SAAB — Call Transcript 2026

Good morning, everyone, and welcome to the presentation for Saab's report for the first quarter of 2026. My name is Johan Andersson, and I am responsible for the investor relations, and I will be the moderator here today. Here in Stockholm, I have our CEO, Micael Johansson, and our CFO, Anna Wijkander. Micael and Anna will present the report, and thereafter, we will have a Q&A session. I remind you that you can both ask your questions over the telephone conference, or you can write your question in the web interface, and I will read it out here in Stockholm. With that, warm welcome, and I'll hand over to you, Micael. Thank you, Johan. Also from my side, most warm welcome to this quarter one report. Let's jump right into some highlights. I think we can conclude that we have started this year in a very strong way. Substantial organic growth, 23.6%, and also creating scale gives us a good profitability. Good cash flow and still very intensive in the market. The momentum is very high in the market, so we have many avenues. The order intake, as you've seen, is on par with the quarter one last year. A strong quarter. A couple of examples of important things that happened, and I will come back to deliveries and stuff like that, but the contract from Sweden on the counter-UAS system called Gute is very important. We have created an agnostic, very flexible counter-UAS system, and that I will get a little bit into that later. A very big event that happened this quarter is, of course, the delivery of the first Gripen E from the Brazilian facilities, the factories in Gavião Peixoto, which got lots of interest from the Brazilian side. They are really proud of having this sovereign capability now in country. It's good for us as well, having a hub so we can ramp up the capacity, of course, in terms of Gripen deliveries. We also see that looking at the growth, that our investments in production capacity comes into play. We have still lots to do on that side, but we have now a couple of production lines that have opened in Sweden to support the Dynamics business specifically. That's very important to us since we have a substantial backlog, as you know. Of course, the restructuring that we've done, April 1st, of creating a new business area called Naval, including now Naval Combat Systems together with the former Saab Kockums business, is a very important step to establish a whole offer in the market when it comes to combat system integration, design capability of surface ships, but also creating the systems of systems capabilities, unmanned, manned, teaming on the naval side. More specifically on the numbers, as I said, the order intake and the momentum is good. We increased the medium-sized orders with 28%, almost a book-to-bill of 1.95. Of course, in a certain quarter, you can't look at specific order intake volume. Since we have several large contracts being negotiated, you never know when they actually will happen, in which quarter. This is good from a foundation perspective, small and medium-sized orders. The growth was excellent organically, SEK 19.2 billion. Growth in all business areas, double-digit numbers. Specifically, Surveillance had a very good quarter in terms of growth. Also, the EBIT growth is 32%, SEK 1.9 billion in numbers. That is, of course, an effect of the increased top line, creating scale effects and giving us 10% margin, which is excellent. Also a good quarter when it comes to the first quarter, looking at the cash flow, operational cash flow over SEK 1 billion, which is about, of course, deliveries and payment from the customers. That is, of course, something that we always look into diligently, that we've guided to positive cash flow also going forward, of course. That's where we are after the first quarter. I give you a few comments on each business area. The growth in aeronautics is, of course, much from the Gripen program, where we have lots of intensity and also deliveries ramping up. We had this fantastic event in Brazil now. We have two factories that can actually deliver Gripen aircraft. That will also, of course, be a good relationship increase between Brazil and Sweden when it comes to the further development of the Gripen E, which is the aircraft is incrementally possible to develop through software and so forth. It's not only about production. We have a couple of contracts on the T-7, the Lot 3 and Lot 4 of the T-7, which increase the backlog, of course, but we still have a burden of not having the production ramping up quickly enough. As I've said before, this will take a couple of years before we actually get to the right numbers, but many hundreds of aircraft are in play for this. In the end, there will be probably a couple of thousand aircraft. This will be a good program, but it's a bit of a fight to get this fantastic facility delivering more aircraft out of the facility. They are delivering now, at least. Then, of course, we've launched a Gripen Colombian program, which is very important to us, which we did win then in December last year. Dynamics. Excellent demand in the market, 1.2 book-to-bill. There's a good order intake and good growth as well. The mix of ground combat orders and missile systems orders. Remember, Dynamics is support weapons, it's missiles, it's training and simulation, it's also camouflage nets, signature management, which is a good mix of things. All the parts in Dynamics are doing really well. Deliveries are important. Here we have the production facilities, a couple of them in Sweden now up and running, in the Karlskoga area, which is really good to us. I must say that the profitability is of course excellent in the quarter as well, which Anna will go into more detail about later. Surveillance, very strong demand in the market across the whole portfolio. We have a pipeline of discussions on the GlobalEye with the different countries. I think that has potential going forward. Also, of course, the ramp up on the sensor side, and I want to highlight specifically the Giraffe 1X, where we talked about that we actually manufactured these sensor systems on a bit of speculation rather than only on contracts, and that's good for us, because we've been able to deliver a number of systems to the Middle East countries that needs to find and detect all the missiles and the drones coming in over their territory. That's good for us, and we will now aim for ramping up that production to over 300 a year. That's a good volume business on the sensor side. Then, of course, this counter-UAS system that Sweden contracted us with is a big initial contract, an important one. I think that area will develop into also not only being military applications, but also protecting critical infrastructure in the total defense perspective going forward. As you can see, the growth in Surveillance was excellent, over 30%. A couple of comments then. The counter-UAS system is a very modular system in terms of the vehicles, the sensors, the command and control, and also then agnostic when it comes to which actually effector do you use. It is a sensor to shooter system, which we put together in a very short time since we had the different products and components of it and integrated it to be operational extremely quickly. That is the key. We can do this with existing things that we have to provide things that will make a change in the deterrence and the defense very quickly. We continue then to adapt different type of effectors going forward. Either it's the 40 mm from Bofors, from BAE Bofors or whether it's the Trackfire with the 30 mm cannon or whether it will be the Nimbrix going forward. This is important to be flexible on the effector side, and it's proven very effective. When we come to Saab Kockums, which will be the last time I say Saab Kockums, because this now will be a new business area named Naval going forward. This is the last quarter we reported like this. They also had good growth and we are of course, in intensive discussions with Poland on the submarine program, and we hope to finalize that, of course, in the next quarter, but I can't promise exactly when. It's intensive discussions and according to plan. Also on the Polish side, the next Sigyn ship was launched in January, a very important program to us, of course, and also good security politics collaboration thing between Sweden and Poland. Then we have now a more consolidated business area going forward, offering a combination of naval capabilities, and also being able to do the combat system integration between all the components in the same area and offering that in a different way, which I think will be very good for the business, going forward. Combitech is also doing really well. Good order momentum, and of course, it is the total defense perspective and how much we have to do in terms of creating better deterrence and processes in different parts of the Swedish society that drives growth, but also the military side and the contracts we get from the Defence Materiel Administration. This is excellent performance, growth of 16% with good profitability. Of course, it's all about getting the competence and the skills in the organization growing, which has gone really well to grow this business. I'm really pleased with this. On the sustainability side, a couple of important things happened, of course, during the quarter as well. We have done now a compliance sustainability statement report in our year-end report, the annual report, I mean, for 2025. Completely in compliance with the requirements then, the CSRD requirements. That has all the details about the metrics, the targets, and what have you, if you want to dive into that. Then we've looked into a life cycle assessment when it comes to our Giraffe 1X, because okay, we can have control over the Scope 1 and 2, but Scope 3 is also very important, how you use the system. We have concluded, and we are in discussions with end users, that if they do go from supporting the system from a diesel sort of fuel perspective or going to electrical power or a biofuel type of setup, you would gain a lot when it comes to the emissions, of course. That is what we are pushing now. This system can be connected to any normal 220 volt outlet. It's really flexible in that side. We've done something that is prepared to do a big effect on sustainability if the end customers choose to use it that way. Of course, we're looking into when we get volumes in a production, like in Dynamics, of course, how we use the packaging and how we reuse material for that and not wasting that adds lots of savings on the emissions, but also cost, of course, for us. We're changing that. If you look at the quarter sort of emission perspective, we have an increase due to more flight tests compared to the last quarter last year. We have more business travel also because of the intensity in the market, but it's also a period of cold temperatures. Looking at all the sites, of course, and a new site comes into play, you get a slightly higher footprint. We are on the right track towards our targets. We are 36% down, when it comes to the reference year 2020, when it comes to emissions towards our targets. We're doing well on that side. With that, I will hand over to the details, and Anna will walk you through a little bit more of the financial results. Thank you, Micael, and good morning from my side as well. It is clear that we have started the year with a strong first quarter, and I will soon go into the details of the financials. Before doing that, I think it's good to look at some trend and what we have achieved so far. Over the recent years, we have achieved strong sales growth, and that is supported by our leading offering and the trust from our customers. Consistent with a profitable growth strategy, we have scaled our operations, we have expanded our capacity, and we have continued to deliver on our customer commitments. On top of this, we also have a healthy backlog, and we are continuously working on efficiency, which will support our performance going forward. Looking at how the trend has developed after this first quarter, 2026, we have now delivered an organic sales CAGR of 24% so far in our medium-term target period. Importantly to note here is that we have had double-digit sales growth in all our business areas. We have also continued to deliver profitable growth, and that has shown that we are driving our operating cost leverage, and our EBIT growth is more than our sales growth. It's now 33% for these periods. To note here, it's also important to say that we have increased our spendings in R&D to be able to be relevant to have future capabilities in our portfolio. With that, we are progressing well towards our medium-term targets. With that then, now let's take a closer look at the quarter. The EBIT increased by 32%, largely driven by the sales growth and leverage on operating expenses. We can see that marketing expenses are flat compared to last year, and the administrative expenses are slightly lower. We continue to ramp up the R&D efforts as planned. All in all, we have an operating margin of 10% compared to 9.2% last year. Aeronautics. Here we had good sales growth of around 15%. However, we can see that the margins decline, and that is due to somewhat increased R&D amortization, and we also have a negative currency effect impacting. Also, as Micael said, the T-7 program has still challenges with profitability and ramp up, but we have good order intake here in the quarter. That is impacting the EBIT margin negative in Aeronautics. In Dynamics, we continue to expand capacity and to deliver on our backlog. We have a favorable mix this quarter together with the sales growth. That drives the EBIT growth to 38% growth this quarter and an EBIT margin of 17.5%. As always, when we talk about Dynamics, it's important to remember that the EBIT margin varies between the quarter, depending on mix and what deliveries we have. Surveillance also had a very strong quarter with good progress across all business. One good example of that, and where we had particularly good performance, was in the surface sensor area with several deliveries. Overall sales grow by 32% and the EBIT grow 52%, and that is driven by the mix and also the leverage in operating costs. Kockums also growing, but here we can see an impact of the high activities that we have in the marketing area with the campaigns ongoing, for instance, in Poland. Here the marketing cost has increased compared year-over-year. That is why we have a small decline in the EBIT this quarter. Not visible here in the slide, but worth mentioning, is also Combitech, that has also a good development and high activity through their increased number of consultants. They have an operating margin of 11.3% this quarter. Also within corporate, we have improvements compared to last year in our small Skeldar business and also in our minority portfolio, which improves the margin in corporate. As you already know, we have established a new business area from April 1st, the business area Naval. The purpose is to consolidate and to strengthen our total naval offerings to deliver greater value to our customers. From the second quarter, Q2, we will report financially in this new structure and you find more details on our website, and you can also find the restated financials to facilitate your comparison. The key change is that we have moved or transferred the business unit, Naval Combat Systems, from Surveillance into this business area Naval. It's largely a system integration business driven by projects, and historically they have had around SEK 6 billion per year in sales. Since 2024, they have, on average, had an operating margin of 6%. When you look into the details, you will notice that there are two quarters in 2025 with significantly lower margins in this business unit. This is due to the nature of this business, where we have this project mix depending on how the margins is every quarter, and also that we had some margin adjustments in a few projects within Naval Combat Systems. Looking ahead, this is a business with future growth, and we see potential for profitability over time. More details are shown in our homepage. Next slide is the income statement for the quarter. The organic growth was 23.6%, reported was 21.4%. Same here this quarter as last quarter, the currency impacting us negatively with 2 percentage points on the sales growth. Gross income is increasing, but margin is flat, and that is due to mix. If you look at the business areas, we can see that they are improving year-over-year in gross margin. I talked about the EBIT that has improved, but let's then turn to the financial net. Here we have a difference since last year because we are now increasing the application of hedge accounting to also include derivatives that hedge currency in the tender portfolio. From now on, you will see currency gains and losses from the tender portfolio in the other comprehensive income and not in the financial net. With that, we will have less fluctuation in the financial net going forward. Important to note here is that we have not changed our hedging principles. It's just that we have changed the application of how we use hedge accounting. Finally, we have growth in our EPS driven by the EBIT growth, and also the net income is growing this quarter. Turning to cash flow. We had a strong cash flow from operation of SEK 2.8 billion this quarter. Main contribution came from Surveillance and Dynamics, and the largest reason for that is the several customer payments, but a bit offset by inventory build-up, and that is also what's impacting the change in working capital. The investments increased compared to last year, which is totally according to our plan, and they were up from SEK 1.6 billion-SEK 2 billion this year. We now have an operational cash flow of SEK 1 billion after this quarter. The free cash flow is impacted by higher tax. We have higher supplementary tax related to income taxes paid for 2025. That's the main reason why that is negative SEK 1.3 billion and the free cash flow slightly negative or minus SEK 300 million. All in all, we have an improvement also in return on capital employed, driven by our improved profitability, but also on our improved capital turnover, so it's now above 16%. The cash conversion is 53% after this quarter. Progressing well towards our medium-term target to have a cash conversion above 60%. The net liquidity position and balance sheet is still strong. We have a net liquidity of SEK 4 billion, almost unchanged since last quarter. Cash and liquid investments amounted to SEK 18.1 billion, and in addition, we have an unutilized revolving credit facility of SEK 6 billion. Let's turn to the future and our order backlog. Over time, we have built a solid order backlog, which is currently SEK 274 billion. This, of course, position us for a good position for long-term growth. Compared to last year, we are in a better position and have strengthened the backlog for all years ahead. In particular, for the remaining nine months here, the backlog has increased 28% compared to where we were last year. For next year, it has increased by 56% compared to last year. Also, to note in the backlog is that we have a good balance between our business areas. Aeronautics has now increased their shares, so they are around 30%, and then it's Dynamics and Surveillance, which adds up to most of the backlog. The international orders is around 72% of this backlog. All in all, this underpins a good position to support for future growth going forward. Then finally, before ending my presentation, let's just remind us about our medium-term target. We are going to deliver around 22% sales CAGR for the period 2023 to 2027. We will have an EBIT growth that is higher than organic sales growth and a cash conversion of more than 60% during this period. Thank you very much. With that, I hand over to you, Johan, to open up the Q&A. Thank you very much, Anna and Micael. Let's open up and start the Q&A session. Please, operator, do we have any questions over the telephone conference? Anyone who wishes to ask a question from the phone may press star and one at this time. The first question comes from the line of Yassin Moktadir, UBS. Please go ahead. Hi. Thank you for taking my question. Firstly, could I start with Aeronautics? You cited several ongoing Gripen campaigns. Could you talk us through those and your confidence around winning potential orders there? Then within Surveillance on GlobalEye, you also mentioned some discussions that you're having, and we've been seeing increasing press releases or articles around the E-3 replacement. Is there any further developments there, too? Thank you very much. Okay. Thank you for that question. On the Gripen side, of course, I mentioned we're still in discussions with Canada, which is, of course, about decision on sovereignty and the Canadian industry and how we would do a tech transfer and setting up a hub and all that. It would also mean a potential contract with Canada. Hard to say exactly when that sort of decision will be taken. It's an evaluation ongoing, as you know, and it's probably on prime minister level to go either way. It's hard to predict, but it's intensive. We have discussions all the time with them. Of course, since we had President Zelensky in Sweden, last year, agreeing with Ulf Kristersson that they will go for the Gripen. We are in discussions with Ukraine to move that forward. Those are two