Hiab just announced the acquisition of refuse collection vehicle manufacturer Labrie Environmental Group, based in North America, for enterprise value of $1,035 million. The acquisition significantly strengthens Hiab's position in the essential industry of waste and recycling. Welcome to Joint Investor and Press Conference. My name is Aki Vesikallio. I'm from Investor Relations. Today's presentation will be held by Hiab's President and CEO, Scott Phillips. Our CFO, Mikko Puolakka, will join us for the Q and A session to be held after Scott's presentation. With that, over to you, Scott. Thank you, Aki. Good morning from my side. Really excited to have the opportunity to share with you this milestone announcement. First, I'd like to start out by saying a huge thank you to all of those within and outside of the business that helped make this happen and bring it all together. Secondly, I would like to extend a warm welcome to the 1,200 terrific colleagues that will newly join the Hiab family post-closing. A big warm welcome from my side. Diving into the rationale and to give you some highlights and details around the acquisition. First, really excited that we are able to expand our position in a core segment exposure waste and recycling by further being able to serve customers and essential industry needs by adding a significant new product vertical within Hiab, which is the Labrie Environmental Group, who's a leading provider of refuse collection vehicles in North America, serving both Canada and the U.S. Taking you through from left to right on the slide, a bit of highlights from the company itself. Currently, last 12 months sales are at $491 million, delivering a comparable EBITDA margin of 23% or $113 million, as well as $83 million of comparable operating profit at 17% margin. Labrie comes into the Hiab family with a significant and strong order backlog of $435 million, and as mentioned earlier, 100% of the sales are in North America. It also aligns quite nicely with our strategy objectives, not only to grow in a critical, essential industrial segment of waste and recycling, also helps significantly expand our position in North America. From a product portfolio overview, Labrie competes with four brands, all offering industry-leading solutions, and I'll go into a bit more detail in a few slides. We have Labrie side loaders that are the fastest-growing sub-sector within the overall market, Wittke front loaders, Leach rear loaders, and providing continual aftermarket and lifecycle services for its customers through LabriePlus. As I mentioned earlier, there is a nice fit and alignment for us in terms of not only the segment, but as well as the customer base that it served. Labrie competes on a differentiated level of business strategy, serving a set of premium customers that can be defined in three different sectors. The core of the business is serving municipal and independent regional customers, making up about 60% of the overall market exposure. There is an exposure with national accounts, as well as rental companies. The applications that are served can be bifurcated or are bifurcated between both residential and commercial applications. The company, we think one of the key and attractive capabilities that we have to bring to the equation is that there's currently a nice penetration in parts and services, but we think this is one of at least three or four areas with which Hiab's capability and scale can help enhance further the penetration of parts and service business. Moving forward into giving you a bit more insights into the deal logic and why we find this so attractive. First and foremost, I think, as I mentioned, it gives us a much greater expanded opportunity to serve a critical set of customers in an essential industry. At the same time, enabling us to have an even more stable demand curve cycle on a go-forward basis. This is underpinned by the fact that there are good overall structural characteristics that define the growth curves in the past 10 years, as well as those we see in the years to follow, on the basis of the fact that overall aggregated volume of waste and recycling is growing, and at the same time, on a per capita basis, that trend continues to grow as well. As a consequence, the refuse collection vehicle equipment market is expected to grow in the low to mid-single digit range, as well as supported by an overall case due to differentiation and the fact that the solutions, in particular on automated side loaders, should enable from an increased set of outcomes for safety and productivity, also allow us to compete on a basis to defend a premium price for the offering as well. As I mentioned previously, the fourth element that's critical here is that side loaders, where Labrie has an excellent position and number one in their sector is the fastest growing segment of the RCV market, approximately 200 basis points faster than the overall market. We think, on a full potential basis, there's room between 500 and 1,000 basis points of further penetration of this solution in the overall market. Currently the overall market picture is such that about 50%, or roughly 35%-40% of the market is side loaders. You have the balance of the market between front loader and rear loaders. As I mentioned earlier, on an aggregated basis, municipal solid waste generation in the U.S. in particular, has grown year-over-year, so nicely stable and anti-cyclical demand patterns, if you will. Diving a bit into more detail in terms of the tools with which Labrie has to compete with. From a brand perspective, I mentioned that they compete on a multi-brand strategy similar to Hiab. In looking through the Labrie brands, automated side loaders designed to enhance radically safety and efficiency. With the quality and the design capability that Labrie's team has brought to the equation, the level of durability and quality is second to none in the industry. The selected products are bifurcated between Automizer series as well as Minimax series, and as I mentioned earlier, commanding a number one position overall in the market in North America, and the most significant contribution to the overall top-line demand curve. Moving to the right, the Wittke brand is a front loader brand of solution, primarily targeted for urban industrial as well as commercial collection applications. Two different offerings here. One is on the Xpress, the other Starlight brand, currently holding a number three position. Moving to the far right-hand side, the Leach brand are rear loaders optimized for tight space locations, serving both