A very good afternoon. My name is Mikko Kuusiloft. I'm the group CEO of Robit and I'm joined today by our CFO Ari Suokas and we'll go through our Q2 figures for for 2026. As always we start with a disclaimer and then heading towards the figures and and past performance of Robit in the second quarter. Like we published during the first quarter we had really a strong start to the year and I'm extremely satisfied as the CEO that we were able to continue the good performance also through the second quarter of of 2026. All in all it's fair to say that the market demand is very strong especially on the mining sector but we've seen that throughout the industry that all in all the market is in good performance and gives Robert an opportunity to grow. We saw that the auto intake increased by 10% from last year and our net sales increased by 22.5%. Profit-wise, we were able to keep up the good performance of sustaining our healthy EBIT level. On the cash flow side, we were on the negative side. Ari will tell a bit more of that in the coming slides. And when we look at the sustainability targets that we are targeting, we were able to improve and further improve the emission intensity targets that we have set for ourselves and are reaching towards the targets that we have set in the past years. At the same time, it's fair to highlight that we have had poor performance on our lost time frequency index and naturally as a company of focusing solely and having that as our key priority, we're taking all actions in order to improve the future performance and ensuring that the performance of that index is developing positively. If we look on a broader side of the figures, the first half of the year has been a positive movement from the past performance of rovid we were able to increase like said our our net revenue in the second quarter significantly from the year before and all in all the start of the year has been very positive if we look from the spu perspective we've seen that our revenue in in the top hammer side has slightly decreased but on the down to hold side and especially on the geotechnical side we've had very very positive growth during the past year. The EBITDA has as well improved from the past year. The net cash flow for the operations have been minus 4 million euros. The growth that we've seen has been coming predominantly from the geotechnical side. If we look at the regions and performance of individual regions, especially the Americas, has been performing very well. We have also had positive growth on the EMEA region and been able to keep keep the market or keep the revenue in the Asia region. In Australasia our revenue has decreased from the year before. Ari if you say a few words about the financial figures. Thank you Mikko.
First of all to give you the background that the price pressure continued to be very strong in the market especially driven by the tungsten And our net sales was very good, all in all, totaling to 24 million euros. And it was mainly due to three facts. One, our very active visits towards the customer and active activity towards the customer front. Secondly, our product testings, and thirdly, our capability to provide the confirmation to our customers that our solutions work in different type of ground conditions. Our EBITDA in Q2 increased to 7.3%. EBIT percentage in Q2 turned positive compared to last year when it was negative and Q2 26 result of the period increased and was 0.5 million euros all in all when we look at the EBIT for the first half of the year we are at the moment 2.4 million euros and the net sales is 45.3 million euros for the first half of the year. Moving on to networking capital development here it's good to understand two factors one there has been a rapid increase with the tungsten prices. Tungsten is a key material that is used with bits and the price of tungsten then first was seven to eight times higher at the beginning of the year and now has decreased and stabilized, but it's still three to four times higher, but it was last year in the end of Q2. A second thing that it's good to mention when we look at the networking capital development it is that now we are ramping up multiple multi-year mining contracts and obviously that has a temporary impact to our inventories during the ramp-up phase. Networking capital in all in all increased by 4 million and totaled 45.8 million euros. Our inventories increased to 46.3 million euros and this was driven by uh tungsten prices compared to last year this is uh the increase of 10 million euros 80 percent of that increase is roughly driven by the price and and the rest 20 percent is divided to fx and the volume our recent impulse increased to 20.6 million euros and our papers increased to 21.1 million euros and a networking capital percentage of last 12 months of sales was 55.3 percentages our cash flow before changes in networking capital was 1.9 million euro operating cash flow was negative 2.5 million euros cash flow from investing activities was 0.1 million euro negative and and here it's good to understand that the investing is going according to rapid investment plans also. Cash flow from financing activities resulted to 1.5 million euro. The cash flow impact what we see saw in Q2 we will see also or we expect to see similar impacts also during Q3 and especially here is there are the two reasons. The high tungsten price increases with the carbide pitch and secondly the ramp up of the multi-year mining contracts. Our financial position cash and cash equivalents at the end of Q2 were 7.2 million euros and total interest bearing loans and utilized credit limits were 26.3 million euros and that includes the IFRS 6 lease liabilities of 2.8 million euros. Our net debt decreased and was 19.1 million euros and net debt to 12-month role in EBITDA was 2.64 and we have twice a year at the end of June and end of December financial covenant and the threshold for that financial covenant is 3.5 and we are clearly below that one. Our equity ratio remains strong at 48.4 percentages. The loan maturity loans from our financial institutions at the end of Q2 totaled 23.5 million euros. We have a senior loan amortization of 1.5 million and that's also biannually in end of June and end of December. We have also protected ourselves against the interest rate fluctuation and we have a 10 million euros interest rate swap, which took effect on July 24 and ends 30 of June 2030. Now towards Mikko and Outlook.