potential big ones, of course. To say exactly confidence level and exactly when that can happen is difficult, of course. It's always political, but we're moving ahead on those two. There is an interest from Portugal, and some other sort of earlier campaigns. There is an interest. We have a ramp-up of capacity ongoing. We're going to deliver more aircraft, many more, to both Sweden and Brazil and then Colombia and Thailand. Lots of intensity in that area. On the GlobalEye side, you know that France contracted us last year. There is an option for another two in that contract that we're discussing. Of course, we have given information to NATO, connected to the AFSC program. Let's see what happens there. That's an opportunity, of course. There is an interest from Germany, from Poland. There's a pipeline of opportunities in different stages, of course. I would say it's a big interest for both platforms, right now. Thank you, Yassin. Please, operator, do we have the next question? The next question comes from the line of Björn Enarson, Danske Bank. Please go ahead. Thank you. Can you hear me? Yeah, absolutely. Loud and clear. Yeah, good. Sorry for this. First of all, you touched upon the corporate and other items there. You have a solid result overall, but I'd like to argue that a quite big deviation was within the corporate. Can you talk a little bit about that and how we should think about that going forward? Also, Dynamics had a good quarter in terms of deliveries, obviously good for profitability. Can you talk a little bit about how the profile for Dynamics looks, for the year? Thank you. Do you want me to start with the corporate question? Please. Yep. In corporate, we have different costs that can vary between quarters. We have some periodization impacts. Cost that comes here could also be shareholding program, which of course nothing that we can predict where the share price is going. Cost for IT and security, this has more coming up later during the year that we had last year. I think when you look into the corporate, a good rule of thumb could be to look at the level where we were last year. For the full year? For the full year. Yes. Okay. On the Dynamics side, they have a huge backlog, of course. It's a good sign that they have now good deliveries and investment, as I said, in capacity is coming into play, which is really important to us. There's a good foundation for deliveries going forward. I've said before that they will grow, but we'll not guide on that level, so to say, on the business area level, and we've said that mid-double digit numbers is still depending on the mix of things within Dynamics, which contracts, the mix of missiles, support weapons, training, and signal to management. That defines a couple of percentage up and down in each quarter, so to say. We had a good mix this quarter, but they should be really profitable, which they are. That's as much as I can say. Better and better foundation for deliveries though, on volume side. Thank you. One last question. On the order that you touched upon received in early April, C-UAS. Super interesting. Can you talk a little bit about the market potential, number of units or countries or anything? You touched upon that it has a good export potential. Yeah. I think counter-UAS, if you're having efficient and cost-efficient systems, especially on the effective side, and that you can actually be a bit agile when it comes to which one you use, you will have a good market opportunity. Everyone is asking for this kind of system. I think there will be good potential. I don't want to go into numbers, but it's of course an export potential, but also in the total defense perspective, you have to have systems protecting critical infrastructure. That is more of a governance problem, I would say, because it's not that the defense forces can't protect every critical infrastructure in a country, it's more about how the country is structured. There will be quickish, I would say, more expedited contracts in certain countries doing that, and it will be a bit slower because of regulations in other countries, but extremely good potential on their system. We have a very cost-efficient sensor, an excellent command and control, a low footprint, and now we have in different versions of effectors and I look forward to when Nimbrix come into play because that will be an important, reasonably long range capability, with good cost levels. There's more to do here and good potential, absolutely. Thank you very much, Björn. Anything public on web? Yeah. Thank you. Sorry. Go ahead, if you had a. No, it was just a quick one on when, if on the public statements on when this is going to be operational in Sweden. Uh- Quick ramp up or is it? Yeah, a version of it is already operational from the Air Force perspective. The deliveries on this one will be in the next year timeframe, roughly. Thank you. Thank you very much, Björn. Let's take two questions from the web interface here. One was, from an order intake and growth side, do you see any challenges in the market? Anything that hampers you when you look at market demand? I would say no, not really. I see the demand is still high there, and it's a bit of different investment paces or speed in different countries depending on where you are. I think the region where we are in, Germany, Poland, Baltic states, Nordics, U.K., is moving a bit quicker maybe than other countries, but still good demand in the broader perspective. What is really important, of course, is again, as I've said many times, you have to work diligently with your supply chain. At depth, not only the tier ones. You have to look into, okay, how resilient are you in the depth of the supply chain? When you come down to component level, material level, how do you make sure you have this in stock or they have it in stock to be able to deliver? This is something we work really diligently upon to make sure that we have protection. It's not here and now really because we have quite a lot in inventory, in stock. Over time, we have to create more resilience. That's the same thing for all the defense industries and broader than that actually, when it comes to dependency on China, when it comes to raw material and looking at the data sensors and the memory components that now are in huge demand to build up these things, of course, that makes it important to be on your toes and secure deliveries early. Yeah. Absolutely. Another question we have is that Anna described that you have grown with 24% now, CAGR during the period. Are you investing enough to really support that growth or getting capacity out there in a decent way? What's your opinion there? I think we are. I think we will continue to invest, that much I can say. We invest on the level of $8 billion-$10 billion a year in increasing capacity, and that continues now. We will adapt that of course, to when we have everything in place, which we don't have yet. We have facilities in U.S. coming into play this year and in India next year. We will continue to invest, as we've shown already in the first quarter, to make sure that we can handle our backlog, but also the demand in the market. We are forward leaning here. Yeah. Absolutely. Thank you very much. Please, operator, do we have the next question from the telephone conference? The next question from the phone comes from the line of Henric Hintze, ABG. Please go ahead. Hi. This is Henric at ABG. First of all, I just wanted to ask on the Aeronautics margin here. It was down year on year, and I think even if you exclude the increased R&D amortization, it was still down a bit. At the same time, you're saying that Gripen is ramping while T-7A startup costs are still impacting negatively. I'm just wondering how we should think about that margin development there, given those things. From a generic perspective, I would say that I've always said that sort of without the under absorption and the startup things we have on the T-7 and the mix of other things, this business has the potential to have sort of high single-digit numbers on the EBIT side. That's what we're aiming for in the end. Now we had the higher amortizations, we had the effects of the T-7, and then we had the currency effects at the same time. Nothing sort of major happened elsewhere in the organization. They are ramping up and they are growing. That's sort of the trend view one should have going forward. That's what we are aiming for, and we will get there. Just to add on the currency we had in the quarter, comparing quarter Q1 2025, we have a positive currency impact, and this quarter we had a negative, so the effect is double, so to say. Exactly. Bigger. Mm-hmm. Okay. It's mainly the currency impact. Yeah. Yeah. Now that you mentioned, you usually say high single-digit EBIT margin for Aeronautics. Does the move of the Naval Combat Systems business unit in any way alter what you have previously said about the margin potentials in Surveillance and Kockums? Well, we don't really guide on margins like that, but if you look at the mix of the business, of course, that changes a bit. Now, the Naval Combat Systems, which you can actually dig into a bit, has the potential to be higher than the average 6% that we've shown in the slides here all the time. It depends a lot on sort of the project set up and whether you have a couple of problematic projects, which we've had, and we've taken actions now to secure for the future that we don't get into more problems. It has potential. If you look at what can be done from a business perspective, having both sort of manned platform and unmanned capability in the naval domain connected to a combat management system, that is an offer that has potential to increase the margins, going further. Since literally just pure facts is, of course, that if you remove sort of the Naval Combat Systems business from Surveillance, you automatically get a little bit of higher margin, since we've said that it had 6% average since 2024. That's sort of the effects that we've seen so far. The business will tell what the Naval business area will go when it comes to margins going forward. It has potential. That's why we've done it as well, to do more comprehensive business with combat system integration involved. Okay. Very good. Maybe one final one from me just on Peru, because there's been some news in the past couple of days here about the U.S. saying that Peru has decided to go with the F-16. Have you heard anything concrete from Peru? I've looked at media the last sort of 24 hours, and if it's true that they have selected F-16, of course, we have to respect that. We still think we had a better cost-efficient, better offer. It's up to Peru to decide which one they want. We're looking into details, of course, to find out more, but I don't know more than that right now. Okay. Thank you very much. Thank you. Thank you very much, Henric. We got another detailed question here from the web chat, and it's about Skeldar. You wrote about that you had good growth in Skeldar, and that also you had an improved result from that part. What is Skeldar actually? Skeldar is a rotary mid-size. Not a mid-size helicopter, but it's a rotary mid-size drone you would say, that can do surveillance or, yeah, it can actually carry effectors as well. It has had sort of an uplift in terms of contract because it's needed in Ukraine. That's what it is, it's a rotary drone, but a little bit bigger size. It's often used in the naval domain from ships to do surveillance and even actually checking what kind of fuel in the commercial market ships are using because it can sort of, what do you call it, smell the fuel type of that. It has potential application wise, yeah. Okay. Good. Thank you. Thanks for the clarification. Operator, do we have any more questions on the telephone? The next question comes from the line of Tom Guinchard, Pareto Securities. Please go ahead. Thank you. A question on the, let's say, new Surveillance division without Naval Combat Systems. In terms of mix and margin here on the Giraffe program, you said the 1X is ramping to 300 a year. How much could that contribute to margins? Because my guess is that the smaller systems tend to have higher margins than the 4As. Is that a correct assumption, or how should we look at the sort of mix moving forward? It's very good to have volume on that side. You're absolutely right. It does have good margins, and it is really cost efficient also from the customer side in terms of how capable that sensor is, and that's why the demand is so high. However, it's not as if I'm trying to tout the most expensive sensor. If you look at the portfolio of Surveillance, of course, the GlobalEye business and the more long-range type of sensor capability is of course creating higher volumes in terms of revenue. The more Giraffe 1Xs that we get out of the house and sell, of course, that helps the margin. No question about it. How that will balance the other parts of the portfolio is a little bit hard to say right now. When you get big contracts on the GlobalEye, that will be dominating, also good margins, but maybe not as good as a G1Xs. It helps, that much I can say. Thanks. In terms of R&D, are you looking at radar systems that are even more long range, or are you sticking with the sort of existing platforms and building on them? Well, we're not in the line of those super big long-range systems, but we do systems up until 500 km on the land-based side, same on the naval side. Then we have the whole portfolio to the G1X then, which is 150km-200 km in terms of range. That's where we are, and we are investing, of course, in fighter sensor capability, which is important to us. Then other versions of unmanned capability when it comes to airborne early warning. There is lots happening on the sensor side for sure, but that's sort of where the R&D is going. The other big portion of the R&D is, of course, autonomous systems, in all domains, when it comes to the air domain, land domain, but especially now the air domain and the naval domain. Using AI is another big thing in terms of R&D right now, to give you a flavor of where R&D is going. Perfect. Thank you. Thank you very much, Tom. Operator, do we have any final question in the telephone conference? The last question comes from the line of Afonso Osório from Barclays. Please go ahead. Hello, everyone. Good morning. Thank you for taking my questions. Micael, I think you mentioned before that you expect positive cash flow going forward. Is that on the annual figures, or would you expect positive cash flow from a quarterly basis this year as well? Just double-checking on that. On the T-7 program, I appreciate it's still quite difficult to see the phasing of this in the coming quarters, but what is the current run rate on the P&L from this contract? Just one final quick one on the Middle East situation. When do you probably see this incremental demand flowing through your numbers? Is it going to be mostly from 2027, or do you expect something extra in 2026 as well? Thank you. Well, on the T7, you can look at last year, roughly SEK 100 million sort of on average and under absorption. That will improve when we get more platforms out of the facility, of course. That's roughly the run rate, if I remember correctly. The Middle East is we have some sort of business in Middle East. It's sort of airborne early warning. It's some command and control, and then sensors. There is substantial demand on the sensing side right now, and how much that, where that will go. Some deliveries is happening as we speak, and then there will be more deliveries coming. We've already delivered from demand and delivered within two weeks, so that's why it's important to manufacture G1Xs on speculation rather than done on contract. The first one was- Was that we promise a positive cash flow every quarter, or is it more on a yearly- The guidance we have is just sort of cash conversion higher than 60% over the period of 2023 to 2027. There are always fluctuations between quarters when it comes to cash flow, depending on where the payment milestones lies and how our investments comes into play. I can't give you any specifics on each quarter. I can conclude that despite substantial investments this quarter, we had a good operational cash flow, which is excellent, which means that we get payments from our customers as well continuously. It's important to develop that way, either sort of advanced payments to finance initial things in programs or dense milestones in the contracts. That doesn't mean that we have to be sort of acting as a bank towards the customer, and we're moving in that direction. Cash flow positive is important and more than 60% over the period. Yep. Perfect. Operator, I think we have a final question. Is it from Morgan Stanley, or do we have anyone left in the queue? Yes. Marie-Ange Riggio from Morgan Stanley. Please go ahead. Thank you. Thank you very much for taking my question. I have two, actually. The first one is on Aeronautics. Can you just describe your production ramp-up of the Gripen? Because I think you have quite a target internally to go to 20-30 aircraft in the future. Maybe just can you remind us what is your current production rate and where are you in this journey to increase the rate? The second question is on Ukraine, because we have seen increasing conversation about the EUR 90 billion loan for Ukraine from Europe recently. What we imply for Saab as a whole, for the whole portfolio, and probably have you seen any progress in your discussion with them about the fighter jet contract and can this EUR 90 billion loan be a source of funding for at least a first batch? Thank you very much. Well, when it comes to Ukraine, you're right. Positive news on that sort of the funds will be released, of course, the EUR 90 billion, and from that, the EUR 60 billion is supposed to be used for military investments. I assume it's not up to industry to create the funding structure of a deal on the fighter aircraft, but some of that money must be used, of course, for the fighter acquisition, and then has to be supported from other countries like Sweden and others that want to support Ukraine with fighter capability going forward. That's moving in the right direction now, but we don't sort of wait for that in terms of the discussions with the end user on the fighter discussion. We are, of course, working on the proposal and the negotiations as we speak on how to, over a period of time, get fighter capability to Ukraine as quickly as possible, which means that we are also looking into investments for that sort of ramp up that would mean if they go for, in the end, over many years, of course, 150 aircraft, that would mean that we have to sort of ramp up for deliveries on that from 2028, 2029 going forward. That we're doing as well. The first one once again. First one was our, say, the target capacity for Gripen, as we have said, is 20-30 or progressing- Let's say we are at roughly 15 a year now, and then we have now started to deliver from Brazil hub, and then we are looking at, depending on the contracts that we get, to be sort of somewhere between 20-30 and more likely to the higher end of that span. That's how I see it, and that is as quickly as possible. I would say to be around 20 in a year's time is quite possible, or a couple of years time, a little bit higher than that. That's sort of the timeframe a bit, generically speaking. Good. Thank you very much. Are you all right with that, Marie-Ange? Yeah. Thank you so much. Thank you very much. Thank you. Did we have a final question also, operator? How many final? How many final questions here today? They're popping in. That's fine. The final question is from Daniel Djurberg, Handelsbanken. Please go ahead. Thank you, operator, and good day, gentlemen. Sorry if this question has been asked already. I had to jump into another call for a minute and ask some questions there as well. The improvement seen in corporate and other, primarily related to the UMS Skeldar operations and the operating income from minority portfolio, is that sustainable or was it one-time items more or less, or how to think? I can answer. We had that question earlier, but I can answer it again, of course. Yeah. Okay. Sorry. No worries at all. No, what we think is when you look at corporate, one good level to look at is the level that we had last year for the full year as a rule of thumb. In corporate, we have several costs that are depending on periodization and costs that come later in different quarters. It's costs related to IT, security. We're also building up our digitalization units and also costs related to the share matching plan, the shareholder program that we have. Different types of costs in corporate and changes over the quarter. It varies over the quarter, I would say. Thank you so much for repeating. I will get or I will not be cut back in queue, I will say. I wish you a good Q2 instead. Okay. Thank you very much. Thank you very much. Thank you. Okay, operator, do we have any further questions or? We have no more questions at this time. Okay. I think with that, we thank you everyone very much for listening in to our presentation of the first quarter of 2026. We will be on the road now, first in Stockholm, then we are going to Copenhagen. You can meet us also at the Eurosatory Show in Paris later, and then we will also be in Frankfurt. We will have the Q2 report in July. Thank you very much for listening in, and have a nice day. Thank you.