residential and commercial applications with two different solutions. The two are Dash 3 as well as the Alpha 3, commanding a number 4 position in the market. As I mentioned previously, the services and lifecycle business come to market as part of the LabriePlus offering, supported by a dealer network of approximately 80 dealers, and offering a comprehensive set of services and parts support, as well as a proprietary set of hydraulic solutions, as well as loader arm components. A great technological fit, as well as a mission fit with the overall Hiab offering. In addition to the technological and the mission fit, we love how this enhances Hiab's overall footprint within the North American market. Just to give you a comprehensive overview on a page, if you will, how does this all fit together? Looking from left to right, and you'll know from the Capital Markets Day, I call this color peach, that if you think about what we currently bring to the equation, we have an at-scale sales and service network globally, and as well as in North America of 3,000 different locations, both our own as well as supported by a comprehensive dealer network. We participate in 100 different countries within our delivery footprint, and we do compete on a basis of asset-light supply chain model, which served us well, both in terms of upside flexibility with regard to capacity, but then also downside risk with regards to our cost curves. Approximately 60% of our sales in the past 12 months have been indirect sales, 40% direct. Combining that with the Labrie footprint, you see that in terms of Labrie, they have over 80 dealer locations, as I mentioned previously, all located allowing them to serve the aggregate of their customers within a four-hour drive, which is critical in this industry. Approximately all but 5% of the sales are through their indirect channels. If you look at what the team has accomplished amongst their many accomplishments in the last five years, you've got 11 new dealers that have been added since 2021. From a manufacturing footprint perspective, we're nicely positioned with two locations in Canada, one in the U.S., and one in Mexico. A very nice fit to the overall Hiab footprint. In addition, as I mentioned previously, the business level strategy is clearly differentiated, which fits within our portfolio perfectly. That's competing on a basis of differentiated safety, productivity, as well as quality outcomes. At the same time, this enhances our desire, not only both to grow and grow above industry, but at the same time, have more resilient growth into the future as well as higher quality level of earnings. Overall, Labrie is number three in the market in North America, number one in the sub-sector in automated side loaders. An opportunity for us to add significant value in a couple of different ways. I mentioned a few previously, but in addition to the services piece and the overall technology, the opportunity to help fast track and accelerate not only overall product development, but at the same time, to be able to enhance and fast track the digitalization of the fleet, which will be increasingly important now and into the future. We think that this is quite a nice fit. Similarly, or at the same time, with the combined footprint, we have an opportunity now to optimize our local manufacturing and sourcing footprint for both the combined organization, but also each of the individual product lines that are served within the North American market. We're excited with the potential of synergies on the sales side, combining our Galfab business together with the Labrie Environmental Group. At the same time, from a synergies perspective, we see clear opportunities for material procurement, and I mentioned previously, sales synergies. The fifth element here, the fifth attribute that we find a must in terms of our criteria and how we evaluate M&A or acquisition targets, if you will, is that it's an extremely high-quality business that is soon accretive to Hiab earnings, and in this case, should be immediately accretive to both Hiab growth as well as earnings. At the same time, due to that fact, the sixth attribute that we think makes us a perfect fit in terms of our strategic criteria in evaluating inorganic growth opportunities, that we will, over a short period of time, have our balance sheet back within our targets of less than a 50% gearing and should enable us to also stick to our commitments in terms of returning value to our shareholders. As Aki mentioned in his opening, the overall purchase price was $1.035 billion on a cash-free, debt-free basis. In terms of the last 12 months comparable EBITDA, it represents a multiple of 9.2. In line with our criteria in terms of how we evaluate opportunities such as this in consideration of the current trading multiple of our business. From a financial impact perspective, we see the opportunity to have an enhanced financial profile. As I mentioned previously as well, that we expect this to be soon accretive, both in terms of margin as well as our growth ambitions. As this is a high-quality business, at the same time, it has very similar characteristics in terms of cash conversion as we have in Hiab. Again, a really nice fit here. We do expect synergies both in the form of sales synergies as well as cost synergies. As we progress through the next 30 to 60 days or so, we will all share additional details around that particular topic. On a financing basis, it's 100% cash consideration, and it will be financed with cash at hand as well as additional debt to a maximum of EUR 900 million. Had the acquisition been completed at the end of Q1 2026, which is the latest financial period that we published, as you all know, the planned financing would have resulted in a pro forma gearing of approximately 70% compared to our target of 50% and a pro forma net debt to EBITDA of 2.1 times. Long-term target for gearing, as I mentioned, is still below 50%. We believe this supports that case quite nicely as we expect continued strong cash generation. In terms of timing, we anticipate the closing to be early Q3 of this year. Of course, this transaction is subject to regulatory approval and customary closing conditions. How will our portfolio look in aggregate post-closing? Going from left to right, you all are familiar with our loader crane offering in the form of six different brands, Hiab, ARGOS, EFFER, ING, JONSERED, and LOGLIFT. We have, of course, our truck mounted forklifts, MOFFETT, and in addition to MOFFETT, we have Princeton. Then in terms of our leading hooklift and skip