your target?

I'm not sure I understand your question.

So the question is no, you put in DKK 15 billion, which is quite specific number on revenue. Yes. And then you have this bucket M&A. When will M&A happen? What are you going to buy? I'm just curious why you put that into your target.

Yes. And DKK 15 billion is, of course, a figure. So you could say if we reach the DKK 14 billion, DKK 990 million something, then we are not achieving the target. So it's maybe not so important that it's exactly DKK 15 billion, but it's super important that we get back on a growth track and M&A will come when it come.

Other questions? All right.

Ulrik Bak, Danske Bank. Also to the revenue growth. So if you exclude the M&A part, what is the organic growth that you're looking at?

That is an organic growth above the market rate.

So 6% or 7%?

Above the 5% that I have shown.

All right. But also in terms of this M&A that you put into your target, I guess it will -- your ROIC will be affected what you pay for a potential acquisition. So how many thoughts have you put into the case, what kind of target you will be looking at in what segments? Because I know in Defense, they are probably high multiples and so on. So just some thoughts around that.

Yes. First of all, when we talk an M&A, it will be bolt-ons and not transformative M&A as we have been doing now 2 times. So that makes it a little bit easier for the return on invested capital. But we are also looking at cases where we see a good fit with us so that we are not starting with a restructuring, if I should go to that wording. So we have tried to take into our calculations when we have been doing this, that there is a certain decline in the return on invested capital due to an M&A. But I guess you can also see that the wording I used around the 15% mark is maybe slightly conservative.

Then final question. You mentioned the site underperformance during the last strategy period. So could you just provide an update on that site underperformance? Is it over? And do you have anything else built in?

We have still some challenges. We made a 3-year plan, and we are -- and some of it we have also communicated about in Sweden, for instance, probably you have seen that. So we are executing on that, and we are executing according to plan.

Wei from SEB. Just one question. How do you view the Chinese competition on your business or maybe on your customers? I know you are probably more resilient in the -- in confronting the Chinese competitors.

Yes. In China, we have actually -- I think we're using the term refined our Chinese setup because China today is for us very much about China for China. It has moved dramatically in the last 4, 5 years. A lot of things have sort of moved out of China. I think we all know that. So I think it's encouraging that we have a little bit of luck. We have added business development in China for our Chinese operations. And this year, we have -- I think I just looked it up the other day, we have won 3 significant cases with Chinese companies.

So we are also able to win business. But the main -- and that's also fair to say the main business that -- absolutely the main business we have in China is for Western, the European or American companies for their products that they are selling in China.

Okay. Are you seeing any Chinese competitors moving out to other markets?

Yes. We are following it, but we do not have a lot of direct competition yet on that account. But of course, we see some are moving outside of China because they have to for other tariff reasons, et cetera. But we do not see a lot yet.

Emil from DNB Carnegie. So just following up on the previous question on the site underperformance and then looking at your 10% EBITDA margin target. Can you speak to the potential earnings uplift once these sites operate on a, say, more normal profitability or back to normal?

Yes. I think, first of all, if I should go back, then we have kind of closed half of the gap to the 10% with the uplift that we have done, and that is based on the structural changes that we have done. And it's clear that the better we execute on the underperforming sites, the better that will contribute to our EBITDA. But the main effect that is actually high capacity utilization. In our business, there is a certain economy of scale. So if we have a good capacity load, then we also do have an uplift, a significant uplift in profitability.

So you can read out of what I'm saying that we have right now spare capacity, maybe not in the exact SMT line or if I go down to details, but in the overall setup on square meters, we have capacity available.

And following up, the company or the segments you mentioned as potential bolt-on targets, are these segments operating with margins above the 10% target, so value accretive on margins? Or where do you see these companies currently operating?

Some are, some aren't. So I think it is a mixed picture. But there are a few above the 10% mark, and there are mostly a little bit under, but not as low. And I also can say we are not looking at bolt-ons with such a low margin as what Enics had when they were entering into our portfolio.

Any more questions to Bo or is the EMS industry fully clear?

Just one here. Can you confirm that the headwind from the lost business from the business that was reduced from large customers? Is that completely behind you and visible on a 12-month basis in the figures. So there is not kind of a new negative impact to come from there?

What I can say is that the business that they have decided to do something else, that is done. And what I can also say is that the restriction to give us new business has been lifted by all of this. So we are fully back on stream. But of course, we have to start winning new business before we see that growing again. That's clear.

Sure. But on a year-over-year basis...

Say again?

On a year-over-year basis, it will not be a negative impact going forward.

That is not my expectation.

Okay. Thank you, Bo. We will take a short break again. I can see a lot of people here who probably need a technical bio break. So we'll take 15 minutes. Then we'll come back, then Morten will tell about HydraSpecma. Jens will finish off and then there will be lunch. So 10 past 12, we will see -- be here again.

[Break]

Morten is the CEO of HydraSpecma, the first company that came into the Schouw & Company portfolio or part of the first company that came into the Schouw & Company portfolio in 1988. So a very long legacy and a very big responsibility. Morten, please go ahead.

Thank you for the introduction, Kasper. And thank you very much for inviting me here. I can understand that I'm between Jens' wrapping off and your lunch. So I'll try to -- on the back of Lars and Bo's strong presentation, I'll try to give you an insight of the HydraSpecma Group.

As Kasper said, we are -- the legacy in the Schouw portfolio company since 1988, so 38 years out of the gates, I think historically, I spoke to 2 representatives of SEB Bank, 2 Swedish people have been living in Gothenburg. So we did a bit of Scandinavian chat and that said I was, so to say, the [ cousin from land ]. And I'm actually quite okay with that. I think what I'm also showing you that we have been quite stable in the ownership of Schouw delivering stable growth, good profitability. Now we are entering more industries where there's a bit more opportunities of upscaling growth. I'm going to touch a bit on defense, data center and also the next generation of electrical vehicles, hydrogen trucks, et cetera, where we see that we can maybe have some above-market growth rates.

Just shortly about myself. I've been with the company for 14 years now, started within M&A strategy and business development, moved to divisional leadership, have been heading our global OEM division from Gothenburg 3 years and back end of 2019, I took over the responsibility after my colleague having served for 47 years in the company. So a big obligation to fill in.

Looking at our platform, we are known to be quite embedded with our customers. And I think that's one of our strengths that we do co-development. We are quite flexible. And one of our value add is to be fast time to market to develop new systems or maybe more optimize and change systems so they adapt to the reality of living. We see a lot of the machines has to be cost out or changed. And there, we have a strong interaction with our customers.

Also that -- I'm going to mention a couple of growth areas. We have seen over the last years significant growth within marine. That's not a new market for us, but we see the green transition in the global marine market. We also see that the PCTC ships called that ships that are transporting electrical vehicles from China to Europe and from China to U.S. That's a big market for us. And of course, also the defense market, we have been supplying to Nordic primes for more than 100 years now. So defense is not new to us. It's a significant part of our business, mainly in Sweden, Norway and Finland.

And then we are seeing good growth opportunities within our mobile segment, that is commercial vehicles, it is construction equipment, it is material handling and it is agriculture. And then the largest -- historical largest of our 3 divisions, Renewable division, which is mainly driven by supply of systems into the global wind power business. Now we're also adding on data centers in that division. We also see some good opportunities even that it's a challenged business, we see some good growth opportunities.

We have good platform for scalability we -- through our strong ownership with Schouw, we have had the opportunity to renew and expand our global factory footprint. So we have -- the last 7 years, we have built 6 new factories, but we have built in India in '24, in Poland in '25 and recently earlier this year in China. And these 3 new factories in best cost countries all have solar cells on the roof. They have heating pumps in the basement. So they are internally CO2 neutral. And we are one of the only players in our field that can offer that to our customers. We can also help our customers in engaging on their science-based targets goals, et cetera, transferring towards a fossil-free environment.

Just a bit about -- we have -- I have 1,700 skilled colleagues across 11 countries where we have our own manufacturing. Last year, we hit a turnover of DKK 3.2 billion. We have 100 years' experience. Our Swedish company was founded in 1918. And we operate our company, as we say, we have 4 home markets. That's the 4 Scandinavian countries, Denmark, Finland and Sweden and Norway. However, we serve the global market, but we serve Western European and U.S. OEMs and go with them in the market. That's also the reason why we are in Brazil, why we are in India, why we are in China, that is to follow the Western OEMs to be together with them to deliver one product, one quality globally.

A bit about our growth history. I'm quite proud to show that these numbers has been quite stable. There has been -- you see the small note we did in -- back in 2016, we did an acquisition of Swedish Specma Group. And in 2023, beginning of '23, we acquired Danish-Swedish Ymer Technology cooling for wind turbines. And these 2 have, of course, been a major transformative acquisition. Otherwise, we have had a stable and steady organic growth. We can also see that around '23, we saw a dip '23 and '24 in our earnings, and that is mainly related to that the company onboarding had legacy a lower profitability, and we also had some one-off integration costs to integrate Ymer into our infrastructure.

Looking forward, we can see the last -- especially the last 2 years, we have had a quite good development both on top line and on EBITDA. Actually, if we go further to EBIT and EBITDA, we see even a better development. So I think quite strong trajectory and 5 doubling the turnover since we took over Specma back in 2016, where we went from a Danish company to being a true international global player within Hydraulic Solutions and Power & Motion.

A bit about -- and this is maybe a bit bold to state that we are difficult to replace. Maybe I should knock on wood here, but I actually stand with that word. We have -- the last 15 years, we have not lost a top 50 customer. And we have not lost a significant share with a top 50 customer. And I think that's a quite strong statement. And I think it comes from our DNA and maybe this [ cousin from land ] because we are -- maybe you can joke a bit, but historically, we are maybe a bit a bit under educated. And I think you need to work a bit harder. We have been the smaller player, and we have always been raised and we need to be a bit hungry.

A lot of our competitors are EUR 10 billion. So it could be the actual ballpark, the real big ones. So we have to be more hungry. We have to be more focused. So even smaller customers, we know they can be bigger in the longer run. So I think we have a culture where we really focus on our customers. If we make a mistake, we really do our efforts to get back on the cycle again. And I think that can -- this culture, we can see that that's a huge benefit for us when we're engaging with our customers. We also are very much focused in doing front-end engineering and get our products or our processes specified early in the design stage with the customer.

That is much better and much easier for us when we need to ramp up the production and also strengthen our competitiveness. Then we have sourcing in the region. So we have something called in the region for the region. So we have sourcing in China for our Chinese factories, sourcing in India. We have sourcing in Europe, and we have sourcing in Americas for our factory in the U.S. and in Brazil. And then we are known as being brand independent. And as a lot of our competitors are the real big players, they go with our own brand. We can combine. We have some own production, and then we have components that we buy from other -- we have our own private labeling or we buy from some of the real big ones, it could be Danfoss or Grundfos, et cetera, or the American ones, and we combine that to system solutions where you can get a unique solution through HydraSpecma. -- than you can not get from one of the big ones. And that is a real big advantage. Then we put a lot of pride into validate and test our products. We have -- if you look at our financial numbers we have benchmark on quality claims and what cost we put into poor quality. We have a lot of respect for cost of poor quality and make sure that we get that stopped or validated as early in the process as possible.

That's always been a part of our, so to say, legacy and DNA, and that has carried us forward. And then the last to be sure that we can deliver within the region and be very flexible. And we have a workforce that is raised to being that when the customer needs us, we will be there. So even that it is the union and frameworks, then I think we have above market flexibility and agility in our production. We are always combining with the strong ownership of Schouw to have a quite high level of automation, but we also still want to make sure that we have some manual lines for rapid prototyping or for fast track orders. So we can combine efficiencies through automation and agility and flexibility to help our customers if one of our competitors makes a mistake or if our customer forgets to order the right products. On the quality and also latest social responsibility, that has also been quite strong. As I mentioned, we have some green factories around the world. We also have a quite nice rating in EcoVadis, and we have now committed to science-based targets.