Speaker 6: Good morning, everyone, and welcome to the presentation for Saab's report for the first quarter of 2026. My name is Johan Andersson, and I am responsible for the investor relations, and I will be the moderator here today. Here in Stockholm, I have our CEO, Micael Johansson, and our CFO, Anna Wijkander. Micael and Anna will present the report, and thereafter, we will have a Q&A session. I remind you that you can both ask your questions over the telephone conference, or you can write your question in the web interface, and I will read it out here in Stockholm. With that, warm welcome, and I'll hand over to you, Micael. Good morning, everyone, and welcome to the presentation for Saab's report for the first quarter of 2026. good morning everyone and welcome to the presentation for saab's report for the first quarter of 2026 My name is Johan Andersson, and I am responsible for the investor relations, and I will be the moderator here today. my name is johan andersson and i am responsible for the investor relations and i will be the moderator here today Here in Stockholm, I have our CEO, Micael Johansson, and our CFO, Anna Wijkander. here in stockholm i have our ceo micael johansson and our cfo anna wijkander Micael and Anna will present the report, and thereafter, we will have a Q&A session. micael and anna will present the report and thereafter we will have a q&a session I remind you that you can both ask your questions over the telephone conference, or you can write your question in the web interface, and I will read it out here in Stockholm. i remind you that you can both ask your questions over the telephone conference or you can write your question in the web interface and i will read it out here in stockholm With that, warm welcome, and I'll hand over to you, Micael. with that warm welcome and i'll hand over to you micael

Speaker 8: Thank you, Johan. Also from my side, most warm welcome to this quarter one report. Let's jump right into some highlights. I think we can conclude that we have started this year in a very strong way. Substantial organic growth, 23.6%, and also creating scale gives us a good profitability. Good cash flow and still very intensive in the market. The momentum is very high in the market, so we have many avenues. The order intake, as you've seen, is on par with the quarter one last year. A strong quarter. A couple of examples of important things that happened, and I will come back to deliveries and stuff like that, but the contract from Sweden on the counter-UAS system called Gute is very important. We have created an agnostic, very flexible counter-UAS system, and that I will get a little bit into that later. Thank you, Johan. thank you johan Also from my side, most warm welcome to this quarter one report. also from my side most warm welcome to this quarter one report Let's jump right into some highlights. let's jump right into some highlights I think we can conclude that we have started this year in a very strong way. i think we can conclude that we have started this year in a very strong way Substantial organic growth, 23.6%, and also creating scale gives us a good profitability. substantial organic growth 23.6% and also creating scale gives us a good profitability Good cash flow and still very intensive in the market. good cash flow and still very intensive in the market The momentum is very high in the market, so we have many avenues. the momentum is very high in the market so we have many avenues The order intake, as you've seen, is on par with the quarter one last year. the order intake as you've seen is on par with the quarter one last year A strong quarter. a strong quarter A couple of examples of important things that happened, and I will come back to deliveries and stuff like that, but the contract from Sweden on the counter-UAS system called Gute is very important. a couple of examples of important things that happened and i will come back to deliveries and stuff like that but the contract from sweden on the counter-uas system called gute is very important We have created an agnostic, very flexible counter-UAS system, and that I will get a little bit into that later. we have created an agnostic very flexible counter-uas system and that i will get a little bit into that later A very big event that happened this quarter is, of course, the delivery of the first Gripen E from the Brazilian facilities, the factories in Gavião Peixoto, which got lots of interest from the Brazilian side. They are really proud of having this sovereign capability now in country. It's good for us as well, having a hub so we can ramp up the capacity, of course, in terms of Gripen deliveries. We also see that looking at the growth, that our investments in production capacity comes into play. We have still lots to do on that side, but we have now a couple of production lines that have opened in Sweden to support the Dynamics business specifically. That's very important to us since we have a substantial backlog, as you know. A very big event that happened this quarter is, of course, the delivery of the first Gripen E from the Brazilian facilities, the factories in Gavião Peixoto, which got lots of interest from the Brazilian side. a very big event that happened this quarter is of course the delivery of the first gripen e from the brazilian facilities the factories in gavião peixoto which got lots of interest from the brazilian side They are really proud of having this sovereign capability now in country. they are really proud of having this sovereign capability now in country It's good for us as well, having a hub so we can ramp up the capacity, of course, in terms of Gripen deliveries. it's good for us as well having a hub so we can ramp up the capacity of course in terms of gripen deliveries We also see that looking at the growth, that our investments in production capacity comes into play. we also see that looking at the growth that our investments in production capacity comes into play We have still lots to do on that side, but we have now a couple of production lines that have opened in Sweden to support the Dynamics business specifically. we have still lots to do on that side but we have now a couple of production lines that have opened in sweden to support the dynamics business specifically That's very important to us since we have a substantial backlog, as you know. that's very important to us since we have a substantial backlog as you know Of course, the restructuring that we've done, April 1st, of creating a new business area called Naval, including now Naval Combat Systems together with the former Saab Kockums business, is a very important step to establish a whole offer in the market when it comes to combat system integration, design capability of surface ships, but also creating the systems of systems capabilities, unmanned, manned, teaming on the naval side. More specifically on the numbers, as I said, the order intake and the momentum is good. We increased the medium-sized orders with 28%, almost a book-to-bill of 1.95. Of course, in a certain quarter, you can't look at specific order intake volume. Since we have several large contracts being negotiated, you never know when they actually will happen, in which quarter. This is good from a foundation perspective, small and medium-sized orders. Of course, the restructuring that we've done, April 1st, of creating a new business area called Naval, including now Naval Combat Systems together with the former Saab Kockums business, is a very important step to establish a whole offer in the market when it comes to combat system integration, design capability of surface ships, but also creating the systems of systems capabilities, unmanned, manned, teaming on the naval side. of course the restructuring that we've done april 1st of creating a new business area called naval including now naval combat systems together with the former saab kockums business is a very important step to establish a whole offer in the market when it comes to combat system integration design capability of surface ships but also creating the systems of systems capabilities unmanned manned teaming on the naval side More specifically on the numbers, as I said, the order intake and the momentum is good. more specifically on the numbers as i said the order intake and the momentum is good We increased the medium-sized orders with 28%, almost a book-to-bill of 1.95. we increased the medium-sized orders with 28% almost a book-to-bill of 1.95 Of course, in a certain quarter, you can't look at specific order intake volume. of course, in a certain quarter you can't look at specific order intake volume Since we have several large contracts being negotiated, you never know when they actually will happen, in which quarter. since we have several large contracts being negotiated you never know when they actually will happen in which quarter This is good from a foundation perspective, small and medium-sized orders. this is good from a foundation perspective small and medium-sized orders The growth was excellent organically, SEK 19.2 billion. Growth in all business areas, double-digit numbers. Specifically, Surveillance had a very good quarter in terms of growth. Also, the EBIT growth is 32%, SEK 1.9 billion in numbers. That is, of course, an effect of the increased top line, creating scale effects and giving us 10% margin, which is excellent. Also a good quarter when it comes to the first quarter, looking at the cash flow, operational cash flow over SEK 1 billion, which is about, of course, deliveries and payment from the customers. That is, of course, something that we always look into diligently, that we've guided to positive cash flow also going forward, of course. That's where we are after the first quarter. I give you a few comments on each business area. The growth was excellent organically, SEK 19.2 billion. the growth was excellent organically, sek 19.2 billion Growth in all business areas, double-digit numbers. growth in all business areas double-digit numbers Specifically, Surveillance had a very good quarter in terms of growth. specifically surveillance had a very good quarter in terms of growth Also, the EBIT growth is 32%, SEK 1.9 billion in numbers. also the ebit growth is 32%, sek 1.9 billion in numbers That is, of course, an effect of the increased top line, creating scale effects and giving us 10% margin, which is excellent. that is of course an effect of the increased top line creating scale effects and giving us 10% margin which is excellent Also a good quarter when it comes to the first quarter, looking at the cash flow, operational cash flow over SEK 1 billion, which is about, of course, deliveries and payment from the customers. also a good quarter when it comes to the first quarter looking at the cash flow operational cash flow over sek 1 billion which is about of course deliveries and payment from the customers That is, of course, something that we always look into diligently, that we've guided to positive cash flow also going forward, of course. that is of course something that we always look into diligently that we've guided to positive cash flow also going forward of course That's where we are after the first quarter. that's where we are after the first quarter I give you a few comments on each business area. i give you a few comments on each business area The growth in aeronautics is, of course, much from the Gripen program, where we have lots of intensity and also deliveries ramping up. We had this fantastic event in Brazil now. We have two factories that can actually deliver Gripen aircraft. That will also, of course, be a good relationship increase between Brazil and Sweden when it comes to the further development of the Gripen E, which is the aircraft is incrementally possible to develop through software and so forth. It's not only about production. We have a couple of contracts on the T-7, the Lot 3 and Lot 4 of the T-7, which increase the backlog, of course, but we still have a burden of not having the production ramping up quickly enough. The growth in aeronautics is, of course, much from the Gripen program, where we have lots of intensity and also deliveries ramping up. the growth in aeronautics is of course much from the gripen program where we have lots of intensity and also deliveries ramping up We had this fantastic event in Brazil now. we had this fantastic event in brazil now We have two factories that can actually deliver Gripen aircraft. we have two factories that can actually deliver gripen aircraft That will also, of course, be a good relationship increase between Brazil and Sweden when it comes to the further development of the Gripen E, which is the aircraft is incrementally possible to develop through software and so forth. that will also of course be a good relationship increase between brazil and sweden when it comes to the further development of the gripen e which is the aircraft is incrementally possible to develop through software and so forth It's not only about production. it's not only about production We have a couple of contracts on the T-7, the Lot 3 and Lot 4 of the T-7, which increase the backlog, of course, but we still have a burden of not having the production ramping up quickly enough. we have a couple of contracts on the t-7 the lot 3 and lot 4 of the t-7 which increase the backlog of course but we still have a burden of not having the production ramping up quickly enough As I've said before, this will take a couple of years before we actually get to the right numbers, but many hundreds of aircraft are in play for this. In the end, there will be probably a couple of thousand aircraft. This will be a good program, but it's a bit of a fight to get this fantastic facility delivering more aircraft out of the facility. They are delivering now, at least. Then, of course, we've launched a Gripen Colombian program, which is very important to us, which we did win then in December last year. Dynamics. Excellent demand in the market, 1.2 book-to-bill. There's a good order intake and good growth as well. The mix of ground combat orders and missile systems orders. As I've said before, this will take a couple of years before we actually get to the right numbers, but many hundreds of aircraft are in play for this. as i've said before this will take a couple of years before we actually get to the right numbers but many hundreds of aircraft are in play for this In the end, there will be probably a couple of thousand aircraft. in the end there will be probably a couple of thousand aircraft This will be a good program, but it's a bit of a fight to get this fantastic facility delivering more aircraft out of the facility. this will be a good program but it's a bit of a fight to get this fantastic facility delivering more aircraft out of the facility They are delivering now, at least. they are delivering now at least Then, of course, we've launched a Gripen Colombian program, which is very important to us, which we did win then in December last year. Dynamics. then of course we've launched a gripen colombian program which is very important to us which we did win then in december last year. dynamics Excellent demand in the market, 1.2 book-to-bill. excellent demand in the market 1.2 book-to-bill There's a good order intake and good growth as well. there's a good order intake and good growth as well The mix of ground combat orders and missile systems orders. the mix of ground combat orders and missile systems orders Remember, Dynamics is support weapons, it's missiles, it's training and simulation, it's also camouflage nets, signature management, which is a good mix of things. All the parts in Dynamics are doing really well. Deliveries are important. Here we have the production facilities, a couple of them in Sweden now up and running, in the Karlskoga area, which is really good to us. I must say that the profitability is of course excellent in the quarter as well, which Anna will go into more detail about later. Surveillance, very strong demand in the market across the whole portfolio. We have a pipeline of discussions on the GlobalEye with the different countries. I think that has potential going forward. Remember, Dynamics is support weapons, it's missiles, it's training and simulation, it's also camouflage nets, signature management, which is a good mix of things. remember dynamics is support weapons it's missiles it's training and simulation it's also camouflage nets signature management which is a good mix of things All the parts in Dynamics are doing really well. all the parts in dynamics are doing really well Deliveries are important. deliveries are important Here we have the production facilities, a couple of them in Sweden now up and running, in the Karlskoga area, which is really good to us. here we have the production facilities a couple of them in sweden now up and running in the karlskoga area which is really good to us I must say that the profitability is of course excellent in the quarter as well, which Anna will go into more detail about later. i must say that the profitability is of course excellent in the quarter as well which anna will go into more detail about later Surveillance, very strong demand in the market across the whole portfolio. surveillance very strong demand in the market across the whole portfolio We have a pipeline of discussions on the GlobalEye with the different countries. we have a pipeline of discussions on the globaleye with the different countries I think that has potential going forward. i think that has potential going forward Also, of course, the ramp up on the sensor side, and I want to highlight specifically the Giraffe 1X, where we talked about that we actually manufactured these sensor systems on a bit of speculation rather than only on contracts, and that's good for us, because we've been able to deliver a number of systems to the Middle East countries that needs to find and detect all the missiles and the drones coming in over their territory. That's good for us, and we will now aim for ramping up that production to over 300 a year. That's a good volume business on the sensor side. Then, of course, this counter-UAS system that Sweden contracted us with is a big initial contract, an important one. Also, of course, the ramp up on the sensor side, and I want to highlight specifically the Giraffe 1X, where we talked about that we actually manufactured these sensor systems on a bit of speculation rather than only on contracts, and that's good for us, because we've been able to deliver a number of systems to the Middle East countries that needs to find and detect all the missiles and the drones coming in over their territory. also of course the ramp up on the sensor side and i want to highlight specifically the giraffe 1x where we talked about that we actually manufactured these sensor systems on a bit of speculation rather than only on contracts and that's good for us because we've been able to deliver a number of systems to the middle east countries that needs to find and detect all the missiles and the drones coming in over their territory That's good for us, and we will now aim for ramping up that production to over 300 a year. that's good for us and we will now aim for ramping up that production to over 300 a year That's a good volume business on the sensor side. that's a good volume business on the sensor side Then, of course, this counter-UAS system that Sweden contracted us with is a big initial contract, an important one. then of course this counter-uas system that sweden contracted us with is a big initial contract an important one I think that area will develop into also not only being military applications, but also protecting critical infrastructure in the total defense perspective going forward. As you can see, the growth in Surveillance was excellent, over 30%. A couple of comments then. The counter-UAS system is a very modular system in terms of the vehicles, the sensors, the command and control, and also then agnostic when it comes to which actually effector do you use. It is a sensor to shooter system, which we put together in a very short time since we had the different products and components of it and integrated it to be operational extremely quickly. That is the key. We can do this with existing things that we have to provide things that will make a change in the deterrence and the defense very quickly. I think that area will develop into also not only being military applications, but also protecting critical infrastructure in the total defense perspective going forward. i think that area will develop into also not only being military applications but also protecting critical infrastructure in the total defense perspective going forward As you can see, the growth in Surveillance was excellent, over 30%. as you can see the growth in surveillance was excellent over 30% A couple of comments then. a couple of comments then The counter-UAS system is a very modular system in terms of the vehicles, the sensors, the command and control, and also then agnostic when it comes to which actually effector do you use. the counter-uas system is a very modular system in terms of the vehicles the sensors the command and control and also then agnostic when it comes to which actually effector do you use It is a sensor to shooter system, which we put together in a very short time since we had the different products and components of it and integrated it to be operational extremely quickly. it is a sensor to shooter system which we put together in a very short time since we had the different products and components of it and integrated it to be operational extremely quickly That is the key. that is the key We can do this with existing things that we have to provide things that will make a change in the deterrence and the defense very quickly. we can do this with existing things that we have to provide things that will make a change in the deterrence and the defense very quickly We continue then to adapt different type of effectors going forward. Either it's the 40 mm from Bofors, from BAE Bofors or whether it's the Trackfire with the 30 mm cannon or whether it will be the Nimbrix going forward. This is important to be flexible on the effector side, and it's proven very effective. When we come to Saab Kockums, which will be the last time I say Saab Kockums, because this now will be a new business area named Naval going forward. This is the last quarter we reported like this. They also had good growth and we are of course, in intensive discussions with Poland on the submarine program, and we hope to finalize that, of course, in the next quarter, but I can't promise exactly when. It's intensive discussions and according to plan. We continue then to adapt different type of effectors going forward. we continue then to adapt different type of effectors going forward Either it's the 40 mm from Bofors, from BAE Bofors or whether it's the Trackfire with the 30 mm cannon or whether it will be the Nimbrix going forward. either it's the 40 mm from bofors, from bae bofors or whether it's the trackfire with the 30 mm cannon or whether it will be the nimbrix going forward This is important to be flexible on the effector side, and it's proven very effective. this is important to be flexible on the effector side and it's proven very effective When we come to Saab Kockums, which will be the last time I say Saab Kockums, because this now will be a new business area named Naval going forward. when we come to saab kockums which will be the last time i say saab kockums because this now will be a new business area named naval going forward This is the last quarter we reported like this. this is the last quarter we reported like this They also had good growth and we are of course, in intensive discussions with Poland on the submarine program, and we hope to finalize that, of course, in the next quarter, but I can't promise exactly when. they also had good growth and we are of course in intensive discussions with poland on the submarine program and we hope to finalize that of course in the next quarter but i can't promise exactly when It's intensive discussions and according to plan. it's intensive discussions and according to plan Also on the Polish side, the next Sigyn ship was launched in January, a very important program to us, of course, and also good security politics collaboration thing between Sweden and Poland. Then we have now a more consolidated business area going forward, offering a combination of naval capabilities, and also being able to do the combat system integration between all the components in the same area and offering that in a different way, which I think will be very good for the business, going forward. Combitech is also doing really well. Good order momentum, and of course, it is the total defense perspective and how much we have to do in terms of creating better deterrence and processes in different parts of the Swedish society that drives growth, but also the military side and the contracts we get from the Defence Materiel Administration. Also on the Polish side, the next Sigyn ship was launched in January, a very important program to us, of course, and also good security politics collaboration thing between Sweden and Poland. also on the polish side the next sigyn ship was launched in january a very important program to us of course and also good security politics collaboration thing between sweden and poland Then we have now a more consolidated business area going forward, offering a combination of naval capabilities, and also being able to do the combat system integration between all the components in the same area and offering that in a different way, which I think will be very good for the business, going forward. then we have now a more consolidated business area going forward offering a combination of naval capabilities and also being able to do the combat system integration between all the components in the same area and offering that in a different way which i think will be very good for the business going forward Combitech is also doing really well. combitech is also doing really well Good order momentum, and of course, it is the total defense perspective and how much we have to do in terms of creating better deterrence and processes in different parts of the Swedish society that drives growth, but also the military side and the contracts we get from the Defence Materiel Administration. good order momentum and of course it is the total defense perspective and how much we have to do in terms of creating better deterrence and processes in different parts of the swedish society that drives growth but also the military side and the contracts we get from the defence materiel administration This is excellent performance, growth of 16% with good profitability. Of course, it's all about getting the competence and the skills in the organization growing, which has gone really well to grow this business. I'm really pleased with this. On the sustainability side, a couple of important things happened, of course, during the quarter as well. We have done now a compliance sustainability statement report in our year-end report, the annual report, I mean, for 2025. Completely in compliance with the requirements then, the CSRD requirements. That has all the details about the metrics, the targets, and what have you, if you want to dive into that. Then we've looked into a life cycle assessment when it comes to our Giraffe 1X, because okay, we can have control over the Scope 1 and 2, but Scope 3 is also very important, how you use the system. This is excellent performance, growth of 16% with good profitability. this is excellent performance growth of 16% with good profitability Of course, it's all about getting the competence and the skills in the organization growing, which has gone really well to grow this business. of course it's all about getting the competence and the skills in the organization growing which has gone really well to grow this business I'm really pleased with this. i'm really pleased with this On the sustainability side, a couple of important things happened, of course, during the quarter as well. on the sustainability side a couple of important things happened of course during the quarter as well We have done now a compliance sustainability statement report in our year-end report, the annual report, I mean, for 2025. we have done now a compliance sustainability statement report in our year-end report the annual report i mean for 2025 Completely in compliance with the requirements then, the CSRD requirements. completely in compliance with the requirements then the csrd requirements That has all the details about the metrics, the targets, and what have you, if you want to dive into that. that has all the details about the metrics the targets and what have you if you want to dive into that Then we've looked into a life cycle assessment when it comes to our Giraffe 1X, because okay, we can have control over the Scope 1 and 2, but Scope 3 is also very important, how you use the system. then we've looked into a life cycle assessment when it comes to our giraffe 1x because okay we can have control over the scope 1 and 2 but scope 3 is also very important how you use the system We have concluded, and we are in discussions with end users, that if they do go from supporting the system from a diesel sort of fuel perspective or going to electrical power or a biofuel type of setup, you would gain a lot when it comes to the emissions, of course. That is what we are pushing now. This system can be connected to any normal 220 volt outlet. It's really flexible in that side. We've done something that is prepared to do a big effect on sustainability if the end customers choose to use it that way. We have concluded, and we are in discussions with end users, that if they do go from supporting the system from a diesel sort of fuel perspective or going to electrical power or a biofuel type of setup, you would gain a lot when it comes to the emissions, of course. we have concluded and we are in discussions with end users that if they do go from supporting the system from a diesel sort of fuel perspective or going to electrical power or a biofuel type of setup you would gain a lot when it comes to the emissions of course That is what we are pushing now. that is what we are pushing now This system can be connected to any normal 220 volt outlet. this system can be connected to any normal 220 volt outlet It's really flexible in that side. it's really flexible in that side We've done something that is prepared to do a big effect on sustainability if the end customers choose to use it that way. we've done something that is prepared to do a big effect on sustainability if the end customers choose to use it that way Of course, we're looking into when we get volumes in a production, like in Dynamics, of course, how we use the packaging and how we reuse material for that and not wasting that adds lots of savings on the emissions, but also cost, of course, for us. We're changing that. If you look at the quarter sort of emission perspective, we have an increase due to more flight tests compared to the last quarter last year. We have more business travel also because of the intensity in the market, but it's also a period of cold temperatures. Looking at all the sites, of course, and a new site comes into play, you get a slightly higher footprint. We are on the right track towards our targets. Of course, we're looking into when we get volumes in a production, like in Dynamics, of course, how we use the packaging and how we reuse material for that and not wasting that adds lots of savings on the emissions, but also cost, of course, for us. of course we're looking into when we get volumes in a production like in dynamics of course how we use the packaging and how we reuse material for that and not wasting that adds lots of savings on the emissions but also cost of course for us We're changing that. we're changing that If you look at the quarter sort of emission perspective, we have an increase due to more flight tests compared to the last quarter last year. if you look at the quarter sort of emission perspective we have an increase due to more flight tests compared to the last quarter last year We have more business travel also because of the intensity in the market, but it's also a period of cold temperatures. we have more business travel also because of the intensity in the market but it's also a period of cold temperatures Looking at all the sites, of course, and a new site comes into play, you get a slightly higher footprint. looking at all the sites of course and a new site comes into play you get a slightly higher footprint We are on the right track towards our targets. we are on the right track towards our targets We are 36% down, when it comes to the reference year 2020, when it comes to emissions towards our targets. We're doing well on that side. With that, I will hand over to the details, and Anna will walk you through a little bit more of the financial results. We are 36% down, when it comes to the reference year 2020, when it comes to emissions towards our targets. we are 36% down when it comes to the reference year 2020 when it comes to emissions towards our targets We're doing well on that side. we're doing well on that side With that, I will hand over to the details, and Anna will walk you through a little bit more of the financial results. with that i will hand over to the details and anna will walk you through a little bit more of the financial results