loader solutions, we compete under two brands, MULTILIFT and Galfab. Tail lifts are, generally speaking, have been a regional offering, competing across three brands, ZEPRO primarily serving Europe, WALTCO serving the U.S. market, and DEL serving the U.K. market. We have our services brand, and we have a brand of solutions under our HiPerform umbrella. Of course, we now get the privilege of adding not only the great brands within Labrie Environmental Group, but as I mentioned before, a fantastic team that we inherit. Pleased to say that the majority, if not all of the key management team members, we expect to continue to stay with the business, which we're super excited about. Now, how do the combined businesses look on an overall basis, just in terms of the financial profile as well as the market segment exposure profile? I won't take you through all the details on the slide as it's quite comprehensive. Looking at a last 12 months basis on a top-line perspective, Hiab is last 12 months at little over EUR 1.5 billion. On an EBITDA basis, EUR 241 million or 16% margin. On an EBIT basis, a little under EUR 200 million at 13%. We have a varied sector and segment exposure, which we quite like, primarily serving essential industries as well as defense logistics. From a geographical perspective, we serve all three regions in terms of APAC, EMEA, as well as the Americas. Drawing your attention to the middle slide on a euro basis, I gave you U.S. dollars previously. On a Euro basis, you see that Labrie Environmental Group has EUR 438 million of top line, EUR 101 million, a 23% margin on EBITDA basis, EUR 74 million on an EBIT basis at 17%, and with a concentrated focused exposure in waste and recycling, and then similarly, a focused exposure in North America. Drawing your attention to the third column, the combined pro forma financials on a last 12 months basis, a little under EUR 2 billion combined business, 6% CAGR over the last 10 years in terms of growth, EUR 342 million margin, 17% on a relative basis and 14% on an EBIT level. Nicely positioning the business to increase in line with our strategy, our exposure in waste and recycling as a core essential industry. Slightly change in terms of the geographical mix where APAC would reduce slightly, EMEA, of course, reduce slightly, and then North America increase, in line with our strategy. We love the four attributes that this brings to the overall equation for Hiab to be able to deliver an optimized value for all of its stakeholders. One, it increases our scale and as well as our growth profile. Two, its margin-accretive solid cash generation characteristics gives us more diversification in end markets, critically reducing our cyclicality, adds to our technology and our mission fit perfectly, and absolutely strengthens our position in North America. Getting close to wrapping up here. The six attributes that I took you through before, just to give you a different visualization, if you will, in terms of what this does as far as delivering on our inorganic growth that I know has been a lot of topic of conversation here, especially in the past one and a half years. Certainly fits our overall strategic imperative to make choices that enable us to enhance our ability to be one or two, so that we can be differentiated within the sub-sector and the overall segment, and Labrie fits that equation perfectly. Number two, it allows us to continue to create growth through innovation as this segment is absolutely critically impacted by technology and innovation and capabilities that will significantly drive differentiated outcomes for the industry as well as its end users. We see that as a perfect fit as well. Three, it allows us to be geared to expand in our leading position in North American market, which is absolutely critical given the scale and size and scope of that overall market, as well as the fact that just two years ago, when we introduced our strategy via our Capital Markets Day, in May of 2024, as we shared with you, we were geographically underexposed in this critical geography, and this helps absolutely solve for our scale and coverage within the market quite nicely. Four, it further enhances our ability to leverage a sizable installed base by digitalizing our offering with our connected solutions and with our digital services capability. We think this will set Labrie Environmental Group offering geared to grow nicely into the future and allow them to accelerate the nice growth path that they've already been on. In terms of value creation, we feel strongly convicted around the fact that our operating model that we bring to the equation here and our decentralized operating model, allowing for focused end-to-end businesses with full transparency and accountability, are going to further enhance our ability to maximize the value creation potential, not only for Hiab, but our newest platform. We still aim to focus on profitable growth, and this will further enhance our ability to create incremental value creation for the Labrie group. As wrapping up, last and not least here on this page, we have a combined best-in-class financial profiles that create a nice fit in all of the characteristics that we look for in terms of ideal inorganic opportunities to catalyze growth. We see this ticking all of those key criteria nicely. Concluding here quickly before I welcome my colleagues on the stage with myself. Together with Labrie Environmental Group, this is a clear opportunity for us to accelerate our combined profitable growth strategies by providing the highest quality, most differentiated offering to the set of customers that we proudly serve within the critical waste and recycling and essential industry that makes up the foundation of what it is we do at Hiab, as well as the foundation of what we do at Labrie. We're excited to add this new product vertical refuse collection vehicles to our overall portfolio, enhancing our ability to do that. As I mentioned before, I anticipate the transaction to close early Q3 of this year, subject to regulatory approval and customary closing conditions. With that, I'll conclude and turn it over to Q and A. Welcome Mikko and Aki to the stage. Thank you, Scott. We have received a couple of questions from the chat function, we can start with these questions before entering into the telephone conference. The first question is about if we are worried about buying from a private equity owner at all-time high margins. Do you think that is this a too expensive deal for Hiab, considering that private equity could have had tendency to dress