Afternoon. Welcome to Scanfil's Press and Investor Conference about our SRX acquisition. My name is Pasi Hiedanpää. I'm the Director of Investor Relations and Communications at Scanfil. About practicalities, questions can be asked by the chat function, and all the questions will be answered at the end of the presentation in a Q&A section. Now, handing over to our CEO, Christophe Sut. Together with him is also here, actually, our CFO, Mr. Kai Valo. Handing over to you, Christophe, please. Thank you, Pasi. Thanks to all of you that called in for that press conference. Really appreciate that you take the time. We will try to give you a glimpse on the and an understanding on SRX Global that, as you know, we acquired yesterday. Before going there, I would just like to remind a little bit about what we have been working on during 2024. We updated our strategy, and as part of our strategy, we have been identifying actually acquisition as a way to go and to continue to develop the company. And two purposes to do acquisition, one is to complement our geographical footprint, and one is to acquire new customers that in a way dilute our dependencies to existing portfolio and also give us opportunity for growth for the future. And those are our criteria that we have obviously been looking at when scanning and that we look at when scanning and looking at the market. What we have obviously also worked on, just as a reminder, is also the efficiency component, which without we would not be able to make acquisitions. So that that's also an important element for us. But going back to our topic today, what we announced yesterday is the acquisition of a company called SRX Global. It has currently two sites, one in Melbourne, in Australia, and the second site in Malaysia, in Johor Bahru. It comes to complement very nicely our footprint, since it gives us two new locations in our Asia Pacific region, where we have already one factory in Suzhou, in China. And obviously, as a matter of consequence, and as you followed previously with our previous press release, we did an adjustment in our management team, normally by giving Christian Kjesten responsibility for the APAC region. And obviously, those two sites and this new company will fall under his responsibility as we now move forward. Going back to the two sites, we have the factory in Malaysia, in Johor Bahru, is a factory with 4,400 square meters as a footprint. It has four SMT lines. It is a very good location in terms of logistics, but also in terms of competence. And it gives us already a very solid footprint. We have an ambition to grow that factory, and as part of the deal, we have actually also secured an increase in capacity in square meters compared to what was the current situation of the factory. To be prepared to transfer and to welcome more customers in those facilities. Staff-wise, it's about 140 employees, which would give you an idea, a little bit of the size of the operation. The second operation, Melbourne in Australia, is a factory of 7,500 sq m that also have 4 SMT lines in the facilities and have approximately around 40 employees. It originally was a factory that was built for Fujitsu, for electronic manufacturing, and that has been taken over and occupied for several years now by SRX Global. It has a complex box build capabilities and, from that perspective, a very good match to Scanfil knowledge and competence. If we looked a little bit at both the deal and the overall story in brief, the company, SRX Global, it is the parent company that is registered in Australia. It was established in 1995. It had two owners, Paul Appleby and Joe Brown, that were respectively 50% and 50% owner in those operations. And Paul has been for many years now the CEO of the company. He will actually continue with Scanfil at least for the coming one and a half year, until the completion of 2025, and will ensure a smooth transition towards our company. So really, really appreciated. The turnover of the overall operation is in the range of EUR 39 million for the overall company, and an operating profit around 7%. It has mainly what we call industrial and MedT ech, energy clean tech customers. And a big part of the production is out of complex box build, which match very well our product mix. The acquisition, a few numbers around it, you saw them in the press release. It was a first payment of EUR 23.3 million as the first payment, and then after that, we have an earn-out mechanism based on performance in 2024 and 2025. That is actually rewarding increase in profit. So that's the way the deal has been constructed. In terms of the strategic fit, for us, as I was mentioning before, it's the right customer segment that SRX Global comes and bring to Scanfil in terms of, I would say, strategic fit. They have a significant amount of customers in the MedTech sectors, but also have both energy, clean tech and industrial customers. So, a customer base that match very well our portfolio. It gives us access to new facilities in Asia Pacific region. Both Australia, that is, it's a sizable market, very remote, but still sizable market, and Malaysia, that offers the capability to have in APAC region a facility with a lower cost manufacturing, still being well located in terms of logistics and all the elements you need to run smoothly an operation. It has also a very strong culture of manufacturing in that facility and very pleasant to see, I will say the link with our factories and the way we also operate. Finally, in terms of growth attributes, I mean, the factories we have acquired have the capability to do both electronic manufacturing and the box build and system integration, which is what we like to focus on within Scanfil. So from that perspective, a very, very good match. In terms of value creation for us, we will offer our customer an enhanced portfolio of