Speaker 2: Thank you, Micael, and good morning from my side as well. It is clear that we have started the year with a strong first quarter, and I will soon go into the details of the financials. Before doing that, I think it's good to look at some trend and what we have achieved so far. Over the recent years, we have achieved strong sales growth, and that is supported by our leading offering and the trust from our customers. Consistent with a profitable growth strategy, we have scaled our operations, we have expanded our capacity, and we have continued to deliver on our customer commitments. On top of this, we also have a healthy backlog, and we are continuously working on efficiency, which will support our performance going forward. Thank you, Micael, and good morning from my side as well. thank you micael and good morning from my side as well It is clear that we have started the year with a strong first quarter, and I will soon go into the details of the financials. it is clear that we have started the year with a strong first quarter and i will soon go into the details of the financials Before doing that, I think it's good to look at some trend and what we have achieved so far. before doing that i think it's good to look at some trend and what we have achieved so far Over the recent years, we have achieved strong sales growth, and that is supported by our leading offering and the trust from our customers. over the recent years we have achieved strong sales growth and that is supported by our leading offering and the trust from our customers Consistent with a profitable growth strategy, we have scaled our operations, we have expanded our capacity, and we have continued to deliver on our customer commitments. consistent with a profitable growth strategy we have scaled our operations we have expanded our capacity and we have continued to deliver on our customer commitments On top of this, we also have a healthy backlog, and we are continuously working on efficiency, which will support our performance going forward. on top of this we also have a healthy backlog and we are continuously working on efficiency which will support our performance going forward Looking at how the trend has developed after this first quarter, 2026, we have now delivered an organic sales CAGR of 24% so far in our medium-term target period. Importantly to note here is that we have had double-digit sales growth in all our business areas. We have also continued to deliver profitable growth, and that has shown that we are driving our operating cost leverage, and our EBIT growth is more than our sales growth. It's now 33% for these periods. To note here, it's also important to say that we have increased our spendings in R&D to be able to be relevant to have future capabilities in our portfolio. With that, we are progressing well towards our medium-term targets. With that then, now let's take a closer look at the quarter. Looking at how the trend has developed after this first quarter, 2026, we have now delivered an organic sales CAGR of 24% so far in our medium-term target period. looking at how the trend has developed after this first quarter 2026 we have now delivered an organic sales cagr of 24% so far in our medium-term target period Importantly to note here is that we have had double-digit sales growth in all our business areas. importantly to note here is that we have had double-digit sales growth in all our business areas We have also continued to deliver profitable growth, and that has shown that we are driving our operating cost leverage, and our EBIT growth is more than our sales growth. we have also continued to deliver profitable growth and that has shown that we are driving our operating cost leverage and our ebit growth is more than our sales growth It's now 33% for these periods. it's now 33% for these periods To note here, it's also important to say that we have increased our spendings in R&D to be able to be relevant to have future capabilities in our portfolio. to note here it's also important to say that we have increased our spendings in r&d to be able to be relevant to have future capabilities in our portfolio With that, we are progressing well towards our medium-term targets. with that we are progressing well towards our medium-term targets With that then, now let's take a closer look at the quarter. with that then now let's take a closer look at the quarter The EBIT increased by 32%, largely driven by the sales growth and leverage on operating expenses. We can see that marketing expenses are flat compared to last year, and the administrative expenses are slightly lower. We continue to ramp up the R&D efforts as planned. All in all, we have an operating margin of 10% compared to 9.2% last year. Aeronautics. Here we had good sales growth of around 15%. However, we can see that the margins decline, and that is due to somewhat increased R&D amortization, and we also have a negative currency effect impacting. Also, as Micael said, the T-7 program has still challenges with profitability and ramp up, but we have good order intake here in the quarter. That is impacting the EBIT margin negative in Aeronautics. In Dynamics, we continue to expand capacity and to deliver on our backlog. The EBIT increased by 32%, largely driven by the sales growth and leverage on operating expenses. the ebit increased by 32% largely driven by the sales growth and leverage on operating expenses We can see that marketing expenses are flat compared to last year, and the administrative expenses are slightly lower. we can see that marketing expenses are flat compared to last year and the administrative expenses are slightly lower We continue to ramp up the R&D efforts as planned. we continue to ramp up the r&d efforts as planned All in all, we have an operating margin of 10% compared to 9.2% last year. all in all we have an operating margin of 10% compared to 9.2% last year Aeronautics. aeronautics Here we had good sales growth of around 15%. here we had good sales growth of around 15% However, we can see that the margins decline, and that is due to somewhat increased R&D amortization, and we also have a negative currency effect impacting. however we can see that the margins decline and that is due to somewhat increased r&d amortization and we also have a negative currency effect impacting Also, as Micael said, the T-7 program has still challenges with profitability and ramp up, but we have good order intake here in the quarter. also as micael said the t-7 program has still challenges with profitability and ramp up but we have good order intake here in the quarter That is impacting the EBIT margin negative in Aeronautics. that is impacting the ebit margin negative in aeronautics In Dynamics, we continue to expand capacity and to deliver on our backlog. in dynamics we continue to expand capacity and to deliver on our backlog We have a favorable mix this quarter together with the sales growth. That drives the EBIT growth to 38% growth this quarter and an EBIT margin of 17.5%. As always, when we talk about Dynamics, it's important to remember that the EBIT margin varies between the quarter, depending on mix and what deliveries we have. Surveillance also had a very strong quarter with good progress across all business. One good example of that, and where we had particularly good performance, was in the surface sensor area with several deliveries. Overall sales grow by 32% and the EBIT grow 52%, and that is driven by the mix and also the leverage in operating costs. Kockums also growing, but here we can see an impact of the high activities that we have in the marketing area with the campaigns ongoing, for instance, in Poland. We have a favorable mix this quarter together with the sales growth. we have a favorable mix this quarter together with the sales growth That drives the EBIT growth to 38% growth this quarter and an EBIT margin of 17.5%. that drives the ebit growth to 38% growth this quarter and an ebit margin of 17.5% As always, when we talk about Dynamics, it's important to remember that the EBIT margin varies between the quarter, depending on mix and what deliveries we have. as always when we talk about dynamics it's important to remember that the ebit margin varies between the quarter depending on mix and what deliveries we have Surveillance also had a very strong quarter with good progress across all business. surveillance also had a very strong quarter with good progress across all business One good example of that, and where we had particularly good performance, was in the surface sensor area with several deliveries. one good example of that and where we had particularly good performance was in the surface sensor area with several deliveries Overall sales grow by 32% and the EBIT grow 52%, and that is driven by the mix and also the leverage in operating costs. overall sales grow by 32% and the ebit grow 52% and that is driven by the mix and also the leverage in operating costs Kockums also growing, but here we can see an impact of the high activities that we have in the marketing area with the campaigns ongoing, for instance, in Poland. kockums also growing but here we can see an impact of the high activities that we have in the marketing area with the campaigns ongoing for instance in poland Here the marketing cost has increased compared year-over-year. That is why we have a small decline in the EBIT this quarter. Not visible here in the slide, but worth mentioning, is also Combitech, that has also a good development and high activity through their increased number of consultants. They have an operating margin of 11.3% this quarter. Also within corporate, we have improvements compared to last year in our small Skeldar business and also in our minority portfolio, which improves the margin in corporate. As you already know, we have established a new business area from April 1st, the business area Naval. The purpose is to consolidate and to strengthen our total naval offerings to deliver greater value to our customers. Here the marketing cost has increased compared year-over-year. here the marketing cost has increased compared year-over-year That is why we have a small decline in the EBIT this quarter. Not visible here in the slide, but worth mentioning, is also Combitech, that has also a good development and high activity through their increased number of consultants. that is why we have a small decline in the ebit this quarter. not visible here in the slide but worth mentioning is also combitech that has also a good development and high activity through their increased number of consultants They have an operating margin of 11.3% this quarter. they have an operating margin of 11.3% this quarter Also within corporate, we have improvements compared to last year in our small Skeldar business and also in our minority portfolio, which improves the margin in corporate. also within corporate we have improvements compared to last year in our small skeldar business and also in our minority portfolio which improves the margin in corporate As you already know, we have established a new business area from April 1st , the business area Naval. as you already know we have established a new business area from april 1st the business area naval The purpose is to consolidate and to strengthen our total naval offerings to deliver greater value to our customers. the purpose is to consolidate and to strengthen our total naval offerings to deliver greater value to our customers From the second quarter, Q2, we will report financially in this new structure and you find more details on our website, and you can also find the restated financials to facilitate your comparison. The key change is that we have moved or transferred the business unit, Naval Combat Systems, from Surveillance into this business area Naval. It's largely a system integration business driven by projects, and historically they have had around SEK 6 billion per year in sales. Since 2024, they have, on average, had an operating margin of 6%. When you look into the details, you will notice that there are two quarters in 2025 with significantly lower margins in this business unit. From the second quarter, Q2, we will report financially in this new structure and you find more details on our website, and you can also find the restated financials to facilitate your comparison. from the second quarter q2 we will report financially in this new structure and you find more details on our website and you can also find the restated financials to facilitate your comparison The key change is that we have moved or transferred the business unit, Naval Combat Systems, from Surveillance into this business area Naval. the key change is that we have moved or transferred the business unit naval combat systems from surveillance into this business area naval It's largely a system integration business driven by projects, and historically they have had around SEK 6 billion per year in sales. it's largely a system integration business driven by projects and historically they have had around sek 6 billion per year in sales Since 2024, they have, on average, had an operating margin of 6%. since 2024 they have on average had an operating margin of 6% When you look into the details, you will notice that there are two quarters in 2025 with significantly lower margins in this business unit. when you look into the details you will notice that there are two quarters in 2025 with significantly lower margins in this business unit This is due to the nature of this business, where we have this project mix depending on how the margins is every quarter, and also that we had some margin adjustments in a few projects within Naval Combat Systems. Looking ahead, this is a business with future growth, and we see potential for profitability over time. More details are shown in our homepage. Next slide is the income statement for the quarter. The organic growth was 23.6%, reported was 21.4%. Same here this quarter as last quarter, the currency impacting us negatively with 2 percentage points on the sales growth. Gross income is increasing, but margin is flat, and that is due to mix. If you look at the business areas, we can see that they are improving year-over-year in gross margin. This is due to the nature of this business, where we have this project mix depending on how the margins is every quarter, and also that we had some margin adjustments in a few projects within Naval Combat Systems. this is due to the nature of this business where we have this project mix depending on how the margins is every quarter and also that we had some margin adjustments in a few projects within naval combat systems Looking ahead, this is a business with future growth, and we see potential for profitability over time. looking ahead this is a business with future growth and we see potential for profitability over time More details are shown in our homepage. more details are shown in our homepage Next slide is the income statement for the quarter. next slide is the income statement for the quarter The organic growth was 23.6%, reported was 21.4%. the organic growth was 23.6% reported was 21.4% Same here this quarter as last quarter, the currency impacting us negatively with 2 percentage points on the sales growth. same here this quarter as last quarter the currency impacting us negatively with 2 percentage points on the sales growth Gross income is increasing, but margin is flat, and that is due to mix. gross income is increasing but margin is flat and that is due to mix If you look at the business areas, we can see that they are improving year-over-year in gross margin. if you look at the business areas we can see that they are improving year-over-year in gross margin I talked about the EBIT that has improved, but let's then turn to the financial net. Here we have a difference since last year because we are now increasing the application of hedge accounting to also include derivatives that hedge currency in the tender portfolio. From now on, you will see currency gains and losses from the tender portfolio in the other comprehensive income and not in the financial net. With that, we will have less fluctuation in the financial net going forward. Important to note here is that we have not changed our hedging principles. It's just that we have changed the application of how we use hedge accounting. Finally, we have growth in our EPS driven by the EBIT growth, and also the net income is growing this quarter. Turning to cash flow. We had a strong cash flow from operation of SEK 2.8 billion this quarter. I talked about the EBIT that has improved, but let's then turn to the financial net. i talked about the ebit that has improved but let's then turn to the financial net Here we have a difference since last year because we are now increasing the application of hedge accounting to also include derivatives that hedge currency in the tender portfolio. here we have a difference since last year because we are now increasing the application of hedge accounting to also include derivatives that hedge currency in the tender portfolio From now on, you will see currency gains and losses from the tender portfolio in the other comprehensive income and not in the financial net. from now on you will see currency gains and losses from the tender portfolio in the other comprehensive income and not in the financial net With that, we will have less fluctuation in the financial net going forward. with that we will have less fluctuation in the financial net going forward Important to note here is that we have not changed our hedging principles. important to note here is that we have not changed our hedging principles It's just that we have changed the application of how we use hedge accounting. it's just that we have changed the application of how we use hedge accounting Finally, we have growth in our EPS driven by the EBIT growth, and also the net income is growing this quarter. finally we have growth in our eps driven by the ebit growth and also the net income is growing this quarter Turning to cash flow. turning to cash flow We had a strong cash flow from operation of SEK 2.8 billion this quarter. we had a strong cash flow from operation of sek 2.8 billion this quarter Main contribution came from Surveillance and Dynamics, and the largest reason for that is the several customer payments, but a bit offset by inventory build-up, and that is also what's impacting the change in working capital. The investments increased compared to last year, which is totally according to our plan, and they were up from SEK 1.6 billion-SEK 2 billion this year. We now have an operational cash flow of SEK 1 billion after this quarter. The free cash flow is impacted by higher tax. We have higher supplementary tax related to income taxes paid for 2025. That's the main reason why that is negative SEK 1.3 billion and the free cash flow slightly negative or minus SEK 300 million. All in all, we have an improvement also in return on capital employed, driven by our improved profitability, but also on our improved capital turnover, so it's now above 16%. Main contribution came from Surveillance and Dynamics, and the largest reason for that is the several customer payments, but a bit offset by inventory build-up, and that is also what's impacting the change in working capital. main contribution came from surveillance and dynamics and the largest reason for that is the several customer payments but a bit offset by inventory build-up and that is also what's impacting the change in working capital The investments increased compared to last year, which is totally according to our plan, and they were up from SEK 1.6 billion -SEK 2 billion this year. the investments increased compared to last year which is totally according to our plan and they were up from sek 1.6 billion -sek 2 billion this year We now have an operational cash flow of SEK 1 billion after this quarter. we now have an operational cash flow of sek 1 billion after this quarter The free cash flow is impacted by higher tax. the free cash flow is impacted by higher tax We have higher supplementary tax related to income taxes paid for 2025. we have higher supplementary tax related to income taxes paid for 2025 That's the main reason why that is negative SEK 1.3 billion and the free cash flow slightly negative or minus SEK 300 million. that's the main reason why that is negative sek 1.3 billion and the free cash flow slightly negative or minus sek 300 million All in all, we have an improvement also in return on capital employed, driven by our improved profitability, but also on our improved capital turnover, so it's now above 16%. all in all we have an improvement also in return on capital employed driven by our improved profitability but also on our improved capital turnover so it's now above 16% The cash conversion is 53% after this quarter. Progressing well towards our medium-term target to have a cash conversion above 60%. The net liquidity position and balance sheet is still strong. We have a net liquidity of SEK 4 billion, almost unchanged since last quarter. Cash and liquid investments amounted to SEK 18.1 billion, and in addition, we have an unutilized revolving credit facility of SEK 6 billion. Let's turn to the future and our order backlog. Over time, we have built a solid order backlog, which is currently SEK 274 billion. The cash conversion is 53% after this quarter. the cash conversion is 53% after this quarter Progressing well towards our medium-term target to have a cash conversion above 60%. progressing well towards our medium-term target to have a cash conversion above 60% The net liquidity position and balance sheet is still strong. the net liquidity position and balance sheet is still strong We have a net liquidity of SEK 4 billion, almost unchanged since last quarter. we have a net liquidity of sek 4 billion almost unchanged since last quarter Cash and liquid investments amounted to SEK 18.1 billion, and in addition, we have an unutilized revolving credit facility of SEK 6 billion. cash and liquid investments amounted to sek 18.1 billion and in addition we have an unutilized revolving credit facility of sek 6 billion Let's turn to the future and our order backlog. let's turn to the future and our order backlog Over time, we have built a solid order backlog, which is currently SEK 274 billion. over time we have built a solid order backlog which is currently sek 274 billion This, of course, position us for a good position for long-term growth. Compared to last year, we are in a better position and have strengthened the backlog for all years ahead. In particular, for the remaining nine months here, the backlog has increased 28% compared to where we were last year. For next year, it has increased by 56% compared to last year. Also, to note in the backlog is that we have a good balance between our business areas. Aeronautics has now increased their shares, so they are around 30%, and then it's Dynamics and Surveillance, which adds up to most of the backlog. The international orders is around 72% of this backlog. All in all, this underpins a good position to support for future growth going forward. Then finally, before ending my presentation, let's just remind us about our medium-term target. This, of course, position us for a good position for long-term growth. this of course position us for a good position for long-term growth Compared to last year, we are in a better position and have strengthened the backlog for all years ahead. compared to last year we are in a better position and have strengthened the backlog for all years ahead In particular, for the remaining nine months here, the backlog has increased 28% compared to where we were last year. in particular for the remaining nine months here the backlog has increased 28% compared to where we were last year For next year, it has increased by 56% compared to last year. for next year it has increased by 56% compared to last year Also, to note in the backlog is that we have a good balance between our business areas. also to note in the backlog is that we have a good balance between our business areas Aeronautics has now increased their shares, so they are around 30%, and then it's Dynamics and Surveillance, which adds up to most of the backlog. aeronautics has now increased their shares so they are around 30% and then it's dynamics and surveillance which adds up to most of the backlog The international orders is around 72% of this backlog. the international orders is around 72% of this backlog All in all, this underpins a good position to support for future growth going forward. all in all this underpins a good position to support for future growth going forward Then finally, before ending my presentation, let's just remind us about our medium-term target. then finally before ending my presentation let's just remind us about our medium-term target We are going to deliver around 22% sales CAGR for the period 2023 to 2027. We will have an EBIT growth that is higher than organic sales growth and a cash conversion of more than 60% during this period. Thank you very much. With that, I hand over to you, Johan, to open up the Q&A. We are going to deliver around 22% sales CAGR for the period 2023 to 2027. we are going to deliver around 22% sales cagr for the period 2023 to 2027 We will have an EBIT growth that is higher than organic sales growth and a cash conversion of more than 60% during this period. we will have an ebit growth that is higher than organic sales growth and a cash conversion of more than 60% during this period Thank you very much. thank you very much With that, I hand over to you, Johan, to open up the Q&A. with that i hand over to you johan to open up the q&a