up the figures? Yeah. Well, we obviously like the valuation of what we were able to bring this over the line with. We think that it was certainly, after an extensive amount of due diligence, a fair representation. This is an asset along with others within the same segment and sector and geography that we've been looking at for half a decade. We feel like we have a pretty good view as to where the fair valuation of this asset is. As I've talked about with a lot of the audience previously, we always consider these deals in the context of how Hiab is trading overall. We feel from that standpoint good about the valuation piece. Most importantly, we see a significant upside opportunity for incremental value creation, agnostic of industry tailwinds, if you will, within this particular platform, given what we bring to the equation and what they already have to bring to the equation. We do see this as a perfect fit in terms of incremental value creation. We feel quite okay about where this deal ended up transacting at. Thanks. The next question comes from France, I assume, from Bastiaan. He is saying, "Good morning." He asks, "How comparable are Hiab and Labrie in terms of equipment versus aftermarket mix? What are the specifics for the Labrie aftermarket revenue? Is there any potential to improve that mix? Yeah. Yeah, we've got a pretty good view on that. We know where the best-in-class benchmarks are within the North American market. We know that there are significant upside potential with further services penetration. We think that on a like-for-like basis from our recurring revenue, a quite similar mix to the overall revenue profile. We know within the industry that there is a competitive benchmark that also brings to the overall market a digital enhanced service offering. That offers further upside potential. Therefore, there's a realistic opportunity if you look forward in the next 5-10 years or so, that we would have a similar type of mix of services to overall revenue profile somewhere in the range of our recurring revenue, and to our overall services percent of sales. Okay. Thank you. The next question, I assume this is for Mikko. This is coming from Markku Moilanen from Nordea. You have a EUR 150 million bond maturing in September, what is the plan regarding it? Has this announced transaction changed your plans in any way? Secondly, is there any seasonality in the Labrie business? Maybe more for Scott. Thirdly, you highlighted Labrie's strong cash flow generation in the presentation, but can you discuss what the cash conversion rates look like as a standalone basis and compared to Hiab? Maybe if we start from the bond. Yes, we have a EUR 150 million bond maturing in September. The plan is to repay that bond. We are planning to finance the Labrie acquisition by raising EUR 900 million of debt. Most of that approximately five years term loans, solid financing with competitive pricing. Scott, how about the seasonality of the business and the cash conversion profile? Yeah. I'll start with the latter first. Yeah. Of course, as I mentioned during the presentation, the cash conversion profile historically has been well in line with the Hiab historical cash conversion. Having said that, much like we saw for our business as well in 2022 and 2023 with the backlog situation, they've been a little bit off of their cash conversion profile over the past couple of years. We know exactly what needs to be done, and Michael and the team have a great plan in place in order to solve for that. On a long-term basis, we see no issue there. The second part was relative to the— Seasonality Question around seasonality, and we see not so much seasonality characteristics in the Labrie revenue profile. You also have to appreciate at this point, we'll learn more in the period to come. At the same time, with the backlog and the nature of their ability to mass customize solutions and the customer's willingness to wait because of the quality and technical differentiation, that's probably smoothed out a little bit of what could be some inherent slight seasonality effects in terms of the top line. More detail to follow on that in future periods. Okay. We have the next question. When was the first time we took a look at this asset, if you can give any insights? Of course, it's really well-aligned with our. Yeah Strategy that we published in 2024. Yeah. It was more than five years ago. Yeah. Probably, some of my team members now, they're virtually kicking me under the table, but likely they've looked at this asset long before that. I can say myself, it's been on my radar intensively for more than five years. We have a slide that is showing that Labrie has had a CAGR of 14% the last 10 years, but the market has not been growing as fast. What explains that? Sure. It's due to a combination of factors. You have the overall structural characteristics on the increase in aggregate waste and recycling, the emergence of now more recycling, which is in the sweet spot of Labrie's offering and technology. At the same time, you also have this increasing uptake of automated side loaders as an alternative solution to the front and rear loaders. The combination of those three factors, as well as the fantastic support of the Labrie team, as well as the personnel within the at scale dealer group, it's those four factors is really the key ingredients that has enabled them to grow this fast. Finally, looking at Labrie, they seem to be much more capital intensive considering they are a manufacturer of these vehicles. Also, the depreciation and amortization as percentage of sales is more than 6%, while Hiab has less than 4% of sales. Do you intend to get more in the capital intensive segment because Hiab is by nature quite asset light? Yeah. This actually fits quite perfectly into how we've thought about our supply chain strategy. If it makes sense for us to have some manufacturing because of the level of criticality and complexity of components, both in terms of how that equipment performs relative to its normal duty cycles, but also in terms of securing the aftermarket lifecycle services, such that we can secure and guaranteed near perfect delivery within the time constraints required to keep our customers up and running, then we've always had that view. Certainly, one of the key work streams within the overall integration plan will be to take a deep dive look into the overall supply chain setup, but in consideration of the whole combined footprint, and then make choices that are in line with our strategy. We still like the way that we're positioned, and