So I think this is also -- we are trying to go from compliance to competitiveness and create value through the ESG. So it is not only administration and managing of data, it's also creating value for our customers. And then as I mentioned, we have these 3 new large factories in best cost countries, India, China and Poland. And then we have a highly automated footprint in Scandinavia to serve proximity mainly to our big Swedish and Finnish OEMs. Here, a bit of our execution focus. We are standing on the highest order backlog ever. We don't measure orders so far out in the horizon as some of our peers does -- but we measure it the same way year-by-year.

So this is 19% up compared to last year. We are coming out of the first half with the strongest order intake ever. We are now converting and trying to convert the opportunities we say within liquid cooling to data centers. Some of you have maybe read that 4 weeks ago, we announced a big partnership with Danfoss. We have been selected as Danfoss' partner for data center cooling in all 4 Scandinavian companies. Countries as the only exclusive partner worldwide for Danfoss. -- we expect quite a lot for that. And the reason why they've chosen us is that we have a lot of experience in cooling power electronics in wind turbines, and we also have a lot of experience in fluid conveyance , so the connections of the liquid cooling. And we're always seeing the first projects rolling in even that the agreements is only ink is nearly not dry.

And then we also have opportunities to build complete cooling systems similarity to the ones we do in wind power. I put a headline here, drive digital transformation. We are putting quite a lot of efforts into setting the digital agenda, both internally to get efficiency. It could be genetic AI, robots, et cetera, internally, but it's also to do more efficient interaction with our customers and use together with our customers, use the common data to enhance our competitiveness and more important, maybe enhance our customers' competitiveness and make sure that our customers' time to market can be reduced. We see in a global scale where there's a lot of competition, mainly from India and China, time to market is paramount for our Western OEMs and working on data, we say that data is the new currency. So working a lot on data close with development teams, we can position our customers to win market share. And when our customers win market share, I said we have not lost any top 50 customers in the last 15 years, it goes without saying that we are winning market share.

So that's very important for us. And we really -- we're doing a lot. I don't think we do enough even that we are doing a lot. We're trying to employ young people out of university to play with these agents and robots, try to find out what is the right way to navigate in and trying to be AI first, if possible at all. And the last thing I want to highlight here on this slide is our Nordic footprint. That is our legacy. That is where we serve the medium-sized customers that also where we have distribution, e-commerce and aftermarket service, and it is also the highest margin part of our business.

And here, we want to push hard and simplify, make it simpler for our customers to do business, but also simplify our internal processes. We want to scale that business, and we want to accelerate both organically and via acquisitions. One of the -- I'm sometimes getting asked Morten, what is the secret recipe that HydraSpecma is one of the only Northern sub-suppliers to the wind turbine business that year after year deliver reasonable profitability in that business because there's a lot of pressure. And this is maybe a difficult question to answer. I'm taking it before. There may be questions out here. I'll try to solve it. And the quick answer to that question is diversification.

We have 3 divisions, and they are built up from customer and inwards. That means our customer care, our engineering and our sales force is individual, but the backbone goes across the line. That means IT, security, people and culture, finance, procurement, operations, sourcing, et cetera. So we get benefits and scale and some of these wind power and for example, commercial vehicles, construction equipment, marine and defense, they are off cyclic. That means that we can divide the investment cost, we can divide some of the CapEx and also some of the SG&As in the across of the 3 divisions.

So that's a huge benefit. And I think we are one of the only Scandinavian companies that is a big player in wind. They also have a really strong position in defense, data center and global OEM. That's a big strength for us. I'm just going to highlight quickly that when we talk about renewables, there we also have data center. And data center has nothing to do just with power-to-X wind power and solar in principle, but it is the same products we are supplying. That's the reason why our Renewables division handled that segment. And there, we see a quite big growth opportunities. We also see some opportunities to be on the right platforms, both onshore and offshore going forward on the wind turbine to drive growth.

If we look at global OEM, we have touched defense is a focus area for us. Marine, where we still see a lot coming on the green transition. We've also been one of the frontrunners in some of you have read the wind-assisted propulsion where you use sales to reduce the fuel consumption. There, we have also been one of the development partner in that area. And then commercial vehicles and construction equipment is 2 areas where it's maybe 3% to 4% CAGR, but we are winning market share. So we actually believe that we have double CAGR in both commercial vehicles and construction equipment going towards 2030.

So there, we are planning between 8% to 12% annual growth in these 2 segments because we are winning market share.

The last thing is our IAM and OEM, that's maybe a bit difficult, but stands for industry and aftermarket and the OEM part is local or domestic OEMs we are serving compared to global OEMs. And here, we see that electrification and software and service and e-commerce to make it easy to get the spare parts is a real strong engine. We launched our first e-commerce in 2009. That was quite early days for technical e-commerce. We have rolled it out in all 4 Northern countries latest earlier this year in Norway. And we see a lot of combination with having physical stores, being able to have good tech centers to serve the customer and easy to access 24/7 through our e-commerce.

Then I'm just going to let this picture stand for a couple of minutes. I'm quite proud. We have a lot of blue-chip customers. And I think the strong position that our order intake is showing and also our traction for the first 2 quarters, which we have disclosed. We have not disclosed yet Q3, but I'm quite satisfied what we have seen. So when you see that figures, you probably agree with me. We have signed NDAs, so I cannot mention the new customers we have onboarded, but we have onboarded significant of the real big players in the last 1 to 2 years, and that's coming on the back of corona. -- where the real big competitors of ours has been quite rigid. They have maybe been very tough on the pricing and they have not been able to serve the OEMs the right way. But the OEMs had no chance to change because there was a lack of capacity. Then they have spent 2 years in engaging with players as us. And now these new contracts are falling into order from -- actually from last quarter and all the way up to '28. And that's the reason why I'm quite comfortable can say that we really believe that we have double CAGR on commercial vehicle and construction equipment for now on to 2030.

2030 plan ambition, this is quite ambitious for the crossing from London. And we are saying HydraSpecma 5.0. This is an organic growth plan. We have together with our owners dry powder. So if the right opportunity comes, I'll touch that, then there will be M&As, but this is seen as organic growth plan. And I'll try to highlight what has to drive this growth. One thing is, as I mentioned, share of wallet, so we gain more value per machine. We see areas as construction equipment and material handling has a lot of fierce competition from China.

But what we see is it is typically what we call compact machines. So the smaller machines that will be affected first. Our legacy have been -- we have always focused on heavy equipment. So we have focused on the more advanced machines where we can combine software and it's more -- it's bigger forces, so it's more advanced hydraulics -- and we are in that fortunate situation that these machines are not under the same pressure yet in China -- in Europe from China competition that the compact machines. We've also seen that some of our big customers like Volvo Trucks Equipment, they are moving 3,000 excavators plus 30 tonnes from Busan in Korea to Eskilstuna in Sweden.

And they, of course, need to have a European supply chain. We have been serving them since 1961. So there are some good opportunities there too. So really momentum in winning market shares. And then we are looking -- we're putting quite a lot of effort into having dialogue with the customers on what is the machine of tomorrow. And our history shows that we have been -- you can call it lucky, but we have been quite fortunate that we go for the machines that are high volume. So if sometimes we can have customers, sales drop. So if we look at the book-to-bill, but we still grow because we have a larger share on the machines that they expect to build more of and less share on the machines that's out phased.

So -- and that data exchange with the customers is very important going forward. And we spend a lot of time being close to our customers to get this data from the technical people, from the purchasing, from the factory, from the testing of center, what is the new products going forward? When are you introducing battery electrical vehicles, when are you introducing hydrogen engines, so we can phase out and use our limited R&D resources correctly. This is an important thing. Emerging segments, data center, I have to be. The agreement is 4 weeks old. We don't know how big it's going to be.

We can see that every time we open some newspapers that say the data center market has exploded in U.S. and in China, it maybe will start in India, and it will definitely come to Europe, especially Norway and Sweden, where you have green, cheap electricity, maybe also Denmark, if we can get enough wind power, and that's -- we like that because then we get a bit in both pockets. So let's see how this data center more. We can see that defense is really booming. We are going from 2% to 4% of our turnover.

We expect it to be plus 10% of our turnover in 2030. Our profitability in defense is also higher than average because we have no competition for -- from China and India, and it is more complex system. It's difficult to replace.

And we are fortunate we have been with these customers for a long time. And then I think we have invested together with our owners heavily in a footprint. We have the right -- we are located in the right areas. We have modern factories, both out of working environment footprint and automization, but also from an ESG point of view and our customers is adapting into that. So all in all, I think we have a strong platform. We have good people behind. We're saying results are created by people. We have the best people in the industry.

We have strong owners that believe in us. And I also think we have a track record shown before that we have opportunity to put these words into action. So I'm quite comfortable looking forward. Then there's always risk, because there's risk when you run business. This is not purpose made. This is directly out of our risk cockpit. So this is not made for this presentation. And there's just a couple of risks that I want to highlight. And number two, liability and warranty claims arrow up, what does that mean?

It is mainly because we are taking a larger share of the machine. So for the truck, for the construction equipment, for the wind turbine, we are taking a larger responsibility. We're also doing software. And when you take a larger responsibility and combine it maybe with the windmill is standing on the wind turbine standing on the offshore or on the neck of a mountain, then you get higher liability. But what is the medicine, then we have recently announced that we are investing 2-digit million Danish kroner in a validation and test center in Denmark. So we will be putting even more effort into validating and testing the products, both to reduce time to market for our customers, but also definitely to make sure that we can offset the risk in the contracts going forward.

Then I want to build geopolitical turmoil. That's definitely something that we cannot control, but our strategy in the region for the region really benefits this position. So I think that helps us. And then the last thing, technology shift. We have been a bit afraid that the wind turbine manufacturer will go from geared solution to direct drive and from electrical pitch to -- from hydraulic pitch to electrical pitch, but we have not seen that development. Actually on opposite, we are seeing that more are installing geared turbines and also some of the Chinese are going back to hydraulic pitch.

M&A, we believe that M&A will be -- M&A has put us in this position going from a small local Danish company to international player, and we also believe that's going to be important going forward. But we now have infrastructure and engagement with these big customers. So we don't want to do M&A for every price. So it needs to be a healthy business. And that's the reason why that is up first. We don't want to do margin dilution. Maybe we will have a small dip because we are in the higher level of the margin, but we need to be sustainable business going forward. We want to have a strategic fit.

We want to make sure that we can gain on the synergies and the growth. We are very careful on culture. We have really a strong culture. We have 1,700 people. We are doing engagement twice a year, and we get good feedback from our people. So we want to protect that culture. And then we want to drive active ownership and fast integration. So we get synergies into our platform, into our IT infrastructure to sustain profitable growth going forward. Disciplined growth, I put in a couple of words here, a strong platform. As I said, I really truly believe we have a strong platform.

We have the global OM, we have the data center. We have the Marine business and the defense. We believe that, that organic growth can drive EUR 200 million or DKK 1.5 billion. And then we want to continue to run a healthy cash discipline to make sure that we are attractive member of the Schouw & Company family. I think that look at Kasper, he wants me to...

No, no, no

I think...

Also right on time. So I think this is perfect. Any questions for Morten? Let's start without Claus Nielsen.

I'll start with one question. So Emil from DNB Carnegie. As you mentioned on the previous slide, so as of Q2, you delivered a return on invested capital of 19%, excluding goodwill, 16%, including goodwill, which is, as far as I can see, the highest level over the past 10 years. So first, if you can speak to the sustainability of that level? And secondly, also related to that question, -- so as you pursue the at least DKK 1.5 billion in incremental revenue by 2030, should we expect the incremental returns from that growth to be above in line or below current levels?

