Welcome to Scanfil's Investor and Media Conference. My name is Pasi Hiedanpää. I am the Investor Relations and Communication Director at Scanfil. Yesterday, we announced the acquisition of ADCO Circuits. Our CEO, Christoph Sut, will present the acquisition in brief. We have Q&A at the end of the presentation, and all the questions will be addressed there. Now, handing over to Christoph. Please, Christoph. Thank you, Pasi. And thanks to all of you for joining with such a short notice. We really appreciate the effort you make listening to us and trying to understand what happened last night. If we move to the next slide, Pasi, just to remind everyone, I mean, we announced a bit more than a year ago that, as part of our strategy and in order to fuel growth, we will return to an M&A agenda. We did during the full last year, acquiring SRX Global that gave us a footprint, an expanded footprint in Asia. As you know, we are working as we speak to increase our capability in Malaysia to grow that business. In the same time, we had also announced and been clear on the fact that we were looking for an expansion in America, where we have our smallest region today. That is what we will actually cover today since the acquisition we made yesterday is actually in the U.S. If we move to the next slide, Pasi, here you can see the footprint of Scanfil today, where we have three factories that are located in Asia, four in Northern Europe, and three in Central Europe. Once the acquisition of ADCO will have been closed, we will have in North America two operations, one in Atlanta and a second operation in the north of the U.S., close to Detroit. If we go to the next slide and look at the company in brief, I mean, ADCO is a company that was established in 1981. She has been grown and developed and been owned by the Damon family. Mark Damon, one of the brothers, has been and is currently CEO of ADCO. He will actually continue as part of Scanfil and keep a minority shareholding of 20% in the company for the time being. The company is a company in the range of EUR 30 million revenue with an EBITDA margin of 11.4%. It has a strong customer portfolio in aerospace and defense, serving American manufacturers that either sell in the U.S. or also export and outside the U.S. They have a focus on electronics and a strong knowledge on electronic manufacturing, a three-assembly line located on their site in Detroit, and a strong team that is extremely experienced when it comes to electronic manufacturing, to mastering standards in the medtech sectors, in the defense sectors, and as well as automotive, which shows the quality of their quality system. They focus on electronic manufacturing and have a complementary business on box build for industrial customers. When it comes to the acquisition in brief, the enterprise value was established at EUR 21.7 million. We will have a purchase price based on 80% of the share, which is estimated to be EUR 13.6 million and to be paid in cash. The closing of the deal is subject to some regulatory approval, and we expect that to be granted during the third quarter and from there have start of having ADCO as part of Scanfil. As you will have noticed, actually, this acquisition is something that was absolutely in the range of what Scanfil can do and will actually keep our net debt ratio far below our target of 1.5 that we communicated last year, which means that we will still have firing power after that acquisition has been completed. Going maybe a bit more to the next slide, Pasi, to some more details. All operation and stuff are today based in Rochester Hills. It is 45 minutes more or less north of Detroit in Michigan. They have a facility of 5,000 sq m where we have currently under 20 employees, three SMT lines that are running in that operation. Actually, that factory is running in one shift at this time, which means that it has room for growth even within the current space and with the current equipment. As I mentioned before, it is a very strong competence in that factory. I mean, the people running those operations have long-term experience in the EMS and electronic manufacturing industry and therefore have developed very, very, very strong capabilities in that operation. Moving to the next slide. If we look at a summary of that acquisition from a customer perspective, it increased actually our penetration on what we call our aerospace and defense since 37% of the revenue of the company is in that field. It will actually double our revenue in that area once the acquisition is completed. It has also growth opportunity in energy clean tech, medtech, and life science. We have even a few customers that are joint customers. I will say on those customer segments, I mean, the couple of customers we have spoken since we signed the acquisition have been very positive to the news and very supportive to the news, which is very, very positive for the future. In terms of geographical expansion, as we had mentioned before, I mean, we have a willingness to grow in the U.S., and obviously, it will more or less double our size in North America. Still a lot of room to grow in North America, but it is a big step. I believe that having that facilities in the north part of the country and another one in the south part is giving us a lot of strength with our existing customer as well because it gives us the chance to have redundancy. It also gives us the opportunity to have an expanded offering since ADCO has a proto PCB service manufacturing and good NPI capabilities, which will also support our Atlanta site that is developing in the field of electronic manufacturing. When it