it really isn't a matter so much as we seek to have a asset light and a more flexible cost structure for ourselves. It's also even more about leveraging the real expertise and capability of companies whose mission is a little bit more focused on those type of mission-critical components compared to us. We'll take the same strategic look and apply the same choice criteria, and then on a go-forward basis, we'll execute on the supply chain strategy in ways that make sense in line with our strategy. Okay, great. Let's now take the question from the telephone line. You have still possibility to pose questions to the chat. We will take them after the telephone. If you wish to asked a question please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question please dial pound key six on your telephone keypad. The next question comes from Antti Kansanen from SEB. Please go ahead. Yeah. Hi, guys. Congrats on the deal. A couple of questions from my side. I'll take them one by one. The first one is maybe a follow-up on the revenue trends. Scott, I guess you mentioned that you expect the deal to be accretive for Hiab's growth as well as margins after the transaction. Maybe a little bit of color on how does the $ 491 million in terms of sales look in historical perspective compared to the past couple of years? How's the business momentum in this business compared to your own? Maybe then on a more structural basis, maybe you can talk a little bit about the competitive landscape, especially on the U.S. market, regarding market shares, regarding potential to maybe regionally grow the business, take market share on the equipment side, aside from the fact that you can bring on the aftermarket. Yeah, sure. Starting with your first one, relative to the characteristics of the last 12 months, $491 million, I almost said Euro, but U.S. dollars revenue profile. Coming back to earlier comments I made, Antti, for the most part, you have, of course, the overall industry demand. On the other hand, you have this sub-sector trend where automated side loaders have been growing faster than the overall market, which is right in the sweet spot of this particular business. What has really underpinned Labrie's performance in this critical market is that combination of designed-in quality, manufactured-in quality, in particular of the hydraulic and the lift arm performance, the ability to get up and running and performing faster as compared to the competition in that regard, and the recognition then that the subsequent durability and performance is clearly differentiated. As I kind of snuck in as a bit of a throwaway comment earlier, and I'll highlight it a bit more now, the ability to have a rapid configuration within their own design and manufacturing platform that integrate together quite seamlessly. They've been much more successful in being able to, at scale, design more customized solutions for purpose fit for the application with which customers have been then willing to wait for on a longer lead time basis. That's been a key factor. On the other hand, I would say that the management, rightfully so in my view, had taken the view that they wanted to be conservative in terms of the capacity ramp-up, that growth curve has dictated in the prior five-year period, and that has helped smooth out the overall backlog of the business, and it has allowed them to better perform in terms of supply chain, in terms of the trade-offs of going after top line, but then at the same time, being able to control cost. I think that absolutely has been a key factor in terms of when you think about the sequential development of their revenue profile. That also had a contributing factor as well. You asked about the competitive landscape. It's still a fairly concentrated market in North America. You have the top two players are, in our context, business areas within large at-scale listed companies. You have McNeilus and Hial, if you will, from Oshkosh and Terex, respectively. Then in addition, you have New Way, which as of, I believe September of last year, was announced, recently acquired by Federal Signal, also a listed company within the U.S. with a similar revenue profile as the Labrie Environmental Group in terms of a bit more focus and concentration or, let's say, scale of their revenue profile on automated side loaders versus front loaders and rear loaders. I would say competing on a slightly different competitive basis with excellent lead times, nice at-scale manufacturing that's fully concentrated in the U.S., and able to compete on extremely competitive pricing. In regards of Labrie's ability to outgrow the market going forward and take market share, it's more about kind of the penetration rates on the side loaders continue to grow further than any substantial potential on, let's say, geographical expansion within North America or things like that? Yeah. Just to add a bit of additional color here. I'm going to probably get myself in trouble a bit, there are three other key characteristics there. One I alluded to during the pitch was the rate of services penetration. They recognize that's a big opportunity for them, and one of the reasons that I think they're excited to be part of the Hiab portfolio. Two, there are some key product introductions, current and in the future, that will allow or enhance this platform's ability to grow in the automated side loader subsector. Of course, three, as one of the many areas that has me excited, is the fact that they're lagging in the front and rear loaders with a massive opportunity to further or to establish a position within national key accounts because you have quite also a concentrated end market profile for that offering. There's real opportunity to grow in that space as well. All of which can be underpinned by having the full complement of supply chain capability and sourcing capability in North America that allows for flexibility given the today's and in the future demand and trading environment. Okay. The next question is on the production setup and how is this company exposed to the U.S. tariff regime currently? Which products does it serve from the U.S. setup and which come from Mexico and Canada, and are they exempt, especially on the Section 232 side? Yes. Overall, taking you through the supply chain setup, you have a at-scale factory in Canada producing the full build solutions, located in Québec City. That is supported by a smaller manufacturing facility that's manufacturing the critical components I was showing on one of the pages in the presentation around the hydraulic and the lift