So ultimately, what I'm trying to get a feeling of is whether HydraSpecma is expected to remain ROIC accretive to Schouw Group levels?

I can, of course, not comment on what the rest of the companies will do in Schouw. But to your question, the business that will drive the majority of the growth will be data center defense. It will be system sales into commercial vehicles and construction equipment. And that has above our current average profitability. And if this is organic growth, and we have done the investments, then I also foresee that we will have an improvement in our ROIC. Of course, if we do a large acquisition, this is organic.

If we do a large acquisition, then you can do the maths. But yes, we believe that we will have an improvement in profitability and improvement in ROIC going forward towards 2030.

Okay. That's very clear. And you guide for '26 EBITDA margin of midpoint 12.7% for this year. The margin targets highlighted earlier in the presentation today stated that you have a target of 12% to 14% EBITDA margin. So given what you just said in terms of the expected growing exposure to these higher return segments, it seems a bit conservative that you shouldn't be able to grow above that level also given your -- it seems like you're becoming more engineering-led, maybe more aftermarket exposure, which I assume is also margin accretive. Maybe you can touch a bit on the margin expectations given the increased exposure to these segments.

The segments I mentioned here, we believe that we will be margin enhancing. We don't know how much data center will play. And if data center will have a significant part of our business, then I think we will be in the upper level or maybe -- and I can promise you we're not going to stop if we hit 14%. But we also have to be fair and say the global wind power is under tremendous pressure. And we have been in the last 10 years, we have through best cost country to cost out with our customers through a high level of automation and a very strict focus on the right quality first time, we have been able to maintain our profitability margins in renewables in offshore wind I think that's going to be under pressure. So I'm quite sure we will not be able to increase the margins. In BESS, we'll be able to keep them. And it could be that we need to lower them a bit to ensure that we'll keep up volume against tremendous pressure from China.

But there could be an upside when we hit 2030.

Okay. Sindre from Arctic here. Could you tell us what your current aftermarket exposure is and your internal target for the share of revenues?

Yes.

When we have aftermarket, we have 2 segments we are looking at aftermarket for now. We have what we call our Nordic division. There, our aftermarket is approximately 30% of our Nordic division, and that is 10% of group. On renewables, aftermarket has been less in wind power because we have not -- until 1 year ago, we have not actively searched for aftermarket. If you look at a lot of our peers, they have a loss on the OEM sales and they gain their profit on aftermarket. We have always been focused most on the OEMs in wind, and then we have actually just, so to say, waited on the aftermarket. We changed that strategy 18 months ago. And now we are pushing quite hard. We have set aftermarket setup in U.S., aftermarket setup in Europe for wind turbine. And we see that market evolving. At the moment, it is around 12% of our renewables business, but we believe it's going to move towards 20% to 25% of our renewables business in 2030, 2032.

So an increasing part of our business will be aftermarket, also in line with the increased installed base of turbines.

You also said that the Nordic was the most profitable business and data centers, you mentioned several times. I guess Finland is kind of being the hottest data center country in Europe as of now. What's your plan for being or, let's say, getting a stronger position in that market?

What we mentioned, we have made an agreement with Danfoss that we are going to be their sole partner for liquid cooling of data centers in the 4 Scandinavian countries. We are in good contact with the contractors in all 4 countries. They have some new projects on the map. I also think when you -- everyone is reading that Google will be investing EUR 13 billion in Finland. We also need to remember that's including a new power plant. So it's not only for HydraSpecma , EUR 13 billion. That's a bit of other stuff. But we have sales organization in place. We have 75 salespeople in the Scandinavian countries. So we are close to the customers. We will be producing for now all data center cooling in Denmark because it requires a high standard for cleanliness and there is -- so idea is production in Denmark and installation in Denmark, Norway, Finland and Sweden for data centers.

But would it help to -- I mean, you mentioned M&A to do, let's say, like you recently did in Norway, just acquire some.

We have been initially looked. But first of all, the market is quite mature. We have the products. And then secondly, I think that's more for our owners to comment the multiples you will see in data center cooling at the moment for M&A is significant. So we need to look at if it's better to do it greenfield.

Any other questions for Morten? Otherwise, I'm really, really happy. We are right on time. So with that, I think we have had 3 highly ambitious CEOs. I will now hand over the words to Jens to do some final remarks, and then we will have a final round of Q&A to Jens and Thomas.

Yes. Thank you very much, Kasper. I will do it very short. In fact, just sitting down behind and listening to our 3 CEOs, I really have to say, quite proud of it. I think we have 3 fantastic companies with a lot of opportunities. I think all of the 3 of them showed solid plans, strong ambitions, not afraid of sticking a little bit out and promising things. So that's super good. I think also you could see and feel in all 3 companies, strong values. We are a value-based company, and I think it really is embedded into all 3 companies. I'm just putting this one out saying that we have -- we are in relevant businesses. I think also we have a very well-proven model. I started the day saying I will not -- we will not bring a big revolution into this room here, but we will build more on the platform we are standing on. It has shown its resilience through very difficult times. But we are still very ambitious. We want to grow and we want to build on our strengths.

I think also without being too optimistic that kind of opportunities knocking at the door, and we are also ready to take these opportunities. We want to be a long-term attractive share. And I think really that the platform we are on now is strong. I think the 3 companies really put some flesh and bone on our Expand 2030. It's easy to just show one slide saying this is at group level, EUR 4.5 billion, et cetera, where should they come from. But here, we highlighted a lot of things that we expect to grow and to be in. So not much more to say today. Just finishing off with our Expand 2030 slide or our strategy canvas or whatever you call it, we have been into all the numbers and all the targets, and we have a very clear ambition to deliver on that.

I also said that this is organic. We are looking into margin accretive or value-accretive acquisitions, not being stupid. And if we -- when we have strong cash flows and so on, we need to invest in a good and strong way. So with that, canvas, just one thing before we opening up for questions. Morten also mentioned our mantra, which has been for Schouw & Company for so many years, results are created by people, and I really and honestly think it's the strongest force we have.

And we build on that, and we can discuss AI, and we can discuss a lot of things, but the people, 20,000 people working dedicated every day, strong management teams, that's what creates results for us, but also results are created by people, meaning also a few people have to thank for today because setting up a capital market as this is not just something you do overnight. So I'd like to thank Diana Grimber, for facilitating and then also Emilia and Julia for doing a lot of stuff from Schouw & Company. This morning is easy for me just on the water plane flying in and then giving the speech. But when I came in here this morning and saw the lineup, I was very happy. So well done, super. And then, of course, the CEOs. And then all of you, thank you for coming and also for the questions and so on. And let's open up for a few more questions before lunch.

So if there are any more questions, then feel free to ask them. Ulrik.

Yes. Thank you, Ulrik. Of course, now we have the revenue growth trajectory for 3 or 4, if you could include BioMar for 2030. Could you perhaps just put a few words on the Fibertex companies, Borg, if they are above, below or in line with the 5% to 7%?

Fibertex non-woven, we expect them to grow below. They are on a very, very good journey now and also utilizing Yes, that's a big difference. They are really doing well and tracking as expected and utilizing that capacity, a lot of new innovation. Fibertex Personal Care, as I mentioned, we are under pressure in Asia. We are not growing. We are fighting to keep our volumes and our base. We have a lot of things in the pipeline. I said also innovation and things like that. But that's the one that is really a little bit under pressure. Borg Automotive, we have a

we have a Refine4Future plan at work. We are tracking a little bit behind last year on top line, but a very solid uplift on profitability. And I don't expect Borg to grow a lot. They -- I think they'll grow along with the market. But it's -- I think the 2 companies challenged on top line, that's BorgWarner and Fibertex Personal Care.

And now that we have you an opportunity to ask a question about the ownership of BioMar. Just your -- what are your thoughts around the future ownership and timing of potential further sell-down, if any?

Yes. I also said that we are long-term owners of BioMar. We've been there for many, many years. We are Still, we want to participate in what we think will be a very strong future value creation and so on. So we are sitting there, and we are not changing that position. We do not have any intentions to change that position. But of course, if something else should come up and we need or should get some cash, of course, that's a place where we could have it from. But we don't have any intentions of selling down as we speak. And we are so far, long-term owner of BioMar. And they can -- and I think also they can count on Schouw & Company as the invisible but demanding hand.

Oi from SEB. Just on the capital allocation, can we rule out another sort of major platform acquisition in the next, let's say, 3 years?

Did you say rule out?

Yes.

No, we cannot as such rule it out. As Jens said, if there's a good opportunity, we do have the powder to do it right now as well, right? So we cannot rule it out, but we just want to send a signal that we don't, just because we have a lot of money, we'll go out and buy something that is not thought through. So we cannot rule it out, but we can't say either that it will happen for sure.

I think also, Thomas, we say we will be very loyal to our capital allocation principles, and there were the matrics there. And at the end of the day, in the bottom, there were also something going, we need to give something back to shareholders. Of course, we want to do that. But I think the best for shareholders is continuously to invest in our model. So at the end of the day, if we can't find a value accretive or margin-enhancing acquisition, we don't do it.

Christopher from SEB Asset Management

Just your strategy on treasury shares because you have significant treasury shares. What's the end game here? Are you going to cancel them? Or are you going to use them as a currency for future acquisitions?

I think it would be -- we have a little more than 11% of the outstanding capital in treasury shares right now. We have a mandate that we can go up to 20%. And we are -- as Thomas said, we are acquiring quite a lot of treasury shares right now, but it's not an intention for us to keep this. So I think it would be fair to assume that there will be some kind of cancellation of these shares.

Yes. Great. And then another tip, instead of calling it conglomerate, call it compounder, -- then you get a different valuation. It both of them...

You're right.

From Nordea. I think you, Jens said you are happy with the shareholder of BioMar, but something happens or something attractive pops up, you might be changing your view. How should we think about the -- what is the first step that you're selling some BioMar shares, then you have the funding to do some attractive M&A or will it be the other way around?

Yes. Honestly, I said we are standing there. We have the position we have now. We have no intentions with underlining no intentions of selling off anything as we speak, and we can still fund a lot of attractive opportunities from Thomas. Thomas, I'm coming with a lot of gracious ideas going after Thomas not going to say, give me some money, and then he will find it not BioMar shares. So for the time being, it's not part of our thinking, Claus. We are there with BioMar as as the biggest shareholder.

But just to be sure, the 1 to 2 platform investment possible, is that including Spectre, right?

That's including Spectre.

One of them.

Yes, it is.

And then maybe a more high-level question. Next 5 years, sitting in the headquarter, CEO, CFO, what will be the 2 most important things you'll be doing?

Last..

Very easy, right.

No, okay, honestly, I would just see that we deliver on the plan we have shown here as to really continue to build on the very, very strong platform and also that we can be resilient whatever happens. I think that's so important for us and then be the supportive invisible hand for our companies. Very important for me.

I would echo that, execute on what you're seeing here and making sure that what we have done so far and the benefits we have seen recently, we continue on that track.

Kasper, you are the Chief Investment Officer, let's do.

And I think we are in a position right now where the balance sheet is extremely strong. The cash flow outlook is extremely strong. So one thing is that there is an ambition and Ulrik may say that we calculate in a different way that we should, but it is an ambition to reach the DKK 4.5 billion in EBITDA organic, but there are a number of opportunities besides of that. So M&A is high on our agenda. And I think going forward, there will be a number of opportunities in the portfolio. And that includes BioMar. Remember, we have not sold BioMar.

We are still the main owner of BioMar and allocating capital in Schouw & Company also means allocating capital to BioMar. So BioMar M&A is also part of the agenda. So we might have shown today that -- Schouw & Company is much more than BioMar, but BioMar is still the biggest assets in our portfolio and don't forget that.