Speaker 6: Thank you very much, Anna and Micael. Let's open up and start the Q&A session. Please, operator, do we have any questions over the telephone conference? Thank you very much, Anna and Micael . thank you very much anna and micael Let's open up and start the Q&A session. let's open up and start the q&a session Please, operator, do we have any questions over the telephone conference? please operator do we have any questions over the telephone conference

Speaker 9: Anyone who wishes to ask a question from the phone may press star and one at this time. The first question comes from the line of Yassin Moktadir, UBS. Please go ahead. Anyone who wishes to ask a question from the phone may press star and one at this time. anyone who wishes to ask a question from the phone may press star and one at this time The first question comes from the line of Yassin Moktadir, UBS. the first question comes from the line of yassin moktadir ubs Please go ahead. please go ahead

Speaker 11: Hi. Thank you for taking my question. Firstly, could I start with Aeronautics? You cited several ongoing Gripen campaigns. Could you talk us through those and your confidence around winning potential orders there? Then within Surveillance on GlobalEye, you also mentioned some discussions that you're having, and we've been seeing increasing press releases or articles around the E-3 replacement. Is there any further developments there, too? Thank you very much. Hi. hi Thank you for taking my question. thank you for taking my question Firstly, could I start with Aeronautics? firstly could i start with aeronautics You cited several ongoing Gripen campaigns. you cited several ongoing gripen campaigns Could you talk us through those and your confidence around winning potential orders there? could you talk us through those and your confidence around winning potential orders there Then within Surveillance on GlobalEye, you also mentioned some discussions that you're having, and we've been seeing increasing press releases or articles around the E-3 replacement. then within surveillance on globaleye you also mentioned some discussions that you're having and we've been seeing increasing press releases or articles around the e-3 replacement Is there any further developments there, too? is there any further developments there too Thank you very much. thank you very much

Speaker 8: Okay. Thank you for that question. On the Gripen side, of course, I mentioned we're still in discussions with Canada, which is, of course, about decision on sovereignty and the Canadian industry and how we would do a tech transfer and setting up a hub and all that. It would also mean a potential contract with Canada. Hard to say exactly when that sort of decision will be taken. It's an evaluation ongoing, as you know, and it's probably on prime minister level to go either way. It's hard to predict, but it's intensive. We have discussions all the time with them. Of course, since we had President Zelensky in Sweden, last year, agreeing with Ulf Kristersson that they will go for the Gripen. We are in discussions with Ukraine to move that forward. Those are two potential big ones, of course. Okay. okay Thank you for that question. thank you for that question On the Gripen side, of course, I mentioned we're still in discussions with Canada, which is, of course, about decision on sovereignty and the Canadian industry and how we would do a tech transfer and setting up a hub and all that. on the gripen side of course i mentioned we're still in discussions with canada which is of course about decision on sovereignty and the canadian industry and how we would do a tech transfer and setting up a hub and all that It would also mean a potential contract with Canada. it would also mean a potential contract with canada Hard to say exactly when that sort of decision will be taken. hard to say exactly when that sort of decision will be taken It's an evaluation ongoing, as you know, and it's probably on prime minister level to go either way. it's an evaluation ongoing as you know and it's probably on prime minister level to go either way It's hard to predict, but it's intensive. it's hard to predict but it's intensive We have discussions all the time with them. we have discussions all the time with them Of course, since we had President Zelensky in Sweden, last year, agreeing with Ulf Kristersson that they will go for the Gripen. of course since we had president zelensky in sweden last year agreeing with ulf kristersson that they will go for the gripen We are in discussions with Ukraine to move that forward. we are in discussions with ukraine to move that forward Those are two potential big ones, of course. those are two potential big ones of course To say exactly confidence level and exactly when that can happen is difficult, of course. It's always political, but we're moving ahead on those two. There is an interest from Portugal, and some other sort of earlier campaigns. There is an interest. We have a ramp-up of capacity ongoing. We're going to deliver more aircraft, many more, to both Sweden and Brazil and then Colombia and Thailand. Lots of intensity in that area. On the GlobalEye side, you know that France contracted us last year. There is an option for another two in that contract that we're discussing. Of course, we have given information to NATO, connected to the AFSC program. Let's see what happens there. That's an opportunity, of course. There is an interest from Germany, from Poland. There's a pipeline of opportunities in different stages, of course. To say exactly confidence level and exactly when that can happen is difficult, of course. to say exactly confidence level and exactly when that can happen is difficult of course It's always political, but we're moving ahead on those two. it's always political but we're moving ahead on those two There is an interest from Portugal, and some other sort of earlier campaigns. there is an interest from portugal and some other sort of earlier campaigns There is an interest. there is an interest We have a ramp-up of capacity ongoing. we have a ramp-up of capacity ongoing We're going to deliver more aircraft, many more, to both Sweden and Brazil and then Colombia and Thailand. we're going to deliver more aircraft many more to both sweden and brazil and then colombia and thailand Lots of intensity in that area. lots of intensity in that area On the GlobalEye side, you know that France contracted us last year. on the globaleye side you know that france contracted us last year There is an option for another two in that contract that we're discussing. there is an option for another two in that contract that we're discussing Of course, we have given information to NATO, connected to the AFSC program. of course we have given information to nato connected to the afsc program Let's see what happens there. let's see what happens there That's an opportunity, of course. that's an opportunity of course There is an interest from Germany, from Poland. there is an interest from germany from poland There's a pipeline of opportunities in different stages, of course. there's a pipeline of opportunities in different stages of course I would say it's a big interest for both platforms, right now. I would say it's a big interest for both platforms, right now. i would say it's a big interest for both platforms right now