factories. We will be able to continue to support them closer to where they like to be supported. We will also be able to create synergies on supply chain, obviously, as our size should be beneficial to SRX Global in their supply chain management. And then finally, it gives us the chance, both for Scanfil employee and SRX Global employees, to have opportunity to grow in their career and to develop by having a bigger ecosystem. So many positive element brought by that acquisition. As I was saying before, I mean, they have a product mix that is very, very comparable to what we do. We also appreciate they have an ISO 13485 in their facilities, which obviously gives us the opportunity to support our MedTech customers, that as we have highlighted in previous presentation, is definitely a segment we want to continue to grow into. So the fact that they both have customers in that field, but also the right certification, is a very positive element for us. In terms of customer portfolio, two things, I mean, the company has quite diversified portfolio. Top five customers weigh around 50% of the revenue, and then they get complemented by a longer list of customers. When it comes to the segment, what we can see is that MedTech and energy and clean tech represent each around 20% of the revenue of the company, and then the industrial customer, another 60%, slightly below 60%. So in many ways, a customer mix that is very suitable and very in line with what we like within Scanfil. To close on the few numbers that you have seen before, I mean, revenue is or was in 2024, knowing that they had an exercise that closed the end of June, in the range of EUR 39 million, with a profit of 7% and a total number of 300 employees. So, a good, I would say a good match in terms of size, but also in terms of profitability with what Scanfil wants to achieve. We also see a positive development for the coming eighteen months for the company, with a good perspective in terms of customer acquisition and a strong belief that those numbers will continue to grow, and the added value they have been producing will continue to develop in the right direction in the coming years. With those, I will take a pause and move to the Q&A. Okay. Thank you. Thank you, Christophe. Questions are popping in already. First one: The expected recovery in Europe has taken more time than expected and surprised many, especially the electronic manufacturing services business. How is the market doing in the Asia Pacific region? Are they in decline as well as we are in Europe? So overall comment on the market. Yeah, I mean, as I mentioned in my comment, I mean, we have a very positive perspective in SRX Global for the coming 24 months. So we believe that the company has a strong customer portfolio that will drive growth, actually. So from that perspective, I think that both the market is giving room for growth in that part of the world, and we believe that the company is well positioned and done good work to capture contract that will translate into a positive development. Okay, thank you. About the earn-out, potential share of earn-out is size or compared to the deal size. Can you open the rules with in what situation you would pay this earn-out in full sales profitability, etc.? If you can comment on that. Yeah, I can absolutely comment on that. I think the earn-out is based on the perspective of development of the company and is based on achieving profitability targets. So paying the earn-out will mean, and we all hope for it and believe in it, a very positive development of the profit that the company brings within Scanfil. Okay, thank you. Are all the five major customers long-term customers with the SRX, so about their customer retention? Yeah, I mean, I will say more than the five customers are long-term customers. I mean, when we look at, obviously, the operation in Malaysia are a bit younger. They are in the range of eight to 10 years old. But their customer have been long-term, but also it's the case in Australia, and that's where we see also a lot of similarities with what we do. I mean, it's complex manufacturing, and therefore, it's long-term relationship. Okay. Thank you. About the production costs, compared to China and Malaysia, how much production costs are lower in Malaysia than in China? Now, I think it's difficult to give a straight number there, but I will say that you get two things. I think that you get in Malaysia a slightly better manufacturing cost, but you also get the possibility to produce for maybe markets that don't really want to be manufactured in China. We can also see that, I mean, the Chinese market right now is focusing on Chinese market. I mean, we can see that the manufacturing in China is usually made for China. So I think more than cost, it's also the willingness to have a site in Asia that can serve the global customers. Okay. Thank you. Question regarding the valuation multiples. You've already paid more than Scanfil's own valuation multiples, so, what are expected financial synergies of this transaction? Yeah, I think there is two synergies that are very straightforward. The first one is supply chain related. I mean, we have a firing power as Scanfil that is obviously much bigger than what SRX Global had, so that's an easy one, too. I will say that's a straightforward one to oversee and capture. Then the second one is growth. I mean, we have, as I said, a customer that are asking us for facilities in Southeast Asia, and that are actually being begging us for that. I mean, I have got quite a few emails of people curious after the announcement from customers that wants an alternative for manufacturing in Southeast Asia, and that's what it brings. And that's what I mentioned a bit in my presentation. When doing that M&A, we also made sure that we were acquiring a platform, both in terms of competence, but also