arm components. In the U.S., you have a factory located in Georgia that is primarily focused on automated side loaders, and that also is the primary bulk of the solutions that are produced in Canada as well. You have a facility in Mexico that's primarily focused on front and rear loaders in an excellent facility in the maquiladora across the border. The tariff exposure is present for both the solutions that come from Canada as well as from Mexico. As you all know, the team has done an excellent job in mitigating the tariff exposure. However, they are exposed, and it is captured within the financial pro formas that we shared previously, and they have an excellent view as to the exposure moving forward. We do have the opportunity to continue to carry on with the three different mitigating strategies that they've employed, and we would expect then over time for us to continue to further mitigate any tariff exposures. That'll take just a bit of time as we continue to scale the operation and lift and shift where need be. All right. The very last from me is obviously already looking at the next thing. How is your capital allocation priorities now for the, let's say, short-term next six to 12 months, balancing any further M&A opportunities versus dividends versus your gearing target? Yeah. We've got the flexibility in our dividend target profile that we should be well in line in terms of adhering to our 30%-50% dividend policy. From a capital allocation perspective, due to the strength of the balance sheet that we come into this transaction with and how we see that balance sheet developing over the next couple of years, we still believe that from an allocation prioritization, that we can stick with the same tune that we've been singing and sharing with all of you in the past. We still have opportunities, and one of the many reasons I'm excited about this platform that this gives us an opportunity for further bolt-ons for this new product vertical, and we see a number of opportunities to do so, and we have the balance sheet strength in order to go execute, provided we can meet all of our criteria and characteristics. At the same time, we certainly aim and seek to then, in terms of the balance of our available balance sheet, to continue to return predictable and an attractive dividend profile to our shareholders. All right. Thank you very much. Yeah. Thanks a lot. The next question comes from Mikael Doepel from Nordea. Please go ahead. Thank you very much. Congratulations on the deal. A couple of questions here as well. Firstly, coming back to the competitive landscape and the market structure. I think you mentioned, Scott, that the number one and number two players are roughly the same size as the company you are acquiring, Labrie. What are their market shares? Trying to understand the level of consolidation in the market, and also coming back to your comment you just made in terms of doing potential bolt-ons on this new platform as well. Just trying to get a better feel for the level of concentration in the market. Let's start there. If you think about the headline number, so the revenue piece, I would say Labrie Environmental Group overall is a bit of a distant number three. If I think about the revenue profile of both Heil and McNeilus are, I would say, significantly higher compared to Labrie, which is a positive. As a consequence, that would be number three in terms of overall market share, and number four would be the New Way platform that's part of Federal Signal. In terms of the automated side loaders, we have a leading market share position that's roughly between a third and about 35% of the overall market, and we see opportunities to further expand that position. If you do the math in terms of the overall growth potential within that subsector, we see an opportunity to, both in the short as well as the medium term, to perform quite nicely in terms of expanding not only market share and automated side loaders, but then offering a nice alternative in the two subsectors with which we are, or Labrie is performing significantly behind the top two players within the overall sector. Okay. Just on kind of that same topic, if you look at the profitability, I mean, looking at where Labrie is currently, would you say there is a significant difference compared to the main competitors or broadly in line? Do you have any insights into that? Yeah. I'd say broadly in line compared to the top two and a bit better compared to number four. Okay. Just continuing on that topic, we talked about the historical revenue growth of Labrie right here, which was quite strong. Just wanted to check if there is any kind of acquisition-driven growth also representing that number. Even more importantly, actually, on the margin trajectory, if you could talk a bit about how these margins have developed within Labrie in the past call it five years or so? Yeah. No, excellent question. I would have to give credit to the current ownership group together with the management team. If you think from the owner's perspective, looking back a little over five years ago, roughly, they've recognized quite right away that there was a need to invest in supply chain capability, both in terms of de-risking the overall cost curves by scaling up in both the U.S. as well as Mexico. From my perspective, they did that quite nicely. Number two, they were successful in bringing in and complementing the incredible technical capabilities and personnel that they had from the core business, and layered over the top of that, world-class type leadership talent that has then enabled the business to go through a nice transformation over the past five years. That's translated into the nice top-line growth that was the core of this question. Also then the variable B is it also translated into a better incremental profit pull-through operating leverage compared to the platform in the five-year period prior. Number three, they made a nice investment, not only in terms of the IT piece, in terms of creating a unified ERP platform that integrated nicely with the design platform, but then also have continued to invest in new product and technology. Those factors combined have enabled this business to accelerate its trajectory, both in terms of driving top line, but more importantly, the quality of the top line. Okay. That's very clear. Thanks a lot. Scott. I'll go back in queue. The next question comes from Panu Laitinmäki from Danske Bank. Please go ahead. Hi. Thank you. I have three questions. Firstly, starting on the current trading and kind of short-term outlook of