comes to the value creation piece, we get increased presence in North America and very strong PCB experience. That is also positive for our customers that are currently looking at relocalization, and that is a positive element. As we said, they have a very good quality of operation and a certain number of certificates that are both in the field of medtech, automotive, and defense that we will be able to leverage on. Finally, but not least, we get the opportunity with new employees, new colleagues, competence, and the chance to grow the business more. One thing I didn't mention, which is still important, is, of course, joining Scanfil, they will benefit of the bargaining power of Scanfil in terms of purchasing of components, which we can see also in the case of previous acquisition we have made, is a very good attribute for people, for companies joining us. Moving to the next slide. In terms of positioning, I mean, this is a perfect match with Scanfil. They do high mix, low volume. They do industrial customers, medtech and life science, and also energy and clean tech. They have PCB and box build manufacturing. Totally in line with our strategy. Next. In terms of customer portfolio, their top five customers weigh around 50% of the revenue of the company. As you can see, medtech and life science is in the range of 10%. Then comes aerospace and defense with 37%. Finally, industrial, the way we split our business, representing half of their revenue. Then a certain number of certificates to serve those types of customers. Moving to the next slide. Turnover for 2024 was in the range of EUR 30.6 million with an EBITDA percentage of 11.4%, EUR 3.5 million, which showed a good performance of this operation that has had a long history of very strong cash conversion. That is very positive. The production facility will not be part of the transaction, and rent expenses will actually affect EBITDA by EUR 0.3-0.5 million per year. Summarizing what you have seen before we can open up for Q&A, the acquisition of ADCO is a step for us to speed up the execution strategy when it comes to what we presented a year ago, both increasing our presence in the U.S. and getting a platform to grow there, but also transforming our willingness to do acquisition that fits our strategic match. I think from that perspective, as you have seen before, ADCO is matching perfectly what Scanfil is looking for. I think the second element is that we get here the chance to have a very complementary offering against Atlanta, both having the capability to have different locations in the country, to have redundancy, to have different competence as well. They have, as I mentioned before, prototyping facilities. That's something we were missing in Atlanta that was a bit of a challenge lately. That will be very, very positive. It will also enable us to start to have a stronger sales penetration on the market because of the size we are starting to build in North America. In summary, I will say we are very pleased to have a final agreement with the owner of ADCO. I think this agreement is really an industrial logic between the two companies, Scanfil wanting to grow and develop in the region and ADCO and the family owning the company wanting to find an owner that gives a perspective to the company. Very pleased with the development. Now we're getting to the Q&A. There are quite many questions if I start shooting those from here. Just a sec. First question. How has ADCO's profitability evolved over time and what are the key drivers behind its strong margins? I think that ADCO, I will say the ADCO profitability has slightly improved and has been for quite a long time at a quite high level. I think there is one main driver here is I think they have first developed a very strong competence in linking high mix, low volume with prototyping, which allowed them to offer a very good quality of service to their customer. I mean, I was mentioning a few calls that happened last night with some of their key customers, and that's something also they confirmed once more. I think that's a very good quality of service. They serve quite complex manufacturing and requesting quite a few approval and quality standards to serve those markets. They are playing in a good market and bring added value to manage that complexity and such request of high quality. I will say the aerospace and defense part of the business takeover is obviously one of the drivers of that profitability with all the characteristics it has. Question actually continues. Is the current level sustainable? How do we see it? I think that we believe that the current level has been sustained for a very long time and should be sustained in the way it is. I mean, there is added value and there is a recognized good level of performance from the company. I think that when you are on those niche markets, I think you can definitely continue it. When we talk about niche market, it's still a market that are very sizable. Okay, thank you. Question regarding defense customers. Does this acquisition help you to increase business with old or new defense customers in Europe due to, for example, more credibility or new capabilities to serve this special segment? Yeah, I think there is two answers to that. I mean, one of the answers is obviously even the American customer they are delivering to have export business. So they benefit from the global trends of increase of spends of defense. Obviously, as we are growing and you know we have already a few companies that we are serving in that field, it's good now that we have a new site that has strong competence, certification, and experience. I