in terms of space, in Malaysia, that will support the growth. We have actually also secured extra space compared to current operation, to be able to capture that growth. All in all, it is quite straightforward, but a very good match. There is a third opportunity, which we believe that some of their sizable customer could be even more sizable, with the support of Scanfil and the Scanfil network. We believe it can also go the other way around. Some of their customer are really interesting for us to build a footprint with our other factories. Okay. Thank you. Regarding the numbers of SRX, margin and indebtedness, what was behind the improvement in the margin and indebtedness last fiscal year when we look at the figures of SRX as a standalone company? I think there is a couple of elements. I mean, in the previous year, you got two years, and the previous year, the 2023 year, it was material sales. You know, material sale is usually a very little margin, and it was quite sizable, so that explain. That's one of the explanation. And then I think the second explanation is also driven a little bit by product mix, but I will say the material sales was, in a way, a significant part of it. All right. Thank you. About the Western customers, do you have Western customers in Asia who want to move production out from China? Yeah. No, we have a very stable situation in Asia in the sense that, our Chinese, as I said, our Chinese operation, for a big percentage of it, manufacture for Chinese market, has been doing so for quite a long time, and that is, remaining. So I will say for the big chunk of it, we don't, foresee a leakage from our Chinese operation to that operation. Then it might be one or two product that move around, and that we have between all of our operation all the time. But we believe that, if that was the question, we believe that our customer in Suzhou are very happy of our Suzhou operation, and it serve very well the purpose of their development on the Chinese market. Thank you. Now, very specific question, obviously from an analyst. How much lease liabilities IFRS 16 the transaction adds to Scanfil's balance sheet? I'm not sure if Kai has the answer at hand. Otherwise, we might have to get back to the person that asked the question. Yeah, I can get it, get back as well if Kai's nodding, but okay, I will get the directly back on, back on that. The defense customers, are any defense customers within the industry sector? There is no sizable defense customer in that company. The main activities, as we said, is industrial. It's energy clean tech, and it's MedTech. MedTech is quite. It has a nice portfolio, so it's not a company that has a strong footprint in defense. Okay. Thank you. Maybe this was answered already to some extent about, do you see opportunity that the SRX's largest customers could become Scanfil customers also in Europe and in the US? And I think that it was already discussed. Yeah, I think that, as I said, we believe so. We believe that some of their customers can benefit from our footprint and also from some stability we obviously bring by our size. So absolutely. Okay. And please, if you have any further questions, we will wait still a bit for additional questions. Just a sec. Let's wait for a bit still. Okay, there is one question, actually. How will Scanfil's work with M&A now continue after the SRX acquisition? Well, I mean, it will continue as it started, meaning that we have identified the geographical area, we have identified customer segment, and we have built and building a pipeline to look at what are the opportunities. And as I'm sure you have noticed, I think that this deal still give us a lot of room for potential additional acquisition. So it’s just something that we will continue to do, monitor the market and look at what opportunities we have. I think we have, during the first part of the year, build competence to get where we are today in making M&A and being able to close these kind of things. So that's pleasing, and we have possibility to do more if and when something interesting comes. Okay, thank you. Now, we got actually wishes through the chat box, so good luck. Pleased to see M&A in these times of poor profit earnings in the sector. So these were coming from obviously one investor of ours. Additional one, would you have been in the full year 2024 sales guidance midpoint without this acquisition? I think that we have, I mean, this obviously, the conference is about SRX Global, and we will stick to that. When it comes to the guidance, I mean, we still have the guidance we have given, and we are still within the guidance we gave previously, and we review obviously constantly. We will do it again now that we have SRX Global to see, okay, based on the last numbers, I mean, you realize we are closing a quarter, so everyone is shuffling numbers around, including Scanfil and SRX Global, and then we'll see where we are, but as long as we are in the guidance, we will remain with the guidance we have given. Yes. Thank you. Any further questions? Let's wait a bit if something pops in. There's a bit of a delay. All right. Just a sec. Let's wait still a bit. If there are no further questions, so handing over to you, Christophe, if you want to close, close the meeting. Yeah. Yeah. I want to thank you all for joining. I also want to thank both the Scanfil team that has been involved in that process, that's been very interesting and a lot of learning for all of us. And obviously, thanks also the Paul and Joe, that have been also obviously involved in that process, selling their company to us, and looking forward to work with SRX employees. I think that it's a very exciting acquisition, matches in many ways, and probably what we were hoping for, so looking forward to it. Thank you very much, and we wish you a good end of the day and a good weekend. Thank you.