Will you still be around in 2030 as CEO?

I hope I will still be around

As CEO.

And to be honest, I don't comment on that. I really honestly love my everyday life and my business. And so you never know what happens. But if I said something else, we need to go to the stock exchange and send something out. A lot of energy, a lot of things still going on. You go to see we have a great team here, the GET team. So -- and I just also showed when we started this, the ExCo, the GET, the bought company and much more than the NPL Schouw. That's very important to know.

A proposal or suggestion, consider being a dividend growth stock. Dividend growth is a good way of protecting your investment against inflation. It's a relatively important part of many American investors. It's basically overlooked or not appreciated in Europe. But if you really are so strong, if the conglomerate is so strong and such a good idea, that would be a very impressive way of persuading investors that you are able to increase constantly the dividend?

But I think we will take that into consideration, of course, but I think it's fair to say that we are paying out dividends. We have...

You're not paying out growing dividends every year.

We have, over the past 10 years, been paying around 3% of the market cap. So if we were a bond, then you would have a 3% interest rate and then you could have the share price appreciation or decline on top of that. So we are not a dividend stock as such. We are a conglomerate who likes to invest and deploy capital in what we are doing. But we are paying dividends, and we are rewarding our shareholders and have done that for the past many, many years, and we'll continue to do that.

But I think we take note on that, And, of course, I always listen to...

Yes.

Okay.

Lunch is knocking at the door. I just have to say that.

So

Right on time. If there's no more questions, then lunch will be served when you head out of the door just behind you. It's named that we are going to eat in the wine seller. It's on this floor. So I don't know if it's a seller, but at least we will have lunch out there. Thank you so much for participating. Thank you for all the great questions, and we'll be happy to be in touch over the next many years. Thank you.

Thank you very much.

[Audio Gap]

Positive outlook in all our companies. Revenue is now expected to be DKK 34.8 billion to DKK 37.1 billion. EBITDA raised in a spread of DKK 3.15 billion to DKK 3.35 billion.

Looking into each of our portfolio companies, we -- I'll start with BioMar. BioMar came out, as I said, with the Q2 report 2 days ago. So of course, a lot of information has been given there. But let me just elaborate a little bit on BioMar anyhow.

They had a record high Q2 feed volumes. Total volumes increased 3% to 395,000 tonnes mainly growing in Ecuador and Australia. The revenue increased 5% to DKK 4.2 billion in the quarter based on higher volumes and also effect from raw material prices, seeing a very solid development in the feed for shrimps, as I alluded to earlier on, also in Ecuador. EBITDA increased 2% to DKK 357 million. The Feed segment delivered, however, 9% EBITDA growth. Profitability was hampered by IPO costs and also a transition of our tech solutions into a new business model in the market.

We still see a strong -- very strong underlying momentum. We have secured new contracts in Norway. There's a strong and continued focus on formulation optimization and use of alternative raw materials to offset effects from El Nino. There's also positive expectations for volumes in second half. And that means also that BioMar already 2 days ago raised their guidance, now expecting revenue between DKK 17 billion to DKK 18 billion and then EBITDA in the spread of DKK 1.62 billion to DKK 1.72 billion, also an increase by DKK 100 million.

From that on -- moving on to GPV, our second largest company in our portfolio. They have seen increased demand and also profitability. Revenue stable at DKK 2.2 billion. However, activity level developed an uplift, 5%, compared to Q1 '26. EBITDA increased 20% to DKK 187 million. Here, we also experienced continued productivity improvements. We see really positive impact now from all the footprint optimizations that GPV has been doing over the years. EBITDA margin increased to 8.3%, trailing towards our 10% target. So a good momentum.

There's also a very strong visibility on future activities. We have a very high order intake and a strong book-to-bill. In fact, got very big orders from new customers coming in. Our commercial pipeline is really supported by these new customers, but also by higher activities from existing customers in the GPV portfolio.

There's still a concern on the supply chain, especially on selected components as memory chips and semiconductors, difficult supply situation on that. GPV has many years' experience in handling such a situation, but we could expect that our inventory may increase to secure customer deliveries. Also, GPV made a small uplift on their guidance. Revenue narrowed, DKK 8.6 billion to DKK 9 billion expected now, and the EBITDA span also narrowed. We are lifting the bottom of the previous guidance. So expecting now EBITDA of DKK 710 million to DKK 750 million.

From GPV, moving on to HydraSpecma, where we really see a strong growth across all key divisions. HydraSpecma really continues the very solid development they have been delivering over the last years. Revenue increased 12% to DKK 925 million. And especially this increase is coming from the Renewables and Global OEM segments. EBITDA, however, increased 30% to DKK 125 million, really reflecting strong operational leverage from higher activity, but also effect from ongoing supply chain optimizations and automation throughout the company.

We see also continued production footprint improvements here. We have moved products around the different factories within the group. HydraSpecma continues to invest for further growth. They just opened a new facility in China in Tianjin, a 20,000 square meter new factory we really expect to benefit a lot from in the future. Also made a small acquisition in Norway to strengthen the position, a company called Hyco, small company, but still just also underlining that we are looking a lot to expand our Nordic base.

There's a very strong commercial momentum in Hydra, and we see a very solid order intake in Renewables and Global OEM also here. We experienced growth opportunities within new segments. We are in marine, but defense and construction of data centers really knocking on the door and trying -- and want to do business together with HydraSpecma.

Guidance also here, raised revenue now expected to be between DKK 3.4 billion to DKK 3.6 billion and EBITDA in the span or the level of DKK 430 million to DKK 460 million.

Then moving on to Borg Automotive. Borg has, over the last year, had a difficult period, but now we see profitability improvement even in a soft market. However, revenue decreased as expected, 5%, to DKK 461 million, and it was mainly within the Reman segment that demand remained soft and competition continued to be both intense and fierce. However, EBITDA increased to DKK 38 million for the quarter.

And here, we really now see strong benefits from the, what we call, Refine 4 Future program. And it's a strong action plan or game plan that Borg initiated a year ago. We have seen very solid execution on very difficult projects. Productivity improvements and cost optimizations throughout Borg is really materializing now.

What we -- the other segment we named Newman segment, that's new products imported into Europe now coming out with a positive EBITDA, very positive. We have done a lot on pricing and cost initiatives that supports that turnaround.

The transformation within Borg is progressing. And as I mentioned earlier, we are really seeing very solid execution throughout the company and the organization. Production has been relocated. It's completed. We closed down the entire U.K. facility. We have implemented a new commercial organization and a new go-to-market strategy. Working capital reduced by 26%, which is very positive.

Guidance also here upgraded. However, revenue maintained in the spread of DKK 1.6 billion to DKK 1.9 billion, but EBITDA now raised to be between DKK 90 million and DKK 110 million.

So moving on to Fibertex Personal Care. We really see a company with resilient performance in very volatile markets. Fibertex Personal Care really depend on one raw material, polypropylene, oil-based, a lot of that supplied out of the Middle East. So that has been a tough period, but they have been able to pass on raw material prices through the sales price.

EBITDA in this difficult period increased 23% to DKK 59 million. Here, we saw strong performance in our Malaysian setup and also continued positive momentum in our Print division. I think it's also positive that Fibertex Personal improved their ability to manage volatility. They have implemented a faster and more frequent customer price adjustment model. They have a very strong focus on PP, or polypropylene, sourcing and availability, looking into new alternatives. And as usual, always has a focus on margin protection.

The commercial development continues, trying to offset challenging overcapacity and market conditions in Asia by being innovative, now introduced a new elasticated product line, which shows good interest in the market. Guidance also raised here. Revenue now DKK 1.7 billion to DKK 1.9 billion and EBITDA expected to be DKK 160 million to DKK 180 million.

Then moving on to the last company -- not the least, but the last company in our portfolio, Fibertex Nonwovens. Here, we saw a very positive solid momentum with growth and profitability uplift. Finally, we are really harvesting on all the investments we have made over the years. Revenue here increased 20% to DKK 700 million. Sales volume increased 12% in difficult market conditions. EBITDA increased 47% to DKK 84 million.

And here, we really saw continued improvement in the U.S. business, which had been struggling over some years, but now really starts to deliver as expected. We saw positive contribution across all major sites and segments.

There's also a very broad-based commercial momentum within Fibertex Nonwovens. We see good growth in the U.S. wipes and hygiene segment. We are recovering in Europe on the automotive and construction segments, and we experienced strong demand for our lightweight and specialized products. And here, we really see that FN has a benefit in the market because we are solid and strong in producing these specialized products.

We're also looking into capacity supporting future growth. We have had a new line in the Czech Republic underway for quite a long time, and it's now finalizing the installation start-up expected in Ultimo this year. Guidance also with the Fibertex Nonwovens raised, revenue in the spread of DKK 2.5 billion to DKK 2.7 billion for the year and EBITDA now expected to be between DKK 230 million and DKK 260 million.

So just concluding on Schouw & Co.'s outlook for 2026. As mentioned, overall guidance for the group, revenue raised to DKK 34.8 billion to DKK 37.1 billion. EBITDA now expected to be DKK 3.15 billion to DKK 3.35 billion. It's a development and expectations that we are very positive on. Guidance uplift supported by very strong market positions, also a solid order book in nearly all companies and continued operational efficiency across our portfolio companies expected.

We will also -- as I mentioned, we have acquired a new company, Spectre. It's expected to be closed in Ultimo Q3, start Q4. Spectre is expected to add DKK 300 million to DKK 400 million of revenue in 2026, but no material EBITDA contribution after acquisition-related effects.

So with that uplift in mind, then I will open up for questions.

Wei from SEB. A couple of questions from my side, and I'll do one at a time. Firstly, on the GPV, can you break down the strong momentum here? And how much of it driven by volume and how much is driven by the pricing?

Thank you very much. Not so much is driven by volume, we were 5% up compared to Q1. But in general, a little bit flat, but -- and pricing, of course, a little bit, but mainly, and I would say, 80% driven by efficiency, by our footprint decisions made. So it is really an uplift on operational efficiency and better utilization of capacity and factories and so on as you know also, Wei, we have been investing over the years, and we really see strong benefit from that now.

Okay. And then the large order you mentioned from a customer, which sector it is, if you can indicate?

Yes, I can indicate. It's for the data center segment, and we have really been working hard on getting our feed into that segment and something we really have focused -- strong focus on throughout the entire group. So -- but that was the first really strong order we got, and we expect to see more from that side.

Okay. That sounds great. And then the second question here on the Spectre acquisition. You only own -- I mean, bought a part of it, a large part of it. Why not a 100% takeover?

That's a super good question. Because the owners -- the previous owners, they have a strong belief in the development of the company, and they would like to sit in for some years more to take part in that, and that's why we got the opportunity to buy 75% and then we did it because, of course, we have an opportunity to buy them out after some years. But I think it's very positive that they stay in because they believe strongly in the business case and the model. So that's why.

Is it possible to indicate then its current trading? We have seen a lot of, I mean, market volatility and consumer sentiment change amid the current macroeconomics.

I think to be fair, we have not closed the business yet. So we'll come back on that a little bit later. But I can say that -- as you also saw when we made the announcement, and expect a DKK 1 billion turnover and EBITDA between 15% to 17%. And I still think good momentum in that business because they are supplying high branded global companies that have good momentum. But we'll come back on that a little bit later, Wei.

Okay. But it is also up against some of the giant international peers. And if you're looking into the market, the end market, I mean, we have seen the Chinese, very large [ sporty ] companies, they are buying Western brands. And is it sort of -- this kind of industry consolidation, is it opportunity or threat? I mean, how do you view it?