the acquired company, can you comment on how the order intake and order book has developed if you look at kind of sequential development for the past quarters? The growth in the past 12 months was pretty substantial, so was there anything kind of unusual in that number? Nothing unusual in that number that I can report. Yeah. I'm looking for some support to my side here, Panu. Nothing unusual. The overall market had certainly been softer in 2024 and 2025, or 2024 somewhat, but certainly 2025. Coming into this year, I'd say it mirrors very much what you've seen from Hiab overall. Having said that, where this platform had been so nicely positioned is the nature of its backlog and the type of solutions that it provides to its customers, whereby they've been able to smooth out the delivery of the backlog, which is, even though it looks quite a positive slope in the last couple of years, it could even have been more substantially positive, but they've been able to, I think, intelligently work through the backlog. Yes, from an order intake perspective, you see a bit of softening over the last 12-24 months, and it hasn't quite translated into the top line for this platform in particular. Okay. Thank you. Secondly, on the synergies, maybe both on sales and cost side, how does the overlap with your existing waste and recycling business look like? Are you selling to the same customers and where do you think the sales synergies should come from? On the cost side, will you quantify this going forward or will it remain as just like an ambition to it in procurement? Yeah. We will absolutely provide additional insight on a go-forward basis. The broad headlines we're at this point, not trying to be overly aggressive in terms of what we expect in the next three to five years in terms of pro forma EBIT synergies. We see that there's clear and attractive opportunities on the materials and manufacturing and sourcing piece that should represent anywhere between 50% and let's say 60%-65% of the synergies. In the near term, we see clear sales synergies opportunities from two vectors. One, there are channel as well as customer overlap with our existing business in the U.S. with Galfab. Similarly, we have some overlapping customers with regards to our lifting solutions as well, albeit today a bit subscale, but nevertheless, there. The second vector of sales synergies, as I've alluded to, is certainly on the service side as well, and will enable this platform to have even more proximity and more density in terms of coverage for its existing customer base. We've got at scale level of existing capabilities to deploy at this, located both here in Europe as well as in North America, as the customer profile is quite similar to many of the customers that we have here in Europe. We understand how to participate in these customer end markets very well. If we calculate the sales and procurement synergies together, so our initial assessment is that those should be on EBITDA level, a low double-digit US dollar amount per year. Yeah. Of course, that synergy assumption then gets more granular as we proceed with the integration planning. Yeah. Thank you. My final question is that can you comment on the deal valuation? It looks quite reasonable, which is obviously good, but it also kind of raises the question that how did you manage to acquire the company at this price, given the really good financial profile and kind of earlier indications that the value associate U.S. might be a bit on the high side? All right. Yeah, I'll answer that question. Yeah. I'll give you the same answer as to the online question. We arrived at a valuation that we felt was well-representative with the quality of this asset. Well in line with what we could, from a balance sheet perspective, manage, and at the same time still have a line of sight to, in a relatively short period of time, get our gearing ratio and the level of debt that we have on the balance sheet worked down fairly quickly. I think, like always in these scenarios, timing is always a factor. I think that given the timing that we find ourselves in and the way in which we were able to work together with the current owner, I think allowed both sides to come out with a deal that they were quite happy with. One that we could accommodate relative to the valuation, and one that the current owner was quite happy with in terms of their return profile to their LPs or their shareholders. All right. Thank you. The next question comes from Tom Skogman from DNB Carnegie. Please go ahead. Yes, hello, this is Tom Skogman from DNB Carnegie. Congratulations on the deal. I have a couple of questions. First, with this growth, 14% sales CAGR over the last 10 years is very fast, I didn't really understand what acquisitions have they made, in kind of what is the organic growth number? Do you have the exact number, or could you elaborate on that, please, so we get some kind of a picture? Yeah. In this past five to 10 years, it's all organic growth, Tom. Otherwise, I would've included that as part of a previous question in my answer. Sorry I didn't clarify that there weren't any acquisitions. I would say that also during the past years, some of the growth is driven also by this kind of post-COVID order book and backlogs supply chain constraints, which are now kind of getting resolved as well. How much is the order book up or down at the end of March? Overall, the order book, I would say, has been fairly stable and at the moment corresponds roughly a one years of sales if we look the last 12 months. Yeah Revenue profile. Yeah. Stable order book. Yeah. That means that book to bill has been around one. It's basically that's the situation. Broadly speaking, yes. I think that's broadly speaking. Yes The last 12 months, yes. Yes. This raises your margin in one strike by one percentage point based on the numbers you show. You have your financials target, should this trigger a change to the financial target to raise the margin target from 16%-17%? Well, we'll certainly come back and address that topic as we do each quarter, Tom. If you hold on to that, then as we get more visibility to the next two years, and as we work our way through the integration process, as Mikko had alluded to, then we'll certainly address that topic in due course. Perhaps it's good to note also that those consolidated numbers, what we showed on the slides, they don't yet include the Purchase Price Allocation amortization, which of course will be then granularized as we have completed the acquisition and have then the full calculations for the PPA