Speaker 6: Thank you, Yassin. Please, operator, do we have the next question? Thank you, Yassin. thank you yassin Please, operator, do we have the next question? please operator do we have the next question

Speaker 9: The next question comes from the line of Björn Enarson, Danske Bank. Please go ahead. The next question comes from the line of Björn Enarson, Danske Bank. the next question comes from the line of björn enarson danske bank Please go ahead. please go ahead

Speaker 3: Thank you. Can you hear me? Thank you. thank you Can you hear me? can you hear me

Speaker 6: Yeah, absolutely. Yeah, absolutely. yeah absolutely

Speaker 8: Loud and clear. Loud and clear. loud and clear

Speaker 3: Yeah, good. Sorry for this. First of all, you touched upon the corporate and other items there. You have a solid result overall, but I'd like to argue that a quite big deviation was within the corporate. Can you talk a little bit about that and how we should think about that going forward? Also, Dynamics had a good quarter in terms of deliveries, obviously good for profitability. Can you talk a little bit about how the profile for Dynamics looks, for the year? Thank you. Yeah, good. yeah good Sorry for this. sorry for this First of all, you touched upon the corporate and other items there. first of all you touched upon the corporate and other items there You have a solid result overall, but I'd like to argue that a quite big deviation was within the corporate. you have a solid result overall but i'd like to argue that a quite big deviation was within the corporate Can you talk a little bit about that and how we should think about that going forward? can you talk a little bit about that and how we should think about that going forward Also, Dynamics had a good quarter in terms of deliveries, obviously good for profitability. also dynamics had a good quarter in terms of deliveries obviously good for profitability Can you talk a little bit about how the profile for Dynamics looks, for the year? can you talk a little bit about how the profile for dynamics looks for the year Thank you. thank you

Speaker 2: Do you want me to start with the corporate question? Do you want me to start with the corporate question? do you want me to start with the corporate question

Speaker 3: Please. Please. please

Speaker 2: Yep. In corporate, we have different costs that can vary between quarters. We have some periodization impacts. Cost that comes here could also be shareholding program, which of course nothing that we can predict where the share price is going. Cost for IT and security, this has more coming up later during the year that we had last year. I think when you look into the corporate, a good rule of thumb could be to look at the level where we were last year. Yep. yep In corporate, we have different costs that can vary between quarters. in corporate we have different costs that can vary between quarters We have some periodization impacts. we have some periodization impacts Cost that comes here could also be shareholding program, which of course nothing that we can predict where the share price is going. cost that comes here could also be shareholding program which of course nothing that we can predict where the share price is going Cost for IT and security, this has more coming up later during the year that we had last year. cost for it and security this has more coming up later during the year that we had last year I think when you look into the corporate, a good rule of thumb could be to look at the level where we were last year. i think when you look into the corporate a good rule of thumb could be to look at the level where we were last year

Speaker 8: For the full year? For the full year? for the full year

Speaker 2: For the full year. Yes. For the full year. for the full year Yes. yes

Speaker 8: Okay. On the Dynamics side, they have a huge backlog, of course. It's a good sign that they have now good deliveries and investment, as I said, in capacity is coming into play, which is really important to us. There's a good foundation for deliveries going forward. I've said before that they will grow, but we'll not guide on that level, so to say, on the business area level, and we've said that mid-double digit numbers is still depending on the mix of things within Dynamics, which contracts, the mix of missiles, support weapons, training, and signal to management. That defines a couple of percentage up and down in each quarter, so to say. We had a good mix this quarter, but they should be really profitable, which they are. That's as much as I can say. Better and better foundation for deliveries though, on volume side. Okay. okay On the Dynamics side, they have a huge backlog, of course. on the dynamics side they have a huge backlog of course It's a good sign that they have now good deliveries and investment, as I said, in capacity is coming into play, which is really important to us. it's a good sign that they have now good deliveries and investment as i said in capacity is coming into play which is really important to us There's a good foundation for deliveries going forward. there's a good foundation for deliveries going forward I've said before that they will grow, but we'll not guide on that level, so to say, on the business area level, and we've said that mid-double digit numbers is still depending on the mix of things within Dynamics, which contracts, the mix of missiles, support weapons, training, and signal to management. i've said before that they will grow but we'll not guide on that level so to say on the business area level and we've said that mid-double digit numbers is still depending on the mix of things within dynamics which contracts the mix of missiles support weapons training and signal to management That defines a couple of percentage up and down in each quarter, so to say. that defines a couple of percentage up and down in each quarter so to say We had a good mix this quarter, but they should be really profitable, which they are. we had a good mix this quarter but they should be really profitable which they are That's as much as I can say. that's as much as i can say Better and better foundation for deliveries though, on volume side. better and better foundation for deliveries though on volume side

Speaker 3: Thank you. One last question. On the order that you touched upon received in early April, C-UAS. Super interesting. Can you talk a little bit about the market potential, number of units or countries or anything? You touched upon that it has a good export potential. Thank you. thank you One last question. one last question On the order that you touched upon received in early April, C-UAS. on the order that you touched upon received in early april c-uas Super interesting. super interesting Can you talk a little bit about the market potential, number of units or countries or anything? can you talk a little bit about the market potential number of units or countries or anything You touched upon that it has a good export potential. you touched upon that it has a good export potential

Speaker 8: Yeah. I think counter-UAS, if you're having efficient and cost-efficient systems, especially on the effective side, and that you can actually be a bit agile when it comes to which one you use, you will have a good market opportunity. Everyone is asking for this kind of system. I think there will be good potential. I don't want to go into numbers, but it's of course an export potential, but also in the total defense perspective, you have to have systems protecting critical infrastructure. That is more of a governance problem, I would say, because it's not that the defense forces can't protect every critical infrastructure in a country, it's more about how the country is structured. Yeah. yeah I think counter-UAS, if you're having efficient and cost-efficient systems, especially on the effective side, and that you can actually be a bit agile when it comes to which one you use, you will have a good market opportunity. i think counter-uas if you're having efficient and cost-efficient systems especially on the effective side and that you can actually be a bit agile when it comes to which one you use you will have a good market opportunity Everyone is asking for this kind of system. everyone is asking for this kind of system I think there will be good potential. i think there will be good potential I don't want to go into numbers, but it's of course an export potential, but also in the total defense perspective, you have to have systems protecting critical infrastructure. i don't want to go into numbers but it's of course an export potential but also in the total defense perspective you have to have systems protecting critical infrastructure That is more of a governance problem, I would say, because it's not that the defense forces can't protect every critical infrastructure in a country, it's more about how the country is structured. that is more of a governance problem i would say because it's not that the defense forces can't protect every critical infrastructure in a country it's more about how the country is structured There will be quickish, I would say, more expedited contracts in certain countries doing that, and it will be a bit slower because of regulations in other countries, but extremely good potential on their system. We have a very cost-efficient sensor, an excellent command and control, a low footprint, and now we have in different versions of effectors and I look forward to when Nimbrix come into play because that will be an important, reasonably long range capability, with good cost levels. There's more to do here and good potential, absolutely. There will be quickish, I would say, more expedited contracts in certain countries doing that, and it will be a bit slower because of regulations in other countries, but extremely good potential on their system. there will be quickish i would say more expedited contracts in certain countries doing that and it will be a bit slower because of regulations in other countries but extremely good potential on their system We have a very cost-efficient sensor, an excellent command and control, a low footprint, and now we have in different versions of effectors and I look forward to when Nimbrix come into play because that will be an important, reasonably long range capability, with good cost levels. we have a very cost-efficient sensor an excellent command and control a low footprint and now we have in different versions of effectors and i look forward to when nimbrix come into play because that will be an important reasonably long range capability with good cost levels There's more to do here and good potential, absolutely. there's more to do here and good potential absolutely

Speaker 6: Thank you very much, Björn. Thank you very much , Björn . thank you very much björn

Speaker 3: Anything public on web? Anything public on web? anything public on web Yeah. Thank you. Yeah. yeah Thank you. thank you

Speaker 6: Sorry. Go ahead, if you had a. Sorry. sorry Go ahead, if you had a. go ahead if you had a

Speaker 3: No, it was just a quick one on when, if on the public statements on when this is going to be operational in Sweden. No, it was just a quick one on when, if on the public statements on when this is going to be operational in Sweden. no it was just a quick one on when if on the public statements on when this is going to be operational in sweden

Speaker 8: Uh- Uh- uh-

Speaker 3: Quick ramp up or is it? Quick ramp up or is it? quick ramp up or is it

Speaker 8: Yeah, a version of it is already operational from the Air Force perspective. The deliveries on this one will be in the next year timeframe, roughly. Yeah, a version of it is already operational from the Air Force perspective. yeah a version of it is already operational from the air force perspective The deliveries on this one will be in the next year timeframe, roughly. the deliveries on this one will be in the next year timeframe roughly

Speaker 3: Thank you. Thank you. thank you

Speaker 6: Thank you very much, Björn. Let's take two questions from the web interface here. One was, from an order intake and growth side, do you see any challenges in the market? Anything that hampers you when you look at market demand? Thank you very much, Björn. thank you very much björn Let's take two questions from the web interface here. let's take two questions from the web interface here One was, from an order intake and growth side, do you see any challenges in the market? one was from an order intake and growth side do you see any challenges in the market Anything that hampers you when you look at market demand? anything that hampers you when you look at market demand

Speaker 8: I would say no, not really. I see the demand is still high there, and it's a bit of different investment paces or speed in different countries depending on where you are. I think the region where we are in, Germany, Poland, Baltic states, Nordics, U.K., is moving a bit quicker maybe than other countries, but still good demand in the broader perspective. What is really important, of course, is again, as I've said many times, you have to work diligently with your supply chain. At depth, not only the tier ones. You have to look into, okay, how resilient are you in the depth of the supply chain? When you come down to component level, material level, how do you make sure you have this in stock or they have it in stock to be able to deliver? I would say no, not really. i would say no not really I see the demand is still high there, and it's a bit of different investment paces or speed in different countries depending on where you are. i see the demand is still high there and it's a bit of different investment paces or speed in different countries depending on where you are I think the region where we are in, Germany, Poland, Baltic states, Nordics, U.K., is moving a bit quicker maybe than other countries, but still good demand in the broader perspective. i think the region where we are in germany poland baltic states nordics u.k is moving a bit quicker maybe than other countries but still good demand in the broader perspective What is really important, of course, is again, as I've said many times, you have to work diligently with your supply chain. what is really important of course is again as i've said many times you have to work diligently with your supply chain At depth, not only the tier ones. at depth not only the tier ones You have to look into, okay, how resilient are you in the depth of the supply chain? you have to look into okay how resilient are you in the depth of the supply chain When you come down to component level, material level, how do you make sure you have this in stock or they have it in stock to be able to deliver? when you come down to component level material level how do you make sure you have this in stock or they have it in stock to be able to deliver This is something we work really diligently upon to make sure that we have protection. It's not here and now really because we have quite a lot in inventory, in stock. Over time, we have to create more resilience. That's the same thing for all the defense industries and broader than that actually, when it comes to dependency on China, when it comes to raw material and looking at the data sensors and the memory components that now are in huge demand to build up these things, of course, that makes it important to be on your toes and secure deliveries early. This is something we work really diligently upon to make sure that we have protection. this is something we work really diligently upon to make sure that we have protection It's not here and now really because we have quite a lot in inventory, in stock. it's not here and now really because we have quite a lot in inventory in stock Over time, we have to create more resilience. over time we have to create more resilience That's the same thing for all the defense industries and broader than that actually, when it comes to dependency on China, when it comes to raw material and looking at the data sensors and the memory components that now are in huge demand to build up these things, of course, that makes it important to be on your toes and secure deliveries early. that's the same thing for all the defense industries and broader than that actually when it comes to dependency on china when it comes to raw material and looking at the data sensors and the memory components that now are in huge demand to build up these things of course that makes it important to be on your toes and secure deliveries early

Speaker 6: Yeah. Absolutely. Another question we have is that Anna described that you have grown with 24% now, CAGR during the period. Are you investing enough to really support that growth or getting capacity out there in a decent way? What's your opinion there? Yeah. yeah Absolutely. absolutely Another question we have is that Anna described that you have grown with 24% now, CAGR during the period. another question we have is that anna described that you have grown with 24% now cagr during the period Are you investing enough to really support that growth or getting capacity out there in a decent way? are you investing enough to really support that growth or getting capacity out there in a decent way What's your opinion there? what's your opinion there

Speaker 8: I think we are. I think we will continue to invest, that much I can say. We invest on the level of $8 billion-$10 billion a year in increasing capacity, and that continues now. We will adapt that of course, to when we have everything in place, which we don't have yet. We have facilities in U.S. coming into play this year and in India next year. We will continue to invest, as we've shown already in the first quarter, to make sure that we can handle our backlog, but also the demand in the market. We are forward leaning here. I think we are. i think we are I think we will continue to invest, that much I can say. i think we will continue to invest that much i can say We invest on the level of $8 billion-$10 billion a year in increasing capacity, and that continues now. we invest on the level of $8 billion-$10 billion a year in increasing capacity and that continues now We will adapt that of course, to when we have everything in place, which we don't have yet. we will adapt that of course to when we have everything in place which we don't have yet We have facilities in U.S. coming into play this year and in India next year. we have facilities in u.s coming into play this year and in india next year We will continue to invest, as we've shown already in the first quarter, to make sure that we can handle our backlog, but also the demand in the market. we will continue to invest as we've shown already in the first quarter to make sure that we can handle our backlog but also the demand in the market We are forward leaning here. we are forward leaning here

Speaker 6: Yeah. Absolutely. Thank you very much. Please, operator, do we have the next question from the telephone conference? Yeah. yeah Absolutely. absolutely Thank you very much. thank you very much Please, operator, do we have the next question from the telephone conference? please operator do we have the next question from the telephone conference

Speaker 9: The next question from the phone comes from the line of Henric Hintze, ABG. Please go ahead. The next question from the phone comes from the line of Henric Hintze, ABG. the next question from the phone comes from the line of henric hintze abg Please go ahead. please go ahead

Speaker 5: Hi. This is Henric at ABG. First of all, I just wanted to ask on the Aeronautics margin here. It was down year on year, and I think even if you exclude the increased R&D amortization, it was still down a bit. At the same time, you're saying that Gripen is ramping while T-7A startup costs are still impacting negatively. I'm just wondering how we should think about that margin development there, given those things. Hi. hi This is Henric at ABG. this is henric at abg First of all, I just wanted to ask on the Aeronautics margin here. first of all i just wanted to ask on the aeronautics margin here It was down year on year, and I think even if you exclude the increased R&D amortization, it was still down a bit. it was down year on year and i think even if you exclude the increased r&d amortization it was still down a bit At the same time, you're saying that Gripen is ramping while T-7A startup costs are still impacting negatively. at the same time you're saying that gripen is ramping while t-7a startup costs are still impacting negatively I'm just wondering how we should think about that margin development there, given those things. i'm just wondering how we should think about that margin development there given those things