I really see it as an opportunity. And you have to see also -- remember that we are a supplier. We don't design or have own brands or so on. We are really working with the largest branded companies globally. And I really see that as an opportunity because we are super efficient and one of the best companies in really making very advanced high-level outdoor garments. So I see it as a good opportunity to benefit on that, yes.

Okay. And then next question here, when it comes to the capital allocation. Now you have received a large amount of cash and you bought part of this Spectre and then also slightly increased share buyback. But going forward, how do you balance the capital allocation? Is it more M&As? Or should we expect an increased shareholder payout? And how do you balance these 2?

Yes, I think it will be a combination, to be honest. And we have -- we are looking into interesting opportunities also, especially on the bolt-on side. I think we really like to grow all our portfolio companies as -- where we're always saying bigger and stronger companies within Schouw. So we are looking to a lot of interesting bolt acquisition, but also timing and things like that. And then we're also very prudent on pricing and things like that. So you will see a combination, and we have to work diligently on how to allocate our capital.

Okay. Then I'll ask last question, I'll jump back to the queue. When looking to Fibertex Personal Care, you have sort of a margin improvement here. But the operating cash flow was actually quite negative here. Can you elaborate a bit?

Yes. We don't have any huge investments coming. So we expect cash flow to be strong as it always has been throughout 2026. So I think that we don't see any changes in that.

But it would be -- if I understand correctly, it was driven by increased working capital, and what is the explanation?

The working -- it could be on a -- as you know, we don't have inventories and things for a very long time in Fibertex Personal Care, maybe only 20, 30 days. So I'm not -- I can't say 100% what has been driving it. But we are not building inventory. We are not investing. So we will continue to deliver strong cash flow. I think it's a timing issue you are seeing there.

We don't have any more questions on the line. So, Wei, if you have more?

Wei, if you have a question more, you're welcome. Otherwise, we...

I'm good.

No, thank you very much for the questions. Thank you for the interest. So yes, wish everyone a good Friday. Thank you for listening in.

Good morning, and welcome to Schouw & Co.'s Q1 Report Call. Q1, our Q1 delivered a very satisfying and solid start of 2026 despite continued volatility. In fact, all our companies continue to deal diligently with uncertainties. We really benefit from our experienced leadership teams and dedicated employees across the globe.

Our top line was down 3% to DKK 7.7 billion, but we still had high activity across the board. EBITDA, however, increased 5% to DKK 591 million. This was driven by strong day-to-day focus on optimizing at all level. Also very positive to see that our EBT increased 36% in the quarter. We also continue to deleverage with a net interest-bearing leverage of 1.6x EBITDA, really continue to manage our investments and also being very prudent on our capital allocation.

Also very positive to announce to you that the next phase of evaluating an IPO of BioMar has been initiated. This morning, we sent out our ITF or intention to float, and it was announced in the market. And now we are really looking forward to the next phase of that.

So with that, moving on to BioMar. BioMar performed very well and as expected in Q1. We have to remind ourselves also that Q1 is a rather small quarter due to low activity, especially in the Salmon segment. Top line was down 6% to DKK 3.2 billion. But volume increased 7% to 315,000 tonnes. This shows also that BioMar is a company that is very dependent on raw material prices fluctuating up and down.

We really saw a strong development in our Shrimp segment. EBITDA was, however, up 3% to DKK 212 million. Here, we experienced a solid development in Salmon with a very good development in our Australia business. Shrimp profits lower due to what we call toll milling. We are building volume with large customers, and we do not yet have own capacity ready. So we need to buy in volume from other producers. Our Tech segment was impacted from change of the distribution model. BioMar continue to have a focus on broad product offering and a very sharp eye on their commercial excellence strategy.

Our joint ventures had a development as expected. BioMar is continuing to build a position of profitability in China. Return on investment remains very strong, around 30%, which is very satisfying for a company like BioMar.

Guidance maintained, revenue expected now DKK 16 billion to DKK 17 billion and EBITDA in the range of DKK 1.52 billion to DKK 1.62 billion. And I also have to note here that BioMar, they have been working hard on preparing themselves to be listed. So a lot of hard work has been going on throughout the entire BioMar organization to be ready for the hopeful next step in this case.

GPV, our electronic manufacturing service company is now seeing effects from efficiency measures and footprint decisions made over several years. Top line, as expected, down 3% to DKK 2.1 billion, but the backlog is all-time high with GPV. EBITDA, however, was up 12% to DKK 160 million. Across the board in GPV, there has been a strong focus on customer mix and optimization also brought in new customers and new products with a positive impact on EBITDA. GPV, they have full focus on securing critical components, some components like memory chips, et cetera, has been problematic to get hold on and meaning that GPV is building inventories and sourcing at a broader level.

GPV continued to prepare for future growth. They have just finished a strategic review that really confirms the potential and strategic direction of GPV. GPV maintains their guidance with a top line of DKK 8.5 billion to DKK 9 billion in '26, EBITDA, around DKK 690 million to DKK 750 million. Of course, the availability of critical components is important for delivering on this guidance.

From GPV, moving on to HydraSpecma. HydraSpecma once again delivered a very solid and positive development all over the group. Top line was up 9% to DKK 873 million. Growth was driven by what we call the global OEM segments. The renewable division had a stable level and the order book really continues to build with the HydraSpecma. EBITDA, 5% up to DKK 114 million coming from very strong margin manage and efficiency uplift. Also need to note that in 2025, Q1, there was a positive impact of DKK 12 million from real estate sale in Poland. So the underlying operational profitability is really, really strong.

HydraSpecma have a strong focus on future growth. They just acquired rather small Norwegian, HyCo to strengthen their IAM segment. It's a small business, but it's a next step into Norway. HydraSpecma is also exploiting potential in the 2 very attractive segments, defense and data center businesses and have seen a lot of opportunities there. Guidance maintained, top line DKK 3.1 billion to DKK 3.4 billion. EBITDA maintained in the range of DKK 400 million to DKK 440 million.

Then moving on to Borg Automotive. Borg, they are in full implementation of a major recovery replan. We call it Refine4Future. Top line, as expected, down 12% to DKK 444 million (sic) [ DKK 445 million. ] We still see soft markets and low demand, but also experienced certain segments starts to recover. EBITDA was down 58% to DKK 13 million, as expected. We had a negative effect from Refine4Future initiatives, driving costs to reap benefits later in 2026.

Our Newman business, as we call it, really started to recover and now show profitability. The transformation of Borg, it's really in good progress. There has been a lot of hard work around the organization to relocate production and supply chain, full focus on sharpening the market and the commercial strategy and we are still expecting DKK 100 million of savings because of implementing the Refine4Future plan. Borg maintains also their guidance, top line is DKK 1.6 billion to DKK 1.9 billion expected now and EBITDA in the range of DKK 60 million to DKK 100 million.

Then looking into Fibertex Personal Care. Fibertex Personal Care is really facing increased volatility due to the Iran-U.S. situation. Top line decreased as expected 9% to DKK 404 million. Market conditions, particularly in Asia, remains tough and fierce. But Fibertex Personal Care is really having a lot of activities to mitigate the situation. EBITDA was down 5% to DKK 47 million. Here, we're coming from effect from lower volumes and also raw material fluctuations. The print business once again showed solid margins.

Fibertex Personal Care really have full focus on day-to-day operations. It's important for them to secure raw material at the best possible prices, but also to be certain that we can have access to raw materials, also full focus on delivering contracted volume to core customers. Fibertex Personal Care have been working a lot with developing new customers and selling innovative products into the market. Guidance maintained despite the volatility, top line DKK 1.5 billion to DKK 1.7 billion expected, and EBITDA now DKK 140 million to DKK 160 million.

Then moving on to the last business in our portfolio, Fibertex Nonwovens really delivered a strong profitability uplift in also very challenging markets, but super nice to see that they continue to grow. Top line increased 10% to DKK 638 million, growing volumes both in the U.S. and in Europe. EBITDA was up 48% to DKK 64 million, a strong effect from improved efficiency in our U.S. operations and also professionalization of setup delivers a really huge uplift. Now we also see that the large investments we made over several years really starts to pay off.

Fibertex Nonwovens, they are well prepared to continue to grow both volume and profitability in future. New spunlacing line, as we call it, has started to be implemented in the Czech Republic. We expect production -- commercial production to take off during second half of '26. A lot of very innovative new products being introduced to the market, and we also see strong requests from Tier 1 customers really wanting to cooperate at a rather large scale.

Fibertex Nonwovens maintained their guidance, top line DKK 2.3 billion to DKK 2.5 billion expected, and EBITDA still DKK 210 million to DKK 240 million. Also with Fibertex Nonwovens, we need to take into consideration that raw material and energy prices still continues to fluctuate.

So let me finish off just looking at the overall guidance for Schouw & Co. as a group. Full year guidance maintained. We expect the turnover to be in the range of DKK 33 million to DKK 35.5 billion and EBITDA DKK 2.9 billion to DKK 3.2 billion. And of course, all companies, solid focus on delivering within their guidance. So I think with that note, I will open up for questions.

Yes. There's Wei from SEB.

I have plenty of questions for you today. I'll start with BioMar. You announced the intention to float. But given the elevated macroeconomic uncertainty and also the stock market so volatile, what makes you confident to pursue the IPO amid such volatility?

Thank you for asking that, Wei. I think we have been looking at a lot of different factors, and I think when we conclude on all of them, we see that things has been more stable. I think the most important, not the most important one, but you also know the VIX indicator now really is quite positive. We also have been talking to a lot of investors looking for investing in stable companies. And so we think the window is there, and we think also it's time for BioMar now to take the next step. So we are quite optimistic on going to the market with BioMar, believe that timing is right.

Okay. Great. And could you also remind us the use of proceeds?

Yes. I think we have said over several times that we have a strong business model within the Schouw & Co. We continue to invest in new companies or you could say, we have 2 ways of investing. One is to continue to develop the companies in the portfolio, what we call bolt-on investments. We've been doing that over years. And then, of course, also looking for new platform investments. So of course, now more focused on finding a new platform investment and then really pushing hard on our companies to come up with ideas for value-creating bolt-ons.

So that's the 2 things, continue our model and of course, be patient because we should not just buy for buying a company. We need to do the right things and continue to create value. So that's the strategy. And we see plenty of opportunities out there.

Okay. And so I understand that the platform, you mainly referred to the Shrimp and other special segments?

We have a very clear investment strategy saying that we are investing in business-to-business companies. So that's what we are looking into now and really continue that because that's where we have our strengths. We know a lot about running business-to-business companies, need to be international oriented, need to have a strong position in the market, et cetera. So that's just continuing our strategy and really pushing on that.

Okay. And then next question. You have already talked a bit about the capacity expansion in Ecuador. Can you give an update on that? Now it's sort of diluted -- I understand, diluted the Shrimp EBITDA here in Q1. And what would be the expectation for Q2 and the remaining of the year?

Some of the capacity will kick in later in the second half of 2026. So we will still need some toll milling. But there's a lot of things. One thing is toll milling, but also, and you know that also, Wei, that of course, product mix, things like that means a lot for BioMar. And it is a rather small quarter. So we expect things to improve, product mix to be a little bit different. But we need capacity kicking in late 2026 and then we will see improved profitability and margins on that.

Jesper Lund, welcome. You're muted, Jesper. Next one then. Wei, you are -- please, you are on the line again. So yes.

It seems that I need to moderate the Q&A session today.

Yes, that's super nice. Thanks for doing that, Wei.

And so next question, maybe a bit nitty-gritty. So looking at the income from associated companies. This quarter, it shows a decline and you have kept full year guidance unchanged. I was wondering, any quarterly phasing of the revenue income?

Yes. So there's a lot of things that can fluctuate in that. We have BioMar's regulations. We have price setting of especially our farming setup in Chile, Salmones Austral, and so on. So there are things that fluctuates, and looking into forward-looking on salmon prices and so on, we still expect to keep the guidance. So within the quarter, things can fluctuate.