available. Actually, my next question, how should we model the depreciations and the PPAs when you move to IFRS bookkeeping here? Will there be any change to depreciation and how large have they been? The depreciation, I would say in the big picture, the depreciation percentage should not dramatically change. Of course, the PPA allocation, like I said, we have some initial estimates about the PPA and anticipate that it could be potentially around EUR 30 million-EUR 40 million in the first couple of years due to the fact that Labrie has a sizable order book, and that will be amortized as a part of the PPA amortization in two years' time. After that, the PPA amortization would go down quite significantly. How about the goodwill amortization that they report currently? Yeah. According to the U.S. GAAP, the goodwill can be amortized. When Labrie would be part of Hiab, that would be part of the overall Hiab goodwill based on the Labrie acquisition, and then it is not amortized. How large will the depreciation, you said just the same percentage, but what in Euro million? Just if you want to do a model. Are you talking now about amortization or depreciation? Both, of course, but starting with the depreciation, as you said, just percentage will it remain the same? Yeah. I would say that in the big picture, the depreciation percentage should not dramatically change from the top line. The amortization, of course, from this acquisition is sizable compared to our past amortization, which has been more or less single digit on annual basis. Okay. You mean the same percentage of sales as Hiab currently with depreciation, basically? That's how we define it. Roughly on that level. Yeah. I didn't fully understand these PPAs I understand, but the other amortizations. How was it with that? Sorry, can you repeat? The amortizations that are not PPAs, you said you will not book that or move into IFRS. Yeah. Same level. Labrie has had goodwill, which is amortized according to the U.S. GAAP. That will disappear, and that will become a part of the overall acquisition goodwill. According to IFRS, that will not be amortized. Yeah. You can find the details. Okay, good. In the stock exchange release. That's why the gap between EBITDA and EBIT is quite big. Yeah. That has been, if I remember correctly, roughly EUR 20 million. Exactly Euros per annum. The interest rate, it's 4%-5%, I guess? If we look. Is that right? If we look this overall EUR 900 million financing, the average interest would be approximately 3.6% based on the current Euribor levels. Do you have any plans to expand into these segments in Europe as well? If this is a new opening, and the other products you have tried to have products available both in Europe and in America. Yeah. Just to come back to the re-grounding the strategy, so four focus segments, waste and recycling amongst those. Broadly speaking, yes is the answer to that question, both in Europe as well as other parts of the world. Could you just help us to understand a bit, when you bought the Galfab company, I mean, that was about transferring technologies from Europe to the U.S. How advanced would you say that American products are in this industry compared to European products? Yeah. Certainly lagging behind in some areas, but the uptake we're certainly seeing in our Galfab business, that's moving along very nicely. Similarly, we're seeing a bit more penetration of, especially if you think about the MULTILIFT product, we're starting to see a bigger conversion of containers to the hooklift solution, which is enabling a, albeit step-by-step, slow uptake, but a bigger uptake of that solution as well. The foundation is laid, if you will, to have a more rapid uptake of a similar type of technology given the application. Even though you don't have this product, you still have this feeling that American products can be developed more to catch up against European products in this industry. Is that the way to think? In this particular industry, I'd say that because I took your question to mean, if you think about the Galfab business, there were certain control systems, digitalization, as well as duty cycle automation characteristics or capabilities we had to share and scale within the Galfab offering. That's gone very well and according to plan, and we see the benefits of that. Similarly, we've seen the benefits to our operating model and business excellence in terms of turning around significantly the Galfab platform as well as our commercial excellence. That's gone along nicely. As I was trying to get to where I thought your question was, you see a bit more convergence of the demand for this similar type of higher technology in the U.S., in the duty cycle and the applications on a like-for-like basis than if I think about when I started this role. I do see that trend continuing in the future, albeit with purpose-built and fit-for-purpose type solutions that may not necessarily be the same as here. I'd say on an RCV basis, and thinking about the automated side loaders, I'd say that's likely to be on a different level, at a higher level of differentiation technology than what I at least personally have seen here in Europe. Whereas here we tend to use a bit more knuckle boom crane applications and in-ground bin storage, if you will, whereas that trend is not quite in the U.S., and I'm not sure that it will be. Okay. Thank you. As a reminder if you wish to asked a question please dial pound key five on your telephone keypad. The next question comes from Antti Kansanen from SEB. Please go ahead. Hi, guys. Thanks for follow-up. It was mainly the same thing that Tom already asked about the Adjusted EBIT kind of a comparability with all of the amortization. Do I now understand correctly that the way that we should model is that add the EUR 22 million of goodwill amortization to the announced pro forma Adjusted EBIT, so you get EUR 96 million and then take EUR 30 million-EUR 40 million in PPA out of it, so you'll get around EUR 60 million as a comparable Adjusted EBIT number that would be comparable to your reporting? Roughly speaking, yes. Yeah. Yes. How you'll kind of amortize the backlog in a couple of years' time and afterwards, the PPAs would be perhaps half of the EUR 30 million-EUR 40 million or something else? Correct. Okay. Very clear. Thank you. There are no more questions at this time, so I hand the conference back to the speakers. Thank you for the interest and for the great questions, and thank you for the great answers and presentation, Scott and Mikko. Thank you, everyone. Thank you. Yep. Have a safe day.