Speaker 8: From a generic perspective, I would say that I've always said that sort of without the under absorption and the startup things we have on the T-7 and the mix of other things, this business has the potential to have sort of high single-digit numbers on the EBIT side. That's what we're aiming for in the end. Now we had the higher amortizations, we had the effects of the T-7, and then we had the currency effects at the same time. Nothing sort of major happened elsewhere in the organization. They are ramping up and they are growing. That's sort of the trend view one should have going forward. That's what we are aiming for, and we will get there. From a generic perspective, I would say that I've always said that sort of without the under absorption and the startup things we have on the T-7 and the mix of other things, this business has the potential to have sort of high single-digit numbers on the EBIT side. from a generic perspective i would say that i've always said that sort of without the under absorption and the startup things we have on the t-7 and the mix of other things this business has the potential to have sort of high single-digit numbers on the ebit side That's what we're aiming for in the end. that's what we're aiming for in the end Now we had the higher amortizations, we had the effects of the T-7, and then we had the currency effects at the same time. now we had the higher amortizations we had the effects of the t-7 and then we had the currency effects at the same time Nothing sort of major happened elsewhere in the organization. nothing sort of major happened elsewhere in the organization They are ramping up and they are growing. they are ramping up and they are growing That's sort of the trend view one should have going forward. that's sort of the trend view one should have going forward That's what we are aiming for, and we will get there. that's what we are aiming for and we will get there

Speaker 2: Just to add on the currency we had in the quarter, comparing quarter Q1 2025, we have a positive currency impact, and this quarter we had a negative, so the effect is double, so to say. Just to add on the currency we had in the quarter, comparing quarter Q1 2025, we have a positive currency impact, and this quarter we had a negative, so the effect is double, so to say. just to add on the currency we had in the quarter comparing quarter q1 2025 we have a positive currency impact and this quarter we had a negative so the effect is double so to say

Speaker 8: Exactly. Exactly. exactly

Speaker 2: Bigger. Bigger. bigger

Speaker 8: Mm-hmm. Mm-hmm. mm-hmm

Speaker 5: Okay. It's mainly the currency impact. Okay. okay It's mainly the currency impact. it's mainly the currency impact

Speaker 8: Yeah. Yeah. yeah

Speaker 5: Yeah. Now that you mentioned, you usually say high single-digit EBIT margin for Aeronautics. Does the move of the Naval Combat Systems business unit in any way alter what you have previously said about the margin potentials in Surveillance and Kockums? Yeah. yeah Now that you mentioned, you usually say high single-digit EBIT margin for Aeronautics. now that you mentioned you usually say high single-digit ebit margin for aeronautics Does the move of the Naval Combat Systems business unit in any way alter what you have previously said about the margin potentials in Surveillance and Kockums? does the move of the naval combat systems business unit in any way alter what you have previously said about the margin potentials in surveillance and kockums

Speaker 8: Well, we don't really guide on margins like that, but if you look at the mix of the business, of course, that changes a bit. Now, the Naval Combat Systems, which you can actually dig into a bit, has the potential to be higher than the average 6% that we've shown in the slides here all the time. It depends a lot on sort of the project set up and whether you have a couple of problematic projects, which we've had, and we've taken actions now to secure for the future that we don't get into more problems. It has potential. If you look at what can be done from a business perspective, having both sort of manned platform and unmanned capability in the naval domain connected to a combat management system, that is an offer that has potential to increase the margins, going further. Well, we don't really guide on margins like that, but if you look at the mix of the business, of course, that changes a bit. well we don't really guide on margins like that but if you look at the mix of the business of course that changes a bit Now, the Naval Combat Systems, which you can actually dig into a bit, has the potential to be higher than the average 6% that we've shown in the slides here all the time. now the naval combat systems which you can actually dig into a bit has the potential to be higher than the average 6% that we've shown in the slides here all the time It depends a lot on sort of the project set up and whether you have a couple of problematic projects, which we've had, and we've taken actions now to secure for the future that we don't get into more problems. it depends a lot on sort of the project set up and whether you have a couple of problematic projects which we've had and we've taken actions now to secure for the future that we don't get into more problems It has potential. it has potential If you look at what can be done from a business perspective, having both sort of manned platform and unmanned capability in the naval domain connected to a combat management system, that is an offer that has potential to increase the margins, going further. if you look at what can be done from a business perspective having both sort of manned platform and unmanned capability in the naval domain connected to a combat management system that is an offer that has potential to increase the margins going further Since literally just pure facts is, of course, that if you remove sort of the Naval Combat Systems business from Surveillance, you automatically get a little bit of higher margin, since we've said that it had 6% average since 2024. That's sort of the effects that we've seen so far. The business will tell what the Naval business area will go when it comes to margins going forward. It has potential. That's why we've done it as well, to do more comprehensive business with combat system integration involved. Since literally just pure facts is, of course, that if you remove sort of the Naval Combat Systems business from Surveillance, you automatically get a little bit of higher margin, since we've said that it had 6% average since 2024. since literally just pure facts is of course that if you remove sort of the naval combat systems business from surveillance you automatically get a little bit of higher margin since we've said that it had 6% average since 2024 That's sort of the effects that we've seen so far. that's sort of the effects that we've seen so far The business will tell what the Naval business area will go when it comes to margins going forward. the business will tell what the naval business area will go when it comes to margins going forward It has potential. it has potential That's why we've done it as well, to do more comprehensive business with combat system integration involved. that's why we've done it as well to do more comprehensive business with combat system integration involved

Speaker 5: Okay. Very good. Maybe one final one from me just on Peru, because there's been some news in the past couple of days here about the U.S. saying that Peru has decided to go with the F-16. Have you heard anything concrete from Peru? Okay. okay Very good. very good Maybe one final one from me just on Peru, because there's been some news in the past couple of days here about the U.S. saying that Peru has decided to go with the F-16. maybe one final one from me just on peru because there's been some news in the past couple of days here about the u.s saying that peru has decided to go with the f-16 Have you heard anything concrete from Peru? have you heard anything concrete from peru

Speaker 8: I've looked at media the last sort of 24 hours, and if it's true that they have selected F-16, of course, we have to respect that. We still think we had a better cost-efficient, better offer. It's up to Peru to decide which one they want. We're looking into details, of course, to find out more, but I don't know more than that right now. I've looked at media the last sort of 24 hours, and if it's true that they have selected F-16, of course, we have to respect that. i've looked at media the last sort of 24 hours and if it's true that they have selected f-16 of course we have to respect that We still think we had a better cost-efficient, better offer. we still think we had a better cost-efficient better offer It's up to Peru to decide which one they want. it's up to peru to decide which one they want We're looking into details, of course, to find out more, but I don't know more than that right now. we're looking into details of course to find out more but i don't know more than that right now

Speaker 5: Okay. Thank you very much. Okay. okay Thank you very much. thank you very much

Speaker 8: Thank you. Thank you. thank you

Speaker 6: Thank you very much, Henric. We got another detailed question here from the web chat, and it's about Skeldar. You wrote about that you had good growth in Skeldar, and that also you had an improved result from that part. What is Skeldar actually? Thank you very much, Henric. thank you very much henric We got another detailed question here from the web chat, and it's about Skeldar. we got another detailed question here from the web chat and it's about skeldar You wrote about that you had good growth in Skeldar, and that also you had an improved result from that part. you wrote about that you had good growth in skeldar and that also you had an improved result from that part What is Skeldar actually? what is skeldar actually

Speaker 8: Skeldar is a rotary mid-size. Not a mid-size helicopter, but it's a rotary mid-size drone you would say, that can do surveillance or, yeah, it can actually carry effectors as well. It has had sort of an uplift in terms of contract because it's needed in Ukraine. That's what it is, it's a rotary drone, but a little bit bigger size. It's often used in the naval domain from ships to do surveillance and even actually checking what kind of fuel in the commercial market ships are using because it can sort of, what do you call it, smell the fuel type of that. It has potential application wise, yeah. Skeldar is a rotary mid-size. skeldar is a rotary mid-size Not a mid-size helicopter, but it's a rotary mid-size drone you would say, that can do surveillance or, yeah, it can actually carry effectors as well. not a mid-size helicopter but it's a rotary mid-size drone you would say that can do surveillance or yeah it can actually carry effectors as well It has had sort of an uplift in terms of contract because it's needed in Ukraine. it has had sort of an uplift in terms of contract because it's needed in ukraine That's what it is, it's a rotary drone, but a little bit bigger size. that's what it is it's a rotary drone but a little bit bigger size It's often used in the naval domain from ships to do surveillance and even actually checking what kind of fuel in the commercial market ships are using because it can sort of, what do you call it, smell the fuel type of that. it's often used in the naval domain from ships to do surveillance and even actually checking what kind of fuel in the commercial market ships are using because it can sort of what do you call it smell the fuel type of that It has potential application wise, yeah. it has potential application wise yeah

Speaker 6: Okay. Good. Thank you. Thanks for the clarification. Operator, do we have any more questions on the telephone? Okay. okay Good. good Thank you. thank you Thanks for the clarification. thanks for the clarification Operator, do we have any more questions on the telephone? operator do we have any more questions on the telephone

Speaker 9: The next question comes from the line of Tom Guinchard, Pareto Securities. Please go ahead. The next question comes from the line of Tom Guinchard, Pareto Securities. the next question comes from the line of tom guinchard pareto securities Please go ahead. please go ahead

Speaker 10: Thank you. A question on the, let's say, new Surveillance division without Naval Combat Systems. In terms of mix and margin here on the Giraffe program, you said the 1X is ramping to 300 a year. Thank you. thank you A question on the, let's say, new Surveillance division without Naval Combat Systems. a question on the let's say new surveillance division without naval combat systems In terms of mix and margin here on the Giraffe program, you said the 1X is ramping to 300 a year. in terms of mix and margin here on the giraffe program you said the 1x is ramping to 300 a year How much could that contribute to margins? Because my guess is that the smaller systems tend to have higher margins than the 4As. Is that a correct assumption, or how should we look at the sort of mix moving forward? How much could that contribute to margins? how much could that contribute to margins Because my guess is that the smaller systems tend to have higher margins than the 4As. because my guess is that the smaller systems tend to have higher margins than the 4as Is that a correct assumption, or how should we look at the sort of mix moving forward? is that a correct assumption or how should we look at the sort of mix moving forward

Speaker 8: It's very good to have volume on that side. You're absolutely right. It does have good margins, and it is really cost efficient also from the customer side in terms of how capable that sensor is, and that's why the demand is so high. However, it's not as if I'm trying to tout the most expensive sensor. If you look at the portfolio of Surveillance, of course, the GlobalEye business and the more long-range type of sensor capability is of course creating higher volumes in terms of revenue. The more Giraffe 1Xs that we get out of the house and sell, of course, that helps the margin. No question about it. How that will balance the other parts of the portfolio is a little bit hard to say right now. It's very good to have volume on that side. it's very good to have volume on that side You're absolutely right. you're absolutely right It does have good margins, and it is really cost efficient also from the customer side in terms of how capable that sensor is, and that's why the demand is so high. it does have good margins and it is really cost efficient also from the customer side in terms of how capable that sensor is and that's why the demand is so high However, it's not as if I'm trying to tout the most expensive sensor. however it's not as if i'm trying to tout the most expensive sensor If you look at the portfolio of Surveillance, of course, the GlobalEye business and the more long-range type of sensor capability is of course creating higher volumes in terms of revenue. if you look at the portfolio of surveillance of course the globaleye business and the more long-range type of sensor capability is of course creating higher volumes in terms of revenue The more Giraffe 1Xs that we get out of the house and sell, of course, that helps the margin. the more giraffe 1xs that we get out of the house and sell of course that helps the margin No question about it. no question about it How that will balance the other parts of the portfolio is a little bit hard to say right now. how that will balance the other parts of the portfolio is a little bit hard to say right now When you get big contracts on the GlobalEye, that will be dominating, also good margins, but maybe not as good as a G1Xs. It helps, that much I can say. When you get big contracts on the GlobalEye, that will be dominating, also good margins, but maybe not as good as a G1Xs. when you get big contracts on the globaleye that will be dominating also good margins but maybe not as good as a g1xs It helps, that much I can say. it helps that much i can say

Speaker 10: Thanks. In terms of R&D, are you looking at radar systems that are even more long range, or are you sticking with the sort of existing platforms and building on them? Thanks. thanks In terms of R&D, are you looking at radar systems that are even more long range, or are you sticking with the sort of existing platforms and building on them? in terms of r&d are you looking at radar systems that are even more long range or are you sticking with the sort of existing platforms and building on them

Speaker 8: Well, we're not in the line of those super big long-range systems, but we do systems up until 500 km on the land-based side, same on the naval side. Then we have the whole portfolio to the G1X then, which is 150km-200 km in terms of range. That's where we are, and we are investing, of course, in fighter sensor capability, which is important to us. Then other versions of unmanned capability when it comes to airborne early warning. There is lots happening on the sensor side for sure, but that's sort of where the R&D is going. The other big portion of the R&D is, of course, autonomous systems, in all domains, when it comes to the air domain, land domain, but especially now the air domain and the naval domain. Well, we're not in the line of those super big long-range systems, but we do systems up until 500 km on the land-based side, same on the naval side. well we're not in the line of those super big long-range systems but we do systems up until 500 km on the land-based side same on the naval side Then we have the whole portfolio to the G1X then, which is 150km-200 km in terms of range. then we have the whole portfolio to the g1x then which is 150km-200 km in terms of range That's where we are, and we are investing, of course, in fighter sensor capability, which is important to us. that's where we are and we are investing of course in fighter sensor capability which is important to us Then other versions of unmanned capability when it comes to airborne early warning. then other versions of unmanned capability when it comes to airborne early warning There is lots happening on the sensor side for sure, but that's sort of where the R&D is going. there is lots happening on the sensor side for sure but that's sort of where the r&d is going The other big portion of the R&D is, of course, autonomous systems, in all domains, when it comes to the air domain, land domain, but especially now the air domain and the naval domain. the other big portion of the r&d is of course autonomous systems in all domains when it comes to the air domain land domain but especially now the air domain and the naval domain Using AI is another big thing in terms of R&D right now, to give you a flavor of where R&D is going. Using AI is another big thing in terms of R&D right now, to give you a flavor of where R&D is going. using ai is another big thing in terms of r&d right now to give you a flavor of where r&d is going

Speaker 10: Perfect. Thank you. Perfect. perfect Thank you. thank you

Speaker 6: Thank you very much, Tom. Operator, do we have any final question in the telephone conference? Thank you very much, Tom. thank you very much tom Operator, do we have any final question in the telephone conference? operator do we have any final question in the telephone conference

Speaker 9: The last question comes from the line of Afonso Osório from Barclays. Please go ahead. The last question comes from the line of Afonso Osório from Barclays. the last question comes from the line of afonso osório from barclays Please go ahead. please go ahead