Clear. And then on the tech revenue income. I know it is project-based, but you showed a year-over-year decline here. What's the visibility do you have for the remaining of the year?

Yes. Just to make that understandable is that we made a totally new distribution model, meaning that we closed the cooperation with a big distributor in one of our very, very big markets, and they had materials in stock and things like that. So they are selling out of that. And we are moving from doing the distribution more on our own and then also moving into a so-called SaaS model. So that, a lot of things is going on, but we expect them. And we really see strong opportunities and the right choice of model in the future.

Can you comment on what is the initiatives by doing the direct distribution?

It's more that we go direct, try to link it a little bit more also on feed sales and things like that. So it's rather complex that we try to build more share of wallet with the large customers, et cetera. So we can use that also for getting attractive feed contracts and so on.

Yes. Jostein, you're on.

I'm Jostein Matre, and I'm a journalist at IntraFish. I apologize for coming in a little bit late to this conference. So my question might be something that you've already spoken about. But can you tell me a little bit because the IPO with BioMar has been on the table for a while now. Can you tell me a little bit about why now feels like the right time to do what you're doing?

So the reason why it has been on the table for a while is, of course, it takes a long time to prepare a company for becoming listed and BioMar was not listed. So it has taken a very long time, and not a very long time, but the time it has taken to prepare and do things. So that's the way it has been doing. And then, of course, we expected it maybe to have been out with the intention to float a little bit earlier, but then a lot of volatility in the world came up. And then we are in a situation where we do not need to do the listing of BioMar, but we do think it's the right thing. So we looked into when it's the best value creation also for Schouw & Co. as a shareholder and when is the best timing for bringing such a great company to the market. So that's the reason behind.

And just one quick follow-up then. What is your expectations going forward now then?

Yes. Now we have launched what we call this intention to float. That means, of course, that we are one step closer to the IPO. Then we will now, we will use some weeks to look into the market and get feedback from the market. You can also see now all analyst reports, they are in the market. We are talking to shareholders really getting a feel on who is interested and the potential shareholders who is interested in buying, et cetera, et cetera. And then within a few weeks, we will decide 100% if we are floating.

So that's the phase we are in, things are much closer and still intention, as we have said it over a long time, our intention is to float in the first half of 2026. And as we are in May now, the time is closing in. But we do it if it's right.

Is that enough time?

Yes, absolutely. There's a clear time line now on how to do that, yes.

Jesper Lund, we try with you again.

Yes, let's see if it's still -- if it works here from here on. Can you hear me?

Yes, we can.

Okay. It's also about BioMar. I was thinking, as many probably also do, can you tell me something about the -- how many times EBITDA, a company like BioMar can be sold at? And also how many percent do you minimum keep of the company after listing it?

Yes, very interesting questions. But one, we do not really comment on this because we now have to look into -- I think you should look into the analyst report and see what they are saying. And we have not decided the size, what we are selling yet, depending also on what will come out of the next 3 weeks investigations we are doing in the market. So that's as it is now. But I think look into the analysts report and there are some indications on what they think a company like BioMar should be traded at.

Yes, we have one more. Thanks, Wei. You're welcome.

And now a change of topic. A question on the GPV. You talked about the higher level of order intake in Q1. And so what end market was driving that momentum? And also, if you can comment a bit on the supply chain risk and also the cost inflation?

Yes. So the order intake has been driven by better, more optimism or what you say with some of our core customers. We are supplying a very big blue chip customers around the globe. They have a more positive outlook. Then we are also looking much more into the data center segment, which you could say, in fact, they are exploding. So we see business coming in also from supplying into data centers and so on so. So we are well positioned in growing segments. So that's the reason behind.

Looking into the supply situation on chips and so on, it has been a difficult and still difficult, and I don't really have a very clear answer on it more than we have been in these situations before we are used to handle it, and we have, you could say, all hands on deck to try to get a grip on it. And I think that we are in a good situation, but prices are increasing. But we can pass on most of these increases to our customers due to our contracts and so on.

Okay. Can you elaborate a bit on your exposure? The revenue exposure to the data center segment?

Yes. Our exposure is that we look into GPV, they are into data segment, HydraSpecma. So that's the 2 companies that are really seeing opportunities in supplying data center. GPV, supplying electronics for that, and HydraSpecma more looking -- they are into cooling and lubrication and so on in the data center. So we see a lot of interesting opportunities and we are really pursuing. And we, for the time being, we are talking about the 2 Ds, the data center and defense, and we really need to push and explore ourselves into these segments.

Okay. But you have not answered my question, the revenue exposure. Can you specify?

Yes. No, we are not disclosing that for the time being. But revenue is not significant, but it's increasing, Wei. Sorry for that, yes. So that's the way.

Okay. Great. And next question on the Fibertex. I realize that the raw material is -- could be related to the plastic, which are -- we see a lot of price volatility and now it's more big inflation. So how much of your raw material are exposed? Can you also comment on this?

Yes. If we take Fibertex Personal Care, the one that is most exposed, all their raw materials there are exposed. They use one, more or less, one raw material called polypropylene, 100% oil based. And then there, we are dependent on 2 price settings. One is in Europe, and the other one is in Asia. One is in euro, one is in dollar. And the price has really exploded if we take the euro pricing in Europe, then price used to be around EUR 1,200 per tonnes. It's now around EUR 2,200 per tonnes and so on. So, of course, heavily exposed, but the good thing is that we have passed on mechanisms to all our customers. Of course, we are always lagging a little bit after when things are increasing like, yes, to say so. But we have changed and been able to change the way we can do these pass on. So we are moving from a quarterly basis to a monthly basis now.

So we are exposed, but what we are most concerned on is not the pricing, of course also, but we are more concerned about availability of raw materials. So that's how we see it, yes.

Okay. And just looking at your suppliers, I mean, what is risk that you cannot get a supply?

Yes. Of course, there's a risk. But I think, yes, but it's an interesting question. And we are thinking about that every day. But I think we have been in the business for so many years. We have been together with these large suppliers for many years, of course. At the end of the day, they will find a way of distributing it, et cetera. But it is cumbersome for the time being. But so far, knocking wood a little bit, we have been able to have the needed supply.

Okay. Fair enough. Last question, on your cash flow, which was a bit weaker this quarter. And then you can see it's due to the working capital. Can you also elaborate a bit on the dynamics? And any change for your full year expectation?

Yes, as you know, again, as you said, for a quarter, the cash flow can be up and down. And we have also built a little bit in net working capital and so on. But we still expect to deliver quite significant cash flow in 2026. And really now we are getting into the season where we start to build cash flow. So still no concerns on our cash flow situation throughout 2026. Thank you very much, Wei.

Thank you for the questions. Okay. Thank you very much. Thank you for listening. Thank you for the questions, and goodbye from us.

Welcome to Schouw & Co.'s 2025 Annual Report. We delivered a solid performance in a very difficult and turbulent environment. In fact, to withstand that, we have taken strong measures and implemented them across our companies to safeguard profitability and our market positions.

Our top line was slightly down 1.6% to DKK 34.1 billion. We had a negative impact from lower raw material prices and ForEx. Our EBITDA was also down 1.8% to DKK 2.88 billion. However, it also included one-off costs in the magnitude of around DKK 100 million. 5 out of our 6 companies delivered a solid EBITDA uplift.

We took an impairment of our Borg company of -- goodwill in Borg company, and it was a noncash effect of around DKK 300 million. Of course, this shows a negative impact on our EBIT and profit before tax. Our cash flow, however, was again very, very strong, and it came out at a record high level of DKK 2.9 billion. In fact, a cash conversion of around 100%. So that was very satisfying.

Our net interest-bearing debt and leverage is also at a very satisfactory level. Also, I have to stress that the work on an IPO of BioMar really continues at speed. We are very determined to do an IPO and also expect to float in the first half of 2026. Of course, depending on market conditions, if they are right, we see a lot of turmoil for the time being in the markets, but we are still very determined to float this great company to the market.

And from that on, just looking into our net -- sorry, something happens there, looking into our net working capital throughout the year, reduced by DKK 900 million, driven by significantly inventory reduction. In fact, we have had a solid focus on inventories and debts over the last many years, and we really have a strong focus on capital and cash flow, and it pays off.

Our NIBD, as I said, decreased significantly, and our solid cash generation also delivered an NIBD reduction. CapEx at a very low but sufficient level. We now have a net interest-bearing debt of DKK 4.4 billion, which gives a leverage of 1.5x. Of course, we have also focused on delivering significant dividends and share buybacks to our shareholders.

From there on, on to BioMar. BioMar really built a strong growth momentum and very solid profitability in 2025. All our 4 segments delivered volume growth. Top line was, however, flat, DKK 1.65 billion (sic) [ DKK 16.5 billion ], but volume increased 13% to 1.5 million tonnes. Growth was primarily driven by Chile and Ecuador. EBITDA was up 2.7% to record high DKK 1.52 billion, very satisfactory development in our selected species and tech segments. But across the segments, we saw good development.

We also really had a strong outcome of continued and solid margin focus, and it's really an important driver across all our segments. Working capital significantly reduced to DKK 1.1 billion. Our joint ventures and associated companies delivered also a profit uplift in 2025. We recovered earnings in Salmones Austral, our -- the stake we have in the Chilean salmon farm, Salmones Austral; our joint ventures in China, building a significant market position in high-value segments, and we really have positive outlook for our China joint venture in future.

Our 2026 guidance built on continued profit uplift. We expect now turnover in the magnitude of DKK 16 billion to DKK 17 billion, EBITDA around DKK 1.5 billion to DKK 1.62 billion. And we really also here see a continued good balance between our segments and expect all 4 segments to deliver uplift in 2026. From BioMar then to GPV, our electronic manufacturing service company, GPV markets seems to be gradually normalizing. Top line, however, as expected, 2.5% down to DKK 8.7 billion, but we have seen a very solid and good order intake increasing into Q4.

EBITDA was up 2.5% to DKK 641 million. Here, we really saw effects from efficiency and optimization focus across all production facilities in GPV. Gross margin has increased quarter-by-quarter during 2025. We also took DKK 17 million in one-off costs to footprint and severance payments throughout 2025, affecting EBITDA, of course, negatively.

GPV has really put huge efforts into implementing a new footprint strategy across geographies. We are consolidating productions in some countries. We are focusing our production platforms in what we call best cost countries. And we work also hard on establishing mega sites to drive scale and efficiency in GPV.

We have also conducted a strategic review, and it really confirms the long-term potential for GPV. We see and have a very solid project pipeline and also are facing very interesting strategic opportunities for future. Our 2026 guidance is built on delivering on our optimized footprint. Top line around DKK 8.5 billion to DKK 9 billion. Strong uplift expected in EBITDA, DKK 690 million to DKK 750 million.

And also here, we really build this guidance on excellence programs and our footprint decisions. Then from GPV on to HydraSpecma, that really continued a very positive and profitable development. Top line, we're growing 5% to DKK 3.2 billion. We saw very strong activity in our global OEM segment, and also our renewable division kept positive momentum throughout 2025. That also meant that the EBITDA was up 15% to DKK 389 million.

Here, we also have to look into the EBITDA and say we had a DKK 14 million positive effect on EBITDA from sale of a facility in Poland, but however, also a DKK 30 million negative effect from relocation cost to Poland that, of course, not will materialize in 2026. HydraSpecma really were driving solid margin management and commercial excellence across the board.

Hydra plans also for future growth and continue to build on profitability. We are finishing our 22,000 square meter facility in Tianjin in China. We are strengthening positions in global OEM and renewables and also starting to build momentum in the very interesting defense segment. 2026 guidance built on a very strong order book. Top line expected now to be DKK 3.1 billion to DKK 3.4 billion and EBITDA in the magnitude of DKK 400 million to DKK 440 million. So also here, we expect a positive uplift.