believe that it will help us both to build credibility with customers, but also to build knowledge within the company. Okay, thank you. About the lease deal, what we have with the factory, will the factory itself be subject to an ordinary lease? Yeah, we will not own the, as it was mentioned, we are not owning the property, but we have a long-term lease that has been agreed as part of the acquisition. Thank you. Additional question actually regarding the facility. Sorry, a lot of questions popping in at the same time. I'll have to keep a track on that. What is your view on the lease terms? Can you expand further in the existing property? Yeah, I think my view is very positive because I think obviously the family will keep owning those facilities. They have and Mark has definitely an interest to facilitate the expansion of the company because of his remaining ownership in it. On top of that, there is both capability to increase our revenue with the current machines because you know that there is only one shift running right now, but also there is within those facilities a possibility of expanding within that land, possibility of expansion, meaning the whole land is not used as of today for manufacturing. There is both possibility to go in the current factory space and possibility to expand that factory space. That has been, I will say, taken into consideration as part of the negotiation. Okay, thank you. About the remaining 20% which Mark will hold, is there any earn-out related to remaining 20% of the company? I think obviously the fact that he will have the 20% ownership in the company gives him the opportunity to increase the value of the company. That's the whole construction behind it, that it will remain for a period of time and there give him the opportunity to sell it to Scanfil at a later stage on agreed terms. Thank you. Regarding our M&A strategy, do you prefer acquiring companies of this size, roughly 3%-5% of your revenue, or are you aiming for larger acquisitions? I think that what we have said is that we aim at 10% growth on a cycle basis and half being acquisitive and half being organic, meaning that basically we need to buy for 5% per year, if I make it very simple. That company gives us that number. Does it say that it's the only size we want to buy? No, we will consider a bigger company and we are considering a bigger company. In a way, this size is very satisfactory when we get the right price, the right profile of company, and in a way, it helps us to achieve our long-term targets. It is not a limitation, but it is a sweet spot when you find the right targ et. A question regarding ADCOproto. What is ADCOproto and does it directly generate revenue? Yeah, absolutely. ADCOproto actually is a service that they offer to their customer to build prototype in a pre-industrialization phase. It is actually a service that generates revenue. Okay, thank you. Still about the 20% seems that this is a subject for many people. Do you have an option to buy the minority stake out in the future? Yes. Given only one shift and procurement synergies, would it be logical to assume increased margins if you succeed getting new business there? I think it's a question where you can answer yes, no, maybe. It will obviously depend on the type of profile and type of customer we bring in. I think at least we can hope to maintain and sustain the level of profitability. Obviously, if we would have to increase significantly, we will also have to make investments. I think that counting on keeping the level of profitability and increasing the revenue is already a very positive story. Okay, thank you. A question on procurement. You said this acquisition will benefit ADCO in purchasing components. How will procurement purchasing change at ADCO post-acquisition? I mean, that's something that we have started to oil very well with the SRX acquisition, where we basically review all the components that get consumed by our companies and make them benefit from our global contract. With all the semiconductor players, we have global contracts, special payment terms, and prices that are negotiated. You will easily recognize that when you are a EUR 900 million company or a EUR 30 million company, you obviously get different conditions. That is usually the way we benefit from those types of acquisitions for the acquired company. Okay. It seems that currently, I would say the summary. If there are no further questions, let's wait for a bit more. Okay, no further questions. If you come up with any questions, you can directly always contact me or Christoph or Kai as well. Now, handing back to you again, Christoph, for the summary. Thank you, Pasi. As I said, I am very pleased of closing that acquisition. I think there is maybe one reason I have not fully highlighted or highlighted enough is I believe not only a company that fits us strategically, we have met people that fit us culturally. It has been a very constructive process, very constructive discussion, very easy to align on our joint goals and ambitions. For me, it's probably the most important things when you do an acquisition of that type that you feel that not only we are in the same business, but we see the future the same way. It's a big step for us. We will double our size in North America. As you have seen also, Christina Wiklund, that is our current Chief Commercial Officer, will take the lead for that region, which will allow more focus and more customer focus in the region. Really looking forward to that development. Thank you very much for joining us today. Very appreciated that you took the time with such short notice.