Yeah, like I said, the first half and the performance of the first half has been really satisfactory. And of course, many positive things have happened in the background, which have led to the fact that we've been able to sort of turn the negative revenue development of the past into a growth mode. I always say that we are first and foremost a growth oriented company and we need to be a growth company. The market size and the potential that the market offers us in those regions with those products that we are manufacturing. There's plenty of market for Robit to take, which means that our mindset has to be that we are a growth oriented company. What needs to continue is the positive momentum that we are having in the fields. We have to be really, really active together with our distributors in ensuring that they are able to perform better, that they are able to grow, that they are able to penetrate into the markets with our products. We have to sort of ensure that the positive added value that Robit brings through its products is transferred from the presentations and from the speeches into real-life actions in the fields and of course that is something that we have to continue also in the future. The other fundaments remain the same. We have to be really active in the pricing sector. The tungsten development that has evolved during the last 12 months, of course, has been a major disturbance in the market and has created many challenges to the competitive environment, to the customers with the uncertainty of understanding how the prices will develop. And that's of course something that we need to work on a daily basis to ensure that we are able to transfer the information of our prices, but also transfer the information about how we expect or how we see that the future will evolve of course the challenge with the tungsten is that the forecasting towards the future is really really difficult actually impossible so we have to live on the daily figures where we stand but fortunately we've seen the situation that we've come down from the high peak that that was seen earlier this year to a lower level but naturally we are still way above the historical sort of average levels that we've seen during the last years so customer activity is the key for us. We have to be active in the frontline. We have to be active in visiting the customers. That's the base fundament for our future success and that work has to continue also in the coming quarters. Of course, it's easier to have that sort of positive momentum in the background. It's easier to communicate this also throughout the organization, through our distributors, that we are able to be successful. So that's of course a positive thing that we are able to carry us that that's easy to carry through the through the communication but of course the work needs to continue every single morning that we come to the office and every single day that we even meet our customers and and that's basically the the standpoint also for the coming months that the hard work that we've done in the past has to continue and we have to be even better than we've been in the past in order to ensure that we see a future growth momentum also in property. Then, last but not least, before we go into the questions, the guidance remains the same. We still estimate that the net sales will increase from 2025, as well as the EBIT profitability will also increase from last year.
Ari, do we have any questions online or yes now moving to thank you Mikko now moving to the questions and answers are there any questions voice related questions we have few questions in the chat functionality I assume not then let's proceed so that I will read the question and let's take look after that one which one of course will reply to the question first question comes from Apeli Purisimo from Inderes, how does your sales pipeline look like?
Yeah, we came out during the second quarter with announcements regarding multiple mining contracts that we've been able to sign and that's of course something fantastic to come up with or come out with with that type of information. In that sense when looking at the announcements that we made when you when looking at the the order intake that we've been able to collect of because the situation where we stand at the moment is, in that sense, better than it has been in the past. At the same time, of course, that work needs to continue to ensure that we are able to continuously increase our order intake. And these, naturally, these type of successes that we've had with this mining contract is something positive, but it's something that has to continue and has to develop day after day, month after month. Thank you Mikko.
Second question from Apeli and you partially replied to this one already but could you describe how does your pricing work regarding tungsten price in a rapid upward or downward pressure what we have been seeing lately.
Now it was a headwind in Q2 and probably will be also in Q3 but is there going to be a tailwind for Q4 if the price remains around current level? yeah i won't go into details how the pricing mechanism mechanism works for for for the tungstens and but of course the situation is that that there's there's always always a market price for the products and and and now what we've seen during the last um six to nine months is is that there's there's large fluctuation in within markets and and within different product groups with the with that sort of market price due to the fact that the competitive environment is living in different cycles and some companies are taking more risk, some companies are taking less risk with the tungsten price development. Our job is of course to ensure that we are safeguarding the profitability of the company and do the utmost to ensure that we are able to transfer that price development into the unit prices of our products. Sometimes it works better than in other cases but like I said it's then in the end it is the market price that demanding the market price that then dictates the level of possibilities of pushing it fully or in some other extent.
Thank you Mikko. The next question also is around the same topic.
Can you discuss a bit how has the competition situation developed lately and has tungsten price development and affected it yeah pretty much also answered that one in in my my previous previous uh comment but all in all i wouldn't say that the competitive environment has changed it has always been tough it'll always be tough we're no different business from any other business there's always competition in the market and and and you need to live with that and you have to be able to be successful uh not just price wise but also quality wise and like i've said in the past that that if we position ourselves just purely on price not on not on performance not on quality then we are fighting in the in the wrong type of field um but clearly of course when when when the when the business environment especially on the mining side is is very strong and the forecast also for the future and the mining sector is very positive it means that they there's there they are existing players and new players trying to enter the market and and the competition is always there so so has been tough will continue to be tough and then of course the the fluctuation with the tungsten price is something that has of course been been then disturbing that competitive environment even even more for everyone in the market due to the fact that that that so-called market price has been a bit harder to understand due to the fact that different companies are living in a different sort of time zone in terms of implementing those tungsten changes into their product prices. Thank you Mikko.
The last question that we have on the chat functionality is when you expect cash flow to turn positive still in H2 or will it take it into 27? I can take this one. Now there's two elements with the cash flow that it's good to understand. One is the tungsten and the second is obviously the ramp up of the mining contracts where I highlighted. Now Robit is a growth company. Our target is to grow, like Mikko highlighted very clearly, the tungsten price has stabilized now. If we assume that the tungsten will remain on the similar level, it will not create such a disturbance to the market continuously, and that will obviously help with a positive development. But that will not help us already in Q3, but that will help us in in Q4 so that will be the latter part of 26. Obviously we are targeting to grow in coming quarters and if we continue to grow we need to ensure there's availability of our products and then that might a bit disturb the cash flow during the rapid growth phase but obviously we monitor continuously the cash flow but it's good to understand these few limitations that there are also with the with the cash flow are there any more questions i don't see at the moment in the line so in in that case uh thank you very much uh for participating to our webcast yeah