Then moving on to Borg, our company that do remanufacturing of parts for the automotive segment. Borg had a very difficult and challenging 2025. In fact, the reman and the spare part business and market in Europe in general was challenged. Top line for Borg was down 12% to DKK 1.7 billion. Our brake caliper segment was down on volume, but that was mainly due to Chinese import substituting our reman products.

Newman segment, as we call it, was also a bit lower on volumes compared to 2024. Our EBITDA was down to 0, no positive EBITDA in 2025. A lot of reasons to that, lower sales, margin pressure and, of course, continued cost increases in Poland had an impact, but mostly, we had some nonrecurring cost of around DKK 17 million, not expected to come in 2026. And these nonrecurring costs, most of them are related to a really transformation plan that was built and implemented in 2025.

We call it Refine4Future, expected to deliver DKK 100 million improvement built on 4 pillars to drive change and profit uplift, built on renewing our manufacturing footprint, focusing strong on commercial excellence, new logistics setup and then also looking into our SG&A costs at large. We have decided to close our large U.K. facility and relocate to Poland, a rather big move that we will see effect of in second half '26.

Then we're also upscaling our new Tunisian factory that's situated in what we call a best cost country area. So a lot of opportunities there. 2026 guidance built on being a transformation year, top line expected to be DKK 1.6 billion to DKK 1.9 billion and EBITDA around DKK 60 million to DKK 100 million. So expect to start to bring Borg back in profitability.

First half is expected to be affected from a relocation and ramp-up and really see the strong uplift in the second half of 2026. Then from Borg on to Fibertex Personal Care, who delivered improved profitability also in a rather challenging market. As some of you might recall, Fibertex Personal Care has been challenged in Asia due to too much capacity and lower birth rates in China. Top line decreased as expected, 9% to DKK 1.7 billion.

As I said, volume lower in Asia, but slightly better than expected. EBITDA was up 9% to DKK 203 million. Also built on positive development in raw material prices. There's been a strong focus on margin-enhancing product mix. And our print business in U.S. really start to delivering a solid profit uplift. We are setting up for future with a very clear strategic focus. We have built a supply chain to service and send volume to U.S. and Europe from Malaysia to utilize our excess capacity out there.

We are bringing new interesting, we call it, elasticated concept to the market and expect that to be launched late 2026. 2026 guidance then expected to be in top line of around DKK 1.5 billion to DKK 1.7 billion. EBITDA declining compared to 2025 but also built on global geopolitical tension could drive increasing raw material prices. So a little bit uncertainty around the raw material prices for Fibertex Personal Care. EBITDA expected to be DKK 140 million to DKK 160 million for 2026.

Then finishing off with Fibertex Nonwovens that delivered solid growth and improved profitability during second half of 2025. Top line flat, DKK 2.25 billion, but volume up 5% and volume build was really made, as I mentioned, in second half of 2025, mainly the top line -- flattish top line was mainly driven by ForEx and raw material -- lower raw material prices and then also rather soft demand in general in what we call our legacy markets in Europe.

EBITDA, however, was up 4.4% to DKK 203 million. And very positive that our U.S. facility really continues to deliver profitability improvement, very solid development, but then offset a little bit by very soft overall market in Europe. Also a strong focus on added value products and really increasing share also delivering EBITDA uplift or profitability uplift. FIN has new capacity and products ready for 2026. Our new line in the Czech Republic is starting up with an attractive pipeline expected to start to deliver first commercial products in the second half of the year.

And then we also have a new very interesting concept ready to deliver to a global blue-chip customer. 2026 guidance built on positive momentum created in the second half of 2025. Top line now expected to be DKK 2.3 billion to DKK 2.5 billion. EBITDA around DKK 210 million to DKK 240 million. And here, we also see, as I mentioned, effect from efficiency programs and margin value uplift in fee.

So just moving on, looking into our investments and CapEx. Also in 2026, we, of course, expect to have CapEx investments. We continue to have very strong focus on capital. We want to drive cash flow. We want to, if possible, to continue to reduce our net working capital and also have a prudent view on CapEx and spendings in general. However, Schouw & Co. also continue to grow and invest when needed.

So in 2026, CapEx budget, CapEx expectations in the level of DKK 700 million to DKK 900 million, where the largest investment is coming from capacity expansion in the very interesting and profitable shrimp market in Ecuador related to BioMar. So finishing off with a fast view on our overall EBITDA guidance. Again, as I have been elaborating throughout the presentation here, we expect to deliver profit uplift, in fact, in 5 out of 6 companies, profit uplift expected. And EBITDA now expected as we also have guided the market on earlier in the level of DKK 2.9 billion to DKK 3.2 billion.

We really see strong momentum across our portfolio, built on product innovation and solutions for our global customers. We have full focus on running commercial excellence programs also across the board. And we have taken a lot of footprint and efficiency measures over the last years and really expect also to benefit from that in 2026.

So with that, I think I would open up for questions, but also emphasizing that we are still pushing on our BioMar IPO if market conditions really starts to come out positive. So with that note, opening up for questions. I think we already have Wei from SEB. So welcome, Wei.

So 2 questions from my side. Firstly, on the BioMar, the working capital improvement we see here in 2025 and especially in Q4, can we assume this would be the run rate, going to the coming years? And I'll do the next question later.

Yes. Sorry, yes, one more...

I can do the next question later.

Okay. No, I think -- thank you for the question. I think it's a rather -- it's a low rate. It's around 7.5-or-something percent. And I think it's very, very well managed. But I think looking a little bit ahead, maybe the net working capital would be around 10% or something like that. But BioMar is really, really handling the net working capital very well, but I think we should expect it to be around the 10% level.

Great. And then also on BioMar, the CapEx guidance, is it mainly driven by the expansion in Ecuador? And you mentioned this DKK 250 million total capacity expansion. Can you add a bit more about the time line?

Yes. I think -- and really, to be honest, I think BioMar, they have to work very hard to really bring the DKK 250 million or to use DKK 250 million in 2026. But its decisions are made on capacity expansion, looking for land. There's a lot of things going on, and it can take time, but it's more also just to say that the new capacity investments in Ecuador will be around these DKK 250 million, and let's then see how and when it will materialize.

Okay. And if I can ask also a question here on Borg. Just want to understand your long-term strategic thinking for this business. I mean it seems that the Borg experienced a sort of structure issue. But then looking at the current ROIC, which is negative, even we assume some improvement, it is still very low level. So what is your expectation and definition to be sort of to improve this business to a long-term value creation?

Yes. No, I think a very, very interesting question also. We -- of course, now we are really focusing on the short term and very hard-nosed on implementing what we -- I said, the Refine4Future strategy. We are still a strong believer in circular economy. We think there will be a pushback on circular economy. And Borg, they are placed in a very good position to capture that.

We also think that the strong measures we have taken on footprint, moving to Poland, transferring to Tunisia and really will develop the competitive edge for Borg. So we are still long-term positive on opportunities, on circular economy and also building position, but we have to focus now to deliver on the plan short term. I think that's the main point, and that's what the Borg management really focusing on for the time being.

Yes, Asmussen, welcome.

Is it possible today to give any kind of indications about your expectations for the value of BioMar after the IPO?

To be honest, Per, it's a very good and very interesting question, but it is not possible. We are not -- of course, we have our thinking on it, but we cannot disclose it for the time being because we don't know yet. You need to go out in the market and really do some investigations and so on. And of course, also, I think everyone understand that what happened over the last week and so on in the market and so on really also said, okay, let's wait and see and just let things stabilize.

So -- but of course, it's a great company. There's a very interesting value embedded in BioMar and also sitting on our books. So we expect an interesting value-creating IPO, Per.

No further questions. Okay. So yes, that finishes off our presentation, and thanks to everyone for listening on my presentation. Goodbye, and thanks.

Good morning, and welcome to Schouw & Company's presentation of our Q3 results. Overall, we had a satisfying and solid development in very difficult markets. All our companies, they continue to deal with uncertainties. I think that we have to accept that this is the new normal. Strong measures has been taken across the board to safeguard profitability and market positions.

Our top line was down 4% to DKK 9.2 billion. EBITDA, however, increased to 5% to DKK 878 million. We have had very strong focus on pricing and costs. The quarter was also impacted by DKK 54 million of one-off costs. Our cash flow was again very strong and came out at DKK 894 million. We kept our investments at a very modest level and also satisfying to see that our net interest-bearing debt and leverage now is at a very good level. Just also to conclude on the evaluation and work on a potential IPO of BioMar continues. If we decide to make it happen, then it's expected to be in first half of 2026.

Moving on from the more general view and then to BioMar. BioMar performed very well in a quarter where they faced severe biological difficulties in Norway. Q3 is a very important quarter for BioMar. The top line was down 4% to DKK 4.9 billion, but volume increased 9% to around 470,000 tonnes. All segments delivered volume uplift. EBITDA, however, was up 10% to a record high DKK 510 million for the quarter.

We saw a very strong development in selected species and our tech segments. Also across the board, solid margin control has been a very important driver for our EBITDA uplift. There's also a continued focus on our very broad product offering to all segments in the market. The joint ventures in BioMar also continues to deliver. We are building a strong position and profitability in China.

Working capital was significantly reduced to now DKK 1.65 billion. Guidance for BioMar is narrowed. We are close to the year-end. So turnover now expected to be DKK 16.3 billion to DKK 16.7 billion and EBITDA now in the range of DKK 1.49 billion to DKK 1.53 billion. So still expected to be in the guidance we announced at the end of Q2.

From BioMar, then moving on to GPV. GPV markets, they are still fluctuating, but we also see that they are preparing for a rebound. Top line with GPV was as expected, 3% down to DKK 2.15 billion. There was a lot of key customers facing soft market demand across their geographies. And if they face a soft demand, of course, we will also feel it at GPV.

EBITDA down 8% to DKK 178 million. But looking on a quarter-to-quarter, then we had a margin uplift. Also, we had a positive effect from reversal of inventories in 2024. So all in all, solid development with also one-off costs in the quarter for restructuring of the magnitude of DKK 10 million.

GPV continued to future-proof. They are doing consolidation and rightsizing of their factory footprint. They are really building on a strong pipeline, taking in new customers and also trying to offset supply chain challenges coming up from Chinese suppliers. Guidance is narrowed. Top line expected now to be DKK 8.7 billion to DKK 8.9 billion and EBITDA in the range of DKK 620 million to DKK 650 million, including expected one-off of DKK 10 million to DKK 15 million in Q4.

Then moving on to HydraSpecma. They really continues the positive development and drives and delivers very solid profitability. Top line was up 10% to DKK 747 million. We saw a very strong activity in the global OEM segment and also good to see that the Renewable division again growing. EBITDA was up impressive 22% to DKK 97 million. HydraSpecma has really worked with a solid margin management and commercial excellence across the board. Also in the EBITDA of DKK 97 million, it included a one-off cost of around DKK 10 million.

HydraSpecma continues to plan for future growth. They are now starting building a 22,000 square meter facility in Tianjin in China, expected to be ready in Q2 '26. They have also a lot of focus on driving innovation and solutions for the hydraulic market. Guidance uplift based on very solid performance. Top line now expected to be DKK 3.1 billion to DKK 3.2 billion and EBITDA in the range of DKK 380 million to DKK 400 million for the year.

Moving on to Borg Automotive. Borg is really the company that has been most challenged throughout 2025 in the Schouw portfolio. They continue to face fierce competition and rather soft demand in all segments. Top line for Borg was down 14% to DKK 424 million, especially the brake caliber segment was down on volume, mainly due to Chinese import difficult to compete. EBITDA down by 72% to DKK 10 million affected from different things, lower sales and, of course, continued increase of production cost in Poland. And then unfortunately, we had to do a write-down in France of DKK 24 million due to unaccounted bonuses in the quarter.