Speaker 1: Hello, everyone. Good morning. Thank you for taking my questions. Micael, I think you mentioned before that you expect positive cash flow going forward. Is that on the annual figures, or would you expect positive cash flow from a quarterly basis this year as well? Just double-checking on that. On the T-7 program, I appreciate it's still quite difficult to see the phasing of this in the coming quarters, but what is the current run rate on the P&L from this contract? Just one final quick one on the Middle East situation. When do you probably see this incremental demand flowing through your numbers? Is it going to be mostly from 2027, or do you expect something extra in 2026 as well? Thank you. Hello, everyone. hello everyone Good morning. good morning Thank you for taking my questions. thank you for taking my questions Micael, I think you mentioned before that you expect positive cash flow going forward. micael i think you mentioned before that you expect positive cash flow going forward Is that on the annual figures, or would you expect positive cash flow from a quarterly basis this year as well? is that on the annual figures or would you expect positive cash flow from a quarterly basis this year as well Just double-checking on that. just double-checking on that On the T-7 program, I appreciate it's still quite difficult to see the phasing of this in the coming quarters, but what is the current run rate on the P&L from this contract? on the t-7 program i appreciate it's still quite difficult to see the phasing of this in the coming quarters but what is the current run rate on the p&l from this contract Just one final quick one on the Middle East situation. just one final quick one on the middle east situation When do you probably see this incremental demand flowing through your numbers? when do you probably see this incremental demand flowing through your numbers Is it going to be mostly from 2027, or do you expect something extra in 2026 as well? is it going to be mostly from 2027 or do you expect something extra in 2026 as well Thank you. thank you

Speaker 8: Well, on the T7, you can look at last year, roughly SEK 100 million sort of on average and under absorption. That will improve when we get more platforms out of the facility, of course. That's roughly the run rate, if I remember correctly. The Middle East is we have some sort of business in Middle East. It's sort of airborne early warning. It's some command and control, and then sensors. There is substantial demand on the sensing side right now, and how much that, where that will go. Some deliveries is happening as we speak, and then there will be more deliveries coming. We've already delivered from demand and delivered within two weeks, so that's why it's important to manufacture G1Xs on speculation rather than done on contract. The first one was- Well, on the T7, you can look at last year, roughly SEK 100 million sort of on average and under absorption. well on the t7 you can look at last year roughly sek 100 million sort of on average and under absorption That will improve when we get more platforms out of the facility, of course. that will improve when we get more platforms out of the facility of course That's roughly the run rate, if I remember correctly. that's roughly the run rate if i remember correctly The Middle East is we have some sort of business in Middle East. the middle east is we have some sort of business in middle east It's sort of airborne early warning. it's sort of airborne early warning It's some command and control, and then sensors. it's some command and control and then sensors There is substantial demand on the sensing side right now, and how much that, where that will go. there is substantial demand on the sensing side right now and how much that where that will go Some deliveries is happening as we speak, and then there will be more deliveries coming. some deliveries is happening as we speak and then there will be more deliveries coming We've already delivered from demand and delivered within two weeks, so that's why it's important to manufacture G1Xs on speculation rather than done on contract. we've already delivered from demand and delivered within two weeks so that's why it's important to manufacture g1xs on speculation rather than done on contract The first one was- the first one was-

Speaker 6: Was that we promise a positive cash flow every quarter, or is it more on a yearly- Was that we promise a positive cash flow every quarter, or is it more on a yearly- was that we promise a positive cash flow every quarter or is it more on a yearly-

Speaker 8: The guidance we have is just sort of cash conversion higher than 60% over the period of 2023 to 2027. There are always fluctuations between quarters when it comes to cash flow, depending on where the payment milestones lies and how our investments comes into play. I can't give you any specifics on each quarter. I can conclude that despite substantial investments this quarter, we had a good operational cash flow, which is excellent, which means that we get payments from our customers as well continuously. It's important to develop that way, either sort of advanced payments to finance initial things in programs or dense milestones in the contracts. That doesn't mean that we have to be sort of acting as a bank towards the customer, and we're moving in that direction. Cash flow positive is important and more than 60% over the period. The guidance we have is just sort of cash conversion higher than 60% over the period of 2023 to 2027. the guidance we have is just sort of cash conversion higher than 60% over the period of 2023 to 2027 There are always fluctuations between quarters when it comes to cash flow, depending on where the payment milestones lies and how our investments comes into play. there are always fluctuations between quarters when it comes to cash flow depending on where the payment milestones lies and how our investments comes into play I can't give you any specifics on each quarter. i can't give you any specifics on each quarter I can conclude that despite substantial investments this quarter, we had a good operational cash flow, which is excellent, which means that we get payments from our customers as well continuously. i can conclude that despite substantial investments this quarter we had a good operational cash flow which is excellent which means that we get payments from our customers as well continuously It's important to develop that way, either sort of advanced payments to finance initial things in programs or dense milestones in the contracts. it's important to develop that way either sort of advanced payments to finance initial things in programs or dense milestones in the contracts That doesn't mean that we have to be sort of acting as a bank towards the customer, and we're moving in that direction. that doesn't mean that we have to be sort of acting as a bank towards the customer and we're moving in that direction Cash flow positive is important and more than 60% over the period. cash flow positive is important and more than 60% over the period

Speaker 2: Yep. Yep. yep

Speaker 6: Perfect. Operator, I think we have a final question. Is it from Morgan Stanley, or do we have anyone left in the queue? Perfect. perfect Operator, I think we have a final question. operator i think we have a final question Is it from Morgan Stanley, or do we have anyone left in the queue? is it from morgan stanley or do we have anyone left in the queue

Speaker 9: Yes. Marie-Ange Riggio from Morgan Stanley. Please go ahead. Yes. yes Marie-Ange Riggio from Morgan Stanley. marie-ange riggio from morgan stanley Please go ahead. please go ahead

Speaker 7: Thank you. Thank you very much for taking my question. I have two, actually. The first one is on Aeronautics. Can you just describe your production ramp-up of the Gripen? Because I think you have quite a target internally to go to 20-30 aircraft in the future. Maybe just can you remind us what is your current production rate and where are you in this journey to increase the rate? Thank you. thank you Thank you very much for taking my question. thank you very much for taking my question I have two, actually. i have two actually The first one is on Aeronautics. the first one is on aeronautics Can you just describe your production ramp-up of the Gripen? can you just describe your production ramp-up of the gripen Because I think you have quite a target internally to go to 20-30 aircraft in the future. because i think you have quite a target internally to go to 20-30 aircraft in the future Maybe just can you remind us what is your current production rate and where are you in this journey to increase the rate? maybe just can you remind us what is your current production rate and where are you in this journey to increase the rate The second question is on Ukraine, because we have seen increasing conversation about the EUR 90 billion loan for Ukraine from Europe recently. What we imply for Saab as a whole, for the whole portfolio, and probably have you seen any progress in your discussion with them about the fighter jet contract and can this EUR 90 billion loan be a source of funding for at least a first batch? Thank you very much. The second question is on Ukraine, because we have seen increasing conversation about the EUR 90 billion loan for Ukraine from Europe recently. the second question is on ukraine because we have seen increasing conversation about the eur 90 billion loan for ukraine from europe recently What we imply for Saab as a whole, for the whole portfolio, and probably have you seen any progress in your discussion with them about the fighter jet contract and can this EUR 90 billion loan be a source of funding for at least a first batch? what we imply for saab as a whole for the whole portfolio and probably have you seen any progress in your discussion with them about the fighter jet contract and can this eur 90 billion loan be a source of funding for at least a first batch Thank you very much. thank you very much

Speaker 8: Well, when it comes to Ukraine, you're right. Positive news on that sort of the funds will be released, of course, the EUR 90 billion, and from that, the EUR 60 billion is supposed to be used for military investments. I assume it's not up to industry to create the funding structure of a deal on the fighter aircraft, but some of that money must be used, of course, for the fighter acquisition, and then has to be supported from other countries like Sweden and others that want to support Ukraine with fighter capability going forward. That's moving in the right direction now, but we don't sort of wait for that in terms of the discussions with the end user on the fighter discussion. Well, when it comes to Ukraine, you're right. well when it comes to ukraine you're right Positive news on that sort of the funds will be released, of course, the EUR 90 billion, and from that, the EUR 60 billion is supposed to be used for military investments. positive news on that sort of the funds will be released of course the eur 90 billion and from that the eur 60 billion is supposed to be used for military investments I assume it's not up to industry to create the funding structure of a deal on the fighter aircraft, but some of that money must be used, of course, for the fighter acquisition, and then has to be supported from other countries like Sweden and others that want to support Ukraine with fighter capability going forward. i assume it's not up to industry to create the funding structure of a deal on the fighter aircraft but some of that money must be used of course for the fighter acquisition and then has to be supported from other countries like sweden and others that want to support ukraine with fighter capability going forward That's moving in the right direction now, but we don't sort of wait for that in terms of the discussions with the end user on the fighter discussion. that's moving in the right direction now but we don't sort of wait for that in terms of the discussions with the end user on the fighter discussion We are, of course, working on the proposal and the negotiations as we speak on how to, over a period of time, get fighter capability to Ukraine as quickly as possible, which means that we are also looking into investments for that sort of ramp up that would mean if they go for, in the end, over many years, of course, 150 aircraft, that would mean that we have to sort of ramp up for deliveries on that from 2028, 2029 going forward. That we're doing as well. The first one once again. We are, of course, working on the proposal and the negotiations as we speak on how to, over a period of time, get fighter capability to Ukraine as quickly as possible, which means that we are also looking into investments for that sort of ramp up that would mean if they go for, in the end, over many years, of course, 150 aircraft, that would mean that we have to sort of ramp up for deliveries on that from 2028, 2029 going forward. we are of course working on the proposal and the negotiations as we speak on how to over a period of time get fighter capability to ukraine as quickly as possible which means that we are also looking into investments for that sort of ramp up that would mean if they go for in the end over many years of course 150 aircraft that would mean that we have to sort of ramp up for deliveries on that from 2028 2029 going forward That we're doing as well. that we're doing as well The first one once again. the first one once again

Speaker 6: First one was our, say, the target capacity for Gripen, as we have said, is 20-30 or progressing- First one was our, say, the target capacity for Gripen, as we have said, is 20-30 or progressing- first one was our say the target capacity for gripen as we have said is 20-30 or progressing-

Speaker 8: Let's say we are at roughly 15 a year now, and then we have now started to deliver from Brazil hub, and then we are looking at, depending on the contracts that we get, to be sort of somewhere between 20-30 and more likely to the higher end of that span. That's how I see it, and that is as quickly as possible. I would say to be around 20 in a year's time is quite possible, or a couple of years time, a little bit higher than that. That's sort of the timeframe a bit, generically speaking. Let's say we are at roughly 15 a year now, and then we have now started to deliver from Brazil hub, and then we are looking at, depending on the contracts that we get, to be sort of somewhere between 20-30 and more likely to the higher end of that span. let's say we are at roughly 15 a year now and then we have now started to deliver from brazil hub and then we are looking at depending on the contracts that we get to be sort of somewhere between 20-30 and more likely to the higher end of that span That's how I see it, and that is as quickly as possible. that's how i see it and that is as quickly as possible I would say to be around 20 in a year's time is quite possible, or a couple of years time, a little bit higher than that. i would say to be around 20 in a year's time is quite possible or a couple of years time a little bit higher than that That's sort of the timeframe a bit, generically speaking. that's sort of the timeframe a bit generically speaking

Speaker 6: Good. Thank you very much. Are you all right with that, Marie-Ange? Good. good Thank you very much. thank you very much Are you all right with that, Marie-Ange ? are you all right with that marie-ange

Speaker 7: Yeah. Thank you so much. Yeah. yeah Thank you so much. thank you so much

Speaker 6: Thank you very much. Thank you. Did we have a final question also, operator? Thank you very much. thank you very much Thank you. thank you Did we have a final question also, operator? did we have a final question also operator

Speaker 8: How many final? How many final? how many final

Speaker 6: How many final questions here today? They're popping in. How many final questions here today? how many final questions here today They're popping in. they're popping in

Speaker 8: That's fine. That's fine. that's fine

Speaker 9: The final question is from Daniel Djurberg, Handelsbanken. Please go ahead. The final question is from Daniel Djurberg, Handelsbanken. the final question is from daniel djurberg handelsbanken Please go ahead. please go ahead

Speaker 4: Thank you, operator, and good day, gentlemen. Sorry if this question has been asked already. I had to jump into another call for a minute and ask some questions there as well. The improvement seen in corporate and other, primarily related to the UMS Skeldar operations and the operating income from minority portfolio, is that sustainable or was it one-time items more or less, or how to think? Thank you, operator, and good day, gentlemen. thank you operator and good day gentlemen Sorry if this question has been asked already. sorry if this question has been asked already I had to jump into another call for a minute and ask some questions there as well. i had to jump into another call for a minute and ask some questions there as well The improvement seen in corporate and other, primarily related to the UMS Skeldar operations and the operating income from minority portfolio, is that sustainable or was it one-time items more or less, or how to think? the improvement seen in corporate and other primarily related to the ums skeldar operations and the operating income from minority portfolio is that sustainable or was it one-time items more or less or how to think

Speaker 2: I can answer. We had that question earlier, but I can answer it again, of course. I can answer. i can answer We had that question earlier, but I can answer it again, of course. we had that question earlier but i can answer it again of course

Speaker 4: Yeah. Okay. Sorry. Yeah. yeah Okay. okay sorry Sorry. okay sorry

Speaker 2: No worries at all. No, what we think is when you look at corporate, one good level to look at is the level that we had last year for the full year as a rule of thumb. In corporate, we have several costs that are depending on periodization and costs that come later in different quarters. It's costs related to IT, security. We're also building up our digitalization units and also costs related to the share matching plan, the shareholder program that we have. Different types of costs in corporate and changes over the quarter. It varies over the quarter, I would say. No worries at all. no worries at all No, what we think is when you look at corporate, one good level to look at is the level that we had last year for the full year as a rule of thumb. no what we think is when you look at corporate one good level to look at is the level that we had last year for the full year as a rule of thumb In corporate, we have several costs that are depending on periodization and costs that come later in different quarters. in corporate we have several costs that are depending on periodization and costs that come later in different quarters It's costs related to IT, security. it's costs related to it security We're also building up our digitalization units and also costs related to the share matching plan, the shareholder program that we have. we're also building up our digitalization units and also costs related to the share matching plan the shareholder program that we have Different types of costs in corporate and changes over the quarter. It varies over the quarter, I would say. different types of costs in corporate and changes over the quarter. it varies over the quarter i would say

Speaker 4: Thank you so much for repeating. I will get or I will not be cut back in queue, I will say. I wish you a good Q2 instead. Thank you so much for repeating. thank you so much for repeating I will get or I will not be cut back in queue, I will say. i will get or i will not be cut back in queue i will say I wish you a good Q2 instead. i wish you a good q2 instead

Speaker 8: Okay. Okay. okay Thank you very much. Thank you very much. thank you very much

Speaker 6: Thank you very much. Thank you very much. thank you very much

Speaker 2: Thank you. Thank you. thank you

Speaker 6: Okay, operator, do we have any further questions or? Okay, operator, do we have any further questions or? okay operator do we have any further questions or

Speaker 9: We have no more questions at this time. We have no more questions at this time. we have no more questions at this time

Speaker 6: Okay. I think with that, we thank you everyone very much for listening in to our presentation of the first quarter of 2026. We will be on the road now, first in Stockholm, then we are going to Copenhagen. You can meet us also at the Eurosatory Show in Paris later, and then we will also be in Frankfurt. We will have the Q2 report in July. Thank you very much for listening in, and have a nice day. Thank you. Okay. okay I think with that, we thank you everyone very much for listening in to our presentation of the first quarter of 2026. i think with that we thank you everyone very much for listening in to our presentation of the first quarter of 2026 We will be on the road now, first in Stockholm, then we are going to Copenhagen. we will be on the road now first in stockholm then we are going to copenhagen You can meet us also at the Eurosatory Show in Paris later, and then we will also be in Frankfurt. you can meet us also at the eurosatory show in paris later and then we will also be in frankfurt We will have the Q2 report in July. we will have the q2 report in july Thank you very much for listening in, and have a nice day. thank you very much for listening in and have a nice day Thank you. thank you