We need to continue to transform Borg to mitigate the development. We disclosed last quarter, the Refined for Future plan expected to drive a DKK 100 million uplift, and the plan is in solid progress. It's mainly around our footprint and commercial excellence strategies, also looking into a potential closing of the entire U.K. operation.

Borg is downgrading because of the write-off, because of one-offs for the Refined for Future. Top line now expected DKK 1.8 billion to DKK 1.9 billion, EBITDA in the magnitude of DKK 60 million to DKK 80 million, including one-off costs to Refined for Future of around DKK 40 million and then the unfortunate write-down in France of around DKK 30 million for the year.

Moving on to Fibertex Personal Care. They again, delivered profitability uplift in a very challenging market. Top line decreased as expected, 11% to DKK 420 million. We saw lower volume in Asia, but positive also to see slightly better than expected. EBITDA, however, up 33% to DKK 54 million. We had a positive raw material effect, but also our print business really delivered solid margin uplift in the quarter.

FPC is setting up for future. We are building a supply chain out of Malaysia, trying to ship volumes into U.S. and Europe. We continue to innovate and develop advanced materials, especially elasticated products. We also managed and are able to give a guidance uplift, top line DKK 1.6 billion to DKK 1.7 billion and EBITDA now expected to be around DKK 180 million to DKK 200 million.

Closing off with Fibertex nonwovens, where we continue to see the -- our U.S., very important U.S. market continue to see growth. Top line, however, down 1% to DKK 556 million, but volume up 7%. The important auto segment still soft, but still at a rather satisfactory level. EBITDA also up 23% to DKK 52 million. And as mentioned, U.S. continues to deliver and also they deliver solid profitability improvement. Also our added value products now delivering profit uplift, and we see increasing share coming from these products.

Fibertex nonwovens, they are finalizing their investment plans, a new line in the Czech Republic expected to be ready and starting off Q1 in 2026. So now we have a very solid capacity platform to build future on and expect also to continue to grow volume in the high-value segments for FIN. Guidance narrow top line now adjusted DKK 2.2 billion to DKK 2.3 billion and EBITDA expected to be in the range of DKK 200 million to DKK 220 million.

Closing up with a view on our guidance list here, full year guidance narrowed within our guidance band. EBITDA now expected to be DKK 2.85 billion to DKK 3.02 billion for the group. And there, we included one-off costs of around DKK 100 million for footprint, closing down, write-offs, et cetera. So really also preparing Schouw & Company companies and the group for future on that.

And with that remark, I will open up for questions.

Emil, welcome.

First of all, congratulations with a very strong operational performance in BioMar this quarter despite some biological headwinds in Norway. I will start off with a question of a more general nature. So in the report, you mentioned that potential proceeds from a separate listing of BioMar are expected to be reinvested in the existing business with the possibility of expanding the portfolio to a new platform investment. So do you have anything in pipeline in terms of a new platform investment? Or are these just the main priorities as of now?

Yes. Thank you for commenting on that because I think it's important also that we are emphasizing that we continue to build on the strategy we have with Schouw & Company, and that's to build a portfolio and platform of business-to-business companies. So looking at the platform investments, we have, of course, always something in the pipeline.

But then we are looking at the companies we can match the existing companies business to business, a certain magnitude and so on. But of course, we do not have anything specific at the table, but always working on that. And then within the portfolio also, we still see rather interesting opportunities to build further and grow these companies. So that's the strategy we build on.

Okay. And would this -- with the potential IPO during first half of next year, would this be something that we should potentially expect already during 2026? Or are we looking further out in the future in terms of adding a new platform investment?

Yes. No, I think, Emil, what is very important is that we do the right move. We do not buy just for buying. We are very cautious on that. And of course, would be super if we could add a new platform investments during 2026, but we cannot guarantee anything on that. But we -- I think we need to be cautious on the business case and the opportunities and so on. But there are interesting opportunities out there.

Makes sense. Moving on with a few questions on BioMar then. So the first question is on volumes and market share. So you reported 9% volume growth year-over-year. So could you elaborate a bit more on how this developed across key regions because regaining market share is a strong strategic focus of yours. And I recall that you mentioned particular opportunities for higher volumes in Chile during the second half of 2025. So has this developed in line with expectations or anything we should be aware of?

Yes, we have added new contracts in BioMar in Chile, and we have added contracts volume also to existing contracts. So we have added and taken market share in Chile. Also in Norway, we have had seen a good development. But however, as you also know, there has been a volume decline because of biological issues, sea lice, et cetera, et cetera. But we have had a volume uplift as we also mentioned starting 2025 that maybe we have been too cautious on not taking volume due to profitability and so on.

Okay. And then also a question on the shrimp segment because volumes is up 23% year-over-year, revenue is up 10%. But this is basically growth rate that's almost on par with the first half of the year. So it seems like you continue to gain strong market shares in this segment. So any comments on the, I would say, longer-term outlook because I know you have high expectations for this segment. So what is the potential here? You have moved more towards larger customers. But yes, any additional comments on that?

Yes. And I think you just mentioned it. We have deliberately moved to larger customers because we want to continue to grow and also to take off risk in this segment. And if we really want to grow, we need to tie a team up with the larger customers. And we really see strong growth potential within the shrimp segment and also looking at some attractive long-term contracts there.

Okay. So it seems like a good outlook for this business in order to continue to gain momentum in this space.

Yes, and that's well aligned with our strategic priorities. So definitely, yes.

Good. Then moving on, just with the last question on HydraSpecma before I jump back in the line. So last quarter, you talked about postponements in the renewable divisions. And this quarter, it's contributing positively to the growth. So these postponements, can we conclude that they have not continued into Q3? Is that fair to assume?

Yes, not with the same magnitude as in Q2. We have seen postponements, but we have also -- we have seen an increase and also improved efficiency and profitability around that. So it's not -- they are not postponing as much as they did in Q2, yes.

Claus Almer.

So first of all, congratulations with the net working capital performance, not least to Carlos, it seems he is doing a great job in BioMar.

Yes, absolutely. I fully agree. Thanks.

So a few questions regarding BioMar. The significant improvement within tech, is that a new sustainable level? Or how should we think about that? That's the first one.

We have seen a new level of profitability, definitely also because the last years, we did a lot of development, reorganization and so on. But of course, it's a project business, project sales, but we are building more and more on recurring revenue, software and things like that. So we will see a profit uplift. We have a very strong profitability in 2025. I'm not saying we're going to have the same in '26, but really expect the tech to continue to deliver at a very high level, yes.

Yes. So it's more -- you mentioned strong this year. But should we just put into the model that it is volatile. So Q3 may be a bit out of the ordinary or maybe a little bit of help on this one would be appreciated.

I think I can say, Claus, you know also project business. But of course, we expect to continue to grow, but you will see fluctuations over the quarters depending on project, when will it be delivered and all by a sudden you get an order for 1 quarter and things like that. But we expect still strong profitability, but you will also -- you should expect to see variations over the quarters.

Okay. And then also BioMar, this double-digit EBITDA margin you did in Q3, and I think this is also what you're implicitly guiding for Q4. Should we expect that to continue into 2026 without guiding for next year, obviously.

Yes, we are not guiding. We have not finalized the budgeting to be honest. Of course, we will do whatever we can to keep our margins and really work around recipe optimizations and things like that. But of course, you also know in the first quarter, volume is lower, scale is lower, et cetera. So I don't think you will see the first quarters with the exactly same margins. But we really work on that, and it's part of the strategy in BioMar that we improve our margin to have a strong focus on commercial excellence and margin management, and it pays off now.

So I guess, maybe to ask in a different way. So what we saw in Q3 and what is guided for in Q4, is that more a permanent improvement? Or is there any, let's call it, one-offs profit in those numbers?

I wouldn't say there are any one-offs. Of course, also the impact from the Tech division should be mentioned because there has been a very strong profitability in the Tech division. So -- but we don't have any one-offs and so we have a solid margin management program running, and we will continue doing that. That's our intention. Absolutely.

Sounds great. And then just my final question, and this goes to the GPV division. So you are taking down the high end of the revenue guidance, but you are increasing the low end of the EBITDA guidance. Maybe you could put a bit more color on that difference in the guidance change.

Yes, you will see a lot of operational efficiency in that. You also noted that we have done a lot of restructuring and factory footprint, et cetera, over the year. So that's -- now we see impact on efficiency, et cetera, on that. So that's a key driver in what's going to happen in GPV. And of course -- and even we expect also to build even more margin over the years because we have done so much on the factory footprint and closing and relocations and things. So we see -- start to see benefit from that.

[indiscernible], welcome.

Jens, how much is it possible to tell today about the expected revenue or market cap of BioMar in case of a separate listing. Can you say anything about the expected multiplier or anything?

It's a great question, [indiscernible], and I would -- I wish I would because, of course, that's one of the key triggers for are we doing it or not. But we do not have any exact numbers on that. But of course, looking at the value some of the analysts are putting on it, then maybe there's a guideline there. But we are not commenting on it yet. We are out there doing early sounding meetings, visiting, meeting a lot of investors and so on. So it's too early simply.

André, welcome.

Yes. Just a few questions from my side as well. In terms of BioMar, can you maybe say a few words about what you see into the fourth quarter? Because in order to reach the high end of your guidance for BioMar, it looks that it should also be quite good for Q4. So what are you seeing here?

First of all, of course, I would like to reach the high end, but I think we give a guidance spread and let's see where it is. But of course, as you know, also, volume means a lot. Biology, Norway has -- it has improved the sanitary conditions, et cetera, so less lices also. So hopefully, we will drive more volume in Norway. Also, of course, efficiency, logistics and so on means a lot.

So I think Norway, key component in it. We have been doing great, honestly, also in what we call the selected species, particularly in the Baltics. So if temperature keeps high, et cetera, at the sea, when maybe we could see a more positive offset also from Baltics. So in general, André, it's volume and it's biology and climate because we have our contracts and our margins, raw materials in place.

That's great. And is it fair to say that Q4 on volumes in Norway have started a bit on the weaker side or...

I haven't -- I'm not 100% updated on it. It's not growing a lot, but I think it's more flattish. And then normally, it starts really to decline now in November, December and maybe because sea temperatures are rather good, then we might see more volume in November than normal.

Okay. That's very clear. And maybe just another question around BioMar or more specifically Mowi. That's also something we like to ask every quarter. Is there any news that you have seen around this? What is moving behind the lines?

We haven't seen any news as I think if there were any news, they need to announce something in the market. And as we are informed, the process is still working and they haven't taken it off the table, I think. So yes, we wait and see what happens.

That's very clear. And then maybe just -- I realize you don't guide for 2026 yet, but maybe just some [ modeling ] questions. Is there anything specifically on CapEx you need to do next year as the world looks right now? Or could it remain at the current low level?

I would say there's not big things across the board. Of course, we always look into -- for the time being, as I said also, we are not looking into huge capacity expansion, could maybe be a little bit in BioMar in certain segments. But in general, no big capacity expansion. So what we are looking into more is efficiency investments, and that's not very big investments. So I think we will see a very normalized investment level in 2026.

That's clear. And then just a last question on '26 on the net financials because you have quite a lot of variable debt as far as I recall, and now you have also been reducing debt. So is it fair to think that net financing spend is going down materially next year?

Yes, if we don't get any new -- as somebody alluded to before, platform investments and so on, we'll continue to bring down our debts. We also expect really to drive a very solid cash flow both in Q4 and also into 2026. So if we don't find any investments on, you will see our debts really going down.

No more questions. So thank you to everyone listening and asking questions. So good day to everyone. Thanks a lot.